Linh Hien Nhi Duyen

Part 1: Part 1: Manchester City Part 1: Part 1: Chap

-Zappos Chapter 17 (
-Tableau -116
-Deutsche Telekom -648-Adjust
Cultural Dif
Turmoil

Part 2: Part 2: Costco Part 2: Fear of failure Part 2: Globa

Part 3: Pfizer Part 3: Part 3:

-GG India
-Maersk China

Part 4: Part 4: Tencent

-Amazon
-Employee engagement

Part 5: Lululemon Part 5: Chipotle Part 5: BYOD

PART 1: Introduction to Management Basics of Managing in Today’s Workplace

1. Zappos: ✔
1-17. What is a holacracy?
1-18. What benefits do you see to an organization where there are no job titles, no managers,
and no hierarchy?
1-19. What challenges does a holacratic approach have?
1-20. Discuss why you would or would not like to work in an organization like this.

LO 1.2: EXPLAIN why managers are important to organizations.

Managers are important to organizations for three reasons. First, organizations need their managerial
skills and abilities in uncertain, complex, and chaotic times

LO 14.3: EXPLAIN how communication can flow most effectively in organizations

Dùng exhibit 14-4 (p.449)

LO 16.5: DISCUSS twenty-first century issues affecting leadership

Empowering employees is essential as it lets people who are most knowledgeable about the issues—
often those at lower organizational levels to make decisions.
_____________________________________________________________________________

What is holacracy?

According to Robbins (2018), holacracy is a type of management that prioritizes self-managing,

therefore, such an organization system has no job titles, no managers, and no top-down hierarchy.
Holacracy is a revolutionary management system as it enables everyone to become a leader. This new
type of arrangement is to focus on the work that needs to be done and not on some hierarchical
structure where great ideas and suggestions can get lost in the channels of reporting.

Cái bảng sẽ trả lời cho câu 1-18, 1-19 & 1-20
http://www.hetprogrammahuis.nl/wp-content/uploads/2016/08/Beyond-the-Holacracy-Hype.pdf
CRITERIA BENEFITS CHALLENGES

Fluid individual roles and EMPLOYEE PERSPECTIVE: EMPLOYEE PERSPECTIVE: (3)

responsibilities (1)
- A number of employees may not
- Holacracy approach enables have a chance to make the most
several roles to lead the projects of their talents:
as written in p.62 “Everybody is
expected to lead and be an Example:
entrepreneur in their own roles,
and holacracy empowers them to Poor performers will be obvious
do so.” because they won’t
have enough “roles” to fill their
- HBR (2016), holacracy gives time, or a circle charged with
employees a latitude to adapt to monitoring the company’s culture
changing conditions and make may decide they’re not a good fit
=> facing Technical
correct decisions → hierarchy skills
often doesn't provide that
flexibility and discretion. - During chaotic times, when a
majority of employees are lost,
→ increase employees’
top managers, with strong
satisfaction and productivity managerial skills, are still
required (LO 1.2) as:
EMPLOYER PERSPECTIVE:
 - Holacracy enables employee → motivate and let employees
empowerment → let people feel safe during crises →
who are most knowledgeable strengthen the trust of
about the issues—often those at
employees towards the
lower organizational levels to
company.
make decisions (LO 16.5)

→ increase the percentage to → they are the one to give out

give correct solutions, ideas in specific guidelines to overcome
the moment challenges.

→ increase organizational
EMPLOYER PERSPECTIVE:
performance.
- Holacracy only works in some
cases, specifically innovation
prioritized organization →
evidence: “Self-managed teams
are most appropriate in
organizations where innovation
is strategically important.”
(p.439)

→ holacracy may not be

effective for organizations for
example, manufacturing,
prioritized repetition.

Flatter organizational EMPLOYEE PERSPECTIVE: EMPLOYEE PERSPECTIVE: (4)

culture (2)
High possibilities of conflicts
- Holacracy enables the occurring as different from
flexibility in communication hierarchy, under holacracy
process → it applies the all approach:
channel communication - Leadership role is switching all
network (LO 14.3) → free flow the time → everybody needs to
of information
be equipped with strong
+ Saving time to transfer leadership skills to lead.
information and making
decisions, evidence: “Without - A variety of input ideas come
titles or a hierarchy, anyone can from a pool of talents.
initiate a project and implement
innovative ideas.” (p.62)
That is why unless everyone in
+ Helps employees to make the organization all have strong
decisions rapidly and leadership skills (able to control
 incrementally with maximal other talented employees), the
information (Mosamim, 2020) organization is gonna be a mess.
→ increase employees’
productivity Examples: “dominant
https://msocialsciences.com/inde personalities emerging as
x.php/mjssh/article/view/600/43 authority figures, which could
0 potentially cause other employees
to be resentful or to rebel” (p.62)
EMPLOYER PERSPECTIVE:
EMPLOYER PERSPECTIVE:
- Without superior’s
- Without top management,
restriction, employees are free
organizations may observe a loss
to come up with innovative
in control of their employees’
ideas to improve the working
working process.
environment → increase the
organizational performance.

1-20:
Why would would like to work in an organization like this: (1), (2)
Why you would not like to work: (3), (4)

2. Manchester City: ✔

LO 2.3/ CLASSIFY decisions and decision-making process. Explain what are structured and
unstructured problems, as well as programmed and non-programmed decisions

LO 2.5/ IDENTIFY effective decision-making process. An effective decision-making process includes

objective thinking and blends both analytical and intuitive approaches.
------------------------------------------------------------------------------------------------------------------------

2-15. What types of decisions are made by football managers? Would you characterize these
decisions as structured or unstructured problems? Explain.

- Football managers had to make nonprogrammed decisions. The problems they face are
categorized as unstructured problems. (LO 2.3).
- Unstructured problems is defined as information of which is ambiguous or incomplete and
thus it requires unique, non-recurring and custom-made solutions also known as
nonprogrammed decisions.
- Football managers everyday face various kinds of situations, their approaches cannot be the
same, rather they have to take unique nonprogrammed decisions. Because each of the
opponents have different strategies, abilities, strengths and weaknesses, the manager has to
analyze it all and make dynamic decisions.

2-16. Describe how big data can help football managers to make better decisions and how this
has an effect on the decision-making process.
 - How big data can help football managers to make better decisions (LO 2.5):
+ Decrease the uncertainty, manage risks
+ Optimize the possible outcome, Ex: the number of crosses, effective or ineffective
tackles, balls lost or recovered, the relationship with midfield, and movements in
protecting their penalty area.
+ Recognize strengths and weaknesses and by then focus on the advantage and improve
weaknesses.
- How this has an effect on the decision-making process (Exhibit 2-1)

Decision-making How big data has an effect

process

1.Identify a Problem Improve in some cases but the number doesn’t always represent all the problem

2. Identify Decision Effectively point out what’s important or relevant to resolving a problem through
Criteria data analyze

3. Allocate Weights to Yes, the manager can weigh the strategies, their players’ strengths in order to
the Criteria make the correct priority in the decision.

4. Develop Alternatives It does help in listing the alternatives.

5. Analyze Alternatives Big Data could help managers to keep track on what done well what not hence
make it easier for manager to evaluate

6. Select an Alternative Not all the time but big data do help manager in selecting the best alternative
through statistic

7. Implement the Although big data might bring a lot of advantage but it hindered by others
Alternative problems with player commitment and the changing environment

8. Evaluate Decision With big data, managers can see whether the problem is defined correctly or not,
Effectiveness if there are any errors when evaluating alternatives.
However, with the problems related to the players’ emotions or spirit, big data
can’t help point them out.

2-17. What type(s) of conditions are more likely to influence the performance analyst team’s
work: certainty, uncertainty, or risks? Explain.

- Risks are more likely to influence the performance analyst team’s work. The performance
analyst team analyzes the big data and estimates the possible outcomes for different decisions.
In other words, it lets them assign probabilities to different alternatives. This is a risk, because
the outcome is not certain nor can its probability be not estimated. The team can rather
estimate the likelihood of certain outcomes.
- To be more specific, this below table would analyze the influence of the performance team’s
work (LO 2.3):

Certainty Uncertainty Risks

Definition A situation in which a A situation in which a decision A situation where the decision
manager can make maker has neither certainty nor maker doesn’t know exactly the
 accurate decisions reasonable probability possible outcome but is able to
because all outcomes estimates available estimate the likelihood of certain
are known outcomes

How it Have a little impact as Have a tremendous impact on Under risk, managers have
influences the all the major outcome analyst performance in a historical data from past personal
performance have already been negative way. There is not experiences or secondary
known much information to gather information that lets them assign
hence making it harder to probabilities to different
identify the problem or alternatives.
develop the alternative. => positive influence on analyst
performance

2-18. Do you think it is appropriate for football managers to use only quantitative
information to evaluate their players’ performance during a season? Why or
why not?

- Big data is the vast amount of quantifiable information that can be analyzed by highly
sophisticated data processing (ref PM textbook, pg 100)

=> With data at hand, managers are have very powerful tools to help them evaluate each player
exclusively

Issue:
- Manchester City was underperforming more than any other club in Premier League with only
one set-piece goal scored over 21 matches (use of data to address the problem)

Actions:
- The goal of the data analytical team is to help the players to become more reflective and
aware of their unique features, actions, and movements on the pitch
- In application for Manchester City, quantitative information (analyzes more than 500 corner
kicks

=> Diversify the team’s tactics, strategies (player movements) to score more goals in the set-piece
positions (more effective decision making process) (ref LO 2.5)

However, no matter how comprehensive or well analyzed the big data, it needs to be tempered by
good judgment (ref LO 2.5)

- There are several factors that affect the player’s performance, but cannot be presented as data
such as their emotions, behaviors, motivation,.. (unstructured problems)

=> Managers have to make non-programmed decisions (ref LO 2.3)

- The manager needs to acknowledge both subjective and objective thinking and blends
analytical with intuitive thinking (PM textbook, pg 99)
Criteria Assessment on quantitative information

Goal-scoring - Big data is the vast amount of quantifiable information that can
performance of the be analyzed by highly sophisticated data processing (ref PM
players (structured textbook, pg 100)
problems)
=> With data at hand, managers are have very powerful tools to help
them evaluate each player exclusively

- The goal of the data analytical team is to help the players to

become more reflective and aware of their unique features,
actions, and movements on the pitch
- In application for Manchester City, quantitative information
(analyzes more than 500 corner kicks

=> Diversify the team’s tactics, strategies (player movements) to score

more goals in the set-piece positions (more effective decision making
process) (ref LO 2.5)

Other factors No matter how comprehensive or well analyzed the big data, it needs to
affecting the be tempered by good judgment (ref LO 2.5)
performance of the
players
- There are several factors that affect the player’s performance, but
cannot be presented as data such as their emotions, behaviors,
motivation,.. (unstructured problems)

=> Managers have to make non-programmed decisions (ref LO 2.3)

- The manager needs to acknowledge both subjective and

objective thinking and blends analytical with intuitive thinking
(PM textbook, pg 99)

2-19. How can big data transform football decisions in the future?

1. Big data can be used to study and analyze to help managers produce the best solution and
management outcomes in football

● Examine several factors—the number of crosses, effective or ineffective tackles, balls lost or
recovered, the relationship with midfield, and movements in the penalty area

● The analyst team studied more than 500 corner kicks

=> More diverse tactics and strategic attacking and defending plans

2. The players can self-evaluate based on the given data

● Players know how many shot, passes and successful dribbles they made during the previous
match
=> Improvements in the next matches

3. Developing home-grown young players

● Future young players are helped in understanding their strengths and weaknesses; as well as
which position they play most effectively

=> Manager can easily identify which potential minor players would fit into the starting team
=> Focus more on development opportunities

3. Tableau: ✔
ISSUE : barriers of a global company in global environments
CAUSE:
- Culture barriers
- Geographic Distance
- Time differences.
CONDITION: LO3.3 the structures and techniques organizations use as they go international (pg
135 ref eliminated artificial geographical barriers) -
LO3.4 (pg 134 ref managers need cultural intelligence or cultural awareness and sensitivity skills,
global mind-set)- eliminates time difference because (pg 134 ref at the same time be as efficient and
effective as possible in reaching the organization’s goals).

3-18. Tableau staffs its international offices primarily with host country nationals. What are the
advantages and disadvantages of this staffing strategy ?

LO3. 1 Contrast ethnocentric, polycentric, and geocentric attitudes toward global business include
democracy, rule of law, a market economy, and adherence to the EU’s goals of political and economic
union.

Advantage Disadvantage

- Language barriers, communication - Host-country manager may not understand

challenges are eliminated. business objectives as well without proper
- Possible better understanding of local training
rules, laws and culture. However, training can successfully engage employees
=> Let employees in those locations figure out to recognize particular decision-making biases and
how best to do things (pg 117); moreover, local reduce subsequent biased decision making with a long-
employees typically are hired to manage the lasting effect (pg 96)
business, and marketing strategies are tailored to
that country’s unique characteristics (pg 124) - They will need to adjust their leadership styles
- Less costly in both moving expenses and and management approaches to accommodate
training to hire a local person i.e. no need these diverse views, and at the same time be as
to provide booking flight, housing efficient and effective as possible in reaching
 allowance, international salary, etc.
the organization’s goals (pg 134)
- Lack of technical skills and expertise that are
needed by Tableau Company.
- Create the perception of “us” versus “them”
=> The work-family practices and programs
appropriate and effective for employees in one country
may not be the best solution for employees in other
locations. (pg 134)

3-19. Do you agree with Chabot that the company will benefit if more executives spend time in
international offices? Why or why not ?

LO 3. 1 : Contrast ethnocentric, polycentric, and geocentric attitudes toward global business

AGREE DISAGREE

- Become aware of the workplace dynamic

- Facing issues of controlling: cross-cultural
=> Dynamic environments require that managers differences, safety issues: ability to
look for new and innovative ways to attain their approach and respond to routine and
goals as well as those of the organization (pg 103) nonroutine situations within and outside
=> get aligned with the overall goals the home country. (LO 18.5 pg 656)
- Suffer from cultures shock and different
- Able to understand the culture behavior patterns
=> important to recognize that interactions with Since the sociocultural component is concerned
individuals from the culture may differ because a with societal and cultural factors such as values,
variety of factors, such as personality, influence attitudes, trends, traditions, lifestyles, beliefs,
how people interact with each other (pg 132) tastes, and patterns of behavior (pg 255)

=>Time consuming and productivity concerns

- Expenditure requirements for decisions

include international salary, housing
allowance, flight tickets

=>Managers typically prepare budgets for

revenues, expenses, and large capital expenditures
such as equipment. It’s not unusual, though, for
budgets to be used for improving time, space, and
use of material resources (pg…)

3-20. As Tableau executives get ready to spend time in the company’s international offices, how can
they prepare for the cultural differences they will encounter?
Cause: Tableau’s expansion will include operating new international offices
Issues: difficult to sustain the same management practices at home and abroad
The GLOBE studies (p.131-132)
 Hofstede’s Five Dimensions of National Culture-Exhibit 3-6 (pg131)

Tableau has offices in 14 locations: US, Canada, UK (London), Ireland (Dublin), France (Paris),
Germany (Frankfurt, Munich), The Netherlands (Amsterdam), Sweden (Stockholm), Singapore, Japan
(Tokyo), Australia (Sydney, Melbourne), India (Mumbai), South Korea (Seoul), China (Shanghai,
Beijing, Hong Kong)

Cultural differences they may encounter:

Cultural differences High Moderate Low

Power distance England, France the Netherlands

Uncertainty avoidance Germany United States

Assertiveness United States Ireland Sweden

Humane orientation Sweden Germany France

Future orientation the Netherlands Ireland

Canada

Institutional collectivism Germany United States Japan

Hong Kong Singapore

Gender differentiation South Korea Sweden

In-group collectivism China Japan Sweden

Performance orientation United States

Challenges of Managing a Global Workforce: (p.133,134)

● Cross-cultural work teams can have many benefits, but conflicts can arise due to differences
in work methods, pay levels, and language barriers.
 ● Global companies with multicultural work teams are faced with the challenge of managing
the cultural differences in work-family relationships. The work-family practices and programs
appropriate and effective for employees in one country may not be the best solution for
employees in other locations.

