Adding value at H & H Financial Services, LLC.(Instructor's Note)
Marunninal, Deepthy ; Dinur, Adva ; Sherman, Herbert 等
CASE DESCRIPTION
The case is a field-based, disguised case which describes the birth and continued growth of H & H Financial Services, LLC and how that growth has impacted work processes and procedures. The data for this case was gathered through personal experience of the primary author and interviews of co-workers. The case was written primarily for an undergraduate class in organizational behavior although it has applications to courses in small business, human resources, and strategic management.
The case follows a new hire, Debbie Matthews, as she faces the challenge of dealing with what appears to be a dead end job in that she has little opportunity for job enlargement and enrichment. After 11 months of working at H & H Financial and do the same old job with little to no challenge and growth potential, she wonders if it is worth it for her to stay with the company. Complicating factors in her decision include being a single mother, attending graduate school, and a very tough economic job market.
CASE SYNOPSIS
The case begins with a description of Christopher Blake's birth and growth of H & H Financial Services LLC. Mr. Blake, finding that a large corporate financial services firm was more interested in selling product than helping its clients, founded a part-time financial services firm which put people's needs above sales goals. With the growth of his little start-up venture, Mr. Blake left corporate to work full time in his burgeoning business and ended up hiring Jane Sutton (a former office manager in his corporate office) and two recent college graduates. The firm grew, moved into new office space, and was then reorganized by the now "office manager" Ms. Sutton who created two departments; supplier and customer relations. Each college graduate became supervisor of the department as Mr. Blake also expanded his side of the operation by hiring two new agents who he was personally responsible for training and managing.
The firm continued to grow and moved once again while retaining its "departmentalization by function" organizational structure. Mr. Blake continued to manage the "front office" (client contact) side of the business while Jane managed all of the back office customer and supplier services through her supervisors. Although each supervisor ran a "fun" department Ms. Sutton ran a much more formal operation where "playing" was kept to a minimum.
The case is written from the perspective of the character Debbie Matthews, a recent college graduate who was hired by H & H Financial right out of college. A single mother in graduate school, Ms. Matthews is at first highly elated about the job given her desire to learn everything that she can. Reality sets in though when after two months she finds that all of her questions about how things work in her office are answered by Ms. Sutton in basically the same way; you do not need to know.
At the end of the case Ms. Matthews is wondering whether she should stay with the firm given her flexible schedule and her need to take care of her daughter or whether she should quit and find a job that she can grow with and continue to learn.
INSTRUCTORS' NOTES
Intended Instructional Audience & Placement in Course Instruction
The case was written primarily for an undergraduate class in an organizational behavior since it is written from a new employee's perspective; a student straight out of college looking for but not getting on-the-job "learning" experiences in what is perceived as a closed, incommunicative environment. The case is fairly comprehensive in nature in that it includes several micro and macro organizational issues (leadership style, work motivation, and job design at the micro level as well as organizational structure, culture, and growth at the macro level) that impact individual and organizational performance.
Secondarily, this case could also be utilized in a small business management class since the case talks about the managerial problems a small business experiences as it evolves from a "ma and pa" part-time business through small group operation into a multiple group (departments) organization. Further, since the case clearly addresses issues of employee development and career planning, an instructor teaching human resource management may find the case useful when discussing issues of employee burnout and personnel development.
For students in an undergraduate organizational behavior class, the case should be introduced towards the later part of the semester, preferably at the end of the course, so that students already have the necessary educational background in which to address both micro and macro organization behavior issues. [For example, in Schermerhorn, Hunt and Osborn (2008) students would have needed to have read chapters 5, 6, 11, 12, 16, 17; in Robbins and Judge (2009) chapters 6, 7, 12, 13, 16-18; and in George and Jones (2008) chapters 6-8, 12, 16, 17.]
We suggest that this case serve as an end-of-semester integrative outcomes assessment case (given its length, possibly as a take-home assignment or final examination) which would:
1. Allow students to internalize the course material by experiencing through the protagonist, a recent graduate, how organizational theory does have application to business practices.
2. Allow students to see the interdisciplinary and integrative nature of business problems (even individual problems) when viewed through an organizational behavior perspective.
In an entrepreneurship or small business management class, the case could be introduced as an end of chapter case on managing growth if viewed from the owner's perspective (Roberts et. al, 2007, chapter 11; Lambing and Kuehl, 2007, chapter 10). We suggest that in this course students might address personnel, leadership, cultural and structural issues that both support and hinder the success of this firm as it continues to expand. What changes can Mr. Blake make in the firm's operation in order to empower workers like Ms. Matthews and take advantage of her drive and desire to learn and progress? What changes does he need to make in his own approach to leadership?
In terms of specific human resource management issues, Ms. Matthews, as the focus of the case, is represented as an employee experiencing burnout who desperately wants to work for a "learning organization." (Senge, 1990) As an end of chapter case on job burnout and career planning (Ivanevich, 2010, chapter 14; Bernardin, 2010, chapter 9), the challenge from an HRM perspective is how to counsel Ms. Matthews given the current organizational structure and culture and then how to specifically address her job and career path within and/or outside of the firm. Students need to question whether Ms. Matthews can grow with the firm as the firm increases its operation and determine whether Ms. Matthews fits the firm's managerial culture and work environment.
Learning Objectives (Organizational Behavior Course)
The overall purpose of this case is to have students examine the growth of a small business (family firm) from two differing perspectives:
1. The more obvious micro perspective - what should Ms. Matthews do given her deflating motivation and inability to grow on the job?
2. The less obvious macro perspective - as a consultant to the small business owner, Mr. Blake, how is Ms. Matthews' situation symbolic of the growing pains experienced by the firm and the need for Mr. Blake to change his leadership style so as to then establish a more learning and communicative work environment?
