The management needs to have the “ability to organise and manage its staff”. Currently it holds a ‘relaxed’ atmosphere, with wife of Lex having been left many of the operational tasks and decisions of Lifestyle. With the implementation of a new system, this will always cause disruption to staff, because changes in patterns of working will occur. The change involved in the introduction of the new system needs management so staff of 15 motivation and productivity are not adversely affected. Schein (1992) (Schein, E., 1992. Organizational Culture and leadership. Jossey Bass: San Francisco) concluded that three variables are critical to the success of any orgainisational change:
1. the degree to which the leaders can break from previous ways of working;
2. the significance and comprehensiveness of the change;
3. the extent to which the head of the organisation is actively involved in the change process.
Newage need to consider a form of organisation which is “better grouped and new activities envisaged”
The organisational structure in the “Lifestyle” and “Outback” division shows to be unstable from the development into e-commerce, “the development into e-commerce suggests that this organisational form an no longer be considered practical”. There is little relationship with individuals, no account of who is in charge, also who has authority to make decisions and how information is communicated. It sounds like it more of an independent structure with a lack of control and co-ordination. With the extensive growth, “Lifestyle” Division became ‘unpractical’ causing it to become decentralised, meaning subordinates would have authority to taking decisions. The main concern is that as the business grows, it is slowly moving away from an entrepreneurial structure towards one where authority is passed to other employees.
As a solution, Newage need to adopt a democratic managerial style, this will...