Rondell Data Corporation Consultants: Adam Edmonds Stephan Hombaker Ashlee Saxton Adam Weil

Company Overview Rondell Data Corporation ◦ Founded in 1920 ◦ Over 800 employees Major Product Lines ◦ Broadcast Equipment  UHFTV and FM Radio ◦ Data Transmission

Current Organizational Chart

Cycle of Problems Research generates new idea Engineering drafts idea Pressures put on by President and Sales Department Production receives drafts from Engineering Production sends revisions back to Engineering Engineering works on revisions

Issues Lack of Goal Focus Top management lacks decisive goals Strategies are not fed to lower management Lack of Effective Formal Relationships Bureaucratic control systems are missing Lack of effective formal procedures Lack of Communication and Unity between Departments President does not communicate effectively to executive level Different departments are silos and do not openly communicate with each other High Turnover in Director of Engineering Position Four directors in the last four years Employees don’t accept newcomers into the organization

Central Problem Poor Structure Lack of Goal Focus Lack of Effective Formal Relationships High Turnover of Director of Engineering Position Lack of Communication & Unity Between Departments

Alternatives

Retrenchment Eliminate Production from Company’s Processes Benefits Has value to other organizations ◦ should receive a fair sale price Renewed focus on core competencies ◦ Engineering/Product Design ◦ Fewer deadlines to meet Fewer employees involved in profit sharing and stock purchasing programs Drawbacks Loss of highly skilled workers Loss of control over production quality and processes Lower morale

Restructuring Hybrid Structure: Functional/Horizontal Benefits Gives Engineering personnel the flexibility they desire Improves communication between departments and throughout org. Goals become more visible and practiced Keeps morale high ◦ No firings, just rearranging Drawbacks Requires numerous resources ◦ Time, money, training, etc. Personnel may resist change New conflicts could arise and add to previous problems

Hiring New Director of Engineering Replace Frank Forbus’ Position from within. Benefits Personnel more willing to follow a promoted employee Pool of candidates available immediately ◦ Shorter Search Time ◦ Less Expensive Candidate would have better knowledge of how Rondell works ◦ Less training time Drawbacks Promoted employee may maintain the status quo ◦ Limited changes & new practices Leaves a gap at another level of the company Would still have to deal with the issues previous Directors battled

Recommendation

Recommendation Restructuring to a Hybrid Structure: Functional/Horizontal Identifying,Developing & Diffusing Company Goals Install New Product Development Team and others Identifying Team Leaders for Horizontal Level Implement HR Department

Proposed Organizational Chart

HR Department Rondell has over 800 employees and no department dedicated to their needs Department will have immense impact for the company ◦ Gives employees place to vent concerns ◦ Procedures and rules can be mediated by the department ◦ Performance evaluation May necessitate an outside hire

Teams and Meetings Process Level- weekly meetings ◦ Team Leads New Product Introduction- monthly ◦ Process Level plus Functional Level under Ralph Simon ◦ Improve communication with departments ◦ Chose which products to produce, what changes to make etc. Functional Level- quarterly Full Company- bi-annually ◦ All levels of the company will have opportunity for interaction ◦ Formalization & Interaction

Implementation

Implementation- Major Actions Developing Vision & Mission Increasing Horizontal Linkages Formalizing Roles and Procedures

Necessary Resources Time ◦ Restructuring Process is slow ◦ Issues/Roadblocks to overcome Money ◦ Training Process ◦ New Hire(s) People ◦ Must embrace change ◦ Will need to get outside comfort zone

Implementation Schedule

Thank you for your time.