This Document Contains Chapters 9 to 12 Chapter 9 Organizational Agility DISCUSSION QUESTIONS 1. Discuss evidence you have seen of the imperatives for change, flexibility, and responsiveness faced by today’s firms. It may be useful for students to look at industries rather than individual companies. A good example would be the American automobile industry. Facing a declining market share (as a result of Japanese competition), it was forced to change. It was imperative that it adopts Japanese practices with respect to quality and that it dramatically increases the speed with which it introduced new models. Another industry to look at would be the airline industry in which the major carriers were faced with competition from small, low-cost regional airlines. Since they could not compete with their existing high-cost operations, they were forced to develop alternative approaches. In this case, they set up separate low-cost operations. A third industry worthy of mention would be the computer industry in which the majority of the early innovators have long since gone out of business, and there continues to be periods of consolidation. In order to be able to complete, firms have had to move rapidly to adopt new technology and be responsive to the rapidly changing demands of the marketplace. 2. Describe large bureaucratic organizations with which you have had contact that has not responded flexibly to customer demands. Also describe examples of satisfactory responsiveness. What do you think accounts for the differences between the responsive and nonresponsive organizations? The term “bureaucracy” was defined by Max Weber to describe any organizational design that relies on the specialization of labor, a specific authority hierarchy, a formal set of rules and procedures, and rigid promotion and selection criteria. However, many students will probably think of governmental agencies since the term has been applied to these organizational entities and has assumed a somewhat pejorative meaning in recent times. A comparison between the United States Postal Service and UPS or Federal Express may be a useful example. Most students will have had experiences with both the post office and one of the alternative carriers and will be able to compare the attitudes and approaches of the organizations—and will probably have had different experiences. UPS and Federal Express are in a highly competitive environment and have had to both satisfy customer demands and innovate to protect their market position while the UPS has been allowed to continue its monopoly with respect to first class mail (in exchange for providing a nationwide service at relatively low rates) and thus has not been forced to compete. Another comparison might be K-Mart, WalMart, and Target. All are large discount retailers, but they have different strategies. How are they similar in responding to customer needs? How are they different? Which seems to have the most sustainable business strategy? 3. Considering the potential advantages of large and small size, would you describe the feel of your college or university as big, small, or small within big? Why? What might make it feel different? In the case of a college or university, size normally (but not always) offers prestige, a broader range of courses and facilities, greater support for students, greater academic achievement on the part of the faculty, and stability. A small college or university, by contrast, generally offers smaller classes and a greater sense of intimacy and friendliness. However, it often has limited facilities, a limited range of courses, and ongoing concerns over its fiscal stability. At some colleges and universities, the life of the institutions is built around individual houses, fraternities and sororities, clubs, etc., and it achieves a “small-within-big” environment. Changing the environment or “feel” of a college is not an easy task. A large institution can establish individual colleges and actively foster close interactions both among the students and between the faculty and students to try to create a “smaller” atmosphere. By contrast, a small college can seek to match the facilities of the larger institutions in both the academic and sporting areas. Students will have had very different experiences. Some will describe companies where people arrived early and left late, where people brought brown bag lunches so that they could work through the lunch period, and where people took a certain pride in how many Saturdays and Sundays they were in the office. Others will describe companies where people went to a local pub after work or got together on weekends for parties. And yet others will describe the job as merely being from 9 to 5 with everybody coming in at different times and not really paying much attention to what others did. The text suggests four sources of clues about the corporate culture: Corporate mission statement and official goals. Business practices. Symbols, rites, and ceremonies. The stories people tell. Students will probably comment first on the business practices of the organization, and then remember the symbols, rites, and ceremonies, and finally start to tell stories. Question: How important are the corporate mission statement and the official goals in creating culture? 4. What is a core capability? What would you say are the core capabilities of Toyota, Walmart, and Apple? Brainstorm some creative new products and markets to which these competencies could be applied. A core competence is the capability – knowledge, expertise or skill – that underlies a company’s ability to be a leader in providing a range of specific goods and services. It may help students if they address this question in terms of the functional areas of business. For example, Intel obviously has a core competence in the research and development area. It continues to develop new chips that enable it to be a leader. To date, other firms always have been one step behind. Coca-Cola and Pepsi Cola both have core competencies in the advertising and marketing areas that enable them to lead the field. Firms located in China, Hong Kong, Taiwan, and South Korea have core competencies in the production area as a result of their low labor costs, etc. 5. If you were going into business for yourself, what would be your core capabilities? What capabilities do you have now, and what capabilities will you develop? Describe what your role would be in a network organization and the capabilities and roles of other firms you would want in your network. Students (especially those at the undergraduate level) may feel that although they have a number of attributes (enthusiasm, willingness to work hard, a bright idea for a new product or service, etc.), they have no core competencies (nothing that will enable them to be leaders in a specific field). They may well argue that not very many people are leaders and that relatively few firms have core competencies unmatched by their competition. Students should be instructed to make a list of their skills and attributes…and of the skills and attributes they plan to develop in the years ahead. This will enable them to develop some ideas as to their core competencies. As students identify their core competencies with regard to a network organization, they should also begin to recognize some of their personal weaknesses and thus the skills that they would hope to find in others in the network. An accounting student might want to see expertise in the areas of sales and marketing while a student who felt at home in the production area might look for an individual with engineering capabilities. 6. Using an Internet search engine, search for “strategic alliance,” and identify three recently formed alliances. For each alliance, identify whether the companies’ other products are generally competitors or complementary products. What are the goals of the alliance? What brought them together? Discuss how you think a strategic alliance is or is not an effective way for these organizations to meet their goals. Students are likely to find examples of recent alliances between major corporations – especially in high-tech areas such as computers, telephones, cable television, entertainment, data and information transfer. These alliances bring together firms with very different skills as they attempt to position themselves for the coming education and information revolution. 7. What skills will you need to work effectively in (a) a learning organization, and (b) a high-involvement organization? Be specific, generating long lists. Would you enjoy working in these environments? Why or why not? What can you do to prepare yourself for these eventualities? To work effectively in these three types of organizations requires many of the same business skills and capabilities since the three types are not mutually exclusive. The management of many firms would probably argue that they had some of the characteristics of all three-organization types. The network organization describes a web of interrelationships among many firms. They are flexible arrangements among designers, suppliers, producers, distributors, and customers where each firm is able to pursue its distinctive competence. As defined, a learning organization is an organization “skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights,” and, to work effectively in this environment, you will have to be skilled at problem-solving, experimenting with new approaches, learning from your own experiences, learning from other organizations, and spreading knowledge quickly and efficiently. Most importantly, you have to feel excited by this type of dynamic environment. In order to work effectively in a high-involvement organization, you have to be able to communicate with speed and clarity both up and down the organization since it is relying on your inputs. You have to be a decision maker (which means you have to enjoy taking responsibility and risks), and you have to be highly knowledgeable about the customer, product, or service since this is the focus of this type of organization. Whether or not individual students will think they will enjoy working in these different types of organizations will depend largely on their personalities. Individuals who see themselves, as loners will probably not feel at home in a high—involvement organization. And those who prefer a very stable environment will obviously not wish to be employed by a learning organization that prides itself on its ability to change rapidly. Obviously, additional education and training (in both technical areas and in communications, decision-making, etc.) would help prepare individuals to function better in these various types of organizations. However, changing an individual’s personality is far more difficult, and many students, finding themselves in one of these organizations, may be better advised to look for other corporate environments more consistent with their personal style. EXPERIENTIAL EXERCISES EXERCISE 9.1 - MECHANISTIC AND ORGANIC STRUCTURES Objectives: 1. To think about your own preferences when it comes to working in a particular organizational structure. 2. To examine aspects of organizations, using your class as an example. Suggested responses 1. 10 One benefit of an organic organization structure is it creates flexibility and adaptability for people who have different needs from one another. For instance, an institution is more organic because it creates flexible time schedules, total quality management, and individuals can come and go as they please. There may be programs in the gymnasium, weight room, and wellness and safety programs are developed and maintained throughout the institution. 2.A. 10 Adaptable, flexible, in terms of planning. 2.B. 9 Open, flexible, for class discussion of research methodology, case method analysis and the taking of exams. 2.C. 10 Class may determine the course of events. 2.D. 9 Flexible for critiques of class and course of action taken. Students often believe that whether a class is mechanistic or organic has more to do with an instructor’s teaching style and personal attributes than anything else. While these factors certainly contribute to the structure of the class, mechanistic classes can also be the result of a large class size, a centralized decision-making structure (for example, when the textbook and syllabus are selected by committee), and the instructor’s past experiences with cheating/plagiarism. Organic classes are more likely to occur with smaller classes, more advanced students, and a more flexible administration. Teaching Tips 1. It may be helpful to students to start this class by defining the terms “mechanistic” and “organic.” 2. As a variation on the assigned approach, have students complete the worksheet on their own and then solicit their evaluations for each of the four scales. There will probably be quite wide variations that would lead to a discussion of the different perceptions and the reasons for the variations. EXERCISE 9.2 - THE WOODY MANUFACTURING COMPANY Overview This activity provides an opportunity to utilize a mini case to explore alternative work designs for a successful start-up company. The learner is provided with an opportunity to investigate the potential impact cause-and-effect between personality, motivation, communication, perception, and work design strategy. Working on the activity as a team provides the opportunity to continue the development of the team toward a more effective work unit. Case Overview The case, the situation and challenges faced by Mr. Woody are presented in a very short paragraph in the textbook. Mr. Woody has a clear vision, has hired 32 new employees with different skills, has a production process that includes 15 steps for making three different bar stools (his specialty product with standing orders of $750,000), and has commissioned an organization design expert (the students) to help him set up an optimal organization. Procedure for Class Discussion As the teams present their proposals, facilitate class questions that attempt to clarify the essence of the proposals. Individuals are likely to try to challenge the proposed recommendations. Do not permit a critique at this stage. After all the teams have presented their ideas, foster a discussion around the following themes. a. Compare and contrast between the proposed recommendations in terms of their overall strengths and weaknesses, short-term, moderate-term, and long-term impact. b. Explore the potential effects of the proposed designs on employee motivation and communication. c. Explore the role of management in the proposed designs. d. Examine the utilization of teams in the proposed design. e. If some of the designs proposed are individual based and some are more team-based, investigate the differences and similarities between them. Teaching Tip You might consider using this case as a midterm exam - in a mechanistic class have students present their results to the class while you grade them, but in a more organic class, students can grade papers for each other. CONCLUDING CASE DIY Stories Case Summary: DIY is a nationwide chain of stores that provides tools and supplies for home repair and maintenance. To gain an edge in the market, they hire avid do-it-yourselfers and retired trade workers and pay them a little more than the competition. They also provide fact sheets and building tips to customers so they can get supplies and advice for a successful project. DIY discovered that many consumers were researching their projects online, so DIY added online experts to its website as a result of a carefully thought out strategy by top management. The end result was that salespersons were identified in stores who had an acceptable level of internet savvy they were recruited to work three days in the store and two days online to respond to customer questions and share tips and links to inform customers about their building projects. In addition, the new “Do It with Us” web pages have become a valuable tool for other sales associates when looking for solutions to assist a customer who is in the store. Chapter Topics Related to the Case: •Discuss the concept of core competencies. •Identify how DIY built its online presence to organize around its core capabilities. •Discuss the impact of size on organizational agility. Case Discussion Questions: 1. As DIY Stores built its online presence, how well did it organize around its core capabilities? Suggested Response: DIY’s greatest strength is in their unique blend of retired trade workers and avid do-it-yourselfers who provide useful advice and insights to consumers who have a home project. This knowledge makes shopping at DIY a unique experience compared to other “big box” stores where there are lots of building supplies, but often little advice, knowledge, or suggestions for consumers to help their project go smoothly. By providing this same advantage via the internet, DIY built on its core capabilities to provide their knowledge to online consumers and sales associates across the nation. 2. DIY Stores is a large national chain. What impact did its size have on its agility? Suggested Response: Typically, one might expect a large organization to respond very slowly. Instead, DIY recognized a major shift it the market and created an appropriate response right away. DIY leveraged its size by drawing on the knowledge of their best sales associates to build an online knowledge and advice website for consumers. 3. How could DIY increase its agility in responding to the importance of the internet? Suggested Response Responses to this question are unlimited—bounded only by the creativity of your students. Answers might include DIY providing “real time” assistance with consumer questions during regular store hours as well as expanding the DIY online store. Chapter 10 Human Resources Management DISCUSSION QUESTIONS 1. How will changes in the labor force affect HRM practices for the next decade? As stated in the text, minorities, women (especially married women), and disabled workers will continue to play an important role in the increasingly diverse workforce. Assuming the affirmative action and equal employment laws remain unchanged, firms will have to be equipped to handle them. If they are substantially revised, as seems possible, then HRM practices will have to be modified to meet the new requirements. Regardless of whom they hire, firms will have to provide basic skills training for a growing percentage of its workforce. Diversity training should be provided for managers to enable them to supervise an increasingly diverse workforce. 