Expert Answer :Management case study 3 questions


Solved by verified expert:Minimal 1,000 and three different scholarly sources referenced in APA format and in text citations. . The book can be used as one source. Distribute the 1,000-word count as even as possible among the questions. (References cannot be counted in the word count). Questions are bolded and case study is provided. Kinicki, A. & Williams, B. (2012). Management: A Practical Introduction (6th Ed.). New York, NY: McGraw-Hill Irwin.
1. The traditional approach for identifying qualified applicants is often driven by old traditions like looking at resumes, degrees, years of experience, and even looks or appearances. What other, more quantifiable, measures might be used when hiring a new employee? Be specific.
Use this scenario to answer the following questions:[In the summer of 2009], an internal Netflix file found its way onto the Internet. The 128 PowerPoint slides set out the company’s culture and talent management strategy. Observers speculated how leaders at the usually guarded Netflix had let such a document leak.As the commentary—pro and con—continues to flow, Reed Hastings, Netflix’s chief executive officer, concedes that corporate leaders leaked the document intentionally “to allow job candidates to self-select.” Netflix has a controversial tough love approach to human capital management. It features a culture governed by few rules and zero tolerance for poor or average performers. Workers can earn top-of-market pay but no bonuses or long-term incentives, and they are responsible for their own development. “It’s not the Bible, it’s just our documentation of what’s working for us,” Patricia J. McCord, chief talent officer and one of the architects of the company, says of the approach. . . .Today the company delivers movies by mail and video streaming. At the end of 2009, it had 12.2 million subscribers, and revenue for the year reached $1.67 billion, up 22% from the previous year. Netflix recruiters have added staff at a rate of more than 20% annually. The company has 1,644 employees, about 500 of whom are salaried professionals. . . .At Netflix, HR professionals serve on the top management team, and McCord and Allison Hopkins, vice president for human resources set the tone. . . .Software engineers, who make up the majority of the professional staff, are the creative lifeline of the organization, and McCord is obsessive about attracting and recruiting the best. Engineers, she observes, have little patience for bureaucracy. . . .Hastings and McCord recognized that elite talent in the Silicon Valley could pick and choose where they worked; many other employers also pay top dollar. What else could Netflix do to recruit? The key to differentiation, they concluded, was to deliver a culture that attracted people who identified with and understood the business, who yearned for a flexible work environment with few constraints, and who—more than anything—wanted to be rubbing elbows with the best talent.At Netflix’s modern headquarters in Los Gatos, California, there are no badges or security checkpoints. There is also no dress code. People, most of whom are casually dressed, come and go continuously. . . .The “creative employee we compete for thrives on freedom,” Hastings says. “We’re more focused on the absence of procedure—managing through talented people rather than a rule book.” But the dearth of rules does not mean that it’s a free-for-all environment: the few rules are reviewed by counsel and are “in compliance of federal laws,” Hastings says. “We try to manage by strong ethics; we’re strong on fairness and equity.”You won’t see Netflix recruiters on college campuses or at entry-level career fairs. “We get a different kind of person than other software companies,” McCordsays. . . .In contrast, new hires at Netflix typically have 7 to 15 years of experience. “They’re accomplished deliverers,” McCord says. “You need to know your craft so you can make a contribution when you walk in. You need to be mature, with enough experience to be able to make independent decisions.” And you need to be drawn to the business; Netflix’s ranks overflow with film aficionados. People who are not interested in “the context” of the business need not apply. . . .In other companies, Hopkins says, “policies are written for the lowest common denominator. Here, we don’t have to do that. You don’t have to write things down. When someone does something wrong, we tell them it was wrong. After that, either they get it or they’re out.” Hopkins contrasts Netflix with Hewlett-Packard, where, she says, “Everything was done bypolicy.” . . .“We are a performance culture based on intellectual prowess,” Hastings says. “We try to be fair, but [the length of an employee’s Netflix career] is not our primary concern. If someone is not extraordinary, we let them go.” Based on personal observations, he says the payoff from an extraordinary performer vs. an average one in creative fields is tenfold.Here then, is perhaps the characteristic that distinguishes Netflix from others recruiting top talent: Leaders are unwavering in their quest for quality and results.If even one person is assessed as mediocre or average during the annual review process but permitted to continue working for Netflix, the elite aura surrounding the workforce will be compromised. Loyalty to people not producing or facing minor setbacks or personal distractions is tolerated, but not for long.