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Konigsbrau Tak

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Decision Report: Future of Dmitri
Brodsky at Konigsbrau-TAK

Gautam Sharma
Date: 8/11/2015

Memo
Date: 28th October, 2008
To: Mr. Wolfgang Keller, Managing Director
From: Gautam Sharma, Management Consultant
Subject: Report on the course of action to be followed regarding the future
of Mr. Dmitri Brodsky at Konigsbrau-TAK

Please find enclosed a report on the decision whether Mr. Dmitri Brodsky
should be relieved of his duties or should he be given appraisal. The decision
has been reached at after due consideration of the company’s best interests
as well as that of Mr. Dmitri Brodsky.

Executive Summary
A decision is needed to be taken regarding the future of Mr. Dmitri Brodsky at
Konigsbrau-TAK from amongst three options available viz. relieve Mr. Dmitri
Brodsky of his duties towards the firm, help improve Mr. Dmitri Brodsky’s
performance, and reorganize the commercial department by splitting sales
and marketing divisions and making Mr. Dmitri Brodsky marketing director.
The recommended course of action based upon the evaluation of available
options against the critical identified criteria of acceptance by the managing
board, acceptance by Mr. Dmitri Brodsky, impact on the firm and impact on
other firm employees is to help Mr. Dmitri Brodsky improve his performance.
This would offer an opportunity to clear out differences with Mr. Dmitri
Brodsky and develop a way to work with him. Moreover, this would also
provide time to develop a suitable replacement for Mr. Dmitri Brodsky, who
can replace him in future if his performance does not improve.

Table of Contents
Memo.......................................................................................................................... 2
Executive Summary..................................................................................................... 3
Situation Analysis........................................................................................................ 5
Problem Statement...................................................................................................... 6
Options Available......................................................................................................... 6
Criteria for evaluation................................................................................................... 6
Evaluation of options................................................................................................... 6
Recommendation......................................................................................................... 8
Action Plan.................................................................................................................. 9
Exhibits..................................................................................................................... 10
Exhibit-1(Brodsky's First Annual Performance Appraisal Report)..............................10
Exhibit-2 (Brodsky's Second Annual Performance Appraisal Report).........................10

Situation Analysis
The change in the strategic stance/direction of the firm in terms of its
marketing strategy to cultivate closer ties with its distributors has resulted in
increased emphasis on the inter-personal relationship of the commercial
department with the distributors. The rationale behind this change, which
has been brought about as an initiative to increase the sales by
differentiating its product from that of its competitors in a highly consumerindifferent market towards premium beers, is also reflected in the steadily
increasing number of distributors in the country. Thus, it is of utmost
importance for the commercial department to identify and cultivate ties with
distributors having high growth potential, hence, keeping in-line with the
firm’s strategy. The Commercial Director, Mr. Dmitri Brodsky, despite his
strong analytical skills and his past experience, has not taken an initiative to
strengthen the relationship with the distributors. Mr. Brodsky's formal and
distant management style, and his inability to act expeditiously in timesensitive situations may have hurt his effectiveness as a Commercial
Director.
Mr. Brodsky's German-style of management, keeping business and personal
life separate, and lack of inter-personal skills seriously affect his ability to
cultivate ties not only with his peers and the sales force, but also with the
distributors. With him being the Commercial Director, this undermines the
current marketing strategy of the firm, which has resulted in a situation
where his future in this company is at stake.
Serving as the Marketing Director, Mr. Ivan Zelenko, has demonstrated the
ability to serve as a future replacement for Mr. Brodsky through his extensive
involvement in sales and marketing. Also, the middle managers as well as
distributors are more comfortable dealing with Mr. Zelenko than with Mr.
Brodsky. But still there are some reservations about his ability to serve as an
immediate replacement for Mr. Brodsky given his lack of experience in the
job.
Mr. Brodsky claimed that his work was not at par with the firm's standards
last year because of the persistent interference in his department, thereby,
not being allowed to perform his duties independently (see exhibit 1). The
increased independence in four out of the five responsibility items this year
(see exhibit 2) has resulted in an improvement in his performance and in the

one item where he got unsatisfactory review i.e. the sales force
reorganization, he devised an excellent plan whose results are yet to be
observed. Lately, he has shown effort in cooperating with other departments
during the preparation of the budget.
Brodsky’s performance appraisal is due and a decision needs to be taken
quickly about Brodsky’s future employment with the firm.

Problem Statement
To determine the decision to be taken regarding the future of Mr. Brodsky at
the firm and to implement a course of action which would complement the
decision.

