Reference no: EM133095628
Case Analysis for Human Behavior in Organization
Asian Motors Ltd. is an automobile spare parts company that has been in the market for 5-6 decades. It was serving the needs of the customers by giving product delivery on time with good quality. Asian motors had to walk a long history before achieving the above-mentioned. The workforce is the main reason for timely delivery and good quality.
Most of the employees have been with the organization for more than 3-4 decades. The one who joins the organization as a fresher will leave the organization as a retired employee only. Turnover ratio is very slow due to the feeling of satisfaction and job security provided by management.
Until last year everything was fine. During the last year, the scenario has changed. Lots of competitors entered the market and each one was well equipped with all modern technologies. Customers of Asian Motors started pressuring them to go for modern technology as part of their standard process.
The management is also ready to go for organizational development by accruing new machines and adopting all required modern technologies and allocating huge amounts of funds towards the plan. The management was fully aware that to sustain the business they have to go for organizational change and development. They hired a consultant to help them work out a plan for the change and find out hurdles in implementing the plan.
The consultant stated the following reasons in his report:
- Very old employees who are not much comfortable in adapting to the new system
- Chances of employees to show less interest towards training in the new machinery as their employment period will be very less due to their age.
- It is not advisable and won't be fruitful to invest the training and development amount on those employees who are going to retire in less than 5 years.
This started pressure in the minds of the employees about job security. The union leader talked with management and quoted "The place which feels it is our own organization which will never leave us aside or where we want to serve for our life becomes a question mark in front of us".
The management assured him that "we will never commit such things which will put the employees in the loss. There will be no question of job security here. And we all together will create modern plant equipment with the latest technology. Our plan is ready for that".
Questions.
- Discuss the state of mind of employees before the plan is discussed with them?
- Discuss the external factors that affect this situation?
- What would be the best possible solution or possible plan for management to solve the issue? You can discuss the pros and cons of the plan.