This officer carries a lot of responsibilities, which can be delegated to other officers to improve efficiency. Senior management feels that the Purchasing Manager is a good buyer but poor manager. In the opinion of the top executives, purchasing management involves managing the department’s personnel (there is a high turnover rate among the buyers) as well as deciding on the product policy (the mix of items to be offered in shelving spaces, presentation, etc.). The company realizes that its current buyers have probably not kept up with the items. Making good purchases at good prices is no longer the company’s sole differential advantage. Still, this is basically what the buyers know how to do well. However, this could end up demoralizing the Purchasing Manager, which would highly influence his output (Capstone, 2003).
Organization and Infomation Systems Management, which is a newly created department and whose primary task is to computerize the warehouse, consists of only two computer specialists; this department is underdeveloped and needs to be upgraded.
The procedure for recruitment of company executives is not well defined as well as their dismissal from job. The terms and conditions of work have not been clearly stated for their employment.
The challenges facing Ferretera Joaquin Candel can be solved if the organization makes the following changes:
The Chief Executive Officer’s role needs to be redefined. The Chief Executive Officer should be the general overseers of the company’s activities and transactions rather than the actual person to do the job. This can be achieved if he delegates some responsibilities to various departmental officers. For instance, the dealings with banks and other sources of financing as well as business with the representatives of superstores should be delegated to the managing director or other middle level managers (Capstone, 2003).
Senior management needs to change some of its perspectives about other junior officials. Instead, the senior management needs to motivate its staff by holding them in high regard so as to boost their morale. This would in turn impact on their output and create a better working environment for the organization (Zaleznik, 1977).
The newly created department of organization and information systems management, whose primary task is to computerize the warehouse, needs to be improved and upgraded. The management needs to employ more skilled personnel to the department. Besides, the already employed staff in the department needs to be frequently updated on latest developments in the technological field. The department also needs to adapt to the decentralized operations of the company (Zaleznik, 1977).
The procedure for recruitment of company executives needs to be revised and well defineed, as well as their dismissal from job. The terms and conditions of work have to be clearly explained to the employees before they take up the job. By agreeing to take up the job, the newly recruited executives will be bound to the company’s terms and conditions of work (Capstone, 2003).
However, the recruitment process needs to be more competitive in order to get the best qualified persons for the job. Once employed, the executives need to sign performance contracts, and their work should be regularly evaluated. Underperforming executives need to be fired. However, performing executives need to be retained within the organization so as to continue developing the company and create a good working organization culture (Zaleznik, 1977).
The organization also needs to do executives coaching to improve their skills. They should embrace new technological improvements. The company must realize the need to include more sophisticated equipment and exploit new avenues such as e-commerce or online marketing in advertisements (Capstone, 2003).
In conclusion, the consultants’ role in the organization is solely to provide consultancy services to the company. That is to say that the consultant advises senior management appropriately on matters pertaining to their corporate decisions. These include supervisory services as well as advisory to various organs of the company from the senior management to the departments.