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Hill Enterprises

  1. Business management issues or problems

Long working hours and overstretching the workforce — Robert Hill worked for long hours and made the employees do the same and did not decentralize or disseminate work. Although it comes with increased salaries, it renders the workers ineffective. All employees need time to rest and work should be divided to make it easy to perform, and the output is quality

Poor working conditions — Hill Enterprises set up operations in an old store building whose physical working conditions were poor compared to those of competing organizations. Poor working conditions discourage workers from performing well.

Lack of a realistic goals or objectives of the enterprise — He had one goal making profits and save the money in his personal account so as to retire early. However, this was a personal rather than organizational goal. After he turns forty, the business would then have to stop operations although it can operate for longer years.

Poor financing strategies — He quickly expanded the business without adequate working capital and he was forced to bring in a new business partner as the capital was not enough to meet the operations.

Poor communication — After Mr. Hill had taken charge of other activities, the new managers did not communicate with employees effectively. They would converse personally among the two and would point gestures towards machines and individuals. Proper communication is effective for achieving organization goals.

Lack of work schedules and procedures — there were no effective scheduling procedures or channels of responsibility and authority to guide employees on what each of them is supposed to do and at what time.

Poor transition strategies — Bellows made a series of changes in procedures to the production employees. These changes were implemented without consulting any of the employees on the production floor, which led to a disagreement between management and staff.

Lack of proper problem-solving techniques and motivation — Bellows’ personal contacts with individual employees were minimal and rare. He provided quick and forceful answers to any questions or problems that might be brought to his attention. When employees are not motivated their loyalty and commitment to the organization may be lost.

  1. Business management frameworks, theories or models applicable to the case

Systems Theory

This theory suggests that different systems or operations affect workers differently. Managers should understand how different systems affect. Systems theory guides managers and enables them to examine trends and operations in the organization. Thus, this helps management to coordinate tasks and work collectively for the whole organization and achieve the overall goal of the organization rather than for specific departments.

Chaos Theory

Change is inevitable in organizations. This theory outlines that in the for team goals to be achieved, various changes have to be implemented at some point. Chaos theory recognizes that change is inevitable and should be properly controlled in line with the goals of the organization. (Broom & Longenecker, 1975) While organizations grow, complexity and the need for reducing costs and efficient production increase. Organizations increase efficiency in operations to maintain the new level of complexity and operations.

Theory X and Theory Y

These two theories tend to focus on the behavior of employees towards work. The way a worker does operations and activities is strongly influenced by beliefs about worker attitudes According to theory x Managers who believe that employees naturally lack the focus, motivation, ambition, and incentive to increase productivity, tend to provide the essential elements by continuously being in contact with employees, motivating them and encouraging them to work.. Theory Y believes that workers are self-driven and are responsible and they should not be provided any influence to perform. While managers who believe in Theory Y values prefer being authoritative, Theory Y leaders encourage participation from workers.

  1. Solution to the management issues and problems

Mr. Hill being the manager should provide a work schedule and duties roll that should guide the employees on what to do and the time. He should also disseminate work to the various employees and not handle all the workload by himself. There should be a proper work schedule with time for rest for employees. The old building should be renovated and appropriate measures put in place to ensure it offers a good working environment to the employees. Management should come up with organizational goals and objectives which should be incorporated in the mission and vision statements of the Enterprises to guide the organization and enable long-term decision making of the organization. Proper financing strategies should be adopted. The small capital available should be used to expand the operations of the organization gradually so as to reduce financial constraints that come with rapid and quick expansion. Proper communication means should be adopted where communication is made openly to all employees, and the employees should be given considerations in decision making and allowed to voice their opinions. Therefore, this would enable achievement of the organization goals. Changes in operations should be communicated to the employees, training offered and their concerns with the new operational ways addressed. Changes in methods of operations affect employees in the area directly, and they should be communicated to effectively. Management should motivate employees and maintain constant communication to develop good relations. Any disagreements should be well addressed.

4 A. Environmental legislations/ regulations applicable

The Organization of Working Time Act 1997 which states that the maximum average working time for employees should not exceed 48 hours. However,this does not mean that a working week can never exceed 48 hours, if there are overtime working hours, it should be clearly communicated to employees and proper compensation put in place if necessary.

The Working Environment Act emphasizes that individual workstations should be structured in a way which will not force employees to leave the organization due to inability to work properly and stress. Factors which may lead to health risks must be eliminated. It is the responsibility of the employer to ensure proper working conditions

Workplace diversity policies outline that it is critical to support organization intentions, goals, and objectives with policies and procedures. Policies and procedures show the values of the organization and provide everyone with a formal procedure to follow.

Work equipment and tools Regulations provide that according to the operations of an organization, management should provide work equipment for use, manage the risks from that equipment, ensure equipment is only used for suitable purposes, ensure work equipment is well maintained in efficient working order and repairs are done.

4 B. Opportunities

The business enterprise could take advantage of the following opportunities to increase performance and efficiency.

Offering training on skills that can be used to improve the business where employees are trained on how to perform new operations, use equipment and tools to perform operations effectively. Competitor analysis is also an opportunity where the organization can research about other similar businesses to see what has worked for them. Networking with other business owners or managers in the industry, which will enable sharing of ideas, and may lead to acquiring of important management knowledge? Attending business related workshops, conferences and events may also be important in updating knowledge. Lastly Reviewing organization goals and plans to identify opportunities for improvement. As the operations change, the management could review the goals and objectives of the organization and change them according to the operations of the business and for long-term decision making.


Broom, H. N., & Longenecker, J. G. (1975). Small business management. South-Western Pub. Co..