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Read and answer question - Essay Example

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Oconomo plant is currently incurring losses contributed to by the high operational costs. In addition to the high operation costs, Oconomo plant is also situated in a third…
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Southern Discomfort Case Study What factors for change are evident at the Oconomo plant? The major factor for change at the Oconomo plant is high operational costs and reduced profitability. Oconomo plant is currently incurring losses contributed to by the high operational costs. In addition to the high operation costs, Oconomo plant is also situated in a third world country, an aspect that contributes to the reduced profitability, which remains an essential party of every organization and business. Over the years, a majority of the competitors are emerging to become more success with an increase in product quality as the main contributing factor. Both the organization and its shareholders need returns for their investments and when such is not achieved then change is inevitable.
2. What is the primary type of change needed- Changing things or changing the people and culture. Can the Wisconsin plant be saved by changing things alone, by changing people and culture, or must both be changed?
The primary type of change needed for Wisconsin plant is for people and culture. With some current Wisconsin employees telling of how their fathers worked for the same plant, calls for a change in the people. Once people get used to a place, they reduce the quality of production, which could be the contributing factor towards the competitors almost producing better quality than Wisconsin plant. It is also clear that Wisconsin employees are the most paid compared to the others. The culture of the union determining their pay should, therefore be changed too in an urge to reduce the plant’s high production costs.
3. What do you think is the major underlying cause of the Union’s resistance to change? If you were Jim Malesckowski, what implementation tactics would you use to try to convince union members to change to save the Wisconsin plant?
It is evidently clear that if no change is made, then the Wisconsin plant will have to close down due to the high operational costs. If I was Jim, I would dialogue with the union be telling them that if change was not achieved then the plant would close down. In the event that happens then all the employees would be jobless. In changing to a save culture, the union members would benefit in that despite the reduction in their salaries, they would still retain their jobs, other than letting the plant close down leaving all of them jobless as a result of the high operational costs. Read More
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