Sie sind auf Seite 1von 23

32 CHAPTER 1 The Manager’s Job

l 1-A Case Problem


Big Hopes at Olive Garden, Red Lobster, and LongHorn
Steakhouse
Clarence Otis, chairman and chief executive of entrées paired with appetizers and wine from
Darden Restaurants Inc., sees better days ahead regions of the world where prices are lower or
for an industry that took a beating during the from newer vineyards that charge less than
Great Recession of the recent past. Otis, whose more established ones. Darden also reduced
company owns Olive Garden, Red Lobster, the pace at which it opened new restaurants.
LongHorn Steakhouse, and other casual- The biggest lesson that was reinforced for
dining chains, expected the job losses that cut him during the downturn, Otis said, was to
consumer spending to abate in the first quarter spend conservatively and to keep debt low
of 2010. even when times are good.
“Restaurants, historically, are one of the first
industries to benefit coming out of a recession. Discussion Questions
People have deferred big-ticket items like cars, 1. What managerial roles is Clarence Otis
appliances and vacations, and a meal out is a emphasizing in the case just presented?
low-ticket treat,” said Otis. 2. What challenges would restaurant managers
Darden planned to capitalize on the recovery face in implementing Otis’s approach to
by doing the things it had been planning to do keeping the restaurants performing well dur-
prior to the recession, such as investing in menu ing a slow period in the economy?
development and employee training, remodel- 3. If you have visited a Darden restaurant
ling restaurants, and preserving cash. lately, what suggestions can you offer top-
Unlike many restaurant chains that turned to level management for attracting even more
heavy discounting to lure customers, Darden customers?
avoided that. Buy-one-get-one-free or half-off 4. Based on media reports, how successful do you
promotions “run the risk of communicating to think Clarence Otis has been in helping the
consumers that price is the primary attribute of Darden chain become a continuing success?
your brand and it overwhelms all the other 5. What financial management practices of the
things that go into developing a strong Darden chain might be useful to you in man-
brand,” Otis said. Instead, Darden introduced aging your personal finances?
new menu items at lower prices; that helped
restaurants keep the same profit.
Source: Julie Jargon, “Darden Runs Lean, Keeps Pricing Firm at
At its upscale Capital Grille chain the com- Restaurant Chains,” The Wall Street Journal, December 28,
pany offered, for $40 per person, new seafood 2009, p. B5.

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Case Problem 33

l 1-B Case Problem


The Management Trainee Blues
Sara Fenton was excited about having been father announced their plans to
recruited into the restaurant manager training divorce and Jen just can’t take
program at a national restaurant chain. As an the emotional pain. It will be
assistant manager to Johnny Sanchez, she tough replacing Jen until she
would perform a variety of managerial duties returns.
at a busy restaurant in suburban Cleveland, September 25: Chuck, a member of the wait
Ohio. If she performed well in her responsibili- staff, accidentally spilled hot
ties for two years, she would be assigned to coffee on one of the customers.
manage her own restaurant within the chain. The customer demanded to see
Before shifting into her job as assistant man- the manager, so I tried to take
ager, first Sara had to spend six weeks on the care of the problem. The man
wait staff. “This assignment was a natural for was irate, and talked about
me because I had worked part-time as a server suing the restaurant. I tried to
for several years in high school and college,” calm him down, and offered to
Sara said. “Working in the dining room was pay for his meal as well as for
also a good way to learn more about the restau- dry cleaning his trousers. I don’t
rant where I would be an assistant manager.” know the final outcome of this
After performing well as a server, and earning problem, but it looks ugly.
wonderful tips, Sara was appointed to the assis- October 5: Johnny informs me that the
tant manager position as promised. restaurant chain is concerned
Influenced by a workshop on the topic of that some of the spinach it
time management Sara took at school, she bought this week contained E.
decided to maintain a log of her activities as coli bacteria. We are getting rid
manager. Among the entries were as follows: of all the spinach we can find in
the restaurant, but some of the
September 2: Bill, one of the wait staff, sent
salads we served the last few
me an e-mail saying that he
days may have been contami-
could not work today because
nated. Johnny wants me to in-
his uncle shot himself in a
vestigate. Does he think I’m a
hunting accident, and Bill had
chemist and detective as well as
to wait at the hospital. What a
a management trainee?
mess, because we are short-
handed in the dining room this Sara is scheduled to meet with Johnny San-
busy Labor Day weekend chez later this week to discuss her impressions
anyway. of her work as the assistant restaurant manager.
September 6: Jen, one of the best servers on Sara reflected, “What can I say that is positive?
the staff, said she needs a week The problems I’m dealing with so far don’t
off to take care of a personal seem like the job of a real manager. I wonder
problem. After 25 years of if I’ve chosen the right field? These day-by-day
marriage, her mother and headaches are a lot to cope with.”

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
34 CHAPTER 1 The Manager’s Job

l 1-B Case Problem


Discussion Questions
1. Advise Sara on whether she is really learning
2. What should Sara tell Johnny on her review
of her experiences?
some valuable lessons as a potential 3. Which managerial roles has Sara been carry-
manager. ing out as indicated by her activity log?

