MANAGEMENT 12EKREITNER & CASSIDY

INTERACTIVE ANNOTATIONS

Annotation 1a It’s a Small WorldQuestion: How does this situation illustrate the pros and cons of economic globalization?Economic globalization provides manufacturers with access to parts from the around the world. With increased specialization comes increased efficiency and lower prices. However, this also leads to a higher level of dependence on a complex supply chain. When Iceland’s Eyjafjallajokull volcano erupted in April 2010 air traffic across Europe came to a standstill. This brought the supply chain to a halt as parts and supplies transported by plane were left sitting on the runway. The economic impact included costly manufacturing plant shutdowns and sales delays.

Annotation 1bBack to the Opening CaseQuestion: What evidence of the managerial functions and skills can you detect in the Zappos.com case?Reference figures 1.3 and 1.4. Of the eight functions of management there is clear evidence of Communicating as employees are invited to provide suggestions and feedback related to the core values. Staffing is also involved as they incorporate their core values into the hiring process, particularly the desire to hire people who are humble. Although less obvious, Leading and Motivating are present as well. Employees involved in defining the company’s core values are quite likely to find their work more satisfying and rewarding. Leadership is evident as there is a clear vision and desire to develop and implement the core values with a willingness to sacrifice short-term gains for long-term benefits. They are protecting their company culture and sticking to their values. This would not be possible without strong leadership.

Annotation 1cLearning Under FireQuestion: Why is military combat experience a fertile training ground for managers and entrepreneurs? Use Brian Iglesias as an example as he used his experience as a Marine for inspiration as an entrepreneur. The survival skills he learned during his deployment in Iraq helped him develop the necessary focus and persistent to be successful in business.What can military veterans teach all of us about managing and life in general? As Brian Iglesias demonstrated surviving the horror of war provides perspective and the ability to focus on what is important. In addition, we can all learn about professionalism, planning, preparation, teamwork, vision & mission, working towards a common goal, strategic use of technology, adapting quickly and managing change, resource management, communication, leadership, and overcoming incredible odds.

Annotation 1dGot a Good Business Idea? You’ve Got 45 SecondsWhen answering those seven questions, how good is your information? If your product is new, how accurate can you really be about who the customers are and how likely they are to buy it at your price? Are your cost estimates based on manufacturing, sales, and distribution costs for similar products in a

similar industry or just your best guess based on checking rental rates for industrial space and several key pieces of equipment? What about training employees, company infrastructure, the cost of a skilled sales team, and enough advertising or promotion to get people sufficiently familiar with your product to be interested in buying it?

Why do you suppose entrepreneurs who have successfully started a company before are the first choice of venture capitalists looking to invest their money? Because those people know that having quick answers to those seven questions isn’t enough—you have to have good answers.

Annotation 2a What About Factual Accuracy?Questions: In general, how much do you trust the factual accuracy of historical accounts?

Anyone who has ever played the game “Operator” as a child knows how quickly information can be distorted as it is passed from one person to another. Add the emotions of the moment when a historical event occurs, along with the effect of time passing, and no historical account will ever be completely accurate. Then consider the different perspectives of people in varying roles at the event. To test this, go to your parents and ask about an event that occurred before you were born. Whether you choose a personal event or one of broader significance, you will get two very different accounts.

What is the best way to get the real story? The best way to get the real story of any past incident or period is to collect information from as many credible sources as possible and look for consistencies. In general, however, approach any account with a healthy dash of doubt. Keep in mind that Wikipedia may be a convenient and easy source for research; however, it is not a credible, primary source. Dig a little deeper and find the primary (original) source.

Annotation 2b Piece-Rate PuzzleQuestions: How do you want to get paid? Why?

What kind of a worker are you? Do you tend to stay focused until a task is done, or do you work in spurts followed by periods of unproductive behavior? How long can you concentrate before needing to take a break? Do you tend to work faster than average, or are you the slow and steady one who wins the race? How accurate do you tend to be? Are you good or bad with details? The answers to these questions affect which pay system you would prefer.

If you’re a fast and focused worker who tends toward accuracy in details, the piece rate would be much more favorable. If you need to take your time to be accurate, you would probably benefit more with a straight hourly rate.

Which pay plan is probably better for the library? why?

In terms of library goals, the piece rate is probably the best bet for ensuring both productivity and accuracy.

Annotation 2cCraigie Zildjian - Theory X or Theory Y?Does Craigie Zildjian appear to be a Theory X or a Theory Y manager?

Craigie appears to be a Theory Y manager. Her strategies involve her managers and her employees. This implies that she believes they are capable, committed, and responsible. Every example she gave focused on some responsibility her employees had—from meeting with artists to visiting music stores. The other clue is her constant use of the word “we” She never says, “I” in this discussion but, rather, always focuses on everyone involved.

Annotation 2dWhat type of System is the Zildjian Company ?Zildjian Company is definitely an open system. Customer collaboration goes back decades, as far as 1929, and it continues today as artists visit the plant so the Research and Marketing teams can meet directly with them. Zildjian managers are also very aware of their competition. The remark “careful listening is part of our corporate strategy” is evidence of their awareness that their organization is an open system.

Annotation 2eWhat evidence is there of the contingency approach at Zildjian Company ?Three characteristics of the contingency approach are:

1. An open-system perspective

2. A practical research orientation, and

3. A multivariate approach.

All of these are evident at Zildjian. Bringing in current musicians to talk to the team and sending employees out to music stores to listen both incorporate a focus on the open system perspective. New products such as a titanium-coated cymbal show a practical research focus. Having a focus on numerous core values such as continuous quality improvement, innovation, craftsmanship, etc. show that Zildjian takes a multivariate approach.

Annotation 2fPractical Take-AwaysQuestion: What specific take-away lessons have you learned from studying this chapter that can help you avoid common “rookie” mistakes as a manager?Would you start building a house without some experience with the tools, familiarity with the properties of the materials you were using, and some basic knowledge of how a building is put together? Would you try to take out an appendix without a basic knowledge of anatomy and some experience in wielding a surgical scalpel? How about something simpler? How about driving a car? Do you remember your first time behind the wheel? And that frightening feeling gripped you even after years of observing others driving.

Yet, when it comes to management and organizational behavior, people are thrown into situations with limited (if any) training and experience and are expected to get it right. One of the most critical take-aways is the understanding that there are many approaches and ideas in management and you have to take the time to see what works for you. It takes practice and the maturity to blend theory, experience and the advice of others with your own experience.

Annotation 3a The Inequality DilemmaQuestions: Where do you stand on the debate over “You deserve only what you earn from working” versus “Everyone is entitled to a fair share of the wealth?” Try for a moment to see this debate through a different lens, walk in the other person’s shoes. Consider various perspectives including how a person who works hard for a company for many years and ends up without a job because the company goes out of business. With unemployment rates averaging over 9% this person is quite likely to have a tough time finding another job. Should they receive unemployment benefits and essentially get paid for staying home? Or should they live off what they’ve saved and suffer the consequences (poverty, homelessness) if they run out of money?

What are the day-to-day management implications of growing income and wealth inequality in the U.S.? The wider the wage gap gets the harder it becomes for management. Employees have become frustrated with pay cuts, furlough days, and reductions in staff that leave the remaining workers with more to do in less time for less money. Combine this reality with the extraordinary rise in executive compensation and you have a recipe for distrust and poor morale. If not addressed, these negative factors can become toxic and truly poison a work environment leading to a costly decline in efficiency and effectiveness.

