Organizational Behaviour

Topics: Employment, Keg, Brewing Pages: 7 (2298 words) Published: May 13, 2013
Assignment #1
Part A
Part A consists of three questions. Be sure to include both the questions and the responses in the document you submit. Your total combined responses for these three questions should not exceed 1000 to 1500 words.

1. Marketing specialists at Napanee Beer Co. developed a new advertising campaign for summer sales. The ads were particularly aimed at sports events where Napanee Beer sold kegs of beer on tap. The marketing group worked for months with a top advertising firm on the campaign. Their effort was successful in terms of significantly higher demand for Napanee Beer's keg beer at sports stadiums. However, the production department had not been notified of the marketing campaign and was not prepared for the increased demand. The company was forced to buy empty kegs at a premium price. It also had to brew some of the lower priced keg beer in vats that would have been used for higher priced specialty beer. The result was that Napanee Beer sold more of the lower priced keg beer and less of the higher priced products that summer. Moreover, the company could not initially fill consumer demand for the keg beer, resulting in customer dissatisfaction.

Use open systems theory to explain what occurred at Napanee Beer Co. Begin with a brief description of open systems theory. Use your own words (paraphrase) and remember to cite all sources using APA style.

The open systems theory states that organizations are entities that continually exchange resources with its external environment. The organization is dependent on the external environment for resources such as raw materials, employees, financial resources, and information and equipment which are the organizations inputs. Those inputs are used by the organizations internal subsystems, such as production and marketing, and are subsequently turned into outputs such as products, services, employee behaviours, profits/ losses, and waste/ pollution (McShane & Steen, 2009, p. 4).

According to the open systems theory (McShane & Steen, 2009, p. 4), the organization Napanee Beer Company’s internal subsystems were not operating efficiently. Due to the lack of communication between the marketing group and the production team, production was unaware of the increase in demand for the product and did not order enough inputs to meet this larger demand. Consequently, the materials used were much more expensive than they would have been had they been ordered earlier. This oversight cost the company sales on higher priced specialty beer and caused customer dissatisfaction. Had the production team been aware of the success of the marketing campaign, which was geared towards sporting events where Napanee Beer sold kegs of beer on tap, they would have been able to order the appropriate amount of kegs, saving the company a lot of money. This is not an issue between the external and internal environment but an issue with Napanee’s internal subsystems effectiveness (McShane & Steen, 2009, p. 4.). The lack of communication between departments weakened the company’s ability to maximize its input to output capability; therefore, the company was not functioning at a high level of efficiency (McShane & Steen, 2009, p. 5.). 2. The sales office of a large industrial products wholesale company has an increasing problem: salespeople are arriving late at the office each morning. Some sales reps go directly to visit clients rather than showing up at the office as required by company policy. Others arrive several minutes after their appointed start time. The vice-president of sales doesn't want to introduce time clocks, but this may be necessary if the lateness problem isn't corrected.

Using the MARS model of individual behaviour, diagnose the possible reasons salespeople may be engaging in this “lateness” behaviour. Begin with a brief description of the MARS model. Use your own words (paraphrase) and remember to cite all sources using APA style.

The MARS model...
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