...Action Case Study: Companies Are Trying to Improve Employee Attitudes during the Recession Introduction “Creating an effective and productive workplace takes a firm commitment from management even in the best of times” (Ballard, 2012). When the recession hit full force, many companies had to make some difficult decisions. “In a 2009 survey conducted by the American Psychological Association, 68 percent of employed Americans reported that their employers had taken steps such as putting a freeze on hiring or wages, laying off staff, reducing work hours, benefits or pay, requiring unpaid days off or increasing work hours because of the weak economy” (Ballard, 2012). During a period of recession, managers need to understand the relationship between employee well-being and the performance of the company. There are several means managers can use to improve employee performance. Some of these methods include: the utilization of Schwartz’s 10 Values, adapting attitudes and behaviors, increasing employee involvement through incentives, and the utilization of Azjen’s theory of planned behavior to shape the intentions and behaviors of employees. In order to form During a period of recession, managers need to understand the relationship between employee well-being and the performance of the company. There are several means managers can use to improve employee performance. Some of these methods include: the utilization of Schwartz’s 10 Values, adapting attitudes and behaviors...
Words: 2685 - Pages: 11
...Case study: Companies are trying to improve Employee attitudes during the recession. This is a case study which revolves around the steps taken by managers and corporations in improving the attitudes of employees towards recession. Real life examples are given in the form of consumer services giants like Bain & Co, Home Depot and Best buy. Now let us look at the facts and the answers to the questions asked. Facts Presented in the case: 1. Bain & co.’s CEO Steve Ellis hired people even during the recession. He added consultants in the hot-growth areas such as emerging markets and targeted experienced consultants who were left stranded during the hard financial times. 2. Home Depots chairman and chief executive Frank Blake set realistic goals to boost employee morale in spite of handing pink slips to some of the employees. This resulted in many employees getting high bonuses thus resulting in high employee morale. 3. Companies which took advantage of employees in the downturn were rewarded with many employees leaving the company. 4. Best buy found ways to boost employee morale by getting them involved in the organization. 5. JetBlue has cut back across the board and over the past year –delaying aircraft orders, trimming head count through voluntary unpaid leaves and even shedding the free pillows from its aircraft in order to cut costs. Identifying the Key issues: The key issues that can be observed from the above case are as follows. 1. Corporations...
Words: 4020 - Pages: 17
...2.4 Assignment: Values and Attitudes Fundamental ingredients for achieving job satisfaction and organizational commitment begin with personal and corporate values and attitudes. Out of these values and attitudes come the desire for involvement on the part of employees, and aligning personal and organizational goals. Consideration of the components of attitude, whether affective, cognitive, or behavioral components, can assist managers and leaders when it is part of their responsibility to make things happen, especially in times of personal and organizational stress. Read the OB in Action Case Study in Chapter 6, “Companies Are Trying to Improve Employee Attitudes during the Recession,” on pages 176-177. 1. Based upon the classroom discussion and your reading, write a paper that answers the following questions: a. Which of Schwartz’s ten values are driving the behavior of managers at Bain & Co., Home Depot, and Best Buy? Provide examples to support your conclusions. b. How would you describe the affective, cognitive, and behavioral components of Steve Ellis’s attitude toward managing in a recession? Be specific. c. How are Home Depot and Best Buy trying to increase employee involvement? d. Use Ajzen’s Theory of Planned Behavior (Figure 6-3) to analyze how managers can increase employee performance during a recession. Be sure to explain what managers can do to affect each aspect of the theory. e. Based on what you learned, what advice would...
Words: 285 - Pages: 2
...General draft for our case study * What is Recession: Recession is the worst situation which affects everyone from top to a lower person (boss to employee).companies that increases their workforce in the time of slowdown seem to reaping the benefit of more profits.(from article 8).To prove this point I just want to quote an example of Indian companies. Tata Motors, Asian Paints and Hero Honda Motors, which increased their workforce, posted profit growth of over 100% each while Hero Honda Motors' profits grew by 95%. On the contrary, at Gail (India), Tata Steel and Bank Of India, which saw a decline in workforce levels, net profit went down 39% to 59% respectively.( article 8). * I like this example : If your neighbor gets laid off, it's a recession. If you get laid off, it's a depression. ( http://www.investopedia.com/articles/economics/08/recession-affecting-business.asp#ixzz3X030E9fF) * Causes of recession: According to me I think this is the most important aspect of our case study.like what are the main causes of recession. 1) According to me the fist cause of recession is imbalances in the international trade markets. 2) May be changes in government policies. 3) Stock market crash. 4) Assest bubble (when the prices of companies, stocks or houses become inflated beyond their sustainable value.) * Problems caused by the recession : I am going to mention all the problems which are caused by Recession.As I discussed above it causes...