2. Describe the major regulations governing HRM practices. Which, if any, have benefited you? Which ones could have benefited you but were not applied? The major regulations governing HRM practices are Title VII of the 1964 Civil Rights Act which prohibit discrimination in employment (recruitment, hiring, discharge, layoffs, discipline, promotion, compensation, and access to training) based on race, sex, color, national origin, and religion and its 1991 amendment which provided remedies for intentional discrimination. Other acts which come into play when considering HRM practices are the Americans with Disabilities Act of 1990 that prohibits employment discrimination against people with disabilities (including recovering alcoholics or drug abusers, cancer patients in remission, and AIDS victims), and the Age Discrimination in Employment Act of 1967 (and its later amendments) that prohibited discrimination on the basis of age. 3. How could job analysis be relevant to each of the six key HRM activities discussed in the chapter (i.e., planning, staffing, training, performance appraisal, reward systems, and labor relations)? A job analysis consists of two parts. The first is the job description that identifies the essential tasks, duties, and responsibilities of the position, and the second is the job specification that describes the skills, knowledge, abilities, and other characteristics needed to perform the job. Job analysis is important in that it provides the necessary information underlying the six key HRM activities: recruitment, selection, training, appraisal, reward systems, and out placing. Proper job analysis is critical in order to create an accurate job description which is used to guide each of these key activities. 4. What are the various methods for recruiting employees? Why are some better than others? In what sense are they better? Describe some of your personal experiences. Recruitment is the development of a pool of applicants for a job. It can be divided into two categories: internal and external recruiting. Internal recruiting involves considering current employees for the available position. The chief advantages of internal recruiting are that: It costs far less to identify internal candidates. The employer already knows the individuals and is thus better able to evaluate them. Internal candidates already know the work culture and are better equipped to fit in and can get up to speed faster. Promoting internal candidates provides a source of motivation in that employees see upward mobility as a reward for hard, effective work. There are two disadvantages: Internal recruiting may provide a limited applicant pool. Conducting an internal search and then awarding the position to an external candidate may result in the de-motivation of the internal candidate(s) who may feel that they were qualified for the position. External recruiting tends to be far more expensive (since it usually involves advertising, commissions to executive search firms, etc.). However, it has the advantage that it brings in “new blood” and can be a source of innovation, new ideas, fresh perspectives, etc. The major problem with external recruiting is that it is relatively difficult to evaluate the available candidates. Despite extensive interviewing and testing, it is often impossible to identify the critical weaknesses of the individual. Different sources are used depending upon the position. For entry-level positions, college campuses, employment agencies, and state unemployment agencies are used along with advertisements in local newspapers. For senior management positions, firms either advertise in publications such as The Wall Street Journal, leading national newspapers such as The New York Times, and trade publications, or rely on specialized employment agencies and executive search firms. 5. What is a test? Give some examples of tests used by employers that you have seen or heard about. A test is a critical evaluation of the candidate and normally falls into one of four classes. Performance tests—designed to measure the applicant's skills related to a specific job. Cognitive tests—designed to measure the various intellectual skills of the candidate. Integrity tests—used to measure the candidate's honesty. Drug screening tests—used to test for the presence of drugs. 6. What purpose does performance appraisal serve? Why are there so many appraisal methods? Which have you experienced, and what do you think of how they were used? Performance appraisal is an assessment of the employee's job performance and has three primary uses in that it provides. Information for making decisions with regard to increases in the individual's salary, suitability for promotion or, ultimately, for termination. Feedback to the employee to help plan career growth and development. Documentation, which can be used to support the firm's human resource decisions if challenged in court. A wide range of performance appraisal methods has been developed in order to meet the complex demands of the appraisal process. Performance measures can be grouped into four categories. Production data—units produced, sales volume, etc. Personnel data—turnover, absenteeism, accident rates, etc. Management by objectives (MBO) data—in which the employee and supervisor agree on specific performance objectives. Judgmental data—subjective evaluations of the employee's performance (normally made by the supervisor). In addition, an individual can be measured against a number of different scales. Trait scales—measurement of the individual's leadership, attitudes, etc. are measured against a numeric scale. Behavioral scales—which measure specific, relevant job skills. Comparative scales—used to make comparisons among employees. 7. What are some of the key ideas to remember when conducting a performance interview? What mistakes and best practices have you seen? Summarize the employee’s performance; be specific. Describe the expectations and standards. Determine the cause(s) of the below standard performance. Discuss solutions to the problem(s). Agree on a solution. Agree on a timetable for improvement. Document the meeting. Have the employee sign the document to show that (a) the discussion did take place and (b) that he or she is aware of the outcome. On the other hand, if the employee is doing a good or excellent job then you should: Summarize the employee's performance; be specific. Explain why the employee's work is important to the organization. Thank the employee for doing a good job. Raise any issues, such as areas for improvement. Express confidence in the employee's future good performance. Document the meeting. Have the employee sign the document to show that (a) the discussion did take place and (b) that he or she is aware of the outcome. 8. How would you define an effective reward system? What role do benefits serve in a reward system? An effective reward system has two main characteristics. First, it serves to attract, motivate, and retain personnel. Second, it rewards behavior that is consistent with the strategic goals and objectives of the organization. Benefits are the non-salary aspects of the reward system and are divided into those that are required by law (worker's compensation, social security, and unemployment insurance) and those which are discretionary on the part of the company such as paid vacations, pension plans, medical and dental insurance, educational support (for both the employee and dependents), etc. These benefits can represent a substantial incentive to employees. For example, an attractive medical and dental program is a major benefit to a couple with a large family. 9. Why do workers join unions? What implications would this have for the organization that wishes to remain nonunion? Workers join unions because they see the relationship between management and its employees as being an adversarial one. They see an advantage in having an organization (representing a large number of individuals) negotiate with management on their behalf. Rather than having to negotiate with management on their wages, hours, and working conditions, they prefer to assign this responsibility to a union. If an employer wishes to remain non-union, it must prove to its workforce that (a) it has the best interests of its employees at heart and (b) there is little or nothing to be gained by paying dues to a union. This means that it has to at least match the wages and benefits obtained by comparable workers in a union environment. 10. Discuss the advantages and disadvantages of collective bargaining for the employer and the employee. The major advantage for both the employer and the employee is the ability to explore, analyze, and better understand critical issues. Once a union contract has been negotiated, the document provides a specific outline of the procedures and expectations. The major disadvantage is the adversarial role that the process engenders. Another drawback is that a negotiated document often limits the firm's flexibility in terms of rewarding superior performance and inhibits positive change. EXPERIENTIAL EXERCISES EXERCISE 10.1 - THE LEGAL INTERVIEW Objectives 1. To introduce you to the complexities of employment law. 2. To identify interview practices that might lead to discrimination in employment. Suggested responses
1. Could you provide us with a photo for our files? L In certain situations photos are a legal BFOQ where personal hygiene is relevant.
