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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 Chapter 2: The Nature of Organisational Behaviour Management by HBR Article Organizational Behaviour Whose Reprint # and Leadership Objectives? R0301H 9p (HBR Classic) GE's TwoDecade Transformation: Jack Welch's Leadership HBSP # 9-399-150 24p United States, Global; industrial conglomerate; $100 billion revenues; 293,000 employees; 19811998 Case Decision Issue 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. Selfmotivation 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 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 Southwest Airlines: Using Human Resources for Competitive Advantage (A) Case HR1A 24p United States; airlines; $2.2 billion revenues; 12,000 employees; 1994 Southwest Airlines: Using Human Resources for Competitive Advantage (B) Case # HR1B 7p United States; airlines; $2.2 billion revenues; 12,000 employees; 1994 Southwest Airlines: Using Human Resources for Competitive Advantage (A) and (B), Teaching Note Understanding “People” People Teaching Note # HR1T 3p United States; airlines; $2.2 billion revenues; 12,000 employees; 1994 HBR Article Reprint #R0406E 9p Human resources management used to develop multiple lessons, including corporate strategy development, transformational change, management and leadership, and corporate renewal. In 1994 both United Airlines and Continental Airlines launched lowcost 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. 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. 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 wellbalanced 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 HBR Reprint Negotiations Still a Science? Article # 92603 8p Why HardNosed Executives Should Care About Management Theory HBR Article Reprint # R0309D 7p General management 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. 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 Spin-Out Management: Theory and Practice Business Horizons Article # BH088 10p Organizational behaviour and leadership Chapter 4: The Nature of Organisations The Ritz-Carlton HBSP Washington, DC; Hotel Co. #9-601-163 hospitality; $1.5 billion 31p revenues; 18,000 Teaching Notes employees; 2000 #9-602-113 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 onesize-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. 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. In just seven days, The RitzCarlton 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 selfrespect 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 The People Who Make Organizations Go--or Stop HBR Article Reprint #0206G 8p Organizational behaviour and analysis Mary Kay HBSP Texas; cosmetics; $100 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. 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 roleplayers are in the network, and suggest ways that executives can transform ineffective informal networks into productive ones. Introduces the student to Mary Cosmetics Inc. #9-481-126 13p million sales per year; 1963-1980 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 HBSP Burlington, VT; ice Ben & Jerry's is an antiHomemade Ice #9-392-025 cream; mid-size; $58.5 establishment, values-driven Cream, Inc.: 22p million 1989 sales; 330 company that has become a Keeping the employees; 1991 successful venture. The dominant Mission(s) Alive 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: HBSP Sweden/Global; Describes Jan Carlzon's actions on CEO at SAS (A) # 9-392-149 airline; large; $4 assuming the CEO's responsibility 16p billion sales; at SAS in a time of financial and 20,000 employees; organizational difficulty. After 1980-1990 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 reemerge, 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 wellcommunicated 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 What’s a Business For? HBR Article Reprint # R0212C 6p Social enterprise & ethics Corruption in International Business (A) HBSP # 9-701-128 10p Business and government Corruption in International Business (B) HBSP # 9-701-129 10p Business and government line empowerment. In the wake of the recent corporate scandals, it's time to reconsider the assumptions underlying American-style stockmarket 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. 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. 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 Dawn Riley at America True (A) HBSP # 9-401-006 17p San Francisco, CA; sports; start-up; 100 employees; 1999-2000 Chapter 6: The Nature of Management The Ritz-Carlton HBSP Washington, DC; Hotel Co. #9-601-163 hospitality; $1.5 billion 31p revenues; 18,000 Teaching Notes employees; 2000 #9-602-113 Cambridge Consulting Group: Bob Anderson HBSP # 9-496-023 5p Boston, MA; consulting; $85 million revenues organizations. Teaching Purpose: To introduce students to the issues surrounding corruption in international business. 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. In just seven days, The RitzCarlton 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 selfrespect 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. 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 A Letter to the Chief Executive HBR Article Reprint #R0210G 6p Organizational behaviour and leadership Jeanne Lewis at Staples, Inc. (A) (Abridged) HBSP # 9-400-065 14p Boston, MA; office supplies; $5 billion revenues; 30,000 employees; 1997 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. 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. Jeanne Lewis, after six years with Staples, Inc., is promoted to senior vice president of marketing. She is to work for fifteen months alongside her predecessor, a legacy in the organization, "learning the ropes" before he moves on. This case is set nine months after she begins working with the marketing department. At this time, Staples has just emerged from a period of prolonged litigation around an FTC antitrust suit challenging Staples' attempted merger with Office Depot. Post-merger, Lewis must determine how the marketing department can most effectively Jeanne Lewis at Staples, Inc. (B) Bill Gates and the Management of Microsoft Managing Xerox’s Multinational Development Center HBSP # 9-499-042 4p HBSP # 9-392-019 19p Boston, MA; office supplies; $5 billion revenues; 30,000 employees; 1997 United States; computer software; large; $1.8 billion revenues; 1991 HBSP #9-490-029 20p Rochester, NY; copiers; Fortune 500; 40 employees Chapter 7: Managerial Behaviour and Effectiveness JetBlue HBSP New York, NY; airlines; Airways: # 9-801-354 start-up; 950 employees; Starting from 20p 2000 Scratch Teaching Notes # 9-801-386 and efficiently help the company maintain its competitive edge in an increasingly competitive and complex market. Looks at the challenges a middle manager faces "taking charge" and managing change in a revitalization situation in which a more evolutionary approach is appropriate. Teaching Purpose: To illustrate the challenges of managing change in a revitalization (as opposed to turnaround) situation in which a more evolutionary approach is appropriate. To explore the challenges of managing change as a middle manager. To manage the network of relationships. To highlight the challenges of the "taking charge" process. Supplements the (A) case. In July 1991, Microsoft has achieved record growth and profitability in the PC software industry. The case focuses on Microsoft's founder and CEO, Bill Gates, and his top management team, as they seek to retain the innovation and spirit of a small company in a rapidly growing and changing environment. Specific issues include the management of organizational complexity, cultural change, CEO and COO interaction, compensation, and leadership. Describes a manager's role in developing a staff group responsible for enhancing the efficiency of Xerox's worldwide logistics and inventory management systems. Illustrates a range of management strategies for upward and lateral influence in a complex organizational context, as well as the use of a number of innovative human resource management techniques. If used with John A. Clendenin it allows for the discussion of career development issues. JetBlue Airways shows how an entrepreneurial venture can use human resource management, specifically a values-centered approach to managing people, as a source of competitive advantage. The major challenge faced by Ann Rhoades is to grow this people-centered organization at a rapid rate, while retaining high standards for employee selection and a small company culture. Teaching Purpose: To consider the role of human resource management, leadership, and values in a start-up venture, and to address the tension Microsoft’s Vega Project: Developing People and Products HBSP # 9-300-004 19p Redmond, WA; computer software; $20 billion revenues; 31,000 employees; 1975-1998 Mark Twain Bancshares Inc HBSP # 9-385-178 18p St. Louis, MO; banking; $750 million assets; 1984 The FailureTolerant Leader HBR Article Reprint # R0208D 6p Organizational behaviour and leadership between a strong organizational culture and rapid growth. Describes Microsoft's human resource philosophies and policies and illustrates how they work in practice to provide the company with a major source of competitive advantage. Summarizes the evolution of Microsoft's human resource philosophies and policies. Describes employee development, motivation, and retention efforts in one of Microsoft's product groups. Focuses on Matt MacLellan, a 26-year-old, 5-year Microsoft veteran, particularly on his careful development as a project manager under Jim Kaplan, his boss and mentor. Dissatisfied with his project management role, MacLellan decides to become a developer despite the fact that he had never written code professionally. Kaplan is faced with a difficult decision of whether to support his protege's radical career shift, and how to do it not only to MacLellan's satisfaction but also in the organization's best interest. Teaching Purpose: To illustrate the role of senior management as developer and coach of scarce human assets and the role of human resource policy in supporting an organization's development of competitive advantage. (A decision-oriented implementation case). Describes the history, management, and organization of an extremely successful bank holding company. The company has had a very charismatic chairman, has made MBAs bank presidents at very early ages, and has a long record of innovation. Now deregulation and a coming change of leadership may threaten the "system" that has made the bank so successful. The teaching objectives are to display the advantages and drawbacks of management based on a strong personality and strong values in the face of major market changes. "The fastest way to succeed," IBM's Thomas Watson, Sr., once said, "is to double your failure rate." In recent years, more and more executives have embraced Watson's point of view, coming to understand what innovators have always known: Failure is a prerequisite to invention. Although companies may grasp the value of making mistakes at the level of corporate practices, they have a harder time accepting the idea at the personal level. In this article, psychologist and former Harvard The Chattanooga Ice Cream Division HBSP # 9-498-001 11p United States; food products; $150 million revenues; 750 employees; 1996 Chapter 8: The Nature of Leadership Meg Whitman at HBSP San Jose, CA; Internet; eBay Inc # 9-401-024 1999 32p Teaching Notes # 9-400-047 Crucibles of Leadership HBR Article # 0209B 7p Business School professor Richard Farson and co-author Ralph Keyes discuss how companies can reduce the fear of miscues. What's crucial is the presence of failure-tolerant leaders--executives who, through their words and actions, help employees overcome their anxieties about making mistakes and, in the process, create a culture of intelligent risk-taking that leads to sustained innovation. Drawing from their research in business, politics, sports, and science, the authors identify common practices among failuretolerant leaders. These leaders break down the social and bureaucratic barriers that separate them from their followers. They engage at a personal level with the people they lead. They take a nonjudgmental, analytical posture as they interact with staff. They openly admit their own mistakes. And they try to root out the destructive competitiveness built into most organizations. Above all else, failure-tolerant leaders push people to see beyond traditional definitions of success and failure. They know that as long as a person views failure as the opposite of success, rather than its complement, he or she will never be able to take the risks necessary for innovation. Senior functional officers (marketing, manufacturing, research & development, control, and human resources) clash over alternative ideas for turning around a business in decline. The general manager is faced not only with choosing between competing ideas, but also managing conflict and determining whether his consensus-oriented style is appropriate to the needs of the situation. Teaching Purpose: To introduce students to issues and dilemmas of leadership of teams, especially cross-functional teams operating under pressure for results. Meg Whitman takes over as CEO of eBay from the founder. She must figure out how to lead the company through a stage of phenomenal growth without compromising eBay's unique external customer culture and internal culture--its key success factors. A rewritten version of an earlier case. What makes a great leader? Why do some people appear to know instinctively how to inspire employees--bringing out their confidence, loyalty, and Wolfgang Keller at KonigsbrauHellas A.E HBSP # 9-498-045 18p Europe; brewery; mid-size; $100 million sales Taran Swan at Nickelodeon Latin America (A) HBSP # 9-400-036 25p Teaching Notes # 9-400-037 5p Miami, FL; cable television; 1998 Why Should Anyone be Led by You? HBR Article # R00506 8p dedication--whereas others flounder again and again? No simple formula can explain how great leaders come to be, but Bennis and Thomas believe it has something to do with the ways people handle adversity. The authors' recent research suggests that one of the most reliable indicators and predictors of true leadership is the ability to learn from even the most negative experiences. In interviewing more than 40 leaders in business and the public sector over the past 3 years, the authors discovered that all of them--young and old alike-had endured intense, often traumatic, experiences that transformed them and became the source of their distinctive leadership abilities. Bennis and Thomas call these shaping experiences "crucibles," after the vessels medieval alchemists used in their attempts to turn base metals into gold. For the interviewees, their crucibles were the points at which they were forced to question who they were and what was important to them. These experiences made them stronger and more confident and changed their sense of purpose in some fundamental way. Raises issues concerning performance evaluation, performance appraisal, managing ineffective performance, and conflicts in management style. A rewritten version of an earlier case. Eighteen months after launching Nickelodeon Latin America, general manager Taran Swan must leave the company's Miami headquarters for her New York home because of complications with her pregnancy. Unable to travel for at least the next six months, Swan must decide how she will continue to run the channel from New York. Should she put an interim acting head in place, and if so, who among her team should it be? What adjustments will she need to make in her leadership style and working relationships with her team? The case describes the channel's launch and first 18 months on the air, focusing on how Swan puts together her team and crafts the company's culture. We all know that leaders need vision and energy, but after an exhaustive review of the most influential theories on leadership-as well as workshops with thousands of leaders and aspiring leaders--the authors learned that What Makes a Leader? HBR Classic Article # R0401H 10p Chapter 9: Individual Differences Management of HBR Differences Article # 60612 9p great leaders also share four unexpected qualities: 1) They selectively reveal their weaknesses; 2) They rely heavily on intuition to gauge the appropriate timing and course of their actions; 3) They manage employees with "tough empathy"; and 4) They capitalize on their differences. All four qualities are necessary for inspirational leadership, but they cannot be used mechanically; they must be mixed and matched to meet the demands of particular situations. Most important, however, is that the qualities encourage authenticity among leaders. To be a true leader, the authors advise, "Be yourself--more--with skill." When asked to define the ideal leader, many would emphasize traits such as intelligence, toughness, determination, and vision--the qualities traditionally associated with leadership. Often left off the list are softer, more personal qualities--but they are also essential. Although a certain degree of analytical and technical skill is a minimum requirement for success, studies indicate that emotional intelligence may be the key attribute that distinguishes outstanding performers from those who are merely adequate. Psychologist and author Daniel Goleman first brought the term "emotional intelligence" to a wide audience with his 1995 book of the same name, and Goleman first applied the concept to business with this 1998 classic HBR article. In his research at nearly 200 large, global companies, Goleman found that truly effective leaders are distinguished by a high degree of emotional intelligence. Without it, a person can have first-class training, an incisive mind, and an endless supply of good ideas, but he or she still won't be a great leader. The chief components of emotional intelligence--selfawareness, self-regulation, motivation, empathy, and social skill--can sound unbusinesslike, but Goleman, cochair of the Consortium for Research on Emotional Intelligence in Organizations, based at Rutgers University, found direct ties between emotional intelligence and measurable business results. Managers may most effectively approach the complex problems of individual differences by first assuming that the differences are neither good nor bad, and that no one right solution exists. Yvette Hyater – Adams and Terry Larsen at CoreState Financial Corp HBSP # 9-401-023 15p Philadelphia, PA; banking; 2,000 employees; 19931998 Bob Fifer HBSP # 9-495-013 11p Teaching Note # 9-498-063 United States; consulting Avon Products (A) and (B) HBSP # 9-301-059 22p HBSP #9–301-060 14p New York, NY; beauty products; $5 billion revenues; 33,900 employees; 1992-1998 Diagnostic questions the manager must ask concern: the nature of the difference; the underlying factors; and the stage to which the interpersonal difference has evolved. Available courses of action include: avoidance, repression, conflict, and problem solving. A systematic approach to the problem, which will result in a solution that will preserve corporate harmony and individual initiative, is the goal. Yvette Hyater-Adams, senior VP of CoreStates Bank, and CEO Terry Larsen reflect on their five-year mentor-protege relationship. They describe how building a relationship across both race and gender was challenging and ultimately highly rewarding. Their relationship develops in the context of a major culture change that Hyater-Adams and Larsen were leading the organization through. This case discusses the impact their relationship had on the organization and the change process. Explores the life and concerns of Bob Fifer, HBS class of 1979 and CEO of Kaiser Associates. Explores the many influences on Bob's development and his subsequent career choices. It is written as a biography with extensive quotes from interviews with Bob. He describes the role of his upbringing and Jewish ethnicity in the formation of his early selfconcept. Highlights the careerrelated choices he makes, including college at Harvard, attending business school, and entering consulting. After years of success and driven workaholic behavior, Bob experiences disillusionment and personal tragedy. Readers are able to examine the process of selfredirection that Bob engages in to arrive at their own conclusion about how successful and enduring it is likely to be. Teaching Purpose: Can be used as part of a career module in courses such as Introductory O.B., Career Development, Entrepreneurship, and Leadership. It is well-suited to teach concepts related to adult development, career-choice making, and entrepreneurial behavior. The general manager of Avon Mexico, Fernando Lezama, must decide whether to promote a woman to the position of vice president of sales. If appointed, the candidate would be the first female in all of Latin America to hold an executive position and one Julia Stasch, Business Enterprise Trust (A) HBSP # 9-993-015 5p # 9-993-013 Case Teaching Note #9-993-016 10p Chicago, IL; construction; 1988-1993 Chapter 10: The Nature of Learning Building a HBR Reprint Learning # 93402 Organization 14p Framing for CMR Article of the first women in Mexico to attain this level of responsibility. Lezama's all-male executive team has doubts about the candidate's readiness but Lezama is also cognizant of Avon's global vision which calls for the advancement of women at all levels of the organization. Earlier in the year, the Avon Mexico organization had completed an exercise called "appreciative inquiry" aimed at enhancing gender relations in the workforce. Teaching Purpose: To examine the cultural aspects of managing in the Mexican environment and to illustrate the use of "appreciative inquiry" as part of a cultural change process. A successful woman executive attempts to integrate women into the construction trade in Chicago. Julia Stasch rose from office assistant to president and chief operating officer of a major Chicago real estate firm, Stein & Co. This case describes her campaign to create expanded opportunities for women and minority-owned businesses as suppliers to construction projects, and for women and minority workers on construction sites. Discusses entrenched discrimination in a particular industry, and the creative change strategies implemented by one executive. Teaching Purpose: May be used in Human Resources, Organizational Behavior, Ethics, and Diversity courses to help students explore: 1) the design of affirmative action and diversity programs to address entrenched discrimination; 2) the role of business in encouraging diversity; 3) how one individual can create social change; and 4) strategies for increasing the acceptance of diversity of the workplace. Continuous improvement programs are proliferating as corporations seek to better themselves and gain an edge. Unfortunately, however, failed programs far outnumber successes, and improvement rates remain low. That's because most companies have failed to grasp a basic truth. Before people and companies can improve, they must first learn. And to do this, they need to look beyond rhetoric and high philosophy and focus on the fundamentals. Three critical issues must be addressed before a company can truly become a learning organization: meaning, management, and measurement. The decision to adopt a new Learning: Lessons in Successful Technology Implementation # CMR 247 23p Speeding up Team Learning HBR Article # R0109J 7p technology in the health care setting is merely the first step in an implementation journey. Whereas some new technologies are readily embraced by those who must use them, most are met with some resistance. In some cases, members of diverse groups--including administrators, clinicians, and technicians--must work together for a new technology to take hold effectively, becoming incorporated into routine practice in an organization. This article reports on a qualitative study of hospitals adopting a new technology for minimally invasive cardiac surgery that uncovered substantial differences in both approach and implementation success. Four case studies are presented to illustrate distinct, tacit frames held by the leaders of each implementation project and how these influenced the team learning process and, in turn, implementation success. Cardiac surgery is one of medicine's modern miracles. In an operating room no larger than many household kitchens, a patient is rendered functionally dead while a surgical team repairs or replaces damaged arteries or valves. Each operation requires incredible teamwork--a single error can have disastrous consequences. In other words, surgical teams are not all that different from the cross-functional teams that have become crucial to business success. The challenge of team management these days is not simply to execute existing processes efficiently. It's to implement new processes as quickly as possible. But adopting new technologies or new business processes is highly disruptive, regardless of the industry. The authors studied how surgical teams at 16 major medical centers implemented a difficult new procedure for performing cardiac surgery. The setting was ideal for rigorously focusing on how teams learn and why some learn faster than others. The authors found that the most successful teams had leaders who actively managed the groups' learning efforts. Teams that most successfully implemented the new technology shared three essential characteristics. They were designed for learning; their leaders framed the challenge so that team members were highly motivated to learn; and an environment of psychological safety fostered communication The Anxiety of Learning: An Interview with Edgar H Schein HBR Article # R0203H 7p Capitalising on Capabilities HBR Article # R0406J 8p and innovation. The finding that teams learn more quickly if they are explicitly managed for learning poses a challenge in many areas of business. Team leaders in business tend to be chosen more for their technical expertise than for their management skills. Team leaders need to become adept at creating learning environments, and senior managers need to look beyond technical competence and identify leaders who can motivate and manage teams of disparate specialists. Despite all of the time, money, and energy that executives pour into corporate change programs, the stark reality is that few companies ever succeed in genuinely reinventing themselves. That's because the people at those companies rarely master the art of transformational learning--that is, eagerly challenging deeply held assumptions about a company's processes and, in response, altering their thoughts and actions. Instead, most people just end up doing the same old things in superficially tweaked ways. Why is transformational learning so hard to achieve? HBR senior editor Diane Coutu explores this question with psychologist and MIT professor Edgar Schein, a worldrenowned expert on organizational development. In sharp contrast to the optimistic rhetoric that permeates the debate on corporate learning and change, Schein is cautious about what companies can and cannot accomplish. Corporate culture can change, he says, but this kind of learning takes time, and it isn't fun. In this article, he describes two basic types of anxiety-learning anxiety and survival anxiety--that drive radical relearning in organizations. Schein's theories spring from his early research on how American prisoners of war in Korea were brainwashed by their captors. Heavy socialization is back in style in U.S. corporations today, Schein says, even if no one is calling it that. By making the most of organizational capabilities-employees' collective skills and fields of expertise--you can dramatically improve your company's market value. Although there is no magic list of proficiencies that every organization needs to succeed, the authors identify 11 intangible assets that well-managed companies tend to have: talent, speed, shared mind-set and coherent brand identity, accountability, collaboration, learning, leadership, customer connectivity, strategic unity, innovation, and efficiency. Such companies typically excel in only three of these capabilities while maintaining industry parity in the other areas. Organizations that fall below the norm in any of the 11 are likely candidates for dysfunction and competitive disadvantage. To determine how your company fares in these categories (or others, if the generic list doesn't suit your needs), the authors explain how to conduct a "capabilities audit," describing in particular the experiences and findings of two companies that recently performed such audits. In addition to highlighting which intangible assets are most important given the organization's history and strategy, this exercise gauges how well your company delivers on its capabilities and guides you in developing an action plan for improvement. A capabilities audit can work for an entire organization, a business unit, or a region--indeed, for any part of a company that has a strategy to generate financial or customerrelated results. It enables executives to assess overall company strengths and weaknesses, senior leaders to define strategy, mid-level managers to execute strategy, and frontline leaders to achieve tactical results. Chapter 11: The Jensen Shoes: Lyndon Twitchell’s Story Jensen Shoes: Jane Kravitz’s Story Process of Perception HBSP