The Nogo Railroad

The NoGo Railroad I. Problems A. Macro 1. Union problems need to be addressed at corporate level. 2. Massive changes are needed in personnel policies that can only be accomplished through intensive union and executive sessions. 3. This organization may not survive the needed changes. There may not be time for organization development to be used and the revolutionary method—organization transformation—may be too radical. 4. Changes may not be allowed by management at this time. Change is inevitable and the longer that NoGo waits, the more radical those changes will be.

B. Micro 1. Dave Keller is in a no-win situation. 2. The only hope Dave has of making all the needed changes would be to accomplish the needed changes over a long period of time with empowerment and support from top management. 3. In the short term, Dave can attempt to gain employee support. Because the union is so strong, it is doubtful that he can obtain much support. II. Causes 1. Union stronghold. 2. Company has been reacting to changes instead of proactively forecasting changes. 3.

Management is not cohesive; they do not share information, support, or resources with employers and lower-level managers. III. Systems affected 1. Structural – job descriptions and the formal structure are very rigid, largely because of years of practice. 2. Psychosocial – Dave is very unsure of the security of his position and suspects he is being set up. Other employees, including some in management, want to preserve the status quo. 3. Technical – the technology has change through the years but the organization has failed to recognize the change.

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As evidence is the archaic job titles (fireman) and job descriptions. 4. Managerial – virtually no support from management for Dave to make changes. Management seems to be as much of the problem as unionized employees. Everyone seems to want to protect his or her turf. 5. Goals and values – though “status quo” is actually not a value, it never-the-less is what employees in many cases value. Their goal is not to change. IV. Alternatives 1. Dave can forge on ahead and suggest changes as he sees them.

If top management does not begin to press for changes, the organization will probably cease to exist. 2. Management needs to consider what they will offer to unions prior to the next contract in order to make the following changes. a. Positions need to be eliminated. b. Positions need to be combined. c. Featherbedding and nepotism need to be eliminated from all levels of the organization. 3. Some proposed “carrots”: a. Management reduces unnecessary managerial and corporate staff as well as union positions. . The Board of Directors ties future management and union pay raises together. Pay increases will also be tied to productivity and profits. 4. Management should consider confrontation with union. a. This alternative needs to be carefully considered. b. There would be the possibility of violent confrontations. c. There will be many legal ramifications and expenses incurred by both sides. d. Even if the company is successful in obtaining concessions from the union, the company may have future problems.

In unpopulated areas such as Montana, Idaho, and Washington, future employees will probably have ties to former union railroad employees. V. Recommendations Dave should attempt to make the necessary changes for NoGo to become a healthy organization. Unless he is able to live with the old corporate culture, he will not be effective. When Dave is “fed up,” he will probably resign. Hopefully before that point, the company’s top management will become supportive of the needed change programs. Meanwhile, Dave needs to be realistic about his future and keep his resume up to date.

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