Notes of –“The Morning Star Company-Self Management at work”

Overview

Founder:-1970, Chris Rufer.

Partner:-Paul Green.

Place:-California’s Central San Joaquin Valley.

(State’s fertile agriculture heartland)

Deals:-Processing of Tomatoes.

Tomato supply chain.

Main Products:-Tomato Based Products.

40% share in Diced Tomato

Tomato paste. Market.

Customers:-Supermarkets.

Branded Food-Service Companies.

Focuses on:-Self Management & Peer accountability

Mission:-“Our Mission is to produce tomato products that consistently achieve the product and service

expectations of our customers in a cost-effective, environmently responsible manner. We will provide bulk-

packaged products to food processors and customer-branded, finished products to the food service and retail

trade.”

Colleague Principles:-Mission, Individual Goals & Teamworks, Personal Responsibilty & intiative, Tolerence,

Direct Communication & Gaining agreement, Caring & Sharing, Doing what is Right.

History

1970-Founded ‘’Morning star Trucking Company.’’

-Hauling Tomatoes and Peaches from farms to Processing Facilities.

1982-Founded ‘’Ingomer Packing Company.’’

-Processing of Tomato Paste.

-Proved to be successful & Leading the market.

1990-Launched ‘’Morning star Packing Company.’’

-adopted Self-management approach & Colleague Principles.

1995-new facility ‘’Morning star Packing Company, Williams’’

-Largest in California.

2002-Purchased existing facility ‘’Liberty Packing Company’’

-Diced Product Processing.

2008-Rufer Founded ‘’Self-management institute’’

-Encourage research & learning at workplace.

2012-Total sales $700 million (performing really well)

Summary

- Cost Leader.

-Goal to operate full capacity for entire production season (24x7)

Processing Operations

Growing—Harvesting—Trucking—Grading—Unloading—Sorting--Hot/Cold Break—Finishers—Evaporators--Flash

cooler--Fillers.

Self-management

-means you have less control, but individuals have freedom to sense and act.

-Philosophy:-‘’people are productive when they are happy; people are happy when they have control over what

they do.’’

-Guided by the idea of total responsibility.

Company Principles

-Refraining from initiating physical force against other people.

-Doing everything they agreed to do.

-Based on Fundamental Principles

-Company’s approach to Organising, identifying 5 key aspects:

Organisation is but an idea-a concept.

Profitability and growth are the natural outgrowths of excellent execution and innovation.

People think innovate when they achieve freedom of choice.

Principles of self-management & total responsibility- most effective principles.

Employees Related Approaches

Empowering employees by letting them identify their personal mission

-Writing a personal mission statement-so that to know how they can contribute towards company’s goal.

-Mission is to maximize overall efficiency and effectiveness and also to promote accountability.

-Culture of self-management also extended to staffing decisions.

Colleague Letter of Understanding

-identify each employee’s responsibility activities.

-allows employees to fulfil their mission.

Gaining agreement/Conflict resolution Process

Compensation Steps

-firstly, Colleague letter of understanding review.

-Secondly, Compensation packet- 4 components

Compensation letter Colleague Review CLOU Steppingstone

Summary Report Results

-Thirdly, Compensation Committee Review.

Capital Budgeting-they have right to acquire the resources needed to complete the work.

Concluding

-managed to establish as the dominant player in the tomato processing industry.

-also did justice to maintaining Company’s distinctive approach to management.

-Encourage greater accountability.

-Proposal to address Compensation & Accountability

Premium pay Accountability & Current

Evaluation Process

-So the proposal was actually implementable or not-even, if it wasn’t it would be sufficient to drive

accountability behaviours.

privately engage

your colleagues

engage a third

colleague establish a panel

elevate to the

president

Follow the course of action