Management

Production System
Untuk menghasilkan produknya,
Design perusahan melakukan
Untuk memastikan sistem
Human Resources
produksi berjalan dengan
baik dibutuhkan Manusia adalah bagian dari sistem
dan merupakan pihak yang
Production System menjalankan fungsi perusahaan,
Control perusahaan harus mengelola

Productivity Keputusan dalam perusahaan

Management diperoleh dengan

Perusahaan/
Setiap proses harus dapat Decision Sciences
menghasilkan hasil yang Organisasi
diharapkan dengan memanfaatkan
sumberdaya yang dimiliki. Hal ini salah satunya adalah
membutuhkan adalah suatu Operations
Untuk memastikan kualitas
Research
produk dan proses, perusahaan
System Setiap aktifitas direncanakan,
membutuhkan dilaksanakan, dimonitor,
dan dievaluasi, ini disebut
Total Quality
Management Management
Introduction

“We have met the enemy, and he is us”

Pogo (Walt Kelly)

1] Design, 2] Control, 3] Management represent an

essential triad of interest in any comprehensive effort
in improve operations.
Introduction
To be truly effective, all of the following must
simultaneously be in place :
A physical production system with the capability of being
fully productive (Production system design)
Optimal procedures for providing operational control of
the physical production system (Production system control)
A management system fully capable of providing
effective management
Industrial engineersof have
physical,
not control, human,
typically borne& all
other resourcesfor
responsibility of the
the operation
design of(production
management systems
system
management)
Introduction
Management theory has always resided in the
domain of management, not engineering.

However, for 2 compelling reasons, industrial

engineers have become increasingly involved in
management in recent years.
Introduction
First reason, altough management system is one of
three legs of the triad, it is typically the single
Industrial determinant
greatest engineers areofbecoming increasingly
the success or failure more
of
involved in system
production assisting
oninathe development
day-to-day of effective
basis.
management systems to ensure that the production
systems &
Second controlsuniversal
reason, they design will be implemented
aggrement that in
management ismanagement environment
the most apparent problem with
industry.
Japanese vs United State company
Management
Management Based on Behaviorist
Theory
[1] Abraham Maslow

Initiated with the publication in 1954 of Abraham

H. Maslow’s text Motivation & Personality.

People were seen to be far more complex in terms

of their needs, & therefore their motivations, than
had earlier been fully appreciated.
[1] Abraham Maslow

Prior to Maslow, managers typically assumed that a

$0.05 per hour increase in pay could solve just about
any employee problem;
They often appeared surprised when it did not.

The behaviorist theory that developed from Maslow’s

research then treats human motivations as the
singular determinant of productive accomplishment.
Maslow's hierarchy of needs
“The more basic needs
at the bottom”
Applying Maslow’s Theory to Management

At the lowest level, workers are motivated by basic needs,

such as the needs for wages or salary.
Basic needs also include the physical conditions in which a
person works, such as heating, lighting, and noise.
Once these basic needs are met, employers can address
the next level of needs—safety or security needs.
Some of these security needs can be met by providing
employees with insurance, retirement benefits, and job security.
Employees need to know that in the workplace, they are safe
from physical, psychological, or financial harm.
Applying Maslow’s Theory to Management

Managers meet workers’ social needs by providing work

environments in which colleagues interact
by providing opportunities for co-workers to socialize with one
another by providing lunch rooms or allowing employees to
attend company retreats.
Status needs can be met by providing employees with
signs of recognition that are visible to others
such as job titles, awards, designated parking spaces, and
promotions.
Managers can meet employees’ need for self-fulfillment
by providing them with opportunities to be creative at work or
allow them to become involved in decision making.
[2] Rensis Likert

Rensis Likert (Director of the institute for social research at the

University of Michigan) principle of supportive relationships was
offered as a general principle that “high-producing managers
seem to be using”

The leadership & the other process of the organization must be

such as to ensure :
a maximum probability that in all interactions & all relationships with
the organization each member will, in the light of his background,
values, & expectations, view the experience as supportive & one
which builds & maintains his sense of personal worth & importance.
[3] Herzbeg, Mausner & Snyderman

This principle obviously builds on the theory offered

by Maslow in highlighting the need for management to
be sensitive to employees’ personal needs.
Maslow clearly indicated: personal needs go well beyond pay.

Frederick Herzberg, Bernard Mausner & Barbara

Snyderman published The motivation to Work, which
dealt with the relationship between job attitudes &
productivity.
[3] Herzbeg, Mausner & Snyderman

One of the hypotheses that Herzberg, Mausner &

Snyderman formed, based on their result, was that
any single job attitude factors tends to serve
predominantly as either a satisfier or dissatisfier.

