Pearson Education 2005



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MANAGEMENT AND ORGANISATIONAL BEHAVIOUR 7E

Mullins

Pearson Education 2005




Case Title

Source, Number, Length, Teaching Note

Geographical and Industry Setting, Company Size, Timeframe

Case Decision Issue

Chapter 2: The Nature of Organisational Behaviour

Management by Whose Objectives? (HBR Classic)

HBR Article Reprint #

R0301H 9p



Organizational Behaviour and Leadership

In this 1970 classic HBR article, Harry Levinson shares practical insights into the mysteries of motivation and takes a fresh look at the use and abuse of the most powerful tools for inspiring and guiding complex organizations. He argues that to motivate people successfully, management must focus on the question, "How do we meet both individual and organizational requirements?" When we make assumptions about individual motivations and increase pressure based on them, we ignore the fact that people work to meet their own psychological needs. Commitment must derive from the individual's wishes to support the organization's goals. Yet, the individual's desires are entirely absent from most performance measurement systems; managers assume that these desires are perfectly aligned with corporate goals and that if they're not, the individual should move on. Self-motivation occurs when individual needs and organizational requirements converge. Successful management systems begin with the employee's objectives. The manager's task is to understand the employee's needs and then, with the employee, assess how well the organization can meet them.

GE's Two-Decade Transformation: Jack Welch's Leadership

HBSP

# 9-399-150



24p

United States, Global; industrial conglomerate; $100 billion revenues; 293,000 employees; 1981-1998

GE is faced with Welch's impending retirement and the question on many minds is whether anyone can sustain the blistering pace of change and growth characteristic of the Welch era. After briefly describing GE's heritage and Welch's transformation of the company's business portfolio of the 1980s, the case chronicles Welch's revitalization initiatives through the late 1980s and 1990s. It focuses on six of Welch's major change programs: The "Software" Initiatives, Globalization, Redefining Leadership, Stretch Objectives, Service Business Development, and Six Sigma Quality. Teaching Purpose: Can be used to develop multiple lessons, including corporate strategy development, transformational change, management and leadership, and corporate renewal.

Southwest Airlines: Using Human Resources for Competitive Advantage (A)

Case HR1A 24p


United States; airlines; $2.2 billion revenues; 12,000 employees; 1994

In 1994 both United Airlines and Continental Airlines launched low-cost airlines-within-an-airline to compete with Southwest Airlines. From 1991 until 1993 Southwest had increased its market share of the critical West Coast market from 26% to 45%. This case considers how Southwest had developed a sustainable competitive advantage and emphasizes the role of human resources as a lever for the successful implementation of strategy. Asks whether competitors can successfully imitate the Southwest approach.

Southwest Airlines: Using Human Resources for Competitive Advantage (B)

Case # HR1B 7p


United States; airlines; $2.2 billion revenues; 12,000 employees; 1994

During a summer executive program for human resource executives, the (A) case was assigned. After reading the case, a study group of four executives decided that the description in the (A) case was too positive and could not be accurate. To test this, the four conducted an impromptu field study of the Southwest station in San Jose. These executives interviewed six employees on duty. They reported their findings during the case discussion the following day. This case is based on that report.

Southwest Airlines: Using Human Resources for Competitive Advantage (A) and (B), Teaching Note

Teaching Note # HR1T 3p


United States; airlines; $2.2 billion revenues; 12,000 employees; 1994




Understanding “People” People

HBR Article Reprint #R0406E 9p


Human resources management

Nearly all areas of business--not just sales and human resources--call for interpersonal savvy. Relational know-how comprises a greater variety of aptitudes than many executives think. Some people can "talk a dog off a meat truck," as the saying goes. Others are great at resolving interpersonal conflicts. Some have a knack for translating high-level concepts for the masses. And others thrive when they're managing a team. Because people do their best work when it most closely matches their interests, the authors contend, managers can increase productivity by taking into account employees' relational interests and skills when making personnel choices and project assignments. After analyzing the psychological tests of more than 7,000 business professionals, the authors identified four dimensions of relational work: influence, interpersonal facilitation, relational creativity, and team leadership. This article explains each one and offers practical advice to managers--how to build a well-balanced team, for instance, and how to gauge the relational skills of potential employees during interviews. Understanding these four dimensions will help you get optimal performance from your employees, appropriately reward their work, and assist them in setting career goals. It will also help you make better choices when it comes to your own career development. To get started, try the authors' free online assessment tool, which measures both your orientation toward relational work in general and your interest level in each of its four dimensions.

Chapter 3: Approaches to organisation and management


Is Management Still a Science?

HBR Reprint Article

# 92603 8p



Negotiations

Frederick Taylor's traditional scientific approach to management promised to provide managers with the capacity to predict and control the behavior of the complex organizations they led. But the world most managers now inhabit often appears to be unpredictable and even uncontrollable. In the face of this more volatile business environment, the old-style mechanisms of "scientific management" seem positively counterproductive. Just as managers have become more preoccupied with the volatility of the business environment, scientists have also become preoccupied with the inherent volatility--the "chaos" and "complexity"--of nature. They are developing new rules for complex behavior in physical systems that have intriguing parallels to the kind of organizational behaviors today's companies are trying to encourage.

Why Hard-Nosed Executives Should Care About Management Theory

HBR Article Reprint

# R0309D


7p

General management

Theory often gets a bum rap among managers because it's associated with the word "theoretical," which connotes "impractical." But it shouldn't. Because experience is solely about the past, solid theories are the only way managers can plan future actions with any degree of confidence. The key word here is "solid." Gravity is a solid theory. As such, it lets us predict that if we step off a cliff we will fall, without actually having to do so. But business literature is replete with theories that don't seem to work in practice or actually contradict each other. How can a manager tell a good business theory from a bad one? The first step is to understand how good theories are built. They develop in stages: gathering data, organizing it into categories, highlighting significant differences, then making generalizations explaining what causes what, under which circumstances. For instance, professor Ananth Raman and his colleagues collected data showing that bar code-scanning systems generated notoriously inaccurate inventory records. These observations led them to classify the types of errors the scanning systems produced and the types of shops in which those errors most often occurred. Recently, some of Raman's doctoral students worked as clerks to see exactly what kinds of behavior cause the errors. From this foundation, a solid theory predicting under which circumstances bar code systems work and don't work is beginning to emerge. Once we forgo one-size-fits-all explanations and insist that a theory describes the circumstances under which it does and doesn't work, we can bring predictable success to the world of management.

Spin-Out Management: Theory and Practice

Business Horizons Article # BH088 10p

Organizational behaviour and leadership

The structure of a firm plays a key role in building an innovative and market-driven organization. Due to failures in the structure of companies, growth opportunities are sometimes not fully realized. Spin-out management is a process by which a new or existing part of the organization is diversified from the parent company. The goal is to develop independently related activities that enhance the firm's innovative capabilities while profiting at the same time from the assets of the parent company, thereby improving the staying power of both.












Chapter 4: The Nature of Organisations


The Ritz-Carlton Hotel Co.

HBSP

#9-601-163



31p

Teaching Notes #9-602-113



Washington, DC; hospitality; $1.5 billion revenues; 18,000 employees; 2000


In just seven days, The Ritz-Carlton transforms newly hired employees into "Ladies and Gentlemen Serving Ladies and Gentlemen." The case details a new hotel launch, focusing on the unique blend of leadership, quality processes, and values of self-respect and dignity, to create award-winning service. Teaching Purpose: Allows students to examine innovation and improvement in a service industry. Raises questions of when and how to innovate in a successful service operating system and the challenges of innovation for a brand built on customer experience. Teaching points include the role of leadership and values in creating a culture of service and the need to manage the tension between standardized quality procedures and the cultivation of empowered employees who can customize each interaction to meet the needs of their customers.

The People Who Make Organizations Go--or Stop

HBR Article Reprint #0206G 8p

Organizational behaviour and analysis

Managers invariably use their personal contacts when they need to, say, meet an impossible deadline or learn the truth about a new boss. Increasingly, it's through these informal networks--not just through traditional organizational hierarchies--that information is found and work gets done. But to many senior executives, informal networks are unobservable and ungovernable--and, therefore, not amenable to the tools of management. As a result, executives tend to work around informal networks or, worse, try to ignore them. When they do acknowledge the networks' existence, executives fall back on intuition--scarcely a dependable tool--to guide them in nurturing this social capital. It doesn't have to be that way. It is entirely possible to develop and manage informal networks systematically, say management experts Cross and Prusak. Specifically, senior executives need to focus their attention on four key role-players in informal networks: Central connectors link most employees in an informal network with one another; they provide the critical information or expertise that the entire network draws on to get work done. Boundary spanners connect an informal network with other parts of the company or with similar networks in other organizations. Information brokers link different subgroups in an informal network; if they didn't, the network would splinter into smaller, less effective segments. And finally, there are peripheral specialists, who anyone in an informal network can turn to for specialized expertise but who work apart from most people in the network. The authors describe the four roles in detail, discuss the use of a well-established tool called social network analysis for determining who these role-players are in the network, and suggest ways that executives can transform ineffective informal networks into productive ones.

Mary Kay Cosmetics Inc.

HBSP

#9-481-126 13p



Texas; cosmetics; $100 million sales per year; 1963-1980

Introduces the student to Mary Kay Cosmetics, Inc., its business, its strategy, and its organization. Provides the necessary background for understanding the contributions of Mary Kay Ash, the company's founder and chairman.

Chapter 5: Organisational Goals, Strategy and Responsibilities

Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive

HBSP

#9-392-025

22p


Burlington, VT; ice cream; mid-size; $58.5 million 1989 sales; 330 employees; 1991

Ben & Jerry's is an anti-establishment, values-driven company that has become a successful venture. The dominant founder, Ben Cohen, is not an effective manager, but he brings creative marketing and product skills that have been important to the company's success. He also is controlling shareholder and the force behind the company's socially-minded culture. One of the many policies that have reflected Ben's values but which has created difficulty in managing the organization is the 5 to 1 compensation differential between the top and the bottom of the organization. Up to mid 1990, the company was operating in an explosive growth business with relatively weak competitors; this has changed by the time of the case in September 1990. The case opens as Chuck Lacy is taking over as president. He needs to decide what to do about the 5 to 1 rule and the related issues of Ben's role, and the value of the company's counterculture style. Students must consider the difficulty and importance of the general manager's responsibility in reconciling company values with commercial imperatives and to consider the effect of compensation policy on morale and organizational effectiveness.

Jan Carlzon: CEO at SAS (A)

HBSP

# 9-392-149

16p


Sweden/Global; airline; large; $4 billion sales; 20,000 employees; 1980-1990

Describes Jan Carlzon's actions on assuming the CEO's responsibility at SAS in a time of financial and organizational difficulty. After tracing Carlzon's development as a manager, it focuses on the way in which he developed, then communicated a clear and motivating strategic mission to become "the world's best businessman's airline." After a spectacular turnaround, organizational problems re-emerge, and the case concludes with Carlzon wondering if his "second wave" can provide the same impetus that he gained on his first wave. Highlights the power of a clear and well-communicated strategic mission (strategic intent), but also explores problems and limits that can arise. Specifically, focuses on the common problem of motivating middle managers who often feel disenfranchised by front line empowerment.

What’s a Business For?

HBR Article Reprint # R0212C

6p


Social enterprise & ethics

In the wake of the recent corporate scandals, it's time to reconsider the assumptions underlying American-style stock-market capitalism. That heady doctrine--in which the market is king, success is measured in terms of shareholder value, and profits are an end in themselves--enraptured America for a generation, spread to Britain during the 1980s, and recently began to gain acceptance in Continental Europe. But now, many wonder whether the American model is corrupt. The American scandals are not just a matter of dubious personal ethics or of rogue companies fudging the odd billion. And the cure for the problems will not come solely from tougher regulations. We must also ask more fundamental questions: Whom and what is a business for? And are traditional ownership and governance structures suited to the knowledge economy? According to corporate law, a company's financiers are its owners, and employees are treated as property and recorded as costs. But whereas that might have been true in the early days of industry, it does not reflect today's reality. Now a company's assets are increasingly found in the employees who contribute their time and talents rather than in the stockholders who temporarily contribute their money. The language and measures of business must be reversed. In a knowledge economy, a good business is a community with a purpose, not a piece of property.

