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The No-Go Railroad

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|Course Title: |A630 Organizational Change and Development |(Note: This Case Analysis Form is adapted |
| | |from An Experiential Approach to |
| | |Organizational Development) |
|Instructor: |Dr. Pittenger | |
|Course Dates: |8/19 – 8/25 | |
| | | |

Note: This document uses tables to improve overall formatting. If you need additional lines for a section, place your cursor in the bottom right cell of the table and press tab.

Problems

2 Macro

|It is obvious that there are some communication issues, both due to the mountainous terrain and also the archaic traditions |
|The contract with the operators of the telegraph system |
| |

3 Micro

|Nepotism – pervasive around the company and leading to less work and more expenses |
|Featherbedding - limited work output in order to provide more jobs and prevent unemployment |
|Poor choice of manager – Dave was placed in as communication manager despite all his experience being in dispatch and rail management. Nick Chacco |
|is moved to a position where Dave would fare better |
|Poor planning/Overemployment of clerks. Too many clerks with no work, meant that there was poor staff planning |
|Recruitment favors family ties which leads to featherbedding |
|The current staff have a poor attitude and great resistance to any change |
|Clerk’s contract prevents them working with other departments |

Causes

|Resistance to change |
|Too many employees |
|Lack of delegation of authority or responsibilities |
|Poor HR management allowing outdated contracts to exist in all department |
|Increased expenses through a guaranteed pay process |

Systems Affected

|Structure of the company |
|Social: Morale problems are imminent due to acceptance of change, featherbedding and reduction in expenses |
|Technical: removal and combination of jobs may lead to covert and organized work slowdown. In addition, clerks are not currently allowed to travel |
|more than 30 miles to work so there are too many clerks for the available work |
|Managerial: Dave’s new responsibilities include negotiations with 2 unionized parties as well as eliminate obsolete practices and modernize the |
|railroad against opposition internally – all job descriptors that Dave has little experience of. Dave must also reduce these employee’s expenses. |
|Overall Goals and Values: No extra responsibilities accepted by employees, resistance to change and lack of good communication all negate good |
|future goals for the company. The company is wholly reactive not proactive. |

Alternatives

|Training and development – train clerks to become telegraph operators and allow them to travel in that role, allocate this new combined position a |
|better salary than clerk and look for volunteers in present clerk pool |
|HR Planning – especially of clerks. Better planning would ensure coverage for vacations and reduce numbers. |
|Job analysis – each job should have a detailed description, list of responsibilities, pay, and authority to assist in better employment planning, |
|reducing nepotism |
|Recruitment policy based on merit, not nepotism. |
|Better performance appraisal with consequences and rewards instead of overtime. |

Recommendations

|Company wide meeting with clerks to gain support for new position that reflected the joint responsibilities of clerk and telegraph operator – with |
|better pay than current clerk. |
|Group meetings with Telegraphers, outlining how streamlining must occur in their department in order for the railroad to survive. Consequences |
|outlined for everyone if the current position is maintained (bankruptcy etc.) – explain the need to modernize and change in order to compete with |
|other forms of transportation. Reduce the rumor mill by putting out the facts. |
|Form smaller working groups to discuss options in amalgamating positions and reducing expenses. Allow current staff to solve the company problems |
|of expenses and guaranteed work, or face company closure. |
|Mediate with unions and attempt to gather support. Unions understand that Chapter 11 means that Unions get broken, and without members, the new |
|company will employ a non-unionized workforce. Union negotiation is a must for their survival. |
|New goals and values – a mission statement needs to be devised and a goal for everyone to aspire to. Attempts to get everyone working towards one |
|important goal will help promote team spirit and a better working environment – reducing negativity and the resistance to change. |
|Modernization expenditure – eliminating the need for torpedoes and handing paperwork over on a pole needs to be eliminated. Investment in |
|communication technology was essential (sat phones, intranet etc.) |

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