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Case Problem 71

l 2-A Case Problem


Ambitious Volkswagen
Although Volkswagen had weak performance Winterkorn sees a history-making opportunity.
in the United States market for many years, Winterkorn contends that by 2018 Volkswagen
the company announced its goal of doubling will pass Toyota. “VW saw a chink in Toyota’s
the number of vehicles it sells in the US by armor and realized they could act out their
2012 or 2013. VW wants to move from its ambitions,” says automobile analyst Stephen
niche status and become part of the mass mar- Pope. “They went for it straightaway.”
ket. At the 2010 Detroit Auto Show, Stefan Throughout the world, Winterkorn, 62, is
Jacoby, head of Volkswagen of Americas said: pressing the accelerator. VW has agreed to
“We will sell 400,000 to 450,000 vehicles in buy a 20 percent stake in Suzuki Motors to cap-
2012/13.” He added that the U.S. business italize on the rapidly growing markets of South-
could be profitable by 2013. A few years before east Asia and India. Winterkorn is hoping to
the Detroit Auto Show, Jacoby established the gain potential sales from BMW and Mercedes,
goal of selling 1 million vehicles annually by committing $11 billion over the next three yeas
2018, with 800,000 sales from the Volkswagen to the development and manufacture of Audi,
brand, and 200,000 from the Audi brand. the luxury brand of Volkswagen.
Volkswagen is Europe’s largest automobile In terms of doubling U.S. sales, Winterkorn
manufacturer. VW’s mediocre performance in predicts that Volkswagen can entice customers
the U.S. market had been attributed in part to from Toyota, Honda, Ford, and others by sell-
its product line which does not fit well with the ing Americans on German engineering and
American auto preferences. “Volkswagen has style at reasonable prices. In 2010, VW intro-
neither a premium brand like Mercedes, nor a duced a compact sedan priced to compete with
mass-market brand,” said Marc Tonn, a senior cars such as the $16,000 Toyota Corolla. “We
automobile analyst. “The company was kind of have to bring the masses to VW,” says Mark
stuck in the middle.” Barnes, VW’s U. S. chief operating officer.
Volkswagen’s ambitious goals were made Competing against Toyota won’t be easy
public in 2008 when CEO Martin Winterkorn despite the company’s embarrassing recalls in
said that he was determined to surpass Toyota 2010. Above all, Volkswagen sells fewer vehicles
to become the world’s biggest automaker. At in the U.S. than Subaru or Kia and has a repu-
the time, the German automaker sold 3 million tation for making undependable, pricey vehicles.
fewer vehicles that Toyota, was losing market In Southeast Asia where Toyota dominates, the
share in the U.S., and had a reputation for var- VW brand has very little recognition. The same
iable quality. Toyota, then poised to pass Gen- problem exists in India. Winterkorn’s goal to
eral Motors as the best-selling car maker on the double Audi sales in the U. S. by 2018, mean-
planet, appeared invincible. while, isn’t troubling BMW. “They have been
Toyota became vulnerable in 2010 because of saying that for years,” says Jim O’Donnell, pres-
massive recalls about safety features. At that ident of BMW of North America.
point Winterkorn’s ambitions seemed less pre- In the summer of 2007, Winterkorn and the
posterous. November 2009 was a milestone for Volkswagen board met to brainstorm ways to
VW, because for the first time the German auto- become the world’s largest automaker. A key
maker built more cars than its Japanese rival. agenda-item was repairing VW’s American

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
72 CHAPTER 2 International Management and Cultural Diversity

l 2-A Case Problem


problem. That year, VW forecast sales of 200,000
cars in the U.S., a 40 percent drop from 2000.
2. Which success factors for international com-
merce does VW appear to be following?
Even worse the sales forecast was a third of 3. Which success factors for international com-
what VW sold in 1970 when the Bug and Bus merce does VW appear to need to strengthen?
were Hippie favorites. Jacoby says executives at
Source: David Welch, “The Transformer: Why VW Is the Car
the meeting laid out three choices: They could
Giant to Watch,” Business Week, January 28, 2010, pp. 44–46;
continue to lose considerable money selling cars Kyle James, “VW Announces Big Expansion Plans for US
that were too small and too expensive, they could Market,” Deutsche Welle (www.dw-World.de), January 1, 2010,
surrender, or they could take the offensive. They pp. 1–2; Matthew Barakat, “Volkswagen Outlines Plans for
Growth in U.S., Sees Opportunities in Clean Diesel,” The Asso-
chose option No. 3. ciated Press, March 7, 2008.
Discussion Questions
1. What suggestions might you offer Volkswa-
gen for gaining more market share in the
United States?

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Case Problem 73

l 2-B

Flippant Jessica
Case Problem

Jessica, age 26, is a consumer loan associate at a in recent months with respect to her dealings
large downtown branch of First Street Trust. with people 50 and older, as follows:
Her expertise centers on processing loans for
• I received an e-mail from a retired customer
vehicles, boats, large home appliances, and fur-
who said you referred to her as ‘Granny’
niture. Jessica hopes to soon be promoted to a
about four times while she was completing
loan officer and then perhaps a bank manager
a loan application.
several years later. The loan applications she
• Bill Gordon, our head teller, told me that
works with come through hand-written forms
you said he should receive a Silver Dinosaur
at the bank as well as in digital form from the
award because he reads a newspaper at lunch
bank’s many retail partners.
and during breaks.
First Street Trust is almost 100 years old, but
• Nancy Mets, our office supervisor, informed
it is thoroughly modern in its business processes
my by e-mail that you refer to her as Ms.
and human resource management policies. For
Depends because she prefers e-mail over IM
more than ten years First Street has been work-
or texting.
ing hard to achieve a diverse workforce that
• Nick Jackson, our head custodian, came to
matches its customer base. First Street manage-
me one day shaking his head because you
ment has placed considerable emphasis on hir-
asked him if he had any stories he could
ing older people and men and women of
share with you from his combat days in
different races and ethnic groups because the
World War II.
majority of its customers are 50 years or older.
During a recent performance evaluation, Jes- Looking bewildered, Jessica said, “I’m sorry if
sica’s manager Cindy informed her that she was I hurt anybody’s feelings. It’s like some of these
doing an above-average job in terms of carrying older people can’t take a joke. I never complained
out her duties as a loan associate, including when Bill or Nick call me ‘young lady.’”
the evaluation of loan risks. Cindy, however, Cindy then said, “You need to change your
expressed concern about how well Jessica was attitude. Or maybe we should send you to diver-
working smoothly and cooperatively with older sity training. I’ll let you know my decision soon.”
coworkers and customers.
“Are you serious?” said Jessica. “I get along Discussion Questions
great with baby boomers and people who are 1. What actions do you recommend that Cindy
even older. It’s just that I have a great sense of take to help Jessica relate more effectively to
humor.” baby boomers and older coworkers and
“I think that perhaps your sense of humor customers?
could be interpreted as sarcasm and flippancy 2. What steps do you recommend that Jessica
at times,” said Cindy. take to modify her age-related jokes? (Or, is
“No way,” said Jessica. “I’ve got a kind Cindy being too picky?)
heart.” 3. What impact might Jessica’s behavior have
Cindy then proceeded to present four exam- on the diversity climate at this branch of
ples of complaints she had heard about Jessica First Street Trust?

