Assignment Section A

Identification of Current Organizational Problems

Professor: Indira Somwaru

Group member:
1. Vinita Tahilramani 101473895
2. Natassia Sehgal 101438046
3. Duc Gia Nghi Nguyen 101477133
4. Shweta Kalra 101477127
5. Rashanpreet Kaur 101471054
6. Shriya Kapadia 101472292
Duplox Copiers Canada Limited, a wholly owned subsidiary of Duplox Copiers Incorporated,
which is a large multinational firm based in the United States. Duplox Copiers Canada Limited
(DCCL) is responsible for the sales, installation, and servicing of Duplox-brand copiers, but not
their manufacturing, which is carried out in other countries. Most of them are located in branch
offices across Canada.

Utilizing both the strategic and behavioral framework, the team has juxtaposed the following key
points to delve deeper into the case study:

Strategic framework

1) Contextual Variable

Contextual Environment Business Size Work Force Technology

Variables Strategy

Medium to
Stable Medium Size High level of Things
Defender
Description Simple (1200 education in Routine
Low cost
employees) technical
aspects

Appropriate Classical Classical High Human Classical

Managerial Managerial Managerial Involvement Relations Managerial
Strategy Strategy Strategy Strategy Strategy Strategy

a) Environment: Duplox Copiers, with a medium to high skilled labor force and a stable
operating mechanism, is grappling with declining employee morale, lower customer
satisfaction, increased complaints, and falling revenues despite cost cuts. Common for a
mid-sized company, internal issues include a lack of cooperation and stable leadership at
the top management level, evident in public blame between the Director of Marketing
and Director of Technical Services. Externally, the competitive market is challenging,
with a significant drop in revenues and profits from 2016 to 2017, even amid a reduction
in Technician Service Specialists. Rising turnover among these specialists poses a threat
to operations and company culture. These internal and external challenges highlight the
need for strategic changes to address the situation effectively.

b) Business Strategy: It seems Duplox Copiers has implicitly been using a defender
competitive strategy, where they aim to excel within a fairly narrow scope of products
and services, or a low-cost strategy, where they attempt to compete primarily by reducing
expenses. We can see clear evidence that Duplox Copiers had previously relied on a
 classical managerial approach, and aims to become even more conventional in their
response to current problems.

c) Size: As a company with more than 1,000 employees, Duplox would be considered at the
higher end of medium in size. More precisely, given its total headcount of approximately
1,200 individuals, DCCL meets the definition of a medium-sized business. (Business
Sizes: Classifications and Characteristics, 2022)

d) Workforce: At Duplox Copiers, the skills required of the workforce are generally
medium to high. Many roles within technical servicing, engineering support, sales, and
leadership necessitate post-secondary education in fields such as electronics, engineering,
business, accounting, and commerce due to responsibilities like servicing complex copier
machines, handling finances, marketing technical equipment, customer engagement and
overseeing diverse operational aspects. Even managerial positions often demand
advanced degrees. Meanwhile, some clerical and administrative jobs require moderate
skills levels.

e) Technology: At Duplox Copiers, the type of technology involved varies depending on

the particular role. Routine servicing of copier machines follows standardized processes,
while engineering tasks addressing complex issues utilize specified technical procedures.
The technology used in sales takes a mediating position between copier devices and
customers. Moreover, when servicing equipment, the core products dealt with are the
physical copier machines themselves.

