HR assignment paper: Case study of Oconomo plant

Case 2 – Answers to Question 1:

There are two chooses of the evident for change at the Oconomo plant: close the Oconomo plant or reduce costs of employee’s salary.

From the cases external changes for the change:

Firstly, economic changes faced with the Lamprey. As the company has a long history during which the economy situation has changed a lot which drives the company to adapt to the economy change. For example, the Oconomo plant needs 16 per hour average wage, but the Lamprey can save fifteen million dollar if the $1.60 per hour wage given to the Mexican works is also applied to the company. Secondly, technology innovation is necessary otherwise the competitors would nearly overtake Lamprey even in term of product quality.

External changes against the change:

Closing the Oconomo will not only make the 520 people lose job and can’t find proper jobs in the town, but also the Lamprey will damage reputation among employees’ families, because the plant in Oconomo had long history since 1921 people would not hope the company to do so in their expectations.

Internal changes for the change:

Firstly, the Lamprey will have new organizational strategy and help it reduce cost. For example, that’s a savings of nearly $15 million a year for Lamprey. Then, Jim wants to change employee attitude at the Oconomo plant. He doesn’t want to be responsible for the plant’s dismantling; he would give the workers wage as long as there’s a chance its costs can be lowered. Next, the Lamprey will change in composition of workforce; every worker can be cross training at the Oconomo.

Internal changes against the change:

The union is against the change that they think no lower the wage and cross raining. The union has a great impact on the operation of the company as most of the employees are unionized which means they are under the direction of the union, so the union has great impact on the company if it does not accept the change.

Case 2 – Answers to Question 2:

I think the primary type of change needed to changing the people and culture. Changing people involves changing the attitudes, expectations, perceptions, and behaviors ( p278). As mentioned in this case, the union is very unwilling to accept the salary cut even though the salary level of the employees in the company is relatively high compared to the average level in the industry. The reason why the union and the employees would not be willing to accept the paid reduction could be concluded to the category of “expectation” because lowering salary will bring great dissatisfactions as salary is considered to be hygiene factors (Herzberg, Mausner & Snyderman 1993). Another factor change that is needed is the organizational culture. The organizational culture has been described as the values, principles, traditions that are shared or adopted among the organizations (p62). The culture of the company in this case needs to be changed to adapt to the new situation in which the company need to reduce the cost.

I think Wisconsin plant can be saved by changing people alone. Personnel changes, including changes in staff and management changes. Their salaries for a company, is a cost. For example, first of all I do is appropriate to reduce the company’s employees and managers. The employee to do two work who have this ability to competent. This is the simplest; it is also most effectively reduce the cost of the program. Then hire some new employees to replace vacant positions, new employees referred to here is not that cheap labor, and I want is the ability of employees, thus reducing the company unnecessary losses. This will fundamentally solve the problems the company.

Case 2 – Answers to Question 3:


There are many uncertain factors to change. Change the results may be good may be bad. So, speaking for the leadership of a company is worth considering. For example, when the factory with the Mexican workers, there will be two kinds of cases, reduced wages, the relative cost of the company also reduced, meaning that is the company’s revenue also increased. But there is a situation that these workers although the cheap, but they cannot perform these work, this will give the company a lot of unnecessary damage, such as inadequate due to technical errors caused by the production.

Concern about personal loss

Changes in the company generally will affect the company’s personnel changes (Unknown 2010). The leader may be deployed to other departments or dismissal. Here involves the question of their personal gains. For example, a leader of his monthly salary is 20,000 dollars, but because of personnel changes, he was deployed to other sectors, while wages changing from 20,000 to 10,000. So I believe most leaders are not able to accept such personnel changes.

If I am Jim Malesckowski,I have two tactics use to try to convince union members to change in order to save the Wisconsin plant.

First, I will find some well-known companies making the personnel changes they have made greater gains. Apple has repeatedly conducted such as personnel changes, the results are for the company to achieve greater gains. The fact is that the best way. Company leaders were most concerned about is the company’s earnings and the future. As long as I can give them that change can bring greater benefits to the company, they will accept my proposal.

Then, I combined my proposal to make a perfect report. For example I will be changes in personnel. First thing to do is to redeploy the staff of the company, so that capable people at the same time more than competent work, thus reducing the company to hire new employees for expenses, and will raise the wages of these people, this will inspire them more Great incentive to complete the work, for a company, so there will be a better income


Herzberg, F., Mausner, B., & Snyderman B. B., 1993, Motivation to work: with a new introduction by Frederick Herzberg, Seventh printing, New York

P.Robbins, S, Bergman, R, Stagg, I, Coulter, M 2000, Management, Prentice Hall, New York

Unknown 2008,What’s Stifling Creativity At Coolburst 2008, online, retrieved 24 April 2010, from http//’s-Stifling-Creativity-Coolburst/172093

Unknown 2010, Example Essay, online, retrieved 24 April 2010, from http//

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