Introduction
Companies constantly face many difficulties in the decision-making process, especially when determining the future vector of the development. Phone System Inc. strives to increase its profit by opening the facility in India and the old one in America, but faces several problems trying to manage all the details. Therefore, the paper aims to measure the performance and analyze the proposed solution to the problem and its effectiveness.
Measuring Performance
From the SIPOC analysis, certain variables will help get the data for the further evaluation of the issue. The board of directors of Phone System Inc. is a supplier that is primarily involved in the process and makes critical decisions regarding the conflict (Klumbyte et al., 2020). The inputs are the financial resources needed to open the facility in India since there is an urgency for the funding. To achieve this, the process includes closing one of the branches in the United States to have the money and invest them into the building of the Indian filiation (Brown, 2019). As an output, the corporation will have a facility in India that will supposedly generate decent profit compared to the American branches. Thus, Phone System Inc. is the customer that gains the new facility that has the potential to increase the company’s profit.
Several steps are necessary to successfully collect and evaluate the data on the identified variables. Each site has its significant features, but one of them should be sacrificed to get the funding for the Indian filiation. Therefore, each facility must be analyzed from cultural, financial, historical, and productive viewpoints. It is important to identify which facility makes more profit, carries the cultural significance of the brand, and has the highest rates of job performance and satisfaction.
The variables from the Ishikawa diagram are the critical factors in developing the corrective changes. For instance, the company cannot close the Syracuse facility because this is a huge part of the history and the culture of the Phone System Inc. Financial costs are another obstacle that might prevent the board of directors from closing certain branches even though it may be the smallest facility like Minneapolis. The department’s profit also needs to be considered because if this is a stable source of income, then it would not be reasonable to choose it for closing. Finally, eliminating the facility and the great diversity of employees may be considered unethical by the public and cause damage to the corporation’s management. That is why effective leadership should exist inside the framework to navigate it and minimize the number of incidents properly.
Analysis
The root causes of the conflict are poor management and lack of quality leadership. Since addressing difficult conversations and written communication received low scores in the measure gap analysis it is evident that the dialogue between the parties was ineffective. In the first place, opening the firm in India seems rather unthoughtful due to the limited financial resources, which led to the closing of one of the branches (Sayyadi, 2019). Moreover, opening the new facility overseas for profit and neglecting the needs and well-being of the current employees is not the most effective tactic.
It may ruin the trust in the company and cause speculation about the irresponsibility of the higher management. It is also important to mention that because of the absence of quality leadership, all those aspects were not considered from the beginning, and now several complications need to be solved (Management & Anwar, 2021). Consequently, the proposed solution would be to close the Tampa filial and redistribute the employees by offering them a promotion inside the company.
Since the branch is still relatively new and is not recognized yet for any excellent work performance, it is reasonable to choose it for closing. The main goal is to get enough money to cover the expenses, and although the organization might lose the recognition for diversity in the workplace, it will get funding for the Indian facility.
Suppose this case was a real situation, then there would be certain questions to ask the stakeholders to clarify the probable root causes. I would ask the employees their thoughts about the new branch in India and not America. How do they feel about the downsizing of one department to open another? What problems in the American facilities need to be solved to be more efficient? What is missing in the working process that the Indian filial is supposed to compensate for?
However, to get more clear answers, the “Five Whys” method can help determine the answer to the initial question. It implies asking five questions in a row connected to get the issue’s core (Key, 2019). In this case, the first question is why the corporation decided to open the facility in India? Why did the higher management decide to close one American branch? Why did the company choose this method of getting financial support? Why did they not get the funding before initiating the project? Why did the higher management not attempt to fix the problems in already existing facilities first?
Conclusion
Overall, to achieve the organizational goal, the company has to sacrifice one of the American branches, which is in Tampa. In that case, there will be enough funding to open the facility in India and generate more profit. However, it causes certain negative consequences and could be avoided if not for the lack of decent leadership and poor management in the corporation. To minimize the damage, the employees from the closing facilities should be redistributed or promoted so that at least part of them could keep their job.
References
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Budhiawan, J., Rimawan, E., Ganap, J. G., & Mayasari, E. Productivity Analysis Using Objective Matrix (OMAX) and Five Whys Analysis Methods on Rubber Powder Production Line at Pt Tiga Bintang Gautama.
Key, B. A. (2019). Five Whys Root Cause System Effectiveness: A Two Factor Quantitative Review.
Klumbyte, E., Bliudzius, R., & Foikades, P. (2020). A SIPOC based model for the sustainable management of facilities in social housing. IOP Conference Series: Earth and Environmental Science (Vol. 410, No. 1, p. 012081). IOP Publishing.
Management. Ali, BJ, & Anwar, G. (2021). Administrative Crisis: The Role of Effective Leadership Styles in Crisis Management. International Journal of Advanced Engineering, Management and Science, 7(6), 31-41.
Sayyadi, M. (2019). How effective leadership of knowledge management impacts organizational performance. Business Information Review, 36(1), 30-38.