Annotation 3bBack to the Opening CaseQuestions: Do you have the 2020 mind-set described in the opening case? This is a personal opinion question that will require some self reflection. Review each element listed on page 65 and provide an example each that demonstrates your 2020 abilities.

What are your main strengths and areas needing improvement to work effectively in the 2020 workplace? Continue with the results from the previous question to prepare an action plan for improving\learning skills and gaining knowledge necessary to be successful. If you are having difficulty identifying your strengths, consider reading StrengthsFinder 2.0 or StrengthsQuest and complete the survey.

Annotation 3cA Global Brand QuizBrand Home country Survey Results*

Nokia Finland 4.4% (53.6% incorrectly said Japan)

Lego Denmark 8.4%

Samsung Korea 9.8%

Ericson Sweden 9.9%

Adidas Germany 12.2%

*(1,000 students surveyed, the results indicate the percentage who answered correctly)

Questions: When you buy something is a product’s country of origin more or less important than price and value?

Personal opinion question, however, consider the following: until the 1960s, most people owned a few changes of clothes – maybe enough to wear for a week without a repeat. Then inexpensive clothing came

along, courtesy of international trade, and closets went from 8 feet long to the size of small bedrooms, complete with built-in furniture. A household had one radio, and later one TV. Then electronics started to come in from other countries at much lower prices, and most homes have at least as many televisions as there are people. We eat grapes in the winter and bananas all year long. International trade has changed almost every aspect of how we live. However, most people do not think about the country of origin when shopping, they evaluate other factors such as price and quality.

What implications does your answer to the previous question have for the global economy and for the U.S. economy? Two global economic trends are for quality standards to go up while wages go down. However, we still worry today about lead paint, because toys imported from China have been discovered to carry dangerous levels of the stuff. Given this, how do you feel about having your vitamins made in China? People are worried about jobs going overseas. Does this affect your buying decisions? Are you willing to give up your luxuries in exchange for keeping those manufacturing jobs in the United States? Will U.S. government agencies enforcing quality standards give you a greater sense of confidence and feeling of safety when buying products made in the USA?

Annotation 3dAdvice for Future Intrapreneurs

Questions: How can these ideas enhance innovation in large organizations? Is this advice a formula for career success or sudden unemployment?

Innovation in organizations develops in two ways—by hiring people who are willing and able to take risks and be innovative and by providing an environment where that type of person can thrive.

Pinchot’s advice for successful intrapreneurship is valuable if your firm supports this type of behavior. But it’s a formula for getting fired by change-resistant managers in static bureaucracies. Determining your comfort zone for risk and matching it to the risk requirements of those companies you are considering for employment is one way for you to make sure your job of choice will be a success.

If you’re not sure how willing you are to “push the envelope” in a work environment, take a look at yourself in the classroom. Are you constantly challenging the perspective of the professor, pointing out a new approach to an issue, and volunteering without knowing what you’re going to be asked to do? If so, you are probably more willing to take a risk. If, on the other hand, you write your papers based on what you think the professor wants or expects to hear, tend to comment in class only to clarify a point or get details for the exam, and pretend to be taking notes whenever volunteers are needed, you may be risk-averse.

Both behaviors have value. Most of the new products on the market stem from people and companies who are willing to take risks. Google is an excellent example of a company that cultivates intrapreneurs. However, following Pinchot’s ten commandments in a more structured or regulated environment would likely be a disaster. Do you want a creative and risk-taking CPA managing your company’s books? Probably not; just ask former Arthur Andersen clients.

Annotation 4a Is It Time to Go to Vietnam?Question: Is it time to do business in Vietnam, or would it be an insult to the aging American veterans of the Vietnam War? Explain your reasoning.There are two perspectives to consider when answering this question. From a business perspective, if Vietnam can produce low-cost, high quality goods and services shouldn’t a company have the right to leverage this opportunity to increase profits? The other perspective is more emotional and involves looking at how people would feel. There are many Vietnam War veterans sitting in executive and management positions across the U.S. imagine for a moment what crosses their mind

when considering offshoring to Vietnam. Perhaps one of your parents, aunts, uncles or grandparents can provide a first-person opinion on the matter. An important lesson to be learned from this discussion is the need for managers to consider the ripple effect of their decisions and the potential unintended consequences. Conducting business in Vietnam could potentially create a firestorm of criticism, boycotts or union strikes. Therefore, it is critical that management involve various stakeholders in the decision making process to minimize negative unintended consequences.

Annotation 4b In Search of Cultural IntelligenceQuestions: Is the concept of cultural intelligence evident in this sketch? Explain.Yes, clearly Stephen Miles’ life experience and travels provides evidence along with his comment, “You have to read people quickly to fit into the social network.” He goes on to say, “My whole world is about trying to read people, find that one ticket in; and get them to do something differently.” As the definition of cultural intelligence (CQ) states, people with CQ have the ability as an outsider to read individual behavior, group dynamics and situations in a foreign culture. Miles demonstrates is CQ through is travels, experience and observations shared in the comments above.How would you rate your own cultural intelligence? Explain.This is a personal opinion question. Where do you rate on the CQ spectrum? Do you think a person must live, visit for a short period, or simply study a country to develop high CQ.

Annotation 4c Back to the Opening CaseQuestion: If you were given a three-month foreign assignment in China, knowledge of which of the cross-cultural differences discussed in this chapter would be most critical to your success? Explain.There are several cross-cultural differences that a manager would need to know before heading to China. First, as we learned in the chapter opening, there are some elements of collectivism such as group decision making and team work however, individualism is prevalent in China. Understanding a person’s self-interests will be important for your working relationship. In addition, appreciate that real-time decisions can be made but business relationships and policy changes will require more time for deliberation. Also, of particular importance is the fact that China is a high-context culture. Therefore nonverbal communication, your official status and place in society and your reputation will impact how the Chinese will receive you and determine your trustworthiness. An appreciation for general cultural differences such as perceptions of time, interpersonal space, language, and religion will be important to learn about prior to you trip. Finally, and perhaps most importantly, it is essential that you are patient while doing business in China!

Annotation 4dForeign Language SkillsQuestion: Could you conduct a business meeting in one or more foreign languages? What has been your experience with trying to learn foreign languages? How strong is your desire to speak a foreign language? Which language(s)? Why? Would a second language help you get a better job? Explain.Depending on where you live, go to college and work may impact your answers. Consider one professor’s response below:

In general I am a good learner. There are very few areas where I can say I have trouble. Unfortunately, learning a new language is one of those areas. Because when I was growing up a number of members of my family didn’t speak English, I learned enough Italian to get by (with my grandmother, one critical word was basta, or “enough,” when she was filling my plate!) But in spite of taking three languages in high school and college, I never developed any real fluency with a second language. Now I am living in

the Southwest, and several people who work for us are not at all comfortable speaking English. I want to learn enough Spanish to be able to hold a short, simple conversation. Nothing fancy. Not being able to speak more than one language has been a constant handicap for me, even within the United States.

How about you? Are you able to speak two or more languages? Did you take a second language in high school? Are you taking one now? In the Southwest, many jobs list bilingual Spanish/English as a plus—and sometimes as a requirement. Would you qualify?

