CRITICAL THINKING CASENORTHERN INDUSTRIESNorthern Industries has
asked you to help it resolve some racial issues that, according to
president Jim Fishers, are festering in their manufacturing plant
in Springfield, Massachusetts. Northern Industries is a family
owned enterprise that manufactures greeting cards and paper and
plastic holiday decorations. It employees 125 people full time,
including some African - Americans and Asians. About 80 percent of
the full time work force is females. During the peak production
month of September and January (to produce orders primarily for
Christmas/Hanukkah and Mothers Day ) , the company runs a second
shift and adds about 50 part -time workers , most of whom are also
women and minorities.
All orders are filled with batch runs made to customer
specifications. In a period of a week, filling seventy different
orders requiring different paper stock, inks, plastics, and set ups
isnt unusual. Since these orders vary greatly in size. The company
has a long term policy of giving priority to high volume customers
and processing other orders on a first come first serve basis. Half
a dozen of the companys largest customers have been doing business
with northern for more than twenty years. Having been singed up by
Jim Fishers father (now retired ) to begin your orientation to the
company. Fisher asks his Production Manager, Walter Beacon, to take
you around the plant. Beacon points out the production areas
responsible for each step in the manufacture of a greeting card,
from purchasing to printing to quality control to shipping. The
plant is clean, but the two large printing rooms - each of which is
the workplace for about twenty-five workers. are quiet noisy. You
catch snatches of employees conversations, but you cant figure out
what language they are speaking. In the shipping and receiving
department you notice that most workers are African American,
Beacon confirms that eight out to ten of the workers in that
department are African American men, as is their boss, Adam
Wright.Jim fisher had agreed that you could attend a meeting of top
management to get a feel for the problems facing the company. The
president introduces you and notes that several of his managers
have expressed concerns about certain p roblems. He says that one
of these problems is that each of the minority groups sticks
together. The African Americans and Orientals rarely mix. another
recent problem has been the theft of finished products , specially
on the second shift, and we had to fire a Thai worker.
Then Fisher described what he recently had read about self
directed teams and the success of these teams at San Diago Zoo and
Kodack,. He stated that implementing such a concept at Northen
would require a lot of employee training in different functions.
Such as printing, shipping and quality control to give all employee
an understanding of how their job affect those of others in[Type
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the organization. He also said that flow charts would be needed
to track the activities of employees. From the time and order is
received until the order is shipped with flow charts, a team of
employees could pinpoint inefficiencies in the manufacturing
process better than managers could. Employees could then suggest
ways to manufacture cards other produ cts more profitably.Fisher
then turns to his executive team to discuss its daily business, the
others present are the General Manager , Human Resources Manager(
the only woman) ,Sales Manager, Quality Control Manager ,
Production Manager ( Beacon ) ,and the Shipping and Receiving
Manager ( the only nonwhite manager ) .Soon an angry debate erupts
between the Sales and Shipping /Receiving Managers. Apparently
orders are not being shipped quickly enough, according to the Sales
Manager, and several complaints have been received from smaller
customers about the quality of the product , the Shipping/Receiving
Manager argues that he needs more hands to do the job and that the
quality of the incoming supplies is lousy any how. While this
debate continues the othe r managers are silent and seemingly
uncomfortable. Finally one of them attempts to break up the
argument with a joke. Fisher and the other men laugh loudly, and
the discussion shifts to other topics.
Questions:1. What are Northern obvious and not so obviou s
problems? Give reasons from the case. 2. Which of the management
view point helps you most in understanding Northerns problems?
Explain. 3. What changes would you recommend to Jim Fisher ? 4.
What problems might you faced in trying to implement your
recommendations? 5. According to your understanding draw the
organizational structure (Chart) of the Northern and name the
people who are in the designated places according to the case. 6.
According to the present situation which theory you would recommend
to Fisher for a change and you have to justify answer by comparing
and stating the advantages with the present one they are using. 7.
Refer to the Sales Manager and Shipping /Receiving Manager s
argument: How do you think that they should change their manageri
al roles not to face that type of incident again? What type of
skills they should improve? Assessment Criteria:
y y y y
Analyze the relationship between an organizations structure and
culture and the effects on business performance. Analyze the
factors which influence individual behavior at work Analyze how
organizational theory underpins principals and practices of
organizing and of management Compare the different approaches to
management and theories of organization used by organizations.
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Question 1Nothern industry is a leading company which is started
more than twenty years before. This is family owned enterprise.
According to my view the new management is unconcern. This is the
main reason to festering racial issues and other growing problems.
Because this company doesn t has this kind of problems with retired
president with the same combination of employees.
Most of the employees are African-Americans and Asians. These
employees are talking different languages as I saw. Most of them
can not communicate with other minority groups because of the
language problem. So they have choose there unique way. Each
minority groups sticks together. Those groups do not like to mix
and do not like to work together. This is an aggravating problem.
The production speed is very slow and Nothern not be able to
achieve there target between standard time period in this case.
Most employees of northern are females. Normally females have so
many family problems and psychological problems rather than males.
Nothern do not care about female employees mentality. Production of
northern is depending on female employees. Because 80% of the
Nothern employees are females. So mentally level of the female
employees are very important to the production velocity. This will
directly affect to the company profit.
The theft of finished product also another recent problem of
Nothern. This seems to be employees are not satisfied. The main
reason to happen this kind of theft is supervisors do not do there
duty frankly. I understood that company security is very law in the
second shift.
I agree with company policy of giving priority high value
customers and processing other orders on a first come first serve
basis. But quality priority of giving high quality for high value
customers and law quality for law value customers is harmful. Small
customers always complains about the quality of the Nothern
products. High value customers receive High quality products. If
this policy continues, in future Nothern will lose there small
customers. This is not a good situation .
Shipment of Nothern is doctrinaire. Customers expect there
orders at the correct time. Because most customers target is
seasonal business. But Northern do not provide a good customer
service. This is another problem
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Nothern faces. In this case some high value customers of Nothern
can move to other companies. Quality of the product directly
depends on quality of the incoming supplies. According to the
Shipping and Receiving Manager the quality of the incoming supplies
are very law. He says that is the reason for law quality products.
Discordant of top management also a big problem to the Nothern
industry. Sales manager and shipping/receiving manager are very
important management to the company. The argument of there weakness
is pointless. Because of the discordant of top managers company
profit will go down.
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Question 2According to the problems of Nothern industry I
understood the problems through the traditional view points. There
are three main branches in traditional view point.y y y
Bureaucratic management. Scientific management. Administrative
management .
According to the Nothern case Administrative management explains
the situation. The view point focuses on the manager and the basic
managerial functions. There are fourteen management principles in
this theory.Fayols 14 principles of management
1. Division of labor: work must be subdivided to facilitate
specialization; 2. Authority: authority and responsibility should
go hand in hand; 3. Discipline; discipline is important to develop
obedience, diligence, energy and respect; 4. Unity of command:
subordinates must report to one superior; 5. Unity of direction:
all operations with the same objective must have one manager and
one plan; 6. Subordination of individual interest to general
interest: the intere st of one individual or group should not
dominate the interest of the enterprise as a whole; 7.
Remuneration: remuneration and all other methods of payment should
be fair; 8. Centralization: managers always hold final
responsibility but should delegate certain a uthority to
subordinates; 9. Scalar chain: a clear line of authority or chain
of command should extend from the highest to the lowest level of an
enterprise. This helps to ensure an orderly flow of information and
complements the principle of unity of command; 10. Order: there is
a place for everything and everything in its place. Proper
scheduling of work and timetables to complete work is important.
This can facilitate the channeling of materials to the right place
at the right time;
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11. Equity: employees should be treated with kindness and
justice; 12. Stability of tenure of personnel: managemen t should
work towards obtaining long-term commitments from staff and avoid
unnecessary turnover of staff which is costly and works against
overall goal accomplishment; 13. Initiative: workers should feel
like an active part of the organization through conceiving and
executing plans in order to develop their capacity to the fullest;
14. Esprit de corps: harmony and union help to build the strength
of an enterprise. It is an extension of the principle of unity of
command, emphasizing the need for teamwork and the imp ortance of
communication .
