Barbara Russell, a manufacturing vice president, walked into the monthly companywide meeting witha light step and a hopefulness she had not felt in a long time. The company's new dynamic CEO wasgoing to announce a new era of employee involvement and empowerment at Electra Products, an 80-year-old, publicly held company that had once been a leading manufacturer and retailer of electricalproducts and supplies. In recent years the company experienced a host of problems. Market sharewas declining in the face of increased foreign and domestic competition. New product ideas were fewand far between, departments such as manufacturing and sales barely spoke to one another; moralewas at an all-time low, and many employees were actively seeking other jobs.Martin Griffin, who had been hired to revive the failing company, briskly opened the meeting with achallenge. "As we face increasing competition, we need new ideas, new energy, a new spirit to makethis company great. Moreover, the source for this change is you-each one of you". He then went onto explain that under the new empowerment campaign, employees would be getting moreinformation about how the company was run and would be able to work with their fellow employeesin new and creative ways.Martin proclaimed a new era of trust and cooperation at Electra Products. Barbara felt the excitementstirring within her, but as she looked around the room, she saw many of the other employees,including her friend Simon, rolling their eyes. "Just another pile of corporate crap," Simon said later."One minute they try downsizing, the next reengineering. Then they dabble in restructuring. NowMartin wants to push empowerment. Garbage like empowerment is not a substitute for hard workand a little faith in the people who have been in this company for years. We made it great once, andwe can do it again. Just get out of our way." Simon had been a manufacturing engineer with ElectraProducts for more than 20 years. Barbara knew he was extremely loyal to the company. However, he- and many others like him – were going to be an obstacle to the empowerment efforts.Top management assigned selected managers to several problems-solving teams to come up withthe ideas for implementing the empowerment campaign.Barbara loved her assignment as team leader of the manufacturing group, working on plans toimprove how retail stores got the merchandise they needed when they needed it. The team thrived,and trust blossomed among the members. They even spent nights and weekends working to completetheir report. They were proud of their ideas, which they believed were innovative but early achievable.Permit a manager to follow a product from design through sales to customers. Allow salespeople torefund up to $500 worth of merchandise on the spot. Make information available to sales peopleabout future products and swap sales and manufacturing personnel for short periods to let them getto know one another's jobs.When the team presented its report to department heads, Martin Griffin was enthusiastic. However,shortly into the meeting, he had to excuse himself because of a late-breaking deal with a majorhardware store chain. With Martin absent, the department heads rapidly formed a wall of resistance.The director of human resources complained that the ideas for personnel changes would destroy thecarefully crafted job categories that have just completed. The finance department argued thatallowing the salespeople to make $500 refunds would create a gold mine for unethical customers andsellers. The legal department warned that providing information to sales people about futureproducts would invite industrial spying. The Team members were stunned. As Barbara mulled over the latest turn of events, she consideredher options, keep her mouth shut, takes a chance and confronts Martin about her sincerity in doingempowerment work. Push slowly for reform and labor for continuous support from the other teams,or look for another job and leave a company she cared. Barbra realized there would be no easy choicesand no easy answers.1. What is the difference between efficiency and effectiveness? Can managers improve bothsimultaneously?2. Express your opinion about the new CEO Martin Griffin's absence shortly after the launching ofnew empowerment campaign.3. Why do some organizations seem to have a new CEO every year or two, whereas others have topleaders who stay with the company for many years? Discuss your opinion.4. Can you think of ways Barbara could have avoided the problems, her team faced in the meetingwith department heads?5. How do you feel about having a manager's responsibility in today's world characterized byuncertainty, ambiguity and sudden changes or threats from the environment?

We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

The Team members were stunned. As Barbara mulled over the latest turn of events, she considered her options, keep her mouth shut, takes a chance and confronts Martin about her sincerity in doing empowerment work. Push slowly for reform and labor for continuous support from the other teams, or look for another job and leave a company she cared. Barbra realized there would be no easy choices and no easy answers. 1. What is the difference between efficiency and effectiveness? Can managers improve both simultaneously?

The Team members were stunned. As Barbara mulled over the latest turn of events, she considered her options, keep her mouth shut, takes a chance and confronts Martin about her sincerity in doing empowerment work. Push slowly for reform and labor for continuous support from the other teams, or look for another job and leave a company she cared. Barbra realized there would be no easy choices and no easy answers. 1. What is the difference between efficiency and effectiveness? Can managers improve both simultaneously?

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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