This case is of particular value to undergraduate students since many of them may be working for a small, family firms and encounter similar work, developmental and career path barriers. Students are asked to probe beyond personalities and the immediacy of the moment and examine the underlying nuances of the posed problem. Specific student learning objectives include:
1. Applying content theory and process theory to describe Ms. Matthews' work motivation.
2. Demonstrating an understanding of the impact of job design and style of supervision (leadership) on Ms. Matthews' work motivation
3. Developing alternative solutions for Ms. Matthews relative to her ability to remain with H & H based upon the three general options of "exit, voice, and loyalty." (Hirschman, 1970)
4. Analyzing the impact of Mr. Blake's leadership style on organizational culture and structure.
5. Examining the impact of growth on H &H using Greiner's (1972) model of organizational evolution and revolution.
6. Proposing solution strategies for the firm addressing any problems identified in learning objectives 4 and 5.
SUGGESTED QUESTIONS AND ANSWERS
(Teaching strategies for this case are addressed in Teaching Note Appendix A.)
The following questions may be employed by the instructor either as guidelines for case analysis and/or as questions to be distributed to the class in conjunction with the case. This methodology provides the instructor some latitude in terms of how much direction he or she wishes to provide the student and therein allows the instructor to modify the difficulty of the case to fit his or her class's needs. The questions are divided by topic and correspond to the prior learning objectives.
Questions:
1. Using one content theory and one process theory of work motivation, describe Ms. Matthews' work motivation.
2. Discuss what might be the impact of job design and style of supervision (leadership) on Ms. Matthews' work motivation.
3. Using the options "exit, voice, and loyalty" (Hirschman, 1970), develop three alternative solutions for Ms. Matthews relative to her ability to remain with H & H.
4. What is the impact of Mr. Blake's leadership style on H & H's organizational culture and structure?
5. Describe how the growth of H & H (using Greiner's 1972 model of organizational growth) has been both evolutionary and revolutionary.
6. Propose solution strategies for the firm addressing any problems identified in questions 4 and 5.
1. Using One Content Theory and One Process Theory of Work Motivation, Describe Ms. Matthews' Work Motivation.
The purpose of this question is to check students' understanding of what content and process theories of motivation are as well as to understand and then apply one theory from each category to describe Ms. Matthews' work motivation.
The student should first define what motivation is. Motivation is goal directed, requires sustained effort, and is a need-satisfying process. Motivated employees exert effort to relieve tension (unsatisfied need); the greater the tension, the greater the effort. If this effort leads to the satisfaction of the need, it reduces tension. Individual needs must be compatible with the organization's goals so that employee effort levels and performance benefit the organization. (George and Jones, 2008) For instance, if an employee is primarily motivated by the fulfillment of social needs, then although great effort is exerted to socialize, the firm's goals are not attained.
The student should then explain in his/her answer what are the differences between process theories of motivation and content theories of motivation. A content theory of motivation describes the facts of 'what' drives the person to exert an effort. These theories are considered need theories as they view motivation as a drive to satisfy a need. (Schermerhorn, Hunt and Osborn, 2008) On the other hand, process theories attempt to understand how and why people are motivated; the focus being on the behavior rather than the needs of the individual. (Lussier, 2008) A short description of several content and process theories not directly addressed in the TN is in TN Appendix C.
Content Theory: Maslow's Hierarchy of Needs
A popular theory of motivation was developed by the psychologist Abraham Maslow (1954). He believed that within every person was a set of five hierarchical needs. Lower order needs- physiological, safety and social, were concerned with a person's physical survival requirements, freedom from harm, and sense of belongingness. These needs are satisfied externally. Higher order needs, esteem and self actualization, were concerned with the desire to achieve, be respected and fulfill ones fullest potential. These needs are satisfied internally.
According to Maslow, the highest level unsatisfied need motivates behavior. Once a need is satisfied, the next level need becomes the motivator. For example, a student is taking a distance learning management course. The act of taking the course is fulfilling an esteem need - to achieve mastery of new knowledge. If the student becomes very hungry while reading this chapter, they will have trouble concentrating. Instead, they will begin to day dream about what they will eat as soon as they are done reading this screen! The student has dropped out of fulfilling an esteem need because a physiological need (hunger) became unsatisfied. As soon as the students has something to eat, and no longer experiences hunger, she or he will continue to work on an esteem need and finish reading this chapter.
Management's role is to fulfill worker's lower order needs so that they can be motivated by their higher order needs. Physiological needs are satisfied by providing employees with lunch breaks, bathrooms and water fountains. Safety needs are satisfied by clearly marking emergency exits, providing protective equipment and job training. Social needs are fulfilled by organizing company picnics, soft ball teams, and coffee breaks.
Ms. Matthews' on-the-job frustration stems from the fact that she seems to be motivated by esteem needs (has a high need for achievement/learning) and self-actualization needs and yet is not given the opportunity on-the-job to meet those needs. Fulfilling higher order needs such as esteem requires managers to provide higher level training, delegate responsibility and authority in decision making, provide promotions and methods for recognizing employee performance. While self-actualization is thought to be a person's innate inclination to develop their fullest potential, managers can facilitate this process by providing employees the opportunities to learn new skills, mentor others and time to volunteer in community service.
Process Theory: Vroom's Expectancy Theory
Expectancy theory (Vroom, 1964) states that individual effort is a function of the expectation that activity will be followed a performance which leads to receipt of a desired outcome. There are three important relationships that explain the level of effort an employee will expend:
1. Expectancy, the effort-performance linkage - is the probability perceived by the individual that a given amount of effort will lead to a certain level of performance
2. Instrumentality, the performance/reward linkage - is the degree to which the individual believes that performing at a particular level is instrumental in attaining a desired outcome.
3. Valence, the attractiveness of reward - is the importance the individual places on the outcome or reward that can be achieved from the job. Valence refers to both an individual's goals and needs.
The key to expectancy theory is the understanding that motivation is dependent upon the individual's goal and the linkage between effort and performance, between performance and rewards, and between rewards and individual goal satisfaction. Worker motivation can then be calculated as a function of expectancy, instrumentality, and valence (M=EIV).
