Rondell Data Corporation

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RONDELL DATA CORPORATION

John A. Seeger

Presented By:-
Amit Khandelwal
Anuja Misra
Prerna Bhadani
Ravi 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
B ill H u n t
P r e s id e n t

R a lp h S im o n F ra n k F o rb u s R o n P o rte r
E x e c u t iv e V P D ir . E n g in e e r in g V P S a le s

L en S ym m es D ave S ch w ab
C o n tr o lle r F a c to r y S u p . D oc R eeves F ra n k F o rb u s
D ir . o f R e s e a r c h E n g in e e r in g S e r v ic e s

P e rs o n n e l
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
The Engineering Department :
Research
• 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
• 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

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