Issues and Discussion Questions
1.What kinds of products and technologies does Benson Metals use? How have these been changing recently?
Benson Metals, a medium-sized maker of specialty steel products, has traditionally used a craftsliketechnology to produce a variety of metals. In terms of Perrow’s model of technology, task variety andtask analyzability are low, as there is still guesswork, skill, and even some “black magic” inmanufacturing products. Benson also produces metals in very small quantities—pounds not tons—so thatin terms of Woodward’s model it is small batch, and the skills and knowledge of production people aremore important than machines in getting the job done—task complexity is low.Recently, the company has moved …show more content…
Stockwell says something can be done but fails to provide an accurate timeframe, making planning difficult for sales and other departments—making them dependent on Ramrod.Ramrod is a “rough diamond” and has little social contact with other top managers at Benson Metals,which further isolates him. Managers have suggested sensitivity training to help him better communicateand delegate.The conclusion is that Ramrod is the problem—his attitudes and values. What is the solution? FireRamrod? After the pros and cons have been considered (the firm would lose his valuable skills andexpertise), the instructor can turn the discussion to the issue of the company power structure; studentsrarely raise this issue.
4.In the past, which function has had the most power in Benson Metals? How has the power relationship between production and sales been changing recently?
Traditionally, sales has enjoyed most of the power:
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President Tom Hollis worked with Fred Benson and was the sales director.
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Most of the “assistant to” managers groomed for promotion come from sales.
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Sales gets the credit for good work while production is blamed in the bad years.
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Sales can slip orders into the production process, although, as in the Continental Can case,this causes significant problems that will increase as the sophistication of the metalsincreases.
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Production managers play second fiddle to salespeople: They have inferior facilities andlimited