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Case Problem 147

l 4-A Case Problem


The Blue Ocean Strategy Team
A group of middle managers sat in a comfort- markets already being served. We have to invade
able conference room overlooking Lake Super- new markets, maybe even create a market.
ior. All five were impressed by the technology in “Whoever thought 40 years ago that people
the room, the furniture, and the refreshments. would walk around listening to a device that
At 8:30 A.M. the meeting began, and team could store 1,000 tunes? Whoever thought peo-
leader Laura spoke first. ple would pay for a package delivery service
“We all know why we are here. Baxter, our that competed with a government-backed
CEO, has fallen in love with Blue Ocean Strat- postal service? Whoever thought people would
egy after reading the book and attending a con- want to read books, magazines, and newspapers
ference. He thinks our conglomerate is too on a device that looks and feels like the old
conventional. We go after markets in which Etch-A-Sketch toy?”
we can compete successfully and earn a decent Bruce commented, “You are saying that as the
profit in practically all of our divisions.” Blue Ocean Strategy team, we have to identify a
Team member Ken asked, “So what’s wrong multimillion dollar market space that no other
with being successful? What’s wrong with turn- company is serving right now. The world already
ing in good profits quarter after quarter and has millions of products and services being
seeing our stock price rise year by year?” offered. How will our humble team identify a
Her pupils widening, Laura said, “What’s market of value that does not already exist?”
wrong is that we are competing in the Red Laura said, “I don’t know how we will find
Oceans where the sharks are attacking each our Blue Ocean Strategy, but I do know that
other and the other fish. Baxter wants us to Baxter wants our report in 30 days. We will
compete in market space that does not already meet for four consecutive full-day sessions on
exist. We should be creating a new demand and Thursdays to get the job done. We probably
then filling that demand. Baxter wants us to will be communicating with each other between
come up with some Blue Ocean ideas that he the meetings also.
will then consider.” “Let’s get to work right now.”
“I get it,” said Carmen. “We should stay in
the profitable markets our various divisions Discussion Questions
already serve. At the same time, we should get 1. What approaches would you recommend the
into new markets that nobody is serving. How Blue Ocean Strategy team use to identify new
about making battery-operated microwave market space for the conglomerate?
ovens that will work on the moon? In a few 2. How realistic is it for Baxter to delegate the task
years, we might have loads of private citizens of finding a Blue Ocean Strategy to a group of
taking trips into outer space.” middle managers? Explain your reasoning.
“Great sense of humor, Carmen,” responded 3. What do you think would be the effectiveness
Donté, “but the demand might be too small.” of using the Internet to develop a Blue Ocean
Laura then clicked open a PowerPoint slide Strategy for the team? For example, why not
listing the 58 products and services the com- go to Ask.com and enter the question, “What
pany already provides. She told the group, would be a new market space with no
“Baxter says we should forget about these competition?”

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
148 CHAPTER 4 Essentials of Planning

l 4-B Case Problem


What Should Dell Do Next?
Chris Conroy works at a publisher of scientific stores. Yet the company has one retail store to
journals in Washington, D.C. He first logged display products (but not sell them), and oper-
on to Dell Inc.’s Web site to browse personal ates more than 170 kiosks in malls around the
computer offerings online. His laptop was dying country, where consumers can see and order a
quickly and the 31-year-old figured buying a PC selection of Dell products.
on the Internet and getting it shipped home At the same time, rivals such as H-P and
would take too long. Apple Corp. have charged ahead in the con-
Conroy went to a consumer electronics store, sumer PC market. In particular, H-P cut costs
which doesn’t stock any Dell computers. There, to become competitive with Dell, began work-
he checked out several laptops before snapping ing more closely with retailers, and redoubled
up a Hewlett-Packard Co. model. “I could get its marketing efforts. As Dell cut prices, H-P
my hands on it right then, without having to invested in consumer-friendly features on its
worry about it being shipped,” he says. notebooks.
Conroy’s experience signals a fundamental Early in 2006, Dell expanded more slowly
problem facing Dell. For years, Dell—famous than the overall U.S. PC market for the first
for selling products directly over the phone and time in more than a decade. Consumers make
Internet—was a dynamo thanks to bulk sales to up about 30 percent of H-P’s sales, in contrast
corporations, mostly of desktop computers. Its to 15 percent of Dell sales. In 2007, Dell began
direct-sales business model made the Round scrambling to contain the damage. It has over-
Rock, Texas, company a widely admired para- hauled its Web site and streamlined its pricing,
gon of efficiency as it under-priced rivals such and has introduced a new consumer advertising
as H-P and Gateway, Inc. (now part of Acer campaign with the tagline “Purely You.” One
Computer). of Dell’s acquisitions was Allenware Corp., a
But in the past few years, buying behavior in maker of high-end videogame PCs. The com-
the PC world has changed. Much of the growth pany has said that deal, which boosted its offer-
has come from consumer demand rather than ings for consumers, was personally pushed by
the business market on which Dell focused. Michael Dell.
What’s more, people looking for a new home In 2007 Michael Dell returned to his CEO
computer are increasingly turning to laptops role, taking over after releasing CEO Kevin
and netbooks. There Dell is particularly weak Rollins. Later that year Dell began selling
(according to some observers): its models lack $700 desktop computers at 3,400 Wal-Mart
the pizzazz and features of its rivals. For lap- Stores.
tops, especially, consumers prefer to hold and The desktop market began cooling a few
test models in a store; Dell computers are not years ago as many companies slowed the pace
sold in stores. of upgrading their computers. Meanwhile, con-
Dell still considers consumers an important sumers gravitated to laptops as prices fell and
market. The company has poured money into new wireless technology made them more useful
corporate products such as printers, storage sys- at home and on the go. While corporate
tems, and computer servers. It declined some demand focused on replacing the desktops
overtures from retailers to sell its wares in employees already had, consumers were adding

