I need executive summary and conclusion for the consolidated products case Read

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I need executive summary and conclusion for the consolidated products case

Read the Consolidated Products Case from Chapter 3, on page 73 in your text book Leadership in Organizations, ISBN-13: 9780132771948. Respond to the questions: Consolidated Products Consolidated Products is a medium-sized manufacturer of consumer products with nonunionized production workers. Ben Samuels was a plant manager for Consolidated Products for 10 years, and he was well liked by the employees. They were grateful for the fitness center he built for employees, and they enjoyed the social activities sponsored by the plant several times a year, including company picnics and holiday parties. He knew most of the workers by name, and he spent part of each day walking around the plant to visit with them and ask about their families or hobbies. Ben believed that it was important to treat employees properly so they would have a sense of loyalty to the company. He tried to avoid any layoffs when production demand was slack, figuring that the company could not afford to lose skilled workers who are so difficult to replace. The workers knew that if they had a special problem, Ben would try to help them. For example, when someone was injured but wanted to continue working, Ben found another job in the plant that the person could do despite having a disability. Ben believed that if you treat people right, they will do a good job for you without close supervision or prodding. Ben applied the same principle to his supervisors, and he mostly left them alone to run their departments as they saw fit. He did not set objectives and standards for the plant, and he never asked the supervisors to develop plans for improving productivity and product quality. Under Ben, the plant had the lowest turnover among the company’s five plants, but the second worst record for costs and production levels. When the company was acquired by another firm, Ben was asked to take early retirement, and Phil Jones was brought in to replace him. Phil had a growing reputation as a manager who could get things done, and he quickly began making changes. Costs were cut by trimming a number of activities such as the fitness center at the plant, company picnics and parties, and the human relations training programs for supervisors. Phil believed that training supervisors to be supportive was a waste of time. His motto was: “If employees don't want to do the work, get rid of them and find somebody else who does.” Supervisors were instructed to establish high-performance standards for their departments and insist that people achieve them. A computer monitoring system was introduced so that the output of each worker could be checked closely against the standards. Phil told his supervisors to give any worker who had substandard performance one warning, then if performance did not improve within two weeks, to fire the person. Phil believed that workers don’t respect a supervisor who is weak and passive. When Phil observed a worker wasting time or making a mistake, he would reprimand the person right on the spot to set an example. Phil also checked closely on the performance of his supervisors. Demanding objectives were set for each department, and weekly meetings were held with each supervisor to review department performance. Finally, Phil insisted that supervisors check with him first before taking any significant actions that deviated from established plans and policies. As another cost-cutting move, Phil reduced the frequency of equipment maintenance, which required machines to be idled when they could be productive. Because the machines had a good record of reliable operation, Phil believed that the current maintenance schedule was excessive and was cutting into production. Finally, when business was slow for one of the product lines, Phil laid off workers rather than finding something else for them to do. By the end of Phil’s first year as plant manager, production costs were reduced by 20 percent and production output was up by 10 percent. However, three of his seven supervisors left to take other jobs, and turnover was also high among the machine operators. Some of the turnover was due to workers who were fired, but competent machine operators were also quitting, and it was becoming increasingly difficult to find any replacements for them. Finally, talk of unionizing was increasing among the workers.

Explanation / Answer

Executive Summary:

It is the fact that culture of the company depend on the top management of the company. Employees down the line work according to the need of the upper management who decides the strategies to do the business.

A great example of Leadership in Organizations can be seen in this case study. When the company was not acquired by another firm, it was running its business as per the policies laid down by the upper management. The plant manager Ben Samuels was operating the company's business with a employee friendly manner and with the best ethics at the workplace therefore everyone working in the five plants under him were happy and the employee turnover was at its lowest. The management style Ben was applying was AFFILIATIVE style in which employees comes first and then their work. By this he was keeping employees motivated by keeping them happy with all the help and support he can offer at the workplace. And therefore under Ben, the plant had the lowest turnover among the company’s five plants, but the second worst record for costs and production levels.

When the company was acquired by another firm, Ben was asked to take early retirement, and Phil Jones was brought in to replace him. The new organizations main motto behind the decision of replacing the Ben was to run the plant with a generating a profit. With the change in the management strategy the working culture down the line has to be changed and therefore Ben was replaced by the manager Phil who had a growing reputation as a manager who could get things done. When Phil has taken charge, the working culture of the plant has began to change as he wanted that the employees are there in the company to only work and produce more. The ethical issues began to arise with the change in the working environment as people working under him were not happy and many skilled worker have started to leave the company just to find out a better place.

The management style Phili was applying was DIRECTIVE style which means "Do as I say" kind of management. In this working style a lot of work can be taken from employees working under. He was motivating employees to work by threats of loosing the job if they don't perform.

Therefore by the end of Phil’s first year as plant manager, production costs were reduced by 20 percent and production output was up by 10 percent. However, in his leadership many skilled workers have left the organization and company was at it highest employee turnaround.

Conclusion:

At the end it can be concluded that ultimately people are human being and must be treated with dignity so that a good working culture can be developed at the workplace. However, there are other means by which production can be increased like motivation employees employees in a conductive manner so that they can achieve the tasks in the time of need. Good and skilled employees are the backbone of the company and therefore company should always think of this fact before taking a hard decision towards them.

Ultimately, it is managements decision how they want to run their business and what is their present business need.And ethical values of the organization depend on company’s policies towards its employees and working environment and culture.

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