Managing Organizations and People

This document discusses the concept of managing organizations and people. It covers topics such as bounded and unbounded problems, finding alternative solutions, and the importance of commitment and consensus in problem-solving. The document also explores the 3C's of decision making and the challenges of finding solutions within constraints. Subject: Management, Course Code: B628, Course Name: Managing Organizations and People

Running head: MANAGING ORGANIZATIONS AND PEOPLE
MANAGING ORGANIZATIONS AND PEOPLE
Name of the Student
Name of the Organization
Author Note

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Answer to Question 1
Bounded problems are mainly those problems which are known as well as identified and
the possible solution is also known. On the other hand, unbounded problems are mainly those
which are totally unknown as well as unidentified. In case of an unbounded problem, possible
solution is also unknown. As per the B628 material seen by me which is provided, it can be seen
that the problem is known as well as identified. Move to a facility which is more expensive has
totally doubled the expenses if Frank for space and also the work loss has reduced the hour base
upon which the director Frank can spread his expenses which are fixed like space. Therefore, due
to this reason, it can be said that Frank’s problem is a bounded problem (Macário 2011). He is in
such a position that he can neither get back the lost work not he can relocate to the quarters
which are cheaper. There is a need that he should find other alternative option for achieving the
solution to the problem by thinking of some other way of solving the seen problem besides only
just fixing the cause of it (Sandberg and Targama 2007). Frank cannot act unwisely by just
complaining about the effect of moving to the new quarters on the high rates. Therefore, he must
find other suggestion receptive and say that the increased rates is posing a serious problem for
the customers and also for the future viability of finance of his part of division (Das 2017).
As per my view, it is required to make changes for implementing any solution and therefore it is
very much important to build commitment to the solution because it will help in developing
consensus regarding the problem definition (Lowe 2010). Therefore, Frank must arrange some
works which are reassigned from other division to that of his. This may have effects which will
be beneficial for expanding his productive hour’s base and thus rates will be lowered and
customers will be pleased. It is necessary to check whether his new rates are also lower than the

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rates mentioned in the division from where he is going to obtain the extra work. His main move
is to shift the burden of the cost from the programs he recently supports to that of the ones which
are new. Once a solution has been thought of, it also becomes important to bring out a particular
plan of action for it as well.
Frank gets an idea and thought of reducing the expenses which are fixed by about
$225,000. The simplest way of doing it can be the reduction of the space amount which his part
of division occupies. He thought of dumping the 5000 square feet are which the group occupies
in other building at a rate of $43.50 which may have exactly the desired and expected rate on the
expenses and the rates of Frank. It is noticed that there is another problem as well. As Frank
raises the consolidation of space issue during the move, two different objections surfaced. First
objection is that the 15000 square feet area will not be able to accommodate all the staffs of the
division and the second objection is that some of the adjoining building programs require special
or extraordinary amount of space of table top at the main and the peak time of processing for
storing a number of trainee files history temporarily. Frank is very much confident about the fact
that the work loss and the associated nineteen percent of the reduction of staff will totally diffuse
any kind of objections about the area of 15000 square feet and thus be able to hold all the people
and his surety level is high about overcoming the objection regarding the space of table top
which is needed at the highest period of processing. As seen from the perspective, it is noticed
that the requirement of the table top space reflects the recent ways of looking at things. Frank
sees the table tops as a large and horizontal system of filing which is considered to be one
consuming a lot of the space of floor. One of the Frank’s associates of staff is researching the
availability as well as the sustainability of the systems of vertical filing. By the end of the week,
it is noticed that the verdict is in and the vertical systems of filing are available. They will work

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and the cost has become less than $20,000. They also occupies about one-fourth space of the
system of table top.
Now, the next problem of Frank is to convince his boss so that it makes sense in spending about
20,000 out of pocket for saving 225000 in chargebacks internally. It is noticed that he decides to
say that the expenditure is warranted like an experiment which may have excessive payoff in
terms of the saving of space in divisions which are larger. Now, finally two final obstacles still
remains. First one is to go along with the purchase of 20000 which is not even budgeted and the
other is to get the divisions of facilities for agreeing to take move physically as fast as possible.
Receiving commitment of corporate is considered to be easy, data as well as arguments are laid
out and questions are asked as well as answered. Then, finally decision is made. The division of
facilities labour under a schedule which is punishing and needs a little bit of more explanation as
well as justification before agreeing to change the priorities. The managers can clearly observe
the sense of what is actually being proposed and they also bought in.
The above problem solving procedure clearly brings about important lessons which are
very much important to remember. The case study shows that both commitment as well as
corporation is very much required for solving problems in any setting of organization which is
shown by Frank who has sold his problem view as well as his solution view. As it always seen
that it is very much important to sort wheat from chaff for speaking while analysing any kind of
problem. The customers of Frank who are seen to have been complaining about the increase in
rate is just like noise. In fact, the real issue for them is whether or not that charges are increasing,
not what is happening to that of the rates. Frank is aided by the development of a model of the
framework of the variables and relationship between them. The problem which is seen to be
attempted by Frank is embedded as per the structure is concerned and so is its solution. This

