Walk Case 2 1

Michael J. Walk APPL 647: Training and Organization Development 5 September 2007

Case Study 2: NOGO Railroad

The case of NOGO railroad poses some serious issues and challenges for the new communication manager, Dave Keller. On the macro level, the organizational processes are out of date and obdurate. Because of prolific in-family hiring and promotions, the propensity for social loafing or even organized loafing is a major concern. The morale among workers is low; they seem to be quite satisfied with maintaining the status quo and doing as little as possible whenever possible.

The employees, and possibly even the management, seem to rely on antediluvian traditions rather than interacting with the continually changing environment. The entire organizational culture seems to be problematic.

Problems are also found on the micro-level, especially with the division manager, Yates. His refusal to back Keller’s change initiatives has left Keller weak and powerless to exact any type of productive change.

The causes of the extant problems in the company stem from a lack of perceived job importance, an organizational culture that prizes minimal performance only, and detrimental recruitment procedures (hiring family members to work with other family members).

The Structural System is affected by the inappropriate division of labor.

First, the clerks (mostly females) have one specialized job in a very limited area. Walk Case 2 2

The telegraph operators (mostly males) perform many tasks and can work almost anywhere if needed. But the actual processes executed within the two positions are technically quite similar. There are frequent times when there is not enough work to go around, and employees stand idly, absorbing organizational funds but contributing nothing to the company’s output.

The Psychosocial System is affected by the problems of nepotism on one hand and strict labor union loyalty on the other. The workers seem to lack any commitment or loyalty to the company itself; their fidelity lies with retaining their jobs. There is strong resistance to change and growth.

The Technical System is affected by some of the remaining antiquated techniques used to communicate between trains, dispatchers, and telegraph operators. Some of these techniques endanger human lives.

The Managerial System is affected by the lack of open managerial support for the needed organizational changes. Also, the various family-tie promotions and political issues are hampering organizational growth.

The Goals and Values System’s main issue is that it seems not to exist.

Whatever the goals and values of the organization may be, they are not readily apparent in the workers’ or the managers’ behaviors. The main goal and value of the employees seems to be comfortable equilibrium.

While this is a complex situation, there are several alternatives that could be implemented. First, a massive overhaul of the distribution of labor could be carried Walk Case 2 3

out. For example, the position of clerk and telegraph operator seems to be relatively the same. There seems to be no reason that cross-training could not be done to combine the two specializations into one position comprising of a more varied workforce with a broader range of capabilities. Also, the job of fireman seems to be completely unnecessary; an alternative position should be provided or the position eliminated. There are some other possible alternatives. First, update the technology used in the company not only to open new jobs in-house, but also to expedite the communication processes that are the main function of the communication department. Second, there seems to be a broad communication gap between management and subordinates—it may be beneficial to create an open forum and feedback procedure to assess and assist with organizational change procedures.

First and foremost, however, upper management needs to be openly on- board with the organizational research and possible changes. With a view to improving the long-term prospects of individual positions as well as the company as a whole, management should be intimately involved in assessing and improving the systems within the organization (including its own system). Presenting the case to management as an urgent need to revolutionize may perhaps win its support in implementing a change program. With management on his side, Keller may be able to gather the needed information in the upcoming two years and then present the case to the labor unions to make the necessary changes in the organizational structure.