In 1978 the Tucker Company underwent an extensive reorganization that divided the company
into three major divisions. These new divisions represented Tucker’s three principal product
lines. Mr. Harnett, Tucker’s president, explained the basis for the new organization in a memo to
the board of directors as follows:
The diversity of our products requires that we reorganize along our major product lines. Toward this end I
have established three new divisions: commercial jet engines, military jet engines, and utility turbines.
Each division will be headed by a new vice president who will report directly to me. I believe that this new
approach will enhance our performance through the commitment of individual managers. It should also
help us to identify unprofitable areas where the special attention of management may be required.
For the most part, each division will be able to operate independently. That is, each will have its own
engineering, manufacturing, accounting departments, etc. in some cases, however, it will be necessary for a
division to utilize the services of other divisions or departments. This is necessary because the complete
servicing with individual divisional staffs would result in unjustifiable additional staffing and facilities.
The old companywide laboratory was one such service department. Functionally, it continued to
support all of the major divisions. Administratively, however, the manager of the laboratory
reported to the manager of manufacturing in the military jet engine division.
From the time the new organization was initiated until February 1988, when the laboratory
manager Mr. Garfield retired, there was little evidence of interdepartmental or interdivisional
conflict. His replacement, Mr. Hodge, unlike Mr. Garfield, was always eager to gain the
attention of management. Many of Hodge’s peers perceived him as an empire builder who was
interested in his own advancement rather than the company’s well-being. After about six months
in the new position, Hodge became involved in several interdepartmental conflicts over work that
was being conducted in his laboratory.
Historically, the engineering department had used the laboratory as a testing facility to determine
the properties of materials selected by the design engineers. Hodge felt that the laboratory
should be more involved in the selection of these materials and in the design of experiments and
subsequent evaluations of the experimental data. Hodge discussed this with Mr. Franklin of the
engineering department of the utility turbine division. Franklin offered to consult with Hodge
but stated that the final responsibility for the selection of materials was charged to his department.
In the months that followed, Hodge and Franklin had several disagreements over the
implementation of the results. Franklin told Hodge that, because of his position at the testing lab,
he was unable to appreciate the detailed design considerations that affected the final decision on
materials selection. Hodge claimed that Franklin lacked the materials expertise that he, as a
metallurgist, had.
Franklin also noted that the handling of his requests, which had been prompt under Garfield’s
management, was taking longer and longer under Hodge’s management. Hodge explained that