Problem
Case Study I:
Fred Ferrell is the store manager of the Right-Way Supermarket in Beaumont, a small suburban area of some 1,300 families. The store's staff consists of a produce manager, a meat manager and butcher, five checkers, four stockers, and a receiving clerk. The store operates six days per week from 9 a.m. to 9 p.m.
Last week Ferrell hired Amy Caldwell to replace the store's receiving clerk. Since graduating from high school last June, Amy has worked for one other supermarket full-time. She applied for the job at Right-Way to gain new experiences and because the job paid $1 more per hour than she was making at the other store. Amy likes the retail food business and hopes one day to manage a store of her own. She plans to start school again next fall.
After two, 10-hour days of training under Mr. Ferrell, Amy felt she knew the operation and procedures well enough to proceed on her own. But Mr. Ferrell thought otherwise. For the rest of Amy's first week, Mr. Ferrell was looking over Amy's shoulder on a regular basis. It seemed that Amy couldn't do anything without Mr. Ferrell's checking it out for himself. Amy's tasks included the receipt, inspection, arrangement, and stacking of inventory received from a central supply warehouse owned and operated by the parent company. She was also responsible for the various inventory control procedures and related paperwork.
Over the weekend between her first and second weeks, Amy studied the inventory procedures and records. She roughed out a system for streamlining the handling and felt she had found a way to reduce the amount of paperwork by combining several forms into one and using the computer system to print forms simultaneously. Amy felt if she could sell these proposals to Mr. Ferrell, not only his store, but all stores in the chain, could benefit. After some hasty calculations, she figured that nearly one hour per day would be saved and several hundred dollars in unnecessary forms could be eliminated.
Amy started work at 6:30 a.m. the following Monday, full of enthusiasm. When Mr. Ferrell arrived at 8:00 a.m., Amy was waiting for him at the door, her notes in hand. Before Amy could speak, however, Ferrell asked her what she was doing up front. Amy replied that she had already handled this morning's deliveries and wanted to talk over a "proposal" with him. Mr. Ferrell pulled a piece of paper out of his pocket and began to go over each item on this checklist with Amy. When he got to item 10 on the list, Amy replied that she would take care of that this afternoon. Ferrell told her to take care of it now. Amy tried again to explain that she had some ideas to speed up the receiving operation. Ferrell replied, "You kids are really something else. You've been here a week and already you're running the place. What makes you think you know a better way? The procedures we use come from downtown. That is good enough for me. Now get to those cases out back.
Task
i. What motivational approach is Mr. Ferrell using?
ii. Amy has asked your advice. What would you suggest that she do? What are her alternatives?
iii. What advice would you have for the general manager of Right-Way's Supermarket parent corporation?
Case Study II:
Incarcerated Call Centers
Overcrowding, skyrocketing costs, and high recidivism rates cripple the American penal system. But even with the nation's penitentiaries in such a state, at least one entrepreneur found a way to transform prisoners into productive members of society, both behind bars and on the outside. James Hooker is the founder and CEO of Televerde, a company that seeks businesses willing to buy complex, multimillion-dollar software from tech giants like Cisco, NetApp, and Hitachi. At the heart of Televerde's operation are 250 incarcerated women who work at four different call centers within the Arizona State Penitentiary in Perryville.
Purchased by Hooker in 1995, Televerde grew from a six-person call center running out of a trailer into a profitable operation taking in $12.1 million annually. Detractors claim that Hooker's unconventional staff is robbing law-abiding citizens of work in this already rough job market. But Hooker is quick to point out that the facts read differently. Televerde employees make the federal minimum wage of $7.25, with one-third of each prisoner's salary going back into the system for room and board. Also, the recidivism rate of Televerde alumni is amazingly low. Over the last 14 years only 11% of released Televerde employees have gone back to jail. This is remarkably better than the national average of 40% of female felons returning to custody within just three years. Alumni from the Perryville prison also come out with a heap of savings, averaging $15,000 per prisoner.
Hooker hires back approximately 25% of his former inmate staff after their release. Many obtain their high school diploma, a requirement for employment at Televerde, while incarcerated, with one former prisoner even going on to obtain her MBA at Arizona State University. Besides its contributions to the lives of its employees and the Perryville prison in general, Televerde simply runs a better operation than its competitors. In a study conducted comparing Televerde with a rival company, Televerde delivered five times as many high-quality leads than its competitor. Hooker attributes this to his staff, whom he claims are "50 times more motivated than someone on the outside."
Task
i. Could the Televerde system work in other states?
ii. What is a key strength of the Televerde system?