Getting Things Under Control? After a month or so of orientation and break-in, Randle was regularly given assignments by his boss, Peter Gilmore. For example, one major assignment Pe- ter gave to Randle involved proposed price changes in Republic's line of life in- surance policies. These policies were a major income producer for Republic. Recent changes in the prices for similar products by the competition were be- ginning to put pressure on the profit margins of these products. Republic needed to maintain a strong and sound competitive posture in this sales area. This was a major, long-term study that would take about six or seven months to complete. During the period in which Gilmore was trying to hire a supervisor, he "baby- sat" the project. Once Randle was hired, Gilmore was more than happy to turn the project over to him. Gilmore would give these studies and assignments to Randle and expect them to be done. Since many of these reports were prepared for other depart- ments in the company, Gilmore did not necessarily see them once they were done. In addition, it turned out that Gilmore and Randle lived in the same part of town. Shortly after Randle was hired, he and Gilmore started commuting to gether to and from work. Gilmore felt that Randle had ample opportunity to talk with him if there were any problems or questions. There had been a series of problems in the Pricing Unit, though, not long be- fore Randle was hired. Work was not getting done properly through the unit, and at first no one knew why. Sam Benson (the head of the Strategic Manage- ment Division) finally determined that these problems had developed because requests for work were made directly to the Pricing Unit from other depart- ments. Benson issued a standing order to the other divisions in Republic that the Pricing Unit would no longer take work requests directly from other depart- ments. Instead, the requesting department had to submit their work order di- rectly either to him or to Peter Gilmore for initial approval. Randle learned of this rule very quickly. When managers approached him for work assignments, Randle told them: "I'd really like to help. But you know the rule that Sam Benson laid down. You need to discuss the project with him." During Randle's first six months on the job, everything seemed to be going fine. Gilmore would give Randle assignments and, not hearing anything to the contrary, would assume that the projects were being done. As far as Gilmore knew, all was well. CASE QUESTIONS 1. Did Gilmore need to establish any controls over the work of David Randle? Did Gilmore have adequate controls over the work? 2. What kind of control should Gilmore have estab- lished over the work of Randle and the Pricing 4.5