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Ed Sullivan was general manager of the Plastics Division of Warner Manufacturing Company. Eleven years ago, Ed hired Russell (Rusty) Means as a general manager of the Plastics Division’s two factories. Ed trained Rusty as a manager and thinks Rusty is a good manager, an opinion based largely on the fact that products are produced on schedule and are of such quality that few customers com-plain. In fact, for the past eight years, Ed has pretty much let Rusty run the factories independently. Rusty believes strongly that his job is to see that production runs smoothly. He feels that work is work. Sometimes it is agreeable, sometimes disagreeable. If an employee doesn’t like the work, he or she can either adjust or quit. Rusty, say the factory personnel, “runs things. He’s firm and doesn’t stand for any nonsense. Things are done by the book, or they are not done at all.” The turnover in the factories is low; nearly every em-ployee likes Rusty and believes that he knows his trade and that he stands up for them. Two months ago, Ed Sullivan retired and his replace-ment, Wallace Thomas, took over as general manager of the Plastics Division. One of the first things Thomas did was call his key management people together and an-nounce some major changes he wanted to implement. These included (1) bring the operative employees into the decision-making process; (2) establish a planning com-mittee made up of three management members and three operative employees; (3) start a suggestion system; and (4) as quickly as possible, install a performance appraisal program agreeable to both management and the opera-tive employees. Wallace also stated he would be active in seeing that these projects would be implemented without delay. After the meeting, Rusty was upset and decided to talk to Robert Mitchell, general manager of sales for the Plastics Division. Rusty: Wallace is really going to change things, isn’t he? Robert: Yeah, maybe it’s for the best. Things were a little lax under Ed. Rusty: I liked them that way. Ed let you run your own shop. I’m afraid Wallace is going to be looking over my shoulder every minute. Robert: Well, let’s give him a chance. After all, some of the changes he’s proposing sound good. Rusty: Well, I can tell you our employees won’t like them. Having them participate in making deci- sions and those other things are just fancy man- agement stuff that won’t work with our employees.