Rancho Solano Preparatory School (RSPS)
Instructions: Provide an explanation, using appropriate management theories, of how the administration could have handled the closure effectively with its stakeholders in 2014. Include one theory from each of the following: the classical approach, the human relations approach, and the modern management approach.
With the two campuses now closed, you have been asked to suggest three plans: one long-term, one mid-term, and one short-term goal for the future direction of RSPS. Justify your decision for these goals.
Details:
This is a Collaborative Learning Community (CLC) assignment.
Rancho Solano (RSPS), with its new international focus and class ratios of 7:1 continues to be a highly ranked private school in the state of Arizona and was ranked as the third best private school in the state of Arizona with its overall student population of over 1,000 (azcentral.com). However, the July 8, 2014, recommendation by Adam McLaren, the analyst at Moody Analytics, states “Meritas’ rating or outlook could improve if it can organically grow its revenue/earnings through price increases and enrollment growth, and increase size and improve diversification such that debt to EBITDA approaches 5.0 times (including Moody’s standard adjustments) and EBITDA less capex coverage of interest expense is sustained above 1.5 times.” (https://www.moodys.com/research/Moodys-rates-Meritas-2nd-lien-term-loan-Caa2-affirms-B3–PR_302960). Time will tell if the international focus was the right strategic direction for RSPS as well as what lies ahead for the K-12 private school education industry in the state of Arizona.
The board of directors at RSPS has hired you as part of a consulting team to review the situation and present your findings and recommendations. Write a paper (1,250-1,500 words) that discusses the case and submit it to your instructor at the end of Topic 2. Complete this assignment from the perspective of the hired consultants. Respond to the following questions
Solution
Rancho Solano Preparatory School (RSPS)
The administration of Rancho Solano (RSPS) should have used some of the management theories to handle its closure. Some of the theories that were applicable include the Human Resource Management theory, the Classical theory, and the Modern Management theory. Even though the RSPS was highly ranked, it was suffering from managerial, academic, and financial issues that led to its closure in 2014.
The Human Resource management theory focuses more on the individuals in an organization than the operations and regulations. This theory would have been helpful for RSPS because it was crucial for the administration to come up with a communication plan where employees would have been told when and why the business was closing to prepare them mentally for the closure (McNamara, n.d.). The modern management theory would have also been an important approach; use of modern means of communication such as the social media platforms would have been handy in motivating parents to bring their children to this school. The classical management theory is based on rationality and would have ensured that the management uses the standard methods to plan well the closure of the school and give parents a reimbursement for the paid tuition fees (McNamara, n.d.).
RSPS was closed because of mismanagement, financial and academic issues. The short-term plan for the future of this school could be to organize a fundraiser to gather funds for reopening the school and running it; this will help the school administration solve the financial constraints it had faced before (Creno, 2014). Mid-term plan would include employing more teachers who are professionals as this would solve the academic issues and ensure that no mismanagement of the school will happen in the future. The long-term plan involves expanding the school by opening more campuses and enrolling more students.
The
classical, modern management and human resource management theories would have
been helpful in handling the closure of the Rancho Solano Preparatory School.
The school had been doing well but when Meritas took over the management role,
it underwent mismanagement and financial and academic problems. Expansion of
the school by increasing the number of campuses and increasing enrolment might
improve Meritas’ ratings and outlook.
References
Creno, C. (2014). Rancho Solano closing Gilbert, Peoria campuses. azcentral. Retrieved from http://www.azcentral.com/story/news/local/gilbert/2014/05/02/rancho-solano-close-gilbert-peoria-schools/8611833/
McNamara, C. Historical and Contemporary Theories of Management. Managementhelp.org. Retrieved from http://managementhelp.org/management/theories.htm