Case Analysis chpt 10 National
Case Study (pages 421-423)-Implementing Change at National Industrial Products
Daniel Post
Sullivan University
MGT364-Analysis of Management Systems
November 23, 2014
EXECUTIVE SUMMARY National Industrial Products is a company that produces mechanical seals and pumps as well as other flow-control products. The company has been run by Jim Carpenter for the last thirty years. Carpenter was a very well-liked leader who had worked hard to cultivate a very good relationship with his employees. Not only did he treat them with respect, but he also trusted them to do their jobs to the best of their abilities. He went out of his way to ensure that these employees were taken care and emphasized a family atmosphere. He was a hands-on leader who stood at the bedside of sick employees, organized company parties, and found work for them instead of making layoffs. In return his employees would go above and beyond for Carpenter when the situation called for it. Company morale was at a high. Despite high morale and well-liked leadership, National Industrial Products began to suffer. Several competitors were overtaking the company and National was had to do something quickly. Business was beginning to fall and it got to the point that National was acquired by another larger company called Simpson Industries. The new company’s CEO blamed Carpenter’s easy-going attitude and forced him to retire. His replacement was a young man named Tom Lawrence. Lawrence had a reputation for turning things around and making them successful in a fast way. Immediately Lawrence cut out all social functions, and made it clear that anyone who was not willing to pull their weight would be let go. He fired employees who did not correct mistakes within a two week period, and he called the employees who complained “crybabies.” For those employees who succeeded they were rewarded with bonuses and raises. Thanks to his drastic leadership style change, the company immediately saw
Daniel Post
Sullivan University
MGT364-Analysis of Management Systems
November 23, 2014
EXECUTIVE SUMMARY National Industrial Products is a company that produces mechanical seals and pumps as well as other flow-control products. The company has been run by Jim Carpenter for the last thirty years. Carpenter was a very well-liked leader who had worked hard to cultivate a very good relationship with his employees. Not only did he treat them with respect, but he also trusted them to do their jobs to the best of their abilities. He went out of his way to ensure that these employees were taken care and emphasized a family atmosphere. He was a hands-on leader who stood at the bedside of sick employees, organized company parties, and found work for them instead of making layoffs. In return his employees would go above and beyond for Carpenter when the situation called for it. Company morale was at a high. Despite high morale and well-liked leadership, National Industrial Products began to suffer. Several competitors were overtaking the company and National was had to do something quickly. Business was beginning to fall and it got to the point that National was acquired by another larger company called Simpson Industries. The new company’s CEO blamed Carpenter’s easy-going attitude and forced him to retire. His replacement was a young man named Tom Lawrence. Lawrence had a reputation for turning things around and making them successful in a fast way. Immediately Lawrence cut out all social functions, and made it clear that anyone who was not willing to pull their weight would be let go. He fired employees who did not correct mistakes within a two week period, and he called the employees who complained “crybabies.” For those employees who succeeded they were rewarded with bonuses and raises. Thanks to his drastic leadership style change, the company immediately saw
References: Daft. R. (2013). Chapter 10-11: Organizational Culture and Ethical Values; Innovation and Change. Organization, Theory & Design. Chpts 10-11. The RSA. (Apr. 1, 2010). RSA Animate - Drive: The surprising truth about what motivates us. YouTube https://www.youtube.com/watch?v=u6XAPnuFjJc