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AN INTRODUCTION TO DIFFERENTIATED LEARNING TOOLS
Participants in flexible learning programs have limitations on the nature of the
time they can spend on learning. Typically they are employed fully or partially,
pursuing higher studies or have other social and familial responsibilities.
Availability of time is a great constraint to these students.
To aidthe participants,we have developedfour unique learningtools as below:
 Bullet Notes : Helps in introducing the important concepts in each unit
of curriculum, equip the
student during preparation of
examinations and
 Case Studies : Illustrate the concepts through real life experiences

 Workbook : Helps absorption of learning through questions based on reallife nuggets
 PEP Notes :Sharing notes of practices and experiences in the Industry will help the student to
rightly perceive and get inspired to learn concepts at the cutting edge
application level.placementinterviews
Why are these needed?
 Adults learn differently from B. School or college going
students who spend long hours at campus.
 Enhancing analytical skills through application related learning
kits trigger experiential learning
 Availability of time is a challenge.
 Career success increasingly depends on continuous learning
and success
What makes it relevant?

How is it useful?


Where does this lead to?
As and when you get 5 to 10 minutes you can read one of these and absorb and comprehend.
Spending more time is your choice.
You can use the time in travel, waiting for meetings, lunch time, small breaks or at home
usefully.
Through these tools, the learning bytes are right sized for ease of learning for time challenged
participants.
The content starts from practice and connect to precept making it easy to connect to industry
and retain.
They can be connectedto continuous assessment process of the academic program.
Practitioners can use their real life knowledge and skill to enhance learning skills.
Immediate visualization of the practical dimension of the concept will offer a rich learning
experience.
 Easier to move ahead in the learning process.

 Will facilitate the student to complete the program earlier than
otherwise.Helpsstay motivated and connected.
When is it useful?

Case Studies:
Organizational Behavior
© The ICFAI Foundation for Higher Education (IFHE),
Hyderabad, March, 2015. All rights reserved
No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or
transmitted in any form or by any means – electronic, mechanical, photocopying or otherwise – without
prior permission in writing from The ICFAI Foundation for Higher Education (IFHE), Hyderabad.
Ref. No. OB-CS-IFHE – 032015
For any clarification regarding this book, the students may please write to The ICFAI Foundation for
Higher Education (IFHE), Hyderabad giving the above reference number of this book specifying chapter
and page number.
While every possible care has been taken in type-setting and printing this book, The ICFAI Foundation
for Higher Education (IFHE), Hyderabad welcomes suggestions from students for improvement in future
editions.
ii
CONTENTS
1 Honeywell‟s Globalization Challenge in High-Growth Markets 5
2 The Secret Ingredient Behind German Worker‟s High Organizational Performance 6
3 METRO Cash & Carry 8
4 Diversity at IBM 9
5 Honda: Communicating the „Waigaya‟ Way 10
6 Adapting to Cultural Change the Michelin Way 12
7 Can Pooja Jain Micromanage Luxor with her Personality Traits? 13
8 Kailash Satyarthi : A Story of Motivation 15
9 Kiran Mazumdar-Shaw: Changing Perceptions about Women as Entrepreneurs in India 16
10 KV Kamath Used Learning as a Tool to Transform ICICI Bank 18
11 A Case of Employee Protection: The Pixar Story 20
12 The Best Office Perk From WordPress 21
13 Walmart‟s NewDress Code:Triggering Employee Conflict? 22
14 Google Could Upshoot Innovation through Group Formation 23
15 Team Building: Menlo Innovations‟ Formula for Success 25
16 Elements of Informal Organization at Google 27
17 Holacracy @ Zappos 29
18 The Decision Rationality behind Appointing Shikha Sharma @ Axis Bank 31
19 The Power Games @ BCCI 33
20 General Motors: Inculcating a New Organizational Culture 35
21 The Ignition Switch Recall Crisis: Lessons for General Motors 36
22 Reviewing Consultants through Survey Feedback 37
23 Swachh Bharat Abhiyan: A Case of Sensitivity Training 39
24 Roca Inc.: The Story of „People-Oriented‟ Approach to Organizational Development 40
iii
Introduction to the Case Study
Participants in ICFAI University Programs are eager to apply theory into practice. They realize that
application orientation can enhance their learning and subsequent usage of management precepts and
practices. Picking out the principle behind real world events is critical to this learning.
To fulfill this objective the institution has introduced the Case Study methodology as a learning tool. A
one page case is developed for learning a concept/topic from an illustration of a real world occurrence.
The case illustrates a situation pertinent to an individual/a company/an industry or an economy in relation
to a concept or issue covered in the curriculum. The illustration is specific to the point being discussed.
The case depicts the knowledge which can be applied as illustrated in the practice of the real world.
These experiences can be distilled to look at a core principle at play by the participant. While there could
be multiple principles at play, the illustration of each case helps in its better understanding of the concept
at a very fundamental level.
The learning outcomes expected are:
1. Real world is illustrated and connected back to one concept/topic for better theoretical
understanding.
2. Application based approach, which significantly enhances absorption and retention.
3. Exposure to specific business situations and developments improves perspective.
It may be used for Assessment
iv
1
Honeywell‟s Globalization Challenge in
High-Growth Markets
Honeywell International, Inc. a multinational conglomerate headquartered at Morris Township, New
Jersey was incorporated in 1927. Honeywell had a long history of over 125 years and included many
predecessor companies. Honeywell manufactured consumer and commercial products, aerospace
systems, etc. for customers including leading corporations, Governments and private consumers. A
Fortune 100 company, Honeywell had a global workforce of nearly 1, 32,000 employees in 2014.
The company had operated in international markets since 1934. Despite its global experience, Honeywell
found itself struggling in high-growth regions like China and India. In 2004, David Cote, Honeywell‟s
CEO, appointed Shane Tedjarati as the President and CEO of high growth regions, to handle the
situation. In China, Honeywell faced competition from 5 players who sold similar products. Honeywell
adopted an „East for East‟ strategy under Tedjarati‟s leadership to cope-up with this competition. This
strategy was devised to learn all aspects of running a business like sourcing, manufacturing and
marketing from its Chinese competitors. The company shifted its R&D activities to China as a part of
this strategy. It hired nearly 150 general managers in China based on its „East for East‟ strategy.
Honeywell started developing products locally in the Chinese market, a first for the company. To monitor
the impact of strategies and policies, a feedback mechanism of self assessment was undertaken
annually.It was reviewed by the CEO. Based on the China success story, a similar approach was adopted to
revive Honeywell‟s business in the Indian market in 2008. The „East for East‟ strategy was modified
to suit the requirements in India. Later the staff of both countries collaborated on product development.
China and India collectively contributed to 30% of the company‟s growth by 2011.
It was not feasible to adopt the „East for East‟ approach in smaller emerging nations like Vietnam.
Tedjarati createda „go-to-market‟ strategy basedon local market requirements. A teamof 3 to 5 people
comprising of a senior business manager, an expert in government relations and a marketing executive
along with a couple ofjunioremployees,was constitutedin thesecountries which helpedin nurturingbusiness
partnerships and cross-business cooperation. This team wouldrepresent Honeywell‟s business
in each of these nations. Honeywell deployed this successful strategy to its businesses worldwide in
2012. In 2014, most of the country managers at Honeywell were hired from within the organization.
China, Honeywell‟s largest market outside U.S., served as the platform for all its globalization efforts.
Business strategies for global markets must be designed in accordance with the demands of the local
markets. The case of Honeywell illustrated ‘creation of a global village’.Organizations could
succeed in new markets by adopting a flexible approach and tweaking its style of operations to meet
the local requirements.
Discussion Questions
1. Why should companies alter their strategies in the global market?
(Hints: cope with local competition-understand demands of the local market-suit local requirements)
2. Compare „East for East‟ and „Go-to-Market‟ strategies. How did these strategies help to cope
with the globalization challenge?
(Hints: producing products locally-hiring local talent-helped nurture business partnership)
Course Reference: Concept- Creation of Global Village/Unit 1-Understanding Organizational Behavior/Subject-
Organizational Behavior
Sources:
i. Claire Jin, “HoneywellNames Shane Tedjarati President, High Growth Regions and Stephen Shang President,
Honeywell China,” Press Releases, www.honeywell.com, January 01, 2012.
ii. Luc Minguet, Educardo Caride , Takeo Yamaguchi, and Shane Tedjarati, “Shifting the Focus to Emerging
Markets,” Harvard Business Review, September, 2014.
iii. Sudipto Dey, “We Don‟t Want to Turn India into an Outsourcing Hub,” Business Standard, February 08, 2014.
iv. “Coming of Age: Asia‟s Evolving R&D Economist Intelligence Unit, TheEconomist, August 2012.
OtherKeywords: HRM
5
2
The Secret Ingredient Behind German
Worker‟s High Organizational Performance
Germany, a developed nation,consisted of16states andhad a population ofabout 80million in 2014. Berlin
was the country‟s largestcityand alsoits capital. German employees worked foran average of35
hours per week and were granted about 24 paid vacation days per annum. Germany fostered a work
culture aimed at increasing employees‟ productivity (Refer to Chart 1 for German‟s Focus on
Productivity).
Chart 1: German‟s Focus on Productivity

The 'German' Work Culture

Benefits to Employees
'Intense Focus': Working hours Balance between work and

were strictly devoted to work

personal life
Frivolous activities like Facebook, 'Work Hard & Play Hard'
Increasedchecking private emails, indulging
Employees did not Employee
in office gossip was socially spend time togetherafter Productivity &unacceptable. Zero Tolerance work hours
Highertowards such unproductive
+

=

activities Employees
clubs
were Organizational
A culture of Direct
involved in like Performance

sports and music
Communication was encouraged.
Higher number of paidWorkers spoke directly with their
superiors on all matters including holidays allowed employees
to enjoy up to a month offperformance review without using
with their familiesicebreakers
Adapted from Amol Sarva, and Eryn Paul, “WhyGermans Work Fewer Hours But Produce More: A Study in
Culture,” The Huffington Post, November 11, 2014
German workers differed in their work culture compared to their US counterparts (Refer to Chart 2 for
contrast between German and US Employee).
Chart 2: German Employee Vs. US Employee
German Employee US Employee
Their language was commanding and devoid US employees used polite phrases in their official
of polite phrases. communication.
For instance,“I need this report by 10.00 am‟ For instance, “It would be great if you could get
that report done by 4.00 pm”
To counterthe accessibility offered by smart US employees were always connected to their work
phones,the Government proposed to impose due to the accessibility offered by technological
ban on 'work related emails' post 6.00 pm devices like smart phones
Both parents could take paternal leave together US employees did not enjoy a similar benefit
for the complete or partial granted period
(maximum of 3 years each per child)
Adapted from Amol Sarva and Eryn Paul, “Why Germans Work Fewer Hours But Produce More: A Study in
Culture,” The Huffington Post, November 11, 2014
 The fourth largest economy in the world by nominal GDP in 2014

 The third largest importer and exporter of goods in the world in 2014

 The country single-handedly pulledthe Eurozone‟s economy from the brink of recession in2012
ThehighperformanceofGermanshadmadethecountry:

6
‘Organizational Performance’ referred to the actual output or results delivered by an employee,
team, department, etc. compared to the intended or desired output. German employees spent relatively
lesser number of hours at work. But their productivity was relatively higher in comparison to their
counterparts in other countries. Their culture of single-minded focus on work, goal oriented
communication and intolerance towards unproductive activities had contributed significantly in
increasing organizational productivity.
Discussion Questions
1. Discuss the role of culture in improving organizational performance.
(Hints: creates work-life balance-encourages new hobbies-increased productivity)
2. Distinguish between German and American work culture.
(Hints: communication style-fixed working hours-greateremployee benefits)
Course Reference: Concept-OrganizationalPerformance/ Unit 2-Foundations of Human Relations and
Organizational Behavior/ Subject-Organizational Behavior
Sources:
i. Amol Sarva, and Eryn Paul, “Why Germans Work Fewer Hours But Produce More: A Study in Culture,”
The Huffington Post, November 11, 2014.
ii. C.W and A.J.K.D., “Working Hours: Get a Life,” The Economist, September 24, 2013.
iii. Gabi Thesing, Jana Randow and Aaron Kirchfeld, “Germany‟s Growth: New Rules, Old Companies,”
BloombergBusinessweek, September 30, 2010.
OtherKeywords: HRM
7
3 METRO Cash & Carry
Metro Cash & Carry‟s (METRO) success story began in 1964. METRO‟s wholesale store offered
professional customers (like hotel and restaurant operators and catering firms, etc.) and bulk consumers
the chance to pick out their own goods and take them away themselves. The company allowed its
customers the luxury of selecting items under a single roof.
METRO positioned itself as a B2B wholesaler. It catered to the needs of its small and midsize enterprises
by offering them a wide range of customized products and services. It adopted the cash-and-carry
approach reflecting the company‟s model of bulk buying and self-service. METRO had slowly yet
steadily grown its presence across the globe.
In 2003, it entered the Indian market with its first wholesale store in Bangalore (Karnataka). The market
had poor transportation facility and a reluctance to embrace the cash only model, where customers were
expected to pay for their purchase only in cash. Indian customers were used to informal sources of credit.
They did not find the company‟s model of strictly paying by cash appealing. They also found
transporting bulk purchases difficult on account of poor transportation facilities. These constraints
challenged METRO‟s business model.
The company took time to grasp this challenge and continued to stick to its original operating model.
Consecutive years of bad business and four CEOs later, it realized that its conventional approach was
failing. Understanding the context of the Indian market, METRO altered its payment and delivery model.
In addition to its conventional cash-and-carry option, the company also offered the following new
alternatives for its Indian customers:
a. Credit and carry (No cash and carry)
b. Cash and delivery (Cash and no carry)
c. Credit and delivery (No cash and no carry)
The remodelling and renewed efforts paid off. It clocked €670 mn as revenue in2010. METRO geared to
expand from seven outlets in 2014 to about 50 by 2020.
Organizations were required to learn when faced with adversity. They could experiment with their
business models, policies, schemes, products or services. The case of METRO illustrated ‘situated
learning and associative learning’. The learning could help them in new markets.
DiscussionQuestions
1. Discuss the challenges faced by companies in the international market.
(Hints: infrastructural challenges-understanding customermindset and preferences- difference in
customer expectations)
2. What strategies did Metro adopt to succeed in the Indian market?
(Hints: changed the traditionalist approach-changed delivery model-offered new payment options)
Course Reference: Concept-Learning / Unit 3-Understanding Peopleand Organizations / Subject-Organizational
Behavior
Sources:
i. Antonita Madonna and Mahesh Kulkarni, “Metro Cash & Carry Revamps India Strategy,” October 24, 2013.
ii. Suneera Tandon, “Metro to Add 50 WholesaleStores by 2020 in India,” Livemint, May 5, 2014.
iii. “German Retailer Metro AG Plans to Have 50 Wholesale Stores in India by 2020,” The Economic Times, May
6, 2014.
OtherKeywords: Global HRM
8
4 Diversity at IBM
The International Business Machines Corporation, well-known as IBM, a US multinational technology
and consulting firm, headquartered in New York was incorporated in 1911 under the name Computing -
Tabulating-Recording Company. The name IBM was adopted in 1924. The company was one of the
largest technology firms worldwide in 2014.
IBM had been a leader in workplace diversity. Decisions like hiring, employee compensation etc. were
made without a bias towards gender, sexual orientation, color, etc.
 The first training session was conducted for women employees in 1935.
 It was the first organization to offer „domestic partner benefits‟ for its lesbian, gay, bisexual
and transgender (LGBT) employees. The company published its first policy letter on equal
opportunity in 1953.

 IBM held its first LGBT global leadership conventions in 2000 and 2001.

 The company supported the Employment Non-Discrimination Action in 2002. In the same year,
Sandra K. Johnson became first black female member of IBM Academy.
 IBM was the first company to implement the Genetic Information Nondiscrimination Act in 2005.
The Act prohibited employers from using an individual‟s genetic information.

 To bridge the differences in thought among diverse cultures and generations,the company
introduced a concept named „Diversity of Thought‟ in 2010.
 IBM introduced its Global Accessibility Center to make technology more accessible to employees
with disabilities.

 IBM had launched several programs worldwide with the aim of employing greater number of
women. For instance, in India IBM launched a „Bring Her Back‟ campaign in 2011 with the
aim of re-employing young mothers, women who had taken a break on personal grounds and those
who had been ona sabbatical.IBM‟sdiversityinitiatives included the following:
In 2014, IBM was ranked 2nd in DiversityInc‟s Top 10 Companies for Global Diversity. DiversityInc
was an online magazine that offered news on the role of companies in strengthening diversity. In 2014,
IBM followed an approach named Diversity 3.01 to ensure that the culture of diversity was uniformly
adopted at all IBM offices globally.
The case of IBM illustrated ‘organizational approaches of managing diversity’. Instead of
overlooking differences, organizations should work towards understanding diversity. Organizations
could reap benefits by fostering a culture which embraced diversity.
DiscussionQuestions
1. Discuss the various ways of inculcating a culture of diversity in organizations.
(Hints: hiring women and individuals from the LGBT community, etc.-adopting non-discrimination
policies- introducing diversity promoting programs)
2. How did focusing on diversity contribute to IBM‟s success?
(Hints: high ranking in the Global Diversity survey-one of the largest technology firms worldwide)
Course Reference: Concept-Individualand Organizational Approaches to Managing Diversity/ Unit 4-Diversity and
Ethics/ Subject-Organizational Behavior
Source:
i. Glenn Llopis, “Diversity Management is the Key to Growth: Make it Authentic,” Forbes, November 6, 2011.
ii. N Shivapriya,“IBM on a Drive to Hire MoreWomen in India,” TheEconomic Times, May 21, 2012.
iii. “Employee Diversity,” CorporateResponsibility Report, 2010.
OtherKeywords: Global HRM, International Business, Organization Development, Leadership and Change
1 Diversity 3.0 is the term used to denote IBM‟s latest diversity policy. Theobjective of Diversity 3.0 is to
make the best use of employee diversity for innovation.
9
5 Honda: Communicating the „Waigaya‟ Way
Honda Motor Company Ltd., a Japanese multinational automobile, power equipment and motorcycles
manufacturer was founded in 1948 by Soichiro Honda and was headquartered at Minato, Japan. In 2014,
Honda recorded a revenue of about USD 120 billion and had a global workforce of about 200,000
employees.
At Honda, decisions were made using an impromptu and agenda-free communication technique popularly
known as „Waigaya‟. Waigaya was a Honda coinage to symbolize the noise generated by the
jabbering and heated discussion of a number of people (Refer to Chart 1 for the Waigaya Process @
Honda).
Chart 1: The „Waigaya‟ Process @ Honda
Adapted from Jeffrey Rothfeder, “For Honda, Waigaya Is the Way,” strategy-business.com, August 1, 2014
Honda widely resorted to Waigaya to resolve product related problems. For instance, Waigaya was
instrumental in designing Honda‟s thirdgeneration „Acura TL‟, a midsizedluxury sedan launchedin
1995. A decade later,Acura TLstarted losingits sheen.It was viewed as stuffy and old-fashioned due to its
„boxy‟ design. A team of ten participated in the Waigaya which lasted for months. At the end of this
process, TL was re-styled as „The Ultimate Athlete‟. Despite these advantages, experts had voiced their
concern over Waigaya‟s effectiveness as an organization-wide communication medium(Refer to Chart 2
for the advantages and disadvantages ofWaigaya).
Chart 2: Advantages Vs. Disadvantages ofWaigaya
“Advantages” “Disadvantages”
Encouraged open-communication „Waigaya‟ dids not result in any value
Encouraged fearless defense/challenging of addition more than half the time, thereby,
leading to waste of resources and time
ideas
   Absence of a structure and agenda made it aAn idea was accepted solely on its „MERIT‟ .
Factors like hierarchy and designation held

