EXERCISE $7\mathrm{.}2$

Ralph Spears was overall project superintendent for the Makum Construction Company. He had the reputation of being a hard$-$nosed boss who demanded strict adherence to his instructions as well as to informal control methods. His promotion to project superintendent two years ago generated; considerable amount of discord in the com$-$pany. During the first nine month of his appointment, five job foremen under his jurisdiction quit the firm However, just as Eugene Hancock, the company's president, was about to remove Spears from his job, the problems subsided as the remaining job foremen and those he hired accepted Spears's style of leadership. Although Spears encouraged participation of his foremen during the planning stage of project, once he made procedure and scheduling decisions, he expected strict compliance.

During his tenure Spears reduced overall project costs by $6\%$ while meeting all time schedules for his projects. He had the reputation of running a tight and efficient operation. Because of his performance record he was made an irresistible offer with another firm and, after giving adequate notice, left the Makum Construction Com$-$pany.

Spears's departure left a gap in the firm. Eugene Hancock decided to appoint one of the firm's current foremen, Mike Nicek, as overall project superintendent. Another foreman was hired to fill Mike's position. Mike was regarded as a highly competent foreman, and he saw his new position as an opportunity to gain greater experience along with an increase in pay.

Nicek was a strong believer in management by objectives. He believed in assigning tasks in terms of objectives and leaving it up to the individual job foreman to develop the necessary procedures to accomplish the objectives. He was available for advice; however, he avoided becoming involved in every detail. After Nicek's first few months at his new position, things were not going well. Costs were above estimates and three or four projects were behind schedule. In discussing the problem with the job foremen, Eugene Hancock found that they did not believe that Nicek understood the work he was supervising. He was not acting like a supervisor: he refused to specify how goals were to be accomplished, and he held the individual foremen responsible when projects costs were high or the project was behind schedule. Therefore, the foremen were frustrated.

What, if anything, should Eugene Hancock do$?$ Write your solution in case study form. Identify the problem, propose alternative solutions, and make the argument for the solution you select.