“Keeping the house clean is essential to who we are,” Hopkins says. “Too often, really good workers are frustrated at having to work with others who they perceive as average or worse performers. When we ask people why they chose us, they tell us it’s not for the money. It’s the other stuff. [It’s] ‘the places we worked didn’t fire people they should have fired.’ ” . . .Voluntary employee turnover at Netflix is low. The top six executives have been with the company from the beginning. When it comes to terminations, managers follow two rules:No surprises. Employees must know where they stand. Annual 360-degree reviews provide “direct and honest feedback,” employee Walter Stokes says. “It’s tough to get used to doing them, but when they’re done right, they’re better than top-down evaluations.” . . .No-fault divorces. Wherever possible, an amicable departure is engineered. “We want them to keep their dignity,” McCord says. “In many companies, once I want you to leave, my job is to prove you’re incompetent. I have to give you all the documentation and fire you for poor performance. It can take months. Here, I write a check. We exchange severance for a release. To make Netflix a great company, people have to be able to leverage it when they leave” by subsequently getting good jobs.The line manager delivers the news with coaching from HR professionals. “We don’t coddle, it’s not about asking how does someone feel,” Hopkins says. “Usually, people find new jobs quickly.” To date, no one who has been terminated has sued. . . .“There’s no road map that plots out your career,” Stokes adds. “I’ve been here three years, and so far my job and responsibilities have changed every sixmonths.”Hastings says people should manage their own career paths and not rely on the company. “The way you develop yourself is to be surrounded by stunning colleagues. We surround people and let them develop themselves,” he explains.Formal training, except where mandated by law, is not offered. Hastings and HR leaders conclude that most training materials are not useful. “I used to worry that we didn’t do training and developing, but then we previewed some training videos and supporting materials,” McCord recalls. “It was awful. Reed said, ‘This stuff is nauseating and a waste of time.’ ” . . .Netflix salaries are based on market conditions but not on company performance—a practice shareholders could find vexing if the company experiences a downturn. For now, the rationale—comparing top talent to major-league pitchers who receive star-level pay whether the team wins or loses—prevails. To be promoted, a person has to be a superstar in his or her current role and often be willing to take a reduction in pay to take on the new assignment. Executives want people to move up for the challenge, with the expectation that they will earn more once they have proved themselves.2. How would you describe Netflix’s organizational culture? Explain.3. If you were hiring people at Netflix, what questions would you ask applicants to determine if they would fit into the corporate culture? Generate three to five questions.

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PART 4 —Organizing
chapter 8
Organizational Culture,
Structure, & Design
Building Blocks of the Organization
Major Questions You Should BeI Able to Answer
8.1 What Kind of Organizational
Culture Will You Be Operating In?
Major Question: How do I find out
about an organization’s “social glue,”
its normal way of doing business?
8.4 The Major Elements of an
Major Question: When I join an
organization, what seven elements
should I look for?
8.2 Developing High-Performance
Major Question: What can be done to
an organization’s culture to increase
its economic performance?
8.5 Basic Types of Organizational
Major Question: How would one
describe the three types of
organizational design?
8.3 Organizational Structure
Major Question: How are for-profit,
nonprofit, and mutual-benefit
organizations structured?
8.6 Contingency Design: Factors
in Creating the Best Structure
Major Question: What factors affect
the design of an organization’s
kin29546_ch08_226-261.indd Page 227 8/1/12 5:19 PM user-f502
the manager’s toolbox
When Should You Delegate
& When Not? How Managers
Get More Done
All managers must learn how to delegate—to assign
management authority and responsibilities to people
lower in the company hierarchy. But failure to delegate
can happen even with high-powered executives, including
those you might least suspect—such as the president of
Harvard University. Dr. Neil L. Rudenstine, who became F
president of Harvard in 1991, initially became so ex- I
hausted from overwork that he had to stay home for
2 weeks to recover. The incident sent a message that hisN
future survival would depend on his ability to set priori-D
ties and delegate responsibility.1
“To do more in a day, you must do less—not do
everything faster,” says Oakland, California, productivity E
expert Odette Pollar.2 If as a manager you find yourself
often behind, always taking work home, doing your subordinates’ work for them, and constantly having employ-,
ees seeking your approval before they can act, you’re
clearly not delegating well. How do you decide when to
delegate and when not to? Here are some guidelines:3 S
Always try to delegate routine tasks and routine paper- R
work. When there are technical matters, let the experts
handle them.
Delegate Routine & Technical Matters
Delegate Tasks That Help Your
Subordinates Grow
Let your employees solve their own problems whenever3
possible. Let them try new things so they will grow in 1
their jobs.
