Case Study 1

A Day at Seagraves
Dr. David Pope, the director of engineering of the Seagraves
Corporation, have lined up task waiting for him. George Jamison, head of
plant engineering, asks for Popes authorization to allow his team to have
overtime just to cover up the damage brought by the fire that caught North
Plant. Pope authorized Jamison. Dr. John Bush, director of Research &
Development (R & D), reported the decision of Sherry Smith that their waste
treatment plant is incapable for the additional load for their new refrigerator
line. Pope assured that hell bring a copy of Jamisons people study to Bush.
Janice, Popes secretary, reminded him of his scheduled appointment,
handed him budget request and a research proposal from the materials
engineering, informed him that Joe Land wants to talk with him about the
new engineer he wants to hire. Pope went through the research proposal and
quickly signed it without reading it. He declined to be a speaker to a regional
meeting and next marked his calendar of his United Way board meeting. He
then read the request from the Industrial Engineering Department and asked
for clarification and further justification of why they need minicomputer and
could not use the companys CDC 7600 computer.
Pope appointed his administrative assistant to attend for him the
meeting at 10 am. He asked Janice to call Joe Land to tell him to come to
him. Pope and Land discussed and finally agreed who to hire for the lead
engineer job and told Land him to check with him first about the salary to be
offered.
He had a 1 hour and 45 minutes meeting with two management
consultant and his assistant about the design to a formal uniform and salary
plan which is the reason why the two were hired by the companys president.
Pope will first discuss the matters to the department heads and assigned his

assistant to work with the management consultants. He had a lunch meeting

with

George

Wallace

and

talked

about

Bushs

concern

about

the

disqualification of the waste treatment plant and he was assured that the
sales will strongly support in spite of the disqualification.
Pope attended the meeting at 2:30 pm to discuss next years budget.
He gave his approval to Oscar Ford, head of quality control, for Fords plan of
redesigning of the final inspection and his need of two industrial engineers
who are under Bill Binford, head of industrial engineering. As soon as the
meeting end Pope requested a meeting at 2:00 pm to discuss about his hope
to grant an across-the-board increase of at least equal to 9% increase of cost
of living during the past 12 months much plus merit increases.
He reminded himself to tell the department heads to make sure that
their people not to have more than an hour of lunch as seeing those four
engineers still playing in the laboratories at 1:30 pm and also that they do
not need anymore his concurrence on little projects.
The end of the day of Dr. Pope but still groaned that he would have to
attend the vice presidents cocktail party by himself because his wife is
attending their sick child.
Case Study Discussion Questions:
1. Can you classify each of Dr. Popes activities as to role or function?
FUNCTIONS:

Pope makes a note to himself to remind the department

heads at the Friday staff meetings to be sure their people
are not taking more than an hour for lunch as he had
notice that four engineers are still playing bridge in one of
the laboratories at 1:30. ---------MEASURING

Pope and Joe Land finally agree on one applicant for a lead
engineer job after discussing each pros and cons of the two
applicants. --------------STAFFING

Pope authorized Jamison to work as much overtime as

necessary to keep the line going. Also he assigned his
assistant to work with the two management consultants.
---------------ORGANIZING

Pope requested meeting about his hoe to grant an acrossthe-board

increase

plus

merit

increases.

---------------------MOTIVATING
ROLES:

Pope asked for strong support from the sales department in

the new

product

committee

meeting the

next

day.

------------NEGOTIATOR

The presidents secretary called to ask Pope to come to a

2:30

meeting

to

discuss

next

year

budget.

