BMAL 501 Subterm B
Robert Freeborough, Liberty University
September 11, 2022
RST Carports and Metal Roofing
Experience Levels of Employees
The experience levels of the employees played a major part in the companies declining metrics.
The selected new Divisional Manager, Art Anderson, quickly installed several changes that
negatively impacted the company. Changes in structuring, elimination of essential and highly
trained original staff, 20% reduction in pay, decrease in training for dangerous positions, forced
overtime, very little work-life balance, and bad leadership are all aspects that lead to a decline in
qualified workers. The lack of trained employees leads to a sharp increase in the rejects per 1000.
Untrained employees are more likely to have accidents. The lack of Six Sigma Black Belt
leadership further added to the demise. “It is concluded that training program has a positive
impact on retention professionalism and self-efficiency of the employees. Successful
organizations should invest on the training programs of the employees to overcome turnover
issues” [ CITATION Ahm22 \l 1033 ]. From 1980, we see a steady pattern in an overall decrease
in rejects until 2018, which coincides with the time frame that Anderson put drastic changes in
place. From 2018 until 2020 we see a sharp uptick in rejections from 7/1000 in 2016 up to
160/1000. We see worker overtime hours per employee shoot up as well. From 1980 until 2016
we see an almost steady average of around 50 or fewer overtime hours up until 2018 when the
average number shoots up to 120 and increase each year until it reaches an average of 360
overtime hours per employee. Overworked employees make more mistakes and are unhappier
with a poor work-life balance. Prior to 2017, the average number of accidents was at most 13 per
year. In 2018 we see a sharp uptick of 25, reaching as high as 89 in 2020. The combination of
overtime, an increase in the number of rejects per 1000, and accidents all show a change was
made in 2017 for the worse of the company’s employees. This had a negative effect on morale,
which in turn made a decrease in workflow while previously loyal employees quit.
How Leadership Styles Could Have Affected the Change at RST
This section will explain how leadership styles played a part in the companies declining metrics.
Reviewing the data collected about management before and after the company sold tells a story
of monumental change in how executive leadership changed for the worse. The previous
leadership/management list shows 14 positions in the current company’s structure. The list of
current leadership/management shows only 7 positions. Anderson did not reduce the titles, he
reduced the personnel, one can see that he consolidated most positions into one and expected the
leader to wear two hats, he did this while offering 20% less in pay. The previous
leadership/management decision style was 100% democratic, while the current
leadership/management decision style varied 57% autocratic, 28% laisser-faire, and 14%
democratic. Previous management all practiced democratic leadership wherein they collaborated
and communicated with the entire company whereas the current leadership utilized a mostly
autocratic style where upper management made decisions without input. The 28% of laisser-faire
leadership had a hands-off approach which is a management style that makes employees distrust
the seemingly lazy hands-off managers. “Under the laissez-faire form of leadership, a leader
makes no decisions. This type of leadership results in subordinates exhibiting negative attitudes
and performance” [ CITATION Ani18 \l 1033 ]. Transactional leaders do things with the
expectation that employees would return the favor. Transformational leaders empower and equip
others to reach their full potential with the expectation that in return the employee would go on
and influence others thereby compounding that effect of leadership.
Before the change, the leadership style was 42% transformational, 21% transactional 28%
servant, and less than 1% situational. The power type also varied greatly between the pre- and
post-company sales. According to the peer-reviewed article, the following results were found
about leadership style in an organization and its effect on employees. “The findings confirmed
that empowering leaders are more likely to have a positive relationship with their subordinates
and in turn, stimulate employee-driven innovation” [ CITATION Ech21 \l 1033 ]. All these
points combined show that the management styles played a big role in the companies declining
metrics.