less productive process
Lacked the „leadership‟ element necessary

no relevance.
Served as a catalyst for innovation for creating strong results
Aided unbiased decision-making
Adapted from various sources
At Honda, Waigaya had offered a platform for open ‘communication’ among employees irrespective
of their designations. These uninhibited discussions had helped Honda resolve numerous problems
ranging from product styling to growth-related issues.
Discussion Questions
1. Discuss the importance of communication in organizations.
(Hints: platform to discuss problems/facts/opinions,etc.-work out feasible solutions-encourage
innovation)
10
2. What were the advantages and disadvantages ofadopting Waigaya as a way of organization wide
communication method?
(Hints: helps in unbiased decision-making-productivity issues-absence of clear leadership)
Course Reference: Concept-Communication/ Unit 5-Managing Communication/ Subject-Organizational Behavior
Sources:
i. Jeffrey Rothfeder, “5 Brilliant Strategies That Make Honda One of the World‟s Most Innovative Companies,”
BusinessInsider, July 29, 2014.
ii. Jeffrey Rothfeder, “For Honda, Waigaya Is the Way,” strategy-business.com, August 1, 2014.
iii. Karen Lowry, Larry Armstrong and David Woodruff , “A Car is Born,” Bloomberg Businessweek, September
12, 1993.
OtherKeywords: Global HRM, HRM
11
6 Adapting to Cultural Change the Michelin Way
Michelin, a leading manufacturer of tyres and other rubber products with its headquarters at Clermont -
Ferrand, France was established on May 28, 1888 by Michelin brothers, Andre and Edourad. Michelin
was initially involved in the manufacture of tyres for bicycles and horse-drawn carriages. In the 1890s,
the company introduced pneumatic tyres for automobiles. Michelin set-up its first plant outside France in
Turin (Italy) in 1906. In 2014, the company had about 72 production facilities across 19 countries with
nearly 111,200 employees of 120 different nationalities across the globe. The company adopted different
strategies in order to cope-up with cultural changes worldwide. For instance, in 2001, Michelin entered a
joint venture with China‟s Shanghai Tyre and Rubber Company.
Michelin‟s headoffice at France was keen on adopting its „Management System of Daily Production‟
(MDP) in China. Chinese employees, in general, and the production line workers, in particular, lacked
faith in Michelin‟s management team. Soon, cultural disparities between the local employees in China
and the expatriates started surfacing. This resulted in high reject rates of its tyres and a high turnover of
the production line employees.
Michelin introduced a cultural integration program, giving the Chinese team members adequate time to
understand and learn the Michelin culture. Overseas studies were also offered as a part of this integration
program. By end of 2010, the tyre‟s reject rate dropped by 32% and turnover of production line staff
dropped by 44%.
Similarly, when Luc Minguet, took over as the COO of Michelin‟s U.S. truck business in 2002, his
candid management style was not well received by his colleagues in the US. Minguet‟s approach of
giving candid feedbacks, focusing only on the performance drawbacks, was not welcomed by his
American colleagues. His earlier experiences in the international market, including 7 years in the UK and 3
years in Spain, did not help. Guidance from an „executive coach‟ specializing in cultural issues helped
Minguet develop a culturally sensitive approach.
Managers at Michelin underwent training in order to understand the cultural norms and expectations of
employees worldwide. In 2014, the managers at Michelin were offered cultural training even if they
moved to seemingly similar countries. For instance, when Michelin decided to enter Mexico, its Mexican
and American managers were offered cultural training together. This allowed them to share their
experiences and strengthened their inter-personal bonds.
Developing a culturally sensitive culture called for significant time investment. But Michelin reaped
benefits like employees‟ trust and strong inter-personal relations with its workers.
Companies must sensitize themselves and their managers to the diverse cultural norms before setting
up operations in new markets. The case of Michelin illustrated ‘cultural adaptation and overcoming
barriers to cultural adaptation’. Cultural training could be critical for companies that aspired to
succeed on the global business platform.
Discussion Questions
1. What reasons contribute towards cultural disparities between local employers and expatriates?
(Hints: lack of faith in the new management-lack of cultural awareness and understanding)
2. Explain how managers at Michelin benefitted by adapting to the cultural difference?
(Hints: training to develop cultural sensitivity-training from executive coaches specialized in
cultural issues)
Course Reference: Concept- CulturalAdaptation/Unit 6-International Organizational Behavior / Subject-
Organizational Behavior
Sources:
i. Erin Meyer and Sapna Gupta, “Leading Across Cultures at Michelin (A), INSEAD, 2009.
ii. Jean Lee, Jenny Zhu, Jane Xieand Rebecca Chung, “Michelin Overcame Cultural Gulf at Shanghai Joint
Venture,” Financial Times, July29, 2013.
iii. Karel Cool, “The Competitiveness Challengeof European Manufacturers: The Case of Michelin,” INSEAD
Blogs, November 7, 2012.
iv. Luc Minguet, Eduardo Caride, Takeo Yamaguchi and Shane Tedjarati, “Voices from the Front Lines,”
Harvard Business Review, September 2014.
OtherKeywords: Global HRM, HRM
12
7
Can Pooja Jain Micromanage Luxor with her
Personality Traits?
The Luxor Group, a family-run, manufacturer and marketer of pens and writing instruments in India, was
founded by Davinder Kumar Jain (D K Jain) in 1963. In 2008, the company began diversifying into
sectors like hospitality, real estate and retail. In 2014, the company had started eyeing the fast-moving
consumer goods (FMCG) sector. Luxor exported to nearly 85 nations worldwide and had a workforce of
about 2500 employees in 2014.
Pooja Jain (Pooja), daughter of DK Jain and head of Luxor‟s writing instruments‟ business, steppedin
as the Executive Director of the Group after her father‟s demise in 2014 (Refer to Chart 1 for personality
traits of Pooja).
Chart 1: Pooja Jain‟s Personality Traits
Adapted from Shabana Hussain, “Pooja Jain is Rewriting Luxor‟s Future,” Forbes India, September 2, 2014
Pooja preferred to micromanage all elements of Luxor‟s business, contrary to her father‟s participatory
approach. Company veterans were apprehensive whether Pooja would be able to shoulder the mantle of
the Luxor Group with her personality traits (Refer to Chart 2 for apprehensions about Pooja‟s
Leadership).
Chart 2: Apprehensions Surrounding Pooja‟s Leadership
Apprehensions Indicators
Rushing in to Worked 24X7
prove her worth Called employees at odd hours including on weekends. For instance,
employees received calls at 1 a.m. to brainstorm new ideas or general
business.
Over-ambitious  Had set a goal of Rs.2, 000 crores for the writing instruments‟ business alone.
goals Expected a 4 times revenue increment within 3 years. However, the industry
growth rate had dropped to 5% p.a. in 2014 from 10% p.a. in 2009 which
would make this a challenging feat
Adapted from Shabana Hussain, “Pooja Jain is Rewriting Luxor‟s Future,” Forbes India, September 2, 2014
Pooja Jain had used her „personality traits’ like conscientiousness and result-oriented approach to
manage Luxor after her father‟s sudden demise. An individual‟s personality could have a positive
or negative impact on an organization‟s performance. Luxor‟s new Executive Director could play
a major role in determining the company‟s fortune.
Discussion Questions
1. What personality traits should a business leader display?
(Hints: analytical skills-conscientiousness-goal oriented)
13
2. What apprehensions surrounded Pooja Jain‟s ability to lead the Luxor Group?
(Hints: haste to prove worthiness-over-ambitious Goals)
Course Reference: Concept-Meaningof Personality/Unit 7-Personality and Attitudes/Subject-Organizational
Behavior
Sources:
i. Purvi Malhotra, “Beauty on the Go,” India Today, November 7, 2008.
ii. Shabana Hussain, “Pooja Jain is Rewriting Luxor‟s Future,” Forbes India, September 2, 2014.
iii. “Luxor to Diversify its Biz: Foray in Other Consumer Segments,” TheEconomic Times, May 23, 2008.
OtherKeywords: HRM, Leadership and Change Management
14
8 Kailash Satyarthi : A Story of Motivation
Kailash Satyarthi, born in 1954, was an Indian activist dedicated to the cause of protecting children‟s
rights. Satyarthi held a degree in electrical engineering. In 1980, he gave up his job as an engineering
lecturer and founded „Bachpan Bachao Andolan‟ (BBA), a non-profit organization. By 2014, under
Satyarthi‟s leadership, BBA had rescued more than 80,000 children from the clutches of child labor
across 144 nations worldwide (Refer to Chart 1 for BBA‟s Initiatives).
Chart 1: BBA‟s Initiatives
BBA was the first civil society campaign against child exploitation in India.
It adopted a „raid and rescue‟ approach where the police and BBA activists together raided
factories involved in child labor
BBA introduced its „Bal Mitra Gram‟ (BMG) program to rescue children from child labor and
enroll them into schools.
O There were more than 100 BMGs across India by 2014
O BMG program had made about 365 villages as children friendly across 11 Indian states by 2014
Adapted from Harriet Alexander and Dean Nelson, “Nobel Peace Prize: Who Is Kailash Satyarthi?,” The
Telegraph, October 10, 2014
Even as a young child, Satyarthi was disturbed by the state of those kids who had to work while he
attended school. This motivated him to start a football club to pay the school fees of underprivileged
children and to start a book bank. In 1994, Satyarthi founded Rugmark, later known as GoodWeave
International, a network of non-profit companies, dedicated towards putting an end to child labor in the
rug manufacturing industry. He led the „Global March Against Child Labor‟ across 103 nations in
January 1998. This was a global event uniting NGOs, trade unions, etc. in their fight against child labor.
Over his 30 years long crusade against child labor, Satyarthi encountered numerous perils including
break-ins and threats to self and family members. For instance, in 2004, Satyarthi and his fellow activists
were brutally attacked while trying to rescue trafficked Nepalese girls from an Indian circus. Despite
being injured, Satyarthi continued his protest by going on a hunger strike. His efforts persisted till all the
girls were rescued.
Satyarthi had received many awards for his persistent efforts including the Aachener International Peace
Award (1994), Robert F. Kennedy Human Rights Award (1995) and the Medal of Italian Senate (2007).
On October 10, 2014, Satyarthi was jointly awarded the Nobel Peace Prize along with Malala Yousafzai
for his relentless efforts towards liberating children from suppression.
The case of Kailash Satyarthi illustrated the concept ‘achievement motive’, where a person desired to
perform excellently to handle complex situations.Here Satyarthi relentlessly worked to liberate
children from child labor. Satyarthi‟smotivationto protect children‟s rights won him numerous
awards including the Nobel Peace Prize in 2014.
Discussion Questions
1. How can an individual fulfill his achievement motive? Discuss in the light of Kailash
Satyarthi‟s accomplishments.
(Hints: motivated to start a football club to help underprivileged kids pay their schoolfees - gave up
job as an engineering lecturer to start BBA-started Rugmark with the aim of ending child labour)
2. Discuss the challenges in fulfilling a social cause like protection of children‟s rights.
(Hints: break-ins, arson attacks, etc.-physical threat)
Course Reference: Concept-Achievement Motive/Unit 8-Motivation/Subject-Organizational
Behavior Sources:
i. “KailashSatyarthi: A Profile,” Business Standard, October 10, 2014.
ii. “The Fight for Protectionof Children has to Continue,” Business Standard, December 16, 2014.
iii. Harriet Alexanderand Dean Nelson, “Nobel Peace Prize: Who Is Kailash Satyarthi?,” The
Telegraph, October 10, 2014.
Other Keywords: HRM, Leadership and Change, Organizational Development
15
9
Kiran Mazumdar-Shaw: Changing Perceptions
about Women as Entrepreneurs in India
Kiran Mazumdar-Shaw, an Indian entrepreneur, was the founder and Chairman of Biocon Limited,
India‟s largest Biopharmaceutical Company. Biocon was founded in 1978 at Bangalore. Kiran started
her professional journey as a trainee brewer at Melbourne‟s Carlton and United Breweries (Refer
Chart 1 for Kiran‟s Professional Rise).
Chart 1: Kiran‟s Rise as a Successful Woman Entrepreneur
“The Initial Years”
Kiran was encouragedby herfather,a brewer,to
study fermentation science and to undertake
training to become a brew master.
Was perceived as an unconventional field of
study and work for women
Was the only woman studying Malting and
Brewing at Ballarat College of Advanced
Education, Australia, at the time. She topped
her class.
She started her career as trainee brewer at
Melbourne.
Between 1975-1977, worked as technical
consultant and technical manager at brewery
companies in Calcutta and Baroda, respectively.
Explored new prospects in cities like Delhi and
Bangalore but was unsuccessful.
“The Birth of Biocon”
Started exploring the International market and
was offered a job in Scotland.
In a chance encounter, Kiran met Leslie
Auchincloss, founder of Biocon Biochemicals
Limited (BBL), Ireland, before she could move to
Scotland.
Leslie was searching for an Indian entrepreneurto
help set-up an Indian subsidiary.
Kiran undertookthe assignment
Worked briefly as a Trainee Manager at BBL,
Ireland, to understand and learn the business
better.
Kiran returned to India and started Biocon
Limited
Adapted from various sources
Kiran encountered perceptualbarriers as a woman entrepreneur in India (Refer to Chart 2 for the
Perceptual Barriers).
Chart 2: Perceptual Barriers and Kiran‟s Approach of Overcoming Them
Perceptual Barriers Overcoming the Perceptual Barriers
The Existence of Gender Barriers: 1. Had the family support to pursue her career in a field
1. Absence of female role model in the considered unconventional for women-
Indian corporate scenario entrepreneurship
2. Job of brew master was perceived as 2. Started Biocon in the garage of her rented home in
a „man‟s job‟ in the Indian market. Bangalore with an initial investment of INR 10,000.
The Existence of Sexism: 3. Instead of getting de-motivated, she made use of the
Women had limited opportunities and available resources like home-grown innovation.
4. Had the ability to experiment and was open towere not given adequate chances
The Credibility Challenge: change.
5. Shifted Biocon‟s focus from enzymes toGiven her young age (was 25 years when
Biopharmaceuticals in the 1990s when the companyshe started her business) banks were
decided to go global.reluctant to fund her venture.
Adapted from various sources
16
Despite these perceptual barriers against women, Kiran‟s success as a woman entrepreneurpresented
her as a role model:
1. In 2014,Kiran was appointed as a Director on Infosys‟s Board of Directors.
2. Was appointed as the Chairman of Indian Institute of Management (IIM), Bangalore, in 2014.
3. Under her leadership Biocon recorded a profit of nearly INR 4 million in 2014.
4. Forbes ranked her as the 92nd Most Powerful Woman in the world in 2014.
5. Germany‟s Kiel Institute awarded Kiran the Global Economy Prize for Business in 2014.
‘Perception’referred to the cognitive process where individuals interpreted situations based upon their
senses andstimulation.Despite the perceptualbarriers against women in the business field, Kiran emerged
successful as a woman entrepreneur and served as a role model in the Indian corporate arena.
Discussion Questions
1. What perceptual barriers did women entrepreneurs in India have to face?
(Hints: gender barriers-existence of sexism-credibility issues)
2. How did Kiran succeed as a woman entrepreneur despite the perceptual barriers against women in
corporate India?
(Hints: family support-personaldetermination-ability to experiment)
Course Reference: Concept- Perception/Unit 9-Perception/Subject-Organizational Behavior
Sources:
i. Bhakti Bapat Mathew, “Women Must Find the Strength to Soar,”www.livemint.com, May 12, 2013.
ii. “Kiran Mazumdar0Shaw Receives Award from Germany‟s Kiel Institute,”www.business-standard.com, June
24, 2014.
iii. Catherine Lee, “Biocon‟s Kiran Mazumdar-Shaw on Female Entrepreneurship in India,”
www.marketmagazine.net, May 12, 2013.
OtherKeywords: HRM, Leadership and Change Management
17
10
KV Kamath Used Learning as a Tool to Transform
ICICI Bank
ICICI Bank, a multinational banking and financial services firm based in India, was headquartered in
Mumbai. It was set-up by the Industrial Credit and Investment Corporation of India (ICICI), in 1994, as
its fully owned subsidiary. In 2002, ICICI, the parent company merged with ICICI Bank, its subsidiary
and took on the latter‟s identity. It was the largest private sector bank in India in 2014.
K.V. Kamath joined ICICI‟s Project Finance Division in 1971 as a management trainee. In 1996, Kamath
took over as the CEO and Managing Director (May 1996 till April 2009) of the Bank. Kamath used
„learning‟ as a tool to transform ICICI Bank into a global financial services and banking giant
(Refer to Chart 1 for Kamath‟s Learning and Implementation Method).
Chart 1: Kamath‟s Learning and Method of Implementation
WHAT TRIGGERED WHAT TRIGGERED THE WHAT TRIGGERED THE
THE LEARNING? LEARNING? LEARNING?
“Curiosity and the “The need for constant learning” “The realization that learning is
imporatnce of reflection”. ugly”
Kamath learnt the During a seminar in New York,
importance of „talent Kamath learnt about the concept Kamath learnt about the „90-day
development‟ from of „parking‟ while reading a rule‟ (concept designing, product
Hindustan Lever, an Indian magazine article. development, testing and take to
consumer goods company. market within 90 days).
Hindustan Lever‟s ability to On reaching London, he called the
produce an „entrepreneurial
This concept helped him learn
Mumbai office and asked the team
leader‟ every 5-10 years handling a technology project to
the art of dealing with stagnating
inspired Kamath to nurture immediately apply the 90-day
employees.
and build talent within the rule.
bank.
Employees who had stagnated
In the 6 months that followed, the
bank undertook nearly 10-12and were acting as blockages in
projects, all of which were
the bank‟s organization chain
successfully achieved using this
were parked in new spots.
rule.
The parking approach helped
create a „blockage-free‟
organizational chain at the bank.
Adapted from KV Kamath, “KV Kamath on How to Manage Change”, www.rediff.com, February 9, 2005
Kamath briefly parted ways with the bank in 1988 to join the Asian Development Bank (ABD), Manila.
 The nature and working of emerging markets.

 To handle operations on a global scale in the international market.
 New processes in the field of banking.
AtABD,Kamathlearnt:
In 1996, Kamath re-joined ICICI bank as CEO and MD. Kamath put his learning at ABD to use in the
 He initiated structural changes and created new operations at the bank
 He brought about strategic initiatives to introduce flexibility in the functioningof the bank
Indianmarket:
18
Under Kamath‟s leadership:
 ICICI bank became the first Indian financial institution to be listed in the NYSE in 1999.

 The Bank introduced ATMs in 2003.This step played a major role in boosting the Bank‟s
growth rate to about 180% in that year.

 The Bank‟s total assets grew from Rs. 21,000 crores in 1996 to Rs. 3,80,000 crores in 2009,the
year when the CEO baton was passed on to Chanda Kochhar.