Ms. Matthews' motivation waned because while her valence (desire to learn and grow with the firm) remained the same, her expectation and instrumentality dwindled (she perceived that she would not receive opportunities for learning, lower expectations, and she felt that regardless of her performance, the situation was not going to change, lower instrumentality).
2 Discuss What Might be the Impact of Job Design and Style of Supervision (Leadership) on Ms. Matthews' Work Motivation.
The purpose of this question is to check students' understanding of job design and supervision style as well as the student's ability to apply these theories/concepts within a specific business context.
Managers deliberately engage in job design to incorporate the demands of changing environments, the organization's technology, skills and abilities, and individual preferences. When jobs are designed with these intentions, employees are motivated to be productive. Managers can choose to enlarge or enrich jobs. The Job characteristics model (JCM) by Hackman and Oldham (1980) provides a framework for analyzing and designing jobs. A job can be defined according to five core dimensions:
Skill variety, the degree to which a job demands a variety of activities so that an employee can use a number of different skills and talents. Task identity, the degree to which a job requires completion of a whole identifiable piece of work. Task significance, the degree to which a job has a substantial impact on the lives or work of other people. Autonomy, is the degree to which a job provides substantial freedom, independence, and discretion to an individual in scheduling and conducting work. Feedback, the degree to which carrying out the work required by a job results in direct and clear information about performance effectiveness. JCM suggests that these dimensions and their interrelationships impact productivity, motivation and job satisfaction. Furthermore that skill variety, task identity and task significance combine to create meaningful work. Autonomy provides the employee with a sense of responsibility and feedback provides knowledge regarding effectiveness.
The motivation process indicates that intrinsic (internal) rewards are obtained when an employee learns (feedback) that he or she has performed well (autonomy) on a task he or she cares about (experiences meaningfulness).The links between the job dimensions and outcomes are moderated by a person's growth need strength. The higher the growth need strength, the more appropriate JCM. Jobs can be scored for motivating potential (MPS). If jobs score high, the model predicts that motivation, performance and satisfaction will be positively affected.
In analyzing Ms. Matthews' job using the five factors of the model, we might derive the following results:
Ms. Matthews seems to have very low scores in three of the five factors (specifically skill variety, task significance and feedback) and therefore low work motivation. To increase her job's MPS, the firm could:
* Enlarge the job to increase skill variety and task identity
* Create natural work units to facilitate employee ownership and sense of meaningfulness
* Establish direct relationships between Ms. Matthews and her clients to increase skill variety, autonomy and feedback
* Enrich jobs to increase employee responsibility and control
* Provide feedback as employees engage in their jobs, instead of on an occasional basis. Style of supervisory (transactional leadership) refers to theories focusing on "what" an
effective leader is and how to effectively lead. Leadership is the ability to influence people toward the achievement of a common goal. Douglas McGregor (1960) denoted that leaders possessed two differing assumption about employees and therein lead them accordingly. Theory X leaders assume that people are naturally lazy, seek to avoid responsibility, and must be coerced to perform. These types of employees appear to be motivated by lower order needs. Managers lead employees using a reward and punishment system which focuses upon being direct and providing close supervision. Theory Y leaders assume the opposite. Employees are viewed as creative, seeking responsibility and are self directed. Operating from higher order needs, managers can get the most from employees by including them in decision-making and giving them challenging jobs.
It seems evident that Ms. Sutton, given her controlling approach (Theory X) and inability to share information, assumes that Ms. Matthews is either incapable of handling a more enlarged and/or enriched job and/or is unwilling to accept Ms. Matthews' need for personal growth and development. Regardless of her immediate supervisor's more Theory Y approach, Ms. Sutton's leadership style has clearly negatively impacted Ms. Matthews' desire to perform and has forced Ms. Matthews to confront the possibility of resigning from the firm.
3. Using the Options "Exit, Voice, and Loyalty" (Hirschman, 1970), Develop Three Alternative Solutions for Ms. Matthews Relative to her Ability to Remain with H & H.
This question requires students to first define Hirschman's theory of marketplace behavior (this may involve secondary research) and then apply the simple model to help define Ms. Matthews' alternatives to her problem.
Hischman (1970) hypothesized that members of an organization have two possible responses when they perceive that the organization is demonstrating a decrease in quality or benefit to them as a member: they can exit (withdraw from the relationship); or, they can voice (attempt to repair or improve the relationship through communication of the complaint, grievance or proposal for change). Economically, employees can choose to quit their unpleasant job, or express their concerns in an effort to improve the situation. The general principle, therefore, is that the greater the availability of exit, the less likely voice will be used. Loyalty comes into play in terms as a mediating variable between exit and voice. For example, when there is strong loyalty to the organization, exit may be reduced, therein forcing the employee to choose between voice and no action whatsoever. This is especially true where options to exit are not appealing (small job market). By understanding the relationship between exit, voice, and loyalty, organizations can craft the means to better address their members' concerns and issues, and thereby effect improvement. Failure to understand these competing pressures can lead to organizational decline and possible failure.
Students may present several differing alternatives based upon their application of the above model (exit, voice, and loyalty). Interestingly enough, Ms. Matthews has thought about just one of the options, exit. Her loyalty, tempered by the job market, will determine whether or not she seriously follows through with her desire to leave. Interestingly enough, nowhere in the case does Ms. Matthews think about her other major option, voice, and therefore whom she should be "voicing" to (her immediate supervisor, Ms. Sutton, or to the owner Mr. Blake, or some combination therein). By limiting her options she, by definition, reduces the possibility of implementing a well-thought out solution strategy.
4. What is the Impact of Mr. Blake's Leadership Style on H & H's Organizational Culture and Structure?
The purpose of this question is to have students shift their attention away from the case's protagonist (Ms. Matthews) and toward the founder of the firm in order to see if students can determine what might be the root cause of H & H's growth problems.
