Merti Corporation

Merit Corporation Questions and Answers

1. What was the style/approach of the CEO Kirschner? (please provide a few examples of behavior)

Culture changes:

The Merit’s was a family owned company and operated by family. From story it appears that Kirschner changed the company’s culture from conservative to avant-garde encouraging new innovation and application of new concepts and techniques in the core department on the company that is new product development. This indicates Krischner was very good at change management.

Motivation: Kirschner never expected any one to work more than 8 hrs, he was also sending his staff for Harvard’s Advanced Management Program. He had very good pension plan and generous fringe benefits to keep the employee’s moral high.

Lateral Communication: Kirschner first discussed the troubling problem of new product development and his team approach to resolve it.

Upward Communication: Kirschner appointed Christopher Kane as group lead and made him direct to report to him and requested to provide a bi-weekly progress report so that the Executive Committee could keep abreast of new developments, and a monthly financial report.

Team approach:

With his many years of industry experience and close eye on Market’s movement and consumer’s trend, he was determined that new product development team building is a key to company’s success in such a competitive market.

The Kirschner approach to team was no direct supervision rather he appointed Christopher Kane their lead and requested Kane to report him was to maximize the freedom and flexibility; this has a large impact on team’s productivity especially when the team was to come-up with ideas on new product development that could be durable, but inexpensive, multi-purpose children’s furniture. If there is no enough flexibility at work, in the group or organization the employees would be less likely to come-up with new ideas on new products.

Team Building: Because Kirschner knew that people from different educational background and from different work experience and different culture is required to maximize the new ideas on new product development.

2. What type of culture did the Merit Corp have before this new group was formed? What type of culture did the group experience? (You have not read about “culture” yet, this question refers to your general thoughts about the culture)

A. The Merit Corp was a family owned company and operated by family. From story it appears that Kirschner changed the company’s culture from conservative to avant-garde encouraging new innovation and application of new concepts and techniques in the core department on the company that is new product development.

The group experienced that the culture is not conservative, initially Kirschner was punctual with timing, 8:30 AM to 4:30 PM. However, he mentioned to the new product development group that timing is not a concern as long as they are focusing their energy on new product development goals. There was no dress code or any other sort of constraint on the group from management, Kirschner let group define their ground rules and handle internal conflict resolutions rather than keeping a close watch and interfere in their day to day activities and problems.

3a. Using the model on pg 146 (9-3 Team Effectiveness Model) вЂ" what can you relate to this team (please be specific вЂ" please provide examples)

Context:

• Adequate Resources

Adequate skills in Team: The team building done by Krischner was very thorough, he hired people with intension of creating a new dedicated team that will focus only on developing new products that met the need for durable, but inexpensive, multi-purpose children’s furniture. He hired eight people from totally different backgrounds to work for a common goal. All the team members background was very essentials to build a team that can innovate new ideas on children’s furniture not only using artistic mind but by evaluating market data, current existing company’s products, raw materials and capabilities of engineering department.

Adequate Information: Krischner provided every information that he thought would be a inputs to new product development team.

Separate Office: Krischner provided a separate office for new product development team however one thing to note that I think was inadequate that there was no A.C. installed in the offices.

Time: The group was given enough time to develop a new product, in entire one year they came-up with one new product that was successful and first six months of launch it acquired 20% share of an extremely competitive market and had been widely acclaimed for its low manufacturing cost, durability, and consumer appeal

Additional Staffing: Krischner explained that one secretary who would be working directly with team and that team could use additional support staff if necessary.

• Climate of Trust

Krischner gave full flexibility to the team and didn’t visit them with intension of supervision; he visited them once or twice a week that too provide some useful information. Krischner emphasize on goal and not how they can achieve it, the team received that as a trust and confidence in them. Krischner mentioned that he doesn’t care about the timing as long as you are focusing your energy on common goal.

• Performance Evaluation and reward system

Merit Corporation had generous fringe perks and a good retirement plan. When the new product won the 20% share of an extremely competitive market and had been widely acclaimed for its low manufacturing cost, durability, and consumer appeal, a lunch away party was arranged to celebrate the success that lasted all afternoon.

Composition:

• Abilities of member

The team’s effective contribution depends on knowledge, skills and abilities of individual team member. The new product development team was consisting of individuals from different background, different

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