1) What forces for change are evident at the Oconomo plant? (5)
The forces for change that are evident at the Oconomo plant are the callenges dealing with high labor cost. As a result Lamprey is deciding to lower wages from $16 to $1.60 per hour. Also the union and Oconomo are disagreeing with this new change taking place with the wages.
2) Which of the forces in force-field analysis do you think would be more powerful than the other in this situation?
Between the two forces I think the Driving Force would be more powerful than the other in this situation. The greatest force that drives the company to expect change is that it’s operating at a high cost and instead of giving returns it’s giving out loses. As a result, the aim of the company is to make changes so that it can appreciate profits in the future. In additional to there being high cost the thing that needs to be understood is that in order for the company to meet its operations it must realize some of the returns from what it has invested.
Having invested in the company the managers and shareholders should expect that the company is going to provide sufficient returns which will be shared and at the same time enable the company to stay in the market. There also exist the risks of the competitors who are in the market currently. For the company to make it in the market, it must change its working conditions so that they fit with the current market situation.
Another problem is the workers point of refusing to cooperate. The company is planning to reduce the amount of pay it’s going to provide to its workers with a significant drop. This is a great problem which workers are not ready to accept the desired change of the company. Another force for change is that competitors are in the market and of late they have threatened the company from the services and products that they are providing to the society. Quality is one thing that the company should look at so as to retain its market segment else the upcoming companies will outperform the company.
3) What is the primary type of change needed – changing “things” or changing the “people and culture”?
The primary change that is appropriate at the moment is changing the people and their culture. The reason as to why changing people and culture is of importance to the company is that having changed people all other things will work accordingly. People’s culture is of importance in the way the company operates simply because if the culture or people fit in the objectives of the company then all other things will be in place. People are the main target of any given business set up. This means that in changing anything that is in respect to the company’s operations then the people and their culture is the initial thing that should be taken into consideration. Another thing is that having changed people’s perception competitors will have no say because you would have drove the attentions of the market to your operations.
4) What do you think is the underlying cause of the union leaders’ resistance to change?
Union leaders are resistant to change due to a single reason which the company is reluctant to handle. The reason as to the resistance is that Oconomo plant has plans to provide workers with less wages which they feel they cant live within that budget. Looking at some companies which are emerging, union leaders are not ready to accept the change simply because those companies are giving out wages which are high and the quality of services and products that they have is almost outdoing the one Oconomo plant is providing. Jim has a hard time of convincing union leaders on what should be done. What he is supposed to do is to give union leaders the risk behind getting a new job if they lose the one they have. There are so many people in the town who are looking for job. Also, he should convince them to work as the negotiation is being carried out for a better change. There are benefits that workers get from the company and if they resign, such as medical and insurance benefits, then they will no longer get until they get another job.
Courtney from Study Moose
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