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Contextual shaping in the origination,

implementation and uptake of manufacturing cells


Patrick Dawson
Department of Management Studies, University of Aberdeen, Aberdeen, Scotland
Introduction
This article presents a case study
examination of contextual factors in the
conception, uptake and operation of
manufacturing cells. The case material is
drawn from a longitudinal study of change,
which sets out to summarize the emerging
objectives behind the decision to adopt
cellular work arrangements, the history of
plant operations and the implementation
strategy of local management, and the
contextual shaping of workplace outcomes. A
major focus rests on the influence of human
elements in shaping the implementation of
plant-level configurations, employee response
to management change initiatives, and the
consequence of manufacturing cells for
employees' experience of work. A central
finding from the study is that various
contextual elements interlock and overlap
within an ongoing political process of
workplace change. These processes occur at
various levels within and outside
organizations and are central determinants of
decision making at notable critical junctures
during the process of cellularization. The
article concludes that, although it is possible
to identify a range of contextual factors which
shape outcomes, how these elements interact
and the influence which they have in practice
are also a consequence of the political
processes of change.
Manufacturing cells: the need for a
processual perspective
Manufacturing cells, using group technology
(GT) principles, enables alternative forms of
work organization which can simplify
material flow, reduce machine set-up time
and enable the formation of team-based work
groups (Alford, 1994). Since the 1980s, the
commercial benefits of adopting
manufacturing cells have been highlighted
(see, for example, Ang and Willey, 1984;
Ashton and Cook, 1989; Knight and Wall,
1989; Shtub, 1989) with manufacturers
increasingly looking towards alternative
methods for improving their competitive
position without having to rely on large
capital investments (see, for example,
Gallagher and Knight, 1973; Ham et al., 1985;
Opitz and Wiendahl, 1971). Studies carried
out by Wemmerlov and Hyer (1989) have
shown that the main commercial advantages
of adopting manufacturing cells rest on
reducing set-up times (by using part-family
tooling and sequencing) and flow times (by
reducing set-up and move times, wait times
for moves, and using small transfer batches)
which can serve to minimize inventory
stocks and market response times. In
conjunction with a number of cost-related
benefits, these new work arrangements are
still promoted as offering a ``key building
block'' towards more human-centred jobs.
According to Badham and Couchman (1996),
this combining of technical requirements
with a social system of semi-autonomous
workgroups has become celebrated within
Europe and viewed as a humane and positive
manufacturing work trend of the 1990s.
The main human resource objective
behind applying these principles (especially
within a number of European automotive
manufacturers, such as the Volkswagen
programme in Germany) has centred on
improving levels of employee job satisfaction
by breaking away from the individual-based
assembly-line-paced systems of job design in
developing more humane and group-based
forms of work organization (Gill, 1985). In
Sweden for example, the success of the work
redesign programme at their Kalmar plant in
the 1970s provided a practical example of
social technical systems (STS) theory (Trist
and Murray, 1993), which was further
supported by Uddevalla in the 1980s (prior to
their displacement in the 1990s). Since these
early achievements, one major criticism of
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[ 296]
Integrated Manufacturing
Systems
12/4 [2001] 296305
# MCB University Press
[ISSN 0957-6061]
Keywords
Cellular manufacturing,
Change management,
Organizational politics,
Case studies
Abstract
Data drawn from a longitudinal
case study of change is used to
examine contextual factors in the
conception, uptake and operation
of manufacturing cells. Attention
is given to the external context of
change and the importance of
internal factors, such as the
technical configuration of work,
and the culture and history of plant
operations, in shaping change
outcomes. In charting a number of
contextual dimensions, political
process is also identified as a
central element which overlaps
and intertwines with context.
Highlights how political process
and context are important in
shaping both the process of
change (for example, local
implementation strategy and
employee responses to change)
and change outcomes (for
example, operating practices
around the new cell
arrangements).
the STS approach has been that, while it
purports to view organizations as organic
open systems, key proponents of this
approach have tended to look inwards and
have consequently ignored the external
business market environment. In attempting
to overcome some of the limitations of the
STS approach and take context seriously
(both external and internal), a less
prescriptive and more theoretically informed
processual approach is advocated (Pettigrew,
1985).
Under the processual framework developed
in this article, the politics of change, the
substance of the change initiative and the
context in which change takes place are all
seen to influence each other within a complex
dynamic which happens over time (Dawson,
1994). In particular, this framework builds on
the importance of context and the temporal
interpretation and re-interpretation of context
as shapers in the design, implementation and
uptake of cellular forms of work organization.
