CEO Reed Hastings started Netflix in 1997 after becoming angry about paying Blockbuster Video $40 for a late return of Apollo 13.
CEO Reed Hastings started Netflix in 1997 after becoming angry about paying Blockbuster Video $40 for a late return of Apollo 13. Hastings and Netflix struck back with flat monthly fees for unlimited DVDs rentals, easy home delivery and returns via prepaid postage envelopes, and no late fees, which let customers keep DVDs as long as they wanted. Blockbuster, which earned up to $800 million annually from late returns, was slow to respond and lost customers in droves.
When Blockbuster, Amazon, and Walmart started their own mail-delivery video rentals, Hastings recognized that Netflix was in competition with “the biggest rental company, the biggest e-commerce company, and the biggest company, period.” With investors expecting it to fail, Netflix’s stock price dropped precipitously to $2.50 a share. But with an average subscriber cost of just $4 a month compared to an average subscriber fee of $15, Netflix, unlike its competitors, made money from each customer. Three years later, Walmart abandoned the business, asking Netflix to handle DVD rentals on Walmart.com. Amazon, by contrast, entered the DVD rental business in Great Britain, expecting that experience to prepare it to beat Netflix in the United States. But, like Walmart, Amazon quit after four years of losses. Finally, 13 years after Netflix’s founding, Blockbuster declared bankruptcy. With DVDs mailed to 17 million monthly subscribers from 50 distribution centers nationwide, Netflix is now the industry leader in DVD rentals.
However, its expertise in shipping and distributing DVDs won’t provide a competitive advantage when streaming files over the Internet. Indeed, Netflix’s Watch Instantly download service is in competition with Amazon’s Video on Demand, Apple’s iTunes, HuluPlus at Hulu.com, Time-Warner Cable’s TV Everywhere, and DirectTV Cinema, all of which offer movie and TV downloads. Moreover, unlike DVDs, which can be rented without studio approval, U.S. copyright laws require streaming rights to be purchased from TV and movie studios before downloading content into people’s homes. And that creates two new issues. First, does Netflix have deep enough pockets to outbid its rivals for broad access to the studios’ TV and movie content? Second, can it convince the studios that it is not a direct competitor? HBO, for instance, won’t license any of its original shows, like The Sopranos, for Netflix streaming. It also has exclusive rights for up to eight years for content from Twentieth Century Fox and Universal Pictures. HBO co-president Eric Kessler says, “There is value in exclusivity. Consumers are willing to pay a premium for high-quality, exclusive content.” If other studio executives think this, Netflix will not acquire the video content it needs to satisfy its customers. Planning involves determining organizational goals and a means for achieving them. So, how can Netflix generate the cash it needs to pay the studios? How can it convince them it’s not a competitor so they will agree to license their content?
Netflix must also address the significant organizational challenges accompanying accelerated growth. Hastings experienced the same problem in his first company, Pure Software, where he admitted, “Management was my biggest challenge; every year there were twice as many people and it was trial by fire. I was underprepared for the complexities and personalities.” With blazing growth on one hand and the strategic challenge of obtaining studio content on the other, how much time should he and his executive team devote directly to hiring? Deciding where decisions will be made is a key part of the management function of organizing. So, should he and his executive team be directly involved, or is this something that he should delegate? Finally, what can Netflix, which is located near Silicon Valley, home to Google, eBay, Apple, Hewlett-Packard, and Facebook, some of the most attractive employers in the world, provide in the way of pay, perks, and company culture that will attract, inspire, and motivate top talent to achieve organizational goals?
Question: If you were in charge of Netflix, what would you do?
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DQ2 “Tough Love”
Prior to the completion of this discussion board post, please review:
Reading: Chapter 2 The History of Management Page 22.
Chapter 2 The History of Management PPT Preview the document
Review this website (Links to an external site.), to learn about the relationship between labor and management.
Background: As a manager with lots of experience in negotiations, you’ve experienced a lot of different conflicts. There was one case where a worker argued that he should be allowed to smoke his (legally prescribed) marijuana at his desk. Another time, someone asked you to mediate between two executives who were having a strategic disagreement—one thought that the company should invest in tulip futures, while the other thought that pork bellies were the future. But even with all of this experience, you haven’t seen a case like the one going on at a Mott’s apple juice factory that you’ve been called in to consult on.
