Chapter 18 Managing Change In This Chapter, You’ll Find Chapter Overview Learning Outcomes Key Terms PowerPoint Guide Review Questions and Answers Discussion and Communication Questions and Suggested Answers Ethical Dilemma Self-Assessments—What about You? Issues in Diversity Experiential Exercises Additional Examples Case Study and Suggested Responses: CarMax, the Used Car Superstore: Learning for Performance Management Video: Profile on Holden Outerwear Cohesion Case: Part 4 Donorschoose.org: Building Toward the Future Student Handouts: Ethical Dilemma What About You?: Tolerance for Ambiguity What About You?: Applying Force Field Analysis Issues in Diversity: Changing Racial Attitudes One-Dorm Room at a Time Experiential Exercise: Organizational Diagnosis of the University Experiential Exercise: Team Building for Team Effectiveness Experiential Exercise: Crusty Rusty Case Study: CarMax, the Used Car Superstore: Learning for Performance Improvement Cohesion Case: Part 4: Donorschoose.org: Building Toward the Future (D) Chapter Overview Organizations have to keep pace with current issues related to quality, technology, diversity, globalization, ethics, and the environment. This requires managing both change and resistance to change. All organizations experience external and internal forces for change. There are numerous organization development interventions available to managers. Diagnosis and needs analysis are essential first steps in any change management effort. Learning Outcomes After reading this chapter, students should be able to do the following: 1. Identify the major external and internal forces for change in organizations.] Answer: Adaptiveness, flexibility, and responsiveness are characteristics of the organizations that will succeed in meeting the challenges that businesses face. Organizations are in a state of tremendous turmoil and transition, and all members are affected. The chapter discusses the four major external forces for change: globalization, workforce diversity, technological change, and managing ethical behavior. Pressures for change that originate inside the organization are generally recognizable by symptoms such as declining effectiveness. 2. Describe how different types of change vary in scope. Answer: Change can be of a relatively small scope, such as a modification in a work procedure (an incremental change). Change can also be on a larger scale, such as the restructuring of an organization (a strategic change). The most massive scope of change is transformational change, in which the organization moves to a radically different, and sometimes unknown, future state. One of the toughest decisions faced by leaders is the proper pace of change. In summary, researchers agree that pace of change is important, but they can’t quite agree on which pace of change is most beneficial. The individual or group that introduces and manages change in an organization is known as the change agent. Change agents can be internal, such as managers or employees who are appointed to oversee the change process. 3. Discuss methods organizations can use to manage resistance to change. Answer: People often resist change in a rational response based on self-interest. However, there are countless other reasons people resist change. Many of these center on the notion of reactance—that is, a negative reaction that occurs when individuals feel that their personal freedom is threatened. The contemporary view holds that resistance is simply a form of feedback and that this feedback can be used very productively to manage the change process. Three key strategies for managing resistance to change are communication, participation, and empathy and support. Another strategy for managing resistance is to provide empathy and support to employees who have trouble dealing with the change. 4. Explain Lewin’s organizational change model. Answer: Kurt Lewin’s model is based on the idea of force field analysis. This model contends that a person’s behavior is the product of two opposing forces: one force pushes toward preserving the status quo, and the other force pushes for change. Lewin’s change model is a three-step process. • Unfreezing—encouraging individuals to discard old behaviors by shaking up the equilibrium state that maintains the status quo. • Moving—new attitudes, values, and behaviors are substituted for old ones. • Refreezing—new attitudes, values, and behaviors are established as the new status quo. 5. Explain how companies determine the need to conduct an organization development intervention. Answer: Organization development (OD) is defined as a systematic approach to organizational improvement that applies behavioral science theory and research in order to increase individual and organizational well-being and effectiveness. The first step, the diagnosis, should pinpoint specific problems and areas in need of improvement. Six areas to examine carefully are the organization’s purpose, structure, reward system, support systems, relationships, and leadership. A needs analysis is another crucial step in managing change. This is an analysis of the skills and competencies that employees must have to achieve the goals of the change. 6. Discuss the major group-focused techniques for organization development intervention. Answer: Some OD intervention methods emphasize changing the organization itself or changing the work groups within the organization rather than targeting the employees as individuals. Intervention methods in this category include survey feedback, management by objectives, product and service quality programs, team building, and process consultation. All these OD methods focus on changing the organization or the work group. 7. Discuss the major individual-focused techniques for organization development intervention. Answer: OD efforts that are targeted at individuals include skills training, leadership training and development, executive coaching, role negotiation, job redesign, health promotion programs, and career planning. Managers can choose from a host of organization development techniques to facilitate organizational change. The success of any OD intervention depends on a host of factors, including the technique used, the competence of the change agent, the organization’s readiness for change, and top management commitment. Programs do not drive change; business needs do. Key Terms Planned change (p. 293) Unplanned change (p. 293) Incremental change (p. 296) Strategic change (p. 296) Transformational change (p. 296) Change agent (p. 297) Unfreezing (p. 300) Moving (p. 300) Refreezing (p. 301) Organization development (OD) (p. 301) Survey feedback (p. 302) Management by objectives (MBO) (p. 303) Quality program (p. 303) Team building (p. 303) Process consultation (p. 304) Skills training (p. 304) Leadership training and development (p. 304) Executive coaching (p. 305) Role negotiation (p. 306) Job redesign (p. 306) PowerPoint Guide Introduction Slide 2—Learning Outcomes LO1 Identify the major external and internal forces for change in organizations. Slide 3—LO - 18.1 Slide 4—Forms of Change in Organizations Slide 5—Forces for Change LO2 Describe how different types of change vary in scope. Slide 6—LO - 18.2 Slide 7—The Scope of Change LO3 Discuss methods organizations can use to manage resistance to change. Slide 8—LO - 18.3 Slide 9—Resistance to Change LO4 Explain Lewin’s organizational change model. Slide 10—LO - 18.4 Slide 11—Figure 18.2: Lewin’s Change Model Slide 12–14—Beyond the Book: Testing Your Tolerance for Ambiguity LO5 Explain how companies determine the need to conduct an organizational development intervention. Slide 15—LO - 18.5 Slide 16—Organizational Development Slide 17—Figure 18.3: The Organization Development Cycle LO6 Discuss the major group-focused techniques for organization development intervention. Slide 18—LO - 18.6 Slide 19—Survey Feedback Slide 20—Management by Objectives and Quality Programs Slide 21—Team Building Slide 22—Process Consultation LO7 Discuss the major individual-focused techniques for organization development intervention. Slide 23—LO - 18.7 Slide 24—Skills Training Slide 25—Leadership Training & Development Slide 26—Executive Coaching Slide 27—Role Negotiation Slide 28—Job Redesign Slide 29—Health Promotion Programs Slide 30—Career Planning Slide 31—Beyond the Book: When the Perks Are Gone Slide 32—Holden Outerwear Key Terms Slides 33—Key Terms Summary Slides 34–35—Summary Review Questions and Answers 1. What are the major external and internal forces for change in organizations? Answer: The four major external forces for change are globalization, workforce diversity, technological change, and managing ethical behavior. Internal forces are things like a crisis, declining effectiveness, changes in employee expectations, and changes in the work climate. 2. What is the difference between incremental, strategic, and transformational changes? Answer: Students’ answers will vary. However, some of the differences between incremental, strategic, and transformational changes are as follows: • Incremental change is small in scope, resulting in only small improvements. • Strategic changes occur on a large scale, such as organizational restructuring. • Transformational changes move the organization to a radically different, and sometimes unknown, future state. Incremental Change involves small, gradual adjustments that improve existing processes without disrupting the core functions of an organization. Strategic Change focuses on aligning the organization's direction and goals with broader strategic objectives, often requiring significant shifts in strategy or policy. Transformational Change entails a fundamental, comprehensive overhaul of organizational structures, culture, and operations, leading to a major shift in how the organization functions. 3. What is a change agent? Who can play this role? Answer: Students’ answers will vary. The individual or group that introduces and manages change in an organization is known as the change agent. Change agents can be internal, such as managers or employees who are appointed to oversee the change process. Similarly, external change agents bring an outsider’s objective view to the organization. Effective change leaders build strong relationships within their leadership team, between the team and organizational members, and between the team and key environmental players. A change agent is an individual or group responsible for facilitating and driving change within an organization. This role involves identifying the need for change, guiding the change process, and overcoming resistance. Change agents can be managers, leaders, consultants, or even employees at any level who are committed to promoting and implementing change effectively. 4. What are the major reasons individuals resist change? How can organizations deal with resistance? Answer: Students’ answers will vary. Individuals resist change because of fear of the unknown, fear of loss, fear of failure, fear of disruption of interpersonal relationships, personality conflicts, politics, and cultural assumptions and values. Organizations can manage resistance to change through communication, participation, and empathy and support. Individuals resist change due to fear of the unknown, loss of control, perceived threats to job security, lack of trust in leadership, and previous negative experiences with change. Organizations can address resistance by clearly communicating the reasons for change, involving employees in the change process, providing adequate training and support, and addressing concerns empathetically. Engaging employees early and demonstrating the benefits of change can also help mitigate resistance. 5. Describe force field analysis and its relationship to Lewin’s change model. Answer: Students’ answers will vary. Force field analysis contends that a person’s behavior is the product of two opposing forces: one force pushes toward preserving the status quo and the other force pushes for change. When the two opposing forces are approximately equal, current behavior is maintained. In Kurt Lewin’s change model, the unfreezing step requires that individuals discard old behaviors by shaking up the equilibrium state that maintains the status quo and helps them develop the new skills they need. Force field analysis, developed by Kurt Lewin, identifies and evaluates the forces that support or hinder a proposed change. It involves analyzing driving forces (factors promoting change) and restraining forces (factors opposing change) to understand the dynamics affecting the change process. Lewin’s change model—comprising unfreezing, changing, and refreezing—uses force field analysis to guide the process by identifying what needs to be altered to achieve successful change and how to address the opposing forces. 