All Opening Cases For Organizational Behavior A Skill-Building Approach 3e Christopher P. Neck

Instructor Resource Neck, Organizational Behavior 3e SAGE, 2024

All Cases For Organizational Behavior A Skill-Building Approach 3e Christopher P. Neck Chapter 1-16

Case Notes Chapter 1: Why Organizational Behavior Matters Summary Hilton is one of the world’s largest and fastest growing hospitality companies, dubbing what has become known as “The Hilton Effect.” Contrary to some companies’ foci on branding and facilities, Hilton has become effective via investing in the skill building and well-being of their employees, their human capital. In addition, Hilton’s senior leaders embed themselves in the everyday ground operations via their immersive training program, evidencing that “people matter.”

Analysis Hilton has succeeded by being people focused. Hilton employees are trained in the skills they need to succeed, but they are also encouraged to foster their natural abilities. Moreover, company leaders work alongside those essential to day-to-day operations so that all become truly invested in the success of the company. Moreover, the company’s handling of the COVID19 pandemic was above and beyond what other companies did and made employees feel safer during what was an unprecedented era. These features have made Hilton not only a household name, but a company that has had a positive impact on the world via their human capital.

Case Questions 1. Hilton management was so keen on explaining the company‟s organizational behavior that they commissioned consultants to write “The Hilton Effect.” How do you think the publication serves to predict and influence organizational behavior at Hilton? a. “The Hilton Effect” report demonstrates the successful precedent that Hilton has set over the last century. By demonstrating the effectiveness of investing in human capital, Hilton leaders are encouraging present and future employees to do the same, though some might be tempted to focus upon facilities or branding, for example. It provides a road map for future behavior by showcasing company values and practices that have been successful previously.

Instructor Resource Neck, Organizational Behavior 3e SAGE, 2024

2. Describe how Hilton‟s management of human capital gives them a competitive advantage in the hospitality industry. Do you think their workforce‟s strengths are rareness, value, inimitability, or a combination of all three? a. It is likely a combination of all three. Hilton has fostered their employees‟ exceptional talents and skills, which fosters rareness. To some extent, the Hilton company has also trained employees to have inimitable skills that are not easily emulated, which makes them a unique asset within the hospitality industry. Lastly, by communicating each employee‟s worth to the organization, Hilton has designed a company where employees want to work toward shared, common goals, which evidences value.

3. This case study examined Hilton‟s OB on the individual and organizational levels. How do you think “The Hilton Effect” or the company‟s responses to the COVID-19 pandemic affect OB on a team level? a. During the COVID-19 pandemic, employees felt secure and valued by the company‟s response and provisions. This level of investment in employees facilitates a team atmosphere in which employees can focus on the company‟s mission and vision, rather than facing job and well-being insecurities that may distract them from the company‟s goals.

Case Notes Chapter 2: Diversity, Equity, and Inclusion Summary Dolby Laboratories, an American company that now spans time zones, languages, and cultures worldwide has used innovative hiring practices to ensure it meets its diversity, equity, and inclusion goals. These practices have paid dividends to the company’s employees but have also supported Dolby’s research and development goals by expanding viewpoints and ideas.

Analysis Dolby’s commitment to DEI broadened beyond the traditional inclusive hiring methods into an intentional, more in-depth attempt at fairly evaluating job applicants. Then, once hired, employees can join one of 13 volunteer-led Employee Networks that allow workers to find likeminded individuals with whom they can build a sense of community. The Employee Networks also give employees a voice in how they are treated and reached within the corporation.

Case Questions 1. What is blind hiring and how can it reduce biases in the recruitment process?

Instructor Resource Neck, Organizational Behavior 3e SAGE, 2024

b. Blind hiring is a common practice for reducing bias in recruitment. Traditional blind hiring techniques redact applicants‟ names and other identifying information from their résumés, which can help job seekers avoid being evaluated differently by recruiters who have biases, which may include, but are not limited to, a preference for one sex over another or names that reflect a particular race or ethnicity.

2. Where do facially unbiased hiring practices fall short and what did Dolby Laboratories do to complete the DEI triad? b. It is difficult to hire employees without interviewing them, and applicants‟ appearances can trigger hiring biases. To avoid this, Dolby hired GapJumpers, which allows them to simulate the blind hiring techniques possible heretofore in auditions only.

