Ultra-Sonic Engineering Corporation’s Organisational Design

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Table of Contents

The Main Issue in the Case
Five the Most Important Sub-issues Evident in the Case
Five Relevant Theories
Preferred Solution to the Case and the Implementation Plan

The Main Issue in the Case

I think that the main problem here is the fact that Dan Rogers has lost interest in the organization’s operational questions. His decision to create three separate equal divisions (A, B, and C) was clever, and it was needed. The first division was aimed to control the engineering, manufacturing, and quality assurance of Jet Fighters, the second one was created to produce the Gyro-Copters, and the third one manufactured the Silver Motor needed in the production of the Gyro-Copters and used by Division B. However, it was Rogers’s work to control the work of those divisions. Instead of doing this, he decided to create one more division, the Central Services Division, which was aimed to provide the link between the three remaining ones.

When the Central Services Division was formed, Dan Rogers gave too much power to it. He did not check and control the work of the head of Central Services, Roy Lomas, and Lomas managed to take advantage of this. The fact that Rogers was not interested in and did not control the work of Lomas can be proved by many facts. Firstly, Rogers did nothing when Roy Lomas hired Edward Hyde and gave him too much power, although it was obvious that the position was given to him because he was Roy’s old friend.

Edward Hyde chaired many meetings and even became the unofficial head of the Financial Control Division, even though this position was officially occupied by another man, Jack Monday. Rogers did nothing when people in the organization began to complain about the ambitions of Roy Lomas and Edward Hyde and the decisions they made. And what is even more important, when Lomas advised Dan Rogers to close the division led by Richard Robards, he did not check the numbers that allegedly proved the inefficiency of that division.

Five the Most Important Sub-issues Evident in the Case

The fact that Dan Rogers lost interest in the organization’s operational questions and gave too much power to heads of divisions, especially to Roy Lomas, the head of the most powerful one, led to the emergence of additional problems.

Firstly, Roy Lomas took advantage of his power to satisfy his ambitions. The main proof of that is his and Edward Hyde’s desire to close Robards’ division, although its work was quite satisfying, and management problems (even if those were present) could have been sold in other, less radical ways. So, the first relevant sub-issue is an abuse of power.

The second sub-issue is that Hyde unofficially held the position of another man. He was the unofficial head of the Financial Control Division, even though it was officially occupied by Jack Monday. Jack Monday was unambitious and was not actually aware of all the pace of change in the corporation. So, Edward Hyde and Roy Lomas actually took advantage of the weak sides of that man.

The third sub-issue is personal bias. It can be proved by at least two facts. The first one is that Roy Lomas hired his friend, Edward Hyde, just because he wanted to have him on his side (Hyde had already worked in the corporation as the manager of the Accounting Department of Division B). The second proof of personal bias is the conflict between Edward Hyde and Chris Raven, the head of the accounting department of Division C. Edward Hyde allowed himself to call Raven the young pup from Princeton and question his financial wisdom and expertise, which was unprofessional and biased since Raven was a professional in financial issues.

The fourth sub-issue is the fact how Edward Hyde and Roy Lomas treated employees and how much they demanded from them. A lot of people in the organization complained that they became the victims of the ruthless ambitions of these two executives.

The last sub-issue is the potential capture of power. Even though Dan Rogers remained the most influential figure in the company, his decisions were highly dependent on what Edward Hyde and Roy Lomas said or advised. As a prime example, he listened to their advice to close Robards’ division and did not even check the numbers that allegedly proved the inefficiency of it. Even if Rogers had not gotten into an accident, Hyde and Lomas would have become more powerful with the passage of time.

Five Relevant Theories

Mintzberg’s 10 Managerial Roles applied to Dan Rogers

Interpersonal Roles: Figurehead (+), Leader (+), Liaison (-).

Informational Roles: Monitor (+), Disseminator (-), Spokesperson (+).

Decisional Roles: Entrepreneur (+), Disturbance Handler (-), Resource Allocator (+), Negotiator (-).

The result of the application of this theory shows that Dan Rogers was not so good disseminator. He also failed to network effectively to benefit his organizations. He did not help to handle disputes and negotiate with his own employees, which finally led to the controversial situation with Robards’ division.

