In: Operations Management
Urgent!!
please answer the following question from the article below.
1. Who is the least motivated person at FireArt and why? Recommend at least 2
actions Eric can take to more effectively motivate this employee. Explain how your
recommendations are supported by a specific theory of motivation.
2. Randy Louderback believes that the best ideas “never came out of a team. Brilliant
ideas come from brilliant individuals, who then inspire others in the organization
to implement them." Under which conditions is this belief accurate? Under which
conditions is this belief inaccurate?
3. How would you describe the level of task interdependence at FireArt? Describe 3
ways Eric Holt can increase task interdependence in his team (1 recommendation
per type of task interdependence). Which of these recommendations do you
believe would be most effective and why?
4. Which team roles are present and absent at FireArt? What are the implications of
these roles for Eric Holt and his team’s performance?
5. What are the types and sources of conflict at FireArt? Which conflict handling styles
are present and absent among FireArt employees? What are 2 ways Eric Holt can
improve his conflict management?
6. Describe the organizational culture of FireArt? How does this culture affect Eric
Holt’s experience and effectiveness as a manager? Based on the Model of Team
Effectiveness, provide at least 5 recommendations to help Eric Holt better build and
manage teams.
The last thing Eric Holt had expected to miss about New York City was its sunrises. Seeing one usually
meant he had pulled another all-nighter at the consulting firm where, as a vice president, he had
managed three teams of manufacturing specialists. But as he stood on the balcony of his new apartment
in the small Indiana city that was now his home, Eric suddenly felt a pang of nostalgia for the way the
dawn plays off the skyscrapers of Manhattan. In the next moment, though, he let out a sardonic laugh.
The dawn light was not what he missed about New York. What he missed was the feeling of
accomplishment that usually accompanied those sunrises.
An all-nighter in New York had meant hours of intense work with a cadre of committed, enthusiastic
colleagues. Give and take. Humor. Progress. Here, so far anyway, that was unthinkable. As the director
of strategy at FireArt, Inc., a regional glass manufacturer, Eric spent all his time trying to get his new
team to make it through a meeting without the tension level becoming unbearable. Six of the top-level
managers involved seemed determined to turn the company around, but the seventh seemed equally
determined to sabotage the process. Forget camaraderie. There had been three meetings so far, and
Eric hadn't even been able to get everyone on the same side of an issue.
Eric stepped inside his apartment and checked the clock: only three more hours before he had to watch
as Randy Louderback, FireArt's charismatic director of sales and marketing, either dominated the group's
discussion or withdrew entirely, tapping his pen on the table to indicate his boredom. Sometimes he
withheld information vital to the group's debate; other times he coolly denigrated people's comments.
Still, Eric realized, Randy held the group together because of his dynamic personality, his almost
legendary past, and his close relationship with FireArt's CEO that he could not be ignored. And at least
once during each meeting, he offered an insight about the industry or the company that was so
perceptive that Eric knew he shouldn't be ignored.
As he prepared to leave for the office, Eric felt the familiar frustration that had started building during
the team's first meeting a month earlier. It was then that Randy had first insinuated, with what sounded
like a joke, that he wasn't cut out to be a team player.
FireArt, Inc., was in trouble- not deep trouble, but enough for its CEO, Jack Derry, to make strategic
repositioning Eric's top and only task. The company, a family-owned maker of wine goblets, beer steins,
ashtrays, and other glass novelties had succeeded for nearly 80 years as a high-quality, high-price
producer, catering to hundreds of Midwestern clients. It traditionally did big business every football
season, selling commemorative knickknacks to the fans of teams such as the Fighting Irish, the
Wolverines, and the Golden Gophers. In the spring, there was always a rush of demand for senior prom
items -- champagne goblets emblazoned with a school's name or beer mugs with a school's crest, for
example. Fraternities and sororities were steady customers. Year after year, FireArt showed respectable
increases at the top and bottom lines, posting $86 million in revenues and $3 million in earnings three
years before Eric arrived.
In the last 18 months, though, sales and earnings had flattened. Jack, a grandnephew of the company's
founder, thought he knew what was happening. Until recently, large national glass companies had been
able to make money only through mass production. Now, however, thanks to new technologies in the
glassmaking industry, those companies could execute short runs profitably. They had begun to enter
FireArt's niche, Jack had told Eric, and, with their superior resources, it was just a matter of time before
they would own it.
"You have 1 responsibility as FireArt's new director of strategy," Jack had said to Eric on his first day.
"That's to put together a team of our top people, one person from each division, and have a plan for the
company's strategic realignment up, running, and winning within 6 months."
Eric had immediately compiled a list of the senior managers from human resources, manufacturing,
finance, distribution, design, and marketing, and had set a date for the first meeting. Then, drawing on
his years as a consultant who had worked almost solely in team environments, Eric had carefully
prepared a structure and guidelines for the group's discussions, disagreements, and decisions, which he
planned to propose to the members for their input before they began working together.
Successful groups are part art, part science, Eric knew, but he also believed that with every member's
full commitment, a team proved the adage that the whole is greater than the sum of its parts. Knowing
that managers at FireArt were unaccustomed to the team process, however, Eric imagined he might get
some resistance from one or two members.
For one, he had been worried about Ray LaPierre of manufacturing. Ray was a giant of a man who had
run the furnaces for some 35 years, following in his father's footsteps. Although he was a former high
school football star who was known among factory workers for his hearty laugh and practical jokes, Ray
usually didn't say much around FireArt's executives, citing his lack of higher education as the reason. Eric
had thought the team atmosphere might intimidate him.
Eric had also anticipated a bit of a fight from Maureen Turner of the design division, who was known to
complain that FireArt didn't appreciate its six artists. Eric expected Maureen might hesitate to
collaborate with people who didn't understand the design process.
Ironically, both those fears had proved groundless, but another, more difficult problem had arisen. The
wild card had turned out to be Randy. Eric had met Randy once before the team started its work and
had found him to be enormously intelligent, energetic, and good-humored. What's more, Jack Derry had
confirmed his impressions, telling him that Randy "had the best mind" at FireArt. It was also from Jack
that Eric had first learned of Randy's hardscrabble yet inspirational personal history.
Poor as a child, he had worked as a security guard and short-order cook to put himself through the state
college, from which he graduated with top honors. Soon after, he started his own advertising and market
research firm in Indianapolis, and within the decade, he had built it into a company employing 50 people
to service some of the region's most prestigious accounts. His success brought with it a measure of fame:
articles in the local media, invitations to the statehouse, even an honorary degree from an Indiana
business college. But in the late 1980s, Randy's firm suffered the same fate as many other advertising
shops, and he was forced to declare, bankruptcy. FireArt considered it a coup when it landed him as
director of marketing, since he had let it be known that he was offered at least two dozen other jobs.
"Randy is the future of this company," Jack Derry had told Eric. "If he can't help you, no one can. I look
forward to hearing what a team with his kind of horsepower can come up with to steer us away from
the mess we're in."
Those words echoed in Eric's mind as he sat, with increasing anxiety, through the team's first and second
meetings. Though Eric had planned an agenda for each meeting and tried to keep the discussions on
track, Randy always seemed to find a way to disrupt the process. Time and time again, he shot down
other people's ideas, or he simply didn't pay attention. He also answered most questions put to him with
maddening vagueness. "I'll have my assistant look into it when he gets a moment," he replied when one
team member asked him to list FireArt's five largest customers. "Some days you eat the bear, and other
days the bear eats you," he joked another time, when asked why sales to fraternities had recently nosedived.
Randy's negativism, however, was countered by occasional comments so insightful that they stopped
the conversation cold or turned it around entirely -- comments that demonstrated extraordinary
knowledge about competitors or glass technology or customers' buying patterns. The help wouldn't last,
though, Randy would quickly revert to his role as team renegade.
The third meeting, last week, had ended in chaos. Ray LaPierre, Maureen Turner, and the distribution
director, Carl Simmons, had each planned to present cost-cutting proposals, and at first it looked as
though the group were making good progress.
Ray opened the meeting, proposing a plan for FireArt to cut throughput time by 3% and raw-materials
costs by 2%, thereby positioning the company to compete better on price. It was obvious from his
detailed presentation that he had put a lot of thought into his comments, and it was evident that he was
fighting a certain amount of nervousness as he made them.
"I know I don't have the book smarts of most of you in this room," he had begun, "but here goes anyway."
During his presentation, Ray stopped several times to answer questions from the team, and as he went
on, his nervousness transformed into his usual ebullience. "That wasn't so bad!" he laughed to himself
as he sat down at the end, flashing a grin at Eric. "Maybe we can turn this old ship around."
Maureen Turner had followed Ray. While not disagreeing with him -- she praised his comments, in fact
-- she argued that FireArt also needed to invest in new artists, pitching its competitive advantage in
better design and wider variety. Unlike Ray, Maureen had made this case to FireArt's top executives
many times, only to be rebuffed, and some of her frustration seeped through as she explained her
reasoning yet again. At one point, her voice almost broke as she described how hard she had worked in
her first ten years at FireArt, hoping that someone in management would recognize the creativity of her
designs. "But no one did," she recalled with a sad shake of her head. "That's why when I was made
director of the department, I made sure all the artists were respected for what they are -- artists, not
worker ants. There's a difference, you know." However, just as with Ray LaPierre, Maureen's comments
lost their defensiveness as the group members, with the exception of Randy, who remained impassive,
greeted her words with nods of encouragement.
