What is the primary problem in this case?

The case of Consolidated Automobile is a classic basic case of management-labour

conflict in an assembly line manufacturing set-up. Here we will deal with how
management can make use of theoretical approaches in solving problems or conflicts
so that the right decision can be made. The primary problem is that how will the
production in the assembly line at consolidated automobile manufacturers be restored.
What would each of the approaches to management
analyse the case?
1. The Classical Approach to Management
The classical approach to management focuses on improving organizational efficiency in order to
increase production. In the case, the production rate of Consolidated Automobile Manufacturers, Inc.
was below quota. When Sam Winfare took the post as the supervisor of the assembly line workers, the
production rate increased. The changes made by Winfrey definitely increased the production rate but
have resulted to the uprising of the workers which in turn lead to the production loss of the company.

2. The Behavioural Approach

The behavioural approach focuses on increasing the production through understanding of people. If
there are good working conditions, the output also of the employees will be remarkably well. In the case,
the management may need to revise/review/update the policies pertaining to the welfare of its
employees. With its problem with the cafeteria food and heat in the metal shop, the management should
also think of the safety and convenience of its employees. If there will be improvements, there is a big
possibility that the employees will not be disgruntled anymore and be motivated to work more to
increase the production rate.

3. The Management Science Approach

The management science approach focuses on the use of scientific method and quantitative techniques
to increase organizational success. Since the production output has been chronically below quota, there
may be existing inefficiencies in the production process. In order to achieve efficiency in the production
process, Winfare may develop and implement mathematical framework/model to optimize production
process in order to produce more output.

4. The Contingency Approach

The contingency approach emphasizes that what managers do in practice depends on a given set of
circumstances – a situation. In this case, since Strong and Cane shut off the electric power supply, this
resulted to production loss of $360,000. With this problem, the plant manager is now pressured to
accomplish 2 objectives, which are, to resume production on the assembly line and develop policies to
prevent future interruptions in the assembly line. The actions that the plant manager should do will
depend on the gravity of the situation and his own management style.

How would the manager restore the production on assembly

line?
1. Retain Winfare in the position and conduct an open forum discussion between the
management and the workers union.

2. Transfer Winfare to another role and hire somebody to replace him as a plant supervisor.
3. Management should temporarily suspend Strong and Kane due to their inappropriate means of
voicing out their grievance towards their supervisor, Sam Winfare.
 4. Terminate Strong and Kane and increase awareness of the employees that whoever follows or
commits unacceptable actions will be terminated as well.
5. Provide incentive to those workers who will return to their work.

What policy, if any, should be developed to prevent future

production interruptions?
1. The management should enhance the physical security of the source of the power supply
and the critical areas of the plant directly affecting plant operation.

2. The management should develop a Business Continuity Plan (BCP) which aims to ensure
continued operation of the plant in the event of disruptions (i.e. labour strike, loss of
power).

3. Cross training of employees to ensure that skills are not concentrated to certain groups of
employees to serve as a contingency should there be unavailability of skilled manpower.

4. Alternate electric supply source to ensure availability of power supply for the plant operations.

If there is an underlying struggle for power in this situation,

precisely where does it lie? Which theoretical approach should
be best suited for this case?
An underlying struggle for power in this situation of the case study would be Workers may not
have confidence in Winfare’s supervision since he is the subject of the protest which could affect their
productivity. It may be difficult to find somebody with the same qualifications as Winfare. A new
supervisor is not a guarantee that the incident will not occur again. Some workers may sympathize with
Strong and Kane and may view the management negatively. The plant will lose two resources, which
creates a threat of losing additional resources if other employees will sympathize with Strong and
Kane.Providing incentives might be costly for the company.

McClelland found that power-motivated individuals were best suited for leadership positions within a
company. If they were able to effectively delegate tasks in the workforce, they were often able to be
successful leaders. This does not mean that all power-motivated individuals will make good leaders.

Achievement-oriented individuals will change the situation or the location if they feel like it is not
meeting their needs. The do not like working in groups because they do not like having limited control
over the outcome. Instead, they prefer to do work where the results are clear and visible. Affiliation-
motivated individuals work well in a team, they are often not the best employees. They are not
motivated to do better as they are content to stay in their position. There is no drive to improve their
employee status or their personal position, which makes them, in effect, the least effective workers.

Behavioural Approach is the best suited approach for this case.

The initial step to increase the productivity from zero was derived from understanding and addressing
the concerns of both opposing parties. Retaining Winfare will prevent a precedent that demands of
workers can be granted simply through inappropriate actions. Management will still be able to take
advantage of Winfare’s expertise. Through the open forum, management will be able to clearly identify
the root cause of the workers’ grievance and be able to develop solutions/programs that will address it.