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MANAGEMENT AND ORGANISATIONAL BEHAVIOUR 7E Mullins Pearson Education 2005

Case Title Source, Geographical and Case Decision Issue Number, Industry Setting, Length, Company Size, Teaching Timeframe Note Chapter 2: The Nature of Organisational Behaviour Management by HBR Article Organizational Behaviour In this 1970 classic HBR article, Whose Reprint # and Leadership Harry Levinson shares practical Objectives? R0301H 9p insights into the mysteries of (HBR Classic) motivation and takes a fresh look at the use and abuse of the most powerful tools for inspiring and guiding complex organizations. He argues that to motivate people successfully, management must focus on the question, "How do we meet both individual and organizational requirements?" When we make assumptions about individual motivations and increase pressure based on them, we ignore the fact that people work to meet their own psychological needs. Commitment must derive from the individual's wishes to support the organization's goals. Yet, the individual's desires are entirely absent from most performance measurement systems; managers assume that these desires are perfectly aligned with corporate goals and that if they're not, the individual should move on. Self- motivation occurs when individual needs and organizational requirements converge. Successful management systems begin with the employee's objectives. The manager's task is to understand the employee's needs and then, with the employee, assess how well the organization can meet them. GE's Two- HBSP United States, Global; GE is faced with Welch's Decade # 9-399-150 industrial conglomerate; impending retirement and the Transformation: 24p $100 billion revenues; question on many minds is Jack Welch's 293,000 employees; 1981- whether anyone can sustain the Leadership 1998 blistering pace of change and growth characteristic of the Welch era. After briefly describing GE's heritage and Welch's transformation of the company's business portfolio of the 1980s, the case chronicles Welch's revitalization initiatives through the late 1980s and 1990s. It focuses on six of Welch's major change programs: The "Software" Initiatives, Globalization, Redefining Leadership, Stretch Objectives, Service Business Development, and Six Sigma Quality. Teaching Purpose: Can be used to develop multiple lessons, including corporate strategy development, transformational change, management and leadership, and corporate renewal. Southwest Case HR1A 24p United States; airlines; In 1994 both United Airlines and Airlines: Using $2.2 billion revenues; Continental Airlines launched low- Human 12,000 employees; 1994 cost airlines-within-an-airline to Resources for compete with Southwest Airlines. Competitive From 1991 until 1993 Southwest Advantage (A) had increased its market share of the critical West Coast market from 26% to 45%. This case considers how Southwest had developed a sustainable competitive advantage and emphasizes the role of human resources as a lever for the successful implementation of strategy. Asks whether competitors can successfully imitate the Southwest approach. Southwest Case # HR1B United States; airlines; During a summer executive Airlines: Using 7p $2.2 billion revenues; program for human resource Human 12,000 employees; 1994 executives, the (A) case was Resources for assigned. After reading the case, Competitive a study group of four executives Advantage (B) decided that the description in the (A) case was too positive and could not be accurate. To test this, the four conducted an impromptu field study of the Southwest station in San Jose. These executives interviewed six employees on duty. They reported their findings during the case discussion the following day. This case is based on that report. Southwest Teaching Note United States; airlines; Airlines: Using # HR1T 3p $2.2 billion revenues; Human 12,000 employees; 1994 Resources for Competitive Advantage (A) and (B), Teaching Note Understanding HBR Article Human resources Nearly all areas of business--not “People” People Reprint management just sales and human resources-- #R0406E 9p call for interpersonal savvy. Relational know-how comprises a greater variety of aptitudes than many executives think. Some people can "talk a dog off a meat truck," as the saying goes. Others are great at resolving interpersonal conflicts. Some have a knack for translating high-level concepts for the masses. And others thrive when they're managing a team. Because people do their best work when it most closely matches their interests, the authors contend, managers can increase productivity by taking into account employees' relational interests and skills when making personnel choices and project assignments. After analyzing the psychological tests of more than 7,000 business professionals, the authors identified four dimensions of relational work: influence, interpersonal facilitation, relational creativity, and team leadership. This article explains each one and offers practical advice to managers--how to build a well-balanced team, for instance, and how to gauge the relational skills of potential employees during interviews. Understanding these four dimensions will help you get optimal performance from your employees, appropriately reward their work, and assist them in setting career goals. It will also help you make better choices when it comes to your own career development. To get started, try the