Mott’s, a division of Dr. Pepper Snapple Group, employs 305 people at its juice factory in Williamson, N.Y., near Rochester. All 305 employees, however, have been on strike for more than three months. They are protesting the fact that the company wants to make severe cuts in pay and benefits—a reduction of wages by $1.50 (about $3,000 per year), a pension freeze, a reduction in 401K contributions, and a decrease in the health insurance subsidy.
On the surface, these cuts seem to make some business sense because companies all over the world are struggling. But what is so unusual in this case is that Dr. Pepper Snapple Group is more profitable than it ever has been. In the last year, its net income was $550 million, a dramatic improvement from the previous year, when it lost $312 million. Because of this success, employees are accusing the company of being greedy. Stuart Applebaum, the president of the factory workers’ union, says “[Dr. Pepper Snapple doesn’t] even show respect to lie to us. They just came in and said, ‘We have no financial need for this, but we just want it anyway because we figure we can get away with it.’”
The company, meanwhile, defends the pay and benefits cut by arguing that its current labor costs are considerably higher than other local companies. The average pay at the Mott’s plant is $21, whereas other factories and transportation companies in the area pay closer to $14. In a public statement, the company defends the move, saying in part, “As a public company, Dr. Pepper Snapple Group has a fiduciary responsibility to operate in the best interests of all its constituents, recognizing that a profitable business attracts investment, generates jobs, and builds communities.”
You have been assigned to a task force with representatives from management and labor that has been charged with resolving the crisis. As all of you review the files, you realize that this is a critical case; if the employees lose, other companies might be motivated to take similar actions and cut labor costs (and increase profits) even when they are not struggling financially.
Questions: For this management situation, think of yourself as the task force leader and answer the following questions.
How could you help steer negotiations between labor and management so that the conflict between them is healthy and productive? Is that even possible?
Is the company justified in trying to cut costs even when it has made a huge profit? Are the employees justified in not working to protest what they perceive as unfair cuts?
In your post please provide at least two APA references to support your answer (You can utilize the textbook). You can utilize the Purdue Online Writing Lab (OWL) (Links to an external site.)website for the correct way to reference the articles used.
MGT105 Principles of Management
Module 2 Discussion
DQ1 Management Decision
Prior to the completion of this discussion board post, please review:
Reading: Chapter 3 Organizational Environments and Cultures pg. 44
Chapter 3 PowerPoint Presentation Preview the document
Background: Making a New Culture
Home Depot stores used to be known for customer service. A host of friendly employees would help customers navigate a huge inventory, find exactly what they needed, and even provide detailed instruction. Those days seem long gone, though. Under the leadership of the former CEO, the company shifted its focus away from customer service and toward reducing inventory and cutting costs. Stores that once had an employee in nearly every aisle are now being manned by just a handful, even during the busiest times. Customers who were used to getting help and personal attention can no longer find even a cashier, much less someone that can answer their questions on how to use a reciprocating saw.
Marvin Ellison, promoted to CEO in 2008, saw the disastrous results of Home Depot’s lack of attention to customers. In the last three months of 2009, the company lost $54 million. To make matters worse, the company’s reputation took tremendous hits. For many years, it routinely ranked near the bottom of the University of Michigan’s American Customer Satisfaction Index, which measures consumers’ evaluations of all major retailers. Even after Home Depot recovered in these rankings slightly, it still lagged far behind competitors like Lowe’s and Ace. Ellison had to listen to countless stories of how consumers would drive an extra 30 minutes, even an hour, to avoid going to Home Depot.
To turn things around, Marvin Ellison has committed to a new company vision—a culture dedicated to meeting three goals—clean warehouses, stocked shelves, and top customer services. He wants employees to set aside a portion of their shift to do nothing else but take care of customers. He wants to revise evaluations so that employees’ performance is reviewed primarily on the basis of customer service. He wants to give financial incentives to employees who provide great service. He wants to reduce the number of messages that stores and employees get from headquarters so that they can focus on customers. In short, he wants to restore Home Depot’s reputation for providing the very best in customer service.
Ellison has appointed you to a management team that is in charge of setting up a training and evaluating a program that will get the entire company focused on his vision of customer service. You and your team face the difficult task of changing the entire company’s culture so that the entire organization is focused on the customer. How will you do it?
Question:
What kind of training and evaluation program would you institute to change Home Depot’s culture? (Please include and describe two training and evaluation programs you would implement).
