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Cases Study

Organizational behaviors (University of Economics Ho Chi Minh City)

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Court Cases

Case 1.1: Drexler’s World Famous Bar-B-Que

Q1: What role do values play in how Drexler’s Bar-B-Que interacts with its neighbors and customers?

A1: Mrs. Scott’s values of honesty, hard work, and treating people fairly and with respect play into
how Drexler’s interacts with its neighborhood and customers. Both new and long-time customers
are given equal treatment and same amount of care. It also has lead to a connection with
community. The community has benefited from Drexler’s involvement with community.

Q2: Is Drexler’s an effective organization? Why?

A2: Drexler’s is an effective organization because it was able to grow and keep clientele. They have
also been able to expand their business. Not only that they have the support of their customers and
the community due to Drexler’s interactions with both.

Q3: Apply the systems model to illustrate how Drexler’s Bar-B-Que operates within its environment.

A3: The Drexler’s Bar-B-Que is able to output time and money into many different community
groups. They also output quality service to their customers. This output translates to a positive
environment, where the community supports the restaurant and where customers are more than
likely to return and recommend the restaurant to other people. This positive environment will then
translate into funding for the restaurant, whether it is through the continuing patronage of
customers or possible donations from the community they invested into. These inputs then turn into
things like quality service and food, which will cause the cycle to repeat itself.

Case 2.1: Organizational Culture

Q1: Assume you are in charge of socializing the newly hired nurses at a local hospital. What steps
would you take to ensure that they understand the hospital’s organizational culture? How would you
help them understand how to manage stress on a daily basis so as to prevent burnout later in their
careers? Explain.

A1: In order to manage the hospital’s organizational culture, I would take a page out of Hopkins
book. I would set up a mentor system that allowed every new comer to have a one-on-one
experience with an experienced employee. That way they not only could experience our culture first
hand, but have the ability to ask questions and clarify on anything that needs clarification. For
burnout, I would probably try to implement discounts at local businesses and places of
entertainment, so that the employees would be able to have a better opportunity to enjoy the
personal life. I would also see about setting up work rallies and dinners to encourage the employees
and make sure that they are well-rested for the job. I would also have their mentors discuss ways
that they have used to deal with stress as well as other possible ways they could deal with the stress
that comes with the workplace.

Q2: Hospital environments are more stressful in nature than the work environments found in many
other organizations. What are some of the unique challenges that hospitals face when attempting to
create a supportive organizational culture that helps employees reduce and manage their stress
levels?

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A2: The job is highly demanding which leaves the employees with little time to deal with their own
personal needs, let alone setting up a system for staff to take care of one another. Staff are often
fighting with chronic sleep deprivation, for example. The sleep deprivation can cause significant
damage to any system that was trying to be set up. The difficulty balancing work and personal life
would also be detrimental in setting up a system that would help support a supportive organizational
culture.

Q3: Think about your university or an organization for which you have worked. Using the
intervention points in Exhibit 2.6, provide examples of how the university or organization attempted
to create a certain type of organizational culture. Was is successful (or unsuccessful) in creating the
desired culture? Explain.

A3: My prior place of employment was somewhat successful at creating the desired culture. Once
they had laid out the new expectations for the employees, many were willing and able to adapt to
the changes. Others were unable to adapt and decided it was best to seek employment elsewhere.
Those that did stay were able to keep up with a lot of the changes in culture, however, there were
some desired changes that didn’t quite come to fruition. However, as the changes were fairly new,
I’m certain that if the employees were given enough time, they would be able to adapt to said
changes.

Case 3.1: Personality Testing Yes or No?

Q1: Is Mark making a good decision to drop the use of personality testing? Why?

A1: I don’t believe that Mark made the right call in dropping the test, however, it wasn’t necessarily
a bad decision. The personality test might have been helpful in determining what kind of worker the
candidates would be as well as how the candidates would fit into the existing work group.

Q2: The better-quality personality tests are difficult to fake. Other than attempting to land the job,
why would a job candidate fake a personality test?

A2: I can’t think of any other reason a job candidate would fake a personality test. The candidate
would benefit nothing from faking a personality test if it wasn’t to try and land the job.

Q3: Could personality testing be used for management decisions other than hiring? Explain.

A3: If it weren’t as controversial as it is, it could possibly be used for promoting people to managerial
positions. Those tests could tell you if the individual had what is necessary to be a manager. Those
tests would also be useful when forming teams of workers. It would help put a team together that
would be able to run smoothly and efficiently.

Case 4.1: The Human Cost Associated with Out Electronic Gadgets

Q1: Think of the initial impressions you formed of Foxconn as you read the case. To what degree did
stereotyping influence your thoughts? How much did additional information about the firm change
your initial impressions?

