West Port Electrical Corporation

West Port Electrical CorporationPresented By,

About The Case:

James King, the supervisor of administrative staff budget section of Westport Electric Company, A large manufacturer and seller of electric and electronic products.The company currently has six staff offices like those mentioned and they are tasked with providing advice to top management and operating divisions as well as other staff offices. They also co-ordinated among the divisions depending on their areas of activity. These staff offices are budgeted using the companys budget approval procedure, which according to some of its officers like King, needs a lot of improvement.

OVERVIEW OF THE ORGANIZATION :

One of the largest producers and distributors of electronics in the U.S. Activities are divided into four groups, each group headed by a VP: Electrical Generating and Transmission Group Home Appliance Group Military and Space Group Electronics Group.

Overview of the Organization

Each group consists of a division led by division managers. Each division is a profit center. There are 25 divisions within the organization. There are six corporate departments and a separate staff department in Office, each staff department headed by a VP: - Finance Industrial RelationsLegal Marketing ManufacturingPR

The responsibilities of the staff departments include: - Advising top management Advise of the divisions and other divisions; -Coordinating responsibilities within their respective divisions.

Problem Analysis The shortcomings of review and approved the budgets of the ring divisions. The significant (incorrect) increase in the budgets of two staff departments.

To whom is it a problem? It is a problem for the entire organization. But especially for King James who works at the Department of Budgeting. 2. Why is it a problem? A lack of doelcongruentie the staff departments not perform optimally in the interests of the organization.

What should Westport Electric do about the evaluation problem raised in the case?Issues regarding the budget evaluation in Westport Electric Corporation.Increasing expenses didnt seem to be under control.James King -budget is sufficiently tight.The employees in the case study didnt seem to be satisfied with the kind of trainings taken by the IR department.The employee participation is important in identifying the issues in the organisation

ANALYSIS AND RECOMMENDATION:Top management actually pay considerable attention to the efficiency and effectiveness of each business division.Both revenues and costs must be calculated for each business segment.The training given by the IR division is not worth the money that they cost.The finance VP and the divisional controller should raise their opinion / objections to the proposed budgets if they believe it is not sufficiently tight.

ThankYou.