Managing Reorganization

As the newly hired manager of a division that is failing at my company, there are several factors I will focus in on to begin the transition to the turn around. Firstly, I want to focus on the fact that we are losing market shares because our product line is outdated. Next, I want to work to fix the problem we are having with adversarial interdepartmental communication. I would also like to address the ongoing issue that we have been having with receiving corporate funding. It is going to be very important to take each of the issues that we are having and incorporate them into an organizational structure change. After defining how we want to fix the issues we have addressed, I would like to give a more detailed account as to the steps that I believe are best to take in implementing this change. Lastly, I would like to highlight the effect that the external environment will have on the turn-around of the division.

               Richard Brock (n.d.) said “You sell a company twice. First of all, you see them the product, then you sell them the service.” The product line of a company is a huge part of the key to its success. To have a product line that is outdate is simply unacceptable. We need to develop a structure change in our division that will transition us from a functional structure to a project structure. Our new project structure should have an extensive focus on our product line. We need to make sure that we have the most up to date information and that our product reflects the type of workers that we are. Bill Gates (n.d.) once said “its quality! It's creating brand recognition and going after market share!” We need to be innovative and be the industry leader. In becoming the industry leaders, we will no longer be losing market shares and our company will benefit immensely. An organizational change in technology would also help to update our product line by allowing employees to collaborate and communicate much easier. This will lead to employees being able to learn how to be more efficient and effective from each other, as well as allow employees to access complete information faster and make quicker, better informed decisions about their work. 

               Adversarial interdepartmental communication can have extremely detrimental effects on division productivity. Bill Gates (n.d.) once stated that “like a human being, a company has to have an internal communication mechanism, a "nervous system", to coordinate its actions.” If we lack the ability to properly communicate with our co-workers, in theory, our nervous system is unable to function correctly, leading to a company spiraling to its grave. Management can work towards overcoming some of the communication barriers at hand by implementing several valuable techniques. We need to use feedback that our employees have to help pin-point the cause of the problem. We collaborating interdepartmentally, we need to ensure the use of simplified, direct, to the point language. We may need to have some activities that help employees to utilize the positive effects of active listening. Emphasis on constraining emotions and watching for non-verbal cues is also been proven effective in the workplace. It should be communicated to the workforce that we want everyone to communicate fully, openly, and honestly. As a result, fewer rumors will surface and it will cause higher morale in the office. We could also make more online databases available as well as create communities of practice for the divisions to greater expand the opportunities that they have to communicate effectively.

               It has also been made apparent that the competition for corporate resources has become a large issue. But I believe that we need to look at this in a different way. Fairfax Cone (n.d.) stated that “the inventory goes down the elevator every night.” That being said, we have to realize that our people are our most valuable internal resource. As long as we have them, we can do anything. It is important that we utilize each individual employee’s strength and weaknesses and make sure we are placing them in a position where they can be as efficient as possible. We need to make sure that they have the resources to do that as well. We will save a lot of money right of the bat if we utilize, to the best of our ability, what we have right in front of us. By taking these appropriate steps to change the structure, technology, and people, I believe that the solution to our financial problems will slowly solve themselves. In the beginning, we will save ourselves the money, and once we have developed a new product line that upper management can get excited about, the funding should follow.

               We are going to need to monitor the transition very closely for any kind of resistance. The steps that I would suggest to manage the transition would involve reducing the resistance to change as much as possible. Just as Robbins (2009) emphasizes, I would focus on my employees. I’d be sure to educate and communicate the department of the changes we are making and why, encourage participation, and provide a support system for them. Because building trust is a vital element to create a thriving workplace, I would avoid any strategies involving manipulation, co-optation, and coercion because of the damaging effect that it would have with employee relations. I would assess the external environment and integrate it into the turn-around plan by conducting research on changes in consumer demands, laws, technology, and economics and decided on adjustments accordingly.

               Many factors have to be taken into account to successfully turn around a failing business unit. An outdated product line, adversarial communication, and competition are the three main problems that have hindering our department. To fix these problems, I plan to implement a change in structure, technology and people. In managing the transition, I would suggest closely monitoring any resistance to change, and responding immediately to it. The external environment should also be reviewed and incorporated into the overall plan according to any changes.