Managers can prepare for cultural differences by enhancing cultural intelligence and sensitivity skills;
a global mind-set. (p.134)
● Cultural intelligence:
○ (1) knowledge of culture as a concept—how cultures vary and how they affect
behavior;
○ (2) mindfulness—the ability to pay attention to signals and reactions in different
cross-cultural situations
○ (3) behavioral skills—using one’s knowledge and mindfulness to choose appropriate
behaviors in those situations

- Global Mind Set (exhibit 3-7, p.134)

Factors Challenges Solutions

Differences in work methods, pay levels Cross-cultural work teams can ● Cultural intelligence:
(Equity Theory, p.600) , and conflicts ● (1) knowledge of culture as a
concept—how cultures vary and how
they affect behavior;
● (2) mindfulness—the ability to pay
attention to signals and reactions in
different cross-cultural situations
● (3) behavioral skills—using one’s
knowledge and mindfulness to
choose appropriate behaviors in
those situations

Language barriers. Global companies with ● Global Mind Set (exhibit 3-7)
multicultural work teams are ● Strong organizational culture
faced with the challenge of
managing the cultural
differences in work-family
relationships. The work-family
practices and programs
appropriate and effective for
employees in one country
may not be the best solution for
 employees in other locations

3-21. What are some of the challenges Tableau will face as it hires 1,000 new employees in one
year ?

- LO. 3.4-The main challenges of doing business globally (pg 135 ref) (1) the openness
associated with globalization and the significant cultural differences between countries and
(2) managing a global workforce, which requires cultural intelligence and a global mind-set.
- With its ambitious plan to add 1,000 new employees to its current 2,800 Tableau is sure to
encounter some challenges over the next year. While 400 of the new hires will be located at
headquarters, the remaining 600 will be located abroad, some in new offices.
- Challenges:
+ Time differences in more locations
+ Number of location increase => more country, more time zone
+ More different culture/national culture/org culture => diversity cultures in workplace
challenges => try to unify the benefits of organizational cultures and national cultures adapted
in an organization to create advantages.

The managing director, senior executive spend time with the officers to have more unique teams in
terms of the corporate culture/organizational culture. Due to more employees, directors spend more
time; moreover, more high salary.
=>Be aware all the time

1. Deutsche Telekom: ✔

4-18. What do you think of the “quota” approach that Deutsche Telekom is pursuing? What
benefits and drawbacks does such an approach have?

Outline:
- The “quota” approach: Gender quota
- A limited percentage of hiring women - increase the women in management positions to 30%
(Textbook - case)
- By applying the programs => females being senior executives is only 4% (Textbook - case)
- Ques: why did the company only want to increase women in management positions to 30%?
Why not 50% or 100%? Why should it be a limitation?
- Reasons: LO4.4 - discuss the challenges that managers face in managing diversity (Glass
ceiling - ceiling and quota mean limit)
+ Find the link between glass ceiling and gender quota
- What are the benefits and drawbacks of the restriction in hiring women?
Analysis:
According to the management textbook, the “quota” approach that Deutsche Telekom is pursuing is
increasing the number of women in management positions to 30%. By applying two programs which
are the work-family program and planning to double the number of available places in company child-
care programs. The number of females being senior executives reached the number of 4% in 2012,
which was evaluated to be a small number.

Based on the Learning Objective 4.4 where the challenges of managing diversity are discussed. It
shows that the glass ceiling plays an important role in recruiting. Glass ceiling is a term that refers to
the invisible barrier that separates women and minorities from top management positions; the cause of
glass ceiling is from biases and stereotypes about women. To illustrate this issue, after finishing an
MBA degree, the percentage of females in CEO or senior executive positions is equal to one-third of
males. Because of the perceptions that people have about women within the company, it gradually
becomes a norm where the glass ceiling will take place. The existence of glass ceilings has led to
gender quotas where there is a restriction in recruiting women.

Benefits Drawbacks

- Deutsche Telekom plans to recruit more - Deutsche Telekom plans to recruit

female university graduates so it is female university graduates, however,
necessary for them to be trained as they due to the gender quota, the females will
might not have many experiences in the perceive that there is no opportunity for
field before. Therefore, if there is a them to work in a high position in the
limitation in hiring female university company => not many females apply to
graduates, the costs for training will the company.
decrease.

4-19. What issues might Deutsche Telekom face in recruiting female university graduates? How
could they address these issues?
Outline:
- Issues in recruiting female university graduates:
+ Stereotype (Textbook - 163)
+ Discrimination (Exhibit 4-7) - Intimidation
- Solution: LO4.5 - Diversity skills training
Analysis:
Overall, there is a low percentage of women in the management positions which creates a large
gender gap in leadership. Because of this issue, Deutsche Telekom took actions to develop the
programs, also to increase and improve recruiting of female university graduates. However, this action
has caused two main issues in the workplace.

Issues Discussion

Stereotype (pg. 163) There are women who work in the company for a long time who have
enough experience in their field. However, as the problem of glass ceiling
which was mentioned in 4-18, women are still considered to be less
productive compared to men. Not only working mothers but women in
general are being judged on their ability and performance. According to
the Management Textbook, it stated that working mothers are not as
committed to their careers as men are. The perception that everyone has
about women lowers their opportunity for promotion.

Based on this point, even women who are experienced are still being
stereotyped, therefore, recruiting female graduates might be difficult.
Since females feel that there are not many opportunities for them to work
and being promoted at Deutsche Telekom as a female, they will not likely
to apply to this company.

Discrimination According to Exhibit 4-7, there is one type of discrimination which is

intimidation - overts threats or bullying directed at members of specific
group of employees. It is common in the workplace that new employees
are being bullied by old employees. The issue of discrimination does not
only happen to women but because of the perception people have about
female and glass ceiling. Females are more likely to experience
intimidation, especially females who are new and do not have much
experience in that specific field.
How to address these issues:
According to the Management Textbook, discrimination is a part of human being and it is important to
be trained on how to acknowledge the importance of diversity. Diversity skills training includes
educating employees about the importance of diversity and teaching them skills for working in a
diverse workplace. Employees will start with the diversity awareness training, they will be training on
awaring the issues of making assumptions and biases towards particular people, and look for ways to
increase their sensitivity and openness to those who are different. Diversity skills training involves
teaching employees specific skills on how to communicate and work effectively in a diverse work
environment (pg 167).

4-20. What issues might the company face in introducing changes in work-family programs?
How can these issues be addressed?

Work-family program is a basic requirement of the family and medical leave act. This program
helps and supports the employees’ family demands. It includes programs such as paid or unpaid
eldercare leave, child care resources, and referral. Organizations that offer the work-family program
believe that it will help to enhance the employee’s performance.
Answer:
Identify, analyze issues: Two major issues when Deutsche Telekom offers the work-family program
to attract and keep women in management positions:

Issues Issues analyzing

Not all women need this program - This program will be more applicable for women
struggling with work-family conflicts.
Ex: it is more suitable for women with preschool-aged
children because they might need more time staying home
to take care of their kids.

- Not all women in the company always have difficulties

in dealing with the issue of work-family conflicts.

Glass-ceiling still exists in the - Women form their beliefs that men are doing better
perception of women. (LO4 - than them, especially in management positions.
Chapter 4) → This creates an invisible barrier that prevents women
from being promoted to higher positions or better
performance at work and given chances to show their
abilities.
=> Providing work-family programs that do not help
women change their current mindsets.

→ In conclusion, introducing a work-family program might be attractive to a minor percentage

of women within the company but not all of them.

Best solution: Stop the perception of glass- - Offer educational programs for the workers,
ceiling both men and women, to be aware of the gender
inequalities within the workforce. (LO5 -
diversity skills training, page 167)

- Introduce mentoring programs that require

mentors to provide advice, constructive
criticism, and guidance to prevent misleading
 perceptions. (Exhibit 4-9)

4-21. What workplace diversity initiatives, discussed in the chapter, might be appropriate for
Deutsche Telekom? What would be involved in implementing these initiatives?
4 workplace initiatives: top management commitment, mentoring, diversity skills training, and
employees resource group.
Evaluation: based on description on LO5 → state some criteria and outcomes to compare the
suitability.

Types of Conditions to be successful Outcomes

initiatives

Mentoring - The goals of a mentoring program should - By building trust, employees

target the right group of employees. are more willing to offer
mentors regardless of their age,
- Trust and engagement building among gender, or other factors. And
employees and employers. mentors would likely suggest
optimal advice or constructive
criticism.
→ Increase employee
satisfaction.

- Aimed all employees with

high potential to move up the
organization’s career ladder and
ensured they have the
opportunity to advance.
→ Increase minority and
women representation among
managers in the workplace.
Legal aspect of A voluntary affirmative action program - Prevent actions and behavior
workplace stands on solid legal ground if: that rise to unlawful and unfair
diversity 1. An analysis reveals that existing or employment practices.
contemplated employment practices are
likely to cause an actual or potential adverse (But Deutsche’s chief
impact. executive René Obermann
said that: Taking on more
2. A comparison between the employer’s women in management
workforce and the appropriate labor pool positions is not about the
reveals that it is necessary to correct the enforcement of misconstrued
effects of previous discriminatory practices. egalitarianism).

3. A limited labor pool of qualified

minorities and women for employment or
promotional opportunities exists due to
historical restrictions by employers, labor
organizations, or others.

(According to the Equal Employment

Opportunity Commission)

Top management - Depend on top manager’s expertise and - Provide guidance and
commitment to skills in managing the workforce diversity directions to a group of
diversity individuals.
→ When employees believe
the company’s leader
supports diversity, it is more
likely that they will follow
suit

Diversity skills - Diversity training effectiveness depends - Diversity awareness

training on: training:
+ specific training methods used → Produced effects on
+ personality characteristics of those behavioral outcomes, such as
who are trained displaying more support and
engaging in less mistreatment
toward marginalized minorities.
→ But are often neglected in
diversity training research in
favor of attitudinal outcomes
(the prejudice that one feels
toward marginalized groups)
and cognitive outcomes (how
well-informed someone is
regarding stereotypes and
biases against marginalized
groups).

Business Harvard research -

how changing a few aspects of
diversity training might actually
make a difference.
Employee - Purpose should be tied to your - Seek to advance a respectful
resource groups organization’s overall mission and values. company culture and
reinforce the importance of
- Keep the employees feeling engaged. inclusion by making up
employees connected by some
common dimension of
diversity.
- Support retention because
employees are likely to stay
with the company longer if they
have built or are part of a strong
community within the
company.

Selecting Deutsche Telekom appropriate initiatives:

Initiatives Discuss

Mentoring (As PepsiCo created a leadership development program for women aimed at
helping them to boost their self-confidence and guiding them in rising up through
the organization)
Deutsche Telekom has also committed to having at least 30 percent of the
places in executive development programs held by women.

→ Adding more women to the mentoring positions will:

- Effectively offer advice and develop a high-quality, close, and
supportive relationship with protégé.
(Because a woman manager has the skills to understand people, know
their personalities, and perceive their moods help a woman create a team
of like-minded people (feminine managing skill).
- Also, women managers were significantly more likely than their male
counterparts to coach and develop others and create more committed,
collaborative, inclusive, ultimately, and effective teams (LO5 - page
156). → Better make connections and engagement among protégé,
compared to men.

(As said by Deutsche’s chief executive René Obermann, “Having a greater

number of women at the top will quite simply enable us to operate better”)

Employee - By including more women in management positions, the ERG might be

resource appropriate for Deutsche Telekom to create an open forum for new female
groups managers who share a common identity to meet and support one another in
(ERG) building their community and sense of belonging.

- Otherwise, it empowers new female employees by giving each group a collective

voice to speak with decision-makers and management. Groups are also
empowered to assemble and voice concerns as a community.
→ This initiative is highly considered for meeting gender goals.
 Phần giải thích (có thể lấy ý không cần ghi lại)

1. Not all women need this program

- The work-family program is mainly about providing women more flexible working hours so
they can spend more time taking care of their family, especially those who have small kids.
Women with preschool-aged children might need more time staying at home to take care
of their kids so they might need the program but this is not applicable for women with
older kids, it is because older kids will be more responsible for themselves and they can take
care of themselves. The benefit of the work-family program is that it helps to reduce the issue
of work-family conflict and increase productivity. However, according to the research of Joan
Williams and Heather Boushey, work-family conflict is high only in the United States as they
have longer working hours compared to workers in other countries. Therefore, not all women
in the company have difficulties in dealing with the issue of work-family conflict.
2. Glass-ceiling is still exist in the perception of women
- Work-family program creates an opportunity for women to balance between work and family.
It also encourages women to have a better performance at work and a chance to show their
ability. However, the issue of glass ceiling is still in the perception of both women and men.
Glass-ceiling is referring to an invisible barrier that prevents women from being promoted to
higher positions such as managers or executives. This occurs because many people believe
that men are doing better than women especially when it comes to the management
position. This has slowly become a norm in some countries (Japan and South Korea) and
they even object to women participating in the workforce because they think women only
need to do the housework. Due to this thinking, more women think that they are not as
capable as men and no longer confident in their abilities.
→ The work-family program might be attractive to a minor percentage of women within the
company but not all of them.

Solution:
Stop the perception of glass-ceiling:
- There should be educational programs for the workers, both men and women, to be aware of
the gender inequalities within the workforce. It is necessary for everyone to understand the
importance of both men and women in the management positions. As Telekom has
acknowledged that women in management positions even help the company to operate better.
Therefore, opportunities should be given equally between men and women in proving what
they can do. Additionally, introduce mentoring programs that require mentors to provide
advice, constructive criticism, and guidance to prevent misleading perceptions, so they will
gradually get rid of the glass ceiling thinking.

PART 2: Planning
Costco:
How is Costco’s business model different from other retailers such as Walmart and Sam’s
Club?+ Beyond lower turnover, how else does Costco benefit from treating its employees
well?
Business model
LO 9.1: A business model is how a company is going to make money.
(1) whether customers will value what the company is providing and (2) whether the
company can make any money doing that.
Differences in WALMART COSTCO
business model
1. Keep markup - Sells a wide variety of merchandise of - Using cost leadership strategy:
low => cost-low numerous brands. + Costco aims to differentiate itself from
Example: Walmart has a wide number of other retailers by buying items in bulk from
(1) whether toothpaste brands, but Costco only has a limited number of brands in order to
customers will four toothpaste brands. take advantage of purchasing discounts
value what the from the manufacturers.
company is - The average markup at Walmart is 24% - The average markup on a Costco item is just
providing 11% according to fortune reports → Costco’s
markup is even lower than Walmart.

WHY?