United States; shoes; $65 # 9-395-121 million revenues; 4,500 8p employees; 1994 Teaching Note # 9-396-017 HBSP # 9-395-120 7p Teaching Note United States; shoes; $65 million revenues; 4,500 employees; 1994 Jane Kravitz (Caucasian female), strategic product manager, and Lyndon Twitchell (African American male), a member of her staff at Jensen Shoes, a successful producer and marketer of casual, athletic, and children's footwear, are assigned to new positions and to each other at the start of the story. Presents their very different points of view on their first couple of months working together. Can be taught in a variety of ways: with all students receiving both cases; half receiving one and half receiving the other; or a third of the class receiving both, one third receiving one, and one third receiving the other (as is appropriate). Should be used with Jensen Shoes: Jane Kravitz's Story. Jane Kravitz (Caucasian female), strategic product manager, and Lyndon Twitchell (African American male), a member of her 9-396-017 Intel in China Ivey/UWO # 99C007 11p Teaching Note # 899C07 China; semiconductors; small; 1998 Chapter 12: Work Motivation and Rewards Mary Kay HBSP Dallas, TX; cosmetics; midCosmetics Inc: # 9-190-103 size; $400 million sales; Sales Force 16p 1989 Incentives Teaching Notes # 9-191-198 10p Case # 9-190-122 2p How to Motivate Your Problem People HBR Reprint # 0301D 8p staff at Jensen Shoes, a successful producer and marketer of casual, athletic, and children's footwear, are assigned to new positions and to each other at the start of the story. Presents their very different points of view on their first couple of months working together. Can be taught in a variety of ways: with all students receiving both cases; half receiving one and half receiving the other; or a third of the class receiving both, one third receiving one, and one third receiving the other (as is appropriate). Should be used with Jenson Shoes: Lyndon Twitchell's Story. Intel PRC was a division of Intel Corp., a U.S. $20 billion semiconductor manufacturer. A newly appointed division head makes a decision that an employee responds to emotionally, with a deep resentment, creating the potential for conflict within the department. The incident forces the manager to examine whether there are deeper organizational or communication problems he needs to consider. Cross-cultural issues come into play given that the manager, although originally from China, was educated and gathered extensive experience in the west and was thus considered an expatriate by his employees. The case examines the effect of organizational culture on an employee's behavior. Describes the incentive system by which Mary Kay Cosmetics motivates the sales force of 200,000 independent agents who comprise the firm's only distribution channel. Illustrates the powerful effect on sales-force behavior that results when creative types of employee recognition are combined with financial incentives. Focuses on the challenges that managers face when they try to reduce program costs by modifying the VIP automobile program that awards the use of pink Cadillacs and other cars to successful sales agents. A detailed description of the parameters and formulas that drive the recognition and reward programs is provided. Managers who motivate with incentives and the power of their vision and passion succeed only in energizing employees who want to be motivated. So how do you motivate intractable employees-the ones who never do what you want and also take up all your One More Time: How Do you Motivate Employees? HBR Reprint #R0301F 9p HCM Beverage Co Ivey School/UWO # 98C003 17p Vietnam; food and kindred products; mid-size; 1997 time? According to Nigel Nicholson, you can't: Individuals must motivate themselves. Instead of pushing solutions on problem employees, the manager should pull solutions out of them by creating circumstances in which the employees can channel their motivation toward achievable goals. That means addressing any obstacles--possibly even the manager's own demotivating style--that might be hindering the employees. Using detailed examples, Nicholson walks the reader through his method, pointing out potential pitfalls along the way. First, the manager creates a rich picture of the problem person. Second, the manager exercises flexibility and reframes goals so that the employee can meet them. Third, in a carefully staged, face-to-face conversation, the manager meets with the problem employee on neutral ground. It's a manager's perennial question: "How do I get an employee to do what I want?" The psychology of motivation is very complex, but the surest way of getting someone to do something is to deliver a kick in the pants-put bluntly, the KITA. Companies usually resort to positive KITAs, ranging from fringe benefits to employee counseling. But although a KITA might produce some change in behavior, it doesn't motivate. Frederick Herzberg, whose work influenced a generation of scholars and managers, likens motivation to an internal generator. An employee with an internal generator, he argues, needs no KITA. Achievement, recognition for achievement, the work itself, responsibility, and growth or advancement motivate people. The author cites research showing that those intrinsic factors are distinct from extrinsic, or KITA, elements that lead to job dissatisfaction. Jobs can be changed and enriched. Managers should focus on positions where people's attitudes are poor. The investment needed in industrial engineering is cost effective, and motivation will make a difference in performance. Mark Johnson, general manager of HCM Beverage Co., must decide what to do about the declining performance of Vietnam-based HCM Beverage. Employees seem unmotivated and lackadaisical about their work. These same workers blame the weather for the poor results. Figuring out the problem and solution is Johnson's major challenge. Chapter 13: The The Overhead Reduction Task Force Nature of Work HBSP # 9-400-026 7p Teaching Note # 9-400-027 17p Groups and Teams United States; household appliances; mid-size; 19771999 Brinkerhoff International (A) HBSP # 9-494-110 15p Case # 9-494-111 1p Teaching Note # 9-496-041 6p Alberta, Canada; oil drilling; $27 million revenues; 1993 The Chattanooga Ice Cream Division HBSP # 9-498-001 11p United States; food products; $150 million revenues; 750 employees; 1996 Technology for Teams Note # 9-196-008 10p A middle manager is about to meet with his boss to discuss her request that he head up a task force to determine how overhead can be reduced by 20%. He must decide what to address in that meeting and how the task force should be launched and led. The focus is on team leadership at four stages in a team's life cycle: 1) preparation, 2) initial meeting, 3) mid-course consultation, and 4) post-performance debriefing. A rewritten version of an earlier case. Presents a study of two oil rigs and their team relationships within a context of dissension in lower management ranks and a president who is trying to expand the business in a changing economy. Teaching Purpose: To show the importance of teamwork at the bottom of a high-skill, dangerous business. Senior functional officers (marketing, manufacturing, research & development, control, and human resources) clash over alternative ideas for turning around a business in decline. The general manager is faced not only with choosing between competing ideas, but also managing conflict and determining whether his consensus-oriented style is appropriate to the needs of the situation. Teaching Purpose: To introduce students to issues and dilemmas of leadership of teams, especially cross-functional teams operating under pressure for results. The importance of groups in organizations has long been recognized but, until recently, groups were always "tacked onto" organizations that were designed around individuals. It was not just the logic of classical organizational theory that perpetuated this focus on the individual; the entire entrepreneurial tradition of U.S. society and culture supported it. Recently, companies have begun to break down these traditional organizational and cultural barriers and to recognize teams as a formal unit of the organizational structure. While autonomous (or semi-autonomous) work teams have operated within manufacturing environments for several decades, more recently companies like General Electric, IBM, and Frito-Lay have attempted to create "empowered" work teams as the basic unit of organizational work throughout their organizations. As companies attempt to formally recognize the team as a structural unit of the organization, they are also forced to reevaluate organizational processes and structures that detract from effective group functioning. A growing number of companies are finding that technology can be an important tool for facilitating team processes. Chapter 14: Working in Groups and Teams Business Teams HBSP Wooster, OH; consumer at Rubbermaid # 9-897-165 products/plastics Inc 26p manufacturer; $2.3 billion revenues; 14,500 employees; 1996 Datavision (A) Speeding Up Team Learning HBSP # 9-495-046 Case 15p # 9-495-047 3p Case # 9-495-048 2p Teaching Note # 9-498-030 12p HBR Reprint # R0109J 7p Burlington, MA; computers; $3 million revenues; 500 employees; 1993 Rubbermaid, a consumer products company widely praised for its innovation, has instituted a company-wide experiment to stimulate innovation even further. The experiment consists of creating small cross-functional business teams within each division, with each team being responsible for the creation, management, and profitability of a particular product line. The staffing, reporting structure, and management of the business teams vary across divisions, and clear differences emerge in the performance of four highlighted teams. Teaching Purpose: To