Annotation 5aPersonal Social ResponsibilityQuestions: Would you vote to cancel the party for charity? Explain.Your friends, coworkers, and classmates will likely be split just as the survey results were, indicating a clear difference of opinions. Consider suggesting a compromise. Many organizations have a holiday party that includes opportunities for employees to donate food and\or money. One company offers a wide variety of games designed by different departments. Prizes are donated. Employees who wish to take a chance or participate in the game make a small donation ($2 or $3). Another company has a silent auction for baked goods prepared by employees – the proceeds support a scholarship program.Why do people who unselfishly donate their time and money find it so personally rewarding?Although our class discussion about motivation is not covered until chapter 12, now is a good time to introduce some of these concepts. Whether it is to be part of a group, improve self-esteem or simply feel like you are making a difference in the world. Volunteers from across the world will share that they get more in return than they give. What a concept to ponder!What is your experience (and future plan) as a donor or volunteer?Volunteering is not only a good thing to do; it may lead to a job or at least a positive reference. It is of course a great opportunity to learn new skills, gain experience and have something tangible to add to your resume.

Annotation 5bBack to the Opening CaseQuestion: Where would you plot Pfizer on the social responsibility continuum? Explain.To repair their tarnished image, Pfizer implemented the free drug program for people who lost their jobs. Pfizer executives would like the public to believe that this was a proactive social responsibility strategy critics would argue that this is simply a public relations effort and at best they are following the accommodation strategy. However, the fact that Pfizer agreed to a $2.3 billion settlement to resolve allegations that they illegally promoted uses of four of its drugs is an indication they have also used a defensive social responsibility strategy.

Annotation 5cSurvey says…….Questions: Has America, as some contend, become a “cheating culture” in which cheating is expected and tolerated? If the results of the survey of 43,321 teenagers are any indication…we may have good reason to be concerned. Did 60 percent of students cheat on an exam because of the pressure to earn good grades so they can go to college or did they cheat simply because everyone else does? Perhaps another source of the problem is the large number of ethical breaches by CEOs and other high ranking officials that get reported but seem to go unpunished. What can we do to repair our nation’s

reputation as a cheating culture? Do you have a personal code of conduct? Does your college have a code of conduct that addresses cheating and unethical student behavior.Can values and ethics be turned on and off to fit the situation (e.g. cheat in school but be an honest businessperson later in life)?Have you ever cheated in school? Do you know others who have? Ask yourself, if someone would compromise their honor to get a better grade on a test, how much more likely are they to compromise to get ahead, make lots of money, and even become the CEO? If you want business ethics to improve, you’ve got to start at the beginning, with today’s students who will be running tomorrow’s companies. It is highly unlikely that a person can manage a split ethical personality.

Annotation 5dA Strong Ethical Culture PaysQuestions: What workplace lessons have you learned from working in either strong or weak ethical cultures? Ethical decisions are rarely the easiest decision. Challenges to a person’s ethics can range from a cashier giving you too much change to a choice between committing perjury and going to jail for life.

Most of us would like to think that when a tough decision faces us, we will do the “right thing.” However, consider the number of students who have cheated on an exam, the number of consumers who have shoplifted, even the number of drivers who have speeded or thrown away a parking ticket—it’s not easy to behave ethically even when the pressure is simply saving money or getting a better grade on a test. What if the pressure involved losing your job or possibly even destroying your career?

Does teaching ethics in business school make a difference? Probably not to everyone, but it might to a few. Given that, it’s probably worth doing. However, when faculty and administrators don’t hold students to high standards of ethics in the classroom, and companies don’t hold employees to high standards of ethics in the workplace, individual standards will slip. Teaching ethics isn’t enough. Ethical principles have to be lived. The rules need to be spelled out, with consequences that are real, easily understood, and always enforced.

In the role of management consultant, what advice would you give present and future managers about building a strong ethical culture?First, I would recommend they provide an overview of common ethical issues and hot spots:

(1) Ethical hot spots: Employees engaging in unethical or illegal acts at work. The number one workplace hot spot responsible for triggering unethical and illegal conduct was found to be balancing work and family.

(2) Pressure from above: This is the actual or perceived pressure from superiors for results. This can lead to blind conformity.

(3) Ambiguous situations: Employees feel uncomfortable when faced with ambiguous situations in which there are no clear-cut guidelines. Ethical codes can satisfy these needs for guidelines.

Encouraging ethical conduct1. Create an ethics training program, required for all employees. Key features include: top management support; a clear focus on ethical issues specific to the organization; Integration of ethics in all training; Hotlines or other ways for employees to report violations anonymously; create a corporate climate that reward ethical conduct.2. Identify an ethical advocate that can attend meetings and deliberations with the role of critical questioner.3. Develop and provide a copy of a Code of Ethics for every employee.

Annotation 6aBack to the Opening CaseQuestions: What type of uncertainty is Facebook dealing with when the privacy issue is raised? Explain.Facebook is facing response uncertainty. They are providing users with the tools and access to share just about anything, anytime. What they don’t know is what consumers reaction will be and how the government will respond.

In general, what are the most challenging uncertainties for Facebook as the company continues to grow?Facebook faces a variety of uncertainties including concerns about cyber bullying, privacy, over-commercialization, potential government regulations, consumer behavior, and potential threats from hackers. As they continue to grow they become a bigger target for both watch-dog groups as well as cyber-criminals. Planning can help them cope with these uncertainties but the reality is that some of these items are heavily influenced by people and things beyond their control. However, Facebook can continue to be prospectors defining where the market will go next. In addition, they are likely to continue their practice of shaping people’s perceptions, values and behavior to embrace their vision and the products they provide. Simply put, they can cope with uncertainty by continuing to innovate and leverage their technology to promote their new products and services to their vast customer base.

Annotation 6bBack to the Opening CaseQuestion: Would you call Facebook a defender, prospector, analyzer or reactor?Facebook is a Prospector. Its approach is focused on innovation—being the first to market with a totally new concept. This may be highly risky, but in this case, it has also become highly profitable.

Annotation 6cClear PrioritiesQuestions: Why are firmly established and clearly communicated strategic priorities crucial for organizational success today?Without strategic priorities organizations run the risk that limited resources may be misallocated and ultimately the business will fail to achieve its vision for success. When everyone in a company knows the priorities they will not only understand why decisions are being made regarding the use of people’s time, the company’s money, and the use of physical resources. Employees in fact may offer suggestions to help the company achieve the strategic priorities in a more efficient and effective manner.

What are your personal priorities, and will they help get you where you want to go?

Connect your priorities with your personal plan\vision. Write down your vision for your career and future. Now make a list of your goals, prioritize and write down your action plan to achieve success.

Annotation 6dOh, My Aching Deadlines!Questions: How do you respond to deadlines? Which types of deadlines motivate you and which kind do not? Why are deadlines such a powerful tool?

One of my favorite quotes is by Douglas Adams, author of the Hitchhiker’s Guide to the Galaxy books and other literary delights, and a notorious procrastinator. He said, “I love deadlines. I love the whooshing noise they make as they go by.”

As much as we complain about deadlines or dislike them, the simple fact is that they do push us to get things done. A deadline is a constant, nagging reminder that something needs to be accomplished at a specific time. Moreover, we tend to get a great feeling of satisfaction when we meet a challenging deadline. Some people thrive on deadlines. Others are haunted by them. For me, deadlines are essential to getting anything done. Just tell me when you want it, and you’ll get it then—but no earlier! However, as a manager, it is important to note that most people respond better to deadlines when they have participated in establishing the parameters (defining the specific goal\objective and when it is due). In addition, as you climb the corporate ladder you may soon realize that it is far better to turn something in early rather than miss a deadline. Better to under promise and over deliver, better to arrive early than be late, especially in business!

