Owner's Communication Crisis: Analyzing Carol's Cupcakes Case

Running head: INDIVIDUAL CASE STUDY 1 Individual Case Study Fred Luthans, Brett C. Luthans and Kyle W. Luthans University of Manitoba MGMT 0110: Organizational Behavior Instructor: Sunday Odii Due Date: 22 No .11.55

INDIVIDUAL CASE STUDY 2 Introduction Carol’s Cupcakes is a successful bakery business that specializes in catering for weddings and events. The founder, Carol Thompson, started the business from her home kitchen and grew it into a large company with a loyal staff and a strong customer base. However, Carol faces a major challenge when a contract with a grocery store goes wrong and leaves her with no cash flow and a surplus of ingredients. Carol has to make some tough decisions to save her business and keep her employees happy. The crisis requires Carol to seek the assistance of her team after addressing them.

INDIVIDUAL CASE STUDY 3 Did Carol choose the correct communication medium (meeting) to share her message? Explain why you agree or disagree with her choice I think that Carol used the correct communication medium (meeting) to share her message, but she was late in conducting such type of meeting. I agree with her choice of meeting, but not with her timing. Here are my reasons: A meeting is a suitable communication medium for Carol to address her team and seek their assistance in navigating the crisis, because it allows her to communicate with them in an interactive, personal, and direct way. She can explain the situation clearly, answer their questions, listen to their feedback, and involve them in the problem-solving process. A meeting can also help to build trust, empathy, and collaboration among the team members, who may feel more valued and committed to the business. However, Carol was late in conducting such type of meeting, because she waited until the crisis was already severe and urgent. She should have communicated with her team earlier, when she first realized that she no longer knew the details of her business operations, or when she signed the contract with the grocery store. She could have used the informal system of communication, such as the grapevine or the hallway (Luthans,2021, pp. 230-231) to share relevant information, seek advice, and get feedback from her team. The informal system can be faster, more flexible, and more creative than the formal system, and it can supplement the formal channels of communication. By using the informal system, Carol could have avoided or mitigated the crisis, or at least prepared her team for the possible outcomes.

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INDIVIDUAL CASE STUDY 4 Based on the case study, it seems that Carol did not have a strong relationship, trust, or shared understanding with her team regarding business. She did not know the details of her business operations, such as the inventory, the production, the quality, or the customer feedback. She did not consult with her team before signing the contract with the grocery store, or inform them about the new expectations and challenges. She did not seek their advice, feedback, or assistance. Therefore, I think that the grapevine and the hallway communication and professionalism did not exist in the organization, or they were not used effectively by Carol or her team for the growth of business. If they did exist, they would have helped Carol to communicate with her team more frequently, openly, and informally, and to prevent or solve the crisis more efficiently and collaboratively. Which organizational culture type is Carol's Cupcakes, and what organizational characteristics lead you to that determination? I think the organizational culture type that best fits the company is the clan culture. Clan culture (Heinz,2023) emphasizes collaboration across teams and a horizontal structure. It is characterized by a strong sense of loyalty, trust, and commitment among the members of the organization. Clan culture also values personal relationships, employee empowerment, and participation in decision making. Some of the organizational characteristics that lead me to this determination are: Carol treats her employees like family and cares about their personal lives and well- being. Carol works alongside her staff in the kitchen and does not have a formal hierarchy or job roles. Carol provides her clients with a unique customer service experience and believes that every special event is made more special by her products. Carol relies on her staff to help her

INDIVIDUAL CASE STUDY 5 with the business decisions and challenges. Clan culture can have many benefits, such as fostering a sense of belonging, enhancing creativity, and increasing employee satisfaction and retention. However, it can also have some drawbacks, such as losing focus on the business goals, being resistant to change, and having difficulties in managing conflicts and performance issues. Carol’s Cupcakes may need to balance its clan culture with some elements of other culture types, such as market culture or hierarchy culture, to improve its efficiency, accountability, and competitiveness. Is it ethical of Carol to ask her employees for help resolving a situation that she created? Explain your reasoning behind your answer - Different ethical perspectives may lead to different judgments and evaluations of Carol’s actions. However, based on the social cognitive model of ethics across cultures proposed by Stajkovic and Luthans (Luthans,2021, pp 18), there are some of the factors that may influence the perception and behavior of Carol and her employees in this case. According to the model, national culture is the social foundation for ethical standards and behavior. Carol’s Cupcakes is located in Canada, which is a country that scores high on individualism, low on power distance, and moderate on uncertainty avoidance. This means that Canadian culture values personal autonomy, equality, and tolerance of ambiguity. Therefore, Carol and her employees may be more likely to view ethics as a matter of personal choice and responsibility, rather than as a result of external rules or authority. They may also be more willing to accept and cope with the uncertainty and risk involved in the situation. The model also suggests that institutional factors, such as ethics legislation, which can affect the perception and behavior of individuals and organizations. Carol and her employees

