Ramrod case inquiries and answers essay

1 . What kinds of products and technologies really does Benson Metals use?

How have these been changing recently? Benson Metals, a medium-sized manufacturer of specialised steel products, has usually used a craftsliketechnology to make a variety of precious metals. In terms of Perrow’s model of technology, task range andtask analyzability are low, as there is still guess work, skill, and in many cases some “black magic inmanufacturing products. Benson also produces metals in very small quantities”pounds not tons”so thatin conditions of Woodward’s model it can be small group, and the expertise and knowledge of production people aremore significant than devices in getting the task done”task complexity is low.

Lately, the company offers moved into making sophisticated and technically tough steels pertaining to theaerospace market. Not only are they challenging to produce, these types of steels require more analysis skills, metallurgical analysis, and refined handling in most stages of production. They may be produced to verystringent technical specs. In terms of Perrow’s model, job variety has grown and process analyzability hasfallen”production is more non-routine and research oriented and depends even more on the expertise, experience, know-how, and common sense of creation personnel.

Companies cannot imitate these skills, so they will form acompetitive advantage. The surroundings surrounding the company has changed to more concern because a new range of products is definitely manufactured. The two technology and environment include changed, influencing the contingencies facing the corporation, and raising potential hazards and earnings.

2 . What problems is usually Benson Precious metals encountering as it changes products and technologies?

An increased level of discord between revenue and production poses a problem. Production is definitely responding tothe new stresses facing the corporation, yet it truly is continually struggling with product sales. Sales wishes a rapidresponse to unexpected customer asks for or attempts to discover production’s plans or when the completed product will be ready. Comfort is dropping as the consequence of these conflicts spread. Managers in different features are taking factors, usually going with sales against Ramrod and production. Communication and decision-making haveslowed resulting from uncooperative perceptions. Integration between functions is definitely falling. This is certainly dangerousfor nonroutinetechnology that requires if you are a00 of differentiation and the usage to be effective.

three or more. What is creating these complications in Benson Metals?

The sources of the conflict could be isolated. Maintain the discussion aimed at the people, principallyRamrod, and examine what he’s doing wrong; this approach makes the later research of electricity moredramatic. The attitudes and behavior of Ramrod Stockwell cause the situation. Although he’s competent, this individual causesconflict inside his personal function and other functions. In the own function he does not delegate authorityand keeps the reins of power in the own hands. He contains a centralized supervision style and does not shareinformation, that makes it impossible intended for subordinates to provide salespeople with all the information theyneed. He will not follow the chain of control; he would go to people only when he requires them. Violatinglines of specialist reduces the authority of his managers and also leaves them unaware. His perceptions affect interactions with other functions, especially sales, because he likewise does not allowsubordinates to share any but schedule information. As a result of centralization of authority in production, subordinates do not possess data. Only Deceive Bronson, the vice president of sales, canget information via Ramrod, and he is too busy for this (and as well proud as he would need to admit 232

dependency about Ramrod). Stockwell says some thing can be done but fails to offer an accurate time-frame, making planning difficult to get sales and other departments”making them dependent on Ramrod. Ramrod is a “rough diamond and provides little social contact with other top managers at Benson Metals, which will further dampens him. Managers have recommended sensitivity training to help him better communicateand delegate. The final outcome is that Ramrod is the problem”his attitudes and values. What is the solution? FireRamrod? Following the pros and cons have been considered (the firm will lose his valuable expertise andexpertise), the trainer can turn the discussion to the concern of the business power composition; studentsrarely raise this issue. 5. In the past, which in turn function has had the most electrical power in Benson Metals? How has the power romance between production and revenue been changing recently? Customarily, sales provides enjoyed almost all of the power:

¢President Tom Hollis worked with Fred Benson the sales movie director.

¢Most of the “assistant to managers groomed to get promotion originate from sales.

¢Sales has got the credit for good work while production is blamed in the bad years.

¢Sales can slide orders in the production procedure, although, as with the Continental Can case, this causes significant issues that will increase because the class of the metalsincreases.

¢Production managers play second fiddle to salesmen: They have inferior facilities andlimited access to methods and to leading managers. The regular power of revenue reflects the very fact that during the past, the main contingency facing Benson wasto promote its products in a competitive market against 4 or 5 other companies who have compete to get thesame consumers. In this environment, developing consumer relationships and servicing clients is veryimportant. Recently the surroundings has changed and production is now more important”only production can produce the sorts of steels clients want. Inside the new competitive environment:

¢Production controls the primary contingencies.

¢Production is becoming central and nonsubstitutable.

¢Production minimizes the uncertainty facing sales, not the other way round.

Even though the power of production is usually increasing, Benson’s internal electricity structure does not reflectthis modify. Rob Bronson, the revenue manager knows the change but deliberately avoids an alteration in thestatus of revenue, and the effect is issue. The message is that could be Ramrod is usually not the challenge; it is Benson’s unchanged internal power structurein a transformed environment. Ramrod’s attitudes and behaviors appear logical once it is realized that hewants to increase his function’s electricity and position in the corporation:

¢He won’t delegate expert and share details to increase his power above sales.

¢Information is a electricity resource, through hoarding data he can increase the uncertaintyof various other departments and the dependence on him.

¢He agrees to all requests yet gives zero feedback.

This kind of increases his power besides making himnonsubstitutable. Ramrod, consciously or unconsciously, is usually withholding details to increase the dependence of otherson him and to replace the balance of power in his favor. A powerful CEO will understand this and might 233

publicly recognize the importance of production and correct the imbalance. The chairman and his son areweak and the director is from sales, therefore nothing is made. The level of turmoil is rising as salesfights back. a few. Suggest a few ways to make an effort to solve the difficulties the company is definitely experiencing. What would be a good strategy for transform? There are several techniques for increasing the strength of production vis-à-vis sales.

¢Like Continental Can, Benson should create a development control division to buffer salesand creation and reduce or eliminate sales’ ability to slip new buyer orders in the production process. All asks for should circulation through production control, which usually transmitsthem to production. This kind of reduces sales’ traditional electricity over creation and helps promotea power stability.

¢The support of top management is vital for a change in attitudes, and top managing needsto recognize the increased status of production openly.

¢To boost the status of production, best management can improve developing facilitiesand give Ramrod a larger office and staff, a more central site, and higher access to topmanagement.

¢Create a task force to measure how environmental changes have an effect on working relationships andto enhance perceptions from the importance and status of production.

¢Send Stockwell into a management training course to improve his skills at delegation.

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