Group 5: Acorn Industries, Continental Computer Corporation, and Goshe Corporation
In the case study on the Goshe Corporation, we are introduced to the head of the organization, Banyon. He announced that there would be an average salary increase of 7% for workers. The problem began to arise when the Finance division only received a 5.5% salary increase. The scientific programmers in the Finance division felt that their Electronic Data Processing (EDP) efforts should be duly rewarded, at least as much as any other employee at the Goshe Corporation, considering that this software shortened work schedules and lowered manufacturing costs. This inherently contributes directly to the bottom line, corporate profitability.
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If the annual objective was met, each division manager would receive a year-end bonus, but no attention to organizational growth or future planning was given. In particular, one program management manager’s expertise was entirely in the commercial field; his focus was on profitability and he did not network with various customers. The KMIP was solely beneficial to division managers and not the organization as a whole. In addition to this, Acorn went from being a single product corporation with a short term production cycle, to adopting long-term government contracts with long term production cycles and diversified products. To combat these issues, in 1997 Acorn identified a director or project management. They were forced to bring in new talent to direct these projects. Previously, with just one singular project manager, this manager had a singular philosophy and a centralized locus of control. With this new restructure, many capable employees left Acorn, questioning future growth and career potential. Acorn simply bit off more than they could chew, in too short a timeframe. These organizational structure shifts from a singular manager of short-term product cycles to a well-diversified product mix with many various managers and heads of divisions cannot be done overnight as employees of the old ways will feel out of their element and alienated by a sudden culture change within