The Uvex Corporation was a small family-owned medical center on the southwest coast and as the business becomes flourished, the company restructured the organization for better service for its patients. Since after reorganization, Alex Fuhrman was worked as head the administration of the cancer research and treatment division. Christopher Hibbs, previously worked as a bookkeeper for the city of Sacramento, and currently hired to be an accounting manager for the West Coast division. Frederick Fontaine, the Manager of West Coast, has found a memo on Hibbs’ desk about doubt Alex was the person who cause fund missing since Alex was the director of accounting and finance. The unavailable communication between Alex Fuhrman and Christopher Hibbs caused Alex commence a libel suit against Hibbs and the Corporation. Frederick needed to find a solution before nine o’clock the next morning.
There are several problems that causing the “Hibb’s Web” case deterioration. First, there are conflicts between functional structure and divisional structure after reorganization. Christopher Hibbs has to compile monthly statements for each department whereas he was hired as an accounting manager for the West Coast division. Also, instead showing the financial reports to the Frederick, Hibbs sent it directly to the executive controller of Uvex.
Second, inattention and failure of management was another problem in this case. When Hibbs want to make numerous changes to the accounting system that Alex installed, Frederick was not convinced that Hibbs was adequately qualified to alter the process. As the time passed and the department heads appeared placated, Frederick forgot his worries. Second example is when Frederick found the m...