Textbook is: Organizational Behavior Improving Performance and Commitment in the Workplace Seventh Edition JASON A. COLQUITT University of Notre Dame JEFFERY A. LEPINE Arizona State University MICHAEL J. WESSON Auburn University
CASE: MATTEL
This case study is found on pages 504 and is primarily related to chapter 15. Before responding to 15.1, 15.2, and 15.3, please respond to 15.0, pasted below:
Question:
15.0 Define Functional Structure and divisional structure and give examples of each.
CASE: MATTEL
Although ex-CEO Margo Georgiadis’ restructuring ideas were lauded internally at Mattel and many believed they were starting to show results, the environment shifted quickly for the toy company when retailer Toys ‘R’ Us declared bankruptcy and financial results drove Mattel’s stock price to a heavy decline (73 percent) and a 10-year low.
Georgiadis resigned less than a year after she started (to become CEO of Ancestry.com). One of Mattel’s board members (appointed by Georgiadis), Ynon Kreiz, became the newly appointed chairman and CEO. Kriez is Mattel’s fourth CEO in 4 years and has experience largely in entertainment and media-distribution along with a background in licensing and merchandising. He is the third CEO in row with no experience in making toys per se.
Not wasting any time and less than 3 months after Kriez starting, Mattel announced a reduction of more than 2,200 jobs, which equaled 22 percent of its non-manufacturing workforce. In addition, manufacturing plants in New York and Mexico were planning to be sold. Continuing the “structural simplification program” that was already started, Kreiz hopes to realize a $650 million gain. However, the restructuring plan has created a lot of anxious employees, and employees state that morale is near an all-time low. Asked about how he plans to reassure employees, Kriez stated that “It’s town halls. It’s small group meetings. It’s one-onone meetings. It’s traveling to all of our offices around the world and
meeting people on the ground at all levels of the company. At the same time, part of my responsibility is less talk and more action. What we try to bring to the organization now is clarity and focus. If you do that, and you’re transparent and forthcoming, the message travels. People eventually understand where you are heading and become part of the journey.”*
Strategically, Kriez believes that Mattel’s future lies with creating its own media empire. In order to accomplish this, his plans largely revolve around turning Mattel’s brands into movies, television series, and video games. In order to accomplish this, Kriez has created an in-house studio —Mattel Films—within the company. Two major films based around Barbie (starring Margot Robbie) and a live-action Hot Wheels are set for production and release in 2020–2021. One investment analyst replied that “Mattel is doing what should have been done 10 years ago.”
15.1 If you were a Mattel employee, would you be encouraged by what CEO Ynon Kriez said about how he is following up on restructuring? Is there a way he could have said it better?
15.2 Given that Mattel’s structure is still organized around brands (toys), how do you expect a new film division to fit in from a structural standpoint?
15.3 How might Mattel change its structure to be more efficient or
successful?
