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CASE : CHHAVI WOOLLEN MILLS LTD.
Chhavi Woollen Mills Ltd. was incorporated in 1970 and it manufactures and `sells woollen garments under the brand name `CWM`. Its products are popular not only in India but abroad also. The company expanded its plant capacity in the early nineties. Majority of its existing employees joined the company in the early seventies and are now nearing retirement age. In fact, the process of replacing such employees with younger ones has already begun. Because of expansion also, several new employees have joined the company in the past five years. The company failed to achieve its sale targets last year mainly because of fall in quality of its products. Though it employs best materials and latest machines, the workmanship has not been upto the mark. This was the general complaint of the dealers and customers. The public image of the company has suffered a lot. In order to recover the lost ground, the production manager discussed the issue with the staff several times, but it brought no improvement. The young workers have started raising their voice against bureaucratic rules and regulations in the factory. The old workers recall that earlier they were guided by the process of self-control which has now given way to bureaucratic controls. The new managers insist more on rules and regulations than on human relations. They give little freedom to the workers at the workplace. There is thus greater degree of formalisation and also strict supervision over the workers. It is the new `culture` which is being opposed by the workers.
The pent up feelings of frustration and resentment against management, like a gathering storm, have resulted in volcanic eruptions leading to violent arguments between young workers and foremen on the shop floor. In the process, production has suffered, both quantitatively and qualitatively. The executive director of the company is seriously thinking of bringing about a radical change in the controls that are prevailing now in the company.
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QUESTIONS
1. What factors have led to the deterioration in the quality of company`s products ?
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2. What changes have occurred in the organisation culture over the past five years or so?
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3. Why do workers resist rigid controls ?
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4. Suggest changes in the control system to improve the quantity and quality of production.
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