Within this analysis, political process is
central (Knights and Murray, 1994) but, unlike
the remit of STS approaches (see Dunphy and
Griffiths, 1998; Badham, 1995), the aim of the
processual framework is to understand and
explain rather than to direct and influence
processes towards some preferred end point.
In formulating such a framework, change is
viewed as a non-linear complex dynamic
which cannot be categorized into a number of
predefined stages. Unlike sequential models
(for a critique of N-step models of change, see
Collins (1998), this processual approach is
concerned with studying processes (how
change unfolds over time) within the context
in which that change takes place. This
important contextual dimension includes
both the very localized elements of context
and broader contextual conditions, such as
the company consequences of a crisis and
decline in commercial activity within
segments of the world market (unlike the
tendency of STS theory). Moreover, in seeking
to develop a contextual explanation of change
at plant level, attention is directed to those
elements which are seen to have influenced
and shaped workplace outcomes (Dawson,
1996). It is understanding how this dynamic
occurs in practice and what we can learn
about the contextual shapers of change that is
a central concern of the case study analysis
which follows. But first, the research methods
used in the study are briefly outlined.
Longitudinal research and the
uptake of manufacturing cells
Research into the design and uptake of
manufacturing cells has been ongoing since
October 1989 and, in this article, some of the
findings from a longitudinal study into the
process of cellularization at a General Motors
(GM) plant in Australia are reported. The
automotive component manufacturing plant
was originally established in 1959 as part of a
new Australian automotive site established
at Elizabeth in South Australia. The complex
is the operational headquarters for GM's
operations in Australia and is one of the
main employers in the Elizabeth-Salisbury
area.
The experience of the small component
manufacturing plant cannot be fully
understood by simply reporting on the
implementation phase of the change
programme. Although this was the period over
which the main fieldwork was conducted, the
need to combine these data with a
retrospective analysis (through interviews
and the use of documents) soon became
apparent. For this reason, a number of key
players were identified and interviewed about
past events, current experiences (when
relevant) and future expectations. These key
players were seen to be critical figures in
shaping developments at the plant and hence
data from the interviews were analyzed in
order to construct a retrospective narrative
covering the broader historical process of
plant-level change. This involved travel
outside the organization (as many of these
``informants'' no longer worked for the
company) and, in some cases, necessitated
interstate trips. In addition, interviews were
conducted with employees in the plant before,
during and after the change to cell
manufacture. Typically, each interview lasted
around an hour (with one protracted
interview lasting over three hours!) and
covered a range of topics including their
experiences of change, current work practices,
views on supervision, concerns about group
work, and their perceptions and attitudes
towards the company, senior management,
local management, unions and their fellow
workers. In the repeat interviews, issues
raised in the first interview were used in
tailoring questions to particular interviewees.
A good record of formal meetings and the
written accounts of change were provided for
by access to company documents (including
e-mail transmissions with the collaborating
organization). Although these documents
were useful for dating specific events and
providing useful insight on the weight placed
on various issues, many of these documents
were also written and distributed for reasons
not articulated in the document itself.
Consequently, caution needed to be used in
making sense of the documents (for example,
author motives, hidden agendas and, the
[ 297]
Patrick Dawson
Contextual shaping in the
origination, implementation
and uptake of manufacturing
cells
Integrated Manufacturing
Systems
12/4 [2001] 296305
importance of what is not documented),
thereby highlighting the benefits of using a
combination of methods in collecting this
type of change data. In this case, the analysis
of documents and interview data was further
supported by observational notes on the
implementation process, which were made
during periods at the plant on the morning,
afternoon and night shifts.
This combination of observation with in-
depth interviewing enabled both the cross-
validation of data, and the integration of
contextual and temporal observations with
the more perceptional and attitudinal data
gathered from interviews. For example, in
this case, interview data had indicated that a
computer-based shopfloor scheduler was
being used by supervisors in the planning
and re-scheduling of daily work operations.
This information, which had been provided
by management (and some of the external
industrial collaborators), presented a version
of the way the system would ideally operate
and yet this did not align with observations of
the daily practice of shopfloor procedures (the
scheduler was only used in the initial set-up
of the cells and not for daily scheduling
purposes). This discrepancy between the day-
to-day practice of cellular manufacture and
the formal intentions and aspirations for how
the system would ideally work in practice
emerged from the observational work carried
out at the plant. On the basis of these
disconfirming data, further questions were
then formulated and asked in later
interviews. Thus, a major benefit of carrying
out research over time, which utilizes a range
of different methods, is that it allows for the
cross-validation of data and enables the
modification of research strategies in the
collection of further data (Dawson, 1997). In
the writing of the case study narrative which
follows, documentary analysis and the
material from the key informant and
shopfloor interviews are the main data
sources used.
The historical context of plant-
level operations: deteriorating
performance and the need for
change
Following the set-up of the plant in 1959, over
1,500 employees were recruited (many from
overseas) and a new town was established in
the local area. The plant operated a three-
shift system and manufactured over 3,500
components and small assemblies ranging
from brackets and braces to door frames.
Over 100 presses from 25- to 350-ton capacity
were housed in the plant and press operators
were assigned a machine and expected to
produce a specified quota of output.
Machines within the plant were arranged
according to function, with certain types of
welders or presses of a particular capacity
being located next to each other. The first 20
years saw little change within the plant and,
by the late 1970s, the heavy aroma of oil
which permeated every part of the building,
the prevalence of grease stained floors in
conjunction with poor ventilation and the
loud metallic thunder of machinery at work,
resulted in an extremely poor working
environment. Employees complained about
work conditions, there was a problem with
staff morale (staff absenteeism was a
supervisory headache), machine breakdowns
were common, scrap rates and inventory
levels were very high, and supervisors spent
most of their time fire-fighting technical and
human contingencies.
In the early 1980s, conditions had
deteriorated so badly within the plant that
senior management decided to set about
evaluating their options. The choice rested on
either closing the plant and outsourcing small
components manufacture (a strategy used
elsewhere in the automotive industry) or
trying to improve the operational efficiency
and performance of the plant. In taking the
middle ground, they decided to appoint a new
plant manager with a remit to identify parts
which would be better sourced elsewhere and
to radically improve remaining plant
operations. The new manager was informed
that, unless visible improvements were
forthcoming, the plant would be shut down
and the employees would lose their jobs.
At the outset, the new plant manager (BM)
clearly outlined to all employees that the
hard decision to close the plant would be
made by senior management if things
remained as they were. He asserted the need
for change and stressed that the cost of
failure would be jobs. In his presentations, he
aimed to forward an image of a firm, no-
nonsense manager, willing to listen to
employees and willing to take the decisions
needed to turn the plant around. A policy of
open communication was established and
senior shop-stewards were given open access
to air their views and grievances. Working
together with his staff, a number of small
components which could be manufactured
more economically by outside suppliers were
identified. These were taken out of
production and this created concern among
employees, largely on issues of job security
and possible hidden agendas around closure.
Employment levels within the plant were
reduced and, although BM explained the
reasoning behind these changes, a climate of
[ 298]
Patrick Dawson
Contextual shaping in the
origination, implementation
and uptake of manufacturing
cells
Integrated Manufacturing
Systems
12/4 [2001] 296305
uncertainty and insecurity dominated the
atmosphere within the plant. Sensitive to the
issue of staff morale, the plant manager
developed a five-year change programme,
which focused on employee relations and the
human aspects of work. This was to form the
mainstay of change over the coming years
and proved central to the improvement in
staff morale and personnel relations, which
helped facilitate the manufacturing cell
initiative at the end of the 1980s.
The three main strands to transforming an
adversarial system of employee relations into
a more harmonious and collaborative
environment comprised:
1 A clean-up of the shopfloor and the use of
brighter coloured paint in a push to
improve the general working
environment.
2 The devolvement of responsibility for
quality control to operators; developing
staff training programmes; and
encouraging employee participation in
identifying and discussing production
problems.
3 A policy of open communication with the
aim of achieving full union involvement
and co-operation, and to develop and
maintain a relationship of trust between
local management and union officials.
BM set about building social relations and
creating a climate of trust and openness
between plant management, union
representatives and employees. This
involved making employees aware that there
was a threat of plant closure, introducing
changes which improved the work
environment and developing systems to
improve and facilitate greater employee
involvement at work. It was under these
conditions that the introduction of
manufacturing cells took place.
Production problems and the route
to manufacturing cells
In a detailed examination of plant operations,
BM identified the lack of control over the
progress of components as a major problem.
An inability to monitor each manufacturing
step was resulting in high scrap rates and
poor quality in conjunction with excessive
material handling. Typically, small
components would travel enormous
distances throughout the plant, as they
underwent a scheduled sequence of
manufacturing operations. In order to gain a
firmer grasp of this problem, a group of parts
were identified and then tagged all the way
through the plant. As a result of these initial
experiments, the local management team
decided that there were two major problems.
First, that, although it was possible to tag
particular groups of parts, no individual or
group ever had complete control over the
part from start to finish. Second, that because
there was no change in material handling,
there was unlikely to be any improvement in
quality due to the enormous distances parts
had to travel.
The thorny issue of how to solve these
problems with a limited budget became a
major topic of debate. On a number of
occasions the principles of GT were
discussed and yet the notion of a total
rearrangement of plant and equipment was
never considered as a realistic option.
However, thoughts changed following the
attendance of the plant manager at a GT
seminar held in the city of Adelaide.
Enthused by the ideas generated in the
seminar, further material was gathered, read
and analyzed by the local management team.
As the group talked over plant problems and
the applicability of GT principles to their
own operations, they became increasingly
familiar with the language of GT and began
to see how the concepts could be applied in
practice. A plan was formulated and a period
of search and assessment of overseas
packages commenced. A US organization,
which had already developed a very
comprehensive system, was approached.
Although the system appeared appropriate
for the needs of GM, at a cost of A$1 million
the plant manager knew that it would be
impossible to get funding for such a project
from senior management. He discussed the
problem with his local management team and
the option of using the local manufacturing
division of the Commonwealth Scientific
Industrial Research Organization (CSIRO)
was forwarded by one manager who was
familiar with their work.
The social process of change and
industrial collaboration
A relationship, which had previously been
formed outside work between an employee of
GM and the CSIRO, was an important factor
in steering the two organizations towards the
setting-up and signing of an industrial
collaborative agreement for the design and
implementation of manufacturing cells. The
GM manager concerned recalled that it was
back in 1981, when he first met someone from
the CSIRO through their common interest in
stained-glass. From this contact he was
introduced to another member of the CSIRO
and together they worked on problems
stemming from their joint interest in home
[ 299]
Patrick Dawson
Contextual shaping in the
origination, implementation
and uptake of manufacturing
cells
Integrated Manufacturing
Systems
12/4 [2001] 296305
computing. As their social friendship
developed, so their discussions broadened to
lengthy debates about the benefits and
feasibility of designing a scheduling system
for use in a large press shop environment.
This relationship (which was developed
from social activities) provided the platform
from which the GM employee and the CSIRO
employee persuaded their respective
organizations of the benefits of pursuing an
industrial collaboration. Essentially, the
Adelaide Division of Manufacturing
Technology (DMT) was a newly formed group
with a remit to work closely with companies
for the purpose of increasing the
competitiveness of Australian industry. A
key objective of this group is to develop and
apply integrated manufacturing technologies
for enhanced productivity in the
manufacturing sector. In the case of GM, the
plant manager wanted a comparatively cheap
solution to the problem of redesigning the
plant into cellular form. Within this context,
the GM plant provided an opportunity for the
DMT group to gain valuable experience in
applying their research knowledge to a
practical ``real-world'' problem. According to
their project leader, the industrial
collaboration would serve as a ``loss-leader''
project for DMT in the development of
commercial software. For these reasons,
CSIRO were willing to do the work at one-
third commercial rates (on condition that
they held the intellectual property rights),
offering a comparatively cheap solution to
GM's problem. An agreement was signed
between the two companies and, by the
beginning of 1988, the first design of a set of
manufacturing cells was submitted to the
plant manager.
Funding constraints in the pursuit
of senior management support
Although the local management team and the
CSIRO collaborators were by this time
convinced (largely through their own efforts)
of the feasibility of introducing
manufacturing cells, senior management and
plant employees remained uncertain. As the
plant manager indicated: ``There were a lot of
sceptics and the worst sceptics were our
management''. Clearly, without the political
support and financial backing of senior
management, the project would never be
implemented. Consequently, the local
management team decided to set up a small
cell staffed by two hand-picked operators.
The trial period lasted three months, in
which time material handling was reduced
by 70 per cent, scrap by 90 per cent and
rework by 50 per cent. On the basis of these
results, finance was made available to set up
a larger cell, which was planned to run for a
period of 12 months.
The larger cell was set up to operate over
two shifts. There were six operators (three
female and three male), two presses and five
welders. The manufacturing cell operated on
ten-day runs and was able to produce 70
individual assemblies. No longer were
operators constrained by the functional
layout of machines placed in a series of lines,
where they would work continuously on a
few simple operations with little opportunity
for social contact or physical movement.
Under the cell system, staff were required to
move between various machines in
processing a given part and in co-ordinating
their activities with other cell operators. In
addition, they were also given greater
responsibility in the planning and pacing of
work. There was an expectation that they
would meet their production schedules, but
how they achieved this was left to the
individual operator. The operational cell
showed a bottom line improvement of 18 per
cent and provided a working example of the
manufacturing feasibility of moving from the
traditional machine-centred job-shop layout
to a human-centred system of cellular
manufacture. Moreover, on the basis of these
results, the local management team
submitted a proposal to senior management
requesting the necessary financial support
for the change programme. This proposal
was rejected, with one senior manager
suggesting that what was needed was not the
rearrangement of old equipment but the
purchasing of new machinery (which was not
commercially viable). At this stage, the
support of DMT proved critical to these
negotiations. As they comprised a team of
qualified experts, they were able to
substantiate the benefits of change and
present a coherently argued case for
investment. As it turned out, through
persistence and with the help and support of
other team members and the CSIRO, the
plant manager submitted an amended
proposal to senior management. A series of
presentations was made and the local
management team were eventually able to
convince the directors of the feasibility of
manufacturing cells.
The implementation and operation
of manufacturing cells
The actual re-arrangement of plant and
machinery was scheduled over a 12-month
period. Working in liaison with production,
[ 300]
Patrick Dawson
Contextual shaping in the
origination, implementation
and uptake of manufacturing
cells
Integrated Manufacturing
Systems
12/4 [2001] 296305
areas were cleared, floors were painted and
presses were moved. In order to minimize
disruption to the plant, the relocation of the
larger presses (up to 350 tons in capacity) was
mainly done over the weekends and during
the Christmas shutdown. While these changes
generated some aggravation between
shopfloor operators and the tradespeople
responsible for the equipment relocation
programme, this presented a challenge which
the project co-ordinator used to stimulate
enthusiasm among the change agents. Within
the 12 months allowed, all the larger
equipment had been moved to its new location
and within 18 months most of the plant was up
and running under the new cellular
arrangements. However, outwith this time-
frame the impetus for change has declined
with a noticeable lack of urgency for pursuing
many of the smaller and less costly elements
required to fully complete the change.
At the supervisory level, there is a degree of
rivalry between the manufacturing cells,
which largely stems from the supervisor's
praise or criticism of the cell allocation of
labour. Typically, the first cells to change over
to cellular manufacture are seen to have
received special treatment, leaving the later
cells with little choice but to ``work with what
remained''. This has resulted in a tendency to
blame employees for problems of low
productivity and/or staff absenteeism. In
addition, while the overall number of
supervisory personnel has been reduced by
over 50 per cent, the control function of
supervision has been enhanced to take on a
broader area of responsibility. Supervisors
are also concerned less with inspection and
technical issues and more with employee
relations, teamwork facilitation and planning.
This shift in the nature of supervision has
brought about a need to redefine supervisory
relationships and group work on the
shopfloor. For example, the transition to
cellular manufacture has brought about an
increase in the demands placed on individual
operators to conform to teamwork practices
and to get involved in the work process.
Traditional operating practices which
enabled employees to ``distance'' themselves
from the work are no longer deemed
``acceptable''. In contrast with conventional
functional layouts, which were criticized for
their alienating properties in constraining
social interaction and task engagement, the
new teamwork structures are based on group
work and collaborative employee
involvement. However, they also set clear
parameters on what is to be regarded as
acceptable employee behaviour under new
production arrangements; only in this case
the new teamwork structures can be
criticized for preventing employee
disengagement from the work process.
Paradoxically, traditional model employees
who continue to distance themselves from
process involvement will now be engaging in
behaviour defined as ``inappropriate'' by
management. Moreover, organizational
evaluation of this behaviour takes no account
of personal choice but, rather, explains
employee deviance in terms of an inability to
adapt to change. Consequently, the
``solution'' is perceived to be either through
training programmes which realign deviant
behaviours with this new set of working
principles, or through job transfer,
resignation, redundancy or early retirement.
In short, while there has been a general
improvement in the working conditions on
the shopfloor, the new working principles
under which appropriate employee
behaviour is evaluated remain tightly
constrained and controlled by management.
For some employees, this change is viewed as
downgrading work and reducing levels of job
satisfaction through imposing a new set of
team-based disciplines. In other words, while
working in a team may suit some people, for
others a preference was indicated for a more
individualized system of job design.
