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INTEGRATIVE CASE 1.0 DEVELOPING GLOBAL TEAMS TO MEET 21 ST

CENTURY CHALLENGES AT W.L. GORE & ASSOCIATES

OVERVIEW

Due to the challenges of a global marketplace, business teams are spread over three continents. The challenge of having a successful global presence requires virtual teams to enable a high degree of coordination in the development, production and marketing of products to customers across the world. Growth and globalization present significant challenges for W. L. Gore as it strives to maintain a family-like, entrepreneurial culture. Gore’s culture maximizes individual potential in a creative environment. The culture results from a commitment to technology for developing quality products. This strategy is carried out through a unique approach to leadership. What practices have to change to accommodate changing realities?

DISCUSSION QUESTIONS

1. Describe Gore’s global organizational design challenge? 2. What should Gore do to build effective global teams? 3. How will Gore’s culture affect the virtual global teams? 4. What is Gore’s strategy for the 21st century?

INTEGRATIVE CASE 2.0 RONDELL DATA CORPORATION

OVERVIEW

The Rondell Data Corporation considers centralization and decentralization which pertains to the hierarchical level at which decisions are made. In a mechanistic design, the structure is centralized, whereas an organic design uses decentralized decision making. This case presents an excellent opportunity to have the class apply the concepts of mechanistic and organic designs, centralization and decentralization, and formal and informal organizations as described in the text. Use the following three questions to guide the discussion and analysis.

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DISCUSSION QUESTIONS 1. Describe the management style at Rondell Data Corporation.

2. Would you classify Rondell Data Corporation as a mechanistic or organic design?

3. What challenges does Rondell face?

INTEGRATIVE CASE 3.0 IKEA: Scandinavian Style

OVERVIEW

In 1943, at age 17, Ingvar Kamprad formed IKEA. Anticipating the rising consumerism amid the rebuilding boom that would follow the war, IKEA moved quickly, providing families with low-cost furniture designs through the convenience of catalogue sales. With the opening of the company’s first showroom in 1953.

Kamprad united a variety of suppliers under the IKEA umbrella, coordinating long run production schedules and controlling distribution. That model expanded in 1964 with the introduction of the first warehouse store, eliminating an entire step in product distribution by allowing warehouse container pick-up by customers. Over the decades, IKEA produced a unique global brand famous for innovation. The company’s devotion to lifestyle solutions led to the expansion of product lines and the expansion of global markets. By 2010 there were 332 IKEA stores in 41 countries..

DISCUSSION QUESTIONS 1. What are IKEA’s organizational design elements? 2. How does IKEA approach innovation?. 3. Describe IKEA’s culture. 4. What challenges does IKEA face?

INTEGRATIVE CASE 4.0 ENGOR CHEMICAL PAKISTAN LIMITED—RESTRUCTURING THE MARKETING DIVISION

OVERVIEW

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

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Engro Chemical Pakistan Limited was established in 1965 and eventually became Engro1 Chemical Pakistan Limited (ECPL) in 1991, when Exxon divested its fertilizer business. Engro was a major competitor in Pakistan’s fertilizer market and the second largest producer of urea in Pakistan.. It was also a market leader in blended fertilizers and had diversified into other sectors. Engro conducted an internal survey to ascertain how well the newly implemented sales structure was functioning. The company had undertaken a restructuring of the marketing division to retain midlevel employees and to become more customer focused.

Feedback had flagged a number of issues, which included (1) the need for development of new competencies to prepare employees to handle changes in their tasks; (2) the fear and anxiety of employees losing authority; (3) the confusion from new reporting relationships (4) the uncertainty and dissatisfaction among Tier IV officers regarding their upward mobility; and (5) the lack of coordination with other divisions about the restructuring of the marketing division.

DISCUSSION QUESTIONS 1. Describe the culture at Encor. 2. Why was there a need for restructuring? 3. What challenges did Encor face during the restructuring? 4. Analyze the results of the structural change?

INTEGRATIVE CASE 5 .0 FIRST UNION: AN OFFICE WITHOUT WALLS

OVERVIEW

Meg’s division was responsible for both employee training and management development, and the services that her staff provided were very visible in the organization. Her division served the needs of those units directly tied to serving consumers and enjoyed high status. Meg was promoted to the level of vice president. One week after the announcement of her promotion, her boss told her that she would receive a new office with new furniture However, the president considered the office too large and would have to be “modified” to conform to new building regulations. Meg wondered why she was the first person to fall victim to this regulation.

First Union had no ranking female executives at or above the level of vice president prior to Meg’s promotion. This fact had prompted intervention from the

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Equal Employment Opportunity Commission, who encouraged First Union to promote female managers. Meg felt awkward about being the first female to pave the way.

DISCUSSION QUESTIONS 1. What is the main issue in this case? 2. What are the forces for cultural change at First Union? 3. Discuss the use of power at First Union. 4. What political tactics should Meg use?

