UNIVERSITY OF SANTO TOMAS

UST - ALFREDO M. VELAYO - COLLEGE OF ACCOUNTANCY

ELE HBO-HUMAN BEHAVIOR IN ORGANIZATION

CASE ANALYSIS

Consolidated Products

Submitted by:

SANTOS, Paulo Emmanuel

TICONG, Jirl

TOLENTINO, Chiara

UY, Alexander

VALES, Mary Franchesca

P-ELE-HBO

Submitted to:

Inst. Mark Lester D. Toribio, MBA

October 30, 2022

Consolidated Products is a medium-sized manufacturing company of consumer products

composed of plant workers not belonging to or recognizing a labor union. The case presented the

company's former plant manager for ten years, Ben Samuels. Ben had close relations with the production

workers due to his democratic, participative, and inspirational leadership (Consolidated Products

Managers’ Leadership Styles - 1731 Words | Case Study Example, 2021). Employees liked his leadership

style because Ben understood the workers' needs and the value they bring to the organization. Ben

imposed multiple human relations activities during his time, aiming to help the workers with personal and

professional development. He believed that properly treating his subordinates would result in higher

efficiency and productivity at work, more positive professional and personal growth, and a greater sense

of loyalty to the company. Ben also believed that treating the employees right would improve their

performance even without close supervision from higher officials. He applied the same principles in

managing his supervisors. However, with this management style, Ben did not set objectives and standards

for the whole plant and the different departments within to follow. He never asked his supervisors to

prepare and develop plans and programs for improving plant productivity and product quality. As a result,

during Ben's time as a plant manager, the plant had the lowest employee turnover among Consolidated

Products' five plants. On the downside, the plant recorded the second-worst cost and production levels.

For these reasons, the company asked Ben to take early retirement after being acquired by another firm.

This time, the case introduced Phil Jones as the replacement of Ben for the plant manager

position. Phil's beliefs differ entirely from Ben's. Consistent with his well-known reputation, he

immediately initiated changes inside the plant by implementing cost-cutting methods, introducing a

computer monitoring system, setting demanding objectives, and checking employee performance. Unlike

Ben's employee-friendly management style, Phil employed autocratic and goal-oriented leadership

(Forsyth, 2018). Phil believed that employees should work hard to sustain their jobs or that others who are

more efficient and deserving may take their position quickly. He primarily implemented the cost-cutting
 methods because he deemed these costs (e.g., training programs for supervisors and equipment

maintenance) excessive and merely a waste of time. Aside from these methods, Phil also instructed his

supervisors to establish high-performance regulations and standards for each department. Although the

whole plant structure had more direction, Phil demanded more consistent performance from his

subordinates while subjecting them to a stricter and less relational working environment. As a result, after

his first year as a plant manager, the plant's performance increased positively due to lower costs and

higher outputs. However, workers were not happy with the leadership style of their new plant manager.

Some employees left their jobs, others were fired due to incompetence, and a couple of them started talks

about unionizing. These circumstances resulted in higher employee turnover, leading to more significant

problems such as difficulty finding replacements.

II. Definition of the Problem

Under Ben Samuels’ management, employee satisfaction was considered more important than

effective and efficient operations. Although this type of management produced the lowest employee

turnover among the company’s five plants, it is also responsible for the plant obtaining the second-worst

record for costs and production levels. On the other hand, when Phil Jones was brought into the company

as a replacement, he did the complete opposite and displayed a blatant disregard for the company’s

employees. As a result, supervisors and machine operators started to quit, and talk of unionizing started

among the workers. Phil also exhibited signs of micromanaging, which could be a lack of freedom and

trust within the workplace. However, he was successful with cost-cutting and increased production output.

For the company to be successful, a balance between employee satisfaction and the efficiency of

operations must be present. Without these two, there is little hope for the company to grow. Thus, they

must devise a plan to support these factors without sacrificing too much of each.
III. Alternative Courses of Action (ACA)

● Provide opportunities to do meaningful work such as by giving autonomy (The Deloitte

Model).

