HR CASE STUDIES

INFOSYS CASE -1

Objectives of the Case Study

The case study will be focusing on the analytical approach to understand the HR problems which
cause dissatisfaction at work and at last results in employee attrition showing the signs of low
morale, absenteeism, lesser involvement etc. The goal is to make the students understand that
how job satisfaction can be increased to reduce the high attrition in any company. The case study
also focuses on various approaches or the retention strategies that a company may execute to
stop the drain in the company’s resource to retain the good talent.

Introduction:
Infosys is a global leader in consulting, technology, and outsourcing and next-generation
services. People at Infosys enable clients, in more than 50 countries, to stay a step ahead of
emerging business trends and outperform the competition The experience gives our clients a
distinct advantage. In addition to helping them manage their business, we power their
transformation to a smarter organization as well. This allows them to focus on their core business
priorities. Their expertise spans industries. From helping build lighter and stronger passenger jets
and creating more fuel efficient smart cars, to enabling banks to provide financial inclusion to the
most remote corners of the globe and empower technology executives with solutions to
maximize global agility – Infosys delivers powerful innovations. And in doing so, Infosys
change the way the world works and lives. At Infosys, it’s more than just innovation that has
won them the confidence of their stakeholders. People believe their responsibilities also extend
beyond the boundaries of business. The Infosys Foundation provides assistance to some of the
most depressed sectors of the communities in which they work. The Infosys Science Foundation
awards the Infosys Prize to some of the most important research of their times in the sciences
and the humanities. An entrepreneurial adventure that began with seven engineers and US$250,
Infosys is now a publicly traded company driven by 169,000+ relentless innovators and revenues
of more than $8.64 billion.

History
Established in 1981, Infosys is a NYSE listed global consulting and IT services company with
more than 165,000 employees. From a capital of US$ 250, we have grown to become a US$ 8.64
billion (LTM Q3 FY15 revenues) company with a market capitalization of approximately
US$36.1 billion. In the journey of over 30 years, they have catalyzed some of the major changes
that have led to India's emergence as the global destination for software services talent. Infosys
pioneered the Global Delivery Model and became the first IT Company from India to be listedon
NASDAQ. Their employee stock options program created some of India's first salaried
millionaires.
Awards
Infosys won a leading Green energy award in 2014. We received the Gold Award for sustainable
buildings at the 2014 International Ashden Awards, which celebrate pioneering businesses and
organizations that are helping tackle climate change and transforming people’s lives. The 2014
Asian Most Admired Knowledge Enterprises (MAKE) award has been presented to Infosys.
Infosys is the only Indian company to have won the award 12 times, the first one being in the
year 2000.Once again, Infosys topped ASIAMONEY’s Corporate Governance Poll in the
‘domestic country’ category. The poll was expanded to cover Australia and Vietnam, and is the
largest ever, with 322 select analysts and investors voicing their opinions. At the Institutional
Investor 2014 All-Asia Rankings, they were honored with several awards in the IT services and
software categories. The recognitions included Best CFO and Best Investor Relations. Infosys
named a Leader in The Forrester Wave™: North American Applications Outsourcing, Q1 2014
Infosys Finacle has been rated as a ‘Best-in-Class’ provider by CEB Tower Group in its report
titled ‘Core Banking Systems for the Large Bank Market’ Infosys publishes sustainability report
as per latest GRI (G4) guidelines. Becomes first IT company globally to achieve the feat Infosys
has become the first IT company in the world to publish its sustainability report based on the
latest Global Reporting Initiative (GRI) G4 comprehensive framework. GRI is the most widely
respected sustainability reporting framework, worldwide. (Infosys sustainability Report 2013-14)
Achievements
Infosys BPO has chosen a 12,000 square feet site in the northern municipality of Aguadilla, an
aviation hub, to run its operations. The Commonwealth of Puerto Rico and the Puerto Rico
Industrial Development Company (PRIDCO) joined senior executives from Infosys BPO during
the opening ceremony of the new center. (March 09, 2015) Infosys (NYSE: INFY), a global
leader in consulting, technology, outsourcing and next generation services, today announced that
it has been honored with the coveted Daimler Supplier Award 2014 at the Mercedes-Benz Center
in Stuttgart, Germany at a ceremony attended by 450 representatives of the major suppliers and
about 200 representatives of Daimler management. (March 12, 2015)
Problem
Attrition rate at Infosys
Infosys has conceded that attrition rates at the company, which has an employee strength of over
1.6 lakh employees, has touched worrisome levels." At 18.7 per cent, compared to 16.3 per cent
for the year-ago period, this metric is at an all-time high, and has touched ―uncomfortable
levels," said the former CEO of the company. The employee attrition today was a bigger concern
for the company now. Even as high attrition rates continue to haunt Infosys, the country's
second-largest IT services firm is confident of bringing it down to 12-14% in the next two
quarters as it gets back to the growth trajectory. The Bangalore-based firm has witnessed steady
exits, especially of senior level executives, in the last one and half years. The attrition level grew
higher to 20.1% in the July-September 2014 quarter as compared to 19.5% in the April-June
2014 quarter and 17.3% in quarter last fiscal. In comparison, TCS had reported an attrition rate
of 12%, while that at Wipro (IT services) and HCL Services stood at about 16% and 15%,
respectively, in the April-June 2014 quarter (last 12 month basis). These companies are
scheduled to announce their financial results for July-September 2014 quarter later this month.
There might be various reasons attributing to this:-
1) Lack of clear career growth- Employees may leave the company, if they feel there is no career
growth. They will try better options.
2) Work Culture- If there is a culture person misfit, people would definitely quit.
3) Superior’s Attitude: Superior’s negative attitude towards subordinates make their morale
down which leads to dissatisfaction at work and altercation with their bosses could also be a
factor.
4) Lack of employee engagement programs- People also leave if they feel, if they are not treated
well by organization. Only extracting work and not respecting the employee will increase
dissatisfaction.
5) Skewed appraisal process- If the yearly appraisal process does not award the hardworking
employees with what they deserve. Then expect attrition rates to shoot.
6) Trainees are not being aligned properly according to their trained technologies which results
in lack of motivation. This is affecting big time to the careers/profiles of candidates. As a result,
those candidates look for the alternate path to leave the company at the earliest. So company gets
fail to retain the talents. Employee satisfaction goes down. Overall, it hampers the growth of the
company and productivity as well.
7) Acute Job Stress
Expectations
With Vishal Sikka as its new CEO and a team of leaders, Infosys is looking at arresting the
high attrition rate in the next few quarters.
Infosys recently announced a 100 per cent variable bonus payout to its employees for the
December quarter as the country's second largest software services firm tries to stem its high
attrition rates.
"We have made 100 per cent variable payout for Q3 and have seen a further decline in
attrition as a result of multiple initiatives taken over the last few quarters," Infosys Chief
Operating Officer UB Pravin Rao said.
 one of the main tasks before Vishal Sikka when he took over as the chief executive officer last
year was to check the high attrition levels.
The Company’s attrition (on last twelve months basis) stood at 20.4 per cent for the quarter
ended December 2014, slightly higher than 20.1 per cent registered in the July September 2014
quarter.

Corrective Measures
Infosys takes steps to stop high attrition
Employee attrition rates are worrisome and we are implementing various initiatives to retain
good talent," said Pravin Rao, COO, and Infosys.
"We have tried hard to listen to our employees. The concern was not so much about
compensation but about predictability, career growth, and variable compensation.
He said the company has done everything as scheduled in the last six-seven months. "We have
done quarterly promotions. In fact, this quarter we have promoted 7,500 people. Promotion is a
reflection of growth. Our growth created opportunities for our people to go up in the career
track," he said.
Since July last, the company has also given two wage hikes,
Apart from these, the company was in the midst of several other employee-retention measures,
including restructuring the variable pay programme, stepping up promotions, ramping up of
certification and training programmes and a fast-track process for employees, Mr. Shibulal
(Former CEO) said.
Experts’ Views
Experts said though much has been said about high attrition rate, the management has been
taking corrective measures to solve the problem. "It is important to remember that there is no
magic wand to solve issues and it can take two-three quarters before this can be normalized,"
said Sanchit Gogia, chief analyst & CEO.
Many feel the high attrition rate might come down after Vishal Sikka, who is a brand in
himself, has joined the company. "There is a renewed interest and confidence in Infosys now.
Young people look up to Sikka with a great hope said an HR expert. Living up to the
Expectations. In his first year as the chief of India's second largest IT firm, Sikka was able to
turn the company to "look much like a new-age, youthful, agile company, very different from the
traditional Indian IT services firms." However, Sikka's challenge is to inspire the company to
regain the IT bellwether status once again, a position it lost due to the lack of innovation and
growing competition in the sector.
Questions:
1. What are the reasons of job dissatisfaction which lead to the high attrition rate at Infosys
according to your opinion?
2. What are suggestions would you like to give to the company to reduce the high attrition rate?

