A huge international oil company is considering its strategy in the Arctic Sea. The UK government has announced that a new drilling site in the Arctic Sea will be offered for sale on a competitive tender basis, the site going to the company making the highest bid. Temporary exploration of the site indicates that, over its life, it can be expected to generate revenue of around £1500 million if the oil reserves turn out to be high, but only £500 million if they turn out to be low. Seismic tests have indicated that the probability of high reserves is 0.60.

If the company is successful in its bid, it will also have to decide whether to construct a new oil rig for the site or to move an existing oil rig which is currently operating at an uneconomic site. The costs of the new rig are around £250 million and for moving the existing rig around £100 million. A new rig would be able to boost production by £150 million if reserve levels turned out to be high. The company has decided that if it is to bid for the site, the maximum bid it can afford at present, because of its cash flow situation, is £750 million. In the past, 70 per cent of the company’s bids for such sites have been successful.

However, the company is also under pressure to refurbish some of its existing rigs for both efficiency and safety reasons. The £750 million could be used for this purpose instead. If the money is used for refurbishment, there is a 50 per cent chance of increasing efficiency to generate a return on the £750 million of 5 per cent, and a 50 per cent chance of generating a return of 10 per cent. If the decision to refurbish takes place after the bid has been made and failed, only £500 million will be available.

(a) Construct a decision tree for this problem.

(b) Using the decision tree, suggest a suitable decision for management.

(c) Determine the value of perfect information about the size of the reserves on the new site.

1 Recruitment and selection are the first components of an HRM system.

A) True

B) False

2 Developing a pool of qualified applicants for a specific job opening is called selection.

A) True

B) False

3 Training tends to be used more often at the higher management levels of the organization, while development is used more often at the lower management levels of the organization.

A) True

B) False

4 Performance appraisal typically takes place before performance feedback.

A) True

B) False

5 Labor unions exist to represent the interests of workers to a company's management.

A) True

B) False

6 Which of the following is a component of an HRM system?

A) Training

B) Performance appraisal

C) Labor relations

D) All of these

7 The set of activities that managers engage in to forecast their current and future HR needs is called:

A) HR planning.

B) job specification.

C) selection.

D) training.

8 A(n) _________ is an experienced manager who provides advice and guidance to a less experienced manager who is called a(n) ________.

A) protégé; mentor

B) RIP; HRM

C) mentor; protégé

D) selector; recipient

9 Trait appraisals assess what a worker ______ , while behavior appraisals assess what a worker ________ .

A) does; is like

B) thinks; acts

C) acts; thinks

D) is like; does

10 When an organization's compensation incentives are compared to those of other organizations in the same industry that employ similar kinds of workers, this is a study of the organization's:

A) cafeteria-style benefit plan.

B) recruitment.

C) pay level.

D) behavior appraisal.

Offer an example of where strategic foresight has made a difference to the way an organization positions itself. What can we learn from the example you offer?

2. Share a significant change you have been involved with. What worked, what didn’t work, and what did the change lead to? (The change you use can have a positive or negative outcome).

Consider the following problem faced by a Dietician:

A diet needs to be created that contains not less than 1713 calories, not more than 52 grams of protein, not less than 18 grams of carbohydrates and not less than 14 grams of fat. Also, the diet should have minimal cost. In addition the diet should include at least 1.9 Units of fish and at least 1cup of milk.

The diet will consist of the six different foods: Bread, Milk, Cheese, Fish, Potato and Yogurt. The following table lists the cost per unit of each item and the number of grams of protein, fat, and carbohydrates per unit as well as the calories that will be supplied by each food unit.

Find a diet that meets the requirements above while keeping the cost at an absolute minimum. Make sure that your Food Units are all Integers.

Minimum Cost =

(Cents) Hint: Min Cost value is between 264 and 282

Number of Units of Each Item … Make sure your answers are INTEGERS


Bread =

Milk=

Cheese=

Potato=

Fish=

Yogurt=

What are your thoughts about embarking on clear digital transformation and achieving greater benefits in the future in Canada? Do you foresee new barriers?

Hartman Company is trying to determine how much of each of two products should be produced over the coming planning period. The only serious constraints involve labor availability in three departments. Shown below is information concerning labor availability, labor utilization, overtime, and product profitability.

