Many organizations were downsized during the recession of 2008-2009. Thousands of employeeshave been laid off in days. It was a matter of time that the whole organizations were dissolved andevery one was demanding bail out package from government. What more could be worse thosegovernments themselves were out of money and in fact governments were thinking how to bail outthemselves. It was chaos! Among one of them was Z-S Manufacturing.Z-S manufactures electronic tubes of television. Z-S was also feeling the heat of recession as itsoperating time was reduced by 60 % during this recession. It seems that they have no choice otherthan organizational restructuring which means laying off the employees. The news oforganizational restructuring has built the tension between labor and management. Employees havestopped working and the organization was facing continuous loss. The CEO, Mr. Bill, was againstthe restructuring and believed that employees were the assets of an organization rather than anexpense. Therefore, he came up with an innovative plan.He suggested a job sharing system, which later came to be called as “Switch Shift System”. Thissystem proposed to change the complete shift after some days. Some senior organization memberspredicted that this system could lead the organization towards even greater financial crisis.Nevertheless, Mr. Bill believed and respected the basic human principle (secure and respectablejob) would overcome the costs.Under the system, a team worked for four days, from 9:00 am to 9:00 pm and another team workedthe night shift for four days, from 9:00 pm to 9:00 am. After four days, another two teams will takeover two shifts and previous teams will have four days off. This means rest of 3 days and 1 day ofpaid training.Initially, employees opposed to the Switch Shift System because they thought that their wages willbe reduced because there will be no overtime. However, they accepted the system as situation gotworse.The Switch Shift System started to show positive results. There was a huge jump in the productivityof the employees. Employees who didn’t have time for long rest now they had enough time forcontinuous learning and development and all this was happening without halting the productionlines or firing any one. As a result of this system, profits were doubled from U.S. $342 million toU.S. $684 million. But, this system reduced working hours by 150 hours per year and salaries wereincreased by 8 %.
1) If this kind of system is so profitable and useful then why isn’t it more widely used?
2) What are the hazards that prevent such a system from implementation in a company?
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QUESTION # 1:
Instead of downsizing the CEO, Mr. Bill, strong-willed that restructuring is not solution of the problem and introduced a plan of job sharing system which later came to be called “Switch Shift System”. This system become more profitable for the firm but is not widely used system because it is useful and successful only in the period of recession or depression. In the period of recession most of the firms start downsizing and there is no opportunity of job in the market and there is risk of loss of job, so for the purpose of retaining his or her job employee work hard and efficiently in such system.
QUESTION # 2:
Due to minimum job hours, no one like to do more work for low wage or salary in normal or boom period. In a boom or normal period of business days employees got depressed from low wages and large amount of work and stat switching their jobs from one to another. They try their best to market them and earn more and more. “Switch Shift System” is minimum job hours, no any over time and very low amount of salaries and wages.