Case Study
Deadline: 20/11/2021 @ 23:59
Course Name: Principles of Management
Student’s Name:
Course Code: MGT101
Student’s ID Number:
Semester: 1st
CRN:
Academic Year: 1442/1443 H, 1st Term
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: /5
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
This assignment is an individual assignment.
Due date for Assignment 2 is by the end of Week 11.(20/11/2020)
The Assignment must be submitted only in WORD format via allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Assignment Purposes/Learning Outcomes:
After completion of Assignment-2 students will able to understand the
1. Examine management issues and practices in motivation; organizational culture, structure, and behavior; team dynamics; and communication.
2. Relate motivational theories to motivating and demotivating factors.
3. Know and discuss manager’s role in motivating employees.
Assignment-2
Case Study
In September 2018, Mohammed Salim joined KAAF Software Solutions (KAFF) as a Senior Programmer, with a handsome pay. Prior to this job, he worked successfully as an Assistant Programmer in Gant Computers (Gant). Salim felt that working for KAFF, there are better career prospects, as it was growing much faster than Gant, which was a relatively small company.
Although Salim had enjoyed working there (at Gant), he realized that to grow further in his field, he would have to join a bigger company, and preferable one that handled international projects. He was sure he would excel in his position at KAFF, just as he had done in his old job at Gant.
KAFF had international operations and there was more than a slim chance that he would be sent to USA or the UK on a project. Knowing that this would give him a lot of exposure, besides looking good on his resume, Salim was quite excited about his new job.
Salim joined Mrs. Zeenat’s five-member team at KAFF. He had met Mrs. Zeenat during the orientation sessions, and was looking forward to working under her. His team members seemed warm and friendly, and comfortable with their work. He introduced himself to the team members and got to know more about each of them.
Wanting to know more about his boss, he casually asked one of the team members, about Mrs Zeenat. He was told that Mrs. Zeenat does not interfere with our work. Salim was surprised to know this and thought that probably Mrs. Zeenat was leaving them alone to do their work without any guidance, in order to allow them to realize their full potential.
At Gant, Salim had worked under Abdulrahman and had looked up to him as a guide and mentor – always guiding, but never interfering. Abdulrahman had let Salim make his own mistakes and learn from them. He had always encouraged individual ideas, and let the team discover the flaws, if any, through discussion and experience. He rarely held an individual member of his team responsible if the team as a whole failed to deliver – for him the responsibility for any failure was collective. Salim remembered telling his colleagues at Gant that the ideal boss would be someone who did not interfere with his/her subordinate’s work. Salim wanted to believe that Mrs. Zeenat too was the non-interfering type. If that was the case, surely her non-interference would only help him to grow.
In his first week at work, Salim found the atmosphere at the office a bit dull. However, he was quite excited. His team had been assigned a new project and was facing a few glitches with the new software. He had thought about the problem till late in the night and had come up with several possible solutions. He could not wait to discuss them with his team and Mrs. Zeenat. He smiled to himself when he thought of how Mrs. Zeenat would react when he will tell her that he had come up with several possible solutions to the problem. He was sure she would be happy with his having put in so much effort into the project, right from day one.
He was daydreaming about all the praise that he was going to get when Mrs. Zeenat walked into the office. Salim waited for her to go into her cabin, and after five minutes, called her up, asking to see her. She asked him to come in after tem minutes. When he went in, she looked at him blankly and asked, “Yes?” Not sure whether she had recognized him, Salim introduced himself. She said, “Ok, but why did you want to meet me?” He started to tell her about the problems they were having with the software. But before he could even finish, she told him that she was busy with other things, and that she would send an email with the solution to all the members of the team by the end of the day, and that they could then implement it immediately. Salim was somewhat taken aback. However, ever the optimist, he thought that she had perhaps already discussed the matter with the team.
Salim came out of Mrs. Zeenat’s cabin and went straight to where his team members sat. He thought it would still be nice to bounce ideas off them and also to see what solutions others might come up with. He told them of all the solutions he had in mind. He waited for the others to come up with their suggestions but not one of them spoke up. He was surprised, and asked them point-blank why they were so disinterested.
Faisal, one of the team members, said, “What is the point in our discussing these things? Mrs. Zeenat is not going to have time to listen to us on discuss anything. She will just give us the solution she thinks is best, and we will just do what she tells us to do; why waste everyone’s time?”
Salim felt his heart sink. Was this the way things worked over here? However, he refused to lose heart and thought that maybe, he could change things a little. But as the days went by, Salim realized that Mrs. Zeenat was the complete opposite of his old boss.
While she was efficient at what she did and extremely intelligent, she had neither the time nor the inclination to groom her subordinates. Her solutions to problem were always correct, but she was not willing to discuss or debate the merits of any other ideas that her team might have. She did not hold the team down to their deadlines not did she ever interfere. In fact, she rarely said anything at all. If work did not get finished on time, she would just blame her team, and totally disassociate herself from them.
Time and again, Salim found himself thinking of Abdulrahman his old boss, and of how he had been such a positive influence. Mrs. Zeenat, on the other hand, even without actively doing anything, had managed to significantly lower his motivation levels.
Salim gradually began to lose interest in his work – it had become too mechanical for his taste. He didn’t really need to think; his boss had all the answers. He was learning nothing new, and he felt his career was going nowhere. As he became more and more discouraged, his performance suffered. From being someone with immense promise and potential Salim was now in danger of becoming just another mediocre techie.
Questions:
Q1. What, according to you, were the reasons for Salim’s disillusionment? Answer the question using Maslow’s Hierarchy of Needs. (2.5 marks)
Q2. What should Salim do to resolve his situation? (1.25 marks)
Q3. What should a team leader do, to ensure high levels of motivation among his/her team members? (1.25 Marks)
Page 1 of 4
Assignment 2 MGT101 (1st Term 2021-2022) Case Study Deadline: 20/11/2021 @ 23:59
Assignment 2 MGT101 (1st Term 2021-2022)
Case Study
Deadline: 20/11/2021 @ 23:59
Course Name: Principles of Management
Student’s Name:
Course Code: MGT101
Student’s ID Number:
Semester: 1st
CRN:
Academic Year: 1442/1443 H, 1st Term
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: /5
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
This assignment is an individual assignment.