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DQ2 The Nature of Management and Ethical Considerations
Prior to the completion of this discussion board post, please review:
Reading: Chapter 4 Ethics and Social responsibility pg. 68
Chapter 4 PowerPoint Presentation Preview the document
Background: Organizational cultures reinforce employees’ behaviors—for better or worse. The ways in which an organization doles out rewards and punishments can also indicate to employees about what is desirable behavior and what is undesirable behavior. For example, Enron rewarded risk-taking and generating high returns. It tended to sanction those who raised concerns or expressed doubts. Also, organizations have authority structures that, at times, can move swiftly and powerfully to address unethical or irresponsible behavior. At other times, of course, authority structures can ignore or even condone such behavior, with predictable devastating results.
Question: How does the nature of management jobs create the possibility for ethical abuses? (Please explain the nature of management jobs and the relationship they may have with ethical abuses, provide an example of ethical abuse that has been present in management).
In your post please provide at least two APA references to support your answer (You can utilize the textbook). You can utilize the Purdue Online Writing Lab (OWL) (Links to an external site.) website for the correct way to reference the articles used.
MGT105 Principles of Management
Module 3 Discussion
DQ1 Management Decision
Prior to the completion of this discussion board post, please review:
Reading: Chapter 5- Planning and Decision-Making pg. 90
Chapter 5 PowerPoint Presentation Preview the document
Background: What Should We Call It?
Your job as a marketing manager at GM certainly has been challenging. Through government bailouts, bankruptcy, and a thorough reorganization, you have had the unenviable job of trying to persuade the buying public that your cars have high-quality and are high-value products. Some of your campaigns went off better than the others—who can forget the disastrous ad campaign that tried to convince married women to buy more pickup trucks? But with exciting new models coming out of factories and a renewed sense of determination from senior executives, you are quite excited about getting the word out about how great GM cars are.
One particular day, you get a phone call from your supervisor, who asks for your help to solve a little problem. It turns out that GM wants to offer an industry-leading warranty on its Opel- and Vauxhall-branded cars that are sold in Europe. The warranty would cover any issues, except for accidental damage, for 100,000 miles, with no limitations on the date. Managers are even exploring ways for the warranty to be fully transferrable so that people who buy a used car will be protected by the warranty.
“Sounds like a great way to sell cars,” you tell your boss, “so what do you need me for?” The problem, he tells you, is that some executives in the company want to market the warranty as a “lifetime warranty.” How is it that a warranty with a mileage limit qualified as a “lifetime” warranty? According to GM research, drivers in Britain only drive about 8,200 miles a year, meaning that the 100,000 mile limit would last for about 12 years. Plus, they’ve found that 95 percent of car owners in Britain don’t use their cars for more than ten years. So, they argue that although the warranty has a limit, it’s essentially a “lifetime” warranty because most owners will never use their cars long enough.
Being the ace manager that you are, your supervisor has asked you to make the decision as to whether GM should go ahead with labeling the warranty as “lifetime.” The phrase “lifetime warranty” certainly has a nice ring to it, and your head is full of great ideas about how to take advantage of it to sell more cars. At the same time, you wonder whether, and maybe even when, consumers will get angry about being misled. Is it really a lifetime warranty if it comes with an expiration date? What should you do?
Questions:
What recommendation would you make as to how to label the warranty in marketing campaigns? Why?
In making the decision, how could you benefit from the various group decision-making techniques described in the chapter? Which group decision-making technique might be most effective for the decision you face?
In your post please provide at least two APA references to support your answer (You can utilize the textbook). You can utilize the Purdue Online Writing Lab (OWL) (Links to an external site.) website for the correct way to reference the articles used.
DQ2 What Would You Do?
Prior to the completion of this discussion board post, please review:
Reading: Chapter 6 Organizational Strategy Pg. 112
Chapter 6 Organizational Strategy PowerPoint Presentation Preview the document
Background: Walt Disney Company
Over two decades, your predecessor and boss, CEO Michael Eisner, accomplished much, starting the Disney Channel, the Disney Stores, and Disneyland Paris, and acquiring ABC television, Starwave Web services (from Microsoft cofounder Paul Allan), and Infoseek (an early Web search engine). But his strong personality and critical management style created conflict with shareholders, creative partners, and board members, including Roy Disney, nephew of founder Walt Disney.
