MGT 2383 Fall 2012: Group Case Fran Hayden Joins Dairy Engineering
(Author: Glyn Jones, University of Waikato, New Zealand) Background: Dairy Engineering (NZ) Ltd. has its headquarters in Hamilton, New Zealand with manufacturing plants in South Auckland and Christchurch. The company manufactures equipment for the dairy industry. In its early years it focused on the domestic market but in the last five years has expanded to the export market. The company employs 450 people, which makes it a large company by New Zealand standards. The case focuses on events in the Accounting Department at head office which is organized into two sections, Cost Accounting and Management Information Services (MIS). Fran, the New Graduate: Fran Hayden is in the final year of her Bachelor of Management Studies (BMS) degree at the University of Waikato where she has proved to be a high achiever. Fran was interested in a position with Dairy Engineering because of the opportunity to gain practical experience, the higher starting salary compared to the industry average, and that her boyfriend lived in that community. Fran sent her resume to the company and two weeks later was invited to an interview with the Chief Accountant. She was surprised at the end of the interview to be offered the position of Assistant Cost Accountant. Fran said she would like to think it over. Two weeks later when she had still not replied she received a telephone call from Rob asking if she was going to take the position. Still not totally convinced, Fran decided nonetheless to accept the offer. The First Day at Work: Like many of her peers, Fran was glad to be leaving university after four years of study. She was looking forward to making money to spend; as well as, reducing her student debt. In order to „look the part‟, she had gone further into debt to buy new „corporate clothing‟. On reporting to the Accounting