Magrec, Inc. Case Study Essay

1145 Words Jun 28th, 2011 5 Pages
Running head: MAGREC, INC. CASE STUDY

MagRec, Inc. Case Study
Toni A Godwin
Submitted to: Professor Tom Ramsey
GM591 – Leadership & Organizational Behavior
Submitted: May 17, 2011

Summary of the Case Study
This case study involves MagRec, Inc., and the conflict caused by perceptions. This company produces magnetic recording heads, an essential device used for reading, writing, and erasing data on tapes and disks. Nine years ago, it was discovered that one of the parts to the magnetic recording heads had a design flaw due to calculations. The design flaw could be reworked to meet all specifications except one – life expectancy. The heads are sold to Partco – MagRec’s largest customer - with a guarantee to last 2 years
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There is low morale within the department after Dinah makes the phone call to Partco. I think these problems are caused by the perceptions of Dinah, and Pat. In addition, there is a sure indication of cognitive dissonance between Dinah and Pat. Perceptions serve as a screen or filter through which information passes before it has an impact on people. Because perceptions are influenced by many factors, different people may perceive the same situation quite differently. Nevertheless, we assign different meanings to what we perceive (Freezeonearth, n.d.). In addition, the meanings might change for a certain person. One might change one's perspective or simply make things mean something else (Freezeonearth, n.d.). Managements perception of the situation nine years ago was that they needed to protect their account with Partco – losing that account would mean jobs lost. Therefore, they sent out the parts with the shorter life spans, knowing the problem – if it came up – could never be traced back to them. Their perception was that it was a “victimless” crime. On the other hand, Dinah’s perception was the complete opposite. Her perception was that management had committed fraud by their actions and by doing so had risked the company’s reputation as a quality supplier.
The other key factor in this case study is cognitive dissonance. People must maintain a consistency

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