An Analysis of the Best Practice of Goal-Setting Paired with Feedback

By Aaron S. Robertson

The following is the author's contribution to a group paper submitted in March 2012 for a class assignment in a course on teams. The author is currently pursuing a master of science in management degree from Cardinal Stritch University in Milwaukee. For this assignment, the group looked at best practices that encourage and inspire employees, ultimately leading to more productive, efficient, and stronger organizations.

The importance of a people-focused, team-centered approach in any organization cannot be overstated. If an organization is to achieve great results and create a sense of loyalty among its employees, it must provide a cultural framework that embraces collaboration, trust, openness, and, to a degree, while still acknowledging the need for an orderly chain of command, equality.

These traits can certainly benefit any type of organization, even one that works for no monetary gain; even an arm of a state’s military. Abrashoff (2002), a captain in the United States Navy and former commander of the USS Benfold, is known for having brought to the Navy a number of fresh perspectives and a progressive management philosophy, which can be difficult in an organization that is well over two centuries old and is rich in tradition and etiquette. His approach to leading can potentially be best summarized by his statement that,

I wanted sailors to open their minds, use their imaginations, and find better ways of doing everything. I wanted officers to understand that ideas and initiative could emerge from the lower deck as well as muscle and blind obedience. And I wanted everyone on the ship to see one another as people and shipmates. As captain, I was charged with enforcing 225 years of accumulated Navy regulations, policies, and procedures. But every last one of those rules was up for negotiation whenever my people came up with a better way of doing things. As soon as one of their new ideas worked in practice, I passed it up the chain of command, hoping my superiors would share it with other ships. (p.83). 

Abrashoff’s (2002) overall strategy to accomplishing this environment, or culture, included waiting at the back of the line during meal time and encouraging his fellow officers to do the same; joining the enlisted ranks for meals in order to get to better know them and understand their concerns, hopes, and aspirations (pp. 83-84); encouraging his entire crew, no matter one’s rank, to feel comfortable speaking up to him with alternative suggestions, ideas, etc. (p. 89); actively and aggressively listening (pp. 43-44); and creating an atmosphere that encouraged fun (p. 189). All of this led to improved morale, camaraderie, trust, and motivation, which in turn resulted in greater efficiency and effectiveness. In short, it became easier to achieve goals. Goal-setting, in conjunction with meaningful feedback, is essential to an organization’s ability to thrive. Kreitner & Kinicki (2010) note that,

Feedback enhances the effect of specific, difficult goals…Feedback lets people know if they are headed toward their goals or if they are off course and need to redirect their efforts. Goals plus feedback is the recommended approach. Goals inform people about performance standards and expectations so that they can channel their energies accordingly. In turn, feedback provides the information needed to adjust direction, effort, and strategies for goal accomplishment (p. 230). 

Ritz-Carlton is another example of how factors such as feedback, goal-setting, and collaboration are key to building and maintaining a successful organization. Kreitner & Kinicki (2010) note that, “To ensure that errors are reported rather than covered up, Ritz-Carlton tries hard to de-stigmatize them, shifting the focus from blame to correction…At the start of every shift, every day, at every Ritz-Carlton property, a 15-minute staff meeting takes place” (p. 315).

In both cases, that of Captain Abrashoff’s progressive leadership in an organization that is arguably often stingy to adopt new ways of viewing and doing things, and Ritz-Carlton’s desire to work on driving out errors from its facilities together as a team, themes such as feedback, cooperation, and goal-setting resonate loudly. The captain, among implementing other somewhat unorthodox practices, invites and encourages feedback from all of the sailors under his command, regardless of their rank. Ritz-Carlton is essentially acknowledging here that everyone is human and will therefore make mistakes. The company and its leadership fully expect that they will occur from time to time. With this realistic, sensible admission then, the question shifts more from, “How is it possible for errors to happen” to, “What can be learned from them so that they can be avoided, or at the very least, diminished, in the future?” The company addresses the issue of errors head-on in a safe environment, one that allows managers and their employees to learn together and drive progress moving forward.

In both environments, it is evident that the six factors Fernando Bartolome, a consultant and professor of management, believes constitutes the building of trust, are being closely embraced. These six key ingredients are communication, support, respect, fairness, predictability, and competence (Kreitner & Kinicki, 2010, p. 319). This trust leads to a fundamental strengthening of instrumental cohesiveness, which Kreitner & Kinicki (2010) define as, “…a sense of togetherness that develops when group members are mutually dependent on one another because they believe they could not achieve the group’s goal by acting separately. A feeling of ‘we-ness’ is instrumental in achieving the common goal” (pp. 319-320).

These organizations differ from those that put an emphasis on a management philosophy known either as Management by Objectives (MBO) or Management by Results. Scholtes, Joiner, and Streibel (2010) discuss the pitfalls that can easily occur in an organization that runs on this management style:

Management by Results focuses on results and does not pay attention to how the work gets done. The goals do not reflect an understanding of the organization as a system or of process capabilities. The assumption is that if management sets goals, employees will figure out how to meet them. At first glance, this logic seems good, it even appears to facilitate empowerment and the focus on results. However, the way this system is implemented tends to produce harmful side effects that do not serve the long-term interests of the organization (p. xvii). 

Robertson (2012), in a paper devoted exclusively to the Management by Objectives way of thinking, went further, analyzing situations that frequently occur in industries such as banking, automotive sales, and insurance sales. He made the case that feedback is essential to taking any organization to the next level, and that hard goals alone are a poor indicator of the value and potential of an organization and its individual employees. He observed that,

…such a system could potentially damage, even destroy, opportunities for further growth…the deliverance of customer service is not taken into account and employees who may possess other talents and skills that could benefit the organization are being held only to these hard goals, potentially resulting in the termination of their employment if they fail to meet them. Furthermore, employees are not receiving vital feedback under this kind of performance management system that could help them improve their performance. 

It can be observed that the Navy captain and Ritz-Carlton realize the importance of building up their employees. They understand that a management style that encourages collaboration, meaningful and insightful feedback, and a genuine interest in getting to know their employees on more of a personal level is perhaps the best investment they can make in their respective organizations, an investment that will ensure the health and vitality of their institutions for years to come.

References

Abrashoff, D. Michael. (2002). It’s your ship: Management techniques from the best damn ship in the navy. New York: Warner Books, Inc.

Kreitner, R., & Kinicki, A. (2010). Organizational behavior (9th ed.). Boston, MA: McGraw Hill/Irwin.

Scholtes, P.R., Joiner, B.L., & Streibel, B.J. (2010). The team handbook (3rd ed.). Madison, WI: Oriel.

Robertson, A.S. (2012, February 20). An Analysis of Management By Objectives (MBO). Posted to http://www.milwaukeebusinessopportunities.com

Communication Within Teams in the IT Industry

By Aaron S. Robertson

The following is the author's contribution to a group paper submitted in May 2012 for a class assignment in a course on teams. The author is currently pursuing a master of science in management degree from Cardinal Stritch University in Milwaukee. For this assignment, the group analyzed a working group within a company in the IT industry. The working group was experiencing communication breakdowns, misunderstandings, and other issues between its members.

In order to overcome the obstacles the group within the company is currently facing, it is imperative that communication is improved. Communication is no doubt important for the health and vitality of any team or organization, but it may prove especially important for firms engaged in the business of software and engineering, where there is often highly-specialized technical or industry-specific language in use, both in written and verbal forms. This jargon, along with insights, ways of thinking, goals, needs, and so forth, may not be so well-understood by other teams within such an organization, like sales, marketing, support, operations, and etc. This is where communication breakdowns, misunderstandings, and barriers can easily occur. Wagstrom, Herbsleb, & Carley (2010) attest to this by pointing out that,

Software is often developed by dynamic and virtual teams. Frequently forming for short term tasks, dynamically adding and removing team members, and often incorporating members at remote sites, communication amongst members is never a given and is rarely predictable. Successful teams must contend with a myriad of challenges including gaps in organizational knowledge, a lack of experience working together, and varying skill sets (p. 1).

Addressing engineering in broader terms, our colleague Aaron Robertson was recently a participant in a meeting that took place at his town’s public high school. That meeting, in which prominent members of the business community, parents, academics from post-secondary institutions, and select teachers and support staff from the high school also took part in, resolved to find ways to create more opportunities for local high school students interested in pursuing post-secondary education, and eventually, careers, in an engineering field. A variety of possible solutions emerged from the discussion, including additions or revisions made to the specialized elective curriculum at the high school and the creation of a number of community partnerships. One of the common themes shared at this meeting was the perception, whether real or perceived, that many engineering students and engineers are ineffective communicators, and, tying into their communication skills, struggle to bridge their skillful craft with themes like business, marketing, and entrepreneurship (A. Robertson, personal communication, April 30, 2012).

Returning to the subject of communication specifically, Pentland (2012), in research he and his colleagues recently conducted on the role and power of communication within teams, found that,

With remarkable consistency, the data confirmed that communication indeed plays a critical role in building successful teams. In fact, we’ve found patterns of communication to be the most important predictor of a team’s success. Not only that, but they are as significant as all the other factors—individual intelligence, personality, skill, and the substance of discussions—combined (p. 62).