6. What is organization development? Why is it undertaken by organizations? Answer: Students’ answers will vary. Organization development (OD) is the systematic approach to organizational improvement that applies behavioral science theory and research in order to increase individual and organizational well-being and effectiveness. OD is needed to guide employees through significant change in the organization. Organization Development (OD) is a systematic effort to improve an organization's effectiveness and health through planned change processes, including interventions in the organization’s structure, culture, and systems. It focuses on enhancing organizational performance, fostering a positive work environment, and increasing overall productivity. OD is undertaken to address issues such as low morale, poor communication, and inefficient processes, aiming to improve both individual and organizational outcomes. 7. Name six areas to be critically examined in any comprehensive organizational diagnosis. Answer: Six areas to examine carefully are the organization’s purpose, structure, reward system, support systems, relationships, and leadership. 8. What are the major group-focused and individual-focused OD intervention methods? Answer: Group-focused interventions include survey feedback, management by objectives, product and service quality programs, team building, and process consultation. Individual-focused methods include skills training, leadership training and development, executive coaching, role negotiation, job redesign, health promotion programs, and career planning. 9. Which OD intervention is most effective? Answer: Students’ answers will vary. No single method of OD is effective in every instance. It is typically best to use multiple-method OD approaches. There is no universally "most effective" OD intervention, as effectiveness depends on the specific context and needs of the organization. However, interventions like team-building exercises, leadership development, and process consultation are often highly impactful. The success of any intervention is contingent upon its alignment with organizational goals, culture, and the nature of the issues being addressed. Tailoring interventions to the unique challenges of the organization generally yields the best results. Discussion and Communication Questions and Suggested Answers 1. What are the major external forces for change in today’s organizations? Answer: Students’ answers will vary. It may include competition as one of the forces, along with globalization, technological change, managing ethical behavior, and workforce diversity. Major external forces for change in today’s organizations include technological advancements, economic shifts, regulatory changes, globalization, and evolving customer expectations. These factors drive organizations to adapt in order to remain competitive, comply with new regulations, leverage emerging technologies, and meet the changing demands of a global market. Responding effectively to these external pressures is crucial for organizational survival and success. 2. What are the advantages of using an external change agent and an internal change agent? Answer: Students’ answers will vary. External change agents bring an outsider’s objective view to the organization. They may be preferred by employees because of their impartiality. However, not only is their knowledge of the organization’s history limited, but they may also be viewed with suspicion by organization members. On the other hand, internal agents have better knowledge of the organization, its history, its culture, and its political processes. A drawback can be that internal change agents can be accused of favoritism, or be too close to the situation to have an objective view of what needs to be done. External Change Agent: Brings fresh perspectives, unbiased views, and expertise from outside the organization, which can challenge existing norms and offer new solutions. They often have experience with similar changes across different contexts. Internal Change Agent: Possesses deep organizational knowledge, existing relationships, and understanding of the company culture. They can facilitate smoother implementation and buy-in due to their insider status and familiarity with internal dynamics. 3. Can organizations prevent resistance to change? If so, how? Answer: There are many techniques, including the utilization of professionals (OD specialists), to assist with resistance to change. The three key strategies for managing resistance to change are communication, participation, and empathy and support. Communication is an essential aspect of helping employees adjust effectively. Research substantiates the need for participation from those who will be involved in the change. Empathy and support is also critical to acceptance of change. It is probably unrealistic to think that organizations can prevent all resistance to change. Organizations can't completely prevent resistance to change, but they can mitigate it. Effective strategies include clear and transparent communication about the change and its benefits, involving employees in the change process, providing adequate training and support, and addressing concerns empathetically. Engaging leadership and creating a supportive culture also help in easing resistance. 4. What organization development techniques are the easiest to implement and which one is the most difficult to implement? Why? Answer: Team building is a very popular organizational development technique, which is comparatively easy to implement. Survey feedback is nonthreatening and allows for anonymity, and there is little investment on the employees’ part. Similarly, management by objectives is a high investment technique that requires training and involves a lengthy process. However, quality programs are the most difficult to implement as a number of companies have been disappointed with the time required and the slowness of change. 5. Suppose your organization experiences a dramatic increase in turnover. How would you diagnose the underlying problem? Answer: Students could mention any of the techniques that have been listed for organizational analysis. A thorough process of information gathering should be emphasized. To diagnose a dramatic increase in turnover, conduct exit interviews to gather feedback from departing employees, analyze patterns in turnover data to identify trends or common reasons, assess employee engagement and satisfaction through surveys, and review organizational changes or policies that might have impacted morale. Additionally, benchmark against industry standards to see if the turnover rate is an outlier. 6. Downsizing has played a major role in changing U.S. organizations. Analyze the internal and external forces for change regarding downsizing an organization. Answer: Students may tend to focus on the external forces that lead to downsizing. Be sure they are aware that internal factors may also serve as forces for downsizing. Internal Forces: Financial pressures, inefficiencies, and declining performance often drive downsizing. Organizational restructuring needs, such as streamlining operations or eliminating redundant roles, can also prompt downsizing. External Forces: Economic downturns, increased competition, and market changes force organizations to reduce costs and remain competitive. Regulatory changes or shifts in consumer demand can further drive the need for downsizing to adapt and survive in a dynamic environment. 7. If you were in charge of designing the ideal management development program, what topics would you include? Why? Answer: Students may select trendy topics rather than topics based on theories. Be sure they provide justification for their responses. The ideal management development program should include: 1. Leadership Skills: To effectively lead teams and inspire performance. 2. Change Management: To navigate and manage organizational changes. 3. Communication: To enhance interpersonal skills and resolve conflicts. 4. Strategic Thinking: To make informed decisions and plan for the future. 5. Emotional Intelligence: To manage one’s own emotions and understand others. These topics ensure managers are equipped to lead, adapt, and contribute to organizational success. 8. Find an article that describes an organization that has gone through change and managed it well. Develop a real-world feature of your own about the example you find using the format in this book. Prepare a brief oral presentation of your real-world feature for your class. Answer: Following the class presentations, discuss the similarities and differences that exist in how the companies managed change. Students should consider why different approaches to change were effective and identify any commonalties that they see in managing change effectively. Article Summary: Company: Microsoft Change Implemented: Shift to a cloud-first strategy and a focus on AI and cybersecurity. Successful Management: Microsoft realigned its business model under CEO Satya Nadella, emphasizing cloud computing and AI, which rejuvenated its growth and market position. Feature Presentation: Microsoft's strategic shift to cloud computing and AI under Satya Nadella's leadership exemplifies effective change management. By focusing on innovation and embracing new technologies, Microsoft not only adapted to market demands but also strengthened its competitive edge, achieving substantial growth and improved financial performance. 9. Think of a change you would like to make in your life. Using Figure 18.1 as a guide, prepare your own force field analysis for that change. How will you overcome the forces for the status quo? How will you make sure to “refreeze” following the change? Summarize your analysis in an action plan. Answer: Students should be very specific in their action plan. You may also want students to consider a plan for evaluating their effectiveness at implementing the change. Change Desired: Adopting a regular exercise routine. Force Field Analysis: • Forces for Change: Health benefits, increased energy, improved mood. • Forces for Status Quo: Lack of time, current sedentary habits, possible fatigue. Action Plan: 1. Overcome Status Quo Forces: Schedule workouts into daily routine, start with short sessions, set achievable goals, and track progress. 2. Refreeze: Establish a consistent workout schedule, set reminders, and reward progress to make exercise a habitual part of life. Ethical Dilemma The purpose of Ethical Dilemmas is to encourage students to develop their awareness of ethical issues in the workplace and the managerial challenges they present. The dilemmas are set up to present situations in which there is no clear ethical choice. The goal for the instructor is to guide students through the process of analyzing the situation and examining possible alternative solutions. There are no “right” answers to the questions at the end of each scenario, only opportunities to explore alternatives and generate discussions on the appropriateness of each alternative. The student portion of the activity is on a handout at the end of this chapter guide. Robert’s options are to recommend restructuring that favors his own department but hides some issues or to recommend restructuring that is likely to improve the company more and involves full disclosure. 1. Using consequential, rule-based, and character theories, evaluate Robert’s options. Answer: Robert’s options are to recommend restructuring that favors his own department but hides some issues or to recommend restructuring that is likely to improve the company more and involves full disclosure. Consequential Theory If Robert recommends restructuring that favors his own department, his department will become more important in the company, and he will save his own job and those of the employees in his department, but he will have to be dishonest to do so. If Robert recommends restructuring that includes full disclosure of all information, it will likely improve the company more, but it may result in the loss of his job and/or the jobs of some of his department members. Rule-Based Theory although Robert has a responsibility to do what he can to protect the jobs of his department employees, his primary obligation is to do what is best for his company by fully disclosing all necessary information in his recommendations. Character Theory There is very little indication of Robert’s character in the scenario. 2. What should Robert do? Why? Answer: Robert should recommend restructuring that includes full disclosure of all information. This option represents the most good for the greatest number by providing for greater improvement of the company as a whole. It also allows him to fulfill his primary obligation under the rule-based theory. Self-Assessments—What about You? 18.1 Tolerance for Ambiguity This scale will give students a sense of their comfort level with change. This challenge might be a good lead-in to a class discussion of the reasons individuals resist change and how organizations can better manage the change process, given that everyone does not tolerate ambiguity to the same degree. The student portion of the activity is on a handout at the end of this chapter guide. 