Hovey and Beard Case
Running head: THE HOVEY AND BEARD COMPANY CASE 1
The Hovey and Beard Company Case
Rosine Sarafian
University of Redlands
The Hovey and Beard Company Case
A company’s success is measured by evaluating different variables, including, but not limited to production levels, revenues, retention of its employees, etc. While these quantitative and macro assessments measure results and help set the company’s future objectives, we cannot ignore the human factor, which is an integral component contributing to the success and longevity of a company. For the purpose of the Hovey and Beard Company case analysis, the human factor will be analyzed in terms of the correlation between job conditions, job satisfaction and performance, and the effect of this triangle on company’s growth and failure. Driven by an increase in demand for toys, the Hovey and Beard Company’s decision to implement an operational change and introduce a new method of painting toys through an assembly line resulted in a multi-layered shift of job satisfaction and performance over time. Painters were first given a monetary incentive to learn new skills and an opportunity to earn additional bonus, if they exceeded the productivity quota. While the management was considerate in trying to adapt an incentive-based learning method and provide the opportunity for the painters to earn a bonus if they exceeded the production quota, the fact remained that there was a basic failure on their part to include the painters in the decision making process. The management acted unilaterally without the input of the employees whose practical and technical expertise could have been valuable in determining the best course of change. Ivancevich et al. (2011) pointed out that “the more involved people at all levels of the hierarchy are in the change planning, implementation, and monitoring, the higher the likelihood of success” (p. 522). In their
The Hovey and Beard Company Case
Rosine Sarafian
University of Redlands
The Hovey and Beard Company Case
A company’s success is measured by evaluating different variables, including, but not limited to production levels, revenues, retention of its employees, etc. While these quantitative and macro assessments measure results and help set the company’s future objectives, we cannot ignore the human factor, which is an integral component contributing to the success and longevity of a company. For the purpose of the Hovey and Beard Company case analysis, the human factor will be analyzed in terms of the correlation between job conditions, job satisfaction and performance, and the effect of this triangle on company’s growth and failure. Driven by an increase in demand for toys, the Hovey and Beard Company’s decision to implement an operational change and introduce a new method of painting toys through an assembly line resulted in a multi-layered shift of job satisfaction and performance over time. Painters were first given a monetary incentive to learn new skills and an opportunity to earn additional bonus, if they exceeded the productivity quota. While the management was considerate in trying to adapt an incentive-based learning method and provide the opportunity for the painters to earn a bonus if they exceeded the production quota, the fact remained that there was a basic failure on their part to include the painters in the decision making process. The management acted unilaterally without the input of the employees whose practical and technical expertise could have been valuable in determining the best course of change. Ivancevich et al. (2011) pointed out that “the more involved people at all levels of the hierarchy are in the change planning, implementation, and monitoring, the higher the likelihood of success” (p. 522). In their
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