authors' free online assessment tool, which measures both your orientation toward relational work in general and your interest level in each of its four dimensions. Chapter 3: Approaches to organisation and management Is Management HBR Reprint Negotiations Frederick Taylor's traditional Still a Science? Article scientific approach to # 92603 8p management promised to provide managers with the capacity to predict and control the behavior of the complex organizations they led. But the world most managers now inhabit often appears to be unpredictable and even uncontrollable. In the face of this more volatile business environment, the old-style mechanisms of "scientific management" seem positively counterproductive. Just as managers have become more preoccupied with the volatility of the business environment, scientists have also become preoccupied with the inherent volatility--the "chaos" and "complexity"--of nature. They are developing new rules for complex behavior in physical systems that have intriguing parallels to the kind of organizational behaviors today's companies are trying to encourage. Why Hard- HBR Article General management Theory often gets a bum rap Nosed Reprint among managers because it's Executives # R0309D associated with the word Should Care 7p "theoretical," which connotes About "impractical." But it shouldn't. Management Because experience is solely Theory about the past, solid theories are the only way managers can plan future actions with any degree of confidence. The key word here is "solid." Gravity is a solid theory. As such, it lets us predict that if we step off a cliff we will fall, without actually having to do so. But business literature is replete with theories that don't seem to work in practice or actually contradict each other. How can a manager tell a good business theory from a bad one? The first step is to understand how good theories are built. They develop in stages: gathering data, organizing it into categories, highlighting significant differences, then making generalizations explaining what causes what, under which circumstances. For instance, professor Ananth Raman and his colleagues collected data showing that bar code-scanning systems generated notoriously inaccurate inventory records. These observations led them to classify the types of errors the scanning systems produced and the types of shops in which those errors most often occurred. Recently, some of Raman's doctoral students worked as clerks to see exactly what kinds of behavior cause the errors. From this foundation, a solid theory predicting under which circumstances bar code systems work and don't work is beginning to emerge. Once we forgo one- size-fits-all explanations and insist that a theory describes the circumstances under which it does and doesn't work, we can bring predictable success to the world of management. Spin-Out Business Organizational behaviour The structure of a firm plays a key Management: Horizons Article and leadership role in building an innovative and Theory and # BH088 10p market-driven organization. Due Practice to failures in the structure of companies, growth opportunities are sometimes not fully realized. Spin-out management is a process by which a new or existing part of the organization is diversified from the parent company. The goal is to develop independently related activities that enhance the firm's innovative capabilities while profiting at the same time from the assets of the parent company, thereby improving the staying power of both.

Chapter 4: The Nature of Organisations The Ritz-Carlton HBSP Washington, DC; In just seven days, The Ritz- Hotel Co. #9-601-163 hospitality; $1.5 billion Carlton transforms newly hired 31p revenues; 18,000 employees into "Ladies and Teaching Notes employees; 2000 Gentlemen Serving Ladies and #9-602-113 Gentlemen." The case details a new hotel launch, focusing on the unique blend of leadership, quality processes, and values of self- respect and dignity, to create award-winning service. Teaching Purpose: Allows students to examine innovation and improvement in a service industry. Raises questions of when and how to innovate in a successful service operating system and the challenges of innovation for a brand built on customer experience. Teaching points include the role of leadership and values in creating a culture of service and the need to manage the tension between standardized quality procedures and the cultivation of empowered employees who can customize each interaction to meet the needs of their customers. The People Who HBR Article Organizational behaviour Managers invariably use their Make Reprint and analysis personal contacts when they need Organizations #0206G 8p to, say, meet an impossible Go--or Stop deadline or learn the truth about a new boss. Increasingly, it's through these informal networks-- not just through traditional organizational hierarchies--that information is found and work gets done. But to many senior executives, informal networks are unobservable and ungovernable-- and, therefore, not amenable to the tools of management. As a result, executives tend to work around informal networks or, worse, try to ignore them. When they do acknowledge the networks' existence, executives fall back on intuition--scarcely a dependable tool--to guide them in nurturing this social capital. It doesn't have to be that way. It is entirely possible to develop and manage informal networks systematically, say management