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Izmir National University Case Analysis

Mark Gillette, Kevin Maner, Bob Ramsey, and Dylan Terrana


Averett University
BSA 523
Dr. Paul Ewell
August 28, 2014

I. Summary of the Facts:


The case explains the process of introduction of Izmir National University (INU), a
Turkish University established in 2000. It aimed to assist the growth and development of areas
related to economy, engineering, and science in Europe. Five years prior to its opening, INU
reached 9,300 students and projected to start a new Business School. INU faced several issues,
mainly a shortage on faculty members (only 26 professors), inefficient screening selection
processes and inconsistent administrative responsibilities (Shafer, 2013). The new department
Dekan faced several issues towards guaranteeing the adequate development of this department
upon her arriving and thus decided to brainstorm with its teaching staff. Perhaps the collected
ideas did not help significantly, though they may assist her with decision making in the near
future. The Dekans biggest decision consists of whether continued growth (more students and
staff) or guaranteed quality of education (teaching and making research) is more important.

II. Statement of the Problem:


Izmir National University has experienced rapid growth in their organization within
recent years. The faculty in the Business School is unable to keep up with the growing demand
of students. This growth has led to confusion, lack of funding and resources and chaos among
employees. Clearly, the teaching staff seems to be uninformed and unmotivated. The newly
recruited Dekan has been able to identify these growing problems and has taken the first step in
trying to alleviate them by opening the lines of communication and asking for input from
employees.
By opening the lines of communication and reviewing the comments from faculty
members, it is evident that the organization has no direction or structure at all. There is a lack of

business strategy for the employees to implement or follow. For example, one employee notes
that research is the primary mission and they need more focus on the funding of research, and
another one states that the university places too much effort on research and they are only there
to teach. The university clearly lacks a business strategy and set of goals for the entire
organization to achieve.

III. Causes of the Problem:


This issue within the Business School is just part of the problem that stems from the lack
of strategy within the entire university. The solution to these problems, while focusing on the
improvement in the Business School, should be to keep the needs of the entire organization in
sight. Solutions need to be evaluated in terms of their effect on the entire system, not simply in
terms of how they will affect one component of the system (Shafer, 2013, p. 44). This is a very
real problem in the organization. If they hope to keep up with the growing number of students,
they must implement change immediately.
IV. Possible Solutions:
The recommended solution is to reevaluate the current business strategy (or lack thereof)
and determine the goals of the organization. The Dekan has already started on the path to
recovery of the Business School by opening the lines of communication. The Dekan should
continue on this route and coordinate with other managers on trying to increase the faculty in
order to offset the large number of inexperienced staff members. Training should also be
implemented in order to ensure the entire faculty is on the same page as to what the goals of the
organization are. The action plan should be followed and reevaluated each year to alleviate any

problems or changes that may occur. Since the Dekan has obtained input from the employees,
this information should be used in determining a new strategy for the INU organization.

V. Solution and its Implementation:


In order to resolve the issues, the organization needs to follow the combined steps of the
transformation process and the ones put forth in the text. The first step in the transformation
process is to alter the environment and the structure of the organization. Among other things, this
could include training and hiring additional faculty members. Since the university cannot
transport or store anything within their organization, they must then insert the steps from Kaplan
and Norton. These steps include determining how they will execute the strategy, use balanced
scorecards, hold information sessions to employees, offer question, and answer sessions so the
organization can assert the employees concerns upfront. Training should begin with all faculty
members and geared towards sharing information and technology to make the process effective
and easy. Finally, the transformation process entails inspection (Shafer, 2013). There should be
evaluations and performance measurements to demonstrate the effect on productivity.

VI. Justification:
If the Business School follows the steps described, the best-case scenario is that there will
be tangible proof of the improvements, retention rates will increase and the school will have the
skills necessary to handle any future growth they may encounter. They will also be setting a great
example to the students on how important a successful business strategy can be to an
organization. The worst-case scenario is that managers run the risk of hesitation from employees;
they already feel overworked and may be unwilling to take on more responsibility and training to

work towards this goal. If the managers and faculty work together to implement the steps for
creating a business strategy the outcome will most likely be a positive one, and hopefully it will
be an example for the rest of the university and they will follow suit.

VII. End-of-Case Questions


1. What do the comments by the faculty tell you about INUs strategy?
The opinions expressed by faculty members differ completely and do not follow
the same direction and criteria towards fulfilling INUs strategy. They should consider Human
Resources (HR) techniques and processes in order to develop better standards and procedures.
The first step would be to establish a Human Resources (HR) department. HR must be
able to conduct efficient screening processes and training when hiring the new teaching staff. It
should work along the Business School, creating a better, solid and consistent curriculum. With
that, some of the issues expressed by faculty members will reflect a similar pattern, opening
more opportunities to enhance the communications within INU.
2. What would you recommend the Dekan do regarding the business schools strategic planning
process? What role would you recommend the Dekan play in this process?
The Dekan needs to take an active leadership role and oversee the strategic planning
process. She should demand regular updates and conduct regular discussions with the strategic
planning team. An action plan (incorporating priorities, schedules, resource requirements, etc.)
should be derived from the strategic plan. This plan should be implemented by the Dekan as the
blueprint for the universitys future development.
3. Productivity is defined as the ratio of output to the input used to create it. How could the
productivity of the Business School be measured?

The productivity of the Business School could be measured by soliciting feedback from
all students and faculty. The productivity analysis is tracking trends in an increase or decrease in
retention rates. Additionally, conducting performance reviews each year and asking for candid
feedback from faculty members.
4. What would the effect be on productivity if the entire faculty received a 10 percent raise but
continued to teach the same number of classes and students?
The productivity situation would remain the same. The problems will only go away with
a change in structure and strategic planning. By giving faculty members a 10% raise, the only
effect on faculty will make them more enthusiastic about teaching. This will not solve the
problem because there is little information or communications with faculty. Each of the faculty
members will each continue on the same path they are going and not on the path towards the
same goal. Providing faculty with an increase in salary, does not address or change the inherent
problems at INU.

References
Shafer, J. R. (2013). Operations Management for MBAs (Fifth ed.). Hoboken, NJ, USA: John
Wiley & Sons, Inc.