1. CASE STUDY CONSOLIDATED PRODUCTS Consolidated Products is a medium-sized manufacturer of consumer products with nonunionized production workers. Kwaku Osei was a plant manager for Consolidated Products for 10 years, and he was very well liked by the employees there. They were grateful for the fitness center he built for employees, and enjoyed the social activities sponsored by the plant several times a year, including company picnics and holiday parties. He knew most 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. kwaku 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, Kwaku would try to help them. For example, when someone is injured but wanted to continue working, Kwaku found another job in the plant that the person would do despite having a disability. Kwaku believed that if you treat people right, they would do a good job for you without close supervision prodding. Kwaku 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 Kwaku, 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, kwaku was asked to take early retirement, and Tetteh Quayenor was brought in to replace him.. Tetteh 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 human relations training programs for supervisors. Tetteh believed that human relations training was a waste of time; 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. Tetteh told his supervisors to give any worker who had substandard performance one warning, and then if performance did not improve within two weeks, to fire the person. Tetteh believed that workers don't respect a supervisor who is weak and passive. When Tetteh observed a worker wasting time or making a mistake, he would reprimand the person right on the spot to set an example. Tetteh 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, Tetteh insisted that supervisors check him first before taking any significant actions that deviated from established plans and policies. As another cost-cutting move, Tetteh reduced the frequency of equipment maintenance, which required machines to be idled when they could be productive. since the machines had a good record or 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, Tetteh laid off workers rather than finding something else for them to do. By the end of Tetteh's first year as plant manager, production costwere reduced by 20% and production output was up by 10%. However, three of his seven supervisors left to take other jobs, and turnover was also high amng 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 t find any replacements for them. Finally, there was increasing talk of unionizing among the workers. QUESTIONS: 1. Compare the leadership traits and behaviors of Kwaku Osei and Tetteh Quayenor 2. Which leader do you think is more effective? Why? 3. Which leader would you prefer to work for? 4. If you were Tetteh Quayenor's boss, what would you do now?

1. CASE STUDY CONSOLIDATED PRODUCTS Consolidated Products is a medium-sized manufacturer of consumer products with nonunionized production workers. Kwaku Osei was a plant manager for Consolidated Products for 10 years, and he was very well liked by the employees there. They were grateful for the fitness center he built for employees, and enjoyed the social activities sponsored by the plant several times a year, including company picnics and holiday parties. He knew most 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. kwaku 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, Kwaku would try to help them. For example, when someone is injured but wanted to continue working, Kwaku found another job in the plant that the person would do despite having a disability. Kwaku believed that if you treat people right, they would do a good job for you without close supervision prodding. Kwaku 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 Kwaku, 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, kwaku was asked to take early retirement, and Tetteh Quayenor was brought in to replace him.. Tetteh 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 human relations training programs for supervisors. Tetteh believed that human relations training was a waste of time; 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. Tetteh told his supervisors to give any worker who had substandard performance one warning, and then if performance did not improve within two weeks, to fire the person. Tetteh believed that workers don't respect a supervisor who is weak and passive. When Tetteh observed a worker wasting time or making a mistake, he would reprimand the person right on the spot to set an example. Tetteh 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, Tetteh insisted that supervisors check him first before taking any significant actions that deviated from established plans and policies. As another cost-cutting move, Tetteh reduced the frequency of equipment maintenance, which required machines to be idled when they could be productive. since the machines had a good record or 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, Tetteh laid off workers rather than finding something else for them to do. By the end of Tetteh's first year as plant manager, production costwere reduced by 20% and production output was up by 10%. However, three of his seven supervisors left to take other jobs, and turnover was also high amng 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 t find any replacements for them. Finally, there was increasing talk of unionizing among the workers. QUESTIONS: 1. Compare the leadership traits and behaviors of Kwaku Osei and Tetteh Quayenor 2. Which leader do you think is more effective? Why? 3. Which leader would you prefer to work for? 4. If you were Tetteh Quayenor's boss, what would you do now?

Management, Loose-Leaf Version

13th Edition

ISBN:9781305969308

Author:Richard L. Daft

Publisher:Richard L. Daft

Chapter10: Designing Organization Structure

Section: Chapter Questions

Problem 2ED

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