 ICICI Bank became the first bank in India to go online.
KV Kamath had put his ‘learnings’ from various professional experiences to play at ICICI Bank
which helped it emerge as the largest private sector bank in India. Organizations stood a chance to
gain by displaying a willingness to learn new skills and knowledge.
Discussion Questions
1. Discuss the significance of learning in the success ofan organization.
(Hints: understand the need for new processes/structures,etc.-introduce new operations to meet
market demands)
2. What role did Kamath‟s leadership play in ICICI Bank‟s success?
(Hints: the first Indian financial institution to be listed in the NYSE-first Indian bank to go online-
significant growth in assets)
Course Reference: Concept-Significance of Learning/Unit 10-Learning/Subject-Organizational Behavior
Sources:
i. Charles Assisi, “Making a Strong Case to Live the Learned Life,” Livemint, December 17, 2014.
ii. KV Kamath, “KV Kamath on How to Manage Change”, www.rediff.com, February 9, 2005.
iii. “How KV Kamath BuiltICICI into a Global Giant”, www.rediff.com, June 9, 2007.
OtherKeywords: HRM
19
11 A Case of Employee Protection: The Pixar Story
Pixar Animation Studios (Pixar) a US based, Academy Award winning, computer animation film studio
was set-up in 1979 as a part of the computer graphic division of Lucasfilm Ltd. to develop imaging
technology and its own imaging computers.
Pixar had brought to life many notable animated feature and short films. The company had produced a
continuous streak of hit films (The Incredibles, Cars, etc.) and revived the art of animation in the movie
industry. By 2014, Pixar was a multibillion dollar company and one of the leading producers of animated
films worldwide.
But Pixar‟s initial years were far from successful. In 1985 the company, then known as the Computer
division of Lucasfilm, was surrounded by financial troubles. George Lucas (Lucas), the founder, was
uncertain about the financial worth of computer animated movies and recruited Dough Norby (Norby) as
President to deal with the situation.
Norby decided to bring about layoffs across the division. Ed Catmull and Alvy Ray Smith, leaders of the
computer division, were advised to choose the names of employees to be laid off. Both these leaders kept
stalling the matter. Catmull suggested that sacking employees would diminish the value of the computer
division which could be profitably sold-off instead.
Norby was determined to see the layoff through. Catmull and Smith were finally ordered to come up with
a list of employee names. Both these leaders agreed upon two names – Ed Catmull and Alvy Ray Smith.
Then the management decided not to fire any of the employees. The bold steps taken by the leaders to
protect the welfare of employees were highly appreciated.
Subsequently, in 1986, the computer division of Lucasfilm was bought by Steve Jobs for $5millions and
named Pixar. His idea was to build it into a computer company. The passion of animators of the erstwhile
computer division made Pixar into an animation powerhouse.
The success of Toy Story in 1995 marked the beginning of Pixar‟s promising future. Subsequently,
12 feature films by the company generated nearly $7.2 billion globally. In 2006, Pixar was bought by
The Walt Disney Company for $7.4 billion and Catmull was named the President.
Businessleadersmust be empathetic towards the needs andwelfare oftheir employees.The case of Pixar
illustrated „leadershipand leadershipskills’.It was not possible forleaders to be truly effective
and efficient unless they focused on honing their human skills.
DiscussionQuestions
1. Discuss the measures taken by Pixar leaders Catmull and Smith, to protect their employees.
(Hints: suggestion to sell the computer division instead of firing employees- offering to sacrifice
their own jobs to save the jobs of their team members)
2. Discuss the role of human skills in creating effective leaders.
(Hints: creates empathy- garners appreciation- builds employee morale)
Course Reference: Concept-Leadership Skills/ Unit 11-Leadership / Subject-Organizational Behavior
Sources:
i. Daniel Terdiman, “With Pixar, Steve Jobs Changed the FilmIndustry Forever,” www.cnet.com, October 6,
2011.
ii. Robert I. Sutton, “Pixar Lore: The Day Our Bosses Saved Our Jobs,” HBR Blog Network, January 10, 2011.
iii. “The Pixar Timeline,” Pixar.com.
OtherKeywords: HRM, Leadership and Change
20
12 The Best Office Perk From WordPress
Automattic, Inc. (Automattic), a web development firm established in 2005 was most notable for
WordPress (a free and open source blogging platform). Automattic had created a buzz in the business
world with its unconventional work culture of a 100% distributed workforce. Its global workforce, of
over 260 employees, either worked from home or from wherever else they wished to work from,
whenever they wanted.
The company was not against the idea of having a conventional office space. But it preferred to focus its
efforts on hiring self-motivated candidates (preferably with experience in freelancing or being self-
employed) instead of creating a lavish office. They understood employees‟ need for autonomy which
made their location of work insignificant.
All official communication between the employees happened online. Instead of relying on emails,
employees collaborated and interacted on internal blogs, in chat rooms and Skype, etc. A special type of
blog, named P2, further facilitated employee interaction and allowed them to catch up on any activity
they might have missed.
Employees were equipped with the latest Apple devices like MacBook and a big monitor. All newly
hired employees were given $2,000 in order to improve their home offices. Employees also received
reimbursements in case they wished to get a desk at a co-location centre (type of data centre providing
space, power and bandwidth for rent).
The fortune saved on creating plush offices had been dedicated to travel and meeting budgets for its
employees. Teams were free to meet for a „hack‟ week (time away from day-to-day work to collaborate
and develop ideas employees were passionate about) at any location in the world, whenever they wanted.
The company also paid for an annual „Grand Meetup‟ at exotic locations like San Francisco, Quebec,
Mexico, etc.
The distributive and decentralized workforce model had helped the company to attract and hire some of
the best engineering talent worldwide. It had also kept office politics at bay.
 It may curb creativity
 It may need a considerable amount of adjustments and allowances especially from managers 
 It required a significant level ofself-motivation from employeesDespitethesebenefits,expertswereapprehensiveaboutthebenefitsofremote work culture:
Organizations must strive towards hiring the right employees and should create and nurture a culture
based on mutual trust. The case of Automattic illustrated „employee empowerment and
participation’. Empowering employees and encouraging participation based on mutual trust could be
vital for a company‟s success.
DiscussionQuestions
1. Discuss the measures taken by Automattic to ensure employee empowerment and participation.
(Hints: created a distributed workforce-recruited self-motivated candidates-provided monetary
assistance to create conducive work environment at home)
2. Discuss the pros and cons of remote/distributed work culture.
(Hints: money saved on offices was dedicated towards travel and meeting budgets that further
motivated employees-fear of curbing creativity-might require significant adjustments from the
management)
Course Reference: Concept-Empowerment /Unit 12-Empowerment & Participation / Subject-Organizational
Behavior
Sources:
i. Aimee Groth, “The Makers of WordPress Learned Years Ago that the Ultimate Office Perk is not Having an
Office,” QUARTZ India, September 15, 2014.
ii. Julie Bort, “Great Place to Work: At AutomatticEmployees All Work From Home and Travel to Exotic
Locations,” Business Insider, August 8, 2013.
iii. Rachel Emma Silverman, “Step Into theOffice-Less Company,” TheWall Street Journal, September 4, 2012.
iv. Scott Berkum, “How WordPress Thrives with a 100% Remote Workforce,”www.hbr.org, March 15, 2013.
OtherKeywords: Global HRM
21
13 Walmart‟s New Dress Code: Triggering Employee
Conflict?
Walmart Stores, Inc., well-known as Walmart, a US based multinational retail giant was founded by Sam
Walton in 1962 and was headquartered at Arkansas.
In August 2014, Walmart announced its decision to introduce a new dress code – khaki or black trousers
and blue or white collared polo shirts - effective September 2014. Employees were expected to bear the
expense for these new outfits, estimated to cost $40-$50 per annum.
Walmart would continue to provide its mandated branded blue vest for free. Employees could either buy
new clothes or use existing outfits that met these new specifications. They could buy these new outfits at
Walmart stores using „employee discount‟ or at any other store. Walmart‟s decision irked
employees, especially those at the lowest end of the pay spectrum (Refer to Chart 1 for Employee‟s
objection about the new dress code and the company‟s justification).
Chart 1: Walmart‟s New Dress Code

Employees‟ Objections

Company‟s Justifications
Employees expected Walmart to Legally, companies were expected to pay if they required
bear the cost of the newly employees to wear branded clothes or outfits that could not
introduced dress code.

be worn outside of work.
Collared shirts and khakis were outfits that could be worn
 
elsewhere.
Expecting workers to pay for Employers were expected to bear the expense if the cost of
their new outfits would put the dress and its cleaning fees caused a worker‟s wage to
additional burden on the already drop below $7.25/hour. Full-time employees at Walmart
pressed budgets.

earned about $12.92/hour.
 Employees felt that a change in The new dress code was introduced to impart a professional
dress code, by burdening its touch and to distinguish Walmart‟s employees from
employees, was not a necessary customers dressed in khakis and blue or white t-shirts.
action.
Adapted from Deborah Weinstein, “What Employers Should Learn from Wal-Mart‟s Dress Code Controversy,”
Knowledge@Wharton, September 22, 2014
Walmart could find itself embroiled in class action suits if it failed to resolve this conflict. Legal experts
suggest that Walmart should either recall its new dress code or work out a settlement with its employees.
The case of management-employee disagreement at Walmart illustrated ‘conflict caused due to
organizational change’. The decision to introduce a new dress code was viewed differently by the
organization and its employees. Employers must exercise caution while formulating and
implementing policies that could impact its employees in a negative manner.
Discussion Questions
1. Discuss the reasons that could trigger employee conflict in an organization.
(Hints: change in company policy- passing on the financial burden of a policy change on the
employees)
2. What objections did employees raise over Walmart‟s new dress code?
(Hints: employees were expected to bear the cost of the new dress code- felt it was not a necessary
action)
Course Reference: Concept- DestructiveConflict/ Unit 13- Conflict, Negotiations & Inter Group Behavior/Subject-
Organizational Behavior
Sources:
i. Deborah Weinstein, “What Employers Should Learn from Wal-Mart‟s Dress Code Controversy,”
Knowledge@Wharton, September 22, 2014.
ii. Erik Sherman, “How Walmart‟s „Dress Code‟ Costs Employees,” Forbes, September 8, 2014.
iii. Jillian Berman, “Walmart Workers Complain they Can‟t Afford New Dress Code,” The Huffington Post,
October 9, 2014.
OtherKeywords: HRM
22
14
Google Could Upshoot Innovation through Group
Formation
Google, a US-based MNC, founded by Larry Page and Sergey Brin in 1998, offered internet based
services and products. It had around 47,756 employees as of 2013, out of which 10,000 employees
worked as software developers in 40 offices.
Larry Page tookthe charge ofCEO at Google for second time in 2011. Page reorganized (Refer to Chart 1 for
Page‟s Reorganization Plans) the original group called as “OC” (Operating Committee) to a new team
called“L Team” (Larry Team). He revamped the existing groups andcreatedL team to attain some
specific organizational goals. His motive in reorganizing and creating the group was to be more
competitive in the battle against companies such as Apple Inc and Facebook.
 Removing inefficiencies

 Coordinating different product groups

 Developing a self-driven team

 Giving autonomy

 Foster innovation

 Diverting resources to big projects

 Speed up decision making

 Improve executionSpecificorganizational goals to be attained:
Combining Groups
 Merged the groups
working on computer-
operating software and
Google's Chrome Web
browser with the team
of Android mobile
operating software

 The work of software
developerswas
simplified by combining
two different platforms

 The group was initiated
to develop an app that
converted Android apps
to run on Chrome

 Anticipating the future
demand,the groups
focus was on Android
Chart 1:Page‟s Reorganization Plans
Reorganizing Groups
 Split the team of mapping
and commerce unit into two
separate groups

 The mapping group was
made a part of search team

 The commerce unit group
was included in advertising
products groups

 The commerce teamwas
expected to focus on selling
the ad space on Google sites
Forming New Group
 Formed a new group
called "L Team"
("L" means Larry)

 Executives who were
less successfulto fit the
Google products under
one umbrella were
moved to newprojects

 Executives who were
successfulin defining
the products fit were
taken into L-Team

 The team directly
reported to the CEO and
focused on developing
new products
(Resultant: Google+)
Adapted from Efrat Amir,“Page Shakes Up GoogleLeadership Team Further,” Wall Street Journal, March 14,
2013
Page‟s objective behind reshaping the teams and forming of L-Team was to encourage quick
innovation and offer a unified service platform to the customers.
23
Different types of ‘groups are formed’ to achieve specific results in organizations. Page could foster
innovation in Google by combining and re-organizing teams, allocating new tasks and responsibilities
and by developing a new team called L-Team.
Discussion Questions:
1. Explain the reasons for and goals to be achieved in formation of groups?
(Hints: achieve specific goals-removing inefficiencies- speed up decision making)
2. Name the internalfactors that forcedLarry Page to reorganize groups in Google?
(Hints: to be more efficient-to be able to compete against competitors like Apple)
Course Reference: Concept-Natureof Groups/Unit – Foundations of Group Behavior/ Subject – Organizational
Behavior
Sources:
i. “There‟s A Pretty Big Tension In How Larry Page Is Running Google,” Business Insider, March 15, 2013.
ii. Efrat Amir, “Page Shakes Up Google Leadership Team Further,” Wall Street Journal, March 14, 2013.
iii. Oreskovic Alexei, “Exclusive: Google CEO‟s Inner Circle: Meet theL Team,” in.reuters.com, San Francisco,
December 17, 2011.
OtherKeywords: Organization Development
24
15 Team Building: Menlo Innovations‟ Formula for
Success
Menlo Innovations, well known as Menlo, a software design and development firm was incorporated in
2001. It was headquartered at Ann Arbor, Michigan. Menlo was known for its culture of innovation and
experimentation. It had an open workspace devoid of physical barriers like cubicles. Even the CEO,
Richard Sheridan, found himself seated next to his staff members. In 2012, Sheridan and his teammembers
conducted over 240 tours, showcasing Menlo‟s culture to representatives from establishedplayers like
Toyota andThomson Reuters. (Refer to Chart 1 for the details of Menlo‟s collaborative team culture):
Chart 1: The Collaborative Team Culture @ Menlo
Adapted from Richard Sheridan, “Joy, Inc.: How We Built a Workplace People Love,” strategy-business.com, 2013
Despite its high-involvement culture, experts had voiced their apprehensions about Menlo‟s team-
building approach (Refer to Chart 2 for concerns about Menlo‟s collaborative work culture).
Chart 2: Menlo‟s Collaborative Work Culture & Concerns
Collaborative Work Culture CONCERNS
Open-Collaborative Workspace Did not use any of the proven
 Pair Programming'-No employee Employee techniques like stock ownership
worked alone Compensation and profit sharing for rewarding its
employees
Employee-Friendly Work Environment Management tactic of making
 The company allowed its employees to
Real Intention employees work hard without
behind the adequately compensatingand
bring their babies, known as 'Menlo „Joyful, Team‟ rewarding them for the same

Babies' to work Culture
40 hours work weeks
Self-Managed Teams Not feasible for established and
 Employees were encouraged to work on Applicability
large organizations
the simplest things that could possibly
work
Adapted from Leigh Buchanan, “Taking Teamwork to the Extreme,” Inc..com, April 18,2013
25
‘Building effective teams’ served as the secret ingredient in Menlo Innovation‟s success story. By
creating a bossless culture, Menlo encouraged its employees to continuously communicate and
collaborate witheachother.Menlo‟sapproachofempowering its employees had beeninstrumental in
its success.
Discussion Questions
1. How did Menlo succeed in creating a collaborative work culture?
(Hints: recruit the right candidates-adopted a problem-solving approach-a hierarchy free
organization structure)
2. Discuss the drawbacks of the team-building approach.
(Hints: doubts overthe real intention behind creating happy teams- feasibility issues)
Course Reference: Concept-Essentialfor Building Effective Teams/ Unit 15-Understanding Work Teams/ Subject-
Organizational Behavior
Sources:
i. John Baldoni, “Menlo Innovations: Putting the Joy Into Work,” Forbes, January 7, 2014.
ii. Leigh Buchanan, “Taking Teamwork to the Extreme,” Inc..com, April 18,2013.
iii. Richard Sheridan, “Joy, Inc.: How We Builta Workplace People Love,” strategy-business.com, 2013.
OtherKeywords: Global HRM
26
16 Elements of Informal Organization at Google
Google, a multinational company providing Internet-related services and products like search and online
advertising technologies, was founded by Stanford University PhD students, Larry Page (Page) and
Sergey Brin (Brin). It was incorporated in 1998 and was headquartered at Mountain View, California.
Google encouraged its employees, popularly known as Googlers, to pose work and company related
queries directly to Page, Brin or any other employee or superior, irrespective of their designation (Refer
to Chart 1 for the Flat Organization Structure @ Google). Employees were attracted to the company‟s
wafer-thin hierarchical structure. Google was ranked first in Fortune magazine‟s „Best Companies to
Work For‟ in 2007,2008, 2012 and 2013.
Chart 1: The Flat Organization Structure @ Google
Adapted from Karl Moore and Kylie, “The Decline but Not Fall of Hierarchy – What Young People Really
Want,” Forbes, June 14, 2011
Despite its benefits, Google‟s flat organization structure suffered from certain drawbacks (Refer to
Chart 2 for the pros and cons of Google‟s organization structure).
27
Chart 2: Pros & Cons of Google‟s Flat Organization Structure
PROS CONS
Promoted employee empowerment and employee Required a great deal of adjustment from both,
engagement the employer and the employee
Focused on work instead of designations Could lead to a chaotic work environment
Helped in creating greater transparency and a Sharing confidential information like company
sense of ownership among employees roadmaps and product launch plans could lead to
information leakage which could cost the
company in the long-run
Adapted from Karl Moore and Kylie, “The Declinebut Not Fall of Hierarchy – What Young People Really Want,”
Forbes, June 14, 2011
Experts opined the benefits of a hierarchical organization structure could not be totally over-looked.
1. Relevant in times of crisis : Managers/Superiors could use their past experience to guide their juniors
and relatively less experienced sub-ordinates in handling a crisis situation more efficiently
2. Fostered a sense ofaccountability: When sub-ordinates were required to report to a higher authority
it would drive a sense of responsibility and accountability.
‘Informal Organizations’ referred to firms where power was derived from personal characteristics
instead of the position/designation of an individual. Google adopted a hierarchy-free, fun-filled work
environment where employees were not expected to adhere to conventional norms like dress codes.
Discussion Questions
1. Discuss the characteristics of an informal organization.
(Hints: flat organization structure-open communication-high level of employee involvement)
2. What were the pros and cons of Google as an informal organization?
(Hints: focus on work not designations-greatertransparency-could lead to a chaotic work
environment
Course Reference: Concept-Natureof Informal Organizations/ Unit 16-Informal Organizations/ Subject-
Organizational Behavior
Sources:
i. James B. Stewart, “Looking for a Lesson in Google‟s Perks,” TheNew York Times, March 15, 2013.
ii. Karl Mooreand Kylie, “The Declinebut Not Fall of Hierarchy – What Young People Really Want,” Forbes,
June 14, 2011.
iii. “Our History in Depth,” www.google.co.in.
OtherKeywords: Global HRM
28
17 Holacracy @ Zappos
Zappos.com, popular as Zappos, a Las Vegas based online clothing and shoe retailer, was founded in
1999 and was acquired by Amazon.com in 2009. Zappos had about 1,500 employees in 2014.
In late 2013, the company decided to bid adieu to its conventional hierarchical organizational structure. It
adopted a holacratic organizational design instead. The decision to adopt a holacratic organizational
design was taken to save Zappos from becoming unwieldy and inflexible as its business and workforce
expanded (Referto Chart 1 for Zappos‟ Holacratic Organizational Design).Holacracy:Based on the Greek
term „holon‟ which referredto units that were self-reliant yet dependent on the greater whole, of
which they were a part.
Chart 1: Zappos‟ Holacratic Organizational Design
Self-Governing
Importance on 'Job Roles'
Overlapping Circles with Even
Power Distribution
400 Circles
Employees took up Multiple Roles
Holacratic
Design
Removal of Designation
Restricted Positional Power.
Employees Took Accountability
Voiced Grivence
At the Frequent 'Town Halls
Adapted from Steve Denning, “Making Senseof Zappos and Holacracy,” Forbes, January 15, 2014
Till 2014, Zappos was the largest company to adopt a holacratic structure. Despite its many advantages,
holacracy suffered from a few drawbacks (Refer to Chart 2 for the pros and cons of holacratic
organizational design).
Chart 2: Pros & Cons of Zappos‟ Holacratic Organizational Design
PROS CONS
Promoted employee empowerment Required a great deal of adjustment from both, the
employer and the employee
Focused on work instead of people Holacracy may seem impractical and unreal. For instance,
it may not be feasible to design meetings to instantly
redress employee complaints/issues
Helped in creating greater transparency Lacked a „human-centric‟ approach
as employees could not use designations
as an excuse for non-performance.
Adapted from various sources
The case of Zappos illustrated ‘types of organizational design’ which defined the framework within
which employees functioned. Holacracy was one of the new emerging organizational designs. The
decision of adopting a holacratic structure may prove critical in deciding Zappos‟ fate.
29
DiscussionQuestions
1. What were the characteristic features of Zappos‟ new holacratic organizational design?
(Hints: self-governing-frequent Town Halls-even power distribution-no designations)
2. Discuss the advantages and disadvantages ofthe holacratic organizational design?
(Hints: promoted employee empowerment-focused on work instead of people-lacked human-centric
approach)
Course Reference: Concept-Types of Organizational Design/ Unit 17-Foundations of Organizational Structure/
Subject-Organizational Behavior
Sources:
i. Jena McGregor, “Zappos Goodbye to Bosses,” The Washington Post, January 3, 2014.
ii. Steve Denning, “Making Sense of Zappos and Holacracy,” Forbes, January 15, 2014.
iii. “The Holes in Holacracy,” The Economist, July 5, 2014.
OtherKeywords: Global HRM, HRM
30
18
The Decision Rationality behind Appointing Shikha
Sharma @ Axis Bank
Axis Bank Limited, formerly known as UTI Bank, provided financial services to customers including
retail businesses and large and mid-sized companies. Axis Bank headquartered in Mumbai, India had
about 2,400 branches and nearly 12,900 Automated Teller Machines (ATMs) countrywide in 2014. It
was the 3rd largest private bank in India in 2014.
In 2009, majority of the Board members at Axis Bank arrived at the decision to appoint Shikha Sharma,
Managing Director (MD) and CEO at ICICI Prudential Life Insurance, as Axis Bank‟s newCEO and MD.
This decision was not supported by Axis Bank‟s outgoing Chairman andMD, PJ Nayak. Nayak was
unable to stop the decision to appoint Shikha as all the Directors, barring him, supported her hiring
(Refer to Chart 1 for arguments supporting and negating the decision to hire Shikha Sharma‟s).
Chart 1: Arguments Supporting and Negating Shikha Sharma‟s Recruitment Decision Making
Internal Candidates Lacked
the Desired 'Well -Rounded'
Experience
Absence of a Reasons Shortlisting of
Suitable Supporting potential successor
Successor within Recruitment withoutseeking
the Bank Decision Board's approval
Shikha's Strategic Decision Making Ability
ICICI Pru continued to be the 'Market Leader' under
Shikha's Leadership
ExcellentInternal
Leadership
An Insider
Should be
Considered Reasons Felt Shikha
OpposingNayak lacked relevant
Recruitmentpreferred banking
DecisionHemnat Kaul experience
and MM
Agarwa l
Adapted from Sourav Majumdar, “The Quiet Architect: Shikha Sharma has MagicallyTransformed Axis Bank in
a Short Span,” Forbes India, October 13, 2014
bagged the „Best CEO Private Sector‟ award. Under her leadership, Axis Bank:
 Featured in Forbes Asia‟s „Fab 50‟.

 Emerged as both,a corporate and retail institution.

