Organizational Development
TGIF Case Study
Page 26,27
Presented to: Dr.Ali Saad
Group Members:
Marwan Mohamed (170371), Sara Kandil (170637), Marwan Kaheld (170355)
TGIF Case Study
About:
Company Name: Quantum Software
Founders: Stan Albright and Erin Barber
Corporate Attorney: Bill Carter
Experience: 3 years
Sales: $95 million
Number of Employees: 200
Business: Selling computer software specially to oil businesses
Value: Corporate Culture
Reward System: “Beer Fest” events every Friday
Macro:
1. Alcohol consumption within the organization can put them in high risks of causing
accidents and get hurt or hurt someone else, which will cause major liability issues
for the company.
2. As employees are increasing, throwing such parties might get out of control and
affect employee’s behaviour in a negative way.
Micro:
1. Crossing the boundaries between managers and employees due to the informal way
they use during the “beer fest” events,
2. The overall morale of the employees could be negatively affected due to friendship
and behaviour with the mangers, as by using this strategy Erin and Stain formed an
environment where the professional integrity could be compromised.
Causes:
1. Stain and Erin strongly believe that by throwing the Fridays events they show
employees appreciation and gratitude for their hard work, so it is used as a reward
for employees to relax and unwind.
2. Maintain the morale of employees and keeping their spirits hight and motivated,
however, intoxicated will be an issue.
3. Quantum requires employees to work on a demanding schedule and ordering plans,
so “beer fest” Fridays is a method of rewarding them for their hard work.
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TGIF Case Study
System Affected:
1. Bill is concerned of the risks of liability issues that will emerge from intoxicated
employees specially as the company grows the risks increase.
2. “No ties, no suit coats, first names only” The informality between the managers and
the employees in the Fridays events will affect the relationships and connections
between them.
3. Erin is strongly convinced that throwing the “beer fest” Fridays is the best way to
reward the employees and doesn’t see how vulnerable her company will be sued
and prosecuted if something happens.
Alternatives:
1. Instead of “beer fest”, they can throw barbeque parties or catered food and
eliminate alcohols and use non-alcoholic drinks instead on Fridays, as in this way
they still have their usual social gatherings to relax and unwind.
2. Since they have the “beer fest” Fridays for the past 3 years, they can move into
something new as going to a local bar or a restaurant after work, as this will relive
Quantum from any liability issues.
3. Change the reward method and se other incentives as a day off or extra bonus on
their salary, in addition to hiring new employees to decrease the work load and to
be able to keep up with the demands which will lead to high productivity.
Recommendations:
Stan and Erin’s way to reward employees on their hard work is throwing the “beer fest”
Fridays events and they believed that it’s a successful way to keep employees motivated,
and their vision was right as Quantum became very successful in a short period of time.
However, on the long run the “beer fest” Fridays will start to have negative effects on the
behaviour of the employees and will cause liability issues for the company. And by this Stan
and Erin must sit will Bill to review their liabilities and know all kinds of suites they could
face if something went wrong. In other words, the best way for Quantum to prevent being
lawsuit or crossing the boundaries between employees and managers is to rethink of other
reward methods and use different incentives as giving them a day off or increasing the
salaries, or they might simply keep their Fridays gatherings but use non-alcoholic beverages
instead of alcohols and serve food or throw barbeque parties. Another thing, is to move the
party to a local bar after the work and by this way Quantum is relieved form any liability
issues as they are not in the company. In addition to this, Quantum must hire new
employees to decrease the word load on their current employees, which will lead to
increase in productivity as the employees are less stressed about keeping up with the
demands. Lastly, Erin and Stan should be future oriented and in order to remain successful
they must change the corporate culture (organizational structure) and the informal and
friendly way between them and the employees will cause crossing the boundaries and
compromising from the owners if any employee did something wrong or didn’t follow the
rules.
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