Post on 18-Oct-2015
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Class,
Here's an example case from a fellow student this semester (different class, same case requirements). This was a different case, but the analysis is what's important.
This is an excellent example of the level of detail expected. Please note 4 things:
1 - There is an in-depth review of each article. This isn't just general information based on the title and abstract; the student demonstrated a good understanding of the article.
2 - There are multiple articles reviewed for each issue. Notice that there are 5 articles reviewed for the Ethics section alone (more in other sections). This demonstrates that the student didn't just take one author's perspective, but instead got a well-rounded understanding of the topic from multiple authors.
3 - The same level of detail is in the recommendations.
4 - The student's attention is clearly on the article reviews, not the case.
Before you go into a panic, please note that you don't need to review 5+ articles per issue. As I've mentioned before, if you provide 2-3 in-depth article reviews per issue (and the same in your recommendations), you should have a quality paper.
Thanks,
Dr. Alex Williams
Milkshakes)and)the)decision)that)could)lead)to)disaster)3))Milkshakes and the decision that could lead to disaster
George Stein was a college student who secured a summer job working for Eastern Dairy
and was suddenly faced with an ethical dilemma. Should he knowingly allow maggots to bypass
the filtration system and end up in the milkshake and ice cream mix? Stein and the night crew,
which functioned with no supervisor or manager, were responsible for producing a set number of
gallons of mix as well as completely cleaning the system prior to the end of their shift. Paul
Burnham, a member of the night crew, was the one who received the daily production orders and
was influential in the other members actions. While Burnham was aware of the reason that
maggots sometimes appeared in the mix, he wasnt concerned because he explained that all solid
matter was pulverized when run through the homogenizer. This leads one to believe that the
events of this particular shift had happened previously, and the result was that the maggots were
allowed to pass through because the crew removed the filters in order to complete their run by
the end of the shift. Stein was faced with the direction from Burnham to remove the filers.
In analyzing this case, one can look at many factors that could ultimately impact this
condoned behavior. The first major factor impacting the behavior is ethics. With no formal
leadership, the crew was primarily concerned with completing their work on time to avoid extra
work. The crew was also prone to horseplay during their shift and intentionally wasting
completed bags of mix during the process. Secondly, the culture of Eastern Dairy obviously was
not strong or not communicated pervasively enough to provide a framework for the crew to
make the decisions that they did. Lastly, job and organizational stress should be reviewed. Even
thought the atmosphere created by the night crew was fairly lackadaisical in many regards, there
was a particular tension of finishing the assigned work by the end of the shift
Milkshakes)and)the)decision)that)could)lead)to)disaster)4))Ethics
The impact of ethics on misconduct in the workplace has long been a question and
concern for organizations. It is important to have a more clear understanding of the definition of
an ethical decision. Crossman, Mazutis and Seijts (2013) define an ethical decision as any type
of decision that has the potential to benefit or harm others or one that has the possibility of
exercising the rights of some while denying those of others. These authors make the case that
ethical decision making should be viewed as a circular process with self reflection playing a
critical mediating role rather than the more traditional and linear models of decision making that
indicate that workers would approach each new ethical decision in isolation from previous
experiences (Crossman et al., 2013). Crossman et al. (2013) developed a model for ethical
decision making that specifically targeted understanding the role of character in decision making.
Their comprehensive model integrates values, virtues, character strength and ethical decision
making (Crossman et al., 2013). Many individuals are faced with cognitive limitation and turn to
routine decision making when faced with strategic decision making situations. These authors
argue that this decision making process can incorporate the virtue of character, and when aligned
with the virtues of the organization, can lead to improved decision making over time (Crossman
et al., 2013).
Is the area of ethics related to productivity? Stainer and Stainer (1995) state that there is
a very close relationship between productivity, quality, and ethics. They go on to state that the
relationship is even more apparent when the outcomes of the business process are considered
(Stainer & Stainer, 1995). Making ethical decisions, according to Stainer and Stainer (1995), is
seen as very easy when the facts that present themselves are very clear and the choices clearly
reflect right or wrong. The situation dramatically changes when it is surrounded by ambiguity,
Milkshakes)and)the)decision)that)could)lead)to)disaster)5))incomplete information, or multiple and conflicting points of view. When faced with one or
multiple of these scenarios, workers are forced to rely on the decision-making process itself, the
actual experience as well as their own intelligence and integrity (Stainer & Stainer, 1995).
Understanding that this provides a dilemma for employees, there are steps as detailed by Stainer
and Stainer (1995) that organizations can take to help create an ethical climate for decision
making: prepare and communicate a company expectation statement in the way of ethical
behavior, establishing clear and concise procedures to enable employees to participate in the
ethical culture and to be able to report violations, and lastly to establish a monitoring process.
Vardi (2001) looked at organizational misbehavior as it correlated to the ethical climate
of the organization. To fully understand this study, Vardi (2001) described organizational
misconduct as intentional acts that violate the formal core organizational rules (p. 325). It is
documented through the review provided by Vardi (2001) that the various forms of
organizational misconduct are pervasive and costly problems that organizations face. As a
result, there is a growing interest among organizational scientists as well as practitioners to
understand the patterns of and the motivational factors that affect such behavior as well as the
potential consequences for the organization and its members (Vardi, 2001). Through an
empirical study, Vardi (2001) determined that the organizational climate as well as the ethical
climate of the organization were determining facets of the organization. As an interesting note,
Vardi (2001) also determined that organizational misconduct was not associated with just rank
and file employees. In fact, managers as well as the aforementioned group were both subject to
enter into organizational misconduct (Vardi, 2001).