Tannenbaum and Schmidt’s Leadership Continuum applied to Roy Lomas

Tannenbaum and Schmidt’s Leadership Continuum shows that Roy Lomas as an executive or a leader is much closer to the autocratic style. First of all, he is driven by his own ambitions. He also does not take into account the opinions of his employees, aside from Edward Hyde, who is driven by the same goals. As the result, the organization is affected.

Blake’s and McCance’s Leadership Grid applied to Roy Lomas

As it has already been mentioned, many people complained about the ruthless ambitions of Roy Lomas. He was willing to do whatever it took to satisfy those ambitions, regardless of what other employees of the corporation thought. He even wanted to close the whole division of the company, even though some cost-allocation figures were cleverly buried in the report that he gave to Dan Rogers. So, he gets the lowest point for Concern for People on the grid. However, Roy cared about results, and some people within the organization claimed that he met Rogers’s demands well and in minimal time. So, he gets the high point on another axis, and that leaves us with an authority-compliance management style.

The POLC Model of Management applied to Dan Rogers

The POLC model of management presents the management process as the balanced interaction of four factors: planning, organizing, leading, and controlling. Rogers was quite good in planning, decision making, and setting the organization’s goals. However, he gave too much power to executives, particularly to Roy Lomas, and that resulted in numerous problems within the organization. So, he failed in leading since he was not actually leading people – he wanted others to control everything.

Hersey & Blanchard’s Situational Model of Leadership applied to Dan Rogers

As has already been mentioned above, Rogers created a separate division to control the three manufacturing ones. He gave too much power to the head of this division, as well as to the heads of other divisions, which is why he was many times criticized for losing interest in the organization’s operational questions. So, Rogers, in fact, chose a delegating style of leadership, letting others make important decisions. However, it turned out that some of the executives were not ready for such freedom and started to take advantage of it. Therefore, it can not be said that Rogers was a good situational leader.

Preferred Solution to the Case and the Implementation Plan

It is hard to propose a solution in this case since an individual who was the most influential in the company and should have taken some actions to stabilize the situation and distribute forces is dead. However, Lomas moved to install himself as the new President of the corporation, and something should definitely be done about that. Otherwise, he will become even more powerful and will continue to use his power to satisfy his own ambitions.

I think that Richard Robards and Chris Raven should be those who take the lead. The very next day they should gather the meeting and reveal all drawbacks that the report that Lomas handed to Rogers has. After that, they should insist on the vote, which will decide whether Lomas will become the new president of the company or not. Probably, he will not become the president after all. I think that Lomas should stay in the company as the head of his division and be provided with fewer powers.

Actually, the division itself should be provided with fewer powers. Perhaps it will be better for the company if it is equal to three remaining ones. Then, in a week or several of them, another vote for a new president should be held. Until the president is chosen, someone has to perform his duties temporarily. This person has to be elected as soon as possible.

As for Edward Hyde, I would recommend returning him to the position where he belongs, the one he had occupied in the Accounting Department of Division B before Roy Lomas hired him. It would be better for the corporation since that will break the tandem between Roy Lomas and Edward Hyde, who is too ambitious and too similar to each other that it affects the organization negatively. Employees complain about acts and decisions of these two executives, and the whole division, which the corporation actually needs to produce its products (the Silver Motor is used in the production of the Gyro-Copters) could have been closed because of them. So, Edward Hyde should be given a choice to either resign or return to his previous position.

Division C should continue working, and Lomas and Hyde should apologize to Richard Robards and Chris Raven for mistakes in the report and the personal bias. Still, someone has to be chosen to check the management procedures in Division C. If any problems are present they should be eliminated.

So, the implementation plan with the timeline for it is the following:

The next day after an accident:
- A meeting with executives where Robards and Raven reveal all drawbacks that the report that Lomas handed to Rogers has.
- The vote that will decide whether Lomas will become the new president of the company or not.
- The vote for a person who will perform the duties of a president temporarily.
The following week:
- Arrival at a decision regarding Roy Lomas and his division.
- A proposition to Edward Hyde: to either resign or return to the previous position.
- Apologies to Richard Robards and Chris Raven for mistakes in the report and the personal bias.
- The vote for a new president of the corporation.
During the following month:
- The investigation in Division C as for its management procedures.
- A series of interventions aimed to eliminate management problems if those are present.

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