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The Johnsonville Sausage Company Essay

991 words - 4 pages

I. Overview (20 points)What has Stayer done to build the capability of Johnsonville Sausage Co. and is it working?Ralph has made an enormous effort to transform the company`s structure, values and attitudes. But he also had to put efforts to realize his failing leadership approach that he, not the employees, was the source of the problem by keeping people dependent upon for decision-making; he was creating a roadblock to companies’ growth. From the theory side this refers to sheared leadership,- one of the seven characteristics of effective team by Katzenbach and Smiths.Language shapes the way of thinking and plays critical part in transforming organizations. In order to reinforce the ...view middle of the document...

For example live workers developed their proposals for new capital equipment. Finance area was viewed as resource to be used; it did not manage the budgeting process but provided service as needed to line workers.Individuals were performing their performance review and control by themselves in cooperation with his or her supervisor by developing their own job descriptions, listing responsibilities, setting performance standards, following up to the standards, defining failures and providing solutions how to fix them.Rewarding compensation system was introduced that encourage members to stay with the company, to develop their skills, take more responsibility, educate themselves,- therefore increasing their wages.From the experience at Johnsonville Sausage, the changes have positively impacted the workforce, the community, and the customers. Ralph Stayer was encouraged by the improvements in performance records after the changes took place, - a company has changed from a traditional organizational model to a transformed organization successfully.II. Analysis (15 points)What are the key value differences between Johnsonville’s “old” philosophy and Ralph Stayer’s “new” philosophy?The new value included a deep moral commitment to the individual. The primary objective became to make people better, not to make the business better. The difference is that leader in Ralph Stayer`s person moved from front position of giving orders and controlling everybody to back position of contributing and supporting his subordinates, therefore completely changing the company’s culture.The new value of commitment to companies’ success was developed involving every member in the company as an entrepreneur responsible for companies’ growth. Employees were encouraged for continues learning and development by encouraging creativity, taking responsibility, facing challenges and were let free to find the right solutions versus old style of obeying every Ralph decision.Another value of new company philosophy was that...

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