CRITICAL THINKING CASE

NORTHERN INDUSTRIES
Northern 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
Mother’s 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 isn’t 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 company’s largest customers have been doing business with
northern for more than twenty years. Having been singed up by Jim Fisher’s
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 problems. 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

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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 products 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 other 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 obvious problems? Give reasons from
the case.
2. Which of the management view point helps you most in understanding
Northern’s 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 managerial roles not to face
that type of incident again? What type of skills they should improve?

Assessment Criteria:

 Analyze the relationship between an organization’s 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 1
Nothern 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 2
According to the problems of Nothern industry I understood the problems
through the traditional view points. There are three main branches in
traditional view point.

 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.

Fayol’s 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 interest 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 authority 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: management 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 importance 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 subordinates.
This feature makes distance between subordinates and manager. Company
management keep law communication with subordinates. So company can
not achieve there goals.

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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 3
Nothern’s 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 English. 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 important 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. Some 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 the
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 firm’s primary goals of survival are, quality control, productivity increase,
Cost minimization, Innovation and product development. These are Nothern’s
top management’s goals. Firm’s 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 firm’s profit, demanding more
of their efforts and time.

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80% employees of the company is females. This case is very important to the
company. President’s 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 being 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: quickly
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 organizations. Training

provides employees with the key knowledge and skills that they need to
perform their job.

Benefits of training

 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.

Induction training

This is training that an employee will receive when they first join an
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:

 The employee being guided through 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 employee’s
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.

Off the Job training

This is training provided away from the employee’s 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 Nother’s
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
Nothrn’s 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 manager’s 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 clerk’s
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 you.

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2. Coaching

A coach’s 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 it’s 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 isn’t no perfect world
and salespeople deal with more rejection and negativity than any other
profession. So it’s 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 mistake 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 make
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 sell, 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 growing 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 . Don’t 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, don’t 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 hasn’t been
paying attention and needs to have it explained again? From a customer’s
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 can’t please all the people 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 there’s 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 isn’t) 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 don’t 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, don’t just say, “It’s 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 it’s 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 don’t 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 4

Implement 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. But 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. Because 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 6

Theory 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:

 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 results in ever-
increasing 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:

 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 seek 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 also 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 efficient 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 motivation 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
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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
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:

 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.

 Job Enlargement –

Broadening the scope of an employee's job adds variety and

opportunities to satisfy ego needs.

 Participative Management –

Consulting employees in the decision making process taps their

creative capacity and provides them with some control over their
work environment.

 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 needs
through their jobs. According to these considers Theory Y is the most effective
theory for Nothern industry.

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Question 7
Refer to the Sales Manager and Shipping/Receiving Manager’s 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 scarce 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 Merit Possible Evidence Feed back

M1 – Identify and apply strategies to find  Effective judgments have been

appropriate solutions
M2 – Select /design and apply appropriate
methods / techniques
M3 – Present and communicate appropriate
findings
Distinction Descriptors
D1 – Use critical reflection to evaluates own
work and justify valid conclusions
D2 – Take responsibility for managing and
organizing activities
D3 – Demonstrate convergent / lateral /
creative thinking
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
Indicative Characteristics
Feedback
 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

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