=> Costco restricts their product offerings because

they can acquire their items in bulk at a lower
price and pass the savings on to their consumers
when they deal with a small number of companies
=> According to the Costco website, the firm can
provide the best value to members by carefully
selecting items based on quality, price, brand, and
features.
2. Treating - Aggressive control of employees’ - Better employees’ benefits (competitive
employees well benefits and pays advantage)

- Saving the company in recruiting and - Evidence: The company pays its employees on
training expenses average 40 percent higher than competitors and
(1) whether => Because of internal recruiting, the offers health care insurance to all employees who
customers will percentage of employees turnover in work more than 20 hours per week (textbook)
value what the Costco is less than 5%
company is → How does it benefit Costco? (answer for 9-
providing Evidence: Walmart turnover is 44% a 20)
year, close to the industry average
according to Harvard Business Review. + Lower turnover rate

evidence: 82% of Costco employees have

health-insurance coverage, compared with
less than half at WalMart. (HBR) → saving the
company in recruiting and training expenses
(textbook).

+ Have a loyal and productive

workforces who are always ready to
give their customers the best
shopping experience → increase
customer satisfaction

Evidence:
 → A Verint Experience Index report found that
Costco, Amazon and Apple rank highest in
customer satisfaction out of the top 25 retailers
(2021)

→ While Sam’s Club and Costco generated

$37 billion and $43 billion, respectively, in
U.S. sales last year, Costco did it with 38%
fewer employees (HBR).
3. Volume-base Costco only carries four brands of Sell a limited number of brands => Increase sales
toothpaste, compared to about 60 brands volume that leads to purchasing discount
you’d find on the shelf at Walmart
(2) whether the
company can
make any
money doing
that.

9-21.
The extent to which Costco sells cars is determined by their familiarity with the retailer. Cars
are only one illustration of Costco's vast selection. The company hopes that by selling high-
ticket items that people often buy in person, it will be able to attract more customers to the
store, resulting in increased membership and sales. Costco wants to become the go-to
location for these kinds of purchases.
9-22 Costco competes in a fiercely competitive and rapidly changing market. Costco will
have to remain ahead of industry trends and new technology to maintain its competitive
advantage. Some of the disadvantages of selling online include the ease with which
customers may compare prices and the challenges of transporting fresh produce and frozen
goods, both of which are sold in Costco shops. Costco's volume sales may be more
challenging to achieve in an online store where transportation costs must be considered into
price models. Furthermore, Costco might have a harder time capturing the spontaneous
sales that assist boost in-store sales.

1. Fear of Failure: ✔

10-11: Do you think someone could be an immediate success when starting a business? Or is a
first failure really necessary?

Answer 1: Business failure is the ending of a business due to the lack of goal attainment, which can
mean low levels of revenue and profits, or not meeting investors’ expectations.
No one starts a business expecting to fail. Starting a business can be a lot of fun and exciting. Success
requires a lot of planning and starting the business the right way. There are still many new
entrepreneurs who can still be successful. Take an example to prove it. Steve Jobs went on to have an
unbelievable career. Jobs managed to obtain financing, distribution, and publicity for the company,
Apple Computer, incorporated in 1977—the same year that the Apple II was completed. The machine
was an immediate success, becoming synonymous with the boom in personal computers. In 1981 the
company had a record-setting public stock offering, and in 1983 it made the quickest entrance (to that
time) into the Fortune 500 list of America’s top companies.

The fact is, most entrepreneurs aren’t going to be successful with their first idea or venture (PM
Textbook) and about half of all new businesses survive 5 years or more and one-third survive 10 years
or more. As can be seen, the success rate of new businesses is quite low. According to Bloomberg,
only 20 percent of new businesses find success within their first eighteen months. Data from
entrepreneur.com and the Small Business Administration suggest that only 30 percent of new ventures
succeed to the ten-year mark.
For example: Jack Ma is the wealthiest person in China. He is the founder of Alibaba, the world’s
largest e-commerce company. However, at one point he couldn’t even get a job. After failing the
college entrance exams three times, his decision to just get a job instead didn’t work out either. He
was turned down by 30 companies, including KFC. Eventually he launched Alibaba, creating not only
a job for himself, but also jobs for more than 30,000 other people. Quirky is another case that was
launched by Ben Kaufman in 2009, and was an initial failure. Quirky struggled to sell many of the
products at a sustainable profit margin and filed for bankruptcy in 2015 after investors stopped
funding the venture. Fortunately, one of its businesses, the smart-home business section, was spun off
and sold as Wink in September 2017. The company was rebooted by a new set of entrepreneurs with a
better business model.
Those who are ultimately successful are those who stand back up, dust themselves off, learn
something from the failure, and try again (PM, textbook). They don’t attribute failure to a fixed trait;
rather, they are more likely to analyze a failure more deeply and more effectively apply learning to the
next problem or challenge.
What Failure Teaches Us
There is only perceived failure, or obstacles that can become steps up the ladder to a better outcome.
The importance of failing lies in learning how to get back up again.
Converting Lessons Learned to Success
Converting failures to lessons often led them to higher success than they had imagined. Entrepreneurs
who can turn their obstacles into positive lessons can resurrect from failure.
As Eric Ries dove into failure with his first company and felt the deep pain and disappointment of
having to let go of an unsuccessful idea, he applied his lessons to create his new virtual reality
company IMVU. IMVU then became a very successful experiment from which he derived the lean
startup method. He was able to pinpoint his shortcomings and find ways to better himself and his
performance. With his new company, he was able to get the product to market faster without it being
perfect and ask for much-needed feedback from customers that he hadn’t received before.

Answer 2: DEFINITION
Business failure is the ending of a business due to the lack of goal attainment, which can mean low
levels of revenue and profits, or not meeting investors’ expectations.
Do you think someone could be an immediate success when starting a business?
Someone could be an immediate success when starting a business
Principle :
In fact, they are often told to embrace failure, that it is an important part of the entrepreneurial
process. You must fail before you can succeed! But is it true? Do you really have to experience failure
before you can find success?
My answers:
No one starts a business expecting to fail. Starting a business can be a lot of fun and exciting. Success
requires a lot of planning and starting the business the right way. Entrepreneurship is easier if you
start your business the right way.
According to Bloomberg, only 20 percent of new businesses find success within their first eighteen
months. Data from entrepreneur.com and the Small Business Administration suggest that only 30
percent of new ventures succeed to the ten-year mark. As such, there are still many new entrepreneurs
who can still be successful. Take an example to prove it. Steve Jobs went on to have an unbelievable
career, eventually forming the Apple Computer Company with his childhood friend and electronics
expert Steve Wozniak. So he became a billionaire for the first time.
Someone could NOT be an immediate success when starting a business
Principle :
The fact is, most entrepreneurs aren’t going to be successful with their first idea or venture. Those
who are successful ultimately are those who stand back up, dust themselves off, learn something from
the failure, and try again (PM Textbook)
My answers:
According to the PM textbook, about half of all new businesses survive 5 years or more and one-third
survive 10 years or more.
As can be seen, the success rate of new businesses is quite low. And, not every new business is
successful, they have to go through failure to succeed. Take an example to prove it.
Before starting Microsoft, Bill Gates and friend Paul Allen launched Traf-O-Data, a company that
used a computerized microprocessor to analyze data from traffic counters that were placed on roads.
The intent was to support government traffic engineers’ efforts to optimize traffic and end road
congestion. But the equipment did not work correctly during their big presentation to local county
officials, and the company eventually folded. Good thing, as the pair did go on to create the software
used so widely around the world
Or is a first failure really necessary?
Principle :
Businesses don’t attribute failure to a fixed trait; rather, they are more likely to analyze a failure more
deeply and more effectively apply learning to the next problem or challenge. Those who are
successful ultimately are those who stand back up, dust themselves off, learn something from the
failure, and try again. (PM, textbook)
What Failure Teaches You
Some would argue that, in reality, failure does not exist. There is only perceived failure, or obstacles
that can become steps up the ladder to a better outcome. The importance of failing lies in learning
how to get back up again. As Eric Ries dove into failure with his first company and felt the deep pain
and disappointment of having to let go of an unsuccessful idea, he applied his lessons to create his
new virtual reality company IMVU. IMVU then became a very successful experiment from which he
derived the lean startup method. He was able to pinpoint his shortcomings and find ways to better
himself and his performance. With his new company, he was able to get the product to market faster
without it being perfect and ask for much-needed feedback from customers that he hadn’t received
before.
Converting Lessons Learned to Success
Most successful business owners will tell you that success didn’t come to them easily. They had to
persevere in pursuit of their goals to attain them. Converting their failures to lessons often led them to
higher success than they had imagined. Entrepreneurs who can turn their obstacles into positive
lessons can resurrect from failure.
___________________________________________________________________________

LO 10.2 EXPLAIN what entrepreneurs do in the planning process for new ventures ( 369 ref
Entrepreneurs must identify environmental opportunities and competitive advantage. They must
research a venture’s feasibility, first generating and then evaluating ideas. A feasibility study is an
analysis of the various aspects of a proposed entrepreneurial venture designed to determine its
feasibility. This analysis includes looking at the competitors, determining how to get financing, and
developing a business plan. The business plan should include an executive summary, an analysis of
the opportunity, an analysis of the context, a description of the business, financial data and
projections, and supporting documentation. The sharing economy that is emerging is creating many
new entrepreneurial opportunities through people sharing something they own or providing a service
for a fee)

LO 10.3 (pg 357 ref Once the start-up and planning issues for the entrepreneurial venture have been
addressed, the entrepreneur is ready to begin organizing the entrepreneurial venture. Then, the
entrepreneur must address five organizing issues: the legal forms of organization,
organizational design and structure, human resource management, stimulating and making
changes, and the continuing importance of innovation)

LO 10.4 Entrepreneurs lead organizations (pg 370 ref Entrepreneurs are often persistent
problem solvers; are moderate risk-takers; possess great persistence, resourcefulness, the desire
and ability to be self-directed; and have a relatively high need for autonomy)

LO 10.5 how managers control organizations under different circumstances (pg 370 ref
Entrepreneurs must manage growth through planning, organizing, and controlling for growth-
manage downturns- determine that it is time to exit a venture at some point-value the business
and consider a variety of other important factors in the process)
_______________________________________________________________
LO 9.1(pg 332 ref A business model is how a company is going to make money.
Consider several businesses from which you purchase products or services on a regular basis. Identify
the business model for each business . Business model is a crucial factor that determines whether an
entrepreneur venture is successful or not. So entrepreneurs can experience failure if they choose
inappropriate business model)

● Zara example ( pg 336 ) - entrepreneur success at the first time.

● Jayna Cooke example ( pg 361 ref Cooke had to continually look for ways to keep her
company competitive. The company’s business model was not working) - entrepreneurs do
not succeed at the first time.

=> Strategic management involving all the basic management functions - planning,
organizing, leading, and controlling. They’re the plans for how the organization will do
whatever it’s in business to do, how it will compete successfully, and how it will attract and
satisfy its customers in order to achieve its goals.

10-10. Why do so many entrepreneurs experience failure? (LO)

The factors leading to entrepreneurs experiencing failure could occur in the 4 functions that
should be implemented by all entrepreneurs.
Functions Issues leading to failure

Planning issues Identify environmental opportunities and competitive

advantage ( LO 10.2)

- Entrepreneurs cannot find their competitive advantage to

survive in the environment and reach to the long-term success
of the venture (Ch 10, pg 351)-know where we stand and the
risk
=> The risk is time speed: when entrepreneur don’t want to take
time on planning and loose opportunities
If they are not plan seriously: identify environmental
opportunities, they can not recognize risks so they will fail

Organizing issues This is the way how we implement planning (LO 10.3)

- Entrepreneurs cannot decide the appropriate organizational

structure which can lead their venture to the chaotic situations
(Ch 10,pg 359)

Leading issues - Because of constraints of the complexity of the dynamic

business environment

- Entrepreneurs do not have the proactive personality which can

help them search for opportunities and act on those
opportunities to reach the success (Ch 10, pg 362)

Controlling issues - Entrepreneurs can fail on recognizing the crisis situation to

immediately give out serious responses, which can lead them to
failure. (Ch 10,pg 368)
- Entrepreneurs do not know how to deal with the downturn or
crises of the venture. In particular, they do not apply the
Feedforward control to form up-to-date plans that can provide
them fundamental details about their venture (e.g: cash flow,
costs, debt,etc.) Without this plan, entrepreneurs do not have
the specific details for controlling the fundamental and critical
aspects of running the venture (Ch 10,pg 368)
The less they plan, the more risky the venture, more uncertainties. So that's how they need to
learn to plan better and better. They keep redoing the functions, changing, learning for.

10-11. Do you think someone could be an immediate success when starting a business? Or is a
first failure really necessary? (LO)

BUSINESS-FAIL/UNFAIL
FAIL- The fact is, most entrepreneurs aren’t going to be successful with their first idea or venture and
about half of all new businesses survive 5 years or more and one-third survive 10 years or more.

● Jack Ma example (pg 373)

UNFAIL- Bloomberg, only 20 percent of new businesses find success within their first eighteen
months.

● Steve Jobs example - Apple II was an immediate success-becoming synonymous with the
 boom in personal computers.

=> If entrepreneurs don’t fail at first but they fail in the future, entrepreneurs who can turn their
obstacles into positive lessons can resurrect from failure. Those who are ultimately successful are
those who stand back up, dust themselves off, even if they are or are not at risk-over, they also learn
something from the failure, and try again (PM, pg 373). Businesses don’t attribute failure to a fixed
trait; rather, they are more likely to analyze a failure more deeply and more effectively apply learning
to the next problem or challenge.

Reasons: According to the Bureau of Labor Statistics (BLS), approximately 20% of new businesses
fail during the first 2 years of being open, 45% during the first 5 years and 65% during the first 10
years. Only 25% of new businesses make it to 15 years or more.

10-12. Is a growth mindset something you are born with? Or, can you develop a growth
mindset? (LO)
A growth mindset is something that you can develop if you are not already born with it.
+ A fixed mindset assumes failure means lack of ability then it leads to being more
risk averse and eventually giving up (the case)
+ To develop a level of growth mindset, they must not attribute failure as a fixed
trait and learn as much as possible from it.
But those who are ultimately successful are those who stand back up, dust themselves off, learn
something from the failure, and try again (PM, pg 373). Furthermore, with experiences and
knowledge, one can have a growth mindset. So in order to have more opportunities for success , it is
essential to turn from a fixed mindset to a growth mindset. Growth mindset helps a person to take
higher risks and never give up on their focus. The entrepreneur must use a method to value the
business and consider a variety of other important factors in the process.
● Jack Ma example (pg 373)
● How can we turn from a fixed mindset guy to a growth mindset guy ?
+ As they have learnt from the failure, they should have known to be prepared for the
controlling issues that can suddenly happen in order to survive and prosper in both
short run and long run of the venture by managing growth, downturn and exit of the
venture. (textbook, Ch 10)
LO 10.5
Way to prepare for controlling issues Its benefits on entrepreneurs’ career

Managing growth: plan flexibly, have - Financial structure: Help businesses to manage their growth effectively and
appropriate financial structure, plan for efficiently,
employees, provide training and create - Plan the types and number of employees: prepare for increasing workload
enhanced culture - Prepare suitable training: help employees to handle pressure and associate with
growing organization
- Create positive and growth-oriented culture: the culture should embrace and
support a climate in which organizational growth is viewed as desirable and
important → the employees can be committed to what the venture is doing to
enhance the ultimate success (can use Exhibit 10-5 to give out suggestions to
achieve a growth-oriented culture)
 Provide appropriate solutions immediately
Managing downturn: recognize the crisis => Avoid the failure
situation and deal with the downturns

Exit the venture ( PM, pg 369) - Give the entrepreneurs the chance to maximize the potential return and capitalize
financially on the investment in the venture
- Allow the entrepreneur to pursue other business or personal opportunities

2. Global Supply Chain:✔

Issue - cannot produce and deliver to the customer in global supply chain
Cause of Issue:
● Disruption to material supply
● Cannot get workers
● Cost over budget
Conditions - managers need to stay alert to environmental changes, respond as needed - the authority
delegated to managers to close the ground (operations). Decision-making role delegated, flatter
organization.
________________________________________________________________________
You see the challenges associated with a global supply chain; what are some of the benefits of it? (1)
What can managers do to minimize the impact of such disruptions?(2)

(1) Benefits: low-cost, greater variety, international customers, etc in global supply chains
(2) Minimize the impact of such disruptions: prepare for plans, schedules, and budgets
LO8.1 purposes of planning (pg 304 ref reducing uncertainty, minimizing waste and redundancy, and
establishing the goals or standards used in controlling)
Chapter 10, pg 361- Managers can do:
● simplifying the fee structure.
● explain the change to employee - encourage change efforts
● guide the actual change process as changes in strategy, technology, products, structure, or
people are implemented.
● gets needed resources, and does whatever else is necessary to get the change(s) implemented
To minimize the impact of such disruptions, managers can do
● Stockpile supplies
● Diversify the Sources of Supply
● Create a pool of backup suppliers.
● Controlling Product Demand
● Boost the Supply Chain's Core

As Chapter 9 asks, how can managers plan effectively in dynamic environments? (5) + How might
 managers use scenario planning in preparing for such disasters? (Scenario planning is discussed in
the Planning and Control Techniques module) (6)

Cause and effect analysis: fishbone diagram (5) + (6) + (2)

Cause of issue Impact on company* Solutions

Disruption to Limits on production (penalties from Create a supply chain contingency plan.
material supply buyer-money), need approval from the Build up inventory.
buyer on alternative material supply
Conduct a supply chain vulnerability
(time, people), affect by import
audit.
regulations - new approval needed
(time, money, people) Identify backup suppliers.
Diversify supply base.
Partner with a logistics expert.
Adopt risk evaluation tools.
Raise the price of the scarcer product
and lower the price of others to shape
customer demand.

Cannot get Limits on production (penalties from Plan for recovery

workers buyer-money), affect on quality - more Companies should think beyond short-
reworking (money, reputation) term disruption to long-term company
survival. Be sure to keep expertise in
house, Sheffi said, through continuity
of pay, taking care of families, and
allowing for part time work.
A long-desired reorganization

Cost over budget Constraints on buying new materials, Build a contingency budget
equipment, alternative solutions. Bank loan
Cutting non-performing products and
customers.

How to plan? (5)

Example Hermes case - scenario planning tool, real-time decision-making.
LO8.4 - planning in dynamic environments - type of plan - specific, flexible (pg 301 ref. In an
uncertain environment managers “should” develop plans that are specific, but flexible.
Definition-(pg 259,chapter 7)
In dynamics environments, managers should:
- Develop plans that are specific, but flexible. (LO 8.4)
+ Specific plans are clearly defined to eliminate problems with misunderstanding.(LO
8.2)
+ Flexible plan is a directional plan that sets out general guidelines (LO 8.2)
- Developing Strategic Flexibility-the ability to recognize major external changes. (Exhibit 9-
5)
- The plan should not be impossible to change → Stay alert to environmental changes.(pg
301)
- Teach lower organizational levels how to set goals and to plan in case there’s little time for
 goals and plans to flow down from the top. (pg 301)
- Use environmental scanning: Screening information to detect emerging trends. Gathering
information about competitors that allows managers to anticipate competitors’ actions. (pg
301-302)

*How? (6)
Goals- organizational performance, i.e. profitability, revenue, costs.

Negative impacts

Avoid by:
1.scenario planning
2.real-time decision-making supported by analytics/ big data
3.Environmental scanning, conditional on managers ability (skills) to respond and having authority.
What types of plans would be best in these unplanned events? (3)
Exhibit 8-1-Types of Plans
Breadth Time frame Specificity Frequency of Use

Strategic long-term plan Directional plan Single-use

Apply to the entire -Cannot keep track of -don’t lock managers -one-time plan
organization and sudden changes into specific goals or specifically designed
establish the courses of action. to meet the needs of
organization’s overall Inappropriate in a unique situation.
goals dynamic environment -weighed against the
lack of clarity of appropriate in
Inappropriate in specific plans. dynamic environment
dynamic environment
Appropriate in
dynamic environment

Operational Short-term plan Specific Standing

eliminates ambiguity handle issues under its
guide decisions about -Use any planning and problems with ethical code of
new products and time frame they want misunderstanding conduct
business units to for activities
support the strategic Inappropriate in Intuitively, it would performed repeatedly
plan dynamic environment seem that specific
plans would be Inappropriate in
strategic plans are preferable to dynamic environment
broad while directional or loosely
operational plans are guided plans.
narrow.
Appropriate in Appropriate in
dynamic environment dynamic environment

=> In unplanned events, single-use plans (for unique situations) are suitable to combine with
operational plans (for specific areas) and specific plans (identify and directly solve problems).
Therefore, the plans would be best in this instance is single-use plan + operational plan + specific
plans
 Could SWOT analysis be useful in these instances? Explain (4)

USEFUL USELESS

- Provides a good all-around view of the - The drawback- Swot rarely deployed at
company's current and forward-looking lower than the organization level- may
situation (Small Business Chron, 2020) lead to wrong strategies for the whole
- a contingency plan in case the “threat” organization.
factor actually happens. - Because of biases, managers may be
(LO 9.2) hindered from coming up with effective
- After completing the SWOT analysis, plans and strategies
managers are ready to formulate - No matter how effectively an
organization has planned its strategies,
appropriate strategies—that is, strategies
performance will suffer if the strategies
that aren’t implemented properly (pg 319).
(1) exploit an organization’s strengths and
external opportunities,
(2) buffer or protect the organization from
external threats
(3) correct critical weaknesses.

SWOT analysis provides internal and external analysis of various parameters with respect to
organisation in a dynamic environment.

STRENGTH.

This analyses internal parameters of organisation how to tackle different situations and different
competencies of organisation. For example efficiency of production units, better performance of
inventory units etc.

WEAKNESSES It deals with various weaknesses of organisations like expenditure, overproduction,

human resource management technological updation etc

OPPORTUNITIES

It shows the external environment provides opportunities for the patient to be here and grab all the
possible opportunities. Managers have to be always ready enough competent to grab all the
opportunities to expand the reach of the organisation and grow sustainably.

THREATS

Managers should be always careful about various threats from external environments like
competition, various discounts offered by competitors, various environmental and government
regulations related to the activities of the organisation.

In this way SWOT analysis always provides input for managers to effectively manage performance of
the organisation in a dynamic environment.
 PART 3: Organizing

1. Pfizer:
11-13. Describe and evaluate what Pfizer is doing with its PfizerWorks.
Outline:
- Explain the program “Magic Button” (Textbook - case)
- Organizational design - Boundaryless Organization (pg. 398)
-------------------------------
a. Describe:
Pfizer is a global pharmaceutical company and they are looking for ways to help the employees to be
more efficient and effective. Therefore, they have created the program called “PfizerWorks” which is
also known as the “Magic Button”. This program allows employees to focus on a specific task without
the interruption of other time-consuming tasks. In order to get rid of time-consuming tasks, Pfizer has
collaborated with other external organizations, specifically the India service-outsourcing firms. The
request for completing certain tasks will be sent to those companies and the costs will be charged to
the employee’s department. To illustrate this, the executive director for global engineering of Pfizer,
David Cain said that instead of spending 6 months to go through the spreadsheets and finish a report,
he gave the Indian team the spreadsheets which they finished within a month, along with the report.
b. Evaluate
Pfizer company has a structural arrangement in which work is getting done by developing a massive
collider, this is a type of contemporary organizational design called “Boundaryless Organization”. Its
design has no limitation or any external boundaries imposed by a predefined structure. As being an
unstructured organization, Pfizer has looked for new ways to increase the efficiency and effectiveness
of their employees by opening innovation which opens up the search for new ideas beyond the
organization’s boundaries and allowing innovations to easily transfer inward and outward (PoM
p.399). By using this process the time spent on analysis of data has been reduced, also has many
financial benefits and employees also get rid of their boring work => implementing the Pfizer Work
effectively and efficiently

11-14. What structural implications - good and bad - does this approach have?

Elements Case Application Good Bad

Work Specialization The Pfizer company did It makes efficient use of the Employees will only master
mention each task that diversity of skilled workers one skill as they only do one
employees are involved in that have to do the task. Also, specific task. In other words,
 which includes creating since each employee only they are likely to lose the
documents, typing notes, needs to do one task then they ability to perform other tasks.
doing research, manipulating can focus more on the quality
data and scheduling meetings. and work output which
increases productivity.

Departmentalization

Chain of Command

Span of Control We find out that Pfizer faces a The trend in recent years has The traditional view was that
wide span of control problems been toward larger spans of managers should not—directly
because work is done by staff control as it speeds up supervise more than five or six
in another company. They are decision making, increases subordinates. Although it is
also likely to face minor faults flexibility, gets closer to the likely to be more efficient to
in maintaining job tasks, customers, empowers the organization, it is not
including typing errors, employees and reduces costs. always effective.
mistakes in manipulating data;
those require individual
attention to check the support
work done by the contingent
workers for ensuring the
quality of given jobs.

Centralization and The management style of The advantage of this element As an employee will be fully
Decentralization
Pfizer tends to lean towards is that employees will have in charge of the task, they will
decentralization. Employees higher responsibility to their make their own decision on
are allowed to send the task as they have to make how the task will be done.
request to external their own decisions and it is Therefore, if they fail to
organizations to accomplish also an opportunity for them perform the task well, it might
their requirements. By doing to train their decision-making highly affect their department
this, employees will have skills. as well as the company’s
more time to concentrate on performance.
the core competencies.

Formalization Pfizer has less formalization Many organizations rely less Less restriction on rules might
which means employees have on strict rules and cause the employees to not
more discretion in how they standardization to guide and obey the rules.
do their work. So instead of regulate employee behavior.
 following every step on how Employees are given
the work should be done, sufficient autonomy to make
Pfizer allows employees to some decisions that they feel
decide what tasks they want to are best under the
perform and how to perform circumstances.
it.

11-15. Do you think this arrangement would work for other types of organizations? Why or why
not? What types of organizations might it also work for?
Outline:
LO11.4 Describe traditional organizational design options
Types of organizational structure of Pfizer:
- Simple structure: an organizational design with little departmentalization, wide spans of
control, centralized authority, and little formalization.
- Functional structure: An organizational design that groups together similar or related
occupational specialties.
- Divisional structure: An organizational structure made up of separate, semi autonomous units
or divisions.

Pfizer has functional and divisional structures where each department will be in charge of contacting
the India service-outsourcing firms and pay the costs themselves but not the company. The
PfizerWorks program is more appropriate with a company that is flexible and loose with the
restrictions and rules, it is because PfizerWorks gives the employees authority to make their own
decisions and choose which tasks to send to the Indian team which means there will be no specific
procedures to follow on how to complete the tasks. This program can be applicable to the
boundaryless or organic structure where there are less restrictions and the management style of these
two structures is leaning towards decentralization where more lower-level employees provide input
and actually make decisions
11-16. What role do you think organizational structure plays in an organization’s efficiency and
effectiveness? Explain.

Definition: Efficient + Effectiveness (page 44)

★ Pg 404
● mechanistic types of structures -controlled structure -A simple structure- A
functional structure- A divisional structure
● organic types of structures -The matrix structure -a team structure-- A project
structure -a predefined structure -A boundaryless structure
★ Eg Summary 11.3 An organic structure is most effective with unit production and process
production technology. A mechanistic structure is most effective with mass production
technology (LO 11.3)
★ Condition : unit production - An organic structure + mass production - A mechanistic
structure
★ Types of production: single production compared to mass production
★ Factors:
- Factory (mass production)
- Tailor (make one at a time)

=>Eg: They both make clothes but depending on the factors, they produce goods in different numbers.

2. Maersk China:
Why does human resource management represent one of the major challenges faced by foreign
companies entering the Chinese market?
Human resource management represents one of the major challenges faced by foreign companies
entering the Chinese market. According to the Principle of Management: It’s important that managers
in other countries be familiar with the specific laws that apply there. Further, managers of
multinationals must understand the variety of federal laws that apply to employees in every country
where their firms operate. The HR challenges that foreign companies are facing can generally be
grouped in five categories
-Legal:
According to PoM it is one of the external factors that most directly affect the HRM process.
According to official government statistics, 80% of all foreign firms in China were unionized by the
end of 2008. Getting employees transferred from other cities might require as many as twenty
approvals (Tsang, 2010)
-Understanding the Chinese:
Business Etiquette & Ethics: There’s still a great number of people who cling to the old “iron rice
bowl” mèn tá lì tì and expect their jobs to last for a lifetime and provide them with steady income as
well as the “Face” concept that be attended to in interaction with Chinese
Assertiveness and Accountability: As much as 65% of western managers in China identify them to be
the most challenging behavioural differences to overcome in Chinese employees that cause much
friction within cross-cultural teams.
-HR Administration:
Lack of references and background checks: A study conducted by Kroll, shows that an alarming 20%
of job candidates have discrepancies in their resumes and applications
Shortage of talent: China will need 75000 people in managerial positions and currently has only 5000
people on the labour market (study from Farrell & Grant, 2005). Only about 10% of Chinese
candidates for jobs in key areas such as finance, accounting, and engineering are qualified to work for
a foreign company, according to one McKinsey study
Pressure to hire: companies in China are sometimes being exposed to pressure from the government
to hire more employees than they actually need.
Labour Cost: According to the textbook, personnel costs are going up. In a BCG study, in 2015,
China's average wage rate was 69% of the U.S. The Chinese regulation says that wages in a joint
venture must be 120% to 150% higher than state owned enterprises in the same line of business and
locality. Localisation is increasingly more common among foreign owned companies.
Turnover and Retention: According to Principle, once the manager is hired, a series of efforts needs to
be made to retain the employee. Based on report findings from a survey covering 19 industries by one
of China’s largest human resources service providers, the average employee turnover rate for
privately-owned companies in China for 2010 was 18.5%
Termination, Severance and Labour Disputes: According to the regulations the venture cannot dismiss
an employee for its own purposes and thus needs to inform the in charge department and the local
labour bureau píu rươ. Thirty days' notice is required for both the employee and any relevant labour
union.
-Managing & Developing Chinese Employees:
On-boarding and Training: Knowledge and education are highly valued by Chinese employees and
that also address the talent shortage and retention challenges.
Teamwork: Management styles often be adjusted to address cultural differences, lack of proper
communication, difference of communication styles, working styles and quality of work, as well as
difference in time zones.
Succession and Career Planning: multinational companies typically fill their top positions in China
with expatriates from headquarter offices overseas, leaving few opportunities to local managers. This
creates a “glass-ceiling” for Chinese managers and it could be a major challenge to retention.
- Organisational Development:Common problems that agents face are:

★ Chinese partners are unwilling to communicate with the foreign board of directors or
general manager;
★ Chinese managers, responsible for communicating to the workers, are ma níc pu láting the
messages and blocking change in ní sơ tiu
★ Tough government regulations are hindering change.

___________________________________________________________________________

Maersk China (page 474)

Issues: Challenges foreign managers face with
Causes: Distance, cultural and language differences, as well as difficulties in relocating.
Conditions: solve HRM problems: 5 categories: legal, understanding the Chinese, HR Administration,
Managing & Developing Chinese Employees, Organisational Development, Organisational
 Development

13-13. Why does human resource management represent one of the major challenges faced by
foreign companies entering the Chinese market?

