Morris Brown College is suffered from organizational and leadership crisis. Corruption and leadership crisis has thrown the organization in serious threat. Its financial crisis emerge to be mounting additional $23 million debt, effects are so awful that the cafeteria has been shutting down its usual runs out of food and the computer labs cautiously rationing paper as well as laptop computers and charging high cost to the students that ever before. The school is also in threat to cut down federal funding as it doesn’t pay back money. More than century old private school has been accused for misusing millions of federal money sanctioned for student financial aid. Its Scandals spread out all over the country and the attention of policy makers and media. This paper would focus on the organizational and governances of Morris Brown College and how the external factors in the societal context impinge on the internal environment of the organization and the leadership. It also identifies external factors and forces in the societal, stakeholders and internal conditions key political, social, demographic and economic forces and at least major changes or decisions. It also identifies the challenges that the pressures from these societal forces and stakeholder groups may suggest for the future.
Three major changes & Environment
Morris Brown College (MBC) a non profit education organization which established in 1885 and initially there were only one hundred and seven students and eight teachers. On the other hand now it has two thousand students. It is important to say that it has a historical background as it was second college for the American-African student. Basically, it was established for the development of the Christian education and culture among the American-African boys and girls in Atlanta. The ultimate goal of this college is to give learning opportunities in Christian atmosphere which can facilitate Negro to become fully efficient people in society.
In 1913, the major change has been occurred, that is, this College’s position has been changed to university in this year. This status has been approved the right to establish its subdivision and control these branches. As a result it can expand its operation any where to provide facilities of Negro students.
In 1960s, the students of this college play a vital role in the Civil Rights Movement. The Civil Rights Movement was at a hit the highest point from 1955-1965. For this Civil Rights Movement, Congress enacted several laws to protect fundamental rights and liberties explicitly such as the Civil Rights Act 1964 and the Voting Rights Act 1965 try to end discrimination between black and white. In this time Morris Brown College’s students actively fights for their rights for example Montgomery Bus Boycott (1955), student-led sit-ins, freedom to ride, Southern Christian Leadership Conference.
It is now treated as one of the most successful organizational institution. Comparing its status with current situation it can be found that now it has almost 450 faculties which demonstrate the major changes of this college. Now-a-days this college provides facilities to study on 30 areas. It also offer to study on science based subjects such as Physics, Chemistry, Biology, information technology, Nursing, Business studies and Business administration.
External Factors & Illicit Scandals
Per year the federal government provided financial aid for educational development of the students. Moreover, 80% of schools enjoy this facility and more than two thousand and five hundred students expected to receive this financial aid. However, Morris Brown College receives $8 million per year. In 2004, the former president has been charged for committing fraud. However, financial aid director could not exclude his criminal liability. The used the government’s funds for personal purposes and they misused their power by depriving students rights to get financial aids. They also expensed these funds to pay salary of personal staff or taking personal loan. Naturally, students were deprived to get this financial aid.
Seymour, A. J. (2006) said that number of union members including president of that college and teachers were charged for deceiving with the education department and students who could benefit from this fund. There were more than 34 cases against the president Dolores Cross and Singh who were engaged this crime. They were convicted for committing fraud such as they demonstrated that they provide aid to the students but practically the document was wrong. This document showed that these aids had distributed among the numerous students.
The main aspirations of Stakeholders of Morris Brown Collage
Johnson, G. et al (2006) defines stakeholders as stakeholders are those individuals or groups who depend on an organization to fulfill their own goals and on whom, in turn, the organization depends. Important external stakeholders would usually include financial institutions, students, suppliers, shareholders and unions.
The main aspirations of key stakeholders are developing profitability, increasing cash generation, value-added for investors, and to develop organic growth. Here it needs to consider how these have influenced Morris Brown Collage’s strategy. These key stakeholders have an economic relationship with Morris Brown Collage and influence the value creation process as members of the value network. There are some common conflicts between aspirations of stakeholders and Morris Brown Collage’s strategy. For example in order to grow, short- term profitability of Morris Brown Collage it is essential to sacrifice the pay level. To reach their goals stakeholders prepare a roadmap to achieving these objectives.
The major objective of key stakeholders is to generate profits and to achieve this goal their first target to enhance profit from operating activities (EBIT). Within 2009, by reducing or saving operating cost and by taking some initiatives to provide better service, they will increase profit. Here it is essential to consider that it has to refund $6.4 million to the government. It has some financial scandal which has significant effect on share policy.
Some times Morris Brown Collage’s strategy is more specific and changes if necessary when key stakeholders aspirations to rising cash generation. Before December 2008, their aim to decreasing its net working capital by $710 million and from the disposal of real estate they will generates cash more than $1 billion. However, key stakeholder’s aspirations only help to fix the target but to execute their plan it is essential to develop strategic planning. So when key stockholder’s aspirations have influenced Morris Brown Collage strategy.