Ghosh (2008) reviewed ethical literature and determined that workplace decisions are
jointly impacted by organizational factors as well as individual factors. What Ghosh (2008)
Milkshakes)and)the)decision)that)could)lead)to)disaster)6))wanted to determine through a study was whether or not corporate values as espoused through
management would influence work-related decisions and if so, what corporate values would
allow worker personalities and ethical values to manifest themselves (Ghosh, 2008). The results
provided by Ghosh (2008) showed that the participants workplace decisions did indeed become
less ethical when the corporate values are reflective of a very profit-oriented approach to reward
and recognize employees as compared to when corporate values were structured to reward
integrity or in the situation when no corporate values are professed. This is critical to the case of
Eastern Dairy. From the little information presented, it is easy to come to the conclusion that
profits are prioritized over ethics. This is evidenced in the fact that the crew was more concerned
with getting the quota of mix completed on time rather than in producing a quality, safe product.
Additional findings by Ghosh (2008) revealed that when corporate values are driven by financial
profits, workers ethical standards are not a significant explanatory variable in relation to ethical
decision making in the workplace. In contrast to this, ethical standards are significant
determining factors of ethics within organizations when the corporate values reward integrity and
good business practices (Ghosh, 2008).
Hunt and Jennings (1997) looked into ethics and the relationship to performance.
Specifically, Hunt and Jennings (1997) determined through their review that there was a greater
ethical laxness among younger managers and professionals in business. This applies to Stein in
the case study. He is described as a college student. Although it was not determined whether or
not Stein actually followed through with the direction to remove the filters, this study would
indicate that he would be more prone to do so because of his age. To further substantiate this,
Hunt and Jennings (1997) found that younger respondents were significantly more permissive in
their views in relation to ethics in a wide variety of situations. Also, the research revealed that
Milkshakes)and)the)decision)that)could)lead)to)disaster)7))many young respondents were more concerned with furthering their own personal interests at
any costs with little or no regard for fundamental moral principles (Hunt & Jennings, 1997).
This line of reasoning was extended with the research to uphold that younger teams are more
inclined to make the most unethical decisions (Hunt & Jennings, 1997). While the ages of the
other members of the night crew are not specifically stated, it is a fairly easy deduction to
conclude that this team was skewed toward younger workers, and thus fell in line with the results
of this research.
Job/Organizational Stress
The second area of concern in this case is the topic of job/organizational stress. While it
is described that the crew entered into horseplay and joking around while on the job, there was
an overriding concern with the expectation of completing required units of mix and completely
cleaning the system within the specified shift time. Stress certainly is a factor that can impact
decisions and behavior in the workplace.
Connor and Worley (1991) discuss the fact that stress is pervasive in the modern
organization with costs associated to the North American economy in the billions of dollars each
and every year. Specifically, stress is defined as an event when an external stimulus places a
demand on a person; that persons response to that demand is called stress. Stress can be
negative or positive (Connor & Worley, 1991). While many equate stress with individuals,
Connor and Worley (1991) point out that stress can also manifest itself with an organization
resulting in the need for the management of stress. Before organizational stress can be managed,
it must be understood along with what sources create the stress. Some of the sources that are
important, according to Connor and Worley (1991), include change, group issues, environmental
Milkshakes)and)the)decision)that)could)lead)to)disaster)8))issues, career issues, and extra organizational issues. With respect to job stressors, Connor and
Worley (1991) point out that workers can experience stress when they lack sufficient information
about their duties and responsibilities. This leads to a sense of uncertainly about responsibility
and expectations and therefore leads to creating stress (Connor & Worley, 1991). This certainly
seems to be a feasible explanation in the case study. With the information provided, there was
little or no information provided to Stein regarding his job or the expectations from leadership.
With regard to organizational stressors, Connor and Worley (1991) explain that poor
communication, because of the reduction in clarity with which employees understand their jobs
and duties, can increase uncertainty and therefore cause an increase in the level of stress.
Although there was some communication from Burnham, he was considered to be a co-worker
and not a member of the leadership team. Also, from the facts presented, there was not a clear
directive given as to expectations. Clearly, as supported from this analysis, stress is most likely a
factor in this case.
According to Caudron (1998), jobs are the largest source of stress for the majority of
Americans. With the extent to which the economy is impacted, Caudron (1998) continues to
point out that there is little actively being done by employers. However, by being proactive and
addressing the issue, organizations could see a positive economic impact and return (Caudron,
1998). Caudron (1998) states in simple terms that as job pressure rises, productivity drops. It
isnt just about creating a work/life balance program since that certainly doesnt fully address the
work side of the equation (Caudron, 1998). In evaluating stressors, Caudron (1998) reported that
workplace stress is three times more likely to affect a persons emotional well-being over having
children, aging parents, commuting to and from work, spouses, and many other personal
demands. Certainly, stress can be conducive to productivity in moderate doses; however, when
Milkshakes)and)the)decision)that)could)lead)to)disaster)9))companies give employees too much for too long, it is proven that they do not perform at a peak
level (Caudron, 1998). This is relatable to Burnham in the case analysis. He was never put
officially in charge of the night crew; however, he had the responsibility to ensure that tasks
were completed and production orders met. All together, it is then clearly visible that job-related
problems affect the bottom line of the organization to a much greater extent that do personal
problems (Caudron, 1998). In a review, some of the work-related issues that were identified as
stressors included inadequate training, frequent schedule changes, poor new-hire screening, lack
of communication, misguided rewards systems, and a poor work environment (Caudron, 1998, p.
