Showing posts with label in your opinion. Show all posts
Showing posts with label in your opinion. Show all posts

Sunday, May 20, 2018

Organizational Behavior - What type of team was formed here Was it necessary, in your opinion


Organizational Behavior - What type of team was formed here Was it necessary, in your opinion

Organizational Behavior - What type of team was formed here Was it necessary, in your opinion




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Organizational Behavior



 

Note: Solve any 4 Cases Study’s

CASE: I    Pushing Paper Can Be Fun

       A large city government was putting on a number of seminars for managers of various departments throughout the city. At one of these sessions the topic discussed was motivation—how to motivate public servants to do a good job. The plight of a police captain became the central focus of the discussion: I’ve got a real problem with my officers. They come on the force as young, inexperienced rookies, and we send them out on the street, either in cars or on a beat. They seem to like the contact they have with the public, the action involved in crime prevention, and the apprehension of criminals. They also like helping people out at fires, accidents, and other emergencies. The problem occurs when they get back to the station. They hate to do the paperwork, and because they dislike it, the job is frequently put off or done inadequately. This lack of attention hurts us later on when we get to court. We need clear, factual reports. They must be highly detailed and unambiguous. As soon as one part of a report is shown to be inadequate or incorrect, the rest of the report is suspect. Poor reporting probably causes us to lose more cases than any other factor.
I just don’t know how to motivate them to do a better job. We’re in a budget crunch, and I have absolutely no financial rewards at my disposal. In fact, we’ll probably have to lay some people off in the near future. It’s hard for me to make the job interesting and challenging because it isn’t-it’s boring, routine paperwork, and there isn’t much you can do about it.
Finally, I can’t say to them that their promotions will hinge on the excellence of their paperwork. First at all, they know it’s not true. If their performance is adequate, most are more likely to get promoted just by staying on the force a certain number of years than for some specific outstanding act. Second, they were trained to do the job they do out in the streets, not to fill out forms. All through their careers the arrests and interventions are what get noticed.
Some people have suggested a number of things, like using conviction records as a performance criterion. However, we know that’s not fair—too many other things are involved. Bad paperwork  increases the chance that you lose in court, but good paperwork doesn’t necessarily mean you’ll win. We tried setting up the team competitions based on the excellence of the reports, but the officers caught on to that pretty quickly. No one was getting any type of reward for winning the competition, and they figured why should they bust a gut when there was on payoff. I just don’t know what to do.


Question:

1.What performance problems is the captain trying to correct?

2.     Use the MARS model of individual behavior and performance to diagnose the possible causes of the unacceptable behavior.

3.  Has the captain considered all possible solutions to the problem? If not, what else might be done?

CASE: II    How Did I Get Here?

Something was not right. John Breckenridge opened his eyes, saw the nurse’s face, and closed them once more. Cobwebs slowly cleared from his brain as he woke up from his brain as he woke up from the operation. He felt a hard tube in his nostril, and tried to lift his hand to pull it out, but it was strapped down to the bed. John tried to speak but could make only a croaking sound. Nurse Thompson spoke soothingly, “Just try to relax, Mr. Breckenridge. You had a heart attack and emergency surgery, but you’re going to be OK.”
       Heart attack? How did I get here? As the anesthesia wore off and the pain set in, John began to recall the events of the past year; and with the memories came another sort of pain – that of remembering a life where success was measured in hours worked and things accomplished, but which of late had not measured up.
John recalled his years in college, where getting good grades had been important, but not so much as his newly developing love for Karen, the girl with auburn hair who got her nursing degree the same year as he graduated with a degree in software engineering. They married the summer after graduation and moved from their sleepy university town in Indiana to Aspen, Colorado. There John got a job with a new software company while Karen worked evenings as a nurse. Although they didn’t see much of each other during the week, weekends were a special time, and the surrounding mountains and nature provided a superb quality of life.
Life was good to the Breckenridges. Two years after they were married, Karen gave birth to Josh and two years later to Linda. Karen reduced her nursing to the minimum hours required to maintain her license, and concentrated on rearing the kids. John, on the other hand, was busy providing for the lifestyle they increasingly became used to, which included a house, car, SUV, ski trips, and all of the things a successful engineering career could bring. The company grew in leaps and bounds, and John was one of the main reasons it grew fast. Work was fun. The company was growing, his responsibilities increased, and he and his team were real buddies. With Karen’s help at home, he juggled work, travel, and evening classes that led to a master’s degree. The master’s degree brought another promotion—this time to vice president of technology at the young (for this company) age of 39.
The promotion had one drawback: It would require working out of the New York office. Karen sadly said goodbye to her friends, convinced the kids that the move would be good to them, and left the ranch house for another one, much more expensive and newer, but smaller and just across the river in New Jersey from the skyscraper where her husband worked. Newark was not much like Aspen, and the kids had a hard time making friends, especially Josh, who was now 16. He grew sullen and withdrawn and began hanging around with a crowd that Karen thought looked very tough. Linda, always the quiet one, stuck mostly to her room.
John’s new job brought with it money and recognition, as well as added responsibilities. He now had to not only lead software development but also actively participate in steering the company in the right direction for the future, tailoring its offerings to market trends. Mergers and acquisitions were the big things in the software business, and John found a special thrill in picking small companies with promising software, buying them out, and adding them to the corporate portfolio. Karen had everything a woman could want and went regularly to a health club. The family lacked for no material need.
At age 41 John felt he had the world by its tail. Sure, he was a bit overweight, but who wouldn’t be with the amount of work and entertaining that he did? He drank some, a habit he had developed early in his career. Karen worried about that, but he reassured her by reminding her that he had been really drunk only twice and would never drink and drive. Josh’s friends were a worry, but nothing had yet come of it.
Not all was well, however. John had been successful in Colorado because he thought fast on his feet, expressed his opinions, and got people to buy into his decisions. In the New York corporate office things were different. All of the top brass except the president and John had Ivy League, moneyed backgrounds. They spoke of strategy but would take only risks that would further their personal careers. He valued passion, integrity, and action, with little regard for personal advancement. They resented him, rightly surmising that the only reason he had been promoted was because he was more like he president than they were, and he was being groomed as heir apparent.
On November 2, 2004, John Breckenridge’s world began to unravel. The company he worked for, the one he had given so much of his life to build was acquired in a hostile takeover. The president who had been his friend and mentor was let go, and the backstabbing began in earnest. John found himself the odd man out in the office as the others jostled to build status in the new firm. Although his stellar record allowed him to survive the first round of job cuts, that survival only made him more of a pariah to those around him. Going to work was a chore now, and John had no friends like those he had left in Aspen.
Karen was little help. John had spent nearly two decades married more to his job than his wife, and he found she was more of a stranger than a comforter as he struggled in his new role. When he spoke about changing jobs, she blew up. “Why did I have to give up nursing for your career?” she said. “Why do we have to move again, just because you can’t get along at work? Can’t you see what the move did to our kids?”
Seeing the hurt and anger in Karen’s eyes, John stopped sharing and turned to his bottle for comfort. In time that caused even more tension in the home, and it slowed him down at work when he really needed to excel. John would often drink himself into oblivion when on business trips rather than thinking about where his life and career were going. On his last trip he hadn’t slept much and had worked far too hard. Midmorning he had been felled by a massive heart attack.
All of this history passed through John Breckenridge’s mind as he woke after the operation. It was time for a change.