One of your first moves as Disney’s new CEO was repairing relationships with Pixar Studios and its then CEO Steve Jobs. Pixar produced computer-animated movies for Disney to distribute and market. Disney also had the right to produce sequels to Pixar Films, such as Toy Story, without Pixar’s involvement. Jobs argued, however, that Pixar should have total financial and creative control over its films. When Disney CEO Michael Eisner disagreed, relations broke down, with Pixar seeking other partners. On becoming CEO, you approached Jobs about Disney buying Pixar for $7 billion. More important than the price, however, was promising Jobs and Pixar’s leadership, President Ed Catmull and creative guru John Lasseter, total creative control of Pixar’s films and Disney’s storied but struggling animation unit. Said Jobs, “I wasn’t sure I could get Ed and John to come to Disney unless they had that control.”
Although Pixar and Disney animation thrived under the new arrangement, Disney still had a number of critical strategic problems to address. Disney was “too old” and suffering from brand fatigue as its classic but aging characters, Mickey Mouse (created in 1928) and Winnie-the-Pooh (licensed by Disney in 1961), accounting for 80 percent of consumer sales. On the other hand, Disney was also “too young” and suffering from “age compression,” meaning it appealed only to young children and not preteens, who gravitated to Nickelodeon, and certainly not to teens at all. Finally, despite its legendary animated films, over time Disney products had developed a reputation for low-quality production, poor acting, and weak scripts. Movies “High School Musical 3: Senior Year,” “Beverly Hills Chihuahua,” “Bolt,” “Confessions of a Shopaholic,” “Race to Witch Mountain,” and “Bedtime Stories” disappointed audiences and failed to meet financial goals. As you told your board of directors, “It’s not the marketplace, it’s our slate [of TV shows and movies].”
With many of Disney’s brands and products clearly suffering, you face a basic decision: Should Disney grow, stabilize, or retrench? Disney is an entertainment conglomerate with Walt Disney Studios (films), parks and resorts (including Disney Cruise lines and vacations), consumer products (i.e., toys, clothing, books, magazines, and merchandise), and media networks such as TV (ABC, ESPN, Disney Channels, ABC Family), radio, and the Disney Interactive Media Group (online, mobile, and video games and products). If Disney should grow, where? Like Pixar, is another strategic acquisition necessary? If so, who? If stability, how do you improve quality to keep doing what Disney has been doing, but even better? Finally, retrenchment would mean shrinking Disney’s size and scope. If you were to do this, what divisions would you shrink or sell?
Next, given the number of different entertainment areas that Disney has, what business is it really in? Is Disney a content business, creating characters and stories? Or is it a technology/distribution business that simply needs to find ways to buy content wherever it can, for example, by buying Pixar and then delivering that content in ways that customers want (i.e., DVDs, cable channels, iTunes, Netflix, social media, Internet TV, etc.)?
Finally, from a strategic perspective, how should Disney’s different entertainment areas be managed? Should there be one grand strategy (i.e., growth, stability, retrenchment) that every division follows, or should each division have a focused strategy for its own market and customers? Likewise, how much discretion should division managers have to set and execute their strategies, or should that be controlled and approved centrally by the strategic planning department at Disney headquarters?
Question: If you were CEO at Disney, what would you do? (consider the information in the text and references to support your claim).
In your post please provide at least two APA references to support your answer (You can utilize the textbook). You can utilize the Purdue Online Writing Lab (OWL) (Links to an external site.)website for the correct way to reference the articles used.
MGT105 Principles of Management
Module 4 Discussion
DQ1 Innovation and Its Place in Business
Prior to the completion of this discussion board post, please review:
Reading: Innovation and Change pg. 136
Chapter 7 Innovation and Change PPT.pptxPreview the document
Background: Organizational innovation is the successful implementation of creative ideas. Technological innovation is both competence enhancing and competence destroying. Companies that want to sustain a competitive advantage must understand and protect themselves from the strategic threats of innovation. Over the long run, the best way for a company to do that is to create a stream of its own innovative ideas and products year after year. Innovation begins with creativity. Although companies can’t command employees to be creative, they can jump-start innovation by building creative work environments in which workers perceive that creative thoughts and ideas are welcomed and valued.
Question: Explain in your own words why innovation matters to companies. Can companies use innovation to establish creative work environments?