A1: My initial thoughts were that there might be a problem with the company due to the high
number of suicides and riots that there might have been something wrong with the company and
how it treats its employees. The new information helped bring to light that these problems might

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not necessarily be the companies fault. I also learned that my American standards are different than
what goes on in China. So, although the conditions seem like less than ideal for us, it might be a
preferred for them.

Q2: While the manual labor of assembling electronics is challenging for Foxconn employees the
workers may also force the emotional burden of being away from family and isolation from the
outside world. How might management recognize and help employees constructively cope with
these challenges and emotions?

A2: The company might help the new employees by helping them keep in contact with the friends
and family they left behind. Also offering therapy and counseling might help. Another option would
be to set up mentoring programs so that the new employees can find a place they belong within the
company.

Q3: How has Foxconn engaged in impression management? Have their efforts been successful?

A3: The case didn’t make it seem like Foxconn was attempting to engage in impression management.
The case seemed to focus more on how the company was viewed and how the perception people
had on the company might not be the whole story. The only thing that could even be remotely
considered impression management would be the placement of suicide nets on the factory buildings
and the contracts the employees had to sign that stated that the employee would not attempt
suicide. If that is what is being referred to, then it was not successful. It only made the company look
guiltier. By attempting to solve the problem, they admitted to in fact having a problem. Or at least,
that is what the public would think.

Case 5.1: Comparing Co-Workers against Each Other: Does This Motivate Employees?

Q1: What’s your opinion regarding forced ranking performance appraisals? Do they motivate
employees? Explain.

A1: As stated in the case, forced ranking performance appraisals can work. However, their effects on
employees are not long term and can soon stop working at all. The motivation that the employees
experience can soon be replaced with feelings of fear, anxiety, and distrust for fellow employees.
The constant competition and being aware that if you cannot beat out some of your competition
that you’ll be fired can cause motivation to come to a stand still. It will also stall innovation due to
employees’ fear of failure.

Q2: How would equity theory explain some employees’ negative reactions to forced rankings?
Explain.

A2: The equity theory explains how some employees’ have negative reactions to forced rankings,
because some employees have a strong desire to be treated fairly at work for the work they
accomplish. So, if they perceive that they do the same amount of work as another employee, but are
ranked beneath that employee they might feel like they aren’t being treated fairly for one reason or
another. This can cause hostility between co-workers.

Q3: Based on Chapter 5, if you decided not to use forced rankings at your company, how would you
motivate employees?

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A3: I would probably analyze Herzberg’s two-factor theory and try to use that theory as a guide to
motivate my employees. I would try and cater to all of the needs listed to make my employees as
productive as possible.

Case 6.1: The Hovey and Beard Company Case

Part 1

Q1: Assume that the training period for the new job setup has just begun. What change do you
predict in the level of output of the painters? Increase, decrease, or stay the same? Why?

A1: The new setup seems to have created a job that was limited, uniform, and repetitive. This would
most likely decrease the job output of the painters. The reason the output would decrease is due to
the narrow job range. The lack of range often leads to high levels of job discontent, turnover,
absenteeism, and dissatisfaction (151). The discontentment and dissatisfaction will then have a
negative impact on job performance outcome, since it is one of the factors for job performance
outcomes (145).

Q2: What other predictions regarding the behavior of these painters do you make based upon the
situation described so far?

A2: As stated in the answer above, the lack of range will most likely lead to high levels of job
discontent, turnover, absenteeism, and dissatisfaction (151), which have been observed in other
cases that are similar to this one.

Part 3

Q1: What changes do you now expect in the level of output of the painters? Increase, decrease, or
stay the same? Why?

A1: The changes should increase the level of output of the painters because the job was enriched by
allowing the painters to have some control over resources and personal accountability (153). They
were also able to participate in meetings where direct feedback could be given and a dialogue was
started. Job enrichment can lead to more depth which can lead to more job satisfaction. A higher job
satisfaction will often lead to better job performance outcomes (145).

Q2: What changes do you expect in the feelings of the painters toward their work situations? More
positive, more negative, or no change, why?

A2: I expect the feelings of the painters towards their work situations to increase due to the job
enrichment that had occurred. The job enrichment can lead to higher job satisfaction, as stated in
the paragraph above.

Q3: What other predictions do you make about the behavior of the painters?

A3: I don’t have any other predictions about the behavior of the painters. All of my predictions can
be seen in the answers written above.

Part 4

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Q1: How do you feel about the situation at this point?

A1: This situation is a positive one for both the employees and the company. Both parties are
benefiting from the increase in productivity. The employees get better pay and are working in better
conditions, while the company gets to produce more painted toys for less.

Q2: Suppose that you were the supervisor. What would you expect to happen next? Why?