LO 13.1 the importance of the HRM process (pg 469 ref source of competitive advantage,
organizational strategies, impact organizational performance - Exhibit 13-2 HRM Process)

Cause of issues Impacts on HRM

Traditional advantages Its abundant pool of cheap labor is rapidly shrinking, and personnel costs are going up (PM)
(Labour Cost)

The pool of local talents has dried up and importing managers from overseas is not as simple
Shortage of talent as it may appear ( PM )
=>The availability of a qualified manager to lead operations

A complicated business Even organizing a banquet can be a daunting experience for someone not acquainted with the
environment - culture and local culture (PM)
language skills => Lack of references and background checks: 20% of job candidates have discrepancies in
their resumes and applications (Kroll)

Pressure to hire It is expensive and painfully slow to hire local talents and to train them (PM)

Turnover and Retention => Termination, Severance and Labour Disputes

- Loyalty
- Reward measure

Legal Getting employees transferred from other cities might require as many as twenty approvals
(Tsang, 2010)

Understanding the Chinese “Face” concept=> negatively impact on interaction

(Business Etiquette &
Ethics)

Managing & Developing - On-boarding and Training

Chinese Employees - Teamwork
- Succession and Career Planning

13-14. What are the main issues expat managers generally face?

LO 13.1 High-Performance Work Practices (Exhibit 13-1) issues involving employees; improving the
knowledge, skills, and abilities of an organization’s employees; increasing their motivation; reducing
loafing on the job; and enhancing the retention of quality employees while encouraging low
performers to leave (pg 446-447).

LO 13.2 External factors that can affect the human resource performance (demography: foreign
managers).

Difficulties in integrating in the local environment - adapting western work practices to Chinese
standards are among them. Expat managers, the usual choice for the top management and often for the
middle management too, present other challenges, including Cultural fluency and language skills in
the complicated Chinese business environment. Even organizing a banquet can be a daunting
experience for someone not acquainted with the local culture( pg 474)

13-15. Why don’t foreign companies simply hire local staff instead of reaching out for foreign
managers?

Demographic shifts have been a cause for concern. A shortage of skilled workers is partly due to the
aging Chinese population created by 30 years of its one-child policy. (Textbook page 451)

There were none capable of successfully holding the position among locals and MNCs were obliged
to hire foreigners at very high wages. Due to hiring local staff, it may be very expensive and the
process painfully slow, especially if the hiring is done privately bypassing the expensive, government-
owned labor center, FESCO. Furthermore, once the manager is hired, a series of efforts needs to be
made to retain the employee(pg 474). Recently things have started changing, given the fact that more
and more Chinese managers are able to speak English and are educated abroad.

LO 13.3 “job analysis” -”job description” - “job specification” are the fundamental factors for HR and
recruitment-selection (pg 453-454)

13-16. What advice would you give companies such as Maersk on their human resource
management policies?

LO: 13.3 Explain the different types of orientation and training (pg 470 ref “realistic job preview”-
which in turn should increase employee job satisfaction and reduce turnover)

- Given to the young generations of Chinese managers, a lot of them educated abroad and
English speakers, new opportunities are now opening up to MNCs, both in terms of lower
costs but also for a better match with market requirements. (LO: 13. 3)
- According to the learning outcome 13.6 : Reassigning roles according to individuals’ talents
and back- grounds: The Maersk company should do top to bottom optimization when hiring
its employees. For example, how well are they qualified and the quality of work should be
checked. Further, the company should shift to technology which will reduce the labour and
will help them avoid their business abroad

- Moreover, due to the innovation of the technology, the significant drawback on the
expensiveness and time consuming of educating employees abroad can be reduced by online
learning. According to the learning outcome 14.4, technology has created a 24/7 work
environment as it is possible to stay connected around the clock and work from anywhere.
Social media allows managers to communicate through one channel and encourages sharing
experiences. So, Maersk can provide native interns, or current managers, management courses
in the form of online learning so that they can perform in the company and study at the same
time, reducing the costs of travelling abroad and human resources of the company.

- Retention and Turnover: To retain employees, Maersk should respect and satisfy every single
individual in the company. Because Chinese value personal relationships more than company,
upsetting one person can cause much loss in retention rate. To satisfy them, the best way is to
compensate them because according to the learning outcome 13.5, a survey showed that 71
percent of workers surveyed said their benefits package would influence their decision to
leave their job. Organizational compensation can include many different types of rewards and
benefits such as base wages and salaries, wage and salary add-ons, incentive payments, and
 other benefits and services. In this case, Chinese employees prefer monetary compensation, so
Maersk China should consider spending part of their budget to reward their employees.

3. GG India: ✔
Part 4, A Manager’s Dilemma, page 482 Discuss the questions “How would you gauge a
potential hire’s ability to work as a team member?” and “How would you maintain your team’s
innovation when new engineers and designers join the group?”
LO 12.3 - team characteristics for effective problem-solving
Challenge to maintain innovation performance of teams.
Innovation = finding new ways (products) to satisfy unmet customers needs.
Ch 10 pg 344 “ organizations that pursue opportunities ar characterized by innovative practices”
Innovation = problem-solving
WL Gore case (pg 438-439) states “ self-managed teams are most appropriate in organizations where
innovation is strategically important.
- Connect with
Google case which states - “ For an organization like Google, innovation is critical to its success”
Conditions for teams to maintain high innovation performance a.k.a effective in innovating :
Responsive to changing situations
Flexible
Mutual trust
Responsibility for decisions made
Unified commitment, etc Exhibit 12-9
____________________________________________________________________________

Factors that enable high innovation performance Impact on innovation at Google India
in teams

Mutual trust Challenging diversity of employees

Possible negative impact

Responsibility for decisions made Conditional on whether self- managed teams are
encouraged, and conflict management process is
commonly shared by members
If yes, then positive impact

Unified commitment Conditional on group forming process.

If process follows each stage (see LO12.1), then
positive impact

Actions (based on evaluation findings above) with justification

1.Encourage conflicts to enable optimal deliberation of innovative ideas
2.Encourage group decision-making ( pg 422). However, there are some disadvantages, more time is
taken to arrive at decisions. But the decisions are often effective - which is likely to lead to more
successful innovations.

PART 4: Leading

1. Amazon: ✔

14-13. Can a manager provide honest feedback to employees without being confrontational?

LO 15.2: Explain the role that attitudes play in job performance.

LO 15.4: Describe perception and factors that influence it.
LO 14.3: Explain how communication can flow most effectively in organizations.

Definition of feedback: Information about reactions to a product, a person's performance of a task,

etc. which is used as a basis for improvement.

Definition of confrontational: Tending to deal with situations in an aggressive way; hostile or

argumentative

Issue:
+ Intentional or confrontation in giving feedback

Cause:
● Factors of Iceberg (Ex 15.1, pg 520)

+ Attitudes: Evaluative statements, either favorable or unfavorable, concerning objects, people,

or events (PM textbook, pg 521)

+ Perception: a process by which we give meaning to our environment by organizing and

interpreting sensory impressions (PM textbook, pg 537)
➢ Is the manager being deliberately confrontational or are they trying to help?

+ Informal Interactions: is organizational communication not defined by the organization’s

structural hierarchy (PM textbook, pg 497)

Consequences: High turnover rate and increase in job dissatisfaction of the employees.

Factors causing of the issue Impact on the company

Attitudes + Communication acts to control employee behavior in

several ways (PM textbook, pg 488)

+ Extreme emotions - hinder effective communication

(PM textbook, pg 493)

=> Lack of thorough listening and comprehension

+ Job dissatisfaction & counterproductive behaviors (PM

 textbook, pg 524)

Job dissatisfaction may result in difficult employees, who

engage in counterproductive activity

+ The behavioral component refers to an intention to

behave in a certain way toward someone or something
(LO 15.2)

Perception + Different employees may have different perspective on

the same subject (the feedback)

+ They behave according to their perceptions (LO 15.4)

=> Miscommunication => Resulting in Noise, which create

distortion at any point in the communication process (PM
textbook, pg 489)

Informal Interactions + Not defined by the organization’s structural hierarchy

(LO 14.3)

=> Gap between formal communication and informal

communication
=> The employees may view the honest feedback from the
managers as confrontational

Actions:
- Under the perspective of the managers
● The managers can start with compliments and then provide critical feedback to the employees
(without confrontational)
● Managers can use the filtering method - the deliberate manipulation of information to make it
appear more favorable to the receiver (ref pg 493) (without confrontational)
● Try polite confrontation (PM textbook, pg 657), in some situations, managers need to
provide honest feedback with confrontation. (with confrontational)
● Positive and negative reinforcement consideration in dealing with difficult employees (with
confrontational)
- Under the perspective of employees
● Employees need to reduce extreme emotions. (ref pg 493)
● Analyze problems together—managers and employees (Ex 14.5 - pg 507)

14-14. Do you think the Anytime Feedback Tool is a useful communication tool for
an organization? Why or why not?

LO 14.2: Describe methods and challenges of interpersonal communication.

LO 14.3: Explain how communication can flow most effectively in organizations.

As useful and convenient the Anytime Feedback Tool, there remain several setbacks
 Benefits Drawbacks

+ Upward communication (PM + Managers deliver feedback to

textbook pg 498): employees on performance that they did
not observe first-hand ( => Lack of
It keeps managers aware of how employees feel
observation and honest evaluation =>
about their job, their coworkers
Communication barrier (LO 14.2)
=> Evaluation among the employees
Noise can create distortion at any point in the
Employees know each other and they are aware communication process PM textbook (pg 489)
of how well the others work + Trust and respect issue (intentional
sabotage)
+ Helps the employees thrive in the
feedback-rich environment + Senders of the feedback are unknown
=> the victim wouldn’t be able to
=> Getting the employees accustomed to the defend themselves
culture of Amazon

+ Pushes them past their limits

Conditions Assessment

Organizational culture + Amazon culture: competitive, feed-back rich

+ The CEO of the company believed that ‘Harmony is overvalued and it

might stifle the honest feedback’

=> Strong-minded

● We need to examine whether the other organizations have same

(or at least the closest) vision, mindset like Amazon

Moreover, examination on how they’re going to catch up with Amazon, how

they are going to deal with problems equivalent to the internal sabotage that
Amazon has

Time of application + Amazon apply this tool for a long time

=> Their employees have enough skills as well as training to use this tool

=> Remove partly the weakness of this tool causing to make sure that
employees use it effectively

● Organizations and companies might need to have trial period to apply

this tool

=> To see if this tool is suitable for the company’s current situation or not

Suggestions
 + Get employees input (ref LO 14.5), allowing employees to speak up about what’s bothering
them (ref Nokia case, pg 506)
+ Come up with authenticity checking system for every feedback received from employees
+ Managers need to engage actively in assessing the performance of the employees (Listen
actively, pg 494)
+ Implement other performance gauging methods such as:

● 360 degree-appraisal
● Self-evaluation
● Management by objectives
(PM textbook, chapter 13, pg 463)

14-15. How could Amazon eliminate concerns with employees using the tool to sabotage other
employees?

LO 14.5: Summarize communication issues in today’s organizations

Issue: Sabotage other employees in the company.

Cause of the issue (according to case application in textbook ref pg 513)

➢ Amazon’s workplace culture emphasizes harshness and competition => focus on productivity
➢ Using Anytime Feedback Tool - the anonymous feedback, the ease of use => employees can
send false or misleading feedback to other employees.
➢ Managers often receive reviews of their employees’ performance that they did not observe
first-hand

Conditions - how to eliminate:

➢ Encourage ethical communication
➢ Enable two-way communication
➢ Get input from their employees
➢ Create a healthy work environment

Factors causing of the Impact on the company Actions to avoid sabotage

issue other employees

Amazon’s workplace Negative - employees feel pressured Developing the culture of

culture: competition cooperation and competition -
create healthy working
environment

One-way feature of The lack of authenticity of employee Enable two-way

"Anytime Feedback Tool" performance feedback communication - interact with
- traditional feedback anonymous responses

Managers did not observe The lack of interaction - manager & Get input from their employees
first-hand employees’ employee - see Ex 14.5
performance The lack of authenticity of employee Direct view of employee
 performance feedback performance - provide
evidence, point out detail of
problem

14-16. Would you like to work in a competitive organization like Amazon? Why or
why not?
LO 14.2: Describe methods and challenges of interpersonal communication.
LO 14.5: Summarize communication issues in today’s organizations

The willingness to work at Amazon depends greatly on the personality, qualifications and the ability
to adapt to the performance-oriented working environment at Amazon

Working at Amazon

Pros Cons

+ Competitive and feedback-rich + The environment can be harsh

working environment
=> Stressful working environment
=> Boost the performance of the employees
=> High turnover rate
+ Stimulate the creativity and innovation
(Kindle or drone delivery, ref pg 513) + Unconventional mindset of Amazon
(Harmony is overvalued)
+ Amazon’s culture is reinforced by 14
principles that guide employee behavior + Confrontational and blunt feedback
(pg 513)
+ Dishonest evaluation (sabotage)
=> Clear behavioral guidelines for the
employees to follow (ref LO 14.5, pg 510)

+ Performance gauging methods (Anytime

Feedback) (ref LO 14.2)

2. Tencent:
15-13. Do you think the work culture at Tencent is effective ? Would it work in other
organizations ? Why or why not ?
Outline:
- Work culture:
+ Presents a busy and challenging environment
+ Competitive culture from an early stage for employees
Determine the factors:
- Exhibit 15.1 => under the surface are other elements that managers need to understand - elements
that also influence how employees behave at work.
- LO 15.1: workplace culture links company culture with employee behavior such as engagement,
 productivity or retention rate, … => work culture in Tencent is effective because it motivates positive
behavior.
Answer:
- According to the Tencent webpage, Tencent not only creates an open and comfortable workplace for
their employees but also a competitive working environment in which there will be challenging work
tasks including a comprehensive training program and promotion system with flexible internal
transfer opportunities
=> This culture environment could help the employees see Tencent as a place where they can
energetically work with adequate supportive resources and people surrounding them and frequently
enjoy the rewards of their intense effort. This feeling could help the employees to be highly engaged
and be the top performers of the organization.
=> The high level of job involvement could lower absenteeism, resignation rates, and also higher
employee engagement with their work => employees could have more perceived organizational
support to complete their organizational commitment which results in increasing job satisfaction and
lowering turnover.

- Would it work in other organizations ?

Large and high-tech company (Apple, Google) Start-up company

Tencent - “Tencent's culture is like a shark womb” (Andy - The processes followed by Tencent may not be an appropriate
work Mok) match.
culture’s - Google: As Google HR boss Laszlo Bock, the key - Reasons:
to Google's success as a workplace is constantly + Many startups fail only because the managers do not
innovating, experimenting, and keeping things fun know how to manage individual behaviors
=> Tencent and Google are related to the same + the importance of understanding employee behavior can
industry - high-tech companies => Tencent’s work not only help magners connect work culture with
culture is suitable for Google. employee behavior but also motivate positive behavior
- According to PayScale, 86% of Google employees among employees
say they are either extremely satisfied or fairly => It doesn’t work in start-up company
satisfied with their job. => The management must know what incentives to use and how

15-14. How would an understanding of organizational behavior help Ma Huateng ? What do

you think will be Tencent’s biggest challenge in the future ?

Understanding the relationship between an Motivating employees

organisation and its employees
The importance - The study of organisational behaviour - Studying OB => better understand their employees
of understanding => better understanding of the relationship between and motivate them by applying different
organizational an organisation and its employees because it is motivational tools => resulting in the better
behavior. helping in the development of better Human performance of the organisation as a whole =>
Resource strategies in developing a work-related leading to job satisfaction. For example, Tencent has
environment within an organization. For example, distributed its employee shares during this meeting to
Tencent offers an equal, transparent and non- demonstrate that each person is a part of the firm,
discriminatory working environment. highlighting the connection and reliance.
=> Organizational behavior also assists in functional => Tencent can stimulate their staff to highly
behavior within an organization such as increasing involve themselves in their tasks at work. As the
the effectiveness, productivity, efficiency and textbook has defined, job involvement is the degree to
reducing dysfunctional behavior in a workplace such which an employee identifies with his or her job,
as dissatisfaction of employees, employee actively participates in it, and considers his or her job
absenteeism and tardiness. performance to be important to his or her self-worth.

- Biggest challenge: Ma Huateng recognized that staffing is critical in the Internet business, and he
invested heavily in the interests and satisfaction of his employees, which helped the business function
more effectively, making them a "leading internet service portal" and the world's tenth most valuable
public company, which attracted even more talented candidates. Therefore, with the understanding
OB can help Ma Huateng identify how to increase employee performance via pay and internal rivalry
created by a parallel management structure => he solved the external situation. Because according to
the Tencent case, staff is the key that leads Tencent to succeed => As a result, to maintain the success
for the company, the prior condition is that he needs to solve an external situation.

15-15: Using what you’ve learned from the various behavior theories, what does Tencent’s
situation tell you about employee behavior ?
Outline:
- According to the Tencent case:
+ Internal situation: To continue increasing the Internet company’s business,
+ External situation: Staffing is the key and that the employees must have a vested interest in its
success.
- Determine the factor:
+ LO 15.1 => explain Tencent situation affect employee behavior (productivity and turnover)
=> the goals of OB are to explain, predict, and influence behavior
+ LO 15.5 => social learning theory, operant conditioning, motivational theory are three
theories that come from organizational behaviour => impact of these theories on employee
behavior.
+ Exhibit 15.1 => under the surface are other elements that managers need to understand -
elements that also influence how employees behave at work.
Answer:
- Organizational behavior is the behavior of individuals and groups within organizations (Coffey,
Cole, and Hunsaker, 2010). According to exhibit 15.1, under the surface are other elements that
managers need to understand - elements that also influence how employees behave at work. Along
with the Tencent situation, it can be seen that employee behavior is a vital factor affecting
organization in general. That’s why Tencent has provided their employees with numerous benefits to
enhance job satisfaction as it refers to a person’s general attitude toward his or her job.
Outcome Social learning Operant conditioning Motivational theory

Productivity - Tencent situation: All-hands - Tencent situation: As the case has - Using reinforcement theory,
meetings are to share with mentioned, Tencent gives cash managers can influence
employees the company's strategy, rewards to employees with valuable employees’ behavior by using
upcoming roadmap, management results such as redesigning an positive reinforcers for actions that
updates, and so on. This meeting of interface to new and significant help the organization achieve its
Tencent has given their employee innovations. goals
shares to show that each employee - Tencent situation: Tencent not
is a part of the company, => Cash rewards have become only creates an open and
emphasizing the connection and part of the ingrained Tencent culture comfortable workplace for their
reliance (Tencent webpage) => This method not only appraises employees but also a competitive
the employees with valuable prizes working environment in which
=> More employees engaged in the for their performance but also there will be challenging work
company, higher performance, and admits them as a significant part of tasks including a comprehensive
lower cost would be. the organization which makes the training program and promotion
=> That improves employee employees be more productive and system with flexible internal
engagement: managers want their improve themselves in a high- transfer opportunities (Tencent
employees to be connected to, performance future high- webpage).
satisfied with, and enthusiastic performance career. + For example, HK Disneyland -
about their jobs. fostering an open communication
environment.
=> That improves employee
engagement: managers want their
employees to be connected to,
satisfied with, and enthusiastic
about their jobs.
Turnover - Tencent situation: Tencent - Tencent situation: Employee - Using Maslow’s Hierarchy of
operates the Tencent Houshui dedication is critical for Tencent's Needs Theory => psychological
program to provide the employees business model. => Establishing needs
with the chance to try out all the fair wage rules, bonuses, and - Tencent situation: they provide
positions within Tencent for their incentives that allow employees to employees with allowances for
career development. This program purchase stock in the firm is communication, living expenses,
helps about 1000 employees to find fantastic financial leverage to assist travel, and celebrate all of life’s
new and exciting working the company in progress ever more. milestones such as your birthday.
opportunities at Tencent (Tencent - According to the article “Analysis Tencent also creates an active and
webpage). on How to Improve the Equity convenient working environment
Incentive System of High-tech with self-service snacks and tea,
=> The lower level of absenteeism, Industry in China: Taking Tencent office fitness equipment, mobile
resignation rates, and also higher as an Example”, since 2007, there office needs, etc, everything the
employee engagement with their has been a long-term and consistent employees need to work
work. Because through the training Equity incentive plan: Provide efficiently, all in one place.
program, they can learn more business stock options to important (Tencent webpage).
professional skills from each other long-term workers who have
at Tencent Academy. From these consistently great performance,=> These activities could help the
activities, employees could have so that employees may enjoy theemployees see Tencent as a place
more perceived organizational firm's performance development.where they can energetically work
support to complete their with adequate supportive resources
organizational commitment which => Long-term employees may and people surrounding them and
results in increasing job satisfaction enjoy the benefits of being frequently enjoy the rewards of
and lowering turnover. rewarded with business stocks. their intense effort. This feeling
=> Increase retention could help the employees to be
highly engaged and be the top
performers of the organization.

15-16. Looking at the incentives system offered by Tencent, what does that tell you about the
importance of understanding individual behavior ?

Outline:
- Incentive system: Tencent provides employees with highly competitive remuneration packages
through financial and intangible incentive mechanism and salary adjustment mechanism
+ In celebration of Tencent’s 18th anniversary, Ma Huateng announced that 300 shares of
Tencent stock would be awarded to employees as a special commemoration.
+ Intangible incentives such as a sense of accomplishment, better job design, promotion and
professional development opportunities are important tools to upkeep employee satisfaction.

Determine the factors: by LO 15.2 => incentive systems include cash and intangible incentives are
important tools to upkeep employee job satisfaction.

Answer:
 - The key to expectancy theory is understanding an individual’s goal and the link- age between effort
and performance, between performance and rewards, and finally, between rewards and individual goal
satisfaction. Theory predicts that an employee will exert a high level of effort if he or she perceives a
strong relationship between effort and performance, performance and rewards, and rewards and
satisfaction of personal goals.
Financial incentive Intangible incentive

Expectancy - While moral satisfaction is important, to boost - Financial incentives alone are not sufficient to inspire
theory (pg employee enthusiasm Tencent won’t underestimate workplace spirituality
603) the importance of linking remuneration to - Intangible incentives such as a sense of accomplishment,
performance (pg 546) better job design, bigger job responsibility, promotion and
=> Decent pay, monetary rewards and bonuses, and professional development opportunities are important tools
comfortable working conditions are necessary to to upkeep staff satisfaction.
prevent job dissatisfaction => Employees could have more perceived organizational
=> Expectancy theory emphasizes payoffs, or support to complete their organizational commitment which
rewards and expected behaviors. Therefore, Tencent results in increasing job satisfaction and lowering turnover.
believe that the rewards an organization is offering
align with what the individual wants-managers
understand why employees view certain outcomes
as attractive or unattractive- reward individuals with
those things they value positively—will determine
his or her motivation
=> Expectancy theory predicts that an employee
will exert a high level of effort if he or she perceives
a strong relationship between effort and
performance, performance and rewards, and rewards
and satisfaction of personal goals
If rewards are allocated only on nonperformance
factors-such as seniority, job title, or across-the-
board pay raises—then employees are likely to
reduce their efforts Integrating Contemporary
Theories of Motivation (pg 603)

=> Motivation would be high to the degree that the rewards an individual received for his or her
high performance satisfied the dominant needs consistent with his or her individual goals (pg)

From a motivation perspective, making some or all of an employee’s pay conditional on some
performance measure focuses his or her attention and effort toward that measure, then reinforces the
continuation of the effort with a reward. If the employee’s team’s or organization’s performance
declines, so does the reward. Thus, there’s an incentive to keep efforts and motivation strong. Each of
these relationships is in turn influenced by certain factors. The traditional need theories come into
play at this point. Motivation would be high to the degree that the rewards an individual received for
his or her high performance satisfied the dominant needs consistent with his or her individual
goals.Integrating Contemporary Theories of Motivation (pg 603)

3. Employee engagement: ✔
1• What role do you think external factors such as the global economic downturn or a country’s
culture play in levels of employee engagement? Discuss.
2• What role does an organization’s motivational programs play in whether an employee is engaged or
not? Discuss.
3• How might a manager’s leadership style affect an employee’s level of engagement? Discuss.
4• Look at what we discussed about managerial communication in this part. What could a manager do
in the way he or she communicates to affect an employee’s level of engagement?
5• You’re a manager of a workplace that has different “generations.” How will you approach engaging
your employees? Do you think Gen Y employees are going to find it more difficult to “engage”?
Discuss.

Discuss the questions in the last bullet point: You’re a manager of a workplace that has different
“generations”. How will you approach engaging your employees? Do you think Gen Y
employees are going to find it more difficult to “engage”? Discuss

Case employee engagement:

Issue: low employee engagement in my country

Possible cause of the issue:

LO15.2 for Ch 15 - organizational behavior principles explain employee engagement characteristics.

LO15.3 & 15.4 for the perception factors.

Factors affecting employee engagement (according to the discussion questions in the textbook case):

➢ Motivation
➢ Leadership style
➢ Communication
➢ Generational diversity (possible - linked to perception, stereotyping)

LO 15.2 (pg 524-525) - factors contributing employee engagement:

Respect - communicating
Type of work
Work-life balance
Providing good services to customers
Base pay - job satisfaction (Herzberg’s motivation theory)
People you work with - organizing, communicating
Benefits - job satisfaction (Herzberg)
Long-term career potential
Learning & development opportunities
Flexible work - job satisfaction (Herzberg)
Promotion opportunities
Variable pay/ bonuses

What actions to improve employee engagement

➢ Motivation - apply motivation principles Herzberg, job design, ownership

➢ Leadership style - transformative, develop trust (ref text principles pg 571, ref Indra Nooyi
PepsiCo case), empowering employees (ref text principles pg 572)
➢ Communication - Efficient, help employees and customers stay connected (ref Nestle pg 504,
ref Volkswagen pg 497)
 ➢ Generational diversity (possible - linked to perception, stereotyping, ref text principles pg
607)

Factors affecting Impacts on the company Actions to take to improve

employee engagement
engagement

Respect More respect for employees gives them a Empowering employees:

sense that they are being valued for their - people-oriented
contributions (ref pg 572). Leads to trust- culture at WL Gore
building and employee empowerment - (see photo caption
Impact on decision-making - quicker pg 572)
decisions made by employees closer to Self-managed team:
customers/operations - more - see WL Gore case -
knowledgeable. self-managed team

Type of work Operational - quick decisions can be made Job design

Front-line (customer-facing) - more - see Job
effective customer engagement, satisfaction characteristic
Back-room - more efficient work, model (Exhibit 17-
minimizing errors, reducing costs 6, pg 598)

Base pay, benefits, More job satisfaction Create more motivators

Work-life balance, - Herzberg’s Two-Factor Theory, + Achievement
flexible work, etc ref pg 592 + Recognition
+ Work Itself
+ Responsibility
+ Advancement
+ Growth
- Ex 17.2

Global Economic Unemployment happens more often: Managers need to motivate

Downturn (1) - Demotivate employee and boost employee’s
Opportunity to prove truly engaged morale
employees Organizations must adapt,
Engaged employees will work harder to exploit, and fit with forces in
make up losses their external environment to
survive and thrive

Country’s Culture (1) Different Requirements are set for the Managers need to have
engagement of each individual knowledge about the
Culture-affected employees are engaged cultures of the country,
Unaffected are normal respect it to keep local
employees engaged
Managers are advised not to
perform activities that are
not in favor of the country’s
culture
(Ref Daihatsu Motor Plant
pg 605)
Different 4 main generations: Baby Boomers (1946 - Many people prefer
Generations, 1964), Gen X (1965 - 1980), Gen Y (1981 - Stereotyping, but it is really
Stereotyping 2000), Gen Z (2001 - 2020). biased and untrue in most
cases - just because this
Differences in perception - challenging in a person is born at that age
multigenerational workforce doesn’t mean they should
act like it
=> Individual differences are
much more important
1. Organization as Iceberg
(Exhibit 15-1, pg 520)
identify hidden aspects of
the organization to design
appropriate rewards that fit
individual goals
2. Job characteristic model
(Exhibit 17-6, pg 598)
design jobs that ensure
employees feel valued at
work. With appropriate job
design, it is possible for
organizations to achieve
higher internal work
motivations among
employees.
3. Expectancy Theory
(Exhibit 17-8, pg 602)
design a reward system that
is not only attractive to
employee’s interests but also
equitable to the hard work of
an employee
4. adjust the current federal
organization paradigm to
create an environment where
leaders are able to connect
relationally, speaking the
preferred language of each
generation, be consistent yet
diverse enough where its
communication style is
attractive to all generations.
Most important, shifting
authoritative leadership to
leaders who inspire and
engage.
If managers know what Gen
 Y members want from their
job, it would be easier to
assign appropriate rewards
to them, which also helps
them stay engaged

PART 5: Controlling

1. Chipotle: ✔

18-13. Why is it important for Chipotle to revise the company’s food-handling standards?
Outline:
- Issue (cause - effect): Chipotle’s promise of “food with integrity” includes fresh, locally sourced
ingredients and naturally raised meats. They effectively met this promise for many years, but during
the outbreak (E. coli, norovirus), they met a lot of food safety problems which caused health problems
for their customers.
- Determine the factors: LO 18.2 and exhibit 18-6 => define that revising the standard is one of the
most important steps in controlling the process.
+ In the exhibit 18-6 about the Managerial decisions in the Control Process, the variance in the
Chipotle situation is out of the acceptable range of variation as the consumers have been
seriously contaminated by the food quality and the standard is not suitable and cannot be
afforded by the employees with the larger scale of the fast-food chain. Thus, the standard
needs to be revised.
- PM textbook: if performance consistently exceeds the goal, then a manager should look at whether
the goal is too easy and needs to be raised. On the other hand, managers must be cautious about
revising a standard downward.
- Base on following situations:
+ Food supply chain: the main problem of Chipotle is that the complexity of their food
sourcing, coupled with in-store food preparation, is most likely what caused the food
contamination problem. It means that the food chain needs to be simple.
=> They need to change the standard to maintain the quality - for maintaining quality company has to
revise their food handling standard
=> The more basic the food chain, the easier it is to control
+ Food suppliers: they also sourced ingredients locally wherever possible, creating
relationships with hundreds of vendors.
=> All the company stakeholders observe the safety measures to prevent health risks for the end-user.
Answer:
- According to the website, Chipotle takes the safety of their food throughout our supply chain and
restaurants. Adhering to food safety and quality standards to prevent health risks that can arise from
the handling, preparation, and storage of food is a priority we take very seriously in every aspect of
our business from our supply chain to our restaurants.
- According to LO 18.2, revising the standard is related to taking Chipotle needs to change its food
handling standards by centralizing all food activities like food preparation to a centralized kitchen and
start sourcing their food ingredients from some vendors. This is done so that Chipotle can make sure
that customers get natural and healthy food in its restaurants.
 Problems Standards

Food supply - The main problem of - Chipotle should revise the food handling standards to combat the food
chain Chipotle is that they prepare supply chain challenges that might threaten the company's goals (Aung
as many foods as possible at & Chang, 2014). The old food-handling standard of Chipotle must be
the local stores and the fresh, locally sourced ingredients and naturally raised meats. However,
complexity of their food as their fast-food chain grew up, this unique standard can not be met as
sourcing, coupled with in- the safety standards have to be ensured at the same time and create a
store food preparation, is complex and risky supply chain challenge for the company. Therefore,
most likely what caused the the food handling standards of a company need to be updated crucially
food contamination problem. because food handling and procurement are directly related to the
company's handling standards.
=> They need to change the standard to maintain the quality
=> The more basic the food chain, the easier it is to control. The
managers need to ensure that they use just the basic food chain instead of
complex ones to ensure that quality is maintained at all stages.