The motivations-hygiene theory they developed

equates job satisfaction factors to motivations
factor & dissatisfaction factors to hygene or
maintanance factors.
[4] Douglas McGregor

In 1960 Douglas McGregor, probably the most

influential behaviorist to date, published The Human
Side of Enterprise, which compared 2 different
approaches to management: Theory X & Theory Y.

These theories describe 2 contrasting models of

workforce motivation applied by managers
In human resource management, organizational
behavior, organizational communication & organizational
development.
[4] Douglas McGregor

According to the models, the 2 opposing sets of

general assumptions of how workers are motivated
form the basis for two different managerial styles.

Theory X stresses the importance of strict supervision,

external rewards, and penalties: in contrast, Theory Y
highlights the motivating role of job satisfaction and
encourages workers to approach tasks without direct
supervision.
Theory X
Theory X—assumes that people are basically lazy
and will avoid working if they can.

To make sure that employees work, Theory X

managers impose strict rules and make sure that all
important decisions are made only by them.
Theory Y
Theory Y assumes that people find satisfaction in
their work.

Theory Y managers believe that people are creative

and will come up with good ideas if encouraged to
do so.

They tend to give their employees much more

freedom and let them make mistakes.
Behaviorst Theory
There is a common belief today that a participative
style of management will typically be more effective in
motivating employees than an authoritative approach.

Whereas Maslow, Herzbeg, & Mcgregor seem to

offer self – actualization at work as universal desire
& goal of all employees at all levels, Fein
questions its universality.
[5] Mitchell Fein

Mitchell Fein – Motivation for Work : Do all

employees search for fullfiment in their work? Fein
States :
Fulfillmet through their work is found only for those workers
who choose to find fulfillment through their work.
In my opinion, this includes about 15% to 20% of the
blue-collar workforce.
These behaviorists’ concepts have little meaning for the
others. The majority of workers seek fulfillment outside
their work.
[5] Mitchell Fein

Fein also questioned another relatively universal &

cherished assumption of the behaviorists’ theory
concering job enrichment – that the opportunity for
significant enrichment generally exists :
Managers know
Manufacturing from experience
managers, that joborenrichment
plant managers CEO – self is
possible only for some jobs.
actualization
What seems to & bejob enrichment
important to aspects of their work.
most employees is job
Few jobs can be altered to include the vertical
security,
There peerresponsibilities
contact
is a considerable
enlargement & acceptance,
amount of work toby
suggested reasonable
beHerzbeg.
performed
“Not allworking
in industry that canconditions,
jobs does be requiresafety,
notenriched, & pay.
imagination,
nor do all jobsjust a pair
need to
enriched” of hands.
[6] William Ouchi

In 1981, William Ouchi published book Theory Z :

How American Business Can meet the Japanese
Challange.

Ouchi describes an experiment he performed in which

he listed 7 characteristics of the Japanese type of
managers & then asked a number of American
executives to list Americans firms that had managers
with those characteristics.
 Japanese Type Organizations

1. Lifetime employment
2. Collective decision making
3. Collective responsibility
4. Slow evaluation and promotion
5. Implicit (understood, implied) control mechanisms
6. Non-specialized career path
7. Holistic concern for employee as a person
 American Type Organizations

1. Short-term employment
2. Individual decision–making
3. Individual responsibility
4. Rapid evaluation and promotion
5. Explicit (clear, precise, unambiguous) control
mechanisms
6. Specialized career path
7. Segmented concern for employee as an employee.
[6] William Ouchi

Ouchi found that managers of : IBM, P&G, HP, Eastman

Kodak, the US Military; thought to be among the best
managed in the world were identified having same
characteristics as Japanese Companies.

Theory Z is a business management theory that

TypeJapanese
integrates Z firm : Japanese-style participative
and American business practices.
management
The Japanese&business
utilization of ad
emphasis hoccollective
is on teams to solve
decision
making spesific problem that develop
The American emphasis is on individual responsibility.
 Theory Z Type Organization
1. Long-term employment
2. Participative decision-making
3. Individual responsibility
4. Slow evaluation and promotion
5. Implicit, informal control with explicit, formalized
measures
6. Moderately specialized career path
7. Holistic concern, including family
[7] Blanchard & Johnson

Kenneth Blanchard & Spencer Johnson – The One

minute Manager suggested that neither managers
primarily interested in results nor managers primarily
interested in people were the answer.

