Cypress Semiconductor Case

ASHWANI GARG Question 1. T.J Rodgers was a very brilliant, tough, outspoken person with a very rational approach for reaching results. Like other competent managers, he was keen on goal setting, good communication, trust, accountability, continuous learning and recognition. a. Continuous Learning: T.J. Rodgers was a continuous learner. He did not take his failures as a setback but rather learnt from them and moved ahead. In the beginning, his company was targeting the niche markets but in 1992 a combination of disasters dragged Cypress into the red, and they lost $21 million. He figured out that this niche market strategy had limitations. The crisis required a new approach to reposition the company for growth. He believed in continuous improvement to gain a competitive advantage through improvement in the cost efficiency and productivity of their operations, implementation of cycle time and inventory reduction programs, and the constant introduction of innovative new products. b. Recognition: One of T.J.Rodgers approach to achieving results was giving recognition and rewards to his employees. He acknowledged the fact that day-to-day interactions made employees feel that their contributions were being appreciated and that they were recognized for their unique qualities. He rewarded his employees with a profit sharing program and arranged parties all around the year for them. Employees not only want good pay and benefits but also want to be valued and appreciated for their work. This motivates and reinforces desired behaviors, boosts the morale of the employees and increases their efficiency. It helps overcome the agency problem and align the interests of shareholders, managers, and employees at other levels in the organization. c. Accountability: On one hand, T.J. Rodgers approach was recognition of his employees work, and at the same time, he ensured that they performed in a manner that was consistent with the goals of the company. He implemented a computer-based