Date: April 2, 2009
To: Jim Billings
President and CEO, Stone Finch, Inc.
From: Heather Leake
Laura Cash
Nicole Shelton
Brittany Snyder
OB Consulting Practice
RE: Creating a balanced work environment
Mr. Billings, the best promotion for further expansion of Stone Finch, Inc. lies in realizing only through
the individual success of your employees, does your organization succeed. Stone Finch’s organizational
structure induces an imbalanced work environment. Creating and strengthening the opportunity for
members in the Water Productions Division will be your major task. Implementing within your
organization a shared vision (Senge, 1990, 109) and building trust among your employees and customers
(Whitener and Stahl, 2004, 466) will make Stone Finch stronger. You will continue toward the goal of
furthered innovation when you find ways to convey the importance of every member in all divisions and
the role they play in the organizations’ success (Lawler, 2003, 581). We also recommend evaluating
Stone Finch in the area of continuously finding new ways to motivate all members of the organization
(Nadler and Lawler, 1977, 171). Refocus Stone Finch’s goal of innovation by adopting these principles
and you will take your company to the next level.
The first step of improving leadership in the company involves creating a shared vision (Nanus, 1996,
462) that roots itself in a shared understanding grounding (Thomas and Osland, 2004, 295). Both you
and Eli want what holds the best interest for the company; however, each of you possesses different
ideas on how to execute your ideas. Since your organization’s success depends on your employee’s
creativeness, the shared vision should incorporate their ideas as well. Due to the number of employees
that comprise Stone Finch, this process will entail an organized method. Based on the success of the
“company jam” in the spring we propose somewhat of the same format with a few enhancements.
Creating smaller groups for more personal “jams”, overseen by one or two appointed “administrators”,
will provide an environment for candid comments. Each group focuses on building what they think
should hold a part of the shared vision for Stone Finch, Inc. After each group reaches an agreement, all
“administrators” create a list of the values their group deemed as most important. Finally, the
“administrators” present the list to yourself and Eli, upon which you will begin to form the ultimate
shared vision of the company.
Assembling all ideas for common goals for each division aids in getting the company back on the right
track. After forming the final vision, you and Eli are to unveil the finished product. This will show the
personnel of Stone Finch the importance of working together towards mutual objectives that best fit all
members of the corporation. To facilitate further progression in the goal of uniting Stone Finch, you and
Eli need to observe additional steps in the process. An example consists of striving towards the identity
of a steward leader. This requires that you be ready to serve; “it is almost solely a matter of attitude”
(Senge, 1990, 108). Applying this simple change can offer you tremendous results.
Management of the contradictions and tensions between the manufacturing and service division’s
needs immediate attention. The conveyance of the importance of all divisions and individuals will begin
to eliminate any inequities that exist. “People need to be respected and treated as precious human
capital, more essential to an organization’s effectiveness than its financial capital” (Lawler, 2003, 581).
Adoption of this policy creates a more level work environment for all employees. Taking action in this
form shows that your company does not represent just another big, moneymaking firm. Instead, it
shows that Stone Finch, Inc. chooses to invest in improving and regaining the trust that exists “rooted in
the personal relationships among individuals” (Whitener and Stahl, 2004, 466). Since an “individual’s
trust in others is based on their propensity to trust and their perceptions of others’ trustworthiness”,
you must find new ways to reinforce Stone Finch’s trustworthiness (Whitener and Stahl, 2004, 466). A
way to do this exists in your reward system. Due to the extrinsic rewards (Kouzes and Posner, 2002, 193)
that are present on the Solutions Division side of Stone Finch, Inc., place your focus on the Water
Products Division. Stone Finch would most benefit from using “global team-based pay to encourage
teamwork and individual-based pay to stimulate individual accountability” (Hartog and Kirkman, 2004,
615-617). Combining individual and team-based rewards allows for the organization and individual to
succeed with all parties feeling significant throughout the process.
Another important part of starting towards the next level involves regaining Mr. Saunders’ support.
Becoming more involved in the corporation on the side of Water Products Division represents the
beginning point to repair any indifference that exists. Making the time to sit down together and have a
one-on-one conversation could provide the means to overcome the issue of separation between the
two divisions. You and Mr. Saunders’ should offer each other feedback that can assist one another in
making better vision-related decisions (Kotter and Cohen, 2002, 689); embracing one another and
holding each other accountable for these decisions. Making a collective effort to create a positive,
effective change in your relationship with one another and Stone Finch, Inc. requires endeavor from
both parties.