23).
In a study by Jehangir, Kareem, Khan, Jan and Soherwardi (2011), it was determined to
be conclusive that stress leads to a negative effect on job performance and job satisfaction.
Because of this, Jehangir et al. (2011) offered that companies must help employees with
appropriate types of assistance programs since stress in the workplace has reached epidemic
proportions. In terms of job-related stressors, Jehangir et al. (2011) found that removing as many
of them as possible had a positive correlation on performance and satisfaction. In the Eastern
Dairy case, this could have a dramatic impact. It is fairly apparent that there is little or
immaterial communication, no direct line of supervision and no instruction as to how to best
handle a situation that obviously is recurring in terms of the clogged filters. In addition to
affecting satisfaction and performance, Jahangir et al. (2011) found that stress was also
detrimentally correlated to self confidence, self esteem, a general dissatisfaction of life and low
motivation. This study confirms the early research in proving that stress is an area affecting both
employee and employer and should be addressed and managed.
Milkshakes)and)the)decision)that)could)lead)to)disaster)10)) Stress is different for different groups and also for men and women according to Park
(2008). Nonetheless, for both sexes, stress can lead to negative coping behaviors such as
drinking alcohol, smoking or even drug abuse and also to declined activities at work (Park,
2008). In terms of reported stress at work, women reported greater levels of work stress than
men. This held true as well for self-perceived work stress with one-third of the women
indicating that they felt more work-related stress even after controlling for other socio-
demographic factors (Park, 2008). Men reported higher levels of required physical effort on the
job; however the significance of this finding disappeared when controlling the socio-
demographic and employment variables (Park, 2008). With regard to job insecurity and the level
of job dissatisfaction, the results were almost equal for men and women (Park, 2008). Park
(2008) further analyzed shift workers. These workers were found to have high-strain jobs with
high psychological demands coupled with low levels of control. As a result, shift workers
reported their jobs to be demanding, less satisfying and thus stressful (Park, 2008). (Shift
workers were defined as anything other than a regular daytime schedule: night, evening, rotating
or split). The same did not hold true for part-time employees versus full-time. While the part-
time workers reported very similarly to shift workers in terms of lack of control, they did find
their jobs to be more passive while the full-time employees felt an increased level of stress in the
workplace (Park, 2008). The night crew at Eastern Dairy, then, falls into the category of
increased stress in the workplace.
Halkos and Bousinakis (2010) refer to some actions steps that organizations can take to
minimize stress in the workplace. Since clarity and communication are proven to be important, a
clear job description is needed to prevent ambiguity in roles. By changing work areas or rotating
duties, even horizontally, stress could be lessened (Halkos & Bousinakis, 2010). Secondly the
Milkshakes)and)the)decision)that)could)lead)to)disaster)11))job environment should be one of acceptance and understanding. Halkos and Bousinakis (2010)
detail that this action makes it clear to the worker that she is cared for and that she is an
important part of the organization. Recognition and reward for work achievement will help to
bolster employee morale (Halkos & Bousinakis, 2010). Cross training workers in terms of their
work is vital along with other matters concerning to function of overall activities of the
organization (Halkos & Bousinakis, 2010). This particular strategy could be important to
Eastern Dairy. From the case study, there didnt seem to be any understanding of how the
actions of the night crew could detrimentally affect the entire organization in terms of lost
customers and negative publicity. Halkos and Bousinakis (2010) point out that employees must
also feel secure with regard to collecting a paycheck, not being fired or not being demoted.
Lastly, Halkos and Bousinakis (2010) explain that creation of a motivational framework which
will lead to better and more substantive operations of the team is fundamental. This alone can
create a sense of team spirit and increase team function (Halkos & Bousinakis, 2010).
In a novel look at leadership and the contemporary role it has with regard to stress
management in the organization, Darling and Heller (2011) found that leaders play an
increasingly important role in the stress management of the organization. Darling and Heller
(2011) find that when a leader adopts a certain thought or feeling, that thought or feeling is
communicated to others with whom he is associated both within the organization and to the
external stakeholders of the organization. In relation to stress management, Darling and Heller
(2011) point out that because the leaders opinion has a ripple effect on the internal and external
organization, he must understand that his actions and feelings do indeed impact the organization.
Therefore, the leader must not rely solely on what has worked in the past, but must look to the
future and develop a creative process that focuses on communicating, motivating, mentoring,
Milkshakes)and)the)decision)that)could)lead)to)disaster)12))investing, producing and innovation to a level never before experienced to involve employees
and others deemed necessary for success (Darling & Heller, 2011). As an interesting
perspective, Darling and Heller (2011) state that a concerned leader must keep in mind that
nothing in ones personal or professional life comes along with a label indicating stressful event
or issue, but rather there is a decision made to label it as such. As an example, Darling and
Heller (2011) explain that when a persons thoughts and feelings are generally positive, a
potentially stressful occurrence could be labeled as a challenge or opportunity rather than a
stressful incident. They conclude that a persons personal situation is what he creates of it, and
no one else can create that for him or stand in judgment of him without his permission (Darling
& Heller, 2011). Darling and Heller point out that more negative-thinking people will typically
have more stressful events in their lives in comparison to positive-thinking people.
Understanding this, Darling and Heller (2011) emphasize that leaders can find themselves with
opportunities or stressors, and their feelings, reactions and communications of them will trickle
down both internally and externally to impact organizational stress.
