Page 677 - Business Principles and Management

Chapter
25 Developing an Effective Organization

25.1 The Changing Organizational Environment

25.2 Managing Organizational Change

25.3 Career Development
25.4 Personal Career Planning

RE ALITY CHECK

The End of an Era

ames Lane had a good life. Since graduating from high school, he had
worked for Alliance Industries, a company that produced steel and steel
J Jproducts for the auto industry. In the 23 years of his employment, he had
enjoyed most workdays, had a great group of friends at the company, and
earned a comfortable living for his family. His career had progressed at
Alliance from a basic maintenance position to machine operator, and then
eight years ago to supervisor of machining. During that time he had com-
pleted a two-year degree in supervision and management at a community
college to be well prepared for his new job.
Like many companies, Alliance Industries was being challenged by com-
petition and changes in the auto industry such as the switch from steel to
other metals and plastics. Changes in technology required major invest-
ments in new equipment, and competition was forcing cost cutting. Alliance
was trying to develop new markets for its steel both in the United States and
abroad. But international competition was forcing steel prices down dra-
matically, making it difficult for the company to make money even when it
found new customers. Alliance was also interested in purchasing smaller
companies to expand the types of products it could offer its customers, in-
cluding newer composite materials that were stronger and lighter than steel.
But those companies were not interested in being part of an older company
that many viewed as slower to respond to the new business environment
and hampered by traditional management practices.
James now faced an important decision. Alliance was reducing its work-
force, eliminating many supervisory positions. The company offered James
the opportunity to go back to a machinist position, but it would require ad-
ditional training and a reduction in pay. James didn’t know how he would
be accepted if he went back to work with the people he had been supervis-
ing and if he would be happy with that work. If he chose not to accept the
job change, Alliance would provide career counseling and other services to
help him find another job, but there was no guarantee that there would be
a job for which he was qualified in his community.

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