Barbara Russell, a manufacturing vice president, walked into the monthly companywide meeting with a light step and a hopefulness she had not felt in a long time. The company's new dynamic CEO was...


Barbara Russell, a manufacturing vice president, walked into the monthly companywide meeting with<br>a light step and a hopefulness she had not felt in a long time. The company's new dynamic CEO was<br>going to announce a new era of employee involvement and empowerment at Electra Products, an 80-<br>year-old, publicly held company that had once been a leading manufacturer and retailer of electrical<br>products and supplies. In recent years the company experienced a host of problems. Market share<br>was declining in the face of increased foreign and domestic competition. New product ideas were few<br>and far between, departments such as manufacturing and sales barely spoke to one another; morale<br>was at an all-time low, and many employees were actively seeking other jobs.<br>Martin Griffin, who had been hired to revive the failing company, briskly opened the meeting with a<br>challenge.

Extracted text: Barbara Russell, a manufacturing vice president, walked into the monthly companywide meeting with a light step and a hopefulness she had not felt in a long time. The company's new dynamic CEO was going 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 electrical products and supplies. In recent years the company experienced a host of problems. Market share was declining in the face of increased foreign and domestic competition. New product ideas were few and far between, departments such as manufacturing and sales barely spoke to one another; morale was 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 a challenge. "As we face increasing competition, we need new ideas, new energy, a new spirit to make this company great. Moreover, the source for this change is you-each one of you". He then went on to explain that under the new empowerment campaign, employees would be getting more information about how the company was run and would be able to work with their fellow employees in new and creative ways. Martin proclaimed a new era of trust and cooperation at Electra Products. Barbara felt the excitement stirring 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. Now Martin wants to push empowerment. Garbage like empowerment is not a substitute for hard work and a little faith in the people who have been in this company for years. We made it great once, and we can do it again. Just get out of our way." Simon had been a manufacturing engineer with Electra Products 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 with the ideas for implementing the empowerment campaign. Barbara loved her assignment as team leader of the manufacturing group, working on plans to improve 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 complete their 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 to refund up to $500 worth of merchandise on the spot. Make information available to sales people about future products and swap sales and manufacturing personnel for short periods to let them get to 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 major hardware 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 the carefully crafted job categories that have just completed. The finance department argued that allowing the salespeople to make $500 refunds would create a gold mine for unethical customers and sellers. The legal department warned that providing information to sales people about future products would invite industrial spying.
The Team members were stunned. As Barbara mulled over the latest turn of events, she considered<br>her options, keep her mouth shut, takes a chance and confronts Martin about her sincerity in doing<br>empowerment work. Push slowly for reform and labor for continuous support from the other teams,<br>or look for another job and leave a company she cared. Barbra realized there would be no easy choices<br>and no easy answers.<br>1. What is the difference between efficiency and effectiveness? Can managers improve both<br>simultaneously?<br>2. Express your opinion about the new CEO Martin Griffin's absence shortly after the launching of<br>new empowerment campaign.<br>3. Why do some organizations seem to have a new CEO every year or two, whereas others have top<br>leaders who stay with the company for many years? Discuss your opinion.<br>4. Can you think of ways Barbara could have avoided the problems, her team faced in the meeting<br>with department heads?<br>5. How do you feel about having a manager's responsibility in today's world characterized by<br>uncertainty, ambiguity and sudden changes or threats from the environment?<br>

Extracted text: 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? 2. Express your opinion about the new CEO Martin Griffin's absence shortly after the launching of new empowerment campaign. 3. Why do some organizations seem to have a new CEO every year or two, whereas others have top leaders 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 meeting with department heads? 5. How do you feel about having a manager's responsibility in today's world characterized by uncertainty, ambiguity and sudden changes or threats from the environment?
Jun 05, 2022
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