Consolidated Products is a medium-sized manufacturer of consumer products with n
ID: 369531 • Letter: C
Question
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 that 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. Answer all the questions (3 x10= 30marks) 1. Describe and compare the managerial behaviour of Ben and Phil. To what extent does each manager display specific relations behaviours (supporting, developing, recognizing) and specific task behaviours (clarifying, planning, monitoring)? To what extent does each manager use participative or inspirational leadership? 2. Compare Ben and Phil in terms of their influence on employee attitudes, short-term performance, and long-term plant performance, and explain the reasons for the differences. 3. If you were selected to be the manager of this plant, what would you do to achieve both high employee satisfaction and performance?
Explanation / Answer
1. The case study describes managerial traits of two managers namely Ben Samuels and Phil Jones, both are in charge of the same plant but for a different time frame and the managerial traits of the two are contrasting in nature. If we analyze and discuss their traits we can state that the style followed by Ben Samuels was democratic and his attitude towards other employees and even subordinates support the statement. Ben has been associated with Consolidated Products for the last 10 years and possess a very healthy relationship with the management as well as with the employees. His attitude towards the employees were very much polite and cooperative and he always tried to be with them in times of need the employees were grateful to him because of the fitness center he built for the betterment and recreation of the employees because of his helping and caring nature each and every employee reached out to him in times of need and were not at all reluctant in discussing even person issues. Ben Samuels also valued the importance of employees and he never believed in layoffs neither did he support it because he believed that it is tough to replace skilled labors who have been loyal to the company his idea was to treat employees right so that employees treat the company well.
Phil Jones replaced Ben Samuels after the organization was acquired by a different firm and the managerial style Phil followed was Autocratic, initially his objective was cut down on costs and he did it by closing down the recreation and the social events that the employees enjoyed or availed. The fitness center was closed and there was a training program for supervisors which was in order to enhance their human relation qualities was also stopped. Phil believed that performance is the only parameter and there will be no tolerance in this aspect, even if the employee is going through personal or other issues he has to keep on performing at his best in order to sustain and survive in the organization. Phil did not encourage supervisors to formulate any idea rather he conveyed that no idea should be processed without his consent. Employees were even fired if there is a lack of quality performance for even 2 weeks and it was stated by him that supervisors have to be strong and strict because workers do not respect or obey passive leaders. The objective of Phil was to make the company productive and in order to achieve he is ready to extract the labor from the employees.
2. Ben had a very good relationship with the employees and each and every employee always look towards him for support in any issue and his active participation with them ensured loyalty. He would socialize with them on a regular basis and also encouraged ideas from the supervisors, instead of setting figures he strived for mutual benefit. The figures say that Ben's Plant had the lowest turnover the 5 plants of the organization but the cost of production was low and attrition was negligible.
Phil did not gave importance to employee relation and always considered performance as the only parameter and went to all levels he always believed in statistics and was ready to layoff any employee in order to cut price and as a result it was observed that the production output increased significantly by 10% production cost decreased by a whooping 20% but employee relationship deteriorated and as a result 3 of the 7 supervisors left Consolidated Products and various skilled workers followed them making it difficult for Consolidated products to find their replacement.
Phil has proved that his style is sure to provide results which is reflected in just year of his tenure but in the long run Ben may seem more effective because an Organizations stature and repute is not a over night phenomenon. It requires a consistent performance throughout and the the organization should possess a position in the industry. Employees are the asset of each and every successful organization which Phil ignored and substituted that with performance.
3. The styles observed and discussed are Autocratic Style that Phil believed in and the diplomatic Style that Ben believed in but in order to be successful as a manager of Consolidated Products I would have followed the Paternalistic style which would have ensured well being of the organization and the employees. A business cannot afford to lose an employee in order to be more productive and the reverse is also true, therefore instead of burdening the employees with work I will make them feel connected with the organization and as a result they will enjoy work. As a manager I will encourage new ideas from all but the decision should be taken keeping in mind employee satisfaction and company output because if the business is at loss ultimately the employees will be at risk of losing their jobs. I believe that a healthy attrition is always good because there will be employees who do not like the job or are not fit for the organization, then these employees should be monitored and decisions will be taken keeping in mind the humanitarian aspects.
It can be concluded that as employees are an important stakeholder of an organization, profit and revenue are motivation and fuel of the business, hence none of them can be avoided for the cause of business.