Question:

1.  Identify the stressors in John Breckenridge’s life. Which ones could he have prevented?



2.  What were the results of the stress? Would you consider these to be typical to stress situations and lifestyle choices John made, or was John Breckenridge unlucky?
3.  Assume you are a career coach retained by John Breckenridge to guide him through his next decisions. How would you recommend that John modify his lifestyle and behavior to reduce stress? Should he change jobs? Do you believe he is capable of reducing his stress alone? If not, where should he seek help?

CASE: III    The Shipping Industry Accounting Team

For the past five years I have been working at McKay, Sanderson, and Smith Associates, a mid-sized accounting firm in Boston that specializes in commercial accounting and audits. My particular specialty in accounting practices for shipping companies, ranging from small fishing fleets to a couple of the big firms with ships along the East Coast. About 18 months ago McKay, Sanderson, and Smith Associates became part of a large merger involving two other accounting firms. These firms have offices in Miami, Seattle, Baton Rouge, and Los Angeles. Although the other two accounting firms were much larger than McKay, all three firms agreed to avoid centralizing the business around one office in Los Angeles. Instead the new firm—called Goldberg, Choo, and McKay Associates—would rely on teams across the country to “leverage the synergies of our collective knowledge” (an often-cited statement from the managing partner soon after the merger).
The merger affected me a year ago when my boss (a senior partner and vice president of the merger) announced that I would be working more closely with three people from the other two firms to become the firm’s new shipping industry accounting team. The other team members were Elias in Miami, Susan in Seattle, and Brad in Los Angeles. I had met Elias briefly at a meeting in New York City during the merger but had never met Susan or Brad, although I knew that they were shipping accounting professionals at the other firms.
Initially the shipping team activities involved e-mailing each other about new contracts and prospective clients. Later we were asked to submit joint monthly reports on accounting statements and issues. Normally I submitted my own monthly reports to summarize activities involving my own clients. Coordinating the monthly report with three other people took much more time, particularly because different accounting documentation procedures across the three firms were still being resolved. It took numerous e-mail messages an a few telephone calls to work out a reasonable monthly report style.
During this aggravating process it became apparent—to me at least—that this team business was costing me more time than it was worth. Moreover, Brad in Los Angeles didn’t have a clue about how to communicate with the rest of us. He rarely replied to e-mail. Instead he often used the telephone tag. Brad arrived at work at 9:30 a.m. in Los Angeles (and was often late), which is early afternoon in Boston. I typically have a flexible work schedule from 7:30 a.m. to 3:30 p.m. so I can chauffeur my kids after school to sports and music lessons. So Brad and I have a window of less than three hours to share information.
The biggest nuisance with the shipping specialist accounting team started two weeks ago when the firm asked the four of us to develop a new strategy for attracting more shipping firm business. This new strategic plan is a messy business. Somehow we have to share our thoughts on various approaches, agree on a new plan, and write a unified submission to the managing partner. Already the project is taking most of my time just writing and responding to e-mail and talking in conference calls (which none of us did much before the team formed).
Susan and Brad have already had two or three misunderstandings via e-mail about their different perspectives on delicate matters in the strategic plan. The worst of these disagreements required a conference call with all of us to resolve. Except for the most basic matters, it seems that we can’t understand each other, let alone agree on key issues. I have come to the conclusion that I would never want Brad to work in my Boston office (thanks goodness he’s on the other side of the country). Although Elias and I seem to agree on most points, the overall team can’t form a common vision or strategy. I don’t know how Elias, Susan, or Brad feel, but I would be quite happy to work somewhere that did not require any of these long-distance team headaches.


