Introduction Lewis Jeans operates as a manufacturer of jeans for ten years, and is currently one of the leading producers in the UK. 300 employees are divided into three geographical areas, with the head office in Croydon.
Due to a number of contributing factors, there has been a decline in sales and profits compared to the previous 12 month period.
Sales - 20% reduction
Profit - 40% reduction
Returns due to quality problems - 15%
These figures, coupled with an alarming turnover of staff , and high production costs have meant that a thorough review of the whole structure of society is needed to stop further degeneration, and to allow to re-establish itself as a market leader.
This report will investigate the following areas:
Organization and management structure
Organizational culture
staff motivation
Each of these areas will be considered under Lewis Jeans and formal advice It will be given coverage: strengths and weaknesses inherent in Lewis Jeans. Recommendations for improvement.
organizational and managerial structures
"An organization is a system that has a past and conscious planning structure, in which people work and deal with each other in a coordinated and cooperative for the realization of tasks recognized "
the paragraph above is a typical definition of what makes an organization. The type of structure will affect everything about the organization, including the relations among individuals, which has the power within the authority to make decisions, and how information is communicated throughout the organization. Get the right structure in place to meet the organization's goals, and his personal aspirations is essential if the business is to prosper.
Lewis Jeans currently operates a geographic structure. Three production plants are located in the North zone, center and south of the UK. This geographical grouping of functions may be a viable option for some organizations, Tesco PLC is a prime example. Tesco needs to stores in most cities to allow its customers to purchase the goods it offers.
The geographical structure can have a number of advantages: respond quickly to local needs and issues, allowing the organization to become more sensitive to the needs of customers and employees. Bureaucratic 'red tape' can be reduced if each division is empowered with greater decision-making authority. There is a greater ability to customize the operations of local differences, such as language, law etc.
However, there may also be significant disadvantages: The duplication of structures and roles. They are required additional management positions. The lack of unity in goals and direction of the semi-autonomous units.
Lewis Jeans has little need for a geographic structure for the organization and many of the disadvantages discussed manifest themselves within the company. The argument for the three plants could reasonably be done if Lewis Jeans produced more products that required different processes, staff skills, equipment and machinery, and the supply of these products to different markets with specific needs. A company that primarily produces a range of products can benefit from a central manufacturing facility. One could argue that more storage facilities and distribution can be beneficial, and could result in a more economical production process, with efficient distribution throughout the UK.
The simplified organization chart below shows how the organization could be rationalized. The links flowing from top to bottom show the hierarchical structure (the direction of authority from above downwards). The horizontal lines show the lines of communication that must exist between functional areas. Each 'zone' forms a specialized team that will encourage teamwork.
A central management team consists of specialists in every field make strategic decisions on the objectives and the company's policy. daily meetings allow current and future issues to be decided quickly and efficiently. lower-level managers, to be developed through training, assessments, etc., will make decisions about the daily management of their departments. This allows the management team to look at 'the big picture' and not be consumed by day-to-day production, sales and distribution problems.
functional structure
The simplified organizational chart above shows how a functional structure may work for Lewis Jeans. The activity is divided according to business function performed by each department. Each functional area performs its specialized role in work towards the goals of the organization. Groups of specialists are delegated control over specific work areas, thus avoiding duplication within the company. The potential problems with regard to inter-departmental transfers and rivalries can occur but it is for the management team to solve these problems before they occur.
Product Basic Structure
The organization is divided by the products it sells. Each unit of product performs all business functions, while working towards the goals and objectives organizations. With only one main product, or a variation on the theme, this structural framework would benefit Lewis Jeans.
Matrix Structure
In a large organization can be useful to allow members of society must fall into more than one functional group. The introduction of "product development of Teams' that can produce more than one product (jeans, denim jackets) may be helpful. Marketing and sales could be linked, with the specialists who work in both areas.
Matrix structures have a number of advantages: the organization may focus on a number of purposes at the same time. the flexibility to adapt and respond to changing needs and resources. exchange of ideas between the multi-role personal, instead of insular approach isolated departments.