explore the possibility of using cross-functional teams within established firms to simulate entrepreneurial ventures and accelerate innovation. Specific topics include: options for staffing, structuring, and managing crossfunctional business teams; the difficulty of implementing crossfunctional teams in a company with a strong functional structure; the difficulty of balancing accountability and empowerment in "entrepreneurial" teams within established firms; and the impact of different management approaches on the functioning of business teams. Depicts a "team-building" intervention by an organizational consultant at a small computer company. Teaching Purpose: Should promote discussion surrounding such techniques. Cardiac surgery is one of medicine's modern miracles. In an operating room no larger than many household kitchens, a patient is rendered functionally dead while a surgical team repairs or replaces damaged arteries or valves. Each operation requires incredible teamwork--a single error can have disastrous consequences. In other words, surgical teams are not all that different from the cross-functional teams that have become crucial to business success. The challenge of team management these days is not simply to execute existing processes efficiently. It's to implement new processes as quickly as possible. But adopting new technologies or new business processes is highly disruptive, regardless of the industry. The authors studied how surgical teams at 16 major medical centers implemented a difficult new procedure for performing cardiac surgery. The setting was ideal for rigorously focusing on how teams learn and why some learn faster than others. The authors found that the most successful teams had leaders who actively managed the groups' learning efforts. Teams that most successfully implemented the new technology shared three essential characteristics. They were designed for learning; their leaders framed the challenge so that team members were highly motivated to learn; and an environment of psychological safety fostered communication and innovation. The finding that teams learn more quickly if they are explicitly managed for learning poses a challenge in many areas of business. Team leaders in business tend to be chosen more for their technical expertise than for their management skills. Team leaders need to become adept at creating learning environments, and senior managers need to look beyond technical competence and identify leaders who can motivate and manage teams of disparate specialists. Chapter 15: Organisation Structure and Design Polycom Inc: HBSP United States; Visualising # 9-601-073 telecommunications; $500 Culture 16p million revenues; 500 employees; 2000 Do you have a well-designed organisation? HBR Reprint # R0203K 7p Polycom is a rapidly growing maker of video conferencing and teleconferencing equipment. Management is attempting to use "natural work groups" as an organizing mechanism, and to build into the culture implicit rules that will cause desired behaviors to be self-policing. For most companies, organization design is neither a science nor an art; it's an oxymoron. Organizational structures evolve in fits and starts, shaped more by politics than by policies. Although most executives can sense when their organization designs are not working well, few take meaningful action, partly because they lack a Why Hierarchies Thrive HBR Article # R0303G 6p practical framework to guide them. The authors of this article provide just such a framework; they present nine tests that can be used either to evaluate an existing organization design or create a new one. Four "fit" tests offer an initial screen: The market advantage test asks whether a design directs sufficient management attention to the company's sources of competitive advantage; the parenting advantage test determines whether the design gives enough attention to the corporate-level activities that provide real value to the company; the people test shows whether the design reflects the employees' strengths; and the feasibility test looks at constraints that may impede implementation. Five "good design" tests can help a company refine its prospective design. The specialist cultures test ensures that there's sufficient insulation for units that need to be different from the prevailing culture; the difficult-links test determines whether a design offers solutions for potentially problematic unit-to-unit links; the redundant-hierarchy test asks whether the design has too many parent levels; the accountability test looks at whether every unit has suitable controls; and the flexibility test ensures that the design lets the company adapt to change. Once a design is altered, the tests should be repeated. Organizational decisions are inevitably complex, and tweaking one part of the design may produce unanticipated consequences elsewhere. Hardly anyone has a good word to say about hierarchies. They routinely transform motivated and loyal employees into disaffected Dilberts. Yet, the intensity with which we struggle against hierarchies only serves to highlight their durability. In this article, organizational behavior expert Harold J. Leavitt presents neither a defense of human hierarchies nor another attack on them. Instead, he offers a reality check, a reminder that hierarchy remains the basic structure of most, if not all, large, ongoing human organizations. That's because although they are often depicted as being out of date, hierarchies have proved to be extraordinarily adaptive. Over the past 50 years, for example, they have co-opted the three major managerial movements--human relations, analytic management, Trojan Technologies Inc: Organizational Structuring for Growth and Customer Service Field Case # 99M019 8p Canada; electric, gas, and sanitary services; small; 1998 Chapter 16: Patterns of Structure and Work Organisation Novartis HBSP Switzerland; Pharma: The # 9-101-030 pharmaceuticals; $21 billion Business Unit 21p revenues; 70,000 Model employees; 2000 Buck & Pulleyn’s Team Management HBSP # 9-497-007 9p Rochester, NY; advertising; small; $26 million revenues; 70 employees; 1996 and communities of practice. Hierarchies also persist because they deliver real practical and psychological value, and they fulfill our deep need for order and security. Despite the good they may do, however, hierarchies are inevitably authoritarian. A group of Trojan Technologies, Inc. employees grappled with the issue of how to structure the business to interact effectively with its customers and manage the company's dramatic growth. The London, Ontario manufacturer of ultraviolet water disinfecting systems believed that strong customer service was key to its recent and projected growth and had come to the realization that changes would have to be made to continue to achieve both simultaneously. The group hoped to develop a structure to address these issues. The executive vice president was to lead the development and implementation of the new structure. The transition to the new structure was to coincide with the new fiscal year. In June 2000, Novartis reorganized its pharmaceutical business to form global business units in oncology, transplantation, ophthalmology, and mature products. The remaining products (primary care products) were managed as before within global functions (R&D), marketing, etc.) The new organization created a matrix structure and new roles and responsibilities for heads of business functions, CEOs of new business units, and country managers operating in over 100 countries. Teaching Purpose: To explore the reasons for Novartis's reorganizing into the new matrix structure, the tensions and challenges the new structure creates, and the culture and accountability needed to make the new structure work. In 1993, the firm began to move from a traditional hierarchical structure to client-focused teams. The case describes the process and some consequences of this restructuring. Performance seems to be improving, but some employees preferred the structure certainty and client variety of the old days. How does management deal with these issues? Teaching Purpose: Team management has become very popular, but transitions from traditional structures to teams are not easy. The discussion will center on how USA TODAY: Pursuing the Network Strategy (A) HBSP # 9-402-010 18p Virginia; newspaper; $700 million revenues; 3,000 employees; 2000 Eli-Lilly – 1998 (B): Emerging Global Organization HBSP # 9-399-174 15p Global; pharmaceuticals; Fortune 500; $12 billion revenues; 10,000 employees; 1998 Chapter 17: Technology and Organisation Napster and Ivey/UWO Global; music; 2000 MP3: Redefining # 901M02 the Music 22p Industry Chaparral Steel: Rapid Product and Process Development HBSP # 9-692-018 17p Technology Integration: Turning Great Research into Great Products HBR Article # 97304 11p Texas; steel; 900 employees; 1983-1991 to deal with these issues. Describes the evolution of USA TODAY Online, the electronic version of the newspaper, within the organizational structure of the newspaper. Describes the tensions and issues that develop and the pressure from the Online division to be spun off. At the same time, CEO Tom Curley sees a greater strategic need for integration. Poses the question of what degree or type of strategic integration is required, what degree of organizational integration this implies, and how it can be achieved. Examines major issues faced by Eli Lilly as it evaluates the appropriateness of a focused matrix organization with extensive use of cross-functional teams. The music industry has changed dramatically as a result of technological and business innovations that have transformed how music is acquired, and how value is created and distributed. Napster, Inc. operated one of several Web sites that allowed Internet users free access to MP3 music