According to the first principal, devisioning of labor people
specialize makes efficient of there work. Nothern industry do not
have this kind of skills to maximize the efficient of employees.
This is a reason to entire company s law efficient. Members of an
organization need to respect according to Discipline principle.
Company respect their members. But company do not take employees
ideas. As well as there is no unity direction. There is no one to
take responsibility for the employees behavior. Subordination of
individual interest to the common good is a main point. According
to this principle the interest of the individual employees should
not take the precedence over the interest of the entire
organization. Nothern situation is , employees has their own groups
according to there racial issues and they do not work together and
some times they try to conflict. They have neglected the entire
company interest. Company can not survive. Pay for work done should
be fair to both the employee and the employer according to the
Rumuneration principle. Nothern company pays the same amount
everyday whether the productivity is law or high. This policy must
change according to the Rumuneration principal. Company should pay
the employees according to the contribution to the company. Company
should pay for employees contribution to the company. According to
the Equality principle, managers should be both friendly and fair
to their subordinates. The management of Nothern is sever for
subordinate s. This feature makes distance between subordinates and
manager. Company management keep law communication with
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According to the stability and tenure of staff, a high rate of
employee turnover is not efficient. This explains the situation of
Nothern employees. Company must understsnd employees personal needs
and must try to provide them according to company policies.
According to the Administrative management, company have to follow
administrative management principles arrive top of the industrial
level.
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Question 3Notherns main problem is the racial issues. Nothern
has to fix the peace of each groups. Mr. Jim fisher should think
out of the official way to fix this racial problems. The main thing
is the language problem. They do not try to communicate with other
groups. Executive team must try to use a common language in the
company and they should try to take it as a rule of the company. I
think each employee in the company must use English language.
Because English is an international ;language and every one knows
Engli sh. Managers can organize an impressive penalty system for
employees who are not talk in English language in the company. This
rule should allowed to executive team too. This will help to
develop the togetherness of employees. The goal conflict exist
between firm and its employees, but the importance and intensity of
this conflict is very law. The harmony between employees and firm
in Nothern is very weak. The top managers think the company only
depends on them. But firm and employees both are very import ant to
a company. Firm can not survive without employees and employees can
not survive without firm. So Nothern should change their culture.
Togetherness of employees will minimize the cost of the product by
increasing the intensity of production speed. S ome of the ways to
fix the peace in company is, celebrate sports meet, Cultural
festivals, etc Through held these kind of festival each groups will
work together for the success of their festival. Then they will mix
and work together. This will increase t he profit. Nothern has to
minimize the cost of products and innovative products which result
in shifting and increasing there focus towards new goals. Increase
the magnitude and intensity of goal conflict and it become very
difficult for both firm and employees. So president Jim Fisher to
pay attention to needs of employees and let them to achieve there
personal goals and satisfy there needs by hard working. The firms
primary goals of survival are, quality control, productivity
increase, Cost minimization, Innovation and product development.
These are Notherns top managements goals. Firms goals constrained
employees. Employees have to work hard and spend more time to
achieve these goals at the correct time period. Company should
achieve these goals with satisfying employees own needs and
achieving there own goals whish is important for there own
survival. The other problem in this case is sever employees
resistance to spend extra time. The possible way to achieve these
company goals at that time by the firm was to utilize its employees
efficiently and effectively, and to pay them according to their
contributions in the firms profit, demanding more of their efforts
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80% employees of the company is females. This case is very
important to the company. Presidents attention should turn to the
female employees rather than currently do. Because the production
survive on female employees. Company should motivate the female
employees.
