UPO-I

Case Prep Assignment

Rondell Data Corporation
Sneha Ashok Kapadia
Ref no: 16340
Section E
Rondell Data Corporation was facing a crisis as its product; the
Model 802 had hit delays and problems in the transition from design
to production, just as many other new products at Rondell had. This
was the consequence of the increasing disputes between the
various departments at Rondell.
A number of the disputes could be attributed to the operating
culture and structure at Rondell. Rondell had grown to become a
large firm, however it maintained a strong spirit of family with
informal relationships among the employees guiding most of the
operations. The style of operation, built on mutual respect instead of
policies and procedures, created a work environment that was
favored by the employees. However this informal style of operating
also caused a lot of friction not only between departments but also
between newcomers and existing employees.
The lack of formal procedure led to friction between departments.
As there were no procedures or policies in place, there was very
little coordination between departments. Furthermore, as a lot of
work was done on the basis of personal relationships, often
problems were taken straight to the heads of departments instead
of going through proper channels. Additionally, the roles and
relationships between departments werent clearly defined. This
often led to further animosity between departments as some
departments often felt that they were being made to do the work of
other departments or that the other departments werent delivering.
The informal work environment built on personal relationships also
led to friction between individuals. The existing employees, used to
a free reign, resented newer management such as Forbus as they
felt they were being policed and stifled. Additionally, incumbents
like the Director of Research, Doc Reeves, were focused solely on
the work of their own departments and would not take any
responsibility for coordination between departments. Reeves, lauded
as a creative genius, would run R&D as he pleased and would often
go over Forbus head although he technically reported to Forbus.
The division among the top management in the departments led to
a severe lack of communication and cooperation between
departments. The constant back and forth and power struggles
between departments led to numerous delays in the production

schedule. Consequently, Rondell was losing its reputation in the

market. The constant setbacks and friction eventually led to Frank
Forbus being sacked.
In order to remedy the situation, Rondell needs to put into place and
enforce policies and procedures, particularly those governing the
roles and responsibilities of the various departments. These should
be enforced in a manner that would maintain a smooth process from
design to production to sale. Furthermore, the top management in
each of the departments should be required to perform their
managerial functions in order to maintain hierarchy and
coordination between departments. This could be done through
collective responsibility and joint decision-making, which would
ensure mutual interest in the successful delivery of each project.