Posts

Showing posts with the label OrganizationCulture

Why some manufacturing plants improve, then collapse again

Image
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 ...

When a Manufacturing Plant starts behaving like a farmhouse

Image
Every organization develops its own culture. Sometimes intentionally. Sometimes accidentally. During my career, I have noticed that the biggest challenge in a manufacturing plant is rarely machinery. It is the way authority is distributed and exercised. In one organization, the Chairman is the ultimate authority, but several Directors enjoy almost equal influence. Each Director is entrusted with a set of departments. One looks after Mechanical, Projects and Stores. Another oversees Production and Quality. A third manages Automobiles. Yet another handles Electrical, Instrumentation, HR, IT, ERP and Branding. On paper, the arrangement appears balanced. In practice, it can create unexpected consequences. Some Directors stay at the plant in guest rooms, just like I do. Officially, the working hours are from 9:00 a.m. to 6:00 p.m. In reality, people appear and disappear according to personal convenience. Weekends often resemble a family retreat, with guests, children and relatives visiting ...