Response To 1990s Financial Struggles: DSL Case Study Case Study

Length: 6 pages Sources: 6 Subject: Business - Management Type: Case Study Paper: #25953839 Related Topics: Managerial Economics, Financial Reporting, Financial Planning, Organisational Culture
Excerpt from Case Study :

¶ … 1990s Financial Struggles: DSL Case Study

It is vital to initiate a management-based approach compared to a resource-based one since a coherent inspired team will harness resources appropriately. From this approach, the 21st century organizations tend to benefit periodically from communication because most of them have a complex hierarchy. This is often ineffective when communication is not applied decisively. This report is based on 1995 Domestic Services Ltd. (DSL) corporate situation. The report will attempt to prove that DSL 1991 crash was not a resource-driven, but a deficiency in the nature of management affecting the entire organizational culture. The report will assess the organizational architecture structurally contributing to the current difficulties and improving them. Secondly, the report will examine the impetus behind Beyond Budgeting approach as compared to the normal financial controlling approach.

How DSL's organizational architecture is contributing to its current difficulties

After going through DSL's current organizational culture, one will notice that the DSL organizational central audit has identified tainted organizational culture because of unethical behavior. Ferrell (2014, p. 208) approach this analysis on what the text refers as a sluggish human resource development. According to Ferrell, leadership has a significant impact on the ethical decision making process because leaders have the power to motivate others. In Barlett's case, it is notable that regional managers (who happen to be most significant) are not properly motivated. Barlett on the other lacks significant form of leadership and this explains why he did not have substantial support regional managers. Dion (2012, pp. 20) Ferrel's opinion on what he considers as internal difficulties due to a failing organizational culture. Dion further assess the challenges in organizational culture as those, which fail to generate sufficient subsequent decision, which are vital in mitigating organizational challenges.

According to specific generated from the interviews, it is good to note that Barlets is also failing to generate significant support from the organizational spheres of management. This can be seconded by Dion (2012, pp. 22) who establishes failing spheres of delegation in establishing the prudent management framework. Some of the sad specifics are that the staff members refer to the top management as dictatorial. Besides, staff members argue against the prevailing organizational policies like the gaming process. Essentially, the gaming process is structurally engineered to ensure that staff members are ignited towards a collective formula of operations.

Technically, Barlets suffers from capital problems from top management trickling down to other spheres down to the staff. For instance, it is indisputable to expect that the regional manager is willing to take up a job in a rivaling company at a much lower cost. Seconding this is that that some staff members are willing to stretch out to cleaning jobs to increase their revenue. In encapsulation, the organizational architecture is failing on its principality of roles and processes. As a result, poor organizational culture is not mounting up in quality decisions, rewards and performance evaluation.

Alternative organizational architecture

In a close analysis of the interview, it is notable that the deficiencies in organizational culture are technically responsible for the failing levels of leadership. In this regard, there is a derived necessity to establish a coherent organizational mechanism. Technically, a good organizational architecture is one that enable the art framework (an aspect of the organization, for example, ethical) to illuminate on a predetermined scientific approach. In the design, organizational architecture should appreciate the finite role of members from the top to the bottom (Brickley, 2007). Therefore, organizational architecture is a highly productive in respect to the creative process. Martlew (2004, p. 26) seconded by Brickley (2007) suggest the application of analogous principles as those which adhere to soundness, cultural empathy, durability and the comfort of the inhabitants. The principle approach in this strategy is technically centered on applying several principles (purpose) and execution (delivery, innovation), and performance.

Essentially, these architectural principles are complex and their complexities explain their results. Peltonen (2012, pp. 70) joins in the list of suggestions on what he prefers as a client driven approach. In a research conducted by Peltonen et al., (2012), it is a clear that the market demand is technically responsible for the creation of undoubtedly organizational results through the increased organizational demand. Chief of the problems experienced in Barlets is the redundancy. Redundancy...


173) organizational structure must integrate separate product lines, organizational units and managerial approaches which seek to build hierarchies while eliminating capital redundancies. In other words, it is an inherent responsibility for the top managers to contain redundancy by improving the workflow. Callahan (2011) suggests that a potential client's organizational structure should endeavor to drill a little more deeply into the nature of human resources policies. In fact, the signs of good organizational culture should seek enable communication messages to ensure that employees understand the logic behind an organizational and this will facilitate the development of integrity, competency and ethical behavior. For instance, employees prefer to pursue individual cleaning activities. In response to this, it could be effective if employees considered merging their operations to the mainstream operations of the firm (Langfield-Smith, 2012).

