Reference no: EM132272263

Case Study

Fontel Ltd is an expanding distributor of components for mobile phones and is likely to become one of the major players in Europe. Like most organisations, Fontel experienced difficulties through a period of growth, with a misalignment of systems, processes, equipment and people.

Rather than attempt to fit new challenges into the ways of the old methods and structures, Fontel actively reorganised the way it functioned. It began with a new mission statement that emphasiseg the firm's commitment to adding value to customers through innovation and continuous improvemer*. As management at Fontel examined the needs and opportunities for turning around performance, it adopted a systems approach. The systems model examines all elements of an organisation as an inter¬acting whole, sensitive to external pressures. Fontel managers learned that, as they changed one element, such as ways of transacting with suppliers, they would also have to change internal processes and even their relationships with customers.

What they realised was that they had to shift from focusing only on results, to looking at the processes within the system that were producing those results. They also knew that a redesign of organisational systems needed to provide flexibility so that people could adapt their behaviour to changing circumstances in daily activities. As a starting point for systematically learning about man-agement and behaviour within organisations, Fontel identified two key mental models: one emphasis¬ing the dynamic nature of managerial roles, and the other identifying the macro options managers have available for changing organisational performance.

Discussion questions

1. How can Fontel's managers measure outputs to ensure that they achieve their mission?

2 Why is it helpful for managers to understand that they must be prepared to engage in a constantly changing set of roles throughout the day?

3 Why can the transformation process affect outputs?

4 How can managers ensure that their intended outputs are achieved?

Applied questions

5 If Fontel had decided to adopt a scientific management approach, do you think systems and people could be aligned?

6 Using systems theory as a predictor of organisational effectiveness, how can management ensure that the subsystems at Fontel can integrate to form an effective whole system?

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