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
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 1960s Long standing reputation as source of high quality/innovative designs

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

Organizational Chart, 1978

Bill Hunt President

Ralph Simon Executive VP Len Symmes Controller Dave Schwab Factory Sup.

Frank Forbus Dir. Engineering

Ron Porter VP Sales

Doc Reeves Dir. of Research

Frank Forbus Engineering Services

Personnel

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

Culture at Rondell

Length of employment highly valued Informal relationships key to functioning Each department has its own function or niche Each departments 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

Observable Behavior

Conflict and little cooperation Blame placed on other departments Little formal organization

Different Values

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

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 organizations 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)

November 3, 1999

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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 New communication strategy attempted on 802product

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Background Factors/Current Issues

New filtering technique added to existing design at last minute Product 802returned 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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