1. Issues
a. Failure to delegate authority to subordinates
b. Weak chain of communication between sales personnel and production
c. Lack of organizational unity
d. Do not treat each department with the same respect and praise
2. Cause Analysis
a. Ramsey Stockwell did not delegate authority to any of his subordinates. Steady streams of his employees were constantly coming into his office asking for his permission to complete tasks.
i. People who would take action for themselves could be bawled out unmercifully at times ii. Employees were left on their own sometimes to make decisions because Stockwell was to busy to get them resulting in wrong decisions at times iii. Stockwell “contracted” lines of authority by giving orders directly to a manager or even a head foreman rather than working it through intermediate levels of authority
b. The sales personnel had a lot of trouble getting reliable information from production as to delivery dates or what stage in the process a product was.
i. Sales and production have a very weak chain of communication
1. Rob Bronson (Sales VP) would always ask Ramsey Stockwell (Production VP) for updates on how everything was going and Ramsey wouldn’t be able to give him a definite answer resulting in uncertainty
2. Bronson did not want to have to call Stockwell every time he needed a status report, he wanted Stockwell to provide him with updates regularly
c. Lack of Organizational Unity
i. The Production facility had some out of dated machines that caused the process to take longer than it necessarily could
d. Each department does not get treated with the same respect and praise that they deserve
i. The sales department would get all the credit from the chairman of the board and the managing director of the company for the great work that they have put in to making this company successful whereas the production department would just let a ‘well done’
1. Annual reports credited sales for the good