The Al Mond Company - Case Study Example

The Al Mond Company Customer Inserts His/Her Name Customer Inserts Grade Course Customer Inserts Tutor’s Name 27th December 2012 Introduction The Al Mond Company produces small rubber car parts such as brake boots and clutches. The company then sells these products to car company assembly plants. The products are later used on new cars and trucks. The Al Mond Company has one plant with Mohammed Al Mond as the president and Joe Smith as the production manager. There are three supervisors in charge of the company’s three production shifts. The company has been able to operate six days a week in order to cope with the increased product demand. The external environment is a challenge to the company. For example, the cost of production and labor costs affect the company’s profitability. The Al Mond Company has been forced to increase its employees in order to increase production and to keep up with the increasing product demand. Some of the issues being faced by the management are capital limitations. Al Mond Company does not have sufficient funds to acquire new production equipment as well as to expand its present plant. This is limiting its production capacity given that the current market demand is rising. Additionally, the company is being faced with a challenge of maintaining efficiency given its current production capacity. Therefore, Mr. Al Mond Mohammed hired Linda Bennet, a production analyst in order to see if the company could achieve greater efficiency with current production facilities (Herbert, 2012, p.1). The aim of this paper is to study and examine the issues facing the Al Mond Company and to recommend methods of improving the company’s efficiency and performance. Key facts and clarification of the main issues When Ms. Bennet was hired at Al Mond the company’s production process was streamlined in order to improve efficiency. This was done by reassigning duties to more workers. Therefore, every production was assigned to a particular worker. This is different from the previous production process whereby one worker would run the entire production process (Herbert, 2012, p.1). The company’s production output reduced in the first and second shifts. However, production in the third shift remained relatively the same and continued to meet the expected production capacity. The workers in the first shift were of relatively the same age and they were supervised by Cleverson Anthony (Clev). Clev did not find much motivation to work because he had a huge sum of inheritance from his late brother-in-law. This could have affected the motivation on the other workers. Additionally, the workers felt dissatisfied with the wages. This is because they felt that they had made the company what it is yet they did not receive many benefits from the company’s profits. Therefore, they reported late or left early from work whenever they got the chance. Failure to socialize could have resulted to reduced ideas which could have resulted in to the success of the new production process. Demotivation and isolation might have affected the employee adoption of the new production process (Herbert, 2012, p.1). The second shift was supervised by Norm Leonard, a 54 year and a former retiree who had insufficient experience in the production process. Leonard and his experienced 12-men team did not exactly connect with one another. For example, the workers opted to seek consultation from Jim Fask, a senior co-worker, about machine operations. Therefore, when Fask was reassigned to be a mechanic and a shift set-up man he could no longer offer the desired advice to the team. Additionally, Leonard followed the new production plan to the letter. This meant that there was no room left for extra ideas. These factors must have resulted to the reduced production in this shift (Herbert, 2012, p.1). The third shift was led by 29 year old Bob Jackson, an ex-Army Marine. He had a team of regular employees commonly known as “Jackson Five” and seven temporary college students also known as “Magnificent Seven”. The entire team was very cooperative and they supported one another. Jackson also supported his team whenever there were mechanical issues. Additionally, the team familiarized with the production process. For example, when the new production plan was put in place Bob notified the workers about the changes and they all agreed on the new work schedule. The level of cooperation in this shift resulted to improved production. Additionally, Jackson encouraged ideas from the workers. These ideas were meant to ease production and reduce production time. Jackson and his team would make up for downtime by spending some lunch time on the job. The level of cooperation, coordination and sacrifice in this shift resulted to improved production (Herbert, 2012, p.1). Changes that took place at Al Mond Company and factors that contributed to the difficulty in implementing them Al Mond’s entire production process before Ms. Bennet was handled by each individual worker. The only raw materials for the manufactured goods are rubber sheets. Every worker used to pick up his or her own rubber sheet, cut it to fit a given product and transport the material to a steam-fed curing press. The same worker would place the cut material on the press and activate the press for the five-minute curing process. The five-minute window enabled the worker to trim the excess rubber and finally the worker would transport the 10 to 12 boxes of produce to the shipping section. The workers were paid on hourly basis. Ms. Bennet changed the previous production method in to mass-production format. This meant that different workers would be involved in the production process. Therefore, there were separate workers for preparing the raw material, cutting it, transporting it to the curing press and moving the finished products to the shipping area. Additionally, there would be a different worker for trimming the excess rubber and placing it in boxes ready for shipment. A different worker would the place the steel sheets in to the press, activate the press and remove the parts on to the conveyor belt. The workers would be paid on a piece-work system. The aim of the proposed production system is to increase motivation as well as production (Herbert, 2012, p.1). There were difficulties in implementing production changes. This was due to poor coordination and cooperation. For example, the workers in the first shift were complaining that products were not being prepared in time for the next production process. This resulted to reduced output in the first shift. Poor cooperation and coordination also affected performance in the second shift. For example, Norm Leonard, the team’s supervisor failed to connect with the employees such that they sought technical support from a senior co-worker (Herbert, 2012, p.1). Employee motivation also made it difficult to implement the new plan. For example, the