Rondell Data Corporation

American University of Central Asia

Course: Introduction to Management Professor: Robert Anderson

Elnura Sulaimanova Shaqaiq Farzam AjiAbdullah Wubulikasimu Shogunbekov Vokif Nazarkhudoev Muhidin

Rondell Data Corporation Bishkek 2009

Rondell Data Corporation

Rondell Data Corporation

Rondell Data Corporation is a company with a significantly big size and it has been very innovative and known for high quality of its products from the time it was established till 1978. After this year some changes occurred within the company in the areas of production and human resources management. As we have identified this is the period when the main problems have appeared in the company. Due to these issues the companys reputation in the market was partially damaged. The two major problems which should be taken into account while analyzing the case are controlling and organizing, which were once defined as the functions of management. It was noticed that the top managers lacked authority to be able to control those people working under them. In theory these people were highly legitimate to give orders and exercise their position in terms of regulating lower level management and consequently workers. We can see this from the case connected to Forbus Doc relations, where the paper mentions that Forbus was not satisfied with performance and behavior of Doc, who by having good ties with Hunt, the president of the company, rejects the authority of Forbus over him and does the things which satisfy him best. At the same time, it was derived from the case that while choosing people to certain positions, and top management in particular, the company does not take into account their correspondence to the work requirements. An example should be brought is the state of Forbus being a skillful engineer but not a very good manager. Another issue of vital importance in this corporation is that, there is no clear division of the work in the company. Workers including the managers themselves are not fully informed about their tasks. As a result, while having very innovative staff, the company fails to meet the deadlines set in the beginning. Moreover, Hunt, who is the president of the company, believes that quiet friendly relationships among workers has to considered as a characteristic the company can be proud of

Rondell Data Corporation and serves as a key element of its success. However, due to such factor as an enlargement of the corporation where the number of people working in it increased from 100 to 800, communication among workers and staff became comparatively difficult and the state of the company having the basis for friendly relationships among workers, which was defined as a necessary condition for motivating people to work was challenged. For these reasons, newcomers who are not sufficiently familiar with the environment of the company and people working there face a difficulty while trying to overcome the process of getting adopted to the new environment. Therefore, there is a necessity to invent such a system where it will be easier for people to adjust to their new work place. There is a need to find solutions to the problems faced by the corporation in order to bring a higher level of efficiency and effectiveness to the companys work and avoid its failure. For these reasons, several suggestions from the perspective of management students were made to reduce the problems and prevent it from possible risks and threats. Therefore, as we have identified most of the problems are getting their roots from the top. That is why it is necessary to redefine the functions of the top management. One of the engineering department employees said that the department is usually waiting for commands from the top and sales manager was also claiming that all the decisions are made on top whether they are right or wrong. Thus, decentralization of the company can be viewed as one of the possible solutions to the existing issues which would allow each department to come up with more innovative ideas making decisions more accurate. The engineering department, for

instance, should be self-sustainable and the company should leave some space for independent decision-making. Sales department while having more experience and skills for satisfying the customers can make its own decisions in this area as well. This department because of having direct contacts with the costumers can better define the needs of the customers and hence, can easily make decisions which would both benefit the company with innovative ideas as a response to the customers currents expectations, needs and demands.

Rondell Data Corporation Moreover, in order to achieve the common goal of the company, various sections and departments operating within it should be highly integrated with one another. Due to the interdependency factor, failure of one department to accomplish a given task in proper way, for instance, results in the failure of the company as a whole. Hence, when the engineering department fails to finish the design of a product on time, the production department also faces a delay in its production, and if the product is not ready for sale the sales department fails to meet the customers needs and satisfy their demands as well. Additionally, some aspects of the problematic nature of corporations work can be associated with the engineering and research departments. Therefore, a considerable attention should be paid to these departments because only by improving all the parts and sections of the organization it can the peak of success. In order to do this the company has to put some diligence to find managers of high competence. For instance, Frank Forbus who is the current manager should be replaced by another expert who without any doubt will have to meet the managerial requirements. Firstly, Forbus is not so much interested and satisfied with his job; as a code of manager in order to be successful a person should be highly interested in his work. Secondly, his profession is an engineer not a manager; and thirdly as it was mentioned earlier he lacks an ability to practice his authority over his employees. Some other reasons behind the inefficiency of his performance is the fact that he does not know the particular features of his position in the company and those expectations he was supposed to have in terms of his employees. Department managers sometimes believe that their functional areas of control operate apart from rather than a part of' the larger organization. When one or more department managers fail to appreciate the impact that their actions have on other departments, the results can be chaotic. In a best-case scenario, resources of the company are wasted in an effort to develop and deliver a product or service that meets customer's expectations. In other scenarios, departments are actually operating at cross-purposes, almost guaranteeing the organization's customers will be disappointed with the outcome.

Rondell Data Corporation In addition, with the same aim to solve the issues connected with managerial and organizational system, we decided to bring changes to the existing organizational chart as follows:

President Bill Hunt

Executive vice President Ralph Symone

Controller Len Symmes

Production department Dave Schwab

Fabricating Assembly Tool making Maintenance Traffic Scheduling and planning

Sales department Ron Porter

Research department Doc Reeves

Data equipment Electronic design Mechanical design

Engineering department Fred Rodgers

Production engen. Quality control Engineering Admin. Drafting Technician Pool Document Section Technical Writing Library

Test equipment sales Broad cast equipment Marking Data equipment sales Advertising

Special Components Electronic design Special devices Electro- chemical research

Nowadays it has been proven that the participatory leadership is one of the most effective types of leadership; therefore in order to achieve our goal of decentralizing the company to some extent an introduction of this kind of leadership at Rondell company is recommended and the possible changes could be brought are shown in the chart.

Rondell Data Corporation

Even though the company has a good reputation and valuable resources, because of managerial and organizational issues, there appears a threat of becoming not competitive and inefficient. To avoid this, a significant number of changes should be brought by the company both in the structure of the company and the way of implementation of policies. There is a significantly large space for the company to improve and the recommendations brought in the paper are designed to help the company to reorganize itself in such a way that the issues addressed earlier will be solved and the desired goals will be accomplished in a best way.