experts Cross and Prusak. Specifically, senior executives need to focus their attention on four key role-players in informal networks: Central connectors link most employees in an informal network with one another; they provide the critical information or expertise that the entire network draws on to get work done. Boundary spanners connect an informal network with other parts of the company or with similar networks in other organizations. Information brokers link different subgroups in an informal network; if they didn't, the network would splinter into smaller, less effective segments. And finally, there are peripheral specialists, who anyone in an informal network can turn to for specialized expertise but who work apart from most people in the network. The authors describe the four roles in detail, discuss the use of a well-established tool called social network analysis for determining who these role- players are in the network, and suggest ways that executives can transform ineffective informal networks into productive ones. Mary Kay HBSP Texas; cosmetics; $100 Introduces the student to Mary Cosmetics Inc. #9-481-126 million sales per year; Kay Cosmetics, Inc., its business, 13p 1963-1980 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 anti- Homemade 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; 20,000 at SAS in a time of financial and employees; 1980- organizational difficulty. After 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 re- emerge, and the case concludes with Carlzon wondering if his "second wave" can provide the same impetus that he gained on his first wave. Highlights the power of a clear and well- communicated strategic mission (strategic intent), but also explores problems and limits that can arise. Specifically, focuses on the common problem of motivating middle managers who often feel disenfranchised by front line empowerment. What’s a HBR Article Social enterprise & In the wake of the recent Business For? Reprint # ethics corporate scandals, it's time to R0212C reconsider the assumptions 6p underlying American-style stock- market capitalism. That heady doctrine--in which the market is king, success is measured in terms of shareholder value, and profits are an end in themselves-- enraptured America for a generation, spread to Britain during the 1980s, and recently began to gain acceptance in Continental Europe. But now, many wonder whether the American model is corrupt. The American scandals are not just a matter of dubious personal ethics or of rogue companies fudging the odd billion. And the cure for the problems will not come solely from tougher regulations. We must also ask more fundamental questions: Whom and what is a business for? And are traditional ownership and governance structures suited to the knowledge economy? According to corporate law, a company's financiers are its owners, and employees are treated as property and recorded as costs. But whereas that might have been true in the early days of industry, it does not reflect today's reality. Now a company's assets are increasingly found in the employees who contribute their time and talents rather than in the stockholders who temporarily contribute their money. The language and measures of business must be reversed. In a knowledge economy, a good business is a community with a purpose, not a piece of property. Corruption in HBSP Business and government Explores various aspects of International # 9-701-128 corruption in international Business (A) 10p business. This case is organized in two sections. The first section provides a broad discussion of the ethical, business, and legal aspects of corruption. The second section provides a series of "caselets" that are designed to promote discussion of how students would act in particular situations, as well as the potential costs and benefits of these actions. Teaching Purpose: To introduce students to the issues surrounding corruption in international business. Corruption in HBSP Business and Focuses on efforts to combat International # 9-701-129 government corruption. Approaches include Business (B) 10p international laws, international agreements, efforts by international development organizations, and private efforts by firms and non-governmental organizations. Teaching Purpose: To introduce students to the issues surrounding corruption in international business. Dawn Riley at HBSP San Francisco, CA; sports; Dawn Riley is the CEO/Captain of America True # 9-401-006 start-up; 100 employees; America True, the first coed (A) 17p 1999-2000 syndicate to race for the America's Cup. Over three years, based on her vision for America True, she built the syndicate from scratch, bringing on investors and sponsors, designing and building a boat, and hiring a sailing crew to race it. In June 1999, Riley must decide how to handle the San Francisco office now that America True's base of operations is moving to Auckland, New Zealand, where racing will begin in four months. She is facing pressure to phase out the office to cut down on costs, but Riley believes that the people in San Francisco and the work they are doing are key to her vision for America True. She must weigh the tension between immediate pressures to win and the longer- term sustainability of her vision. Teaching Purpose: To demonstrate the challenges of leading a start-up: the importance of communicating a vision, aligning people around that vision, and executing on it. To explore issues of