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Southern Discomfort

In: Business and Management

Submitted By macen524
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Analyze and describe the issues faced by Malescowski and the company and the reasons for these issues.
Jim Malescowski is faced with an ethical dilemma in regards to the Oconomo plant in Mexico. The Oconomo plant has history in Mexico dating back to 1921. The plant has employed generations of Mexicans during its existence. Malescowski understands that the Oconomo plant provides employment opportunities within the country. “There were 520 people who made a living at Lamprey’s Oconomo facility, and if it closed, most of them wouldn’t have a journeyman’s prayer of finding another job in the town on 9,000 people” (Daft.R, (2010) p.299). On the other hand, Lamprey’s is operating at very high a cost that is reducing their ROI. Malescowski and the plant manager have met with union officials to see if employees would perform at lower wages. The union displayed great resistance. The only way for Lamprey’s to improve their profits is to replace all current employees with new low cost employees. Malescowski has developed personal relationships with the employees and would hate to see them go. However, he must align with his CEO and organizational values.
Describe a strategy for changing things that would help resolve the situation at hand. The Oconomo plant can use the three critical innovation strategies for changing things within the organization. The first step is the exploration stage. “Exploration is the stage where ideas for new products and technologies are born” (Daft, R (2010) p.279). Malescowski and the plant manager can have a meeting with the union to discuss new creative ideas to help improve the performance of the organization. They should make the union aware that if they can’t come up with ways to improve organizational performance they will be forced to make cutbacks in labor. They would ask the union for any ideas that they may have on…...

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