2. Have you ever used another name (previous married name or alias)? I It is illegal to ask.
3. What was your maiden name? I Irrelevant to job performance.
4. What was your wife’s maiden name? I Irrelevant to job performance.
5. What was your mother’s maiden name? I Irrelevant to job performance.
6. What is your current address? L For mailing purposes.
7. What was your previous address? I Irrelevant to job performance.
8. What is your social security number? L For tax purposes.
9. Where was your place of birth? I Irrelevant to job performance.
10. Where were your parents born? I Irrelevant to job performance.
11. What is your national origin? I Irrelevant to job performance.
12. Are you a naturalized citizen? I Irrelevant to job performance.
13. What languages do you speak? L For job requirement.
14. What is your religious/church affiliation? I Irrelevant to job performance.
15. What is your racial classification? I Irrelevant to job performance.
16. How many dependents do you have? I Tax deductions only.
17. What are the ages of your dependent children? I Irrelevant to job performance.
18. What is your marital status? I Irrelevant to job performance.
19. How old are you? L BFOQ requirement/safety.
20. Do you have proof of your age (birth certificate or baptismal record? L BFOQ requirement/safety.
21. Whom do we notify in case of an emergency? L Relates to an emergency.
22. What are your height and weight? L If it is a BFOQ requirement.
23. Have you ever been arrested? L If it is a BFOQ requirement.
24. Do you own your own car? L If it is a BFOQ requirement.
25. Do you own your own house? I Irrelevant to job performance.
26. Do you have any charge accounts? I Irrelevant to job performance.
27. Have you ever had you salary garnished? I Irrelevant to job performance.
28. To what organization do you belong? L If it is a BFOQ requirement.
29. Are you available to work on Saturdays and Sundays? I Irrelevant to job performance.
30. Do you have any form of disability? I Irrelevant to job performance.
Teaching Tip 1. It might be advisable to present a review of the materials on discrimination in employment before assigning this exercise. 2. The individual test items can be used for a comprehensive class discussion of discrimination in employment. 3. “Legal” interview worksheet EXERCISE 10.2 - THE PAY RAISE Objectives 1. To further your understanding of salary administration. 2. To examine the many facets of performance criteria, performance criteria weighting, performance evaluations, and rewards. Suggested responses One option for April may be to develop a point system. Ranking: Rank each person in each category from 1 to 7 (7 being the highest/best). (EEO Status and Personal factors need not be ranked assuming equal employment opportunity laws, as well as affirmative action programs, are in place. For Supervisory Skills give each person a 4 for Excellent, 3 for Good, 2 for Average, and 1 for Poor. Add up the scores for each person and rank as one category (Supervisory Skills). Weighting: Each category will be weighted as follows: Output Rating – 4, Supervisory Skills – 3, Seniority – 2, and Absent Rate – 1. (Output Rating is the most important, Absent Rate being the least important.) Multiply the rank of each employee for each category by the corresponding weight for each category and add up the results. (Example: David Bruce has the highest Seniority (7), multiplied by the seniority weighting (2). His score for Seniority totals 14). Teaching Tip It is important that the student teams achieve an allocation formula that is based on quantifiable criteria that are directly related to work performance. CONCLUDING CASE Invincibility Systems Case Summary: Invincibility Systems has 17,000 employees who design and make aerospace and defense equipment including missiles, rockets, and propulsion systems. They are applying the same statistical fervor to their recruiting process that they use to determine rocket trajectories. Using regression analysis, they determined which sources generated the most hires as well as which new hires went on to perform well. This helps the company narrow its focus on the most productive sources for quality employees and saves both time and money. The HR team then used a similar approach to workforce planning. By collecting and analyzing data on employees in each department, they can predict how many employees will leave in the coming year and predict how many new employees need to be hired. By conducting their analysis at the employee level, they can see when turnover might increase or decline and which employees are most apt to leave. This is particularly important in a company such as Invincible where employees file highly specialized and high-skilled positions. Chapter Topics Related to the Case: •Discuss other factors that Invincibility Systems might take into account in its HR planning. •Identify any legal concerns that data analysis at Invincibility might raise. •Identify types of training and development programs that might be developed as a result of the company’s statistical systems and data. •Discuss ways the company might integrate statistical measures with their appraisal and reward systems. Case Discussion Questions: 1. Besides the factors identified, what other factors should Invincibility Systems take into account in its HR planning? Suggested Responses: Students will likely mention factors such as selection criteria, appraisals, and rewards. You might write a list of areas that HR might measure and project it for students to read. Divide the class into groups and have them brainstorm which topics would most benefit a company and how they might implement a statistical measurement system to benefit the company. 2. What legal concerns does the data analysis at Invincibility raise? How should the company address those issues? Suggested Responses: One of the benefits of using a statistical approach is that HR would have documented evidence to support their decisions and actions. As long as HR is using the data to plan for the future via hiring demand, training, and development, not to decide who to hire, they are in little danger of legal repercussions. The company must be careful not to use knowledge gained from statistical data to eliminate or discriminate against any potential employee. 3. Besides its use for HR planning and recruiting, how might Invincibility’s data analysis be applied to improving the company's training programs? Suggested Responses: Various responses can be expected. As an example, employees could be surveyed to determine which manager behaviors are most desirable, similar to the approach that Google has taken. In addition, successful managers could be analyzed to determine the development strategies that are most likely to produce other successful managers. Chapter 11 Managing the Diverse Workforce DISCUSSION QUESTIONS 1. What opportunities do you see as a result of changes in our nation's workforce? This is a very open-ended question, and may lead to another question, namely: Opportunities for what? One way of approaching it is to consider the business opportunities resulting- from the changes in the nation's workforce and look at the change by segment. Gender issues. The text points out that 47% of the workforce in the U.S. are women. These women, in addition to their jobs, still perform the bulk of family responsibilities, and thus represent a tremendous market for businesses that can make their lives easier. Providing daycare is a major opportunity as are home delivery services, buying services, etc. Minorities and immigrants. Nonwhites will comprise approximately 27 percent of the total work population. Many of these will be immigrants whose language skills are limited, and thus there will be a growing opportunity for language training. Many, although born and raised in the United States, are not sufficiently proficient in the English language to move immediately into managerial roles. They will, therefore, also represent a substantial market opportunity for training. Mentally and physically disabled. This is another group that will enter the workforce in growing numbers, and they will represent business opportunities ranging from the modification of buildings to provide access to the redesign of jobs to enable them to work. In many cases, the development of computer-based systems will enable them to join the workforce from their home or wheelchair. 2. Is prejudice declining in our society? In our organizations? Why or why not? This question should generate a wide variety of responses. Some students (especially white males) will argue that prejudice in society is declining dramatically. They will point to the growing integration of U.S. society following the elimination of discriminatory laws, policies, and regulations. They will probably point to the acceptance of African-Americans in sports, women in business and politics, etc., and may note the growing acceptance of multiracial couples. Some may even suggest that society has gone too far in its efforts to eliminate prejudice. Female students may see the situation as far less positive while African-Americans and other ethnic minorities may be even less convinced that the situation has improved. Women may observe that many men are still highly prejudiced when it comes to evaluating their skills and abilities. They will point to the "glass ceiling" that has prevented many women from rising to their deserved level in the organization. African-Americans and other minorities (especially those who currently live or grew up in minority areas of major cities) may still feel that the bulk of society is still highly prejudiced against them ... and that the media (by focusing on the violence and drug addiction prevalent in many of these communities) has, in fact, reinforced stereotypes and misconceptions and has increased the level of prejudice. They may also observe that, on campus, minorities tend to stick together as a means of protecting themselves against this prejudice. 