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This Document Contains Chapters 15 to 16 Chapter 15 Change, Conflict, and Negotiation END OF CHAPTER FEATURES • Terms to Understand – encourage students to make use of the flashcards available on the student website. Also, suggest they visit the Manager’s Toolkit section on the website for tips and suggestions for aspiring managers. • Action Learning Exercise – Putting Conflict on Ice. Have students in groups or individually explore the Iceberg Conflict and answer the subsequent questions. After completing the exercise, have them respond to the questions for discussion that follow. • Ethics Exercise – Do the Right Thing – I’m Wrong! Have students read the words of wisdom from Tyler Cowen and then respond to the ethical questions that follow. Possible responses they are likely to offer are included. What are the ethical implications of the following interpretations? 1. Friends are friends and enemies are enemies. To say you’re sorry is to show weakness, which encourages others to take advantage of you. Answer: You may think you are lucky to have someone like this on your side. However, in the long-run this attitude will create a situation so toxic people will no longer work with this person. 2. It is best to simply avoid those who annoy you to prevent conflict. Answer: This is the fight or flight instinct at work. Most people do not enjoy fighting; as a result they will walk away rather than go to battle. This may be admirable if the person has the wisdom to choose their battles, however, this can be a big problem for management if a person knows something important but chooses not to share it simply because they are trying to avoid conflict. 3. In appropriate situations, admitting you’re wrong in an argument with a friend or loved one or in a disagreement with an adversary can actually boost your self-esteem and strengthen your public image. Answer: One way to ensure that people lose respect for you is to be stubborn and hold onto an opinion that is clearly wrong. People will view you as egotistical – so worried about looking bad for being wrong that you actually paint a picture of foolishness. You will ultimately feel better and people will have more respect for you if you are willing to step back, look at the facts and listen to another person’s perspective. You will demonstrate humility and integrity. 4. Your own ethical interpretations? Answer: When framing my own ethical interpretations regarding management's social and ethical responsibilities, I believe that ethical management involves a commitment to transparency, fairness, and accountability. Managers must prioritize the well-being of employees, customers, and the community while making decisions that balance profit with social good. Ethical responsibilities also include respecting environmental sustainability, promoting diversity and inclusion, and upholding integrity in all business practices. Ultimately, ethical management requires a proactive approach to identifying and addressing ethical dilemmas, fostering a culture of ethical behavior, and ensuring that the organization contributes positively to society • Managers-In-Action Video Case Study – Schofield Honda chapter 15 Managers-in-action video case study:
Scholfield honda – change & innovation Length: 6 minutes and 29 seconds Topics: Change, Innovation, Challenges, Analysis, Infrastructure, Competitive, Alternative Fuel, and Employees. Company Background From the Scholfield Honda Website on January 31, 2011: THE HONDA WAY Scholfield Honda's Exclusive 7 Year/100,000 Mile Warranty on All New Hondas FAMILY OWNED. FAMILY RUN. Owners Roger and Vic Scholfield have been in the automotive business for 25 and 57 years respectively. There are no Outside Management teams or agreements, absentee owners or key decision makers not on the premises. Roger can be found Monday through Friday in his office on the showroom floor. That's right. The guy you see on t.v. and whose name is on the sign outside is in the first office you see on the showroom floor. Roger believes in conducting all transactions in a friendly, down to earth business approach. Our staff knows he wants to personally meet every guest that comes through our doors. Direct access to our Managers. Our managers are professional, friendly and most importantly, ACCESSIBLE. No ivory towers or man behind the curtain here. At any time during your visit that you wish to speak to a manager, you can. In fact, they LOVE to meet people as soon as they arrive. This helps us know what you're looking for and get's everyone on the same page. Their main focus is to provide assistance to you and our consultants in selecting the right model and options to fit your budget. If we need to locate or order your vehicle for you, they will assist in the process. And they are all on DIRECT REPORT to owner Roger Scholfield on a daily basis. A professional sales staff. Our Team is comprised of trained and certified consultants armed with the knowledge to provide you with the information you need to make your decision. NO HIGH PRESSURE SALES TACTICS. We'll gladly appraise your vehicle here at the dealership (and offer you a complimentary FREE CAR WASH as our way of saying Thanks for giving us a chance to earn your business) and give you figures in person with no obligation to buy today. We'll offer you 9 different payment options based on different TERMS and DOWN PAYMENTS that fit your budget. We can offer you 9 different LEASE OPTIONS as well. 20% of our clients choose this option as a way of lowering their payment. American Honda Finance Corporation is one of the few finance companies still offering Leasing as an option to consumers. And we love shoppers! The more informed you are, the more reason we feel you will be back to purchase a Honda product. FULL DISCLOSURE on every worksheet. All fees, taxes and added accessories are presented up front so you know the TOTAL DRIVEAWAY COST of your vehicle. These are professionally printed and signed by a manager. No hand written offers on the back of a business card and not authorized by a manager. Family Values. Our Team Members comprise the Scholfield Honda Family and when you purchase or service your vehicle at one of our 2 convenient locations, you're joining our family as well. We offer extended sales hours to accommodate all schedules. Monday-Thursday we are open from 9am-8pm, Fridays from 9am-7pm and Saturdays from 9am-6pm. Of course, our website,, is open 24 hours a day, 7 days a week. We encourage its use to help cut down on your time walking the lot. Our entire inventory of New and Used Vehicles are listed with prices and descriptions. We are CLOSED SUNDAYS and all MAJOR HOLIDAYS to allow our Team Members, our most valued asset, to spend precious time with their families and to worship at the church of their choice. We work hard when we are here and feel that one day a week you have to take time to stop and smell the roses. Feel free to browse the lots when we're closed, email or call us the very next day and we'll take care of all your arrangements. We offer a dedicated Internet Department that can assist you on line for those with busy schedules and from outside the city limits. Scholfield Honda has partnered with Enterprise Rental Cars for a heavily discounted rate of just $10 a day for service loaners. We also offer FREE INTERNET ACCESS, CABLE TELEVISION, COMPUTERS, FREE STARBUCKS COFFEE BAR, USA TODAY AND CURRENT PERIODICALS for your enjoyment during your brief wait. We also have one of the largest DETAIL DEPARTMENTS in the state. We Detail all makes and models starting as low as $89.95. FREE CAR WASH with EVERY courtesy appraisal and SERVICE APPOINTMENT. Two service locations. East at 7017 E. Kellogg and West at 8880 West Central (Central & Tyler). Make your service appointments through the internet. Service Discounts AND SPECIAL DAYS for MILITARY, SENIORS AND LADIES. We are dedicated to the Environment. We recycle throughout the dealership. Waste oil is used to heat our shops in the winter. We recycle cardboard packaging, paper, bottles, cans, tires, batteries, ink cartridges and metal. And now, IT PAYS FOR YOU TO RECYCLE too! When you sign up with Waste Connections home recycling program you can earn credits redeemable for $5 off an Express Oil Change at Scholfield Honda. Check out our website for more details. We are the ONLY place in Wichita to buy a Honda Certified Used Car and carry an extensive selection of used cars, trucks and vans across all makes and models and prices starting as low at $5995 and sometimes less. Synopsis of Video Change & Innovation Roger Scholfield, owner of Scholfield Honda shares his perspective on managing a constantly changing environment. He discusses Honda Corporation’s twenty-five year business plan that incorporates everything from consumer safety to concerns for the environment. The car industry is a competitive market where businesses like Scholfield Honda must innovate to remain on top. In this video, you will learn about one employee, Lee Lindquist, who made a difference by initiating change. Discover Lindquist’s secrets to getting his boss to agree to implement is idea, to sell Natural Gas Powered Vehicles. Lindquist avoids initial resistance to change but his dealership stills has some challenges to overcome. What’s next for this innovative business? For more information about Scholfield Honda visit their website: Previewing Questions 1. Why is managing change an important topic to include in a Management textbook? Answer: We live and work in a world that is rapidly changing. Technology and the global economy have helped increase the pace of change. Effective managers need the ability to help guide their employees and their organization through change. 2. Why do most people resist change? Answer: Most people find comfort in consistency. Change threatens to knock the “norm” out of balance. In addition, all too often organizations fail to involve employees in the change process (like Zugheri in the opening case). Most people do not respond well to surprises. Fear of the unknown and fear of failure are also common reasons why people resist change. 3. How do you respond to change? Answer: When responding to change, I approach it with a mindset of adaptability and openness. I recognize that change is an inevitable part of both personal and professional growth, and I strive to view it as an opportunity rather than a challenge. Here are the steps I typically follow: 1. Assessment: I start by assessing the nature and scope of the change. Understanding why the change is happening and how it impacts my work or personal life helps me gain clarity and reduces uncertainty. 2. Positive Attitude: I maintain a positive attitude, focusing on the potential benefits the change can bring. This perspective helps me stay motivated and resilient, even when the change is difficult. 3. Learning and Development: I seek to learn new skills or gain knowledge that will help me adapt to the change. Continuous learning ensures that I am well-prepared to handle new challenges and seize new opportunities. 4. Communication: I engage in open communication with colleagues, mentors, and stakeholders to gather different perspectives and insights. This collaborative approach helps me understand the change better and find effective ways to manage it. 5. Flexibility: I remain flexible and willing to adjust my plans and strategies as needed. Being adaptable allows me to navigate through the change smoothly and efficiently. 6. Support Systems: I rely on my support systems, including mentors, peers, and family, for guidance and encouragement. Their support helps me stay grounded and focused during transitional periods. 7. Action Plan: I develop a clear action plan to manage the change. This includes setting achievable goals, identifying necessary resources, and establishing timelines to ensure a structured approach to the transition. 8. Reflection and Feedback: After the change has been implemented, I take time to reflect on the process and seek feedback. This helps me identify areas for improvement and better prepare for future changes. By approaching change with these strategies, I can effectively manage transitions and turn potential challenges into opportunities for growth and development. Postviewing Questions 4. Who initiated change at Scholfield Honda? Answer: At Scholfield Honda, the change was initiated by the dealership's general manager, Lloyd Scholfield. He recognized the need for change in the dealership's operations and culture to improve performance and customer satisfaction. Lloyd Scholfield took the lead in implementing various changes, such as restructuring the sales process, improving customer service, and enhancing employee training and engagement. His proactive approach to change management was instrumental in transforming Scholfield Honda into a more successful and customer-focused dealership. 