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... in the displeasure that they experienced. The new work design also created a pipeline that empowered the employees themselves to have a positive effect upon the composition of the groups, to which they were subjected. This also fit with the new philosophy that recognized that work is a large part of the employees lives (case 6). In this methodology, also an employee suggested idea, the workers [would] interview prospective hires.
This is an effective tool regarding team composition, because it serves to bring together like abilities, personalities, flexibility, and preference (Robbins 264 - 266). And, these factors are especially important to task-oriented groups, where people vary in their tolerance for ambiguity (Robbins 207). The employees were also involved in the training and orientation programs that were designed for the new hires. This further promoted cohesion within the composition of the groups that the new hires entered.
The hiring process further deviated from many normal hiring practices of other companies with the addition of vision type questions of potential hires. These questions which included Why do you want to work for Johnsonville, What would you like to be doing in five years and other questions that would show responses that would indicate specific personality traits. And, teams composed of highly extra version, agreeableness, conscientiousness, and emotional stability, according to the definitions applied to these traits through the Big-Five personality model, being regarded as having more productive performance shows the importance of these traits (Robbins 265). With a cohesive composition, the contextual concerns, which are the resources [and leadership] outside the group that are necessary to sustain it, can be accounted for (Robbins 267). The leadership and structure of the teams being headed by team leaders and composed of similar individuals, in fact, had allowed workers to develop new ideas for organizing the work and for new equipment that would make them more productive (case 8).
The contextual influence of performance evaluation and rewards systems also under went changes during this time period that sought to reward performance as well as group based contributions (Robbins 267), with the introduction of a company performance share (CPS) (case 12). And, while employees that had seemed to embrace the transition the greatest enjoying the ability to take on new responsibilities, whereas those who had not sought new responsibilities were less enthusiastic, people had began to question how decisions would effect CPS. The common threads of a visionary leadership and employee empowerment are found to be just as influential in the final category related to team effectiveness, which is process. Specific goals had been established through the combined efforts of the entire company, common purposes led to the lines helping each other out, new hires and designated team leaders displayed efficacy, and conflict levels and social loafing are all issues that were addressed to a large extent by the introduction of the new philosophy. Also, with the methods for hiring that had been implemented the challenge of turning individuals into team players was not an extreme point of conflict. The participative management that had allowed subordinates to share a significant degree of decision making power (Robbins 194) that is in part responsible for the emergence of effective teams, was reinforced by the changes in management that Ralph had made.
This is because his new style of management sought to delegate his responsibility and develop the capability of his people to work together to the extent that his [the managers] job virtually disappears (case 5). This was a change from running the company from the shop floor that, instead, sought to achieve goals through other people (Robbins 2). This helped to empower employees. And, by allowing employees to take responsibility they were also able to make correct decisions and contribute to the development of the company, thereby further causing employees to make it their own. To help accomplish the implementation of the new philosophy Ralph brought in people that could handle the type of responsibility that it required.
This structure involved bringing in new people to the three key positions that reported to him. Bob Salzwedel, managed finance functions, Russ Wiverstad, who was responsible for managing manufacturing organizations, and Mike Roller, who was responsible for sales and marketing. And, Ralph's dedication to the firms new philosophy was further displayed with Mike and Russ being hired after the unsuccessful attempts of the two previously hired individuals. This new structure led to Ralph being able to make the transition from being a merely effective leader to being a successful one (Robbins 6). In fact, Russ commenting on the transformation of the changes that Ralph had made said, When I joined the company, Ralph was making all the day-to-day operating decisions It took a little while for Ralph to develop trust and confidence in my abilities, but once he did, he delegated a lot of responsibility to means my job to keep him informed, not his job to ask me the right questions Ralph didnt have to delegate. He was doing it out of choice. (Case 8) And, this emerging structure was further solidified with Russ delegating to his subordinates, which led to the budgeting and planning that used to be done by the vice president now coming from the shop floor (case 8).
The compensation structure further solidified the new philosophy by a policy of no across-the-board wage increases. Initially the workers had been paid strictly on an hourly basis equal to the local average. However, with the new compensation structure, workers would only receive increases for an increase in responsibility (case 11). According to the expectancy theory, which focuses on three relationships; 1.
