Case Study 1

Mgmt 3600 – Theories of Management
Case Study: John Higgins
Central Issue:
Why is Mr. Prescott, general manager of Weaver Pharmaceutical of Japan was concerned that his
executive assistant, Mr. Higgins, lost his effectiveness in performing some of his responsibilities
in the American parent company despite the fact that Higgins has a solid identification with the
culture of Japan?
Recommended Course of Action:
Vice presidents like Leonard Prescott should use their management skills (e.g. conceptual,
technical, interpersonal management skills) to understand the conflict and to consider what
action to take regarding the issue of lack of effectiveness of Mr. Higgins. Both should work
together to find out a solution to resolve the problem of their diverse management style.
Basis for Recommendation:
I selected the recommendation because Mr. Prescott believes that his assistant Mr. Higgins has
no control over his duties as an executive assistance representing the American company Weaver
Pharmaceutical. Also, Mr. Prescott thinks that Higgins has lack of making decisions at work,
because Higgins has a tremendous identification with the culture of Japan acting as a typical
Japanese executive. As an executive manager, Mr. Prescott should find a way to solve the issue
and to consider what action to take as soon as possible. Furthermore, both should work together
to find a solution to resolve the problem of their diverse management style.
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Reasonable Alternatives:
1. Mattel should leave the problem of recalling defected toys as is and forget about it. This
is rejected because leaving all the defected toys in the market would put in danger
thousands of children around the world. Also, it is unethical and Mattel would have legal
implications and repercussions s is rejected
because it is unethical, risky and there would be legal implications and
repercussions
from the Chinese government to Google and their users in China.
Mr. Prescott should leave the problem and forget about it. This is rejected because
as a manager, Mr. Prescott should be able to control the situation and must work
together with Higgins to come to an understanding to solve the problem.
2. Mr. Prescott should relocate Mr. Higgins to a different location. This is rejected
because Higgins working relationship with Japanese employees had been
acceptable. Additionally, Higgins became emotionally connected to the people
that works with him and for him.
3. Mr. Prescott must think of firing Mr. Higgins at any price. Mr. Prescott believes
Higgins is losing effectiveness in performing important responsibilities due to his
solid identification with the Japanese people. This option is rejected because
firing Mr. Higgins would be illegal, unethical and would not solve the issue.
Also, Higgins should be retained because of his knowledge and experience.
Significant Factors:
1. Weaver Pharmaceutical
2. Leonard Prescott
3. John Higgins
4. Policies
5. Japanese Culture
6. Attitude
7. Responsibilities and Qualifications
8. Management Style
Discussion:
1 Weaver Pharmaceutical:
The Weaver Pharmaceutical Company was one of the biggest American drug companies that
started its sales activities in Japan around the 1930s. Yamazaki Pharmaceutical was the company
distributor for Weaver’s products in Japan. Some years later, because of the high competition
from local producers both companies decided to work together and established a jointly owned
company to produce a limited line of Weaver’s products to satisfy the Japanese demand. They
had a committee represented from both parent companies to coordinate and manage future
prospects. Mr. Suzuki, vice president of Yamazaki had a limited participation on the jointed
company. The daily operation was managed by Leonard Prescott, vice-president and general
manager and his executive assistant John Higgins.
2 Leonard Prescott:
Leonard Prescott, was the vice-president and manager of Beaver Yamazaki Pharmaceutical
company. When Prescott arrived to Japan, he substituted the former general manager who had
been working in the company for approximately six years. Leonard Prescott had been working
for 25 years at Weaver abroad in countries such as India, Mexico and Philippines. Also, he
worked some years in the international division in the United States. Prescott was pleased with
the challenge of expanding the Japanese operations. Two years later, he was pleased with the
accomplishment in developing a smoothly functionating organization. The only concern he had
at that time, was the attitude of his executive assistant Mr. Higgins, Because Prescott thinks that
Higgins absorbed the Japanese culture and had lost the American point of view.
3 John Higgins:
Mr. Higgins was born in a town in the Midwestern. He completed his high school education,
attended the state university and later, he joined the army. In the Army, he had the opportunity to
attend a training in Japanese language in the Army Language School. After a year of intensive
training, he was assigned as a translator and interpreter in Japan. In Tokyo, Higgins took classes
in Japanese, history and literature. He fell in love with Japan and made several Japanese friends.
He graduated in management with honors and later he joined the company Weaver. Later, once
he finished the training program in Weaver he was assigned back to Japan. It happened a year
before Mr. Prescott’s arrival. Higgins was very content to be back to Japan because it was an