3. Describe some of the day-to-day benefits of Dolby‟s Employee Networks. If you were at Dolby Labs, would you join any of the 13 existing ENs? Would you create your own? b. The largest benefits to Dolby‟s Employee Networks are community building and voice.

When employees have a network of other employees that are like them, they feel a sense of community that is intentionally built. Moreover, the Employee Networks give employees more of a voice regarding their needs within the company. (Student responses on whether they would join an Employee Network and/or start their own will vary.)

Case Notes Chapter 3: Personality and Individual Differences Summary The PEAK Fleet is a values-driven organization that takes its name from four core values. More specifically, the company’s mission involves helping organizations succeed by creating more engaged work forces. The company helps organizational leaders understand that, though two employees may share the same values, they may disagree in how to implement those values.

To do this, founders Jen Coyne and Brian Stinson have developed specific, targeted behavioral exercises that they share with businesses.

Analysis The PEAK Fleet helps companies prioritize four main values: Persistence, Empathy, Authenticity, and Kindness. More specifically, through keynote speakerships, engaging workshops, leadership events, advisory services and more, the PEAK Fleet team encourages team leaders to keep workers engaged and create a space where they can better understand one another and themselves so that they can grow and thrive.

Case Questions 1. Would you have chosen the same four core values as the founders of the PEAK Fleet? Come up with two additional core values that can transcend personality differences and make an organization more effective.

Instructor Resource Neck, Organizational Behavior 3e SAGE, 2024

c. Student answers will vary. A sample answer might be “I feel that the values of Persistence, Empathy, Authenticity, and Kindness are important to organizational success, so I likely would have chosen those. However, two additional values that could be added are Loyalty, because of the importance of remaining steadfast in one‟s obligation to the organization, and Teamwork, such that everyone has an important and valid role to play in the work that needs to occur.

2. Are you surprised by Brian‟s assertion that Benefit Corporations For Good are often more amenable to core values conversations? How else might you “translate” these terms the way the PEAK Values Card Deck exercises do? c. This assertion is not too surprising. In some sense, it feels as though some organizational leaders have done the legwork needed to understand how common core values benefit all and others have not. Other ways of translating and communicating these values could stem from role playing certain company scenarios. Focus groups and interpretive skits may also be engaging ways to convey the importance of the values.

3. Think of a time your core values were challenged by a coworker or a superior. Looking back, how might you have responded differently if you better understood each other‟s perspectives? c. Understanding where someone is coming from helps one frame the reason for the challenge. Otherwise, it can feel like a personal attack, when really it is a way to better understand and possibly regroup for better organizational effectiveness. In addition, when you understand someone‟s rationale for asking, the frame also shifts from a challenge to a growth opportunity.

Case Notes Chapter 4: Perception and Learning Summary Since its founding in 2005 as a podcasting platform, Twitter has evolved into a status-updating microblogging platform. Today, Twitter is hugely successful with over 3.8 billion in revenues, 5,500 employees, and over 206 million daily users worldwide. Twitter has established a culture that empowers employees to explore, find data, build things, and generally choose the course of action that will have the most impact.

Analysis Twitter has always been one step ahead of its competitors by being able to adapt quickly.

Employees learn by emulating the behavior of managers and are empowered to explore new ideas and develop their skills in the workplace. Employees who don’t strive to learn eventually lose their jobs. This has been the key to Twitter’s success.

Instructor Resource Neck, Organizational Behavior 3e SAGE, 2024

Case Questions 1. What was valuable about Evan Williams‟s decision to task his employees with mustering up a new business idea? a. It did two things: (1) It empowered his employees to have a say in the company‟s direction by giving value to their creativity, and (2) it challenged the employees to think outside of the box, eventually requiring them to learn new skills in order to navigate the new type of service they would eventually provide.

2. How are employee empowerment, adaptability, and on-the-job training related? a. When employees are empowered to have a say in what goes on in the business, they will likely spark new ideas and move the business in different directions.

When the business moves in new directions, employees will need to learn new skills in order to add value to the new operations. When the employees are able to do this effectively, then the business will be better equipped to adapt to changes in the markets.

