1-16 Responsibility for Analysis of Performance Foundry superintendent Head of job evaluation Vice-president, personnel Head of general accounting Budget director Tool-room superintendent Chief purchasing agent Head of cost analysis Inspection superintendent Stamping superintendent Head of research President Head of production control Vice-president, sales John Phillipson is the new con- troller of a huge company that has just overhauled its organization structure. The company is now decentralized. Each division is under an operating vice- president who, within wide limits, has responsibilities and authority to run his division like a separate company. Phillipson has a number of bright staff members, one of whom, Bob Garrett, is in charge of a newly created performance-analysis staff. Garrett and his fellow staff members prepare monthly divisional performance reports for the company president. These reports are divisional income statements, showing budgeted performance and actual performance, and are accompanied by detailed written explanations and appraisals of variances. Each of Garrett's staff members had a major responsibility for analyzing one division; each con- sulted with divisional line and staff executives and became generally ac- quainted with the division's operations.

After a few months, Bill Whisler, vice-president in charge of Division C, has stormed into the controller's office. The gist of his complaint follows: "Your staff is trying to take over part of my responsibilities. They come in, snoop around, ask hundreds of questions, and take up plenty of our time. It's up to me, not you and your detectives, to analyze and explain my division's performance to central headquarters. If you don't stop trying to grab my responsibilities, I'll raise the whole issue with the president." 1. What events or relationships may have led to Whisler's outburst? 2. As Phillipson, how would you answer Whisler's contentions? 3. What are some alternative actions that Phillipson can take to improve future relationships?