Unions are responsible to shareholders but also be responsible for relationships with key stakeholders and take into account their interest. In 2007, Morris Brown Collage proposed to increase dividend maximum 20% that is $0.90 per share for shareholders. They also suggests to increase the dividend for next year because they the expected enlargement in net profit. The dividend policy of Morris Brown Collage will be determined by the boards in guidance with the German Commercial Code.
Organic development is one of the main aspirations of key stakeholders. Johnson, G. et al (2006) argued that a development method is the means by which any strategic direction will be pursued. These methods can be divided in to three types and these are internal development, acquisition and joint development. For Morris Brown Collage development has been the primary methods of strategy development. It aims to apply the strong platform as current year it creates springboard for organic development. It spread its activities not only the EU; its expanding activities also cover the area of Asia Pacific. This development demonstrates the strong position of the company all over the world. It provide service almost 116 countries and there are 350 new service managements were engaged to improve their service. To improve performance and satisfied the student, Morris Brown Collage developed its service scientifically for example from internet student always get updates about their mails and if necessary they can contact to get student service.
Challenges for Morris Brown College
DeCenzo, D. A. & Robbins, S. P, (2008) stated that, Organization is a consciously coordinated social unit, composed of two or more people that functions on a relatively continuous basis to achieve a common goal or a set of goals. Management gets things done through other people. They make decisions, allocate resources, and direct the activities of others to attain goals. Management do their work in an Organization, which is a consciously coordinated social unit, composed of two or more people that functions on a relatively continuous basis to achieve a common goal or set of goals. To overcome the current crisis, Morris Brown College has the following challenges:
- Planning: Regarding Morris Brown College s exists to achieve goals, someone has to define those goals and the means for achieving them, management is that someone, a process that includes defining goals, establishing strategy, and developing a comprehensive set of plans to integrate and coordinate activities.
- Organizing: Unions are also responsible for designing an Organization’s structure. This function is called Organizing. It includes determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.
- Leading: Every Organization contains people, and it is management’s job to direct and coordinate those people. Morris Brown College has its leading function. When managements motivate employees, direct the activities of others, select the most effective a communication channels, or resolve conflicts among members, they are engaging in leading.
- Controlling: The final function managers perform is controlling. To ensure that things are going as they should, management must monitor the Morris Brown College’s performance.
Foot, M., and Hook, C. (2005) explained that the actual performance is then compared with the previously set goals. If there are any significant deviations, it is management’s job to get the Morris Brown College back on track. This monitoring, comparing, and potential correcting is what is meant by the controlling function. So, using the functional approach, the answer to the question- “What do managers do?”- is that they plan, Organize, lead, and control.
Suggested Structural Change for Morris Brown College
To overcome the crisis of Morris Brown College, it required to bring substantial changes in it structure. To identifying the required changes this paper would apply Kotter’s eight-step process of change has illustrated to clarify the process and to draw the appliance procedure in case of Morris Brown College. Literature review of this paper has designed into eight parts to bringing the changes as bellow:
Establishing a sense of urgency
The primary step of Katter’s theory is to urgency design. Motto of this phase is assisting connected people to be aware of the motive of change and took significance exploit directly for that purpose. Central challenges of change are three anxiety, elevated complacency, and anger. High possessions of innovation, trench out, trained relevant peoples along with urgency; shift away and so on could develop urgency sense or magnify urgency. For relevant in case of Morris Brown College where as larger organization, this stair articulates that identify the crisis for that the organization need to make change and to do this it is important to develop an urgency as a result Morris Brown College can make over that crisis.
Challenges of establishing a sense of urgency
Challenges of establishing a sense of urgency for Morris Brown Collage could be identified as:
- Political: Any political condition changes the organizational environment, increase or decreases the risk. Suppose if Government wants to hike up the recent US recession for political turmoil, it has adverse impact on the Morris Brown Collage. Recently US has bail out bill must has direct impact on the Morris Brown.
- Economical: The SACS’s policy changing in the Accreditation can direct influence over the Morris Brown collage. This will change the money supply in the US education market. Like Morris Brown and other schools will take more loans from financial institutions and can invest in their specific concern. So, changes in the economical situation, affects the investment strategy of the organization.
