Nogo Railroad Case Study

Human Resource corporate structure is lacking and it is not engaged to operate as a strategic function There is no indication of HER providing development and guidance of policies/practices; no formal designation of authority; no oversight/participation in union negotiations, grievances or arbitration; no formal management training for leadership development; and lack of participation in the execution of strategic changes. 3. Unsuccessful union negotiations The union and Its members have a strangle hold on the company and have successfully leveraged that strength against the company’s best interest.


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Micro 1 . Lack of senior management assuming authority and Informal delegation of authority to lower level management 2. Lack of management support 3. Nepotism, featherbedding, and other counterproductive practices 4. Union positions are “trade” specific; Clerks and Telegraph Operators .

Burdensome expenses due to employee guarantees 6. Organized resistance 7. “Scapegoat” tactics. Unseasoned management placed in no-win situations with expectation of failure el. Causes 1 .

No established recruitment processes or policies 2.

No predefined job performance expectations and no means to measure Job output and performance of union positions. 3. Poorly negotiated union contracts; trade specific, employee guarantees, and no penalty for work slow down 4. Lack of strategic planning 5.

Lack of top-down senior management executor/accountability 6. Lack of formal management succession planning and Identification of candidates / Lack AT talent JODI criteria/expectations to ensure replacement personnel AT management positions are capable and prepared to hold position 8.

Lack of Change Management process 9. Lack of Communication process Ill. Systems Affected 1 . Inter- and intra- departmental relationships are strained and non-existent, in some cases 2.

Corporate vision, mission, and core values have been compromised 3. Strategic planning is not executable due to organized labor constraints and lack of leadership 4. Senior management does not possess appropriate span of control , leaving lower level management responsible for driving corporate direction. 5.

Human Resources Department is not involved and does not have the ability to facilitate a cohesive work environment 6. Fiscal responsibility has been usurped by employee demands ‘V.

Alternatives 1 . Perform detailed Job analysis to define scope, skills, knowledge, and training required 2. Implement resource planning and forecasting to ensure proper staffing 3. Implement standardized performance appraisal and management process 4. Implement formal leadership training and development programs 5.

Bring understanding that change is a long term process, not a one-time execution 6. Introduce a contract mediator to begin working toward a collaborative negotiation so both company and union members win 7. Educate the employees to better understand corporate fiscal responsibility and implications of poor monetary management 8. Introduce corporate vision, mission, and strategy to all levels of the organization and how each person contributes to the success of the organization 9. Introduce monthly scorecards of corporate, division, and departmental goals 10.

Implement employee-based focus groups to brainstorm issue resolution V.

The MONGO Railroad Company has been operating in a dated fashion and is experiencing the pains of not becoming more disciplined as the times have called over the past few decades. Correction is not impossible, it can be reached but it will require sacrifice and cooperation from the company and the union. The growth that will be experienced will not come without pain and a great deal of effort. Transformational change is required to achieve what is needed to ensure Mango’s future viability.