Mega Manufacturing is a manufacturer of sports shoes for men and women. They are investigating each department in order to cut back on spending in order to eliminate wastes of resources. One potential waste is coming from the cutting department. The waste of material is costing the company monitory resources that could further benefit the company if allocated elsewhere. Several solutions have been discovered with the cutting process but if the problem were to be solve d there is both a salary saving and the elimination of waste, in this particular department. However the solution lies with the employees of this department and the solution will cost some of them their jobs. The variables effecting the disclosure of this information vary from one's need for monitory income, to the esteem of the position. Management is facing several possible decisions that include employee employment assurance to cost savings and company bottom line figures. Their decisions are founded on management decisions, employee motivations and resistance to innovations and the notion of getting these resistant employees to adopt the innovations.
First, the management decisions regarding the cutting process and the problems that are associated with them. The notion that the skilled workers of the cutting department are aware of a solution to the problem with the breaking dies indicates that there is a solution to the problem. On the standpoint of the company, investigation into the proper use and successful completion of the cut using the die needs to be resolved. The die eliminates wastage and will speed up productivity of the cutting process. It will also make the individual machine operator more efficient which will conclude with the elimination of several positions may allocated more resources previously spent on employee salaries. This cost savings will free up allocations previously spent on overhead and allocated to other departments that may increase spending in order to increase sales, or add more to the stockholders bottom line. As a machine operator aware of this notion that relinquishing this information could cost him/her their job, there needs to be some cause for hesitation. The workers are paid on an hourly base so the increase of efficiency will also allow management the ability to cut hours, which will also hurt the workers. If faced with this dilemma I would have to first find out if the solution the breaking dies were legit.