Organization Design and Dynamics

RONDELL DATA CORPORATIONArif Hartawan | Devi Delicia | Ivan Ciptandi |

Steffanie Yutasya | Tia Angelina | Vincent Fanata

Rondell Data Corporation

• “Organization is the architecture on which enterprises are built, but organizations must be willing to change frequently in order to grow and remain viable” (Cook, Hunsaker, & Coffey)

Company Background

• Founder : Bob Rondell• 1920 established as Rondell Equipment Company

manufacture electrical devices• 1947 radio broadcasting equipment• 1960 data transmission equipment• Company’s growth = 1947 – 100 employees 1978 –

800 employees• Mission :Good reputation as a source of high quality,

innovative designs

Rondell Data Corporation1978 Organization Chart

“He’s a creative genius. Sure the chart says he work for me, but we all know Doc has his own thing.” Forbus

Organization’s Current Design

• Family Spirit • Personal contact communication style+ Key factor recruiting outstanding engineers– Low Formalization– Relationship based on mutual respect– Policies and procedures didn’t work well

• Age/Experience valued– “There’s a real barrier for a newcomer here.” Fred Rodgers

• Little rewards for creativity straight salary plus a share of profit all employees

Organization’s Current Design

• Centralized“ If Doc gets new product idea, you can’t argue.”“ There is no denying that Doc is the most important

person in the company.” Forbus’s subordinates• Functional grouping

Current Issues

• Disputes in organization

New product introduction

research

engineering

sales

production

Sales order Designers Production R&D Production

Current Issues

• Process of Production

• Low communication and coordination“Production engineering is almost nonexistent in this company.” John Oates

Porter’s Competitive Strategies

Differentiation– Learning orientation with

strong horizontal coordination

– Strong capability in research– Values and builds in

mechanisms for customer intimacy

– Rewards employee creativity, risk taking, innovation

Rondell Data Corporation– Learning orientation with

poor horizontal coordination– Strong capability in research– Values and builds in

mechanisms for customer intimacy

– Little rewards for employee’s creativity, risk taking, innovation

Organizational Design

• Mintzberg’s Organizational Type:

Organization Stage

Conclusion and Recomendation

Communication

Coordination

Strong Foundation of Organization

Sales order R&D Designer Production

Sales order Designers Production R&D Production

Conclusion and Recomendation

• Focus on repairing the organization’s administrative and middle management– It could be accomplished by hiring management consultant

• Change Organization design– From Entrepreneurial structure Adhocracy = develops in

a complex, rapidly changing environment– Decentralize

• Hunt and Doc won’t dominate the decision• Another divisions will have their own duties