Organizational Reorganization: A Case Study of LaCroix Limited

Signs Indicating the Problems that Existed At the Lacroix Limited

There was nothing more captivating to the founder of the LaCroix Industries, Gilles, as a quality, diligently crafted wood frame window. However, the signs that pointed towards the beginning of problems at the corporation became apparent when the management decided to employ a new leadership style.

When the founder, Gilles, decided to work on the expansion of the organization to other regions, he focused his concentration on the survival and success of the Company and therefore he consulted his employees and together they arrived at a complex decision of selling a huge share to the Build-All Product Inc., which is a multinational corporation with an extensive experience in transnational marketing of construction products. Due to the magnitude and the complexity of this step, LaCroix was almost entirely engrossed with the developers which prompted the hiring of a new VP, who managed production, and that marked the beginning of the negative changes that were noted. The symptoms included;

  • The deviation from the company’s initial goal of quality to concentration on the strict alterations regarding routine production processes.
  • A reduced concentration on inventory controls due to demanding inventory guidelines which provided stern procedures regarding the use of supplies for every period.
  • The reduction of employee motivation which made most of them quit.
  • Increased number of defective windows collected from the wholesalers and developers.

Causes of Underlying Problems from a Leadership Perspective

The main reasons why the company faced reduced staff motivation and reduced quality of products were because of the negative change in direction, a change introduced by Vlodoski, who was the new VP.

  • Previously, the corporation had been using a very effective style of transformational leadership which made the employees very motivated, engaged and contented with their lines of duty.
  • The leadership style employed by Vlodoski tampered with employees’ engagement. The new VP did not use a participative style of leadership which called for employees’ involvement in critical decision-making Lacrosse freely and occasionally chatted with his employees amidst brief visits to the corporation; he thanked them for the hard work and commitments, their views regarding the best way forward for the company and any other issue where he might have needed feedback on.
  • The new VP, on the other hand, did not exhibit any commitment to the company’s vision of ensuring super quality windows. He employed a style of leadership which ignored the competencies and experience of the employees and the leader, therefore, kept on commanding them on what to do, where and when to perform their duties. The VP, therefore, initiated the responsibilities, the projects, and the ideas and forwarded them to the employees, after which he specified his desired parameters, standards and strict deadlines for each task.
  • The new VP was more interested in quantity, unlike Lacrosse who was committed to ensuring quality. This, therefore, showed conflicting visions. He forced the staff members to work under his rules, a procedure typical of the military leadership and traditional seniority-oriented line. Vladoski ignored all the procedures the employees were familiar with and applied his personal ideas, a step which resulted in the production of faulty windows.

Vladoski took away autonomy from the experts, introduced stern guidelines and to make matters worse; he never left his office. The employees were forced to quit, expressing the significance of effective styles of management and employee satisfaction. The new leadership did not value the employee feedbacks regarding the improvements necessary for continued success.

Redesigning Organizational Structure to Overcome the Obstacles

The LeCroix Limited Inc. organizational structure refers to the methods used for effective workflow, coordination, labor division, and communication powers which offer useful guidelines to the routine operations of the organization. The structure additionally dictates information and financial aspects among other priority components. Therefore, it is important to redesign the labor division aspect and coordination function to improve the operations of the company.

The company must ensure the appropriate and participative division of labor to the qualified personnel by setting up specialized departments to take care of quality control procedures and other metrics. Participative division of labor will make sure that employees are consulted, and therefore, they are allowed to specialize in jobs that best suit their professional expertise and interests. If this step is applied, the employees can quickly master their lines of duty and lots of time is saved from relocating from one duty place to another. Finally, appropriate and convenient labor division will save a lot of money that would otherwise be used to train the staff members.

On the other hand, effective coordination ensures that all the communication channels are open, and communication can freely flow all the levels of management. Proper and unrestricted coordination also necessitates a faster agreement on important decisions. Moreover, the company should only use job specialization to some extent to avoid complicating the coordination ability of the organization.

The team should also use a decentralized system of management; this system will ensure that more and more qualified and experienced employees are involved in decision-making processes. Decentralization will also lower the pressure encountered by top management and increase the ease, efficiency, and speed of coming up with better decisions.

What Gilles Should Do In the Prevailing Circumstance

Gilles should ensure the mentoring of leaders who are more focused on the perspectives of the employees regarding significant steps were taken by the organization. He should reinstate the participative and democratic leadership styles which involve the employees’ views and uphold respect that should be attributed to their expertise and professional experiences. He should continue to involve his employees in small friendly discussions, or even in breakfast parties like he did before. Additionally, he should also ensure that he rebuild the trust, and emotional connection he had with his employees before the coming in of the new VP by giving them his proposed future plans and asking them for their advice.

Gilles should breed creative collaborations for the active team works to be cultured once again. The team members and all other employees should be treated with respect in equal measures to enable them to have the satisfaction they deserve. Finally, Gilles should only look forward to partnering only with corporations or individuals who demonstrate absolute consistency with his primary goals and objectives. Therefore, before partnering, an extensive research should be carried out to ensure a business relationship like the one that existed with the Build-All company, does not repeat itself.