How I Learnt to Let My Workers Lead by Ralph Stayer - Student Khushbakht Vaka ERP 11794 Date 25th Jan 2017 Article How I Learnt to Let My Workers Lead

How I Learnt to Let My Workers Lead by Ralph Stayer -...

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Student: Khushbakht Vaka ERP: 11794 Date: 25 th Jan, 2017 Article: “How I Learnt to Let My Workers Lead” Author: Ralph Stayer
In 1980, the Johnsville Sausage Company was headed by Ralph Stayer. Profits were above average for the industry and the financial statements showed every sign of health. The company was growing at 20% annually. Nevertheless, Stayer faced stiff competition. National competitors could outpromote, outadvertise, and underprice Johnsville, while local/regional producers could provide superior customer service. Stayer was also concerned about employee attitudes at Johnsville. Employees did not take responsibility for their work. The company could not face competitive challenges with such low level of employee attentiveness and involvement. Stayer realized that he had to change his authoritarian management style. He also discovered that the company had no clear goals. He then envisioned Johnsville as the most expensive sausage while maintaining the largest market share. However, he had to change employee attitudes in order to achieve his goal. Stayer conducted an employee attitude survey. He was surprised to find that employee attitudes were average. Stayer realized that this was due to his authoritarian management approach. Stayer created the agenda and his employees blindly carried it out. Since this approach could pose a serious risk in the face of increasing competition, Stayer decided to decentralize decision-making in the company. But this change was abrupt and almost forced on employees. Employees still did not make independent decisions. After 2 years, Stayer replaced his top 3 managers. Stayer

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