 Witnessed 44% (year-on-year) growth in retail term deposits,in the June 2014 quarter.
 Recorded 18% growth in its net profit (year-on-year).
In2014,Shikha-
Recruiting Shikha Sharma as Axis Bank‟s new CEO and MD illustrated the case of ‘decision
rationality’.Organizations were often expected to choose a course of action from a set of available
alternatives. The top management at Axis Bank evaluated both,the internal and external candidates
and arrived at a decision that proved beneficial for the Bank.
31
Discussion Questions
1. Discuss the decision rationality process.
(Hints: problem definition-identification of key criteria-awareness of alternatives-evaluation of
alternatives-choosing the alternative with the highest value)
2. Discuss the decision rationality behind Shikha Sharma‟s appointment as the CEO at Axis Bank.
(Hints: need for a suitable successor-absence ofa suitable candidate internally-Shikha‟s strategic
decision-making ability)
Course Reference: Concept-Decision Rationality/Unit 18-Decision Making/ Subject-Organizational Behavior
Sources:
i. “Nayak Quits After Axis Bank Appoints Sharma as MD,” Business Standard, April21, 2009.
ii. Shyamal Majumdar and Sudeep Jain, “Lunch with BS: Shikha Sharma,” Business Standard, February 16,
2010.
iii. Sourav Majumdar, “The Quiet Architect: Shikha Sharma has MagicallyTransformed Axis Bank in a Short
Span,” Forbes India, October 13, 2014 .
OtherKeywords: HRM
32
19 The Power Games @ BCCI
The Board of Control for Cricket in India, popularly known as the BCCI, was the national governing
organization for cricket in India. BCCI was founded in 1928 and was headquartered in Mumbai, India. It
was a member of the International Cricket Council. This membership gave BCCI the authority to select
officials, players and umpires to participate in various international events (Refer to Chart 1 for
BCCI‟s Transformation Story).
Chart 1: BCCI‟s Transformation Story
Adapted from Venkat Ananth, “India‟sCricket Board, a Law Unto Itself,” MINT, December 2, 2014
N. Srinivasan, faced a number of allegations as the President of BCCI in 2013 (Refer to Chart 2 for
allegations against N Srinivasan).
Chart 2: Allegations Against Srinivasan
Allegations Actions Taken
Srinivasan became the owner of the Case on the grounds of conflict of interest was pending
IPL team, Chennai Super Kings (CSK) against him in the Supreme Court of India in 2014.
through his company India Cements
 K. Srikkanth was appointed as
CSK‟s brand ambassador when he
was still the Chairman of the

National Selectors‟ Committee
The Indian Cricket Captain and
captain of CSK, M.S. Dhoni, had
been appointed as a vice-president
in India Cements
Was accused in spot fixing and betting His son-in-law was accused of passing confidential
scams in the IPL matches information to bookies and was jailed.
Continued to serve as the Chairman of In March 2014, the Supreme Court of India urged
BCCI despite numerous allegations Srinivasan to step down from the Chairman‟s position.
and investigations against him In December 2014, Supreme Court questioned the rationale
behind Srinivasan‟s presence in the BCCI‟s meetings
despite stepping down from the Chairman‟s position.
Adapted from Shankar Raghuraman, “BCCI Politics Similar to National Politics,” January 3, 2013 and recent
newspaper articles
33
‘Power’ referred to the ability of an individual, group, etc. to influence and control anything that was
of significance to others. The scams at BCCI had cast an impression of power misuse in order to
influence important decisions like elections and selecting members for international matches.
Discussion Questions
1. What role could power play in influencing important decisions in organizations?
(Hints: influence recruitment decision-influence selection decision-create a culture of bias)
2. Discuss the incidents that created an impression of power misuse at BCCI.
(Hints: allegations of funds misappropriation at HCA- accusations on grounds of bias in match
allocations)
Course Reference: Concept-Power/Unit 19-Power and Politics/ Subject-Organizational Behavior
Sources:
i. Krishnadas Rajagopal, “Supreme Court Tells Srinivasan to Keep Away from BCCI Working Committee,” The
Hindu, December 10, 2014.
ii. Shankar Raghuraman, “BCCI Politics Similarto National Politics,” The Economic Times, January 3, 2013.
iii. Venkat Ananth, “India‟sCricket Board, a Law Unto Itself,” MINT, December 2, 2014.
OtherKeywords: Global HRM
34
20
General Motors: Inculcating a New Organizational
Culture
General Motors an American multinational automobile manufacturer headquartered in Detroit was set-up
on September 16, 1908 by William Billy Durant. In 2014, GM operated in more than 120 nations
worldwide with over 2, 00,000 employees.
In the 1980s and 1990s, GM focused on global expansion. By 2000, GM had established its pres ence in
emerging economies like Brazil and China. During the global recession and credit crisis in 2008, car
sales plummeted. GM suffered significant losses and faced severe cash shortage. The company filed for
bankruptcy in 2009 and was bailed out by the US government. The US government invested nearly $50
billion to bail out GM. According to experts, GM‟s cost structure and its culture were regarded as the
major reasons behind the auto giant‟s plight.
GM‟s culture had been bureaucratic. Edward Whitacre, GM‟s newly appointed CEO in December
2009, made efforts to revamp this hierarchical set-up at GM by personally interacting with employees. In
September 2010, Whitacre passed on the CEO baton to Dan Akerson. To break the silo culture at GM,
Akerson reorganized the office space allocated to him. Instead of 3 large offices of about 13,000 square
feet, many smaller offices were created in order to accommodate the complete executive operations
committee. Luxuries like private bathrooms and daily food cart were done away with. Instead, cold cuts
were made available for lunch to all employees in the boardroom.
Communication was central to Akerson‟s approach of cultural transformation. He conducted frequent
video meetings to connect with GM‟s 1,500 senior managers. Akerson focusedon fostering a culture of
accountability, which was an aspect that had been overlooked in the past. Employees, at all levels, were
expected to focus on performance and results as they would be answerable for their actions and inactions.
In 2013, the company‟s revenue reached 155 billion as compared to 105 billion in 2009.
His efforts were being taken forward by Mary Barra who stepped in as GM‟s CEO in January
2014. Like Akerson, Barra was also working towards building a culture of responsibility at GM. For
instance, she appointed Jeff Boyer as the Global Safety Chief to cope with the ignition switch recalls at
GM. This would help the company stay focused on critical customer safety aspects and also instill a
sense of accountability.
Organizations must strive towards creating a culture that encouraged collaboration and
communication. The case of General Motors illustrated ‘organizational culture and types of culture’.
Companies with a top-down management approach and water-tight departments might not be able to
sustain in the long-run.
DiscussionQuestions
1. How did the organizational culture at GM evolve under the leadership of different CEOs?
(Hints: initially bureaucratic-attempts at personal interaction with employees-organizational re-
structuring)
2. What measures could be taken to break the hierarchical organizational culture in an organization?
(Hints: break silo culture- increase employee interaction-reduce structural and hierarchical barriers)
Course Reference: Concept-OrganizationalCulture/Unit 20-Organizational Culture/ Subject-Organizational
Behavior
Sources:
i. Amy C. Edmondson, “Fixing a Weak Safety Culture at General Motors,” Harvard Business Review Blog,
March 20, 2014.
ii. Bill Vlasic and Nick Bunkley, “Obama is Upbeat for G.M.‟s Future,” The New York Times, January 1, 2009.
iii. David Welch, “GM Files for Bankruptcy,” Bloomberg Businessweek, June 1, 2009.
iv. “General Motors Co.,”www.marketwatch.com.
v. Eric Beech, “U.S. Government Says it Lost $11.2 billion on GM Bailout,”www.reuters.com, April 30, 2014.
OtherKeywords: Leadership and Change
35
21
The Ignition Switch Recall Crisis: Lessons for
General Motors
General Motors, popularly known as GM, a US multinational company, was established in 1908 by
William Billy Durant. The company was involved in the designing, manufacturing, marketing and
distribution of automobiles and automobile parts. GM had operations across 120 countries globally and
has a worldwide workforce of more than 2, 00,000 employees as of 2014.
GM had been embroiled in an ignition switch catastrophe since January 2014. It was blamed for 13 deaths
and 31 crashes across the US. The faulty ignition switches stalledthe car‟s engine, knockedout
the brakes and power steering and deactivated the air bags if the car crashed. GM admitted to being
aware of the defect about a decade ago. The decision to recall these faulty cars came only in February
2014. The National Highway Safety Traffic Administration issued a fine of $35 million to GM for its
delay in recalling the 2.6 million faulty vehicles. The company was also accused of not informing its
customers about the ignition switch issue despite being aware of the problemfor 11 years.
In the past, GM did not welcome negative product feedback from its employees. For instance, Bill
McAleer, GM‟s former manager, had discovered and reported quality issues like gasoline leakage
and steering linkage problems during a routine obstacle drive. GM ignored these warnings. Instead,
McAleer was laid off in 2004.
In March 2014, GM appointedAntonValukas,who investigatedthe Lehman Brothers collapse, to head their
internal probe. In the same month, Mary Barra, GM‟s new CEO, appointed Jeff Boyer as VP for
global vehicle safety.This was a new designation created to tackle safety and quality issues at GM.
In April 2014,the company‟s dealers commenced the repairs on the recalledcars.Customers were not
charged for these repairs. In the same month, the company appointed Ken Feinberg, a lawyer specializing
in corporate payouts, to handle compensation claims. A „Speak up for Safety Campaign‟2 was also
initiated in April 2014. This campaign encouraged employees to bring out any potential safety issue.
Later in the month, the company restructured its quality and engineering teams in its bid to focus on
customer safety. GM changed its approach towards building a safety culture post the ignition switch
crisis. The company agreed to pay the $35 million fine in May 2014. In June 2014, 15 employees were
dismissed and 5 others disciplined for their negligence andincompetence basedon the internal review‟s
findings. In the same month, GM offered at least $1million to the families of the deceased. To reiterate the
company‟s focus on customer safety, GM added a link, „ignition recall‟, on its website. This provided
detailed information regarding the safety hazards associated with its various cars.
Organizations should be willing to modify their strategies and style of management to meet the changing
demands of business. The case of General Motors illustrated „managing planned change’.
It was essentialfor companies to be flexible and open to change in order to sustain in the long-run.
Discussion Questions
1. What were the consequences of GM‟s reluctance to accept employee feedback in the ignition
switch catastrophe?
(Hints: blamed for 13 deaths and 31 crashes across US- fined $35 million by the NHSTA)
2. Discuss how planned change could benefit an organization.
(Hints: improve product development process-encourage timely correction in products)
Course Reference: Concept-Managing Planned Change / Unit 21-Organizational Change / Subject-Organizational
Behavior
Sources:
i. Amy C. Edmondson, “Mary Barra Brings Teaming to General Motors,” Harvard Business Review, January 14,
2014.
ii. Tim Higgins and Nick Summers, “GM Recalls: How General Motors Silenced a Whistle-Blower,” Bloomberg
Businessweek, January 18, 2014.
iii. “GM Didn‟t Warn Customers About Ignition Switch Problems for 11 Years,” The Huffington Post, July 19, 2014.
OtherKeywords: Organization Development
2 General Motor‟s „Speak Up for Safety Campaign‟ was a program introduced for recognizing employees
who came up with ideas to increase vehicle safety. It was also aimed at lauding employees whenever they voiced
an aspect that could hamper customer‟s safety.
36
22 Reviewing Consultants through Survey Feedback
MQ Telecommunications (MQTC) Pvt. Ltd., a Singapore based company was incorporated in 2000. It
offered technology and telecommunication solutions for commercial offices, dealing rooms and data
centers. Its client list included government sectors, educational organizations, manufacturing, financial
sector and technologies companies.
Client-consultant relationship was evident from the ancient religious texts where kings used to take
advice from the wise men, sages, and saints because of their vast experience and wisdom gained from
travelling across kingdoms. This trend continued even in the modern world in different fashions. MQTC
appointed external management consultants several times to formulate key business decisions. Each
consultant assignment produced different levels of success. In 2012, a study was conducted by Steven H.
Applebaum to find which factors were relevant for effective client-consultant relationship. Nine pre-
determined factors in client-consultant relationship were considered for the study (Refer to Chart 1 for
the success factors):
Chart 1: Nine Pre-determined Success Factors
Nine Pre-determined Success Factors
 Consultant professionalism

 Matching client expectations with project deliverables

 Clear and well communicated expectations and outcomes

 Visible executive support

 Consultant adaptation to client readiness

 Consultant investing time in learning the clients environment

 Defining the outcomes in terms of incremental successes

 Real partnership between client and consultant

 Consultant participation in implementation phase
Adapted from Steven H. Appelbaum, The Client-Consulting Relationship: A Case Study of Critical Success Factors
At MQ Telecommuniques, Journal of Business & Economics Research, Volume 2, Number 2, 2012
Data was collected from 102 employees of MQTC. Managers from middle and lower level were selected
from human resources, enterprise services, corporate communications, marketing research and marketing
departments for the study. The results from the survey and the guidelines prepared for future consulting
projects based on the findings were as follows (Refer to Chart 2 for guidelines developed for client-
consultant relationship):
Chart 2: Results of Last Client-Consultant Relationship and Guidelines Developed for Future Client-
Consultant Relationship
Independent variables that emerged as
MQTC‟s guidelines for consulting assignmentssignificant for client-consultant relationship
 Adaptation to client readiness  Need for clarity, internal communication and
 Clarity of objective, deliverables and

buy-in

outcomes Spending more time on learning MQTC‟s
Prototyping and emphasis on incremental

environment

success Leveraging in-house knowledge and expertise
Continuously partnering with the project  Implementation planning and execution to be

team

consultant mandate
Consultants professionalism Developing more clear governance
 Understanding the sense ofurgency procedures.
Adapted from Steven H. Appelbaum, The Client-Consulting Relationship: A Case Study of Critical Success Factors
At MQ Telecommuniques, Journal of Business & Economics Research, Volume 2, Number 2, 2012
37
The survey feedback of MQTC employees were tested against the pre-determined factors, where in some
independent variables emerged as significant and aided in setting guidelines for future consulting projects
at MQTC.
In organizational development, ‘survey feedback’ was conducted among the work groups or
departments to understand the perceptions of employees about changes in the organization and to help
in the development of a motivational climate in the organization. MQTS survey results suggested
some improvements and evolved some guidelines for efficient client-consultant relationship for
improved project outcomes.
Discussion Questions:
1. What is survey feedback in this context?
(Hints: data collection- diverse audience for survey-analysis-feedback)
2. What benefits does survey feedback offer to organizations?
(Hints: understand employee perceptions-help develop a motivational work environment)
Course Reference: Concept- Survey Feedback /Unit 22 – Fundamentals of Organizational Development/ Subject –
Organizational Behavior
Sources:
i. Pattanaik Devdutt, “The Rishi-Raja Connect Reveals Advisory Lessons for today‟s CEOs,” Economic Times,
November 14, 2014.
ii. Steven H. Appelbaum, The Client-Consulting Relationship: A Case Study of Critical Success Factors At MQ
Telecommuniques, Journal of Business & Economics Research, Volume 2, Number 2, 2012.
iii. http://www.mqcoms.com/index.html#client.
OtherKeywords: Organization Development
38
23
Swachh Bharat Abhiyan: A Case of Sensitivity
Training
The Swachh Bharat Abhiyan (SBA) was launched by Mr. Narendra Modi, India‟s 15th
Prime Minister to
transform India‟s image from a filthy nation to a clean and hygienic country. This 5 year drive was initiated
on October 2nd 2014, the birth anniversary of Mahatma Gandhi, to fulfill his vision of „Clean India‟.
SBA encouraged India‟s 125 crore people to pledge devoting 100 hours every year, approximately 2
hours/week, to clean their surroundings. SBA aimed at sensitizing people towards the adverse effects of
open defecation. Making this programtranscend beyond a photo-op, pledging campaign would not be an
easy feat (Refer to Chart 1for Challenges faced by SBA).
Chart 1: Challenges of SBA
The “wa hhta Pledge was a general, broad-
 It did not mention the need to use toilets.  A lea li ess appeal did not necessarily result in
people using toilets.
brushedmessage.
“Open
DEFECATION
FREE INDIA
by 2019”
Open defecation is notconsidered unhealthy.
About 51% of the people who defecated in
the open, regarded it as being goodfor
hildre s health.
The rate of decline in open defecationmust be
 About 110 million toilets were needed to be built over the
next 5 years.trebled.
 Reluctanceto usetoilets ledto thefailureoftheprevious
PeopleinIndiahadapoorcompliancebehavior.

initiatives – Total “a itatio Ca paig a d Nir al

Bharat A hi a .
People who defecated in the open perceived latri e to
e a ea s of lu ur .
Adapted from Nidhi Khurana, “Beyond Brooms and Toilets,” Livemint, November 6, 2014
 Programs for sensitizing communities towards the benefits of using toilets for their health were to be
designed. The Ministry of Drinking Water and Sanitation decided to design campaigns to sensitize
school students towards the importance of using toilets. As a part of this campaign, teachers and
students were to be encouraged to spread the sanitation message, especially across their families.

 Sensitivity training programs were to be designed by using the successful „community-led‟ and
„demand-driven‟ approaches usedin Nepal and Bangladesh. In 1990, the „Social Mobilisation‟
(SOCMOB) campaign which started in Bangladesh,increasedthe demandfortoilets.It also created a
lucrative market for the private toilet producers.In 2012, the rate ofopen defecation in Bangladesh
dropped to 3% from 34% in 1990.ExpertssuggestedthatfortheSBAtobe successfulas a campaign:
‘Sensitivity Training’ was essential to make people receptive towards the importance of creating a
Swachh Bharat. Attempts made in the past failed to meet the desired outcome due to the
unwillingness of people to use toilets. Organizations could use sensitivity training to modify
employee behavior by understanding and changing their attitudes towards policy, practice, etc.
Discussion Questions
1. Explain how Sensitivity Training would help cultivate a cleanliness culture among Indians?
(Hints: create awareness towards the importance of using toilets- teachers and children to spread the
sanitation message)
2. Discuss the challenges that may impede the success ofthe Swachh Bharat Abhiyan.
(Hints: it was a general message-did not mention the need to use toilets-reluctance to use toilets)
Course Reference: Concept-Sensitivity Training/ Unit 23-Organizational Development Interventions/ Subject-
Organizational Behavior
Sources:
i. Debjani Arora, “Swachh Bharat Abhiyan:India‟s Sanitation Needs More Focus,” The Health Site, October 12,
2014.
ii. Nidhi Khurana, “Beyond Brooms and Toilets,” Livemint, November 6, 2014.
iii. “Swachh Bharat Abhiyan Kicks Off: 10 Key Facts,” The Financial Express, December 17, 2014.
OtherKeywords: HRM
39
24 Roca Inc.: The Story of „People-Oriented‟ Approach
to Organizational Development
Roca Inc., well known as Roca, was an outcomes-driven youth development organization. It was
dedicated towardstransforming the lives of young gangsters in the ages 17-24. The company was set-up in
1988 andwas headquartered at Boston. Many of Roca‟s employees were former gang members. In
2014, Roca served 494 high -risk youngsters. Of these, 92% had no fresh arrests and 98% had no
technical infringements. Roca was driven by a „people-oriented‟ approach in turning around the
lives of young women and men (Refer to Chart 1 for Roca‟s approach).
Chart 1: Roca‟s People-Oriented Approach
High-Risk Young Involved in Criminal Activities like selling drugs and
People street fights GET TER M IN JAIL
No Financial
No Jobs Limited Educational
Independence
Exposure
Roca’s Outreach and Data-Driven
Evaluation + Transformational
Relationships Approach
Showed-u p for these Processes like Peace-
Youngsters Keeping Circles
Helped Transform into
Respon sible Adults
High-Risk Young
+
Created a Better Future
People
Re-engage in Society
Educational Gains like life-skills
and case management programs
Renounce Criminal Activities
Stay out of Jail
Get Good Jobs
Economic Independence
Consistent,
Positive
Outcomes
Adapted from Peter Senge, Hal Hamilton and John Kania, “The Dawn of System Leadership,” Stanford Social
Innovation Review, Winter 2015
Roca used processes like „Peace Keeping Circles‟ to transform youngsters (Refer to Chart 2 for
process used at Roca).
Chart 2: Process Used @ Roca
Youngsters,
Police, Probation
Officers etc.
1st Step: All Critical Players get
Together in a Circle
2nd Step: Each person voiced his/her
deepest intentions in a few words
CORE IDEA
“What affects
the Individual
Affects the
Community”
3rd Step: Players patiently listen to
each others’ problems
4th Step: PKCs make its participants
realize that a problem affects all members of
a community and not just an individual.
Adapted from Peter Senge, Hal Hamilton and John Kania, “The Dawn of System Leadership,” Stanford Social
Innovation Review, Winter 2015
raised certain apprehensions about Roca‟s „people oriented‟ approach:
 Making the company and the leader acknowledge his/herown shortcomings and biases was not an
easy feat.