Due date for Assignment 2 is by the end of Week 11.(20/11/2020)
The Assignment must be submitted only in WORD format via allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Assignment Purposes/Learning Outcomes:
After completion of Assignment-2 students will able to understand the
1. Examine management issues and practices in motivation; organizational culture, structure, and behavior; team dynamics; and communication.
2. Relate motivational theories to motivating and demotivating factors.
3. Know and discuss manager’s role in motivating employees.
Assignment-2
Case Study
In September 2018, Mohammed Salim joined KAAF Software Solutions (KAFF) as a Senior Programmer, with a handsome pay. Prior to this job, he worked successfully as an Assistant Programmer in Gant Computers (Gant). Salim felt that working for KAFF, there are better career prospects, as it was growing much faster than Gant, which was a relatively small company.
Although Salim had enjoyed working there (at Gant), he realized that to grow further in his field, he would have to join a bigger company, and preferable one that handled international projects. He was sure he would excel in his position at KAFF, just as he had done in his old job at Gant.
KAFF had international operations and there was more than a slim chance that he would be sent to USA or the UK on a project. Knowing that this would give him a lot of exposure, besides looking good on his resume, Salim was quite excited about his new job.
Salim joined Mrs. Zeenat’s five-member team at KAFF. He had met Mrs. Zeenat during the orientation sessions, and was looking forward to working under her. His team members seemed warm and friendly, and comfortable with their work. He introduced himself to the team members and got to know more about each of them.
Wanting to know more about his boss, he casually asked one of the team members, about Mrs Zeenat. He was told that Mrs. Zeenat does not interfere with our work. Salim was surprised to know this and thought that probably Mrs. Zeenat was leaving them alone to do their work without any guidance, in order to allow them to realize their full potential.
At Gant, Salim had worked under Abdulrahman and had looked up to him as a guide and mentor – always guiding, but never interfering. Abdulrahman had let Salim make his own mistakes and learn from them. He had always encouraged individual ideas, and let the team discover the flaws, if any, through discussion and experience. He rarely held an individual member of his team responsible if the team as a whole failed to deliver – for him the responsibility for any failure was collective. Salim remembered telling his colleagues at Gant that the ideal boss would be someone who did not interfere with his/her subordinate’s work. Salim wanted to believe that Mrs. Zeenat too was the non-interfering type. If that was the case, surely her non-interference would only help him to grow.
In his first week at work, Salim found the atmosphere at the office a bit dull. However, he was quite excited. His team had been assigned a new project and was facing a few glitches with the new software. He had thought about the problem till late in the night and had come up with several possible solutions. He could not wait to discuss them with his team and Mrs. Zeenat. He smiled to himself when he thought of how Mrs. Zeenat would react when he will tell her that he had come up with several possible solutions to the problem. He was sure she would be happy with his having put in so much effort into the project, right from day one.
He was daydreaming about all the praise that he was going to get when Mrs. Zeenat walked into the office. Salim waited for her to go into her cabin, and after five minutes, called her up, asking to see her. She asked him to come in after tem minutes. When he went in, she looked at him blankly and asked, “Yes?” Not sure whether she had recognized him, Salim introduced himself. She said, “Ok, but why did you want to meet me?” He started to tell her about the problems they were having with the software. But before he could even finish, she told him that she was busy with other things, and that she would send an email with the solution to all the members of the team by the end of the day, and that they could then implement it immediately. Salim was somewhat taken aback. However, ever the optimist, he thought that she had perhaps already discussed the matter with the team.
Salim came out of Mrs. Zeenat’s cabin and went straight to where his team members sat. He thought it would still be nice to bounce ideas off them and also to see what solutions others might come up with. He told them of all the solutions he had in mind. He waited for the others to come up with their suggestions but not one of them spoke up. He was surprised, and asked them point-blank why they were so disinterested.
Faisal, one of the team members, said, “What is the point in our discussing these things? Mrs. Zeenat is not going to have time to listen to us on discuss anything. She will just give us the solution she thinks is best, and we will just do what she tells us to do; why waste everyone’s time?”
Salim felt his heart sink. Was this the way things worked over here? However, he refused to lose heart and thought that maybe, he could change things a little. But as the days went by, Salim realized that Mrs. Zeenat was the complete opposite of his old boss.
While she was efficient at what she did and extremely intelligent, she had neither the time nor the inclination to groom her subordinates. Her solutions to problem were always correct, but she was not willing to discuss or debate the merits of any other ideas that her team might have. She did not hold the team down to their deadlines not did she ever interfere. In fact, she rarely said anything at all. If work did not get finished on time, she would just blame her team, and totally disassociate herself from them.
Time and again, Salim found himself thinking of Abdulrahman his old boss, and of how he had been such a positive influence. Mrs. Zeenat, on the other hand, even without actively doing anything, had managed to significantly lower his motivation levels.
Salim gradually began to lose interest in his work – it had become too mechanical for his taste. He didn’t really need to think; his boss had all the answers. He was learning nothing new, and he felt his career was going nowhere. As he became more and more discouraged, his performance suffered. From being someone with immense promise and potential Salim was now in danger of becoming just another mediocre techie.
Questions:
Q1. What, according to you, were the reasons for Salim’s disillusionment? Answer the question using Maslow’s Hierarchy of Needs. (2.5 marks)
Q2. What should Salim do to resolve his situation? (1.25 marks)
Q3. What should a team leader do, to ensure high levels of motivation among his/her team members? (1.25 Marks)
Page 1 of 4
Assignment 2 MGT101 (1st Term 2021-2022) Case Study Deadline: 20/11/2021 @ 23:59
Assignment 2 MGT101 (1st Term 2021-2022)
Case Study
Deadline: 20/11/2021 @ 23:59
Course Name: Principles of Management
Student’s Name:
Course Code: MGT101
Student’s ID Number:
Semester: 1st
CRN:
Academic Year: 1442/1443 H, 1st Term
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: /5
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
This assignment is an individual assignment.
Due date for Assignment 2 is by the end of Week 11.(20/11/2020)
The Assignment must be submitted only in WORD format via allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Assignment Purposes/Learning Outcomes:
After completion of Assignment-2 students will able to understand the
1. Examine management issues and practices in motivation; organizational culture, structure, and behavior; team dynamics; and communication.