----------------SPOKESPERSON

Pope requested for meeting regarding his hope to grant an

across-the-board

increase.----------------------RESOURCE

ALLOCATOR

Pope would have to attend the vice presidents cocktail

party. ----------------

FIGUREHEAD

Case Study II

Office Equipment Corporation

Glen Jordan, president of the Office Equipment Corporation, is
disturbed for the board of directors meeting. It is crucial both for him and for
the organization since it will talk about the 10 year plan and budget for the
next year in which he is going to present two budgets and two plans.
For 40 years the company had made and successfully marketed a line
of typewriters, calculating machines, accounting machines, and tabulating
equipment. Everything had been going smoothly until the last 2 years.
Although total sales is still increasing slowly, but only due to typewriter
increase of volume, sales of calculator is decreasing and accounting and
tabulating equipment had been level.
The firsts plan and budget to be presented in the meeting is being
pushed by Ray Fisk, vice president for sales, which is also sided by Terry
Bufford, vice president of manufacturing. He was proposing major national
promotion that would require 50% increase in advertising project. Just to
balance the overall corporate budget, the plant modernization program will
be postponed and 15% decrease in the research budget. Fisk believed that
this promotion would increase sales and plant modernization could take
place and research budget will be restores afterwards.

The other 10 year plan and budget is pushed by Dr. Fred Hunter,
director of engineering research, and Bob Christian, director of corporate
planning. Hunter was proposing that his engineering staff be doubled over
the next 2 years. His ideas are to develop of a new line of minicomputers
based on large-scale integrated circuit miniprocessors designed especially
for office financial and data processing use in small to medium-size
organization and a new line of typewriters using integrated circuits and
internal memory. His proposal entails indefinite postponement of plant
modernization and raising a large amount of new capital.
On the other hand, Christian presented the forecast done by the
corporate planning group. It is foreseen that sales on the present calculators
and accounting ant tabulating equipment would go zero within 8 years and a
drop of 50% for typewriter sales within 10 years. This forecast was
disbelieved by Fisk and his group and conceded that the corporation might
reduce its prices and increase its advertising. Fisk believed that customers
would prefer to stay to special purpose, transistorized equipment they are
familiar with rather than the new computers which he thought to be too
complicated.
Jordan listened to the two proposals and was confused in which to side
with. Since he came to presidency from sales group, he really did not
understand what Hunter and Christian were saying. He was scared to think of
how to manage if he could not understand the business he is in.
He could see both conflicting arguments made sense. He decided to
present both and let the initiators of proposals defend their argument and let
the board decide.

Case study discussion Questions:

1. Discuss why that each of the participants in the board of director
meeting are taking the position they are.
Each of the participants in the board of director meeting is taking their
position because they want their company to be still alive in the competition
in the market, not to be out of trend with the latest technologies, and also
they want what they thinks is the best for their company. They have their
own opinions and views that they believed that could help the company.
They really just want that the sales of their products will increased.
2. What action would you take if you are outside of the board member?
If I am outside of the board member and be asked on which side to agree,
considering that both proposals made sense, I would listen to the point of
view of both. If for this situation, I would side to Hunter and Christians
proposal. People will really want what will make their life easier and the
answer for that is technology. As have been proposed by the two about the
new products theyre planning to make, it really could compete to the new
trend of the market. Chances should be taken but with precautions also.

3. Do you think Jordan is taking the right approach?

I think that Jordan should not let just the board of directors decide which
proposal to approve and just give his approval also. Since he is the president
of the company he must really decide which side to take though it is really
confusing for him. And also he should not be scared of change; he could read
and study in order to have plans for the betterment of his company. As to
this situation he really needs the advise and hear also the points of the board
of directors in order for him to decide. But still he should plan ahead
whatever 10-year plan and budget would be approved. He should plan what
actions to take if this would be approve or etc...The answer is NOT.

Case Study III

The Warden Company

Paul Warner, general manager of the Military Products Division of the
Warden Company is waiting for Jim Foley, manager of the companys
Program Management Office and Roy Blair, the engineering manager. They
had a meeting yesterday with the Army representatives which turned out
into a fiasco. On that meeting he was shock upon knowing that they were
already a month behind and overspent $100,000 on the project which is a
target tracking system for a M-29 tank which is only contracted for 6 months.
Foley arrived first and they started to talk about what happened
yesterday in the meeting. On the previous projects it always turned out that
engineering and project management could not get along with each other.
Warner always acts as an arbitrator between the two just like what happened
in the meeting yesterday.

