Rondell Data Corporation

Organization is the architecture on which

enterprises are built, but organizations must be
willing to change frequently in order to grow and
remain viable (Cook, Hunsaker, & Coffey)
November 3, 1999

Presentation Format
Introduction/Background
Impact of the Structure of Engineering Dept.
Impact of Organizational Culture on Strategy/Success
Problem Identification/Recommendations
November 3, 1999

Company Background

Established in 1920-Bob Rondell

Started out as Rondell Equipment Co.
Mfg.of electrical testing devices
Radio Broadcasting Equipment-1947
Data Transmission Equipment-Early 1960s
Long standing reputation as source of high
quality/innovative designs

Company Background

Company sales brochure:Convert Problems to

Solutions
Two major lines-1978
Broadcast Equipment (35% of company sales)
Data Transmission
Size:
1947-100 employees
1978-800 employees

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
E x e c u t iv e V P
L en S ym m es
C o n t r o lle r
P e rs o n n e l

F ra n k F o rb u s
D ir . E n g in e e r in g
D ave S ch w ab
F a c to ry S u p .

D oc R eeves
D ir . o f R e s e a r c h

R o n P o rte r
V P S a le s

F ra n k F o rb u s
E n g in e e r in g S e r v ic e s

Organizational Culture

Age/Experience valued
Creativity/Genius revered
Seniority important (good ole boys network)
Preserving family spirit of the old organization
Personal management/Informal approach/Personal
contact communication style

Culture at Rondell

Length of employment highly valued

Informal relationships key to functioning
Each department has its own function or niche
Each departments turf should not be invaded
Each department responsible for its own members
Little regard for the overall impact on the organization
Tradition built on cooperation

Observable Behavior

Conflict and little cooperation

Blame placed on other departments
Little formal organization

Different Values

Production Department values timely schedules

Engineering Department values designs, planning, and
innovation
Sales Department values timely service to the
customer

Required Changes of Strategic Design

Blocked by Culture

Strategies focused by culture

Subcultures functioning as countercultures
Hiring of second generation employees into key
positions

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The real test of the effectiveness of a corporate

culture comes when the organizations
environment changes Sometimes a strong
culture can be like a millstone around the neck of
a firm that is trying to respond to environmental
chnages (Reimann & Wiener)
November 3, 1999

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Background Factors/Current Issues

Gradual increase in disputes between research,

engineering, sales &production people over last 2
years(assumed this has occurred since retirement of
previous Dir.of Engineering,a 30 yr employee)
Disputes centered on the problem of new product
introduction
Director of Engineering position revolving door
New communication strategy attempted on 802product

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Background Factors/Current Issues

New filtering technique added to existing design at last

minute
Product 802returned from production 4 times due to
design flaws
Production assigned to other jobs
Delay in product delivery to customer-here we go
again(VP-Sales)

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Recommendation

Retain the services of a qualified consulting team to

help the management team.
An Organizational Design process be initiated to
determine the best organizational structure for the
company.
Our assumption is the new design will be product line
focused.

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Recommendation

A cross-functional approach be taken to accomplish

key company task such as new product development.
Decisions be pushed down into cross-functional teams
who have the responsibility for delivering a timely,
quality and manufacturable product.

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Recommendation

Engineering Services should add a project

management function to aid the team in coordination,
planning and monitoring project progress.

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Recommendation

Teambuilding should be a priority at Roundel. The

constant finger pointing needs to be stopped by
organizational wide efforts at breaking down functional
barriers and creating an environment of team
participation and decision making.

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