Archien V.

Labustro

MBA 209

Case Study: Triple State Hardware Corporation

Questions:

1. Based on the details, what kind of organizational structure does Triple State have?

2. Considering that length of service is an advantage that leads to high product knowledge among the
sales team, can you think of some ways by which the company can retain its sales staff?

3. If you were to run Triple State, can you devise a plan of action that would resolve its problems and not
just bring it back up to par, but also prevent these problems from happening again? Elaborate on your
plan of action.

4. How would you address Philip's need to resign and live a peaceful life? What should be done to get
him to leave the business with peace of mind?

Answers:

1. Based on the given example, the type of organization that the triple state hardware corporation
is is the functional organizational structure. In this type of structure, the organization is divided
to put the specialists in the top position throughout the enterprise. This is an organization that
we can define as a system in which functional departments are created to deal with the
problems of business at various levels. In the given case, the organization is managed by friends
and each of them has its function. Phillip serves as the overall operating manager, oversees the
issuance of the purchase orders, serves as the cashier, hires, and does other human resource
management activities. Bea on the other hand, serves the as the president, overseeing the
overall operations of the company and in charge of monitoring and safeguarding the company’s
accounting records. Chris served as a consultant, and he was not directly involved in the
operations. Lastly, Jena was the Vice President and acting treasurer and was responsible for
dealing with suppliers. A lot of other big companies use this type of organization like Starbucks,
and Amazon. Every type of organization has its advantages and disadvantages. For functional
organizational structure, one of its disadvantages is that it is possible to have a lack of unit
coordination. this means that though the functional units can perform with a higher level of
efficiency, however, there could be difficulty working well with each other thus, cooperation is
compromised. Also, Management issues may arise because it is more bureaucratic, and the
functional organization is not accountable to each other and poor horizontal coordination within
the department may occur. Employees’ motivation is greatly affected by a lack of innovation
and restricted views of organizational goals. This structure can be rigid, and the standardized
 ways and high formalization can hamper or impede faster decision-making. Lastly, the functional
organization may have unhealthy competition working with the other areas. There may be a lack
of understanding as to how significant that specific are to the company. In one example, there
may be a request from the marketing department that may not be prioritized to attend to the
concerns of the sales department by adding more people. Ideally, the companies decide based
on what is urgently needed. And for the advantages, Because of people’s expertise, workers
with specialized skills can perform tasks quickly, efficiently, and with more confidence, while
reducing of work-related mistakes. The clear nature of the career path within the functional unit
makes it possible for employees to be highly motivated to advance their careers as they move
up within the hierarchy. This will keep them aiming for advancement and development. This can
be an ideal structure for small businesses that focus on one product or service because you can
maximize performance by encouraging peer cooperation among different units at various levels
of management through supervision and coordination. Specialization leads to operational
efficiencies and enhances productivity levels.

2. In the given example, there can be several reasons why the employee will decide to leave the
company. But it can be helped when an organization will be sympathetic and will listen to its
employees. A lot of employees complain that some of their efforts are overlooked. So, I suggest
that companies provide recognition and reward regularly to remind employees that they are
appreciated and help them to balance short- and long-term goals. People will stay with your
business if they have a reason to. If you want to keep your good people and keep them
motivated, it's worth starting an incentive program. Companies should also provide flexibility,
allow employees to speak their minds, offer the ability to grow, and provide proper
compensation. They can provide learning sessions to improve employees’ knowledge and to
make them more competitive in an ever-changing environment. If possible, provide de minimis
benefits for employees. We can never know how much these small things can help the
employees. I will also provide HMO including some of their dependents. In my personal
experience having HMO is a big help, especially with high hospital bills and such.

3. If I will run Triple State Hardware, there are actions that I will do to solve some problems that I
know can help the company. First is that I will identify the problem, I think that it is important to
know the existing problems and identify possible solutions. I will also get the opinions of the
existing employees, most of the time, the employees on the operations can provide a more
accurate solution or opinion because they experience those firsthand. It is important for
employees to feel at ease and trust the management so that they will not be afraid to speak
their minds. One of the problems of Triple State is the Lost sales, the unavailability of sales
assistance diminished customer satisfaction with their products and services. Resignation of
employees that created inefficiencies. I would devise a plan that can build friendships among
your sales reps. Encouraging friendships among team members can be a very effective strategy
for reducing agitate. Employee opinions are important because employees provide a big
contribution to the company. Also, I will provide training to make them more competitive, and
more productive. I will also make sure to have a backup plan to prevent the recurrence of the
problem.
4. Phillip leaving the company should not be taken personally, because even the most dedicated
employee could resign if they received a much better offer and a chance to grow their career.
Based on the example, he handles a lot of tasks, and it can be draining and exhausting on his
part. But before that, he should make sure that the transition will be done smoothly and have
the turnover. Through this, the person who will replace him will have an idea of how the process
even if it will be different.