1. Why do you think Rick was let go? How does reinforcement theory apply to the main characters in this situation? How does expectancy theory apply?2. Explain Rosie’s and Walter’s reactions to Rick’s computer in terms of resistance to change. How might Rick have used the concepts in this chapter to approach the computer situation so as to gain acceptance?3. Explain Rick’s inability to “fit in,” using social learning theory. Where did the breakdowns in his processing occur? 4. If Val hired you to develop a management training program for the senior managers at PPP, what are the key concepts from this chapter that you would use in designing the program? Provide appropriate theoretical rationale to support your position.
rick_s_new_job.docx
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Case Analysis: Rick’s New Job
Case Analysis: Rick’s New Job
Rick recently received an MBA. In university, he was known as smart, hardworking, and
friendly. His good grades landed him an internship with Peterson Paper Products (PPP) to head
their sales department. Near the end of the internship, Val Peterson, the president and founder of
the company, asked Rick to meet him after work to discuss the future.
Peterson Paper Products
Val Peterson founded PPP 17 years ago. It purchases raw paper of varying grades and produces
paper stock for business, personal stationery, and greeting cards. Its annual sales topped $15
million, and it employs 80 to 90 people, depending on demand. Sales gradually declined over the
last two years after steady and sometimes spectacular growth during the previous seven years.
Competition increased markedly over the last three years, and profit margins dwindled. Although
PPP is known for the high quality of its products, consumers are shifting from premium-priced,
high-quality products to products with higher overall value. Through all of these changes, PPP
maintained a close-knit family culture. At least half of the employees have been with the
company since the beginning or are friends or relatives of the Petersons or Mr. Ball, Val’s
partner.
Val Peterson, 53, holds the majority of stock in this privately held company that he founded. He
began working summers in a paper company during high school. He supervised a shift at a paper
plant while he went to college at night. After graduation, he worked at increasingly higher
management levels, occasionally switching employers for a promotion. Eighteen years ago, he
quit his vice presidency with a major paper product manufacturer to start his own company.
Employees see him as charismatic, even-tempered, and reasonable. He spends most of his time
and energy on company business, putting in 12-hour days.
Rosie Peterson, 50, is Val’s wife and the controller for the company. She holds 5 percent of the
company stock. Rosie never went to college, and her accounting methods are rather primitive (all
paper and pencil). Nonetheless, she is always on top of the financial picture and puts in nearly as
many hours as Val. She exerts a great deal of influence on the operations and direction of PPP.
Walter Ball, 61, is both Mr. Peterson’s friend and business partner. He owns 25 percent of the
stock and has known Val since before the start of PPP. He is VP of operations, which means that
he oversees the computer information systems that run the paper production process and handles
the technical side of the business. He is not current on the latest computer or manufacturing
technology, but he loves the paper business. He says he will probably retire at 65, but most say
they will believe it when they see it.
Diane Able, 41, is the customer service manager and is married to Steve Able, the chief engineer.
Diane worked her way up in the company over the last 10 years. She is often asked to assist Mr.
Peterson with projects because of her common sense, and he trusts her to keep information to
herself.
Rick’s Offer
When Rick met Mr. Peterson to “discuss the future,” he was nervous. He knew that Mr. Peterson
liked his work so far, but did not know if it was enough to extend his internship another six
months. So far, he had worked with Mr. Peterson only on special projects and did not know the
rest of the management group well. He was flabbergasted when Mr. Peterson said, “I was
thinking that you might like to work here at PPP full-time and help us out with our sales
department.”
The two of them discussed the problems in the sales area and talked about what could be done to
boost sales. Rick agreed to start the next Monday. During this conversation, Rosie walked in and
suggested that they all go out to dinner. At dinner, Rosie emphasized to Rick that PPP was a
family operation, down-to-earth and informal. “You probably shouldn’t try to change things too
quickly,” she warned. “People need time to get used to you. You have to remember, you’re an
outsider here and everyone else is an insider.” Then Val moved the conversation back to what
the future could be like at PPP.
Rick’s Awakening
During the first few days at work, Rick spent time getting to know the plant and operations,
meeting all the employees, and familiarizing himself with the problems in sales. He met with Val
each morning and afternoon. He also met with the key managers, not only to introduce himself
but also to convey his desire to work collaboratively with them in addressing the problems in
sales. He was conscious not to flaunt his university education and to convey that he recognized
he was a newcomer and had a lot to learn. In the middle of his second week, Val told him that his
reception by the other employees was going very well: “Your enthusiasm and motivation seem to
be contagious. Having you join us shows them that things need to change if we’re going to reach
our goals.”