Don’t Delegate Confidential &
Personnel Matters
Any tasks that are confidential or that involve the
evaluation, discipline, or counseling of subordinates
should never be handed off to someone else.
Don’t Delegate Emergencies
By definition, an emergency is a crisis for which there is
little time for solution, and you should handle this yourself.
Don’t Delegate Special Tasks That Your Boss
Asked You to Do—Unless You Have His or
Her Permission
If your supervisor entrusts you with a special assignment,
such as attending a particular meeting, don’t delegate it
unless you have permission to do so.
Match the Tasks Delegated to Your
Subordinates’ Skills & Abilities
While recognizing that delegation involves some risk,
make your assignments appropriate to the training,
talent, skills, and motivation of your employees.
For Discussion Managers fail to delegate for many
reasons.4 An excessive need for perfection. A belief
that only they should handle “special,” “difficult,” or
“unusual” problems or clients. A wish to keep the parts
of a job that are fun. A fear that others will think them
lazy. A reluctance to let employees lower down in the
hierarchy take risks. A worry that subordinates won’t
deliver. A concern that the subordinates will do a
better job and show them up. Are any of these reasons
why you might not be very good at delegating? What
are some others?
What’s Ahead in This Chapter
We consider organizational cultures and organizational structures, and how they should be
aligned to help coordinate employees in the pursuit of an organization’s strategic goals. We
then consider the three types of organizations and seven basic characteristics of an organization. We next discuss seven types of organizational structures. Finally, we look at five
factors that should be considered when one is designing the structure of an organization.
kin29546_ch08_226-261.indd Page 228 8/1/12 3:28 PM user-f502
How do I find out about an organization’s “social glue,” its
normal way of doing business?
The study of organizing, the second of the four functions in the management process,
begins with a study of organizational culture, which exists on three levels. An organizational culture has four functions.
Want to get ahead in the workplace but hate the idea of “office politics”?
Probably you can’t achieve F
the first without mastering the second. Although hard
work and talent can take you a long way, “there is a point in everyone’s career where
politics becomes more important,”I says management professor Kathleen Kelley Reardon.
You have to know the political climate
of the company you work for, says Reardon,
who is author of The Secret Handshake and It’s All Politics.5 “Don’t be the last person
to understand how people get promoted,
how they get noticed, how certain projects
come to attention. Don’t be quick
Lto trust. If you don’t understand the political machinations, you’re going to fail much more often.”6
A great part of learning to negotiate the politics—that is, the different behavioral and
psychological characteristics—ofY
a particular office means learning to understand the organization’s culture. The culture consists
not only of the slightly quirky personalities you
encounter but also all of an organization’s normal way of doing business, as we’ll explain.
S Culture & Structure
How an Organization’s
Are Used to Implement
Culture of risk. At Pfizer Inc.,
a Connecticut pharmaceutical
company, drug discovery is a
high-risk, costly endeavor in
which hundreds of scientists
screen thousands of
chemicals against specific
disease targets, but 96% of
these compounds are
ultimately found to be
unworkable. The culture,
then, is one of managing
failure and disappointment, of
helping drug researchers live
for small victories.
R large-scale action plans that reflect the organizaChapter 6 described strategy—the
tion’s vision and are used to setAthe direction for the organization. To implement a
particular strategy, managers must determine the right kind of (1) organizational culture and (2) organizational structure. Let’s consider these terms.
Organizational Culture:The System of Shared Beliefs & Values Accord3
ing to scholar Edgar Schein, organizational
culture, sometimes called corporate
culture, is a system of shared beliefs
that develops within an organiza1
tion and guides the behavior of its members.7 This is the “social glue” that binds
members of the organization together. Just as a human being has a personality—
fun-loving, warm, uptight, competitive,
or whatever—so an organization has a
“personality,” too, and that is itsUculture.
Culture can vary considerably, with different organizations having
differing emphases on risk taking, treatment of employees, teamwork,
rules and regulations, conflict and criticism, and rewards. And the
sources of these characteristics also vary. They may represent the strong
views of the founders, of the reward systems that have been instituted,
of the effects of competitors, and so on.8 We discuss organizational culture in this section and in Section 8.2.
Organizational Structure: Who Reports to Whom & Who
Does What Organizational structure is a formal system of task
and reporting relationships that coordinates and motivate an
organization’s members so that they can work together to achieve

kin29546_ch08_226-261.indd Page 229 18/07/12 4:48 PM user-f502
the organization’s goals. As we describe in Sections 8.3–8.5, organizational structure
is concerned with who reports to whom and who specializes in what work.
