Roundtech Case Summary

Recommendation 1: change managerial strategy RoundTech needs to shift their managerial strategy from a classical organization to a human relations organization. The tasks performed by their staff have a high level of interdependency, especially the production staff, as a result they need to have a social or team based work environment. The change in managerial strategy will allow the organization achieve its overall strategy of providing high quality Canadian made products at an affordable price. The reason that the human relations approach will work for RoundTech is because it will appeal to the employees monetary and social needs and thus will motivate them to work and achieve the goals set out by the executive, provided that they

Additionally, they should have a severance package ready for anyone who chooses not to stay with the company.

Recommendation 3: invest in training to ensure quality
RoundTech should invest in training to ensure that the remaining employees know how to do their jobs effectively. Additionally, as they are going from a piece rate system to a wage with team incentives RoundTech should invest in team building training so that everyone can get to know each other and make it less competitive and more about a team. Shifting the work environment will allow more experienced members of production to support the less experienced because it's better for the team and will help them achieve their group goals.

Recommendation 4: implement a wage system
The key RoundTech is to change their base pay strategy from a piece rate system to an hourly wage. This will be effective because there is a high interdependency in the tasks, therefore, it is not appropriate to look at only individual performance. Piece rate systems create behaviours where people will push product through even if that means it's lacking in quality because they want to increase their pay. In order to combat the quality issues, pay cannot be solely linked to output but rather should be connected to motivating behaviours that the organization wants; low waste, high quality, productivity and customer satisfaction. A wage system will increase the quality because employees won't be pushing through subpar products. As a result of the increased quality customer satisfaction will increase because there will be fewer problems with the orders