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COMM $292$ Case study $-$ Winter semester $2024$

Northern Technology

Topics included in this case study:

Organizational structure

Leadership

Organizational change and innovation

Decision$-$making

Organizational culture

Communication

Organizational goals

Motivation

Introduction

When Alejandro Martinez took over at Northern Technology, he replaced the man who had founded the company $35$ years ago and had been its only CEO. Martinez brought with him $30$ years' experience working for a manufacturing company that prided itself on its strong "management culture", where managers were expected to measure all aspects of employee performance and give feedback continuously on whether employees were living up to expectations of their performance. That culture had done well for his previous employer, leading to years of innovation and high profits, even during economic downturns.

Three years later, however, Northern Technology's board of directors fired Martinez. The company was limping along with poor financial results, and employee turnover had reached a new high, increasing every year that Martinez was in charge. Employees showed little motivation to do a good job, they expressed little loyalty to the company, and productivity was at an all$-$time low. The board hired Suzie Chan to replace Martinez and pick up the pieces. She wondered what she might do to turn the situation around.

Background

Northern Technology is the second$-$largest retailer of consumer electronics, personal computers, entertainment software, and major appliances in North America. In addition to its head office in the central United States, the company has $1,400$ stores across the United States and Canada, a website offering most of its products online, and