Case: Policy Encounter, Power, and Motivation at Consolidated Automobile

Analysis Prepared by:Francisco, MarvinImportante, MarlynMagtibay, RoxanneNito, LorenzoRosapapan, Jenny

Synthesis:Two young automobile assembly-line workers, Strong and Kane, gained access to the electric power and shut off the power supply, which effectively suspended production of the plant and profit losses. Among the clamors of disgruntled workers was to remove Sam Winfare, the current plant supervisor. The plant manager has to accomplish two objectives: (1) to restore production on the profitless assembly line (a solution about which he was uncertain), and (2) to develop policies for preventing future interruptions by assembly-line workers.

Point of View: Plant Manager as he is the decision-maker in the case

Statement of the Problem: What set of rules/policies should be developed by Consolidated Automobile Manufacturers, Inc. if not prevent, to minimize employee-related disruptions in production?

Objectives: To immediately restore production To revisit / revise existing policies and / or develop new policies to prevent potential production disruption To develop and implement policies that would allow Management to hear and address employees concerns that would benefit both partiesAreas for Consideration and Assumptions:

It is worthy to note that in order to achieve maximized productivity, profitability and competitiveness, management ought to execute four key functions i.e. planning, organizing, directing (leading) and controlling (PODC); and that each function is interlinked to the other. Hence, examining further the case of Consolidated Automobile, the pressing problem at hand stems from planning to controlling phase of management.

To elaborate, consider the following: Planning It is to assume that when Winfare started supervising the assembly line, the primary goal is to improve production rate as it has continually been below quota not to exceed quota rather to hit quota. Thus, there is a laid-out plan to recover production in the assembly line.

Organizing Through Winfares short-term supervision, the assembly line was able to meet desired expected output.

Directing It is to presume that the preceding management has been work-at-your-own-pace style resulting to low production rate. Hence, given the need to meet quota, from a laborers standpoint, the imposition of stringent management approach has imposed an over-worked notion to workers. It is to assume, as well, that assembly line workers may have rendered over time and have not been duly compensated.

Controlling The barrier fencing the electric power supply area which contains all power equipments necessary to plant operation is insufficient. As such, Strong and Kane were able to plainly access and disrupt power supply, which paralyzed operation of the assembly line resulting to production losses.

Others There is no assurance that Winfares transfer will settle the dilemma and prevent future events of the like. There is a need to improve workplace conditions i.e. cafeteria and relief from more than 100-degree heat in the metal shop.Discussion of Framework / Concept:Organizing: Max Webers Macro Approach: Bureaucracy The Macro approach focuses on employees core competence rather than interpersonal association. As Consolidated Automobile is a skill-intensive company, proper positioning and skill matching of workers is a must to achieve quota. It is evident that this approach has led to the plants improvement in production and efficient usage of workforce.Leading: Follets Leader as Facilitator, McGreggors Theory X and YIn Follets approach, it is emphasized that managers should facilitate the work of subordinates rather than control employees. It can be deduced that Winfares management style (Theory X as he perceives assembly-line workers as idle hands) distressed workers since he has focused on output while neglecting his workers welfare.Planning: Management ScienceManagement Science will allow Consolidated Automobile to predict / forecast what cycles of the year will be peak and low seasons. This approach will better provide Winfare when to plan work force ahead of time and redirect workers in case of low utilization.Controlling: Organizational and Operational Approach Organizational approach focuses on the existing system while Operation control deals focuses on daily output relative to schedules, specifications and costs. Apparently, Consolidated Automobile excels in operational perspective; it should as well strengthen its organizational platform. The unions protest should suggest that the system is flawed.Alternative Courses of Action:A. Terminate Strong and Kane

ProsCons

Imposition of authorityLowers morale of workers

Opportunity to replace workersDifficulty in hiring new workers if the two employees are attributed to special skills

Possibility of lawsuit

Possibility of attrition

B. Retain Winfare and Facilitate Dialogue

ProsCons

Pacify disgruntled employeesMay arise to higher demands

High likelihood of prompt restoration of assembly lineRepetition of the deed

Both parties, in goodwill, will arrive at a win-win solutionEmployee loss of confidence in Winfares management

Make use of Winfares expertise

C. Impose Stricter Strike Policies

ProsCons

Possibility of uninterrupted operationPossibility of attrition

Imposition of authorityMay lower employee morale

Recommendation:ALTERNATIVE

ALTERNATIVEABCRow SumRank

A0112nd

B1121st

C0003rd

1 When the alternative under consideration has more value than the others0 When the alternative under consideration has less value than the others

Alternative 2 is recommended to resolve the issue of Consolidated Automobile. The odds are high in achieving a win-win solution that is to restore operation, prevent additional losses and address main concerns of the workers. It also allows management to investigate the root causes and give leeway to revisit and / or develop policies and process, which are agreeable to both parties.Action Plans: Enforce corrective actions to Strong and Kane due to grave misconduct. Restore power supply and provide alternative source of electric power. Request rest of the workers to resume operation upon reinstallation of power supply. Schedule closed-door dialogue with unions representative and hire a consultant to act as middleman during the dialogue. Consolidated Automobile should establish business continuity plan to address future interruptions in operation Learning Points:As organization is continuously evolving through time, conventional approach to management should as well move, progress and/or shift to a more applicable management method.