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