Intelligentsia Case

Intelligentsia

Word count: 1013

Key Facts:

* General Engineering bought out MCP systems research, a small innovative company and as a result of this merger, a new company was formed: Intelligentsia Systems Incorporated.

* The new company is looking to enter the new market of wireless telephone and data services.

* Ex-CEO Pat Chuchinniwat of GE is now the new CEO of Intelligentsia, while the ex-CEO of MCP is the chair of the board of Intelligentsia.

* An expensive laboratory has been set up to test edge-cutting technology headed by Dr. Ute Klemper.

* Owners of GE are planning for the new company to go public in two years.

* Pat Chuchinniwat has set up the company as an honest corporate citizen with many benefits directed to the employees as well as a performance appraisal system to support the new culture.

* Merritt Hadley VP of human resources has engaged Natchez Associates to help make the merger go smoothly as the two companies working towards adopting a new and different organizational culture.

* The consultant is given a number of files and documents to review on the different issues/problems currently faced by Intelligentsia.

* Intelligentsia is undertaking a project to place a bid for providing services during the Olympics and is due to submit the bid in a month to Geneva.

* Rand Smith is looking to fire anyone threatening the Olympics Bid project undertaken by Intelligentsia and this is backed by the board it seems.

Symptoms:

* The two merged companies have entirely different cultures. GE is old school, slow motion type and very conservative, while MCP is outgoing, dynamic, energetic and driven by exploring new areas and ideas.

* Downsizing is expected at the VP level as the new company does not require as many top management employees. This is causing fear and stress amongst management.

* Rand Smith is given the authority to let go employees who are considered a threat to the new company's goals.

* There are a number of conflicts that occurred lately between employees and their managers/supervisors.

* Many employees are having a hard time adjusting to the new culture.

* The consulting firm has reviewed a number of documents and assessments of employees and is anticipating there will be some people problems due to the clash of the two different cultures.

* Intelligentsia is attracting media who is anticipating to get some "dirt" on the company's potential plans of downsizing.

Problems of the case:

* The Intelligentsia merger is facing high resistance on behalf of all level of employees from VPs to line workers.

* There is a lot of conflicts and hostility between employees and management.

* The culture that Pat has introduced for Intelligentsia does not seem to materialize in the real world as many employees are stressed due to the fear of loosing their jobs as well as due to the changing culture.