Corporate culture
Corporate culture is a large topic that has multiple implications. In this particular case,
the culture of Eastern Dairy could have impacted the performance and actions of the night shift
workers because these actions would be considered to be within the norms of the company. To
fully understand how culture could be a factor in this case scenario, it is first important to
understand organizational culture. Davis and Landa (2001) state that organizational culture is
derived from the anthropological concept of culture that attempts to explain why people behave
as they do. Culture, at the same time, is positive and negative in nature and can be a significant
factor in an organizations success while also being a severely limiting factor in the face of
Milkshakes)and)the)decision)that)could)lead)to)disaster)13))corporate change (Davis & Landa, 2001). Further description of culture includes the complex
gathering of values, beliefs and behaviors that become a part of the very fabric of a particular
organization (Davis & Landa, 2001). Because of the importance of corporate culture, there is an
obvious linkage to productivity. Davis and Landa (2001) go on to explain that culture is highly
resistant to change. Culture can become an issue, according to Davis and Landa (2001), when
the behaviors, beliefs and values of the company become inconsistent with market realities or
with individual worker beliefs and values. In order to positively impact the company, the
organizations espoused values must be in alignment with organizational behavior; leader
behavior must be in direct correlation to organizational values (Davis & Landa, 2001). Davis and
Landa (2001) clearly state that the evidence is clear that culture is more important than
compensation with regard to such outcomes as satisfaction, trust and productivity.
When a company embraces the knowledge of how to develop its culture effectively, it
will enjoy significant advantages in both productivity and also the quality of work-life for
employees (Schulz, 2001). Schulz (2001) explains that culture is important to an organization
because it provides continuity, structure, common meaning and order. In the case analysis, there
seemed to be no continuity or order to activities that reflected the best interest of the company.
Because culture is many times referred to as soft or touchy feely, it is in actuality very
difficult and one of the hardest parts of the management of any enterprise (Schulz, 2001).
Culture generally defines patterns of acceptable behavior within the company, and when
dysfunctional, these patterns are viewed as bad habits and somehow seem to flourish (Schulz,
2001). On the contrary, Schulz (2001) states when the culture is positive and effective, these
patterns make the company function better. It is extremely important that a company must make
a concerted effort to develop and mold its culture. While all companies have a culture, according
Milkshakes)and)the)decision)that)could)lead)to)disaster)14))to Schulz (2001), it is more common for a company to end up with culture by default rather than
design. This can be a very detrimental practice because like personality is to an individual,
culture is to an organization in defining who we are (Schulz, 2001). While having a strong and
defined corporate culture by itself will not create a successful organization, it is an important part
of the overall puzzle (Schulz, 2001). If Eastern Dairy has a corporate culture, it wasnt
transferred to the night crew since they felt it acceptable to waste product or produce
contaminated product that would go directly to customers.
Bakar, Salleh, and Ling (2008) look at culture as a potential social control system thus
indicating that if one wants to be accepted, one has to try to live up to others expectations (p.
340). Further, Bakar et al. (2008) investigated four types of corporate culture: competitive
culture, entrepreneurial culture, bureaucratic culture, and consensual culture. Competitive
culture is defined by an emphasis on creating a competitive advantage and market superiority;
entrepreneurial culture focuses on innovation and risk taking; bureaucratic culture can be
characterized by internal regulations and formal structures; and consensual culture emphasizes
loyalty, tradition and internal focus (Bakar et al., 2008). Since culture is defined as patterns of
shared values and beliefs that aid individuals understanding organizational functioning and thus
norms for behaviors, it is important for companies to understand that there is a significant and
positive correlation with job performance only with entrepreneurial, bureaucratic and
competitive cultures. Since it is shown that culture has an impact on employee behaviors, Bakar
et al. (2008) stress that it is important for managers to shape and develop culture that is
conducive to the employees and organizational settings. In this way, managers can better
determine the types of people or employees required to match the culture and appropriate for the
assigned tasks (Bakar et al., 2008).
Milkshakes)and)the)decision)that)could)lead)to)disaster)15)) To set out to change culture is not necessarily an easy task (Carmody, 1994). For
companies that want to maximize productivity and succeed in todays economy; however,
positive change in culture is a necessity (Carmody, 1994). When a company determines that
there is needed change in processes, the culture can sought to be changed either before,
simultaneously or after those production changes have occurred (Carmody, 1994). When
tackling change and incorporating change into culture, Carmody (1994) discusses that
incremental improvement and tackling the most important issue second leads to the most
successful strategy. The reason behind this is that success creates momentum, and the company
should first tackle an issue that is important but not at the top of the critical list (Carmody, 1994).
Once the first issue shows signs of success, the second issue will become easier to implement
and will garner more widespread support and enthusiasm at all levels (Carmody, 1994).
Carmody (1994) explains that fear of the unknown is one of the biggest detriments to employee
motivation, and to combat this fact, it is important to determine a plan, communicate the
benefits, and incrementally implement the plan.
Important to the case analysis, Vance, Zell, and Groves (2008), explain that corporate
culture can be extremely influential in shaping and guiding the utilization of particular patterns
of thought that are used in problem solving and decision making which can ultimately lead to
successful innovation (p. 232). While these thoughts and processes are important in decision
making, they also can impact and form the basis for organizational culture (Vance et al., 2008).
This concept is critical for the success of the organization because Vance et al. (2008) detail that
the culture that is formed reinforces acceptable behaviors within the organization and also
discourages those that are deemed unacceptable.