Students might note that Mr. Blake's leadership style emerged as the firm shifted from a small one man operation (where he employed just a part-time assistant) to a full-blown business operation with administrative staff. His leadership style could best be characterized as laissez-
faire (he left the back office operation to his key administrator, Ms. Sutton) or, using the Mr. Blake-Mouton grid (1980), a 1,1 manager. He seemed to have little concern for the effectiveness or efficiency of his back office staff and also seemed to have little concern for how people were treated outside of his own area, client consultation. As long as the work of his office got done (and not how well it got done and how well people were treated in the process of getting the work done) and he was free to deal with clients (or train others to do so), he was content to be a "defacto" absentee owner/manager.
The question then addresses the organization's structure and culture. Organizational structure is the formal framework by which job tasks are divided, grouped, and coordinated. The activities of organizational design are seen in the developing or changing the structure by manipulating six key elements: work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization. The managerial challenge is to design an organizational structure that facilitates effective and efficient work as employees strive to achieve organizational goals in light of the strategy of the firm.
Students should be able to identify the fact that the firm's organizational structure is one of departmentalization by function. Functional structures group similar or related occupational specialties together. Economy is achieved through specialization with the firm capitalizing on its internal distinctive competencies. However, the organization risks losing sight of its overall interests as different departments pursue their own goals and accountability is solely at the top. Coordination between departments is difficult since these structures have generalists managing specialists that their competitive advantages get lost in higher levels of administration. See the figure below.
[FIGURE 1 OMITTED]
Under each Vice-President would be more specialized departments. For example, reporting to the V.P. of Marketing could be department heads for market research, product development, advertising and promotion, sales, and distribution.
Mr. Blake's structure is functional since the administrative workers report to Ms. Sutton and her supervisors while agents report directly to Mr. Blake. Students might note that this relationship seems imbalanced in that individual agents have direct access to the President of the firm while administrative assistants like Ms. Matthews do not. Furthermore, although the President in theory oversees the administrative operation of the firm in this structure, it is clear that his leadership style 'overrides' the structure's built-in control mechanism (command and control from the top). In addition, students might note that the President is actually on par if not lower than Ms. Sutton in the hierarchy; Ms. Sutton has two supervisors reporting to her who handle more of the detailed workers while Mr. Blake has all of the agents and Ms. Sutton reporting to him. Since he chooses not to manage Ms. Sutton he has in fact lowered himself to the rank of a supervisor.
This clearly has had an impact on the firm's culture. Organization culture is the system of values, rules, symbols, taboos and rituals that evolve over time. It is the common perception shared by members that identifies how thing get done in the organization. Culture drives expected behaviors internal to the organization as well and those engaged when interacting with the firm's surrounding environment. Understanding an organization's culture helps an employee learn the ropes and discover whether their personality is a good fit.
Organizational cultures are integrated, differentiated, or fragmented. An integrated or homogenous culture is characterized by consistency, organization-wide consensus, and clarity and this culture reacts to change as a whole as one unit. Differentiated cultures, on the other hand, have conflict and usually have subcultures broken down into those groups in power (the haves, the dominant coalition) and those outside the power structure (the haves not, the minority coalitions). These cultures are inconsistent, have ambiguity in the minority subcultures yet the subcultures have internal consensus. The firm reacts inconsistently to change, with some subcultures embracing it while other parts will resist it, based upon the source of the change. Fragmented cultures are prominent for their heterogeneity, ambiguity and plurality of disconnected subcultures. It is not clear in this structure which subculture runs the firm (power is diffused) and there is certainly not a stable organizational consensus. In this type of culture differences of subcultures are not only tolerated but considered the norm and subcultures will emerge to address organizational crisis when needed.
Mr. Blake's absentee leadership style has allowed Ms. Sutton to set the culture of her portion of the firm; a differentiated culture where Ms. Sutton clearly dictates both the formal and informal rules of her department. Ms. Matthews perceives herself as being unfairly treated and not a part of the dominant coalition (cannot influence the leaders); she therefore felt as if she no longer should stay with the firm.
5. Describe How the Growth ofH&H (using Greiner's 1972 Model of Organizational Growth) has been Both Evolutionary and Revolutionary.
This question requires student to first understand the Greiner organizational growth model and then apply the model to the current case situation.
Students should first point out that Greiner (1972) indicated that organizations have evolutionary and revolutionary growth spurts (or cycles) based upon the age of the organization, its size, its evolutionary stage and the growth rate of the industry and therefore a firm's structure evolves over time. Greiner developed a five phase model of organizational growth where evolutionary periods are characterized by a dominant management style and revolutionary periods denoted by a dominant management problem or crisis. The crisis points are directly related to the prior management style with the solution strategy being the next managerial style (organizational phase) followed by a new structure.
Phase 1, creativity, signifies the birth of an organization with the focus on creating both a product and a market. The leadership of the company is focused upon technological and/or entrepreneurial ventures and perceives that the main task is making and selling of new products and services. A leadership crisis arises as the company grows in that the informal style of leadership is not capable of properly directing the new employees. A more formalized approach that emphasizes operating efficiency and financial controls is needed in order for the organization to survive its first growth spurt.
In phase 2, direction, a functional organizational structure replaces the more simple reporting arrangement with the key functional area managers (marketing, manufacturing, R&D, etc.) taking over responsibility and providing expert direction. Simultaneously, more formalized managerial systems are introduced (rules, policies, procedures) with incentives and work standards adopted by the company. A crisis of autonomy develops in that, as the company grows and the organization becomes more complex, lower level workers find that they lack the authority to make on-the-spot decisions although they have the expertise and knowledge in which to make an informed judgment. The centralized system developed in phase 2 cannot respond quickly enough to market demands and the organization stalls without another revolution.
