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National Aerospace Case Study

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Attn: Ms. Libby Woodruff
Subject: National Aerospace experience
Date: 10/30/14
From: Danielle Wilde

Introduction/Overview

National Aerospace recently encountered a time of ambiguity in which an important customer was considering backing out of their order. Partners from the UK considered pulling out of an extremely large and influential order due to the current recession. This crisis resulted in a fear of lay-offs prevalent amongst employees at National Aerospace because without the UK order, jobs are not likely to be as secure. Upper management quickly recognized the predicament they were in and had to decide how to face this uncertainty without creating panic amongst the workforce. Ultimately, management opted to make use of briefings and consultations in order to ensure that employees were fully informed as to the current situation. There was complete honesty and employees were encouraged to voice their thoughts and opinions. Participation and involvement by employees eventually led to the unanimous agreement by employees to implement a work sharing system. Under this suggestion, employees agreed to take a pay cut of 8.5% and share work time rather than implementing compulsory workforce redundancies. Not only did this approach avoid conflict but it also was very successful and resulted in increased production. To reach this high level of success, however, many strategies and concepts were put into place.

Analysis

The success of this approach was largely dependent on participative management. According to businessdictionary.com, participative management is defined as “ a type of management in which employees at all levels are encouraged to contribute ideas towards identifying and setting organizational-goals, problem solving, and other decisions that may directly affect them. “ This definition is almost an exact description of the system that was put into effect at National Aerospace. Rather than management solely making all of the decisions...

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