Case Study 2
Harsha and Franklin both of them are post graduates in management under different
streams from same B-School. Both of them are close to each other from the college days itself
and the same friendship is continuing in the organization too as they are placed in the same
company, Hy-tech technology solutions. Harsha placed in HR department as employee counselor
and Franklin in Finance department as key finance executive. As per the grade is concerned both
are at same level but when responsibility is concerned Franklin is holding more responsibility
being in core finance.
By nature Harsha is friendly in nature and ready to help the needy. Franklin is silent in nature
ready to help if approached personally and always a bit egoistic in nature. They
have successfully completed 4 years in the organization. And management is very much satisfied
with both of them as they are equally talented and constant performers.
Harsha felt that now a day’s Franklin is not like as he used to be in past. She noticed
some behavioral changes with him. During general conversations she feels that Franklin is
taunting her that she is famous among the employees in the organization in the other hand he is
not even recognized by fellow employees.
One morning Mr. Mehta General Manager Hy-tech technology solutions shocked while
go through the mail received from Franklin about his resignation. Mr. Mehta called
Harsha immediately and discussed about the same as she is close to Franklin. By hearing the
news Harsha got stunned and said that she do not know this before she also revealed here
current experience with him. Mr. Mehta who do not want to lose both of them promised her that
he will handle this and he won’t allow Franklin to resign.
In the afternoon Mr. Metha took Franklin to Canteen to make him comfortable after some
general discussion he starts on the issue. Franklin, after some hesitations opened his thinking in
front of Mr. Mehta. The problem of Franklin is:-
1) When he comes alone to canteen the people from other don’t even recognize him but if he
accompanied by Harsha he get well treated by others.
2) one day both of them entered the company together the security in the gate wished them but
the next day when he came alone the same security did not do so.
3) Even in meetings held in the office the points raised by Harsha will get more value so many a
times he keeps silent in the meeting.
It happens to Franklin that he has to face such degradation in each day of work which
totally disturbs him. Franklin also questioned that” Harsha and I have same qualification, from
same institute, passed out in the same year both with first class. We have same number of
experience in this organization. More over the responsibilities with me are more valuable than
that of Harsha. After all this things if I am been ignored or unrecognized by the
fellow employees my ego does not allow me to continue here”.
By listening this statement Mr.Metha felt that it is not going to be very difficult to stop
his resignation. Mr. Mehta explained Franklin the reasons for such partial behavior of the
employees.
After listening to Mr. Mehta Franklin said sorry for his reaction and ready to take back
his resignation. And he called Harsha and spoke with like before.

Question
Find the reason that Mr. Mehta would have given to Franklin.

Case Study 3
Watson Public Ltd Company is well known for its welfare activities and employee oriented
schemes in manufacturing industry from more than ten decade. The company employs more than
800 workers and 150 administrative staff and 80 management level employees. The Top level
management views all the employees at same level. This can be clearly understood by seeing the
uniform of the company which is Same for all starting from MD to floor level workers. The
company have 2 different cafeterias at different places one near the plant for workers and other
near the Administration building. Though the place is different the amenities, infrastructure and
the food provided are of same quality. In short the company stands by the rule Employee
Equality.
The company has one registered trade union and the relationship between the union and the
management is very cordial. The company has not lost a single man day due to strike. The
company is not a pay master in that industry. The compensation policy of that company, when
compared to other similar companies, is very less still the employees don’t have many
grievances due to the other benefits provided by the company. But the company is facing
countable number of problems in supplying the materials in recent past days. Problems like
quality issues, mismatch in packing materials (placing material A in box of material B) incorrect
labeling of material, not dispatching the material on time etc…
The management views the case as there are loop holes in the system of various departments and
hand over the responsibility to HR department to solve the issue. When the HR manager goes
through the issues he realized that the issues are not relating to system but it relates to the
employees. When investigated he come to know that the reason behind the casual approach by
employees in work is
The company hired new employees for higher level post without considering the potential
internal candidates. The newly hired employees are placed with higher packages than that of
existing employees in the same cadre.
Questions:
1. Narrate the case with suitable Title for the case. Justify your title.

Case Study 4 - IKEA's Innovative Human Resource Management Practices and Work
Culture

