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Mental Health and the American Workplace
Mental illness has been described as an epidemic affecting nearly a quarter of all Americans in their lifetimes, often during their most productive working years. Managers who can design organizations that maximize mental health can minimize these risks and boost productivity. This note serves as a guide to understanding mental health in the American workplace. It provides an overview of the most prevalent mental health conditions among employees and the aspects of the work environment that can exacerbate the issues. It also looks at the costs, both to individuals and to companies, of treating or not treating mental health conditions, and outlines the legal framework, insurance plans, and managerial responses to accommodating employees who struggle with mental health issues. To engage students in a role play, the note includes a vignette featuring a struggling CEO. -
Cooks Make Tastier Food When They Can See Their Customers
The unexpected benefits of increasing transparency between employees and customers. -
How Not to Cut Health Care Costs
Health care providers in much of the world are trying to respond to the tremendous pressure to reduce costs--but evidence suggests that many of their attempts are counterproductive, raising costs and sometimes decreasing the quality of care. Kaplan and Haas reached this conclusion after conducting field research with more than 50 health care provider organizations. Administrators looking for cuts typically work from the line-item expense categories on their P&Ls, they found. This may appear to generate immediate results, but it usually does not reflect the optimal mix of resources needed to efficiently deliver excellent care. The authors describe five common mistakes: (1) Reducing support staff. This often lowers the productivity of clinicians, whose time is far more expensive. (2) Underinvesting in space and equipment. The costs of these are consistently an order of magnitude smaller than personnel costs, so cuts here are short-sighted if they lower people's productivity. (3) Focusing narrowly on procurement prices and neglecting to examine how individual clinicians actually consume supplies. (4) Maximizing patient throughput. Physicians achieve greater overall productivity by spending more time with fewer patients. (5) Failing to benchmark and standardize. Administrators, in collaboration with clinicians, should examine all the costs of treating patients' conditions. This will uncover multiple opportunities to improve processes in ways that lower total costs and deliver better care. -
Teckentrup: A Door to Managing Difference
For Kai Teckentrup, the owner and co-CEO of the German "Mittelstand" door manufacturer Teckentrup, balancing competitive pressures, demographic realities and values were at the heart of the diversity program that he had started and championed at the company. Beyond this, attracting skilled workers to Germany was a national imperative; as the native population aged and its numbers in the workforce shrank, it would be critical to find new workers to fund and maintain the retirement and social service programs provided by the government. The company had made significant progress, and Kai was a recognized leader in German business for his attention to and success in managing diversity, but he knew there was much more to do. -
CreditEase: Providing Credit and Financial Services for China's Underclass
In 2013 Ning Tang, who in 2006 founded CreditEase as a broker of P2P loans to unbanked individuals and small businesses in China, confronts the challenges of rapid growth and expansion in a changing regulatory environment. CreditEase needs to develop technology to manage its growth, address issues related to the company's expansion into products and services for China's growing high net worth (HNW) population, including questions about the suitability of its products and its vulnerability to bad debt losses and a potential leveling off of the growth in China's economy, and adjust to new and more intensive regulatory oversight. What should Tang do to position CreditEase so that it can continue to fulfill its mission of making financial products and services available to millions of underserved Chinese while branching out into other, potentially riskier lines of business and ensuring continuing compliance with evolving laws and regulations? Will its rapid growth be sustainable? -
Hacking Tech's Diversity Problem
The technology industry has a big problem with diversity, one that seems to be getting worse: In 1991 women held 37% of computing jobs; today they hold only 26%. But if tech firms want to get serious about hiring, retaining, and promoting more women, they'll need something more effective than sensitivity or mentoring programs that "fix" individual behavior, and longer lasting than cultural change programs. The author suggests an approach that borrows from tech's own playbook on experimentation: Collect detailed data on bias in your organization, identify company-specific ways to measure its effect, create hypotheses about how to move those metrics, and then throw some spaghetti at the wall and see what sticks. Working women face four kinds of bias: prove-it-again (continually being asked to prove their competence), tightrope (backlash for being too assertive or too nice), maternal wall (erroneous assumptions about mothers), and tug-of-war (pressure to distance themselves from other women). All four affect hiring, work assignments, evaluations, and promotion and compensation. Companies need to understand how, and then thwart these biases with "interrupters," small changes to business systems that stop patterns of bias. They can be as simple as adding "salary negotiable" to want ads--which closed the pay gap between men and women by 45% in one study. Doing anything once will not change organizational culture. Bias needs to be disrupted constantly, and the iterative interrupter approach may well be the way to do that. -