One strategy that would help foster more efficient and effective communication and hence improve overall coherence amongst team members is the creation of a problem statement, followed by the implementation of a team charter that seeks to adequately address the problem that has been identified and targeted for correction or improvement. Such a strategy is known simply as “localizing the problem”. Scholtes, Joiner, & Streibel (2003) elaborate on this process, stating,

One way to define a problem is to pinpoint when and where the problem occurs. This is called “localizing.” You will use your energies best if you localize a problem before plunging deeply into a project. Often the problem observed may only be a symptom of other problems upstream in the process. For example, an error that appears when calling up a computer record could be caused upstream when the information is entered into the computer, or mistakes in a customer’s bill may result from mistakes in the original order or any steps in between. Localizing directs the team to the part of the process that really needs improvement (p. 2-12).

In the instance of the particular group this team is analyzing, the problem can be summed up by stating that communication barriers currently exist between members of the group’s two divisions, the engineering and operations sides, respectively. Obstacles such as lack of formally-established migration process, coupled with barriers like a lack of fully understanding the jargon, needs, goals, and insights of colleagues on the other side of the group result in numerous inefficiencies that can easily be corrected by a commitment on the part of the team in adopting a charter. But Mathieu & Rapp (2009) take the team chartering process a step further, cautioning that establishing a charter alone will not necessarily lead to a high-performance team. Their research indicates that a team must not only have a quality charter in place to be of noteworthy caliber, but must also pair that charter with solid performance strategies, as well. They note that,

…we extend existing theory on team development by demonstrating that devoting time to laying a foundation for both teamwork (i.e., team charters) and taskwork (performance strategies) can pay dividends in terms of more effective team performance over time…Teams that developed either high-quality team charters or high-quality performance strategies exhibited less effective performance trajectories than did those teams that developed both high-quality charters and strategies (p. 99). 

Certainly, this is not meant to somehow downplay or undervalue the role of the charter in a team’s success – or lack thereof. Indeed, Robinson (2005) submits that, “Whether a team’s charter is…contingency planning for the entire organization or…limited in scope to problems that face its own members, taking the time to think through what happens during a crisis makes an enormous impact…” (p. 26).

In any case, there is no doubt that the inefficiencies brought on by these miscommunications can cost companies in major ways. Content (2012), in an interview he conducted with Johnson Controls CEO Steve Roell, noted that the company at one point, “…fell behind in its attempt to quickly launch new seating and interior components programs for multiple automakers simultaneously. Managers…going to go launch a new line were still dealing with operational challenges and last-minute changes sought by carmakers on another line…” (8D). In both cases, that of the group this team is analyzing and Johnson Controls, there appears to be a need for greater horizontal communication, a form of communication that, “…flows among coworkers and between different work units…its main purpose…coordination” (Kreitner & Kinicki, 2010, p. 418). “During this sideways communication,” Kreitner & Kinicki (2010) go on to state, “employees share information and best practices, coordinate work activities and schedules, solve problems, offer advice and coaching, and resolve conflicts” (p. 418).

References

Content, T. (2012, April 29). Johnson controls ceo takes long-term view. Milwaukee journal sentinel, pp. 1D, 8D.

Kreitner, R., & Kinicki, A. (2010). Organizational behavior (9th ed.). Boston, MA: McGraw- Hill/Irwin.

Mathieu, J. E., & Rapp, T. L. (2009). Laying the foundation for successful team performance trajectories: The roles of team charters and performance strategies. Journal of applied psychology, 94(1), 90-103.

Pentland, A. (2012). The new science of building great teams. Harvard business review, 90(4), 60-70.

Robinson, C. (2005). Prepared for the unexpected: Teamwork for troubled times. Journal for quality & participation, 28(1), 26-29.

Scholtes, P. R., Joiner, B. L., & Streibel, B. J. (2003). The team handbook (3rd ed.). Madison, WI: Oriel.

Wagstrom, P., Herbsleb, J. D., & Carley, K. M. (2010). Communication, team performance, and the individual: Bridging technical dependencies. Academy of management annual meeting proceedings, 1-7. doi:10.5465/AMBPP.2010.54500789

The Importance of Ethics in Corporate Accounting

By Aaron S. Robertson

The following is the author's contribution to a group paper submitted on December 12, 2012 for a class assignment in an accounting course. The author is currently pursuing a master of science in management degree from Cardinal Stritch University in Milwaukee.

Honest Accounting in the Best Interests of All

In remarks made before the NYU Center for Law and Business in New York on September 28, 1998, Arthur Levitt, then-chairman of the U.S. Securities and Exchange Commission, made a simple yet profound statement while discussing the long-term dangers of accounting tricks performed by companies both large and small, an observation that many seem to forget. He stated, “Our mandate and our obligations are clear. We must rededicate ourselves to a fundamental principle: markets exist through the grace of investors” (Levitt, 1998). Taking that statement from the chairman further, it can be argued that we are all investors – creators and sustainers of markets. Markets – whole economies – cannot exist without human beings. Therefore, each and every one of us is an economic actor. It is human beings that drive up the demand and value of raw materials, finished goods, and services – and vice-versa; that open bank accounts and invest in the stock and bond markets so that other individuals, as well as businesses and organizations, have the infusions of funds they need in order to go out into the world and drive innovation, make their own purchases, and ultimately create or help sustain jobs; that buy groceries, clothing, and an endless variety of consumer and dry goods at stores, which creates and sustains jobs starting at the storefront and reaching back through an infinite line of distributors, suppliers, and manufacturers; and that create entire new industries and niche markets through their hobbies, interests, and talents. Every dollar received by, and spent by, every human being, represents an investment of some kind.

Therefore, it truly is in the best interests of companies to conduct their accounting practices with the utmost integrity and transparency, for we as a society all have a vested interest in the success of a company, whether we are direct stockholders in a company or not. We are all actors and beneficiaries in the same economy, an economy that is becoming increasingly globalized and interconnected. In order to maintain a strong economy, then, with high levels of consumer confidence and money continuously transferring hands, companies need to be honest in their financial dealings. If they can do that, the long-term rewards will be great for everyone. If they cannot do that, and eventually find themselves in a situation where they may potentially fall as a result, jobs and sales are lost, and that is not good for anyone. As Levitt (1998) warns in his remarks:

For corporate managers, remember, the integrity of the numbers in the financial reporting system is directly related to the long-term interests of a corporation. While the temptations are great, and the pressures strong, illusions in numbers are only that—ephemeral, and ultimately self-destructive…relying on the numbers in a financial report are livelihoods, interests and ultimately, stories: a single mother who works two jobs so she can save enough to give her kids a good education; a father who labored at the same company for his entire adult life and now just wants to enjoy time with his grandchildren; a young couple who dreams of starting their own business. These are the stories of American investors (Levitt, 1998). 

Sadly, it seems that the chairman’s words of wisdom have gone unheeded. These remarks were given in 1998. 2001 saw the collapse of Enron due to fraudulent accounting practices, and 2008 bore witness to a number of corporate downfalls in the financial services industry, which sent shockwaves throughout world markets and led to “The Great Recession,” the effects of which are still being felt today.

References

American Accounting Association. (1998). The numbers game: Remarks by chairman arthur levitt securities and exchange commission. Retrieved December 11, 2012, from http://www.aaahq.org/newsarc/pr101898.htm

An Economic Analysis on the Region’s Manufacturing

By Aaron S. Robertson

The following is a paper submitted by the author on November 7, 2012 for a class assignment in an economics course. The author is currently pursuing a master of science in management degree from Cardinal Stritch University in Milwaukee.

Abstract

This student examines, from an economic point of view, the current thoughts and worries of U.S. manufacturers, particularly those in the states of Wisconsin and Illinois, and makes predictions for the manufacturing sector in the coming months.

Introduction

Recently, U.S. manufacturers have shown extreme caution in making key decisions, for a variety of reasons. Decisions have been held off or outright scrapped on things like new hiring, expansions, capital investments, and so on. In the following paper, this student will examine an article that reflects the worries of manufacturers in the states of Wisconsin and Illinois, specifically the southeastern portion of the former, and the northern part of the latter. The data used in the article is from October 2012.

The Article

An article written by Milwaukee Journal Sentinel reporter Rick Barrett, entitled, “Region’s manufacturing weakens,” and published on November 1, 2012, serves as the foundation for the following economic analysis. The article cites October 2012 figures by Marquette University’s Center for Supply Chain Management and the Milwaukee chapter of the Institute of Supply Management showing that manufacturers in southeastern Wisconsin and northern Illinois are cautious right now on a variety of key moves and decisions. The two institutions collaborate to compile the data monthly, publishing it in the form of a survey index. Any score above 50, according to the index, signals growth for that category, while a score below that threshold demonstrates decline in that area (Barrett, 2012).

Areas of concern that were looked at, according to the article, include [overall] industrial health, [overall] employment, blue-collar employment, white-collar employment, new orders, production measure, exports, and order backlogs. Each of these categories saw declines in score from the previous month, September 2012 (Barrett, 2012). The article cites the report as blaming this decline on both the broader downward spiral in the global economy, and, here at home, uncertainty in the political realm, as upcoming elections, which have since passed, were a source of anxiety. Hurricane Sandy is discussed, as well, with the article warning of the short-term economic consequences of the storm’s effects, but also leaving room for hope in a broader, long-term recovery.

Analysis

It will be interesting to see which way manufacturing trends in the coming months. This student is betting that manufacturing will see gains in the near future. With the elections now over, companies in all industries no longer have the convenient excuse at their disposal to hold off on capital and workforce investments until they find out which direction government, both at the federal and state levels, will go. Additionally, there is the strong potential for economic growth and opportunity as a result of the aftermath left by Hurricane/Superstorm Sandy on the east coast.

