MANAGEMENT AND ORGANISATIONAL BEHAVIOUR 7E

Mullins
Pearson Education !!"
#ase Title Source$
Nu%&er$
Len't($
Teac(in'
Note
Geo'ra)(ical and
Industr* Settin'$
#o%)an* Si+e$
Ti%e,ra%e
#ase Decision Issue
#(a)ter - T(e Nature o, Or'anisational Be(a.iour
Management by
Whose
Objectives?
(HBR Classic)
HBR Article
Reprint #
R!"H #p
Organi$ational Behavio%r
an& 'ea&ership
(n this "#) classic HBR article*
Harry 'evinson shares practical
insights into the mysteries o+
motivation an& ta,es a +resh loo,
at the %se an& ab%se o+ the most
po-er+%l tools +or inspiring an&
g%i&ing comple. organi$ations/ He
arg%es that to motivate people
s%ccess+%lly* management m%st
+oc%s on the 0%estion* 1Ho- &o
-e meet both in&ivi&%al an&
organi$ational re0%irements?1
When -e ma,e ass%mptions
abo%t in&ivi&%al motivations an&
increase press%re base& on them*
-e ignore the +act that people
-or, to meet their o-n
psychological nee&s/ Commitment
m%st &erive +rom the in&ivi&%al2s
-ishes to s%pport the
organi$ation2s goals/ 3et* the
in&ivi&%al2s &esires are entirely
absent +rom most per+ormance
meas%rement systems4 managers
ass%me that these &esires are
per+ectly aligne& -ith corporate
goals an& that i+ they2re not* the
in&ivi&%al sho%l& move on/ 5el+6
motivation occ%rs -hen in&ivi&%al
nee&s an& organi$ational
re0%irements converge/
5%ccess+%l management systems
begin -ith the employee2s
objectives/ 7he manager2s tas, is
to %n&erstan& the employee2s
nee&s an& then* -ith the
employee* assess ho- -ell the
organi$ation can meet them/
892s 7-o6
:eca&e
7rans+ormation;
<ac, Welch2s
'ea&ership
HB5=
# #6!##6">
?@p
Anite& 5tates* 8lobal4
in&%strial conglomerate4
B" billion reven%es4
?#!* employees4 "#C"6
"##C
89 is +ace& -ith Welch2s
impen&ing retirement an& the
0%estion on many min&s is
-hether anyone can s%stain the
blistering pace o+ change an&
gro-th characteristic o+ the Welch
era/ A+ter brie+ly &escribing 892s
heritage an& Welch2s
trans+ormation o+ the company2s
b%siness port+olio o+ the "#Cs*
the case chronicles Welch2s
revitali$ation initiatives thro%gh
the late "#Cs an& "##s/ (t
+oc%ses on si. o+ Welch2s major
change programs; 7he 15o+t-are1
(nitiatives* 8lobali$ation*
Re&e+ining 'ea&ership* 5tretch
Objectives* 5ervice B%siness
:evelopment* an& 5i. 5igma
D%ality/ 7eaching =%rpose; Can be
%se& to &evelop m%ltiple lessons*
incl%&ing corporate strategy
&evelopment* trans+ormational
change* management an&
lea&ership* an& corporate
rene-al/
5o%th-est
Airlines; Asing
H%man
Reso%rces +or
Competitive
A&vantage (A)
Case HR"A ?@p Anite& 5tates4 airlines4
B?/? billion reven%es4
"?* employees4 "##@
(n "##@ both Anite& Airlines an&
Continental Airlines la%nche& lo-6
cost airlines6-ithin6an6airline to
compete -ith 5o%th-est Airlines/
Erom "##" %ntil "##! 5o%th-est
ha& increase& its mar,et share o+
the critical West Coast mar,et
+rom ?FG to @>G/ 7his case
consi&ers ho- 5o%th-est ha&
&evelope& a s%stainable
competitive a&vantage an&
emphasi$es the role o+ h%man
reso%rces as a lever +or the
s%ccess+%l implementation o+
strategy/ As,s -hether
competitors can s%ccess+%lly
imitate the 5o%th-est approach/
5o%th-est
Airlines; Asing
H%man
Reso%rces +or
Competitive
A&vantage (B)
Case # HR"B
)p
Anite& 5tates4 airlines4
B?/? billion reven%es4
"?* employees4 "##@
:%ring a s%mmer e.ec%tive
program +or h%man reso%rce
e.ec%tives* the (A) case -as
assigne&/ A+ter rea&ing the case*
a st%&y gro%p o+ +o%r e.ec%tives
&eci&e& that the &escription in the
(A) case -as too positive an&
co%l& not be acc%rate/ 7o test this*
the +o%r con&%cte& an imprompt%
+iel& st%&y o+ the 5o%th-est
station in 5an <ose/ 7hese
e.ec%tives intervie-e& si.
employees on &%ty/ 7hey reporte&
their +in&ings &%ring the case
&isc%ssion the +ollo-ing &ay/ 7his
case is base& on that report/
5o%th-est
Airlines; Asing
H%man
Reso%rces +or
Competitive
A&vantage (A)
an& (B)*
7eaching Hote
7eaching Hote
# HR"7 !p
Anite& 5tates4 airlines4
B?/? billion reven%es4
"?* employees4 "##@
An&erstan&ing
I=eopleJ =eople
HBR Article
Reprint
#R@F9 #p
H%man reso%rces
management
Hearly all areas o+ b%siness66not
j%st sales an& h%man reso%rces66
call +or interpersonal savvy/
Relational ,no-6ho- comprises a
greater variety o+ aptit%&es than
many e.ec%tives thin,/ 5ome
people can 1tal, a &og o++ a meat
tr%c,*1 as the saying goes/ Others
are great at resolving
interpersonal con+licts/ 5ome have
a ,nac, +or translating high6level
concepts +or the masses/ An&
others thrive -hen they2re
managing a team/ Beca%se people
&o their best -or, -hen it most
closely matches their interests*
the a%thors conten&* managers
can increase pro&%ctivity by
ta,ing into acco%nt employees2
relational interests an& s,ills -hen
ma,ing personnel choices an&
project assignments/ A+ter
analy$ing the psychological tests
o+ more than )* b%siness
pro+essionals* the a%thors
i&enti+ie& +o%r &imensions o+
relational -or,; in+l%ence*
interpersonal +acilitation*
relational creativity* an& team
lea&ership/ 7his article e.plains
each one an& o++ers practical
a&vice to managers66ho- to b%il&
a -ell6balance& team* +or
instance* an& ho- to ga%ge the
relational s,ills o+ potential
employees &%ring intervie-s/
An&erstan&ing these +o%r
&imensions -ill help yo% get
optimal per+ormance +rom yo%r
employees* appropriately re-ar&
their -or,* an& assist them in
setting career goals/ (t -ill also
help yo% ma,e better choices
-hen it comes to yo%r o-n career
&evelopment/ 7o get starte&* try
the a%thors2 +ree online
assessment tool* -hich meas%res
both yo%r orientation to-ar&
relational -or, in general an&
yo%r interest level in each o+ its
+o%r &imensions/
#(a)ter /- A))roac(es to or'anisation and %ana'e%ent
(s Management
5till a 5cience?
HBR Reprint
Article
# #?F! Cp
Hegotiations Ere&eric, 7aylor2s tra&itional
scienti+ic approach to
management promise& to provi&e
managers -ith the capacity to
pre&ict an& control the behavior o+
the comple. organi$ations they
le&/ B%t the -orl& most managers
no- inhabit o+ten appears to be
%npre&ictable an& even
%ncontrollable/ (n the +ace o+ this
more volatile b%siness
environment* the ol&6style
mechanisms o+ 1scienti+ic
management1 seem positively
co%nterpro&%ctive/ <%st as
managers have become more
preocc%pie& -ith the volatility o+
the b%siness environment*
scientists have also become
preocc%pie& -ith the inherent
volatility66the 1chaos1 an&
1comple.ity166o+ nat%re/ 7hey are
&eveloping ne- r%les +or comple.
behavior in physical systems that
have intrig%ing parallels to the
,in& o+ organi$ational behaviors
to&ay2s companies are trying to
enco%rage/
Why Har&6
Hose&
9.ec%tives
5ho%l& Care
Abo%t
Management
7heory
HBR Article
Reprint
# R!#:
)p
8eneral management 7heory o+ten gets a b%m rap
among managers beca%se it2s
associate& -ith the -or&
1theoretical*1 -hich connotes
1impractical/1 B%t it sho%l&n2t/
Beca%se e.perience is solely
abo%t the past* soli& theories are
the only -ay managers can plan
+%t%re actions -ith any &egree o+
con+i&ence/ 7he ,ey -or& here is
1soli&/1 8ravity is a soli& theory/
As s%ch* it lets %s pre&ict that i+
-e step o++ a cli++ -e -ill +all*
-itho%t act%ally having to &o so/
B%t b%siness literat%re is replete
-ith theories that &on2t seem to
-or, in practice or act%ally
contra&ict each other/ Ho- can a
manager tell a goo& b%siness
theory +rom a ba& one? 7he +irst
step is to %n&erstan& ho- goo&
theories are b%ilt/ 7hey &evelop in
stages; gathering &ata* organi$ing
it into categories* highlighting
signi+icant &i++erences* then
ma,ing generali$ations e.plaining
-hat ca%ses -hat* %n&er -hich
circ%mstances/ Eor instance*
pro+essor Ananth Raman an& his
colleag%es collecte& &ata sho-ing
that bar co&e6scanning systems
generate& notorio%sly inacc%rate
inventory recor&s/ 7hese
observations le& them to classi+y
the types o+ errors the scanning
systems pro&%ce& an& the types
o+ shops in -hich those errors
most o+ten occ%rre&/ Recently*
some o+ Raman2s &octoral
st%&ents -or,e& as cler,s to see
e.actly -hat ,in&s o+ behavior
ca%se the errors/ Erom this
+o%n&ation* a soli& theory
pre&icting %n&er -hich
circ%mstances bar co&e systems
-or, an& &on2t -or, is beginning
to emerge/ Once -e +orgo one6
si$e6+its6all e.planations an& insist
that a theory &escribes the
circ%mstances %n&er -hich it &oes
an& &oesn2t -or,* -e can bring
pre&ictable s%ccess to the -orl& o+
management/
5pin6O%t
Management;
7heory an&
=ractice
B%siness
Hori$ons Article
# BHCC "p
Organi$ational behavio%r
an& lea&ership
7he str%ct%re o+ a +irm plays a ,ey
role in b%il&ing an innovative an&
mar,et6&riven organi$ation/ :%e
to +ail%res in the str%ct%re o+
companies* gro-th opport%nities
are sometimes not +%lly reali$e&/
5pin6o%t management is a
process by -hich a ne- or
e.isting part o+ the organi$ation is
&iversi+ie& +rom the parent
company/ 7he goal is to &evelop
in&epen&ently relate& activities
that enhance the +irm2s innovative
capabilities -hile pro+iting at the
same time +rom the assets o+ the
parent company* thereby
improving the staying po-er o+
both/
#(a)ter 0- T(e Nature o, Or'anisations
7he Rit$6Carlton
Hotel Co/
HB5=
##6F"6"F!
!"p
7eaching Hotes
##6F?6""!
Washington* :C4
hospitality4 B"/> billion
reven%es4 "C*
employees4 ?
(n j%st seven &ays* 7he Rit$6
Carlton trans+orms ne-ly hire&
employees into 1'a&ies an&
8entlemen 5erving 'a&ies an&
8entlemen/1 7he case &etails a
ne- hotel la%nch* +oc%sing on the
%ni0%e blen& o+ lea&ership* 0%ality
processes* an& val%es o+ sel+6
respect an& &ignity* to create
a-ar&6-inning service/ 7eaching
=%rpose; Allo-s st%&ents to
e.amine innovation an&
improvement in a service in&%stry/
Raises 0%estions o+ -hen an& ho-
to innovate in a s%ccess+%l service
operating system an& the
challenges o+ innovation +or a
bran& b%ilt on c%stomer
e.perience/ 7eaching points
incl%&e the role o+ lea&ership an&
val%es in creating a c%lt%re o+
service an& the nee& to manage
the tension bet-een stan&ar&i$e&
0%ality proce&%res an& the
c%ltivation o+ empo-ere&
employees -ho can c%stomi$e
each interaction to meet the
nee&s o+ their c%stomers/
7he =eople Who
Ma,e
Organi$ations
8o66or 5top
HBR Article
Reprint
#?F8 Cp
Organi$ational behavio%r
an& analysis
Managers invariably %se their
personal contacts -hen they nee&
to* say* meet an impossible
&ea&line or learn the tr%th abo%t a
ne- boss/ (ncreasingly* it2s
thro%gh these in+ormal net-or,s66
not j%st thro%gh tra&itional
organi$ational hierarchies66that
in+ormation is +o%n& an& -or,
gets &one/ B%t to many senior
e.ec%tives* in+ormal net-or,s are
%nobservable an& %ngovernable66
an&* there+ore* not amenable to
the tools o+ management/ As a
res%lt* e.ec%tives ten& to -or,
aro%n& in+ormal net-or,s or*
-orse* try to ignore them/ When
they &o ac,no-le&ge the
net-or,s2 e.istence* e.ec%tives
+all bac, on int%ition66scarcely a
&epen&able tool66to g%i&e them in
n%rt%ring this social capital/ (t
&oesn2t have to be that -ay/ (t is
entirely possible to &evelop an&
manage in+ormal net-or,s
systematically* say management
e.perts Cross an& =r%sa,/
5peci+ically* senior e.ec%tives
nee& to +oc%s their attention on
+o%r ,ey role6players in in+ormal
net-or,s; Central connectors lin,
most employees in an in+ormal
net-or, -ith one another4 they
provi&e the critical in+ormation or
e.pertise that the entire net-or,
&ra-s on to get -or, &one/
Bo%n&ary spanners connect an
in+ormal net-or, -ith other parts
o+ the company or -ith similar
net-or,s in other organi$ations/
(n+ormation bro,ers lin, &i++erent
s%bgro%ps in an in+ormal net-or,4
i+ they &i&n2t* the net-or, -o%l&
splinter into smaller* less e++ective
segments/ An& +inally* there are
peripheral specialists* -ho anyone
in an in+ormal net-or, can t%rn to
+or speciali$e& e.pertise b%t -ho
-or, apart +rom most people in
the net-or,/ 7he a%thors &escribe
the +o%r roles in &etail* &isc%ss the
%se o+ a -ell6establishe& tool
calle& social net-or, analysis +or
&etermining -ho these role6
players are in the net-or,* an&
s%ggest -ays that e.ec%tives can
trans+orm ine++ective in+ormal
net-or,s into pro&%ctive ones/
Mary Kay
Cosmetics (nc/
HB5=
##6@C"6"?F
"!p
7e.as4 cosmetics4 B"
million sales per year4
"#F!6"#C
(ntro&%ces the st%&ent to Mary
Kay Cosmetics* (nc/* its b%siness*
its strategy* an& its organi$ation/
=rovi&es the necessary
bac,gro%n& +or %n&erstan&ing the
contrib%tions o+ Mary Kay Ash* the
company2s +o%n&er an& chairman/
#(a)ter "- Or'anisational Goals$ Strate'* and Res)onsi&ilities
Ben L <erry2s
Homema&e (ce
Cream* (nc/;
Keeping the
Mission(s) Alive
HB5=
##6!#?6?>
??p
B%rlington* M74 ice
cream4 mi&6si$e4 B>C/>
million "#C# sales4 !!
