Chris Cudney

Princess Gatela
Lonnie Horsey
Kyle Melnick
Tamara Moffitt
Jack Traxler

MGMT 310A
Dr. Oliver Schilke
March 30, 2018
Major Report
What is Honeywell?
Honeywell Is best described by the words of one of its employees, “Honeywell is a high growth
technology with leadership… I’m proud to be involved in developing innovative new products,
services and technologies allowing customers to be safer, more efficient and secure” (Interview).
The company is a well-known name among all of its industries. Honeywell has spread its reach
into diverse, yet interconnecting categories. By branching into different markets, Honeywell has
been able to vertically integrate its production line. For example, they have branches in the
Aerospace, Industrial, and Vehicles marketplace, which often needs to pass multiple safety and
security regulations. Fortunately, Honeywell has also invested in the Safety and Security
industries, which allows them to use internal resources. The combination of investing in a variety
of products and services should allow them to maintain profitability, efficiency, and employee
satisfaction. Unfortunately, that is not the case.

Data Collection
For this major report, we sent 10 questions to a fellow group member’s father, William Traxler.
Mr. Traxler has been with Honeywell for 34 years and has held multiple function roles in
“Advanced Technology, Engineer, Program Management, Sales Market, Operations and General
Business Management” (Interview). Not only does this qualify him as a reliable source on the
company, but it also gives us multiple insights about the company’s management at different
levels of power.

Honeywell claims to seek 8 behaviors when hiring and performing reviews of employees: Have a
passion for winning, be a zealot for growth, think big...then make it happen, act with urgency, be
courageous, go beyond, inspire greatness, and become your best (Interview). This would seem as
an ideal environment for passionate and innovative employees, correct? Wrong. Mr. Traxler
identified two management issues that Honeywell hasn’t addressed: Too many decisions are
made at a senior level, which caused the second issue, organizational goals are not prioritized
correctly. As a result, Honeywell has seen a constant in-and-out flow of leaders because they feel
too constrained and not challenged (Interview). Leaders are not given the chance to “think big”
or “be courageous”. However, we were not given the impression of a bad company. In fact, Mr.
Traxler explained that leader welcome “frank discussion and feedback, especially around new
growth ideas”. Honeywell maintains a productive and innovative leader in each of its fields.
However, addressing these two management issues could lead to a more efficient turn-around
and leaders would be more inclined to stay if they believe their opinions matter and they are able
to make a difference in their respective powers.

OB/MGMT Problem #1
Lower Level Management Decision Making
The managerial issue that arises within the ranks of Honeywell is one that has been inspired by
hierarchy. The issue that we have seen arise is the lack of decisions being made by lower level
management. The way the current system runs is that senior leadership makes all of the
decisions, mostly at the presidential level. This detracts from business operations as it slows
down efficiency and disenchants lower level managers. New products and ideas cannot be
streamlined because the decision making process has to move all the way up the hierarchical
ladder before any new idea can be enacted. This decision making process has lead to lower level
managers leaving their positions on the fact that they feel “constrained and not challenged”
(Interview). This is an issue because our lower level management is disengaged with their
current level of power and the way the current system works is that all of their power is given to
senior leadership of which the workload is hefty. This has ultimately caused a immense loss of
leadership and talent.

Antecedent
This issue has come from old style of leadership that we have integrated into our hierarchical
structure. Our current system makes sense in that every decision is crucial so you want your
highest level of management to make the final decision. An article from the Journal of
Management states “if delegation of decision making and splits in authority adversely affect
information processing, then organizations exhibiting these characteristics should be more prone
to make errors” (Leiblein, et al.). For certain organizations delegating decisions down to lower
management does cause issue, but in our circumstance not passing decision is detrimental to our
effectiveness. The issue is that as we have seen this slows down efficiency in all regards. In the
past we have not rightfully trained or trusted our mid and lower level management so they have
not been delegated to make decisions. “We need to let our leaders lead and not wait for approval
above” (Interview). Even high level managers agree to the proposition of letting all leaders make
decisions for their subordinates. The current process works but is wildly inefficient and is
causing us to lose talent. Finding competent lower level managers can expedite many of our
decision making processes.

