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Customer Service for the Superior Widget Corporation

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Scenario:

You have been hired as the department manager for Customer Service for the Superior Widget Corporation (SWC). SWC is a young organization (two years old), and is experiencing rapid growth pains. The CEO has determined that the Sales department, which had been responsible for sales and customer service, is heavily sales oriented to the detriment of customer service. To maintain SWC's rapid sales growth and ensure a standardized approach to addressing customer feedback and concerns, the CEO centralized the Customer Service Department. It is no longer merely a team within each sales region. The CEO implemented this change quickly, without feedback from affected departments. This change resulted in a number of positions being eliminated or downgraded within the regional sales departments, creating anxiety and strained relations within some parts of the organization. On the other hand, some departments have welcomed the change, and have expectations of improved communication and teamwork with the new Customer Service Department. In addition to this, you are also responsible for working in a matrixed style with other business units. You have regular meetings with the other SWC Department Managers to address and act upon cross-functional issues (e.g. customer order processing, resolving customer complaints in conjunction with the shipping division). You need to quickly assess your new organization and department and determine a plan of action.

Assignment

Reflect upon the CEO's decision to create a centralized Customer Service Department from two differing perspectives of the CEO and the perspective of the demoted workers. Discuss this decision using the concept of organizational justice. Use what you know about SWC and your previous projects to enhance your discussion.

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Solution Summary

This solution is comprised of a detailed explanation to reflect upon the CEO's decision to create a centralized Customer Service Department from two differing perspectives of the CEO and the perspective of the demoted workers and discuss this decision using the concept of organizational justice.

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The CEO's decision to create a centralized Customer Service Department is a correct decision. As a CEO of the company, it is his responsibility to keep up the performance of the young organization and try to solve or prevent any future problems. The CEO has determined that the Sales Department, which had been responsible for sales and customer service, is heavily sales oriented. With lower concern on customer feedback and other customer service services, the CEO foresee that there could be the problem in which the customers might complain and switch to the competitors. Therefore, it is necessary for the CEO to centralize the Customer Service Department.

Under the perspective of the demoted workers, they will feel regret and do not understand the CEO's decision. They will blame the CEO, who is in charge of the action, for making the decision without ...

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