Case 15 - Power or Empowerment at Gm

Case 15 - Power or Empowerment at GM?

1. Parma's environment was one of great uncertainty due to GM's announcement and consequent actions involving plant closings as well as a decrease in employment levels at Parma. Although the location made over $700 million in sales, there were quality and customer satisfaction challenges to overcome. The success of the site was further complicated by pressures to improve costs, quality and productivity and additional pressure on management from the union to bring stamping work in-house that had previously been outsourced. Although an agreement with Parma's top management and UAW's Local 1005 had been made in the past that encouraged empowerment, problem solving, group dynamics and effective communication skills, the new chairman of the Shop committee submitted 600 demands at the start of the next local contract negotiation due to uncertainty that existed with the announcements of plant closings.

2. Bob fashioned a management team based on trust and openness. He wanted his managers to be committed to eliminating hostilities that lingered between the stamping and components operations within the plant as well as between hourly and salary employees. He was also looking for people who would support his informal and highly participative management style and who would work to increase the level of involvement among Parma's hourly employees. Bob was successful in keeping weekly floor board meetings so that union officials and superintendents discussed plant floor issues and by doing so, engaged them as active and productive in decision making. He also kept biweekly meetings with his staff and the Shop Committee chairman, the president of Local 1005, the Shop Committee members to continue and keep a high level of team work, communication, decision making and as a vehicle of power for this group to exercise change at Parma.

3. The most critical issues still facing Parma is to improve its quality, cost and customer service in order to remain viable in the eyes of GM leadership. They should also continue the activities of maintaining and improving upon the team environment so they can tap into the creativity and resourcefulness of the Parma employees to meet these important goals.

4. If the management of Parma continues the team approach and even improves it so that all employees are aware of the business necessity to make improvements