In: Operations Management
Please read the "Something's Rotten In Hondo" case at the bottom
Directional Communication (Downward, Upward & Horizontal) -Resendez
1. Using the HONDO case, you will assume the role of the character of George Mackee for the purpose of writing both of the letters.
2. Write a DOWNWARD letter to your employees regarding the actions, decisions, consequences of your decision and how it affects them personally. Make sure to convey your decision.
3. Be thorough in your letters. Include details; be vigilant with spelling, punctuation, grammar, etc. Use Times New Roman, 12 point font, and 1 inch margins.
This case was written by Geoffrey P. Lantos, Stonehill College. Permission to reprint granted by Arthur Anderson & Co. SC. p. 842
Something’s Rotten in Hondo
George Mackee thought of himself as bright, energetic and with lots of potential. “So why is this happening to me?” he thought. George, with his wife, Mary and his two children, had moved to Hondo, Texas, from El Paso four years earlier and was now the manager of the Ardnak Plastics plant in Hondo, a small plant that manufactured plastic parts for small equipment. The plant employed several hundred workers, which was a substantial portion of the population of Hondo. Ardnak Plastics Inc, had several other small plants the size of Hondo’s. George had a good relationship with Bill, his boss, in Austin, Texas.
THE EMISSIONS PROBLEM
One of the problems George’s plant had was that the smokestack emissions were consistently above EPA guidelines. Several months ago, George got a call from Bill stating that the EPA had contacted him about the problem and fines would be levied. George admitted the situation was a continual problem, but because headquarters would not invest in new smokestack scrubbers, he didn’t know what to do. Bill replied by saying that margins were at their limits and there was no money for new scrubbers. Besides, Bill commented, other plants were in worse shape than his and they were passing EPA standards.
A QUESTIONABLE SOLUTION
George ended the conversation by assuring Bill that he would look into the matter. He immediately started calling his contemporaries at other Ardnak plants. He found they were scheduling their heavy emissions work at night so that during the day, when the EPA took their sporadic readings, they were within standards. George contemplated this option, even though it would result in increasing air contamination levels.
THE DOUBLE BIND
A month went by, and George still had not found a solution. The phone rang; it was Bill. Bill expressed his displeasure with the new fines for the month and reminded George that there were very few jobs out in the industry. That’s when Bill dropped the whole thing into George’s lap. Bill had been speaking to the Mexican government and had received assurances that no such clean air restrictions would be imposed on Ardnak if they relocated 15 miles south of Hondo in Mexico. However, Ardnak must hire Mexican workers. Bill explained that the reason for relocating would be to eliminate the EPA problems. Bill told George he had one week to decide whether to eliminate the fines by correcting the current problems or by relocating. George knew that relocating the plant on the Mexican side would devastate the infrastructure of the city of Hondo and would continue to put contaminants into the air on the U.S. side. When he mentioned the possibility to Mary, she reinforced other concerns. She did not want him to be responsible for the loss of jobs of their friends and extended families.
Answer :
1. UPWARD letter to Bill regarding my decision:
3 July 2019
To,
Mr. Bill
Sr. Manager,
Ardnak Plastics Inc.
Austin, Texas
Subject: My suggestion for eliminating the EPA problems.
Sir,
I have been working on analysing the problem of smokestack emissions and clean air restrictions of EPA in Hondo, Texas plant. I would like to present few facts for your kind consideration:
· If we relocate to 15 miles south of Hondo in Mexico than the condition of hiring Mexican workers will be imposed.
· The current plant at Hondo employs several hundred workers, which compose a substantial portion of the population of Hondo.
· By relocating the plant, the workers of Hondo might get unemployed.
· Relocation will not solve the problem of air contamination as it will continue to put contaminants into the air on the U.S. side.
· Relocation would add to the cost of company.
Keeping these facts in light, my suggestion will be to eliminate the fines by correcting the current problems. In my opinion to solve this identified and continuous problem the best solution is to request headquarters to invest in new smokestack scrubbers. This will serve two purposes i.e. Solve EPA problem, Save company from disturbance that will be caused by relocation, will save environment, save cost of hiring and training Mexican employees and will not lead to infrastructure destruction in Hondo.
However, I understand that the final decision will be taken by management. Still I believe that instead of relocation investing in new smokestack scrubbers will be the more beneficial decision.
Yours faithfully,
George Mackee,
Manager,
Ardnak Plastics Inc,
Hondo, Texas.
2. HORIZONTAL letter to your contemporaries:
3 July 2019
To,
Manager,
XYZ Company,
Hondo, Texas
Subject: Request for providing desired information.
Dear,
Working on same platform we all are aware about the smokestack emissions from our plants. Apart from EPA guidelines we all understand the need of solving this problem to protect our environment.
I request you to share the information mentioned bellow for analysing the depth of this problem and determining the best possible solution:
· sporadic readings of past 3 months,
· procedures followed for releasing the somke,
· Schedule of conducting heavy emissions work.
· Number of workers.
I hope you all understand the problem is deep rooted and must all join hands in order to eradicate this. I request your support to share this information.
Yours faithfully,
George Mackee,
Manager,
Ardnak Plastics Inc,
Hondo, Texas.
3. DOWNWARD letter to my employees regarding the actions, decisions, consequences of my decision and how it affects them personally. Make sure to convey your decision: