Ancol Ltd Case Study

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Ancol Ltd. Case Study | Prepared by Julie Dumoulin and Debrah Courville | Prepared for Jodi Smith For BUS 2040/Organizational Behaviour | November 29, 2014 November 29, 2014 Executive summary Paul Simard was newly recruited as plant manager at one of Canada’s leading metal fabrication companies, Ancol Ltd. The position is located at the Ancol plant in Jonquiere, Quebec. Even though the plant is the smallest of Ancol’s 15 plants, Simard viewed this career path as a very valuable first step. Simard immediately noticed that the relationship between employees and management was strained and decided to take down the time clocks. Simard assumed that the removal of the time clocks would demonstrate management’s trust in the employees to be truthful about their time worked. Simard also assumed that in return for this newly appointed trust, the employees would demonstrate stronger work ethics and respect their managers. Two months after the removal of the time clocks, Simard started to notice some problems. Employees began abusing the new freedom and the level of absence increased. Contrary to what Simard assumed would happen, production began to diminish due to absenteeism. As a consequence, supervisors began issuing letters of reprimand which led to employees seeking help from their union and filing grievances. Simard attempted to rectify the problems by increasing the supervisor to employee ratio. Simard hoped this would help the supervisors keep track of the employees as well as keep up with their own duties. It became harder for the supervisors to keep track of their employees, therefore, making it difficult for the payroll department to deduct pay for the time the employees were late. Nine months after the removal of the time clocks, it was decided to re-introduce the time clocks. This decision stemmed from the lack of attendance, poor production,
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