OB/MGMT Problem #2
Prioritization of Organizational Goals
Our second problem is that the organizational goals are not passed down to the rest of the
company which leads to ambiguity, misalignment and sometimes confusion through the rest of
the company. Mr. Traxler states:

“Number one cause of conflict is due to lack of goal alignment across the organization.
Some functions are siloed and their goals not aligned with the enterprise’s goals. If they
are measured and rewarded on these conflicting goals this causes conflict. Typically, you
need to move up the organization to resolve these conflicts, many times up to a VP or
president level” (Interview).

Due to this issue, Honeywell cannot operate to its highest possible efficiency. If employees do
not understand the urgency of organizational issues consistency, the ambiguity and confusion
will increase, leading to a more inefficient production line. For a company who markets their
ability to give consumers a convenient and efficient life, their own organization can get bogged
down from inappropriate prioritization. If Honeywell, as a large corporation, cannot have its
employees come to an understanding, the disconnect will cause greater problems. These
managerial issues may be a small fraction to this global company, but if not addressed soon, one
cannot fully predict the consequences. Therefore, our group has conducted research from articles
and lecture materials to present a few possible solutions.

Training
The first solution is retraining current manager on how to be servant leaders. The guest lecturer
presented the possible effectiveness of this tactic. We should allow our lower level employees to
feel like they matter. If they feel a disconnect from upper level managers then they will feel
uneasy about making decisions on their own and lead to a less than efficient business. So by
introducing servant leadership training and by placing emphasis on our managers using it we will
create a better business.

Communication
Communication is key in all aspects of business. We should create a better system to use to
communicate throughout the business. The more knowledge the people have at the bottom, the
better our business will run. By bridging the communication gap between the top and bottom
powers, we can streamline the decision-making process. Communication is key in all businesses
especially one who has the motto: “The power of connected”.

Future outlook
By focusing on the communication throughout the corporation we will become a more efficient
company, a more connected company and overall a better company. Retraining managers will
create a more welcoming environment for all employees, better leaders, and as well as a better
culture. Honeywell already has a semi-strong culture, as can be seen by the “8 Honeywell
Behaviors”. However, bridging the communication gap will create a strong culture for future
employees and the likelihood of managers leaving will decrease(Liu, Jiang, Shalley, Keem, &
Zhou). Managers will feel just as valued and become more challenged in their their respective
positions.

Recommended Solutions
Employee Value and Appreciation
Overall involvement of managers and employees at all levels needs to increase in the decision-
making process. We need our employees to feel valued. If we want a high employee retention
rate, they need to be consistently remind of their value to the organization (Sukawati, & Astawa).
Individuals tend to leave companies because they do not feel valued, supported, connected to the
organization, supported by colleagues, and have no say in the decision-making process. In order
for our company to overcome the challenges we are currently facing, a company culture should
be instituted to make individuals feel appreciated and valued.

This is not simple endeavor. It will take time but most importantly, it will take a group effort. We
plan on doing this by:

• Connecting our employees to our organization

• Showing them that they are needed
• Challenging them
• Recognizing them as individuals
• Listening to them

These steps will help create a strong culture. A culture where the employees feel valued and
offered growth and promotional employees will decrease managers likelihood of leaving. Once
our employees feel that they can contribute meaningful ideas, they will feel empowered. They
will truly feel like they are a part of the Honeywell family.

Effective Communication
In order for our company to give the public the products and services they need and to remain a
leader in our industry, we need to ensure that everything is functioning within the organization at
a high level. One of the ways we can do this is by having effective communication amongst all
company employees. We plan on implementing the following strategies to make sure that all
employees stay informed:

• Keep Your Door Open

• Over-communicate
• Conduct Quarterly Reviews
• Hold Regular Meetings
• Check-in Frequently

If we can successfully implement these five strategies, we will stimulate cooperation, teamwork,
leadership, and motivation amongst all employees within our organization. These things will
enhance our company culture and will allow us to take the next step in the connected home
industry.

