Business Studies

onors Students: Complete this assignment according to the directions provided in the “Honors Addendum,” located in Course Materials.

Refer to the “Freeman-Brown Private School Case Study” document for details pertaining to this assignment.

The board of directors at Freeman-Brown Private School (FBPS) has hired you as part of a consulting team to review the situation and present your findings and recommendations. Write a paper (1,500-1750 words) that discusses the case. Complete this assignment from the perspective of the hired consultants. Respond to the following questions:

Review how organizations interact with their external environment (as open systems and complex adaptive systems). How effective was Freeman-Brown as an open system at the time of the closure? How effective was Freeman-Brown as a complex adaptive system at the time of the closure?
Review your reading this week on the internal environment of organizations. What is your evaluation of the organizational culture and organizational climate at the time the decision to close two campuses was made?
What is your evaluation of the decision made by Dr. Murphy and Caudill? What is your evaluation of the process of going about the closure?
Was FBPS demonstrating social responsibility? Discuss the closure impact on three specific stakeholders.
Provide an explanation, using appropriate management theories, for how the administration could have handled the closure effectively with stakeholders? Include one theory from each of the following: the classical approach, the human relations approach, and the modern management approach.
You have been asked to suggest two goals: one long-term and one short-term goal for the future direction of FBPS. Justify your decision.
Present a concluding statement that integrates the 4 functions of management as a means to revamp management at FBPS and meets the recommended goals.
Use at least two academic resources as references for this assignment.

Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.

This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

You are required to submit this assignment to LopesWrite. Refer to the LopesWrite Technical Support articles for assistance

ANSWER

Freeman-Brown Private School Case Study

Organizations and the External Environment

The interaction between an organization and its external environment is crucial as it determines its functionality and success. As open systems, businesses ensure that they are in constant communication with external agencies. This facilitates the flow of information and resources. Any move or decision that needs to be made attracts an interaction between the organization and the external partners. In a complex adaptive system (CAS), firms are defined by dynamic networks of interactions that they need to fulfill when making vital decisions. CAS incorporates an interconnected whole, and organizations are expected to operate in an emerging ecosystem (Turner, Baker, & Morris, 2018). Firms witness abrupt structural changes in a CAS. The case of the Freeman-Brown Private School (FBPS) attracts both the open and complex adaptive systems. FBPS did not evidence the open system framework at the time of closure since it did not engage with the parents regarding their intended move. The management conveyed the closure information to the parents without prior notice. Freeman-Brown had a complex adaptive system at the time of closure because it faced numerous issues that determined its decision-making. For example, increased competition, economic recession, and low enrollment are some of the reasons that supported the decision to close the campuses. They created a complex system that affected an effective and successful engagement between the organization and the parents.

FBPS Internal Environment

When the management decided to close down the two campuses, FBPS lacked an effective organizational culture and climate. If they had an excellent structure in place, they would have been better positioned to inform all the stakeholders about the postulated move earlier. It lacked a quality structure that manages its functions. For instance, the error e-mail sent to the parents regarding the move to close Staunton Campus is evidence that the organization lacks an effective system and structure. Such an error indicates the absence of values and excellent practices cultivated over time. If a quality culture existed, the error would have been avoided as everyone is committed to achieving the intended milestones and objectives. Notably, it shows that the organizational climate is adverse. After the withdrawal of the e-mail, the head of the school retired. The move reveals a clash of interests at the managerial level. The newly elected school administrator reassures parents that the Staunton campus will not close down. Still, they later receive information that the institution will close at the end of the semester. The series of events occurring in the organization reveals that it failed to integrate a quality organizational culture that can establish a conducive climate.

Evaluation of Dr. Murphy and Caudill Decisions

Dr. Murphy and Caudill’s decisions fail to align with the interests and welfare of the learners and their parents. As individuals at the top-leadership level, they should have portrayed increased concern over the campuses’ abrupt closure. This called for an immediate move as soon as they considered the closure idea to avoid inconveniences. The parents had been assured that the campus would not close down, giving them a sigh of relief. Dr. Murphy had confirmed this decision when she was elected as the administrator. As the owner, Caudill was responsible for engaging the parents to inform them about their intended move to close down the campus. However, the two decide to close down without informing the parents early to enable them to make prior arrangements. The closure is a wrong move because the management does not provide an ideal rationale for it. The administrator says that the closure was due to “demographic reasons” and not due to finances, as the parents presumed. This leaves the parents and other stakeholders unable to understand why the campuses closed down. The whole process for the closure is a wrong move that the management undertakes. It would have been appropriate if they reached out to the parents for a discussion so that the parties involved can come up with an excellent solution that benefits everyone. This would have catered for the institution’s welfare and interests, learners, parents, and the community at large.

