Effectiveness of Self Manage Teams in Levi Strauss & Co
Executive Summary
This case study reviews the effectiveness of self manage teams in Levi Strauss & Co. The self manage teams were not performing and was facing problems such as low morale, high overhead cost and decrease in efficiency. The problems were analysed to determine the causes. The causes were insufficient training; poor management commitment; unclear objectives; poor strategy and implementation plan.
Solutions were then brainstormed for the above causes, which are;
- Establish a comprehensive training program which is a critical component for successful self manage teams. The whole training cycle, encompassing the training needs analysis, the training program and training effectiveness, must be carried out.
- Establish specific, measurable, achievable, realistic and timely objectives to ensure alignment through out the organization.
- Develop proper and clear guidelines and best practices to govern the teams as they need to know the boundaries of their decision making. The guidelines must incorporate reward system reinforcing the nature of self managed teams.
The above solution will help the team morale and empower the teams to perform effectively to achieve the team and organization objectives.
Statement of Problem
Implementation of self managing teams (SMT) which resulted in the following problems;
- Deterioration of employee morale.
- Increase in labour and overhead cost by 25% during the first year of implementation.
- Decrease in efficiency (quantity of pants produced per hour worked) by 23%.
- Decrease in market share of men’s denim jeans in United States from 48% in 1990 to 26% in 1997.
Analysis of the cause of the problem
Levi Strauss & Co. implemented its SMT in 1992 with the intent of lower cost and increase productivity in order to remain competitive and keep their North America plants open.
Upon implementation SMTs, various problems affecting employee morale surfaced. The problems ranged from absenteeism to
This case study reviews the effectiveness of self manage teams in Levi Strauss & Co. The self manage teams were not performing and was facing problems such as low morale, high overhead cost and decrease in efficiency. The problems were analysed to determine the causes. The causes were insufficient training; poor management commitment; unclear objectives; poor strategy and implementation plan.
Solutions were then brainstormed for the above causes, which are;
- Establish a comprehensive training program which is a critical component for successful self manage teams. The whole training cycle, encompassing the training needs analysis, the training program and training effectiveness, must be carried out.
- Establish specific, measurable, achievable, realistic and timely objectives to ensure alignment through out the organization.
- Develop proper and clear guidelines and best practices to govern the teams as they need to know the boundaries of their decision making. The guidelines must incorporate reward system reinforcing the nature of self managed teams.
The above solution will help the team morale and empower the teams to perform effectively to achieve the team and organization objectives.
Statement of Problem
Implementation of self managing teams (SMT) which resulted in the following problems;
- Deterioration of employee morale.
- Increase in labour and overhead cost by 25% during the first year of implementation.
- Decrease in efficiency (quantity of pants produced per hour worked) by 23%.
- Decrease in market share of men’s denim jeans in United States from 48% in 1990 to 26% in 1997.
Analysis of the cause of the problem
Levi Strauss & Co. implemented its SMT in 1992 with the intent of lower cost and increase productivity in order to remain competitive and keep their North America plants open.
Upon implementation SMTs, various problems affecting employee morale surfaced. The problems ranged from absenteeism to