Navy SEALs: Selecting and Training for an Elite Fighting Force
The SEALs are the elite special forces of the U.S. Navy. Their selection and training is exceptionally rigorous, with a heavy emphasis on physical condition, stamina, and mental toughness. However, the SEALs have a wide range of missions, many of which are highly sensitive. The case takes place in 2014, as the head of the command charged with SEAL selection and training considers whether some candidates who would make excellent SEALs are being excluded, and some that might be poor in the field are passing. The case examines the selection and training process, and suggests some changes that might be considered. -
Marketing Retirement--or Staying On the Job
Financial packages provide the most common incentive to meet the legal requirement that retirement be voluntary. However, managers have other tools to encourage retirement or encourage staying on the job--within legal constraints and consistent with current health insurance changes that may make pre-65 retirement more desirable. In using these tools, managers must consider demographic realities that offer a large cohort available to replace retirees. To assist managers, a qualitative study among human resource experts probed how companies decide between encouraging retirement and encouraging staying on the job and also how each is accomplished to maintain a workforce best matched to job requirements. Suggestions for marketing retirement include starting early to encourage saving so that employees can afford to retire and improving the retirement 'product' by flexible alternatives to full-time work, including self-employment. Suggestions for keeping employees on the job include tailoring schedules and rewards to the preferences and needs of individuals who might otherwise retire. -
DaVita: A Community First, A Company Second
This case describes the challenges facing CEO Kent Thiry and DaVita as they being thinking about how to integrate a recent acquisition, Health Care Partners (HCP). DaVita had been primarily a kidney dialysis company with a very strong culture built around teamwork, fun, continuous improvement, accountability, and service. The senior management saw DaVita as "a community first and a company second." HCP was an integrated health care provider with a substantially different workforce from DaVita. The case describes the history of DaVita, its industry, its unique culture, and its success over the previous 15 years. It provides a detailed description of how the culture was developed and managed through the use of a series of processes and events including the careful use of language, symbols, and traditions (the company is a "village," team members are "citizens," the use of slogans such as "one for all and all for one," three musketeer costumes, wide sharing of information, involvement of team members, extensive recognition and reward programs, investment in training and socialization, and even a company song). This culture was a competitive advantage in DaVita's financial success by attracting and retaining staff and patients, maintaining control of costs, and improving clinical outcomes. The new challenge was whether this culture could, or should, be exported to Health Care Partners. -
Global Brokerage Group of Hong Kong (A): Selecting a CEO
This case deals with the CEO selection at Hong Kong-based Global Brokerage Group (GBG) a medium-sized financial brokerage house dealing in securities, futures, foreign exchange, wealth management, and precious metals. Since its inception in 2001 the company, led by founder Anson Chan and his close knit cohort of family and friends, achieved steady growth and a solid presence in the local brokerage industry. In 2013, Anson believed it was time to prepare the company for its next phase of growth via listing on the stock exchange of Hong Kong. To transition GBG from a privately-held business to a publicly-listed entity his priority was to professionalize the company with clear segregation of roles and responsibilities at the top management level. In view of the upcoming IPO, Anson's first task was to appoint a strong CEO. The case sets out the industry context, the importance of regulations administered by the Securities and Futures Commission and GBG's organizational and operational structure. Students take on the role of Anson who is reviewing the profiles of six potential candidates and weighing their pros and cons. Who should he choose? -
Global Brokerage Group of Hong Kong (B): A Crisis Unfold