If all production is done in a standard workweek, then Profit per Unit includes the cost to pay for the workforce. But, if overtime is needed in each department, then the Profit Function needs to be reduced by the Cost per Hour of Overtime in Each Department multiplied by the Number of Overtime Hours Used in Each Department. For example, if we used 5 hours of Overtime in Department A, we would need to Subtract $22*5 from our Profit equation.


Setup and Solve the Linear Programming Problem and determine the number of units of Product 1 and Product 2 to produce to Maximize Profit. Add an Additional Constraint to your LP to make sure that ALL of the Variables are INTEGERS


Hint: You will need 5 Decision Variables, 2 of them to determine the production quantities, and 3 of them to determine how much overtime to use in each of the departments.

Max Profit = $

(Do Not Use Commas) Hint: Max Profit is Between $3169 and $3569
Number of Units of Product 1 to Produce =

Number of Units of Product 2 to Produce =

Overtime in Department A =

Overtime in Department B =

Overtime in Department C =

(hours)

1-The process of taking the ratio between the known market size of a product and an economic indicator such as personal income in one country, and applying that ratio to another country's personal income statistic assists in determining the market potential is known as Group of answer choices

estimation by cluster analysis.

multiple factor estimator.

estimation by analogy.

trend analysis estimator.

2-The research technique to estimate product adoption rates using factors such as lifestyle or cosmopolitanism is known as: Group of answer choices microeconomic segmentation clustering.

lifestyle data analysis.

product diffusion patterns.

cross-sectional

regression analysis.

Samsung manufactures cellphone with an average standby time of 10 hours between charges. The standby time of the cellphone is normally distributed. During the design stage, the quality engineering staff recorded 18 observations of the standby time of the cellphone. Using the observations below, is there evidence that the average standby time of a Samsung cellphones is not 10 hours? Use a level of significance of .05

Observation

Answer the following question:

1. What is the null and alternative hypothesis to the case above?
2. Copy the data into excel and do an analysis to test the hypothesis
3. What is the conclusion of your analysis? (try to state it in terms of the original problem or question)

STRESS AND INDIVIDUAL BEHAVIOR Another important element of behavior in organizations is stress—an individual’s response to a strong stimulus called a stressor.30 Stress generally follows a cycle referred to as the General Adaptation Syndrome (GAS),31 shown in Figure 9.4. According to this view, when an individual first encounters a stressor, the GAS is initiated, and stage 1, alarm, is activated. He may feel panic, wonder how to cope, and feel helpless. For example, suppose a manager is told to prepare a detailed evaluation of a plan by his firm to buy one of its competitors. His first reaction may be, “How will I ever get this done by tomorrow?”

