Leadership in Organizations, Global Edition, 9th edition Gary A. Yukl Solution Manual

Type:

Solution Manual

Resource:

Leadership in Organizations

Edition:

9th Edition

Author(s):

Gary A. Yukl William L. Gardner

Contents Cases General Guidelines for Using the Cases . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 6 Case Analyses: Consolidated Products (Ch. 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 The Hour Glass (Ch. 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Acme Manufacturing Company (Ch. 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 UK Leisure Center (Ch. 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Echo Electronics (Ch. 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Tandberg Telecom (Ch. 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 In Feet First (Ch. 5) . .. . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . 17 Ready Foods (Ch. 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Svenson & Sons (Ch. 6) . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . 19 General Hospital (Ch. 6) . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 National Products (Ch. 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Farah (Ch. 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Metro Bank (Ch. 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 25 Astro Airlines, Parts 1 and 2 (Ch. 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Unethical Leadership at Enron (Ch. 9) . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 29 Crocodile Shavers (Ch. 9) . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 30 Cromwell Electronics (Ch. 10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 32 American Financial Corporation (Ch. 10) . . . . . . . . . . . . . . . . . . . . . . .. . . . 34 Dragon Wash (Ch. 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 Columbia Corporation, Case: Moon Events Corporation (Ch. 11) . . . . . . 38 Costco (Ch. 12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 39 Turnaround at Nissan (Ch. 12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

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Madison, Jones & Conklin (Ch. 13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 43 A Day in the Life of a Global Leader (Ch. 13) . . . . . . . . . . . . . . . . . . . . . . . 45 Federated Industries, Wilkinson, Crowe, and Mauley (Ch. 14) . .. . . . .. . .

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River Bank (Ch. 14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 49

Outside Exercises Description of Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Exercises: Student Journal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Managerial Behavior Diary ……………………………………………………

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Analysis of Leadership in Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Analysis of Famous Leaders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Analysis of Leadership in a Movie

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Description of Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Classroom Exercises

Exercises: Decision Styles Exercise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Influence Scenario Exercise . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . 67 Analysis of Visionary Speeches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Tower Exercise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Role Play Exercises Description of Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Guidelines for Using Role Play Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Role Plays: Save-Mart Role Play . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Union Chemicals Role Play . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 KB Sportswear Role Play .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

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Case Notes General Guidelines for Using the Cases The cases provide concrete examples of the abstract conceptions and principles discussed in the book. Most of the cases ask students to identify examples of appropriate and inappropriate behavior by the manager described in the case.

Students may be asked to recommend what the manager should have done differently or what the manager should do next.

For the more complex cases, it is usually best to have students analyze the case alone as homework and come to class prepared to discuss it. The shorter, less complex cases can be read and analyzed right in class, but the analysis is usually better when it is done as homework prior to class. After a case is analyzed individually by students, there are a number of options for discussing it.

One option is to discuss the case with the entire class. Of course, the larger the class, the less opportunity each member has for participation in the discussion. A second option is to form small groups to discuss the case separately and report back to the class on their findings and recommendations. This option is most suitable for a small class. A third option is to select one team of students that will analyze the case prior to the class and present their analysis during class. The remaining students are asked to read the case individually and critique the analysis made by the presenting team. A different team gets a turn to present each week. This approach is more appropriate for a larger class.

The following guidelines will facilitate learning from the cases. Some of the guidelines assume the use of small groups to discuss a case following individual analysis of it.

1. When assigning cases to students, explain the purpose of the case and how it will be used. Tell students what type of analysis they are expected to prepare for class.

2. The focus of the initial analysis should be to understand the leadership dilemmas in the case and what the case says about effective leadership, not to find solutions for specific problems. In making this analysis, students should try to use the concepts and theories discussed in the chapter. After a broader understanding is achieved, it is easier to determine what problems exist (if any), how they could have been avoided, and what the manager should do next to deal with them.

3. Emphasize the complexity of leadership situations and the tradeoffs faced by managers in making choices. Encourage students to consider different interpretations of the case rather than quickly focusing on a single, narrow interpretation. Encourage students to look for multiple causes of problems, rather than a simple explanation.

Students should try to understand why people acted the way they did in the case, rather than stereotyping them or looking for someone to blame for problems. Most of

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the cases depict managers with both strengths and weaknesses who are trying to do their job in a way they think is appropriate.

4. Just as there are seldom simple explanations for leadership problems, there are seldom guaranteed remedies. In cases describing a manager who was generally successful, ask students to consider what the manager could do to be even more successful, or if there are some completely different approaches that may also be effective in that situation. In cases describing a manager who has gotten into trouble, ask students to consider whether the person has some strengths rather than focusing only on weaknesses.

5. Encourage students to be open to alternative viewpoints when discussing the cases. Remind them that the group discussion will be more successful if one or two people do not try to dominate it and impose their ideas on the group. This guideline about being open-minded also applies to the instructor. Different interpretations of a case provide an opportunity to demonstrate how people approach a problem with different assumptions, biases, and priorities.

6. Vary the membership of small discussion groups over the semester so that students are exposed to different points of view.

7. Encourage students to relate the case to their own experiences. For example, ask students to describe examples of similar incidents they have experienced in current or previous jobs, or in other organizations in which they were members.

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Consolidated Products The purpose of this case is to provide students with an opportunity to use the behavior concepts presented in Chapter 2. One basis for comparing the two successive plant managers is in terms of task-oriented and relations-oriented leadership. However, these two broad categories are not sufficient for understanding what behavior is needed to be an effective plant manager in this company. Students also need to use more specific behavior categories to understand the limitations of each manager. Successive chapters in the book provide additional insights about this case that may not be evident after reading Chapter 2, and you may want to refer back to the case at later points in the course.

1. Describe and compare the managerial behavior of Ben and Phil. Describe each manager’s use of specific task and relations behaviors. How much does each manager use participative or inspirational leadership?

Ben was very concerned about employees, and his concern was reflected in efforts to protect employee jobs and make the work environment more pleasant. He socialized with employees, was supportive, and maintained an extensive network of personal friendships with employees. However, Ben had a relatively weak concern for productivity and product quality. He was satisfied to maintain the same level of production, and he did not set high performance objectives and quality standards.

Ben used supporting and some aspects of team building, but did little to develop employee skills and confidence. He did not use much planning, clarifying, and monitoring. Ben delegated the responsibility for supervising plant workers entirely to his first-line supervisors, but provided little guidance about what he expected. The case did not describe any active use of consultation by Ben. In contrast to Ben, Phil used a significant amount of task-oriented behavior (e.g., clarifying, monitoring, and operational planning). Phil set high performance standards, pressured people to achieve them, and checked closely on their performance.

However, Phil had little concern for employees and did not hesitate to make decisions that cut costs at the expense of employee benefits and jobs. Phil was low on relations-oriented behaviors such as supporting, developing, and team building. He was very directive and autocratic in making decisions and used little consultation or delegation.

2. Compare the two managers in terms of their influence on employee attitudes, short-term performance, and long-term plant performance.

Under Ben’s relationship-oriented leadership, employees were satisfied with the company, as evidenced by the very low turnover in his plant. However, employees were not highly motivated and did not perform up to their capacity. Ben’s plant had the second worst performance of the company’s five plants.

Phil’s lack of concern for employees was reflected in growing dissatisfaction and increased turnover among the supervisors and machine operators. Phil had a very short-term perspective on plant performance, which resulted in cutting expenses for

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development of human resources and maintenance of machines. He is the type of manager who makes a good initial impression based on the short-term indicators of financial performance, such as quarterly costs and production levels. However, the longer-term effectiveness of the work unit will suffer, due to the decline in human and material resources. Unfortunately, by the time the delayed, adverse effects of Phil’s actions become evident, he is likely be promoted and off to another position, leaving the mess for his successor to face.

3. If you were the manager of this plant, what would you do to achieve both high employee satisfaction and high performance?

A better balance of task and relationship behavior is needed. The plant manager should be supportive toward employees but also exhibit task-oriented behaviors such as setting challenging objectives and monitoring performance to ensure progress is being made toward achieving these objectives. It is better to delegate responsibility to supervisors (as Ben did) than to make all important decisions in an autocratic manner (as Phil did), but delegation without clear objectives and standards is ineffective.

There was no evidence that either manager used important behaviors such as recognizing and rewarding effective performance, developing subordinate skills, consulting with subordinates, and inspiring a strong sense of commitment to task objectives. Finally, investment in development of human resources and maintenance of physical resources affect long-term performance and should not be sacrificed for temporary gains in short-term performance.

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The Hour Glass This case gives students an opportunity to use the behavior concepts presented in Chapter 2. The case provides an example of an effective business leader who uses a variety of managerial behaviors to fundamentally frame the organizational unit. Although relations-oriented behaviors are more prominent, Jannie also uses relevant taskoriented behaviors.

1. What effective task-oriented behaviors were used by Jannie? *

Clarifying and informing: She is clear about the goals of the organization, and she provides clear, attainable performance goals for employees.

*

Monitoring: She checks on the work and progress in attaining performance goals.

*

Problem solving: She identifies the cause of work-related problems and takes action to deal with them.

2. What effective relations-oriented behaviors were used by Jannie? *

Supporting: She is fair and considerate and seeks to nurture employees and boost their self-esteem.

*

Consulting and delegating: She encourages employees to suggest new ideas for completing tasks more effectively and other ideas for improving the organization.

*

Recognizing and rewarding. She provides recognition for excellent performance, and profit sharing gives the employees a direct reward for high performance.

*

Team building and conflict management: To handle the simmering dispute between two sales teams, she brought them together in a meeting to resolve the conflict.

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Acme Manufacturing Company In this case students analyze the activities of a manager to identify effective and ineffective behavior. The analysis gives students an opportunity to identify weaknesses in time management and to propose remedies. The problems involve several managerial functions, including delegation, planning, and monitoring.

1. What specific things did Steve do wrong, and what should have been done?

• Steve is late for work because he overslept. He should have been more careful to set a backup alarm or to have someone wake him.

• Steve forgot the staff meeting with his boss at 9:30. He should have written it in his calendar and looked at the calendar before work.

• Steve has a disorderly office and could not find important memos and work orders.

He should maintain a better system of files and records.

• Steve delegated the rush order to a production supervisor (Lucy Adams) but did not monitor progress. Since he doesn't know what is happening with the rush order, he is not able to deal with any problems with it. He needs to have a system for monitoring progress on the tasks for which he is responsible, even when they are delegated to a subordinate.

• Steve does not know where Lucy Adams is and has no easy way to contact her. He should have subordinate managers inform him (or his secretary) when they are leaving the work site, and they should carry a pager or cellular phone.

• Steve went to an important meeting unprepared. As a result, he failed to impress his boss and peers. Steve should review the agenda and background materials for important meetings and be prepared to make a meaningful contribution.

• Steve concentrated on completing a production report that was less urgent than preparing quality figures for his boss. He should make a list of necessary activities with their priorities, and plan his time accordingly. If he were better organized, it is likely that Steve would seldom have to take work home.

• Steve spent more than an hour assembling the quality data for his boss. The task was urgent, but the time-consuming job of assembling the data was not difficult and should have been delegated to his assistant manager, or perhaps even to his secretary. Steve only needed to spend a few minutes to check the completed work and make sure it was done correctly before giving it to his boss.

• Steve wasted an hour attending a safety meeting that was not important when he had other things to do that were much more important. Unlike the earlier staff meeting, he was not required to attend the safety meeting and could have delegated this task to a subordinate qualified to handle it.

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• Steve never did talk to Lucy about the rush order or get back to the Sales Vice President as he promised, thereby leaving a poor impression. He should have had his secretary (or his assistant) arrange a meeting with Lucy as soon as she returned to the plant.

2. What should Steve do to become more effective as a manager?

Steve does not manage his time well. He is disorganized and messy, he does not plan his daily activities, he wastes time on activities that are not important, he forgets appointments and meetings, he does not delegate effectively, he does not monitor important activities for which he is responsible, he does not prepare for important meetings, and he fails to deliver on promises to important people. Steve needs to apply some of the principles of time management: • Make a list of short- and long-term objectives.

• Make a daily "to-do list" of activities relevant to the objectives, with priorities and deadlines. Use the to-do list and a calendar to plan and schedule relevant and required activities for each day.

• Delegate to qualified subordinates activities that are not critical, or that are important but require more time than he has available.

• Develop an information system to monitor projects and delegated activities.

• Use the secretary to screen calls and visitors effectively.

• Organize files, records, and desktop so important documents can be found easily.

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UK Leisure Center The purpose of this case is to provide students with a better understanding of flexible, adaptive leadership in a situation where the management of most similar government facilities are unable to achieve optimal performance.

Questions 1. Which of the intervening variables from the multiple-linkages model did the management consider in this case?

In this case, the managers sought to ensure high levels of subordinate effort and to clarify roles and task skills by investing in multiskilling and by offering training opportunities for staff employees. For example, the adoption of a participative style of management has ensured high levels of employee commitment, and the opportunity to undertake certified training has increased employees’ understanding of their individual responsibilities and has ensured that they have the necessary skills to undertake a range of tasks. The resultant multi-skilling of employees has facilitated more efficient utilization of personnel, while the increase in employee commitment brought about by the participative management style has enabled the center to make more effective use of both equipment and resources (organization of work and cohesiveness and cooperation). Meanwhile, the proactive stance adapted by the management in relation to the Park authority’s leisure services committee has allowed the center to secure additional resources and support services. The logical underpinning of these approaches has been a desire to ensure effective external co-ordination and high levels of community engagement.

2. What are the potential short-term and longer-term effects for employees at this leisure center?

The management strategies have both short- and longer-term motivational benefits for employees. In the short-term, the approach adopted ensures increased variety of work, improves the social conditions of work and ensures employee engagement with center activities. At the same time, employees’ longer-term career prospects are enhanced through certified training and skill development and by the experience gained through participation in making decisions.

3. Relate the case to the guidelines for adaptive leadership.

Management has made effective use of most of the guidelines for adaptive leadership.

The center’s management displays a high level of situational awareness and engages proactively with people who have relevant knowledge (e.g., health-care practitioners, community representatives) and provides relevant coaching and direction while ensuring that employees develop a high level of understanding of the interdependent nature of the various roles within the center. The management saw the prevailing bureaucracy as something to be challenged and pushed, so it took the initiative to drive new policy at the Park Services’ committee level and to shield the center and its staff from inappropriate top-down directives.

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Echo Electronics The purpose of this case is to provide a better understanding of the potential benefits of participative leadership. Students are asked to read a case describing a decision for which an autocratic decision was unsuccessful. The mistakes made by the manager in this case demonstrate the importance of consultation in making decisions that have important implications for both subordinates and the organization.

1. What actions could Paul have taken to prevent the problem?

Use of participative leadership may have prevented this problem. Consultation with employees about major changes is useful for discovering potential resistance to the change, gaining commitment to it, and getting suggestions on ways to implement the change more effectively. A major change in the work such as introduction of new equipment can have a very disruptive effect on people. The new workstations may be perceived by the workers either as an improvement or as a threat. The workstations offer a number of advantages, such as making the work more interesting, raising the skill level of employees, and providing an opportunity to increase productivity and product quality, thereby making the company more competitive and protecting the jobs of workers. Conversely, the workers may perceive the new equipment as a threat to their job security, because fewer workers will be needed if productivity is increased. Moreover, workers who are not computer literate may be anxious about learning new skills and worried that their experience and technical skills will become obsolete in a computerized factory.

A major change of this type should be introduced carefully to avoid negative reactions. The potential benefits for the company and the workers should have been explained before the changes were made, and the supervisors and workers should have been invited to participate in meetings to plan how to implement the changes effectively. Employees should have been encouraged to express any concerns and doubts about the feasibility of the proposed changes. The opportunity to discuss changes and influence them reduces anxiety and helps to avoid false rumors.

Whenever possible, Paul should have modified the planned changes to deal with employee concerns and utilize good suggestions, thereby giving the employees (and the supervisors) a sense of ownership of the changes.

Some other actions to ensure that the new workstations would be viewed as a positive change would help create trust and reduce anxiety. Paul should have tried to persuade top management to guarantee that no jobs would be lost as a result of the change. He should have looked for ways the workers could benefit from the changes, for example, by earning more after learning the new skills needed to operate the workstations. Paul should have made sure adequate training was provided to help the workers learn how to operate the new machines effectively.

