Dear Experts, Please help me CROSBY MANUFACTURING CORPORATION I\'ve called this

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Dear Experts,

Please help me

CROSBY MANUFACTURING CORPORATION I've called this meeting to resolve a major problem with our management cost and control system (MCCS), remarked Wilfred Livingston, president. "We're having one hell of a time trying to meet competition with our antiquated MCCS reporting procedures. Last year we were considered nonresponsive to three large governmen contracts because we could not adhere to the customer's financial reporting requirements. The government has recently shown a renewed interest in Crosby Manufacturing Corporation. If we can computerize our project financial reporting procedure, we'll be in great shape to meet the competition head-on. The customer might eve waive the financial reporting requirements if we show our immediate intent to convert." Crosby Manufacturing was a $50-million-a-year electronics component manufacturing firm in 1985, which time Wilfred "Willy" Livingston became president. His first major act was to reorganize the 700 employ into a modified matrix structure. This reorganization was the first step in Livingston's long-range plan to obtair government contracts. The matrix provided the customer focal point policy that government agencies prefer. A three years, the matrix seemed to be working. Now they could begin the second phase, an improved MCCS po On October 20, 1988, Livingston called a meeting with department managers from project manageme cost accounting, MIS, data processing, and planning. Livingston: "We have to replace our present computer with a more advanced model so as to update our MCCS reporting procedures. In order for us to grow, we'll have to develop capabilities for keeping two or even three different sets of books for our customers. Our present computer does not have this capability. We're talking ab sizable cash outlay, not necessarily to impress our customers, but to increase our business base and grow. We weekly, or even daily, cost data so as to better control our projects." MIS manager: "I guess the first step in the design, development, and implementation process would be the

Explanation / Answer

1. yes, Livingston made some mistakes initially. a) the change of the organisation structure to a modified matrix structure without the consent or opinion of the employees or without a study on the impact on the employees. Typically it is done only to secure government contracts and agencies preference. b) The introduction of new project leader who has no technical expertise and knowledge. This was not a good move as managers are already coming up with plans and suggestions. even though he is at the back guiding the new project leader. having a member with knowledge and expertise will be good and give boosts to the team to acheive easy targets. c) not inviting other department managers to the meeting. they can also give some feedback and suggestions and their issues and concerns.

2. a) the functional employees would not be feeling good. already they feel that we are not considered in changing the structure into a modified matrix structure. b) they will be even more agitated and let down by having a project leader who is not good in systems and less knowledge. they may say that they will work together and support him in all way possible, in reality they will be very lethargic in helping him and they will have no intention of getting this fixed ASAP. c) they will also feel demotivated such taht they will not come up with new ideas even if they have.

3. a) make a person with a good technical knowledge and management skills as a project leader so that the work can be get done easily and as well as the managers will help other Teams.

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