Organiational

Organizational Innovation

Case 17 – Southern Discomfort

Questions

This case deals with a dilemma of Jim who is assigned the task of preparing a report analyzing the financial benefits of moving production from a U.S. plant to Mexico. He is experiencing discomfort because of the number of persons who will lose jobs. At the same time the union’s unwillingness to cooperate in wage concessions or work rule changes seems to provide the company with no other choice. 1. Should the company go ahead with the move to Mexico or try one more time to work things out in the Oconomo facility? Hint: The answer to this question depends on attitudes towards unions, loss of American jobs, and financial responsibility. 2. Why do you think the union resists changes so strongly? Hint: There are several reasons the union may resist so strongly. Any discussion should consider the barriers to change. For example the union may fail to perceive any benefits to change, want to avoid the uncertainty of any change, and fear that change of work rules will result in loss of power, status, wages, and eventually jobs.

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3. How can the company overcome this resistance? Hint: This discussion should center on developing plans to overcome resistance to change. The union obviously does not see the need for the change and must be convinced that a real need exists. The company needs to inform the union of the consequences of the proposed changes and of not changing. They also need to better involve the union in coming up with recommended changes. If the union understands the financial realities, maybe they can recommend changes and then will be committed to them. The use of change teams composed of management and union members will be helpful.

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