52 Pa r t 1 • Introduction
Practicing the skill
After spending your first three years after college graduation
as a freelance graphic designer, you’re looking at pursuing
a job as an account executive at a graphic design firm. You
feel that the scope of assignments and potential for technical
training far exceed what you’d be able to do on your own, and
Speedy Car Wash Services, Inc.
To: Michelle Bradley, Employee Care Manager
From: Alex Bilyeu, President
Re: Creating a Fun Workplace
Michelle, I saw an article the other day explaining the results of
a survey that said only 8 percent of employers use fun to reduce
employee stress at work. That same article said that research
has shown that people who have fun at work are more cre-
ative, more productive, work better with others, and call in sick
less often. I’m sold! So how and where do we start? Get me a
CasE applICatIon # 1
Getting Back on Target
Y ou could say the tipping point for Target Corp. was the
massive credit-card hack in November.
• The biggest retail breach in U.S. history.
• Some 110 million customer records compromised.41
Even before this major fiasco, however, things were not
good at Target, the nation’s second-largest retailer. The company
had lost its way under the leadership of former CEO Gregg
Steinhafel. Target, a superb marketing machine, had always
been viewed as hip and “fun, fresh, and energetic.”42 But that
wasn’t who Steinhafel was. As the former chief financial officer,
Steinhafel’s skills, personality, and demeanor set a tone that was
numbers-driven, not people-driven.
The culture he fostered at Target
was one oriented around rigid per-
Bull’s-eye—Target’s Culture
formance measures. Creativity and
quirkiness (remember the fun Target ads with the company’s
mascot dog) were no longer rewarded or encouraged. Instead,
company buyers were less willing to take risks on the newest and
most unique merchandise items, product vendors were pressured
on costs, and things that used to make the company one of the
you’re looking to expand your skills and meet a brand-new set
of challenges. However, you want to make sure you “fit” into
the organization where you’re going to be spending more than
eight hours every workday. Write a brief paper describing how
you would find a place where you’ll be happy and where your
style and personality will be appreciated.
Experiential Exercise
bulleted list of ideas on how we can create a workplace here at
Speedy that’s both fun and yet still focused on work. I’m sure
you’ll have to do some research on this. And have fun with it!
This fictionalized company and message were created for educational
purposes only, and are not meant to reflect positively or negatively on man-
agement practices by any company that may share this name.
most exciting merchandisers were downplayed or ignored. For
example, a plan to use mannequins in stores for the first time
ever stalled after months of testing and review.43 Then came
the data breach, which affected both employee and customer
morale. The workplace culture at the company’s Minneapolis
headquarters, already struggling, deteriorated even further.
In early May 2014, an anonymous mid-level employee
at headquarters let loose a rant on Gawker that was aimed
at the company’s leadership (Steinhafel) and the company’s
future.44 The employee rant also described a culture that was
very insular and resistant to change.45 Target’s chief market-
ing officer, Jeff Jones, responded to the post. Although initially
quite outraged, Jones responded
with honesty and openness. He
acknowledged that a lot of work
needed to be done on the com-
pany’s cultural approach and a new truth created about what
Target is and what it stands for. Not long after, Target’s board
fired Steinhafel. Although the company’s cultural issues and
the massive data breach were partly the reason, there was
other ample evidence that the organization’s performance was

suffering, especially in its Canadian division. But when a com-
pany’s top leader is viewed so negatively, it’s next to impos-
sible for needed changes to take place. Those changes would
have to come from new leadership.
Target Corp.’s new CEO, Brian Cornell, took over in
August 2014. Since his arrival, there appears to have been a
significant shift in culture. A company that was once described
as very insular and resistant to change is now embracing trans-
parency, openness, and change. Cornell has been described as
very enthusiastic about customers and Target’s businesses.46
That type of enthusiasm is contagious for not only headquarter
employees but employees throughout the organization. Other
cultural changes are happening in the expectations for Target’s
employees. Innovation is accelerating, decision making is
being simplified, and old “cultural symbols of unacceptable
behavior”47 are being obliterated. Target executives aren’t
CasE applICatIon # 2
Not Sold Out
C
ompetitors in the movie theater industry had hoped that
they were through the challenges they’d faced during
the economic downturn.49 Ticket sales revenue has
been on a roller coaster: 2011, it fell 4 percent from the previ-
ous year; 2012, it was up 6.1 percent; 2013, it was up, but just
barely, by not even 1 percent; and 2014, it was down about 5
percent. The numbers of people going to see a movie continue
to stall. So, the industry has tried to pump up revenue with high-
profile movies, higher ticket prices, and premium amenities.
The number of movie screens in the United States to-
tals almost 40,000. Together, the four largest movie theater
chains in the United States have a little over 20,100 screens—
and a lot of seats to fill. The
largest, Regal Entertainment
Group (based in Knoxville, What WILL get customers
Tennessee), has almost 7,400 into movie theaters?
screens. AMC Entertainment
(based in Kansas City,
Missouri) has 5,000 screens. The other two major competitors
are Cinemark (based in Plano, Texas—about 5,200 screens)
and Carmike Cinemas (based in Columbus, Georgia—more
than 2,500 screens). The challenge for these companies is get-
ting people to watch movies on all those screens; a decision
that encompasses many factors.
CHAPTER 2 • The M anagem ent Envi ronment 53
underestimating the hard work that’s ahead of them. But by
staying focused on the bull’s-eye—Target’s “guests” (cus-
tomers)—they intend to be united in their return to Target’s
“cheap-chic roots.”48
Discussion Questions
2-14 What role does a CEO play in an organization’s culture? What
role do other leaders/managers play?
2-15 Describe Target’s culture under its previous CEO. Describe
Target’s culture under its current CEO.
2-16 What are the benefits and challenges of social media in
managing organizational culture?
2-17 Which view of management do you see played out here? The
omnipotent or the symbolic? Explain.
2-18 What advice about organizational culture would you give the
new CEO?
One important factor, according to industry analysts, is
the uncertainty over how people want their movies delivered,
which is largely a trade-off between convenience and quality
(or what the experts call fidelity experience). Will consumers
choose convenience over quality and use mobile devices such
as iPads? Will they trade some quality for convenience and
watch at home using streaming services on surround-sound,
flat-screen, high-definition home theater systems? Or will
they go to a movie theater with wide screens, high-quality
sound systems, and the social experience of being with other
moviegoers and enjoy the highest-fidelity experience—even
with the inconveniences? Movie theater managers believe that
mobile devices aren’t much of a
threat, even though they may be
convenient. On the other hand,
home theater systems may be
more of a threat as they’ve
become extremely affordable
and have “acceptable” quality. Although not likely to replace
any of these higher-quality offerings, drive-in theaters, analysts
note, are experiencing a resurgence, especially in geographic
locations where they can be open year-round. The movie the-
ater chains are also battling IMAX Corporation for customers
as movie screens get bigger and bigger. The number of these