A Shared Sense of Purpose

After reading the assigned Week 3 Chapters 10-13, complete the following Case Assignment in a Microsoft Word document. 

Please read the Case in the News, DTE Energy Ignites Employees with a Shared Sense of Purpose, at the end of Chapter 13 on pages 401-403 in the textbook, and answer the ‘Questions for Discussion’ (1-3) that follow it.

https://bookshelf.vitalsource.com/reader/books/9781264250196/epubcfi/6/60%5B%3Bvnd.vst.idref%3Dchapter13%5D!/4/2/46/20/12/10/1:445%5Bths%2C%20pa%5D

Jones, G. R. (2021). Contemporary Management (12th Edition). McGraw-Hill Higher Education (US). https://bookshelf.vitalsource.com/books/9781264250196

Case in the News [LO13-1, 13-2, 13-3, 13-4]  DTE Energy Ignites Employees with a Shared Sense of Purpose    As an energy utility, Detroit-based DTE Energy serves more than 2 million electricity customers and more than a million natural-gas customers in southeastern Michigan. It also owns business units that operate power projects, ship natural gas through pipelines, engage in energy trading, and more. It employs more than 10,000 workers in Michigan and other states.    When Gerry Anderson became president of DTE in 2004, its performance was mediocre: costs exceeded goals, stock value was underperforming, customers were dissatisfied, and employees were disengaged from their work. Attempts to improve performance with new training programs, compensation plans, and greater supervision had little impact. On that unsteady foundation, DTE was unprepared to weather the shock of the Great Recession beginning in 2008. The auto companies that had once brought prosperity to Michigan, along with their suppliers, found themselves teetering on the edge of bankruptcy, closing plants, and laying off employees. That would bring a tremendous drop in the demand for energy. The company estimated it would lose $200 million in revenue.    Anderson could keep DTE afloat with drastic layoffs, but he wanted to do something different. He announced that the company was sticking to its value of continuous improvement, including the principle that layoffs are a last resort. He challenged managers to find ways to cut costs by $200 million so they could avoid layoffs altogether. Then he shared with all employees a video in which he presented his challenge and commitment. As the months passed, DTE’s executives were astonished to see costs falling below budgeted levels. Newly energized employees were finding one way after another to operate more efficiently so they could keep everyone employed. By the following year, with zero layoffs, the company had to revise its projected profits upward to reflect the performance improvement.    From this experience, Anderson concluded that a shared sense of purpose has a practical value to a company: It energizes employees at all levels to give of themselves because they care. At that point, as CEO as well as president, he set about making purposefulness part of DTE’s culture. He portrayed the company as a necessary part of the community. As Michigan’s people struggled through the recession, Anderson and the other managers communicated that making energy available to Michigan’s residents was a way to empower their communities to get stronger. The more efficiently DTE operated, the better off its customers and its community would be. The company expressed this vision in a video that showed workers on the job at all levels of the organization, along with a message that the energy they provided is the “lifeblood of communities and the engine of progress.” DTE incorporated the message into its training programs and meetings. According to DTE’s surveys of employee engagement, employees have become more committed to their work and more satisfied with their jobs.    Several years into the purpose-driven culture, however, Anderson realized that union employees were not on board as managers and salaried workers were. In a meeting between company executives and union leaders, a safety report detailed exceptional performance, yet the tone of the meeting was mostly critical. So Anderson spoke from the heart and asked how they could work together on addressing the engagement of the union members, who were also Anderson’s employees. The union leaders replied that engagement was poor because supervision was poor. Rather than defending the company’s first-line management, Anderson agreed to address the issue. This provided a favorable context for management and union to define a shared purpose: engaging unionized employees and achieving continuous improvement.    In the years that followed, Anderson further engaged employees by broadening his message of purpose. The idea of the company being a force for growth and prosperity in its community now extends to community service and greater use of renewable energy sources. Employees serve hundreds of community nonprofits each year, including the establishment of new schools in Detroit. DTE has committed to reducing its carbon emissions by more than 80% by 2050, including the replacement of all its coal-burning power plants by 2040.    Since DTE has begun motivating employees with a shared purpose, its business performance has improved significantly. Between 2008 and 2018, its stock price more than tripled. It also has become a desirable place to work, landing on Indeed’s list of the 50 Best Places to Work, based on employees’ reviews of their experiences with the company. This is a practical advantage in a tight labor market, especially because DTE expects about half its workforce to reach retirement age over the next decade. Anderson recently handed over the reins of the company to chief operating officer Jerry Norica in a long-planned succession move. According to Anderson, one of the most important responsibilities of any CEO is to hand off the job to a great successor at the right time. Anderson will stay on as the company’s executive chairman.    page 402     Questions for Discussion    1.How could expectancy theory explain the success of DTE Energy’s approach to motivating employees during the Great Recession?    