Organizational Behavior - What type of team was formed here Was it necessary, in your opinion
Organizational Behavior - What type of team was formed here Was it necessary, in your opinion
Question:

1.       What type of team was formed here? Was it necessary, in your opinion?

2.   Use the team effectiveness model in Chapter 9 and related information in this chapter to identify the strengths and weaknesses of this team’s environment, design, and processes.

3.     Assuming that these four people must continue to work as a team, recommend ways to improve the team’s effectiveness.

CASE: IV    Conflict In Close Quarters
A team of psychologists at Moscow’s Institute for Biomedical Problems (IBMP) wanted to learn more about the dynamics of long-term isolation in space. This knowledge would be applied to the International Space Station, a joint project of several countries that would send people into space for more than six months. It would eventually include a trip to Mars taking up to three years.
IBMP set up a replica of the Mir space station in Moscow. They then arranged for three international researchers from Japan, Canada, and Austria 110 days isolated in a chamber the size of a train car. This chamber joined a smaller chamber where four Russian cosmonauts had already completed half of their 240 days of isolation. This was the first time an international crew was involved in the studies. None of the participants spoke English as their first language, yet they communicated throughout their stay in English at varying levels of proficiency.
Judith Lapierre, a French-Canadian, was the only female in the experiment. Along with obtaining a PhD in public health and social medicine, Lapierre had studied space sociology at the International Space University in France and conducted isolation research in the Antarctic. This was her fourth trip to Russia, where she had learned the language. The mission was supposed to have a second female participant from the Japanese space program, but she was not selected by IBMP.
The Japanese and Austrian participants viewed the participation of a woman as a favorable factor, says Lapierre. For example, to make the surroundings more comfortable, they rearranged the furniture, hung posters on the walls, and put a tablecloth on the kitchen table. “We adapted our environment, whereas Russians just viewed it as something to be endured,” she explains. “We decorated for Christmas because I’m the kind of person who likes to host people.”

New Year’s Eve Turmoil

 Ironically, it was at one of those social events, the New Year’s Eve party, that events took a turn for the worse. After drinking vodka (allowed by the Russian space agency), two of the Russian cosmonauts got into a fistfight that left blood splattered on the chamber walls. At one point a colleague hid the knives in the station’s kitchen because of fears that the two Russians were about to stab each other. The two cosmonauts, who generally did not get along, had to be restrained by other men. Soon after that brawl, the Russian commander grabbed Lapierre, dragged her out of view of the television monitoring cameras, and kissed her aggressively—twice. Lapierre fought him off, but the message didn’t register. He tried to kiss her again the next morning.
The next day the international crew complained to IBMP about the behavior of the Russian cosmonauts. The Russian institute apparently took no against the aggressors. Instead the institute’s psychologists replied that the incidents were part of the experiment. They wanted crew members to solve their personal problems with mature discussion without asking for outside help. “You have to understand that Mir is an autonomous object, far away from anything,” Vadim Gushin, the IBMP psychologist in charge of project, explained after the experiment had ended in March. “If the crew can’t solve problems among themselves, they can’t work together.”
Following IBMP’s response, the international crew wrote a scathing letter to the Russian institute and the space agencies involved in the experiment. “We had never expected such events to take place in a highly controlled scientific experiment where individuals go through a multistep selection process,” they wrote. “If we had known… we would not have joined it as subjects.” The letter also complained about IBMP’s response to their concerns.
Informed about the New Year’s Eve incident, the Japanese space program convened an emergency meeting on January 2 to address the incidents. Soon after the Japanese team member quit, apparently shocked by IBMP’s inaction. He was replaced with a Russian researcher on the international team. Ten days after the fight—a little over the month the international team began the mission—the doors between the Russian and international crews’ chambers were barred at the request of the international research team. Lapierre later emphasized that this action was taken because of concerns about violence, not the incident involving her.

A Stolen Kiss or Sexual Harassment

By the end of experiment in March, news of the fistfight between the cosmonauts and the commander’s attempts to kiss Lapierre had reached the public. Russian scientists attempted to play down the kissing incident by saying that it was one fleeting kiss, a clash of cultures, and a female participant who was too emotional.
“In the West, some kinds of kissing are regarded as sexual harassment. In our culture it’s nothing,” said Russian scientist Vadim Gushin in one interview. In another interview he explained, “The problem of sexual harassment is given a lot of attention in North America but less in Europe. In Russia it is even less of an issue, not because we are more or less moral than the rest of the world; we just have different priorities.”
Judith Lapierre says the kissing incident was tolerable compared to this reaction from the Russian scientists who conducted the experiment. “They don’t get it at all,” she complains. “They don’t think anything is wrong. I’m more frustrated than ever. The worst thing is that they don’t realize it was wrong.”
Norbert Kraft, the Austrian scientist on the international team, also disagreed with the Russian interpretation of events. “They’re trying to protect themselves,” he says. “They’re trying to put the fault on others. But this is not a cultural issue. If a woman doesn’t want to be kissed, it is not acceptable.”

Question:

1.                   Identify the different conflict episodes that exist in this case. Who was in conflict with whom?



2.                  What are the sources of conflict for these conflict incidents?
3.                  What conflict management style(s) did Lapierre, the international team, and Gushin use to resolve these conflicts? What style(s) would have worked best in the situation?

