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Discuss what are considered to be good characteristics of a performance appraisal system and then discuss how these better systems might be paired up with compensation and benefit packages that really motivate employees. Hint: you may want to look at programs such as gainsharing plans, etc. Is there any evidence that they work and that they are fair and create a sense of Respect, Personal Development, Responsible Stewardship, and Integrity in organizations?. Be sure to cite appropriately (APA). The paper should be 4 pages long.
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Performance Appraisal

Below I am supplying the research outline to be used for the reserach paper. Please note that in #4 (Methodology/Procedures) instead of actually performing the research I am to use sources/research that already exists. Also, at the end there are comments/directions given by the professor.

Research Outline:
1. Problem: Many managers view the task of conducting a performance appraisal as time consuming and burdensome. These views can be attributed to the sometimes-confrontational aspects that are associated with the administration of performance appraisals. Burdensome as it may be performance appraisals and performance appraisal systems that are properly designed and implemented are a reflection of the achievement of an organization?s goals and objectives. The failure to implement an effective performance appraisal system often leads to no relationship existing between the performance appraisal and the achievement of organizational goals and objectives.

2. Evaluation of Literature: Books, journals and periodicals related to performance appraisals and how they affect organizational goals and objectives and employee performance will be reviewed and evaluated to determine the validity of the hypothesis being tested. The Internet will be an active source for much of this information as well.

3. Hypothesis: The achievement of organizational goals and objectives can be measured in part by effective performance appraisals.

A. Research Questions: Research Questions
1. Do performance appraisals encourage employees to have an increased work ethic that will ultimately affect organizational goals and objectives?
2. Do employee performance appraisals increase/decrease job performance?
3. Do valid performance appraisal instruments effectively measure or rate employee performance?

B. Assumptions
1. Performance appraisals will suggest that employees tend to work harder when being evaluated.
2. Effective performance appraisals increase job performance.
3. Employees want performance appraisals conducted.

C. Variables
1. Dependent: Employee performance appraisals
2. Independent: Achievement of Organizational goals and objectives
3. Intervening: Increased employee anxiety

4. Methodology/ Procedures
A. Review: A thorough review of literature will be conducted to assemble existing findings regarding how the performance appraisal reflects the achievement of organizational goals and objectives.

5. Data Analysis and Interpretation:
A. Using the data collected from the surveys, the results will be coded using an available statistical software program to determine whether the hypothesis was accepted or rejected. Results will indicate that employee performance evaluations are often an effective measuring device used to determine whether organizational goals and objectives are being met.

6. Conclusions/Recommendations: It is important for organizations to inspect what they expect. Performance Appraisals are excellent tools to ensure that the goals and objectives of an organization are aligned with the human capital. When these goals and objectives are aligned and measure by an effectively designed and administered performance appraisal tool, desired results are easier to attain. An effective performance appraisal tool is an excellent tool for an organization to engage its human capital. The lack of an effective performance appraisal system present the following negative ramification on an organizations: compensation, integrity of promotion process, trust and moral, employee relations index (ERI), customer service index (CSI), organizational goals, organizational culture, organizational values and organizational litigation.

Comments from the professor:
A. Your conclusion should be based on cited evidence. All papers must be anchored in the scholarly professional literature or currently evolving professional or research activities. Research may be through libraries (professional books and journal articles), the Internet, computer databases.
B. Graphs will be used to illustrate the results of the survey.

A research paper:

1. Addresses some problem or concern;
2. Uses research methodology;
3. Cites current professional references (as well as "classics");
4. Is suitable for publication (and conforms to a style guide);
5. Is NOT:
a. A string of quotes taken from various sources, even if organized and sequenced in some logical manner. (While supporting professional citations are encouraged, the preponderance of the paper should be your own thinking and work.)
b. An "editorial dump" of your personal views unsupported by citations from the professional literature.

2All organizations utilize some sort of system that periodically reviews the performance of every staff member. As the director of human resources, you are responsible for developing such a system.

Determine the elements that should be present in an appraisal system using a discussion thread in the Main forum.

Write a 750- to 1,050-word paper in APA format that details an original performance appraisal system for a human service organization. Address the following:

? What is the purpose of a performance appraisal system and how does it benefit the organization?

? Outline the elements of good appraisal systems.

? Determine the criteria for each element that should be present in an appraisal system.

Cite at least two sources.

Post your paper as a Microsoft? Word attachment in the Assignments section of eCampus.

The essay should be in the format of a discussion paper on Performance Management Systems, and specifically:

"Will the use of a Performance Management System Within Sun Microsystems Limited Ensure High Organisational Performance?"

Some focus areas should be:
- Identfy and explain difference between a Performance management system and a Performance appraisal system.
- Look at research on links between the use of PMS and organisational performance.
- Should discuss and analyse the pros and cons for the development of a performance management system.
- Should identify practices that achieve better employee relations, employee retention, higher productivity, greater customer satisfaction, increased market share and improved profitability

Should include a Conclusion statement.

Full citations and references since year 2000 in Harvard format.

Script should be biased towards UK.

The paper needs to be MLA format and have at least 8 sources. I;m writing a paper on the performance appraisal systems in casino such as the Table Games deaprtment which I oversee. The name of the Casino is Chukchansi Gold Resort and Casino and should be referenced in the paper as such. We do a measured evaluation system where a supervisor appraises a subordinate and then it's processed through channels such as the director, HR and then payroll.

I am completing a research proposal to build a case for the introduction of a performance appraisal system into an Irish Dpt Store, the system will be for sales staff and supervisors. The company has statistical data which show that they need to improve customer care, improve staff satisfaction and motivation and highlight any training needs.

Therefore in the literature review I need to build a case as to why performance appraisals do work but I also need to critically analyse their flaws.

It needs to encompass a brief history of performance appraisal from the oldest to the main current theorists.

To identify good practice for an effective performance appraisal systems in todays workplace, if possible what would work best in retail.

How they should be structured- managers buy-in, 360 degree feedback.

In particular, if there have been an studies or arguments as to what type of performance appraisal would work well in a retail environment.

Please reference from some of the following and if possible articles from Harvard Business Review. All idea thoughts which are obtain from articles/book must be referenced to avoid plagarism.

"Understanding Performance appraisal by kevin Murphy & Jeanette Cleveland (1995)
"Personnel Management:a comprehensive guide to theory and practice in Britain" writen by Gerry Randell (1994) edited by Keith Sisson.
Book of short articles on the subject published by the Harvard Business Review in 1990 under the title Manage People,not personnel.
Appraisal and Feedback:Making Performance review work by Clive Fletcher (2004)
Performance Management: Key Strategies and Practical Guidelines; Kogan Page Limited, London
Armstrong,M & Baron, A. (2006) Managing Performance: Performance management in action, Chartered Institute of Professional Development, London

I will send you more supplymentary information later.

Here is the topic and describtion

This assessment item relates to the course learning outcomes numbers 1 to 5 as stated on page 1.

Which are:
1. situate strategy and human resource management within a contemporary organisational framework
2. develop insights into implementation strategies and understand the importance of those insights for the human resource management professional
3. incorporate appropriate individual and organisational human resource management strategies within an organisational context by way of analytical essays and reports
4. critically and analytically evaluate the relevance of new theories, design methods and concepts within human resource management
5. communicate your knowledge and analysis skills, in counter argument.

Read the following case study, The IT firm and the performance appraisal system (Boxall and Purcell 2008) which has been given for your class discussion on week 8 on your moodle website of this course as background for your report.
Case study
The company is an innovative IT service business, providing consulting and software applications to insurance companies. It has 700 employees, all of whom are employed on individual employment contracts. If its historical rate of growth continues, it expects to have 1000 staff fairly shortly. The firm has expanded very quickly in its specialist segment of the industry and senior management realises its HR policies have not kept pace. Given the companys desire to professionalise all parts of the business, two years ago, Angus, the CEO, appointed an HR Director, Glenys. Since then, she has built a small HR department of 3 staff.
Glenys is a member of the senior management team, which also includes Angus and five other senior managers: three in charge of service divisions, one in charge of the companys own information systems and one the financial controller. All have lower level managers reporting to them, with the greatest number of middle managers and team leaders (first-line managers) in the operating divisions.
With Anguss full support, one of Glenyss first acts, 21 months ago, was to hire a firm of HR consultants to help the company develop a good performance appraisal (PA) system, one which would help managers to set performance objectives, formalise the process for making merit-based pay recommendations, and foster employee development. Senior management, led by Glenys, worked with
the consultants on the design of the system. Angus felt he could leave it to the members of his senior management team to speak up if they thought anything was unwise in the design and, besides, he thought, Ive now got a highly paid HR Director and an HR department and theyre the experts on this stuff. The new PA system is based on setting individual performance objectives on an annual basis (a
management-by-objectives (MBO) system). It involves staff participation in setting these goals and requires managers to keep an eye on how goals are going every three months in case some goals need to change or employees need coaching. At the end of the financial year, the system requires managers to meet with each of their team members to discuss achievement against planned goals. It uses a five-point rating scale to assess overall achievement against these objectives, anchored as follows:

1 2 3 4 5
Unacceptable Marginal Competent Commendable Outstanding

The performance appraisal system is not simply about performance issues, however. Once the performance rating has been discussed, it then moves into a section on employee development in which the manager is supposed to discuss employee knowledge and skills and agree a development plan, which may include training recommendations

All the companys managers were put through 2 days of appraiser training. This was designed to help them deal with such issues as rater bias and how to handle difficult appraisal interviews. After the training was complete, the consultants declared the system installed and departed. The CEO, Angus, then told managers to go ahead and set objectives with each team member. This was done, not without
some difficulty, but it happened. Then, after 12 months, appraisal interviews were carried out, with Glenys and a member of her staff helping to ensure this happened. Managers found the systems requirements somewhat laborious but at least the forms were on-line and the recommendations on pay and training could be sent directly to the companys HR department that way. Some four months ago,
Glenys informed Angus that all the recommendations had arrived.
Unfortunately, no merit pay increases have emerged yet and disquiet is bubbling up among the staff. A round of post-installation focus groups, comprised of randomly selected team leaders and staff members, has just been conducted by the HR consultants who installed the system. They show that employees are losing confidence that anything positive will come out of the new PA system. The sort of comments people have been making include the following:
The idea of rewarding our stars is good but HR makes it all too complicated!
Look, Im prepared to give them the benefit of the doubt but the whole thing has taken too long. Why are they not making any decisions?
Well, in my view, things were better before there were any high-powered HR procedures in the company. My manager had more pull then and could get his boss to act quickly on a pay increase. There was no form filling and people were gung-ho and pretty loyal for this industry.

Several of the best performing staff have resigned in the last month, moving for better pay and conditions elsewhere. There is currently a very healthy labour market for talented programmers.
Part of the delay relates to a problem with the pattern of appraisal ratings across departments. Managers in Division X, the largest service department (where problematic employee turnover is occurring), have rated 60% of their staff as outstanding (five on the scale) while most other managers in the company have
given an average rating of (close to) 4 with around 20% in the outstanding category. Glenys is not at all happy with Division X. Along with the pay recommendations, she has reviewed the training recommendations from Division X: these actually suggest that a lot of fairly expensive training and development activity is needed for most staff there. This is hardly consistent with the view that 60% of the staff are at level 5 in terms of job performance. What are Division Xs managers up to?

Just to make matters worse, the business environment in the insurance industry has deteriorated dramatically in the last 3 months (due to a string of adverse weather events) and this is expected to make insurance companies less likely to commission new software projects. There is now a board-driven directive to review costs in all departments. Angus, who has enjoyed running a high-growth company, now finds himself in the position of having to manage a different context altogether. He has to ask Glenys to meet with him and the rest of the senior management team to review all recommendations for salary increases. Despite lower level managers having told staff that their performance is commendable or outstanding (and, in Division X, that 60% are outstanding), he makes it clear to her that any pay increases will now have to be very carefully handled and will not proceed without his personal approval.

You should write a report
In your report, include discussion and recommendations for linking HR system to organizational performance that will contribute to the future growth and prosperity of the organisation. Critically analyse the case and evaluate the following aspects:

the core issues and HRM concepts directly or indirectly reflected in the case.
the black box problem: links between HRM and performance
the role of culture in Strategic HRM practices and the concept of internal fit, as critical to a high quality performance in HRM
the key HR competencies, practices, policies nd/or determinants for success in addressing the big issues identified in the case.

To demonstrate your research ability and understanding of the topic, your report should include:
Practical examples, with evaluation of the successes and/or failures evident in those examples.
Reference to relevant theories and models.
Synthesis of research from multiple, correctly cited sources (at least ten (10) publications
including two (2) critical research articles). You should follow the Harvard Referencing Guide available at
The assignments in this course will be assessed using criterion-based ssessment as set out in the Assessment Criteria & Standards Matrix provided at the end of this course profile.

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Task 1 (approx 1500 words): You are an external consultant brought in by senior management to review the performance appraisal and wider performance management system at the Colbran Medical Institute. Using the case study information (which will be uploaded), write a report that critically analyses the role of effective performance management in the future success of the Colbran Medical Institute. The paper needs to define performance management and discuss the various components of performance management (e.g. performance appraisal, training and development and renumeration) as they relate to the case study. Also provide a reflection on the particular performance appraisal issues in the case study such as the potential for distortion of appraisals. You need to use theory to explain good practice and relate the issues at the Colbran Medical Institute to the theory. From the analysis, you are to provide a recommendation of a performance appraisal system in task 2.

Task 2 (approx 500 words): Related to the paper, you are required to recommend a performance appraisal system(s) that would suit the Colbran Medical Institute. Explain why you have chosen the particular performance appraisal system(s) for this organisation.

Suggestions for Paper (Task 1):
Need to define performance management and performance appraisal, including the objectives of each. Identify the issues at Colbran Institute in relation to performance management and performance appraisal and then explain and relate to sourced theory. For example explain the performance appraisal system being used (graphic rating scale) and some of the problems or issues with this performance appraisal system. Discuss potential appraisal distortion issues with the performance appraisal scheme itself.
Relate the analysis of Performance appraisal at Colbran to a wider discussion of performance management. What areas should/could be linked to performance appraisal at the Colbran Institute (eg remuneration, learning and development, career planning)?

Suggestions for Paper (Task 2):
Explain what performance appraisal system(s) (e.g. Ranking, BARS, MBO) you are suggesting using sourced theory/research to support your recommendation. You can explain the advantages/disadvantages of the system, how it will fit into the overall performance management scheme and how it will help to facilitate achieving its strategic objectives at Colbran.

Summarise what you have discussed, restate recommendations and indicate how the performance appraisal system(s) and performance management overall will help Colbran to meet its strategic objectives and meet employee needs.

Other Points:
Needs to have at least 3 peer-reviewed journals and 7 other sources with complete in-text referencing throughout
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Scoring System Developed for a

Answer the following essay questions one page each.
1. How is the scoring system developed for a weighted application blank? Provide an example of how this works. (one page)
2. Read the attached downloaded article HRM, and summarize the main points. After you summarize the article, explain what you have learned or what the article means to you. (one page)
3. What is 360-degree feedback? What advantages might it have over more traditional performance appraisal systems that use only downward feedback? What are some of the problems that could occur in using a 360-degree feedback system? (one page)
4. Read the downloaded application case labeled Unit 5 p 1-4 and answer the three discussion questions at the end. (one page)
5. Read the downloaded application case labeled Unit 7 p 1-3 and answer the three discussion questions at the end. (one page)
6. Why is training an important requirement for organizations to undertake? Have you participated in organizational training, and if so, do you feel that is was successful? Why or why not? (one page)
Please use Human Resource Management 11th ed by John M. Ivancevich as one of your sources

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In preparation for the board of directors meeting, the chief executive officer (CEO) has asked you to prepare a strategy for maximizing the use of human resources. The CEO pointed out several issues that should be covered as part of the human resources presentation. First, the CEO is concerned about results from a recent employee survey that indicated many employees did not receive regular performance evaluations. Employees complained about the lack of a regular performance appraisal system. Second, managers pointed out that there was not a process for assessing the work of teams, which are an important part of organizational success. Third, at the last board meeting, the directors asked for a report on how the company might implement succession planning.

Task 3:

A. Explain the benefits of performance appraisal systems within the organization in which you address the following:
1. Present the positive results expected from a well-prepared and well-delivered performance appraisal.
2. Recommend preappraisal activities that will ensure the performance appraisal processes is beneficial to the employee and the company.
3. Illustrate what can go wrong when giving feedback to the employee during the delivery of the performance appraisal.
4. Discuss steps that a manager might take when delivering a performance appraisal to ensure the process provides value to the employee and the company.
5. Recommend postappraisal activities that will ensure the performance appraisal process is beneficial to the employee and the company.
6. Discuss the benefits to the company of working with employees to further their career goals.

B. Discuss the evaluation of teams within an organization in which you address the following:
1. Summarize your research of at least two existing models to assess team performance.

Note: Sources are required to successfully complete part B1. As noted in part F, all sources should be cited in APA format.

Summarize two modules (i.e. examples) of how team performance is measured / assessed:
o Who? Developed this model/ process for evaluating team results? A person? An organization? Other
o What? Does the overall process look like? Lay out the process and describe each step.
o When? Did this process / model get developed? Is it relatively new or has it been around for years?
o Where? Is this model / process used? Industry specific (i.e. health care only)? Military?
o Why? Did you choose this particular model? What factors are beneficial or advantageous in you opinion?
o How? (Exactly & thoroughly) does this model measure team performance? You already summarized the overall process for #2 so hear you focus must be how the model effectively assesses team performance; if there?s a specific tool used, then name it.

2. Justify the ONE model the company should adopt to assess team performance
o Explain thought processes leading to decision
o Reasons this model is preferred over other one
o What benefits can be anticipated from implementation?

3. Illustrate the differences between evaluating team performance and individual performance.

C. Discuss concept of succession planning; areas to address:
o Present broad reasons for engaging in succession planning
o Discuss narrow implications and uses of succession planning
o Present potential succession planning process?How?
? Provide a graphic with source cited
? Explain each step of succession planning process from graphic
D. Present summary of presentation; areas to address:
o Reiterate main points FROM EACH SECTION that you most want reader to remember
o Recommend implementation steps for all main points


Educator Evaluation with Teacher Teams is a Powerful Combination
By Erin Dukeshire
Huff Post Education March 20, 2014

# 2 Evaluation of Team Model #1
Massachusetts Model System for Educator Evaluation
Part I: District-Level Planning and Implementation Guide
January 2012
This document was prepared by the Massachusetts Department of Elementary and Secondary Education
Mitchell D. Chester, Ed.D. Commissioner

#3 Evaluation of Team Model #2
Military Command Team Effectiveness: Model and Instrument for ...
by P Essens - ?2005 - ?Related articles RTO TECHNICAL REPORT. TR-HFM-087. Military Command Team

Effectiveness: Model and Instrument for. Assessment and Improvement.
Military Command Team Effectiveness:
Model and Instrument for
Assessment and Improvement
This Technical Report has been prepared as a result of a project on
?Team Effectiveness? for the RTO Human Factors and
Medicine Panel (HFM-087/RTG-023).
Dr. Peter Essens (Chairman), The Netherlands
Prof. Dr. Ad Vogelaar, The Netherlands
Prof. Dr. Jacques Mylle, Belgium
Ms. Carol Blendell, United Kingdom
Dr. Carol Paris, U.S.A.
Dr. Stanley Halpin, U.S.A.
Dr. Joe Baranski, Canada

Updated PDP

Project: Update your Professional Development Plan

In NU300 you prepared a Professional Development Plan (PDP) (To Writer Uploaded as a resource doc.) It is the purpose of this assignment to evaluate how Leadership and Management in the Changing Healthcare Environment relates to the achievement of your professional goals.

