Jersey Diaries

1) Introduction and Background:

Jersey Dairies Ltd. have called upon us, PurCo to provide insight and advice involving a current issue within their organization. Over the past two years, Jersey Dairies has begun the implementation of Total Quality Management (TQM) to maintain or increase the company's market share. Jersey Dairy hired consultants to educate management and employees about the TQM process and vice president Tina Stavros created a new position within the organization called vice-president of quality strengthening the company's focus, hiring James Alder into this position. The implementation hasn't been as successful as planned due to issues discussed further in depth below. Furthermore Jersey's purchasing manager has been replaced, vice president Tina Stavros and vice president of quality James Alder are no longer with the company, and continuous falling profits have left Jersey Dairies wondering if ending several TQM initiatives and introducing better marketing strategies and new technologies to improve its competitive position are a possible solution to their problems.

2) Organizational Behaviour Issues and Analysis:

 Unskilled Workforce - p36

The employees at Jersey Dairies lack both the natural aptitudes and learned capabilities required to successfully complete the tasks involved in the implementation of TQM. When looking at "Ability" in the MARS Model of Individual Behaviour and Results, Jersey Dairies' employees possess below average competencies that prevent superior performance in TQM. Jersey Dairies has assumed that the TQM training provided was sufficient for employees to fully understand the organization's intentions of such a drastic change in policy. The employees' deprived competencies have caused them to exhibit a lack of motivation in successfully implementing TQM; thus, the reason they're reluctant to get involved in the TQM process.

 Employee & Supervisor Lack of Motivation pg. 147

Jersey Dairies' employees may have been motivated when TQM was first introduced; however, the decision of implementing TQM was not discussed with employees. If any motivation was present in adopting TQM it evaporated slowly but surely due to the largely unskilled workforce having difficulty learning the training material, resulting in another round of training one year later. Senior management's decision of implementing TQM to strengthen company goals was not involved with the supervisors and employees. Goal setting is usually more effective when employees participate with setting goals because these decisions directly affect them. Thus, participation ensures that employees buy into the goals and have the competencies and resources necessary to accomplish them.

 Threat of Losing Jobs pg. 203

Warning employees that they must support the TQM program to save their jobs was an ineffective way to encouraging employee involvement in continuous improvement (CI) teams. This may have caused employee energy levels and coping effectiveness to decrease; moreover, creating psychological consequences (job dissatisfaction, depression, exhaustion, moodiness, burnout) and behavioural consequences (lower job performance, more accidents, faulty decisions, higher absenteeism, and workplace aggression).

 Suppliers Displeased With TQM Demands

The implementation of TQM has created objectives and goals incompatible with Jersey Diaries' suppliers. The company's opposing goals have caused Jersey Dairies to experience conflict with their suppliers likely because the lack of opportunity, ability, and motivation to communicate effectively. When the new purchasing manager informed suppliers that they should begin a TQM program immediately, they heightened their perception of the conflict by stating they might decide to end their contracts with Jersey Dairies rather than to agree to Jersey's demands. This ineffective communicate has caused less motivation by Jersey Dairies and their suppliers to communicate in the future.

 Expenses Offset Continuous Improvement (CI) Teams p.263

Although some CI teams did find cost savings, these were mostly offset by higher expenses. Jersey Dairies has nearly tripled training budget and had significantly higher paid-time-off costs as the employees have taken these courses. The Jersey Dairies' employees might oppose the formed CI teams because the teams demand new skills and are expected to perform more work. Many employees may feel uncomfortable as they investigate their new roles, and they may be apprehensive towards the essential skills to become accustomed to the new work obligations. In spite of these challenges directed at the employees, CI teams offer considerable potential for Jersey Dairies; however, they must be implemented under the proper environment.

 Increasing Employee Turnover pg.

Employee turnover at Jersey Dairies has become considerably higher, mainly due to dissatisfaction with the TQM program. Tina Stavros (just before leaving Jersey Dairies), received word that several employees had contacted the Commercial Food Workers Union about organizing Jersey Dairies non-union production work force. As mentioned earlier, the primary and most crucial reason for Jersey Dairies' increasing employee turnover is job dissatisfaction. Job satisfaction is the key driver to company success. When the Jersey Diaries' workforce is despondent the probability of success with the implementation of TQM is extremely low.

The exit-voice-loyalty-neglect (EVLN) model can define Jersey Dairies' problems with employee job satisfaction. Jersey Dairies president; Tina Stavros and vice-president of quality; James Alder are classic examples of the "exit" portion of the EVLN model because Stavros left the organization for other employment and Alder may have left for the same reason. Employee turnover is a well-established outcome of job dissatisfaction, particularly for Stavros with a better job opportunity elsewhere. With respect to the "voice" portion of the EVLN model, several employees have contacted the Commercial Food Workers Union (as mentioned above) about organizing non-union production work force. This is the employees attempt to voice their concerns regarding the unsuccessful implementation of TQM. The "loyalty" portion of the EVLN model suggests that many Jersey Dairies' employees are tolerantly waiting, "suffering in silence" for the TQM issues to be