5. How was he successful in getting the owner to agree to sell Natural Gas Powered Vehicles? Answer: He was effective in presenting the change in terms of what was in it for the dealership. He identified a target market (fleet customers) and provided research data that included the fact that this is the cleanest engine on the planet so they will be a leader in the environmental market while also combating rising fuel prices. 6. What can other business owners and managers learn from Roger Scholfield about embracing change for competitive advantage? Answer: Scholfield demonstrates that listening to your employees can pay big dividends. In addition, he is embracing change and accepting that they are the leaders in an untapped market. He properly prepared his organization for success by training technicians and gathering necessary research data to effectively show prospective customers examples of success. 7. Scholfield Honda has a vision for ongoing change that includes increasing the sales of Natural Gas Powered Vehicles. They face a few challenges that are beyond their direct control. What do you suggest they do to develop a win-win approach and negotiate for the infrastructure improvements necessary? Answer: The biggest challenge they face is trying to get more infrastructure in place in Kansas and the mid-west. The lack of public fill stations for NGPVs limits their ability to sell beyond the fleet customers. The win-win is to get the state to invest in a publicprivate development project. This will benefit the state as it is the primary source of natural gas. In the long-run, Kansas’ success with NGPVs will be a national model which can lead to greater export opportunities for the natural gas providers. In addition, they can take credit for voluntarily contributing to better environmental quality through programs like the NGPV. CLOSING CASE: SOLUTION In search of the paperless office – part 2 1. Zugheri’s change initiative is strategic as his company is saving approximately $150,000 a year on paper and toner AND his now has a built in contingency plan. The success of this was demonstrated when a Hurricane shut down roads causing 80 percent of his employees to not make it into the office, yet through the use of the new technology initiative they were able to still do their jobs from home. 2. The employees resisted the move to a paperless office in the opening case, Part I because it was a complete surprise. Zucheri did not involve them and he failed to explain how the change would benefit them personally and the company. 3. In OD terms, the initial project failed because there was a lack of communication and cooperation to facilitate organizational change. There was no social process or systematic approach. In part 2 he was much more effective because he had a systematic approach that included excellent communication, problem solving and cooperation to facilitate change that was beneficial to the company and employees. 4. Yes, offering to employees that they can work from home on Fridays or when their kids are sick is a great example of negotiating. 5. Entrepreneurs like Zugheri ultimately depend on their team for success. Understanding how people respond to change and conflict are essential if they are to achieve their goals. In private industry people will not stick around for very long if the boss simply barks out orders all day. 6. Personal opinion question. INSTRUCTIONAL TIPS 1. Practical insights into the effects of the change process on individuals and resistance to change can be illustrated by having your students share incidents of workplace or personal change. Examples could include a move, a new job, or a new boss. It is important to have students consider both the rational and the emotional reasons why they resisted the change. 2. A discussion of the personal experiences students have had with haphazardly introduced change can illustrate the importance of creating a change strategy, including unfreezing and refreezing the situation, when introducing changes. Another approach to personalizing the unfreezing/refreezing process is to have students determine how they would use the “unfreeze/change/refreeze” model for achieving personally relevant objectives (e.g., asking their parents for more school money, getting an instructor to reconsider a grade on a paper, or building a meaningful relationship with someone special). 3. To illustrate the power of the 5P checklist, have students determine a change they would like to see happen on campus and then plan how to make it happen using the checklist. 4. Small-group or in-class discussions of personal experiences students have had with conflict, and which method they used to handle it, can illustrate the importance of using problem solving or negotiated compromise to arrive at a long-term solution. You may want to have students give examples of conflicts they are currently dealing with so the class can analyze and help provide advice for resolution. 5. Many students have probably experienced the “avoidance” option for dealing with conflict with a boss, in a personal relationship, or within themselves. Using their experiences with this option, you can discuss the issue of whether avoidance is a successful long-term solution, as well as considering the additional problems that avoidance can cause in the long run. 6. Students can practice negotiating using a political or business negotiation that is currently under discussion in the news. Have students choose sides and prepare their strategies in small groups. They can then conduct the negotiation in their groups, or have two teams negotiate in front of the class, followed by a full-class discussion. Additional Discussion/Essay Questions 1. What kinds of change can occur in today’s organizations, according to the Nadler-Tushman model? Answer: According to the Nadler-Tushman model, several types of change can occur in today's organizations. The model identifies four types of change: 1. Structural Change: This type of change involves modifying the organizational structure, such as reorganizing departments, teams, reporting relationships, or workflow processes. Structural changes are often made in response to shifts in the external environment or to improve internal efficiency and effectiveness. 2. Strategy Change: Strategy change involves altering the organization's goals, objectives, or competitive approach. This could include entering new markets, launching new products, or adopting new business models to respond to changes in the market or industry. 3. Technology Change: Technology change involves implementing new tools, systems, or processes to improve productivity, enhance communication, or enable new ways of working. Technology changes are often driven by advancements in technology or the need to stay competitive in a rapidly evolving digital landscape. 4. People Change: People change focuses on developing employees' skills, capabilities, and behaviors to align with the organization's goals and strategies. This could include training programs, leadership development initiatives, or cultural change efforts to foster a more innovative or customer-centric culture. Overall, the Nadler-Tushman model emphasizes the interconnectedness of these four types of change and suggests that successful organizational change requires a holistic approach that considers the impact of each type of change on the others. By understanding and addressing these different types of change, organizations can effectively navigate and adapt to today's dynamic business environment. 2. Why do employees resist change, and how does that affect productivity in the workplace? Answer: Employees resist change for a variety of reasons, primarily stemming from fear of the unknown, concern over job security, loss of control, and disruption of routines. Change often implies stepping out of one's comfort zone, which can be unsettling. Additionally, employees might resist change if they perceive it as poorly communicated, lacking a clear rationale, or if they feel their input and concerns are not being considered. This resistance can significantly impact productivity in the workplace. When employees resist change, they may become less motivated, leading to decreased engagement and effort in their work. Resistance can also create a tense or negative work environment, affecting team dynamics and collaboration. Productivity may suffer as employees focus more on their concerns about the change rather than on their tasks and goals. Furthermore, resistance to change can lead to delays in implementing new processes or systems, reducing the organization's ability to adapt quickly to market demands or technological advancements. This can ultimately hinder the organization's competitiveness and growth. To mitigate resistance to change and its impact on productivity, organizations should communicate openly and transparently about the reasons for the change, involve employees in the change process, address their concerns, provide support and training as needed, and recognize and reward employees for their efforts and adaptability. 3. Do you have the desire and passion to be a tempered radical? If so, what is your cause? Answer: As a student of management and an individual interested in embracing differences and promoting positive change, I do have a desire and passion to be a tempered radical. A tempered radical is someone who challenges the status quo and advocates for change within an organization or society, but does so in a way that is tempered or moderated to avoid extreme or disruptive actions. My cause revolves around promoting diversity, equity, and inclusion in the workplace and society at large. I believe that embracing differences, whether they be in terms of race, gender, sexual orientation, or cultural background, leads to stronger, more innovative organizations and a more harmonious society. In the workplace, I strive to advocate for policies and practices that create a more inclusive environment, where individuals feel valued and respected for their unique perspectives and contributions. This includes supporting initiatives such as diversity training, mentorship programs for underrepresented groups, and inclusive hiring practices. Outside of work, I am involved in community organizations and initiatives that aim to address systemic inequalities and promote social justice. I believe that by being a tempered radical and working towards these causes, I can help create a more equitable and inclusive world for all. 4. What are the 5Ps? How can they help people at all levels in organizations generate change? Answer: The 5Ps refer to the five key elements that are essential for generating change in organizations. These elements are Purpose, Picture, Plan, Part, and Proof. Each of these elements plays a crucial role in guiding individuals at all levels in organizations to initiate and sustain change. 1. Purpose: Purpose is about having a clear understanding of why change is necessary. It involves defining the reasons behind the change, the benefits it will bring, and the problems it will solve. Purpose provides a compelling reason for people to support and engage in the change process. 2. Picture: Picture involves creating a clear and vivid image of what the future will look like after the change has been implemented. It helps people visualize the desired state and motivates them to work towards achieving it. A clear picture of the future helps to align efforts and resources towards common goals. 3. Plan: Plan refers to developing a detailed strategy for implementing the change. This includes identifying the steps that need to be taken, allocating resources, setting timelines, and assigning responsibilities. A well-thought-out plan provides a roadmap for change and helps to keep the process on track. 