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click here for freelancing tutoring sitesINTEGRATIVE CASE 1.0

RONDELL DATA CORPORATION

OVERVIEW

Problems were nothing new at the Rondell factory. The Model 802 followed the pattern of other new products which hit delays and problems in the transition from design to production. The 802 would be at least one month late getting into production. Ron Porter, vice president for sales, was furious. His customer needed 100 units NOW. Rondell was the customer’s only late supplier. Frank Forbus, director of engineering, had worked for Rondell for eight months. Frank’s predecessor in the engineering job had been fired for protesting too vehemently about other departments. In fact, the highest turnover job in the firm was Frank Forbus’s. For several years, the firm had experienced a steadily increasing number of disputes between research, engineering, sales, and production people—disputes generally centered on the problem of new product introduction. Ultimately, Frank Forbus was fired.

DISCUSSION QUESTIONS TO ASSIGN

1. How has growth affected Rondell?2. What are the sources of conflict?3. Describe the organizational design at Rondell?4. What design changes should Rondell make?

DISCUSSION392

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393 ● Integrative Cases

1. How has growth affected Rondell?

Rondell started 100 employees in 1947 and manufactured electrical testing devices at first, then the company branched into radio broadcasting equipment, and into data transmission equipment. As a young, small organization, communication at Rondell was face-to-face. Informal relationships between Rondell’s veteran employees formed the backbone of the firm’s day-to-day operations; all the managers relied on personal contact, and Bill Hunt, the president, often insisted that the absence of bureaucratic red tape was a key factor in recruiting outstanding engineering talent.

However, as Rondell grew to 800 employees by 1978 and offered a wide range of products, it became large and complex, and the distance between top leaders and workers in the technical core increased. The increase in size forced Rondell to establish formal organization relationships with an organization chart and an executive committee.

2. What are the sources of conflict at Rondell?

The firm had experienced a steadily increasing number of disputes between research, engineering, sales, and production people—disputes generally centered on the problem of new product introduction. Quarrels between departments became more numerous under MacLeod, Kilmann, and Forbus. The sources of intergroup conflict are goal incompatibility, differentiation, task interdependence, and limited resources.

Goal incompatibility: The goals of each department reflect the specific objectives members are trying to achieve. Frank Forbus was in charge of both research (really the product development function) and engineering services (which provided engineering support). However, his relationship with research was not clear-cut. Frank saw his biggest problem is getting acceptance from the people he worked with. Doc Reeves, Director of Research, saw development engineering as Rondell’s future. He was not interested in management routines, scheduling projects, or checking budgets. Paul Hodgetts, head of special components in R & D, valued bench work, but complained of engineering services because they did things their own way. John Oates, head of the radio electronic design section, felt that production engineering was almost nonexistent in this company. Dave Schwab, Factory Superintendent, felt that to be efficient, production had to be a self-contained department and control what came into and out of the department. Ron Porter, Vice-President of Sales, was supposed to be


Integrative Cases ● 394

selling, but was settling disputes and making excuses to waiting customers.

Differentiation: Functional specialization requires people with specific education, skills, attitudes, and time horizons. For example, members of the sales department are influenced by departmental norms and values. At Rondell, research, production, and sales differ in values, attitudes, and standards of behavior, and these subcultural differences lead to conflicts.

Task interdependence: the dependence of one unit on another for materials, resources, or information. Sequential interdependence means that the output of one department goes to the next department. Everything at Rondell hinges upon the engineering department. If the engineering design has flaws, it affects production. However, production bugs at Rondell came from the production and engineering departments bowing to sales pressure, and putting equipment into production before the designs were really ready.

Limited Resources. Another major source of conflict involves competition between departments for limited resources. Resources were given to engineering because nothing could be done in production without a clean design from engineering. This situation was a source of frustration to sales.

3. What are the organizational design issues at Rondell?

As Rondell has increased in size, it has become a machine bureaucracy as shown in Exhibit 1.7(b). It is large, mature organization with fully elaborated technical and administrative departments, including engineers, researchers, sales, and financial analysts who scrutinize, routinize, and formalize work. This form reflects extensive formalization and specialization. This structure can be quite effective. It promotes efficient production and in-depth skill development, and the hierarchy of authority provides a sensible mechanism for supervision and control at Rondell. This organizational design is suited to a simple, stable environment. It does not do well in a dynamic environment when products must be brought to market quickly because a bureaucracy like Rondell is not adaptable. The customer for the 802 needed 100 units now, but delivery was delayed for a month.

Also, since activities at Rondell are grouped together from the bottom to the top of the organization, there is little collaboration across functional departments, and problems have occurred. For example, the delay in delivering the 802 infuriated the sales department, and caused conflict. Rondell is coordinated and controlled through a vertical hierarchy, with



decision-making authority residing with upper-level managers like Doc and Frank. However, in a rapidly changing environment, the hierarchy becomes overloaded, and top executives like Frank and his predecessors cannot respond rapidly enough to problems.

4. What design changes should Rondell make?

Rondell should become a learning organization. The vertical structure that creates distance between managers at the top of the organization and workers in the technical core should be disbanded. Rondell should create a structure around horizontal workflows or processes rather than departmental functions. The vertical hierarchy should be flattened, with perhaps only a few senior executives in traditional support functions such as finance or human resources. Rondell could use self-directed teams as the fundamental work unit for a product like the 802. Because teams include members from several functional areas, boundaries between these functions would be eliminated. The team would collaborate and coordinate its effort to deliver a high-quality product to the customer.

INTEGRATIVE CASE 2.0IT ISN’T SO SIMPLE: INFRASTRUCTURE CHANGE

AT ROYCE CONSULTING

OVERVIEW

Royce Consulting is considering some changes that the staff seems to like, but that managers are opposed to. One change regards the assignment of offices. Since managers often work at client sites, the proposal is a “hoteling” system in which mangers would schedule an office for when it its needed rather than having a permanent office assigned to them. This would take advantage of the fact that offices were frequently vacant, but would require a change in work patterns and would require managers to keep their files in a centralized file room. Another change is to upgrade to state-of-the-art electronic office technology using notebook computers, proprietary software, and an electronic filing system.

Royce had developed a very stable and well defined culture that was taught to all new hires. The norms included high performance expectations and strong job involvement. All managers were expected to be professionals and behave in a



professional manner. The company was very client-oriented and the management style was directive.

As Royce projected further growth and staffing needs, a need was seen to improve on space unitization and manger productivity. A feasibility study was conducted and it was discovered that the partners generally supported the plans for change and felt that managers would follow their leadership. Most partners and managers did not want their files centralized, however. The managers also opposed the “hoteling” concept since they had worked hard to become managers and have an office of their own. An office gave them status and convenience. In survey results the managers revealed the fact that they supported shared offices more than the “hoteling” idea. However, they said they would go along with what the partners directed, reflecting the prevailing culture. The managers enthusiastically supported the new productivity tools.