As the article points out, there is no doubt that there will be short-term economic ramifications as a result of the storm. This is a given. Countless residents are without homes; businesses of all kinds, as with homes, were damaged or outright destroyed; and infrastructure, including roads, power lines, and public transportation, took serious hits. Economic activity, for all practical purposes, has temporarily ceased:

Hurricane Sandy could have a negative effect on manufacturing as retail sales are temporarily slowed, electricity is out, and there’s damage to ports, railways, airports and roads. Some companies have temporarily closed factories until things are sorted out, resulting in a loss in productivity (Barrett, 2012).

However, despite this grim reality, there is hope from an economic standpoint. There will be a need to replace lost and damaged goods, buildings, vehicles, equipment, components, and infrastructure, and this fact creates significant opportunity for manufacturers and the construction industry, in particular, the article goes on to note. It has been said by many that crisis breeds opportunity – this storm, then, from a purely rational economic viewpoint, all emotions and thoughts on the human element of the storm in check, may be what the U.S. needs in order to prompt economic activity from a variety of directions: employers hiring, consumers and businesses buying, individuals making the plunge into entrepreneurship, and so on. Such a thought – such a fact – is not new. Many economists, historians, and government officials contend that it was the entry of the U.S. into World War II that finally pulled the country out of The Great Depression, led by manufacturing. So, to sum up, this student is confident that manufacturing will start to see gains in the coming months, largely as a result of the storm.

Beyond the storm’s effects on economic activity, however, there is also this notion of “pent-up demand” that has often come up in policy discussions and debates these last few years, in which consumers and businesses have been holding off on new big-ticket purchases for so long due to “The Great Recession,” that it cannot be much longer until replacement becomes necessary. Consumers and businesses have been looking to maximize the lives of just about anything and everything they can, ranging from vehicles to roofs and siding, and from electronics to appliances and tools, with many goods in between. Replacement of these items is inevitable. Finally, there is the simple fact that the economic data analyzed in the article is compiled monthly – the reports cited in the article should not be interpreted to represent long-term economic health.

Conclusions

In light of Superstorm Sandy, along with pent-up demand by both businesses and consumers caused by The Great Recession, and the fact that the U.S. elections have now passed, this student sees great opportunity for the manufacturing sector in the coming months, benefits that will naturally spill over into the construction industry, as well. There will be a need to replace an extensive variety of both components and finished goods as a result of both the storm’s aftermath and consumers’ eagerness to buy. It is simply inevitable. These factors will also assist companies in more easily making the key decisions that they have been placing on the back burner for some time. 

References

Barrett, R. (2012, November 1). Region’s manufacturing weakens. Milwaukee Journal Sentinel, Business pp. 1, 4.

State Minimum Wages

By Aaron S. Robertson

The following is the author's contribution to a group paper submitted on November 27, 2012 for a class assignment in an economics course. The author is currently pursuing a master of science in management degree from Cardinal Stritch University in Milwaukee. The group was assigned the task of arguing against a minimum wage, and the author, for his contribution, studied the effects of minimum wages set by individual states. 

Minimum Wage Laws Among Individual States in the U.S.

In addition to a minimum wage set at the federal level here in the United States, a number of individual states have chosen to enact their own minimum wage laws that exceed the federal level. Going even further, individual municipalities within states have set their own minimum wage laws. For purposes of this study, however, only minimum wage laws set at the state level will be examined. Currently, 18 states and the District of Columbia have minimum wage laws exceeding the current federal rate (U.S. Department of Labor, 2012).

At the beginning of 2012, a number of these states were scheduled to raise their minimum wages. Arizona, for example, increased its minimum wage to $7.65. Colorado went to $7.64, and also set a minimum of $4.62 for employees who receive tips. Washington State increased its minimum wage 37 cents at the beginning of 2012, to $9.04. Ohio has raised its minimum wage to $7.70, with employees who receive tips guaranteed $3.85. Ohio is unique, however, in that it keeps its minimum wage on par with the federal rate for employers that gross $283,000 or less per year. Employees aged 14 and 15 also receive the federal minimum of $7.25. Montana’s minimum rose to $7.65 at the beginning of 2012, an increase of 30 cents. Finally, Florida’s minimum wage increased to $7.67, with all employees in the state who are otherwise covered by the federal rate. This reflects an increase of 36 cents from the previous year. Also in Florida, tipped employees must be paid $4.65 by employers who meet requirements under the Federal Labor Standards Act’s tip credit provision of $3.02, so that these tipped employees are, in the end, also receiving $7.67. Many of these states make annual adjustments to their minimum wages, based on cost-of-living increases (Payroll Manager’s Letter, 2012).

The concept of a minimum wage set at the individual state level only serves to deal more anomalies, and hence problems, to the labor market. While this team does not advocate for even a minimum wage at the federal level, at least with a federal minimum wage, the playing field, so to speak, is even across the country, if nothing more than theoretically. A zero sum game is in play. But the involvement of state governments in setting wages complicates things far more so. With such a broad spectrum of minimal wage guarantees across the United States now, employers will naturally tend to flock to those states that do not have their own minimum wage laws on the books that exceed the federal rate. It is simply in the best economic interests of employers to do so. And because of this economic reality, the states with minimum wages set above the federal level are far more prone to unemployment and sluggish growth. This is not a new phenomenon. Research conducted by Campbell & Campbell (1969) found that:

…from 1950 to 1965, the average rate of unemployment in the major labor market areas with state minimum wage laws was higher than in areas without such laws on 78 out of 95 bi-monthly reporting dates and the same on four reporting dates. The average rates of unemployment shown are weighted by the size of the labor force in each major labor market area. For the entire period from 1950 to 1965, the rate of unemployment in areas with minimum wage laws was on the average approximately 0.6 percentage points higher than in areas without such laws, and the average ratio of unemployment in areas with minimum wage laws to that in areas without such laws was 113 percent (Campbell & Campbell, 1969, p. 324).

Proponents of state minimum wages, as with supporters of a federal minimum wage, argue that such a guarantee combats poverty, but the study by Campbell & Campbell (1969) on unemployment rates in relation to state minimum wages clearly demonstrates otherwise. Sowell (2007) puts the subject of minimum wages and unemployment this way:

By the simplest and most basic economics, a price artificially raised tends to cause more to be supplied and less to be demanded than when prices are left to be determined by supply and demand in a free market. The result is a surplus, whether the price that is set artificially high is that of farm produce or labor. Minimum wage laws are almost always discussed politically in terms of the benefits they confer on workers receiving those wages. Unfortunately, the real minimum wage is always zero, regardless of the laws, and that is the wage that many workers receive in the wake of the creation or escalation of a government-mandated minimum wage, because they lose their jobs or fail to find jobs when they enter the labor force. Making it illegal to pay less than a given amount does not make a worker’s productivity worth that amount – and, if it is not, that worker is unlikely to be employed (Sowell, 2007, pp. 210-211). 

Furthermore, in building on the work of Neumark and Adams and Adams and Neumark in 2003 and 2005, respectively, Clain, in her research, found no evidence supporting the claim that state minimum wages reduce poverty (2008, p. 206).

References

Campbell, C. D., & Campbell, R. G. (1969). State minimum wage laws as a cause of unemployment. Southern economic journal, 35(4), 232.

Clain, S. (2008). How living wage legislation affects U.S. poverty rates. Journal of labor research, 29(3), 205-218. doi:10.1007/s12122-007-9028-8

Sowell, T. (2007). Basic economics: A common sense guide to the economy (3rd ed.). New York: Basic Books.

States announce 2012 minimum wage amounts. (2011). Payroll Manager's Letter, 27(21), 3.

U.S. Department of Labor. (2012). Minimum wage laws in the states - January 1, 2012. http://www.dol.gov/whd/minwage/america.htm

Aaron S. Robertson

Aaron S. Robertson (1982-) is a freelance journalist and president of Muskego, Wisconsin-based Intrepid Innovations Inc., a firm specializing in Web and graphic design, search engine optimization, social media, online marketing, and copy writing, including press release writing and distribution.

Robertson is currently pursuing a master’s degree in management through Cardinal Stritch University in Milwaukee.

As an undergraduate student at Stritch, having graduated in 2007, Robertson earned a major in political science, minors in sociology and philosophy, a certificate in integrated leadership, and a non-credit certificate for a course in entrepreneurship. Among other accomplishments, he served as president of the student government, Model United Nations Club, and Philosophy Club, which he co-founded.

Robertson is author of the book, Beyond Majors and G.P.A.: A Real Philosophy for College and the World Ahead, which he wrote while still an undergraduate student.

Robertson got his professional start in journalism shortly after graduating from college in 2007, right around the time he and long-time friend Phil Burghgraef launched Intrepid Innovations.

In the nearly five years he has written professionally, Robertson has interviewed numerous elected officials, candidates for public office, public servants and professionals of all types, an extensive variety of business owners, entertainers and musicians, and plenty of regular, everyday people like himself who simply have a story to share. He even had his pen and notepad on hand for his 10-year high school reunion.

Robertson's photography caught the attention of The Buckinghams' publicist for his story on the Happy Together Tour's stop at the Wisconsin State Fair in August 2011.

Robertson is an active member in a number of service clubs and business networking organizations, and serves on a number of municipal boards and committees.

Learn more about Robertson by visiting his profile on the IMDb. 