Overall assessment: The contextual variables at Duplox Copiers suggest a mixed picture, with
some factors not fully supporting a classical managerial strategy. Yet, there's merit in
considering a human relations approach and high involvement approach. Despite this, the key
factor is that most employees, including sales and service staff, operate autonomously.
Therefore, in this scenario, a high-involvement strategy is best, fostering self-control and self-
management. Thus, despite other complexities, empowering employees through this approach is
crucial due to the nature of their duties.
2) Structural Framework

Structural Job Design Coordination Control Communi- Leadership Reward

Variables /Department System cation & Decision System
Making

Description Narrow, Strict lines of A lot of Formal and Authoritative Extrinsic

fragmented command and procedures top-down
Hierarchical and oversight

Appropriate Classical Classical Classical Classical Classical Classical

Managerial Managerial Managerial Managerial Managerial Managerial Managerial
Strategy Strategy Strategy Strategy Strategy Strategy Strategy

a) Job design: The classical managerial strategy that resulted in the narrow job description
with fragmented job design. Additionally, the work is structured in such a manner that the
TSS who starts the work is never able to finish it. The job of the TSS and FSM is highly
dependent on the Model and specializations that a customer with different models have to
undergo various TSS and FSM.

b) Coordinations/ Departments: Duplox Copiers has six strict functional departments

divided by role, with Technical Services further broken down by machine model series.
TSSs and Field Service Managers (FSMs) are specialized in a particular series with little
flexibility. There is also a regional structure at the top of this departmental structure.
Coordination reflects strict top-down control, as TSSs must get approval from FSMs even
for tasks within budget limits. FSMs are reluctant to allow calls to technical support due
to their performance evaluation.

c) Control System: The organization adheres to a standardized operational procedure,

necessitating approvals from senior management. This uniform approach ensures
consistent operations across diverse geographical locations. However, decision-making at
the grassroots level requires approvals from various stakeholders across departments,
fostering a dependency on senior management that impedes the development of
individual contributors into future leaders. Moreover, the top-heavy approval matrix is
perceived as over-engineered, contributing to prolonged Turnaround Time (TAT) for
deliverable closures. To optimize efficiency, it is recommended to craft a Standard
Operating Procedure (SOP) where senior management addresses specific queries and
budget issues, while delegating a proportionate span of control to middle management
and individual contributors, facilitating optimal workflow.

d) Communication: Based on Duplox Copier's organizational structure and processes,

communication appears to be both formal and top-down. TSSs must get written approval
 from FSMs for tasks and orders, even within budget, showing a formal approval process
through the hierarchy. FSMs are evaluated on formal metrics like costs and targets,
making them reluctant to approve things impacting these metrics, like technical support
calls. Sales reps are given strict pricing guidelines from senior management and formally
compensated based on sales volumes, emphasizing directives over flexibility. Each strict
department has a formally designated director, suggesting information flows through
formal departmental lines rather than informal channels.

e) Leadership & Decision Making: The management is very authoritative with limited /no
room for democratic decisions at the lower lever. The budget constraints and the structure
of the organization has resulted in micromanagement. On the one hand the Sales team is
selling the product with the targets irrespective of the quality whereas the Technical team
is working on the issues caused due to reckless selling. There is minimum coordination
between the departments for mutual work.

f) Reward System: TSS compensation is a flat monthly salary plus overtime. Their
performance reviews from FSMs are based mainly on adhering to strict productivity and
expense standards. Additionally, FSM/manager bonuses depend solely on quantitative
metrics like whether TSS productivity and repair expenses met targets. Sales reps' pay is
partly based on the extrinsic goal of achieving a certain sales volume. Department
directors' compensation is tied to cost control targets.

Overall Assessment: The company thrives on clear SOPs, a transparent structure, and formal
communication. The reward system, based on quantitative metrics, ensures performance
objectivity. Yet, challenges persist, including a narrow job design, senior management
dependence, and communication hurdles. Striking a balance between formalization and
flexibility is crucial for efficiency. Transitioning from HR relations to a high-involvement
strategy can address concerns, fostering a democratic setup for employee expression and
professional growth. Thorough training will enhance customer call handling and contribute to a
resilient, customer-focused culture.

