In the aftermath of the worst earthquake in Haiti in two centuries, relief agencies are desperately racing against time to assist those that need help. However, veteran relief workers characterize the situation as “especially complicated” because all key influence factors have been affected by the disaster. There is no working government. There are no communications. The main ocean port is damaged and unusable. The airport has limited capacity and no fuel. Relief workers and supplies are queuing up with no way to make them available to the people that need them most. This case is rich with opportunities for discussing a number of management topics, but the focus here will be on decision making. Be advised that images and video associated with the stories are graphic.

QUESTIONS:

1. Consider the scope and magnitude of the problems in Haiti. What type of thinking is needed to solve these problems? While one form stands out, can you argue for all three types (i.e., systematic, intuitive, multidimensional)?
2. Describe the structured and unstructured aspects of this problem. What type of managerial decision should be made here? Does the fact that the problems stem from an earthquake, of which there have been many in the past, make decision making easier?
3. Given what has been said about the general state of Haiti, what kind of decision environment exists? Beyond short-term relief efforts, how will this environment affect the Haiti government as it tries to rebuild the country?

SOURCES: N. King, “Aid Efforts Face Obstacles in Quake-Ravaged Capital,” Wall Street Journal (Retrievable online at http://online.wsj.com/article/SB10001424052748704363504575003351571629776.html?mod=WSJ_hpp_MIDDLETopStories)

See also C. Forelle & J. de Cordoba, “Haitian Rescue Stymied Amid Chaos,” Wall Street Journal (Retrievable online at http://online.wsj.com/article/SB10001424052748704281204575003482938279218.html?mod=WSJ_hpp_LEFTTopStories)

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As the new year dawns, two leaders – President Barack Obama and USC Football Coach Pete Carroll – are characterized as failing to fully meet their objectives. President Obama is being criticized for security breaches in the wake of an attempted airline bombing. His handling of the economy and the health-care bill are also being questioned. USC football is coming off a mediocre season (by school standards). Pete Carroll’s team won the Emerald Bowl and finished 9-4, the worst record since Carroll’s first year as head coach. While Obama’s popularity seems to be fading, Carroll’s is on the rise. The Seattle Seahawks courted, then hired, the coach to take over a professional program that languished the past two seasons. Examine the two leaders and draw some conclusions about the difference in reactions.

QUESTIONS:

1. Based on the information provided in the articles, identify each leader’s basic leadership style (note: the limited information provided in the articles is really not sufficient to make this determination). Do stylistic differences matter in terms of how others respond to what the leader is doing?
2. Consider Figure 16.6. What does the figure suggest about the relationship between leadership style and leader effectiveness? What other factors influence a leader’s effectiveness? Identify specific factors that might relate to both Barack Obama and Pete Carroll.
3. How do the special qualities of transformational leadership relate to President Obama and Coach Carroll and how they are currently being perceived as leaders?

SOURCES: J. Weisman, “Report Raises Pressure on Obama to Focus on Jobs,” Wall Street Journal (Retrievable online at http://online.wsj.com/article/SB126298709380022037.html?mod=WSJ_hps_LEFTWhatsNews)

See also D. Everson & R. Albergotti, “USC Coach Pete Carroll Close to Deal to Join Seattle Seahawks,” Wall Street Journal (Retrievable online at http://online.wsj.com/article/SB10001424052748703481004574647232293623844.html?mod=WSJ_hps_MIDDLEFifthNews)

In what is now widely and infamously known for the near collapse of the financial sector in the United States, the Federal Reserve ignored warning signs associated with massive sub-prime lending for nearly two years. In the wake of this disaster, the Fed had to make decisions about what banks to save with an infusion of cash, what banks to save by negotiating sales to other banks, and what banks would fail. Despite these failures, Fed management contends the agency is the best choice for continued oversight of the nation’s banking system (with a little tweaking). Some lawmakers are not so sure.

QUESTIONS:

1. There can be no question that the Federal Reserve’s actions (or lack thereof) are consistent with behavioral decision making. What cognitive limitations kept the Fed from making good decisions? Consider the Fed’s response to the crisis. Is there any evidence of satisficing?
2. Which of the three heuristics most likely influenced Fed decision making? Why?
3. Escalation of commitment is evident at several points in this story. Pick one and identify the factors that led to escalating commitment. What would you do to ensure no further escalation occurs?

SOURCE: B. Appelbaum & D. Cho, “Fed’s Approach to Regulation Left Banks Exposed to Crisis,” Washington Post (Retrievable online at http://www.washingtonpost.com/wp-dyn/content/article/2009/12/20/AR2009122002580.html?hpid=topnews)

Payam Tabibian has been on the run all his life. After fleeing Iran with his family more than 25 years ago, the entrepreneur has been moving from one small business to the next throughout his business career. Tabibian worked in fast-food chains throughout school and is now developing his own hamburger chain using knowledge gained from a variety of restaurant experiences.