References

Brook, Richard (2010, Dec). Richard Brock Quotes. Retrieved on January 18, 2011 from http://einstein/quotes/richard_brock/

Cone, Fairfax (n.d.). QFinance. Retrieved on January 18, 2011 from http://www.qfinance.com/finance-and-business-quotes/employees

Gates, Bill. (n.d.). Bill Gates Quotations. Retrieved on January 18, 2011 from http://www.afterquotes.com/great/people/bill-gates/index.htm

Robbins, Stephen P. (2009). Chapter 12: Managing Change and Innovation [Electronic Version]. Management (p.256-278). Pearson Prentice Hall. Retrieved from https://mycampus.aiu-online.com/controls/eBookFileServer.ashx?id=51_119_102_52_71_80_65_104_72_84_52_121_56_57_89_108_77_104_43_114_71_103_69_116_78_120_106_51_54_55_98_112_115_83_83_66_76_68_106_68_113_121_57_82_100_118_66_117_53_65_74_52_80_103_74_105_100_65_67_111_118_99_116_89_116_70_81_113_100_89_51_102_112_86_47_111_116_69_81_108_115_120_43_73_75_119_61_61&File=Robbins_Ch12 256-278&friendlyName=Chapter 12: Managing Change and Innovation

Implementing Management Change

               The three most important principles to implement when managing change are planning, measurement, and support structures. It is extremely important to plan during change because, as Lynda Rogerson (n.d.) states, “a clearly defined vision of the end result enables all the people to define the most efficient path for accomplishing the results”. You need to know what you are aiming for before you start shooting. Scenario planning would work well in this situation because it would identify early warning signals that the turn-around may be experiencing problems and would define what steps you wanted to take if any type of shifts (economically, politically, technologically) were to surface. Manager should be careful not to treat scenarios as forecasts however. 

Measurement is the second important principle that I feel is necessary during change because managers can set milestones, both short and long, which is essential in tracking progress. If you are reaching your goals when you planned, you know that you are on the right track. You must put into place a specific way to say whether you are failing or not. As a manager, you would want to make sure to put an exact timeframe into the goals, for example, sell 500,000 units to stores by November 15^th.  Knowing exactly what the goal is more clearly defines the objective for employees and consistently meeting goals is good for employee morale.

A support structure is the third important principle that I chose. People are very resistant to change because they are creatures of habit. Helping employees to work through the fears they may have during a change is one of the best ways to help them weather the storm. Managers can provide counseling, new skill training or a little bit of paid time off to allow employees stress level to decrease. Reiterating to employees that you are there to support them is very important during times of change. 

References

Rogerson, Lynda. (n.d.). Twelve Principles for Managing Change. Retrieved of January 24, 2011 from http://www.lynco.com/12prin.html

Computer Privacy In The Workplace

Computer privacy in the workplace is a controversial issue for most. Employers can use software that allows them to monitor internet usage. They can track all of the website you visit and keep track of all the emails you write and receive. Many companies use a tracking system that records keystrokes so that they are less likely to miss anything. Other types of employee monitoring include a technique that keeps track of the amount of time spend away from the computer terminal or idling.

          Employers are generally allowed to do all the tracking they please because they own the computers.  Most tracking systems make sure that the person being tracked has no idea that this is going on, unless the employer makes it known. In most states, there are no law in place that require employers to inform you if they do decide to start tracking you.

          Employees have very few rights when it comes to computer privacy in the workplace. Under certain circumstances, employees are offered protection from monitoring. Some union contracts limit the right of the employer to monitor. The United States Constitution provides minimal rights to public sector employees, most importantly the fourth amendment, which protects people against unreasonable search and seizure. (Privacy Rights Clearinghouse)

In 2007, the American Management Association and the e Policy Institute found that two-thirds of employers monitored employee internet usage. It is well known that many companies track content, keystrokes, and time spent at the keyboard.  Over 30% of companies use technology to automatically monitor the emails that are written by employees. Some of the latest software claims that by analyzing each employee’s “digital footprint” they can create an in-depth evaluation of performance and conduct. The software looks for word patterns, changes in the style of language, and communication patterns. However, the AMA does report that "Most respondent firms carry on surveillance practices on an occasional basis in the manner of spot checks rather than constantly or on a regular routine."

Studies conducted by CareerBuilder, an employment website, found that 45% of hiring managers check social media pages when considering prospective employees. (Wortham) They looks for things such as excessive drinking, drug use and bad mouthing of previous employers. The study also found that 35 percent of those mangers decided not to offer a candidate the job because of what they found on their social networking site. Privacy setting are offered by the sites to keep the array of people allowed to view your information limited. Sadly, the confusion over privacy settings leave some users publicly posting information without knowing it.

