Lightco Case Study: Analyzing Employee Morale and Leadership

This case study examines the challenges faced by Lightco, a publicly owned utility, and its president, David White, in addressing declining employee morale. The analysis focuses on the impact of organizational changes, particularly the implementation of 'business process improvement teams' and the resulting job insecurity due to attrition. The study explores the employees' discontent, stemming from perceived lack of communication, support, and the management's failure to uphold the values of the cultural change. The case highlights the importance of considering employee well-being alongside efficiency and effectiveness in organizational change initiatives. It underscores the critical role of leadership in fostering a positive work environment and managing employee expectations during periods of significant change. The study draws upon the work of Mills (2005) to analyze these issues.

Lightco – A case study
David White, President of the publicly owned utility - Lightco, sensed that the company was
facing morale issue amongst the employees and he was clear that something has to be done
about it quickly. He discovered through employee attitude survey that the employees were
discontented with the treatment meted out to them and felt that there was lack of
communication and support from the Head Office. It was evident that it was time for a shift
in the cultural values of the organisation. The new cultural change made the employees view
the organisation from a different perspective. They all thought it to be a positive change for
the company. (Mills, 2005)
Following the privatization of Lightco, the management felt that Lightco was overstaffed and
initiated 'business process improvement teams' to oversee streamlining jobs and cut down on
unnecessary costs. With the onset of attrition, the issue of job security became a prime focus.
The fear of losing their jobs and their entire department being outsourced loomed larger on
the employees. It led to unrest amongst the employees and their morale were at an all-time
high. Additionally, the employees were furious, sad and worried about the great amount of
work they had to do without being acknowledged for the same. Further, they also doubted the
changes implemented as the management failed to explain them and also rumours
surrounding the attrition of jobs. Employees opined that the management did not held true to
the values propagated in the culture change. White felt that the re-engineering process did not
pay attention to the happiness of the staffs and instead focussed only on the effectiveness and
efficiency quotient of the employees. (Mills, 2005)
Reference –
Mills, J. (2005). Making Sense of Change: The Case of Lightco. The McGraw-Hill
Companies, Inc..