Annotation 6eMeet Me at the MarginQuestion: What is the connection between this statement and break-even analysis?Break-even analysis is fundamental to succeeding in a business, whether you’re talking about Apple or the corner ice cream shop. If you don’t make enough to cover your costs, sooner or later you’re going to run out of money.

This may seem pretty straightforward, but during the dot-com rush, people lost sight of the fundamentals. Some even said that the old way of valuing businesses was out of date, and bricks-and-mortar calculations didn’t measure up to profits. Well, they were wrong. It’s like the story of the three little pigs. As long as the wolf stayed away, the houses of straw and sticks seemed fine. But when the wolf is at the door, be glad that bricks-and-mortar structure is keeping the company—or the pigs—safe.

Annotation 7aBack to the Opening CaseQuestions: In terms of Table 7.1, what sort of strategic farsightedness can keep Google from being pushed aside by Facebook?There are several of the key dimensions presented in Table 7.1 that Google can implement to remain competitive in the rapid growth and expansion of products and services on the Internet. Number 2, Competitive Advantage emphasize being the leader to achieve this Google needs to invest in Number 4, Research and Development where they continue to roll out innovative products and services using innovative marketing and HR strategies. This will require Number 3, Organizational Structure that is flexible, embraces change and fosters an environment where communication throughout the organization is quick and effective. From further research about Google you may be familiar with their job description that directs employees to spend twenty percent of their time working outside of the regular duties to experiment, innovate and simply try to develop new products or services to stay ahead of the competition.

Annotation 7bRunway Fashion on a BudgetQuestions: Which of Porter’s four generic competitive strategies is being followed here? Explain your choice. How would you tweak RentTheRunway’s strategy to ensure continued success?

Right now RentTheRunway has a focused differentiation strategy because they are delivering a unique service to a limited audience. However, as the word spreads and their member lists grows they could quickly shift strategies to maintain competitive advantage. Currently they have no competitors however with every good idea comes a copy cat. Therefore, they will probably soon face competition. At that point they can continue with focused differentiation if they have exclusive contracts with the best designers which will allow them to still charge between $50 and $300 per dress rental. For those with a desire to wear the latest fashion designs this is worth the price. However, they could decide to go after a broader market with a cost leadership strategy where they offered lesser known designs at a cheaper cost which would expand their market share to include teenagers renting dresses for homecoming or prom. Their price points are more likely to be in the $25 to $75 range. The key to RentTheRunway’s continued success is to define their competitive strategy and implement a plan for growth and profitability.

Annotation 7cA CEO Gets Comfortable with Social MediaQuestions: What are the pros and cons of Dunn’s heavy involvement with social media? Is it wise to rely on the company’s values for controlling employee abuse of social media?Brian Dunn, CEO of Best Buy personally posts on Twitter and Facebook. Many other companies have employees take responsibility for writing content that is posted on an executive’s Twitter, Linked-In or Facebook account. By taking a hands-on approach Dunn is learning firsthand what is said about his company and he is controlling his message. He is always demonstrating to his stakeholders that he is in-tune with how people communicate. The downside to this is that it can be very time consuming and some would argue that the CEO should be spending their time on higher level, more strategic activities.

The fact that he is counting on his employees to exercise good judgment by acting within the company’s values is good and bad. The upside is that he is demonstrating incredible confidence in his employees while also recognizing that they are engaged in social media. Rather than prohibiting activity, he is encouraging it (with a broad directive). Employees will feel empowered and are quite likely to post items that will reflect positively on the organization. The risk, of course, is that some employees lack good judgment or are disgruntled and choose to post items that may damage the company’s image, brand and reputation. Having someone on staff to monitor the company’s image on the Internet would help protect against damaging posts and save Dunn some valuable time, although he may still post, particularly to counter anything negative.

Annotation 7dWhat’s Our Mission?Questions: What does this teach us about micromanaging, mission statements, and employee empowerment?Wouldn’t you think that the one place to anticipate top-down strategy would be the military? Actually, the management style of the four branches has always been sophisticated, and it’s no surprise that there is initiative in terms of problem solving. Realistically, no matter how well-trained military personnel are, there is no predicting what to expect in a war situation. Without a focus on solving problems, particularly among the officers, the best training in the world would fail. The fact that soldiers know the mission, have been trained, are not micro-managed and feel empowered increases their likelihood for success.

A lot of organizations could learn from this approach.

Annotation 7eCalling All Oddball Curiosities and FailuresQuestions: Among the failed businesses and product flops you have observed recently, which ones are “interesting failures” that, given the right conditions, could be profitable ideas? Explain.A good idea by itself is not enough. You also need business savvy to make your ideas into reality. My father-in-law is a source of great ideas, developed before their time. But he was never able to take them to the next step, and he watched as others came up with similar ideas and succeeded. Someone with business smarts could have talked with him and created a successful product—or two or three, or ten. Proper planning, forecasting and execution of the plan can be the difference between greatness and going back to the drawing board.

Annotation 8aBack to the Opening CaseQuestions: Based on the facts of this case and any reasonable assumptions, how many of the eight sources of decision complexity are evident in the Boeing case? Explain.Based on what we know from the opening case, it is safe to assume that all eight factors should have been considered. However, it appears that Boeing executives may have proceeded with their decision to outsource design AND build without input from the designers or mechanics responsible for the final assembly. Had inter-disciplinary input and pooled decision making been involved it is quite likely this disastrous situation would have been avoided. In addition, based on the decisions made it is quite likely that value judgments made looked at long-term implications and evaluated risk and uncertainty with an eye towards increasing profits by reducing assembly time. What they failed to consider was the complex nature of their product and the potential unintended consequences. This is a good example of narrowly focused decision makers who failed to consider the full range of likely consequences of their decision.

Annotation 8bHow Intuitive Are You?Questions: How intuitive are you? Would your close friends and relatives agree with your score? How do others tend to react to your level of intuition? How can your intuition (or lack of it) help or hinder you as a manager?There are no good or bad scores on this intuition quiz. The key learning point is to appreciate interpersonal differences among members of your class or team. Intuitive people seemingly jump to conclusions. They rely on spontaneous knowledge instead of on systematic problem solving, carefully reading directions, or the scientific method. Intuitive people push buttons first and ask questions later. They may seem less than logical to those who prefer more systematic approaches to gaining insight. Intuitive managers may become frustrated by coworkers who ask “why” or request supporting evidence. “They just know, that’s why!” See Table 8.1 for recommendations on how to sharpen your intuition.

Annotation 8cA Recipe for Good Decisions?Questions: How does a specific decision recently made by either you or a manager measure up to each of these four criteria? How did the quality of the decision-making process affect the outcome.

Evaluate your decision based on the four criteria: forward looking, take into account available information, consider available options, and do not create conflict of interest. How can you practice your decision making skills?

Consider the parenting perspective: decision making is like parenting. Even though it’s one of the most important things we do, no one seems to think they need any training to be good at it. Not only do most people have no education in making decisions well, they also don’t have any real experience. Yet every employee is expected to make good decisions. For most people, once they move beyond a “follow the rules” level, there is a scary and challenging period where they make a lot of guesses and tend to “punt” in difficult situations. This can’t be good for an organization. Mentoring, coaching, and training can help fix this. However, the bottom line is that a combination of experience and good judgment is the key to making good decisions. Following the Recipe presented can help guide the process.

