Question: Read the case study given below and answer the following question (on S3). Dutton Engineering does not, at first sight, seem a likely candidate for
Read the case study given below and answer the following question (on S3). Dutton Engineering does not, at first sight, seem a likely candidate for world class. A small firm with 28 employees, specializing in steel cases for electronic equipment, it ought to be amongst the ranks of hand-to-mouth metal-bashers of the kind you can find all round the world. Yet Dutton has been doubling its turnover, sales per employee have doubled in an eight-year period, rejects are down from 10% to 0.7%, and over 99% of deliveries are made within 24 hours compared to only 60% being achieved within one week a few years ago. This transformation has not come overnight - the process started in 1989 - but it has clearly been successful and Dutton are now held up as an example to others of how typical small engineering firms can change. At the heart of the transformation which Ken Lewis, the original founder and architect of the change, has set in train is a commitment to improvements through people. The workforce is organized into four teams who manage themselves, setting work schedules, dealing with their own customers, costing their own orders and even setting their pay! The company has moved from traditional weekly pay to a system of 'annualized hours' where they contract to work for 1770 hours in year - and tailor this flexibly to the needs of the business with its peaks and troughs of activity. There is a high level of contribution to problem solving, encouraged by a simple reward system which pays 5-15 for bright ideas, and by a bonus scheme whereby 20% of profits are shared. Source: Based on Lewis, K. and S. Lytron (2000) How to Transform Your Company, Management Books, London
Q.6. Comment on Ken Lewis leadership style with at least two justifications. (
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