2. Relate motivational theories to motivating and demotivating factors.
3. Know and discuss manager’s role in motivating employees.
Assignment-2
Case Study
In September 2018, Mohammed Salim joined KAAF Software Solutions (KAFF) as a Senior Programmer, with a handsome pay. Prior to this job, he worked successfully as an Assistant Programmer in Gant Computers (Gant). Salim felt that working for KAFF, there are better career prospects, as it was growing much faster than Gant, which was a relatively small company.
Although Salim had enjoyed working there (at Gant), he realized that to grow further in his field, he would have to join a bigger company, and preferable one that handled international projects. He was sure he would excel in his position at KAFF, just as he had done in his old job at Gant.
KAFF had international operations and there was more than a slim chance that he would be sent to USA or the UK on a project. Knowing that this would give him a lot of exposure, besides looking good on his resume, Salim was quite excited about his new job.
Salim joined Mrs. Zeenat’s five-member team at KAFF. He had met Mrs. Zeenat during the orientation sessions, and was looking forward to working under her. His team members seemed warm and friendly, and comfortable with their work. He introduced himself to the team members and got to know more about each of them.
Wanting to know more about his boss, he casually asked one of the team members, about Mrs Zeenat. He was told that Mrs. Zeenat does not interfere with our work. Salim was surprised to know this and thought that probably Mrs. Zeenat was leaving them alone to do their work without any guidance, in order to allow them to realize their full potential.
At Gant, Salim had worked under Abdulrahman and had looked up to him as a guide and mentor – always guiding, but never interfering. Abdulrahman had let Salim make his own mistakes and learn from them. He had always encouraged individual ideas, and let the team discover the flaws, if any, through discussion and experience. He rarely held an individual member of his team responsible if the team as a whole failed to deliver – for him the responsibility for any failure was collective. Salim remembered telling his colleagues at Gant that the ideal boss would be someone who did not interfere with his/her subordinate’s work. Salim wanted to believe that Mrs. Zeenat too was the non-interfering type. If that was the case, surely her non-interference would only help him to grow.
In his first week at work, Salim found the atmosphere at the office a bit dull. However, he was quite excited. His team had been assigned a new project and was facing a few glitches with the new software. He had thought about the problem till late in the night and had come up with several possible solutions. He could not wait to discuss them with his team and Mrs. Zeenat. He smiled to himself when he thought of how Mrs. Zeenat would react when he will tell her that he had come up with several possible solutions to the problem. He was sure she would be happy with his having put in so much effort into the project, right from day one.
He was daydreaming about all the praise that he was going to get when Mrs. Zeenat walked into the office. Salim waited for her to go into her cabin, and after five minutes, called her up, asking to see her. She asked him to come in after tem minutes. When he went in, she looked at him blankly and asked, “Yes?” Not sure whether she had recognized him, Salim introduced himself. She said, “Ok, but why did you want to meet me?” He started to tell her about the problems they were having with the software. But before he could even finish, she told him that she was busy with other things, and that she would send an email with the solution to all the members of the team by the end of the day, and that they could then implement it immediately. Salim was somewhat taken aback. However, ever the optimist, he thought that she had perhaps already discussed the matter with the team.
Salim came out of Mrs. Zeenat’s cabin and went straight to where his team members sat. He thought it would still be nice to bounce ideas off them and also to see what solutions others might come up with. He told them of all the solutions he had in mind. He waited for the others to come up with their suggestions but not one of them spoke up. He was surprised, and asked them point-blank why they were so disinterested.
Faisal, one of the team members, said, “What is the point in our discussing these things? Mrs. Zeenat is not going to have time to listen to us on discuss anything. She will just give us the solution she thinks is best, and we will just do what she tells us to do; why waste everyone’s time?”
Salim felt his heart sink. Was this the way things worked over here? However, he refused to lose heart and thought that maybe, he could change things a little. But as the days went by, Salim realized that Mrs. Zeenat was the complete opposite of his old boss.
While she was efficient at what she did and extremely intelligent, she had neither the time nor the inclination to groom her subordinates. Her solutions to problem were always correct, but she was not willing to discuss or debate the merits of any other ideas that her team might have. She did not hold the team down to their deadlines not did she ever interfere. In fact, she rarely said anything at all. If work did not get finished on time, she would just blame her team, and totally disassociate herself from them.
Time and again, Salim found himself thinking of Abdulrahman his old boss, and of how he had been such a positive influence. Mrs. Zeenat, on the other hand, even without actively doing anything, had managed to significantly lower his motivation levels.
Salim gradually began to lose interest in his work – it had become too mechanical for his taste. He didn’t really need to think; his boss had all the answers. He was learning nothing new, and he felt his career was going nowhere. As he became more and more discouraged, his performance suffered. From being someone with immense promise and potential Salim was now in danger of becoming just another mediocre techie.
Questions:
Q1. What, according to you, were the reasons for Salim’s disillusionment? Answer the question using Maslow’s Hierarchy of Needs. (2.5 marks)
Q2. What should Salim do to resolve his situation? (1.25 marks)
Q3. What should a team leader do, to ensure high levels of motivation among his/her team members? (1.25 Marks)
Page 1 of 4
Assignment 2 MGT101 (1st Term 2021-2022) Case Study Deadline: 20/11/2021 @ 23:59
Writing Assignment Help Assignment 2 MGT101 (1st Term 2021-2022)
Case Study
Deadline: 20/11/2021 @ 23:59
Course Name: Principles of Management
Student’s Name:
Course Code: MGT101
Student’s ID Number:
Semester: 1st
CRN:
Academic Year: 1442/1443 H, 1st Term
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: /5
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
This assignment is an individual assignment.
Due date for Assignment 2 is by the end of Week 11.(20/11/2020)
The Assignment must be submitted only in WORD format via allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Assignment Purposes/Learning Outcomes:
After completion of Assignment-2 students will able to understand the
1. Examine management issues and practices in motivation; organizational culture, structure, and behavior; team dynamics; and communication.
2. Relate motivational theories to motivating and demotivating factors.
3. Know and discuss manager’s role in motivating employees.
Assignment-2
Case Study
In September 2018, Mohammed Salim joined KAAF Software Solutions (KAFF) as a Senior Programmer, with a handsome pay. Prior to this job, he worked successfully as an Assistant Programmer in Gant Computers (Gant). Salim felt that working for KAFF, there are better career prospects, as it was growing much faster than Gant, which was a relatively small company.
