Reference no: EM133041868

Case Study 1:"Project Oxygen" Resuscitates Google's Poor-Performing Bosses

When it comes to gathering data and analyzing it to build new and better products, few companies do it as well as Google. Recently Google decided to use its info-tech expertise to answer an important question: Since people make the difference between good and great companies, could a data-driven, analytical approach be used to improve Google's human resources management function? Such an approach worked for Billy Beane, so surely it could work for Google, couldn't it? Recall from Chapter 1 that Beane, the manager of the Oakland A's, dramatically improved players and the team using data and statistics. (Actor Brad Pitt dramatized Beane's efforts in the movie Moneyball.)

One thing Google wanted to know was if it could "build" better bosses. Why? Because despite the many job perks Google's workers get, the company's employee turnover rate was surprisingly high. It's been said that the number 1 reason people leave their jobs is because of their bosses. Could this be true at Google? And if so, could the behaviors of good bosses be pinpointed and used to improve the performance of not-so-good bosses? The researchers at Google wanted to find out. They also wanted to answer these questions using data from their own organization to find out precisely what works for Google rather than other organizations.

To answers these questions, a team of 25-plus Google researchers and scientists began studying the company's supervisors using their performance reviews, surveys from their employees, interviews, and observations of their behaviors. Over 10,000 observations were collected on 100 variables to determine how well the supervisors were performing. Initially, not all supervisors were thrilled to be evaluated by their subordinates and "put under the microscope." Consequently, the effort took some "selling" to Google's top management. The fact that there the researchers could point to dramatic differences in the overall ratings employees gave different managers and that some teams performed much better than others helped fuel the fire to get "Project Oxygen" off the ground. (Presumably a good boss gives you room to breathe, whereas a bad boss can suck the life right out of you, hence the project's name.)

Once concluded, Project Oxygen yielded a plethora of information, some of which mirrored conventional wisdom and some of which did not: Teams with higher-rated managers performed better, the employees in them were happier, and they stayed with the company longer. Their managers had more impact on how the employees felt about their jobs than any other factor. However, it turned out that best bosses weren't the ones with the greatest technical expertise, as Google had anticipated. Instead they were those who are even-tempered, help their teams think through problems without micromanaging them, and care about them as people. Google then used the information it gathered to implement training and coaching programs to quickly improve the quality of the bulk of its worst performing managers.

Specifically, Google identified eight behaviors you should engage in if you want to be a good boss-at least at Google:

• Be a good coach
• Empower your team and don't micromanage
• Express interest in team members' success and personal well-being
• Be productive and results-oriented
• Be a good communicator and listen to your team
• Help your employees with career development
• Have a clear vision and strategy for the team
• Have key technical skills so you can help advise the team

Questions

1. Why isn't having the greatest amount of technical expertise the key to being a good supervisor at Google?
2. Does Google's research on the performance of its managers surprise you? Why or why not?

Case Study 2:

Pay Decisions at Performance Sports

Katie Perkins's career objective while attending Rockford State College was to obtain a degree in small business management and to start her own business after graduation. Her ultimate desire was to combine her love of sports and a strong interest in marketing to start a mail-order golf equipment business aimed specifically at beginning golfers.

After extensive development of a strategic business plan and a loan in the amount of $75,000 from the Small Business Administration, Performance Sports was begun. Based on a marketing plan that stressed fast delivery, error-free customer service, and large discount pricing, Performance Sports grew rapidly. At present the company employs 16 people: eight customer service representatives earning between $11.25 and $13.50 per hour; four shipping and receiving associates paid between $8.50 and $9.50 per hour; two clerical employees each earning $8.25 per hour; an assistant manager earning $15.25 per hour; and a general manager with a wage of $16.75 per hour. Both the manager and assistant manager are former customer service representatives.

Perkins intends to create a new managerial position, purchasing agent, to handle the complex duties of purchasing golf equipment from the company's numerous equipment manufacturers. Also, the mail-order catalog will be expanded to handle a complete line of tennis equipment. Since the position of purchasing agent is new, Perkins is not sure how much to pay this person. She wants to employ an individual with five to eight years of experience in sports equipment purchasing.

While attending an equipment manufacturers' convention in Las Vegas, Nevada, Perkins learns that a competitor, East Valley Sports, pays its customer service representatives on a pay-for-performance basis. Intrigued by this compensation philosophy, Perkins asks her assistant manager, George Balkin, to research the pros and cons of this payment strategy. This request has become a priority because only last week two customer service representatives expressed dissatisfaction with their hourly wage. Both complained that they felt underpaid relative to the large amount of sales revenue each generates for the company.

Questions

1. What factors should Perkins and Balkin consider when setting the wage for the purchasing agent position? What resources are available for them to consult when establishing this wage?
2. Suggest advantages and disadvantages of a pay-for-performance policy for Performance Sports.
3. Suggest a new payment plan for the customer service representatives.