Case : The Explosion at DHR Construction

A Forced Changing of the Guard

Richard Davis, who handled the corporation’s finances at DHR Construction, LLC (the same company discussed in the case in Chapter 2 and again in Chapter 8), had decided some time back that it was time to “upgrade” from using a part-time book bookkeeper to an accountant. A two year audit conducted by the accountant revealed that about $25,000 of expenses connected to Alan’s (their foreman) corporate credit card account were either for non-business items (i.e. Christmas trees), multiple questionable charges (i.e. filling up the company truck six times in one day), and, at times, was signed by someone other than Alan (signatures on receipts did not match Alan’s signature). After a discussion with their lawyer and Alan, Hodgetts and the Davis’ agreed to let Alan go without pressing criminal charges.

Alan’s separation from the business left a wide managerial gap. So who was going to take over as foreman in the short term until they could conduct a thorough search and hire a new one? Davis and Hodgetts agreed that they needed someone immediately (tomorrow) to fill the position while conducting their job search. There was only one likely candidate who came to mind, Davis’s daughter Delores Davis (nickname RJ). RJ had the free time, had worked in a very tough and stressful environment (a legal office and a hospital) and excelled, and seemed to have both the interest and tenacity to try to learn the contracting portion of the business. From the Davis’ perspective, this would provide RJ an opportunity to determine whether she would want to be the one to eventually take over the family business; she needed to learn the business from the ground up.

Richard Davis then spent a few days at the work site with RJ to introduce her to the numerous subcontractors and to spread the word that RJ was going to take over the job of foreman while the business was searching for an experienced person. Richard also gave RJ a copy of all of the building blueprints, work charts showing which subcontractor had to be working at what time point in each home and what work the subcontractor would perform.   RJ was a very quick learner and after having several question and answer sessions with Davis and Hodgetts, they decided that RJ was ready to go solo on the job site.

The next day RJ was at the construction site checking in with all of the subcontractors to make sure that everyone knew what needed to be done by whom and in what order. RJ came home from the first day of the job exhausted and a bit disgruntled. At the dinner table RJ described how the electrical problems still had not been solved in one home and how the electrician guaranteed that he’d get the job done even if he had to work through the night to do it. Other problems kept creeping up and RJ had to be “the problem solver.” Many of these problems would throw the building schedule off and RJ had to shuffle the subcontractors between building sites in order to accommodate the numerous mishaps found in each home.

A Failed Inspection and Tempers Flare

After a few days on the job, RJ felt like work was unmanageable. One home in particular was quite problematic since the electrician seemed absolutely baffled as to what the problem was with the wiring in the dining room yet did not inform RJ of this dilemma until the electrical inspector showed up for a scheduled appointment at the work site. Other problems were also evident in other homes, with at least one other home failing a framing inspection. RJ’s reaction to all of this was simple. After ‘playing nice’ with the subcontractors who were giving RJ problems, RJ decided to turn hard-hitting and give these subcontractors a tough talking to. Heated words were exchanged and RJ and the subcontractors angrily parted company.

The Scene is Set – Action!

That night, after the failed electrical inspection, Hodgetts was invited over to the Davis’ for dinner so they could discuss the business and see how RJ’s first few days on the job were working out. The dinner conversation started out in its usual jovial manner but eventually moved to a discussion of the progress being made on the construction site.

RJ gave a summary of the past few days, including the failed inspections and the tough time RJ was having managing the contractors. The Davis’ and Hodgetts were absolutely silent through RJ’s description of the situation and everyone tried to keep their body language as controlled as possible. RJ finally came to an abrupt finish. This left a long pause for everyone else at the dinner table to fill with table talk or comments about the business. Before anyone could ask RJ a question about the building projects, she announced she was quitting the job.   “I quit.” Those two little words were dropped like an atomic bomb and seemed to burst across the dinner table at the Davis residence. RJ silenced the room and then she quickly vacated the premises. No one uttered a sound – the devastation was complete and absolute.

Questions

1. If Davis and Hodgetts were going to design (or redesign) the foreman’s job, what method(s) should they employ?

2. Describe how the approach to a team approach to job design might be helpful to Davis and Hodgetts when considering the foreman’s position.