INDIVIDUAL CASE STUDY 6 may be aware of the legal implications and consequences of their actions, and may be more inclined to follow the law and avoid unethical or illegal behavior. The model further indicates that organizational factors, such as codes of ethics, can influence the perception and behavior of individuals and organizations. Carol’s Cupcakes does not seem to have a formal code of ethics or a clear mission statement that defines its values and goals. However, it does have a strong clan culture that emphasizes collaboration, loyalty, trust, and commitment among the members of the organization. Carol treats her employees like family and cares about their personal lives and well-being. She also provides her clients with a unique customer service experience and believes that every special event is made more special by her products. Therefore, Carol and her employees may share a common vision and purpose, and may be more motivated to help each other and the company succeed. Based on these factors, there are pros and cons to Carol’s decision to ask her employees for help. On the positive side, Carol may be demonstrating ethical leadership by admitting her mistake, taking responsibility, and seeking input from her staff. She may also be fostering a culture of trust, collaboration, and innovation by involving her employees in the decision-making process and encouraging them to come up with creative ideas. On the negative side, Carol may be violating ethical principles by shifting the burden and risk to her employees, who may not have the authority, expertise, or resources to deal with the situation. She may also be damaging the culture of loyalty, commitment, and satisfaction by failing to pay her employees on time and jeopardizing their livelihoods. If Carol wanted to work with her employees through a decision making process to develop a way to solve her current problem, which strategy development technique (brainstorming, delphi or nominal) would you recommend she use and why?

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INDIVIDUAL CASE STUDY 7 One possible strategy development technique that Carol could use to work with her employees through a decision making process to solve her current problem is the nominal group technique(Luthans,2021,pp 326). This technique is a structured method for generating and prioritizing ideas in a group settings, it involves following steps:  Each member of the group writes down their ideas individually and silently, without any discussion or influence from others.  Each member of the group shares their ideas one by one, and the facilitator records them on a flip chart or a whiteboard, without any evaluation or criticism from others.  The group discusses the ideas for clarification and evaluation, and eliminates any duplicates or irrelevant ones.  Each member of the group ranks the ideas in order of preference, using a numerical scale or a voting system.  The facilitator aggregates the individual rankings and determines the final priority of the ideas, based on the highest scores or votes. The nominal group technique has several advantages over other techniques, such as brainstorming or the Delphi method, for Carol’s situation. For example:  It reduces the social pressure and groupthink that may occur in brainstorming sessions, where some members may dominate the discussion, conform to the majority opinion, or censor their own ideas.  It encourages the participation and creativity of all members, especially those who may be shy, introverted, or less vocal in brainstorming sessions, by giving them equal opportunity to express their ideas and opinions.

INDIVIDUAL CASE STUDY 8  It provides a clear and transparent process for generating and prioritizing ideas, based on the individual preferences and judgments of the members, rather than on the subjective or arbitrary decisions of the facilitator or the group leader.  It produces a high-quality and diverse set of ideas, as the members can draw on their own knowledge, experience, and perspectives, without being influenced by others’ views or biases. Therefore, the nominal group technique may be a suitable strategy development technique for Carol to use with her employees, as it can help them to collaborate effectively, generate innovative solutions, and reach a consensus on the best course of action for their company. CONCLUSION The Carol case study shows how a small business owner faces an ethical dilemma when she asks her employees for help in resolving a situation that she created. The case study does not give a clear or definitive answer to whether it is ethical of Carol to ask her employees for help, as ethics is a contingent and elusive concept that may depend on the situation, the culture, and the stakeholder. However, the case study suggests some possible approaches and frameworks that can help analyze and evaluate the situation from different angles and perspectives, and identify the pros and cons of Carol's decision and its consequences for herself, her employees, her organization, and her society. The case study is a useful and interesting example of how ethics can be integrated into strategic business decisions, and how ethics can affect the performance and sustainability of a small business. REFERENCES

INDIVIDUAL CASE STUDY 9 Luthans, F., Luthans, B. C., and Luthans, K. W. (2021). Organizational Behavior: An Evidence- Based Approach, 14 th Ed. Chapel Hill, NC: Information Age Publishing, Inc. Heinz, Kate.2023. The 4 Types of Organizational Culture and Their Benefits. The 4 Types of Organizational Culture & Their Benefits | Built In

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