Assignment

On

Case Study Analysis

Case Name: The Patterson Operation
Course Title: Organizational Behavior
Course Code: MGT 201

Submitted To:
Maksuda Hossain
Assistant Professor
Faculty of Business Administration

Submitted By:
Name
Tanjina Alam Jhumur
Shusmita Hoque
Syeda Nusrat Jahan
Sharmin Akter Juli

ID
142 200 104
142 200 057
143 200 037
133 200 012

Section

Date of Submission: 5th December 2015

Contents
1.1.

Company Profile:......................................................................................................................... 1

1.2.

Problems of the study: ................................................................................................................ 1

1.3.

Solutions from the Study: ........................................................................................................... 2

1.3.1.

Problem 1: ........................................................................................................................... 2

1.3.2.

Problem 2: ........................................................................................................................... 3

1.3.3.

Problem 3: ........................................................................................................................... 3

1.3.4.

Problem 4: ........................................................................................................................... 4

1.4.

Summary: .................................................................................................................................... 6

1.1. Company Profile:

Name:

Carrington Laboratories Inc.

Chairman:

George DeMott.

President & CEO:

Dr. Carlton E. Turner.

VP & CFO:

Robert W. Schnitzius

Office:

2001 Walnut Hill Lane, Irving, Texas 75038.

Telephone:

(972) 518-1300.

Website:

www.carringtonlabs.com.

1.2. Problems of the study:

1.2.1. Has the Patterson operation been successful? To the degree that it can be judged a
success, what factors have contributed to it?
1.2.2. Identify the leadership styles of Fred Hammond and May Allison. Apply several of
the leadership models to the case, such as Fiedlers contingency model and the
Hersey-Blanchard situational model.
1.2.3. Comment on the informal organization at Patterson. In what ways did the employees
create their own company?
1.2.4. Review Herzbergs two-factor model. Why didnt the change in physical working
conditions (a deterioration of a hygiene factor) have a negative effect on productivity?
What did cause the workers to be productive?

1.3. Solutions from the Study:

1.3.1. Problem 1:
Has the Patterson operation been successful? To the degree that it can be judged a
success, what factors have contributed to it?
Yes, the Patterson operation has been successful.
From the study, we have learnt that due to low productivity, low employee morale and high
unit costs, the Section 10 was turned to The Patterson Operation. The building was of the
Patterson Operation was dark, poorly ventilated, not air-conditioned, and inadequately
heated. But though the building house of the Patterson Operation was poorly suited for use
by workers involved in assembly operations; some other factors related to appointment of
new first line supervisor, workers participation in decision making, new assembly line,
independency & cooperation led to the success of Patterson operation.
The first & crucial factor beyond the success of Patterson operation was the appointment of
Fred Hammond as a first line supervisor. Management of the Carrington Incorporation
decided to assign Fred Hammond as first line supervisor, who made some drastic changes in
the assembly operation.
The second factor was new assembly line. Fred Hammond set up the assembly line so that
individual workers could work on the same job until that particular order was completed. As
a result the repetition of working on only one line enabled workers to develop speed, which
facilitated their earning bonuses.
The third factor was workers participation in decision making. Fred Hammond allowed
employees the opportunity to influence decisions concerning their work hours and the times
of their rest breaks. May Allison continued to get employees to participate in decisionmaking, for example, in the decision to change work hours at Patterson during the summer
months from 5:30 a.m. to 2:00 p.m. rather than 7:30 a.m. to 4:00 p.m. as in the other plan
areas.
The fourth was independency & Entertainment. Fred Hammond allowed the workers to have
radios tuned to popular music. Employees also get independent in case of choosing dress.
They did not have do observe dress codes, wear bonnets or refrain from wearing jewelry on
the job.
The fifth and biggest reason was cooperation. A feeling of mutual cooperation prevailed, as
evidenced by the willingness of individual workers to assist others when possible. An esprit
de corps developed among the Patterson workers.

