Introduction: This case study is based on Ashraf Silk and General Mills (ASGM). The case study mainly focuses on how the organization is run and its major operations. The most crucial part of the case study is based on the employees at ASGM and the case will be analyzed in relation to the employees and their employers. The case study is based on a case from Gujranwala where approximately 10,000 weavers were working in over 1,000 textile weaving plants. The market of weaving industry was highly competitive and there was always a fear of losing weavers because their demand was greater than the supply, and hence the labour turnover rate in the weaving industry was very high. In ASGM, on average every two out of twelve weavers left every month according to an estimate by Fawad. This figure was particularly better than what it was in other organizations since ASGM had a good reputation with regards to weaver retention. This particular information will help in identifying the core issues that existed within the organization and the industry as a whole and then a solution will be devised keeping in consideration these on-ground realities such as labour turn-over rate and the need for keeping the employees motivated in the long run. The Core Issues: Considering the fact that the weaving industry was very competitive, keeping weavers motivated so that they did not leave made for an important part of every weaving organization‟s manager or head including ASGM. The weavers knew that they could leave the job whenever they wanted and get a new one without having to wait for long. So this kept Fawad wary of the situation and the reason why at ASGM, he personally gave them his time and energy to keep them motivated. In the section titled „Operations at ASGM‟, we learn that Fawad observed that the weavers had already made up their mind regarding what they needed to earn for the week because the payment was on per unit basis or more accurately, per meter of cloth produced in the case of weaving industries. In light of this, it could be argued that the weavers were not motivated to produce more than what they wanted to produce because of the lack of more incentives. It has been stated in the case study that at ASGM, the weavers worked in groups on twos and threes based on their friendships developed during the years. The weavers were loyal to each other and if any of them felt ill-treated, they could all leave and Fawad and the senior staff knew
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that. This was one of the reasons which contributed towards the high turn-over rate in the weaving industry in Pakistan. For that the Fawad needed to make sure that all of the workers that worked on a certain level of hierarchy were treated fairly. It goes without saying that NOT all workers can be satisfied completely but the majority of them should be on an equal footing in terms of treatment. Moreover, Fawad hired Ghulam Rasool as the supervisor of the automatic looms and within a week he demanded a raise which Fawad gave him as an incentive to increase productivity which did not happen. In fact, it led to a decrease in productivity since Ghulam Rasool leveled off at his previous wage level which meant that he was getting paid more for doing even less work. This was not what Fawad had planned and he needs to find a solution to the problem. Another major issue that Fawad faced was hiring back employees who had left at their discretion. Najibullah and Amjad left ASGM because unlike other employees, their pay was not increased because they were trainees and upon citing their concerns to Fawad, they were ignored and hence they left and got a job at another organization that paid them higher wages. The key point to note here was that they had been trained at the organization for 7 months and ideally they would be expected to start working on their looms soon. So, 3 days after they had left, they were brought back by their supervisor to be re-instated to their position and this presented a dilemma for Fawad to hire them back or not. Theories and Their Implementations: In light of the core issues addressed above, Fawad had numerous decisions that he had to make and also improve on the ones that he had made. Since Fawad knew that the workers did not have an incentive to work harder and earn more, he could motivate them through offering them a pay which was above the market equilibrium. This concept relates to the efficiency-wage theory minus the effect of labor turnover. For instance, Fawad could set a maximum production bar, over and above which the weavers would get paid more provided they do not compromise on quality than if they were staying within the limit. Instead of 7 Rs. /unit, they could be given 8 Rs. /unit. He might find it more profitable if the organization was to behave in such a manner. The weavers would work harder as a result because the organization would in a way be acknowledging their work and effort unlike the
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previous incentive system. As Michael LeBoeuf says in his book, The Greatest Management Principle in the World, “What gets rewarded gets done.” (Tracy, 2014) This would also reduce the turn-over rate of employees further since they would be getting paid more than they would elsewhere in the market. In the long run this would be more beneficial to them than the short run. This would result in a higher quantity as well as sustained quality of the end product. However, this theory could also back fire since the weavers were already being paid on an incentive based system which meant that the more they produced, the more they would get paid. However, this program would at least ensure that the weavers do not leave their job and since this sort of an incentive provides more acknowledgements, it would lead to a higher motivation level. The fact that the employees have developed a trust and bond within each other has a flip side to it as mentioned in the case study but looking at it from another perspective, the weavers would be happy and it would lead to higher productivity in the workplace. Although they could make a sort of union as well against the employees, so Fawad will have to make sure that all of their weavers are treated fairly so as not instigate an aggressive stance on part of the weavers. The person of Ghulam Rasool‟s experience could be used by Fawad in more beneficial ways. He could reduce his pay if Ghulam Rasool continues with reduced productivity. Given the mentality of Pakistani workers, he would work harder to sustain the same level of income that he previously generated. This would lead to a higher productivity level. However, this might lead to him leaving his job. Therefore what Fawad can do is to empower Ghulam Rasool and make him feel like a part of the business. For that Fawad will have to talk to him and make him realize that he „owns‟ the work that he is doing. This would help in motivating Ghulam Rasool since he would know what is expected of him and he would work harder which would benefit him as well as the organization as a whole. According to Kanter‟s theory of Structural empowerment, organizations which provide their employees with access to information, resources, support, and the opportunity to learn and develop have more committed employees who feel accountable for their own work, and are more effective at the workplace. As noted by Ericson, in his paper titled „Measuring the impact of collaborative governance: Beyond empowerment‟ that, „empowerment is thought to occur when an organization sincerely engages people and progressively responds to this engagement with mutual interest and intention to promote growth’ (Larken, Cierpial, Stack,

