ODD Presentation

Apr 10, 2023 TOLANI INSTITUTE OF MANAGEMENT STUDIES

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GIST OF THE CASE


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Current Situation

• Company is engaging in Nickel refining • It also produces copper, cobalt, and ammonia

sulfate.• Its parent comp any is International Metals Inc.• GSM created before 10 years by IMI and GSM has

been in operation now for 8 years.• IMI expected GSM to lose money the first 2 years

operation after that it was expected to be highly profitable.


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Cont…

• In fact GSM has not shown a profit, losing $1 million last year

• This lose because of variety of factors and demand decrease for Nickel and Copper, the condition of equipment and labor problems.

• Another problem is price of substitute product is less

• As they have done 20 years contract so as per terms current price for Nickel and Copper the cost of raw material makes it very difficult to show a profit

Group Vice President

General Manager

Plant Manager

Director of Production Manager

Area Produc

tion Sups

Shift Sups

Director of engineering

Maintenance Manager

Area Superviso

rs

Shift Superviso

rs

Warehouse manager

Process Control Manag

er

Industrial

Engineer

Plant Engin

eer

Director of Administration

Accounting Manager

Data Processi

ng Supervi

sor

Purchasing

Supervisor

Shipping and

Receiving

Supervisor

Industrial Relations Manager

Safety Supervis

or

Industrial

Relations

Supervisor

Organization Structure


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Production Process

• Continues Process• 24 hours * 7 days in week• Process is monitored through the reading

Gauges & the analysis of samples testing • Process control department is responsible for

making adjustment in the process ensure quality and flow.


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Plant Environment

• Building & equipment are old and corroded• Atmosphere is not proper• Employee are not use safety equipment • Operators behavior are not proper


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Opportunity for OD

• Promoted plant manager to GM• IMI suggested for OD project at GSM• Poor management of former GM• Future of the plant depend upon new GM• IMI expect immediate Results• GM met some consultants for OD project• No one has had any training in Mgt.


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Diagnostic Activities & Information

• Interview with top plant managers• Interview with middle managers & Supervisors


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Interview with top plant managers

• Highly Autocratic• Major problem is management style of top

plant managers• Plant could be more productive if positions

matched authority and responsibility• Poor maintenance


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Cont.

• Cost of Material is too high• Middle manager & supervisor are incapable

or unwilling for work• People are not doing their job.• Supervisor can't be trusted for decision

making• Equipment is a problem• Director of engineering could not maintain

his staff


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Cont.• Supervisor are totally intimidated by

manager & protecting themselves rather than correcting problem

• They have plenty of technical expertise but not utilized.

• Ignoring the resources• The reason of equipment breakdown is

unwillingness of operation to allow adequate maintenance of equipment.


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Interview with middle managers & Supervisors

• Not allowed to make decisions• Never given opportunity to contribute(well

trained and experienced)• Management does not communicate• Need to shut down for regular maintenance

(they don’t have right part of the right tool)• Lack of trust


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Interviews with the maintenance manager and supervisors

• They don’t provide the maintenance cost regularly

• This equipment is so old• We can save this place if management will let

us• The production supervisor are closer to the

operation than they are to their bosses.


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• The production operators are so angry at management ( damage the equipment or don’t report problems until they cause shutdown)


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QUESTIONS


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Q1:-

How would you summarize the diagnostic information? What are from your perspective, the key drivers of the issues at GSM?


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• Gulf States Metals is definitely in a dire need of change. The issues in this company are at all levels, from the machine operators to the General Manager

• Some of the issues that we felt were controllable and others were somewhat out of GSM’s hands.

• One of the uncontrollable issues was the drastic change in the market price of the metals being produced at this plant, due to the increased production of an inexpensive substitute.

• The only solution to this problem would be to get creative and think of a way to lower operating expenses.


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Major Key drivers

• Communication• Lack of Team Work• Lack of Training• Lack of Trust• Maintenance• Reactive rather than Proactive• Inter department conflict• Intra department conflict

Apr 10, 2023 20

Integrated approach to changeOD

Practitioner

Behavioral strategy

Change Attitude &

values

New Behaviors

Structural strategy

Change structure &

Design

New Relationships

Technological strategy

Change Production &

Methods

New Processes

Improved Performance


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Q2:-

what are the potential OD interventions that could be used here? What intervention makes the most sense to you & why?

Category Individual Team Intergroup Total Organizational System

Behavioral Laboratory Learning, Carrer planning, M.B.O

Team building, goal setting, Team work development

Intergroup development, T.Q.M

High performing system

Structural Job enrichment, M.B.O

Team building. Teamwork development

Goal setting , T.Q.M

Technological Intergroup development

OD intervention Strategies


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large group intervention• This is a system wide intervention that hopes to include all parties in

finding solutions to the company’s problem. • The way this one works is that it is a very large meeting with people from

every department and every representatives from every level of those departments come together to focus on certain issues that effect the organization as a whole.

• In GSM’s case it would be how to reduce operation expenses. Often times is this ends up being a 2-4 day conference that allows the employees to gather and “work together to identify and resolve organization wide problems, to design new approaches to structuring and managing the firm, or to propose future directions for the organization.

• Although in theory the large group intervention sounds very promising, with the nature of GSM’s 24 hour a day 7 days a week production schedule to acquire all those people at one time could be detrimental to the actual production of plant, so instead of helping the plant it may hinder it in the long run.


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organization confrontation meeting

• We think this because in the limited information that we have about this organization.

• We think that the lack of communication between all levels has held this company back immensely.

• If all the managers sat down and explained their thoughts and reasoning for them it would be easier to realize the actual issues at play.

• The way the confrontation meeting plays out is that it obviously starts with gathering all the key players of this business. Once everyone is together the communication lanes are pushed open.


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Q3:-

Provide an outline of your preferred intervention.


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• Strategies to resistence• Learning organization• MBO

Documents

ODD Presentation