CASE: V   Hillton’s Transformation

Twenty years ago Hillton was a small city (about 70,000 residents) that served as an outer to a large Midwest metropolitan area. The city treated employees like family and gave them a great deal of autonomy in their work. Everyone in the organization (including the two labor unions representing employees) implicitly agreed that the leaders and supervisors of the organization should rise through the ranks based on their experience. Few people were ever hired from the outside into middle or senior positions. The rule of employment at Hillton was to learn the job skills, maintain a reasonably good work record, and wait your turn for promotion.
Hillton had grown rapidly since the mid-1970s. As the population grew, so did the municipality’s workforce to keep pace with the increasing demand for municipal services. This meant that employees were promoted fairly quickly and were almost guaranteed employment. In fact, until recently Hillton had never laid off any employee. The organization’s culture could be described as one of entitlement and comfort. Neither the elected city council members nor the city manager bothered the department managers about their work. There were few costs controls because rapid growth forced emphasis on keeping up with the population expansion. The public became somewhat more critical of the city’s poor services, including road construction at inconvenient times and the apparent lack of respect some employees showed towards taxpayers.
During these expansion years Hillton put most of its money into “outside” (also called “hard”) municipal services such as road building, utility construction and maintenance, fire and police protection, recreational facilities, and land use control. This emphasis occurred because an expanding population demanded more of these services, and most of Hillton’s senior people came from the outside services group. For example, Hillton’s city manager for many years was a road development engineer. The “inside” workers (taxation, community services, and the like) tended to have less seniority, and their departments were given less priority.
As commuter and road systems developed, Hillton attracted more upwardly mobile professionals to the community. Some infrastructure demands continued, but now these suburban dwellers wanted more “soft” services, such as libraries, social activities, and community services. They also began complaining about how the municipality was being run. The population had more than doubled between the 1970s and 1990s, and it was increasingly apparent that the city organization needed more corporate planning, information systems, organization development, and cost control systems. Resident voiced their concerns in various ways that the municipality was not providing the quality of management that they would expect from a city of its size.
In 1996 a new mayor and council replaced most of the previous incumbents, mainly on the platform of improving the municipality’s management structure. The new council gave the city manager, along with two other senior managers, an early retirement buyout package. Rather than promoting form the lower ranks, council decided to fill all three positions with qualified candidates from large municipal corporations in the region. The following year several long-term managers left Hillton, and at least half of those positions were filled by people from outside the organization.
In less than two years Hillton had eight senior or departmental managers hired from other municipalities who played a key role in changing the organization’s value system. These eight managers became known (often with negative connotations) as the “professionals.” They worked closely with each other to change the way middle and lower-level managers had operated for many years. They brought in a new computer system and emphasized cost controls where managers previously had complete autonomy. Promotions were increasingly based more on merit than seniority.
These managers frequently announced in meetings and newsletters that municipal employees must provide superlative customer service, and that Hillton would become one of the most customer-friendly places for citizens and those doing business with the municipality. To this end these managers were quick to support the public’s increasing demand for more soft services, including expanded library services and recreational activities. And when population growth flattened for a few years, the city manager and the other professionals gained council support to lay off a few outside workers due to lack of demand for hard services.
One of the most significant changes was that the outside departments no longer held dominant positions in city management. Most of the professional managers had worked exclusively in administrative and related inside jobs. Two had Master of Business Administration degrees. This led to some tension between the professional managers and the older outside managers.
Even before the layoffs, managers of outside departments resisted the changes more than others. These managers complained that their employees with the highest seniority were turned down for promotions. They argued for more budget and warned that infrastructure problems would cause liability problems. Informally these outside managers were supported by the labor union representing outside workers. The union leaders tried to bargain for more job guarantees, whereas the union representing inside workers focused more on improving wages and benefits. Leaders of the outside union made several statements in the local media that the city had “lost its heart” and that the public would suffer from the actions of the new professionals.


Question:

1. Contrast Hillton’s earlier corporate culture with the emerging set of cultural values.



2.  Considering the difficulty in changing organizational culture, why did Hillton’s management seem to be successful at this transformation?

3.Identify two other strategies that the city might consider to reinforce the new set of corporate values.

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Friday, May 18, 2018

In your opinion, does the proposed structure fit with the global environment in which the company is operating Why or why not


In your opinion, does the proposed structure fit with the global environment in which the company is operating Why or why not

In your opinion, does the proposed structure fit with the global environment in which the company is operating Why or why not



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International Mgmt


Case 1:
Want to be More Efficient, Spread Risk, and Learn and Innovate at the same Time? Try Building a “World Car”
Japanese car companies like Toyota and Honda Motor Company are pioneering the auto industries truly global manufacturing system. The companies aim is to perfect a cars design and production in one place and then churn out thousands of “world” cars each year that can be made in one place and sold worldwide. In an industry where the cost of tailoring car models to different markets can run into billions of dollars, the “world car” approach of Toyota and Honda – and which Ford is hoping to emulate – is targeted at sharply curtailing development costs, maximizing the use of assembly plants, and preserving the assembly line efficiencies that are a hallmark of the Japanese “learn” production system.
            As for Honda, the goal is to create a “global base of complementary supply,” says Roger Lambert, Honda’s manager of corporate communications. “Japan can supply North America and Europe, North America can supply Japan and Europe, and Europe can supply Japan and the United States. So far, the first two are true. This means that you can more profitably utilize your production bases and talents.”
            The strategy of shipping components and fully assembled products from the U.S. to Europe and Japan couldn’t have come at a more opportune time for the Japanese car companies, especially when political pressures are intense to reduce the Japanese trade surplus with the United States. The task was made easier due to the strength of the Japanese yen, which has risen about 50 percent against the U.S. dollar. That has made production of cars in the United States cheaper, by some estimates, by $2500 to $3000 per car. That saving more than compensates for the transportation costs for a car overseas. For the first time, Toyota is creating a system that will give it the capability to manage the car production levels in Japan and the United States. It is moving toward a global manufacturing system that will enable it to enhance manufacturing efficiency by fine-tuning global production levels on a quarterly basis in response to economic conditions in different markets.
Questions:
  1. Discuss the strategies implemented by Toyota and Honda to achieve greater efficiency in car production.
  2. How do the automobile companies plan to simultaneously manage risk and gain efficiencies?
  3. Discuss how the car companies use national differences to gain a strategic advantage in the global car industry.