Causes of Work Stress There are several causes of work stress in organizations. Four general sets of organizational stressors are task demands, physical demands, role demands, and interpersonal demands. Causes and Consequences of Stress Stress is obviously not a simple phenomenon. As listed in Figure 9.5, several different things can cause stress. Note that this list includes only work-related conditions. We should keep in mind that stress can also be the result of personal circumstances.33 Causes of Stress Work-related stressors fall into one of four categories—task, physical, role, and interpersonal demands. Task demands are associated with the task itself. Some occupations are inherently more stressful than others. Having to make fast decisions, decisions with less than complete information, or decisions that have relatively serious consequences are some of the things that can make some jobs stressful. The jobs of surgeon, airline pilot, and stockbroker are relatively more stressful than the jobs of general practitioner, baggage handler, and office receptionist. Although a general practi- tioner makes important decisions, he is also likely to have time to make a considered diagnosis and fully explore a number of different treatments. But, during surgery, the surgeon must make decisions quickly while realizing that the wrong one may endanger her patient’s life. Physical demands are stressors associated with the job setting. Working outdoors in extremely hot or cold temperatures, or even in an improperly heated or cooled office, can lead to stress. Likewise, jobs that have rotating work shifts make it difficult for people to have stable sleep patterns. A poorly designed office, which makes it difficult for people to have privacy or promotes too little social interaction, can result in stress, as can poor lighting and inadequate work surfaces. Even more severe are actual threats to health. Examples include jobs such as coal mining, poultry processing, and toxic waste handling. Similarly, some jobs carry risks associated with higher incident rates of violence, for example, law enforcement officers, or those at risk of armed robberies, such as taxi drivers, and convenience store clerks. Role demands can also cause stress. (Roles are discussed more fully in Chapter 13.) A role is a set of expected behaviors associated with a position in a group or organiza- tion. Stress can result from either role conflict or role ambiguity that people can experi- ence in groups. For example, an employee who is feeling pressure from her boss to work longer hours or to travel more, while also being asked by her family for more time at home, will almost certainly experience stress as a result of role conflict.34 Similarly, a new employee experiencing role ambiguity because of poor orientation and training practices by the organization will also suffer from stress. Excessive meetings and mobilecommunication devices that keep people connected to their jobs are also potential sources of stress.35 Although job cuts and layoffs during the 2008–2009 recession focused on the stress experienced by those losing their jobs (and appropriately so), it’s also the case that many of the managers imposing the layoffs experienced stress.36 Interpersonal demands are stressors associated with relationships that confront people in organizations. For example, group pressures regarding restriction of output and norm conformity can lead to stress. Leadership styles may also cause stress. An employee who feels a strong need to participate in decision making may feel stress if his boss refuses to allow participation. And individuals with conflicting personalities may experience stress if required to work too closely together. For example, a person with an internal locus of control might be frustrated when working with someone who prefers to wait and just let things happen. Consequences of Stress As noted earlier, the results of stress may be positive or neg- ative. The negative consequences may be behavioral, psychological, or medical. Behavior- ally, for example, stress may lead to detrimental or harmful actions, such as smoking, alcohol or drug abuse, and overeating. Other stress-induced behaviors are accident proneness, violence toward self or others, and appetite disorders. Substance abuse is also a potential consequence.37 The psychological consequences of stress can interfere with an individual’s mental health and well-being. Problems include sleep disturbances, depression, family problems, and sexual dysfunction. Managers are especially prone to sleep disturbances when they experience stress at work.38 Medical consequences of stress affect an individual’s physio- logical well-being. Heart disease and stroke have been linked to stress, as have headaches, backaches, and skin conditions such as acne and hives.39 Individual stress also has direct consequences for businesses. For an operating employee, stress may translate into poor-quality work and lower productivity. For a man- ager, it may mean faulty decision making and disruptions in working relationships.40 Withdrawal behaviors can also result from stress. People who are having difficulties with stress in their jobs are more likely to call in sick or to leave their positions. More subtle forms of withdrawal may also occur. A manager may start missing deadlines, for example, or taking longer lunch breaks. Employees may also withdraw by developing feelings of indifference. The irritation displayed by people under great stress can make them difficult to get along with. Job satisfaction, morale, and commitment can all suffer as a result of excessive levels of stress. So, too, can motivation to perform. Another consequence of stress is burnout—a feeling of exhaustion that may develop when someone experiences too much stress for an extended period of time. Burnout results in constant fatigue, frustration, and helplessness. Increased rigidity follows, as do a loss of self-confidence and psychological withdrawal. The individual dreads going to work, often puts in longer hours but gets less accomplished than before, and exhibits mental and physical exhaustion. Because of the damaging effects of burnout, some firms are taking steps to help avoid it. For example, British Airways provides all of its employees with training designed to help them recognize the symptoms of burnout and develop strategies for avoiding it. The “Tough Times, Tough Choices” feature discusses other damaging consequences of stress. Managing Stress Given the potential consequences of stress, it follows that both people and organizations should be concerned about how to limit its more damaging effects. Numerous ideas and approaches have been developed to help manage stress. Some are strategies for indivi- duals; others are strategies for organizations.41One way people manage stress is through exercise. People who exercise regularly feel less tension and stress, are more self-confident, and feel more optimistic. Their better physical condition also makes them less susceptible to many common illnesses. People who do not exercise regularly, on the other hand, tend to feel more stress and are more likely to be depressed. They are also more likely to have heart attacks. And, because of their physical condition, they are more likely to contract illnesses. Another method people use to manage stress is relaxation. Relaxation allows indivi- duals to adapt to, and therefore better deal with, their stress. Relaxation comes in many forms, such as taking regular vacations. A recent study found that people’s attitudes toward a variety of workplace characteristics improved significantly following a vacation. People can also learn to relax while on the job. For example, some experts recommend that people take regular rest breaks during their normal workday. People can also use time management to control stress. The idea behind time man- agement is that many daily pressures can be reduced or eliminated if individuals do a better job of managing time. One approach to time management is to make a list every morning of the things to be done that day. The items on the list are then grouped into three categories: critical activities that must be performed, important activities that should be performed, and optional or trivial things that can be delegated or postponed. The individual performs the items on the list in their order of importance. Finally, people can manage stress through support groups. A support group can be as simple as a group of family members or friends with whom to enjoy leisure time. Going out after work with a couple of coworkers to a basketball game or a movie, for example, can help relieve stress built up during the day. Family and friends can help people cope with stress on an ongoing basis and during times of crisis. For example, an employee who has just learned that she did not get the promotion she has been working towardfor months may find it helpful to have a good friend to lean on, talk to, or yell at. People may also make use of more elaborate and formal support groups. Community centers or churches, for example, may sponsor support groups for people who have recently gone through a divorce, the death of a loved one, or some other tragedy. Organizations are also beginning to realize that they should be involved in helping employees cope with stress. One argument for this is that because the business is at least partially responsible for stress, it should also help relieve it. Another is that stress- related insurance claims by employees can cost the organization considerable sums of money. Still another is that workers experiencing lower levels of detrimental stress will be able to function more effectively. AT&T has initiated a series of seminars and work- shops to help its employees cope with the stress they face in their jobs. The firm was prompted to develop these seminars for all three of the reasons noted earlier. A wellness stress program is a special part of an organization specifically created to help deal with stress. Organizations have adopted stress management programs, health promotion programs, and other kinds of programs for this purpose. The AT&T seminar program noted earlier is similar to this idea, but true wellness programs are ongoing activities that have a number of different components. They commonly include exercise-related activities as well as classroom instruction programs dealing with smoking cessation, weight reduction, and general stress management. Some companies are developing their own programs or using existing programs of this type. Johns Manville, for example, has a gym at its corporate headquarters. Other firms negotiate discounted health club membership rates with local establishments. For the instructional part of the program, the organization can again either sponsor its own training or perhaps jointly sponsor seminars with a local YMCA, civic organization, or church. Organization-based fitness programs facilitate employee exercise, a very positive consideration, but such programs are also quite costly. Still, more and more companies are developing fitness programs for employees. Similarly, some companies are offering their employees periodic sabbaticals—extended breaks from work that presumably allow people to get revitalized and reenergized. Intel and McDonald’s are among the firms offering the benefit.

