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People Problems at Hei

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Organizational Behavior Case: People Problems at HEI

After graduating with honors with a management major from State University, Ashley James accepted an entry level position in the Human Resources Department of
Hospital Equipment Inc. (HEI), a medium-sized manufacturer of hospital beds and metal furniture (bed stands, tables, cabinets, etc.). This hospital room product line has been a “cash cow” for HEI since the founding of the firm 35 years ago by James Robinson, Sr. In recent years, however, HEI’s market share has become eroded by some of the big office furniture firms, both in the
United States and abroad, who are starting to diversify into the health institution market.
Mr. Robinson has been easing into retirement the last couple of years. His only child, Rob, was made CEO three months ago. Rob came up through product engineering for two years and then headed up operations for the past four years. Rob had been a three-sport star athlete and student body president in high school. He then went on to State University where he graduated near the top of his class in mechanical engineering.
In his new leadership role at HEI, Rob’s vision is to take the firm from being a low-tech bed and metal furniture manufacturer that is going downhill to become a high-tech medical equipment manufacturer. Rob is convinced that even though this would be a dramatic change for HEI, there is enough of a foundation and culture in place to at least start a new division focused initially on operating room equipment.
Rob’s marketing manager had commissioned a study with a marketing research firm that concluded operating room equipment supply was not keeping up with demand and was way behind the rest of the health care supply industry in terms of innovative technology for patient comfort and care. The marketing manager, armed with this information,

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