Management Of Organization Theory- Case Study

Summary of the case The case is about the evolution of the law office of Jeter, Jackson, Guidry and Boyer. In 1992, David Jeter and Nate Jackson started a small general law practice near Sacramento, California after spent five years in the district attorney’s office. While they began the small partnership, there are only two attorneys and a paralegal. But, now it has grown to a firm that has more than 27 people in three different towns, which consist of 18 attorneys, 3 paralegals and 6 secretaries. 3 out of 18 attorneys had become partners. After some period, for the first time in the firm’s existence, the partners felt that the overall operation of management has lost control. Several factors had grown far beyond anything that the original partners had ever imagined. Then, attorney Jeter called a meeting with partners to discuss about the matter. Before meeting, opinions and proposed solutions were seek from the entire staff. Thus, the formal decision of the meeting is to create a new position, which is General Manager of operations with specific job descriptions. The general manager has to submit an annual report to the partners with specific action plans for improvement and change. Therefore, a search committee is formed and after two months, the committee offered Brad Howser, who is a longtime administrator from the insurance industry seeking for final career change and a return to his California roots, the new position. However, Howser stated clearly that he would only commit to five years employment and then likely retire. In the beginning days of Howser in the firm, he did not change anything but he more likely to observe the operations and get to know well with staff in the firm. About six months in the firm, he become more outspoken and assertive with the staff and started to change by establishes several new operational rules and procedures. He began by changing the regular working time. He is very strict on the new regulation implied. He does not care the staffs’ explanation and hurt them deeply. Furthermore, he shortens the length of time that it took to receive payment for services rendered to the firm’s clients. There are clients paid their bill in 30 days, 60days and even 120 days. Howser composed a strongly worded letter demanding for immediate payment in full or else legal action might be taken on those who did not respond. Although some payment were received soon after letter had been sent out but there are more letters and calls to complaint about the letter receive especially the customers, whom had been with the firm since its inception. Howser is given a budget on advertising and promotion for purpose of expanding client base as well. One of the paralegals suggested that he might need to consult several attorneys who knew well about the local market to plan the expenditure but he refused it and decided working alone because he says most attorneys know nothing about marketing. Besides, Howser had weekly staff meeting to try bringing all people together to form a team. Howser and most of the time talking about successful management techniques proven in insurance industry ran the meetings hour-long. In enhancing community relations, Howser is very generous with many local groups such as historical society, garden clubs, recreational sports programs and others by issuing checks and authorized donations more than $25,000 in less than 6 months. He believes these will payoff well in the future to the firm. In controlling cost, he reviewed each line item carefully. His intention is to increase revenues by cutting down expenses. He reduces attorney’s budget for travel, meal, and

entertainment, which is considered unnecessary by Howser. Then, he proposed that one of the two full time administrative assistant positions in each office should changed to part timer with no benefit and also posting new rules regarding the use of company assets. After completion of first year of his tenure, he submitted a summary report to the partners with what are required. The partners are impressed by his changes and performance in his position. They think they have done the right thing by hiring Howser as the general manager. But however, the firm previously that is high morale has now waning and disgruntled employees often meet up. This has reduce the employees performance severely. For marketplace, the partners did not expect the drastic increases of new clients and also did not expect to experienced shrinkage of existing client base. The partners discussed with Howser regarding the situation and Howser told confidently that it is a normal scene and in long term it has no doubt in achieving its entire goal. In the end, the partners are considering the decision of creating a new position and should they rely in Howser in his way of management. What they have started seems like wise, logical and smooth sequence of events which has turn to become crisis.