The Simpson Case

This is a typical case of change resistance, the inability of the upper management to keep the
employees satisfied, and the complexity of meeting the organization's long-term goals. Frank
Simpson, the President and stockholder of a video electronics company find himself in a fix
when the company is in its 10th year of production. Although the company had started off very
small, in a few years it had reached unprecedented levels. However, as it grew larger. profits
started to decline. The demand was much higher than the production and supply levels.
Simpson hired triple the amount of workers but to no avail.

It got to a point that the company was only breaking even and it was imperative to do
something drastic before it was run over by a competitor. The company was based in a small
town with a total of 15,000 people. The majority of the labor that was hired at the company
was unskilled and paid by the hour. They had no formal training, labor unions or an overall
vision of where the company was headed. At this point in time, Simpson decided to bring in an
outsider for one of the highest level managerial positions. He would have the responsibility of
reporting to him.

Although Simpson realized that the employees were already resisting the change, he mostly
ignored their fears. Soon, John Rider a person with the right qualification was hired. Rider hired
Paul Green to develop the industrial engineering function. As soon as he came in, he started
studying the current processes for two months. He and Rider realized that there was potential
to increase productivity by 25 per cent and reduce costs by 35 per cent. This could only be done
by making some major changes. One of his first changes was to study the current processes and
document them on paper.
Not only would this convert this tacit knowledge into explicit knowledge or manuals but it
would also help them evaluate how and where to make the changes in the process. Little did
they know that when the two managers left for some business, there was a mutiny behind.
Older workers who thought that their roles might be eliminated or were at risk barged into
Simpson's office and asked him to not let Green conduct the study. Question 1: If you were
Simpson, what would do now? What would do later, if anything? What behavioral models and
ideas are involved in your thinking?

Simply stated. Simpson has made a mistake in forcing the employees to a change they don't
truly understand or want. Telling them that the company will be out of business makes the
management look selfish and unconcerned about the employees. It is true that if the company
goes out of business, there will be no jobs for the men. However, right now they feel so
threatened that they cannot help but be unreasonable and resistant to change. He should listen
to all their key concerns and ask one of their representatives to come and meet with Green,
Rider and himself.
Both should debate and discuss their points of view and come to a conclusion. Since it seems
that there is no way out of the dilemma and change is badly needed, hiring a change
management consultant would help in this transition. This would also mean that a corporate
vision or a plan needs to be relayed to the employees so that everyone is on the same page.
Another aspect which needs some changing might be the wages. It seems that employees are
wasting time so that they are paid by the hour. Instead, an incentive-based system might work
better.

Motivational techniques are badly needed to help gain the employees’ trust again. One way
that a change management consultant can help is by training them and transferring skills that
would not only help the company but would also motivate the employees. Question No 2:
Should Simpson have permitted the supervisors to see him? Since they now report directly to
Rider? Since Simpson is also a stakeholder at the company, he has a right to know how upset
the employees are at this change. Since Rider and Green are both younger and newer
employees they might not have taken their resistance so seriously.

Simpson did the right thing by letting them see him. However, the actual change or the
aftereffect of this should be carried out by Rider. If Rider isn't the one taking action then his
authority in front of the employees would lessen. Question No 3: What kinds of changes are
taking place in this case? What are the effects of these changes? What ideas about change will
help in the transition? In essence, this is a people-centered change. The whole process of hiring
an outsider to come up with ways to make the employee’s processes better makes the
employees shaky and their status quo is affected.

They feel their jobs might be at risk. They feel vulnerable and violated by the study. It is as if
they have been doing the processes wrong and these new employees are going to correct it.
What they don't realize is the fact that improvements and overall betterment is on the minds of
both Rider and Green. Also, changing the processes to make them leaner would lead to
downsizing. This change could take place smoothly if only proper communication, motivation,
leadership and interaction is garnered between both groups. The change in processes would
mean that the old knowledge will no longer be as important.

Once everything is documented, key people who are now running the processes based on their
knowledge and experience will not be that important anymore. Therefore, a techno structural
and human process change is also taking place simultaneously. This can be fixed by training and
development and by addressing the fears of the employees. Question 4: Do the three stages in
change (unfreezing, moving, and refreezing) apply in this case? Discuss? They do apply in this
scenario because the whole organization is currently in the unfreezing mode. Old patterns,
behaviors are being evaluated.

Information is being collected about the current state. Very soon, new policies, procedures and
behaviors will be designed to improve the situation. Once they are applied, the organization will
move into the moving stage. Once the change has been properly implemented, then it will
refreeze these newly learnt behaviors: Until, a time will come that the organization will need to
move back into the unfreezing stage and change those behaviors as well. This process should go
on repeatedly if an organization wants to call itself a true learning organization.

THE OUTLINE: Based on the VIDEO ELECTRONIC COMPANY.

1. Point of view: Mr. Frank Simpson
2. Problem
Wrong: Should hire more labor and employees?
Right: Hiring the person with the right qualification.

3. Objectives
a.
4. Areas of Consideration
a. NEXT LEADERSHIP'S ABILITY TO IMPLEMENT THE COMPANY'S EFFECTIVE
PROGRAM
b. Lack of clear communication in meetings.
c.
5. Alternative Course of action
a. Hiring the right person to the right position
b. Conduct workshop seminar and training
c. Having a semi-annually financial statement
d. Hiring a consultant management
6. Analysis of the Alternative Courses of Action

a. Alternative #1:

Advantages Disadvantages
1. Having a trained and skilled 1. Risks a labor strike
worker 2. Requires hiring a
2. More produced services and replacement
product 3. Possibility of shortage
3. Supply increasing
4. Avoid mismanagement

a. Alternative #2: Conduct workshop seminar and training

Advantages Disadvantages
1. effective employee 1. cost
2. advanced knowledge 2. Requires a plenty of time
3. enhanced companys
strategies
4. motivational techniques
5. to gain the employee trust again

Alternative #3: Having a semi-annually financial statement

Advantages Disadvantages
1. provide a snapshot of a 1. The relevance of results
corporation's financial health becomes less precise leading
2. giving insight into its to inaccurate decision
performance,  making. 
3. analyzing a company's 2. financial statement only shows
financial strength and how a company is doing at one
provide a quick picture of a single time.
company's financial health
and underlying value.
 b. Alternative #4

Advantages Disadvantages
1. Help the company to be organized 1. Cost of hiring
2. Motivated the employee 2. hey may not have the
3. orker resources of a larger firm, 
5. More produced services and 3.  they may not be able to
product provide the same level of
6. Supply increasing support.
7. Avoid mismanagement

7. Rating the Alternatives

Rating Scale:
9-10 Alternative is very effective in achieving the objective.
7-8 Alternative is effective in achieving the objective.
5-6 Alternatives could either be effective or ineffective.
3-4 Alternatives is ineffective in achieving the objective.
1-2 Alternatives is very ineffective in achieving the objective.

ALTERNATIVE CASE RATING JUSTIFICATION

COURSES OF OBJECTIVES
ACTION
a. 1. Objective 1:
Hiring
the right
person Objective 2: To
to the maintain good
right relationship with
position the union.
Objective 3
To establish
harmonious
relationship
among
 employees.
2. Rehire Keller Objective 1: To
without beat the rush
consultation with order.
anyone. Objective 2: To
maintain good
relationship with
the union.
Objective 3
To establish
harmonious
relationship
among
employees.
3.Influence Objective 1: To
Becker to beat the rush
Rehire Keller order.
Objective 2: To
maintain good
relationship with
the union.
Objective 3
To establish
harmonious
relationship
among
employees.

Determining the best alternative

C R I T E R I A
ALTERNATIVES OBJECTIVE OBJECTIVE OBJECTIVE
1 2 3
 TOTAL
SCORE

1. Hiring the right

person to the right
position

2.Conduct workshop
seminar and training

3.Having a semi-
annually financial
statement

4.Hiring a consultant
management

8. Conclusion and Recommendation

9. Implementation of the Course of Action