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ORGANIZATIONAL MANAGEMENT PROGRAM

Third Edition (f)
July 2004

ISSUES IN MANAGEMENT
ADVANCE Program Ohio Valley College

Adult Learner Guide

TABLE OF CONTENTS
MODULE AT A GLANCE..........................................................................................................................................1 ISSUES IN MANAGEMENT (3)............................................................................................................................... 1 MODULE DESCRIPTION........................................................................................................................................ 1 MODULE INTRODUCTION..................................................................................................................................... 1 LEARNING OUTCOMES................................................................................................................................. 1 EXTERNAL RESOURCES........................................................................................................................................ 2 EVALUATION..............................................................................................................................................................3 ATTENDANCE AND PARTICIPATION...................................................................................................................... 3 SUMMARY PAPER CONTENT.......................................................................................................................... 3 writing the summary paper...................................................................................................................................3 summary paper grading method...........................................................................................................................4 FACILITATOR’S COMMITMENT TO ADULT LEARNERS............................................................................................. 5 GRADING POINT BREAKDOWN............................................................................................................................ 6 ADULT LEARNER ASSIGNMENTS........................................................................................................................7 WEEK ONE......................................................................................................................................................... 7 WEEK TWO........................................................................................................................................................ 7 WEEK THREE..................................................................................................................................................... 7 WEEK FOUR....................................................................................................................................................... 8 WEEK FIVE........................................................................................................................................................ 8 LOGISTICS CHART..................................................................................................................................................9 APPENDIX..................................................................................................................................................................10 THE FIVE AREAS OF MANAGEMENT.................................................................................................................... 11 GROUP REPORT GUIDELINES.................................................................................................................... 13 SWOT ANALYSIS.......................................................................................................................................... 15 EUSEBIUS OMNIBUS CORPORATION (EOC)- A CASE STUDY AND EXPERIENTIAL EXERCISE........18 EOC WORKSHEET 1.........................................................................................................................................21 EOC - WORKSHEET 2.......................................................................................................................................22 EOC - WORKSHEET 3.......................................................................................................................................23 QUICK-TEST: STRATEGIC DECISIONS...................................................................................................... 24 NEGOTIATION VIA ULTIMATUM.............................................................................................................. 25 QUALITY MANAGEMENT: A BRIEF CHRONOLOGY...............................................................................26 CHRONOLOGY OF TQM............................................................................................................................... 32 CASE STUDY: H. SERVICE CENTER.......................................................................................................... 35

Issues in Management

Adult Learner’s Guide

MODULE AT A GLANCE
ISSUES IN MANAGEMENT (3) MODULE DESCRIPTION Adult learners examine management control functions, strategic planning, and organizational structure and design. Also examined are motivational theory and its application to individual and group functioning in work and home situations. Leadership styles related to particular circumstances are analyzed. Negotiation concepts and skills are covered through readings and class practice, with an analysis of the effect on productivity. Total Quality Management (TQM) is studied and contrasted with Management by Objectives (MBO). MODULE INTRODUCTION The major theme of this module is management, that is, management as it pertains to the dynamics of leadership, motivation, strategic planning, and controlling. Total Quality Management (or more simply, quality management), organizational design, work force diversity, and successful negotiating strategies receive attention. Learning activities disseminate information and bridge the gap between theory and practice by integrating content knowledge with application. Adult learners have the opportunity to assimilate information, synthesize it with experience, and apply it to their current world of work. Management as an area of study, then, diffuses information, stimulates the learner, and enriches professional practice. The Logistics Chart summarizes the recommended sequence of activities. In general, the sequence of events for each session builds on the conceptual framework of reading reinforced by experience. The adult learners read in an area of study and then experience the concepts and principles in the classroom through a variety of activities such as brief lecture reviews, brainstorming, group discussions, presentations, or related methods. Adult learners have opportunities to integrate new information with the material so that they can continue to develop a specialized knowledge base in the management field. In closing a session, adult learners reflect upon their experiences in a journal. This gives them the opportunity to record significant events and creatively plan future utilization of what they have learned. LEARNING OUTCOMES Upon successful completion of this module, adult learners will be able to: 1. Appreciate the various dimensions of management. 2. Understand management processes and skills that influence organizational effectiveness. 3. Understand different leadership styles and their impact on subordinate and organizational performance.
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M. Management (8th ed.). “Situational Leadership II Overview Kit”.). Upper Saddle River. NJ: Prentice Hall. “Leader Behavior Analysis II Instrument”. E. & Johnson. & Coulter. 7. ISBN 0-13-143994-4. ISBN 0-312-26037-7. Apply management skills and principles to work-related situations. 6. Appreciate the impact that values have upon a variety of management decisions. (1999). Kenneth. P. 5.(2001). S. K . (Self. P. D. Martin’s Press. ISBN 0-13-017598-6. Kenneth. Other) Page 2 © 2004 .Issues in Management Adult Learner’s Guide 4.. Hacker. (2005). Boston: Bedford Books of St. Management of Organizational Behavior: Utilizing Human Resources (8th ed. Blanchard..). revised Ed. A Writer’s Reference (4th ed. Upper Saddle River.. Hersey. Analyze and explain TQM methods and relate them to professional situations. EXTERNAL RESOURCES TEXTS Robbins. Recognize and discuss diversity in the workforce. D. Blanchard. NJ: Prentice Hall. INSTRUMENTS Blanchard.H.

SUMMARY PAPER CONTENT A Summary Paper is due one week following the last class session. Must have a cover page that includes the following: 1. WRITING THE SUMMARY PAPER A. The body of the paper must include the following: Three to four specific academic concepts discovered in the module Page 3 © 2004 C. negotiating for favorable outcomes) that is germane to one’s work environment. In practical terms. Organizational Management courses rely heavily on the dynamics of cohort interaction and group processes to integrate and apply the learning of academic content. Weaknesses). ATTENDANCE AND PARTICIPATION Class attendance is required to complete the module. . Module name and number 3. The cohort model also emphasizes the development and practice of interpersonal communication skills and teamwork (e. one module session is equivalent to three weeks of traditional semester course work. Unlike traditional courses.Issues in Management Adult Learner’s Guide EVALUATION This adult earner evaluation section provides guidelines and tools designed to help the facilitator approach the grading process with an understanding of the unique learning styles of adult learners.g. The paper should integrate readings.. Name of paper 4. group problem-solving and negotiation). Must be 8-10 double spaced pages in length and formatted according to APA style as outlined in A Writer’s Reference. D. This evaluation scheme includes brief reaction/critique papers and presentations to acknowledge the various learning styles that adults possess. Facilitator’s name 5.. Carefully identify why certain approaches were chosen and why others were not (Strengths vs.g. Date submitted Must include an introductory paragraph with a succinct thesis statement. Begin by identifying the problem and then move to suggesting a managerial strategy or procedure that significantly resolves the issue. class work. The format therefore necessitates class attendance. Adult learner’s name 2. B. The Summary Paper should address the interaction and foundation of a specific topic or issue (e. and personal job situations and experiences.

