TUCKER COMPANY

In 1993, the Tucker Company underwent an extensive reorganization that divided the company into three major divisions. These new divisions represented Tuckers three principal product lines. Mr. Harnett, Tuckers president, explained the basis for the new organization in a memo to the board of directors as follows The diversity of our products requires that we reorganize along our major product lines. Toward this end I have established three new divisions commercial jet engines, military jet engines, and utility turbines. Each division will be headed by a new vice president who will report directly to me. I believe that this new approach will enhance our performance through the commitment of individual managers. It should also help us identify unprofitable areas where the special attention of management may be required. For the most part, each division will be able to operate independently. That is, each will have its own engineering, manufacturing, accounting departments, etc. In some cases, however, it will be necessary for a division to utilize the services of other divisions or departments. This is necessary because the complete servicing with individual divisional staffs would result in unjustifiable additional staffing facilities. The old companywide laboratory was one such service department. Functionally, it continued to support all of the major divisions. Administratively, however, the manager of the laboratory reported to the manager of manufacturing in the military jet engine division. From the time the new organization was initiated until February 1999, when the laboratory manager Mr. Garfield retired, there was little evidence of interdepartmental or interdivisional conflict. His replacement, Ms. Hodge, unlike Mr. Garfield, was always eager to gain attention of management. Many of Hodges peers perceived her as an empire builder who was interested in her own advancement other than the companys well-being. After about six months in the new position,