1. Why do the managers at Royce oppose the “hoteling” concept even though it is financially the superior system?

2. How does the organizational culture affect this situation and this decision?

3. If the partners to ahead with the plan, what would you predict will be the outcome?

4. Based on your analysis, what recommendations would you give to the partners?

DISCUSSION

1. Why do the managers at Royce oppose the “hoteling” concept even though it is financially the superior system?

A major reason the “hoteling” system is opposed is the fact that gaining an office, even if it is shared, is seen as a status symbol and a sign that a manager has “arrived.” The managers have worked with this goal in mind and now feel that the rules are being changed in the middle of the game.

A second issue is the fact that they would have to store their files in a different location when they were not using an office. This could be a major inconvenience to managers who would then have to transfer files back and forth.

While they liked the upgrade in technology plan, they did not like the idea of having a centralized filling system. This involves two distinct issues. One deals with control. They want to have control over their own files. The second is likely related to the internal competition that exists within



the organizational culture. Since employees are competing with each other for promotions sharing information from their files is simply not appealing. The personal costs outweigh the benefits.

2. How does the organizational culture affect this situation and this decision?

The company has prided itself on having a stable and well-defined culture. The proposed changes would disrupt this culture. The culture would be changed as the status symbol of private offices is removed. Work pattern changes would also change working relationships.

The fact that a directive style of management is used also plays a major role. The managers are likely to go along with the partners’ decisions because they are used to being directed. They also do not want to spoil their own chances for future promotions. This directive style also inhibits feedback directly from the managers on how the feel about things. It stifles upward communication.

At the same time the partners feel that this is their decision to make. Since the directive management style is part of the culture it is understandable that they would feel this way. They know that the company will follow their edicts.

3. If the partners to ahead with the plan, what would you predict will be the outcome?

Since the prevailing culture dictates that the partners have the final authority, it is likely that everyone will go along with the plan and try to make the most out of it they can. However, there is also the danger that some managers or staff members aspiring to become managers may see this as a form of betrayal of the psychological contract they have with the firm. They could even decide to leave the company and go where they can trust top management more.

Another effect could be that resentment is simply driven underground. Morale could go down without anyone expressing the reasons why. This could have a negative impact on morale and productivity.

4. Based on your analysis, what recommendations would you give to the partners?

Recommendations of students will vary, but it would seem that the partners should be more open to communication from those below them. A more participative style of management seems to be called for in this case. Organizational theory suggests that those most affected by a



change should participate in decision making about that change.

The partners should probably set the parameters of the situation and then let the managers devise a change they can endorse. This way they would have ownership for the change and feel committed to it. The parameters could include the financial information, the growth plans, and the need to improve productivity. Since this is a consulting firm, they should apply some of the same principles they most likely ask their clients to follow.



INTEGRATIVE CASE 3.0CUSTOM CHIP, INC.

OVERVIEW

Custom Chip, Inc. is a semiconductor manufacturer specializing in custom chips for use in radio frequency devices such as satellite transmitters. Cost reduction had become a priority because corporate growth had stopped from a downturn in the industry. Wafer fabrication takes 8 to 12 weeks and assembly takes 4 to 6 weeks. At each step operations are subject to considerable operator and machine error, resulting in an average product yield of 60-70 percent. Note that “yield” refers to the ratio of finished products that meet specifications relative to the number that initially entered the manufacturing process. Whenever yield falls in the 35-50 percent range, the company runs the risk of not being able to complete the order on time or of having too much waste.

In this case, students see the dynamics between product engineering, applications engineering, and manufacturing. Product engineers may stop their work to respond to six questions from the manufacturing floor and four calls to testing stations. Applications engineers, who feel that they get little recognition for solving manufacturing problems, are also called to manufacturing for resign when there are problems. Manufacturing, under the gun for output, feels that they suffer for lack of adequate documentation of the manufacturing steps. Each department has its separate goals, although it is evident that those separate goals are not yet brought together in the form of unified corporate goals.


1. Why does conflict exist between the departments at Custom Chip, Inc.? 2. Analyze workflow interdependence among departments.3. Based on your analysis, what recommendations would you give to management?4. Would you recommend a change in the organization’s design?

DISCUSSION

1. Why does conflict exist between the departments at Custom Chip, Inc.?

Chapter 13 offers a sophisticated structure for the analysis of conflict between departments. However, if the class has not yet gotten that far in the text, analysis of the problem will be better for having talked even in general terms about the conflict. Goal incompatibility is an issue because the departments are driven by distinct goals, and there is lacking a common concern on departmental yield goals. Differentiation further



contributes to conflict because of the difference in training and background of the engineers versus manufacturing staff; even between the types of engineers, there is differentiation because of the cognitive orientation imposed by the focus of their engineering effort–design versus process. Task interdependence is relatively high, and therefore further contributes to the conflict felt between departments. Although departments might prefer not to have to interrelate with the others, manufacturing is dependent on engineering for adequate manufacturing specifications, and for their involvement in the manufacturing process to solve process and design problems that are interfering with yield.

2. Analyze workflow interdependence among departments.

Custom Chip is treating the relationships as if they were sequential. They are focused on developing low level, written manufacturing specifications to coordinate workflow between the departments. However, when interdependence is realized to be high (usually when sudden problems are realized in the manufacturing process), employees react to the need for face-to-face communication and unscheduled meetings with impatience.

If Custom Chip were to come to grips with the extent of independence that actually exists between departments for accomplishing the objective of improved yield, they would be ahead. Then, planning and written procedures would not be abandoned as a tool for coordination, but those would not be the only acceptable mechanisms for achieving coordination. They would move to the higher level of mutual adjustment for achieving coordination, as well.

3. Based on your analysis, what recommendations would you give to management?

Superordinate goals that would bring these three disparate departments to common concern for yield would be one good place to start. When the departments share the common goal of the organization, perhaps they would willingly take decision making to a higher level to brainstorm better ways to organize their work so manufacturing can benefit from the regular input from engineering without it being seen by engineering as a bothersome interruption. If select engineers (one process and one applications engineer) were to rotate into manufacturing for short periods on new orders, for example, they would understand first-hand the issues faced by manufacturing. Alternatively, with a common bond of superordinate goals, they might brainstorm a team approach to the development of written documentation of the manufacturing steps, or a team approach to the actual product design. In other words, by bringing the communication level between departments to match the level of



needed interdependence between departments, the common goal of improved yield would be improved. (A change in organizational structure is suggested below that would allow design to reinforce the corporate goal.)

4. What is the type of design used now at Custom Chip? Would you recommend a change in the organization’s design?

As shown on the organization chart in the text, Custom Chip currently has a functional structure. One of the disadvantages of a functional structure is enforcement of the separation between functional areas – a problem that already plagues the company. Movement toward the functional structure with horizontal linkages would be helpful in accomplishing the improved communication across departments that is needed. In this manner, design would be used to help improve the corporate goal of improved yield.