Words: 624 - Pages: 3
...------------------------------------------------- The impact of the global recession within business The following is a report on how the Global Recession has impacted on Customer Relations Management and how more and more businesses worldwide have begun to adopt CRM systems in a bid to improve their business in the current economic climate ------------------------------------------------- The impact of the global recession within business The following is a report on how the Global Recession has impacted on Customer Relations Management and how more and more businesses worldwide have begun to adopt CRM systems in a bid to improve their business in the current economic climate Report by: Elaine McGrath Student K00121928 Limerick Institute of Technology Report by: Elaine McGrath Student K00121928 Limerick Institute of Technology Business Report The Impact of the Global Recession on CRM within business Elaine McGrath K00121928 (CRM) Customer relationship management is a business strategy for managing organisations interactions with their customers, their clients and their future sales prospects .It uses technology to organise and automate their business processes such as sales and marketing activities, customer service and technical support. According to a Goldman Sachs Study CRM is considered the second most important initiative after security for business. The overall goals of CRM are to seek out, find and win new clients and to implement strategies to...
Words: 2609 - Pages: 11
...MGT-521 June 19, 2012 Roberto Guzman Abstract In continuation with my Business Analysis on Starbucks this week, I will review the strategic initiative that Starbucks has taken to adapt in the changing market. I will examine how the recent economic trend as affected the business, how they used or could use a strategy for adapting to the changing market with the recession going on. I introduce tactics that Starbucks has implemented or could implement to achieve their goals. I will also include a section on how their human resources management plays an important role in making sure Starbucks achieves their goals. In the end I will make my final decision whether or not, I want to invest my money into Starbucks Corporation. There will be a review on the analysis from my last two papers that I did and will show support for my conclusion. Business Analysis Part III Because of the recession Starbucks has had to make many changes to keep itself in the competitive market while trying to retain the authenticity of its brand. The Corporation has had to make some adjustments to its upscale formula to address a growing demand for a high quality product at an affordable price. Starbucks has to conform to keep their existing customers by outlining a twofold growth strategy, first to focus on profits in their existing stores and by making a new strategic investment in key initiatives (Barnes, 2011)...
Words: 3753 - Pages: 16
...and organizations are no longer constrained by national borders, making it even more important to understand organizational behavior (Robbins & Judge, 2011) but it has also become far more difficult. With the globalization, organizations have embraced more workforce diversity, inviting people into an e.g. American organization, from all over the world, plus more companies merge with foreign countries in e.g. Asia. This puts even more emphasis on how important it is to understand the behaviors within an organization, because each person will have a different background, culture and biographical characteristics. Because of the globalization, a crisis in one country, will quickly influence other countries. As we saw with the economic crisis in 2008 – the worst recession since the Wall Street crash in ’29 – a crisis in the US very quickly spread to the rest of the world. This crisis put a huge strain on both big and small businesses all over the world; challenging managers to still keep focused and engaged. Because with the recession, the reality presents two discrete leadership challenges: Keeping a company on track while the global economy is falling apart and keeping it functional until the economy recovers (Robison). The book “Managing people in a downturn” written by the psychologist Adrian Furnham, is a collection of 74 essays, diatribes and thought pieces. He addresses the issues that every manager faces at...
Words: 2233 - Pages: 9
...Debunking the Goal Setting Theory Presented to Trudy Dunson, Instructor MGMT 2125, Performance Management By Andrea Smith 10/13/2014 Often times in the business world, organizations become so fixated on the goals they set, that when they begin to go wrong, an organization will invest more into that goal instead of looking for a different path. Oliver Burkeman’s book, “The Antidote: Happiness for People Who Can’t Stand Positive Thinking” devotes a whole chapter to the importance or lack thereof of setting goals. In his book, he tells a story of Chris Kayes who was on the foothills of Mt. Everest at the same time the tragedy that took the lives of eight climbers depicted in the book, “In Thin Air.” Kayes observed even through this tragedy, that the climbers did everything correct based on the goal setting theory; they had a clear goal and worked to achieve it above all else however the results were devastating still. In this example, the climbers ignored the evidence that told them that they should turn away from their goal an instead invested more time and energy which led to their deaths. According to Locke and Latham (2006) as long as a person is committed to their goal and does not have any other conflicting goals, there is a positive relationship between the goal and performance. Unfortunately though, goal setting has been prescribed and not monitored. Therefore, like all prescription abuse, organizations fail to recognize the harm that goals can caused due to creating...
Words: 3814 - Pages: 16
...6351 Dr. Donna Stringer 10/16/14 Executive Summary The following case anlaysis has been conducted on the Harvard Business Review’s Leading Change at Simmons article. The analysis intends to present the situation at Simmons during 2001 and some key management decisions to consider that would positively decide the organization’s fate. There are several challenges facing Simmons, both within and beyond the organization’s control, that will require a visionary to help navigate them to success. This paper takes the position that the newly appointed CEO of Simmons, Charlie Eitel, can convince the shareholders to invest in culture change for Simmons and positively build the organization’s value. In an effort to provide objective analysis and empirically based recommendations, the analysis has followed a methodology that presents some important organizational theoreis pertaining to the situation with Simmons, as well as insight into goals, risk, and capabilities. Following that analysis will be a set of reommendations for how to implement the goals into plans that could achieve the desired results, namely convincing the investors to allow Eitel to roll out the costly Great Game Of Life program and rebuild the company from its core. Case Overview Simmons is currently one of the top mattress firms in the U.S. and has been repeatedly recognized as one of Forbes 100 top places to work. Throughout the company’s long history, it has undergone change of various magnitudes...
Words: 3775 - Pages: 16
...downturn. Classic Airlines was not immune to the recession. Classic Airlines Classic’s Rewards Program is currently suffering. Classics Customer Rewards Program has seen a 19% decrease in the number of members and a 21% decrease in flights among its current reward members. Classic Airlines marketing department needs to make an effort to increase customer volume and sales. So what can Classic Airlines do to increase these numbers? Identifying and addressing the internal and external factors contributing to Classic Airlines current crisis will help alleviate pressure associated with this current economic downturn. Employing market data to help develop goals while recognizing and focusing on the challenges and opportunities facing Classic Airlines, will give the airline the ability to take their future to new heights. Classic Airlines is the fifth largest airline and commands a fleet in excess of 375 jets that serve 240 cities with more than 2,300 daily flights. The airline also manages a staff of nearly 32,000 employees. Classic has managed to remain profitable over the past year. The airline earned $10 million on $8.7 billion in sales; however with rising overhead costs Classic Airlines is experiencing setbacks. The airlines share prices have decreased by 10% in the past year. Furthermore, with the negative publicity from Wall Street, the media, and the public, Classic Airlines has encountered a continual decrease in employee morale. Due to the persistent economic strain airlines...
Words: 7997 - Pages: 32
...Introduction In today’s work place there are a plethora of rules and regulations that a business must follow in order to remain compliant. Being aware of the employer and employee rights is essential for any Human Resources professional. With that being said, Labor Unions are an important component in the landscape of the American workplace because they focus on the rights and treatment of the employee and not the employer. Unions have a long history of support within companies, but have also faced much oppositions as well. While unions provide collective barging, support with wages and employment policies, unions can also cause great expense for the company or organization that is trying to organize. When a union is trying to reorganize...