Case 2: Can Little Fish Swim in a Big Pond? Strategic Alliance with a Big Fish
Globalization and the Internet have created unprecedented opportunities for small and medium-sized businesses in Canada – an environment where competition is fierce. To take advantage of these opportunities, while avoiding some of the competitive obstacles often faced by the little fish in the big ocean, many of these businesses are forming partnerships or, more precisely, strategic alliances.
“There are various advantages to forming strategic alliances,” says Estelle Metayer, president of Montreal-based Competia Inc., a leading competitive intelligence and strategic planning company and publisher of Competia Online. “One is the ability to penetrate markets that would be too costly to develop on your own. For example, if you form an alliance with an America partner who can take on your products and distribute them through their network, you could save a lot of money on the marketing side.” Another big advantage comes from joining forces with a business that can provide your enterprise with access to expensive technology you might not be able to afford otherwise.
Management-based strategic alliances are also advantageous, Ms. Metayer says. “Often, smaller companies don’t have big management teams. So if they need someone who has a certain expertise, but they really can’t afford to hire such a person, then they can form an alliance with a company that has that management expertise.”
Forming an alliance with a larger company is sometimes the only way to have access to the type of capital and resources they need to be able to grow, says Gary Shiff, a partner at the Toronto-based law firm Blake, Cassels & Graydon LLP. “For example, we have a client, a very small company of two people, and the only way it could get its product into the marketplace was to establish an alliance with a large company, which it did. The large company will give them a large sum of money. In return, our client will give up a lot of its equity – it will only own 30% or 40% -- but over time, if the product is successful, our client can repurchase some of that equity,” Mr. Shiff says.
Strategic alliances also benefit the big companies. “With large corporations, one of the problems often is the inability to move quickly, because of bureaucracy and more complicated internal politics. Smaller companies are able to react more quickly to changes in the marketplace. So from both parties perspectives, it serves their needs,” he says.
Although the concept of a strategic alliance can sound so appealing to a struggling small business that they might be tempted to run out and get one, experts warn businesses should not rush into partnerships, especially if another company comes courting.
“As a small company, we get five or six requests for alliances a week from companies I don’t know anything about, and suddenly they want to form an alliance. So my advice is not to rush into an alliance. You have to be proactive,” Ms. Metayer warns.
The first step is to examine your business and determine what gaps need to be filled. “Say I’m a small company that is in textile products and I’m finding that to penetrate the U.S. market, I need to be very close to a furniture manufacturer, since they are the ones who will use my textiles. I might want to build an alliance with a big player in the U.S. , and thus be able to penetrate the large distribution channels.”
Once need is determined, the search for a partner can begin. “Alliances don’t work when you don’t know each other well,” Ms. Metayer says. Thorough research of a potential partner is critical. Check out a potential partner’s current viability, look into the company’s management style to see if it is compatible with yours, contact former partners, current and past clients and suppliers. “The way a company treats its suppliers can be indicative of how they will treat their partner.”
She also suggests a small business position itself as a client of a potential partner, to experience how the candidate treats its clients. Even after thorough research, do not rush into an alliance, she says. “Do a project together, for example, work together so you can really see if it works before you go on a larger scale. You also need to make sure legally you have a very tight agreement, in particular one that allows the alliance to dissolve easily. If it doesn’t work, you need to make sure you’ve planned for that.”
Besides legal advice, businesses entering into an alliance should seek out professional accounting advice, Mr. Shiff says. “A strategic alliance will have tax implications, and those tax issues need to be addressed right at the beginning.”
While rushing into an alliance can court a nasty breakup, choosing a partner that is so similar it could be a competitor is courting disaster, Ms. Metayer and Mr. Shiff concur.
“Go back to the example of the textile business—if you build an alliance with someone who builds the frames for the chairs, you’re never going to compete. But if you form an alliance with someone in the U.S. who also makes upholstery textile, eventually one or the other is going to say, ‘hey, I can do this by myself,’” Ms. Metayer says. The last thing any company needs is a rival who has intimate knowledge of its internal operations.

Questions:
  1. Why would small companies want to form alliances with much bigger companies?
  2. What risks do small companies face in forming such alliances?
  3. Discuss how a company should approach the opportunity to form an alliance with another company.