Case Notes Chapter 5: Emotions, Attitudes, and Stress Summary From its founding in 1996, Under Armour has seen its revenue grow from $17,000 to $4.5 billion. The founder, Kevin Plank, has faced many stressful situations and has successfully turned unhealthy levels of stress into healthy levels of stress, or eustress. For his employees, Plank works hard to build a team of passionate people with healthy emotions, positive attitudes, and low levels of stress.

Analysis To successfully operate in difficult situations with a potential for pressure and stress, Under Armour has been proactive—maintaining a relaxed work atmosphere, providing water taxi rides, yoga classes, and treating employees to big sporting events. A demanding workload, another potential source of stress, becomes more mentally and physically bearable because the employees build an affinity with the brand. Under Armour makes constant efforts to reduce stress and resolve conflicts.

Case Questions 1. How can personal stress affect the process of beginning and managing an organization, and how can you confront this?

Instructor Resource Neck, Organizational Behavior 3e SAGE, 2024

a. Personal stress can discourage many entrepreneurs, and it can stem from financial burdens all the way to overwhelming goals. To deal with these difficult stressors, managers can confront their problems head-on. Plank says that to start a company, you must “put your hands around the throat” of it and run it. In other words, managers must get out ahead of stress and manage it, instead of the other way around, where stress dictates the behavior of managers.

2. What types of things can management do to relieve a demanding atmosphere, and why is this important? a. Under Armour offers things like yoga, relaxed dress, and discounted Under Armour gear in order to help employees relieve any anxiety that may come with entering the office. Companies must attempt to manage employees in a way that limits their worries and soothes their concerns. This is important because work effectiveness and employee retention increase when the environment is one that produces good attitudes and uninhibited work ethics.

3. Does managing one‟s own stress and attitudes play a role in managing those of others?

Explain. a. Yes; until managers have their own emotions and attitudes turned toward a productive end, they cannot understand the problems of their employees.

Providing the right work environment starts with the personal attitude of those in charge. In the case of Under Armour, if the CEO had succumbed to negative stress in the beginning phases of the company, it would have never grown to have the success it has now. The company puts an emphasis on positive, encouraging corporate offices, because then corporate employees can better manage the huge web of Under Armour retailers and employees.

Case Notes Chapter 6: Motivation: Concepts and Theoretical Perspectives Summary AriZona Iced Tea is unique in the non-alcohol beverage market. It does not spend money on advertising and has kept its price per can at less than a dollar since its founding in 1992.

AriZona Iced Tea dominates their portion of the market with a loyal customer base and a motivated workforce.

Instructor Resource Neck, Organizational Behavior 3e SAGE, 2024

Analysis Several things led to AriZona Iced Tea’s success. These include the founders’ commitment to maintaining the price per can at less than a dollar, a loyal customer base, and a workforce fully motivated to lowering costs. To reduce costs, AriZona Iced Tea has reduced the quantity of aluminum per can, improved the efficiency of their packaging process, and decentralized their canning centers. Also, by printing the 99¢ price on each can, merchants are discouraged from charging more than 99 cents.

Case Questions 1. What was the beverage market like in 1992 when AriZona entered? a. The beverage market was competitive and saturated with premixed teas like Snapple that had invested a lot of money in brand recognition through megaadvertising campaigns.

2. How did AriZona Iced Tea differentiate itself from competitors and maintain dominance in their segment? a. AriZona Iced Tea differentiated itself from competitors as a cost leader by not having any expensive ad campaigns that took money away from the thing that customers were actually paying for. They were able to come into the market with a lower cost because they put all advertising right on the can and put any savings toward their customers‟ wants.

3. Why have merchants kept AriZona products in their stores despite low margins per can? a. They have had no choice but to keep them stocked because the customer base of AriZona products is so loyal that they are willing to go somewhere else for it.

Case Notes

Instructor Resource Neck, Organizational Behavior 3e SAGE, 2024

Chapter 7: Motivation: Practices and Applications Summary As of Spring 2022, musical streaming giant Spotify had reported over 406 million active monthly users, 180 million of whom are premium subscribers, evidencing the explosion of both the music industry and Spotify’s place within it. The company’s workforce, which it calls “the band,” is now nearly 7,000 strong in 79 offices around the globe. Spotify’s approach to empowering employees to take ownership of their professional development and customizable compensation packages with unmatched family benefits led to the company being named Newsweek’s #1 Most Loved Workplace in America in 2021.

