Describe the culture set by new CEO Tom Lawrence. What are its advantages and di

Question

Describe the culture set by new CEO Tom Lawrence. What are its advantages and disadvantages?
Part 5: Managing Dykami people right so they would have a sense of loyalty to the good," he told his managers. "If company, If business was slow, he would find something work, get rid of them and find so else for workers to do, even if it was just sweeping the He often referred to workers who "If people don't want t nd find someone else who doey company couldn' afford to lose skilled workers who were Lawrence established str so difcult to replace. "If you treat people right,"he said, for his vice presidents and de lor, rather than lay people off. He figured the changes at National as-crybal complained a they'll do a good job for wandards for the various departments, and he trusted his and ordered them to do the same for their employees, l weekly meetings with each manager to review nd discuss problems. All employees were po ar performance reviews. A you wirhout your having to d substandard performance was to be given one w for managers and team leaders several times each year. weeks. And, whereas managers and sales re Carpenter's approach had seemed to work quite well for had once been paid on a straight salary basis, wirlh much of National's history. Employees were very loyal being the sole criterion for advancement, to Carpenter and the company, and there were many implemented a revised system that instances in which workers had gone above and beyond munagers to run their departments as they saw fit. BH senioen rewarded them sales, and profit goals. For those who meeting productivity, call of duty. For example, when two National pumps met the standards, rewards were generous, including la at supplied water to a U.S. Navy ship failed on a bonuses and perks such as company cars and first-class Saturday night just before the ship's scheduled departure, travel to industry meetings. Those who fell behind wen two employees worked throughout the night to make new often chided in front of their colleagues to set an exampe seals and deliver them for installation before the ship left and if they didn't shape up soon, Lawrence didn't hesitate port. Most managers and employees had been with the to fire them. National, production costs had been reduced by 20 percent, while output was up 10 percent and years, National's competiniveness began to decline. Four increased by nearly 10 percent as well. However, for many years, and National boasted the lowest By the end of Lawrence's first year as president of However, as the industry began to change in recent Natio turnover rate in the industry rivals had recently merged into two cquired by Simpson Industries. Following the acquisition, while costs kepe going up. In addition, Simpson Industries enced and well-respected National managers bad that were better able to meet customer left the company for jobs with competitors, needs, which was one factor that led to National and turnons being among production workers had increased a National's sales and profits had continued to decline, found. Most disturbing to Simpson were the In the tight labor market, replacements were not ca were concerned about low productivity ' survey he had commissioned by an outside consult at National. Although they had been happy to have pits. Workers viewed their supervisors with Carpenter stay on through the transition, within a year and a touch of fear. They expressed t they had gently pressured him into early retirement, Some managers were obsessed with profits an od the top managers believed Carpenter tolerated performance and low productivity in order friendly atmosphere. "In today's world, you jost can't do that," ooe had said. "We've got to bring in someone can implement change and turn this The survey indicated that morale at Nat onal was poor cared nothing about workers' needs a d duo to maintain a also noted that the collegial, friendly atmosphere made National a great place to work had becn was brought on board, with a mandate to Lawrence bad a growies reputation as a young, manager who could get things done fast. He Simpson was pleased that Laence ha National's profits and p quilly bepan making changs at National. Finst, be cut cortest chat many of the employees at that the low morale and high turno damage the company in the long ocial being "crybabies"? Were they so pent the c and c

Explanation / Answer

Tom Lawrence was obviously a task-oriented leader who focused on achieving the production and sales targets at the cost of people management. From the very first day, he set a culture to focus on completing the jobs, and did not care for who is doing it. He emphasized structures, production schedules, achievement plans, etc., and denounced those who are not for it.

By prioritizing goals, reviewing the performance, firing the underperformers, and completing the planned projects, the new CEO has upset the organizational culture that existed in the company. As a consequence to the measures taken by Lawrence, the employee’s commitment to the organization reduced, employee morale diminished, employees began to feel hopeless, high labor turnover set in and the cost of replacing the talented workforce increased.

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.