Milkshakes)and)the)decision)that)could)lead)to)disaster)16)) The evidence is clear that culture impacts performance and productivity either positively
or negatively and can be a measure of economic performance of the organization; however, the
precise components of an organizations culture cannot always be directly compared to that of
another since some cultures evolve to promote a competitive advantage in the marketplace
(Uddin, Luva, & Hossian, 2013). Uddin et al. (2013) explore that organizational cultures could
be a means of keeping employees in line and directing them toward organizational objectives. In
an effort for organizations to achieve a competitive advantage, there is the need to recruit highly
performing individuals, but this must be countered with a supportive organizational culture that
creates the atmosphere for individuals to reach their objectives (Uddin et al., 2013). Companies
can no longer stand by to have their culture determined for them because organizational culture
is too important of a component to achieve success in the marketplace. Uddin et al. (2013) found
that organizational culture is an open system approach which has interdependent and interactive
association with organizational performance (p. 72). It cannot be stressed enough that the
organizational culture, whether concertedly developed by the organization or allowed to develop
by chance, can either positively or negatively impact performance thus making a strong case for
the importance of purposeful cultural design and development (Uddin et al., 2013). In the case of
Eastern Dairy, the culture that has been allowed to develop has the potential to negatively impact
not only productivity, but also the bottom line.
Recommendations
Based on the review above and case study, there are specific recommendations that could
be initiated by Easter Dairy to improve the situation and to have a more positive outcome in
terms of quality and food-safe production. Because the potential negative impact on the
company is great, Eastern Dairy would be wise to focus attention on the matter; however, this
Milkshakes)and)the)decision)that)could)lead)to)disaster)17))would require someone from the night shift to inform someone in leadership or some other
official capacity of what was happening. Because of peer pressure, the likelihood of that
happening is slim, so a more holistic approach to solving issues such as the following should be
taken. The three recommendations, each being able to stand independently, are also interrelated.
The first is for Eastern Dairy to adopt a system of total quality management. Secondly, a well-
defined and thorough training program needs to be implemented that leads Eastern Dairy to
become a continuous learning organization. Lastly, to address the fact that there is not a
manager or leader assigned on the night shift, Eastern Dairy should shift to using self-directed
teams.
Total quality management (TQM)
Total quality management (TQM) is an encompassing effort to constantly improve the
quality of a product or service (Richards, 2012). This varies from older forms of quality control
where a specified quality department would monitor and check the quality of products and
instead focuses on the company always striving to meet set quality standards across the
organization (Richards, 2012). Although it can be more complex, Richards (2012) simply
explains goals that companies could hope to achieve by implementing TQM: have a never-
ending push to improve the product, require all personnel to become involved in the process, and
achieving and maintaining customer satisfaction. In order to achieve this, however, TQM must
become incorporated into the mission and vision of the organization (Richards, 2012). TQM
requires a total commitment from the entire organization starting with the top (Richards, 2012).
To remain on track requires the company to set a course toward quality and follow it which must
be backed up by renewed culture of continuous quality improvement (Richards, 2012). In
evaluating the case of Eastern Dairy, adopting a TQM plan would help to empower the
Milkshakes)and)the)decision)that)could)lead)to)disaster)18))employees to strive for quality rather than just finishing their assigned task. Employees would
take pride in identifying and being a part of the solution.
Khan (2003) sought to determine what impact the adoption of TQM would have on a
company. Effective implementation of a TQM plan could have tremendous impact and improve
the profitability of the firm, increase revenues and reduce costs (Khan, 2003). Khan (2003)
studied firms that had won quality awards as compared to companies that had not. The study
also examined financial data from the companies over a 10-year period (Khan, 2003). The
results of this investigation by Khan (2003) found that companies with successful TQM
programs did indeed perform better than those in the control group. What Khan (2003) is quick
to point out is that there must be a movement toward adopting a TQM culture in order to be most
effective. Just having the TQM systems and tools in isolation will not have a dramatic impact.
There must be a long-term commitment from top management in order to achieve significantly
better performance results (Khan, 2003). Ultimately, Khan (2003) points out that adopting TQM
is a paradigm shift from an organization being reactive to becoming proactive with the ultimate
goal of pleasing the customer.
One of the concerns discussed above was the organizational culture of Eastern Dairy that
would allow such behavior as described in the case. Kujala and Lillrank (2004) state that the
theoretical foundation of TQM is the formation of a quality culture. In practice, the
implementation of a successful quality management program requires a change in the
organizational culture to be compatible with quality culture (Kujala & Lilllrant, 2004, p. 43).
The original approach with TQM was to manage the production process in order to achieve and
maintain consistent levels of desired quality, but now the concept has been expanded to
encompass the entire organization (Kujala & Lillrant, 2004). The result has been that TQM has
Milkshakes)and)the)decision)that)could)lead)to)disaster)19))expanded to go beyond the mere technical management practices and now requires a
fundamental change in the way in which company workers at all levels work together to meet
customer needs (Kujala & Lillrant, 2004). With this in mind, external stakeholder as customers
and partners, are now considered an integral part of the organization (Kujala & Lillrant, 2004).
This would give way to Eastern Dairy taking a hard look at why maggots appear in the
ingredients in the first place. Is it something that is done by their suppliers? Is it how the
ingredients are stored? Questions as these should be asked to prevent the maggots from entering
the mix in the first place. If quality was successfully woven into the culture of Eastern Dairy
through implementation of TQM, even thinking about allowing maggots to enter a product that
would be delivered to customers wouldnt have happened. Organizational culture can inhibit or
allow for the success of an organization (Kujala & Lillrant, 2004).
