IIBMS – MANAGEMENT PROBLEM 6

IIBMS – MANAGEMENT PROBLEM 6

The traditional organization is characterized by tacit understandings among managers and subordinates. In some instances, the rights and responsibilities of each group are contained in a detailed contract, such as the one between a union and management. Under a tacit understanding, an employee responds to a supervisor for a number of reasons. Custom or habit is a very important reason; organizations throughout history have functional through a hierarchical relationship like that found in the armed forces. A manager usually has the ability to determine the subordinate’s pay and can even arrange to have the subordinate dismissed. Because there is a long history of this type of relationship, most people in organizations are quite comfortable with it.

1.             In some of the organizations described in this chapter managers form alliances with various partners. These alliance firms may provide a virtual component for your organization. However the employees involved in this alliance do work for two different firms. How does a manager manage under these conditions? Suppose that your firm enters into a relationship with another firm to take over its inventory of raw materials and to become a just-in-time supplier. The partner firm hires your former inventory employees so they no longer work directly for you. Describe the role of a manager in working with an alliance partner that provides you with a virtual component of your firm?

IIBMS – MANAGEMENT PROBLEM 6

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