Case Study: Consolidated Products

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Background - Consolidated Products is a $21 billion dollar company with its headquarters in Atlanta, Georgia. The company has five business units, with Nashville Based Engineered Materials having sales of $2.2 billion, the smallest contributor in the group. Engineered Materials is also the newest member of the group, acquired in 1999. The company culture was based on a more strict and hierarchical model, resulting in fact of 2003 sales reporting an 8 percent decrease of the industry average of a 5 percent increase. Management at Consolidated is convinced that the culture and lack of team building paradigms are the cause of the downturn. However, even with the overall corporation's commitment to team building and cross-functional teams, there is a great deal of resistance from managers at Engineered Materials. Discussion- Part 1 Performance Evaluations Many leaders believe that in order to engender a behavior it must be measured. If there is no measurement or feedback, then many employees believe it is unimportant or irrelevant. Incentives encourage "out of the box thinking" and performance. Team bonuses could be made available based on team performance, product launches, or performance; individual performance or department performance could be measured based on exceeding standards, feedback, and goals. Additionally, if performance on teams is part of overall work evaluation, it will be seen as specific standards that are required for the job. Each team member could
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