All of this isnt to say that just because an organization decides to adopt a TQM
philosophy that it will be successful. Ahire, Waller, and Golhar (1996) reviewed both TQM
companies and non-TQM companies. They found that from the 500 firms surveyed, less than
one-third were accomplishing anything and almost two-thirds of the TQM programs had come to
a complete halt (Ahire et al., 1996). What are the reasons for this? Ahire et al. (1996) suggest
that these failures are attributable to the lack of top management commitment and endorsement,
unrealistic expectations about time-frame, and the cost associated with the implementation of
TQM. Ahire et al. (1996) found that many organizations adopt TQM and feel that it will be a
cure-all for the company without regarding the long-term practices of the organization thus
failing to achieve lasting improvement. The results of the study by Ahire et al. (1996) showed
that while implementing a formal TQM program usually leads to greater performance; it
certainly isnt true in every case. The program, by itself, may not guarantee better results (Ahire
Milkshakes)and)the)decision)that)could)lead)to)disaster)20))et al., 1996). This is a pitfall that Eastern Dairy must avoid - implementing TQM without the
proper support and long-lasting commitment to the program. Additionally, the analysis of Ahire
et al. (1996) showed that organizations implementing TQM with complete commitment and
investment will lead to better results; however, a half-hearted implementation of TQM shows no
better results than the status quo. The best results are achieved through a dedicated, long-term
formal TQM implementation (Ahire et al., 1996).
The employee is an integral part of TQM as evidenced through the work of Johnston and
Daniel (1992). A key management responsibility according to Johnston and Daniel (1992) is to
enhance employees abilities and their willingness to put those abilities to use in order to
maximize human resources, which is considered to be an organizations major source of
competitive advantage. In order to become engaged, employees must understand and appreciate
that their ideas are accepted and even implemented thus creating a meaningful relationship
between the organization and the employee (Johnston & Daniel, 1992). Something as simple as
a suggestion box where employees are confident that their ideas are noticed and acted upon can
bolster employee commitment and engagement (Johnston & Daniel, 1992). Had the night crew
felt that they had a voice and could be a part of the solution with the filters, they might be the
voice for solution rather than just getting by. By creating a sense of equality, organizations can
increase employee input and dedication (Johnston & Daniel, 1992). It is imperative for
employees to understand that from the customer perspective, there are no isolated processes
strung together to produce the product, but rather a seamless flow. The employees must
understand that it takes all of the players working together toward a common goal to be
ultimately successful (Johnston & Daniel, 1992).
Milkshakes)and)the)decision)that)could)lead)to)disaster)21)) The implementation of a TQM program must be well thought out and executed in order
to be successful (Salemme, 1992). The review has proven that in order to be successful, TQM
must be more than just applying a set of tools. It must be a commitment from management to
change the way they do business (Salemme, 1992). Based on the findings of companies that
have successfully implemented TQM, Salemme (1992) offers the following change efforts. The
first is to clearly identify and communicate the need for TQM. People change for two reasons:
inspiration or desperation. Employees must be able to visualize the positive changes that are
possible with the adoption of TQM (Salemme, 1992). Secondly, Salemme (1992) recommends
that the desired future state must be developed. This vision for the future must be compelling
and offset the discomfort often associated with change (Salemme, 1992). Lastly, Salemme
(1992) suggests that everyone must be on board with the TQM change because one or two
people cannot initiate positive change. To achieve maximum success, the organization as a
whole must be willing and ready to accept the change (Salemme, 1992).
Training
According to the facts presented, there was little if any formal training for Stein as he
joined the team of the night shift with Eastern Dairy. Training is an important tool for any
corporation. The recommendation for Eastern Dairy is to embrace training to the point that the
organization becomes a continuous learning company. Derouen and Kleiner (1994) discuss that
there are emerging trends that focus on making training practical, realistic, and pertinent to the
employee. A recent trend, according the Derouen and Kleiner (1994), is the move from training
that is job specific to that of continuous learning where employees are encouraged to learn not
only their own job and skills but those of the people around them. Two types of training are
discussed. The first is social training where employees are given a secondary job which changes
Milkshakes)and)the)decision)that)could)lead)to)disaster)22))out frequently and are considered to be minor in comparison to their primary responsibility
(Derouen & Kleiner, 1994). This ultimately provides the employee with a sense of teamwork
and pride in productivity (Derouen & Kleiner, 1994). The second type of training detailed by
Derouen and Kleiner (1994) is technical task training where employees are focused to learn the
job which they will perform. In order to be successful, Derouen and Kleiner (1994) suggest that
training must happen immediately and that employees must be involved while the support of top
management remains consistent.
The importance of training cannot be overstated. According to Nadeem (2010), only
satisfied, committed, and motivated employees are meeting the level of expectations and
expanding their skill horizon, through training, holds the key to success (p. 206). Nadeem
(2010) defines training specifically as a planned intervention that is designed to enhance the
determinants of individual job performance (p. 207). Successful and meaningful training is
something that motivates employees and also provides meaningful support to sustain them
throughout their careers (Nadeem, 2010). With proper training, Nadeem (2010) points out that
employees are improved and given the opportunity to perform their jobs more resourcefully and
thus increase the organizations productivity. Without proper training, employees feel
discouraged and left alone which leads to dissatisfaction and higher turnover (Nadeem, 2010).
By overcoming shortcomings through training, Nadeem (2010) points out that employees
become more motivated and satisfied. Through the review, Nadeem (2010) found that there is a
positive correlation between training and motivation, commitment, satisfaction and productivity.
