COURSE: HUMAN BEHAVIOUR IN ORGANISATION

CASE TITLE: PAUL IN MAGNA LIMITED

Question 1

i. The problem with the company when Paul arrived?

The problem was decreasing production capacity and increasing operating expenses

ii. What is the root cause of the problem?

The root cause of the problem is poor management of the organization by previous
management because;
a. Previous management refused to acquire new assets in replacement of old assets
b. Previous management also increased labour force in anticipation of asset acquisition
which never materialized.
iii. Prepare stakeholders’ analysis matrix for the first and second outsourcing. Why did the change
process fail?
List of Stakeholders
 Paul
 Parent Company
 Employee (Unionsed)
 Employee (Ununionised)
 National Union
 Local Union
 Management
 Government Agency
a. First Outsourcing Matrix

1. Employee (Ununionised) 1. Paul

2. Management 2. Employee (Unionised)
3. Outsourcing Company 3. Parent Company
Interest

1. National Union
2. Government Agency

Influence

b. Second Outsourcing Matrix

 1. Paul
1. Employee (Ununionised) 2. Employee (Unionised)
2. Management 3. National Union
3. Outsourcing Company 4. Government Agency
5. Parent Company
Interest

Influence

iv. Why the Change Process Failed

a. Paul did not get the buy-in of the Union before implementing the process
b. He did not get the buy-in of other management team
c. He did not identify and prioritize the various stakeholders concerned.
d. Paul did not follow due process in the outsourcing bid.
e. Plan priority misplacement (long term plan for short term plan)
f. Outsourcing core business line.

v. Advice to Paul

a. Paul should Identify and prioritize all concerned stakeholders

b. Paul also need to engage the Union at both levels
c. Review is change management process by carrying other management members along.