Case 3: The new Organizational Structure of Sumitomo Mitsui Financial Group
Sumitomo Mitsui Banking Corporation [SMBC] announced its plan for the organization structure of Sumitomo Mitsui Financial Group (SMFG), the holding company, which will be established on December 2, 2002. It also announced its plan for the reorganization of SMBC’s head office, which will become effective on December 2, 2002.
SMFG will be responsible for corporate strategy and management, resource allocation, financial accounting, investor relations, IT strategy, nomination of executives, risk management and audit of the group as a whole with ten departments as follows: Public Relation Department, Corporate Planning Department, Investor Relations Department, Financial Accounting Department, Subsidiaries & Affiliates Department, IT Planning Department, General Affairs Department, Human Resources Department, Corporate Risk Management Department and Audit Department. The Risk Management Committee, Compensation Committee, and Nominating Committee will be established within the Board of Directors and be responsible for supervising the operations of the Group as a whole. Regarding the Organizational Revision of SMBC, the following changes will be instituted:
An Asset Restructuring Unit will be established and the following departments will be integrated into the Unit in order to focus further on reengineering and restructuring of SMBC’s corporate customers businesses. This realignment will accelerate the improvement in the SMBC’s loan portfolio in advance of the implementations of the New Basel Accord:
(a)         Credit Administration Department (Transferred from Corporate Service Unit)
(b)         Credit Department I and II  (Transferred from Middle Market Banking Unit)
(c)          Credit Department II and III  (Transferred from Corporate Banking Unit)
Talented staff with essential know-how for corporate revitalization, such as securization, debt-equity swaps, and DIP (Debtor in Possession) finances, and those with accounting and legal expertise from throughout SMBC will be gathered under the Planning Department of the Asset Restructuring Unit in order to strengthen SMBC’s commitment to rengineering and restructuring of its corporate customers’ businesses.
Regarding the reorganization of Existing Departments, in the Corporate Staff Unit, the Investor Relations Department of SMBC will be abolished and the Investor Relations Department of SMFG will have a comprehensive responsibility for the Group’s investor relations activities. The Portfolio Management Department, Market Risk Management Department, and Kobe General Affairs Department will be abolished and functions of these departments will be transferred and consolidated into their related departments. The Equity Portfolio Management Department will be placed under the Financial Accounting Department. In the Corporate Service Unit, the Operations Planning Department will be reorganized to reflect the completion of adjustment and integration of operational processes after the merger.  The International Market Operations Department and Settlement & Clearing Services Department within the Operating Planning Department will be abolished and a new department, Operations and Administration Department, will be responsible for managing the Group’s operational subsidiaries.
The E-Business Planning Department will be integrated into the Electronic Commerce Banking Department along with the Investment Banking Unit’s e-Business, Media and Telecom Department, and the e-Business Patent Department will be abolished and some of its functions will be transferred to the Corporate Staff Unit’s Legal Department. In the Internal Audit Unit, the Audit Department and Inspection Department will be merged and become Audit Department, and the planning function of the Group’s entire Audit Department will be transferred to SMFG. The Audit Departments for the Americas and for Europe will be integrated as part of the Internal Audit Department and Credit Review Department, strengthening their functions.
In the Consumer Banking Unit, the Products & Marketing Department will be reorganized into the following three departments: Financial Consulting Department (responsible for advisory businesses for investment products such as mutual funds, foreign currencies deposit; and insurance); Consumer Loan Department (responsible for businesses such as housing loans); and Consumer Finance Department (responsible for business such as personal loans, personal short-term deposits, and settlement).
In the Middle Market Banking Unit, the Kobe Public Institutions Banking Department will be integrated into the Public Institutions Banking Department in order to unify and fortify the promotion of business to the public institution market. The Credit Department I and Credit Department II, in charge of credit monitoring in the eastern region of Japan, will be merged to form a new Credit Department I, and  the Credit Department III, in charge of the western region, will be renamed Credit Department. The Operations & Systems Department will be abolished and certain functions will be transferred to the Branch Operations Department of the Consumer Banking Unit. The Business Reengineering Department and New Business Promotion Department within the Business Promotion Department will be abolished and the Business Promotion Department will become directly responsible for their functions.
In the International Banking Unit, the Asia Pacific Department will be abolished and its planning and administrative functions concerning office operations in Asia will be transferred to the Planning Department. The Operations & Systems Department will be reorganized and become Systems Department. In the Investment Banking Unit, the Syndications Department will be integrated into the Securitization & Syndication Department. Certain functions of the Securitization & Syndication Department will be transferred to a new department. Structured Finance Department, which will be established to promote business such as project finance, real estate finance, lease finance, insurance finance, and management/ leverage-buy-out finance. The Asset Management Planning Department will be abolished  and its functions for defined contribution pension funds will be transferred to the Corporate Employees Promotion Department of the Consumer Banking Unit.


In your opinion, does the proposed structure fit with the global environment in which the company is operating Why or why not
In your opinion, does the proposed structure fit with the global environment in which the company is operating Why or why not

Questions:
1.                   Why is Sumitomo Mitsui Banking Corporation changing its organization structure?
2.                  What type of structure is Sumitomo Mitsui Banking Corporation implementing? What are the main characteristics of the design?
3.                  In your opinion, does the proposed structure fit with the global environment in which the company is operating? Why or why not?