Rick noticed, however, that the managers always went out in groups, and he had not been invited
along. Also, he was not included in the informal discussion groups that formed periodically
during the day. In fact, the conversation usually stopped when he approached. Everyone was
friendly, he thought; maybe it would just take a little more time.
By his third week, Rick identified some of the problems in the sales department. Among the four
salespeople, morale and productivity were moderate to low. He could not find any sales strategy,
mission, or objectives. The records showed that Val was by far the leading salesperson. The
others indicated that Mr. Peterson “always works with us very closely to make sure we do things
right. If he senses there might be a problem, he steps in right away.” After formulating a plan,
Rick discussed it with Mr. Peterson. “First, I would like to institute weekly sales meetings so we
keep everyone up to date. I also want to create a centralized sales database,” he told him. Mr.
Peterson smiled and agreed. Rick felt he was finally a manager. He did feel that he should have
mentioned his idea for creating a sales department mission and strategy, but recalled Rosie’s
caution about not moving too fast.
Rick discussed with Mr. Ball the possibility of using the centralized computer system to run
word processing and spreadsheet software on terminals. Mr. Ball was concerned that outsiders
could access the data in the spreadsheets. Anyway, he did not think the system could handle that
task because its primary function was production. Puzzled, Rick asked if a PC could be allocated
to him. Mr. Ball said that no one in the company had one.
“Well,” Rick thought, “I’ll just have to bring mine from home.” The next Monday Rick walked
through the office carrying his computer. Several of the other managers looked at him
quizzically. Making light of it he said, “I’m not smart enough to keep everything in my head and
I do not have enough time to write it all down on paper.” As he was setting up the computer, he
got a call from Val: “Rick, that computer you brought in has caused a heck of a ruckus. Can you
lie low with it until I get back late this afternoon?” Rick thought Val sounded strained but
chalked it up to overwork. Rick agreed and left the computer on his desk, partly assembled. Five
minutes later, Rosie walked into his office.
“Do you think it’s funny bringing that thing in here? What are you trying to prove—how
backward we all are? How much better you are with your big initials behind your name? You’re
still an outsider here, buster, and do not forget it.”
Rick tried to explain how much more productive the sales department would be with a computer
and that he had tried to use the company’s computer system. However, Rosie was not listening:
“Did you think about checking with me before bringing that in? With Val or even Walter? Don’t
you think we have a right to know what you’re bringing in here?” Rick knew argument would do
no good, so he apologized for not checking with everyone first. He said he had a meeting with
Val later to talk about it. Rosie said, “Good, talk to Val, but don’t think he calls all the shots
here.”
At the meeting with Val, Val agreed that the computer would certainly help solve the problems
in sales: “But, you have to be sensitive to the feelings of Rosie and the other managers. It would
be best if you did not use the computer for a while until things calm down.”
The next day Walter walked into Rick’s office. He told Rick that he had moved far too fast with
the computer: “That’s not how it’s done here, son. Maybe you’re spending too much time
listening to what Val says. He isn’t really the one to talk to about these kinds of issues. Next time
you just ask old Uncle Walter.”
Rick spent the next few weeks building the database by hand and conducting sales meetings with
his staff. He tried to set up meetings with Mr. Peterson, but Val was usually too busy. One day,
Rick asked Diane Able about not being able to see Mr. Peterson and she said, “You know, you
monopolized a lot of his time early on. Those of us who worked closely with him before you
came were pushed aside so he could spend time with you. Now it’s your turn to wait.”
“Are you the one who’s been spending all the time with him?” Rick asked.
“Well, it’s been me and some of the other managers. We’ve really been taking a beating in sales,
so we need to figure out how to reduce our costs,” Ms. Able answered.
A few weeks later, Rick was called in to Val’s office. Val began, “Rick, you know we’ve been
going through some bad times. We’re reducing head count and I’m afraid you’re one of the
people we’re going to let go. It has nothing to do with your work. You haven’t really been here
long enough to have either succeeded or failed. It’s just that we had unrealistic expectations
about how quickly things in sales would turn around. I feel terrible having to do this and I’ll do
everything I can to help you find another job.”
After packing his things and loading up the car, Rick sat in his car and stared out of the window.
“Welcome to the real world,” he thought to himself.
…
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