employees4 "##"
Ben L <erry2s is an anti6
establishment* val%es6&riven
company that has become a
s%ccess+%l vent%re/ 7he &ominant
+o%n&er* Ben Cohen* is not an
e++ective manager* b%t he brings
creative mar,eting an& pro&%ct
s,ills that have been important to
the company2s s%ccess/ He also is
controlling sharehol&er an& the
+orce behin& the company2s
socially6min&e& c%lt%re/ One o+
the many policies that have
re+lecte& Ben2s val%es b%t -hich
has create& &i++ic%lty in managing
the organi$ation is the > to "
compensation &i++erential bet-een
the top an& the bottom o+ the
organi$ation/ Ap to mi& "##* the
company -as operating in an
e.plosive gro-th b%siness -ith
relatively -ea, competitors4 this
has change& by the time o+ the
case in 5eptember "##/ 7he case
opens as Ch%c, 'acy is ta,ing
over as presi&ent/ He nee&s to
&eci&e -hat to &o abo%t the > to "
r%le an& the relate& iss%es o+
Ben2s role* an& the val%e o+ the
company2s co%nterc%lt%re style/
5t%&ents m%st consi&er the
&i++ic%lty an& importance o+ the
general manager2s responsibility
in reconciling company val%es
-ith commercial imperatives an&
to consi&er the e++ect o+
compensation policy on morale
an& organi$ational e++ectiveness/
<an Carl$on;
C9O at 5A5 (A)
HB5=
# #6!#?6"@#
"Fp
5-e&enN8lobal4
airline4 large4 B@
billion sales4 ?*
employees4 "#C6
"##
:escribes <an Carl$on2s actions on
ass%ming the C9O2s responsibility
at 5A5 in a time o+ +inancial an&
organi$ational &i++ic%lty/ A+ter
tracing Carl$on2s &evelopment as
a manager* it +oc%ses on the -ay
in -hich he &evelope&* then
comm%nicate& a clear an&
motivating strategic mission to
become 1the -orl&2s best
b%sinessman2s airline/1 A+ter a
spectac%lar t%rnaro%n&*
organi$ational problems re6
emerge* an& the case concl%&es
-ith Carl$on -on&ering i+ his
1secon& -ave1 can provi&e the
same impet%s that he gaine& on
his +irst -ave/ Highlights the
po-er o+ a clear an& -ell6
comm%nicate& strategic mission
(strategic intent)* b%t also
e.plores problems an& limits that
can arise/ 5peci+ically* +oc%ses on
the common problem o+
motivating mi&&le managers -ho
o+ten +eel &isen+ranchise& by +ront
line empo-erment/
WhatOs a
B%siness Eor?
HBR Article
Reprint #
R?"?C
Fp
5ocial enterprise L
ethics
(n the -a,e o+ the recent
corporate scan&als* it2s time to
reconsi&er the ass%mptions
%n&erlying American6style stoc,6
mar,et capitalism/ 7hat hea&y
&octrine66in -hich the mar,et is
,ing* s%ccess is meas%re& in
terms o+ sharehol&er val%e* an&
pro+its are an en& in themselves66
enrapt%re& America +or a
generation* sprea& to Britain
&%ring the "#Cs* an& recently
began to gain acceptance in
Continental 9%rope/ B%t no-*
many -on&er -hether the
American mo&el is corr%pt/ 7he
American scan&als are not j%st a
matter o+ &%bio%s personal ethics
or o+ rog%e companies +%&ging the
o&& billion/ An& the c%re +or the
problems -ill not come solely
+rom to%gher reg%lations/ We
m%st also as, more +%n&amental
0%estions; Whom an& -hat is a
b%siness +or? An& are tra&itional
o-nership an& governance
str%ct%res s%ite& to the
,no-le&ge economy? Accor&ing to
corporate la-* a company2s
+inanciers are its o-ners* an&
employees are treate& as property
an& recor&e& as costs/ B%t
-hereas that might have been
tr%e in the early &ays o+ in&%stry*
it &oes not re+lect to&ay2s reality/
Ho- a company2s assets are
increasingly +o%n& in the
employees -ho contrib%te their
time an& talents rather than in the
stoc,hol&ers -ho temporarily
contrib%te their money/ 7he
lang%age an& meas%res o+
b%siness m%st be reverse&/ (n a
,no-le&ge economy* a goo&
b%siness is a comm%nity -ith a
p%rpose* not a piece o+ property/
Corr%ption in
(nternational
B%siness (A)
HB5=
# #6)"6"?C
"p
B%siness an& government 9.plores vario%s aspects o+
corr%ption in international
b%siness/ 7his case is organi$e& in
t-o sections/ 7he +irst section
provi&es a broa& &isc%ssion o+ the
ethical* b%siness* an& legal
aspects o+ corr%ption/ 7he secon&
section provi&es a series o+
1caselets1 that are &esigne& to
promote &isc%ssion o+ ho-
st%&ents -o%l& act in partic%lar
sit%ations* as -ell as the potential
costs an& bene+its o+ these
actions/ 7eaching =%rpose; 7o
intro&%ce st%&ents to the iss%es
s%rro%n&ing corr%ption in
international b%siness/
Corr%ption in
(nternational
B%siness (B)
HB5=
# #6)"6"?#
"p
B%siness an&
government
Eoc%ses on e++orts to combat
corr%ption/ Approaches incl%&e
international la-s* international
agreements* e++orts by
international &evelopment
organi$ations* an& private e++orts
by +irms an& non6governmental
organi$ations/ 7eaching =%rpose;
7o intro&%ce st%&ents to the
iss%es s%rro%n&ing corr%ption in
international b%siness/
:a-n Riley at
America 7r%e
(A)
HB5=
# #6@"6F
")p
5an Erancisco* CA4 sports4
start6%p4 " employees4
"###6?
:a-n Riley is the C9ONCaptain o+
America 7r%e* the +irst coe&
syn&icate to race +or the
America2s C%p/ Over three years*
base& on her vision +or America
7r%e* she b%ilt the syn&icate +rom
scratch* bringing on investors an&
sponsors* &esigning an& b%il&ing a
boat* an& hiring a sailing cre- to
race it/ (n <%ne "###* Riley m%st
&eci&e ho- to han&le the 5an
Erancisco o++ice no- that America
7r%e2s base o+ operations is
moving to A%c,lan&* He-
Pealan&* -here racing -ill begin
in +o%r months/ 5he is +acing
press%re to phase o%t the o++ice to
c%t &o-n on costs* b%t Riley
believes that the people in 5an
Erancisco an& the -or, they are
&oing are ,ey to her vision +or
America 7r%e/ 5he m%st -eigh the
tension bet-een imme&iate
press%res to -in an& the longer6
term s%stainability o+ her vision/
7eaching =%rpose; 7o &emonstrate
the challenges o+ lea&ing a start6
%p; the importance o+
comm%nicating a vision* aligning
people aro%n& that vision* an&
e.ec%ting on it/ 7o e.plore iss%es
o+ gen&er an& po-er/
#(a)ter 1- T(e Nature o, Mana'e%ent
7he Rit$6Carlton
Hotel Co/
HB5=
##6F"6"F!
!"p
7eaching Hotes
##6F?6""!
Washington* :C4
hospitality4 B"/> billion
reven%es4 "C*
employees4 ?
(n j%st seven &ays* 7he Rit$6
Carlton trans+orms ne-ly hire&
employees into 1'a&ies an&
8entlemen 5erving 'a&ies an&
8entlemen/1 7he case &etails a
ne- hotel la%nch* +oc%sing on the
%ni0%e blen& o+ lea&ership* 0%ality
processes* an& val%es o+ sel+6
respect an& &ignity* to create
a-ar&6-inning service/ 7eaching
=%rpose; Allo-s st%&ents to
e.amine innovation an&
improvement in a service in&%stry/
Raises 0%estions o+ -hen an& ho-
to innovate in a s%ccess+%l service
operating system an& the
challenges o+ innovation +or a
bran& b%ilt on c%stomer
e.perience/ 7eaching points
incl%&e the role o+ lea&ership an&
val%es in creating a c%lt%re o+
service an& the nee& to manage
the tension bet-een stan&ar&i$e&
0%ality proce&%res an& the
c%ltivation o+ empo-ere&
employees -ho can c%stomi$e
each interaction to meet the
nee&s o+ their c%stomers/
Cambri&ge
Cons%lting
HB5=
# #6@#F6?!
Boston* MA4 cons%lting4 BC>
million reven%es
:escribes the sit%ation +acing the
hea& o+ a rapi&ly gro-ing
8ro%p; Bob
An&erson
>p in&%stry6+oc%se& gro%p -ithin a
cons%lting company/ Highlights
the &ilemmas o+ being a
1pro&%cing manager1 (i/e/* a
pro+essional -ho has both
in&ivi&%al pro&%ction as -ell as
management responsibilities)/
(ss%es raise& incl%&e; &elegation*
&eveloping s%bor&inates*
&eveloping an agen&a* an&
b%il&ing an organi$ation/ 7eaching
=%rpose; :emonstrates &ilemmas
o+ the pro&%cing manager2s role/
A 'etter to the
Chie+ 9.ec%tive
HBR Article
Reprint
#R?"8
Fp
Organi$ational behavio%r
an& lea&ership
Beyon& the recent acco%nting
scan&als* something is -rong -ith
the -ay most companies are
manage& to&ay/ 7hat2s the
message o+ this +ictional letter
+rom a boar& member to a C9O*
-ritten by <oseph E%ller* C9O o+
the strategy cons%lting +irm
Monitor 8ro%p/ 7he letter
highlights the challenges an&
comple.ities o+ r%nning a b%siness
in to&ay2s %ncertain environment/
7he letter a&&resses a single C9O
an& company* yet it is inten&e& to
spea, to e.ec%tives an& boar&s
every-here; 1(t -asn2t the
recession that ca%se& %s to ma,e
! ac0%isitions in ? years at very*
very high prices4 the nee& to +%el
Q%nreasonableR gro-th &i&/ Hor
-as it the recession that ca%se&
%s to e.pan& o%r capacity in
anticipation o+ gaining mar,et
share4 rather* it -as o%r o-n
overly optimistic sales +orecasts
that le& %s to that &ecision/ Where
&i& those +orecasts originate?
Erom line managers trying to +%l+ill
pro+it goals that -e create& a+ter
meeting -ith the analysts/ 7he
root ca%se o+ many o+ the
problems that became apparent in
the last ?@ months lies not -ith
the economy* not -ith 5eptember
""* an& not -ith the &ot6com
b%bble/ Rather* it lies -ith that
-illingness to be le& by o%tsi&e
+orces66in&ee&* o%r o-n lac, o+
conviction abo%t setting a co%rse/1
Restoring so%n&* strategic
&ecision ma,ing66thin,ing that
loo,s beyon& tomorro-2s analyst
reports66-ill go a long -ay to-ar&
,eeping those o%tsi&e +orces at
bay* accor&ing to E%ller/
<eanne 'e-is at
5taples* (nc/ (A)
(Abri&ge&)
HB5=
# #6@6F>
"@p
Boston* MA4 o++ice s%pplies4
B> billion reven%es4 !*
employees4 "##)
<eanne 'e-is* a+ter si. years -ith
5taples* (nc/* is promote& to
senior vice presi&ent o+
mar,eting/ 5he is to -or, +or
+i+teen months alongsi&e her
pre&ecessor* a legacy in the
organi$ation* 1learning the ropes1
be+ore he moves on/ 7his case is
set nine months a+ter she begins
-or,ing -ith the mar,eting
&epartment/ At this time* 5taples
has j%st emerge& +rom a perio& o+
prolonge& litigation aro%n& an E7C
antitr%st s%it challenging 5taples2
attempte& merger -ith O++ice
:epot/ =ost6merger* 'e-is m%st
&etermine ho- the mar,eting
&epartment can most e++ectively
an& e++iciently help the company
maintain its competitive e&ge in
an increasingly competitive an&
comple. mar,et/ 'oo,s at the
challenges a mi&&le manager
+aces 1ta,ing charge1 an&
managing change in a
revitali$ation sit%ation in -hich a
more evol%tionary approach is
appropriate/ 7eaching =%rpose; 7o
ill%strate the challenges o+
managing change in a
revitali$ation (as oppose& to
t%rnaro%n&) sit%ation in -hich a
more evol%tionary approach is
appropriate/ 7o e.plore the
challenges o+ managing change as
a mi&&le manager/ 7o manage the
net-or, o+ relationships/ 7o
highlight the challenges o+ the
1ta,ing charge1 process/
<eanne 'e-is at
5taples* (nc/ (B)
HB5=
# #6@##6@?
@p
Boston* MA4 o++ice s%pplies4
B> billion reven%es4 !*
employees4 "##)
5%pplements the (A) case/
Bill 8ates an&
the
Management o+
Microso+t
HB5=
# #6!#?6"#
"#p
Anite& 5tates4 comp%ter
so+t-are4 large4 B"/C billion
reven%es4 "##"
(n <%ly "##"* Microso+t has
achieve& recor& gro-th an&
pro+itability in the =C so+t-are
in&%stry/ 7he case +oc%ses on
Microso+t2s +o%n&er an& C9O* Bill
8ates* an& his top management
team* as they see, to retain the
innovation an& spirit o+ a small
company in a rapi&ly gro-ing an&
changing environment/ 5peci+ic
iss%es incl%&e the management o+
organi$ational comple.ity* c%lt%ral
change* C9O an& COO interaction*
compensation* an& lea&ership/
Managing
Sero.Os
M%ltinational
:evelopment
Center
HB5=
##6@#6?#
?p
Rochester* H34 copiers4
Eort%ne >4 @ employees
:escribes a manager2s role in
&eveloping a sta++ gro%p
responsible +or enhancing the
e++iciency o+ Sero.2s -orl&-i&e
logistics an& inventory
management systems/ (ll%strates
a range o+ management strategies
+or %p-ar& an& lateral in+l%ence in
a comple. organi$ational conte.t*
as -ell as the %se o+ a n%mber o+
innovative h%man reso%rce
management techni0%es/ (+ %se&
-ith <ohn A/ Clen&enin it allo-s
+or the &isc%ssion o+ career
&evelopment iss%es/
#(a)ter 7- Mana'erial Be(a.iour and E,,ecti.eness
<etBl%e Air-ays;
5tarting +rom
5cratch
HB5=
# #6C"6!>@
?p
7eaching Hotes
# #6C"6!CF
He- 3or,* H34 airlines4
start6%p4 #> employees4
?