L '' matrix approach 'can result in an overly complicated structure, with employees losing sight of the main goals of the organization, a cause of more than one chain of command, you can check power struggles.
the geographical structure of Lewis Jeans can not be justified at this time. a central production units would have good business sense, locals who provide could be adapted, or new premises located. Alternatively, the North and South of production facilities, with an additional deposit central distribution allow adequate financial savings, coupled with greater efficiency. A new single production unit may authorize a reduction of as much as 30-40% staff, it depends on process improvement, technology transfer etc. of staff may be possible if they are introduced deposits for local distribution. Final consideration of positions would need to take into account the client's positions, export markets and the need for storage. If the products are transferred very quickly then a single distribution unit may be sufficient.
An additional benefit of a single production unit would be the possibility of implementing a robust quality control system to ensure satisfactory standards. There may be other factors involved in the matter of quality, which will be discussed later.
management structure
At present, the authority and decision-making is strongly centralized at headquarters, with Mr. Bart Lewis make all the decisions, and those decisions fall to the manager at production units. The flow of communication is very much in a downward direction, with purely appointed agents to carry out the directions of the Chief. The hierarchical principle derived from the theories of Bruno Lussato. The 'concept scale' considered an organization as a group of degrees, arranged in a sequence. higher grades made by the authority that could be delegated to the level immediately below. lower grades made no authority at all. Authority descended from the top down along a well-defined scale of all messages. In the current system by Lewis Jeans, little authority is delegated to all, with the managers of just over supervisors, passing down orders from above.
management styles
Lippitt & White are among the many researchers who have identified a variety of leadership styles. Strictly controlled (autocratic) leader alone makes the decisions, with the staff to be informed of these decisions and then carry out the task. Democratic (persuasive or consultative) The leader makes decisions, and then convince the workers that his decision was the right one. The leaders consult staff before making a decision. The leader has the final say, but takes into account the views of the staff. Laissez-faire (Loose) Opinions are not forced to personnel, without any formal structure for decision-making.
None of the above is the correct approach, but have different effects on those within the organization. The style of Lewis Jeans is autocratic in nature. This type of management style can have a negative effect on the cadres and workers. Managers can feel that they are not reliable or the power to manage their departments. The organization is oriented output, and this will certainly affect the motivation of all personnel. A supportive management style, as alleged are said to favor by Charles Handy: worker satisfaction. Lower turnover rates and complaint. Less inter-group conflicts.
With extremely high levels of staff turnover, the management style may have an important role in this area. Motivation is also significant and this will be discussed later in this report.
control spans
The time elapsed in an organization is important. General Sir Iain Hamilton said, "No brain can effectively control more than 6 or 7 other brains." It has been proven through research that the scope of control (number of subordinates that a person is directly responsible) should be 3-6.
At present Mr. Lewis currently controls sixteen managers, five in each of the factories and a manager centralized sales. Each factory has eleven directors and three supervisors. This is not an efficient allocation of power and authority. A person who has the responsibility every day for all areas of an organization, some of which may not be his area of expertise can create certain functions deficiencies. As the organization chart on page 4 shows, with a higher level of trust and professional powers, experienced management, the '' control 'arc could be greatly reduced for Mr. Lewis, but expanded to the lower level managers. This would allow Mr. Lewis to focus on decision-making 'strategic' organization within a centralized management team, while allowing lower-level managers to focus on the day-to-day production issues, distribution, sales and marketing. Regular management meetings allow for updates on the production, sales targets and organizational goals, which may change due to the dynamic nature of the apparel industry. An appropriate structure should include weekly or monthly targets communicated to managers in charge. daily communication as at present will increase managers' opinions that are not allowed to 'manage'. The communication flow will be up as well as down the chain of command, giving local managers and subordinates a role in decision making. Those in local structures will be able to provide quality feedback on stock exchange issues, the quality, the conservation problems, etc. In this way the management team to adjust their goals and objectives according to the latest available information. In addition to this, a well-organized system of recording and monitoring will ensure that all communications, orders, sales, returns and forecasts can be used as historical data to support future decisions.
Organizational culture
The structure of an organization is strongly influenced by the culture within it. A definition of culture is "the way we see and we do things around here." History, traditions and structure are influencing factors on the culture of a company. Behavior of new workers within an organization is often influenced by the "rules" of conduct already prevalent. The need to 'fit in' and being 'accepted' can often put pressure on individuals to conform. Culture can change over time of new people join the organization and change external factor.