Without going into the other phases of the model, it is evident that Mr. Blake demonstrated creativity when he introduced his new idea for a firm that was strongly client- driven and service based. Mr. Blake clearly was focused on obtaining and retaining customers through strong value-added products and services and spent his energy on creating a large customer base. His success led to the first leadership crisis; the firm evolved from a small, sole proprietorship, to a small business with full-time employees and required a more formalized managerial approach. Mr. Blake created a revolution when he fashioned a formal organizational hierarchy and directed Jane to officially become office manager. Her prior management style when she was acting manager was team-oriented, yet, when she became the leader she started to impose direction and centralize information flow through her position. Because of this revolutionary change, Ms. Matthews experienced a crisis of autonomy in that she lacked the authority to learn about how her job related to other jobs in the firm (did not have access to needed information). She also felt she was denied the ability to learn how to make better informed choices about her tasks and responsibilities. According to Greiner, delegation is the revolutionary change (a decentralized organizational structure such as departmentalization by geography, division, or by product) needed to allow the firm to grow and evolve.
6. Propose Solution Strategies for Addressing any Problems Identified in Questions 4 and 5.
This question challenges students to move from the analysis phase (questions 4 and 5) to the development of theory-driven solution strategies.
Recapping the answers to questions 4 and 5, students should indicate the following:
Mr. Blake's laissez-faire leadership style, which was appropriate when the firm was in its creativity phase (looking for clients), became inappropriate (a misfit so to speak) when the firm evolved into a larger organization with a more formalized structure. A differentiated culture emerged where Jane, given her Theory X leadership style, created what was apparently a dysfunctional culture from Ms. Matthew's perspective for the back office's operations.
According to Greiner, delegation is the revolutionary change (a decentralized organizational structure such as departmentalization by geography, division, or by product) needed to allow the firm to grow and evolve. For delegation to occur within Jane's back office operation several conditions would have to change:
Mr. Blake would have to become cognizant of the fact that Ms. Sutton has filled his lack of active leadership with a leadership style that seems to be stymieing the growth of at least of one his employees. Without Mr. Blake's realization that his organization has an evolutionary problem (that it has outgrown his current leadership style and therein the organizational culture created from it) which requires a "revolutionary" solution, no change can occur.
Mr. Blake, once this realization has occurred, would have to want to become more actively involved in the management of the firm's entire operation. He may attempt some stop- gap structural, cultural, and procedural interventions but without his active engagement in these issues Jane will continue to be able to exert a strong influence on the organization's back office operation.
Mr. Blake would also have to accept the possibility that once he does become more actively involved in the firm's back office operation that Ms. Sutton may exhibit "exit, or voice" behaviors of her own and he therefore must be prepared for her possible resistance to change and loss of power.
Mr. Blake's leadership style needs to change so that he can focus more on back office task performance as well as a concern for people within the back office. This would require that Mr. Blake perform the role of the CEO, as per the organizational chart, and manage both sides of his firm's operation. This may require that he appoint one of his consultants as manager of the consulting unit and that he obtain CEO training while his two managers (including Ms. Sutton) obtain managerial training as well. Once Ms. Sutton and Mr. Blake learn how to properly delegate authority (Ms. Sutton does not delegate; Mr. Blake delegates but does not follow-up on what he has delegated), the back office's culture may change therein producing a more integrated culture for the firm.
An alternative solution would be to form cross functional management teams where client consultants work with back office personnel on a client by client basis and where all personnel are trained in the firm's entire operation. This would highlight the need for personalized customer service and allow greater flexibility in terms of work performance.
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APPENDIX A TEACHING STRATEGIES
Preparing the Student Prior to Case Analysis
There are several approaches, none of which are mutually exclusive, that an instructor may employ in terms of utilizing this case. It is strongly recommended that, regardless of the specific methodology employed, students, prior to reading this case, be exposed to a broad range of material on organizational behavior (leadership, culture, structure, job design, and work motivation) and more specifically Greiner's model of organizational evolution and revolution. This will provide students with the proper background and knowledge base and allow them to acknowledge some of the managerial and systemic issues embedded in the case.
This conceptual framework may be delivered prior to assigning the case by using at least one (1) of the follow methods:
* a short lecture and/or discussion session on the above noted topics.(See Teaching Note Appendix C "Motivation Theory" as a sample student handout.)
* a reading assignment prior to reading the case that covers several of the topics mentioned.
* a short student presentation on each topic.
* a guest lecturer on one of the topics.
Case Method
Although most of the students in a undergraduate business programs may have had some exposure to the case method, it behooves the instructor to provide students with a review of the case method of analysis. In the traditional case method, the student assumes the role of a manager or consultant and, therein, takes a generalist approach to analyzing and solving the problems of an organization. This approach requires students to utilize all of their prior learning in other subject areas, although the focus should be on the current course content. It is strongly suggested that students prepare for the case prior to class discussion, using the following recommendations:
* allow adequate time in preparing the case
* read the case at least twice
* focus on the key issues
* adopt the appropriate time frame. (Pearce and Robinson, Jr., 2005)
The instructor's role in case analysis is one of a facilitator. The instructor: (1) helps to keep the class focused on the key issues; (2) creates a classroom environment that encourages classroom discussion and creativity; (3) bridges "theory to practice" by referring back to key concepts learned in this or prior courses; and (4) challenges students' analyses in order to stimulate further learning and discussion. There are several variations of the aforementioned approach including: written assignments, oral presentations, team assignments, structured case competitions, and supplemental field work. (Nicastro and Jones, 1994).
Regardless of the variation employed, it is recommended that the students' work be evaluated and graded as partial fulfillment of the course's requirements. However, if this case is not employed as a comprehensive case, it is not recommended that this case (and its related assignments) have a large weight or impact on students' overall course standing.
Using Case Questions. Whether or not the instructor assigns questions for students to analyze with the case is usually a matter of educational philosophy and student readiness. Naumes and Naumes, for example, thought that if the questions were embedded in the case that "students will tend to focus only on the issues specifically raised by the questions (Naumes and Naumes, 1999). Lynn (1999), on the other hand, noted that the use of assignment questions provided students with more concrete guidance in case preparation and analysis; specifically directing them to consider the decision to be reached.
In deciding whether or not to assign questions, the instructor should first answer the following questions:
1 What is the level of course instruction?
2 What type of case is being taught? (Iceberg, incident, illustrative, head, dialogue, application, data, issue, or prediction - see Lundberg et. al., 2001 for full descriptions.)