<etBl%e Air-ays sho-s ho- an
entreprene%rial vent%re can %se
h%man reso%rce management*
speci+ically a val%es6centere&
approach to managing people* as
a so%rce o+ competitive
a&vantage/ 7he major challenge
+ace& by Ann Rhoa&es is to gro-
this people6centere& organi$ation
at a rapi& rate* -hile retaining
high stan&ar&s +or employee
selection an& a small company
c%lt%re/ 7eaching =%rpose; 7o
consi&er the role o+ h%man
reso%rce management*
lea&ership* an& val%es in a start6
%p vent%re* an& to a&&ress the
tension bet-een a strong
organi$ational c%lt%re an& rapi&
gro-th/
Microso+tOs Mega
=roject;
:eveloping
=eople an&
=ro&%cts
HB5=
# #6!6@
"#p
Re&mon&* WA4 comp%ter
so+t-are4 B? billion
reven%es4 !"*
employees4 "#)>6"##C
:escribes Microso+t2s h%man
reso%rce philosophies an& policies
an& ill%strates ho- they -or, in
practice to provi&e the company
-ith a major so%rce o+
competitive a&vantage/
5%mmari$es the evol%tion o+
Microso+t2s h%man reso%rce
philosophies an& policies/
:escribes employee &evelopment*
motivation* an& retention e++orts
in one o+ Microso+t2s pro&%ct
gro%ps/ Eoc%ses on Matt
Mac'ellan* a ?F6year6ol&* >6year
Microso+t veteran* partic%larly on
his care+%l &evelopment as a
project manager %n&er <im
Kaplan* his boss an& mentor/
:issatis+ie& -ith his project
management role* Mac'ellan
&eci&es to become a &eveloper
&espite the +act that he ha& never
-ritten co&e pro+essionally/
Kaplan is +ace& -ith a &i++ic%lt
&ecision o+ -hether to s%pport his
protege2s ra&ical career shi+t* an&
ho- to &o it not only to
Mac'ellan2s satis+action b%t also in
the organi$ation2s best interest/
7eaching =%rpose; 7o ill%strate the
role o+ senior management as
&eveloper an& coach o+ scarce
h%man assets an& the role o+
h%man reso%rce policy in
s%pporting an organi$ation2s
&evelopment o+ competitive
a&vantage/ (A &ecision6oriente&
implementation case)/
Mar, 7-ain
Bancshares (nc
HB5=
# #6!C>6")C
"Cp
5t/ 'o%is* MO4 ban,ing4
B)> million assets4 "#C@
:escribes the history*
management* an& organi$ation o+
an e.tremely s%ccess+%l ban,
hol&ing company/ 7he company
has ha& a very charismatic
chairman* has ma&e MBAs ban,
presi&ents at very early ages* an&
has a long recor& o+ innovation/
Ho- &ereg%lation an& a coming
change o+ lea&ership may
threaten the 1system1 that has
ma&e the ban, so s%ccess+%l/ 7he
teaching objectives are to &isplay
the a&vantages an& &ra-bac,s o+
management base& on a strong
personality an& strong val%es in
the +ace o+ major mar,et changes/
7he Eail%re6
7olerant 'ea&er
HBR
Article Reprint
# R?C:
Fp
Organi$ational behavio%r
an& lea&ership
17he +astest -ay to s%ccee&*1
(BM2s 7homas Watson* 5r/* once
sai&* 1is to &o%ble yo%r +ail%re
rate/1 (n recent years* more an&
more e.ec%tives have embrace&
Watson2s point o+ vie-* coming to
%n&erstan& -hat innovators have
al-ays ,no-n; Eail%re is a
prere0%isite to invention/
Altho%gh companies may grasp
the val%e o+ ma,ing mista,es at
the level o+ corporate practices*
they have a har&er time accepting
the i&ea at the personal level/ (n
this article* psychologist an&
+ormer Harvar& B%siness 5chool
pro+essor Richar& Earson an& co6
a%thor Ralph Keyes &isc%ss ho-
companies can re&%ce the +ear o+
misc%es/ What2s cr%cial is the
presence o+ +ail%re6tolerant
lea&ers66e.ec%tives -ho* thro%gh
their -or&s an& actions* help
employees overcome their
an.ieties abo%t ma,ing mista,es
an&* in the process* create a
c%lt%re o+ intelligent ris,6ta,ing
that lea&s to s%staine& innovation/
:ra-ing +rom their research in
b%siness* politics* sports* an&
science* the a%thors i&enti+y
common practices among +ail%re6
tolerant lea&ers/ 7hese lea&ers
brea, &o-n the social an&
b%rea%cratic barriers that
separate them +rom their
+ollo-ers/ 7hey engage at a
personal level -ith the people
they lea&/ 7hey ta,e a
nonj%&gmental* analytical post%re
as they interact -ith sta++/ 7hey
openly a&mit their o-n mista,es/
An& they try to root o%t the
&estr%ctive competitiveness b%ilt
into most organi$ations/ Above all
else* +ail%re6tolerant lea&ers p%sh
people to see beyon& tra&itional
&e+initions o+ s%ccess an& +ail%re/
7hey ,no- that as long as a
person vie-s +ail%re as the
opposite o+ s%ccess* rather than
its complement* he or she -ill
never be able to ta,e the ris,s
necessary +or innovation/
7he
Chattanooga (ce
Cream :ivision
HB5=
# #6@#C6"
""p
Anite& 5tates4 +oo&
pro&%cts4 B"> million
reven%es4 )> employees4
"##F
5enior +%nctional o++icers
(mar,eting* man%+act%ring*
research L &evelopment* control*
an& h%man reso%rces) clash over
alternative i&eas +or t%rning
aro%n& a b%siness in &ecline/ 7he
general manager is +ace& not only
-ith choosing bet-een competing
i&eas* b%t also managing con+lict
an& &etermining -hether his
consens%s6oriente& style is
appropriate to the nee&s o+ the
sit%ation/ 7eaching =%rpose; 7o
intro&%ce st%&ents to iss%es an&
&ilemmas o+ lea&ership o+ teams*
especially cross6+%nctional teams
operating %n&er press%re +or
res%lts/
#(a)ter 2- T(e Nature o, Leaders(i)
Meg Whitman at
eBay (nc
HB5=
# #6@"6?@
!?p
7eaching Hotes
# #6@6@)
5an <ose* CA4 (nternet4
"###
Meg Whitman ta,es over as C9O
o+ eBay +rom the +o%n&er/ 5he
m%st +ig%re o%t ho- to lea& the
company thro%gh a stage o+
phenomenal gro-th -itho%t
compromising eBay2s %ni0%e
e.ternal c%stomer c%lt%re an&
internal c%lt%re66its ,ey s%ccess
+actors/ A re-ritten version o+ an
earlier case/
Cr%cibles o+
'ea&ership
HBR
Article
# ?#B
)p
What ma,es a great lea&er? Why
&o some people appear to ,no-
instinctively ho- to inspire
employees66bringing o%t their
con+i&ence* loyalty* an&
&e&ication66-hereas others
+lo%n&er again an& again? Ho
simple +orm%la can e.plain ho-
great lea&ers come to be* b%t
Bennis an& 7homas believe it has
something to &o -ith the -ays
people han&le a&versity/ 7he
a%thors2 recent research s%ggests
that one o+ the most reliable
in&icators an& pre&ictors o+ tr%e
lea&ership is the ability to learn
+rom even the most negative
e.periences/ (n intervie-ing more
than @ lea&ers in b%siness an&
the p%blic sector over the past !
years* the a%thors &iscovere& that
all o+ them66yo%ng an& ol& ali,e66
ha& en&%re& intense* o+ten
tra%matic* e.periences that
trans+orme& them an& became
the so%rce o+ their &istinctive
lea&ership abilities/ Bennis an&
7homas call these shaping
e.periences 1cr%cibles*1 a+ter the
vessels me&ieval alchemists %se&
in their attempts to t%rn base
metals into gol&/ Eor the
intervie-ees* their cr%cibles -ere
the points at -hich they -ere
+orce& to 0%estion -ho they -ere
an& -hat -as important to them/
7hese e.periences ma&e them
stronger an& more con+i&ent an&
change& their sense o+ p%rpose in
some +%n&amental -ay/
Wol+gang Keller
at Konigsbra%6
Hellas A/9
HB5=
# #6@#C6@>
"Cp
9%rope4 bre-ery4 mi&6si$e4
B" million sales
Raises iss%es concerning
per+ormance eval%ation*
per+ormance appraisal* managing
ine++ective per+ormance* an&
con+licts in management style/ A
re-ritten version o+ an earlier
case/
7aran 5-an at
Hic,elo&eon
'atin America
(A)
HB5=
# #6@6!F
?>p
7eaching Hotes
# #6@6!)
>p
Miami* E'4 cable television4
"##C
9ighteen months a+ter la%nching
Hic,elo&eon 'atin America*
general manager 7aran 5-an
m%st leave the company2s Miami
hea&0%arters +or her He- 3or,
home beca%se o+ complications
-ith her pregnancy/ Anable to
travel +or at least the ne.t si.
months* 5-an m%st &eci&e ho-
she -ill contin%e to r%n the
channel +rom He- 3or,/ 5ho%l&
she p%t an interim acting hea& in
place* an& i+ so* -ho among her
team sho%l& it be? What
a&j%stments -ill she nee& to
ma,e in her lea&ership style an&
-or,ing relationships -ith her
team? 7he case &escribes the
channel2s la%nch an& +irst "C
months on the air* +oc%sing on
ho- 5-an p%ts together her team
an& cra+ts the company2s c%lt%re/
Why 5ho%l&
Anyone be 'e&
by 3o%?
HBR
Article #
R>F
Cp
We all ,no- that lea&ers nee&
vision an& energy* b%t a+ter an
e.ha%stive revie- o+ the most
in+l%ential theories on lea&ership66
as -ell as -or,shops -ith
tho%san&s o+ lea&ers an& aspiring
lea&ers66the a%thors learne& that
great lea&ers also share +o%r
%ne.pecte& 0%alities; ") 7hey
selectively reveal their
-ea,nesses4 ?) 7hey rely heavily
on int%ition to ga%ge the
appropriate timing an& co%rse o+
their actions4 !) 7hey manage
employees -ith 1to%gh empathy14
an& @) 7hey capitali$e on their
&i++erences/ All +o%r 0%alities are
necessary +or inspirational
lea&ership* b%t they cannot be
%se& mechanically4 they m%st be
mi.e& an& matche& to meet the
&eman&s o+ partic%lar sit%ations/
Most important* ho-ever* is that
the 0%alities enco%rage
a%thenticity among lea&ers/ 7o be
a tr%e lea&er* the a%thors a&vise*
1Be yo%rsel+66more66-ith s,ill/1
What Ma,es a
'ea&er?