Charles Handy behavior observed in a large number of organizations and described four main types of culture.
Culture Power
The centralization of power is the main factor of this type of organization. A person takes all the decisions. Individuals may feel suppressed by those in power. A 'Power' culture is evident within Lewis Jeans.
Culture Role
Typically found in large organizations divided into layers of offices and officials. Power is hierarchical and determined by the position of a person within the company. descriptions of rigorous and communications work prevail. Very little room for growth and personal development.
Task Culture
A job or project-oriented organization. The task forces how a team, not strict, established rules and regulations. The freedom and flexibility can make for a rewarding work environment. Due to the lack of formality, the management and control of a task culture can be difficult.
Culture person
An organization with a group of people, all working at the same level. The hierarchies can not be formed without mutual consent.
Changing a culture to meet the organization's goals is not easy. Some authors believe that culture is created by the people, and a manager can not change on a whim. It 'widely recognized that managers' actions can have a profound influence on the culture within an organization, far more than written statements about what should happen.
A move away from the 'cultural power' within Lewis Jeans could have profound effects on the behavior of workers. Empower managers to make decisions, to run their departments, and to build trust and a desire within the workforce, to be successful both for themselves and for the organization. A tighter control bow to the management team will force them to focus on the direction of the business and not be directly involved in the production complexity, distribution and marketing. Provide suitable facilities, quality managers, business systems, and motivation of the personnel needs are met, the CEO and his team need to be figurehead for the organization, that inspire confidence, loyalty and trust in all.
staff motivation
Lewis Jeans has developed a tendency for a rapid turnover of staff. Less than 50% were within the company for more than a year. This creates problems for the organization: the lack of qualified personnel. Low morale among the current staff. bad image in the wider community, where new employees can be. A lack of vision team. Little motivation to excel and be equal to the challenges facing the company.
Managers can only perform well and achieve the desired objectives if they have a team just as motivated to work with them.
To make a realistic analysis of workers in Lewis Jeans, you have to relate some research into motivation, and the lack of it.
Abraham Maslow
Maslow popularized the theory that people need. Maslow developed a 'hierarchy of needs' and concluded that, when the needs of an individual have been achieved at a level higher level of motivation would be developed. The levels from lowest to highest are: Physiological Needs Shelter & Security Love and belonging self actualization
When applied to the workplace can be seen that the work can provide a means of helping people to meet own needs. Not all have the same needs, so this must be taken into account.
Frederick Hertzberg
Hertzberg carried out research based on interviews to find out what satisfied and dissatisfied workers. He found a number with sectors that were a potential cause for dissatisfaction. He called these 'hygiene factors. Only when the hygiene factors were adequately met other factors may improve performance. These are called 'motivators'.
Considering the structure, management style, leadership and culture to Lewis Jeans, and then considering the factors mentioned above, the reason why staff retention becomes more clear is at low levels. The provision of financial rewards and incentives such can provide short-term solutions. And 'necessary to consider that these rewards, together with low levels of motivation within the company are the main factor affecting the poor quality of goods. The staff have little loyalty to the organization, and they can see that churn out large quantities of goods, regardless of the quality can cause useful additions to undertake packages. There is a wide range of needs and reasons for most of the personnel. If they feel used, undervalued, and have little chance of self improvement, then the motivation to perform suffer. Whether to leave the company, or working at levels that reduce the purely financial bonuses to achieve quality. These symptoms are all visible within the company.
However, it is also a basis for the design of strategies that will alleviate these problems. Motivating the workforce through empowerment, delegation, the recognition and the opportunity to improve themselves will promote a real change in the world of work.
Staff Appraisals
evaluation of the regular staff are an essential part of the development of human resources of a company. An annual meeting with each staff member allows both parties to highlight the areas in which the performance was good, and to look for trouble areas that may need some attention. It allows evaluated to highlight the development needs they may have; This could include training or aspirations for promotion. The appraiser must ensure that a fair and non-confrontational approach is adopted, and to make it clear that the meeting is for the benefit of both parties. Ideally, the appraiser and appraisee should have appropriate documents to record their opinion at least 2-3 weeks before the evaluation meeting. When the discussion takes place, a 'meeting of minds' should take place, with both parties agreed on a way forward for the next year. An adequate reference system to another manager should be in place in case agreement can not be reached. The process must be transparent and honest. The staff may become resentful of the evaluation system, if not covered by all of the facts surrounding the system.
