Assignment 1 – Introductory to Management

Baginda Mulana Simatupang

1911011036

FMB&T Marshall Pinkard, president and CEO of FMB&T, a growing California-based

regional commercial and consumer retail bank, clicked on an e-mail from Ayishia Coles.
Ayishia was the bright, hardworking, self-confi dent woman who’d recently come onboard
as
the bank’s executive vice president and chief information offi cer. The fact that the person
in
Coles’s position in the company’s traditional vertical organization now reported directly to
him and was a full-fl edged member of the executive committee refl ected FMB&T’s
recognition of just how important information technology was to all aspects of its
increasingly competitive business. The successful, leading-edge banks were the ones using
information technology not only to operate effi ciently, but also to help them focus more
effectively on customer needs. Marshall settled back to read what he expected would be a
report on how she was settling in. He was sadly mistaken. After a few months on the job,
Ayishia Coles was frustrated. What she needed from him, she wrote, was a clear statement
of
her responsibilities and authority. The way Ayishia saw it, the relationship between
information technology and the bank’s other business units was muddled, often causing
considerable confusion, friction, and inefficiency.

Typically someone from retail banking or marketing, for example, came to her department
with a poorly defi ned problem, such as how to link up checking account records with
investment records, and they always expected a solution the same day. What made the
situation even more vexing was that more often than not, the problem crossed
organizational
lines. She found that generally the more work units the problem affected, the less likely it
was
that any single unit took responsibility for defi ning exactly what they wanted IT to do.
Who
exactly was supposed to be getting all these units together and coordinating requests? When
she tried to step into the breach and act as a facilitator, unit managers usually didn’t
welcome
her efforts. Despite the vagueness of their requests, the work units still expected IT to come
up with a solution—and come up with it quickly. All these expectations seemed almost
calculated to drive the methodical IT folks mad. Before taking on a problem, they wanted
to
make sure they thoroughly understood all of its dimensions so that the solution would fi t

1|Page
 Assignment 1 – Introductory to Management

Baginda Mulana Simatupang

1911011036
seamlessly into the existing systems. This coordination took time that other parts of the
bank
weren’t willing to give IT. In addition, Ayishia knew the IT staff was increasingly feeling
underused. The staff wanted to identify opportunities for dazzling new IT developments to
contribute to business strategies, but it found itself limited to applications work. Ayishia’s
greatest concern was the president of a large regional branch who was actively
campaigning
to locate decentralized IT departments in each large branch under branch authority so that
work would be completed faster to meet branch needs. He said it would be better to let
work
units coordinate their own IT departments rather than run everything through corporate IT.
Under that scenario, Ayishia Coles’s department could end up one-half its current size.
Marshall leaned back in his high-backed executive chair and sighed. At the very least, he
needed to clarify Ayishia’s authority and responsibilities as she had asked him to do. But he
recognized that the new vice president was talking about a much larger can of worms. Was
it
time to rethink the bank’s entire organizational structure?
Questions:
1. What are the main organizational causes of the frustration that Ayishia Coles feels?
2. If you were Marshall Pinkard, how would you address both Ayishia’s request for
clarification about her authority and responsibilities and the underlying problems
her e-mail brings to his attention? Can the problems be addressed with minor
adjustments, or would you need to consider a drastic overhaul of the bank’s
organizational structure? What environmental and technological factors would infl
uence your decision?
3. 3. Sketch a general chart for the type of organization that you think would work best
for IT at FMB&T.

2|Page
 Assignment 1 – Introductory to Management

Baginda Mulana Simatupang

1911011036
Jawab :

1. Ayishia Coles feels frustrated because she’s unconscious of her authority and
responsibility and also she’s unaware of the responsibility of other units within the
organization, there is poor coordination and relationship between IT and other
business units and there is a low morale within the IT unit and last, the decisions are
concentrated at the top of the hierarchy.

The main cause of the frustration experienced by Ayishia Coles as executive vice
president and head of bank information, was the inadequate communication that
occurred between Ayishia Coles and members of bank employees. So this causes
chaos in Ayishia. Whatever is needed by Ayishia Coles may want to maximize his
responsibilities and authority at the Bank, but this causes Ayishia Coles to see the
relationship between information technology and bank business units chaotic and
often causes confusion, friction and inefficiency between units bank development.

This is what caused Ayishia Coles to experience frustration in carrying out his
responsibilities as executive vice president and head of bank information. Then
another cause is, when there are consumers or people who have problems related to
the work of the Ayishia Coles, that person wants the problem to be resolved on the
same day, which causes Ayishia Coles to think harder in solving the problem. It also
affects the level of frustration of an Ayishia Coles. Then there are many problems
that cross their organizational lines. He found that the more work units that were
affected, the less likely each unit was responsible for determining what they wanted
to be done by the Aishia Coles department. Then if Ayishia Coles wants to be a
facilitator in solving problems as the head of the information department, the unit
managers in the IT department do not accept his suggestions. It could also be that
each unit in the IT department is not maximized in its performance in the company,
causing a special burden to Ayishia Coles as the head of the Information section. So
that also has an impact on increasing the level of frustration in Ayishia Coles.

