American Dream Holdings, Ltd. (ADHL), is the 100 percent owner of eighty-eight subsidiary corporations, some of which operate in virtually every state of the United States and many of which operate in a limited number of states. One of the subsidiary corporations, EFC Corp., is the general partner of two thousand limited partnerships with operations scattered around the world. EFC Corp. is the flagship and largest of ADHL’s subsidiary companies. ADHL also has 20 to 50 percent ownership interests in other business operations. ADHL is owned by two individuals: one, Mr. Major, with 80 percent, and the other, Mr. Minor, with 20 percent. The individual owners operate additional businesses not under the ADHL umbrella. Such additional businesses are considered affiliates. ADHL provides legal, financial, and administrative services including payroll and human resource management to all of its subsidiaries as well as to many affiliates. ADHL collects a monthly fee for such services. The fee is based on estimated needs for the services and is due regardless of the number of hours actually spent on a particular company's matters. ADHL does not assess or collect supplemental fees for work done in excess of the estimate. The group of eighty-eight subsidiaries and ADHL employ two thousand individual employees. All employees participate in the year-end bonus plan that is based upon group net profit attainment. The organizational structure including department organization is dictated by ADHL executives. The chief operating officer of ADHL, Ms. Iwon, was initially selected and hired by the 80 percent owner approximately two months after Ms. Iwon was hired. Approximately one year after Mr. Toolate was hired, Ms. Iwon orchestrated a reorganization that included her being promoted to the parent holding company position. EFC Corp. is perpetually three months behind in paying fees to ADHL. EFC Corp. is recalcitrant in distributing financial reports to ADHL.
1. Using a systems approach, identify the system or systems and their subsystems as well as the various relationships and interdependencies you see. You may utilize a drawing such as a sociogram if you like.
2. Using a systems approach, identify the various conflicts in the case including describing how each is a conflict. Be sure to note how each conflict you identify meets the definition of a conflict.
3. Continue your diagnosis and assessment by analyzing the function served by or the effect of each conflict in the case; assessing whether the system structure is competitive, avoidant, or collaborative; and determining your strategy and/or strategies.