The Goodman Company Case Study Example

Introduction

Goodman Company is an organization that specializes in manufacturing and selling various rubber automotive parts to car and truck assembling plants. Its management hired a production analyst to scrutinize its operations and instigate changes that would improve its functionality and productivity levels. Although the changes had a positive impact on some units, it had negative consequences on others. A close analysis reveals that the variations in the effect of the modifications emanate from distinctive aspects in the production units, including the adopted communication strategies, level of motivation of the workers, and the effectiveness of the leaders. The presence or absence of informal groups was also a significant determinant of the successful adoption of the changes.

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The Changes that Took Place at Goodman Company

Change in Production Process and Job Description

The production analyst instigated two critical changes in the organization. Firstly, she modified the production process and altered the workers’ duties. The organization adopted the mass preparation of all the raw materials required in the organization. Subsequently, each worker was assigned a specific task in the production process, as opposed to the previous plan, where workers carried out all the production procedures singly. The modifications are significant because they increase the working pace in the organization (Wikaningrum & Yuniawan, 2018). It also reduces the expenses that the establishment incurs during production.

Change in Payment Systems

Another critical change enforced in the organization is the adjustment of the payment systems from hourly rates to piece work system. In the hourly rate remittance structure, the worker’s pay remained constant irrespective of their production level (Lazear, 2018). On the other hand, in the piece work system, the compensation that the employees receive would depend on the amount of effort they put into their work (Lazear, 2018). The new system was more beneficial because highly productive employees receive more lucrative remunerations.

Difficulties Encountered in Implementing the Changes

There were significant difficulties in implementing the changes in the company because some workers resisted the new operational structures and viewed them as unjust. According to Wikaningrum & Yuniawan (2018), many workers resist changes because of the fear of transitioning from familiar systems to those which are more complex. For instance, some workers blamed the new operating structures for the resultant decline in production levels.

Communication, Motivation, and Leadership Problems in the Organization

The main communication problems identified in the organization include the mixing of professional and personal issues. Subsequently, negative attitudes in some workers also impede the flow of communication in the organization (Wikaningrum & Yuniawan, 2018). For instance, the employees in the first shift felt that they were highly knowledgeable hence did not require any instructions. On the other hand, the motivation problems identified in the organization include failing to promote employees to a leadership level. For instance, when a production shift required a new supervisor, the management hired a new executive instead of promoting an existing worker. Additionally, there were no mechanisms for evaluating the effectiveness of workers in performing their stipulated tasks. Such omissions discourage employees from putting extra effort into their work (Wikaningrum & Yuniawan, 2018). It encourages procrastination among workers.

The leadership problem identified in the organization is weak leadership structures. The leadership styles adopted in the organization determine how workers perceive proposed changes (Wikaningrum & Yuniawan, 2018). For example, the supervisor in charge of the second shift manifested ineffective leadership skills in several instances. Firstly, he did not encourage innovativeness in the workers while implementing the new systems. Secondly, he showed a lack of confidence in the employees by continually watching them to determine whether they follow the new procedures.

Role of Informal Groups in Goodman Company

The informal groups present in Goodman Company are essential in several ways. Firstly, they help in the effective implementation of the proposed changes (Brinia et al., 2019). For example, the “Jackson Five” adequately incorporated the new systems by suggesting effective strategies for enforcing the proposed modifications. Secondly, the groups encourage the formation of endearing relationships between workers, which helps them to work together effectively as a team (Brinia et al., 2019). Further, they create a friendly working environment; hence, increasing the contentment of the workers.

Conclusion

The operational changes in Goodman Company aimed at improving its productivity. However, poor communication, lack of motivation, and inadequate leadership impeded their effective implementation. Therefore, the factors present in an organization determine how effectively organizational changes are adopted. Positive aspects, such as the presence of informal groups, aid in the smooth transitions into the modified structures, while negative factors act as impediments.

References

Brinia, V., Papadopoulou, G., & Psoni, P. (2019). The creation and the dynamics of informal groups. International Journal of Educational Management. https://www.emerald.com/insight/content/doi/10.1108/IJEM-09-2019-0340/full/html

Lazear, E. P. (2018). Compensation and Incentives in the Workplace. Journal of Economic Perspectives, 32(3), 195-214. https://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.32.3.195

Wikaningrum, T., & Yuniawan, A. (2018). The relationships among leadership styles, communication skills, and employee satisfaction: A study on equal employment opportunity in leadership. Journal of Business and Retail Management Research, 13(1). Retrieved on September 13, 2020, from https://jbrmr.com/cdn/article_file/2018-10-03-13-48-52-PM.pdf