How we changed structures and processes

Over a period of several years, the employees and their superiors — together with their line manager,1 the author of this article — completely redesigned the labor process at and the structure of the Lemken Company, Rhineland, Germany. Decision making procedures and responsibility were transferred to work groups; middle management was reduced and decentralized; and the hierarchical organization was flattened out substantially. It was possible to create a shopfloor culture of trust based on direct communication between the work groups and the remaining management. Information, including that about the company’s financial situation, was made accessible to anyone in the company. Piecework payment was replaced by a fixed hourly wage. Flexitime and a voluntary profit sharing scheme were introduced.