Annotation 8dCollective WisdomQuestion: Do you agree or disagree? Explain.The stock market is an example of the intelligence of groups. Often, the market’s behavior predicts a problem long before so-called experts discover it. Groups can also be stupid and easily swayed. For example, look at the lynch mobs of the past who took the law into their own hands because emotions eclipsed reason and values. And more often than I like to think, election results … well, let’s not go there. I think the key phrase in this quote is “under the right circumstances.” Given my druthers, I would rather have a decision made by one smart person than by 30 mediocre ones.

Annotation 8eQuick Test of Your CreativityQuestions: How quickly did you solve this puzzle? What was right or wrong about your approach? What does it say about your creativity? How sturdy is that box of tacks? How heavy is the candle? What kind of wall? I think I’m making trouble for myself here. My initial solution (tack the tack box to the wall and set the lighted candle in it, dripping some wax in the bottom of the tack box to “glue” the candle to it first) may work fine, but my follow-up questions may challenge my answer. Creativity is a great start to problem solving, but then you have to follow up with a reality check. If it’s a birthday candle, we’re golden.

Annotation 9aBack to the Opening CaseQuestions: Why does DaVita deserve to be called a learning organization? The learning organization model is evident at DaVita as they clearly put theory into action. Starting at the top with CEO Kent Thiry they have developed a culture where people admit their own uncertainties and what they don’t know. And, they make a commitment to follow and find the answer. These are classic characteristics of a learning organization where they can create, acquire, and transfer knowledge.

What sets DaVita apart from the typical workplace? DaVita is different from most organizations because they value the truth and admitting ignorance. Most companies value and reward happy talk, even if it isn’t true.

Annotation 9bWider is Better, for the Head of Cisco SystemsQuestions: What are the keys to making Chambers’ wide span of control work?Chambers has discovered that, for him, empowerment has to be built into the structure of his immediate team. If he can’t keep track of them, they become empowered by default. The key to success with this approach is having the right people: those who are capable of demonstrating initiative and handling responsibility—and who know when Chambers needs to be pulled in on a project or a decision.

Annotation 9cNo Choice But to DelegateQuestions: What does trust have to do with effective delegation? Why do so many managers do a poor job of delegating and become “micromanagers”?Early in her career, Elisse Walters did not even trust her secretary to mail a letter. However, circumstances forced her to trust and delegate. She’s not alone, many managers are nervous about delegating because they don’t trust others to get the job done. Sometimes it’s a control issue; they want to handle everything. Sometimes it’s fear that their employees won’t do as good a job. Sometimes—often—managers convince themselves that by the time they explain what needs to be done to a subordinate, they could just as easily have done it themselves. But the truth is that delegation is an investment in the future. If you delegate responsibilities, not just tasks, soon subordinates can handle many things themselves, which increases their value to the organization and frees the manager to focus on higher-order responsibilities. Good managers think about developing their people, and delegating is one of the best ways to do that. Those “work martyrs” who work long hours instead of handing some of the work to others in their departments are not doing a good job. In my opinion, delegating is one of the most important skills a front-line manager can have.

Annotation 9dThe Reconfigurable OrganizationQuestions: Does this describe a relatively mechanistic or organic organization? Explain.Although there are stable basic structures, business practices, financial systems, and performance management processes which may lead you to think this organization is mechanistic in fact it is a mixed environment with organic elements serving as a major differentiator. For example, the dynamic team forming, disbanding and reforming is clearly very organic.

Why is this type of organization necessary in today’s faster-paced world?

This model gives an organization a major competitive edge as the strong infrastructure combined with the nimble team formation allows them to quickly mobilize to take advantage of an opportunity.

What type of employees will thrive in reconfigurable organizations?

Employees who thrive in a fast paced, rapidly changing environment. They need excellent communication skills, the ability to adapt quickly, and a desire to work in teams. Comfort with ambiguity and a degree of flexibility are also essential.

Annotation 9eBack to the Opening CaseQuestions: How can the key aspects of DaVita’s learning organization be integrated into another organization’s culture and be successfully replicated? As we have learned in this chapter, management cannot simply walk in and tell employees we are now a learning organization. There has to be a planned, multi-faceted strategy that brings employees together to embrace this new culture. The use of symbols, language (slogans), stories, and practice (activities, ceremonies) will be essential. Of course, as we learned from Kent Thiry, the leaders need to set the example AND they need to reward those employees who have the courage to tell the truth, admit their mistakes, ask for help, or identify problems. Transforming to a learning organization can be done, but it requires an investment of time and resources combined with the reality that mistakes will happen. Management needs to be prepared to respond to these situations by asking, “what can we learn from this?” instead of reprimanding the employee.

Annotation 10aBack to the Opening CaseQuestions: Is Google’s quantitative approach to managing human capital the right approach, or should experienced managers be trusted to rely on their judgment and “gut feelings” for hiring and promotion decisions?In this new era of rapid change and high expectations for quality and customer service, the company who gets it right the first time will have a competitive advantage. Considering the high cost of turnover, it also makes good financial sense to invest in hiring and retaining the best and brightest. Google has used their quantitative approach to research and identify key indicators for success. As a manager it would be very helpful to have this insight. However, as a seasoned manager, I also want the freedom and flexibility to use my experience and instincts. Perhaps an approach that leverages quantitative data but leaves room for subjective analysis is a more balanced approach.

Annotation 10bWhat’s Your Story?Questions: How can this approach be worked into behavior-based interviewing?Typically, people exhibit increased confidence when talking about a subject they know well. By asking a person to tell their story, you are giving them an opportunity to not only reveal insightful information but gain some confidence early in an interview. By combining the question, “Tell me your story” with “and tell me about a time when you had to overcome adversity.” From this you will learn a lot about the candidate.

Annotation 10cSurvey Says….I’m a Star!Questions: Why is this a major roadblock for honest performance appraisals? Does this help explain the widespread dissatisfaction with performance appraisal systems? Explain.I believe the best gift any manager can give you is critical yet constructive feedback. Tell me what I’m doing wrong and show me how to do it right and I’ll be a hard working, highly

motivated, loyal employee for a long time. It’s easy to hand out compliments, although many managers are too stingy with them. But to let someone know they’re not performing well enough is very difficult.

If you have a boss who never gives you any corrective feedback, you need to ask for it. And ask yourself how you react to that type of feedback. Do you become defensive and make excuses, or do you listen and look for ways to resolve the issues? How you react can have a direct impact on how much feedback you get in the future. You don’t want the first piece of negative feedback to be during your performance evaluation!

Annotation 10dIs Experience the Best Teacher?Questions: Who can likely teach you the most, someone who has done the same job for 20 years or someone who has 20 years of varied experience? Explain. How can you effectively blend valuable lessons from your own experience and the wisdom of others?Who can teach me the most depends on what I’m trying to learn. If I am trying to master a very difficult skill that is highly specialized, I would go to the expert with 20 years of experience with this job. However, if I am working on developing my communication, problem-solving, team building or adaptability skills I’m probably going to learn a lot more from the person with a wide variety of experiences. From a personal perspective it is important to share our knowledge and expertise with others but also recognize that there is always going to be a better, faster, smarter way to do something so never act like a “know it all”. Instead, treat yourself like a learning organization, admit what you don’t know and commit to lifelong learning. In addition, take every opportunity to learn from others. This requires you to get outside your comfort zone to expose yourself to people who have different interests, talents and strengths than your own. In fact some of these people may seem strange, weird or eccentric – keep in mind they have something of value to share. Get past your personal bias and you will open your mind up to incredible wisdom.