gender and power. Chapter 6: The Nature of Management The Ritz-Carlton HBSP Washington, DC; In just seven days, The Ritz- Hotel Co. #9-601-163 hospitality; $1.5 billion Carlton transforms newly hired 31p revenues; 18,000 employees into "Ladies and Teaching Notes employees; 2000 Gentlemen Serving Ladies and #9-602-113 Gentlemen." The case details a new hotel launch, focusing on the unique blend of leadership, quality processes, and values of self- respect and dignity, to create award-winning service. Teaching Purpose: Allows students to examine innovation and improvement in a service industry. Raises questions of when and how to innovate in a successful service operating system and the challenges of innovation for a brand built on customer experience. Teaching points include the role of leadership and values in creating a culture of service and the need to manage the tension between standardized quality procedures and the cultivation of empowered employees who can customize each interaction to meet the needs of their customers. Cambridge HBSP Boston, MA; consulting; $85 Describes the situation facing the Consulting # 9-496-023 million revenues head of a rapidly growing Group: Bob 5p industry-focused group within a Anderson consulting company. Highlights the dilemmas of being a "producing manager" (i.e., a professional who has both individual production as well as management responsibilities). Issues raised include: delegation, developing subordinates, developing an agenda, and building an organization. Teaching Purpose: Demonstrates dilemmas of the producing manager's role. A Letter to the HBR Article Organizational behaviour Beyond the recent accounting Chief Executive Reprint and leadership scandals, something is wrong with #R0210G the way most companies are 6p 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 at HBSP Boston, MA; office supplies; Jeanne Lewis, after six years with Staples, Inc. (A) # 9-400-065 $5 billion revenues; 30,000 Staples, Inc., is promoted to (Abridged) 14p employees; 1997 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 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. Jeanne Lewis at HBSP Boston, MA; office supplies; Supplements the (A) case. Staples, Inc. (B) # 9-499-042 $5 billion revenues; 30,000 4p employees; 1997 Bill Gates and HBSP United States; computer In July 1991, Microsoft has the # 9-392-019 software; large; $1.8 billion achieved record growth and Management of 19p revenues; 1991 profitability in the PC software Microsoft 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. Managing HBSP Rochester, NY; copiers; Describes a manager's role in Xerox’s #9-490-029 Fortune 500; 40 employees developing a staff group Multinational 20p responsible for enhancing the Development efficiency of Xerox's worldwide Center 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. Chapter 7: Managerial Behaviour and Effectiveness JetBlue HBSP New York, NY; airlines; JetBlue Airways shows how an Airways: # 9-801-354 start-up; 950 employees; entrepreneurial venture can use Starting from 20p 2000 human resource management, Scratch Teaching Notes specifically a values-centered # 9-801-386 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. Microsoft’s Vega HBSP Redmond, WA; computer Describes Microsoft's human Project: # 9-300-004 software; $20 billion resource philosophies and policies Developing 19p revenues; 31,000 and illustrates how they work in People and employees; 1975-1998 practice to provide the company Products 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). Mark Twain HBSP St. Louis, MO; banking; Describes the history, Bancshares Inc # 9-385-178 $750 million assets; 1984 management, and organization of 18p 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 Failure- HBR Organizational behaviour "The fastest way to succeed," Tolerant Leader Article Reprint and leadership IBM's Thomas Watson, Sr., once # R0208D said, "is to double your failure 6p 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 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 failure- tolerant 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. The HBSP United States; food Senior functional officers Chattanooga Ice # 9-498-001 products; $150 million (marketing, manufacturing, Cream Division 11p revenues; 750 employees; research & development, control, 1996 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. Chapter 8: The Nature of Leadership Meg Whitman at HBSP San Jose, CA; Internet; Meg Whitman takes over as CEO eBay Inc # 9-401-024 1999 of eBay from the founder. She 32p must figure out how to lead the Teaching Notes company through a stage of # 9-400-047 phenomenal growth without compromising eBay's unique external customer culture and internal culture--its key success factors. A rewritten version of an earlier case. Crucibles of HBR What makes a great leader? Why Leadership Article do some people appear to know # 0209B instinctively how to inspire 7p employees--bringing out their confidence, loyalty, and 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. Wolfgang Keller HBSP Europe; brewery; mid-size; Raises issues concerning at Konigsbrau- # 9-498-045 $100 million sales performance evaluation, Hellas A.E 18p performance appraisal, managing ineffective performance, and conflicts in management style. A rewritten version of an earlier case. Taran Swan at HBSP Miami, FL; cable television; Eighteen months after launching Nickelodeon # 9-400-036 1998 