Abstract:
In Part A, management of a federal claims processing division decides to restructure the operation in order to promote employee morale and efficiency. Organizational restructuring is based on the concept of "semi-autonomous task teams," popularized by Volvo. The advantages and disadvantages of such a practice can be fully discussed as students are asked to analyze the results of management's decision. In addition to hard analysis of job enrichment and improved performance, the case provides an opportunity to explore the importance of unions and administrative logistics in organizational change. The role of "overhead" functions and their impact on the management of people are also discussed. In Part B, having experienced some success with the job enrichment program, management begins planning an incentive pay system based on the productivity of the task teams. The case examines the plans for this system, as well as the planning process, and leaves students to decide whether the plans adequately address the effects on employee behavior and productivity and whether the organization can accommodate so much change at once.