Interviews with a regional or national interest:

• Branscombe Richmond, Hollywood television and film actor; stuntman. September 2011.
• Dr. Terence Roehrig, professor, U.S. Naval War College; Korea expert. December 2011.
• Carl Giammarese, lead singer, The Buckinghams; singer and songwriter. December 2011.
• Alyssa Bolsey, filmmaker; director, The Jacques Bolsey Project. December 2011.
• Godfrey Townsend, New York-based guitarist and singer. January 2012.
• Carl Bonafede, legendary Chicago radio personality, band manager, music promoter, record producer, and booking agent. January 2012.
• Doug "Cosmo" Clifford, drummer, Creedence Clearwater Revival and Creedence Clearwater Revisited (CCR). June 2012.
• Mark Dawson, lead vocals and bassist, The Grass Roots. September 2012.

An Analysis of BP’s Ethics

By Aaron S. Robertson

The following is an expanded version of a paper submitted by the author on September 12, 2012 for a class assignment. The author is currently pursuing a master of science in management degree from Cardinal Stritch University in Milwaukee.  

Abstract

Relying on a combination of academic research, news articles, and his own reflections and insights into business, economics, and politics, this student examines the ethics and decision-making processes of BP, formerly known as British Petroleum.  

Introduction

BP, formerly known as British Petroleum, has, as Thorne, Ferrell, and Ferrell (2011) point out, “…experienced a lot of ups and downs over its hundred-year history” (p. 586). At times over this long and bumpy course, the company has earned the praise of many stakeholders, including the media, the research community, shareholders, government leaders, and the average everyday consumer of its gasoline and petroleum products, only to earn their scorn shortly thereafter, with a repeating cycle of sorts. In the following paper, this student will utilize a combination of academic research, news articles, and his own reflections and insights to analyze BP’s ethics and conduct over the years.

Analysis

There is no doubt that BP has mixed results when it comes to showing goodwill to its stakeholders and enforcing ethical, and, quite frankly, simple, commonsense behavior. In response to a large number of past incidents and scandals involving spills, neglect, explosions, employee injuries and deaths, indictments and other run-ins with the law, lawsuits, and major fines, the company issued a comprehensive code of conduct in 2005 for all its employees across the world, a sweeping, first-of-its-kind undertaking for the firm. As Thorne et. al. (2011) points out, “…the code seeks to unite its diverse employees behind a set of universal standards of behavior…regardless of location, culture, and language…a one-stop reference and guide to individual behavior at BP…everything from health and safety to financial integrity” (p. 592). Ironically, however, two oil leaks occurred at BP’s facility in Alaska in 2006; the first one in March, and the second occurring five months later, in August. Thorne et. al. notes that it was soon discovered that the regular cleaning of these pipes was not occurring, a process that is simple to conduct, should have been routine, and could have easily prevented these incidents from happening (2011, p. 588). Tragically, another incident occurred in Alaska just a little more than a year later, in October 2007 - “This time it was 2,000 gallons of toxic methanol, a deicing agent, that spilled into the tundra and killed many plants and animals,” Thorne et. al. cites (2011, p. 588).

Flashing forward to April 20, 2010, an explosion and ensuing fire occurred at the company’s Deepwater Horizon rig in the Gulf of Mexico. Approximately 17 people were injured during this catastrophe, and 11 went missing (Guardian research, 2010). The resulting oil leak lasted approximately three months, and the findings of a study conducted by scientists released on September 23 placed the estimated amount of oil spilled into the gulf at around 4.4 million barrels (Guardian research, 2010).

Further fanning the flames, so to speak, were a number of public relations mishaps that came to portray company leaders as insensitive and, at times, even catching them in outright lies to the public during the Gulf of Mexico spill. For example, then-chief executive Tony Hayward, in a statement on May 30, caused widespread anger when he told reporters, “There's no one who wants this over more than I do. I would like my life back” (Guardian research, 2010). He was seen less than a month later, on June 20, at a yacht race with his son, and developed a reputation for not appearing at meetings and functions with government and industry leaders (Guardian research, 2010). Additionally, it was learned on July 21 that the company admitted, “…to using Photoshop to exaggerate the level of activity at the Gulf oil spill command centre. The picture, posted on the company's website, shows staff monitoring 10 giant video screens. In reality, three of the screens were blank” (Guardian research, 2010).

It was reported on January 6, 2011 that a commission put together by The White House reached the conclusion that the Gulf spill was caused by, “ …systematic management failure at BP, Transocean and Halliburton” (Guardian research, 2010).

Finally, in August 2012, in what is perhaps the latest incident to plague BP, motorists in four states purchased bad gasoline, forcing the company to recall the affected gas supply and begin paying out claims on car repairs. According to a news station that reported on the recall, the gas contains, “high levels of a polymer residue” and affected cars in Wisconsin, Illinois, Indiana, and Ohio (WLS-TV Chicago, 2012). In a statement on a Web site that BP set up in order to address the situation and encourage affected customers to submit claims, the company states, “We have significantly increased our normal testing and sampling program throughout our Whiting distribution system to verify the fuel BP sells meets our rigorous quality standards” (BP p.l.c., 2012). With a past track record of poor management and not following basic procedure, one is unfortunately forced to wonder what “normal testing and sampling” actually means.

To its credit, BP has attempted to repair its image over these past few years. Thorne et. al. notes the resentment many stakeholders had come to hold against, not only BP, but the entire industry, coming into the twenty-first century, stating:

The twenty-first century found stakeholders more wary of companies, especially after decades of repeated violations and misconduct on the part of the oil industry. Oil leaks, toxic emissions, dead animals, refinery fires, wars in the Middle East, rising gas prices, pollution, and dwindling supplies all have combined to paint a very ugly picture of the oil industry as a whole (2011, p. 589).

These efforts at reputation repair by BP have included, among others, more investments in alternative energies like solar power and biofuels; developing technologies that trap carbon emissions, known in industry jargon as carbon sequestration; and launching a number of programs and initiatives designed to teach high school students and others the importance of sustainability (Thorne et. al, 2011, pp.589-592). A simple glance at its main Web site highlights BP’s efforts to get it right, so to speak, with its various stakeholders around the world (BP p.l.c., n.d.). However, even with these various initiatives, as meaningful as they are, one still wonders how truly loyal to procedure, policy, and the collective good some BP employees really are, given how so many seemingly-avoidable incidents have occurred since the company’s ground-breaking 2005 code of conduct. With each catastrophic event comes ramifications for each of the company’s stakeholders, which include partner firms, franchise owners, shareholders, scientists and researchers, governments, and countless retail consumers across the globe, among others.

The Gulf of Mexico Spill Enters the Political Arena: A Personal Experience

In June 2010, this student attended the Democratic Party of Wisconsin’s (DPW) annual convention as a delegate. Held in Middleton, Wisconsin that year, a resolution concerning BP was approved by the convention, stating the following:

WHEREAS, on April 20, 2010 an explosion of a BP leased oil rig led to an unabated flow of oil into the Gulf;
WHEREAS, the spread of oil has led to the destruction of small businesses, livelihoods, and ecosystems; WHEREAS, the total costs will be billions of dollars and last for decades; and,
WHEREAS, BP appears negligent for making irresponsible decisions and not taking effective precautions;                                                                         THEREFORE, RESOLVED, the DPW calls on the Obama administration to hold BP responsible for all costs relating to the spill and calls on all Americans to boycott BP (Democratic Party of Wisconsin, 2010).

This student, one of only what appeared to be a handful of moderates on this issue, voted in the “nay” on the final vote, clearly in the minority (Robertson, personal communication, September 2012). At the time, this student’s reasoning, which remains the same today, was deeply concerned with the final line of the resolution calling on all Americans to boycott BP. While it is understandable to be angry at BP officials for their negligence, incompetence, and insensitive handling of some major situations, we as a country need to understand that the BP business model – and this line of reasoning should be applied to any major, well-known corporation – not only consists of a corporate-level entity that’s handing down policies, procedures, and the like, but includes independent franchise owners, as well, and many at that.

While those who called for a blanket boycott on BP may genuinely feel that this is the best way to get the company to finally listen to their grievances and get its act together, so to speak, they are not taking into account the franchise owners and their own employees who would become innocent victims by such an act. Many of these franchise owners are hard-working, middle-class, average, everyday people, just like many of those who called for a boycott. These franchise owners are not wealthy oil executives. They are small business owners who reside in our communities and who simply want to experience the dream of owning a business.

These independently-owned businesses support little league teams, help sponsor community events, serve as hubs for local news and information, and so much more. Additionally, they rely on other businesses for a variety of operational needs, ranging from food and beverage vendors to credit card processors, and from cleaning supply merchants to information technology (IT) providers, with many kinds of businesses in between. A boycott, then, would have damaging effects on both individual communities and the broader economy. Of course, with BP being a multinational company in an increasingly globalized economy, one can only imagine both the political fallout and the economic ramifications across the globe, not just here in the United States, if a serious, well-organized boycott threat were to actually take hold. This is the position that leaders at the corporate level could have easily put their franchise owners in because of their inability to effectively manage and communicate, as well as their failure to comply with routine safety checks and procedures. And there can be no doubt that countless individuals went ahead with their own self-imposed boycott during this tumultuous time, likely impacting franchises around the world anyway, however small that impact may have been.

Conclusions

Though BP has made seemingly-sincere efforts these last number of years to portray itself and the broader oil industry in a more positive light, it is clear that additional progress in the areas of ethical management, enforcement, and communication must be made. This is especially true given the fact that a number of catastrophic events, which appear to have been easily preventable, happened after a sweeping commitment by the company in 2005 to overhaul its code of conduct. Being a multinational corporation in an ever-increasing global marketplace, every incident brings with it ramifications for all of its stakeholders across the world, producing a domino effect that the company simply cannot afford if it wishes to foster goodwill and remain an industry stalwart.

