MBA 203: ORGANIZATIONAL DEVELOPMENT

CASE STUDY ANALYSIS:

THE NOGO RAILROAD

In Partial Fulfillment

Of the Requirements for

Master in Business Administration

Graduate School Studies

University of St. La Salle

Submitted to:

Engr. Gerald Louis Poblador

Submitted by:

Adely Grace Tomaro

Angel Grace Siaton
  Russel Keane Apuyan
Cristi Marie Dimaano
Marilou Gabaya

December 5, 2020
 CHAPTER 2: THE NOGO RAILROAD

I. PROBLEM

Statement of the Problem:

Dave Keller needs to resolve his problems in his unionized employees: telegraph
operators and clerks without harming his own job and building up the moral in the
company.

A. MACRO

PESTLE ANALYSIS

POLITICAL
 Taxes that may affect the income of the company
 Construction of other modern transportation infrastructures that could affect
the company’s income generation
 Wage legislation
 Work week regulations
 Mandatory employee benefits
ECONOMICAL
 Infrastructure quality
 Skill level availability of workforce
 Labor costs and productivity
 Unemployment rate
SOCIAL
 Practice of Nepotism and Featherbedding
 Mostly female as clerks and male as telegraph operators
 Presence of union
TECHNOLOGICAL
 Recent technological advancements that might affect their steam engine
operations
 New ways to do repairs and maintenance
LEGAL
 Employment laws regards to composition of employees
 Health and safety laws that also guarantees employee benefits
ENVIRONMENTAL
 Payment during the winter season
 Steam engine no longer in use
 Environment pollution regulations in the railroad industry

1. Modernization problems on operations and practices

2. Poorly negotiated contract of unionized employees
 B. MICRO

SWOT ANALYSIS

STRENGTHS OPPORTUNITIES

Established company Modernization in transport infrastructures

Reliable infrastructure Availability of skilled employees in the
Many employees industry
New customers to be brought by
modernization

WEAKNESSES THREATS

Employees resistant to change Increase in unemployment rates

Practice of nepotism and featherbedding
No Human Resource Department
No upper management support
Practice of archaic traditions and
procedures
Potential of work delays and strikes
Competitor more advanced in technology
and easier adaptation to change
Rising expenses and cost of operations
Climate Change and Fuel cost

1. Favoritism: embedded in different levels of the company

2. Featherbedding: practice of limited output of work in order to provide more jobs and
prevent unemployment
3. Internal Politics: Dave Keller was temporarily assigned as communications manager to
provide position for Rex Kelly’s son-in-law
4. Inadequate manpower planning: overabundance of clerks which showed that there
was insufficient planning
5. Recruitment process: Heavily influenced by favoritism and featherbedding
6. Contract stipulations: women could not directly work with radio communication and
train crews

II. CAUSES
1. Unionized employees with poorly negotiated contracts
2. Employees are resistant to change
3. Company is unable to cross-train and have replacements between their clerks and
telegraph operators and other positions as well.
4. Nepotism and featherbedding
5. Lack of upper management support
6. Undefined responsibilities and authority
III. SYSTEMS AFFECTED
1. Structural
Organizational Structure
 a. No Human Resource presence
b. Too many employees in place that not enough work available for employees

2. Psychosocial
a. Threat of layoffs affects income of most employees’ families
b. Current culture unwilling to accept change
c. Practice of featherbedding limits work output to provide more jobs and prevent
unemployment
d. Low employee morale created by recruitment process that favored hiring of
relatives
e. Reduction in expenses would decrease annual income

3. Technical
a. There is a need to replace traditions with up-to-date technology
b. Clerks only replace clerks the same way as telegraph operators only replace
telegraph operators
c. Removal of fireman position might lead to organized slowdown of work
d. Women employees are not to be sent beyond 30 miles for assignments from home
place that resulted to overabundance of clerks without enough work to do

4. Managerial
a. Dave Keller was promoted as the new communication manager of the NoGo
Railroad. His responsibilities include supervision of the communication operations of
the telegraph employees and clerks, touring remote areas,, observing different job
functions, eliminating obsolete practices and modernizing the organization.
b. No upper management support
c. Most promotion are because of relationship

5. Goals and Values

a. Employees were not ready to take any additional responsibilities
b. Lack of coordination between employees
c. Communication between employees and the management is not set up properly
 d. Resistant to change

IV. ALTERNATIVES

1. Perform detailed job analysis to define scope, skills, knowledge and training required
A detailed analysis will provide complete information on job description, and job
specifications like authority, responsibility and pay scale.
2. Implement resource planning and forecasting to ensure proper staffing
The HR Department should ensure the right number and qualifications of people
needed by the company.
3. Implement standardized performance appraisal and management process
The management should set up and follow standard techniques of performance
appraisal
4. Implement formal leadership training and development programs
The company should provide adequate training to employees to ensure
effective and efficient operations.
5. Define a standard recruitment policy
The HR Department should have a planned recruitment policy that might be
based on merit or seniority and possibly employee recommendations.

V. RECOMMENDATIONS
Framework
1. DO Organizational Development in the company.
2. Use the different Organizational Development Interventions to answer noted problems.
Note that the employees are resistant to change thus it is important to first educate
them on the process of change.
3. Focus first on improving the shared culture then proceed on making changes as stated
in the alternatives starting on establishing a HR Department. Make sure to access
support from upper management.s
4. Continue on monitoring and evaluating performance as changes are implemented.
VI. REFERENCES

Fern Fort University. (n.d.). Canadian National Railway Company PESTEL Analysis &
Environment Analysis. Retrieved December 05, 2020, from
http://fernfortuniversity.com/term-papers/pestel/nyse4/2673-canadian-national-railway-
company.php

SHRM. (2020, July 29). Understanding and Developing Organizational Culture. Retrieved
December 05, 2020, from
https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/
understandinganddevelopingorganizationalculture.aspx