Ling Li

2015/10/12

Professor Jennifer

Case Analysis of “Ramrod” Stockwell

Executive Summary

Benson Metal Company is very successful on making variety of metals with small quantities. However, there are some issues in the company because of the conflict between two departments, sales and productions and the problems of the vice president of production, Ramsey “ramrod”. These problems can be illustrated by two types: one is naturally comes from the company, another type of issues come from Ramsey Stockwell. Problems are very common in the company that are price-cutting, guesswork, difficulties with the new aerospace metal and inadequate plant facilities for the company and emotional issues; problems are caused by Stockwell are failing to delegate authority to subordinates, lack of unity and communication chain and sales department and hard to get accurate and reliable information from product division, sales department gets higher praise than other departments.

Analysis

Bases on this case, issues are related to Stockwell is the focus of this case: failing to delegate authority to subordinates, lack of unity and communication chain and sales department and hard to get accurate and reliable information from product division, sales department gets higher praise than other departments. But, I still want to talk about the emotional issues. According to the case, Dick Benson is the son of Fred. However, his ability is average level in the company. This family tie leads unequal between people who are very intelligent and capable.

First, Stockwell failed to delegate authority to subordinates, this issue shows the weak leadership skills of him, the case said that his subordinates just yield out their questions or ask permission, and there is no immediate levels. If this phenomenon continues emerge, it will reduce Stockwell’s authority to control people. He keeps his power and vigor to fight with sales personnel for special orders and frequent changing of schedules etc. However, we all know that a company cannot smoothly operate without authority. This leads to the next issue, which is lack of unity and communication. Weak leadership can cause unsystematic problem in a company. There are some outdated machines cause longer duration to make product. Because of the lack of unity, these machines don't get replacement and concentration. Stockwell pays a lot attention to fight with sales department, he is unwilling to communicate with sales division because he thinks he has more power than sales division: the final outputs will be maintained in production division. He doesn't realize that this behavior will result in lack of communication, then sales people cannot get accurate information from production department, such as delivery date and procession of product. Last, in the meeting, the production department has charged that sales division get achievement by devious strategy, such as misleading

information. However, president still gives sales division high praise about their achievement because they bring the final return for the company. This leads the different respect about different departments, and it will reduce other’s division’s enthusiasm.

In general, this company has more vertical sources of power, like control of people, control of information etc. Although Stockwell is competent, loyalty and knowledgeable, his management style and behavior are not appropriate. He is just interested in aerospace, and focus on details, however, these would require special materials to achieve, and will rise customer’s expectation. And his management style is centralization: he maintain his power and authority and doesn't share information with other divisions.

Recommendations

1. Fire Stockwell. In this company, the reason for failure is the friction between sales division and department division. In addition, Stockwell doesn't want to share information and communicate with sales personnel, so to fire him may be can remove the barrier of communication.

2. Provide mandatory training courses of leadership. The case mentioned that the president has provide courses of leadership, but Stockwell doesn't attend, so if provide mandatory course, may enhance his or other upper levels skills of leadership. This may reduce the friction between two divisions.

3. Empower. Empowering to people is the most effective way to solve problems. Different people have different skills, so empowering right position or power to people and ensuring that they use their power to make the best revenue at the best ways for company. Moreover, empowering is more efficient and effective to the long-run operation.