This case study analysis examines the challenges faced by Erik Peterson during the Hanover cellular system startup at GMCT, a subsidiary of CelluComm. The paper identifies both internal and external problems — including poor organizational communication, inadequate human capital, absence of high-performance work practices, and structural capital deficiencies — and traces their underlying causes. It evaluates Peterson's effectiveness as both a manager and a leader, then analyzes what went wrong during senior management's site visit and how Peterson might have responded differently. The paper concludes with broader lessons about performance management, employee development, and the consequences of a dysfunctional corporate culture.
Organizational citizenship behavior (OCBs). One of the most significant problems Peterson faced was the lack of communication throughout the CelluComm organization. A number of people were hired or placed in positions without the communication that would typically be expected. Peterson did not even know who he reported to, leaving him unclear about his specific responsibilities and his relationships with others in the organization. He initially made mistaken assumptions about working directly with Jenkins when he joined CelluComm, and he did not seek the clarification that would have filled in these gaps.
Inadequate human capital. Peterson also lacked specific working knowledge of the cellular industry necessary for him to perform well, and Hardy similarly lacked relevant experience. Hardy was therefore unable to mentor Peterson in the areas where coaching was needed. As noted in foundational human capital theory, placing individuals in roles that exceed their knowledge and skill base without adequate support creates predictable performance deficits.
Lack of high-performance work practices (HPWPs). Peterson was given a significant amount of responsibility but was not granted the authority to go with it. He was second-guessed on a number of decisions, even though there appear to have been no clear rules or guidelines he had been specifically told to follow.
Lack of high-performance work practices (HPWPs). Peterson also had serious problems with his direct reports. Curt Andrews's success was critical to the project, yet his performance was marginal. It was unacceptable that Andrews continued to run out of radios, and Hardy refused to transfer or replace him. Andrews's ongoing conflicts with Melissa, Trevor, and Todd were further indicators of how serious a problem he posed. CelluComm effectively set Andrews up for failure by placing him in a position for which he lacked the required skills, within a timeframe that allowed little room for a learning curve. This personnel mismatch then became Peterson's problem to manage.
It should also be noted that Andrews's references to himself as a "male chauvinist" were unacceptable and contributed to a hostile work environment for the women in the organization.
Lack of organizational effectiveness. Peterson faced additional problems in his handling of salary issues for both Melissa and Trevor. He failed to get appropriate input from HR — a department that appeared to be largely absent from GMCT and CelluComm's operations throughout.
Lack of organizational effectiveness. Peterson also mishandled the placement of Stevana Hanes into the construction coordinator position. His delay in informing Mike Delavo compounded difficulties for all three parties involved.
Lack of high-performance work practices (HPWPs). Peterson's concern that Hardy felt insecure in his relationship with Jenkins was yet another challenge. The reorganization that brought Dash in as VP only worsened Hardy's situation and, by extension, Peterson's.
Lack of high-performance work practices (HPWPs). Peterson's relationship with Cantor and Green became problematic once they took on the zoning challenges, particularly because Peterson was not comfortable asking them to report their status directly to him. High-performance work systems require clearly defined reporting structures and accountability mechanisms — both of which were conspicuously absent here.
Lack of organizational effectiveness. One of the external problems Peterson faced was the requirement to meet strict external deadlines and system specifications. He needed to have 16 of 21 cells operational at the time the system was turned on. Fewer than 16 operational cells would provide inadequate coverage for cell signaling, resulting in dead zones and dropped calls that would create customer service issues. This would in turn put GMCT at a competitive disadvantage, with potential sales lost to NET.
Lack of structural capital. Getting 16 cells operational by the agreed turn-on date required the timely delivery of equipment. Peterson had no control over the four-month delay Jenkins caused by not deciding on dual-mode radios until February. Similarly, the headquarters decision to include backup batteries with all power supplies contributed to scheduling problems, as did the decision to change the frequency reuse pattern. While these issues arose from internal decisions within CelluComm, they created problems with external suppliers.
Open systems. Zoning problems presented another external challenge for Peterson, one further complicated by Hardy's lack of support for Peterson's decisions. As an organization, CelluComm lacked an open systems perspective — the capacity to anticipate and manage the ways in which environmental actors and external stakeholders affect operations.
Lack of organizational effectiveness. The local utility presented an additional problem through delays to the make-ready process, another external factor outside Peterson's direct control.
Organizational citizenship behavior (OCBs). The underlying cause of ineffective internal communication was poor OCB. By failing to keep each other informed, CelluComm and GMCT personnel did not support the social and psychological context their organization depended on. Instead, they engaged in counterproductive work behaviors that undermined organizational effectiveness. Knowledge acquisition, sharing, and use did not occur in ways that would encourage high-performance work practices.
Inadequate human capital. Not just Peterson, but Hardy, Andrews, Trevor, and others all possessed insufficient human capital — the knowledge required to perform their jobs effectively — which in turn diminished overall organizational effectiveness.
Lack of high-performance work practices (HPWPs). The underlying cause of CelluComm and GMCT lacking HPWPs was the absence of internal systems and structures that would facilitate employee and company success. Established procedures should have been created but were not; information should have flowed in both directions but did not; clear reporting lines should have been established but were not.
Lack of organizational effectiveness. CelluComm and GMCT personnel lacked an open systems perspective in their interactions with the local telephone company and local communities, treating these external relationships as peripheral rather than integral to operations.
"Mixed record managing operations and providing leadership"
"No agenda, poor preparation, demotion without due process"
"Consequences of poor performance management and culture"
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