Foundation of Management: An Analysis of MDIT Case Study Report

This report presents an analysis of the M&D IT Pvt Ltd (MDIT) case study, a medium-sized IT company based in Melbourne. The report examines the challenges MDIT faces, including customer dissatisfaction and slow business growth, linked to issues within its organizational structure and culture. The structure, characterized by an excess of managers and a lack of worker support, is critically evaluated. The report also explores the impact of departmental rivalries and paper-based approval processes. The analysis covers the impact of these factors on both customer and employee satisfaction. Recommendations are provided to address these issues, including restructuring the organization to improve staff allocation, fostering a more collaborative work environment, and streamlining approval processes. The report emphasizes the need for MDIT to adapt to the competitive business market by prioritizing customer service and employee satisfaction.

Running Head: FOUNDATION OF MANAGMENT
Foundation of management
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Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................2
Organization structure and culture along with their impact.........................................................................3
Recommendation.........................................................................................................................................4
Conclusion...................................................................................................................................................4

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Executive summary
This report is focused on the current issue which is being faced by M& D IT Pvt Ltd while
offering their service in the market. M& D IT Pvt Ltd is basically a small size located in
Melbourne, Australia. This report is also focus on the level of dissatisfaction from the customer
end related to the service offered by this organization in the business market. This case clearly
indicates that the work environment of this organization is not good and therefore it is not able to
satisfy the need or demand of the customers. Despite of having such a strong customer base, it
seems that company is not at all serious about their business operation. The organization has
formed such a confused structure that management people are more in number as compared to
workers. As per the study it has been found that this organization is continuously struggling due
to lack of available workers. Organization structure is such it consists of large numbers of
managers and sub managers which has actually generated the confusion related to the authority
among the workers. In addition to this, entire department of the organization are not offering any
kind of support to each other in order to complete the organization objective. They have actually
formed their out departmental goal and have kept them above the organization goal which has
resulted in the competition within the department. Now, department are seeking each other as
rivals instead of helping hand which has directly impacted the overall performance of the
organization. In addition to this approval structure has been formed such that one person has to
take numbers of permission in order to get approval. Approval process is completely paper base
and is directly impacting the time and efforts of the organization.
Introduction
This report is all above the issue facing by M& D IT Pvt Ltd which is a medium size IT
Company located in Melbourne. This company is having around 120 employees and their main
focus business areas are offering IT infrastructure application, IT support and service related to
Cyber security consulting. This organization is having strong customer base but still they are not
able to reduce the dissatisfaction of the client related to their service. In addition to this, report is
also focusing on the issue which is linked with the work environment and the structure
framework of this organization which are offer some kind of support to this overall
dissatisfaction service related to the client (Cameron, Richardson and Siameja, 2016). This report
is also focused on the issues raised by the worker with the help of survey. This organization is
currently facing two types of dissatisfaction related to their internal as well as external services
in the form of customer and employees. Then this report is focusing on the possible suggestion
which can bring improvement in the present situation of the organization so that they can
perform better in terms of client as well as employee satisfaction (Ro, 2015). For every
organization these two factors are considered most important for the growth and development of
the organization.

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Organization structure and culture along with their impact
This case is clearly indicating that structure of the organization is not effective in terms of their
business operation. M& D IT Pvt Ltd is having all kind of business support from its department
but still company is not able to satisfy the client in terms of their service. It seems that the work
environment of this organization is not at all productive because there is a huge gap between the
executives and workers which are creating some kind of barriers related to behaviour, attitude
and egos (O'Neill, Beauvais and Scholl, 2016). In addition to this it has been found that the
organization structure is design at its worst because from the survey it was clear that workers are
not able to manage their work due to less in numbers whereas organization structure is
promoting more numbers of executive in the form of mangers and deputy mangers. M& D IT Pvt
Ltd is actually in the business of IT support service in which worker numbers are in great
demand as compared to the number of executive (Brettel, Chomik and Flatten, 2015). This case
is completely reverse, despite of known this simple fact organization has promote such kind of
organization structure. For an effective business operation it is always important to have a
positive coordinate and corporation between the manager and the workers which forms the main
support pillars of the organization (Naranjo-Valencia et al., 2016). But in this case, it has been
found that the culture in the organization is not at all supportive in terms of team work from
management side as well as from workers side.
At the same time, organization has setup such a structural framework that if a worker has to a
take approval from the management then the worker has to wait for long time in order to
understand whether their thing is being approved or not. This directly impacts the performance
of the worker because they were not being informed that whether the worker has to work on
some issue or not (Kumar, Singh and Kumar, 2017). Worker lives in illusion that if necessary
efforts are made on the issue and after that permission is not being approved then all the effort
and time of the worker will get waste and if worker will not work on the issue and suddenly
permission is being approved then worker has to complete the task within short span. In this
situation, there are maximum changes that worker will overlook the quality aspect in order to
complete the task and this results in the overall dissatisfaction from the customer end related to
services (Soni and Kodali, 2016).
Every organization small or big is having number of department such as human resource
department, finance department, sales department to provide all kind of support which are
essential for the growth and development of the organization. Human resource department
mainly focus on the management of people in terms of recruitment, pay, wages, benefits and
policies formation (Niaounakis and Blank, 2017). Finance or accounting department mainly
focuses on the financial capital of the organization which is considered as backbone of every
organization. Sales department are mainly linked to the generation of sales related to the service
of the organization and are also known as path tracker for other departments. In this situation,
M& D IT Pvt Ltd is also having human resource department, sales department and finance
department but still organization was not able to offer client satisfaction through their business