Foley defended his side that its the engineering team that caused it.
The function of his office was questioned by Warner. Project management
was set to operation to solve all coordination problems but Warner was upset
with the result. Warner thought of alternatives to solve the problem, since
they cannot go back to the old way when there is no in charge and no central
point for customers concerns.
As Blair arrived, they started to talk about the matter. Blair had
explained why about the overspending and a month behind had happened.
He said that its because the project management did not give permission to
proceed until 3 weeks but also spent waiting for his reply whether to accept
the project. And they were also a month behind because the engineering
spent time also to answer the what ifs asked by the project management.
And their budget was also cut down to 20% thats why there is overrun as
stressed by Blair.
Blair and Foley continued to argue about the lapses of both of their
group. They tried to think of the best way of organization fitted for them.
Thinking of project-type organization but realizing the probable results just
made it not the best fit. Warner dismissed the two with his final words that
they should get along with each other to solve the immediate problem which
is the tracking system for M-29 tank.
As Blair and Foley were leaving, Warner requested Foley to remain for a
minute. As he talked with Foley he knew that manpower is lacking. Warner is
left thinking what he should answer when the General calls as the Army
representatives arrived.
Case Study Discussion Questions:
1. What would you recommend if you were Foley?
If I were Foley

I would recommend to use matrix organization

organized along functional lines,

in which there will be a project

manager to every project. Projects will be born, mature and terminate

in an orderly manner. Each project has direct access to the specific

personnel and expertise required for the projects for a planned time
duration and to the rapid release of surplus manpower as projects need
decrease. Project will still go through the different functions. Project
managers and the functional managers both report directly to the top
management. Project managers should provide unifying coordination
to insure that the project is getting the right attention and required
level of effort from each of the functional areas. And project manager
will

continue

to

monitor

the

status

of

cost,

schedules,

and

performance. Also it is extremely important to clearly define the

responsibilities and authority of each manager.
2. What type of organization structure does the Military Products Division
presently have?
They presently have a functional structure of organization. All similar
activities are grouped together and identified by functional title such as
engineering, etc. It is not matrix structured since not all projects goes
through the project management.

3.

Can the present setup be made workable?

As observed on what happened, the present setup could not work any
longer. Just like Blair and Foley each functional manager is most
concerned with the success of his or her area of responsibility and will
therefore make decisions in favor of that function. The cooperation
between functional areas is also difficult to achieve just like the
engineering

and

the

project

management

divisions.

Project

management should be the one that will make sure that each division
are taking their part for a smooth operation, but this is not likely the

case here. Looks like project management are the one who get
involved in conflicts. Also the Not Invented Here Syndrome is present
to the present setup. Blair and Foley are arguing who should be blame
of the overspending and a month behind to the contract.
4. Should Warner take any action against Blair for agreeing to a budget
and schedule he knew he could not live up to?
He must talk to Blair that he should not agree to a budget that he knew
he could not live to so that overspending may be avoided. Blair could
put the operation at risk and even cause failure.

Case Study IV

American Product, Inc.

American product was adding a new line of lightweight vertical
air conditioners. This new added would weigh less than 50 pounds each and
would discharge the cool air straight down instead of sideways. R&D was
almost completed and the project would be moving to the manufacturing
engineering group in 3 months.

Don Edwards, director of manufacturing engineering of American

Product, is in need for an excellent engineer and a good planner, and who
could get along well with others who will be responsible for all the
manufacturing engineering, a project engineer. He or she is responsible for
everything for smoothening of the project operation. He or she also would
have to work with personnel from different departments. His job specification
is either an industrial or mechanical engineer with 15 years experience in
manufacturing engineering.
Though Edward has a number of excellent engineers on his staff, he is
not sure if any of them is capable and experienced enough to handle this
important project so he decided to get the project manager outside the
organization. George Capra, personnel representative for hiring professional
personnel recommended three applicants for the vacant position.
The first was a woman, Mary Daniels, 36 years old, divorced and had a
child. She had a B.S. and .M.S. in Georgia Tech in industrial engineering. She
had worked for a large electronic firm on the East Coast for 12 years. She is a
lead engineer. From her resume, she had set-up a manufacturing line for
producing electronic air filter and dehumidification. Her present salary was
$5000 lower to the companys people with comparable background as
Edwards noted.
The second applicant was Bill Lions, 45 years old married and had two
child. He had his B.S. Mechanical Engineering in Purdue. He worked for 20
years for a well known manufacturer of heating and air conditioning
equipment. He is now a senior engineer slowly progressed from a draftsman.
Edward could not tell whether Lions had ever fully been responsible for a
project or he always worked under someone else as not stated on his
resume.
The third applicant was Harry Perren, 38 and single. He had his M.S. in
industrial engineering in Pennsylvania State University. He had work for 14
years for 4 different companies. The first 2 years in the plant lay-out for an
aerospace company in California. The next 4 years in the reliability and

