The Exley Chemical Company Case

Running head : THE EXLEY CHEMICAL COMPANY

The Exley Chemical Company Case

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Abstract

It is inevitable in an organization to have internal problems even how simple or intricate the structure of an organization is . These problems arise anytime and they persist if not recognized and acted upon immediately . Internal problems may be caused by miscommunication , rule disobedience , employee conflicts and many others . If these problems continue much serious problems like non-coordination and defeat of the company 's

goals will rise . Organization development is the process to solve these cases . It aims to improve the organization for the benefit of the employees as well as the stakeholders . The Exley Chemical Company has not been free from any of these problems they had challenges within their company that needs the treatment of organization development

The Exley Chemical Company Case

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I . Problems

A . Macro

1 . The company experienced a decrease in sales and profits last year because as the technology advances rapidly and additional product lines emerge , there were fast shifts in the sales of the company 's different product groups

2 . A company competitor developed a new process of producing polymers which can be sold at lower prices . The competitor is about to patent the newly developed process and it threatened the company 's competitiveness

B . Micro

1 . The new product development division faced a conflict in functions with the marketing and other departments

2 . The product managers of each product group had conflicts with the marketing executives , other departments and to each other which grew into competing factions

II . Causes

1 . Because of the fast shifts in market sales of the product groups tension among the members of the product groups emerged . Each product group wanted to have better performance in market than the rest which is not actually negative at all for the firm because it motivates everyone however the product groups became factions that are not helping in the coordination of all units in the company

2 . With the intention to meet the need of increasing production , the company 's executives formed the new product development division . The function of this new division overlaps with that of the research division and marketing department because the extent of functions they perform was not closely discussed and limited by the top-level management

3 . The purpose of appointing product managers is to enhance the coordination of the product 's contribution to the company and in the pursuit to improve the sales of each , product managers did some marketing strategies which was seen by the marketing executives as not contributing to the integration of their markets but rather as acts only for the good of product group the product manager is handling

III . Systems affected

1 . Structural : Since there is an overlapping of functions when the product development division was formed , the bureaucracy of the whole company is deteriorated . The specialization of work done by the lower level departments is now...