PPG-Self

directed workforce

COMPANY OVERVIEW:
PPG industry is a US based manufacturer of flat glass, fiber glass,
coatings and resins, chemicals and medical electronics. It wants to
develop a system of peer review instead of management review in its
plants for job performance appraisal. It has sales of $6 billion in
which $2.38 billion is from glass business. Since 1958 PPG is
searching for the right system of managing their work force from
employing a union free approach to self directed work force.
Union free approach provided the company more cordial relationship
with workers, more flexible work assignment, fewer job levels and
grades. They have adopted an entirely innovative and mould breaking
concept of glass making as well as work force management in their
Chehalis plant. In this semiautonomous work team were created
which were encouraged to organize itself and finding the best way to
assign and perform its work. Team members were encouraged to learn
about cost, budgeting, scrap ratio and take responsibilities usually
reserved for the management. Though this plant has to be closed
down, few positives were customer service, regional sale and lean
staffing. The reason of failure of this could be lack of proper
guidelines, support and leadership. PPG is trying to find out the
correct system of work force management in which there should be
complete flexibility in assigning work, fewer employees and lower
costs, minimal supervision, supported by team work and no physical
division between plant and office.
Company’s Objective – Addition in Auto glass capacity at Low cost
production and higher productivity.
HR Policies analysis with respect to objective:
1. Backed by company’s ‘objective of high productivity and low cost
production, Company decided to open a new plant, against expanding
the existing Greensburg factory, to serve as a self-directing workforce


model which would point the way for changes at unionized plants.
Berea plant – With an objective of implementing self-directed
workforce which will lead a way to give plant a continuous
performance by ingenuity of workers, Berea implemented following:
1. Recruitment –
(i) Using a 4 stage process including Assessment center simulations
(live behavior), they recruit people which they find fit in their 8
dimensions of employee performance (communication skills,
judgement, problem solving, organization skills, thoroughness and
accuracy, initiative, performance reliability and adaptation,
interpersonal skills). The motive wasto find people who have the
ability to establish sequences and procedures, identify weigh and
solve problems, collaborate and resolve conflicts, show initiative and
pride in quality work.
(ii) They recruited two levels of workforce, support and technicians
with different pay. They gave a psychological contract to support
workers that they will be soon promoted to technician grade.
2. Training – Initially they gave training to new recruitsin earlier plant
where workers were placed in different areas. After the plant started,
for training of new recruits, experienced crews were divided up and
spread across the shifts.
3. Pay and Promotion –
(i) Pay was 8 and 9 Dollars per hour respectively, which was about
average for workers in the area. This can give to a conflict in long run
as you are expecting a lot of benefits against the traditional ones but
not willing to differentiate them against others in terms of pay.
(ii) Promotion-wise also, some of the support staff were promoted to
technicians but not all. This gives rise to a conflict because of
violation of psychological contract.
(iii) Also, because of high feeling of team work in the plant, it was
difficult to evaluate personal performance now which could increase

further resentments in terms of promotion.

4. Job Rotation – Because of Ergonomics report, The supporting staff
was made to shift their positions in every 36 weeks. This gave to a
conflict as the people’s training and expertise couldn’t be developed,
which was the heart of the strategy. The coordinators were still
dependent upon the technicians in case of any problem. Also, during a
problem, due to production pressures, the staff wasn’t encouraged to
figure out the solution of problem itself and technicians were called
immediately.
5. Self direction model – Using the concepts of Situational leadership,
Directing/Coaching/Supporting and Delegating leadership styles were
designed and thus problem encountered in Chehalis were solved and
Self Directed workforce policy was implemented in full swings. Lots
of benefits were visible.
6. Peer Review: The concept of evaluating by other colleagues might
resolve the issue of evaluating personal performance but it may also
lead to rise in conflicts which will be against the objective.