quality area in a large farm implement company. The next 5 years in

manufacturing engineering for a Kansa company that manufactured heating
and air conditioning equipment for mobile homes. And the last 3 years in one
of the nations largest heating and air conditioning companies. He is a
project engineer.
Two weeks later, Capra took each applicant on a plant tour in separate
days and discussed personnel policies, fringe benefits, etc before bringing
them to Edwards office. Edward interviewed each of them.
Edwards let the three engineers he took from his group to work in the
project to rate the three applicants. They were impressed with the depth of
knowledge and experience of Lions. They were also favorably impressed with
Daniel but they were not sure how they would get along working for a
woman. Perren had struck them as too much of slam-bang, big time
operator. Capra also rated them; Lion had come across to him as a slow
plodder who had already realized his peak.
For Edwards, Perren stands for him because of Perrens easy going
friendliness, self assuredness and to the fact that he had already succeeded
in similar task. Edward felt that Perren could work and obtain the cooperation
with others.
Carl Kronig, an R&D engineer interrupt Edwards while evaluating the
three applicants at his office. Kronig presented himself to be the project
engineer if Edward would just allow him to transfer to his department. Kronig
had a M.S. in Mechanical Engineering and worked for two years in
manufacturing engineering after he graduated. He said that he learned fast
and could work 24-7 for 4 years. He is the developer and designer of the new
lightweight air conditioner. But Edwards just got cold to his proposal and told
him to think about it talk to his supervisor later.

Case Study discussion Questions:

1. List the pros and cons for each of the candidates.

PROs

CONs

Mary Daniels
Attained higher

Having trouble getting along

educational

with her subordinate

background
Bill Lions

Good experience with regard

to the matter

Have considerable educational

attainment

Had good dealing with his

responsibility, both to
family and work

Harry Perren

Exceptional
experience

as

personality

project engineer

Pleasing
and

very friendly

Very interested in
learning

Still

in

search

for

his

satisfaction

2. Consider each of the drawbacks expressed about each candidate. Are

they valid?

Since there are many bases for selection process of whom to hire, the
drawbacks to each candidate could be valid. Basing on their interview, from
their resume, experienced, status in life, how they mingle with co workers,
and personality--------Edwards seen in what aspects do each candidate has an
edge over the other. But since, change is the only constant on this world it
could not be concluded that the drawbacks seen on each candidate will be
forever be with them. There is always a room for improvement.

3. Is Kronig likely to be able to get the job?

Since then Kronig introduce himself to Edwards that he might fill in the
vacant position, Edward did not really gave attention to his offer. Most
likely he will not get the job. As he showed the effort he put as a
developer and designer to the new line product one consideration also
how will he deal with his subordinates.
4. Who would you choose?
I would be in favor with Perren also, not just being young that had
already an experienced as a project engineer but also because of his
personality, it seems that he can get along with everyone. Because of
his easygoing friendliness, he might get the cooperation of the group
which lead to the success.

On technical aspect, he is also

knowledgeable about what he is going to do.