files--which eventually led to lawsuits around issues of the protection of intellectual capital. These issues lead to the examination of the forces at play in the transformation of the music industry, the strategic alternatives for players in the industry and the legal context underpinning the strategic alternatives, with a particular focus on the protection of intellectual capital. One of the nation's foremost minimills' core competence is the rapid realization of technology into products. This case describes the development of a highly innovative casting technique and features the role of the company's culture in achieving its goals. The company exemplifies a learning organization. In many industries, superior technology integration--the approach used to choose and refine the technologies employed in a new product, process, or service--is the key to achieving superior R&D productivity and speed, and superior products. In this article, which is based on an ongoing study of R&D in various segments of the global computer industry, Marco Iansiti and Jonathan West contend that technology integration has become much more important-and challenging--for obvious reasons. A radical change in the Technology and Human Vulnerability Chapter 18: Job Donna Klein and Marriott International Inc (A) and (B) approach of U.S. companies to technology integration helps explain the resurgence of the U.S. electronics industry in the 1990s. But one size does not fit all. Indeed, the authors have found that an approach that works well in one country may not be the best for another. To be effective, an approach must suit the local culture and conditions. For most of the last 50 years, technology knew its place. It's very different today. Technology is not only ubiquitous but has become highly intrusive as well. On the Internet, people invent imaginary identities in virtual chat rooms. Children are growing up with interactive toy animals. If we want to be sure we'll like who we've become in 50 years, we need to take a closer look at the psychological effects of current and future technologies. The smartest people in technology have already started. Universities like MIT and Caltech have been pouring millions of dollars into researching what happens when technology and humanity meet. To learn more about this research, HBR senior editor Diane L. Coutu spoke with one of the field's most distinguished scholars--Sherry Turkle, MIT's Abby Rockefeller Mauze Professor in the Program in Science, Technology, and Society and the author of Life on the Screen, which explores how the Internet is changing the way we define ourselves. In a conversation with Coutu, Turkle discusses the psychological dynamics that can develop between people and their hightech toys, describes ways in which machines might substitute for managers, and explains how technology is redefining what it means to be human. She warns that relatively small differences in technology design can have disproportionate effects on how humans relate to technology, to one another, and to themselves. HBR Article # R0309B 7p Satisfaction and HBSP # 9-996-057 4p HBSP # 0-996-058 8p TN # 9-996-059 7p Work Performance Washington, DC; $8.9 billion revenues; 170,000 employees; 1994-1996 In the early 1990s, Donna Klein, Director of Work/Life programs for Marriott International, surveyed hotel and resort managers and found they increasingly were relied upon to help employees cope with the stresses of their personal lives. Immigration, child custody, spousal abuse-numerous personal issues were requiring up to 50% of managers' time and fueling extremely high turnover among the company's over 100,000 lower-wage MacTemps: Building Commitment in the Interim Workforce HBSP # 9-497-005 20p Nordstrom: Dissension in the Ranks? HBSP # 9-191-002 24p United States; staffing; $56 million revenues; 130 employees TN # 9-497-065 15p West Coast; retailing; 1989 HBSP # 9-192-027 2p TN # 9-692-085 12p SMA: MicroElectronic Products Division (A) HBSP # 9-400-034 19p Switzerland; electronics manufacturing; 1,200 employees; 1990 workers. While Marriott offered a traditional dependent care resource and referral service, Klein realized that this service was not particularly useful or appropriate for hourly workers. She understood that hourly employees needed help finding cost-effective ways to solve their personal problems and more oneon-one consultation to help them tap into their local resources. Shocked by the survey results, senior management asked Klein and her associates to devise a solution to address the problem. Teaching Purpose: Encourages discussion of work/life issues, particularly those specific to lower-wage employees. Allows students to think creatively about different approaches to real-life human resource dilemmas. MacTemps is a provider of temporary workers skilled in computer graphics and database management. Unlike many temporary agencies that treat temps as a commodity, MacTemps has attempted to build relationships with temps through offering benefits and training. This case explores the pros and cons of this strategy by presenting data on the underlying economics of the arrangement and the characteristics of the temp force. Teaching Purpose: To discuss the economics of contingent work arrangements, strategies for building relationships with workers/temps, strategies for staffing firms in highly competitive environments, and the changing social contract between people and organizations. In 1989, the performance measurement systems and compensation policies of Nordstrom Department Stores unexpectedly came under attack by employees, unions, and government regulators. The case describes the "sales-per-hour" monitoring and compensation system that many believed to be instrumental in Nordstrom's phenomenal success. Illustrates how rapid company growth, decentralized management, and unrelenting pressure to perform can distort performance measurement systems and lead to undesirable consequences. The Micro-Electronic Products Division of SMA has financial and organizational problems. Conflict and lack of coordination exist between functional groups. Employees do not have a sense of direction and morale is low. The Pull the Plug on Stress cause of these problems is found in a change in business environment followed by change in organization and management. A rewritten version of an earlier case. Stress is rampant, stress is growing, and stress hurts the bottom line. A 1999 study of 46,000 workers revealed that health care costs are 147% higher for those who are stressed or depressed, independent of other health issues. But what exactly is stress? It usually refers to our internal reaction to negative, threatening, or worrisome situations--a looming performance report, say, or interactions with a dismissive colleague. Accumulated over time, negative stress can depress you, burn you out, make you sick, or even kill you--because it's both an emotional and a physiological habit. Of course, many companies understand the negative impact of cumulative stress and offer programs to help employees counteract it. The problem is that employees in the greatest need of help often don't seek it. Since 1991, the authors have studied the physiological impact of stress on performance, at both the individual and organizational levels. Their goal largely has been to decode the underlying mechanics of stress. After working with more than 50,000 workers and managers in more than 100 organizations, the authors have found that learning to manage stress is easier than most people think. They have devised a scientifically based system of tools, techniques, and technologies that organizations can use to reduce employee stress and boost overall health and performance. HBR Article # R0307J 6p Chapter 19: Human Resource Management Compensation HBSP Long Island, NY; and # 9-800-290 semiconductors; $6 billion Performance 26p revenues; 6,000 Evaluation at employees; 1994-1998 Arrow Electronics The Firmwide 360 degree Performance Evaluation Process at Morgan Stanley Human Resources at Hewlett-Packard HBSP # 9-498-053 16p TN # 9-400-078 12p HBSP # 9-495-051 27p New York, NY; investment banking; $1 billion revenues; 2,000 employees; 1993-1995 California; high tech; large; $25 billion revenues; 90,000 employees; 1979- Describes a company's struggles in implementing a subjective performance rating system for its employees. In particular, it describes the difficulties faced by the CEO in getting managers to combat "ratings inflation"--that is, to produce numerical ratings that are both differentiated and "not too high." Describes Morgan Stanley's firmwide, 360-degree performance evaluation process. Evaluation forms are included as exhibits. Teaching Purpose: To introduce students to a 360-degree performance evaluation process. Provides an overview of the human resource policies and practices applied by Hewlett- (A) and (B) HBSP # 9-495-052 7p 1992 TN # 9-497-022 7p They’re Not Employees, They’re People HBR Article # R0202E 7p Verizon Communications Inc: Implementing a Human Resources Balanced Scorecard HBSP # 9-101-102 23p United States; telecommunications; $60 billion revenues; 260,000 employees; 1996-2000 Chapter 20: Resourcing the Organisation Jet Blue HBSP New York, NY; airlines; Airways: # 9-801-354 start-up; 950 employees; Starting from 20p 2000 Scratch Packard (HP). Discusses HP's reactions as an organization to changes in its business environment. As such, it is an opportunity to analyze HP's practices, and how they have been affected through the years in all four policy areas: stakeholder influence, flows, rewards, and work systems. In this essay, business thinker Peter Drucker examines the changing dynamics of the workforce--in particular, the need for organizations to take just as much care and responsibility when managing temporary and contract workers as