SRI SAI COLLEGE

Master of Business Administration (MBA) - Information Systems

Management (ISM)

Organizational Behavior

Assignment 1: Case Study: Humanized Robots

Assignment 2: How Do You Change An Organizational Culture?

Name: Zelalem Gashaw

ID: MBAISM/318/21
Date: 11/12/2021
Managing People and Organizations

Humanized Robots?

Helen Bowers was stumped. Sitting in her office at the plant, she pondered the same questions she had been facing for months:
how to get her company’s employees to work harder and produce more. No matter what she did, it didn’t seem to help much.

Helen had inherited the business three years ago when her father, Jake Bowers, passed away unexpectedly. Bowers Machine Parts
was founded four decades ago by Jake and had grown into a moderate-size corporation. Bowers makes replacement parts for
large-scale manufacturing machines such as lathes and mills. The firm is headquartered in Kansas City and has three plants
scattered throughout Missouri.

Although Helen grew up in the family business, she never understood her father’s approach. Jake had treated his employees like
part of his family. In Helen’s view, however, he paid them more than he had to, asked their advice far more often than he should
have, and spent too much time listening to their ideas and complaints. When Helen took over, she vowed to change how things
were done. In particular, she resolved to stop handling employees with kid gloves and to treat them like what they were: the hired
help.

In addition to changing the way employees were treated, Helen had another goal for Bowers. She wanted to meet the challenge of
international competition. Japanese firms had moved aggressively into the market for heavy industrial equipment. She saw this as
both a threat and an opportunity. On the one hand, if she could get a toehold as a parts supplier to these firms, Bowers could grow
rapidly. On the other, the lucrative parts market was also sure to attract more Japanese competitors. Helen had to make sure that
Bowers could compete effectively with highly productive and profitable Japanese firms.

From the day Helen took over, she practiced an altogether different philosophy to achieve her goals. For one thing, she increased
production quotas by 20 percent. She instructed her first-line supervisors to crack down on employees and eliminate all idle time.
She also decided to shut down the company softball field her father had built. She thought the employees really didn’t use it much,
and she wanted the space for future expansion.

Helen also announced that future contributions to the firm’s profit-sharing plan would be phased out. Employees were paid enough,
she believed, and all profits were the rightful property of the owner—her. She also had private plans to cut future pay increases to
bring average wages down to where she thought they belonged. Finally, Helen changed a number of operational procedures. In
particular, she stopped asking other people for their advice. She reasoned that she was the boss and knew what was best. If she
asked for advice and then didn’t take it, it would only stir up resentment.

All in all, Helen thought, things should be going much better. Output should be up and costs should be way down. Her strategy
should be resulting in much higher levels of productivity and profits.

But that was not happening. Whenever Helen walked through one of the plants, she sensed that people weren’t doing their best.
Performance reports indicated that output was only marginally higher than before but scrap rates had soared. Payroll costs were
indeed lower, but other personnel costs were up. It seemed that turnover had increased substantially and training costs had gone up
as a result.

In desperation, Helen finally had hired a consultant. After carefully researching the history of the organization and Helen’s recent
changes, the consultant made some remarkable suggestions. The bottom line, Helen felt, was that the consultant thought she
should go back to that "humanistic nonsense" her father had used. No matter how she turned it, though, she just couldn’t see the
wisdom in this. People worked to make a buck and didn’t want all that participation stuff.

Suddenly, Helen knew just what to do: She would announce that all employees who failed to increase their productivity by 10
percent would suffer an equal pay cut. She sighed in relief, feeling confident that she had finally figured out the answer.

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Answer

Before going to the case question to mention a few about the case study. Bowers
Machine Parts were founded by Helene’s father and she had inherited the business
three years ago due to her father’s death. she never understood her father’s approach.
Jake had treated his employees like part of his family. In Helen’s view, however, he paid
them more than he had to, asked their advice far more often than he should have, and
spent too much time listening to their ideas and complaints.

She had set a goal:

 to get company’s employees to work harder and produce more
 She wanted to meet the challenge of international competition. (Japanese firms )
which she saw as both a threat and an opportunity.

How she tried to reach her goals is what buys our attention:

 She increased production quotas by 20 percent

 She instructed her first-line supervisors to crack down on employees and
eliminate all idle time.
 She also decided to shut down the company softball field her father had built
which she wanted for future expansion
 The firm’s profit-sharing plan would be phased out. Employees were paid
enough, she believed, and all profits were the rightful property of the owner—her
 Plans to cut future pay increases to bring average wages down to where she
thought they belonged.
 Never took any advise from anyone

Helen thought, Output should be up and costs should be way down resulting in much
higher levels of productivity and profits. But what happened was:

 she sensed that people weren’t doing their best

 Performance reports indicated that output was only marginally higher than before
but scrap rates had soared
 Payroll costs were indeed lower, but other personnel costs were up.
 turnover had increased substantially and training costs had gone up as a result.

And finally, again she decided to pass a new rule of all employees who failed to
increase their productivity by 10 percent would suffer an equal pay cut.

Case Questions

 How successful do you think Helen Bowers’s new plan will be?

As stated above the approach that Helen used has failed her. The reason being that
she is treating her employees as human robots and prioritizing the productivity in an
unorthodox way. The employees really got de-moralized and looks like even lost their

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interest to work. A firm or any business works successfully with the help of its dedicated
and experienced workers and the workers aim to achieve their self-satisfaction &
through the company goals in terms of incentives or rewards.

As Helen has announced for all employees who fail to gain the productivity by 10
percent will face an equal pay cut, this will result in many of the colleagues to fight
against this punishment approach and might even leave some of the workers quit the
job. And so this plan will lead Bowers Machines to more critical situation might even
resulting ceasing of the firm. So, I don’t believe in any sense Helen’s new plan will be
successful.

