I. Facts of case:
a. Brikerhoff International, Inc. is currently in an economic boom following 8 years of economic depression
b. President Tom Brikerhoff wants to expand company efforts & revenues, and also relieve tension around Safety Supervisor, Kurt Mannheim
i. Kurt Mannheim concerned about safety of Rig #1-E, however, he had also recently accused Rig #1-E¡¦s rig manager, Rick Kopulos of allowing alcohol into their base
1. concern for rig safety might have risen from personal tensions rather than actual safety issues
2. Brikerhoff considering promotion of Mannheim ii. Actually concerned w/safety of Rig #20 under Tom Rossick
c. Drilling Industry¡Xhigh risk & high uncertainties
i. Rig activity could go from 60% utilization to 20% in 2 weeks b/c of fluctuating demand ii. Rig operates 24 hours a day w/2 12hour crew shifts iii. Working „³ isolated life for 2 of 3 weeks most of the year; only shared w/other workers; far from other cities & towns iv. Harsh environmental conditions
v. Alcohol & drugs were not permitted
1. Mannheim violated company rules by allowing, although small & controlled amounts, of alcohol onto the base camp
d. Company history
i. Brikerhoff continued to buy additional rigs after the Canadian gov. introduced the National Energy Program, which gave a large portion of Canada¡¦s oil & gas to another company called Petro-Canada; also charged remaining companies 25% royalties on output, which led to the decline in drilling activities
1. caused additional debt to company when a year later, oil prices fell to less than $10/barrel; if had purchased less, perhaps would have been in less debt
2. BII took drastic steps to cut overhead from $2 million plus to less than $500,000
3. cost reduction not enough, which led to buyout & stock swap between Tom & his father & brot...
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d. Reward teams rather than individuals, which will lead to less conflict and less coordination costs.
e. Ensure that Equity theory is fulfilled
f. Address Learning Theory
g. Goal Setting Theory: specific & difficult goals w/feedback „³ high performance
h. Increase employee involvement: a participative process that uses the entire capacity of employees & is designed to encourage increased commitment to the organization¡¦s success
i. Right now workers do not feel committed to mission statement
i. Perhaps start gainsharing: a type of variable pay program; an incentive plan in which improvements in group productivity determine the total amount of money allocated
i. Reward specific behavior less influenced by external factors ii. Can receive rewards even when not profitable iii. Increased motivation & productivity iv. Downside = unpredictable
Daumeyer, Rob. "Beware of Too Much Business" Cincinnati Business Courier (June 1996): 9pars. 28 June 1996
7. Sales had dropped in 1993 but operating profit margins increased due to increase in
In 1958 Alberta gas finally reached Toronto and imports of Texas gas ended. Canada 's population was booming during the 1950s, and energy scarcities were becoming challenging. Canadian company TransCanada Pipelines Ltd. was incorporated in 1951 to undertake the creation of a natural gas pipeline across Canada. The financing of the project was split 50-50 between American and Canadian interests. This was a substantial operation in Canada because extra work was temporarily available to be able to create the pipeline. Canada has now become a self-sufficient country and stopped relying so much on other countries for oil. This was the activation of not only the Alberta oil industry booming and thriving, but also a nation as a
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Maximize the interaction with in the group to facilitate unity of the three individual groups (management and workloads)
This turned out to be a serious safety hazard with the expected loss of life. But they labelled it as an Acceptable risk, instead of finding a solution.
The desired outcomes from cost reductions, such as reducing the workforce by almost half and eliminating management bonuses, are to reduce cost of goods and increase operating income. Although Harnischfeger’s cost of sales (COS) has increased from 1983 to 1984, the company appears to have reduced COS in comparison to sales from 81% to 79%. In addition, it has increased its Operating Income from $62 million in 1983 to $90 million in 1984.
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Organizational changes that reduce cost. The M&S reduced its management levels to reduce the cost.
As “5.1 Cut Costs & Reduce Prices” results in both increased profits and increased market
changing the individuals in the company (their skills, values, attitudes, and behavior). On this case, the changes are considered to be instrumental to organizational
Currently, Nicholson’s financial history boasts a 2% increase in profit annually but this percentage is way below the industry average of 6%. Cooper management proposed that if Nicholson stops selling to every market, increased efficiencies would result and cut cost of goods sold from 69% of sales to 65%. It was also suggested that the acquisition could lower selling, general, and administrative expenses from 22% of sales to 19%.
Engagement is also an important part for the employees. The company provides information of the board meetings to all employees. This enhances the employees’ feelings of being well-informed and engaged. The employees even can challenge the current unit wage for manufactured parts. This is an open discussion, so we can see that employees are treated as if they were partners.
...he firm foresaw the significant probability of harm to firefighters using the training facility and acted to communicate the discovered risks to the government organization awarding them the contract. Communication was essential in persuading the government to address the safety issues because the site met the requirements set forth by law, reducing the perception of risk, and the design choice of replacing jet fuel with liquid propane created the unintended consequence of an increased risk that otherwise may have gone unnoticed if not for the actions of Giffels’ consulting firm. Giffels’ strategy to remain persistent in refusing to complete the contract and highlighting the significant risk his firm discovered proved successful when dealing with a client that at first appeared to have taken a minimalist approach by staying with the minimum requirements of the law.
...h the full expenses included. Challenge overseeing and incorporating over a huge supply change and developing patterns.