Effort-performance, 2. Performance-reward, 3. Rewards-personal goals, suggests that the firms decision to provide compensation in this manner was correct. The effort of the workers could lead to increased responsibilities, the increased responsibilities could lead to financial rewards, and that could lead to the realization of (Robbins 172) compensation [being] the bottom line of the company not profit (case 6).
The extent to which Ralph was willing to protect the philosophy of the company that had initially been opposed by many of the employees, however, had created a business that experienced its greatest growth after the new philosophy's implementation. And, by 1985 the company had grown to over $ 50 million in sales, with the return on equity growing from 18 % to 27 %. It was now a business that not only enjoyed an outstanding reputation but a market share that had grown from 7 % to that of 46 % in the greater Milwaukee area. It had also expanded to Iowa, Indiana, Illinois, Minnesota, and several other neighboring states (case 3).
However, during the period when there was no articulated plan that coordinated the growth that Johnsonville Sausage experienced, the quality of the product had gone down, the satisfaction of the employees had diminished, and had even caused Ralph to feel uncomfortable with the business. However, with the creation of the Johnsonville philosophy and the empowerment of the employees the company experienced a more efficient and substantial growth, once it had been implemented. Employees had taken on more responsibility and they were beginning to enjoy their jobs again. Ralph was also similarly effected by the new method of running the business.
The empowerment of the line employees and the management structure that empowered them was a crucial turning point in both the quality of the product and the quality of the work. It was crucial because it had created an environment where employees could own their work and the company. Therefore, the efforts to improve the company should be regarded as efforts to improve their own lives. And, because both product quality and employee satisfaction had been declining before the new Johnsonville philosophy had been implemented, suggests that to not continue implementing the participative-management that developed as a result would be bad for the company. Not only would it make the companys changes seem trivial, it would also be detrimental to the future of the company.
This is because the vision that was articulated to the employees, which portrays them as contributing members of the firm and not just its means to acquire profit would be undercut. The rational decision-making model consists of six steps; 1. Define the problem, 2. Identify the decision criteria, 3. Allocate weights to the criteria, 4. Develop alternatives, 5.
Evaluate the alternatives, 6. Select the best alternative. The problem, with which Ralph was faced, was the decision to take over the Palmer Sausage mid-western plant. The decision criteria are identified in the Johnsonville philosophy. Therefore, the best option available would be to retain the participative-management style and allow the employees to have a voice in the decision. This way the empowerment of the employees could be retained.
This will also keep the decision regardless of the outcome consistent with the philosophy that was previously laid out, where profit is the means to an end and not vice-versa (case 6). This is because in the Johnsonville philosophy the weights regarding the criterion that should be evaluated places the priority with the employees. To implement the existing infrastructure also has many other benefits. Many of which will be found in the ability to exploit the brainstorming abilities of all the different groups that have been formed collectively. The brainstorming that has previously been experienced has contributed to the purchasing of new equipment and new methods of production. Also, they have contributed the higher satisfaction that has been experienced by the workers satisfaction.
It also not only has benefits that will further solidify the infrastructure that exists, but it will be relatively easy to implement, because of the existence of the communication channels that already exist in this infrastructure. Through these channels that the firm has developed workers that have already conducted complex financial analyses and contributed to budget and sales organization and forecasting (case 9). Furthermore, in the last business plan the company collectively decided that they did not desire to push private label business over 15 %[so that they would not experience it] competing for capital with the rest of the business. This shows that the workers have already developed the skills that will be necessary to formulate a well thought out decision and its justification. If the empowerment of the employees or the vision is lost, then, not only will the existing organization be subjected to conflict that will arise from actions that contradict the philosophy, it will make it even more difficult to rebuild any loss of employee morale. The company also already running at a very high capacity would also be forced to push up plans that the company did not yet desire to engage in.
Therefore, the employees being designated the company in the vision should be allowed to have an influence in the companys future. Bibliography: Fundamentals of Selling Charles M. Futrell
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Research essay sample on Participative Management Decision Making
