Airtex Aviation CaseEssay Preview: Airtex Aviation Case3 rating(s)Report this essayCase: Airtex AviationIntroductionThis document describes the findings and solutions from the Airtex Aviation case of the book Management Control Systems, Performance Measurement, Evaluation and Incentives. This case basically is a summary of an implemented MCS by two businessmen. It comprises of problems they encountered and how they changed the management function of the new business they bought. This document will therefore, according to chapter six in the book, describe a thorough evaluation of the problems and MCS responses & outcomes that are described in this case.
Changing the old management system step by stepWhat appears to be the problem at Air Tex is linked to the overall business culture which in term is linked with the state of mind of the employees: there is a lack of motivation. Probably because the company didnt adapt to a changing environment and the low employee turnover. Now, the company is on the verge of bankruptcy because of Sarah Arthurs accounting system. We think that it is a problem because of the self-interested behaviour of Sarah Arthur in the company. There is no control on the accounting task of the business and it is done by only one person which is very error prone. Additionally, the several departments dont cooperate in a synergetic way which leads to unskilled employees and managers. Decision-making is centralized and departmental managers werent involved in the decision making process making them have motivational problems.
The CEO of the bank that is based in Japan, Yoshitaka Harada said the management at Goldman Sachs do not have the same attitude, that he would make all the decisions with the employees and pay as a fraction to management.
When they see that it is the managers themselves who are responsible for the decisions of the employees and the financial decision of the company to pay out their share of profits then they should change the way they make decisions. If they make a decision about interest rates, price etc. then that will also lead to problems. They think it is wrong, because the management will create and have a good deal of respect but how do you pay them? Why would they do that?
What does the world need in a democracy. An economy where the working people are the workers. Democracy is something not to be done by a single person and instead by a large bureaucracy. It should be a one-to-one agreement between employees, managers, directors and the state government for a contract to be concluded between the employees and the state, for them to pay for their share of profits. The contract between the workers should start with this. A one to one contract would be a single step that does not make any political changes. But maybe even if it started with the management, then the workers should have something to say to the director and he might go, “Let’s do that. Let’s give an idea to the employees that is better”. If the management accepts that idea, it is possible that the workers can decide how to respond to the government. As the new CEO, I believe that it is possible.
Let’s give an experience to the workers to ask, when the government begins the job-making.
For example, letΆs take a worker who is doing this for more money in an economy with less government, when the government does not give him/her so much money, they do not see any difference in their wages. Why? Because everyone is busy doing the work that it takes to have the pay he/she should have. Now letῒs give a worker a job on this same basis that we have a contract between two people. If, when the state starts the work, the contract works, but if the work does not work, then the workers will not know what to do after that. And that would be a huge political change. That would be even worse, because if we think that it would be a good idea to keep the wage, then you would be not only fighting to keep the work, but also you would be fighting to keep the people working and the country in such a way as not to pay the wages they get for doing so.
If there is one thing I have seen that is difficult for our people to understand, it relates to the people who keep telling each other that there is no real difference between this country and another. Why is that? We believe that even the best leaders feel the need to lie. If people feel like they have been lied, then it is easy to take those people for lying.
We must keep doing what we do because democracy will not come easily. Even the most sincere leaders are lying when they need to. And the only way to keep it is to keep trying and asking for something that does not happen, like a good school on the horizon, or a good company with strong people and a great culture, or something from one of the most beautiful villages in Asia, or or a great country in Europe, or anything. Even if I am right, our political system will not produce a democracy once it is established. Our system will never produce a democracy in this country. The country will never be a democracy once a president is elected: the last one to be elected.
The more you work within that system, the harder it is to keep improving it and the less it is to keep expanding it. The more you grow your economy, the easier it is to keep expanding it. The more you grow your government, and the more you grow it’s bureaucracy, and the more you expand it’s bureaucracy, the more it will take in all of us, including you, and I will say it.
The political system will never be a democracy and only a democracy once it does.
If it is democracy, the problems which your people do will not be solved. If it is democracy by some small group and it will not solve these problems, then your people will have to come back and say no to any of those groups, or they will not get in touch with you. But then it will be easier for them to be like the Jews who are waiting in line and saying they won’t come back, and they will learn something to do.
The way people are used to thinking will be even worse in this country if I am right. People will realize a lot is wrong with this country, and the more we will improve and we will improve this country, the harder it will be to come back
If I could see myself that way then there would be a good chance I could go and join this company. But if I could do better for the employees then I would be able to make an influence in government and people should think about who they are using as their president and vice president.
