Reference no: EM13188652

Read the case and answer the question that follows (at least 250 words):
The NoGo Railroad
Introduction
Allen Yates, the operations manager of the NoGo Railroad, promoted the chief dispatcher, Dave Keller, to communication manager of the division. Dave Keller was a recent graduate of State University, but his managerial experience was limited to only five years as chief dispatcher. Allen announced that Dave had demonstrated that he had the guts to do what was needed and the ability to act intelligently, rationally, and quickly in a crisis. He told Dave that his selection was based on his being single, willing to accept a temporary position, and amenable to extensive traveling, as well as on his effective, independent, decision-making capabilities.
Background
NoGo is a small, privately owned, and regional railroad operating in the northwest states of Washington, Idaho, Montana, and Wyoming. It serves remote and mountainous areas and hauls primarily timber, coal, potash, and phosphorous. As a consequence of NoGo's unique operations, it has had little competition and no compelling reason to modernize operations.
Dave was originally hired as a dispatcher because of his military experience. After six years of outstanding service, he was promoted to chief dispatcher, due in part to his youth and his excellent physical condition, attributes needed to stand the stress of the position. The previous chief dispatcher had had a heart attack on the job and was unable to return to work. Dave's yearly performance evaluations as chief dispatcher were consistently rated satisfactory by Rex Kelly, the Rail Manager.
Rex was scheduled for retirement, and Nick Chacco, the communication manager, was going to assume Rex's responsibilities. Dave accepted the vacated communication manager position, but was uneasy about his ability to perform the tasks ahead. He felt extremely uncomfortable about his people skills, educational background, and experience. He told Allen about his concerns, but the division manager told him not to worry about it.
Communications Department
Officially, Dave's responsibilities included managing the personnel who performed radio, teletype, telephone, and computer operations. These communication operations were performed by two groups of unionized employees: telegraph operators and clerks.
Unofficially, Allen had made arrangements for Dave to meet and travel with several experienced individuals. His purpose was to tour remote areas, observe different job functions, eliminate obsolete practices, and modernize wherever possible.
Dave discovered that the clerks were predominantly women. Their contract stipulated that they could not work directly with radio communications and train crews. The daily functions of the clerks varied from teletype and computer operations to general clerical duties. Their contract stated that they could not be sent more than 30 miles from home on assignments. In rural districts, this led to having a large force of clerks who could not cover for vacations and emergencies. Therefore, Dave found an overabundance of clerks without enough work to keep them all busy. 
The telegraph operators, predominantly men, no longer had to know Morse code, but were highly trained in radio, teletype, and computer operations. However, such skills as knot tying were still essential. Proper know tying was important in handing paperwork extended on a pole to the conductor and engineer passing by in a speeding train. The taller the employee, the easier and safer this practice.
Placing small "torpedoes" on the rails of the tracks to signal the crew of an oncoming train was another function of the telegraph operators. This loud explosion would alert the crew in the engine to a dangerous situation or inform them that there was new information to be picked up ahead. These and many other archaic traditions and procedures were still practiced in mountainous areas where communication by radio and cell phone was impossible or difficult between train dispatcher, train crews, and telegraph operators.
Union Contracts
The telegraph operators had a contract guaranteeing them 40 hours of weekly pay even if no work was available. This concession had been granted years before because of the long periods of time they spent on call or away from home and family. Each telegraph operator managed to receive this benefit four to six weeks per year during the slow winter season. Their pay was also higher than that of the clerks.
The telegraph operators could be sent anywhere, but could only replace telegraph operators. Clerks could only replace other clerks. It was not uncommon during major derailments for telegraph operators to be hundreds of miles from their home, on overtime, living on expenses paid by the railroad, yet working next to clerks who had nothing to do.
Rumors of Changes
Dave was aware of the rumors about lay-offs running rampant in the company and knew that these fears were justified. In addition, attempts to combine job descriptions and job functions in different departments were also under debate.
Dave knew that the removal of the fireman position from the engine of the train was meeting with an organized covert slowdown of work. The fireman position was a leftover from the days when the shoveling of coal was required to heat the boiler on the steam locomotive. The train crew in the engine consisted of the engineer, fireman, and brakeman. The fireman's only function, since the advent of the internal combustion engine, was to take over the controls of the engine should the engineer need assistance.
Since the decline of the steam engine, several unsuccessful attempts had been made to eliminate the fireman position by incorporating its duties with those of the brakeman.
Employees who believed they had enough seniority to remain after a layoff saw this as increasing their work without increasing their pay. When seasoned employees were asked to so a different task or function previously done by another job title, they would openly refuse. Backed by the union, they stated that it was not in their job description or their contract.
Challenges
After extensive research, Dave realized he had two immediate problems facing him: reducing the crushing employee expenses necessary in day-to-day operations and improving the attitude of employees to accept necessary changes to ensure the railroad's survival.
He believed that the morale problem had been created by a recruitment process that traditionally favored the hiring of relatives. This was a common practice throughout the region. Dave had observed employees working beside spouses, brothers, cousins, and children. Nepotism saturated many different levels of the organization. Featherbedding proliferated because of the high degree of nepotism historically in the railroad industry. (Featherbedding is the practice of limiting work output in order to provide more jobs and prevent unemployment.) Resistance to change was high, especially when cooperation could result in loss of employment for one or more family members.
Dave believed that if he could eliminate the featherbedding, reduction in expenses would follow. This would help to prevent a major layoff of clerks and telegraph operators. Both groups would have to accept some changes and take on additional or different duties. But this action would reduce the yearly income of many individuals who had grown to count on their guarantees, expense accounts, and overtime pay.
A new union contract was still two years away, and experience had shown that the union was very rigid about concessions in these areas. Gathering enough information and evidence to substantiate changes in job descriptions with union representatives would be impossible without help from upper management.
The thing Dave was uncertain about was whether or not there would be any organized resistance by the employees under his jurisdiction. Twice during his 11 years with the railroad, he had witnessed such subversive group resistance. Its effects were extremely devastating to the company and the responsible managers. The present slowdown by the train crews over the fireman issue attested to the power, strength, and attitude of the employees.
Conclusion
Dave was aware of his own career vulnerability if an organized effort took place against him. He wondered why someone with more experience hadn't been given these difficult tasks. Why was his being single an important criterion?
Originally, Dave was excited but also apprehensive about his promotion to communication manager. But once Dave was in the new position, Allan's unofficial duties for Dave cast a cloud over Dave's enthusiasm. Dave tried unsuccessfully to get written backing from Allen to support his unofficial directives. Allen's only advice was to do what was best for the railroad.
After much soul-searching, Dave begun to wonder whether he was being set up as the helmsman on a sinking ship or was just being paranoid. If he implemented the needed changes, he would lose employee support and fail to meet official expectations, possibly causing his dismissal if Allen didn't back him. If he didn't make the required changes, Allen would dismiss him, and thus the outcome would be the same. Dave felt forced to give Allen the changes he wanted, but didn't trust him for support afterwards.
Things were changing fast, and Dave wanted a fresh perspective. He felt the need for outside consultation before taking any action, but using company funds was out of the question. So for a small fee, out of his own pocket, he consulted and confided in a small group of outstanding business students at the local college. You are one of these students. 

How has the process of organizational socialization impacted workers at NoGo?