1.3.2. Problem 2:
Identify the leadership styles of Fred Hammond and May Allison. Apply several of the
leadership models to the case, such as Fiedlers contingency model and Hersey
Blanchard situational model.
In that case Fred Hammond & May Allison always focused on the satisfaction, motivation
and the general well-being of the team members. Both of them focused on the satisfaction,
motivation & the general well being of the workers. Fred Hammond gave the permission to
play radios during the work. He also allowed the employee not to follow particular dress
code. As a results employee were motivated. This is relationship-oriented leadership of the
Behavioral Approach.
Fred Hammond & May Allison always allowed employees to participate in decision making.
Fred Hammond allowed employees the opportunity to influence decisions concerning their
work hours and the times of their rest breaks. May Allison also get employees to participate
in decision-making, for example, in the decision to change work hours at Patterson during the
summer months from 5:30 a.m. to 2:00 p.m. rather than 7:30 a.m. to 4:00 p.m. In this case
both of them have followed Participative leadership.
Fiedler contingency model identify the leadership styles of a particular leader from the
viewpoint of leader member relation, task structure & leader position power. Fred
Hammond & May Allison always maintained a good relationship with workers. So as the
leader member relation was good.
Fred Hammond set up the assembly line so that individual workers could work on the same
job until that particular order was completed. As a result the repetition of working on only
one line enabled workers to develop speed. As a result task was highly structured.
Management employed Fred Hammond as a fist line supervisor. As a first line supervisor he
has the power to direct the workers, provide reward or punishment. Here leader position
power was strong.
Both Fred Hammond & May Allison welcomed workers in shared decision making; allowed
employees choose their work time and break time. Here both of them tried to get the work
done by maintaining a good relationship. They provided less task behavior while maintained
high relationship behavior to get the job done. This comes under the Participating leadership
of Hersey Blanchard situational model.

1.3.3. Problem 3:
Comment on the informal organization at Patterson. In what ways did the employees
create their own company?
We think, the Patterson operation exceeded its limit in case of in formalization. It was more
informal that it needed.
3

Workers were permitted to play radios in production areas at high volume may hamper the
concentration of the employees. There was no definite uniform so that the security might be
at risk. The behavior of employees at Patterson represents poor discipline. They hardly follow
the rules of the management. Sometimes they made decisions by themselves and acted
independently, without reference to overall company personnel policy.
After shift to the Patterson Operation, Fred Hammond set up the assembly line so that
individual workers could work on the same job until that particular order was completed. As
a result the repetition of working on only one line enabled workers to develop speed, which
facilitated their earning bonuses. Employees got the incentive bonus and profit bonus so they
were thinking as own company. Fred Hammond & May Allison allowed employees the
opportunity to influence decisions concerning work hours and break time. Workers shifted
their work time depending on their mutual benefits, when the unbearable heat of the late
afternoon in the warehouse increased. The employees were attempting to get the company to
furnish some paint so that they could repaint the room. In order to have some place to eat or
to take a break the employees got together and furnished a small room with enough tables and
chairs to modestly equip a rather austere dining and rest break area. A feeling of mutual
cooperation became prevalent as evidenced by the willingness of individual workers to assist
others when possible. An esprit de corps developed among the Patterson workers. Finally,
Patterson employees made decision and acted independently in regarding the companys softball team called the Patterson Warriors. By that ways Patterson employees create their own
company.

1.3.4. Problem 4:
Review Herzbergs two-factor model. Why didnt the change in physical working
conditions (a deterioration of a hygiene factor) have a negative effect on productivity?
What did cause the workers to be productive?
The two-factor theory (also known as Herzberg's motivation-hygiene theory) states that there
are certain factors in the workplace that cause job satisfaction, while a separate set of factors
cause dissatisfaction. It was developed by Frederick Herzberg, a psychologist, who theorized
that job satisfaction and job dissatisfaction act independently of each other.
The first of the two are called hygiene factors. Herzberg used the term 'hygiene' to describe
factors that cause dissatisfaction in the workplace, are extrinsic (or independent of the work
itself), and are linked to things such as compensation, job security, organizational politics,
working conditions, quality of leadership, and relationships between supervisors,
subordinates, and peers.
The second factor is motivators or satisfiers. These are linked to employee motivation and
arise from intrinsic, or dependent, conditions of the job itself. Factors for satisfaction include
responsibility, job satisfaction, recognition, achievement, opportunities for growth, and
advancement.

