Professional Documents
Culture Documents
Mangement Assignment Group Component
Mangement Assignment Group Component
He marvels at the ability of the builders to make such complex structures and
wonders how they know that the building is not going to fall, how do they know
they have the right knowledge and are applying it correctly while managing to
leave room for creativity and unique and unexpected problems that arise during
the process.
The CEO of Wal-Mart, Lee Scott gave its employees a free-reign and
implemented the idea of decentralization. As a result Wal-Mart was able get
more than half of the 126 shut-down stores up and running within 48 hours.
Moreover, Wal-Mart’s store managers began distributing diapers water baby
formula and ice to residents without any orders from higher authorities, whereas
FEMA still had not managed to requisition supplies. The managers came up
with a paper slip system providing them with food, sleeping bags, toiletries,
medicines and rescue equipment on credit. The team also opened 24-hour call-
centers which expanded to 80 call-operators, they set up mobile pharmacies
with a plan to provide medication free of cost for evacuees with emergency
needs even without prescriptions along with opening temporary clinics to
provide inoculations against flood-borne diseases. Most importantly, the
company’s logistics team contrived ways to get tractor trailers with food, water
and emergency supplies past the roadblocks into the city. They became the
lifeline of the dying city. They were able to supply food and water to the even
the National Guard before the government.
At the end of this perfect storm Wal-Mart had sent 2498 trailer loads of supplies
and donated $3.5m in merchandise to shelters.
Here if we analyze this situation from a managerial point of view, we can see
that the type of leadership practiced by Lee Scott, based on the use of authority
is the ‘free-reign’ , ‘subordinate-centered’ type of leadership. The power and
authority is highly decentralized and push out to the periphery. Where as the
leadership shown by FEMA and the state government is the ‘autocratic’ kind.
The government was unwilling to distribute power to the state, local bodies and
private organization, and such type leadership is often detrimental in crisis
situations like these.
Furthermore, the approach towards decision making under risk and volatility
should be to devote resources to preparedness and stockpiling inventories,
which is exactly what Wal-Mart did, being a retailing giant, they already had
these pre-requisites and focused on distributing them by making creative, non-
programmed decisions like setting up credit systems, clinics, mobile pharmacies
etc.
Van Halen’s Brown M&M Clause
Many people may assume this to be one of the eccentric demands high-profile
musicians make, but David Lee Roth’s idea to include this clause in his
contracts was a genius business move. One could say it was included as a test
buried somewhere between hundreds of pages. Basically, the contract stated that
a bowl of M&M has to be provided backstage with every single brown one
removed, upon the pain of forfeiture of the contract, with a 100% compensation
to the band.
Firstly, it ensured that the concert promoted had thoroughly read the brand’s
contract.
Secondly, it aimed at reminding everyone to line-check the entire production
every time a brown M&M was found, because he was sure that something
would definitely be amiss or in need of attention. This saved them from many
technical errors like preventing the flooring from sinking in or making sure the
girders could support the weight of the stage.
Rialto Restaurant, Boston
This example elucidates the managerial principle of planning covered in ch 4
The author talks about the fact that a checklist is already in use in most
professions where planned decision making has to take place, like a fine-dining
restaurant’s kitchen. The food there is different from fast-food which involves a
tailorized assembly-line, here food is refined, ever-evolving and customized to
the guests’ specifications. And when it comes to food, recipes are a basic
necessity, and what are recipes if not the most basic checklist. Jody Adams, the
head chef made everyone follow this checklist religiously other than her
“Kitchen Notes” which were basically the corrections that the dishes needed.
There was also a checklist for every customer, VIPs, large guest parties and
everyone’s allergies and preferences had to be taken in to account. At 5 o’clock
every day she would hold a ‘pow-wow’ session where everyone gathers around
and discuss the unanticipated issues like -menu changes, absent staff members,
delays etc. Everyone was given a chance to speak while they made plans to
solve issues. At least, 5% dishes sent for evaluation came back and sometimes
entire recipes had to be changed, this involved taking a corrective action to
produce a desirable change. This is an example of informed or programmed
decision making in an autocratic type of leadership.
Citations
1)Hurricane KatrinaWal-Mart's response to Hurricane Katrina: Striving for a public-private
partnership (sequel). HKS Case Program. (n.d.). Retrieved October 26, 2021, from
https://case.hks.harvard.edu/wal-marts-response-to-hurricane-katrina-striving-for-a-public-private-
partnership-sequel/.
2) Zeveloff, J. (2016, September 6). There's a brilliant reason why Van Halen asked for a
bowl of m&ms with all the brown candies removed before every show. Insider.
Retrieved October 26, 2021, from
https://www.insider.com/van-halen-brown-m-ms-contract-2016-9.
Riya Lalchandani