opportunity to improve the wrong image of the “ugly American”.
4 Policies:
The company Weaver had a policy in which every two years, they granted two months of
home leave. That means that employees had paid transportation for them and their family
to go back to the United States or wherever they wanted to go. Several employees were
complaining to Higgins because of a new personnel policy instituted by Prescott. This
policy that was about promotions for employees, which the new policy was to consider
superior’s evaluation of subordinates instead of considering seniority. Employees asked
Higgins to intercede on employees’ behalf and Higgins mentioned that those demand
should be justified.
5 Japanese Culture:
John Higgins fell in love with the culture of Japan and their tradition. He adopted their cultural
and professional behaviors. It was very important fact for Weaver because the Japanese
employees and people in general trusted him, and Weaver could use Higgins for negotiations in
Japan. Higgins became emotionally connected to Japanese people that he married to a Japanese,
moved to a Japanese neighborhood, used the public bath, use a kimono at home, and participated
in weddings and Buddhist funerals. Furthermore, Higgins did not accept to use the policy of
granting two paid months to go home, instead he preferred to travel with his wife to different
parts of Japan. Additionally, Higgins adopted some characteristics of a regular Japanese
executive, in which he spent a lot of time listening employees, personal problems.
6 Attitude:
Prescott was concerned with Higgins’s thinking and attitude up to the point that Higgins had
taken to the Japanese culture losing the American point of view and affecting his administrative
effectiveness. An incident that made Prescott hesitate about Higgins judgment was the dismissal
of one employee who was a manager and lacked leadership and competency in Prescott’s
opinion. The manager did not show interest in improvement over the period of two years.
Higgins objected the dismissal stating that they did not fired an employee before and that the
manager was honest and loyal. Higgins confronted Prescott saying that Higgins did what was
expected of a manager in a Japanese company. Prescott believed that Higgins could be more
effective if he changed his attitude toward Japan.
7 Responsibilities and Qualifications:
John Higgins was the executive assistant of Leonard Prescott in the company Beaver. Higgins
responsibilities were to attend trade meetings, conduct market research, troubleshooting with
customers and doing the daily administration duties. Higgins gave many times advice to both
general managers about several difficult complex administrative problems. Both managers found
that Higgins was very competent and capable for his position. He was an effective and efficient
manager with many talented skills such Japanese language and major in management. In several
occasions many people told Prescott that they envied Prescott for having Higgins a man with
high qualifications.
8 Management Style:
Leonard Prescott a vice president and an executive manager and John Higgins an executive
manager were two excellent managers working at Beaver Pharmaceutical. Both of them are
excellent leaders but they have a diverse management style. Prescott wanted to implement
the U.S. management style that Beaver company has in the Headquarters because that is the
real contributions to the society of Japan which was to introduce new ideas and
innovations. On the other hand, Mr. Higgins was tied up with the culture of Japan because
he admired their culture and fell in love with Japan and their people. The issue was that
Prescott believes that Higgins lack of effectiveness because of his identification with the
Japanese culture. Furthermore, Prescott hesitates every time he want to ask to Higgin’s
opinion because Higgin’s always is against the American policies. Both need to find a way to
solve those issues in order to work together for the sake of the company.
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Mgmt 3600 – Theories of Management

Case Study: John Higgins

Recommended Course of Action:

Basis for Recommendation:

to find a solution to resolve the problem of their diverse management style.

implications and repercussions s is rejected

because it is unethical, risky and there would be legal implications and

from the Chinese government to Google and their users in China.

together with Higgins to come to an understanding to solve the problem.

because Higgins working relationship with Japanese employees had been

acceptable. Additionally, Higgins became emotionally connected to the people

that works with him and for him.

Higgins is losing effectiveness in performing important responsibilities due to his

Also, Higgins should be retained because of his knowledge and experience.

7. Responsibilities and Qualifications

manager and his executive assistant John Higgins.

accomplishment in developing a smoothly functionating organization. The only concern he had

opportunity to improve the wrong image of the “ugly American”.

superior’s evaluation of subordinates instead of considering seniority. Employees asked

parts of Japan. Additionally, Higgins adopted some characteristics of a regular Japanese

executive, in which he spent a lot of time listening employees, personal problems.

effective if he changed his attitude toward Japan.

7 Responsibilities and Qualifications:

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