Rondell Data Corporation

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Organizational Theory and Design
Case Study Analysis

Rondell Data Corporation Case Analysis

Abstract:

The analysis of Rondell Data Corporation situation and discrepancies that were experienced throughout the company life cycle will help understanding the theory and design of organizations . By exploring the background of the problem, organization's functioning, the impact of organizational culture on the strategy and success of the company and problem identification, recommendations can be offered. Proposed solutions to the current discrepancies at Rondell Data Corporation will provide an increased understanding of the role of organizational structure related to the improvement and overall performance of a company.

Rondell Data Corporation History:
Bob Rondell who was the owner established the Rondell Data Corporation in 1920. The basis for its inception was the invention of several electrical testing devices. In 1947, the company entered into the radio broadcasting equipment market. By the early 1960’s, the company had increased its business to include data transmission equipment. The company had a reputation of being a source of high quality innovative designs and described itself as being able to “convert problems to solutions” in their sales brochures. By 1978, two major lines were recognized: broadcast equipment and data transmission. Broadcast equipment accounted for 35% of the company sales. Data transmission was also blossoming with increased demand for highly specialized and innovative designs. In 1920 the organization size was not known as it is a new in the market. However, by 1947, Rondell Corporation had reached 100 employees. By 1978, the time of the current dilemma, the employee count had reached to 800. The organizational structure of the Rondell Corporation is fairly flat with few layers for communication to flow.There was a lack of an integrated information structure within the company. An integrated information structure would have facilitated cross communication necessary to achieve the common goal.

Key Personnel
Bill Hunt, the current President. Bill Hunt has been with the firm since 1946. He was a student of Bob Rondell’s, and joined the company as an engineer. He became the assistant to the president in 1956 and president in 1960. Bill Hunt, along with Ralph Simon, Executive Vice President, holds enough stock to command effective control of the company. Dave Schwab, Production Manager, joined the company in 1955. Upon joining the company, he was instrumental in exposing widespread irregularities in the production and control departments. Following this, Dave was promoted to production manager, and brought in a new group of production specialists to the company. His exact education level is unknown, other than the fact that he does not have a degree. Ed “doc” Reeves is employed as Director of Research. He joined Rondell in 1960 and worked directly with Bill Hunt in developing major innovations in the data transmission equipment. He became director of research in 1967 and is widely respected in the Company. In fact, he is referred to as a creative genius. In the past, he had been offered the Director of Engineering position, but turned it down.

Ron Porter, Vice President of Sales, has been with the company since 1957. Ron has a B.S. in engineering and has always worked in sales. He was made sales manager in 1967 and appointed Vice President of sales in 1974.

Frank Forbus is the most recent hire. He joined the company in 1977 as Director of Engineering, replacing an employee who had been dismissed. Frank’s educational background includes a Master’s degree in engineering. His duties include administrative responsibility for research, as well as complete responsibility for engineering services. Prior to coming to Rondell, Frank Forbus worked as the division director of engineering in a large industrial firm.

Current Situation
Currently, the year is 1978 at the Rondell...
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