The Patterson Operation

Case Study

Problems at Section 10

• Excellent working condition.• Produces and distributes pharmaceuticals,

drugs and cosmetics.• Chance to earn extra pay lost by workers.• High costs and low output per labour hour.• Morale and discipline was low.• Considered unpopular work assignment. • Different kind of packages.• Halsey 50-50 incentive plan.

Background

• A New Operation & Severe Space Problem.• Move large part of the assembly to a

warehouse.• Became known as the "Patterson Operation.“• Work space and conditions terrible when

compared to Section 10.

At Patterson Operation

• Fred Hammond African American first line supervisor.

• Hammond made some drastic changes in the assembly operation.

• Specialized workers.• Allowed employees to influence decisions.• Acceptable to have radios.• No dress codes.

At Patterson Operation

• Employees view Patterson as their own company.• Mutual Cooperation• 32.8% increase in productivity over Section

10 (Working conditions were outstanding )

• Fred Hammond was promoted. • Replaced by May Allison.

At Patterson Operation

• Liberal attitude of management May Allison.• Results enabled workers to develop speed.• Facilitated their earning bonuses.• Shift in workers attitudes.

At Patterson Operation

• Great relationship with the workforce.• Earn the respect and admiration of the employees.• Employees participate in decision making.• Own softball team. Carrington, Inc., is a Global

Company.

Q1 Patterson Operation successful?

• Yes, It may be concluded that the Patterson Operation has been successful but at the cost of the organisation.

Q2 Leadership Styles of F Hammond & M Allison?

• Leadership - An attempt to use influence to motivate individuals to achieve some goals.

Fiedler’s Contingency Model

• A behavioural theory based on their views that there is no ‘one best way’ to lead an organisation, organise a cooperation or to make a decision.

• Also known as ‘it’s all depends’ theory.

• The effectiveness of a leader in achieving high group performance depends on the leader’s motivational system and the degree to which the leader controls and influences the situation.

Situation that favoured Fiedler’s Contingency Model

• Leader-Member Relations- Level of trust and confidence that a team has in a leader.

• Task Structure- The type of task a team is doing – clear and structured.

• Leader’s Position Power- The amount of power a leader has to direct the group and provide reward/punishment.

Hersey–Blanchard Situational 4 Leadership Styles

• Telling -The leader defines the roles needed to do the job and tells followers what, where, how, and when to do the tasks.

• Selling-The leader provides followers with supportive instructions, but is also supportive.

• Participating - The leader and followers share in decisions about how best to complete a high-quality job.

• Delegating- The leader provides little specific, close direction or personal support to followers.

Q3 Informal Organisation, Creation of their own “Company”?

• Creation of “Patterson Warriors”- Softball team.• Independent decision against company policy.• Absenteeism, tardiness and turnover not better

than the plant overall slightly worse.

Q4 Herzberg’s two factor model,What did cause the workers to be productive?

• Motivators (e.g. challenging work, recognition, responsibility) that give positive satisfaction, arising from intrinsic conditions of the job itself, such as recognition, achievement, or personal growth.

Q4 Herzberg’s two factor model,What did cause the workers to be productive?

Hygiene factors (e.g. status, job security, salary, fringe benefits, work conditions) that do not give positive satisfaction or lead to higher motivation, though dissatisfaction results from their absence. The term "hygiene" is used in the sense that these are maintenance factors. These are extrinsic to the work itself, and include aspects such as company policies, supervisory practices, or wages/salary.

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