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2. What steps should Paul take now to deal with the problem?

The first step is to determine the cause of the problem. It is not clear why productivity and quality decreased. Paul’s four supervisors disagree about the cause, and there is insufficient evidence to support their opinions.

There is no obvious deficiency in the equipment, but more investigation is needed to completely rule out this possibility. Paul needs more information about the timing, scope, and intensity of the problem. He should determine whether productivity and quality has declined for all of the workers, or only for some workers, departments, or shifts. If the company has a good records, data for the period prior to the introduction of workstations should be examined to see if the pattern was one of stable, increasing, or decreasing productivity and quality. Paul also needs to check with his contacts in other companies to determine whether they experienced a decline in productivity and quality the first few months after the workstations were introduced (it may be a natural part of the learning curve). Finally, Paul should consider the possibility that the problems are jointly caused by the workstations and some other condition unique to the company.

There is some evidence to suggest that the problem is due at least in part to worker resistance. Worker morale has declined, and two employees quit because they were upset about changes in how the work is done. These reactions suggest the new workstations may be viewed as a threat rather than a benefit, but Paul needs more information to confirm this diagnosis. Paul should hold meetings with groups of workers to discuss the problem and try to learn how the workers feel about the new workstations. If the workers trust Paul and share his objectives of improving productivity and quality, Paul can invite them to participate in finding ways to make the new workstations successful as a means of improving quality and productivity.

Paul may find that the problem has multiple causes, each requiring a different type of solution. Changes may be required in compensation, job design, work rules, job security, or training procedures. For example, if the workers were not properly trained to operate the new equipment, then new training should be developed quickly.

If the workstations are incompatible with existing production procedures, than some re-engineering may be needed. If the workers are afraid that the new machines threaten their job security, then the company needs to provide assurances that no jobs will be lost as a result of increased productivity. If the workers feel inequity, a pay increase may be appropriate to compensate them for learning the new skills needed to operate the workstations. Paul needs to persuade the CEO to approve any necessary changes. The fact that the CEO approved the initial plan for the change and shares part of the responsibility for its deficiencies may make it easier to get approval for the necessary changes.

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Tandberg Telecom The purpose of this case is to provide students with a better understanding of the benefits and pitfalls of participative leadership. Students are asked to read this case describing a participative approach in a global, technology-based organization. The accomplishments of the company and the context in which it happens illustrate not only the possible benefits of participation and empowerment but also some of the requirements in terms of recruitment, training, and other organizational constraints that need to be in place.

1. To what extent do you think Tandberg was able to reap the benefits of participative leadership and empowerment?

The great benefit of empowerment and participative leadership is the possibility of pushing decisions toward the front end of the organization. A high level of decentralization allows agile, flexible responses to local challenges and encourages employee initiatives. To a fledgling technology company in a global videoconferencing market, it was essential to be innovative and flexible and to keep autocratic topmanagement decisions regarding strategy, finance, and—to some extent—product lines to a minimum. In the beginning, no one would know how teleconferencing would develop throughout the coming years, so open-mindedness about products was just as crucial as the ability to deliver. The founders recognized that there was an underdeveloped but rapidly growing market where customers and salespeople would contribute to the development of uses and applications, and HQ needed to trust the local staff to pick up signals from customers, market, and technology developments.

The strong focus on flat structures, involvement, and empowerment had several benefits for the company. It was important to capture the interest of customers and show them that Tandberg employees were creative people who knew their products, were committed to finding solutions, and were able to get creative together with customers in finding configurations that worked. It was essential to ensure that information about innovative ideas, solutions, and customer requirements flowed freely back to the company’s product developers.

2. How would you assess Tandberg’s potential for facilitating empowerment (refer to Table 4-9)?

Tandberg satisfied almost all conditions on the right-hand side of Table 4-9, but this is not immediately evident. It came about as a strategy with the technology itself as the central point. All along, both hardware and software changed in ways that could be difficult to understand for salespeople and other non-technical staff. Technological devices could perhaps have spun off a type of business that focused on low-cost, standardized solutions and, other left-hand-side qualities. There were forces in the organization that would press toward this type of industrialized process, and some managers became representatives of the opposite tendency to rely on routines, standards, and less-skilled people. However, it was decided that customized application of complex, professional solutions to long-term customers would be more profitable. It was a strategic choice to go for products that satisfied the right-hand criteria, and it turned out not only to be more profitable but also to develop a motivating, developing momentum for the staff.

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In Feet First The purpose of this case is to help students understand effective leadership of change in an organization. The case describes a radical business owner who built a huge chain of massage parlors across. Unhappy with the way the chain developed, he gave the parlors away and started again. Students are asked to explain this approach and identify effective or ineffective behaviors and facilitating or constraining conditions.

1. Why did Zhu take such radical steps to implement change?

Rather than try to change the established organization and fight all of the franchise holders, Zhu took the unusual step of distancing himself from the chain. He could thus learn from the mistakes he thought he had made and create a new chain that he could control, maintain quality for, as well as lead the way forward. He did not feel that he had control over the former chain, nor could he easily adapt the chain, for it had simply grown too big, too fast.

2. How can Zhu better control the pace of change in his new look company?

Slower growth is the major factor here. Notably, he took time out before taking the decision to dispense with the old chain of franchises. With his new business, he can control the rate of growth and make changes that he considers necessary. By beginning again with just a few employees, he no longer has the responsibility of dealing with thousands of employees and franchise holders; he can expand in the direction he feels the business needs to move.

3. Evaluate the change leadership provided by the CEO. This is a radical form of change leadership. After the struggle to cope with the huge chain of massage parlors, the decision was to not manage them! Instead, Zhu effectively gave away the whole business. He recognized the mistakes that had been made and was determined this time to grow more slowly and deliberately and to create a business that was a better version of the old one. Work-life balance was obviously important to him. He felt that by surrounding himself with loyal, reliable employees who could understand his directives, he would be better placed to succeed. Radical internal change may not be necessary in the future provided that he has the formula right.

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Ready Foods The purpose of this case is to show students how not to implement a major change in a company, and what can happen if the leader assumes a planned change will be accepted and implemented effectively by employees, even though they perceive it to be unfair or unnecessary.

1. Why did Bruce fail to successfully implement the changes? * He failed to clearly explain why major changes were necessary to save the company and employee jobs, and his logic in assuming that cutting perks was a much better alternative than layoffs. * He neglected to include others in the decision-making/implementation process.

While he is the CEO and wields legitimate power, such power was not sufficient to secure the commitment necessary to effectively implement the change. * The timeline for the implementation of the changes also reflects a poor choice. While a sense of urgency is important, the impact (particularly the negative effects) and the necessary time for implementation should have been more thoroughly considered.

2. What could Bruce have done differently to have a better chance of successfully implementing the changes? * He needs to be transparent and explain how performance has been declining and why major changes are needed to save the company. He should explain the new vision he has for the company. He can also explain why he thinks cutting perks is a better option than layoffs, but remain open to other options. * He could have included key employees in the diagnosis, decision-making, and implementation phases of the change. The creation of task forces to analyze the problem and consider alternatives would have provided not only more useful insights, but also facilitated the inclusion of others who would be likely to be supportive and potential change agents. * Bruce could have rolled the changes out a little more slowly than he did. Rather than simply cutting perks, he could have informed people they would be cutting the unused perks, then the under used perks, and then the fully used perks. Or he could have provided a timeline for people to find alternative solutions to the problems that cutting perks would create.

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Svenson & Sons The purpose of this case is to help students understand the difficult power and influence relationships in many family-owned firms, especially during a change in leadership.

1. Describe the amount of power possessed by Elizabeth, her father, and the production manager.

Elizabeth has some expertise in marketing subjects thanks to her five-year stint as the sales manager, but she has little experience or expert power in production matters or strategy decisions for the company. Her father has more expert power with company employees regarding production issues as well as more recognized expertise in making strategic decisions for the company. In addition, as the former CEO for many years, he also probably has more acknowledged expertise with regard to sales issues compared to Elizabeth. As the owner of the company and the person who appointed the board members, the father also has a lot of position power. It is not clear how much expertise the production manager has with regard to the production-scheduling decision, which involves customer relations as well as production-scheduling issues, which is why he seeks advice from Elizabeth's father.

2. How can Elizabeth gain more influence over strategic decisions for the company?

Elizabeth could increase her recognized expertise in strategy issues by making successful decisions that are less risky and controversial than her proposal for an international sales program. In addition, when she makes a controversial proposal, she needs to provide strong evidence that it is highly beneficial for the company and would not result in any negative effects for the current local suppliers. Finally, at some point she should discuss her role expectations and authority with her father and try to reach an understanding about their relative roles in making strategic and operational decisions.

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General Hospital The purpose of this case is to develop skills in analyzing power relations and understanding how power can be used to influence organizational decisions. The case is also useful for discussions about the ethical use of power.

A power analysis chart is helpful for understanding the power relationships in this case. Ask students to draw a figure showing any significant power relationships among the four parties (Jack, Mary, the board, the president of Standard). Draw four circles equidistant from each other, and write the name of each party inside one circle. To indicate a power relationship between two parties, draw an arrow from one circle to another (the arrowhead should touch the target), and label it with the types of power possessed by the agent. If the case is discussed in small groups, have each group do a power analysis chart and compare them when the case is discussed.

1. How much power relative to this decision did Mary, Jack, and the president of Standard Software possess, and what type of power was it?

Jack’s exclusive control over dissemination of information about the software packages gave him information power over the board. As the facility administrator who successfully managed the installation of other computer systems in the past, it is also likely that Jack was perceived by the board as the person with the most relevant expertise about the new software decision, which gave him some expert power.

Later, after the decision proved to be a poor one, Jack’s expert power probably declined, unless he was able to shift the blame to someone else, such as Mary.

Jack had position power over Mary, and he could use it to encourage her to include Standard Software among the vendors selected for final consideration and to discourage her from inviting board members to the vendor presentations as well as from attending the board meeting herself. It is not clear how much referent power Jack had over Mary before the decision, but it was probably reduced by the underhanded way he influenced the board.

Mary’s greater knowledge about the various software systems did not translate into expert power with Jack because he was not dependent on her expertise. Mary probably had little, if any, expert power over the board of directors. Jack may have mentioned that she had participated in the evaluation process, but they probably did not realize that she knew more about the options than Jack did. There is no indication Mary had any significant referent power with Jack.

There was reciprocal referent power between Jack and the president of Standard Software because they were friends. The president’s referent power over Jack may have been the sole basis for influencing him to recommend Standard’s software package. There is also some reciprocal reward power between Jack and the president of Standard. We cannot tell from the information provided in the case, but there may have been an explicit or implicit agreement to give Jack a tangible benefit in exchange for recommending Standard’s software package. If done in a subtle way,

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the president’s use of rewards may not appear as a bribe (e.g., they may agree to sponsor Jack for membership in an exclusive country club or take Jack on a golfing trip to a fancy resort and pay for all the expenses).

2. What could Mary have done to gain more influence over the decision?

This case shows the importance of developing a network of contacts with people inside and outside the organization. If Mary had a good relationship with some members of the board, she could have talked to them to make sure they knew about her investigation and her conclusions. Even without this type of network relationship, she may have been able to prevent Jack from distorting her conclusions by e-mailing a copy of the report (or the executive summary) to each board member at the same time she gave it to Jack. She could justify this action by telling Jack that she assumed he would want the board to have it in time to prepare for their meeting. This overt tactic is risky, however, because it may elicit Jack’s hostility and jeopardize her future career at General Hospital. Another, more indirect, tactic that Mary could have used was to encourage the president of the competing software company to lobby directly with board members. This tactic would be easier to use if Mary had a good relationship with top executives in the other companies and could rely on them to keep her role in the matter confidential.

Mary would probably not try to influence the decision directly unless she suspected Jack would try to distort or suppress her recommendations in his meeting with the board. It may not have been evident from Jack’s past behavior that he would be so biased and deceptive. Even so, there were obvious clues, such as his insistence on adding Standard to the list of finalists and his lack of interest in presentations by the other vendors. Mary may have been naive about politics and too trustful that Jack would act in the best interest of the organization.

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National Products The purpose of this case is to develop a better understanding of the implications of different motive patterns for managerial effectiveness. Students are required to identify the dominant motive of three department managers and evaluate their likely effectiveness if selected for a general manager position. The case can be used in different ways, but I generally use it in the following way.

First ask each individual to do the analysis alone, either in class or as homework.

Divide the class into small groups, and ask each group to reach consensus in about 15 minutes. When the groups have finished their discussion, ask the group leaders to post their results simultaneously. My experience is that most groups will be able to identify the dominant motive correctly. Discuss any discrepancies. Then ask how many people identified dominant motives for all three managers correctly by themselves before the group discussion; the number is likely to be much lower.

1. What are the dominant motives for each candidate?

Charley Adams: the dominant need is affiliation.

Bill Stuart: the dominant needs are achievement and need for independence.

Ray Johnson: the dominant needs are personalized power and need for esteem.

2. What are the implications of these traits for the success of each candidate if selected for the general manager position?

Most of the research on managerial motivation suggests that effective managers in large organizations are likely to have a socialized power motive (high need for power combined with emotional maturity), a moderately high need for achievement, and a relatively lower need for affiliation. None of the managers described in this case has the optimal motive pattern for a general manager in a large organization.

Charley Adams would tend to emphasize harmonious relationships too much in relation to task objectives; he would avoid making controversial decisions that would put a strain on friendships (e.g., asking subordinates to do extra work or make sacrifices necessary to achieve high performance).

Bill Stuart would tend to take too much personal responsibility for accomplishing the important and challenging tasks of the group and would not delegate enough or spend enough time developing subordinates.

Ray Johnson would be domineering and insensitive with subordinates and would probably fail to develop cooperation, trust, and teamwork with them or with his peers.

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3. Should Susan recommend one of these candidates for the position or look for other candidates?

Susan should look for external candidates (or find other, better-qualified internal candidates). As noted earlier, none of the three current candidates has the motive pattern usually associated with effectiveness as a middle manager in a large organization. It is also important for a general manager to have some knowledge and appreciation of different functional areas in the organization. There is little evidence that the three department managers have much expertise outside of their area of functional specialization. Susan should also consider implementing a better management development system for the company to increase the number of internal managers who are qualified for promotion.

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Farah The purpose of this case is to help students gain an understanding of various leader attributes and characteristics and to understand how some of those characteristics can help to explain the success or failure of a leader. The case examines the leadership attributes of two senior managers working for a huge fashion retail company. Students are asked to compare the attributes of the two directors, identify the positive characteristics that each director has, and finally provide some recommendations that can help in improving leadership by the two managers.

1. Assess the leadership skills, competencies, and traits of the new human resource director.

The HR director has good technical and conceptual skills, which are reflected in the ability to use his knowledge to analyze problems in HR and propose effective solutions.

However, his failure to form better relations with his staff and to provide support and assistance to them indicate weak interpersonal skills and weak emotional intelligence.

In terms of his traits, he has a strong need for power and esteem, which are reflected in his efforts to seek recognition and higher positions of authority and power.

2. Assess the leadership skills, competencies, and traits of the new digital marketing director.

The director of digital marketing at Farah Co. has strong technical skills, as demonstrated in her knowledge of software and ability to provide customized solutions.

She has strong interpersonal skills, as demonstrated by her ability to build good relationships with her staff. Finally, with respect to traits, external locus of control orientation is indicated by her belief that the external environment cannot be changed and her unwillingness to make changes in her department.

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Metro Bank The purpose of this case is to help students gain a better understanding of transformational leadership. The case describes the leadership behavior of a relatively low-level bank manager over a period of several months. Students are asked to analyze the case and identify examples of transformational leadership behaviors and their effects.

