Iggy Case

Nate Blevins

DEMBA 701

Iggy Case Study

Problem Statement :

Igor and Ludmilla Ivanovic, owners of Iggy’s Bread of the World, have suffered a major collapse of the core culture of the organization following a fast and massive expansion. If the core values and culture that brought Iggy’s initial success is not restored, the fast and sweeping changes from the expansion could result in reduced worker efficiency, total loss of worker moral, and damaged reputation from diminished product quality.

Analysis:

Social Model of Management

The deterioration of the company’s culture and core values may have happened because of the fast paced growth and change in management structure took the company from a social model management style to more of a pure economic model. When the company was founded, Igor and Ludmilla communicated the importance of the companies mission, not only to their customers but also to their employees. Ludmilla instituted many programs and events to make sure that everyone had the opportunity to interact with each other and were treated like valuable parts of the organizations success. This could be seen with the “clean and happy hands” policy instituted by Ludmilla. It started just as a reminder for all employees to wash their hands more frequently, but she expanded it to encourage all of the employees to practice a more holistic approach to their jobs. This was another example of getting the workers to feel comfortable interacting with their owners and managers, if there was a problem at home they were comfortable talking them out before going to work. Ludmilla felt that the energy flowed from their hands and into the bread and this became a part of the culture. Ludmilla also started offering English classes once a week to foreign employees who wanted to learn the language. This helped with the social interaction in the workplace that helped make the workers moral so high. This along with birthday parties and birthday cakes,...