The adult learner successfully moves the paper through academic constructs and experiential documentation to critical analysis. ideas and content may be developed with limited details and examples. Organization and form enhance the central idea and theme.C The paper has some focus and support. how do you respond to the content. The voice of the writer contributes to the writer’s meaning through appropriate and varied sentence structure and word choices. Use APA style as outlined in A Writer’s Reference (Hacker 1999) to document all sources.Issues in Management Adult Learner’s Guide Each concept must be addressed in the following way: Reference an academic concept gleaned from classroom or reading experience during the course of this module. ideas and content are richly developed with details and examples. Provide a context of experience where you saw this academic concept in operation. Organization and form are appropriate. Surface features do not interfere with understanding or distract from meaning. The writing may be somewhat disorganized or too obviously structured. That is. B/C . positive or negative. ideas are adequately developed through details and examples. Surface feature errors may reduce understanding Page 4 © 2004 . focused. engaging. basic sentence structure and limited vocabulary convey a simple message. and defend your position? E. and ideas are generally presented coherently. The voice of the writer is compelling and conveys the writer’s meaning through effective sentence structure and precise word choices. The final page must be a reference list that is completed according to APA style as outlined in A Writer’s Reference. The paper must conclude with a re-statement of the thesis and a conclusion paragraph. SUMMARY PAPER GRADING METHOD A-A/B The paper is clear. B The paper is reasonably clear. and focused. The voice of the writer is generally absent. and well supported. but has not fully developed the area of critical analysis. original. ideas are presented coherently to move the reader through the text. The adult learner has clearly brought the reader through properly cited academic constructs and experiential documentation. F. The paper demonstrates a clear balance of these three components. Readdress the concept and the experience with critical thought.

Issues in Management Adult Learner’s Guide and interfere with meaning. Critical analysis is all but absent from the paper. Adult learners’ work is valued and will be treated with respect. Adult learners will receive a copy of the institution’s rewrite and late-paper policy. FACILITATOR’S COMMITMENT TO ADULT LEARNERS Adult Learners’ papers will be treated as college work. The writer’s tone is flat. Awkward sentence structure and inadequate vocabulary interfere with understanding. There is little discernible shape and no direction. Papers will be marked accordingly. Demonstrated critical analysis is absent. ideas and content are supported by few details and examples. C/D (incomplete) The paper has little focus and development. and large generalizations are made. Page 5 © 2004 . and often-long portions of the paper are given to rambling of life experience without academic context. The content areas of academic constructs are limited. The facilitator will evaluate them from that perspective and will make appropriate documented comments and suggestions. Limited control of surface features makes paper difficult to read.

g. and critical thought Points 20 • • • • • Points 25 Module Outcomes Demonstrated knowledge of weekly reading assignments Constructive comments made in classroom discussion Important issues raised Sharing of relevant workplace experience and knowledge Active participation in small group activities Module Outcomes Per week assignments at five points each Assignment examples: a) One page critical response essays to a portion of assigned reading. not quantity. Weekly Projects Criterion Does the adult learner submit weekly written assignments or projects when due? Are they well organized. neat. b) Bring in examples from the workplace of printed material dealing with the topic at hand. and conclusion within the five minute time allotment Module Outcomes Timely submission of assigned summary paper that demonstrates an integration of academic content. personal experience.Issues in Management Adult Learner’s Guide GRADING POINT BREAKDOWN Class Participation Criterion Is the adult learner engaged in classroom discussions? Does the adult learner demonstrate an ability to handle assigned material with a degree of proficiency? (e. critique. and reflecting a familiarity with the assigned material) Participation evaluated according to quality. of participation. demonstrating the type of questions and issues consistently. typed and to the point? Do they demonstrate knowledge of content material? Presentation Criterion Did the adult learner demonstrate a clear understanding of the topic presented? Was the presentation clearly articulated and within the time limits specified? Did the adult learner accurately field questions about the presentation material? Points 15 • • • • Final Summary Paper Criterion Did the adult learner successfully complete and submit the class project or summary paper? Point Total: Module Outcomes One five-minute presentation per adult learner per module Deliver a five-minute presentation centering around the key concepts of an assigned article or portion of the text Demonstrate group facilitation and speaking skills Express a summary.. • • Points 40 • 100 Page 6 © 2004 .

WEEK TWO 1. 74. 135-141.” p. 51-69. Read Management. section titled “The Role of Goals and Plans in Planning.” 2. 2. WEEK THREE 1. Read Management. 160-169. Read Management of Organizational Behavior. section titled “HerseyBlanchard Tri-Dimensional Leader Effectiveness Model. Read Management. read Chapters 8 and 12. Read in Adult Learner’s Guide. Page 7 © 2004 . review “Quick Test — Strategic Decisions. Chapter 5. Chapter 17. Bring both completed to class. Complete the Situational Leadership Leader Behavioral Analysis (LBAII) Self. 3. Turn in your Summary Paper for the previous module. and Leader Behavioral Analysis II (LBAII) Other. Chapter 6. 117-121. Chapter 16. answer Question #3 in “Thinking About Management Issues. 3. read Management. “SWOT Analysis” and “EOC: A Case Study and Experiential Exercise".” pp. Read Management of Organizational Behavior. 3. do a SWOT Analysis of EOC.. Chapter 3. and Chapter 7. +MBO” pp. sections titled “The Organization’s Culture” and “The Environment.Issues in Management Adult Learner’s Guide ADULT LEARNER ASSIGNMENTS WEEK ONE 1. 2.” pp. sections titled “Integration of Goals and Effectiveness” and “Participation and Effectiveness.” pp. Chapters 8 and 10. Do a personal SWOT Analysis as outlined in Management on page 186.

