Management style causes resignation

Press, 27 November 1982, Page 19

Management style causes resignation

NZPA Sydney The founder of the Hanimex Corporation. Ltd, Mr Jack Hannes, has resigned as managing director. The resignation will take effect from December 31. The group chairman, Mr Philip Best, and Mr Hannes said in a joint statement that Mr Hannes had been associated with Hanimex for 35 years. “Over a considerable period of time, it has become apparent to both of us that there is a significant area of difference between the management philosophy of Burns Philp and Company, Ltd, Hanimex’s major shareholder, and the management philosophy of Mr Hannes,” the statement said. "The problem is not one of personal compatability but one of basic business philosophy, and experience has shown that even with good will from both sides there is no solution. “For this reason and obviously because Burns Philp represents the majority shareholding, it is with considerable regret that Mr Hannes has submitted his

resignation." Mr Hannes said later at a press briefing that the difference in philosophy turned on the suitability of a committee style of management to Hanimex, a corporation whose major interests centred on the photographic industry. The industry’s fast rate of technological advancement made a committee style of management unworkable, Mr Hannes said. Entrepreneurial leadership was required to cope with the changes. As examples he cited the increasing share of the pocket instant camera market captured by disc film cameras and of the film processing market by minilaboratories. A committee style of management tended to focus too much decision-making power on directors who lacked expertise in the photographic industry, Mr Hannes said. Such management also tended to think in terms of five-year plans. Mr Hannes said innovations often required managers to alter designs and production and sales forecasts on a sixmonths basis.