Analysis Even though they have thousands of new members, Spotify has stayed true to the original band, though they have expanded it to keep pace with rapid user growth and expansion into new markets. More specifically, Spotify hired over 1,000 new employees in 2020 alone. And, not only does Spotify hire new members of “the band,” they are also committed to developing their employees by encouraging a growth mindset. In addition, Spotify employees can customize their own incentive plan. This genuine focus on employee well-being evidences Spotify’s true commitment to and care for their employees.

Case Questions 4. How does GreenHouse, Spotify‟s learning and development team, promote employee psychological empowerment? a. GreenHouse explains that fostering the development of current employees is just as important as adding band members. To that end, the company focuses on a growth mindset, which emphasizes that anyone can get better at something with practice. At Spotify, giving people room to grow is about creating an atmosphere where mastery, autonomy, and purpose are possible for everyone.

5. Spotify‟s growth mindset emphasis explicitly seeks to stimulate intrinsic motivation among the band. Can you think of ways the company utilizes job design to that effect as well? a. Spotify employees are encouraged to research and learn about various benefits the company offers in order to customize their incentive plan. Moreover, there is a sense that the company cares about an employees‟ well-being and not just their performance, which is evidenced by the month-long shutdown the company enjoys each summer.

6. Give an example of how Spotify‟s Swedish-inspired extrinsic rewards can validate feelings of competence of self-determination and thus boost intrinsic motivation among the band.

Instructor Resource Neck, Organizational Behavior 3e SAGE, 2024

a. As noted above, Spotify employees are able to take a month off during the summer months to enjoy self-care. This fosters the notion that the company feels as though quality employees deserve a break. In turn, this may scaffold employees‟ feelings that they are valued, which may encourage them to be loyal to the company and work more efficiently and effectively when they are in the office.

Case Notes Chapter 8: Teams Summary During the fiscal year that ended June 30, 2020, the emergency department at Thomas Jefferson University Hospital in Philadelphia clocked nearly 125,000 visits. In emergency rooms that are this busy, the leave-without-being-seen rates (LWBS) can be problematic. Hospitals with high LWBS rates usually provide subpar nursing service and are often avoided by members of the public. The team of doctors and nurses in the emergency department at Thomas Jefferson Hospital set a goal to bring LWBS rates down below the national average and improve overall service.

Analysis To achieve its goal, the team needed to involve and empower all team members—department leadership, executive physicians, and nurses. The leadership employed the Delphi Technique to gather information from all team members. The nursing staff were fully engaged throughout the process. Management sought the perspective of all team members, recognizing that if it silenced and excluded some members, it would harm the operation. This cohesive team, with a strong mission, was able to achieve its goal.

Case Questions 1. What types of problems might the hospital have encountered had it not included the nursing staff in decision making? a. If nurses had not been included in the plan to reduce LWBS rates, the team would not have had access to some of the most valuable perspectives available.

Often, companies have employees who know and can easily identify room for improvement because of their hands-on experiences in the day-to-day operations. Nurses are this type of employee in most emergency room scenarios.

By including nurses in the process, the management team was able to easily identify problems and respond with new strategies moving forward.

Instructor Resource Neck, Organizational Behavior 3e SAGE, 2024

2. What was so valuable about seeing management engage in the new initiative alongside their subordinates? a. When employees see their manager actively participating in the overarching mission by being just as involved as the other staff members are, they will feel much more motivated to invest in and strive for the same goal. It reflects well on management because it proves to their employees that they care, want to succeed as much as everyone else, and that they are not afraid to carry some of the weight on their shoulders.

Case Notes Chapter 9: Decision Making, Creativity, and Innovation Summary With over 77,800 students and almost 18,000 employees, Arizona State University has earned the reputation as the most innovative university in the country. Their mission is to educate as many people as possible, and to do so, they measure success by the people they admit, not by the number of people they reject. The result is that the university has become a place of cultural, economic, and ideological diversity.