How Management Decisions could have Affected the Change at RST
The original team of Executive managers were Six Sigma Blackbelts and certified by ASQ. “To
enhance quality with reduction in cost, there is a need for employing Design of Experiments
(DoE) tools like Taguchi method, Shainin tools, and factorial method etc.”[ CITATION Kha18 \l
1033 ]. The management team was experts in focus on decreasing defects and increasing process
efficiency through statistical analysis. When Anderson eliminated the buffers in place, he ruined
the internal checks and balances on top of everything else, Anderson changed the job description
and titles which took the control away from people wanting to stay in a position/field they
possibly loved.
How Types of Power Could Have Affected Change at RST
Before 2017 we see the power types of 64% of managers using expert power as the main type
but post-sale, we see the power type of coercive, reward, and expert, however, the biggest
negative change is the addition of coercive power. “Further, coercive power sources are
negatively, and non-coercive power sources are positively associated with trust. Also, coercive
and reward power sources are positively associated with agent dependence, whereas expert,
referent, and legitimate power sources are positively related to affective commitment. Finally,
referent power is found to be positively associated with environmental munificence”[ CITATION
Sus19 \l 1033 ]. Having a management team that suddenly utilized a 28% coercive power style
completely altered the company structure for the worse.
A Pareto Analysis of the Three Main Problems That Could Have Affected the Change at
RST
The three main problems that could have negatively impacted RST are the organization’s
management structures, management culture, and worker culture. The new RST retained none of
the original leadership personnel and as a result, the original RST had completely different
management decision styles, leadership styles, and power. The new RST utilized mainly
transactional leadership with coercive power type. Coercive power is not ideal. The original RST
had no one in management who was Laissez-Faire or Autocratic, only democratic, the new RST
was mainly utilizing autocratic decision styles and secondly used Laisse-Faire.
In the new RST, the upper management was not in agreement with a decision style. Secondly, it
is very important to treat employees well because they are the glue to the organization’s
profitability. The original RST understood the value of training and even ensured that all upper
management was Six Sigma black belt certified. The new RST’s goal was to cut costs while still
addressing the bottom line however they were ill-equipped with all of the new changes to
personnel.
Recommendations
Reversal of the three most impactful areas would be the start to growth. management structures,
management culture, and worker culture. Anderson could look into restoring the positions and
titles to what they were in the original RST and in doing so he could bring back the original
payment for the management and employees. Second, training should revert to the 48-hour
structure. Third, the work culture is currently toxic- He needs managers to be all of one accord
when it comes to leadership style, and a recommendation of democratic would be ideal for all
managers to emulate.
Biblical Integration
Jesus modeled Transformational leadership the best, He had people around him whom He was
empowering that would change the world. Luke 9:1-2, “When Jesus had called the Twelve
together, he gave them power and authority to drive out all demons and to cure diseases, 2 and he
sent them out to proclaim the kingdom of God and to heal the sick (English Standard Version
Bible, 2001). Jesus knew how to rally followers to finish His work once He left earth.
Conclusion
In conclusion, the inexperience of the new untrained employees cost the company more due to
high employee turnover and accidents, and quality. When Anderson lost all original leadership,
he lost the built system of checks and balances in the company. RST’s new leadership style
changes delayed workflow. Management decisions and the types of power used were ineffectual
for achieving the company’s goal. These reasons all had a part to play in the downfall of the once
profitable RST.
References
Ahmed, A. K. (2022). IMPACT OF TRAINING ON EMPLOYEES RETENTION, PROFESSIONALISM AND SELF-
EFFICIENCY. International Journal of Information, Business and Management, 220-242.
Echebiri, C. K. (2021). The relationship between leadership styles and employee-driven innovation: the
mediating role of leader-member exchange. Evidence-Based HRM, 63-77.
Khavekar, R. &. (2018). Analyzing the need for a comparative study of Shainin DoE and Traditional DoE
tools for deploying Six Sigma in Indian manufacturing companies. IOP Conference
Series.Materials Science and Engineering.
Satterlee, A. (2018). Principles of Management and Leadership(1st Edition) A Christian Perspective.
Synergistics.
Sushant Kumar, P. H. (2019). Impact of power on channel members’ behavior: evidence from India.
Journal of Business & Industrial Marketing.
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