Q1) which approach to Organizational Effectiveness can best be used to explain the nature of conflict between Jim &

Dagny? How? ANSWER 1 Jim and dagnys vision are totally opposite to each other and there is a huge conflict present in their perception. Here the system resource approach to organization effectiveness can be best explaining the conflict between Jim and Dagny. The system resource approach is emphasize on ends are part of several criterion .when you improve your process and stabilize on your input then your end result automatically improves. Jim Taggart emphasizes on traditional approach. He practices and follower of maintaining standardized practices that have been highly effective in gaining the position the company. Jim wants to continue with the past practices and is a bit unresponsive about incorporating a new technology in the Railroad business. He wants to continue using the coal engines. Jim is unwilling in using any kind of new technology as he fears that large amount of money will be wasted if the technology does not deliver the preferred outcome. This can be justified by Jims actions of utilizing normal forms of steel in its rail tracks and discarding any kind of research into finding other alternatives. In term of internal state of the company Jim is a firm believer of centralized control and authority all decisions flow to the strategic epics and board of directors share these sentiments of Jim. Dagny welcomed change and restructure the way she wanted. She was admin in utilizing a new technology to improve the operations of the company. Her actions can be justified through her support for diesel engines for all the trains, partnerships with company like Reardon steel and the emergence of new R & D department for the company. Dagny wanted to try innovative resources for shaping up the operations of the railroad she wanted to improvised the rail road industry and take it out of its traditional approach and give it new direction. She greatly favored bringing new energy in the company and given a worker the authority to make on the spot decisions like in decentralization that can increase the efficiency of the companys operations. In the end you can say that Jim and Dagnys approach towards running operations of the company are totally different from each other Jim prefers keeping traditional system of work whereas Dagny had a completely innovative mind.

Q2) Out of the two, who is more sensitive to strategic constituencies: Jim or Dagny? How? ANSWER 2 In our opinion dagny have more leaning towards strategic constituency as she wanted company to be proactive rather than reactive as things are changing rapidly in corporate world and in order to continue operation in a smooth and steady manner she wanted to take some strategic decisions like introducing fast diesel engines, laying of tracks with a new metal providing cost effective around 40% as well as strength effective features if we see jim who wanted to maintain the present approach of cost effective travel with coal engines, not much focused on slow speed dagny wanted to have healthy coordinated relations with suppliers and buyers to make companys operation sustainable in the sense for any situation which hampers supplier/ buyer management whereas jim thinks that this approach is a threat to organization in view of being recognized as monopolistic approach taken by the company. Q3) Which Structural Approach is best suited to Taggart Transcontinental? Why? ANSWER 3 Here we can identify that the functional structure approach would be the most suited to the operations of a Taggart. When you see the current practices of the company the functional structure provides the vision for carrying out the companys operations with a smooth flow. The functional structure is best suited when there are singular or few products involve. In this case the company specializes in rail road networks which included railway engines and construction of railway tracks. As per the vision of the president of the company controlling cost and providing economical service to customers is the targeted goal. This can be achieved by attaining economies of scale to various function department of the company. It favors a centralized control which means top management has significant power and all decisions flow through the top level management. It allows for specialization that leads to high degree of skill development in particular area and a flow on knowledge within particular departments. This structure helps to facilitate the running of current operations and is not largely effected by other environmental factors.

4) Do you agree with Dagnys approach to restructuring the organization? In either case, provide arguments. ANSWER 4 Here we think the decision taken by Dagny to restructure the organization is correct, because if she re-structures the organization, it would minimize the cost of the organization. She would cut down the lateral differentiation so that the differentiation would be low and it helps in bringing improvement in Communication, coordination and control. She has also merged different overlapping specialization into one Department.you can clearly see that, she had merged two different departments Maintenance and Engineering into one department. She had also set up a new Department known as Research and Development (R&D) who was handed to the young inventor, named as John Galt. In this department different scientists are doing research on Electric power engine, if this will be successful, then the engines will be able to run at the speed of 100 miles per hour, which would be more from the Diesel trains which run at the speed of 60 miles per hour. So the decision of Re-structuring is fruitfull and it would minimize the cost of Taggart trains in the future. Q 5) Where would you place Taggart Trans within the four models of effectiveness? Illustrate with justification. ANSWER 5 The Best model which is suited to Taggart is Open systems Model. Open System Model is suited because Taggart Trans approach is to grow the company. The company was usually following the Stable Environment from the last Half Century. They are not innovating anything and even the railroads are not changed. The only changed is of Converting of Sluggish engines to faster Diesel engine. So Dagny want to convert all coal engines into Diesel engines. She also wants to change the employees and so she starts staffing the new, young and talented employees for the organization. Dagny does a proper resource acquisition, she has consume proper resource allocation, first she contact with Reardon steel, and give him the contract of supplying steel tracks, so that the rail tracks would be of Steel. Another point which is to be noted is Reardon is trying to innovative an Alloy which will be known as Reardon metal. So Dagny announces that her company will be the first one to purchase this alloy. Open system also have the characteristic of Flexibility, Taggart is also following the characteristic of flexibility as there are getting changes day by day of new innovations. Dagny also acquire the resources of oil and she had contacted Wyatt Oil for this.

Ellis had assigned his entire distribution to Taggart Trans. In the end, Taggart is changing their structure and it is expected that there would be a great growth in the Future.

Q6.Compare & Evaluate Jim & Dagnys vision for Taggart Tran with respect to Porters Competitive Strategies ANSWER 6

Jims vision Low cost leadership: According to our opinion Jims vision was based on low cost leadership strategy. He favors a firm command and control structure within the firm with centralized authority concentrated in his office or with the Board of Directors. Jims always wanted to provide reliable service at affordable prices to both consumers and cargo. Jims believes in high formalization and believed in low empowerment of employees. The procedures currently in practice mean that every time there is a breakdown or a holdup, the line managers and technicians concerned have to get in touch with Operations for decisions like sending a replacement engine, or readjusting train schedules due to various contingencies. This shows that employees have very limited decision making power every time they faced any problem they have to concerned with their high authorities to approval of any decision Dagnys vision Broad Differentiation: We think that dagny vision was based on broad differentiation at many places her decision was based on innovation. Dagny was the first person who announced that as soon as the Reardon material is introduced she would be the first buyer who purchased this material instead of steel to lay 60 mile stretch of track in Texas .This Reardon material is itself an innovative alloy. She believed in employees empowerment so employees take decision on the spot in order to cope up with the situation for example breakdowns or holdups. She set up a new R&D wing under the care of young inventors so this company would able to bring some innovation in their services. We observed that the department working on a new electric power engine at that time. She always tried to maintain taggart Trans name for its technological leader ship. Like the project of Reardon metal and electrical power engine.