Jared Farnsworth

Dick Spencer Case Analysis

BA 585
10/6/2014

Introduction:
Dick Spencer is a plant manager for the Modrow Company, a Canadian branch of
Tri-American Company. He started his career as a salesman in the company and
continued to work successfully on different contracts and finally was spoken of as the
boy to watch in the company. Later he wanted to move on from salesman to a different
career domain, so he was finally transferred to the home office of the organization to
work as a special assistant to the senior vice president of productions. While working for
the vice president of production his primary job was troubleshooter, this meant that
Dick was involved in making calculated decisions to save the company money. During
this time he went from an easy going and good-natured person, to what was described
as a cold and calculated cold-hearted person. Upper management praised him for
approaching his job in this manner. After a few years as the special assistant to the vice
president of production Dick was promoted to a plant in England as the assistant plant
manager. He was not well liked when he first arrived. The management that was already
in place had many reservations about Dick and his approach to management. After a
frustrating time as the assistant plant manager in Birmingham, England he was made
plant manager of the old British company that was purchased by Tri-American in
London. As the plant manager he approached this job much like he did as
troubleshooter, everything was cold and calculated, but he produced a profit for this
part of the company for the first time in many years. Dick was then granted a transfer
back to North America when he was named manager of the Modrow Company, and
junior vice-president of the Tri-American Company.

Jared Farnsworth
Dick Spencer Case Analysis
BA 585
10/6/2014
Managerial Issues:

There are several managerial issues that inhibit Dick Spencer from becoming a
great manager. The first issue is micromanagement. According to the dictionary
micromanagement is someone who oversees a business or project and controls with
excessive attention to minor details (dictionary.com). Micromanagement generally has a
negative connotation in every aspect of life. Rather than give general instructions on
small tasks and oversee larger operations, the micromanager monitors every aspect of the
business process and avoids delegating the decisions to the best candidate. According to
the article by Sal Marino, he described micromanagers as someone who read your
proposals, tell you to develop your prototype, and then insist on telling you how to do it
(Marino, 1998). He also stated micromanagers see all things in black and white. They
manage by the numbers and anything in red turns them into raging bulls (Marino, 1998).
Dick would walk around the department of the company and try to watch what the
employees were doing at all times. This developed a negative impact on the employees.
Dick was guilty of management by walking around. This could be beneficial, but if done
incorrectly as Dick proceeded to do, it will actually have the reverse effect and have a
negative impact on work. He was the typical micromanager, he spent more time
administering the projects done by the employees and trying to direct all aspects of the
project, as he seemed to think that the employees needed to be directed at all times. The
siding department incident is one example of Dicks micromanagement mentality. In this
incident Dick wanted to concentrate on cost reduction for the company, he picked up the
strips of left over aluminum and bent them and placed them in the recycle drum. After he
reassured himself that this was possible and would save more time than what the

Jared Farnsworth
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Dick Spencer Case Analysis
BA 585
10/6/2014
employees were doing, he walked over to the employee at the cutting saw and asked why
they were using the saws to cut the left over material when it could be bent faster, saving
time and money. The worker responded, Weve never done it that way sir. Weve
always cut it.
Micromanagers rarely see themselves as micromanagers, but it is easily
recognizable to the employees of micromanagers. Marino stated that micromanagers
they prefer to control results rather than inspire creativity (Marino, 1998).
Micromanagers believe the saying if you want something done right, you have got to do
it yourself. There are extreme instances of micromanagement like excessive attention to
detail, planning tasks to minute details, and obsessively tracking time employees spend
other than on a task as hand. Although Dick did not see himself as possessing all of these
extreme aspects the employees could perceive his walking around as him checking on
them at all times. One employee even made the statement the he should return to his
office where he belongs.
Another issue is low morale. Features of low morale are greater grievances and
conflicts in the organization; high rate of employee absenteeism and turnover;
dissatisfaction with the superiors and employers; poor working conditions; employee
frustrations; decreased productivity; and lack of motivation to name a few. Maintaining
morale should be an important aspect for any organization. The higher the morale the
better the production from satisfied employees and less work hours lost to unsatisfied
employees taking unscheduled days off. Low morale can reduce productivity, harm
relationships with customers and clients as well as employees, and it will ultimately