1. What leadership behaviors did Marsha use to change the branch office and motivate employees?

Marsha can be regarded as a transformational leader. She both inspired and empowered subordinates to achieve more than they initially expected. The bank employees came to see their work roles as crucial for individual and organizational success rather than as a thankless task. Employees felt increased pride in their work, and some old-timers acquired new aspirations and advanced to higher positions. In the end, Marsha was successful in transforming a branch bank with low morale, efficiency, and customer service to one with high morale, efficiency, and customer service. The following pattern of leadership behaviors were used to accomplish this outcome: • Marsha formulated a vision to give her branch bank (one of many branches) a distinctive character and a clear mission. This vision was formulated only after she had been in her new position for a few months and got to know her employees, the situation at the branch, and the politics of corporate headquarters.

• Her vision and strategy were communicated through her statements, decisions, and daily actions. She declared that opportunities for development would be available to all employees, not just to fast-track managers, and she followed up on her promise by negotiating access to the management development program for any employees who aspired to advance into higher-level management.

• She used developmental assignments and coaching to increase the managerial skills of her immediate subordinates.

• She planned and implemented changes in work procedures, including cross training to increase employee skills as well as customer service.

• She modified the appraisal/reward system to provide tangible benefits to employees who helped others learn.

2. Describe Marsha’s vision for the branch office of Metro bank.

Marsha’s vision involved the two strategic objectives of developing executive talent and providing quality customer service, and she looked for ways to integrate these objectives so that they would be mutually facilitative. Both objectives were consistent with the existing mission of the branch. Thus, Marsha did not propose an

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unconventional vision. What she did was to make these objectives more meaningful and relevant for regular bank employees. She increased both the ideological significance of the developmental objective for employees and the tangible benefits for helping to make the program successful. She improved customer service with changes (e.g., cross-training) that also enriched the jobs of bank employees.

3. Should Marsha be described as a transformational leader, a charismatic leader, or both?

This question can be useful for stimulating discussion about the difference between transformational and charismatic leadership. Although the question is difficult to answer without some information not included in the case (such as how the employees actually viewed Marsha), there is no evidence that Marsha was a charismatic leader. She did not engage in some key behaviors that increase attributed charisma. As noted earlier, she did not propose an unconventional vision; the objectives for the branch already included executive development and customer service. Her strategy for attaining the vision had some new elements (give branch employees more opportunities for advancement, reward employee contributions to executive development, use cross-training), but these changes were not so unusual as to make her appear exceptional. She did not engage in unconventional behavior or make significant personal sacrifices to achieve her vision. Although the branch initially had some discontented employees and lower than expected performance, there was not a serious crisis that threatened its survival. In summary, Marsha demonstrated considerable competence and creativity in turning around her branch, but she did not display exceptional genius in solving highly visible problems that are central to the survival and success of the larger organization. It is difficult for a low-level manager to become charismatic, especially in a highly-centralized organization such as this type of bank. The CEO is probably the only leader with the authority to make major changes in the strategy and structure of this organization (e.g., introduce successful new products or services, find innovative ways to reorganize the company, initiate a strategic merger or acquisition).

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Astro Airlines The purpose of this two-part case is to help students gain a better understanding of charismatic leadership. The case is fairly long, because it describes the behavior of the leader over a period of four years. The leader establishes a new company that has phenomenal success for the first few years, then quickly declines into bankruptcy. Students are asked to analyze the case and identify charismatic leadership behaviors and their beneficial and adverse effects on followers and the company. The analysis of Part 1 should be completed before doing Part 2.

Part 1 1. Describe Burton’s leadership behavior?

• He articulated an appealing vision of a new type of company with an emphasis on quality, informality, participative leadership, and self-management that would provide a unique and socially important service to the nation.

• His vision involved an unconventional strategy of no frills, one-class airline service with innovative scheduling of flights and in-flight ticketing. Other unconventional ideas implemented by Burton included elimination of status perks for executives, required ownership of company stock by employees, elimination of narrow role specialization, and emphasis on operational teams to do the work.

• He took advantage of every opportunity to persistently teach and affirm his vision, and he used emotional, symbolic language.

• Burton’s design for the new organization called for substantial empowerment of employees. There was an emphasis on participative leadership and selfmanagement. Top management met with advisory and coordinating councils to get their input on important decisions. These councils were composed of employees who represented the operational work teams.

2. Was Burton a charismatic leader in the company at this time?

Burton exhibited the key behaviors associated with charismatic leadership, and many of his employees viewed him as an exceptional leader. He articulated a nontraditional vision with ideological elements, and he used unconventional strategies to attain it. He was a dynamic, emotionally stirring speaker who made employees and investors believe his vision was possible. The new company experienced some early successes that gave his vision more credibility. Professional employees like the pilots were willing to accept part of their compensation in the form of shares in a risky new company, which is another indicator of their commitment to the vision and faith in Burton.

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Part 2 1. What dysfunctional aspects of charismatic leadership were displayed by Burton?

• Burton’s strong self-confidence and experience of early success may have resulted in an over-inflated self-assessment and excessive optimism about his strategic decisions. For example, in pursuit of a grander vision of quickly becoming an international airline (rather than a small regional carrier), he acquired other airlines that were already financially weak, thereby incurring a dangerous amount of debt that would contribute to the failure of the firm. In his plans to expand the number of routes and flights, he ignored the threat of reaction by powerful competitors, and he overestimated the number of people who would want to use his no-frills service.

• He was too focused on the big-picture aspects of the vision and neglected the details of its implementation. He did not spend the time necessary to identify and resolve serious organizational problems that stemmed in part from rapid growth and in part from some of his beliefs about the best way to organize. At one point he finally acknowledged that there were serious organizational problems and promised to deal with them, but continued to emphasize rapid growth rather than consolidation and refinement of the management systems.

• He became very defensive about his ideas and autocratic in his decisions, even though his ideology was one of participative leadership. For example, he assumed the responsibilities of the president when that position became vacant, he fired executives who disagreed with him, and he maintained tight control over the board of directors.

• The same optimism and adherence to unconventional strategies that made him appear brilliant and charismatic to employees and investors when the company was initially successful, made him appear rigid and incompetent when the company went into a sharp decline. In other words, his success with innovative strategies caused attributions about exceptional expertise, but these attributions rapidly changed when success turned to failure.

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Unethical Leadership at Enron 1. How can theories ethical leadership and leader influence on organizational culture be used to explain the unethical practices at Enron?

This case shows the potential influence of top executives on the ethical culture and practices of an organization, and it demonstrates the potential negative influence of unethical leaders. The actions by top executives at Enron created a culture that encouraged employees at all levels to use unethical practices that would support the biased reporting of profits to enhance their own income and job security.

It is apparent that the top executives were motivated more by their personal needs than by the type of values emphasized in the theories of ethical leadership. Top management set an example of improper behavior in their use of questionable financial practices and biased measures of financial performance. They created a reward system the encouraged employees to use unethical practices such as exaggerating income and manipulating prices. Investors in company stock were misled by top management, and also by the auditors and organizations providing favorable ratings of the company and its management.

2. What can be done to reduce this type of unethical leadership in the future?

The chapter does not directly address the wide range of answers that are possible for this question, and it is an opportunity to go beyond the narrow focus of the text to consider the growing literature on social responsibility and ethics in corporate management. There are many ways to encourage ethical practices and discourage unethical behavior by top executives of public corporations. It is essential to encourage strict enforcement of legal and ethical constraints on improper financial schemes, insider trading, biased financial reporting, and manipulation of markets. Compensation practices for top management should be modified to reduce the focus on short-term profits and stock prices at the expense of long-term prosperity and social responsibility. Recent efforts to make directors more accountable for the actions of top management should be assessed and improvements made if necessary. The independence of boards of directors could be increased by requiring that they include some members not easily controlled by top management, as is done in some European countries. Examples include members from unions, from banks and public pension funds with a large financial stake in the company, and from universities and nonprofit organizations that have strong expertise in effective management. Boards need an adequate budget and staff to gather information on their own rather than relying only on biased information from top management. It may also be helpful to increase the incentives and protections provided to whistle blowers who report unethical practices in their companies. Auditing firms and organizations that rate the financial condition of organizations or the quality of their management should be held accountable for providing accurate information. Finally, more emphasis on ethical leadership in business schools is another way to influence cultural values about management practices.

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Crocodile Shavers The Crocodile Shavers case demonstrates a common unethical practice used by companies; namely, false advertisements. The Advertising Standards Authority (ASA), the United Kingdom’s advertising watchdog, has a list of clear and firm cautions against misleading consumers about products (https://www.asa.org.uk/). The case aims to increase students’ knowledge of unethical standards, unethical leadership, and issues of integrity. The case describes the unethical behavior of a manager who wanted to aggressively promote his product in any way possible and did not take the possible consequences seriously. Students are asked to describe the manager's behavior and to relate the situational context to this behavior. Finally, the case asks students to think of ways to enhance ethical standards at the company and avoid similar consequences in the future.

1. Describe the unethical leadership behavior by Fred Johnson.

Fred Johnson lacked integrity and honesty, which eventually contributed to a weak culture. He engaged in unethical behavior that was disruptive to the organization and its members. He used his power and status in the company to influence the actions of other people. He focused on short-term gains and encouraged people to lie about product features, ignoring concerns about jeopardizing company integrity. Fred did not have the attributes of integrity and honesty necessary for ethical leadership. He created an unethical culture in the company not only through his personal influence but also through his dealings with his digital media manager.

2. What situational influences may have encouraged unethical behavior at Crocodile Shavers? *

The need for another year of product development to achieve the desired improvement risked the loss of the company’s dominant position in the market to competitors.

*

The success of the first model made it more likely that customers would believe exaggerated claims for the new model.

*

Lack of resistance to unethical behavior by David Right and other important employees made it easier for the leader to pursue unethical practices.

3. What could be done to enhance ethical leadership at Crocodile Shavers? *

Limit executive authority and position power by having an independent board of directors, establish procedures for appealing decisions made by an executive, and establish procedures to dismiss executives who misuse their power.

Create a code of conduct with clear standards for ethical behavior, integrity, and transparency and require all employees to sign it to send a signal that the company values ethical practices.

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*

Implement training programs for all managers on appropriate ways to deal with ethical dilemmas.

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Cromwell Electronics The case describes a manager who has developed an effective working relationship with some subordinate but not others. Students have an opportunity to use LMX theory and attribution theory to analyze the reasons why the manager has not been able to develop an effective relationship with some subordinates.

1. What theories from the chapter are relevant for analyzing the case?

The most relevant is LMX theory, which describes how relationships develop over time with different subordinates. Ed is trying to give all his subordinates an equal chance to develop a closer relationship. If they demonstrate drive and initiative, he provides more responsibility, recognition, and rewards. Some of the subordinates such as Pat have developed a favorable exchange relationship with Ed, whereas other subordinates such as Katie have not. The subordinates who are more independent and effective may also be using more self-management, although there is little in the case to verify this suspicion.

Attribution theory is also relevant to this case. Ed has attributed the weak performance of Katie (and two other new subordinates) as due primarily to lack of motivation. He does not seem to recognize that she lacks skill and needs more direction and coaching. Katie, on her part, is making the inaccurate attribution that Ed is showing intentional favoritism to some of the employees. She has also made the incorrect attribution that Ed does not care about mistakes, because he does not respond to them in the way she believes is appropriate, which is to tell her how to do the work correctly.

The conception of a courageous follower is also relevant to this case. Katie is unhappy about her relationship with her boss, but she is not being very proactive about trying to improve the relationship. Katie and the other two new employees who want more direction should ask to meet with Ed to discuss how they can become more effective contributors to the marketing unit. Acting together would provide some security in numbers and may encourage them to be more bold and assertive as followers. They should explain their needs and their desire to become more effective, while avoiding any direct criticism of Ed, which may make him defensive.

2. Evaluate Ed’s behavior as a manager, and identify effective and ineffective actions.

Consistent with the current fads in management training, Ed is trying to empower subordinates, make rewards contingent upon performance, and give subordinates an equal opportunity. However, he fails to appreciate the significant individual differences among his subordinates, and he does not understand the need to vary his behavior more across subordinates. It is not enough just to give subordinates an opportunity to demonstrate competence. He needs to develop more skill and selfefficacy in his inexperienced employees by providing appropriate instruction, coaching, and support. The development of an effective exchange relationship is not something that happens automatically in a sequence of reciprocal actions by the two

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parties. It is essential for a manager to meet with each subordinate periodically to negotiate the subordinate’s role and plan how to facilitate development of relevant subordinate skills. In addition, Ed should consider the feasibility of having his experienced workers share some of the responsibility for developing new workers. If any of the experienced employees want to advance into a management position, providing coaching and mentoring to a new employee is a good way to learn some relevant leadership skills.

3. What should Dan say or do now?

Dan has made a similar mistake in assuming that Ed understands how to perform his leadership responsibilities effectively. This is Ed’s first supervisory position, and Dan needs to provide more coaching to help Ed learn how to carry out his new leadership responsibilities. Ed received some formal training on how to manage subordinates, but he does not seem to understand how to apply some of the things he learned. As noted in Chapter 13, leadership training is seldom effective without appropriate follow-up activities, including encouragement, coaching, and support by the boss. Dan should meet with Ed to discuss in a supportive way how to improve his skills and leadership effectiveness.

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American Financial Corporation This case demonstrates the importance of careful planning and monitoring when making important assignment with a tight deadline. Students have an opportunity to identify typical mistakes made by managers in making assignments and evaluating subordinate performance. The case also encourages students to look at the relationship from the perspective of the follower and consider how subordinates can become more effective followers.

1. What did Betty do wrong prior to the meeting, and what could have been done to avoid missing the deadline?

The appropriate amount of monitoring depends on the complexity of an assignment, the likelihood of serious problems, and the reliability of the subordinate.

Since Don had missed deadlines previously, Betty should have been aware of the need for careful monitoring. At least one progress check was needed earlier in the project to make sure there were no problems or unforeseen complications. Moreover, Betty should have set a deadline that would allow enough time to review the report and make sure it was ready for the vice president. Unfortunately, Betty never checked to see how the project was going. She failed to check on progress prior to leaving on a trip, and she did not return Don's call when she was away, which would have let her know about the problem a little earlier.

When making the assignment, Betty should have asked Don to develop a brief action plan indicating key action steps and assigning responsibility for each one.

Betty should have met with Don soon after she made the assignment to review his action plan. Most likely a discussion of action plans would have made it clear that the figures should be checked for accuracy and completeness before doing the analysis, and it would have raised the issue of Don's need for more clerical support.

It is important to note that Don is highly motivated to do good quality work, but he needs some help in planning how to get assignments done on time. His compulsiveness may be making it difficult for him to delegate appropriate parts of a task. It is part of Betty's responsibility as a supervisor to help Don develop better planning skills and to learn how to delegate and manage his time better.

2. What did Betty do wrong in the meeting itself, and what could have been done to make the meeting more effective?

The immediate problem facing Betty is how to complete the report properly and quickly. Instead of focusing on this objective, Betty becomes preoccupied with criticizing Don and blaming him for the delays. She is sarcastic and insulting, she interrupts Don when he tries to explain what happened, she makes threats that are not necessary to influence him to finish the report, and she brings up other issues (messy office) that are not relevant to the immediate problem. This is not the time to be finding fault, and she is part of the problem. It is more appropriate to take a problem-solving approach and determine what needs to be done to quickly complete the report.

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3. What should Don have done to be more effective?

Don appears to be a low LMX subordinate who has made little effort to develop a more effective relationship with his boss. He should try to be more proactive about identifying his superior’s expectations and priorities for different aspects of the work.

Even though Betty did not ask for action plans, Don could have taken the initiative to prepare them for her review. The action planning would have helped Don determine if he needed more advice, assistance, or resources to carry out the assignment on schedule. It was also important for Don to keep Betty informed about his progress on the assignment. Accurate upward informing by a subordinate facilitates monitoring by the manager. Don should have asked for more clerical help if it was needed to complete the report on time. He waited until too long to inform Betty about the problem of the missing information. When he finally tried to contact Betty, he was not very persistent or resourceful (he could have sent her e-mail messages). Finally, Don could have applied relevant self-management and time management principles to become more organized and effective. Don’s future in this company would be more promising if he improved his image as a competent, reliable, professional.

