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    Rhea Royce Cabuhat
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    The employees were understandably saddened and dismayed by the sudden decentralization policy change announced by Nico, as they had been working under a decentralized system for years. However, they should also be open-minded to changes presented by management to centralize decision-making. While decentralization can have benefits like reducing pressure on top management, the abrupt shift after Mr. Joel Samonte's death was a major mistake as it disrupted the fully functioning organization and only caused harm. Both management and employees will need to communicate openly and work to adapt to the changes for the continuity of the business.

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    CASE STUDY (RETAILING COMPANY)

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    The employees were understandably saddened and dismayed by the sudden decentralization policy change announced by Nico, as they had been working under a decentralized system for years. However, they should also be open-minded to changes presented by management to centralize decision-making. While decentralization can have benefits like reducing pressure on top management, the abrupt shift after Mr. Joel Samonte's death was a major mistake as it disrupted the fully functioning organization and only caused harm. Both management and employees will need to communicate openly and work to adapt to the changes for the continuity of the business.

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    © All Rights Reserved
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    709 views1 page

    Case Study (Retailing Company)

    Uploaded by

    Rhea Royce Cabuhat
    The employees were understandably saddened and dismayed by the sudden decentralization policy change announced by Nico, as they had been working under a decentralized system for years. However, they should also be open-minded to changes presented by management to centralize decision-making. While decentralization can have benefits like reducing pressure on top management, the abrupt shift after Mr. Joel Samonte's death was a major mistake as it disrupted the fully functioning organization and only caused harm. Both management and employees will need to communicate openly and work to adapt to the changes for the continuity of the business.

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    of 1

    CABUHAT, RHEA ROYCE O.

    3BSA-1

    Case 4.  JOEL RETAILING COMPANY: Yesterday

    QUESTIONS:
    1. What do you think of the reaction of the employees regarding the decentralization
    policy of Nico?
    The employees, I think, were all saddened and dismayed regarding the decentralization
    policy of Nico. Change is stressful and draining in all aspects. In this case, employees have been
    working on a very functional decentralized organizational structure for several years already
    and the rapid change of policy will make it hard for them to cope up quickly. However, the
    employees must also open their minds to the changes being presented by Nico, as the latter
    was slowly introducing measures to centralize decision-making. I cannot blame them for feeling
    disheartened by the swift changes but it is also necessary for the employees to be receptive of
    those changes. In many cases, employees and the company must move forward with the
    current changes and demands at hand.
    It’ll be so uncomfortable and very difficult to transfer to the new system of management
    since most of Nico’s employees have worked in the former structure, their attitudes are difficult
    to alter, and attempts often lead to resistance. In this situation, a healthy discussion between
    top management and employees must be initiated by Danny in order to give Nico the best place
    to lie down, present and explain the new policy, as well as for employees to share their
    thoughts on the new policy versus the policy they have been using for years.

    2. Do you consider the decentralization policy as a big mistake? Why or why not?
    Decentralization by itself is not a mistake, since it would reduce the pressure on top
    management, boost oversight and monitoring, and speedy decision-making could be
    implemented. Decentralization strategy or decentralization itself is an organizational
    mechanism in which day-to-day activities and decision-making roles are delegated by top
    management to middle-and lower-level managers within the organization, enabling top
    management to concentrate more on key decisions. The need for decentralization is considered
    necessary for the continuity of productive operations. It also has a number of benefits, although
    it may be difficult for a business owner to give up control.
    In this case, however, the abrupt shift in the system after the death of Mr. Joel Samonte
    was a major mistake. After operating in a fully functioning organization, the abrupt transfer of
    authority only caused harm to the company. But as workers, they need to be more open-
    minded, because in the business world there is no such thing as constant. They need to cope
    and learn how to adapt to these changes so that they won't be left behind.

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