Mr. Manson being the president of the Dashman Co. is in the position to change the structure of the company from decentralisation to centralisation because it’s the time of World War II & the US armed forces demanded the arms & equipment heavily. The Dashman Co. is making many types of arms and equipment & has 20 plants located in the central part of the country which are run by managers independently. To meet the demand & to overcome the problem of securing certain essential raw materials.
Mr. Manson appointed Mr. Post as the vice president of the company, who had an experience of being a purchase executive earlier. Mr Manson to help Mr. Post asked Mr. Larson to be Mr. Post’s assistant as Mr. Larson seem to be working with the company since years so he was an experienced person of the company who could help Mr. Post to manage his work. Mr Manson tried to help Mr. Post in each & every way possible he gave him enough powers to meet his organizational goals.
As Mr Post had the talent of procuring resources he started with his first step which was to centralize all the company’s purchasing procedure. He sent his decision through a formal channel used by the Co. The decision informs us that any Plant making a purchase more than $10,000 has to inform prior to the head office take their approval. Mr Larson being the experienced person of the company was trying to help Mr Post in his work but Mr Post did not listen to his idea to meet the purchase executives of the plant personally and rejected the idea.
Mr Post followed Autocratic style of leadership. Though earlier some Plants have agreed to coordinate with Mr Post but later on Mr Post could not maintain a check on it. Due to which even after 6 weeks he was not informed from the Plants which shows that structural change initiative taken by Mr Post was not supported by the group of purchase executives. PROBLEM STATEMENT The problem faced by Dashman Co. was the sudden structural change from decentralisation to centralisation.