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

Analysis Prepared by:

Francisco, Marvin
Importante, Marlyn
Magtibay, Roxanne
Nito, Lorenzo
Rosapapan, 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 parties
Areas 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
o There is no assurance that Winfares transfer will settle the dilemma and prevent future
events of the like.
o 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 Y
In 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 Science
Management 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

Pros Cons
Imposition of authority Lowers morale of workers
Opportunity to replace workers
Difficulty 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

Pros Cons
Pacify disgruntled employees May arise to higher demands
High likelihood of prompt restoration of
assembly line
Repetition of the deed
Both parties, in goodwill, will arrive at a win-
win solution
Employee loss of confidence in Winfares
management
Make use of Winfares expertise
C. Impose Stricter Strike Policies

Pros Cons
Possibility of uninterrupted operation Possibility of attrition
Imposition of authority May lower employee morale

Recommendation:

ALTERNATIVE

A
L
T
E
R
N
A
T
I
V
E

A B C
Row
Sum
Rank
A 0 1 1 2nd
B 1 1 2 1st
C 0 0 0 3rd
1 When the alternative under consideration has more value than the others
0 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.