This case study highlights about the analysis of the problems, background, theories, and action plans. Before exploring Tucker Company, it is necessary to know the background including its past and present. It will be discussed further about the problems in Tucker Company that occurred when it reorganizing its company into 3 new divisions. The 3 new divisions are also known as 3 new product lines of Tucker Company. In the following point, it draws the relation among those problems with some management’s theories. In the end of this report, it will also be provided what the company should do to solve those problems.
II)Case background Tucker Company carried out an extensive restructuring I 1978 which divide the company into three major product lines and will lead by a new vice – president and he will report to Mr. Harnett, the CEO of Tucker Company. The new product lines were commercial jet engines, military jet engines and utility turbines. Each division would have their departments such as manufacturing, engineering and accounting department. There was a old laboratory which continue support the three main division after the reorganization. Mr Hodge was the new manager of the laboratory manager in 1988.
He focused more on his own advancement more than the company’s development. Few months later, several conflicts occurred in his laboratory and he was the main reason which caused this conflicts. Argument happened between Mr. Hodge and Mr. Franklin, the manager of engineering department over the implementation of the results and the time of handling his request taking a longer time under his management. The arguments between Mr. Hodge and Mr. Franklin occur successively and caused one of the Mr. Franklin’s projects failed. III) Problem analysis
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Problem that occurred in Tucker Company is conflict while the progressing of Tucker Company’s reorganization its company into 3 principle product lines. It was about personal conflict between Hodge and Franklin who disagreed over the implementation of the materials. Even though it was personal problem, it could affect all aspects of the company and it might become a crucial matter. The engineer of the utility turbine division, Mr. Franklin, wanted his department to be in charge in final decision of the materials. Meanwhile, Mr. Hodge, the new laboratory manager, as the replacement of the previous laboratory manager which was Mr.
Garfield. Mr. Hodge stated that he is a metallurgist. Thus, the final decision should be on him. Unlike Mr. Garfield, from the point of view of Mr. Hodge’s peers, he was more interested in his own advancement rather than company’s advancement. IV)a)Theories Management theory – divisional structure Divisional structure can be defined as a structure which usually consists of several parallel teams focusing on a single product or service line. Tucker Company applies this divisional structure and divides into 3 product lines which were commercial jet engines, military jet engines and utility turbines.
There were some advantages and disadvantages of this divisional structure. i)Advantage The advantage of using divisional structure was that every team or group will be focused on a single product and supported by a leadership structure. The manager has to divide the workers with same abilities and talents into a same group and focus on the product which they were expertise in. Through this method, the company will become more effective and will have higher productivity. Furthermore, due to the division, it is easier for manager to measure their performance.
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Another advantage by applying this divisional structure will be each product lines were self sufficient and flexible. The divisional structure was designed so each teams or groups were self-sufficient which means each group will have its own department. For instance, in Tucker Company, 3 new product lines will have its own department such as engineering department, manufacturing department and accounting department and these groups will operate separately so that these groups can focused on a particular goal. ii)Disadvantage On the other hand, the disadvantage for this divisional structure was the cost of operations was usually very high.
In Tucker Company, each products line will have their departments and each department needed its own resources and these will increase the cost of operations. In addition, each product lines will have 1 divisional head and conflicts between divisional heads will occurred when every divisional heads wants to show their supremacy. Company could not operate well if every divisional heads would not cooperate well and could not meet the company’s goals and objective. b)Theory of scarcity First of all, scarcity means unlimited wants and limited resources and it was impossible for a company to meet all goals at the same time.
Same problem happened in Tucker Company. Tucker Company has 3 products lines but only 1 laboratory. It was simply means that the company has scarce resources which refer to the laboratory. 3 departments are using 1 laboratory at the laboratory cannot used by three departments at the same time. So they have to choose which departments have to use first and other department shave to give up using it. Argument between departments will eventually occurred and these argument only can be solved or minimize by maximized the resources.