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Dragon Wash The purpose of this case is to help students gain a better understanding of selfmanaged teams and the leadership challenges they entail. In particular, the case seeks to illustrate the environmental conditions where self-managed teams may not fit certain work contexts, such as the team make-up and corporate policies. The case also describes the leadership behavior of a manager who structured a car wash’s working process using self-managed teams. Students are asked to identify and describe the conditions that made self-managed teams inappropriate for this type of work environment and to identify alternative types of teams that would be a better fit.

1. Describe the conditions or problems that made self-management teams unsuccessful at Dragon Wash.

Answer: The nature of the work (very short, repetitive tasks that require little skill) and use of short-term employees make self managed teams impractical for the car wash. There are several contextual factors that made self-management teams unsuccessful at Dragon Wash: •

•

•

Unstable team membership: There was high employee turnover at the car wash, so the time required to know each other’s skills, attitudes, and behaviors was very limited. This prevented teams from building a stable bonding relationship with each other that would have led to better performance.

Inexperienced and unskilled workers: Most of the team members were fresh college and high school graduates who had little experience managing themselves or a team on their own.

Lack of motivation: Pay and benefits were lower than that of the competition, which lowered motivation among the workers, exacerbating many of the problems experienced in the case.

Instructors could ask students to elaborate on these points further and lead them toward an interesting discussion in class about these and other factors that students believe might be responsible for the problems. Instructors could also ask students to compare the setting that car wash teams work in to that of the audio systems plant workers, especially the level of skills and complexity needed in each.

2. Compared to the current type of team and the leadership behaviors portrayed in this case, what alternative work teams and leadership behaviors are more suitable in this situation?

Answer: It is probably not appropriate to use any self-managed functional or cross-functional teams, because the benefits of this option are unlikely for teams with high turnover and simple tasks. The short tenure of most employees may make it impossible even to have functional team leaders. Functional teams lack sufficient autonomy to set performance

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goals, but quality standards could be set by Chen for the different task performed by each functional team, and some monitoring of quality may be appropriate.

In this situation, external leaders have to be more closely involved in managing and directing the team given that the members have little work experience with processes of self-managed teams (i.e., setting own performance goals, establishing quality standards, etc.). Instructors can ask students to think of other interesting approaches for successfully motivating the team.

An option to using functional teams may be possible if it only takes one employee to perform each cleaning function (vacuuming, washing, drying), perhaps with a little assistance by the driver. If so, then it is possible to use cross-functional teams that are each composed of a driver, a vacuumer, a washer, and a drier. Each team would be collectively responsible for the overall quality of the work performed by their members.

Disputes between different teams are less likely to occur, especially if there is no sharing of equipment by different teams. Motivation to provide good service could be improved by providing a small but desirable reward each month for any cross-functional team with no customer complaints during the month. A reward could also be provided to any team that has stable membership for an appropriate amount of time. Chen could meet occasionally with each cross-functional group to discuss any problems and ideas for improving service. Good ideas could be rewarded and the ideas shared with other cross-functional groups.

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Moon Events Corporation The purpose of this case is to increase a student’s understanding of team leadership. In particular, the case introduces the students to some problems that can diminish team performance in the absence of effective leadership. The case involves an event-organizing company that is put in charge of handling a product launch for a manufacturer of preserves. Students are asked to identify the leadership problems and to think about ways to improve the team meetings.

1. What leadership problems impeded performance by the project team? * Team performance will be higher when the team’s members have a clear understanding of their roles and expectations and possess the skills needed to perform their roles. In this type of initial meeting of a project team for a new client, an important objective is to identify essential actions and likely problems and to ensure that members understand their roles and have the skills needed to perform them. The team failed to prepare a clear and adequate plan for performing the task and avoiding or quickly resolving likely problems. Some members lacked the skills required to effectively plan and perform their roles without more assistance from the team leader. * Team performance is stronger when the team leader is actively involved in planning, coordinating, and supportive team activities. The project team leader was not sufficiently involved in planning and organizing team activities, and there was not a qualified substitute leader in the initial planning meeting.

2. Describe some ways to help improve the company's project planning meetings. * The leader should provide a clear and comprehensive agenda for the initial planning meeting based on prior experience in similar meetings. It should describe the project and key objectives, identify the decisions and plans that should be made in the initial meeting, and inform members about necessary preparations for the meeting. If the project is similar to many past projects, best practices for dealing with common problems can be provided to facilitate planning essential action steps and avoiding or quickly resolving likely problems in the current project. * The team leader should emphasize the need for cooperation between members to achieve the team’s objectives. Mutual interests and shared values and objectives should be emphasized. Providing rewards based on team performance can motivate more cooperation and mutual assistance by members. The leader can arrange activities that involve enjoyable social interaction to increase cohesiveness and collective identification. Keeping members informed about progress in achieving their objectives can increase optimism and task commitment.

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Costco The purpose of this case is to show how the founder and CEO of a successful new company used an innovative strategy to make the company highly successful in a competitive market.

1. Explain the success of Costco in terms of the three performance determinants in flexible leadership theory (efficiency, adaptation, and human capital).

Adaptation: • The competitive strategy is price leadership, and the CEO insists on keeping prices as low as possible and lower than competitors, including Wal-Mart.

• Temporary special bargains create customer excitement, attract affluent buyers who normally would not go to a discount store, and increase impulsive purchases.

• Charging customers for the privilege of shopping at Costco provides a steady source of revenue and increases customer loyalty.

• Innovation in design and packaging is also important for making some types of products such as food items more appealing to customers.

Efficiency: • No frills and standardized design of facilities and displays minimizes costs.

• Not using any advertising reduces costs of marketing.

• Computerized inventory system maximizes efficiency.

• The savings from lower turnover costs, lower employee theft, and higher employee productivity more than offsets the higher cost of compensation.

Human Capital: • The strategy requires good execution by store managers and employees, and they are skilled and dedicated.

• Costco has generous pay, excellent health benefits, and a good 401(k) plan, all of which are better (lower employee contributions) than for other firms in the industry.

• The company policy is to promote from within the ranks, and workers at all levels have good opportunities for advancement.

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• All employees are trained to be friendly and helpful when customers need assistance.

2. What leadership behaviors and theories help to explain the strong influence of the CEO on the company and its continued success?

• When the company was founded he identified an effective strategy and a mix of management programs and practices that is compatible with it, and as the company grew he has encouraged innovation to help it adapt to changing conditions. These are examples of flexible, adaptive leadership.

• His humility is evident in lack of special privileges and low compensation relative to other companies. His concern for employees is evident in the high level of benefits and empowerment provided to them. These are examples of authentic and servant leadership.

• The clear vision, strong concern for employees, and the unusually high empowerment of employees in important decisions are examples of transformational leadership. He avoids impression management tactics that would encourage employees to attribute exceptional expertise to him, and there is no indication he is viewed as charismatic.

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Turnaround at Nissan The purpose of this case is to provide an opportunity to use concepts and theories from several different chapters to understand how effective leadership resulted in a successful turnaround of a failing company. The case involves strategic leadership, leading change, ethical leadership, cross-cultural leadership, leader behavior, skills, and traits, participative and empowering leadership, and developing leadership.

1. What was done to improve efficiency, adaptation, and human relations, and to minimize adverse side effects of the changes?

Ways to facilitate adaptation: • • • •

Develop a clear strategy for the company, and a clear focus on customers.

Communicate an optimistic image of a revitalized company at every opportunity.

Set an example of personal commitment and risk taking to promote change.

Encourage innovative thinking by the designers rather than just copying competitors.

• Gave designers more autonomy over design decisions for new models (reduced the previously dominant influence of the engineers).

• Authorize 12 new models that would appeal to customers.

Ways to facilitate efficiency: • Reduce fixed costs by closing 5 unneeded factories and reorganizing production in the remaining ones.

• Reduce the overall number of employees (by 4% of global workforce).

• Increase efficiency by reducing the number of components (chassis designs and engines) used in the different models.

• Eliminate or replace models that were not making a profit for the company.

• Reduce purchasing costs by cutting the number of suppliers and placing larger orders with the remaining ones.

• Reduce purchasing costs by ending unnecessary specifications from engineers.

Ways to facilitate human relations and resources: • Increase empowerment and cooperation by using cross-functional teams to diagnose problems and identify remedies.

• Empower subordinate managers and provide opportunities for them to learn from experience.

• Recruit new designer talent to improve innovation.

• Replace managers of company dealerships with more competent, motivated people who would increase sales.

• Change the compensation and promotion systems to tie them more closely to skills and performance.

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Minimizing adverse side effects: The efforts to improve efficiency could adversely affect human relations. To minimize this effect, he explained why the changes were necessary to save the company, he enlisted support from the unions, and he tried to minimize layoffs by using normal attrition and early retirements. He also provided opportunities for many laid off employees to find part time jobs at Nissan or regular jobs in subsidiaries, and the quick recovery eventually restored some of the jobs that were cut. The reduction in job security for managers and other non-union employees was balanced by more empowerment and the opportunity to earn bonuses and stock options.

2. What effective practices were used to identify and implement necessary changes in the strategy and the organization?

• Ghosn was careful to conduct an intensive and systematic organizational diagnosis.

Detailed information was obtained about the performance of the company, and suggestions for improvement solicited from a wide variety of stakeholders.

• Soon after he began as COO, Ghosn formed several cross-functional teams to identify problems and recommend likely solutions. When problems were discovered, solutions were implemented (rather than sweeping them under the rug).

• People were kept informed about any changes, why they were necessary, and how they would be affected. He tried to minimize any negative effects of the changes on employees.

• A clear strategy was formulated to guide actions and help coordinate subunits. The cross-functional teams helped people to transcend their functional biases and understand how problems were viewed by other functions.

• The new strategy and planned changes were announced all together rather than as separate changes so that they would be more acceptable and resistant to criticism.

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Madison, Jones, and Conklin The purpose of this case is to provide a better understanding of the problems of sex-based discrimination in organizations that are reviewed in Chapter 14. The case describes the experiences of one woman manager in a male-dominated company.

Students are asked to identify examples of discrimination and suggest remedies.

1. What forms of gender discrimination did Laura experience?

The most blatant form of discrimination was the failure to promote Laura as rapidly as male managers with equivalent qualifications. Giving high profile projects to the male managers did not provide equal opportunity for her to demonstrate her potential. It may have been true that some customers preferred to deal with men, but this bias does not justify discrimination in assignments, especially when it is likely that these customers would have been as satisfied as Laura’s regular clients after they had an opportunity to work with her.

Another type of discrimination was the failure to ensure that she had a mentor and was receiving adequate career counseling. The case does not state that all of the male managers had mentors, but the implication was that no effort was made to ensure affirmative action regarding issues of career advancement for the single female manager in the organization.

Some other indications of bias were more subtle. Although not necessarily illegal, they contribute to the lack of equal opportunity. The failure to invite Laura to social activities limited her opportunity for networking with senior executives. The lack of attention to her comments during meetings undermined her credibility, and giving credit to someone else for her ideas reflects a lack of objectivity by senior management in evaluating her potential.

2. Is there anything Laura could have done to overcome the obstacles she encountered?

It is difficult for someone in Laura’s position to cope with gender-based discrimination. Attempts to sue the company for illegal discrimination are difficult to pursue without the support of other women. Laura could have pointed out examples of discrimination to the President and asked for his help. She could have been more proactive about seeking out a mentor among senior management to support her.

Finally, she may have been able to find some activities that would provide opportunity for networking with important people in the company and key clients (e.g., joining clubs and service organizations, learning sports enjoyed by male managers).

However, it is important to acknowledge that no matter what Laura did, it may have not been enough to break through the glass ceiling in this company.

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3. What could the President have done to create equal opportunity in this company?

There are several things the President could have done to promote equal opportunity and reduce bias. First, the President should have made a concerted effort to ensure objectivity and equal treatment in the assignment of projects and assessment of qualifications for promotion. Instead of offering platitudes, he should have followed up on her complaints about lack of career progress to determine if there was any unfair discrimination and take action to correct it.

To improve appreciation of diversity, a number of things could have been done. A diversity training program is one possibility. Another possibility is to set clear standards for equal opportunity and affirmative action, and include them in performance appraisals. He should have set an example in his own behavior of acceptance, appreciation, and equal treatment. Specific examples include showing proper respect during meetings, inviting her to social functions, and giving public praise for her contributions (as well as those by other managers). The President could have offered to serve as a mentor for Laura, or he could have helped her find a suitable mentor among the other senior managers.

As noted in the chapter, a number of things could be done in response to any continued instances of overt discrimination in the company. Examples include counseling the responsible parties, giving warnings, and if necessary, taking disciplinary action.

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CASE: A Day in the Life of a Global Leader 1. How can Nathalie think about cultural differences that might be affecting her team without resorting to cultural stereotyping?

As noted in the chapter (p. 361), most leaders are not experts on all of the different cultures they encounter. Rather, they develop personal qualities and capabilities that help them to observe behavior, unravel nuances, build trust, and adapt their approaches to be successful in a particular context.

For Nathalie, she should seek to understand her global employees, understand the layers of complexity in her organization, and understand herself. By doing so, she will be better prepared to effectively lead her team. When she sent an e-mail with the draft budget to her “team” members and requested their input, she found their responses (or lack thereof) to be highly frustrating. However, the content of the e-mails provides valuable insights into cultural differences that could help her to better understand the group’s dynamics. For instance, Lingfei did not explicitly disagree with the content of her e-mail, which could be due to the expectation in the Japanese culture that one will first establish a friendly relationship before opening up and sharing thoughts and conducting business. Lingfei’s reaction may also in part be a function of Japan’s lower level of gender egalitarianism, and he may experience some discomfort stemming from Nathalie's role as the leader of the team. These are potential explanations for Nathalie’s frustration with Lingfei, but she should not assume that they are true. Instead and should try to clarify their mutual expectations.

2. Does the lack of face-to-face communication contribute to Nathalie’s problem?

If so, how?

Yes, it is likely that the lack of face-to-face communication is contributing to the Nathalie’s problems. First, by using relatively lean forms of communication (mostly email), it is difficult for Nathalie and her team to garner insights about each other and their cultures. Thus, the necessary process of simply recognizing and unraveling cultural differences is more challenging. Second, some cultures require the establishment of closer relationships prior to conducting business. Limiting communication to lean media such as e-mails in many cases makes the formation of such relationships more challenging.

3. If we believe that cultural value differences are affecting the team’s efforts, what should be Nathalie’s next steps?

To improve the team’s communications, a valuable next step would be to help the members understand one another and their cultural backgrounds. Understanding one’s employees, the layers of complexity in one’s organization, and oneself are key requirements of a global leader. Promotion of enhanced understanding can help one move beyond reliance on cultural stereotypes to develop more accurate knowledge about each individual member. Next, there are a series of guidelines (found in Table 133) for managing diversity and promoting inclusion that Nathalie could follow. These recommended actions can be divided into two categories: (1) the encouragement of tolerance and appreciation; and (2) the discouragement of intolerance and

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discrimination. Striving to achieve manage diversity and promote inclusion will increase the likelihood that employees will not only feel welcome, but also valued by the leader, the team, and the organization.

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Wilkinson, Crowe, and Mauley 1. How should Anne demonstrate the strategic need for and the benefits of leadership development at WCM to the executive committee and the partners?

There are many ways to highlight the need for leadership development at WCM: • Explain to the partners that leadership development is widespread and a priority for most professional organizations.

• Draw on the mentoring that has been taking place in Dublin and find real-life examples of where this has been useful to make an argument for the spread of mentoring across the other locations.

• To demonstrate the benefits of introducing leadership development at WCM, recommend running a pilot leadership development program with a select number of partners and then providing an evaluation of the impact and effectiveness.

2. What leadership development methods would be most appropriate and useful, and why?

Anne can recommend an integrated leadership development approach that takes place both on the job and off-site through a variety of methods and interventions: • • •

•

Behavioral feedback can be used to assess the strengths and development needs of each partner.

If mentoring has been successful at the Dublin firm, it could be spread to other offices.

Executive coaching is likely to be well-received and effective. If the budget allows for it, Anne could recommend coaching for each partner to facilitate the learning of skills required for current and future leadership responsibilities (including leading the cultural change to a more team-based, client-focused firm).

Anne could recommend off-site leadership development experiences, including personal-growth workshops and leadership-training programs, including simulation experiences. Partners could have access to different experts speaking on leadership topics, exposure to new skills, challenges to assess their own leadership techniques, and opportunities to try out new skills and discuss lessons learned with their colleagues.

