warehouse management case study

“Elements of Management”

Case Study: Introduction of Computerized Warehouse Technology

Zoi E. Fountzoula

Nick T. Nanas

Aneza A. Pantaleon

John N. Skianis

Peter J. Stavroulakis

Introductory Presentation of the Case Study

Spare parts warehouse of a manufacturer of heavy equipment

Until recently the warehouse was working manually

Managers decide to install a fully automatic and computerized

system in order to increase productivity

The system is expected to:

• Minimize waste• Optimize resources• Save time• Save money

What happened:

First month productivity increased more than 100% (as expected)

The operator's work became easier and safer

No worker had been redundant, however on the contrary salaries had increased

But at the third month after the implementation of the system:

Errors start creeping into the system

Absenteeism became a daily phenomenon

Examples of what appear to be sabotage

The automatic system appeared to be less efficient than the old manual

system

•A big investment eventually seemed not to be viable

•Workers seem to lack synergy with the system

•Productivity instead of increasing, eventually decreased

Since the system has been widely accepted by industry and simultaneously was performing

properly at the beginning of its implementation, it cannot be accused for the

damages

“Deliberate absenteeism is typically an intentional act in which the employee

rejects a given work situation”

This fact, in addition to the situation in which the employees were not given adequate information about the eminent changes in their work reality, the hint that the number of workers and machinery will diminish (along with the evidence of sabotage) lead us to believe that the system is being ...

...sabotaged

With the underlying causes:

Fear of redundancy Powerlessness Fast change in work

processes that created psychological imbalance in employees

Inefficient training and information about the new system

Leading to OMB Type D:

• Damaging, destructive and/or disparaging behavior committed intentionally

Solutions

1. Management has to assume responsibility for the lack of informing employees and take preventive action against similar instances in the future

2. Management has to inform employees about the changes in their work situation, to reassure them that their jobs are not at stake, and that the new system is not an

enemy

3. Improve the efficiency of communication between the company and the union in order to avoid misunderstandings and

communication failures

4. Perform an inquiry in order to identify deviant or potentially dangerous behavior of staff (managers and

employees) in the future

Thank you for your attention!