Ayishia Coles may also think that the system that has been implemented in the
company is not in accordance with what he wants. Like the implementation of a
decentralized system of corporate performance functions because according to him
it imposes a part of the central system so that it may be less agreed. It could also be
a disagreement between Ayishia and Marshall as President or CEO at FMB & T
which results in a problem or dissatisfaction with Ayishia Coles as the new

3|Page
 Assignment 1 – Introductory to Management

Baginda Mulana Simatupang

1911011036
representative. Then it could also be that the subordinates who are under the
authority and task of Ayishia Coles are not satisfied with the decision or options for
solving a problem in the information section so that it makes them in the unit unit
that does not accept the suggestions of the standards or it can also be suggested
suggestions or the decision of Aishia Coles is not in accordance with the topic of the
problem. It could also be what type of person Ayishia could also be a source of
frustration experienced by him. We do not know. So basically, according to the
things that cause frustration in Ayishia Coles, there is a level of communication in
an organization and the performance of the organization itself, if every
communication and performance are mutually sustainable then calmness at work
can certainly be obtained without conflict within the organization.

 Ayishia feels that her resposibilities and authority are unclear

 It staff was increasingly feeling underused
 Poorly defined problems
 Vagueness of their request
 Communication problems

The main organizational causes of the frustration that Ayishia Cole feels is that the
bank CEO has said that he would decentralize It but the current structure its in does
not allow the bank to function good that way. The departments are separated and there
are barriers that do not allow full communication. The bank departments needquick
responses however the way it is organized does not allow that to happen. One of the
work requests was very vague and didn’t provide a clear picture for a
solution.Communication is not strong among the IT department nor is it strong with
any other business.

2. If I were Marshall, I’ll make sure to clarify to Ayishia her responsibility since it is
my duty to delegate the responsibility at the time of her assignment. Also it is nice
to think about the organizational structure if we want to achieve the goal we set in
relation to IT.
The first I will answer Aishia Coles's request is in his request that crosses the line to
clarify the authority and responsibility. Because the assignment of a President or
CEO of a company is to solve problems that arise in the company and also the
president or CEO must clarify the basis of every action or statement to get

4|Page
 Assignment 1 – Introductory to Management

Baginda Mulana Simatupang

1911011036
confirmation in the resolution of decisions in communication organizations. I must
look for matters relating to Ayishia Coles 'complaints and listen to information from
other parties to find valid decisions and statements in clarifying Ayishia Coles'
requests. From every activity in the company and in the organization, it is necessary
to evaluate all the things that were lacking in previous work so that the future is
much better. Then give understanding to Aishia Coles to prioritize communication
between work units in the company to create harmony in the workplace.For me to
address the problem a complete overhaul of the organizational structure is
recommended since the communication between departments are not effective also
the IT department is underused and there is lack of efficiency in terms of
communication causing confusion to organization’s responsibilities. Marshall needs
to discuss to put plans into place but also He needs to remind Ayishia of her
accountability if the plans failed.

The environmental factors that would influence my decision if there would be if

there is a difference between my departments which is happening to FMBT&T by
disagreeing of different department, if there is lack of coordination within the units
and if the departments or the organization in general cannot adapt to change.

3. Sketch a general chart for the type of organization that you think would work best
for IT at FMB&T.

Divisional Organizitional Structure

Divisional Organizational Structure (Divisional Structure Organization) is an

Organizational Structure grouped based on similarity of products, services, markets
and geographical location. Divisional form organization is usually applied in
companies that are mid-scale and above, this is because operational costs will be
higher when compared to the form.
As with other organizational structures, this divisional organizational structure also
has several advantages and disadvantages.
With a functional structure, the organization forms semi-autonomous divisions,
where each division designs, manufactures and markets its own products. Each
division develops business unit level strategies and has production, marketing,
accounting and other functions.

5|Page
 Assignment 1 – Introductory to Management

Baginda Mulana Simatupang

1911011036
The function manager reports to the division manager who then reports to the
corporate manager. Division divisions are generally carried out on the basis of
product, geographical, and market / customer.

The advantages of divisional organizational structure include:

 Coordination between functions becomes easier and faster :
 Have flexibility in the company structure
 Specialization in each division can be maintained
 Career opportunities are more open

Lack of divisional organizational structure :

 While the lack of divisional organizational structure includes:

6|Page
 Assignment 1 – Introductory to Management

Baginda Mulana Simatupang

1911011036
 Resulting in decreased communication between functional specialization
 Very potential to cause competition between divisions
 Large delegations can cause problem

7|Page