" pp. Read “Quality Management: A Brief Chronology. 2. Service Center." pp." pp.” p. “Negotiating. 190-194 iv. "Benchmarking. "The Paradox of Diversity." pp." Exhibit 2. 301-302 vi. Review Chapter 8 of Management. "The Challenge of Managing Diverse Teams. 263 v.” by Ted Farcasin. p." p. Read Management of Organizational Behavior. 202-203. Chapter 18. "Developing Employee Potential: The Bottom Line of Diversity. 58 iii. 210-211 v. 43-44 ii." p. 4. 2. 323 vii. Read “Negotiating Via Ultimatum” in Adult Learner’s Guide. Read Management. 126-138. 43 iii. Chapter 6. "Workforce Diversity. 3.-11." in the Adult Learner’s Guide. 486. read Chapter 18 section titled “Information Controls.Issues in Management Adult Learner’s Guide WEEK FOUR 1. analyze “Case Application: Niku Corporation.” pp.” pp. in the Adult Learner’s Guide. 410 Read "Case Study: H. "The Value of Diversity in Decision Making. WEEK FIVE 1. "Quality Initiatives and Goals. 472-475. 2. "Communication Styles of Men and Women. 3. "Quality Management. 531-532. 149 iv. and answer the three discussion questions for the case." pp. 39 ii. Read or view in Management: i. 502-506 Read about diversity issues in Management: i. Read Management. Page 8 © 2004 ." p. "Business Level Strategies. including "Case Application: Joe Boxer Corporation." p." p. pp." p." pp. "Creating an Inclusive Workplace Culture." p. "Managing Work Force Diversity. "What is Quality Managment. 3. 374 viii.

Issues in Management Adult Learner’s Guide LOGISTICS CHART Hour 1 Week 1 Overview Motivational Theories Week 2 Strategic Planning Week 3 Week 4 Leadership Control and Self/Behavioral Assessment Week 5 Quality Management Chronology Group Presentations 2 Motivational Theories  SWOT  Discussion  Control   3 MBO Context Video Negotiations Experiential Exercise Organizational Negotiating Total Quality Management  4 Structure and Design Leadership Video Strategies Work Force Diversity Summarizing and Journal Entry Journal Entry Journal Entry Journal Entry Journal Entry Page 9 © 2004 .

Issues in Management Adult Learner’s Guide APPENDIX Page 10 © 2004 .

use a separate worksheet for each. It is important that you identify the main concepts and principles within your readings. Then answer the following questions. As you review it. review the assigned reading matter. First.Issues in Management Adult Learner’s Guide THE FIVE AREAS OF MANAGEMENT MOTIVATIONAL THEORY WORKSHEET You and your team have been assigned the responsibility of mastering a set of readings in order to deliver a fourteen-minute oral report. (If two authors are reviewed. Which ideas impressed you the most? Which ideas could be used in your own work situation? Which idea(s) do you disagree with the most? Page 11 © 2004 . underline (or otherwise note) the ideas that seem important to you.) What were the main themes presented in the reading? List and briefly define the major concepts developed in the reading.

Page 12 © 2004 .Issues in Management Adult Learner’s Guide Why do you disagree? State your reasons briefly.

B questions C. prepare your fourteen-minute report for presentation to the class. Make sure that all the major ideas in your set of readings have been covered and you fully explore the implications of each author’s philosophy. People should ask themselves if their objections are really that important or whether they can live with the ranking of the group. and E questions A. discuss and rank order the items by consensus. Follow these rules for brainstorming: 1. If the answer is “no. In this instance. Page 13 © 2004 . use the last few minutes to write down several good questions for the group you will be questioning. Far-out and crazy ideas are encouraged because these fantasies spark more practical down-to-earth thoughts. 2. then they should move for a consensus. 3. After consensus has been reached. there will be no consensus. The relevance or importance of an item should be discussed after the list is developed. Participants must use compromise as a method of reaching agreement. Group A questions B. 2. Once your presentation is planned.) In preparing for the class discussions. No voting. 4. Use a short period of time and make a list of ideas. Be very careful in using this power. Any one person can veto the rank ordering. There should be no discussion while the group is compiling its list. D questions E. Individual participants should use their MOTIVATIONAL THEORY WORKSHEET notes as a source of ideas. Follow these rules to arrive at consensus: 1.” that they can live with the ranking of the group.Issues in Management Adult Learner’s Guide GROUP REPORT GUIDELINES (Preparation for the discussion of the organizational behavior reading materials. please follow these steps: Prepare to explain the philosophy of the author assigned to your group as was explained in the reading. C questions D. After the list of ideas has been completed.” that they are set against the ranking of the group. Each member should have an active role in the actual presentation. Remember that your group has only fourteen minutes to make a presentation and field a few questions. then they have the veto power and should utilize it. If the answer is “yes. These questions should reveal problems in the authorities’ positions identified by the participants.

396-397 p. 399-400 p. 398-399 p. 403-405 p. 405 Page 14 © 2004 .Issues in Management Adult Learner’s Guide Group assignments are as follows: Group assignments are as follows in Management by Robbins: Group A Group B Group C Group D Group E Three Needs Theory Goal Setting Theory Reinforcement Theory Equity Theory Expectancy Theory p.

D. From these factors (strengths. talent. Ph. Such an outcome may take the form of a “grand strategy” that provides a sense of strategic direction for a firm. Bedeian. 1993). It matches an institution’s internal strengths and weaknesses with its external opportunities and threats. 1992. Farcasin. or ability? Does the firm continually have internal operating problems? Are facilities out of date? Is R & D consistently under financed? Are products or services too limited in their marketability? Are competitors able to easily gain market share? Does the firm have a weak image? Page 15 © 2004 . weaknesses. Managers contend that carefully scrutinizing these factors will lead to the development of a successful and effective organizational strategy.Issues in Management Adult Learner’s Guide SWOT ANALYSIS Ted W. threats) the acronym SWOT is derived. Engaging in a SWOT analysis requires attention to the following questions: Analysis of Internal Resources Strengths • • • • • • • • • Does the firm have appropriate financial resources? Does the firm have a management that achieves objectives? Does the firm have a distinct area of competency? Is it competitive? Is it a market leader? Does the firm have a favorable image among consumers? Does it have high quality products or services? Does it have a cost or competitive advantage in any of its markets? Have current functional strategies been successful? Weaknesses • • • • • • • • • • • Does the firm have low quality products or services? Do limited finances preclude changes in strategic direction? Does the firm lack a clear and coherent strategic initiative? Does the firm have unacceptable levels of profitability? Does the firm have questionable management expertise. SWOT analysis is a strategic planning tool that provides managers with a mechanism for formulating an organizational strategy (Certo. opportunities.

