Valerie Morgan Case Study Essays - Administration,

Valerie Morgan Case Study Valerie Morgan Case Study Partnering Leadership and Controls Margaret Glendinning-Welch December 13, 1999 Abstract Morgan Publications is currently in the leadership crisis stage of the company's evolution. This is characterized by the need for more formal means of communication, unwanted management responsibilities of the founder and increasing conflicts of the department managers. A strong management entity is needed to pull the organization together and assist in setting a direction for the future. This direction includes establishing more formal systems and controls, but without sacrificing department manager's autonomy and creativity, and maintaining a decentralized authority structure. The Problem Morgan Publications suffers from a leadership crisis as evidenced by Valerie Morgan's indecisiveness and a lack of basic management systems. Her desire to be a leader and innovator is hampered by her administrative responsibilities. (Turner & Stevenson, 1986, 779) By divesting herself of the administrative and management role, adopting minor structural enhancements and controls, she could focus on the future and growth of Morgan Publications. These changes can be implemented without sacrificing the ?small business? environment or curtailing the autonomy and creativity of the employees. (Turner & Stevenson, 1986 781) The Leadership Crisis Characteristics of the leadership crisis stage include: increased number of employees causing a requirement for formal instead of informal means of communications, founders being burdened with unwanted management responsibilities, and conflicts between department managers [leaders] increase. (Greiner, 1972, 42). The realization that professional management is needed is coupled with an unwillingness of the founder to step aside and relinquish control. (Greiner, 1972, 42). Morgan Publishing and Valerie Morgan exhibit all these problems associated with leadership in crisis. Morgan Publishing has grown from 10 employees in 1982 to 42 employees in 1986. (Turner 1986, 775) During this time several formal systems were adopted; however, department heads were reluctant to support them. Department managers set goals in the form of budgets, but refuse to substantiate them with requested supportive documentation. (Turner 1986, 776) Valerie Morgan's request for information from her managers translates into a lack of trust or a restriction of their independence to them. (Turner 1986, 776) The system for managing delinquent accounts does not follow established policy and results in advertisements being pulled well after the 30-day limit, usually not until after 90 days. (Turner 1986, 777) Additionally, the sales department is not notified of delinquencies and only finds out when the accounts call to complain. (Turner 1986, 777) As a manager, Valerie Morgan maintains an ?I don't know and I don't care? attitude that leads her to ?ignore the administrative component and just tell someone else to make a decision.? (Turner 1986, 779) She is saddled with unwanted management responsibilities that leave no time for the ?creative, big picture issues? or for developing new product concepts?. (Turner 1986, 767) By and large, day to day decision making is left to the department managers and staff with her being involved in a random, multi dimensional sort of way, with no clear objectives or agenda for her to focus on. Conflicts between departments arise due to lack of communication, clear defined policies, and controls. A salesman will promise special space to one vendor causing the conference department to compromise their position with other vendors. (Turner 1986, 777) The accounting department mails past-due notices to advertisers without warning the sales department. (Turner 1986, 777) The production manager uses a ?pen and paper' method of accounting because the current system does not provide her with needed information to maintain accountability. (Turner 1986, 780) Almost every month the advertising, editorial and production departments are in turmoil over the closeout of the Magazine, due to the lack of an established formal criterion. (Turner 1986, 767) Management in Action Morgan Publish needs to hire a manager who has the necessary knowledge and skills to pull the organization together. (Greiner 1972, 42) By installing a capable manager, Morgan Publications can enjoy a period of growth and direction. (Griener 1972, 42) Job assignments have already become more specialized and some organizational structure is already in place. (Turner 1986, 778) While controls and communication are needed at the strategic level, this should not occur at the cost of departmental autonomy and the decentralized decision making process. Decentralized responsibility and decision making has improved many big firms' response to the