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Rondell Data Corporation Case Analysis

Essay by   •  September 18, 2011  •  Case Study  •  1,287 Words (6 Pages)  •  7,161 Views

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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 company's 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 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 company's 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



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