A2: I would expect the productivity to remain on track and that the workers would be satisfied with
the work since most of their complaints had been responded to positively. This is because I would
expect that the work conditions would remain the same and that enrichment would be sufficient for
them.

Case 8.1: The (Mis)Behavior of Successful CEOs Leads to Their Departures

Q1: To what degree do you believe the behaviors of the featured CEOs constituted “misbehavior”
and that the reactions of the boards were correct?

A1: There are several types of “misbehavior” the book discusses. The type of “misbehavior” this
court case deals with is sexual harassment. The book discusses several types of sexual harassment:
“1. Quid pro quo. This form of sexual harassment occurs when an employee’s compliance with
requests for sexual favors are linked to employment decisions (e.g., promotion or hiring). 2. Hostile
work environment. This sexual harassment occurs when sex-related behavior interferes with an
employee’s work performance or creates an intimidating, hostile, or offensive working environment.
3. Psychological. This sexual harassment occurs when an employee “feels harassed” regardless of
whether or not the sex-related behavior is illegal” (211). Stonecipher didn’t technically break any of
these or any of the company’s policies on sexual harassment (229). Hurd also didn’t violate any of
the sexual harassment policies at his company (229). These two were involved in scandals that
damaged the companies’ reputation, which is why they were fired. Dunn on the other hand, broke
his company’s code of conduct and was fired justly (229). For all three scenarios, the boards’
reactions were justified. Although they weren’t technically disciplining “misbehavior” for two of the
cases, it was important to preserve the company’s image. It is also important to set a precedent for
the employees.

Q2: If you were on a board of directors, what factors would you consider in the selection of a CEO to
limit the potential of this type of misbehavior?

A2: The book talks about different factors that affect organizational misbehavior, such as costs,
mediators, outcomes, and antecedents (207-208). The book also talks about ways to prevent
misbehavior, such as carefully screening job candidates and avoid hiring “risky” applicants, reduce
the possibility of a job, group, or organizational antecedent to trigger misbehavior, and reduce the
possibility of the intention to misbehave (209). So, I would take into consideration the first method
when selecting a future CEO.

Q3: All three of the CEOs in the case were given large severance packages. What message does this
send to the future CEOs of the companies? If you were on the board of directors, would you endorse
such severance packages? What is the cost of not granting a competitive severance package?

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A3: It could show the message that there aren’t any real consequences for bad behavior and that
you can do what you want without real consequences. I would feel that severance packages of those
nature are a necessary evil. I wouldn’t be fond of them, but I would use them to keep the CEOs lips
sealed. If severance packages such as these weren’t granted, company secrets could be leaked to the
public. These secrets could cause even more damage to the company’s reputation or benefit
competing companies.

Case 9.1: Alleviating Employee Stress Through Financial Education

Q1: To what degree do companies have an obligation to provide financial education programs to
alleviate employees’ stress? Explain your answer.

A1: Companies have an obligation to provide financial programs to alleviate employees’ stress. The
reason for that is because the financial stress of a company’s employees negatively impacts the
company. The stress causes employees to become less productive which can lead to losses for the
company and isn’t ideal. Thus, if the company wants to prosper, they need to invest into their
employees by providing financial education programs. (246)

Q2: Referring back to Exhibit 9.2, to what degree do you think an employee who is experiencing a
considerable amount of financial stress might exhibit some of the behavioral and cognitive outcomes
listed in the far-right section of the model?

A2: Employees experiencing a considerable amount of financial stress are likely to experience a lack
of job satisfaction, poor performance, possible turnover, accidents, substance abuse, health care
claims, poor decision making, poor concentration, forgetfulness, and frustration. This is because
financial stress is a large stressor that can cause serious problems. The more financial stress an
employee is under, the more likely he or she will experience the behavioral and cognitive outcomes
listed on the far-right. (235, 242-245)

Q3: Though not extremely expensive, financial education programs still cost organizations money
and resources to organize and administer to employees. In your opinion, why do organizations like
McLeod Health and Therm-O-Disc offer these programs? What returns of investment can these two
organizations expect from having employees who become better at managing their finances?

A3: Companies like McLeod Health and Therm-O-Disc offer these programs because they have
recognized a problem within the company that is causing it to be less productive than it could be and
have set out to solve that problem. The solution they have come up with is to invest into their
employees, so that their employees will in turn be more productive. The rise in productivity will then
lead to greater profits and less turnover and absenteeism for the companies. The court case shows
the kind of returns that McLeod Health received for their investment. They received $6.60 for every
$1 invested into their employees which resulted in a total return of $569,133. The return would
most likely be similar with Therm-O-Disc. The companies should continue to expect these types of
return as long as the employees continue to need and use these programs.

Case 10.1: Electrolux Cleans Up

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Q1: How did Electrolux Chief Executive Straberg break down barriers (and increase communication)
between departments? Why did he do this? Explain.

