Management - McGraw-Hill Introduction to Business

Assessing Severe Weather Damage with the Waffle House Index

October 10, 2016

As of this writing, Hurricane Matthew is currently roaring up the Carolina coast. (Hopefully anyone from the area reading this post is doing so in a safe, relatively dry place.) Federal and state officials flooded social media and television urging residents to evacuate the area before the cyclone hit land. Nevertheless, some people ignored their warnings and stayed put. In most cases, the diner chain Waffle House would be among these stubborn stragglers. The company has an official policy in Continue reading →

Management, Operations Management, Branding, Waffle House, Hurricane Matthew, Natural Disasters

Chapter 1: Taking Risks and Making Profits, Chapter 7: Management & Leadership, Chapter 8: Organizational Culture and Structure, Chapter 13: Marketing

Update: Wells Fargo Faces Backlash for Employee Fraud

September 29, 2016

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For the past few weeks the business world has been buzzing with outrage over the Wells Fargo banking scandal. Executives at the company likely hoped the worst was over after getting hit with a $185 million fine for allowing such widespread fraud to occur. But as Senator Elizabeth Warren showed last week, regulators and commentators are far from finished with the company. During a hearing with Wells Fargo CEO John Stumpf in front of the Senate Banking Committee, Senator Continue reading →

Executive Compensation, Banking, Regulation, Management, Fraud, Ethics, Wells Fargo, Consumer Financial Protection Bureau, Senator Elizabeth Warren

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 7: Management & Leadership, Chapter 10: Motivation, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law

Study Shows CEOs with Highest Salaries Lead Lowest Performing Companies

July 28, 2016

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For years, CEOs at large corporations have attracted the public’s anger due to the exorbitant salaries that many executives earn. Companies counter these complaints by explaining that high-level employees only make their millions if they perform well on the job. After all, the stock options and bonuses that often form the bulk of CEO pay only become available once the company clears a certain set of financial benchmarks. This supposedly gives executives more incentive to do a good job since Continue reading →

Compensation, Executive Compensation, CEO, Leadership, Management, Ethics

Chapter 4: Ethics and Social Responsibility, Chapter 7: Management & Leadership, Chapter 10: Motivation

The Problem with Paying Executives Based on Performance

March 29, 2016

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At many large corporations, top executives earn as much as 80 percent of their salaries from performance-based bonuses. The idea is that CEOs will be more likely to do a good job if the company rewards them for success, such as increasing quarterly earnings or raising share prices. According to a new study from the London Business School, however, this widely accepted strategy might not be as effective as many companies think.

First of all, the study argues that contingent Continue reading →

Human Resources, Compensation, Executive Compensation, Management, Ethics

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 7: Management & Leadership, Chapter 10: Motivation, Chapter 11: Human Resource Management

The Startup that Helps Companies Build Employee Morale

February 17, 2016

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At big tech companies like Google and Facebook, employees enjoy a range of benefits that have become almost as famous as the companies themselves. From free smoothies and snacks to complimentary massages, these perks are meant to fulfill the basic needs of staffers so that morale and productivity remain high. In fact, tales of these benefits have reached so far that many workers today would prefer them to increased wages. According to a recent survey by job-listings website GlassDoor, 79 Continue reading →

Human Resources, Benefits, Perks, Wekudo, Management, Motivation

Chapter 1: Taking Risks and Making Profits, Chapter 6: Entrepreneurship, Chapter 7: Management & Leadership, Chapter 10: Motivation, Chapter 11: Human Resource Management

Zappos Goes Bossless

July 11, 2015

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The online shoe retailer Zappos has always set out to be an innovative employer as well as a successful business. Along with quality benefits and perks, CEO Tony Hsieh grants his staff the freedom to do their jobs according to their terms. In fact, recently the Zappos boss put a radical new corporate structure into place that eliminates all traditional managers or job titles. Instead of a traditional hierarchy, employees now work in “circles” that encourage more collaboration and agility. Continue reading →

Human Resources, Labor Relations, Benefits, Innovation, Zappos, Management

Chapter 5: Forms of Business Ownership, Chapter 8: Organizational Culture and Structure, Chapter 10: Motivation, Chapter 11: Human Resource Management

Changing the Way Offices Use the Phone

March 12, 2015

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These days, any office must have a unified communications system in place in order to compete. Years ago this could have been accomplished by installing a series of linked landline phones with conference call capabilities. Now, however, services like Google Voice allow users to ditch their landlines and receive calls directly on their smartphones. Companies currently spend as much as $75 billion per year on Internet voice systems. This figure is expected to increase as disruptive startups take unified communications Continue reading →

Silicon Valley, Product Development, Innovation, Mobile, Management, Human Resources

Chapter 1: Taking Risks and Making Profits, Chapter 7: Management & Leadership, Chapter 8: Organizational Culture and Structure, Chapter 14: Product and Price, Bonus Chapter B: Technology and New Media

American CEOs Earn Millions from Retirement

March 6, 2015

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In 2013 CEO compensation at the nation’s largest companies grew to 204 times higher than the salary of the average worker, a 20 percent increase since 2009. But the enormous wages paid to American executives is far from the only financial perk they receive. Along with inflated salaries, CEOs also enjoy lucrative retirement plans that can see them net tens of millions at the end of their careers.

For instance, Gregg Steinhafel recently stepped down as CEO of Target Continue reading →

Benefits, Retirement, Management, CEO, Ethics, Target, Human Resources, Compensation

Chapter 4: Ethics and Social Responsibility, Chapter 7: Management & Leadership, Chapter 8: Organizational Culture and Structure, Chapter 10: Motivation, Chapter 11: Human Resource Management

The Spotlight Fades on Rockstar Energy

February 19, 2015

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Even though Rockstar wasn’t the first energy drink to hit the market, it didn’t take long for the brand to make a big impact in a crowded field. Consumers quickly responded to Rockstar’s affordable price and large serving size, which set the brand apart from more exclusive products like Red Bull. During its first six years, revenue at Rockstar soared as high as $405 million while it grew at an average annual rate of 103 percent.

By 2007, however, the Continue reading →

Management, Entrepreneurship, Product Development, Food, Rockstar

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 7: Management & Leadership, Chapter 10: Motivation, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion

How Silicon Valley Attracts the Best Talent

January 14, 2015

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For more than a decade Silicon Valley has been the go-to destination for ambitious young professionals looking to make a big name for themselves. After all, the Bay Area suburb is home to tech giants like Google, Apple and Facebook that offer huge starting salaries and even nicer perks. But there are plenty of opportunities for talented careerists beyond the Valley’s most notable names. Startups tend to attract many young coders and engineers as well, even though they don’t pay Continue reading →

Innovation, Management, Hiring, Human Resources, Startups, Compensation, Benefits, Silicon Valley

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 10: Motivation, Chapter 11: Human Resource Management, Bonus Chapter B: Technology and New Media