Consequently, these findings suggest that a
broadening of choice, rather than the
replacement of one system with another,
should be considered in the development of
strategies which truly seek to design and
implement more human-centred systems of
work organization.
Discussion: contextual shapers in
the uptake of manufacturing cells
From this study on the contextual shapers of
change in the uptake of manufacturing cells
it can be concluded that what may prove
critical to outcomes in one context and at one
time may not prove significant to other
companies operating under different
contextual conditions. Nevertheless, the
dynamics of unfolding contingent
circumstances and the unforeseen and messy
nature of change do not render these findings
entirely unique. For example, the finding
that, under the contextual conditions of
threatened plant closure and job loss, the
industrial relations climate is likely to be far
more conducive to change is not particular to
this case. Moreover, within a plant
environment where deteriorating conditions
of work had been halted and significantly
improved with the arrival of a new plant
manager, it is perhaps not surprising that
many employees got involved and welcomed
[ 301]
Patrick Dawson
Contextual shaping in the
origination, implementation
and uptake of manufacturing
cells
Integrated Manufacturing
Systems
12/4 [2001] 296305
the change initiative of local management.
This of course raises the question of whether
it is possible to identify a number of critical
contextual shapers which are likely to be
central to the implementation, uptake and
use of cellular manufacturing across
companies. The two overlapping categories
of internal and contextual shapers identified
from this research are summarized in
Tables I and II.
In our case study, all of the internal
contextual shapers outlined in Table I
influenced processes of change in the uptake
of manufacturing cells. However, to note that
organizational culture and the history of
plant operations will influence responses to
change is not enough by itself. What is
required is a contextual analysis of the
company in question in order to make sense
of the dynamic character and import of these
dimensions. For example, knowing that,
when the plant was constructed in 1959, new
machinery was purchased, labour was
recruited from overseas (mainly from the
UK), and a new town was established close to
the GM site in Australia, helps us to
understand the close relationships developed
between operators and their families both at
work and within the local community (in
some cases, the father, mother and sons of a
single family all worked at the GM site).
Under such contextual conditions, it is not
surprising to find close identification with
the employing industry and the development
of strong personal ties and workplace
cultures, which, unless mobilized, may serve
as a significant block to management change
initiatives.
In drawing out a number of historical
dimensions to plant development and
employee experience of work, it can also be
shown how a range of contextual factors
acted to constrain change in terms of both
creating a social environment not conducive
to change (for example, the perception that
there was little interest or point to change)
and presenting technical constraints on work
restructuring (for example, in the common
belief that the size and physicality of the
large machine presses severely limited
options). Furthermore, lack of investment,
outdated technology and traditional forms of
work organization were just some of the
other factors, which, over the years, were
seen to have created a deteriorating work
environment. Inefficiencies, high scrap
levels, industrial relations problems,
absenteeism and low staff morale, all dogged
operations at the plant. In addition, there was
an abundance of organisational stories and
myths of the ``good old days'', which
heightened dissatisfaction and, with growing
employee awareness that major investments
were being made elsewhere on the site (for
example, automotive assembly), there was an
understandable fall in employee morale and
the tension increased between operators,
supervisors and managers. Again, this
situation is not particular to this case;
targeted investment in plant and machinery,
which may ignore certain other areas of
operation, is likely (if sustained over time) to
result in poor employee morale and a
questioning of management commitment.
Some of these contextual shapers of change
may be evident and clearly visible to all,
while others may remain hidden or become
obscured by more ``dominant'' events or
issues with the company or plant. In the GM
case, management recognised the need to
rebuild employee morale and commenced a
series of actions aimed at demonstrating the
commitment of local management to
introducing changes which would improve
the quality of working life. Following a series
of meetings with senior shop-stewards and
employees, the shopfloor was cleaned,
machines were painted bright yellow and
surplus staff were assigned tasks associated
with improving the ``housekeeping'' of the
plant. These simple but effective measures
initiated the mobilization of employees
behind management's plans to update and
improve plant operations as a whole. Within
this context, the plant manager also proved
important in creating the social conditions
Table I
Internal contextual shaping of change
processes
Internal context in the uptake of manufacturing cells
History of plant operations and working environment
Organizational culture and workplace sub-cultures
Work organisation and administrative structures
Technology, plant and equipment
Management policy and practice
Supervision and the role of supervisors
Employees and established work groups
Industrial relations climate and trade union
organisation
Table II
External contextual shaping of change processes
External context in the uptake of manufacturing cells
Business market conditions (e.g. trade agreements, interest and exchange rates)
Government initiatives and promotional activities
Strategies and innovations of other companies and competitor firms
Consultancy groups and outside experts
Legislation and changing social expectations
State of development of technologies and management techniques
Collaborative organizational activities and commercial networks
Competition (local, national and international)
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which engaged employees in a more positive
vision of the future. The past was used to
explain the present and also highlight the
need for alternative methods of working.
