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Texana Petroleum Corp.

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by

Amanda Parkhill

on 7 September 2013

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Transcript of Texana Petroleum Corp.

Texana Petroleum Case Study
Background
Alternatives
Solution
Rotate employees and provide opportunities for employees to work in other divisions, even if only temporarily
Set ROI goals at the VP level rather than the General Manager level. The VP would then create a plan outlining how all five divisions are responsible to helping to achieve those goals.

Team Five: Julie Kirby, Jimmy Lavin, Brian Long, Jason Panos, Amanda Parkhill
George Prentice
Newly designated EVP of Domestic Operations at Texana
Goal is to improve the combined performace of the five divisions he oversees
Five Divisions
Petroleum Products
Polymer and Chemicals
Molded Products
Building Products
Packaging Products
Problem Statement
Texana currently suffers from a hostile working relationship among its domestic operations groups due to competing goals coupled with a review and rewards system that does not promote collaboration towards corporate goals.

Theories
Intergroup Conflict
Triggers of Conflict
Diagnosing Conflict
Diagnosing Conflict
Issue in Question
Size of Stakes
Interdependence of Parties
Continuity of Interactions
Leadership
Involvement of Third Parties
Progress
Alternative One
Rotate junior and mid-level employees throughout the operational departments.
Pros: Exposure to other departments and co-workers
Cons: Reduced moral and productivity

Alternative Two
Break up the Polymer and Chemicals Division into internal and external divisions.
Pros: Defined roles allows expansion of external markets and support for internal divisions
Cons: Costly and time intensive

Alternative Three
Set the ROI goals at the Vice President level rather than the departmental general manager level.
Pros: Focuses on overall profitability of Texana, removes intergroup competiveness
Cons: Departure from the current, successful process, may hamper employee moral

Texana Corporation
Lack of communication between Division General Managers
Past practice has been to hire aggressive division managers to grow divisions
Hired internally and externally for division manager positions
Corporate management's goals focused on divisional growth and ROI goals
Now, corporate management thinks a higher ROI is possible through coordination among the divisions
Evaluation process includes semi-annual review of division plans with emphasis on actual vs. budgeted ROI
Pros
Corporate success vs. Division success
Exposure and insight into other divisions
Increased personal relationships
Less ambiguity – all divisions are aware of the other divisions’ roles and responsibilities.

Cons
Reduces divisional autonomy
Time needed to determine the most profitable role for each division
May hurt employee moral

Team Five:
Julie Kirby
Jimmy Lavin
Brian Long
Jason Panos
Amanda Parkhill

The End
Intergroup Conflict
Faultlines
Departments
Geography
Triggers of Conflict
Situational conditions
Barriers to communication
Ambiguous responsibilities
Organizational conditions
Specialization and differentiation
Goal setting
Rewards
Full transcript