Although Salim had enjoyed working there (at Gant), he realized that to grow further in his field, he would have to join a bigger company, and preferable one that handled international projects. He was sure he would excel in his position at KAFF, just as he had done in his old job at Gant.
KAFF had international operations and there was more than a slim chance that he would be sent to USA or the UK on a project. Knowing that this would give him a lot of exposure, besides looking good on his resume, Salim was quite excited about his new job.
Salim joined Mrs. Zeenat’s five-member team at KAFF. He had met Mrs. Zeenat during the orientation sessions, and was looking forward to working under her. His team members seemed warm and friendly, and comfortable with their work. He introduced himself to the team members and got to know more about each of them.
Wanting to know more about his boss, he casually asked one of the team members, about Mrs Zeenat. He was told that Mrs. Zeenat does not interfere with our work. Salim was surprised to know this and thought that probably Mrs. Zeenat was leaving them alone to do their work without any guidance, in order to allow them to realize their full potential.
At Gant, Salim had worked under Abdulrahman and had looked up to him as a guide and mentor – always guiding, but never interfering. Abdulrahman had let Salim make his own mistakes and learn from them. He had always encouraged individual ideas, and let the team discover the flaws, if any, through discussion and experience. He rarely held an individual member of his team responsible if the team as a whole failed to deliver – for him the responsibility for any failure was collective. Salim remembered telling his colleagues at Gant that the ideal boss would be someone who did not interfere with his/her subordinate’s work. Salim wanted to believe that Mrs. Zeenat too was the non-interfering type. If that was the case, surely her non-interference would only help him to grow.
In his first week at work, Salim found the atmosphere at the office a bit dull. However, he was quite excited. His team had been assigned a new project and was facing a few glitches with the new software. He had thought about the problem till late in the night and had come up with several possible solutions. He could not wait to discuss them with his team and Mrs. Zeenat. He smiled to himself when he thought of how Mrs. Zeenat would react when he will tell her that he had come up with several possible solutions to the problem. He was sure she would be happy with his having put in so much effort into the project, right from day one.
He was daydreaming about all the praise that he was going to get when Mrs. Zeenat walked into the office. Salim waited for her to go into her cabin, and after five minutes, called her up, asking to see her. She asked him to come in after tem minutes. When he went in, she looked at him blankly and asked, “Yes?” Not sure whether she had recognized him, Salim introduced himself. She said, “Ok, but why did you want to meet me?” He started to tell her about the problems they were having with the software. But before he could even finish, she told him that she was busy with other things, and that she would send an email with the solution to all the members of the team by the end of the day, and that they could then implement it immediately. Salim was somewhat taken aback. However, ever the optimist, he thought that she had perhaps already discussed the matter with the team.
Salim came out of Mrs. Zeenat’s cabin and went straight to where his team members sat. He thought it would still be nice to bounce ideas off them and also to see what solutions others might come up with. He told them of all the solutions he had in mind. He waited for the others to come up with their suggestions but not one of them spoke up. He was surprised, and asked them point-blank why they were so disinterested.
Faisal, one of the team members, said, “What is the point in our discussing these things? Mrs. Zeenat is not going to have time to listen to us on discuss anything. She will just give us the solution she thinks is best, and we will just do what she tells us to do; why waste everyone’s time?”
Salim felt his heart sink. Was this the way things worked over here? However, he refused to lose heart and thought that maybe, he could change things a little. But as the days went by, Salim realized that Mrs. Zeenat was the complete opposite of his old boss.
While she was efficient at what she did and extremely intelligent, she had neither the time nor the inclination to groom her subordinates. Her solutions to problem were always correct, but she was not willing to discuss or debate the merits of any other ideas that her team might have. She did not hold the team down to their deadlines not did she ever interfere. In fact, she rarely said anything at all. If work did not get finished on time, she would just blame her team, and totally disassociate herself from them.
Time and again, Salim found himself thinking of Abdulrahman his old boss, and of how he had been such a positive influence. Mrs. Zeenat, on the other hand, even without actively doing anything, had managed to significantly lower his motivation levels.
Salim gradually began to lose interest in his work – it had become too mechanical for his taste. He didn’t really need to think; his boss had all the answers. He was learning nothing new, and he felt his career was going nowhere. As he became more and more discouraged, his performance suffered. From being someone with immense promise and potential Salim was now in danger of becoming just another mediocre techie.
Questions:
Q1. What, according to you, were the reasons for Salim’s disillusionment? Answer the question using Maslow’s Hierarchy of Needs. (2.5 marks)
Q2. What should Salim do to resolve his situation? (1.25 marks)
Q3. What should a team leader do, to ensure high levels of motivation among his/her team members? (1.25 Marks)
Assignment 2 MGT101 (1st Term 2021-2022) Case Study Deadline: 20/11/2021 @ 23:59
Assignment 2 MGT101 (1st Term 2021-2022)
Case Study
Deadline: 20/11/2021 @ 23:59
Course Name: Principles of Management
Student’s Name:
Course Code: MGT101
Student’s ID Number:
Semester: 1st
CRN:
Academic Year: 1442/1443 H, 1st Term
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: /5
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
This assignment is an individual assignment.
Due date for Assignment 2 is by the end of Week 11.(20/11/2020)
The Assignment must be submitted only in WORD format via allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Assignment Purposes/Learning Outcomes:
After completion of Assignment-2 students will able to understand the
1. Examine management issues and practices in motivation; organizational culture, structure, and behavior; team dynamics; and communication.
2. Relate motivational theories to motivating and demotivating factors.
3. Know and discuss manager’s role in motivating employees.
Assignment-2
Case Study
In September 2018, Mohammed Salim joined KAAF Software Solutions (KAFF) as a Senior Programmer, with a handsome pay. Prior to this job, he worked successfully as an Assistant Programmer in Gant Computers (Gant). Salim felt that working for KAFF, there are better career prospects, as it was growing much faster than Gant, which was a relatively small company.
Although Salim had enjoyed working there (at Gant), he realized that to grow further in his field, he would have to join a bigger company, and preferable one that handled international projects. He was sure he would excel in his position at KAFF, just as he had done in his old job at Gant.
KAFF had international operations and there was more than a slim chance that he would be sent to USA or the UK on a project. Knowing that this would give him a lot of exposure, besides looking good on his resume, Salim was quite excited about his new job.