Analysis Arizona State distinguishes itself by marketing the university as a feasible path for anyone seeking a higher education. They pride themselves on inclusion, rather than exclusion. To be an innovative institution, the university continues to learn from its peers and also from the best practices in the business world. Arizona State extends its competitive edge with the largest corporate sponsorships in the university world.

Case Questions 1. What innovative decisions boosted Arizona State University‟s enrollment? a. ASU began priding itself on how many people they accepted into the university instead of taking pride in a low acceptance rate. In addition, ASU partners with other universities across the nation in order to understand their innovative approaches to education. Lastly, ASU strategically markets itself as a path for anyone seeking higher education.

2. How does ASU think about enrollment differently than competitors, and why do they think this way?

Instructor Resource Neck, Organizational Behavior 3e SAGE, 2024

a. ASU wants as large of a student body as possible. This is for two main reasons: Their mission is to educate as many people as possible, and it helps grow creativity, diversity, and innovation.

3. How could the practices mentioned in this chapter and case report be integrated into your workplace? a. Answers will vary.

Case Notes Chapter 10: Ethics and Social Responsibility in Organizations Summary For most of its history, IBM has been recognized as the gold standard of ethical business practices. From the early 20th century, Thomas J. Watson Sr., IBM’s founder, sought to build a corporate culture that emphasized innovation and outside-the-box thinking and also developed IBM’s basic beliefs of respect for the individual, the best customer service in the world, and excellence. Though in the early 1990s, IBM’s earnings dropped as it lost market share to competitors like Microsoft and Apple, Louis Gerstner, who was appointed CEO in 1993, turned the company around. By 2000, IBM had regained its place as a leader in IT consulting and web services organization.

Analysis Thomas Watson established the company motto “THINK” to encourage employees to be thinkers—creating and selling innovative machines. In addition, IBM consistently maintained a value-laden work environment for employees and ethical relationships with suppliers, partners, investors, and other market participants. IBM has intentionally communicated their values to all business members, both internally and externally. Building trust has been a key element in IBM’s success.

Case Questions 1. What was Thomas Watson‟s initial dilemma in uniting the Computing-TabulatingRecording Company? a. His initial dilemma in uniting the company was that it was formed from three smaller businesses that were in three geographically separate places. Therefore, Watson had to form a unified organizational culture for a business that was not all in one place.

2. Why did IBM stagnate in the early „90s?

Instructor Resource Neck, Organizational Behavior 3e SAGE, 2024

a. IBM stagnated in the early 1990s because it stopped innovating. Management and employees stopped focusing on their mission and the organizational culture that had gotten them to where they were.

3. What is one tool that IBM uses to monitor the ethical decisions across their company and its suppliers? a. The tool IBM relies on is strong communication. It dedicates resources and people to making sure that all sides of the business can communicate freely. A system like this makes it much easier to hear from suppliers and customers about the practices behind products, thus making it more possible to choose ethical practices.

4. What makes IBM very influential in the market regarding ethical supply chains? a. The company is so influential because of its massive purchasing power. When a company spends billions of dollars buying raw materials, it has the ability to threaten suppliers with unethical practices by revoking the partnership.

Furthermore, IBM is one of the largest technology companies, so it can serve as a role model to others.

Case Notes Chapter 11: Effective Communication Summary Since its inception in 2009, Uber has grown into a profitable company with over 11 billion in revenue in 2020 and 22,000 full-time employees in more than 10,000 cities worldwide. Despite its success, Uber is considered to have a destructive culture as a result of its communication processes. Uber’s corrupt culture is characterized by employees being pitted against one another, infractions being ignored when committed by top performers, verbal abuse, and reputation-damaging gossip. In June 2017, Uber hired an HR consultant to help fix its problems.

Analysis Poor communication has been identified as a source of Uber’s problems. Rather than communicating exceptions through clear, concise, and respectful messages, managers have communicated vague expectations, coupled with verbal abuse. Employees have been discouraged from communicating differing perceptions. Rather than being a healthy form of

Instructor Resource Neck, Organizational Behavior 3e SAGE, 2024

informal communication, the grapevine has been used to create a competitive culture that can destroy the reputations of employees.

Case Questions 1. Why is it important that differing perspectives are encouraged and praised as opposed to shut down and ridiculed like they were at Uber? a. Differing perspectives give rise to new ideas and new solutions to problems.

