Short Case Scenario 8-1

question 167

Essay

Short Case Scenario 8-1
Bridget Jones has been the manager of the research office at her company for over a year. She is beginning to wonder if she will ever be comfortable in this role. Her employees seem dissatisfied and are not working their hardest. Bridget leaves work most days feeling that there must be a better way to manage.
Remembering the lessons of the Hawthorne studies, Bridget works hard to praise her employees regularly. The work that her employees do is relatively interesting and there are considerable opportunities for advancement and growth. Bridget holds regular staff meetings to get input from her employees before making decisions. In spite of these efforts, Bridget's employees seem to be dissatisfied.
At the company's annual meeting, she runs into Cliff Richards, her predecessor in the job. She shares her frustrations and asks him for advice. Cliff says, "Management is simple-people are naturally lazy and uncooperative. To make them productive, they must be punished for negative behavior and rewarded when they work hard." Bridget finds this hard to accept, but replies with "Thanks for the advice, Cliff. I'll think about what you've said."
-How might the use of participative management and empowerment change the situation?

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Definitions:

Noncontrolling Interest

Represents the portion of equity in a subsidiary not attributable, directly or indirectly, to the parent company.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, typically with fixed dividends.

Variable Interest Entities (VIEs)

Entities in which an investor holds a controlling interest that is not based on a majority of voting rights, requiring special accounting treatment under financial reporting standards.

Voting Stock

Shares that give the shareholder the right to vote on important company decisions, essentially similar to voting common stock but may include different classes of stock.