4. Part: Part emphasizes the importance of involving people at all levels in the change process. It recognizes that change is more likely to be successful when those affected by it are actively involved in shaping it. By giving people a voice and a role in the change process, organizations can increase buy-in and commitment to change. 5. Proof: Proof involves providing evidence that the change is working and delivering the desired results. It involves measuring progress, collecting feedback, and making adjustments as needed. Proof helps to build confidence in the change process and reinforces the belief that change is possible and beneficial. By understanding and applying the 5Ps, people at all levels in organizations can effectively generate change. The 5Ps provide a framework for thinking about change strategically and for engaging people in the change process. They help to create a shared understanding of the need for change, a clear vision of the future, a plan for action, active involvement of stakeholders, and evidence of progress. 5. What methods can a manager use to deal with competitive conflict, and which is the most effective in the long run? Answer: Managers can use several methods to deal with competitive conflict, which arises when individuals or groups compete for resources, recognition, or power within an organization. Some of the most common methods include: 1. Collaboration: Encouraging collaboration among conflicting parties can help them find mutually beneficial solutions. This involves fostering open communication, building trust, and emphasizing common goals. 2. Compromise: Involves finding a middle ground where both parties make concessions to reach a resolution. While compromise can lead to a quick resolution, it may not always address the underlying issues. 3. Avoidance: Involves ignoring or avoiding the conflict altogether. While this may provide temporary relief, it does not resolve the underlying issues and can lead to resentment or unresolved tension. 4. Accommodation: Involves one party giving in to the demands of the other. While this can help maintain harmony in the short term, it may lead to long-term dissatisfaction and resentment. 5. Competition: Involves using competitive strategies to win the conflict. While this may lead to a quick resolution, it can also escalate the conflict and damage relationships. The most effective method for dealing with competitive conflict in the long run is typically collaboration. By encouraging open communication, building trust, and focusing on common goals, collaboration can help parties find sustainable solutions that address the underlying issues. Collaboration also promotes a positive work environment and fosters a culture of teamwork and cooperation, which can help prevent future conflicts. Discussion Starter: Confrontation Everyone experiences that uncomfortable moment at some point in their lives where they ponder whether or not to confront someone or address a situation. Have students identify a situation from work or at school where there were problems with their behavior or performance. Discussion Questions 1. How did your supervisor, teacher, or administrator handle the problem? Answer: In my experience, I have observed various approaches used by supervisors, teachers, or administrators to handle problems or confrontations. One memorable instance involved a conflict between two team members in a group project. The supervisor addressed the issue by first listening to each team member's perspective individually to understand the root cause of the conflict. After gaining insight into the situation, the supervisor brought both team members together for a mediated discussion. During the discussion, the supervisor encouraged open communication, ensuring that each team member felt heard and understood. The supervisor also facilitated the discussion to help the team members find common ground and work towards a resolution. Overall, the supervisor handled the problem with empathy, patience, and a focus on finding a constructive solution. By addressing the conflict directly and guiding the team members through the resolution process, the supervisor helped restore harmony within the team and enabled them to refocus on their project goals. 2. What was done, or what could have been done, to make the confrontation more effective? Think of a sample work-performance problem. Answer: In a sample work-performance problem, such as an employee consistently missing deadlines, a confrontation could be made more effective by following these steps: 1. Prepare for the Confrontation: Before the confrontation, gather relevant information and examples of the performance issue. Be clear about the specific behavior that needs to change and how it impacts the team or organization. 2. Choose the Right Time and Place: Select a private and neutral location for the confrontation. Choose a time when both parties are calm and not under immediate stress. 3. Use Constructive Communication: During the confrontation, use "I" statements to express concerns without blaming the employee. For example, "I have noticed that deadlines are being missed frequently, and it is affecting our team's productivity." 4. Listen Actively: Allow the employee to share their perspective and reasons for the performance issue. Listen attentively and show empathy towards their situation. 5. Set Clear Expectations: Clearly outline the desired behavior or performance expectations. Be specific about what needs to change and why it is important for the team or organization. 6. Collaborate on Solutions: Involve the employee in finding solutions to the performance issue. Encourage them to suggest ways to improve their performance and meet expectations. 7. Follow Up: Schedule a follow-up meeting to review progress and provide feedback. Recognize improvements and offer support if needed. By following these steps, a confrontation can be made more effective in addressing work-performance problems and fostering a positive and constructive work environment. 3. What kind of impact could it have in an office over the course of a year if it isn’t confronted and corrected? Answer: If a performance issue or conflict is not confronted and corrected in an office over the course of a year, it can have several negative impacts: 1. Decreased Productivity: The unresolved issue can lead to decreased productivity as it may continue to affect the individual's work performance or create tension within the team. 2. Poor Morale: The unresolved conflict can lead to a negative work environment, impacting morale and employee satisfaction. This can result in higher turnover rates and difficulty in attracting top talent. 3. Damaged Relationships: The unresolved conflict can damage relationships among team members, making collaboration and teamwork more challenging. This can hinder the achievement of team goals and overall organizational success. 4. Missed Opportunities for Improvement: Failing to address the issue means missing out on opportunities for improvement and growth. The individual may continue to underperform or behave inappropriately, without receiving the necessary feedback or support to change. 5. Legal and Compliance Risks: Depending on the nature of the issue, such as harassment or discrimination, failing to confront and correct the behavior can expose the organization to legal and compliance risks. 6. Impact on Organizational Culture: The unresolved issue can impact the overall organizational culture, creating a culture of avoidance or conflict avoidance. This can undermine efforts to create a positive and inclusive workplace culture. Overall, failing to confront and correct performance issues or conflicts can have far-reaching consequences for the office, affecting productivity, morale, relationships, legal compliance, and organizational culture. It is important for managers to address these issues promptly and effectively to prevent these negative impacts. BONUS VIDEOS BIZFLIX VIDEO CASES FROM THE TEXTBOOK WEBSITE Discussion Questions and Guide Video Case: The Field of Dreams Video Case Synopsis Ray Kinsella (Kevin Costner) hears a voice while working in his Iowa cornfield that says, “If you build it, he will come.” Ray concludes that “he” is legendary “Shoeless Joe” Jackson (Ray Liotta), a 1919 Chicago White Sox player suspended for rigging the 1919 World Series. With the support of his wife Annie (Amy Madigan), Ray jeopardizes his farm by replacing some corn fields with a modern baseball diamond. “Shoeless Joe” soon arrives, followed by the rest of the suspended players. This charming fantasy film, based on W. P. Kinsella’s novel Shoeless Joe, shows the rewards of pursuing a dream. This scene is part of the “People Will Come” sequence toward the end of the film. By this time in the story, Ray has met Terrence Mann (James Earl Jones). They have traveled together from Boston to Minnesota to find A. W. “Moonlight” Graham (Burt Lancaster) and have returned to the farm. This scene follows Mark’s (Timothy Busfield) arrival to discuss the foreclosure of Ray and Annie’s mortgage. Mark, who is Annie’s brother, cannot see the players on the field. Ray and Annie’s daughter Karin (Gaby Hoffman) has proposed that people will come to Iowa City and buy tickets to watch a baseball game. Mark does not understand her proposal. Video Case Discussion Questions and Suggested Answers 1. Which of the four types of organizational change best describes Ray and Annie’s decision to build a baseball field on their farm? Explain your answer. Answer: Students should be able to immediately rule out anticipatory change because this is not systematic or planned, as well as incremental change because this is a dramatic switch. Some students may argue that this is a reactive change; Ray is responding to an unexpected environmental event—the appearance of a historic baseball team. Other students may argue that this is a strategic change; Ray is attempting to earn more money on his farm by creating a tourist attraction that is potentially highly profitable. 2. In this scene, who are the agents of change, and how does change happen? Provide details from the scene to support your answer. Answer: Ray and Annie’s daughter Karin begins to set a vision for the future by saying, “People will come.” Terrance Mann continues that vision with his steady description of why people will come and relive their childhood love of baseball. Because Karin and Terrance can be seen as Ray’s subordinates who engender change from within in a spontaneous and informal fashion, this change would best be described as grassroots change. 3. Mark is clearly confused and distraught about Ray and Annie’s decision to build a baseball field. Using information from the book, identify the conflict triggers that are influencing Mark’s feelings and behavior. Answer: Officially, Mark represents the bank and its financial interest in Ray’s farm, but as Annie’s brother, he also has a personal interest in the family’s welfare. Although this decision should be left up to Ray and Annie, Mark’s love for his sister causes him to overstep that boundary; he is convinced they’re making a mistake that will hurt their family. Thus, there are overlapping jurisdictions in this situation. Additionally, there is obviously not enough money to build the baseball field and pay the mortgage, so there is competition for scarce resources. Mark is also up against a deadline, so there is time pressure. And finally, despite several characters’ attempts to communicate the family’s vision to Mark, he is unable to see it, so there is a communication breakdown. All of these combine to trigger conflict. Bonus COOPERATIVE LEARNING TOOL Are You Ready, Willing, and Able to Change? In analyzing the difficulty people have changing, it is important to understand that even changes that people choose for themselves can be difficult to make, and even harder to maintain. Anyone who has ever made New Year’s resolutions knows the truth of this. A number of factors can affect a person’s success at making a personally selected change. Issues such as the magnitude of the change, the reward or rewards for succeeding, and the motivational make-up of the person involved can affect success. The following factors help indicate how “ready, willing, and able” you are to make a specific, personally selected change in your life. What sort of change do you want to make? __________________________________
___ Is it one that you have personally selected and made a commitment to, rather than one that you feel “should” be made on the advice of friends and family?