References

BP p.l.c. (2012). Station lists. Retrieved from http://www.bpresponse.com/go/doc/5207/1525999/

BP p.l.c. (n.d.). Sustainability. Retrieved from http://www.bp.com/sectionbodycopy.do?categoryId=3311&contentId=7066754

Democratic Party of Wisconsin (2010, June 12). Democratic party of wisconsin 2010 resolutions approved by convention June 12, 2010. Retrieved from http://www.wisdems.org/about/issues/

Guardian research. (2010, July 22). BP oil spill timeline. The Guardian. Retrieved from http://www.guardian.co.uk/environment/2010/jun/29/bp-oil-spill-timeline-deepwater-horizon/

Thorne, D.M., Ferrell, O.C., & Ferrell, L. (2011). Business & society: A strategic approach to social responsibility & ethics (4th ed.). Mason, OH: South-Western Cengage Learning.

WLS-TV Chicago, IL (2012, August 29). BP releases list of stations with bad gas in recall. Retrieved from http://abclocal.go.com/wls/story?section=news/local&id=8790677/

Learning vs. Productivity: An Analysis of Managing Multiple Team Memberships within an Organization

By Aaron S. Robertson  

The following is an expanded version of a paper submitted by the author on May 2, 2012 for a class assignment. The author is currently pursuing a master of science in management degree from Cardinal Stritch University in Milwaukee.  

Abstract

The author reviews an article by O’Leary, Mortensen, and Woolley (2011) on the potential implications of multiple team membership. Next, relying on a combination of personal experience, anecdotal evidence, and further academic research, the author analyzes the article and offers suggestions for further research into the effects of multiple team membership.

Introduction

One may assume that serving on multiple teams within an organization carries many advantages  – staying connected with the larger picture that is the organization as a whole, fostering collaboration, enhancing communication, laying a foundation for further networking opportunities, and cross-pollinating the organization with one’s specialized knowledge and skill sets. But can there come a point in which multiple team memberships actually pose an adverse effect on an organization?

In the following paper, this student reviews an article by O’Leary, Mortensen, and Woolley (2011) that takes a look at the effects of multiple team membership in relation to learning and productivity taking place in an organization. Next, he will analyze their work within the context of personal experience, anecdotal evidence, and further academic research. He will close by offering a number of suggestions for future research into the effects of multiple team memberships on organizations.

A Review of the Literature

O’Leary et. al. (2011) argue that, “Organizations use multiple team membership to enhance individual and team productivity and learning, but this structure creates competing pressures on attention and information, which make it difficult to increase both productivity and learning” (p. 461). To overcome this, the authors propose a model, “…guided by attention and social network theories, which are particularly useful because people have increasingly unlimited access to information (through new technologies and rapidly widening networks) but limited abilities to attend to and process that information” (O’Leary et. al., 2011, p. 461). Utilizing these theories, the authors assert that, “…carefully balancing the number and variety of team memberships can enhance both productivity and learning” (O’Leary et. al., 2011, p. 461).

Analysis

This student ultimately concurs with the authors in their conclusions that, while serving on multiple teams within an organization may increase learning across the organization, it also has the potential to seriously hamper productivity. While this student admittedly does not yet have any significant, worthwhile experience serving on multiple teams within a single organization, he does have considerable insights gained by simultaneously serving on multiple teams of multiple organizations: as a board member of the Hales Corners Chamber of Commerce; an ambassador of the Muskego Area Chamber of Commerce; a member of the leadership team of a business networking group; a member of a Muskego Area Chamber of Commerce committee that partners with Muskego High School in order to provide additional learning and experiential opportunities for business students; and municipal government service that includes memberships on the city of Muskego’s Library Board and Zoning Board of Appeals. Additionally, this student is a recent past president of the Muskego Kiwanis Club. This student believes that the fact that he lacks meaningful experience serving on multiple teams within a singular organization is irrelevant here. The principles and experiences are ultimately no different, he would contend.

Many of the teams this student serves on are a part of community-based organizations that all have similar needs: fundraising, or some sort of revenue generation; public relations; marketing; membership; events planning; etc. From a learning standpoint, this student can attest that he has been able to transfer meaningful insights and knowledge gained from his service on these teams to other teams for their own benefit, and vice-versa. Likewise, he has seen his team members bring their own expertise in from their work with other teams and organizations. However, this student can also attest that he has seen both his personal productivity, as well as the productivity of other team members, decreased as a result of these multiple team memberships. Speaking for himself here, this student acknowledges that, while he is learning and transmitting this knowledge to other teams, he has, through the years, come to a self-realization on more than one occasion that he would not be able to do these teams, and hence the larger organizations they serve, full justice, from the facet of productivity, if he does not scale back his involvement to a degree.

Certainly, none of this is to suggest that serving on a team or that learning in an organizational sense are somehow pointless or of little value, and the authors would not say that, either. On the contrary, it is well-known that the literature extolling the benefits of teams and of organizational learning is vast, rich, and diverse. Kreitner & Kinicki (2010), in offering their definition of a learning organization, state that it is “…one that proactively creates, acquires, and transfers knowledge and that changes its behavior on the basis of new knowledge and insights” (p. 507). The authors go on to describe the characteristics of learning organizations, pointing out that they:

 …strive to reduce structural, process, and interpersonal barriers to the sharing of information, ideas, and knowledge among organizational members…Learning organizations are results oriented. They foster an environment in which employees are encouraged to use new behaviors and operational processes to achieve corporate goals (Kreitner & Kinicki, 2010, p. 507).

Noe, Hollenbeck, Gerhart, and Wright (2010) offer their own take, from more of a human resources standpoint, on learning organizations, defining the term to mean an organization, “…in which people continually expand their capacity to achieve the results they desire” (p. 97). They elaborate in further detail, suggesting that, “This requires the company to be in a constant state of learning through monitoring the environment, assimilating information, making decisions, and flexibly restructuring to compete in that environment. Companies that develop such learning capability have a competitive advantage” (Noe et. al., 2010, p. 97). Scholtes, Joiner, and Streibel (2003) devoted an entire book to the topic of teams, opening their first chapter with a powerful statement on the role that teams play in the modern organization:

To succeed, organizations must rely on the knowledge, skills, experience, and perspectives of a wide range of people to solve multifaceted problems, make good decisions, and deliver effective solutions. This is where dynamic, productive teams can make the difference. Teams create environments in which members can keep up with change, learn more about the organization, and develop collaborative skills (p. 1-1).

Power (2012), speaking of the “silo” effect, and in arguably a justification here for multiple team memberships, notes that:

The only way to sustain improvement in a cross-organizational process is for workers in the process to see it from end to end. Only by understanding the entire flow and logic can they uncover huge opportunities for improvement. And only by collaborating with other process workers can they implement the changes.

As meaningful as teams and organizational learning may be, however, one can understand the practicality of the learning-productivity dilemma caused by multiple team memberships, at least to a certain degree, and as seemingly an odd paradox as it might be. Learning, put in simple terms here, is meant to increase efficiency and effectiveness, in both an individual’s personal life and pursuits, as well as in an organization. But it can come to a point where one serves on so many teams that one’s time is largely spent sitting in meetings engaging in debate, dialogue, and the sharing of ideas and knowledge, rather than utilizing the acquired knowledge and insights in order to implement improvements to processes and outcomes – in other words, and in short, being productive. Pentland (2012), in research he and his team conducted on the subject of communication in teams, “...found that the best predictors of productivity were a team’s energy and engagement outside formal meetings. Together those two factors explained one-third of the variations in dollar productivity among groups” (p. 62). Wagstrom, Herbsleb, and Carley (2010) note that, “…a community member may be very active on discussion forums and mailing lists, but may have problems getting actual work done because those conversations do not address the actual technical coordination issues at hand” (p. 5).

Suggestions for Further Research

This student believes that further research into the implications that multiple team memberships pose on organizations is critically necessary, as there remains a lot in this subject that has yet to be discovered. O’Leary et. al. (2011) acknowledges this throughout their work, essentially stating that this is largely an untapped niche in the available literature on teams. This student finds it somewhat perplexing that, up to this point, there has been so little research conducted on this subject. With organizations increasingly turning to the team model in order to accomplish objectives and cultivate talent, one would think that this field of study would have more prominence in the business literature.

In particular, this student, after his reading and interpretation of O’Leary et. al. (2011), is left wondering whether or not the loss of productivity that occurs within an organization as a result of multiple team memberships is only a temporary anomaly, with productivity levels rebounding at some point, and even taken to new heights. Learning, by its inherent nature, is intended to improve, however one chooses to define that term. So while it is undoubtedly plausible to see a temporary loss in productivity as the result of spending a significant amount of time in the acquiring and sharing of knowledge and information through service on multiple teams, this student sincerely suspects that the quality of this transferring of wisdom would allow the organization to eventually catch up with this productivity gap, with the ultimate goal of exceeding it once it is closed.

Conclusions

Serving on multiple teams within an organization can have many advantages. One of the key advantages is an increase in learning for all in the organization. However, as O’Leary et. al. (2011) found, there is the potential for decreased productivity as this increase in learning is taking place. Finding the proper balance to successfully manage multiple team memberships is critical for the overall health and vitality of the organization. Utilizing a rich mix of personal experience, anecdotal evidence, and additional academic research, this student ultimately arrives at an agreement with the findings of the authors. However, he believes that further research into the effects of multiple team memberships within an organization is needed.