Students may be inclined to jump into a matrix design for Custom Chip. Although it is conceivable that such a design could work, the company is not ready to move to purposeful violation of unity of command, and to experience the challenges imposed by matrix. Move first to improving communication between departments as suggested in the response to question 3 before considering the imposition of a complex design structure.



INTEGRATIVE CASE 4.0“Ramrod” Stockwell

OVERVIEW

The centers around the vice president of production, Ramsey Stockwell. He was regarded as a very competent production man, and his loyalty to the company was unquestioned. He managed to keep outdated facilities operating and was able to push through the construction of quite modern facilities in the finishing phases of the production process. But he was in trouble with his own staff and with other divisions of the company, principally sales. Stockwell failed to delegate authority to his subordinates. People asked for permission for this and that, but those who took some action on their own could be bawled out unmercifully. Stockwell was isolated socially from the right group of top personnel and didn’t handle people very well. He balked at the idea of learning management skills through leadership training. By contrast, Rob Bronson, the sales manager, was widely regarded as an extremely bright, capable, likable, and up-and-coming manager. The relationship between the production department and the sales department was strained.


1. What are Stockwell’s vertical sources of power?2. What are the horizontal sources of power?3. How could empowerment improve this situation?4. What do you recommend for this company?

DISCUSSION

1. What are Stockwell’s vertical sources of power?

Since the company was a vertical hierarchy, Stockwell derived vertical power from his formal position which had certain rights and responsibilities. People throughout the organization accepted Stockwell’s legitimate right to make decisions and direct activities. This is legitimate power. Control of information is another source of power. Stockwell recognized that information was a valuable resource and that by controlling what information was shared, he could influence how decisions are made. Sales personnel found it quite difficult to get reliable information from production as to delivery dates or even what stage a product was in. Stockwell would not allow production people to give any but the most routine information to sales personnel. Because of the high centralization of authority and information in production, production personnel often did not know themselves. Stockwell even “contracted” the lines of authority by giving orders directly to a manager or a head



foreman rather than by working through the intermediate levels. This violated the chain of command, left managers uninformed, and reduced their authority.

2. What are the horizontal sources of power?

Horizontal power pertains to relationships across departments. All the vice presidents ─ Stockwell in production, Bronson in sales, and Carswell in research are at the same level on the organization chart. However, each department does not have the same amount of power. Charles Perrow’s research (see Exhibit 13.5) shows that in most firms, sales has the greatest power. In a few firms, production was also quite powerful. Power among departments depends on strategic contingencies─ activities that are essential for attaining organizational goals. Departments involved with strategic contingencies have greater power. Stockwell’s department handled the production of aerospace products that were difficult to make and failure to meet specifications resulted in substantial losses. About 20 percent of the cash value output was in aerospace metals. By contrast, the sales division performed like a well-oiled machine and had enthusiasm and adaptability. At the semiannual company meeting, the chairman of the board complimented sales for its good work, but there was only the stock ‘well done’ for production. The annual reports credited sales for the good years and referred to equipment failures, crowded or poor production facilities in bad years.

3. How could empowerment improve this situation?

In the current situation, the friction between production and sales was spilling over into other areas, and the morale of management was suffering. People under Stockwell resented the way he took over their jobs at times and the lack of information available about other aspects of production. A sales manager made promises to the customer without checking with the vice president of sales, who could have checked with Stockwell. “He was right,” said Vice President Bronson. “I can’t spend all my time calling Ramsey about status reports.

In forward-thinking organizations, top managers want lower-level employees to have greater power to do their jobs more effectively. They push power down the hierarchy and share it with employees. Empowerment is power sharing, the delegation of authority to subordinates. Empowering employees gives them three elements to act more freely in their jobs: information, knowledge, and power.

4. What do you recommend for this company?



Structural reorganizations strike at the heart of power and authority relationships.This organization should be designed to provide both vertical and horizontal information flows to accomplish the organization’s overall goals. Since the current structure doesn’t fit the information requirements of the organization, people either have too little information or spend time processing information that is not vital to their tasks, thus reducing effectiveness.

However, there is an inherent tension between vertical and horizontal mechanisms in an organization. Whereas vertical linkages are designed primarily for control, horizontal linkages are designed for coordination and collaboration, which usually means reducing control. This firm may have to experiment to find the correct degree of centralization or decentralization. Also, the principle of reciprocity is one of the key factors affecting influence relationships in organizations. Doing additional work that helps out other departments obligates the other departments to respond at a future date. Sales and production might use reciprocity to bridge their differences.



INTEGRATIVE CASE 5.0W.L. GORE & ASSOCIATES, INC. ENTERING 1998

OVERVIEW

This case describes the birth, growth, and culture of a very unique company. It is unique in many ways. Innovation is facilitated by the lack of bureaucracy and associated overhead along with employee commitment, and the use of product champions. Internal cooperation between divisions and departments is also encouraged. The company has never had titles, hierarchy, or any conventional structures. It also has no mission statement or code of ethics for the entire company. The company maintains small plants to accentuate a close-knit atmosphere and encourage communication. The company uses a lattice organization with the following characteristics:

1. Direct lines of communication2. No fixed or assigned authority3. Sponsors, not bosses4. Natural leadership defined by followership5. Objectives set by those who must make them happen6. Tasks and functions organized through commitments

The organization is similar to many quality circles going on all the time. It seems to work in start-up companies by dynamic entrepreneurs, not in established companies. Leadership is widespread throughout the organization and is continually changing and evolving. The culture is also egalitarian and innovative. The company uses sponsors to train and encourage new personnel. Sponsorships continue throughout a person’s career. Pay comes in three forms: salary, profit sharing, and an Associates’ Stock Ownership Program. A compensation team determines pay levels based on the contributions of associates. The company follows four Guiding Principles and Core Values:

1. Try to be fair2. Encourage, help, and allow other Associates to grow in knowledge, skill,

and scope or activity and responsibility3. Make your own commitments, and keep them4. Consult with other Associates before taking actions that may be “below

the water line”


1. What is it about the Gore organizational culture that keeps it a leader in innovation and creativity?

2. What problems would a newly hired person have working at Gore?3. What advantages does the Gore culture provide in a dynamic world?



DISCUSSION

1. What is it about the Gore organizational culture that keeps it a leader in innovation and creativity?

The Gore culture is very informal and that encourages creativity by individuals. Its lack of formal organizational structure also makes it easier to try out new ideas and to bring them to fruition. Of course, its emphasis on product champions also plays a key role. Since Associates are paid by their contributions, this also encourages creativity.

2. What problems would a newly hired person have working at Gore?

Most of us are used to a structure environment with rules, bosses, and directions provided. Gore provides none of this. New Associates must adjust to this looser environment. They must learn to find their own ways and places to contribute. They must certainly be self-motivated. A lot of these problems are offset by the open communications, encouragement, and employee ownership of the company.

3. What advantages does the Gore culture provide in a dynamic world?

The biggest advantages of the Gore culture in a dynamic world are its speed and flexibility. Without a bureaucracy to slow things down, it can change and come up with new ideas and products much quicker. It can adapt to the changing demands of customers or increased competition more rapidly.