3 What is the instructor's preliminary assessment of the students' ability to be self-directed learners?
4 What are the students' previous experiences with case instruction?
5 If the students have already been exposed to the case method, to what types of cases have they been exposed? Case incidents (1-2 page cases with questions)? Short cases (3-8 page cases with and/or without case questions? Comprehensive cases (greater than 8-15 pages) Harvard-style cases (greater than 15 pages)? (David, 2003)
6 What is the instructors preferred method for case instruction? (For example, "sage on the stage", "guide on the side", "student as teacher" (student-lead discussions), "observer and final commentator" (open class discussion with faculty summation, etc.).
Role-Playing (55 minutes)
Role-playing enacts a case and allows students to explore the human, social, and political dynamics of a case situation. This case lends itself quite well to a role playing exercise, since it involves a rather simple situation with only three characters and, therefore, most of the class can actively participate in this exercise.
Prior to role-playing the case part, students should be asked to not only read the case but to also answer the following questions:
1. Who are the key participants in the case? Why?
2. What is the "role" of each of these participants in the organization?
3. What is the dilemma that the characters are facing and/or how can they assist someone else in solving a problem?
The instructor may either go through these questions prior to case enactment or wait for the role playing exercise to be completed in order to use this material to debrief the class.
Step 1: Assignment of Roles & Instructions (5 minutes)
The class should form groups of four to five students with four of the students enacting the key roles in the case (Ms. Matthews, her immediate supervisor, Jane the office manager, and the owner Mr. Blake); with the other student acting as observer. The instructor should pass out a short reminder notice about participants staying within their roles. A brief summary of each role may be handed out to student playing the associated character. (See "Role Play Exercise Character Descriptions" below.)
Step 2: Enactment - Ms. Matthews' resignation (20 minutes)
The student enacting the role of Ms. Matthews' should start the conversation by explaining why she has called this meeting, which is to discuss her future with the firm. The student should be very clear on why Ms. Matthews is raising this issue now BUT not reveal her desire to immediately leave the firm (may be revealed later on as the role play continues) if her situation does not change. The conversation should continue within the time limit, with the observer taking notes as to how the other three students reacted to Ms. Matthews' request and more specifically indicating whether Ms. Matthews quit or was given some sort of accommodation in terms of job enrichment. The students' group decision should be written down on a piece of paper and handed to the instructor when they are completed.
Step 3: Exercise Analysis (20 minutes)
The instructor should allow each observer in the group to report on how the group dealt with Ms. Matthews' request and what the results were (i.e. resignation, job enlargement, job enrichment, etc.). The results can then be amalgamated in table form and the class can then summarize the results. The following questions could be asked by the instructor in leading a debriefing discussion:
* Did the majority of the class agree with on a solution strategy or did Ms. Matthews resign from her position?
* If resignation, why? If a solution was agreed upon, why?
* What were the differing class solutions? How much did they vary by?
* Which solution would seem to best address Ms. Matthews' concerns? Was there an even better solution not presented?
* If groups had more lenient punishments or none at all, what were they and what was their rationale? Step 4: Debriefing the Exercise (10 minutes)
The instructor should have the class as a whole comment on the results of the role-play and determine with the class their overall sentiment towards the problem. Students should also be given the opportunity to comment on the role-playing exercise as a learning instrument. The instructor might ask the class the following questions: Did this exercise animate the case? Did students get a "feel" for the issues surrounding Ms. Matthews and her desire for more challenging work?
What were the strengths and weaknesses of the exercise? What changes would they make to the exercise given their experiences with it?
The debriefing session should produce closure for students by connecting the theory and practice of leadership, culture, structure, job design, and work motivation with case specifics and the results of the role-playing exercise.
Role Play Exercise Character Descriptions
This short summary has been developed to facilitate the role playing exercise found after in this TN after the learning objectives. These descriptions go beyond the material in the case (add more detail) and therefore should not be employed as part of a general case discussion. Students should only read their own role description and student observers should not have access to this material.
Christopher Mr. Blake - the owner of H & H. Chris is a hands-off, liaissez-faire manager whose real interest is in customer service and working with his clients. His focus is on business expansion (new products, new services, more agents) and he has little interest in how the back office operates except as it might negatively affect service delivery to his clients and benefits providers. He does not want to know the details as to how things get done as long as they get done. He trusts Jane implicitly with running the back office and thinks she does a splendid job
Jane - the Office Manager. Jane is very loyal to Mr. Blake and rightly so; he took her from a dead end job in a large insurance firm and made her his number two in command (key person). She enjoys the freedom that he gives her to run the office and she is proud that she runs a very tight ship. People know what they are supposed to do and not to do to do their jobs. Jane is confident that this system of doing things (making everyone's task as simple and straightforward as possible; minimizing information overload by keeping everyone's knowledge about the firm's operation to within their own job scope) is the best way to run the firm. She continuously points to the firm's growth as an indication of the firm's success.
Ms. Matthews' supervisor - (use the actual name of the person playing this role). The supervisor is a recent college graduate who is very loyal to the firm and Mr. Blake and who sees his/her future in the successful growth of the firm. Having worked with Jane for a long time, the supervisor has gotten used to her "conversion" from a fun loving coworker to the "hard nosed" boss yet, within his/her own unit, kept the "fun" part of working with people. The supervisor is quite loyal to Jane as well but wishes she would allow people more leeway in carrying out their jobs. The supervisor's biggest hope is that as the firm grows larger, more higher level mangers will be needed and that Mr. Blake will promote those from within the fill those positions.
Ms. Matthews - Ms. Matthews is a high achiever who wants to learn from every experience. She loves challenges and finds solving of highly complex problems irresistible. She thought that in a small firm such as H & H that she would be exposed to every facet of the business and would therefore get a "big picture" of what it takes to run a financial services firm. Instead, she has been placed into a "box" and told that she should only operate within the confines of her job. She is upset, frustrated, and feeling depressed and is wondering what, if anything, can be done to make her job more rewarding. She has called a meeting with her supervisor, Jane, and Mr. Blake as a last ditch effort to salvage her job. If her job is not going to change she is prepared to resign (has already typed up her letter of resignation).
