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Strategy in Operating Decisions |
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Mark Controls Corporation |
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The University of Chicago - Graduate School of Business |
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By H. Edward Wrapp |
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Page 1 2 3 4 5 6 7 |
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The Organization
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Mark Control’s corporate offices were located in Evanston, Illinois, in the same modest office building which had housed its main offices for thirty years. The corporate officers were Chairman and Chief Executive Officer, Gary MacDougal; President, Joe Casey, who also served as president of one of the larger operating units; Bill Bendix, Group Vice President; and Tom Mahick, Vice President of Finance and Secretary. An Assistant to the Chairman was responsible for planning and development. (See Exhibit I)
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People Policies
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A small booklet distributed to all employees set the tenor of relations among the people in Mark Controls:
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MANAGEMENT’S COMMITMENT TO THE EMPLOYEES
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We are all the employees of the company—from Chief Executive to the newest person in any job. To be successful we need to treat each other as partners, with every job and every person playing an important part in our company’s success. We provide every employee with an equal opportunity to succeed based upon performance and independent of race, religion, age, national origin, sex, and handicaps.
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No company is perfect and Mark Controls is not perfect. However, we are striving to create a people oriented company in which people freely contribute their talent and effort and actively share in the success of the company. In order to make our company a good place to work we support the following policies:
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We Build Our Organization Around People |
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Our company is primarily our people, working together with a common purpose. Methods, equipment, and procedures are important and we constantly strive to improve them. But the most valuable assets we have are capable and loyal people. |
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We try to assign responsibilities and duties which use fully each individual’s talents and abilities and which will enhance and extend them. All of our people regardless of their jobs, can make important contributions to our company. |
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We Do What We Promise |
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Our fellow employees and customers expect us to meet our commitments—they will not excuse us for giving less. We will always attempt to promise only which we realistically can do, and do what we promise. People must always feel that they can rely upon our word. |
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We Strive to Maintain a Spirit of Teamwork |
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Throughout our organization we capitalize on the advantages of working together as partners in an informal manner. Although specific responsibilities are assigned to individuals in various functions of our business, we act as a team of partners. Combined efforts which help any part of our organization serve to strengthen our entire organization. |
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Every person should feel free to discuss matters with anyone else in our company. However, this informality does not relieve anyone of the obligation to respect lines of authority. Rather, it reflects mutual confidence in the good faith and sound judgment of our associates. |
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We Delegate Responsibility To Our People |
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The principle of broad delegation of responsibility, subject to review with others when appropriate, is applied to all our people. We assign our people to jobs when we have confidence in their judgment and ability to assume the responsibilities involved. Once on a job we give them reasonable freedom to carry out their assignments. |
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Good Performance Is Our Only Guarantee of Job Security |
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Good performance is the guarantee of security for Mark Controls as a corporation. Similarly, good performance by all employees must be ensured so that all of our people can share in the resulting personal satisfactions, monetary rewards, and long-term security. |
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Good Mark Controls performance requires that each position be staffed with qualified people who achieve good results, who really care, and who are willing to pay the price in effort. While we provide opportunity for people to grow with the company, it is up to the individual to take advantage of the opportunities. We are not committed to job guarantees for those who are not carrying their load. |
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We Conduct Frequent Evaluations With Each Person |
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Our supervisors are expected to make day-to-day and week-to-week evaluations of each person’s performance which enables us to arrive at mutual understanding and agreement about goals, past performance and the steps necessary to improve the individual’s future contributions. It is essential that these evaluations be communicated candidly and constructively to each person. |
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We Try to Promote From Within |
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We can expect to be a first-rate company only if we are staffed with first-rate people. We strive to fill each position with the most qualified person available. We fill all positions from within our ranks whenever we believe that a present employee can perform the duties of a more responsible position. We fill a vacancy from the outside only when the outside candidate has markedly better experience or development potential than an inside candidate. All other considerations being equal, or nearly equal, we greatly prefer to promote from within. |
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We Encourage Participation And Suggestions |
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We invite help and encourage suggestions in solving problems. Before implementing a plan for improvement, we seek the ideas of the people directly involved, knowing that their participation will improve the plan and result in a greater interest in carrying it out. We carefully consider any suggestion that might be of value. If we adopt a suggestion, we give full credit; if we cannot adopt it, we explain the reasons. |
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We Pay Our People Fairly |
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We maintain pay scales and benefit programs that compare favorably with local community practices. For all employees we do thorough research of competitive pay practices on a regular basis to ensure our employees are paid at appropriate levels for their position and geographic area. For non-union represented employees we normally review local pay scales at least once a year and make appropriate adjustments in pay ranges and individual rates when warranted. Labor union agreements govern rates of pay for those represented by unions. |
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Our compensation includes much more than salary alone. When considering pay ranges and negotiating wage agreements, we give due weight to benefits. These benefits, which increase our financial protection and security, are part of the total compensation paid for by our company. |
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We Insist Upon Integrity In Our People |
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We try to represent our company honestly to employees and expect honesty in return. We expect honesty from them in their handling of the substantial amounts of equipment, money, materials, and other property with which they are entrusted. |
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We expect honesty in intangible things as well—in time, effort, and full value of the jobs we perform, in fair play in dealing with others and in the acknowledgment of mistakes or other shortcomings. For our company to be known for its integrity, each one of us must meet high standards. |
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We Produce Products And Operate Plants Which Are Safe |
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Nothing is of greater concern to us than to avoid serious injury to our people and the general public. In the design, construction, operation, and maintenance of our products, equipment and facilities, safety is a primary concern. |
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We encourage participation in safety awareness activities. We are all committed to fostering safe practices in all our work. By meeting safety standards, we will be contributing to the well being of our people, our company and the communities we serve. |
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We Treat Our People Fairly And Without Favoritism |
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We recognize employees as individuals with different interests, abilities, needs, and values. We attempt to accommodate and satisfy these individual needs while treating the group as a whole on a fair, equal basis. We believe that impartial, fair treatment of people is a keystone of our management practices and is essential to making Mark Controls a good place to work. |
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We Do Our Best To Give Every Employee Complaint Prompt, Sincere Attention |
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Even little misunderstandings, if overlooked or neglected, may lead to great dissatisfaction. We establish methods for each employee to be heard. We try to anticipate and remove causes of legitimate complaints. Where a question exists, we give the employee the benefit of the doubt. When we reach a decision, we do our best to follow-up and take action that is just, both to the employee and the company. |
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We Try To Keep Employees Informed About Company Activities And Plans Which May Affect Them Or Their Work |
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A well-informed person performs more efficiently and avoids misunderstanding of objectives. Our face-to-face, written and other communications are to help inform our people and their families, give public recognition to employee achievements and encourage teamwork and cooperation. |
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We Encourage Employees To Participate In MCC Ownership |
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We encourage membership in the MCC Stock Purchase Plan. Our company pays the expenses and a portion of the stock purchase price which gives members of the MCC Stock Purchase Plan a stake in the financial success of the company.
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