Weave-Tech High

A Brief Summary
Weave-Tech: High Performance Change, is a case about Weave-Tech, previously known as
Johnson-Ware transition from the previous CEO, Jack Davidson to Ron Gilford, the transfer
of ownership to a private equity firm, CVX Partners, and the new corporate strategy of the
new leadership. Weave-tech since World War II as focused in the industrial and military
appeal sectors with high quality, durable products. During the Jack Davidson years, Weave-
tech continued to secure its military sector by developing a team of managers, nicknamed D-
Corp, which consisted mostly of well-educated military veterans. Jack Davidson also showed
love for his employees which could be seen in his “survival before pride” motto and the “no
lay-off memo” he placed within the employee handbook (removed when CVX took over).
Major problems
The major problems of Weave-Tech include the abrupt shift to the high-performance
clothing in the private sector, reduction of managerial staffing and the hardships in the
sustenance of the corporate culture of the company. The problem of the abrupt shift led to
the decline in the company’s customer base, hence negatively impacting on the profit
generation of the firm. Weave-Tech has a potential to produce several products through
branding. These will, consequently, enable the company to make both short-term and long-
term profits. The problem of reduction of management staff led to understaffing hence
compromising production. The staffing is usually streamlined with the client needs and
services. Bureaucracy is a necessary evil in the Weave – Tech Company. However, the
concept is counterproductive because it fosters complacency and stagnation of the company.
Consequently, the company lacks a competitive edge. The reduction of staff is a
discriminatory event whereby the exercise is carried out at the discretion of the
management. The other problem is the ranking of employees’ ability based on weak data.
There should be an efficient communication between management and the employees to
enhance productivity in the textile and clothing service delivery.
Organizational change
Weave-Tech Company is subject to stagnation. The application of bureaucracy is a
manifestation of lack of organizational change. Additionally, the status quo prevails,
especially concerning the staffing of the company. The reign of bureaucracy also hinders
growth and change within the organization. Moreover, stagnation prevents the company
from meeting the unique needs of various clients.
Corporate culture and strategic direction
Corporate culture is upheld within the company. The company is accustomed to total quality
management and merit-based payment system. The culture helps the company in boosting
productivity and improvement of product quality. Additionally, the performance-based pay
remuneration system helps the company in the motivation of its employees. Additionally, the
major drawbacks of the company emanate from the unique customer needs. Therefore, the
company’s major challenge is prioritizing the customer needs. The company’s strategic
direction is compromised by the bureaucratic framework of its organization. Bureaucracy
hinders progress and strategic development of the company. For instance, the sudden shift
to the clothing section was not a strategic move, but a reactive move by the company
management.
The replacement of management staff
The replacement of management staff in the Weave – Tech Company is informed by the need
for proficient staff who can manage extra technical and complex tasks of the company. This
initiative saves on the cost of the company. The company avoids the intrigues of hiring a new
staff. Instead, the company hires employees who are multi-skilled and considerably updates
their remuneration. The replacement of staff led to the loss of jobs for the previous
employees. It had a negative impact on the community because the move sent a negative
signal to the community. Additionally, there was a loss of goodwill of the veteran employees
given the fact that the previous employees understood the operation of the company better
than the new recruits.
The abruptness of the transition also hurts the goodwill of the company. The assignment to
reduce managerial staff by 20% by the beginning of 2014 was given in October of 2013. A
four month period to have a 20% replacement in managerial staff contradicts the part of the
company’s mission to be”…committed to the well-being of [their] employees.”
The Ethical Issues
One of the ethical issues the company was embroiled in is undue termination of employees’
contracts. There was a lack of moral and ethical consideration in the reduction and
replacement of management staff. The move was swift, and the employees were never
provided with adequate time for the layoff. Additionally, Weave-Tech Company failed to
provide the employees with alternative employment or outsourcing to sustain their basic
needs. Since Weave-Tech operations ran within a smaller community, the effects of lay-offs
have a heavier wait. The 20% reduction is more than just a simple staff reduction, it is nearly
70 families within a small community that may not be able to meet their basic needs.