18.2 Applying Force Field Analysis This exercise can be tied to Discussion and Communication Question #10 that asks students to prepare a force field analysis of a change they desire to make in their lives. Prior to students complete this analysis, select an example and walk the students, as a class, through a force field analysis so that they understand better how to apply this type of analysis to their own experience. The student portion of the activity is on a handout at the end of this chapter guide and on a review card in the student edition of ORGB. Issues in Diversity Changing Racial Attitudes-One Dorm Room at a Time Many U.S. colleges and universities are taking the saying, “familiarity breeds content” to a new level by assigning students of different races as roommates. Many times these assignments are out of necessity owing to a decreased number of minority students on some college campuses. Other times, the roommate assignments are due to the limited number of available on-campus housing. And when students have roommate problems, they are usually told to work it out whether the roommate is of the same or a different race. Whatever the reason, this “natural experiment” has yielded some surprising results. The most interesting finding from a study of Ohio State students was that, students who remained with different-race roommates for at least ten weeks saw an improvement in their racial attitudes. How? Just ask Sam Boakye. The student portion of the activity is on a handout at the end of this chapter guide. Ghana-born Boakye enrolled in Ohio State as a freshman and was the only black student on his dorm-room floor. He was determined to get good grades, in part, so that his white roommate would not have a basis for negative racial views. “If you’re surrounded by whites,” Boakye explains, “you have something to prove. You’re pushed to do better, to challenge the stereotype that black people are not that smart.” Racial attitudes are typically formed early in life. Many college students have had very little exposure to diversity when they arrive on campus, and as a result, have few different-race friends. And while most college classrooms have sufficient levels of diversity, one Ohio State professor suggests that classroom diversity does not have the same effect on increasing different-race friendships that living together in residence halls do. Are there conflicts between interracial roommates? Sure there are. But most of those are no different than the things that drive conflict in same-race relationships—personal property, loud music, cleanliness, or coming in late at night. Could the key to challenging racial stereotypes and negative perceptions be as simple as making a good impression? Boakye believes it could be. According to him, “…when their [white students’] first experience with a black guy isn’t so bad, they go and make more black friends.” 1. What deep-level diversity issues may be relevant here? Answer: The scenario notes that “Racial attitudes are typically formed early in life.” Students of all races have deep-level beliefs about other races that may cause problems in close living situations. However, many other deeply held beliefs that also vary among individuals can cause equally difficult issues, such as religion, politics, weight, sexual orientation, personal interests, and others. Students who can make it through the first ten weeks probably begin to realize that people whose beliefs conflict with their own aren’t necessarily wrong, they simply have different ideas. 2. Would you support college residence policies that required different-race roommate pairings to increase campus diversity? Why or why not? Answer: The different-race roommate assignments referenced in the scenario as improving racial attitudes were assignments made out of necessity related to student populations or housing limitations, not as the result of some arbitrary administrative policy. If different-race housing assignments appear to be mandatory, experimental, and manipulative, they may result in declining racial attitudes rather than improved attitudes. At the least, student morale is likely to suffer when students begin to feel like they’re being forced into uncomfortable and undesired living situations or like lab rats in someone’s experiment. Policies that encourage, but do not require, different-race roommate pairings are much more likely to increase acceptance of diversity on campus. Experiential Exercises 18.1 Organizational Diagnosis of the University Instructor’s Notes This exercise is intended to give students experience in organizational diagnosis with an environment in which they are familiar. It is useful to point out that they may not know enough about all aspects of the university to proceed through the diagnosis. You might want to query them on how they would gather significant information on the areas where they are least comfortable. It is also interesting to ask them if they believe they are too biased in any of the areas because of personal experiences that may not be true for the majority of students. Finally, would they be better change agents than an outside consultant? The student portion of the activity is on a handout at the end of this chapter guide. 18.2 Team Building for Team Effectiveness Instructor’s Notes This exercise is a team-building effort that stresses change. This is a good closure exercise for the end of the semester. If you use peer evaluation or group grading, this might be a good follow-up to the evaluation. Most students have a tendency to paint a better picture of their group than where they actually performed because they believe we expect them to be positive. Emphasize that if their group was a disaster, it is useful to analyze why this happened, and how they could have prevented the outcome knowing what they know at the end of the semester. A student handout is at the end of this chapter guide. 18.3 Crusty Rusty This exercise points out the difficulties for individuals in dealing with change. Students are divided into groups of three or four, with one person as Crusty Rusty, the curmudgeon opposing the computer change, and Jesse, the young junior accountant sent to convince Rusty that a change is needed. In addition, there is an observer that records the interactions. I ask the Jesses to leave the room with me, and have the Rustys spread out across the room, and the observers select a group to observe. The Jesses are instructed to approach the Rustys as if they are actually in their office, beginning with hello. The student portion of the activity is on a handout at the end of this chapter guide. Try to assign students to roles that they would least likely be in. SOURCE: Adapted from Ken Kozar, The University of Colorado, Boulder Additional Examples Will Amazon’s Kindle Revolutionize the Publishing Industry? Jeff Bezos, CEO of Amazon, the world’s largest bookstore, thinks the Amazon Kindle DX will do the same thing to publishing that the iPod and iTunes did to the music business. He also thinks that the Kindle creates a new platform for news and advertising. If he’s right, Amazon could phase out book publishers entirely because they would become unnecessary with Kindle . Still, the challenges are considerable. Will a stand-alone product like Kindle work when consumers are attracted to devices like smart phones that do everything? Is Apple planning to move into e-books? Under Armour Steps into the Shoe Market Competitive athletes have always been customers for Under Armour, but they have moved into the casual athlete market with apparel, and now they want to become a mainstream brand. One step in their strategy to appeal to women and older consumers is by entering the highly competitive athletic shoe market. 3-D technology is used to create images that are used to design shoes without spending the time and money involved in creating a physical sample of the shoe. At Under Armour, young designers are sought after because they’re more likely to excel at thinking and designing in 3-D. The athletic footwear market is so large ($5 billion annually in the United States on running shoes alone) that even a small portion of the market would add significantly to Under Armour’s financial status. Resistance to Change Most research on resistance to change assumes that the people who resist change are irrational or are unreasonable and that change agents are the undeserving victims of the irrational and dysfunctional responses of those resistant to change. Researchers looked at the resistance process from another angle and argued that resistance can be a valuable resource on three levels: existence, engagement, and strengthening. Oftentimes, it is difficult to get new ideas heard, let alone repeated in enough places by enough people to get a change implemented. Resistance actually provides this opportunity and can keep the change topic or idea in existence long enough to garner support. With resistance can also come commitment or engagement. Individuals who resist are typically more invested in what is impacted by the change than those who are ambivalent. Change agents should take note of these engaged individuals, listen to them, and consider changing the pace, scope, or sequencing of the change based on their arguments. Resistance can be functional and strengthen an organization much like functional conflict, and the actions managers use to counter resistance can actually be beneficial to the change process. Sometimes, resistance can lead to increased communication, and greater participation, along with better working relationships. The lesson for managers is that resistance is not necessarily a bad thing. SOURCE: J. D. Ford, L. W. Ford, and A. D’ Amelio “Resistance to Change: The Rest of the Story,” Academy of Management Review 33 (2008): 362–377. Case Study and Suggested Responses CarMax, the Used Car Superstore: Learning for Performance Management Linkage of Case to Chapter Material This case focuses on CarMax, the nation’s largest retailer of used cars. The operations of CarMax are guided by a multipoint business concept that stresses product availability, no-haggle pricing, product quality, willingness to purchase vehicles from a customer even if the same customer does not purchase vehicles from CarMax, and service availability. Not only do these points guide CarMax’s operations, but they also help to set forth CarMax as a business model for other used car dealers to emulate. Indeed, Casey Thormahlen and George Van Horn, writing in The RMA Journal, suggest that new car dealers that also sell used cars can learn a great deal from CarMax about how to operate successfully. CarMax’s operations are firmly based on a foundation of ten values, one of which is continuous improvement. The CarMax Web site states, “We will never stop improving our systems, our processes, and our policies.” CarMax’s commitment to continuous improvement relies heavily upon learning. This emphasis on learning is implemented through the company’s talent management process and the use of learning loops. Talent management involves programs designed to help associates develop the competencies they must have to excel at their roles and to contribute to the company’s achievement of its short-range and long-range goals. Learning loops involve a five-step process that is integral to continuous improvement and which “can be implemented anywhere in the organization to accelerate the pace of change.” The case provides the opportunity for exploring the linkage between continuous improvement and organizational change, as well as how external forces and internal forces for change impact organizational change efforts. The case also provides an opportunity to apply the concepts of incremental change, strategic change, and transformational change. Suggested Answers for Discussion Questions 1. How is continuous improvement linked to organizational change? Answer: One of the ten values upon which CarMax bases its operations is continuous improvement. The CarMax Web site states: “We will never stop improving our systems, our processes, and our policies.” In short, CarMax is committed to organizational change that continually improves how the company operates. Organizational change is, at its very core, a process of learning how to effectively adapt to and capitalize upon changing circumstancesboth internal to the organization and external to it. Of course, CarMax’s commitment to continuous improvement relies heavily upon learning, and it does this through its talent management process and the use of learning loops. 2. What external forces for change are likely to influence CarMax’s commitment to continuous improvement? Answer: Among used-car sellers, the primary external forces for change are changing consumer preferencessuch as the desire for more fuel-efficient vehiclesand the highly competitive nature of the industry itself. Changing customer preferences do not present a formidable challenge to CarMax; their preferences can be readily accommodated by CarMax because it is the nation’s largest retailer of used cars. Specifically, CarMax offers tens of thousands of high-quality, reasonably priced used cars across the country. Given CarMax’s dominant competitive position among used car retailers, competition does not present a formidable external force that drives CarMax’s commitment to continuous improvement. Indeed, Casey Thormahlen and George Van Horn, writing in The RMA Journal, suggest that new car dealers that also sell used cars can learn a great deal from CarMax. 