Social Responsibility and Three Stakeholders Impacted

FBPS fails to demonstrate social responsibility. It has the responsibility to meet the needs of the learners. Its decision to close down affects the students, their parents, faculty members, and the entire community. Any institution is expected to be socially responsible towards its stakeholders and always involve them in decision-making processes. In this case, FBPS does not involve the stakeholders when making the decision, neither does it communicate the intended action to allow everyone to adjust accordingly. One of the highly affected groups is the learners who might encounter challenges finding opportunities in other schools. The timing of the closure did not favor them, and a majority of them could lack opportunities in other institutions or travel for a long distance. Besides the children, parents also stood to bear a significant burden. For instance, some had paid for an entire academic year but would not receive a reimbursement for the same. They would need to meet an increased cost after moving their children to the new schools. Notably, their children’s trip to access the closest campus was another issue of concern for the parents. For instance, these learners are likely to suffer emotional and psychological problems due to the long time spent on the road. The faculty members is another largely affected group.

The closure of the institutions would leave many people jobless. When the nation was experiencing an economic recession, the loss of job opportunities would extensively affect the faculty members. For instance, teachers and the support staff members would experience financial challenges and reduced living standards, especially among those who would fail to find opportunities. They have played an active part in transforming the institution, and the best thing that the management could have done was to inform them prior to the closure. Overall, students, parents, and staff members exist as the key stakeholders affected by the closure.

Handling of the Closure Effectively with Stakeholders

Involvement of all stakeholders would have been a perspective that the institution upholds always. The administration should have communicated, liaised, and involved the stakeholders in the decision-making process. This would have paved the way for vital decisions and preparedness on the expected change. For example, if the parents were involved, they would have searched for other learning opportunities early to avoid inconveniences. The faculty members would have commenced the search for other working opportunities pending the expected closure. One of the key classical theories incorporated in this perspective is the administrative theory. Fayol’s theory advocates for management education (Heames, Pryror & Taneja, 2010). The theory provides leaders with insights that enable them to change their leadership tactics. This theory is useful in ensuring that the administration adopts appropriate actions to handle all the stakeholders in the right way. In the human relations approach, Theory X is vital in enabling the administration to organize the institution to advantages all the stakeholders. Lastly, in the modern management theoretical group, the systems approach is an important approach that would have enabled the management to do the right thing. It provides the opportunity to streamline structures, processes, and all activities with the primary aim of meeting the expectations of its stakeholders.

Short and Long-term Goal for the FBPS

One of the short-term goals that the organization should consider is to incorporate the affected students in other campuses for a short while as the parents prepare themselves and their children for the change. This is an ideal short term that is expected to benefit the parents, children, and the institution. It would give parents ample time to find other learning opportunities for their children. The organization will retain its brand name and image. As far as the long-term goals are concerned, the institution should consider partnering with another educational service provider to enhance the continuity of its operations in the closed segments. The closure is expected to have a detrimental effect on all the stakeholders. To reduce the burden, the organization can consider a collaboration to meet the community members’ needs and interests. The educational goals of some of the learners stand at risk. For instance, those spending a trip of 40 miles twice every day to access schooling might fail to meet their desired goals due to fatigue. Thus, it would be advisable for the management to consider such a concern and develop a solution that guarantees sustainability.

Concluding Statement

FBPS should ensure the affected students find viable opportunities in the other educational centers as they find any available opportunity or collaborate with any other educational institution for growth and sustainability. The organization has a responsibility to all its key stakeholders, and the closure decision fails to meet their interests and welfare. The inability to provide a convincing reason behind the closure shows that the management disregards their concerns. The ideas generated by the parents exist as suitable steps that the management can take to avoid adverse outcomes. Thus, it should consider extending its operations for one year to enable parents to adequately prepare themselves or partner with another provider to enhance continuity and sustainability. The integration of the four management functions comes in handy with revamping the management to meet the proposed goals. These are planning, organizing, leading, and controlling.

The organization should effectively plan to avoid inconveniences. It should have goals and objectives at hand each financial year that should be communicated to all the stakeholders. This will ensure that everyone is at par and understands the expected processes. The other crucial element is the organization. FBPS appears to lack adequate organization, as indicated by its culture and organizational climate. The integration of quality organizing tactics would enable the organization to develop smooth daily operations. It also allows the management to react accordingly to emerging challenges. The other crucial managerial function is leading, whereby the organization will stand the opportunity to develop excellent forms of leadership. The primary goal is to ensure that the top-level comes up with quality policies and frameworks that allow the institution to meet its intended goals and objectives. Lastly, the control function will streamline all the activities to meet the set plan.

References

Heames, J., Pryor, M. G., & Taneja, S. (2010). Henri Fayol, practitioner and theoretician–revered and reviled. Journal of Management History.

Turner, J. R., Baker, R., & Morris, M. (2018). Complex Adaptive Systems: Adapting and managing teams and team conflict. Organizational conflict, 65-94.