Salim joined Mrs. Zeenat’s five-member team at KAFF. He had met Mrs. Zeenat during the orientation sessions, and was looking forward to working under her. His team members seemed warm and friendly, and comfortable with their work. He introduced himself to the team members and got to know more about each of them.
Wanting to know more about his boss, he casually asked one of the team members, about Mrs Zeenat. He was told that Mrs. Zeenat does not interfere with our work. Salim was surprised to know this and thought that probably Mrs. Zeenat was leaving them alone to do their work without any guidance, in order to allow them to realize their full potential.
At Gant, Salim had worked under Abdulrahman and had looked up to him as a guide and mentor – always guiding, but never interfering. Abdulrahman had let Salim make his own mistakes and learn from them. He had always encouraged individual ideas, and let the team discover the flaws, if any, through discussion and experience. He rarely held an individual member of his team responsible if the team as a whole failed to deliver – for him the responsibility for any failure was collective. Salim remembered telling his colleagues at Gant that the ideal boss would be someone who did not interfere with his/her subordinate’s work. Salim wanted to believe that Mrs. Zeenat too was the non-interfering type. If that was the case, surely her non-interference would only help him to grow.
In his first week at work, Salim found the atmosphere at the office a bit dull. However, he was quite excited. His team had been assigned a new project and was facing a few glitches with the new software. He had thought about the problem till late in the night and had come up with several possible solutions. He could not wait to discuss them with his team and Mrs. Zeenat. He smiled to himself when he thought of how Mrs. Zeenat would react when he will tell her that he had come up with several possible solutions to the problem. He was sure she would be happy with his having put in so much effort into the project, right from day one.
He was daydreaming about all the praise that he was going to get when Mrs. Zeenat walked into the office. Salim waited for her to go into her cabin, and after five minutes, called her up, asking to see her. She asked him to come in after tem minutes. When he went in, she looked at him blankly and asked, “Yes?” Not sure whether she had recognized him, Salim introduced himself. She said, “Ok, but why did you want to meet me?” He started to tell her about the problems they were having with the software. But before he could even finish, she told him that she was busy with other things, and that she would send an email with the solution to all the members of the team by the end of the day, and that they could then implement it immediately. Salim was somewhat taken aback. However, ever the optimist, he thought that she had perhaps already discussed the matter with the team.
Salim came out of Mrs. Zeenat’s cabin and went straight to where his team members sat. He thought it would still be nice to bounce ideas off them and also to see what solutions others might come up with. He told them of all the solutions he had in mind. He waited for the others to come up with their suggestions but not one of them spoke up. He was surprised, and asked them point-blank why they were so disinterested.
Faisal, one of the team members, said, “What is the point in our discussing these things? Mrs. Zeenat is not going to have time to listen to us on discuss anything. She will just give us the solution she thinks is best, and we will just do what she tells us to do; why waste everyone’s time?”
Salim felt his heart sink. Was this the way things worked over here? However, he refused to lose heart and thought that maybe, he could change things a little. But as the days went by, Salim realized that Mrs. Zeenat was the complete opposite of his old boss.
While she was efficient at what she did and extremely intelligent, she had neither the time nor the inclination to groom her subordinates. Her solutions to problem were always correct, but she was not willing to discuss or debate the merits of any other ideas that her team might have. She did not hold the team down to their deadlines not did she ever interfere. In fact, she rarely said anything at all. If work did not get finished on time, she would just blame her team, and totally disassociate herself from them.
Time and again, Salim found himself thinking of Abdulrahman his old boss, and of how he had been such a positive influence. Mrs. Zeenat, on the other hand, even without actively doing anything, had managed to significantly lower his motivation levels.
Salim gradually began to lose interest in his work – it had become too mechanical for his taste. He didn’t really need to think; his boss had all the answers. He was learning nothing new, and he felt his career was going nowhere. As he became more and more discouraged, his performance suffered. From being someone with immense promise and potential Salim was now in danger of becoming just another mediocre techie.
Questions:
Q1. What, according to you, were the reasons for Salim’s disillusionment? Answer the question using Maslow’s Hierarchy of Needs. (2.5 marks)
Q2. What should Salim do to resolve his situation? (1.25 marks)
Q3. What should a team leader do, to ensure high levels of motivation among his/her team members? (1.25 Marks)
Page 1 of 4
Teradyne On August 2nd, 2001, Teradyne, Inc. (NYSE: TER) of Westford, Massachusetts
Teradyne
On August 2nd, 2001, Teradyne, Inc. (NYSE: TER) of Westford, Massachusetts announced that it would be acquiring GenRad, Inc. (NYSE: GEN), a leading manufacturer of automatic test equipment and related software. Under the terms of the definitive agreement, each share of GenRad stock would be converted into .1733 shares of Teradyne stock. At the close of the New York Stock Exchange on August 1st, Teradyne stock was valued at $35.10 effectively valuing the acquisition at roughly $260 million including an assumption of $85 million in debt. Teradyne believed that the acquisition would initially be dilutive, but expected through synergies and an increase in demand, would become accretive in 2002. Scheduled to close in the fourth quarter of 2001, the acquisition was dependant on GenRad shareholder and government regulator approval.
By September 2001, the economic condition of the United States had deteriorated. Accelerated by the terrorist attack on New York’s World Trade Center Towers, American consumers further withdrew from traditional spending habits. During the month, Teradyne announced an unexpected third quarter loss of approximately $.32 per share. Previous analyst loss estimates were approximately $.11 per share. Amidst the economic turmoil and financial performance, the company began to eliminate 1,000 employees and reduced salaries of up to 15% for higher paid employees.
Under the circumstances, the acquisition of GenRad may be in question. The board had to decide whether or not this was the right time to undertake such a complex integration and if the economy would recover in time to have the transaction contribute to earnings on schedule.
On the last trading day in September, Teradyne’s stock closed at $19.50 and GenRad finished the month closing at $3.27 per share.
Teradyne
Corporate Background
Teradyne manufactures automatic test equipment and related software for the electronics and communications industries. The company also is a leading manufacturer of connection systems used in the testing of electronic systems.
In December 2000, the company sold a controlling interest in its software testing business to an investor group. Teradyne remains a minority shareholder in the new company under the name Empirix.
The products designed and sold by Teradyne are used in the design and testing of a large number of semiconductor products including logic, memory, mixed signal, and integrated circuits.
