Problem

After winning the 2001 election, the new governor of Virginia, Mark Warner, named Phillip Shucet to head the Virginia Department of Transportation (VDOT). Shucet was eager to bring his private-sector experience and management experience to VDOT, and he knew it would be a challenge. VDOT was renowned for its engineering innovation and cutting-edge research. More recently, though, the department's public reputation had become damaged, and employee morale had hit rock bottom. The case describes the situation at the time the commissioner took over and offers a glimpse into the workings of a large governmental agency.

1. Identify three management theories (one from classical approaches, one from the human relations approach, and one from the modern management approaches) that you think would be applicable in managing VDOT and the impact this change might have on organizational behavior within VDOT. Justify your choices with examples.

2. Explain how VDOT has reacted to the six challenges that face managers in the 21st century and evaluate its impact on VDOT's effectiveness.