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model is seen to be critical not only in just focussing on the cost components which are fixed, but
also in the efforts made by Frank in convincing others as well in adopting his point of view of
the main problem and of the appropriate solution. For solving just one single problem, Frank has
to go through a number of obstacles along the path. Lastly, both time and luck along with the
knowledge of the situation has also played a big role in achieving him a great success. It has
been seen that Frank has totally consolidated his part of division in one single building and has
carved a quarter of a million dollars roughly out of his load. Also limitation has been made in the
increased amount of rate to a great extent instead of the 20% which is forecasted. He has even
submitted a proposal recently to an agency within the state for providing similar services to those
who provides programs in their own company respectively. Thus, it is seen that if he wins the
contract then he will definitely be able to add to his hour base without increasing his expenses
which are fixed. It can also be possible that the rates which he is seen to have charging on his
customers may also be reduced.
Answer to question 2
While covering the base of taking decisions regarding the several options of solutions, the
3C’s of decision making is considered which includes choices, constraints and criteria. It is seen
that both choices and criteria are issues which are straightforward, whereas constraints can
complicate things a lot (Cleden 2009). It is quite easy for figuring out a solution to any particular
problem, whatever may be its scale, complexity or scope. It becomes very much difficult to
clearly figure out a problem’s solution which will work out within the constraints which are
posed by the situation. In the case of Frank, a lot of simple solutions can be presented themselves
in a right way. If moved back into the old, it is noticed that the facility is inexpensive and if
moved into the new, the same facilities which are inexpensive are seen. It is needed to run out

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and search for more work for replacing the work which has been lost. This is not that much easy
as it becomes difficult and even take a lot of time in obtaining a new business. What Frank finds
out is that the fact which makes solving a business problem is difficult and not just simply
finding a particular solution for it. It also involves the one which basically fits the situation
constraints. Problem solving is considered to be a political endeavour. Therefore, it is very much
important to develop the consensus related to the problem definition. If any failure is seen in this
case then this may result in the effort of problem solving being tracked by side as well as
derailed. It is always noticed that during any solution implementation there are a number of
changes which goes on in and to the organization. It becomes very much important to develop a
strong commitment to solving the problem and finding a particular solution for further
development of the consensus related to the problem definition. It is usually accepted that the
organizations which are complex, several changes are made in one place then effects are felt
somewhere else which includes some places which are not anticipated. For an instance, Frank
may be able to reassign some of the work from some other division to that of his. This is going to
have effects which will be beneficial for expanding the base of the productive hours and thus
rates are lowered and customers are also pleased. Until the new rates of the division of Frank are
lower than the rates which are recently present and the new rates are lower than division rates for
which the extra work is being obtained, about all he accomplishes as a result of shifting the
burden cost from the recent programs which he supports to the one which are new. This is not
going to work out. He is seen to have been developing a solution commitment. After a solution is
settled, an action plan is specified for making things happen. By depending upon the seriousness
as well as the scope of the problem, an advanced troubleshooting and planning of contingency
may or may not be called.

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Frank very well knows about the fact that the work loss and the increased charges of the
area are greatly contributing to his problem. He is not sure about the fact that what actually the
effects of each are. For sorting out things, he has an analyst of budget who is responsible for
constructing a model of the arithmetic operations whereby the program charges are to be
determined and data from the past three years are to be provided to him. After reviewing both the
data and model, Frank immediately notes that the category of allocations is the hit which is the
hardest. He notes that the main focal point for all the problem he is facing which is the rate of
load is not the primary concern. The bottom line for the managers of program mainly consists of
program charges and not the rates. Here, the charges of space is showed up and the dollars of
load are utilised for determining the rate of load. The rate of load may go up by 10, but if the
productivity is increased by a little amount and then the hours may go down by a like amount as
well and the charges will still remain same. At first, Frank asks his analyst of business for
comparing the actual program charges with that of the budget fixed at the year beginning. The
results which comes out is spotty. It is seen that most of the programs are at or under budget with
some under budget and some are over significantly. By consulting with the two managers it is
revealed that four of the programs which are over budget have incremented in volumes which, by
percentage outstrips the cost increase. Most of the customers of Frank have suggested him for
reducing staff as a way or process of expense reduction. Frank knows already that this is not
going to work at all. A number of retirements as well as postings to other divisions has enabled
Frank with an effect of about 19% of reduction in regular staffs during the first half of the year.
He even refused to go any of the positions which are vacant and get filled. He also refused to
direct both the supervisors as well as the managers to make use of the personnel which are
personal and the agency. As a result, it has been seen that there is no excessive capacity for

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speaking. It is noticed that reduction of staff will only have the effect which is not undesirable of
making it impossible for performing the work of the division which is remaining. After thinking
of so many options and after understanding the situation he comes to several conclusions. He
sees that the division has become much smaller due to the work loss and the number of staffs are
reduced, but the expenses which are fixed have not reduced correspondingly at all. The staff is
much more productive and the program charges are in the line with revisions which are
subsequent or budgets. This increment in the productivity has actually made the worst situation.
The program charges are not that much sufficient as it has to be for recovering the expenses of
division as greater or same work is seen to be accomplished in little time. Therefore, it is noticed
that the rates will have to be raised up by the fiscal year end. It is even seen that the much more
worse is foreseen by the next year which is shaping to be a great problem. If the expenses which
are fixed are not decreased then the rates for the next year will also have to be raised by about
10% over the end of the year figures after the increment in the rate for recovering what is seen to
be projected to about $225000 under the recovery. Therefore, the final goal of Frank or his
solved state is the reduction of the fixed expenses by around 225000 and his actual search is for
finding a path or way of doing that.

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