Rondell Data Corporation

1. 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)

2. Presentation Format Introduction/Background Impact of the Structure of Engineering Dept. Impact of Organizational Culture on Strategy/Success Problem Identification/Recommendations 2

3. 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 3

4. 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 4

5. Organizational Chart, 1978 5

6. 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 6

7. 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 7

8. Observable Behavior • Conflict and little cooperation • Blame placed on other departments • Little formal organization 8

9. Different Values • Production Department values timely schedules • Engineering Department values designs, planning, and innovation • Sales Department values timely service to the customer 9

10. Required Changes of Strategic Design Blocked by Culture • Strategies focused by culture • Subcultures functioning as countercultures • Hiring of second generation employees into key positions 10

11. “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) 11

12. 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 “802”product 12

13. 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) 13

14. 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. 14

15. 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. 15

16. Recommendation • Engineering Services should add a project management function to aid the team in coordination, planning and monitoring project progress. 16

17. 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. 17