“Effective managers manage themselves & the people

they work woth so that both organizations & the people
profit friom their presence”
[7] Blanchard & Johnson

Their “one minute goal setting”, “one minute

praising”.”one minute reprimand”, are all aimed at
providing psyhologically effective ways of motivating
people through positive reinforcement & information
feedback.
[8] Pascale & Athos

Richard Pascale & Anthony Athos published The Art of

Japanese Management.
Much of their text praises the Matsushita Corporation (The
largest electronic company in the world)

[Matsushita & Takashashi] exhibit an approach to

management that involves its getting into the factory,
into the field, & out with the customers. Matsushita
executives are noted for spending less time in their
office.
[8] Pascale & Athos

Praise & positive reinforcement are an important part

of the Matsushita philosophy.
Matsushita, interweaving human values with hard-edged
efficiency, has created an organization of astonishing
resilience & vitality.

The prime qualification of a Japanese leader is his

acceptance by the group, & only part of that
acceptance is founded on his proffesional merits.
The group harmony & spirit are the main courses.
[8] Pascale & Athos

In the west, work group leaders tend to emphasize

task & often neglect group maintanance activities.

The suspicion is that not only does Matsushita have

excellent management but that they have also
developed & supported one of the premiere industrial &
manufacturing engineering capabilities in the world.
[8] Pascale & Athos

Matsushita has consistently invested 5% of sales in

R&D, of which the major portion goes to Production
Engineering.

The behaviorist approach offers little emphaty for

control systems.
There are a great number of Japanese firm that are
remarkably close to the American model – Matsushita,
YKK, Sony, & Honda. Their control system are very tight.
[9] Peter & Waterman

A highly focused managerial information system [at

Matsushita] reports on a dozen key indicators of
divisional performance on a monthly basis.
One important ingridient of the Matsushita management
system is discipline.

Thomas Peters & Robert Waterman indicate attention

to employee has the dominant impact on productivity.
A motivated workforce is one essential factor but it is only
one of many.
[9] Peter & Waterman

Peter & Waterman offer some very worthy advice to

those in American management responsible for
corporate vision & product conception.

Many of their concepts are very compatible with

Japanese management concepts regarding
employee.
Developing a respectful, open, honest relationship,
utilizing positive reinforcement & creating shared value.
[9] Peter & Waterman

3 of the last 5 new product introductions have come from a

classic skunk works.
It consists at any one time of 8 to 10 people & is located in a
dingy second floor loft six miles from the corporate headquarters.
The technical genius is a fellow whose highest degree is a high
school equivalency diploma earned in the Army in Korea. (the
company has literally thousands of Ph.D scientist & engineers on
its payroll)
One of the other members of the group was arrested for
sneaking into a manufacturing facility to which he had no
pass & swiping some material meeded to get on with an
experiment
[9] Peter & Waterman

Peter & Waterman state,” The old rationality is, in our

opinion, a direct descendent of Frederick Taylor’s school
of scientific managemenet & had ceased to be useful
discipline”

Highly motivated production workers are an essential

The most effective result will likely come from the
component,
effective utilization of industrial, manufacturing &
but they will never be an adequate substitute for industrial,
quality engineers in conjuction with the sum of
manufacturing & quality engineers in providing the production
contibutions
system designs &from allnecessary
controls employees
for anof the firm.
effective &
efficient operation.
Behaviorist Management Philosophy

Style of management : The underlying assumption

often implied in behaviorist management philosphy is
“If you are nice to them, they will be nice to you.”
Such a philosophy has its limitations, given human nature.

A management system based on hoping that

employee will produce if the manager is nice
enough is doomed to failure.
A Critique Behaviorist Philosophy

Dr. Lee (1980), sosiologist at Ohio University, “The

Gold & the Garbage in Management Theories &
Prescriptions”

The behavioral science literature concerning the

leading management theories, it is a timely &
exceptional work – Concering Maslow’s Theories.
Subjective plausability & lacks experimental verification
& support.
A Critique Behaviorist Philosophy

There is no proven general relationship between

productivity & satisfaction.

The original impetus pressing for research evidence that

job satisfaction coused variations in job performance was
likely the Hawthorne studies.

A change in mental attitude brought about by a friendly

relationship with supervisors caused job satisfaction which
in turn, caused the reported improved job performance.
A Critique Behaviorist Philosophy

Considerable group theory has been developed in

than past 40 years.

The theory is likely responsible for a common belief

today that “group work” is superior to “individual
work”
“But is there evidence to support such a conclusions?”

Groups do not necessary solve problems better nor

do they make better decisions than do individuals.
Organization Design

This function is concerned with analyzing the total

programs & activities of a company or enterprise &
determining the most effective arrangement of these
activities.

You cannot directly supervise each individual

employee.
Similarly, you cannot make every decision pertaining to
purchasing, schedulling, marketing, inventory
management, facilities layout, & so forth.