Managing People in Smes Essay

6101 Words Apr 26th, 2010 25 Pages
How to Manage People in SMEs in Context
(Walkers Engineering Ltd. Case Study)

Introduction and background of the case
Walkers Engineering Ltd. is a small and medium family-run enterprise with 225 employees, and is partially unionized. The company manufactures plastic mouldings and bins, enjoying a good reputation for its quality. In order to remain profitable and a leader position in the market, the company plans to take some radical changes in new technology, working practices and reorganization of the workforce. The strategic agenda for Walkers Engineering is to start pilot scheme from the manufacturing section with acute problems and then to transform organization-wide. In this assignment, based on the overall situation of Walkers
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‘A leader is someone who influences others’ (Emergency Field Coordination Training, 2005, p.3). In other words, the leader is a soul of an organization, because they give the direction and vision to the people in the organization, and meanwhile they have responsibilities to guide staff to achieve the organizational objectives. If the leaders or the management team are not effective and responding to changes, the organization may fail to reach its planned result. Mintzberg (no date) cited by Kennedy (2002, p.167) adds: ‘in effect, every manager must spend a good part of his time responding to high-pressure disturbances.’ As a family owned company, Walker Engineering cannot get rid of such disadvantages. Kehrer (2006) indicates: Family members who often have a present or presumed future ownership stake in the business have a tendency to reprimand employees who don't report to them. This leads to resentment by employees. In Walker Engineering, the reporting structure is not flexible due to the hierarchy of the power. Each section has an assistant supervisor who reports to the supervisor who reports to the departmental manager, who it turns reports to the production manager. In this process, how the real information is communicated effectively? There is lack of efficient and well-organized whole process management and lack of effective communication and coordination across different sections. And the leaders have less

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