workers in the first shift felt that the company did not appreciate their effort and contribution. Therefore, the team reported late and left early from work whenever they had the chance. This attitude reduced the commitment that was necessary in ensuring the success of the new production process (Herbert, 2012, p.1). Problems in communication, motivation and leadership There was poor communication between the supervisors and the workers. For example, Cleverson Anthony, shift one’s supervisor relates easily with Joe, Bob and Fireball but the rest of the workers do not socialize with one another. Additionally, Norm Leonard, shift two’s supervisor does not communicate freely with his team (Herbert, 2012, p.1). The workers in the first shift are demotivated. This is observed from their decision to report to work whenever they feel like. This is because they feel that the company does not appreciate their effort. They feel that the Al Mond Company owes its success to them and that they deserve to be paid more than what they currently earn (Herbert, 2012, p.1). The Al Mond Company is experiencing leadership problems. For example, Norm Leonard, the supervisor in the third shift offers little technical support and advice to his workers. Additionally, Cleverson Anthony, the supervisor in the first shift does not play a good role model as leader. This is because he stretches holidays by taking a day off before or after the holidays. This he does under the assumption that the department can run itself. Instead of spending the official time identifying growth opportunities, he spends most of his time talking about places he would like to go to retire (Stephen & Mary, 1999). The role of informal groups in the Al Mond Company Informal groups are interlocking social structures that rule how employees work together. They also refer to behavior, interactions, personal and professional connections that enable work to be done. These groups are formed because people are friends, or because they share common interests. Workers in the three shifts were brought together by their interest to work for the company. This blend with the formal settings such as Ms. Bennet’s production plan creates a better working environment (Inigo & Jahan, 2010, p. 1). Informal groups also lighten or ease organizational workload by having various opportunities to solve problems. For example, the workers in the third shift meet to discuss the best way to implement the new production process (Inigo & Jahan, 2010, p. 1). However, the same informal groups are responsible for demotivating one another. For example, the workers in the first team have managed to infect one another with the belief that the company does not appreciate them. The workers in the third shift seem to have ganged up against Ms. Bennet’s new production plan because it is a product of a woman’s ideas. This, Norm believes, is the reason behind the shifts reduced performance (Inigo & Jahan, 2010, p. 1). Advice on what the company could do to improve performance and increase output. The Al Mond Company should hold an open forum between Ms. Bennet, the supervisors, the production manager, the managing director and the workers. The meeting should aim at addressing the challenges that the workers are facing with the new production plan and their relationship with their seniors. This would reduce the attitude that the workers have towards the company and the new production plan. The company should also explain to the employees the benefits of adopting the new plan. They should be made to understand the benefits that the plan has, not only to the company, but also to their personal lives (Ash, 1992). The concepts and theories that explain the issues, problems and answers to the case questions The classical scholars believed that there is a single best way in which an organization could be structured. However, organizations are structured differently. For example, Ms. Bennet believes that her plan should work for all the shifts yet every shift has its own way (informal or formal) of working. This has resulted in the failure of the new production plan in the first two shifts (Pomsuwan, 2007, p. 6). The contingency theory on the contrary, is based on the fact that there is no single best way to organize. The theory also states that differentiation in terms of departments and job titles increase with size while administrative positions reduce with size. Therefore, the workers in the Al Mond Company are more than their supervisors. This has resulted to communication, motivation and leadership gaps within the company. The same theory advocates for mass production among companies that sell huge volumes of similar products such as car parts (Kibiya, 2012, p. 1-13). This concept has resulted to emergence of informal groups in order to create coordination and cooperation. However, unit production or production in small batches would work better for this company. This is because this strategy best suits flat organizations (organizations with few levels of hierarchies) and organizations with low managerial control. Poor choice of organizational concept played a role in poor implementation of the new production plan (Borgatti, 1996, p. 1). The best and most accurate answer possible to the case questions The Al Mond Company should opt for unit production/small batch. This production process is a product of the contingency theory that fits a flat organization like the Al Mond. This concept appreciates people’s skills and knowledge and would reduce the negative attitude of the informal groups. Additionally, this production process would reduce routine and boredom among supervisors such as Cleverson. Application of this production concept in addition to Ms. Bennet’s ideas would improve efficiency and performance within the company. References Ash, M.G. (1992). Cultural Contexts and Scientific Change in Psychology. American Psychologist, 47 (2), 198-207. Borgatti, S. (1996). Organizational Theory: Determinants of Structure. Retrieved from http://www.analytictech.com/mb021/orgtheory.htm Herbert, T.T. (2012). Case Study: The Al Mond Company. Retrieved from http://www.commerce.adelaide.edu.au/current/ug/professional/comm/pdf/1_7_case_analysis_reports.pdf]   Inigo, M. & Jahan, F. (2010). How Important are Informal Groups in organization? Retrieved from http://www.articlesbase.com/management-articles/how-important-are-informal-groups-in-organization-2641061.html Kibiya, A. (2012). Informal Groups. Retrieved from http://www.google.com/url?q=http://sct.emu.edu.tr/gursev/CSIT362%2520LECTURE%2520NOTES/INFORMAL%2520GROUPS1.ppt&sa=U&ei=SZLbUMfWI86LhQeh14CABg&ved=0CB4QFjAD&usg=AFQjCNFgj4MXdTBzuGtGzM6T2NpbtsgLBg Pomsuwan, S. (2007). Organizational behavior: theories and concepts/ Suthinan Pornsuwan. Retrieved from http://bupress.bu.ac.th/ebook/mba/ba511_Suthinan.pdf Stephen, R., & Mary, C, (1999). Management. United States, Prentice Hall International Inc Read More