Companies like Teneros offer services that monitor publicly posted information on a regular basis for companies. (Brustein) They help companies to reveal potentially confidential or embarrassing information before other are able to get a hold of it. Employees’ social media creates a trail that could be subject to use in litigation. In the United States, there are no statutory laws that directly address implications of employers using social network sites as part of their hiring process. (Sinrod)

A prospective employer does not have the right to demand access to a social networking page. Even when it comes to social networking sites, there can be some expectations of privacy. (Sinrod) If an employer violates the terms of service of a social networking site, it could be said that they were committing a privacy violation. This mean that companies should never “hack” their way onto people social networking sites or pretend to be someone they are not to gain access to someone’s page. This is misrepresentation and violates the terms of service for the sites.

Common sense would save many people a lot of trouble when it comes to internet monitoring. When it comes down to it, if you are doing what you are supposed to be doing when you are at work, you shouldn’t have a problem. Most employers let you know what they expect from you and what they feel is acceptable when it comes to surfing the web.

Tthe government agency I work for tells you right up front that everything you do is kept on record, down to how many minutes you’ve spent of each website. Legal has informed us that surfing is acceptable during breaks and lunch (around an hour each day.) However, there are limitations as to the type of surfing you are doing. Most sites that the Agency wants us to stay away from are blocked. Interestingly, we are allowed to use facebook. The Defense Logistics Agency even created their own network that employees can join. At the end of the day, what it comes down to is that you should never put anything on the internet that you don’t want everyone to see. You must be internet smart and market yourself wisely.

Bibliography

Brustein, Jashua. New York Times. 26 March 2010. 10 December 2010 <http://bits.blogs.nytimes.com/2010/03/26/keeping-a-closer-eye-on-workers-social-networking/>.

Privacy Rights Clearinghouse. Workplace Privacy and Employee Monitoring. Spetember 2010. 7 December 2010 <http://www.privacyrights.org/fs/fs7-work.htm#3a>.

Sinrod, Eric. Prospective Employees Inadvertently Open Their Kimonos to Employers On Social Networking Sites. 11 November 2008. 2 December 2010 <http://articles.technology.findlaw.com/2008/Nov/04/11218.html>.

Wortham, Jenna. New York Times. 20 August 2009. 8 December 2010 <http://bits.blogs.nytimes.com/2009/08/20/more-employers-use-social-networks-to-check-out-applicants/>.

E-Business Security

All business owners should be aware of the risks associated with conducting business on the internet. Ventures like this can pose serious security risks if they are not gone about in the correct manner. A responsible business owner needs to take the necessary precautions when they decide that they want to conduct an e-business. Taking the time to protect your business from hackers will maximize the potential for success.

          “The term hacker was originally used to refer to a self-taught computer expert who is highly skilled with technology, programming, and hardware” (Jenkins, 2000). Hackers target small businesses because they lack the resources that large corporations possess to provide security. A malicious code can destroy all of a company’s code generators and programs. They have caused companies to lose millions of dollars as well as industry position. To avoid malicious codes debilitating your online company, anti-virus and anti-spyware programs should be used and updated regularly and have the most recent patches. A firewall is also a good tool to utilize when trying to protect your online business from these types of threats.

          Data breaches are a common problem seen by online companies that fail to secure their wireless internet networks properly. It can lead to your customer’s financial information falling into the hands of someone who intends to misuse the information. If you intend on using a wireless network for you business you have to ensure that proper security steps are taken. The default password should be changed to something lengthy and preferably containing both large and small letters as well as numbers and characters. You should also make sure that you encrypt your wireless router with Wi-Fi protected access or WPA.  If you aren’t using a wireless router, you should still secure communications that go on over a network. This should be done with the use of internet protocol security or IPSec.

          Another important internet security issue that stems from network use is an always-on connection. Most internet businesses rely on a high bandwidth connection like DSL or a cable modem. An always-on network connection leaves you vulnerable to attacks 24/7. Static IP addresses are also maintained when using an always-on connection. The presents a problem because “once a potential hacker has found the computer, he or she will be able to return to it as long as it is using the same IP address, placing it at greater risk of malicious intrusion” (Jenkins, 2000).

          E-businesses constantly exchange data. It is important to be aware of who you are exchanging data with. Connecting to systems that are owned as well as controlled by others can pose serious security issues. Because of this, it is important that the security mechanisms chosen are “standards based, flexible, and interoperable, to ensure that they work with others’ systems. They must support browsers, and work in multi-tier architectures with one or more middle tiers such as web servers and application servers” (White, 2002, p. 4).

