Running head: ROTHAERMEL EXERCISE 3
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Rothaermel Exercise 3
Holly Koob
Liberty University
BUSI 690
Dr. Blossom
July 23, 2017
ROTHAERMEL EXERCISE 3
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Rothaermel Exercise 3 – Chapter 11
1. It is important for an organization to have alignment between its strategy and
structure because it directly impacts the firm’s performance. A simple structure
works with small firms with flat organizational complexity. A functional structure fits
better with groupings of employees based on expertise and an M-form structure
works best with large corporations. If an organization’s structure does not match
their strategy the overarching goals of the firm will not be met and employees will not
all be on the same page.
2. I have worked in companies that had a very strong culture, and some that did not have
much of any at all. The difference is mainly how everyone gets their jobs done and
how the company can be effective or not. If all of the employees are on the same
page and working in the same direction, it will be effective, if a number of employees
are all out for themselves without that company direction, goals will not be met and
most of the time, employees will not be happy. One company with very strong
culture is The Ritz-Carlton. The hotel company starts the employee’s career with
extensive training into the background, culture, goals, and guest experiences. Then,
the employee starts in training sessions behind the scenes before actually performing
in front of guests. Finally, when employees “ladies and gentlemen” are in front of
guests, they truly represent the hotel company and all of it’s values and norms. For
example, each employee always has on them a “credo card” with information on the
memorized values and core competencies of the company. Employees also use
specific language, dress a very specific way and treat all guests with respect. The
goal of each employee is to “wow” guests each and every day. The training and
ROTHAERMEL EXERCISE 3
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respect instilled in each employee, as well as the empowerment to do whatever it
takes to make things great for guests definitely contributes to the value that makes a
Ritz-Carlton, a Ritz-Carlton.
Rothaermel Exercise 3 – Chapter 12
1. A top management team can lower the chances that key managers will pursue their
own self-interest at the expense of stockholders by offering executive compensation
packages which include company stock. This means manager’s compensation is
directly tied to stock value, which is in turn, tied to firm performance. The leadership
team can lower the chances that key managers will pursue their own self-interest over
that of the employees by tying in the performance of the team to compensation, not
just that individual person. Also, other key stakeholder’s interests can be held with
value by instilling a strong culture with positive, healthy climate.
2. 3. Nike would be a fairly simple company to work with and encourage to move
outside of just the footwear and apparel lines. I would tell Nike to create jobs in
uneducated and poor areas and teach all employees the position, both culturally as
well as the actual job. Allow employees the chance to go to school through tuition
reimbursement options and even work on providing footwear to schools and medical
facilities in order to allow even more education and profitability to be poured into the
society.