3. What factors and conditions are important for leadership development to be successful at WCM? •

Anne’s first step should be gaining buy-in and commitment from the board, executive committee, and the managing partner. She should then encourage these people to make their support public within the firm and to personally commit to fostering a learning environment.

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•

•

•

Leadership development should be tailored specifically to the firm and the partners to ensure that initiatives are relevant, appropriate, and targeted toward helping them achieving the short-term needs and the long-term objectives of the firm.

Anne is one of the few people in the firm with knowledge and experience of leadership development, and she may need the assistance of outside experts and practitioners. She would benefit from adopting a collaborative approach, which would involve working with leadership experts as well as people trained in developmental methods and providing learning experiences.

The effectiveness of the leadership development initiatives should be continually assessed and adapted where necessary in order to ensure timely, effective intervention.

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River Bank The purpose of this case is to demonstrate how a behavioral feedback and training workshop is used for developing leadership skills, and how the effects can be assessed to determine if the training intervention is effective. The case is based on an actual field experiment conducted by one of the authors (Dr. Gary Yukl) with colleagues.

1. What do the findings suggest about the importance of providing a feedback and training workshop, even though it is much easier and less costly to only provide managers with feedback reports?

The feedback report did not improve leadership effectiveness for the managers who received it. They may have not perceived it to be important, and they may not have understood the potential benefits of applying the feedback to improve their leadership effectiveness. Some consulting companies offer feedback reports as a method for management development without also providing the type of workshop used in River Bank to change and improve leadership effectiveness.

2. What other things could be done to improve the effectiveness of the feedback and training workshop?

Even when a feedback and training workshop is provided, it does not always result in changes in behavior or improved effectiveness. Research with field experiments found two ways to improve the effectiveness of the workshop. Providing coaching to individual managers in the months after the workshop was found to result in more behavior change than for managers who only had the workshop. Another way was to repeat the feedback process after several months and use a shorter workshop to review the change in behavior and help managers understand how to make greater improvement in their subsequent behavior. Setting improvement goals for specific behaviors and making plans on how to achieve them is also helpful. Incentives for improvement may also be helpful.

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Outside Exercises Description of the Exercises This part of the manual includes a description of several exercises that can be assigned as term papers or field projects. The activities allow students to use the concepts and theories in the book to describe and analyze leadership processes involving real leaders.

1. Student Journal: This activity encourages students to use theories and concepts to analyze their experiences outside the classroom, and to apply practices learned from the book.

2. Managerial Behavior Diary: This activity provides an opportunity to use the behavior concepts in a specific chapter of the book to describe a specific leader observed by the student.

3. Analysis of Leadership in Meetings: This activity provides an opportunity to learn more about effective and ineffective leadership in a decision group observed by the student.

4. Analysis of Famous Leaders: This activity provides an opportunity to use the concepts and theories in the book to describe a real leader and identify strengths and weaknesses.

5. Analysis of Leadership in Movies: This activity provides an opportunity to use the concepts and theories in the book to describe leadership behavior depicted in a movie.

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Student Journal Keeping a journal encourages students to think about applying the leadership concepts and theories in the book to their work and other outside activities. A journal is especially useful for students who have regular jobs. Journal entries should be made each week. The instructor should check the journals on a random basis several times during the semester.

The journals can be used to record a variety of different things. Some subjects can be described in a single entry, whereas other subjects may require multiple entries made over a period of several weeks. Encourage students to write rich, detailed entries rather than short, superficial comments or observations, and emphasize the importance of relating entries to the class. Assure students that their entries will be confidential and will not be seen by anybody else except you. To preserve the anonymity of people described in journal entries, students can use initials or titles (e.g., sales manager, CEO) for them. Following are some examples of possible subjects for the journal: • Describe reactions to class activities such as cases, exercises, role plays, videos, and speakers. Were they interesting, informative, helpful, etc.? Suggest ways to improve these activities.

• Describe how you used theories and concepts to improve your understanding of relationships or events in your organization. Describe your analysis and explain how the theory provided new insights or a better mental model.

• Describe your experience using specific guidelines in the book to carry out a leadership function more effectively. Some examples include the use of guidelines for influencing people, empowering people, providing coaching, and implementing a change. Explain the situation, what you did, and the outcome. Describe evidence to support your assessment that it was successful or unsuccessful.

• Describe the behavior of your boss or another leader who you can observe closely.

Use concepts from the book to analyze this leader’s behavior and effectiveness.

• Describe a specific incident when someone in the organization attempted to influence you to do something. Explain the situation, and describe in detail what the person said and did, and your reaction.

• Describe the group processes that are occurring in a team to which you belong.

Evaluate how effective this team is in accomplishing its mission, and use your analysis of group processes to explain why it is effective or ineffective.

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Managerial Behavior Diary The purpose of this project is to provide an opportunity for students to use behaviors from the book, describe an individual leader, and analyze the leader’s effectiveness.

For this exercise to be feasible, the student must be able to observe a leader on a regular basis over a considerable period of time (e.g., at least once a week for 8–10 weeks). For students with regular or part-time jobs, the easiest leader to observe is the person’s immediate boss. Another possibility is the leader of a group or organization to which the student belongs, such as the leader of a campus club or organization, the coach of a sports team, or the leader of a community group, voluntary association, or social club.

There is some choice in the behavior categories to use in observing the leader, but they should be relevant for the type of leaders to be observed. Some possibilities include the leadership behaviors in Chapter 3, the influence tactics described in Chapter 8, and the group leadership behaviors described in Chapter 10.

Develop a diary form that lists the behaviors to be observed with brief definitions and a space to record notes about actual behavior. Provide copies of the diary to students. Instruct students to record brief notes on the diary as soon as feasible after interaction with the leader. For students who have a regular job, the notes can be recorded at home for 5 minutes each evening. The period of observation should last long enough to obtain a good sample of behaviors. The less frequent the interaction, the more weeks are needed to obtain an adequate sample. However, students are not limited to current behavior. You can ask students to try to recall good examples from past incidents in which the leader used any of the behaviors and make some notes on them as well. The diaries should remain confidential and will not be seen by anyone else except the instructor, unless the student provides explicit permission. Remind students that not all of the behaviors in the diary are necessarily relevant for every leader, and some may not be used very often.

The diary and relevant theories can be used to make an analysis of the leader’s behavior. The best product from this project is a term paper in which the student analyzes the leadership situation and the extent to which the leader’s behavior is appropriate for the situation. The diary entries in each category can be coded to indicate how much or how skillfully a behavior is used (low, moderate, high). Any information about leadership effectiveness (e.g., follower satisfaction, motivation, and performance) is helpful, and if such information is available, it should be included in the report.

However, such information is not essential to do the project.

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Analysis of Leadership in Meetings The purpose of this exercise is to learn more about leadership in decision groups, which is described in Chapter 11. The student is asked to observe effective and ineffective behavior in meetings. This exercise can be used by students who frequently attend meetings in which important decisions are made, and the outcome of the decision can be evaluated fairly quickly.

The worksheet on the next page can be used to record information about the meetings. The worksheet can be used during a meeting, or if the process would be too intrusive and difficult, the worksheet can be filled out shortly after the meeting is over.

An effective behavior not included on the worksheet can be added on the back. Notes on the worksheet can be used to help in the analysis of reasons for the outcome of the meeting.

The student should select one meeting in which the group reached consensus on a decision and successfully implemented it. Then the student should select a meeting that was unsuccessful because the group was unable to agree or they made a bad decision (that could have been avoided by following better procedures and paying more attention to the available information). The effective and ineffective decision processes may involve two different meetings by the same group, or meetings by two different groups.

The student should prepare a paper that describes the purpose of the meetings, the membership of the group(s), the role and authority of the leader(s), and the outcome of the meetings. A description of effective and ineffective behavior by the designated meeting leader should be included in the analysis of reasons for the success or failure.

The analysis should also evaluate leadership behavior by other members of the group.

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Worksheet for Meeting Leadership Instructions: Make a check mark next to any effective behaviors used by the leader and make brief notes describing the behavior in more detail. Other leadership behaviors can be added on the reverse side. __ 1.

Clearly explains the purpose of the meeting and required preparations.

__ 2.

Describes the problem without implying the cause or solution.

__ 3.

Shares essential information with group members.

__ 4.

Allows ample time for idea generation without immediate evaluation.

__ 5.

Encourages and facilitates participation by all members.

__ 6.

Keeps the discussion focused on the purpose or objective.

__ 7.

Uses systematic procedures for evaluation of proposed solutions.

__ 8.

Clarifies communication and summarizes progress in a timely way.

__ 9.

Encourages an integrative “win-win” solution if there is conflict.

__ 10. Clarifies member responsibilities for implementation.

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Analysis of Famous Leaders The purpose of this project is to apply the concepts and theories in the book to the analysis of leadership by a famous or well-known leader. The project provides students an opportunity to learn more about a specific type of leader that is especially interesting to them.

Students can select any type of leader for whom there is sufficient information to provide a good analysis of leadership processes and outcomes. Examples include political leaders, military leaders, business executives, religious leaders, sports coaches, and leaders of social movements.

The student should read at least three separate sources (biographies and articles) that provide enough detail to identify specific traits and skills, behaviors, influence processes, and relevant aspects of the situation. The most useful type of source is a biographical account of the leader’s activities and accomplishments. Other relevant sources may include: an autobiographical account or memoirs written by the leader, a detailed, analytical article written by someone besides the leader, filmed biographies or documentaries about the leader, and dramatized accounts of significant events involving the leader. All sources should be clearly cited in the paper.

A minimum requirement of the paper is to identify specific behaviors and refer to relevant theories to explain why the behaviors were appropriate or inappropriate in the situation faced by the leader. Even better is to identify reasons why the leader was successful enough to become famous. Both strengths and weaknesses of each leader should be identified. Issues of ethical leadership should be considered as well. It is helpful to use quotes and detailed descriptions of selected incidents to support conclusions about the leader’s behavior and influence on followers. The source for any quotes or factual details should be clearly cited.

In addition to writing a paper, it is useful to have students should make a presentation in class. Encourage students to describe some detailed incidents involving effective or ineffective behavior by the leader to support their analysis. If movies or documentaries have been made about the leader, the presentation could include some short excerpts. Each presentation should take from 20 to 30 minutes. In a large class, this project can be done as a group project involving 2–4 students per group.

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Analysis of Leadership in a Movie The purpose of this exercise is to apply the concepts and theories in the book to the analysis of leadership by one or more of the key characters in a movie. To be feasible for this exercise, the movie must include a detailed description of leader behavior, the context for the actions, and the outcomes. It is best to have rich examples of both effective and ineffective leadership to describe. It is also better if the movie does not have stereotyped “good” and “bad” leaders, but rather involves complex figures who have both strengths and weaknesses. Docudramas based partly or entirely on actual persons and events are much more useful than movies that have no foundation in real events. This exercise can be done by individuals, but because of the time required for presentations, it is more feasible for teams of 2–4 students. Movies can be selected from an approved list, or students can select ones subject to instructor approval. Each team should make a presentation to the class in which they show incidents from the movie, explain the context for each incident (essential for members of the class who have not seen the movie), and describe why the leadership behavior was effective or ineffective. If there is time, the presentation should include at least two different incidents involving the same leaders. If the incident involves a group making a decision, leadership behavior by different members can be identified. The class should be allowed some time to discuss each incident and consider other things the leader could have done. This type of presentation requires considerable time (e.g., 30 to 45 minutes for each team), and appropriate video equipment must be available.

There are many good movies that include examples of effective or ineffective leadership. Following are some movies based on events with actual leaders. Many movies with fictional descriptions of leadership are also available. Some examples include Wall Street (1987, unethical leadership), Gung Ho (1986, cross-cultural leadership), and Dead Poets Society (1989, educational leadership). Finally, there are some excellent documentary films about leadership, such as Enron: The Smartest Guys in the Room (2005, unethical leadership).

Examples of Movies about Actual Leaders 1. Gettysburg (1993). The decisive events at Gettysburgh influenced the outcome of the Civil War. In a great example of inspirational leadership, Jeff Daniels portrays Col. Joshua Chamberlain trying to influence rebellious soldiers from Maine to fight with him in the defense of Roundtop Mountain, an early skirmish in the larger battle at Gettysburg. Other prominent actors include Martin Sheen (as Robert E. Lee,) and Tom Berenger as Lt. General Thomas Longstreet.

2. Invictus (2009). This biographical movie is directed by Clint Eastwood and starring Morgan Freeman and Matt Damon. It is about the events in South Africa after Nelson Mandela was elected president. The movie involves Mandela's use of the World Cup Rugby games hosted by South Africa to bridge the racial hostility and distrust after the ending of apartheid.

3. The Crossing (2000). This TV movie about George Washington (Jeff Daniels) describes how in 1776, after repeated defeats, Washington realized that something

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dramatic was needed to avoid losing the revolutionary war with Britain. After a difficult night crossing of the Delaware River, he led the Continental Army to a stunning victory at the battle of Trenton.

4. Thirteen Days (2000). This movie is a docudrama directed by Roger Donaldson about the Cuban Missile Crisis of 1962 when the USA and Soviet Union came very close to a full-scale nuclear war. The events provide a good example of effective decision making in a crisis situation. Actors include Bruce Greenwood as John Kennedy, Kevin Costner as special assistant to the President Kenny O'Donnell, and Stephen Culp as Robert Kennedy.

5. Gandhi (1982). A biographical movie about important events in the life of Mohandas Gandhi, a charismatic figure who led the successful non-violent resistance to British rule of India in the first part of the 20th Century. Ben Kingsley won an academy award for his portrayal of Gandhi, and other prominent actors were also in the movie, which won an academy award for best picture.

6. Miracle on Ice (2004). This movie describes the true story of how the 1980 U.S. Olympic hockey team was led by coach Herb Brooks to a surprise victory over the seemingly invincible Russian team and then went on to win the gold metal after defeating Finland. Curt Russell portrays Brooks, who uses some unconventional methods to develop the skills, confidence, and cohesiveness of the team.

7. Remember the Titans (2000). This movie was inspired by events in 1971 at a desegregated high school in Alexandria, Virginia. Denzel Washington portrays Herman Boone, the newly hired coach of the football team, and Will Patton portrays the assistant coach. Racial diversity among the team members creates conflicts, but the coaches help the team achieve racial harmony, an undefeated season, and support from the local community.

8. Lawrence of Arabia (1962). The movie is a sweeping epic about the real life adventures of T.E. Lawrence, a British major who unified Arab tribes and led them in the fight for independence from the Ottoman Empire in World War 1. It is a good movie for showing the benefits and problems for charismatic leaders. Peter O'Toole portrayed Lawrence and Alex Guinnes portrayed Prince Faisal. The movie includes several other famous actors, and it won an academy award for best picture.

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Classroom Exercises This part of the manual contains a variety of written exercises that can be used in the classroom to facilitate learning of specific concepts and models. There was not sufficient space in the manual to include exercises on every chapter or subject.

Additional exercises can be found in the many available books on experiential learning in management and organization behavior.

1. Decision Styles Exercise: This exercise provides an opportunity to practice using the simplified Normative Decision Model described in Chapter 4.

2. Influence Scenario Exercise: This exercise provides an opportunity to identify appropriate tactics for influencing subordinates, peers, and bosses in specific situations (re. Chapter 6).

3. Analysis of Visionary Speeches: This exercise helps students understand the components of a visionary speech, as described in Chapters 5 and 8.

4. Tower Exercise: This exercise allows students to experience the challenges of shared leadership in a team with a brief but complex task (re. Chapter 11).

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Decision Style Exercise Instructor Guidelines for Using the Exercise The purpose of the exercise is to give students an opportunity to practice analyzing decision situations and selecting an appropriate procedure for involving others who have relevant information or will be affected by the decision. The exercise uses a simplified version of the model (in Chapter 4) with three decision procedures instead of five, and three criteria for selecting a decision procedure. The exercise consists of six decisions incidents; students apply the guidelines to each incident to identify the best decision procedure. The analysis can be done in class or as homework prior to the class in which it will be discussed. After students do the analysis individually, there are two approaches for discussing the answers.