A1: Electrolux Chief Executive Straberg broke down barriers and increased communication between
departments by having the designers and engineers work together in teams to come up with new
products during brainstorming sessions (299-300). There are five different reasons that people
groups to form. Those reasons are: 1) need satisfaction, 2) proximity, 3) attraction, 4) goals, and 5)
economic benefits (272). The two most likely reasons that Straberg formed these teams was that he
wanted the company to benefit economically as well as work towards a specific goal. Having the
designers and engineers work together helped but costs (300), and the goal for forming the group to
develop new products for the company to sell (300).

Q2: What are the advantages of Electrolux of having individuals from different departments and
functional areas work together on product design? Describe.

A2: The advantages of Electrolux having individuals from different departments and functional areas
work together on product design are that each individual will have a different area of expertise that
allows them to provide input that might not otherwise make it into the design process which allows
the team to remove many different blind spots they would have had otherwise. It also helps cut out
a lot of back and forth between the different departments which can help save money (288). An
example of this was when the designers wanted to make the prototype for Breeze smaller. If
engineer Frucco hadn’t have been present, they designers might have designed the product to be
too small for the 1,500-watt charging station it needed (300). This would have been caught at a later
point, but it would have been a waste of time and money.

Q3: In an era with intense competition and several low-cost products on the market, how can
Electrolux use teamwork and groups to succeed? Describe.

A3: Electrolux can use teamwork and groups to succeed in an era with intense competition and
several low-cost products on the market because the teams he has created can create products that
are eye-catching and easy-to-use. As talked about in the court case, the company has used these
teams to design great products that are able to grab the eyes of potential customers, as well as
make these products desirable by being simple for the ever day individual to use. These teams have
also been innovative in discovering what the public wants by coming up with new research methods.
(299-301)

Case 11.1: Conflict at Walt Disney Company: A Distant Memory?

Q1: How would you describe the conflict between Michael Eisner and the Weinstein brothers, the
two board members (Disney and Gold), and Steve Jobs? Was it functional or dysfunctional?

A: The conflict between Eisner and the Weinstein brothers would most likely be functional because
functional conflicts are conflicts where both groups can benefit (305), and both groups would benefit
no matter what the outcome of the conflict is. The Miramax founders would be paid and Disney
would gain a new film library and the Miramax name (332). However, the conflicts between Eisner
and the two board members and Steve Jobs were dysfunctional because dysfunctional conflicts are
conflicts where the conflict causes harm to the company (305), and these conflicts only caused
damage to the company, internally and externally. The conflicts are damaging the relationship
between Disney and Pixar as well as destroying internal unity (332).

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Q2: Think back to the stages of conflict described in this chapter. Which stage best described the
conflict between Eisner and Jobs? Was it perceived, felt, or manifest?

A: The best way to describe the conflict between Eisner and Jobs would be as manifest conflict. This
is because manifest conflict is the stage of conflict where it is open and can be observed, and the
conflict between Eisner and Jobs was most definitely observable. Eisner had made negative
statements about the Apple company whilst speaking to Congress (332). These statements are what
made the conflict reach the manifest stage.

Q3: Which of the following best describes Michael Eisner’s and Bob Iger’s approaches to resolving
conflict: dominating, problem solving, avoiding, or accommodating? Explain.

A: Eisner had two different approaches to resolving conflict. He was dominating when it came to his
conflicts with Jobs and the Weinstein brothers. He focused solely on his parties needs and ignored
the needs of the other parties. He didn’t want to compromise with the Weinstein brothers or work
things out with Jobs. However, when it came to resolving conflict with the board members Gold and
Disney, it seems that he wanted to avoid the conflict so that he could bide his time in his position as
they were attempting to remove him from it. (332)

Iger had a different approach to resolving conflict. Iger had a more problem-solving approach to
conflict resolution. With the founders of Miramax, he gave them a good settlement payment of $100
million, which solved the conflict as the founders got more money and Disney was able to keep the
Miramax name and their film library. With Jobs, Iger was able to buy Pixar stocks and absorb the
company. He was also able to place Jobs as a board member. Iger was even able to work things out
between board members Gold and Disney. (332)

Q4: To what degree do you think Iger’s calmer and less confrontational approach to running Disney
has helped the company position itself to survive a major economic recession?

A: Iger’s calmer and less confrontational approach to running Disney has helped build relationships
with others instead of tear them down. Due to the gentler nature he was able to keep the Miramax
name and their film library, absorb Pixar, and fix internal relations. These all helped Disney to survive
the major economic recession. For example, while Disney movies such as Bolt weren’t faring well,
Pixar movies such as Wall-E were able to do great. Due to the fact that Pixar had become a part of
Disney, Disney was still able to do well. (332)

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