IKEA was one of the largest furniture manufacturers and retailers in the world, with operations
in 32 countries (in early 2005). The company was well known for its stylish and innovative
designs. It was the pioneer of furniture that could be dismantled and packed flat, to allow ease of
transportation. IKEA's main strength was its committed workforce, which was often the source
of the company's innovative concepts. IKEA adopted a positive approach toward human resource
management. In the late 1990s and early 2000s, the company implemented several initiatives that
promoted 'life balance' and diversity. The case discusses the innovative human resource
management practices adopted by IKEA and describes its work culture.
Initiatives related to flexible work design, comprehensive benefits, quality of work life, and
employee training and development are outlined. The case also discusses the prominent elements
of IKEA's culture, such as diversity, openness, equality, cost consciousness, and
competitiveness.
IKEA’s vision of “creating a better everyday life for the many people” is reflected by their high
quality, well designed and functional products, in affordable prices and great variety. This
philosophy of doing things in a cost conscious and environmental friendly way is embedded in
all of their activities. The use of flat packaging and ready to assemble products, as well as the use
of product communality reduces their transportation, inventory and manufacturing costs.
However, their cost conscious approach is not just limited to that aspect; employees and
managers are encouraged to be economical as well. It all begins from the top management;
founder Ingvar Kamprad who believes in leading by example, stays in inexpensive hotels and
flies in economic class. This mindset diffuses through the organization’s pyramid to all
employees. “We do our part, you do your part” on the one hand, incorporates IKEA’s strategy of
reducing costs while adding value to their supply chain through innovation and creativity, while
on the other hand it encourages customers to get involved and be part of the IKEA family.
Organizational Culture
Connectivness and cultural embeddedness
Ingvar Kamprad has built a resilient organizational culture. The company has managed to keep
its identity in a fast moving and changing environment over the last decades. This is shown
through their strong brand image and is IKEA’s core competitive advantage. The values and
beliefs of the man behind IKEA are embedded in the strong organizational culture and behaviour
which encourages creativity, innovation, entrepreneurship and hard work between all levels of
employees. These are values that has contributed to the company’s success and sustainability.
The company makes sure that they keep on being innovative in order to be ahead of competition.
Every three years the best twenty designers of the company meet in order to design the new
product line of IKEA.
According to Simon Sinek successful companies and leaders start with “why” — it is their
purpose and belief, why the organization exists; that is not just making profits but also satisfying
customers’ needs in a customer-focused approach. In the case of IKEA, it is the ability of the
company to challenge the status quo by providing well-designed and functional products in
affordable prices. Then the cost conscious approach of “how you do it” follows and lastly they
consider “what you do”. By starting with why, IKEA not only has built a loyal relationship
between customers and their brand but they also create cultural embeddedness to a strong human
capital that is inspired, motivated and engaged in implementing IKEA’s business strategy.
Recruitment and Selection
Choosing the right people for the right job
Recruitment and selection is one of the core activities of HR planning, a dynamic procedure and
a crucial task for the company’s success. IKEA management understands the importance of
acquiring, engaging and retaining employees and customers in order to grow their business
through sustainability. Everything starts with recruiting the right people that share the same
values as the company and therefore have a good fit with the organizational culture.
Hiring should involve transparent recruitment procedures with no favouritism or nepotism. In
order for an organization to choose the right candidate and promote cultural embeddedness the
recruitment procedures should be built with this on mind.
IKEA has a policy of hiring based on values as well as on skills. The company is looking for
people with enthusiasm and togetherness, persistence and humbleness, ready to take
responsibilities and accept challenges from day one. They are all in business together and
potential employees, called co-workers in IKEA, should demonstrate that they are ethical,
creative, encourage diversity, and are willing to collaborate together to overcome everyday
challenges and problems.
Training and Development
Happy Employees = Happy Customers
After selecting the right talent for the organization’s positions, the HRM team has the
responsibility to provide training and development. This is the only way for people to grow with
the company. Training can also give more meaning in their work experience. Having happy and
satisfied employees in a safe and inspirational work place is a necessary condition in which to
also have satisfied customers; this in turn leads to organizational success.
At IKEA, training starts from day one and it involves the rotation through various areas of the
business. This provides a better understanding of the business and thus employees are able to
serve their customers more effectively.
Engagement and Retention
Ownership and Inclusive Management
Another important component of a successful HR strategy is the engagement and retention of
employees in the organization. People are the most sustainable advantage of a company and only
a strong “people machine” can bring the company forward. A good management of this
component can help to avoid costly employee’s turnover and disengagement.
Firstly, IKEA promotes work-life balance in a flexible work place where safety always comes
first. The employees’ well-being is reflected by the high results they deliver as well as by their
productivity. Acknowledgment of achievements and hard work is shown by rapid promotion,
especially to those employees who demonstrate the enthusiasm and togetherness that IKEA’s HR
philosophy is all about. An above-average pay, a generous store-bonus system that rewards
employees’ contributions to the success of a store as well as other benefits are part of IKEA’s
performance strategy. This is to keep employees satisfied and avoid any external comparisons of
IKEA’s reward system with other organizations.
Secondly, by promoting the concept of ownership, employees feel part of the business and are
more responsible for their actions and their consequences. This inclusive management engages
employees who are trying to build the company together and focus on the overall success of the
company.
Thirdly, engagement can be fostered through an effective performance and talent management
that is well linked with the strategic management of the organization. The main tool of
performance management is the performance appraisal as well as constructive feedback to
employees. A 360 degree performance evaluation can include self-evaluation, evaluation from
customers, subordinates, co-workers as well as top management. This approach helps the
employees to get a broader perspective of how they are perceived by others and allows the
managers to see how employees impact upon others in order to identify any current problems.
Finally, effectively managing poor performance is also necessary in order for the company to
have a high return on their investment to training and development.