___ Have you considered and dealt with any resistance you may have to the change, and the reasons for the resistance?
___ Have you clearly defined the change, including the new behaviors or characteristics you will exhibit as a result?
___ Do you have a specific deadline or time frame for making the change?
___ Are your change goals and time frames realistic and reasonable, given your operating environment and the magnitude of the change?
___ Have you developed a specific plan for making the change?
___ Have you defined (and are you committed to) the adjustments you have to make in your behavior in order to bring about the change?
___ Does your decision to change have the support of your family and friends?
___ Do you visualize yourself as having successfully made the change when you think about it?
___ Are there clearly defined benefits and rewards to you for making the change?
The more “Yes” responses you have to these questions, the more prepared you are to make a personally selected change. Of course, there are other factors that can also have a strong influence on success, including help from others, timing, and a bit of luck. Chapter 16 Organizational Control and Quality Improvement END OF CHAPTER FEATURES • Terms to Understand – encourage students to make use of the flashcards available on the student website. Also, suggest they visit the Manager’s Toolkit section on the website for tips and suggestions for aspiring managers. • Action Learning Exercise – Measuring Service Quality. Have students complete the survey based on individual experience. After completing the survey have them respond to the questions for discussion that follow. • Ethics Exercise – Do the Right Thing – Who’s Really No. 1? Have students read Matt Blumberg’s philosophy that puts employees at the top of the list. After learning about who Blumberg thinks is number one, have students respond to the ethical questions that follow. Possible responses they are likely to offer are included. What are the ethical implications of the following interpretations? 1. The customer was, is, and always should be number one at successful companies. Dissatisfied customers eventually guarantee the failure of any business. Any exceptions? Answer: Yes, there are exceptions. Some customers will NEVER be satisfied. They show up looking for a “free lunch” they will work hard to find a flaw simply to complain andor get a discount. There are times when savvy managers know to cut their losses, fire their customer or at least show them the door and wishing them all the best. 2. When employees truly believe they are management’s number one priority, they will be loyal and hard working and customer satisfaction and profits will be natural by-products. Answer: There is evidence of this philosophy in action from organizations like Blumberg’s Return Path to large well known companies like Southwest Airlines, where they LUV their employees who in turn LUV their customers. Clearly this model has served them well. 3. In a corporation, shareholders are the owners and management’s overriding job is to give them a good return on their investment. Any exceptions? Answer: Savvy investors know that a company is only as good as the quality of its product or service. They may reap some short term benefits by investing in a company that is only focused on profits. However, as we learned in the Window on the World story about the Haier Group, if they are in it for the long-term they will realize a better return on their investment by owning shares in companies that focus on quality and care about their employees. 4. Your own ethical interpretations? Answer: When framing my own ethical interpretations regarding management's social and ethical responsibilities, I believe that ethical management involves a commitment to transparency, fairness, and accountability. Managers must prioritize the well-being of employees, customers, and the community while making decisions that balance profit with social good. Ethical responsibilities also include respecting environmental sustainability, promoting diversity and inclusion, and upholding integrity in all business practices. Ultimately, ethical management requires a proactive approach to identifying and addressing ethical dilemmas, fostering a culture of ethical behavior, and ensuring that the organization contributes positively to society • Managers-In-Action Video Case Study – Preserve By Recycline chapter 16 Managers-in-action video case study: Preserve® by Recycline – Quality control
Length: 6 minutes and 52 seconds Topics: Quality, Control, Performance Measures, Partners, Manufacturing, Inventory, Growth, Change, Financials, Customer Expectations, Wal-Mart, Sustainability, Research and Discovery. Company Background From the Preserve Products website December 30, 2010.
Preserve® makes stylish, high performance, eco-friendly products for your home. As a company, we strive to combine socially and environmentally responsible business practices with groundbreaking design to create products that people feel good about having in their homes. We believe that choosing eco-friendly products doesn't mean having to sacrifice quality, price, or performance. In 1996, founder and president Eric Hudson was committed to the need to use our earth's resources more efficiently and responsibly. The developing plastic recycling market represented a great new opportunity to reuse our earth's resources (plastics are made from oil and natural gas—making up roughly 9% of the world's petroleum usage). However, at the time that Preserve was formed, there was a lot of concern that recyclables were not necessarily turning into new products. Seeing an opportunity, Eric started Preserve to reuse Earth's precious resources and turn them back into products that people wanted. He worked with dentists, scientists and engineers to create Preserve's first high-quality product from recycled plastics—the Preserve Toothbrush. Since then, Preserve has grown into a dynamic, green lifestyle company offering a range of everyday products for almost every room in your home. Using innovative methods, we turn used materials into razors, colanders, cutting boards, tableware and more! As we grow, our core principles remain the same • Preserve products are made from 100% recycled plastics and 100% post-consumer paper. By using recycled materials, we save energy, preserve natural resources and create an incentive for communities to recycle. • All of our plastic products are recyclable, either through our postage-paid labels and mailers (toothbrushes and razor handles) or at the curb in communities that recycle #5 plastic. • We make our products in the USA, so that we can ship them shorter distances, using less fuel and limiting our environmental footprint. • We don't test on animals. Period. • Preserve products are made to last—and to look good doing it. The Preserve team is made up of 17 people and a host of talented interns who bike, walk, train, and drive (some in bio-diesel fueled cars) to our office outside of Boston intent on bringing Preserve and our mission into more homes every day. Synopsis of Video Quality Control John Lively, Director of Operations for Preserve® and Eric Hudson, Founder and company president share the challenges they face in controlling quality during a period of rapid growth. They discuss various performance measures including meeting financial benchmarks, controlling manufacturing and managing inventory management. Learn how their commitment to measuring performance led to major operational decisions including moving manufacturing to new partners who were more efficient and quality control conscious. Preserve’s focus on quality and meeting customer expectations combined with an ongoing concern for sustainability make this company one for other small business owners to emulate when preparing their total quality management plan. Previewing Questions 1. Describe your impression of quality from a management perspective? Answer: From a management perspective quality involves everyone in the organization. The focus of course is on quality products and services. However, to achieve success an organization must have a systematic approach to defining, measuring and celebrating quality. This should include everyone from the front line workers to salespeople to the accounting staff. Every employee is a representative of the company in some fashion; therefore, everyone has a role to play in TQM. 2. What does a product focused company seek to control with their total quality management initiatives? Answer: Product based companies are focused on making sure the product is meeting predetermined standards. As part of a TQM initiative, they are focused on continuously seeking ways to improve the quality of their products with faster cycle times, greater flexibility and responsiveness to customers with lowers costs and less waste. 3. If there are inadequate controls in place what are some of the possible symptoms that will become evident to managers over a period of time? Answer: Decline in revenues or profits, increased customer complaints, increased employee complaints, absenteeism and turnover, cash shortages, idle workers, excessive costs, and evidence of waste and inefficiency. Postviewing Questions 4. What are the major control issues facing the Preserve® brand today as they expand their product line? Answer: They have multiple areas where control is an issue as they expand. Infrastructure and systems need to be in place to be sure they have sufficient funding, personnel and resources to fulfill their strategic plan. They also need to formalize quality and process controls to lower costs and reduce waste. 5. Which of the three types of control discussed at the beginning of this chapter are evident with Preserve®? Answer: Although I think they would like to be in a feed foward situation, they are more aligned right now with feedback control. They are learning as they grow and trying to implement new programs, partners and systems to learn from their growing pains. 6. Although the executives at Preserve® are doing many things right in controlling their product development, there is room for improvement. How would you suggest they enhance their total quality management process to be prepared for future growth? Answer: They need to begin, in earnest to build teamwork and a culture of empowerment. Eric Hudson, the founder and president appears to be a little bit of a control freak. He is obviously stressed, imagine when they double their sales and have hundreds of employees. He needs to learn now how to trust his employees and his partners. Implementing the TQM principles and making continuous improvement a way of life will help prepare them for their future growth. 7. How has their commitment to quality and control given them a competitive edge in forming partnerships with customers and manufacturers? Answer: Manufacturing firms actually seek them out; they want to partner with them because of their commitment to quality and sustainability. Their commitment to ongoing research, discovery and quality improvement are some of the ways they differentiate themselves from their competition. CLOSING CASE: SOLUTION the cure 1. Feedforward is all about monitoring, anticipating and preventing problems. Geisinger has implemented a program with the CABG surgical procedure that includes a 40 point checklist to be sure they achieve the best possible patient outcomes. The pros are consistency and the benefit of following best practices. The cons include the perception of “cook book” medicine. 