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At a meeting of the top managers in your company, President Anne Thompson points out that stockholders have been pressuring the organization to increase return on assets. She asks for suggestions. Four of your colleagues respond in the following manner:

• “Sales, sales, sales. You’ve got to have more revenue to increase return.”

• “Cut the expenses. How can you get a higher return if you don’t keep more of your sales dollar?”

• “Expansion! More productive assets! Growth is the way to go.”

• “No, no! Cut the assets! Sell those that will bring the best price!”

Evaluate your coworkers’ comments. Will these strategies produce a definite increase in return on assets? What are the risks and rewards of each strategy?

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Developing Staffing Policies and Procedures Humanizing Cookware is a small 50-person firm that works to help small start- ups that make kitchen gadgets improve the design of their products. The name “Humanizing Cookware” is a reflection of the firm’s unique approach to product development. Specifically, the company’s designers, called kitchen lifestyle facilita tors (KLFs), use tools and techniques from anthropology to study how people use kitchen gadgets in their homes. This means carefully observing how people cook using ethnographic techniques to uncover what their cooking experience means to them, and then using these raw data in the creation of designs that appeal to the dreams and wishes of home cooks. Although the company has avoided using standardized job descriptions, you have been able to determine that most employees spend their time either talking directly with client organizations to find polet what their needs are or conducting the studies of soup and ask them how and why they are using a specific technique, why they like carrots as an ingredient in soup, and why they cook rather than order from a res taurant. As home cooks talk, the facilitator might learn that products should focus less on convenience and more on giving the appearance of something handcrafted and personal. Then this information would be presented to a client organization that will then modify its products to bring them in line with the advice of the KLF. As the description of Humanizing Cookware might suggest, this is a rather unusual company with an artistic and free-spirited orientation to its work. Com- pany nature retreats and mindfulness meditation sessions are the norm. Structure and planning are not emphasized. But despite this unconventional approach, the company is quite successful . Few other companies can match the insights its unique anthropological approach is able to glean from home cooks. The company has little in the way of hierarchy or formal rules. This is in keeping with the culture. However, the lax policies and procedures have resulted in some very poor hiring procedures and problems with meeting legal guidelines for docu- mentation. The company’s leadership team has asked you to help them develop a set of standardized policies and procedures that will make the process of hiring new KLFs more standardized. They would like you to develop a staffing flowchart, something like the one shown in Exhibit 13.5. The process will be different, however, because there is no separate staffing services group: all responsibility is shared by the supervisors and the leadership team. They would also like to use fewer steps in the process if pos- sible. You will also want to develop a set of policies and procedures that can help all members of the organization ensure that new hires are treated in a fair and consistent manner. Information for how to develop these policies can be found in Exhibit 13.2. Once you have created a staffing flowchart and some policies, consider the fol- lowing questions: 1. How does the small size and flat structure of the company impact the flow- chart and policies you developed? 2. How does the organization’s informal culture influence the types of policies and procedures you would implement? What are the advantages and challenges such a culture poses for designing and implementing policies and procedures? 3. How would you get buy-in for a more standardized set of policies and pro- cedures in this organization? What arguments could you make that would persuade employees to follow through with the new system?

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Consider the facts in Question 8 but assume that the price was $350. Assume further that Benson wishes to avoid the contract based on the allegation that Carl befriended and tricked him into the purchase. Discuss.

Question 8

Carl, a salesperson for Smith, comes to Benson’s home and sells him a complete set of “gourmet cooking utensils” that are worth approximately $300. Benson, an eighty-year-old man who lives alone in a one-room efficiency apartment, signs a contract to buy the utensils for $1,450 plus a credit charge of $145 and to make payments in ten equal monthly installments. Three weeks after Carl leaves with the signed contract, Benson decides he cannot afford the cooking utensils and has no use for them. What can Benson do? Explain.

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According to Virgin Vacations, 50% of the workers in Amsterdam commute to work by bicycle, making it ‘The Bike Capital of the World’. If 25 Amsterdam workers are randomly selected, what is the expected numbers that commute to work by bicycle? Graph the binomial distribution for this sample. What are the mean and the standard deviation for this distribution? What is the probability that more than 12 of the selected workers commute to work by bicycle? Explain conceptually and from the graph why you would get this probability. Suppose you randomly sample 25 Amsterdam workers and actually get 14 who commute to work by bicycle. Is this outcome likely?

 

 

 

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