The IKEA management way

The problem that many organizations are facing when they choose to use an international
expansion strategy is how to “sell” their culture in the new market. In fact, this is not about
exactly changing the management approach but more about adapting into the new conditions
using methods that can contribute in the desired employees’ engagement.
IKEA faced this challenge when the company entered the USA market. To overcome this
challenge, the company sent its most experienced managers to establish its global management
philosophy in the new stores there. However, the local employees had a different perspective and
approach on taking responsibilities and risks, thus the company had to show their “IKEA
management way”. This involved actively assigning responsibilities to employees, teaching them
how to be effective team players, encouraging them to be part of IKEA’s vision and be
entrepreneurial and innovative. Finding the appropriate financial rewards under the rules and the
regulations of the new market can help in engaging and keeping talented people.
A careful and respectful study of the political and cultural conditions (e.g. high power distance
society etc) along with a clear demonstration of the flat organizational structure of IKEA (similar
to their products) are approaches that IKEA has to adopt in order to successfully continue their
expansion strategy into other emerging markets as well.

Final Thoughts
Examining IKEA’s successful story of creating a sustainable business through a strong
organizational culture, lean management and constant innovation involve some great
management lessons. These lessons and approaches could be examples to follow by a current
CEO of an international corporation, a manager of a small enterprise or just an entrepreneurial
enthusiast who just founded a start-up and is looking to hire the first employees.
A strong leadership along with a shared value vision is important to create an entrepreneurial and
innovative work place where people would love to work, and develop their potential, and
ultimately grow with the organization.

Question
1. What Management Lessons IKEA’s HR Strategy can teach us?

Case Study 5 – Two Horses Rider

Hindustan Defense Equipment Suppliers Ltd. (Hadsel) is a Bangalore- based mega public sector
undertaking of the government of India, Ministry of Defense. This 50 year old giant has been
meeting the needs of Indian armed forces and had touched a turnover of Rs. 1000 crore per
annum in 1985. Unfortunately, the company had been so busy in meeting the national needs that
it never looked to overseas markets. This approach also matched the national policy of non –
proliferation of war – like activities in the land of Gandhi and Gautum Buddha. However, the
position changed with the change of the government of Delhi. This coincided with the period of
shortage of the foreign exchange in the country and the need to boost exports had become
paramount. Performance of Hadsel in this area was very poor, because its annual export earnings
had been a merge Rs. 20 lakh.
There had been a cry about the low profitability of the public sector undertakings too. It was
argued that huge funds had been invested in these undertakings many years ago and that the
government should now get some returns on those investments. Here again, Hadsel did not come
up to the expectations. A focused review of its performance showed that the company carried an
inventory of Rs. 2400 crore, i.e 29 months of turnover. Fortunately, General Manager (Materials)
retired at that time and the blame could be easily put on him. The top management realized that
two seats that required urgent attention were inventory control and augmentation of exports.
The company had a vacancy of a general manager for heading the materials management
department. It was decided that the area of responsibility of that GM could be increased to
include marketing. This would enable the company to assign the areas requiring additional
attention to a new entrant who was likely to be keen to prove his merit. The post of GM
(Materials), which had fallen vacant, was converted into General Manager (Marketing &
Material Management). A bright, highly qualified and experienced Mr Kuslam was recruited. He
was given the twin target of reducing the inventory to Rs. 2000 crore and boosting the exports to
at least Rs. 1 crore.
Mr. Kuslam soon realized that, not only did have an uphill task of achieving his targets, but he
was also going to face problems in the organization. Firstly, he was required to achieve a
reduction of the inventory while the trend in the company had been just the reverse. He was not
welcome in the company being an outsider and having frustrated the ambitions of the officers
who had been waiting to become GM. Generally, people ridiculed the very idea of half the GM
bringing down the inventory when a full GM had only been able to restrain the rate of growth of
that very inventory. Lastly, while the marketing department reported to director (production
planning), the materials management department was the baby of the director, finance. Mr.
Kuslam thus had two bosses. The riding of two horses, with the associated problems proved fatal
for Mr. Kuslam’s career, even though he met the assigned targets. The company discontinued the
twin task GM assignment with the exist of Mr. Kuslam.
Questions
1. What would you have done if you were in Mr. Kuslam’s shoes?
2. What would have been your approach if you were the Chairman and Managing Director
of Hadsel?