The baccalaureate nurse leader should be proficient in current leadership and management techniques, as well as developing an awareness of his or her strengths and weaknesses as a leader. Managerial tools such as change theory, quality improvement processes, budget analyses, strategic planning and performance appraisal are crucial to the baccalaureate educational experience.

Review your Professional Development Plan, focusing specifically upon the goals as well as your strengths and weaknesses. Reflect on the following course content concepts as they relate to your goals and self evaluation:

? Apply key principles of change theory to a data-driven quality improvement process for patient care delivery

? Analyze the impact of key changes in the U.S. health care system on patient care delivery and the role of the professional nurse

? Explain the potential impact of leadership styles within an organization

? Apply decision-making tools and team processes to organizational problem-solving

? Interpret the key accountabilities of nurse managers in a clinical practice setting

? Analyze the relationship among a health care organizations? mission, vision, and strategic plan

? Interpret the financial impact of management decisions in a health care setting

? Analyze a performance appraisal system used in a clinical setting

Using your former PDP paper updated in your last nursing course (Note to writer uploaded as a resource doc.), add a section at the end titled NU420. Reflect on your strengths, weaknesses and goals related to this course:

? Has it impacted your view of professionalism or impacted your professional activities?

? Does this new knowledge enable you to make progress toward your goals? Why or why not?

? Is it possible that you have had to rethink your goals?

? Comment on any modifications of your PDP as a result of this course.

? Remember to use correct APA

Workings of HR Department How

Discuss in a 15-page paper with properly formatted APA citations and bibliography, how the various parts of the human resource system used in an organization you are familiar with (can be your own or another??"no need to name names, but you should talk about the types of service or products supplied by the organization) align and support each other. These parts should include the:
job design issues
training activities,
recruitment activities,
selection approaches used,
performance appraisal systems,
promotion systems implemented,
pay parts, and the other benefits, and
general supervisory styles and how they tend to support each other.
Be sure to discuss how these parts seem to be impacting employee morale, organizational efficiency and productivity, the work/life balance of the employees and the climate and culture of the organization. In the conclusion section, outline recommendations for the organization, recommendations that might make the parts fit together better, and those that might make employee morale, organizational efficiency and productivity, work/life balance, and the climate and culture of the organization match better.

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Managing People and Groups in

Individual Assignment Guide

Based on the assigned readings and additional scholarly articles, accurately describe and critically analyze the current performance assessment system in an organization with which you are familiar. Identify and evaluate the systems major strengths, limitations, and most important managerial challenges.

Report length: Use the template below. Limit your presentation to no more than 1,200 words.

1. Give a succinct narrative description of organization used for assignment and your relationship thereto.

[Note: You need not give the specific name of the organization if you prefer to keep that confidential but you should give sufficient information so the context can be understood (industry, size, focus, etc.)]

2. Briefly describe the organizations current performance appraisal system, being sure to clarify whether it:

* is formally or informally applied
* is used systematically across levels, functions, and units
* focuses primarily on organizational goals, individual behaviors, or a combination thereof
* recognizes and incorporates performance on teams
* includes 360 feedback

3. Describe the major goals for the organizations performance assessment system.

[Note: These may be both the formally articulated goals and those you believe will be important. Offer a brief explanation of and support for each goal, relying where appropriate on insights gleaned from seminar readings.]

4. Analyze strengths and limitations of the current system.

[Note: Be sure to refer to information gleaned from the work of scholarly experts when undertaking this assessment of the system you are examining. Use Bernardin Figures 7-2, 7-3, and 7-4 to assist in your analysis.]

5. Discuss any legal or ethical concerns associated with the current system.

6. Discuss any possible challenges or implications for a diverse and/or multicultural workforce.

7. Based on your critical review, briefly discuss and defend changes you believe might be made to improve the system. This should include how the system is used, training/preparation, etc.

8. Briefly reflect on lessons you take from your analysis as a current or future leader in this organization or industry. Consider the implications for your need to ensure performance and commitment of all those for whom you will be responsible.

HR Change Management Plan Approach Paper
Using the HR Change Management Plan Overview found on your rEsourceSM course page as a guide, prepare an action plan to include key tasks (what you will do and how you will do it) and due dates. Be sure to include key resources such as people, data, reports, and articles, among others to be used.
The key word is Approach. The assignment is asking you to identify how you will approach doing the assignment. The term action plan means what steps you will take to complete the assignment.
When preparing the assignment, for each part of the HR Change Management Plan you will need to discuss the following:
a. Types of information and data you plan to review
b. Types of analysis you might perform on the data that you collect
c. Deadline dates
d. Any challenges that you perceive in completing the part

With three parts to the plan, and four questions above, you will present 12 pieces of information about your approach. While there is no minimum length for this assignment, a one- or two-paragraph response will most likely not provide the reader with sufficient detail to demonstrate that you have (a) thought in depth about the assignment and (b) have in place a work plan that will allow you to begin work on the project starting in Week Three and that will ultimately allow you to succeed.

HR Change Management Plan Overview
This overview discusses the HR change management plan, which is the final individual assignment in HRM 590. It will cover the following:
1. What is a change management plan?
2. Why create a change management plan?
3. Tips and cautions for preparing a change management plan.
4. Components of a change management plan, and the final assignment.
Many leaders are in the process of attempting to introduce cultural change to their organizations. The cultural change may be driven by a major, large-scale change that the organization is trying to implement (e.g. cultural transformation, lean manufacturing, TQM, becoming a learning organization, building an innovative culture) or may be the result of a major ?organizational event,? such as mergers/acquisition, top leadership changes, or restructuring/downsizing. According to Jennifer LaClair and Ravi Rao (2002), the ability for an organization to make big changes is directly related to ?employees? capacity to adapt to a new order? (p. 17). Thus, a key strategic role for Human Resources involves creating an appropriate change management plan that increases employees? capacity to embrace and implement the change. While it is possible that HR may be the primary leader of the change. More often, however, HR works with an executive who is championing the change, and HR?s role is to help develop and implement the change plan (as opposed to creating it and implementing it by itself).

In Week One, students considered the value of HR as a strategic business partner. This project will demonstrate a specific strategic role that HR plays ? and will illustrate the ways in which HR can be instrumental in the organization?s ability to achieve its business objectives. This change management plan should be prepared for the student?s own organization, or an organization with which the student is very familiar, and for which the student can obtain the information necessary to complete the assignment.
?Would you tell me, please, which way I ought to go from here??
?That depends a good deal on where you want to get to,? said the Cat.
?I don?t much care where?? said Alice.
?Then it doesn?t matter which way you go,? said the Cat.
?As long as I get somewhere,? Alice added as an explanation.
?Oh, you?re sure to do that,? said the Cat, ?if you only walk long enough.?
(Lewis Carroll, Alice in Wonderland)
Statistics suggest that as many as 80 percent of all major change initiatives fail to achieve their objectives (Stebel, 1996, cited in Dobson, 2001). While there are many reasons for these failures, one of the key reasons is that inadequate change management plans were created on the front-end. A good change management plan includes a well-thought out process that enables the organization to consider where it wants to go ? and guides it through the process of arriving at that destination.
In considering what type of major, large-scale change you, as a student, want to use for your change management plan, keep the following in mind:
1. How can I use my own organization for this plan without violating confidentiality agreements?
2. There will be elements of an HR change management plan that may be more difficult to develop without specific information about current policies. In some cases, organizations may be reluctant to share that information. In these cases, you may describe what you believe to be the current policies ? along with recommendations for how these policies might need to change to support the new initiative.
Note: This is a ?typical? list of components in many change management plans. Organization or industry circumstances may dictate that items be added or deleted.
1. Executive Summary (required for final change management plan)
2. In preparing the executive summary, keep in mind that the summary will probably be the only part of the plan top management will review. It will be assumed that the full document provides all the support needed to reinforce both your conclusions and recommendations. For that reason, it is imperative that any recommendations you make in the summary be fully documented in the full plan, and that no conflicts exist between the summary and the plan. As you plan the summary, decide which conclusions and recommendations you consider the most important for management to accept.
3. Your summary should be 700-1,400 words that highlight the conclusions from each section of the plan. Key findings and supporting data can be in bullet format. Conclude with a summary of recommended future action.
4. Table of Contents (required for final change management plan)
5. Organizational Analysis
a. Proposed Change?What is the proposed change? Why is this change of value to the organization?
1) What performance opportunities or enhancements will result from this change?
2) Why is it important to achieve these performance improvements?
3) What has been done in the past to address these performance issues?
4) Who are the stakeholders who will be affected (directly or indirectly) by this change?
5) How does the change proposed align with the overall strategy?
6) What are the time frame and key hurdles for the change?
b. HR?s Role?What role should HR play in your organization with regards to leading a large-scale organizational change?
1) What role has HR played in other organizational changes?
2) How is HR structured, and where does it currently report?
3) How is HR viewed within the organization?
4) What issues, if any, might the answers to these questions create for this change?
c. Organizational and Individual Resistance?What type of organizational and/or individual resistance to change might you expect to see?
1) Be specific ? with examples of the interdependencies that exist in the organization, and how resistance to change may manifest itself.
2) What will you do to reduce organizational and/or individual resistance to change?
3) Do employees have the skills and knowledge required to implement this type of change successfully? If not, how will you address the lack of skills and/or knowledge?
4) What motivational or attitude issues might arise? How will you address them?
d. Costs and Benefits?What are the costs and benefits of the proposed change? How do you know?
e. Measuring Success?How will you evaluate the success of the change process? How will you know when the change is ?completed? from the perspective of various stakeholders?
f. Exit Strategy?How will you end the change process and institutionalize the change?
6. Plan and Timetable
a. Target Group?Who is the target of this change (group or groups of people)? How will you achieve buy-in from each of these groups, as well as any other affected stakeholders? What are the needs of each of the stakeholder groups (how they will evaluate whether the change is successful)?
b. Objectives?What are the clearly defined objectives for the change process? Are they consistent with corporate mission statement and objectives? Are they measurable? Attainable?
c. Strategies?What change management strategies will you use to implemented the change? Why is each of these strategies important? How do these support your organization?s business strategies?
1) Identify all change activities in which targeted groups will participate (e.g. skill training programs, organizational restructuring, information system upgrade, business process reengineering, etc.).
2) How might disciplines of the learning organization support the desired change?
d. Steps?What specific steps will you take to implement these strategies? What is the timeline for these steps?
e. Develop action steps, responsibilities, due dates, deliverables, and so on, for each intervention.
f. Organization?Are there clear lines of responsibility for all activities, including the role of HR? Does one individual have clear responsibility for leading the change effort? Who else should be involved in the change process? Are there adequate communications planned for the organization? How will the change affect other areas of the organization? Should the organizational structure be changed? Why or why not?
g. Communication ? How will you communicate the changes? Will your communication be different for those groups who are directly affected versus those who are tangentially affected?
h. Project Management ? How will you monitor, control and report status as the project progresses?
7. HR Policies and Practices
a. Recruitment practices?How will the organization?s recruitment and selection practices change after this plan is implemented? Why?
b. Retention practices?How will this change aid in the retention of employees? What will you have to pay attention to during the change in order to retain those employees whom you wish to retain? Why?
c. Reward practices?Will your organization?s current reward system and practices support the change? If so, why? If not, what will need to change? Why?
d. Training and development practices?What new skills and competencies will employees need in order to be successful after the change is implemented? Why? How will they obtain these skills and competencies?
e. Supervisory training?What new skills will managers and supervisors need after the change is implemented? Why? How will they obtain these skills and competencies?
f. Employee relations policies and procedures?What, if any, HR policies and procedures will need to change? Why? What are the implications of not changing these policies and procedures?
8. Sources
Include a list of sources used to prepare this plan, including at least 10 peer-reviewed, current sources from the UOP library.
Dobson, D.M. (2001). Big change programmes: Increasing the likelihood of success. Journal of Change Management, 2(1), 7-22. Retrieved December 16, 2003, from EBSCOhost database
LaClair, J.A. & Rao, R.P. (2002). Helping employees embrace change. McKinsey Quarterly, 4, 17-21. Retrieved December 16, 2003, from EBSCOhost database

Recruit, develop, and retain a competent, committed, and diverse workforce that provides high quality service to veterans and their families.

Purpose and Outcomes:
Employees are the foundation of the Department of Veterans Affairs and the key to its success. The purpose of this objective is to ensure that VA has the workforce it needs to serve veterans and their families, today and in the future. The 21st Century presents VA with an unprecedented set of human capital challenges ? an aging workforce, a shifting and expanding mission, a tight and competitive labor market, and the emergence of profound new echnologies that present both risks and opportunities. VA?s ability to capitalize on these challenges willdetermine the extent to which the goals and strategies laid out in this strategic plan are achieved. Each of the major themes incorporated
in this plan ? enhanced health care delivery, expedited claims processing, expansion of memorial and burial programs, partnerships,accountability ? can come to life only through the efforts of a workforce with the capabilities, competencies, commitment, and compassion to
make it happen. Investing in, cultivating, and
valuing employees is one of VA?s highest

Strategies and Processes:
VA will recruit, support, and retain a knowledgeable, diverse, engaged, and continuously learning workforce. We will develop a comprehensive and coherent workforce development plan that incorporates the High Performance Development Model (HPDM), succession planning, diversity
training, and Alternative Dispute Resolution
(ADR) orientation.

*Human Capital Planning
VA is institutionalizing a national workforce planning system to facilitate the strategic management of its human resources. VA?s workforce planning strategies include:
? Implementation of Departmental policy prescribing objectives, roles, and the process for the development of
workforce and succession plans for each VA organizational component, inclusion of diversity and leadership analyses, and alignment of the workforce planning system with other key management processes;
? Development of a Strategic VA Human Management Capital Plan;
? Implementation of measures to assess progress on program goals identified in organizational workforce plans;
? Integration of workforce planning accountability measures in performance plans of VA senior executives and
managers; and ? Enhancement and/or establishment of management information systems to support the workforce planning function.

VA will address issues of under-representation and promote efforts to ensure that its workforce reflects the diversity of the customers we serve.

68 FY 2003 - 2008 STRATEGIC PLAN
Objective E.1
Diversity is essential to building a creative and innovative environment to address the needs of the veterans and their families. To foster this type of environment, VA will:
? Establish a One VA diversity business model based on effective workforce and succession planning, comparisons to the Relevant Civilian Labor Force (RCLF), targeted recruitment, and management tracking of progress;
? Establish a VA Diversity Advisory Council to examine and monitor VA?s Employee Diversity Profile;
? Establish and communicate a diversity scorecard and competencies to VA leaders; and
? Reward VA leaders for crosscutting diversity accomplishments.

Professional Development
To foster world-class service to veterans and their
families, VA must maintain a workforce with the
needed capabilities, competencies, and commitment. VA has a wealth of valuable leadership and development programs, from elearning to Senior Executive Development. To further advance learning and performance throughout the Department, VA will adopt the High Performance Development Model (HPDM)
as its framework for employee development. The model guides the employee development activity by directing management practices and policies to ensure:
? Core competency development;
? Continuous learning;
? Continuous assessment;
? Coaching/mentoring;
? Linkage with performance management; and
? Performance-based hiring.

Further, VA will evaluate the relevance, impact,
and capacity of leadership development programs to ensure that they are aligned with mission requirements and establish Career Intern Programs to meet future workforce needs.

Alternative Dispute Resolution (ADR)
VA will continue to develop an effective way for
measuring the success of the Alternative Dispute
Resolution (ADR) Program. VA recently
developed an ADR web-based tracking system
to collect data that will be annually analyzed so
that benchmarks can be identified and
accomplishments measured.
VA will conduct ADR/Mediation Awareness
Training sessions for all employees to ensure that
employees are aware of the ADR and mediation
tools that can be used to effectively resolve
workplace conflicts and disputes. By employees
being aware of and using these tools, VA
anticipates that this will effectively help reduce
EEO complaints activity and workplace
disputes, which is costly to VA. VA also expects
to derive intangible benefits such as improved
morale and productivity, reduction in future
disputes, repaired relationships, improved
customer service, and employee trust.
Recruitment and Marketing
VA must remain competitive with the private
and non-profit sectors in recruiting qualified
candidates if it is to achieve our strategic goals.
VA is a key employer in the Federal Government,
has one of the most distinguished and unique
missions, has nationwide job opportunities, can
provide numerous opportunities for growth, and
offers many appealing benefits and work-life
programs. VA will fully capitalize on these
assets to market career opportunities. Having a
presence in the job market, whether or not
currently hiring, is essential to cultivating and
maintaining relationships that benefit VA now
and in the future. VA will:
? Develop a recruitment and marketing
plan that includes provisions for an
assessment of current efforts throughout
the Department and maximizes use of
student intern and Presidential
Management Intern programs;
69 FY 2003 - 2008 STRATEGIC PLAN
Objective E.1
? Enhance outreach efforts to colleges,
universities, military discharge centers,
and other potential recruitment sources
with a strong emphasis on targeted
recruitment aimed at minority
populations underrepresented in the
? Explore the use of automated application
and staffing tools to simplify and
streamline the hiring process;
? Develop an automated entrance interview
for newly appointed employees to
determine why they chose VA and use
such information to drive VA?s
recruitment and marketing business
? Develop an automated and consistently
used exit interview process to help
identify why employees leave the
Department, and use the information
gathered to address and rectify retention
? Support government-wide efforts to
streamline and simplify the Federal hiring
process; and
? Work with DoD to develop methods to
facilitate recruitment, retention, and
potential sharing of personnel in positions
critical to the Departments?
complementary missions.
Performance Culture
Employee performance is integral to VA?s ability
to accomplish its mission. To ensure that VA
has a results-oriented and high-performing
workforce, that it differentiates between high
and low performance, and that individual and
team performance are linked to organizational
goals, VA will implement a Department-wide,
multi-tiered performance appraisal system and
institute a performance awards program. VA
will also enhance its current Senior Executive
Performance Review Board process to ensure
that Executives are held accountable for
achievement of strategic goals and workforce
External Factors:
In conjunction with the economy (job-market/
competitive salary issues) and labor force
growth rates, VA recognizes that funding to
implement HR strategies will be the key to
recruiting and retaining a highly skilled
70 FY 2003 - 2008 STRATEGIC PLAN
Objective E.1
75% Percent of VA organizational components that have
implemented the High Performance Development Model
Workforce Planning
Service Delivery Measures
Objective E.1
Outcome Measures
FY 2004 FY 2008
Performance Targets
Percent of VA employees who will be trained in ADR as an
option to address workplace disputes
Percent of employees who respond favorably when surveyed
about their job satisfaction
80% 100%
65% 75%
Percent reduction in the average time it takes to recruit and
fill vacancies in mission-critical positions from the FY 2003
10% 60%
Performance Measures
Alternative Dispute
Resolution (ADR)
One VA Employee
Satisfaction Survey
Percent increase in the number of VA job announcements for
which applications are accepted online
100% 38%

module Managing performance course Human resource management


After reviewing Exhibit 2, list what you regard as the major problems with the form used by the company to evaluate performance

What revisions to the form would you suggest? How specifically should the form or dimensions be changed to make the performance-appraisal system more effective?

