issm guide

7/28/2019 Issm Guide

1/39

ORGANIZATIONAL MANAGEMENT PROGRAM

Third Edition (f)July 2004

ISSUES IN MANAGEMENT

ADVANCEProgramOhio Valley College

Adult Learner Guide


2/39

TABLE OF CONTENTS

MODULE AT A GLANCE..........................................................................................................................................1

ISSUESIN MANAGEMENT (3)............................................................................................................................... 1

MODULEDESCRIPTION........................................................................................................................................ 1MODULEINTRODUCTION.....................................................................................................................................1LEARNING OUTCOMES............................................................ ....... ....... ....... ........ ....... ....... ........ ....... ....... .... 1EXTERNALRESOURCES........................................................................................................................................2

EVALUATION..............................................................................................................................................................3

ATTENDANCEANDPARTICIPATION...................................................................................................................... 3SUMMARY PAPER CONTENT.......................................................................................................................... 3

writing the summary paper...................................................................................................................................3summary paper grading method...........................................................................................................................4

FACILITATORSCOMMITMENTTOADULTLEARNERS.............................................................................................5GRADING POINT BREAKDOWN............................................................................................................................ 6

ADULT LEARNER ASSIGNMENTS........................................................................................................................7

WEEKONE.........................................................................................................................................................7WEEKTWO........................................................................................................................................................ 7WEEKTHREE..................................................................................................................................................... 7WEEKFOUR....................................................................................................................................................... 8WEEKFIVE........................................................................................................................................................ 8

LOGISTICS CHART..................................................................................................................................................9

APPENDIX..................................................................................................................................................................10

THEFIVEAREASOFMANAGEMENT....................................................................................................................11GROUP REPORT GUIDELINES....................................................................................................................13SWOT ANALYSIS..........................................................................................................................................15EUSEBIUS OMNIBUS CORPORATION (EOC)- A CASE STUDY AND EXPERIENTIAL EXERCISE........18

EOC WORKSHEET 1.........................................................................................................................................21EOC - WORKSHEET 2.......................................................................................................................................22EOC - WORKSHEET 3.......................................................................................................................................23

QUICK-TEST: STRATEGIC DECISIONS......................................................................................................24NEGOTIATION VIA ULTIMATUM.................................... .... ....... .... ....... ....... .... ....... .... ....... .... ....... .... ....... . 25QUALITY MANAGEMENT: A BRIEF CHRONOLOGY...............................................................................26CHRONOLOGY OF TQM...............................................................................................................................32CASE STUDY: H. SERVICE CENTER..........................................................................................................35


3/39

Issues in Management Adult Learners Guide

MODULE AT A GLANCE

ISSUES IN MANAGEMENT (3)

MODULE DESCRIPTION

Adult learners examine management control functions, strategic planning, and organizationalstructure and design. Also examined are motivational theory and its application to individual andgroup functioning in work and home situations. Leadership styles related to particularcircumstances are analyzed. Negotiation concepts and skills are covered through readings andclass practice, with an analysis of the effect on productivity. Total Quality Management (TQM) isstudied and contrasted with Management by Objectives (MBO).

MODULE INTRODUCTION

The major theme of this module is management, that is, management as it pertains to thedynamics of leadership, motivation, strategic planning, and controlling. Total Quality

Management (or more simply, quality management), organizational design, work force diversity,and successful negotiating strategies receive attention. Learning activities disseminate informationand bridge the gap between theory and practice by integrating content knowledge withapplication. Adult learners have the opportunity to assimilate information, synthesize it withexperience, and apply it to their current world of work. Management as an area of study, then,diffuses information, stimulates the learner, and enriches professional practice.

The Logistics Chart summarizes the recommended sequence of activities. In general, the sequenceof events for each session builds on the conceptual framework of reading reinforced byexperience. The adult learners read in an area of study and then experience the concepts andprinciples in the classroom through a variety of activities such as brief lecture reviews,

brainstorming, group discussions, presentations, or related methods. Adult learners haveopportunities to integrate new information with the material so that they can continue to developa specialized knowledge base in the management field. In closing a session, adult learners reflectupon their experiences in a journal. This gives them the opportunity to record significant eventsand creatively plan future utilization of what they have learned.

LEARNING OUTCOMES

Upon successful completion of this module, adult learners will be able to:

1. Appreciate the various dimensions of management.

2. Understand management processes and skills that influence organizational effectiveness.

3. Understand different leadership styles and their impact on subordinate and organizationalperformance.

Page 1 2004


4/39


4. Recognize and discuss diversity in the workforce.

5. Appreciate the impact that values have upon a variety of management decisions.

6. Apply management skills and principles to work-related situations.

7. Analyze and explain TQM methods and relate them to professional situations.

EXTERNAL RESOURCES

TEXTS

Robbins, S. P., & Coulter, M. (2005).Management(8th ed.). Upper Saddle River, NJ:Prentice Hall. ISBN 0-13-143994-4.

Hersey, P., Blanchard, K .H., & Johnson, D. E.(2001). Management of OrganizationalBehavior: Utilizing Human Resources (8th ed.). Upper Saddle River, NJ: Prentice Hall.

ISBN 0-13-017598-6.

Hacker, D. (1999).A Writers Reference (4th ed.). Boston: Bedford Books of St. MartinsPress. ISBN 0-312-26037-7.

INSTRUMENTS

Blanchard, Kenneth. Situational Leadership II Overview Kit, revised Ed.

Blanchard, Kenneth. Leader Behavior Analysis II Instrument. (Self, Other)

Page 2 2004


5/39


EVALUATION

This adult earner evaluation section provides guidelines and tools designed to help the facilitatorapproach the grading process with an understanding of the unique learning styles of adult learners.This evaluation scheme includes brief reaction/critique papers and presentations to acknowledge

the various learning styles that adults possess.

ATTENDANCE AND PARTICIPATION

Class attendance is required to complete the module. Unlike traditional courses, OrganizationalManagement courses rely heavily on the dynamics of cohort interaction and group processes tointegrate and apply the learning of academic content. The cohort model also emphasizes thedevelopment and practice of interpersonal communication skills and teamwork (e.g., groupproblem-solving and negotiation). The format therefore necessitates class attendance. In practicalterms, one module session is equivalent to three weeks of traditional semester course work.

SUMMARY PAPER CONTENT

A Summary Paper is due one week following the last class session.