References

Kreitner, R., & Kinicki, A. (2010). Organizational behavior (9th ed.). Boston, MA: McGraw-Hill/Irwin.

Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright P. M. (2010). Human resource management (7th ed.). New York: McGraw-Hill/Irwin.

O'leary, M., Mortensen, M., & Woolley, A. (2011). Multiple team membership: A theoretical model of its effects on productivity and learning for individuals and teams. Academy of management review, 36(3), 461-478. doi:10.5465/AMR.2011.61031807

Pentland, A. (2012). The new science of building great teams. Harvard business review, 90(4), 60-70.

Power, B. (2012, April 9). Get your team to work across organizational boundaries. Posted to http://www.hbr.org

Scholtes, P.R., Joiner, B.L., & Streibel, B.J. (2003). The team handbook (3rd ed.). Madison, WI: Oriel.

Wagstrom, P., Herbsleb, J. D., & Carley, K. M. (2010). Communication, team performance, and the individual: Bridging technical dependencies. Academy of management annual meeting proceedings, 1-7. doi:10.5465/AMBPP.2010.54500789

Patagonia Inc. and its Franciscan Values

By Aaron S. Robertson

The following is a paper submitted by the author on February 22, 2012 for a class assignment. The author is currently pursuing a master of science in management degree from Cardinal Stritch University in Milwaukee.

Abstract

The author analyzes Patagonia Inc., a Ventura, California-based company, in the context of Franciscan Values, demonstrating that it is possible to work for monetary gain while remaining within the boundaries of an ethical and moral framework that sees the value and dignity of each employee and the world beyond.

Introduction

In the world of business, more and more companies are starting to realize the value that comes with operating within an organizational culture that encourages, nay, demands, excellence through lifelong learning, ethics, and a view of the world that acknowledges, and attempts to address, concerns that do not necessarily affect the company or its bottom line. One of these companies is Patagonia Inc., based in Ventura, California. The company has become well-known for the progressive philosophy it espouses when it comes to the way it deals with its employees and the broader world, which has resulted in its abilities to attract and retain both a loyal customer following and top talent among its employee ranks.

In the following paper, this student will offer an overview of Patagonia Inc. and analyze the company through the lens of Franciscan Values and sound business practices that help it retain competitive advantage.

Overview of Patagonia Inc.

Patagonia Inc., founded by environmentalist Yvon Chouinard and in business for 35 years now, is a retailer of outdoor equipment and clothing. When Chouinard, who is still active in the business, started the company, he had a vision for it that would combine a love for lifelong learning, a fun workplace, a deep appreciation and respect for the environment, and an overall human resources strategy that would bring out the best in each and every employee through benefits, incentives, and other opportunities that would render it a difficult decision to want to leave the company (Kreitner & Kinicki, 2010, pp. 30-31).

Patagonia, in addition to providing health insurance to all of its employees, whether they are working full- or part-time, also offers a daycare facility on the campus of its corporate headquarters in Ventura. Employees also have an opportunity to take sabbaticals for up to two months – at full pay – on the condition that they work for environmental organizations during that time. College tuition reimbursement of up to 50% is also available for employees wishing to pursue a degree path in the earth/environmental sciences realm (Kreitner & Kinicki, 2010, p. 30). With these kinds of programs and opportunities in place for its employees, it is no wonder, then, that Patagonia is taking in on average some-900 resumes per job opening (Kreitner & Kinicki, 2010, p. 31). Lisa Myers, an employee of the company, notes that, “It’s easy to go to work when you get paid to do what you love to do” (Kreitner & Kinicki, 2010, p. 30).

A Look at Patagonia Inc. Through the Lens of Franciscan Values

What has become known as the Franciscan Values has its roots in the teachings and guiding philosophy of St. Francis of Assisi (Italy). Francis Bernardone, who lived from 1182-1226, is not only revered in the Roman Catholic Church, but also highly regarded by other Christian denominations, as well, for his humility, sincerity, passion for the teachings of Jesus, devotion to the poor, and love for all creatures and peoples (Office of Mission and Identity of Cardinal Stritch University, 2002, pp. 9-10). The four core Franciscan Values are creating a caring community; showing compassion; reverencing all of creation; and making peace (Office of Mission and Identity of Cardinal Stritch University, 2002, p. 4).

In analyzing the corporate philosophy of Patagonia, it is clear that the company espouses at least three of the Franciscan Values, with the fourth one, that of making peace, not so clear-cut, but arguably likely. Patagonia creates a caring community by treating its employees with the utmost respect and dignity through such means as providing health insurance regardless of full- or part-time status, and also by making available on-site daycare for the children of employees at its headquarters. Taking this concept of a caring community further, the company takes every opportunity to aid in developing the full and true potential of each employee, not just in terms of the employer-employee relationship, but simply in human terms – as human beings with unique interests, talents, and goals. Patagonia accomplishes this through various educational, volunteer, and training opportunities that might not necessarily have anything to do directly with the company’s operations, but rather lead to a more well-rounded and enlightened person in a broader context. The company demonstrates the showing of compassion and the reverencing of all creation by advocating for positive social change, acting as a caretaking steward of resources rather than as an indiscriminate consumer, and working to not only preserve the environment, but also to teach others about the importance of preservation.

Further Analysis

The Franciscan Values, though originating from a saint of the Roman Catholic Church, are universal, in the sense that it does not matter one’s own guiding religious beliefs or philosophy – they are easy to understand and appreciate as mere human beings with the ability to reason and feel. However, those searching for a more secular analysis of Patagonia’s guiding principles and resulting corporate culture need not look further than what are known as The Magnificent Seven: General Moral Principles for Managers, developed by Kent Hodgson. These seven principles are dignity of human life; autonomy; honesty; loyalty; fairness; humaneness; and the common good (Kreitner & Kinicki, 2010, p. 24).

Patagonia would be classified as a company that subscribes to a management philosophy known as Theory Y. The set of beliefs that constitute Theory Y were formalized by Dr. Douglas McGregor. Managers subscribing to this viewpoint see employees as naturally motivated, eager to take on responsibility, and willing to use their skill sets for the good of the organization if simply allowed to do so. Contrast this philosophy with what has become known as Theory X, also formally spelled out by McGregor. Theory X assumes the polar opposite of employees (Jones & George, 2011, pp. 58-59).

With its commitment to the environment and the many opportunities it provides its employees, Patagonia has managed to develop a loyal customer base and attract some of the best talent available. Its employee incentives, highly desirable, especially in an overall tough economic and job climate, make it difficult for employees to want to look for other employment opportunities. These rewards and incentives, many of which are not typically seen at other companies in corporate America, alone are enough to keep employees motivated and striving to be their best.

Conclusions

In a capitalistic society, it is possible for a company to work for monetary profit while simultaneously being conscious and mindful of the larger world. Patagonia Inc. has demonstrated in its three and a half decades in business that being in business is not a necessary condition for disregarding an ethical and moral framework that takes into account how one’s actions can come to have a far-reaching impact on many others.

Because of its unwavering principles, Patagonia has been able to attract and retain many loyal and satisfied customers, as well as employees. And when a company can accomplish both of these feats, the result is a business that will see not only profits, but longevity and sustainability, as well. Working within ethical principles that take into consideration the larger world is simply good for business.

References

Jones, G. R., & George, J. M. (2011). Contemporary management (7th ed.). New York: McGraw-Hill/Irwin.

Kreitner, R., & Kinicki, A. (2010). Organizational behavior (9th ed.). Boston, MA: McGraw-Hill/Irwin.

Office of Mission and Identity of Cardinal Stritch University. (2002). Catholic franciscan values. Milwaukee, WI: Cardinal Stritch University.

An Analysis of Management By Objectives (MBO)

By Aaron S. Robertson

The following is a paper submitted by the author on February 8, 2012 for a class assignment. The author is currently pursuing a master of science in management degree from Cardinal Stritch University in Milwaukee.

Abstract

This student, relying on a unique combination of academic research, personal work experience, and anecdotal evidence, demonstrates why the performance management system known as Management By Objectives (MBO), as it currently stands, is not the best indicator of an employee’s worth and potential to an organization, and has the ability to severely harm customer service.

Introduction

In the world of business, many kinds of systems exist that are used to track and evaluate an employee’s performance and contributions to the organization. Depending on what type of business or industry is being discussed, some systems tend to be preferred over others and are hence more prevalent in that kind of work.

In the following paper, this student will address one of these typical performance management systems, known as Management By Objectives (MBO). He will begin by offering a brief overview of MBO, which is typically seen in organizations with a strong sales-driven environment, and what it looks for when analyzing an employee’s performance. Next, he will discuss its benefits and shortfalls. He will then close by proposing one major improvement to MBO in order to increase the credibility, reliability, and validity of this system. Throughout the paper, he will turn to academic research, personal work experience, and anecdotal evidence to explain and justify his position.

Overview of MBO

Management By Objectives (MBO), in short, is a performance management system that tracks and ultimately evaluates employee performance strictly by numbers-driven goals and results. Noe, Hollenbeck, Gerhart, and Wright (2010) admirably explain this system in more elaborate detail, stating that it, “…focuses on managing the objective, measurable results of a job or work group. This approach assumes that subjectivity can be eliminated from the measurement process and that results are the closest indicator of one’s contribution to organizational effectiveness” (p. 375).