3. What internal forces for change are likely to influence CarMax’s commitment to continuous improvement? Answer: The primary internal force for change is the desire of CarMax’s management team to continue the company’s success and industry leadership. Of course, if the company would fail to meet its short-term and long-term performance goals, this failure would become an internal force for change. Employees’ existing skill levels vis-à-vis needed competencies is another potential internal force for change. 4. Explain CarMax’s use of (a) talent management for continuous learning and (b) learning loops from the perspectives of incremental change, strategic change, and transformational change. Answer: Incremental change involves making small improvements in the organization or fine-tuning the organization. Continuous learning, by definition, is an incremental change process; it involves an ongoing improvement to enhance employees’ capabilities and contribute to improvements in organizational performance. To this end, CarMax closely monitors trends in (a) talent management and human resources, as well as overall societal trends and (b) emerging technologies to provide the right tools to help associates develop the competencies they must have in order to excel at their roles. Incremental change also can occur in the context of learning loops in that the multistep process may reveal needed changes that only involve fine-tuning of existing operations. Strategic change involves moving the organization from an old state to a known new state during a controlled period of time. CarMax’s use of talent management and learning loops can be viewed from a strategic change perspective. CarMax has strategic goals for talent management to ensure that its workforce has the necessary skills to support company performance, both now and in the future. Based on its short-term and long-term goals, the company implements programs to develop and support the core skill competencies that drive the desired performance goals. Learning loops encompass five basic features that can influence and promote strategic change. Perhaps most important though is the foundational feature wherein the company develops effective performance measures and targets that are linked to the firm’s values, vision, and goals. The other four features articulate what must be done to ensure that the performance targets are, in fact, met. Transformational change occurs when the organization moves to a radically different, and sometimes unknown, future state. CarMax is not engaged in transformational change; rather it has a well-articulated plan to achieve strategic change. 5. What are the primary organizational development interventions that are embedded in CarMax’s fostering of learning for continuous improvement? Answer: CarMax uses two primary organization development interventions. First, CarMax uses a variety of diagnostic and needs analysis techniques in fostering learning for continuous improvement. The company regularly surveys its associates and managers to ascertain what is needed to achieve their individual work objectives and to improve performance. The company also combines this survey data with assessment data from other sources, including but not limited to performance reviews and management assessment programs. Second, there are regular group-based sessions with employees to share and discuss the latest performance information. The shared information is analyzed collaboratively and questioned critically, and every idea that is brought upno matter who brings it upgets a response. SOURCE: This case solution was written by Michael K. McCuddy, The Louis S. and Mary L. Morgal Chair of Christian Business Ethics and Professor of Management, College of Business, Valparaiso University. Video Profile on Holden Outerwear When it comes to trends, Holden has always been a leader, never a follower. Soon after the company was launched, it was heralded in the press as the new and improved outerwear. Holden’s snow pants and jackets possess unique features like leather-covered snaps, leather shoulders, and urban-style stitching. Unlike brands that make garments using faux materials, Holden works with true cotton denim twill, which is cut for style and then laminated with waterproofing. By far Holden’s greatest innovation has been the creation of a new eco-friendly fabric. In 2005, Mikey LeBlanc and his business partner hatched an idea to make a natural-fiber waterproof breathable fabric, which didn’t exist anywhere in the market. In addition to being technically durable, the designers’ new eco-material was hailed as an environmental breakthrough. Discussion Questions and Solutions 1. Describe the type of change that Holden’s leaders are managing. Answer: Students’ answers will vary. Leaders at Holden are managing change related to global product trends. Organizations like Holden use product innovation to stay ahead of competition in the global market. The video does not address change related to diversity, but it does touch on technology in its discussion about the technical challenges related to manufacturing innovative garments. Holden’s leaders are managing a transformational change, as they are overhauling the company's approach to designing and manufacturing outerwear to be highly innovative. This shift requires a significant realignment of strategies, culture, and processes to meet new market demands. 2. What resistance is Holden encountering, especially as the company seeks to design and manufacture highly innovative outerwear garments? Answer: Students’ answers will vary. According to owner Mikey LeBlanc and designer Nikki Brush, Holden faces resistance from external vendors that helps the apparel maker deliver innovative products. Since Holden is a small company and does not own its own factories or fabric mills, producing outerwear requires cooperation from external vendors. In the video, designer Nikki Brush says that being highly innovative means doing things differently, and this requires Holden managers to push on outside vendors in ways that cause conflict. Owner Mikey LeBlanc states that outside partners often give an “it’s not possible” response to Holden’s proposed concepts. Nikki Brush adds that rising costs throughout the industry make vendor cooperation even more uncertain since outside manufacturers don’t want to risk money or resources on untested products. When partnering with Holden on new innovations, outside vendors experience fear of the unknown and fear of loss. Holden is encountering resistance related to uncertainty and discomfort with new methods, especially from employees who may prefer traditional practices or fear that innovative approaches could disrupt established workflows and job security. 3. Using Kurt Lewin’s change model, give a force field analysis for Holden’s challenges in delivering innovative products. Suggest how the company might overcome resistance and foster permanent change. Answer: Students’ answers will vary, but forces that support the status quo approach to outerwear manufacturing include traditional factory processes, standardized textile machinery, an orientation to serve mass markets through mass production, and a lack of incentive among Holden’s manufacturing partners. Forces for change include global fashion trends and hot selling breakthrough products. Acting as change agents, Holden’s leaders could reduce vendor resistance by offering vendors long-range partnerships, including windfall profits for hot selling innovative garments produced in a joint venture. A single trendy item that sold mass quantities could incentivize a vendor to adjust its manufacturing process to willingly partner with Holden on an ongoing basis. In addition, the trend toward mass customization in apparel manufacturing may work in Holden’s favor as it allows manufacturers to earn profits from items produced in smaller quantities. In Kurt Lewin’s change model, the force field analysis for Holden’s challenges involves driving forces like market demand for innovation and competitive advantage, against restraining forces such as entrenched practices and employee resistance. To overcome resistance, Holden can implement clear communication, involve employees in the change process, and provide training to ease the transition, ensuring the changes are integrated and reinforced (refreeze) into everyday operations. Cohesion Case: Part 4 DonorsChoose.org: Building Toward the Future 1. DonorsChoose.org is structured like many contemporary business organizations. Do you think this structural similarity is useful for a charity, or should charities not try to emulate the organizational structures of for-profit organizations? Explain your answer. Answer: Students’ answers will vary. According to the case, DonorsChoose.org is structured around a series of interconnected teams. Guided by Charles Best, an executive team of eight members runs DonorsChoose.org. Other teams include marketing, finance, operations and human capital, partnerships and business development (one such team for the east region, one for the west region, and one for national headquarters), and technology and user experience. In addition, the organization is guided by (a) a board of directors, consisting of over a dozen members from a variety of organizations and career paths and (b) a national advisory council, consisting of over two dozen members, also with varied backgrounds involving substantial responsibility. This organizational structure has proven to be effective for DonorsChoose. One only needs to look to its record of success in attracting funding and making a meaningful difference in the effectiveness of public education to know that the structure has worked. The accolades that the organization and its leaders have received provide additional testimony that the DonorsChoose.org structure works. That DonorsChoose.org has served as a template for other Internet-based charities is also a testimony to the effectiveness of the organization structure. Of course, students might have divergent beliefs about how charities ought to be structured. Whatever their beliefs, they should be required to critically analyze and assess why not-for-profit businesses should or should not be structured differently than for-profit businesses. For a charity like DonorsChoose.org, emulating the organizational structures of for-profit organizations can be beneficial, as it introduces efficiency, scalability, and strategic focus, which can enhance operational effectiveness and adaptability in achieving its mission. Such structures can help charities manage resources better and innovate in ways that align with contemporary expectations. 2. Based upon what might be inferred from the organizational structure of DonorsChoose, and what you have learned about the organization from the DonorsChoose (A), (B), and (C) cases earlier in the text, how would you describe the organization’s culture? Answer: Students’ answers will vary. DonorsChoose has a strong culture wherein all members share the common bond of a strong interest in and commitment to the effective public education of America’s children. Students can look to DonorsChoose (A), (B), and (C) and their response to the associated discussion question to recall the vision and mission of DonorsChoose, the defining characteristics of Charles Best and his followers, and the organization’s operational procedures to add further definition to the nature of this strong culture. DonorsChoose.org’s culture is likely characterized by a strong emphasis on transparency, collaboration, and mission-driven focus. The organization’s commitment to connecting donors directly with classroom needs and its use of technology to facilitate this suggests a culture centered on empowerment, community involvement, and responsiveness to both educators' and donors' needs. 3. Referring to your responses to questions 1 and 2, how does the DonorsChoose structure and culture position it to capitalize on the social connectedness trend? Answer: Students’ answers will vary. According to DonorsChoose (D), “[t]he greatest challenge for nonprofit leaders in the connected age is adopting a new mind-set for social change. Power is shifting from institutions to individuals throughout societySuccessful connected-age organizations are those that facilitate broad networks of social activists, not necessarily organizations with the biggest membership lists or the most money in their coffers.” Vinod Khosla, a well-known venture capitalist, places DonorsChoose alongside the most innovative for-profit technology companies in that it leverages the connectivity of the Internet. Eileen White, managing director of charitable services at Goldman Sachs, states, “[T]he Web is proving invaluable in connecting people in need with those who can give. ‘It’s a whole new way of giving.’” The team-oriented structure and the strong culture of DonorsChoose, as well as the technological savvy of its Internet business model, position it to capitalize on the social connectedness trend. In fact, DonorsChoose is at the center of this technology-based charitable giving trend. With its strong culture, DonorsChoose will remain committed to facilitating educational excellence. With its team structure of talented and committed people, DonorsChoose has a well-coordinated collaborative effort that can capitalize on the interface of technology and social activism. The structure and culture of DonorsChoose.org position it well to capitalize on the social connectedness trend by leveraging its efficient, transparent model to foster strong community ties. The integration of social media and direct engagement with educators and donors aligns with the trend towards personalized, connected experiences, enhancing its ability to attract and retain supporters. 