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    The ABC Company has historically been successful in the technology industry but has struggled since the rise of globalization and overseas competitors. To adapt, ABC shifted from selling hardware to providing knowledge-based consulting services, though this transition has proven difficult. As a consultant hired by ABC, recommendations must be made to facilitate effective implementation of the new business model through organizational behavior theory.

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    The ABC Company has historically been successful in the technology industry but has struggled since the rise of globalization and overseas competitors. To adapt, ABC shifted from selling hardware to providing knowledge-based consulting services, though this transition has proven difficult. As a consultant hired by ABC, recommendations must be made to facilitate effective implementation of the new business model through organizational behavior theory.

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    16 views3 pages

    Case 2 OBL

    Uploaded by

    maya well
    The ABC Company has historically been successful in the technology industry but has struggled since the rise of globalization and overseas competitors. To adapt, ABC shifted from selling hardware to providing knowledge-based consulting services, though this transition has proven difficult. As a consultant hired by ABC, recommendations must be made to facilitate effective implementation of the new business model through organizational behavior theory.

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    of 3

    Organizational Behavior and Leadership (MAPM503)

    CASE 2

    The ABC Company has a long history of success. The company has been at the fore front in the
    development of information technology since the 1970s and led the market in technology
    development, manufacturing and sales throughout the 1980s to the mid-1990s. ABC Company
    was a success story. They consistently met or exceeded their profit targets, successfully integrated
    new technology into their products, and they were considered one of the best employers in the
    country. With generous benefit packages, a high quality of work life, industry leading salaries,
    and a corporate culture that considered its employees to be part of a family, potential employees
    were lined up for opportunities to join ABC company.
    However, with the advent of globalization, freer trade, and low cost overseas labor, ABC
    Company found itself slowly losing market share for its primary product: computer hardware.
    ABC Company had prided itself on producing and selling the best products and training its sales
    force to develop long term relationships with clients that brought them back year in and year out
    for ABC Company’s technology. Along with hardware, ABC Company also sold service
    contracts and training classes for the end users of their products. By the late 1990s it became clear
    to the leadership at ABC Company that they could no longer compete with less expensive
    products being produced overseas. At one time they could sell their higher priced goods on the
    premise that they were of higher quality, but that was no longer the case. Foreign-made products
    were now being produced to match or even surpass the quality standards set by ABC Company.
    However, conversations between sales representatives and their clients did indicate one thing: the
    clients valued the personal interaction they had with the sales reps and the personalized advice
    that they could provide to their clients to help them to reach their goals. ABC Company
    recognized that they needed to make a change and they believed they had a new vision for their
    company.
    As they entered the 21st century ABC Company moved away from hardware solutions to
    business challenges and shifted instead towards knowledge-based solutions. Rather than selling
    equipment, ABC Company began to market the extensive knowledge of their workforce. ABC
    Company would no longer sell the equipment; they would instead provide integrated knowledge-
    based solutions to information management problems. Essentially they would become a
    consulting firm that would assist their clients to set up systems that would facilitate information
    management. But now their solutions would go beyond hardware and encompass software,
    organizational design, data collection management, work flow and overall information
    management re-engineering. Sales reps underwent significant training to prepare them for their
    new roles. However, the redesigned jobs were not a good fit for all of the sales reps. some moved
    on to other types of positions within the company, but others left to pursue opportunities
    elsewhere.
    As expected, profitability declined during the initial introduction of this new organization mission
    as employees became accustomed to their new roles. Due to the time taken to train employees,
    they were spending less time in the field with their clients generating revenue and more time in
    the classroom being oriented to their new roles. However, the decline persisted much longer than
    anticipated and the company’s leadership team, board of directors and the shareholders were
    growing impatient with the slow returns. It became increasingly apparent that while the training,
    resources, and equipment were in place, significant changes in the organizational behavior system
    at ABC Company were necessary to ensure long term success.

    1
    Case Questions

    You are to assume the role of a consultant hired by ABC Company’s leadership when answering
    the questions to this case. You should focus on making specific, detailed recommendations to
    assist the company in achieving its goal of effectively implementing its new business model.
    Responses to the questions should reference theories/concepts/processes that will help the
    company and its employees to adapt to the new direction and new work environment. Do not just
    reiterate a theory; explain how it applies to the case and why it is the best approach.
    Responses are graded on both the effectiveness and relevance of the recommendations as
    well as the quality of the explanation that accompanies each recommendation.

    1. The case indicates that ABC Company has traditionally had a “…corporate culture that
    considered its employees to be part of a family…”. Do you believe that this is the best culture
    for the organization going forward? Why or why not?

    2. As the sales representatives at ABC Company take on their new roles in the organization
    some are very excited about their new positions and new opportunities for growth, while
    others are reluctant to assume these new responsibilities. The level of motivation to excel in
    the new position varies among the employees. Using expectancy theory and equity theory,
    explain why two employees may have entirely different reactions – one works harder than
    ever while the other decreases effort. Use each theory to explain each reaction – in other
    words, use expectancy theory to explain why one employee would increase effort and why
    the other would decrease effort and then provide the same arguments using equity theory.

    3. ABC Company must develop a new reward system to facilitate the transition to its new
    business model. Rewards will play an important part in achieving employee buy-in. What
    recommendations would you make to ensure that the organization incorporates both extrinsic
    and intrinsic rewards? How important is it for managers to understand the individual needs of
    their employees in administering the reward system?

    4. Effective leadership is one of the most important determinants of the success of an


    organization. Research has addressed traits, behaviors and situational theories of leadership.
    More recent studies have examined charismatic, transformational and transactional
    leadership. Compare and contrast these three leadership styles. How can ABC Company
    benefit from transactional and transformational leaders? Recent research has asserted that
    leaders are not always necessary. What characteristics can substitute for leadership?

    2
    5. Based on the information provided in this case, it appears that the anticipated change at ABC
    Company has stalled. Discuss why employees may be resisting this organizational change
    and how it can be overcome. How can ABC Company build employee support for the
    change? How would you implement Lewin’s three –stage model for change?

    While these five questions provide a starting point for analysis, other areas to consider
    include communication, work design, conflict management, stress management and team
    development.

    Due date: Wednesday 18th January 2022 at 12 noon

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