Nuon Chheang Eng - The Hexadecimal Company Case Analysis

The Hexadecimal Company recently changed its product market due to lower costs from competitors. This led to rapid growth and organizational problems. The president created an OD group to address issues, but it was not well received. There was a lack of cooperation, motivation and leadership. The OD group faced conflicts between wanting gradual versus confrontational change. Alternatives included following all committee recommendations, replacing some members, or stopping the program entirely. Recommendations were for the president to be more present and supportive, address favoritism, clarify the budget, and gain executive support.

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Nuon Chheang Eng - The Hexadecimal Company Case Analysis

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Chheang Eng Nuon

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The Hexadecimal Company Case Analysis Form

Name: NUON ChheangEng (ID: 80200190)

I. Problems
A. Macro
1) The Hexadecimal Company in recent years was forced to change their product market due to
lower labor costs by companies in competition. With this change of product came rapid growth
and systemic problems within the company. The President, John, Zoltan, decided to create an
Organizational Development (OD) group to help address change and managerial style within
the company.
2) This OD group was not accepted well within the organization and many felt as though this
group was a waste of time, energy and resources.
3) The Employees did not want to participate in the training although forced to attend, while the
training materials lack the necessary information to motivate and influence the members. Some
members left based on this change which caused a failing result.
4) There was a lack of cooperation from the members of the OD group for change and among of
them are unhappy with the current situation. George, Pete, and Bill wanted an overhaul of the
firm’s production operations along with innovative changes.
B. Micro
1) The perception of the OD group members in the organization is not correct. To bring about
any positive change the OD group must be positioned as equals to others and not "hot shots".
The organization cannot empathize with hot shots and so there is a barrier between the OD
group and the organization.
2) There are the conflicts within the group. Indar and Kay believed they needed to be accepted
first and wanted a more subtle gradual change
3) The group started out strong and with high energy but as time went by, they lost the
influence/motivation to keep going. Zoltan was less in appearance which showed on feedback
or motivation for the change or training progress.
4) Division of beliefs within the group which led to misunderstandings. Evaluation of training
program produced mixed reactions. Negative opinion about training and not wanting to make
any changes.
II. Causes
1) Company culture is not one to implement changes in such fast pace. Zoltan 's seeming favor
towards the two older members of the OD group.
2) Zoltan was not present as a leader who was supposed to motivate and lead the members. He did
not present the appropriate leadership skills to the members. He did not take the OD program
seriously which cause the cooperation level of the others a failing progress. The members obtain
a lack of respect and cooperation for Zoltan due to this absentee and appearance for the training
and change. There were ideas and changes that needed to presented to Zoltan by the members but
Zoltan was not present for them to present them which cause the motivation level and willingness
to the training program to decrease.
3) As the training continued through all levels of the organization, the OD group was collecting
organization survey data to be used in the planning the next phase of the OD program. This caused
a rift between the OD members because some wanted to hold feedback sessions and confront the
members with the data while the others wanted to gather data and feedback.
III. Systems Affected
1) Structural: Since the OD program will be placed under the human resources department, the
members will have to report to Paul Blake now, instead of being able to directly report to Zoltan.
The OD group reports to will only confuse purpose and goals.
2) Psychosocial: the OD group has caused at least as much antagonism as it has good results. The
employees had dislike towards the OD group and the training that had been developed.
3) Technical: The recent introduction of new products within the company due to competitive
companies.
4) Managerial: The OD program would be controlled by the executive committee. A central contact
person suggested by the committee would be the only one to be permitted to contact Zoltan.
5) Goals and values: The top management didn’t know or bought-in to the OD program. The goals
of the OD program would have to be subjected under the scrutiny of the human resources
department, for purposes of evaluating the budget requirements of the goals which should fit with
the budget of the firm.
IV. Alternatives
1) Follow all of the committee 's recommendations and get on with the program under the
jurisdiction of the human resources department.
2) Let Kay and Pete resign and look for people for the OD program who are compatible with the
culture of the Hexadecimal Company.
3) Follow some of the committee 's recommendations save for designating a central contact person,
and still allow all OD group members to contact Zoltan directly.
4) Stop the OD program altogether and look for another way to help the company achieve
organizational excellence.
V. Recommendations:
1) Zoltan needed to be present at all times for new ideas, changes and during the training process to
assist and motivate members. They should have a better support system from the management
team which will assist them with their success within the organization. The OD group members
needed to support each other ideas. The OD group needs to become more efficient with time
management.
2) John Zoltan should has had open door policy for all of the OD group. He seems to favor Indar
and Kay. He also should have made the decision on moving the OD group to the human resource
department. The executive to have Indar Kripalani as the central contact so bias on behalf of the
company’s manager.
3) Alternative three with central contact person and clear budget. If size of Hexadecimal allows,
make OD a separate department with its own vice president. Keep reporting to president but keep
him personally removed from specific decisions. Also, make reports to the executive committee
and gain their support. Bring several line employees into OD.