Unintended Consequences
Accurately predicting unintended consequences can be very hard. Predicting the actions and
interpretations of employees in reaction to a chosen solution may seem easy if you feel you know
your employees, and feel you know how the change will be received, but it just takes one person
with the power of persuasion to alter the response of many. Organizational culture will also
affect the outcome of organizational change. ( Lewis, Schmisseur, Stephens, Weir)

• Management loss of power

• Trust gap widens
• Productivity lost
• Stress levels rise

Changes in management, such as re-assigning duties, can unintentionally cause employees to

doubt the validity of managerial power. In the case of re-assigning duties, it could make it appear
as if the managers are not worthy of their position. It may also cause concern about the integrity
of the company itself if the changes are too big and eventually widens the trust gap between
management and employees. It may also affect productivity and raise stress levels.
Implementing the effective communication plan, as stated above, will greatly reduce the trust
gap. Employees want feel like they are involved whether they have any actual input or not.
Transparency is a major part of what today’s employees want.

Communicate Findings & Overcoming Resistance

Given that the main issue is that decisions are made at a senior level, it’s evident that any
resistance to change would be coming from the higher levels of power. Therefore, the first step is
to build a significant following of change leaders (Kraft, Sparr, Peus). As stated earlier,
Honeywell is far from being unproductive or inefficient. However, the two issues has caused
ambiguity and lack of challenge to employees in the lower level of powers. Understandingly, we
recommended retraining managers as servant leaders, however first, we need change leaders.
Regardless of which level a manager is in, the constant change of individuals in a position will
cause a disruption. The new replacement will need to be updated and trained which can be
avoided if leaders are satisfied with their position and workload. Therefore, a strong group of
change leader would exhibit their concern of the organization as a whole, regardless of their level
of power. Once the change leaders have established a strong hold and a change in the decision-
making progress is on the horizon, then the retraining of managers may begin. However, we need
the senior level of management to listen; and the change leaders are meant to open the eyes of
those in high power.

Definition of a Change Leader

As stated in the book, some characteristics of a change leader includes personal initiative to
move beyond defined boundaries, ability to motivate oneself and others, courage to challenge
existing power bases and norms, and most importantly, ability to maintain a low profile and
share credit (Ranjay, May & Nohria 11-5B). If decisions are already being made on a senior
level, addressing any management issues will most likely be suffocated. However, if there is a
group of change leaders willing to collaborate equally and challenge the existing power norms,
there is a greater chance of success. We want to see a change in which level a decision is made.
Leaders closer to the functions of a project will have a better idea of which functions to prioritize
funds, personnel, time, etc. It is also crucial for the leaders to be influential motivators because
they would be going against the organization's norms. To create a bigger group of change, they
need the ability to communicate their plans for future well to others who are more nervous to go
against the senior level of management.

Combating Resistance
The four components to combat resistance is to listen, communicate, involve, and train the
fellow colleagues (Ranjay, et al. 11-5). The group of change leaders should be employees who
have experience and knowledge of the company goals and values. They need to be seen as equals
of the majority, but they need to possess the authority of change. The group of change leaders
need to build trust between the two parties that we are here to change the organization’s norms.
We need to communicate our plans to change how decisions are made, and this will be appealing
to the managers at lower levels. As we begin to involve these other managers, their team
members will begin to support us due to loyalty. If the chosen change leaders are truly strong
individuals, their influence over the majority will spread like fire. The force of change must
engage the hearts and minds of the majority.

Conclusion
It is evident that the possible solution to our problems will not be a simple task. The benefit is
that we can use the 8 Honeywell behaviors as a strong driving force to create a following. Once
the benefits of the change are realized, it will be impossible for senior management to ignore. An
important point to clarify is that the suggestion is not to create a union or turn-over. Rather a
simple re-prioritizing of the importance of certain organization goals. It is more common that the
most efficient goal to focus on would be best known by those closer to the issue. Senior
managements do not always have first-hand knowledge of a situation. They may not realize the
urgency, and that is no one’s personal fault. In fact, it is a common status-quo bias. However, for
a company that supports growth and inspires greatness, the change would only benefit them into
expanding into larger horizons.
Appendix: Interview Questions With William Traxler

What makes you proud to work at this company?

