MBA 765 - Reflections on Module 3 Concepts

When choosing the best option for organizational closure, what categories of selection criteria seem particularly important to employ?

One of the most important categories of selection criteria to utilize is reviewing alternatives. When closure looms, it is in the best interest of the organization to pursue all alternatives. There may be other possibilities than simply closing the doors, so every alternative should be pursued. The company should also be aware of what assumptions are being made. Assumptions can often lead to bad decisions. Everyone should be operating off the same set of facts, not assumptions.

Where would you look for possible organizational closure strategies?

There are many strategies that can be employed during closure. Outright closing down the business is obviously one choice, but many other strategies exist. Perhaps a sale of the business to another more profitable organization might be the key. Or more beneficial to the closure organization may be looking into mergers or joint-venture opportunities. These would allow the business to continue providing products, just under new names.

What are the dangers involved with identifying and selecting among closure options?

Probably the biggest danger is selecting the wrong option. Reading the facts wrong or making incorrect assumptions could lead the business to make closure choices that may not be necessary. The organization might choose to close its doors because no research was done that would have shown a viable opportunity in a merger. Closure is often done without a lot of research because companies are on the verge of financial meltdown. This can result in hasty decisions being made with little or no review.

What emotions are likely to surface during the process of identifying and choosing among options? How would you deal with them?

Probably the biggest emotion that will surface is dealing with the “human factor”. Most people are very emotionally attached to those they work with, and often managers are very tied in to their reports. When options for closure are chosen, the well being of employees can often be an emotional factor that will surface. In these cases, I would try to find the best middle ground possible. I would do everything in my power to select an option that will meet the closure needs of the company but will also take into account the well being of employees.

November 25, 2007 | Filed Under MBA 765 

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