Organizational Design Jensen

Topics: Mind map, Concept map, Management Pages: 14 (3422 words) Published: March 22, 2015
CONTENTS
1. Background .......................................................................................................................... 1 2. Open System Model: Current and Desired State ............................................................... 2 3. Root Cause and Symptoms identified in Jensen Fine Furniture ...................................... 3 3.1 Primary Problem – Poor Management of Network Development ............................................ 3 3.2 Secondary Problems ....................................................................................................................... 4 3.2.1 Secondary Problem #1: Jensen’s retained team not in place ............................................... 4 3.2.2 Secondary Problem #2: Jensen’s retained team lacks required skills and poor knowledge transfer ................................................................................................................................. 4 3.3 How this identified companies affected the company? .............................................................. 5 4. Intervention Plans for Jensen Fine Furniture .................................................................... 6 4.1 Concept Fan ..................................................................................................................................... 6 4.2 Mind Maps ........................................................................................................................................ 7 5. Recommendations ............................................................................................................... 8 6. Conclusion ..........................................................................................................................10 7. References...........................................................................................................................11 8. Appendices..........................................................................................................................13

1. Background
Jensen Fine Furniture was manufacturing high quality furniture based in Australia. As the nature of their business is in the niche area, the company’s profit and performance were very vulnerable to the unexpected and inexplicable change in the quality/cost of raw materials, and other variable factors.

Due to the restrictions of the government on the logging of old growth forests, where the bulk of their raw materials came from, they were faced with an increased cost of good quality hardwood, an increase in their overhead costs and the retirement of Jensen’s experienced and skilled tradesman who plays an important role for the top quality pieces. Jensen decided to outsource their manufacturing to other countries where the cost of labor and overhead costs were significantly lower. After months of sourcing and negotiation, Jensen decided to work with Century Furniture located in Vietnam who owned a new plant and had a track record of supplying furniture to retailers. Both parties signed a contract indicating the requirements which they expected Century to fulfil and Jensen will be sending their foreman, Don Donelli, to train the workers in Century for them to achieve the expectations. Things did not go well as planned. Raw materials were being held in custody that caused the delay in the delivery of the materials to the plant. Training was extended for a longer period, substandard final products that don’t conform to the standards of Jensen were being sent back to Australia after weeks of delay which led to Jensen losing the deal with their major customer. Jensen suffered a significant sum of monetary losses and reputation due to the venture.

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2. Open System Model: Current and Desired State

We first need to determine where the organisation is and what the problem areas that are affecting the organisation and so we use the Open Systems Model. The input would determine the...

References: 1. Barry Oshry, “Seeing Systems: Unlocking the mysteries of Organisational Life”, BerrettKoehler Publishers Inc, 2nd edition, (2007), pg 5-24, pg 53-57
2
Times and Prentice Hall, Pearson Education Limited (2006).
(2006): pg 38-44
4
Change. 9th ed. Cengage Learning, 2009: 157, pg 89-96
5
8. E.C. Martins, F. Terblanche, (2003) "Building organisational culture that stimulates
creativity and innovation", European Journal of Innovation Management, Vol
11. Huntley, Helen. "Five Reasons Why Offshore Deals Fail." Gartner, Stamford, CT(2005)
12
13. John Child. 1972. “Organisational Structure, Environment and Performance: The Role of
Strategic Choice.” Sociology Volume 48 (Issue 5).
15. Mirvis, Philip H., and Christopher G. Worley. "Organizing for sustainability: why networks
and partnerships?." Organizing for Sustainable Effectiveness 3 (2013): pg 1-34
16. Nicholas Clarke. 2005. “Transorganisation Development for Network Building.” Journal
of Applied Behavioral Science Volume 41 (Issue 41).
avoid." Journal of Business Strategy 25, no. 2 (2004): pg 37-42
18
of Organisational Change”, Berrett-Koehler Publishers Inc, (2006), pg 18-27, pg 52-62
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