The Summary Paper should address the interaction and foundation of a specific topic or issue(e.g., negotiating for favorable outcomes) that is germane to ones work environment. Begin byidentifying the problem and then move to suggesting a managerial strategy or procedure thatsignificantly resolves the issue. Carefully identify why certain approaches were chosen and whyothers were not (Strengths vs. Weaknesses). The paper should integrate readings, class work, andpersonal job situations and experiences.

WRITING THE SUMMARY PAPER

A. Must be 8-10 double spaced pages in length and formatted according to APA styleas outlined inA Writers Reference.

B. Must have a cover page that includes the following:1. Adult learners name2. Module name and number 3. Name of paper 4. Facilitators name5. Date submitted

C. Must include an introductory paragraph with a succinct thesis statement.

D. The body of the paper must include the following:Three to four specific academic concepts discovered in the module

Page 3 2004


6/39


Each concept must be addressed in the following way:

Reference an academic concept gleaned from classroom or readingexperience during the course of this module. Use APA style asoutlined inA Writers Reference (Hacker 1999) to document allsources.

Provide a context of experience where you saw this academicconcept in operation.

Readdress the concept and the experience with critical thought.That is, how do you respond to the content, positive or negative,and defend your position?

E. The paper must conclude with a re-statement of the thesis and a conclusionparagraph.

F. The final page must be a reference list that is completed according to APA style as

outlined inA Writers Reference.

SUMMARY PAPER GRADING METHOD

A-A/B

The paper is clear, engaging, original, and focused; ideas and content are richly developedwith details and examples. Organization and form enhance the central idea and theme;ideas are presented coherently to move the reader through the text. The voice of thewriter is compelling and conveys the writers meaning through effective sentence structureand precise word choices. The adult learner successfully moves the paper through

academic constructs and experiential documentation to critical analysis. The paperdemonstrates a clear balance of these three components.

B

The paper is reasonably clear, focused, and well supported; ideas are adequatelydeveloped through details and examples. Organization and form are appropriate, and ideasare generally presented coherently. The voice of the writer contributes to the writersmeaning through appropriate and varied sentence structure and word choices. Surfacefeatures do not interfere with understanding or distract from meaning. The adult learnerhas clearly brought the reader through properly cited academic constructs and experientialdocumentation, but has not fully developed the area of critical analysis.

B/C - CThe paper has some focus and support; ideas and content may be developed with limiteddetails and examples. The writing may be somewhat disorganized or too obviouslystructured. The voice of the writer is generally absent; basic sentence structure and limitedvocabulary convey a simple message. Surface feature errors may reduce understanding

Page 4 2004


7/39


and interfere with meaning. The content areas of academic constructs are limited, andlarge generalizations are made. Critical analysis is all but absent from the paper.

C/D (incomplete)The paper has little focus and development; ideas and content are supported by few detailsand examples. There is little discernible shape and no direction. The writers tone is flat.Awkward sentence structure and inadequate vocabulary interfere with understanding.

Limited control of surface features makes paper difficult to read. Demonstrated criticalanalysis is absent, and often-long portions of the paper are given to rambling of lifeexperience without academic context.

Adult learners will receive a copy of the institutions rewrite and late-paper policy. Papers will bemarked accordingly.

FACILITATORS COMMITMENT TO ADULT LEARNERS

Adult Learners papers will be treated as college work. The facilitator will evaluate them fromthat perspective and will make appropriate documented comments and suggestions.

Adult learners work is valued and will be treated with respect.

Page 5 2004


8/39


GRADING POINT BREAKDOWN

Class Participation

Criterion Points Module Outcomes

Is the adult learner engaged in classroomdiscussions? Does the adult learnerdemonstrate an ability to handle assigned

material with a degree of proficiency?(e.g., demonstrating the type ofquestions and issues consistently, andreflecting a familiarity with the assignedmaterial)Participation evaluated according toquality, not quantity, of participation.

20 Demonstrated knowledge of weekly

reading assignments

Constructive comments made in

classroom discussion Important issues raised

Sharing of relevant workplace

experience and knowledge

Active participation in small group

activities

Weekly Projects


Does the adult learner submit weeklywritten assignments or projects whendue? Are they well organized, neat,typed and to the point? Do theydemonstrate knowledge of contentmaterial?

25 Per week assignments at five points

each

Assignment examples: a) One pagecritical response essays to a portion ofassigned reading; b) Bring in examplesfrom the workplace of printed materialdealing with the topic at hand.

Presentation


Did the adult learner demonstrate a clearunderstanding of the topic presented?Was the presentation clearly articulatedand within the time limits specified? Did

the adult learner accurately fieldquestions about the presentationmaterial?

15 One five-minute presentation per adult

learner per module

Deliver a five-minute presentation

centering around the key concepts of an

assigned article or portion of the text Demonstrate group facilitation and

speaking skills

Express a summary, critique, and

conclusion within the five minute timeallotment

Final Summary Paper


Did the adult learner successfullycomplete and submit the class project orsummary paper?

40 Timely submission of assigned summary

paper that demonstrates an integrationof academic content, personal

experience, and critical thoughtPoint Total: 100

Page 6 2004


9/39


ADULT LEARNER ASSIGNMENTS

WEEK ONE

1. ReadManagement, Chapter 16, and Chapter 7, section titled The Role of Goals

and Plans in Planning, pp. 160-169.

2. ReadManagement of Organizational Behavior, Chapter 6, sections titledIntegration of Goals and Effectiveness and Participation and Effectiveness,+MBO pp. 135-141.

3. Turn in your Summary Paper for the previous module.

WEEK TWO

1. Read Management, Chapter 3, sections titled The Organizations Culture and

The Environment, pp. 51-69; answer Question #3 in Thinking AboutManagement Issues, p. 74; readManagement, Chapters 8 and 10.

2. Do a personal SWOT Analysis as outlined inManagementon page 186.

3. Read inAdult Learners Guide, SWOT Analysis and EOC: A Case Study andExperiential Exercise"; do a SWOT Analysis of EOC.; review Quick Test Strategic Decisions.

WEEK THREE

1. ReadManagement, Chapter 17.

2. ReadManagement of Organizational Behavior, Chapter 5, section titled Hersey-Blanchard Tri-Dimensional Leader Effectiveness Model, pp. 117-121; readChapters 8 and 12.

3. Complete the Situational Leadership Leader Behavioral Analysis (LBAII) Self; andLeader Behavioral Analysis II (LBAII) Other. Bring both completed to class.

Page 7 2004


10/39


WEEK FOUR

1. ReadManagement, Chapter 18; analyze Case Application: Niku Corporation, p.486, and answer the three discussion questions for the case.