Annotation 10eMedical Marijuana and the WorkplaceQuestions: Should it be “zero tolerance” in the workplace with pre-employment and random drug testing? Or is it time for a different approach, given the growing number of states legalizing medical marijuana?The company policy needs to be written in such a way that employees are treated fairly, consistently in a way that promotes a safe, productive work environment. In addition, the policy for medical marijuana should be the same as the policy for use of other prescription drugs that may have a negative impact on a person’s motor skills, reaction times, and cognitive abilities. With this in mind, it seems reasonable that a company may prohibit employees from coming to work under the influence of any of these drugs (or alcohol) as their performance may be impaired which may at a minimum lead to a decline in quality and worst case could result in injury or death. A company should have the right to hold every employee to the same performance standards, to enforce necessary safety standards, and ensure that the products\services produced meet minimum quality standards. If this means they need to have a “zero tolerance” policy they should be free to enforce it. The key is to disclose this to job applicants during the recruitment process, rather than spring it on someone after they have been hired.

Annotation 11aBack to the Opening Case

Questions: How does Maureen Chiquet’s experience at the Gap demonstrate that effective organizational communication is a dynamic, two-way process?Chiquet was young, smart and eager to succeed. She thought she had the next big idea for a product. However, her boss was less enthusiastic about the idea. Instead of listening to his feedback and learning from him, she continued to argue for her cause. Lucky for her Mickey Drexler decided to give her some good advice instead of firing her on the stop. The lifelong lesson Chiquet learned from this experience is that you have to constantly stop and listen. Invite diverse opinions; seek new information –even if it is not what you necessarily want to hear. Effective leaders and managers inspire people through their vision and stories but they engage people, gain their loyalty and ultimately strengthen their organization by listening. In fact some would argue that managers should listen at least twice as much as they talk. Chiquet spends 75 percent of her time listening to her direct reports.

Annotation 11bQuick QuizQuestions: This describes which one of Clampitt’s five communication strategies? What are the strengths and limitations of this strategy?Although Pontish Yeramyan’s story lacks enough detail to be sure, it appears that the CEO is using the Underscore and & Explore strategy to build rapport with his employees. This strategy requires excellent listening and consensus building skills. This is a two-way communication strategy which naturally leads to greater employee input and diverse opinions. The potential downside is that managers need to balance creative freedom with the need to accomplish goals efficiently and effectively.

Annotation 11cShould I Tell Him?Questions: What is the ethical thing to do here? What would you do? Explain your rationale.The ethical thing to do would have been not to read the memo. Of course, the responsible thing would have been for the boss not to leave a memo like that in plain view—as dangerous as kindling a fire on his or her desk.

It’s a tough call. My inclination would be to keep mum, unless that person is about to buy a new car, take out a mortgage on a house, or spend a fortune on some other item he or she might regret buying upon facing the loss of his or her primary source of income.

The other issue is that denial is a potent force, and your words may not sink in. I had a subordinate once who was targeted for a layoff, but I was not allowed to tell her. She was buying a house, and she came to me to ask me whether she was going to have a job to pay for it. I all but told her no, even going to the point of saying, “I can’t say anything, but if I were you, I would not be buying a house right now” in very somber tones. Later, she was angry that I hadn’t told her she was being laid off. In effect, I had, but she didn’t hear me.

Annotation 11dAre You a Supertasker? Don’t Bet Your Life on it.Question: If you habitually multitask, while driving, are you willing to bet your life that you are among the rare “supertaskers”?

First, let’s remember that texting while driving is illegal in most states and dangerous no matter where you are driving. Now, some would also argue that talking on your cell phone, even if using a hands free device should also be outlawed. The results of the Utah study would certainly provide data to support this position. My personal recommendation: use your drive time to clear your mind not clutter it. Your goal is to get yourself from one place to another safely!

Annotation 11eThat’s All Folks!Questions: How does a manager develop such a sixth sense? Taking the role of a management consultant, discuss how often (and when) the early-finish tactic should be used.Meetings, at their best, can have the same effect as a good movie, or any event that passes along information in an interesting way. A good film director thinks about how to tell the story so the audience gets caught up in the plot, cares about the characters, and leaves in a certain frame of mind. A good meeting facilitator can structure a meeting the same way.

Have you ever attended a training program or college class where you looked forward to the process as much as to acquiring the information? Are meetings that you attend fun? Interesting? Exciting?

An early close is just one good way to keep a group on their toes. There was a drama professor at my undergraduate school who was extremely talented and disciplined, and just flamboyant enough to make you sit up all through one of her classes. Once in a while at some point in the class—and not always at the end of the allotted time—she would pause, look at everyone and say, “Go away.” Class was over.

Annotation 12aQuick QuizQuestions: Starbucks is trying to satisfy which particular needs in Maslow’s hierarchy? Explain. Is this an effective approach to motivating today’s employees?The Starbucks approach will definitely help fill safety and physiological needs, but it will also help fill esteem needs. Just the idea that your company values you enough to give you health care and stock options is pretty complimentary for a part-timer. I think it would be one reason to be glad you worked at Starbucks rather than at that place where only the customer deserves a break today.0

Annotation 12bBack to the Opening CaseQuestions: Which of the five core dimensions of work can you detect in the Rackspace case? Explain. What is the motivational potential of the core dimensions you identified?Job feedback is very apparent at Rackspace. It is obvious that the company openly shares important company information and also invites open, honest feedback from their employees. In addition, the fact that they link roles, responsibilities and performance to the over-all company mission and objectives implies that there is high level of task significance. Both of these serve to connect employees directly to both the “what” and the “why” of the work they are doing while also feeling valued and that their opinions matter. These are all essential ingredients for employee motivation, performance, and retention.

Annotation 12c

Does Money Buy Happiness?Questions: Some management theorists say money isn’t a motivator. Do you agree or disagree? Why? When it comes to motivating you to do your best, what role does money play?Are they crazy? $10 million would certainly change my work habits. Would I stop working totally? Probably not, but I would limit what I worked on. A lot of jobs I do now would be left by the roadside for hungrier educators while I spent time traveling the world, kayaking, and volunteering. The best thing for me about winning that kind of money would be not having financial issues affect my life decisions. We could travel, entertain, share with others, and still have plenty for retirement. My life does not revolve around money. I do much of my work for the pleasure and satisfaction of helping people learn and achieve their goals. However, I would not spend as much time or energy, particularly on the administrative duties required, if I had complete financial freedom.

Annotation 12dBack to the Opening CaseQuestions: Does Rackspace have a good employee engagement program? What is the single most important component of the program? Explain.Yes, Rackspace does have a good employee engagement program and they have the retention data to support this with lower than average turnover rates. The fact that Rackspace invites employees to share their feedback, unfiltered, is one of the most important aspects of their engagement program. An employee becomes more fully engaged when given the chance to share their observations, criticisms, suggestions and ideas. When the company actually listens and takes action employees level of engagement increase and the retention rates climb. All these factors are good for business!

