Yellow Auto: Analyzing Organizational Development and Challenges

This report provides a comprehensive analysis of the organizational development challenges faced by Yellow Auto, a car dealership. The report identifies key issues including cultural conflicts, technological deficiencies, and structural problems. The leadership style of the top management, particularly Can Sale, is highlighted as a major contributing factor to employee dissatisfaction and inefficiencies. The analysis covers problems in various departments, communication issues, and lack of technological support. The report also answers specific questions about the change management process, employee resistance, and the benefits of using external change agents. The conclusion emphasizes the need for transformational leadership, improved technological infrastructure, and enhanced employee satisfaction to overcome the challenges and improve the company's performance. References from various academic sources support the analysis.

Running head: ORGANIZATIONAL DEVELOPMENT
Organizational Development
Name of the Student
Name of the University
Author Note

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Executive Summary
The purpose of the following assignment is to determine the management issues and challenges
faced in Yellow Auto. The organization has been chosen because some serious management
issues and challenges have been noticed in this case study. The challenges being noticed in this
have to be overcome so that the employees secure and they can work in a safe environment. The
employees have to be satisfied with their job roles. The challenges have been identified and
described thoroughly here. The questions being provided in the case study are answered as well.
The key challenges havew been summarized.

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Table of Contents
Introduction......................................................................................................................................3
Identification of problems................................................................................................................3
Cultural issues..............................................................................................................................4
Technological problems...............................................................................................................5
Structural problems......................................................................................................................5
Answer to Question no 1.................................................................................................................6
Answer to Question no 2.................................................................................................................6
Answer to Question no 3.................................................................................................................7
Summary of the entire matter..........................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
The following paper focuses on the fact of the different issues that arose within the
organization. The organization chosen to complete this assignment is Yellow Auto. This
organization has been regarded as the car dealer of the famous automobile company, Renault. As
Renaiult has a good worldwide market and it dominates most of the regions in many countries,
the same goes with Turkey too. The company Yellow Auto was designed to help the customers
who thrive for automobile industry parts. The customers have been increasing in the place they
had operated. The area that they served was Bergama, which was a small town near Izmir,
considered as one of the biggest cities in Turkey. The condition was much favorable for the
company as they got good profits. Later on, problems began to arise and it affected the
productivity and sales (Chan, Li & Pierce, 2014). These things hampered the company’s growth
rate as a whole. The problems that arose in this situation will have to be discussed in this paper.
Identification of problems
The Yellow Auto had been facing many problems that had affected their business in large
ways. These problems had cause great losses and hampered their profit in great many ways. The
situations turned in such a way that the style of leadership of their top leader Can Sale.
According to the case study, the two sons of the founder Deniz Sale took over the business and
they took control of the management of the company. The two sons, Can Sale and Caner Sale
had put their assertion in the management procedure so distinctively that the decisions and the
opinions of the employees and the heads of other departments were scarcely looked after
(Blankenship, 2017).

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As a result, some serious problems had begun to arise within the company. The
employees were not at all satisfied with the ways they were treated. They wanted more freedom
to take important decisions so they could justify their job positions (Mowday, Porter & Steers,
2013). The numerous problems that had arisen had its root in the wrong management processes
that was occupied by the top management consultant Can Sale. His daughter Asli Sale was given
the duty of the sales director after it was noticed that she was worthy of working with people.
These problems were of different kinds like cultural, technological and based on structure as
well.
Cultural issues
Here, the cultural issues define the problems and issues that arose because of adopting a
wrong organizational culture (Alvesson, 2017). Any company that adopts a wrong organizational
culture suffers from different managerial problems on the long run. At the beginning when Can
and Caner Sale took over the management control from their father, they had set up the structure
and the departments in a good manner. They had employed more employees that counted up to
52 as they shifted their company to Izmir.
The different departments that were divided between the employees were general
administration, sales, marketing, in-store sales, active sales and many others (Tanner &
Raymond, 2012). These departments were designed to act effectively and make profits for the
company. Unfortunately, the departments could not cooperate with each other and the Can Sale
used to interfere all the matters regarding any issue. The employees and the managers had a lack
of understanding and communication between them. The employees even bypassed Asli Sale and
wanted to work directly with Can Sale as they knew Can Sale would interfere in their works at a
point of time. The in-store sales team and the active sales team had a conflict between them that

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added fuel to the burning issue of communication problems. The employees were also not
satisfied with the physical conditions of the warehouse and the office. They were discontent
about the job satisfaction as well. The customers were also not happy with the behavior of the
employees of the company (Sirianni et al., 2013).
Technological problems
There were some technological problems in the organization as well. The job roles of the
sales team employees indicated them to make the calls to the potential customers and take the
replies of the customers on note. These things would help them to keep a register of their
progress in capturing the market. On the contrary, these phone calls were of no use because those
phone calls could not be monitored effectively. The regular phone calls were not useful as well
since the entire database of the company was backdated (Cherry & Jacob, 2016).
The physical condition of the organization was very unhygienic and the heating and
ventilation system of the company was not proper as well. No technological support was sought
by the top management. The inventory control in the modern times has to be computerized but
this was not the case there (Cherry & Jacob, 2016). There were no computers to manage the
inventory control. As a result of this, there always seemed to be missing parts in the inventory
counts as they were either lost or stolen. On the other hand, spare parts personnel were unable to
know the exact inventory levels. The repair of the spare parts was delayed because of these
problems.
Structural problems
Some problems in the structure of the organization were also being faced by the Yellow
Auto. The company could not imply the proper policies for the customers as well as for the