2. ReadManagement of Organizational Behavior, Chapter 6, pp. 126-138.

3. ReadManagement, Negotiating, pp. 531-532.

4. Read Negotiating Via Ultimatum inAdult Learners Guide.

WEEK FIVE

1. Review Chapter 8 of Management, including "Case Application: Joe BoxerCorporation," pp. 202-203; read Chapter 18 section titled Information Controls,pp. 472-475.

2. Read Quality Management: A Brief Chronology, by Ted Farcasin, in the AdultLearners Guide.

3. Read or view inManagement:i. "Quality Management," pp. 43-44ii. "What is Quality Managment," Exhibit 2.-11, p. 43iii. "Business Level Strategies," pp. 190-194iv. "Benchmarking," pp. 210-211v. "Quality Initiatives and Goals," pp. 502-506

2. Read about diversity issues inManagement:i. "Workforce Diversity," p. 39

ii. "Creating an Inclusive Workplace Culture," p. 58iii. "The Value of Diversity in Decision Making," p. 149iv. "Communication Styles of Men and Women," p. 263v. "Managing Work Force Diversity," pp. 301-302vi. "The Paradox of Diversity," p. 323vii. "The Challenge of Managing Diverse Teams," p. 374viii. "Developing Employee Potential: The Bottom Line of Diversity," p. 410

3. Read "Case Study: H. Service Center," in the Adult Learners Guide.

Page 8 2004


11/39


LOGISTICS CHART

Hour Week 1 Week 2 Week 3 Week 4 Week 5

1

Overview

MotivationalTheories

StrategicPlanning

Leadershipand

Self/BehavioralAssessment

Control Quality

ManagementChronology

2

GroupPresentations

MotivationalTheories

SWOT

Discussion

Control

3

MBO

ExperientialExercise

Organizational

Context Video Negotiations

Negotiating

TotalQualityManagement

4

Summarizing andJournal Entry

Structureand Design

Journal Entry

LeadershipVideo

Journal Entry

Strategies

Journal Entry

Work ForceDiversity

Journal Entry

Page 9 2004


12/39


APPENDIX

Page 10 2004


13/39


THE FIVE AREAS OF MANAGEMENT

MOTIVATIONAL THEORY WORKSHEET

You and your team have been assigned the responsibility of mastering a set of readings in order todeliver a fourteen-minute oral report. It is important that you identify the main concepts andprinciples within your readings.

First, review the assigned reading matter. As you review it, underline (or otherwise note) theideas that seem important to you.

Then answer the following questions. (If two authors are reviewed, use a separate worksheet foreach.)

What were the main themes presented in the reading?

List and briefly define the major concepts developed in the reading.

Which ideas impressed you the most?

Which ideas could be used in your own work situation?

Which idea(s) do you disagree with the most?

Page 11 2004


14/39


Why do you disagree? State your reasons briefly.

Page 12 2004


15/39


GROUP REPORT GUIDELINES

(Preparation for the discussion of the organizational behavior reading materials.)

In preparing for the class discussions, please follow these steps:

Prepare to explain the philosophy of the author assigned to your group as was explained in thereading. Follow these rules for brainstorming:

1. Use a short period of time and make a list of ideas. Far-out and crazy ideas areencouraged because these fantasies spark more practical down-to-earth thoughts.Individual participants should use their MOTIVATIONAL THEORYWORKSHEET notes as a source of ideas.

2. There should be no discussion while the group is compiling its list. The relevanceor importance of an item should be discussed after the list is developed.

After the list of ideas has been completed, discuss and rank order the items by consensus.Follow these rules to arrive at consensus:

1. No voting.

2. Any one person can veto the rank ordering. Be very careful in using thispower.

3. Participants must use compromise as a method of reaching agreement.

4. People should ask themselves if their objections are really that important orwhether they can live with the ranking of the group. If the answer is yes,that they can live with the ranking of the group, then they should move for

a consensus. If the answer is no, that they are set against the ranking ofthe group, then they have the veto power and should utilize it. In thisinstance, there will be no consensus.

After consensus has been reached, prepare your fourteen-minute report for presentation to theclass. Each member should have an active role in the actual presentation. Make sure that all themajor ideas in your set of readings have been covered and you fully explore the implications ofeach authors philosophy.

Once your presentation is planned, use the last few minutes to write down several good questionsfor the group you will be questioning. Group A questions B, B questions C, C questions D, Dquestions E, and E questions A. These questions should reveal problems in the authoritiespositions identified by the participants. Remember that your group has only fourteen minutes tomake a presentation and field a few questions.

Page 13 2004


16/39


Group assignments are as follows:

Group assignments are as follows inManagementby Robbins:

Group A Three Needs Theory p. 396-397

Group B Goal Setting Theory p. 398-399

Group C Reinforcement Theory p. 399-400

Group D Equity Theory p. 403-405

Group E Expectancy Theory p. 405

Page 14 2004


17/39


SWOT ANALYSIS

Ted W. Farcasin, Ph.D.

SWOT analysis is a strategic planning tool that provides managers with a mechanism forformulating an organizational strategy (Certo, 1992; Bedeian, 1993). It matches an institutionsinternal strengths and weaknesses with its external opportunities and threats. From these factors(strengths, weaknesses, opportunities, threats) the acronym SWOT is derived. Managers contendthat carefully scrutinizing these factors will lead to the development of a successful and effectiveorganizational strategy. Such an outcome may take the form of a grand strategy that provides asense of strategic direction for a firm. Engaging in a SWOT analysis requires attention to thefollowing questions:

Analysis of Internal Resources

Strengths

Does the firm have appropriate financial resources?

Does the firm have a management that achieves objectives?

Does the firm have a distinct area of competency?

Is it competitive?

Is it a market leader?

Does the firm have a favorable image among consumers?

Does it have high quality products or services?

Does it have a cost or competitive advantage in any of its markets?

Have current functional strategies been successful?

Weaknesses

Does the firm have low quality products or services?

Do limited finances preclude changes in strategic direction?

Does the firm lack a clear and coherent strategic initiative?

Does the firm have unacceptable levels of profitability?

Does the firm have questionable management expertise, talent, or ability?

Does the firm continually have internal operating problems?

Are facilities out of date?

Is R & D consistently under financed?

Are products or services too limited in their marketability?

Are competitors able to easily gain market share?

Does the firm have a weak image?

Page 15 2004


18/39


Analysis of the External Environment

Opportunities

Is the firm facing rapid growth in markets?

Does the firm have the ability to quickly enter new markets?

Are new products or services scheduled for market introduction? Can the firm diversify into related products or services?

Are competitors not interested in the firms market?

