UNIVERSITY OF HOUSTON-VICTORIA
Victoria, Texas
Individual Assignment 2
MGMT 4325 - Organizational Change
Professor Rhiannon Smith, MBA
Jesus Benavidez
November 24, 2019
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People Alignment
In the case of Oshawa Industries (OI), it’s apparently there is a lack of effective implementation
of the organizations strategies and a lapse in goal tending. Mr. Talbot has a huge task ahead of
him that will take time and effort beyond more than a year. The current climate at OI is that of
“just get the job complete” with complete disregard to guiding principles of the parent company
Oshawa Holdings Limited (OHL). Their third principle, “an emphasis on quality for both
employee relations and products and services” is clearly not practiced at OI.
Executive Vice President Chet Wainwright is the technical leader within the company. His skills
and knowledge are well known and respected, however, he was failed in presenting this
knowledge in a constructive and educational aspect. Technical training is limited to the massproduced jobs, and any other technically constricting jobs are typically completed by Mr.
Wainwright.
Operations, procedures and techniques currently have no scrutinizing oversite, which has led to a
culture that accepts numerous and consistent injuries as normal for the industry.
Mr. Talbot has
seen firsthand that current middle management doesn’t follow the hierarchy, and they go over his
head when an answer is unfavorable to them. Upper management has no formal managerial
training to enhance employee productivity.
Reinforcing new behaviors
There are several issues with OI when it comes to organizational function. The employees have
some sense of organizational structure, however, upper management either undermines or
completely ignores the opinions of middle management. Dean Carter, the CEO of OHL has a
history of stepping into the shops and taking over. His involvement in the front-line production
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operation has created problems for the front-line staff. He also has a contentious relationship
with the unions, which also creates problem on the shop floor.
There are several upper level managers in which their technical expertise is lacking. The number
of long-term employees is large, and the pay structure is nearly even across the board. This
creates issues with promoting within.
OI has implemented only a few additions to its product line, even while the demand for
improved quality, reduced cost, and more environmentally friendly products were major
concerns for customers. Customers could install their own systems to offer the same services,
but the investment and safety concerns are better left outsourced to experts.
OI offers few if any differentiators in the marketplace, making the choice for customers easy to
switch.
Understanding Leadership
There are several issues with leadership within OI. First, the CEO Mr. Carter is a familiar face
on the shop floor of OI. Although this shows commitment by Mr. Carter to be engaged with
front line employees, he often undermines the lower leadership at the same shop. Mid-level
managers are undermined by Mr. Carter, or at least that is the perception from the front-line
employees. His issues with the unions create contention that the front-line staff observes and
most likely makes assumption about. Mr. Wainwright is a wealth of knowledge, but he keeps
much of it to himself. The procedures he has created is often miss read or difficult to understand,
which leads to operators taking their own steps to finishing the products. His time with OI is
also currently limited with his involvement with the other OHL plants. Mid-level managers are
undermined by Mr. Carter, or at least that is the perception from the front-line employees.
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Employees also choose to not congregate with each other for lunch or breaks. There is obviously
a disconnect between office staff and plant workers. There is no sense of community within the
company.
Going Green
OI has a poor track record when it comes to environmentally friendly processes. The plant is
currently operated by utilizing antiquated equipment from the mid 80’s that required little to no
environmental oversite. The aging building had chemical storage that was fair at best. Although
the ventilation system was recently replaced, the employees were still concerned that outside
climates still controlled the interior climate. This combination was not only bad for the
environment, there were several injuries that were directly caused by the noted above failures.
OI did have an environmental consultant evaluate the operations and facility, providing them
with an estimated cost that was well above their budget. OI settled with purchasing nearly all the
required equipment at cost with the intent to install and implement in house. The installation has
not been completed.
People Alignment
OI currently operates in a pattern consistent with driving your car under the speed limit.
Although it seems a though it’s okay to remain at this level, sometimes you must speed up to get
ahead. Mr. Talbot clearly identifies that there is a lack of motivation within the entire company.
The business strategies that are practiced at the other OHL facilities must also be implemented
and followed at the OI plant. There are many employees at the front line that have been with the
company for many years. It’s important to get feedback from them on their vision of the
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company. It could be where middle management is unable and or unwilling to share the
company’s goals.
To get a feel for the entire team, 360-degree feedback appraisals should be conducted by Mr.
Talbot that is facilitated by the third party. This can help identify those that are unwilling to
change or to accept change and are hindering the progress of the company.
Mr. Wainwright is the technical specialist in the company’s industry. Mr. Talbot should utilize
Mr. Wainwright as a consultant and begin creating training and operating procedures that are
favorable to increasing efficiency and technical knowledge with the rest of the team. Training
programs should be developed that give employees the opportunity to gain experience and
knowledge. Mr. Wainwright should be the knowledge center and not the work power.
Mr. Talbot should evaluate the current front-line management staff and determine if changes are
required. At this point, it seems that a few removals and replacements may be required to
change the overall culture.
Reinforcing new behaviors
The organizational structure within OI needs to be overhauled. First and foremost, the CEO Mr.
Carter must understand that his involvement at the production level in not conducive to a
structure organization. The structure in which should offer the best opportunity for the company
to succeed is a mixed structure. Mr. Talbot along with input from the entire company, should
develop product lines, and identify the functional areas of each of those product lines. This
structure is best in a complex external environment. The current market has several suppliers
whom all provide the same products but at different customer service levels. OI can differentiate
itself by providing high quality products along with the expertise to provide specialty products.
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Those that have been with the company for many years will understand how the production of
each product line will differentiate the production tasks. Separating the technical expertise will
ensure product perfection.
New technologies that reduce costs and provide safer operations for production should be
researched and implemented. The consistent numbers of injuries can be reduced by updating the
antiquated equipment. Incentives for safety should also be implemented to encourage safe
practices and the discourage ignoring written and prescribed procedures.
Understanding Leadership
Mr. Carter does care for the company, but he treats all levels as his personal staff. He must
separate himself from the plants and focus on the big picture items. He must be willing to
facilitate the needs of the plant while focusing on developing and communicating a new focus.
His relationship with the unions must develop into a more constructive relationship, where both
the employee and the company are satisfied with the decisions.
Mr. Wainwright’s expertise is very important, and his knowledge must be shared. He must be
focused on training the newest leaders of the company in the planting area, where there is
currently a lack of front-line expertise. Operating manuals and procedures should be commented
on, and Mr. Wainwright can adjust those procedures with the front-line employees’ perspective
in mind.
Mid-Level management should make efforts to bring all employees together. The lunchroom
can be transformed into a lounge where all are welcome and feel comfortable. Potlucks can be
arranged so plant workers and office staff can co-mingle. Small rewards can be given, such as a
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dedicated parking spot for stellar employee of the week. Bringing everyone together into a
neutral space can encourage emotional bonding.
Going Green
The safety culture at OI currently is at a poor grade. The lack of proper ventilation alone shows
how management has no other concern than to make more money. This culture was be changed
to that of safe thinking and safe operating. Operating procedures must identify health hazards for
each operation, and all the ways to mitigate the danger. The infrastructure of the building must
be upgraded to newer higher quality systems to ensure long life and reduced or removed
corrosion.
OI having an environmental consultant provide an analysis was a great start. Purchasing the
equipment to make changes to reduce pollutants and waste was an excellent investment. The
failure to install this equipment in a timely matter is unacceptable. The investment of $200,000
will go to waste if the equipment is not installed. Efforts must be made to install this equipment
immediately.