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Diego Has Been Hired as a Consultant to Review a Company's

question 12

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Diego has been hired as a consultant to review a company's contracting and purchasing procedures. He began by reviewing recent contracts that were awarded and ones that the company lost. He also interviewed employees in both units to ascertain if there were any concerns regarding process, work flows, communication, and expectations. Diego learned that the company had a reward system in place for the number of contracts awarded and bonuses for higher amount contracts. Diego recommended a new system that rewarded contracts that benefitted the company's mission, regardless of financial amount. How was Diego applying the systems model of change?


Definitions:

Licence to Sell

A legal authorization or permit granted to an individual or business entity to engage in the commercial sale of goods or services.

Customers

Individuals or entities that purchase goods or services from a business.

McDonaldization

A term used to describe the increasing presence of the fast-food business model in common social institutions, characterized by efficiency, calculability, predictability, and control.

Rationalization

Rationalization is the process of replacing traditional and spontaneous methods of organization with calculated, efficient, and logical processes, often highlighted in modern social structures.

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