INTEGRATIVE CASE 6.0DICK SPENCER

OVERVIEW

After excelling in the sales department, Dick Spencer changed the direction of his career and became a manager. At the time of his appointment, it was unclear whether Dick was willing or able to assume responsibilities in other divisions of the organization. During the course of the conversation with his university friends, Dick Spencer began to recall a series of incidents that probably had resulted from the conflicting pressures. When describing these incidents, he continued to emphasize the fact that his attempt to be relaxed and casual had backfired. Because of the constant pressures and demands of the work, he had literally dumped his family and had withdrawn into the plant.


1. What is the main source of conflict in this case?2. Does Dick Spencer have power or authority?3. What challenges did Dick Spencer face as an international manager? 4. What political tactics would have helped Dick Spencer?

DISCUSSION

1. What is the main source of conflict in this case?

The main source of conflict is differentiation as defined in Chapter 4: “the differences in cognitive and emotional orientations among managers in different functional departments.” Functional specialization requires people with specific education, skills, and attitudes. Dick Spencer joined the sales department because of his ability and aptitude consistent with sales work. His sales record was so high that it set difficult goals for other salesmen, but his co-workers still considered him a “regular guy” and enjoyed socializing with him. As a member of the sales department, Dick was influenced by departmental norms and values. His fellow salesmen concluded that his looks, charm, and ability on the golf course contributed as much to his success as his ability to sell products.

However, departments or divisions within an organization differ in values, attitudes, and standards of behavior, and these subcultural differences lead to conflicts. As soon as Dick left sales, his career became frustrating and filled with conflict. He went from troubleshooter to plant manager without developing the necessary interpersonal and management skills. He could



always get the job done, but he failed to build good relationships with fellow managers. He micromanaged work rather than delegated it. This caused ill-will and mistrust between him and the managers at the Modrow plant. As a result, he faced resistance on the part of the managers, supervisors, and foreman, and he had a difficult reaching company goals. He became isolated and withdrawn.

2. Does Dick Spencer have power or authority?

Dick has authority but he doesn’t have power. Authority can achieve desired outcomes, but only as prescribed by the formal hierarchy and reporting relationships. Dick had authority at the Canadian plant because of his position as plant manger not because of personal characteristics. However, authority at the plant exists along the formal chain of command. While power can be exercised upward, downward, and horizontally, formal authority is exercised downward along the hierarchy. This means that the workers report to their foremen, not to top managers. Dick had formal authority but little power. He knew that the Canadians resented his presence since he was brought in over the heads of the operating staff. He felt resistance from the Canadian work force as evidenced by the refusal of the foreman and the workers to comply with his direct order to cut the strips of scrap by hand.

3. What challenges did Dick Spencer face as an international manager?

Dick did not fully understand that diverse national and cultural values influence the organization’s approach to coordination and control. As a result he felt constantly frustrated and conflicted in his international assignments. When he worked in England, he experienced a culture clash, because the difference between British and American philosophy and performance in the plant was significant. In Europe, international units have a high level of independence, and European managers don’t want headquarters taking control over operational issues. On the other hand, American companies retain control through specialist headquarters staff members like Dick Spencer. Formal systems are used for coordination and control in the U.S whereas in Europe formal systems are not used for technical or operational control. Headquarters told Dick to upgrade performance, but his power and authority were less than those of his British superiors, so he had to withhold suggestions and innovations.

4. What political tactics would have helped Dick Spencer?

Dick asked the manager of the siding department if he could speak to the foreman in the scrap division; however, in doing so, he violated the chain of command in the company hierarchy. The foreman resented being called to



the plant manager’s office. He was uncooperative, and when questioned about the scrap disposal process, he answered: “We’ve always done it that way.” Dick Spencer should have developed political competence and learned to use the influence tactic of building coalitions. Politics includes informal discussions that enable people to arrive at consensus. Dick should have developed positive relationships with managers. He did walk around the plant floor and talk to workers, but this made the supervisors, managers, and foremen uncomfortable. Dick should have spend time talking with managers to build alliances. He should have discussed the scrap disposal process with the manager of siding and reached an agreement with him to cut costs.



INTEGRATIVE CASE 7.0The Plaza Inn

OVERVIEW

David Bart, General Manager of the Plaza Inn, received a letter from the hotel association of which the Plaza Inn was a member. The letter stated that the hotel’s service levels did not measure up and that the front desk and reservations, two critical departments, received the worst ratings among all of the association’s properties. Unless the management of the Plaza Inn could submit a plan for guest service improvement and pass the next inspection scheduled in six months, its membership would be rescinded. In fact, at the Plaza Inn, the inability to efficiently expedite phone calls and respond to guest needs was troubling to Bart, not only from a guest service perspective, but also from the standpoint of lost revenue.


1. What structural change is indicated at the Plaza Inn?2. How could the Plaza Inn develop a collaborative strategy?3. How could technology help solve the problems at the front desk?4. What changes in culture are needed at the Plaza Inn?

DISCUSSION

1. What structural change is indicated at the Plaza Inn?

The Plaza Inn was reopened in 1983 in a stable environment with little competition. However, the environment became more dynamic and uncertain. The end of David Bart’s first year at the Plaza Inn was marked by the outbreak of the Gulf War. During the first quarter of 1990, occupancy hit an all-time low of just 40%. As environmental uncertainty increases, the Plaza Inn has to become more organic and shift to a flexible, decentralized structure that emphasizes horizontal collaboration, widespread information sharing, and adaptability.

The Plaza Inn needs to be redesigned into a learning organization. Instead of David resolving all the problems, the employees would identify and solve problems. The structure would be created around horizontal workflows or processes rather than departmental functions such as sales, catering, F & B, front office, and housekeeping. The Plaza Inn could use self-directed teams which eliminate boundaries between functions because teams include members from several functional areas. Plaza Inn employees would be



encouraged to resolve problems by working with one another and with customers.

2. How could the Plaza Inn develop a collaborative strategy?

The Plaza Inn is a traditional organization designed for efficient performance, and strategy is formulated by top managers like David Bart and imposed on the organization. For example, Bart decide how the Plaza Inn can best respond to competitors like the new Ritz-Carlton, efficiently use resources, and cope with environmental changes. However, if the Plaza Inn becomes a learning organization, the actions of its informed and empowered workforce would contribute to strategy development. Since the Plaza Inn’s employees are in touch with customers, suppliers, and new technology, they are best suited to identify needs and solutions for strategy making. In addition, the Plaza Inn strategy could emerge from partnerships with suppliers and customers.

3. How could technology help solve the problems at the front desk?

The front desk receptionist provides guest service, answers the phone, takes messages, and books reservations. The sales office is not connected to the computerized Property Management System (PMS). Bart believes that the front desk should perform a central function in the operation of the Inn. Rather than computerize the housekeeping, sales and catering departments, and train the managers to utilize the PMS, Bart prefers that the front desk oversees those activities. This, he believes, allowed for greater consistency and control.

