RONDELL DATA CORPORATION John A. Seeger

Presented By:-Amit KhandelwalAnuja MisraPrerna BhadaniRavi Yadav

Company History

• Founder-Bob Rondell (1920) as “Rondell Equipment Company”

• They manufacture several electrical testing devices,-Radio broadcasting equipment(1947) and transmission equipment (1960)

• It has long-standing reputation as a source of high quality, innovative design

• In 1978,offered a wide range of and were dealing in two major lines.(UHFTV and FM)

• Company grown from 100 employees to 800

• Rondell’s employee formed backbone of the firm operations

• The personnel management approach extended is used

• All employees were paid on a straight salary plus a share of profits

• They have an extremely loyal group of senior employees and low turnover

• The firms was experiencing number of disputes between research,engineering,sales, and production

• Centre of problem was new production introduction

• These disputes decline company’s profitability

Organizational Chart, 1978

L en S ym m esC on tro lle r

D ave S ch w abF ac to ry S u p .

P erson n e l

R a lp h S im onE xecu tive V P

D oc R eevesD ir. o f R esearch

F ran k F orb u sE n g in eerin g S ervices

F ran k F orb u sD ir. E n g in eerin g

R on P orte rV P S a les

B ill H u n tP res id en t

Organizational Culture

• Age/Experience valued• Creativity/Genius revered• Seniority important• Preserving “family spirit” of the old

organization• Personal management/Informal

approach/Personal contact communication style

Observable Behavior

• Conflict and little cooperation

• Blame placed on other departments

• Little formal organization

The Sales Department

• Ron porter was angry ,as they have failed to deliver on schedule

• As the model 802 is typical, they padded the delivery 6 weeks

• This is ruining the reputation in market• This is because communication gap

between engineering, production, sales department

• Frank Forbus was in charge of both research & engineering services

• The future of the organization depend on this department

• Department was facing problem of-– Solving development problem– Bringing innovative ideas

• Department is looking forward for the special contract so that they can subsidize the basic development work which goes in all there basic product

The Engineering Department : Research

• Relationship between the people are based on mutual understanding and not on policies and procedures

• There was enough problem in the production but Frank trusted his people

• Members of the department was proud of their personal contract

• Engineers were delighted with department’s encouragement

• John Oates had a negative views about the position of Frank– As he has started from the ambiguous

position so he thinks that he cant succeed in his preproduction plans

• Paul Hodgetts valued bench work but he has a negative impression of engineering services

The Engineering Department: Engineering Services

• This department provided ancillary services to R&D and served as liaison between engineering and other Rondell departments

• Main Function:– Drafting– Management of the central technicians pool– Scheduling and expediting engineering products– Documenting and publication – Preproduction – Quality control

• Top management description of the department included the line:– ESD is responsible for maintaining

cooperation with other departments– Providing services to the development

engineers– Freeing more valuable people in R&D

• Salespeople discuss their problem with designers & who directly blame R&D

• Frank’s technician supervisor trusted the ability of his people and Frank, and he has enough support from them

• Fred Rodger an assistant was facing problem as the people was not ready to take their responsibilities

• Don Taylor trusted his people and assign the job accordingly

The Production Department

• Dave Schwab is very experienced and had been very successful in Rondell company

• His first move was to replace all fallen managers and bring new team from outside

• This new group did not follow old tradition of company

• They have done reorganization, now production department had controlled purchasing, stock control and final quality control

• Because of wartime events, management decided to remove these three departments from production

• In production department-500 employees, 60% -assembly line 30%-skilled machinists 60%- scheduling, supervisory and maintenance

duties• Production workers were nonunion,hourely-

paid and participated in both the liberal profit-sharing program and stock purchase plan.

• Moral in production was traditionally high, and turnover was extremely low

Dave Schwab comments

• All department has to be self contained department

• Department have to control what comes into the department and what goes out

• He always go down the line

The Executive Commitee

• The executive committee was a brainchild of Rondell’s controller, Len Symmes, who was well aware of the deputes that plagued in the company

• Bill Hunt and Ralph Simon to meet every two weeks with departmental heads

• The idea of doing things collectively and informally just doesn’t work as well

• They had to start thinking in terms of formal organization

• Mr. Hunt had lots of hopes that this committee especially would help get the department manager into a constructive planning process

• It hasn’t worked out that way• They uses the meetings as a place to

pass routine information

Recommendation

• Teambuilding should be a priority

• The constant finger pointing needs to be stopped by organizational wide efforts at breaking down functional barriers

• Creating an environment of team participation and decision making

THANK YOU