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Case Problem 149

l 4-B Case Problem


second, third, and fourth computers at home as
mom, dad, and the kids listened to digital
as-a-service applications and remote manage-
ment tools.
music, shared digital photos, and played By 2009, Dell had been restructured to inten-
games. By 2010, consumers were buying more sify its focus on customers. The four customer
laptops than do corporations. groupings on the organization chart became
In late 2004, the profitability of Dell’s con- consumers, corporations, mid-size and mod-
sumer business began deteriorating. Dell told size businesses, and government and educa-
Wall Street its competitors were cutting prices tional buyers. Seven of Michael Dell’s direct
to gain market share at the expense of profit, reports were recently appointed. The company
and said its focus was the high-end PC con- had branched into information technology and
sumer. But Dell was also participating in a maintenance services, software, and new hard-
price war, dropping its prices as low as $299 for ware categories including smart phones and
desktops. tablet-style computers.
Dell rolled out some new products to woo Rumors had it that Dell was preparing to
consumers. In October 2004, it released its first add social networking features as well as
plasma-screen television sets, a digital music music and video services to Dell.com. Michael
player, and a new photo printer with a built-in Dell wanted to create a profitable consumer
display to preview photos. But many consumers business with designs as appealing as those of
were wary about buying some of these products Apple or HP. Retail sales, including products
sight unseen from a company not known as a sold at Wal-Mart stores, reached about $6 bil-
consumer electronics maker. lion by 2010. By then, the consumer unit
In May 2006, the company pledged $100 mil- accounted for nearly 25% of Dell’s revenue,
lion to improve the “customer experience” and but only 3% of its profits. The consumer pro-
hired more than 2,000 new U.S. sales and sup- ducts group therefore decided to hold back on
port staff. It has since added another $50 mil- expansion, and focus on cost control.
lion to the effort. Internal Dell data show that By 2010, Dell returned to its marketing tactic
its efforts are reducing call volumes and call of discounting in order to win business. Among
transfers for customers. the beneficiaries of the discounting was the
In 2008, Dell released a plan for several years Indiana Office of Technology that operates
ahead. Company representatives outlined sev- more than 25,000 Dell desktop computers for
eral actions to reduce total product costs across state employees.
all areas, including design, manufacturing and Dell said that he welcomed the challenge to
logistics, materials, and operating expenses. prove that he could found an exceptional busi-
Dell was looking to accelerate growth in five ness and then come back in to revive a business
areas—global consumer, enterprise, notebooks, that started to struggle. Dell also admitted that
small and medium enterprise, and emerging he stuck with the innovative idea of selling com-
countries—while improving profitability and puters directly (Internet and phone) for too
cash returns. A specific part of the growth strat- long. He added, however, “We’re going to be
egy was to assist customers with their IT infra- stronger, faster, and more hyper than we’ve
structure. This included delivering, over the ever been. It you don’t believe, then just sit
Internet, the integration of software- back and watch.”

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
150 CHAPTER 4 Essentials of Planning

l 4-B

Discussion Questions
Case Problem
4. How has the transformation of Dell worked
1. Identify several business strategies Dell has out as of the present?
used so far, including the strategy that
made the company famous. Source: Christopher Lawton, “Consumer Demand and Growth in
Laptops Leave Dell Behind,” The Wall Street Journal, August 30,
2. Suggest a plan to Dell executives for continu- 2006, pp. A1, A9; Cliff Edwards, “Dell’s Do-Over,” Business
ing its past successes into the future. Week, October 26, 2009, pp. 036–040; Nick Zubko, “Dell Inc.:
3. What is your opinion of the quality of Dell Writing a New Program,” Industry Week (www.industryweek.
com), June 26, 2008; Justin Scheck, “Discounting Continues to
desktops and laptops based upon what you Haunt Dell as Its Turnaround Struggles,” The Wall Street Journal,
have observed personally and what people in February 19, 2010, p. B1; Daisuke Wakabyashi, “Dell Unit Hunts
your network have said? for Cost Cuts,” The Wall Street Journal, April 28, 2010, p. B4.

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Case Problem 189

l 5-A Case Problem


What to Do with All These False Emergency Patients?
During her twenty-minute rest break at 3 A.M., that evening and she wanted to know
Sue Abrams, M.D., rolled her eyes when Ken whether her binge drinking had harmed the
Raskins, a hospital administrator, asked her fetus.
how she was doing. “It’s real nice of you Ken, • A young guy came in with a swollen hand.
to drop by the emergency room to get a feel for He said he got so mad that he hit the door
what life is like in the trenches,” said Sue. in his apartment; he wanted to know what
“You know it. The emergency room doctors he should do for his hand.”
and nurses know it. And the rest of the ER
Ken said sympathetically, “I understand that
medical and support staff know it. We’ve got
from a medical standpoint these types of visits
the same enormous problem in our ER that is
to the ER seem unwarranted. Yet a lot of peo-
sweeping the country. The ER has lost most of
ple do not understand what constitutes a true
its original purpose, and the change is choking
medical emergency.”
the staff.”
Sue retorted, “Yet we still have a critical
“I think I know what you’re getting at,” said
problem. We are clogging our ER beyond lim-
Ken. “But please give me an update on the
its. It’s gotten to the point where it is difficult to
problem so I can take it up with the senior
find nurses, nurse’s aides, and physician assis-
administrators.”
tants who will work in our ER.”
“Stated simply,” said Sue, “I estimate that
Ken finished the conversation by saying,
only about one-third of the patients who come
“You are right Sue. We’ve got to do something
to the ER are facing a real emergency. They are
with all these false emergency patients. I’ll get
using the ER for such reasons as avoiding hav-
this problem on the hospital administrator’s
ing to visit a doctor during the day, or simply to
agenda. Most likely, we’ll ask you and other
get treatment for a minor illness or injury.”
ER staff to provide some input. That’s provid-
“I’m listening, and I’ll take a few written
ing you have enough energy left to attend a
notes,” responded Ken. “Can you give me a
meeting.”
few specifics?”
“Okay,” said Sue with a sigh of exasperation. Discussion Questions
“I’ll give you a handful of examples before I have 1. What is the problem facing the ER staff in
to get back to the next hypochondriac in the ER. terms of the discrepancy between the ideal
• A mother brought in her two children with and actual conditions?
ordinary colds. She told me she thought her 2. How might the hospital staff go about resolv-
children were dying from the swine flu. ing the problem or problems described by
• An older man said he wanted to be treated Sue Abrams?
for a stroke because he felt a twitching over 3. For what reasons should the ER staff and the
his left eye. hospital administrators care if some of the
• A pregnant teenager came in with her boy- visitors to the emergency room are really
friend. She said she had a six-pack of beer not experiencing an emergency?

