1. Precision Plastics 1 Precision Plastics: Case Analysis Vince Rubiera MGT 660-62-082 January 18, 2008

2. Precision Plastics 2 What is/are the problem(s)? Bill Smith has taken over a group of tool and die workers. Shortly after this transition, the employees started to complain over Bills management. Also, the production of molds began to fall behind schedule and they even lost an employee. Using the framework of the Path-Goal Theory, we learn the degree of perceived skill amongst the employees determines the degree of directive behavior that should be applied when measured against employee satisfaction (Vecchio, 2007). Path-Goal also uses the measure Locus of Control to draw the positive correlation between how much the workers feel they control their environment and the use of the participative style of management (Vecchio, 2007). This being noted, we can recognize that Bill used a high directive style of management in his old department. This worked well, since the workers there had a low perceived skill level, a high level of turnover and little interest in their work. The problem in the new department is Bill did not change his management style when he assumed his new role there. The workers there were highly skilled, proud, loyal, and had a high internal Locus of Control. According to House and Mitchell, Bills directive style would drive down employee satisfaction in this environment. This is probably a big contributor to the current state of that department. The workers needed such a high degree of focus to complete each mold, that Bills constant supervision was seen as an intrusion, and just added additional stress to their workspace. They considered themselves experts, and Bill was not. Path-Goal asks leaders to remove barriers that stand between employees and high performance; Bills directive style has become the barrier. 3. Precision Plastics 3 From a LMX approach, you can definitely see the in and out groups in this case. Bills old department fit the definition of an out group very well. Out groups (and the molding machine workers) do not exhibit company loyalty, contribute any extra effort or display any signs of motivation to perform above expectations. They will solely do what is required of them under traditional (task oriented) psychological contracts. Vechio used the term hired hands (Vecchio, 2007). Bills new group appeared to be the in group. They demonstrated loyalty, pride, high quality work and extra effort. They had developed Psychological (relationship) contracts with their old boss in which they provided their loyalty and high quality in trade for autonomy, flexibility and a high amount of responsibility. When Bill started to change the environment of his new group through standardization and higher controls, he may have broken those psychological contracts. By doing this he probably affected the output of the employees, and degraded their level of satisfaction. What are some alternative solutions to the problem? While analyzing the case, I felt this department was performing very well before Bill. According to Path-Goal, Bill should first investigate what barriers are getting in the way of production (Schriesheim). By communicating with them to see if there are any roadblocks or de-motivators that get in their way, he may improve efficiency by removing them. He will also discover his negative effect on their performance here, and begin using the theories below to improve the situation. We can use the Porter-Lawler model to visually map a motivational theory flow diagram that can be used interchangeably with Path-Goal (Schriesheim). I believe this 4. Precision Plastics 4 is a great way to take a pragmatic approach towards analyzing the case against the framework of Path-Goal. This model begins with the perceived value of the rewards. Here, Bill should realize the rewards they value are mostly intrinsic. These workers are internals, and therefore are mostly driven from the satisfaction of doing the job right. There is also the step which receives feedback from previous accomplishment, which strengthens the expectancy relationship. We were able to see, the tool and die workers know their effort results in good performance, and Bill does not need to re-establish this. At this step we consider which leadership style works best, given their abilities and traits He should consider the individual characteristics of the employees, and what kind of management style best suits the situation. Given their high quality output, passion for their work and high skill level, and given the unique nature of each mold, Bill should choose a participative style of leadership and abandon his directive and assertive style. Some other styles are available to Bill, but these would not fit as well. The first alternate style, Achievement-Oriented, which may work, since it just sets challenging goals and provides the autonomy they need, lacks a crucial piece. It does not allow the workers to have some input into the final product like they used to have. They are creative experts and should be given this input, since each piece is unique. The last style to discuss, supporting, would not fit this scenario either. The supporting style is mostly for employees who need a lot of encouragement and support (Neider), and these employees do not. Next on the flow diagram is Role perception. It is obvious this group knows what is expected of them, and is in danger of being negatively affected if Bill continues to strive for uniformity. The participative approach suggested earlier will resolve this. 5. Precision Plastics 5 The following steps focus on instrumentality. We know this group is driven by intrinsic rewards which they feel are equitable (disappointment shown that others are not taking up the craft). They are also well compensated for their work. This should serve Bill well when investigating extrinsic rewards. If he really feels he needs to increase production, He can see how they may feel about other incentives or bonuses for higher productivity. By changing his style, Bill can also restore the in group mentality that used to exist and re-negotiate those psychological contracts that were broken early on. Communicating his adaptation of a participation style of management, and stating his high-level expectations of the department, will help to restore these contracts, the teams pride and their job satisfaction. In conclusion, Bill needs to get out of their way and allow them to resume the manufacturing of the high quality products they were producing. Bill did not need to change anything here except his own style. Key assumptions: 1) The tool and die workers had a high internal Locus of Control since they had each developed their own way of making molds, and it also states they had a high degree of pride in their work. 2) Psychological (relationship) contracts were formed between Joe and his employees, giving them autonomy for their loyalty and good work. 3) We are approaching the analysis and alternative solutions at the point in time where the case ends. 6. Precision Plastics 6 References: Vecchio, R. P. (2007). Leadership: Understanding the dynamics of power and influence in organizations. Notre Dame, IN: University of Notre Dame Press. Neider, L.L (2007).Managing Responsible Behavior in Organizations. University of Miami, Class Notes.