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Ed Leonard sits behind his desk at Tucker Knox Corporation (TKC) remembering the progress he has made over the last four years. They have been complicated and full of many changes. He joined TKC to help the company develop a new Automation Design Department. In the first two years, he designed, developed and helped to create the department and make sure the new products were competitive and profitable. This last year has been filled with turmoil due to changes in top management. Ed was reassigned to the companys largest manufacturing facility to set up a maintenance department.
Ed was told that after successfully completing the assignment he would be able to return to his department. Six months after being given the assignment, Ed was brought back to the corporate facility only to be given six weeks to find another position within the company or be laid off. Even though Ed had been pursuing his personal goals with TKC he felt that a phone call message from another company was the moment he had been waiting for. This is an opportunity to move away from TKC. He wondered Howard Watson worked closely with Larry, the president, in developing the Automation Engineering Department. He was an aggressive manager with a positive attitude.
Just as Howard was expecting to be promoted to Senior Vice President, trouble arose in the Ireland plant. Since he possessed the most in-depth knowledge of the plant, Jack, a new member of the top management team, decided to assign Howard to go there. Jack Donaldson was the companys first Senior Vice President and has since turned the company around for the worst. For example, he has begun to fill vacant management positions with people from the outside who would be loyal to him. He never did the actual hiring, he had others do it for him, so it would seem that the team was selecting its own members. Larry Henderson, the president and CEO, is a father figure for all those he had personally selected for senior management.
Larry plans to retire in a few years and Jack is his latest candidate to take over his position. Many of the other new executives are from the outside and do not have full knowledge of TKC, therefore, they do not make a lot of their own decisions and do what is told New executives brought into the company from the outside, although they bring in ideas and innovations they do not always know all the internal issues and may not make the best choices. Eds indecision about his future plans is due to the fact that Jack gave away his position to Matt Jackson while he was at the manufacturing facility. I dont think it was in the companys best interest to reappoint two key employees like Howard and Ed.
This shows that there is not loyalty to the employees who have helped to build the company. It is almost if it has been a demotion and not just a transfer for them. The structure seems very well organized and defined. It is obvious that Larry takes great pride in his company; he risked all his personal assets, mortgaged his home, and called upon five close friends for financial help to build the company. Lately the company is in an upheaval due to changes in top management at TKC. The original vice presidents always looked to Larry for his nod of head of approval or disapproval during their board meetings.
Larry stated the current issues and expected his staff to make them work. There was no gray area or any room for miscommunication because it was all This is a very technical business and TKC has been known world wide since 1981 for their keyboard design and manufacturing. All the managers new and old are technically skilled in their own areas. They have either past experience or college degrees that make them an asset Larry has always been the father figure for TKC and personally selected his senior managers. However, as he is nearing his retirement, he is looking for someone to take over his position.
Since Jack has been hired he has been trying to imprint his style on the company by hiring those from the outside who are loyal to him. During their executive board meeting Larry told the managers that their goal is to retain a market share in an aggressive price-competitive market by competing with other manufactures; having efficient factories in the United States and overseas and to retain the corporate head- quarters in the United States. They also want to remain being ranked # 1 in the world for keyboard sales which are over 110 million dollars. They also take pride in their unique product design and this uniqueness is because of their ability to use piece parts. Larry should have considered grooming one of his four original vice presidents to take over for him when he retires instead of bring in an outsider. Any of them would already understand the dynamics of the company and the transfer of power would have caused less Re-evaluate the roles and responsibilities of each person and department so that no one is overlapping or stepping on the toes of the others.
Develop some clear and concise goals for the organization so they can remain # 1. Make sure everyone is working together as a whole. Involve the employees in the changes. Have Eds job as head of the Automation Engineering Department be waiting for him when he gets back. It was not morally correct for Jack to promise him his job and then give it away. Since Larry opted to bring in an outsider, namely Jack Donaldson, to potentially take his position, the original goals and the direction the company wants to achieve should be redefined. 'This would help Jack and the overall company do what is best for all and not just themselves.
They could give Matt Jackson on of the vacant manager positions in the area of testing or new product production. This would eliminate the necessity for Ed to have to find a new position within the company. Maybe also Ed would not be searching outside TKC for a new job. Larry should also inform the senior vice presidents of the changes that are going on and his future plans at TKC. This would give them a sense of job security. Stress that communication is the key issue.
Because Larry has always been straight forward who ever is in charge of the company in the future should do the same. With communication this company should be able to overcome this change in top management. Larry may need to address Jack and the situation before his unfairness gets any more out of control. Bibliography:
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