Corruption in International Business (A)

HBSP

# 9-701-128

10p


Business and government


Explores various aspects of corruption in international business. This case is organized in two sections. The first section provides a broad discussion of the ethical, business, and legal aspects of corruption. The second section provides a series of "caselets" that are designed to promote discussion of how students would act in particular situations, as well as the potential costs and benefits of these actions. Teaching Purpose: To introduce students to the issues surrounding corruption in international business.

Corruption in International Business (B)

HBSP

# 9-701-129

10p


Business and government

Focuses on efforts to combat corruption. Approaches include international laws, international agreements, efforts by international development organizations, and private efforts by firms and non-governmental organizations. Teaching Purpose: To introduce students to the issues surrounding corruption in international business.

Dawn Riley at America True (A)

HBSP

# 9-401-006

17p


San Francisco, CA; sports; start-up; 100 employees; 1999-2000

Dawn Riley is the CEO/Captain of America True, the first coed syndicate to race for the America's Cup. Over three years, based on her vision for America True, she built the syndicate from scratch, bringing on investors and sponsors, designing and building a boat, and hiring a sailing crew to race it. In June 1999, Riley must decide how to handle the San Francisco office now that America True's base of operations is moving to Auckland, New Zealand, where racing will begin in four months. She is facing pressure to phase out the office to cut down on costs, but Riley believes that the people in San Francisco and the work they are doing are key to her vision for America True. She must weigh the tension between immediate pressures to win and the longer-term sustainability of her vision. Teaching Purpose: To demonstrate the challenges of leading a start-up: the importance of communicating a vision, aligning people around that vision, and executing on it. To explore issues of gender and power.

Chapter 6: The Nature of Management


The Ritz-Carlton Hotel Co.

HBSP

#9-601-163

31p

Teaching Notes #9-602-113



Washington, DC; hospitality; $1.5 billion revenues; 18,000 employees; 2000


In just seven days, The Ritz-Carlton transforms newly hired employees into "Ladies and Gentlemen Serving Ladies and Gentlemen." The case details a new hotel launch, focusing on the unique blend of leadership, quality processes, and values of self-respect and dignity, to create award-winning service. Teaching Purpose: Allows students to examine innovation and improvement in a service industry. Raises questions of when and how to innovate in a successful service operating system and the challenges of innovation for a brand built on customer experience. Teaching points include the role of leadership and values in creating a culture of service and the need to manage the tension between standardized quality procedures and the cultivation of empowered employees who can customize each interaction to meet the needs of their customers.

Cambridge Consulting Group: Bob Anderson

HBSP

# 9-496-023

5p


Boston, MA; consulting; $85 million revenues

Describes the situation facing the head of a rapidly growing industry-focused group within a consulting company. Highlights the dilemmas of being a "producing manager" (i.e., a professional who has both individual production as well as management responsibilities). Issues raised include: delegation, developing subordinates, developing an agenda, and building an organization. Teaching Purpose: Demonstrates dilemmas of the producing manager's role.

A Letter to the Chief Executive

HBR Article Reprint #R0210G

6p


Organizational behaviour and leadership

Beyond the recent accounting scandals, something is wrong with the way most companies are managed today. That's the message of this fictional letter from a board member to a CEO, written by Joseph Fuller, CEO of the strategy consulting firm Monitor Group. The letter highlights the challenges and complexities of running a business in today's uncertain environment. The letter addresses a single CEO and company, yet it is intended to speak to executives and boards everywhere: "It wasn't the recession that caused us to make 3 acquisitions in 2 years at very, very high prices; the need to fuel [unreasonable] growth did. Nor was it the recession that caused us to expand our capacity in anticipation of gaining market share; rather, it was our own overly optimistic sales forecasts that led us to that decision. Where did those forecasts originate? From line managers trying to fulfill profit goals that we created after meeting with the analysts. The root cause of many of the problems that became apparent in the last 24 months lies not with the economy, not with September 11, and not with the dot-com bubble. Rather, it lies with that willingness to be led by outside forces--indeed, our own lack of conviction about setting a course." Restoring sound, strategic decision making--thinking that looks beyond tomorrow's analyst reports--will go a long way toward keeping those outside forces at bay, according to Fuller.


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