Case Study V

Raymar Engineering Company

Dr. Joe Kelly, head of new product development, had just returned from
the presidents office where had been questioned for the lack of innovation
of his group. The president was upset because the last five new products
presented to the board of directors were all obvious imitations of the
competitors products. As he was in deep thought Dr. Jeff Rozell, one of the
senior project engineers, appeared at the door. Dr. Kelly and Dr. Rozell had
been working together for 15 years. Ten years ago they had done some
pioneering work on the first microprocessor which put the company to the
forefront of mini and microcomputer technology.
Dr. Rozell could not really get along with Mike Johnson a new staff.
Johnson does not pay attention to the procedures and does not even read the
policy statement. Johnson really indulges himself to his new simulation
language. His only concerned is employing himself and doing what he wants
to do.
Days later, Dr. Kelly found Johnson in his office deeply engrossed in
several pages of coding and seems really excited about the possibility of his
project. Kelly did not understand the things that Johnson had been explaining
to him for almost half an hour.
The next morning, Kelly called a meeting with Dr. Rozell and other two
senior project engineers on his staff, Bill Pierce and Joyce Rowe. He brought
about the new ideas he sees from Mike Johnson. He encourages the senior
engineers to increase their creativity and innovation. Kelly ended the
meeting with the request that the three engineers put their ideas into writing
and submit them to him by the next Friday and believed that this is the
beginning to make some progress in their problem.

Case study questions:

1. Can you identify some of the attitudes, procedures, etc. that might
be inhibiting creativity?
Some of the attitudes, procedures that might inhibit creativity are:
familiarity with certain objects or concepts within a fixed usage context
prevents one from seeing the possibility of other uses.---functional fixedness;
past conditioning and fixed methods of thought cause one to approach in the
same old ways.---habit transfer. Overreliance to authorities may create
barriers. ---dependency on authority; most people pride themselves on being
pragmatic and practical. They insist of solving the problem by getting down
immediately to the facts rather that roaming imaginatively around the
problem.---premature judgment; specialization limits ones horizons, tends to
see the world through the blinders of his professional training.--overspecialization. Fear of failure and ridicule could also limit creativity.
2. Should Johnson be reprimanded or perhaps even fired?
Johnson should be reprimanded of his working styles. He should be
reminded that he is not working alone and on his own but also must be
responsible to follow companys guidelines and policies. And also must
submit to the higher authority though he provides new ideas possible to be
done by the company.
3. What specific idea could you suggest to Dr. Kelly to improve
creativity?
Creative ideas do not come uninvited. They must be sought and
pursued. Since creativity is triggered when one is confronted with something
irritating or disturbing in a situation and decides to do something about it,

Kelly could put his subordinate to do certain task in a limited time that would
allow them to do think of the unique way to do it.
4. Does Dr. Kelly understand his problem?
Yes! He even put his subordinates to a task that would require the
ideas of the three engineers. He understand that their problem is lack of
innovative ideas and hopes that through the task he had given to the
engineers and the ideas he had presented from Johnson to the board would
drove them to think of their own unique solutions.
Case Study VII

Capitol Aerospace Company

Dr. Jerry Lucas, director of the propulsion division, slowly sank down to his
chair as he had come from a private meeting requested by the four section
heads. The four section heads had raised complaints in the meeting
regarding the leadership of their chief Bob Sanford, one of six branch chiefs,
who is not present in there. They complained that they lacked authority
since: Sanfords encourage engineers and even technicians to go directly to
him with their problems; Sanford had reversed their decision on numerous
occasions without even consulting them. They also complained because
Sanford did not allow them to give any clear information or data without his
consent to the outside which pervades the cooperation to the other parts of
organization.
Due to Sanfords practices it created an atmosphere of fear and
suspicion. Everyone in the organization felt that everything they said or did is
reports to Sanford. Each of the four had state that they have great respect
for Sanford as an engineer and his technical judgment. However they could
not tolerate the lack of authority and the oppressive atmosphere. Though not
explicitly stated each of the section heads felt that if something was not
done, they would soon be leaving.

Sanford was by far the best solid expert in the branch and that was the
reason Lucas made him branch chief 2 years ago. He was totally dedicated to
his work.
The next day, Lucas asked Sanford to come to his office. As Lucas had
talked with about the complaints to him, but not naming where he got the
information, Sanford denied every accusation. He was vehement and
aggressively defended himself for those accusations.