In your post please provide at least two APA references to support your answer (You can utilize the textbook). You can utilize the Purdue Online Writing Lab (OWL) (Links to an external site.)website for the correct way to reference the articles used.
DQ2 What Would You Do?
Prior to the completion of this discussion board post, please review:
Reading: Chapter 8 Global Management pg. 158
Chapter 8 Global Management PPT.pptxPreview the document
Background: Groupon Headquarters
From 400 subscribers and 30 daily deals in 30 cities in December 2008 to 35 million subscribers and 900 daily deals in 550 markets today, Groupon got to $1 billion in sales faster than any other company. Starbucks CEO Howard Schultz, who was an eBay board member and is now a Groupon investor and board member, said, “Starbucks and eBay were standing still compared to what is happening with Groupon. I candidly haven’t witnessed anything quite like this. They have cracked the code on a very significant opportunity.” Eric Lefkofsky, who chairs Groupon’s board said, “The numbers got crazy a long time ago, and they keep getting crazier.” So, what is propelling Groupon’s astronomical growth? How does it work?
Groupon sends a daily email to its 35 million subscribers offering a discount to a restaurant, museum, store, or service provider in their city. This “coupon” becomes a “groupon” because the company offering the discount specifies how many people (i.e., a group) must buy before the deal “tips.” For example, a local restaurant may require 100 people to buy. If only 90 do, then no one gets the discount. Daily deals go viral as those who buy send the discount to others who might be interested. When the deal tips (and 95% do), the company and Groupon split the revenue.
Why would companies sign up, especially since half of the money goes to Groupon? Nearly all of Groupon’s clients are local companies, which have few cost-effective ways of advertising. Radio, newspapers, and online advertising all require upfront payment (whether they work or not). By contrast, local companies pay Groupon only after the daily deal attracts enough customers to be successful. Another problem with traditional ads is that they are broadcast to a wide group of people, many of whom have little interest in what’s being advertised. The viral nature of Groupon’s coupons, however, along with tailoring deals based on subscribers’ ages, interests, and discretionary dollars, lets companies target Groupon’s daily deals to customers who are more likely to buy. Groupon’s CEO, Andrew Mason, said, “We think the Internet has the potential to change the way people discover and buy from local businesses.
Because there are few barriers to entry and the basic web platform is easy to copy, Groupon’s record growth and 80 percent U.S. market share have attracted start-up competitors like Living Social, Tippr, Bloomspot, Scoutmob, and BuyWithMe, along with offerings from Google, Facebook, and Walmart. Globally, Groupon’s business has been copied in 50 countries. China alone has 1,000 Groupon-type businesses, including one that has copied Groupon’s website down to the www.groupon.com (Links to an external site.) URL. Likewise, Taobao, which is part of Alibaba Group Holdings, one of China’s largest Internet companies, has a group buying service call “Ju Hua Suan,” which translates to “Group Bargain.”
So although Groupon has grown to $1 billion in sales faster than any other company, competitors threaten to take much of that business, especially in international markets, which Groupon is just starting to enter. As Groupon goes global, should it adapt its business to different cultures? For example, it relies on a large Chicago-based sales force to build and retain business with merchants, and 70 comedy writers to write ad copy. Similarly, who should make key decisions—managers at headquarters or managers in each country? In short, should Groupon run its business the same way all around the world? How should Groupon expand internationally? Should it license its web services to businesses in each area, form a strategic alliance with key foreign business partners (it rejected Google’s $6 billion offer in the United States), or should it completely own and control each Groupon business throughout the world? Finally, deciding where to go global is always important, but with so many foreign markets already heavy with competitors, the question for Groupon isn’t where to expand, but how to expand successfully in so many different places at the same time.
Question: If you were in charge at Groupon, What would you do?
In your post please provide at least two APA references to support your answer (You can utilize the textbook). You can utilize the Purdue Online Writing Lab (OWL) (Links to an external site.)website for the correct way to reference the articles used.