3. What distinctions can you make between affirmative action and managing diversity? The primary goal of affirmative action was to correct past injustices. Women and minorities had not benefited from the growth and expansion of U.S. corporations. They had been systematically ignored for entry-level positions and had been discriminated against in terms of promotion opportunities. Affirmative action legislation was designed to ensure equal opportunity for all applicants and targeted advertising campaigns to encourage minority candidates to apply for positions. The goal was to make sure all employees were treated equally during employment, without regard to race, creed, color, or national origin. Managing diversity is focused on identifying commonalities to draw the workforce together and also to create an environment where individual differences are accepted. Diversity management helps employees work together through creating common goals, emphasizing teamwork, and utilizing appreciation and recognition of good performance. 4. How can managers overcome obstacles to diversity such as mistrust and tension, stereotyping, and communication problems? Mistrust and tension usually result from lack of contact and lack of familiarity. These can be overcome, to a large degree, by bringing individuals together in both formal and informal settings, so they learn to better understand and appreciate members of other groups. Formal training, designed to identify the causes of mistrust and tension, can also help in this process. Stereotyping is the perception of others based our own interests, values, and cultures that distort and block what we see and hear. Formal training (through the use of descriptive examples) can be effective in helping individuals identify the root causes of their stereotyping. In order to be able to change, people must first understand what it is that distorts their perspectives. Communication problems exist within all racial and cultural groups. Even among white males of the same age and background, there are opportunities for misunderstandings and confusion. The potential for errors and inefficiencies increases when the communications are between people with very different backgrounds, attitudes, expectations, etc., and the situation is potentially disastrous when one or more parties is not fluent in another's language. Language training (in whatever language is used in the workplace) is obviously one way of addressing this problem. However, sensitivity training can also help make people aware of cultural and attitudinal differences and thus more understanding of the difficulties faced by others when it comes to communication. Listening skills can also be enhanced. Most people (even those who speak well) are not good listeners, and a program designed to help them listen carefully will improve the level of communications. 5. How can organizations meet the special needs of different groups (e.g., work and family issues) without appearing to show favoritism? An organization can take a couple of steps to ensure that it treats different groups with a degree of equity. It can make sure that it Listens carefully to the concerns and needs of all groups. Applies all rules and regulations equally to the different groups. For example, maternity leave for women can be matched by paternity leave for men on the same terms, so they are treated equally. Likewise, a group wishing to take a particular day as a religious holiday can be offered the choice between that date or one of the regular holidays, so both groups receive the same benefits. 6. How can diversity give a company a competitive edge? Can diversity really make a difference in the bottom line? How? Diversity can give a company a competitive edge because the various diverse groups that make up the company can: Provide the company with insights and perspectives on previously underemphasized market segments. Sell more effectively into these specific market segments. Improve the company's overall image in the marketplace — as a good corporate citizen Attract other qualified individuals to the company's workforce. Change the general thinking and attitudes of the organization — making them more flexible and creative. 7. Why are these issues sometimes difficult to talk about? What could make conversations both more comfortable and productive? While answers may vary, students may mention the challenges of diversity and inclusion as why these conversations difficult. These challenges include unexamined assumptions, lower cohesiveness, miscommunications, mistrust and tension, and stereotyping. Some students may also present that the potential for loss of status and covert and overt prejudice. EXPERIENTIAL EXERCISES EXERCISE 11.1 - BEING DIFFERENT Objectives 1. To increase your awareness of the feeling of “being different.” 2. To better understand the context of “being different.” Suggested responses 1. Student responses will vary. The situation in being different is when one is ostracized from the group. One must have their own set of values. Different personalities will lead to diversity or difference. 2. Student opinions will vary. How I felt is derived from the diversity of opinion. 3. My behavior would be adjusted to meet the situational demands. This would depend on my core beliefs and attitude as to how entrenched I would be based on the diversity of opinion. 4. Others would view a strong set of a core of beliefs, attitudes, and their behavior would not be adjusted to meet my expectations. 5. The situation would require flexible, adaptable behavior on my part to meet the expectations of the group. 6. My behavior would be adjusted to meet the demands of the group. The core beliefs and attitudes of the group would reshape and force me to rethink the situational demands. Suggested Responses to Discussion Questions 1. Were there students who experienced being different in situations that surprised you? Student responses will vary. A suggestion would be that different individuals have different personalities, different interests, and different goals. Yes, some students may share experiences of being different that challenge stereotypes or assumptions, such as excelling in unexpected fields or navigating unique cultural identities. These stories highlight the multifaceted nature of "being different" and the resilience required to navigate such situations. Surprising situations often stem from hidden differences, such as values or perspectives, that surface in specific contexts. They emphasize the importance of empathy and understanding diversity. Such insights can broaden our perception of inclusion and group dynamics. 2. How would you define “being different”? Here again, student responses will vary. Differences will vary based on diversity, gender, age, values, attitudes, and behavior. "Being different" means possessing traits, perspectives, values, or behaviors that set an individual apart from the majority in a specific context. It often involves deviating from societal norms, group expectations, or shared identities. This distinction can arise from physical attributes, cultural background, personal beliefs, or unique experiences. While it may lead to challenges such as exclusion, it also fosters diversity and innovation. Embracing these differences enriches interpersonal relationships and broadens collective understanding. 3. How can this exercise be used to good advantage? This exercise can be used to good advantage to highlight a discussion of the differences to provide an improved understanding of the environment where we live and work. Notice there will be diversity in opinions. Teaching Tips 1. It is very important that students let down their defenses and speak candidly and openly about this exercise. However, care must be taken to prevent unnecessary hard feelings. 2. Hand out party hats to one-half of the class and have them wear them during the class. At the end of the exercise, ask them how they felt during the class. Did it make them feel differently about the exercise or themselves? EXERCISE 11.2 - GENDER STEREOTYPES Objectives 1. To explore stereotypes related to gender. Suggested Responses Students are likely to feel uncomfortable with the way they have been portrayed by the opposite gender. This is particularly true when negative, but accurate, characteristics are brought to light in the role plays. Thus, during discussions about the role plays, it is important to emphasize the fact that two-way communication is critical to improving diversity and relations among different groups. Not only must the traditional majority group listen to and learn from the minority group, but the minority group must listen to and learn from the majority group. EXERCISE 11.3 - HE WORKS, SHE WORKS Objectives 1. To enable students to explore the issue of stereotyping and to show how easy it is to fall into the trap of extrapolating from a situation or a sentence to a stereotypical comment. Suggested responses The family picture is on his desk: His family will come before his career. 1. The desk is cluttered because it is consistent with his personality. Organization would not be a high priority for this individual. 2. He is more likely to be an extroverted personality and would value social interaction among his co-workers. 3. He is not at his desk, therefore, would have higher priorities or needs to be satisfied away from his desk. 4. Student responses will vary. He probably has more pressing needs to be achieved outside the office. 5. Having lunch with one’s boss will satisfy the social interaction need and possibly have a self-esteem need met at the same time. 6. The boss critiquing an individual may result in behavior unacceptable to the boss. 7. Getting an unfair deal may result in adverse behavior and force an individual into self-examination of one’s behavior. 8. In getting married, one must adjust to new expectations and needs that may vary based on the arrangement of the marriage. A picture on one’s desk is worth 1,000 words, due to the importance or set of values one may possess. 9. For a business trip, one must be prepared and organized to meet the demands of the trip. 10. In leaving for a better job, one must have a career plan and recognize the benefits outweigh the costs. The family picture is on her desk: Her family will come before her career. 1. She is dysfunctional, and organization is not important to her. 2. She is extroverted and distracted from her job. 3. She is occupied by other criteria and has more pressing needs. 4. She values personal time more so than performing her job. 5. She is being recognized for her other talents. 6. The boss critiquing could formulate an adverse working relationship or defensive posturing. 7. She could react with defensive posturing or discriminated against. She may be subjected to the glass ceiling. 8. She should be euphoric and/or highly emotional. 9. She may demonstrate a concern over leaving her family. 10. She is more concerned with her family’s needs and is hopeful there is a better job ahead. Teaching Tips 1. Role-play this exercise. Have a male and female student sit at the front of the class behind identical desks. Take the comments in pairs (i.e., his desk is cluttered; her desk is cluttered) and compare the comments about the two individuals. 2. Divide the class into male and female students and have them separately prepare group responses that are then presented by a spokesperson. Compare and contrast the comments. CONCLUDING CASE Niche Hotel Group Case Summary: Niche Hotel Group operates distinctive hotels in major cities throughout the United States. It has an enthusiastic, talented, and racially diverse workforce. The company’s vice president of human resources, Monique Johnson, meets weekly with the chief executive to review NHG’s performance in attracting and developing talent. Recently, Monique learned that at one hotel, a manager had received complaints of an assistant manager embarrassing male servers in the sushi bar because they are gay. In investigating, Monique learned that every employee receives mandatory diversity training, yet complaints such as these continue to surface, even after the training is repeated. Chapter Topics Related to the Case: •Discuss how a diverse workforce can provide a competitive advantage to a company like Monique’s. •Identify challenges associated with managing a diverse workforce. •Describe how managers can cultivate diversity. •Evaluate diversity training programs. Case Discussion Questions: 1. How can promoting a diverse workforce help Niche Hotel Group succeed as a business? Suggested Response: Diversity in an organization’s upper ranks has been associated with superior financial performance. Being a diverse organization widens the pool of talented employees available to NHG, and it can provide more perspectives on the different kinds of guests who stay at the hotels. Diversity can promote creative thinking, especially about how to deliver services that will delight a variety of guests. It also can help create and reinforce a flexible organizational culture. 2. Why do you think diversity training has not always prevented problems at NHG? Suggested Response: One possibility is that the training is too limited. Often, diversity training focuses on awareness without teaching the practical skills for navigating relationships with people who are different from oneself. Another possibility is that NHG is relying on training alone and failing at other management activities such as defining goals and rewarding performance in the area of diversity. The evidence that NHG repeats the same training program when problems occur could support either of these possibilities or both. 3. What should NHG do to improve its climate for diversity? Suggested Responses Other ways managers can create a climate promoting diversity include developing a mission statement that includes valuing diversity, creating a management position charged with promoting diversity, conducting a formal organizational assessment, modifying the training program, setting up support groups, providing mentors and other career development for employees who need help navigating career paths, establishing policies that support diversity (for example, flexible schedules and holidays), and setting performance targets that make all managers accountable for valuing diversity. PART III SUPPORTING CASE Zappos 1. Evaluate whether you think Zappos is a responsive organization. How do you expect its recent downsizing to affect its responsiveness? Zappos has several characteristics of the organic structure, which is seen as allowing the organization to be more responsive. The values of embracing change and wowing customers support the condition of job responsibilities changing as needs arise. The emphasis on measuring performance in terms of living out values, rather than completing tasks, encourages employees to rely more on judgment than on rules. The idea that commitment to goals outweighs obedience to authority is consistent with the emphasis on core values. And values such as having fun and being humble support personal relationships and interdependence among employees. Also, the high value placed on learning would help Zappos be responsive. The challenges of downsizing might include the difficulty of sustaining a fun culture and too much pressure on employees in a smaller company, so they can’t wow customers and coworkers. Perks that contribute to a fun atmosphere might come to be seen as too expensive. If any of these issues erode the dedication and commitment of Zappos employees, they could hurt the company’s responsiveness. 2. How does human resource management reinforce Zappos’ core values? Each activity of HRM is used to reinforce the core values. In terms of planning, the company operates in relatively low-cost areas (Las Vegas and Kentucky), so it can afford to hire its own employees dedicated to the culture, rather than outsourcing. It recruits at a whimsically written Web site, where employees are invited to submit video “cover letters.” It selects candidates based on how well they share the core values. It rates performance in terms of core values and offers training in core values on which employees don’t score well. Pay is not generous, but the company offers incentives and benefits related to core values, including the spirit of fun. 3. How well do you think Zappos’ human resource strategy supports the valuing of employee diversity? What diversity issues does Zappos need to address? Answers will vary. Students may note that the company wants all its employees to share one set of values. Perhaps this is a way of discouraging diversity of thought, but it also could be seen as opening up the company to people of all races and ages and both sexes, etc. who happen to hold those values. Some students may see evidence of diversity in the two managers described, Tony Hsieh and Hollie Delaney. One diversity issue is the use of video cover letters. If the company winds up with a hiring pattern that looks discriminatory, that outcome could raise questions about whether hiring personnel are using a screening method that unfairly targets a protected group (disparate impact). Another practice that may raise questions for students is the use of values-based performance appraisals: can managers be objective enough? Students may see other issues as well. Chapter 12 Leadership DISCUSSION QUESTIONS 1. What do you want from your leader? People want leaders who will: •Help them accomplish their goals by providing training and resources, clarifying a plan or goal, keeping them on task and on target, removing roadblocks and holding them accountable. •Treat them with respect by asking for their opinion, giving them a job that matters, helping them when it is necessary, and giving them the authority to match their accountability. 