          It is also important to encrypt the information that you keep on your personal computer. You must be prepared for the possibility that your computer could fall into the wrong hands. If it did, you would want to ensure that whoever has the computer won’t be able to view any of the sensitive information being kept on it. To protect your business from the possibility of a computer being stolen, use encryption programs that make information unreadable without an encryption key or password. “An additional strategy is to utilize Secure Sockets Layer (SSL) and/or S-HTTP, which work great to secure e-business transactions and other communications between browsers and Web sites” (B., 2010).

When it comes to email, security should be a number one priority. All emails should use file encryption so that communications remain between the customer and the business. Employees should also be made aware of spear phishing scams. They could receive emails that appear to come from a legitimate place like an IT department and be asked to relay sensitive passwords via email. Employees should always be made “aware of what a spear phishing attack is and to be on the lookout for anything in their in-box that looks suspicious (Teixeira, 2007).

I have no doubt that an acceptable level of security can be reached when conducting business over the internet; however, it is a business owner’s responsibility to take the proper steps to ensure the highest security level possible.  Security of an e-business is a multifaceted challenge requiring appropriate policies and practices. When you have successfully deployed an internet business, you will have developed a well established risk management procedure to deter disintermediation of data access.  Providing security for your internet business shouldn’t be hard. There are numerous program providers in the network security field to help you. Failing to take it into account at all would be a fatal error on a business owner’s part.

References

B., D. (2010, May 28). Exploring the Security Concerns for an Online e-Business. Retrieved from http://www.brighthub.com/computing/enterprise-security/articles/72582.aspx.

Teixeira, R. (2007, June 4). Top Five Small Business Internet Security Threats. Retrieved from http://smallbiztrends.com/2007/06/top-five-small-business-internet-security-threats.html.

White, O. (2002, January). Managing E-Business Security Challenges. Retrieved from http://www.cgisecurity.com/database/oracle/pdf/9iR2hisec.PDF.

Ebay's Business Model

Ebay Inc. is the provider of an online marketplace where goods and services are sold auction style. They are in the services sector of the catalog & mail order houses industry. Their competitors consist of companies such as Amazon.com and Liberty Media Corporation (Yahoo, 2011). Their online platforms include Ebay.com, StubHub, and Shopping.com (Yahoo, 2011). They operate in over 27 countries and just recently entered into the European Marketplace (CNBC, 6/29/2005).

Their e business model aims to provide customers with an easy inexpensive way to save as well as make money, depending on whether you use Ebay to buy or sell. Ebay gets charges a fixed fee based on the value of the item sold to the seller and receives the money when the sale has been made. Essentially, they are getting paid for their platform.

With regular maintenance and upkeep to the sight, they don’t have to worry about inventories or overhead expenses like the retail change experiences. They have also done an excellent job with their branding and are a well known name in most every household. They have a good marketing position because they are the best of bread when it comes to selling things online. The fact that they were one of the first to implement the idea of creating a platform where people can sell to other people has made them a very innovative and breakthrough company. Their long term success will be decided on their ability to keep their site running effectively and without any issues from spammers or people utilize the website for marketing.

The economy would be one of the larger market influences on this company. A bad economy could benefit Ebay if it meant that people were turning there to supplement their income by selling some of their things or if people were trying to save money on an item and looking for a deal on the site. A bad economy could negatively affect Ebay if it meant that people were not spending as much money and weren’t making as many purchases on their site because they didn’t feel they had the expendable income. 

CNBC, Inc. (May, 29 2005). Ten things You didn’t know about Ebay. Retrieved from http://www.msnbc.msn.com/id/8391726/ns/business-cnbc_tv/t/ten-things-you-didnt-know-about-ebay/#.TkWDcmFOrzY.

Yahoo. (2011).  Industry Center - Catalog & Mail Order Houses. Retrieved from http://biz.yahoo.com/ic/739.html.

Disaffirming a Contract Signed By a Minor

The law states that minors do not have contractual capacity. Minors are defined by being under the age of majority. The age of majority varies from state to state and is usually 18,19, or 21. This gives adults who have signed contracts before the age of minority the ability to disaffirm or refuse to be bound by a contract. However, emancipated minors may be bound by their contracts. The ratification of a contract after the age of majority binds the person to that contract and will no longer allow them to disaffirm the contract. Court approved, insurance, work-related, reality and banking contracts cannot be disaffirmed.