 Getting employees from different organizational levels to patiently resolve a problem called for a
well thought execution strategy and strong leadership
Expertshad-
„People-Oriented’ Approach referred to the supportive attitude of an organization‟s top-level
management insuccessfullyimplementingthe OD process. Roca and its management used a „people-
centric‟ technique to bring about transformation among troubled youngsters. A similar approach
could be used by companies to alter employee attitudes, improve inter -personal relations and to bring
about organizational changes.
40
Discussion Questions
1. Discuss the „people-oriented‟ approach at Roca Inc.
(Hints: re-engage high-risk youth in society-help in getting good jobs-offer educational gains like
life-skills)
2. What drawbacks could a people-oriented technique suffer from?
(Hints: not an easy feat to attain- called for strong leadership and a well thought execution strategy)
Course Reference: Concept-People-oriented Approach/Unit 24-Futureof Organizational Development/ Subject-
Organizational Behavior
Sources:
i. Crystal Garland, “Mentoring Gang-Involved Youth: How Roca, Inc. Combines Mentoring and Services in a
High-Risk Intervention Model,” Justice Center, January 31, 2012.
ii. Peter Senge, Hal Hamilton and John Kania, “The Dawn of System Leadership,” Stanford Social Innovation
Review, Winter 2015.
iii. “Roca‟s Mission is to Disrupt the Cycle of Incarceration and Poverty by Helping Young People Transform
Their Lives,” www.rocainc.org.
OtherKeywords: HRM
41
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ICFAI Organizational Behavior - Solved assignments and case study help