Can the firm more effectively reorganize its product or service offerings?

Threats

Does the firm face strong competition from other firms?

Are new firms or service providers constantly entering the market?

Are competitors that have a price/quality advantage introducing new products or

services?

Has market growth slowed?

Have the demands of consumers shifted to other products?

Have demographics shifted so as to place the firm or service at a disadvantage?

Is the firm vulnerable to business cycles?

Will government intervention place the firm or service at a distinct disadvantage?

Can vendors place the firm in a difficult financial or production position?

Highly effective managers will be able to develop and implement a strategy that utilizes strengthsto exploit opportunities, protect against threats, and compensate for weaknesses. SWOT analysiscan lead to the formation of a grand strategy that is developed at the corporate level of the firm

and focuses on growth, stability, or retrenchment. Growth strategies can be further subdivided interms of concentration, diversification, horizontal integration, vertical integration, or jointventure.

Each one of these has a specific objective. For example, a concentration strategy seeks toincrease the growth of a single product line whereas a diversification strategy shifts a firmsstrategic direction by adding new product lines. A stability strategy is used when a firm wants toachieve steady, but slow, improvements in growth. Retrenchment attempts to reverse poor-organizational performance and can be further categorized as harvesting, turnaround, divestiture,or liquidation. A harvesting strategy tries to minimize current investment in a product line whileattempting to maximize cash flow and short-run profits. For example, the Gillette Company

relegated its Right Guard product line to hold status in 1986 and supplied the production unitwith only maintenance monies and positioned the product to generate cash for other corporatebrands. Turnaround strategies attempt to streamline the organization by reducing costs andincreasing total revenues. Divestiture involves selling off one or more divisions (units orsubsidiaries) in a firm or organization with multiple units. Finally, a liquidation strategy focuses

Page 16 2004


19/39


on the termination of the firm by selling off all assets (Bedeian, 1993). Once a strategic directionhas been identified, it then becomes necessary for management to examine business and functionallevel strategies of the firm (e.g. marketing, staffing, manufacturing, product distribution, service,and delivery) to make sure that all units are moving towards the achievement of the institutionalwide corporate strategy.

Note: As you are thinking about SWOT analysis, you may recall from an earlier module how

similar some of the thinking is to force-field analysis. This may help you in conceptualizing theoverall dynamics of SWOT.

References

Bedeian, Arthur G. (1993).Management, 3rd ed.,New York: The Dryden Press.

Certo, Samuel C. (1992).Modern Management: Quality, Ethics, and the GlobalEnvironment, 5th ed., Boston: Allyn and Bacon.

Farcasin, T. W. (1993). Curriculum Center, Roberts Wesleyan College, Rochester, New York.

No part of this article, or other articles written by this author for this module, may be used orreproduced in any manner without written permission of the author, except in the case of briefquotations embodied in the articles.

Page 17 2004


20/39


EUSEBIUS OMNIBUS CORPORATION (EOC)- A CASE STUDY AND

EXPERIENTIAL EXERCISE


Adult learners are to read carefully the following case. Each adult learner then conducts a SWOT

analysis. The case is typical of an actual situation, with names and circumstances modified toguarantee anonymity. To help you analyze this case, first develop an overall problem statementthat appears to characterize the dilemma confronting this firm. Such a statement should be brief,no more than two sentences. For example, Eusebius Omnibus Corporation faces dramaticgrowth that is out of control, jeopardizing clarity of strategic direction, product quality, andeffective training of key personnel necessary to ensure long-run production and distribution ofcreative products. Market share is growing but customer service is waning; defection tocompetitors is viable. Recommendations should include a grand strategy with appropriatestrategic subdivisions, business level, and functional strategies. Make sure they are tightly written,directly to the point, and not redundant.

Eusebius Omnibus Corporation

Eusebius Omnibus Corporation (EOC) is a multimillion-dollar information diffusion firm withcorporate headquarters in a large midwestern city. The mission of the company is to provide stateof the art information to health care agencies through publications, public speaking programs andvideotape productions. Large government agencies to small community health organizations haveutilized EOCs services. The company has been in business for fourteen years; currently is themarket leader with 47 percent of the market; operates three divisions, each with its ownspecialization, such as the production of videotape presentations that promote behaviors thatimprove public health and combat socially transmitted diseases; and employs over 150 clerical,technical, and professional personnel.

The CEO has been with the company since its inception and is regarded as a visionary, competentleader, excellent planner, innovator in product development, person of high moral standards, andeffective decision maker, and peers and clients esteem him across the business community. He hasformulated an executive constellation of three vice presidents who report directly to him. He hasempowered these VPs to be responsible for the internal operations of the company and to assisthim in long-range strategic planning. Lately, the CEO has been concerned about his own health,threats to market share by increasingly stiff competitors, and the introduction of new product linesby competitors.

EOC is known across the industry as having the finest products available in the informationdiffusion field. Its video productions, sold under the label of Omicron Filmation, have been used

by such large health agencies as the National Association of Internists and University Residents(NAIUR) and the Presidents Commission on Health Care Delivery (PCHCD). This form ofinformation diffusion is expected to grow at an annual rate of 9.75 percent over the next six years.Tapes have been produced in the companys own studio using 1-inch video formats. The companyowns three studio-quality cameras, each initially costing $75,000. Each tape that is made can bereproduced in either 3/4-inch or 1/2-inch format depending on the demands of the consumer. The

Page 18 2004


21/39


average cost of producing a single new video is $5,500. This expenditure includes the use of afive-person production crew who can follow a production from the beginning stages of scriptwriting to the final point of product distribution. Omicron has to sell ten tapes at a cost of $550each to break even or negotiate contracts with clients to produce products that they want but at ahigher cost to the end user. On the average, Omicron has to run ten crews a week, 48 out of 52weeks a year to generate an annual 21 percent return on investment and a 7.5 percent net returnon profits.

However, this business unit generates 69 percent of EOCs total revenue of $11,573,000 dollarsand employs 48 percent of EOCs personnel. Recently, a consortium of new video producers,called Tape heads Incorporated, has purchased advanced technology that allows it to producethe same high quality videos as the Omicron for 57 percent less in average cost expenditures.Savings from this production are passed on to consumers causing long-standing EOC clients tostart contracting with this new enterprise. EOC would have to restructure Omicron substantiallyto take advantage of this new equipment. For example, the same product can be produced by theconsortium with a two-person crew as opposed to five, and these new competitors only leasestudio space as opposed to owning it as does EOC. Fred B., VP of Operations for Omicron,estimates that the unit could restructure, but it would take five years before it would be

competitive with Tape heads. Finally, these new competitors annually produce one production ayear for a worthy charity. This does not generate any revenue but does give them a tax-write offand substantially improves their image among clients and other members of the community. EOCdoes not have such a policy.

