In management, so many factors come into play for an organization to succeed.
Some of these factors include capital investments versus the anticipated returns from the venture. Labor is one of the key issues that determine how slim or how big the profit margin would be. Oconomo plant which was started in 1921 is in the verge of collapsing unless the headship takes stringent measurers to avert the collapse. It is always said that a healthy plant is dependent on healthy roots which is not the case with the oconomo plant. What forces for change are evident at the Oconomo plant? The high cost of labor and the failure of union leaders to listen to the request of management is a pointing lead that the organization needs urgent change.
The case of the oconomo plant first points an accusing finger to the high cost of labor. This is an indication that the initial analysis that was done on the feasibility of the business had loopholes or was not well done. And since it has been in operation since 1921, the management tactics failed to foresee the complications in good time. The clear indications for change are the underperformance of the organization. The high wages and the resistance of the unin clearly indicate the essence of change management.
What is the primary type of change needed- The primary changes that need to be done include changing people and culture. Changing things alone will not help since people are known to be the movers of the organization. Changing things might only lead to temporary solution. For the company to have long lasting solution, the culture and the people should be the first target. Good people can change to bad people hence the importance of changing the culture and people so that the employees can gear their effort towards sustaining the existence of the company (John, 2007).
Human beings are dynamic and I believe if they are involved in decision making and solution findings, they will work towards success of the company since they will own the decisions that are made rather than imposing things before reaching a consensus with them. What the company needs to do is to create conducive atmosphere with the union so that they can be ready to listen to them (Wesley, 2004). The failure of union listening to their plea is an indication of underlying problem of ineffective communication as well as ineffective leadership from the company’s headship. A good leader should be insspirational as well as being influential. The employees should be involved so that they can understand the risk that is ahead and by doing so, they are likely to collaborate with objective of saving the company since its closure will leave them jobless. What do you think is the major underlying cause of the union leaders' resistance to change? One of the key reasons as to why the union leaders have refused to change is because reduction in their salary will affect their lifestyle.
Naturally, human beings like to have an upward mobility and not the other way round. Also there is likelihood that they not been involved in decision making thus making them not to own the decision made by the management.What implementation tactics should be employed by Jim Malesckowski As mentioned earlier, the management should involve the union leaders in some of decision making process, communication should be improved as well as sought for the way forward from all stakeholders. By doing so, the union will perceive the importance of collaboration and working together towards a common goal.