Electronic manufacturers who assist in the design, inspection, and testing of circuit boards and other electronic assemblies primarily use the company’s circuit board test and inspection systems. Similar to semiconductor test systems, the circuit board test systems improve electronic product performance, increase product quality, shorten a manufacturers time to market, assist in manufacturing, minimize labor costs, and increase production yields.
The company also manufacturers broadband test systems used by the communications industry for Internet testing, customer service, and voice network maintenance.
Most of the company’s test systems are complex and require support both from the customer as well as Teradyne. Pricing for these systems can reach $4 million or above. As of the year ending December 2000, no single customer accounted for more than 10% of the company’s net revenue. The largest three customers accounted for 21% of revenue in 2000.
The distribution and sales of Teradyne’s products are conducted both inside and outside the United States. While the company has sales offices throughout North America, it also maintains sales and service offices throughout South East Asia, Europe, Taiwan, Japan, and Korea. Almost all of the company’s manufacturing is done in the United States, but a majority of the revenue comes from outside the U.S. International sales accounted for 54% of total revenue in 2000, 52% in 1999, and 46% in 1998. Risk associated with international business tend to be country or region based and include political and economic instability, unfavorable trade policy, fund transfer problems, currency fluctuations, distribution, tax rates, and the ability to collect accounts receivable funds.
Teradyne has never paid a cash dividend and has maintained a policy to use earnings to finance expansion and growth.
Competition
Teradyne participates in a highly competitive environment that covers all of its business segments. Competitors are constantly improving products that may or may not be an improvement over Teradyne’s products. It is therefore essential that the company continue to invest heavily in itself to further improve and create new products for the marketplace.
Employees & Corporate Headquarters
As of December 2000, Teradyne employed approximately 10,200 persons. The company has never experienced any labor problems and does not have any employees that are members of a collective bargaining group.
Research and Development
For Teradyne to continue to compete in the marketplace, it needs to invest in both new product development and the improvement of its existing product base. In 2000, the company invested $300.9 million for new and existing products. Expenditures for research and development in 1999 and 1998 were approximately $228.6 million and $195.2 million. Research and development accounted for approximately 10% of total net revenue in 2000, 13% in 1999, and 13% in 1998.
Regulatory Issues
While the company has not experienced any significant costs associated with its compliance with numerous regulations designed to protect the environment, it cannot predict the future expenditures associated with regulatory compliance. Some of the environmental laws that impact the business include The Comprehensive Environmental Response, Compensation, and Liability Act, The Superfund Amendment and Reauthorization Act of 1986, The Occupational Safety and Health Act, The Clean Air Act, The Clean Water Act, The Resource Conservation and Recovery Act of 1976, and The Hazardous and Solid Waste Amendments of 1984.
GenRad
Corporate Background
GenRad, Inc. provides electronic manufacturing productivity solutions for contract and original equipment manufacturers of wireless and handheld devices, personal computers, business servers, DSL and other broadband switching and routing technologies, and other equipment devices used for the Internet and electronic commerce. While primarily located in the United States, GenRad also maintains facilities in Western Europe and Southeast Asia.
GenRad is organized into three business lines, each supported through its support and services division:
Process Solutions
The Process Solutions is based in Westford, Massachusetts and is comprised of seven lines of products primarily focusing on in-circuit test, x-ray test, and re-work solutions for electronic manufacturers. Products under this division range in price from $25,000 to $1,000,000.
Functional Solutions
Based in Westford, Massachusetts, the Functional Solutions division sells and markets functional test platforms for manufacturers of telecommunications, computers, and automobile electronics. Systems under this division typically sell for as little as $100,000 with a ceiling of approximately $500,000.
Diagnostic Solutions
GenRad, through its Manchester, UK facilities, provides customers with a wide array of diagnostic and information solutions tying design, manufacturing, and service into a single vision. This division accomplishes this goal through the its software and hardware solutions for the automotive and transportation customers, as well as other independent service providers.
Support and Services
Through its Support and Services Division, GenRad provides customers with on-site and remote support, maintenance programs, and programming and training to enable customers to optimize their GenRad hardware and software products.
Competition
GenRad participates in an intensely competitive industry. Competition from both domestic and foreign corporations exists across all business segments. Some of the competing companies are substantially larger than GenRad and have easier access to resources. Some of the company’s principal competitors are Agilent Technologies, Teradyne Corporation, Siemans A.G., and Bosch. GenRad, in order to overcome its competition, targets customers’ specific needs and carves out a niche rather than competes on a large, broad basis. The primary competitive factors are product performance, customer applications, engineering, customer support and service, and pricing. For GenRad to continue to compete in each of its product segments, research and development will play an ongoing critical component of the company’s strategy.
GenRad sells and supports its products primarily through an in-house sales and service team. Currently the company maintains sales offices in the United States, Mexico, the United Kingdom, Germany, France, Switzerland, Italy, Sweden, the Netherlands, Singapore, and Malaysia. The company will also contract with independent companies throughout the world to provide sales and service support in areas not directly covered by GenRad’s sales and support teams.
Employees & Corporate Headquarters
As of December 2000, GenRad employed 1,524 total employees including contracted employees. As a comparison, in the prior year, the company had 1,296 total employees. As of December 2000, no employee was a member of a collective bargaining agreement.
Customer Base
GenRad primarily targets and delivers products and services to original equipment manufacturers of electronics, electronic components and peripherals, contract electronics manufacturers, and transportation and automotive companies. While these industries make up the largest share of the company’s sales, other smaller manufacturers are also focused on for future sales.
One of GenRad’s primary customers is Ford Motor Company providing the automotive manufacturer with diagnostic equipment to assist Ford’s dealers with the problem testing of electrical systems in Ford vehicles. At year-end December 2000, Ford accounted for approximately 22% of consolidated accounts receivable. For the years ending 1998, 1999, and 2000, the Ford business accounted for approximately 11%, 31%, and 20% of consolidated revenues.
Research and Development
One of the keys to GenRad’s continued success is the development of new products and the improvement of existing products on the market. Most expenditures in research and development are primarily associated with the hiring of staff and the improvements in software and hardware in all of the company’s product segments. In 2000, the company spent approximately $29.0 million in research and development. Expenditures in 1999 and 1998 were $20.0 million and $19.0 million.