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
190 CHAPTER 5 Problem Solving and Decision Making

l 5-B Case Problem


Staples’ Invention Quest
Henry Ford. Thomas Alva Edison. Adrian in the market place,” Chernoff said. “The prod-
Chernoff. Adrian Chernoff? Maybe Chernoff uct is going into practice in the real world.”
isn’t a household name like the first two inven- Maybe an extra-large rubber band with a
tors, but the 33-year-old Royal Oak, Michigan, wear-and-tear-resistance label won’t solve the
man certainly shows potential. Chernoff’s claim world’s problems. But Rubber Bandits do
to fame—a handy little office product called make it easier to bundle and label piles of
Rubber Bandits—started gracing the shelves of paperwork. And it definitely makes a nice
every Staples store in North America a few workplace projectile, although Chernoff says
years ago. The labelling bands, which retail at that was not its original purpose.
$2.99, also have their own Web site and can be Chernoff centered his career on creativity.
purchased online through Staples. In addition to a bachelor’s degree and two
The General Motors Corp. employee was master’s degrees from the University of New
one of the finalists in an annual Staples’ Inven- Mexico (in business and engineering), his
tion Quest. The contest is part of a broad effort résumé includes jobs working on robots for
by Staples to develop an exclusive product line the National Aeronautics and Space Adminis-
to distinguish its private brand from those of tration and designing new rides for The Walt
competitors. Inaugurated several years ago, Disney Co.
the contest is aimed at budding inventors look- Rubber Bandits popped into his mind on a
ing to create the next Post-it note or better. shuttle bus ride between Denver and Boulder,
About 10,000 entries are received annually. In Colorado, where he was visiting a brother. He
recent years, school children have been involved started pondering office efficiency and the pro-
in the contest. Besides giving inventors the grat- blems people have of losing things in the shuffle.
ification of seeing their ideas hit the shelves in Discussion Questions
1,600 office superstores, Staples promises to 1. Why should Rubber Bandits be classified as
share the profits. Winners of the contest receive a creative idea?
$25,000 and as much as an 8 percent royalty 2. What does this story illustrate about how cre-
have. One year’s winner was a California man ative ideas surface?
who created WordLock, a combination lock 3. In what way might having studied both busi-
that allows users to select their combinations ness and engineering helped Adrian Chernoff
using letters rather than the traditional set of become an inventor?
numbers.
Chernoff walked away with $5,000, a licens- Source: Karen Dyris, “Staples Hunting for Next Wave of Ideas,
ing agreement with the office-supply store, and Inventors,” Detroit News syndicated story, May 10, 2005; Wil-
liam M. Bulkeley, “Got a Better Letter Opener? Staples Solicits
the official title of inventor. “The best part for Inventive Ideas from the Public for Products It Can Sell Exclu-
me right now is seeing it actually make its way sively,” The Wall Street Journal, July 13, 2006, pp. B1, B6.

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
260 CHAPTER 7 Job Design and Work Schedules

l 7-A

The Sub Shop Blues


Case Problem

Serge runs a profitable chain of five rapid- hour. We are also being more generous about
service restaurants that sell submarine sand- allowing employees to make their own subs to
wiches, non-alcoholic beverages, and related eat on premises or take home.
snacks such as potato chips and pretzels. Cus- “So far these two initiatives haven’t had
tomers either take out the sandwiches or eat much of an effect on reducing turnover.”
them on the restaurant premises. “Serge’s Asked what reason workers give for leaving,
Subs” also caters to local businesses for luncheon Serge answered. “Sometimes a worker will say
parties and to homes for sports gathering. that he or she needs more money. Sometimes
Asked to identify his biggest management the answer is that school has become too
challenge, Serge replied, “Keeping good demanding. Sometimes a senior person will
employees. Most of our workers are part- say that he or she finds the work too physically
timers. Some are students, some are older peo- demanding, especially standing up all the time.
ple. Most of them want part-time employment. “But the biggest complaint I get is that the
Making a submarine sandwich may look easy, work is boring. Instead of thinking of preparing
but there is skill involved. For example, you a sub as a work of art, a lot of the guys and gals
have to remember what the customer asked for. say that the work is boring. Once you’ve pre-
A beginner might ask the same question a few pared a hundred sandwiches, they’re all the
times about what the customer wants on the sub. same.”
“It takes a few weeks for a sub maker to get “So far, I haven’t figured out how to make
sharp, and to move quickly enough to take care the job of our basic worker more interesting.”
of a surge in orders, like Friday lunch.
“The problem is that too many of the good Discussion Questions
sub makers leave after a couple of months. My 1. How does this case relate to job design?
store managers have to keep finding and train- 2. What recommendations might you offer
ing new employees.” Serge for making the position of sub shop
Asked what he and his managers have preparer more satisfying?
attempted so far to increase retention, Serge 3. What else can Serge do to find out what is
replied, “We tried increasing pay 15 cents per lacking in the job of sub shop preparer?

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Case Problem 261

l 7-B Case Problem


The Telecommuting Challenge on commuting improved the quality of their
lives; and at least one dozen employees said
at Broadbent Distributors they enjoyed contributing to a green environ-
ment by spending less time on the road.
Margot is the vice president of administration at
Despite the praiseworthy comments from the
Broadbent Beverages, a bottler and distributor for
telecommuters, several middle managers and
approximately 25 beverage companies. Much like
supervisors began to complain about the
the bottling companies for the best-known soft
work-at-home program. Dan, the director of
drink manufacturers, Broadbent does much of the
accounting, complained, “I may be old fash-
behind-the- scenes work, such as bottling, packag-
ioned, but I don’t consider my accounts receiv-
ing, and shipping beverages.
able specialist really working when she spends
As more beverage companies are doing their
Friday morning at Starbucks poking at her lap-
own bottling and distribution, and profit margins
top. If she were in the office, she would be pro-
are getting thinner, Margot and other Broadbent
cessing a lot more invoices.”
executives have been looking for ways to trim
Midge, the marketing manager, said, “I want to
costs. One cost-cutting measure Margot proposed
get together a group of reps so we can brainstorm a
about one year ago was to expand its telecommut-
complex customer problem. But there’s only one
ing program. She calculated that the company
rep on the premises, so I have to schedule the
could reduce office space by 25 percent if just
brainstorming session for a later date. This same
10 percent more workers did not require perma-
problem has happened to me a few times.”
nent office space. The telecommuters could work
Cal, the dispatching supervisor, expressed his
from home about four days per week and share
concerns about telecommuting in these words:
much more limited space on their day in the office.
“With half the dispatchers away from the office
Margot also explained to other Broadbent execu-
at a given time, it is tough to solve simple pro-
tives that the company would most likely enjoy
blems. Instead of just walking down the hall to
productivity gains from the telecommuting
iron out a small problem, we have to exchange
program.
dozens of e-mails, or make dozens of phone
In collaboration with other executives and
calls. It doesn’t feel like our department is part
middle managers, Margot developed a list of
of a real company any longer.”
positions eligible for telecommuting: accounts
Margot made note of all the positives and
receivable specialist, business development
negatives said about the telecommuting pro-
representatives, benefits specialist, purchasing
gram and decided to dig into the problem
manager, and truck dispatcher. Workers who
later in the week.
volunteered to telecommute would be given
the opportunity, yet no workers would be Discussion Questions
forced to telecommute. 1. Explain the extent to which you agree with
Thirty-one employees volunteered for tele- the complaints about telecommuting.
commuting at first, and within six months, 42 2. How fair is the assessment of Midge and Cal
employees were telecommuting at least two that group problem solving is made more dif-
days per week. The telecommuters themselves ficult when workers are telecommuting?
had good reports about their experience. Sev- 3. What advice can you offer Margot to have a
eral talked about their work lives being less telecommuting program better accepted by
stressful; many agreed that cutting back a little the managers?

