2
Responses to Write-Ups
1.
The shift from FAVI's mechanistic, centralized operational strategy to a decentralized mini-
factory approach, emphasizing customer-centric measures, continuous improvement, and
employee empowerment, illustrates an innovative system in automobile parts manufacturing.
The transition aligns with both firms’ transformation objectives, improving customer focus,
invention, and employee accountability. Nevertheless, the transformation uncovered
challenges such as limited career growth, communication breakdowns, and succession
planning issues for an aging workforce. Although the firms utilized training, frequent
communication, and leadership engagement to manage resistance to change, Including
employees in decision-making and highlighting their accomplishments could have been more
effective. In that regard, a middle ground between centralization and decentralization may
prove optimal for FAVI. This balance would allow the organization to keep the benefits of
autonomy while overcoming its challenges and adapting to the dynamic nature of the sector.
2.
Giving employees more say in daily operations and greater control over the quality of their
work, the mini-factory system enhanced FAVI efficiency and a customer-centric approach.
The business could experience drawbacks such as scalability concerns, altered communication
patterns, and limited promotion opportunities. Open lines of communication, employee
engagement, and extensive training may handle opposition to this change. Similarly, open
talks can address emerging concerns by aligning the change with organizational principles in
which teams can give their input. Leadership and operational training initiatives are also
essential for a successful system change. Opposition and uncertainty associated with lengthy
transitions may have been lessened if the change process hastened. Above all, integrating
elements of the previous strategy before the complete adoption of the mini-factory model
