Brinkerhoff Case Study

Objectives

EDGE Consulting Group Ltd. ascertained four problem areas that Brinkerhoff International Inc. is currently facing and noted their aligned solutions. Also included are pros and cons of each solution in order for upper management to decide the best course of action. We trust that the cumulative solution presented at the end of this analysis will increase Brinkerhoff’s productivity by 15-20%, efficiency by 10-17%, and job satisfaction by 25-30% making it the best alternative to implement.

Issue 1: Inconsistency between Management

Both Rick Kopulos and Tom Rossick have greatly contradicting styles of managing their rigs. The distinguishing characteristics between the two managers, aside from the styles of management, can be found in the total performance ratings of their rigs. Rig #1-E, managed by Kopulos, is contributing $714,739 to the total revenue compared to $403,636 from Rig #20, managed by Rossick. Both managers have similar position power and task structure, however they differ in the relationships they hold with the lower level workers of their rigs. Kopulos has good leader to member relationships that has allowed him to develop trust. He is able to leverage this ability to create a small, tightly knit community that is highly motivated to perform. On the other hand, Rossick lacks quality people-to-people relationships which greatly hinder the performance of Rig #20.

Solution: Implement leadership training programs for rig managers

Based on Conger’s Study of Leadership Training, we suggests training be provided to all managers, using all four leadership approaches. In order to facilitate the training, scheduled leadership trainers will work with 2 managers at a time starting with the lowest performing rigs. The goal is to train all current managers within 3 years and to make the training process an ongoing requirement for future management positions. The purpose of targeting managers to receive leadership training is because they have the most people-to-people contact. Managers have the responsibility of communicating between high level administrators, other managers, and lower level rig workers. We believes quality trained managers will create the largest marginal growth in the long run.

1. Feedback Approach

a. The Rig’s management leaders must be self-aware of their own individual leadership abilities to be an effective leader. This better understanding of their strengths and weaknesses will improve their performance.

b. We believe that sending Tom Rossick to this training program will help him reevaluate his own leadership performance as well. He will learn that his weakness lies in building sustainable leader-member relationship and that quality cohesive relationships in the oil business are the key to success. In addition, self-awareness will allow Tom Brinkerhoff to seek improvement opportunities to turn his weaknesses into strengths.

2. Personal Growth Approach

a. Leaders need to have the passion to lead and willingness to grow in order to be successful and influential leaders. Follows are influenced by their leader’s passion and they will emulate their dedication.

b. Managers are trained to lead by example and this program will reinforce the natural leaders within them. Their willingness to learn will set the stage for successful leadership experiences.

3. Skill Building Approach

a. We believe that practice makes perfect and this training will slowly develop the managers to quality leaders.

b. Rotations are being used to temporary substitute current managers to free up longer training sessions.

4. Conceptual Awareness Approach

a. Part of the training will teach the managers the conceptual theories of leadership. The more they know about how to lead, the more likely they will apply what they have learned to their daily work life.

Pros

1. Quality leadership will improve the overall performances of the rigs one at a time. This will translate to a stronger company structure and set the stage for higher company growth in the future.

Cons

1. The effects of the training will not be immediate. Managers will not be super leaders in the beginning, but their overall performance will show in the long term.

2. There is substantial cost to sending all our managers for training and it will cost the rig to temporary find a short term replacement to manage the work until the managers get back.

Issue 2: Lack of Motivational Techniques

The employees of Brinkerhoff International are not motivated to achieve higher levels of performance and as a result they are under-performing. The employees of the organization know that their increased efforts will not translate into further rewards and thus they put as little effort into their work as necessary to earn their wages. It is known that the oil and gas drilling industry in northern Canada typically involves rough, dirty, and dangerous work with high risks and high uncertainties. A rig only performs well when the workers of that rig work well together and with their rig manager and a well performing rig leads to increased financial success. For example, Rick Kopulos is well liked among his rig workers and thus is considered a good manager, leader, and motivator. As a result, Kopulos’ rig #1-E is far outperforming all the others. Brinkerhoff bases its success on its ability to charge higher prices and Brinkerhoff validates this strategy by holding a reputation of providing good work, having an excellent safety record and low maintenance costs. Brinkerhoff will only be able to sustain these advantages if they work to improve their employee’s performance and satisfaction, part of which will depend on improving motivation.

Solution: Recruit and implement the use of motivation theories in every rig

The solution to this motivation dilemma requires the use of motivation theories both traditional and contemporary that incorporate some form of job enrichment and variable based pay programs. We recommend that Brinkerhoff consider implementing their own unique mix of motivation techniques that can be developed by using the features of the following theories and concepts that will have the biggest impact on their employee’s performance and job satisfaction.

1. The Equity Theory

a. Employees