Case B is set 6 months after the selection of the CEO (Case A). An unsuccessful CEO transition unfolds as the new CEO fails to win the support of the top management team even after six months at the top position. Despite his best efforts, the new CEO could make no headway with any of his organizational change initiatives aimed at streamlining performance management and compensation systems. In fact, the situation worsened to the extent that he was ready to step down. The case provides an opportunity for students to analyze the reasons for the new CEO's failure and to what extent Anson was responsible for the situation. Anson's immediate priority was to devise an action plan to avert the impending organizational crisis. -
It's Time to Split HR
The author, a globally known business adviser and speaker, proposes that traditional HR departments divide into two strands: One would primarily manage compensation and benefits and would report to the CFO. The other would focus on improving the people capabilities of the business and would report to the CEO. -
The Whys and Wherefores of Executive Pay
A look at the components of executive compensation--salary, bonuses, stock options, restricted stock, and others--and the forces that have caused some to rise and others to fall in the years since 1992. Draws on research by Kevin J. Murphy, a USC professor who is an expert on executive pay. -
YAAS's Service Center (B)
Supplement to case 914049. This case is about a compensation change at an automotive service company in the Middle East. The case allows investigation and analysis of many issues related to compensation design and human resource management, and even change management. The focus of the case is all the ways in which bad incentive design leads to dysfunctional behavior. In particular, a crucial issue is whether individual incentives are best or whether team incentives are best, and why. In the B and C cases, the case rolls out in sequence as more and more information is revealed to students so the unfolding of events keeps students interested and engaged in how to solve the various problems that arise, including a near mutiny. -
Reaching the Summit and Beyond: Hong Kong Broadband Network's Innovative Approach to Talent Management
The case is based on Hong Kong Broadband Network (HKBN), the second-largest broadband service provider in the territory in 2012. The young and dynamic company is growing at a faster pace than its competitors, and attributes this success to its innovative approach to Talent management, which involves attracting, developing, retaining, and rewarding its 3,080-strong Talent base. HKBN's Talent enhancement programs are designed to drive strong individual, team, and organizational performance, inspiring a highly engaged workforce and a high-performance work culture across the organization. In mid-2012, when HKBN's parent company, City Telecom, sold HKBN and all related telecom businesses to a global private equity firm―CVC Capital Partners-it created a new challenge for NiQ Lai, head of Talent engagement and CFO. The new directive for NiQ was to lead HKBN to an initial public offering (IPO) in three to five years' time. To do so, the key question was, how should the management team leverage its Talent base to maximize the value of the company? -
The Promotion Process at Chung and Dasgupta, LLP
The "Promotion Process at Chung and Dasgupta, LLP" set of cases explores the roles of general and firm-specific human capital in employee performance measurement, feedback, and promotion/compensation decisions. In the cases, a leading law firm must decide whether to match an outside partnership offer to one of its leading litigators, when the litigator is not yet eligible for partnership according to the existing rules by which the firm elects partners. A second non-litigator at the firm has performed just as well as the star litigator, but has no outside partnership offer, because her role and skills are specific to the firm, and not as valuable to the outside market. The case can be taught via a role play, where one student plays the role of the non-litigator, and a second student plays the role of a formally-assigned mentor from the law firm's partnership group. (If using the role play option, instructors should use the general information case "The Promotion Process at Chung and Dasgupta, LLP," 914-044, and the roles: "Chung and Dasgupta: Information for Jordan Ramirez," 914-046, and "Chung and Dasgupta: Information for Casey Clark," 914-047.) It can also be taught as a traditional case, without a role play, by using general information case "The Promotion Process at Chung and Dasgupta, LLP" (914-044) and "Chung and Dasgupta: Supplemental Information on Jordan Ramirez and Casey Clark" (914-045). The cases provide a rich backdrop to explore issues around firm-specific human capital, and can also be used to discuss subjective performance evaluation, best practices when giving employee feedback, and careers at professional service firms. -
Chung and Dasgupta: Supplemental Information on Jordan Ramirez and Casey Clark