Honeywell is a high growth, technology company with leadership across our Aerospace
products. I’m proud to be involved in developing innovative new products, services and
technologies allowing our customers to be safer, more efficient and secure. We do things
that none of our peers can match!

How does the organization support your professional development and career growth?
I’m been able to grow over my 34 years career at Honeywell based on being assigned to
lead numerous challenging projects and organizations, including multiple function roles
from Advanced Technology, Engineering, Program Management, Sales, Marketing,
Operations and General Business Management. Also, Honeywell has provided
exceptional leadership development training for my various executive roles over the
years.

Is risk-taking encouraged, and what happens when people fail?

Yes, intelligent risk-taking is encouraged and even tied into one of our corporate
behaviors below (Think big..make it happen). If people fail, they are expected to capture
the “lessons learned” for the failed project and learn from it to be successful in the next
opportunity.

What role do company values play in hiring and performance reviews?

The 8 Honeywell behaviors below are used in down-selecting new hires as well as are a
critical part of our annual performance assessment process and compensation planning.
These are critical for shaping the Honeywell values and to drive results.
● Have a Passion for Winning
○ Understand and beat the competition. Never give up in the face of
resistance and setbacks. Have fearless accountability for getting results.
Be consumed with making things better and have an insatiable curiosity
for learning.
● Be a Zealot for Growth
○ Solve problems and see the world through the customer’s eyes. Promote
confidence and trust. Aggressively focus on new opportunities and obsess
over growth. Understand what creates value for customers. Promote a
customer-centric organization that has a deep understanding of the needs
of our customers
● Think Big… Then Make it Happen
 ○ Dream of the possibilities instead of limitations. Be willing to re-examine
almost anything. Innovate with agility, iterate, test, try, take risks.
Translate the best ideas into realistic, pragmatic, executable plans.
● Act with Urgency
○ Act quickly when faced with ambiguity. Get the facts that you can, think,
and then move with lightning speed. Use speed as a differentiator. Never
put off until tomorrow what you can do today
● Be Courageous
○ Take bold action on what you believe is right. Confront problems directly
and face adversity head on. Be comfortable being unpopular when
required and press on. Take on seemingly impossible goals and work out
of your comfort zone.
● Inspire Greatness
○ Empower, develop, and set high expectations of direct reports, peers, and
others. Bring others with you, achieve things you never thought possible,
and celebrate your wins
● Become Your Best
○ Seek and accept feedback wherever you can get it, decide what to change,
and go for it. Be curious, and be confident and humble. Read others’
reactions, and adjust as you go. Bounce back from disappointments.

What’s one thing you would change about the company if you could?
To many decisions are now made at a very high level in our organization, this takes away
speed and tends to demoralize mid-level leaders that should be making the decisions. We
need to let our leaders lead and not wait for approval above.
What causes conflict, and how is conflict resolved?
Number one cause of conflict is due to lack of goal alignment across the organization.
Some functions are siloed and their goals not aligned with the enterprise’s goals. If they
are measured and rewarded on these conflicting goals this causes conflict. Typically, you
need to move up the organization to resolve these conflicts, many times up to a VP or
president level.
How would you describe “organizational politics” at the company?
All corporations have organizational politics which lead to power struggles. Honeywell
isn’t any different than most companies, you just need to know how to navigate through
these.
How are decisions made when there’s disagreement and stakes are high?
Decisions around disagreements are typically made at an enterprise VP level. If
Functional VP leaders aren’t aligned this could have to move up to a president level, but
not often.
When and how do people like to give and receive feedback?
 Honeywell leaders welcome frank discussion and feedback, especially around new
growth ideas. These are best shared in a joint meeting setting to open the discussion up
for everyone at all levels within the org.
Titles aside, who in the organization has the power to gets things done?
As mentioned early, too many decisions are made at a very high level in the org. This
doesn’t prevent leaders that understand how to navigate through the org to be successful
in making progress w/o excessive oversight.
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Traxler, William. Personal Interview. 27 March 2018