Course project, 2013

1. “Elements of Management”
Case Study: Introduction of Computerized Warehouse Technology
Zoi E. Fountzoula
Nick T. Nanas
Aneza A. Pantaleon
John N. Skianis
Peter J. Stavroulakis

2. Introductory Presentation of the
Case Study
Spare parts warehouse of
a manufacturer of heavy
equipment
Until recently the
warehouse was working
manually

3. Managers decide
to install a fully
automatic and
computerized
system in order
to increase
productivity

4. The system is expected to:
•
•
•
•
Minimize waste
Optimize resources
Save time
Save money

5. What happened:



First month productivity
increased more than 100%
(as expected)
The operator's work
became easier and safer
No worker had been
redundant, however on the
contrary salaries had
increased

6. But at the third month after the
implementation of the system:



Errors start creeping
into the system
Absenteeism
became a daily
phenomenon
Examples of what
appear to be
sabotage

7. The automatic system appeared to
be less efficient than the old manual
system
•A big investment
eventually seemed not to
be viable
•Workers seem to lack
synergy with the system
•Productivity instead of
increasing, eventually
decreased

8. Since the system has been widely accepted by
industry and simultaneously was performing
properly at the beginning of its
implementation, it cannot be accused for the
damages

9. “Deliberate absenteeism is typically an
intentional act in which the employee
rejects a given work situation”

10. This fact, in addition to the situation in
which the employees were not given
adequate
information
about
the
eminent changes in their work reality,
the hint that the number of workers and
machinery will diminish (along with the
evidence of sabotage) lead us to
believe that the system is being ...

11. ...sabotaged

12. With the underlying causes:




Fear of redundancy
Powerlessness
Fast change in work
processes that created
psychological imbalance
in employees
Inefficient training and
information about the new
system

13. Leading to OMB Type D:
• Damaging, destructive and/or disparaging
behavior committed intentionally

14. Solutions
1. Management has to assume responsibility
for the lack of informing employees and
take preventive action against similar
instances in the future

15. 2. Management has to inform employees
about the changes in their work
situation, to reassure them that their jobs
are not at stake, and that the new system
is not an enemy

16. 3. Improve the efficiency of communication
between the company and the union in
order to avoid misunderstandings and
communication failures

17. 4. Perform an inquiry in order to identify
deviant or potentially dangerous
behavior of staff (managers and
employees) in the future

18. Thank you for your attention!