¶ … change needed-changing "things" of changing the "people and culture?" Can the Wisconsin plant be saved by changing things alone, by changing people and culture, or both are changed?
The objective of every business is to make a profit. This objective is achievable through proper planning and resource management within an organization (Daft 63). The changing nature of the business environment makes the profitability of business to reduce. It is for this reason that organizations have to be able to adapt to the changing dynamics in the business world. The profits of Wisconsin plant have been diminishing gradually. This has become an issue of concern to the management which is now seeking to introduce changes in the organization.
The high cost of labor is making the operational cost of the plant increase contributing to low profit margin (Daft 68). Mr. Jim the production unit manager has the responsibility to devise a solution to this predicament. The management wants to close the plant if it cannot be able to operate profitably. The plant has five hundred and twenty...
This people solely depend on the salary and wages they get from this company. Mr. Jim has a concern for the welfare of these employees, since; it will be hard to find a job with the present unemployment rates within the locality of the plant.
The production manager discussed with the union on accepting low wages for the employees, but they declined. Further, he suggested cross-train the employees to have them work in different levels, and the idea got rejected. As a production manager, he does not want the firm to close down a plant that has potential to operate profitably. The other alternative solution to this problem is hiring of Mexican workers at low wage, and the company will saves $15 million per year on labor (Lewis 17).
In a business that has a profit orientation, tough decisions are necessary. The Wisconsin plant has to uptake some changes for the reason of enduring the competitive business environment (Daft 76). The required change is internal. The people and the culture of this organization have to change. The management and the employees need to…
