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The Wallace Group: Problems and Recommendations

Read "The Wallace Group," Case in the attachment and answer the following questions.

1. What is the most important problem facing the Wallace Group?

2. What recommendation(s) would you make to Mr. Wallace, and in what order of priorities?

3. How do you educate a manager to manage an organization as it evolves over time from an entrepreneurial structure to a more sophisticated and complex organizational structure?

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Please see response attached, as well as two relevant documents. I hope this helps and take care.

RESPONSE:

1. What is the most important problem facing the Wallace Group?

I agree with Wallace, that the problem facing the Wallace Group revolves around how the company manages people. "It's a personnel problem". (Wallace). This is reflected by a number of people interviewed. "Being head of human resources around here is a tough job. We don't act. We react." (Campbell). However, these problems are rooted in management and organization style and how Wallace rules with an "iron fist."

So the most important problem facing Wallace Group is that of increasing employee morale by making the corporate structure reflect a more employee-centered style, a more flattened structure - by letting the employees have a say in the decision-making process (i.e., team approach) and this would help to increase the morale of the employees. It would stop the type of organizational "paralyses" that one of the worker talks about. Therefore the corporate structure needs to be flattened (see http://www.csuchico.edu/mgmt/strategy/module9/tsld058.htm) and Wallace will need to learn the importance of team and group work, giving up his traditional managerial style, that of "control" to a more egalitarian transformative style of leadership. However, communicating this team approach to Wallace may be no easy chore. Wallace Group will be required to introduce strategic restructuring as demonstrated in the diagram below: (see in attached response).

2. What recommendation(s) would you make to Mr. Wallace, and in what order of priorities?

Strategically reengineer the organizational structure (see http://www.csuchico.edu/mgmt/strategy/module9/index.htm and the steps above).
- Create a strong employee- customer centered management team by introducing a team approach by forming groups and having the employees involved in the decision making process (i.e., flattened structure).
- Develop a management development program for the employees who need extra training in their new job positions to deal with the stress related to new positions that the employees are not fully trained for.
Organizational structural changes come first, and then the following can be considered (based on the input of the employees):
- Revisit position entrance requirements to attract high quality employees.
- Increase pay scales for engineering positions and lower the job specs and find new ways recruiting channels.
- Develop Groups/Marketing/Sales function to lead the company in business expansion effort.
- Integrate marketing planning efforts between our group and Corporate. This is especially true if the Wallace group is to successfully grow in nondefense oriented markets and products.

Consider the following information by clicking on the links below: (hyperlinked in the attached response)
Slide Index
Slide 1: INTRODUCTORY GRAPHIC
Slide 2: MODULE OUTLINE
Slide 3: NATURE OF THE STRATEGY IMPLEMENTATION TASK
Slide 4: THE STRATEGY IMPLEMENTER'S TASK
Slide 5: WHY IMPLEMENTING STRATEGY IS A TOUGH MANAGEMENT JOB
Slide 6: WHY IMPLEMENTING STRATEGY IS A TOUGH MANAGEMENT JOB
Slide 7: CHARACTERISTICS OF STRATEGY IMPLEMENTATION PROCESS
Slide 8: CHARACTERISTICS OF STRATEGY IMPLEMENTATION PROCESS
Slide 9: WHAT IS THE GOAL OF STRATEGY IMPLEMENTATION?
Slide 10: WHO ARE THE STRATEGY IMPLEMENTERS?
Slide 11: STRATEGIC MANAGEMENT PRINCIPLE
Slide 12: EIGHT MANAGERIAL COMPONENTS OF IMPLEMENTING STRATEGY
Slide 13: PRINCIPAL TASKS OF STRATEGY IMPLEMENTATION
Slide 14: PRINCIPAL TASKS OF STRATEGY IMPLEMENTATION
Slide 15: WAYS TO LEAD IMPLEMENTATION PROCESS
Slide 16: FACTORS INFLUENCING MANAGER IN LEADING IMPLEMENTATION PROCESS
Slide 17: BUILDING A CAPABLE ORGANIZATION
Slide 18: SELECTING PEOPLE FOR KEY POSITIONS
Slide 19: SELECTING PEOPLE FOR KEY POSITIONS
Slide 20: BUILDING A CORE COMPETENCE
Slide 21: BUILDING A CORE COMPETENCE
Slide 22: EXAMPLES OF CORE COMPETENCIES
Slide 23: EXAMPLES OF CORE COMPETENCIES
Slide 24: CREATING A CORE COMPETENCE
Slide 25: CREATING A CORE COMPETENCE
Slide 26: VALUE & POWER OF A CORE COMPETENCE
Slide 27: STRATEGIC ROLE OF TRAINING & RETRAINING
Slide 28: MATCHING ORGANIZATION STRUCTURE TO STRATEGY
Slide 29: MATCHING ORGANIZATION STRUCTURE TO STRATEGY
Slide 30: PINPOINTING STRATEGY- ...

Solution Summary

Based on a case scenario, this solution describes the most important problem facing the Wallace Group, and provides recommendation(s) according to priority. It also explains how to educate a manager to manage an organization as it evolves over time from an entrepreneurial structure to a more sophisticated and complex organizational structure. Supplemented with two highly informative articles.

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