How Males and Females Differ Widely in Their Workplace Needs
Seasoned employers know that there is a difference in the needs
of male and female employees. Males are often driven by a paycheck,
whereas women are more inclined to take a pay cut in exchange for a
desirable work environment. While men look to excel by moving up in
their companies and developing their careers, many female employees
are concerned with gaining a position that simply allows them more
freedom and flexibility, as well as the opportunity to make a
difference and display their talents. This bei ng true, employers
can no longer rely on antiquated motivational tactics, which were
originally developed for men, to get the most productivity from
their female employees. The key to getting a female to give her all
in the workplace is to understand what it is that really spurs her
on, and how to use that to company advantage. So company must find
female employees needs and satisfy them. Company should develop the
sanitation facility rather then now. Females care about there
security at the work place. Security of the first ship is well. But
they do not satisfy the security of second shift that they mostly
intent. Company should confirm the security of the second shift. It
is better to provide a transport service after the second
shift.
Poor labors are interested in maximizing their own utility by
getting more salaries, investing less efforts and time, good
working environment, and better facilities. Most of the printing
machines and other machinery items are postponed. Relative to other
resent companies Nothern unable to competitive with other recent
companies. Most of the machines are increase the cost of
production. Machines are very slow, but need more employees to
operate those postponed machines. Company must use the new
technology to increase the production speed and minimize the cost
of products.
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Some employees not trained well as I saw in the plant. This is
also a main reason to minimize the intensity of production speed.
It is better to appoint few trainers for train new employees. This
will show more performance in future.
Self-directed Teams
A self-directed team is a multi skilled cross-functional group
of employees who share responsibilities for producing a particular
service or product. The difference between a self-directed team and
a cross-functional team is the self-directed team possesses
full-empowerment of responsibility for results. Self-directed work
teams have a solid track record and many case studies have been
developed demonstrated their success. One of the major issues
surrounding the use of self-directed teams is empowerment. People
are empowered when they are given the authority and responsibility
to make decisions affecting their work with a minimum of
interference and second guessing by others. When people are
empowered they bring their minds to work. They are engaged in
making decisions that affect their part of the business. They take
responsibility for their actions. They work free from the petty
bureaucratic hassles that diminish value and waste time. They add
value to the organization by embracing the principles of quality
and service. They search for ways to make a difference. The problem
is company view of organizations is based on the military model of
hierarchy and chain of command. People above make the decisions,
people below carry them out. This model is firmly entrenched and
difficult to overcome. The problem is many lower and middle level
managers have difficulty giving up what they perceive is their
hard-earned right to make a decision. Thus they are living in a
paradigm that is hard to change. Resistance to change is the result
of this paradigm.
The use of Self -Directed work Teams can increase
competitiveness. One solid application is using the team as a
device to compress total throughput time in an organization from
order entry through shipment. As an example, the development of
customer service cells along with collocation of the cell members
has long proven to show clear results in compressing the time it
takes to get an order to the shop floor.
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But just like anything else, using Self -Directed Teams is no
panacea, nor should it be embraced as a religion. It is an
operational strategy that, if implemented properly, can provide a
new dimension to competing: q uickly introducing new customized
high quality products and delivering them with unprecedented lead
times, swift decisions, and manufacturing products with high
velocity.
Training employees is an essential activity for all organiz
ations. Training provides employees with the key knowledge and
skills th at they need to perform their job.Benefits of
trainingy
As the business world is continuously changing, organizations
will need to provide their employees with training throughout their
careers. If they choose not to provide continuous training they
will find it difficult to stay ahead of the competition. The other
benefit of training is that it will keep employees motivated. New
skills and knowledge can help to reduce boredom. It also
demonstrates to the employee that they are valuable enough for the
employer to invest in them and their development. Training can be
used to create positive attitudes through clarifying the behaviors
and attitudes that are expected from the employee. Training can be
cost effective, as it is cheaper to train existing employees
compared to recruiting new employee with the skills you need.
Training can save the organization money if the training helps the
employee to become more efficient.
y
y
y
y
Induction training
This is training that an employee will receive when they first
join a n organization or begin a new role. This type of training is
designed to provide the employee with the essential skills needed
to perform their job. Induction training can also include an
introduction to the company ethos, values and culture so that the
employee is aware of the behaviors expected of them.
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On the Job training
As the name suggests, on the job training, is training provided
during the regular performance of duties. This can take a variety
of forms including:y
The employee being guided throug h a task or process by a
colleague or supervisor, so that the employee knows how to perform
the task and to what standard. Shadowing, spending time with an
expert so that the employee can observe how the expert performs
their daily duties. Observations, the employee is observed whilst
they perform their duties. At the end of the observation, the
observer will provide the employee with feedback on their
performance. Coaching, the employee will learn new skills (not
knowledge) and have the opportunity to practice the skills with the
coach before using the skills in the workplace. An effective coach
will review the employees performance to ensure that the employee
uses the newly learnt skills until they become habit. Mentoring,
the employee is partnered with an experienced employee so that they
can discuss performance. The experienced person is known as the
mentor and the employee they are partnered with we will call the
mentoree. The mentoree will discuss their performance and problems
with the mentor.
y
y
y
y
Off the Job training
This is training provided away from the employees usual work
environment and the employee will stop their usual duties/work
during the training. Off the job training may be in the same
building or off site. This training may be provided by trainers
working for the same employer as the employees being trained or an
outside company hired by the employer.
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Some of Nothern product item quality is law. Company provide it
to law value customers according to the company policy. This will
harm the Nothers popularity. Company should attract small
customers. Then only northern can earn a good profit. But according
to company policy of law quality for law value customers will
definitely affect to the company profit in future. So company must
change this wrong policy and should provide same high quality
products to all customers. Popularity of the Nothern company
products will go down if not change this policy. Then demand will
go down, profit will go down and Nothern can not competitive with
other companies. The main reason to law quality product is law
quality incoming supplies. High quality raw materials are
expensive. But High quality products are conforming Nothrns
survival. Quality products provide customer satisfaction. Then the
product will allure the customer. Top managers must take the risk
of this current situation.
Togetherness of top managers is very importance as well as
employees togetherness. I can not see the top managers togetherness
in the company. Managers have to work together for the survive of
the company. Sales and Shipping/receiving managers services are
very important to the company. They have to help each other to
correct there mistakes. Shipping/receiving manager must take the
responsibility to ship the finished products between the correct
time period to the correct person. An automotive shipping clerks
main responsibility is to store and ship product in an efficient
manner. Sales manager has one of the toughest job. Sales manager
should personally motivate his team members and he should be
sensitive to each team member, their personal life. Nothern sales
manager should change his policies and managerial role.
Five areas to develop sales team 1. Accountability
An easier way to go to target than just pounding on your team is
to tap into personal motivation. Help each team member define
exciting personal goals that create commitment and desire. Then
assist each individual in seeing how the company can be a personal
vehicle to achieve their personal goals. Build a covenant to hold
each person to the fundamental activities that produce results
bringing them closer to their own personal goals. Once that is
accomplished every one has a true partnership. It may not be
everyone goal to work for the company forever, so find out what
they want, help them get it and as long as you help them they help
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2. Coaching
A coachs job is to help others perform at a higher level than
they can by themselves. A coach is required to get people out of
their comfort zone. Coaches find a way to keep the team inspired.
Sometimes its tough love, sometimes it is encouragement, sometimes
it keeping the focus clear! A coach is like the leader of an
orchestra. He knows how every instrument is played and what each
part is supposed to be. Then he brings it all together for an
awesome and exquisite performance.
3. Motivation
In a perfect world sales people are motivated. But this isnt no
perfect world and salespeople deal with more rejectio n and
negativity than any other profession. So its critical that the
Sales Manager be sensitive to each team member, their interactions
with each other, their personal life and what is really going on
under the surface. Sales people are motivated by many different
things just as any other group. Believe it or not most sales people
are not as money motivated as everyone on the outside may think.
Competition and recognition are bigger motivators.
4. Pre and Post Briefing
One of the most important things a sales manager can do is to
help the sales person learn the right lesson form each selling
situation. Often should draw conclusions from events that seem
logical. All know that many of those conclusions are incorrect and
then salespeople make the same mista ke over and over again.
Another problem is changing to quickly. Most salespeople are
creative and continue to change something due to an event. Instead
of asking typical questions that get you typical answers define the
fundamental issue and focus on that. Keep a log of what events take
place with each sales person and look at a 30, 60, & 90 day
pattern. This will work on the right end of the problem and it is
usually between the ears.
Just like sighting in a rifle. Most shooters when sighting in
will mak e adjustments after each shot. However, the more
experience shooter will fire three shots, triangulate the center
and adjust from there.
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5. Building a Stronger Team
This means to always be looking for stronger salespeople to add
to the staff. The problem here is like most departments. The manger
gets emotionally involved and it becomes difficult to graduate non
productive or mediocre sales reps. Sales recruiting is a must. Then
have to be able to determine the difference between those who not
only can sel l, but will. The only way to truly be effective with
the first 4 responsibilities is to never be held hostage. Then this
brings up the on boarding issue, ramp up and training. Every one
should decide to stop accepting excuses, take responsibility for
growi ng the team and work smart, not hard.
Nothern customer service is doctrinaire. But company provide a
good customer service for there high value customers. The company
ignores small customer complains. Small customers also a main part
of the company. So company must provide the same customer service
for small customers too. If not small customers will turn to other
companies who are providing efficient after sales services.
Eight rules for good customer service : 1. Answer your
phone.
Get call forwarding. Or an answering service. Hire staff if you
need to. But make sure that someone is picking up the phone when
someone calls your business. People who call want to talk to a live
person, not a fake recorded robot.2 . Dont make promises unless you
WILL keep them.
Not plan to keep them. Will keep them. Reliability is one of the
keys to any good relationship, and good customer service is no
exception. If you say, Your order will be delivered on Tuesday,
make sure it is delivered on Tuesday. Otherwise, dont say it. The
same rule applies to client appointments, deadlines, etc..Think
before you give any promise because nothing annoys customers more
than a broken one.
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3. Listen to your customers.
Is there anything more exasperating than telling someone what
you want or what your problem is and then discovering that that
person hasnt been paying attention and needs to have it explained
again? From a customers point of view. Can the sales pitches and
the product babble. Let the customer talk and show him that you are
listening by making the appropriate responses, such as suggesting
how to solve the problem.4. Deal with complaints.
No one likes hearing complaints, and many of us have developed a
reflex shrug, saying, You cant please all the pe ople all the time.
Maybe not, but if you give the complaint your attention, you may be
able to please this one person this one time - and position your
business to reap the benefits of good customer service.
5. Be helpful - even if theres no immediate profit in it.
6.Train your staff (if you have any) to be ALWAYS helpful,
courteous, and knowledgeable
Talk to staff about good customer service and what it is (and
isnt) regularly. Most importantly, give every member of the staff
enough information and power to make those small customer-pleasing
decisions, so he never has to say, I dont know, but so-and-so will
be back at...7. Take the extra step.
For instance, if someone walks into your store and asks you to
help them find something, dont just say, Its in Aisle 3. Lead the
customer to the item. Better yet, wait and see if he has questions
about it, or further needs. Whatever the extra step may be, if you
want to provide good customer service, take it. They may not say so
to you, but people notice when people make an extra effort and will
tell other people.
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8. Throw in something extra.
Whether its a coupon for a future discount, additional
information on how to use the product, or a genuine smile, people
love to get more than they thought they were getting. And dont
think that a gesture has to be large to be effective. The local art
framer that we use attaches a package of picture hangers to every
picture he frames. A small thing, but so appreciated. If you apply
these eight simple rules consistently, your business will become
known for its good customer service. And the best part of irony of
good customer service is that over time it will bring in more new
customers than promotions and price slashing ever did!
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Question 4Implement of these recommendation is not easy.
President must handle this carefully. Culture is the conventional
behavior of a society that encompasses beliefs, customs, knowledge,
and practices. It influences human behavior, even though it seldom
enters into their conscious thought. People depend on culture as it
gives them stability, security, understanding, and the ability to
respond to a given situation. This is why people fear change. They
fear the system will become unstable, their security will be lost,
they will not understand the new process, and they will not know
how to respond to the new situations. Individualization is when
employees successfully exert influence on the social system by
challenging the culture.
Impact Of Individualization On A Organization
_______________________________ High | | | | | | | | | | Conformity
| Creative | | | Individualism | | | | Socialization
|_______________|_______________| | | | | | | | | | | Isolation |
Rebellion | | | | | | | Low |_______________|_______________| Low
Individualization High
Company should be able to spend a big amount of money to buy new
machines. And also company cannot work during this repairing
period. Training employees is very important. B ut its difficult to
find experienced trainers and also they will expect a big
salary.
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When it is comes to product quality, company should buy good
quality raw materials to product high quality goods. In this case,
company should change the currently dealing market. There is a
problem in this event. If company has any written agreements with
those dealers, it is not practical to change the dealing places.
Company must increase the profit when the start to pay employees
according to the contribution. If not it will make suffer both firm
and employee. When it is comes to female employees, it is hard to
make them satisfy. Because company should spend big amount to
improve the sanitary facility. And also it is difficult to provide
them a transport service. Beca use they are coming from different
places. Employees don't understand reasons for decisions, they are
not involved in decision-making. As a result, employees trust the
"rumor mill" more than management. There is disagreement about "who
does what". These factors will be the problems while implement my
recommendations.
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Question 6Theory X and Theory Y
Both of these theories begin with the premise that management's
role is to assemble the factors of production, including people,
for the economic benefit of the firm. Beyond this point, the two
theories of management diverge.
Theory X
Theory X assumes that the average person:y y y y y
Dislikes work and attempts to avoid it. Has no ambition, wants
no responsibility, and would rather follow than lead. Is
self-centered and therefore does not care about organizational
goals. Resists change. Is gullible and not particularly
intelligent.
Essentially, Theory X assumes that people work only for money
and security.
Theory X - The Hard Approach and Soft Approach
Under Theory X, management approaches can range from a hard
approach to a soft approach. The hard approach relies on coercion,
implicit threats, close supervision, and tight controls,
essentially an environment of command and control. The soft
approach is to be permissive and seek harmony with the hope that in
return employees will cooperate when asked to do so. However,
neither of these extremes is optimal. The hard approach results in
hostility, purposely low output, and hard-line union demands. The
soft approach re sults in everincreasing requests for more rewards
in exchange for ever -decreasing work output. The optimal
management approach under Theory X probably would be somewhere
between these extremes.
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Theory Y
The higher-level needs of esteem and self-actualization are
continuing needs in that they are never completely satisfied. As
such, it is these higher -level needs through which employees can
best be motivated. Theory Y makes the following general
assumptions:y y y y y
Work can be as natural as play and rest. People will be self
-directed to meet their work objectives if they are committed to
them. People will be committed to their objectives if rewards are
in place that address higher needs such as self -fulfillment. Under
these conditions, people will se ek responsibility. Most people can
handle responsibility because creativity and ingenuity are common
in the population.
Under these assumptions, there is an opportunity to align
personal goals with organizational goals by using the employee's
own quest for fulfillment as the motivator. Theory Y management
does not imply a soft approach. According to the current situation,
I realized company management currently assume Theory X. Employees
dislike to work and they do not care about organizational goals.
And a lso they do not like to change the current situation. Most of
the employees do not take responsibility. These problems will be
resolve according to Theory Y. If company try to apply Theory Y,
people will be self directed. Steal of finished products will be
stop by self directed teams. Because employees will take
responsibility. It will be a big tolerance to the company.
According to Theory Y employees will be able to satisfy there own
needs through satisfying organizational needs. Shipping/receiving
manager says he need more hands to do the job. According to his
idea, employees are not efficient. This problem will resolve
according to Theory Y. Shipping/receiving department do not need
more employees when they apply Theory Y. Because it will increase
the eff icient of employee.
The Problem with Theory X
Drawing on Maslow's hierarchy, a satisfied need no longer
motivates. Under Theory X the firm relies on money and benefits to
satisfy employees' lower needs, and once those needs are satisfied
the source of mot ivation is lost. Theory X management styles in
fact hinder the satisfaction of higher -level needs. Consequently,
the only way that employees can attempt to satisfy their higher
level needs in their work is by seeking more compensation, so it is
quite predictable that they will focus on monetary rewards. While
money may not be the most effective way to self -fulfillment, in a
Theory X environment it[Type text] Page 22
may be the only way. Under Theory X, people use work to satisfy
their lower needs, and seek to satisfy their higher needs in their
leisure time. But it is in satisfying their higher needs that
employees can be most productive. Command and control environment
is not effective because it relies on lower needs as levers of
motivation, but in modern society those needs already are satisfied
and thus no longer are motivators. In this situation, one would
expect employees to dislike their work, avoid responsibility, have
no interest in organizational goals, resist change, etc., thus
making Theory X a self -fulfilling prophecy. From this reasoning,
that is why I proposed an alternative: Theory Y.
Theory Y Management Implications
If Theory Y holds, the firm can do many things to harness the
motivational energy of its employees:y
Decentralization and Delegation If firms decentralize control
and reduce the number of levels of management, each manager will
have more subordinates and consequently will be forced to delegate
some responsibility and decision making to them.
y
Job Enlargement Broadening the scope of an employee 's job adds
variety and opportunities to satisfy ego needs.
y
Participative Management Consulting employees in the decision
making process taps their creative capacity and provides them with
some control over their work environment.
y
Performance Appraisals Having the employee set objectives and
participate in the process of evaluating how well they were
met.
If properly implemented, such an environment would result in a
high level of motivation as employees work to satisfy their higher
level personal nee ds through their jobs. According to these
considers Theory Y is the most effective theory for Nothern indust
ry.
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Question 7Refer to the Sales Manager and Shipping/Receiving
Managers argument the shipment department is not efficient.
Shipping/receiving manager should improve leader role here.
Directing, motivating, training, counseling and communicating
subordinates are the leaders responsibility. He must motivate his
subordinates and he must generate a efficient Shipping/Receiving
department which establish a good customer satisfaction. According
to Sales Manager, small customer complains about the quality of the
product. In this case, Sales Manager and Production Manager both
should follow the Resources Allocator role. This role is analysis
of how sca rce resources ('factors of production') are distributed
among producers, and how scarce goods and services are apportioned
among consumers. This analysis takes into consideration the
accounting cost, economic cost, opportunity cost, and other costs
of resources and goods and services. Allocation of resources is a
central theme in economics and is associated with economic
efficiency and maximization of utility. Liaison Role involve public
relationing and networking both inside and outside the
organization. As I saw there is a disapproval between Sales and
Shipping/Receiving Manager. They have to improve Liaison Role to
prevent this kind of problems. If they follow Liaison role, Nothern
industry will be able to make a peaceful executive team who are
working together to achieve organizational goals.
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Grade Descriptor for MeritM1 Identify and apply strategies to
find appropriate solutions
Possible Evidence Effective judgments have been made Complex
problems with more than one variable have been explored Relevant
theories and techniques have been applies A range of sources of
information has been used Appropriate learning methods / techniques
have been applied The appropriate structure and approach has been
used Coherent, logical development of principals/ concepts for the
intended audience The communication is appropriate for familiar and
unfamiliar audience and appropriate media have been used
Feed back
M2 Select /design and apply appropriate methods / techniques
M3 Present and appropriate findings
communicate
Distinction DescriptorsD1 Use critical reflection to evaluates
own work and justify valid conclusions
Indicative Characteristics Conclusions have been arrived at
through synthesis of ideas and have been justified Self criticisms
of approach has taken place Realistic improvements have been
proposed against defined characteristics for success Autonomy /
independence has been demonstrated The unforeseen has been
accommodated The importance of interdependence has been recognizes
and achieved Ideas have been generated and decisions taken
Innovation and creative thought have been applied Receptiveness to
new ideas is evident
Feedback
D2 Take responsibility for managing and organizing
activities
D3 Demonstrate convergent / lateral / creative thinking
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