Case study questions:

1. Discuss Sanfords leadership style.
Sanford managed the projects under him well enough just like the
propellant project. He is knowledgeable to every details of his project which
his edge. Also because of his commitment he could make the job well done.
His subordinates were unease to him because his really getting into the work
of everybody. He wants direct contact even to the least who are involved in
the operation. He wants everything to be perfect thats why he sees to it that
everything is better or at its best. He is an on hand supervisor which always
checks if the groups are doing their job well.
2. What are the chances that Dr. Lucas can get Sanford to change?
Dr. Lucas could try to talk with Sanford with the real conflict with his
subordinates. He could also send Sanford to a leadership training that will
help him to see his flaws. He could design a socialization that will increase
the bond between him and his subordinates.

3. Should Lucas have met with the section heads without Sanford being
present?
Considering also the fears of the section heads if Sanford would hear
all their complaints, but it is a better idea if Sanford is present during the
meeting. It could lead to hearing of both sides by both of them, and will know
if ever if it is only a misunderstanding.
4. What would you do if you were Lucas?
If I would be him, my best option is to send Sanford to leadership
training. In that way he could learn how to treat his subordinates. He could
new ideas that will help him to be an effective leader. Also may be during
that training his eyes would be open on his own mistakes.

Case study VIII

Melcom Industries
Paul Lutz had been hired to look at the material handling aspects for
the automatic leveling and stabilizing jacks the company made. He had
spent the entire period working on the new material handling system for that
product. He had an edge since he had written his masters thesis under a
professor who was widely known for theoretical work in the area material
handling. He already spent 6 months planning the system, drawing lay-outs,
constructing models, and checking out computer simulations of the proposed
system. He was confident that he had come up with the good design. Bill
Klausner, chief of industrial engineering, supported and encouraged Lutz.
The project Lutz is proposing is being presented to the board. He
began his presentation with series of slides showing the present material
handling system and pointed out the inefficiencies and bottle necks of it. Still

starting to discuss of the assumptions of his computer simulation of the

proposed system, he was interrupted by questions regarding paybacks,
everything that is linked with money.
Lutz was disappointed for he felt that the board was not interested on
how the system would work or all innovations that he put into but the only
concern is money.
But Klausner admitted that it was his fault; that he should make Lutz
run dry the presentation to ahead of time.

Case Study Discussion Questions:

1. Lutz obviously hadnt done his homework. How could this be
precluded?
Klausner may have oriented Lutz what will the board going to ask him
during the presentation of his proposal. He may have given hints to Lutz and
also encourage to work well with his presentation to avoid failure. He must
have make Lutz to practice and master every details of his presentation so
that he can answer every question without hesitation.
2. Will this first presentation affect the ultimate acceptance or rejection of
the project?
A yes to it! It must be consistent that presentations should be clearly
understood and delivered clearly. It must be well prepared so that for any

clarifications and questions the presenters will not panicked answering the
questions.
3. Who should Lutz have contacted before the presentation?
His manager. His manager could correct any flaws of his presentation
and also oriented him on the possible questions he might hear during the
presentation.
4. What do you think of Klausner as manager?
He did not do what is supposed to be his part before Lutz had
presented his proposal to the board. As he said that he should let Lutz
run dry first his presentation to master it. He needs to be fully
responsible and provide means to let his subordinates do his part. He
must be an inspiration in terms of hardwork.

Case Study IX

Elrod Marketing Company

John Elrod founder of Elrod Manufacturing Company had quickly
expanded the company into general manufacturing from a precision tool and
die machine shop. The company prospered and eventually was engaged in
the manufacture of various automotive parts such as gears, axles,
transmissions, metal stampings, and various sheet metal subassemblies. It
ended with six plants in the Chicago-Detroit area that employed a total of 12

000 people. Each plant was operated as a distinct profit center with its own
plant manager, who had a complete staff including sales, engineering,
manufacturing, warehousing, etc.
All capital expenditures of $5000 or more had to be approved by the
vice president for plant engineering; $50 000 or more were approved by the
executive committee consisted by the president, vice president for sales,
vice president for

plant engineering,

director

of

planning, and the

comptroller; $5000 below plant managers were authorized to approve.

