Asian Motor Ltd. Case Study

Asian Motor Ltd. is an automobile spare part company. It has been in existence for 6 decades. It serves the needs of their major customers (majorly focused on 3 companies) by giving product delivery time to time and goods with good quality. To achieve this status, Asian motors had to walk a long history as they are well known for its timely delivery and good quality goods. Initially, the main reason for the companys success was due to its dedicated, hardworking and veteran employees. Most of the employees have worked for more than three to four decades at this company. It is said that people who join the organization will leave the organization as a retired person only. The turnover ratio is very low in Asian Motor Ltd. due to on-the-job satisfaction and job security provided by Asian Motor ltd management.

However, during the last year the scenario has changed. A number of competitors entered the market. Each competitor was now well equipped with all the modern to increase productivity and product quality. Two amongst the major three of Asian Motors customers who applied for Standards like TQM ISO started to pressure the company to adapt to modern technology as a part of their Standards process. They further emphasized that they wanted goods that were now manufactured through modern machineries.

The management was fully aware that to sustain their business and regain market share, they had to implement transformational change strategies. Furthermore, Management heard their customers complaints and decided acquire new machines and adopt to all required modern technologies. They allocated millions of dollars towards this process and also solicited the services of renowned OD consultant, Mr Browne to help with the the issues of adopting and implementing new technologies. He then compiled a report. However, in his report he stated that the current employees are the major issue since they were not trained to operate the new technologies and equipment that modern plant required. Additionally, the reasons stated based on a survey conducted, by him were:-

a) Very old employees who are not comfortable in adopting the new system.

b) 80% of the employee show less interest towards training due to their age.

c) It is not advisable and wont be fruitful to invest in the training and development on those employees ( 40% ) who are going to retire in less than 5 years.

This started a pressure in the minds of the employees about their job security. The union leader quoted in front of management that, The place which we felt was our organization and will never let us go because of our work ethics and value has now become a question mark in front of us. The management assured him that we will never commit such things which will put the employees in loss. There will be no question of job security here. And we all together will create a modern plant equipped with latest technology at Asian motors. Our company is ready for that.

Case Study Questions

1. Over the period of six decades, how was the company able to maintain its competitive advantage?

2. What is age diversity in the work place?

3. Should the company embrace its Aging workforce? Justify your answer