This solution did solve Andrew’s quantity problem, however it cloaked another problem that soon became apparent. Despite the good numbers that were now being produced, the quality of the pieces being produced dropped drastically, as operators were now producing as many parts as possible in order to receive a healthier pay check. This led to the implementation of a quality control department that was meant to dispose of the problem. However this in turn led to issues on the factory floor and in the manager’s office. The problem is that the personnel in the quality department do not want to appear as if they are depriving there fellow workers on the production lines of money by rejecting parts that are not up to standard. These problems stem from weak hiring policies with persons being hired for jobs that they are not necessarily equipped to do.
Andrew has also experienced discipline problems with workers using machinery that is meant to be in maintenance in order to earn extra income.
It is our contention that a major source of the problems facing Andrew is the apparent lack of support from his relative Jian Wei. It seems that there is a great deal of nepotism running through the company not only with the hiring of family for management positions but also for positions on the factory floor, “Jian Wei would contact city officials and friends and relatives and ask them for recommendations on who to hire”, this is a terrible way to go about hiring. What experience do the concerned individuals have with this type of work and will they have the company’s best interest’s at heart? Andrew did not agree with Jian’s hiring policies and this has caused tension between the two.
Jian has opposed Andrew on major decisions and it is apparent that Jian believes that the company is there to provide for the workers as oppose to a mutual relationship where both benefit. The best examples of this are the stance that Jian has taken on the firing of an employee that is in clear violation of work rules, the using of a machine designated for maintenance. On this issue he not only disagreed with the disciplinary action that Andrew took but balked at the idea that the employee may be fired. Jian claimed that this took away the individuals “iron rice bowl” despite the fact that the person had clearly broken a major rule of conduct. Jian also abhorred Andrew’s idea to introduce a demerit system for quality personnel that pass below standard product. It is Jian’s belief that if an individual believes he/she is “doing the right thing” they should be absolved of punishment. It seems plainly obvious that Jian does not have the company’s best interest at heart as the passing of low grade product compromises the company in both sales and reputation.
Jian is either deliberately or inadvertently trying to undermine Andrew’s position. This is only going to bring a poor attitude to the work place and lead to a lack of respect for management as a whole.
It would be beneficial to the company as a whole if a clear division of tasks were drawn up for Jian. It seems at the moment that he is over stepping his mark and interfering in Andrew’s attempts to run the company the way he wants to. It may be beneficial for Andrew to go to his father and request that Jian be relocated to another plant or position within the company before his reputation is damaged. The idea of having the position that Jian occupies is a good one as it provides Andrew with an insight into a culture that is alien to him. However the individual that is hired should be fully aware that Andrew is in charge. That is not to suggest a totalitarian working society but all final decisions should lie with the general manager.
There should also be a rehiring policy implemented weeding out those employees that are not equipped for their task and replacing them with experienced individuals. Thus nullifying the “job’s for the boys” attitude that is prevalent in the factory at the moment. The most obvious suggestion to make is to discipline those individuals that are in breach of company policy or are not performing satisfactorily. But as previously mentioned, this is not the proper thing to do in China, however it is ridiculous to suggest that every Chinese company condones poor performance and violation of their individual rules and regulations.
In order to combat the problem that Andrew faces with the pay system, we would suggest a mixture of all three systems. We feel it is necessary to have a decent level of basic pay, however it is also beneficial to have a reward system. Thus if the bonus levels were set higher under the strict rule that quality must be the primary focus the bonus system could be a major incentive for the production operators. In order to insure that quality is maintained the demerit system must be introduced into the pay structure of the quality group, with them being fully aware that any percentage of faulty parts passed over that deemed normal will result in a loss of money.
Andrew’s anticipation that his previous work experience would lead to immediate success in the new plant is analogous to many corporations expanding into foreign territory. The distinct cultures in each region present an unforeseen hurdle to managers trying to succeed in a new country or region. These organizations are being forced to adjust their business practices in order to succeed.
