Why some manufacturing plants improve, then collapse again
Over the years, I have noticed a pattern in almost every underperforming plant I have worked in. At first glance, it appears that the employees are the problem. The same people have been there for years, yet the plant struggles. Productivity is poor. People seem unwilling to work. The obvious conclusion is, "The workforce is weak." But that is rarely the real reason. When I spend time understanding the organization, a different picture emerges. The employees have been living with years of unfair treatment. Salaries are below market standards. Salary payments are delayed. Annual increments are negligible or absent. Promotions and increments are influenced by favoritism or the ability to pressure management. Unnecessary salary deductions become common. Eventually, people stop giving their best. They simply adjust to surviving. A poor salary gets compensated by an easy work environment. Then a new Plant Head arrives. If he merely follows the existing system, nothing changes. He ...