HBR
Classic Article
#
R@"H
"p
When as,e& to &e+ine the i&eal
lea&er* many -o%l& emphasi$e
traits s%ch as intelligence*
to%ghness* &etermination* an&
vision66the 0%alities tra&itionally
associate& -ith lea&ership/ O+ten
le+t o++ the list are so+ter* more
personal 0%alities66b%t they are
also essential/ Altho%gh a certain
&egree o+ analytical an& technical
s,ill is a minim%m re0%irement +or
s%ccess* st%&ies in&icate that
emotional intelligence may be the
,ey attrib%te that &isting%ishes
o%tstan&ing per+ormers +rom
those -ho are merely a&e0%ate/
=sychologist an& a%thor :aniel
8oleman +irst bro%ght the term
1emotional intelligence1 to a -i&e
a%&ience -ith his "##> boo, o+
the same name* an& 8oleman
+irst applie& the concept to
b%siness -ith this "##C classic
HBR article/ (n his research at
nearly ? large* global
companies* 8oleman +o%n& that
tr%ly e++ective lea&ers are
&isting%ishe& by a high &egree o+
emotional intelligence/ Witho%t it*
a person can have +irst6class
training* an incisive min&* an& an
en&less s%pply o+ goo& i&eas* b%t
he or she still -on2t be a great
lea&er/ 7he chie+ components o+
emotional intelligence66sel+6
a-areness* sel+6reg%lation*
motivation* empathy* an& social
s,ill66can so%n& %nb%sinessli,e*
b%t 8oleman* cochair o+ the
Consorti%m +or Research on
9motional (ntelligence in
Organi$ations* base& at R%tgers
Aniversity* +o%n& &irect ties
bet-een emotional intelligence
an& meas%rable b%siness res%lts/
#(a)ter 3- Indi.idual Di,,erences
Management o+
:i++erences
HBR
Article
# FF"?
#p
Managers may most e++ectively
approach the comple. problems o+
in&ivi&%al &i++erences by +irst
ass%ming that the &i++erences are
neither goo& nor ba&* an& that no
one right sol%tion e.ists/
:iagnostic 0%estions the manager
m%st as, concern; the nat%re o+
the &i++erence4 the %n&erlying
+actors4 an& the stage to -hich
the interpersonal &i++erence has
evolve&/ Available co%rses o+
action incl%&e; avoi&ance*
repression* con+lict* an& problem
solving/ A systematic approach to
the problem* -hich -ill res%lt in a
sol%tion that -ill preserve
corporate harmony an& in&ivi&%al
initiative* is the goal/
3vette Hyater T
A&ams an&
7erry 'arsen at
Core5tate
Einancial Corp
HB5=
# #6@"6?!
">p
=hila&elphia* =A4 ban,ing4
?* employees4 "##!6
"##C
3vette Hyater6A&ams* senior M= o+
Core5tates Ban,* an& C9O 7erry
'arsen re+lect on their +ive6year
mentor6protege relationship/ 7hey
&escribe ho- b%il&ing a
relationship across both race an&
gen&er -as challenging an&
%ltimately highly re-ar&ing/ 7heir
relationship &evelops in the
conte.t o+ a major c%lt%re change
that Hyater6A&ams an& 'arsen
-ere lea&ing the organi$ation
thro%gh/ 7his case &isc%sses the
impact their relationship ha& on
the organi$ation an& the change
process/
Bob Ei+er HB5=
# #6@#>6"!
""p
7eaching Hote
# #6@#C6F!
Anite& 5tates4 cons%lting 9.plores the li+e an& concerns o+
Bob Ei+er* HB5 class o+ "#)# an&
C9O o+ Kaiser Associates/ 9.plores
the many in+l%ences on Bob2s
&evelopment an& his s%bse0%ent
career choices/ (t is -ritten as a
biography -ith e.tensive 0%otes
+rom intervie-s -ith Bob/ He
&escribes the role o+ his
%pbringing an& <e-ish ethnicity in
the +ormation o+ his early sel+6
concept/ Highlights the career6
relate& choices he ma,es*
incl%&ing college at Harvar&*
atten&ing b%siness school* an&
entering cons%lting/ A+ter years o+
s%ccess an& &riven -or,aholic
behavior* Bob e.periences
&isill%sionment an& personal
trage&y/ Rea&ers are able to
e.amine the process o+ sel+6
re&irection that Bob engages in to
arrive at their o-n concl%sion
abo%t ho- s%ccess+%l an&
en&%ring it is li,ely to be/
7eaching =%rpose; Can be %se& as
part o+ a career mo&%le in co%rses
s%ch as (ntro&%ctory O/B/* Career
:evelopment* 9ntreprene%rship*
an& 'ea&ership/ (t is -ell6s%ite& to
teach concepts relate& to a&%lt
&evelopment* career6choice
ma,ing* an& entreprene%rial
behavior/
Avon =ro&%cts
(A) an& (B)
HB5=
# #6!"6>#
??p
HB5=
##T!"6F
"@p
He- 3or,* H34 bea%ty
pro&%cts4 B> billion
reven%es4 !!*#
employees4 "##?6"##C
7he general manager o+ Avon
Me.ico* Eernan&o 'e$ama* m%st
&eci&e -hether to promote a
-oman to the position o+ vice
presi&ent o+ sales/ (+ appointe&*
the can&i&ate -o%l& be the +irst
+emale in all o+ 'atin America to
hol& an e.ec%tive position an&
one o+ the +irst -omen in Me.ico
to attain this level o+
responsibility/ 'e$ama2s all6male
e.ec%tive team has &o%bts abo%t
the can&i&ate2s rea&iness b%t
'e$ama is also cogni$ant o+ Avon2s
global vision -hich calls +or the
a&vancement o+ -omen at all
levels o+ the organi$ation/ 9arlier
in the year* the Avon Me.ico
organi$ation ha& complete& an
e.ercise calle& 1appreciative
in0%iry1 aime& at enhancing
gen&er relations in the -or,+orce/
7eaching =%rpose; 7o e.amine the
c%lt%ral aspects o+ managing in
the Me.ican environment an& to
ill%strate the %se o+ 1appreciative
in0%iry1 as part o+ a c%lt%ral
change process/
<%lia 5tasch*
B%siness
9nterprise 7r%st
(A)
HB5=
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# #6##!6"!
Case
7eaching Hote
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Chicago* ('4 constr%ction4
"#CC6"##!
A s%ccess+%l -oman e.ec%tive
attempts to integrate -omen into
the constr%ction tra&e in Chicago/
<%lia 5tasch rose +rom o++ice
assistant to presi&ent an& chie+
operating o++icer o+ a major
Chicago real estate +irm* 5tein L
Co/ 7his case &escribes her
campaign to create e.pan&e&
opport%nities +or -omen an&
minority6o-ne& b%sinesses as
s%ppliers to constr%ction projects*
an& +or -omen an& minority
-or,ers on constr%ction sites/
:isc%sses entrenche&
&iscrimination in a partic%lar
in&%stry* an& the creative change
strategies implemente& by one
e.ec%tive/ 7eaching =%rpose; May
be %se& in H%man Reso%rces*
Organi$ational Behavior* 9thics*
an& :iversity co%rses to help
st%&ents e.plore; ") the &esign o+
a++irmative action an& &iversity
programs to a&&ress entrenche&
&iscrimination4 ?) the role o+
b%siness in enco%raging &iversity4
!) ho- one in&ivi&%al can create
social change4 an& @) strategies
+or increasing the acceptance o+
&iversity o+ the -or,place/
#(a)ter 4!- T(e Nature o, Learnin'
B%il&ing a
'earning
Organi$ation
HBR Reprint
# #!@?
"@p
Contin%o%s improvement
programs are proli+erating as
corporations see, to better
themselves an& gain an e&ge/
An+ort%nately* ho-ever* +aile&
programs +ar o%tn%mber
s%ccesses* an& improvement rates
remain lo-/ 7hat2s beca%se most
companies have +aile& to grasp a
basic tr%th/ Be+ore people an&
companies can improve* they
m%st +irst learn/ An& to &o this*
they nee& to loo, beyon& rhetoric
an& high philosophy an& +oc%s on
the +%n&amentals/ 7hree critical
iss%es m%st be a&&resse& be+ore
a company can tr%ly become a
learning organi$ation; meaning*
management* an& meas%rement/
Eraming +or
'earning;
'essons in
5%ccess+%l
7echnology
(mplementation
CMR Article
# CMR ?@)
?!p
7he &ecision to a&opt a ne-
technology in the health care
setting is merely the +irst step in
an implementation jo%rney/
Whereas some ne- technologies
are rea&ily embrace& by those
-ho m%st %se them* most are met
-ith some resistance/ (n some
cases* members o+ &iverse
gro%ps66incl%&ing a&ministrators*
clinicians* an& technicians66m%st
-or, together +or a ne-
technology to ta,e hol&
e++ectively* becoming incorporate&
into ro%tine practice in an
organi$ation/ 7his article reports
on a 0%alitative st%&y o+ hospitals
a&opting a ne- technology +or
minimally invasive car&iac s%rgery
that %ncovere& s%bstantial
&i++erences in both approach an&
implementation s%ccess/ Eo%r
case st%&ies are presente& to
ill%strate &istinct* tacit +rames
hel& by the lea&ers o+ each
implementation project an& ho-
these in+l%ence& the team
learning process an&* in t%rn*
implementation s%ccess/
5pee&ing %p
7eam 'earning
HBR Article
# R"#<
)p
Car&iac s%rgery is one o+
me&icine2s mo&ern miracles/ (n an
operating room no larger than
many ho%sehol& ,itchens* a
patient is ren&ere& +%nctionally
&ea& -hile a s%rgical team repairs
or replaces &amage& arteries or
valves/ 9ach operation re0%ires
incre&ible team-or,66a single
error can have &isastro%s
conse0%ences/ (n other -or&s*
s%rgical teams are not all that
&i++erent +rom the cross6+%nctional
teams that have become cr%cial to
b%siness s%ccess/ 7he challenge o+
team management these &ays is
not simply to e.ec%te e.isting
processes e++iciently/ (t2s to
implement ne- processes as
0%ic,ly as possible/ B%t a&opting
ne- technologies or ne- b%siness
processes is highly &isr%ptive*
regar&less o+ the in&%stry/ 7he
a%thors st%&ie& ho- s%rgical
teams at "F major me&ical
centers implemente& a &i++ic%lt
ne- proce&%re +or per+orming
car&iac s%rgery/ 7he setting -as
i&eal +or rigoro%sly +oc%sing on
ho- teams learn an& -hy some
learn +aster than others/ 7he
a%thors +o%n& that the most
s%ccess+%l teams ha& lea&ers -ho
actively manage& the gro%ps2
learning e++orts/ 7eams that most
s%ccess+%lly implemente& the ne-
technology share& three essential
characteristics/ 7hey -ere
&esigne& +or learning4 their
lea&ers +rame& the challenge so
that team members -ere highly
motivate& to learn4 an& an
environment o+ psychological
sa+ety +ostere& comm%nication
an& innovation/ 7he +in&ing that
teams learn more 0%ic,ly i+ they
are e.plicitly manage& +or
learning poses a challenge in
many areas o+ b%siness/ 7eam
lea&ers in b%siness ten& to be
chosen more +or their technical
e.pertise than +or their
management s,ills/ 7eam lea&ers
nee& to become a&ept at creating
learning environments* an& senior
managers nee& to loo, beyon&
technical competence an& i&enti+y
lea&ers -ho can motivate an&
manage teams o+ &isparate
specialists/
7he An.iety o+
'earning; An
(ntervie- -ith
9&gar H 5chein
HBR Article
# R?!H
)p
:espite all o+ the time* money*
an& energy that e.ec%tives po%r
into corporate change programs*
the star, reality is that +e-
companies ever s%ccee& in
gen%inely reinventing themselves/
7hat2s beca%se the people at
those companies rarely master
the art o+ trans+ormational
learning66that is* eagerly
challenging &eeply hel&
ass%mptions abo%t a company2s
processes an&* in response*
altering their tho%ghts an&
actions/ (nstea&* most people j%st
en& %p &oing the same ol& things
in s%per+icially t-ea,e& -ays/
Why is trans+ormational learning
so har& to achieve? HBR senior
e&itor :iane Co%t% e.plores this
0%estion -ith psychologist an&
M(7 pro+essor 9&gar 5chein* a
-orl&6reno-ne& e.pert on
organi$ational &evelopment/ (n
sharp contrast to the optimistic
rhetoric that permeates the
&ebate on corporate learning an&
change* 5chein is ca%tio%s abo%t
-hat companies can an& cannot
accomplish/ Corporate c%lt%re can
change* he says* b%t this ,in& o+
learning ta,es time* an& it isn2t
+%n/ (n this article* he &escribes
t-o basic types o+ an.iety66
learning an.iety an& s%rvival
an.iety66that &rive ra&ical
relearning in organi$ations/
5chein2s theories spring +rom his
early research on ho- American
prisoners o+ -ar in Korea -ere
brain-ashe& by their captors/
Heavy sociali$ation is bac, in style
in A/5/ corporations to&ay* 5chein
says* even i+ no one is calling it
that/
Capitalising on
Capabilities
HBR Article
# R@F<
Cp
By ma,ing the most o+
organi$ational capabilities66
employees2 collective s,ills an&
+iel&s o+ e.pertise66yo% can
&ramatically improve yo%r
company2s mar,et val%e/ Altho%gh
there is no magic list o+
pro+iciencies that every
organi$ation nee&s to s%ccee&*
the a%thors i&enti+y "" intangible
assets that -ell6manage&
companies ten& to have; talent*
spee&* share& min&6set an&
coherent bran& i&entity*
acco%ntability* collaboration*
learning* lea&ership* c%stomer
connectivity* strategic %nity*
innovation* an& e++iciency/ 5%ch
companies typically e.cel in only
three o+ these capabilities -hile
maintaining in&%stry parity in the
other areas/ Organi$ations that
+all belo- the norm in any o+ the
"" are li,ely can&i&ates +or
&ys+%nction an& competitive
&isa&vantage/ 7o &etermine ho-
yo%r company +ares in these
categories (or others* i+ the
generic list &oesn2t s%it yo%r
nee&s)* the a%thors e.plain ho-
to con&%ct a 1capabilities a%&it*1
&escribing in partic%lar the
e.periences an& +in&ings o+ t-o
companies that recently
per+orme& s%ch a%&its/ (n a&&ition
to highlighting -hich intangible
assets are most important given
the organi$ation2s history an&
strategy* this e.ercise ga%ges ho-
-ell yo%r company &elivers on its
capabilities an& g%i&es yo% in
&eveloping an action plan +or
improvement/ A capabilities a%&it
can -or, +or an entire
organi$ation* a b%siness %nit* or a
region66in&ee&* +or any part o+ a
company that has a strategy to
generate +inancial or c%stomer6
relate& res%lts/ (t enables
e.ec%tives to assess overall
company strengths an&
-ea,nesses* senior lea&ers to
&e+ine strategy* mi&6level
managers to e.ec%te strategy*
an& +rontline lea&ers to achieve
tactical res%lts/
#(a)ter 44- T(e Process o, Perce)tion
<ensen 5hoes;
'yn&on
7-itchellOs 5tory
HB5=
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Cp
7eaching Hote
# #6!#F6")
Anite& 5tates4 shoes4 BF>
million reven%es4 @*>
employees4 "##@
<ane Kravit$ (Ca%casian +emale)*
strategic pro&%ct manager* an&
'yn&on 7-itchell (A+rican
American male)* a member o+ her
sta++ at <ensen 5hoes* a
s%ccess+%l pro&%cer an& mar,eter
o+ cas%al* athletic* an& chil&ren2s
+oot-ear* are assigne& to ne-
positions an& to each other at the
start o+ the story/ =resents their
very &i++erent points o+ vie- on
their +irst co%ple o+ months
-or,ing together/ Can be ta%ght
in a variety o+ -ays; -ith all
st%&ents receiving both cases4
hal+ receiving one an& hal+
receiving the other4 or a thir& o+
the class receiving both* one thir&
receiving one* an& one thir&
receiving the other (as is
appropriate)/ 5ho%l& be %se& -ith
<ensen 5hoes; <ane Kravit$2s
5tory/
<ensen 5hoes;
<ane Kravit$Os
5tory
HB5=
# #6!#>6"?
)p
7eaching Hote
#6!#F6")
Anite& 5tates4 shoes4 BF>
million reven%es4 @*>
employees4 "##@
<ane Kravit$ (Ca%casian +emale)*
strategic pro&%ct manager* an&
'yn&on 7-itchell (A+rican
American male)* a member o+ her
sta++ at <ensen 5hoes* a
s%ccess+%l pro&%cer an& mar,eter
o+ cas%al* athletic* an& chil&ren2s
+oot-ear* are assigne& to ne-
positions an& to each other at the
start o+ the story/ =resents their
very &i++erent points o+ vie- on
their +irst co%ple o+ months
-or,ing together/ Can be ta%ght
in a variety o+ -ays; -ith all
st%&ents receiving both cases4
hal+ receiving one an& hal+
receiving the other4 or a thir& o+
the class receiving both* one thir&
receiving one* an& one thir&
receiving the other (as is
appropriate)/ 5ho%l& be %se& -ith
<enson 5hoes; 'yn&on 7-itchell2s
5tory/
(ntel in China (veyNAWO
# ##C)
""p
7eaching Hote
# C##C)
China4 semicon&%ctors4
small4 "##C
(ntel =RC -as a &ivision o+ (ntel
Corp/* a A/5/ B? billion
semicon&%ctor man%+act%rer/ A
ne-ly appointe& &ivision hea&
ma,es a &ecision that an
employee respon&s to
emotionally* -ith a &eep
resentment* creating the potential
+or con+lict -ithin the &epartment/
7he inci&ent +orces the manager
to e.amine -hether there are
&eeper organi$ational or
comm%nication problems he
nee&s to consi&er/ Cross6c%lt%ral
iss%es come into play given that
the manager* altho%gh originally
+rom China* -as e&%cate& an&
gathere& e.tensive e.perience in
the -est an& -as th%s consi&ere&
an e.patriate by his employees/
7he case e.amines the e++ect o+
organi$ational c%lt%re on an
employee2s behavior/
#(a)ter 4- 5or6 Moti.ation and Re7ards
Mary Kay
Cosmetics (nc;
5ales Eorce
(ncentives
HB5=
# #6"#6"!
"Fp
7eaching Hotes
# #6"#"6"#C
"p
Case
# #6"#6"??
?p
:allas* 7S4 cosmetics4 mi&6
si$e4 B@ million sales4
"#C#
:escribes the incentive system by
-hich Mary Kay Cosmetics
motivates the sales +orce o+
?* in&epen&ent agents -ho
comprise the +irm2s only
&istrib%tion channel/ (ll%strates
the po-er+%l e++ect on sales6+orce
behavior that res%lts -hen
creative types o+ employee
recognition are combine& -ith
+inancial incentives/ Eoc%ses on
the challenges that managers +ace
-hen they try to re&%ce program
costs by mo&i+ying the M(=
a%tomobile program that a-ar&s
the %se o+ pin, Ca&illacs an& other
cars to s%ccess+%l sales agents/ A
&etaile& &escription o+ the
parameters an& +orm%las that
&rive the recognition an& re-ar&
programs is provi&e&/
Ho- to Motivate
3o%r =roblem
=eople
HBR Reprint
# !":
Cp
Managers -ho motivate -ith
incentives an& the po-er o+ their
vision an& passion s%ccee& only in
energi$ing employees -ho -ant to
be motivate&/ 5o ho- &o yo%
motivate intractable employees66
the ones -ho never &o -hat yo%
-ant an& also ta,e %p all yo%r
time? Accor&ing to Higel
Hicholson* yo% can2t; (n&ivi&%als
m%st motivate themselves/
(nstea& o+ p%shing sol%tions on
problem employees* the manager
sho%l& p%ll sol%tions o%t o+ them
by creating circ%mstances in
-hich the employees can channel
their motivation to-ar& achievable
goals/ 7hat means a&&ressing any
obstacles66possibly even the
manager2s o-n &emotivating
style66that might be hin&ering the
employees/ Asing &etaile&
e.amples* Hicholson -al,s the
rea&er thro%gh his metho&*
pointing o%t potential pit+alls
along the -ay/ Eirst* the manager
creates a rich pict%re o+ the
problem person/ 5econ&* the
manager e.ercises +le.ibility an&
re+rames goals so that the
employee can meet them/ 7hir&*
in a care+%lly stage&* +ace6to6+ace
conversation* the manager meets
-ith the problem employee on
ne%tral gro%n&/
One More 7ime;
Ho- :o yo%
Motivate
9mployees?
HBR Reprint
#R!"E
#p
(t2s a manager2s perennial
0%estion; 1Ho- &o ( get an
employee to &o -hat ( -ant?1 7he
psychology o+ motivation is very
comple.* b%t the s%rest -ay o+
getting someone to &o something
is to &eliver a ,ic, in the pants66
p%t bl%ntly* the K(7A/ Companies
%s%ally resort to positive K(7As*
ranging +rom +ringe bene+its to
employee co%nseling/ B%t
altho%gh a K(7A might pro&%ce
some change in behavior* it
&oesn2t motivate/ Ere&eric,
Her$berg* -hose -or, in+l%ence&
a generation o+ scholars an&
managers* li,ens motivation to an
internal generator/ An employee
-ith an internal generator* he
arg%es* nee&s no K(7A/
Achievement* recognition +or
achievement* the -or, itsel+*
responsibility* an& gro-th or
a&vancement motivate people/
7he a%thor cites research sho-ing
that those intrinsic +actors are
&istinct +rom e.trinsic* or K(7A*
elements that lea& to job
&issatis+action/ <obs can be
change& an& enriche&/ Managers
sho%l& +oc%s on positions -here
people2s attit%&es are poor/ 7he
investment nee&e& in in&%strial
engineering is cost e++ective* an&
motivation -ill ma,e a &i++erence
in per+ormance/
HCM Beverage
Co
(vey
5choolNAWO
# #CC!
")p
Mietnam4 +oo& an& ,in&re&
pro&%cts4 mi&6si$e4 "##)
Mar, <ohnson* general manager o+
HCM Beverage Co/* m%st &eci&e
-hat to &o abo%t the &eclining
per+ormance o+ Mietnam6base&
HCM Beverage/ 9mployees seem
%nmotivate& an& lac,a&aisical
abo%t their -or,/ 7hese same
-or,ers blame the -eather +or
the poor res%lts/ Eig%ring o%t the
problem an& sol%tion is <ohnson2s
major challenge/
#(a)ter 4/- T(e Nature o, 5or6 Grou)s and Tea%s
7he Overhea&
Re&%ction 7as,
Eorce
HB5=
# #6@6?F
)p
7eaching Hote
# #6@6?)
")p
Anite& 5tates4 ho%sehol&
appliances4 mi&6si$e4 "#))6
"###
A mi&&le manager is abo%t to
meet -ith his boss to &isc%ss her
re0%est that he hea& %p a tas,
+orce to &etermine ho- overhea&
can be re&%ce& by ?G/ He m%st
&eci&e -hat to a&&ress in that
meeting an& ho- the tas, +orce
sho%l& be la%nche& an& le&/ 7he
+oc%s is on team lea&ership at
+o%r stages in a team2s li+e cycle;
") preparation* ?) initial meeting*
!) mi&6co%rse cons%ltation* an&
@) post6per+ormance &ebrie+ing/ A
re-ritten version o+ an earlier
case/
Brin,erho++
(nternational
(A)
HB5=
# #6@#@6""
">p
Case
# #6@#@6"""
"p
7eaching Hote
# #6@#F6@"
Fp
Alberta* Cana&a4 oil &rilling4
B?) million reven%es4 "##!
=resents a st%&y o+ t-o oil rigs
an& their team relationships
-ithin a conte.t o+ &issension in
lo-er management ran,s an& a
presi&ent -ho is trying to e.pan&
the b%siness in a changing
economy/ 7eaching =%rpose; 7o
sho- the importance o+ team-or,
at the bottom o+ a high6s,ill*
&angero%s b%siness/
7he
Chattanooga (ce
Cream :ivision
HB5=
# #6@#C6"
""p
Anite& 5tates4 +oo&
pro&%cts4 B"> million
reven%es4 )> employees4
"##F
5enior +%nctional o++icers
(mar,eting* man%+act%ring*
research L &evelopment* control*
an& h%man reso%rces) clash over
alternative i&eas +or t%rning
aro%n& a b%siness in &ecline/ 7he
general manager is +ace& not only
-ith choosing bet-een competing
i&eas* b%t also managing con+lict
an& &etermining -hether his
consens%s6oriente& style is
appropriate to the nee&s o+ the
sit%ation/ 7eaching =%rpose; 7o
intro&%ce st%&ents to iss%es an&
&ilemmas o+ lea&ership o+ teams*
especially cross6+%nctional teams
operating %n&er press%re +or
res%lts/
7echnology +or
7eams
Hote
# #6"#F6C
"p
7he importance o+ gro%ps in
organi$ations has long been
recogni$e& b%t* %ntil recently*
gro%ps -ere al-ays 1tac,e& onto1
organi$ations that -ere &esigne&
aro%n& in&ivi&%als/ (t -as not j%st
the logic o+ classical organi$ational
theory that perpet%ate& this +oc%s
on the in&ivi&%al4 the entire
entreprene%rial tra&ition o+ A/5/
society an& c%lt%re s%pporte& it/
Recently* companies have beg%n
to brea, &o-n these tra&itional
organi$ational an& c%lt%ral
barriers an& to recogni$e teams
as a +ormal %nit o+ the
organi$ational str%ct%re/ While
a%tonomo%s (or semi6
a%tonomo%s) -or, teams have
operate& -ithin man%+act%ring
environments +or several &eca&es*
more recently companies li,e
8eneral 9lectric* (BM* an& Erito6
'ay have attempte& to create
1empo-ere&1 -or, teams as the
basic %nit o+ organi$ational -or,
thro%gho%t their organi$ations/ As
companies attempt to +ormally
recogni$e the team as a str%ct%ral
%nit o+ the organi$ation* they are
also +orce& to reeval%ate
organi$ational processes an&
str%ct%res that &etract +rom
e++ective gro%p +%nctioning/ A
gro-ing n%mber o+ companies are
+in&ing that technology can be an
important tool +or +acilitating team
processes/
#(a)ter 40- 5or6in' in Grou)s and Tea%s
B%siness 7eams
at R%bbermai&
(nc
HB5=
# #6C#)6"F>
?Fp
Wooster* OH4 cons%mer
pro&%ctsNplastics
man%+act%rer4 B?/! billion
reven%es4 "@*>
employees4 "##F
R%bbermai&* a cons%mer pro&%cts
company -i&ely praise& +or its
innovation* has instit%te& a
company6-i&e e.periment to
stim%late innovation even +%rther/
7he e.periment consists o+
creating small cross6+%nctional
b%siness teams -ithin each
&ivision* -ith each team being
responsible +or the creation*
management* an& pro+itability o+
a partic%lar pro&%ct line/ 7he
sta++ing* reporting str%ct%re* an&
management o+ the b%siness
teams vary across &ivisions* an&
clear &i++erences emerge in the
per+ormance o+ +o%r highlighte&
teams/ 7eaching =%rpose; 7o
e.plore the possibility o+ %sing
cross6+%nctional teams -ithin
establishe& +irms to sim%late
entreprene%rial vent%res an&
accelerate innovation/ 5peci+ic
topics incl%&e; options +or
sta++ing* str%ct%ring* an&
managing cross6+%nctional
b%siness teams4 the &i++ic%lty o+
implementing cross6+%nctional
teams in a company -ith a strong
+%nctional str%ct%re4 the &i++ic%lty
o+ balancing acco%ntability an&
empo-erment in
1entreprene%rial1 teams -ithin
establishe& +irms4 an& the impact
o+ &i++erent management
approaches on the +%nctioning o+
b%siness teams/
:atavision (A) HB5=
# #6@#>6@F
Case
B%rlington* MA4 comp%ters4
B! million reven%es4 >
employees4 "##!
:epicts a 1team6b%il&ing1
intervention by an organi$ational
cons%ltant at a small comp%ter
">p
# #6@#>6@)
!p
Case
# #6@#>6@C
?p
7eaching Hote
# #6@#C6!
"?p
company/ 7eaching =%rpose;
5ho%l& promote &isc%ssion
s%rro%n&ing s%ch techni0%es/
5pee&ing Ap
7eam 'earning
HBR
Reprint #
R"#<
)p
Car&iac s%rgery is one o+
me&icine2s mo&ern miracles/ (n an
operating room no larger than
many ho%sehol& ,itchens* a
patient is ren&ere& +%nctionally
&ea& -hile a s%rgical team repairs
or replaces &amage& arteries or
valves/ 9ach operation re0%ires
incre&ible team-or,66a single
error can have &isastro%s
conse0%ences/ (n other -or&s*
s%rgical teams are not all that
&i++erent +rom the cross6+%nctional
teams that have become cr%cial to
b%siness s%ccess/ 7he challenge o+
team management these &ays is
not simply to e.ec%te e.isting
processes e++iciently/ (t2s to
implement ne- processes as
0%ic,ly as possible/ B%t a&opting
ne- technologies or ne- b%siness
processes is highly &isr%ptive*
regar&less o+ the in&%stry/ 7he
a%thors st%&ie& ho- s%rgical
teams at "F major me&ical
centers implemente& a &i++ic%lt
ne- proce&%re +or per+orming
car&iac s%rgery/ 7he setting -as
i&eal +or rigoro%sly +oc%sing on
ho- teams learn an& -hy some
learn +aster than others/ 7he
a%thors +o%n& that the most
s%ccess+%l teams ha& lea&ers -ho
actively manage& the gro%ps2
learning e++orts/ 7eams that most
s%ccess+%lly implemente& the ne-
technology share& three essential
characteristics/ 7hey -ere
&esigne& +or learning4 their
lea&ers +rame& the challenge so
that team members -ere highly
motivate& to learn4 an& an
environment o+ psychological
sa+ety +ostere& comm%nication
an& innovation/ 7he +in&ing that
teams learn more 0%ic,ly i+ they
are e.plicitly manage& +or
learning poses a challenge in
many areas o+ b%siness/ 7eam
lea&ers in b%siness ten& to be
chosen more +or their technical
e.pertise than +or their
management s,ills/ 7eam lea&ers
nee& to become a&ept at creating
learning environments* an& senior
managers nee& to loo, beyon&
technical competence an& i&enti+y
lea&ers -ho can motivate an&
manage teams o+ &isparate
specialists/
#(a)ter 4"- Or'anisation Structure and Desi'n
=olycom (nc; HB5= Anite& 5tates4 =olycom is a rapi&ly gro-ing
Mis%alising
C%lt%re
# #6F"6)!
"Fp
telecomm%nications4 B>
million reven%es4 >
employees4 ?
ma,er o+ vi&eo con+erencing an&
telecon+erencing e0%ipment/
Management is attempting to %se
1nat%ral -or, gro%ps1 as an
organi$ing mechanism* an& to
b%il& into the c%lt%re implicit r%les
that -ill ca%se &esire& behaviors
to be sel+6policing/
:o yo% have a
-ell6&esigne&
organisation?