TN APPENDIX C
Motivation Theory
Maslow's Hierarchy of Needs
A popular theory of motivation was developed by the psychologist Abraham Maslow. He believed that within every person was a set of five hierarchical needs. Lower order needs- physiological, safety and social, were concerned with a person's physical survival requirements, freedom from harm, and sense of belongingness. These needs are satisfied externally. Higher order needs, esteem and self actualization, were concerned with the desire to achieve, be respected and fulfill ones fullest potential. These needs are satisfied internally.
According to Maslow, the highest level unsatisfied need motivates behavior. Once a need is satisfied, the next level need becomes the motivator. For example, a student is taking a distance learning management course. The act of taking the course is fulfilling an esteem need - to achieve mastery of new knowledge. If the student becomes very hungry while reading this chapter, they will have trouble concentrating. Instead, they will begin to day dream about what they will eat as soon as they are done reading this screen! The student has dropped out of fulfilling an esteem need because a physiological need (hunger) became unsatisfied. As soon as the students has something to eat, and no longer experiences hunger, she or he will continue to work on an esteem need and finish reading this chapter.
Management's role is to fulfill worker's lower order needs so that they can be motivated by their higher order needs. Physiological needs are satisfied by providing employees with lunch breaks, bathrooms and water fountains. Safety needs are satisfied by clearly marking emergency exits, providing protective equipment and job training. Social needs are fulfilled by organizing company picnics, soft ball teams, and coffee breaks.
Fulfilling higher order needs such as esteem requires managers to provide higher level training, delegate responsibility and authority in decision making, provide promotions and methods for recognizing employee performance. While self-actualization is thought to be a person's innate inclination to develop their fullest potential, managers can facilitate this process by providing employees the opportunities to learn new skills, mentor others and time to volunteer.
McGregor's Theory X and Theory Y
This motivation theory is really a set of assumptions about people's behavior. Theory X assumes that people are naturally lazy, seek to avoid responsibility, and must be coerced to perform. These types of employees appear to be motivated by lower order needs. Manager's control behavior and levels of effort through rewards and punishments. Theory Y assumes the opposite. Employees are viewed as creative, seeking responsibility and are self directed. Operating from higher order needs, manager's can get the most from employee's by including them in decision-making and giving them challenging jobs.
Hertzberg's Motivation-Hygiene Theory
Frederick Hertzberg discovered that work attitudes had two distinct independent dimensions; satisfaction and dissatisfaction. These dimensions are independent because the factors -motivators, that increase employee satisfaction, are different from the factors that contribute to dissatisfaction- called hygiene factors. Motivators are intrinsic, resemble higher order needs and include: the work itself, achievement, recognition, responsibility, advancement, and growth. Hygiene factors are extrinsic, resemble lower order needs, and include supervision, policy, working conditions, relationship with peers, relationships with subordinates, status and personal life. Managers should seek to build motivators into jobs and to eliminate the effects of hygiene factors that tend to cause dissatisfaction. What's significant about the motivation-hygiene theory is the recognition that just because people are not dissatisfied doesn't necessarily mean that they are satisfied. Also, if people aren't satisfied, it doesn't necessarily mean that they are satisfied.
The underlying assumption of this theory is that satisfied workers will be more productive than unsatisfied workers. Thousands of studies on job satisfaction have been conducted to date. The findings are inconclusive.
A common theme among these theories of motivation is the idea that people are driven by lower order and/or higher order needs. It is important for managers to understand the role of need fulfillment in motivation so that they can design tasks, work environments and incentive systems that stimulate workers to perform their best. It is essential that managers provide for lower level needs and recognize that not every employee will be operating at the same need level, or striving to fulfill higher order needs. Although the Need Hierarchy Theory has intuitive appeal, research has not substantiated the notion that all people strive for self-actualization. Another theme in these theories is the shift away from focusing on efficiency and the beginnings of a shift toward the notions of employee effectiveness.
Contemporary Theories of Work Motivation
There are six contemporary theories to be discussed here. The first is a content theory-the 'what' of motivation.
Three-Needs Theory
There are three major motives or needs that characterize employees in work situations:
* Need for achievement (nAch): the drive to excel, to succeed. High nAch people strive for personal achievement rather than the icons of success, seek situations where they can take personal responsibility for finding solutions to problems, prefer rapid and unambiguous performance feedback, and set moderately challenging goals. They perform best when their estimate of success is 50-50.
* Need for power (nPow): the need to make others behave in ways they would not have behaved otherwise. It is the desire to be influential and have impact. High nPow people seek to be in charge and prefer competitive, status-oriented situations.
* Need for affiliation (nAff): the need for friendly and close interpersonal relationships. The desire to be liked and accepted by others finds high nAff people preferring cooperative situations, and prefer relationships requiring a high degree of mutual understanding.
The majority of research has been conducted on nAch. Results indicate that: High nAch individuals are successful in entrepreneurial activities such as running their own businesses or managing autonomous business units and in sales positions. They do not make especially good managers in large organizations. The best managers are individuals with high nPow, and low nAff.
Goal-Setting Theory
Goal-setting theory proposes that specific goals increase performance and that difficult goals, when accepted result in higher performance. Goal specificity acts as an internal stimulus. Thus, students told they need to maintain a "B" average to remain a business major, should perform better than when they are told to maintain a "C" average (easy goal), or to "do their best" (general goal). Further, the student must believe that maintaining a "B" is important (goal acceptance).
Individuals striving to achieve goals that are specific, difficult, and accepted also perform better when feedback is provided to guide behavior. Self-generated feedback- where an employee can monitor his or her own progress- is a more powerful motivator.
