1. 1. Unionization Issue Cause: A lack of information and improper prioritizing by the companies with respect to how they would bring union and non-union workers together under one company. Effect: Both unionized workers, comprising no fewer than four unions, and non-unionized workers were thrown together with no warning. Since General Dynamics was also involved with the Titan vehicle through our processing of the Centaur upper stage, this meant that people who worked as separate companies on the same vehicle were now expected to act as one company. Needless to say, union grievances were rampant, and in fact, because of the union taking over, people who worked on vehicle systems for years were no longer allowed to because it fell outside of their new union classification. Even today, union vs. non-union thinking is a big source of conflict among the workforce, although, the workforce has become decidedly more pro-union over the years than they were when we first merged. OB Issues: No Accounting was made in the buyout process for the psychological and sociological wellbeing of the workforce. No management strategy for dealing with the union issue. No study of best practices between the two companies prior to the buyout. Near-Term resolution: Let the workforce in on as much information as the law allows. Adopt a management model that takes advantage of the best practices of both companies prior to the merger and have that management team trained and in place prior to the merger becoming officially sanctioned. Realize that the union is a force to be reckoned with. Seek their input prior to the merger and get concessions from them that will allow for a smooth transition of the workforce to a union shop. This will allow the non-union workers the option to either join the union as they desire or to seek employment elsewhere, perhaps with company assistance (This is at the launch sites that live under closed shop laws) Long-Term resolution: Promoting a unified workforce that is well rewarded for its efforts and therefore, rendering the labor union obsolete.

2. 2. Management Culture/ Organizational Style Cause: Failure to do a thorough examination of the existing organizational culture of both companies prior to the merger and designing a management philosophy that would take advantage of the best practices of both organizations. Effect: One company that has for years now, operated like two separate companies. Titan employees and Atlas employees rarely, if ever, go to joint company functions. The workforce has had very limited opportunities to work across the divide that separates Titan and Atlas, so that in crunch times, when each program needs extra help with their workforce, it creates difficulty and tension when the two workforces are brought together. Where management is similarly structured between Atlas and Titan in terms of an org. chart, management style still varies greatly between the two programs. OB Issues: Unified and effective leadership between both programs. Social opportunities that allow the entire organization to blend are sorely lacking. Near-Term resolution: Create an atmosphere where the company operates as a whole, as opposed to two half's of a whole. Promote job sharing opportunities at all times in order to bring the two workforces together effectively versus throwing them together during crunch time when tensions are already high. Create a management philosophy that is consistent for the entire company, not just along old program lines. Long-Term resolution: Create a workforce that is equally proud and motivated toward meeting all of the company’s goals and not just individual program goals. Us vs. Them talk will be driven from the company’s vocabulary.

3. 3. Distrust of Management Cause: Decisions made in secret. Employees not told of major changes that would effect them until after the fact when they read it in the paper. Lack of thorough corporate planning. Lack of timely and truthful information which demonstrated management’s lack of trust for the workforce. Martin Marietta’s motivations were never known. Effect: A workforce that lost faith in their management. Workers became convinced that Martin Marietta was only interested in owning the General Dynamics built Centaur upper stage rocket and that they were going to liquidate everything else, including the Atlas rocket and the entire General Dynamics workforce. OB Issues: Communication. Near-Term resolution: Let people know the reasoning behind any such merger. Keep people informed. If there is bad news involved, get it out quickly so that people can prepare. Long-Term resolution: Make it the hallmark of your organization that communication is constant and it is completely truthful.

4. 4. Escalating Operational Errors Cause: Lack of management communication. Improper workforce planning Effect: The workforce was preoccupied with worrying about their futures. They lost focus. Tension between union and non-union workers further eroded job focus. OB Issues: Communication. Strategic planning Near-Term resolution: Make it known that everyone’s job is mission success. Appeal to the pride of the entire workforce by demonstrating to them that they are responsible for the past successes of both companies and that they need to keep focused on maintaining that success. Communicate-Communicate-Communicate! Long-Term resolution: Develop a plan that will give assurances to the workforce of their long-term viability- As long as launch success is maintained. If a layoff needs to occur, announce it well in advance and actively help the displaced workers land on their feet. Keep in mind that how you treat your displaced workers will echo through your offices and facilities for years to come.