Annotation 12eHow Family-Friendly Are U.S. Labor Laws?Questions: What is your assessment of this situation? What specific family-friendly programs would you recommend? How far should companies go in terms of being family-friendly?There are a number of politicians in the United States who have made a career of talking about “family values.” The truth is, however, that their definition of family is the nice and tidy one where the husband works and the wife stays home with the 2.5 kids and cleans the house and cooks dinner. The reality is much different in this day and age. The same politicians who tout family values are also getting very large donations from very large companies that have no desire to match the standards of family-friendly that are commonplace in most developed countries. Until that situation changes, big business will get to decide just how family-friendly the U.S. workplace is, and so far I’m not impressed. However, companies like Nugget Market, Cisco Systems, Nustar Energy, Johnson Financial Group, and Southern Ohio Medical Center are going way beyond the legal minimum. Hopefully other companies will follow these inspiring organizations and implement more family-friendly programs…..which can also be good for the bottom line. Long-term win-win for both the employee and employer is the name of the game!

Annotation 13aBack to the Opening CaseQuestions: What is your answer to this question, and what are the broader implications of your actions? Is it ethical for employers to monitor the leisure-time social media postings of their employees? Explain.

Ultimately, students, employees, and managers need to realize that whether it is ethical or not, people do it all the time. HR recruiters look up job applicants, managers monitor employees, and managers beware……your employees are also watching your every move online as well. As a manager, you may discover information about one of your employees that does not reflect well on them personally. However, the ethical thing to do is pause before taking any action and ask yourself how their posting impacts the company and the employee’s ability to their job.

Annotation 13bThe Business of GolfQuestions: Why does shared adversity foster strong relationships and bonding? How can managers get task group members who do not play golf to bond like this?We all have façades, or shells, that we present to the public. Part of that shell is the communication of “I know what I’m doing.” Let that shell slip, and others get closer to the real you. In times of adversity, with humiliation and trauma, the shell slips, and even after it’s back up, the inner you has been exposed to others. Because everyone has one of those shells, people connect better when they see other shells slip too. You can admit worries, acknowledge defeats, and show your true strength—not the supposed power of always getting it right, but the real power of getting it wrong, falling, and getting up and trying again.

Showing vulnerability encourages bonding. If managers can get task groups in environments where they are vulnerable, a stronger bond will occur. That’s one secret to the success of “Outward Bound-type” programs where people climb poles and jump off, etc. We draw closer to others in times of adversity, and the connection remains even when the adversity is over.

Annotation 13cTime to Crush the Boss?Questions: What advice would you give to Killer Backhand? How “political” is your answer?This is a golden opportunity for this young executive to get an insider connection to the top. The challenge is how to play this particular game. I think it is more costly in the long run to rebuff the CEO’s offer of a game than to play. However, I think it’s important to remember that even though it looks like a game, it’s really an extension of the office environment. Would you make the CEO look bad in the office? Of course not. So don’t do it on the racquetball court. I would suggest winning by a small margin the first time and seeing how the CEO takes it. If the answer is “badly,” then losing the next couple of games strikes me as politically wise. But if he likes the challenge, play harder and see how it goes. Of course, if he later has a chance to see you play at your hardest, the appropriate response is “There’s a difference between a regular day of playing and an all-out competition.”

Remember, this is not a friendly game of racquetball between equals. You have the top boss here. It’s not really playing politics in my estimation, it’s playing smart.

Annotation 13dIt’s My Way or the HighwayQuestions: What is the risk of groupthink in this type of situation? Explain. How would you handle the situation if you were the lawyer? What are the ethical implications of your answer?The job of a board member is oversight. This CEO is looking for a rubber-stamp board, which is never a good idea. The challenge for this lawyer is the double whammy—CEO and client. This is one way many

top managers control their boards—by filling the spaces with people who need to support the CEO for personal reasons. It’s also possible that this CEO intentionally chose this person because the rules aren’t as apparent to someone new to board membership.

This board member needs to understand the fiduciary responsibility he or she has as a member of a board. There are ethical issues, but also serious issues of personal liability. Ignorance of the rules will not hold up as a defense in court if there are later problems caused by this CEO’s behavior. Unless the situation changes, this is not a board to be sitting on. This lawyer is in great jeopardy and must look into whatever options are available soon, including officers’ and directors’ insurance.

It’s too late to say this now, but perhaps this lawyer will use this experience to do appropriate due diligence before accepting any future board positions.

Annotation 13eTrust me!Questions: How do you build trust with others, both on and off the job? What causes you to mistrust someone? How should you deal with a coworker who mistakenly mistrusts you?I am one of those who trusts someone until they give me a reason not to….I realize this may be rare but has served me well for more than thirty years in the workforce. To earn other people’s trust I follow a few simple rules:

1. Follow through – I do what I say I’m going to do, by the data established. People learn that they can count on me and trust that when I make a commitment they know it will get done, and get done well.

2. Don’t gossip – this is one of the fastest ways for me to lose respect for someone and begin to not trust them. If a person throws a friend or co-worker under the bus, shares negative or unflattering information, and is highly judgmental it causes me to wonder what they say about me behind my back.

3. Give credit where credit is due – by sharing the credit and celebrating someone else’s contribution and success I’m not only doing the right thing, I am also building trust with that person and the rest of the team. They learn to trust that I will not steal their ideas or take credit for their accomplishments. Nothing burns me more than to watch someone stand in front of a room and take credit for my work.

If I had the unfortunate situation arise where a coworker mistakenly mistrusts me, I would have an open, honest conversation with them. I would avoid being defensive but simply focus on the facts in question. My approach would be one of relationship building not attacking. My ultimate goal would be to find common ground and agree to communicate more effectively in the future. If the person continued to hold on to the misinformation, that was most likely delivered via an unreliable source, I would have to question my level of respect and trust with this coworker going forward. I will give them the benefit of the doubt initially; however, if my effort to clarify the facts is not welcomed and they refuse to look at the situation objectively I would probably try to keep my distance.

Annotation 14aQuick QuizQuestions: Which of the eight generic influence tactics are evident in Rosenfeld’s approach? Would a different approach be more effective? Explain.

This example shouts rational persuasion as she is relying on data and logic to persuade people. In addition, Rosenfeld is demonstrating coalition tactics by gaining support for her idea from others. Beginning with consultation and inspirational appeals would probably bring more people on board more quickly. Through the inspirational appeal she can explain the need for the reorganization. Through consultation she may actually pick up some good ideas from the trenches. Her rational persuasion still has a place and it never hurts to use ingratiating tactics whenever possible. Everyone likes to be noticed and appreciated.

Annotation 14bFormer Xerox CEO Anne MulcahyQuestions: Why is eventually giving up power an important part of the pathway to influence and power outlined in the opening case? Why is Anne Mulcahy a good role model for executives and elected officials?Great leaders are driven by a sense of purpose. As Mulcahy said, she got up with bounce in her step because she thrived on making a difference. When a person retires, they have to redefine their sense of purpose and indentify who or what needs their time, attention and talents next. Maybe it is simply time to enjoy quality time at home or traveling the world. Mulcahy is a good role model for other leaders because she has great self-awareness and she is great clarity about her sense of purpose and vision.

Annotation 14cNetflix Wants “Rare Responsible People”Questions: What are the pros and cons of using a trait list such as this for hiring purposes? How do you measure up to this list of traits?The upside for Netflix is that they are hiring people who share the same traits and behaviors. The downside is they are hiring people who share the same traits and behaviors. In other words, they may be excluding some very talented individuals who do not have all the attributes on their traits list but bring other strengths to the organization. This can limit creativity and controlled chaos; two ingredients for growing companies to remain fresh and competitive.