Nickelodeon Latin America, Latin America 25p general manager Taran Swan (A) Teaching Notes must leave the company's Miami # 9-400-037 headquarters for her New York 5p 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. Why Should HBR We all know that leaders need Anyone be Led Article # vision and energy, but after an by You? R00506 exhaustive review of the most 8p influential theories on leadership-- as well as workshops with thousands of leaders and aspiring leaders--the authors learned that 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." What Makes a HBR When asked to define the ideal Leader? Classic Article leader, many would emphasize # traits such as intelligence, R0401H toughness, determination, and 10p 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--self- awareness, 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. Chapter 9: Individual Differences Management of HBR Managers may most effectively Differences Article approach the complex problems of # 60612 individual differences by first 9p assuming that the differences are neither good nor bad, and that no one right solution exists. 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 – HBSP Philadelphia, PA; banking; Yvette Hyater-Adams, senior VP of Adams and # 9-401-023 2,000 employees; 1993- CoreStates Bank, and CEO Terry Terry Larsen at 15p 1998 Larsen reflect on their five-year CoreState mentor-protege relationship. They Financial Corp 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. Bob Fifer HBSP United States; consulting Explores the life and concerns of # 9-495-013 Bob Fifer, HBS class of 1979 and 11p CEO of Kaiser Associates. Explores Teaching Note the many influences on Bob's # 9-498-063 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 self- concept. Highlights the career- related 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 self- redirection 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. Avon Products HBSP New York, NY; beauty The general manager of Avon (A) and (B) # 9-301-059 products; $5 billion Mexico, Fernando Lezama, must 22p revenues; 33,900 decide whether to promote a HBSP employees; 1992-1998 woman to the position of vice #9–301-060 president of sales. If appointed, 14p the candidate would be the first female in all of Latin America to hold an executive position and one 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. Julia Stasch, HBSP Chicago, IL; construction; A successful woman executive Business # 9-993-015 1988-1993 attempts to integrate women into Enterprise Trust 5p the construction trade in Chicago. (A) # 9-993-013 Julia Stasch rose from office Case assistant to president and chief Teaching Note operating officer of a major #9-993-016 Chicago real estate firm, Stein & 10p 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. Chapter 10: The Nature of Learning Building a HBR Reprint Continuous improvement Learning # 93402 programs are proliferating as Organization 14p 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. Framing for CMR Article The decision to adopt a new Learning: # CMR 247 technology in the health care Lessons in 23p setting is merely the first step in Successful an implementation journey. Technology Whereas some new technologies Implementation 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. Speeding up HBR Article Cardiac surgery is one of Team Learning # R0109J medicine's modern miracles. In an 7p 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. The Anxiety of HBR Article Despite all of the time, money, Learning: An # R0203H and energy that executives pour Interview with 7p into corporate change programs, Edgar H Schein 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 world-renowned 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. Capitalising on HBR Article By making the most of Capabilities # R0406J organizational capabilities-- 8p 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 customer- related 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 Process of Perception Jensen Shoes: HBSP United States; shoes; $65 Jane Kravitz (Caucasian female), Lyndon # 9-395-121 million revenues; 4,500 strategic product manager, and Twitchell’s Story 8p employees; 1994 Lyndon Twitchell (African Teaching Note American male), a member of her # 9-396-017 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. Jensen Shoes: HBSP United States; shoes; $65 Jane Kravitz (Caucasian female), Jane Kravitz’s # 9-395-120 million revenues; 4,500 strategic product manager, and Story 7p employees; 1994 Lyndon Twitchell (African Teaching Note American male), a member of her 9-396-017 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 in China Ivey/UWO China; semiconductors; Intel PRC was a division of Intel # 99C007 small; 1998 Corp., a U.S. $20 billion 11p semiconductor manufacturer. A Teaching Note newly appointed division head # 899C07 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. Chapter 12: Work Motivation and Rewards Mary Kay HBSP Dallas, TX; cosmetics; mid- Describes the incentive system by Cosmetics Inc: # 9-190-103 size; $400 million sales; which Mary Kay Cosmetics Sales Force 16p 1989 motivates the sales force of Incentives Teaching Notes 200,000 independent agents who # 9-191-198 comprise the firm's only 10p distribution channel. Illustrates Case the powerful effect on sales-force # 9-190-122 behavior that results when 2p 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. How to Motivate HBR Reprint Managers who motivate with Your Problem # 0301D incentives and the power of their People 8p 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 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. One More Time: HBR Reprint It's a manager's perennial How Do you #R0301F question: "How do I get an Motivate 9p employee to do what I want?" The Employees? 