Words: 2099 - Pages: 9
...a personal mode of transport caused by the lack of an efficient public transport system. Suzuki Motor Company was chosen from seven prospective partners worldwide. This was due not only to their undisputed leadership in small cars but also to their commitment to actively bring to MUL contemporary technology and Japanese management practices (which had catapulted Japan over USA to the status of the top auto manufacturing country in the world). A licence and a Joint Venture agreement was signed between Govt of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982. The vision of the company is “to be the leader in the Indian automobile Industry, creating customer delight and shareholders wealth. A pride of India”. Maruti Suzuki India Ltd. has always been a leader in the Indian automobile industry & we have studied the attitudes and behaviours that prevail within the organisation which are a major contributor to the success of the organisation. Understanding of the organizations parameters Leadership Leaders can make a difference. They have the ability to influence a group towards the achievement of vision or a set of goals and hence are needed to create vision for the future, and to inspire organizational members to want to achieve those visions. Maruti started in 1983. Since inception, it has seen many ups and downs. During recession in1999, it had to do severe layoff which saw resistance from workers. Business operation style has remained...
Words: 3293 - Pages: 14
...Ford Motor Company Corrie Madison-White MGT/521 August 13, 2011 Andrew Rosenberg Abstract A mutual funds manager is trying to decide whether or not they would be willing to invest in the Ford Motor Company. In order to make an informed decision the potential mutual funds manager will look at how recent economic trends are influencing the business, strategies the company has used or could use for adapting to changing markets, tactics the company has implemented to achieve their strategic goals, and the role human resource management plays in helping the company achieve its business goals. Ford Motor Company Ford Motor Company is an American automaker that was founded by Henry Ford. The company was incorporated on June 16, 1903. The headquarters is located in Dearborn, Michigan. It is currently the fourth largest automaker in the world. Ford Motor Company not only produced the Ford brand, they produce Lincoln and Mercury brands. Recently Mercury was discontinued. They acquired Jaguar, Volvo, and Land Rover. They have since sold all three brands. The company also has a small stake in Mazda and Aston Martin (History of Ford Motor Company, 2011). Recent Economic Trends Gas prices have been on the rise since 2008 and have even gone above $4.00 a gallon. Even though gas prices have gone down slightly, some consumers are still opting to park their cars and use public transportation. Some...
Words: 1847 - Pages: 8
...Impact on Employee Morale during Company Restructuring The worldwide economic crisis has caused too many companies to restructure their corporate setting in order to survive and meet their financial challenges. If you turn on the TV or browse internet these days, it is almost impossible to avoid the bad news of more and more massive layoffs in United States as well as the rest of the world. As this financial crisis deepens, one can’t help asking “Is downsizing or more job cuts our only way out? What is the long term effect of these massive job cuts to our corporation employees? Will we need even longer time to recover from this emotional and morale crisis if the downsizing wasn’t done right?” In this paper, impacts of corporate restructuring on employees’ morale have been explored by reviewing several research papers. Figures were illustrated, strategies were suggested. It is not the question why companies have to downsize or cut jobs, it is how they should do it strategically right to reach the expected goal of benefit and continue to retain the trust and loyalty of the surviving workers. “Trust is one of the most valuable yet brittle assets in any enterprise. So over the long term, it’s far better for companies to downsize in a humane way.” - Robert Reich (Mishra and Spreizer, 1998) During the economic recession, many companies started to restructure their legal, ownership or operation structure in order to be more profitable, competitive and...
Words: 1971 - Pages: 8
...range of products and services to customers over 100 years in the UK. We are trying to identify how the Boots works internally and externally to reach its goal. We are also trying to find out how the Boots motivates its employees to be productive. We will also discuss its organizational structure and design to communicate each other function of the organization. We will discuss its appraisal system and organizational record keeping. We will also find out about its brand image to the stakeholder. Customers are at the heart of their business and they are devoted to providing extraordinary customers and patients care by offering innovative products ‘Only at Boots’ with exceptional values. People are their strength and tell us that Boots is a excellent place to work. They always aim to be the employers of choice by attracting and retaining the most talented and passionate people. BACK GROUND OF THE COMPANY: Boots had established its roots in the mid-19th century by John Boot, an agricultural worker, at Nottingham, in the UK. He opened a small herbalist store on Goose Gate in 1849. After John’s death in 1860, his widow, Mary, continued trading, with the help of her young son, Jesse, who became a full partner when he was 21. The store continued to thrive. In 1877, Jesse took sole control of the Boots. In 1920, he sold Boots to the United Drug Company of America. In 1933, the United Drug Company sold its holding in Boots to a group of British financiers led by John Boot, Jesse’s...
Words: 2974 - Pages: 12
