At the start, the CEO, Alfredo adopted human relations management approach as he taking the business advices from his workers.
Human relations management (HRM) is an effective approach for Bella Food on product improving and developing rather than decision-making.
Since the approach allows Alfredo to evaluate his employees ' performance to seek more opportunities for the company. HRM gives the sales representative, Roberto, control over his working style that he could raise the issue of sales for gluten-free products. Due to his previous successful predictions, Alfredo trusted him without any doubt. With …show more content…
Right after the outbreak, Alfredo recalled all the suspected products along with others that are produced in the same range once he made up his mind. Comparing to consulting and having meetings, the decision consumed less time on the process and is an efficient way to save the reputation and entity’s image. However, since Alfredo had no communication with his employees, "the sales manager and marketing manager were concerned". The managers ' motivation has been reduced.
Furthermore, with scientific management approach, the final decisions may be biased. When Alfredo decided to recall a large range of products that are not contaminated as a precaution, he could not forecast the influences on financial aspect as the sales manager concerned the cost and that "[the decision] was sending a wrong message ". Alfredo is not a sales expert; the recalling can bring up some unexpected results. A biased decision will brings wider negative implication to the company as Alfredo worried in the …show more content…
Same as the statement made by Harvard Business Review that "Scientific management, furthermore, could be successfully introduced in the departments which employ unskilled labor"(Harvard Business Review, 1925). Due to the monetary incentive is the essential motivation for these labors, by giving them direct instructions and supervisions is the best way to minimize the cost and improve the productivity. This is a typical economic exchange approach (Arthur, 1994) for business to achieve short-term