Suppose the firm wants to use the form for employee feedback(i.e to provide feedback to employees on their strengths and weaknesses). Do you think the instrument will be useful for this purpose? Why or why not? What if any revisions would you suggest so that the form can be used for employee development ?

Suppose ABC has used this form to both promote people and make merit pay adjustments. Suppose also that ABC has been informed that 6 employees belonging to minority groups have claimed discrimination based on promotion and pay policies. What (if any) advice can you give the company? What data should ABC evaluate?

Use the scan that i will send you and critical thinking

Bias Motivation Is a Vital

this segment of our ongoing case, you will be identifying key transformation or throughput processes and looking at the relationships between them. To do this you will be drawing on the Burke-Litwin Causal Model. Thus, you will need to read the article referenced on the background information page.

The Burke-Litwin is a complicated model and is, perhaps, too big for an analysis of this size. For this reason, you are going to limit your analysis to those transactional variables identified in the article. A diagram of these variables and how they interact are shown in Figure 3 on page 531. A discussion of the seven variables starts with Structure on page 532 and ends with Motivation on page 533. But you should read the paper from the beginning through the middle of page 534.

The seven transactional variables are:

Structure (Burke-Litwin describes structure as the arrangement of the functions, people responsibilities, authorities, communication and interactions in a way that supports the organization's mission, goals and strategy. Identify the organizational structure of your company, and comment on how well it fits - or not - with its strategy , as described in module 2. Be sure to specify the structure by type: matrix, team based, functional or product departmentation, organic/mechanistic, etc..)
Tasks and Skills (Unique or core competencies)
Management practices (e.g. participative or centralized decision making)
Systems and Policies (information systems, financial, marketing, production, human resources, etc.)
Work unit climate
Individual needs and goals
Figure 3 on page 531 shows that the Individual and Organizational Performance is influenced by the Motivation factor. And, the Motivation factor interacts with three factors: Task and Skills, Individual Needs and Values, and Work Unit Climate. It also shows other interactions.

Research your company on its throughput variables. This may take some digging, since companies do not usually provide this inside information liberally. You may have to make some inferences.

Make a Case that the amount of Motivation in your chosen company has a direct effect on the Performance. In Case 3, you made a case for the Performance of your organization. In Case 4, you need to show that the Motivation in your company is a primary factor in generating this performance. In order to make this case, you need to generate some backing evidence and data.
Case Expectations: In order to make your case you need to:
Identify and briefly discuss each of the throughput variables in your company.
Based on Figure 3 (page 531) explain how these variables interact.
Determine how these interactions generate the amount of Motivation in the company.
Make a Case for your proposition on how Motivation affects the companys Performance.
Be sure to include your references. The 4-6 page paper is due by the end of the module.

Strayer University, or Strayer Education, Inc. as it is formally known, has a history of more than a century in providing business education for working adults. Dr. S. Irving Strayer founded the Strayers Business College in 1892, with the primary purpose of providing professional education to adults who have already entered the workplace. This is a purpose that is still honored by Strayer Education, Inc. today. The primary output of the university is therefore education to working adults, with concomitant factors such as student support, appropriate educational technology, and instructor expertise. Given the growth of the university over the period of its existence, the conclusion is that its output performance has been high.
The school was renamed Strayer College in 1969, when it received licensure to offer Bachelor of Science degrees, and it received permission to offer Master of Science degrees in 1987. Strayer Education, Inc. was founded in 1996 as a component of the College to raise expansion capital. Strayer College obtained university status in 1998, and Strayer Education, Inc. completed a major recapitalization process for the university in 2000. This included new senior management, headed by Robert S. Silberman.
Today the university has more than 56,000 students and has a reputation as one of the best-capitalized and most successful providers of proprietary higher education. This has only been achieved by continuous attention to excellence in terms of outputs.
Specifically, Strayer Universitys outputs can be classified as business education. Clients are generally working professionals who wish to further their business education. Financial assistance is also a component of these outputs, and is granted to prospective students who are considered to deserve it on the grounds of excellence in their field of work or study. Furthermore, staff are chosen in terms of the excellence of output that they can deliver. Generally, education providers are those who have worked in their particular field of education. They therefore have both educational skill and expertise in their field of study in order to provide students with a balanced education in the chosen field of study. Specific fields of study are all aimed towards business education. These include fields such as Business and Management, Computer Science and Engineering, Education and Teaching, Family and Social Work, Hospitality, Liberal Arts, Medical Administration, and Security and Law Enforcement. Degrees range from Associate to Masters Degrees.
In order to enable working adults to study conveniently at the University, courses are presented from an online platform. Hence, technological outputs also need to be optimized, with an easy platform for students to access study materials. Here also, performance is high, as indicated by the student enrolment numbers, satisfaction reports, and general reputation of the university.
Organizational performance is measured by means of student enrolment figures, revenue, net income, and earnings per share. From the year 2002-2009, Fall Term student enrolment increased from 16,500 to 54,300. Revenue increased from $116.7 million to $511.9 million. Net income rose from $25.8 million to $105.1 million, while earnings per share increased from $1.78 to $7.60 (Strayer Education, Inc., Financial Performance, 2010). These performances have therefore been exceptional, particularly from 2008 to 2009.
According to a Strayer University press release (2010), the Universitys performance improved even more for the first three months of the year, with revenues rising by 27% to $157.9 million, income from operations by 26% to $59.9 million, and net income at 25% higher, coming to $47.6 million. Student enrolment numbers for the Spring term were also at record highs, amounting to 55,970, which is 22% higher than those entering the university during Spring 2009, performance in all these areas were therefore excellent.
The structure of the Universitys employees include managers and employees, with top management made up of six persons, each with varied expertise in the fields of finance, communication, law, leadership, and education. Each persons task is to optimize outputs in the various required fields of university management.
It has been mentioned above that staff are chosen on the basis of the field expertise as well as educational excellence (Strayer University, 2010). Staff and faculty are dedicated not only to the teaching and learning process, but also to the students themselves. Input by these individuals concern the clients directly, and is provided in the form of direct service. All staff are available for consultation outside of classroom hours, to provide extra help to students who need this. In addition to such personal communication, education is also provided in a practicable way, so that students can use the education they receive immediately within their existing workplace or when entering a new profession.
Groups are identified both internally and externally. Within each campus, the University has functional groups in the frm of various faculties, including Business and Management, Liberal Arts, and so on, to cater for each subject field offered. Within each faculty, various departments specify directions of study such as Business Administration, Accounting, Public Administration, and Criminal Justice, among others. The student body is the client group identified, with both campus and online students receiving education.
The average age of the student body is 34, because of the nature of education offered by the University. Students are able to balance their home, family, and university life because of the online and night class facilities offered. Students are also generally very goal-oriented, being that they have been in a profession for some time, and that they have specific career goals that they are seeking to further by means of their studies. This is a contributing factor to the success rate of Strayer University in terms of their educational product outputs.
Externally, groups are defined in terms of geographic regions. In his 2009 annual letter to shareholders, Robert Silberman indicated that uniform high demand for Strayers educational services across the country has driven significant growth of geographic expansion. This has however been limited by Strayer Universitys concern with a proper focus on academic quality. According to the director, it is much easier for administrators and academic deans to keep track of academic performance when campuses are located within a reasonable travel distance. Strayer University has therefore expanded from its base in Washington D.C. to the mid-atlantic and southeast regions of the United States. Nevertheless, growth has been significant, with a current total of 31 new campuses operating for three years or less.
Academic outputs are therefore ensured by a hands-on approach, with academic staff regularly visiting campuses to maintain uniformity of quality. Students attending any Strayer University campus or online environment are therefore assured of the highest quality of education that is not only academically relevant, but also in the practical business world.
Both functional and geographic groups therefore work together to reach the Universitys overall goal of excellent business education to adult students. Faculties and departments focus upon the most relevant and up-to-date presentation material and technology, while individual lecturers commit themselves to providing each student with the specialized attention and care they need to make a success of their studies and careers.
In this way, there is an integrated commitment from top management to individual professors and administrators to further the goals and outputs of the University. Excellence is therefore ensured, and the output performance of the University and all the groups functioning within it, can be said to be at a very high level.
Silberman, Robert S. (2009). Letter to Shareholders. Strayer Education, Inc. Annual Report 2009. Retrieved from

Strayer Education, Inc. (2010). Financial Performance. Retrieved from

Strayer Education, Inc. (2010, Apr. 29). Press Release reporting Record First Quarter 2010 Revenues and Earnings; and Record Spring Term 2010 Enrolments. Retrieved from

Strayer University (2010). CTI College Search. Retrieved from

A Causal Model of Organizational Performance and Change
Burke, W. Warner, Litwin, George H.. Journal of Management. Bloomington: Sep 1992. Vol. 18, Iss. 3; pg. 523, 23 pgs

Abstract (Summary)
Two important lines of thinking that must be explored in order to provide a model of organizational performance and change are: 1. understanding more thoroughly how organizations function, and 2. understanding how organizations might be changed deliberately. A causal model of organizational performance and change is presented that owes its original development to the work of Litwin and his associates (1968). Change is depicted in terms of both process and content. Transformational change occurs as a response to the extended environment. It directly influences organizational mission and strategy, the organization's leadership, and culture. In turn, the transactional variables are affected. These variables, structure, management practices, and systems, are more operational and more incremental with respect to organization change. The transformational and transactional factors together affect motivation; this in turn influences performance.

Jump to indexing (document details)
Full Text (9637 words)

Copyright JAI Press Inc. Sep 1992

To provide a model of organizational performance and change, at least two lines of theoritizing need to be explored--organizational functioning and organizational change. The authors go beyond desciption and suggest causal linkages that hypothesize how performance is affected and how effective change occurs. Change is depicted in terms of both process and content, with particular emphasis on tranformational as compared with transactional factors. Tranformational change occurs as a response to the external environment and directly affects organizational mission and strategy, the organization's leadership, and culture. In turn, the transactional factors are affected--structure, systems, management practices, and climate. These tranformational and transactional factors together affect motivation, which, in turn, affects performance.

In support of the model's potential validity, theory and research as well as practice

Organization change is a kind of chaos (Gleick, 1987). The number of variables changing at the same time, the magnitude of environmental change, and the frequent resistance of human systems create a whole confluence of processes that are extremely difficult to predict and almost impossible to control. Nevertheless, there are consistent patterns that exist--linkages among classes of events that have been demonstrated repeatedly in the research literature and can be seen in actual organizations. The enormous and pervasive impact of culture and beliefs--to the point where it causes organizations to do fundamentally unsound things from a business point of view--would be such an observed phenomenon.

To build a most likely model describing the causes of organizational performance and change, we must explore two important lines of thinking. First, we must understand more thoroughly how organizations function (i.e., what leads to what). Second, given our model of causation, we must understand how organizations might be deliberately changed. The purpose of this article is to explain our understanding so far. More specifically, we present our framework for standing--a causal model of organizational performance and change. But, first, a bit of background.

In our organizational consulting work, we try very hard to link the practice to sound theory and research. The linkage typically is in the direction of theory and research to practice: that is, to ground our consultation in what is known, what is theoretically and empirically sound. Creation of the model to be presented in this article was not quite in that knowledge-to-practice direction, however. With respect to theory, we strongly believe in the open system framework, especially represented by Katz and Kahn (1978). Thus, any organizational model that we might develop would stem from an input-throughput-output, with a feedback loop, format. The model presented here is definitely of that genre. In other words, the fundamental framework for the model evolved from theory. The components of the model and what causes what and in what order, on the other hand, have evolved from our practice. To risk stating what is often not politic to admit in academic circles, we admit that the ultimae development of our causal model evolved from practice, not extensive theory or research. What we are attempting with this article, therefore, is a theoretical and empirical justification of what we clearly believe works. To be candid, we acknowledge that our attempt is not unlike attribution theory--we are explaining our beliefs and actions ex post facto: "This seemed to have worked; I wonder if the literature supports our action."

Our consulting efforts over a period of about 5 years with British Airways taught us a lot--what changes seemed to have worked and what activities clearly did not. It was from these experiences that our model took form. As a case example, we refer to the work at British Airways later in this article. For a more recent overview of that change effort, see Goodstein and Burke (1991).


From the perspective of both research about organizations and consultation to organizational clients, we have experienced some frustration about most if not all current organizational models that do little more than describe or depict. A case in point is the 7S model developed by Pascale and Athos (1981) and further honed by Peters and Waterman (1982). Parenthetically, let us quickly add that by comparing our model with others, particularly those the reader may be familiar with, if not fond of, we wish to clarify the nature of our thinking and, ideally, its distinctive contribution, not cast our comments in a competitive manner.

The strengths of the 7S model are (a) its description of organizational variables that convey obvious importance--strategy, structure, systems, style, staff, skills, and shared values (as will be seen, we have incorporated these dimensions in one form or another in our model)--and (b) its recognition of the importance of the interrelationships among all of these seven variables, or dimensions. The 7S model, on the other hand, does not contain any external environment or performance variables. The model is a description of these seven important elements and shows that they interact to create organizational patterns, but there is no explication of how these seven dimensions are affected by the external environment. Nor do we know how each dimension affects the other or what specific performance indices may be involved.

Some organizational models that in our judgment are largely descriptive do at least stipulate certain "shoulds." Weisbord (1976), for example, states that the role of the leadership box in his six-box model is to coordinate the remaining five. The Nadler-Tushman (1977) model is one of congruence. They argue that for organizational effectiveness the various boxes composing their model should be congruent with one another (e.g., organizational arrangements, or structure, should be congruent with organizational strategy).

Even contingency models of organizations, which imply that "it all depends" and that there is no one best way to organize or to manage (e.g., Lawrence & Lorsch, 1969, and Burns & Stalker, 1961, before them) have certain causal implications. Organizational effectiveness is, in part, contingent on the degree of match between the organization's external environment (whether static or dynamic) and the organization's internal structure (either mechanistic or organic).

To some degree, then, models such as Nadler-Tushman and the positions taken by Burns and Stalker and by Lawrence and Lorsch suggest a cause-effect linkage. Nadler and Tushman at least imply that little or no congruence between, say, strategy and structure produces low organizational performance, and the contingency models posit that an improper match between the organization's external environment and its internal structure "causes" organizational ineffectiveness. The issue in both is that the number of items that might be congruent (or matched in the case of contingency) is great and the models provide neither a formula for determining which are central nor an objective means for knowing when congruence or matching has occurred or what levels of congruence/matching or incongruence/ nonmatching produce desirable or undesirable effects. In short, our desire is for a model that will serve as a guide for both organizational diagnosis and planned, managed organization change--one that clearly shows cause-and-effect relationships and can be tested empirically.

With respect to the latter half of this desire, a model of organization change, we are attempting to provide a causal framework that encompasses both the what and the how--what organizational dimensions are key to successful change and how these dimensions should be linked causally to achieve the change goals. In other words, we are attempting to integrate two categories of change theory from the world of organization development (OD), what Porras and Robertson (1987) as well as Woodman (1989) refer to as (a) implementation theory and (b) change process theory. The former concerns activities that must be undertaken to affect planned change (e.g., survey feedback) and the latter refers to specific changes that need to occur as a consequence of these implementation activities (e.g., embracing a particular value such as emphasizing service to customers more than adhering rigidly to procedures regarding how to deal with customers, rather than vice versa). As these OD researchers have pointed out, theory in OD is typically either one or the other--implementation or change process. With the model presented in this article, we are striving for an integration of both theories.

An additional desire, as noted already, is to link what we understand from our practice to what is known from research and theory. It is clear that, for example, the 7S model came from consulting practice (see Peters & Waterman, 1982: 9-12), and we know firsthand that Weisbord's six-box model evolved from his practice. We believe that these models have valid components because they are in fact based on practice and do not convey irrelevant or the so-called ivory tower thinking. Yet these and other models do not go far enough. For example, such critical dimensions as the external environment, performance, and organizational culture are not accounted for sufficiently. Moreover, depicting organizational models as simply as possible can be beneficial, especially when attempting to explain systemic ideas to people who are relatively naive about large organizations; however, reality is much more complex than most, if not all, models depict. And when attempting to account for organizational functioning and change at the same time, we must depict a considerable degree of complexity while maintaining coherence--no mean feat. We know of no organizational models that attempt this degree of complexity, coherence, and predictability (i.e., causality).



The early, original thinking underlying the model presented here came from George Litwin and others during the 1960s. In 1967, the Harvard Business School sponsored a conference on organizational climate. The results of this conference were subsequently published in two books (Litwin & Stringer, 1968; Tagiuri & Litwin, 1968). The concept of organizational climate that emerged from this series of studies and articles was that of a psychological state strongly affected by organizational conditions (e.g., systems, structure, manager behavior, etc).

The importance of this early research and theory development regarding organizational climate was that it clearly linked psychological and organizational variables in a cause-effect model that was empirically testable. Using the model, Litwin and Stringer (1968) were able to predict and control the motivational and performance consequences of various organizational climates established in their research experiment. They were working with motivation analysis and arousal techniques developed by McClelland (1961), Atkinson (1958), and others over a period of more than 20 years.


In recent years, there has been a great deal of interest in the concept of organizational culture. Drawn from anthropology, the concept of culture is meant to describe the relatively enduring set of values and norms that underlie a social system. These underlying values and norms may not be entirely available to one's consciousness. They are thought to describe a "meaning system" that allows members of that social system to attribute meanings and values to the variety of external and internal events that are experienced. In this article, we attempt to be very explicit about the distinction between climate and culture. Climate is defined in terms of perceptions that individuals have of how their local work unit is managed and how effectively they and their day-to-day colleagues work together on the job. The level of analysis, therefore, is the group, the work unit. Climate is much more in the foreground of organizational members' perceptions, whereas culture is more background and defined by beliefs and values. The level of analysis for culture is the organization. Climate is, of course, affected by culture, and people's perceptions define both, but at different levels. We attempt to clarify in more depth these distinctions later in the article, as has Schneider (1985) before us. Further, we are attempting to create a model of organizational behavior within which both climate and culture can be described in terms of their interactions with other organizational variables. Thus, we are building on earlier research and theory with regard to predicting motivation and performance effects.

In addition, we are attempting to distinguish between the set of variables that influence and are influenced by climate and those influenced by culture. We postulate two distinct sets of organizational dynamics, one primarily associated with the transactional level of human behavior--the everyday interactions and exchanges that more directly create climate conditions. The second set of dynamics is concerned with processes of organizational transformation: that is, rather fundamental changes in behavior (e.g., value shifts). Such transformational processes are required for genuine change in the culture of an organization. In our effort to distinguish between transactional and transformational dynamics in organizations, we have been influenced by the writings of James McGregor Burns (1978) and by our own experience in modern organizations.


Figure 1 is a diagram summarizing the model.(Figure 1 omitted) As noted earlier, this model owes its original development to the work of Litwin and his associates (Litwin & Stringer, 1968; Tagiuri & Litwin, 1968), and has been refined through a series of studies directed by Burke and his colleagues (Bernstein & Burke, 1989; Michela, Boni, Schecter, Manderlink, Bernstein, O'Malley, & Burke, 1988). Recent collaboration has led to the current form of this model that (a) specifies by arrows which organizational variable (see the boxes) influences more directly which other variables and (b) distinguishes transformational and transactional dynamics in organizational behavior and change.

