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Top Trucking Company had a yard in Wollongong that was rapidly gaining appreciation from the company and was becoming famous in the region for its excellent performance. The fame that the company has been achieving in the past few years was because of a change that was brought into the company and due to the efforts of a union delegate – George Psaros. The company was bought by a big transport group three years ago and the old yard manager was retired. The old owners of the company did not want to invest any resources in the maintenance of the vehicles and were not even managing the human resource properly due to which there were a number of conflicts, accidents and stoppages. After the company was bought up by the new owners the whole fleet of vehicles was rejuvenated. The yard was completely clean and the drivers were given new uniforms to wear. The whole system was computerised and even a new manager was hired in the organisation. Thereafter, the organisation experienced a lot of positive changes and became the most successful workplace in the region. In this assignment, we will discuss the case of Top Trucking Company from the view point of human resource management.
The old working practices at the Top Trucking Company were not good as the owners of the company did not want to invest any resources in improving the work conditions. The work conditions were poor. The vehicles were not maintained properly and they were much old than what they should have been. Further, lack of effective human resource management also resulted in a number of issues in the organisation. The staff of the company was not acting professionally as there were too many conflicts, accidents and a lot of unnecessary stoppages. Once the company was bought by the new owners, the scenario started to change. With the new manager, a lot of things started falling into place. The new owners invested heavy resources in order to rejuvenate the entire fleet of vehicles. A new computer system was installed in the organisation and the drivers too were given new uniform to wear. The new manager was very effective in managing the human resources of the company. George Psaros, the union delegate, who was an autocrat and loved to demonstrate his power in the organisation, also felt that the manager was someone who had knowledge about how the things should be done at workplace. The new manager followed an open system of communication. He frequently communicated with the drivers and the union delegates and never tried to hide anything from them. Unlike the previous management, when there were problems in the organisation, the new manager never blamed anybody immediately. He took his time to explore the issues rationally and come to a conclusion. Further, the new manager also took initiatives that were aimed at improving the occupational health and safety. Even when George came up with some issues against the management, the new manager patiently handled the issues and demonstrated his negotiation skills every time.
All these changes introduced by the new manager paved the way of the company towards becoming the most efficient workplace in the region. The only reason because of which the yard achieved success was because all the changes complimented each other. The changes brought in by the new manager were all intended towards changing the entire system in the yard. It not only aimed at improving a part of the system but improved the entire system itself. The changes that were introduced in the yard were beneficial for the employees as well as for the management. The employees got new uniforms, improved fleet of vehicles, an open system of communication and a place where their problems were heard carefully and the negotiation was fair and logical. On the other hand, changes, such as introduction of computer systems, recruiting new manager, etc., were all beneficial for the entire warehouse. The changes were implemented in such a way that they were in a perfect harmony and could be implemented side by side. Further, the understanding between the new manager and the union leader kept on building up with time and both of them became willing to work with each other and negotiate whenever there were issues in the organisation. Such an understanding between the two was proving to be a catalyst that was facilitating the changes being implemented. Thus, they complemented each other and paved the way of the warehouse towards its success.
If we consult the literature and try to study the subject of change management, we will realize that it is very important for the change to be implemented by considering the entire system. Pioneers of change managements, such as Kurt Lewin and John Kotter, have also discussed the important of implementing a change by keeping the entire system in the mind. In the case of Top Trucking Company, the new manager implemented changes that were aimed at improving the conditions of all the parts of the entire system i.e. the employees, the machinery, the fleet of vehicles, the union, etc. Thus, the changes made became complementary to each other.
The changes implemented in the warehouse were in perfect harmony with each other and were the prime reason for the success of the yard. Things were falling into place and the workforce too had started trusting each other i.e. the employees started trusting the management and vice versa. George – the union leader and the manager were now comfortable with each other and also respected each other’s way of working. The biggest issue in sustaining the changes achieved in the workplace is if one of them (George or the new manager) was asked to leave the organisation.
If anyone of them leaves the organisation and moves to some other warehouse, the scenario at the Wollongong yard will completely change. The trust that now exists between the employees and the management will suffer a huge set back and it might take a lot of time for the management to build the same level of trust in the minds of the employees. At present, George is quite comfortable working with the new manager and appreciates his way of working. We have also seen that when at times George had to support his followers even when their demands were not ethically right or when they were crossing the line during a negotiation, the manager never lost his calm and handled such situations in the best possible manner. Also, the manager never hesitated in consulting George about some important matters related to the warehouse and the employees. Further, the manager openly shared important information related to the performance of the yard with the drivers and the union and never tried to hide anything from them. The employees as well as George started respecting the new manager and George felt that he could comfortably work with the new manager. In such a scenario, if either of the two leaders (George or the new manager) is transferred or removed from the warehouse, the situation might go bad. If a new manager comes up, it might not be possible for him to sustain the changes that had been introduced by the present manager and to negotiate with the union or the employees in the same way as the present manager has been doing. On the other hand, if the union leader (George Psaros) is removed or replaced, it is highly possible that the new leader might not be efficient enough to lead the workforce (Gallup, 2016). A newly appointed leader would never be able to gain respect straight away and the followers too will hesitate in following a new leader all of a sudden. Further, the new leader might not be good in negotiating and might raise problems for the manager by not co-operating. Thus, the co-operation or the understanding between the two (union leader and the new manager) is the key factor behind the success of the warehouse and if this partnership breaks, it might become very difficult to sustain the changes that the management has been able to implement in the warehouse (Go2hr.ca, 2016). If this understanding between the union leader and the senior level manager is lost in any case, the company would not be able to sustain the changes that have leaded the company to its present position.