Stone Finch also needs to alter the infrastructure of its two divisions. The Solutions Division represents a
horizontal organizational structure that provides room for advancement within the company. This shows
how Stone Finch values innovative and creative thinking from its staff members. This type of model
demonstrates a key piece in retaining your skilled employees. The Water Production division, however,
has an organizational structure tailored toward a traditional business model: hierarchical. This system
does not provide much opportunity for the innovative creativeness on which Stone Finch, Inc. thrives.
On one hand, you have created a dynamic structure that puts people first (Pfeffer and Veiga, 1999, 49)
by reducing status distinctions (Pfeffer and Veiga, 1999, 57). On the other, however, you have essentially
built a wall that seems impossible for your employees to scale. Break down that wall and create a flat
structure that encourages personal opportunity for all employee’s and Stone Finch, Inc. will embody a
successful company (Senge, 1990, 109). We have included a model that allows for distinction of the
executives from the employees, while at the same time strengthening the bond required to maximize
production.
Reorganization of Stone Finch will take time, as well as, patient and consistent effort. Focus on finding
new ways to provide position-related currencies (Cohen and Bradford, 1989, 572-573) to your
employees in the Water Products Division, just as you have for your employees in the Solutions Division,
and Stone Finch, Inc. will continue to excel through innovation. The balance found through this action
can only improve the performance of Stone Finch, Inc.
Works Cited
Cohen, Allan and Bradford, David. 1989. "Influence Without Authority: The Used of Alliances,
Reciprocity, and Exchange to Accomplish Work," Organizational Behavior Reader, 569.
Kirkman, Bradley and Hartog, Deanne. 2004. "Performance Management in Global Terms,"
Organizational Behavior Reader, 616.
Kotter, John and Cohen, Dan. 2002. "The Heart of Change," Organizational Behavior Reader, 689.
Kouzes, James and Posner, Barry. 2002. "Recognize Contributions," Organizational Behavior Reader,
193.
Lawler, Edward. 2003. "Why Treating People Right Pays Off," Organizational Behavior Reader, 581.
Nadler, David and Lawler, Edward. 1977. "Motivation: A Diagnostic Approach," Organizational Behavior
Reader, 171.
Nanus, Burt. 1996. "Why Does Vision Matter?" Organizational Behavior Reader, 461.
Pfeffer, Jeffrey and Veiga, John. 1999. "Putting People First for Organizational Success," Organizational
Behavior Reader, 49.
Senge, Peter. 1990. "The Leader's New Work: Building Learning Organizations," Organizational Behavior
Reader, 109.
Thomas, David and Osland, Joyce. 2004. “Mindful Communication,” Organizational Behavior Reader,
295.
Whitener, Ellen and Stahl, Gunter. 2004. "Creating and Building Trust," Organizational Behavior Reader,
466.
OB Case Study #3 Outline
Intro: Tell them what you are going to tell them.
Body: Tell them.
Conclusion: Tell them what you told them.
Introduction:
Explain to Mr. Billings what we think would offer the best solutions for his dilemmas. These include
but are not limited to the following:
- Revamping the organizational structure
- Building trust
- Eliminating status distinctions
- Motivation in members
- Forming a shared vision
- Success for the individual and the company
Body:
We are going to focus on answering Billings’ questions at the end of the case study by extended upon
our solution topics from the introduction paragraph.
A. Building the capabilities necessary to support continued growth, either organic or by acquisition
a. (Senge, 1990, 109) The Leaders New Work
b. (Nanus, 1996, 461) Why Does Vision Matter?
B. Managing the contradictions and tensions between the manufacturing and service divisions, while
maintaining and improving the performance of the cash cow
a. (Whitener and Stahl, 2004, 466) Creating and Building Trust
b. (Lawler, 2003, 581) Why Treating People Right Pays Off
C. Regain Eli Saunders‘s support within the organization
a. (Kotter and Cohen, 2002, 689) The Heart of Change
D. Changes in organizational structure to retain skilled employees
a. (Pfeffer, 1999, 49) Putting People First for Organizational Success
b. (Hartog and Kirkman, 2004, 616) Performance Management in Global Teams
c. (Cohen and Bradford, 1989, 569) Influence Without Authority
Conclusion:
Here we will tie all of the ideas mentioned together in an action statement, propelling Billings forward
into his effort of keeping Stone Finch united in the corporate world.