Behavioral Framework

The analysis of the case study states that DCCL’s current managerial strategy is classical, as
established through the structural variables affecting DCCL which suggests that the employees
exhibit task behavior as the employees carry out the designated responsibilities and tasks. This
is leading to several issues in the behavioral framework of the company that includes both their
desire for work and their attitude towards the organization seem to be declining among the
technical service professionals employed by the company. One of the leading causes are low
task identity and low task significance which due to the negative consequences of inadequate
reward system, strict managerial control, and limited autonomy have led to lack of motivation
among employees, Technical Service Specialists (TSS) in particular. This is impacting their
performance and willingness to go above and beyond their assigned job.

The stringent protocols for implementing machine installation, the restricted latitude in
determining maintenance schedules, and the necessity of obtaining prior authorization for several
tasks, along with the rigid adherence to the 8.30 am to 5 pm branch hours. This is because
DUPLOX does not want to pay overtime, which is causing staff dissatisfaction and increasing
employee turnover; this provides evidence of the managerial control and dearth of autonomy
imposed upon the TSSs.

The case makes clear the effects of decreasing employee perks, "About 50 percent of the sales
representatives' direct pay is based on volume of sales,” and the remainder is base salary” this is
leading to increased turnover among sales representatives, and the impact of cost-cutting
initiatives on employee satisfaction. These factors have the capacity to significantly affect both
employee satisfaction and retention in the organization.

The issues raised in the case study are in line with task behavior theories of motivation,
specifically focusing on process theory, which delves into understanding motivation by
examining the decision-making processes individuals employ for specific actions. The
organizational structure, encompassing reporting relationships, approval processes, and
performance evaluation criteria, significantly shapes employees' behavior and decision-making
within a company. In this case study, the technical service staff (TSS) has experienced unfair
treatment and a lack of procedural justice compared to the sales team, stemming from the
organizational structure, reporting connections, and approval processes.

The absence of procedural justice becomes apparent as there is a perception that the sales team
receives preferential treatment, with managers deeming the TSS's work as subpar ("poor
performance of the service personnel is crippling the efforts of the sales force"). This unjust
treatment towards the TSS indicates a lack of fairness in procedural matters. The intricate and
multi-layered structure of the technical service department, coupled with the need for dedicated
TSS for each model and numerous client interactions involving various models, creates
challenges for the TSS to adopt a broader perspective in their work. The organizational structure
and procedures pose obstacles for the TSS, impacting their behavior and decision-making
within the company, aligning with the principles of process theory. The organization's structure
has contributed to the deficiency in organizational justice.

The case study also aligns with Two factor theory of motivation: To have both satisfied and
motivated employees, organizations should prove both extrinsic and intrinsic rewards ,
However, it appears that DCCL is falling short in offering these kinds of incentives. The
sentence, "TSSs generally have little discretion over maintenance schedules and services; they
are to be performed strictly according to schedule," makes clear how work autonomy is lacking
and how intrinsic motivations are lacking. The Director of Technical Services’ animosity toward
criticism suggests that there are no inherent benefits for the TSS, given the shift in their attitude
regarding their work and the organization. The director suggests that while the department has
improved productivity and reduced costs, it has not given staff meaningful feedback or
acknowledged their accomplishments. This lack of acknowledgment might be a factor in staff
churn.

In order to increase staff morale, motivation, and performance, DCCL's CEO has raised concerns
regarding the company's compensation and reward system. Using a Pay-for-Knowledge plan
and an equitable incentive system—which has been demonstrated to boost morale and job
satisfaction—is one approach to do this. Additionally, implementing job rotation can benefit
TSS staff members by lowering burnout and improving job enlargement, and their skill sets,
which will boost morale and performance. Training initiatives and organized rotation programs
can help achieve this.
Overall, these behavioral aspects play a critical role in learning the dynamics within the company
and are necessary components to take into account when assessing the efficacy of the current
managerial style and suggesting modifications that are in line with the human relations approach.

References

Business Sizes: Classifications and Characteristics. (2022, June 24). Indeed. Retrieved February

1, 2024, from https://www.indeed.com/career-advice/career-development/business-sizes

Richard Long, & Parbudyal Singh. (2021). Strategic Compensation (Seventh ed.). Top Hat.