The Lamprey Company’s Case

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Table of Contents

Introduction
Discussion
References

Introduction

Jim Maleskowski is the president of Wisconsin Specialty Products Division of Lamprey, Inc. that has a facility in Oconomo. The facility is presently faces the risk of closure after the company CEO asked for an evaluation of the facility’s operations. The company is weighing the option of moving the operations in the facility to Mexico where some of the problem the facility faces would be addressed. This paper will look at the profound effect this problem has on the company, Jim and the workers union. It will also look at the things that need to change if the operation is to remain in the Oconomo facility.

Discussion

Analyze and describe the issues faced by Malescowski and the company and the reasons for these issues

Jack Ripon the company chief executive officer asked Jim Malescowski the president of the Wisconsin Specialty Products Division of Lamprey, Inc. to carry out an analysis on the Oconomo plant in Wisconsin on possibility of keeping the facility operational or moving it to Mexico. After completing the analysis it becomes apparent that the there is many changes that need to be done. This presents a problem to both the company and especially to Jim who has grown accustomed to his workers.

From his analysis, he finds out that the company could be paying its workers $1.6/hr instead of the $16/hr they pay the Oconomo plant workers if they moved their operations to Mexico. His report clearly shows that the company has to close its Oconomo plant and move its operations. Jim has a good relationship with his workers and he is sympathetic about the possibility of them losing their jobs. He remembers of the stories the workers gave him of their grandfathers and fathers working in the plant.

However, his problem is less important than the problem that is facing the company. The company is facing high cost of labor in the plant and this is threatening the company stability. The workers union leaders have refused to compromise on the wages and job description and this only makes it harder for the company’s financial prospects (Vershinina & Kendrick, 2010). Due to the high operational costs, the company is finding it hard to counter the competition and it is almost losing its stand in the market where competitors were overtaking the company in terms of price and quality.

Describe a strategy for changing people that would help resolve the situation at hand

If the company is to have the Oconomo facility continue operations then several strategies should be adopted in both operations and the people. Keeping the plant in Oconomo, means that the company and the union offer feasible actions of change to resolve the problems that are facing the facility. There is need for an organizational change in the company. This should begin with a transformational change that would see the problems that are facing the facility being evaluated and the opportunities presented by the operations.

It should important to note whether the change needed is in the “things” or “people and culture” or both (Weihrich & Koontz, 2010). In curbing the competition, that the company is facing from competition the company should look at the various things that may be changed or improved to make the company more cost effective. This would include looking at the things that need to be changed in relation to technology, products, structure, and the work place culture. One of the examples that the company had advanced should be revisited.

The company had proposed that they have a cell-manufacturing branch where the workers would be cross-trained to work on up to three jobs. Though the union at first shot down the idea they need to review it as this would help in making the facility both profitable for the company and the workers would still have their jobs. In the people aspect, the union should change its attitude towards the company and be ready to make compromises if the Oconomo facility is to remain operational.

Put yourself in Malescowski’s place and discuss the arguments to present to the union

Malescowski could apply several approaches when he gets into discussion with the union. The best approach would be to present to them the advantages and the disadvantages that either move would have (Cooper & Burke, 2005). This would be important if they are to reach a compromise where both the company and the union feel comfortable with the terms.

	Taking the plant to Mexico	Having the plant in Oconomo
Advantages for the management	The operation cost would go down. The workers would be paid $1.60 from $16. This would be an immediate response to the escalating cost of production.	The company would retain its loyal and trusted workers Because its market is in the country this would maintain the low shipping costs compared to moving the plant to Mexico There is a higher chance of innovation owing to the many highly experienced workers.
Advantages for the workers union	The workers would have maintained their integrity in regulating the labor rights and demands of workers. They would not have succumbed to the company’s “demands”	The workers who are protected by the workers union would still maintain their work. The relationship between employer and employee would be maintained and strengthened.

After presenting this advantages for the company and the workers union then both parties would be in a better position to make their demands heard and would offer a basis for negotiations (Worley & Cummings, 2009).

References

Cooper, L., & Burke, R. (2005). Reinventing human resource management: challenges and new directions. Australia ; Mason, OH : South-Western/Cengage Learning.

Vershinina, M., & Kendrick, D. (2010). Management-International Edition. Andover, Hampshire : Cengage Learning EMEA.

Weihrich, H., & Koontz, H. (2010). Essentials Of Management. New Delhi : Tata McGraw-Hill.

Worley, G., & Cummings, T.G. (2009). Organization development & change. New Delhi : Tata McGraw-Hill.

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The Lamprey Company’s Case

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