they do with their traditional employees. Two fastgrowing trends are demanding that business leaders pay more attention to employee relations, Drucker says. First is the rise of the temporary, or contract, worker; 8 million to 10 million temp workers are placed each day worldwide. And they're not just filling in at reception desks. Today, there are temp suppliers for every kind of job, all the way up to CEO. Second, a growing number of businesses are outsourcing their employee relations to professional employee organizations (PEOs)--third-party groups that handle the evermounting administrative tasks associated with managing a company's employees. Temps and PEOs free up leaders to focus on the business rather than on HR files and paperwork. But if organizations outsource those functions, they need to be careful not to damage relationships with their people in the process, Drucker concludes. In early 2000, Verizon Communications implemented a Human Resources Balanced Scorecard to evaluate the effectiveness of and payoffs from human resource management. This case describes the benefits of the scorecard and the challenges of measurement and implementation. Teaching Purpose: To help students understand: 1) how to implement a Balanced Scorecard, 2) how to measure and improve the effectiveness of support functions, and 3) how to link nonfinancial measures to financial measures of support functions when financial benefits are difficult to quantify. JetBlue Airways shows how an entrepreneurial venture can use human resource management, specifically a values-centered TN # 9-801-386 6p AvantGo HBSP # 9-601-095 19p Silicon Valley, CA; high technology/wireless/mobile; 310 employees; 1998-2000 The Ritz-Carlton Hotel Company HBSP # 9-601-163 30p Washington, DC; hospitality; $1.5 billion revenues; 18,000 employees; 2000 TN # 9-602-113 SUPER VALU Inc: Professional Development Program HBSP # 0-900-019 21p SG Cowen: New Recruits HBSP # 9-402-028 15p TN # 9-900-020 4p Minnesota; food wholesale/retail; $17.4 billion revenues; 50,000 employees; 1999 New York; financial services; 500 employees; 2001 approach to managing people, as a source of competitive advantage. The major challenge faced by Ann Rhoades is to grow this people-centered organization at a rapid rate, while retaining high standards for employee selection and a small company culture. Teaching Purpose: To consider the role of human resource management, leadership, and values in a start-up venture, and to address the tension between a strong organizational culture and rapid growth. Richard Owen, CEO of AvantGo, is preparing for a meeting in which he will set the human resource policy for the firm going forward. It has been three months since the company's IPO, and given the tremendous cramp in hiring over the six months prior to the IPO, he knows that this meeting will set the expectations for the many annual evaluations that will follow. Uppermost in his mind is the decision on whether to implement a "forced-curve" grading scheme, and the implications of this decision on staff perceptions and notification. In just seven days, the RitzCarlton 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 selfrespect and dignity, to create award-winning service. SUPERVALU examines the creation and implementation of a training program for attracting and retaining college graduates for the nation's largest wholesale food distribution company. It addresses: 1) program design and 2) the management of the design effort and program implementation. The case is appropriate for courses in organizational behavior, human resources management, and general management. Teaching Purpose: To learn how to manage the creation, introduction, and perpetuation of a complex training program in a large, dynamic business organization with a strong culture. Chip Rae, director of recruiting at SG Cowen, must decide which recruits to keep after the final interview process for new outside associate hires. Along with team captains assigned to each school, he reviews the criteria used to make hiring decisions. Their new strategy is to look beyond the top 10 core business schools for the best of class in the top 25, avoiding people in the middle of their class. After some initial resistance, senior managers eventually see the wisdom of the new strategy. Chapter 21: Organisational Control and Power Power is the HBR Article great motivator # R0301J 9p Balancing Corporate Power: A New Federalist Paper HBR Article # 92604 9p Nowadays, with organizations growing ever flatter and responsibility being pushed further down the ranks, admitting to a desire for power is a little out of fashion. But as the research in this 1976 classic HBR article shows, power is essential to good management. In fact, when it comes to managing big companies, the desire for power-that is, a manager's desire to have an impact, to be strong and influential--is more important than the need to get things done or the wish to be liked. The need to achieve, while important in small companies, actually becomes counterproductive in large, complex organizations, leading managers to try to do things themselves rather than spread tasks among many people. And managers who need to be liked tend to make exceptions for particular subordinates' needs, undermining morale. But seeking power is not the same as seeking glory. People who want power only to further their own careers, rather than the goals of the organization, tend to have subordinates who are loyal to them but not to the company, making them less effective on the whole. And wanting power is not the same as throwing it around. Correlations between employee morale and sales figures show that individuals who manage by fiat are less effective than those whose style is more democratic. As the many examples show, top executives can learn to tell who the good managers are likely to be and to train existing ones to be more effective. McKinsey Award Winner. Given that organizations are seen more and more as minisocieties, the prospect of applying political principles to management makes a great deal of sense. Federalism is particularly appropriate because it offers a well-recognized system for dealing with paradoxes of power and control: the need to make things big by keeping them small; to encourage autonomy but within bounds; and to combine variety and shared purpose. Federalism responds to these paradoxes by balancing power Motorola Corporation: The View from the CEO Office HBSP # 9-494-140 15p Schaumburg, IL; electronics; Fortune 500; $17 billion revenues; 120,000 employees Kentucky Fried Chicken (Japan) Limited HBSP # 9-387-043 20p Japan, United States; fast food; large; $2 billion revenues; 1970-1983 Chapter 22: Organisation Development Culture Sealed Air HBSP United States, Europe, Corporation: # 9-398-096 Asia; packaging (protective Globalisation 18p and specialty); $800 million and Corporate revenues; 4,200 Culture HBSP employees; 1997 among those in the center of the organization, those in the centers of expertise, and those in the center of the action--the operating businesses. Federalism avoids the risks of autocracy and the overcontrol of a central bureaucracy. It ensures a measure of democracy and creates a "dispersed center" that is more a network than a place. McKinsey Award Winner. Motorola, a leader in semiconductors and telecommunications, embarked on an ambitious program of renewal beginning in the early 1980s, leading to dramatic improvements in the company's quality, cycle time, and growth. Much of this progress was attributed to a major investment in workers' skills and in mechanisms that encouraged teams of employees to work on continuous improvement projects. In 1994 top management considered whether to promote a corporate-wide empowerment initiative that would encourage an unprecedented downward delegation of responsibilities. With very ambitious global growth goals, Motorola aspired to be "the finest corporation in the world," with an organization that was both more flexible and participative and dedicated to continuous improvement. The case focuses on the role of the CEO office in promoting corporate initiatives while preserving the $17 billion corporation's decentralized structure. Describes the internationalization of the Kentucky Fried Chicken (KFC) fast food chain, focusing on KFC's entry into Japan. An entrepreneurial country general manager, Lou Weston, battles numerous problems to establish the business and is eventually highly successful. In doing so, Weston ignores or circumvents policies and control from KFC's headquarters and becomes very upset when more sophisticated planning, coordination, and control systems begin to constrain his freedom. The case presents both the headquarters and subsidiary perspectives and allows discussion of the conflicts between strategic planning and control and entrepreneurial independence in a multinational company. Sealed Air Corp.'s CEO and COO are considering what approach they should take to building a seamless corporate culture worldwide. Anticipating continuing # 9-398-097 34p Meg Whitman at eBay Inc (A) HBSP # 9-401-024 32p San Jose, CA; Internet; 1999 Corning – 198396: Transition at the Top HBSP # 9-401-034 30p Corning, NY; glass; Fortune 500; $5 billion revenues; 20,000 employees; 19831996 Follow on Case # 9-401-035 Slade Plating Department HBSP # 9-496-018 11p Campaigning for Change HBR article # R0207G 5p Michigan; metal products growth and expansion, especially outside the United States, they are concerned with preserving and promoting the culture that has been one of the company's key assets. However, their experiences in integrating acquired companies, especially outside the United States, have heightened their awareness of differences among the regional cultures of the world and the challenges they face in maintaining a unified corporate