In the modern constant changes business environment, company needs to change constantly to remain competitive in the market. If not, the company will be facing survival risk. There are no mercy and exception for Cox’s Container Company (‘CCC’). CCC faced increasing competitions over the past 5 years and profits are in declining trends due to reduce in margins. Harold Cox was clueless on how to rectify the problems. He has delegated the task to Erica Wilson to review CCC’s operations and oversee organization changes. Under her control and management, new central administration department was formed to implement budgeting system and company-wide information system. First time in the history of CCC, Wilson recruited external
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Autocratic leadership will be good when time is short but lack of creativity. She also moved CCC's structure towards mechanistic structure with standardization, many rules and little autonomy, i.e. budgeting system to replace the rather informal system and requires all departments to inform the central administration department twice daily basis of work in progress. Different structures give rise to different culture (Handy, 1993). Thus, culture also change from power culture to role culture. Role culture also emphasize on the importance of rules, procedures and its operation are driven by logic and rationality. Authority of CCC will be legitimate authority that based on formal and written rules. According to Weber (1947 cited in Huczynski and
Buchanan, 2013), an organization based on legitimate authority would be more effecient than one based on either traditional or charismatic authority. This was because its continuity
was related to formal structure and the position with it, rather than to a particular person who might leave or die.
Since Wilson is the sole decision maker on what and which area needed for change to improve CCC's operations. She had conclusion drawn based on her own judgement and interpretation from her personal experience, expectation and belief with no feedback obtained. Feedback will be important and