Employee acceptance of change was further
supported by the early delivery of real
benefits to staff in the opening of
opportunities for skill development and
increased remuneration. At a general level,
the importance of these contextual elements
as shapers of change, that is, communication
and discussion on central workplace
concerns, demonstration of management
commitment, and of providing tangible and
practical improvements at work, is not
peculiar to this case. Although there are no
simple recipes for change, the case highlights
the importance of contextual awareness in
developing local change strategies around
these broader dimensions.
In addition to the internal context, the case
study also draws attention to a number of
external contextual shapers of change (see
Table II). For example, over the last 20 years
developments in technology, combined with
the growing adoption of new production and
service concepts, have resulted in the more
widespread company uptake of alternative
methods of organising work (Womack et al.,
1990). A number of US and UK manufacturers
have implemented more flexible, team-based
manufacturing methods, which are able to
respond to the increasing volatility of
tradition conditions by reducing set-up and
flow times (Safizadeh, 1991). In the case of
General Motors (and at the time of the study),
the company was operating in a highly
competitive business market, in which the
Government had implemented a series of
initiatives to increase the efficiency and
international competitiveness of the
Australian automotive industry. Moreover,
the availability and promotion of new
technologies and techniques and the
successful adoption of these by other
business leaders set the context within which
strategic decisions were being evaluated.
Like many other companies, the senior
management of GM felt that it was important
to maintain a watchful eye over what their
competitors were doing and the operating
performance of their various manufacturing
facilities. The hardware fabrication plant at
their Elizabeth complex stood out because it
was performing badly and, in addition, all
other competitor firms had already
outsourced this form of small components
manufacture. Some of the senior
management were understandably in favour
of closure, while others (concerned over cost
and availability of supplier networks) sought
alternative solutions. As already indicated, it
was decided that a new plant manager would
be appointed and investment in the plant
would be limited. Consequently, although the
external contextual factors influenced the
political process of strategic decision making
on the future of the plant, the outcome of this
political process was not solely determined
by context (or taken as given in this instance)
and may have been overturned during the
assessment and evaluation of options. In this,
the different agents of management were
critical in getting their preferred outcome in
a situation which was unclear and
negotiable. As it turned out, the corporate
decision to defer the option of closure put
plant-level change high on the political
agenda and created a situation where
employees and their trade unions were all
made aware that failure to improve
operations would result in job loss.
Furthermore, the promotion of cellular work
arrangements within South Australia and
the availability of a local body of experts
willing to form an industrial collaboration
(who had their own political agendas) were
both part of the contextual environment
which served to shape the decision-making
process on the future of the plant.
Although space does not allow for each of
the elements outlined in Tables I and II to be
discussed in detail, it is important to note
that in practice these internal and external
factors overlap and interlock as part of a
dynamic process and, therefore, should not
be treated as discrete contextual conditions.
The influence of ongoing relations within
and between different groups and individuals
both internal and external to the
organization and the emergence of dominant
coalitions and competing narratives on
change will all serve to influence the
contextual shaping of change in the uptake of
manufacturing cells. For example, the
consequence of a change in the level of local
business activity cannot be simply explained
by the shift in activity alone but must also be
understood in terms of the contextual
interpretation of key actors (linked to past
experience and future expectations) and the
political context (both internal and external)
in which these changes are taking place.
Furthermore, trade unions and industrial
relations legislation may cut across the
spectrum of contextual shapers, while other
factors, such as workplace sub-cultures and
working environment, embody more of a
localized history of change and continuity in
which employees make sense of their own
work life experience. However, even with
these more local examples, familial and
community values are likely to influence the
development of workplace cultures. Thus, in
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examining context, the interconnectivity
between history, culture and political
process is highlighted and the way in which
they combine and are interpreted as factors
which enable choice or constrain options
helps to explain the way context shapes
unfolding processes of change.