culture. Teaching Purpose: To illustrate the challenges of building a single corporate culture in a global enterprise and to explore the tensions between U.S. culture and cultures of Europe and Asia. Meg Whitman takes over as CEO of eBay from the founder. She must figure out how to lead the company through a stage of phenomenal growth without compromising eBay's unique external customer culture and internal culture--its key success factors. A rewritten version of an earlier case. Focuses on Jamie Houghton's efforts to revitalize Corning from 1983-1996, including the development of a very strong set of values and culture. The issue centers around Roger Ackerman's rise to president, then chairman/CEO, and his drive to both change the business strategically and financially and develop a new culture to support this change. Describes a conflict between the values and norms of a segment of an internal social system and those of management and the wider culture. Includes decision opportunity. A rewritten version of an earlier case. Most organizations must change if they're to stay alive. Change is tough to accomplish, but it's not impossible and can be systematized. The author, who has been involved in change initiatives at scores of companies, believes that the success of such programs has more to do with execution than with conceptualization. The successful change programs he observed had one thing in common: They employed three distinct but linked campaigns--political, marketing, and military. A political campaign creates a coalition strong enough to support and guide the initiative. A marketing campaign must go beyond simply publicizing the initiative's benefits. It focuses on listening to ideas that bubble up Agilent Technologies: Organisational Change (A) and (B) Stanford GSB 0D1A 35p Change Without Pain HBR Article # R00401 5p 0D1B 2p technology; $10.8 billion revenues; 46,000 employees; 2000-2001 from the field as well as on working with lead customers to design the initiative. A clearly articulated theme for the transformation program must also be developed. A military campaign deploys executives' scarce resources of attention and time. Successful executives launch all three campaigns simultaneously. The three always feed on one another, and if any one campaign is not properly implemented, the change initiative is bound to fail. On March 2, 1999, HewlettPackard (HP) announced a plan to create a separate company, subsequently named Agilent Technologies, made up of HP's businesses in test and measurement, semiconductor products, healthcare solutions, chemical analysis, and the related portions of HP laboratories. In developing the transformation strategy, Agilent president and CEO, Ned Barnholt, grappled with how to improve the efficiency and effectiveness of the new company while still maintaining the best portions of HP's culture and practices. Barnholt adopted HP's values of innovation and contribution, trust and respect for individuals, and uncompromising integrity, but he added three new values: speed, focus, and accountability. Barnholt also wanted to improve the company's efficiency in terms of shared services. In mid-2001, the Agilent team faced a series of unexpected challenges. On April 5, 2001, Barnholt announced that business conditions had worsened further than previously expected. Barnholt wondered whether he and his team had gone too far in the organizational and cultural changes they had tried to implement. He wondered whether his vision of speed, focus, and accountability would be compatible with HP's legacy values and culture, and if so, how would he integrate the two? Teaching Purpose: Students will analyze how a company such as Agilent grappled with the challenges of transforming an ingrained HP culture within a brand new work environment. Students will get a sense of the challenges spun-off companies such as Agilent face, assess Agilent's strategies and implementation, and recommend additional strategies and steps. Change or perish is a corporate truism, but so is its unhappy corollary: many companies change and perish. The process of change can tear an organization apart. Drawing on his research over ten years, the author suggests that companies alternate major change initiatives with carefully paced periods of smaller, organic change, using processes he calls tinkering and kludging (kludging is tinkering on a large scale). The result is dynamic stability, which allows change without fatal pain. Citing examples from General Electric to Barnesandnoble.com, the author describes dynamic stability as a process of continual but relatively small reconfigurations of existing practices and business models rather than the creation of new ones. As they tinker and kludge, successful companies would be wise to follow these four guidelines: reward shameless borrowing; appoint a chief memory officer who can help the company avoid making the same old mistakes; tinker and kludge internally before searching for solutions externally; and hire generalists, because generalists tend to be more adept at tinkering and kludging. As a paradigm of successful pacing, the author cites the efforts of Lou Gerstner at IBM, American Express Travel Related Services, and RJR Nabisco. Chapter 23: Management Development and Organisational Effectiveness Wainwright HBSP Missouri; automotive Traces the growth of Wainwright, Industries: # 9-396-219 supplier; $28 million a small automotive supply Beyond the 15p revenues; 300 employees; company, focusing on its Baldridge 1979-1996 commitment to quality in 1981 and the evolution of its quality culture. Breakthrough programs that stress "trust and belief" in the workforce and commitment to customers result in Wainwright winning the Malcolm Baldrige Award in 1994. Breakthrough HBR Article HBR's editors searched for the Ideas for 2004: # R0402A best new ideas related to the The HBR list 20p practice of management and came up with a collection that is as diverse as it is provocative. The 2004 HBR List includes emergent concepts from biology, network science, management theory, and more. A few highlights: Richard Florida wonders why U.S. society doesn't seem to be thinking about the flow of people as the key to America's advantage in the "creative age." Diane L. Coutu describes how the revolution in neurosciences will have a major impact on business. Clayton M. Christensen explains the law of conservation of attractive profits: When attractive profits disappear at one stage in the value chain because a product becomes commoditized, the opportunity to Getting the truth into Workplace Surveys HBR Article # R0202K 7p Rudi Gassner and the Executive Committee of BMG International (A) HBSP # 9-494-055 21p TN # 9-494-122 27p Global; entertainment/music; large; $2 billion revenues; 1993 earn attractive profits with proprietary products usually emerges at an adjacent stage. Daniel H. Pink explains why the master of fine arts is the new MBA. Herminia Ibarra describes how companies can get the most out of managers returning from leadership-development programs. Iqbal Quadir suggests a radical fix for the third world's trade problems: Get the World Bank to lend to rich countries so that there are resources for retraining workers in dying industries. There's no doubt that companies can benefit from workplace surveys and questionnaires. Good surveys accurately home in on the problems the company wants information about. They are designed so that as many people as possible actually respond. And good survey design ensures that the spectrum of responses is unbiased. In this article, the author, a former research scientist at the University of Michigan and currently the president of a survey design firm, explores some glaring failures of survey design and provides 16 guidelines to improve workplace assessment tools. Applied judiciously, these rules will not only make a tangible difference in the quality and usefulness of the data obtained, but will also produce an increased response rate. The guidelines-and the problems they address-fall into five areas: content, format, language, measurement, and administration. Following the guidelines in this article will help you get unbiased, representative, and useful information from your workplace survey. Explores the roles of CEO Rudi Gassner and the 9-person executive committee in leading BMG International. BMG International is the international music subsidiary of Bertlesmann, a German company that is the second-largest media conglomerate in the world. Describes a 1993 decision that Gassner and the executive committee must make about whether or not to change managers' business plans and bonus targets as a result of a newly negotiate reduced manufacturing cost. Allows for discussion of a number of timely and important issues: 1) the complexities of managing and growing a large global business; 2) the tensions between centralized corporate control and 3M: Profile of an Innovating Company HBSP # 9-395-016 20p United States; high technology products; Fortune 500 decentralized local management in a global organization; 3) the impact of leadership style on corporate culture and performance; 4) the challenges of leading a senior mangement team; and 5) the final decision by CEO Rudi Gassner and the subsequent actions taken by the members of the executive committee. Traces the birth and development of 3M Corp., focusing in particular on the origins of its entrepreneurially-based ability to innovate. In particular, it highlights the role of CEO William L. McKnight in creating a unique set of values, policies, and structures to nurture and develop continuous renewal. With the changing environment of the 1980s, however, a new generation of CEOs begin to adopt new policies and change the cultural norms that helped 3M grow. The trigger issue focuses on what other changes are required.