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operations (Snow, 2015). One thing which is different in this organization was that none of the
department presented in the organization were offering any kind of departmental support to each
other.
In fact the entire departments were seeing other department as threat to their department and
therefore try to find out every single opportunity to show them down. This has generate an
environment of competition within the department which is not at all cooperative in nature and
are offering barriers with in the path of each other in order to gain personal benefit. In order to
generate customer satisfaction a stream information flow is essential which was completely
missing in this case (Raziq and Maulabakhsh, 2015). This rivalry was limited up to the
department zone but it has extended its arms to all the individuals who are associated with each
department and has impacted the overall business operation of the organization. This increase
the chances of denying the approval with the work is connected with cross functional department
in which worker of one department has to take permission to make use of resources which are
under the control of other department in terms of information, man power or approaches
(Nguyen, Dang and Nguyen, 2015). In this case, organization is divided in to small entities
which are working for their personal objective by overlooking the main objective of the
organization which is offer the customer high quality service in the business market.
Because of this internal politics and non-corporative environment most of the workers are not
able to see their future in this organization. Therefore the employee turnover ratio of this
organization is very high as compared to the percentage of recruitment.
Recommendation
In this case, one of the best options for M& D IT Pvt Ltd is to bring change in their organization
structure. Current organization structure of this organization is not effective from business point
of view and is in need of immediate change (Cardinal, Kreutzer and Miller, 2017). In this
situation, organization structure must be such that the good amount of workers will be made
available to offer better service to the customer and there is need of bringing reduction in the
number of manager and sub manger in the organization which are actually adding unnecessary
cost to the organization in terms of direct and indirect cost associated with the organization
(Afsar and Badir, 2016). Availability of large number will ensure the continuity in the business
operation by responding to every query of the customer with right approach. In addition to this,
M& D IT Pvt Ltd organization is also in great need of new business strategy which can align the
objective of the organization with its entire department in order to bring reduction in the separate
department objective. This strategy will help in bringing cooperation and supportive work
environment in the organization because the entire department will automatically work in the
direction of achieving organization goal (Shokri Gazafroudi, Prieto and Corchado, 2019). The
entire department will be well aware that in order to compete their task they have to take help of
each other otherwise it will be impossible for entire department to complete the task on time with
efficiency. This will help in building healthy work environment in the M& D IT Pvt Ltd

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organization for all the employees. Satisfaction of employee with the work environment will
automatically bring improvement in the overall satisfaction in the customer service. In addition
to this, management must concentrate on reducing the paper base work in the organization in
order to bring efficiency in overall business operation because paper base work is linked with
seeking number of approval for a single change which can bring small positive change in the
organization (Chliaoutakis and Chalkiadakis, 2016). This will help in reducing the stage of
approval and which keep the authority with the single person which is heading the particular
department. In this situation, the permission seeker will be aware about the mainly person for the
approval and will not have to waste any time for seeking approval. In addition to this, this
organization must work for improving the relations between management and the workers by
creating a trust environment which will be free from ego, conflicts and positional differences and
will only focus on improving customer quality service.
Conclusion
Due to globalization every organization is free to enter in to any kind of business they want and
therefore it has increased the competition within the business market. In order to remain
sustainable in this business market every organization has to focus on their important aspect
which can offer them competitive advantage over other organization in this business market.
Same thing applies to M& D IT Pvt Ltd which has to understand the current demand of the
market and has to introduce necessary changed in organization. Organization structure must be
such that the good amount of workers will be made available to offer better service to the
customer and there is need of bringing reduction in the number of manager and sub manger in
the organization which are actually adding unnecessary cost to the organization in terms of direct
and indirect cost associated with the organization. Organization must focus on reducing the
amount of paper work in the organization. Organization must offer health work environment to
the workers in terms of cooperation, safety and security in order to bring satisfaction in the
workers so that they will not leave organization. Organization must link all the departments with
a single line of node which connects the departments with the main objective of the organization
without any conflict.

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