• LUV It or Leave It? Southwest Airlines Reflects on Organizational Choices

    In 2019 Southwest was the only US airline to remain profitable for nearly 50 years in a row, to never file for bankruptcy, and to never furlough or lay off employees. At the core of its profitability was a commitment, unlike other airline carriers, to keep only Boeing 737s in their fleet, thereby streamlining operational costs and training practices. This keep-it-simple corporate strategy was supported by a strong sense of community and shared values that fostered a cross-functional cohesion among Southwest employees-a culture that other low-cost carriers found difficult to replicate. However, The company's keep-it-simple corporate strategy was tested in March 2019 when Southwest (along with other airlines ) was forced to ground 34 of its newest 737 MAX aircraft, after the Federal Aviation Administration cited safety concerns following the crash of two 737 MAX planes. As a result, Southwest considered parting with its long standing single carrier policy. In this case, students will be asked to consider what ripple effect a move away from a single-source vendor might have on the company's highly efficient operations and organizational culture.
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  • New York City Teacher Incentive Program Agreeing on a Plan

    After navigating the complex political landscape of the New York City Board of Education, the teacher's union, and the mayor's office, in 2006 the city is ready to launch a pilot program to incentivize teachers. This three-part case provides students with background on what has constituted successful teacher incentive programs in other school systems and the components of New York's pilot program...asking students to analyze the results of New York's program and consider the strengths and weaknesses of its design.
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  • Compensation Plans at Pearson & Daye Securities

    In 2003 Harry Pearson and James Daye established - along with three other equity partners - a boutique investment banking firm with an entrepreneurial, informal office culture that delivered high quality customer service. In so doing, they offered a streamlined compensation plan that, in their view, would directly and fairly reward their employees' performance. However, as the firm grew, some members of their staff sought a more transparent process by which to measure their progress and the associated financial benefits - as well as the possibility to acquire equity in the firm. What compensation scheme would allow Pearson and Daye to reward their valued employees without losing sight of their initial goals? And how much would the five original partners consider diluting their holdings?
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  • MacAfee Building Supply: Improving Performance Across Retail Stores (B)

    MacAfee Building Supply, a distributor of building supplies and heating and plumbing products, had grown to become the largest company of its kind in the world by incentivizing profit-maximizing behavior at the local level. John Smith, a senior manager at the company's Build subdivision, had nevertheless grown concerned that MacAfee's incentive scheme, which incentivized profits at the branch level, was actually hindering long-term global profitability by creating a lack of cooperation among branches and discouraging branch manager's investment in long-term endeavors. In this three-part case students first recommend strategies for better aligning employees to a long-term focus, and then evaluate the results of the program the company selected.
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  • MacAfee Building Supply: Improving Performance Across Retail Stores (C)

    MacAfee Building Supply, a distributor of building supplies and heating and plumbing products, had grown to become the largest company of its kind in the world by incentivizing profit-maximizing behavior at the local level. John Smith, a senior manager at the company's Build subdivision, had nevertheless grown concerned that MacAfee's incentive scheme, which incentivized profits at the branch level, was actually hindering long-term global profitability by creating a lack of cooperation among branches and discouraging branch manager's investment in long-term endeavors. In this three-part case students first recommend strategies for better aligning employees to a long-term focus, and then evaluate the results of the program the company selected.
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  • MacAfee Building Supply: Improving Performance Across Retail Stores (A)

    MacAfee Building Supply, a distributor of building supplies and heating and plumbing products, had grown to become the largest company of its kind in the world by incentivizing profit-maximizing behavior at the local level. John Smith, a senior manager at the company's Build subdivision, had nevertheless grown concerned that MacAfee's incentive scheme, which incentivized profits at the branch level, was actually hindering long-term global profitability by creating a lack of cooperation among branches and discouraging branch manager's investment in long-term endeavors. In this three-part case students first recommend strategies for better aligning employees to a long-term focus, and then evaluate the results of the program the company selected.
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