diversification. or liquidation. Growth strategies can be further subdivided in terms of concentration. turnaround. or joint venture. or retrenchment. the Gillette Company relegated its Right Guard product line to “hold” status in 1986 and supplied the production unit with only maintenance monies and positioned the product to generate cash for other corporate brands. Each one of these has a specific objective. protect against threats. For example.Issues in Management Adult Learner’s Guide Analysis of the External Environment Opportunities • • • • • • Threats • • • • • • • • • Does the firm face strong competition from other firms? Are new firms or service providers constantly entering the market? Are competitors that have a price/quality advantage introducing new products or services? Has market growth slowed? Have the demands of consumers shifted to other products? Have demographics shifted so as to place the firm or service at a disadvantage? Is the firm vulnerable to business cycles? Will government intervention place the firm or service at a distinct disadvantage? Can vendors place the firm in a difficult financial or production position? Is the firm facing rapid growth in markets? Does the firm have the ability to quickly enter new markets? Are new products or services scheduled for market introduction? Can the firm diversify into related products or services? Are competitors not interested in the firm’s market? Can the firm more effectively reorganize its product or service offerings? Highly effective managers will be able to develop and implement a strategy that utilizes strengths to exploit opportunities. A harvesting strategy tries to minimize current investment in a product line while attempting to maximize cash flow and short-run profits. a concentration strategy seeks to increase the growth of a single product line whereas a diversification strategy shifts a firm’s strategic direction by adding new product lines. a liquidation strategy focuses Page 16 © 2004 . SWOT analysis can lead to the formation of a grand strategy that is developed at the corporate level of the firm and focuses on growth. improvements in growth. Divestiture involves selling off one or more divisions (units or subsidiaries) in a firm or organization with multiple units. and compensate for weaknesses. vertical integration. For example. stability. divestiture. Turnaround strategies attempt to streamline the organization by reducing costs and increasing total revenues. Retrenchment attempts to reverse poororganizational performance and can be further categorized as harvesting. but slow. A stability strategy is used when a firm wants to achieve steady. Finally. horizontal integration.

References Bedeian. (1992).. Boston: Allyn and Bacon. may be used or reproduced in any manner without written permission of the author. Once a strategic direction has been identified. Management. W. T. 5th ed. Arthur G. Rochester. Note: As you are thinking about SWOT analysis. Certo. service. (1993). or other articles written by this author for this module. Modern Management: Quality..Issues in Management Adult Learner’s Guide on the termination of the firm by selling off all assets (Bedeian. staffing. No part of this article. you may recall from an earlier module how similar some of the thinking is to force-field analysis. Roberts Wesleyan College. (1993). manufacturing. This may help you in conceptualizing the overall dynamics of SWOT.g. New York: The Dryden Press. Curriculum Center. Ethics. and the Global Environment. Farcasin. 3rd ed. marketing. 1993). New York. Page 17 © 2004 . and delivery) to make sure that all units are moving towards the achievement of the institutional wide corporate strategy. Samuel C. except in the case of brief quotations embodied in the articles. it then becomes necessary for management to examine business and functional level strategies of the firm (e. product distribution.

Adult learners are to read carefully the following case.75 percent over the next six years. Market share is growing but customer service is waning. Ph. the CEO has been concerned about his own health. Make sure they are tightly written. product quality. and not redundant. The case is typical of an actual situation. directly to the point. and the introduction of new product lines by competitors. The mission of the company is to provide state of the art information to health care agencies through publications. innovator in product development. such as the production of videotape presentations that promote behaviors that improve public health and combat socially transmitted diseases. Each adult learner then conducts a SWOT analysis. and effective decision maker. Tapes have been produced in the company’s own studio using 1-inch video formats. have been used by such large health agencies as the National Association of Internists and University Residents (NAIUR) and the President’s Commission on Health Care Delivery (PCHCD). “Eusebius Omnibus Corporation faces dramatic growth that is out of control. For example. and professional personnel. Farcasin. Such a statement should be brief. defection to competitors is viable.D. The Page 18 © 2004 . currently is the market leader with 47 percent of the market. and employs over 150 clerical. Each tape that is made can be reproduced in either 3/4-inch or 1/2-inch format depending on the demands of the consumer. no more than two sentences. The CEO has been with the company since its inception and is regarded as a visionary. This form of information diffusion is expected to grow at an annual rate of 9. threats to market share by increasingly stiff competitors. Eusebius Omnibus Corporation Eusebius Omnibus Corporation (EOC) is a multimillion-dollar information diffusion firm with corporate headquarters in a large midwestern city.000. public speaking programs and videotape productions. competent leader.A CASE STUDY AND EXPERIENTIAL EXERCISE Ted W. He has formulated an executive constellation of three vice presidents who report directly to him. each initially costing $75. sold under the label of Omicron Filmation. person of high moral standards. excellent planner. and functional strategies. and effective training of key personnel necessary to ensure long-run production and distribution of creative products. operates three divisions. He has empowered these VPs to be responsible for the internal operations of the company and to assist him in long-range strategic planning. technical. first develop an overall problem statement that appears to characterize the dilemma confronting this firm. Lately.Issues in Management Adult Learner’s Guide EUSEBIUS OMNIBUS CORPORATION (EOC). each with its own specialization. with names and circumstances modified to guarantee anonymity. The company has been in business for fourteen years. and peers and clients esteem him across the business community. Large government agencies to small community health organizations have utilized EOC’s services. Its video productions. To help you analyze this case. The company owns three studio-quality cameras. business level. jeopardizing clarity of strategic direction.” Recommendations should include a grand strategy with appropriate strategic subdivisions. EOC is known across the industry as having the finest products available in the information diffusion field.

