Management authority and decision-making at E.G. Lomax company

¶ … dropping out of Castle Co. As E.G. Lomax company's supplier without the authority from the general manager. The action of dropping Castle Co. As the vendor by the management team due to its unsatisfactory service without asking for the general manager's approval was negatively taken by the general manager. With this, other resulting issues may be the following:

The validity and reasonableness of the management team's action coming up with a decision without the general manager's approval.

The validity and reasonableness of the manager's action of reversing the management team's decision.

How to Handle the Matter as a Manager

Managers are placed in managerial role because they should have the capability of arriving at decisions that give equal importance to his people, his company, his customers and clients, and to everyone related to the company's operation. In the case of E.G. Lomax's general manager, he should be able to weigh the reasons why the management team arrived at their decision as well as why they should not do such action. An initial meeting with the management team to study the causes and consequences of the action they took would be helpful in maintaining good work relationship between the manager and his team. For any positive or negative consequences done by the management team, resolutions should be set within that meeting. This is because it can be technically considered that dropping out of Castle Co. As E.G. Lomax's supplier is invalid since there was no approval from the higher management. The next action that the manager should do is to have a meeting with the Castle Co. company for any resolutions set by E.G. Lomax regarding the situation.

The Leadership Style Displayed by the General Manager

E.G. Lomax's general manager displayed a strict leadership style. Being the manager, he uphold the common concept about the role of a manager. That is, to have the authority on every decision made in the organization. However, the general manager also displayed a strong quality of a leader which is the ability to stand for the policy of his organization. Moreover, giving Castle Co. few more months is perhaps a way of giving their supplier the chance to make up for their unsatisfactory services.

Other Information Needed to Diagnose the Scenario

To assess whether the actions taken by the management team is proper or improper, as well as to assess whether the leadership style displayed by the general manager is reasonable, the following information will be helpful.

The extent of the unsatisfactory service of Castle Co.

The advantages and disadvantages to E.G. Lomax if the management team will not take an immediate action and wait for the general manager's decision.

How urgent does Lomax need to obtain a new supplier, thus causing them to drop Castle Co.

Organization System of Lomax

Based on how the management team was able to drop Castle Co. even without the approval of the general manager, it can be said that the organization implements an open system. There may be no defined policy that prohibits the management team from arriving at a decision and taking an action, thus they were able to drop their supplier. However, based on the action taken by the general manager after knowing the event, and depending on the rationales he may have on reversing the decision of the management team, the general manager may be implementing either an open or closed system.

Reference

Clear Communication is Key to Positive Work Environment.

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