The change in physical working conditions didnt have a negative effective on productivity
because the employees got the motivators or advantages such as bonuses, opportunities for
personal growth, responsibility, independency, recognition & cooperation.
The first reason for high productivity was getting bonuses. Under the new operation workers
were workers were managed by Fred Hammond. Fred Hammond set up the assembly line so
that individual workers could work on the same job until that particular order was completed.
As a result the repetition of working on only one line enabled workers to develop speed,
which facilitated their earning bonuses.
The second reason was opportunities for personal growth. The new assembly line was set up
in a way that every worker could work on the same job until that particular order was
completed. As a result workers ability to do the job and knowledge to do the particular job
quickly developed & that led to the opportunities for personal growth on the same field.
The third reason was responsibility. The workers participated in decision making; they
choose their work time which they think well. As a result responsibility increases because the
workers decided their work time and break time. The workers responsibility also increases
because the work force there gradually changed from one of inexperienced and dissatisfied
workers to one in which older and better qualified people (black and white) began to actively
bid for the jobs.
The fourth reason for high productivity was independency & entertainment. Fred Hammond
allowed the workers to have radios tuned to popular music. Employees also get independent
in case of dress. They did not have do observe dress codes, wear bonnets or refrain from
wearing jewelry on the job.
The fifth reason was recognition. Both the leaders & workers of Patterson operation
respected & admire each other. Everyone think that his or her colleagues & leaders respect
for them as a person, which motivated them to become more productive. Fred Hammond &
May Allison always tried to maintain a good relationship with the workers, which enhances
the achievement of respect between leaders and workforces. For example, May Allison made
a great relationship with the workforce & earned the respect and admiration of the
employees. May is well-liked personally as evidenced by employee contributions of about
$75 for her birthday gift.
The sixth and biggest reason was cooperation. A feeling of mutual cooperation prevailed, as
evidenced by the willingness of individual workers to assist others when possible. An esprit
de corps developed among the Patterson workers.

The present of both hygiene factors & motivator factors cause the workers to be productive.
We know if hygiene factors are absent then dissatisfaction will be raise, if present there will
be no dissatisfaction. Again for the mentioned motivated factors the workers became
productive too.

1.4. Summary:
Carrington, Inc. is an international company engaged in the production and distribution of
pharmaceuticals, proprietary drugs, and cosmetics and toiletries. The assembly department of this
company (known as section 10) was engaged in the assembly of prepaks or deals. The firm uses a
Halsey 50-50 Incentive Plan to provide bonus for its workers. In its assembly department, the
management faced problems such as lower productivity, low employee morale, and high unit costs.
No employees were able to earn a bonus under the incentive plan. During the last three years cost
figures revealed that the section was below the break-even point. Due to the needs for extension of
production department, management forced the assembly of prepaks to shift to the Patterson
warehouse. The building house of the Patterson Operation was an old brick structure, dark, poorly
ventilated, not air-conditioned, and inadequately heated without cafeteria, rest rooms. Management
assigned Fred Hammond as a first line supervisor. He made some drastic changes in the assembly
operation which allowed workers to work on the same job until that particular order was completed.
He also allowed workers the opportunity to influence decisions concerning their work hours. He
permitted workers to play radio at the time of work. Employees did not have do observe dress codes,
wear bonnets or refrain from wearing jewelry on the job. In order to have some place to eat or take a
break, the employees got together and furnished a small room with enough tables and chairs to
modestly equip a rather austere dining room and break area.

Eventually, this room was air-

conditioned. A feeling of mutual cooperation prevailed, as evidenced by the willingness of individual

workers to assist others when possible. Employees came to view Patterson as their own company.
An esprit de corps developed among the Patterson workers. Management surprised at the leadership
of Fred Hammond and his position was promoted. He was replaced by May Allison who has
continued to run the operation in the same manner as Hammond. She made a great relationship with
the workforce & earned the respect and admiration of the employees. Sometimes they made

decisions by themselves and acted independently, without reference to overall company

personnel policy. Although some informal rules existed between workers at Patterson operation, all
of these have been tolerated by management due to productivity increase. They developed their own
softball team called the Patterson Warriors which was composed of players of all units instead of
one unit. All of these led to 32.8 percent in productivity than section 10. Work records at the Patterson
operation concerning absenteeism, tardiness, and turnover are not better than those in the main plant.
The success story of Patterson operation is fairly well known among the managers at the mid-south
plant of Carrington although management reactions range from positive to negative, with some
managers ambivalent about Patterson.