Wallace

The most important problem facing the Wallace Group is that the Chairman and President of the Wallace Group, Mr. Hal Wallace lacks a strong sense of vision or maybe a vision at all. “Top management as well as CEOs must have a strong sense of vision. As a leader, he should set an example in terms of behavior and actions. Mr. Wallace’s attitudes and values concerning the corporation’s purpose and activities should clear cut and constantly communicated in words and deeds” (Text,p49). With the help of others, meeting corporate objectives and goals is top management’s primary responsibility (Wheelen and Hunger, p.48).

Hal Wallace seems lethargic in his position and has failed to set any corporate goals or assist or even guide the other divisions. The only direction he gave as asking the Plastics division to continue to make a profit (Wheelen and Hunger, Case Study 2-5).

Also, the divisions do not interact with each other nor do they have any direction or goals to keep them motivated and moving forward. If they are to have responsibility for their profitability, they need budgets, growth goals and control over hiring, firing, advertising, and training (Contractor Magazine, 1999).

2. What recommendations would you make to Mr. Wallace, and in what order of priorities?

First and foremost, the Wallace Group’s Mission, Vision, and Goals need to be defined. Currently, the divisions are not working together even though each division is dependent

on the other. Mr. Wallace and the division heads must be unified in this effort and work toward a common goal.

Secondly, a Management Development program must be implemented and practiced. Most of the managers have been promoted from technical positions and have had no prior

managerial experience or training. Mr. Campbell, the Director of Industrial Relations, stated, “Mr. Wallace thinks it’s too expensive to conduct Manager Development training” (Wheelen and Hunger Case Study 2-7). However, it would be less expensive in time, effort, and opportunity cost to train the current management staff, than it would to hire all new outside managers and get them up to speed with the operation (or lack thereof) of the company.

The basic management process involves defining goals, establishing strategies to achieve them, and designing ways to get work done. It also involves arranging group efforts. Finding and supervising the right people for the job are other very important management functions. Finally, evaluating goal achievement can help managers see where the plan needs adjustment (Pearson Prentice Hall, 2006).

Also, a complete analysis of job descriptions and job requirements must be conducted. “The staff has assumed many functions previously assumed by groups and responsibilities and relationships are still undefined” (Wheelen and Hunger, Case Study 2-5). Persons are declining job offers because the “salaries are too low” and persons suitable for the positions are being passed over because “the job requirements/specifications are too high” (Wheelen and Hunger, Case Study 2-7). For example, a candidate sued the Wallace Group citing discrimination due to the