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Gillette Metal Fabrication Case Study Essay

Main Problem: The company faced major losses due to strategic,  structural, incentive system of the company and the communication gap among the staff and the management of the Gillette Metal Fabrication .

Issues:

  • Work force is not working to full capacity .They were cheating the work hours and are often clocked by their friends.By being unproductive they are creating operational losses.
  • The piece rate calculation system is not fair. In this method the worker earned minimum wage of $26 though he did production less than $26.
  • No interaction between the management and the workers because the management is not aware about what is happening in the floor space.
  • Goldbricking is done by the workers to avoid the work.Gravy and stinker jobs so the workers are not learning anything new.There are no bonus for any new invention.
  • No proper training for the new employees and no proper challenges to the experienced staff.
  • Weak management who has no idea how to cut operational losses and make employees productive

Solutions:

  • Change the compensation system hourly compensation should be implemented when the employee is productive.
  • Floor shop management should be stricter for the employees who cheat the work hours.
  • Interaction between management and staff should be increased so that this interaction helps them to achieve the organizational goals.
  • New employees should be put under mentorship program so that he would learn the work culture and be productive.
  • Innovation should be encouraged by compensation and acknowledgement this makes the employees to come with new ideas to improve the operation.

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