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 Goble takes over many team members have five years' exper-ience for the first time in SEP history. Finally, a special category of "skilled" tradespeople are receiving a higher scale of pay than other nonexempt workers, because their skills were in short supply in the area, but this is causing some resentment.
The first human resource goal to improve the situation at the plant should be to clarify the operating philosophy, and to identify areas where revisions in strategy or structure mi...