2. They use objectives to measure patient outcomes and total cost. They use standards and benchmarks including the 40 point checklist to measure performance and they use incentives including bonuses to reward doctors for following the protocol (an evaluation-reward system). If they deviate or omit a step on the checklist they are not punished, they simply need to chart the reason for skipping the item. 3. Steele’s surgery gave him a great opportunity to experience the protocol first hand. He gained insight and learned firsthand the positive impact of the system in place. He also gained a much greater appreciation for the complexity of the procedure, how essential the 40 point checklist is, and how many people directly impact the potential outcome. Success or failure is in the hands of a big team. 4. This case should have in big bold letters the first principle of TQM…..Do it right the first time. They are banking on their staff of health providers doing it right. The fact that this new program is based on pay-for-performance or evidenced based medicine forces them to be customer (patient) centered. In addition, the TQM principle to build teamwork and empowerment is one of the keys to success. Without trust and teamwork the 40 step checklist would be collecting dust. 5. Deming’s New Philosophy is at the heart of this case about heart surgery. Geisinger is trying to change an industry that currently rewards providers for doing more procedures and keeping patients longer. Their approach is to put financial incentives in place that reward for patient outcomes or evidence-based medicine. They are accomplishing this by training everyone, promoting teamwork, and fostering an environment where, “The transformation is everyone’s job”. INSTRUCTIONAL TIPS 1. You can use a familiar process, such as throwing a party, registering for school, taking a trip, or attending a concert, to illustrate the difference between feedforward and feedback control. A familiar process can also be used to demonstrate the importance of feedforward control in reducing wasted time and frustration and the importance of feedback control in learning from the experience for the next time. Also, see the first cooperative learning tool in this chapter for an exercise in using controls. 2. The symptoms of inadequate control can be personalized by having your students observe an ongoing operation (e.g., their place of employment, a dormitory cafeteria, or a restaurant) and report their findings and recommendations for improvement to the class. 3. A class discussion of the handling of a weather catastrophe such as an earth quake or other crises, as reported in the mass media, can enhance understanding of crisis management. 4. Some of your students may have worked at least part-time in organizations that have some version of TQM in place. Ask for their perspective on its value. 5. As customers, have your students review your college or university from the perspective of TQM, particularly the “close to the customer” goal. How well do they think their school does at using and promoting TQM goals? You may want to do some research to discover whether there have been any TQM-related efforts on your campus and, if so, share them with the class. 6. Have your students act as “secret shoppers,” choosing various restaurants and stores near campus and buying something while paying special attention to the service provided. Have them report on what was handled well and what wasn’t. Ask whether the experience changed the way they will approach shopping or eating out in the future. 7. Have students look out for and bring to class customer surveys and comment cards from various businesses they visit (e.g., restaurants and hotels). Talk about how the information gathered this way can help a company be more attentive to the needs of its customers. Evaluate how well the samples they have gathered will work in meeting customer-oriented goals. 8. Malcolm Baldrige National Quality Award winners are required, as one of the responsibilities of accepting the award, to educate other organizations about quality. You may have students write to the various winners to obtain information on their total quality efforts. Many of them have extensive educational materials on TQM available to the public. Additional Discussion/Essay Questions 1. Why should today’s managers emphasize feedforward control? Answer: Feedforward control is a proactive management approach that focuses on preventing problems before they occur, rather than reacting to them after they have happened. Today's managers should emphasize feedforward control for several reasons: 1. Prevention of Problems: Feedforward control helps in identifying potential issues and taking corrective actions before they escalate, thereby preventing costly mistakes and failures. 2. Enhanced Efficiency: By addressing potential problems beforehand, feedforward control helps in optimizing processes and resources, leading to improved efficiency and productivity. 3. Promotion of Innovation: Emphasizing feedforward control encourages a culture of continuous improvement and innovation, as employees are encouraged to suggest and implement new ideas to prevent problems. 4. Customer Satisfaction: Proactively addressing issues through feedforward control ensures that customer needs and expectations are met, leading to higher levels of satisfaction and loyalty. 5. Risk Management: By identifying and mitigating risks early on, feedforward control helps in reducing the likelihood of negative impacts on the organization's objectives. 6. Cost Savings: Preventing problems through feedforward control is often more cost-effective than fixing them after they occur, as it reduces the need for costly repairs or rework. Overall, emphasizing feedforward control enables organizations to operate more effectively, minimize risks, and stay competitive in today's dynamic business environment. 2. What sorts of organizational crises are most likely during the next five years, and how should managers prepare? Answer: Predicting specific organizational crises can be challenging, as they can be influenced by various factors such as industry trends, economic conditions, technological advancements, and regulatory changes. However, some potential crises that organizations may face in the next five years could include: 1. Cybersecurity Breaches: With increasing reliance on digital technologies, organizations are at risk of cyber attacks that can lead to data breaches, financial losses, and reputational damage. 2. Supply Chain Disruptions: Globalization has made supply chains more complex and vulnerable to disruptions caused by natural disasters, geopolitical issues, or economic uncertainties. 3. Reputational Damage: Social media and the 24/7 news cycle make it easier for negative information to spread quickly, leading to reputational crises that can impact customer trust and loyalty. 4. Regulatory Changes: Changes in regulations and compliance requirements can create challenges for organizations, especially those operating in highly regulated industries. 5. Natural Disasters: Climate change is increasing the frequency and severity of natural disasters, which can disrupt operations and cause significant damage to infrastructure. To prepare for these potential crises, managers should: 1. Risk Assessment: Conduct regular risk assessments to identify potential crises and their likelihood and impact on the organization. 2. Crisis Management Plan: Develop a comprehensive crisis management plan that outlines roles and responsibilities, communication strategies, and steps to mitigate the impact of a crisis. 3. Communication Strategies: Establish effective communication channels internally and externally to quickly address and manage crises. 4. Training and Drills: Conduct regular training sessions and crisis drills to ensure that employees are prepared to respond effectively in a crisis situation. 5. Collaboration: Build relationships with external stakeholders such as government agencies, industry associations, and other organizations to facilitate a coordinated response to crises. By proactively preparing for potential crises, organizations can minimize their impact and ensure business continuity in the face of adversity. 3. A manager at Home Depot once said, “We don’t sell tools; we sell solutions.” How does that fit with the concept of quality? Answer: The statement "We don't sell tools; we sell solutions" from a manager at Home Depot aligns with the concept of quality in several ways: 1. Customer Focus: By emphasizing the sale of solutions rather than just products, Home Depot is placing a strong emphasis on understanding and meeting customer needs. Quality, in this context, means providing products that effectively solve customers' problems or meet their specific requirements. 2. Value Creation: Selling solutions instead of just tools implies that Home Depot is focused on creating value for customers. Quality, in this context, is about providing products and services that offer tangible benefits and help customers achieve their goals. 3. Problem Solving: The statement suggests that Home Depot is not just in the business of selling tools, but also in the business of solving problems. Quality, in this context, involves offering reliable and effective solutions that customers can trust. 4. Differentiation: By positioning themselves as a provider of solutions, Home Depot is differentiating themselves from competitors who may focus solely on selling products. Quality, in this context, means offering unique and valuable solutions that set them apart in the market. Overall, the statement highlights the importance of a customer-centric approach and the role of quality in providing innovative, valuable, and effective solutions to meet customer needs. 4. What differences do you think you would experience as an employee in a company that had successfully implemented TQM, as compared to one that hadn’t? Which firm would you prefer? Why? Answer: Experiencing a company that has successfully implemented Total Quality Management (TQM) compared to one that hasn't can lead to several differences in employee experience: 1. Culture of Continuous Improvement: In a TQM-oriented company, there is a strong emphasis on continuous improvement and innovation. Employees are encouraged to identify and suggest improvements in processes, products, and services. In contrast, a company without TQM may have a more stagnant work environment with less focus on improvement. 2. Employee Involvement and Empowerment: TQM emphasizes the importance of employee involvement and empowerment. Employees are given the authority to make decisions and take ownership of their work. This can lead to higher job satisfaction and motivation compared to a company where employees have less autonomy and involvement in decision-making. 3. Customer Focus: TQM places a strong emphasis on understanding and meeting customer needs. Employees in a TQM-oriented company are more likely to be customer-focused and oriented towards delivering high-quality products and services. In contrast, employees in a company without TQM may have less awareness of customer needs and priorities. 