1. “DISSASTISFACTION and DECLINING MORAL
in SELF-DIRECTED WORK TEAMS”
MBA 435 Organizational Behavior
TELEREACH

2. Scope
• Company Background
• Case Brief
• Issues
• Application of Behavioural Theories
• Recommendations

3. Company Background
• USA-based company
• Manufacture gadgets for Telecom Industry
Global
market US $750
share million
Market annually

4. Company Background
• Factory in Flagstaff, Arizona
 3,000 non-union
member workers
 high premium wages
 staff turn-over rate
of 2%
 competitors staff
turn-over rate 25%
 46-year-old factory
operating 7 days/wk.
Industry Leader in
• PRODUCT QUALITY
• CUSTOMER SERVICE
• TECHNOLOGICAL INNOVATION
•ENVIRONMENTAL CONCERNS

5. • Advancements in global Technological
Innovations created a demand for the
company’s products.
• Production line set-up in the factory was
outdated and time consuming.
• Company decided to create a new
“centralized” Production line to enhance
productivity and meet global demand.
• Implemented a Prototype project.
Case Brief

6. Case Brief
• 7 months later, new factory opened in Lake
Charles, Louisiana
 Manufacturing
“high volumes” of
standard
components
 Self-directed
teams consisting of
160 cross-trained
workers

7. TWO MAIN Characters in the Case
Case Brief
TOM MARTIN
Manager
Lake Charles Plant
BILL EDWARDS
Manager
Flagstaff Plant

8. Issues
PROBLEMS at LAKE CHARLES Plant
• Selection process too comprehensive and time consuming
• Bad Management structure with limited HR skills
• Supervisors assuming “dual” roles
• Poor communication between Management and Cell teams
• Absence of Steering Committees & meetings
• Factory’s rapid growth & reshuffling of teams
• Lack of team training & staff development
• Effect on compensation packages
• Lack of team involvement
• Lack of Awards for achievement
• Unfavorable work-shift structures
1. Why were manufacturing and production cell
team members in Lake Charles discontented?

9. Lake Charles Organization Chart
Source: BUSINESS CASE JOURNAL

10. Issues
2. What should Tom Martin do to address the
problems that were causing the discontent in
Lake Charles?
Source: GOOGLE

11. Issues
2. What should Tom Martin do to address
the problems that were causing the
discontent in Lake Charles?
Proposition under Herzberg’s 2 Factor Theory (1959)
• only a challenging job that has the opportunity for
Achievement, Recognition, Advancement, and Growth will
motivate a person.
JOB CHARACTERISTIC MODEL - Hackman & Oldman (1976)
• supersedes the 2-factor theory by introducing 6 new
variables more practical and applicable in today’s modern
work environment.
1. Human Resource Management
2. Ergonomics
3. Organization Culture
4. Leadership Style
5. Human Performance Improvement (HPI)
6. Workplace Spirituality

12. Issues
2. What should Tom Martin do to address
the problems that were causing the
discontent in Lake Charles?
Source: GOOGLE

13. PROBLEMS at the FLAGSTAFF Plant
• worker’s were disillusioned
• used as “guinea pigs” as the prototype plant
• stuck in the cell
• no opportunities for advancement/promotions
• high expectations not met
• lack of consultation from Management
• decline in team’s decision-making power
• team conflicts arising out of laxity
Issues
3. What should Bill Edwards do to address
the problems that were causing the
discontent in Flagstaff?

14. Issues
3. What should Bill Edwards do to address
the problems that were causing the
discontent in Flagstaff?
Source: GOOGLE

15. Issues
3. What should Bill Edwards do to address
the problems that were causing the
discontent in Flagstaff?
Source: GOOGLE

16. When introducing self-directed work teams in to an
organization, what can managers do to circumvent
the problems TeleReach experienced?
• Increased communication with team members
• Regular team meetings to discuss issues
• Equal opportunity for employment
• Removing some controls while retaining
accountability.
• Set Strategies and Organisational Objectives
• Greater team involvement in decision making

17. Team Building
Source: GOOGLE

18. Recommendation
Imply Douglas McGreagor's “Theory Y” Management system
• a participative style of management which “assumes that
people will exercise self-direction and self-control in the
achievement of organisational objectives to the degree
that they are committed to those objectives”.
• Introducing Rewards system will result in employees’
loyalty and commitment to the organization.
• Improve on Organizational Structure
• Communication and Regular Staff Meeting
• Organizational Strategies and Objectives

19. • High employee morale increases productivity, as well as
reduces employee turnover rates, decreases employee
complaints, and improves job satisfaction
• These benefits to the organization include a more creative
work environment for productivity to increase, which will
result in higher employee performance, and an increase in
employee retention.
• Creativity, resourcefulness and innovative potential of the
employees can be utilized to solve organizational
problems.
Conclusion

20. We welcome any Comments or questions?
Questions?