KMF2043 HUMAN AND ORGANISATIONAL BEHAVIOR ASSIGNMENT 2: CASE ANALYSIS GROUP WORK (Five to Seven Students)

Instructions: Address the issues of case 1 and 2 and answer the questions. Submission report before or on 21st December 2012, 4.30PM. Submit at Reception Counter, Pejabat Am FSKPM

Case 1: Restructure at Bunga Raya Bank (12.5%)

Bunga Raya Bank is a large national bank that prides itself on achieving healthy profits each year. The shareholders are obviously very happy. Bunga Raya Bank has several hundred branches but, as with many other major banks, the Board is finding it more and more difficult to justify the existence and operation of smaller branches, particularly in regional areas. The economy has not been good this few years, and Bunga Raya Banks growth in profit has not been good with the hike of the inflation rate. For the past few months, the Board of Bunga Raya Bank has been discussing ways of generating more profits, and the only thing that everyone can agree upon is to downsize the operations. Yusuf Chang has been CEO of Metro Bank for 18 months. He was headhunted from a large banking group in the Malaysia, and the main purpose of his appointment is to generate even greater profits for Bunga Raya Bank. Yusufs appointment is for four years. Yusuf has been very successful throughout his banking career and is extremely experienced in all facets of banking as a result of his progression through the hierarchy from junior teller to CEO over a period of 15 years. Yusuf is known for his directive leadership style and has very few admirers. He wants things his way. Latifa Hamid is Group Operations Manager (GOM) for Bunga Raya Bank. Latifa has been with the company for 17 years and has worked her way up through the ranks from office clerk to GOM. Latifa is well liked by everyone. She always makes time to listen to staff, no matter what their problems are, and spends a lot of her time on the road traveling to individual Bunga Raya branches to ensure that operations are functioning well and that staff and customers are satisfied.

Yusuf was made aware of the Boards recommendation to downsize several weeks ago. He was advised by the Board that unless he could think of another way to increase profits for Bunga Raya Bank, he would have to make some drastic changes that would have a negative effect on staff and customers. Quietly and without any input from anyone, Yusuf has spent the month analyzing Bunga Raya Banks financial position and has come to the conclusion that in order to increase profits further, there is no choice but to downsize and completely close several branches. However, because of the influx of technology and Internet banking, Yusuf sees no reason why the option of online banking cannot be promoted more to customers, thereby allowing the changes to take place without too much inconvenience. Yusuf has decided that 70 regional branches will be affected and the sooner things are under way, the better. Yusuf has called Latifa to arrange a meeting to discuss the matter or rather, to present the operational strategy loosely detailing how this will take place. The rest is up to Latifa to organise , after all, shes the one who is closest to the staff and customers. Yusuf is conscious that Latifas first reaction will possibly be one of disapproval given that the downsizing or closure of 70 regional branches means not only the loss of jobs or relocation of employees, but that thousands of Bunga Raya Banks customers will be affected. However, as far as Yusuf is concerned, his appointed role is to increase profits and that is what he intends to do. There is no other way around it. He has the Boards backing to go ahead, and that is the most important thing as far as Yusuf is concerned. Of course, theres also the $1 million bonus at the end of his four-year term if his performance accords with the Boards expectations. Latifa arrives at Yusufs office for the 9 am meeting. She is aware that something is in the air, because Yusuf never takes the time to meet with her, despite her attempts to develop a good working relationship. The meeting begins, and after ten minutes Yusus has already briefed Latifa on his intention to downsize and close some of the branches. Now he wants Latifas input on how to approach staff and customers. Yusuf wants the whole process to take no longer than six months from initial communication with employees and customers to completing the downsizing and closure of the branches. Latifa is shocked. She expected something, but nothing as devastating as this. She has no idea what to do, because despite her experience in the banking industry, she has never had to deal with this sort of situation.

[Adapted from Restructure at Metro Bank by Val Morrison, Graduate College of Management, Southern Cross University]

Questions:

1. 2. 3.

Elaborate the main team issues you can note in the case. Based on the case, elaborate the difference on Yusufs and Latifas approach in communicating the changes to their staff. Yusuf is a directive leader he wants the job done, and done in his time frame. However, he obviously has not thought the whole process through and has decided to leave that to Latifa because of her excellent rapport with the banking staff. What advice would you give to Latifa about handling the situation?

4. 5. 6.

Discuss Yusufs and Latifas differences in their approach to Leadership. Justify your answer. How would you see the conflict between Yusuf and Latifa be solved? Taking this issue as an important lesson for your organisation to enjoy a better teamwork culture, what are the diversity management programmes would you suggest to get your employees bond as a team?