INTEGRATIVE CASE 6.0

LEAN INITIATIVES AND GROWTH AT ORLANDO METERING COMPANY

OVERVIEW

The Orlando Metering Company was one of several facilities owned by a leading manufacturer of water meters for the worldwide utility industry. Due to the tremendous success the organization achieved, the corporate headquarters decided to transfer four new product lines to the Orlando facility. However, the organization was currently experiencing some very tough challenges due to the recent change and expansion. The energy and commitment of the employees were at low. The corporate headquarters gave Ed and his leadership team three months to turn things around. .

DISCUSSION QUESTIONS 1. Why was employee morale low? 2. Why does the culture have to fit the organizational design? 3. What structural change did Ed implement? 4. What should Ed do to reduce turnover and absenteeism?

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INTEGRATIVE CASE 7.0 Sometimes a Simple Change Isn’t So Simple

OVERVIEW

The computerized medication administration record (MAR) was a chart of all of the medications administered to a patient by a hospital. Kate, a programmer/analyst in the Management Information Systems department, led a team to computerize the MAR. The team had been working on the pilot project for a year and hoped for a smooth execution. The computerized MAR was launched and immediately failed. By 10:00 a.m., floor nurses and staff pharmacists complained that the system did not work and was too complicated. After hearing nurses’ complaints, physicians expressed concern about patient safety. At 1:30 p.m., the computer system crashed, and the MAR project was suspended. Kate assembled the project team to study the project failure. Kate will make a presentation to Central Hospital’s management group on the MAR project failure.

DISCUSSION QUESTIONS

1. What structural change is indicated at Integrated Health? 2. What caused MAR to fail? 3. Why did the nurses resist the change to the MAR? 4. What techniques should be used to overcome the barriers to change at Integrated and implement change successfully?

INTEGRATIVE CASE 8.0 Costco: Join the Club

OVERVIEW

In 2010, Costco’s reputation for rock-bottom pricing and razor-thin profit margins helped the company to maintain its position as the nation’s fourth largest retailer and the number one membership warehouse retailer. Costco has a unique corporate culture that values its employees. The no-frills warehouse-club concept exemplifies the much-maligned “big box” store – merchandise stacked floor to © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

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ceiling. Costco reflects industry standards and consumer expectations for providing limited selection, volume buying, and low pricing. Viewing people as the organization’s “competitive edge,” labor and benefits comprise 70% of Costco’s operating costs. The company maintains its devotion to a well-compensated workforce and will not sacrifice the well-being of its employees for the sake of profits.

DISCUSSION QUESTIONS 1. Describe the culture at Costco. 2. How does Costco motivate its employees? 3. What environmental issues does Costco face? 4. How is Costco a socially responsible company?

INTEGRATIVE CASE 9.0 The Donor Services Department

OVERVIEW

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

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

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INTEGRATIVE CASE 10.0 Cisco Systems: Evolution of Structure

OVERVIEW

The evolution of Cisco from a university campus networking solution to a global technology leader has been a dynamic process. The speed of technological innovation means that managers are already talking about the “next new thing” during the launch of each new product or service. Parallel with the rapid technological evolution at Cisco are the changes in organizational structure. As Cisco expanded, visionary John Chambers was brought in as CEO, and he expanded the company into advanced technologies. By 2000, Cisco had attained a brief designation as the world’s most valuable company. Will the evolution of Cisco continue? And if so, what will it look like? Company history indicates that, just as a quick response is needed in the rapid evolution technology products and services, the company must remain aware of structural changes needed within the organization to maintain its leadership position.

DISCUSSION QUESTIONS

1. Discuss the organizational structure of Cisco Systems? 2. What design changes were needed? 3. How did globalization affect Cisco’s structure? 4. How has Cisco’s structure continued to evolve?

INTEGRATIVE CASE 12.0 Disorganization at Semco: Human Resource

Practices As a Strategic Advantage*

OVERVIEW

Semco, based in São Paolo, Brazil, was considered one of the most innovative democratic workplaces in the world. Ricardo Semler, the majority stockholder of the privately-owned company, had handed over total control of the company to the employees. The company actively promoted the principles of democracy, © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

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transparent communications, constructive dissent, creativity, and employee growth. The outcome was noteworthy—Semco’s revenue, margins, employee strength, and business segments had expanded. Its inspired workforce was reflected in low attrition rates. As of 2003, Semco’s businesses comprised the production of industrial mixers, manufacturing of cooling towers for commercial estates, property and facility management services, environmental consulting, e-businesses, and inventory management. In 2007, Semco was also getting its hospitality business started and was dabbling in hospital and airport ventures. Several observers were especially startled by the cultural metamorphosis that Semco had achieved, given that it began as a top-down driven autocratic set-up.

DISCUSSION QUESTIONS 1. Describe the change in management style at Semco 2. How would you classify Semco’s organizational design? 3. Describe the Human Resources policies at Semco? 4. How did Semco handle downsizing?