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
342 CHAPTER 9 Human Resource and Talent Management

l 9-A Case Problem


The Scrutinized Job Candidates
Kelly is a partner at a recruiting firm in Chi- about the way the candidate drives. A candi-
cago, Illinois. She explains that a job candi- date who drives beyond the speed limit or
date’s behavior comes under careful watch the races through yellow lights is regarded as possi-
moment he or she arrives at the placement firm. bly irresponsible. On the other hand a candidate
“We use whatever data we can to build a por- who drives too slowly might be perceived as too
trait of you.” cautious for a job requiring high imagination.
The receptionist notices whether you are Kelly has observed that a few candidates will
using your cell phone to make calls and send swear at other drivers who cut them off or wait
and receive text messages. We also look to see too long to start driving when the light turns
if you are scrolling through apps on your smart green. She regards such behavior as reflectting
phone rather than reading the employer’s poor emotional control.
annual report. She may also keep tabs on your Similar with many other recruiters, Kelly
hygiene habits, such as whether you sneeze into asks the receptionist how she was treated by
the air instead of a handkerchief or facial tissue. the candidate. She notes, “One time we imme-
Suppose a candidate is escorted to an inter- diately disqualified a candidate because he
viewer’s office door, and the candidate marches started ordering the receptionist around.
right in even though the interviewer is involved Offered a soft drink, he insisted on a fresh
in a call. Kelly thinks that’s a faux pas, with it fruit drink. Later, he asked the receptionist to
being better to wait outside the office until the bring up the MSBN Website on her desktop so
call is completed. After you get started with the he could check the stock market results.”
interview, and you peek at your smart phone
from time to time, you can appear socially Discussion Questions
inept. Kelly says that several times in recent 1. How fair is it for the recruiters described here
months, aspiring vice presidents have pulled to reject candidates because they display
out smart phones during interviews with one poor manners, such as receiving e-mail mes-
of the partners at the placement firm. The can- sages during the job interviews?
didates were told sternly that it was time to shut 2. Of what significance is it if the candidate who
down their device. It is better to check on a is waiting scrolls through applications on a
work crisis before and after the interview. smart phone instead of reading the company
Kelly will often suggest that candidates take annual report?
their car to a restaurant for lunch because the 3. How valid is Kelly’s belief that the way a
car is parked nearby. First Kelly observes the person drives is related to job performance
cleanliness of the vehicle both inside and out. in aspects of a job that does not involve
When a vehicle looks like a Dumpster on the driving?
inside or is excessively dirty on the outside, 4. What lessons do these recruiters have for
she assumes that the candidate is sloppy and graduates seeking entry-level technical and
disorganized. Kelly, as well as the other part- professional jobs?
ners in the firm, also makes a few inferences

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Case Problem 343

l 9-B Case Problem


Performance Rankings at Portland Events Planners
Rob is the founder and owner of Portland bution. I will also give a rating, so the maximum
Events Planners, a company that plans events rating anyone could have would be 60, a score of
for a wide variety of companies in and around 10 from each of the six raters. The minimum
the Portland area. The events include trade score you could receive would be a six. I will
shows, product demonstrations, business con- allocate salary increases based somewhat on
ferences at hotels, and videoconferences. A the results of the evaluation. What do you
staff of five professionals performs the activities think, gang? I want you to react one by one.”
necessary for selling the company’s services to The five staff members of Portland Event Plan-
businesses and for doing the event planning. ners reacted as follows:
Rob is involved in the same activities of obtain- Linda: “I like the system because it is objective.
ing new business and event planning. The six Of course, the ratings tell us nothing about
professionals are assisted by an administrative what each of us is doing right or wrong.”
staff of four people. Tom: “Rob, I like the idea of peer input. But
After five years of operation without one, I’m afraid that your ratings will simply reflect
Rob decides that it is time to implement a for- how much we like each other. So, I’m expect-
mal performance evaluation system. After ing to receive 59 points.” [Laughter from the
studying the idea of performance evaluation team.]
and speaking to a talent management profes- Kitty: “I see some good things about this new
sional in his network, Rob decides that most system. The system seems objective because we
performance-evaluation systems are too top- wind up with numerical ratings. But the system
down. He thinks that he would like a more is really subjective; you will not be making
democratic system of performance evaluation, salary decisions based on tangible, measured
particularly because the staff work closely accomplishments.”
together as a team. Rob decided on a perfor- José: “I disagree with Kitty. Most of our sales
mance evaluation method that focused on and our planning is really a joint effort. It is
each team member rating the contribution of difficult to pin down who among us really
all other team members, supplemented by his accomplished what on his or her own. I’d say,
own rating. let’s give the new system a chance.”
Next, Rob sent an e-mail to all staff mem- Laura: “Rob, I see some merit in this system.
bers explaining his evaluation system. The But before endorsing it, I want your assurance
e-mail was followed up by a staff meeting to that you will sit down with us one by one and
discuss the new system before its implemen- discuss the ratings. I think you should also give
tation. Rob began the meeting with a brief each of us your personal feedback.”
explanation: With a reflective look, Rob replied, “I’ve
“As described in my e-mail, the new evalua- really learned a lot this morning about your
tion system is quite simple. Each of you will high level of professionalism and your interest
anonymously rate the contribution of each in performance evaluation. Let me think about
staff member to our company’s success on a what you have told me, and I will get back to
1-to-10 scale, with 10 indicating a super contri- you.”

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
344 CHAPTER 9 Human Resource and Talent Management

Discussion Questions 3. Considering the nature and size of Portland


1. What is your evaluation of the system of per- Events Planners, what type of performance
formance evaluation Rob is proposing? evaluation system do you recommend Rob
2. Explain which two suggestions from the team implement?
members you think are the most valid.

