Sunday, December 2, 2007
MBA 765 ASSIGNMENT 4-4 LEARNING JOURNAL
How may the implementation of action steps differ in the closure stage from the prior stages?
The implementation of action steps differ in the closure stage from prior stages because the leader must consider all stakeholders during this time of uncertainty. Whereas, in other stages the focus may be only on the stockholders or employees guiding the leader to reach desired goals for specific business related issues. During the closure stage, the leader must carefully consider all areas may be affected by any decision. In the early stages, a company can be quite bit smaller, fewer partners, or even a single location. The implementation of moving operations out of a different location would become a lot more involved than a single location. Property and assets become complicated legal issues with more people involved and considered. Hiring specialist to assist with the closure plan can ensure a more positive outcome.
What types of personal and professional risks do leaders run into while attempting to complete the closure process?
Personal risks the leaders run into while attempting to complete the closure process would be lack of motivation from the employees, failure to complete orders, finding jobs for displaced workers. Tax and legal issues related to the closing can be cumbersome especially if the business is closing completely. These issues may become quite involved when it comes to a merger since so many important issues will be addresses as far was employee placement, severance packages, and retirement. A clear plan of the merger must be written out so both parties understand any liabilities for a smooth transition.
What type of closure implementation activity would you find to be the most personally difficult? Why?
Closure implementation of each employee’s future would the most difficult activity. If the company has been in business for a long period of time many of the employees may have dedicated much of their life to the business. I would have to ask myself to consider the impact of my decisions on each one of their lives. It would challenge me to find a way to communicate the end strategy to them so they will stay motivated. Failing to relate the exit strategy at the best possible time could result in problems for the close of business. Not only would emotional issues need to be addressed, business issues would ultimately dictate how and when the news would be related to the employees. There would be no easy way to tell them they are out of a job other than assuring the workers that you are doing everything in your power to help them deal with the change would be the only way to avoid their mistrust in management or the company.
In what ways might the closure stage actually not be final?
The closure stage may not be final when the company has effectively entered into a business venture with larger company with resources to avoid actually closing the business. When just part of a company or a unit is being closed down it may actually prevent the business closure from being final. Considering a new strategy may mean embarking on an acquisition to keep the business alive. This may happen when a company stops manufacturing a certain item and returns to focus of its core business. Or in the case of a merger, the business operations may continue with the help of the acquiring company who may be in a more financial situation or have resources to continue the core business of the company being acquired
.
Should particular kinds of stakeholders be given priority in obtaining the remaining organizational assets? Why?
Investors either public or private should be the first to be considered. Ultimately they have invested into the business and should be the last to lose. It almost seems unfair to say that when employees may have given a lifetime to the business and then walk away with a small severance pay. Ethical considerations must come into play at the end, supplier relationships must be considered since the integrity of the business owners may be jeopardized for future business they may wish to enter into. Any avoidance of financial or legal obligations could result in negative feelings or even legal ramifications.
The implementation of action steps differ in the closure stage from prior stages because the leader must consider all stakeholders during this time of uncertainty. Whereas, in other stages the focus may be only on the stockholders or employees guiding the leader to reach desired goals for specific business related issues. During the closure stage, the leader must carefully consider all areas may be affected by any decision. In the early stages, a company can be quite bit smaller, fewer partners, or even a single location. The implementation of moving operations out of a different location would become a lot more involved than a single location. Property and assets become complicated legal issues with more people involved and considered. Hiring specialist to assist with the closure plan can ensure a more positive outcome.
What types of personal and professional risks do leaders run into while attempting to complete the closure process?
Personal risks the leaders run into while attempting to complete the closure process would be lack of motivation from the employees, failure to complete orders, finding jobs for displaced workers. Tax and legal issues related to the closing can be cumbersome especially if the business is closing completely. These issues may become quite involved when it comes to a merger since so many important issues will be addresses as far was employee placement, severance packages, and retirement. A clear plan of the merger must be written out so both parties understand any liabilities for a smooth transition.
What type of closure implementation activity would you find to be the most personally difficult? Why?
Closure implementation of each employee’s future would the most difficult activity. If the company has been in business for a long period of time many of the employees may have dedicated much of their life to the business. I would have to ask myself to consider the impact of my decisions on each one of their lives. It would challenge me to find a way to communicate the end strategy to them so they will stay motivated. Failing to relate the exit strategy at the best possible time could result in problems for the close of business. Not only would emotional issues need to be addressed, business issues would ultimately dictate how and when the news would be related to the employees. There would be no easy way to tell them they are out of a job other than assuring the workers that you are doing everything in your power to help them deal with the change would be the only way to avoid their mistrust in management or the company.
In what ways might the closure stage actually not be final?
The closure stage may not be final when the company has effectively entered into a business venture with larger company with resources to avoid actually closing the business. When just part of a company or a unit is being closed down it may actually prevent the business closure from being final. Considering a new strategy may mean embarking on an acquisition to keep the business alive. This may happen when a company stops manufacturing a certain item and returns to focus of its core business. Or in the case of a merger, the business operations may continue with the help of the acquiring company who may be in a more financial situation or have resources to continue the core business of the company being acquired
.
Should particular kinds of stakeholders be given priority in obtaining the remaining organizational assets? Why?
Investors either public or private should be the first to be considered. Ultimately they have invested into the business and should be the last to lose. It almost seems unfair to say that when employees may have given a lifetime to the business and then walk away with a small severance pay. Ethical considerations must come into play at the end, supplier relationships must be considered since the integrity of the business owners may be jeopardized for future business they may wish to enter into. Any avoidance of financial or legal obligations could result in negative feelings or even legal ramifications.
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