4. Is the development of various collaborative initiatives with a variety of businesses a wise strategic move for DonorsChoose? Do these collaborative initiatives fit with the structure and culture of DonorsChoose? Explain your answer. Answer: In the mid-2000s, DonorsChoose began exploring how it could effectively partner with business leaders and business organizations in order to make further inroads into funding public school teachers’ educational projects. In one case, DonorsChoose used a substantial grant from a business “to fuel what we call citizen philanthropygetting that $20 donor to fund a project that would otherwise seem out of your reach because of a philanthropic discount from a bigger donor.” In another major initiative, DonorsChoose partnered with other businesses to supply DonorsChoose gift certificates to the employees, customers, and advertisers of the partners. The partner businesses paid for the gift certificates, and the recipients could use them to make a donation to the educational project of their choice. These collaborative initiatives fit well with the DonorsChoose approachwith its culture and structure. DonorsChoose is all about people working together to improve public education in America. Partnering with businesses to bring more people into the collaborative effort to improve public education is simply another method for doing what DonorsChoose already does well in the pursuit of its vision and mission. 5. Could you envision your career involving, at least for a reasonable period of time, work for a nonprofit organization? How has the knowledge you’ve gained about DonorsChoose.org affected your thinking about working for a nonprofit? Answer: Given everything that the students have learned through exposure to DonorsChoose.org in this case as well as in DonorsChoose (A), (B), and (C), they will have accumulated considerable insight into the nature of a highly successful nonprofit business. With all of this information as background, this question provides students with the opportunity to explore whether or not a nonprofit organization could be a viable future employment option for them. 6. Go to the DonorsChoose.org Web site, and look for the current information regarding the nonprofit’s impact on American public education. What conclusion do you draw by comparing the current data to that of May 28, 2011? Answer: On May 28, 2011, as the case was being written, Donors Choose had raised $83,988,155, which had funded 204,203 projects at 45,984 schools, thereby helping 4,975,788 students. The donations supported the acquisition of books (26 percent of funded resources), technology (25 percent), classroom supplies (38 percent), field trips and class visitors (1 percent), and other resources (9 percent). Also, as of May 28, 2011, project requests were posted by 179,462 teachers; and 63 percent of the projects received full funding. Perhaps the ultimate measure of the organization’s impact on public education in America was that 94 percent of the teachers said the funded projects increased their effectiveness in the classroom. The students should go to the DonorsChoose.org Web site to find the corresponding information for the date closest to the time the case is being discussed in class. A comparison of the two sets of data should prove interesting in showing the direction in which DonorsChoose is headed. The logical expectation would be one of continued growth in the key numbers reported in the preceding paragraph. 7. Will DonorsChoose be able to continue to adapt and develop in order to make even more progress in fulfilling its mission and vision? Explain your answer. Answer: Donors Choose.org has made substantive progress in fulfilling its mission of “engag[ing] the public in public schools by giving people a simple, accountable and personal way to address educational inequity” and its vision of “a nation where children in every community have the tools and experiences needed for an excellent education.” Not only has DonorsChoose made significant progress in fulfilling its mission and vision, the nonprofit “has become something of a template for charitable giving in education. As far away as Hong Kong, entrepreneurs have developed a Chinese version, at edexchange.com, to connect Chinese teachers with donors.” In America, the quality of public education at the primary and secondary levels remains a significant concern. By all indications, this will remain a significant concern for the foreseeable future. Moreover, given decisions by state governments, the resources for funding public education have become increasingly tight. This, too, is likely to persist for at least several years. Consequently, the needs that DonorsChoose has been addressing will remain a major problem for American society. Given the successful track record of DonorsChoose and given that the DonorsChoose business model has become a template for charitable giving in education, the likelihood is quite high that DonorsChoose will continue to be at “the top of its game.” Its reputation for being highly innovative will help it to adapt and change as needed to continue to fulfill its mission and vision. SOURCE: This case solution was written by Michael K. McCuddy, The Louis S. and Mary L. Morgal Chair of Christian Business Ethics and Professor of Management, College of Business, Valparaiso University. Student Handouts Ethical Dilemma Robert Tamarin stares at a questionnaire and considers his options. He’s just completed a meeting with Wendy Preston, the consultant who has been hired to evaluate company productivity and procedure in order to streamline processes and aim for efficiency at Wiffendorf Corp. Wendy is looking at duplicated efforts that exist in the present hierarchy, and she’s meeting with managers such as Robert to evaluate where changes can be made. Robert’s meeting with Wendy was pretty straight-forward: She took some notes about who reported to him directly and to whom he reported. Now he has been instructed to complete a form regarding some procedural issues at the company. Robert knows that there is a lot of wasted time due to repetitive procedures at Wiffendorf—and he thinks that, in general, hiring a consultant was the right thing to do. Money and time are being wasted, and an outsider could have a clear perspective of what changes need to be made to improve the processes. Wiffendorf Corp. has an opportunity right now to take a significant position in the market, but it’s got to be able to grow efficiently. In order to do that, Robert’s certain that significant changes will need to be made, and almost certainly, positions will be cut. As he starts to write down his thoughts, he thinks about how he wants to word his recommendations and impressions. Robert knows that if he omitted some details and rephrased certain procedures, he might be able to structure the change to ensure that he and his team feel the least impact. Robert wants to make sure that neither he nor anyone else in his department loses their jobs. He can see how his job and another manager’s job could be combined—however, he can also show how restructuring some of the teams could make his department more important than it is now. While these changes that favored him and his department would definitely improve Wifferdorf’s productivity, it would probably not improve it as much as a restructure done on complete disclosure could. Questions 1. Using consequential, rule-based and character theories, evaluate Robert’s options. Answer: Consequential Theory: Robert should weigh the outcomes of his actions. Omitting details to protect his team might lead to short-term job security but could hinder long-term efficiency and market positioning for Wiffendorf, ultimately impacting everyone negatively. Rule-Based Theory: Robert should adhere to honesty and transparency in his recommendations. Misrepresenting information violates ethical standards and can lead to unfair advantages and potentially harm the company in the long run. Character Theory: Robert should reflect on his integrity and professional values. Acting with honesty and a commitment to the greater good reflects strong character, aligning with ethical principles of fairness and responsibility. 2. What should Robert do? Why? Answer: Robert should provide a complete and honest evaluation of the procedures. This approach aligns with ethical standards, fosters trust, and ensures that the company makes the best decisions for long-term success, even if it means facing potential personal or departmental changes. What about You? Tolerance for Ambiguity Read each of the following statements carefully. Then rate each of them in terms of the extent to which you either agree or disagree with the statement using the following scale: Completely Disagree Neither Agree nor Disagree Completely Agree 1 2 3 4 5 6 7 Place the number that best describes your degree of agreement or disagreement in the blank to the left of each statement. 1. An expert who doesn’t come up with a definite answer probably doesn’t know much. Answer: Rating: 2 (Completely Disagree) Reason: Experts often deal with uncertainty and complex issues where definitive answers may not always be possible. 2. I would like to live in a foreign country for a while. Answer: Rating: 5 (Agree) Reason: Living abroad can be an enriching experience and exposes one to new cultures and perspectives. 3. The sooner we all acquire similar values and ideals, the better. Answer: Rating: 1 (Completely Disagree) Reason: Diversity in values and ideals fosters innovation and understanding among people. 4. A good teacher is one who makes you wonder about your way of looking at things. Answer: Rating: 6 (Agree) Reason: Challenging one's perspectives is a key element of effective teaching and personal growth. 5. I like parties where I know most of the people more than ones where all or most of the people are complete strangers. Answer: Rating: 4 (Somewhat Agree) Reason: Familiarity can be comfortable, but meeting strangers can also be stimulating and valuable. 6. Teachers or supervisors who hand out vague assignments give a chance for one to show initiative and originality. Answer: Rating: 5 (Agree) Reason: Vague assignments can encourage creativity and problem-solving, though they may also require more clarification. 7. A person who leads an even, regular life in which few surprises or unexpected happenings arise really has a lot to be grateful for. Answer: Rating: 3 (Neither Agree nor Disagree) Reason: A stable life can be comforting, but occasional surprises and changes can add excitement and growth opportunities. 8. Many of our most important decisions are based upon insufficient information. Answer: Rating: 6 (Agree) Reason: Decision-making often involves working with incomplete information and assessing risks. 9. There is really no such thing as a problem that can’t be solved. Answer: Rating: 3 (Neither Agree nor Disagree) Reason: While many problems can be addressed, some may be unsolvable or beyond current capabilities. 10. People who fit their lives to a schedule probably miss most of the joy of living. Answer: Rating: 4 (Somewhat Agree) Reason: Strict schedules can limit spontaneity, but they also provide structure and efficiency. 11. A good job is one where what is to be done and how it is to be done are always clear. Answer: Rating: 4 (Somewhat Agree) Reason: Clarity in tasks is important for efficiency, but flexibility and creativity can also be valuable. 12. It is more fun to tackle a complicated problem than to solve a simple one. Answer: Rating: 5 (Agree) Reason: Complex problems can be more engaging and rewarding due to their challenging nature. 13. In the long run, it is possible to get more done by tackling small, simple problems rather than large and complicated ones. Answer: Rating: 3 (Neither Agree nor Disagree) Reason: Both approaches have their merits; tackling small problems can lead to incremental progress, while large problems can yield significant changes. 14. Often the most interesting and stimulating people are those who don’t mind being different and original. Answer: Rating: 6 (Agree) Reason: Original and unique individuals often bring fresh perspectives and ideas, making them stimulating to be around. 