Introduction

Introduction

• SMA and MEPD background

• Overview of SMA operations

• MEPD – Micro Electronic Products Division» Various functional departments» Multi divisional structure» Segregated departments» Jacob Amman & Guido Spichty» Organizational culture

Comparison of the Leaders

• Authoritarian

• Deep and Powerful Influence

• Entrepreneur

• Technical Expertise

• Capacity to grasp problem

• Dominating in meetings

• Experimental/Innovator

• Risk taker

• Highly Involved

• Bad listener

• Not a risk taker

• Less involved

• Political and Manipulative

• 14-steps ahead

• Became more authoritarian

• Remain Political

• Conflicts

• Lack of cooperation

• More of Bureaucratic Approach

• Few group Meetings

• Centralized Decision making

• Multi-Divisional

• More Group Meetings

• Decentralization within Centralization

• Zwingli Corporation

• Organizational Development Plan

• Higher Sales ratio

• Sales and Marketing

• Change of Headquarter

• Product development Group

• Sales starts decreasing

Problems Identified

• Decline in sales and profit

• General economy and competition

• Low Morale

• Conflict and lack of coordination

• Major Promotions from manufacturing

• Change of direction

• Weakening of demand

• Spichty’s failed projects

• Political and manipulative staff

• Unrealistic Commitments

• No cohesion in top management

• Discontinuation of a good program

• Spichty, a bad listener

• Does not push people towards goals

• Not a risk taker

• Gave rise to centralization

• Replaced all key managers

• Took to many responsibilities

• Modification of budget proposals

• Unattainable goals

• market intelligence and selling

• Non-commission based selling

Departmental Conflicts

• Manufacturing Dept Vs Sales Dept

• Manufacturing Dept Vs Marketing Dept

• Manufacturing Dept Vs Product Development Dept

Solutions

Product Development

Changes in the Marketing Department: The marketing manager Other employees

Human Resource Department

Goals and processes

Improving the Service of Grenzach

Replacing Spichty

Why Replace Spichty?

Lack of experience

Lack of leadership qualities

Lack of involvement in problems

Did not take suggestions or criticism

No importance of technical innovation

Appointment of the Marketing Manager

Movement towards Centralization

After re-structuring

• Present structure – A multidivisional organization– MPED’s functional departments

• Decentralization– Product development and Technical staff

division

• Decentralization within Centralization– Top management taking all decisions

Proposed changes:

• Move towards more decentralization– Each product should have its own departments– Frontline be delegated authority

• Lyon Plant be closed– Reduction in costs

• Spichty be replaced