OB TMA C

Study Case from J. Martin Corbett 'Critical Cases in Organizational Behaviour'

Managing change at Cox Container Company (CCC), a brief summary of thecase

CCC is a large manufacturer of various types of containers with over 380 employees.

It is a family busniess owned by a respected person named Harold Cox.

Two thirds of employees work in the production department and large majority of jobs is held by ethnic minorities. Half of them worked in the company for 10 years and more.

Nearly all senior positions were promotions of shopfloor employees (Abdul Aziz as a manager).

Production employees are autonomous in their work and like it.

In view of fierce competition and decreased profitability H. Cox assigns Erica Wilson a task to conduct a review of the company's operations.

Wilson concluded that the company lacks operational and cost controls, rapid growth created a vacuum in financial and management accounting.

A new Administration department was created. John Straw (a charted accountant) appointed as its manager. His first job is to review accounting procedures and find ways to tighten cost controls.

Wilson planned to develop Administration department in two futher phases:
1. Implement an appropriate budgeting system (to replace the rather informal system in operation)
2. Involve a systematic review of CCC's operational procedures and implement comapny-wide information system

Two more external people were employed:
1. Eric Long, budgeting section manager (assigned to develop budget control system)
2. Simon Pedder, supposed to use his analytical experience in full review of CCC's operational procedures

A meeting was organized (with all department heads) to explain the new set up (A.Aziz didn't attend).
No objections were raised,but managers didn't really understand how the system would affect the working practices.

A steering group was decided to set upto oversee implementation of the budget control system.

John Straw received repeated complaints from Long and Pedder re lack of cooperation from Aziz.

Straw confronted Aziz face-to-face and failed to get his (Aziz's) cooperation. Aziz beleieved that Straw isbuilding his ownlittle empire (Straw thought the same about Aziz:).

Straw was angry at Aziz's outburst and decided to enlist GM (Wilson) for help in running the new Administration department.


Case resolution:

Outline and analyse the problems confronting CCC in the short and long term and offer recommendations for their resolution.

Wordcount limit is 3 000 words