Since the front desk cannot perform adequately and is costing the Inn customers, Bart should computerize sales, housekeeping and catering departments and even add a computerized check-in kiosk in the lobby to relieve the chaos at the front desk. In addition, Bart should install a customer relationship management (CRM) system to track guest interactions and allow employees to call up past service records. This would enhance customer service at the Inn and make the hotel more competitive with the Ritz-Carleton, a hotel known for its outstanding customer service. CRM would coordinate sales, marketing, and customer service so that these departments work together smoothly. The Plaza Inn could also benefit from technologies such as Web services, blogs, and social networking to enhance customer relationships.

4. What changes in culture are needed at the Plaza Inn?

The Plaza Inn needs to change from a rigid to an adaptive culture. The corporate culture is fixed, and although the Plaza Inn was highly successful



in 1983 under Antoine Fluri in a stable environment, it became a victim of its success when the environment changed in 1991 during the Gulf War. The cultural values and practices that helped attain success are detrimental to effective performance in a rapidly changing environment. For example, the lack of computerization gave the Plaza Inn a small, intimate atmosphere in the 1980s, but in the current environment, it causes delays and frustration for employees and customers and is contributing to a loss of revenue.

As a learning organization, the culture of the Plaza Inn would encourage continuous improvement, and change. The Inn would adopt a mindset that would minimize boundaries within the organization. Employees would be viewed as valued contributors, allowed to develop and apply their full potential. Instead of looking for an experienced manager to head the front office and replace Laura, David Bart could help her develop the management expertise that she lacks by offering her management training. The challenge for David Bart would be to maintain stability as he actively promotes change toward a new way of thinking.



INTEGRATIVE CASE 8.0Dowling Flexible Metals

OVERVIEW

In 1960, Bill Dowling form his own manufacturing operation which consisted of a few general purpose metal working machines. Gradually the firm gained a reputation for solving unique problems and for producing a quality product on time. The “product” consisted of fabricating dies for making minor component metal parts for automobiles. To avoid being too dependent on the auto industry, Dowling marketed his services to other manufacturing firms to make, for example, legs for vending machines or metal trim for appliances. As the company diversified, it expanded and built a small factory. New markets created a need for new equipment and a larger workforce, and the plant is now three times its original size. The rapid growth has created problems.


1. How could Dowling Flexible Metals streamline its manufacturing process? 2. What role should Bill Dowling play in the company?

3. How could Dowling Flexible Metals solve its communication problems?

4. Should Dowling Flexible Metals use teams?

DISCUSSION

1. How could Dowling Flexible Metals streamline its manufacturing process?

Current manufacturing process: Dowling had a job that consisted of fabricating dies for legs for vending machines, plus manufacturing five hundred finished legs. The engineers drew the plans, but the metal tore when the workers tried to punch out the leg on the press. The engineers changed the raw material specifications. After waiting two weeks for new steel, the workers tried again, but the metal still tore. The problem was the production process, not the raw materials. The job took four months and missed the deadline.

Recommendation: Dowling Flexible Metals should adopt flexible manufacturing systems (FMS) that link together manufacturing components that previously stood alone. Machines, product design, and engineering analysis are coordinated by a single computer system. FMS would revolutionize Dowling



Flexible Metals shop floor, enabling the factory to deliver a wide range of custom-made products at low mass-production costs.

2. What role should Bill Dowling play in the company?

The traditional way of managing relied on operations roles─ defending the organization’s boundaries and maintaining direct control over resources. Today, collaborative roles are more important for success. As founder of the company, Bill is a traditional manager. He is skilled in handling operations roles in the traditional vertical authority at Dowling Flexible Metals. Bill is accountable for results through direct control over people and resources. However, by his own admission, Bill is completely out of touch. “Everything has gotten so complicated and precise in design. When you go to a customer to discuss a job you have to talk to six kids right out of engineering school. Every one of them has a calculator—they don’t even carry slide rules anymore—and all they can talk is fancy formulas and how we should do our job.”

Recommendation: Bill should adopt a collaborative management style or retire. Collaborative roles don’t have direct authority over horizontal colleagues, but are still accountable for results. Bill would have to be highly flexible and achieve results through personal communication and seeking out needed information and resources.

3. How could Dowling Flexible Metals solve its communication problems?

As Dowling has expanded, miscommunication across functional lines has increased. All departments wait for orders from Bill. As Glen Jenkins, the chief engineer said, “One thing that would really help is more information from Bill who hasn’t been specific enough or asked the right questions of the customer. Engineers communicate best with other engineers.” However shop foremen have problems with the engineers who get assignments directly from Bill. The foremen can’t follow the engineers’ instructions. The company needs to increase horizontal linkage, that is, communication and coordination horizontally across departments. This would help the company overcomes barriers between departments.

Recommendation: Use a cross-functional information system. Computerized

information systems enable managers or frontline workers to exchange information about problems, opportunities, activities, or decisions.

4. Should Dowling Flexible Metals use teams?

Project teams are the strongest horizontal linkage mechanism. When activities among departments require strong coordination over a long period of time, a



cross-functional team is the solution. Since the Dowling company plans to diversity into new product lines, it could benefit from special project teams.

Recommendation: Use a project team diversified jobs such as the one that requires computerized milling machine process tape. The task involves devising a work process for milling a part on a machine and making a computer process tape of it. Then copies of the tape are sold just like dies and parts.



INTEGRATIVE CASE 9.0The Donor Services Department

OVERVIEW

Sam wanted Joanna to analyze his Donor Services Department, because he’d received complaints about its efficiency. Since he’d been told that his office needed to double in size, he wanted to get all the bugs worked out beforehand. Joanna agreed to gather information and compile a report. The work of a Donor Services Department consists of translating letters, preparing progress reports, and answering donor questions. It handles the paperwork associated with enrolling new families, reassignments, and special gifts. Having accurate enrollment figures is crucial because the money received is based upon these figures. There is a significant level of conflict which reduces efficiency and effectiveness in the Donor Services Department.


1. What is the main issue in this case?2. How can the Donor Service Department become more effective?3. Describe intergroup conflict in the Donor Service Department?4. How could empowerment change the situation at the Donor Service Department?

DISCUSSION

1. What is the main issue in this case?

The main issue in this case is that the employees are not guided by the mission of the organization. Both José and Sam are more interested in working with the communities than in focusing on the administrative departments. When the translators wanted to relieve boredom, they socialized and gossiped. Juana was noted for sarcasm and jokes about people she didn’t like. This clique was not very welcoming to new members of the department. This subgroup disrespected Elena.

One of the primary purposes of a mission statement is to serve as a communication tool. The mission statement communicates to employees what the organization is trying to achieve. Companies in which managers are guided by mission statements that focus on a larger social purpose perform better over the long term. The Donor Service Department provides a very valuable humanitarian service, but the employees are mired in interpersonal conflict and have forgotten the purpose of their jobs within the overall purpose of the organization.



