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    Management Theory

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    The scenario entails being a manager that chooses to learn from other companies success/failures - - and instead of always having to start afresh each time a decision is made, I prefer to apply other various management theories.

    Write a memo that entails current/recent events that discusses and explains the use of these two specific theories that the firms you researched believed in

    In the human resource area, moving toward an employee empowerment culture
    In the marketing area, the theory of penetration pricing

    For each of the two bulletpoints, the following should be addressed:
    The issue being addressed that gave rise to employing these theories
    How the theory being followed leads to specific actions on the part of the company
    Results achieved

    If you had been the senior manager in these situations, at those companies, how might you have addressed the situation any differently? What other theory could have been the basis for the decision.

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    Solution Preview

    Application of Theory

    Write a memo that entails current/recent events that discusses and explains the use of these two specific theories that the firms you researched believed in

    In the human resource area, moving toward an employee empowerment culture

    Employee empowerment means improving products or service in which the employees have a degree of discretion to do what they feel is necessary to satisfy the customer. The current event that illustrates the use of this theory was the application of employee empowerment in the US plant of the Chinese company Haier.
    For each of the two bulletpoints, the following should be addressed:

    The issue being addressed that gave rise to employing these theories

    The issue that was being addressed is that Haier had a vertical structure, a remnant from Chinese bureaucracy. When this structure was applied in its US plant there was resentment. The workers were initially not offered health-insurance and the Chinese managers publicly embarrassed employees for their mistakes.

    How the theory being followed leads to specific actions on the part of the company

    Haier applied the theory of employee empowerment culture. It changed its method of management. It called. It changed the management in its US plants from a vertical structure to a lean and ...

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