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. HCM Beverage Ivey Vietnam; food and kindred Mark Johnson, general manager Co School/UWO products; mid-size; 1997 of HCM Beverage Co., must # 98C003 decide what to do about the 17p 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 Nature of Work Groups and Teams The Overhead HBSP United States; household A middle manager is about to Reduction Task # 9-400-026 appliances; mid-size; 1977- meet with his boss to discuss her Force 7p 1999 request that he head up a task Teaching Note force to determine how overhead # 9-400-027 can be reduced by 20%. He must 17p 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. Brinkerhoff HBSP Alberta, Canada; oil drilling; Presents a study of two oil rigs International # 9-494-110 $27 million revenues; 1993 and their team relationships (A) 15p within a context of dissension in Case lower management ranks and a # 9-494-111 president who is trying to expand 1p the business in a changing Teaching Note economy. Teaching Purpose: To # 9-496-041 show the importance of teamwork 6p at the bottom of a high-skill, dangerous business. The HBSP United States; food Senior functional officers Chattanooga Ice # 9-498-001 products; $150 million (marketing, manufacturing, Cream Division 11p revenues; 750 employees; research & development, control, 1996 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. Technology for Note The importance of groups in Teams # 9-196-008 organizations has long been 10p 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 Rubbermaid, a consumer products at Rubbermaid # 9-897-165 products/plastics company widely praised for its Inc 26p manufacturer; $2.3 billion innovation, has instituted a revenues; 14,500 company-wide experiment to employees; 1996 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 cross-functional business teams; the difficulty of implementing cross-functional 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. Datavision (A) HBSP Burlington, MA; computers; Depicts a "team-building" # 9-495-046 $3 million revenues; 500 intervention by an organizational Case employees; 1993 consultant at a small computer 15p company. Teaching Purpose: # 9-495-047 Should promote discussion 3p surrounding such techniques. Case # 9-495-048 2p Teaching Note # 9-498-030 12p Speeding Up HBR Cardiac surgery is one of Team Learning Reprint # medicine's modern miracles. In an R0109J operating room no larger than 7p 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; Polycom is a rapidly growing Visualising # 9-601-073 telecommunications; $500 maker of video conferencing and Culture 16p million revenues; 500 teleconferencing equipment. employees; 2000 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. Do you have a HBR For most companies, organization well-designed Reprint # design is neither a science nor an organisation? R0203K art; it's an oxymoron. 7p 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 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. Why Hierarchies HBR Hardly anyone has a good word to Thrive Article # say about hierarchies. They R0303G routinely transform motivated and 6p 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, 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. Trojan Field Case Canada; electric, gas, and A group of Trojan Technologies, Technologies # 99M019 sanitary services; small; Inc. employees grappled with the Inc: 8p 1998 issue of how to structure the Organizational business to interact effectively Structuring for with its customers and manage Growth and the company's dramatic growth. Customer The London, Ontario manufacturer Service 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. Chapter 16: Patterns of Structure and Work Organisation Novartis HBSP Switzerland; In June 2000, Novartis Pharma: The # 9-101-030 pharmaceuticals; $21 billion reorganized its pharmaceutical Business Unit 21p revenues; 70,000 business to form global business Model employees; 2000 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. Buck & Pulleyn’s HBSP Rochester, NY; advertising; In 1993, the firm began to move Team # 9-497-007 small; $26 million revenues; from a traditional hierarchical Management 9p 70 employees; 1996 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 to deal with these issues. USA TODAY: HBSP Virginia; newspaper; $700 Describes the evolution of USA Pursuing the # 9-402-010 million revenues; 3,000 TODAY Online, the electronic Network 18p employees; 2000 version of the newspaper, within Strategy (A) 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. Eli-Lilly – 1998 HBSP Global; pharmaceuticals; Examines major issues faced by (B): Emerging # 9-399-174 Fortune 500; $12 billion Eli Lilly as it evaluates the Global 15p revenues; 10,000 appropriateness of a focused Organization employees; 1998 matrix organization with extensive use of cross-functional teams. Chapter 17: Technology and Organisation Napster and Ivey/UWO Global; music; 2000 The music industry has changed MP3: Redefining # 901M02 dramatically as a result of the Music 22p technological and business Industry 