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Application of Theories

* Axzo Press. (2002a). Managerial leadership. Boston: ILT. Retrieved from Safari Books Online database.
* Axzo Press. (2002b). Strategic decision making. Boston: ILT. Retrieved from Safari Books Online database.
* Axzo Press. (2003). Organizational communication. Boston: ILT. Retrieved from Safari Books Online database.
* Feldman, D. (2002). Critical thinking: Strategies for decision making. Menlo Park, CA: Crisp Learning. Retrieved from Safari Books Online database.
* Noble, P. M., & Gruca, T. S. (1999). Industrial pricing: Theory and managerial practice. Marketing science, 18(3), 435-455. Retrieved from Business Source Premier database.
* Wilkinson, A. (1998, February). Empowerment: Theory and practice. Personnel Review, 27(1). 40-56. Retrieved from ABI Inform Global database.

Deliverable Length: 500-750 words

Your manager believes in learning from other companies' success stories as well as stories of failure. In particular, she likes to apply various management theories when possible, rather than starting from the beginning every time a decision has to be made. She asks you to write a memo to her addressing the following:

From any recent or current event in the news, discuss and explain 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 these two, explain the following:

* 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.

Solution Preview

* In the human resource area, moving toward an employee empowerment culture
First, employee empowerment means giving the authority to ordinary employee to make decisions without consulting the managers. The extent of these decisions depends on the extent to which the firm gives authority to the employees. In some cases this means making decision on their own.

* The issue being addressed that gave rise to employing these theories
The firm which used employee empowerment is Ford Motor Company. There were issues relating to low level of employee satisfaction, low organizational performance, and strong participation by employees in unions and union related activity. There was pressure not only from the United Automobile Workers Union but also to recognize the international arm of the union.

* How the theory being followed leads to specific actions on the part of the company
Ford Motor Company introduced participative management. Several decision making roles were assigned to the employees. The management delegated some decision-making roles to employees. Even though the top management was in favor of empowerment, some managers did not delegate important decision making. Even now Ford Motor Company continues to empower its employees and uses participative management.

* Results achieved
One opinion of the results achieve is that employees at Ford Motor Company wish to become involved in decision making and take up greater responsibilities. The managers at Ford Motor Company feel that empowerment fulfils the needs of employees, makes ...

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