Management Problem Essay

269 WordsJul 10, 20132 Pages
Executives at Pacific Brands organization failed to implement a plan that may have prevented the negative reaction they received from consumers, staff and the wider community. Executives at Pacific Brands overlooked one of the key components, the management process that is compromised is Planning. Shermerhorn (2010) states that 'Management is the process of planning, organizing, leading and controlling the use of resources to accomplish performance goals' (pg 19) This quote shows that to be a manager of any level, one must be able to follow this process. Looking at the four basic functions of management, Shermerhorn (2010) indicates that planning is one of the basic requirements of a manager (pg19) there was no plan or action employed by management to prevent or cancel negative brand name impact. This has resulted in loss of revenue and customer loyalty Staff could have been given proper warning and a better understanding of what was happening at Pacific Brands. Had they implemented Henry Fayol's Scalar chain principle, Shermerhorn (2010) explains that 'there should be a clear communication from top to bottom in the organization' (p90) To plan alternative course of actions proved to be imperative, had they kept clear communication lines with staff at all levels, the decision to move offshore could have possibly been avoided. The uncertainty among staff caused confusion and created internal turmoil for the company and this extended to the media and wider community. With the correct planning and communication it could have been prevented. John R. Schermerhorn. Management Foundations & Applications. John Wiley & Sons Australia, May-10. pg 19 &
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