Essay on brinkerhoff

Essay on brinkerhoff

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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...

... middle of paper ... the recipient
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

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