Case 4    conflict Resolution for Contrasting Cultures
An American sales manager of a large Japanese manufacturing firm in the United States sold a multi-million-dollar order to an American customer. The order was to be filled by headquarters in Tokyo. The customer requested some changes to the product’s standard specifications and a specified dead-line for delivery.
Because the firm had never made a sale to this American customer before, the sales manager was eager to provide good service and on-time delivery. To ensure a coordinated response, she organized a strategic planning session of the key division managers, that would be involve in processing the order. She sent a copy of the meeting agenda to each participant. In attendance were the sales manager, for other Americans, three Japanese managers, the Japanese heads of finance and customer support, and the Japanese liaison to Tokyo headquarters. The three Japanese managers had been in the United States for less than two years.
The hour meeting included a brainstorming session to discuss strategies for dealing with the customer’s requests, a discussion of possible timelines, and the next steps each manager would take.  The American managers dominated, participating actively in the session and discussion. They proposed a timeline and an action plan. In contrast, the Japanese managers said little, except to talk among themselves in Japanese. When the sales manager asked for their opinion about the Americans’ proposed plan, two of the Japanese managers said they needed more time to think about it. The other one looked down, sucked air through his teeth, and said, “It may be difficult in Japan.”
Concerned about the lack of participation from the Japanese but eager to process the customer’s order, the sales manager sent all meeting participants an e-mail with the American managers’ proposal and a request for feedback. She said frankly that she felt some of the managers hadn’t participated much in the meeting, and she was clear about the need for timely action. She said if she didn’t hear from them within a week, she’d assume consensus and follow the recommended actions of the Americans.
A week passed without any input from the Japanese managers. Satisfied that she had consensus, she proceeded. She faxed the specifications and deadline to headquarters in Tokyo and requested that the order to be given priority attention. After a week without any response, she sent another fax asking headquarters to confirm that it could fill the order. The reply came the next day: “Thank you for the proposal. We are currently considering your request.”
Time passed, while the customer asked repeatedly about the order’s status. The only response she could give was that there wasn’t any information yet. Concerned, she sent another fax to Tokyo in which she outlined the specifications and timeline as requested by the customer. She reminded the headquarters liaison of the order’s size and said the deal might fall through if she didn’t receive confirmation immediately. In addition, she asked the liaison to see whether he could determine what was causing the delay. Three days later, he told her that there was some resistance to the proposal and that it would be difficult to meet the deadline.
When informed, the customer gave the sales manager a one-week extension but said that another supplier was being considered. Frantic, she again asked the Japanese liaison to intercede. Her bonus and division’s profit margin rested on the success of this sale. As before, the reply from Tokyo was that it would be “difficult” to meet the customer’s demands so quickly and that the sales manager should please ask the customer to be patient.
They lost the contract. Infuriated, the sales manager went to the subsidiary’s Japanese president, explained what happened, and complained about the lack of commitment from headquarters and Japanese colleagues in the United States. The president said he shared her disappointment but that there were things she didn’t understand about the subsidiary’s relationship with headquarters. The liaison had informed the president that headquarters refused her order because it had committed most of its output for the next few months to a customer in Japan.
Enraged, the sales manager asked the president how she was supposed to attract customers when the Americans in the subsidiary were getting no support from the Japanese and were being treated like second-class citizens by headquarters. Why, she asked, wasn’t she told that Tokyo was committed to other customers?
She said: “The Japanese are too slow in making decisions. By the time they get everyone on board in Japan, the U.S. customer has gone elsewhere. This whole mess started because the Japanese don’t participate in meetings. We invite and they just sit and talk to each other in Japanese. Are they hiding something? I never know what they're thinking, and it drives me crazy when they say things like ‘It is difficult’ or when they suck air through their teeth.
“It doesn’t help that they never respond to my written messages. Don’t these guys ever read their e-mail? I sent that e-mail out immediately after the meeting so they would have plenty of time to react. I wonder whether they are really committed to our sales mission or putting me off. They seem more concerned about how we interact than about actually solving the problem. There’s clearly some sort of Japanese information network that I’m not part of. I feel as if I work in a vacuum, and it makes me look foolish to customers. The Japanese are too confident in the superiority of their product over the competition and too conservative to react swiftly to the needs of the market. I know that headquarters react more quickly to similar request from their big customers in Japan, so it makes me and our customers feel as if we aren’t an important market.”
Said the U.S.-based Japanese: “The American salespeople are impatient. They treat everything as though it is an emergency and never plan ahead. They call meetings at the last minute and expect people to come ready to solve a problem about which they know nothing in advance. It seems the Americans don’t want our feedback; they talk so fast and use too much slang.
“By the time we understood what they are taking about in the meeting, they were off on a different subject. So, we gave up trying to participate. The meeting leader said something about time-lines, but we weren't sure what she wanted. So, we just agreed so as not to hold up the meeting. How can they expect us to be serious about participating in their brainstorming session? It is nothing more than guessing in public; it is irresponsible.
“The Americans also rely too much on written communication. They sent us too many memos and too much e-mail. They seem content to sit in their offices creating a lot of paperwork without knowing how people will react. They are so cut-and-dried about business and do not care what others think. They talk a lot about making fast decisions, but they do not seem to be concerned if it is the right decision. That is not responsible, nor does it show consideration for the whole group.
“They have the same inconsiderate attitude toward headquarters. They send faxes demanding swift action, without knowing the obstacles headquarters has to overcome, such as request from many customers around the world that have to be analyzed. The real problem is that there is no loyalty from our U.S. customers. They leave one supplier for another based solely on price and turnaround time. Why should we commit to them if they aren’t ready to commit to us? Also, we are concerned that the sales force has not worked hard enough to make customers understand our commitment to them.”

Questions:

1.                   How are the managers of the Japanese manufacturing firm different from the American managers in the way they approach conflict resolution and decision making?
2.                  Why do the Japanese consider the Americans managers impatient?
3.                  What would you do to increase the amount of cooperation between the two parties?
4.                  Why did the Japanese not respond to the e-mails and written messages from the Americans?