the printing unit will contribute 34. a consortium of new video producers. Moreover. but it would take five years before it would be competitive with Tape heads. this business unit generates 69 percent of EOC’s total revenue of $11. such as the US Department of Health Services. Recently. has indicated that printing and publications account for 20 percent of total corporate profits. net profits on public speaking engagements average 29 percent. due to debt-free operations.500.75 Page 19 © 2004 . However.573. these new competitors annually produce one production a year for a worthy charity. and these new competitors only lease studio space as opposed to owning it as does EOC. estimates that the unit could restructure. VP of Operations for Omicron. EOC would have to restructure Omicron substantially to take advantage of this new equipment. VP of Operations has submitted a five-year strategic plan to the CEO. There are three strategic scenarios for this unit.5 percent net return on profits. Savings from this production are passed on to consumers causing long-standing EOC clients to start contracting with this new enterprise. Herman I. if the economy picks up and averages 5 percent growth in GDP over the next five years. For example. her unit must begin to develop new product lines and diversify. Many of these programs have been successful for a large number of clients.” has purchased advanced technology that allows it to produce the same high quality videos as the Omicron for 57 percent less in average cost expenditures. Programs are designed by a staff of professional. high productivity.7 percent to total profits.43 percent per year. called “Tape heads Incorporated. if the economy averages 3 percent growth over the next five years. and quality products that meet the needs of a few large consumers. Finally. This expenditure includes the use of a five-person production crew who can follow a production from the beginning stages of script writing to the final point of product distribution. and growth forecasts have stabilized at 3. the unit will contribute 22 percent to total revenues. technical and clerical personnel that comprises 27 percent of EOC’s total personnel and generates 11 percent of the company’s total profits. The Public Speaking unit of EOC provides seminars to health agencies on topics that meet their internal demands. This does not generate any revenue but does give them a tax-write off and substantially improves their image among clients and other members of the community. Omicron has to sell ten tapes at a cost of $550 each to break even or negotiate contracts with clients to produce products that they want but at a higher cost to the end user. the same product can be produced by the consortium with a two-person crew as opposed to five. Finally. Susan H. little turnover in technical or clerical staff. There are no new competitors in this market. On the average. his current customers have acknowledged that his products are the best in the industry and cannot be matched in cost or quality by any other supplier. thus. while the VP also reported that printing is a volatile industry and fluctuates with business cycles. suggesting that while there will always be a market for public speaking. Omicron has to run ten crews a week. One.. 48 out of 52 weeks a year to generate an annual 21 percent return on investment and a 7. Net operating profits for the unit are at an all time high of 43 percent.. if the economy averages only 1. The unit has long-term contracts with such agencies that will remain viable for at least five years. Fred B.Issues in Management Adult Learner’s Guide average cost of producing a single new video is $5.. EOC does not have such a policy. Distributing information through the printed media is EOC’s oldest and most profitable business unit. Two. if it is to remain a profitable contributor to EOC’s financial well-being.000 dollars and employs 48 percent of EOC’s personnel. VP of Operations for the unit.

The advantage of printed media is that they can be easily distributed to all members of an organization quickly and cheaply. he has heard of such offers in the past. Potential needs of new clients are shifting from print media to other forms of information diffusion. The trust and responsiveness to client needs that he has established over the years bring in a higher percentage of dollars to the unit than planned marketing efforts. One competitor.83 percent to total revenues. without guarantees of the same job but with equivalent wages. In the proposed buyout. and the maintenance contract is $3. has found a vendor that can provide it with holographic images of the same material provided by EOC.4 hours. Overnight mailings facilitate “on demand” delivery of products. a recycler of medical waste products..500 per year. This form of information dissemination is more expensive than printed documents. A few moments ago. Moreover. we have new products on the horizons in diverse markets. Using the following materials. or lucrative retirement packages. current employees would be offered either positions in the new organization. EOC’s printing unit does offer clients sliding price scales. The CEO has filed these inquiries. He strategizes well and has an excellent ability to design systems that motivate. the VP for this unit is regarded as the most effective manager at EOC. No other competitor in the industry can match this strategy or the unparalleled product and service offered by the printing unit of EOC.” Furthermore. averaging only 93. we’re financially solvent. . and customers. He is highly respected by the CEO. and bring out the best in productivity and with the fewest errors from employees. Halo graphics have the advantage of being interactive and significantly more enjoyable to view than publications. due to literacy problems. the unit will contribute only 9. the CEO received a phone call from a group of New York City investors.’ that chest pain is still bothering me. an outright buyout offer of $23. conduct a SWOT analysis of EOC. Clients are gaining bargaining power with this unit due to the numerous alternatives coming on the market that can replace print media. but costs are declining as the technology is perfected. and the maintenance contract is $275 per year. subordinates. the greater the volume the cheaper it is for customers to purchase printed materials.Issues in Management Adult Learner’s Guide percent growth over the next five years.700. as well as his peers. Page 20 © 2004 . Printing technology has a MTBR average of 25 months. The major disadvantage of halo graphics is their low Mean Time Between Repairs (MTBR).. ‘ouch. Formulate strategic recommendations that are consistent with the case and your problem statement. most of them have been attempts to buy off one of the business units. Be prepared to discuss your results and hand in your work. They played their trump card immediately. satisfy. The CEO’s intuitive response was: “Visionaries die hard.000 for EOC.

Problem Statement: Strengths: Weaknesses: Page 21 © 2004 . E. Corp.Issues in Management Adult Learner’s Guide EOC WORKSHEET 1 FR: (Adult Learner’s Name)_______________________________________ TO: CEO.O.

Issues in Management Adult Learner’s Guide EOC .WORKSHEET 2 Opportunities: Threats: Page 22 © 2004 .

4.WORKSHEET 3 Strategic Recommendations (one page only) 1. 5. Page 23 © 2004 .Issues in Management Adult Learner’s Guide EOC . 6. 3. 2.

Yet. had become the largest supplier of growth hormones for chickens in the country. There is potential for dramatic growth with risk. Unfortunately. Identify an acquisition that has a minor portion of the market but does not generate enough revenue on its own to expand. social concerns portend an elimination of demand for chickens raised on growth hormones. you have been able to expand your operations by entering international markets. has been able to finance its own operations. Page 24 © 2004 . Harold’s Growth Hormones. and reinvest the money back into that operation. 3.D. test your talents on the following case. through numerous acquisitions. 4. Farcasin. This operation had a 31 percent net profit margin last year. Over the next five years. What would be your strategic decision? Choose only one. Ph. and. Justify your selection with one or two sentences. The majority of them are losing money and a few have captured a small segment of their market. Recently. simultaneously.Issues in Management Adult Learner’s Guide QUICK-TEST: STRATEGIC DECISIONS Ted W. Harold’s still generates excess cash and has not yet felt declining demand for its product. You have ten minutes to respond and discuss with facilitator. Your current balance sheet reveals that you have excess cash. This acknowledges that the unit is a “winner” and can continue to sell its product on broader markets. 1. Maintain Harold’s current status. Divest your organization of Harold’s and use the money to diversify into other industries. usually less than 2 percent. During the 1980s. An annual review of your company’s financial statements indicated that one of your purchases. your firm became the nation’s largest conglomerate in the wholesale chicken distribution business. and has substantially contributed to the overall cash position of the parent organization. 2. other acquisitions that looked good when purchased have laid an egg. Reinvest the excess cash into an acquisition that is not doing very well and has previously been the recipient of expenditures for capital improvement and personnel. conduct research to discover socially acceptable growth inducing products. Given your strategic planning knowledge.