Food suppliers - They also sourced - The standards will ensure that all the company stakeholders observe the
ingredients locally wherever safety measures to prevent health risks for the end-user.
possible, creating - According to Chipotle website, there are three standards that they
relationships with hundreds require from food suppliers:
of vendors. + Implement a series of preventive food safety systems, including
HACCP plans to further control food safety risks.
+ Document the effectiveness of the food safety process
interventions which are used within harvesting and processing
operations.
+ Routinely verify the effectiveness of their food safety
interventions by using microbiological testing methods
recognized by the FDA and USDA

18-14. Which controls would be more important to Chipotle: feedforward, concurrent, or feedback?
Explain. (Hien)

Outline:

- Chipotle issues: Chipotle’s promise of “food with integrity” includes fresh, locally sourced
ingredients and naturally raised meats. They effectively met this promise for many years, but during
the outbreak (E. coli, norovirus), they met a lot of food safety problems which caused health problems
for their customers.

- Definition of 3 types of controls: (PM, Ch 18, pg 642)

+ Feedforward: Control that takes place before a work activity is done

+ Concurrent: Control that takes place while a work activity is in progress
+ Feedback: Control that takes place after a work activity is done
 - Based on two factors:

+ Quality of food and ingredients: explain how feedforward, concurrent, feedback affect the
quality of food and ingredients and customer safety => Why is it important ? => compare =>
feedforward is the most important
+ LO 18.3 => Employee performance is controlled through effective performance feedback and
through disciplinary actions. => Applied both concurrent and feedback control.

Answer:

Factor/Criteria Feedforward Concurrent Feedback Evaluation

The quality of - Pros: Chipotle can - Pros: Managers can use this - Pros: This control can be (Feedback): Managers
food and anticipate the ways to control to immediately used to give feedback to the wait for feedback, the
ingredients preserve the food and explore the current problems performances of employees customers can die
(safety and the ingredients and with the food or ingredients and state out the potential because safety is the
hygiene) the problems that in terms of sourcing and issues that happen to the most important that only
occur if the food- preserving. food preserving handling feedforward can be
handling standard => The basic theme of process for the employees. ensured. Although Steve
and safety standard concurrent control is that it Ell - the old founder
cannot be met => It keeps on monitoring the - Cons: As we take control apologized to everyone
could help Chipotle process and activity (ch18, after a food contamination who had fallen ill, it
to minimize the pg 463) => use walking scandal has happened, the won’t help Chipotle
errors in examining around to interact directly damage can be regain customer’s trust
food contamination with the employees to unexpectedly harmful in because the fundamental
and be more quickly know the situations terms of the image of the problem comes from the
proactive with of the restaurant and ask for brand and the health safety input resources.
changes in the supply recommendations as the of the customers. (Concurrent): because
chain. employees are the first “food fraud damage can concurrent control
(example:PM, pg 642 problem approachers. range from brand reputation requires managers have
McDonald's have to revenue to the health corrective action
used this type of - Cons: In some sudden complications for immediately, but it limit
control to manage cases, the managers cannot consumers due to its impact the time for managers to
their food chain find out the sources of on food safety” analyze the issues =>
globally). problems and take wrong (Jack Lyons, 2018) High risks to making
immediate corrective actions wrong immediate
- Cons: time- which can damage the corrective actions
consuming and high working process of the
cost of operation restaurant. => (Feedforward):The
(ch18,pg 642) problem is considered
completely solved after 4
years under the
leadership of Mr
the new CEO. One
method he used to tackle
this challenge was
feedforward control. All
of his solutions such as
sourcing ingredients from
fewer vendors, changing
some food-handling and
preparation procedures
are related to solving
 input resources which
feedforward control
participates in.
=> The lack of
feedforward control is
mainly led to the
problems of food
contamination

The employee - Pros: Chipotle - Pros: - Pros: - In this situation,

performance provided training + This control can be used to + This control can help the managers can use both
courses for analyze the problems within employees do their job concurrent control and
(Chipotle should employees => help the employees at the better (Ch17, pg 595) as feedback to maintain the
control the them know what they workplace whether they have feedback can let the organizational goal of
employee should do and avoid any conflicts or problems employees know how well Chipotle.
performance for some unpredictable with the jobs or with the co- they are progressing + In concurrent control,
making sure issues. workers that can affect their towards their company’s the best-known form is
employees' work working quality. goal or standard. direct supervision and
efforts are of the - Cons: This control + Managers can use the + (Ch 17, pg 597 exhibit walking around =>
quantity and can make the MBWA to approach the 17-6), feedback is one of managers can cover
quality needed employees confused employees to monitor and the five characteristics in mistakes in the food-
to accomplish when the situation is discover the mistakes in the the job characteristics handling process if
organizational just anticipated and food-handling process and model. The employees can employees do wrong.
goals) hard for the immediately instruct them to have the knowledge of the Depend on the
employees to follow let them understand more actual results of the work seriousness of issues =>
(PM,Ch18,pg with the goal or the about the standards. activities, which lower the effective employee
639) actual standard they absenteeism and turnover feedback or disciplinary
need to achieve in the rate of employees. actions.
job. => From the feedback => Concurrent control is
- The goal-setting control the employees could the premise for feedback
theory in Ch17 says know their gaps in control.
that the specificity of acquiring the procedures of + In feedback control:
the goal itself acts as the restaurant and try harder managers can use
an internal stimulus to minimize the potential meaningful feedback to
in engaging mistakes in the food- recognize employee’s
employees with the handling process. effort => enhance
work. Employees motivation => easily
have to clearly complete organizational
understand before goal
truly accepting it. - Feedforward is not
suitable for this situation
as the employee
performance cannot be
accurately predicted in all
cases.
→ The specificity of the
standard is not adequate
→ The employee
performance cannot
have a clear working
orientation.
18-15. How can Chipotle make sure that employees are following the new food-handling standards ?

Outline:
- PM textbook: The best-known form of concurrent control is direct supervision. Another term
for it is management by walking around => way to monitor employees
- LO 18.2 & 18.3: (18.2- correct actual performance, 18.3- controlling employee performance)
+ Chipotle can take corrective action on actual performance of employees to help the
employees understand the job more.
+ Chipotle can take disciplinary action to regulate the employees’ disciplinary problems

Answer:
- Chipotle can follow the concurrent control to figure out if there are any variations in the
working process and then use corrective or disciplinary actions to oversee or regulate the
performance of the employees. According to the PM textbook, a manager could take different
corrective actions such as training programs, disciplinary action, changes in compensation
practices, and so forth.
- The manager can operate the corrective actions to correct the actual performance of
employees. If there are employees who cannot understand the new standards of food-
handling, they can provide a training program for the employees to get accustomed to the new
standards. For instance, Enhanced Internal Training of Chipotle ensures that the employees
have a thorough understanding of food safety and standards. However, the managers need to
know the characteristics of the employee's problem to use immediate or basic corrective
actions in order to get the employees back on the right track or prevent them from making
mistakes before it happens.
- Moreover, the managers can take disciplinary actions to regulate the disciplinary problems
of the employees ( Ch18, pg 639). Particularly, the managers need to enforce the
organization’s work standards and regulations. The reason is that employees can have some
disciplinary problems in working (there are 4 types in exhibit 18-8). For instance, they can
steal some ingredients or food in the restaurants without permission which is the dishonesty
problem or they do not strictly comply with the requirements of food-handling which is the
on-the-job behavior problem. In such cases, the managers can use the disciplinary actions to
warn the employees of their bad performance. More strictly, the manager can use the
progressive disciplinary actions to give out the minimum penalty to the offense imposed. It
can range from a verbal warning to a written warning and seriously the dismissal. The
disciplinary action can both control and correct the employees.

(Kẻ bảng các cách để monitoring employees’ performance và tác d ụng c ủa nó)
Ways to monitor employees performance Its effect on Chipotle

Corrective actions - Provide a training program for the employees to

get accustomed to the new standards. For instance,
Enhanced Internal Training of Chipotle ensures
that the employees have a thorough understanding
of food safety and standards

Disciplinary actions - The reason is that employees can have some

disciplinary problems in working (there are 4
 types in exhibit 18-8).

18-16. What are some measures of organizational performance that Chipotle management should
use ?

Outline:
- Determine the factors: LO 18.4 and exhibit 18-10 => three ways that managers can use to measure
organizational performance:
- LO 18.4:
+ Balanced scorecards provide a way to evaluate an organization’s performance in four different
areas rather than just from the financial perspective.
+ Benchmarking: the search for the best practices among competitors or non-competitors that
lead to their superior performance.
- Exhibit 18-10: financial controls: every business wants to earn profits => they need a financial ratio
to ensure that sufficient cash is available to pay ongoing expenses or that assets are used productively.
Connect the impacts of each measure with the characteristics of Chipotle performance (organizational
performance).

Answer:
Chipotle can use financial control, balance scorecard and benchmarking to measure the performance
of Chipotle.
- For Balance Scorecard, leaders at Chipotle can use the Balanced Scorecard strategic tool to
build sustainable competitive advantage by better understanding the relationship among -
financial resources, internal processes, customer preferences, and operations management in
Chipotle Grill’s overall strategy. The biggest advantage of the Balanced Scorecard approach
for Chipotle is that it provides senior executives with a framework - non-financial metrics that
they can use to develop a holistic strategy rather than just optimizing just one part of the
business.
- For Financial control, Chipotle’s managers use this control to formulate a budgeting plan in
order to analyze which work activities are important and what and how much resources
should be allocated to those activities (Ch 18, pg 645). Moreover, they can use budgets to
measure and compare resource consumption (the managers know what deviations are
happening and decide whether to necessarily act on it).
- For Benchmarking measures, the managers can look up best practices among competitors
or non-competitors that lead to their superior performance. It means learning from others by
measuring and comparing our performance to others (Ch 18,pg 647). In Ch18, pg 647,
benchmarking is a tool for monitoring and measuring organizational performance. Therefore,
the Chipotle team (maybe the R&D team or department) can use this measure to identify the
specific performance gaps and potential areas of improvements according to the successful
operation of other brands.

(Kẻ bảng các loại measure dùng cho organizational performance và tác d ụng c ủa nó)
Measures of organizational performance for Chipotle It effects on Chipotle management

Ghi tên measure Bỏ highlight màu vàng vào (có thể thêm 1 vài
impact đằng sau mỗi highlight)
 2. BYOD: ✔
______________________________________________________________________

- Issue: BYOD trend

- Causes: Privacy and security challenges of BYOD
From a privacy perspective, some employees fear BYOD programs give the company too much
access to their own personal business. Management must be extra cautious to assure that the
technology is secure and does not make company secrets vulnerable.

- LO 18.5: DISCUSS contemporary issues in control.

Six management control issues are cross-cultural differences, workplace privacy, employee theft,
workplace violence, customer interactions, and corporate governance. For each of these issues,
managers need to have policies in place to control inappropriate actions and ensure that work is
getting done efficiently and effectively.

Employees who use the Internet and social media for personal use are not entitled to privacy.
Organizations need to establish clear policies that outline the differences between proper and
improper use and the consequences for using technology inappropriately.

Employee theft is costly to organizations. Procedures for monitoring theft and the consequences for
committing a theft should be clearly explained to employees.

- LO 18.4: DESCRIBE tools used to measure organizational performance.

Feedforward controls take place before a work activity is done.

- LO 18.3: EXPLAIN how organizational and employee performance are measured.

Organizational performance is the accumulated results of all the organization’s work activities. Three
frequently used organizational performance measures include productivity. Employee performance is
controlled through effective performance feedback and through disciplinary actions, when needed.

Conditions :

Pros Cons

Data theft - leakage: If a device gets lost or is stolen, the

Cost Reduction: Companies can spend a lot of money on thief of the device may be able to access valuable personal
providing technology to employees. If laptop computers and information and even company secrets.
phones are needed for employees to do their jobs, allowing
employees to use their own devices can represent a huge cost
savings.

Malware infiltration: Business computers and machines

Improved productivity: are well shielded from Malware risks but employees private
devices don’t have such strong protection. Malware refers
Increased employee satisfaction - employees can choose to malicious applications that when a device is
the device that best fits their personalities and preferences for compromised by malware, corporate confidential data can
 be lost and corporate identities can be impersonated by the
maximum engagement or keep track of every important attacker.
detail in their lives from a single device to more easily get
tasks done

Privacy issue: BYOD policies often require the IT

Improved productivity: department to employ certain monitoring tools, in order to
manage the device when necessary => cause conflict with
Increased flexibility- They’re able to have more control privacy laws as usage is considered strictly personal as well
over the devices they have to use and can make choices that
benefit them the most. This can contribute to an improved
work-life balance that in turn results in higher levels of
productivity

Productivity matters: Personal devices can hamper the

Improved productivity: productivity of employees drastically and might also result
in losing interest in work and procrastination of the tasks
Increased familiarity- The familiarity that employees have that affect organizational productivity.
with their own devices allows them to collect data and tackle
work-related tasks with increased ease and efficiency and in
a more timely manner. In addition, they may be able to
quickly perform highly specialized functions that may have
taken hours to master on another device

18-17. Would you want to use your personal device for work purposes?
Consider pros and cons above:
- Employees have more choices personally- flexibility- familiarity that can increase productivity,
comfortability and satisfaction (pros)
-However, regardless of devices as a distraction since employees’ purpose is working, there are still
many limitations for employees which relate to ethical issues(cons)
● Cost issue: Employees will most likely default to their own devices. This largely shifts the
responsibility for hardware from the employer to the employee. An added benefit of this is
that employees are more likely to take better care of the devices, pay more on update and
repair since they own them.
● Privacy concerns: including health concerns, financial difficulties, personal relationships, and
so on, employees who use the Internet and social media for personal use are not entitled to
privacy (LO 18.5). Some employees fear BYOD programs give the company too much access
to their own personal business. Employers should want to access any device that contains
work-related information and data (pg 660)- an employer potentially being able to access
personal emails or texts that could then be held against the employee
● Personal data loss: BYOD case example - Saman Rajaee lost his personal information then
he sued the company

The Big Brother situation can arise–While not intentionally doing so a company’s IT department
will most certainly be able to track an employee’s physical location at all times and be aware of their
online activity.

18-18. Can you think of any other privacy or security concerns for companies that have a
BYOD program?

