Johnsonville Sausage Company

s to the problems. Ralph realized his major problem was that during the past couple of years he had taken good care of the financial aspect of the business while neglecting the human aspect of it. He immediately envisioned a plan of action. Several changes took place during the years that followed. A new company philosophy emerged. Ralph's primary objective became to create and environment where individuals were no longer regarded as mere instruments for the advancement of the business, but as entrepreneurs who became process owners and dictated their own development, responsibilities and performance. When faced with the day to day problems, management resorted to ask: "Who is best fit to decide". The task at hand was given to the area best suited to resolve the issue. Progressively, scheduling, quality control, purchasing, pricing and advertising became the responsibility of the areas that possessed knowledge of that section of the operation. Also measures that rewarded problem solving, decision making and leadership were implemented. Employee motivation increased, which resulted in a significant improvement performance and job satisfaction. Ralph's job became to provide the workers the support and the information they needed to improve their own performance. As a result, the company was running effectively and efficiently.
             In mid 1986, Ralph was presented with a very tempting offer. Palmer Sausage was offering to give Johnsonville Sausage Co. production of a plant that they were closing. Johnsonville Sausage Co. was already manufacturing two products for Palmer Sausage. Although the offer represented more business – a great opportunity for the company, there were key issues that needed to be carefully considered before making a decision.
             Johnsonville Sausage Co. had decided not to take on private level business beyond a point were it would begin to compete with their own products. Palmer&apos...

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