The Final Paper - Agem Electronics Corporation Thomas G...

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Agem Electronics Corporation Thomas G. Cummings University of Southern California Team Case Study Tenny Mickey - 14727 - Friday 12PM Joel Avery Xiaoxiao DariceNicole Min David Green Kira Davis-Quarrie Andrea Dorothy Chan Reyes Justin Yashouafar Francisco Landaverde April 6, 2007
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Background Facts of the Case The Agem Electronics Corporation instrument assembly team has clearly proven to be a productive group of workers. Led by Larry Fisher, the profit position for instrument manufacturing operations is now one of the best in the company. Fisher’s close relationship with his employees creates a working environment where people are excited to work and are motivated to meet their quotas according to their work schedule. Fisher’s amiable and approachable personality, combined with the large amount of freedom granted to his workers, motivate each employee to work toward the greater good of the company. The statistics clearly confirm that this group is efficient. However, there is still room for improvement. In order to maximize company profits, this instrument assembly team must be even more productive and efficient. To accomplish this goal, a few problems within instrument manufacturing operations must be addressed. The widespread notion, “If it ain’t broke, don’t fix it” doesn’t apply to the business world. Agem needs to improve the wheel rather than simply keep it rolling. The Problems and Their Causes The overall issues within this corporation deal with its organizational design, authority structure, human resources management, and technology. Under the current organizational structure, many staff members are left unsupervised resulting in a decrease in productivity and efficiency. Each department lacks a true supervisor to manage workers within every group. The bases of power other than Larry Fisher are non-existent as there is no authentic authority figure on each instrument team. After all, Fisher’s eyes 2
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cannot be everywhere at once. This was very evident during incident number 2 when Betty dropped a $125.00 subassembly right in front of her “supervisor” Sally. A $125.00 loss in resources is a $125.00 loss to the company. A true authority figure would immediately report this to a manager. In this case, a simple friendship between Betty and Sally keeps this information undisclosed to Larry Fisher. Incidents such as these happen because there is no form of surveillance over the employees other than Larry Fisher’s eyes. Along with this problem, workers don’t exceed their scheduled quotas because there isn’t any motivation to do so. Without supervisors, workers don’t feel pressured to keep away from those extended breaks. The standards that Fisher sets create an environment where employees settle for just being average. There is no competitiveness within the company to bring the best out of the workers. So long as they meet their schedule, everything will be alright to them. It is almost as if the character of this company has no ambition. Even though they are profitable, their simple, low formalization structure is still holding the company back.
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