An example of a typical MBO scenario can be found in the financial services industry. The agent, broker, or sales professional may have two goals that she or he must meet within the review period: increase the value of the portfolio she or he is managing by a pre-determined percentage, and/or take in a pre-determined dollar amount in fee revenues (Noe et. al., 2010, p. 376).

The Benefits of MBO

Noe et. al. (2010) points to 70 studies that took a look at MBO, of which 68 demonstrated gains in productivity, as strong evidence demonstrating the success rate of this particular performance management system. Additionally, “…productivity gains tend to be highest when there is substantial commitment to the MBO program from top management: an average increase of 56 percent when commitment was high, 33 percent when commitment was moderate, and 6 percent when commitment was low” (p. 376).

Shortfalls of MBO

Despite the advantages of the MBO performance management system, it does not come without its flaws and limitations. Noe et. al. (2010) points out that this system does not take into consideration circumstances beyond the control of the employee, such as difficult economic times. Also, while it may be true that there is feedback being given to the employee throughout the review period, that feedback may not provide any insights or suggestions as to how the employee can actually improve performance to meet the desired outcome(s). Furthermore, employees under MBO may be sacrificing facets of the job that are not being measured, such as customer service, in order to focus on the aspects that are coming under scrutiny (p. 378).

But beyond these flaws, it can be argued that certain elements of the Theory X management viewpoint appear to also come into play in an MBO scenario. This philosophy was conceived by Douglas McGregor. Managers who embrace the Theory X view tend to assume that their employees are unmotivated and even outright lazy, are always searching for ways to avoid taking responsibility, and, in general, dislike their work (Jones & George, 2011, pp. 58-59). If an employee falls short on meeting the targeted, objective goals, it would make it easy for a Theory X practitioner to easily and quickly conclude that the employee was not doing enough to meet said goals – in other words, it becomes a justification to accuse the employee of laziness, etc.

The management philosophy of Theory Y stands in stark contrast to the Theory X mindset. Theory Y, also formalized by McGregor, dismisses the ideas that employees are intrinsically unmotivated and afraid to assume responsibility and take action. Employees, under this viewpoint, may possess a variety of other skills that can be used somehow for the betterment of the organization, and they are eager to, if presented with the opportunity(ies), work for its good (Jones & George, 2011, pp. 58-59). For this student, this presents a major flaw in the MBO system, as it does not fully encapsulate the worth and value that an employee can have to an organization.

Returning to the missing puzzle piece of customer service and accountability, employees working within the framework of MBO may feel pressured to cut corners in these areas in order to meet the goals laid out by the organization. Sitkin, See, Miller, Lawless, and Carton (2011) spell out the potential harm that can occur in some of the more extreme cases, noting,

Moving from merely difficult goals at the individual level to the case of stretch goals at the organization level, the ethical implications could be amplified. The seeming impossibility of achieving stretch goals using ordinary means could easily slip into the seductiveness of using extraordinary means, such as falsifying records (p. 562).

Along these lines, albeit minus the falsifying of records, this student recalls some years ago being approached by a friend who had recently gotten into the insurance business. With the pressure mounting on him to fulfill his quarterly sales quota, he in turn applied pressure on this student, along with many other friends, family members, and business associates, to buy a policy from him, even if a legitimate need did not exist, and even if there was not a consultation involved to attempt to identify a need. He was not concerned if a policy was dropped shortly after, so long as it was purchased within this particular quarter (Personal communication, May, 2009). It quickly became evident that carrying his employment into the next quarter trumped quality customer service, which could have developed into long-term, rewarding, and mutually beneficial business relationships over time, with both repeat and referral business coming his way. In this sense, MBO is flawed, in that it seeks immediate gain while sacrificing long-term vision, stability, and sustainability.

In a similar situation, this student recalls having a more recent conversation with another friend who is a banker. The banker told this student that it did not matter if an account was closed shortly after; as long as it was opened in the first place, it would count toward the banker’s quarterly sales goals, and that’s all that mattered (Personal communication, December, 2011).

With this mindset, which is also demonstrated by this student’s friend in the insurance business, this student finds himself questioning if such short-term goals are really worth it to the organization. It takes time and money, in supplies and in labor, to process applications, deliver policies, open accounts, etc. Is it worth it to the organization if many of these account and policy holders turn out to be economically unviable, with their accounts and policies being closed or dropped shortly after being opened, or lingering on largely unfunded? This student has serious reservations.

What occurred at Sprint Nextel speaks volumes to how an MBO system can come to severely impact customer service and the longevity of accounts (Noe et. al., 2010, p. 402). Sprint and Nextel merged in 2005. Shortly after, the company put in place strict call center quotas that placed far more emphasis on number of calls answered over the quality of those calls. In other words, employees were pressured to keep all calls short, even if it meant the questions and concerns expressed by customers in those calls went unanswered, whether fully or partially. Paula Pryor, a former employee of Sprint Nextel, explained the impact this way: “…the numbers-driven management approach implemented after the combination led to poor morale and deteriorating customer service. Even bathroom breaks were monitored. ‘They would micromanage us like children’” (Noe et. al., 2010, p. 402).

Another situation shedding light on the insurance business specifically, and MBO in broader terms, occurred not long ago, when a business associate of this student was dismissed from his insurance agency for missing his annual sales quota by, according to his memory, “four or five policies” (Personal communication, January 2012). This man told this student that he valued customer service highly, and took as much time as necessary to explain to his clients and prospects exactly what they were getting into (Personal communication, January 2012). This is an example where this man may have possessed other abilities that could have benefitted this organization, yet, because of the MBO nature of the business and larger industry, he was dismissed on numbers alone. This system, as is currently practiced, does not take into consideration the quality, longevity, and economic viability of the policies and client relationships that resulted from this agent’s employment with the organization.

Finally, this student was employed in the car sales business for a short period of time. This business relies exclusively on MBO metrics. For this student, who has an extensive background in online marketing, it did not matter that the dealership this student was employed at had a need for a more robust online presence, which could have directly led to increased sales for the dealership as a whole. This student was hired as a salesperson. And it did not matter how much time he took with his customers and prospects in order to demonstrate a great customer service experience. Only actual sales mattered. The pressure was felt to cut that time spent accommodating questions and concerns, and to attempt to get them in a vehicle as quickly as possible. This student did not receive any meaningful feedback that would help him identify areas in which he could focus on for improved performance. He left the business voluntarily after a short while.

A Proposed Improvement to MBO

MBO, as it currently stands, offers a quick, easy-to-understand look at hard numbers and whether or not these goals are being achieved by employees who undergo this system of review. However, as previously explained, this performance management system only looks at immediate or short-term goals, as opposed to long-term objectives, and it only looks at hard sales data, not taking into account the human element or circumstances beyond the control of the organization or employee. Due to this short-sightedness, such a system could potentially damage, even destroy, opportunities for further growth, both because the deliverance of customer service is not taken into account and employees who may possess other talents and skills that could benefit the organization are being held only to these hard goals, potentially resulting in the termination of their employment if they fail to meet them. Furthermore, employees are not receiving vital feedback under this kind of performance management system that could help them improve their performance. It is this element, feedback, that this student wishes to respectfully submit as a major improvement to the MBO performance management system, particularly as it relates to customer service.

The value of feedback, in any organization or situation, cannot be overstated. Spreitzer & Porath (2012) name performance feedback as one of their four ingredients needed in order to create an environment that allows employees to truly thrive and realize their full potential. Walla (2011) submits that a quality performance evaluation will not only take into account what employees have (or haven’t) accomplished, but what they will do heading into the future in order to improve. Clausen, Jones, and Rich (2008) reinforce this by stating, “An effective system of evaluating job performance should accurately outline employees' responsibilities and contributions to an organization, motivate employees, and provide valid and important input in personnel decisions” (p. 64).

There is so much opportunity that can be capitalized on by merely incorporating some sort of feedback into the MBO model. Noe et. al. (2010) points out that, “While many companies use performance management to manage employee performance, less than 25 percent…use performance management to help manage talent through identifying training needs and developing leadership talent” (p. 352). The MBO system, as it is currently laid out, fails to take advantage of these opportunities.

This proposed feedback system should touch on items that would offer both the employee and the organization insight into how customer service is being addressed. Examples would include the rating of items such as product knowledge, the ability to solve problems, and people skills, much like what would be found in a graphic rating scale, another kind of performance management system widely in use (Noe et. al., 2010, p. 368).

Conclusions

In conclusion, it is certainly understandable that any organization wishes to see its defined, tangible goals met by its employees. This is where the Management By Objectives (MBO) performance management system can be of tremendous use in keeping employees on target to accomplish these objectives.

However, the MBO model for performance management leaves many questions and factors unaddressed. These include an employee’s other qualifications, skill sets, and education that may benefit the organization in other areas; circumstances beyond the controls of both the organization and its employees, such as turbulent macro-level economic distress; and the realm of customer service, an aspect of vital importance to the health and longevity of any organization. Finally, the MBO model fails to offer suggestions to employees on how performance can be improved.

This student submits that some sort of mechanism that addresses feedback in relation to customer service must be included in the current MBO system in order to fully gauge the long-term picture of the organization. While meeting short-term goals are great, it appears that a lot of factors surrounding quality are sacrificed, which validly calls into question whether meeting these short-term goals is always worth it.