Option 1: Divide the class into groups of 3 to 5 people to compare and discuss their answers. This discussion takes 20 to 30 minutes. Reconvene the class to see if the groups are in agreement (most usually are) and resolve any confusion. This debriefing discussion usually takes another 15 minutes.

Option 2: Discuss the exercise in class rather than breaking up into groups. Ask one student to explain his or her analysis of an incident, and ask other students if they agree or disagree. Discuss and resolve any disagreements. Discussion of the cases in class usually lasts 20 to 30 minutes.

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Key to Analysis of Decision Cases

Incident 1 Answer: Autocratic Decision • Quality is important because a poor decision will result in materials shortages and idle workers.

• Quality is assured with an autocratic decision because the leader has the necessary information and quantitative skills to determine what materials are needed.

• Acceptance is not important because subordinates do not implement the decision and are likely to agree about the need for a high quality decision.

• The feasible set includes all three decision procedures. An autocratic decision is the least time consuming.

Incident 2 Answer: Consultation • Quality is important because the new contract will greatly affect sales.

• Quality is assured with an autocratic decision because the leader knows the plant could handle the new contract if subordinates are committed to do it.

• Acceptance is important because a high degree of effort and commitment by subordinates is necessary to meet the difficult challenge posed by the new contract.

• An autocratic decision is ruled out because it risks decision acceptance. The new contract would require subordinates to make an extra effort that they may not regard as justified. Note that this judgment assumes that the leader would not be able to persuade subordinates with a rational or inspirational appeal. If the leader believes persuasion is possible, then the decision situation is quite different.

• A group decision is ruled out because it risks decision quality. With the plant operating near to capacity, members may not share the leader's objective of increasing production even more.

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Incident 3 Answer: Group Decision • Quality is important, because overall performance of the organization suffers when there are coordination problems among departments, and the many varied ways to coordinate and schedule activities are not equally efficient.

• Decision quality is not assured for an autocratic decision. The coordination problem is very complex and requires up-to-date knowledge of the activities of each department.

This knowledge is distributed among group members and is not possessed by the committee chairperson.

• Acceptance is important because the leader depends upon committee members to implement the committee's decisions and recommendations back in their respective departments.

• Acceptance is not assured with an autocratic decision because the leader lacks the authority to tell them what to do and has no other dependable source of power to insure compliance. Even consultation is not enough when the group members expect to participate more fully in making the decisions.

• Members share the leader's objective of improving coordination among departments.

It is likely that a group consensus can be reached on how to improve coordination if the leader is skilled in conducting the meeting.

Incident 4 Answer: Autocratic Decision • Quality is not important, because the leader has the information to identify the best solutions to the problem. Any of the alternatives under consideration would have equivalent effects on the performance of the two stores.

• Acceptance is assured because it is a temporary assignment that would entail no hardship for the employee. It involves the same type of work and the other store is not far away. This type of assignment is within the leader's scope of authority and would normally be considered legitimate and reasonable by subordinates.

• In this situation it is not feasible to ask for volunteers and select one of them (consultation). There is not adequate time to survey all the qualified subordinates to determine who is interested in the assignment. However, after deciding who to call, the leader should make sure there are no unknown circumstances that would make it difficult for the person to do the assignment.

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Incident 5 Answer: Consultation • Quality is important, because the distribution of budget cuts affects department performance substantially.

• Quality is not assured with an autocratic decision, because the leader cannot determine how a budget cut will affect each department's capacity to attain its objectives. The leader needs more information.

• Acceptance is important, because the perception that a budget cut is unfair or excessive would cause resentment and lower commitment. To maintain performance at current levels despite a lower budget, more effort and initiative are needed from the department managers and their own subordinates.

• Acceptance is not assured with an autocratic decision, because any cuts imposed arbitrarily on a department would seem unjustified. Consultation provides the managers a chance to present their case and influence the decision. If group consultation is used instead, department managers have an opportunity to hear each other's case and influence each other as well as their boss.

• The leader and subordinate do not have congruent objectives. The subordinates managers are primarily concerned their own department, whereas the leader is primarily concerned about overall performance of the production facility. A group decision would risk decision quality.

Incident 6 Answer: Group Decision • Quality is not important because all of the subordinates are competent and any of the alternative schedules that conform to company policy would have the same effect on performance.

• Acceptance is important because vacation time is an emotional issue and subordinates would be very disappointed to miss a special trip or an important family event, causing resentment and dissatisfaction that may affect their performance.

• An autocratic decision is not desirable, because the leader may not have enough information about each subordinate’s preferences to identify a good schedule when there are conflicts among subordinates about desired times.

• Since quality is not at risk, the leader should let the group meet to discuss the matter and work out a schedule among themselves through problem solving and negotiation.

The leader’s role in conducting the meeting is primarily to manage any conflict and facilitate constructive problem solving. A group decision may take longer than

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consultation with individuals if there are conflicts about preferences, but it usually results in greater decision acceptance if the leader has adequate skills in managing conflicts.

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Decision Styles Exercise Instructions to Students: The purpose of this exercise is to provide an opportunity to practice analyzing a decision situation and selecting an appropriate procedure. Read each decision case carefully and use the decision rules from the Normative Decision Model to guide your analysis of the situation. The order of priority for the three criteria is as follows: (1) quality, (2) acceptance, (3) time. In other words, after applying the guidelines to eliminate any decision procedure that risks quality and acceptance, then select the fastest remaining procedure. Only the following three decision procedures should be considered.

Autocratic Decision: the leader makes the decision alone without asking subordinates (or group members) for their ideas, suggestions, or preferences.

Consultation: the leader explains the decision problem to subordinates (or group members), asks them for their ideas and suggestions, and then makes the decision after careful consideration of their inputs.

Group Decision: the leader meets with subordinates (or group members) to discuss the problem and reach a joint decision; the leader runs the meeting but has no more influence over the final decision than any other group member.

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Incident 1. You are a production manager and one of your responsibilities is to order the materials used by your subordinates in production jobs. Extensive stockpiling of materials is not feasible, and having idle workers due to lack of materials is costly.

Based on past records, you have been able to determine the materials subordinates will need a few weeks in advance with considerable accuracy. The purchase orders are executed by the Purchasing Office, not by your subordinates. How would you make material procurement decisions? ___Autocratic Decision ___Consultation ___Group Decision Notes:

Incident 2. You are the Vice-President for Production in a small manufacturing company. Your plant is working close to capacity to fill current orders. Now you have just been offered a contract to manufacture components for a new customer. If the customer is pleased with the way you handle this order, additional orders are likely and they could become one of the company's largest clients. You are confident that your production supervisors can handle the job, but it would impose a heavy burden on them in terms of rescheduling production, hiring extra workers, and working extra hours. How would you decide whether to accept the new contract? ___Autocratic Decision ___Consultation ___Group Decision Notes:

Incident 3. You have been appointed the chairperson of a committee formed to coordinate the interdependent activities of several departments in the company.

Coordination problems have interfered with the flow of work, causing bottlenecks, delays, and wasted effort. The coordination problems are complex, and solving them requires knowledge of on-going events in the different departments. Even though you are the designated chairperson, you have no formal authority over the other members, who are not your subordinates. You depend on committee members to return to their respective departments and implement the decisions made by the committee. You are glad that most members appear to be sincerely interested in improving coordination among departments. ___Autocratic Decision ___Consultation ___Group Decision Notes:

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Incident 4. You are a store manager in a large chain of retail stores. The manager of another store in town has been caught short handed, and your boss, the regional manager has asked you to loan the other store one of your employees for a few days.

You know the qualifications of your employees and there are several who could do the work in the other store. It would be the same kind of work they are doing now. The work schedule in your store could be adjusted to allow any of the employees to be away for a few days. It is now evening and the employee to be selected must be notified soon so that he or she will report to the other store tomorrow. How would you decide which person to send? ___Autocratic Decision ___Consultation ___Group Decision Notes:

Incident 5. You are the manager of a production facility with five operating departments. The department managers are your immediate subordinates. The budget expenses for your facility have just been reduced, without any reduction in workload.

Now you have to decide how much to cut each department's budget. None of the department managers wants to suffer a budget cut, and each believes that his department's activities should have the highest priority. You find it difficult to evaluate how budget cuts would affect each department's capacity to do its work. This evaluation requires more detailed information about the current operations of each department.

How would you decide where to make the budget cuts? ___Autocratic Decision ___Consultation ___Group Decision Notes:

Incident 6. You are the manager of six office workers who have identical jobs. The employees are all highly competent. It is time to set up the vacation schedule for the summer. It is company policy that only one worker can be on vacation at any given time.

Each employee gets two weeks of vacation, but the vacation days do not have to be taken together. Four of the workers have expressed a strong desire to have their vacation in June. You do not know all the details, but are aware that some of the employees have special trips or important family events in June. Your subordinates are eager to find out the vacation schedule so they can make their plans. How should this decision be made? ___Autocratic Decision ___Consultation ___Group Decision Notes:

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Influence Scenario Exercise Instructor Guidelines for Using the Exercise The purpose of this exercise is to help students to understand how to influence subordinates, peers, and bosses. The exercise is more useful when students understand the 11 proactive influence tactics described in Chapter 6 of the book. The exercise involves three scenarios that describe a hypothetical but realistic influence situation. Students analyze the scenarios and identify appropriate influence strategies.

Total time for the exercise is about 1 hour if students come to class with their scenario answers already prepared.

The first step is for students to individually describe in writing how the manager in each scenario should accomplish the stated influence objective. The answers can be written as a homework assignment, or time can be allocated in class for writing the recommended influence strategy (allow about 20 minutes).

The second step is to form groups of 4 or 5 students to discuss each scenario and try to reach agreement on the best influence strategy. Instruct each group in advance to select representatives to briefly present the group’s answer for each scenario. Allow about 30 minutes for the groups to discuss the scenarios and reach agreement.

Begin with scenario 1, and ask the representatives to present and explain their group answers. Each presentation should be brief (e.g. 2–3 minutes). Post the answers and use the 11 proactive tactics to aid in classifying the recommended tactics. In doing the posting, show the sequence of tactics recommended by each group. After all groups have presented their answers, discuss any disagreements and explore reasons for them (e.g., different assumptions or interpretation of the situation). Remind students that even though some tactics are more appropriate than others, there is often more than one good strategy available, and no strategy is guaranteed to be successful. Use the same procedure for the second scenario, and again for the third one. Allow about 30 minutes total for the presentations and discussion.

If there is time, discuss differences among the scenarios in recommended tactics, and relate to differences in feasibility of the various tactics for influencing subordinate, peers, and bosses.

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Notes on Most Relevant Tactics Scenario 1: • Collaboration would be useful to help the subordinate do the assignment (e.g., offer help on other tasks, offer to postpone or reassign some tasks).

• Rational persuasion would be useful to clarify the importance of the assignment for the organization.

• Apprising may be useful to help clarify how the assignment would further the subordinate’s career.

• Consultation may be useful to involve the subordinate in determining how the assignment could be done.

• Ingratiation may be useful to increase acceptance of the assignment (say that the subordinate is uniquely qualified to do it).

• An inspirational appeal may be useful if the assignment can be linked to values, such as concern for customer service, or loyalty to the organization.

• Exchange may be useful if it is feasible to offer an incentive (bonus, promotion) for successful performance of the assignment.

Scenario 2: • Rational persuasion would be useful to clarify why the report is needed sooner than initially expected.

• Consultation may elicit ideas about possible ways to speed up the report.

• Collaboration may be useful if there is some way to help the IS Manager do the report (e.g., provide additional resources or assistance, postpone another assignment to make time).

• An inspirational appeal may be useful if successful completion of the project can be linked to target values.

• Exchange may be useful if there is something the R&D Manager can offer that is sufficient to motivate compliance by the IS Manager.

• A personal appeal may be helpful if the R&D Manager has a close friendship with the IS Manager.

Scenario 3: • Rational persuasion would be useful to make a strong case why the proposed change is feasible, desirable, and involves low risk.

• A coalition involving other department managers would be useful to show the Production VP that there is widespread support for the change.

• Inspirational appeals may be feasible if it is possible to link the proposed change to the Production VP’s values and aspirations.

• Collaboration may be useful if there are things the Production Manager can do to make it easier for the Production VP to implement the proposed change.

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Influence Scenarios Instructions for students: This exercise consists of 3 influence situations that commonly occur in organizations. Please describe in detail what the agent in the scenario should say and do to influence the target person. If you believe that more than one type of influence tactic is appropriate, indicate how the tactics should be sequenced.

Scenario 1 The Product Manager wants to assign a new task to a specific subordinate who has the skills to do it well. The task is to conduct a study on ways to improve customer service, and it is important for the Product Manager to get this information. The subordinate is reluctant to do the task because it is only distantly related to his job, and the other job responsibilities are already overwhelming. What should the manager say to influence the subordinate to carry out the task in an effective way?

Scenario 2 The Research and Development Manager is trying to complete a project to develop a new type of diagnostic instrument for medical laboratories. This project is important, because the new instrument could be a major source of future profits for the company.

To keep the project on schedule, the R & D Manager needs the Information Services department to prepare a report earlier than initially expected. The R & D manager has no direct authority over the IS Manager. What should the R & D Manager say to influence the IS Manager to complete the report quickly?

Scenario 3 The Production Manager has an innovative idea for a change in procedures to reduce costs and increase profits, but implementation of the idea would involve a purchasing some new equipment as well as hiring and training two operators. To make the change requires the approval of the immediate boss, the Production Vice President, who is usually reluctant to make risky decisions. What should the manager say to influence the Production VP to approve the proposed change?

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Analysis of Visionary Speeches Guidelines for Using the Exercise The purpose of this exercise is to help students to understand the components of an effective vision presentation, as described in Chapters 5 and 8 of the book. The exercise involves analysis of a written or videotaped presentation made by a leader who is very skilled in visioning. Students analyze the presentation and identify effective use of content and delivery style. Total time for the exercise depends on how it is done, and the exercise can take from 30 to 60 minutes.

The first step is to select one or more speeches to use for the analysis. An advantage of using two or three speeches instead of only one is to provide a variety of different approaches to compare. The speeches can be compared with regard to content and style. Videotapes speeches are better than written ones, because it is possible to observe the nonverbal aspects of the communication.

Many types of speeches can be used, including ones by political leaders, military leaders, and leaders of social movements. Examples include the “I have a dream” speech by Martin Luther King Jr. and the speech by President Kennedy in which he proposed sending a man to the moon by the end of the decade. The speeches can be assigned, or you can allow students to find effective examples on their own.

When videotapes are used, it is best to see the actual leaders making a speech.

However, another option is to allow students to analyze speeches made by actors in movies about effective political or military leaders. An example is the inspirational speech made by Colonel Joshua Chambers to the rebellious Maine soldiers in the movie “Gettysburg.”

On the following page is a worksheet for analyzing each presentation. The worksheet has separate sections for style and content of the presentation, with subcategories linked back to the description of visioning in the book. Students should use the categories to organize their analysis of a presentation. The analysis of written speeches can be done as homework if students have a copy of the speech and the analysis worksheet. If videotaped speeches are used and it is difficult for students to gain access to them, then the analysis should be done in class.

Another option is to use groups to do this exercise. You can ask each group to select a videotaped speech, show it in class, and present their analysis. The analysis can be briefly discussed and observations made by other students and the instructor.

After all of the speeches are analyzed separately, they can be compared to each other.

This option requires more time than the option of having each student analyze the same one or two written speeches as homework to be discussed briefly in class.

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Worksheet for Visioning Analysis Style of Presentation 1. Examples of colorful, vivid language and imagery, including symbols, slogans, and metaphors.

2. Examples of appeal to shared beliefs and traditional values, familiar examples, or anecdotes to which the audience can relate.

3. Use of repetition in words, phrases, or sentence structure.

4. Use of voice (tone, inflection, pauses) and non-verbals (e.g., posture, gestures, facial expressions) to express emotion, intensity, and meaning.

5. Use of site, visual aids, visual symbols, props, lighting, music, etc. to excitement and emotionality. Use this category with a videotape.

