Case Study on Rondell Data Corporation Essay Example

decline in profitability. Rondell Equipment Co., established in 1920, upheld traditional values of offering high-quality and groundbreaking designs leading to an elitist mentality. The employees at Rondell took pride in their work and boasted of their exceptional performance due to the strong family spirit within the organization's roots.

The organization found it difficult to adapt to rapid growth and change due to its traditional elitist model. Reimann & Wiener (1988) state that when the organization's environment changes, the effectiveness of its corporate culture is truly tested. A strong culture can hinder a firm's ability to respond to such changes. In order to accommodate second generation employees and growth, the company required a more formalized structure. The once strong "family" culture had become dysfunctional, resulting in divergent subcultures. Cook, Hunsaker & Coffey (1997) recommend design changes.

87. The common functional structure employed by Rondell is ideal for companies with limited and similar products, but requires strong management control and coordination. It entails all functions functioning together towards a shared goal of creating, constructing, and distributing the product. Also, this arrangement proves most beneficial when departmental responsibilities are fairly autonomous from one another. Fundamentally, this design is well-matched to promote specialization.

To tackle another problem that must be resolved, it is apparent that the performance system in place allowed individuals to perceive their own performance as distinct from the overall enterprise. The following steps are recommended: • Rondell should prioritize Team building, Team participation, and decision making. • A cross-functional approach should be employed to carry out critical company responsibilities, such as developing new products. Seek the assistance of a proficient consulting team to support the management

team. • To establish the most appropriate organizational structure for the corporation, an organizational design process should be launched.

Engineering services ought to incorporate project management as a means to assist the team with coordinating, planning, and monitoring the project process, according to reference 1, which includes Curtis W. Cook, Philip L. Hunsaker & Robert E.

Coffey (1997), in the 2nd edition of Management and Organizational Behavior, page 87, cited Reimann, B. C. and Wiener, Y.

(1988). The article titled "Corporate Culture: Avoiding the Elitist Trap" can be found in Business Horizons, volume 31, pages 36-44.