Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Case Study
The company decided to move its engineering center to another location, since it
was running out of space. The new location was to be modern and had been planned as a
show-piece for the company. Management felt certain that the employees would welcome
the move. Negotiations were started with several local governmental authorities for suitable
accommodations.
To keep the workforce fully informed, it was agreed that the employees would be told
that a move was to be made, but that as yet no site had been chosen.
This communication let to wide speculations among the engineers as to the new site,
and various rumors circulated. Some engineers with families decided to look for alternative
employment elsewhere, fearing that the new location would not be within commuting
distance. Morale fell and productivity suffered.
Negotiation took longer than anticipated, and no suitable location had been found
after 6 months. By then morale was so low that the company decided to abandon its
relocation plan altogether. To overcome the space problem, the company split the
engineering group by putting a smaller team into another factory site nearby.
1. What went wrong?
2. How would you have handled this case differently?
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