4. Quality Mindset: In a TQM-oriented company, there is a pervasive quality mindset where every employee is committed to delivering high-quality work. This can lead to higher levels of quality and customer satisfaction. In contrast, a company without TQM may have a more lax attitude towards quality, leading to more errors and customer complaints. 5. Communication and Collaboration: TQM promotes open communication and collaboration among employees and departments. This can lead to better coordination and teamwork, resulting in improved efficiency and effectiveness. In contrast, a company without TQM may have more siloed departments and less effective communication channels. In terms of preference, I would choose to work for a company that has successfully implemented TQM. This is because such a company is likely to offer a more stimulating and empowering work environment, where I can contribute meaningfully, see the impact of my work, and be part of a culture that values continuous improvement and quality. 5. What do you think is the most important piece that needs to be in place in an organization for TQM to succeed? Why? Answer: The most important piece that needs to be in place in an organization for Total Quality Management (TQM) to succeed is a strong commitment from top management. Top management support and involvement are critical for the successful implementation of TQM for several reasons: 1. Setting the Tone: Top management sets the tone for the organization's commitment to quality. When top management is fully committed to TQM, it sends a clear message to the rest of the organization that quality is a top priority. 2. Resource Allocation: TQM requires resources such as time, money, and personnel. Top management plays a crucial role in allocating these resources effectively to support TQM initiatives. 3. Removing Barriers: TQM often requires changes in organizational structure, processes, and culture. Top management's support is essential for removing barriers and resistance to change within the organization. 4. Providing Guidance: Top management provides guidance and direction for TQM initiatives, ensuring that they are aligned with the organization's strategic objectives. 5. Role Modeling: Top management's commitment to quality serves as a role model for the rest of the organization. When employees see top management actively participating in TQM initiatives, they are more likely to be motivated to do the same. Overall, top management's commitment to TQM is essential for creating a culture of quality within the organization and ensuring the successful implementation of TQM initiatives. Without this commitment, TQM is likely to be seen as just another management fad and may not yield the desired results. 6. Using your experience with class teams as an example, what are the advantages and disadvantages of the team approach? What can be done to help deal with the disadvantages? Answer: Using my experience with class teams as an example, the team approach has several advantages and disadvantages: Advantages: 1. Diverse Perspectives: Teams bring together individuals with different backgrounds, experiences, and perspectives, which can lead to more creative and innovative solutions to problems. 2. Increased Efficiency: Teams can divide tasks among members, leading to increased efficiency and faster completion of projects. 3. Skill Development: Working in teams allows members to develop their communication, collaboration, and leadership skills. 4. Shared Responsibility: In a team, members share responsibility for the success or failure of a project, leading to a sense of ownership and accountability. Disadvantages: 1. Conflict: Differences in opinions, work styles, or personalities can lead to conflict within the team. 2. Coordination Challenges: Coordinating schedules, meetings, and tasks can be challenging, especially in larger teams. 3. Free-Riding: Some team members may not contribute their fair share of work, relying on others to do the majority of the work. 4. Groupthink: In an effort to maintain harmony within the team, members may suppress dissenting opinions, leading to poor decision-making. To deal with these disadvantages, several strategies can be employed: 1. Clear Goals and Roles: Establish clear goals for the team and define each member's roles and responsibilities to avoid confusion and minimize conflict. 2. Effective Communication: Encourage open and honest communication within the team to address conflicts and ensure that all members are on the same page. 3. Regular Feedback: Provide regular feedback to team members to recognize contributions and address any issues or concerns. 4. Conflict Resolution: Develop strategies for resolving conflicts within the team, such as mediation or team-building exercises. 5. Accountability: Hold team members accountable for their work by setting deadlines and monitoring progress. Overall, while the team approach has its challenges, with proper management and communication, these challenges can be overcome, and teams can be highly effective in achieving their goals. 7. If you owned a small business, would you implement TQM? Why or why not? What types of factors in your business would influence your decision? Answer: If I owned a small business, I would consider implementing Total Quality Management (TQM) based on several factors: 1. Customer Satisfaction: TQM emphasizes meeting and exceeding customer expectations, which is crucial for the success of any business. Implementing TQM can help ensure that my business delivers high-quality products or services that satisfy customer needs. 2. Competitive Advantage: TQM can provide a competitive advantage by improving efficiency, reducing waste, and enhancing product or service quality. This can help my business stand out in the market and attract more customers. 3. Employee Engagement: TQM involves empowering employees, encouraging teamwork, and fostering a culture of continuous improvement. This can lead to higher employee morale, motivation, and productivity, which are essential for the success of a small business. 4. Cost Savings: TQM focuses on reducing defects, errors, and waste, which can result in cost savings for my business. By improving processes and efficiency, TQM can help my business operate more effectively and reduce operating costs. 5. Reputation: Implementing TQM can enhance my business's reputation for quality and reliability, which can lead to increased customer loyalty and positive word-of-mouth referrals. Factors that would influence my decision to implement TQM in my small business include: 1. Resource Constraints: Implementing TQM requires time, effort, and resources. I would need to assess whether my business has the necessary resources to implement TQM effectively. 2. Organizational Culture: TQM requires a commitment to quality and continuous improvement from all levels of the organization. I would need to assess whether my business's culture is conducive to implementing TQM. 3. Market Dynamics: I would consider the competitive landscape and market demands to determine whether implementing TQM would provide a competitive advantage for my business. 4. Size and Scope of Operations: The size and scope of my business operations would also influence my decision. Implementing TQM may be more feasible and effective for smaller, more focused operations compared to larger, more complex ones. Overall, while implementing TQM in a small business can offer many benefits, it is essential to carefully assess the factors specific to my business to determine whether TQM is the right approach. Discussion Starter:
Customer Satisfaction Make a list of several local companies students are familiar with. You may choose to do a mix of big box stores and chains like Best Buy and Outback Steakhouse but it will be interesting to also include a couple of locally owned stores, perhaps the area bike or ice cream shop. Divide students into groups or facilitate as a class. For each company, respond to the questions below. For Discussion: 1. On a scale of 1 to 5 how likely are you to recommend ____ store to friends and family? Explain. Answer: I would rate my likelihood to recommend the store a 4 out of 5. The store offers a wide variety of products, and I generally have a positive shopping experience. The staff is friendly and helpful, and I appreciate the convenience of the store's location. However, there have been a few instances where the store was out of stock on items I needed, which was a bit frustrating. Overall, I would recommend the store to friends and family based on my positive experiences, but I would also mention the occasional issues with stock availability. 2. How could their product and/or service quality be improved? Answer: To improve their product and service quality, the store could consider the following strategies: 1. Enhanced Product Selection: The store could expand its product selection to include a wider variety of items, ensuring that customers can find everything they need in one place. 2. Improved Stock Management: Implementing better stock management practices could help reduce instances of items being out of stock, ensuring that customers can always find what they're looking for. 3. Staff Training: Providing ongoing training to staff on customer service and product knowledge can enhance the overall shopping experience for customers. 4. Customer Feedback: Encouraging and actively seeking customer feedback can provide valuable insights into areas where the store can improve its product and service offerings. 5. Quality Control: Implementing strict quality control measures can help ensure that all products meet the store's quality standards before being sold to customers. By implementing these strategies, the store can enhance its product and service quality, leading to higher levels of customer satisfaction and loyalty. 3. Do you see any evidence of TQM? Explain Answer: Yes, there is evidence of Total Quality Management (TQM) in the store. One example is the store's focus on customer satisfaction, which is a core principle of TQM. The store regularly seeks feedback from customers through surveys or comment cards to understand their needs and preferences better. Additionally, the store emphasizes continuous improvement, another key aspect of TQM, by regularly reviewing its processes and procedures to identify areas for enhancement. The store also places a strong emphasis on employee training and empowerment, which are key components of TQM, as empowered and well-trained employees are better able to meet customer needs and contribute to overall quality improvement. Overall, these practices suggest that the store is implementing TQM principles to enhance customer satisfaction and improve overall quality. BONUS VIDEOS BIZFLIX VIDEO CASES FROM THE TEXTBOOK WEBSITE Discussion Questions and Guide Video Case: Baby Mama Video Case Synopsis Meet Kate Holbrook (Tina Fey), single, late thirties, successful in her career, but childless. She loves children and wants a child but does not want to take chances with a pregnancy at her age. Kate enlists the help of Angie Ostrowiski (Amy Poehler) from South Philadelphia to act as her surrogate mother. Former attorney, now Super Fruity Fruit Smoothies owner Rob Ackerman (Greg Kinnear) enters the scene and begins dating Kate. Angie becomes pregnant but it is not clear whether the child is Kate’s or Angie’s. The complex, intertwined relationships and social interactions create an enjoyable comedy experience. These scenes start with a shot of Kate and Rob seated at a table in a vegan restaurant. The Vegan Waiter (Jon Glaser) approaches the table and introduces himself. Soon, Kate and Ray establish that neither of them are vegans, so they move to a different fast-food restaurant. Video Case Discussion Questions and Suggested Answers 1. What type or types of control did you witness in this scene? Give examples from the video clip. Answer: Naturally, Rob wants the date to be a success, so he is carefully monitoring Kate’s enjoyment of the meal at the vegan restaurant. Likewise, the waiter is monitoring the couple’s experience at his restaurant. These are both examples of concurrent control. Later, the couple is seen ordering sandwiches at a fast-food restaurant. Kate gives very specific instructions about her order, which is a form of feedforward control. 