Super Clean, Inc. was started a number of years ago by Meg Collins to provide cleaning services to both large and small businesses in their home city. Over the years, as local businesses reduced underutilized building maintenance staff, more and more cleaning services were subcontracted to Super Clean. Super Clean also expanded into other building services such as painting and local moving. Super Clean maintains a pool of skilled workers who are contracted to perform the noncleaning services because these services do not recur on a day-to-day basis for the individual buildings. Many of Super lean's full-time employees have been with the firm for a number of years. Five zone managers are each responsible for furnishing recurring nightly cleaning services to several businesses. in addition, the zone manager sells and schedules noncleaning service jobs for the company's central pool of skilled employees. Informal meetings are held periodically to discuss Super lean's performance, personnel allocations, and scheduling problems. Super lean's budgeting and planning have been done by Meg, who also manages variations from budgets. Meg recently decided to retire and sold the business to Business Maintenance Services, Inc. (BMS), which provides similar services in a number of metropolitan locations that surround Super lean's business area. After news of the sale, several of Super lean's long-term employees appeared resentful of the change in ownership and did not know what to expect. BMS's senior management met with Super lean's managers and announced that Mike Johnson would become president of Super Clean and that Super Clean would continue to operate as a separate subsidiary of BMS. Furthermore, in accordance with BMS's management philosophy, a responsibility-accounting system is to be implemented at Super Clean. Also, in line with other BMS subsidiaries, a participatory budgeting process is being considered. However, no decision will be made until an evaluation of Super lean's existing policies, operational culture, and management is completed. in view of the significant change in management philosophy, BMS has taken considerable time in explaining how each system operates and assuring Super lean's managers that they are expected and encouraged to participate in both the planning and implementation of any of the systems that are to be adopted. Two new initiatives are being considered at Super Clean, Inc.: Responsibility-accounting system Participatory budgeting system for each of these new initiatives: Identify at least two behavioral advantages that could arise. Identify at least two potential problems that could arise. (8 marks) Discuss, separately, the likelihood that the two new initiatives will contribute to the alignment of organizational and personal goals. (2 marks) (Total mark: 10 marks)