Conforming to accepted ways of thinking about organizations from general systems theory (Katz & Kahn, 1978), the external environment box represents the input, and the individual and organizational performance box the output. The feedback loop goes in both directions: that is, organizational performance affects the system's external environment via its products and services, and the organization's performance may be directly affected by its external environment (e.g., a change in government regulations or trends on Wall Street). The remaining boxes in the model represent the throughput aspect of general systems theory.

The total of 12 boxes represent, of course, our choices of organizational variables we consider to be the most important ones. These choices were not made in isolation. We have been influenced by others' thinking. To a large degree, therefore, we have followed precedence. For example, in one form or another, and perhaps using different labels, we have incorporated the seven S's of the McKinsey model explained by Peters and Waterman (1982). The same can be said of Weisbord's (1976) model and the one by Nadler and Tushman (1977). In addition, we have attempted to account for key variables at a total system level, with such variables as mission, strategy, and culture, at a group or local work unit level (e.g., climate) and at an individual level (e.g., motivation, individual needs and values, and job--person match).

It is no doubt an understatement to say that the model is complex. At the same time, however, we recognize the need for the human mind to simplify the rich complexity of organizational phenomena. And though complex to depict and describe, our model, exhibited two--dimensionally, is still an oversimplification. A hologram would be better, but is not available.

Arrows going in both directions are meant to convey the open--systems principle. A change in one (or more) "box(es)" will eventually have an impact on the others. Moreover, if we could diagram the model such that the arrows would be more circular--the hologram idea--reality could be represented more accurately. Yet this is a causal model. For example, though culture and systems affect one another, we believe culture has a stronger influence on systems than vice versa. Kerr and Slocum (1987), for example, have provided data that suggest a strong linkage between corporate culture and the organization's reward system. They show how a company's reward system is a manifestation of its culture. They also point out that the organization's reward system can be used to help change the company's culture. Their data lend support to the linkage notion. We would simply take their evidence and suggest a step further by arguing that corporate culture (beliefs: and values) determine the type of reward system an organization has. Yet we would strongly agree that to change culture the reward system should be used (i.e., to reward the behaviors that would reflect the new values we might wish to incorporate).

Displaying the model the way we have is meant to make a statement about organizational change. Organizational change, especially an overhaul of the company business strategy, stems more from environmental impact than from any other factor. Moreover, in large scale or total organizational change, mission, strategy, leadership, and culture have more "weight" than structure, management practices, and systems: that is, having organizational leaders communicate the new strategy is not sufficient for effective change. Culture change must be planned as well and aligned with strategy and leader behavior. These variables have more weight because when changing them (e.g., organizational mission), they affect the total system. Changing structure, on the other hand, may or may not affect the total system. It depends on where in the organization a structural change might occur.

We are not necessarily discussing at his stage where one could start the change, only the relative weighting of change dynamics. When we think of the model in terms of change, then, the weighted order displayed in the model is key. This point will be elaborated in the next section.

To summarize briefly so far, the model shown in Figure 1 attempts to portray the primary variables that need to be considered in any attempt to predict and explain the total behavior output of an organization, the most important interactions between these variables, and how they affect change. Again, in reality, all boxes would have bi-directional arrows with every other box. We are displaying with our model what we consider the most critical linkages. Later in this article we define each of the variables and give some examples of typical interactions.


The concept of transformational change in organizations is suggested in the writings of such people as Bass (1985). Burke (1986), Burns (1978), McClelland (1975), and Tichy and Devanna (1986). Figure 2 contains a display of the transformational variables--the upper half of the model. (Figure 2 omitted) By transformational we mean areas in which alteration is likely caused by interaction with environmental forces (both within and without) and will require entirely new behavior sets from organizational members.

It is true, of course, that members can influence their organization's environment so that certain changes are minimized (e.g., lobbying activities. forming or being involved in trade associations and coalitions). Our feedback loop in the model is meant to reflect this kind of influence. Our point here is that for the most part organization change is initiated by forces from the organization's external environment (e.g., changes in the competitive environment, government regulations, technological breakthroughs). Not everyone would agree with our premise. Torbert (1989), for example, argues that organizational transformation emanates from transformational leaders, not from the environment. We would agree that strong leaders make a difference, especially in the early stages of their tenure. These leaders are responding, nevertheless, to forces in their organization's environment, we contend. This leader responsiveness does not mean passivity. Astute leaders are people who scan their organization's external environment, choose the forces they wish to deal with, and take action accordingly. This leadership process is neither passive nor in isolation, as Torbert's contention might imply.

Figure 3 contains the transactional variables--the lower half of the model.(Figure 3 omitted) These variables are very similar to those originally isolated earlier by Litwin and, in part (structural effects on climate), later by Michela et al. (1988). By transactional we mean that the primary way of alteration is via relatively short-term reciprocity among people and groups. In other words, "You do this for me and I'll do that for you."

This transformational--transactional way of thinking about organizations that we are using for the model, as noted earlier, comes from theory about leadership. The distinction has been characterized as differences between a leader and a manager. Burke (1986) combined both the theorizing of Zaleznik (1977) and Burns (1978)--that is, transformational (Burns)-leader (Zaleznik) and transactional (Burns)-manager (Zaleznik)--to clarify further these distinctions and to hypothesize how each type, leader or manager, could empower others effectively. With respect to the model, and in keeping with the leader (transformational)--manager (transactional) distinctions, transformational change is therefore associated with leadership, whereas transactional change is more within the purview of management.

With this broad distinction of transformational-transactional in mind, we now proceed with a more specific explanation of the model. And, at the risk of erring on the side of brevity, the next section defines each category or box in the model. With each box definition we have provided at least one reference from the literature that helps to clarify further what we mean.

External environment is any outside condition or situation that influences the performance of the organization (e.g., marketplaces, world financial conditions, political/governmental circumstances). For a broad view of the changing nature of our world economy, see Drucker (1986). For a more specific perspective on how the external environment affects the organization, see Pfeffer and Salancik (1978).

Mission and strategy is what the organization's (a) top management believes is and has declared is the organization's mission and strategy and (b) what employees believe is the central purpose of the organization. Apparently, the mere fact of having a written mission statement is important to organizational effectiveness (Pearce & David, 1987). Strategy is how the organization intends to achieve that purpose over an extended time scale. We prefer Porter's (1985) more recent of conceptualizing strategy (as opposed to, say, the Boston Consulting Group's way) because he links it directly to environment (industry structure), organizational structure, and corporate culture.

Leadership is executives providing overall organizational direction and serving as behavioral role models for all employees. When assessing this category we would include followers' perceptions of executive practices and values. As our model shows, we make a distinction between leadership and management. This difference follows the thinking of Bennis and Nanus (1985), Burke (1986), Burns (1978), and Zaleznik (1977).

Culture is "the way we do things around here." This clear. simple definition comes from Deal and Kennedy (1982). To be a bit more comprehensive in our definition, we should add that culture is the collection of overt and covert rules, values, and principles that are enduring and Guide organizational behavior. Understanding an organization's history, especially the values and customs of the founder(s), is key to explaining culture (Schein, 1983). Also, as stated earlier, culture provides a "meaning system" for organizational members.

Structure is the arrangement of functions and people into specific areas and levels of responsibility, decision-making authority, communication, and relationships to assure effective implementation of the organization's mission and strategy. Perhaps the classic articles on structure and no doubt some of the ones cited most often are by Duncan (1979) and Galbraith (1974). For perspectives about organizational structure and the future, see Jelinek, Litterer, and Miles (1986) and Peters (1988).

Management articles are what managers do in the normal course of events to use the human and material resources at their disposal to carry out the organization's strategy. By practices we mean a particular cluster of specific behaviors. An example of a behavioral management practice is "encouraging subordinates to initiate innovative approaches to tasks and projects." As a practice, two managers may "encourage subordinates" to the same extent, but how specifically each one does it may differ. Thus, we are following the work of such people as Boyatzis (1982), Burke and Coruzzi (1987), and Luthans (1988).

Systems are standardized policies and mechanisms that facilitate work, primarily manifested in the organization's reward systems, management information systems (MIS), and in such control systems as performance appraisal, goal and budget development, and human resource allocation. This category of the model covers a lot of ground. Some references that help to explain what we mean by the subcategories include Lawler (1981) on reward systems, Keen (1981) on MIS, Flamholtz (1979) on control systems, and Schuler and Jackson (1987) with their linkage of human resource management systems and practices to strategy.

Climate is the collective current impressions, expectations, and feelings that members of local work units have that, in turn, affect their relations with their boss, with one another, and with other units. For further clarification of what we mean by climate, see James and Jones (1974), Litwin, Humphrey, and Wilson (1978), and Michela et al. (1988).

Task requirements and individual skills/abilities are the required behavior for task effectiveness, including specific skills and knowledge required of people accomplish the work for which they have been assigned and for which they feel directly responsible. Essentially, this box concerns what is often referred to as job-person match. This domain of the model represents mainstream industrial/organizational psychology. Almost any good textbook, such as Maier and Verser (1982), will provide thorough coverage of this category of the model. On the job side, see Campion and Thayer (1987) for an up-to-date analysis of job design, and for the person side, at the general manager level, Herbert and Deresky (1987) provide a useful perspective on matching a person's talents with business strategy.

Individual needs and values are the specific psychological factors that provide desire and worth for individual actions or thoughts. Many behavioral scientists believe that enriched jobs enhance motivation and there is evidence to support this belief, yet as Hackman and Oldham (1980) have appropriately noted, not everyone has a desire for his or her job to be enriched. For some members of the workforce, their idea of enrichment concerns activities off the job, not on the job. As the American workforce continues to become even more diverse, the ability to understand differences among people regarding their needs and values with respect to work and job satisfaction increases in importance. See, for example, Kravetz (1988) regarding changes in the workforce and Plummer (1989) on our changing values (i.e., more emphasis on self-actualization).

Motivation is aroused behavior tendencies to move toward goals, take needed action, and persist until satisfaction is attained. This is the net resultant motivation: that is, the resultant net energy generated by the sum of achievement. power, affection, discovery, and other important human motives. The article by Evans (1986) is especially relevant because his model for understanding motivation in the workplace is not only multifaceted but the facets are very similar to our model.

Individual and organizational performance is the outcome or result as well as the indicator of effort and achievement (e.g., productivity, customer satisfaction, profit, and quality). At the organizational level the work of Cameron, Whetten, and their colleagues is especially relevant to this box: see, for example, Cameron (1980), Cameron and Whetten (1982), and Cameron and Whetton (1981), and at the individual level the article by Latham, Cummings, and Mitchell (1981).


In attempting to explain this model so far, we have encountered many questions, but perhaps most have focused on the distinction between climate and culture. An additional explanation is no doubt appropriate.

In our causal model, we argue that day-to-day climate will be a result of transactions around such issues as

1. Sense of direction: effect of mission clarity or lack thereof.

2. Role and responsibility: effect of structure, reinforced by manager practice.

3. Standards and commitment: effect of manager practice, reinforced by culture.

4. Fairness of rewards: effect of systems, reinforced by manager practice.

5. Focus on customer versus internal pressures, standards of excellence: effect of culture, reinforced by other variables.

In contrast, the concept of organizational culture has to do with those underlying values and meaning systems that are difficult to manage, to alter, to even be aware of totally (Schein, 1985). We do not mean to use culture to describe another way of understanding the short-term dynamics of the organization. Rather, it provides us with a theoretical framework for delving into that which is continuing and more or less permanent. By more or less permanent, we mean that change can be arranged or may come about through the application of uncontrolled outside forces, but it will involve substantial upheaval in all transactional-level systems and will take time.

When we describe culture as the underlying values and meaning systems of an organization, we describe those forces that create the dimensions of climate, those underlying ideas and images around which specific attitudes and behaviors cluster. Thus, when we attempt to alter the organizational cluster, we change the climate framework (i.e., the gauge by which organizational members perceive their work climate). You might even think of such a period as involving a destabilized climate that would have quite distinctive properties of its own. The new organization culture, as it becomes accepted, would create a modified, if not an entirely new set of dimensions around which climate would be perceived, described, and responded to. Take, for example, customer service. The culture change desired is one of establishing a value that the customer comes first, to be served as quickly and as pleasantly as possible with the highest degree of quality, and a norn that behavior in a given work unit should be externally oriented first (i.e., focused on customers or those who members of the work unit serve) and internally oriented second (i.e., how members work together). The impact of this change in the culture--a significant shift of priority--on work unit climate might be to replace a former dimension of teamwork with one of interunit (or customer) relations. Or, at a minimum, this latter focus on unit relations might become an added dimension of climate.


For major organizational change to occur, the top transformational boxes represent the primary and significant levers for that change. Examples from our experience include (a) an acquisition where the acquired organization's culture, leadership, and business strategy were dramatically different from the acquiring organization, even though both organizations were in the same industry, requiring yet a new merged organization to come about, (b) a federal agency where the mission had been modified, the structure and leadership changed significantly, yet the culture remained in the 1960s--obviously a culture change effort--and (c) a high-tech firm where leadership had recently changed and was perceived negatively, the strategy was unclear, and internal politics had moved from minimal (before) to predominant (after). The hue and cry in this latter high-tech organization was something like, "We have no direction from our leaders and no culture to guide our behavior in the meantime." These examples represent transformational change (i.e., the need for some fundamental shifts).

For organizations where the problems are more of a fine tuning, improving process, the second layer of the model serves as the point of concentration. Examples include some changes in the organization's structure, modification of the reward system, management development (perhaps in the form of a program that concentrates on behavioral practices), or conducting a climate survey to obtain a current measure of such variables as job satisfaction, job clarity, and degree of teamwork.

We have been involved recently with one organization where almost all of the model was used to provide a framework for executives and managers to understand the massive change they were attempting to manage. This organization, British Airways, became a private corporation in February 1987, and changing from a government agency to a market-driven, customer-focused business enterprise required quite a change indeed. All boxes in the model have been and still are being affected. Data were gathered based on most of the boxes and summarized in a feedback report for each executive and manager. This feedback, organized according to the model, helped executives and managers understand which of the boxes within his or her organizational domain (or "patch," as the British call it) needed attention.

It is also useful to consider the model in a vertical manner. For example, in one large manufacturing organization (Bernstein & Burke, 1989) we examined the causal chain of culture-management practices-climate. Feedback to executives in this corporation showed how and to what degree cultural variables influenced management practices and, in turn, work unit climate (our dependent variable in this case).


Within the context of general system theory, all variables affect one another, and the hologram notion, introduced earlier, is a useful way to visualize organizational reality. But with respect to organization change, our contention is that external environment has the greatest impact and, internally, the transformational variables (mission/strategy, leadership, culture) have the greatest impact, and next the transactional variables, etc. If we were able to conduct the statistical procedure of path analysis on all variables (boxes) of the model, the beta weights for the downwardly directed arrows would be larger than the beta weights in the opposite direction (e.g., the structure-to-climate direction would be larger than the climate-to-structure one).

What follows are citations of research studies that provide support for our organization change argument. These citations are limited to one or two per "arrow" and do not represent an exhaustive listing.


Because our model is based on open-systems theory, we believe in the causal nature of environments. An excellent framework for understanding this causal relationship is the one provided by Emery and Trist (1965). More specifically and recently, Prescott (1986) has empirically demonstrated how environment influences strategy and, in turn, performance. Miles and Snow (1978) have provided evidence to show that executive perceptions of their organization's and their consequent decision making is directly and causally linked. With respect to organizational culture, if we limit our definition of external environment to industry group, for example, then Gordon (1985), who studied utility companies and financial institutions, has shown that corporate culture is directly influenced by the industry category (external environment) of the firm.


Chandler's (1962) classic study clearly demonstrated the differential impact of strategy or structure. More recently, Miles, Snow, Meyer, and Coleman (1978) have shown how strategy affects structure. And, as noted earlier, company mission apparently influences strategic decisions, which in turn affect performance (Pearce & David, 1987). When mission statements include corporate values and philosophy, or at least imply certain values, they also reflect the organization's culture, as Wilkins (1989) has noted. The influence of culture on policy and systems, in this case the reward system, has been shown by Kerr and Slocum (1987) and Bernstein and Burke (1989) have demonstrated the impact of culture on management practices. It also seems that culture makes a difference with respect to organizational performance: that is, some cultures are more efficient than others (Wilkins & Ouchi, 1983).

It should be mentioned at this stage that we are quite aware of the fact that models may only help us to understand reality; they do not necessarily depict it. With respect to our three transformational boxes, they can be thought of more realistically as being in the minds of organization leaders and as part of their behavior, not in organizational categories. The thinking of Tregoe and Zimmerman (1980) is helpful here. They define nine different categories of strategy, or what they call strategic driving: forces: product or services offered, market needs, technology, production capability method of sale, method of distribution, natural resources, size and growth, and profit-return on investment. They contend that any given company has only one, singular strategic driving force. This idea, incidentally, is similar to Galbraith's (1983) "center of gravity" notion. The strategic driving force is a manifestation of the company leader's beliefs about how to succeed in a particular industry or line of business. Beliefs are part and parcel to corporate culture, and the leadership category is where they (strategy and culture) come together--in the minds of organization leaders and as part of their behavior. When these executives believe differently about which strategy brings success, the company is in trouble (see Burke, 1991, for a case example). Incidentally, in this organizational case, there was a clear need for transformational change; that is, in particular, change in leadership and in corporate culture. In the end, however. at best, there was only a transactional change limited rarely to a modification in the organization's structure.

And, finally, for this transformational category do leaders make a difference organizationally? It is not difficult to find research to verify the hierarchical effect on behavior (i.e., that bosses affect subordinates). One of the early studies that showed how supervisors were directly affected by their bosses' managerial style was Fleishman's (1953). But even through mediating variables, as our model reflects, do leaders have an impact on organizational performance? Surprisingly, little research has been conducted to address this question. And the studies that have are not always consistent with one another. Salancik and Pfeffer (1977), for example, showed that turnover of mayors had little effect on the city's performance. Two more recent studies do provide support, however. Weiner and Mahoney (1981) found that leadership accounted for more variance in organizational performance than other variables, and Smith, Carson, and Alexander (1984), in a longitudinal study, showed empirically that leadership was associated with improved organizational performance.


These variables, structure, management practices, and systems, are more operational and are more incremental with respect to organization change. Although our main variable to consider as the dependent one is climate, structure also has a direct impact on task requirements and individual skills/abilities (job-person match). Systems, especially rewards, also directly affect individual needs and values.

Joyce and Slocum (1984) have shown that both management practices and structure influence climate, and an earlier study by Schneider and Snyder (1975) also demonstrated that climate is affected by the same two variables and by the reward system (i.e., pay and promotion policies). Schneider has also shown a direct linkage between management practices and climate in a series of studies in the service sector (Schneider, 1980; Schneider & Bowen, 1985).

With respect to the impact of structure on variables other than climate, the work of Lawrence and Lorsch (1967, 1969), of course, has shown its influence on management practices. The relationship between structure and systems has been demonstrated in numerous ways, just one example being Ouchi's (1977) study of structure and organizational control. And the relationship between structure and task requirements has also been demonstrated many times, perhaps the work by Galbraith (1977, 1973) being one of the best illustrations.

Regarding the impact of systems, perhaps the most important subsystem of the policy and procedures (systems) box is the organization's reward system. The belief that "people do what they are rewarded for doing" is practically a cliche. Demonstrating this relationship of rewards and behavior in the workplace is not as obvious and straightforward as one might presume, however. Witness the pay-for-performance controversy for a case in point. There is evidence, nevertheless.

