University of Guelph-Humber,Toronto ON
Tompkins Case Book Volume 2
Total Quality Management (TQM) cannot be implemented in Panama if there is no employee participation. This problem exists due to an autocratic leadership style deeply imbedded in the organization. An autocratic leader believes that employees are dependent, hostile, unwilling to work, and need detailed plans at all times. Due to the above characteristics of this leadership style, TQM cannot be properly applied to Tropical Export Company. The first of the three most feasible solutions is to continuing to run Tropical Export Company with an autocratic leadership style, however to encourage participation and offer employees incentives. The second solution is to run the company with a Laissez Fair leadership style. This will allow the employees within the organization to settle problems themselves. The third solution is to change the culture from an autocratic style to a democratic style. This will allow the employees to give their honest input without fear of consequences. If they were to Continuing to run the organization with an autocratic leadership style with incentives given to those particular employees who efficiently practice TQM, a con will be distributive justice. This is when an incentive is not the amount of the reward which the employees feel is fair. A second con will be that incentives may cause conflict within the organization among employees and co-workers. The most important con is that earnings will vary from year to year; the problem is that this creates an unsteady cash flow therefore making it difficult for the employee to budget their money. A pro is that incentives are a motivation for employees to work harder. It would be a good idea to create a customizable incentive program which allows the employees to choose their benefits. The last pro is that it makes a clear link between organizational goals and individual...