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Does This Company Need a Union? (Commentary for HBR Case Study)
No doubt about it, the top managers in this fictitious case study agree, Wellington Associates is a great place to work. Analysts at the high-tech consulting firm enjoy some of the best pay in the industry. And their benefits are extensive: flextime, liberal educational opportunities, comprehensive medical and dental coverage, generous vacation leave, and even on-site day care. So it came as something of a shock to CEO Jane Wellington and her top executives when HR chief Elvin Cusack started out the weekly senior-management meeting by declaring that the United Office Workers Union had begun organizing the support staff. Turns out, Cusack explained, that the company looks very different from the support staff's point of view. Although their starting salaries are indeed competitive, raises average a mere 2% to 3%, and promotions to professional ranks are rare. Medical and dental coverage take a greater chunk out of clerical pay than out of the larger professional salaries, and the cost of the day care center is pretty much out of reach for the support staff. Flextime is impractical for workers who need to be in the office to answer phones and to file papers. Worse, the support staff is expected to accommodate the analysts' flexible schedules; if an analyst decides to work late to finish a project, the secretary has to stay as well. What to do? Suggestions ranged from "fire 'em" to "say nothing before calling in legal counsel." In 98311 and 98311Z, Susan Schurman, Marick F. Masters, Robert S. Atkin, Jacqueline M. Blanchard, and Fern Feil examine Wellington's options and its legal obligations. -
Cypress Semiconductors (A): Vision, Values, and Killer Software
How does a firm in a high-tech industry compete when both innovation and cost effectiveness are critical? T.J. Rodgers, founder and CEO of Cypress Semiconductor, has developed a unique human resources system that attempts to do both. Describes the elements of this system and raises a series of questions about how aligned the HR system is with the business strategy. Also illustrates the role of formal and social control (culture) in stimulating innovation and change. -
Cypress Semiconductors (B): Vision, Values, But No Killer Software
Supplements the (A) case. -
HCM Beverage Co.
Mark Johnson, general manager of HCM Beverage Co., must decide what to do about the declining performance of Vietnam-based HCM Beverage. Employees seem unmotivated and lackadaisical about their work. These same workers blame the weather for the poor results. Figuring out the problem and solution is Johnson's major challenge. -
Why Doesn't This HR Department Get Any Respect?
This fictitious case outlines the dilemma faced by Luke Robinson, the new head of human resources at Loft Securities, a financial services firm. Robinson took the job because he thought it would be a rewarding challenge: Loft Securities needed someone to expand the role of the human resources department from being purely administrative to having significant input in recruiting, development, and strategic planning. The problem is, despite his best efforts, the firm's senior management team just won't let HR break out of its administrative mold. Robinson must decide: Should he hang up his hat, or is there a way to help the company understand just how--and how much--HR can contribute? Five commentators on this fictional case study explain why he should avoid quitting and how he can help his department earn new respect. The author, Robert Galford, consults with senior managers on performance, organizational, and career issues and teaches executive education at Columbia University's Graduate School of Business in New York City and at Northwestern University's J.L. Kellogg Graduate School of Management in Evanston, Illinois. -
New Mandate for Human Resources
Mention "human resources" and most line and operating managers groan. Simply put, HR has a reputation for inefficiency and incompetence. But a new and transforming era for HR has arrived, asserts Dave Ulrich, a professor at University of Michigan's school of business. The challenges of today's competitive environment mean that HR must refocus its work away from activities that sap value from the organization and instead focus its efforts on achieving outcomes that improve company performance. Ulrich says HR's radical reinvention must be led by senior managers. -
SAS Institute: A Different Approach to Incentives and People Management Practices in the Software Industry
The SAS Institute is a large, growing software company headquartered in the Research Triangle in North Carolina. Founded more than 25 years ago, it has evolved a unique approach, given its industry, to developing and retaining talent including using no stock options or phantom stock and not paying its salespeople on commission. The CEO and Vice President of Human Resources must decide how well their current management practices will continue to serve them as the company gains greater visibility and faces an increasingly competitive labor market. -
