Rose Co.

Harvard Case Solution & Analysis

Rose Company
Situation Analysis
The Rose Company is trying to practice a major strategy, which is to change from
a centralized structure of manufacturing organization to a decentralized
structure, in which the activities will be coordinated by the general manager at
the actual production sight that is the Jackson Plant. Rose Company will build a
new plant, where new procedures, processes and methods can be implemented.
The heads of the departments will not be reporting to their functional
counterparts but they will be under the leadership of the plants general
manager.Therefore, the major concern for Rose Company in this case is the
implementation of the strategy and not its evaluation.
There are various concerns that must be taken into account when implementing
a defined strategy by the general manager. I will be dealing with a set of changed
relationships to make a decentralized structure to function properly. There is a
potential threat of constraints and barriers inside the company even with the
new policies placed according to the current strategy. I am a new person at the
Jackson plant and this is my first assignment in a major line job. My
implementation skills will determine the success or failure of the strategy and a
number of analytic, administrative and leadership skills are required to develop
this implementation.
The change management requires proper measurement and strategy in order to
improve and motivate the people to achieve the goals of the company. The
changes required at Rose Company are urgent but need to be taken at a
medium pace instead of slow or fast because record of Jackson plant has not
been satisfactory for several years, and a medium paced strategy will enable to
identify and address potential issues as they arise. To improve the performance
of the plant; cost reduction and quality improvement of products is required to
maintain competitive leadership and product advantage.
Problem Identification
Changes in the Organizational Structure
As the general manager, I have control over all functions and personnel at the
Jackson plant, except sales. Instructions issued from the headquarter by the vice
presidents of manufacturing, production planning, quality control, industrial
relations, and the other functions will go to the Jackson plant through me.
Problems will arise, if executives insist on maintaining a dotted-line relationship
with their functional counterparts at the Jackson plant because cross functional

relationships presented by dotted lines usually creates ambiguity within the

structure. Connecting individual employees with dotted lines to functional vice
presidents can result in confusion over who can direct the employees tasks.
Management Control System
Although, it is not clearly specified, but the logic follows that the new Jackson
plant can be considered as a cost center, which incurs cost but does not
generate profits. That is why performance will be measured by my divisions
ability to reduce production costs while still maintaining quality. Managers who
do not agree with my decisions know that they can easily escalate concerns to
top, whether or not it is reasonable. After all, there is no clear management
control system in place yet. This will result in dysfunctional behavior of
managers and each of them will work for their own department rather than
working for the company as a whole.
Power and Politics
From the point of view of the Jackson plant personnel, I possess formal or
borrowed power, which is power that was given to me by top management
(Timm L. Kainen). My lack of experience in managing people and seemingly
abrupt entry into the dynamics of the plant may pose some problems in the
dynamics between me and my managers. Commitment to an individual with
formal power is less likely to develop as opposed to one with reward power; one
that has the ability to administer to another the things that he or she desires or
to remove or decrease things that he or she does not desire. In this case, Rose
Companys vice presidents have this power even if I determine the rewards that
they deserve to receive.
We have to consider that prior to the changes at the Jackson plant, all of the
Rose Company plants operated without a general manager. In addition, now the
managers at the Jackson plant may feel that some power is taken away from
them because of me. A natural initial reaction to such drastic changes is
resistance and dotted-line relationships that only increase the likelihood of
active resistance.
Alternative Solutions
Defining dotted-line reporting
The new organization structure presented in exhibit 2 suggests the dotted line
relationship between plant employees and home office executives. The
maintenance of the dotted line relationship between VPs at the head office and
counterpart functional managers at the plant needs to be defined including the
nature of this dotted relationship, and to what extent is the reporting required in
this relationship. Proper standard operating procedures must be designed and

implemented at the plant otherwise there is a risk of bypassing my decisions

and continuing with the old ways. VPs at the head office should ..
This is just a sample partial case solution. Please place the order on the website to
order your own originally done case solution.
Accounting appointed executive director of the plant, its first major line
function. The plant will operate on a decentralized basis, in contrast to other
plans of the company. Administrative problems are expected. Hide
by Edmund P. lessons Ralph M. Hauer Source: Harvard Business School 3 pages.
Publication Date: March 1, 1953. Prod. #: 453002-PDF-ENG

Rose Co. Harvard Case Solution & Analysis

Rose Company
Situation Analysis
The Rose Company is trying to practice a major strategy, which is to change from
a centralized structure of manufacturing organization to a decentralized
structure, in which the activities will be coordinated by the general manager at
the actual production sight that is the Jackson Plant. Rose Company will build a
new plant, where new procedures, processes and methods can be implemented.
The heads of the departments will not be reporting to their functional
counterparts but they will be under the leadership of the plants general
manager.Therefore, the major concern for Rose Company in this case is the
implementation of the strategy and not its evaluation.
There are various concerns that must be taken into account when implementing
a defined strategy by the general manager. I will be dealing with a set of changed
relationships to make a decentralized structure to function properly. There is a
potential threat of constraints and barriers inside the company even with the
new policies placed according to the current strategy. I am a new person at the
Jackson plant and this is my first assignment in a major line job. My
implementation skills will determine the success or failure of the strategy and a
number of analytic, administrative and leadership skills are required to develop
this implementation.
The change management requires proper measurement and strategy in order to
improve and motivate the people to achieve the goals of the company. The

changes required at Rose Company are urgent but need to be taken at a

medium pace instead of slow or fast because record of Jackson plant has not
been satisfactory for several years, and a medium paced strategy will enable to
identify and address potential issues as they arise. To improve the performance
of the plant; cost reduction and quality improvement of products is required to
maintain competitive leadership and product advantage.
Problem Identification
Changes in the Organizational Structure
As the general manager, I have control over all functions and personnel at the
Jackson plant, except sales. Instructions issued from the headquarter by the vice
presidents of manufacturing, production planning, quality control, industrial
relations, and the other functions will go to the Jackson plant through me.
Problems will arise, if executives insist on maintaining a dotted-line relationship
with their functional counterparts at the Jackson plant because cross functional
relationships presented by dotted lines usually creates ambiguity within the
structure. Connecting individual employees with dotted lines to functional vice
presidents can result in confusion over who can direct the employees tasks.
Management Control System
Although, it is not clearly specified, but the logic follows that the new Jackson
plant can be considered as a cost center, which incurs cost but does not
generate profits. That is why performance will be measured by my divisions
ability to reduce production costs while still maintaining quality. Managers who
do not agree with my decisions know that they can easily escalate concerns to
top, whether or not it is reasonable. After all, there is no clear management
control system in place yet. This will result in dysfunctional behavior of
managers and each of them will work for their own department rather than
working for the company as a whole.
Power and Politics
From the point of view of the Jackson plant personnel, I possess formal or
borrowed power, which is power that was given to me by top management
(Timm L. Kainen). My lack of experience in managing people and seemingly
abrupt entry into the dynamics of the plant may pose some problems in the

dynamics between me and my managers. Commitment to an individual with

formal power is less likely to develop as opposed to one with reward power; one
that has the ability to administer to another the things that he or she desires or
to remove or decrease things that he or she does not desire. In this case, Rose
Companys vice presidents have this power even if I determine the rewards that
they deserve to receive.
We have to consider that prior to the changes at the Jackson plant, all of the
Rose Company plants operated without a general manager. In addition, now the
managers at the Jackson plant may feel that some power is taken away from
them because of me. A natural initial reaction to such drastic changes is
resistance and dotted-line relationships that only increase the likelihood of
active resistance.
Alternative Solutions
Defining dotted-line reporting
The new organization structure presented in exhibit 2 suggests the dotted line
relationship between plant employees and home office executives. The
maintenance of the dotted line relationship between VPs at the head office and
counterpart functional managers at the plant needs to be defined including the
nature of this dotted relationship, and to what extent is the reporting required in
this relationship. Proper standard operating procedures must be designed and
implemented at the plant otherwise there is a risk of bypassing my decisions
and continuing with the old ways. VPs at the head office should ..
This is just a sample partial case solution. Please place the order on the website to
order your own originally done case solution.
Accounting appointed executive director of the plant, its first major line
function. The plant will operate on a decentralized basis, in contrast to other
plans

of

the

company.

Administrative

problems

are

expected.

Hide

by Edmund P. lessons Ralph M. Hauer Source: Harvard Business School 3 pages.