The Public Speaking unit of EOC provides seminars to health agencies on topics that meet theirinternal demands. Programs are designed by a staff of professional, technical and clericalpersonnel that comprises 27 percent of EOCs total personnel and generates 11 percent of thecompanys total profits. Many of these programs have been successful for a large number ofclients; thus, net profits on public speaking engagements average 29 percent. There are no newcompetitors in this market, and growth forecasts have stabilized at 3.43 percent per year. SusanH., VP of Operations has submitted a five-year strategic plan to the CEO, suggesting that whilethere will always be a market for public speaking, her unit must begin to develop new productlines and diversify, if it is to remain a profitable contributor to EOCs financial well-being.

Distributing information through the printed media is EOCs oldest and most profitable businessunit. Herman I., VP of Operations for the unit, has indicated that printing and publicationsaccount for 20 percent of total corporate profits. Net operating profits for the unit are at an alltime high of 43 percent, due to debt-free operations, little turnover in technical or clerical staff,high productivity, and quality products that meet the needs of a few large consumers, such as theUS Department of Health Services. The unit has long-term contracts with such agencies that willremain viable for at least five years. Moreover, while the VP also reported that printing is avolatile industry and fluctuates with business cycles, his current customers have acknowledged

that his products are the best in the industry and cannot be matched in cost or quality by any othersupplier. There are three strategic scenarios for this unit. One, if the economy picks up andaverages 5 percent growth in GDP over the next five years, the printing unit will contribute 34.7percent to total profits. Two, if the economy averages 3 percent growth over the next five years,the unit will contribute 22 percent to total revenues. Finally, if the economy averages only 1.75

Page 19 2004


22/39


percent growth over the next five years, the unit will contribute only 9.83 percent to totalrevenues.

Potential needs of new clients are shifting from print media to other forms of informationdiffusion, due to literacy problems. Clients are gaining bargaining power with this unit due to thenumerous alternatives coming on the market that can replace print media. One competitor, arecycler of medical waste products, has found a vendor that can provide it with holographic

images of the same material provided by EOC. This form of information dissemination is moreexpensive than printed documents, but costs are declining as the technology is perfected. Halographics have the advantage of being interactive and significantly more enjoyable to view thanpublications. The major disadvantage of halo graphics is their low Mean Time Between Repairs(MTBR), averaging only 93.4 hours, and the maintenance contract is $3,500 per year. Printingtechnology has a MTBR average of 25 months, and the maintenance contract is $275 per year.

The advantage of printed media is that they can be easily distributed to all members of anorganization quickly and cheaply. EOCs printing unit does offer clients sliding price scales, thegreater the volume the cheaper it is for customers to purchase printed materials. Overnightmailings facilitate on demand delivery of products. No other competitor in the industry can

match this strategy or the unparalleled product and service offered by the printing unit of EOC.Moreover, the VP for this unit is regarded as the most effective manager at EOC. He strategizeswell and has an excellent ability to design systems that motivate, satisfy, and bring out the best inproductivity and with the fewest errors from employees. He is highly respected by the CEO, aswell as his peers, subordinates, and customers. The trust and responsiveness to client needs thathe has established over the years bring in a higher percentage of dollars to the unit than plannedmarketing efforts.

A few moments ago, the CEO received a phone call from a group of New York City investors.They played their trump card immediately, an outright buyout offer of $23,700,000 for EOC. Inthe proposed buyout, current employees would be offered either positions in the neworganization, without guarantees of the same job but with equivalent wages, or lucrativeretirement packages. The CEOs intuitive response was: Visionaries die hard, we have newproducts on the horizons in diverse markets, were financially solvent, ... ouch, that chest pain isstill bothering me. Furthermore, he has heard of such offers in the past; most of them have beenattempts to buy off one of the business units. The CEO has filed these inquiries.

Using the following materials, conduct a SWOT analysis of EOC. Formulate strategicrecommendations that are consistent with the case and your problem statement. Be

prepared to discuss your results and hand in your work.

Page 20 2004


23/39


EOC WORKSHEET 1

FR: (Adult Learners Name)_______________________________________TO: CEO, E.O. Corp.

Problem Statement:

Strengths:

Weaknesses:

Page 21 2004


24/39


EOC - WORKSHEET 2

Opportunities:

Threats:

Page 22 2004


25/39


EOC - WORKSHEET 3

Strategic Recommendations (one page only)

1.

2.

3.

4.

5.

6.

Page 23 2004


26/39


QUICK-TEST: STRATEGIC DECISIONS


Given your strategic planning knowledge, test your talents on the following case.

During the 1980s, through numerous acquisitions, your firm became the nations largestconglomerate in the wholesale chicken distribution business. Recently, you have been able toexpand your operations by entering international markets. An annual review of your companysfinancial statements indicated that one of your purchases, Harolds Growth Hormones, hadbecome the largest supplier of growth hormones for chickens in the country. This operation had a31 percent net profit margin last year, has been able to finance its own operations, and hassubstantially contributed to the overall cash position of the parent organization. Your currentbalance sheet reveals that you have excess cash. Unfortunately, other acquisitions that lookedgood when purchased have laid an egg. The majority of them are losing money and a few havecaptured a small segment of their market, usually less than 2 percent. Over the next five years,social concerns portend an elimination of demand for chickens raised on growth hormones. Yet,Harolds still generates excess cash and has not yet felt declining demand for its product. What

would be your strategic decision? Choose only one. Justify your selection with one or twosentences. You have ten minutes to respond and discuss with facilitator.

1. Reinvest the excess cash into an acquisition that is not doing very well and haspreviously been the recipient of expenditures for capital improvement andpersonnel.

2. Divest your organization of Harolds and use the money to diversify into otherindustries.

3. Maintain Harolds current status, and reinvest the money back into that operation.This acknowledges that the unit is a winner and can continue to sell its producton broader markets, and, simultaneously, conduct research to discover sociallyacceptable growth inducing products.

4. Identify an acquisition that has a minor portion of the market but does not generate

enough revenue on its own to expand. There is potential for dramatic growth withrisk.

Page 24 2004


27/39


NEGOTIATION VIA ULTIMATUM

Ted. W. Farcasin, Ph.D.