This theory also has certain contingency factors. Performance increases when goals are made public, if the person has an internal locus of control, and when goals are set rather than assigned. The higher a person's self- efficacy- belief that he or she can perform the task- , the higher the level of self-confidence and level of motivation. This motivational theory is culturally bound, explaining motivation for North American cultures. In general, goal- setting theory indicates that an individual's purpose directs action, and that hard and specific goals are a powerful motivating force.
Reinforcement Theory
Reinforcement theory suggests that motivation is externally caused. What controls behavior are reinforcers- consequences following actions- that serve to increase the probability of behavior. This theory was is presented as a method for shaping behavior. It also provides insight into motivation. Thus, manager's can influence employee behavior by reinforcing the acts deemed favorable.
Designing Motivating Jobs
Managers can deliberately engage in job design to incorporate the demands of changing environments, the organization's technology, skills and abilities, and individual preferences. When jobs are designed with these intentions, employees are motivated to be productive. Managers can choose to enlarge or enrich jobs.
Job enlargement is the horizontal expansion of jobs, increasing job scope-including different tasks required to complete a job. For instance: A supermarket employee working in the bakery can have his or her job enlarged from packing finished goods to include placing them on shelves, and designing displays. While addressing the lack of diversity in work, enlargement sometimes leaves employees feeling as if they now perform more components of boring jobs.
Job enrichment seeks to increase job depth by vertically expanding the work to include planning and evaluative functions. Employees are empowered to assume some supervisory tasks, increasing their independence and responsibility. For instance: the supermarket employee working in the bakery can determine the number of hard rolls to bake, in addition to packaging and displaying them, can monitor sales reports to prepare ingredient orders and adjust next day baking requirements. To improve performance the supervisor needs to provide feedback on quality and accuracy. Although enrichment can improve the quality of output, research demonstrates mixed results regarding its effectiveness.
Job characteristics model (JCM) provides a framework for analyzing and designing jobs. A job can be defined according to five core dimensions:
[check] Skill variety, the degree to which a job demands a variety of activities so that an employee can use a number of different skills and talents
[check] Task identity, the degree to which a job requires completion of a whole identifiable piece of work
[check] Task significance, the degree to which a job has a substantial impact on the lives or work of other people
[check] Autonomy, the degree to which a job provides substantial freedom, independence, and discretion to an individual in scheduling and conducting work
[check] Feedback, the degree to which carrying out the work required by a job results in direct and clear information about performance effectiveness
JCM suggests that these dimensions and their interrelationships impact productivity, motivation and job satisfaction. Skill variety, task identity and task significance combine to create meaningful work. Autonomy provides the employee with a sense of responsibility and feedback provides knowledge regarding effectiveness.
The motivation process indicates that intrinsic (internal) rewards are obtained when an employee learns (feedback) that he or she has performed well (autonomy) on a task he or she cares about (experiences meaningfulness).The links between the job dimensions and outcomes are moderated by a person's growth need strength. The higher the growth needs strength, the more appropriate JCM.
Jobs can be scored for motivating potential (MPS)- If jobs score high, the model predicts that motivation, performance and satisfaction will be positively affected. To increase a job's MPS, managers can:
[check] Enlarge jobs to increase skill variety and task identity
[check] Create natural work units to facilitate employee ownership and sense of meaningfulness
[check] Establish direct relationships between workers and their clients to increase skill variety, autonomy and feedback
[check] Enrich jobs to increase employee responsibility and control
[check] Provide feedback as employees engage in their jobs, instead of on an occasional basis Equity Theory
Equity theory proposes that employees perceive what they get from a job situation (outcomes) in relation to what they put into it (inputs) and then compare their inputs-outcomes ratio with the inputs-outcome ratio of relevant (referent) others. A referent can be individuals with similar jobs, organizational policies and procedures or the person's past experiences. The choice of a particular referent is related to the information available and perceived relevance. The foundation of this theory is the belief that people want to be treated fairly.
If an employee perceives the ratio to be equal, then equity exists -he or she perceives that the situation is fair and justice prevails. However if the ratio is unequal, inequity exists and the employee feels either under or over rewarded. This feeling of inequity is similar to perceptual experiences of cognitive dissonance. The person will be motivated to relieve this tension and create a sense of equity or consistency. To create equity employees may:
[check] Distort either their own or other's input and outcome
[check] Behave in some way to induce others to change their own input of outcomes
[check] Behave in some way to change their own input and outcomes
[check] Choose a different comparison or referent other
[check] Quit their job
Expectancy Theory
Expectancy theory states that individual effort is a function of the expectation that activity will be followed a performance which leads to receipt of a desired outcome. There are three important relationships that explain the level of effort an employee will expend:
[check] Expectancy, the effort-performance linkage- is the probability perceived by the individual that a given amount of effort will lead to a certain level of performance
[check] Instrumentality, the performance-reward linkage- is the degree to which the individual believes that performing at a particular level is instrumental in attaining a desired outcome.
[check] Valence, the attractiveness of reward- is the importance the individual places on the outcome or reward that can be achieved from the job. Valence refers to both an individual's goals and needs.
The key to expectancy theory is understanding the individual's goal- and the linkage between effort and performance, between performance and rewards, and between rewards and individual goal satisfaction. For example: A manager wants her employees to improve the quality of their work. She learns that the employees care about quality (goal) and that many of them would like to extend a holiday weekend to four days (valence of reward). The manager defines the new quality standard as 2 defects per 100,000 units produced (performance level). She provides training in new manufacturing technique and coaches her employees in their early post training work (expectancy -she provided the skills necessary that link effort to performance). When the quality level is achieved, she announces that the labor day holiday will be a four day weekend, with full pay (instrumentality and valence).
Deepthy Marunninal, Long Island University - Brooklyn Campus
Adva Dinur, Long Island University - Brooklyn Campus
Herbert Sherman, Long Island University - Brooklyn Campus Instructors' Notes - Figure 1 Applying Hackman-Oldham (1980) JCS Model to Case Job Characteristics L Medium High Skill Variety x Task Identity x Task Significance x Autonomy x Feedback x