  • 1. Dear students, get ICFAI latest Solved assignments and case study help by professionals. Mail us at : help.mbaassignments@gmail.com Call us at : 08263069601
  • 2.
  • 3. AN INTRODUCTION TO DIFFERENTIATED LEARNING TOOLS Participants in flexible learning programs have limitations on the nature of the time they can spend on learning. Typically they are employed fully or partially, pursuing higher studies or have other social and familial responsibilities. Availability of time is a great constraint to these students. To aidthe participants,we have developedfour unique learningtools as below:  Bullet Notes : Helps in introducing the important concepts in each unit of curriculum, equip the student during preparation of examinations and  Case Studies : Illustrate the concepts through real life experiences   Workbook : Helps absorption of learning through questions based on reallife nuggets  PEP Notes :Sharing notes of practices and experiences in the Industry will help the student to rightly perceive and get inspired to learn concepts at the cutting edge application level.placementinterviews Why are these needed?  Adults learn differently from B. School or college going students who spend long hours at campus.  Enhancing analytical skills through application related learning kits trigger experiential learning  Availability of time is a challenge.  Career success increasingly depends on continuous learning and success What makes it relevant?  How is it useful?   Where does this lead to? As and when you get 5 to 10 minutes you can read one of these and absorb and comprehend. Spending more time is your choice. You can use the time in travel, waiting for meetings, lunch time, small breaks or at home usefully. Through these tools, the learning bytes are right sized for ease of learning for time challenged participants. The content starts from practice and connect to precept making it easy to connect to industry and retain. They can be connectedto continuous assessment process of the academic program. Practitioners can use their real life knowledge and skill to enhance learning skills. Immediate visualization of the practical dimension of the concept will offer a rich learning experience.
  • 4.  Easier to move ahead in the learning process.   Will facilitate the student to complete the program earlier than otherwise.Helpsstay motivated and connected. When is it useful? 
  • 6. © The ICFAI Foundation for Higher Education (IFHE), Hyderabad, March, 2015. All rights reserved No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means – electronic, mechanical, photocopying or otherwise – without prior permission in writing from The ICFAI Foundation for Higher Education (IFHE), Hyderabad. Ref. No. OB-CS-IFHE – 032015 For any clarification regarding this book, the students may please write to The ICFAI Foundation for Higher Education (IFHE), Hyderabad giving the above reference number of this book specifying chapter and page number. While every possible care has been taken in type-setting and printing this book, The ICFAI Foundation for Higher Education (IFHE), Hyderabad welcomes suggestions from students for improvement in future editions. ii
  • 7. CONTENTS 1 Honeywell‟s Globalization Challenge in High-Growth Markets 5 2 The Secret Ingredient Behind German Worker‟s High Organizational Performance 6 3 METRO Cash & Carry 8 4 Diversity at IBM 9 5 Honda: Communicating the „Waigaya‟ Way 10 6 Adapting to Cultural Change the Michelin Way 12 7 Can Pooja Jain Micromanage Luxor with her Personality Traits? 13 8 Kailash Satyarthi : A Story of Motivation 15 9 Kiran Mazumdar-Shaw: Changing Perceptions about Women as Entrepreneurs in India 16 10 KV Kamath Used Learning as a Tool to Transform ICICI Bank 18 11 A Case of Employee Protection: The Pixar Story 20 12 The Best Office Perk From WordPress 21 13 Walmart‟s NewDress Code:Triggering Employee Conflict? 22 14 Google Could Upshoot Innovation through Group Formation 23 15 Team Building: Menlo Innovations‟ Formula for Success 25 16 Elements of Informal Organization at Google 27 17 Holacracy @ Zappos 29 18 The Decision Rationality behind Appointing Shikha Sharma @ Axis Bank 31 19 The Power Games @ BCCI 33 20 General Motors: Inculcating a New Organizational Culture 35 21 The Ignition Switch Recall Crisis: Lessons for General Motors 36 22 Reviewing Consultants through Survey Feedback 37 23 Swachh Bharat Abhiyan: A Case of Sensitivity Training 39 24 Roca Inc.: The Story of „People-Oriented‟ Approach to Organizational Development 40 iii
  • 8. Introduction to the Case Study Participants in ICFAI University Programs are eager to apply theory into practice. They realize that application orientation can enhance their learning and subsequent usage of management precepts and practices. Picking out the principle behind real world events is critical to this learning. To fulfill this objective the institution has introduced the Case Study methodology as a learning tool. A one page case is developed for learning a concept/topic from an illustration of a real world occurrence. The case illustrates a situation pertinent to an individual/a company/an industry or an economy in relation to a concept or issue covered in the curriculum. The illustration is specific to the point being discussed. The case depicts the knowledge which can be applied as illustrated in the practice of the real world. These experiences can be distilled to look at a core principle at play by the participant. While there could be multiple principles at play, the illustration of each case helps in its better understanding of the concept at a very fundamental level. The learning outcomes expected are: 1. Real world is illustrated and connected back to one concept/topic for better theoretical understanding. 2. Application based approach, which significantly enhances absorption and retention. 3. Exposure to specific business situations and developments improves perspective. It may be used for Assessment iv
  • 9. 1 Honeywell‟s Globalization Challenge in High-Growth Markets Honeywell International, Inc. a multinational conglomerate headquartered at Morris Township, New Jersey was incorporated in 1927. Honeywell had a long history of over 125 years and included many predecessor companies. Honeywell manufactured consumer and commercial products, aerospace systems, etc. for customers including leading corporations, Governments and private consumers. A Fortune 100 company, Honeywell had a global workforce of nearly 1, 32,000 employees in 2014. The company had operated in international markets since 1934. Despite its global experience, Honeywell found itself struggling in high-growth regions like China and India. In 2004, David Cote, Honeywell‟s CEO, appointed Shane Tedjarati as the President and CEO of high growth regions, to handle the situation. In China, Honeywell faced competition from 5 players who sold similar products. Honeywell adopted an „East for East‟ strategy under Tedjarati‟s leadership to cope-up with this competition. This strategy was devised to learn all aspects of running a business like sourcing, manufacturing and marketing from its Chinese competitors. The company shifted its R&D activities to China as a part of this strategy. It hired nearly 150 general managers in China based on its „East for East‟ strategy. Honeywell started developing products locally in the Chinese market, a first for the company. To monitor the impact of strategies and policies, a feedback mechanism of self assessment was undertaken annually.It was reviewed by the CEO. Based on the China success story, a similar approach was adopted to revive Honeywell‟s business in the Indian market in 2008. The „East for East‟ strategy was modified to suit the requirements in India. Later the staff of both countries collaborated on product development. China and India collectively contributed to 30% of the company‟s growth by 2011. It was not feasible to adopt the „East for East‟ approach in smaller emerging nations like Vietnam. Tedjarati createda „go-to-market‟ strategy basedon local market requirements. A teamof 3 to 5 people comprising of a senior business manager, an expert in government relations and a marketing executive along with a couple ofjunioremployees,was constitutedin thesecountries which helpedin nurturingbusiness partnerships and cross-business cooperation. This team wouldrepresent Honeywell‟s business in each of these nations. Honeywell deployed this successful strategy to its businesses worldwide in 2012. In 2014, most of the country managers at Honeywell were hired from within the organization. China, Honeywell‟s largest market outside U.S., served as the platform for all its globalization efforts. Business strategies for global markets must be designed in accordance with the demands of the local markets. The case of Honeywell illustrated ‘creation of a global village’.Organizations could succeed in new markets by adopting a flexible approach and tweaking its style of operations to meet the local requirements. Discussion Questions 1. Why should companies alter their strategies in the global market? (Hints: cope with local competition-understand demands of the local market-suit local requirements) 2. Compare „East for East‟ and „Go-to-Market‟ strategies. How did these strategies help to cope with the globalization challenge? (Hints: producing products locally-hiring local talent-helped nurture business partnership) Course Reference: Concept- Creation of Global Village/Unit 1-Understanding Organizational Behavior/Subject- Organizational Behavior Sources: i. Claire Jin, “HoneywellNames Shane Tedjarati President, High Growth Regions and Stephen Shang President, Honeywell China,” Press Releases, www.honeywell.com, January 01, 2012. ii. Luc Minguet, Educardo Caride , Takeo Yamaguchi, and Shane Tedjarati, “Shifting the Focus to Emerging Markets,” Harvard Business Review, September, 2014. iii. Sudipto Dey, “We Don‟t Want to Turn India into an Outsourcing Hub,” Business Standard, February 08, 2014. iv. “Coming of Age: Asia‟s Evolving R&D Economist Intelligence Unit, TheEconomist, August 2012. OtherKeywords: HRM 5
  • 10. 2 The Secret Ingredient Behind German Worker‟s High Organizational Performance Germany, a developed nation,consisted of16states andhad a population ofabout 80million in 2014. Berlin was the country‟s largestcityand alsoits capital. German employees worked foran average of35 hours per week and were granted about 24 paid vacation days per annum. Germany fostered a work culture aimed at increasing employees‟ productivity (Refer to Chart 1 for German‟s Focus on Productivity). Chart 1: German‟s Focus on Productivity  The 'German' Work Culture  Benefits to Employees 'Intense Focus': Working hours Balance between work and  were strictly devoted to work  personal life Frivolous activities like Facebook, 'Work Hard & Play Hard' Increasedchecking private emails, indulging Employees did not Employee in office gossip was socially spend time togetherafter Productivity &unacceptable. Zero Tolerance work hours Highertowards such unproductive +  =  activities Employees clubs were Organizational A culture of Direct involved in like Performance  sports and music Communication was encouraged. Higher number of paidWorkers spoke directly with their superiors on all matters including holidays allowed employees to enjoy up to a month offperformance review without using with their familiesicebreakers Adapted from Amol Sarva, and Eryn Paul, “WhyGermans Work Fewer Hours But Produce More: A Study in Culture,” The Huffington Post, November 11, 2014 German workers differed in their work culture compared to their US counterparts (Refer to Chart 2 for contrast between German and US Employee). Chart 2: German Employee Vs. US Employee German Employee US Employee Their language was commanding and devoid US employees used polite phrases in their official of polite phrases. communication. For instance,“I need this report by 10.00 am‟ For instance, “It would be great if you could get that report done by 4.00 pm” To counterthe accessibility offered by smart US employees were always connected to their work phones,the Government proposed to impose due to the accessibility offered by technological ban on 'work related emails' post 6.00 pm devices like smart phones Both parents could take paternal leave together US employees did not enjoy a similar benefit for the complete or partial granted period (maximum of 3 years each per child) Adapted from Amol Sarva and Eryn Paul, “Why Germans Work Fewer Hours But Produce More: A Study in Culture,” The Huffington Post, November 11, 2014  The fourth largest economy in the world by nominal GDP in 2014   The third largest importer and exporter of goods in the world in 2014   The country single-handedly pulledthe Eurozone‟s economy from the brink of recession in2012 ThehighperformanceofGermanshadmadethecountry:  6
  • 11. ‘Organizational Performance’ referred to the actual output or results delivered by an employee, team, department, etc. compared to the intended or desired output. German employees spent relatively lesser number of hours at work. But their productivity was relatively higher in comparison to their counterparts in other countries. Their culture of single-minded focus on work, goal oriented communication and intolerance towards unproductive activities had contributed significantly in increasing organizational productivity. Discussion Questions 1. Discuss the role of culture in improving organizational performance. (Hints: creates work-life balance-encourages new hobbies-increased productivity) 2. Distinguish between German and American work culture. (Hints: communication style-fixed working hours-greateremployee benefits) Course Reference: Concept-OrganizationalPerformance/ Unit 2-Foundations of Human Relations and Organizational Behavior/ Subject-Organizational Behavior Sources: i. Amol Sarva, and Eryn Paul, “Why Germans Work Fewer Hours But Produce More: A Study in Culture,” The Huffington Post, November 11, 2014. ii. C.W and A.J.K.D., “Working Hours: Get a Life,” The Economist, September 24, 2013. iii. Gabi Thesing, Jana Randow and Aaron Kirchfeld, “Germany‟s Growth: New Rules, Old Companies,” BloombergBusinessweek, September 30, 2010. OtherKeywords: HRM 7
  • 12. 3 METRO Cash & Carry Metro Cash & Carry‟s (METRO) success story began in 1964. METRO‟s wholesale store offered professional customers (like hotel and restaurant operators and catering firms, etc.) and bulk consumers the chance to pick out their own goods and take them away themselves. The company allowed its customers the luxury of selecting items under a single roof. METRO positioned itself as a B2B wholesaler. It catered to the needs of its small and midsize enterprises by offering them a wide range of customized products and services. It adopted the cash-and-carry approach reflecting the company‟s model of bulk buying and self-service. METRO had slowly yet steadily grown its presence across the globe. In 2003, it entered the Indian market with its first wholesale store in Bangalore (Karnataka). The market had poor transportation facility and a reluctance to embrace the cash only model, where customers were expected to pay for their purchase only in cash. Indian customers were used to informal sources of credit. They did not find the company‟s model of strictly paying by cash appealing. They also found transporting bulk purchases difficult on account of poor transportation facilities. These constraints challenged METRO‟s business model. The company took time to grasp this challenge and continued to stick to its original operating model. Consecutive years of bad business and four CEOs later, it realized that its conventional approach was failing. Understanding the context of the Indian market, METRO altered its payment and delivery model. In addition to its conventional cash-and-carry option, the company also offered the following new alternatives for its Indian customers: a. Credit and carry (No cash and carry) b. Cash and delivery (Cash and no carry) c. Credit and delivery (No cash and no carry) The remodelling and renewed efforts paid off. It clocked €670 mn as revenue in2010. METRO geared to expand from seven outlets in 2014 to about 50 by 2020. Organizations were required to learn when faced with adversity. They could experiment with their business models, policies, schemes, products or services. The case of METRO illustrated ‘situated learning and associative learning’. The learning could help them in new markets. DiscussionQuestions 1. Discuss the challenges faced by companies in the international market. (Hints: infrastructural challenges-understanding customermindset and preferences- difference in customer expectations) 2. What strategies did Metro adopt to succeed in the Indian market? (Hints: changed the traditionalist approach-changed delivery model-offered new payment options) Course Reference: Concept-Learning / Unit 3-Understanding Peopleand Organizations / Subject-Organizational Behavior Sources: i. Antonita Madonna and Mahesh Kulkarni, “Metro Cash & Carry Revamps India Strategy,” October 24, 2013. ii. Suneera Tandon, “Metro to Add 50 WholesaleStores by 2020 in India,” Livemint, May 5, 2014. iii. “German Retailer Metro AG Plans to Have 50 Wholesale Stores in India by 2020,” The Economic Times, May 6, 2014. OtherKeywords: Global HRM 8
  • 13. 4 Diversity at IBM The International Business Machines Corporation, well-known as IBM, a US multinational technology and consulting firm, headquartered in New York was incorporated in 1911 under the name Computing - Tabulating-Recording Company. The name IBM was adopted in 1924. The company was one of the largest technology firms worldwide in 2014. IBM had been a leader in workplace diversity. Decisions like hiring, employee compensation etc. were made without a bias towards gender, sexual orientation, color, etc.  The first training session was conducted for women employees in 1935.  It was the first organization to offer „domestic partner benefits‟ for its lesbian, gay, bisexual and transgender (LGBT) employees. The company published its first policy letter on equal opportunity in 1953.   IBM held its first LGBT global leadership conventions in 2000 and 2001.   The company supported the Employment Non-Discrimination Action in 2002. In the same year, Sandra K. Johnson became first black female member of IBM Academy.  IBM was the first company to implement the Genetic Information Nondiscrimination Act in 2005. The Act prohibited employers from using an individual‟s genetic information.   To bridge the differences in thought among diverse cultures and generations,the company introduced a concept named „Diversity of Thought‟ in 2010.  IBM introduced its Global Accessibility Center to make technology more accessible to employees with disabilities.   IBM had launched several programs worldwide with the aim of employing greater number of women. For instance, in India IBM launched a „Bring Her Back‟ campaign in 2011 with the aim of re-employing young mothers, women who had taken a break on personal grounds and those who had been ona sabbatical.IBM‟sdiversityinitiatives included the following: In 2014, IBM was ranked 2nd in DiversityInc‟s Top 10 Companies for Global Diversity. DiversityInc was an online magazine that offered news on the role of companies in strengthening diversity. In 2014, IBM followed an approach named Diversity 3.01 to ensure that the culture of diversity was uniformly adopted at all IBM offices globally. The case of IBM illustrated ‘organizational approaches of managing diversity’. Instead of overlooking differences, organizations should work towards understanding diversity. Organizations could reap benefits by fostering a culture which embraced diversity. DiscussionQuestions 1. Discuss the various ways of inculcating a culture of diversity in organizations. (Hints: hiring women and individuals from the LGBT community, etc.-adopting non-discrimination policies- introducing diversity promoting programs) 2. How did focusing on diversity contribute to IBM‟s success? (Hints: high ranking in the Global Diversity survey-one of the largest technology firms worldwide) Course Reference: Concept-Individualand Organizational Approaches to Managing Diversity/ Unit 4-Diversity and Ethics/ Subject-Organizational Behavior Source: i. Glenn Llopis, “Diversity Management is the Key to Growth: Make it Authentic,” Forbes, November 6, 2011. ii. N Shivapriya,“IBM on a Drive to Hire MoreWomen in India,” TheEconomic Times, May 21, 2012. iii. “Employee Diversity,” CorporateResponsibility Report, 2010. OtherKeywords: Global HRM, International Business, Organization Development, Leadership and Change 1 Diversity 3.0 is the term used to denote IBM‟s latest diversity policy. Theobjective of Diversity 3.0 is to make the best use of employee diversity for innovation. 9
  • 14. 5 Honda: Communicating the „Waigaya‟ Way Honda Motor Company Ltd., a Japanese multinational automobile, power equipment and motorcycles manufacturer was founded in 1948 by Soichiro Honda and was headquartered at Minato, Japan. In 2014, Honda recorded a revenue of about USD 120 billion and had a global workforce of about 200,000 employees. At Honda, decisions were made using an impromptu and agenda-free communication technique popularly known as „Waigaya‟. Waigaya was a Honda coinage to symbolize the noise generated by the jabbering and heated discussion of a number of people (Refer to Chart 1 for the Waigaya Process @ Honda). Chart 1: The „Waigaya‟ Process @ Honda Adapted from Jeffrey Rothfeder, “For Honda, Waigaya Is the Way,” strategy-business.com, August 1, 2014 Honda widely resorted to Waigaya to resolve product related problems. For instance, Waigaya was instrumental in designing Honda‟s thirdgeneration „Acura TL‟, a midsizedluxury sedan launchedin 1995. A decade later,Acura TLstarted losingits sheen.It was viewed as stuffy and old-fashioned due to its „boxy‟ design. A team of ten participated in the Waigaya which lasted for months. At the end of this process, TL was re-styled as „The Ultimate Athlete‟. Despite these advantages, experts had voiced their concern over Waigaya‟s effectiveness as an organization-wide communication medium(Refer to Chart 2 for the advantages and disadvantages ofWaigaya). Chart 2: Advantages Vs. Disadvantages ofWaigaya “Advantages” “Disadvantages” Encouraged open-communication „Waigaya‟ dids not result in any value Encouraged fearless defense/challenging of addition more than half the time, thereby, leading to waste of resources and time ideas    Absence of a structure and agenda made it aAn idea was accepted solely on its „MERIT‟ . Factors like hierarchy and designation held  less productive process Lacked the „leadership‟ element necessary  no relevance. Served as a catalyst for innovation for creating strong results Aided unbiased decision-making Adapted from various sources At Honda, Waigaya had offered a platform for open ‘communication’ among employees irrespective of their designations. These uninhibited discussions had helped Honda resolve numerous problems ranging from product styling to growth-related issues. Discussion Questions 1. Discuss the importance of communication in organizations. (Hints: platform to discuss problems/facts/opinions,etc.-work out feasible solutions-encourage innovation) 10
  • 15. 2. What were the advantages and disadvantages ofadopting Waigaya as a way of organization wide communication method? (Hints: helps in unbiased decision-making-productivity issues-absence of clear leadership) Course Reference: Concept-Communication/ Unit 5-Managing Communication/ Subject-Organizational Behavior Sources: i. Jeffrey Rothfeder, “5 Brilliant Strategies That Make Honda One of the World‟s Most Innovative Companies,” BusinessInsider, July 29, 2014. ii. Jeffrey Rothfeder, “For Honda, Waigaya Is the Way,” strategy-business.com, August 1, 2014. iii. Karen Lowry, Larry Armstrong and David Woodruff , “A Car is Born,” Bloomberg Businessweek, September 12, 1993. OtherKeywords: Global HRM, HRM 11
  • 16. 6 Adapting to Cultural Change the Michelin Way Michelin, a leading manufacturer of tyres and other rubber products with its headquarters at Clermont - Ferrand, France was established on May 28, 1888 by Michelin brothers, Andre and Edourad. Michelin was initially involved in the manufacture of tyres for bicycles and horse-drawn carriages. In the 1890s, the company introduced pneumatic tyres for automobiles. Michelin set-up its first plant outside France in Turin (Italy) in 1906. In 2014, the company had about 72 production facilities across 19 countries with nearly 111,200 employees of 120 different nationalities across the globe. The company adopted different strategies in order to cope-up with cultural changes worldwide. For instance, in 2001, Michelin entered a joint venture with China‟s Shanghai Tyre and Rubber Company. Michelin‟s headoffice at France was keen on adopting its „Management System of Daily Production‟ (MDP) in China. Chinese employees, in general, and the production line workers, in particular, lacked faith in Michelin‟s management team. Soon, cultural disparities between the local employees in China and the expatriates started surfacing. This resulted in high reject rates of its tyres and a high turnover of the production line employees. Michelin introduced a cultural integration program, giving the Chinese team members adequate time to understand and learn the Michelin culture. Overseas studies were also offered as a part of this integration program. By end of 2010, the tyre‟s reject rate dropped by 32% and turnover of production line staff dropped by 44%. Similarly, when Luc Minguet, took over as the COO of Michelin‟s U.S. truck business in 2002, his candid management style was not well received by his colleagues in the US. Minguet‟s approach of giving candid feedbacks, focusing only on the performance drawbacks, was not welcomed by his American colleagues. His earlier experiences in the international market, including 7 years in the UK and 3 years in Spain, did not help. Guidance from an „executive coach‟ specializing in cultural issues helped Minguet develop a culturally sensitive approach. Managers at Michelin underwent training in order to understand the cultural norms and expectations of employees worldwide. In 2014, the managers at Michelin were offered cultural training even if they moved to seemingly similar countries. For instance, when Michelin decided to enter Mexico, its Mexican and American managers were offered cultural training together. This allowed them to share their experiences and strengthened their inter-personal bonds. Developing a culturally sensitive culture called for significant time investment. But Michelin reaped benefits like employees‟ trust and strong inter-personal relations with its workers. Companies must sensitize themselves and their managers to the diverse cultural norms before setting up operations in new markets. The case of Michelin illustrated ‘cultural adaptation and overcoming barriers to cultural adaptation’. Cultural training could be critical for companies that aspired to succeed on the global business platform. Discussion Questions 1. What reasons contribute towards cultural disparities between local employers and expatriates? (Hints: lack of faith in the new management-lack of cultural awareness and understanding) 2. Explain how managers at Michelin benefitted by adapting to the cultural difference? (Hints: training to develop cultural sensitivity-training from executive coaches specialized in cultural issues) Course Reference: Concept- CulturalAdaptation/Unit 6-International Organizational Behavior / Subject- Organizational Behavior Sources: i. Erin Meyer and Sapna Gupta, “Leading Across Cultures at Michelin (A), INSEAD, 2009. ii. Jean Lee, Jenny Zhu, Jane Xieand Rebecca Chung, “Michelin Overcame Cultural Gulf at Shanghai Joint Venture,” Financial Times, July29, 2013. iii. Karel Cool, “The Competitiveness Challengeof European Manufacturers: The Case of Michelin,” INSEAD Blogs, November 7, 2012. iv. Luc Minguet, Eduardo Caride, Takeo Yamaguchi and Shane Tedjarati, “Voices from the Front Lines,” Harvard Business Review, September 2014. OtherKeywords: Global HRM, HRM 12
  • 17. 7 Can Pooja Jain Micromanage Luxor with her Personality Traits? The Luxor Group, a family-run, manufacturer and marketer of pens and writing instruments in India, was founded by Davinder Kumar Jain (D K Jain) in 1963. In 2008, the company began diversifying into sectors like hospitality, real estate and retail. In 2014, the company had started eyeing the fast-moving consumer goods (FMCG) sector. Luxor exported to nearly 85 nations worldwide and had a workforce of about 2500 employees in 2014. Pooja Jain (Pooja), daughter of DK Jain and head of Luxor‟s writing instruments‟ business, steppedin as the Executive Director of the Group after her father‟s demise in 2014 (Refer to Chart 1 for personality traits of Pooja). Chart 1: Pooja Jain‟s Personality Traits Adapted from Shabana Hussain, “Pooja Jain is Rewriting Luxor‟s Future,” Forbes India, September 2, 2014 Pooja preferred to micromanage all elements of Luxor‟s business, contrary to her father‟s participatory approach. Company veterans were apprehensive whether Pooja would be able to shoulder the mantle of the Luxor Group with her personality traits (Refer to Chart 2 for apprehensions about Pooja‟s Leadership). Chart 2: Apprehensions Surrounding Pooja‟s Leadership Apprehensions Indicators Rushing in to Worked 24X7 prove her worth Called employees at odd hours including on weekends. For instance, employees received calls at 1 a.m. to brainstorm new ideas or general business. Over-ambitious  Had set a goal of Rs.2, 000 crores for the writing instruments‟ business alone. goals Expected a 4 times revenue increment within 3 years. However, the industry growth rate had dropped to 5% p.a. in 2014 from 10% p.a. in 2009 which would make this a challenging feat Adapted from Shabana Hussain, “Pooja Jain is Rewriting Luxor‟s Future,” Forbes India, September 2, 2014 Pooja Jain had used her „personality traits’ like conscientiousness and result-oriented approach to manage Luxor after her father‟s sudden demise. An individual‟s personality could have a positive or negative impact on an organization‟s performance. Luxor‟s new Executive Director could play a major role in determining the company‟s fortune. Discussion Questions 1. What personality traits should a business leader display? (Hints: analytical skills-conscientiousness-goal oriented) 13
  • 18. 2. What apprehensions surrounded Pooja Jain‟s ability to lead the Luxor Group? (Hints: haste to prove worthiness-over-ambitious Goals) Course Reference: Concept-Meaningof Personality/Unit 7-Personality and Attitudes/Subject-Organizational Behavior Sources: i. Purvi Malhotra, “Beauty on the Go,” India Today, November 7, 2008. ii. Shabana Hussain, “Pooja Jain is Rewriting Luxor‟s Future,” Forbes India, September 2, 2014. iii. “Luxor to Diversify its Biz: Foray in Other Consumer Segments,” TheEconomic Times, May 23, 2008. OtherKeywords: HRM, Leadership and Change Management 14