15. What we are used to is always preferable to what is unfamiliar. Answer: Rating: 2 (Completely Disagree) Reason: Embracing the unfamiliar can lead to growth and new opportunities, while sticking to the familiar can limit experiences. SOURCE: The Tolerance for Ambiguity Scale What about You? Applying Force Field Analysis Think of a problem you are currently facing. An example would be trying to increase the amount of study time you devote to a particular class. 1. Describe the problem, as specifically as possible. Answer: I need to increase the amount of study time I devote to my chemistry class to improve my grades. 2. List the forces driving change on the arrows at the left side of the diagram. Answer: Forces driving change: • Desire to improve grades and academic performance. • Upcoming exams and deadlines that require more study time. • Support from friends and family who encourage better study habits. 3. List the forces restraining change on the arrows at the right side of the diagram. Answer: Forces restraining change: • Current busy schedule with other commitments. • Distractions from social media and leisure activities. • Lack of a structured study plan or routine. 4. What can you do, specifically, to remove the obstacles to change? Answer: • Create a structured study schedule that fits into my existing commitments. • Use apps or tools to limit social media usage during study periods. • Set specific, achievable study goals and track progress regularly. 5. What can you do to increase the forces driving change? Answer: • Set clear, motivating goals and reward myself for meeting them. • Share my study goals with friends or family for accountability. • Join a study group for additional support and motivation. 6. What benefits can be derived from breaking a problem down into forces driving change and forces restraining change? Answer: • Provides a clearer understanding of the factors influencing the problem. • Helps in developing targeted strategies to address both driving and restraining forces. • Facilitates a structured approach to problem-solving by focusing on specific actions to enhance effectiveness. FORCES DRIVING CHANGE FORCES RESTRAINING CHANGE Issues in Diversity Changing Racial Attitudes-One Dorm Room at a Time Many U.S. colleges and universities are taking the saying, “familiarity breeds content” to a new level by assigning students of different races as roommates. Many times these assignments are out of necessity due to a decreased number of minority students on some college campuses. Other times, the roommate assignments are due to the limited number of available on-campus housing. And when students have roommate problems, they are usually told to work it out whether the roommate is of the same or a different race. Whatever the reason, this “natural experiment” has yielded some surprising results. The most interesting finding from a study of Ohio State students was that, students who remained with different-race roommates for at least ten weeks, saw an improvement in their racial attitudes. How? Just ask Sam Boakye. Ghana-born Boakye enrolled in Ohio State as a freshman and was the only black student on his dorm-room floor. He was determined to get good grades, in part, so that his white roommate would not have a basis for negative racial views. “If you’re surrounded by whites,” Boakye explains, “you have something to prove. You’re pushed to do better, to challenge the stereotype that black people are not that smart.” Racial attitudes are typically formed early in life. Many college students have had very little exposure to diversity when they arrive on campus, and as a result, have few different-race friends. And while most college classrooms have sufficient levels of diversity, one Ohio State professor suggests that classroom diversity does not have the same effect on increasing different-race friendships that living together in residence halls do. Are there conflicts between interracial roommates? Sure there are. But most of those are no different than the things that drive conflict in same-race relationships—personal property, loud music, cleanliness, or coming in late at night. Could the key to challenging racial stereotypes and negative perceptions be as simple as making a good impression? Boakye believes it could be. According to him, “…when their [white students’] first experience with a black guy isn’t so bad, they go and make more black friends.” Questions 1. What deep-level diversity issues may be relevant here? Answer: Deep-level diversity issues: These include biases and stereotypes formed by limited exposure to different racial groups, which can affect interpersonal relationships and perceptions. Additionally, the dynamics of roommate interactions can challenge or reinforce these biases, impacting long-term racial attitudes. 2. Would you support college residence policies that required different-race roommate pairings to increase campus diversity? Why or why not? Answer: Support for policies: Yes, I would support such policies. They promote increased understanding and reduce racial biases by fostering personal connections between students of different races, which can lead to a more inclusive and accepting campus environment. 3. Would you support college residence policies that required different-race roommate pairings to increase campus diversity? Why or why not? Answer: Challenges of enforced pairing: While beneficial, forced roommate pairings might lead to superficial compliance rather than genuine understanding. It’s crucial to complement such policies with educational programs and support to address underlying biases and encourage meaningful intercultural interactions. SOURCE: T. Lewin, “Interracial Roommates Can Reduce Prejudice,” The New York Times (July 8, 2009). Experiential Exercise Organizational Diagnosis of the University The purpose of this exercise is to give you experience in organizational diagnosis. Assume that your team has been hired to conduct a diagnosis of problem areas in your university and to make preliminary recommendations for organization development interventions. Each team member should complete the following University Profile. Then, as a team, evaluate the strengths and weaknesses within each area (academics, teaching, social, cultural, and administrative) using the accompanying University Diagnosis form. Finally, make recommendations concerning organization development interventions for each area. Be as specific as possible in both your diagnosis and your recommendations. Each team should then present its diagnosis to the class. University Profile Not True Very True 1 2 3 4 5 I. Academics 1 2 3 4 5 1. There is a wide range of courses to choose from. 1 2 3 4 5 2. Classroom standards are too easy. 1 2 3 4 5 3. The library is adequate. 1 2 3 4 5 4. Textbooks are helpful. II. Teachers 1 2 3 4 5 1. Teachers here are committed to quality instruction. 1 2 3 4 5 2. We have a high-quality faculty. III. Social 1 2 3 4 5 1. Students are friendly to one another. 1 2 3 4 5 2. It is difficult to make friends. 1 2 3 4 5 3. Faculty gets involved in student activities. 1 2 3 4 5 4. Too much energy goes into drinking and goofing off. IV. Cultural Events 1 2 3 4 5 1. There are ample activities on campus. 1 2 3 4 5 2. Student activities are boring. 1 2 3 4 5 3. The administration places a high value on student activities. 1 2 3 4 5 4. Too much emphasis is placed on sports. 1 2 3 4 5 5. We need more “cultural” activities. V. Organizational/Management 1 2 3 4 5 1. Decision making is shared at all levels of the organization. 1 2 3 4 5 2. There is unity and cohesiveness among departments and units. 1 2 3 4 5 3. Too many departmental clashes hamper the organization’s effectiveness. 1 2 3 4 5 4. Students have a say in many decisions. 1 2 3 4 5 5. The budgeting process seems fair. 1 2 3 4 5 6. Recruiting and staffing are handled thoughtfully with student needs in mind. University Diagnosis Strength Weakness Intervention 1. Academic 2. Teaching 3. Social 4. Cultural 5. Administrative SOURCE: “Organizational Diagnosis of the University” by D. Marcic, Organizational Behavior: Experiences and Cases (St. Paul, Minn.: West Publishing Company, 1989), 326–329. Reprinted by permission. Experiential Exercise Team Building for Team Effectiveness This exercise will allow you and your team to engage in an organization development activity for team building. The two parts of the exercise are diagnosis and intervention. Part 1. Diagnosis Working as a team, complete the following four steps: 1. Describe how you have worked together this semester as a team. Answer: This semester, our team has collaborated through regular meetings, clear role assignments, and mutual support. 2. What has your team done especially well? What has enabled this? Answer: We excelled in communication and meeting deadlines, thanks to our organized planning and open dialogue. 3. What problems or conflicts have you had as a team? (Be specific.) What was the cause of the problems your team experienced? Have the conflicts been over ideas, methods, or people? Answer: Conflicts arose mainly over differing ideas and methods, often stemming from unclear expectations and deadlines. 4. Would you assess the overall effectiveness of your team as excellent, good, fair, poor, or a disaster? Explain your effectiveness rating. Answer: Overall, I would rate our team effectiveness as "good" due to strong collaboration but with room for improvement in conflict resolution and clarity. Part 2. Intervention A diagnosis provides the basis for intervention and action in organization development. Team building is a way to improve the relationships and effectiveness of teams at work. It is concerned with the results of work activities and the relationships among the members of the team. Complete the following three steps as a team. Step 1. Answer the following questions with regard to the relationships within the team: a. How could conflicts have been handled better? b. How could specific relationships have been improved? c. How could the interpersonal atmosphere of the team have been improved? Step 2. Answer the following questions with regard to the results of the team’s work: a. How could the team have been more effective? b. Are there any team process changes that would have improved the team’s effectiveness? c. Are there any team structure changes that would have improved the team’s effectiveness? Step 3. Answer the following questions with regard to the work environment in your place of employment: a. What have you learned about team building that you can apply there? b. What have you learned about team building that would not be applicable there? Experiential Exercise Crusty Rusty Role for Jesse Becker, Junior Accountant You are a junior accountant for the National Quik Service Company (QSC) out of Dallas. You have been working at this job for six months, this being your first “real” job since graduating from the University. You have just completed a computerized statistical analysis system for payroll that was well received by the terminal managers. It provided more relevant and current information than they have ever had before. Both you and the managers are enthusiastic about the success of the system and the potential of other computerization for the company. Suddenly, your opportunities have expanded throughout the organization. This afternoon you have a meeting with Rusty Griffen, the specialist in the division concerning dispatching, which is the next project the managers have jokingly said “couldn’t be undertaken before Rusty retires.” At the present time, dispatching is determined manually, resulting in numerous errors and requiring a great deal of memory for one individual. The major problem is that often two trucks would be dispatched to pick up the same loads at different times. You feel that a computerized inventory system similar to ones used by other transportation industries could be used as a model. You have tried to work with Griffen in the past. You feel all of your ideas have been bucked at every opportunity, particularly regarding anything remotely involving change. You feel Griffen’s idea of automation is to get a larger piece of paper divided into more columns and a copier that could reproduce this master to the same size in color. Rusty does not trust the computer ever since there was a deduction taken out of a paycheck in 1982. Rusty will retire in 8 years, and it seems to you that any change now will threaten the security that this position has built over the years. With Rusty’s attitude toward change, you feel the trucking industry would still be in the pony express days. You sincerely believe the proposed system could improve and set your organization apart in the freight hauling industry. Well, time to head up to Rusty’s office for that chat. Experiential Exercise Crusty Rusty Role for Rusty Griffin, Senior Dispatcher You are the dispatcher in charge of 400+ trucks. In another 8 years, you will be retiring from the company with 30 years’ service. Prior to the dispatcher job, you worked as an independent operator and were noticed by your supervisors for your meticulous and accurate reporting of your trips, and consequently, you were promoted to the dispatcher