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Q1. Discuss the structural challenges at Rondell Data Corporation.

Briefly describe possible remedies.

Rondell Data Corporation, which offers a wide range of high quality and
innovative products followed a functional structure type, but had lot of structural
Coordination Missing: There is minimal interactions and mutual adjustments
between design, engineering, manufacturing, sales. Sales department was
contacting other departments directly instead of keeping ESD in the loop. The
deadlines given by the sales were not discussed prior with the other teams. Head
of ESD was not in constant touch with the manufacturing head.
No Formal Structure: Company doesnt have a formal structure, and day-today operations depends on personal contacts. The absence of bureaucratic red
tape helped in recruiting talent, but was causing inefficiency. QC department that
should be under manufacturing, was under ESD, leading to lot more
administrative work for QC.
Decentralization of Power: Mr. Bill was not leading the way President should.
He wasnt involved in all the departments. The problems werent discussed in the
executive meetings. Mr. Doc was not answerable to anyone.
Less Specialization: Mechanical people of design team carried the project right
through the final stages, and thus underutilizing ESD. Moreover, it wasted
important time of Design team, that could be utilized in other tasks. Existence of
preproduction department was minimal, and thus created unnecessary pressure
on manufacturing team.
Possible Remedies:

A firm developing new products requires reciprocal interdependence.

Activities that are reciprocally interdependent should coordinate very
closely. Company should follow a mechanistic approach.
Improve Horizontal Coordination: People working on a specific project
(like 802)- designers, engineers, manufacturers, sales representativeshould work together and communicate enough with each other. HR
department can be created that will help all personnel understand their
roles and can help solve the grievances, smoothening out the process.
Formalization: Roles and duties of each personnel should be well
documented and norms and guidelines laid down. Design team person
should sit in on sales meetings to coordinate new product development
with what sales people think customers are wanting. Clear role of
Preproduction team should be laid down, and if understaffed should be
adequately staffed.
Create a Liaison Role: A liaison person can communicate and coordinate
with other departments. Such a role overlooking ESD and manufacturing
would help the firm as ESD will have a clear idea of what can be
manufactured with the current setup. With proper coordination between
Mr. Dave and director of ESD could increase the output of the
manufacturing process.
Centralization of Power: Firms president Mr. Bill hunt should play a role
of an integrator. He should coordinate with the various departments and
not just get involved with the Design department. It can be daily meeting
with the task force, or the heads of each department to discuss the

roadblocks and way forward. Mr. Doc should report directly to Mr. Bill, thus
separating ESD from Research.
Create a temporary taskforce for a new product: It should consist of
members that represents the interest of each division and should carry the
information back to that division.