The Wallace Group

Strategic Management: Set of managerial decisions and actions that determine the long-run performance of a firm (Wheelen & Hunger, 2004 p2). The typical organization structure results in many of the problems with which we are asked to deal, such as:

* Conflict between departments (e.g., the perennial one between Sales and Operations)

* Long lead times in developing new products and services

* Quality problems, billing inaccuracies, etc.

* Inefficiencies (which are usually blamed on individuals)

* Not being able to keep up with customer demands

* Low employee morale (often related to staff not being empowered to make decisions)

* Departmental goals and performance measures not being cascaded down through the entire organization (goals stop at the top of the hierarchy without a real appreciation of how "it all fits together")

Learning Organizations: An organization skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights (Wheelen & Hunger, 2004 p8).

Organization design: management decisions and actions that result in a specific organization structure.

When viewing www.motivation-tools.com, leadership style influences level of motivation. The Wallace Group is authority motivated, which is based on following policies, which results in low efficiency.

With the Wallace group having multiple production lines and produces multiple products, their job descriptions are a scientific management style. A problem with scientific management is that employees do not get to be intrinsically and extrinsically motivated. When employees work under scientific management they view their work as depersonalized, meaningless, and monotonous, their job satisfaction may decline (George, J. & Jones, G, 2005). This decline could lead to absenteeism and turnover.

Goals need to be set where the employees can meet them and also benefit the organization. The goals need to be specific and difficult enough to motivate the employees to work to achieve them.

A skill-based evaluation which has two criteria's; technical competence and social/ interpersonal skills needs to be done at the Wallace Group. Each position needs a set of technical qualifications that needs to be met and social/interpersonal skill requirements. Upon completion of a particular technical requirement an employee can ask for an appraisal review from his team in hopes for a pay raise. The appraisals are based on a point system and feedback.

The basic purpose of performance appraisals is to evaluate the performance gap, if any, and inform the employees about the quality of his/her performance (www.performance-appraisals.com).

Employees have a four-fold viewpoint

1. Tell me what you want me to do

2. Tell me how well I have done it

3. Help me improve my performance

4. Reward me for doing well

Organization's viewpoint: is to establish and uphold the principle of accountability (www.performance-appraisals.com)

Jennifer M. George and Garth R. Jones (2005, p 252) states that from a learning and motivational perspective; whenever possible, pay should be based on performance. The pay raises could be in the form of a salary increase or a bonus. Salary increase plans do not have a great impact on motivation for three reasons. One, they are based on date of hire not performance. Two, it could be partially based on performances. And three, salary cuts rarely occur so salary level vary more then performance levels. Bonus pays are based more on merit payment plans. Merit pays take two forms; piece-rate and commission. When pay is solely based on commission, motivation will be at the maximum level.

Because of the diversity at the Wallace Group, career opportunities need to be available to all employees. The Wallace Group can hold special training seminars for the minority employees to gain skills/ knowledge needed to advance up the corporate ladder.

Dear Mr. Wallace,

I envision a retailored framework that encourages new approaches to working together, making decisions and solving problems, as well as a new organizational structure with newly defined positions and modified reporting structures. To accomplish this goal, I have created an integrated organization which retains a certain amount of the specialization found in the old structure but also incorporates collaborative leadership and decision-making. The structure includes Production Groups which are based on the traditional technical services tasks of chemicals, plastics, and electronics. In addition, I recommend that there be teams that coordinate the work flow that crosses Production Groups and Divisions.

Production Groups

Production Groups are responsible for the day-to-day work of the division. Each manager and employee