Discuss how leadership styles, management styles, and types of power might affect the success of an organization. The following once stable organization (RST) has recently reversed direction and is now struggling to survive. Students are being asked to review some of the organization’s data from the past several years and recommend some changes that might reverse the negative trends in the metrics provided in the Excel spreadsheet.HistoryRST Carports was founded in 1980 as a private Midwest small business company. The business includes a 600,000 square foot building with office space to support its management. The business is in Albany Indiana and initially produced and installed 4 versions of carports which was gradually increased to 48 versions over the years. In 2000, the business ventured into the metal roofing business and began manufacturing and installing 18 varieties of metal roofing from the same facility in Albany. The company was profitable every year from 1981-2017, only losing money in its initial year of existence. The company used a pull system to control inventory, used the Seven Quality Tools and Seven Management Tools to solve 90% of their problems, and used Six-Sigma and Shainin Red -X Problem Solving to solve their complex problems. All of the Executive Managers were Six Sigma Blackbelts certified by ASQ.In July 2017, Jerry Jones, the President, and private owner of the very successful business sold the company to WXY Corporation, a large competitor, for $60.8M. WXY elected a new Divisional Manager from its corporate office, Art Anderson, to replace Jerry Jones
the week after the sale. Anderson immediately brought in a WXY SWOT team to make a one-month assessment of the RST management and working employees and to review its methods of operation.Structure ChangesOne month after the sale, Art Anderson elected to change the RST management structure, reducing over 50% of the executive management positions, approximately 40% of the middle and lower level manager positions, and 30% of the employees who performed the manufacturing and installation work. All management employees were forced to take a 20% reduction in pay, and working employees were forced to take a 10% reduction. Many of the original RST executive management team elected to retire immediately. Gone were CFO- Dan Demis, Operations Manager- Larry Lange, Engineering Manager- Andy Andrews, Maintenance Manager- Bob Bex, and Materials Manager- Carl Candle. The Quality Manager, Earl Engle, quit shortly after the takeover and moved on to a competitor for a higher-paying job.The CFO and HR Manager positions were consolidated into one position. The CFO manager retired, and the HR Manager quit. The Materials Manager and Purchasing Manager positions were also consolidated; the Materials Manager retired, and the Purchasing Manager quit. The Engineering Manager and Maintenance Manager positions were also consolidated, and both managers retired. The IT Managers position was eliminated, and that service was transferred to Corporate office at WXY. The Information Technology Manager was offered a lower paying job at Corporate, and elected to quit. Anderson acquired replacements from Corporate office.