The production costs were reduced

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Reference no: EM132138277

The culture set by the new CEO, Tom Lawrence, was Mission culture. He wanted National Industrial products to achieve goals, such as sales growth, productivity, or market shares. He also implemented a reward system for the employees. They were rewarded generously, if the productivity, sales and profit goals were met. Those who couldn’t meet the goals were chided in front of their colleagues to set an example.

The advantages of the set culture by Lawrence was that the production costs were reduced by almost 20 percent. He was also able to increase output and sales by 10 percent. Lawrence was able to achieve his set goals within the first year of his presidency at the National Industry.

The disadvantages of the culture were the low morale and high employee turnover. Turnover was at its highest, within one year, 3 well respected and experienced National managers quit the company to work with competitors. According to the survey conducted, the employees viewed their supervisors with a touch of fear. They believed managers were obsessed with profits and didn’t care about the worker. They also expressed that the friendly atmosphere was replaced by aggressive internal competition.

Do you agree or disagree with this thread and why or why not?

Reference no: EM132138277

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