CASE STUDY ANALYSIS:

LEADERSHIP CHANGES IN ALCOA

SUBMITTED BY:

BUMAGAT, LANZ NIMUEL A.

CALVO, JHOANNE C.
CASAURAN, JEAN CARMELA A.

BSA 2-1

SUBMITTED TO:

PROF. MINERVA D. FERRANCO

JUNE 10, 2022

BACKGROUND OF THE STUDY

Great leadership usually starts with a willing heart, a

positive attitude, and a desire to make a difference. This
encompasses the characteristic of Don Simonic during his tenure
as a plant manager of Alcoa. Before, Alcoa is part of the Fortune
500 firms as they bagged the 79th place with a total annual sales
of $23.96 billion last 2004. 

Despite being one of the largest companies, Alcoa faced

severe problems with respect to an unacceptable rate of serious
injuries and unprofitable operations. First, in terms of
occurrences of injuries, the management decided to lay off
employees to cover up for the issues of the company. In return,
it increased their cost per unit sold where in fact, they
established open systems, team-based culture adapted from socio-
technical systems theory.

Socio-technical systems theory asserts that both social and

technical are significant elements of the systems. Within an
organization, people work towards one goal in which complying
with the processes, use of technology, and business operation
share the same corporate culture and norms. The main reason
behind Alcoa’s losses was the absence of the interdependence of
the elements mentioned. They lack accountability, poor quality
control, inadequate leadership, and low morale. 

To resolve the company’s problems, Don Simonic, and his team

members, Tom McCombs, Robert Crosby, and Patricia Crosby, were
entitled to lead the management. The change in the structure
unbelievably caused impressive results for Alcoa. Simonic used
single-point accountability to achieve its goals.
It employed consultative decision-making as the manager decides
the final decision while communicating with the team. Cadre is
the group of people who are tasked to observe and evaluate the
change process while participating in the process. Indeed, this
systematic management brought significant changes to Alcoa. 

PART II: POINT OF VIEW

The group commends Don Simonic and his team members, Tom
McCombs, Robert Crosby, and Patricia Crosby. Considering that
Alcoa is at the edge of dissolving its business operation, the
team managed to change matters the way they should work. This
proves the study of the impact of leadership on organizational
performance as it affirms that Leaders who inspire and empower
their teams have a greater influence on their team's behavior.
Inspiring and empowering employees fosters loyalty and trust,
both of which contribute to healthy, productive business culture.

PART III: STATEMENT OF THE PROBLEM

1. What are the effects of Don Simonic and his team members
leaving the plant?
2. What are the effects of management structure on Alcoa’s
profitability?
3. What are the effects of effective leadership on Alcoa’s
business performance?
PART IV: STATEMENET OF THE OBJECTIVES

The new leadership strategies by Don Simonic, provided a new

focal point for the company's temporal growth. They are able to
turn the business around for the company. This will be the new
standard of the company, now the company needs a leader who’s
motivating leadership as one of the important aspects to growth.
Striving for excellence not only for the business but also for
oneself. Everyone should take responsibility for themselves and
operate like a leader who knows what’s best for co-workers and
company. Employees who work in a pleasant setting are more likely
to excel in a healthy manner. This is the type of leadership that
businesses should adopt: success for the company while not
neglecting its workers. Employees are the company's most
important assets; a company cannot succeed if its employees do
not feel safe at work. An organization with a sole goal with the
strategic leaders, not just leaders but “strategic leaders” in
the field can turn things around. Attain higher goals and ensure
the company's long-term success.

PART V: AREAS OF CONSIDERATION

Strength

 Strategic leaders can anticipate what is coming, this is an

advantage to see potential consequence of the decisions
made.
 Long-term success by engaging employees at all
organizational levels to achieve goals set.
  Product and process optimization ought to be a constant goal
of strategies.

Weaknesses

 Standing out from your team in a way that elevates you above
them.
 Leaders being overly critical of their teams and
subordinates.
 Providing ineffective feedback, this can leave employees to
lose its direction towards the goal.

Opportunities

 Have the power to empower yourself and your team to new

heights.
 Influence people, strategic leaders are persuasive and can
persuade others to follow them and believe in his goals.
 To ensure success, all employees must have active
participation in the process which is a great experience to
be remembered.

Threat

 Acting without integrity, honesty and integrity are regarded

as vital qualities in a successful leader.
 Effective communication is essential for an organization's
seamless operation.
 Failure to establish clear aims or goals this will weakened
and disorganize the workplace.
Part VI: COURSE OF ACTION
1. Convince Simonic to manage again the Alcoa Plant located at
Addy, Washington to bring back the momentum.

Advantage:
 Possibility to re-open the plant, chance to give again
the job of every workers and continue the operation
together its competitive edge.
 Simonic can also contribute new strategies for the drop
in price of magnesium and other possible factors that
will help the industrial magnesium plant stable.
Disadvantage:

 Time-consuming since Simonic was already enforced in

different plant operations
 Can be denied/refused by Simonic as he already manages
it and nothing happens after he leave.

2. Conduct an overall meeting to seminar every workers on how

to perform their designated task responsibly.

Advantage:
 Enhance knowledge and skills of every employee that
will definitely contribute hugely to the triumphant of
the company.
 Establish a mutual relationship to other workers that
can also give strength to the company.
Disadvantage:

 A chance that workers will not totally comply with all

of the given responsibilities
 Consumes lot of time because everyone has their own
concerns during the meeting
 Allotting additional cost and expenses because it is
not part of their work days.
 3. Prepare for a back-up/feasible plan to avoid any negative
impact and protect the total plant operation.

Advantage:

 Help the company be physically and mentally prepared to

any hindrances they might encounter in managing and
controlling different industrial magnesium plant.
 It can be share in different Alcoa branches that will
give them knowledge on what approach they will use when
that specific problem arises.
Disadvantage:

 Time consuming as back up plan need more critical

thinking and analyzation that will be contributed of
every corporate management and departmental heads if
any.
Part VII: RECOMMENDATION
The best approach for this problem is to provide feasible
plan whenever these Alcoa industrial magnesium plant wants to
reopen their sites at Addy, Washington. Their management needed
to take the risk and ultimately give their best effort to this
location. Remember when Simonic handle it, it results to higher
profitability and lower cost. There is also a chance to repeat
it, but with proper management. Remember that higher risk takes
higher return.
Part VIII: PLAN OF ACTION
A. Convince the management authority at Alcoa’s Industrial
Magnesium plant office about how Addy, Washington past
achievement contribute highly to the overall performance
of the company.
 Show its positive result like the unit cost reduction,
the recovery of magnesium and the serious-injury
frequency fell.
  Proposed workers who have an expertise for the
magnesium production and other departments to ensure
the company’s assurance for its success.

B. If the company approves your proposed plan, reevaluate

the business operation when Simonic leads it.
 Figure the different hindrances Simonic handle
successfully.
 Figure also his approach if it was timely-bound
right now.
 Prepare back-up plans for every negativity arises o
lessen negative approach in the company.
C. Observe and Monitor
 Analyze every approach you do to resolved the
issues, figure its strength and weaknesses.
 If plan A was not totally efficient, proceed to plan
B.