Question

In: Operations Management

Hans was a sales representative at Enco, Inc. One morning he approached Norma, the production manager....

Hans was a sales representative at Enco, Inc.
One morning he approached Norma, the production manager. “Hey, Norma,” he said. “I just got an order for 150 units. I had to promise speedy delivery to get the order.”
Norma asked, “Well, how speedy did you promise them?” Hans said he promised two-day delivery. Norma replied, “Hans, you know we have to have at least two shifts to even get the production finished, without figuring in shipping time.”
“What are you saying?” Hans exploded. “That
you won’t even try? Well, Mr. Carlson will override your stubbornness. I’ll just go see him.”
Later that day, a rather sheepish Hans again approached Norma with a different tone. “Hi,
Norma. So, what did you tell Mr. Carlson? He’s
never said ‘no’ to one of my rush orders before.”
“I didn’t say anything to him. Mr. Carlson
could see that our present orders are at least as
important as your ‘urgent’ one.”
“Look, Norma, I guess I was scared about losing an order. Can you see where I was coming
from?”
Norma said, “I understand your position.
But you are the one who got yourself in this predicament. Using impossible delivery schedules
as a major selling point is not wise.”
“You’re right,” Hans agreed. “About an hour
ago, I called the customer, and you know what?
They’ll go for three days if we ship two-day mail
service.”
Norma stayed firm. “Tell you what, Hans.
You talk to Mr. Carlson about budgeting the extra money for overnight delivery. If he goes
for that, I’ll see to it the order gets out in three
days.”
“When Carlson finds out we’ll lose a big client unless we ship overnight, I know he’ll go for it. I
really owe you one.”
“No, you don’t ‘owe me one.’ Just please lay off the rush orders. You’re good enough at sales to
not let this happen.”

1. What are the sources of conflict in this case?
2. Is the solution a win-win? Explain.
3. If Hans should come up with another situation like this one, what would you do if you were Norma? If you were Mr. Carlson?

Solutions

Expert Solution

1)- The major sources of conflicts in the above situation is a lack of interpersonal relationships and interdependence where Hans have to rely on the production manager Norma, so as to commit orders to the customers. According to my opinion, if there would have been understanding between both of them, the conflict couldn't have arisen. The goal of one is dependent and effected by another which leads to conflicts between the people. Resource scarcity is yet another aspect which leads to the possibility of conflicts since the budgets were slim and have to been fastened by the director of the company in order to speed up the production. Unrealistic needs and expectations set up by Hans have to lead to the conflict with Norma where he feels that two-day delivery is not a possible task in any which case.

2)- When the solution anticipated is mutually beneficial for both the parties, it leads to a win-win situation and in the above situation, the same decision has been taken. Hans even convinced the customer for the three-day delivery, whereafter he came to speak to Norma to fulfil the same. They reached a solution where Norma agreed to ensure timely delivery for Hans if he is able to convince Mr Carlson for extra money in order to carry overnight delivery. This is a win-win strategy for both the parties where Hans will be able to keep his promotion to the customer by ensuring timely delivery after he gets optimal budgets and for Norma who has undergone realistic expectations for his production and don't have to compromise with the shifts. The trusting and cooperative tome has been set between both parties.

3)- If I were Norma and Hans would again come up with this sort of situation, I would have a word with the director or Mr Carlson so as to avoid harmful conflicts which can hamper the operations of the organisation. I will complete the orders which are more important for the business rather than the rush one orders so that the goals of the organisation are achieved and not the personal ones by building a product roadmap. I will step forward to build interpersonal relationships and trust between us by clearly justifying the "no" reasoning. Calmness and strength can better our communication by prioritising goals and customers. Regular check-ins can be scheduled in order to reveal any potential questions. Regular interactions with the prospective and existing customers can help me understand their problems and have customer insights. I will invest time in understanding the feedbacks of the customers so as to get valuable information impacting sales team.

If I were Mr Carlson:

The roles and goals should be clearly defined for both the teams so that the production team gets the necessary time for operations and the sales team can effectively commit to their customers. Since both the departments couldn't work as a stand-alone entity, I will make sure that both the teams work in complete collaboration and alignment so as to enhance productivity and effectiveness. Further, communication between the teams has to be strengthened by making sure that their contact information is readily available and via using communication tools such as Slack etc, the teams can chat in real-time, take care of the tasks, resources and much more. A centralised knowledgeable base could be developed for organising, collecting and distributing resources available for the business. The conflict resolution process has to be implemented prior to the situation of tensions. A cross-departmental problem-solving strategy could be encouraged so that they can resolve their disputes in harmony


