Magrec, Inc. Case Study Essay

1161 Words Jun 30th, 2011 5 Pages
Running head: MAGREC, INC. CASE STUDY

MagRec, Inc. Case Study
Toni A Godwin
Submitted to: Professor Tom Ramsey
GM591 – Leadership & Organizational Behavior
Submitted: May 17, 2011

Summary of the Case Study
This case study involves MagRec, Inc., and the conflict caused by perceptions. This company produces magnetic recording heads, an essential device used for reading, writing, and erasing data on tapes and disks. Nine years ago, it was discovered that one of the parts to the magnetic recording heads had a design flaw due to calculations. The design flaw could be reworked to meet all specifications except one – life expectancy. The heads are sold to Partco – MagRec’s largest customer - with a guarantee to last 2 years
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Pat then shows the report to his boss Fred – who just happened to be part of the long forgotten cover-up. Fred explains to Pat how at that time MagRec was under tremendous pressure to maintain the numbers in order to keep Partco. If Partco had been lost at that time it could have had a domino effect causing all of MagRec’s customers to be lost (Schermerhorn, J., Hunt, J., Osborn, R., & Uhl-Bien, M., 2010, p. W-106). Fred assures Pat that it had only been a short-term problem that was corrected within the year and no one ever knew it existed (Schermerhorn, J., Hunt, J., Osborn, R., & Uhl-Bien, M., 2010, p. W-106). He tells Pat to replace the file in the file room and forget about the whole thing. Later Dinah asked Pat what he had found out. When Pat relayed his conversation with Fred and that, he felt Fred had made some valid points. Dinah became enraged and accused Pat of being as guilty as the crooks who had sold the low-life heads as long-life heads. Pat told Dinah to calm down, that the heads were not defective, was not causing any errors, and had happened a long time ago. Although Pat felt terrible about the situation, he felt like the issue was closed with Dinah. However, he would soon find out that Dinah had taken matters into her own hands, called Partco, and spoken to their new vice president.
There are several identified problems with this case study. There is a lack of ethics on the part of

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