Whether an organization is for-profit or nonprofit, the challenge for top managers
is to create a culture and structure that will motivate its members to work together and
coordinate their actions to achieve the organization’s goals. (See Figure 8.1.) A major
point is that there must be consistency among all these elements.
Structure &
attitudes &
of goals
figure 8.1
Once a strategy has been created that reflects an organization’s vision, managers must design
F employees in achieving the
the kind of culture and structure that will motivate and coordinate
organization’s goals.
Four Types of Organizational Culture:
Clan, Adhocracy, Market, & Hierarchy
According to one common methodology known as the competing values framework,
E (1) clan, (2) adhocracy,
organizational cultures can be classified into four types:
(3) market, and (4) hierarchy.9 (See Figure 8.2.)
Flexibility and discretion
Thrust: Collaborate
Means: Cohesion, participation,
communication, empowerment
Internal focus
and integration
Means: Adaptability, creativity,
Ends: Innovation, growth,
Thrust: Create
Ends: Morale, people
development, commitment
cutting-edge output
Thrust: Control
Means: Capable processes,
consistency, process control,
Ends: Efficiency, timeliness,
smooth, functioning
5 Market
Thrust: Compete
Means: Customer focus, productivity,
U Market share, profitability, goal
External focus and
Stability and control
figure 8.2
Adapted from K. S. Cameron, R. E. Quinn, J. Degraff, and A.V. Thakor, Competing Values Leadership (Northampton, MA: Edward
Elgar, 2006), p. 32.
1. Clan Culture: An Employee-Focused Culture Valuing Flexibility, Not
Stability A clan culture has an internal focus and values flexibility rather than
stability and control. Like a family-type organization, it encourages collaboration
among employees, striving to encourage cohesion through consensus and job satisfaction
Organizational Culture, Structure, & Design

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11:54 AM user-f502
and to increase commitment through employee involvement. Clan organizations devote considerable resources to hiring and developing their employees, and they view
customers as partners. Southwest Airlines is a good example of a company with a clan
culture. So is online shoe seller Zappos, which encourages managers to spend 10%–20%
of their off-work hours with employees.10
2. Adhocracy Culture: A Risk-Taking Culture Valuing Flexibility An adhocracy culture has an external focus and values flexibility. This type of culture
attempts to create innovative products by being adaptable, creative, and quick to
respond to changes in the marketplace. Employees are encouraged to take risks and
experiment with new ways of getting things done. Adhocracy cultures are well suited
for startup companies, those in industries undergoing constant change, and those in
mature industries that are in need of innovation to enhance growth. W. L. Gore is an
example of a company with an adhocracy culture. So is Google, which urges engineers to spend 20% of their time on personal projects.11
3. Market Culture: A Competitive Culture Valuing Profits Over Employee
I has a strong external focus and values stability
Satisfaction A market culture
and control. Because market cultures
are focused on the external environment and
driven by competition and a strong desire to deliver results, customers, productivity, and
D development and satisfaction. Employees are exprofits take precedence over employee
pected to work hard, react fast, and
L deliver quality work on time; those who deliver results are rewarded. Kia Motors, which fires executives who don’t meet their sales goals,
is an example of a company withE
a very aggressive and competitive market culture.12
4. Hierarchy Culture: A Structured Culture Valuing Stability & Effec, has an internal focus and values stability and
tiveness A hierarchy culture
control over flexibility. Companies with this kind of culture are apt to have a formalized, structured work environment aimed at achieving effectiveness through a variety
S efficiency, timeliness, and reliability in the creof control mechanisms that measure
ation and delivery of products. A
General Motors has been an example of a company
with a hierarchical structure. So also is UPS, the delivery company.13
The Corporate Cultures of Pfizer Pharmaceuticals:
The Different “Personalities”
Within an Organization
Organizational cultures are nearly as varied as human
9 every major drug company has in recent years
personalities. And often cultures may vary within the
been accused of giving kickbacks to doctors or shortB
same company—or may vary over time—with, say, the
changing federal programs.
cultural values of the sales and marketing department being quite different from those of the research and development department. Do you recognize the types of
organizational cultures in the following?
