topic – for Martin writer

the deadline for tomorrow at 10:00 am

MGT 317

Professor Laura Fizek

Final Exam

May 2, 2013


Please respond to the following questions in essay format

1. A manufacturing company making small doll parts for a toy manufacturer is having difficulty getting their parts completed on time and the toy manufacturer is threatening to take their business to a competitor. The small parts company has had turnover lately and has needed to train new employees; this has been due to a freeze on wages as the manufacturing costs have increased. The wage freeze has caused longer term, well trained employees to leave the company in pursuit of companies hiring with higher wages. The company has old and outdated equipment and it is questionable whether the equipment is always safe to operate. The company has always manufactured very good parts, but lately has had some minor recalls due to some manufacturing mess ups.

You are one of a team of executive decision-makers trying to keep the business going and keep your customers satisfied. Using the above case scenario, please describe your approach to solving this situation using decision-making theory, motivational theory, goal setting theory, negotiating theory, and leadership theory.

2. You are working in a small accounting firm and have been there for 5 years. Two years ago, the firm hired a young man who had interned there as a student and it seemed, at the time, that he was a motivated, collaborative type of guy. Lately, though you have noticed that he is often sending emails to the managers about the work he is doing individually and not sharing all the work that the team as a whole has contributed that actually makes his individual work possible. Recently, you both were working with the same client as a team regarding some accounting issue that needed to be solved. You collaboratively came up with a solution and he emailed the client the solution. The client was thrilled and emailed your boss sharing how great the firm is and specifically mentioning this particular employee and not mentioning you or your contribution to this solution. You decide to talk to your colleague.

Describe the Social Information Processing Model and apply it to the above case as if you were EACH of the two people involved in the situation (what is each person’s perspective?):

· What is each person’s initial response based on the model?

· What will your action be and what principles of the model are you using?

3. You have been asked to work on a project with a team that is a cross-functional and cross-divisional team from the company, meaning that there are all levels being represented, high level managers to front line staff. You have been asked to facilitate the meetings and make sure that all opinions are being considered when the team finally makes its recommendations to the CEO. The following is a typical sample of the meeting that you just attended:

Tom: “I think we should survey the rest of the company on this issue and give everyone who responds to the survey a coupon for a free coffee and muffin at the cafeteria”

Susan: “That’s one idea and I’m sure folks would like the coffee and muffin. I think we should talk about the necessity for folks to share their ideas so their voices are heard”.

David: “I’m thinking that if we ask supervisors and managers to require folks to contribute their ideas – that’s going to get more people to fill out the survey and respond. Supervisors and managers have a lot of leverage here due to their authority.”

Felicia: “Why can’t we find some external thinkers on this subject to add their ideas? People listen to what has been done successfully in other similar situations.”

Raj: “It seems reasonable to want to solicit feedback and the way we do that will determine the type of feedback we receive. We should consider the way in which we are requesting the feedback and what methods we are using. We should consider the culture of our organization in doing this.”

Antonio: “Being the senior person at the table, if I write the introduction to the survey and let people know that I will have information on who responds and contributes and who doesn’t. That, alone, will get people to answer the survey.”

Please describe the team from Tuckman’s model –what stage do you think they are in and why, the 5 bases of power and, consider intrinsic and extrinsic motivation in the above case, please highlight the bases and the type of motivation that members are using and defend your response with details from the above case scenario.

4. Background

Illy Cafe is one of the ten best companies in the coffee industry in Europe. It was founded in 1933 by Francesco Illy, and in 1994 was given over to Andrea Illy. Since its formation, Illy Cafe’s main goal was to deliver the best quality coffee to its customers. The company was careful when choosing its suppliers and always made sure it receives the best quality coffee beans. However, after the last CEO had joined the company in 1994, Illy Cafe decided to change its strategy and become more responsible in the area of its business, rather than focus solely on its coffee product. The CEo wanted to continue to purchase high quality products, and wanted to ensure the best price so that the business would continue to grow and be cutting edge in the industry. The circumstances, which the coffee industry appeared to be under in 1989, was the first step toward the strategic changes made in some companies, like Illy Café. Now, Illy Café buys highest-quality Arabica beans directly from Brazil, Central America, India, and Africa.

Illy Café supply chain

In 1989, Illy Café’s management argued about its supply chain. Several senior managers wanted to continue to purchase coffee from the suppliers upon whom they had always relied and who offered a fair price – no worries about quality with these suppliers. Others on the senior management team thought they, as a company, would have greater control over their pricing and products if they reduced the ‘middle man’, the supplier, and went directly to the farmers to purchase their coffee. The quality of the coffee played a significant role in Illy Café’s business. Some senior managers believed that coffee loses its quality after going through different stages in the supply process. They believed that the more intermediaries they would have, the worse the quality of their coffee would be. Therefore, changing this situation through refusing to have a single intermediary appeared to be the most appropriate thing to do.

Other senior managers were convinced that the farmers, not connected to the suppliers, would not produce the quality or quantity required. Usually, the supply chain goes from farmer to consumer through intermediaries, producers, distributers, and hotels and restaurants. This is a carefully thought through system, which was designed for the convenience and cost reduction of those who are in it. The reason why large and experienced companies, who deal with the coffee, are not willing to change the supply chain is because they realize how difficult and risky direct purchasing might be. There is no one farmer, who produces the entire amount of coffee beans required by the company, especially if it operates worldwide. This means that in order to practice direct purchasing, the company has to enter a partnership with dozens of growers. Building a strong and long lasting

relationship can be tough even with one partner. Consequently, doing so with ten partners is considered to be nearly impossible. Brazil, who was a chief coffee producer also had the reputation of having poor quality coffee. Suppliers were very choosey about which farmers they would represent.

The management team was divided on this issue and each seemed to take on the characteristics of the five conflict handling styles. You are observing this team discuss this issue of changing the supply chain model. In your observations, please site the five conflict handling styles and describe how each style would handle this situation (what the person who is demonstrating this style would say, how would they present his/her point of view, etc.). This case refers to leadership of the CEO. Assuming that the CEO is in favor of directly purchasing coffee from the farmers, please describe what leadership style(s) would be the best to apply in this case and what would it look like for a leader to use those styles – how would a leader lead this team?

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