Basic Company

Mr. James force had recently received word of his appointment as full general passenger car of the capital of Mississippi Plant, one of the old(a) established units of The Rose Company. As such, Mr. Pierce was to be responsible for the management and administration at the Jackson Plant of all functions and personnel except sales. Both top management and Mr. Pierce realized that on that point were several unique features about his new assignment. Mr. Pierce decided to assess his new situation and traffichips in the lead undertaking his assignment.He was personally acquainted with the home office executives, but had met few of the Jackson personnel. This case contains slightly of his reflections regarding the new assignment. The Rose Company conducted marketing activities throughout the United States and in certain foreign countries. These activities were order form the home office by a vice president in charge of sales. Manufacturing trading operations and certain other de b reak inments were under the supervision and control of a senior vice president.These are shown in Exhibit A. For many years the company had operated a highly centralized-functional type of manufacturing organization. There was no general manager at any plant each of the departments in a plant reported on a line basis to its functional counterpart at the home office. For instance, the industrial relations manager of a particular plant reported to the vice president in charge of industrial relations at the home office, and the plant controller to the vice president-controller, and so on.Mr. Pierce stated that in the judgement of the top management the record of the Jackson Plant had not been satisfactory for several years. The Rose board had recently approved the erection of a new plant in a different part of the city and the use of new methods of production. Lower costs of processing and a reduced manpower requisite at the new plant were