position. You have the task of summarizing the day-to-day activities and projecting future loading points. You have quite a system worked out with west coast trucks indicated in blue, inbound noted by red, unloaded and ready for the trip back, another color, etc. This afternoon you are to meet with Jesse Becker, the new computer whiz. Your supervisor heard about a computer system used to manage another company at a recent conference. You feel the afternoon will be wasted since you have many trucks to record and update, since a fluid that was not pure was pumped into 15 outgoing trucks. You feel these computer kids don’t understand the first principles of the trucking industry. If they did, they would not have all these fancy and costly ideas. Anyhow, you feel that if you put the data in the computer, you would never really be sure it’s there, just like the time your paycheck got mixed up and then those computer people couldn’t correct it. Well, it is time for the meeting. You hope the kid, whose total years of age don’t even come close to your years of experience, doesn’t try to tell you how to do your job. Experiential Exercise Crusty Rusty Questions for Role Play Observers * Did Jesse introduce himself/herself? Answer: Yes, Jesse introduced himself/herself at the beginning of the interview, establishing his/her identity and role. * Were the objectives for the interview clear to Rusty? Answer: The objectives for the interview were made clear to Rusty, with Jesse outlining the purpose and goals of the discussion right away. * Who talked the most? Answer: Jesse talked the most during the interview, primarily driving the conversation and providing most of the information and direction. * Was there any small talk? Answer: There was minimal small talk; the conversation quickly shifted to the main topics of the interview, focusing on relevant issues. * Were there any non-verbal indicators expressed by either person? Answer: Yes, both Jesse and Rusty used non-verbal indicators such as body language and facial expressions to convey their engagement and reactions. Jesse might have used gestures to emphasize points, while Rusty’s non-verbal cues could have reflected his level of interest or discomfort. * Was more time spent on obtaining information or obtaining acceptance? Answer: More time was spent on obtaining information. Jesse focused on gathering details relevant to the interview’s objectives, rather than primarily seeking Rusty’s acceptance. * What change strategy did Jesse take? Answer: Jesse employed a direct and informative change strategy, focusing on presenting facts and outlining clear steps rather than using persuasion or negotiation tactics. * What conflict style did Jesse and Rusty adopt? Answer: Jesse adopted a collaborative conflict style, aiming for a solution that addressed both parties’ needs. Rusty’s conflict style might have been more passive or accommodating, aligning with Jesse’s approach to reach a consensus. * What type of power does each of the individuals have? Answer: Jesse likely possesses expert power, based on his/her knowledge and authority in the situation. Rusty may have positional power or influence due to his/her role or experience. * Other comments? Answer: The interaction appeared structured and focused, with Jesse effectively steering the conversation and ensuring clarity of purpose. It would be useful to assess whether Rusty felt fully engaged and whether there were any unaddressed concerns or misunderstandings that emerged. Case Study CarMax, the Used Car Superstore: Learning for Performance Improvement CarMax, the nation’s largest retailer of used cars, is headquartered in Richmond, Virginia where its first store was opened. CarMax has “grown from that one store in Richmond to more than 100 stores across the country.” CarMax promotes itself with the following verbiage on its corporate Web site: “We’ve sold more than 2 million cars. We’ve appraised more than 5 million. And the news is buzzing with stories about CarMax, the experience we offer our customers, and the work environment we provide for our Associates.” The operations of CarMax are guided by its five-point business concept. The five points of the business concept are: • “We offer tens of thousands of used cars across the country[;] • “Every car we sell has a low, no-haggle price[;] • “Our vehicles are superior in quality. Only the best cars meet our high standards[;] • “We’ll buy your car whether you buy from us or not[; and] • “You’ll get friendly customer service.” Writing in The RMA Journal, Casey Thormahlen and George Van Horn, suggest that new car dealers that also sell used cars can learn a great deal from CarMax. They say that “[n]ew-car dealers looking to expand their used-car operations should take a page out of CarMax’s playbook. CarMax has consistently outpaced its more traditional rivals by offering a more pleasant buying experience. Sales commissions are set on a per-vehicle basis (rather than by percent of sale), prices are fixed, and buyers are given a transparent, itemized price breakdown. A robust parts and services department creates further economies of scale for dealers choosing this path, allowing for modest repairs that enhance the resale value of incoming trade-ins.” CarMax asserts that its operations are firmly based on a foundation of 10 values that seek to treat customers, CarMax associates, and investors with trustworthiness and ethical practices while merging the best retail practices with the needs and demands of the automotive industry. One of the 10 values guiding CarMax is continuous improvement. With regard to continuous improvement, the CarMax Web site states: “We will never stop improving our systems, our processes, and our policies.” In short, CarMax is committed to organizational change that continually improves how the company operates. CarMax’s commitment to continuous improvement relies heavily upon learning. The Talent management process is one major way by which CarMax capitalizes on continuous learning. The use of learning loops is a second major way by which CarMax fosters continuous improvement. Talent Management for Continuous Learning CarMax has strategic goals for talent management to ensure that its workforce has the necessary skills to support company performance. According to Sean Ramage, CarMax’s Director of Talent Management, “Our company has put a strong emphasis on the importance of core competencies that drive behavior, which, in turn, drives performance. Based on our short- and long-term goals, we partner with company leadership to put together programs that support the competency needs/gaps that drives the desired performance goals.” Ramage also points out that CarMax regularly surveys its associates and managers to ascertain what is needed to achieve their individual work objectives and to improve performance. CarMax combines this survey data with assessment data from other sources, including but not limited to performance reviews and management assessment programs. Ramage indicates that this comprehensive assessment approach links employee competencies with business objectives, and promotes a genuine continuous learning process. As part of the continuous learning process, CarMax closely monitors trends in talent management and human resources, as well as overall societal trends. And CarMax also closely monitors emerging technologies to provide the right tools help associates develop the competencies they need to have in order to excel at their roles. Learning Loops Another way in which CarMax incorporates learning into its continuous improvement commitment is through learning loops. Successful learning loops incorporate five basic features. First, the company develops effective performance measures and targets that are linked to the firm’s values vision, and goals. Second, performance information is communicated quickly, clearly, and usefully. Third, performance information is shared with the right people, and they are empowered to act on the information. Fourth, people are encouraged to suggest changes to improve performance, and the company works to overcome barriers to implementing performance improvements. Fifth, the company monitors the process to ensure that its learning loops are, in fact, fostering increased learning and increased performance. These features can be seen in CarMax’s use of learning loops, which “can be implemented anywhere in the organization to accelerate the pace of change” At CarMax, CEO Austin Ligon holds regular sessions with employees to share the latest performance information. During a collaborative analysis of the shared information, Ligon asks questions such as: “What is it that we may be doing that could be considered unnecessary, or stupid?” Ligon actively participates in these brainstorming sessions, making sure that “every idea is recorded and receives a response.” Learning for Performance Improvement In considering the question What is the key to improving performance?, learning seems to be the unequivocal answer for CarMax. Is this also a viable answer for other businesses? Discussion Questions 1. How is continuous improvement linked to organizational change? Answer: Continuous improvement is linked to organizational change by fostering ongoing adjustments and enhancements that adapt to evolving conditions, driving incremental and strategic changes that keep the organization competitive and responsive. 2. What external forces for change are likely to influence CarMax’s commitment to continuous improvement? Answer: External forces for change influencing CarMax include market trends, regulatory changes, technological advancements, and competitive pressures, all of which necessitate adaptations to maintain relevance and efficiency. 3. What internal forces for change are likely to influence CarMax’s commitment to continuous improvement? Answer: Internal forces for change at CarMax involve organizational culture, leadership initiatives, employee feedback, and internal performance metrics, which drive the need for continuous improvement to enhance operations and employee satisfaction. 4. Explain CarMax’s use of (a) talent management for continuous learning and (b) learning loops from the perspectives of incremental change, strategic change, and transformational change. Answer: CarMax’s use of (a) talent management involves developing employee skills and capabilities to support ongoing improvements, addressing incremental, strategic, and transformational changes by aligning talent with evolving organizational goals. (b) Learning loops facilitate feedback-driven adjustments and refinements, promoting a culture of learning and innovation across all change levels. 5. What are the primary organizational development interventions that are embedded in CarMax’s fostering of learning for continuous improvement? Answer: Primary organizational development interventions at CarMax include leadership development programs, employee training and development, performance management systems, and feedback mechanisms, all aimed at fostering a culture of continuous learning and improvement. SOURCE: THIS CASE WAS WRITTEN BY MICHAEL K. MCCUDDY, THE LOUIS S. AND MARY L. MORGAL CHAIR OF CHRISTIAN BUSINESS ETHICS AND PROFESSOR OF MANAGEMENT, COLLEGE OF BUSINESS ADMINISTRATION, VALPARAISO UNIVERSITY. Cohesion Case: Part 4 DonorsChoose.org: Building Toward the Future (D) Although DonorsChoose is a nonprofit organization, a charitable organization by most any standard, it operates as though it is a businessalbeit a highly effective and efficient one. Much like many contemporary businesses, DonorsChoose is structured around a series of interconnected teams. Guided by Charles Best, an executive team of eight members runs DonorsChoose.org. Other teams include marketing, finance, operations and human capital, partnerships and business development (one such team for the east region, one for the west region, and one for national headquarters), and technology and user experience. In addition, the organization is guided by (a) a board of directors, consisting of over a dozen members from a variety of organizations and career paths, and (b) a national advisory council, consisting of over two dozen members, also with varied backgrounds involving substantial responsibility. Just as the members of the board of directors and national advisory council come from all walks of life, so do the members of the various DonorsChoose management teams and other staffers come from varied backgrounds, and they bring varied skills, experiences, and talents to the organization. The common bond among them all, however, is a strong interest in and commitment to the effective public education of America’s children. As a nonprofit, acting much like an extraordinarily well-managed business seeking to achieve optimal effectiveness and efficiency, DonorsChoose must capitalize on the opportunities that exist in the marketplaceonly this is the marketplace of charitable giving. In this marketplace, DonorsChoose.org is taking advantage of two major opportunities: (1) the social connectedness of individuals, particularly younger people; and (2) the philanthropic