Vernon Scott, vice president for plant engineering, was 64 and George
Elrod, son of the founder and president of the corporation, had been worrying
if he would force the requirement of Scott at 65. Several of the plant
managers had complained to the president of Scott. Scott would readily
approve expenditures between $5000 and $50 000 for machinery and
equipment used directly in manufacturing, but he was reluctant to spend
anything on building maintenance, expansion, or modifications that were not
directly manufacturing related. Because of this the plant managers would
break up the project cost to smaller segments each costing less than $5000
a piece since they were authorized to approve anything up to $5000.
One morning, Scott was very angry and waving a set of papers as he
approach the office of Elrod. He found out that Paul Nelson bought a $30 000
computer without his knowledge since he had rejected it when Nelson
proposed it to him. Nelson did just what the plant managers are doing
breaking the cost into smaller segments. Scott wants Nelson to be fired.
Elrod summoned Nelson the next day and talk with him about the
matter. He found out that it was no good to fire Nelson since he is one of his
best plant engineers.
Case Study Questions:
1. Should Elrod fire Nelson?

No! Since Nelson had not violated any of the rules of the company. He
was allowed to approve up to $5000 expenditures. He just used his mind but
also made his work become more efficient because of the computer he had
bought in segments.
2. Do you suppose this is a common practice in all organizations?
Firing an employee upon finding out that he has acquired an
expenditure of more than his allowed approve but having the cost break into
segments? Sometimes, it is better to be wise for the sake of improvement of
his work. I supposed that it is common for all organizations.
3. How can a manager avoid sub managers getting around the control
system in a similar manner?
It would be best if the manager would be open to all proposed
expenditures of his submanagers. By weighing if it is really needed by the
organization. He might avoid like what had happened with Nelson and Scott.
He must consider everything projects not just stick to his standards.
4. What would you do if you were Elrod?
I would do just what he had done. I will not also fire also Nelson
beside he did not even violate any policies.

Case Study X

Monroe Aircraft

The US army had contracted with Monroe Aircraft for both the
development and manufacture of the system of Eagle, a ground to air
missile. The system was designed to be lightweight, hand-held weapon to be
used by infantry against attack helicopters.
Roger Gurley, Eagle project manager, was on his way to the
management review meeting held by Dr. Steve Vinson, vice president for
engineering, to report problems and progress on the particular project under
review.
Gurley felt very confident as he entered the conference room. He
bragged that the scheduled milestone had been met on time, and the
expenditure were actually 5% below budget. His presentation went very well.
The next speaker was Dr. Vivian Walker, head of aerodynamics. She
was surprised that at the presentation of Gurley because the drawings and
specifications had not been released yet but Gurley have presented it
already. She added that there will be additional budget needed to have to
work the job.
The final speaker was John Ringer, head of guidance and control group.
As Gurley was appalled of everything that Walker had been discussing he
questioned Ringer why is this happening. Ringer just thought that would be
ok to tell and gave Gurley the reports but those were not final yet.
Vinson adjourned the meeting with final words that he wants factual
and complete account of the true status and a plan to get them out of the
mess by a week from tomorrow.
Roger Gurley sat alone in the conference room after everyone else had
left. He is still trying to figure out what had gone wrong. What had started as
a lovely day had certainly turned into a disaster.

Case Study Questions:

1. What can Gurley do about Ringers inaccurate reporting?
Gurleys inaccurate reporting caused the entire project into trouble.
Gurley could put Ringer responsible for it. But he must find a way first on
how to get out of the mess that had just started. He must talk to and may be
reprimand him for his doings.
2. Is Gurley guilty of the same thing?
Yes! He was expecting everything to be ok and believe it that way. He
assumed that everything just went right.
3. Is Dr. Walker correct in charging time to the project when no work is
being done?
Dr. Walker is imposing time to the project since they had hired those
engineers for the project with contract though they have nothing to do. It is
their time that the company is paying not the work they have done.
4. What changes if any would you make if you were Dr. Vinson?
All capital expenditures of $5000 or more had to be approved by the
vice president for plant engineering; $50 000 or more were approved by the
executive committee consisted by the president, vice president for sales,
vice president for plant engineering, director of planning, and the
comptroller; $5000 below plant managers were authorized to approve.