It may not be easy implementing this proposed improvement to the MBO system, as any additions or improvements to any performance management system initially face an uphill battle with management, who, somewhat paradoxically, wishes to have an evaluation process that is all-encompassing, yet also wants to finish it as quickly as possible. Clausen et. al. (2008) acknowledges the difficulty of selling more thorough and accurate indicators of performance to management by pointing out that, “The process may take considerable time on the part of supervisors and may require subordinates to gather reams of information and prepare descriptions of their own performance. Some take the process very seriously, while others simply see it as a burden” (p. 64). Clausen et. al. takes it a step further, really honing in on the overall reliability of performance evaluations by stating,

Undoubtedly, performance evaluations rarely capture everything relevant in assessing employees' performance and their contributions to the organization over a period of time. Often, evaluations are forced into standard, predetermined formats that may omit important aspects of performance (p.66).

In the end, however, this feedback is critical to both the organization and employee. This student suspects, based on the research and personal experience presented, that a lot of high-quality opportunities are being missed by organizations.

References

Clausen, T. S., Jones, K. T. & Rich, J. S. (2008). Appraising employee performance evaluation systems. CPA journal, 78(2), 64-67.

Jones, G. R., & George, J. M. (2011). Contemporary management (7th ed.). New York: McGraw-Hill/Irwin.

Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2010). Human resource management: Gaining a competitive advantage (7th ed.). New York, NY: McGraw-Hill/Irwin.

Sitkin, S. B., See, K. E., Miller, C., Lawless, M. W., & Carton, A. M. (2011). The paradox of stretch goals: Organizations in pursuit of the seemingly impossible. Academy of management review, 36(3), 544-566. doi:10.5465/AMR.2011.61031811.

Spreitzer, G., & Porath, C. (2012). Creating sustainable performance. (cover story). Harvard business review, 90(1/2), 92-99.

Walla, N. (2011). Optimizing performance evaluations. Executive housekeeping today, 33(12), 18-19.

How to be More Engaging: A Personal Reflection Paper

By Aaron S. Robertson

The following is a paper submitted by the author on January 18, 2012 for a class assignment. The author is currently pursuing a master of science in management degree from Cardinal Stritch University in Milwaukee. Students were instructed to write a personal reflection paper on an attribute that they would like to obtain or improve.

Since our last class session, I have dedicated my time to attempting to be more engaging, particularly as it concerns my business and professional work.

I kicked off this little experiment by sitting down last Thursday evening for about 30 minutes and having a frank, honest discussion with myself in my mind. I had a pen and notepad readily available for any particularly noteworthy thoughts and findings that might have come up. I started asking myself questions like, “Are there any potential opportunities that I’ve been missing out on due to lack of reaching out to my contacts, or failure to adequately follow up with them?” and, “What do I need to work on to improve this situation?”

What I realized after this dialogue with myself was that, when it comes to functions that are more social and casual in nature, such as parties, get-togethers, etc., I am very engaging. I am truly a “social butterfly” in the sense that I love to reach out right away and introduce myself to unfamiliar faces at events like these. I enjoy humor, and often use that as an effective ice-breaker to get to know people. I’ve been described as a “man’s man” by some of my closest friends for my loyalty to them and my willingness to do whatever I can to lend a hand to someone in a time of need. I belong to a number of business networking groups, and feel extremely comfortable engaging with fellow members during our meetings. For the most part, I am very comfortable giving presentations and speeches to groups, and do so on a fairly regular basis.

Despite all of this, however, I found myself wondering if I was somehow leaving opportunity and perhaps even money on the table when it comes to what I do professionally. Upon further analysis, I discovered that much of the problem can actually be tied to issues with time management.

I determined that, if I really wanted to, I could probably fit in two or three one-on-one appointments per week, meeting with fellow business professionals to learn more about what they do and perhaps identify ways in which we may be able to help each other through the sharing of ideas and referrals, or even doing business directly. I belong to all of these different business groups and have a seemingly endless supply of others’ business cards, I figured. So why am I not doing more with these resources and this information, I wondered. And when I thought more deeply about it, I realized that I’ve been spending so much time making excuses. “I’m too busy,” “I already have enough on my plate this week,” “I’d be cutting the time too close to another commitment,” are all excuses I realized I had been making for quite some time. In reality, though, I could make the time for two or three appointments per week, perhaps even more. I realized that I spend a lot of time doing things that are not particularly productive, such as spending countless hours Web surfing with no particular destination or reason in mind. And I honestly don’t understand why I’ve been coming up with so many reasons not to be bothered with activity that could prove to be so beneficial on a number of levels. It’s essentially procrastination, I decided. It’s not being afraid to interact with others, as I certainly have no problem doing so.

To take the first step toward being more engaging when it comes to my business and professional work, I was on the phone the next morning, Friday, with a number of contacts from some of the business groups I belong to. My mission was to book one-on-one appointments outside of our normal meeting routine. I now have seven such appointments lined up over the course of the next two weeks. I am truly happy and excited about this, as it allows me the opportunity to get to better know these people on a more personal basis, as well as gain deeper insight into what they have to offer in terms of their services, products, and individual skill sets. It also serves as marketing that is nearly free in terms of costs, allowing me to keep my name and information in front of others for the nominal price of a cup of coffee or breakfast.

The HR Function for Ethics of Journalists at Patch

By Aaron S. Robertson

The following is a paper submitted by the author on January 11, 2012 for a class assignment. The author is currently pursuing a master of science in management degree from Cardinal Stritch University in Milwaukee.

Abstract

This student, a freelance journalist, examines the ethics policy of Patch Media Corporation, which is most concerned with the issue of plagiarism. He then addresses the policy from a human resources perspective, explaining why such a policy makes for sound business practice.

Introduction

In the field of journalism, it is imperative that writers and editors, as well as creators of other forms of content when referring to online and digital publications, do not engage in the practice of plagiarism.

In the following paper, this student, a freelance journalist himself for more than four years, and hence well-acquainted with the concept of plagiarism and its serious ramifications, will briefly discuss the ethics policy of Patch Media Corporation, the latest news organization that he has contributed a significant amount of work to. He will then tie that ethics policy in with one of the key functions of Human Resources Management (HRM), explaining why, from a business standpoint, it is important that the company have such a policy in place.

The Ethics Policy of Patch Media Corporation

Patch Media Corporation operates a Web site at patch.com . The site is broken down into many smaller sites, with each one serving as a source for news, commentary, and other content tailored to a specific community in the United States. Patch does not yet have a presence in every state, but the addition of new sites to its portfolio of holdings is announced regularly. Patch is exclusively online.

As a news organization that values original and exclusive news stories, commentary, photos, videos, and other content, the bulk of Patch’s ethics policy, not surprisingly, centers on the realm of plagiarism, going into detail on what constitutes it, how to avoid it, and how it can have detrimental consequences for not only the careers of those who engage in it, but also the news organizations they work for.

In its “Patch Freelancer Guide”, Patch Media Corporation makes it clear that plagiarism, in any of its forms, is unacceptable, noting that “Anyone found guilty of plagiarism will face disciplinary action, up to and including termination” (n.d., p. 31).

A Look at Patch’s Ethics Policy from a Human Resources Perspective

Patch’s ethics policy on plagiarism best fits the human resources function known simply as managing the human resource environment. In their definition, Noe, Hollenbeck, Gerhart, and Wright (2010) defines this element of Human Resources Management (HRM) as “Managing internal and external environmental factors,” which, they contend, “…allows employees to make the greatest possible contribution to company productivity and competitiveness” (p. 56).

The basic tenets of this function include monitoring the compliance of an organization’s HRM practices with all applicable laws; seeking to strike the proper balance between satisfying, engaging work for the employee and a customer focus that delivers a quality product; and ensuring that the organization’s HRM practices are properly aligned with its stated business goals and objectives (Noe et. al., 2010, p. 56).

Tying this human resources function into Patch’s ethics policy on plagiarism, Patch’s overall business objective, as with all news organizations, ideally is to provide original and exclusive content that cannot be found elsewhere, which works to its favor by attracting advertisers. This commitment to unique content ensures that readers are constantly returning to their respective community Patch sites for items like news stories, thought-provoking commentary, engaging polls, discussion boards, and exclusive video and still-photo footage. The end result is a one-of-a-kind, honest, high-quality, customer-centered product that readers come to place great amounts of trust in. Simultaneously, this end result, by way of the overall business objective, provides fulfilling and meaningful work for those responsible for producing such content on an ongoing basis. Monitoring the organization’s compliance with applicable law includes keeping a watchful eye on copyright law, which can tie into the act of plagiarism. Plagiarism would simply destroy all of this, eroding the trust placed in Patch by its readers, which in turn can lead to the loss of critical investments by advertisers. This is why it is imperative that Patch have a plagiarism policy in place.

Why it is an Important Policy to Have

Plagiarism can have long-lasting, damaging, and ripple effects. Not only can plagiarism ruin the careers of individual journalists who engage in it, but it also has the potential to harm entire news organizations that publish such ill-gained work, whether the intent to do so is present or not. Loss of a news organization’s credibility can lead to dropped subscriptions and advertiser accounts, for example. When this happens, a seemingly remote, one-time act committed by a rogue individual in the organization now affects the livelihoods of others in the organization, who are relying on such revenue-generating vehicles.

Conclusions

In the preceding paper, this student discussed the ethics policy of Patch Media Corporation, which focuses extensively on plagiarism. He then went on to discuss the policy from a human resources standpoint, explaining why having such a policy in place makes good business sense.

References

Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright P. M. (2010). Human resource management (7th ed.). New York: McGraw-Hill/Irwin.

Patch Media Corporation. (n.d.). Patch freelancer guide.