Research on gainsharing shows linkage among management practices, climate, and motivation/performance. Gainsharing positively influences performance (Bullock & Lawler, 1984). As Hammer (1988) has noted, however, the presence of worker participation is close to being a necessary condition for success (in particular, Scanlon Plans). In other words, when management establishes a working climate of participation coupled with pay for performance, positive results occur. For more direct evidence that a participatory climate affects productivity, see Rosenberg and Rosenstein (1980).

And for evidence that reward systems affect individual needs/values, and vice versa, see Deutsch (1985). For a more specific example, see the research of Jordan (1986), a field study indicating that Deci's (1975) contention that extrinsic rewards have a negative effect on intrinsic motivation is probably correct.

Another subsystem within the policy and procedures box and one that is intertwined with the reward system is the organization's performance appraisal system. For evidence that this subsystem affects management practices and climate and, in turn, motivation and ultimately performance, see the work of Cummings (1982) and Cummings and Schwab (1973).

Yet another major subsystem within the policy and procedure box is the organization's management information system. Perhaps the latest and broadest research in this area-the impact of information technology on worker behaviors the work of Zuboff (1988). To summarize, these transactional dimensions are central to the model. They affect and are affected by a greater variety of variables than most other dimensions.


With respect to the differential impact of individual needs and values on motivation and job satisfaction, the work of Hackman and Oldham (1980) shows some of the clearest evidence. Among other findings, their research indicates that a majority of people probably have a need for growth and development on the job and therefore would respond to and be more motivated by job enrichment, but not everyone would be so motivated. Among other findings that certain psychologically based interventions affect productivity positively, Guzzo, Sette, and Katzell (1985) more recently have provided evidence that work redesign (i.e., job enrichment) does as well. Compared with other boxes in the model, finding evidence to support our contention that congruence between persons' skills/abilities and job requirements leads to enhanced motivation and, in turn, higher performance is very easy. For a summary of this area of research, see M. J. Burke and Pearlman (1988) and for an example of impressive evidence, see Hunter and Schmidt (1982).


Table 1 provides a summary of the studies that we have cited as preliminary support for the model's validity, particularly in terms of arrows that are in the downward direction. (Table 1 omitted)

A summary word of qualification: The studies we have chosen to demonstrate support for our ideas about organizational performance and change are highly selective. There are no doubt numerous other studies that both support and perhaps question our arguments. The fact that evidence does exist, however, is the point we wish to make.

The evidence that we have cited comes from disparate sources and, with respect to the model, is piecemeal. Ideally, a proper test of the model would be a study that simultaneously examines the impact of all boxes across a variety of organizations. The closest we have come so far is to examine organizational members' perceptions and beliefs: how managers' beliefs about mission and strategy, for example, relate to (if not predict) their perceptions and their subordinates' perceptions of work unit climate. To cite an actual example, at British AirWays one of the performance indices used was perceived team effectiveness. Data were also collected from BA managers regarding their beliefs and perceptions about (a) team manager practices (e.g., degree of empowering behavior toward subordinates), (b) the usefulness of BA's structure toward subordinates, (c) the clarity of BA's strategy, (d) the extent to which BA's culture supports change, and (e) the team's climate (e.g., goal and role clarity). These data categorized according to just these five boxes from the model accounted for 54% of the variance in ratings of team effectiveness for this organization, British Airways (Bernstein, 1987). We are not implying that the model always explains this degree of variance. We are illustrating how the model can be used methodologically for particular client organizations.

Figure 4 shows these relationships diagrammatically from the model as they were applied to the client organization, in this case, BA.(Figure 4 omitted) In another more recent, direct attempt to test the validity of the model in assessing primarily (but not exclusively) the culture of a hospital, Fox (1990) showed significant support for the causal relationships of certain dimensions ("boxes"). Using the model as a causal predictor, her path analysis outcomes demonstrated that leadership, culture, and management practices predicted significant variance in employees' perceptions of work unit climate and organizational performance. The two transformational dimensions, leadership and culture, were clearly the two strongest predictors.


By covering the choice of variables (boxes) that we have selected, we have made an attempt with this article to describe and define an organizational model that, at least at face value, makes good, common sense. Yet others have done this kind of modeling work as well. It is our contention, however, that we have taken an additional step by hypothesizing causality (arrows), particularly in the weighted direction; that is, top-down, the transformational then transactional factors. We have searched and have found, from the literature and from our own work, at least In part, empirical support for this hypothesized causality. We are as a consequence encouraged, and we intend to search further and conduct more search. For a recent and further application of the model in a corporate setting, see Burke and Jackson (1991).

We do not always obtain evidence that supports precisely the causal chain depicted in the model, however. We have found from our experience, for example, that on occasion perceptions regarding strategy or structure explain more variance in ratings of climate or some index of performance than do management practices, usually a heavy indicator. These occasions are when the organization is in the midst of a change in strategy, a change in structure, or both. It may also be that national differences would affect the causal chain in ways that are not quite the same as the model predicts. In the UK, for example, beliefs about "the team" and what constitutes satisfaction may not be the same as American beliefs. When given the opportunity to complain or criticize, the British seem to attribute their feelings of dissatisfaction more toward distant factors--the culture, the structure--than to factors close to home--one's teammates. Americans, on the other hand, are just as likely to criticize their teammates as they are to complain about the inadequate organizational structure.

Finding exceptions to the causal implications of the model does not detract necessarily from its usefulness. As a guide for what to look for and as a predictor for what and how to manage large-scale organizational change, we have found the model invaluable. Like any other model, however, we must not allow it to determine exclusively what we diagnose or how we handle organization change. We cannot afford to allow our model to become ideology, as Moran (1986) has warned, and that our "way of seeing is a way of not seeing." (Morgan, 1986: 73)

A final note: It is interesting to point out that executives and managers more typically concern themselves with the left side of the model--mission and strategy, structure, task requirements and individual skills/abilities, and performance (i.e., when one wants to change an organization, these are the critical dimensions). Behavioral scientists, on the other hand, are more likely to be concerned with the right side and middle--leadership, culture, systems (especially rewards), management practices, climate, individual needs and values, motivation, and performance. We are criticized by the former group as only dealing with the "soft" stuff. We, of course, should be concerned with both, and with a more effective integration of purpose and practice.

HR Case Study: Realigning HR Practices at Egans Clothiers Grading Criteria (30 points)

*Introduction: (4 Points) Approximately 1 page in length

The introduction provides a brief background on the major topic addressed in the case (e.g., performance management, training, compensation, etc.) and why its important. This section should not focus on the case specifically, rather be a discussion of the central topic, in general. A brief discussion of an external article (from list in Appendix B of Text) and its relevance to the topic of the case should be included here to strengthen and augment this section (at least 4 5 sentences about how the article is relevant to the topic(s) of the case).

*Case Overview: (2 Points) Approximately 1 page in length

The case overview provides brief overview of the case and clearly and accurately identifies the problem.

*Case Analysis: (15 Points) Approximately 4 pages in length

1) Clearly and directly answers all questions posed at the end of the case.
2) Your responses to the case questions will be evaluated based on your thoughtful integration of the concepts discussed in the course.
3) Integrate external article(s) into your analysis to support your responses to the case questions.

*Lessons Learned (2 Points) Approximately 1 page in length

Summarize what you learned from completing this case by answering the following two questions. What did you learn from completing this case? How might you use this information in your current or future job?

Mechanics (6 Points)

Paper is well-organized, easy to follow, and sections of the paper are indicated by headings/sub-headings. Your major headings should be I. Introduction, II. Case Overview, III. Case Analysis, and IV. Lessons Learned. Note: Section III. Case Analysis, should have sub-headings related to each question. Has professional appearance; proper business tone, style, and length. Case is between 7-8 pages, double spaced, 12-point font, 1-inch margins and typed. Uses MLA or APA style to cite references.

You will need to research and find AT LEAST one academic and professional source that is relevant to your case and include a brief discussion of it in the Introduction section. In order to meet this requirement, you may be required to go to the actual library to research.

How to Get the Most out of Cases - Professor Advice

Case analysis allows students to apply what they have learned through lecture and in-class activities. Please see the MGMT 321 syllabus for specifics on how to write your case analysis paper.


1. Read the case the first time quickly, just to get a general overview of the key issues in the case.
2. Re-read the case, putting yourself into the managers role. What do you think the important issues are?
3. Write down the key problems or issues and go through the case one more time. There may be more problem areas than you initially thought. The cases are roughly categorized into management topics but management is, of course, very complex and the cases reflect this complexity.
4. Develop a set of recommendations based on your analysis of the case. How should the manager solve the problems? What evidence do you have that this is the right way to go? What other elements should be considered in the decision?

-----The Case for the Report----
Realigning HR practices at Egans Clothiers

At the end of the fiscal year 2000, revenues at Egans Clothiers, Inc. had increased 21 percent over 1999 and had increased at a compounded rate of 24 percent over the past five years. Thats the good news. The bad news is that costs have risen at an even more rapid rate, thereby shrinking the companys gross margins. As a consequence, Egans profitability (measured as return on sales and return on net assets) has actually fallen 14 percent over the past three years.
The retail industry in general has been enjoying growth due to a healthy economy, and this drop in profitability at Egans is particularly worrisome. In fact, according to Egans chief financial officer, Richard Coyle, if something isnt done immediately to control material and labor costs, as well as administrative expenses, the company may need to restructure its operations. In the short run, Coyle, company president Karen Egan, and vice president of HR Jim Rooney have pit an indefinite freeze on all hiring. Further, they are contemplating layoffs of nearly one-quarter of Egans sales staff and are weighing the benefits of cutting back on HR-related expenses such as training. Compared to others in the industry, their labor costs are very high.

Company Background
Gene Egan and Pat Pollock opened their first store in Baldwin New York, in 1958. The company grew rapidly during the 1980s and now operates a chain of thirty-four medium-sized stores located throughout Connecticut, New York Pennsylvania, and New Jersey. Since the beginning, Egans customers have been primarily middle- and upper-middle-class families purchasing sportswear, dress wear, and fashion accessories. The company has established a longstanding tradition of quality and customer service. In addition to its thirty-four stores, the company maintains two distribution centers and its administrative offices in Stamford, Connecticut. The total employment currently stands at approximately 2,400 people: 15 executives, 40 staff specialists, 40 store managers, 215 sales managers, 250 administrative personal, 1,600 sales people, and 240 distribution workers. Except for the employees at the distribution centers, the company is not presently unionized. However, it is no secret that Egans management has been trying very hard recently to keep current labor organizing activities to a minimum. Especially in these times of growth and change, management view unionism as a threat to the companys success. In this regard, the HR office had been called upon to conduct a program audit of various HR practices utilized at Egans. The purpose of this audit is to assess the impact of HR polices and practices on employee outcomes (e.g., performance, satisfaction, absenteeism, turnover). The corollary objective of this audit is to identify specific problem areas where policy adjustments may be necessary. The final report to the executive staff will include the HR departments evaluation of current problems and recommendations for implementing changes in HR practices.

Human Resources and Management History
Over the past five years, Egans has made several changes in order to implement the best HR practices possible. Partially, this as been to circumvent unionization efforts, but primarily it is indicative of Egans longstanding belief that success in retailing depends on the competencies and efforts of its employees.
The commitment to HR is demonstrated by the fact that in 1998 the company spent 1.3 million on an intranet-based human resources information system (HRIS). The HRIS has successfully automated most employment records (e.g., job titles, salary information, sales levels, attendance, demographics, etc.) and connects each of the retail stores, distribution centers, and executive offices. Also, Egans has maintained an ongoing training program or the past five years to help salespeople improve their retail selling skills (RSS) and customer service. The annual cost of this program has been roughly 750,000. To further ensure high ability levels in their workforce, the company sets selection standards selection standards substantially higher than their competitors. Whereas other retail companies typically hire inexperienced high school students, Egans generally requires some retailing experience before considering an applicant for employment. While this policy increases labor costs Egans management has been confident that the added expense is well justified over the long run. However, recently even the strongest proponents of HR have been wondering if it might be a good idea to cut back on training, given the companys current financial picture.
By fat the most problematic and volatile HR issues at Egans have been rearding promotions and salary increases. Because the company promotes from within, and distributes raises on a company-wide basis, comparisons generally have to be made across employees in different jobs and departments. To combat arguments of subjectivity and bias pertaining to these decisions, Egans links these rewards to objective measures of performance. Specifically, rather than utilizing subjective managerial evaluations of employee performance, ongoing accounts of sales results are maintained for each employee through use of the HRIS. On the basis of this information, each department manager assigns each employee to one of five categories:

Superior top 10 percent
Very good next 20 percent
Good middle 40 percent
Fair lower 20 percent
Poor lowest 10 percent

Administrative decisions are then made across departments utilizing these standardized distributions. Additionally, in order to provide constant feedback to each employee concerning his or her relative performance, data are updated and posted daily. It is hoped that this feedback is motivating to employees, and in this way there are no surprises when the time comes for semiannual performance appraisal interviews. It is interesting to note that since these changes have been made in the performance appraisal system, there has not been one formal complaints registered regarding salary or promotion decisions. However, sales managers themselves have mentioned occasionally hat they do not feel as comfortable now that they are required to assign employees to the fair and poor categories.

HR Outcomes
Despite the concerted efforts of Egans management to create a first-rate system of human resources management, there are several troubling issues facing the company. The HR practices are not having their desired effects. For example, there have been recent complaints that the employees have not been as patient or courteous with customers as they should be. This was best summarized by Paul Kelly, a store manager in White Plains, New York, who noted, My people are beating the clientele in order to make a sale the very opposite of what the RSS program trains them to do. This lapse in customer service is frustrating to management since the RSS training has proven effective in the past. Additionally, there seems to be a great deal of competition within- departments that is hurting a team effort. Although intergroup rivalries between- departments has always been viewed as normal and healthy, the lack of intragroup cohesiveness is seen as a problem.
Additionally, Egans has been plagued with increase in lost and damaged merchandise. Management attributes this to the face that storage rooms are disorganized and unkempt. This is in sharp contrast to the selling floors, which have remained fairly well orderly and uncluttered. Nethertheless, inventory costs have been increasing at an alarming rate.
Everyone notices that something is wrong. Bu the behavior patterns are perplexing. Absenteeism has decreased by 23 percent, but employee turnover has actually increased from 13 to 29 percent, thereby increasing labor costs overall. Unfortunately, many of those leaving the company (43 percent) are rated as very food to superior employees.
As executives in the company look at these trends, they are understandably concerned. The success of the company and its reputation for quality and service depend on solid investments in HR to ensure the best possible workforce. However, the expenses are eroding the companys profits, and worse, it looks now like the investments are not paying off.

Lynn Brewer Was Employed in

"Confessions of an Enron Executive" by Lynn Brewer

Please answer these questions from the point of view of not business related person (like me).

1. How have all of the topics covered in this book about Enron impacted you? Do you believe this experience will impact the way you act in the business world? If so or not, please explain. Do you believe this experience will help you make ethical decisions and influence others to do the same in the future? Describe what you have gained from this experience.

2.In your own words describe how performance reviews were done at Enron. Was Enrons performance appraisal system an effective and positive management toolto improve employee performance? What was the purpose of the system? How would you feel about getting a review at Enron under this system? How does this relate to Enrons true corporate philosophy? What is your opinion concerning the use of a performance appraisal system? Should companies use them, or not? Are they an effective management tool to improve performance or do they cause more issues than performance improvements?

3. Describe your position on the following question. Has Lynn Brewer done anything to change the world today? If you believe she has, describe what and how she has done that. If you do not believe she has, please describe why you feel that way.

You are to write a 1-page. Provide a written discussion of the article and how it applies to the economic model of behavior. Do Not Use Outsides Sources.

Why Incentive Plans Cannot Work

When reward systems fail, don't blame the program -- look at the premise behind it.

It is difficult to overstate the extent to which most managers and the people who advise them believe in the redemptive power of rewards. Certainly, the vast majority of U.S. corporations use some sort of program intended to motivate employees by tying compensation to one index of performance or another. But more striking is the rarely examined belief that people will do a better job if they have been promised some sort of incentive. This assumption and the practices associated with it are pervasive, but a growing collection of evidence supports an opposing view. According to numerous studies in laboratories, workplaces, classrooms, and other settings, rewards typically undermine the very processes they are intended to enhance. The findings suggest that the failure of any given incentive program is due less to a glitch in that program than to the inadequacy of the psychological assumptions that ground all such plans.
Temporary Compliance
Behaviorist theory, derived from work with laboratory animals, is indirectly responsible for such programs as piece-work pay for factory workers, stock options for top executives, special privileges accorded to Employees of the Month, and commissions for salespeople. Indeed, the livelihood of innumerable consultants has long been based on devising fresh formulas for computing bonuses to wave in front of employees. Money, vacations, banquets, plaques--the list of variations on a single, simple behaviorist model of motivation is limitless. And today even many people who are regarded as forward thinking--those who promote teamwork, participative management, continuous improvement, and the like--urge the use of rewards to institute and maintain these very reforms. What we use bribes to accomplish may have changed, but the reliance on bribes, on behaviorist doctrine, has not.
Moreover, the few articles that appear to criticize incentive plans are invariably limited to details of implementation. Only fine-tune the calculations and delivery of the incentive--or perhaps hire the author as a consultant--and the problem will be solved, we are told. As Herbert H. Meyer, professor emeritus in the psychology department at the College of Social and Behavioral Sciences at the University of South Florida, has written, "Anyone reading the literature on this subject published 20 years ago would find that the articles look almost identical to those published today." That assessment, which could have been written this morning, was actually offered in 1975. In nearly forty years, the thinking hasn't changed.
Do rewards work? The answer depends on what we mean by "work." Research suggests that, by and large, rewards succeed at securing one thing only: temporary compliance. When it comes to producing lasting change in attitudes and behavior, however, rewards, like punishment, are strikingly ineffective. Once the rewards run out, people revert to their old behaviors. Studies show that offering incentives for losing weight, quitting smoking, using seat belts, or (in the case of children) acting generously is not only less effective than other strategies but often proves worse than doing nothing at all. Incentives, a version of what psychologists call extrinsic motivators, do not alter the attitudes that underlie our behaviors. They do not create an enduring commitment to any value or action. Rather, incentives merely--and temporarily--change what we do.
As for productivity, at least two dozen studies over the last three decades have conclusively shown that people who expect to receive a reward for completing a task or for doing that task successfully simply do not perform as well as those who expect no reward at all. These studies examined rewards for children and adults, males and females, and included tasks ranging from memorizing facts to creative problem-solving to designing collages. In general, the more cognitive sophistication and open-ended thinking that was required, the worse people performed when working for a reward. Interestingly enough, the researchers themselves were often taken by surprise. They assumed that rewards would produce better work but discovered otherwise.
The question for managers is whether incentive plans can work when extrinsic motivators more generally do not. Unfortunately, as author G. Douglas Jenkins, Jr., has noted, most organizational studies to date--like the articles published-have tended "to focus on the effects of variations in incentive conditions, and not on whether performance-based pay per se raises performance levels."
A number of studies, however, have examined whether or not pay, especially at the executive level, is related to corporate profitability and other measures of organizational performance. Often they have found slight or even negative correlations between pay and performance. Typically, the absence of such a relationship is interpreted as evidence of links between compensation and something other than how well people do their jobs. But most of these data could support a different conclusion, one that reverses the causal arrow. Perhaps what these studies reveal is that higher pay does not produce better performance. In other words, the very idea of trying to reward quality may be a fool's errand.
Consider the findings of Jude T. Rich and John A. Larson, formerly of McKinsey & Company. In 1982, using interviews and proxy statements, they examined compensation programs at 90 major U.S. companies to determine whether return to shareholders was better for corporations that had incentive plans for top executives than it was for those companies that had no such plans. They were unable to find any difference.
Four years later, Jenkins tracked down 28 previously published studies that measured the impact of financial incentives on performance. (Some were conducted in the laboratory and some in the field.) His analysis, "Financial Incentives," published in 1986, revealed that 16, or 57%, of the studies found a positive effect on performance. However, all of the performance measures were quantitative in nature: a good job consisted of producing more of something or doing it faster. Only five of the studies looked at the quality of performance. And none of those five showed any benefits from incentives.
Another analysis took advantage of an unusual situation that affected a group of welders at a Midwestern manufacturing company. At the request of the union, an incentive system that had been in effect for some years was abruptly eliminated. Now, if a financial incentive supplies motivation, its absence should drive down production. And that is exactly what happened, at first. Fortunately, Harold F. Rothe, former personnel manager and corporate staff assistant at the Beloit Corporation, tracked production over a period of months, providing the sort of long-term data rarely collected in this field. After the initial slump, Rothe found that in the absence of incentives the welders' production quickly began to rise and eventually reached a level as high or higher than it had been before.
One of the largest reviews of how intervention programs affect worker productivity, a meta-analysis of some 330 comparisons from 98 studies, was conducted in the mid-1980s by Richard A. Guzzo, associate professor of psychology at the University of Maryland, College Park, and his colleagues at New York University. The raw numbers seemed to suggest a positive relationship between financial incentives and productivity, but because of the huge variations from one study to another, statistical tests indicated that there was no significant effect overall. What's more, financial incentives were virtually unrelated to the number of workers who were absent or who quit their jobs over a period of time. By contrast, training and goal-setting programs had a far greater impact on productivity tha did pay-for-performance plans.
Why Rewards Fail
Why do most executives continue to rely on incentive programs? Perhaps it's because few people take the time to examine the connection between incentive programs and problems with workplace productivity and morale. Rewards buy temporary compliance, so it looks like the problems are solved. It's harder to spot the harm they cause over the long term. Moreover, it does not occur to most of us to suspect rewards, given that our own teachers, parents, and managers probably used them. "Do this and you'll get that" is part of the fabric of American life. Finally, by clinging to the belief that motivational problems are due to the particular incentive system in effect at the moment, rather than to the psychological theory behind all incentives, we can remain optimistic that a relatively minor adjustment will repair the damage.
Over the long haul, however, the potential cost to any organization of trying to fine-tune reward-driven compensation systems may be considerable. The fundamental flaws of behaviorism itself doom the prospects of affecting long-term behavior change or performance improvement through the use of rewards. Consider the following six-point framework that examines the true costs of an incentive program.
1. "Pay is not a motivator." W. Edward Deming's declaration may seem surprising, even absurd. Of course, money buys the things people want and need. Moreover, the less people are paid, the more concerned they are likely to be about financial matters. Indeed, several studies over the last few decades have found that when people are asked to guess what matters to their coworkers--or, in the case of managers, to their subordinates--they assume money heads the list. But put the question directly--"What do you care about?"--and pay typically ranks only fifth or sixth.
Even if people were principally concerned with their salaries, this does not prove that money is motivating. There is no firm basis for the assumption that paying people more will encourage them to do better work or even, in the long run, more work. As Frederick Herzberg, Distinguished Professor of Management at the University of Utah's Graduate School of Management, has argued, just because too little money can irritate and demotivate does not mean that more and more money will bring about increased satisfaction, much less increased motivation. It is plausible to assume that if someone's take-home pay was cut in half, his or her morale would suffer enough to undermine performance. But it doesn't necessarily follow that doubling that person's pay would result in better work.
2. Rewards punish. Many managers understand that coercion and fear destroy motivation and create defiance, defensiveness, and rage. They realize that punitive management is a contradiction in terms. As Herzberg wrote in HBR some 25 years ago ("One More Time: How Do You Motivate Employees?" January-February 1968), a "KITA"-which, he coyly explains, stands for "kick in the pants"--may produce movement but never motivation.
What most executives fail to recognize is that Herzberg's observation is equally true of rewards. Punishment and rewards are two sides of the same coin. Rewards have a punitive effect because they, like outright punishment, are manipulative. "Do this and you'll get that" is not really very different from "Do this or here's what will happen to you." In the case of incentives, the reward itself may be highly desired; but by making that bonus contingent on certain behaviors, managers manipulate their subordinates, and that experience of being controlled is likely to assume a punitive quality over time.
Further, not receiving a reward one had expected to receive is also indistinguishable from being punished. Whether the incentive is withheld or withdrawn deliberately, or simply not received by someone who had hoped to get it, the effect is identical. And the more desirable the reward, the more demoralizing it is to miss out.
The new school, which exhorts us to catch people doing something right and reward them for it, is not very different from the old school, which advised us to catch people doing something wrong and threaten to punish them if they ever do it again. What is essentially taking place in both approaches is that a lot of people are getting caught. Managers are creating a workplace in which people feel controlled, not an environment conducive to exploration, learning, and progress.
3. Rewards rupture relationships. Relationships among employees are often casualties of the scramble for rewards. As leaders of the Total Quality Management movement have emphasized, incentive programs, and the performance appraisal systems that accompany them, reduce the possibilities for cooperation. Peter R. Scholtes, senior management consultant at Joiner Associates Inc., put it starkly, "Everyone is pressuring the system for individual gain. No one is improving the system for collective gain. The system will inevitably crash." Without teamwork, in other words, there can be no quality.
The surest way to destroy cooperation and, therefore, organizational excellence, is to force people to compete for rewards or recognition or to rank them against each other. For each person who wins, there are many others who carry with them the feeling of having lost. And the more these awards are publicized through the use of memos, newsletters, and awards banquets, the more detrimental their impact can be. Furthermore, when employees compete for a limited number of incentives, they will most likely begin to see each other as obstacles to their own success. But the same result can occur with any use of rewards; introducing competition just makes a bad thing worse.
Relationships between supervisors and subordinates can also collapse under the weight of incentives. Of course, the supervisor who punishes is about as welcome to employees as a glimpse of a police car in their rearview mirrors. But even the supervisor who rewards can produce some damaging reactions. For instance, employees may be tempted to conceal any problems they might be having and present themselves as infinitely competent to the manager in control of the money. Rather than ask for help--a prerequisite for optimal performance--they might opt instead for flattery, attempting to convince the manager that they have everything under control. Very few things threaten an organization as much as a hoard of incentive-driven individuals trying to curry favor with the incentive dispenser.
4. Rewards ignore reasons. In order to solve problems in the workplace, managers must understand what caused them. Are employees inadequately prepared for the demands of their jobs? Is long-term growth being sacrificed to maximize short-term return? Are workers unable to collaborate effectively? Is the organization so rigidly hierarchical that employees are intimidated about making recommendations and feel powerless and burned out? Each of these situations calls for a different response. But relying on incentives to boost productivity does nothing to address possible underlying problems and bring about meaningful change.
Moreover, managers often use incentive systems as a substitute for giving workers what they need to do a good job. Treating workers well-providing useful feedback, social support, and the room for self-determination--is the essence of good management. On the other hand, dangling a bonus in front of employees and waiting for the results requires much less effort. Indeed, some evidence suggests that productive managerial strategies are less likely to be used in organizations that lean on pay-for-performance plans. In his study of welders' performance, Rothe noted that supervisors tended to "demonstrate relatively less leadership" when incentives were in place. Likewise, author Carla O'Dell reports in People, Performance, and Pay that a survey of 1,600 organizations by the American Productivity Center discovered little in the way of active employee involvement in organizations that used small-group incentive plans. As Jone L. Pearce, associate professor at the Graduate School of Management, University of California at Irvine, wrote in "Why Merit Pay Doesn't Work: Implications from Organization Theory," pay for performance actually "impedes the ability of managers to manage."
5. Rewards discourage risk-taking. "People will do precisely what they are asked to do if the reward is significant," enthused Monroe J. Haegele, a proponent of pay-for-performance programs, in "The New Performance Measures." And here is the root of the problem. Whenever people are encouraged to think about what they will get for engaging in a task, they become less inclined to take risks or explore possibilities, to play hunches or to consider incidental stimuli. In a word, the number one casualty of rewards is creativity.
Excellence pulls in one direction; rewards pull in another. Tell people that their income will depend on their productivity or performance rating, and they will focus on the numbers. Sometimes they will manipulate the schedule for completing tasks or even engage in patently unethical and illegal behavior. As Thane S. Pittman, professor and chair of the psychology department at Gettysburg College, and his colleagues point out, when we are motivated by incentives, "features such as predictability and simplicity are desirable, since the primary focus associated with this orientation is to get through the task expediently in order to reach the desired goal." The late Cornell University professor, John Condry, was more succinct: rewards, he said, are the "enemies of exploration."
Consider the findings of organizational psychologist Edwin A. Locke. When Locke paid subjects on a piece-rate basis for their work, he noticed that they tended to choose easier tasks as the payment for success increased. A number of other studies have also found that people working for a reward generally try to minimize challenge. It isn't that human beings are naturally lazy or that it is unwise to give employees a voice in determining the standards to be used. Rather, people tend to lower their sights when they are encouraged to think about what they are going to get for their efforts. "Do this and you'll get that," in other words, focuses attention on the "that" instead of the "this." Emphasizing large bonuses is the last strategy we should use if we care about innovation. Do rewards motivate people? Absolutely. They motivate people to get rewards.
6. Rewards undermine interest. If our goal is excellence, no artificial incentive can ever match the power of intrinsic motivation. People who do exceptional work may be glad to be paid and even gladder to be well paid, but they do not work to collect a paycheck. They work because they love what they do.
Few will be shocked by the news that extrinsic motivators are a poor substitute for genuine interest in one's job. What is far more surprising is that rewards, like punishment, may actually undermine the intrinsic motivation that results in optimal performance. The more a manager stresses what an employee can earn for good work, the less interested that employee will be in the work itself.
The first studies to establish the effect of rewards on intrinsic motivation were conducted in the early 1970s by Edward Deci, professor and chairman of the psychology department at the University of Rochester. By now, scores of experiments across the country have replicated the finding. As Deci and his colleague Richard Ryan, senior vice president of investment and training manager at Robert W. Baird and Co., Inc., wrote in their 1985 book, Intrinsic Motivation and Self-Determination in Human Behavior, "the research has consistently shown that any contingent payment system tends to undermine intrinsic motivation." The basic effect is the same for a variety of rewards and tasks, although extrinsic motivators are particularly destructive when tied to interesting or complicated tasks.
Deci and Ryan argue that receiving a reward for a particular behavior sends a certain message about what we have done and controls, or attempts to control, our future behavior. The more we experience being controlled, the more we will tend to lose interest in what we are doing. If we go to work thinking about the possibility of getting a bonus, we come to feel that our work is not self-directed. Rather, it is the reward that drives our behavior.
Other theorists favor a more simple explanation for the negative effect rewards have on intrinsic motivation: anything presented as a prerequisite for something else-that is, as a means toward another end--comes to be seen as less desirable. The recipient of the reward assumes, "If they have to bribe me to do it, it must be something I wouldn't want to do." In fact, a series of studies, published in 1992 by psychology professor Jonathan L. Freedman and his colleagues at the University of Toronto, confirmed that the larger the incentive we are offered, the more negatively we will view the activity for which the bonus was received. (The activities themselves don't seem to matter; in this study, they ranged from participating in a medical experiment to eating unfamiliar food.) Whatever the reason for the effect, however, any incentive or pay-for-performance system tends to make people less enthusiastic about their work and therefore less likely to approach it with a commitment to excellence.
Dangerous Assumptions
Outside of psychology departments, few people distinguish between intrinsic and extrinsic motivation. Those who do assume that the two concepts can simply be added together for best effect. Motivation comes in two flavors, the logic goes, and both together must be better than either alone. But studies show that the real world works differently.
Some managers insist that the only problem with incentive programs is that they don't reward the right things. But these managers fail to understand the psychological factors involved and, consequently, the risks of sticking with the status quo.
Contrary to conventional wisdom, the use of rewards is not a response to the extrinsic orientation exhibited by many workers. Rather, incentives help create this focus on financial considerations. When an organization uses a Skinnerian management or compensation system, people are likely to become less interested in their work, requiring extrinsic incentives before expending effort. Then supervisors shake their heads and say, "You see? If you don't offer them a reward, they won't do anything." It is a classic self-fulfilling prophecy. Swarthmore College psychology professor Barry Schwartz has conceded that behavior theory may seem to provide us with a useful way of describing what goes on in U.S. workplaces. However, "It does this not because work is a natural exemplification of behavior theory principles but because behavior theory principles ... had a significant hand in transforming work into an exemplification of behavior theory principles."
Managers who insist that the job won't get done right without rewards have failed to offer a convincing argument for behavioral manipulation. Promising a reward to someone who appears unmotivated is a bit like offering salt water to someone who is thirsty. Bribes in the workplace simply can't work.

I would like a 3 page report on something that upsets you at a job. It can be fictious if you want, or something that has to do with a regular job.

This assignment has three parts.

1. What is something at work that really cheeses you off--something you would really like to change? Once youve identified it, write a persuasive memo that makes your case and uses guidelines from Cialdini, Conger, and/or Bowman. It can be about any topic that might come up at work that calls for you to persuade someone or some people. Examples include:
why you should get a raise,
why the new performance appraisal system should be junked,
why your colleagues should do more active listening,
why the company should ditch its 1970s logo

2. In the next part of the paper, explain which guidelines you used in the memo.

3. Finally, explain why your email was ethical, using ideas from Cialdini and Mazur. The Mazur reading is in the Background Reading section for this module. This paper should be about three pages.

I have included what they want to see in the report and some readings that they want us read and apply to the memos. Please use in text referencing for sources.

Memo: Business Administration 3033: Business Communication
This gives guidelines for writing memos.

Harnessing the science of persuasion
This explains how you can use the findings of research from social psychology to be more persuasive.
Cialdini, R. (Oct. 1, 2001). Harnessing the science of persuasion. Harvard Business Review, 8 pp. EBSCO

The necessary art of persuasion
This article presents a different, but still powerful approach to persuasion.
Conger, J. (1998) The necessary art of persuasion. Harvard Business Review. EBSCO

Writing Persuasive Messages
This is a typical business communication textbook chapter on writing persuasive messages from one of the most popular business communication textbooks.
Bowman, J. P. Writing Persuasive Messages

Reading about persuasion through lying.
This article by Tim Mazur in Issues in Ethics is a great introduction to the morality of lying.

This is a team assignment and I believe we are about 60% to 70% done with the assignment but we have had two people on our team not contribute. Now we are in a fix, because our paper and PPT is due on Monday at noon. I would like to send you what we have thus far and see if you can help us with a little more research to fill in the case study steps that our team mates did not complete. Also, I noticed alot of redundancy as I edited the document today and I have been working to eliminate. I am also concerned that the some of the team members have placed the correct content under the correct steps. Good news is that we have been given an example of a case study that we are to follow "professor loverde's case study" (which I am attaching) and so I would like to attach this as well as a template reference that we need to align with.

Also, the document that we have put together thus far "tylenol cyanide case" has alot of color highlights, and this is really just my way of communicating with my other team mates. I used grey in the text when I felt that the content in grey actually matched the steps or appeared to align in some way. Problem I see is that my team mates are not really working through the case study front to back and they are duplicating content every time they submit something - - and not necessarily answering the steps properly. Could you please look at what we have, and help me to make sure the content under each step is correct, and the steps where content is missing / including the Summary or Conclusion is filled in? (also, when we are done, the school will run this through plagerism software so please cite properly) - I left a few great extra references - that we can go to for more content if we need to.

When I get this back, I still have to put a PPT together - so I am in a little rush to get this back. I will make one slide for every PPT - so I hope the case study will easily allow me to see this.

Is there a way to get this by Sunday evening? - time isn't important - it can be late, but just Sunday so that I have time to work on the ppt.

Johnson and Johnson Tylenol Case Analysis

Team C
PHL 323
March 1, 2010



Taking responsibility and immediate action in the face of a huge crisis is a requirement for any U.S. corporation if they are to survive and maintain their market position and reputation. These types of organizations are expected to be socially responsible to their employees and the public not only if they are directly involved in a crisis involving their products or services, but also if there is an indirect association. In 1982 Johnson and Johnson was faced with this challenge. They were indirectly involved in a catastrophe which killed seven people because their leading pain killer Tylenol was tampered with and unassuming consumers became the victim of such an atrocity. The way in which Johnson and Jonson dealt with the situation is the basis or our case study. In fact, their response was remarkable and commendable. The outcome of this catastrophe created a new standard in crisis management. The company was applauded for how they responded while prioritizing the consumer over their monetary losses. As a result, Johnson and Johnson recovered and within months after the crisis their markets share exceeded all expectations.
This paper will discuss the entire case; dissect the elements of the case, symptoms, goals of the organization, management theory, diagnosis the barriers Johnson and Johnson, the media and the public viewed during the crisis, solutions proposed, action plans they used to overcome barriers, consequences to the plan, action plan to the larger context, external forces, implications for two directions of corporate integrity, and it will interpret the original case elements in light of the larger horizons of the era. Johnson and Johnson was seriously affected by the chain of events caused by this crisis, but how they handle this challenge, and how they moved through the process is the very reason they not only survived but are thriving today.

Step 1; Elements of the Case
Company Facts
Johnson and Johnson firm incorporated in 1887. The firm provided sealed surgical dressing which was germ-free, wrapped and ready to be used. In the late 1880s this was considered modern medicine and for antiseptic treatment of wounds. Johnson and Johnson had subsidiaries in more than fifty countries worldwide. McNeil Consumer Products is a subsidiary of Johnson & Johnson developed the painkiller called Tylenol. As an oath to the public, Johnson and Johnson created a Credo statement, written in Robert Johnson in 1943, conveying and prioritizing their responsibility to their consumers. This statement is posted on their website today as Our Credo Value and demonstrates the emphasis on being socially responsible to everyone who uses their products
Actual Crisis
On September 30, 1982 CEO, James Burke of McNeil was notified that seven people died from the Chicago area from cyanide laced Tylenol after ingesting the capsules. People died within minutes of taking the capsules. The perpetrator placed deadly cyanide into the Tylenol bottles. The nation was warned that there might be a connection between the deaths and Tylenol. Suddenly Johnson and Johnson was faced with explaining to the world how a well know product was suddenly killing people. In response to the information at hand, the Police in Chicago proactively led the charge to notify their communities. Three national television networks reported details on the evening news and they focused on 24 hour coverage, which was new at the time. The next day the Food and Drug Administration advised consumers to avoid the Tylenol capsules, "until the association with deaths had been be clarified" (Tifft, 18). Johnson and Johnson issued a public relations response immediately naming their number one priority, to protect the consumers using their products.

