“DISSASTISFACTION and DECLINING MORAL in SELF-DIRECTED WORK TEAMS”

MBA 435 Organizational Behavior

TELEREACH

Scope

• Company Background

• Case Brief

• Issues

• Application of Behavioural Theories

• Recommendations

Company Background

• USA-based company• Manufacture gadgets for Telecom Industry

Globalmarket US $750 share million

Market annually

Company Background

• Factory in Flagstaff, Arizona

3,000 non-unionmember workers

high premium wages staff turn-over rate

of 2% competitors staff

turn-over rate 25% 46-year-old factory

operating 7 days/wk.

Industry Leader in • PRODUCT QUALITY

• CUSTOMER SERVICE

• TECHNOLOGICAL INNOVATION

•ENVIRONMENTAL CONCERNS

• Advancements in global Technological Innovations created a demand for the company’s products.

• Production line set-up in the factory was outdated and time consuming.

• Company decided to create a new “centralized” Production line to enhance productivity and meet global demand.

• Implemented a Prototype project.

Case Brief

Case Brief

• 7 months later, new factory opened in Lake Charles, Louisiana

Manufacturing “high volumes” of standard components Self-directed teams consisting of 160 cross-trained workers

TWO MAIN Characters in the Case

Case Brief

TOM MARTINManager

Lake Charles Plant

BILL EDWARDSManager

Flagstaff Plant

Issues

PROBLEMS at LAKE CHARLES Plant• Selection process too comprehensive and time consuming

• Bad Management structure with limited HR skills

• Supervisors assuming “dual” roles

• Poor communication between Management and Cell teams

• Absence of Steering Committees & meetings

• Factory’s rapid growth & reshuffling of teams

• Lack of team training & staff development

• Effect on compensation packages

• Lack of team involvement

• Lack of Awards for achievement

• Unfavorable work-shift structures

1. Why were manufacturing and production cell team members in Lake Charles discontented?

Lake Charles Organization Chart

Source: BUSINESS CASE JOURNAL

Issues

2. What should Tom Martin do to address the problems that were causing the discontent in Lake Charles?

Source: GOOGLE

Issues2. What should Tom Martin do to address the problems that were causing the discontent in Lake Charles?

Proposition under Herzberg’s 2 Factor Theory (1959)• only a challenging job that has the opportunity for Achievement, Recognition, Advancement, and Growth will motivate a person.

JOB CHARACTERISTIC MODEL - Hackman & Oldman (1976)• supersedes the 2-factor theory by introducing 6 new variables more practical and applicable in today’s modern work environment.

1. Human Resource Management2. Ergonomics3. Organization Culture4. Leadership Style5. Human Performance Improvement (HPI)6. Workplace Spirituality

Issues2. What should Tom Martin do to address the problems that were causing the discontent in Lake Charles?

Source: GOOGLE

PROBLEMS at the FLAGSTAFF Plant

• worker’s were disillusioned

• used as “guinea pigs” as the prototype plant

• stuck in the cell

• no opportunities for advancement/promotions

• high expectations not met

• lack of consultation from Management

• decline in team’s decision-making power

• team conflicts arising out of laxity

Issues3. What should Bill Edwards do to address the problems that were causing the discontent in Flagstaff?

Issues3. What should Bill Edwards do to address the problems that were causing the discontent in Flagstaff?

Source: GOOGLE

Issues3. What should Bill Edwards do to address the problems that were causing the discontent in Flagstaff?

Source: GOOGLE

When introducing self-directed work teams in to an organization, what can managers do to circumvent the problems TeleReach experienced?

• Increased communication with team members • Regular team meetings to discuss issues• Equal opportunity for employment • Removing some controls while retaining

accountability.• Set Strategies and Organisational Objectives• Greater team involvement in decision making

Team Building

Source: GOOGLE

Recommendation

Imply Douglas McGreagor's “Theory Y” Management system

• a participative style of management which “assumes that people will exercise self-direction and self-control in the achievement of organisational objectives to the degree that they are committed to those objectives”.

• Introducing Rewards system will result in employees’ loyalty and commitment to the organization.

• Improve on Organizational Structure

• Communication and Regular Staff Meeting

• Organizational Strategies and Objectives

• High employee morale increases productivity, as well as reduces employee turnover rates, decreases employee complaints, and improves job satisfaction

• These benefits to the organization include a more creative work environment for productivity to increase, which will result in higher employee performance, and an increase in employee retention.

• Creativity, resourcefulness and innovative potential of the employees can be utilized to solve organizational problems.

Conclusion

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Questions?