Problem Solving Application CaseMeToo Just Do It Nike, one of the world's most valuable brands, enjoys a stellar reputation for its products and image, but its reputation as a company has been tainted by widespread sexual harassment allegations within the company This activity is important because understanding a major sexual harassment problem at a large company requires considering the many factors that may have caused it to develop over a long period of time The goal of this activity is for you to trace various issues that may have led to the prevalence of sexual harassment and discrimination at Nike, as well as to evaluate possible remedies Read about sexual harassment at Nike Then, using the three step problem solving approach, answer the questions that follow Business events that move to strip clubs, emails in your own inbox about parts of your body, lewd and vulgar comments, and more commonly but similarly troublingunfair pay and promotion practices these are a subset of complaints revealed in a survey conducted by female employees at Nike The findings Illustrated systematic sexual harassment and discrimination Supporting these claims are a long history of complaints to HR and leaders within the company about inappropriate behavior by a number of male leaders Women comprise nearly 50 percent of the company's workforce but occupy only 38 percent of management level and 29 percent of vice president positions 1 Female employees shared these results with CEO Mark Parker in an effort not only to improve the situation for women at Nike, but also to improve Nike Their efforts provide yet another example of how employees are organizing and wielding power and Influence to change leadership, culture, and practices at their employers 2 How Did This Happen The allegations and evidence are wide ranging, but many attribute misconduct not only to the perpetrators but also to their superiors who have tolerated or looked the other way For instance, numerous implicated executives are linked to former company president Trevor Edwards His charismatic personality and stellar performance had taken him to the heights of the organization, and many believed he was next in line for the CEO job But many senior leaders who ascended the ranks were largely male and considered a part of an elite groupF O T , or Friends of Trevor 3 Although Nike claims the behaviors were the actions of an insulated few and has since fired at least 11 executives as a result, the fact remains that many individuals in power destroyed relationships and undermined the careers of others Complicit were HR policies, practice, and people who failed to sufficiently act on and provide consequences for inappropriate behavior These detrimental actions eroded performance, trust, and a sense of justice, along with fostering conflict and a culture many describe as discriminatory and abusive to women The Costs In addition to damaging the careers of the terminated executives, widespread misconduct exposes the company to tremendous legal liability, reputational damage, investor pressure, and the alienation of women both inside and outside the company Expanding product offerings for female customers is a major component of the company's strategy Particularly troublesome for the remaining leaders is the likelihood of a class action lawsuit, in which more than 500 employees will seek compensation from Nike for sexual harassment, pay discrimination, and unfair promotion practices 4 Reactions CEO Parker and the remaining senior leadership team have responded in several ways Parker directly and publicly acknowledged the problems and apologized to employees in a town hall meeting, established a complaint hotline, set up unconscious bias training, required specific training for managers, appointed Nike's first chief diversity and inclusion officer, revamped its pay structure and provided raises for approximately 7500 employees, or 10 percent of its global workforce Nike also has adopted a gender blind resume review process and is tying bonuses more prominently to overall company performance 5 Part of Parker's apology Included, I apologize to the people on her team who were excluded, and I apologize if some of those same people felt they had no one to turn to I want everyone at Nike to know their voices do matter and your bravery is making us better 6 But even after all of the company's corrective actions, Parker and others feel the work Is far from finished Assume you are CEO Parker and you want to (1) make amends with the important stakeholders involved, and (2) put Nike on a positive track for the future Drawing on what you learned in this chapter what else would you do Apply the 3 Step Problem Solving Approach Step 1 Define the problem Look first at the Outcomes box of the Organizing Framework (Figure 12 9) to help identify the important problem(s) in this case Remember that a problem is a gap between a desired and current state State your problem as a gap and be sure to consider problems at all three levels If more than one desired outcome is not being accomplished, decide which one is most important and focus on it for Steps 2 and 3 Cases have key players, and problems are generally viewed from a particular player's perspective You need to determine from whose perspectiveemployee, manager, team, or the organizationyou're defining the problem In this case you're asked to assume the role of CEO Mark Parker Use details in the case to determine the key problem Don't assume, infer, or create problems not included in the case To refine your choice, ask yourself, why is this a problem Explaining why helps refine and focus your thinking Focus on topics in the current chapter, because we generally select cases illustrating concepts specifically located within the current chapter Step 2 Identify causes Using material from this chapter and summarized in the Organizing Framework, identify what are the causes of the problem you identified in Step 1 Remember, causes tend to appear in either the Inputs or Processes boxes Start by looking at the Organizing Framework and decide which person factors, if any, are most likely causes of the defined problem For each cause, explain why this is a cause of the problem Asking why multiple times is more likely to lead you to root causes of the problem For example, do executive characteristics help explain the problem you defined in Step 1 Follow the same process for the situation factors For each ask yourself, why is this a cause By asking why multiple times you are likely to arrive at a complete and more accurate list of causes Again, look to the Organizing Framework for this chapter for guidance Did particular policies or practices play a role Now consider the Processes box in the Organizing Framework Are any processes at the individual, group team, or organizational level potential causes of your defined problem For any process you consider, ask yourself, why is this a cause Again, do this for several iterations to arrive at the root causes To check the accuracy or appropriateness of the causes, be sure to map them onto the defined problem and confirm the link or cause and effect connection Step 3 Make your recommendations for solving the problem Consider whether you want to resolve it, solve it, or dissolve it (see Section 1 5) Which recommendation is desirable and feasible Given the causes you identified in Step 2, what are your best recommendations Use material in the current chapter that best suits the cause Consider the OB in Action and Applying OB boxes, because these contain insights into what others have done Be sure to consider the Organizing Frameworkboth person and situation factorsas well as processes at different levels Create an action plan for implementing your recommendations and be sure your recommendations map onto the causes and resolve the problem Footnotes 1 J Creswell, K Draper, and R Abrams, At Nike, Revolt Led by Women Leads to Exodus of Male Executives, The New York Times, April 28, 2018, https www nytimes com 2018 04 28 business nike women html 2 S Cowley, Nike Will Raise Wages for Thousands after Outcry Over Inequality, The New York Times , July 23, 2018, https www nytimes com 2018 07 23 business nike wages raises html 3 J Creswell, K Draper, and R Abrams, At Nike, Revolt Led by Women Leads to Exodus of Male Executives, The New York Times, April 28, 2018, https www nytimes com 2018 04 28 business nike women html 4 R Greenfield and E Novy Williams, Nike Gets Tripped Up While Trying to Change Its Culture, Bloomberg BusinessWeek, August 30, 2018, https www bloomberg com news articles 2018 08 30 nike gets tripped up while trying to change its culture 5 S Cowley, Nike Will Raise Wages for Thousands after Outcry Over Inequality, The New York Times, July 23, 2018, https www nytimes com 2018 07 23 business nike wages raises html 6 Kevin Draper and Julie Creswell, Nike's CEO Vows Changes After Claims of Workplace Harassment and Bias, The New York Times Company, May 5, 2018, https www nytimes com 2018 05 05 business mark parker nike html How do the percentages of women in VP positions and management positions at Nike compare to the percentage of women in Nike's workforce Multiple Choice percentage of VPs is higher and percentage of managers is lower percentage of VPs is lower and percentage of managers is the same percentage of VPs and managers are both lower percentage of VPs and managers are both higher percentage of VPs is lower and percentage of managers is higher

