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Case Study on Rondell Data Corporation Essay

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The Growth of Rondell Rondell Data Corporation was founded in 1920 by Bob Rondell. Its inception was based on Rondell’s invention of several electrical testing devices. During the 60’s the company had increased its business to include data transmission equipment. Rondell data Corporation had a reputation of being a source of high quality innovative designs. By 1978 they had two major lines known as Broadcast Equipment and Data Transmission, with broadcast equipment accounting for 35% of the company sales, and Data transmission blossoming with increased demand for highly specialized and innovative designs. Sources of Conflicts The conflicts in Rondell started gradually as a result of increase in disputes between research, engineering …show more content…

Each department was required to take care of its members regardless of the impact it may have on the organization. Rondell has a very close family tradition, yet the culture of uncooperativeness still exists among its different departments. It is noted that the firm had experienced a number of disputes between research, engineering, sales, and production people, and each department had blamed the other for Rondell’s decline in profitability. When Rondell was founded in 1920 as Rondell Equipment Co., the Organization’s values based on tradition of “a long-standing reputation as a source of high-quality, innovative design” led to an elitist mentality. Rondell’s employees boasted that they were the best and performed so well because of the family spirit within the old organization. This traditional Elitist model made it hard for the organization to adapt to growth and rapid change. According to (Reimann & Wiener, 1988) “The real test of the effectiveness of a corporate culture comes when the organization’s environment changes. Sometimes a strong culture can be like a millstone around the neck of a firm that is trying to respond to environmental changes”. As the Company grew and added second generation employees, a more formalized structure was needed. The strong “family” culture had become dysfunctional, giving way to divergent subcultures. Recommended Design Changes According to Cook, Hunsaker & Coffey, 1997, p.87. Rondell has a typical organization by

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