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. Chaparral Steel: HBSP Texas; steel; 900 One of the nation's foremost mini- Rapid Product # 9-692-018 employees; 1983-1991 mills' core competence is the and Process 17p rapid realization of technology Development 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. Technology HBR In many industries, superior Integration: Article technology integration--the Turning Great # 97304 approach used to choose and Research into 11p refine the technologies employed Great Products 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 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. Technology and HBR Article For most of the last 50 years, Human # R0309B technology knew its place. It's Vulnerability 7p 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 high- tech 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. Chapter 18: Job Satisfaction and Work Performance Donna Klein and HBSP Washington, DC; $8.9 In the early 1990s, Donna Klein, Marriott # 9-996-057 billion revenues; 170,000 Director of Work/Life programs for International 4p employees; 1994-1996 Marriott International, surveyed Inc (A) and (B) hotel and resort managers and HBSP found they increasingly were # 0-996-058 relied upon to help employees 8p cope with the stresses of their personal lives. Immigration, child TN custody, spousal abuse-- # 9-996-059 numerous personal issues were 7p requiring up to 50% of managers' time and fueling extremely high turnover among the company's over 100,000 lower-wage 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 one- on-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: HBSP United States; staffing; $56 MacTemps is a provider of Building # 9-497-005 million revenues; 130 temporary workers skilled in Commitment in 20p employees computer graphics and database the Interim management. Unlike many Workforce TN temporary agencies that treat # 9-497-065 temps as a commodity, MacTemps 15p 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. Nordstrom: HBSP West Coast; retailing; 1989 In 1989, the performance Dissension in # 9-191-002 measurement systems and the Ranks? 24p compensation policies of Nordstrom Department Stores HBSP unexpectedly came under attack # 9-192-027 by employees, unions, and 2p government regulators. The case describes the "sales-per-hour" TN monitoring and compensation # 9-692-085 system that many believed to be 12p 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. SMA: Micro- HBSP Switzerland; electronics The Micro-Electronic Products Electronic # 9-400-034 manufacturing; 1,200 Division of SMA has financial and Products 19p employees; 1990 organizational problems. Conflict Division (A) and lack of coordination exist between functional groups. Employees do not have a sense of direction and morale is low. The 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. Pull the Plug on HBR Article Stress is rampant, stress is Stress # R0307J growing, and stress hurts the 6p 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. Chapter 19: Human Resource Management Compensation HBSP Long Island, NY; Describes a company's struggles and # 9-800-290 semiconductors; $6 billion in implementing a subjective Performance 26p revenues; 6,000 performance rating system for its Evaluation at employees; 1994-1998 employees. In particular, it Arrow describes the difficulties faced by Electronics the CEO in getting managers to combat "ratings inflation"--that is, to produce numerical ratings that are both differentiated and "not too high." The Firmwide HBSP New York, NY; investment Describes Morgan Stanley's 360 degree # 9-498-053 banking; $1 billion firmwide, 360-degree Performance 16p revenues; 2,000 performance evaluation process. Evaluation employees; 1993-1995 Evaluation forms are included as Process at TN exhibits. Teaching Purpose: To Morgan Stanley # 9-400-078 introduce students to a 360- 12p degree performance evaluation process. Human HBSP California; high tech; large; Provides an overview of the Resources at # 9-495-051 $25 billion revenues; human resource policies and Hewlett-Packard 27p 90,000 employees; 1979- practices applied by Hewlett- (A) and (B) 1992 Packard (HP). Discusses HP's HBSP reactions as an organization to # 9-495-052 changes in its business 7p environment. As such, it is an opportunity to analyze HP's TN practices, and how they have # 9-497-022 been affected through the years in 7p all four policy areas: stakeholder influence, flows, rewards, and work systems. They’re Not HBR Article In this essay, business thinker Employees, # R0202E Peter Drucker examines the They’re People 7p 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 fast- growing 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 ever- mounting 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. Verizon HBSP United States; In early 2000, Verizon Communications # 9-101-102 telecommunications; $60 Communications implemented a Inc: 23p billion revenues; 260,000 Human Resources Balanced Implementing a employees; 1996-2000 Scorecard to evaluate the Human effectiveness of and payoffs from Resources human resource management. Balanced This case describes the benefits of Scorecard 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. Chapter 20: Resourcing the Organisation Jet Blue HBSP New York, NY; airlines; JetBlue Airways shows how an Airways: # 9-801-354 start-up; 950 employees; entrepreneurial venture can use Starting from 20p 2000 human resource