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employees. The structure was divided into many parts but the confusion had arisen between them
so the conflicts were there as well (Hill, Cronk & Wickramasekera, 2013). Yellow Auto could
not follow the rules and regulations dictated by the Renault in the issues of financial reporting,
customer satisfaction, achieving the target sales and many more. They could not set their target
segmentation markets effectively that resulted in the loss of customers. If they had set those
things properly, they would have set their target audience by their age, education and income
level. The employees were not properly educated for the job roles they were performing then.
The sales department became the rivals of each other and the same thing occurred between the
after-sale services and spare-parts departments.
Answer to Question no 1
The change within the company began from 2001 with the help of the management
experts and a team of academicians (Hayes, 2014). The change for good was always welcome
and the employees would feel better if the conditions improved within the organization. The
team spirit had to be improved and the participation of the employees and the other departmental
heads had to be taken into account as suggested by the expert tea. This type of change must be
transformational rather than transactional. If the employees would be given the exact tasks
according to their expertise, they would be benefitted highly (Belbin, 2012).
Answer to Question no 2
It is almost without any doubt that the employees should not show any kind of resistance
in the change within the company. The employees have been victims of much injustice within
the company for the autocratic leadership of Can Sale. The employees have long been waiting
for a change in the proceedings that have been prevalent in the past years (Boddy, 2014). This

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would give them the opportunity to do what they want and share their thoughts about the tasks to
be performed. This free minded thought process of the employees would be very helpful indeed.
This is why they have welcomed this change.
Answer to Question no 3
There have been many benefits of working with the management experts as the external
change agents. Those experts have a high degree of qualification to direct on how they could
change the management running systems to develop the conditions in this critical challenging
scenario. This would be very interesting indeed. The experts have sorted out some ways about
the ways to change the management process and improve it (Goetsch & Davis, 2014). The
improvement in the management includes participation of the employees in the decision making
process, the job satisfaction of the employees is an interesting fact that the employees are much
concerned about. The employees will feel relieved as they will be able to view their important
opinions (Goetsch & Davis, 2014).
Summary of the entire matter
The entire case study has focused about the different issues and challenges in the Yellow
Auto. The changes to curb these problems have been addressed in the case study as well. The
different challenges include the cultural, technological and structural challenges. The
organizational culture of Yellow Auto has many faults within itself. The top management
consultant can Sale has not been able to direct the approaches in the proper way (Goetsch &
Davis, 2014). The technological problems include the absence of computers in the inventory
control. The structural issues like the job dissatisfaction issues and other factors have been

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identified as well. The miscommunication between the employees and the management is also a
relevant problem in the organization.
Conclusion
The paper can be concluded by saying that despite efforts from the management, Yellow
Auto has been running in loss because of the different kinds of challenges addressed. The
management of the company will be in great distress because they have directed their approaches
in the wrong way. The technological approaches have to be well directed so that Yellow Auto
can keep proper records of their new inventory. The employees have to be provided with job
satisfaction and the leadership style has to be changed from autocratic to transformational.

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References
Alvesson, M. (2012). Understanding organizational culture. Sage.
Belbin, R. M. (2012). Team roles at work. Routledge.
Blankenship, L. V. (2017). Organizational Decision-Making. The Administration of Health
Systems: Comparative Perspectives, 19.
Boddy, C. R. (2014). Corporate psychopaths, conflict, employee affective well-being and
counterproductive work behaviour. Journal of Business Ethics, 121(1), 107-121.
Chan, T. Y., Li, J., & Pierce, L. (2014). Learning from peers: Knowledge transfer and sales force
productivity growth. Marketing Science, 33(4), 463-484.
Cherry, B., & Jacob, S. R. (2016). Contemporary nursing: Issues, trends, & management.
Elsevier Health Sciences.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Hayes, J. (2014). The theory and practice of change management. Palgrave Macmillan.
Hill, C. W., Cronk, T., & Wickramasekera, R. (2013). Global business today. McGraw-Hill
Education (Australia).
Mowday, R. T., Porter, L. W., & Steers, R. M. (2013). Employee—organization linkages: The
psychology of commitment, absenteeism, and turnover. Academic press.

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Sirianni, N. J., Bitner, M. J., Brown, S. W., & Mandel, N. (2013). Branded service encounters:
Strategically aligning employee behavior with the brand positioning. Journal of
Marketing, 77(6), 108-123.
Tanner, J. F., & Raymond, M. A. (2012). Principles of marketing. Flat World Knowledge.