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& Victoria, 2008). Therefore, Fawad needs to oblige Ghulam Rasool and empower him for more productive results. Fawad‟s policy of only convincing the experienced weavers to say and to ignore the inexperienced ones might not prove to be the best idea since according to the demand and supply rule, the demand for weavers is greater than the supply for weavers. Instead, what Fawad should do is to use Feroze Shahid, his General Manager at ASGM to talk to them and counsel them. Feroze Shahid has a very good reputation among weavers and is one of the reasons of ASGM having one of the lowest turn-over rates in the weaving industry. Adam‟s equity theory (See Exhibit 1) of Motivation describes how people look for justice and fairness in social exchanges. The equity theory explains how the lack of justice or feeling ill-treated relates to reduced motivation level and higher rate of turn-over. Elaborating on this concept, we can talk about organizational justice which includes 3 components namely Distributive, procedural and interactional. The relevant component for our information is distributive and procedural justice. They talk about employees having a voice at their organization in the decisions that affect them and employers should consider their inputs into the decision making process. Taking the case of Najibullah and Amjad, Fawad Khan should reconsider them for employment again at ASGM because the organization and Ghulam Rasool had invested on their training on the automatic looms. Showing compassion to the young boys would induce a sense of accountability in them and would make them feel more responsible for their actions. If Fawad does not hire them maybe some other organization will reap the benefits of their training. And hiring new employees and investing on their training again is more expensive than if he were to hire them back. Fawad should make it a point to talk to his employees individually as well as in groups at least once a week to listen to their apprehensions and their problems and see if as an organization their problems can be resolved. Even if they cannot solve the problems but it would give a sense of security to the weavers that their employer cares about them and does not treat them as a means of creating money. This would convince them to work harder and have a sense of loyalty. This would make the weavers more motivated and increase their productivity at work. This can be explained with the help of a theory called „Management by Walking Around‟ (MBWA). In MBWA, senior managers observe their employees, give ideas about improvement in work space and opportunities and working with them to resolve their issues related to work and otherwise.
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„This repeated cycle of observation leads to a reduction in cost of future improvement efforts, creating a positive environment in the workplace‟. (Singer & Tucker, 2013) Suggestions: Looking at the case holistically, we can see that some of the organizational theories being employed by Fawad at ASGM are ineffective such as the incentive scheme being used. It has failed to produce the required results and the productivity has generally remained low. What Fawad needs to look at is whether applying a different incentive scheme which improves the motivation of the workers as well as reduce the turn-over rate of employees would be better than the current system. Moreover, Fawad should focus on maintaining a certain level of productivity which would be effective for ASGM in the long run. Retaining workers and showing consistency in that aspect will help him do that and apply different business and organizational models which help in doing that will not only improve productivity in the long run but also sustain the organization.

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Exhibit 1

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Exhibit 2

Access to information

Resources

Empowerment

Support

Opportunity to Learn

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Exhibit 3

Organizational Justice

Distributive Justice

Procedural Justice

Interactional Justice

Choice Effect

Voice Effect

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Bibliography
Larken, M. E., Cierpial, C. L., Stack, J. M., & Victoria, M. J. (2008). Empowerment Theory in Action: The Wisdom of Collaborative Governance. The Online Journal of issues in Nursing. Singer, S. J., & Tucker, A. L. (2013). The Effectiveness of Management-by-Walking-Around: A Randomized Field Study. Harvard business School. Tracy, B. (2014). The Four Factors Of Motivation. American Management Association.

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