Case 5        All Eyes On the Corner Office
After more than a decade at the head of Siemens, the icon of German industry, Chief Executive Heinrich von Pierer is something of an icon himself.
In 2003, his name was floated briefly as a candidate for the German presidency. After years of investor criticism that he moved too slowly to transform the $93 billion electronics conglomerate into a global competitor, von Pierer is getting the last laugh. While competitors such as Netherlands-based Philips Group suffered losses during the recent economic downturn, Siemens remained profitable. The share price had doubled over the past year, to almost $87 on the New York Stock Exchange. “He has done good work,” allows shareholder advocate Daniela Bergdolt, a Munich lawyer who once told von Pierer at a stockholders’ meeting that he should leave the company.
Now Bergdolt is worried about what will happen when von Pierer does just that. The 63-year-od executive’s contract expires in September. He is widely expected to accept a two-year extension, but the question of who will succeed one of Germany’s most important executives is fast becoming a hot topic in Germany—and elsewhere in Europe, where a new generation of CEOs is fast taking over. The race to succeed von Pierer, in fact, has already started in earnest. Von Pierer and Siemens supervisory board members are now closely watching a handful of candidates. Front-runners include former U.S. division chief Klaus Kleinfeld and Thomas Ganswindt, who runs the fixed-line telecom equipment business.
The oddmakers currently favor 46-year-old Kleinfeld. Last November, he was promoted to the seven-member central committee of the management board in recognition for his work as CEO of Siemens’ $20 billion U.S. operations from January, 2002, until December, a post seen as good training for the top slot. Like Siemens worldwide, the U.S. operations are a collection of fiefdoms that often need to be strong-armed into cooperating. But there are other credible candidates, including 47-year-old Johannes Feldmayer, another central committee member.
Whoever prevails, a new generation of managers is already moving into Siemens’ top echelons. In just a year, the average age of top management has fallen from 58 to 53, J.P. Morgan Chase & Co. calculates. While rising fortysomethings won't foment revolution at consensus-driven Siemens, they are likely to speed the company’s shift away from its conservative German roots. The new managers will focus more intensely on profit, move faster to unload underperforming units, and shift more production to cheaper locations abroad. “Obviously, von Pierer will be a tough act to follow,” says Henning Gebhardt, head of German equities at DWS, the fund management arm at Deutsche Bank. “But after 10 years, sometimes a change at the top is good.” von Pierer wrought mighty changes, even if his slow-but-steady pace didn’t always satisfy investors. When he took over in 1992, Siemens relied heavily on government contracts, rarely disciplined managers who delivered poor results, and employed 61% of its workforce in high-wage Germany. Transparency? The company published no profit figures for its divisions, and often even employees didn’t know if their units were making money.
POLITICIAN’S TOUCH.  Now Siemens gives detailed company and divisional results quarterly and has sacked numerous underperforming managers. Net return on sales has risen from 2.4% in 1993, the year after von Pierer took charge, to 4% in the latest quarter. Von Pierer responded to criticism that Siemens, which makes everything from locomotives to X-ray machines, had too many moving parts. He spun off dozens of units, including chipmaker Infineon Technologies and the electronic components unit known as Epcos. Now, 60% of employees work outside Germany and the domestic workforce has been cut by a third, to 167,000. Von Pierer, an engineer with a politician’s touch, managed that without provoking extensive labor unrest—no small feat in a land where layoffs are deemed unpatriotic.
The new generation of managers, though, is likely to be more willing to bust heads. Consider the way Ganswindt turned around the company’s $8.9 billion Information & Communication Networks division. He cut the workforce by nearly 40%, or 20,000 workers, to reduce costs by $4.4 billion. He shifted production to Brazil and China. From a loss of nearly $865 million in the fiscal year that ended Sept. 30, 2002, ICN returned to a profit of $64 million in the last quarter.
Despite the improvements, Siemens still gets heat for mediocre margins. Ganswindt and the other young managers are sensitive to the criticism. “You can't innovate if you don’t have money to invest,” he says.
Rising managers will also continue pushing the engineer-dominated company to focus more on customer’s needs. They will maintain Siemens’ steady drive to globalize—not only by investing in Asia and the Americas but also by importing non-German ways of doing business back to Munich.
There is no question, however, of Siemens transforming itself into something other than a German company. “A new CEO will mean change, but I don’t expect a radical departure from the existing philosophy and strategy,” says analyst Roland Pitz of HVB Group in Munich. The fear is that some company directors will try to keep things too German. The supervisory board could name a lower-profile candidate such as Kurt-Ludwig Gutberlet, head of BSH Bosch & Siemens Household Appliances, a profitable joint venture with Stuttgart-based Robert Bosch. “It could be someone who is not the strongest but has the strongest consensus among the gray heads,” says a source who works closely with Siemens. Still, it’s clear that at Siemens, gray heads are becoming ever more scarce.

Questions:
1.                   What leadership skills have contributed to the success of the incumbent CEO, Heinrich Von Pierer? Describe his leadership style.
2.                  Siemens faces challenges in the global marketplace. The company will likely require a different leadership style than Von Pierer’s to face these challenges. What style would you recommend to Siemens?
3.                  Why would the age of the leader be an important consideration in a global company? Would it be important in your consideration of the candidates for CEO of Siemens? Why?

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EMBA IIBMS CASE STUDY SOLUTIONS - Suppose that the market demand curve and the market supply curve for broccoli are as shown in the graph below.

EMBA IIBMS CASE STUDY SOLUTIONS - Suppose that the market demand curve and the market supply curve for broccoli are as shown in the graph...