Options Available
 Relieve Mr Brodsky of his duties/No salary hike to Mr Brodsky
 Give salary hike and help Mr Brodsky improve his performance
 Reorganise commercial department and make Mr Dmitri Brodsky
Marketing Director

Criteria for evaluation
 Impact on the firm
 Likelihood of acceptance by the managing board
 Impact on the morale of other firm employees
 Impact on Mr Dmitri Brodsky

Evaluation of options
Relieve Mr. Brodsky of his duties/No salary hike to Mr. Brodsky

 Impact on the firm:
This decision would have a negative impact on the firm since Mr
Brodsky is an asset to the firm because of his great analytical skills and
the firm does not have a qualified replacement for him.

 Likelihood of acceptance by the managing board:
This option is very less likely to be accepted by the managing board.
The managing board has advised to collaborate and work with Mr
Brodsky and would be inclined to perceive Mr Brodsky leaving the firm
as a result of the interference and conflict.

 Impact on the morale of other firm employees:
This would have a negative impact on the morale of some employees
as they would be inclined to see this decision by the management in a
bad light, that anyone with a different working style than the
management’s does not have a place in the organisation.

 Impact on Mr Dmitri Brodsky:
This could tarnish the image of Mr Brodsky in the market and hence,
lead to difficulty in getting a new job.
Give salary hike and help Mr Brodsky improve his performance

 Impact on the firm:
This decision would have a positive impact on the firm as Mr Brodsky,
who is an asset due to his strong analytical skills, would be retained by
the firm.

 Likelihood of acceptance by the managing board:
The managing board would be willing to accept this option, as the
salary hike could be justified by the increased sales as compared to
last year. Moreover, his recent cooperation with other departments
during the preparation of budget has shown signs of his improvement
of managerial skills with respect to the firm's requirement. A little more
effort and he could improve significantly.

 Impact on the morale of other firm employees:
Other employees will appreciate such a decision as this would display
that the management is sensitive towards employees’ needs.

 Impact on Mr Dmitri Brodsky:
The reaction of Mr Brodsky towards this strategy could be bipolar. He
may perceive it negatively thinking that the management wants to
denigrate him. But it is also possible that he would be happy to work
on his interpersonal skills.
Reorganize commercial department and make Mr Dmitri Brodsky
Marketing Director

 Impact on the firm:
The impact on the firm will be dependent upon how the new Sales
Director performs. Since there is scarcity of quality candidates, there is
a good chance that the impact on the firm would be negative. The best
in-house candidate is an inexperienced Mr Zelenko.

 Likelihood of acceptance by the managing board:
The managing board would be resistant in accepting this option
because Mr Zelenko although an able future replacement, currently
does not have enough experience for managing the sales department
on his own.

 Impact on the morale of other firm employees:
Mr Zelenko is on good terms with many middle level managers, who
would be comfortable with this option.

 Impact on Mr Dmitri Brodsky:
He may not be happy with this decision since despite having done well
in sales planning and implementation of the sales plan, the
responsibility of sales function is being taken away from him.

Recommendation

Based on the evaluation of all the three available options, it is recommended
that Mr. Brodsky should be given appraisal and thereafter, he should be
provided help to improve his managerial skills. Brodsky should be convinced
about the benefits of the decision leading to improvement in his interpersonal skills and resolution of the conflict with the management, which
would be mutually beneficial for all the parties involved.

Action Plan
Mr. Brodsky should be empowered by setting specific, measurable and time
bound goals for him. He should be given more autonomy and independence
over the Commercial Department. The management must try to reduce the
friction prevalent between Mr. Brodsky and itself by holding inter-personal
interaction sessions, and should praise and appreciate Mr. Brodsky when he
performs well.

Word count: 1198

Exhibits
Exhibit-1(Brodsky's First Annual Performance Appraisal
Report)
Responsibility Item
Marketing and Sales Planning
Development and Implementation:
marketing strategy
Plan and Implement Sales Force
Recognition
Develop and Implement Credit Control
Objectives
Sales Plan Implementation

Degree of authority
After Consulting Supervisor
After Consulting Supervisor
After Consulting Supervisor
Independently Reports Results
Independently Reports Result

Exhibit-2 (Brodsky's Second Annual Performance Appraisal
Report)
Responsibility Item

Degree of authority

Marketing and Sales Planning

Independently Reports Results

Development and
marketing strategy

Independently Reports Results

Implementation:

Plan and Implement
Recognition

Sales

Force

After Consulting Supervisor

Develop and Implement Credit Control
Independently Reports Results
Objectives
Sales Plan Implementation

Independently Reports Result

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