2. Is there a difference between effective management and effective leadership? Explain your views and learn from others’ views. Effective management and effective leadership can be quite different. Effective management involves the creation of a positive work environment in which the organization and the employees have the opportunity (and the incentives) to achieve high performance. Effective leadership, by contrast, is the ability to influence others to achieve the goals of the organization. Not all managers (who are appointed) have the skills to be good leaders although, ideally, all managers should be leaders. However, good leaders (who may either be appointed or emerge from within a group) should possess good management skills but would be well advised to leave the management functions to others while they focus on implementing the company’s vision and mission and establishing organizational goals. 3. Identify someone you think is an effective leader. What makes him or her effective? Each student will have his or her own “candidates” as effective managers. One way of approaching this question is to have students make a list of these individuals and then have them attempt to identify why, specifically, they selected each individual. What specific traits and skills did they associate with the individual? Among the traits (identified in the text) which might be considered are (1) drive, (2) leadership motivation, (3) integrity, (4) self-confidence, and (5) knowledge of the business. The skills would be specific abilities resulting from knowledge, information, practice, and aptitude. 4. Do you think most managers can be transformational leaders? Why or why not? Transformational leaders are ones who transform visions into reality. As the text points out, they get people to transcend their personal interests for the sake of the group. They generate excitement by (a) being charismatic, (b) giving individualized attention to their subordinates, and (c) being intellectually stimulating. In order for managers to be a transformational leader, they must first have a vision of the future, one that excites their subordinates. Some managers find it very difficult to think beyond the confines of the day-to-day routine. However, there are training programs that can help expand a manager’s thinking. In addition, many employees have ideas and suggestions for enhancing the growing the organization. Good managers develop a relationship with employees which opens the door for sharing these ideas. While, in the eyes of many leading researchers, it is impossible to teach managers to be charismatic, they can certainly improve their skills in terms of giving personalized attention to subordinates. So, while it may not be totally feasible to transform managers into transformational leaders, it may be possible to teach them some of the skills. 5. In your own words, define courage. What is the role of courage in leadership? Give examples of acts of leadership you consider courageous. Courage is the attitude of facing and dealing with anything recognized as dangerous, difficult, or painful, instead of withdrawing from it. Leadership certainly includes elements of courage. As the text points out, “The leader’s job is to create a vision,” and almost inevitably a vision will imply a course of action that is far from easy to implement and may involve a degree of danger for the organization. Students will obviously have their own examples of courageous leadership. For example, a manager’s decision to sell off a number of profitable elements of a company in order to invest the proceeds in another high-risk area would certainly be classed as a courageous act. 6. Do you think men and women differ in their leadership styles? If so, how? Do men and/or women prefer different styles in their bosses? What evidence do you have for your answers? The current thinking, influenced largely by Judy Rosener’s study, is that men and women do have somewhat different leadership styles. While men tend to rely more on their formal authority and on rewards and punishment, women tend to use their charisma, interpersonal skills, hard work, and personal contacts. Also, and more importantly, Rosener suggests that women leaders are more likely to encourage participation, share power and information, and enhance other people’s self-worth. It has been suggested that they are more oriented to generating a consensus than their male counterparts. As to whether or not men or women prefer different styles from their bosses, one might argue that it will depend very much on (a) their bosses’ styles, (b) whether or not their bosses are successful, and (c) whether or not they feel comfortable adopting a style. 7. Who are your heroes? What makes them heroes, and what can you learn from them? Heroes are as individual as your students. Expect to get a wide variety of responses here, from business leaders to entertainment figures, politicians, religious figures and a host of people who have touched the lives of your students in one way or another. There may even be a teacher or two in the list! Students learn courage, integrity, respect, perseverance, job skills, life skills, and a host of other skills and characteristics from their heroes. 8. Assess yourself as a leader based on what you have read in this chapter. What are your strengths and weaknesses? One way of approaching this question is to have each student go through the chapter and make a list of those factors (skills, traits, behavior patterns, etc.), which they believe are important in a leader. They can then evaluate themselves against these factors as being strong, weak, or somewhere in the middle. Alternatively, they can rate each of the factors (from 1-5, with the entire range totaling 100) and score themselves on each to give an overall score of their leadership assessment. 9. Identify the developmental experiences you have had that may have strengthened your ability to lead. What did those experiences teach you? Also identify some developmental experiences that you need to acquire and how you will seek them. Be specific. Most students will have had some developmental experiences ranging from being asked to head up a group to perform a task or being elected as a class officer to being appointed to a position in an organization where they will have had to deal with other individuals, where success will have depended on their ability to get others to perform and cooperate. These experiences may have taught them the importance of any number of skills including the importance of clear communications and instructions, ensuring that all parties are involved in the process and are committed to the outcome, paying attention to individual members of the group, and giving praise and rewards wherever appropriate. 10. Consider a job you hold or held in the past. Consider how your boss managed you. How would you describe him or her as a leader? What substitutes for leadership would you have enjoyed seeing put into place? Certain follower, tasks, and organizational factors are substitutes for some leader behaviors. For example, group maintenance behaviors are less important if the group is closely knit if there is a professional orientation, or if the job is intrinsically satisfying. Task leadership behavior is less important if people have a lot of experience and ability, feedback is supplied to them directly from the task, or if the rule and procedures are rigid. Students will describe a variety of experiences with their bosses as leaders. There are a number of instances in which substitutes for leadership may or may not be desirable. For example, a group of welders and riveters is assembling a large water tower for a city water supply. All of them are experienced and work well together as a friendly, cooperative unit. Their task is clear and unambiguous – weld 25 panels per day. The straightforwardness of the task and the cooperative relationships could well serve as substitutes for active, formal leadership. On the other hand, a group of software engineers has decided to launch a new company to design and market training software for human resource personnel. Although they each have a great deal of technical expertise, they know nothing about financing the enterprise or marketing their product. In this case, the goals are unclear, and the members are unlikely to reach an easy agreement. Substitutes for leadership would not be appropriate here. 11. Consider a group or an organization in which you are a leader or a member. What could great transformational leadership accomplish? Great transformational leaders generate excitement in three primary ways: They are charismatic. They give their followers individualized attention – by delegating challenging work to deserving people, increasing people’s responsibilities, keeping lines of communication open and providing one-on-one mentoring to develop their people. They are intellectually stimulating. They arouse in their followers an awareness of problems and potential solutions. They articulate the organization’s opportunities, threats, strengths, and weaknesses. They stir the imagination and generate insights. They get full commitment from followers. The skills or strategies that transformational leaders have are: Vision – a goal, an agenda or a results orientation that grabs people’s attention. They communicate their vision, through words, manner, or symbolism; they relate a compelling image of the ultimate goal. They build trust by being consistent, dependable, and persistent. They project integrity by choosing a direction and staying with it. They have positive self-regard. They do not feel self-important or complacent rather they recognize their strengths and weakness, nurture and continually develop their talents and learn from failure. 