Dyer smith Co is a larger manufacture of automobiles and off – road vehicles whose factory is surrounded by suppliers of
Posted: Wed Mar 30, 2022 3:44 pm
Dyer smith Co is a larger manufacture of automobiles and off – road vehicles whose factory
is surrounded by suppliers of the main materials required in final assembly, such as electrical
and electronic components, engines, seats and interior fittings. Dyer smith operates a just – in
– time system whereby all the parts are required as specific times on the assembly of the
vehicles, as there is no intermediate or ‘buffer’ stock. For this reason, HR Factors are very
important to Dyer smith, and it attempts to gain employee commitment in various ways, by
calling its employees ‘associates’ having stranded uniforms which all levels of associate wear
– even managers – and by having the same terms and coordinates of employment of all
associates. Most associates are paid a rate for a job, which increase with service. Salaries are
paid monthly and services increments are complemented by and end of year bonus of up to
30 per cent of salary, which is based on the company’s past performance. This is because
Dyer smith believes performance of individual targets and rewards. Teamwork is an ideal
which Dyer smith tries to promote throughout. It uses involvement and participation schemes
as well as an associate council to further cement relationships between the company and all
of its employees. Because of its excellent policies and its growth over the years, Dyer smith
has a very low staff turnover rate, often due more to retirements, deaths or family crises than
deliberate resignations. Most employees were taken on during the 1970s and 1980s as the
factory expanded. They were in their 20s then, so are now approaching middle age. The
environment is beginning to change and Dyer smith is facing severe competition on the price
and the features of its vehicles. In order to react, it needs to increase quality, reduce costs,
and enable swift reaction to change in customer preferences such as the color of the vehicle,
or extras such as automatic transmission, tinted wind screens and interior fittings. This is not
possible at present as associates work in specific areas based on one single operation such as
rear axle assembly or interior fitting. This approach was invaluable in the past at it cemented
internal relationships, reduced absenteeism and sickness and enable skills to be easily
updated by on – the – job training, Because of this, associates did not usually transfer from ill
area to area, expect in emergency. Dyer smith wishes to introduce changes in its working
practices to introduce the idea of flexible ‘autonomous working groups’, or task – teams.
This proposal has met with some resistance from the associate council which it formed to
give associates a voice in decisions. The council is concerned that now that many associates
are much older than when they started work at dyer smith, they may not be able to learn new
skills and transfer easily from one area to another. The council is representing its associate’s
interests as it should, but dyer smith is concerned that its business is becoming so reliant on
reacting to change that the notion of lifetime employment might become counter –
productive. It has investigated using the local suppliers’ employees as sub contracted labor
(as they know the product and the company’s standards) so as to replace those retiring with
temporary workers rather than recruit permanent.
Required:
a. Discuss how the implementation of change could be achieved by Dyer smith.
b.discuss how Dyer smith can remove barriers to change
is surrounded by suppliers of the main materials required in final assembly, such as electrical
and electronic components, engines, seats and interior fittings. Dyer smith operates a just – in
– time system whereby all the parts are required as specific times on the assembly of the
vehicles, as there is no intermediate or ‘buffer’ stock. For this reason, HR Factors are very
important to Dyer smith, and it attempts to gain employee commitment in various ways, by
calling its employees ‘associates’ having stranded uniforms which all levels of associate wear
– even managers – and by having the same terms and coordinates of employment of all
associates. Most associates are paid a rate for a job, which increase with service. Salaries are
paid monthly and services increments are complemented by and end of year bonus of up to
30 per cent of salary, which is based on the company’s past performance. This is because
Dyer smith believes performance of individual targets and rewards. Teamwork is an ideal
which Dyer smith tries to promote throughout. It uses involvement and participation schemes
as well as an associate council to further cement relationships between the company and all
of its employees. Because of its excellent policies and its growth over the years, Dyer smith
has a very low staff turnover rate, often due more to retirements, deaths or family crises than
deliberate resignations. Most employees were taken on during the 1970s and 1980s as the
factory expanded. They were in their 20s then, so are now approaching middle age. The
environment is beginning to change and Dyer smith is facing severe competition on the price
and the features of its vehicles. In order to react, it needs to increase quality, reduce costs,
and enable swift reaction to change in customer preferences such as the color of the vehicle,
or extras such as automatic transmission, tinted wind screens and interior fittings. This is not
possible at present as associates work in specific areas based on one single operation such as
rear axle assembly or interior fitting. This approach was invaluable in the past at it cemented
internal relationships, reduced absenteeism and sickness and enable skills to be easily
updated by on – the – job training, Because of this, associates did not usually transfer from ill
area to area, expect in emergency. Dyer smith wishes to introduce changes in its working
practices to introduce the idea of flexible ‘autonomous working groups’, or task – teams.
This proposal has met with some resistance from the associate council which it formed to
give associates a voice in decisions. The council is concerned that now that many associates
are much older than when they started work at dyer smith, they may not be able to learn new
skills and transfer easily from one area to another. The council is representing its associate’s
interests as it should, but dyer smith is concerned that its business is becoming so reliant on
reacting to change that the notion of lifetime employment might become counter –
productive. It has investigated using the local suppliers’ employees as sub contracted labor
(as they know the product and the company’s standards) so as to replace those retiring with
temporary workers rather than recruit permanent.
Required:
a. Discuss how the implementation of change could be achieved by Dyer smith.
b.discuss how Dyer smith can remove barriers to change