2. Typically on a first date, the partner who planned and organized the date (in this case, Rob) wants to impress and please the other partner, but Rob sees that that’s not happening in the early part of this scene. How does Rob manage this crisis? Answer: Because Rob was monitoring Kate’s reactions and responses, he was able to quickly observe the early warning signals that she wasn’t enjoying the meal. He openly acknowledged the problem with her, and asked for her participation in formulating a contingency plan. Together, they decided to go to a different restaurant. 3. The chapter lists some of the unique quality challenges that service providers face. Discuss these challenges using specific examples from the two restaurants shown in this video clip. Answer: At both restaurants, Kate and Rob are using the services on the spot, at the place and time when they choose. Although they did not go into the kitchen at the first restaurant, it could be said that Kate, in a sense, did participate in the production process at the second fast-food stand by watching through the window and specifying her expectations about how the food should be prepared. As is typical of restaurants, the service is labor intensive and required plenty of customer service. In general, it is difficult to measure an intangible service, and based on this video clip, we cannot accurately gauge the level of service at either restaurant. Bonus DECISION CASE CLOSE CALL It was a typical news day at station WXYZ. At five minutes to six, the local news team was making its final preparations before air time. Ben and Tracy, the local anchors, were in place, reviewing their copy. Suddenly, something happened that made them realize that there is really no such thing as a typical news day. A shot rang out in the studio. Two hooded figures walked out of a film storage closet. One had a handgun and the other what looked like an automatic weapon. The one with the automatic weapon kept scanning the room as the one with the handgun walked up to Ben and Tracy and aimed the gun at them. “I have a message for the people of America, and I want it aired tonight.” Ben was terrified, but he noticed out of the corner of his eye that the front cameraman had casually turned his camera toward them and had the light on. That meant that the control room could see and hear the whole thing. Tracy looked remarkably cool, considering the situation. “Why don’t you tell us what your message is, and we’ll see what we can do to help you,” she said. While Tracy continued to talk to the gunman, the TelePrompTer began letting Ben and Tracy know what was being done outside. Tracy took one look and immediately turned away, toward the gunman, to keep his attention focused on her and away from the screen. From an on-air instinct developed through years of working together, Ben knew she would handle maintaining the gunman’s composure while he was in charge of whatever needed to be done with the information from the control booth. From the screen, Ben learned that the station had contacted the police, who recommended setting up a closed-circuit news presentation that would be perceived as real to the two men inside the station. From their words, it was clear that they had no immediate access to anyone outside the studio, so they would not be able to check whether something actually went on the air. Ben turned toward Tracy and the gunman. With forced concern, he stated, “It’s almost time for the news to start. The last commercial is running.” “Introduce me, then give me your mike,” the gunman said to Tracy, moving in behind her. By this time the TelePrompTer had gone blank, but Ben and Tracy knew what needed to be done. With a quick check to Ben, to make sure her behavior matched what was requested from the control booth, Tracy moved over and said to the camera, “This man is from the national army of liberation and wants his message aired tonight, so before the regular news, we will have a few words from him.” The message was ranting and incoherent, with comments about fascism and a new order. It was clear that the “national army of liberation” was actually two not-quite-sane brothers who had been fired from their jobs. At the end of the message, the gunman said, “OK, you can go on with the rest of the news now. We’re leaving.” They walked toward the door, guns in hand. Suddenly, the lights went out, and Ben screamed, “Everybody drop!” Police with blinding flashlights raced from every entrance and overpowered the gunmen. They were forcibly taken into custody. The panic that had been held at bay washed over the two anchor people and the crew. Someone could have been hurt so easily. After a few minutes to recover, Ben and Tracy indicated that they were ready to go on the air with an abbreviated version of the news. At 6:15, the theme sounded in the studio again, and Tracy began the new opening story. “Today at WXYZ at 5:55, a typical news day turned into a day when we made our own news. Two gunmen rushed into the studio five minutes before air time … .” At the conclusion of the broadcast, the station manager and the news director called the staff into the conference room for an emergency meeting. “I want to compliment everyone on the crew for the masterful job with this dangerous situation,” the station manager said. “From Bill on camera one who cued us to the problem, to Ben and Tracy’s coordinated control efforts, and everyone’s personal effort to maintain composure, you all handled yourselves well. The question now is, how did it happen, and what can be done to prevent its happening again?” “We’re in such a visible and volatile business,” the news director commented. “I’m not convinced that we can prevent similar occurrences in the future, no matter how careful we are.” “There has to be some way to change the way we do things, to prepare so that this sort of thing is less likely and that we are not caught by surprise if anything like this happens again,” the station manager said. “We were lucky this time; we may not be the next.” Discussion Questions 4. What elements in this crisis helped station WXYZ end up with a positive outcome? Answer: Several elements contributed to station WXYZ ending up with a positive outcome in the crisis: 1. Effective Communication: The station's management communicated transparently with employees, listeners, and advertisers throughout the crisis. This helped maintain trust and credibility. 2. Quick Response: The station responded swiftly to the crisis, taking immediate action to address the issue and prevent further damage. 3. Adaptability: The station demonstrated adaptability by quickly implementing changes to its programming and operations to address the crisis. 4. Employee Morale: The station's focus on employee morale and well-being helped maintain a positive internal atmosphere, which likely contributed to better performance during the crisis. 5. Community Engagement: Station WXYZ engaged with its community effectively, seeking feedback and support, which helped build loyalty and trust among listeners. 6. Learning from Mistakes: The station used the crisis as an opportunity to learn from its mistakes and improve its operations and policies. Overall, station WXYZ's handling of the crisis demonstrates the importance of effective communication, quick response, adaptability, employee morale, community engagement, and learning from mistakes in managing and overcoming a crisis. 5. If you were the station manager of WXYZ, what would you do in the aftermath of this situation to develop a crisis management program? Answer: As the station manager of WXYZ, I would take several steps to develop a comprehensive crisis management program in the aftermath of the situation: 1. Conduct a Post-Crisis Review: Conduct a thorough review of the crisis, analyzing what went wrong, what worked well, and areas for improvement. Use this information to inform the development of the crisis management program. 2. Identify Potential Crisis Scenarios: Work with key stakeholders to identify potential crisis scenarios that the station could face. This could include issues related to personnel, programming, legal matters, or external factors. 3. Develop Crisis Response Plans: Develop detailed response plans for each identified crisis scenario. These plans should outline the steps to be taken, roles and responsibilities of staff, communication protocols, and resources needed to manage the crisis effectively. 4. Training and Simulation Exercises: Conduct regular training sessions and simulation exercises to ensure that staff are prepared to respond effectively in a crisis. This will help familiarize them with their roles and responsibilities and identify any gaps in the response plans. 5. Establish Communication Protocols: Develop clear communication protocols for internal and external communication during a crisis. Ensure that there are designated spokespersons who are trained in crisis communication. 6. Build Relationships with Stakeholders: Build relationships with key stakeholders, including employees, listeners, advertisers, and the media. This will help facilitate effective communication and coordination during a crisis. 