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Evaluate the future of Biotech Health and Life Products, Inc.
Introduction
The entire project will revolve around the three main elements of business management namely, organizing, leading and controlling. The paper will be divided into 3 main sections that will discuss some of the cases relating to the controlling, organizing and leading. Controlling is regarded as the managerial functions for ensuring that the activities in a company are taking place/performed as per the plans.
Moreover, controlling also ensures effective and efficient use of the company's resources for achieving the desired goals. On the other hand, leading mainly includes the informal and the social sources of influence that is used by a leader for inspiring other people. If the managers of a company are good leaders then the subordinates will be quite enthusiastic about accomplishing the organizational objectives.
Managers who tend to be the effective leaders they always first attempt to understand their subordinates' emotions, values and attitudes to a great extent. Organizing is also a vital function of the management and it includes developing a company's structure and allocating the human resources for ensuring the objectives accomplishments. Furthermore, also includes designing the jobs of an individual within the company.
Discussion
Organizing and Role of Louis Montego
The six main areas with regards to the organizing process that Luis Montego needs to address in organizing the production floor both the new project as well as the existing production are as follows:
- Firstly, space is believed to be one of the major problems as 200 sq.ft is needed for the extra line set up as believed by Luis.
- Secondly, tow belts and conveyor are also needed by him because he knows that some line set up and relocation of the machinery needs to be done because those pills of the company need to be produced aside of the sunlight and stored at the place where the temperature is quite low.
- Thirdly, Luis also thinks that they need extra personnel mainly two operators working the night shifts and one pill machine operator who is pharmaceutically trained for the day shift.
- Fourthly, Luis also needs to supervise the new workers quite well and restructuring of the floor staffs also needs to be done.
- Fifthly, it has been observed that sourcing the Chinaberry will be difficult for Luis as the cost of production will increase more than the research and development so he needs to address this area also.
- Lastly, Luis needs to restructure the staffs of the floor because the present job requirements will be modified for including horizontal restructuring where some of the new tasks will be performed in other tasks with regards to the same level (Yoo and et al, 2012).
The areas that need immediate attention is including some extra personnel and also additional space is needed so that Luis can incline towards the extra line set up. Other areas that need an urgent attention is supervising the new workers are deployed for working in the organization.
Leading
The three reasons for the morale problem among the employees of Biotech are as follows:
- Firstly, the older line workers felt that the line workers who were pharmaceutically trained made more money than they did.
- Secondly, the workers also felt that the practice was also quite unfair because Biotech recruited people from outside rather than providing necessary training to the existing employees who are keen in making more salary by taking over the jobs.
- Thirdly, another major concern of the existing workers with regards to the morale was whether Biotech was completely truthful to them for helping the workers advancing in the company (DiMasi and Grabowski, 2007).
The specific ways by which Luis can address each of the morale problems of the employees as mentioned in the above section of the case study are as follows:
- Firstly, for addressing the first morale problem Luis need to tell the existing workers that the pharmaceutically lined workers are making more money because their work is much more critical than they have.
- The second morale problem can be addressed if Luis tells the existing workers that other people are recruited from outside because the company needs people who have different skills for certain types of jobs so that they can excel and if the company excels then the existing workers will be benefited at some point of time (Latham, 2013).
- The company will never deprive them as Biotech has already mentioned that they want to keep employees in the Biotech family for that they will do anything for the employees that also highlight the truthfulness of the company to a great extent.
One critical factor that can act as a major barrier for Louis in order to build morale among the employees and delay Louis's Work further is he cannot make any kind of decisions with regards to the benefits neither he can offer raises in pay for the workers it can be only by the HR in the headquarters. Moreover, workers might refuse to work as they might question about the extra money they will receive or not when Biotech makes additional money by using their efforts.