Case Study 6- Long Hours, Hundreds of E-Mails, and No Sleep: Does This Sound like a
Satisfying Job?
In the 1970s, futurists were predicting that increases in technology would dramatically shorten
the workweek for most people. But in the wired work world of today, where employees can
reach “the office” from wherever they are, many managers are finding it extremely difficult to
get away from their jobs. In fact, one employment firm estimated that 30 percent of professionals
take less than their allotted vacation time, and 42 percent said they have to cancel vacation plans
regularly. Consider a few examples:-
Gian Paolo Lombardo might work for a firm that manufactures luggage for luxury travel, but
he’s had pre- cious little time for vacationing himself. During his last “faux-cation” 3 years ago,
he spent most of the time in his hotel room in the resort town of Carmel, California, with his
BlackBerry, while his wife Ellen chatted with other guests, hoping he’d finally finish with work.
Ellen notes that no meal or movie goes by without her hus- band being hunched over his
smartphone. She says, “I think he needs to go into rehab.” He agrees.
Irene Tse heads the government bond-trading division at Goldman Sachs. For 10 years, she has
seen the stock market go from all-time highs to recession levels. Such fluctuations can mean
millions of dollars in either profits or losses. “There are days when you can make a lot, and other
days where you lose so much you’re just stunned by what you’ve done,” says Tse. She says she
hasn’t slept through the night in years and often wakes up several times to check the global market
status. Her average workweek? Eighty hours. “I’ve done this for 10 years, and I can count on the
fingers of one hand the number of days in my career when I didn’t want to come to work. Every
day I wake up and I can’t wait to get here.”
Tony Kurz is a managing director at Capital Alliance Partners, and he raises funds for real estate
investments. However, these are not your average proper- ties. Kurz often flies to exotic locations
such as Costa Rica and Hawaii to woo prospective clients. He travels more than 300,000 miles per
year, often sleeping on planes and coping with jet lag. Kurz is not the only one he knows with such
a hectic work schedule. His girl- friend, Avery Baker, logs around 400,000 miles a year as the
senior vice president of marketing for Tommy Hilfiger. “It’s not easy to maintain a relationship
like this,” says Kurz. But do Kurz and Baker like their jobs? You bet.
David Clark is the vice president of global marketing for MTV. His job often consists of traveling
around the globe to promote the channel as well as to keep up with the global music scene. If he
is not traveling (Clark typically logs 200,000 miles a year), a typical day consists of waking at 6:30
A.M. and immediately responding to numerous messages that have accumulated over the course
of the night. He then goes to his office, where throughout the day he responds to another 500 or so
messages from clients around the world. If he’s lucky, he gets to spend an hour a day with his son,
but then it’s back to work until he finally goes to bed around midnight. Says Clark, “There are
plenty of people who would love to have this job. They’re knocking on the door all the time. So
that’s motivating.”
Many individuals would balk at the prospect of a 60-hour or more workweek with constant
traveling and little time for anything else. Some individuals are exhila- rated by it. But the demands
of such jobs are clearly not for everyone. Many quit, with turnover levels at 55 percent for
consultants and 30 percent for investment bankers, ac- cording to Vault.com. However, clearly
such jobs, while time-consuming and often stressful, can be satisfying to some individuals.
Questions
1. Do you think only certain individuals are attracted to these types of jobs, or is it the
characteristics of the jobs themselves that are satisfying?
2. What characteristics of these jobs might contribute to increased levels of job satisfaction?
3. Given that the four individuals we just read about tend to be satisfied with their jobs, how might
this satisfaction relate to their job performance, citizenship behavior, and turnover?
4. Recall David Clark’s statement that “There are plenty of people who would love to have this
job. They’re knocking on the door all the time.” How might Clark’s perceptions that he has a job
many others desire contribute to his job satisfaction?