management, Scratch specifically a values-centered TN approach to managing people, as # 9-801-386 a source of competitive 6p 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. AvantGo HBSP Silicon Valley, CA; high Richard Owen, CEO of AvantGo, is # 9-601-095 technology/wireless/mobile; preparing for a meeting in which 19p 310 employees; 1998-2000 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. The Ritz-Carlton HBSP Washington, DC; In just seven days, the Ritz- Hotel Company # 9-601-163 hospitality; $1.5 billion Carlton transforms newly hired 30p revenues; 18,000 employees into "Ladies and employees; 2000 Gentlemen Serving Ladies and TN Gentlemen." The case details a # 9-602-113 new hotel launch, focusing on the unique blend of leadership, quality processes, and values of self- respect and dignity, to create award-winning service. SUPER VALU HBSP Minnesota; food SUPERVALU examines the Inc: # 0-900-019 wholesale/retail; $17.4 creation and implementation of a Professional 21p billion revenues; 50,000 training program for attracting Development employees; 1999 and retaining college graduates Program TN for the nation's largest wholesale # 9-900-020 food distribution company. It 4p 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. SG Cowen: New HBSP New York; financial Chip Rae, director of recruiting at Recruits # 9-402-028 services; 500 employees; SG Cowen, must decide which 15p 2001 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 Nowadays, with organizations great motivator # R0301J growing ever flatter and 9p 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. Balancing HBR Article Given that organizations are seen Corporate # 92604 more and more as minisocieties, Power: A New 9p the prospect of applying political Federalist Paper 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 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 HBSP Schaumburg, IL; Motorola, a leader in Corporation: # 9-494-140 electronics; Fortune 500; semiconductors and The View from 15p $17 billion revenues; telecommunications, embarked on the CEO Office 120,000 employees 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. Kentucky Fried HBSP Japan, United States; fast Describes the internationalization Chicken (Japan) # 9-387-043 food; large; $2 billion of the Kentucky Fried Chicken Limited 20p revenues; 1970-1983 (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. Chapter 22: Organisation Development Culture Sealed Air HBSP United States, Europe, Asia; Sealed Air Corp.'s CEO and COO Corporation: # 9-398-096 packaging (protective and are considering what approach Globalisation 18p specialty); $800 million they should take to building a and Corporate revenues; 4,200 seamless corporate culture Culture HBSP employees; 1997 worldwide. Anticipating continuing # 9-398-097 growth and expansion, especially 34p 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 at HBSP San Jose, CA; Internet; Meg Whitman takes over as CEO eBay Inc (A) # 9-401-024 1999 of eBay from the founder. She 32p 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. Corning – 1983- HBSP Corning, NY; glass; Fortune Focuses on Jamie Houghton's 96: Transition # 9-401-034 500; $5 billion revenues; efforts to revitalize Corning from at the Top 30p 20,000 employees; 1983- 1983-1996, including the 1996 development of a very strong set Follow on Case of values and culture. The issue # 9-401-035 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. Slade Plating HBSP Michigan; metal products Describes a conflict between the Department # 9-496-018 values and norms of a segment of 11p an internal social system and those of management and the wider culture. Includes decision opportunity. A rewritten version of an earlier case. Campaigning for HBR article Most organizations must change if Change # R0207G they're to stay alive. Change is 5p 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 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. Agilent Stanford GSB technology; $10.8 billion On March 2, 1999, Hewlett- Technologies: 0D1A revenues; 46,000 Packard (HP) announced a plan to Organisational 35p employees; 2000-2001 create a separate company, Change subsequently named Agilent (A) and (B) 0D1B Technologies, made up of HP's 2p 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 Without HBR Article Change or perish is a corporate Pain # R00401 truism, but so is its unhappy 5p 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 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. Getting the HBR Article There's no doubt that companies truth into # R0202K can benefit from workplace Workplace 7p surveys and questionnaires. Good Surveys 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. Rudi Gassner HBSP Global; Explores the roles of CEO Rudi and the # 9-494-055 entertainment/music; large; Gassner and the 9-person Executive 21p $2 billion revenues; 1993 executive committee in leading Committee of BMG International. BMG BMG TN International is the international International # 9-494-122 music subsidiary of Bertlesmann, (A) 27p 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 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. 3M: Profile of an HBSP United States; high Traces the birth and development Innovating # 9-395-016 technology products; of 3M Corp., focusing in particular Company 20p Fortune 500 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.

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