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TECHNICA Inc Case Study: A2 Test. 20% Technica Inc. is a small company that manufactures component parts for the shipping industry. For some years, it

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TECHNICA Inc Case Study: A2 Test. 20% Technica Inc. is a small company that manufactures component parts for the shipping industry. For some years, it has had a sound reputation for quality of service and consistent levels of supply. However, over recent months they have experienced several production issues which are seriously impacting the company. Problems include failing to meet delivery deadlines which ultimately disrupt the supply-chain and manufacturing processes in partner firms. They risk losing their largest contract if the problems are not resolved immediately. Recently, a significant mechanical flaw in a customer's steel-pressing plant resulted in infrastructure damage, down-time at the factory, and a number of very unhappy engineers. Technica was blamed directly for this flaw as it was their component parts which had collapsed. Technica was sued for damages, costing the company several hundred thousand dollars. Most worrying for the management team however, is the tarnished brand image of Technica as the incidence of customer complaints is on the increase. Management need to act. Technica's Managing Director (MD) believes that the poor performance is largely due to a drop in motivation amongst the workers. He has decided that rather than use strict 'role' guidelines to better monitor the employees and their work performance, he will instead allow for more on-the-floor decision-making power. lob rotation will be introduced to increase task variety, and job responsibilities will be shared between the employees in order to try to make their work more challenging and interesting. He is hoping that if more people are engaged in the various tasks, that a culture of collaboration will develop and employees will be happier and subsequentially more motivated. To boost the employees' morale and encourage personal goal setting, the MD has also decided to introduce the "Best Employee of the Month Award" with a framed certificate and Gift Voucher presented to the employee in recognition of their efforts. The MD hopes that some internal competition will further boost levels of employee motivation and ultimately, levels of production. The new policies were introduced, however, the outcomes have proved very disappointing. Productivity continues to decline, defective products are still appearing, Technica has not reclaimed its former reputation of being a sound and reliable supplier and worryingly, the staff turnover rate has increased. Urgent and immediate Changes are required. Where, how should management begin

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