ee Harvard Business School 9-484-170 MECALITH, INC, - HAY ASSOCIATES (3) . Exhibits 1 end 2 contain further excerpes from the Kay Associat report to Megalith, Inc. (cee Megalith, Inc. ~ Hay Associates (A) for the background surrounding the scudy and (B) for other data fron Hay's report) ‘These additional data are based on a 57-item Clinate Survey questionnaire that was completed by 48 enployees in the Finance Group; the 7 cop uanagers, and 41 other eaployees. Exhibit 1 represents responses to seven of the questions contained in the Hay Climate Survey queetionneire, All responses have been scaled es percentiles in comparison vith a data base coneseting of several, thousand other partictpants fros maay other companies. For example, the Negalith Finance Group's top managers felt nore positive about Megalith's reporting structure (question "A") than 72 por cent of all the survey participants in che date base felt about thetr own Feporting structures. Exhibit 2 plots a "elinate profile" based upon ansvers to all 5? Guestions. (The eight dimensions of climate shown in Exhibit 2 vere created by using a mathenatical technique called "factor analyeis,” aod Climate Sucvey data from hundreds of companies.) Scores for the Megalich Finance Group are displayed separecely in percentile form (again relative to the large data base) for the top management respondents and for the general sanple of respondents. ‘The eight dimensions of organizational climate are defined as follows: Orgenizetional Clarity: The degree to which the structures, functional patterns Gnd managerial intentions of the organization are clearly perceived by ts members. Decision-Making Style: The extent to which decisfons are wade in 3 tinely ind rational manner, vith attention to the long-term effects of the actions being taken. This case wes prepared by John A, Seeger, with che cooperation ot Way Astociates, under the cupervision of Professor John P. Kotter and Assistant Professor Anne Harlan, as 2 basis for clase discuesion rather then as an exenple of edther effective or ineffective handling of an administrative situation, Te vas updated by Ceorge W. Baird, Jr. of Hay Associates. Copyright © 1984 by che President and Fellows of Harvard College No part ofthis puiton maybe repreduce, seed in ctrl sites raid nan frm ey ay mean decent ects phaocopig’ ending. er ernst teen spec ot Henar Bousen Sel Drombuted by HBS Case Seven, HarardBainas School Boson, Ma GS Pred in USA-2- 484-070 Organ{zational Integration: The extent to uhich various subunits cooperate ‘and communicate effectively tovard the achievenent of overall organization objectives. Management Style: The extent to vhich people perceive encouragement to use their own initiative in performing their jobs, feel free to question constraints and senso cupport fron higher levels of management vhen needed. Rerformanee Ors ‘accountabiiity for cl performance. ont The extent of emphasis placed upon individual ely defined end results and high levels of Organizational Vitality: The extent to which people see the organization ‘as 2 dynamic one, as reflected by the ventureconeness of ite goals, the tnnovativeness of its decisions, and its responsiveness to ~ changing conditions. Conpensacion: The extent to vhich the compensation system 1s seen equitable, competitive, and related to performance. Human Resource Developsent: The extent to which individuals perceive ‘Opportunities within the organization which will alloy people to develop £0 their full potential.484-070 Exhtbie 1 MECALITH, INC. ~ HAY ASSOCIATES (B) HAY MANAGEMENT CLIMATE SURVEY Cette A Specizen Questions To what extent does the current reporting structure facdlicate or binder Amplenentation of the organization GREATLY HINDERS 1 2 3 4 5 6 7 GREATLY FACILITATES To what extent are people in this organization free to take Amdependent actions that are necessary to carry out their job responsibilities? TO AVERY GREAT EXTENT 7 6 5 4 3 2 1 TOA VERY LITTLE EXTENT To what extent are the goale in this orgenization truly challenging? TO AVERY GREAT EXTENT 7 6 5 4 3 2 1 TOA VERY LITTLE EXTENT AFOLUOWER 1 2:3 4 5.8 7 A PACESETTER E. Considering che work you do, how vould you describe your present compensation? VERY UNSATISFACTORY 1 2 3 4 5 6 7 VERY SATISPACrORY Ay tn celation to your performance? 2, Im relation to other jobs of siatler eize and know-how vequlrenenes within the organization? In relation to comparable Jobs 1a other companies? 0 1 2 3 4 «5 6 80 oF 4 ats ¥ 2 t Arc c n 4 ? s > . 4 ¥ z 4 aL uy . 2 ha . 4 t Mogalith, Tne. : Top Managenent 7 Finence Groap 6 <== General Sample 61Exhible 2 , HAY MANAGEMENT CLIMATE SURVEY Sub-Unit Results [a 2) lOrganizational = Pertormance Iclerity Integration | | Orientation [Compensation Decision Management | | | Organizational] | [Human Making Style Vitality Resource Dev. ) { 109] 75} a 25