The transition from a top down management structure to an employee-based structure tornfraught with many challenges, however the results make it worthwhile. A labor force that is provided thernopportunity to have input in policy decision can result in a strong level of commitment and dedication.rnBonuses are used as a way to reward employees and managers for achieving the benchmarks they agree tornfor improving operations.rnThe Atlantic County Utilities Authority is a mid-size utility company. The Authority provides environmentalrnservices throughout southern New Jersey and has an annual operating budget of $48 M. and a capital budgetrnin excess of $10 M. The Authority consists of 241 employees ranging from professionals to blue-collarrnworkers. Solid waste operations make up 60 percent of the employee base.rnPrior to 1990, this company was typical of many businesses throughout the country. Change would occur onlyrnin response to outside forces. It took the threat of privatization and similar crises to get management’srnattention and reduce costs. Some of the managers in the organization lived by the saying “if it is not broke,rndon’t fix it.” A common response to new ideas was “that is the way we have always done it.” This attitudernprevented improvement of services and processes.rnMany managers believed their responsibility was limited to short-term problem solving or putting out fires. Thisrnis very different from creating change or new processes which are required of any successful business inrntoday’s working environment (Kofman, 1995).rnDuring the 1990's, this organization went through significant changes due to the deregulation of the solidrnwaste industry. Every aspect of the organization was reviewed and streamlined resulting in major changesrnand downsizing. Given the deregulation of our industry, many of the concepts discussed in LearningrnOrganizations were implemented. This analysis will review some of these management techniques and gaugerntheir level of success.rnIn 1994, a United States Supreme Court decision indicated that the premise that had allowed solid wasternutilities throughout the country to operate as monopolies was unconstitutional. It was only a matter of timernbefore total deregulation would occur. This was especially troubling in New Jersey where an over $1.6 B. wasrnbonded based on the premise that flow control would force waste to the county systems to provide for thernretirement of all debt. The only thing that delayed the inevitable was the requirement that District Courtsrninterpret the Supreme Court’s decision as it applied to New Jersey. The courts finally deregulated the industryrnin October 1997 forcing a potential default. Wall Street declared this a financial crisis and bondholdersrnthroughout the country began to panic.rnThe evolution of our company from a monopoly to a competitive force began even before the Supreme Court
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