The Cross-Functional Conflict and Coordination Problems of the EPD Division of Allentown Materials Corporation

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The EPD division of Allentown Materials Corporation has serious problems in cross-functional conflict and coordination. These issues hurt the division’s performance on new product development, service, morale, and decision making. Part of the reason for these issues could be due to declining market conditions and poor divisional performance but there seems to be fundamental organization problems. EPD markets have been shifting as a result of decline in military spending by government. The result has been increasing sales in the computer, telecommunications, and consumer electronics markets, which required rapid development of product extensions at competitive prices and good service and not unique technological advantage in the product. Inability to Marketing to forecast and develop accurate estimate created more uncertainty. Even though EPD operates in an uncertain environment, yet in terms of management and organization, it is similar to Allentown that participates in much of more certain and stable OEM businesses where Allentown had technological advantage and capital requirements have prevented serious competition. The division has differences between functions in structure, goals, time horizons and personal orientations of people. Market planning as a function has been eliminated due to cost cutting, and Product Development is working on projects similar to those of corporate R&D. There is greater need of coordination but there are no processes in place for coordination other than organization’s hierarchy and decision making of the Vice President. Most coordination and decision making is handled at the top in the monthly Product Development meetings , but this processes is not successful due to almost 10 – 12 new products di... ... middle of paper ... ... his subordinates and other key people. He should clarify is expectations, set a tone and direction as well as settle conflicts and inspire the division by following through. He should develop a more receptive view of conflicts and based on the situation encourage constructive conflict. As a long term … A program should be developed for identifying potential project managers and consciously developing them through cross-functional work experience and various trainings. These trainings should not only include technical marketing and product development but also on communication and group effectiveness. If there is no corporate training program in place then EPD should initiate this program within its division. There should be a change in accounting and control system, which places gross margin responsibility at the plant. Marketing department should be like GE MDO…

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