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Case Problem 385

l 10-A Case Problem


Michelle Rhee Makes Waves in D.C.
Michelle Rhee took over responsibility for the run their company by committees. Why
144 schools in Washington D.C. in June 2007, should we run a school district by committee?
when Mayor Adrian Fenty appointed her The bottom line is that in order to run an effec-
Chancellor, District of Columbia Public tive organization, you need one leader who
Schools. Her appointment stunned people con- has clear vision for what needs to happen
nected with the D.C. school system. Age 37 at and the authority to make that happen.
the time, Rhee had no experience running a Firing Employees: We had to conduct a reduc-
school. The challenge seemed overwhelming tion in force of about 500 employees in the
with 45,000 students who collectively ranked district. And that included about 250 or so
last in math among 11 urban school systems. teachers. We made the decision that we were
Within two years of becoming chancellor, Rhee going to conduct the layoffs by quality, not by
was hated by teachers and feared by principals. seniority. It caused this firestorm. From a man-
When invited to interview for the position, Rhee agerial standpoint, it would make no sense to
was running a nonprofit organization called the do a layoff by seniority only. In a school district
New Teacher Project, which helps schools recruit that is struggling as hard as ours is, we have to
good teachers. Rhee, who is Korean-American, be able to look at the quality and value that
was from Ohio, rather than Washington D.C., different employees are adding.
and she was interviewing for a position in a major- Rhee recognizes that she has been often
ity African-American city. She now says, “I was the criticized, but she suggests that some ruth-
worst pick on the face of the earth.” However, lessness is required. “Have I rubbed people
Rhee was once an elementary teacher in Baltimore; the wrong way? Definitely. If I changed my
that experience taught her that good teachers could style, I might make people a little more com-
alter the lives of children. fortable” she says. “But I think there’s real
Two years after Rhee’s appointment, test danger in acting in a way that makes adults
scores released by the U.S. Department of Edu- feel better. Because where does that stop?”
cation showed that Washington’s fourth- Money for Nothing: We spend more money
graders made the largest gains in math among per child in this city than almost any other
big city school systems during a two-year urban jurisdiction in the country, and our results
period. Rhee has replaced ineffective principals, are at the absolute bottom. So it goes against the
laid off teachers based on “quality, not by idea that you have to put more money into edu-
seniority,” and shuttered failing schools. cation, and that’s how you are going to fix it.
Some of Rhee’s thinking about her role as chan- It comes down to two basic things about why
cellor is revealed in her comments in relation to we spend so much money and the results aren’t
several aspects of her work, as described next. as good. First is a complete and utter lack of
accountability in this system. And the second is
How to Lead: I often get in trouble for saying
a lack of political courage on the part of most of
this, but I actually think it’s true—that collab-
the people who are running cities and school
oration and consensus building and all those
districts.
things are quite frankly overrated. No CEOs

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
386 CHAPTER 10 Leadership

We have a system in which you could have Discussion Questions


been teaching for 25, 30 years. Every year, you 1. Identify three leadership traits in which
could actually take your children backward— Michelle Rhee scores high or low and cite
not just not improve their learning as much as your evidence.
you should, but your kids can move backward in 2. What recommendations can you offer Rhee
your classroom every year—and you will con- to help her become an even more effective
tinue to have a job. You will continue to get your leader?
step raise. You will continue to get your negoti- 3. How would you classify Rhee’s leadership
ated union increases. Where else can that hap- style, using one or more of the styles pre-
pen, except in public education? So that lack of sented in this chapter?
public accountability is a significant problem. 4. Assume that Rhee held a leadership position
And then on the courage part, I think that in your field of interest. Explain whether you
when you’re talking about making the difficult would enjoy working for her.
decisions that are necessary in this climate—
Source: The opening facts in the story are from Amanda Ripley,
closing schools, firing teachers, removing prin- “Can She Save Our Schools?” Time, December 8, 2008, p. 36.
cipals, et cetera—those are the things that make The quote about ruthlessness is from p. 40 of the same article.
most politicians run for the hills because it “Who’s Got Michelle Rhee’s Back? The Wall Street Journal (edi-
makes your phone ring off the hook and people torial), December 14, 2009. p. A24. The interview comments are
from Michelle Rhee, “An Educated Work Force,” The Wall
are saying oh, don’t close this school, don’t fire Street Journal, November 23, 2009, p. R3.
this person.

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Case Problem 387

l 10-B Case Problem


Is Julia Too Empowering?
Julia is the director of the municipal bond care what was happening. The manager said,
group of a financial services firm. Julia has “I recently asked Julia’s advice about finding
four managers reporting to her, each of whom a good contact who could introduce me to the
supervises a unit of the group: retail sales, insti- pension fund manager of a hospital. Julia told
tutional sales, customer service, and internal me that a big part of my job was to develop
administration. contacts on my own.”
Laura, the branch director and company The second manager Laura spoke to said
vice president, heard rumblings that the group that she enjoyed working with Julia because
was not receiving enough supervision, so she she was a nice person who didn’t get in her
decided to investigate. During a dinner meeting hair. “I don’t need a boss to remind me to
requested by Laura, she asked Julia about her attain my goals or get my work done on time.
approach to leading the group. Julia replied: A little smile of encouragement here and there
is all I need,” the manager said.
“I am leading my four managers as if
The third manager said to Laura, “I think
they are all responsible professionals.
Julia would be a great manager for me a few
I believe in management by exception.
years down the road. But right now, I do not
Unless I am aware of a problem, I am
want to feel so much on my own. Julia is a
hesitant to get involved in how my
talented person who I could learn from. Yet
managers conduct their work. Don’t
she is more involved with customers and
forget that as the head of the munici-
higher-level management than she is with her
pal bond group, I have some responsi-
managers. I’m new in the field, so I could use
bility for spending time with major
more of a coaching style of manager.”
customers as well as meeting with
The fourth manager said, “I remember meet-
you and other senior executives. I do
ing Julia a few times, but I don’t remember
hold a weekly meeting, and conduct
much about her. You said she is my manager?
my annual performance reviews as
I don’t care if my comments get back to her,
required.”
because I’m joining a competitor next month.”
Laura thanked Julia for having attended the
dinner, and said that the meeting was informa- Discussion Questions
tive. With Julia’s permission, Laura said that 1. To what extent has Julia chosen the right
she would be visiting the municipal bond approach to leading the managers in her
group to have a few casual conversations with unit of the financial services firm?
the four managers. 2. What advice can you offer Julia to be a more
When asked about Julia’s leadership, the first effective leader?
manager said his nickname for Julia was Macro 3. What advice can you offer Laura to help
Julia; instead of being a micromanager, she Julia be a more effective leader?
went to the other extreme and was a macroma- 4. Explain whether you think Laura was justi-
nager who had minimal contact with the group. fied in asking Julia’s direct reports about
He added that at times Julia didn’t seem to even Julia’s approach to leadership.

