A Case Study of Rattan Production in Aborlan Palawan
A Case Study of Rattan Production in Aborlan Palawan
A Case Study of Rattan Production in Aborlan Palawan
ADM 2336 N
Organizational Behaviour
University of Ottawa
The packaging team at Treetop Forest is experiencing many problems. Their productivity
is decreasing and affecting the rest of the departments negatively. The unsupervised employees
are slacking off, are not motivated and are adopting norms that are not fitted with the company.
Inventory costs and the risk of damaged stocks are also increasing. The quality of the appearance
of the finished products is also decreasing, resulting in a loss in the market share in the industry,
Social loafing is causing the decrease in productivity in the packaging team. This tendency to
withhold physical or intellectual effort when performing a group task[1] represents the slacking
behaviours of the employees in that department. The lack of supervision is also one of the main
causes of most of the problems stated. The groups cohesiveness is causing them to behave in
similar manners, as additive tasks, even though the behaviours adopted are not in line with the
norms of the rest of the company (taking longer breaks etc). Because this departments location
is further than all the other ones, the employees feel isolated and excluded from the company,
causing their lack in motivation. The groups poor performance is causing an overstock which
results in high inventory costs and risk of damaged stocks since they have to be stored outside
ultimately causing the poor appearance of the finished product which affects the buyers
decision. It can be assumed that it is a larger group due to the tasks that need to be performed,
which affects the group in many ways. In larger groups, friendships develop, participation
decreases and disengagement increases resulting in process loss: a group performance difficulty
indispensability. Doing this within the group would motivate the employees. Increase
performance feedback, so that employees will know how to improve themselves as well
Pros:
They would feel belonging to the company since they would know what the
2. To have a more structured environment, Treetop should hire and train a new supervisor
Pros:
This solution will decrease inventory costs and increase the production and quality of
levels
Cons:
The salary and training of this new employee will increase the companys costs.
3. To reduce the overtime costs, limits should be put on the amount of overtime hours an
employee is allowed to use, along with a deadline for a specific amount of products.
Pros:
Cons:
Because these goals are imposed, the employees may be reluctant to achieve them. To
avoid this situation, the goals could be discussed therefore increasing the probability
of their achievement.
Recommended Solution
It would be recommended to implant supervision since it is the main cause of all the problems
the company is faced with and because of the many effects it would have on the situation. The
group needs structure and a supervisor would therefore help resolve most problems.
Implemented Solution
unbalanced productivity. This would resolve part of the inventory costs problems. Upper
management should also put someone in charge of the packaging team. If costs of hiring a new
supervisor are too high, an existing supervisor could be given more shifts. Although hiring and
training costs are high, the company will benefit from this addition in the long-term. The new
supervisor would counteract the social loafing the company is experiencing. The supervisor
could be trained to focus on the motivation of his group (rewarding good performances etc). This
supervisor is also the one who should limit the employees to a certain amount of overtime hours
they are allowed to. The supervisor would reinforce the companys norms, eventually eliminating
the self-imposed ones in the group (longer breaks). The supervisor would also promote group
cohesiveness and a pleasant working environment. In the short term, upper management could
host a meeting or assembly between all departments to make them feel interrelated and important
to the company. This could be a great motivation for the employees. In the long term, group
evaluations could be necessary to measure the groups performance and to see if the actions
Johns,G, & Saks, A.M. (2008). Organizational Behaviour, 7th edition, Toronto: Addison-
[1]
Wesley-Longman.
Johns,G, & Saks, A.M. (2008). Organizational Behaviour, 7th edition, Toronto: Addison-
[2]
Wesley-Longman.