Production and shipping costs on the way home he

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Fundamentals of Financial Management
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Chapter 21 / Exercise 010
Fundamentals of Financial Management
Brigham
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production and shipping costs. On the way home, he started to outline the report, knowing full well that unless some miracle occurred, he would be ushering in a blizzard of pink slips for people he had come to appreciate. The plant in Oconomo had been in operation since 1921, making special apparel for persons suffering injuries and other medical conditions. Jim had often talked with employees who would recount stories about their fathers or grandfathers who working in the same Lamprey company plant – the last of the original manufacturing operations in town. But friendship aside, competitors had already edged past Lamprey in terms of price and were dangerously close to overtaking it in product quality. Although both Jim and the plant manager had tried to convince the union to accept lower wages, union leaders resisted. In fact, on one occasion when Jim and the plant manager tried to discuss a cell manufacturing approach, which would cross-train employees to perform up to three different jobs, local union leaders could barely restrain their anger. Yet probing beyond the fray, Jim sensed the fear that lurked under the union reps’ gruff exterior. He sensed their vulnerability, but could not break through the reactionary bark that protected it. A week has passed, and Jim has just submitted his report to his boss. Although he didn’t specifically bring up the point, it was apparent that Lamprey could put its investment dollars in a bank and receive a better return than what its Oconomo operation is currently producing. Tomorrow, he’ll discuss the report with the CEO. Jim doesn’t want to be responsible for the plant’s dismantling, an act he personally believes would be wrong as long as there’s a chance its costs can be lowered. “But Ripon’s right,” he said to himself. “The costs are too high, the union’s unwilling to cooperate, and the company needs to make a better return on its investment if it’s to continue at all. It sounds right but feels wrong. What should I do?” UKMM2023 Organisational Behavior Jan 2014 Page 14
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Fundamentals of Financial Management
The document you are viewing contains questions related to this textbook.
Chapter 21 / Exercise 010
Fundamentals of Financial Management
Brigham
Expert Verified
Q1. (a) Identify and describe the primary change happened in Oconomo plant. (b) Identify FOUR (4) driving forces for changed that are evident at the Oconomo plant and FOUR (4) restraining forces that Jim needs to consider if the manufacturing plant moved to Mexico. (c) Describe FOUR (4) common reasons people resist in organisational change. What do you think is the major underlying causes of the union leaders’ resistance to change? (d) If you were Jim Malesckowski, come out with TWO (2) implementation tactics that you would use to convince union members to change in order to save the plant. UKMM2023 Organisational Behavior Jan 2014 Page 15

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