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
424 CHAPTER 11 Motivation

l 11-A Case Problem


We Need More Engagement Around Here
Peggy Bates is the CEO of a regional HMO employees not being totally engaged in our
(health maintenance organization) with 25 efforts. Yet, I cannot understand why. Taking
local offices serving business and nonprofit care of people’s health is one of the most impor-
organizations. The competition for business tant responsibilities in the world. I mean, we are
has become more intense in recent years as often increasing life span as well as saving
organizations continue to look for ways to lives.”
reduce costs for medical and dental insurance. Melissa Mitchell, director of human
A particular concern is that a given company resources, said: “Jerry, from your point of
might shift to another HMO if that healthcare view, you are correct. Healthcare is a noble
provider can offer lower costs. undertaking. Yet when a person is seated at a
Peggy expressed her concern at a meeting keyboard and terminal for eight hours proces-
with the management staff in these words: “I sing claims, he or she might not feel like an
think our HMO could provide better service angel of mercy.
and lower costs if our employees put in more “We can speculate all we want about how
effort. A lot of the employees I have seen are well our employees are engaged and motivated,
so laid back, and almost indifferent. They don’t and what we should do about the situation. I
seem to have a sense of urgency. propose that we get some data so we can learn
“I don’t think that by simply downsizing the more about the nature of the problem we are
company we will reduce costs. Having fewer working with. I propose we hire a human
workers to accomplish our important work resources consulting firm to conduct a survey
would just make things worse. We would get about employee engagement. It could prove to
less work accomplished, and the quality would be a good investment.”
suffer.” Peggy said with a smile, “Here I am con-
After listening to Peggy, Jerry Falcone, the cerned about our costs being too high, and
vice president of marketing, commented: Melissa makes a suggestion for spending
“Peggy, you might be right about some of our money.”

Case Exhibit: Data from Employee Attitude Survey


Question Percent Yes Percent No
1. Do you know what is expected of you at work? 72 28
2. Do you have the opportunity to do what you do best every day? 55 45
3. Do you put your full effort into the job most days? 44 56
4. Do you think your immediate boss is doing a good job? 85 15
5. Do you expect to be working for this company for at least another
three years? 34 66
6. Do you ever take work home with you (assuming you have the type of
work that can be done off company premises)? 41 59
7. In the past year, have you had opportunities at work to learn and grow? 38 62
8. How satisfied are you with your compensation (salary and benefits
combined)? 69 31

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Case Problem 425

Melissa retorted, “Peggy, I am talking about here is the meat of the study. Let’s discuss
investing, not spending money. If we could calls for action that are revealed by the data.”
boost our employee level of motivation 10 per- Discussion Questions
cent, we would get a tremendous return on 1. How bad is employee motivation and
investment.” engagement as revealed by the Exhibit?
Peggy, Melissa, and the rest of the executive 2. What actions can management take to
team agreed on hiring a firm to conduct the increase motivation?
survey. Four months later, the survey was com- 3. Should management focus on intrinsic, or
pleted and the results presented to management. extrinsic, motivators in attempting to
The consultant, Ken Hui, focused on the data enhance the motivation and engagement
presented in the accompanying Exhibit as the level of these HMO workers?
key findings of the survey. He said, “Folks,

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
426 CHAPTER 11 Motivation

l 11-B Case Problem


Justin Tries a Little Recognition
Justin is a super-franchiser for a large chain of 15 percent increases in revenues within 12
soup-and-sandwich shops. He owns twelve months.
shops in the same region, having invested $2 Two weeks after the goal-setting discussions
million to own these stores. Half of the invest- with the 12 store managers, Justin announced
ment in the stores came from inheritance and that he would be recognizing and rewarding a
investments Justin had made prior to becoming 15 percent or better increase in revenue with
a franchisor. The other half of the money was two of the following forms of recognition:
borrowed, so Justin feels considerable pressure • A wall plaque designating the manager as a
to earn enough gross profit from the stores “Store Manager of the Year”
in order to make his debt payments and earn a • A year’s membership in an athletic club for
living. the manager and a spouse or partner
Justin concluded that he needed to increase • A bonus equivalent to two percent of annual
revenues from his stores about 15 percent in salary
order to net enough profit for a comfortable • An iPad
living. He believed that his business processes • An expense paid trip for the manager and his
were good enough to make a profit, and that family for one day at an amusement park or a
the company was giving his franchise opera- theme park
tions enough marketing and advertising sup-
port. Justin also thought that his managers Justin waited for responses from his man-
were running efficient operations. He was con- agers to the proposed recognition plan. He
cerned, however, that they weren’t trying hard received several e-mail messages acknowledging
enough to achieve good customer service by an appreciation of his program, yet no burst of
encouraging the order takers at the stores to enthusiasm. Justin thought to himself, “I guess
pay more attention to customers. For example, the managers don’t understand how great it
when Justin visited the stores (or sent a family feels to be recognized for making a tough finan-
member in his place), it seemed that the order cial target. When they earn their recognition
takers didn’t smile enough or ask frequently awards, I’m sure I will see a lot more
enough, “What else would you like with your enthusiasm.”
order?” Discussion Questions
Justin decided that he shouldn’t microman- 1. What advice can you give Justin Salisbury
age by telling the store managers how to moti- about the most likely motivational conse-
vate their staffs. Yet he decided to discuss with quences of his recognition program?
his managers what he wanted—more profit by 2. What other form of recognition should Justin
doing a better job of motivating the order offer the store managers?
takers and cashiers. He also pointed out to his 3. Would it be better for Justin to have a recog-
twelve store managers that he would be reward- nition program aimed directly at the order-
ing and recognizing their accomplishments in takers and cashiers than at their managers?
boosting store revenues. After consulting with Explain your reasoning.
the managers, Justin established the goal of a

Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.

Das könnte Ihnen auch gefallen