It appeared the seventeen companies under the Paychex banner were beginning to pull apart and. NY. Ph. 1991 edition. It had six franchises and eleven joint ventures under its corporate shield. all would prosper. Reference Paychex Headlines. It was at this point that Mr. to threaten the existence of the company. He invited all of his franchisees and partners to the Bahamas for discussions. He convinced them. all of which were providing payroll services to other organizations. Commentary and Coverage. Mr. a Rochester. National News Clippings. If they followed this formula and stuck to it.Issues in Management Adult Learner’s Guide NEGOTIATION VIA ULTIMATUM Ted. Forbes magazine selected Paychex as the 80th best small company in the United States out of a ranking of 200. Golisano decided to form a single company. his strategy was to form one company from the many. Question: Why do you suppose the CEO was successful using this type of negotiating strategy? Page 25 © 2004 .D. The president. Tom Golisano (Paychex Headlines) was not sure he had signed contracts for the franchise operations. Farcasin. firm was a loosely structured organization. No date. even though some were initially against the idea. A number of years ago Paychex Corporation. in effect. W. that they could no longer be individual entrepreneurs but must become employees and major shareholders. In its November 11th.

he joined the US War Department. Thus. practitioners. Ph. industry in the US became aware of methods that were designed to improve product quality. In 1931. He further improved some of Shewart’s statistical methods and published some of his findings in available professional journals of that time. From these endeavors. Deming held a doctorate in physics from Yale University. After World War I and into the 1920s. but Deming remained faithful to its original name. This book delineated statistical quality control procedures and became the salient work in this newly discovered field. Shewart published Economic Control of Quality of Manufactured Products. However. Unique to this management philosophy has been a lack of consistency in its application. With the advent of the Great Depression in 1929. 1992). a bevy of devastating economic issues that took precedence over quality control methodologies buffeted industrial manufacturing. Statistical techniques were designed by Shewart to measure variations. technicians. the strategic focus of industry was not on the implementation of methods to improve quality but on the production of “goods” that satisfied consumer demands within certain quality parameters. In the 1920s. 1992). This process later became know as the Deming Cycle. industrial enterprises. It does have its own historicity and can be documented as part of the broader socio-economic development of this country since the late 1920s and early 1930s. it was during this same period that Shewart’s work caught the attention of W. and graphs were developed that displayed results. Shewart designed a quality control process that involved setting product specifications and establishing production and inspection procedures. but out of force of practice and professional desire had become a statistician. made significant contributions to quality control by recognizing the importance of measuring the variability of a product’s dimensions (Sashkin & Kiser. a member of this department. Shewart. it became possible to establish acceptable ranges of tolerance for manufacturing a particular product. or governments. this paper will illumine specific time frames when quality management has gained attention from scholars. where he taught quality control methods to various engineers. Edwards Deming. the Western Electric Corporation created a department to investigate questions pertaining to quality and its effective control. Deming met with Shewart at Bell Labs to grasp. and employees who were concerned with efficiently producing quality products for the war effort (Certo. From these measurements. In the mid 1930s to early 1940s. The focus on quality management is not a recent phenomenon in the United States. Variations in product dimensions beyond these acceptable ranges could be measured and their causes identified. Manufacturing or production changes could then be developed that would eliminate unacceptable variations and bring the product back into acceptable ranges of numerical tolerance.D. One of his primary objectives was to disseminate his rapidly expanding statistical quality control knowledge base. Walter A. This process became know as the Shewart Cycle. while at Bell Laboratories in New Jersey. Farcasin.Issues in Management Adult Learner’s Guide QUALITY MANAGEMENT: A BRIEF CHRONOLOGY Ted W. and improve techniques related to statistical quality control. Deming reformulated the Shewart Cycle in quality terms that involved plan-do-check-act procedures. refine. In 1941. Yet. He demonstrated techniques for random sampling of products and how to display Page 26 © 2004 .

To further his quality concepts.Issues in Management Adult Learner’s Guide variability of product attributes on control charts. 1991). and some were classified as military secrets. his host was the presiding chairman of the Japanese Federation of Economic Organizations. Within five years. Managers in the US were essentially concerned with production that met post-war consumer demands and not with quality. It was not until June of 1980 when NBC broadcast the documentary “If Japan Can.. On July 26. who later began applying statistical quality control procedures to their organizations. Deming was virtually an unknown figure in the United States from the end of the Second World War to the l980s. and scientists. a former professor of many of Japan’s business leaders. thus eliminating the need for inspection teams that would identify and fix mistakes at the end of the process. Adopt the new philosophy. Deming’s pitch was that the elimination of statistical variation in the production and delivery of goods and services would systematically lead to outstanding quality in manufacturing. contending that 94% of production errors were the fault of the system and only 6% the fault of the worker.Why Can’t We?” that Deming began to be recognized as someone who could significantly contribute to the revitalization of American industry. Statistical analysis would be used to detect and remedy product defects at the beginning of the manufacturing process. His focus was on the system and not on the worker. His methods proved effective in improving product quality. 1950. During his continued work with Japanese firms throughout the 1950s. and. Eliminate reliance on mass inspection. corporate presidents. Deming wanted to involve Japan’s key industrial leaders in his lecture series.. Japan’s strategic business leaders began attending Deming’s lecture series. In 1951 the Deming Prize was created by the Japanese Union of Scientists and Engineers (JUSE) after Deming began donating money from his lectures to JUSE. It bestowed upon the firm that best achieves quality outcomes. After the war and declassification of his ideas. upon Ishikawa’s request. Ichiro Ishikawa. he addressed members of the Industry Club of Japan. These principles were set forth in his book Out of the Crisis and can be stated as follows: (1) (2) (3) (4) Formulate constancy of purpose for improvement of product and service. Cease the practice of awarding business on price tag alone. Mr. Unknown to Deming. Deming developed his fourteen points of quality management. if it would be possible to speak to the country’s key corporate executives. Deming worked as a statistician for the US Census Bureau and was attached to the occupation forces of General Douglas MacArthur stationed in Japan. In effect. Industrial firms engaged in vigorous competition to determine which company could comprehensively and effectively implement quality control applications. Results were positive. His mission was to lecture Japanese industrialists and entrepreneurs on the positive long-term outcomes they would achieve by emphasizing quality throughout their firms. At the end of World War II. This club included some of Japan’s best engineers. Deming soon realized that his previous undertakings had had no lasting impact on American management. Their objective was to bolster and enliven Japan’s post-war economy. He asked his Japanese host. and applications spread across Japanese industries throughout the 1950s. such companies as Matsushita Electric Corporation and Mitsubishi Heavy Industries were active disciples of his methods (Yates. Page 27 © 2004 .