2.How well do need theories support Anderson’s approach to motivating employees? Would these models alone have prepared him to solve this challenge? Why or why not?    

3.In DTE’s effort to motivate its employees, what were the goals? What kind(s) of reinforcement existed? Would you have expected these to be effective? Why or why not?    

 

Sources: DTE Energy, “About DTE,” www.newlook.dteenergy.com, accessed March 10, 2020; J.C. Reindl, “DTE Names New CEO Jerry Norcia to Replace Gerry Anderson,” Detroit Free Press, www.freep.com, June 24, 2019; R. Damico, “Amal Berry Works to Make Sure DTE Energy Co.’s 10,000 Employees Are Included,” Crain’s Detroit Business, www.crainsdetroit.com, March 17, 2019; S. Welch, “Crain’s Newsmaker: Gerry Anderson, Chairman and CEO, DTE Energy Co.,” Crain’s Detroit Business, www.crainsdetroit.com, accessed January 8, 2019; J. Clifton, “Culture Is Personal to DTE Energy CEO Gerry Anderson,” Gallup, www.gallup.com, accessed January 8, 2019; L.D. Green, “Want Your Business to Do Well? Do Some Good,” Crain’s Detroit Business, www.crainsdetroit.com, October 29, 2018; R.E. Quinn and A.V. Thakor, “Creating a Purpose-Driven Organization,” Harvard Business Review, July–August 2018, 78–85; J. Oostin, “DTE, Consumers Boost Renewable Energy Goals,” Detroit News, www.detroitnews.com, May 18, 2018; C. Livengood, “DTE, Consumers Agree to 25 Percent Renewable Energy Goal,” Crain’s Detroit Business, www.crainsdetroit.com, May 18, 2018; J. Clifton, “How DTE Energy Emerged Stronger after the Great Recession,” Gallup, https://news.gallup.com, December 13, 2017; J. Clifton, “How to Engage a Union Workforce: One CEO’s Lessons,” Gallup, https://news.gallup.com, December 14, 2017; A. Dixon, “DTE Energy Ranks High in ‘50 Best Places to Work,’” Michigan Chronicle, https://michronicle.com, July 25, 2017.

Type your answers to the questions in a Microsoft Word APA 7th ed. format paper. The paper is required to include Title and Reference Pages. The questions are required to be used as APA Level 1 Topic Headings. An Introduction and Summary are not required.

Please click on the link for the APA 7th ed. format APA paper template. You can type directly in the template and submit it. Please be sure to click ‘Save’ when it opens.

MAN1021 APA 7th ed. Format Paper Template for Case Assignments.docx

Please read each question carefully and answer all the questions in their entirety.

It is required to support your responses with cited information from the sources you used by providing APA 7th ed. format in-text parenthetical and/or narrative citations. Direct quotes are not accepted. All information is required to be paraphrased in your words and cited from the sources appropriately. All sources are required to be published from 2013 to present.

Type your answers to the questions in a Microsoft Word APA 7th ed. format paper. The paper is required to include Title and Reference Pages. The questions are required to be used as APA Level 1 Topic Headings. An Introduction and Summary are not required.

Please read each question carefully and answer all the questions in their entirety. It is required to support your responses with cited information from the sources you used by providing APA 7th ed. format in-text parenthetical and/or narrative citations. Direct quotes are not accepted. All information is required to be paraphrased in your words and cited from the sources appropriately. All sources are required to be published from 2013 to present.

When citing information from the Case Study article provide the course textbook as your source. You can also research journal articles and professional business sources in the Online Keiser Library to use as sources to support your responses.

Please note: It is required to provide the references for all the sources you used on the Reference Page in correct APA 7th ed. format.

The following are not accepted sources:Wikipedia, Wiki websites, Blogs, encyclopedias, bibliography.com, other textbooks, books, online books, book reviews, dictionaries, newspapers, online essays, other students’ papers, assignments, and essays found in online websites, Dissertations, White Pages, videos, .edu websites, job search websites such as Indeed, Monster, etc., and non-professional online websites.

Submit your paper via the assignment link above by Sunday of Week 3 by 11:59 PM ET. This assignment is required to be submitted via the link above as a Microsoft Word document. Please do not submit your paper as Submission Text or Comments or in Pages, Notes, Google Docs, or PDF format. 

Please read and follow the Grading Rubric below in an effort to earn full credit for your work.

Case Assignment Rubric

Thoroughly answered all of the questions: 50

References and citations to course or other source material: 20

Spelling/Grammar at college level: 10

Quality and Content of APA formatting: 20

TOTAL: 100 points

 
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