Introduction
Many new companies always experience a slow start, but after some time, they enjoy a period of rapid growth. The growth is attributed to acquiring more customers and increasing profit levels. Torn between maintaining their products’ quality and expanding the product volume, the companies are left in difficult situations. Similarly, increased growth can result in conflict and poor management, as with the Columbia Corporation. Thus, the main goal of this Case Study is to analyze what mistakes the company’s CEO and other executives made and find options for solving these issues.
Analysis and Issues to be Resolved
The first problem ailing the company is the centralization of authority. Matt Walsh is a strict manager whose final decision is applied in the company. While centralization can have its advantages, it fantastically fails in the case of a growing company. In my opinion, a company like Columbia Corporation requires the decentralization of control so that different views can prevail. Centralization of company management leads to decreased production rates and worsens communication and interaction between employees of the organization. In addition, special attention should be paid to the leadership style chosen by the company’s CEO. A good leader must be “able to inspire and prioritize needs, which in turn produces a sense of safety and calm for followers” (Gandolfi & Stone, 2018, p. 263). Instead, the CEO’s chosen behavior strategy creates unhealthy competition and mistrust between the company’s departments.
One example could be that Matt Walsh talks to VPs from different directions in isolation. It leads to the deterioration of communication between departments and, as a result, the inability to solve urgent problems and the decline of the company’s profitability. For example, the production vice president claims that quality problems are caused by many changes in product engineering that the engineering department handles. The problem is exacerbated because the engineering department fails to inform the production manager about the changes made in time enough to make necessary adjustments to the production line. Moreover, the Engineering and Sales department accuses the production vice president of failing to feature particular requirements from essential clients.
All these cases demonstrate poor communication in the company, essentially the result of the CEO’s actions. As Newman and Goode (2019) point out, interpersonal communication in the workplace contributes to a safe and comfortable work environment. The task of the management of the organization is not only to supervise the performance of work tasks but also to encourage and comprehensively support employees.
Thus, the analysis of the situation shows that Matt Walsh, as the organization’s leader, made significant mistakes in the company’s management. The strategic decisions made regarding communication and company structure led to the emergence of problems in all departments of Columbia Corporation. However, the situation in the company can still be corrected by changing the management approach and paying attention to developing employee teamwork skills.
Recommended Solutions
The first advice a management consultant can give Walsh is the decentralization of company management. Giving VPs more extraordinary powers will benefit the company significantly because “under decentralization, all members can act more quickly to make a decisions and solve problems and control the situation” (Darvishmotevali, 2019, p. 33). When a CEO always makes the final decision, as with Columbia Corporation, other employees (vice presidents of the company) feel they are excluded from decision-making, even in areas where they can offer the best decisions. For instance, the sales vice president is disappointed that the accounting vice president formulated a policy that makes it difficult for customers to buy goods via credit. The decision to tighten the issuance of credit was made without her knowledge.
One of the options for solving the problem can be creating cross-functional teams to work on projects or solve urgent issues. “Working on a cross-functional team helps members learn to view a problem or challenge from different perspectives, rather than from only a narrow functional viewpoint” (Yukl & Gardner, 2020, p. 293). In addition, this option of interaction between different departments will contribute to a better understanding of each other’s needs and reduce the number of conflicts and misunderstandings. In the future, it is also possible to introduce self-managed teams, although transitioning to this form of organization may be difficult. Self-managed teams have expanded capabilities and responsibilities, which can help automate production and sales processes.
At the same time, Walsh should work on his interpersonal skills. Yukl and Gardner (2020) note that a good leader “must be able to understand the needs and values of team members, influence them, resolve conflicts, and build cohesiveness” (p. 294). In addition, the leader should encourage his employees, conduct team-building activities and facilitate communication between departments. At the same time, as Angana (2021) points out, it is important not to cross the line and remain an authoritative leader. This task may seem complicated, but solving the problem of poor communication in the team will positively affect the company’s work.
Justification
Columbia Corporation’s rigid decision-making, where the CEO is the ultimate decision maker, harms the company more. However, researches show that when all the other executive members are involved in the eventual decision-making process, the company can make better decisions and policies that can prepare it for more success. From the case description, it is clear that the main problem of Columbia Corporation is the lack of proper communication between the CEO and other executives. Yukl and Gardener (2020) claim that employees cannot be sufficiently committed to the company if they experience a high level of mistrust and competition. Holding joint meetings for the CEO and VP could be the beginning of solving this problem.
In addition, giving other executives sufficient authority to make decisions within their departments is also essential. In this way, the time needed to make a decision is reduced; accordingly, the client can receive an answer to his issues faster. Moreover, if Walsh officially gives all VPs the same opportunities and responsibilities, it will help reduce competition.
Conclusion
Companies characterized by lousy decision-making and poor communication are likely to see negative growth trends or even closure when the problems are not addressed in time. Columbia Corporation personifies a company in that state. However, Columbia Corporation has a chance to employ new tactics that can aid the company in keeping pace with its level of growth. Some solutions to the problem include improving communication and encouraging diverse decision-making. The solution of issues that have arisen in the company is possible, but it requires a sufficient amount of time to implement changes. Provided that the management of the company adheres to the recommendations of the consultant, it will be possible to eliminate existing problems and avoid the emergence of new ones in the future.
References List
Angana, G. A. (2021). Sustaining Credible Leadership in Organizations. Journal of Human Resource & Leadership, 5(3), 86-95. Web.
Darvishmotevali, M. (2019). Decentralization and innovative behavior: The moderating role of supervisor support. International Journal of Organizational Leadership, 8, 31-45.
Gandolfi, F., & Stone, S. (2018). Leadership, leadership styles, and servant leadership. Journal of Management Research, 18(4), 261-269.
Newman, S., & Goode, N. (2019). Communication in the workplace: Defining the conversations of supervisors. Journal of Safety Research, 70, 19-23. Web.
Wong, A., Wang, X., Wang, X., & Tjosvold, D. (2019). Ethical leaders manage conflict to develop trust. Leadership & Organization Development Journal, 41(1), 133-146. Web.
Yukl, G. A., & Gardner, W. L. (2020). Leadership in organizations (Ninth edition, Global edition.). Pearson Education Limited.