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Problem-Solving Application CaseMeToo: Just Do It! Nike, one of the world's most valuable brands, enjoys a stellar reputation for its products and image, but its

Problem-Solving Application CaseMeToo: Just Do It!

Nike, one of the world's most valuable brands, enjoys a stellar reputation for its products and image, but its reputation as a company has been tainted by widespread sexual harassment allegations within the company. This activity is important because understanding a major sexual harassment problem at a large company requires considering the many factors that may have caused it to develop over a long period of time.

The goal of this activity is for you to trace various issues that may have led to the prevalence of sexual harassment and discrimination at Nike, as well as to evaluate possible remedies.

Read about sexual harassment at Nike. Then, using the three-step problem-solving approach, answer the questions that follow.

Business events that move to strip clubs, emails in your own inbox about parts of your body, lewd and vulgar comments, and more commonly but similarly troublingunfair pay and promotion practices; these are a subset of complaints revealed in a survey conducted by female employees at Nike. The findings Illustrated systematic sexual harassment and discrimination.

Supporting these claims are a long history of complaints to HR and leaders within the company about inappropriate behavior by a number of male leaders. Women comprise nearly 50 percent of the company's workforce but occupy only 38 percent of management level and 29 percent of vice president positions.¹

Female employees shared these results with CEO Mark Parker in an effort not only to improve the situation for women at Nike, but also to improve Nike. Their efforts provide yet another example of how employees are organizing and wielding power and Influence to change leadership, culture, and practices at their employers.²

How Did This Happen?

The allegations and evidence are wide-ranging, but many attribute misconduct not only to the perpetrators but also to their superiors who have tolerated or looked the other way. For instance, numerous implicated executives are linked to former company president Trevor Edwards. His charismatic personality and stellar performance had taken him to the heights of the organization, and many believed he was next in line for the CEO job. But many senior leaders who ascended the ranks were largely male and considered a part of an elite groupF.O.T., or Friends of Trevor.³

Although Nike claims the behaviors were the actions of an insulated few and has since fired at least 11 executives as a result, the fact remains that many individuals in power destroyed relationships and undermined the careers of others. Complicit were HR policies, practice, and people who failed to sufficiently act on and provide consequences for inappropriate behavior. These detrimental actions eroded performance, trust, and a sense of justice, along with fostering conflict and a culture many describe as discriminatory and abusive to women.

The Costs.