- Social: Society, people, friends etc changes the economic conditions. Their attitude, and behaves demand has a direct relationship with the educational institutes. In Atlanta people are changing their attitude for Morris Brown collage. So, this situation can change the institutional structure. New subscriber base will be declining. In Atlanta mass people attended in a fundraising procession and the drive aimed that the school have to get better relations with former students to achieve the target of elevate $50 million by next five years
- Demographical: Changes in the demographical structure will impress a direct shock in the organization or in overall process. The quality of services would increase as more corrective steps can be taken through black African-American. 80% Morris Brown College students numbered 2,500 in Atlanta kept without federal finance. The SACS2 urged for cancellation accreditation of Morris Brown College, it spread out a great impact of demography
Construct guiding team or alliance
Robbins, P. S. and Judge, A. T., (2004, 227) explicate that for guiding the change it is significant to ensure that selected team is enough influential to lead. Moreover, the team attributes several means of skill. They have leadership skills, influence, integrity, analytical expertise, communications ability, and action of preconception. With the selection of urgency, chosen team or group should start their mission or course of action with commitment and trust. As Morris Brown College should involve high-quality teams, the selected team also becomes skilled at to operate their jobs to reach Morris Brown College’s requisite goal.
Developing a vision and strategy
Morris Brown College put in plain words that third step of changing process is to develop vision and strategy. Vision of an Organization describes future identity and the strategy expresses how to achieve this vision or ways for that vision. For that reason an organization must know the answer some indisputably questions such as what is our aim or target spot. What should our future product and service, technology and customer focus and what category of project do we want to achieve in long term?
Communicating the change vision
For Morris Brown College it is argued that to carry out vision and strategy a strong communication must be needed. Most of the ineffective cases organizations not succeed to attain their vision for the reason that of poor communication. In this footstep, Organization needs to persuade understanding, offering individuals’ significant accumulations of energy for free of cost as well as expand promise at a superior stage. For an organizational change, key features are reappearance. Symbols of representing the organization strappingly and several time agreements are most expensive than keep promises.
Empowering employees of board-based action
Morris Brown College supported that the task of this stage is not distribute power its task is to take away difficulties through self-confidence. Change is weakening when frustration enhances. Central issue of this step is to allocate tasks to the right placed people who are relevant amongst urgency.
Generating short-term wins
For Morris Brown College it is pointed out that for generate short-term wins employees need to effort as their vision for long-term benefit. Sometimes attain wins is a long-run process. For this, organization’s attempt as a whole occupies resources, reliability. Any effort could go under water for the lack of structured method and selecting preliminary projects cautiously.
Consolidating gains and producing more change
Morris Brown College has merged with short-term wins organization should drive for further change where necessitate. Sometimes people want to do several tasks promptly and this is the reason of letdown in many of the cases. In such cases, it is better to scheduled rationales of breakdown correspondingly and then takes action to conquer those. To achieve the schedule the work must be distributed or shared amongst relevant people.
Anchoring new approaches in the culture
Morris Brown College has given explanation that the last step of changing process is connecting or anchoring new approaches in organization’s culture because of change leadership. Orientation, sharing values, behavioral change, performance appraisal, rewarding through promotion and so on are the factors or systematic approach for developing new culture within a short time.
Managerial attitudes of the Organization
To work in the Organization employees of the Organization have faced some interpersonal problems. These are shown as bellow:
- Functional groups face an invisible barrier when working because there are a lot of stress and conflict among them.
- Not only functional groups but also engineer and quality groups are involved in conflict.
- Hierarchy and the lines of reporting and management responsibility are not organized or disciplined.
- There is nobody to consult about strengthen of the functional group.
- Lack of pay attention in better communication.
- There are no direct functional boundaries among small management groups for accountability of business.
An Organization’s internal structure contributes to explaining and predicting behavior. That is, in addition to individual and group factors, the structural relationships in which people work has bearing on employee attitudes and behavior. Strategy, size, technology, and environment determine the type of structure an Organization will have.
- For a sound accountability this Organization needs to centralize its Organizational structure.
- Maintain a direct functional boundary among small management groups.
- Remove all types of communication barriers.
- To consult about strengthen of the Organization strategy of the functional group has changed.
- Formulate a disciplined hierarchy for management responsibility and reporting.
- Root out the conflict between quality group and engineering group for better performance.
- To remove stress and conflicts change the working shifts in factory.
As an Organization Morris Brown College is a deliberately coordinated social unit, self-possessed of with diverse department more people that functions on a comparatively continuous basis to achieve a common goal to overcome the recent crisis. Management gets things done by other people. They formulate decisions, distribute resources, and direct the actions of others to accomplish goals. Management do their work in Morris Brown College, which is a intentionally corresponding social unit, composed of two or more people that functions on a relatively continuous basis to achieve a common goal or set of goals. By this way the Morris Brown College can overcome organizational and leadership crisis. The corruption scandals and leadership deviation and the organizational risks should be minimized and the Morris Brown College would also be able to come out from the threat of cut down federal funding as well as paying bills. Thus the present administration would take this paper as a helpful guide.
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