In: Operations Management
Employee Motivation PROBLEM-SOLVING APPLICATION CASE (PSAC)
A Fickle Cat : Long-time employees complain that Caterpillar has changed. John Arnold, a 35-year-old parts auditor at Caterpillar's distribution facility in Morton, Illinois, says some of his coworkers are on food stamps. Arnold has worked for Caterpillar since 1999. More than 10 years later, he's making $15.66 an hour.
To succeed today, does an employer have to worry about motivation? In recent years, Caterpillar, a Wall Street darling and mainstay of American manufacturing, has rolled back traditional extrinsic motivators.
Disparities
In May 2013 a feature in Bloomberg Businessweek noted that while workers were losing jobs, pay, and benefits, CEO Oberhelman prospered. In 2011 his pay rose 60 percent to over $16 million, and in 2012 to more than $22 million. So what serves as employee motivation in this environment? Maybe survival. The article quoted Emily Young, a welder at Caterpillar's Decatur plant: “You're basically expendable. For every one person who doesn't work, there's five waiting in line.” The same article quoted CEO Oberhelman affirming, “We can never make enough profit.” Weakened Unions. As Businessweek reported, Caterpillar toughed out a strike at its Illinois plant in 2012 for over three months. Eventually union workers agreed to virtually the same offer that caused the strike. Existing workers accepted a six-year wage freeze and reduced benefits. New workers would be brought in at a lower wage scale. In Wisconsin in 2013, union workers didn't even try to strike. When their contract expired, workers simply stayed on the job. After a few months of on-again, off-again talks, the workers agreed to conditions similar to the Illinois contract. Worsening Results. Recently Cat's march to higher peaks of profit have stalled. With greater use of natural gas and dropping coal prices, sales of big mining trucks (used in surface coal mining) also declined. This forced the company to scale back production and lay off even more workers. This on top of an overall drop in spending in the Asian mining sector contributed to Cat's decline in earnings.
Money Problem
Some industry watchers see Caterpillar's worries as a money problem. As in too much of it. Fortune senior editor Matt Vella, in a Fortune Brainstorm podcast with magazine staff, sees it this way: “The criticism from labor is the company is doing better than ever; why aren't we seeing some of the rewards of that? The company will say, ‘Well, we can't afford to give too much away because we don't know what's going to come down the road.’” The Businessweek article brought such questions to a head: Caterpillar has become a symbol of the growing divergence in corporate America between profits and wages. As a percentage of gross domestic product, corporate earnings recently hit their highest level in more than 60 years, and wages fell to new lows, according to Moody's Analytics. “What's interesting,” says Fortune writer Nin-Hai Tseng, “ … is that Caterpillar makes itself out to be this poster child of everything that went right with manufacturing in America. With that reputation carries a lot of responsibility…. [P]eople can ask … does it have a responsibility to pay its workers more?”
What Employees Say
While Glassdoor.com doesn't provide objective analysis, this job research site provides ready access to employee voices. The site includes posts by current and former company employees so people looking for work can research a potential employer. Most reviews include a simple yes or no on whether the reviewer would recommend the company as an employer. While there's no guarantee that all posts are legitimate, Glassdoor.com remains one of the best places to get a quick read on the way current and former employees likely feel. Reviews for Caterpillar vary. Some workers say good things about their future with Caterpillar and the corporate culture. But more critique the company. Critics of the company's policies include both current and former employees. Tellingly, many current employees who would recommend the company as an employer have misgivings. Major themes include:
You get a sense of the tone of many comments in this post from a former employee, let go after eight years: “They will preach values, morality, safety, people, and quality, but in the end they only care about profit. Never been so disappointed in what a company has become as this one.”
The Executive View
When Businessweek asked Oberhelman about increasing wages, he sounded wistful. He can raise wages “when we start to see economic growth through GDP,” he says. “Part of the reason we're seeing no inflation is because there's no growth. Inflation was driven by higher labor costs, not higher goods costs. Frankly, I'd love to see a
little bit of that. Because I'd love to pay people more. I'd love to see rising wages for everybody.”
Real GDP has grown slightly during the period in which Oberhelman has reduced and frozen wages, from a negative 3.1% in 2009 up 2.4% in 2010, 1.8% in 2011, and 2.2% in 2012, according to the US Dept. of Commerce. In the meantime, Oberhelman justifies the growing disparity by invoking competitiveness. For Cat to be competitive, his executive salary needs to increase dramatically. For Cat to be competitive, workers’ wages need to be reduced or frozen.
Then and Now
In contrast to its current frosty relations with labor, once Caterpillar was seen as an exemplar of an enlightened management that could justify spending to increase employee engagement by its return on investment. As recently as 2006, a human resources guide on employee engagement cited Caterpillar as a success story. The guide noted Caterpillar's gains as follows:
Now Caterpillar has decided to increase profitability almost solely by going leaner. The staff at Fortune doubt that today's Caterpillar will ever restore the kinds of manufacturing jobs of the past—jobs that brought US workers into the middle class. Instead, Cat hews to a global view of managing labor costs.
The company continues to increase its overseas operations in places like Korea, Russia, and Brazil. Over half of its labor force and its profits are overseas. Domestically Caterpillar continues to reduce and reshape labor, moving to lower pay scales and benefits, and with a greater reliance on guest workers. (Oberhelman has lobbied to make it easier for corporations to bring in lower-cost, highly trained foreign PhDs.) As modern manufacturing continues to do more for less, organic demand for labor will continue to decrease.89
Time will tell if the company can remain competitive with a primary focus on managing costs only, or if it will find reason to elevate employee engagement as a company priority.
Apply the 3-Stop Problem-Solving Approach to OB
In: Operations Management
In: Operations Management
1. Discuss the major corporate-level strategy formulation responsibilities, and how they are different from business-level strategy formulation responsibilities (review ch. 5)?