In addition to damaging the careers of the terminated executives, widespread misconduct exposes the company to tremendous legal liability, reputational damage, investor pressure, and the alienation of women both inside and outside the company. Expanding product offerings for female customers is a major component of the company's strategy. Particularly troublesome for the remaining leaders is the likelihood of a class action lawsuit, in which more than 500 employees will seek compensation from Nike for sexual harassment, pay discrimination, and unfair promotion practices.⁴

Reactions

CEO Parker and the remaining senior leadership team have responded in several ways. Parker directly and publicly acknowledged the problems and apologized to employees in a town hall meeting, established a complaint hotline, set up unconscious bias training, required specific training for managers, appointed Nike's first chief diversity and inclusion officer, revamped its pay structure and provided raises for approximately 7500 employees, or 10 percent of its global workforce. Nike also has adopted a gender-blind resume review process and is tying bonuses more prominently to overall company performance.⁵

Part of Parker's apology Included, "I apologize to the people on her team who were excluded, and I apologize if some of those same people felt they had no one to turn to. ... I want everyone at Nike to know their voices do matter and your bravery is making us better." ⁶But even after all of the company's corrective actions, Parker and others feel the work Is far from finished.

Assume you are CEO Parker and you want to: (1) make amends with the important stakeholders involved, and (2) put Nike on a positive track for the future. Drawing on what you learned in this chapter what else would you do?

Apply the 3-Step Problem-Solving Approach

Step 1: Define the problem.

Look first at the Outcomes box of the Organizing Framework (Figure 12.9) to help identify the important problem(s) in this case. Remember that a problem is a gap between a desired and current state. State your problem as a gap and be sure to consider problems at all three levels. If more than one desired outcome is not being accomplished, decide which one is most important and focus on it for Steps 2 and 3.
Cases have key players, and problems are generally viewed from a particular player's perspective. You need to determine from whose perspectiveemployee, manager, team, or the organizationyou're defining the problem. In this case you're asked to assume the role of CEO Mark Parker.
Use details in the case to determine the key problem. Don't assume, infer, or create problems not included in the case.
To refine your choice, ask yourself, why is this a problem? Explaining why helps refine and focus your thinking. Focus on topics in the current chapter, because we generally select cases illustrating concepts specifically located within the current chapter.

Step 2: Identify causes. Using material from this chapter and summarized in the Organizing Framework, identify what are the causes of the problem you identified in Step 1. Remember, causes tend to appear in either the Inputs or Processes boxes.

Start by looking at the Organizing Framework and decide which person factors, if any, are most likely causes of the defined problem. For each cause, explain why this is a cause of the problem. Asking why multiple times is more likely to lead you to root causes of the problem. For example, do executive characteristics help explain the problem you defined in Step 1?
Follow the same process for the situation factors. For each ask yourself, why is this a cause?By asking why multiple times you are likely to arrive at a complete and more accurate list of causes. Again, look to the Organizing Framework for this chapter for guidance. Did particular policies or practices play a role?
Now consider the Processes box in the Organizing Framework. Are any processes at the individual, group/team, or organizational level potential causes of your defined problem? For any process you consider, ask yourself, why is this a cause?Again, do this for several iterations to arrive at the root causes.
To check the accuracy or appropriateness of the causes, be sure to map them onto the defined problem and confirm the link or cause and effect connection.

Step 3: Make your recommendations for solving the problem. Consider whether you want to resolve it, solve it, or dissolve it (see Section 1.5). Which recommendation is desirable and feasible?

Given the causes you identified in Step 2, what are your best recommendations? Use material in the current chapter that best suits the cause. Consider the OB in Action and Applying OB boxes, because these contain insights into what others have done.
Be sure to consider the Organizing Frameworkboth person and situation factorsas well as processes at different levels.
Create an action plan for implementing your recommendations and be sure your recommendations map onto the causes and resolve the problem.

Footnotes

1. J. Creswell, K. Draper, and R. Abrams, "At Nike, Revolt Led by Women Leads to Exodus of Male Executives," The New York Times, April 28, 2018, https://www.nytimes.com/2018/04/28/business/nike-women.html.

2. S. Cowley, "Nike Will Raise Wages for Thousands after Outcry Over Inequality," The New York Times, July 23, 2018, https://www.nytimes.com/2018/07/23/business/nike-wages-raises.html.

3. J. Creswell, K. Draper, and R. Abrams, "At Nike, Revolt Led by Women Leads to Exodus of Male Executives," The New York Times, April 28, 2018, https://www.nytimes.com/2018/04/28/business/nike-women.html.

4. R. Greenfield and E. Novy-Williams, "Nike Gets Tripped Up While Trying to Change Its Culture," Bloomberg BusinessWeek,August 30, 2018, https://www.bloomberg.com/news/articles/2018-08-30/nike-gets-tripped-up-while-trying-to-change-its-culture.

5. S. Cowley, "Nike Will Raise Wages for Thousands after Outcry Over Inequality," The New York Times, July 23, 2018, https://www.nytimes.com/2018/07/23/business/nike-wages-raises.html.

6. Kevin Draper and Julie Creswell, "Nike's CEO Vows Changes After Claims of Workplace Harassment and Bias," The New York Times Company, May 5, 2018, https://www.nytimes.com/2018/05/05/business/mark-parker-nike.html.

How do the percentages of women in VP positions and management positions at Nike compare to the percentage of women in Nike's workforce?

Multiple Choice