Case #3 Southern Discomfort
1. what forces for change are evident at the Oconomo plant?
-The greatest force that drives the company to look for change is its high operational cost. The plant has so high operational costs that the company has been incurring losses instead of making profits. The management is anticipating changes so that the company will make profits in the future. In order for a company to run successfully, it should realize some returns from the investment made at the plant. Having invested in the company, shareholders also expect return for their investment. It is important for the company to make enough money for the satisfaction of shareholders and the existence of the company in the market.
2. What is the primary type of change needed-changing “things” or changing the “people and culture” Can the Wisconsin plant be saved by changing things alone, by changing people and culture, or must both be changed?
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, people and their culture is the initial thing that should be taken into consideration. Another thing is that having changed peoples perception, competitors have no say simply because you will have drove the attentions of the market to your operations
#3. What do you think is the major underlying cause of the unions leaders to resist 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.