Hovey & Beard

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  • Topic: Attrition, Employment
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  • Published : August 24, 2012
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Case Study
Hovey and Beard Company

I. Background of the study

The Hovey and Beard Company is a manufacturer of various kinds of wooden toys. Process of activities includes spraying paint on the partially assembled toys and hanging them on moving hooks which carry them through a drying oven. Staffed entirely by women, this operation is plagued by abseteeism, high staff turnover and low morale.

II. Statement of the problem
What could the company do to improve morale and create a long-term sustainable productivity to the factory?

III. Objectives

• To identify improvements in labor planning particularly maintaining adequate training, support and employment or staffing levels. • To identify improvements in job design specially in motivation, incentive systems, method analysis and work environment. • Create a structured approach for a sustainable productivity.

IV. Assumptions

1. The top management’s goal is to maximize the newly re-engineered work structure of the paint shop.

- Let us assume that the engineer is expecting that the re-engineering in this department will have a significant impact to the overall process of the operation that’s why out of all the department this was given direct attention. (ex. Save idle time, continous workflow and higher productivity)

2. Lack of proper execution of business re-engineering implementation

- Key indicator is: output produced by an employee. Key indicator is used to be able to measure if the design by engineer is utilized. But after 2 months of training performance of the worker’s is lower than expected therefore the design’s purpose has not been executed properly yet or there is something lacking. (ex. speed modification of hooks, part I)

3. The management is result driven by short-term organizational goals. They conduct meetings to discuss employee problems but neglect to analyze the possible implications/cost of an action. Hence company is more tactical than strategic.

- After several meetings the engineers (grudgingly) unwillingly granted to try the women’s suggestion to change speed variation in their favor, which caused additional workload to other departments “After considerable argument and deliberation by the engineers, it was agreed to try out the women’s idea” (Part II)

- Caused inequity to other factory workers, the women are earning more than anticipated (Part III)

- Revoking bonus after successful dry-run lead to 75% of worker attrition in the paint shop. (Part V)

4. There is dispute/coordination problem within decision makers (top management) that should be resolved.

- Because of growing irritation between superintendent, foreman & engineers, a decision was implemented without consulting the employees to revoke bonus (Part V)

5. Employee motivation has a direct effect on production which was not effectively addressed.

- The women were jubilant because working conditions improved. Women maintained time-study set for them. (Part II)

- Women are operating 30-50% above the level that had been expected under the original arrangement. (Part III)

6. Demotivation was caused by employee’s basic needs not being met (pay & working condition).

- Neglected proper computation of incentive rates and inability to provide proper working condition (problem on ventilation) (Part I)

7. Hovey and Beard Company has no budget constraints on its manufacturing plant operation.

V. Areas of consideration

• Change management process
• Staffing through training and development
• Controlling the performance or comparing actual progress with planned performance • Directing and motivating people to perform to attain...
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