QUESTIONS:

1. In what ways does Payam Tabibian fit the profile of an entrepreneur? What personality traits and characteristics does he possess that are consistent with those of successful entrepreneurs?
2. Do Tabibian’s ventures represent necessity-based entrepreneurship? Why or why not?
3. The article describes Tabibian’s frequent entry into and exit from successful small businesses. Looking at the life cycles of entrepreneurial firms, what explanation(s) could you offer for this pattern of behavior?

SOURCE: T. Heath, “Burgers to Go, With Ambition on the Side,” Washington Post (Retrievable online at http://www.washingtonpost.com/wp-dyn/content/article/2009/12/06/AR2009120602107.html)

Hailed as country music’s top recording duo for nearly two decades, Brooks & Dunn are ending their collaboration after a 2010 farewell tour. Coming together was the brainchild of Arista accountant Tim DuBois. The singers’ styles and personalities are quite different and, ultimately, these differences helped them know when it was time to end the partnership. The two leave on good terms and some industry experts predict that they will reunite in years to come.

QUESTIONS:

1. Look at the definitions for team and teamwork. In what ways do Brooks & Dunn meet these definitions?
2. Consider how the duo of Brooks & Dunn moved through the stages of team development. Why does the adjourning stage matter and how are Brooks & Dunn handling this?
3. How has cohesiveness influenced the team’s success and impending dissolution?

SOURCE: B. Mansfield, “You Can Call Brooks & Dunn Done & Done After Final Tour,” USA Today (Retrievable online at http://www.usatoday.com/life/music/news/2009-12-04-brooksdunn04_CV_N.htm)

Under the leadership of CEO Mark Parker, Nike is revamping its image and shifting its focus. Rather than ride its dominance in the athletic shoe market, Parker is following trends and repositioning Nike to capitalize on the digital age. Part of Parker’s strategy for Nike involves reducing staff and moving away from brand image. The use of celebrity endorsers continues, but Nike is being much more selective. These strategies are working. While the industry experienced a downturn in 2008, Nike’s market share increased slightly.

QUESTIONS:

1. What model of change leadership is Nike utilizing? How does CEO Mark Parker fit into this strategy?
2. Look at the organizational change pyramid. Where is Nike’s planned change? Is the change incremental or transformational? Why?
3. Consider the shift from the Phil Knight way to the Mark Parker way. What are the targets for change?

SOURCE: B. Horovitz, “CEO Mark Parker Works on Keeping Nike Cool,” USA Today (Retrievable online at http://www.usatoday.com/money/industries/retail/2009-12-07-nike07_CV_N.htm)

By the narrowest of margins, the U.S. Senate voted to bring President Obama’s health care reform bill to the floor for debate. The 60-39 vote ensures there will be no filibuster, but does not guarantee that the bill will pass. Key Democrats that voted to move the bill forward express serious reservations about the way the bill is currently crafted. Few believe the bill will pass in its current form.

QUESTIONS:

1. The health care reform debate has been quite divisive. What conflict management approaches could be applied and how effective might they be? When two sides disagree, we often hear calls for compromise. What are the drawbacks to this conflict management style?
2. Evaluate the handling of this debate in terms of the three criteria of effective negotiation.
3. When Senate majority leader Harry Reid negotiated to get Senators Mary Landrieu and Blanche Lincoln to vote in favor of moving the bill forward was it distributive or integrative negotiation?

SOURCE: J. Fritze, “Negotiations Begin Anew Over Health Bill,” USA Today (Retrievable online at http://www.usatoday.com/news/washington/2009-11-22-health-negotiations_N.htm)

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Toledo-based Lott Industries employs developmentally-disabled workers to perform light assembly work. Most of their contracts are with the automotive industry. Lott workers excel, allowing employees to earn good incomes to support themselves and, sometimes, other family members. In fact, Lott was awarded the prestigious Q1 status (highest quality rating) by Ford. While the slumping economy has hurt the company, workers remain confident in their abilities and highly motivated.

QUESTIONS:

1. The jobs at Lott Industries fall under what basic job design approach? Typically, how motivating are these kinds of jobs? Why do Lott workers excel?
2. Why are Lott workers so motivated (consider Robert Ertle’s insistence on going back to work right after surgeries)? Use Self-Efficacy Theory to explain how Lott Industries’ approach produces highly motivated workers.
3. Would you utilize the Job Characteristics Model at Lott Industries? Why or why not?

SOURCE: C. Ansberry, “Haven for Disabled Workers Feels Job Market’s Sting,” Wall Street Journal (Retrievable online at http://online.wsj.com/article/SB125918205048464519.html)