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Rondell 03

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Rondell Data Corporation

“Organization is the architecture on which


enterprises are built, but organizations must be
willing to change frequently in order to grow and
remain viable” (Cook, Hunsaker, & Coffey)

November 3, 1999
Presentation Format
Introduction/Background
Impact of the Structure of Engineering Dept.
Impact of Organizational Culture on Strategy/Success
Problem Identification/Recommendations

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November 3, 1999
Company Background
 Established in 1920-Bob Rondell
 Started out as Rondell Equipment Co.
 Mfg.of electrical testing devices
 Radio Broadcasting Equipment-1947
 Data Transmission Equipment-Early 1960’s
 Long standing reputation as source of high
quality/innovative designs
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Company Background
 Company sales brochure:”Convert Problems to Solutions”
 Two major lines-1978
 Broadcast Equipment (35% of company sales)

 Data Transmission

 Size:
 1947-100 employees

 1978-800 employees
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Organizational Chart, 1978
B ill H unt
P resid ent

R alph S im on Frank Forbus R on P orter


E xecutive V P D ir. E ngineering V P S ales

Len S ym m es D ave S chwab


C ontroller Factory S up. D oc R eeves Frank Forbus
D ir. of R esearch E ngineering S ervices

P ersonnel 5
Organizational Culture
 Age/Experience valued
 Creativity/Genius revered
 Seniority important (good ‘ole boys network)
 Preserving “family spirit” of the old organization
 ”Personal management/Informal approach”/Personal
contact communication style

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Culture at Rondell
 Length of employment highly valued
 Informal relationships key to functioning
 Each department has its own function or niche
 Each department’s turf should not be invaded
 Each department responsible for its own members
 Little regard for the overall impact on the organization
Tradition built on cooperation
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Observable Behavior
 Conflict and little cooperation
 Blame placed on other departments
 Little formal organization

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Different Values
 Production Department values timely schedules
 Engineering Department values designs, planning, and
innovation
 Sales Department values timely service to the
customer

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Required Changes of Strategic Design
Blocked by Culture
 Strategies focused by culture
 Subcultures functioning as countercultures
 Hiring of second generation employees into key
positions

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“The real test of the effectiveness of a corporate
culture comes when the organization’s
environment changes …Sometimes a strong
culture can be like a millstone around the neck of
a firm that is trying to respond to environmental
chnages” (Reimann & Wiener)

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November 3, 1999
Background Factors/Current Issues
 Gradual increase in disputes between research,
engineering, sales &production people over last 2
years(assumed this has occurred since retirement of
previous Dir.of Engineering,a 30 yr employee)
 Disputes centered on the problem of new product
introduction
 Director of Engineering position “revolving door”

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New communication strategy attempted on “802”product
Background Factors/Current Issues
 New filtering technique added to existing design at last
minute
 Product “802”returned from production 4 times due to
design flaws
 Production assigned to other jobs
 Delay in product delivery to customer-“here we go
again”(VP-Sales)
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Recommendation
 Retain the services of a qualified consulting team to
help the management team.
 An Organizational Design process be initiated to
determine the best organizational structure for the
company.
 Our assumption is the new design will be product line
focused.
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Recommendation
 A cross-functional approach be taken to accomplish
key company task such as new product development.
 Decisions be pushed down into cross-functional teams
who have the responsibility for delivering a timely,
quality and manufacturable product.

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Recommendation
 Engineering Services should add a project
management function to aid the team in coordination,
planning and monitoring project progress.

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Recommendation
 Teambuilding should be a priority at Roundel. The
constant finger pointing needs to be stopped by
organizational wide efforts at breaking down functional
barriers and creating an environment of team
participation and decision making.

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