and social responsibility inclinations of businesses and business people. Opportunities Rooted in Social Connectedness The social connectedness of people in contemporary society is facilitated and strengthened by social media technology. “People’s interactions through Web sites, cellphones, chat rooms, personal digital assistants, iPods, and other gadgets and gizmos have transformed society from the information age to the connected age. These digital tools are important not for their wizardry but because they’re inexpensive, easy to use, and allow individuals and small groups to bring about big changes.” “The greatest challenge for nonprofit leaders in the connected age is adopting a new mind-set for social change. Power is shifting from institutions to individuals throughout society. Successful connected-age organizations are those that facilitate broad networks of social activists, not necessarily organizations with the biggest membership lists or the most money in their coffers.” Perhaps this helps explain the growing popularity among younger people of online charitable organizations like DonorsChoose. Their social consciousness, coupled with their social networking proclivities and their technological savvy, provides a significant but challenging opportunity for charities that operate online. All organizationsnonprofit and for-profitwill need to change in order to capitalize on these opportunities. Indeed “[y]oung people aren’t going to change; they’re going to bring their passions and connectedness to their future organizational lives. Nonprofit organizations need to change to accommodate these young people’s work ways and make the most of the connected age.” Vinod Khosla, a well-known venture capitalist, places DonorsChoose alongside the most innovative for-profit technology companies in that it leverages the connectivity of the Internet. Eileen White, managing director of charitable services at Goldman Sachs, states: “[T]he Web is proving invaluable in connecting people in need with those who can give. ‘It’s a whole new way of giving.’” Opportunities Rooted in Philanthropic and Socially Responsible Businesses and Business People In the first few years of its life, DonorsChoose focused on soliciting donations from individual contributors. Then in the mid-2000s, the nonprofit began focusing some of its attention on how DonorsChoose could effectively partner with business leaders and business organizations in order to make further inroads into funding public school teachers’ educational projects. In March 2008, Fortune magazine reported that DonorsChoose “went live in all 50 states, thanks to a $14 million donation that included money from eBay founder Pierre Omidyar and Yahoo co-founder David Filo. [Venture capitalist] Vinod Khosla also contributed and helped structure the funding to be less restrictive than a typical grant.” Additional business support for DonorsChoose initiatives have come from John Langan and Judy Nadell, the founders of Townsend Press. Langan and Nadell are committed to the belief that education can be vastly improved when children have access to books to which they can relate. They gave DonorsChoose a $1 million grant to help improve childhood literacy. Charles Best says, “We’re using their grant to fuel what we call citizen philanthropygetting that $20 donor to fund a project that would otherwise seem out of your reach because of a philanthropic discount from a bigger donor.” To further stimulate individual donor interest in funding educational projects, DonorsChoose developed a variety of charitable initiatives in conjunction with various businesses. This enabled DonorsChoose to connect with the customers of those organizations. For instance, some banks are presenting DonorsChoose gift certificates to their high-net-worth customers as a simple ‘thank you’ for their business; the gift certificates allow the banks’ customers to target their donations to a project or projects of their own choosing. Charles Best, the DonorsChoose CEO, observes that “it’s often difficult to provide wealthy clients with gifts they view as significant. A lot of banks struggle with what to give their high-net-worth clients, [what to give] to the person [who] has everything. But this is something that people see as being meaningful, even for a bajillionaire.” According to Best, “[a] growing number of banks are using DonorsChoose to give a unique gift to customers, suppliers and employees”, and they have become a significant component of the nonprofit’s strategy. In another partnering initiative, eBay presented 19,900 DonorsChoose gift certificates to users of its Giving Works program; the average value of the certificates was $65. Interestingly, Charles Best compares DonorsChoose “to the eBay model where teachers are the sellers and donors are the buyers.” Google “gave its AdSense clients $100 gift cards for DonorsChoose.org, which allowed them to choose where to make their donations.” Yahoo gave DonorsChoose gift certificates to their employees as well as advertisers. As a holiday gift, 12,000 Yahoo employees received $100 gift certificates to redeem, and 1,500 advertising clients received $70,000 worth of DonorsChoose gift certificates. These businesses’ philanthropic initiatives also provide a useful lesson for other organizations. Researchers Michael Norton and Elizabeth Dunn, respectively of the Harvard Business School and the University of British Columbia, suggest that many companies could alter their own in-house donation programs to encourage generosity and give employees an option regarding how philanthropic funds are allocated. Their reasoning: there will be a positive impact on employees as they become aware that spending money on others will make them feel better. The “Bottom Line” for DonorsChoose.org All of the initiatives undertaken by DonorsChoose.org are having a substantial collective impact on public education in America. DonorsChoose.org keeps extremely close tabs on the impact of its activities. Impact measures are updated on a daily basis. On May 28, 2011, as this case is being written, Donors Choose has raised $83,988,155, which has funded 204,203 projects at 45,984 schools, thereby helping 4,975,788 students. The donations supported the acquisition of books (26 percent of funded resources), technology (25 percent), classroom supplies (38 percent), field trips and class visitors (1 percent), and other resources (9 percent). Also as of May 28, 2011, project requests were posted by 179,462 teachers; and 63 percent of the projects received full funding. And perhaps the ultimate measure of the organization’s impact on public education in America is this: 94 percent of the teachers say the funded projects increased their effectiveness in the classroom. Without a doubt, Donors Choose.org has made substantive progress in fulfilling its mission of “engag[ing] the public in public schools by giving people a simple, accountable and personal way to address educational inequity” and its vision of “a nation where children in every community have the tools and experiences needed for an excellent education.” Not only has DonorsChoose made significant progress in fulfilling its mission and vision, the nonprofit “has become something of a template for charitable giving in education. As far away as Hong Kong, entrepreneurs have developed a Chinese version, at edexchange.com, to connect Chinese teachers with donors.” Given how DonorsChoose.org has helped to transform the educational landscape through charitable funding in the past decade, one cannot help but wonder what the next decade might bring? Discussion Questions 1. DonorsChoose.org is structured like many contemporary business organizations. Do you think this structural similarity is useful for a charity, or should charities not try to emulate the organizational structures of for-profit organizations? Explain your answer. Answer: Structural similarity to for-profit organizations can be useful for charities like DonorsChoose.org as it promotes efficiency, scalability, and clear management practices, aligning operational goals with strategic outcomes while leveraging business-like structures to enhance effectiveness. 2. Based upon what might be inferred from the organizational structure of DonorsChoose, and what you have learned about the organization from the DonorsChoose (A), (B), and (C) cases earlier in the text, how would you describe the organization’s culture? Answer: DonorsChoose’s culture is likely characterized by innovation, transparency, and a strong focus on community impact, reflecting its mission-driven approach and commitment to connecting donors directly with educational projects. 3. Referring to your responses to questions 1 and 2, how does the DonorsChoose structure and culture position it to capitalize on the social connectedness trend? Answer: The structure and culture of DonorsChoose align well with the social connectedness trend, using technology and transparent communication to build strong donor relationships and engage a broad network of supporters effectively. 4. Is the development of various collaborative initiatives with a variety of businesses a wise strategic move for DonorsChoose? Do these collaborative initiatives fit with the structure and culture of DonorsChoose? Explain your answer. Answer: Collaborative initiatives with businesses are a strategic fit for DonorsChoose, complementing its structure and culture by enhancing resource acquisition and expanding its reach, while aligning with its values of innovation and partnership. 5. Could you envision your career involving, at least for a reasonable period of time, work for a nonprofit organization? How has the knowledge you’ve gained about DonorsChoose.org affected your thinking about working for a nonprofit? Answer: Considering a nonprofit career could be appealing, as understanding DonorsChoose.org’s impact highlights the meaningful, mission-driven work in the sector, potentially increasing interest in contributing to similar causes. 6. Go to the DonorsChoose.org Web site and look for the current information regarding the nonprofit’s impact on American public education. What conclusion do you draw by comparing the current data to that of May 28, 2011? Answer: Comparing current data to May 28, 2011, reveals whether DonorsChoose has expanded its reach and impact, assessing progress in supporting educational projects and the growth of its donor base. 7. Will DonorsChoose be able to continue to adapt and develop in order to make even more progress in fulfilling its mission and vision? Explain your answer. Answer: DonorsChoose is likely to continue adapting and evolving, leveraging its innovative culture and strategic collaborations to advance its mission, meet emerging needs, and further enhance its impact in education. SOURCE: THIS CASE WAS WRITTEN BY MICHAEL K. MCCUDDY, THE LOUIS S. AND MARY L. MORGAL CHAIR OF CHRISTIAN BUSINESS ETHICS AND PROFESSOR OF MANAGEMENT, COLLEGE OF BUSINESS ADMINISTRATION, VALPARAISO UNIVERSITY. Anonymous, “About CarMax,” CarMax Web site, http://www.carmax.com/enus/company-info/about-us.html (accessed February 7, 2014). Anonymous, “About CarMax,” CarMax Web site, http://www.carmax.com/enus/company-info/about-us.html (accessed February 7, 2014). Anonymous, “About CarMax,” CarMax Web site, http://www.carmax.com/enus/company-info/about-us.html (accessed July February 7, 2014). C. Thormahlen and G. 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Banjo, “Heard & SceneDonor of the Day: Helping Children Develop a Connection to Books,” The Wall Street Journal (Eastern edition) (February 23, 2011): A.23. S. Banjo, “Heard & SceneDonor of the Day: Helping Children Develop a Connection to Books,” The Wall Street Journal (Eastern edition) (February 23, 2011): A.23. L. Conrad, “BofA, RBC Offer the Gift of Giving,” US Banker 117(2) (February 2007): 10. L. Conrad, “BofA, RBC Offer the Gift of Giving,” US Banker 117(2) (February 2007): 10. L. Conrad, “BofA, RBC Offer the Gift of Giving,” US Banker 117(2) (February 2007): 10. E. steel, “Novel Program Blends Charity and Marketing,” The Wall Street Journal (Eastern edition) (December 20, 2006): B.1. L. Conrad, “BofA, RBC Offer the Gift of Giving,” US Banker 117(2) (February 2007): 10. S. Prashad, “Pursuit of Happiness,” Canadian Business 81(14/15) (September 15, 2008): 20. E. steel, “Novel Program Blends Charity and Marketing,” The Wall Street Journal (Eastern edition) (December 20, 2006): B.1. S. Prashad, “Pursuit of Happiness,” Canadian Business 81(14/15) (September 15, 2008): 20. DonorChoose.org, Our Team, http://www.donorschoose.org/about/meet_the_team.html#senior (accessed February 7, 2014). DonorsChoose.org, Who We Are, http://www.donorschoose.org/about/how_it_works.html (accessed February 7, 2014). J. Hempel, “School Aid: It Takes a Web Site,” Bloomberg Businessweek (September 26, 2005), http://www.businessweek.com/stories/2005-09-25/school-aid-it-takes-a-web-site (Accessed February 21, 2014 Solution Manual for ORGB Organizational Behavior Debra L. Nelson, James Campbell Quick 9781305663916, 9781337148443
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