Case Study -7 Bonuses Can Backfire

It might seem obvious that people will be motivated by bonuses, but many scholars question this
premise. Alfie Kohn has long suggested that workers are “punished by rewards” and urges that
organizations avoid tying rewards to performance because of the negative consequences that can
result. As an alternative to rewards, some experts recommend that managers foster a positive,
upbeat work environment in hopes that enthusiasm will translate into motivation.
Although rewards can be motivating, they can reduce employees’ intrinsic interest in the tasks
they are doing. Along these lines, Mark Lepper of Stanford University found that children
rewarded for drawing with felt-tip pens no longer wished to use the pens at all when rewards
were removed, whereas children who were not rewarded for using the pens were eager to use
them. Similar experiments in which children completed puzzles have also shown that increasing
rewards can decrease interest in the rewarded task. Some have questioned the extent to which
these results generalize to working adults, but concern about rewards diminishing intrinsic
motivation persists.
Rewards can also lead to misbehavior by workers. Psychologist Edward Deci notes, “Once you
start making people’s rewards dependent on outcomes rather than behaviors, the evidence is
people will take the shortest route to those outcomes.” Consider factory workers paid purely
based on the number of units they produce. Because only quantity is rewarded, workers may
neglect quality. Executives rewarded strictly on the basis of quarterly stock price will tend to
ignore the long-term profitability and survival of the firm; they might even engage in illegal or
unethical behavior to increase their compensation. A review of research on pay-for-performance
in medicine found that doctors who were rewarded for treatment out- comes were reluctant to
take on the most serious cases, where success was less likely.
Although there might be some problems with providing incentives, the great majority of research
cited in this and the previous chapter shows that individuals given rewards for behavior will be
more likely to engage in the rewarded behaviors. It is also unlikely that individuals engaged in
very boring, repetitive tasks will lose their intrinsic motivation if the task is rewarded, because
they never had any intrinsic motivation to begin with. The real issue for man- agers is finding an
appropriate way to reward behaviors so desired behavior is increased while less-desired behavior
is reduced.

Questions
1. Do you think that, as a manager, you would use bonuses regularly? Why or why not?
2. Can you think of a time in your own life when being evaluated and rewarded on a specific
goal lead you to engage in negative or unproductive behavior?
3. Do you think providing group bonuses instead of individual bonuses would be more
effective or less effective? Why or why not?
4. How would you design a bonus/reward program to avoid the problems mentioned in this
case?

Case Study 8 - Why Don’t Teams Work Like They’re Supposed to?
Despite years of promises that teamwork will serve as a cure-all for the problems of business,
many managers have found that even teams with highly motivated, skilled, and committed
members can fail to achieve the expected results. Professor Richard Hackman from Harvard
University has been studying teams for years and believes that more often than not, failing to
establish the groundwork for effective team performance leads teams to be less effective than if
the leader simply divided up tasks and had each individual work on his or her assigned part. As
Hackman notes, “I have no question that a team can generate magic. But don’t count on it.”
What are the main factors Hackman has identified that lead to effective teams? Teams should be
kept small and have consistent membership to minimize the types of co- ordination tasks that
take up valuable time. Too often, organizations set up project-based teams and then recon- figure
them, without considering the stages of group development that might have to occur before the
team can achieve full performance. Supports need to be in place, like group-based rewards and
clearly defined group responsibilities. Surprisingly, in his study of 120 senior management
teams, Hackman found fewer than 10 percent of members agreed about who was even on the
team!
Successful teams also have assertive, courageous leaders who can invoke authority even when
the team resists direction. Similar lessons were derived from the failure of Ghana Airways, a
state-run organization that experienced frequent changes in top management that were disruptive
to establishing a consistent leadership team. As a result of excessive turbulence and lack of
strategic vision, the 40-year-old air carrier that was once an emblem for the country went
bankrupt.
Do these weaknesses mean teams are never the answer to a business problem? Obviously, it is
often necessary to bring together and coordinate individuals with a diverse set of skills and
abilities to solve a problem. It would be impossible for all the management tasks of a complex
organization like Ghana Airways to be done by disconnected individuals. And often there is
more work to be done in a compressed time period than any one individual can possibly
accomplish. In these cases, it is wise to consider how to best heed the advice provided above and
ensure your team isn’t less than the sum of its parts.
Questions:
1. What do you think of the elements of successful teamwork Hackman has identified?
Do you believe these elements are necessary for effective team performance?
2. Can you think of other conditions necessary for teams to be effective?
3. Imagine you’ve been asked to assemble and lead a team of high-potential new hires to
work on the development of an international marketing campaign. What specific steps
might you take early in the team’s life to ensure that the new team is able to avoid
some of the problems Hackman identified? Is there any way to break down the overall
group goal into subtasks so individual accountability can be enhanced?

