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21 February 2012
Open Education Resources
The Future Newspaper

Local Firm Showing the Way

By Rachel Goldsworthy

News Gazette contributor

Naturally Baking leads in people management techniques.

A new style of management has brought significant benefits to local firm Naturally Baking. Implementing a policy of ‘industrial democracy’ allowed participation by all staff in company decision making, and has contributed to the company’s ongoing expansion.

Now ten years old, Naturally Baking first expanded significantly about five years ago when owners Ariana and Pieter took on new contracts.

The company was bought by the Australian concern Overbaking Ltd two years ago. At the time, staff worried that the Australian owner could cause difficulties, but since the takeover business has gone from strength to strength.

A year after taking control, Overbaking began a second expansion phase, and the local facilities now supply the Australian market. Staff numbers have grown from ten to more than one hundred, and further growth is planned.

With this increase in staff numbers, Overbaking decided to implement a new management style. After looking at a number of ways to improve consultation processes and productivity at Naturally Baking, a philosophy of industrial democracy was adopted. Company management no longer dictate policy and procedures to staff members. Industrial democracy is about participation – everyone has a say – and at Naturally Baking everyone does.

So what is industrial democracy? It is an evolving mode of management that enables more participation in decision-making within an organisation. At Naturally Baking this means the hierarchical nature of management does not always apply when decisions are considered. Managers still have overall responsibility for running the company, but there is wide consultation with employees before decisions are made.

We asked a group of the cleaners at Naturally Baking what they felt about how the process worked.

‘A few years ago,’ said one cleaner, ‘we were the lowest in this company. People hardly saw us because we came in after hours. We are full-time employees, which is great – some other bosses use contractors, but Naturally Baking has always been good that way. Still, we often felt that our ideas weren’t worth anything.

‘Then they brought in this new system, and suddenly we had input into a lot of decisions,’ she said.

‘Last year, they wanted to buy a new machine for one of the baking rooms. We were asked what we thought about it – they actually asked us! Anyway, we got together and talked about it, and decided that we’d make some comments. They wanted to put the machine in an awkward place for us – we couldn’t get round it properly to do the cleaning.

‘They actually listened. One of the executives came over to talk to our group, and we all discussed what we thought was a better way.

‘When they bought the machine, they followed our advice about the installation. We also got a special award from the company for making useful suggestions. Lots of other people are now getting involved in the decision making, and the whole culture round here has changed – everyone is important in making Naturally Baking the best provider of baking goods in the South Pacific.’

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