20-11-2012, 05:37 PM
OD CASE STUDY
A classic example of how OD can change an organization for the better is the initiative undertaken by General Motors Corp. at its Tarrytown, New York, auto assembly plant in the 1970s. By the late 1960s, Tarrytown had earned a reputation as one the least productive plants in the company. Labor relations and quality were at an all-time low, and absenteeism was rampant, when GM finally decided to take action.
Realizing the seriousness of the situation, plant managers tried something new he sought direct input from laborers about all aspects of the plant operations. Then they began to implement the ideas with success, sparking interest in a more comprehensive OD effort. Thus, in the early 1970s, GM initiated a quality-of-work-life (QWL) program, an OD program that integrates several types of interventions. The goal of QWLs is to improve organizational efficiency through employee well-being and participative decision-making.
In 1973, the union leaders signed a "letter of agreement" with management in which both groups agreed to commit themselves to exploring specific OD initiatives that could improve the plant. The plant hired an outside consultant to oversee the change process. The initial research stage included a series of problem-solving training sessions, during which 34 workers from two shifts would meet for eight hours on Saturdays. Those meetings succeeded in helping plant managers to improve productivity. Therefore, in 1977 management increased the scope of the OD program by launching a plantwide effort that included 3,800 managers and laborers.
Although the OD program eventually cost GM more than $1.5 million, it paid off in the long run through greater productivity, higher quality, and improved labor relations. For example, the number of pending grievances plummeted from 2,000 in 1972 to only 32 by 1978. Absenteeism dropped as well, from more than seven percent to less than three percent. In fact, by the late 1970s the Tarrytown plant was recognized as one of the most productive and best run in the entire GM organization.
Case study on Downsizing:
Ford, the third largest US based automobile company (after GM and Toyota) planned to retrench its manpower in US in 2006. This announcement came after couple of months of GM’s manpower rationalization. Where GM mainly concentrated on cutting the blue collar jobs, Ford planned to cut 14,000 white collar jobs in North America as it tried to turn around its flagging business. It had also planned to close 16 factories by 2007, instead of shutting 12 by 2012 as previously announced. Ford expected these measures would help it to reduce annual costs by about $5bn (£2.65bn) by the end of 2007. Earlier in 2006 Ford announced it would offer redundancy and early retirement packages to all of its 75,000 unionized blue-collar workers in the US. This case deals with the details of employee separation plan of Ford Motors vis-à-vis GM. It also unfolds how this initiative can be strategically beneficial in Ford’s turnaround plan and also enlightens HR aspects of this Early Separation Plan
Case study on Reengineering:
A case= study at Karolinska Hospital in Sweden by
Jacob (1995), and Hout and Stalk (1993) reveals that rising costs and a weakened economy in 1990s were forcing the government to reassess and reduce health care expenditures. Karolinska followed Boston Consulting Group’s (BCG) Time-Based Management methods to reengineer the way work was done. BCG reorganized work at the hospital around patient flow by creating a new position of "nurse coordinator" in most departments. By redesigning operating procedures and staffing patterns, Karolinska was able to cut the time required for preoperative testing from months to days, close 2 of 15 operating rooms and still increase the number of operations per day by 30 percent.
Case study on competitive strategy
Pizza Hut entered India in 1996 and introduced pizzas to the Indian customers. But it was not a smooth sail for the international giant. Its large dine-ins, high prices and positioning of pizza as meal put-off customers. Meanwhile Dominos Pizza that entered India in the same year was able to gain ground by positioning Pizza as a snack and supporting it with its efficient home delivery system. Even homegrown pizza chains like Pizza Corner and Smoking Joe ate into Pizza Hut's market share.