Assignment

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CHAPTER CASE – 10

Course Title: Organizational Behavior

Course Code: MKT 225
Batch: 16th

Submitted To: Submitted By:

Dr. Shahidul Islam Abdullah Al Mamun
Instructor of Organizational ID - 12207004
Behavior
Mahbub Hasan
Associate Professor
ID - 12207027
Department of Marketing
Department of Marketing
Comilla University
Comilla University

25th December 2024

DEPARTMENT OF MARKETING
COMILLA UNIVERSITY
Table of Contents

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 Contents Page No

Introduction 3

Background and Challenges in Section 10 3

Transition to Patterson and Key Changes 4

4
Results and Success Factors
5
Analysis Through Leadership Models
Motivational Framework: Herzberg’s Two- 5
Factor Model
The Role of Informal Organization 6

Challenges and Managerial Perceptions 6

Lessons Learned 7

Conclution 7

References 8

Case Study

on
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 Success and Dynamics of the Patterson Operation.

Introduction

Carrington, Inc., an international leader in the pharmaceuticals and cosmetics industries,

encountered significant challenges in its Midsouth plant, particularly in Section 10. Section
10 was responsible for assembling promotional prepaks, but its performance was marred by
low productivity, high turnover, and poor morale. A shift in operations to the Patterson
facility led to transformative changes in leadership, employee involvement, and operational
outcomes. This paper explores the success of the Patterson operation by evaluating its
dynamics through organizational behavior frameworks and leadership models.

Background and Challenges in Section 10

Section 10 was characterized by poor productivity, frequent grievances, and high turnover
rates. Key issues included:

1. Low Productivity and Morale: Employees struggled to meet work standards and earn
bonuses under the company’s incentive plan.

2. Skill Development Barriers: Workers were frequently reassigned, preventing proficiency in

specific tasks.

3. Lack of Cooperation: A “that’s not my job” attitude and frequent grievances highlighted
the absence of teamwork.

These challenges necessitated changes, leading to the relocation of operations to the Patterson
facility.

Transition to Patterson and Key Changes

The relocation to Patterson marked a turning point. Despite suboptimal working conditions—
such as poor ventilation and extreme temperatures—the facility experienced a remarkable

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improvement in performance. Fred Hammond, the first supervisor at Patterson, implemented
the following key changes:

1. Task Specialization: Employees focused on one task at a time, developing speed and
earning bonuses.

2. Participative Decision-Making: Workers contributed to decisions regarding work hours and

break times.

3. Flexibility in Workplace Rules: Relaxed dress codes and the inclusion of music created a
more welcoming environment.

4. Employee Ownership: Workers were encouraged to create and improve their break area,
fostering a sense of belonging.

Results and Success Factors

The Patterson operation achieved a 32.8% improvement in productivity, exceeding

expectations. Employees began earning bonuses, morale improved significantly, and
grievances were minimal. Key factors contributing to success included:

1. Employee Involvement: Participation in decision-making empowered workers and

enhanced engagement.

2. Leadership Style: Both Fred Hammond and May Allison embraced participative
management, prioritizing employee input and fostering trust.

3. Team Spirit: Workers formed a cohesive unit, developing a strong esprit de corps and
informal social structures that reinforced cooperation.

4. Motivational Practices: Clear and attainable goals enabled employees to achieve bonuses,
fulfilling intrinsic and extrinsic needs.

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Analysis Through Leadership Models

1. Fiedler’s Contingency Model:

Fred Hammond’s task-oriented approach was effective during the initial transition, where a
structured environment was needed to address low productivity.

May Allison’s relationship-oriented style thrived in the more stable, mature Patterson
environment, maintaining high morale and autonomy.

2. Hersey-Blanchard Situational Leadership Model:

Hammond initially adopted a directive style to guide inexperienced workers. As employees

became more competent, a participative style emerged, aligning with the workers’ growing
maturity.

Motivational Framework: Herzberg’s Two-Factor Model

Herzberg’s model explains why deteriorated hygiene factors at Patterson (e.g., poor physical
conditions) did not negatively impact productivity. While hygiene factors prevent
dissatisfaction, they do not motivate employees. The true drivers of Patterson’s success were
motivators, such as:

1. Achievement: Workers could meet standards and earn bonuses, leading to a sense of
accomplishment.

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2. Recognition and Responsibility: Employees were valued for their contributions and
encouraged to take ownership of their workspace.

3. Autonomy: Decision-making participation satisfied employees’ intrinsic needs for

involvement and growth.

The Role of Informal Organization

Patterson’s informal organization played a pivotal role in fostering a sense of “family” among
employees. This was evident in:

1. Social Networks: Workers formed bonds that enhanced cooperation and productivity.

2. Shared Identity: Employees collectively improved their break area and established a
softball team, creating a unique “company culture.”

3. Informal Leadership: Natural leaders emerged to resolve conflicts and motivate peers,
supplementing formal management.

Challenges and Managerial Perceptions

Despite Patterson’s success, its deviation from corporate norms drew mixed reactions from
Carrington’s management. Some viewed Patterson as a model of innovation, while others
were critical of its informal structures and autonomy. These critiques underscore the tension
between traditional corporate practices and adaptive, participative management approaches.

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Lessons Learned

The Patterson operation highlights several key takeaways for organizational success:

1. Adapt Leadership to Context: Effective leaders, like Hammond and Allison, adapt their
styles to the situation and employee maturity.

2. Empower Employees: Involvement in decision-making enhances motivation, ownership,

and productivity.

3. Prioritize Motivators Over Hygiene Factors: Recognition, achievement, and responsibility

drive long-term performance.

4. Leverage Informal Organizations: Social networks and shared identities can complement
formal management to build cohesive teams.

Conclusion

The Patterson operation demonstrates the transformative power of participative leadership

and employee involvement in addressing organizational challenges. By empowering workers,
adapting leadership styles, and fostering a sense of ownership, Patterson exceeded
expectations despite suboptimal physical conditions. This case serves as a valuable blueprint
for organizations seeking to balance productivity and employee satisfaction in dynamic
environments.

References:

Case Study: "The Patterson Operation" (Organizational Behavior by John W. Newstrom).

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Herzberg, F. (1968). One More Time: How Do You Motivate Employees? Harvard Business
Review.

Fiedler, F. E. (1967). A Theory of Leadership Effectiveness.

Hersey, P., & Blanchard, K. H. (1977). Management of Organizational Behavior.