MGT105 Principles of Management
Module 5 Discussion
DQ1 Chapter 9 Management Decision
Prior to the completion of this discussion board post, please review:
Reading: Chapter 9 Designing Adaptive Organizations pg. 184
Chapter 9 Designing Adaptive Organization PowerPoint Presentation Preview the document
Background: Does it matter what people wear to the office? You’ve never thought about that question before. When you first started at your architectural firm—more than 40 years ago now—everyone dressed formally. And it wasn’t just to the office; you remember when families dressed in their best clothes to go to the movies, go out to dinner, and take an airplane flight. When you look around your office lately, it’s quite a different scene. There are interns wearing T-shirts and jeans and mail clerks wearing flip-flops. There are folks sitting at their desks wearing shorts and sneakers. Even most of your managers take advantage of the business casual look, preferring polos and khakis to the three-piece suit that you wear every day.
In the past, on most issues, you’ve given the employees whatever they wanted, so long as they produced good work. You always tried to keep them satisfied and happy in order to create a dynamic, creative environment that produced stunning, innovative building designs. You wonder, however, if things have gotten a bit too casual. It seemed okay when the men in your office wore a jacket and pants with no tie. But really—a T-shirt and jeans? A sweatshirt? A dress that basically looks like a muumuu? And it seems that casual clothing has led to a casual atmosphere. Sometimes you walk into the office to see all the people milling around, chatting, and laughing, and it looks more like a social hour than a place of business.
Apparently, other business owners and managers have similar concerns. According to research data, the number of companies that are allowing business casual throughout the week actually fell. Even the number of companies that are allowing casual Fridays fell by 5 percent. UBS, a Swiss bank, is taking things one step further. Not only did it institute a dress code, but it also gives every employee a 43-page guidebook that is filled with fashion and grooming tips. The guide even prescribes how employees should apply makeup, how often they should get their hair cut, and how to avoid having bad breath (Hint: no onions or garlic!).
Is it time to make a switchback? True, it’s not as if an architect needs to wear a suit and tie to do his or her work well. But at the same time, you’d like to remind your employees that the office needs to be more about work than comfort and fun.
Questions: What are the advantages and disadvantages of having an informal workplace? What are the advantages and disadvantages of having a formal workplace?
In your post please provide at least two APA references to support your answer (You can utilize the textbook). You can utilize the Purdue Online Writing Lab (OWL) (Links to an external site.)website for the correct way to reference the articles used.
DQ2 What Would You Do?
Prior to the completion of this discussion board post, please review:
Reading: Chapter 10 Managing Teams pg. 206
Chapter 10 Managing Teams PowerPoint Presentation Preview the document
Background: Cessna
The words “Cessna Skyhawk” have special meaning for anyone who has ever wanted to learn to fly. At 27 feet long and 8 feet tall, with a 36-foot wingspan, a 140 mph cruising speed, and room for two adults and their luggage, more people have learned to fly with a Cessna Skyhawk than with any other plane in aviation history. In fact, the Cessna Skyhawk is the best-selling plane of all time. Clyde Cessna built his first plane in 1911, and Cessna became a storied name in aviation. Cessna built 750 gliders for the army in World War II, introduced the Skyhawk in 1956, produced the first turbo-charged and cabin-pressurized single-engine planes in the 1960s, delivered its first business jet in the 1970s, topped $1 billion in sales in the 1980s, and then, in one of the worst downturns in the history of the aviation business, nearly went out of business over the next decade and a half.
Sales of general aviation aircraft, which had topped out at 17,000 planes per year, dropped to 12,000 planes within a year, and over the next decade finally hit rock bottom at 928 planes for the entire industry. During the same time, Cessna’s sales of piston-engine planes, like the Skyhawk, dropped from 8,000 per year to just 600. Cessna was forced to lay off 75 percent of the employees at its piston-engine plane factories (Cessna also makes business jets and larger planes) and eventually stopped making piston-engine planes altogether. However, after the economy improved and the U.S. government approved the General Aviation Revitalization Act (barring product liability lawsuits on any plane over 18 years old), Cessna decided to start building its legendary Skyhawks again.
This is where you come in. With nearly 20 years in the company, your first job with Cessna was teaching Cessna dealers how to service and maintain single-engine planes. But now, with profits flowing again and the company’s legal risk greatly reduced thanks to the Revitalization Act, you’ve been made the vice-president of Cessna’s “new” single-engine business. It’s your job to rebuild this part of the business from the ground up. And because pilots tend to remain loyal to the kind of airplane on which they learned to fly, much depends on your success or failure. If you can rebuild Cessna’s single-engine business, the pilots that learn to fly on today’s Cessna Skyhawks will be buying Cessna business jets 20 years from now.
