Mr.Jaleel
Part 1: Case Study 1: Ancol Pty Ltd
By Steven L. McShane, The University of Western Australia
Paul Sims was delighted when Ancol Pty Ltd offered him the job of manager at its plant near Shepparton, Victoria. Sims was happy enough managing a small metal-stamping plant with another company, but the executive recruiter's invitation to apply for the plant manager job at a leading metal fabrication company was irresistible. Although the Shepparton plant was the smallest of Ancol's 15 operations across Australia and New Zealand, the plant manager position was a valuable first step in a promising career. One of Sims' first observations at Ancol's Shepparton plant was that relations between employees and management were strained. Taking a page from a recent executive seminar that he attended on building trust in the workplace, Sims ordered the removal of all time clocks from the plant. Instead, the plant would assume that employees had put in their full shift. This symbolic gesture, he believed, would establish a new level of credibility and strengthen relations between management and employees at the site. Initially, the 250 production employees at the Shepparton plant appreciated their new freedom. They felt respected and saw this gesture as a sign of positive change from the new plant manager. Two months later, however, problems started to appear. A few people began showing up late, leaving early or taking extended lunch breaks. Although this represented only about 5 per cent of the employees, others found the situation unfair. Moreover, the increased absenteeism levels were beginning to have a noticeable effect on plant productivity. The problem had to be managed. Sims asked supervisors to observe and record when the employees came or went and to discuss attendance problems with those abusing their privileges. But the supervisors had no previous experience with keeping attendance records, and many lacked the necessary interpersonal skills to discuss the
By Steven L. McShane, The University of Western Australia
Paul Sims was delighted when Ancol Pty Ltd offered him the job of manager at its plant near Shepparton, Victoria. Sims was happy enough managing a small metal-stamping plant with another company, but the executive recruiter's invitation to apply for the plant manager job at a leading metal fabrication company was irresistible. Although the Shepparton plant was the smallest of Ancol's 15 operations across Australia and New Zealand, the plant manager position was a valuable first step in a promising career. One of Sims' first observations at Ancol's Shepparton plant was that relations between employees and management were strained. Taking a page from a recent executive seminar that he attended on building trust in the workplace, Sims ordered the removal of all time clocks from the plant. Instead, the plant would assume that employees had put in their full shift. This symbolic gesture, he believed, would establish a new level of credibility and strengthen relations between management and employees at the site. Initially, the 250 production employees at the Shepparton plant appreciated their new freedom. They felt respected and saw this gesture as a sign of positive change from the new plant manager. Two months later, however, problems started to appear. A few people began showing up late, leaving early or taking extended lunch breaks. Although this represented only about 5 per cent of the employees, others found the situation unfair. Moreover, the increased absenteeism levels were beginning to have a noticeable effect on plant productivity. The problem had to be managed. Sims asked supervisors to observe and record when the employees came or went and to discuss attendance problems with those abusing their privileges. But the supervisors had no previous experience with keeping attendance records, and many lacked the necessary interpersonal skills to discuss the