Creative Toys

Company
The Creative Toys Company, a small firm that specializes in producing small wooden toys,
was started by John Wilson. A carpenter by hobby, Mr. Wilson had made numerous toys for
his children. He found these toys to be quite marketable in an age of plastic, battery-operated,
easily broken toys. The company is proud of its history and stability and growth in the
industry. Low turnover rates are the result ofgood wages and fringe benefits.
One department in particular had been highly productive. The transportation department
at one time surpassed all other departments in production for 12 months. The only reason
for this success is the low turnover rate within the department. A11 eight people in the
department have held their currentjobs for at least two years.
This department is responsible for producing all the toy cars and trucks in the firm's
product line. Each department member has all the tools and equipment at his or her work-
station to produce a complete toy. Four workers make cars in the rnorning while the other
four produce trucks. The systen.r is reversed in tl.rc afiernoon to decreasc monotoll)'.
In the past. upper management allowed each department to determine its own procedurc
and r.nethods. as iong as production orders were filled on time. This departrnental autonol.lty
allowed the transportation department to rearrange its eiglrt work areas in a circular fashion
(see Figure 1). This circular arrangement let the department members converse with each
otirer and keep inforn.recl of each other's work habits and productivity. They uot ouly werc
high producers but also got along well outside o1'rvorli.
Ti-reolani tranagcr recently decided to bring ir.t consultants to determine if production
coLrld be increased without physical expansion: demand for company products had oui-
stripped production capacity. One recommendation dealt with the transportation depar'r-
merrt. Tite pirysical layout olthe department dici not facilitate efficient traffic flow to and
fi'om the other departn.rents. The transportatiou department r.vas located between the paint-
ing clcpartutent and thc r.voodcn biocl< departrnent. Supplies arrcl compieted products r.vere
placed in a storage area ir.r the shipping anci receivitrg departnrenl, creating considerabie
traffic through thc departr.r.rents. One ernploycc on a forklifi rvould bring supplies to ali the
departrnents and simr.ritaneously remove the completeci products.
Thu' consultants recolrmended rearranging the worli areas in tlie transportation deparl-
ntc1u inro eight individual arcas to facilitate traffic flow (see Figurc 2). In theirrenort. thc
consultarris vierved thc departmeutt productivity as having tltc potential Ibr substantiai

This case u as prepared by Debra .T. Mooney under the supervisiort of Theodore T. Hcrbert. The casc is tiot
intcnded ro rciiecr eithcr eiitctive or ineffectivc administrative or tecinical practices; it rvas prcpared for class
discussion.. Theodorcl'. Ilcrbcrt.CrummcrGraduatcSchool ofBusiness.RollinsColle-qc.WinterPari<.
lil_ 3r7Eo.

456
 Case 3 Creative Toys Company 457

improvements. The plant manager agreed with the assessment and had the workstations
rearranged during the next weekend.
After two months it was obvious that the transportation department's productivity was
declining. The plant manager spoke to all members of the department, hoping to find some
answers; howeveq department members could not articulate the problem. They knew only
that something had changed besides the physical arrangement of the work areas.
Mr. Wilson asked the plant manager for an explanation of the department's declining
productivity.

Plant Manager: I see no obvious reason for this decline. The department is composed
of the same people, doing the same work. The only difference is the work area layout, and
the workers seem to have adapted well. Perhaps a raise is the answer. In the past, this
department put out more than the other departments. Monetary recognition could be the
answer.
Mr. Wilson: We have done some rearranging in other, more unstable departments.

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performance.

The plant manager left the meeting feeling they had not solved the real problem but only
bypassed it, although he was unsure of what the real problem was.

FIGURE 1 Initial Transportation Department Work La1'ou,.

Wooden Painting
Block Department
Department

To Shipping
and Beceiving

Workstation

ffi' Worker

---) Traffic {low

458 Part Eight Case Problems

FIGURE 2
Rearranged
Transportation
Department Work
Layout
51:ff.
Department
!=
I
II * Fainting
Department

.l xfxHilv','

lr
!rI
It Workstation

Worker

----> Tratfic flow

StUdy GUidgS Discuss the role of social systems and their impact on productivity in this case. Be sure to
include comments on change, informal organization, communication, and motivation.