Download - Warehouse Management Case Study
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“Elements of Management”
Case Study: Introduction of Computerized Warehouse Technology
Zoi E. Fountzoula
Nick T. Nanas
Aneza A. Pantaleon
John N. Skianis
Peter J. Stavroulakis
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Introductory Presentation of the Case Study
Spare parts warehouse of a manufacturer of heavy equipment
Until recently the warehouse was working manually
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Managers decide to install a fully automatic and computerized
system in order to increase productivity
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The system is expected to:
• Minimize waste• Optimize resources• Save time• Save money
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What happened:
First month productivity increased more than 100% (as expected)
The operator's work became easier and safer
No worker had been redundant, however on the contrary salaries had increased
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But at the third month after the implementation of the system:
Errors start creeping into the system
Absenteeism became a daily phenomenon
Examples of what appear to be sabotage
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The automatic system appeared to be less efficient than the old manual
system
•A big investment eventually seemed not to be viable
•Workers seem to lack synergy with the system
•Productivity instead of increasing, eventually decreased
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Since the system has been widely accepted by industry and simultaneously was performing
properly at the beginning of its implementation, it cannot be accused for the
damages
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“Deliberate absenteeism is typically an intentional act in which the employee
rejects a given work situation”
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This fact, in addition to the situation in which the employees were not given adequate information about the eminent changes in their work reality, the hint that the number of workers and machinery will diminish (along with the evidence of sabotage) lead us to believe that the system is being ...
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...sabotaged
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With the underlying causes:
Fear of redundancy Powerlessness Fast change in work
processes that created psychological imbalance in employees
Inefficient training and information about the new system
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Leading to OMB Type D:
• Damaging, destructive and/or disparaging behavior committed intentionally
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Solutions
1. Management has to assume responsibility for the lack of informing employees and take preventive action against similar instances in the future
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2. Management has to inform employees about the changes in their work situation, to reassure them that their jobs are not at stake, and that the new system is not an
enemy
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3. Improve the efficiency of communication between the company and the union in order to avoid misunderstandings and
communication failures
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4. Perform an inquiry in order to identify deviant or potentially dangerous behavior of staff (managers and
employees) in the future
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Thank you for your attention!