According to the Deloitte Model, autonomy is one of the four essential components

employees need to find meaning in their job. Employees tend to thrive when given independence

and control over their work, giving them a sense of ownership. In the case of Phil, he requires

supervisors to check with him first before taking any significant actions, thus controlling

whatever actions they will make, which does not give them freedom over their work. As a result,

supervisors left to take other jobs, and turnover has increased. The advantages of autonomy

include an engaged workforce, a higher employee retention rate, employee engagement, and a

higher level of discretionary effort, which translates to increased productivity. Meanwhile,

disadvantages include making careless decisions and complacency among employees.

● Enhancing visibility (Kahn’s Model of Employee Engagement).

William Khan identifies three dimensions of employee engagement–physical, cognitive,

and emotional. Physical engagement refers to the physical and mental energy exerted. Cognitive

engagement is when employees know and deliver their employer’s vision and strategies.

Emotional engagement emphasizes positive interpersonal relations, group dynamics, and

management styles (Sinclair, 2020). In order to achieve these dimensions, executives at the top

must make an effort to communicate directly with their subordinates. The goal is to make

employees, as individual contributors to the organization, feel that their accomplishments are

noticed and appreciated. In addition, these conversations offer a unique opportunity for them to

share their perspectives regarding their work and the challenges they encounter. These encounters

will make employees feel they genuinely matter to the organization, increasing their work

engagement in a multi-dimensional aspect (Carucci, 2019).

Maslow’s Hierarchy of Needs includes five levels of human needs, namely:

physiological, safety, love and belonging, esteem, and self-actualization. According to this theory,

an individual tends to be productive and motivated if he is healthy, safe, secure, and in an

environment such that imposing fear and control, disrespect, and stress about meeting strict goals

and deadlines will not motivate them to work harder. In addition, emotional support and safety in

the workplace are other aspects of safety. Worrying about job loss due to budget cuts will not lead

to a step up to a higher level in the hierarchy. Advantages of providing safety include strong

company culture, increased productivity, and encouragement for employees to perform to their

highest ability.

IV. Recommendation

People and relationships make an organization. Essentially, they provide an organization with a

unique identity and rich culture. When people change, then so does the organization. As a result, with

globalization and diversity, various organizations have been created with their own unique set of

perceptions, attitudes, and values. However, all organizations have the same purpose: accomplishing

shared objectives through interpersonal and organizational relationships. In this case, a balance between

worker satisfaction and operational effectiveness is necessary for the business to succeed.

After a thorough analysis, the second alternative course of action is selected: enhancing visibility

(Kahn’s Model of Employee Engagement). Using William Khan’s employee engagement model, the three

dimensions of employee engagement must be satisfied. Therefore, the supervisors must try to speak with

the employees personally. The objective is to help employees feel valued and recognized for their

contributions as individuals inside the company. Additionally, they have a rare chance to share their

thoughts on their profession and the difficulties they face during these interactions. Lastly, this will foster
workplace relationships, a major source of employee motivation essential to promoting and maintaining

productivity. At the end of the day, the organization can enjoy the best of both worlds, balancing

employee satisfaction and operational effectiveness.

Becoming irresistible: A new model for employee engagement. (n.d.). Deloitte Insights.

https://www2.deloitte.com/us/en/insights/deloitte-review/issue-16/employee-engagement-strategi

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Carucci, R. (November 1, 2019). Balancing the Company’s Needs and Employee Satisfaction. Harvard

Business Review.

https://hbr.org/2019/11/balancing-the-companys-needs-and-employee-satisfaction

Consolidated Products Managers’ Leadership Styles - 1731 Words | Case Study Example . (2021). Free

Essays. https://ivypanda.com/essays/consolidated-products-managers-leadership-styles/

Forsyth, D. R. (2018). Group dynamics (7th ed.). Boston, MA: Cengage Learning.

Importance Of Organizing. (2022). Tutorialspoint.com.

https://www.tutorialspoint.com/management_principles/management_principles_importance_org

anizing.htm#

Marketing Team. (2022). 4 Psychological Theories To Increase Team Productivity. SaaS BPM.

https://saasbpm.com/psychological-theories-team-productivity/

Sinclair, S. (November). Kahn's 3 Dimensions of Employee Engagement: Still Good to Go in 2021?.

Talkfreely. https://www.talkfreely.com/blog/dimensions-of-employee-engagement

The Importance of Human Relations in the Workplace. (2019). Small Business - Chron.com.

https://smallbusiness.chron.com/importance-human-relations-workplace-23061.html