A number of years ago Paychex Corporation, a Rochester, NY, firm was a loosely structuredorganization. It had six franchises and eleven joint ventures under its corporate shield, all of whichwere providing payroll services to other organizations. The president, Mr. Tom Golisano(Paychex Headlines) was not sure he had signed contracts for the franchise operations. Itappeared the seventeen companies under the Paychex banner were beginning to pull apart and, ineffect, to threaten the existence of the company. It was at this point that Mr. Golisano decided toform a single company; his strategy was to form one company from the many. He invited all of hisfranchisees and partners to the Bahamas for discussions. He convinced them, even though somewere initially against the idea, that they could no longer be individual entrepreneurs but mustbecome employees and major shareholders. If they followed this formula and stuck to it, all wouldprosper. In its November 11th, 1991 edition,Forbes magazine selected Paychex as the 80th bestsmall company in the United States out of a ranking of 200.

Reference

Paychex Headlines, National News Clippings, Commentary and Coverage. No date.

Question: Why do you suppose the CEO was successful using this type of negotiating strategy?

Page 25 2004


28/39


QUALITY MANAGEMENT: A BRIEF CHRONOLOGY


The focus on quality management is not a recent phenomenon in the United States. It does haveits own historicity and can be documented as part of the broader socio-economic development ofthis country since the late 1920s and early 1930s. Unique to this management philosophy has beena lack of consistency in its application. Thus, this paper will illumine specific time frames whenquality management has gained attention from scholars, practitioners, industrial enterprises, orgovernments.

In the 1920s, the Western Electric Corporation created a department to investigate questionspertaining to quality and its effective control. Walter A. Shewart, a member of this department,made significant contributions to quality control by recognizing the importance of measuring thevariability of a products dimensions (Sashkin & Kiser, 1992). From these measurements, itbecame possible to establish acceptable ranges of tolerance for manufacturing a particularproduct. Variations in product dimensions beyond these acceptable ranges could be measured andtheir causes identified. Manufacturing or production changes could then be developed that would

eliminate unacceptable variations and bring the product back into acceptable ranges of numericaltolerance. Statistical techniques were designed by Shewart to measure variations, and graphs weredeveloped that displayed results. From these endeavors, Shewart designed a quality controlprocess that involved setting product specifications and establishing production and inspectionprocedures. This process became know as the Shewart Cycle. In 1931, while at Bell Laboratoriesin New Jersey, Shewart publishedEconomic Control of Quality ofManufactured Products. Thisbook delineated statistical quality control procedures and became the salient work in this newlydiscovered field.

After World War I and into the 1920s, industry in the US became aware of methods that weredesigned to improve product quality. However, the strategic focus of industry was not on the

implementation of methods to improve quality but on the production of goods that satisfiedconsumer demands within certain quality parameters. With the advent of the Great Depression in1929, a bevy of devastating economic issues that took precedence over quality controlmethodologies buffeted industrial manufacturing. Yet, it was during this same period thatShewarts work caught the attention of W. Edwards Deming. In the mid 1930s to early 1940s,Deming met with Shewart at Bell Labs to grasp, refine, and improve techniques related tostatistical quality control. Deming reformulated the Shewart Cycle in quality terms that involvedplan-do-check-act procedures. This process later became know as the Deming Cycle, but Demingremained faithful to its original name. He further improved some of Shewarts statistical methodsand published some of his findings in available professional journals of that time.

Deming held a doctorate in physics from Yale University, but out of force of practice andprofessional desire had become a statistician. One of his primary objectives was to disseminate hisrapidly expanding statistical quality control knowledge base. In 1941, he joined the US WarDepartment, where he taught quality control methods to various engineers, technicians, andemployees who were concerned with efficiently producing quality products for the war effort(Certo, 1992). He demonstrated techniques for random sampling of products and how to display

Page 26 2004


29/39


variability of product attributes on control charts. His methods proved effective in improvingproduct quality, and some were classified as military secrets. After the war and declassification ofhis ideas, Deming soon realized that his previous undertakings had had no lasting impact onAmerican management. Managers in the US were essentially concerned with production that metpost-war consumer demands and not with quality. In effect, Deming was virtually an unknownfigure in the United States from the end of the Second World War to the l980s. It was not untilJune of 1980 when NBC broadcast the documentary If Japan Can...Why Cant We? that

Deming began to be recognized as someone who could significantly contribute to therevitalization of American industry.

At the end of World War II, Deming worked as a statistician for the US Census Bureau and wasattached to the occupation forces of General Douglas MacArthur stationed in Japan. His missionwas to lecture Japanese industrialists and entrepreneurs on the positive long-term outcomes theywould achieve by emphasizing quality throughout their firms. Demings pitch was that theelimination of statistical variation in the production and delivery of goods and services wouldsystematically lead to outstanding quality in manufacturing. Statistical analysis would be used todetect and remedy product defects at the beginning of the manufacturing process, thus eliminatingthe need for inspection teams that would identify and fix mistakes at the end of the process. His

focus was on the system and not on the worker, contending that 94% of production errors werethe fault of the system and only 6% the fault of the worker. Within five years, such companies asMatsushita Electric Corporation and Mitsubishi Heavy Industries were active disciples of hismethods (Yates, 1991).

To further his quality concepts, Deming wanted to involve Japans key industrial leaders in hislecture series. He asked his Japanese host, Mr. Ichiro Ishikawa, a former professor of many ofJapans business leaders, if it would be possible to speak to the countrys key corporateexecutives. Unknown to Deming, his host was the presiding chairman of the Japanese Federationof Economic Organizations, and, upon Ishikawas request, Japans strategic business leadersbegan attending Demings lecture series. On July 26, 1950, he addressed members of the IndustryClub of Japan. This club included some of Japans best engineers, corporate presidents, andscientists, who later began applying statistical quality control procedures to their organizations.Their objective was to bolster and enliven Japans post-war economy. Results were positive, andapplications spread across Japanese industries throughout the 1950s. Industrial firms engaged invigorous competition to determine which company could comprehensively and effectivelyimplement quality control applications.

In 1951 the Deming Prize was created by the Japanese Union of Scientists and Engineers (JUSE)after Deming began donating money from his lectures to JUSE. It bestowed upon the firm thatbest achieves quality outcomes. During his continued work with Japanese firms throughout the1950s, Deming developed his fourteen points of quality management. These principles were setforth in his bookOut of the Crisis and can be stated as follows:

(1) Formulate constancy of purpose for improvement of product and service.(2) Adopt the new philosophy.(3) Eliminate reliance on mass inspection.(4) Cease the practice of awarding business on price tag alone.

