Assignment task: Harry recently took over management of his family's textile company. For more than thirty years his father ran the company with an iron hand.
Workers of different nationalities, mostly Asian immigrants, were hired to reduce the chance of unionization. Wages continue to be paid on a piecework basis-that is, for actual sewing completed. Overall, workers' earnings average $1.50 over the federal minimum wage. Schooled in Theory Y, Harry is troubled by what he sees. The sewing jobs are repetitive and boring. Little interaction occurs between the small cadre of white male executives and the predominantly female, Asian line workers.
Midlevel management positions are few because employee output is so easily measured.
Reviewing the financial statements, Harry learns that the company has been modestly successful over the years. Return on investment is slightly above industry standards. Stiff international competition makes Harry hesitant to raise wages or alter "the system."
1. Should Harry change the company's management philosophy and structure? If so, how?
2. What risks does Harry run if he does not make any changes?
3. If "covenantal management" were fully implemented in your company, what changes would have to be made?