Human Resources Case Study
“SURESH – THE EXPERIENCED SUPERVISOR”
Regions manufacturing Ltd is a multinational company which produces high quality computer spare parts. In its corporate life span of 30 plus years the company had gained a reputation for holding on to its employees, and thus a high sense of job security prevailed. Throughout all those years, the company had never laid off any employees, even in times of great change and restructuring.
In the last two years, the downturn in the industry had resulted in the closure of many manufacturing plants in the USA and Europe, as high production costs rendered the goods no longer competitive in the global market. Regions Manufacturing Ltd plant in Sri Lanka now faces a similar challenge and must seek a way to remain competitive in the market in order to survive. A sustainability analysis revealed that employee productivity is a key area highlighted for requiring major changes. The changes necessary involved not only adherence to key performance indicators, but heightening monitoring, “double-hatting”, as well as internal re-alignments. This means that old established work-teams now experience different supervisors and pressures.
As expected the strong Union has initiated resistances to all changes as there is anticipation that the company will attempt to “manage out” poor performers who will most certainly be highlighted with the new systems. The Union attitude has considerably hindered and slowed down the implementation of changes. Mr. Suresh Gunaweera is a senior supervisor in charge of the production output of machine number 1. He is an efficient and hard working Supervisor. The estimated production output of this machine is 150 units per day, which can be produced by 15 employees and the tolerance for rejects is less than 2%. The current output is 100 units per day which is produced by utilizing 25 employees. The reject levels are at 6%. No systematic time and motion studies are conducted in this factory. Suresh’s relationship with
Regions manufacturing Ltd is a multinational company which produces high quality computer spare parts. In its corporate life span of 30 plus years the company had gained a reputation for holding on to its employees, and thus a high sense of job security prevailed. Throughout all those years, the company had never laid off any employees, even in times of great change and restructuring.
In the last two years, the downturn in the industry had resulted in the closure of many manufacturing plants in the USA and Europe, as high production costs rendered the goods no longer competitive in the global market. Regions Manufacturing Ltd plant in Sri Lanka now faces a similar challenge and must seek a way to remain competitive in the market in order to survive. A sustainability analysis revealed that employee productivity is a key area highlighted for requiring major changes. The changes necessary involved not only adherence to key performance indicators, but heightening monitoring, “double-hatting”, as well as internal re-alignments. This means that old established work-teams now experience different supervisors and pressures.
As expected the strong Union has initiated resistances to all changes as there is anticipation that the company will attempt to “manage out” poor performers who will most certainly be highlighted with the new systems. The Union attitude has considerably hindered and slowed down the implementation of changes. Mr. Suresh Gunaweera is a senior supervisor in charge of the production output of machine number 1. He is an efficient and hard working Supervisor. The estimated production output of this machine is 150 units per day, which can be produced by 15 employees and the tolerance for rejects is less than 2%. The current output is 100 units per day which is produced by utilizing 25 employees. The reject levels are at 6%. No systematic time and motion studies are conducted in this factory. Suresh’s relationship with