Nogo Railroad Case Study
NOGO Railroad Case Analysis
I. Problems A. Macro 1. Organizational Culture
NOGO Railroad's culture and norms inhibit the introduction of process improvements, changes in roles and responsibilities, and cooperation between union and management. 2. Human Resource corporate structure is lacking and it is not engaged to operate as a strategic function
There is no indication of HR 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. B. 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
5. Burdensome expenses due to employee guarantees
6. Organized resistance
7. "Scapegoat" tactics, unseasoned management placed in no-win situations with expectation of failure
II. 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 execution/accountability
6. Lack of formal management succession planning and identification of candidates
7. Lack of defined job criteria/expectations to ensure replacement personnel of management positions are capable
I. Problems A. Macro 1. Organizational Culture
NOGO Railroad's culture and norms inhibit the introduction of process improvements, changes in roles and responsibilities, and cooperation between union and management. 2. Human Resource corporate structure is lacking and it is not engaged to operate as a strategic function
There is no indication of HR 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. B. 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
5. Burdensome expenses due to employee guarantees
6. Organized resistance
7. "Scapegoat" tactics, unseasoned management placed in no-win situations with expectation of failure
II. 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 execution/accountability
6. Lack of formal management succession planning and identification of candidates
7. Lack of defined job criteria/expectations to ensure replacement personnel of management positions are capable