Organizational Behavior Cases
Is the unusual degree of unon-management cooperation in this case a result of good conflict management and negotiation, a healthy economy and good profits, or all of these factors working together? Explain.
After buying the aircraft plant from Boeing Co.s surprised many by the unusual scenario in witnessed in many companies. The company retained 4000 of the workers working for the preceding company (Holmes, 2007). Though some of its workers were sacked, the remaining members enjoyed wage increase and a share in the company’s stock. The deal between the Toronto investment firm and the Machinists workers union became famous for their compromise decision about the issue. The Spirit Company as it called itself was not doing quite well financially but they were able to come out and deal with the situation soberly. During the time of sale, the company operated by applying tough measures by imposing a $40 million cut on cooperates spending (Holmes, 2007).
Employees union negotiated a deal over the fate of the sacked workers with company which resulted in a negotiation that favored both sides. The Machinists union wanted the Aerospace Company to have at least formers compensated with the IPO that the company intended to offer to the public. The result was impressive as their grievances were taken into account. They were given the priority over the IPO which eventually became successful with the worker owning 10 percent of the offer (Holmes, 2007). According to the step taken, by the company it was not because the company was good financial position but the willingness of the Company to cooperate was the major driving force in reaching out to the negotiation table. The resolution made was a result good conflict resolution strategy because most of the problems were resolved through negotiation between the company the workers union. The financial strength of the business was also a factor in negotiating the deal. The incidences that surprised many workers were because the company was willing to pay a total of $246 million to its remaining workers (Holmes, 2007). A company struggling from financial crisis could not be involved in such a deal because the money spend were a lot.
The history of the company remains to be a legacy that several companies are looking to apply on their own workers. Some of these companies view it as a risk and they actually require more about such deal before they embark on.
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