  • 19. 8 Kailash Satyarthi : A Story of Motivation Kailash Satyarthi, born in 1954, was an Indian activist dedicated to the cause of protecting children‟s rights. Satyarthi held a degree in electrical engineering. In 1980, he gave up his job as an engineering lecturer and founded „Bachpan Bachao Andolan‟ (BBA), a non-profit organization. By 2014, under Satyarthi‟s leadership, BBA had rescued more than 80,000 children from the clutches of child labor across 144 nations worldwide (Refer to Chart 1 for BBA‟s Initiatives). Chart 1: BBA‟s Initiatives BBA was the first civil society campaign against child exploitation in India. It adopted a „raid and rescue‟ approach where the police and BBA activists together raided factories involved in child labor BBA introduced its „Bal Mitra Gram‟ (BMG) program to rescue children from child labor and enroll them into schools. O There were more than 100 BMGs across India by 2014 O BMG program had made about 365 villages as children friendly across 11 Indian states by 2014 Adapted from Harriet Alexander and Dean Nelson, “Nobel Peace Prize: Who Is Kailash Satyarthi?,” The Telegraph, October 10, 2014 Even as a young child, Satyarthi was disturbed by the state of those kids who had to work while he attended school. This motivated him to start a football club to pay the school fees of underprivileged children and to start a book bank. In 1994, Satyarthi founded Rugmark, later known as GoodWeave International, a network of non-profit companies, dedicated towards putting an end to child labor in the rug manufacturing industry. He led the „Global March Against Child Labor‟ across 103 nations in January 1998. This was a global event uniting NGOs, trade unions, etc. in their fight against child labor. Over his 30 years long crusade against child labor, Satyarthi encountered numerous perils including break-ins and threats to self and family members. For instance, in 2004, Satyarthi and his fellow activists were brutally attacked while trying to rescue trafficked Nepalese girls from an Indian circus. Despite being injured, Satyarthi continued his protest by going on a hunger strike. His efforts persisted till all the girls were rescued. Satyarthi had received many awards for his persistent efforts including the Aachener International Peace Award (1994), Robert F. Kennedy Human Rights Award (1995) and the Medal of Italian Senate (2007). On October 10, 2014, Satyarthi was jointly awarded the Nobel Peace Prize along with Malala Yousafzai for his relentless efforts towards liberating children from suppression. The case of Kailash Satyarthi illustrated the concept ‘achievement motive’, where a person desired to perform excellently to handle complex situations.Here Satyarthi relentlessly worked to liberate children from child labor. Satyarthi‟smotivationto protect children‟s rights won him numerous awards including the Nobel Peace Prize in 2014. Discussion Questions 1. How can an individual fulfill his achievement motive? Discuss in the light of Kailash Satyarthi‟s accomplishments. (Hints: motivated to start a football club to help underprivileged kids pay their schoolfees - gave up job as an engineering lecturer to start BBA-started Rugmark with the aim of ending child labour) 2. Discuss the challenges in fulfilling a social cause like protection of children‟s rights. (Hints: break-ins, arson attacks, etc.-physical threat) Course Reference: Concept-Achievement Motive/Unit 8-Motivation/Subject-Organizational Behavior Sources: i. “KailashSatyarthi: A Profile,” Business Standard, October 10, 2014. ii. “The Fight for Protectionof Children has to Continue,” Business Standard, December 16, 2014. iii. Harriet Alexanderand Dean Nelson, “Nobel Peace Prize: Who Is Kailash Satyarthi?,” The Telegraph, October 10, 2014. Other Keywords: HRM, Leadership and Change, Organizational Development 15
  • 20. 9 Kiran Mazumdar-Shaw: Changing Perceptions about Women as Entrepreneurs in India Kiran Mazumdar-Shaw, an Indian entrepreneur, was the founder and Chairman of Biocon Limited, India‟s largest Biopharmaceutical Company. Biocon was founded in 1978 at Bangalore. Kiran started her professional journey as a trainee brewer at Melbourne‟s Carlton and United Breweries (Refer Chart 1 for Kiran‟s Professional Rise). Chart 1: Kiran‟s Rise as a Successful Woman Entrepreneur “The Initial Years” Kiran was encouragedby herfather,a brewer,to study fermentation science and to undertake training to become a brew master. Was perceived as an unconventional field of study and work for women Was the only woman studying Malting and Brewing at Ballarat College of Advanced Education, Australia, at the time. She topped her class. She started her career as trainee brewer at Melbourne. Between 1975-1977, worked as technical consultant and technical manager at brewery companies in Calcutta and Baroda, respectively. Explored new prospects in cities like Delhi and Bangalore but was unsuccessful. “The Birth of Biocon” Started exploring the International market and was offered a job in Scotland. In a chance encounter, Kiran met Leslie Auchincloss, founder of Biocon Biochemicals Limited (BBL), Ireland, before she could move to Scotland. Leslie was searching for an Indian entrepreneurto help set-up an Indian subsidiary. Kiran undertookthe assignment Worked briefly as a Trainee Manager at BBL, Ireland, to understand and learn the business better. Kiran returned to India and started Biocon Limited Adapted from various sources Kiran encountered perceptualbarriers as a woman entrepreneur in India (Refer to Chart 2 for the Perceptual Barriers). Chart 2: Perceptual Barriers and Kiran‟s Approach of Overcoming Them Perceptual Barriers Overcoming the Perceptual Barriers The Existence of Gender Barriers: 1. Had the family support to pursue her career in a field 1. Absence of female role model in the considered unconventional for women- Indian corporate scenario entrepreneurship 2. Job of brew master was perceived as 2. Started Biocon in the garage of her rented home in a „man‟s job‟ in the Indian market. Bangalore with an initial investment of INR 10,000. The Existence of Sexism: 3. Instead of getting de-motivated, she made use of the Women had limited opportunities and available resources like home-grown innovation. 4. Had the ability to experiment and was open towere not given adequate chances The Credibility Challenge: change. 5. Shifted Biocon‟s focus from enzymes toGiven her young age (was 25 years when Biopharmaceuticals in the 1990s when the companyshe started her business) banks were decided to go global.reluctant to fund her venture. Adapted from various sources 16
  • 21. Despite these perceptual barriers against women, Kiran‟s success as a woman entrepreneurpresented her as a role model: 1. In 2014,Kiran was appointed as a Director on Infosys‟s Board of Directors. 2. Was appointed as the Chairman of Indian Institute of Management (IIM), Bangalore, in 2014. 3. Under her leadership Biocon recorded a profit of nearly INR 4 million in 2014. 4. Forbes ranked her as the 92nd Most Powerful Woman in the world in 2014. 5. Germany‟s Kiel Institute awarded Kiran the Global Economy Prize for Business in 2014. ‘Perception’referred to the cognitive process where individuals interpreted situations based upon their senses andstimulation.Despite the perceptualbarriers against women in the business field, Kiran emerged successful as a woman entrepreneur and served as a role model in the Indian corporate arena. Discussion Questions 1. What perceptual barriers did women entrepreneurs in India have to face? (Hints: gender barriers-existence of sexism-credibility issues) 2. How did Kiran succeed as a woman entrepreneur despite the perceptual barriers against women in corporate India? (Hints: family support-personaldetermination-ability to experiment) Course Reference: Concept- Perception/Unit 9-Perception/Subject-Organizational Behavior Sources: i. Bhakti Bapat Mathew, “Women Must Find the Strength to Soar,”www.livemint.com, May 12, 2013. ii. “Kiran Mazumdar0Shaw Receives Award from Germany‟s Kiel Institute,”www.business-standard.com, June 24, 2014. iii. Catherine Lee, “Biocon‟s Kiran Mazumdar-Shaw on Female Entrepreneurship in India,” www.marketmagazine.net, May 12, 2013. OtherKeywords: HRM, Leadership and Change Management 17
  • 22. 10 KV Kamath Used Learning as a Tool to Transform ICICI Bank ICICI Bank, a multinational banking and financial services firm based in India, was headquartered in Mumbai. It was set-up by the Industrial Credit and Investment Corporation of India (ICICI), in 1994, as its fully owned subsidiary. In 2002, ICICI, the parent company merged with ICICI Bank, its subsidiary and took on the latter‟s identity. It was the largest private sector bank in India in 2014. K.V. Kamath joined ICICI‟s Project Finance Division in 1971 as a management trainee. In 1996, Kamath took over as the CEO and Managing Director (May 1996 till April 2009) of the Bank. Kamath used „learning‟ as a tool to transform ICICI Bank into a global financial services and banking giant (Refer to Chart 1 for Kamath‟s Learning and Implementation Method). Chart 1: Kamath‟s Learning and Method of Implementation WHAT TRIGGERED WHAT TRIGGERED THE WHAT TRIGGERED THE THE LEARNING? LEARNING? LEARNING? “Curiosity and the “The need for constant learning” “The realization that learning is imporatnce of reflection”. ugly” Kamath learnt the During a seminar in New York, importance of „talent Kamath learnt about the concept Kamath learnt about the „90-day development‟ from of „parking‟ while reading a rule‟ (concept designing, product Hindustan Lever, an Indian magazine article. development, testing and take to consumer goods company. market within 90 days). Hindustan Lever‟s ability to On reaching London, he called the produce an „entrepreneurial This concept helped him learn Mumbai office and asked the team leader‟ every 5-10 years handling a technology project to the art of dealing with stagnating inspired Kamath to nurture immediately apply the 90-day employees. and build talent within the rule. bank. Employees who had stagnated In the 6 months that followed, the bank undertook nearly 10-12and were acting as blockages in projects, all of which were the bank‟s organization chain successfully achieved using this were parked in new spots. rule. The parking approach helped create a „blockage-free‟ organizational chain at the bank. Adapted from KV Kamath, “KV Kamath on How to Manage Change”, www.rediff.com, February 9, 2005 Kamath briefly parted ways with the bank in 1988 to join the Asian Development Bank (ABD), Manila.  The nature and working of emerging markets.   To handle operations on a global scale in the international market.  New processes in the field of banking. AtABD,Kamathlearnt: In 1996, Kamath re-joined ICICI bank as CEO and MD. Kamath put his learning at ABD to use in the  He initiated structural changes and created new operations at the bank  He brought about strategic initiatives to introduce flexibility in the functioningof the bank Indianmarket: 18
  • 23. Under Kamath‟s leadership:  ICICI bank became the first Indian financial institution to be listed in the NYSE in 1999.   The Bank introduced ATMs in 2003.This step played a major role in boosting the Bank‟s growth rate to about 180% in that year.   The Bank‟s total assets grew from Rs. 21,000 crores in 1996 to Rs. 3,80,000 crores in 2009,the year when the CEO baton was passed on to Chanda Kochhar.   ICICI Bank became the first bank in India to go online. KV Kamath had put his ‘learnings’ from various professional experiences to play at ICICI Bank which helped it emerge as the largest private sector bank in India. Organizations stood a chance to gain by displaying a willingness to learn new skills and knowledge. Discussion Questions 1. Discuss the significance of learning in the success ofan organization. (Hints: understand the need for new processes/structures,etc.-introduce new operations to meet market demands) 2. What role did Kamath‟s leadership play in ICICI Bank‟s success? (Hints: the first Indian financial institution to be listed in the NYSE-first Indian bank to go online- significant growth in assets) Course Reference: Concept-Significance of Learning/Unit 10-Learning/Subject-Organizational Behavior Sources: i. Charles Assisi, “Making a Strong Case to Live the Learned Life,” Livemint, December 17, 2014. ii. KV Kamath, “KV Kamath on How to Manage Change”, www.rediff.com, February 9, 2005. iii. “How KV Kamath BuiltICICI into a Global Giant”, www.rediff.com, June 9, 2007. OtherKeywords: HRM 19
  • 24. 11 A Case of Employee Protection: The Pixar Story Pixar Animation Studios (Pixar) a US based, Academy Award winning, computer animation film studio was set-up in 1979 as a part of the computer graphic division of Lucasfilm Ltd. to develop imaging technology and its own imaging computers. Pixar had brought to life many notable animated feature and short films. The company had produced a continuous streak of hit films (The Incredibles, Cars, etc.) and revived the art of animation in the movie industry. By 2014, Pixar was a multibillion dollar company and one of the leading producers of animated films worldwide. But Pixar‟s initial years were far from successful. In 1985 the company, then known as the Computer division of Lucasfilm, was surrounded by financial troubles. George Lucas (Lucas), the founder, was uncertain about the financial worth of computer animated movies and recruited Dough Norby (Norby) as President to deal with the situation. Norby decided to bring about layoffs across the division. Ed Catmull and Alvy Ray Smith, leaders of the computer division, were advised to choose the names of employees to be laid off. Both these leaders kept stalling the matter. Catmull suggested that sacking employees would diminish the value of the computer division which could be profitably sold-off instead. Norby was determined to see the layoff through. Catmull and Smith were finally ordered to come up with a list of employee names. Both these leaders agreed upon two names – Ed Catmull and Alvy Ray Smith. Then the management decided not to fire any of the employees. The bold steps taken by the leaders to protect the welfare of employees were highly appreciated. Subsequently, in 1986, the computer division of Lucasfilm was bought by Steve Jobs for $5millions and named Pixar. His idea was to build it into a computer company. The passion of animators of the erstwhile computer division made Pixar into an animation powerhouse. The success of Toy Story in 1995 marked the beginning of Pixar‟s promising future. Subsequently, 12 feature films by the company generated nearly $7.2 billion globally. In 2006, Pixar was bought by The Walt Disney Company for $7.4 billion and Catmull was named the President. Businessleadersmust be empathetic towards the needs andwelfare oftheir employees.The case of Pixar illustrated „leadershipand leadershipskills’.It was not possible forleaders to be truly effective and efficient unless they focused on honing their human skills. DiscussionQuestions 1. Discuss the measures taken by Pixar leaders Catmull and Smith, to protect their employees. (Hints: suggestion to sell the computer division instead of firing employees- offering to sacrifice their own jobs to save the jobs of their team members) 2. Discuss the role of human skills in creating effective leaders. (Hints: creates empathy- garners appreciation- builds employee morale) Course Reference: Concept-Leadership Skills/ Unit 11-Leadership / Subject-Organizational Behavior Sources: i. Daniel Terdiman, “With Pixar, Steve Jobs Changed the FilmIndustry Forever,” www.cnet.com, October 6, 2011. ii. Robert I. Sutton, “Pixar Lore: The Day Our Bosses Saved Our Jobs,” HBR Blog Network, January 10, 2011. iii. “The Pixar Timeline,” Pixar.com. OtherKeywords: HRM, Leadership and Change 20
  • 25. 12 The Best Office Perk From WordPress Automattic, Inc. (Automattic), a web development firm established in 2005 was most notable for WordPress (a free and open source blogging platform). Automattic had created a buzz in the business world with its unconventional work culture of a 100% distributed workforce. Its global workforce, of over 260 employees, either worked from home or from wherever else they wished to work from, whenever they wanted. The company was not against the idea of having a conventional office space. But it preferred to focus its efforts on hiring self-motivated candidates (preferably with experience in freelancing or being self- employed) instead of creating a lavish office. They understood employees‟ need for autonomy which made their location of work insignificant. All official communication between the employees happened online. Instead of relying on emails, employees collaborated and interacted on internal blogs, in chat rooms and Skype, etc. A special type of blog, named P2, further facilitated employee interaction and allowed them to catch up on any activity they might have missed. Employees were equipped with the latest Apple devices like MacBook and a big monitor. All newly hired employees were given $2,000 in order to improve their home offices. Employees also received reimbursements in case they wished to get a desk at a co-location centre (type of data centre providing space, power and bandwidth for rent). The fortune saved on creating plush offices had been dedicated to travel and meeting budgets for its employees. Teams were free to meet for a „hack‟ week (time away from day-to-day work to collaborate and develop ideas employees were passionate about) at any location in the world, whenever they wanted. The company also paid for an annual „Grand Meetup‟ at exotic locations like San Francisco, Quebec, Mexico, etc. The distributive and decentralized workforce model had helped the company to attract and hire some of the best engineering talent worldwide. It had also kept office politics at bay.  It may curb creativity  It may need a considerable amount of adjustments and allowances especially from managers   It required a significant level ofself-motivation from employeesDespitethesebenefits,expertswereapprehensiveaboutthebenefitsofremote work culture: Organizations must strive towards hiring the right employees and should create and nurture a culture based on mutual trust. The case of Automattic illustrated „employee empowerment and participation’. Empowering employees and encouraging participation based on mutual trust could be vital for a company‟s success. DiscussionQuestions 1. Discuss the measures taken by Automattic to ensure employee empowerment and participation. (Hints: created a distributed workforce-recruited self-motivated candidates-provided monetary assistance to create conducive work environment at home) 2. Discuss the pros and cons of remote/distributed work culture. (Hints: money saved on offices was dedicated towards travel and meeting budgets that further motivated employees-fear of curbing creativity-might require significant adjustments from the management) Course Reference: Concept-Empowerment /Unit 12-Empowerment & Participation / Subject-Organizational Behavior Sources: i. Aimee Groth, “The Makers of WordPress Learned Years Ago that the Ultimate Office Perk is not Having an Office,” QUARTZ India, September 15, 2014. ii. Julie Bort, “Great Place to Work: At AutomatticEmployees All Work From Home and Travel to Exotic Locations,” Business Insider, August 8, 2013. iii. Rachel Emma Silverman, “Step Into theOffice-Less Company,” TheWall Street Journal, September 4, 2012. iv. Scott Berkum, “How WordPress Thrives with a 100% Remote Workforce,”www.hbr.org, March 15, 2013. OtherKeywords: Global HRM 21
  • 26. 13 Walmart‟s New Dress Code: Triggering Employee Conflict? Walmart Stores, Inc., well-known as Walmart, a US based multinational retail giant was founded by Sam Walton in 1962 and was headquartered at Arkansas. In August 2014, Walmart announced its decision to introduce a new dress code – khaki or black trousers and blue or white collared polo shirts - effective September 2014. Employees were expected to bear the expense for these new outfits, estimated to cost $40-$50 per annum. Walmart would continue to provide its mandated branded blue vest for free. Employees could either buy new clothes or use existing outfits that met these new specifications. They could buy these new outfits at Walmart stores using „employee discount‟ or at any other store. Walmart‟s decision irked employees, especially those at the lowest end of the pay spectrum (Refer to Chart 1 for Employee‟s objection about the new dress code and the company‟s justification). Chart 1: Walmart‟s New Dress Code  Employees‟ Objections  Company‟s Justifications Employees expected Walmart to Legally, companies were expected to pay if they required bear the cost of the newly employees to wear branded clothes or outfits that could not introduced dress code.  be worn outside of work. Collared shirts and khakis were outfits that could be worn   elsewhere. Expecting workers to pay for Employers were expected to bear the expense if the cost of their new outfits would put the dress and its cleaning fees caused a worker‟s wage to additional burden on the already drop below $7.25/hour. Full-time employees at Walmart pressed budgets.  earned about $12.92/hour.  Employees felt that a change in The new dress code was introduced to impart a professional dress code, by burdening its touch and to distinguish Walmart‟s employees from employees, was not a necessary customers dressed in khakis and blue or white t-shirts. action. Adapted from Deborah Weinstein, “What Employers Should Learn from Wal-Mart‟s Dress Code Controversy,” Knowledge@Wharton, September 22, 2014 Walmart could find itself embroiled in class action suits if it failed to resolve this conflict. Legal experts suggest that Walmart should either recall its new dress code or work out a settlement with its employees. The case of management-employee disagreement at Walmart illustrated ‘conflict caused due to organizational change’. The decision to introduce a new dress code was viewed differently by the organization and its employees. Employers must exercise caution while formulating and implementing policies that could impact its employees in a negative manner. Discussion Questions 1. Discuss the reasons that could trigger employee conflict in an organization. (Hints: change in company policy- passing on the financial burden of a policy change on the employees) 2. What objections did employees raise over Walmart‟s new dress code? (Hints: employees were expected to bear the cost of the new dress code- felt it was not a necessary action) Course Reference: Concept- DestructiveConflict/ Unit 13- Conflict, Negotiations & Inter Group Behavior/Subject- Organizational Behavior Sources: i. Deborah Weinstein, “What Employers Should Learn from Wal-Mart‟s Dress Code Controversy,” Knowledge@Wharton, September 22, 2014. ii. Erik Sherman, “How Walmart‟s „Dress Code‟ Costs Employees,” Forbes, September 8, 2014. iii. Jillian Berman, “Walmart Workers Complain they Can‟t Afford New Dress Code,” The Huffington Post, October 9, 2014. OtherKeywords: HRM 22
  • 27. 14 Google Could Upshoot Innovation through Group Formation Google, a US-based MNC, founded by Larry Page and Sergey Brin in 1998, offered internet based services and products. It had around 47,756 employees as of 2013, out of which 10,000 employees worked as software developers in 40 offices. Larry Page tookthe charge ofCEO at Google for second time in 2011. Page reorganized (Refer to Chart 1 for Page‟s Reorganization Plans) the original group called as “OC” (Operating Committee) to a new team called“L Team” (Larry Team). He revamped the existing groups andcreatedL team to attain some specific organizational goals. His motive in reorganizing and creating the group was to be more competitive in the battle against companies such as Apple Inc and Facebook.  Removing inefficiencies   Coordinating different product groups   Developing a self-driven team   Giving autonomy   Foster innovation   Diverting resources to big projects   Speed up decision making   Improve executionSpecificorganizational goals to be attained: Combining Groups  Merged the groups working on computer- operating software and Google's Chrome Web browser with the team of Android mobile operating software   The work of software developerswas simplified by combining two different platforms   The group was initiated to develop an app that converted Android apps to run on Chrome   Anticipating the future demand,the groups focus was on Android Chart 1:Page‟s Reorganization Plans Reorganizing Groups  Split the team of mapping and commerce unit into two separate groups   The mapping group was made a part of search team   The commerce unit group was included in advertising products groups   The commerce teamwas expected to focus on selling the ad space on Google sites Forming New Group  Formed a new group called "L Team" ("L" means Larry)   Executives who were less successfulto fit the Google products under one umbrella were moved to newprojects   Executives who were successfulin defining the products fit were taken into L-Team   The team directly reported to the CEO and focused on developing new products (Resultant: Google+) Adapted from Efrat Amir,“Page Shakes Up GoogleLeadership Team Further,” Wall Street Journal, March 14, 2013 Page‟s objective behind reshaping the teams and forming of L-Team was to encourage quick innovation and offer a unified service platform to the customers. 23
  • 28. Different types of ‘groups are formed’ to achieve specific results in organizations. Page could foster innovation in Google by combining and re-organizing teams, allocating new tasks and responsibilities and by developing a new team called L-Team. Discussion Questions: 1. Explain the reasons for and goals to be achieved in formation of groups? (Hints: achieve specific goals-removing inefficiencies- speed up decision making) 2. Name the internalfactors that forcedLarry Page to reorganize groups in Google? (Hints: to be more efficient-to be able to compete against competitors like Apple) Course Reference: Concept-Natureof Groups/Unit – Foundations of Group Behavior/ Subject – Organizational Behavior Sources: i. “There‟s A Pretty Big Tension In How Larry Page Is Running Google,” Business Insider, March 15, 2013. ii. Efrat Amir, “Page Shakes Up Google Leadership Team Further,” Wall Street Journal, March 14, 2013. iii. Oreskovic Alexei, “Exclusive: Google CEO‟s Inner Circle: Meet theL Team,” in.reuters.com, San Francisco, December 17, 2011. OtherKeywords: Organization Development 24
  • 29. 15 Team Building: Menlo Innovations‟ Formula for Success Menlo Innovations, well known as Menlo, a software design and development firm was incorporated in 2001. It was headquartered at Ann Arbor, Michigan. Menlo was known for its culture of innovation and experimentation. It had an open workspace devoid of physical barriers like cubicles. Even the CEO, Richard Sheridan, found himself seated next to his staff members. In 2012, Sheridan and his teammembers conducted over 240 tours, showcasing Menlo‟s culture to representatives from establishedplayers like Toyota andThomson Reuters. (Refer to Chart 1 for the details of Menlo‟s collaborative team culture): Chart 1: The Collaborative Team Culture @ Menlo Adapted from Richard Sheridan, “Joy, Inc.: How We Built a Workplace People Love,” strategy-business.com, 2013 Despite its high-involvement culture, experts had voiced their apprehensions about Menlo‟s team- building approach (Refer to Chart 2 for concerns about Menlo‟s collaborative work culture). Chart 2: Menlo‟s Collaborative Work Culture & Concerns Collaborative Work Culture CONCERNS Open-Collaborative Workspace Did not use any of the proven  Pair Programming'-No employee Employee techniques like stock ownership worked alone Compensation and profit sharing for rewarding its employees Employee-Friendly Work Environment Management tactic of making  The company allowed its employees to Real Intention employees work hard without behind the adequately compensatingand bring their babies, known as 'Menlo „Joyful, Team‟ rewarding them for the same  Babies' to work Culture 40 hours work weeks Self-Managed Teams Not feasible for established and  Employees were encouraged to work on Applicability large organizations the simplest things that could possibly work Adapted from Leigh Buchanan, “Taking Teamwork to the Extreme,” Inc..com, April 18,2013 25
  • 30. ‘Building effective teams’ served as the secret ingredient in Menlo Innovation‟s success story. By creating a bossless culture, Menlo encouraged its employees to continuously communicate and collaborate witheachother.Menlo‟sapproachofempowering its employees had beeninstrumental in its success. Discussion Questions 1. How did Menlo succeed in creating a collaborative work culture? (Hints: recruit the right candidates-adopted a problem-solving approach-a hierarchy free organization structure) 2. Discuss the drawbacks of the team-building approach. (Hints: doubts overthe real intention behind creating happy teams- feasibility issues) Course Reference: Concept-Essentialfor Building Effective Teams/ Unit 15-Understanding Work Teams/ Subject- Organizational Behavior Sources: i. John Baldoni, “Menlo Innovations: Putting the Joy Into Work,” Forbes, January 7, 2014. ii. Leigh Buchanan, “Taking Teamwork to the Extreme,” Inc..com, April 18,2013. iii. Richard Sheridan, “Joy, Inc.: How We Builta Workplace People Love,” strategy-business.com, 2013. OtherKeywords: Global HRM 26
  • 31. 16 Elements of Informal Organization at Google Google, a multinational company providing Internet-related services and products like search and online advertising technologies, was founded by Stanford University PhD students, Larry Page (Page) and Sergey Brin (Brin). It was incorporated in 1998 and was headquartered at Mountain View, California. Google encouraged its employees, popularly known as Googlers, to pose work and company related queries directly to Page, Brin or any other employee or superior, irrespective of their designation (Refer to Chart 1 for the Flat Organization Structure @ Google). Employees were attracted to the company‟s wafer-thin hierarchical structure. Google was ranked first in Fortune magazine‟s „Best Companies to Work For‟ in 2007,2008, 2012 and 2013. Chart 1: The Flat Organization Structure @ Google Adapted from Karl Moore and Kylie, “The Decline but Not Fall of Hierarchy – What Young People Really Want,” Forbes, June 14, 2011 Despite its benefits, Google‟s flat organization structure suffered from certain drawbacks (Refer to Chart 2 for the pros and cons of Google‟s organization structure). 27
