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Case - 5 Threads of History Marks Springs industries of fort Mill, South Carolina, have done something that many organizations can only hope to do.
Case - 5 Threads of History MarksSprings industries of fort Mill, South Carolina, have done something that many organizations can onlyhope to do. Founded in 1887, it's survived for well over a century in an industry that's seen its share ofbrutal ups and downs. As the largest home-furnishings company in North America, Springs, 14,000associates (employees) make bath rugs bedspreads, pillows, towels, window blinds, and other textileproducts at manufacturing facilities in 13 states, Canada, and Mexico. The company's CEO, Crandall CloseBowles, is the great-great-granddaughter of the company's founders. When she became CEO in 1998, theU.S. textile industry was under intense attack by competition from cheap imports, Bowles realize that shewould have to make some changes in order to remain competitive. These changes entailed becomingamore efficient operation by streamlining the company's work processes and cutting domestic production.Although she struggled with the tough decision of manufacturing outside the United States and beingassumed to care more about profits than people, Bowles says," How many jobs can we have if we don'tmake a profit? If retailers will only sell goods made here and consumers will only buy product made here,I'll reopen all my plants here. I'd love to do that. But that just isn't going to happen." Choosing not tototally rely on outsourced manufacturing, Bowles is using an approach called mirror manufacturing, inwhich much of the company's product line is duplicates domestically. That way, if a customer needproduct quickly to meet a spike in demand or if a product starts to sell more than forecasted, there won'tbe a 90-day wait for product to be shipped from supplier. Instead, the company's U.S. plants can ship in amatter of days.CEO Bowles continues to manage her company for the long term. However, she says one of the biggestchallenges is to "motivate and reassure the employees that this company does have a future and we cangrow and prosper." One way that the company has chosen to do this is through its Rewards andrecognition program, which highlight and compensates outstanding associate of year. In 2004, NancyOgburn, a weaver at the Elliott plant in Lancaster, South Carolina, Won the award for her consistentlyoutstanding daily performance. Ogburn's department manager said," Nancy quality' safety, productivity,and attendance record set bar at the Elliott Plant and among the best in the company." When presentingthe award to Ogburn, CEO Bowles said, "...she embodies what this program is all about -going the extramile. It's because of associates like her that we've survived 117 years, why we have a future." Survivinganother century won't be easy, but this company has realized that although its past is important, itscurrent decisions actions will influence whether there's a future.QUESTIONS:-1. How might principles of scientific management be useful to spring industries? How about thequantitative approach?2. How might knowledge of organizational behavior help the company's frontline supervisorsmanage their employees? Would the CEO and other top managers need to understand OB? Whyor why not?3. Using Exhibit 2-6, describe Springs Industries as a system.4. Using information from the company's Web. Site, what values does this company embrace thatmight be important for successful organization in the twenty-first century?