2. How can the Donor Service Department become more effective?

The Donor Service Department is less effective than it could be. Effectiveness evaluates the extent to which multiple goals—whether official or operative—are attained. Sam had received complaints from headquarters about the department’s efficiency which pertained to the organization’s internal workings. Neither Sam nor José Barriga spent time in the department. Elena, the supervisor, was at odds with a small clique of long-time translators. Juana was the ringleader in the rebellion against Elena and in feuds with people from other departments. Another obvious problem was the uneven distribution of work in the office. Nobody, including Elena, made any efforts to even out the work assignments or help out those who were buried. The subject had never been broached.

Unlike the Donor Service Department, an effective organization has a smooth, well-oiled internal process. Employees are happy and satisfied. Department activities mesh with one another to ensure high productivity. To become more effective, the Donor Service Department needs to strive to add the following elements:

• A strong, adaptive corporate culture and positive work climate• Undistorted horizontal and vertical communication• Growth and development of employees

3. Describe intergroup conflict in the Donor Service Department?

Conflict means that groups are in fundamental opposition. Intergroup conflict in the Donor Service Department occurred vertically at different levels of the organization between Elena, the supervisor, and the translators. Intergroup conflict requires: group identification, observable group differences, and frustration. First, the employees in the Donor Service Department perceived themselves as part of department. Second, there was an observable group difference. In the opinion of the translators, Elena had three strikes against her: she was not bilingual; she belonged to a different religion; and she lacked authority. The third ingredient is frustration. Frustration means that if one group achieves its goal, the other will be blocked. The subgroup showed their disdain and lack of respect for Elena by treating her with rudeness and ignoring her requests. They saw her as a watchdog, an attitude furthered by José. When Sam and José left the office, the clique often stopped working to socialize. Frustration only needs to be anticipated to set off intergroup conflict. “I liked my job better before I became supervisor,” said Elena. “Ever since, some of the girls have resented me, and I’m not comfortable trying to keep them in line.



4. How could empowerment change the situation at the Donor Service Department?

Sam and José could let the translators have greater power so they could do their jobs more effectively. Empowerment is power sharing, the delegation of power or authority to subordinates in an organization. Increasing the power of the skilled bilingual employees would increase their motivation. As it now stands several translators complained that they weren’t using their English skills and felt that they were losing fluency by doing the same boring tasks over and over. Empowering employees in the Donor Service Department would give them information about company performance, knowledge and skills to contribute to company goals, and the power to make decisions.The translators would feel more connected to the organization and carry out their important humanitarian work more effectively.



INTEGRATIVE CASE 10.0Empire Plastics

OVERVIEW

Empire Plastics Northern (EPN) had a project to increase the production rate of oleic acid.. The installation of the “wet end” went well. However, the “dry end” wasn’t working a year after completion, and they were still making changes to it. Jones knew that the technology on the dry end might prove troublesome. Exhibit 1 shows the organizational chart which highlights the key issues raised by this project. This was the first EPN project that involved two management contractors simultaneously, and neither Marshall, site project manager, nor Holdsworth, the construction engineer, was happy because their involvement had not been clearly defined. Western Construction and Teknibuild provided the design and management effort for the “wet” and “dry” ends. Empire Consultants acted as policemen; checking that design and construction were carried out according to the original process diagram and that control and safety requirements were maintained. The issue here is whether the organizational structure led to efficiency or conflict.

DISCUSSION QUESTIONS TO ASSIGN 1. Discuss the organizational structure at Empire Plastics?2. What design changes are needed?3. What is the source of conflict?4. How could conflict be resolved? DISCUSSION

1. Discuss the organizational structure of Empire Plastics?

The organizational and contractual relationships in Exhibit 1 show a hierarchy of authority with an emphasis on efficiency and control associated with specialized tasks, rules and regulations, formal reporting systems, and centralized decision making.. As top managers, both Holdsworth and Marshall have the power derived from formal position to set goals, make decisions, and direct activities. Holdsworth described the project as a double management contract. Empire Consultants traditionally assumed the role of management contactor and directly organized the trade contractors and discipline consultants. This was their first project that involved two management contractors simultaneously. However, problems arose because the chain of command in the hierarchy was not respected by the managing contractors—a key element of success in a vertical hierarchy. Teknibuild and Western sought bids separately which created a lot of repetition and in Marshall’s view, “a very inefficient way of doing projects.”



2. What design changes are needed?

There is a need to flatten the hierarchy and vertical linkages, which coordinate activities between the top and bottom of the organization. The management contractors created an extra link in the communications chain—a large link that kept breaking down. This adversely affected the efficiency of the dry end project.

Empire should add horizontal linkages such as direct contact between managers or employees affected by a problem. For example, relationships had been better at the wet end because Marshall and Weald had worked together before. Marshall knew Weald, knew how he worked and where he was coming from. They could trust each other. One way to promote direct contact would be to create a special liaison role.

3. What are the sources of conflict?

The main source of conflict was task interdependence, the dependence of one unit on another for resources and information. The project at Empire Plastics is an example of sequential interdependence which means that the output of one department goes to the next department; and as interdependence increases, the potential for conflict increases. As the purchaser of equipment, EC was responsible for getting design drawings from the supplier, Sultan Engineering. However, the contractors at Teknibuild, who were to design and build the plant, couldn’t get information from Sultan to design the steelwork and foundations. Marshall, the construction engineer, realized that Teknibuild didn’t have enough data to design properly which led to conflict. Conflict occurs when there is no agreement about the coordination of services. Teknibuild exerted pressure on Sultan Engineering and conflict resulted.

Another source of conflict was goal Incompatibility. The goals of each department reflect the specific objectives members are trying to achieve. The achievement of one department’s goals often interferes with another department’s goals, leading to conflict. Teknibuild worked from the head office in a large design office with high overheads. Holdsworth felt that Teknibuild employees were constantly watching their man-hours and they were looking for profit rather than trying to get the job done.

4. How could conflict be resolved?

Sequential interdependence requires employees to spend time coordinating and sharing information. Employees must communicate frequently, and differences in goals or attitudes will surface. Things went fine with Western Construction. Their approach was much more relaxed; they had a design



office on site with low overheads. With Western Construction onsite, there was much more opportunity for horizontal linkage and coordination. Western was seeking to set a good impression. On the other hand, Teknibuild worked from the head office in a large design office with high overheads so there was less opportunity for horizontal communication. Teknibuild’s site men had difficulty getting answers out of their Head Office.

To resolve goal incompatibility, Holdsworth should have used the political model described in Exhibit 13.2 because each department─ Teknibuild, the Site Manager, and the Site Project Manager─ has different goals. . When goal differences are great, disagreement and conflict are normal. As a result, power and influence are needed to reach decisions. The political model describes the way organizations operate much of the time. Typically, both rational and political processes are used in organizations.



INTEGRATIVE CASE 11.1 and 11.2LITTLETON MANUFACTURING (A) AND (B)1

OVERVIEW

The Director of Human Resources must recommend a course of action to a HR Process Improvement Team to address several important organizational issues during a time of severe financial constraints. The issues were (1) a lack of organizational unity; (2) inconsistent application of policies and procedures; (3) a widespread, negative view of the role of supervisors; (4) an insufficient focus on Littleton’s priorities; (5) change was not managed well; and (6) there was no systematic training effort. The case presents background information on these issues, Little Manufacturing, and the parent company, Brooks Industries (BI). Littleton Manufacturing (B) presents the recommendations of the Director of Human Resources and what the HR Process Improvement Team chose to do.

LEARNING OBJECTIVES

The case was developed primarily for use in discussing the management of organizational change and development. Learning objectives are: To learn to apply an open systems model to diagnose complex organizational

issues To understand how organizational problems are interconnected To appreciate how there are different “levels” of causes and that

organizational problems have multiple causes To see constraints on making corrective actions for organizational problems,

especially those arising from being apart (subsystem) of a larger organization To know the importance of what can and cannot be realistically changed, that

an ideal solution is often not possible, and that much of management is working in an “imperfect” world


1. Using an open systems framework, what is your analysis of the causes of the Problems identified by Winslow?

2. In what order would you address the issues identified by Winslow? What would

Your recommended action plan be?3. How much employee involvement should there be in planning for and

implementing any changes at Littleton Manufacturing? Why?

1These teaching notes are taken from notes prepared by the author of the case as shown in the text.



DISCUSSION

1. Using an open systems framework, what is your analysis of the causes of the problems identified by Winslow?

Students can be assigned one of the following readings on the systems framework:

Nadler and Tushman “A Model for Diagnosing Organizational Behavior” (1984) Organizational Dynamics 9, 35-51. Michael Harrison Diagnosing Organizations Newbury Park, CA: Sage, 1988. Peter Senge The Fifth Discipline New York: Doubleday, 1990. [Read the systems concepts.] Gordon Lippitt Implementing Organizational Change San Francisco: Jossey-Bass, 1985. [Read the chapter “How to Diagnose an Organization’s Need for Change.”]

If you use the Nadler and Tushman article, then ask students to identify inputs, outputs, organizational components, and problematic fits at Littleton. Appendix 1 offers an example of how the systems framework can be used to identify those factors. It is only meant to be illustrative--examples from the case are not given for all of the components mentioned in the Nadler and Tushman framework. Appendix 2 is a listing of some of the problematic fits at Littleton.

2. In what order would you address the issues identified by Winslow? What would your recommended action plan be?

After noting differences and similarities between lists of students, they can be asked “How did you decide which problems to address first?” The instructor can then use the students’ responses to inductively generate a list of criteria to use in prioritizing problems to address. The following questions will likely be included:

1. How will addressing the problem improve the organization’s effectiveness? What will be the payoff? Can the payoff be quantified? If not, is it important?

2. How difficult will it be to resolve the problem? Will it be a short-term process or long-term?

3. Who are the stakeholders and how will their interests be affected by the change?

4. Do we have adequate information about the issue and is it reliable?5. How much consensus is there on the cause(s) of the problem and the

need to act?6. Do we have the resources to solve the problem?7. Is the problem under our control?8. Do we have the skills or knowledge to solve the problem?9. Will it help us achieve our mission and business goals? Is there an urgent



business need to correct the problem?10.Are people ready for the change?

One student can be asked to explain his/her action plan (or part of it), followed by a discussion of the class’s reaction to the plan. Since most students will probably not have had the experience of being responsible for implementing organizational change, it will help to encourage them to think in concrete and specific terms. The interconnectedness of the issues and the multiple causes of problems makes Littleton complex to diagnose and manage. However, this interconnectedness and multiple causality also means that changes can have multiple, cascading effects. A change in one area can potentially ameliorate several problems at once. For example, improvements in Littleton’s training efforts could improve enforcement of policies and procedures and also contribute to improving how supervisors are perceived.

Priorities for addressing the six issues could be:1. Inconsistent application of policies and procedures2. Role of supervisors3. Insufficient focus on priorities4. Lack of systematic training5. Poor management of change 6. Lack of organizational unity

Aside from corrective actions to address these specific issues, there are some overall changes that need to be made. Change the composition of the HR PIT to include hourly, supervisory, and union representation. These are all major stakeholders in the decisions in these areas, including them is consistent with the principles of TQM, and they have valuable information that could contribute to a sound course of action. Involving them will be more likely to ensure their commitment to a solution. A rotating membership with two-year, staggered terms would work effectively.

Other overall changes would include: Conduct an assessment of the value of the ongoing meetings that

managers, supervisors, and hourly employees must attend on a regular basis. Eliminate those that are redundant or not effective. Try to reduce the number of meetings.

Try to set realistic job goals, such as productivity targets. Where possible, get input from the person who will be doing the job as to how realistic it is.

Review the amount and kind of data collected for control purposes. Consider whether or not it is necessary. Try to reduce the amount of data collected and the resulting reports.

Have more hourly involvement and contact with managers, both formally and informally. Encourage more MBWA by managers.



Specific corrective actions for the six issues dealing with inconsistent application of policies and procedures are recommended as well. The PIT could first tackle the issue of inconsistent enforcement of work rules. While there are different opinions offered as to the causes of this problem, an improvement seems largely under the control of management; it would constitute a concrete, “easy win;” would bolster the role of supervisors; and, in particular, it is a change that would directly and immediately improve productivity and lower costs. The fact that a dollar amount has been attached to the cost of some of these inconsistencies would make it easy to garner support for any corrective action. This change would also lessen the sense of inequity concerning how the two sides were managed.

3. How much employee involvement should there be in planning for and implementing any changes at Littleton Manufacturing? Why?

There are at least three reasons for having a considerable amount of employee involvement in the process and content of changes at Littleton:

1. The QIS is based on it. The entire culture of Littleton needs to utilize widespread employee involvement or the QIS will be of limited value. As it is, many employees seem to be getting inconsistent messages.2. People want more involvement. In particular, this is consistent with the values of the younger workforce.3. The documented benefits of participation--more commitment to change, greater use of employee expertise, a greater sense of meaning in work, increased problem-solving abilities of those involved, etc.

One question to consider in this discussion is “Would increased employee involvement fit the culture at Littleton, especially given the management style and philosophy of senior managers? This could lead into a discussion of whether or not anything should and could be done to make the management philosophy more congruent with increased employee involvement and this QIS.

As a general process, these steps may be taken:1. Gather supervisors from both sides together to discuss their perception of the problem and get their suggested solutions. In particular, the issue of whether the problem is due to a lack of knowledge, skill, attitude, or personality trait needs to be clarified.2. Have a group, or several groups, or hourly employees meet to discuss the problem and recommend solutions. Members should come from both sides of the plant and from different departments. Repeat the process with managers. These meetings would be facilitated by HR staff.3. The HR PIT reviews the results and develops a course of action to recommend to the executive staff.

APPENDIX 1



An Application of the Systems Model of Little Manufacturing Inputs

An underlying factor in a number of the problems is the external environment that Littleton operates within, especially the influence of the parent company--BI. Littleton is a subsystem within the larger BI system and is, thus, affected by the conditions and actions of BI. This places a number of organizational constraints on Littleton.

External environment factorsEconomic and industry sectors include an ongoing recession that affects sales of both BI and Littleton, and increasing competition at home and abroad.

Strategy: The Relationship of BI to Littleton Manufacturing1. BI uses the components side of Littleton to supply all of its other plants with various parts. This dependency of BI on Littleton meant that BI paid close attention to how Littleton was doing. In part this meant that BI was willing to mandate Littleton to make certain changes, e.g. starting the QIS and using external consultants to review its operations.2. Fabrication is now considered a “non-core” business by BI, according to Dan Gordon. Indirectly, this increases concerns about job security for Fabrication managers and probably affects their feelings about the Components side of the plant.3. BI seems to use Littleton as a cash-cow. This was demotivating to Littleton managers and created a sense of their destiny being out of their control. 4. BI cuts back resources available to Littleton in times of scarcity, e.g. capital, raises, and personnel.5. The fact that the Components side has a ready-made market in the other BI plants while the Fabrication side competes on the open market contributes to Fabrication mangers being more entrepreneurial. This adds to the sense of differences between the two sides.

ResourcesA lack of money resulted in low raises, which demoralized salaried personnel, less capital for new equipment, less money for changes suggested by hourly workers, and inadequate training.Cutbacks in plant personnel resulted in doing more with less, which resulted in more stress due to job overload and time pressure, concerns about the maintenance of machinery, not enough supervisors to prevent some people from loafing, and not having enough people which placed more pressures on managers to act vs. reflect and plan.

Past Management HistoryThe bringing of the Components business to Littleton in 1984 brought in new managers with a different way of doing things. The original manager of the Components side did not seem to care if his way of doing things fit in with the established culture. This legacy contributed to the sense of



disunity at the plant and the lack of consistency in enforcement of policies and procedures.



OutputsGroup

Different feelings of the two sides of the plant produced by the perception that one was a “country club” and that financially, the Fabrication side was doing better than the Components side. Supervisors in particular were negatively affected by conditions at the plant. Absenteeism was higher on one side than the other.

Organizationala. Comparatively speaking, Fabrication was doing well financially and

the Components side not so well.b. Although costs had been reduced, it seems that they could have

been reduced more, according to the plant manager.c. Absenteeism and turnover were unusually low for a manufacturing

industry. This may have been due to the lack of job opportunities in the region, a condition exacerbated by the recession.

d. Although most employees interviewed agreed that quality had improved and the plant seemed to be producing relatively high quality products, the comments about quality suggest that there is still room for improvement.

e. Littleton was having a hard time matching the lower costs of the competition’s products.

f. There was widespread frustration with how change was managed.g. People were unsure about the future direction of the plant and

there was anxiety about the possibility of more layoffs.h. It can be inferred that morale was low, except at higher

management levels, and that employees were experiencing considerable stress.

The following key organizational components can be analyzed as well:Formal arrangements--organizational design, reward system, control system, work environment, HR systems. Informal organization--leadership, intergroup behavior, communication patterns, patterns of influence. People--demographics, personality of key players, knowledge, skills and experience.

APPENDIX 2

Some Problematic Fits

Individual and Formal Organization1. People at all levels felt that their needs for information were not being

met by the formal communication mechanisms, such as the Operations Review meetings.

2. Supervisors and hourly employees wanted to be more involved in decision-making and planning for change. This lack of involvement



sent a message of low status to those left out.3. Salaried employee’s needs for rewards were not being met.4. People’s needs to feel part of a unified organization were not being

met.Individual and Task

1. People at all levels were concerned about the lack of training, especially for supervisors.

2. There was a widespread feeling of job overload and time pressure.3. Some thought supervisors were reluctant to discipline people and

enforce work rules because they did not want to hurt people’s feelings.

Individual and Informal Organization1. The inconsistencies in enforcement of policies and procedures were

incompatible with the hourly employees needs for equitable treatment.2. Many hourly workers found the results of the grapevine frustrating

their needs for reliable information.Formal Organizational Arrangements and Task

1. Many perceived the QIS as requiring too many meetings, which took time away from hourly employees for production and resulted in supervisors not having enough time to on the floor.

2. The requirements for numerical data to measure performance resulted in the supervisors having considerable paperwork to do, which prevented them from being out on the factory floor.

Informal and TaskThe lax enforcement of work rules was reducing productivity and costing the plant money.

Informal and Formal Organizational Arrangements1. There was inconsistent application of the formal policies and

procedures from one side of the plant to the other and from supervisor to supervisor.

2. There were a number of inconsistencies between the informal and formal organization which caused many employees to question the plant’s commitment to the QIS and its principles. First, there seemed to be a gap between the employee involvement required for a total quality management system (QIS) and the predominant, top-down management style of the executive staff. Although the plant had a formal total quality management system for several years, it seemed that many of the senior managers were carrying the baggage of a more authoritarian management style. The fact that the HR PIT was composed entirely of managers, with no supervisors or hourly employees, is evidence of this traditional, top-down approach. In addition, in some departments, at the end of the month, when productivity reports were due, quality seemed to get sacrificed to quantity.

The lack of trust and respect of hourly employees implicit in the jelly-bean



theory of management is further evidence of a culture in which hourly workers did not have a certain status. The underlying metaphor seems to be that hourly workers are uncomprehending animals with an insatiable appetite that managers, who control the “goodies,” must be on guard against.

INTEGRATIVE CASE 12.0Hartland Memorial Hospital (A): An Inbox Exercise

OVERVIEW

Overriding the simulation are issues around values and work-family balance, i.e., juggling multiple demands, both job-related and non-job related. The inbox exercise is done under a time constraint, and is intended to give insight into organizational dynamics and the pressures and conflicts affecting a busy hospital senior manager. It is designed to be carried out individually, and then discussed in small groups prior to discussion of the relevant issues in the class as a whole.

OBJECTIVES

This “inbox” simulation requires understanding and addressing a number of managerial/organizational issues in the case, including: Management of information overload Priority setting Rapid decision-making Filtering of information Delegation Understanding organizational politics Multi-tasking Communication

ACTIVITIES

1. Individual students review the “inbox” and complete the Inbox Work Sheet—see below—under a time constraint of one hour. (Less than one hour may also be appropriate.)

2. Small groups get together and share their Work Sheet results and come up with a consensus result, discussing why individual responses might have varied. The time frame around small group discussion can be 30-40 minutes.

3. Discuss results in class. What disagreements are there on priorities, and response modes? If small group discussion was also incorporated, how difficult was it to reach consensus? (Experience with the case has shown that



individual positions on priorities are generally strongly held, especially regarding the work-family balance.) Discussion/debriefing normally can be accomplished in 15-20 minutes, depending upon the number of small groups, if any.


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