Page 27 2004


30/39


(5) Constantly and forever improve the system of production and service.(6) Institute training (on how to do the job).(7) Institute leadership.(8) Drive out fear.(9) Break down barriers between staff areas.(10) Eliminate slogans, exhortations, and targets for the workforce.(11) Eliminate numerical quotas.

(12) Remove barriers to pride in workmanship.(13) Institute a vigorous program of education and improvement.(14) Take action to accomplish the transformation.

Recognizing the significance of top-level management in the implementation of a quality culture,Deming later wrote that ...no permanent impact has even been accomplished in quality controlwithout [the] understanding and nurture of top management (Sashkin and Kiser, 1992:22). WhileJapanese managers accepted these principles readily, industrial leaders in the United States wouldnot begin to embrace quality control procedures until the mid 1980s.

In 1949, Dr. Genichi Taguchi, an employee of Nippon Telephone and Telegraph Company in

Japan, utilized statistical control techniques to improve corporate productivity. His primary focuswas on the design stage of quality processes; he referred to his efforts as quality engineering(Mondy & Premeaux, 1993). Taguchi contended that quality must be designed into each productmanufactured by an organization. In 1979, he published an important work, QualityEvaluationsin Japan,in which he illuminated his concerns.

Joseph Juran, a contemporary of Deming who had worked with Shewart at Western Electric andBell Laboratories, arrived in Japan in 1951. In that same year he had published his most significantbook titled Quality Control Handbook. His approach was similar to that of his Americanpredecessor, delivering lectures to Japanese industrial leaders on issues related to quality control.Dr. Juran emphasized that quality should be pervasive, involving planning as well as productionprocesses. Clear tactics were developed to vigorously analyze manufacturing processes in aneffort to find and eliminate mistakes that reduce quality, satisfy consumer demands, and fosterteamwork, innovation, and continuous improvement (Mondy & Premeaux, 1993). Juran devotedspecial attention to the design of quality management processes that focused on specific methodsto integrate customer demands with product development. Acknowledging his contributions, theEmperor of Japan awarded him the Order of the Sacred Treasure, one of the countrys mostrevered honors.

In contrast, across the Pacific, American firms were not uniformly moving in the direction ofadopting quality management processes. Aware of this shortcoming, Juran later established hisown institute with the mission of taking the message of quality control to public and privateorganizations around the world. However, the impact of his teachings never enjoyed the level of

success in other countries as it did in Japan.

In the 1940s, Armand V. Feigenbaum was the leading quality-control expert at General Electric.He advanced ideas suggesting that statistics was a viable knowledge base for qualityimprovement. He contended that quality was of central concern to all employees and not just to

Page 28 2004


31/39


managers (Massie & Douglas, 1992). It was the responsibility of all personnel to ensure that highstandards of product quality were attained. Involvement of employees in the decision-makingprocess was crucial to this perspective and gave impetus to the creation of Total Quality Control(TQC). TQC encouraged the utilization of quality circles to solve problems and implementsolutions. It granted employees the capacity for self-correction of their own errors, the chance toreport inferior quality in materials or product craftsmanship, and promoted training. Feigenbaumfirst used the term total quality control in his article Total Quality Control, published in the

1956 November/December edition of the Harvard Business Review. He further developed hisproduct-improvement ideas in a book written for McGraw-Hill in 1961, titled Total QualityControl. TQC closely resembles what we currently call total quality management. Interestingly,his conceptualization of quality control was effectively embraced in Japan prior to dramaticacceptance in the United States.

In 1960, Martin Corporation, an American firm, appeared to adopt successful quality managementprocedures in the building of a defect-free Pershing missile. The company used the concept ofteams to ensure quality in the design and manufacture of this product. A member of one of theseteams was Philip Crosby, who became one of Americas premier quality management experts. In1979, Crosby published Quality is Free. Since then, he has enjoyed success as a quality

consultant in the United States, Japan, and Europe. Crosby contended that poor quality wouldcost a manufacturing firm approximately 25 percent of sales in terms of warranty payments andengineering defects and 40 percent of the operating costs of a service company. True qualitystandards should equate to zero defects, quality necessitates conformance to requirements, andachieving quality requires statistical controls that prevent defects and the necessity of inspection.As American companies began to implement quality control techniques in the mid 1980s,processes were developed that encouraged error-free production activities (Mondy &Premeaux, l993).

From the early 1960s to 1990, American industry experienced a disastrous loss in worldwidemarket share in durable goods. US manufactures had more than a 50 percent loss in markets toforeign-international companies in such product lines as athletic shoes, automobiles, cameras,computer chips, medical and optical equipment, robotics, stereo gear, televisions, and tires.Aware of these systematic losses American management finally began to search for innovativepractices that would circumvent such outcomes. In 1985, David Packard chaired a specialcommission to study the administration and management of national defense. His energies led tothe development of what was to be recognized as Total Quality Management (TQM). Sashkin andKiser (1992) have defined TQM as follows:

TQM means that the organizations culture is defined by and supports theconstant attainment of customer satisfaction through an integrated system oftools, techniques, and training. This involves the continuous improvement oforganizational processes, resulting in high quality products and services.

Bedeian (1993) succinctly defines TQM as ...an approach to quality improvement that signifieslong-term success through customer satisfaction. Regardless of definition, employees at all levelsof the organization have the continuous responsibility of seeking alternative strategies, tactics or

Page 29 2004


32/39


procedures that improve current operating processes. A better process will inevitably result in animproved product or service.

To bring national attention to this type of management philosophy, the US Congress on August20, 1987, created the Malcolm Baldrige National Quality Award. Criteria for winning this prizeinclude leadership, information and analysis, strategic quality planning, human resourcedevelopment and management, management of process quality, quality and operational results,

and customer focus and satisfaction. The award is given to for profit organizations in threecategories: manufacturing, service, and small business. In 1992, AT&T Network Systems Groupand Texas Instruments Inc. won in the manufacturing category; AT&T Universal Card Servicesand the Ritz-Carlton Hotel Company won in the service category; and the winner in the smallbusiness category was Granite Rock Company of Watsonville, California. The award intends topromote the importance of quality as central to competitiveness, knowledge of requirements forquality and excellence, the sharing of data on successful quality strategies and the benefits derivedfrom implementation of these strategies (1993 Award Criteria, Malcolm Baldrige National QualityAward).

In 1988, former Secretary of Defense Frank Carlucci made TQM the central management policy

of the Department of Defense. In this same year, JUSE initiated a series of English languagelectures on quality control management to such organizations as Dow Chemical, Motorola,Volvo, and Xerox Corporation. In 1989, the Deming Prize was extended to the United States,and the first company to win it in this country, or outside of Japan, was Florida Power and Light.Currently, in the United States, the Malcolm Baldrige National Quality Award is the prize ofchoice.