If a person gives there real age when signing a contract, I believe that the companies should be liable for anything disaffirmations because they were aware of what could happen. I think that the fact that disaffirmation is still allowed even if the person lied about their age is a grey area ethically. A company should be responsible for getting proper proof of age when they are setting up a contract with someone. Therefore, they have not covered well enough for themselves and should still be held liable.

Minors have a reasonable length of time after achieving their majority to disaffirm contracts.  I think that within 5 years would be reasonable for a contract that is known about. If someone decided to seek money for a contract at a later time that the person was unaware of or didn’t remember having, I believe that they should be able to disaffirm it when they find out about it, no matter how many years later that is.

Ethically, I don’t believe that it’s right if a child lies about their age and then is still able to disaffirm a contract without consequences. However, we call them minors for a reason. These are young people who haven’t really gotten a chance to learn right from wrong and what types of contracts they should enter and the obligations that come with them. I think that the government protecting our minors from being contractually obligated to a contract agreed to before the age of majority is very ethical. We cannot allow our youth to be taken advantage of. 

Employee Drug Testing

Studies have shown that substance abusers are 33% less productive overall (Patrick Dixon). Patrick Dixon found research showing that “when the State of Ohio introduced random drug testing they found absenteeism dropped 91%, there were 88% less problems with supervisors and 97% decrease in on-the-job injuries”. Employers have a responsibility to ensure that their employees do not pose a safety risk to anyone while on the job. Unless employees’ belong to a union, they have little to no legal protection against being drug tested.

State and local legislature have limited the powers of employers by passing statutes regarding drug testing.  Because of this, many employers have put contractual agreements into place that effect what rights the employee has. However, even if an employer is able to obtain information that an employee is doing drugs, they are still limited as to how they are allowed to respond to their findings. It is believed that drug testing interferes with the EAW principle of guaranteed political right, more specifically, the right to privacy.

I believe that, because drug use can be such a liability to employers, drug testing should be allowed under any circumstances. The continued passage of acts that are limiting actions of employers shows that the majority of American’s would not agree with my statement.

Moral philosophies can be consistent with both arguments. An employee privacy is a right that should be guarded however not doing drugs may potentially affect your work performance is the ethical thing to do.  I think that this issue is present because we do not want people doing illegal drugs, however, when figuring out whether or not someone is doing illegal drugs divulges information about other legal drugs they are taking, privacy is violated. I don’t think that whether or not you are on depression medication or ADHD medication etcetera is any of an employer’s business.   

Dixon, Patrick. (Jan. 26, 2011). Drug Testing in the Workplace. Retrieved from http://www.globalchange.com/drugtest.htm on February 20, 2011.

What constitutes an offer and an acceptance in contract law?

An offer in contract law is expressing the desire to enter into a contract. It must be made with the intentions that the offer will become binding as soon as the offer is accepted. An offer can be revoked anytime before it is accepted as long as the revocation is communicated to the offeree. A contract cannot be revoked if it was in an option contract. The offer should contain all circumstances for the proposal being made. The offeree should have a present intent to contract so it can be made clear that the offeree is serious. Once the offer is made, the offeree cannot change any of the terms of the contract. It must be exactly the same. The offeror can set a deadline as to how long the offeree has to accept the offer. The offeror can also demand a certain method of acceptance to be used.

An acceptance is a response to the offeree that indicated that they approve of the terms of the offer. Once an offer is accepted, a legally binding contract is created. An acceptance must be intentionally made. The offeree must communicate to the offeror that they agree with the terms of the proposed contract. The communication of the acceptance of an offer can be bilateral or unilateral.

Offers can be accepted instantaneously and non-instantaneously. This was the issue in the case of Ellefson v. Megadeth, Inc. Non-instantaneous forms of acceptance are methods utilizing mail, email, and fax. Non-instantaneous forms of acceptance can cause timing issues. The Ellefson case resulted in The Mailbox Rule. The Mailbox Rule states acceptances that are properly address and dispatched take effect as soon as they are sent regardless of whether or not it comes up lost. The Ellefson case has caused more offeror’s to say exactly how long the offeree has to accept by setting a date. However, if an acceptance is sent after a rejection had already been sent, the acceptance does not become binding until received by the offeror. The final exception to The Mailbox Rule is if the contract states that the use of The Mailbox Rule is not allowed.

It was ruled that Ellefson only sent a counter-offer because he could no furnish evidence that he had faxed the acceptance before the 5:00 PM deadline.