$2.3 Billion in Fines. Connecticut-based Pfizer Inc.
was fined $2.3 billion in 2009 for improperly marketing
drugs to doctors. “The whole culture of Pfizer is driven
by sales,” said a former sales representative whose complaint helped the government’s case, “and if you didn’t
sell drugs illegally, you were not seen as a team player.”14

Free Prescription Drugs to Unemployed. But also
in that year, as unemployment hovered around 10% in the
United States, Pfizer launched a program in which it offered to supply 70 of its name-brand drugs, such as Lipitor
and Viagra, free of charge for up to a year to customers
who had lost their jobs and lacked prescription coverage.
“We did it because it was the right thing to do,” said
Pfizer CEO Jeffrey Kindler. “But it was motivational for
our employees and got a great response from customers.
In the long run, it will help our business.”15
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Ongoing Experimentation. At Pfizer, drug discovery
is a high-risk, costly endeavor in which hundreds of scientists screen thousands of chemicals against specific disease
targets, but 96% of these compounds are ultimately found
to be unworkable. The culture, then, is one of managing
failure and disappointment, of helping drug researchers live
for the small victories. Thus, says one account, “when a
researcher publishes a paper, or when a lab gets some
positive results on a new therapy, it’s trumpeted throughout the organization.”16 Another example of experimentation, aimed at helping remaining employees to be
productive after heavy job cuts, is PfizerWorks, in which
4,000 employees pass off tedious and time-consuming
parts of their jobs, such as creating PowerPoint slides and
riffling through spreadsheets, to outsiders in India.17
The preceding are examples of market, clan, and adhocracy cultures, in that order.
Not all cultures work well. For instance, some Wall Street
firms, such as Citigroup Inc., are reported to have such a
strong perform-or-die culture—in which executives are
pushed to maximize profits and are quickly fired if they
fail to deliver—that it is difficult to find talent to promote
from within when chief executives leave.18 Sometimes a
company will do a corporate overhaul in an attempt to
improve its performance, but the actual results may turn
out otherwise. This reportedly happened with Intel, the
Santa Clara, California, computer chip giant, which cut its
workforce in 2006, letting go many managers skilled at
people development. In the aftermath, employees complained that Intel lost what made it such a celebrated place
to work, including being “a place that prizes fresh ideas,
frank talk, and employee engagement.”19 What kinds of
cultures would these seem to be?
The Three Levels of Organizational
E Culture
Organizational culture appears as three layers: (1) observable artifacts, (2) espoused
values, and (3) basic assumptions.20 Each level varies in terms of outward visibility
, level.
and resistance to change, and each level influences another
Level 1: Observable Artifacts—Physical Manifestations of Culture At
the most visible level, organizational culture is expressed
S in observable artifacts—
physical manifestations such as manner of dress, awards, myths and stories about the
company, rituals and ceremonies, and decorations, asA
well as visible behavior exhibited by managers and employees. Department store retailer
R J. C. Penney Co. has tried
to revamp itself from a traditional, hierarchical culture into one that is more informal
and flexible by, for example, allowing such observable artifacts as business-casual
dress on weekdays and jeans on Fridays.21
Level 2: Espoused Values—Explicitly Stated Values
& Norms Espoused
values are the explicitly stated values and norms preferred
by an organization, as
may be put forth by the firm’s founder or top managers. For example, the founders of
1 Way,” a collegial, egalitarian
technology company Hewlett-Packard stressed the “HP
culture that gave as much authority and job security9to employees as possible. Although managers may hope the values they espouse will directly influence employee
behavior, employees don’t always “walk the talk,” frequently
being more influenced
by enacted values, which represent the values and norms
exhibited in the
organization. Thus, for example, an international corporation hung signs throughout
the hallways of its headquarters proclaiming that “trust” was one of its driving principles (espoused value), yet had a policy of searching employees’ belongings each time
they entered or exited the building (enacted value).22
HP founders. David Packard,
left, and William Hewlett
created a close-knit
organizational culture that
gave a lot of responsibility
to employees and fostered
innovation within the
company. What kind of
culture is that?
Level 3: Basic Assumptions—Core Values of the Organization Basic assumptions, which are not observable, represent the core beliefs that employees have
about their organization—those that are taken for granted and, as a result, are difficult
to change. Example: At insurance giant AIG, people worked so hard that the joke
around the offices was “Thank heavens it’s Friday, because that means there are only
two more working days until Monday.”23 Another example: When Peter Swinburn took
over in 2008 as CEO of Molson Coors, headquartered jointly in Denver and Montreal,
Organizational Culture, Structure, & Design

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the company had grown into one of the world’s largest breweries through a process of
10 acquisitions and joint ventures during the preceding decade. “Th …
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