  • 32. Chart 2: Pros & Cons of Google‟s Flat Organization Structure PROS CONS Promoted employee empowerment and employee Required a great deal of adjustment from both, engagement the employer and the employee Focused on work instead of designations Could lead to a chaotic work environment Helped in creating greater transparency and a Sharing confidential information like company sense of ownership among employees roadmaps and product launch plans could lead to information leakage which could cost the company in the long-run Adapted from Karl Moore and Kylie, “The Declinebut Not Fall of Hierarchy – What Young People Really Want,” Forbes, June 14, 2011 Experts opined the benefits of a hierarchical organization structure could not be totally over-looked. 1. Relevant in times of crisis : Managers/Superiors could use their past experience to guide their juniors and relatively less experienced sub-ordinates in handling a crisis situation more efficiently 2. Fostered a sense ofaccountability: When sub-ordinates were required to report to a higher authority it would drive a sense of responsibility and accountability. ‘Informal Organizations’ referred to firms where power was derived from personal characteristics instead of the position/designation of an individual. Google adopted a hierarchy-free, fun-filled work environment where employees were not expected to adhere to conventional norms like dress codes. Discussion Questions 1. Discuss the characteristics of an informal organization. (Hints: flat organization structure-open communication-high level of employee involvement) 2. What were the pros and cons of Google as an informal organization? (Hints: focus on work not designations-greatertransparency-could lead to a chaotic work environment Course Reference: Concept-Natureof Informal Organizations/ Unit 16-Informal Organizations/ Subject- Organizational Behavior Sources: i. James B. Stewart, “Looking for a Lesson in Google‟s Perks,” TheNew York Times, March 15, 2013. ii. Karl Mooreand Kylie, “The Declinebut Not Fall of Hierarchy – What Young People Really Want,” Forbes, June 14, 2011. iii. “Our History in Depth,” www.google.co.in. OtherKeywords: Global HRM 28
  • 33. 17 Holacracy @ Zappos Zappos.com, popular as Zappos, a Las Vegas based online clothing and shoe retailer, was founded in 1999 and was acquired by Amazon.com in 2009. Zappos had about 1,500 employees in 2014. In late 2013, the company decided to bid adieu to its conventional hierarchical organizational structure. It adopted a holacratic organizational design instead. The decision to adopt a holacratic organizational design was taken to save Zappos from becoming unwieldy and inflexible as its business and workforce expanded (Referto Chart 1 for Zappos‟ Holacratic Organizational Design).Holacracy:Based on the Greek term „holon‟ which referredto units that were self-reliant yet dependent on the greater whole, of which they were a part. Chart 1: Zappos‟ Holacratic Organizational Design Self-Governing Importance on 'Job Roles' Overlapping Circles with Even Power Distribution 400 Circles Employees took up Multiple Roles Holacratic Design Removal of Designation Restricted Positional Power. Employees Took Accountability Voiced Grivence At the Frequent 'Town Halls Adapted from Steve Denning, “Making Senseof Zappos and Holacracy,” Forbes, January 15, 2014 Till 2014, Zappos was the largest company to adopt a holacratic structure. Despite its many advantages, holacracy suffered from a few drawbacks (Refer to Chart 2 for the pros and cons of holacratic organizational design). Chart 2: Pros & Cons of Zappos‟ Holacratic Organizational Design PROS CONS Promoted employee empowerment Required a great deal of adjustment from both, the employer and the employee Focused on work instead of people Holacracy may seem impractical and unreal. For instance, it may not be feasible to design meetings to instantly redress employee complaints/issues Helped in creating greater transparency Lacked a „human-centric‟ approach as employees could not use designations as an excuse for non-performance. Adapted from various sources The case of Zappos illustrated ‘types of organizational design’ which defined the framework within which employees functioned. Holacracy was one of the new emerging organizational designs. The decision of adopting a holacratic structure may prove critical in deciding Zappos‟ fate. 29
  • 34. DiscussionQuestions 1. What were the characteristic features of Zappos‟ new holacratic organizational design? (Hints: self-governing-frequent Town Halls-even power distribution-no designations) 2. Discuss the advantages and disadvantages ofthe holacratic organizational design? (Hints: promoted employee empowerment-focused on work instead of people-lacked human-centric approach) Course Reference: Concept-Types of Organizational Design/ Unit 17-Foundations of Organizational Structure/ Subject-Organizational Behavior Sources: i. Jena McGregor, “Zappos Goodbye to Bosses,” The Washington Post, January 3, 2014. ii. Steve Denning, “Making Sense of Zappos and Holacracy,” Forbes, January 15, 2014. iii. “The Holes in Holacracy,” The Economist, July 5, 2014. OtherKeywords: Global HRM, HRM 30
  • 35. 18 The Decision Rationality behind Appointing Shikha Sharma @ Axis Bank Axis Bank Limited, formerly known as UTI Bank, provided financial services to customers including retail businesses and large and mid-sized companies. Axis Bank headquartered in Mumbai, India had about 2,400 branches and nearly 12,900 Automated Teller Machines (ATMs) countrywide in 2014. It was the 3rd largest private bank in India in 2014. In 2009, majority of the Board members at Axis Bank arrived at the decision to appoint Shikha Sharma, Managing Director (MD) and CEO at ICICI Prudential Life Insurance, as Axis Bank‟s newCEO and MD. This decision was not supported by Axis Bank‟s outgoing Chairman andMD, PJ Nayak. Nayak was unable to stop the decision to appoint Shikha as all the Directors, barring him, supported her hiring (Refer to Chart 1 for arguments supporting and negating the decision to hire Shikha Sharma‟s). Chart 1: Arguments Supporting and Negating Shikha Sharma‟s Recruitment Decision Making Internal Candidates Lacked the Desired 'Well -Rounded' Experience Absence of a Reasons Shortlisting of Suitable Supporting potential successor Successor within Recruitment withoutseeking the Bank Decision Board's approval Shikha's Strategic Decision Making Ability ICICI Pru continued to be the 'Market Leader' under Shikha's Leadership ExcellentInternal Leadership An Insider Should be Considered Reasons Felt Shikha OpposingNayak lacked relevant Recruitmentpreferred banking DecisionHemnat Kaul experience and MM Agarwa l Adapted from Sourav Majumdar, “The Quiet Architect: Shikha Sharma has MagicallyTransformed Axis Bank in a Short Span,” Forbes India, October 13, 2014 bagged the „Best CEO Private Sector‟ award. Under her leadership, Axis Bank:  Featured in Forbes Asia‟s „Fab 50‟.   Emerged as both,a corporate and retail institution.   Witnessed 44% (year-on-year) growth in retail term deposits,in the June 2014 quarter.  Recorded 18% growth in its net profit (year-on-year). In2014,Shikha- Recruiting Shikha Sharma as Axis Bank‟s new CEO and MD illustrated the case of ‘decision rationality’.Organizations were often expected to choose a course of action from a set of available alternatives. The top management at Axis Bank evaluated both,the internal and external candidates and arrived at a decision that proved beneficial for the Bank. 31
  • 36. Discussion Questions 1. Discuss the decision rationality process. (Hints: problem definition-identification of key criteria-awareness of alternatives-evaluation of alternatives-choosing the alternative with the highest value) 2. Discuss the decision rationality behind Shikha Sharma‟s appointment as the CEO at Axis Bank. (Hints: need for a suitable successor-absence ofa suitable candidate internally-Shikha‟s strategic decision-making ability) Course Reference: Concept-Decision Rationality/Unit 18-Decision Making/ Subject-Organizational Behavior Sources: i. “Nayak Quits After Axis Bank Appoints Sharma as MD,” Business Standard, April21, 2009. ii. Shyamal Majumdar and Sudeep Jain, “Lunch with BS: Shikha Sharma,” Business Standard, February 16, 2010. iii. Sourav Majumdar, “The Quiet Architect: Shikha Sharma has MagicallyTransformed Axis Bank in a Short Span,” Forbes India, October 13, 2014 . OtherKeywords: HRM 32
  • 37. 19 The Power Games @ BCCI The Board of Control for Cricket in India, popularly known as the BCCI, was the national governing organization for cricket in India. BCCI was founded in 1928 and was headquartered in Mumbai, India. It was a member of the International Cricket Council. This membership gave BCCI the authority to select officials, players and umpires to participate in various international events (Refer to Chart 1 for BCCI‟s Transformation Story). Chart 1: BCCI‟s Transformation Story Adapted from Venkat Ananth, “India‟sCricket Board, a Law Unto Itself,” MINT, December 2, 2014 N. Srinivasan, faced a number of allegations as the President of BCCI in 2013 (Refer to Chart 2 for allegations against N Srinivasan). Chart 2: Allegations Against Srinivasan Allegations Actions Taken Srinivasan became the owner of the Case on the grounds of conflict of interest was pending IPL team, Chennai Super Kings (CSK) against him in the Supreme Court of India in 2014. through his company India Cements  K. Srikkanth was appointed as CSK‟s brand ambassador when he was still the Chairman of the  National Selectors‟ Committee The Indian Cricket Captain and captain of CSK, M.S. Dhoni, had been appointed as a vice-president in India Cements Was accused in spot fixing and betting His son-in-law was accused of passing confidential scams in the IPL matches information to bookies and was jailed. Continued to serve as the Chairman of In March 2014, the Supreme Court of India urged BCCI despite numerous allegations Srinivasan to step down from the Chairman‟s position. and investigations against him In December 2014, Supreme Court questioned the rationale behind Srinivasan‟s presence in the BCCI‟s meetings despite stepping down from the Chairman‟s position. Adapted from Shankar Raghuraman, “BCCI Politics Similar to National Politics,” January 3, 2013 and recent newspaper articles 33
  • 38. ‘Power’ referred to the ability of an individual, group, etc. to influence and control anything that was of significance to others. The scams at BCCI had cast an impression of power misuse in order to influence important decisions like elections and selecting members for international matches. Discussion Questions 1. What role could power play in influencing important decisions in organizations? (Hints: influence recruitment decision-influence selection decision-create a culture of bias) 2. Discuss the incidents that created an impression of power misuse at BCCI. (Hints: allegations of funds misappropriation at HCA- accusations on grounds of bias in match allocations) Course Reference: Concept-Power/Unit 19-Power and Politics/ Subject-Organizational Behavior Sources: i. Krishnadas Rajagopal, “Supreme Court Tells Srinivasan to Keep Away from BCCI Working Committee,” The Hindu, December 10, 2014. ii. Shankar Raghuraman, “BCCI Politics Similarto National Politics,” The Economic Times, January 3, 2013. iii. Venkat Ananth, “India‟sCricket Board, a Law Unto Itself,” MINT, December 2, 2014. OtherKeywords: Global HRM 34
  • 39. 20 General Motors: Inculcating a New Organizational Culture General Motors an American multinational automobile manufacturer headquartered in Detroit was set-up on September 16, 1908 by William Billy Durant. In 2014, GM operated in more than 120 nations worldwide with over 2, 00,000 employees. In the 1980s and 1990s, GM focused on global expansion. By 2000, GM had established its pres ence in emerging economies like Brazil and China. During the global recession and credit crisis in 2008, car sales plummeted. GM suffered significant losses and faced severe cash shortage. The company filed for bankruptcy in 2009 and was bailed out by the US government. The US government invested nearly $50 billion to bail out GM. According to experts, GM‟s cost structure and its culture were regarded as the major reasons behind the auto giant‟s plight. GM‟s culture had been bureaucratic. Edward Whitacre, GM‟s newly appointed CEO in December 2009, made efforts to revamp this hierarchical set-up at GM by personally interacting with employees. In September 2010, Whitacre passed on the CEO baton to Dan Akerson. To break the silo culture at GM, Akerson reorganized the office space allocated to him. Instead of 3 large offices of about 13,000 square feet, many smaller offices were created in order to accommodate the complete executive operations committee. Luxuries like private bathrooms and daily food cart were done away with. Instead, cold cuts were made available for lunch to all employees in the boardroom. Communication was central to Akerson‟s approach of cultural transformation. He conducted frequent video meetings to connect with GM‟s 1,500 senior managers. Akerson focusedon fostering a culture of accountability, which was an aspect that had been overlooked in the past. Employees, at all levels, were expected to focus on performance and results as they would be answerable for their actions and inactions. In 2013, the company‟s revenue reached 155 billion as compared to 105 billion in 2009. His efforts were being taken forward by Mary Barra who stepped in as GM‟s CEO in January 2014. Like Akerson, Barra was also working towards building a culture of responsibility at GM. For instance, she appointed Jeff Boyer as the Global Safety Chief to cope with the ignition switch recalls at GM. This would help the company stay focused on critical customer safety aspects and also instill a sense of accountability. Organizations must strive towards creating a culture that encouraged collaboration and communication. The case of General Motors illustrated ‘organizational culture and types of culture’. Companies with a top-down management approach and water-tight departments might not be able to sustain in the long-run. DiscussionQuestions 1. How did the organizational culture at GM evolve under the leadership of different CEOs? (Hints: initially bureaucratic-attempts at personal interaction with employees-organizational re- structuring) 2. What measures could be taken to break the hierarchical organizational culture in an organization? (Hints: break silo culture- increase employee interaction-reduce structural and hierarchical barriers) Course Reference: Concept-OrganizationalCulture/Unit 20-Organizational Culture/ Subject-Organizational Behavior Sources: i. Amy C. Edmondson, “Fixing a Weak Safety Culture at General Motors,” Harvard Business Review Blog, March 20, 2014. ii. Bill Vlasic and Nick Bunkley, “Obama is Upbeat for G.M.‟s Future,” The New York Times, January 1, 2009. iii. David Welch, “GM Files for Bankruptcy,” Bloomberg Businessweek, June 1, 2009. iv. “General Motors Co.,”www.marketwatch.com. v. Eric Beech, “U.S. Government Says it Lost $11.2 billion on GM Bailout,”www.reuters.com, April 30, 2014. OtherKeywords: Leadership and Change 35
  • 40. 21 The Ignition Switch Recall Crisis: Lessons for General Motors General Motors, popularly known as GM, a US multinational company, was established in 1908 by William Billy Durant. The company was involved in the designing, manufacturing, marketing and distribution of automobiles and automobile parts. GM had operations across 120 countries globally and has a worldwide workforce of more than 2, 00,000 employees as of 2014. GM had been embroiled in an ignition switch catastrophe since January 2014. It was blamed for 13 deaths and 31 crashes across the US. The faulty ignition switches stalledthe car‟s engine, knockedout the brakes and power steering and deactivated the air bags if the car crashed. GM admitted to being aware of the defect about a decade ago. The decision to recall these faulty cars came only in February 2014. The National Highway Safety Traffic Administration issued a fine of $35 million to GM for its delay in recalling the 2.6 million faulty vehicles. The company was also accused of not informing its customers about the ignition switch issue despite being aware of the problemfor 11 years. In the past, GM did not welcome negative product feedback from its employees. For instance, Bill McAleer, GM‟s former manager, had discovered and reported quality issues like gasoline leakage and steering linkage problems during a routine obstacle drive. GM ignored these warnings. Instead, McAleer was laid off in 2004. In March 2014, GM appointedAntonValukas,who investigatedthe Lehman Brothers collapse, to head their internal probe. In the same month, Mary Barra, GM‟s new CEO, appointed Jeff Boyer as VP for global vehicle safety.This was a new designation created to tackle safety and quality issues at GM. In April 2014,the company‟s dealers commenced the repairs on the recalledcars.Customers were not charged for these repairs. In the same month, the company appointed Ken Feinberg, a lawyer specializing in corporate payouts, to handle compensation claims. A „Speak up for Safety Campaign‟2 was also initiated in April 2014. This campaign encouraged employees to bring out any potential safety issue. Later in the month, the company restructured its quality and engineering teams in its bid to focus on customer safety. GM changed its approach towards building a safety culture post the ignition switch crisis. The company agreed to pay the $35 million fine in May 2014. In June 2014, 15 employees were dismissed and 5 others disciplined for their negligence andincompetence basedon the internal review‟s findings. In the same month, GM offered at least $1million to the families of the deceased. To reiterate the company‟s focus on customer safety, GM added a link, „ignition recall‟, on its website. This provided detailed information regarding the safety hazards associated with its various cars. Organizations should be willing to modify their strategies and style of management to meet the changing demands of business. The case of General Motors illustrated „managing planned change’. It was essentialfor companies to be flexible and open to change in order to sustain in the long-run. Discussion Questions 1. What were the consequences of GM‟s reluctance to accept employee feedback in the ignition switch catastrophe? (Hints: blamed for 13 deaths and 31 crashes across US- fined $35 million by the NHSTA) 2. Discuss how planned change could benefit an organization. (Hints: improve product development process-encourage timely correction in products) Course Reference: Concept-Managing Planned Change / Unit 21-Organizational Change / Subject-Organizational Behavior Sources: i. Amy C. Edmondson, “Mary Barra Brings Teaming to General Motors,” Harvard Business Review, January 14, 2014. ii. Tim Higgins and Nick Summers, “GM Recalls: How General Motors Silenced a Whistle-Blower,” Bloomberg Businessweek, January 18, 2014. iii. “GM Didn‟t Warn Customers About Ignition Switch Problems for 11 Years,” The Huffington Post, July 19, 2014. OtherKeywords: Organization Development 2 General Motor‟s „Speak Up for Safety Campaign‟ was a program introduced for recognizing employees who came up with ideas to increase vehicle safety. It was also aimed at lauding employees whenever they voiced an aspect that could hamper customer‟s safety. 36
  • 41. 22 Reviewing Consultants through Survey Feedback MQ Telecommunications (MQTC) Pvt. Ltd., a Singapore based company was incorporated in 2000. It offered technology and telecommunication solutions for commercial offices, dealing rooms and data centers. Its client list included government sectors, educational organizations, manufacturing, financial sector and technologies companies. Client-consultant relationship was evident from the ancient religious texts where kings used to take advice from the wise men, sages, and saints because of their vast experience and wisdom gained from travelling across kingdoms. This trend continued even in the modern world in different fashions. MQTC appointed external management consultants several times to formulate key business decisions. Each consultant assignment produced different levels of success. In 2012, a study was conducted by Steven H. Applebaum to find which factors were relevant for effective client-consultant relationship. Nine pre- determined factors in client-consultant relationship were considered for the study (Refer to Chart 1 for the success factors): Chart 1: Nine Pre-determined Success Factors Nine Pre-determined Success Factors  Consultant professionalism   Matching client expectations with project deliverables   Clear and well communicated expectations and outcomes   Visible executive support   Consultant adaptation to client readiness   Consultant investing time in learning the clients environment   Defining the outcomes in terms of incremental successes   Real partnership between client and consultant   Consultant participation in implementation phase Adapted from Steven H. Appelbaum, The Client-Consulting Relationship: A Case Study of Critical Success Factors At MQ Telecommuniques, Journal of Business & Economics Research, Volume 2, Number 2, 2012 Data was collected from 102 employees of MQTC. Managers from middle and lower level were selected from human resources, enterprise services, corporate communications, marketing research and marketing departments for the study. The results from the survey and the guidelines prepared for future consulting projects based on the findings were as follows (Refer to Chart 2 for guidelines developed for client- consultant relationship): Chart 2: Results of Last Client-Consultant Relationship and Guidelines Developed for Future Client- Consultant Relationship Independent variables that emerged as MQTC‟s guidelines for consulting assignmentssignificant for client-consultant relationship  Adaptation to client readiness  Need for clarity, internal communication and  Clarity of objective, deliverables and  buy-in  outcomes Spending more time on learning MQTC‟s Prototyping and emphasis on incremental  environment  success Leveraging in-house knowledge and expertise Continuously partnering with the project  Implementation planning and execution to be  team  consultant mandate Consultants professionalism Developing more clear governance  Understanding the sense ofurgency procedures. Adapted from Steven H. Appelbaum, The Client-Consulting Relationship: A Case Study of Critical Success Factors At MQ Telecommuniques, Journal of Business & Economics Research, Volume 2, Number 2, 2012 37
  • 42. The survey feedback of MQTC employees were tested against the pre-determined factors, where in some independent variables emerged as significant and aided in setting guidelines for future consulting projects at MQTC. In organizational development, ‘survey feedback’ was conducted among the work groups or departments to understand the perceptions of employees about changes in the organization and to help in the development of a motivational climate in the organization. MQTS survey results suggested some improvements and evolved some guidelines for efficient client-consultant relationship for improved project outcomes. Discussion Questions: 1. What is survey feedback in this context? (Hints: data collection- diverse audience for survey-analysis-feedback) 2. What benefits does survey feedback offer to organizations? (Hints: understand employee perceptions-help develop a motivational work environment) Course Reference: Concept- Survey Feedback /Unit 22 – Fundamentals of Organizational Development/ Subject – Organizational Behavior Sources: i. Pattanaik Devdutt, “The Rishi-Raja Connect Reveals Advisory Lessons for today‟s CEOs,” Economic Times, November 14, 2014. ii. Steven H. Appelbaum, The Client-Consulting Relationship: A Case Study of Critical Success Factors At MQ Telecommuniques, Journal of Business & Economics Research, Volume 2, Number 2, 2012. iii. http://www.mqcoms.com/index.html#client. OtherKeywords: Organization Development 38
  • 43. 23 Swachh Bharat Abhiyan: A Case of Sensitivity Training The Swachh Bharat Abhiyan (SBA) was launched by Mr. Narendra Modi, India‟s 15th Prime Minister to transform India‟s image from a filthy nation to a clean and hygienic country. This 5 year drive was initiated on October 2nd 2014, the birth anniversary of Mahatma Gandhi, to fulfill his vision of „Clean India‟. SBA encouraged India‟s 125 crore people to pledge devoting 100 hours every year, approximately 2 hours/week, to clean their surroundings. SBA aimed at sensitizing people towards the adverse effects of open defecation. Making this programtranscend beyond a photo-op, pledging campaign would not be an easy feat (Refer to Chart 1for Challenges faced by SBA). Chart 1: Challenges of SBA The “wa hhta Pledge was a general, broad-  It did not mention the need to use toilets.  A lea li ess appeal did not necessarily result in people using toilets. brushedmessage. “Open DEFECATION FREE INDIA by 2019” Open defecation is notconsidered unhealthy. About 51% of the people who defecated in the open, regarded it as being goodfor hildre s health. The rate of decline in open defecationmust be  About 110 million toilets were needed to be built over the next 5 years.trebled.  Reluctanceto usetoilets ledto thefailureoftheprevious PeopleinIndiahadapoorcompliancebehavior.  initiatives – Total “a itatio Ca paig a d Nir al  Bharat A hi a . People who defecated in the open perceived latri e to e a ea s of lu ur . Adapted from Nidhi Khurana, “Beyond Brooms and Toilets,” Livemint, November 6, 2014  Programs for sensitizing communities towards the benefits of using toilets for their health were to be designed. The Ministry of Drinking Water and Sanitation decided to design campaigns to sensitize school students towards the importance of using toilets. As a part of this campaign, teachers and students were to be encouraged to spread the sanitation message, especially across their families.   Sensitivity training programs were to be designed by using the successful „community-led‟ and „demand-driven‟ approaches usedin Nepal and Bangladesh. In 1990, the „Social Mobilisation‟ (SOCMOB) campaign which started in Bangladesh,increasedthe demandfortoilets.It also created a lucrative market for the private toilet producers.In 2012, the rate ofopen defecation in Bangladesh dropped to 3% from 34% in 1990.ExpertssuggestedthatfortheSBAtobe successfulas a campaign: ‘Sensitivity Training’ was essential to make people receptive towards the importance of creating a Swachh Bharat. Attempts made in the past failed to meet the desired outcome due to the unwillingness of people to use toilets. Organizations could use sensitivity training to modify employee behavior by understanding and changing their attitudes towards policy, practice, etc. Discussion Questions 1. Explain how Sensitivity Training would help cultivate a cleanliness culture among Indians? (Hints: create awareness towards the importance of using toilets- teachers and children to spread the sanitation message) 2. Discuss the challenges that may impede the success ofthe Swachh Bharat Abhiyan. (Hints: it was a general message-did not mention the need to use toilets-reluctance to use toilets) Course Reference: Concept-Sensitivity Training/ Unit 23-Organizational Development Interventions/ Subject- Organizational Behavior Sources: i. Debjani Arora, “Swachh Bharat Abhiyan:India‟s Sanitation Needs More Focus,” The Health Site, October 12, 2014. ii. Nidhi Khurana, “Beyond Brooms and Toilets,” Livemint, November 6, 2014. iii. “Swachh Bharat Abhiyan Kicks Off: 10 Key Facts,” The Financial Express, December 17, 2014. OtherKeywords: HRM 39
  • 44. 24 Roca Inc.: The Story of „People-Oriented‟ Approach to Organizational Development Roca Inc., well known as Roca, was an outcomes-driven youth development organization. It was dedicated towardstransforming the lives of young gangsters in the ages 17-24. The company was set-up in 1988 andwas headquartered at Boston. Many of Roca‟s employees were former gang members. In 2014, Roca served 494 high -risk youngsters. Of these, 92% had no fresh arrests and 98% had no technical infringements. Roca was driven by a „people-oriented‟ approach in turning around the lives of young women and men (Refer to Chart 1 for Roca‟s approach). Chart 1: Roca‟s People-Oriented Approach High-Risk Young Involved in Criminal Activities like selling drugs and People street fights GET TER M IN JAIL No Financial No Jobs Limited Educational Independence Exposure Roca’s Outreach and Data-Driven Evaluation + Transformational Relationships Approach Showed-u p for these Processes like Peace- Youngsters Keeping Circles Helped Transform into Respon sible Adults High-Risk Young + Created a Better Future People Re-engage in Society Educational Gains like life-skills and case management programs Renounce Criminal Activities Stay out of Jail Get Good Jobs Economic Independence Consistent, Positive Outcomes Adapted from Peter Senge, Hal Hamilton and John Kania, “The Dawn of System Leadership,” Stanford Social Innovation Review, Winter 2015 Roca used processes like „Peace Keeping Circles‟ to transform youngsters (Refer to Chart 2 for process used at Roca). Chart 2: Process Used @ Roca Youngsters, Police, Probation Officers etc. 1st Step: All Critical Players get Together in a Circle 2nd Step: Each person voiced his/her deepest intentions in a few words CORE IDEA “What affects the Individual Affects the Community” 3rd Step: Players patiently listen to each others’ problems 4th Step: PKCs make its participants realize that a problem affects all members of a community and not just an individual. Adapted from Peter Senge, Hal Hamilton and John Kania, “The Dawn of System Leadership,” Stanford Social Innovation Review, Winter 2015 raised certain apprehensions about Roca‟s „people oriented‟ approach:  Making the company and the leader acknowledge his/herown shortcomings and biases was not an easy feat.   Getting employees from different organizational levels to patiently resolve a problem called for a well thought execution strategy and strong leadership Expertshad- „People-Oriented’ Approach referred to the supportive attitude of an organization‟s top-level management insuccessfullyimplementingthe OD process. Roca and its management used a „people- centric‟ technique to bring about transformation among troubled youngsters. A similar approach could be used by companies to alter employee attitudes, improve inter -personal relations and to bring about organizational changes. 40
  • 45. Discussion Questions 1. Discuss the „people-oriented‟ approach at Roca Inc. (Hints: re-engage high-risk youth in society-help in getting good jobs-offer educational gains like life-skills) 2. What drawbacks could a people-oriented technique suffer from? (Hints: not an easy feat to attain- called for strong leadership and a well thought execution strategy) Course Reference: Concept-People-oriented Approach/Unit 24-Futureof Organizational Development/ Subject- Organizational Behavior Sources: i. Crystal Garland, “Mentoring Gang-Involved Youth: How Roca, Inc. Combines Mentoring and Services in a High-Risk Intervention Model,” Justice Center, January 31, 2012. ii. Peter Senge, Hal Hamilton and John Kania, “The Dawn of System Leadership,” Stanford Social Innovation Review, Winter 2015. iii. “Roca‟s Mission is to Disrupt the Cycle of Incarceration and Poverty by Helping Young People Transform Their Lives,” www.rocainc.org. OtherKeywords: HRM 41
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