industrial leaders in the United States would not begin to embrace quality control procedures until the mid 1980s. 1992:22). Aware of this shortcoming. Genichi Taguchi. His approach was similar to that of his American predecessor. Dr. Eliminate slogans. the Emperor of Japan awarded him the Order of the Sacred Treasure.no permanent impact has even been accomplished in quality control without [the] understanding and nurture of top management” (Sashkin and Kiser. Eliminate numerical quotas. He contended that quality was of central concern to all employees and not just to Page 28 © 2004 . However. exhortations. in which he illuminated his concerns. across the Pacific. Joseph Juran. an employee of Nippon Telephone and Telegraph Company in Japan. In 1949. Institute a vigorous program of education and improvement.. involving planning as well as production processes. one of the country’s most revered honors. Armand V. delivering lectures to Japanese industrial leaders on issues related to quality control. While Japanese managers accepted these principles readily. Institute leadership. Feigenbaum was the leading quality-control expert at General Electric. In 1979. Acknowledging his contributions. Juran emphasized that quality should be pervasive. Quality Evaluations in Japan. he referred to his efforts as quality engineering (Mondy & Premeaux. His primary focus was on the design stage of quality processes. Juran later established his own institute with the mission of taking the message of quality control to public and private organizations around the world. In that same year he had published his most significant book titled Quality Control Handbook. In contrast. utilized statistical control techniques to improve corporate productivity. In the 1940s. a contemporary of Deming who had worked with Shewart at Western Electric and Bell Laboratories. Deming later wrote that “. Taguchi contended that quality must be designed into each product manufactured by an organization. Break down barriers between staff areas. innovation. Institute training (on how to do the job). and continuous improvement (Mondy & Premeaux. Take action to accomplish the transformation. 1993). He advanced ideas suggesting that statistics was a viable knowledge base for quality improvement. 1993).Issues in Management Adult Learner’s Guide (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) Constantly and forever improve the system of production and service. Recognizing the significance of top-level management in the implementation of a quality culture.. Clear tactics were developed to vigorously analyze manufacturing processes in an effort to find and eliminate mistakes that reduce quality. Remove barriers to pride in workmanship. Drive out fear. and targets for the workforce. the impact of his teachings never enjoyed the level of success in other countries as it did in Japan. Juran devoted special attention to the design of quality management processes that focused on specific methods to integrate customer demands with product development. satisfy consumer demands. he published an important work. arrived in Japan in 1951. Dr. American firms were not uniformly moving in the direction of adopting quality management processes. and foster teamwork.

an American firm. American industry experienced a disastrous loss in worldwide market share in durable goods. He further developed his product-improvement ideas in a book written for McGraw-Hill in 1961.Issues in Management Adult Learner’s Guide managers (Massie & Douglas.. stereo gear. True quality standards should equate to zero defects. techniques. Feigenbaum first used the term “total quality control” in his article “Total Quality Control. Sashkin and Kiser (1992) have defined TQM as follows: TQM means that the organization’s culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools. It granted employees the capacity for self-correction of their own errors. automobiles. televisions. and achieving quality requires statistical controls that prevent defects and the necessity of inspection. his conceptualization of quality control was effectively embraced in Japan prior to dramatic acceptance in the United States. Involvement of employees in the decision-making process was crucial to this perspective and gave impetus to the creation of Total Quality Control (TQC). computer chips. l993). tactics or Page 29 © 2004 . TQC closely resembles what we currently call total quality management. titled Total Quality Control. His energies led to the development of what was to be recognized as Total Quality Management (TQM).. Aware of these systematic losses American management finally began to search for innovative practices that would circumvent such outcomes. medical and optical equipment.” Regardless of definition. and tires. Bedeian (1993) succinctly defines TQM as “. Interestingly. 1992). the chance to report inferior quality in materials or product craftsmanship. resulting in high quality products and services. A member of one of these teams was Philip Crosby. The company used the concept of teams to ensure quality in the design and manufacture of this product. TQC encouraged the utilization of quality circles to solve problems and implement solutions. In 1979. Crosby published Quality is Free. and Europe. he has enjoyed success as a quality consultant in the United States. In 1985. Japan. who became one of America’s premier quality management experts. As American companies began to implement quality control techniques in the mid 1980s. and promoted training. employees at all levels of the organization have the continuous responsibility of seeking alternative strategies. In 1960. Crosby contended that poor quality would cost a manufacturing firm approximately 25 percent of sales in terms of warranty payments and engineering defects and 40 percent of the operating costs of a service company. It was the responsibility of all personnel to ensure that high standards of product quality were attained. David Packard chaired a special commission to study the administration and management of national defense. US manufactures had more than a 50 percent loss in markets to foreign-international companies in such product lines as athletic shoes. processes were developed that encouraged “error-free” production activities (Mondy & Premeaux. Since then. appeared to adopt successful quality management procedures in the building of a defect-free Pershing missile. and training. This involves the continuous improvement of organizational processes.” published in the 1956 November/December edition of the Harvard Business Review. Martin Corporation.an approach to quality improvement that signifies long-term success through customer satisfaction. robotics. From the early 1960s to 1990. quality necessitates conformance to requirements. cameras.

