CRITICAL THINKING CASE

NORTHERN INDUSTRIES
Northern Industries has asked you to help it resolve some racial issues that, according to president Jim Fishers, are ³ festering ³ 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 p roblems. He says that one of these problems is that ³ each of the minority groups sticks together. The African ± Americans and Orientals rarely mix. ³ another recent problem has been ³ 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 ³self 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 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 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 µs 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 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.
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.
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 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 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 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 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 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 training
y

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 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.

y

y

y

y

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 rejectio n 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 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 ³fake 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, ³Your 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, ³You can¶t 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 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, ³I 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, ³It¶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. 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 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:
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
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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 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 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 Merit
M1 ± 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

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M2 ± Select /design and apply appropriate methods / techniques 

 

M3 ± Present and appropriate findings

communicate 

 

Distinction Descriptors
D1 ± 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

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D2 ± Take responsibility for managing and organizing activities

D3 ± Demonstrate convergent / lateral / creative thinking

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