One of the advantages of starting completely over is that you get to design the entire production facility, from its location to the new workers, to the suppliers, everything is up for grabs. For instance, Cessna does most of its production in Wichita, Kansas. But since it left the single-engine plane business, Wichita mostly produces a small number of highly customized jets each year, just the opposite of your business, which is a high number of standardized, single-engine planes. So, given the differences, you locate the new single-engine plane factory in Independence, Kansas, two hours away by car, and only 40 minutes away in one of Cessna’s small planes. Along with a new location, you’re debating taking a new approach to manufacturing planes by using production teams. This decision may strike some colleagues as radical, particularly at conservative-minded Cessna where, one of your fellow managers admitted, “we probably got into a mode of doing things for the future based on how we’d always done things in the past.” But the more you think about it, the more you are convinced that it is the right decision. Instead of using a standard production line where each worker does just one task, you are thinking about using teams to assemble Skyhawks and other single-engine planes. In an incredible departure from the engineering-based standards in which the motions of every worker on the assembly line are studied for a time, cost, and efficiency implications, production teams would be completely responsible for assembling the planes and for costs and quality.
You expect to see several benefits from a team-based approach, increased customer satisfaction from improved product quality, faster, more efficient production, and higher employee job satisfaction. A few things worry you, however. Despite all of their promise, teams and teamwork are also prone to significant disadvantages. They’re expensive to implement. They require significant training. And they only work about a third of the time they’re used. So, despite their promise, you can’t ignore the reality that using teams would be quite risky for Cessna.
Still, you can’t help thinking that teams could pay off and that there might be ways for you to minimize the risk of failure. For example, because the plant will be in a new location, Independence, Kansas, you get to start with a brand new workforce. What kinds of people should you hire for teamwork? What kinds of skills and experience will they need to succeed in a team environment? If you decide to take the plunge and use teams, how much authority and responsibility should you give them? Should they be limited to just advising management, or should you make them totally responsible for the quality, costs, and productivity? Finally, while you’re considering using teams on the assembly line, are there other places in which you might use teams? Not all teams are alike. Maybe there are other places in which teams could contribute to the success of Cessna’s “new” single-engine plane-manufacturing facility?
Question: If you were in charge of Cessna’s “new” single-engine factory, what would you do?
In your post please provide at least two APA references to support your answer (You can utilize the textbook). You can utilize the Purdue Online Writing Lab (OWL) (Links to an external site.)website for the correct way to reference the articles used.
MGT105 Principles of Management
Module 6 Discussion
DQ1 HRM and the Hiring Process
Prior to the completion of this discussion board post, please review:
Reading: Chapter 11: Managing Human Resource Systems pg. 226
Chapter 11 Managing human resource systems PowerPoint PresentationPreview the document
Background: Recruiting is the process of developing a pool of qualified job applicants. Job analysis is a “purposeful, systematic process for collecting information on the important work-related aspects of a job.” Selection is the process of gathering information about job applicants to decide who should be offered a job. To make sure that selection decisions are accurate and legally defendable, the EEOC’s Uniform Guidelines on Employee Selection Procedures recommend that all selection procedures be validated.
Questions:
1. Outline the basic process for human resource planning.
2. What selection procedures do companies use during the hiring process?
In your post please provide at least two APA references to support your answer (You can utilize the textbook). You can utilize the Purdue Online Writing Lab (OWL) (Links to an external site.)website for the correct way to reference the articles used.
DQ2 Diversity in the Workplace
Prior to the completion of this discussion board post, please review:
Reading: Managing Individuals and a Diverse Workforce pg. 258
Managing Individuals and a Diverse Workforce PowerPoint Presentation Preview the document
Background: Diversity exists in organizations when there is a variety of demographic, cultural, and personal differences among the people who work there and the customers who do business there. A common misconception is that workplace diversity and affirmative action are the same yet these concepts differ in several critical ways, including their purpose, how they are practiced, and the reactions they produce. Affirmative action refers to purposeful steps taken by an organization to create employment opportunities for minorities and women. By contrast, diversity has a broader focus that includes demographic, cultural, and personal differences.
Question: What is the current trend in the United States with respect to workplace diversity?
In your post please provide at least two APA references to support your answer (You can utilize the textbook). You can utilize the Purdue Online Writing Lab (OWL) (Links to an external site.)website for the correct way to reference the articles used.
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