Question

1. Does organizational development hold the key to Ray's questions? 

2. As a personnel consultant, what recommendations would you make to him?dent. The sales representatives reported to the vice president in their particularr About a year ago, Ray had decided to add a branch in a new area. After doing cons branc ing Employenr The employees were distributed equally between the two branches, each supervised by research, he had decided it might be more feasible to acquire one of the smaller f operating in the area. A bank office whom he had contacted approved is plans and pr s al two branches covered a large geographic area that was divided into two regions omi however, sat help in locating a company to buy and in financing the acquisition months went by, and Ray discussed possible mergers with two firms s becoming slightly discouraged when th e firm. Ihis firm had been in business for approximately 30 years, and the owner had only recently decided to retire. The company, which was almost equal in size to Rays, did not sell in his firms geographic area Therefore, it appeared to be a natural choice, and Ray was quite excited about prospects acquiring it. The owner had agreed to accept payment over several years. Although the price actory terms coul ld not be reached. He wa called him to set up a meeting with the owner of another real estat was higher than Ray had originally intended to pay, the deal was too good to refuse. Then, when the deal seemed ready to be closed, the owners of one of the other firms Ray had been interested in buying called and said they wished to renegotiate. Ray was able to mak a favorable arrangement with them. After discussing his situation with the banker, he finall decided to purchase both firms. Although this plan far exceeded his original intentions, h knew opportunities such as these did not come along every day. Now Ray pondered his next step. He had been so busy in the negotiations that he hadn had time to develop a plan for managing his enlarged company. As an entrepreneur, he knew he needed to develop a professional team to manage the new business properly. He now had three more branches and about 45 additional employees. There were so many questions to answer. Would it be better to operate the three branches as independent divisions? Should he retain the individual identities of the two new firms, or should he rename them after his original one? He needed answers to these and all his other questions Questions 1. Does organizational development hold the key to Rays questions? 2. As a personnel consultant, what recommendations would you make to him? The On the Job example ing at the end of this chapter provides a brief description of many train methods used in management breaks into teams of two students each. Each team prepares a 10-minute presentation on development. To uses, advantages, and disadvantages of one assigned method. understand those methods better, the class 1. See LeeAnne G. Kryder, Large Lecture Format: Some Lessons Lea Quarterly, March 2002, pp. 88-94 A

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Answer #1

1. Does organizational development hold the key to Ray's question?

Yes; however, the earlier stages of organizational development should have been operating as Ray contemplated the rather sudden opportunity that resulted in acquiring a second outside firm—thus expanding to a much greater extent than planned. The ultimate goal of OD is to structure the environment in such a manner as to use the developed skills and abilities of individual managers to their fullest extent. By implementing an OD program, Ray can effectively analyze each manager’s strengths and weaknesses and align the organization accordingly.

2. As a personnel consultant, what recommendations would you make to him?

One might recommend a more gradual transition toward consolidation, given the need of newly-acquired firms and their personnel to adapt. Meanwhile, Ray needs to get a good feel for the present managers and employees of the two new acquisitions. Once this has been accomplished, Ray can begin molding his team with the use of a management development program. Once the strengths, weaknesses, and potential of all managers are assessed, the necessary decisions regarding organizational structure can be made.

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