 What challenges does Helen confront?

Helene’s challenges which I believe are stated below.

 Her own approach towards the firm is the biggest challenge as we can see it is
failing and is leaving the firm in danger
 Employees are not performing due to the new rules which is affecting production
 Trained Employees quitting
 Less productivity
 The growing of International competition and the Japanese Firm
 Personnel and training costs will get higher and higher

 If you were Helen’s consultant, what would you advise her to do?

If I was Helen’s consultant I would advise her that her goals were right but the approach
she is taking was failing her. I believe there’s always a room for improvement and she’s
trying to exploit that is never a problem. So as a step by step approach I will advise her
to take in to action the following points

 Get the firm running like how her father used to do which has a family like
relationship
 Make positive reinforcements to achieve more output from her employees
 Make the work environment an enjoyable so that it can get the outmost best out
of her employees
 increase the employee participation into the decision-making opportunities
 Ensure teamwork are present since teamwork also helps in increasing
productivity since there is more input in the form of ideas and minds at work.

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Individual Assignment Total Marks- 20 Last Date for Submission is 06.12.2021

1. How Do You Change An Organizational Culture?

Organizational change refers to the process of growth, decline and transformation within
the organization. Though one thinks that organizations are enduring structures in a
changing society. However, the truth is that organizations are changing all the time.
Organizational change takes different forms. Sometimes, organizations change quite
radically yet retaining their name; the new organization may be nothing like the old one
except in the name.

In any organization, we have people engaged in production, research, development,

administration, etc. The organization in order to change should prepare a stock of the
situation and should effect change in their attitude and style of functioning.

An organization is an open system which implies that it is in a constant interaction and

interdependent relationship with its environment. Any change can occur in its
environment, such as change in consumer tastes and preferences, competition,
economic policies of the government, etc.

Organizational culture is defined as the underlying beliefs, assumptions, values and

ways of interacting that contribute to the unique social and psychological environment of
an organization.

Organizational culture includes an organization’s expectations, experiences, philosophy,

as well as the values that guide member behavior, and is expressed in member self-
image, inner workings, interactions with the outside world, and future expectations.
Culture is based on shared attitudes, beliefs, customs, and written and unwritten rules
that have been developed over time and are considered valid (The Business
Dictionary).

Culture also includes the organization’s vision, values, norms, systems, symbols,
language, assumptions, beliefs, and habits (Needle, 2004).

Simply stated, organizational culture is “the way things are done around here” (Deal &
Kennedy, 2000).

While the above definitions of culture express how the construct plays out in the
workplace, other definitions stress employee behavioral components, and how
organizational culture directly influences the behaviors of employees within an
organization.

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Organizational culture is not stagnant. Members of an organization develop a shared
belief around “what right looks like” as they interact over time and learn what yields
success and what doesn’t. When those beliefs and assumptions lead to less than
successful results, the culture must evolve for the organization to stay relevant in a
changing environment.

Changing organizational culture is not an easy undertaking. Employees often resist

change and can rally against a new culture. Thus, it is the duty of leaders to convince
their employees of the benefits of change and show through collective experience with
new behaviors that the new culture is the best way to operate to yield success.

Stated above briefly defines what Organizational change is and also what organizational
culture means. Now based on different studies and researches I’ve collected the
following 6 points are needed in order to advocate organizational cultural change.

1. Formulate a clear strategic vision: This vision gives the intention and direction
for the future culture change.
2. Display top-management commitment: The top of the organization must favor
the culture change in order to actually implement the change in the rest of the
organization.
3. Model culture change at the highest level: The behavior of the management
needs to symbolize the kinds of values and behaviors that should be realized in
the rest of the company. Change agents are keys to the success of this cultural
change process and important communicators of new values.
4. Modify the organization to support organizational change: This includes
identifying what current systems, policies, procedures and rules need to be
changed so alignment with the new values and desired culture can be achieved.
5. Select and socialize newcomers and terminate deviants: Encouraging
employee motivation and loyalty to the company will create a healthy culture.
Training should be provided to all employees to help them understand the new
processes, expectations, and systems.
6. Develop ethical and legal sensitivity: This step can identify obstacles of
change and resistant employees, and acknowledge and reward employee
improvement, encouraging continued change and involvement.

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On a more detailed points, the listed important points will allow for an organization
cultural change:

1. Define desired values and behaviors.

2. Align culture with strategy and processes

3. Connect culture and accountability.

4. Have visible proponents.

5. Define the non-negotiables. When contemplating a culture change, look at your

current culture and call out which aspects you want to retain.

6. Align your culture with your brand.

7. Measure your efforts. Help demonstrate the effectiveness of your efforts by

implementing employee surveys and analyzing gaps between desired and actual
behavior.

8. Don’t rush it. Changing a culture can take anywhere from months to several
years.

9. Invest now. Don’t wait for staff and resources that may never come. “It takes
years of investment to get to that point where [your culture] just automatically
becomes part of how you behave and act,” so begin whatever way you can. 

10. Be bold and lead. You don’t have to be in a position of influence to have
influence. “When we step up, it encourages others to step up as well,” he says. 

Conclusion

While there is widespread agreement that organizational cultures do exist and that they
are a key driver in shaping organizational behaviors, pinpointing an exact definition of
the concept is a difficult undertaking.

An absolute definition would allow not only for a more rigorous study of organizational
culture, but also increase our understanding of how it influences other organizational
outcomes such as productivity, employee engagement, and commitment. One thing is
undoubtedly known about culture: It is constantly being created, changed, and
splintered to ensure the success of its parent organization.