Managerial Economics & Organizational Architecture 5th Edition by James Brickley, Jerold Zimmerman, Clifford Smith

تمرين 17

In the past several years, General Motors, a large auto manufacturer, and Levi Strauss, a major apparel manufacturer, have implemented team-based production processes. Under team-based production, each employee is assigned to a team, and each employee is evaluated and compensated based on the productivity of their team.
General Motors implemented team-based production at its new Saturn car plant. No other GM plant has implemented team-based production (at least not nearly to the same extent). The Saturn plant is a new facility (i.e., not a converted existing GM facility), and team-based production processes have been in place since the plant began production. Saturn employees were generally new hires; few, if any, came from other GM facilities.
Levi Strauss adopted team-based production processes at its existing plants. Employees who had been previously paid on a piece-rate basis were put on a team-based process.
Team-based production at the General Motors Saturn division is widely regarded as a success. Saturn cars are some of the best-built cars in the GM product line. Workplace morale is high at the Saturn plant. By contrast, the Levi Strauss team-based initiative is widely regarded as a failure. Worker productivity has declined and employee morale is low. What factors caused the Saturn experiment with team-based production to be a success and the Levi Strauss experiment to be a failure Why