Management

Executive Summary

The Vancouver depot, a parts distribution warehouse for Acme Motor Company, experiences poor inbound receiving and stocking performance when compared to their outbound performance and to other distribution centers in the network. This research attempts to uncover the motivational issues present at the Vancouver facility.

We established that the primary causes for the disparity of performance can be attributed to too little extrinsic motivation. The primary cause, or root cause of the poor inbound performance is determined to be from the unwillingness of management to apply adequate pressure on the hourly workforce to perform at a higher level. In addition to the root cause, several secondary causes were shown to have an effect on low inbound performance. The perception of inequity in various forms, low supervisor expectation, management's lack of clear direction, overtime pay becomes an incentive for poor performance, and poor communication of objectives all result from the lack of adequate pressure from management.

To solve the root cause of the problem, we have determined that the best solution would be for top management at the distribution center to apply adequate pressure on the supervisors by holding them accountable through coaching, counseling, and discipline if necessary. We also suggest that management at the location administer quarterly interim performance reviews to ensure that the supervisors and superintendent do not lose focus on performance improvement.

Introduction

The Acme Customer Service Division is a division of Acme Motor Company which includes 22 parts distribution centers strategically positioned throughout the United States. Due to the placement of each distribution center, almost all parts ordered by 4PM are guaranteed to be delivered the next day. Each distribution center has a union represented hourly workforce and a salaried management team to run its operations.

18 of the 22 distribution centers are known as...