12. Name some prominent leaders whom you would describe as authentic and inauthentic and discuss. This is a tricky question to handle in class, and it can lead to a valuable discussion about respecting the opinions of others. The leaders mentioned in this conversation are likely to be political leaders, for example, Barak Obama and George Bush. Whether they are seen as “authentic” or not depends on a person’s political leanings. 13. Name some leaders you consider servant-leaders and discuss. Nelson Mandela and Mother Teresa are two examples of servant leaders. Both are people who were willing to give up their own self-interests for the good of others—in the case of Nelson Mandela, he fought to end apartheid for the people of South Africa, and in the case of Mother Teresa, she gave up everything to help the impoverished street people of India. A more business-oriented example of a servant leader is Jim Sinegal, the CEO of Costco. Sinegal’s philosophy is that by treating employees and customers right, he increases both customer and employee loyalty, making the business more stable in the long run. As Sinegal says, “This is not altruistic—this is good business.” 14. Identify some opportunities for you to exhibit shared, lateral, and other forms of leadership that are not “top-down.” The most obvious answer to this question is for students to discuss the possibility of leadership in class groups. Try to draw them out—have they seen shared leadership and lateral leadership in the groups they’ve worked in, or does one person usually take on the leadership role and run with it? What would have to happen for shared leadership to take place? EXPERIENTIAL EXERCISES EXERCISE 12.1 – USING THE FIVE SOURCES OF POWER AT WORK Objective To explore how power can be applied to organizational challenges to create positive outcomes. Instructions Read each of the scenarios (below) and choose one of the five sources of power to resolve the challenge in each scenario. Five Sources of Power Worksheet Five Sources of power: 1. Authority 2. Rewards 3. Punishments 4. Appealing personal characteristics 5. Expertise Scenario #1: Assume you are a supervisor of an IT department at a website hosting company. You want your staff to complete a large project within the next two months. Usually, such a project would take about three months to accomplish. To persuade your staff to rise to this challenge, you offer each of them three additional paid vacation days. Your staff enjoys taking three-day weekends, so the incentive should motivate them to finish the project within the shorter timeframe. As the supervisor, you are using ______________________ power to motivate your staff. Scenario #2: Assume you work at a local retail store. As a part-time employee working your way through college, you are not interested in becoming a manager. Even so, sometimes you wish you were in charge. Just yesterday, your boss asked if you would be willing to work two extra days per week for a month. After you explained that you could only work your usual three days per week due to college and other commitments, your boss threatened to cut your hours indefinitely. Given how much you need the money, you begrudgingly accepted to work the two extra days per week. Your manager is using _________________________ power to persuade you to work the two extra days per week. Scenario #3: Assume you were recently promoted to assistant manager of the bank in your hometown. You are friends with the employees who now report to you. You notice that the employees still treat you like a buddy and do not seem to respect you in your new role. You decide that it will be in everyone’s best interest if you assert yourself by reminding them that you are now their manager (and not their buddy). This is a challenging transition, but you feel the need to have their respect now that you are the manager. You are using _________________________ power to encourage employees to respect you in your new role as assistant manager. Scenario #4: Assume you are an experienced marketer of outdoor adventure trips. You recently changed jobs. While working for your previous employer, Outdoor Adventures, you created several successful marketing programs that resulted in a 30 percent increase in sales over a three-year period. Now that you recently joined Eco Tours & Adventures, none of your co-workers know the extent of your marketing knowledge. Your goal is to increase your power within the company. You decide to develop a really impactful and creative marketing campaign unlike any used by Eco Tours & Adventures in the past. You are using _________________________ power to increase your influence at Eco Tours & Adventures. Scenario #5: Assume you are a salesperson and just found out that your organization’s largest client is thinking about moving its business to one of your competitors. If this happens, you will lose about thirty percent of your commission this year not to mention the loss of revenue to your company. You decide to rush over to see your contact at the client company. You spend two hours listening to why the client might leave and ask repeatedly what your company can do to make things right. You are nervous, but still, use your charm and sense of humor to convince your contact that you and your company deserve one more chance. Your contact agrees to get you a meeting with the CEO and to put in a good word for your company. She says she is doing this because she likes you (professionally) and doesn’t want to see you lose the business. You are using _________________________ power to convince your contact that you and your company deserve another chance. CONCLUDING CASE Breitt, Starr & Diamond LLC Case Summary: Josh Breitt, Rachel Starr, and Justin Diamond started an advertising agency to serve the needs of small businesses in their metropolitan area. Each brings different assets: Breitt is the creative genius, Starr has media contacts, and Diamond is the artist. As the agency grew, it hired several employees: a bookkeeper, graphic artist, Web designer, two salespeople, a social-media expert, and a part-time human resource manager. The growth of the firm requires more attention to management—a set of tasks that doesn’t play to the strengths of any of the founders. They hired a general manager of operations, Brad Howser, who had been an administrator for a medical office. Unfortunately, Howser’s leadership style soon began to alienate the employees. Chapter Topics Related to the Case: •Discuss the concept of leadership •Identify and discuss the personal skills and traits of effective leaders •Describe the effects a leader such as Brad would have on an organization •Match leadership styles to the requirements of an organization •Discuss methods an individual like Brad could utilize to develop improved leadership skills Case Discussion Questions: 1. Assume that hiring a general manager of operations was a good idea. What leadership style would be most effective in this position? Why? Suggested Response: Students should apply the contingency models of leadership to the information from the case study. Depending on the model(s) used, answers will vary. However, some conditions suggest a pattern. The ad agency seems to have been set up without much structure, and the people who work there are filling diverse roles. Some will likely be engaged in teamwork on assignments; others (the bookkeeper, HR manager, and salespeople) will be largely on their own. This kind of situation requires some clear direction. At the same time, a group of experts in different disciplines did not welcome Howser’s autocratic style. The agency’s leader needs some form of relationship-oriented or consultative leadership to ensure that policies and procedures align with actual needs and to get buy-in from the followers. 2. What leader traits and behaviors did Brad Howser exhibit? How well do they fit the needs of the ad agency? Suggested Response: Howser observed operations and announced changes, rather than consulting and discussing ideas. He was firm about the rules he established, critical of employees, and reluctant to delegate. His knowledge of controlling could have fit the ad agency’s needs, but because of his leadership style, the value of this skill was lost. His ineffectiveness was apparent in the unhappiness of those who should have been his followers. 3. Consider your own leadership style. What types of positions and situations should you seek out? What types of positions and situations should you seek to avoid? Why? Suggested Response: Responses provided by the individual students will reflect their personal points of view. As an example, if a student states he or she is an autocratic or authoritarian leader, that individual may state a prison guard would be an excellent position to seek out. This individual would be likely to indicate avoidance of ministry work, where compassion, empathy, and understanding are essential. Solution Manual for Management: Leading and Collaborating in a Competitive World Thomas S. Bateman, Scott A. Snell, Robert Konopaske 9781259927645, 9781259546945
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