Rhegina Mariztelle B Forte

STMicroelectronics

I. Background

a. It must include a brief summary of the organizational issue.

STMicroelectronics is one of the world’s largest semiconductor companies around the globe. Offering
one of the industry’s broadest product portfolios, STMicroelectronics serves customers across the
spectrum of electronics applications with innovative semiconductor solutions by leveraging its vast array
of technologies, design expertise, and combination of intellectual property portfolio, strategic
partnerships, and manufacturing strength. The company’s world-class products and technologies serve
to deliver compelling multimedia experiences to consumers anytime, anywhere – in the home, in the
car, and on the go. In addition, the company also aims to increase energy efficiency along the energy
chain, from power generation to distribution and consumption. They provide all aspects of data security
and protection by enabling various types of applications that cater to their local and international
market. Indeed, microelectronics make a positive and innovative contribution to people’s lives.

II. Statement of the Problem

a. What type of leadership style should STMicroelectronics employ in order to abolish
the resistance of the employees to the change initiatives of the company? (Refer to
Page 1 of 06 Handout 1.)

There are two (2) leadership mentioned in the above case, namely Directive and Dictatorial Leadership.
The Directive Leadership style is a leadership style where all the power is with the leader. It is highly
centralized and undivided. Its adherents prefer giving commands and directives because they are
unwilling to take any suggestions from those under them. This style is characterized by leaders making
decisions for others and expecting followers to follow instructions. The directive leader is skillful at
giving instructions, setting expectations, and establishing timelines and performance standards. While
Dictatorial Leadership, known also as Authoritarian, or Dictator Leadership. An authoritarian leader
rules with total power. This style offers no opportunity for participant input; the leader makes all the
decisions, critical knowledge is kept to themselves and they lay down the law. This often characterized
by some of the following; suspension of elections and civil liberties; proclamation of a state of
emergency; rule by decree; repression of political opponents; not abiding by the rule of law
procedures, and cult of personality.

b. What type of total quality tool/continuous improvement method should

STMicroelectronics use in order to gain insights from their internal and external
stakeholders? (Refer to Pages 1-14 of 09 Handout 1.)
Since problems arises mostly on Management leadership, I would suggest to use a continuous
improvement tools known as Kaizen approach. It’s a strategy where employees at all levels of a
company work together proactively to achieve regular, incremental improvements to the
manufacturing process. In a sense, it combines the collective talents within a company to create a
powerful engine for improvement. Each members of the organization plays an important role in the
implementation of Kaizen as follows; (1) Role of Executives Management (2) Role of Middle Managers
(3) Role of Supervisors (4) Role of employees.

c. How can ISO 9000 contribute in the overall improvement of STMicroelectronics’

organizational performance? (Refer to Page 1 of 11 Handout 1.)

ISO 9000 is a set of international standards of quality management that have become increasingly
popular for large and small companies The involvement of people was identified as critical for the
successful implementation and operation of a quality management system. Especially important is
involvement of all employees in the quality work, which can be achieved through training and
empowerment. Vital is also the commitment of top management and a dedicated and knowledgeable
quality manager or facilitator.

III. Areas of Consideration

a. It must include details and facts from the case that contribute to the organizational
problem of the company.

The following are STMicroelectronics stated problems;

 Most of the employees complain about the leadership style of the top management; all the
employees can agree that the management is directive and dictatorial.
 Leaders, particularly the supervisors, are not open to suggestions that will help improve the
operations of the business. They only provide orders and expect that the factory workers will
comply obediently to their commands.
 This issue has resulted to a major protest on the side of the workers. The workers were able to
establish a personal resistance to the change initiatives that are being imposed by the
management resulting to decline in production and overall efficiency towards product quality
of the company.
 The Management has been blind sighted by the artificial growth of their organization that they
have failed to consider the feedback of their external and internal stakeholders.
 IV. Alternative Courses of Action
a. It must contain at least (2) two courses of action for every point stated in the
statement of the problem. It must also present the advantages and disadvantages of
each course of action in resolving the organizational problem.

  PROBLEMS STATED ADVANTAGES DISADVANTAGES

1 Most of the employees Decision concentrated and Narrow advantage for the
complain about the given by Top Management employees
leadership style of the top
management; all the
employees can agree that
the management is
directive and dictatorial

2 Leaders, particularly the Top Management play vital Workers feel unmotivated
supervisors, are not open to role in the company for the procedure in the
suggestions that will help company
improve the operations of
the business. They only
provide orders and expect
that the factory workers will
comply obediently to their
commands

3 This issue has resulted to a Top Management power Workers resistance to work
major protest on the side of overruled which affect company
the workers. The workers production
were able to establish a
personal resistance to the
change initiatives that are
being imposed by the
management resulting to
decline in production and
overall efficiency towards
product quality of the
company

4 The Management has been Management had been Growth of company and
blind sighted by the artificial blinded for the organization members are falling down
growth of their organization
that they have failed to
consider the feedback of
their external and internal
stakeholders
 V. Recommendation
a. It must present the best course of action among the presented alternatives in
resolving each organizational problem.

ISO 9000 had been adopted by more than 100 nations as their national quality management/quality
assurance standard by the end of 1997. The standards specify how management operations shall be
conducted. Owners and managers do not have an adequate understanding of the ISO 9000
certification process or of the quality standards themselves. Some business owners have been known
to direct their company's resources toward ISO 9000 registration, only to find that their incomplete
understanding of the process and its requirements results in wasted time and effort. Benefits which
can impact nearly all corners of a company, range from increased stature to bottom-line operational
savings. The ISO 9000 certification process's emphasis on self-analysis and operations management
issues encourages various internal areas or departments of companies to interact with one another in
hopes of gaining a more complete understanding of the needs and desires of their internal customers.
Mostly it will help and upgraded the standard Management dealing process in the company same goes
with their subordinates and employees.

VI. Management Lessons Learned

a. It must discuss the takeaways from the case and the relevant things that the
company should do or not do in order to avoid the given organizational problems.

The relationship between your managers and your employees is key to maintaining a productive and
efficient workplace. Manager and employee relations is an important aspect of day-to-day business
operations. Poor relationships in the workplace can directly impact employee performance and
retention Employee relationship management describes an organization's ongoing effort to engage its
employees. This strategy helps maintain open communication in the workplace. Positive employer-
employee relationships in the office encourage productivity and collaboration among teams. When
there's a mutual level of respect between a manager and a worker, there's more willingness on both
ends to offer support and perform well. Relationship management helps maintain open communication
between employers and employees. It both motivates and rewards employees by showing them they
are appreciated for their work. Good leadership is essential to a close, efficient team. Relationship
management both motivates and rewards employees, making them feel appreciated for the work they
do. Besides improving employee retention, it also empowers workers to take risks, set professional goals
and find purpose in their work.