HBR
Reprint #
R?!K
)p
Eor most companies* organi$ation
&esign is neither a science nor an
art4 it2s an o.ymoron/
Organi$ational str%ct%res evolve
in +its an& starts* shape& more by
politics than by policies/ Altho%gh
most e.ec%tives can sense -hen
their organi$ation &esigns are not
-or,ing -ell* +e- ta,e meaning+%l
action* partly beca%se they lac, a
practical +rame-or, to g%i&e
them/ 7he a%thors o+ this article
provi&e j%st s%ch a +rame-or,4
they present nine tests that can
be %se& either to eval%ate an
e.isting organi$ation &esign or
create a ne- one/ Eo%r 1+it1 tests
o++er an initial screen; 7he mar,et
a&vantage test as,s -hether a
&esign &irects s%++icient
management attention to the
company2s so%rces o+ competitive
a&vantage4 the parenting
a&vantage test &etermines
-hether the &esign gives eno%gh
attention to the corporate6level
activities that provi&e real val%e
to the company4 the people test
sho-s -hether the &esign re+lects
the employees2 strengths4 an& the
+easibility test loo,s at constraints
that may impe&e implementation/
Eive 1goo& &esign1 tests can help
a company re+ine its prospective
&esign/ 7he specialist c%lt%res test
ens%res that there2s s%++icient
ins%lation +or %nits that nee& to be
&i++erent +rom the prevailing
c%lt%re4 the &i++ic%lt6lin,s test
&etermines -hether a &esign
o++ers sol%tions +or potentially
problematic %nit6to6%nit lin,s4 the
re&%n&ant6hierarchy test as,s
-hether the &esign has too many
parent levels4 the acco%ntability
test loo,s at -hether every %nit
has s%itable controls4 an& the
+le.ibility test ens%res that the
&esign lets the company a&apt to
change/ Once a &esign is altere&*
the tests sho%l& be repeate&/
Organi$ational &ecisions are
inevitably comple.* an& t-ea,ing
one part o+ the &esign may
pro&%ce %nanticipate&
conse0%ences else-here/
Why Hierarchies
7hrive
HBR
Article #
R!!8
Fp
Har&ly anyone has a goo& -or& to
say abo%t hierarchies/ 7hey
ro%tinely trans+orm motivate& an&
loyal employees into &isa++ecte&
:ilberts/ 3et* the intensity -ith
-hich -e str%ggle against
hierarchies only serves to
highlight their &%rability/ (n this
article* organi$ational behavior
e.pert Harol& </ 'eavitt presents
neither a &e+ense o+ h%man
hierarchies nor another attac, on
them/ (nstea&* he o++ers a reality
chec,* a remin&er that hierarchy
remains the basic str%ct%re o+
most* i+ not all* large* ongoing
h%man organi$ations/ 7hat2s
beca%se altho%gh they are o+ten
&epicte& as being o%t o+ &ate*
hierarchies have prove& to be
e.traor&inarily a&aptive/ Over the
past > years* +or e.ample* they
have co6opte& the three major
managerial movements66h%man
relations* analytic management*
an& comm%nities o+ practice/
Hierarchies also persist beca%se
they &eliver real practical an&
psychological val%e* an& they
+%l+ill o%r &eep nee& +or or&er an&
sec%rity/ :espite the goo& they
may &o* ho-ever* hierarchies are
inevitably a%thoritarian/
7rojan
7echnologies
(nc;
Organi$ational
5tr%ct%ring +or
8ro-th an&
C%stomer
5ervice
Eiel& Case
# ##M"#
Cp
Cana&a4 electric* gas* an&
sanitary services4 small4
"##C
A gro%p o+ 7rojan 7echnologies*
(nc/ employees grapple& -ith the
iss%e o+ ho- to str%ct%re the
b%siness to interact e++ectively
-ith its c%stomers an& manage
the company2s &ramatic gro-th/
7he 'on&on* Ontario man%+act%rer
o+ %ltraviolet -ater &isin+ecting
systems believe& that strong
c%stomer service -as ,ey to its
recent an& projecte& gro-th an&
ha& come to the reali$ation that
changes -o%l& have to be ma&e
to contin%e to achieve both
sim%ltaneo%sly/ 7he gro%p hope&
to &evelop a str%ct%re to a&&ress
these iss%es/ 7he e.ec%tive vice
presi&ent -as to lea& the
&evelopment an& implementation
o+ the ne- str%ct%re/ 7he
transition to the ne- str%ct%re
-as to coinci&e -ith the ne- +iscal
year/
#(a)ter 41- Patterns o, Structure and 5or6 Or'anisation
Hovartis
=harma; 7he
B%siness Anit
Mo&el
HB5=
# #6""6!
?"p
5-it$erlan&4
pharmace%ticals4 B?" billion
reven%es4 )*
employees4 ?
(n <%ne ?* Hovartis
reorgani$e& its pharmace%tical
b%siness to +orm global b%siness
%nits in oncology* transplantation*
ophthalmology* an& mat%re
pro&%cts/ 7he remaining pro&%cts
(primary care pro&%cts) -ere
manage& as be+ore -ithin global
+%nctions (RL:)* mar,eting* etc/)
7he ne- organi$ation create& a
matri. str%ct%re an& ne- roles
an& responsibilities +or hea&s o+
b%siness +%nctions* C9Os o+ ne-
b%siness %nits* an& co%ntry
managers operating in over "
co%ntries/ 7eaching =%rpose; 7o
e.plore the reasons +or Hovartis2s
reorgani$ing into the ne- matri.
str%ct%re* the tensions an&
challenges the ne- str%ct%re
creates* an& the c%lt%re an&
acco%ntability nee&e& to ma,e the
ne- str%ct%re -or,/
B%c, L =%lleynOs
7eam
Management
HB5=
# #6@#)6)
#p
Rochester* H34 a&vertising4
small4 B?F million reven%es4
) employees4 "##F
(n "##!* the +irm began to move
+rom a tra&itional hierarchical
str%ct%re to client6+oc%se& teams/
7he case &escribes the process
an& some conse0%ences o+ this
restr%ct%ring/ =er+ormance seems
to be improving* b%t some
employees pre+erre& the str%ct%re
certainty an& client variety o+ the
ol& &ays/ Ho- &oes management
&eal -ith these iss%es? 7eaching
=%rpose; 7eam management has
become very pop%lar* b%t
transitions +rom tra&itional
str%ct%res to teams are not easy/
7he &isc%ssion -ill center on ho-
to &eal -ith these iss%es/
A5A 7O:A3;
=%rs%ing the
Het-or,
5trategy (A)
HB5=
# #6@?6"
"Cp
Mirginia4 ne-spaper4 B)
million reven%es4 !*
employees4 ?
:escribes the evol%tion o+ A5A
7O:A3 Online* the electronic
version o+ the ne-spaper* -ithin
the organi$ational str%ct%re o+ the
ne-spaper/ :escribes the tensions
an& iss%es that &evelop an& the
press%re +rom the Online &ivision
to be sp%n o++/ At the same time*
C9O 7om C%rley sees a greater
strategic nee& +or integration/
=oses the 0%estion o+ -hat &egree
or type o+ strategic integration is
re0%ire&* -hat &egree o+
organi$ational integration this
implies* an& ho- it can be
achieve&/
9li6'illy T "##C
(B); 9merging
8lobal
Organi$ation
HB5=
# #6!##6")@
">p
8lobal4 pharmace%ticals4
Eort%ne >4 B"? billion
reven%es4 "*
employees4 "##C
9.amines major iss%es +ace& by
9li 'illy as it eval%ates the
appropriateness o+ a +oc%se&
matri. organi$ation -ith e.tensive
%se o+ cross6+%nctional teams/
#(a)ter 47- Tec(nolo'* and Or'anisation
Hapster an&
M=!; Re&e+ining
the M%sic
(n&%stry
(veyNAWO
# #"M?
??p
8lobal4 m%sic4 ? 7he m%sic in&%stry has change&
&ramatically as a res%lt o+
technological an& b%siness
innovations that have trans+orme&
ho- m%sic is ac0%ire&* an& ho-
val%e is create& an& &istrib%te&/
Hapster* (nc/ operate& one o+
several Web sites that allo-e&
(nternet %sers +ree access to M=!
m%sic +iles66-hich event%ally le&
to la-s%its aro%n& iss%es o+ the
protection o+ intellect%al capital/
7hese iss%es lea& to the
e.amination o+ the +orces at play
in the trans+ormation o+ the m%sic
in&%stry* the strategic alternatives
+or players in the in&%stry an& the
legal conte.t %n&erpinning the
strategic alternatives* -ith a
partic%lar +oc%s on the protection
o+ intellect%al capital/
Chaparral 5teel;
Rapi& =ro&%ct
an& =rocess
:evelopment
HB5=
# #6F#?6"C
")p
7e.as4 steel4 #
employees4 "#C!6"##"
One o+ the nation2s +oremost mini6
mills2 core competence is the
rapi& reali$ation o+ technology into
pro&%cts/ 7his case &escribes the
&evelopment o+ a highly
innovative casting techni0%e an&
+eat%res the role o+ the company2s
c%lt%re in achieving its goals/ 7he
company e.empli+ies a learning
organi$ation/
7echnology
(ntegration;
7%rning 8reat
Research into
8reat =ro&%cts
HBR
Article
# #)!@
""p
(n many in&%stries* s%perior
technology integration66the
approach %se& to choose an&
re+ine the technologies employe&
in a ne- pro&%ct* process* or
service66is the ,ey to achieving
s%perior RL: pro&%ctivity an&
spee&* an& s%perior pro&%cts/ (n
this article* -hich is base& on an
ongoing st%&y o+ RL: in vario%s
segments o+ the global comp%ter
in&%stry* Marco (ansiti an&
<onathan West conten& that
technology integration has
become m%ch more important66
an& challenging66+or obvio%s
reasons/ A ra&ical change in the
approach o+ A/5/ companies to
technology integration helps
e.plain the res%rgence o+ the A/5/
electronics in&%stry in the "##s/
B%t one si$e &oes not +it all/
(n&ee&* the a%thors have +o%n&
that an approach that -or,s -ell
in one co%ntry may not be the
best +or another/ 7o be e++ective*
an approach m%st s%it the local
c%lt%re an& con&itions/
7echnology an&
H%man
M%lnerability
HBR Article
# R!#B
)p
Eor most o+ the last > years*
technology ,ne- its place/ (t2s
very &i++erent to&ay/ 7echnology is
not only %bi0%ito%s b%t has
become highly intr%sive as -ell/
On the (nternet* people invent
imaginary i&entities in virt%al chat
rooms/ Chil&ren are gro-ing %p
-ith interactive toy animals/ (+ -e
-ant to be s%re -e2ll li,e -ho
-e2ve become in > years* -e
nee& to ta,e a closer loo, at the
psychological e++ects o+ c%rrent
an& +%t%re technologies/ 7he
smartest people in technology
have alrea&y starte&/ Aniversities
li,e M(7 an& Caltech have been
po%ring millions o+ &ollars into
researching -hat happens -hen
technology an& h%manity meet/
7o learn more abo%t this research*
HBR senior e&itor :iane '/ Co%t%
spo,e -ith one o+ the +iel&2s most
&isting%ishe& scholars665herry
7%r,le* M(72s Abby Roc,e+eller
Ma%$e =ro+essor in the =rogram in
5cience* 7echnology* an& 5ociety
an& the a%thor o+ 'i+e on the
5creen* -hich e.plores ho- the
(nternet is changing the -ay -e
&e+ine o%rselves/ (n a
conversation -ith Co%t%* 7%r,le
&isc%sses the psychological
&ynamics that can &evelop
bet-een people an& their high6
tech toys* &escribes -ays in -hich
machines might s%bstit%te +or
managers* an& e.plains ho-
technology is re&e+ining -hat it
means to be h%man/ 5he -arns
that relatively small &i++erences in
technology &esign can have
&isproportionate e++ects on ho-
h%mans relate to technology* to
one another* an& to themselves/
#(a)ter 42- 8o& Satis,action and 5or6 Per,or%ance
:onna Klein an&
Marriott
(nternational
(nc (A) an& (B)
HB5=
# #6##F6>)
@p
HB5=
# 6##F6>C
Cp
7H
# #6##F6>#
)p
Washington* :C4 BC/# billion
reven%es4 ")*
employees4 "##@6"##F
(n the early "##s* :onna Klein*
:irector o+ Wor,N'i+e programs +or
Marriott (nternational* s%rveye&
hotel an& resort managers an&
+o%n& they increasingly -ere
relie& %pon to help employees
cope -ith the stresses o+ their
personal lives/ (mmigration* chil&
c%sto&y* spo%sal ab%se66
n%mero%s personal iss%es -ere
re0%iring %p to >G o+ managers2
time an& +%eling e.tremely high
t%rnover among the company2s
over "* lo-er6-age
-or,ers/ While Marriott o++ere& a
tra&itional &epen&ent care
reso%rce an& re+erral service*
Klein reali$e& that this service -as
not partic%larly %se+%l or
appropriate +or ho%rly -or,ers/
5he %n&erstoo& that ho%rly
employees nee&e& help +in&ing
cost6e++ective -ays to solve their
personal problems an& more one6
on6one cons%ltation to help them
tap into their local reso%rces/
5hoc,e& by the s%rvey res%lts*
senior management as,e& Klein
an& her associates to &evise a
sol%tion to a&&ress the problem/
7eaching =%rpose; 9nco%rages
&isc%ssion o+ -or,Nli+e iss%es*
partic%larly those speci+ic to
lo-er6-age employees/ Allo-s
st%&ents to thin, creatively abo%t
&i++erent approaches to real6li+e
h%man reso%rce &ilemmas/
Mac7emps;
B%il&ing
Commitment in
the (nterim
Wor,+orce
HB5=
# #6@#)6>
?p
7H
# #6@#)6F>
">p
Anite& 5tates4 sta++ing4 B>F
million reven%es4 "!
employees
Mac7emps is a provi&er o+
temporary -or,ers s,ille& in
comp%ter graphics an& &atabase
management/ Anli,e many
temporary agencies that treat
temps as a commo&ity* Mac7emps
has attempte& to b%il&
relationships -ith temps thro%gh
o++ering bene+its an& training/ 7his
case e.plores the pros an& cons o+
this strategy by presenting &ata
on the %n&erlying economics o+
the arrangement an& the
characteristics o+ the temp +orce/
7eaching =%rpose; 7o &isc%ss the
economics o+ contingent -or,
arrangements* strategies +or
b%il&ing relationships -ith
-or,ersNtemps* strategies +or
sta++ing +irms in highly competitive
environments* an& the changing
social contract bet-een people
an& organi$ations/
Hor&strom;
:issension in
the Ran,s?