Wagonhurst (2002) further states that although in tough economic times training programs are
often the first to go; companies should take heed and understand how effective training - tied to
the organizations strategic goals - positively impacts the outcomes. There are three necessary
Milkshakes)and)the)decision)that)could)lead)to)disaster)23))steps, according to Wagonhurst (2002), that an organization needs to take to increase the positive
outcome of training. The first is to conduct a needs assessment since training may not be the
answer in every situation (Wagonhurst, 2002). This is an important step because it defines the
issues and correlates whether or not training could play a role in solving the problem
(Wagonhurst, 2002). Secondly, Wagonhurst (2002) stresses the importance of determining the
proper training methodologies. There must be a decision made as to whether to use training,
which focuses on skill acquisition, or education, which focuses on acquisition of knowledge
(Wagonhurst, 2002). Lastly, Wagonhurst (2002) recommends an analysis of the transfer of
training, or whether or not the skills taught in training actually were put to use in the workplace.
This may be a determinant of whether training is actually the proper method of intervention
(Wagonhurst, 2002).
If a company is going to engage in a successful training program, then the company must
understand what is involved in making that happen. According to Morgan (1994), a successful
training program must go beyond the initial training received in orientation. A successful
program must have a designated training coordinator whose job is to serve as the coordinator of
the program (Morgan, 1994). Next, Morgan (1994) suggests that a regular time frame should be
set aside for the training. Each session should have a detailed lesson plan with written materials
available (Morgan, 1994). Morgan (1994) recommends looking within the organization in terms
of identifying facilitators so as to encourage employees to teach their strengths and also to bring
in employees from across the organization which fosters an increased sense of teamwork. When
designing the sessions, gather input from employees as to their needs (Morgan, 1994). Finally,
Morgan (1994) stresses the importance of evaluating the training once it is completed so that the
Milkshakes)and)the)decision)that)could)lead)to)disaster)24))positive and negative can be discussed and utilized to enhance further sessions. All in all, the
training program must add value for the employees so that they feel engaged (Morgan, 1994).
Ford has developed a successful training program that seeks to empower employees to
participate in the companys success (Denton, 1995). By empowering employees to become an
integral part of the company, Ford is able to encourage innovation through co-determination and
co-responsibility (Denton, 1995). As a good example of an honest commitment to training, Ford
understands that their plans for the future will either succeed or fail based on how well their
employees respond to those plans (Denton, 1995). Life-long learning has been adopted by Ford
to provide a variety of training and educational opportunities for employees which ultimately
will positively impact the organization (Denton, 1995). Denton (1995) discusses that Ford has
educational tracks which focus on core company values and practices, general business and
technical/strategic skills, professional and functional knowledge, community and societal
involvement, and individually motivated personal development. The point of these tracks,
according to Denton (1995), is to enhance employees professional growth as well as to improve
their personal lives. According to officials at Ford, their extensive training program has allowed
them to complete globally because the core emphasis was on changing their corporate culture
(Denton, 1995). Denton (1995) describes that Ford wanted to have a greater amount of
employee involvement and a more participative style of management. This training is seen by
Ford as one change in an overall systems approach that will ultimately impact and create other
beneficial changes such as employee involvement and teamwork (Denton, 1995). Fords
example is certainly one that Eastern Dairy could try to emulate to improve performance in its
operations.
Implement self-directed teams
Milkshakes)and)the)decision)that)could)lead)to)disaster)25)) The final recommendation for Eastern Dairy is to implement self-directed teams. By
doing so, the issue of no management or supervision for the night crew shifts to the team
managing themselves and becoming empowered to do so. While the review shows that this is
not a short-term fix, it is a more solidified solution with long-term impact. In order for self-
directed teams to have the ultimate impact, there must be a considerable amount of planning and
thought (Anonymous, 1993). The concept of self-directed teams can more easily be understood
by first knowing what a self-directed team is not. Self-directed teams are not groups of co-
workers from the same functional department or cross-functional groups that come together to
solve a particular problem then return to their regular jobs (Anonymous, 1993). Petty, Lim,
Yoon, and Fontan (2008) describe a self-directed team as a group of frontline employees who are
given the opportunity to make decisions regarding their day-to-day operations. Other definitions
shared by Petty et al. (2008) include a fully-trained group of employees who are responsible for
turning out a well-defined unit of work or a group of interdependent employees who share
responsibility for defined outcomes and have interdependent roles. When a company decides to
invest in making the transition to self-directed teams, they must be aware that it requires
changing the organizational structure as well as the information patterns, compensation system,
and the whole concept of career path (Anonymous, 1993). Self-directed team members require a
significant amount of training in team skills and also cross-training in different functions so that
they comprehend and appreciate how their actions impact the entire organization (Anonymous,
1993). While the specific structure of the team may vary from industry to industry, one thing
that will not vary is the alignment of the teams activities with the strategic business needs that
brought forth the need for the team in the first place (Anonymous, 1993).
Milkshakes)and)the)decision)that)could)lead)to)disaster)26)) Petty et al. (2008) conducted research to determine whether or not self-directed teams
versus traditional work teams varied in terms of work ethic. The evidence showed that indeed
there was a significant difference between the two groups with self-directed teams showing a
greater work ethic (Petty et al., 2008). An additional finding from this study showed that there
was a positive relationship between desirable worker characteristics such as responsible,
considerate, dependable, and cooperative when self-directed teams were used within the
organization (Petty et al., 2008). As an economic indicator, the organizations studied that used
self-directed teams were also known to be the lowest-cost producer of consumer goods (Petty et
al., 2008). While these benefits are attractive to the organization considering implementing self-
directed teams, Petty et al. (2008) cautions organizations from jumping into self-directed teams
too quickly or without proper planning and resources.
