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HR Issues and Problems

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In 1979, Danney Goble, the newly appointed plant manager of the Sedalia Engine Plant (SEP) faced a number of serious problems concerning human resources. The most significant problem was the large-scale turnover among directors, managers and advisors. With so many new people in these positions, there would undoubtedly be gaps between the existing organizational structure and the new leadership style. The widespread managerial change could also intensify internal conflicts and morale problems.

A secondary problem was the lack of effectiveness of some advisors, and inconsistencies in the ways advisors dealt with work teams. The advisors have key roles in guiding the work teams and in encouraging team building and individual development. They are a major factor in implementing the SEP operational philosophy.

Two related issues which pose significant problems concern the compensation system for nonexempt employees and economic uncertanties which could threaten to cause layoffs. There are a number of inequities and deficiencies in the compensation system. Some team members believe they are underpaid, because jobs include "vertical" tasks such as machine maintenance, monitoring inventor-ies, and participating in budgeting. This means that they perform tasks that other factory workers do not usually perform. The pay system includes a five-year series of increases based on development of new skills. These increases end after five years, and as G

. . .
ues. Layoffs would undermine the level of employee commitment developed over the years, and rumors about possible layoffs could do as much damage. It appears that a union organizing effort may be beginning in Sedalia, and compensation and benefits are likely to be the focus of any actual campaign. If dissatisfaction is allowed to linger, the union may become a more attractive alternative. ACTION PLANS In order to clarify the organizational philosophy and set the stage for possible revisions, Gobel should conduct a series of Plant Operating Team meetings dedicated to the topic of organiza-tional development. The initial meeting should be held immediate-ly to review the plant's history and philosophy for the benefit of the newer POT members. It is important that all POT members have a clear idea of where SEP came from, where it is, and what it wants to accomplish. After this initial stage, future meetings should be held for the purpose of discussing and gaps between the organizational structure and the needs and style of the current management team. Recommendations for organizational adjustments are to be encouraged and discussed. The POT should set a time-table of six months for identifying any initial structural problem
. . .

Some common words found in the essay are:
Creating BOA, Plant SEP, Clair Goble, POT POT, Representatives Currently, COMPENSATION Reduce, BOA BOA, St Clair's, Operating Team, Identify Identify, ________________________ ____________________, ____________________ _____________, ________________________ ____________________ _____________, improve effectiveness, action plans, experienced advisors, ____________________ _____________ ________________________, _____________ ________________________, advisors advisors, dead job, goal improve, organizational structure, sedalia engine plant, effectiveness team advisors, improve effectiveness team,
Approximate Word count = 1374
Approximate Pages = 5 (250 words per page)

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