H026/13 H027/13 H028/13 H043/13 H029/13 H030/13

PRIYAMBADA PRIYADARSHINI PRIYANKA JAIN PRIYANKA SAMADDAR SWATILEKHA CHOWDHURY RONAK JOHARI RUSSELL JEREMY WARJRI

Continental Can Company of Canada, Ltd. (CCC) is a routine mass-production organization. By end of 1963, it had put in place a sophisticated control system for use in its plants which stressed on competition within the industry and as well as others in the industry It started experiencing conflict between the manufacturing and sales departments.

Manufacturing managers were rewarded for reducing costs and increasing efficiency but there was no incentive responding to the sales department needs Sales were declining and quality hampered

Question 2: What kind of organizational design choices has continental can company made about design challenges discussed in chapter 2?

Design Challenge

Reporting relationship should be clear. Clearly defined authority and responsibility.

CCC has its organizational chart in place which categorically defines hierarchy.

Balancing Differentiation and Integration Differentiation: Organization allocates task to the people and establishes task and authority relationship. It brings core competencies which will bring competitive advantage Integration: Process of coordination of various tasks, functions and division so that they work together

Whitelaw: Production Control Manager Andrew: Assistant plant manager Production control acts as a buffer between sales and operating people. Whilelaw and Andrew headed biweekly production control meeting, each lasting about one hour. Fox, the plant manager was frequent observer. Meeting was also attended by 2 general foreman. Under Plant Manager there are various departments like Plant Engineer, Production Control, Assistant Plant manager and each person is accountable only for his department

Balancing Centralization and Decentralization Centralization: Authority to make decision is retained by managers at top of hierarchy. Better coordination & Focus but Managers get involved in transactional activity and thus loose long term outlook. Decentralize: Authority to make decisions is delegated to managers at all level of hierarchy. Promotes flexibility, risk taking and innovation. Balance is struck when long term strategic planning is done by top mgmt.. and short term flexibility and innovation stems from lower mgmt.
The foreman is given responsibility and encouraged to act as though he were operating a business of his own. He is responsible for all results generated in his department. Staff runs the plant. Authority to implement lies in various department heads. Thus staff members need to be prepare to substantiate their decision. Thus gives greater sense of participation in and responsibility for plant income.

Balancing Standardization and Mutual Adjustment Standarization: Conformity to the rules and norms, that are considered proper for a given situation. Too much of it may stifle innovation, creativity and lead to inflexibility. Formalization: Use of written rules and Procedure Socialization: Unwritten rules of conduct are learned over a period of time. Mutual Adjustment: People use judgement rather than standard rules to address to a problem. This new and better way of achieving organizational goals is discovered.
Foreman: What I like about the department is that I am in charge. I can do anything I like as long as I meet the budget. I do all the planning and I am responsible for the results. I am perfectly free in the use of my time. On the other way Hunter, the plant accounted says we are the auditors who see that every other department obeys rules and procedures. It is our responsibility to know all that is in the instruction manual.

Question 2: Given these design choices, how would you describe Continental Can Companys approach to coordinating and motivating employees?

Often Managers with two job titles are given the same responsibility Communication among different plant managers without the intervention of division office Production control department facilitates communication between operations and sales Informal and Scheduled meetings and regular visits Manufacturing Efficiency Rating Chart Importance to communication Restructuring bonus plan to enhance plant efficiency

Delegating authority Increasing responsibility and accountability Practicing the culture of entrepreneurship Monitoring of activities through visits and meetings Enhancing supervisor subordinate relationship

Flexibility given to employees as long as budget is met Output standardization for all jobs Jobs not adhered strictly to job description Standardization of budget for accuracy Giving importance to customers reactions

No strike till date: wages according to industry standard. Employee satisfaction. Output standards. Balancing differentiation and integration Balancing between centralization and decentralization Balancing standardization and mutual adjustment

PERSONNEL Sales force Perceptions Separate Meetings

BUDGET Cost Structure Pay for Performance Scheduling

COLLATERAL Faulty Products Scheduling Owning The Company Culture

SALES

v/s

PRODUCTION

v/s

ACCOUNTING

What changes should be made to the way the St. Laurent plant is operating to solve its problems ?

Restructuring : Incorporate sales view point and bring sales in regular meetings agenda Assign a sales manager who reports to Fox and to the district sales manager to increase accountability in sales dimension Sales, production control, quality control should function in a coordinated manner together for improving efficiency Balance of power should be maintained.

Budget Change : Maintain Cost Control at various levels Addition of sales related objectives Increase customer responsiveness Change orientation of production managers and bring out operational efficiency