Case Study 9: Multicultural Multinational Teams at IBM

When many people think of a traditional, established company, they think of IBM. IBM has been
famous for its written and unwritten rules—such as its no-layoff policy, its focus on individual
promotions and achievement, the expectation of lifetime service at the company, and its
requirement of suits and white shirts at work. The firm was one of the mainstays of the “man in a
gray flannel suit” corporate culture in the United States.
Times have certainly changed.
IBM has clients in 170 countries and now does two-thirds of its business outside the United
States. As a result, it has overturned virtually all aspects of its old culture. One relatively new
focus is on teamwork. While IBM uses work teams extensively, like almost all large
organizations, the way it does so is unique.
To foster appreciation of a variety of cultures and open up emerging markets, IBM sends
hundreds of its employees to month-long volunteer project teams in regions of the world where
most big companies don’t do business. Al Chakra, a software development manager located in
Raleigh, North Carolina, was sent to join Green Forest, a furniture manufacturing team in
Timisoara, Romania. With Chakra were IBM employees from five other countries. Together, the
team helped Green Forest become more computer-savvy to increase its business. In return for the
IBM team’s assistance, Green Forest was charged nothing.
This is hardly altruism at work. IBM firmly believes these multicultural, multinational teams are
good investments. First, they help lay the groundwork for uncovering business in emerging
economies, many of which might be expected to enjoy greater future growth than mature
markets. Stanley Litow, the IBM VP who oversees the program, also thinks it helps IBMers
develop multicultural team skills and an appreciation of local markets. He notes, “We want to
build a leadership cadre that learns about these places and also learns to exchange their di- verse
backgrounds and skills.” Among the countries where IBM has sent its multicultural teams are
Turkey, Tanzania, Vietnam, Ghana, and the Philippines.
As for Chakra, he was thrilled to be selected for the team. “I felt like I won the lottery,” he said.
He advised Green Forest on how to become a paperless company in 3 years and recommended
computer systems to boost productivity and increase exports to Western Europe.
Another team member, Bronwyn Grantham, an Australian who works at IBM in London,
advised Green Forest about sales strategies. Describing her team experience, Grantham said,
“I’ve never worked so closely with a team of IBMers from such a wide range of competencies.”

Questions:
1. If you calculate the person-hours devoted to IBM’s team projects, they amount to more than
180,000 hours of management time each year. Do you think this is a wise investment of
IBM’s human resources? Why or why not?
2. Why do you think IBM’s culture changed from formal, stable, and individualistic to
informal, impermanent, and team-oriented?
3. Would you like to work on one of IBM’s multicultural, multinational project teams? Why
or why not?
4. Multicultural project teams often face problems with communication, expectations, and
values. How do you think some of these challenges can be overcome?

Case 10:- Using Social Media to Your Advantage

As you know, social media have transformed the way we interact. The transparent, rapid-fire
communication they make possible means people can spread information about companies more
rapidly than ever.
Do organizations understand yet how to use social media effectively? Perhaps not. As recently as
2010, only 19 of the top 50 chief executives in the world had Facebook accounts, only 6 had
LinkedIn pages, and only 2 regularly used Twitter or blogs to communicate. Many executives are
wary of these new technologies because they cannot always control the outcomes of their
communications. However, whether they are directly involved with social media or not,
companies should recognize that these messages are out there, so it behooves them to make their
voices heard. And social media can be an important way to learn about emerging trends. André
Schneider, chief operating officer of the World Economic Forum, uses feedback from LinkedIn
discussion groups and Facebook friends to discover emerging trends and issues worldwide.
Padmasree Warrior, chief technology officer of Cisco, has used social media to refine her
presentations before a “test” audience.
The first step in developing a social media strategy is establishing a brand for your
communications—define what you want your social media presence to express. Experts
recommend that companies begin their social media strategy by leveraging their internal
corporate networks to test their strategy in a medium that’s easier to control. Most companies
already have the technology to use social media through their corporate Web sites. Begin by
using these platforms for communicating with employees and facilitating social networks for
general information sharing.
As social networking expert Soumitra Dutta from Insead notes, “My advice is to build your
audience slowly and be selective about your contacts.”
Despite the potential advantages, companies also need to be aware of significant drawbacks to
social media. First, it’s very difficult to control social media communications. Microsoft found
this out when the professional blogger it hired spent more time promoting himself than getting
positive information out about the company. Second, important intellectual capital might leak
out. Companies need to establish very clear policies and procedures to ensure that sensitive
information about ongoing corporate strategies is not disseminated via so- cial media. Finally,
managers should maintain motivation and interest beyond their initial forays into social media. A
site that’s rarely updated can send a very negative message about the organization’s level of
engagement with the world.

Questions:
1. Do you think organizations need to have a social media presence today? Are the
drawbacks sufficient to make you think it’s better for them to avoid certain media?
2. What features would you look for in a social media outlet? What types of information
would you avoid making part of your social media strategy?
3. Which social media sources do you think are most useful for organizations to send
communications to external stakeholders, like stockholders or custom- ers? Are different
social media more appropriate for communicating with employees?
4. What do you think is the future direction of social media? How might emerging
technologies change them?