Controlling and Results
In this particular segment of controlling a data, table was created for displaying the first year production results with regards to the new pill for the company. However, it has been observed that the data is collected for the main purpose of controlling the production output. Throwing light on the above-mentioned discussion the results are interpreted for the new product production chart from which the problem areas will be discussed in the following segment:
Firstly, the cost per 60 pill bottle was quite low in Melbourne as compared with the other countries.
Secondly, time for producing the pill was highest in Detroit when it is contrasted with other countries.
Thirdly, in case of the shipping problems Saupaulo was the highest among the other countries. Lastly, from the table, it has been also learned that the quality control problem was mostly observed in Sanpaolo again.
The areas that showed positive results will be discussed in the below-mentioned segment:
- Firstly, it is the cost per 60 bottles is almost near the standard that is 5.75 maintained by the 5 countries excluding Detroit.
- Secondly, another segment that showed improvement is the time taken for producing the pills remained more or less beside the standard time (Havlícek, Thalassinos and Berezkinova, 2013).
Corrective action
Throwing light on the above-mentioned discussion it can be said that Arther Miller must take some of the corrective action for improving the condition. The comparison of the standard allowed drawing some of the necessary conclusions with regards to the failure or success of the production department for meeting the goals. It has been observed that cost per 60 pill bottle was more by Detroit and time took producing per 60 pill bottle was also more in Detroit.
For addressing this scenario Arther Miller must find ways on how to use correct machinery and equipment, and then he must also find certain ways by which the materials can be sourced in an inexpensive manner, and the product manager should also introduce innovation and creativity in the entire production system of the company.
Review of notes and Potential concerns
The three conclusions that have potential concerns for the long-term future of the project or for the organization and these factors may also affect the long-term strategic planning of Biotech:
- Firstly, one of the main problems that can be taken into account is the lack of space on the floor of the production. The strategic planning in future might get affected by this if the company is planning for the extra line set up.
- Secondly, the quality control was also one of the major concerns for the Los Lunas and San Paulo managers. The long-term strategic planning might get affected by this because from the bad quality control there might be the increasing level of heat in the plant.
- Thirdly, morale problem among the aged employees is also a vital issue for the company as well for the ongoing project.
The older employees want to be trained as other employees who are hired by the company from outside so that they get a huge amount of salary and if it does not happen then they may take a decision to leave their job in this way it will directly affect the strategic planning of the company. The two recommendations that can help the company to address their problems in a better manner are as following:
- Firstly, the HR of Biotech needs to increase the pay of the old workers to some extent so that it can boost their morale. The company may consider this method of training them as training will cost them more.
- Secondly, there should be at least 200 sq.ft spaces on the production floor as highlighted by Luis Montego so that additional line up will not be a problem anymore for them.
Conclusion
The entire project highlighted there of the main elements of the business management that is controlling, leadership and organizing. In case of organizing it has been observed that Luis Montego knew that the new pill production will require extra production lines that required changes in the existing setup. The space in this scenario was a great problem for the additional line set up.
On the other hand, in leadership, it has been observed that the older employees had huge morale problem because the company was not training and raising their salaries when contrasted with the new recruits from outside. In the controlling section, the success or the failure of the production department was judged on the basis of the chart that was presented that mainly showed some countries spent more time had a higher cost.
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DiMasi, J. A., and Grabowski, H. G. (2007). The cost of biopharmaceutical R&D: is biotech different?. Managerial and decision Economics, 28(4?5), 469-479.
Havlícek, K., Thalassinos, E., and Berezkinova, L. (2013). Innovation Management and Controlling in SMEs. European Research Studies, 16(4), 57.
Latham, J. R. (2013). A framework for leading the transformation to performance excellence part I: CEO perspectives on forces, facilitators, and strategic leadership systems. Quality Management Journal, 20(2), 12-33.
Yoo, Y., Boland Jr, R. J., Lyytinen, K., and Majchrzak, A. (2012). Organizing for innovation in the digitized world. Organization science, 23(5), 1398-1408.
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