In 1988. Motorola. won in the manufacturing category. information and analysis. knowledge of requirements for quality and excellence. created the Malcolm Baldrige National Quality Award. was Florida Power and Light. Such activities focus on breakthrough planning that imbues TQM with a sense of strategic vision. To bring national attention to this type of management philosophy. In this same year. Globe Metallurgical Incorporated.Issues in Management Adult Learner’s Guide procedures that improve current operating processes. Technical advances in quality management may unveil computerized processes that have the capacity to identify flaws in manufacturing systems before they occur and make appropriate adjustments in production sequences that eliminate potential process or product defects. the sharing of data on successful quality strategies and the benefits derived from implementation of these strategies (1993 Award Criteria. Page 30 © 2004 . Westinghouse. Currently. daily management demonstrating what must be done. the Malcolm Baldrige National Quality Award is the prize of choice. The award intends to promote the importance of quality as central to competitiveness. 1993). former Secretary of Defense Frank Carlucci made TQM the central management policy of the Department of Defense. in the United States. service. management of process quality. A better process will inevitably result in an improved product or service. Malcolm Baldrige National Quality Award).” with some scholars referring to it as company-wide quality (CWQ) (Certo. planning. Moving into the decade of the 90s. strategic quality planning. and implementation of continuous improvement strategies that result in quality products or services that exceed client demands. the US Congress on August 20. Criteria for winning this prize include leadership. TQM has finally garnered advocacy across American industry and service sector firms. Current methodologies focus not only on statistical process controls but also on the utilization of management functions that broaden the scope of TQM. Motorola. and small business. In 1992. and Zytec Corporation of Eden Prairie. Federal Express Corporation. 1993). Such institutions as Oregon State University. JUSE initiated a series of English language lectures on quality control management to such organizations as Dow Chemical. Cadillac Motor Division. TQM will remain a major force in revitalizing American industrial and servicesector firms. The unfolding dynamics of TQM are even influencing its “nameplate. In 1989. and customer focus and satisfaction. Marlow Industries. AT&T Universal Card Services and the Ritz-Carlton Hotel Company won in the service category. IBM. or outside of Japan. Minnesota have embraced the TQM philosophy and procedures. The award is given to “for profit” organizations in three categories: manufacturing. 1987. and the winner in the small business category was Granite Rock Company of Watsonville. Volvo. the Deming Prize was extended to the United States. and the first company to win it in this country. AT&T Network Systems Group and Texas Instruments Inc. measured. California. and controlled to meet customer expectations. It provides a systematic process for company-wide participation in the design. that for the immediate future. quality and operational results. It seems then. and an overarching sensitivity to customer demands (Mondy and Pemeaux. and Xerox Corporation. cross-functional management employing personnel or teams across divisions to achieve objectives. human resource development and management.

Massie. New York: The Dryden Press. and Skills. R. (1993). 525-535. (1993). 4-35. Premeaux. Ronald E. Practices. Seabrook. Wayne and Shane R. pp. and John Douglas. Marshall and Kenneth J. pp. Page 31 © 2004 . 3rd Ed. 5th Ed. pp. 5th Ed.Issues in Management Adult Learner’s Guide References Bedeian. Arthur G. Total Quality Management. presented by Irwin Publishing. (1992). Sashkin. p. Boston: Allyn and Bacon. 525-535. 1991. and the Global Environment. “Japan’s Winning Formula. 1993 Award Criteria. 672. 300-303. pp. Certo. 36-38. Samuel C. pp. Yates. Ethics. Modern Management: Quality. (1992). Managing: A Contemporary Introduction. Mondy. MD. Kiser. Management: Concepts. Englewood Cliffs: Prentice Hall. Boston: Allyn and Bacon. Management.” In Chicago Tribune. Malcolm Baldrige National Quality Award. 6th Ed. Quality Series November. (1992). Joseph L. Ducochon Press.

1 What are some of the management lessons that can be learned from this chronology? 2 What is the role of leadership in TQM? Page 32 © 2004 .Issues in Management Adult Learner’s Guide QUESTIONS – CHR CHRONOLOGY OF TQM Adult Learner’s Name_______________________________________ Write a brief answer to each question (3 to 4 sentences). Responses will be discussed in class and collected by the facilitator.

Page 33 © 2004 . do you think TQM is opposed to MBO? Does TQM embrace either Theory X or Y.Issues in Management Adult Learner’s Guide TQM Questions continued. Recalling the MBO readings (article and text) and McGregor’s Theory X & Y. Are there any implicit or explicit assumptions of TQM that would make it difficult for all firms or service agencies to implement it in the same way? 4. 3.

In the April 18. a survey of 500 American companies found that only one third of them saw TQM as significantly contributing to their competitiveness.Issues in Management Adult Learner’s Guide 5. Why? 6. What is your forecast for TQM? Page 34 © 2004 . 1992 edition of The Economist.

T. the chief administrator and Y. including two part-time physicians who donate their time. the only person to interview her. The total budget for fiscal year l994/95 is $327. or pilfering of drugs. disclaims any discrimination. a person of Asian-Pacific descent) for another administrative slot. The director of this agency is Ms. the Department of Labor found otherwise and awarded the woman $183.Issues in Management Adult Learner’s Guide CASE STUDY: H. all of whom are suffering from some type of malady that will cause them to succumb within the next two years..R.R. Farcasin.’s immediate subordinate. If such monies were to be paid out.R.R. The staff is unique in composition in that it is comprised entirely of minorities. There is a general feeling among care providers that the administrators do not care for them. all of these people appear to be morally responsible. Ph. S. Communication is strained between groups. The agency is funded by contributions from donors and other large nonprofit agencies. The health care providers consist of three Hispanics. He is arrogant toward his three subordinate administrators and has not given any of them a raise in two years... and skills. a young woman filed a discrimination suit against HSC. Y. Y. The agency has two problems that threaten its existence. H. Payment is pending. H. and they do not trust them. The remaining care providers feel that other groups on their same professional level are stupid and lack culture. The physicians believe the medical staff personnel are incompetent. there have been no incidents of sexual harassment. Some time ago. there are twenty-seven clients living at the facility.D. did hire another candidate (Ms.R. Mr.T. She claimed she was discriminated against during the hiring process because she was a woman. and people are isolating themselves.000. Ms. There is a waiting list of 230 applicants who would like to spend their final days in this facility that has an excellent reputation for compassionate care. H. social work. Y. energies. Interestingly. HSC would be forced to close down immediately. long-winded administrator who is unwilling to acknowledge problems and tends to rationalize away all difficulties. is a pleasant. but administrative and personnel issues are devastating. two Pacific Islanders. has a staff of four administrators and eleven health care providers. four American Indians. However. impervious to her efforts. HSC’s mission is to provide the finest in compassionate care to the dying. Care is superb. who is deeply committed to the agency and spends many extra hours trying to get things done. SERVICE CENTER Ted W. but who finds Mr. immoral activity. Service Center (HSC) is a nonprofit home and health care facility for retirees who are suffering from terminal illnesses.R. Page 35 © 2004 . She has been with the agency for thirteen months. They eagerly await your recommendations.. and two African American physicians (one male and one female). S. Reports that are required by law and funding agencies are not being produced. Y. The Board and Y.000 in damages. Ms. and media volunteers. neither do they appreciate their professional expertise. who reports to a governing board of medical. and she is the fourth director to hold that position since HSC opened two years ago. Currently. have agreed to hire your management consulting team to solve these problems. This is especially frustrating to Ms.

Issues in Management Adult Learner’s Guide Take some notes on this case that would help you solve these problems in class when participating on a management consulting team. Case Notes: Page 36 © 2004 . Feel free to draw upon knowledge you have gained from your strategic planning and leadership studies.

MS 8/23/01 Page 37 © 2004 .Issues in Management Adult Learner’s Guide Recommendations for HSC Case --Complete in Class.