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Milinder Recycling Company and Organizational Growth Issues

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The Milinder Recycling Company has experienced significant growth over the past two years. Due to this growth, the company is currently encountering problems in the following areas:

1. Especially among new hires, there is an extremely high turnover rate.
2. People who have worked for the company for short periods of time (sometimes only a few months) have been promoted to management positions. Several of these new managers lack sufficient management experience. This has led to poor leadership and weak communication between employees and managers.
3. The IT infrastructure, especially the personnel and inventory databases, is no longer adequate for the new size of the company.
4. The company has taken on substantial debt in order to expand to new markets, but several of the new markets have been very slow. It now seems questionable whether some of these new markets will ever be successful enough to justify the amount of debt.

Select one of these issues and briefly discuss two different options for addressing the problem.

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Hi,

Interesting scenario! Let's take a closer look.

RESPONSE:

PROBLEM: People who have worked for the company for short periods of time (sometimes only a few months) have been promoted to management positions. Several of these new managers lack sufficient management experience. This has led to poor leadership and weak communication between employees and managers.

The following two strategies are about people management for addressing the above problem:

1. Use Transformational Leadership style

Like most companies, Milander Recycling Company's most important, and most difficult, job is to manage people. In people management, the manager must lead, motivate, inspire, and encourage them. Sometimes the manager will have to hire, fire, discipline or evaluate employees. In other words, people management is about leading, motivating and encouraging employees. It is also about hiring, firing, disciplining and evaluating them. For articles and links of best ways to handle these people management issues see http://management.about.com/od/people/.

Transformative leadership is the power behind delivering significant performance improvement. Since most organizations today are under tremendous financial pressure, dramatic improvements demand more than incremental change, yet many managers lag behind as "incremental leaders." It seems that this is the problem for the Milinder ...

Solution Summary

In reference to the reported issues experienced by the Milinder Recycling Company, this solution selects one of these issues and briefly discusses two different options for addressing the problem.

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