Insights:

Do not look as management and labor, considered as partners

improve the quality of product when feel good the way they treated and pass them to the customers

employees who feel that they are part of the team are more motivated for the success of the team

opportunity to grow

investment on human capital

skills requirement of the job is growing faster, employers hungry for talent

organizations can retain and attract skilled workers will be the survivor

employers retain high skilled employees

workers are considered partners that given trust and responsibility

higher productivity

Problems:

Management and union grievances are frequent

1978, one man strike

Management do not accept suggestion. They felt they can do something to make a positive impact to
the company

Manager was very receptive to the employee’s idea

More people handling the freight to reduce the damage

Filed complaint to the manager under GFT Program

How to address issue?

Change the culture of the company

Workers have a control over their own work life

Make everyone understands the company’s mission to critical step to gain employee trust and build
integrity

Employees couldn’t be productive without knowing the business process; conducted trainings and
seminars about product knowledge

Employees at all levels were educated about the business; they are empowered to make decsisons
Taking risks and took 97% of employees’ suggestions became a leader company and double the
company’s profit in just a month

How do you get people to care for the company?

Management recognized that people are most important of asset of the company

Employees can discuss the results and make an action plan

Given workers flexibility work shifts due to difficulty of schedule

GFT assures that the standard policy; allows employees to be heard

Managers coordinate rather than dictate

PRESTON TRUCKING

-one of the best companies to work with because how they treat employees

-workers considered partners who are given the trust and responsibility to run their own jobs

-everybody in the organizations are associated; employees are part of the decision making

-trusting workers and sharing responsibility results employees to care more about their company that
leads to higher productivity

Problems:

-struggling to stay afloat in an agent the regulation

-management and union grievances were frequent

-higher complaints from workers

-labor and management tolerated each other because they had to

-driver was upset about the rules resulted to the one-man strike, refusing to remove his truck from an
auto plant; he wanted to illustrate the importance of the worker

-realizing the couldn’t afford to have labor confrontations and survive in the marketplace

-employees couldn’t do their best work without knowing more about the business

-20 years ago, there are instances where an employee approached a CEO for suggestion but they didn’t
get back to that employee to accommodate the recommendation

-Preston Trucking used to be the laughingstock of the industry due to progressive management
philosophy is now one of its leaders

Solutions:

-management decided to change the culture of the company so workers can have a control on their own
work life

-Managers call coordinators bec they didn’t have to manage people anymore, they coordinated the
workflow; Workers call associates forming a partnership with coordinators

-company’s mission shared to the workers (drivers, clerical personnel)

-communicating the company’s mission is the first step toward gaining employees’ trust

-shared ideas and goals; build integrity in the organization bec people live up to the mission at all levels
to establish integrity and trust

-conducted week long session called Product Knowledge Seminars; employees at all levels will be
educated about the business
-workers are informed and empowered to make decisions; they began to feel extensive purpose and
commitment to their jobs

-asked employee to design the New Philadelphia Terminal Bldg. (management asked for a suggestion)

- Now, people are excited bec they feel that they can do something to have a positive influence to the
company Will Potter – Chairman and CEO

-Driver John Wilson thought a way to reduce the amount of damage freight; reorganize the freight
loading process making it more profitable for Preston and causing less damage for American Honda

-Driver John suggested to the manager and he was receptive. He planned to assigned a separate trailer
for each terminal location with fewer people handling the freight thus damage would be reduced

- In the first year, revenues for Honda account doubled

-Since management philosophy was implemented it gave employees an opportunity to be heard so

company would grow financially and create jobs and build the welfare of the company

-Preston took risk with the driver’s idea and they tapped to the most valuable resource

-Today company uses 97% of its employees’ suggestions; Now, attrition rate is low and there’s a
waitlisted aspiring employee who wanted to work with Preston

-In the early days during the transition to the new culture, managers had a hard time adjusting and some
left the company

FEDERAL EXPRESS (FEDEX)

-to get people care for the company, they must have a CEO who believes to have a system like FEDEX
that a direction to move in not just a program in a shelf and install like a piece of equipment

-Jim Barksdale (CEO, FEDEX) people is not most important asset

-management recognized that people are the most valuable resource by allowing employees to make
their own decisions; management is finding that employees morale is high and productivity is up

-Through an annual survey program called Survey Feedback Action, employees have a say on improving
their working conditions

-Difference from other survey program is that managers and employees discussed the results and
together they create an action plan that puts employees’ ideas to work

-Culture at FEDEX not only allow employees to create ideas to improve their working conditions but also
allow managers to implement those ideas

-Employees well-being is most important to FEDEX because the company have established a formal
policy on fairness

-Workers who have complaints can bring it to the management to a policy called Guarantee Fair
Treatment Procedure; managers are required to respond
-GFT established to have a standard policy and promotes inclusivity and diversity

-When employee has a complaint and feel that it’s a peer review and

-GFT allows employees to be heard and treated fairly to devote their energies in making the company
profitable and successful

Problems:

-From the employees’ feedback, they think that Debbie Burnham (Manager Customer Invoicing) is strict
on the scheduling of the workers’ hours

-Manager was reluctant to approve the new policy due to her experience when she was in a clerical rank
there are strict working schedule

Solutions:

-management acted with a new policy giving workers flexibility as long as they can complete the 40 hrs a
week or as many as 10 hrs per day

-Managing director said that managers have to be part of the operations so they won’t feel that they are
losing control. They have to trust their subordinates in order to allow them with flexibility

-save a lot money, backlogs have decreased to 70%

-receiving good feedback from the employees that they feel they are professionals

-survey was conducted regarding the GFT, 80% that having Fred Smith as CEO sitting on the appeal
board is very important to the employees

QUAD GRAPHICS (how can companies improve the quality of their workplace?)

-teamwork and trust illustrate Quad’s commitment to innovation

-innovation not only in the field of printing but how people are treated

-managers coordinate rather dictate

-giving employees more responsibility and making them owners, they are partners to what they say and
what goes on reason why employees stay

-employee has a little supervision and allow them to do what they want

Problems:

-Founder witnessed problems associated with dictatorial style of management and employee rules

-he formed QUAD with a philosophy that emphasized trust and respect for the individual
-organizational structure would blur the distinction between the management and employee

-company is concern what is happening with the individual and held classes for personal development to
make people grow

-allowing people where they hope they wanted to be

-During 3 days, not only one manager set foot to the printing plant that resulted both sides to
strengthen and grow

-CEO went far and beyond in what they call enlighten management style with no time clocks, no
business cards, supervisors and workers with the same uniform issued everyday

-Quadracci has no law and personal department, he says that he doesn’t need them; put programs that
related to employees to better attend their needs

-Each Quad plant has its own fitness center for their wellness curriculum

-Employees can undergo cholesterol screening and earn Quad dollar for exercising

-Each facility has its own employees’ assistance program where counselors stay for hours to help the
employees with their personal problem

-Formed day care center to be an educational environment and hired full time professional teachers to
attend 90 children in 7 classrooms

-He implemented the transcending 3-day work week in the quad plant and set up enrichment program
like a motorcycle safety course to educate an interested workforce during their 4 days off

The success of the three companies show that dictatorship in the business don’t work anymore, what
does work is a management style that recognizes the value of the worker. By treating workers with
respect, trusting them, involving them in decision making and communicating to them the direction of
the business. These companies are tapping to the most valuable resource. When employees find more
satisfaction in their work, morale improve and so the quality of the product and service provided. The
bottom line has never been healthier, by investing on their workers, they are investing in their future.

Solutions: