The document discusses the organizational transformation of Precision Parts Limited over time. Initially, the company adopted stakeholder theory and had fair policies that addressed workers' concerns. However, after 20 years of focusing on staying competitive, the company shifted its vision to prioritize shareholders over workers. This caused conflicts as workers wanted higher pay while the company aimed to reduce costs. Regular negotiations were unable to resolve the growing divide. The document also examines factors like the economy, technology, and power balances that shape employee relationships and work rules. Precision Parts Limited failed to properly manage these relationships, upsetting workers with new rules and threatening job security. As a result, productivity declined as workers did the minimum required. Finally, the document outlines three approaches to handling organizational
The document discusses the organizational transformation of Precision Parts Limited over time. Initially, the company adopted stakeholder theory and had fair policies that addressed workers' concerns. However, after 20 years of focusing on staying competitive, the company shifted its vision to prioritize shareholders over workers. This caused conflicts as workers wanted higher pay while the company aimed to reduce costs. Regular negotiations were unable to resolve the growing divide. The document also examines factors like the economy, technology, and power balances that shape employee relationships and work rules. Precision Parts Limited failed to properly manage these relationships, upsetting workers with new rules and threatening job security. As a result, productivity declined as workers did the minimum required. Finally, the document outlines three approaches to handling organizational
The document discusses the organizational transformation of Precision Parts Limited over time. Initially, the company adopted stakeholder theory and had fair policies that addressed workers' concerns. However, after 20 years of focusing on staying competitive, the company shifted its vision to prioritize shareholders over workers. This caused conflicts as workers wanted higher pay while the company aimed to reduce costs. Regular negotiations were unable to resolve the growing divide. The document also examines factors like the economy, technology, and power balances that shape employee relationships and work rules. Precision Parts Limited failed to properly manage these relationships, upsetting workers with new rules and threatening job security. As a result, productivity declined as workers did the minimum required. Finally, the document outlines three approaches to handling organizational
The document discusses the organizational transformation of Precision Parts Limited over time. Initially, the company adopted stakeholder theory and had fair policies that addressed workers' concerns. However, after 20 years of focusing on staying competitive, the company shifted its vision to prioritize shareholders over workers. This caused conflicts as workers wanted higher pay while the company aimed to reduce costs. Regular negotiations were unable to resolve the growing divide. The document also examines factors like the economy, technology, and power balances that shape employee relationships and work rules. Precision Parts Limited failed to properly manage these relationships, upsetting workers with new rules and threatening job security. As a result, productivity declined as workers did the minimum required. Finally, the document outlines three approaches to handling organizational
Section: B Managers : We are Katti with you Following are my three key learnings from the case study discussion in class. Organisational transformation The company was able to achieve an employee-employer equilibrium state in its functioning during the initial years. The policy adopted during the time was the stakeholder theory of organizational management detailed by Edward Freeman, which states that all constituents of a business, i.e., Government, society, and the company itself, are equally important, and the decisions should look for the best for all these stakeholders. Their vision was evident in Precision Parts Limited's HR policies, wherein they instituted the worker's union fairly early, met with union leaders twice a year to address concerns, and monthly with the HR manager. The shift started after 20 years when the company turned to a low-cost and high-quality model. Inherently, they wanted to stay competitive in the face of global exposure brought on by the end of license raj. Thus economic factors were also responsible for the shift in the company's vision, which started focusing on the shareholders. There was a conflict of interest arising since workers want to raise their pay scale and at the same time the company wants to reduce the bottom line resulting in higher profits for the shareholders. The conflict was supposed to be resolved through regular negotiations between the top management and the union. Still, the optics of the deals offered by the company were not appealing for the workers, ultimately leading to a massive divide within the organization. Employee-Relationship Management Between the three players, company, unions, and state, the factors in play are: ● Economy ● Technology ● Power Balance ● Ideology The interaction of these forces and players results in the formation of work rules. This process is called employee relationship management. The activity involves maintaining the relationship to foster a productive and fair environment. PPL was not able to maintain the relationship and introduced work changes that were not pleasing for the workers. The workers were as they speculated from the departure of several people from the company and the changing rules that their job security might be hanging by a thread. The situation ended up being escalated beyond the point of return and eventually the mutual trust was lost. The productivity also plummeted as workers vouched to only do the bare minimum. Tackling conflicts There are primarily three ways to combat conflicts in the organisation ● Unitary ● Pluralism ● Radical Without delving deep into the concepts, these three forms of conflict combating approach can be seen in various firms. Unitary method is concerned with suppressing any voices that raise concern and essentially follows the rule to not let the conflict arise. Pluralism follows the idea that conflicts are important for growth and all opinions are welcomed. Finally, Radical deals with the proposition that the power is vested within the workers. Rules of the organisation are created by the workers and follow the marxist ideology.