C and C stores case study
Airiest is a company which produces, refurbishes and renovates spare parts for previously owned aircrafts. Since the unexpected death of the founder a few years back it has been facing many challenges and unanticipated changes. One of the main challenges now facing Airiest is the intense competition from similar companies in the industry which offer analogous services such as General Electric and Pratt & Whitney. The company has always maintained a good reputation for its excellent quality, safety and customer service but due to globalization it feels it in now under siege.
There is also a lack of responsiveness in the company which means that when they are faced with a problem a lot of time is wasted in communicating and reaching an adequate decision which makes everything chaotic and disorganized. Moreover, there seems to be a lack of ethics and social responsibility amongst the employees of Airiest. There have been many disagreements between the vice president and controller, and replication of work Just to outfox each other and prove that their idea was better and more successful.
Some employees have also refused to follow their Job description which is making the work environment frenzied. An open system is a system which continuously interacts with its surrounding environment. It must adapt to whatever situation they are faced with and cannot seal themselves off.
Most successful companies function as an open system because it allows them to acquire the needed resources, adjust to outside threats, take advantage of opportunities and control the internal environment while maintaining a Untactful eye on unexpected changes in the external environment.
Airiest is an example of an open system because the company was attacked by unforeseen internal changes as well as outside threats from other competing companies. However, it adapted itself to these changes by trying to take advantage of any opportunities in the market by for example considering potential exports, imports, more research and additional repair lines.
They also endeavored in taking control of their internal environment by re-determining the goals and policies of the company, decide on the tasks to be done, divide the tasks into a comprehensible structure, determine suitable employees to occupy positions within the organization as well as define their responsibilities, and aim to minimize the number and types of level of authority. Airiest is currently working with Roy Morgan, the president and his vice presidents representing the top management and senior managers whom represent the middle management.
They are working informally, having somehow unclear and messed up structure or organization and not really following the “principles of good organization”. To improve the current situation, they need to return to the previous level of efficiency and maintain a high level of effectiveness, the production department employees (representing the technical core) who carry out the basic work of organization need to be recognized and given clearly defined tasks from their managers/supervisors who are considered the focal point of communication that ease the flow of information, instructions and etc. From the top management.
Airiest needs personnel working as technical support specialists whom should b responsible for examining the business environment to know problems rather than leaving it open for anyone to deal with them as they arise, discover opportunities and carry out developments. As well as an administrative support whose Job is to deal Ninth all issues concerning employees and providing better working conditions to increase their satisfaction and productivity. Applying the organizational configuration del can avoid having the current mistakes in decisions, overlapping responsibilities and working desired Job descriptions.
Airiest is facing problems because of the lack of focus on its stakeholders. According to the stakeholders approach, the organization should be focusing on: Employees: Define each person’s Job so that it would be productive, effective and efficient for the whole organization. O Solving conflicts between the employees. The employees should be united on the vision and the objectives of the company. They should be aligned with how Airiest will get through its downfall.
Customers: Airiest should retain and maintain its reputation for providing ultimate quality, safety and customer service for its customers. It should be up-to-date with the market requirements. Owners and Stockholders: They should seek the utmost benefit for the whole organization. O They should be the support function for the organization. They should know their employees and how to work with them and use them.
Suppliers: Airiest should know its requirements that it will need for its end products. O Maintain good relations with its supply network. Approach the suppliers when there is a need for resources to avoid overstock. Management: It should all work as one body for the welfare of the company. Should have a strategy on how to manage the crisis.
Ensure the performance of its employees. An organization’s structure is made up of six components formalization, specialization, hierarchy of authority, centralization, professionalism, personnel ratios. Air star lacks structure and in order to have a solid structure it needs to apply those six components. First Airiest needs formalization meaning that a clear set of rules and regulations have to be set and one of these rules should be how important is for employees to respect their Job description and do their Job accordingly.
Secondly there has to be specialization in Airiest where each Job is divided into small tasks and each task is assigned to an employee.
Third is the Hierarchy of authority, Airiest had to possess an excellent channel of communication all the way from the top level down to the other levels. Fourth is the centralization where the organization possesses managers in the top level who are able to take strategic decisions. Fifth is professionalism Airiest has to possess a level of professionalism where there is high level of formal education and training of employees.