By the time Carl Simmons of distribution started to speak, the mood in the room was approaching
buoyant. Carl, a quiet and meticulous man, jumped from his seat and practically paced the room as he
described his ideas. FireArt, he said, should play to its strength as a service-oriented company and
restructure its trucking system to increase the speed of delivery. He described how a similar strategy had
been adopted with excellent results at his last job at a ceramics plant. Carl had joined FireArt just six
months earlier. It was when Carl began to describe those results in detail that Randy brought the meeting
to an unpleasant halt by letting out a loud groan. "Let's just do everything, why don't we, including
redesign the kitchen sink!" he cried with mock enthusiasm. That remark sent Carl back quickly to his
seat, where he halfheartedly summed up his comments. A few minutes later, he excused himself, saying
he had another meeting. Soon the others made excuses to leave, too, and the room became empty.
No wonder Eric was apprehensive about the fourth meeting. He was therefore surprised when he
entered the room and found the whole group, save Randy, already assembled.
Ten minutes passed in awkward small talk, and, looking from face to face, Eric could see his own
frustration reflected. He also detected an edge of panic -- just what he had hoped to avoid. He decided
he had to raise the topic of Randy's attitude openly, but just as he started, Randy ambled into the room,
smiling. "Sorry, folks," he said lightly, holding up a cup of coffee as if it were explanation enough for his
tardiness.
"Randy, I'm glad you're here," Eric began, "because I think today we should begin by talking about the
group itself -- "
Randy cut Eric off with a small, sarcastic laugh. "Uh-oh, I knew this was going to happen," he said.
Before Eric could answer, Ray LaPierre stood up and walked over to Randy, bending over to look him in
the eye.
"You just don't care, do you?" he began, his voice so angry it startled everyone in the room.
Everyone except Randy. "Quite the contrary -- I care very much," he answered breezily. "I just don't
believe this is how change should be made. A brilliant idea never came out of a team. Brilliant ideas
come from brilliant individuals, who then inspire others in the organization to implement them."
"That's a lot of bull," Ray shot back. "You just want all the credit for the success, and you don't want to
share it with anyone."
"That's absurd," Randy laughed again. "I'm not trying to impress anyone here at FireArt. I don't need to.
I want this company to succeed as much as you do, but I believe, and I believe passionately, that groups
are useless. Consensus means mediocrity. I'm sorry, but it does."
"But you haven't even tried to reach consensus with us," Maureen interjected. "It's as if you don't care
what we all have to say. We can't work alone for a solution -- we need to understand each other. Don't
you see that?"
The room was silent as Randy shrugged his shoulders noncommittally. He stared at the table, a blank
expression on his face.
It was Eric who broke the silence. "Randy, this is a team. You are part of it," he said, trying to catch
Randy's eye without success. "Perhaps we should start again -- "
Randy stopped him by holding up his cup, as if making a toast. "Okay, look, I'll behave from now on," he
said. The words held promise, but he was smirking as he spoke them -- something no one at the table
missed. Eric took a deep breath before he answered; as much as he wanted and needed Randy
Louderback's help, he was suddenly struck by the thought that perhaps Randy's personality and his past
experiences simply made it impossible for him to participate in the delicate process of ego surrender
that any kind of teamwork requires.
"Listen, everyone, I know this is a challenge," Eric began, but he was cut short by Randy's pencil-tapping
on the table. A moment later, Ray LaPierre was standing again.
"Forget it. This is never going to work. It's just a waste of time for all of us," he said, more resigned than
gruff. "We're all in this together, or there's no point." He headed for the door, and before Eric could stop
him, two others were at his heels.
1. The least motivated person at FireArt is Carl Simmons. After reading the case, it may seem that Randy is the least motivated person but if thought carefully, he is just not assured of the effectiveness of the meeting. Ray is passionate enough to confront Randy and hence we cannot exactly consider him as the least motivated person. Maureen too is quite motivated and passionate as she carried on with her work after ten years of lack of recognition. She too was quite passionate during the presentation and that demonstrates her motivation.
Carl Simmons on the other hand was quite easily derailed by Rany’s behavior. Also considering that he joined FireArt just 6 months ago, his attachment with the organization is considerably limited compared to the others. This displays a lack of drive and passion. This makes me believe that Carl is the least motivated person in the team.
In order to motivate Carl, Eric need to do the following
So far, he has been easily unsettled by Randy. Eric needs to stand behind Carl (temporarily) and help him to get motivated. The activities mentioned above resonate with Herzberg’s two factor theory. Here we can assume that the Hygiene factors are all in place. However since the motivators are missing due to Randy’s interference, Eric should tackle the scenario.
2. Randy’s belief is true in certain scenarios. The statement of individual brilliance is true when the entire result depends on an individual’s performance. For example, individualistic sports, professional services, individual consultants, chartered accountants, lawyers, etc are all the type of functions that support Randy’s vision. These kind of services, solutions, and jobs require an individual to be brilliant to get the best result. However, in a team based operation such as FireArt, where there multiple moving parts (operations, distribution, design, sales) the statement is not correct. Collaboration and effort is required to achieve result more than individual brilliance.