When we study the change management models proposed by Kurt Lewin or Kotter, we find that they have always laid a great deal of stress upon reinforcing the changes that are once achieved in the workplace. It is important to reinforce the achieved changes using optimal strategies so that the workforce does not restore to its earlier working practices. In this case, the understanding between the new manager and George and they themselves are acting as reinforcement to the change program. Thus, if either of them leaves, it would become very difficult to sustain the change due to absence of reinforcement.
Employees are the most important stakeholders in any industry or business organisation. Any type of change introduced in any part of the system would have a direct impact on the employees. Thus, employees are definitely a part of the change program even if they do not intend to be a part of it.
When it comes to tough blue-collar unions, it is obvious that they are more likely to engage in workplace changes as compared to public or service sector unions. The prime reason behind the fact is that blue collar unions are those who have to manual in the workplace where they work. Manual labour is always difficult as compared to service sector labour a service sector job is generally an office job where all the work can be accomplished using machines or information technology (Smallbusiness.chron.com, 2016). For blue-collar jobs, workplace changes means changes in their work routine, operations, work environment, working hours, breaks, minimum wage rates, allowances, benefits, compensations, recreational activities, etc. which can have a huge impact on the labour that they have to do. On the other hand, for public sector or service sector unions, workplace changes generally relate to changes in shifts or working hours, information systems, technology, etc. which do not have an impact on the work they are required to do. Therefore, it can be seen that for blue collar unions, changes in the workplace can have a he impact on the work conditions or the amount of work that they have to do or their wages whereas changes in workplace for service or public sector unions is not that impactful and is mostly related to change in operations or strategies. This is also one of the main reasons because of which we have observed greater number of blue collar unions as compared to service or public sector unions (Parietti, 2015). Thus, it can be easily concluded that tough blue collar unions are more likely to engage in change management programs as compared to public or service sector unions because they have a lot more things at stake when a change is implemented in the workplace.
To get a deeper insight into the topic, one can consult data available from the past and gather knowledge. We will find that there have been greater numbers of issues in blue collar organisations whenever there is a change being implemented as compare to the issues experienced in service or public sector organisations. The literature also tells us that blue collar unions become more aggressive and involved when the changes are related to their job or work conditions. We can also go into further details and check the amount of damage that the blue collar unions have done to the organisations as compared to service or private sector unions. One of the best examples to illustrate the engagement of blue collar unions in the matters of the organisation is the incident that took place in Maruti’s Manesar Plant in India where the General Manager of the workplace was burnt to death by the angry mob while many others were injured in the mess caused by the workers (Livemint.com, 2016). The incident shows the extent up to which the blue collar unions can become aggressive when the situation is related to their job conditions. (Standard, 2016)
Top Trucking Company has been lucky to have a warehouse where the senior level management and the union leaders are comfortable with each other, have respect for each other and are willing to work with each other because of which, the warehouse has been declared as the best performing workplace in the entire region. The company should try its level best to help the warehouse in sustaining the changes as it gives an example of how a workplace can achieve success when the union management and senior level management are in perfect harmony with each other.
(2016). Smallbusiness.chron.com. Retrieved 20 August 2016, from http://smallbusiness.chron.com/bluecollar-worker-whitecollar-worker-11074.html
Gallup, I. (2016). Unions and Management: A Blissful Marriage?. Gallup.com. Retrieved 20 August 2016, from http://www.gallup.com/businessjournal/21727/unions-management-blissful-marriage.aspx
Managing in a Unionized Workplace: Getting Things Done in a Constructive Way. (2016). Mindtools.com. Retrieved 20 August 2016, from https://www.mindtools.com/pages/article/managing-unionized.htm
Parietti, M. (2015). Blue Collar Vs. White Collar: Different Social Classes? | Investopedia. Investopedia. Retrieved 20 August 2016, from http://www.investopedia.com/articles/wealth-management/120215/blue-collar-vs-white-collar-different-social-classes.asp
Standard, B. (2016). Subros Fire: Maruti Suspends Production At Manesar And Gurgaon. Business-standard.com. Retrieved 20 August 2016, from http://www.business-standard.com/article/news-cd/subros-fire-maruti-suspends-production-at-manesar-and-gurgaon-116053101384_1.html
Understanding the Differences: Leadership vs. Management - HR Information for BC Tourism Employers - go2HR. (2016). Go2hr.ca. Retrieved 20 August 2016, from https://www.go2hr.ca/articles/understanding-differences-leadership-vs-management
What triggered the violence at Maruti’s Manesar factory? - Livemint. (2016). Livemint.com. Retrieved 20 August 2016, from http://www.livemint.com/Companies/lRKRrq32VAFYpL1mGieWYK/What-triggered-the-violence-at-Maruti8217s-Manesar-factor.html
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