Related Solutions

In a telephone conversation with a sales representative of a linen company, the manager of a...
In a telephone conversation with a sales representative of a linen company, the manager of a hotel ordered $1,000 worth of sheets. Following the conversation, the manager wrote a memo to the file documenting the agreement, initialed it, and sent a copy to the sales representative. One of the linen company’s competitors learned of this contract and contacted the hotel to tell them that the sheets were poorly manufactured and that they should stop buying from the linen company and...
Tom Hawk is the production manager at English Garden Company. One of the products he is...
Tom Hawk is the production manager at English Garden Company. One of the products he is responsible for producing is its top-selling wheelbarrow. In the past Mr. Hawk has purchased wheels from the Jerk Werx Company for $6.00 each. Jerk Werx recently informed Mr. Hawk that, when the current contract expires, it will be raising the price of wheels to $7.00 each. In a typical year, English Garden makes 50,000 wheelbarrows. If it decides to make the wheels for its...
87. Eloise is a sales representative for a video production company. While at an exposition, she...
87. Eloise is a sales representative for a video production company. While at an exposition, she incurs $2,000 in entertainment expenses and $1,200 for meals. The expenses occur while she is discussing business and Eloise makes an adequate accounting to her employer and is reimbursed $1,200. How much may Eloise deduct if her AGI is $40,000? a. $- 0 - b. $1,200 for AGI and $200 from AGI. c. $1,200 for AGI and $2,000 from AGI. d. $- 0 -...
(Morning Sky Inc.) MSI has been approached by a fourth-grade teacher from Portland about the possibility...
(Morning Sky Inc.) MSI has been approached by a fourth-grade teacher from Portland about the possibility of creating a specially designed game that would be customized for her classroom and environment. The teacher would like an educational game to correspond to her classroom coverage of the history of the Pacific Northwest, and the state of Oregon in particular. MSI has not sold its products directly to teachers or school systems in the past, but its Marketing Department identified that possibility...
In late 2011, you are approached by the HP Inc CFO. He is asking you to...
In late 2011, you are approached by the HP Inc CFO. He is asking you to assist with a negotiation with Canon. HP stands to lose quite a bit of printer profitability with the Yen at 75. He suggests that HP Inc. renegotiate the contract with Canon to be dollar-based.   How would you like to respond? Your response should consider both your expectations of the future relative values of the Yen and Dollar, as well as HP’s exposures and abilities...
he following is known for Tourist Trinkets, Inc: One half of all sales are on credit....
he following is known for Tourist Trinkets, Inc: One half of all sales are on credit. Of the credit sales, 75% are collected in the same month and 25% in the next month The total sales for June were $125,000 and expected sales are $160,000 in July and $130,000 in August The desired ending inventory is 15% of next month's sales in units at the end of each month The gross margin percentage is 40% The payments to suppliers are:...
Pyramid Printing Company’s Controller, Sally Sound, has been approached by the Production Manager, Darrell Dailey, regarding...
Pyramid Printing Company’s Controller, Sally Sound, has been approached by the Production Manager, Darrell Dailey, regarding the cost of quality, given the spoilage experienced in April 2017. Darrell indicates that improvements in the proofing process would be required in order to mitigate the risk of incurring similar, significant quality costs. As the presses are beginning to show their age, the company has to dedicate more resources to quality initiatives, Dailey indicated. What are the four types of quality costs? Under...
A production line manager wants to determine how well the production line is running. He randomly...
A production line manager wants to determine how well the production line is running. He randomly selected 90 items off of the assembly line and found that 8 were defective. (Assume all conditions have been satisfied for building a confidence interval). Find the 99% confidence interval. (0.0234, 0.1099) (0.0116, 0.1662) (0.0301, 0.1477) (0.0396, 0.1382)
One morning the Open Market Account Manager at the New York Federal Reserve Bank observes that...
One morning the Open Market Account Manager at the New York Federal Reserve Bank observes that the equilibrium (market) federal funds rate is 3.25%. Suppose the target federal funds rate is 2.5%. What does this indicate about total reserves in the banking system? What would the Account Manager decide to do (open market purchase or open market sale)? Draw a reserves market diagram to explain your answer. Label the diagram(s) neatly and show all the changes clearly.
1. You are a management accountant for Burn's Corporation. Ruth Hamilton, the sales representative for one...
1. You are a management accountant for Burn's Corporation. Ruth Hamilton, the sales representative for one of Burn's suppliers, invited you to attend a professional sporting event. Because you are an avid sports fan, you accepted Ruth's invitation. At the sporting event, Ruth begins talking about Burn's upcoming contract renewals with suppliers. Because there is intense competition and because it is the first bid she will submit to Burn's Corporation, she asks you to review her bid to make sure...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT