Patterson Operation

CASE STUDY

Patterson Operation

Submitted by:

Group OHANA

Bala, Clarisse Marielle

Borrero, Arno

Cabal, Elissa Mae

Daz, Shly Karina

Lacson, Justine

Namoc, Joanna Grace

Submitted to:

Ma’am Aiza Herrera

Mgt 101 B

Patterson Operation: A Case Analysis

1. Point of View

In this case, the management faced problems of low productivity, low employee morale and high unit costs for the assembly section. Even the problem of severe space for expanding manufacturing and assembly operations was confronted by the management so for the best judgement, the management is indeed the most appropriate point of view for this problem since they are the ones in charge of deciding the company’s movement, the change of location of the assembly for instance and more importantly, they are the over-all evaluating body for the entire company’s operations.

1. Statement of the Problem

Should the leadership style at the Patterson plant be implemented throughout the Carrington, Inc?

How/What can be done so that the leadership style implemented at the Patterson plant be also effective if it will be imposed throughout the Carrington, Inc.?

1. Relevant Facts of the Case

• Carrington, Inc. is a pharmaceuticals company that engages in worldwide operations.
• Carrington, Inc. employs 15000 people.
• Carrington, Inc. has a midsouth plant.
• The midsouth plant has a problem with low productivity, employee moral,and high unit costs in the assembly part called Section 10.
• The company employs a Halsey 50-50 incentive plan.
• Section 10 uses roller-type conveyor belts for the products.
• The working condition of Section 10 is great; the area is clean, well lit, and air-conditioned. There is also a cafeteria.
• The discipline in section 10 was poor and the supervisors often have problems.
• The employees in Section 10 eventually became young inexperienced workers because of a bidding system used by the company and because the Section 10 had a negative reputation to the other workers.
• The assembly was moved to the facility in Patterson Street, called the Patterson Operation.
• The facility in Patterson had bad working conditions being poorly ventilated, lit, and had no cafeteria.
• The assembly component of the company in Patterson was headed by Fred Hammond, an African-American first-line supervisor.
• Fred Hammond introduced innovations or having a less strict management of the assembly with concerning working hours, environment, and attire.
• The assembly experienced a 32.8% increase in Patterson.
• Older experienced workers wanted to work in Patterson because of the working conditions.
• Fred Hammond was replaced by May Allison who handled the assembly the same way and was received just as well.
• May Allison allowed the workers at the assembly to change the working hours during summer because of the heat even if it’s against company policy.
• Absenteeism, tardiness and turnover in the Patterson plant are not better in the main plant but are considered insignificant.

1. SWOT Analysis with Strategies

1. Evaluation of Alternatives

• Extend the program to the rest of the 11000 employees

• Pros: The 25-35% health care costs will be reduced
• Cons: The program is invasive and will result to the leave of the employees who belong to the union

• Do not continue implementing the wellness incentive program

• Pros: The union employees will not think of leaving the company.
• Cons: The company will have to bare with the health care costs.

• Look for other cost-reduction programs

• Pros: It will lessen the health care costs at the same time keep the union employees.
• Cons: It may not be as successful as the wellness incentive program.

1. Recommendations

• Extend the program to its 11,000 employees because it’s worth the downsides and the penalty could be removed.

Implementation Plan

• Extend the wellness incentive program to its 11,000 employees.

1. Contingency Plan

• Look for another cost-reduction program that is not invasive towards the personal life of the company’s employees.