Gulf Metal States A. Situational Analysis

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1)Gulf States Metal, Inc. Company is engaging in Nickel refining and also produces copper, cobalt, and ammonia sulfate. Its parent comp any is International Metals Inc. GSM created before 10 years by IMI and GSM has been in operation now for 8 years. IMI expected GSM to lose money the first 2 years operation after that it was expected to be highly profitable. In fact GSM has not shown a profit, losing $1million last year. This loses because of variety of factors and demand decrease for Nickel and Copper, the condition of equipment and labor problems. Another problem is price of substitute product is less. As they have done 20 years contract so as per terms current price for Nickel and Copper the cost of
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Other problem is that none of the managers had any leadership or management training. They are highly autocratic and believe that the only way to get the operators to do their job is to “be tough on them”. They just got done dealing with a union walkout that last about 9 months. Since the strike anti-management feelings has been at an all time high.

2) There needs to be a companywide intervention in GSM. The plant will survive for much longer like that. First, all managers at every level and supervisors need to go through some leadership and management training. There is much more to managing people than to just know the job well. Since the communication is lack, there should be confrontation in the organization to open the communication lines between all levels. Then the company can clearly identify what the real problems are and then can come up with solutions. The staff will come up with a list of the identified problems and prioritize them as they see fit. This would be done by organizing a meeting with all department managers and supervisors and systematically working through the issues. The aim of this intervention is to use employee’s knowledge and energy to improve work and, to eliminate unnecessary work. Also trust will be build through a process that allows and
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