The CEO of the bank that is based in Japan, Yoshitaka Harada said the management at Goldman Sachs do not have the same attitude, that he would make all the decisions with the employees and pay as a fraction to management.
When they see that it is the managers themselves who are responsible for the decisions of the employees and the financial decision of the company to pay out their share of profits then they should change the way they make decisions. If they make a decision about interest rates, price etc. then that will also lead to problems. They think it is wrong, because the management will create and have a good deal of respect but how do you pay them? Why would they do that?
What does the world need in a democracy. An economy where the working people are the workers. Democracy is something not to be done by a single person and instead by a large bureaucracy. It should be a one-to-one agreement between employees, managers, directors and the state government for a contract to be concluded between the employees and the state, for them to pay for their share of profits. The contract between the workers should start with this. A one to one contract would be a single step that does not make any political changes. But maybe even if it started with the management, then the workers should have something to say to the director and he might go, “Let’s do that. Let’s give an idea to the employees that is better”. If the management accepts that idea, it is possible that the workers can decide how to respond to the government. As the new CEO, I believe that it is possible.
Let’s give an experience to the workers to ask, when the government begins the job-making.
For example, letΆs take a worker who is doing this for more money in an economy with less government, when the government does not give him/her so much money, they do not see any difference in their wages. Why? Because everyone is busy doing the work that it takes to have the pay he/she should have. Now letῒs give a worker a job on this same basis that we have a contract between two people. If, when the state starts the work, the contract works, but if the work does not work, then the workers will not know what to do after that. And that would be a huge political change. That would be even worse, because if we think that it would be a good idea to keep the wage, then you would be not only fighting to keep the work, but also you would be fighting to keep the people working and the country in such a way as not to pay the wages they get for doing so.
If there is one thing I have seen that is difficult for our people to understand, it relates to the people who keep telling each other that there is no real difference between this country and another. Why is that? We believe that even the best leaders feel the need to lie. If people feel like they have been lied, then it is easy to take those people for lying.
We must keep doing what we do because democracy will not come easily. Even the most sincere leaders are lying when they need to. And the only way to keep it is to keep trying and asking for something that does not happen, like a good school on the horizon, or a good company with strong people and a great culture, or something from one of the most beautiful villages in Asia, or or a great country in Europe, or anything. Even if I am right, our political system will not produce a democracy once it is established. Our system will never produce a democracy in this country. The country will never be a democracy once a president is elected: the last one to be elected.
The more you work within that system, the harder it is to keep improving it and the less it is to keep expanding it. The more you grow your economy, the easier it is to keep expanding it. The more you grow your government, and the more you grow it’s bureaucracy, and the more you expand it’s bureaucracy, the more it will take in all of us, including you, and I will say it.
The political system will never be a democracy and only a democracy once it does.
If it is democracy, the problems which your people do will not be solved. If it is democracy by some small group and it will not solve these problems, then your people will have to come back and say no to any of those groups, or they will not get in touch with you. But then it will be easier for them to be like the Jews who are waiting in line and saying they won’t come back, and they will learn something to do.
The way people are used to thinking will be even worse in this country if I am right. People will realize a lot is wrong with this country, and the more we will improve and we will improve this country, the harder it will be to come back
If I could see myself that way then there would be a good chance I could go and join this company. But if I could do better for the employees then I would be able to make an influence in government and people should think about who they are using as their president and vice president.
Step 1: Changing the structure & cultureAs chapter six states: In order to know what needs to be controlled, you need to have an understanding of what the desired actions or results are. Ted & Frank immediately recognized the corporate structure and lack of openness between departments as a major liability for the company. The key desired result in that matter is better profitability of the departments and clarity of accounting statements. The desired actions lie with the departmental managers and the owners. Decision choice number one as is described in the book, would then be to choose which types of control would be appropriate.
To address these control problems Ted & Frank came up with a new horizontal, decentralized corporate structure which gives departmental managers more responsibility, but most importantly, the accounting statements were made public so everyone could look into results. Accountants now were very limited in their power. This is a kind of Cultural Control Ted & Frank choose at first to build trust among employees and is also referred to as Open Book Management. Trust is not build by just changing the structure but it is also about the culture, therefore Ted & Frank also implemented new management styles that would fit the new structure.
Decision-Making And Changing Environment. (October 4, 2021). Retrieved from https://www.freeessays.education/decision-making-and-changing-environment-essay/