Summary of the Case Study: The Dashman Company is large concern having 20 plants located in the central part of US, which makes many type of equipment for the armed forces. All 20 plants were working as a separate independent unit.
In an effort to avoid the anticipated shortfall of certain essential raw materials required by the plants, Mr. Post was appointed as VP-Purchase to coordinate the purchasing activity by the President, Mr. Manson. Mr. Larson who was very experienced with this respect to this organization was appointed as assistant to Mr. Post.
Post decides to centralize a part of the system by announcing through letters to the purchase executives that all the purchases above $10000 should be cleared with the head office and that he is notified about contracts that are being negotiated at least 1 week in advance.
The plant managers express support and co-ordination but the head office doesn’t receive any notice from any plant in this period.
Characters in Organization:
The Company President: Mr. Manson
Newly Appointed Vice President – Purchase: Mr. Post
Assistant to Vice President-Purchase: Mr. Larson
Question 1: What are the human behaviors and organizational issues highlighted by the case?
Resistance to Change: Long standing organizational structure disrupted with purchase centralization; hence strong resistance for the same by the plant purchase executives.
Superiority: Mr. Post who was newly appointed wanted to make his presence felt eagerly, by just changing the existing process without evaluating and involving purchase executives (subordinate) & respective plant heads (peers).
Mr. Post found to be interested in taking only authority by virtue of implementing new policies. Mr. Post didn’t visit plant despite of his experienced assistant advice and went ahead to sends letters directly to purchase executives without intimating plant...
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