Recommendations for change
Lewis Jeans was like running with the same organizational and management structure for about ten years. In recent times the performance has dropped and most of the problems were created by the same organization. This can be changed. Changes in the structure can be made rather quickly. Cultural change can take much longer. Strong leadership will play a key role in changing this culture. The following recommendations should be implemented as soon as possible in order to ensure that the change takes place. With a change of this kind, there will be a transition period, but the impetus for change must be immediate.
Initiate changes to a functional structure for the company. considerable planning will be required to implement changes in certain rooms and re-employment of staff. This may not be possible in some cases and decisions must be made. Layoffs may be inevitable, but it should be a last resort. There is no reason why the organization can not introduce more facilities to afford the best options for functional departments. As part of the Finance Department there is a need for formal structures due to the procedural systems that need to be taken. This would almost certainly put quite prescriptive definitions of what the staff should do. Within a production or distribution department there will be more space for the staff to show individual flair and quality of team-working. There is no longer an option for an informal structure of these departments. This does not imply that an autocratic management style is suitable for any department, but it demonstrates that the different organizational and managerial structures can co-exist within an organization.
Management and Leadership style has to change. A central management team decide on the aims and objectives. This should take into account input from all levels of the organization. A Council staff allowing employees to contribute to the success of Lewis Jeans undoubtedly motivate workers. Meetings with all management levels ensure that the operators feel of confidence and power to deal with its services, areas where their expertise lies.
The changes in management style will certainly affect the 'culture' within Lewis Jeans. The 'power of culture' that exists currently is harmful to the future success of the business. People determine the success or failure of this organization. A move towards a 'task culture' in which staff work in teams, where there is little need for an authoritarian management, in which people feel that they can succeed and develop, should be the aspiration of the company. There can still be a discipline within the culture, but it should be more oriented towards 'self-discipline', rather than autocracy.
The motivation of staff is to be a focal point. All the above recommendations will contribute to this. financial incentive, if delivered properly can to some extent motivate workers. There are many other factors involved. A share of the profits, rather than production bonuses will focus on personal success, rather than short-term individual gain. The need to ensure the quality of products, thus increasing the good reputation of Lewis Jeans will lead to success and higher profits. These successes, that the labor force will have played a direct role in, will lead to financial rewards and personal pride.
The communication between all sections must improve. Within this report we discussed different strategies to improve the inter-personal communication. There is also a need to communicate organizational plans corrected areas. The meetings Central Management team will be the strategy agreement. This should be a consultative process. And 'essential to draw on all areas of expertise within the organization. Consultations with key personnel and Crafts union officials / staff council members will assist cooperation. weekly group meetings allow concerns to pass the chain of command, if necessary. Senior managers need to communicate directly with the team leaders whenever possible. The phone should be in place a backup system. The use of electronic / video conference connection can be used for remote locations.
For growth to occur for Lewis Jeans, an overall assessment of the marketing strategy is to take place. The last ten years have allowed Lewis Jeans fall behind the current market leader, with regard to the diversification of product base. The days when a style of jeans fit everyone went. There must be a thorough assessment of current and future trends, and adopted a marketing strategy to reflect this. There may be a need for the project team to develop (this could draw on throughout the company) skills to create a radical marketing plan. This will need to take into account product development, advertising, distribution methods (mail order catalogs, sales based on the Internet, point of sale). New products must meet the needs of existing customers, but to guide the products in the 21st century.
The image of the product is important. Potential users need to feel that these products can make a fashion statement. A large-scale exercise in public relations must be used to change views between the relevant public. This may consist of press releases, product advertising, advertising to showcase this exciting brand. If the package it can be used to make significant product, to convey the brand image, and make it appeal to customers. Marketing, therefore, must be at the forefront of the strategy.
Conclusions
This report puts some demands on Lewis Jeans. There are no simple solutions to their current problems. However, the organization can turn its fortunes around if you accept this report as the first building block for the future success. There will be no room for ego in Lewis Jeans revitalized. Everyone must pull together to make this happen. The people are the strength within this organization, and its unique, dynamic, progressive team, success is certain.
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