- Privacy: This could compromise privacy in numerous areas including health concerns,
financial difficulties, personal relationships, and so on.
- Litigation
- Security:
- Personal Data loss
- Public exposure
- Cross contamination
- Insecure usage
- Malware infiltration
- Local exposure

18-19. Given the privacy and security concerns, are BYOD programs really a good
idea for companies?
Consider pros and cons table:

Cons:

● Data theft - leakage: That brings more risk to employers than employees because in some
contexts, it comes from employees for personal benefit.
● Malware infiltration: That brings more risk to both employers and employees
● Privacy: That brings more risk to employees than employers

Pros:

Cost Reduction: That brings more benefits to employers than employees

Improved productivity: There are 3 reasons:

● Increased employee satisfaction

● Increased flexibility
● Increased familiarity

Those factors brings benefits to employers equal than employees

By the feedforward control tool in LO 18.4, although there are privacy and security concerns, many
workers still gladly accept, if clear guidelines have been established that aim to minimize discontent
and if employers take necessary technical, organizational and also legal measures for security and
privacy, such as passwords or ID. Adopting internal policies or implementing risk management
processes and clearly communicating policies in place outlining the expectations for personal devices
at work to employees to avoid these types of conflicts. Based on the case, it is good for companies to
take more of a “surgical” approach and remove only work-related information from an employee’s
phone. A more cautious approach can help keep company information secure, while reducing the risk
of employees losing their personal information such as their contact information and photos. Many
companies have established BYOD policies or require employees to sign agreements that clarify
security concerns and provide the company with access to equipment. Policies or agreements also
help establish privacy expectations. So in general, since there is much more benefits than risk that
BYOD programs really is a good idea for companies

18-20. Are there any productivity concerns with allowing employees to use their
personal devices at work?

LO 18.3: EXPLAIN how organizational and employee performance are measured. Three
frequently used organizational performance measures include productivity. Employee performance is
controlled through disciplinary actions, when needed.

Drawbacks related to productivity

- Data theft - leakage: That results in delaying while working due to data loss and cyber attack and
affects the more negative input of employees and more negative output of the employers.

- Malware infiltration: That brings more negative output for both employers and employees

● Privacy: That brings more harm to the input and output of employees.
● A device as a distraction: That results in delaying while working and affects the more
negative output of employees and more negative input of the employers

=> There could be other costs in security infrastructure and IT, software difficulties so The outcomes
of this can be severely hurting employee and company productivity

Benefits related to productivity

- Improved productivity: There are 3 reasons for this:

● Increased employee satisfaction

● Increased flexibility
● Increased familiarity

3 reasons result in more positive output and input of employees as well as the positive input
of employers. The increase in productivity of employees would result in the rise of
organizational productivity and performance that is the output of the company. Although that
programs have many pros, possible drawbacks leading to lower productivity remain for
companies should come up with appropriate solutions to deal with those problems

3. Lululemon: ✔

Pretend you’re part of the management team. Using what you’ve learned in this Part on
monitoring and controlling, what five things would you suggest the team focus on? Think
carefully about your suggestions to the team.

Above the line:

Issues identifying (cause-effect analysis): stretchy pants—one of the company’s core products – is
too sheer and revealing (product quality problems).

→ Recalling the batch of the product (which is embarrassing and expensive), damaged the
premium brand image of the company.

Determining factors: (exhibit 18-9 and exhibit MO-1 pg → define the factors causing problems
in determining product quality during and before the manufacturing process).

Based on the following factors

- If the problem is caused by technology, equipment, materials, people, etc. before the
activity begins (số 1 2 3) → Lululemon should highly focus on this type of control to
 improve product performance. (MO-1)

→ use feedforward control: requiring strict raw material specifications on the quality from
suppliers, tracking the progress of screening job applicants’ resumes, well-trained programs,
rewards to empower workers, investment in technology and equipment maintenance and
renovation from time to time.

→ use disciplinary actions: to prevent similar quality problems, Lululemon should use these
types of action for employees who are underperforming. For example, off-boarding.

- To correct problems of product quality as they happened (s ố 4):

→ Based on exhibit 18-6 → it is crucial to compare the actual performance against the
standard.

- To prevent problems occurring in the future: (số 5)

According to a plant manager of Northrop Grumman Corporation plant in Rolling Meadow,

said: It is important to find out what customers want and try to do then develop solutions
(pg 694)

→ Feedback control should be more focused by collecting and recording customer’s negative
feedback on product quality so that the managerial teams can use that information to
formulate corrective actions. (There were some comparisons between the prior cotton fabric
pants and nylon ones recently.)

→ innovate and improve product criteria to meet customer’s needs or expectations.

Below the line:

Managers can implement controls before an activity begins, during the time it is going on, and
after the activity has been completed in the operating system.

Factors Actions (best solutions)

1. Materials - Requiring strict raw material specifications

on the quality from suppliers
Ex: composition parameters to make up the
fabric material from a textile factory.
→ Double-check through the provided
parameter to recognize any component
changes.

2. Technologies and Equipments - Considerable investment on technology

and equipment maintenance and renovation
from time to time during the manufacturing,
dyeing, and sewing fabric processes.
→ Anticipate before a problem occurs in
the transformation process.

3. People - Track the process of screening job

applicant’s resumes for selecting the most
skilled people (in textile factories).
- Offering well-trained programs, rewards.
- Use disciplinary actions for employees
whose performance falls short of standards.
→ Effectively organize, lead and empower
workers in improving their performance.

4. Lack of standard measurement - Compare the variance among standard

(Based on exhibit 18-6 to define solutions) products and newly manufactured products.
Ex: require testing with live model
→ Determining the variance is acceptable
or not, further identify the cause of it and
make timely corrective action.
→ Prevent lost revenue, customers,
poor-quality products, and problems
occur repeatedly.

5. Customer’s dissatisfaction towards the - Find out what customers want and try to do
change in current fabric material (nylon). then develop solutions.
Ex: capture customer’s shopping
perceptions and trends as they tend to want
the fashion industry to follow more
sustainable practices. This implies
continuous work to improve all stages of the
product’s life cycle, from design, raw
material production, manufacture used in the
most sustainable and environmental manner
possible.
- Innovate and improve product criteria to
 meet customer’s needs or expectations.
Ex: change to the prior cotton fabric rather
than nylon.
→ Enhance customer satisfaction and
solve the current complaints.

Phần giải thích (có thể lấy ý không cần ghi lại)

1. At this stage, before the work activity is done, we use Feedforward control, to anticipate
before a problem occurs in the transformation process. For example, by requiring strict
raw material specifications on the quality from suppliers, such: composition parameters to
make up the fabric material from a textile factory. By that way, whenever the manufacturing
process finished, if there were any quality issues occurring, we could double-check through
the provided parameters to recognize any component changes.
2. Because organizational employees carry out quality improvement initiatives, employees are
empowered to make accept/reject decisions about products throughout the manufacturing
process according to the Northrop Grumman Corporation plant in Rolling Meadows. It's
important for us - managers to look at how they can best organize and lead them. Ex: stay in
touch with textile factories and track their progress of screening job applicants’ resumes so
that they select the most skilled people to maintain effective performance, by the way,
reducing the chance that they will hire people who lack the necessary skills or experience.
That way, problems can be prevented rather than having to correct them after any damage.
Otherwise, quality-driven organizations rely on offering well-trained programs, rewards to
empower workers in improving their performance.

(Saskatchewan - plant manager of General Cable Corporation, Giving people who are running the
machines the information is just paramount. You can set up your cellular structure, you can cross-train
your people, you can use lean tools, but if you don’t give people information to drive improvement,
there’s no enthusiasm)

3. To prevent problems arising in the transformation process, considerable investment on

technology and equipment maintenance and renovation from time to time during the
manufacturing, dyeing and sewing fabric processes. Situations related to the wear and tear
in the machinery need frequent attention and it should be maintained on time or properly
replaced to avoid negative effects on the product quality and keep a flowing transformation
process.
4. When materials become finished goods, It is very important to compare the actual
performance of the products against a standard in the quality aspects and require checking
the quality parameters regularly. After stating the yoga product’s criteria such as fabrics with
stretch, quickly dry and absorb with various models to meet customer expectations, this
comes to the next step of comparing if the product’s quality has met the standard or not. By
continually comparing the variance among standard and newly produced products to
determine whether the variance is acceptable or not, further identify the cause of it and make
timely corrective action. As the manager, we need to enhance proper product testing by live
 models to realize that the pants were see-through and that colors bled when used during
exercise before selling them to prevent lost revenue, customers and poor-quality products.

5. In quality management, it is not only to maintain the product’s quality but also to innovate
and improve product criteria to meet customer’s needs or expectations. It is important to find
out what customers want and try to do then develop solutions (according to a plant
manager of Northrop Grumman Corporation plant in Rolling Meadow). Customers who
bought and wore the signature pants were dissatisfied with the current fabric material and
there were some comparisons between the prior cottony fabric pants and some recently. There
has been a change in material from cotton to nylon for cost reduction, but the nylon fabric’s
biodegradability is almost zero, it will affect and pollute the surrounding environment. As the
report of 2,000 U.S. and U.K.-based shoppers surveyed, revealed that 52% of consumers do
want the fashion industry to follow more sustainable practices. This implies continuous work
to improve all stages of the product’s life cycle, from design, raw material production,
manufacture used in the most sustainable and environmental manner possible. So as a
manager, we are encouraged to capture the trend and solve the current problem by offering
fabric material change from nylon to cotton for sustainable fashion.

FORMAT TRẢ LỜI CỦA 1 CASE

OUTLINE CHUNG CHO TỪNG CÂU HỎI

● ISSUE
● CAUSE
● SITUATION/ CONDITION/ CRITERIA
________________________________________________________________________
- EXAMPLE CASE (PM TEXTBOOK)
- LO.X (PM TEXTBOOK)
- CHAPTER X
- EXHIBIT X
- TABLE
- Specific answers
Zappos (page 62)
1-17. What is a holacracy?
1-18. What benefits do you see to an organization where there are no job titles, no managers, and no
hierarchy?
1-19. What challenges does a holacratic approach have?
1-20. Discuss why you would or would not like to work in an organization like this.
Manchester City (page 106)
2-15. What types of decisions are made by football managers? Would you characterize these decisions
as structured or unstructured problems? Explain.
2-16. Describe how big data can help football managers to make better decisions and how this has an
effect on the decision-making process.
2-17. What type(s) of conditions are more likely to influence the performance analyst team’s work:
certainty, uncertainty, or risks? Explain.
2-18. Do you think it is appropriate for football managers to use only quantitative information to
evaluate their players’ performance during a season? Why or why not?
2-19. How can big data transform football decisions in the future?
Tableau (page 139-140)
3-18. Tableau staffs its international offices primarily with host country nationals. What are the
advantages and disadvantages of this staffing strategy?
3-19. Do you agree with Chabot that the company will benefit if more executives spend time in
international offices? Why or why not?
3-20. As Tableau executives get ready to spend time in the company’s international offices, how can
they prepare for the cultural differences they will encounter?
3-21. What are some of the challenges Tableau will face as it hires 1,000 new employees in one year?
Deutsche Telekom (Page 174)
4-18. What do you think of the “quota” approach that Deutsche Telekom is pursuing? What benefits
and drawbacks does such an approach have?
4-19. What issues might Deutsche Telekom face in recruiting female university graduates? How could
they address these issues?
4-20. What issues might the company face in introducing changes in work–family programs? How
can these issues be addressed?
4-21. What workplace diversity initiatives, discussed in the chapter, might be appropriate for
Deutsche Telekom? What would be involved in implementing these initiatives?
Costco (page 338)
9-19. How is Costco’s business model different from other retailers such as Walmart and Sam’s Club?
Why do you think Costco’s strategy works?
9-20. Beyond lower turnover, how else does Costco benefit from treating its employees well?
9-21. Are you surprised that Costco sells cars? How does offering diverse products help the company
attract new members?
9-22. Costco now has a comprehensive website and sells online. Is this a threat to Costco’s business
model? Is there a downside to selling online?
Fear of failure (page 374)
10-10. Why do so many entrepreneurs experience failure?
10-11. Do you think someone could be an immediate success when starting a business? Or is a first
failure really necessary?
10-12. Is a growth mindset something you are born with? Or, can you develop a growth mindset?
Global supply chain (page 378)
You see the challenges associated with a global supply chain; what are some of the benefits of it?
What can managers do to minimize the impact of such disruptions?
• What types of plans would be best in these unplanned events?
• As Chapter 9 asks, how can managers plan effectively in dynamic environments?
• Could SWOT analysis be useful in these instances? Explain.
• How might managers use scenario planning in preparing for such disasters? (Scenario planning is
discussed in the Planning and Control Techniques module)
Pfizer (page 408)
11-13. Describe and evaluate what Pfizer is doing with its PfizerWorks.
11-14. What structural implications—good and bad—does this approach have? (Think in terms of the
six organizational design elements.)
11-15. Do you think this arrangement would work for other types of organizations? Why or why not?
What types of organizations might it also work for?
11-16. What role do you think organizational structure plays in an organization’s efficiency and
effectiveness? Explain. (conditions, so sánh giữa mechanistic và organic)
Maersk China (page 474)13-15-14-16
13-13. Why does human resource management represent one of the major challenges faced by foreign
companies entering the Chinese market?
13-14. What are the main issues expat managers generally face?
13-15. Why don’t foreign companies simply hire local staff instead of reaching out for foreign
managers?
13-16. What advice would you give companies such as Maersk on their human resource management
policies?
GG India (482)
Suppose you’re a manager at Google’s Hyderabad facility. How would you gauge a potential hire’s
ability to work as a team member, and how would you maintain your team’s innovation when new
engineers and designers join the group?
Amazon (514)
14-13. Can a manager provide honest feedback to employees without being confrontational? 14-14.
Do you think the Anytime Feedback Tool is a useful communication tool for an organization? Why or
why not?
14-15. How could Amazon eliminate concerns with employees using the tool to sabotage other
employees?
14-16. Would you like to work in a competitive organization like Amazon? Why or why not?
Tencent (546)
15-13. Do you think the work culture at Tencent is effective? Would it work in other organizations?
Why or why not?
15-14. How would an understanding of organizational behavior help Ma Huateng? What do you think
will be Tencent’s biggest challenge in the future?
15-15. Using what you’ve learned from the various behavior theories, what does Tencent’s situation
tell you about employee behavior?
15-16. Looking at the incentives system offered by Tencent, what does that tell you about the
importance of understanding individual behavior?
Employee engagement (625)
(1)• What role do you think external factors such as the global economic downturn or a country’s
culture play in levels of employee engagement? Discuss.
• What role does an organization’s motivational programs play in whether an employee is engaged or
not? Discuss.
• How might a manager’s leadership style affect an employee’s level of engagement? Discuss.
• Look at what we discussed about managerial communication in this part. What could a manager do
in the way he or she communicates to affect an employee’s level of engagement?
• You’re a manager of a workplace that has different “generations.” How will you approach engaging
your employees? Do you think Gen Y employees are going to find it more difficult to “engage”?
Discuss.
Chipotle (659)
18-13. Why is it important for Chipotle to revise the company’s food-handling standards?
18-14. Which controls would be more important to Chipotle: feedforward, concurrent, or feedback?
Explain.
18-15. How can Chipotle make sure that employees are following the new food handling standards?
18-16. What are some measures of organizational performance that Chipotle management should use?
BYOD (660)18-20-19-17
18-17. Would you want to use your personal device for work purposes?
18-18. Can you think of any other privacy or security concerns for companies that have a BYOD
program?
18-19. Given the privacy and security concerns, are BYOD programs really a good idea for
companies?
18-20. Are there any productivity concerns with allowing employees to use their personal devices at
work?
Lululemon (696)Pretend you’re part of the management team. Using what you’ve learned in this Part
on monitoring and controlling, what five things would you suggest the team focus on? Think carefully
about your suggestions to the team.