Expansion through Acquisition
GenRad had expanded through the years, utilizing both same store growth and acquisition. In April 2000, the company purchased Autodiagnos AB, an automotive aftermarket diagnostic software and equipment vender based in Stockholm, Sweden with offices in England, the Netherlands, Germany, and the United States. For substantially all of the outstanding stock, GenRad paid $26.7 million in cash and included the assumption of $6.0 million in debt. Legal and accounting expenditures for the transaction totaled $1.3 million.
Earlier in March 2000, the company acquired the assets of Nicolet Imaging Systems and the outstanding stock of Sierra Research Technology located in California and Massachusetts for approximately $40 million in cash. The transaction enabled the company to expand its x-ray inspection technologies and its repair/re-work equipment business.
In April 1998, GenRad purchased certain assets of the Manufacturing Execution Systems business of Valstar Systems Limited of Aberdeen, Scotland for $3.2 million in cash including approximately $0.2 million in acquisition costs.
Conclusion
With the stock market correction and the uncertainty of the immediate future of the United States and global economy, an acquisition of GenRad at this time may not seem appropriate. However, it may prove the key time to invest as interest rates continue to fall and stock prices remain suppressed. With the close looming in the near future, management had to decide on the fate of the deal before it was legally obligated to go through with the transaction.
Exhibit 1
GenRad, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 30,2000, JANUARY1, 2000 AND JANUARY 2, 1999
(in thousands, except per share amounts)
2000
1999
1998
Revenue:
$
$
$
Products
275,480
232,362
159,290
Services
66,175
69,586
65,499
Total Revenue
341,655
301,948
224,789
Cost of revenue:
Products
157,257
124,114
80,112
Services
46,694
42,643
38,775
Total Cost of Revenue
203,951
166,757
118,877
Gross margin
137,704
135,191
105,912
Operating Expenses:
Selling, general and admin
80,723
63,216
67,890
Research and development
28,956
20,042
18,962
amortization of acquisition-related intangible assets
7,269
2,831
1,948
Acquired in-process research and development
500
10,097
Restructuring and other charges
1,291
8,753
Loss from impairment of intangible assets
4,906
Arbitration settlement
7,650
Total operating Expenses
118,739
86,089
120,206
Operating income (loss)
18,965
49,102
-14,294
Other income(expense)
Interest income
196
212
399
Interest expense
-8,216
-1,374
-1,163
Other
165
-169
-541
Total other expense
855
-1131
-1,305
Income (loss) before income taxes
11,110
47,771
-15,599
Income tax benefit (provision)
10,537
-277
6,531
Net income (loss)
21,647
47,494
-9,068
Net income (loss) per share:
Basic
0,77
1,66
-0.32
Diluted
0,75
1,6
0
Weighted average shares outstanding:
Basic
28,205
28,669
28,003
Diluted
28,731
29,683
28,003
Exhibit 2
GenRad, Inc.
CONSOLIDATED BALANCE SHEETS
DECEMBER 30,200 AND JANUARY 1,2000
(IN THOUSANDS, EXCEPT PER SHAE AMOUNTS)
2000
1999
Assets
$
$
Current assets:
Cash and equivalents
8,321
6,951
accounts receivable, less allowance of $828 and $ 1,487
114,355
81,276
Inventories
65,551
49,068
Deferred tax assets
12,781
Other current assets
8,445
8,228
Total current assets
209,453
145,523
Property and equipment, net
47,620
43,194
Deferred tax assets
18,410
19,868
Intangible assets, net
91,497
38,686
Other assets
2,625
1,368
Total assets
3,699,605
248,639
Liabilities and Stockholders’ Equity
Current liabilities:
Trade accounts payable
21,427
21,841
Accrued liabilities
11,779
5,921
Deferred revenue
10,185
9,388
Accrued compensation and employee benefits
10,645
6,750
Accrued income taxes
2,987
3,760
Current portion of long-term debt
48,590
2,353
Total current liabilities
105,613
50,013
Long-term liabilities:
Long-term debt
45,050
3,653
Accrued pensions and benefits
8,999
9,175
Lease costs of excess facilities
3,922
Deferred revenue
1,232
1,005
Deferred tax liabilities
3,412
Other long-term liabilities
4,542
4,036
Total long term liabilities
63,235
21,791
Total liabilities
168,848
71,804
Stockholders’ Equity:
Common Stock
30,394
29,877
additional paid-in capital
225,738
221,854
Treasury stock
-31,292
-29,017
Accumulated deficit
-22,419
-44,066
Accumulated other comprehensive loss
-1,664
-1,813
Total stockholders’ equity
200,757
176,835
Total liabilities and stockholders’ equity
369,605
248,639
Exhibit 3
GenRad, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 30,2000, JANUARY1, 2000 AND JANUARY 2, 1999
(in thousands)
2000
1999
1998
Operating activities:
$
$
$
Net Income (loss)
21,647
47,494
-9,068
Adjustments
Depreciation and amortization
25,544
14,928
15,312
Allowances for Acct rec. and inv.
8,260
-3,875
1,520
Stock-based compensation
551
590
639
(Gain) loss on disposal of prop. And eqp.
878
116
-281
Deferred income tax benefit
-11,975
-4,500
-7,500
Acquired in process research and development
500
10,097
Restructuring and other non-recurring charges
1,291
16,403
Loss from impairment of intangible assets
4,906
Increase (decrease) in operating assets and liabilities
Account Receivables
-27,961
-17,386
10,257
Inventory
-17,338
-13,289
-4,120
Other Current Assets
605
-1,159
1,147
Account payable
-2,521
11,425
-2,951
Accrued liabilities
3,896
-10,400
-153
Deferred revenue
1,262
2,705
1,318
Accrued Compensation and employee benefits
-837
-1,602
-6,260
Other Current Assets
-1,327
-1,158
-2,335
Net cash provided by operating activities
2,745
23,889
28,931
Investing Activities:
Purchases of property and equipment
-18,255
-16,241
-15,157
Purchase of subsidiaries, net of cash acquired
-69,729
-490
-4,178
Development of intangible assets
-4,251
-4,886
-6,645
Net Cash used in investing activities
-92,235
-21,617
-25,980
Financing Activities:
Purchases from credit facility,net
87,534
-2,341
-2,433
Proceeds from employee stock plans
2,681
10,154
6,633
Purchase of treasury stock
-2,275
-18,716
-14,958
Net Cash provided by (used in) financing activities
87,940
-10,903
-10,758
Effects of exchange rates on cash
2,920
2,584
-1,078
Increase (decrease) in operating assets and liabilities
e) in cash and equivalents
1,370
-6,047
-8,885
Cash and cash equivalents at beginning of the year
6,951
12,998
21,883
Cash and cash equivalents at end of the year
8,321
6,951
12,998
Exhibit 4
GenRad, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 30,2000, JANUARY1, 2000 AND JANUARY 2, 1999
2000
1999
Inventories:
$
$
Raw materials
22,704
13,247
Work in process
31,378
17,891
Finished goods
11,469
17,930
65,551
49,068
Other Current assets:
Prepaid expenses
4,804
4,957
Other current assets
3,641
3,271
8,445
8,228
Property and equipment:
Leasehold improvements
14,376
13,738
Machinery and equipment
69,408
58,748
Service parts
17,381
12,459
101,165
84,495
Accumulated depreciation
-53,545
-41,751
47,620
43,194
Intangible Assets
Goodwill
50,932
22,311
Capitalized and purchased Comp Software
15,486
11,244
Developed Technology
22,510
11,370
Assembled workforce
4,741
1,444
Other intangible assets
21,946
3,182
115,615
49,551
Accumulated amortization
-24,118
-10,865
91,497
38,686
Accrued pension and benefits:
Accrued U.S. pension
1,634
1,795
Accrued foreign pension
4,420
4,526
Accrued postretirement benefit
2,945
2,854
8,999
9,175
Exhibit 5
Teradyne Inc.
ASSETS & LIABILITIES
DECEMBER 31, 2000 AND 1999
2000
1999
ASSETS
$
$
Current Assets
Cash and eq.
242,421
181,345
Marketable Sec.
60,154
66,316
Acct. Rec.
420,040
296,159
Inventories:
Parts
318,790
123,300
Assembled in process
159,123
145,393
Finished Goods
34,650
512,563
268,693
Deferred tax assets
93,958
49,716
Prepayments and other cur. Assets
48,698
45,458
Total current assets:
1,377,834
907,687
Property, plant, and equip.
Land
54,774
41,774
Buildings and improvements
293,124
238,136
Machinery and equipment
831,159
692,383
Construction in progress
75,520
9,693
Total
1,254,957
981,986
Less: Accumulated Dep.
-521,171
-484,247
Net Property,plant and equipment
733,786
497,739
Marketable Securities
161,848
139,752
Other assets
82,400
23,035
Total assets
2,355,868
1,568,213
LIABILITIES
Current Liabilities:
Notes Payable
7,389
8,221
Current portion of long-term debt
169
4,659
Accounts Payable
153,897
104,335
Accrued Employees compensation
158,817
117,314
Deferred revenue and customer adv.
183,465
60,096
Other accrued liabilities
86,637
66,223
Accrued income taxes
28,914
31,478
Total current liabilities
619,288
392,326
Deferred tax liabilities
21,257
13,907
Long-term debt
8,352
8,948
Total liabilities
648,897
415,181
Exhibit 6
Teradyne Inc.
SHAREHOLDER’S EQUITY
Common Stock (0.125$ par value)
21,570
21,290
Additional paid-in capital
334,241
234,198
Retained Earnings
1,351,160
879,544
Total Shareholder’s equity
1,706,971
1,153,032
Total liabilities and shareholder’s eq.
2,355,868
1,568,213
Exhibit 7
Teradyne Inc.
CONSOLIDATED STATEMENTS OF INCOME
Years ended December 31,
2000
1999
1998
(In thousands except per share amounts)
$
$
$
Net Sales
Expenses
Cost of sales
1,669,699
1,047,752
947,174
Engineering and development
300,920
228,570
195,158
Selling and admin.
362,562
256,392
212,885
2,333,181
1,532,714
1,355,217
Income from operations
710,765
258,198
133,934
Interest and other income
30,724
17,307
13,514
Interest expense
-1,841
-1,656
-1,566
Income before income taxes
739,648
273,849
145,882
Provision for income taxes
221,894
82,155
43,765
Income before cumulative effect of chg. in acct pri.
517,754
191,694
102,117
Cumulative effect of chg. In acct. pri.
-64,138
Net Income
453,616
191,694
102,117
Income per share before cumulative effect of chg., in acct pri.
2.99
1.12
0.61
Cumulative effect of chg. in acct.
-0.37
Net Income per common share
2.62
1.12
0.61
Exhibit 8
Teradyne Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
2000
1999
1998
$
$
$
Cash Flows from operating activities
453,616
191,694
102,117
Net Income
Adjustments to reconcile net income to net cash
Deprecation
99,929
85,279
75,351
Amortization
1,933
1,107
953
Charge for excess inventory
23,000
Deferred income tax benefit
-44,242
-4,101
-14,607
Other non-cash income tax benefit
-10,997
4,354
-804
Changes in operating assets and liabilities
Account rec.
-113,930
-76,856
81,630
Inventories
-235,319
-2,346
-16,990
Other assets
7,589
-24,576
-1,184
Accounts Payable
226,798
115,750
-18,530
Accrued income taxes
85,482
77,171
7,685
Net Cash provided by operating activities
470,859
367,476
238,621
Cash flows from investing activities:
Additions to prop, plant, and equipment
-235,189
-119,780
-119,457
Increase in equipment manufacturing
-63,053
-31,376
-44,983
Purchases of held to maturity marketable sec.
-409,180
-177,650
-20,000
Maturities of held to maturity marketable sec.
394,006
118,990
20,000
Purchases of available for sale marketable sec
-177,864
-204,824
-162,092
Proceeds from sales and Maturities
177,104
169,824
224,951
Cash acquired in acquisition
1,885
Net Cash used by investing activities
-312,291
-244,816
-101,581
Cash flows from financing activities:
Payments of long-term debt
-5,283
-1,333
-1,615
Issuance of common stock under stock option
55,263
82,323
26,579
Acquisition of treasury stock
-147,472
-207,819
-51,158
Net cash used by financing activities
-97,492
-126,829
-26,194
Increase(decrease) in cash and cash equ.
61,076
-4,169
110,846
181,345
185,514
74,668
Cash and cash eqi. At the end of the year
242,421
181,345
185,514
3
1