Causes and Management of Stress

Carefully read the sections talking about stress (pp. 273-279) and answer the following questions:

• In what ways has/is your current living and working situation created stress for you? Do you consider yourself a Type A or Type B personality type? Does personality Type matter? What are some of the additional causes of your stress? What are some of the consequences?
• How have you been managing your stress?
• Can you think of ways to possibly provide helpful advice for some of your fellow students?

Distinguish the strategic actions that differentiate between successful domestic and international sourcing plans. Instructions You have been in the Emerging Leaders onboarding learning and development program for one quarter and have experienced a few successes. During this onboarding-program you have participated in assessments and completed a leadership development outline to help you to identify and understand your organizational leadership style. Now let us move forward in the onboarding program where you are asked to develop a strategic plan outline to help you to distinguish the strategic actions that differentiate between successful domestic and international sourcing plans as an emerging operations leader. For this strategic plan outline, you are being asked to address and answer the following questions: Create a table outline and clearly distinguish the strategic actions that differentiate between successful domestic and international sourcing plans: What does a successful domestic sourcing plan entail? Explain how you as an Emerging Leader will implement a successful domestic sourcing plan. What does a successful international sourcing plan entail? Explain how you as an Emerging Leader will implement a successful international sourcing plan. Clearly distinguish and differentiate in the table outline between successful domestic and international sourcing plans.

Jim Corner, owner of Corner Bike Rentals, wants to start analyzing his company's quality. For each bike rental, there are four types of customer complaints: (1) bike not working properly, (2) wrong bike size, (3) bike uncomfortable, and (4) bike broken during operation. During the past week, his company rented 280 bikes. He received a total of twenty-six complaints

If Jim wanted to operate at the five-sigma level, what would his errors have needed to be over the past week?

Leadership comes down to taking care of the people in your organization and making them the best they can be, not giving up on them and never failing to be there for them. Explain how you will, when in a manager or leadership role, accomplish this?

Forecasting requires a combination of technique, system support, and administration. Identify some initiatives to enhance forecast accuracy?

Create a personal core competency profile that assesses your individual assets (both tangible and intangible) as well as how those have or are developing into specific capabilities,