Problem-Solving Application Case - John Arnold Case Study - Engineering Assignment Help

Assignment Task :

Long-time employees complain that Caterpillar has changed. 

John Arnold, a 35-year-old parts auditor at Caterpillar's distribution facility in Morton, Illinois, says some of his coworkers are on food stamps. Arnold has worked for Caterpillar since 1999. More than 10 years later, he's making $15.66 an hour. 

To succeed today, does an employer have to worry about motivation? In recent years, Caterpillar, a Wall Street darling and mainstay of American manufacturing, has rolled back traditional extrinsic motivators. 

• Item: Caterpillar laid off 30,000 workers in 2009. 

• Item: By the second quarter of 2012, Cat's profit had jumped 67 percent from the previous year. (Net profits in 2011 2Q of $1.01 billion, or $1.52 per share, rose to net profits of $1.69 billion or $2.54 per share in 2012 2Q.) 

• Item: About the same time, Cat was freezing wages and reducing benefits. New contracts created a two-tier system so that new hires were brought in on an even lower wage scale. 

Apply the 3-Stop Problem-Solving Approach to OB 

• Stop 1: What is the problem? 

• Use the Integrative Framework for Understanding and Applying OB (Figure 5.9) to help 
• identify the outcomes that are important in this case. 
• Which of these outcomes are not being achieved in the case? 
• Based on considering the above two questions, what is the most important problem in this case? 

• Stop 2: Use the Integrative Framework to identify the OB concepts or theories that help you to understand the problem in this case. 

• What person factors are most relevant? 
• What environmental characteristics are most important to consider? 
• Do you need to consider any processes? Which ones? 
• What concepts or theories discussed in this chapter are most relevant for solving the key problem in this case? 

• Stop 3: What are your recommendations for solving the problem? 

•  Review the material in the chapter that most pertains to your proposed solution and look for practical recommendations. 
•  Use any past OB knowledge or experience to generate recommendations. 
•  Outline your plan for solving the problem in this case. 

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