Alcan Case Study

 

INTRODUCTION

            This essay tackles about the Alcan Case Study.  The Lynemouth Smelter due to the imperative need to change the organization underlies from the conventional work organization that existed and as a response to decline of the world price of aluminum combined with the impact of the increasing rise of competitors who have much lower cost of production than that of Lynemouth.  In the context of this essay it discusses as to how the organization was able to manage the change in its organization, specifically in the production quality, whether or not change has been effectively managed or that the management has overlooked loopholes in the changes they are trying to implement.  Evidences are derived from the research at the plant in 1995 through interviews that have been conducted and a questionnaire survey.  A follow-up was made in 1997 to examine the conditions of the plant with the inclusion of interviewing again the informants.  Further, in the main part of this essay, it seeks to examine the changes that management wanted to implement in the aims of raising the production quality and the employees’ response to the said change.   Moreover, the conclusion and recommendations will be based from the context of the main part and the evaluation as to how the organization managed the change occurring in the organization.

            In 1940, Alcan’s Canadian smelters came into existence and it is still currently in production.  It was in 1942 that Lynemouth began its production when its basic operational design is traditional and conventional.  Lynemouth has a carbon plant where the mixing and baking of carbons are being molded to form large blocks after which it will be taken into the pot rooms and a casting plant is where the produced aluminum will be cast into ingots.  With the high production cost, since the plant uses coal as its medium of energy, Lynemouth proves to have a hard time minimizing its cost at the same time increasing the production of its workers.

MAIN PART

The problems of Lynemouth surfaced primarily in the work organization wherein it has been perceived as resistant to change.  The need to change the work organization came about when the sense of dissatisfaction from employees grew to the extent that it affects the production quality.  To keep up with the competition amidst Lynemouth being a high-cost producer, Lynemouth’s management opted to increase the efficiency of their production to counter-act and balance the high-cost of production such that Lynemouth can have a sense of worth in the money they have been spending in production.  The management lays down three options for change in the organization.  First, is to act on the role of trade unions being influential, or if possible remove their bargaining rights so that management can readily make decisions for the plant without prior consultation from the trade unions.  Second is to establish and promote cooperation with trade unions such that it is the management way to hasten the implementation of the desired changes without disruptions and further interference from the trade union that comprises majority of its members.  Contrary to the minimization of disruptions that might confound with the implementation process of the changes, the second option is subject to delay in the implementation of the change because it may take some time to convince the trade unions to agree with management decisions.  However, given this initiative, it fosters healthy working conditions among the employees and the management since the decision-making process has been clearly talked about and a status quo will be achieved.  The initiative of the management of Lynemouth is a wise move presumably because the management knew that the trade unions has influenced on its employees, by doing such move it permits the management intentions of gradually impatiently implement change in the organization drastically provided that they have had influenced also the trade union leaders to support their cause.  Third was to win employee’s consent by the reformation of the communication system.  The third option is more of gaining a much bigger consensus from the employees rather than be limited to leaders of the trade unions in which the management are not sure if they really get their full support.  It is a sort of a follow-up from the second option so that Lynemouth’s management can implement the necessary changes the soonest possible time.  The tactics of management is like an underground tactics that commensurate how desperate they are in trying to implement change impromptu.

In 1991, the concept of team work was introduced in Lynemouth was in lieu with the second the third highlighted proposed options by the management to foster cooperation of plant trade unions.  As the work organization being perceived to be resistant to change, initial skepticism and issues of trust and high level of doubts surmounted the introduction of team work. By 1995, the senior management team accepted the team work principles, perhaps they want to give it a try after being convinced of the positive results it can bring to the plant.  The team working concept encompasses team briefing, job rotation and degree of multi-tasking.  Instead of concentrating over the whole team of production, the management divided the production team into small groups so that it will ensure that team work will work effectively among the team members.  The team leader was in charge in the team briefing and scheduling of work.  In addition, the management employs instructors for the purposes of evaluating the training needs and is task to do the carrying out of scheduling and carrying our training of other team members.  Small groups in the organization are very pervasive because it undoubtedly fosters team work and minimizes conflicts occurring.  Not only it fosters team work, it also achieves goal purpose.  By goal purpose it pertains to the intrinsic good feeling a team member experiences when a goal is being reached by the team.  The abolishment of direct supervision gives the way for team leaders to be in control of its member although, however, team members were not given authority to discipline its members.  Supervisors role has somewhat been reduced and is in accordance with the job rotation the management wants to implement.  In 1972, multi-tasking was introduced to the craft workers that make it a distinguished feature of Lynemouth plant from the other manufacturing plants in the United Kingdom.  On the negative side, it may be a possible source of the use of power of supervisors to its employees such that it undermines the influence of union.  A consequence of an increase of work effort may just be in compliance with the management and as a result it raises questions as to how effective the team work is in the plant.

            The effectiveness of team work was reflected from the results of the research in 1995 wherein it produces an improve degree of satisfaction that is indicated in the employees greater sense of autonomy and the participation of shop-floor workers.  Though it may seem that team work concept was at work, a setback from the purported results is still noticeable.  The employees accepted being in a team but seemingly it appears that team members or the employees in general did not develop a sense of self-discipline and that they did not attached meaning being in a team.  Further, the adoption of multi-tasking by craft workers was evident but they still showed reliance on the technical staff to do it for them.  The participation of shop-floor workers may have had participated, however, they lack serious engagement in coming to terms in dealing with technology.  Perhaps, it is the lack of knowledge was the reason behind this matter.

            Despite of the efforts of Lynemouth to keep up in terms of production quality, the plant remained fragile to closure.  The team being implemented by management even though it have gained acceptance, the timing was not perfect for such change to occur.  The acceptance of team came about when employees fear of a possible company take over since at that time the employees knew the instability of Lynemouth and had caused fear also in the employees tenure or job status in the plant.   Aside from that new dilemma being faced by management, the adverse effects of team work came into play.  Technical staffs felt that their jobs are being taken away from them and have been threatened that territory has being intruded due to the multi-tasking efforts of the management.  White-collar job workers, on the other hand, have some issues regarding their pay.  The change of their job specification have caused their wages not to be as high as prior to the changes in Lynemouth but in line to decrease in wages, they felt like the production workers are being favorably given importance.  It has steered envy from the white-collar workers to the production workers maybe because they felt like they have been stripped off of their positions as being given more importance before.  White-collar employees has been claiming that their grievances are not being heard and has been dismayed by the undesirable turn-out to a point that they felt they are being devalued and thus, being demoralized in the process.

CONCLUSION AND RECOMMENDATIONS:

            

            Lynemouth, as an aluminum business industry, is a promising business to venture since it can be a global product and a profitable industry.  Of the problems that surround the plant, the immediate solution the management has drawn was too drastic in a sense that they fail to look into the other problem aspect before jumping into a final decision.  In the urge of finding immediate solutions to the increasing rise of competition, they solely focus on the production quality aspect.  Therefore, team work has been introduced to foster production quality.

            Managing changes occurring in the Lynemouth has never been an easy thing to do nor can readily be implemented with such short time given.  Specifically for Lynemouth who implemented pertinent changes drastically without studying the adverse impacts that may bring to the plant.  The introduction of team work was not at all a wrong move but its implementation which is entirely focus on the production aspect seems to be not appropriate.  The need to balance everything, from the production employees to the white-collar employees should not be overlooked to prevent conflict to arise between the employees.  Team work produces positive results if only it will be implemented to everyone and not be concentrated on a particular division.  Furthermore, the need to foster synergy among all the employees of Lynemouth will provide fruitful benefits and instills stability for the plant in the future.

            

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