Although these decisions appear prudent and applicable, it is good to note that achieving organizational culture should begin from the top and technicalities illuminated to the junior spheres of the organization. Finkelstein (2011, pp. 26-28) argues in this relation that a shift in hierarchy culture produces a sense of apprehension. Practically, abandoning expensive cultures should be instrumental in ensuring that the efficiency and marketing are skilled to match closely with shifting culture. Gamage (2006, p. 26) argues that climate and e culture are largely learned through socialization process and through the symbolic interaction among members. Secondly, culture and climate are monolithic constructs that seek to appreciate multidimensional ones. Therefore, in apprehension, organizational climate is technically responsible for building culture and subcultures. Thirdly, culture and climate are responsible in identifying the environmental effects of people in the organization.

Now based on this, it is good to note that organizational climate is Lewinian concept that emphasizes the impact of social context on the members of the organization. In Lewinian concept, it is knowledgeable that the situation and contextual factors are technically responsible in influencing an individual behavior. In seeking solutions to the DSL problems, Lewinian approach will seek to apply equation of B= f (P, E) which assess that behavior of regional managers and staff members can only be rectified by improving the environment at which they are in. To achieve this, DSL's executive council must develop policies and procedures that are indicative of a rectifying approach. In fact, there is a derived need for abstraction and thus capture additional influences either covertly or overtly.

Beyond Budgeting

Libby (2010, pp. 57) seconds Abrahamsson's (2010) definition of Beyond Budgeting. Ideally, the two holds the view that beyond budgeting is about rethinking how to manage the organization in a postindustrial world where innovative management models represent sustainable to initiate a lucid competitive strategy. Technically, BB is about transferring responsibility and power from the center to the front line units, and inversely integrating employees first, and customer seconds and the hierarchy third.

For DSL, implementing changes requires the proper operation of (Beyond Budgeting Round Table) BBRT is an independent international research and the development of the learning collaborative. As we have just realized, DSL is just recovering from the recent 1990 competition. Consequently, managers met at a seaside resort to establishing a profit plan for the regions. Now, focusing on profits seems a decisive strategy; however, it should be noted that BBRT is only significant in team building (Langfield-Smith, 2012). Repeatedly, there is a necessity to ensure that the organization meets structural requirements of team building. Abrahamsson et al., (2010) quotes the Lean & Agile principles as commonalities in developing a BB approach. In fact, according to Andy et al., (2003, pp. 27) DSL can only realize its full potential if it is in a position to integrate the BB approaches in its core organization architecture plan.

As identified, there is a structural breakdown in the degrees of communication, which technically affects the beyond budgeting process. Dugdale (2010, p. xiv) suggests the adoption of N-form organization to replace M-form organization. N-form stands for Networked organization while M-form stands for multidimensional organization. DSL in any case is a multidimensional organization, each region or individuals are pursuing individual goals. This approach is not collective since it does not promote multiple linkages in the organization's managers; therefore, M-form should be dropped to ensure that there is an introduction of quality communication in the organization top management. As a result, regional managers would be based on the relative performance measures vs. competition and not on performance related to the budget, but on communication (Interview with Lennart Francke, 2003).

Based on the BB strategy, it is coherent to assess the impacts that BB instigates on the budgeting…

Sources Used in Documents:


Abrahamsson, P., & Oza, N. (2010). Lean enterprise software and systems: First international conference, LESS 2010, Helsinki, Finland, October 17-20, 2010: proceedings. Berlin: Springer.

Andy, N., Bourne, M., & Adams, C., (2003). Better budgeting or beyond budgeting? Measuring Business Excellence, 7 (3), 22-28.

An Australian Perspective 6e. McGraw Hill, Chapter 9. (Chapter 5 in the AYB321 compositetext

Brickley, C. Smith and J. Zimmerman (2007). Managerial Economics and Organizational Architecture, fifth edition, Irwin, McGraw-Hill, Chapter 11. (Chapter 4 in the AYB321 composite text.

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