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Content of Presentation 1. Establish the need for change (e.g., describe a current situation that is unjust, intolerable, unfair, or perilous)

2. Describe a vision of a possible future situation that appeals to people's hopes and desires for something better.

3. Present a promising, innovative strategy for attaining the vision in general terms, without too much detail.

4. Talk about the challenge of achieving the vision, the need for dedication, courage, persistence, creativity, and possibly self-sacrifice.

5. Express optimism that the vision can be attained, despite the obstacles (e.g., express confidence in the ability of the audience, recall prior successes)

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Tower Exercise Guidelines for Using the Exercise This short exercise provides an opportunity for students to experience the challenges of shared leadership in a group with a short but complex task. The exercise is most relevant to Chapter 11. Introduce the task briefly and form groups with 4–6 students. Next, explain the procedures, requirements, and rules for the task. Check to see if there are any questions. Ask each group to select a group name before they begin, and allow 5 minutes for this process. Tell the groups how much time they will have for the task (allow 30 to 40 minutes). Then, distribute a bag of materials to each group, along with one copy of the printed list of materials and the rules and requirements. When each group is ready, tell the groups to open their bag and check to ensure they have all the required materials. During construction have the can available for teams that want it to test their tower. Provide a 10 minute warning and a 2 minute warning before the end of the time period. After construction is ended, ask the groups to bring their towers to the front of the room one at a time to be tested. If desired, the test can include wind or earthquake simulation (the instructions should include any additional requirements for the test of sturdiness). All towers that pass the test should be placed on a table side by side to identify the tallest one.

Next, ask each student to fill out the group process questionnaire (next page) or ask each group to do it collectively. Even if the questionnaire is filled out by individual students, it is desirable to have each team meet for 10 minutes to conduct an afteractivity review. Ask a representative from each team to provide a brief (2 minute) summary of what was done well and what could be done better.

Below is a recommended list of materials to be provided to each group. The materials can be varied somewhat if it seems likely one class will pass on their solutions to successive ones. In addition to the construction materials, a can of food (1–2 pounds) is necessary for testing the towers after they are completed.

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List of Construction Materials • large, heavy cardboard base (square and approximately 10 inches on each side) • small, heavy cardboard platform (square and approximately 3.5 to 4 inches wide) • one half roll of masking tape (3/4 inch wide) • 12 paper cups (7 oz. or 9 oz.)

• 12 paper plates (9 inch in diameter, very thin paper with no plastic coating) • 8 popsicle sticks (or similar object made of wood or plastic)

Rules and Requirements for Tower Exercise • The objective is to build the highest tower that will pass the test for sturdiness.

• The can must rest on the small platform, and the height of the tower will be measured from the base to the top of the can.

• In the test for sturdiness, the tower must hold the can on top for 30 seconds without collapsing or tipping over (any additional requirements such as resistance to wind and earthquakes will be specified).

• The tower must be fastened to the base so that it is portable, and no part of the tower can be below the base.

• The group can use only the materials that were provided (except the tape spool or plastic bag), but it is not necessary to use all of the materials.

• The paper plates and cups can be pierced or modified into any shape, but they cannot be cut or into smaller pieces; the popsicle sticks cannot be broken.

• Each group can request the can once (for 1 minute) to test their tower.

• Before beginning each team should select a group name, write it on a piece of tape (or name card, if provided), and attach it to the base of the tower.

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Questions for Tower Exercise Student name:

Group name:

1. To what extent did your group have a clear objective, and what was it?

2. How much time did the group take to plan how to do the task before beginning to work on it?

3. How was the group organized (were there specialized roles)?

4. Did some people have more influence than others? Did a leader emerge, or were leadership functions shared by members?

5. How much disagreement was there among members, and how were disagreements resolved?

6. How motivated was the group? Explain your answer and cite evidence.

7. What things were done well by the group?

8. What things were done poorly by the group? What could be done to make the group more effective in performing a similar task?

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Role Play Exercises Description of the Exercises This part of the manual contains role exercises that can be used in the classroom to facilitate learning and make the course more interesting.

1. Save-Mart: This exercise allows students to practice guidelines for delegation presented in Chapter 4.

2. Union Chemicals: This exercise allows students to practice the meeting leadership guidelines described in Chapter 11.

3. KB Sportswear: This exercise allows students to practice the meeting leadership guidelines described in Chapter 11.

Some of the cases in the book can be used also as the basis for role playing. As noted earlier, other role play exercises can be found in several books on management skills. An example is the book by Stephen Robbins entitled: “Training in Interpersonal Skills” (published by Prentice Hall).

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Guidelines for Using Role Play Exercises in Classrooms with Movable Chairs 1. Before role plays are used in the class, take the time to explain why they are used and what students are expected to do. Make sure students know that when used properly role plays provide an opportunity to build their skills. Remind students that role plays are not a game, but rather a serious learning method that is widely used in workshops for managers.

2. Encourage students who are hesitant by saying that the roles do not require special acting skills; anyone in the class is capable of doing them. Students should try to have enough emotional involvement to make the role play seem real, but not so much that it becomes more than an experiential exercise. In other words, avoid becoming defensive or angry when playing the roles.

3. Encourage students to help each other learn from the exercises rather than being overly critical. Remind students that providing constructive feedback is a skill they need to become effective as managers, and this skill can be practiced after each role play, regardless of whether the student is a player or observer.

4. When role plays are used for skill practice, it is helpful to have students review relevant behavioral guidelines beforehand. For example, show an overhead listing the guidelines, or ask volunteers to write guidelines on the board.

5. Before the role play exercise begins, form small groups and provide a copy of the role play materials to each group. To avoid confusion, tell students in advance what they are expected to do, explain how the roles will be assigned, start all of the groups at the same time, and set clear time limits for ending the role play.

6. Tell students they should learn the key facts in their designated roles beforehand and plan in a general way what they will say. During the role plays, students should convey all information orally. It is more realistic if students do not read from their role descriptions in a mechanical manner. Students should not show their written roles to each other either before or during the role play.

7. Ask students to play their roles the way a real employee would react in that situation.

Students may add information to embellish the role but should not make up facts that change the situation in a significant way. Remind students it is okay to change one's position when it is reasonable to expect someone to do so after getting additional information.

8. Vary the composition of the groups used for role plays and case discussions during the course to ensure that students are exposed to different points of view and they have a chance to play the key leader role.

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Save-Mart Role Play Guidelines for Using the Exercise The purpose of this role play is to allow students to practice the guidelines in Chapter 5 for delegating effectively. For this role play, it is necessary to form threeperson groups and determine for each group who will play the role of the boss, who will play the role of the subordinate, and who will serve as the observer. Any students who are left over may be used as extra observers.

After roles are assigned, give students copies of the materials relevant for their part in the role play exercise. All students should be given a copy of the general instructions and background information. Students selected to be managers should get a copy of their respective roles. Students selected to be observers should get a copy of the instructions for observers, the boss role, and the form for taking notes on the meeting.

These notes will be the basis for feedback to the student playing the role of boss.

Before beginning the role play, allow time for students to read their materials and plan what to say. Remind students not to look at the role or materials for any other person, either before or during the role play. Information should be communicated only orally during the role play, and students should not show their printed role sheets to each other.

When the role playing is finished, reconvene the larger class to discuss what was learned. Ask observers for examples of especially effective behavior they witnessed.

Identify the major difficulties faced by the managers in delegating to subordinates.

The total time for this exercise is about 50 minutes. It takes 5 minutes to explain the exercise and form triads. It takes about 10 minutes for students to read their materials and prepare for the role play. It takes about 15 minutes to do the actual role play, and another 5 minutes for feedback from the observer. The class discussion takes another 15 minutes.

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Save-Mart Role Play Exercise Instructions for Students The purpose of this role play is to provide an opportunity to practice guidelines for delegating effectively. This role play involves a meeting between the Vice President for Operations and one of the store managers who report to the VP. If you are selected to play the role of one of these managers, you will be provided with a description of your role. Before the role play begins, read the background information (see below) and study the description of your role. Try to imagine how the person would actually feel in that situation, and act accordingly during the role play.

One or more observers will be assigned to each group. Students selected to be observers should read their instructions and the observer form for taking notes on the meeting. These notes will be the basis for giving feedback to the student who plays the role of the boss. Your instructor will provide additional information on procedures and time limits for the role play.

Background Information Save-Mart is a retail discount chain with 20 stores in five states. The company was founded ten years ago and has been expanding rapidly. The stores are all identical in appearance and layout, and most of the stores are located in suburban areas.

Merchandise is selected and purchased in large quantities by the headquarters buyers and stockpiled in the company's two warehouses. Each store receives an initial shipment of each item, then orders replacements as needed. All prices are set by headquarters marketing staff, and they also do the planning for all promotions and sales. Thus, all stores have the same prices and promotions going on simultaneously.

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Role for Vice President of Operations at Save-Mart You are the Vice President of Operations for Save-Mart. Top management has recently decided to experiment with decentralization of some important operating decisions. They feel that this change will improve sales and profits and reduce bureaucratic problems such as promotions that some stores do not need or are not prepared to handle. A few stores have been selected to participate in this trial because they have managers who appear to have the personality and ability required for an expanded managerial role. If after one year the changes appear successful, they will be instituted in all the Save-Mart stores. At that time, a program of bonuses based on store profits will be instituted for store managers.

You are about to meet with one of your subordinates, who is the manager of store number 17. The purpose of the meeting is to explain how more authority for decisions will be delegated to him or her. The following changes will be made: 1. The manager of store #17 will be given responsibility for pricing decisions and will be able to adjust prices upward or downward on all items in his/her store. Prices can be increased by up to 25% above the list price recommended by the headquarters Merchandise Department, and they can be reduced down to the base cost of an item.

2. Store #17 will still receive shipments of standard items, but the manager will be given authority to spend up to 20% of his/her merchandise replacement budget on items purchased from other suppliers rather than from the list of items available from SaveMart warehouses. This flexibility will allow the store to sell items that have special appeal in its local area. Monthly sales reports on special items must be submitted to the Merchandise Vice President.

3. The manager of Store #17 will be able to conduct promotions campaigns and special sales in addition to the ones initiated by headquarters. A promotions budget will be provided to pay for the cost of local advertising in newspapers and on radio and television. The size of this budget will be determined next week. Headquarters should be informed in advance of local promotions and sales, to allow coordination with storewide promotions.

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Role for Manager of Save-Mart Store #17 You are about to meet with your boss, the Vice President of Store Operations. You have heard through the grapevine that some major changes are in the works to decentralize operating decisions to the level of the store managers. You are very excited about this change, because you believe that your store could increase sales and profits if you had more discretion about store operations. You have been hampered in competing with other stores in the same area by lack of control over prices and choice of items to sell. You do not have much expertise about advertising campaigns and would need some instruction and advice from the experts at headquarters to help you learn how to plan promotions campaigns. You are hoping that greater responsibility for profits will also mean greater opportunity to earn bonuses based on store profits. You enjoy working for Save-Mart, but you have an opportunity to take a job in another company with more responsibility and higher pay. You want to find out whether SaveMart is going to provide the opportunity to earn what you think you are worth.

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Instructions for Observers Your job is to observe the role play and take notes on how well the student playing the role of the boss follows the guidelines for effective delegation that are listed on the observer form. Indicate whether the "boss" does each step and note examples of effective and ineffective behavior. In preparation for the role play, read the background information and a copy of the role for the boss, so you can understand what information the boss should communicate to the subordinate.

Observer Form 1. Specifies responsibilities and authority clearly.

Notes:

__ Yes __ No

2. Checks for comprehension.

Notes

__ Yes __ No

3. Specifies reporting requirements.

Notes:

__ Yes __ No

4. Ensures subordinate acceptance of responsibilities.

Notes:

__ Yes __ No

5. Offers support, assistance, and resources.

Notes:

__ Yes __ No

6. Other observations.

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Union Chemicals Role Play Guidelines for Using the Exercise The purpose of this role play is to allow students to practice the guidelines for leading decision groups (described in Chapter 11). The exercise gives students an opportunity to experience the difficulties in making a group decision when there are many uncertainties and strong pressure to reach a quick consensus. The role play involves a meeting of the CEO with five executives. Even when the group is not highly cohesive, the role play creates conditions that discourage adequate assessment of the preferred solution.

After introducing the role play exercise, form six-person groups (composed of five managers and an observer) and identify a leader for each group by asking for volunteers or appointing somebody. Then assign the other four roles and select an observer. Any extra students left over after the groups are formed can serve as additional observers. Give each student a copy of the general instructions (including background information). Give students selected to be managers the descriptions of their roles. Remind students not to look at the materials for any other person, either before or during the role play. Give observers copies of the observer instructions, the observer key, and the observer form. Remind observers not to talk during the role play itself.

After the groups are formed, allow students time to study their roles and prepare for them. Remind students that they can interpret and embellish their roles as long as they do not introduce any factual information that changes the nature of the decision problem. Also, during the course of the discussion, they can change their position if it would be realistic to expect that they would do so in a real job situation. When students are ready, tell them that they have 30 minutes to make their decision, and start all of the groups at the same time.

After the groups have reached their decisions, reconvene the class to discuss the role play. Ask each observer to report the group decision and briefly evaluate how rational and systematic it was.

Total time for the exercise is a little more than an hour. It takes 5 minutes to form the groups, assign roles, and distribute materials; 5 minutes for students to study their written materials and prepare for the role play; 25 minutes for the role play, 10 minutes for feedback from observers, and 15 minutes for class discussion to debrief the exercise.

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Union Chemicals Instructions for Students The purpose of this role play is to provide an opportunity for you to experience what it is like to participate in a group that must make an important managerial decision. The role play also provides an opportunity to practice and strengthen skills that determine whether a decision group will be productive.

The role play involves a meeting of the five-member executive team. Students will formed into groups, and each member of a group will be assigned a different role. If you are selected to be a manager, you will be given a description of your role. Before the role play begins, read the background information (below) and study the description of your role. Try to imagine how the person would actually feel in that situation and act accordingly during the role play. You may refer to your printed materials during the role play, if necessary, but do not show them to other people in the group. Please do not look at the materials for any role other than the one you are assigned.

One or more observers will be assigned also to record the decision processes of each group. Observers should not talk to group members during the role play. An observer form will be provided to take notes that can be used to provide feedback to the group after the role play is completed. Your instructor will give you more information about procedures and time limits for this exercise.

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Union Chemicals Role for Company President

Union Chemicals is a large manufacturing company that makes chemicals, solvents, and various kinds of compounds. The company is financially sound, but sales have leveled off in the last few years and competition is increasing. The Product Research Department has developed a new bonding agent, and the executive group is meeting now to decide whether to begin marketing and production of the new product. The executive team includes the President and the four vice presidents (research, production, marketing, finance).

You have been President of Union Chemicals for three years. Under your leadership the company has been turned around from a condition of falling profits to one of modest but stable profits. You have aggressively encouraged expansion of research and development so that the company can remain competitive in an era of rapid technological change. Future growth for the company is dependent on sales of new or improved products, since demand for existing products is not increasing much and there is considerable foreign competition.

You have called the meeting for today to evaluate the prospects for a new bonding agent developed by Union’s research scientists. The company holds patents on the basic process used to make the bonding agent. The specialized equipment needed to produce the new compound is available for purchase. The testing device necessary for quality control is made only by Eureka Corporation, one of your competitors, but you do not anticipate any problem in leasing their test device. You hope that the executive team will be able to reach a decision on the best course of action to follow.

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Union Chemicals Role for VP-Research Union Chemicals is a large manufacturing company that makes chemicals, solvents, and various kinds of compounds. The company is financially sound, but sales have leveled off in the last few years and competition is increasing. The Product Research Department has developed a new bonding agent, and the executive group is meeting now to decide whether to begin marketing and production of the new product. The executive team includes the President and the four vice presidents (research, production, marketing, finance).

You have been Vice President of the Research and Development Department at Union Chemicals for ten years. Until the last few years the Research department was hampered by inadequate budgets. The company did not invest enough of its profits in development of new products, and this was a major reason for loss of sales to domestic and foreign competitors. However, of the several research projects currently underway, the new bonding agent is farthest along toward final development. Product testing research has been going on for several months, and the results show that the new bonding agent is superior to any existing product on the market. In fact, the bonding agent is so strong and versatile it can be used to bond materials that formerly had to be welded or fastened together mechanically. Nevertheless, just this week one of your junior scientists ran some tests that indicated the new compound may break down after a period of time when subjected to very high or low temperatures, especially if the compound contains any impurities not detected and removed during production. More research is underway to determine the exact conditions under which problems may occur. You are hopeful about the prospects, because a successful new product would help your department get the larger research budgets you believe are necessary for the company to remain competitive in coming years.

