The Rondell Data Corporation was founded in 1939. The company’s original plan was to manufacture several electrical testing devices that Bob Rondell invented while he was an engineering faculty member of a university. By 1947, the company started to make radio broadcasting equipment. During the late 1960’s, the company had increased its business to include data transmission equipment. The company was known for their high-quality innovative designs and described itself as being able to “convert problems to solutions” in their sales brochures.
The organizational structure of the Rondell Data Corporation is mechanistic and did not allow for effective communication. There were many departments and layers of management, yet there was no clear integration of communication within the company. An organic structure would have facilitated widespread communication necessary for all employees to achieve complete communication necessary for efficiency (Daft, 31).
The key issue in this case is the tension between the historically informal departments of ESD and Production. There has been a relatively high amount of turnover in the ESD department. The production department is rather isolated and there are tensions over a lack of respect among the departments regarding quality control. Forbus’ ESD department is scattered and he has difficult time distinguishing himself as the leader; there is low morale among his employees.
The company should revisit their organizational design. They also need to find a way to facilitate effective communication among departments. The company is currently managing in a centralized structure, reducing the effectiveness of the company across all departments. The company needs to make a shift from vertical decision making to a more organic approach. The Executive Committee should focus on the company’s direction and work to provide