Understanding Management
Understanding Management
11th Edition
ISBN: 9780357033821
Author: Richard Daft
Publisher: South Western Educational Publishing
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Chapter 11, Problem 4AYSSL
Summary Introduction

To select:

The statement "A good leader can safeguard an organization from performing poor even in situation of recession or bad economy" is "Mostly false" or "Mostly true".

Introduction:

Recession refers to the period when the conditions for business are bad and the economy of a country is declining and not successful. During this period the industrial and trade activities are generally reduced.

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At the end of 2014, a large university hospital in the Netherlands launched a procurement tender exercise for surgical suture material. The rationale for hospital management to initiate this procedure was cost-cutting and standardization. The award criteria were focussed on the most economically advantageous tender. There were different suppliers on the market that were able to produce and deliver high-quality surgical suture material for a lower price than was currently being paid. Consequently, the tender was awarded to a new supplier. The top managers and purchasing manager who initiated the tender trod carefully and implemented this relatively small-scale change initiative according to some basic change management principles (e.g. Kotter, 2012): they built a guiding coalition that incorporated renowned medical specialists, they consulted department heads and they communicated the change to surgeons through different channels. Furthermore, it was recorded in the tender that the new…
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