Fresh Choice Co.: Acquiring and Transferring Knowledge
Fresh Choice, a restaurant in the throes of recovering from substantial financial difficulties, had borrowed ideas on things ranging from restaurant design to recipes from a competitor. That competitor had itself been started as an imitator of the Fresh Choice salad-buffet concept, indicating that there was transfer of practices and knowledge when the firms were competitors. But once Fresh Choice acquired the other firm, in an effort to acquire its intellectual capital as well as some excellent locations, the transfer of knowledge inside the firm occurred with more difficulty. The questions facing Fresh Choice senior management at this point are as follows: What can they learn from the events that have transpired after the acquisition? What might have they done differently? Why did the problems arise? And, most importantly, what might they do differently in the future to realize more of the benefits of acquisitions and mergers? -
Vaccines for the Developing World: The Challenge to Justify Tiered Pricing
This microeconomics case examines the pricing issues related to the sale of inexpensive vaccines for use in developing countries. The case describe the historic success of the United Nations' so-called "tiered pricing" policy. This policy had allowed the World Health Organization to purchase large volumes of vaccines at the marginal price of vaccine production-often just a few cents per dose-while developed nations paid the full average cost-often many times more. Changing political circumstances and the cost structure of new vaccines threaten the decades-old arrangement, however. HKS Case Number 1450.0 -
Vaccines for the Developing World: The Challenge to Justify Tiered Pricing (Sequel)
This microeconomics case examines the pricing issues related to the sale of inexpensive vaccines for use in developing countries. The case describe the historic success of the United Nations' so-called "tiered pricing" policy. This policy had allowed the World Health Organization to purchase large volumes of vaccines at the marginal price of vaccine production-often just a few cents per dose-while developed nations paid the full average cost-often many times more. Changing political circumstances and the cost structure of new vaccines threaten the decades-old arrangement, however. HKS Case Number 1450.0 -
Is There a Best Way to Build a Car?
Lean production, which has succeeded in both improving quality and lowering costs, has become the competitive standard for automakers worldwide. But a debate continues over how that system treats workers--a debate that concerns not only economics and engineering but also values and ideology. In this article, Michael Maccoby, a consultant based in Washington D.C. who specializes in organizational culture and leadership, reviews two books on General Motors' factories: Farewell to the Factory: Autoworkers in the Late Twentieth Century, by Ruth Milkman; and Just Another Car Factory? Lean Production and Its Discontents, By James Rinehart, Christopher Huxley, and David Robertson. Maccoby argues that companies can raise worker morale and productivity by showing workers true respect and by educating them in business perspective. General Motors may have failed to accomplish this at its Linden, New Jersey and Ingersoll, Ontario plants, but lean production has succeeded at Saturn and NUMMI. As more industries switch to lean production, workers will come under more pressure but companies will also have new opportunities to win their commitment to business goals. Car factories perform much better when workers understand the business and join in the effort to improve it. -
Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy
Describes the process of transforming a recently formed division of Hewlett-Packard. -
Hewlett-Packard's Santa Rosa Systems Division (A1): The Profiling Process and Creation of the Future Model
Supplements the (A) case. -
Hewlett-Packard's Santa Rosa Systems Division (A2): Response to the Employee Task Force
Supplements the (A) case. -
Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization
Supplements the (A) case. -
Hewlett-Packard's Santa Rosa Systems Division (A4): Progress on a Journey
Supplements the (A) case. -
Hewlett-Packard's Santa Rosa Systems Division (B): The Second Profiling Iteration
Describes the process of transforming a recently formed division of Hewlett-Packard. -
Hewlett-Packard's Santa Rosa Systems Division (B1): The Top Team Assessment
Supplements the (B) case. -
Hewlett-Packard's Santa Rosa Systems Division (B2): The Action Plans
Supplements the (B) case. -
Hewlett-Packard's Santa Rosa Systems Division (B3): Assessing Organizational Fitness Profiling
Supplements the (B) case.