Case Study for Management
Case Studies of Management
Indiana Wesleyan University
Steven Thompson
Ron Edens approach to managing his employees at Electronic Banking Systems Inc. is by rendering them almost inhuman. Edens believes that to maximize production control is the definitive need. Each of his employees performs a strict regiment and is constantly monitored to maintain the discipline he desires. While he is not incorrect that setting specific standards have rewarded him with current satisfactory production rates, he does not have satisfied employees. This will eventually result in large turnover and additional training costs. Many of these jobs require minimal skill so he does have limited training to contend with, but any turnover issues can cripple a company who has such high output expectations. The employees that do stick with the company have no investment in the company’s welfare, but are driven by their own financial needs. This is a strong factor in any area where unemployment is high, but most people can only keep up this kind of strenuous work for a short period. The article did not go into great detail about Edens turnover rate, but from the complaints of employees cited in the article it is apparent. Edens lack of concern for his employees welfare is quite shocking to me. Just something as simple as a drink of water is an un-allowed disruption to their day. It is not only that their health is not taken into consideration, but also that Edens actions oppose any regard for his workers as humans. I completely understand his rule about no talking as stringent as it may be. Many companies could be much more efficient if there were not such long talks at the water cooler. Yet, the psychological effects that seem to be fostered by the need to turn man into machine should not be overlooked. Giving employees a sense of calm by having their children’s pictures at their desk, or letting them see that the weather is good or bad. These are things that keep us connected
Indiana Wesleyan University
Steven Thompson
Ron Edens approach to managing his employees at Electronic Banking Systems Inc. is by rendering them almost inhuman. Edens believes that to maximize production control is the definitive need. Each of his employees performs a strict regiment and is constantly monitored to maintain the discipline he desires. While he is not incorrect that setting specific standards have rewarded him with current satisfactory production rates, he does not have satisfied employees. This will eventually result in large turnover and additional training costs. Many of these jobs require minimal skill so he does have limited training to contend with, but any turnover issues can cripple a company who has such high output expectations. The employees that do stick with the company have no investment in the company’s welfare, but are driven by their own financial needs. This is a strong factor in any area where unemployment is high, but most people can only keep up this kind of strenuous work for a short period. The article did not go into great detail about Edens turnover rate, but from the complaints of employees cited in the article it is apparent. Edens lack of concern for his employees welfare is quite shocking to me. Just something as simple as a drink of water is an un-allowed disruption to their day. It is not only that their health is not taken into consideration, but also that Edens actions oppose any regard for his workers as humans. I completely understand his rule about no talking as stringent as it may be. Many companies could be much more efficient if there were not such long talks at the water cooler. Yet, the psychological effects that seem to be fostered by the need to turn man into machine should not be overlooked. Giving employees a sense of calm by having their children’s pictures at their desk, or letting them see that the weather is good or bad. These are things that keep us connected