law

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 wasn’t 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 person’s 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

isn’t just about creating a work/life balance program since that certainly doesn’t 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 person’s 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 didn’t 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 leader’s 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 one’s 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 person’s 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 person’s 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 organization’s 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

organization’s 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 wasn’t

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 other’s 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 today’s 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 organization’s 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 wouldn’t have happened. Organizational culture can inhibit or

allow for the success of an organization (Kujala & Lillrant, 2004).

All of this isn’t 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 isn’t 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 organization’s 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 organization’s 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 organization’s 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 company’s 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). Ford’s

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 team’s 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 doesn’t mean that there is

no role for the manager, it just shifts to meeting the team’s 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 leader’s

proactive influence behaviors can further the successful transition (Ceasar & Gardner, 2004).

When transitioning to self-directed teams, the leader’s power is subject to structural effects and

behavioral effects (Ceasar & Gardner, 2004). Structural effects are simply the person’s position

with the organizational structure while behavioral effects refer to the manager’s 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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