7. Continuous Improvement: Continuously review and update the crisis management program to incorporate lessons learned from past crises and changes in the operating environment. By implementing these steps, WXYZ can develop a robust crisis management program that will help the station effectively manage and mitigate the impact of future crises. bonus DECISION CASE: ANSWERS TO DISCUSSION QUESTIONS CLOSE CALL 1. a. The cool head of the camera man who sent the image of the problem to the control room b. The ability of the anchor team to anticipate each other’s thoughts, thanks to years of experience together c. The technical know-how of the news team, and the lack of technical knowledge on the part of the terrorists d. The coordinated efforts of everyone on the news team, working as a unit to handle the situation 2. This is an opinion question. Students can use the elements listed in the text (see Figure 16.3) to help develop the answer. Chances are that a television station already has some contingency plans in place, such as what to do if they lose power. Other situations, such as the one described in the case, are less common but even more critical. The aftermath of this crisis is a perfect time to address these issues. In terms of terrorism, it may even be appropriate to meet with other stations and the police force, to develop a system that will be consistent citywide. WXYZ was lucky because the staff snapped into a pseudo-SWAT team, working together to handle the situation. This is perhaps more natural in a television station than in other industries, because the people are used to working together in “real time” on the air. However, a well-designed plan to handle the situation, complete with possible permutations and preset assignments will increase their probability of success next time. Finally, practice sessions will help alleviate the sense of panic and terror. One final issue is that people will be particularly jumpy after this event. Taking steps to develop a crisis management system will help dissipate their nervousness by adding to their sense of personal control over an untenable situation. bonus COOPERATIVE LEARNING TOOL Taking Control: Instructor notes This exercise is designed to be a fun way for students to practice feedforward, concurrent, and feedback control. Here are some issues your students may want to consider with the scenario on the next page. • RSVPs for the children • What will be done if it rains • How the food and decorations will get to the park • Park facilities, such as restrooms, tables, and chairs • How emergencies or accidents will be handled • Evaluating and selecting the entertainment • Making sure all the equipment is there for the games • Adequate adult supervision • What rules will be set up, such as defining areas that are out of bounds • What instructions the parents need before the party • How the presents will be handled • Party length and timing for each part of the party • What will be done if a parent doesn’t pick up a child on time • What will be done if a child gets sick • How will conflicts be handled • Safety issues • Protecting the children from strangers • How party favors and prizes will be awarded • How their boss will determine the success of the party • What sources the boss will have to evaluate the individual’s success at planning and organizing the party bonus COOPERATIVE LEARNING TOOL Taking Control Control is important in planning and conducting any event or activity. Using the following scenario, develop a plan for handling the event, building in feedforward control. Then design a concurrent control plan to monitor and adjust the event during its presentation. Finally, develop a feedback plan to take corrective action before the next event. It’s Friday afternoon and your boss calls you into her office. “As you know, the vice president of marketing left for the hospital with a bleeding ulcer this morning, and consequently the president has asked me to represent the company at our primary customer conference of the year. I was planning to take next week off, so my work schedule is under control. However, I have another project for you.” “You’ve been asking me for a challenging assignment, and because of this unexpected project, I have one for you. I have spoken to the president about this, and he agrees that you can be freed from your regular duties for this.” “Maybe this is the big one,” you think to yourself. “The chance to prove my skills and show that I am ready for the next step.” You continue to listen as your boss explains. “I would like you to coordinate my six-year-old’s birthday party next Saturday. We have invited 17 other six-year-olds from her class. The party will take place at a nearby park and involve entertainment, food, and games, which you will also select and coordinate. I was planning to do all this during my week off, so other than sending the invitations, I have nothing prepared. “In addition to the planning, I need you to be in charge during the party. My daughter’s nanny will be there, but she has no background in this, and I want to make sure everything goes well. The president’s son will be there, and many of these children have parents who are very important to our company—customers, board members, and so on—and we want to make a positive impression on them. “Some parents may choose to stay for the party, and others may leave. Remember, we want to make it a positive occasion for the children. You will need to make sure that everything is well under control at all times.” Your first exercise in control consists of sitting calmly and listening to this totally unexpected (and somewhat insulting) assignment! Now for your next control exercise: creating a plan for the party, and building in feedforward, concurrent, and feedback control. Bonus COOPERATIVE LEARNING TOOL A Process Mapping Experience: Instructor Notes Process mapping is a continuous improvement method used to review standard procedures and processes to reveal bottlenecks, unnecessary steps, or other elements that may be adding to cycle time. A process map can be a flow chart, a decision tree, a chain of Post-it notes, or some other construction. The important thing is that it clearly spell out all the steps in a process, along with who is responsible for each step, and how the people and the steps interact with each other. The goal of this exercise is not to teach students process mapping. This is a complex technique that is beyond the scope of a class exercise. Instead, students should get a sense of the challenges faced by employees as they work to streamline procedures and reduce cycle time. To enable the groups to focus on the process rather than the technique, I recommend a simple flow chart of the process, annotated with the answers to the questions listed on the student task sheet for this exercise. Divide the students into groups and assign a different process to each group. Use the list below, your own ideas, or suggestions from the class. Students should map the past experience of one group member, rather than attempting to create a scenario from scratch.
SUGGESTED PROCESSES: Registering for classes
Parking on campus
Writing a research paper
Doing an Internet search
Applying for a job
Preparing a meal
Buying a car
Paying your bills
Throwing a party
For each group, have them develop a process map that answers the questions listed on the next page. Once the process map is completed, have each group work to discover ways to eliminate unnecessary steps, shorten cycle times, and reduce waste in the process they outlined. Some questions they may ask themselves are included on the next page. Finally, have each group present the most significant improvement they were able to suggest in the process they were mapping. Then open up a class discussion on the challenges of process mapping—and what the students liked and didn’t like about it. A PROCESS MAPPING EXPERIENCE Process mapping is a continuous improvement method used to review standard procedures and processes to reveal bottlenecks, unnecessary steps, or other elements that may be adding to cycle time. A process map clearly spells out all the steps in a process, along with who is responsible for each step, and how the people and the steps interact with each other. You may use a flow chart approach, a decision tree, or simply a chain of Post-it notes. Once your group has selected its process to map, select the personal experience of one of your group members to map. Because mapping even a simple process can be very involved, you may want to choose someone who had an easy time with the task, completed it fairly recently, and so remembers much of what happened. Be sure to answer the following questions: 1. What steps were followed in chronological order to complete the task? (Include both the steps that got you closer to the goal and the steps that either didn’t contribute or actually slowed your progress.) Answer: Steps Followed: • Decide on a theme for the party. • Create a guest list. • Choose a date and time. • Select a venue or decide if it will be at home. • Send out invitations. • Plan the menu and gather any necessary supplies. • Decorate the venue. • Set up any activities or games. • Host the party. • Clean up after the party. 2. How long did each step take? Answer: Duration of Each Step: • Theme selection: 1 hour • Guest list: 30 minutes • Date and time: 15 minutes • Venue selection: 1 hour (if at home, no additional time) • Invitation sending: 30 minutes • Menu planning: 1 hour • Decorations: 1-2 hours • Activities/games: 1-2 hours • Party hosting: 3-4 hours • Clean up: 1-2 hours 3. At what point were decisions made, and what criteria were used? Answer: Decision Points and Criteria: • Theme selection: Based on the friend's interests and preferences. • Venue selection: Based on availability, cost, and suitability for the party size and theme. • Menu planning: Based on dietary restrictions, preferences of guests, and ease of preparation. • Activities/games: Based on the theme and interests of the guests. 4. What steps required outside help? Did you have the authority needed to get the help? Answer: Outside Help: • Venue selection may require contacting rental spaces or checking availability of public venues. • Decorations and supplies may need to be purchased from stores or online. • Catering or food preparation help may be needed. 5. What outside resources were needed to complete the task? (Supplies, money, etc.) Answer: Outside Resources: • Supplies for decorations and activities/games. • Money for venue rental, catering, and supplies. • Contacts for rental spaces, catering services, and stores for supplies. After completing the process map, review it, considering the following questions: 1. Were any steps in the process unnecessary or redundant? Answer: Yes, there were some steps that seemed redundant. For example, there were two approval stages that essentially served the same purpose, causing delays and unnecessary back-and-forth. 2. Were the tasks completed in the right order for the best possible use of time and resources? Answer: Not entirely. Some tasks could have been reorganized to reduce waiting time between stages. For example, while waiting for approval, other preparatory tasks could have been completed to save time. 3. Was outside help forthcoming when needed? If not, what would need to be changed to get the help? Answer: Outside help was not readily available. To improve this, a clear escalation process could be established to ensure that when help is needed, it can be quickly accessed. 4. Were resources wasted in the process? If so, why, and what changes in the process would result in the better use of resources? Answer: Yes, there were instances where resources were wasted. For example, there was duplication of effort due to miscommunication. Implementing a centralized communication system could help reduce this waste. 5. Is there anything else the group can think of to improve this process? Be prepared to share your most significant improvement(s) with the class. Answer: One significant improvement could be the introduction of automation for certain repetitive tasks. This would not only save time but also reduce the likelihood of errors. Additionally, regular reviews of the process could help identify and address inefficiencies as they arise. Solution Manual for Management Robert Kreitner, Charlene Cassidy 9781111221362

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