The "Promotion Process at Chung and Dasgupta, LLP" set of cases explores the roles of general and firm-specific human capital in employee performance measurement, feedback, and promotion/compensation decisions. In the cases, a leading law firm must decide whether to match an outside partnership offer to one of its leading litigators, when the litigator is not yet eligible for partnership according to the existing rules by which the firm elects partners. A second non-litigator at the firm has performed just as well as the star litigator, but has no outside partnership offer, because her role and skills are specific to the firm, and not as valuable to the outside market. The case can be taught via a role play, where one student plays the role of the non-litigator, and a second student plays the role of a formally-assigned mentor from the law firm's partnership group. (If using the role play option, instructors should use the general information case "The Promotion Process at Chung and Dasgupta, LLP," 914-044, and the roles: "Chung and Dasgupta: Information for Jordan Ramirez," 914-046, and "Chung and Dasgupta: Information for Casey Clark," 914-047.) It can also be taught as a traditional case, without a role play, by using general information case "The Promotion Process at Chung and Dasgupta, LLP" (914-044) and "Chung and Dasgupta: Supplemental Information on Jordan Ramirez and Casey Clark" (914-045). The cases provide a rich backdrop to explore issues around firm-specific human capital, and can also be used to discuss subjective performance evaluation, best practices when giving employee feedback, and careers at professional service firms. -
Chung and Dasgupta: Information for Jordan Ramirez
The "Promotion Process at Chung and Dasgupta, LLP" set of cases explores the roles of general and firm-specific human capital in employee performance measurement, feedback, and promotion/compensation decisions. In the cases, a leading law firm must decide whether to match an outside partnership offer to one of its leading litigators, when the litigator is not yet eligible for partnership according to the existing rules by which the firm elects partners. A second non-litigator at the firm has performed just as well as the star litigator, but has no outside partnership offer, because her role and skills are specific to the firm, and not as valuable to the outside market. The case can be taught via a role play, where one student plays the role of the non-litigator, and a second student plays the role of a formally-assigned mentor from the law firm's partnership group. (If using the role play option, instructors should use the general information case "The Promotion Process at Chung and Dasgupta, LLP," 914-044, and the roles: "Chung and Dasgupta: Information for Jordan Ramirez," 914-046, and "Chung and Dasgupta: Information for Casey Clark," 914-047.) It can also be taught as a traditional case, without a role play, by using general information case "The Promotion Process at Chung and Dasgupta, LLP" (914-044) and "Chung and Dasgupta: Supplemental Information on Jordan Ramirez and Casey Clark" (914-045). The cases provide a rich backdrop to explore issues around firm-specific human capital, and can also be used to discuss subjective performance evaluation, best practices when giving employee feedback, and careers at professional service firms. -
Chung and Dasgupta: Information for Casey Clark
The "Promotion Process at Chung and Dasgupta, LLP" set of cases explores the roles of general and firm-specific human capital in employee performance measurement, feedback, and promotion/compensation decisions. In the cases, a leading law firm must decide whether to match an outside partnership offer to one of its leading litigators, when the litigator is not yet eligible for partnership according to the existing rules by which the firm elects partners. A second non-litigator at the firm has performed just as well as the star litigator, but has no outside partnership offer, because her role and skills are specific to the firm, and not as valuable to the outside market. The case can be taught via a role play, where one student plays the role of the non-litigator, and a second student plays the role of a formally-assigned mentor from the law firm's partnership group. (If using the role play option, instructors should use the general information case "The Promotion Process at Chung and Dasgupta, LLP," 914-044, and the roles: "Chung and Dasgupta: Information for Jordan Ramirez," 914-046, and "Chung and Dasgupta: Information for Casey Clark," 914-047.) It can also be taught as a traditional case, without a role play, by using general information case "The Promotion Process at Chung and Dasgupta, LLP" (914-044) and "Chung and Dasgupta: Supplemental Information on Jordan Ramirez and Casey Clark" (914-045). The cases provide a rich backdrop to explore issues around firm-specific human capital, and can also be used to discuss subjective performance evaluation, best practices when giving employee feedback, and careers at professional service firms. -
WeaveTech: High Performance Change
WeaveTech, formerly Johnson-Ware, is a clothing company that produces jackets, coats, overalls, coveralls, and fire-resistant clothing for the military. A private equity firm renamed the company after it acquired Johnson-Ware several years ago. WeaveTech now faces a changing market, and its new CEO is planning to change its strategy. As part of this strategy, the CEO wants to cut the number of WeaveTech managers by 20%. He asks Frank Jennings, WeaveTeach's VP for Human Resources, to recommend how to do so. Jennings has done his best to balance these changes with the company's long history, its small-town culture, and its high-performance culture. The case presents information on the implicit lifetime employment contract, a significant change in strategic direction, and a problematic performance appraisal system. Jennings finds the decision to reduce headcount to be challenging. Is it ethical to discharge high-performing managers? Is the new strategy sound? How should Jennings respond to the managerial reduction mandate, and what should he recommend to the board?