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Union Chemicals Role for VP-Production Union Chemicals is a large manufacturing company that makes chemicals, solvents, and various kinds of compounds. The company is financially sound, but sales have leveled off in the last few years and competition is increasing. The Product Research Department has developed a new bonding agent, and the executive group is meeting now to decide whether to begin marketing and production of the new product. The executive team includes the President and the four vice presidents (research, production, marketing, finance).

You have been VP of the Production Department for six years, during which time you have been very effective in minimizing production costs in order to keep the company competitive. The bonding agent developed by the Research Department is the first new product to come along in several years. In your opinion, going ahead with production would create some technical problems, but nothing insurmountable.

Production of the bonding agent would require purchase of some new equipment which could not be used for existing products. It would take 6 to 8 weeks to install the production equipment after it arrives. A special quality control device to test for impurities could be leased from Eureka Corporation. Some new production employees would need to be hired, and anyone involved in making the new bonding agent would have to be trained to safely handle the extremely hazardous chemicals involved in the production process, in order to avoid accidents or an explosion. You enjoy the challenge of bringing a new product into regular production, and you are looking forward to getting started with the planning as soon as possible.

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Union Chemicals Role for VP-Marketing Union Chemicals is a large manufacturing company that makes chemicals, solvents, and various kinds of compounds. The company is financially sound, but sales have leveled off in the last few years and competition is increasing. The Product Research Department has developed a new bonding agent, and the executive group is meeting now to decide whether to begin marketing and production of the new product. The executive team includes the President and the four vice presidents (research, production, marketing, finance).

You have been VP for Marketing for two years, having been promoted to the position when your predecessor left for another job. You have been anxious to show what you can do to improve sales, but you have been frustrated by unfavorable market conditions and the lack of exciting new products. Now it looks like the company has finally come up with a winner. The new bonding agent could be sold to a variety of different industries, including home appliances, automobiles, building construction, aircraft construction, and military weapons systems. Your staff has projected a rapid sales growth for the new product, and it could become one of Union Chemical's most important products within a few years. You have just learned from reliable sources that Eureka Corporation, one of your competitors, is working on a similar product based on a different compound. You are concerned that any delay would mean losing the advantage of being first on the market with a new kind of product. You would like to begin planning a major marketing campaign for the new product as soon as possible.

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Union Chemicals Role for VP-Finance Union Chemicals is a large manufacturing company that makes chemicals, solvents, and various kinds of compounds. The company is financially sound, but sales have leveled off in the last few years and competition is increasing. The Product Research Department has developed a new bonding agent, and the executive group is meeting now to decide whether to begin marketing and production of the new product. The executive team includes the President and the four vice presidents (research, production, marketing, finance).

You have been the VP for finance at Union Chemicals for five years and have worked for the company for nearly twenty years. Union badly needs a successful new product. Sales have leveled off in recent years, and competition keeps getting more intense. Just before this meeting, your staff gave you the financial projections for the current year, and profits are expected to decline by 10 percent. If the new bonding agent could be put on the market quickly, profits could be up again by the end of next year. You have already investigated the cost of purchasing new equipment to produce the bonding agent. The specialized production equipment would be very expensive, and the company would have to increase its long-term debt in order to finance the purchase.

However, you are convinced that it would be an excellent investment. Production costs for the new product would be slightly higher than for other compounds currently made by the company, but because it is a unique product with no competitors, it could be sold at a premium price, yielding large profits. You strongly favor going ahead with marketing and production of the new product.

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Union Chemicals Background Information Union Chemicals is a large manufacturing company that makes chemicals, solvents, and various kinds of compounds. The company is financially sound, but sales have leveled off in the last few years and competition is increasing. The Product Research Department has developed a new bonding agent, and the executive group is meeting now to decide whether to begin marketing and production of the new product. The executive team includes the President and the four vice presidents (research, production, marketing, finance).

Instructions for Observers Your assignment in this role play is to observe the group process and evaluate how effective it is. Before the role play begins, read the background information and the observer key. During the role play, pay particular attention to how well the group leader conducts the meeting. Use the Observer Form to take notes on effective and ineffective behavior by the group leader and other members. Use these notes to provide feedback to the leader and the group after the role play is completed.

Effective leaders encourage careful evaluation of the potential benefits and costs of selling the new product. Various members of the group have information about some serious risks associated with putting the new compound into immediate production. The potential risks should be identified and weighed carefully against the potential benefits to determine if the company should market the new product on a large scale, market it for limited (safe) applications only, or wait until further testing before going ahead with production and marketing. The leader should make sure dissenters have ample opportunity to be heard, and should encourage careful consideration of all potential problems. It is helpful for the leader to list pros and cons on a flip chart, blackboard, or summary sheet for group members to see.

A careful and systematic evaluation of pros and cons usually results in a cautious decision, such as continuing product testing to identify safe applications, or marketing the product only for limited use in low risk situations, perhaps with special clients who will experiment with it and help to evaluate its applications and limitations. Groups that do not use an effective decision process usually make a quick decision to proceed immediately with full scale production and unlimited marketing. Sometimes a cohesive group will exhibit the symptoms of groupthink; negative information is suppressed, ignored, or discounted, and anybody who expresses a dissenting opinion is pressured to go along with the majority position.

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Observer Key Summary of Potential Benefits: • Sales prospects are excellent due to many product applications and the uniqueness of the product.

• Profits would be large due to a high price and moderate costs.

• Production could be initiated in a relatively short period of time.

• The company needs a new product to boost sales and profits, which are beginning to lag.

• The new product would create enthusiasm and boost morale.

Summary of Potential Risks: • Cost of equipment is expensive and long-term debt would be increased.

• The equipment could not be used for other purposes if production were delayed or interrupted.

• Some applications may not be feasible because the bonding agent will break down under very high or very low temperatures, subjecting the company to adverse publicity and expensive lawsuits.

• The new product requires handling of hazardous materials which could result in accidents or explosions, especially if production is rushed and employees are not properly trained.

• The competitor (Eureka Corporation) that is developing a similar product may split the market, making the compound less profitable than initially assumed.

• Because Eureka's is a likely competitor, they may refuse to allow Union Chemicals to license the test equipment necessary for quality control, thereby forcing delays in production until an alternative quality control process is developed. Even if Eureka is willing to lease the equipment, the cost may be so high that it will cut into profits from the new compound.

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Observer Form

1. What did the company president do to facilitate the decision process?

2. What actions by the president (if any) hindered the group?

3. What effective or ineffective behaviors did other members exhibit?

4. Identify and evaluate the processes used to reach a decision.

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KB Sportswear Role Play Guidelines for Using the Exercise The purpose of this role play is to allow students to practice the guidelines for leading decision groups described in Chapter 11. The exercise gives students an opportunity to experience the difficulties in making a group decision when there are many uncertainties and underlying conflicts between subordinates. The role play involves a meeting of the company president with two functional vice presidents. The person playing the role of company president has an opportunity to practice skills required for conducting meetings and resolving conflicts.

For this role play exercise, it is necessary to form groups of four students and determine who will play each role or serve as the observer. Extra students may be assigned as additional observers. After responsibilities are assigned, give students copies of the materials relevant for their part in the role play exercise. Each student should be given a copy of the general instructions and background information. In addition, students selected to be executives should get a copy of their respective roles.

Students selected to be observers should get a copy of the instructions for observers, the observer sheet, and the key on ways to reduce causes of the conflict.

Before beginning the role play, students should read the instructions and background information and study their roles. Students selected to be observers should study the special instructions for observers and the form for taking notes on the meeting. These notes will be the basis for providing feedback to the group. Remind students not to look at the materials for any other person, either before or during the role play. During the role play, information should be communicated orally, and students should not show their printed role sheets to each other.

After the role play, reconvene the class to discuss it. Ask the observers to report on examples of especially effective behavior by students who played the role of the KB president.

The total time for the exercise is about an hour. It takes about 5 minutes to introduce the exercise, form groups, and distribute copies of the materials. Students need 5 minutes to read their materials and prepare for the role play. Allow about 20 minutes for the role play itself, and another 10 minutes for feedback from the observer.

The class discussion to debrief the exercise takes about 15 minutes.

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Instructions for Students: The role play involves three parties: the president of KB Sportswear, the Vice President for Sales, and the Vice President for Production. If you are selected to play the role of one of these executives, read the background information and study your role. Try to imagine how the person would actually feel, then act accordingly during the role play.

Background Information: KB Sportswear is a small company that manufactures clothing used in sports and recreational activities, including ski apparel, jogging outfits, swim wear, tennis outfits, and clothing for hunting and fishing. The company's sportswear is manufactured at two small plants just across the border in Mexico. KB sells its sportswear to a variety of department stores, sporting goods stores, and clothing stores, including small, individually owned stores as well as large chain stores.

The sportswear markets serviced by the company are increasingly dominated by fads and fashion trends. Items such as ski jackets and jogging outfits are often purchased for general use, not just for use in a sports activity. In any given year, some styles and patterns for a particular type of sportswear are likely to be more popular than others. The stores typically order only a limited quantity of various items, then place follow-up orders for particular styles that are selling well. Since most sportswear is seasonal and fashions change each year, it is important for stores to receive quick delivery on reorders or they will lose profitable sales and be stuck with items that can only be sold at low prices during post-season sales. In the last two years the average delivery time for reorders increased from 3 weeks to 6 weeks.

The company has a sales force of twenty sales representatives, each with a different territory. The sales representatives work on a commission basis. Since one basis for making sales is the promise of quick delivery, there is intense pressure from the sales representatives to get a reorder filled quickly. Orders made by the stores are placed with the sales representatives or sent by mail directly to the headquarters sales office in Los Angeles. Reorders are usually called in to the sales office by the sales reps or the retail stores. A credit check is made by the sales office before an order is sent to the headquarters production office, and a retailer with weak credit may be required to pay in advance for an order. By the time most reorders come in, the plants are usually in the middle of production runs for the next season. If this production is disrupted, the line of sportswear for the next season may not be ready on time.

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KB Sportswear

Role for President

You have been the President of KB Sportswear for the last five years. The company has been growing steadily in sales, and its lines of sportswear are now being sold in most parts of the United States. However, the problem of delivery delays on reorders threatens to cut into sales, and may have done so already. You believe that the company has enough plant capacity to produce all of the sportswear that it can sell this year if the production scheduling problems can be worked out.

There are several constraints on solving the problem. The company cannot afford to maintain large inventories of items if it is going to be stuck with many unpopular lines that do not sell. KB cannot afford to build or buy another plant at the present time, although in another year or two it may be feasible. If absolutely necessary it is possible to subcontract some work to other companies. However, subcontracting production would increase costs, which are now at minimum levels, and would not necessarily guarantee any faster delivery of reorders.

You have called a meeting with the sales and production vice presidents to discuss these issues and decide how to reduce delays in delivery of reorders.

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Role for VP-Sales at KB Sportswear You are glad that this meeting is being held so that you can express your growing frustration with the production people. Don't they understand that without sales there wouldn't be any company? Nearly half of KB's sales are accounted for by reorders. You are proud of your record in increasing sales over the last two years, but the same kind of increase will not be possible in the next two years if there are long delays in deliveries of reorders. Even now, some potential sales are being lost to other companies who guarantee faster delivery. Once a company gets a bad reputation about late deliveries, it becomes difficult to obtain any business from the large stores that are your most important customers.

Several of the sales reps have complained to you that the production people are uncooperative. When the sales reps try to find out about an order, they usually can't get a definite answer. How can they make sales if it is impossible to tell a retailer how long it will take to get a reorder? You heard through the grapevine that one of your sales reps stopped in at the plant last week to check on a special order and was told never to come back.

You believe that production is entirely at fault for the problem of slow deliveries on reorders. All they seem to care about is saving a few dollars on production costs. The production scheduling doesn't seem to make any sense. Sometimes a sales rep has to wait six weeks for a reorder, and other times the same type of order is filled in two weeks. Why can't production fill all of the reorders in two or three weeks? You wonder why things are so screwed up in production. Are the managers in those Mexican plants are taking too many siestas?

In addition, your sales reps complain that production doesn't seem to have any sense of priorities. A reorder for a small store is sometimes filled before a reorder for a major department store chain. If production cannot do all of the reorders quickly, then they should expedite reorders for the major customers and let the less important customers wait longer.

You believe that the production mess can be straightened out with better management. If it is not possible to speed up deliveries with the present facilities, then the company should build another plant or subcontract the reorders to other companies.

Most of KB's lines could be made anywhere in the world, such as in Korea or China.

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Role for VP-Manufacturing at KB Sportswear You have been looking forward to this meeting, because it is about time something was done about the sales representatives. All they seem to care about is making fat commissions. They make unrealistic promises of fast delivery to stores, then they expect miracles from production to bail them out. They have become especially obnoxious lately in pestering the plant managers or anybody else they can talk to about reorders. Production people are constantly getting telephone calls from one sales rep or another checking on reorders. Some sales reps attempt to influence a plant manager to give them favorable treatment. You heard that last week one sales rep even came to the plant and offered a bribe for doing his order first. The manager threw him out and told him never to show his face in that plant again!

You are proud that production of sportswear by KB has been increased substantially, while keeping unit costs below the industry average. It is this success that allows the company to remain competitive in its pricing of sportswear. However, you cannot keep production costs down if you have to keep interrupting the high-volume work on next season's lines to make a small batches of reorder items. Why don't the sales reps understand that you can't shut down regular production every time they have some little ski shop in Vermont that wants a dozen ski jackets? If the sales people could tell you sooner which items are selling well, rather than waiting for actual reorders, you could build up larger inventories of the "hot" items.

You are aware that the delivery time on reorders has gotten worse, but it is not your fault. As sales have increased in the last two years, the two plants have come close to full capacity, making the scheduling of production for reorders even more difficult than before. Your plant managers usually delay production on reorders until there is enough volume of a particular type of item to make it economical to interrupt the regular production. Only very large reorders that don't have to be combined with other orders get processed quickly.

Delays in delivery of reorders are due also to the tougher requirements for credit checks instituted last year by the headquarters sales office. Before you can fill a reorder you must wait for a credit check on the retailer to be completed, even for major department stores worth many times more than KB Sportswear. Relaxing these requirements would help speed up deliveries on some of the reorders.

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KB Sportswear Observer Your assignment is to observe and evaluate the group process. Before the role play begins, read the background information and the observer key. During the role play, pay particular attention to how well the group leader conducts the meeting. Use the Observer Form to take notes on effective and ineffective behavior by the group leader and other members. Use these notes to provide feedback to the leader and the group after the role play is completed.

Observer Key What the Sales VP Can Do: • Prohibit sales reps from calling anyone in production except a designated production scheduling person to find out about delivery dates.

• Instruct sales reps not to promise deliveries that are unrealistic.

• The Sales VP can work with the sales reps to develop a better information system to detect sales trends early and report this information to production scheduling.

• Revise the credit check system. Maintain timely records for important, regular customers so that reorders from these stores can be processed quickly.

• Conduct a study to estimate future sales and the implications of delivery time for lost sales and canceled orders.

What the Production VP Can Do: • Reorganize the production scheduling office to handle all orders, reorders, and inquiries from sales reps more efficiently.

• When information about sales trends is provided by the Sales VP, plan larger runs of popular items to build up inventories of these items.

• Establish a priority system to give favorable treatment to regular customers who place large orders. The Sales VP would identify them before each season.

• Explore the possibility that production scheduling would be facilitated and production costs reduced if all of the reorders were produced at one plant.

• Evaluate options for the future such as new or expanded plants, or outsourcing the production of some standard items in order to increase capacity for filling reorders quickly.

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Observer Form

1. What did the company president do to facilitate the decision process?

2. What actions by the president (if any) hindered the group?

3. What effective or ineffective behaviors did other members exhibit?

4. Identify and evaluate the processes used to reach a decision.

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