HB5=
# #6"#"6?
?@p
HB5=
# #6"#?6?)
?p
West Coast4 retailing4 "#C# (n "#C#* the per+ormance
meas%rement systems an&
compensation policies o+
Hor&strom :epartment 5tores
%ne.pecte&ly came %n&er attac,
by employees* %nions* an&
government reg%lators/ 7he case
7H
# #6F#?6C>
"?p
&escribes the 1sales6per6ho%r1
monitoring an& compensation
system that many believe& to be
instr%mental in Hor&strom2s
phenomenal s%ccess/ (ll%strates
ho- rapi& company gro-th*
&ecentrali$e& management* an&
%nrelenting press%re to per+orm
can &istort per+ormance
meas%rement systems an& lea& to
%n&esirable conse0%ences/
5MA; Micro6
9lectronic
=ro&%cts
:ivision (A)
HB5=
# #6@6!@
"#p
5-it$erlan&4 electronics
man%+act%ring4 "*?
employees4 "##
7he Micro69lectronic =ro&%cts
:ivision o+ 5MA has +inancial an&
organi$ational problems/ Con+lict
an& lac, o+ coor&ination e.ist
bet-een +%nctional gro%ps/
9mployees &o not have a sense o+
&irection an& morale is lo-/ 7he
ca%se o+ these problems is +o%n&
in a change in b%siness
environment +ollo-e& by change
in organi$ation an& management/
A re-ritten version o+ an earlier
case/
=%ll the =l%g on
5tress
HBR Article
# R!)<
Fp
5tress is rampant* stress is
gro-ing* an& stress h%rts the
bottom line/ A "### st%&y o+
@F* -or,ers reveale& that
health care costs are "@)G higher
+or those -ho are stresse& or
&epresse&* in&epen&ent o+ other
health iss%es/ B%t -hat e.actly is
stress? (t %s%ally re+ers to o%r
internal reaction to negative*
threatening* or -orrisome
sit%ations66a looming per+ormance
report* say* or interactions -ith a
&ismissive colleag%e/ Acc%m%late&
over time* negative stress can
&epress yo%* b%rn yo% o%t* ma,e
yo% sic,* or even ,ill yo%66
beca%se it2s both an emotional
an& a physiological habit/ O+
co%rse* many companies
%n&erstan& the negative impact o+
c%m%lative stress an& o++er
programs to help employees
co%nteract it/ 7he problem is that
employees in the greatest nee& o+
help o+ten &on2t see, it/ 5ince
"##"* the a%thors have st%&ie&
the physiological impact o+ stress
on per+ormance* at both the
in&ivi&%al an& organi$ational
levels/ 7heir goal largely has been
to &eco&e the %n&erlying
mechanics o+ stress/ A+ter -or,ing
-ith more than >* -or,ers
an& managers in more than "
organi$ations* the a%thors have
+o%n& that learning to manage
stress is easier than most people
thin,/ 7hey have &evise& a
scienti+ically base& system o+
tools* techni0%es* an&
technologies that organi$ations
can %se to re&%ce employee stress
an& boost overall health an&
per+ormance/
#(a)ter 43- Hu%an Resource Mana'e%ent
Compensation HB5= 'ong (slan&* H34 :escribes a company2s str%ggles
an&
=er+ormance
9val%ation at
Arro-
9lectronics
# #6C6?#
?Fp
semicon&%ctors4 BF billion
reven%es4 F*
employees4 "##@6"##C
in implementing a s%bjective
per+ormance rating system +or its
employees/ (n partic%lar* it
&escribes the &i++ic%lties +ace& by
the C9O in getting managers to
combat 1ratings in+lation166that is*
to pro&%ce n%merical ratings that
are both &i++erentiate& an& 1not
too high/1
7he Eirm-i&e
!F &egree
=er+ormance
9val%ation
=rocess at
Morgan 5tanley
HB5=
# #6@#C6>!
"Fp
7H
# #6@6)C
"?p
He- 3or,* H34 investment
ban,ing4 B" billion
reven%es4 ?*
employees4 "##!6"##>
:escribes Morgan 5tanley2s
+irm-i&e* !F6&egree
per+ormance eval%ation process/
9val%ation +orms are incl%&e& as
e.hibits/ 7eaching =%rpose; 7o
intro&%ce st%&ents to a !F6
&egree per+ormance eval%ation
process/
H%man
Reso%rces at
He-lett6=ac,ar&
(A) an& (B)
HB5=
# #6@#>6>"
?)p
HB5=
# #6@#>6>?
)p
7H
# #6@#)6??
)p
Cali+ornia4 high tech4 large4
B?> billion reven%es4
#* employees4 "#)#6
"##?
=rovi&es an overvie- o+ the
h%man reso%rce policies an&
practices applie& by He-lett6
=ac,ar& (H=)/ :isc%sses H=2s
reactions as an organi$ation to
changes in its b%siness
environment/ As s%ch* it is an
opport%nity to analy$e H=2s
practices* an& ho- they have
been a++ecte& thro%gh the years in
all +o%r policy areas; sta,ehol&er
in+l%ence* +lo-s* re-ar&s* an&
-or, systems/
7heyOre Hot
9mployees*
7heyOre =eople
HBR Article
# R??9
)p
(n this essay* b%siness thin,er
=eter :r%c,er e.amines the
changing &ynamics o+ the
-or,+orce66in partic%lar* the nee&
+or organi$ations to ta,e j%st as
m%ch care an& responsibility -hen
managing temporary an& contract
-or,ers as they &o -ith their
tra&itional employees/ 7-o +ast6
gro-ing tren&s are &eman&ing
that b%siness lea&ers pay more
attention to employee relations*
:r%c,er says/ Eirst is the rise o+
the temporary* or contract*
-or,er4 C million to " million
temp -or,ers are place& each &ay
-orl&-i&e/ An& they2re not j%st
+illing in at reception &es,s/ 7o&ay*
there are temp s%ppliers +or every
,in& o+ job* all the -ay %p to C9O/
5econ&* a gro-ing n%mber o+
b%sinesses are o%tso%rcing their
employee relations to pro+essional
employee organi$ations (=9Os)66
thir&6party gro%ps that han&le the
ever6mo%nting a&ministrative
tas,s associate& -ith managing a
company2s employees/ 7emps an&
=9Os +ree %p lea&ers to +oc%s on
the b%siness rather than on HR
+iles an& paper-or,/ B%t i+
organi$ations o%tso%rce those
+%nctions* they nee& to be care+%l
not to &amage relationships -ith
their people in the process*
:r%c,er concl%&es/
Meri$on
Comm%nications
(nc;
(mplementing a
H%man
HB5=
# #6""6"?
?!p
Anite& 5tates4
telecomm%nications4 BF
billion reven%es4 ?F*
employees4 "##F6?
(n early ?* Meri$on
Comm%nications implemente& a
H%man Reso%rces Balance&
5corecar& to eval%ate the
e++ectiveness o+ an& payo++s +rom
Reso%rces
Balance&
5corecar&
h%man reso%rce management/
7his case &escribes the bene+its o+
the scorecar& an& the challenges
o+ meas%rement an&
implementation/ 7eaching
=%rpose; 7o help st%&ents
%n&erstan&; ") ho- to implement
a Balance& 5corecar&* ?) ho- to
meas%re an& improve the
e++ectiveness o+ s%pport +%nctions*
an& !) ho- to lin, non+inancial
meas%res to +inancial meas%res o+
s%pport +%nctions -hen +inancial
bene+its are &i++ic%lt to 0%anti+y/
#(a)ter !- Resourcin' t(e Or'anisation
<et Bl%e
Air-ays;
5tarting +rom
5cratch
HB5=
# #6C"6!>@
?p
7H
# #6C"6!CF
Fp
He- 3or,* H34 airlines4
start6%p4 #> employees4
?
<etBl%e Air-ays sho-s ho- an
entreprene%rial vent%re can %se
h%man reso%rce management*
speci+ically a val%es6centere&
approach to managing people* as
a so%rce o+ competitive
a&vantage/ 7he major challenge
+ace& by Ann Rhoa&es is to gro-
this people6centere& organi$ation
at a rapi& rate* -hile retaining
high stan&ar&s +or employee
selection an& a small company
c%lt%re/ 7eaching =%rpose; 7o
consi&er the role o+ h%man
reso%rce management*
lea&ership* an& val%es in a start6
%p vent%re* an& to a&&ress the
tension bet-een a strong
organi$ational c%lt%re an& rapi&
gro-th/
Avant8o HB5=
# #6F"6#>
"#p
5ilicon Malley* CA4 high
technologyN-irelessNmobile4
!" employees4 "##C6?
Richar& O-en* C9O o+ Avant8o* is
preparing +or a meeting in -hich
he -ill set the h%man reso%rce
policy +or the +irm going +or-ar&/
(t has been three months since
the company2s (=O* an& given the
tremen&o%s cramp in hiring over
the si. months prior to the (=O*
he ,no-s that this meeting -ill
set the e.pectations +or the many
ann%al eval%ations that -ill +ollo-/
Appermost in his min& is the
&ecision on -hether to implement
a 1+orce&6c%rve1 gra&ing scheme*
an& the implications o+ this
&ecision on sta++ perceptions an&
noti+ication/
7he Rit$6Carlton
Hotel Company
HB5=
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!p
7H
# #6F?6""!
Washington* :C4
hospitality4 B"/> billion
reven%es4 "C*
employees4 ?
(n j%st seven &ays* the Rit$6
Carlton trans+orms ne-ly hire&
employees into 1'a&ies an&
8entlemen 5erving 'a&ies an&
8entlemen/1 7he case &etails a
ne- hotel la%nch* +oc%sing on the
%ni0%e blen& o+ lea&ership* 0%ality
processes* an& val%es o+ sel+6
respect an& &ignity* to create
a-ar&6-inning service/
5A=9R MA'A
(nc;
=ro+essional
:evelopment
=rogram
HB5=
# 6#6"#
?"p
7H
# #6#6?
@p
Minnesota4 +oo&
-holesaleNretail4 B")/@
billion reven%es4 >*
employees4 "###
5A=9RMA'A e.amines the
creation an& implementation o+ a
training program +or attracting
an& retaining college gra&%ates
+or the nation2s largest -holesale
+oo& &istrib%tion company/ (t
a&&resses; ") program &esign an&
?) the management o+ the &esign
e++ort an& program
implementation/ 7he case is
appropriate +or co%rses in
organi$ational behavior* h%man
reso%rces management* an&
general management/ 7eaching
=%rpose; 7o learn ho- to manage
the creation* intro&%ction* an&
perpet%ation o+ a comple. training
program in a large* &ynamic
b%siness organi$ation -ith a
strong c%lt%re/
58 Co-en; He-
Recr%its
HB5=
# #6@?6?C
">p
He- 3or,4 +inancial
services4 > employees4
?"
Chip Rae* &irector o+ recr%iting at
58 Co-en* m%st &eci&e -hich
recr%its to ,eep a+ter the +inal
intervie- process +or ne- o%tsi&e
associate hires/ Along -ith team
captains assigne& to each school*
he revie-s the criteria %se& to
ma,e hiring &ecisions/ 7heir ne-
strategy is to loo, beyon& the top
" core b%siness schools +or the
best o+ class in the top ?>*
avoi&ing people in the mi&&le o+
their class/ A+ter some initial
resistance* senior managers
event%ally see the -is&om o+ the
ne- strategy/
#(a)ter 4- Or'anisational #ontrol and Po7er
=o-er is the
great motivator
HBR Article
# R!"<
#p
Ho-a&ays* -ith organi$ations
gro-ing ever +latter an&
responsibility being p%she&
+%rther &o-n the ran,s* a&mitting
to a &esire +or po-er is a little o%t
o+ +ashion/ B%t as the research in
this "#)F classic HBR article
sho-s* po-er is essential to goo&
management/ (n +act* -hen it
comes to managing big
companies* the &esire +or po-er66
that is* a manager2s &esire to
have an impact* to be strong an&
in+l%ential66is more important than
the nee& to get things &one or the
-ish to be li,e&/ 7he nee& to
achieve* -hile important in small
companies* act%ally becomes
co%nterpro&%ctive in large*
comple. organi$ations* lea&ing
managers to try to &o things
themselves rather than sprea&
tas,s among many people/ An&
managers -ho nee& to be li,e&
ten& to ma,e e.ceptions +or
partic%lar s%bor&inates2 nee&s*
%n&ermining morale/ B%t see,ing
po-er is not the same as see,ing
glory/ =eople -ho -ant po-er
only to +%rther their o-n careers*
rather than the goals o+ the
organi$ation* ten& to have
s%bor&inates -ho are loyal to
them b%t not to the company*
ma,ing them less e++ective on the
-hole/ An& -anting po-er is not
the same as thro-ing it aro%n&/
Correlations bet-een employee
morale an& sales +ig%res sho-
that in&ivi&%als -ho manage by
+iat are less e++ective than those
-hose style is more &emocratic/
As the many e.amples sho-* top
e.ec%tives can learn to tell -ho
the goo& managers are li,ely to
be an& to train e.isting ones to be
more e++ective/ McKinsey A-ar&
Winner/
Balancing
Corporate
=o-er; A He-
Ee&eralist =aper
HBR Article
# #?F@
#p
8iven that organi$ations are seen
more an& more as minisocieties*
the prospect o+ applying political
principles to management ma,es
a great &eal o+ sense/ Ee&eralism
is partic%larly appropriate beca%se
it o++ers a -ell6recogni$e& system
+or &ealing -ith para&o.es o+
po-er an& control; the nee& to
ma,e things big by ,eeping them
small4 to enco%rage a%tonomy b%t
-ithin bo%n&s4 an& to combine
variety an& share& p%rpose/
Ee&eralism respon&s to these
para&o.es by balancing po-er
among those in the center o+ the
organi$ation* those in the centers
o+ e.pertise* an& those in the
center o+ the action66the operating
b%sinesses/ Ee&eralism avoi&s the
ris,s o+ a%tocracy an& the
overcontrol o+ a central
b%rea%cracy/ (t ens%res a
meas%re o+ &emocracy an&
creates a 1&isperse& center1 that
is more a net-or, than a place/
McKinsey A-ar& Winner/
Motorola
Corporation;
7he Mie- +rom
the C9O O++ice
HB5=
# #6@#@6"@
">p
5cha%mb%rg* ('4
electronics4 Eort%ne >4
B") billion reven%es4
"?* employees
Motorola* a lea&er in
semicon&%ctors an&
telecomm%nications* embar,e& on
an ambitio%s program o+ rene-al
beginning in the early "#Cs*
lea&ing to &ramatic improvements
in the company2s 0%ality* cycle
time* an& gro-th/ M%ch o+ this
progress -as attrib%te& to a
major investment in -or,ers2
s,ills an& in mechanisms that
enco%rage& teams o+ employees
to -or, on contin%o%s
improvement projects/ (n "##@
top management consi&ere&
-hether to promote a corporate6
-i&e empo-erment initiative that
-o%l& enco%rage an
%nprece&ente& &o-n-ar&
&elegation o+ responsibilities/ With
very ambitio%s global gro-th
goals* Motorola aspire& to be 1the
+inest corporation in the -orl&*1
-ith an organi$ation that -as
both more +le.ible an&
participative an& &e&icate& to
contin%o%s improvement/ 7he
case +oc%ses on the role o+ the
C9O o++ice in promoting corporate
initiatives -hile preserving the
B") billion corporation2s
&ecentrali$e& str%ct%re/
Kent%c,y Erie&
Chic,en (<apan)
'imite&
HB5=
# #6!C)6@!
?p
<apan* Anite& 5tates4 +ast
+oo&4 large4 B? billion
reven%es4 "#)6"#C!
