Reference no: EM133464825

Study Case :The Smithfield Medical Products firm manufactures high quality medical devices for the cardiovascular industry. They have contracts with three major device firms to supply heart catheters. Their middle-aged workforce is unionized, has had long tenure with the firm, and has a history of strained relations with management. However, because the firm is located in a rural community, turnover is low and the workforce has a vested interest in the firm's success. The founder also has a commitment to the community given his long-standing family ties. Smithfield has managed to perform adequately until now but the industry is changing. The firm currently faces additional demands from a new client who requires higher volumes at a faster pace. Industry quality standards are also ratcheting upwards. Smithfield is considering alternative ways of responding to these new pressures. One option is to open a new plant in another part of the country. However, such a move would be costly given the firm's considerable capital investment, its investment in the skills of its existing workforce, and its community ties. The question facing management, then, is whether it is possible to compete successfully with the existing workforce. The firm clearly needs to make some changes. But, management is worried about its ability to both think through what transformations are necessary and also how to sell them to the workforce. Discuss how Smithfield might proceed to meet the needs of its clients, to transform how it produces, and to address the difficulties it faces with its workforce.

QUESTIONS:

1. What should the new work system look like?

2. How are employees' rights preserved through the changes?

3. How could a union environment support the initiative?

4. What are benefits of these strategies, and how can the employee rights be preserved throughout the process?

5. What advice would you offer to the CEO of Smithfield?