Innovation within a company is essential to success, and shutting out employees‟ diverse perspectives on situations is not the most efficient way to solve problems.

2. What network, formal or informal, is most important for a company to administer? a. The formal network is the most important network because the way the upper management formalizes communication throughout the organization sets the tone for what is considered acceptable behavior in the informal communication networks within the organization.

Case Notes Chapter 12: Trust, Conflict, and Negotiation Summary With annual revenues over $16 billion, the National Football League (NFL) ranks #1 in the world of professional sports. The formation of the NFL, now comprising 32 teams, reduced dysfunctional conflict involving bidding for players and secured cooperation in the formation of schedules. However, in 2011, conflict between the NFL Players Association and the owners resulted in NFL players being “locked out” from practices, facilities, and coaching. On July 30, 2011, the lock out officially ended and the NFL resumed operations.

Analysis Before the NFL was created, the possibility for unhealthy conflict between clubs for the best players and schedules was ongoing. With an organized league, conflict was reduced via improved working relationships among the teams. Addressing the conflict between owners and players in 2011 involved negotiations, court testimonies, the services of arbitrators, conciliators, and mediators—all of these involved a significant expenditure before consensus was reached.

The NFL is still working to reduce the lack of trust that lingers throughout the league.

Case Questions 1. What role did trust play in the NFL Lockout of 2011?

Instructor Resource Neck, Organizational Behavior 3e SAGE, 2024

a. There was a lack of trust between the players and the owners in 2011. This lack of trust was founded on unfair salary distributions and poor player safety, among other things. Simply put, the players felt like the owners did not care about them emotionally but only cared about profits. This started as a perceived/felt conflict stage.

2. Why was organizing a league in 1920 a better option than allowing independent clubs to take up much of the professional football market? a. Organizing a league decreased the potential for conflict by providing structure and organization. The league took responsibility for creating fair schedules, officiating, and other tasks that needed to be done by a third party mediator to ensure maximum fairness. Organizing a league also took the burden of these menial tasks off the shoulders of individual teams so they could focus more on football-specific matters.

Case Notes Chapter 13: Leadership Perspectives Summary Proctor and Gamble is recognized as a leader in its industry from how it treats its employees to how it manages its brand. Founded as a soap company, P&G now has 65 brands, generating over $76 billion in sales throughout the world. P&G is the world’s largest advertiser, and in fact, is regarded by many as the inventor of modern advertising. It is recognized by Fortune as the #1 Global Top Company and is #15 on the World’s Most Admired Brands list.

Analysis To achieve and maintain its leadership position in the market, P&G continually reassesses their product lines. In 2014, they cut 100 of their brands while keeping the 65 brands that generate 90% of their profits. Instead of following other businesses, P&G has continually broken new trails, entered new fields, set new records, and kept raising their standards. Consumers can have confidence that their products are safe, having been thoroughly tested. P&G has one of the most efficient employee training programs, priding themselves on their mentorship and leadership development programs, and becoming a very sought after place to work.

Case Questions 1. Why does Proctor and Gamble draw so many job applicants? a. P&G is able to draw so many job applicants because of its excellent leadership training programs and its well respected brand name.

Instructor Resource Neck, Organizational Behavior 3e SAGE, 2024

2. How did Proctor and Gamble influence the creation of their industry as it pertains to safety? a. P&G was one of the first household consumable brands to make safety a priority, and when the founders did this, all other competitors followed.

Case Notes Chapter 14: Influence, Power, Politics Summary Based in South Florida, NextEra Energy, Inc. is the world’s largest producer of renewable energy and has a subsidiary that provides publicly regulated electricity to nearly half of Florida.

With a mission to be the leader in the generation and distribution of clean energy, NextEra has many layers of legitimate power throughout both the corporation and its many subsidiaries. The company uses reward and referent power to successfully build employee commitment. Because members of large organizations like NextEra Energy are often tempted to give into corrupt organizational politics by giving and accepting bribes, the company has proposed solutions for this concern as well.

Analysis The NextEra corporate values are to be committed to excellence, to do the right thing, and to treat people with respect. NextEra devotes countless resources to achieving a committed group of employees. NextEra Energy dedicates millions of dollars through its human resources department to comprehensive employee benefits, which has resulted in employee loyalty to the company. To mitigate the risk of bribery, the company has set clear guidelines on the types of rewards that may be given and accepted.