:escribes the internationali$ation
o+ the Kent%c,y Erie& Chic,en
(KEC) +ast +oo& chain* +oc%sing on
KEC2s entry into <apan/ An
entreprene%rial co%ntry general
manager* 'o% Weston* battles
n%mero%s problems to establish
the b%siness an& is event%ally
highly s%ccess+%l/ (n &oing so*
Weston ignores or circ%mvents
policies an& control +rom KEC2s
hea&0%arters an& becomes very
%pset -hen more sophisticate&
planning* coor&ination* an&
control systems begin to constrain
his +ree&om/ 7he case presents
both the hea&0%arters an&
s%bsi&iary perspectives an& allo-s
&isc%ssion o+ the con+licts bet-een
strategic planning an& control an&
entreprene%rial in&epen&ence in a
m%ltinational company/
#(a)ter - Or'anisation De.elo)%ent #ulture
5eale& Air
Corporation;
8lobalisation
an& Corporate
C%lt%re
HB5=
# #6!#C6#F
"Cp
HB5=
# #6!#C6#)
!@p
Anite& 5tates* 9%rope* Asia4
pac,aging (protective an&
specialty)4 BC million
reven%es4 @*?
employees4 "##)
5eale& Air Corp/2s C9O an& COO
are consi&ering -hat approach
they sho%l& ta,e to b%il&ing a
seamless corporate c%lt%re
-orl&-i&e/ Anticipating contin%ing
gro-th an& e.pansion* especially
o%tsi&e the Anite& 5tates* they
are concerne& -ith preserving an&
promoting the c%lt%re that has
been one o+ the company2s ,ey
assets/ Ho-ever* their e.periences
in integrating ac0%ire& companies*
especially o%tsi&e the Anite&
5tates* have heightene& their
a-areness o+ &i++erences among
the regional c%lt%res o+ the -orl&
an& the challenges they +ace in
maintaining a %ni+ie& corporate
c%lt%re/ 7eaching =%rpose; 7o
ill%strate the challenges o+
b%il&ing a single corporate c%lt%re
in a global enterprise an& to
e.plore the tensions bet-een A/5/
c%lt%re an& c%lt%res o+ 9%rope an&
Asia/
Meg Whitman at
eBay (nc (A)
HB5=
# #6@"6?@
!?p
5an <ose* CA4 (nternet4
"###
Meg Whitman ta,es over as C9O
o+ eBay +rom the +o%n&er/ 5he
m%st +ig%re o%t ho- to lea& the
company thro%gh a stage o+
phenomenal gro-th -itho%t
compromising eBay2s %ni0%e
e.ternal c%stomer c%lt%re an&
internal c%lt%re66its ,ey s%ccess
+actors/ A re-ritten version o+ an
earlier case/
Corning T "#C!6
#F; 7ransition at
the 7op
HB5=
# #6@"6!@
!p
Eollo- on Case
# #6@"6!>
Corning* H34 glass4 Eort%ne
>4 B> billion reven%es4
?* employees4 "#C!6
"##F
Eoc%ses on <amie Ho%ghton2s
e++orts to revitali$e Corning +rom
"#C!6"##F* incl%&ing the
&evelopment o+ a very strong set
o+ val%es an& c%lt%re/ 7he iss%e
centers aro%n& Roger Ac,erman2s
rise to presi&ent* then
chairmanNC9O* an& his &rive to
both change the b%siness
strategically an& +inancially an&
&evelop a ne- c%lt%re to s%pport
this change/
5la&e =lating
:epartment
HB5=
# #6@#F6"C
""p
Michigan4 metal pro&%cts :escribes a con+lict bet-een the
val%es an& norms o+ a segment o+
an internal social system an&
those o+ management an& the
-i&er c%lt%re/ (ncl%&es &ecision
opport%nity/ A re-ritten version o+
an earlier case/
Campaigning +or HBR article Most organi$ations m%st change i+
Change # R?)8
>p
they2re to stay alive/ Change is
to%gh to accomplish* b%t it2s not
impossible an& can be
systemati$e&/ 7he a%thor* -ho
has been involve& in change
initiatives at scores o+ companies*
believes that the s%ccess o+ s%ch
programs has more to &o -ith
e.ec%tion than -ith
concept%ali$ation/ 7he s%ccess+%l
change programs he observe& ha&
one thing in common; 7hey
employe& three &istinct b%t lin,e&
campaigns66political* mar,eting*
an& military/ A political campaign
creates a coalition strong eno%gh
to s%pport an& g%i&e the initiative/
A mar,eting campaign m%st go
beyon& simply p%blici$ing the
initiative2s bene+its/ (t +oc%ses on
listening to i&eas that b%bble %p
+rom the +iel& as -ell as on
-or,ing -ith lea& c%stomers to
&esign the initiative/ A clearly
artic%late& theme +or the
trans+ormation program m%st also
be &evelope&/ A military campaign
&eploys e.ec%tives2 scarce
reso%rces o+ attention an& time/
5%ccess+%l e.ec%tives la%nch all
three campaigns sim%ltaneo%sly/
7he three al-ays +ee& on one
another* an& i+ any one campaign
is not properly implemente&* the
change initiative is bo%n& to +ail/
Agilent
7echnologies;
Organisational
Change
(A) an& (B)
5tan+or& 85B
:"A
!>p
:"B
?p
technology4 B"/C billion
reven%es4 @F*
employees4 ?6?"
On March ?* "###* He-lett6
=ac,ar& (H=) anno%nce& a plan to
create a separate company*
s%bse0%ently name& Agilent
7echnologies* ma&e %p o+ H=2s
b%sinesses in test an&
meas%rement* semicon&%ctor
pro&%cts* healthcare sol%tions*
chemical analysis* an& the relate&
portions o+ H= laboratories/ (n
&eveloping the trans+ormation
strategy* Agilent presi&ent an&
C9O* He& Barnholt* grapple& -ith
ho- to improve the e++iciency an&
e++ectiveness o+ the ne- company
-hile still maintaining the best
portions o+ H=2s c%lt%re an&
practices/ Barnholt a&opte& H=2s
val%es o+ innovation an&
contrib%tion* tr%st an& respect +or
in&ivi&%als* an& %ncompromising
integrity* b%t he a&&e& three ne-
val%es; spee&* +oc%s* an&
acco%ntability/ Barnholt also
-ante& to improve the company2s
e++iciency in terms o+ share&
services/ (n mi&6?"* the Agilent
team +ace& a series o+ %ne.pecte&
challenges/ On April >* ?"*
Barnholt anno%nce& that b%siness
con&itions ha& -orsene& +%rther
than previo%sly e.pecte&/
Barnholt -on&ere& -hether he
an& his team ha& gone too +ar in
the organi$ational an& c%lt%ral
changes they ha& trie& to
implement/ He -on&ere& -hether
his vision o+ spee&* +oc%s* an&
acco%ntability -o%l& be
compatible -ith H=2s legacy
val%es an& c%lt%re* an& i+ so* ho-
-o%l& he integrate the t-o?
7eaching =%rpose; 5t%&ents -ill
analy$e ho- a company s%ch as
Agilent grapple& -ith the
challenges o+ trans+orming an
ingraine& H= c%lt%re -ithin a
bran& ne- -or, environment/
5t%&ents -ill get a sense o+ the
challenges sp%n6o++ companies
s%ch as Agilent +ace* assess
Agilent2s strategies an&
implementation* an& recommen&
a&&itional strategies an& steps/
Change Witho%t
=ain
HBR Article
# R@"
>p
Change or perish is a corporate
tr%ism* b%t so is its %nhappy
corollary; many companies
change an& perish/ 7he process o+
change can tear an organi$ation
apart/ :ra-ing on his research
over ten years* the a%thor
s%ggests that companies alternate
major change initiatives -ith
care+%lly pace& perio&s o+ smaller*
organic change* %sing processes
he calls tin,ering an& ,l%&ging
(,l%&ging is tin,ering on a large
scale)/ 7he res%lt is &ynamic
stability* -hich allo-s change
-itho%t +atal pain/ Citing
e.amples +rom 8eneral 9lectric to
Barnesan&noble/com* the a%thor
&escribes &ynamic stability as a
process o+ contin%al b%t relatively
small recon+ig%rations o+ e.isting
practices an& b%siness mo&els
rather than the creation o+ ne-
ones/ As they tin,er an& ,l%&ge*
s%ccess+%l companies -o%l& be
-ise to +ollo- these +o%r
g%i&elines; re-ar& shameless
borro-ing4 appoint a chie+
memory o++icer -ho can help the
company avoi& ma,ing the same
ol& mista,es4 tin,er an& ,l%&ge
internally be+ore searching +or
sol%tions e.ternally4 an& hire
generalists* beca%se generalists
ten& to be more a&ept at tin,ering
an& ,l%&ging/ As a para&igm o+
s%ccess+%l pacing* the a%thor cites
the e++orts o+ 'o% 8erstner at (BM*
American 9.press 7ravel Relate&
5ervices* an& R<R Habisco/
#(a)ter /- Mana'e%ent De.elo)%ent and Or'anisational E,,ecti.eness
Wain-right
(n&%stries;
Beyon& the
Bal&ri&ge
HB5=
# #6!#F6?"#
">p
Misso%ri4 a%tomotive
s%pplier4 B?C million
reven%es4 ! employees4
"#)#6"##F
7races the gro-th o+ Wain-right*
a small a%tomotive s%pply
company* +oc%sing on its
commitment to 0%ality in "#C"
an& the evol%tion o+ its 0%ality
c%lt%re/ Brea,thro%gh programs
that stress 1tr%st an& belie+1 in
the -or,+orce an& commitment to
c%stomers res%lt in Wain-right
-inning the Malcolm Bal&rige
A-ar& in "##@/
Brea,thro%gh HBR Article HBR2s e&itors searche& +or the
(&eas +or ?@;
7he HBR list
# R@?A
?p
best ne- i&eas relate& to the
practice o+ management an& came
%p -ith a collection that is as
&iverse as it is provocative/ 7he
?@ HBR 'ist incl%&es emergent
concepts +rom biology* net-or,
science* management theory* an&
more/ A +e- highlights; Richar&
Elori&a -on&ers -hy A/5/ society
&oesn2t seem to be thin,ing abo%t
the +lo- o+ people as the ,ey to
America2s a&vantage in the
1creative age/1 :iane '/ Co%t%
&escribes ho- the revol%tion in
ne%rosciences -ill have a major
impact on b%siness/ Clayton M/
Christensen e.plains the la- o+
conservation o+ attractive pro+its;
When attractive pro+its &isappear
at one stage in the val%e chain
beca%se a pro&%ct becomes
commo&iti$e&* the opport%nity to
earn attractive pro+its -ith
proprietary pro&%cts %s%ally
emerges at an a&jacent stage/
:aniel H/ =in, e.plains -hy the
master o+ +ine arts is the ne-
MBA/ Herminia (barra &escribes
ho- companies can get the most
o%t o+ managers ret%rning +rom
lea&ership6&evelopment
programs/ (0bal D%a&ir s%ggests a
ra&ical +i. +or the thir& -orl&2s
tra&e problems; 8et the Worl&
Ban, to len& to rich co%ntries so
that there are reso%rces +or
retraining -or,ers in &ying
in&%stries/
8etting the
tr%th into
Wor,place
5%rveys
HBR Article
# R??K
)p
7here2s no &o%bt that companies
can bene+it +rom -or,place
s%rveys an& 0%estionnaires/ 8oo&
s%rveys acc%rately home in on the
problems the company -ants
in+ormation abo%t/ 7hey are
&esigne& so that as many people
as possible act%ally respon&/ An&
goo& s%rvey &esign ens%res that
the spectr%m o+ responses is
%nbiase&/ (n this article* the
a%thor* a +ormer research scientist
at the Aniversity o+ Michigan an&
c%rrently the presi&ent o+ a s%rvey
&esign +irm* e.plores some glaring
+ail%res o+ s%rvey &esign an&
provi&es "F g%i&elines to improve
-or,place assessment tools/
Applie& j%&icio%sly* these r%les
-ill not only ma,e a tangible
&i++erence in the 0%ality an&
%se+%lness o+ the &ata obtaine&*
b%t -ill also pro&%ce an increase&
response rate/ 7he g%i&elines66
an& the problems they a&&ress66
+all into +ive areas; content*
+ormat* lang%age* meas%rement*
an& a&ministration/ Eollo-ing the
g%i&elines in this article -ill help
yo% get %nbiase&* representative*
an& %se+%l in+ormation +rom yo%r
-or,place s%rvey/
R%&i 8assner HB5= 8lobal4 9.plores the roles o+ C9O R%&i
an& the
9.ec%tive
Committee o+
BM8
(nternational
(A)
# #6@#@6>>
?"p
7H
# #6@#@6"??
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entertainmentNm%sic4 large4
B? billion reven%es4 "##!
8assner an& the #6person
e.ec%tive committee in lea&ing
BM8 (nternational/ BM8
(nternational is the international
m%sic s%bsi&iary o+ Bertlesmann*
a 8erman company that is the
secon&6largest me&ia
conglomerate in the -orl&/
:escribes a "##! &ecision that
8assner an& the e.ec%tive
committee m%st ma,e abo%t
-hether or not to change
managers2 b%siness plans an&
bon%s targets as a res%lt o+ a
ne-ly negotiate re&%ce&
man%+act%ring cost/ Allo-s +or
&isc%ssion o+ a n%mber o+ timely
an& important iss%es; ") the
comple.ities o+ managing an&
gro-ing a large global b%siness4
?) the tensions bet-een
centrali$e& corporate control an&
&ecentrali$e& local management
in a global organi$ation4 !) the
impact o+ lea&ership style on
corporate c%lt%re an&
per+ormance4 @) the challenges o+
lea&ing a senior mangement
team4 an& >) the +inal &ecision by
C9O R%&i 8assner an& the
s%bse0%ent actions ta,en by the
members o+ the e.ec%tive
committee/
!M; =ro+ile o+ an
(nnovating
Company
HB5=
# #6!#>6"F
?p
Anite& 5tates4 high
technology pro&%cts4
Eort%ne >
7races the birth an& &evelopment
o+ !M Corp/* +oc%sing in partic%lar
on the origins o+ its
entreprene%rially6base& ability to
innovate/ (n partic%lar* it
highlights the role o+ C9O William
'/ McKnight in creating a %ni0%e
set o+ val%es* policies* an&
str%ct%res to n%rt%re an& &evelop
contin%o%s rene-al/ With the
changing environment o+ the
"#Cs* ho-ever* a ne- generation
o+ C9Os begin to a&opt ne-
policies an& change the c%lt%ral
norms that helpe& !M gro-/ 7he
trigger iss%e +oc%ses on -hat
other changes are re0%ire&/