Irving Bush, Case Assignment, 10.

1, page 1

Running Head: CASE 10.1

Organizational Behavior

MNGT 5590

Electrolux Clean Ups

Webster University

School of Business and Technology – Extended Studies

Submitted to

Mr. Gail Hinshaw

Submitted by

Irving Bush

September 14, 2009

 Irving Bush, Case Assignment, 10.1, page 2

(1) First, Straberg broke down bearers by creating new cross functional teams. The teams

were designed to bring about new ideas and concept from a strategic level. Next, he

forced his tactical manager’s to work together, somewhat forming self-management

teams. He also brought in outside executives form companies with strong track records in

innovation. All of these groups were formed to build new teams to create new ideas for

the company. Straberg reorganized his company to create a change vision for the future

as he felt profits were declining. His organization was facing increasing costs, while his

middle-market products sales were increasingly losing to international businesses. In

order to save the company, Straberg, also used international or virtual team concepts to

help implement known successes from the global market. The old way of dictating design

of new products and ideas was costing the company undue stress. Employees appeared

tired of being presented products and told to execute the plan. Strasberg’s new way of

doing business empowered employees, saved time and money, and avoided lots of

computer generated glitches. Bottom-line, the company needed to create products that

would provide customer satisfaction in an ever transforming world.

(2) The advantages of having different people from different departments and functional

areas work together are: teams form to tackle specific problems, and increase

camaraderie, trust and performance. In the case of Electrolux, advantages of designers,

engineers, and marketers from different divisions aided the company from a global

perspective. Many new products were bought in which required new testing. Also this

allowed the cross training and collaboration amongst teams. For example, collaboration

amongst engineers and designers allowed broad based knowledge to be shared, thus

building new teams, which if not done correctly could be a costly and extensive period of
 Irving Bush, Case Assignment, 10.1, page 3

time. The team assembled at Electrolux appeared fully equipped to identify mishaps and

possible shortcomings with the development of new products. For example, as a designer

would build or create a product, the engineer would ensure the product was adequate or

sufficient for its use. Also in this case, a heterogeneous group provided an advantage for

Straberg’s company because a richer variety of knowledge and experience was now

available. Ivancevich (2008) note: “as organizational diversity increases, at least with

respect to demographic characteristics, groups will become more heterogeneous in

nature” (p.266).

(3) In an era with intense competition and several low costs products on the market,

Electrolux can use teamwork and groups to succeed by using ideas and concepts to

increase variety and availability of products and at the same time reduce the price paid

for product materials. Groups and teams can be used to help the company develop an

expansion strategy for a future vision. Teams can be enhanced by bringing individuals

with diverse back grounds and skills together. Also, research shows that large companies

are using teams because of their interdependency, motivation, and commitment.

Electrolux will need a well defined cohesive element to reach out globally through virtual

teams down to self management teams to maintain a current competitive product line.