Annotation 14dGender-Bender MentoringQuestions: What important lessons about today’s work-life realities can young women teach older male bosses?Any time you get two people who differ widely in traits and background to talk to each other, they both benefit. Many SWMMs (senior white male managers) don’t really know what’s going on with the changes in the work environment, but they’re willing to learn. I once met a very savvy SWMM who said that most of his counterparts wouldn’t really understand the challenges women in business face until their daughters experienced it and called home to complain and get advice.

I like this idea. But don’t stop here—get a wide variety of people in an organization to talk, and see what happens. It will shake things up, but the final result should be better.

Annotation 14eIt’s Nice to Be AppreciatedQuestions:

Given the proven motivational power of timely and well-deserved recognition, why do so many mangers fall short in this regard? What can be done to create an organizational “culture of appreciation”?Most managers get so caught up in planning and strategizing that they fail to take time to connect with their employees on a regular basis. Others get so bogged down in the day to day operations and crisis management they forget to come up for air and talk with their employees. If they did, they would remember to take a few moments to catch their employees in the act of doing good work….and then recognize them for their contribution. In many cases gratitude can cost a company no money, just a couple of minutes that it takes to write a quick thank you note. However, the return on this small investment of time is huge. Employees are more motivated, loyal and interested in contributing to the company’s success. When was the last time you sent a thank you note?

Annotation 15aWinning Hearts and MindsQuestions: How well do you handle change? What do you trust more, your heart (emotions) or your mind (rational deliberation)? ExplainManagers need to remember that everyone responds to change differently. Fear may have a negative impact. In addition, people’s logical minds may be in conflict with their heart. People who tend to be optimistic and positive typically embrace change and view it as part of life’s adventure. Those of us who thrive on change we see life like kayakers on a river…..what’s around the bend? I hear the rushing of water…..this is going to be a great rapid! Ride the change!

For others, they want a clear view of what’s ahead and they certainly do not want to see unpredictable white water. They are comfortable with a calm, more consistent environment. Good teams have both. Good managers help them work together to deal with the change.

Annotation 15bLet’s Go!Questions: How well would you do if you reported directly to Bartz? Do you think her battle with breast cancer back in 1992 affected her attitude about change and everyone having a sense of urgency? Explain.Carol Bartz would be great to have as a boss. With her motto of “Fail fast-forward” I think she would encourage her team to try new things, to be innovative and creative. This would be an energizing place to work. Yes, I’m sure surviving breast cancer has given her a greater appreciation for today and looking for what is possible. For those that look forward to new experiences, products and opportunities, having a brush with death certainly puts life in high gear. You never know what tomorrow will bring so get things done today.

Annotation 15cBack to the Opening CaseQuestions: From an OD perspective, what could David Zugheri have done to “unfreeze” the situation for successful change?The unfreezing process has to be completed effectively to support the changes. Sudden, unexpected change creates social disruption – as Zugheri learned the hard way. The goal is to have people look at the changes as improvement. This requires communication—and evidence that the change is actually an

improvement for them as individuals and for the organization. Selling a change as positive requires communication, and ideally the involvement of those impacted by the change. When they are part of the process they are much more likely to accept and support the change.

Annotation 15dLet’s Start a Good Clean Fight!Questions: Should managers try to stimulate conflict? How should they do it and how will they know if they’ve gone too far?I don’t think you need to get people upset to develop creative solutions. You need to get people engaged. You need to get people excited. You need to get people involved. Sometimes the process leads to people getting upset, particularly when the solution requires change or sacrifice or challenges people’s assumptions. But that should never be the goal. There’s enough conflict that just shows up when you have a disparate group of people trying to make things work, without a manager intentionally stirring things up. This perspective sounds to me like a rationalization for behaviors that are actually less than effective. “I must be right all the time, so doing this to my people must be right.” Wrong.

Annotation 15eNegotiating a Pay RaiseQuestions: Do you dislike asking for a pay raise? Why? How well would this advice work for you? Explain.From a purely financial perspective, if you’re not worth more than your company is paying you, you’re not worth keeping. You can’t just be “earning your keep” to get ahead; you need to be adding value to the company. Pay raises aren’t about fairness, no matter how hard compensation specialists try to make that true. Often, a raise has to be asked for, and substantiated. Those people who wait for someone to hand them a raise need to realize that no successful organization is going to give someone more money on its own initiative. Take two steps when asking for a raise: Show how much more you’re doing than was originally asked of you, and show what else you plan to do. Then—and most important—say what you expect in return. It’s a basic rule in sales, but it’s often neglected anyway—ask for the order.

Annotation 16aQuick QuizQuestions: What sort of control – feedforward, concurrent, or feedback – is involved in these two situations? Explain.Stricter travel policies and enforcement of the rules are examples of feedforward control as the anticipated impact of these changes would lead to a savings of almost $30 billion. UPS’ photo ID requirement is an example of feedback control as they are implementing this program in response to an undesirable situation. They are learning from mistakes in an effort to improve and avoid a similar situation from reoccurring.

Annotation 16bThe Truth About Crisis ManagementQuestions: Why do executives in crisis situations such as the BP oil spill disaster consistently ignore this simple advice? Is this equally good advice for dealing with a personal crisis? Explain

What’s the first response of a child when confronted with a broken window or spilled drink? “I didn’t do it.” Well, big offices, stock options, and country club memberships aren’t always granted on the basis of true maturity. So when those luxuries are threatened, the gut response is to deny culpability.

Good PR people know how to make the truth work as well as possible when presenting it to the public. Bad PR people are professional liars. In many cases, lying is the easy and cheap way out of a crisis. Organizations that choose to take the high road, even though it is more difficult in the short run, will be better off in the long term. Admitting mistakes and making tough changes lead to a stronger organization that deserves, and gets, more respect from stakeholders.

I am actually pretty darn good in a crisis. My rational side tends to kick in and I analyze the steps needed to get through it. I jump into linear mode when things get chaotic—what needs to be done first, then what, etc. I’ve found it’s my best way to get through a crisis with my sanity intact.

Annotation 16cJust One QuestionQuestions: As a customer, is the answer to this question a key indicator of your satisfaction? Explain why or why not. What other considerations affect whether you are a satisfied customer?I may put up with less than perfect service because I like some aspect of the product. Although I am not really a fan of one local Mexican restaurant, we chose to have dinner there one night because they were donating 10 percent of the sales that evening to my kid’s school. However, I would not post on my Facebook page a recommendation to eat there. To get this level of recommendation, a product or service has to pass my “best ever” test. After all, it’s my reputation on the line when I give my approval to something.

The final criterion that turns me into a loyal and satisfied customer is how well the organization handles a problem. Solve a problem quickly, nicely, and willingly, and you have a customer for life. But disappoint me—with a cold chicken enchilada (with no chicken in it) that I was served at that restaurant—and I will be glad I didn’t recommend the place.

Annotation 16dBack to the Opening CaseQuestions: What evidence of TQM can you find in the Apple Genius case? Explain.Greater flexibility and a strong service focus are characteristics of TQM that are evident in the Apple Genius bar. The idea of providing the best customer-service experience using a hotel concierge type approach came directly from their shoppers. Listening to employees and customers, and working on solutions to their problems is also very TQM. The fact that this program is a loss leader is not a perfect match on the TQM lower cost spectrum however in the long run it creates more loyal customers and increase new product sales. I would say the Genius Bar is a great investment and a good model of TQM at work.