I need help with this Study cases. I have 2 But I will submit separately so won't get confused.... This is only question, but only needs around 450 words.Alvis Corporation
Kevin McCarthy is a manager of a production department in Alvis Corporation, a firm that
manufactures office equipment. After reading an article that stressed the benefits of participative
management, Kevin believes that these benefits could be realized in his department if the
workers are allowed to participate in making some decisions that affect them. The workers are
not unionized. Kevin selected two decisions for his experiment in participative management.
The first decision involved vacation schedules. Each summer the workers were given two weeks-
vacation, but no more than two workers can go on vacation at the same time. In prior years,
Kevin made this decision himself. He would first ask the workers to indicate their preference
dates, and then he considered how the work would be affected if different people were out at the
same time. It was important to plan a vacation schedule that would ensure adequate staffing for
all the essential operations performed by the department. When more than two workers wanted
the same time period, and they had similar skills, he usually gave preference to the worker with
The second decision involved production standards. Sales had been increasing steadily over the
past few years, and the company recently installed some new equipment to increase productivity.
The new equipment would allow Kevin’s department to produce more with the same number of
workers. The company had a pay incentive system in which workers received a piece rate for
each unit produced above the standard amount. Separate standards existed for each type of
product, based on industrial engineering study conducted a few years earlier. Top management
wanted to readjust the production standards to reflect the fact that the new equipment made it
possible for the workers to earn without working any harder. The savings from higher
productivity were needed to help pay for the new equipment.
Kevin called a meeting of his 15 workers an hour before the end of the workday. He explained
that he wanted them to discuss the two issues and make recommendations. Kevin figured that the
workers might be inhibited about participating in the discussion if he were present, so he left
them alone to discuss the issues. Besides, Kevin had an appointment to meet with quality control
manager. Quality problems had increased after the new equipment was installed, and the
industrial engineers were studying the problem in an attempt to determine why quality had gotten
worse rather than better.
When Kevin returned to his department just at quitting time, he was surprised to learn that the
workers recommended keeping the standards same. He had assumed they know the pay
incentives were no longer fair and would set a higher standard. The spokesman for the group
explained that their base pay had not kept up with inflation and the higher incentive pay restored
their real income to its prior level.
On the vacation issue, the group was deadlocked. Several of the workers wanted to take their
vacations during the same two-week period and could not agree on who should go. Some
workers argued that they should have priority because they had more seniority while others
argued that priority should be based on productivity, as in the past. Since it was quitting time, the
group concluded that Kevin would have to resolve the dispute himself. After all, wasn’t that what
he was being paid for?
This question was answered on: Sep 21, 2023
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