The Wallace Group Case Study
University of Phoenix
November 2, 2008
SOC 120/ FELICIA BRIDGEWATER
This paper will address the most important problems facing The Wallace Group.
Recommendations to Harold Wallace, President and Chairman of the organization will be
formulated, in an effort to begin the process of restructuring the company for
development and growth. Finally, a description of how to educate a manager to manage
an organization as it evolves over time from an entrepreneurial structure to a more
complex structure will be discussed.
The Most Important Problem Facing the Wallace Group
The Wallace Group continues to operate as three independent companies Plastics,
Chemicals and Electronics. In addition, Harold Wallace serves as the Chairman and
President of the Wallace Group and appears to be controlling all of the three entities. Mr.
Wallace thinks the issues within the organization revolve around a personnel problem and
how people are managed.
While his assumption is partially correct, there are other factors contributing to this
problem. First of all, Mr. Wallace is not a well thought of individual. There are
employees who want to see him fired. The top managers are not listening to each other in
terms of the issues they are facing within their individual departments, and in turn Mr.
Wallace has not listened to his managers and does not appear to take any of the
employees seriously. The complaints from the Engineers lack validity in Harold
Wallace's perception because of the potential contract for $56 million over the next five
years with Lombard.
Most importantly, the company is not being managed for or open to change and
growth. This is reflected in Wallace's dependency on defense-related contracts, in the
financial highlights listed in the study for the last two years, and in the focus on cost...