Step 2; Symptoms of the Problem ??" (VIC)
The crisis created a nationwide panic and because of the new twenty four hour media the news reached the public quickly. One hospital in Chicago received 700 calls in one day. Johnson and Johnson received 1411 calls over 10 days. Across the country people were admitted on suspicion of cyanide poisoning in to hospitals for observation (Tifft, 18). Johnson and Johnson worked with the media to distribute information about the poisonings to the public as quickly as possible. When the news spread copycat criminals began to tamper with the products and add to the crisis. FDA confirmed more tampering had taken place, but this did not actually reach the public. The total number of actual tampering was 36 (Church, 27).The Food and Drug Administration counted 270 incidences of possible product tampering (Kaplan, 1998).
Additional symptoms to the problem were that Tylenols market share plummeted after the crisis. Since Tylenols name was tied to the tampered goods, they were held indirectly responsible for the deaths of seven people, and possibly more as view by the public. J & J needed to figure out how to deal with the crisis, protect the public and lastly not destroy the reputation of their products or their company. The decision was made by the company to first take responsibility and action to address the patients affected. Next, the protection of the potential consumers at risk recognizing that not everyone may have heard the news once this crisis was made public. With the onslaught of death, and potentially more death to result, the public and experts felt that Tylenol could not recover from horrible atrocity. The public also felt that the Tylenol product wasnt safe anymore ??" market share dropped from double digits to single digits within weeks (Mitchell, 1989).

Step 3; Identification of Goals ??" (Vic)
In 1982, Tylenol controlled 37% of the pain killer market, approx $1.2M and became the leading painkiller outselling Anacin, Bayer, Bufferin, and Excedrin. Seventeen to eighteen percent net earnigs of Johnson and Johnson were from Tylenol sales. Profits placed Johnson and Johnson in the top half of the Fortune 500 (Berg, 1998). The company had been doing well for years and was on track to grow market share by at least 15% over the next year. Tylenol was to the product that would lead this company to further success. That is until the Tylenol laced cyanide crisis came to be. This calamity changed the strategic plan, management goals, parent to subsidiary goal across the organization ??" within a 24 hour period. Instantly, an immediate crisis mode was assumed and a reassessment and reprioritization of their goals and immediate actions required jolted every executive, manager and employee in the organization.
Immediate Goals once Crisis was Revealed
Reacting to the news, when Johnson and Johnson was faced with the initial situation; it had to make some tough decisions that would severely impact the future of the company. Rather than think in financial terms only, CEO James Burke immediately turned to the company's Credo. Written by Robert Johnson, back in 1943, the document defined the focus of the company as its customers. With this as its inspiration, Tylenol used the media to promptly begin alerting people of the potential dangers of the product.
James Burke, CEO developed a strategy team of seven key members. Prioritizing goals to protect consumers first, save the product next and company reputation would follow. They realized that they needed to be socially responsible, alerting the nation through the media and work closely with the Chicago Police, FBI and the FDA. Strategy plans were to prevent more deaths, additionally this kind of tampering in the future. First they needed to remove all Tylenol products from Chicago shelves and immediate surrounding areas as quickly as possible. And although there was a slim chance that there was more contamination in other areas of the country, they didnt want to take the chance. Therefore, they recalled all Tylenol products from every shelf across the U.S. (Atkinson, 2) (Broom, Center, Cutlip, 381). Working with the FDA they dispatched scientists to determine the source of the tampering. They also used 1800 ??" hotlines to disseminate information about the situation.
The next set of goals was to re-release a new product that would restore consumer confidence. This was a critical step and only if this happened would the public view the product as safe.
Step 4; Management Theory ??" LANCE)
When Johnson and Johnson were faced with the Tylenol poising scandal they needed to find a way to protect the public and uphold their name. Negative media would only hurt their companys reputation; Johnson and Johnson adopted the Contingency Management Theory. The Contingency theory is a behavioral theory that claims there is no best way to organize a cooperation, to lead a company, or make decisions (12 Manage, . 1, 2010). It also states, When managers make a decision, they must take into account all aspects of the current situation and act on those aspects that are key to the situation at hand (McNamara, . 2, 2010). Johnson and Johnson decided on a two-phase plan, which consisted of customer safety first before profits and themselves (Kaplan, 1998). This was a strategy to win back public trust. Johnson and Johnson protected the public by ordering a massive nation-wide recall of Tylenol and stopped production of Tylenol capsules. This recall accounted for about 31 million bottles or about 100 million dollars in lost revenue (Effective Crisis Management, n.d.). They also were proactive about warning the nation about their product by using the media. They worked with Chicago police, Federal Bureau of Investigation, and Food and Drug Administration to help catch the culprit who tampered with their product (Kaplan, 1998) {wasnt this already stated? lets decide if it goes here or there?).
Primary Essentials
Assistant Director, Robert Andrews, who is in charge of public relations receives and reacts to the first days of the crisis. Robert Andrews accepts a phone call from a Chicago new reporter. A medical examiner had given a press conference because people were dying from poisoned Tylenol. The news reporter wanted the comments and position taken by Johnson and Johnson, specifically surrounding their plan to remedy this crisis. Robert Andrews was hearing this information for the first time and did not know the particulars to the sudden death of customers by taking the Tylenol product. {so what did he say publically? Was it a press conference?}
Portion # 5 Diagnosis and Barriers (Lance)
Two off duty firemen originally discovered the Tylenol poisonings while at home listening to their police radios (Kaplan, 1998). The Tylenol capsules were found to have 10,000 times the appropriate dose of cyanide for killing a person (Kaplan, 1998). During this time there were no tamper resistant precautions on over the counter medications. All bottles of Tylenol were from four different lots of production, two different Tylenol manufactures, and the poisonings only happened in the Chicago area. (Kaplan, 1998). McNeil Consumer Products confirmed that tampering did not take place at their plants. A spokesperson for McNeil confirmed their level of strict quality control. Authorities concluded that any tampering must have occurred once the Tylenol had reached Illinois (Beck, 33). Process was as follows: Bottles reached department stores and were placed on the shelves. Suspect took bottles off of the shelf, placed Cyanide in the bottles and then they were placed back on the shelves at five different stores in Chicago (Mitchell, 1989). Quickly they discovered that the capsules came from four different plants and lots. They were then taken from different pharmacies and believed to be distributed within one week, to one month. The problem remained that there could still be more contaminated Tylenol on shelves or in consumers medicine cabinets, there was simply no way to clarify this exposure.
The barriers that Johnson and Johnson faced were extensive. They had to figure out how to protect the public while upholding their reputation of Tylenol as a safe effective pain reliever. Time (to reach the public?) was the main barrier in protecting the public. This would prevent more people from ingesting the tampered Tylenol and also put a stop to the copycat criminals (what would?). The second large barrier was to uphold Tylenols reputation. In 1982 Tylenol controlled the largest market share for over the counter pain medication (Effective Crisis Management, n.d.), although, it was clear that both the media and their competitors did not believe they could hold on to this market position for long. Advertising geniuses told the NY Times "There may be an advertising person who thinks he can solve this and if they find him, I want to hire him, because then I want him to turn our water cooler into a wine cooler" (Knight, 2). Never the less, Johnson and Johnson moved forward and did not want to be viewed as disregarding public safety like other companies in similar crisis mode Perrier (Broom, Center Cutlip, 59). They realized that they would focus on regaining market share AFTER patient safety issues were addressed ??" and only if they were successful here would they be able to improve public relations and restore consumer confidence in their products.
Portion #6 Diagnosis and Solutions (Lance)
The solutions of the two major problems that Johnson and Johnson faced were massive. With 31 million bottles sold, Johnson and Johnson had to spread the word quickly on the nation- wide recall. They had Chicago police on loud speakers driving through neighborhoods warning citizens of the poisonings and the connection with Tylenol (Kaplan, 1998) . Media was contacted to help distribute the information about the tampered Tylenol recall. They worked with Chicago police, Federal Bureau of Investigation, and Food and Drug Administration to offer information and to be in direct involvement with catching the crimial (Kaplan, 1998). Johnson and Johnson offered a $100,000 reward for the capture of the killer (Kaplan, 1998).
STOP HERE Johnson and Johnson offered to exchange all Tylenol capsules for Tylenol tabs that were already purchased (Kaplan, 1998). This would have the public still using their brand as the pain reliever of choice. Johnson and Johnson improved the safety of their product by introducing the first triple seal tamper proof packaging (Kaplan, 1998). This was a major help in restoring the publics confidence that Johnson and Johnson was trying to fix this unfortunate problem. They also decreased the price by 25% and offered another $2.50 coupon for those who purchased Tylenol. Johnson and Johnson also sent 2250 representatives to talk with the medical community to regain their trust and support (Kaplan, 1998). This helped regain the trust of the medical community. The medical community would help by prescribing the drug to their patients which would help restore public confidence about Tylenol.
Other alternatives, which Johnson and Johnson could have leveraged publically through the media, could have been to have the President of the company provide a sincere apology. Also explain the facts about the incident and what the company was presently doing to fix the problem. This could have helped the public to regain the trust in Johnson and Johnson.
They offered a $100,000 reward for the capture of the killer (Kaplan, 1998). Finally they offered to exchange for all Tylenol capsules for Tylenol tabs that were already purchased (Kaplan, 1998). They introduced the first triple seal tamper proof packaging that was up to the Food and Drug new regulations (Kaplan, 1998). Along with this they discontinued the capsule (bead) form and developed a solid tablet tab. Reduced the price for Tylenol and provided coupons for $2.50 off any bottle of Tylenol (Kaplan, 1998). Finally 2250 people were sent from Johnson and Johnson to talk with the medical community to regain their trust and support (Kaplan, 1998). Their main goal was now was to restore the publics trust and confidence in their product - although they realized that this could only be accomplished if the public viewed the product as safe.

Step 7: Action plans to overcome barriers

A. Over the past decade, consumer groups, health care providers and others have shown an increasing interest in supplying consumers with more and better information about medicines. The hope is that consumers, armed with greater knowledge about the medicines taken will empower consumers to make educated decisions about their health care.
B. This action plans seeks to improve the quality and availability of information that will be provided to consumers. The rationale for the plan is providing consumers with useful information during a crisis which shall reduce the risk of panic, distrust, and reduce injury, and improve health outcomes. Action plan tools are:
Dealing with negative media
Open Communications
Public Safety
Establish a hot line
Establish a new triple safety seal capsule
Implement a tamper resistant product including packaging
Rectification Program to consumers
Encourage activities to increase consumer understanding and awareness
Promote consistency with federal regulations
Establish criteria for the development and distribution of product
Establish an emergency plan to recall tampered and contaminated product
Develop a mechanism for the workplace and employees
C. The Tylenol case is an example of a company that overcame many negative barriers. Developed crisis communications during a public out cry. Johnson and Johnson responded to the Tylenol poisonings by disseminating risk information which included enough detail for the consumer to understand. Outlined the hazards and pre-cautions. Public information allowed consumers to distinguish between warnings about improper use. Warned about life-threatening symptoms, and explained specific directions, and cautions to seek medical attention immediately. Information is important to inform, and warn consumers to protect them from harm.
D. Johnson and Johnson designed a remediation and rectification program that would win forgiveness from the public. The forgiveness and sympathy program offered compensation to help the victims of the crisis, and their families. Counseling and financial assistance programs were available. The programs lessened the negative publicity, and targeted advertising to gain the trust of consumers to use the Tylenol product again. This was a positive action.
E. Johnson and Johnson developed a program which confronted and addressed the issue of terrorism. The strategies and approaches that are implemented involved:
Re-structured the production process.
Re-designed the packaging of the product by initiating the first every new tamper resistant packaging.
Training and education programs on hostage taking, sabotage, and workplace violence.
Organizational policies that mandate the prevention, and recurrence of tampering in the future.
Implemented new random inspections procedures prior to product shipment to retailers.
Re-defined the mission statement
Re-defined the goals statement
Restructured and added a new department called Public Affairs.
A. The Public Affairs department established a positive relationship with the new media.
F. Johnson and Johnson realized that the costs to assume the responsibility of corporate obligation would be expensive in the beginning but, in the end it would win back the trust of the consumer. Johnson and Johnson knew that lawsuits for loss of life, and negative press coverage would damage the reputation of the company. This will cause long term effects. Johnson and Johnson developed a nation wide education process to give necessary tools to consumers. The first education process is to raise the awareness of consumers about the importance of the new tamper resistant packaging. Information about signs of a broken seal, opened package, and opened containers. The second education process involved the 1-800 hot lines for consumers to call. The third education process established a 1-800 line for news organizations to receive pre-taped messages with updated statements about the crisis with accurate and correct information on national television.

Step 8: Consider probable consequences to the action plan
Johnson and Johnson did not presume a crisis would hit the organization. This is shown in how the situation was handled the first 24 hours. Johnson and Johnson was in denial, and did not phantom that people died from taking the Tylenol product. The organization realized the need for an emergency action plan prior to a crisis. Johnson and Johnson established standards the incorporated responsibility to the consumers, stakeholders, and families. Johnson and Johnson adopted the attribution theory. This theory states that people make judgments based upon control, internal, and external.
As a result of the Tylenol crisis, Johnson and Johnson realized that public and private initiatives and advances must be made. Useful information to consumers. Written information shall be specific. Efforts to increase the cultural competency of oral and written communications shall reach underserved populations.
Johnson and Johnson are committed to experiencing open communications will all the news media, consumers, and health care providers. Johnson and Johnson shall work with all media outlets to help maintain the organizations reputation, trust, and make good on the mission and goal statement. Johnson and Johnson will honor all offers for free replacements of caplets in the new triple resistant package. A monitoring system shall be developed in quality control for a period of safety surveillance, drug distributions, and inventory management, lot number labeling for safety assurance. Johnson and Johnson implemented guidelines on the bar-coding system for drugs to prevent mix ups, and secure product traceability.
Johnson and Johnson have incorporated a plan for dug distributions, and corrections of inappropriate trade practices such as pending settlements, global pricing, which could undermine the trust.
Drugs supplied by the Johnson and Johnson company have a major impact on the life, and health of consumers globally. To maintain corporate responsibility Johnson and Johnson have a high level of ethics, reliability, and transparency. Johnson and Johnson have the responsibility for greater political and corporate behavior, an open business structure, compliance with the code of practices.
Johnson and Johnson realized this action plan is a working document, and must be updated regularly. This can be updated by role playing, exercises, and seminars. Johnson and Johnson realized that first impressions count, and almost impossible to change, the company needs to show that safety to the consumer is the number one goal and mission. Positive steps are taken to ensure the future of the corporation.
The only negative consequence that might affect Johnson and Johnson does not possess an action plan for the new drug industry visions. The new drug industry vision is to ensure the safe supply of drugs, impose duties on production and marketers. (Berge, 1998)
Johnson and Johnson pharmaceutical company is primarily responsible for supplying the medical frontline with the necessary information on drugs through package insert warnings.
Step 9: Action plan to other companies
Johnson and Johnson took positive action to stop competitors from expounding on the negative media by doing the right thing. Johnson and Johnson care about employees, shareholders, customer safety, and the quality of the Tylenol product. Johnson and Johnson have a vision or producing products with indications, and effects beyond those required for conventional non-prescription drugs, and respond to public trends. Johnson and Johnson are developing a plan that will concentrate on efforts to maintain the trust of the public. Johnson and Johnson is the leading company in public-focused policies that promote global competitiveness of the industry.
Step 10; Consider the external factors - TEREK

Step 11; Assess the implications for the two directions of corporate integrity - TEREK

The training and changes outlined above should have a positive impact within the company for the overall synergy of the employees while at the same time improving reputation and value for internal and external stakeholders alike. It is highly probable that the employees that are guilty of discrimination in this case may find it difficult to change the way they interact with their fellow employees. Even though this will be a difficult transition period for them the end result should prove to be a better work environment for everyone concerned. If these changes do not take place the company will certainly be involved in additional lawsuits which have already proven to be much more costly than implementing these changes across the company. XXalso has to consider its reputation in this day and age when corporate image is a very real and tangible asset. Consumers and stockholders alike have become very fickle about which companies they back or buy from based on public opinion of how a company fits in to our overall society today.

Step 12; Interpret the original case elements in light of the larger horizons of the era - TEREK

Language here is simply an example of how this section is presented ??" what is written here has nothing to do with our case study.

The elements of this case are somewhat surprising considering that it happened in the not too distant past. American society has condemned ethnic and sexual discrimination for decades even though there are still pockets of resistance to these shifts in thinking throughout the country. With as much cultural diversity as there is at a global company like XXit seems almost impossible that this kind of treatment was prevalent at the corporate level for so long. In this case it is assumed that the company must act within the guidelines set by the society in which it resides. The outcome could be very different if we moved the company headquarters to a Middle Eastern country where traditions and ethical standards are very different than they are in the United States. If this company was in a country where women are considered inferior to men and people with different religious ideas would be ostracized our action plans would not even be considered. In fact there probably would not even be any cause for concern at all. The practices that brought about the lawsuits would have been considered both acceptable and expected.


I am adding this in because we can pull these concepts into our conclusion (Vic)
The features that made Johnson & Johnson's handling of the crisis a success included the following:
They acted quickly, with complete openness about what had happened, and immediately sought to remove any source of danger based on the worst case scenario - not waiting for evidence to see whether the contamination might be more widespread
Having acted quickly, they then sought to ensure that measures were taken which would prevent as far as possible a recurrence of the problem
They showed themselves to be prepared to bear the short term cost in the name of consumer safety. That more than anything else established a basis for trust with their customers. (keep reference here for now ??" vics note)

References (not in order or edited yet ??" still needs to be done and double checked with content)
12 manage. (2010). Contingency Theory. Retrieved February 22, 2010, from
Effective Crisis Management. (n.d.). The Tylenol Crisis, 1982. Retrieved February 22, 2010, from

Kaplan, T. (1998). The Tylenol Crisis: How Effective Public Relations Saved Johnson & Johnson. Retrieved February 22, 2010, from
Kaplan, T. (1998). The Tylenol Crisis: How Effective Public Relations Saved Johnson & Johnson. Retrieved February 22, 2010, from

McNamara, C. (2010). Brief Overview of Contemporary Theories in Management. Retrieved February 22, 2010, from

Berge, D (1990) Department of Defense Crisis Communication Strategies
Retrieved from February 25, 2010
Broom,G (1982) The Tylenol Scare, Newsweek October 11 Retrieved from
February 25, 2010-02-25
Beck, Melinda, Mary Hagar, Ron LaBreque, Sylvester Monroe, Linda Prout. "The Tylenol Scare." Newsweek. October 11, 1982.

Tifft, Susan. "Poison Madness in the Midwest." Time. October 11, 1982.

Church, George J. "Copycats are on the Prowl." Time. November 8, 1982.

Knight, Jerry. "Tylenol's Maker Shows How to Respond to Crisis." The Washington Post. October 11, 1982.

Broom, Glen M., Allen H. Center, Scott M. Cutlip. Effective Public Relations, Seventh Edition. Prentice-Hall Inc. 1994.
Mitchell, Mark L., Economic Association International 1989: The impact of external parties on brand name capital: the 1982 Tylenol poisonings and subsequent cases.

(Our Credo Value, (J & J web site) Reference

References below here
may be good reference to look into in order to complete this paper ??" although they have not been cited in the paper thus far.

12. "Tylenol Murders."
Beck, Melinda and Agrest, Susan (February 24, 1986). Again, a Tylenol Killer. Newsweek. National Affaires, page 25. United States Edition.
Beck, Melinda and Foote, Donna (November 8, 1982). The Tylenol Letter. Newsweek. National Affaires, pag 32. United States Edition.
Beck, Melinda; Monroe, Sylvester; Buckley, Jerry (October 25, 1982). Tylenol: Many Leads, No Arrests. Newsweek. National Affaires, page 30. United States edition.
Beck, Melinda; Monroe, Sylvester; Prout, Linda; Hager, Mary; LaBreque, Ron (October 11, 1982). The Tylenol Scare. Newsweek. National Affaires, page 32. United States edition. (July 25, 2002). Bitter Pill: A Wife on Trial.
Viacom Internet Services, Inc.
Cooke, Jeremy R. (October 18, 2002). PSU Alumnus Recalls 1982 Tylenol Murders.Collegian .
Dietz, Park (February 14, 2000). Product Tampering: The Proliferation of Product Tampering.
Douglas, John and Olshaker, M. (1997). Journey into Darkness. Mass Market Paperback.
Fink, Steven (2002). Crisis Management: Planning for the Inevitable. Published by iUniverse, Inc. Lincoln, NE. U.S.A.
Hobbs, Dawn. Ask John Douglas, who wrote the book on how to profile killers.
Kaplan, Tamara (1998). The Tylenol Crisis: How Effective Public Relations Saved Johnson and Johnson
Kowalski, Wally. The Tylenol Murders.
Manning, Jason (2000). The Tylenol Murders.
Mikkelson, David P. and Barbara (January 15, 1999). Horrors: Tylenol Murders.
Newsweek (December 27, 1982). A Librarian Ends A Tylenol Manhunt. National Affaires, page 19. United States Edition.
Tifft, Susan (October 11, 1982). Poison Madness in the Midwest. Time.
Time Magazine (December 21, 1987). The Widow is the Suspect.

J & J received positive press for how they handled the crisis
o Was viewed as responsible and swift
Public relations must support new charter, responsible to the people that use the product

Here is the teachers example of a case study format we are supposed to follow:
Sample of W5 paper
Posted: Tue 02/09/2010 10:57 AM , by: Lorin Loverde ( [email protected] ) Previous | Next

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Loverde Case Analysis ??"
PHL 323
University of Phoenix ??" Lorin Loverde
May 18, 2009


Diversity in the workplace should be commonplace in todays world. But, there are still companies that have outdated ideas when dealing with diversity in todays culture. In 1994 several lawsuits brought attention to the world that XXwas a company with misplaced ideas and ethical standards. Using the Loverde Case Model, this paper breaks down what the elements of this case are, some of the symptoms that caused the problems, goals of the company, management theory used, diagnosis and barriers the company faced, new solutions the company must take, action plans that must be used to overcome barriers, discuses the consequences to the action plan, compares the action plan in regard to the companys larger context, considers external factors, assess the implications for the two directions of corporate integrity, and interprets the original case elements in light of the larger horizons of the era. XXunfortunately failed to grow with society in regards to equality within the workplace.

Step 1; Elements of the Case ??"

There are several elements of this case, some of which are sub-elements. In other words, some elements are parts of a larger, more general element. These sub-elements must be listed as separate entities from the larger element because they have dual roles, one role as themselves and the other role as part of the larger element. The following is the list of elements in the case.

XXCorporation (now Chevron XXCorporation as of 2001)
XXs corporate image
XXs corporate culture (before, during, and after the legal case)
The Executives and the management team of XX
The specific executives who made the racist/sexist remarks
Minority employees of XX
All employees of XX
Minority Americans
The general American public
Stockholders and other stakeholders in and of XX(both American and international)
Consumers and the business community
XXs Human Resources Department
Racial and gender discrimination laws and American societal norms
XXs company policies (specifically their anti-discriminatory policies)
Racism/sexism in America
Racism/sexism in workplace environments (especially where it involves promotions from subordinate to management level positions or pay scales and raises)
XXs public and internal (to the company) response to the allegations and the court case
Corporate integrity

Step 2; Symptoms of the Problem ??"

XXs problems caused many symptoms. The company and its employees mostly experienced these symptoms. The symptoms themselves were also problems. Thus, XXs problems resulted in even more problems that the following symptoms caused.

Racist and sexist management
Dictatorial management
Cultural and gender gaps
Lack of ethical conduct (on the part of the company, and the racist/sexist executives)
Loss of employee pride in company
Loss of employee morale in company
Loss of good employee relations and interactions between subordinates and management
Ignorance of diversity
Loss of the value that diversity gives to a company
Loss of opportunity for minorities (higher positions in company)
Loss of money for minorities (higher pay)
Loss of respect (for each other as co-workers and for management by subordinates)
Loss of control over employees (the executives were clearly out of control)
Loss of good corporate image
Loss of company revenue (from customer boycotts and stock price drops)
Loss of revenue from businesses buying from and selling to XX
Loss of prospective employees who could add value to the company
Loss of company and personal money (payment of fines and legal fees)

Step 3; Identification of Goals ??"

Initially, XXs goals were those of most every other company ??" the general, company-wide goal was to maximize profitability; the individual, personal goals of each employee were to make good money and to move up in the company. These goals were easily attainable had the executives maintained proper personal ethics and had the company kept up with its human resources responsibilities. Once XXs problems became public, their goals not only changed, but also increased. The existing goals now had challenges to them and new goals were added. Listed below are all of the goals, in general chronological order, from the initial goals through to the revised and additional goals. Keep revenue incoming and increasing
Keep competitive in the market
Cultivate and maintain a good corporate image
Hire, retain, and maintain productive employees
Subordinate respect of superiors
Control of employees
Maintain the good ol boy executive club
Corporate image damage containment and repair
Regain market share and trust from stakeholders
Eliminate racist and sexist management attitudes
Improve diversity awareness and appreciation
Revise and improve corporate policies
Revise and improve management styles
Control of executives
Executives earning respect
Executives respecting subordinates
Equal employee opportunity for promotions and good pay
Eliminate cultural and gender-gaps
Restore ethical conduct
Restore employee pride in company
Restore employee morale in company
Improve employee relations and interactions between subordinates and management

Step 4; Management Theory -

In the former Soviet Union, "Jewish people could not complain, could not voice their opinions," he said. "XXreminded me of the forer Soviet Union." (
In the mid 90s, prior to the discrimination lawsuit, XXmanagement was perceived by their employees as a militant dictatorship, running a vertical, top down management model with low ethical standards and a race discriminatory approach to hiring employees. Their leadership styles not only discriminated against race, but also gender, which lead to resentment among employees that were not in managerial positions. I've seen too many managers remain in their positions or even promoted despite a track record of bad business decisions (, 2000)
Founded in xx the company was shortly thereafter renamed XX. Problems first began in xxxx when a lawsuit was brought against XX for contaminating water within the country of xx. That lawsuit was then followed in 1994 when management officials were secretly caught on tape making racially biased, discriminatory remarks. Finally in 1999 a gender-biased lawsuit was posed against XX and cost the company more than an additional 3 million dollars. Call it a curse, call it a bad publicity, call it bad management.
The anti-discriminatory wrongdoings were exposed as extending outside people of color. In xx chemists raised a lawsuit against their supervisors claiming anti-racism. Both scientists had been XXfor many years and been part of productive teams. When they were both fired on the same day in January, they raised claim to anti-racism. The claims were met with this response from XX spokesmen, We regard charges of widespread anti-Racismin the company as unsubstantiated."

Step 5; Diagnosis & Barriers -

The 1994 discrimination case that was eventually settled in 1999 resulted in a 175 million dollar payout. The lawsuit case was based on statements made in meetings behind closed doors amongst company officials, which were secretly caught on tape. With statements such as, "All the `jellybeans' are going to stay at the bottom of the bag," and in another statement "I'm still having trouble with x. Now we have y.
As discussed within this class, management plays a strong part in the ethical foundation of a company. With senior management portraying such poor ethical behavior it becomes understandable how such prejudicial behavior and statements led to these lawsuits and negative media.

Step 6; Diagnosis & Solutions -

XXmanagement failed to realize that the behavior that goes on behind closed doors in the boardroom would continue downward through the management chain. Failing to live up to proper ethical standards they drove a car on the wrong side of the road for too long and eventually were involved in a multi-car accident.
XXmust take a new approach. Managers should be trained in cultural diversity and a new zero tolerance policy towards discrimination must be established. The corporate culture of the company should be refreshed with ideas on how to unify the company. Finally a more diverse workforce must be created with the opportunity for people of different race, and religion and that all employees be allowed the equal opportunity to be promoted. In summation this plan should [seek] input from our employees, numerous organizations and individuals, and we looked at the best practices in industry.

Step 7; Action plans to overcome barriers -

a.XXis in dire need of a company wide diversity-training program. Starting with top-level management and filtering down to the lowest level employee. XXmust have a program that covers all employees equally. As the workforce becomes more diverse, XXmust have a program that encompasses a diversity of cultures, ideas, experiences, perspectives and people. b.There are several alternative types of programs from which to chose: 1.Mentoring programs that help employees grow and learn from other employees with increased focus on gender and race.2.Manager specific training that helps improve manager awareness of cultural differences and provides the skills necessary to deal with these cultural differences.3.Outreach programs that let employees meet and talk to outside agencies about problems within the company.4.Diversity training and education programs that help managers and employees alike learn the specific differences they should be aware of like race, color, gender, age, national origin, and sexual orientation.c. XXbeing a global company with branches all over the world would benefit more from a diversity-training program that reflects the overall values of the company and shows that they want a workforce that reflects the race, gender and ethnicity of the communities where the company operates.
d. XXneeds to design a diversity program that uses a variety of tools, strategies and approaches to help attract, retain, develop and support a diverse, world-class workforce. These tools are:
1. Training and education programs that teach diversity.
2. Organizational policies that mandate fairness and equality for all employees.
3. Mentoring programs.
4. Performance appraisal systems that is nondiscriminatory.
5. Career development programs.
6. New employee orientation program that is broken down into three major components.
a. Vision and values of the company pertaining to the company culture.
b. Team building that helps new employees start building strong working relationships focusing on diversity.
c. Buddy System that helps build work relationships and navigate the company diversity program with experienced peers.
7. Manager training programs that educate managers on how to better treat and communicate with employees from a diversity point
e. XXmust learn how employees diversity can shape their work habits, work style, interpersonal communications and interaction in the workplace. To manage diversity effectively, it is important that each supervisor and employee be aware of his or her own diversity and understands how different cultures influence each other within the company framework. The initial cost of this program will be prohibitive in the beginning, but is nothing compared to the lawsuits the company faces if these problems continue.

Step 8; Consider probable consequences to your action plan -

a. The only negative consequence of putting a diversity program into place at XXis the resulting changes themselves. Employees that have worked at XXin the years before now will have to accept change. The result may lead to distraction, and possible loss of key members of the workforce that cant adapt to the new ethical standards and cultural changes. Racist language and behavior on the part of employees and managers in the past was normal behavior at XX. Changing the culture within the company along with changing the employees views will be a challenge.
b. The positive consequences of a diversity program are having all employees know and understand that discrimination at any level is wrong. Having a system of checks and balances allows the company to move forward into the future. Diversity efforts can substantially increase the companys productivity and profits over the long run.
c. Another positive consequence will occur as the company culture changes. Companies that do business with XXwill see that change in other ways; including improvement in employee work habits and attitude. They are likely to see a more diverse group of employees working and an overall improvement in employee attitude toward their jobs. These internal signals will indicate that XXis moving forward within the company keeping pace with the world in general. XXmay witness in an increase in profits while direct competitors may see a profits decrease as companies that refused to do business with XXin the past because of concerns about company culture and ethical practices begin to feel more comfortable doing business with them as these changes take place.

Step 9; Compare your action plan to your larger contexts -
a. Respect for diversity should be one of XXs core mission values. This means that appreciating the uniqueness of individuals and their varied perspectives and fosering an inclusive environment where every person can fully participate. XXwants to be known as a diverse company so diversity must fit into the corporate mission.
b. For the diversity program to work it must start at the top of the company and work its way down. The culture at XXis outdated. Culture refers to a companies values, beliefs, and behaviors. As the diversity program is implemented into the company structure the culture will slowly start to change. As the culture starts to change the mission of the company will also start to change. When the diversity program starts to take effect the company will begin attracting the best workforce encompassing a diversity of cultures, ideas, experiences, perspectives and people.
c. The companys sustainable competitive advantage allows for the maintenance and improvement of the companies competitive position in the oil market. It is an advantage that enables the company to survive against its competition over a long period of time. The strength of the companys culture is one of the most fundamental competitive advantages. When a diversity program affects and changes the culture from within the company, employees will passionately pursue the companys cause and mission, which will put the company in a better position for success.

Step 10; Consider the external factors -
Some socially responsible investors include evaluations of companies workplace policies and practices in their investment decisions. Among the factors they consider are a companys progress on such issues as diversity and workplace culture. Consumers are taking a companys corporate social responsibility reputation like workplace issues into account when making purchasing decisions. Customers, potential employees, investors and the community are increasingly paying increased attention to diversity as part of a companys overall corporate social responsibility.

Step 11; Assess the implications for the two directions of corporate integrity -

The training and changes outlined above should have a positive impact within the company for the overall synergy of the employees while at the same time improving reputation and value for internal and external stakeholders alike. It is highly probable that the employees that are guilty of discrimination in this case may find it difficult to change the way they interact with their fellow employees. Even though this will be a difficult transition period for them the end result should prove to be a better work environment for everyone concerned. If these changes do not take place the company will certainly be involved in additional lawsuits which have already proven to be much more costly than implementing these changes across the company. XXalso has to consider its reputation in this day and age when corporate image is a very real and tangible asset. Consumers and stockholders alike have become very fickle about which companies they back or buy from based on public opinion of how a company fits in to our overall society today.

Step 12; Interpret the original case elements in light of the larger horizons of the era -

The elements of this case are somewhat surprising considering that it happened in the not too distant past. American society has condemned ethnic and sexual discrimination for decades even though there are still pockets of resistance to these shifts in thinking throughout the country. With as much cultural diversity as there is at a global company like XXit seems almost impossible that this kind of treatment was prevalent at the corporate level for so long. In this case it is assumed that the company must act within the guidelines set by the society in which it resides. The outcome could be very different if we moved the company headquarters to a Middle Eastern country where traditions and ethical standards are very different than they are in the United States. If this company was in a country where women are considered inferior to men and people with different religious ideas would be ostracized our action plans would not even be considered. In fact there probably would not even be any cause for concern at all. The practices that brought about the lawsuits would have been considered both acceptable and expected.

The lack of commitment by XXmanagement in areas of corporate cultural and ethical practices cost the company millions of dollars in lawsuit settlements. The company must implement effective change in a number of areas: management training, changes in company culture, hiring practices, and providing opportunity for employee growth and opportunity within the organization.
Team A believes that with these changes, XXwill become a more culturally diverse company, provide itself with new business opportunities with companies that may have balked at doing business with XXprior to these changes, and also increase employee morale and job satisfaction.




Best wishes,

Lorin Loverde, Faculty


University of Phoenix
[email protected]
[email protected]
Central Time
1-956-377-4210 (email preferred)

There are faxes for this order.

1. Read the Rocky Mountain Mutual case at

Complete Assignment 1 at the end of the case in approximately three pages. Be sure accomplish the following:

Apply as many concepts as possible from the readings. After you've written the memo, describe how you used the ideas from the readings.

2. Now apply some of the background material to your own life in 1-2 pages. First, what is something at work that really cheeses you off--something you would really like to change? Once you've identified it, write a persuasive memo that makes your case and uses guidelines from Cialdini, Conger, and/or Bowman. It can be about any topic that might come up at work that calls for you to persuade someone or some people. Examples include:

? why you should get a raise,

? why the new performance appraisal system should be junked,

? why your colleagues should do more active listening,

? why the company should ditch its 1970's logo

? etc.

Be sure to explain which guidelines you used in the memo. Finally, explain why your memo was ethical, using ideas from Cialdini.

Submit your assignments to CourseNet by the module's due date.

Assignment Expectations:

Write a persuasive memo.

Write a summary explaining why you used the principles you used in writing your memo.

Performance Management System in China

Imagine that you have been hired by the HR Director of a U.S.-China joint venture to help develop, implement, and evaluate the ROI (return on investment) for a performance management system. Please read the required background readings and any relevant resources that you locate on the Internet, and then:

Prepare an executive report in which you outline and discuss the critical issues that need to be addressed in developing, implementing, and evaluating a performance management system in a China-based US-China joint venture whose employees are predominently Chinese nationals.

Keys to the Assignment

Key aspects that should be covered in this case study include:
?Demonstrate an understanding of implementing performance management systems
?Show an understanding of international considerations in performance management, including culture, leadership, feedback, etc.
?Other areas which you feel are relevant to international performance management systems

Bring in at least 5 library sources to help strengthen and support your discussion.

Assignment Expectations:

Your paper should demonstrate critical thinking and analysis of the relevant issues and HRM actions, drawing upon all of the required background readings and relevant sources from your prior courses and your own library search. Use website information sparingly (reputable websites only).

Prepare a paper that is professionally presented (including a cover page, a "List of References," and a strong introduction and conclusion).

Proofread your paper carefully for grammar, spelling and word-usage errors.

Address all aspects of the assignment as stated.

Provide private-sector employer examples of HRM programs, systems, processes and/or procedures as you address the above assignment requirments. Provide names of the employers. Use different employer examples in your case paper than those used in your SLP paper.

Limit your web search and focus instead on your library search. Bring in information from the background readings as well to help add depth and validity to your discussion.

Give authors credit for their work. Cite sources of borrowed information in the body of your paper as footnotes, numbered end notes or APA style of referencing.

Performance Appraisal Survey Analysis
Using the Supplemental Material "Performance Appraisal Survey" below, administer the survey to three-to-five hypehtetical people within the same organization. Prepare a 700-1,050-word paper in which you analyze the survey responses. Identify the type of performance appraisal used. In your paper, list some common problems identified in the results and compare the results to your own expectations and experiences. Based upon your analysis, include recommendations to improve the existing performance appraisal process.

Performance Appraisal Survey
Directions: Circle the most appropriate response for each question and provide any relevant comments below each question.
1. I received a timely performance appraisal.
Strongly Agree/Agree/Disagree/Strongly Disagree

2. I received a fair performance appraisal.
Strongly Agree/Agree/Disagree/Strongly Disagree

3. My performance appraisal results were what I anticipated.
Strongly Agree/Agree/Disagree/Strongly Disagree

4. My performance appraisal was measured against my job description/duties/expectations.
Strongly Agree/Agree/Disagree/Strongly Disagree

5. I was provided recommendations for improvement during my performance appraisal.
Strongly Agree/Agree/Disagree/Strongly Disagree

Performance Appraisals are the main ways organizations evaluate their employees. Performance appraisals have many benefits. Performance appraisal data helps organizations make better pay and promotion decisions. They also are a means of helping employees to improve their performance by identifying strengths and weaknesses. They also play a role in career planning.
But performance appraisals also have their problems. Look at the link below for an article entitled ?The Top 50 Problems with Performance Appraisals.?

First, you should select four (4) of these 50 problems with performance appraisals. Then prepare a 2-3 page paper. Describe each problem in your own words; relate your own experience, if you have any, from your past jobs; then outline what an organization or a manager could do to prevent this problem. Be specific in your recommendations.

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