MGT MIDTERM

Instructions:

The following case study will be your midterm.  It is open-book, open notes.  You can use everything we've covered (so far) to answer the case questions.   

You do not need to rewrite each question.  Just identify each answer numerically.  

SHOULD WE FIRE THEM?

As a senior manager for a global player in an automobile supply company, Rebecca Ellis had joined thousands of fellow employees in the excitement surrounding production of the company’s new engine/transmission-sensing devices for electric and hybrid vehicles.  But barely two years into production, the COVID-19 pandemic struck, requiring employee stay-at-home orders and social distancing. During the shutdown, most customer orders went unfulfilled and the company faced a dramatic financial downturn.

With three decades of service to the company, Rebecca led a contingent of managers intent upon keeping together as much of the company and as many employees as possible.

“We know there will be some necessary cuts,” Rebecca admitted. “But this company has a long history of sticking by its people. Our first priority should be internal streamlining of how we do things and making sure we have the right people on board. Let’s carefully evaluate the situations of employees in case we institute a layoff. In the meantime, let’s consider across-the-board pay cuts and other options to preserve employee jobs.”

Many managers liked what they heard from Rebecca. She was well respected and had an unequaled reputation for her leadership and collaborative skills and her ability to work with managers as well as line workers on the factory floor. People marveled at the number of individuals she knew on a personal level throughout the company.

Drew Nguyen influenced a second contingent within the management group. A brash go-getter with a reputation for fixing companies in crisis, he proposed immediate across-the-board cuts in under-performing employees to implement a solution as quickly as possible. Rebecca rose to her feet in objection. “So we’re going to create a system to fire….”

“If need be, we will fire quickly and cleanly. It’s an opportunity to clear out the deadwood.”

“OK, cut our own hard-working people? It sounds like some lame government commission,” Rebecca said. “We’ve got bright people. This COVID thing simply got worse faster than we imagined. We can work with the people we have in setting up a more efficient workflow, establishing reasonable deadlines to increase output, and if needed cut our own sales….”

Nguyen interrupted, “Rebecca, these are not the days of knowing and caring about everyone in the plant. You’re not throwing out your wife’s uncle Harry. We are taking a serious look at what we do, how we do it, and streamlining everything by keeping the right people in the organization and cutting the rest.”

Rebecca was confused.  "Are you going to just make all these cuts without consent from the VP of Human Resources?"  Even minor decisions needed many signatures up and down the chain. 

QUESTIONS

1.  In chapter one, we learned that there are four functions of management.  Rebecca and Nguyen are struggling with one function in particular.  In several sentences, identify which function is causing a challenge and explain why. (10 points)

2.  In chapter four, we discussed the PESTEL framework.  In three sentences, explain the importance of a PESTEL analysis and describe which macroforce is causing pressure in this situation. (20 points)

3.  In chapter four, we studied different organizational structures.  In several sentences, identify which kind of organizational structure you think this is...and explain how the structure might be causing a problem for Rebecca and Nguyen. (20 points)

4.  In one or two sentences, explain what would Jack Welch (chapter 3) tell Rebecca and Nguyen to do. (20 points)

5.  In several sentences, explain the concept of Corporate Social Responsibility (chapter 6) and then describe which one of the "3 P's" should be prioritized in this situation. (20 points)

6.  In chapter seven, we discussed the difference between an internal versus an external locus of control.  What locus of control do you think Rebecca has?  What locus of control do you think Nguyen has?  In 3- 4 sentences, use this framework to assess these two managers. (10 points)

7.  In several sentences, identify which personality color you think Rebecca and Nguyen might be and explain why. (10 points)

8.  In several sentences, identify which leadership style you think Rebecca and Nguyen might be and explain why. (10 points)

9.  In several sentences, explain how Rebecca should handle this situation. (20 points)

10.  In several sentences, identify which kind of mindset Rebecca and Nguyen might have (growth or fixed, chapter 7) and explain why. (10 points)