Homework Clinic
Social Science Clinic => Business => Management => Topic started by: student77 on Mar 21, 2020
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River Woods Plant Manager
Heritage Appliance Company recently announced plans to construct the River Woods manufacturing plant, replacing the company's original, flagship facility adjacent to the company headquarters in Edgemont. In announcing the new plant, the company stated that to the extent possible it would be staffed by Edgemont plant personnel and that the excess personnel would be transferred to other Heritage plants in neighboring states. Heritage management views the River Woods facility as the plant of the future, featuring new methods of production and lower processing costs and manpower requirements.
In a recent press release, the Heritage CEO noted that they were replacing one of the least automated plants in the industry with a plant using new forms of production not previously seen in appliance manufacturing. Heritage Appliance is also using the River Woods plant to pilot a new decentralized management structure. In the past, the firm's marketing activities were directed from the home office by a vice president. Manufacturing operations and certain other departments were under the control of the company's senior vice president. In this centralized, functional arrangement, none of the company's four plants had a general manager. Instead, each department in a plant reported on a line basis to its functional counterpart at the home office (e.g., director of production, director of engineering). In contrast, the new River Woods plant manager will be responsible for the management of all functions and personnel except marketing and sales.
There is general consensus among the top management team that the long-term viability of the firm depends on the success of this initiative. However, some have expressed concerns about the difficulty of the task facing the River Woods general manager. They point to the shift from functional lines of communication and accountability to a plant-level focus, as well as the challenges of upgrading the skills of the Edgemont plant personnel, working out the bugs in new applications of advanced manufacturing processes to appliance design and production, and dealing with the inevitable complaints from employees in a small company town who are not satisfied with their new assignments and who might serve as the catalyst for unionizing the only nonunion U.S. appliance manufacturing firm.
If you were offered the new River Woods plant manager position, based on what you've learned about the sources of position power, what actions would you take to insure that as the company's first general manager you had the necessary clout to accomplish your assigned duties?
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This case focuses on all of the major power and influence concepts in the chapter. To select a suitable general manager for the plant, students should realize that they should select a candidate who views power in a positive way (e.g., to gain cooperation, to accomplish tasks, to build relationships). Students should understand that they need a candidate with exceptional expertise, someone likable and attractive, someone with high performance and effort, someone who is trustworthy, and someone whose behavior is aligned with the values of the organization.
To build power, the new manager would likely be more successful using reciprocity and reason. Students should recognize how these strategies will help a new manager at the River Woods plant to build power and influence. Also, students should consider position power and realize that the new plant manager must work to make his or her position central to the functions of the whole organization. In addition, he/she must work to gain freedom to use his or her own judgment to make decisions while remaining visible to leadership in improving plant performance. The more the plant manager's work becomes vital to the organization, the more power and influence the plant manager will have the opportunity to use.
Students need to consider the new form of decentralized management and how that will sway the performance of the plant. Further, the plant is a "start-up" facility that will require training, problem solving, and evaluation of work. There may be those who try to use power and influence in ways that will lead to negative results for the plant. The new manager will need to be proficient at using neutralization strategies to keep the momentum of power and influence headed in a positive direction.