Question

The culture set by the new CEO, Tom Lawrence, was Mission culture. He wanted National Industrial products to achieve goals, such as sales growth, productivity, or market shares. He also implemented a reward system for the employees. They were rewarded generously, if the productivity, sales and profit goals were met. Those who couldn’t meet the goals were chided in front of their colleagues to set an example.

The advantages of the set culture by Lawrence was that the production costs were reduced by almost 20 percent. He was also able to increase output and sales by 10 percent. Lawrence was able to achieve his set goals within the first year of his presidency at the National Industry.

The disadvantages of the culture were the low morale and high employee turnover. Turnover was at its highest, within one year, 3 well respected and experienced National managers quit the company to work with competitors. According to the survey conducted, the employees viewed their supervisors with a touch of fear. They believed managers were obsessed with profits and didn’t care about the worker. They also expressed that the friendly atmosphere was replaced by aggressive internal competition.

Do you agree or disagree with this thread and why or why not?

Answer 1

As far as the business is concerned I agree with this thread because the results show the profit was increased, the revenue was increased and the company was doing well in the business, but this is not the way any organization should function, the company should realize that the biggest assets for any organization is the employees and adequate respect should be given to those employees. In this thread it is clearly mentioned that low performing employees were rebuked in front of the office colleagues which is a big demotivation for any employee and hence the turnover increased, increased attrition degrades the image of the company in the market in the long run. Hence a company having a healthy working environment would always flourish in the market whereas a company which is only into money making business would fall hard in the long run.