Conclusion
In presenting a historical overview of the
uptake and use of manufacturing cells in an
Australian GM automotive components
plant, attention has been focused on the
social and contextual factors which have
influenced the process and outcomes of
change. It has been shown how many of the
associated human aspects have involved
political activity revolving around the power,
place and perspective of individuals and
their capacity to develop interpersonal
relationships, form and re-form groups,
orchestrate resources and manage the
unfolding and unforeseen processes of
change.
Unlike conventional STS theory, which
focuses attention on the balance between the
social and the technical, the claim made here
is that the contextual process in the design,
implementation and uptake of
manufacturing cells represents a far more
complex political process in which the
substance of change remained uncertain and
in doubt even during the actual
implementation of new work cell
arrangements. For the most part, elements of
the social and technical were understood in
terms of the machinery of production and the
need to develop new teamwork arrangements
without due consideration of the local history
and context of operations and the diverse
needs of a range of individuals and groups.
As a consequence, in evaluating the effects of
this change on employee experience it was
shown how the shift from individual-based
work regimes to team-based cells did not suit
all employees (an assumption often made in
STS approaches). These findings indicate
that, while a hybrid system which was able to
comprise individual and team-based jobs
would have better suited the needs of
employees, in practice, the social and
technical elements accommodated in
manufacturing cell design were never viewed
as enabling such an outcome. These
assumptions which were held by the cell
design team and reaffirmed by their
interactions with local management acted
to constrain design options and limit the
local configuration of cell arrangements by
employees. As such, context, the
interpretation of context and the political
process of cell design (which was also shaped
by commercial concerns) all served to steer
the process in a particular direction.
In studying the influence of contextual
shapers on cell manufacture this study also
demonstrates the importance of examining
change ``as-it-happens'' from the initial
conception of the need to change through to
routine operation (even though it is often
difficult to identify any clear start or end
point to large-scale change initiatives). At a
general level, the case study highlights how
external contextual factors are likely to have
more influence during the initial periods of
change, while internal factors may prove
more significant during the implementation
and operation of new work procedures. For
example, prior to the initiation of a change
programme, external contextual market
conditions, competitor strategies,
government initiatives or the promotion and
publicity of new management techniques,
may all serve to influence conceptions of the
``need'' to change and awareness of change
options. Once a large change programme has
commenced, attention is likely to refocus on
internal contextual conditions which serve to
influence the speed, direction and progress of
the change. The actual re-arrangement of
plant and machinery may spotlight not only
issues to do with tasks, tools and the way
work is structured, but also human concerns,
interpersonal relations and possible
resistance to the imposition of new team-
processes.
Finally, it was advocated that a processual
approach is particularly useful in providing
a framework for understanding the
contextual shapers of change. This
contextual shaping was shown to occur from
the conception of the idea of cellular
manufacture through to the setting of
strategic objectives, cellular design,
implementation and local configuration.
Although the processual approach can be
used to explain and chart these change
processes, it does not set out to promote a
particular form of design (as with socio-
technical systems theory). As such, it is has
been shown that, while employees may be
encouraged to participate with systems
designers and domain experts in developing
appropriate forms of work organization,
political processes will also serve to influence
cell implementation and the final outcomes
of change. For example, the case study
illustrated how the strategy for cell design
followed a socio-technical framework in
seeking to optimize the social and technical
sub-systems through an iterative process
which sought to engage employees and
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significant others prior to actual
implementation. However, in the practice of
implementation and through the political
positioning of certain key stakeholders, it
was also shown how outcomes were shaped
by a more complex dynamic between design
elements, contextual factors and the political
dimension. In the case of manufacturing
cells, the balancing of the social and the
technical has not yielded higher levels of job
satisfaction throughout the plant. In contrast
with the STS position, the findings from this
study suggest that there will always be
``casualties'' in replacing one form of work
organization with another and that perhaps
we should be looking at systems which can
accommodate a greater range of needs in
servicing choice rather than imposing
constraints on employee behaviour. The case
findings also draw attention to the
unforeseen character of change and how the
less clear and politically messy elements
need to be managed, if particular outcomes
are to be achieved. In other words, OD
strategies of participation and socio-
technical design will not by themselves
produce more human-centred forms of work
organization, as context, history and political
process will all play a part. Consequently, it
is argued that there is a need to move beyond
simple prescriptive socio-technical theories
and unilinear sequential models of change, to
more processual approaches, which can
address the contextual dynamics and
political processes associated with the
introduction of manufacturing cells.
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Systems
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