Publication Date: March 1, 1953. Prod. #: 453002-PDF-ENG

Rose Co. Harvard Case Solution & Analysis

Rose Company
Situation Analysis
The Rose Company is trying to practice a major strategy, which is to change from
a centralized structure of manufacturing organization to a decentralized
structure, in which the activities will be coordinated by the general manager at
the actual production sight that is the Jackson Plant. Rose Company will build a
new plant, where new procedures, processes and methods can be implemented.
The heads of the departments will not be reporting to their functional
counterparts but they will be under the leadership of the plants general
manager.Therefore, the major concern for Rose Company in this case is the
implementation of the strategy and not its evaluation.
There are various concerns that must be taken into account when implementing
a defined strategy by the general manager. I will be dealing with a set of changed
relationships to make a decentralized structure to function properly. There is a
potential threat of constraints and barriers inside the company even with the
new policies placed according to the current strategy. I am a new person at the
Jackson plant and this is my first assignment in a major line job. My
implementation skills will determine the success or failure of the strategy and a
number of analytic, administrative and leadership skills are required to develop
this implementation.
The change management requires proper measurement and strategy in order to
improve and motivate the people to achieve the goals of the company. The
changes required at Rose Company are urgent but need to be taken at a
medium pace instead of slow or fast because record of Jackson plant has not
been satisfactory for several years, and a medium paced strategy will enable to
identify and address potential issues as they arise. To improve the performance
of the plant; cost reduction and quality improvement of products is required to
maintain competitive leadership and product advantage.
Problem Identification
Changes in the Organizational Structure
As the general manager, I have control over all functions and personnel at the
Jackson plant, except sales. Instructions issued from the headquarter by the vice

presidents of manufacturing, production planning, quality control, industrial

relations, and the other functions will go to the Jackson plant through me.
Problems will arise, if executives insist on maintaining a dotted-line relationship
with their functional counterparts at the Jackson plant because cross functional
relationships presented by dotted lines usually creates ambiguity within the
structure. Connecting individual employees with dotted lines to functional vice
presidents can result in confusion over who can direct the employees tasks.
Management Control System
Although, it is not clearly specified, but the logic follows that the new Jackson
plant can be considered as a cost center, which incurs cost but does not
generate profits. That is why performance will be measured by my divisions
ability to reduce production costs while still maintaining quality. Managers who
do not agree with my decisions know that they can easily escalate concerns to
top, whether or not it is reasonable. After all, there is no clear management
control system in place yet. This will result in dysfunctional behavior of
managers and each of them will work for their own department rather than
working for the company as a whole.
Power and Politics
From the point of view of the Jackson plant personnel, I possess formal or
borrowed power, which is power that was given to me by top management
(Timm L. Kainen). My lack of experience in managing people and seemingly
abrupt entry into the dynamics of the plant may pose some problems in the
dynamics between me and my managers. Commitment to an individual with
formal power is less likely to develop as opposed to one with reward power; one
that has the ability to administer to another the things that he or she desires or
to remove or decrease things that he or she does not desire. In this case, Rose
Companys vice presidents have this power even if I determine the rewards that
they deserve to receive.
We have to consider that prior to the changes at the Jackson plant, all of the
Rose Company plants operated without a general manager. In addition, now the
managers at the Jackson plant may feel that some power is taken away from
them because of me. A natural initial reaction to such drastic changes is

resistance and dotted-line relationships that only increase the likelihood of

active resistance.
Alternative Solutions
Defining dotted-line reporting
The new organization structure presented in exhibit 2 suggests the dotted line
relationship between plant employees and home office executives. The
maintenance of the dotted line relationship between VPs at the head office and
counterpart functional managers at the plant needs to be defined including the
nature of this dotted relationship, and to what extent is the reporting required in
this relationship. Proper standard operating procedures must be designed and
implemented at the plant otherwise there is a risk of bypassing my decisions
and continuing with the old ways. VPs at the head office should ..
This is just a sample partial case solution. Please place the order on the website to
order your own originally done case solution.
Accounting appointed executive director of the plant, its first major line
function. The plant will operate on a decentralized basis, in contrast to other
plans

of

the

company.

Administrative

problems

are

expected.

Hide

by Edmund P. lessons Ralph M. Hauer Source: Harvard Business School 3 pages.

Publication Date: March 1, 1953. Prod. #: 453002-PDF-ENG