CASE STUDY: STMICROEELECTRONICS

I. BACKGROUND

The largest semiconductor manufacturer in the world is STMicroelectronics. Power and

sensing technologies are the focus of the company's product line. The company
STMicroelectronics makes a creative and beneficial contribution to people's lives because its
goods are ubiquitous. Everywhere and at any time, STMicroelectronics wants to provide its
customers with engaging multimedia experiences. Furthermore, they create data security
and protection policies that spread the application throughout their domestic and global
markets. Over the years, the company established strategic alliances and strong
partnerships with leading universities, research institutes, competitors, and customers
worldwide. However, similar to other organizations, STMicroelectronics has encountered
internal issues. The majority of employees’ express dissatisfaction with the management's
leadership style, namely the supervisors' lack of openness to proposals aimed at enhancing
the company's operations. How it developed into an order and a totalitarian government.
The problem makes the workers rebel against them. Furthermore, it appears that the
management is solely concerned with growing the firm, which is why they neglected to
incorporate other relevant parties and employees in their reform initiative.

II. STATEMENT OF THE PROBLEM

a. The leadership style that STMicroelectronics should use to end employee resistance to
company initiatives and address complaints from employees that management is
directive and dictatorial is called "Democratic Leadership." In this style, managers
encourage group members to participate, ideas are freely exchanged, discussion is
encouraged, and the focus is on group equality and the free flow of ideas. However, in
order to weigh the benefits and drawbacks of all employee opinions and ideas,
managers retain the final say over decisions.

The leadership style that STMicroelectronics should implement to eliminate employee

resistance to the company's change initiatives is known as "Participative Leadership."
Based on task performance, the management is authoritarian, directive, and closed to
member suggestions, which leads to significant protests. Through the use of
participatory leadership, team members can create plans and solutions to address
organizational issues. This style of leadership is called non-directive. This type of
leadership, in my opinion, makes it easy for management and staff to resolve issues, and
it may even eliminate employee resistance to organizational transformation projects.
b. The "Kaizen Approach" should be used by STMicroelectronics to gather feedback from
both internal and external stakeholders. The fundamental tenet of kaizen is the constant
improvement of everything, everywhere, at all times. Every employee at
STMicroelectronics, including external and internal stakeholders, is crucial to the Kaizen
implementation process. The participation of all staff members at all organizational
levels is essential to the success of this strategy. Everyone is encouraged to share
suggestions for changes that are pertinent to what STMicroelectronics needs to learn
from their internal and external stakeholders, as opposed to using a top-down or
bottom-up strategy. It is possible to accomplish incremental innovation that will have a
major overall impact by implementing tiny improvements across all business areas
through the combined individual efforts of the entire organization. Furthermore, giving
STMicroelectronics workers a voice in workplace modifications raises morale, which in
turn raises productivity.

c. Always strive to enhance company procedures, offerings, and conveniences. Due to its
assistance in establishing, sustaining, and enhancing a quality management system, ISO
9000 can boost STMicroelectronics Organizational performance in general. In order to
improve STMicroelectronics' operational effectiveness and client pleasure, this would
offer guidelines. ISO 9000 could be beneficial to manufacturing or semiconductor
companies, as it primarily focuses on quality assurance. Issues related to efficiency and
quality arise on a daily basis in business. When you stop to think about it, every business
aspires to quality, which is also frequently very challenging to get.

III. AREAS OF CONSIDERATION

The STMicroelectronics company needs to think about and concentrate on holding regular
meetings with employees to inquire about and listen to their experiences with the work
process in their daily routine. Simply asking your employees how their day went may have a
meaningful impact on them and help them feel valued and cared for. Additionally, they can
use the suggestion boxes to post their ideas and comments. The supervisors will review
each one in order to get input from both the consumers and the staff.

IV. ALTERNATIVE COURSES OF ACTION

In order to make choices, STMicroelectronics must endeavor to adopt a participative

leadership style, wherein all people of the organization collaborate with one another. Since
participation and idea sharing are encouraged for everybody, participatory leadership is
often referred to as democratic leadership. Collaboration is boosted by participative
leadership because, unlike in other workplaces, where employees may feel unheard if their
attempts to contribute are rejected based on their experiences or opinions, participative
leadership allows a business to hold forums and meetings where these ideas can be
discussed. Individuals are inclined to contribute and feel that their input is appreciated
when they are assured of being heard. This is a basic need for contented, driven employees.
A place of employment where individuals feel appreciated, less pressure to stand out, and
connected to the company. When a workplace has these attributes, people are less likely to
want to quit, which is why it can increase employee retention. An organization can gain a
great deal from participatory leadership. When a leader employs this approach effectively,
the team as a whole can be brought into the organization's operations. Through the process
of crowdsourcing opinions and contributions, decision-making is transformed into a
cooperative endeavor that utilizes the skills, knowledge, and background of all involved
parties.

V. RECOMMENDATION

Since employee empowerment is a matter of responsibility and confidence, I advise them to

implement it. This demonstrates accountability and gratitude. An excellent leader fosters
a more cohesive community and improves the working environment by empowering his
team members and providing possibilities. Employees want to know that their opinions are
appreciated and that their suggestions for improving departmental choices, procedures, or
operations are taken seriously, thus it makes sense that they would want a voice and to be
involved in key decision-making processes. Although empowering employees is a risky
move, management should also take into account the fact that doing so will boost
employee engagement, encourage greater innovation, inspire more confidence in the
leadership, and increase employee retention—all of which will eventually improve the
bottom line. The primary goal is to provide their staff a sense of empowerment within the
company. To take action on complaints and to have their opinions heard.

VI. MANAGEMENT LESSONS LEARNED

STMicroelectronics needs to understand that there are a number of reasons why employees
are disengaged, and that one of the prevalent causes is ineffective leadership. For this
reason, managers need to be able to look out for their staff. The words "take care of your
employees, and your employees will take good care of you or your business" are ones that I
will never forget, and the STMicroelectronics company should too. In my opinion,
management should remember this statement since they must acknowledge that workers
are essential to the operation of the company and must therefore receive proper care.
Making sure that workers feel valued and cared for can also easily improve business culture
and employee engagement. This saying has always reminded me to treat my staff well
because it can also assist to enhance their productivity because of how good they feel:
"Take Care of Your People, and They'll Take Care of Business." Positive workplace cultures
foster stronger relationships between teams, which promotes greater levels of cooperation
and efficiency. For the business as a whole, this may lead to improved financial outcomes.
Verify the employees' well-being to ensure they are working to the best of their abilities.
Doing so could have a lot of advantages for the overall business as well as for them. By
making the correct decisions, we can contribute to a sustainable future and prolong the
working life of our workforce. All you need to do is remember the welfare of the individuals
working for you, and don't become so conceited as to believe you can get by without the
input and ideas of others. In order to improve their company, managers must learn to value
the individuals in their immediate vicinity. This is because everyone gets along well with one
another and doesn't hold themselves in high regard.