The Nogo Railroad

Case-study

Group Members
Ashish goyal Amit Madkar Rahul Raje Guruprasad Priyanka Samant

Introduction
Alan Yates, a manager of the Nogo Railroad Company has decided to promote Dave Keller to communications manager. Dave Keller was responsible for two groups within the communications department; telegraph operators and clerks. His operating territory was consist of Washington, Idaho, and Montana.

 Dave Keller has discovered that between each group there are problems that have cause an increase in expenses and a lack of employees acceptance within his own department. The challenge for Keller was to resolve these problems without harming his own job and building up the moral in the company.

Problems
Macro
Organization culture culture and norms inhibit the introduction of
process improvements, changes in roles and responsibilities, and cooperation between union and management.

High employee expenses unionized workforce , collective bargain Low employee morale - Most employees dont feel that have to do extra
work, so other employees are overworked

No HR as a strategic function Badly negotiated Union Contracts 40 hrs of weekly pay, with no work
available, JD mismatched

No established recruitment processes -Nepotised No job descriptions to measure job output and performance No workforce during emergencies History of organized resistance by the Union and train crews

Micro
Nepotism and Featherbedding - favoritism granted to relatives or
friends regardless of merit

No upper management buy-In No authority to make changes, no

support from upper management to implement change

Obsolete HR policies, practices and procedures - The

company still has certain positions that are no longer required. People that fill these positions practically get paid and are not doing much. Also, they have no intention of involving in other activities, because it is not stipulated in the negotiated contracts that were made based on obsolete job descriptions
son in law

Internal Politics Daves temporary appointment in order to provide position for Rexs Bad contract language women could not work directly with radio
communications and train crew

Burdensome expenses - due to employee pay guarantees Inadequate manpower planning overstaffing of clerks

Causes
Unionized work force - The union is a restraining force that is blocking any
changes that could greatly improve this organization.

No Professional HR resources flaws in recruitment, JD designing,

compensation, no indication of HR providing development and guidance of policies/practices; no formal designation of authority; no oversight/participation in union negotiations, grievances or arbitration; no formal management training for leadership development; and lack of participation in the execution of strategic changes.

Excess workforce - featherbedding Policies that allow nepotism, featherbedding, and other inappropriate procedures "Scapegoat" tactics, unseasoned management placed in no-win situations with
expectation of failure

Lack of upper management support (No co-ordination, teamwork) Lack of change management process

Systems affected
Structural

 Psychosocial
Current culture unwilling to change The practice of featherbedding to actively provide job for family members Low employee morale created by biased recruitment process Reduction in expenses would decrease annual income

 Technical
To keep the large amount of relative employed with the company, employees were not working to their highest level of potential Clerks replacing Clerks, Telegraph operators replacing telephone operators Removal of fireman position from engine of the train will lead to organized covert (secret) slowdown of work Women were not to be sent beyond 30 miles for assignments from home place will lead to overabundance of clerks with no work to do

Managerial
Managers were not giving support to their counterparts. Current managers are either incompetent or just dont care.

Goals & Values

There is no company loyalty within Nogo Railroad Company. Every employee was worried about himself

Alternatives
Understanding CHANGE is the tool of success. Perform detailed job analysis to define job description, job specification like authority, responsibility, pay scale Implement formal leadership training and development programs Adequate training for smooth functioning Human resource planning and forecasting Right no.
of people available in the organization at right time

HR department must have a planned recruitment policy - based on merit or seniority Standard Performance appraisal system

Recommendations
Negotiate with key people Avoid Nepotism. New and Advanced Technology should be used. Job rotation. Work area can be broadened. Organization development has to be taken into account because it is all about managing changes in work processes, structures, norms. OD helps people understand, lead and support change.

OD INTERVENTIONS
Diagonistic Activities Team Building Activities Inter Group Activities Survey Feedback Activities Education and Training Activities Techno-Structural or Structural Activities

 Process consultation Activities. Life and career Planning activities.

Out come of OD interventions

Feedback Awareness of changing social-cultural norms Increased interaction and communication Confrontation Education Participation Increased accountability

THANK YOU