Moving into the decade of the 90s, TQM has finally garnered advocacy across American industryand service sector firms. Such institutions as Oregon State University, IBM, Motorola,Westinghouse, Globe Metallurgical Incorporated, Federal Express Corporation, Cadillac MotorDivision, Marlow Industries, and Zytec Corporation of Eden Prairie, Minnesota have embracedthe TQM philosophy and procedures. It provides a systematic process for company-wideparticipation in the design, planning, and implementation of continuous improvement strategiesthat result in quality products or services that exceed client demands. Current methodologiesfocus not only on statistical process controls but also on the utilization of management functionsthat broaden the scope of TQM. Such activities focus on breakthrough planning that imbues TQMwith a sense of strategic vision, daily management demonstrating what must be done, measured,and controlled to meet customer expectations, cross-functional management employing personnelor teams across divisions to achieve objectives, and an overarching sensitivity to customerdemands (Mondy and Pemeaux, 1993).

The unfolding dynamics of TQM are even influencing its nameplate, with some scholarsreferring to it as company-wide quality (CWQ) (Certo, 1993). Technical advances in quality

management may unveil computerized processes that have the capacity to identify flaws inmanufacturing systems before they occur and make appropriate adjustments in productionsequences that eliminate potential process or product defects. It seems then, that for theimmediate future, TQM will remain a major force in revitalizing American industrial and service-sector firms.

Page 30 2004


33/39


References

Bedeian, Arthur G. (1993).Management, 3rd Ed. New York: The Dryden Press, p. 672.

Certo, Samuel C. (1992). Modern Management: Quality, Ethics, and the Global Environment,

5th Ed. Boston: Allyn and Bacon, pp. 525-535.

Malcolm Baldrige National Quality Award, 1993 Award Criteria. pp. 36-38.

Massie, Joseph L. and John Douglas. (1992). Managing: A Contemporary Introduction, 5th Ed.Englewood Cliffs: Prentice Hall, pp. 300-303.

Mondy, R. Wayne and Shane R. Premeaux. (1993). Management: Concepts, Practices, andSkills, 6th Ed. Boston: Allyn and Bacon, pp. 525-535.

Sashkin, Marshall and Kenneth J. Kiser. (1992). Total Quality Management. Seabrook, MD,

Ducochon Press, pp. 4-35.

Yates, Ronald E. Japans Winning Formula. In Chicago Tribune, Quality Series November,1991, presented by Irwin Publishing.

Page 31 2004


34/39


QUESTIONS CHR

CHRONOLOGY OF TQM

Adult Learners Name_______________________________________

Write a brief answer to each question (3 to 4 sentences). Responses will be discussed inclass and collected by the facilitator.

1 What are some of the management lessons that can be learned from thischronology?

2 What is the role of leadership in TQM?

Page 32 2004


35/39


TQM Questions continued.

3. Are there any implicit or explicit assumptions of TQM that would make it difficultfor all firms or service agencies to implement it in the same way?

4. Recalling the MBO readings (article and text) and McGregors Theory X & Y, doyou think TQM is opposed to MBO? Does TQM embrace either Theory X or Y.

Page 33 2004


36/39


5. In the April 18, 1992 edition of The Economist, a survey of 500 Americancompanies found that only one third of them saw TQM as significantlycontributing to their competitiveness. Why?

6. What is your forecast for TQM?

Page 34 2004


37/39


CASE STUDY: H. SERVICE CENTER


H. Service Center (HSC) is a nonprofit home and health care facility for retirees who are suffering

from terminal illnesses. Currently, there are twenty-seven clients living at the facility, all of whomare suffering from some type of malady that will cause them to succumb within the next twoyears. There is a waiting list of 230 applicants who would like to spend their final days in thisfacility that has an excellent reputation for compassionate care. The staff is unique in compositionin that it is comprised entirely of minorities. The director of this agency is Ms. Y.R. who reportsto a governing board of medical, social work, and media volunteers. She has been with the agencyfor thirteen months, and she is the fourth director to hold that position since HSC opened twoyears ago. Ms. Y.R. has a staff of four administrators and eleven health care providers, includingtwo part-time physicians who donate their time, energies, and skills.

HSCs mission is to provide the finest in compassionate care to the dying. The agency is fundedby contributions from donors and other large nonprofit agencies. The total budget for fiscal year

l994/95 is $327,000. The agency has two problems that threaten its existence. Care is superb, butadministrative and personnel issues are devastating. Reports that are required by law and fundingagencies are not being produced. Mr. H., the chief administrator and Y.R.s immediatesubordinate, is a pleasant, long-winded administrator who is unwilling to acknowledge problemsand tends to rationalize away all difficulties. He is arrogant toward his three subordinateadministrators and has not given any of them a raise in two years. This is especially frustrating toMs. S.T., who is deeply committed to the agency and spends many extra hours trying to getthings done, but who finds Mr. H. impervious to her efforts.

The health care providers consist of three Hispanics, four American Indians, two Pacific Islanders,and two African American physicians (one male and one female). The physicians believe the

medical staff personnel are incompetent, and they do not trust them. The remaining care providersfeel that other groups on their same professional level are stupid and lack culture. Communicationis strained between groups, and people are isolating themselves. There is a general feeling amongcare providers that the administrators do not care for them, neither do they appreciate theirprofessional expertise. Interestingly, all of these people appear to be morally responsible; therehave been no incidents of sexual harassment, immoral activity, or pilfering of drugs. Some timeago, a young woman filed a discrimination suit against HSC. She claimed she was discriminatedagainst during the hiring process because she was a woman. Ms. Y.R., the only person tointerview her, did hire another candidate (Ms. S.T., a person of Asian-Pacific descent) for anotheradministrative slot. Y.R. disclaims any discrimination. However, the Department of Labor foundotherwise and awarded the woman $183,000 in damages. Payment is pending.

If such monies were to be paid out, HSC would be forced to close down immediately. The Boardand Y.R. have agreed to hire your management consulting team to solve these problems. Theyeagerly await your recommendations.

Page 35 2004


38/39


Take some notes on this case that would help you solve these problems in class when

participating on a management consulting team. Feel free to draw upon knowledge youhave gained from your strategic planning and leadership studies.

Case Notes:

Page 36 2004


39/39


Recommendations for HSC Case --Complete in Class.

MS 8/23/01

Page 37

issm guide

Documents