Rendell Company Case Study Essay -- Business Case Study Essays, solut

Rendell guild Case Study Executive SummaryThis track allow for give us a clear perspective as to what the optimal geological formational structure that suits Rendell Company plus some superfluous control system in attaining the companionships main objectives. We will be also tackling the roles, functions and responsibilities of a restrainer in an scheme. This case takes us into Rendell Company which is contemporaryly having problems surrounded by the corporate control condition and the divisional controller. We assessed the advantages and disadvantages of the organization structure of Martex whether it can be applied and be implemented to Rendell Company in order to resolve the problem. Through the frameworks and issues, we concluded that while original setup would cause some budgetary discrepancies because of the lack of loyalty between the divisional controllers to the corporate controller, changing the organization structure of Martex would cause a disparity between t he division manager and the divisional controller thence resulting in an anxiety in their working environment which is too pricy as compared to maintaining the menstruum setup.I. Case ContextRendell Company is experiencing some difficulties in implementing its modern control techniques due to the irking relationship between the divisional controller and the corporate controller (Mr. Bevins) resulting in an added fat to the organizations budgets. Now, with these problems, Mr. Bevins is elicit with the organisational structure of Martex if this will be the solution of the current problem. II. chore definitionHow Should Rendell resolve the current reporting relationship of the corporate controller and the divisional controllers to achieve goal congruence? Is the controller relationship of Martex ameliorate than that of Rendells current organizational relationships? III. FrameworkThe group worked out on these following considerations in resolving the issue1.First we identify the co mpany objective which is to achieve profitability and growth.2.Attaining goal congruence within the organization is important to support the companys main objective.3.Analysis of the current organization and reporting structure by evaluating its strengths and weaknesses.4.Assessment of the proposed organizational set-up (patterned from the set-up of Martex) by evaluating whether implementa... ...ke more(prenominal) active involvement in the budgetVI. Basic defense Since an accounting system is already in place in Rendell, careen may not be easily accepted by the pertain divisions. Such changes may cause a dysfunction in the organizational structure since making division controllers report directly to corporate controller might cause destabilization in the structure of authority in the divisions. Loyalty issues may also arise because division managers may find by-passed or spied-upon which may cause more problems in the long run. Thus, more importance should be given in preserv ing the power structure in individually division. It is better that the company face the problem of having fats in the set down budget rather than give up order in each division and jeopardize the established line of authority. As a conclusion, maintaining the current setup would be better than changing it into the structure of Martex in achieving the goals and objectives of Rendell Company.VII. Operationalize / Implementing our decisionImplementing our decision would include retaining the current setup and adapt changes (as mentioned on our decision) from Martex to tighten the fat in the budget.