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Harvard Case - Too Much Alcohol at a Remote Construction Site

"Too Much Alcohol at a Remote Construction Site" Harvard business case study is written by Soumendra N. Bagchi, Rajeev Sharma. It deals with the challenges in the field of Organizational Behavior. The case study is 11 page(s) long and it was first published on : May 4, 2016

At Fern Fort University, we recommend a multi-pronged approach to address the excessive alcohol consumption at the remote construction site. This approach focuses on changing the organizational culture to promote a healthy and safe work environment, fostering leadership development to empower supervisors to address the issue effectively, and implementing clear policies and consequences for alcohol-related violations.

2. Background

The case study focuses on a remote construction site in Alaska where excessive alcohol consumption is a prevalent issue. The site is characterized by a remote location, long working hours, and a predominantly male workforce. The company, a subsidiary of a large multinational corporation, has a weak safety culture and lacks effective leadership to address the problem. This has resulted in low morale, increased accidents, and negative impact on productivity. The main protagonists are the site manager, John, who is struggling to maintain control, and the company's CEO, who is concerned about the potential legal and reputational risks associated with the situation.

3. Analysis of the Case Study

The case highlights several key issues related to organizational behavior, leadership, and culture.

  • Organizational Culture: The prevalent drinking culture at the site stems from a combination of factors: the remote location, the long hours, and the lack of alternative recreational activities. This culture has become deeply ingrained, making it difficult to change.
  • Leadership: John, the site manager, lacks the necessary skills and authority to address the problem effectively. He is hesitant to confront the issue and lacks the support from upper management to implement meaningful change.
  • Team Dynamics: The strong camaraderie among the workers, while positive in some aspects, has also contributed to the normalization of excessive alcohol consumption. This creates a difficult environment for those who choose not to participate.
  • Motivation Theories: The workers' motivation is likely influenced by factors such as the desire to escape the harsh working conditions, the social pressure to conform, and the lack of alternative forms of reward and recognition.

4. Recommendations

  1. Change Management: Implement a comprehensive change management program to address the drinking culture. This program should involve the following:

    • Communication: Clearly communicate the company's expectations regarding alcohol consumption and the potential consequences of violating these expectations.
    • Education: Conduct training sessions on the dangers of alcohol abuse, its impact on job performance, and the legal and ethical implications.
    • Support: Provide employees with access to resources and support services, including counseling, employee assistance programs, and support groups.
    • Incentives: Implement reward systems to recognize and encourage positive behavior, such as participation in wellness programs and adherence to safety protocols.
  2. Leadership Development: Invest in leadership training for John and other supervisors to equip them with the skills and confidence to address the issue effectively. This training should focus on:

    • Communication Skills: Developing effective communication strategies to address the issue with employees, including active listening, empathy, and constructive feedback.
    • Conflict Resolution: Learning techniques for resolving conflicts effectively and fairly, while maintaining a respectful and professional environment.
    • Decision-Making: Developing the ability to make informed decisions based on data, ethical considerations, and the long-term well-being of the team.
  3. Policy and Enforcement: Implement clear and concise policies regarding alcohol consumption at the worksite. These policies should include:

    • Zero-Tolerance Policy: Strict enforcement of a zero-tolerance policy for alcohol consumption during work hours and on company property.
    • Consequences: Clearly defined consequences for violations, including disciplinary action, suspension, and even termination.
    • Reporting Mechanism: Establish a confidential reporting mechanism for employees to report violations without fear of retaliation.
  4. Employee Engagement: Foster a culture of employee engagement and empowerment by:

    • Open Communication: Creating an open and transparent communication environment where employees feel comfortable voicing their concerns and suggestions.
    • Employee Involvement: Involving employees in the development and implementation of solutions to address the issue.
    • Team Building Activities: Organizing team-building activities that promote healthy social interactions and alternative forms of recreation.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  1. Core Competencies and Mission: The recommendations align with the company's core values of safety, respect, and ethical conduct. They are also consistent with the company's mission to provide a safe and healthy work environment for all employees.
  2. External Customers and Internal Clients: The recommendations address the concerns of both external customers (who may be impacted by project delays or safety issues) and internal clients (employees who deserve a safe and respectful work environment).
  3. Competitors: The recommendations aim to create a competitive advantage by fostering a positive work environment that attracts and retains top talent.
  4. Attractiveness: The recommendations are expected to yield positive returns on investment by reducing accidents, improving productivity, and enhancing employee morale.

6. Conclusion

Addressing the excessive alcohol consumption at the remote construction site requires a comprehensive and multifaceted approach. By implementing a combination of culture change, leadership development, policy enforcement, and employee engagement, the company can create a healthier and safer work environment, improve employee morale, and enhance productivity.

7. Discussion

Other alternatives not selected include:

  • Relocating the Site: This would be a costly and time-consuming solution, and may not be feasible in the short term.
  • Ignoring the Issue: This would create a significant risk of legal liability, reputational damage, and potential harm to employees.

Key assumptions:

  • The company is committed to creating a safe and healthy work environment.
  • Employees are willing to participate in the change process.
  • Leadership is willing to invest in training and development.

8. Next Steps

  1. Develop a comprehensive change management plan: This plan should outline the specific actions to be taken, the timeline for implementation, and the resources required.
  2. Communicate the plan to employees: This communication should be clear, concise, and transparent.
  3. Implement the plan: This includes conducting training sessions, implementing new policies, and providing support services to employees.
  4. Monitor progress and make adjustments: Regularly monitor the progress of the plan and make adjustments as needed.

By taking these steps, the company can address the excessive alcohol consumption at the remote construction site and create a more positive and productive work environment for all employees.

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Case Description

In September 2014, an American expatriate project manager at High-Tech Construction Pvt. Ltd. (High-Tech) received a late-night call saying that an engineer at a remote project site in India was extremely ill after consuming alcohol at an employee party. The driver would not take the sick employee to the hospital unless the project manager gave permission, but would giving permission drag High-Tech into a complicated situation? The expatriate manager was unsure of the legal ramifications involved in death or injury due to drinking. In addition, he was concerned about the effect on the company if the media was involved. Because he was an American in a multinational company with Indian employees, the story was potentially more saleable. Furthermore, was it prudent to inform the sick employee's parents yet, or should he call the head of the human resources department for advice? As the project manager, he would have to make the final decision. It had been just a couple months since he arrived in India and less than a month since the start of work on the current project, and now he had a crisis to deal with.

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