Case Questions 1. Why should managers employ more than legitimate power to influence workers? a. As shown by NextEra, other types of power are essential to encouraging employee commitment. Legitimate power is often useful and necessary, but having referent power is an important way to influence employees because it fosters a mutual respect between employee and manager. NextEra employees who love the company value it partly because they appreciate their managers.

2. What is the purpose of monitoring organizational politics?

Instructor Resource Neck, Organizational Behavior 3e SAGE, 2024

a. In all industries, and especially the one in which NextEra Energy resides, there is a risk of bribery. This can lead to bad business deals, corrupt employees, legal battles, and more. Managers constantly tackle this risk by setting clear codes of conduct so that they can avoid dangerous scenarios or debts to business partners.

3. Describe how NextEra Energy maintains professional organizational politics. a. NextEra Energy employers treat all employees with respect and great care, both financially and through other benefits. Furthermore, their investors treat NextEra well, and vice versa. But, at the same time, NextEra sets guidelines on ethical gift giving and receiving, and they hold all members of the organization to the same high standards. They place value in remaining a neutral, fair partner to all of their investors and interests.

Case Notes Chapter 15: Organizations and Culture Summary As a leader in retail, Recreational Equipment Incorporated (REI) maintains a small store feel with an experienced staff that provides excellent customer service. Founded in 1938 as an outdoor equipment shop, REI has grown to over 15,000 employees with billions in revenue.

Originally an equipment shop for experienced climbers, REI now markets to less experienced customers in the family camping segment. Despite its continued innovation and growth, REI is consistently ranked as a top company for which to work.

Analysis To provide excellent customer service, REI hires and trains employees to be experienced with whatever they sell. In addition, REI believes that experienced employees are best qualified to recommend products to customers, and they create the best employees by hiring the most loyal customers. To maintain a positive culture, employees receive excellent benefits and are encouraged to share their thoughts and participate in debates. Moreover, REI chooses to close their stores on Black Friday.

Case Questions 1.

Why does REI need employees who are experienced with their equipment just to sell products? a. REI needs a staff with outdoors experience because, without that experience, employees will not have any passion for their products and will be less effective

Instructor Resource Neck, Organizational Behavior 3e SAGE, 2024

in properly recommending products to their customers. Additionally, because many of their customers are family campers and not considered experts in outdoor activities, the REI employees need to have increased expertise.

2. Why doesn‟t REI take part in Black Friday even though it is many stores‟ most successful day? a. REI does not take part in Black Friday because they want to communicate that they care more about taking care of their employees and fostering their happiness than their profit margins. To show REI is committed to this belief, all operations are stopped on Black Friday.

Case Notes Chapter 16: Organizational Change and Structure Summary There have been few companies in the world’s history that have had as profound an impact on human life in such a short period of time as Google. In just 18 years, it has grown from a twoman startup to 156,000 employees in 50 countries. Google has successfully implemented its mission “to create the happiest, most productive workplace in the world.” Google continues to adapt, change, and restructure itself to meet the challenges of an ever-developing industry.

Analysis To attract and retain the best possible employees throughout the world, Google offers aboveaverage compensation packages and accommodation allowances. Although Google attempts to be globally consistent, at times it has needed to change how it compensates employees in certain markets when its uniform model has not worked. To minimize resistance to change, Google implements new changes every day, effectively forcing employees to adapt. Google strives to maintain its positive workplace culture and be a different type of company.

Case Questions 1. Why might Google‟s tactics for employee compensation need to vary in different places in the world? a. Various cultures value different aspects of work. For example, Google recognized the employees in Dubai and the Middle East value personal contributions more than anything else, so they tied compensation to these things, which effectively gives Google a competitive advantage.

Instructor Resource Neck, Organizational Behavior 3e SAGE, 2024

2. Why do companies often run into resistance when trying to implement new organizational development and changes? a. Many organizations are based on a status quo – employees are hired because they fit into the organization‟s culture and grow accustomed to the way people act in and around the organization. This uniformity leads to structural inertia and tends to be a strong barrier to new developments and change.