2. Why might an organization choose to diversify? Define related and unrelated diversification?
3. What are Mergers and Acquisitions? What are some potential problems with it? Define Poison Pill.
4. What is BCG Matrix? Explain the characteristics of a question mark, star, cash cow and dog.
In: Operations Management
I need assistance in discussing this topic. Business, society and the coronavirus. Based on the unique circumstances that we are facing due to the coronavirus at this time, this topic will focus on business, society and the coronavirus. How has this virus affected business and society?
In: Operations Management
Transition from paper medical records to electronic records.
Create a project that includes steps, deadlines and training for the transition.
In: Operations Management
What are the big players in the cruise industry? Give a brief introduction to each company, Discuss their situation today under the impact of COVID-19. What kind of changes do you see in this industry after the outbreak? brief explanation (2 paragraphs)
In: Operations Management
im applying for a customer service clerk job as a student who just graduated college please send an example on how to do this.
In: Operations Management
This case is based entirely on hypothetical information –please use only the information in the case and do not use any information about the products/brands through other sources. Ensure that you study Chapter 2 of the textbook for the BCG Growth Share Matrix and Diversification Analysis/Market Product strategies and Matrix. Please do internet based research to understand the concepts of Harvest, Invest, and Divest)
The firm Johnson-Evinrude Inc (or JE, to keep it short) has been in existence for more than two decades. However it is confronted by a changing technological and market environment.
While it is well known for the manufacture and sale of two stroke boat motors that have enjoyed a positive reputation, it is now facing increasing competition from four stroke boat motors. In terms of market growth the highest growth rates are being experienced for four stroke-high horse power motors; Johnson is testing motors of this type but their products seem to have multiple defects. The same type of motors of Japanese brands are flawless. It is true that in traditional two-stroke high horse power motors Johnson has a high market share –almost 65%, but this type of motor has almost no growth in the industry as a whole.
In the low horse power, 2 stroke market Johnsons share is minor and in the industry it is low horse power four stroke motors that have a rapidly growing market. JE do not have any of their own products in this category. Many Chinese manufacturers make these as generic unbranded products and the Chinese products are of low cost and good quality
JE has also been marketing trolling electric motors. The JE design is very well regarded in industry and with fishing gaining popularity as a sport trolling motors is a growth area. However, Johnson’s share is not as high as it could be because of inexpensive Chinese substitutes. While the Chinese products take advantage of lower manufacturing costs they lack the design sophistication of JE products.
Questions: Discuss the above from the perspective of :
1. Product portfolio management (the BCG or Growth Share Matrix approach)-for this classify the different types of motors in terms of the BCG Matrix – Rate of Growth of the Industry and Market Share of the Firm; Cash Cows, Dogs, Stars, Question Marks; make sure that you do this for every type and category of motor.
2. Try to analyze the portfolio/different motor categories in terms of the diversification or product –market matrix
3. Make suggestions for the overall marketing strategy for JE. You may like to ‘classify’ products (whether current or planned) and then develop your approach for them.
4. Discuss the possible problems that the comp
In: Operations Management
Review Question 9 in Chapter 12 of the textbook.
The Company you work for is in the process of determining whether to have an information security audit (ISA) performed. Even though the Company is not (yet) required to have an ISA for compliance purposes with laws, rules, and/or regulations, they are very aware of the benefits such audit can provide. However, they also know how pricy these specialized audits are. Would you be inclined to advise your Company go through such type of audit, yes or no? Explain your position.
Response parameters:
The initial post should be between 250 and 350 words
The initial post must demonstrate effective communication skills and analysis that is thoughtful and objective
You must support your responses by searching beyond the chapter (i.e., IT literature and/or any other valid external source). Include examples, as appropriate, to evidence your case point
Use APA formatting (including working web links) to cite all of your sources
Plagiarism
You are expected to write primarily in your own voice, using paraphrase, summary, and synthesis techniques when integrating information from class and outside sources. Use an author’s exact words only when the language is especially vivid, unique, or needed for technical accuracy. Failure to do so may result in charges of Academic Dishonesty.
Overusing an author’s exact words, such as including block quotations to meet word counts, may lead your readers to conclude that you lack appropriate comprehension of the subject matter or that you are neither an original thinker nor a skillful writer.
In: Operations Management
Select 5 international brands and make a swot analysis.word count should be 4000 words.please dont copy.ill check the plagiarism.Can u please do it fast.
In: Operations Management
Demand for oil changes at Garcia's Garage has been as follows:
|
Month |
Number of Oil Changes |
|
January |
47 |
|
February |
41 |
|
March |
63 |
|
April |
47 |
|
May |
57 |
|
June |
44 |
|
July |
52 |
|
August |
71 |
a. Use simple linear regression analysis to develop a forecasting model for monthly demand. In this application, the dependent variable, Y, is monthly demand and the independent variable, X, is the month. For January, let
Xequals=1;
for February, let
Xequals=2;
and so on.
The forecasting model is given by the equation
Yequals=nothingplus+nothingX.
(Enter your responses rounded to two decimal places.)
In: Operations Management
Reflection Questions
Think about your reasons you would consider a career in sales and the reasons you would not consider a career in sales.
Write a 1 page reaction to the following statements about sales positions. Share any experiences you might have either as a buyer or a sales person, either positive or negative.
Statement 1: Sales people push products on people
Statement 2: You don’t need a degree to work in sales, anybody can get a job in sales.
Statement 3: Salespeople are born, not trained.
In: Operations Management
Electric Veichles
who are the relevant stakeholders? what are the interest of each stakeholder? what is the power of each stakeholder? how are the stakeholder coilation are likely to form? Please answer in 300 words.
In: Operations Management
In: Operations Management