Question

THE AUTOCRATIC MANAGER:
The plant manager of a paper mill has contacted your consulting firm to help diagnose why production has dropped in the last 18 months. Moreover, he wants a proposal from your firm on what can be done to turn things around. The partial organization chart indicates there are seven levels of management and the mill employs 410 people.
This mill is a key one in a company that has many mills located throughout the country. The manufacturing process goes through several stages before turning out finished products. The mill employs a relatively large number of engineers, and most managers have an engineering background. The mill is unionized.
The plant manager has four years to go to retirement and wants to leave the firm with a reputation as a “manager who achieves effective results.” He is a dynamic individual and has tended to use either an autocratic or a benevolent autocratic approach in man- aging. He took over the mill six years ago when production was low and a permissive management climate existed. He immediately shifted to a more autocratic management system, and for four years, production was high.  He is convinced that the reason for the current problem is that people at the foreman and supervisory level are not doing their jobs effectively. He thinks the solution is to develop detailed job descriptions for these positions and initiate a super- visor management development program that will teach the supervisors to get more work out of the unionized employees.
You suggest that interviews be conducted at different levels before making a diagnosis and developing a recommended plan of action. Below are the results of interviews discussing the question, “What problems are preventing this mill from reaching its potential effectiveness?”

RESULTS OF TOP MANAGEMENT INTERVIEWS
a. The problem is that we must get commitment from supervisors to management’s higher performance expectations.

b. The greatest concern is abdication of responsibility by supervisors. They fail to insist on top performance, and they tend to let employees do what they want. Once we get hourly people under control, we will see an improvement and increased production.

RESULTS OF MIDDLE MANAGEMENT INTERVIEWS
a. Overmanagement from the top level to the supervisory level and undermanagement from the supervisory level down.

b. Too many levels of management.

c. Bypassing of middle management to supervise employees directly.

d. Dictatorial system of management in mill.

e. Supervisors and foremen oversupervised.

f. Foremen not given enough authority. g. Fault-finding atmosphere in mill. h. Employees will not accept foreman’s job. i. Up and down communication problems.

RESULTS OF INTERVIEWS WITH FOREMEN
a. Inability to make decisions because authority is not delegated or is taken away.

b. If you do make a decision, you don’t get backing from your bosses. Example: Night supervisors have the ability to make 90 percent of the deci- sions the dayshift supervisors are required to consult someone else about.

c. Too much pressure and threats from above.

d. Constant criticism when we have equipment or people problems, but no praise when we run above standard.

e. Low morale and poor attitudes. People cover their tracks and have the attitude that “it’s everyone’s problem but mine.”

f. Communication problems, especially with higher management.

Answer below questions:

1. Why do you think the autocratic approach worked effectively for four years in this situation?
2. Diagnose the problems and/or issues facing this mill.
3. Develop a set of recommendations that you or your consulting team will present to the mill man ager. Include suggestions regarding his leadership style. (Role play the presentation, keeping in mind that the manager is paying your consulting fee.)

Answer 1

Answer to question no (1):

Autocratic approach:

The autocratic approach proved to be effective for four years in the given case, as the level of production of the paper mill was low at the time when the new plant manager joined the mill. The change in the management to an autocratic one made the employees increase their productivity.

The approach worked for four consecutive years as, during these four years, the effects of the rigid management dribbled down to employees and other foremen working in the mill. In due course, the primary responsibilities of the foremen were removed and the employees stopped considering their nature of work as authoritative anymore.

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Answer to question no (2):

Problems and/or issues facing this mill:

There is a communication gap between people at levels of management in the paper mill. One of the major reasons for so many issues in the mill is the prevalence of multiple levels in the management. As per the partial organization chart, the mill has altogether seven management levels operating above the employees. Based on the interviews, employees at all the levels have different expectations from one another that are not clearly communicated.

The foremen claim that they have no role in decision-making and even if they make a small decision, the same is not appreciated and encouraged by the supervisors. Moreover, there is a lot of pressure on them from the top management and they often face criticism for problems related to workforce and machinery. There is also a lack of proper flow of communication between the foremen and the top management.

On the contrary, the people at the top management feel that the foremen are giving up on their responsibilities and making employees do whatever they want to. They believe that foremen have failed to manage and this has been the key factor for low production.

Even the middle managers consider that there are too many needless management levels and that the foremen and supervisors are overly controlled and supervised. Moreover, the middle managers have also stated that employees do not agree to work in the role of foremen, which is a clear indication that they do not accept authority. This situation also contradicts the Acceptance Theory of Authority according to which acceptance of authority of the foremen by employees is necessary.

Conclusively, it can be said that as per the interviews with the middle managers, proper flow of communication and multiple management levels are the biggest problems the mill is currently facing.

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Answer to question no (3):

Recommendations:

As a consultant, I would firstly bring this to the new plant manager's knowledge that his autocratic leadership style is not the solution to the arising problems in the mill and it would be more effective to delegate and empower the employees at all levels.

Firstly, I would recommend the mill manager to do away with a few levels in the management and redefine job descriptions for each role more clearly and realistically. On the basis of the span of control, it would be effective to discontinue the role of the Supervisor and the Production Superintendent, thus simplifying the management structure of the mill. It would also solve the problem of middle managers, according to whom there is over control of the supervisors and foremen. This would also consequently empower the foremen.

Secondly, the role of each position must be clearly reinstated and redesigned, if necessary, and then communicated to employees at all levels. After this, the manager needs to delegate tasks to the foremen with clear specifications, so as to ensure maximum productivity.

Thirdly, I would recommend the manager that systems must be introduced so that there is a proper and effective flow of communication between employees working at all levels. A periodical staff meeting would be an effective solution to this. Moreover, there must be regular communication between managers and supervisors to supervise and revise goals and strategies from time to time.

Finally, the lack of trust on the part of the manager is a primary reason for leaders failing to execute tasks successfully. The manager does not trust that anyone is responsible at all, as per the opinion of the middle managers recorded during the interviews. Therefore, there must be trust-building amongst all, especially the managers. With trust and proper delegation, the low morale prevailing in the mill amongst employees would also improve.