4. How, if at all, should Calveta’s organization structure and practices be changed to accommodate growth and effective communication, while maintaining the company’s culture?
This is a very sticky issue. Growth, along with other factors, seems to have diminishing effects on company culture, popularly referred to as “Antonio’s way”. Two forms of growth present themselves to the company. They can either expand into the hospital segment (which falls in line with core competencies); or they could buy up GSD consequently growing their SLF customer base. Given the issues listed, I don’t believe purchasing GSD would be profitable, as debt financing would have to be undertaken thus, going against Antonio’s way. However, Frank believes they must grow in order to stay competitive within the industry so the former opportunity should be undertaken.
The turnover, and promotion rate for Calveta is too rapid. It’s one of the major issues dissatisfied customers had with the SLF. Frank should consider slowing this down, and perhaps placing new staff members in proper training programs administered by current staff to ensure smooth staff changes. Whilst flexibility and ease of advancement may make the employees happier, the customers will suffer from the constant interrupted changes. Calveta should maintain a degree of normalcy in the workplace, and make it harder to advance (could have positive affects on employees motivation).
Another structural issue is the current staff organization. If Frank is worried about the loss of emphasis on his father’s ideals he must communicate this effectively with the staff. Discussion groups, incentive packages, and achievable goals should be established for all staff members, especially new ones, so that company culture is maintained and reinforced.
If Calveta are to grow, they will need a larger amount of regional employees. This will most likely lead to the hiring of persons outside of the company. Calveta need not hire them right out of college though. They may obtain them from similar companies with similar values and ideals. As GSD is about to be taken over, perhaps the better staff members may wish to come to Calveta instead of staying on with a new owner.
To ensure continuation of company culture pointed questions in the interview and recruitment process pertaining to it should be asked. Similarly, constant feedback for current employees would reinforce challenge 4, of Antonio’s way.