Self-directed work teams are a unique type of team that can have tremendous positive
impact on an organization, but they should be distinguished from other types of teams. Piczak
and Hauser (1996) detail that self-directed work teams have more resources at their disposal, a
broader range of cross-functional skills, much greater decision-making authority, and improved
access to information (Piczak & Hauser, 1996). To achieve critical success, self-directed teams
must be allowed to take on the responsibilities of planning, setting priorities, organizing tasks,
coordinating efforts with others, making assessments of the state of the process, and take
corrective action (Piczak & Hauser, 1996). Piczak and Hauser (1996) describe the shifting role
of a leader when self-directed teams are put into place. The role of the supervisor evolves into
one of coaching and mentoring of the team or perhaps the leader can be deployed to another
position within the company. Piczak and Hauser (1996) point out that the use of self-directed
teams is almost a throw-back to an era when there was a greater degree of individual ownership
Milkshakes)and)the)decision)that)could)lead)to)disaster)27))in work. While the benefits of self-directed teams can be many, Piczak and Hauser (1996)
confirm the finding that substantial benefits and gains from the use of these teams can take
months or even years to realize thus making it clear that self-directed teams are not a quick fix
alternative.
Since implementing a TQM plan was another recommendation for Eastern Dairy, Holpp
(1992) brings an interesting debate to the table of whether or not a company should chose self-
directed teams or TQM. Why is this even important? The reason, according to Holpp (1992), is
that the stakes are extremely high for companies in terms of customer satisfaction, market share
and survival in a competitive market. While Holpp (1992) points out that there are distinct
differences between TQM and self-directed teams, the two can actually work in tandem together
with beneficial results. One of the greatest benefits of a self-directed team is that they deal with
a smaller section of the organization, but analyze and understand it more thoroughly (Holpp,
1992). When TQM and self-directed teams work well, Holpp (1992) explains that they are both
driven by a host of Theory Y assumptions; in fact, they are driven by trust. As a result, Holpp
(1992) states that the two efforts can be seen as almost interchangeable. Both are concerned with
quality, both depend on people, and both require participative leadership (Holpp, 1992). The
principal difference, according to Holpp (1992), is that you cannot have self-directed teams
without an obsession for quality, but you can put all of your resources into quality without
embracing or implementing self-directed teams. In this case study, Eastern Dairy could reap
benefits from combining the implementation of TQM with self-directed teams. Holpp (1992)
explains that insufficient understanding or education followed with too little planning and backed
with insufficient commitment and faulty execution certainly is a recipe for disaster when a
company tries to initiate a TQM or self-directed team intervention.
Milkshakes)and)the)decision)that)could)lead)to)disaster)28)) When an organization decides to shift to self-directed teams, the role of the leader or
manager is often neglected. As Ceasar and Gardner (2004) explain, since self-directed teams are
autonomous work units, they have little need for supervision. But that doesnt mean that there is
no role for the manager, it just shifts to meeting the teams needs for support through providing
resources, training and encouragement (Ceasar & Gardner, 2004). In fact, the role of manager is
a critical transition component to achieve successful self-directed teams (Ceasar & Gardner,
2004). According to Ceasar and Gardner (2004), leaders should facilitate high levels of team
empowerment in order to accommodate the shift in power from leader to team. The leaders
proactive influence behaviors can further the successful transition (Ceasar & Gardner, 2004).
When transitioning to self-directed teams, the leaders power is subject to structural effects and
behavioral effects (Ceasar & Gardner, 2004). Structural effects are simply the persons position
with the organizational structure while behavioral effects refer to the managers response to a
shift in control of resources (Ceasar & Gardner, 2004).
Historically, the linkage between self-directed teams and productivity has produced
conflicting evidence (Fredendall & Emery, 2003). To add further investigative studies to this
body of work, Fredendall and Emery (2003) fully explain how self-directed teams might offer
increased productivity to an organization: the team must have knowledge over and above that of
management, the team must be motivated to apply this knowledge via discretionary effort, and
the organizational structure must provide the possibility for this for this discretionary effort to be
applied (p. 222). The results of the study by Fredendall and Emery (2003) were conclusive to
show that the company under study using self-directed teams experienced higher productivity
than those with no system of self-directed teams (Fredendall & Emery, 2003). While the highest
levels of productivity went to organizations with self-directed teams and the combination pay
Milkshakes)and)the)decision)that)could)lead)to)disaster)29))system, it is important to note that traditional organizations that had the combination pay system
also experienced an increase in productivity. The conclusion drawn by Fredendall and Emery
(2003) was that the compensation system might moderate the effect of self-directed teams on
productivity, but may also directly affect productivity (Fredendall & Emery, 2003).
Conclusion
The dilemma faced by Stein as a member of the night crew for Eastern Dairy presents
itself with several areas of discussion that could all be attributable to the issue. The areas of
job/organizational stress along with corporate culture and ethical decision making were reviewed
to show their relevance to the issue. As a strategic plan, the recommendations of adopting a total
quality management system along with a comprehensive training program followed by the
intervention of self-directed teams for the long-term were all evaluated and shown to be plausible
for correcting the issues at hand for Eastern Dairy.
Milkshakes)and)the)decision)that)could)lead)to)disaster)30))
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