Situations for analysis
Lion Office Systems PLC Company Background
Lion Office Systems is a small but dynamically developing company in the field of production and servicing of office equipment. Over the years, the company has gone through numerous mergers and acquisitions. Now the policy of further expansion has replaced the desire to strengthen its positions. The company has three divisions and a central office, employing 171 people. The number of staff in the central office and each of the units is reflected in the flowchart. The central office and department of office equipment and micro-computers are located in the northern vicinity of London. The office supplies division is located in the city 10 miles north of London, and the distribution unit is in Essex. The company has a divisional structure, presented in the following form.
Staff composition and distribution
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The company has the following staff structure:
• central office: managing director, financial director, administrator, head of staff (only took office) and 25 employees of administrative (clerical) positions;
• office equipment and microcomputer division: director of the division and 15 leading employees and specialists, 22 people in the department of photocopiers (sales managers, representatives and service engineers), 27 people in the micro department -EVM (sales managers and representatives, technical support staff);
• office supplies division: head of the unit and 4 administrative managers, 5 people in the purchasing department, 17 - in the sales department (including 2 representatives) and 15 warehouse workers (including 4 drivers)
• the distribution unit: the head of the unit and 4 employees of administrative (clerical) positions, 20 production workers (printers, bookbinders, etc.), 7 sales staff (including 1 representative) and 3 Procurement Officer.
Production and personnel climate
The nature of production and collective relations in each of the company's divisions can be characterized as follows:
Central office. In order to achieve a high degree of integration of various divisions, management decided to concentrate all financial and administrative operations of the company in the central office. The important role of the staff was highlighted by the appointment of a permanent head of staff, whose duties included the establishment of common procedures in key personnel management issues, such as labor remuneration, disciplinary procedures, complaint procedures, staff effectiveness. Employees of administrative (clerical) posts - this is mainly residents of nearby areas. Labor turnover is low. The level of remuneration of labor is competitive, although it can not be called high.
Division of office equipment and micro-computers. The main function of the department of sales (maintenance) of photocopiers is to support market positions, although the company is worth a lot of money. The salary is moderate, although sales managers are offered good interest on sales. Administrative (clerical) staff are paid at competitive rates. The turnover among employees of such positions is not high; among representatives and service engineers it is higher. The sales department of micro-computers is expanding, new sales managers are being searched for, good interest rates from sales are offered at a moderate salary rate. Although most employees are loyal to the company, nevertheless there is a relatively high turnover among technical personnel and company representatives, where a significant number of specialists are young, ambitious and highly valued among competitors.
Office: supplies division. For businesses in the department of office supplies oriented at consumers, business is expanding. The company managed to timely increase the market share in London and its environs. Salary rates and salaries are lower compared to other units, but staff turnover is rather low, with the exception of the sales department. All warehouse workers and drivers enter the public union.
The Drawing Unit. The line was just founded in the face of severe competition from companies with High Street. In the production department, wages are higher than other departments of the company. In the sales and purchasing departments, it is at an average level. Staff value their work. The age of employees is higher than in other divisions. The equipment used is modern. The whole collective is part of its own trade union.
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Key strategic goals:
• increase the competitiveness of each unit;
• increase the production of computerized equipment;
• Reduce costs in the areas of sales (production) through restructuring, even if the ego entails a forced reduction in staff.
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