Case 2: A Difficult Task Force (12.5%)

Jos has been appointed chair of a steering task force to design the primary product line for a new joint venture between companies from Japan, United States, and South America. The new joint venture company will make, sell, and service pet caskets (coffins) for the burial of beloved pets, mostly dogs and cats. One month earlier, each company had assigned personnel to the task force:

From the Japanese company, Furuay Masahiko from Yokohama, assistant to the president of the Japanese company; Hamada Isao from Tokyo, director of marketing from its technology group; and Noto Takeshi from Tokyo, assistant director of its financial management department. From the United States company, Thomas Boone from Chicago, the top purchasing manager from its lumber and forest lands group; Richard Maret from Buffalo, the co director of the companys information systems group; and Billy Bob "Tex" Johnson from Arizona, the former CEO, now retired and a consultant for the company. From the South American company, Mariana Preus from Argentina, the head of product design for that companys specialty animal products group; Hector Bonilla from their Mexico City division, an expert in automated systems design for wood products; and Mauricio Gomes, in charge of design and construction for the plant, which will be located in southern Chile to take advantage of the vast forest there.

These members were chosen for their expertise in various areas and were taking valuable time away from their normal assignments to participate in the joint venture. As chair of the task force, Jos had scheduled an initial meeting for 10:00 A.M. Jos started the meeting by reviewing the history of the development of the joint venture and how the three company presidents had decided to create it. Then, Jos reviewed the market for the new highend, designer pet coffins, stressing that this task force was to develop the initial design parameters for the new product to meet increasing demand around the world. He then opened the meeting for comments and suggestions. Mariana Preus spoke first: "In my opinion, the current designs that we have in production in our Argentina plant are just fine. They are topnotch designs, using the latest technology for processing. They use the best woods available and they should sell great. I dont see why we have to design a whole new product line." Noto Takeshi agreed and urged the committee to recommend that the current designs were good enough and should be immediately incorporated into the plans for the new manufacturing plant. Jos interrupted the discussion: "Look, the council of presidents put this joint venture together to completely revolutionize the product and its manufacture based on solid evidence and industry data. We are to redesign the product and its

manufacturing systems. That is our job, so lets get started." Jos knew that the presidents had considered using existing designs but had rejected the idea because the designs were too old and not easily manufacturable at costs low enough to make a significant impact on the market. He told the group this and reminded them that the purpose of the committee was to design a new product. The members then began discussing possible new design elements, but the discussion always returned to the benefits of using the existing designs. Finally, Tex spoke up: "I think we ought to do what Mariana suggested earlier. It makes no sense to me to design new caskets when the existing designs are good enough to do the job." The others nodded their heads in agreement. Jos again reminded them of the task forces purpose and said such a recommendation would not be well received by the council of presidents. Nevertheless, the group insisted that Jos write a memo to the council of presidents with the recommendation to use existing designs and to begin immediately to design the plant and the manufacturing system. The meeting adjourned and the members headed to the golf course at 10:45 A.M. Jos returned to his computer and started to write the memo, but he knew it would anger the presidents. He hoped he would not be held responsible for the actions of the task force, even though he was its chair. He wondered what had gone wrong and what he could have done to prevent it.
[Adapted from The Teams of People Gregory Moorhead, Arizona State University]

Questions: 1. Which characteristics of group behavior discussed in the chapter can you identify in this case? 2. Can Jose communicate the need to revolutionize by their principal to all the members? Why or Why Not? 3. Does the expertise from each of the group members work as barriers towards discussing the possible design? Explain 4. Do you think that the meeting is a successful brainstorming session? Why or Why Not? 5. Will culture be one of the barriers towards promoting good team work? Explain. 6. If you were in Joses position, what would you have done differently? What would you do now?

CASE ANALYSIS 2: EVALUATION SCHEME

Case 2: Restructure at Bunga Raya bank (12.5%) 1. Elaborate the main team issues you can note in the case 2. Based on the case, elaborate the difference on Yusufs and Latifas approach in communicating the changes to their staff. 3. Yusuf is a directive leader he wants the job done, and done in his time frame. However, he obviously has not thought the whole process through and has decided to leave that to Latifa because of her excellent rapport with the banking staff. What advice would you give to Latifa about handling the situation? 4. Discuss Yusufs and Latifas differences in their approach to Leadership. Justify your answer. 5. How would you see the conflict between Yusuf and Latifa be solved? 6. Taking this issue as an important lesson for your organisation to enjoy a better teamwork culture, what are the diversity management programmes would you suggest to get your employees bond as a team? Case 2: A Difficult Task Force (12.5%) Total 100 7. Which characteristics of group behavior discussed in the chapter can you identify in this 20 Total 100 20 10 20

10 20 20

case?
8. Can Jose communicate the need to revolutionize by their principal to all the members?

Why or Why Not?

9. Does the expertise from each of the group members work as barriers towards discussing

10 20 10 20 20

the possible design? Explain

10. Do you think that the meeting is a successful brainstorming session? Why or Why Not? 11. Will culture be one of the barriers towards promoting good team work? Explain. 12. If you were in Joses position, what would you have done differently? What would you

do now?