Jared Farnsworth
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Dick Spencer Case Analysis
BA 585
10/6/2014
destroy the companys bottom line. Low morale can cause additional expenses, by having
a higher employee turnover and having a drop in production.
Dick was killing the morale in the company, though he did not realize it. By
walking around and checking on all aspects of production he was making the employees
feel as they were being held under a microscope and that their work was being
scrutinized in the details. He also implemented many changes in the employee routines
when he took over as manager. With new machinery installation to increase production,
many employees had to learn new ways to work and how to troubleshoot the new
machines.
Most organizations will try to move quickly to fix a low morale problem before it
becomes out of control. For the most part it will be the managers and senior staff that
implement the strategies to fix the problems. Dicks constant observation of what was
happening on the production floor and lack of trust and communication with the
managers put them in the position to go against what he wanted rather than helping him
get the best production from his employees.
At the time the Modrow building program had been completed, it was behind
schedule. New equipment had also been installed and some revamped cost procedures
had been incorporated for Dick to try to get the company back in the black. Leaders like
Dick spend their time, resources and energy seeking out the best and brightest employees
that can be found in the job market, however once they are incorporated into the company
the managers do not always bring out the best of what they have to offer. Instead they
remain at the status quo, when in reality these employees have far more potential than the
effort they are putting out. Ngambi said, unchallenging environments with little or no

Jared Farnsworth
Dick Spencer Case Analysis
BA 585
10/6/2014
opportunities for professional growth and advancement often lead to low employee

moral (Ngambi, 2006).

Shuler stated, most people who experience low morale in the work environment
blame the leadership or their immediate supervisor (Shuler, 2004). Dick did not clearly
define what was expected out of his leadership team, this led to a drop in morale around
the job site. Leadership competencies that can contribute to morale issues in employees if
lacking include communicating vision, energizing staff, building trust and loyalty, and
developing the team. Leadership related competencies could be addressed through
servant leadership. Dick could have handled the siding incident a little better with servant
leadership that he did by telling the manager do it my way or I will force you to do it my
way.
The last issue is resistance to change. Its a natural reaction from employees to
resist change when something new is implemented. For many people change produces
anxiety and uncertainty. In an article done by Batch he stated, todays research indicates
that between 30% and 60% of all change initiatives within the organizations fail (Batch,
2013). He later stated some researchers report even more pessimistic results, suggesting
rates of change failure at 80% to 90% (Batch, 2013). Many employees lose their sense
of security when change is implemented. The range of reactions when change is
implemented is immense and unpredictable. Many people will just go with the flow and
do what is asked of them with no questions, others will go completely opposite just for
spite or to see how management will handle them and their resistance.
Resistance is a natural part of the change process and is expected. It is assumed
that resistance to change impedes the development of successful change strategies

Jared Farnsworth
Dick Spencer Case Analysis
BA 585
10/6/2014
(Gilley, 2009). The success of change management depends upon the organizational

structure, availability of resources, vision and mission of the organization, and

employees willingness to work towards the change-related goals (Brisson-Banksm
2010). Batch stated managers who ignore these elements guarantee themselves an uphill battle with employees if not absolute failure (Batch, 2013).
The siding incident is a great example of resistance to change. Dick took away the
saws the employees were using to cut the scrap metal and instead of bending them like he
wanted they started using hand sheers to cut the scrap metal. Dick should have asked the
foreman or manager to explain why their method was more effective and explain any
concerns with the methods he wanted to implement. If the manager or foreman was not
able to determine the effectiveness of the alternative method, then he should have been
given the opportunity to implement a trial period to test the alternative methods. This
would allow the manager to take ownership of the new method of the change process and
Dick may be surprised to learn that there is a better way than his. With minimal
resistance, Dick is able to foster needed change with the support of the employees that it
affects. In return his employees feel valued in the organization and that they contributed
to the success of the modernization and expansion of the plant.
There are several steps that managers like Dick can take in the future to minimize
the resistance to change such as creating the proper attitude, effective communication,
setting a good example, accepting the opinion of employees, and rewarding the
acceptance to change. If Dick would have educated the foreman about the change
process, the foreman could have grasped the understanding for the change and then
participation in the action plan to implement the change. This gives the foreman personal

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Dick Spencer Case Analysis
BA 585
10/6/2014
responsibility in the action plan in which to assume ownership for the change as well as
fostering alternative ways of thinking. Resistance to change has generally been a result of
personal experience and assessments about the reliability of others. Attempts are made to
alter these factors in order to win their support and overcome resistance. However, this
understanding ignores resistance as a socially constructed reality in which people are
responding more to the conversations that go on behind the managers back than to the
change itself. It is a function of the ongoing conversations that are being spoken and
which create the context for both the change initiative and the responses to it. In this
context, resistance is not a personal phenomenon, but a social systematic one in which the
resistance is maintained by the conversations that happen in the background of the
organization. This is more like a coup or social uprising and results in more change
failure.
Recommendations:
The following strategies may be recommended to the Modrow organization to
overcome the mistakes, misunderstandings, confusions and administrative failures of the
plant. The major reason for the failure was lack of managing the stress at the right time,
which could have otherwise avoided mistakes and problems. Improving morale, avoiding
micromanagement and overcoming resistance to change are what the company needs to
focus on.
Avoiding micromanagement will be the first one that we look at. It may assist in
understanding the reduction of micromanagement by Dick Spencer. As we have already
identified the micromanagement tendencies in Modrow, below is a list that can help
improve the situation.

Jared Farnsworth
Dick Spencer Case Analysis
BA 585
10/6/2014
*Help the boss delegate more effectively by prompting him/her to give all the
information that is needed up front, and to set interim review points along the
way.
*Volunteer to take on work or projects that can be done confidently and
completely. This will increase confidence and delegation skills.
*Make sure that the communication progress is transferred to the boss regularly,
to discourage the seeking of information constantly in the event they have not
received feedback in awhile.
*Concentrate on helping the boss to change one micromanagement habit at a
time. He is only human and he is allowed to make mistakes as well.
Being able to work with powerful people is a critical work skill. If you can be
successful at it then you will shine, if not your career will quickly stall and end in
ultimate failure. Dick must first realize that he has a problem. First class managers like
Dick want to be involved in the activities of his staff, however he faces the inherent
difficulty in becoming overinvolved without actually doing some work personally. Once
he is involved he has entered the world of a micromanager.
For Dick to become a more effective manager he must review the staffs plans
and suggest change where appropriate. He must ask the right questions, recognize their
individual roles, and encourage a clear understanding and agreement of how these plans
will generate progress towards goals and objectives. Dick must also look at the project
complexity and the experience of the staff will determine his involvement in the
decisions. The understanding and agreement minimizes any wrongful or genuine
perception that he is micromanaging. Dick must realize that the project completion

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Dick Spencer Case Analysis
BA 585
10/6/2014
review is not solely a management function. He should involve all key team members in
the review process and results of the project. Less than wonderful results should generate
constructive feedback to discuss potential improvements for future projects.
Some of the following techniques could help improve morale around the Modrow
Company. Dick should involve employees in the decision-making process, either by
formal meeting or a suggestions box, and he should reward every valid idea. He should
share the vision, by creating vivid imagery of success at company, departmental, and
individual levels. Dick should optimize attention to positive feedback, recognition and
thank yous. He could implement formal teambuilding exercises and games as well as
involve employees in team lunch events. Dick could schedule after work social events,
athletic events, picnics, and encourage fitness and activity. He should show employees
specifically how their individual efforts positively contribute to company, department and
individual success. Dick could lead morale by example; leaders like him should be seen
enjoying their work. Dick should cross-train and sell cross training. In workplaces like
Modrow with expected growth, encourage employees to view themselves as the new
anchors for the company with visibility and opportunity. He should set the constant
example of treating others will respect and courtesy. Dick should be the person who
creates laughter and relaxation. He should consider spirited themed dress days, uplifting
postings, humor emails, or floating holidays. He should show confidence in the
companys ability to grow and prosper.
The fact is that most new employees are highly motivated to perform well when
they join a company. As the leader Dick must help the employee achieve the desired
result, develop them and take care of them. He should conduct himself in an ethical

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Dick Spencer Case Analysis
BA 585
10/6/2014
manner by ensuring that they have the needed resources on hand, he removes rather than
creates barriers, and he does not generate problems, but instead addresses and solves
existing problems that are beyond the scope of the team members, and accepts
responsibility for everything the team does and does not do.
When a basic sense of equality is established in an organization, pride in personal
accomplishments and in the accomplishments of the organization can drive employee
behavior toward high performance. Employees sense of achievement is a function of
the challenge of the work itself, the acquisition of new skills, the ability to perform well,
the perceived importance of the job, recognition for good performance, and working for a
company of which they can be proud (Sirota, 2009). Rarely does a company allocate a
sufficient budget to deal with employee morale issues. Yet there are tangible, costeffective steps for organizations to take in moving employees away from feeling like
victims or suffering what they call survivor syndrome. These steps help employees feel
more in control of their environment, so they are better able to understand why things
have changed and how the can positively impact outcomes.
One of the biggest mistakes change leaders can make is to assume that resistance
is without merit. But resisters can shed valuable insights about how proposed changes
might be modified to increase the odds for success (Michelman, 2012). Dick Spencer
needs to focus on the following efforts. His main focus should be on what is the most
harmful resistance, and where could that resistance cripple the company during the
change process. Dick should also focus on where the resistance might have spreading
power. Every firm has individuals whose influence extends well beyond their role. If

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Dick Spencer Case Analysis
BA 585
10/6/2014
these individuals are not with you they are against you and can kill your career. One way
to quell this is to get them involved in the change process at the start.
First, Dick should create a way to communicate with employees about
new initiatives and their progress. Instruct key management to provide employees with
regular updates at team meeting. Second, he should market the new business strategy to
each group. Explaining the new plan in terms that help each group understand how the
strategy will make their jobs better or easier. Everyone in the organization must
understand the goal of the new strategy. Third, Dick should invite a team member from
each functional group to participate in meetings or provide seminars for each group to
market the new business strategy. Next, he should select a group of change agents from
key positions to help manage the planning and implementation of the strategy. He should
find one person amongst those chosen to be the vocal leader. He should try to select one
not in a managerial role. Fifth, Dick should develop key reports or outputs for each
department, organization, and person involved in the new strategy. Each group head must
tailor the report to the goals of the group. An example of this would be one group wants
to increase sales by 4 percent or another could want to lower costs by 6 percent. Lastly,
Dick needs to create at least four key milestones and goals to measure success throughout
the year. Report the performance regularly and publicly reward those people or groups
that meet the goals that are set forth.
Conclusion:
Leaders may have concerns for the future of the organization with the impact of
technology and global changes. Through transformational leadership, Dick can create
and communicate a vision for the Modrow Company in order to lead his employees,

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Dick Spencer Case Analysis
BA 585
10/6/2014
challenge the status quo, encourage a culture that embraces change, and improve overall
morale by inspiring his employees to focus on achieving results. Dick must encourage his
division managers to prepare daily reports that must be presented in morning meetings
the following day along with monthly, weekly, quarterly, semi-annual, and annual
reports. These reports discuss the requirements, performance, and levels of productivity,
challenges, strengths and weaknesses of their perspective divisions.

Jared Farnsworth
Dick Spencer Case Analysis
BA 585
10/6/2014

13

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BA 585
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