Steele Enterprises

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Case 101 Steele Enterprises


The PR Dinner


Gene Robertson, Public Relations Director, Steele Enterprises, knew there were troubles as soon as he saw the room. Instead of bars set up with shiny glasses and fine liqueurs, and staffed by impeccably dressed bartenders, there was chaos. Tables of hors d’ oeuvres were there, but no semblance of order. Flowers delivered but not in place, cocktail tables and other furniture still stacked. Within one hour and a half, 50 marketing representatives and buyers---ambassadors for 0 of the primary marketing outlets to which Steele Enterprises sold most of its goods�would be arriving. Nearby Richard Leeman (Chemical, Public Relations Chief) and Donna Olson (Mechanical, Public Relations Chief) were arguing�really going at it. Gene hurried over to intervene.


Though the two continued to argue as Gene tried to appraise the situation. Richard stated that Donna exceeded the budget by $4000. Donna stated that she was told to get the best for this party; she stated that she told the catering manager to stay within the $1,000 figure, with labor extra. She stated that when Richard showed up, he started nosing around, asking questions, giving orders, and now he has all things fouled up.


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Gene then decided to give the PR staff their assignment in clear, concise language, with no room for augments. He haggled the catering company (costing him $00 under the table) to cut the cost down to within $,000 of the original estimate tab.


The Aftermath


The next day Gene came in the office concerned about the situation at the PR Dinner. Gene realized that he had to do something about the constant fighting between Richard and Donna. He was going to have to get rid of somebody. Gene relied on his secretary Doris to see if this information was given the JoAnn Stone (Alfred Gamble’s secretary), Doris stated that she had not heard anything concerning the bickering between Richard and Donna.


The Problem


Later that afternoon, Gene began to assess the problem within the branches. He began questioning himself concerning


· The needs of having that many people in the branches.


· The fighting between the two branches.


· The chemical/mechanical split suggest by Mr. Gamble, it’s not working.


· Reviewing of the backgrounds of the respective leaders.


· The technical breakdown, we’re not definite enough about which branch should work with which companies.


· Why did Richard come roaring in on Donna, when I made it clear that Donna and her staff were to run the show?


· Seven cases of Richard and Donna fighting in the last 6 months.


Maybe I should trade one of them to Bob Lyons at the central region office at St. Louis, he mused, and he still felt that he was, somehow, responsible for the conflict.


I. Macro


a. The problems between Richard and Donna have been going on for months without being confronted. They’ve had seven arguments within the last six months. Gene is concerned that the people working under Richard and Donna may get involved and will bring morale down, affecting the company.


b. Alfred Gamble has made a remark about the competition in the PR business, leaving Gene to believe that he needs to take control of the situation of he may face some bad circumstances. Gene realizes he needs to get this situation worked out and under control, but he’s been reluctant to confront it.


Micro


a. Gene needs to confront Richard. Richard needs to be told that it’s inappropriate to step in and try to take over Donna’s budget and assignments. Richard needs to be reminded on what his job responsibilities are and are not.


b. Gene needs to advise Donna on how to stick to a closer budget.


II. Causes


a. Gene has never confronted the arguments that Richard and Donna have had. Gene admitted to his secretary that Richard and Donna have had seven fights within the past six months over projects.


b. Instead of confronting the situation, Gene has come to expect his secretary to keep her eyes and ears open for him on what’s coming down from Mr. Gamble. Gene needs to take some action and confront all of the situations himself instead of relying on other people.


c. By not confronting Richard or Donna on their behavior, Gene’s enabling them so the problems will continue. It’s come to the point that Gene’s concerned about the morale of the whole staff, as well as his own job security.


III. Systems Affected


1. Structural


Who is in charge? It seems there is not a clear understanding of responsibility.


Gene is limited in corrective actions he can take because it has been mandated for there to be two departments.


. Psychosocial


The director, Gene, is feeling insecure which will interfere with his decision making process.


Those who work for Richard and Donna may feel an obligation to develop antagonistic attitudes with each other in support of their chiefs.


. Technical


The party was financially mismanaged and almost a failure as a Public Relations event.


4. Managerial


It seems that his two chiefs, Richard and Donna, do not respect Gene’s authority.


Richard is trying to enforce authority that is not his.


Donna over spent on the P.R. event and Richard is trying to enforce authority that is not his.


5. Goals


It is hard to present a positive picture about a company when the atmosphere is negative. The company can begin by defining individual responsibility and authority for both branches.


IV. Alternatives


1. The first alternative would be to work with human resources surrounding the argumentative problems between Richard and Donna. Make sure that each manager is working towards the company vision and a common culture. Gene must enforce these policies.


. Again use human resource to investigate the problems between Richard and Donna. Judging from Gene’s description, the problem must be a personality conflict or the distribution of power between the two managers. If each manager has equality in the hierarchy, then Gene may need to ensure that project direction and leadership is in writing so that there is no misunderstanding of who is leading each project.


. If Gene does not want to lose either of his managers, then he may need to draft a document outlining the responsibilities of Richard and Donna. It appears that both want absolute control, and with no division of responsibility it will be impossible to maintain order.


4. Gene should assess his own position. If he recognizes that his secretary is good because her ears are open and her mouth is shut, then we would question his ethics. Further, if he is playing “referee” to his immediate subordinates, then Gene should be questioning his own managerial abilities.


V. Recommendations


To incorporate several of the alternatives, we feel that Gene should first discuss the issues with the human resource department and decide what course of action should be taken in this type of situation. There can be morale and legal ramifications if the proper channels are not followed while pursuing change. Once human resource is involved, a performance assessment for both Richard and Donna should be conducted to evaluate the strengths and weaknesses of each employee. Gene should draft a policy outlining the separation of powers and responsibilities of each employee.


Next, both Richard and Donna should be confronted individually and together so that everyone understands the importance of working towards a common goal. Further, they must understand that the new policy must be followed for the common good of company and their employees. We would also recommend that Gene stress in his policy that any further confrontation will result in disciplinary action.


If Gene expects for the current performance to continue in the long term, then we recommend that he confront the personnel problems immediately to avoid a more serious occurrence.








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