Chapter 5 Think Critically

Changing the Face of Manufacturing

Changing the Face of Manufacturing

You can’t make a mistake when building airplane engines. The jet engines produced by the
General Electric Aircraft Engines plant in Durham, North Carolina, have more than 10,000
parts. When completely assembled, they weigh more than eight tons. Yet a bolt not
tightened, a tool left inside the engine, or a safety procedure not followed can cost hundreds
of lives. GE has used a team approach for over 20 years to produce jet engines.

Approximately 200 people assemble the huge engines. But there is only one boss, the plant
manager, and one instruction to guide the work of the plant—the date each engine needs to
be finished. Beyond that instruction, employees make every decision about how the work
will be completed. They hold a record for delivering every engine ordered on schedule for
over three years. During that time, they were able to reduce the cost of producing the
engine by nearly one-third.

How was this GE plant able to achieve its amazing record with only one manager? Here are
some unique characteristics of the organization:

 Employees are organized into work teams that make almost all decisions. Everyone
is on a team, and team meetings are scheduled when all employees are available.

 Work schedules are flexible. Team members can easily adjust their work hours by
trading weekday and weekend shifts as needed to meet production schedules,
without adding overtime hours.

 Everyone learns how to do many of the assembly tasks so they can help each other.

 Teams are responsible for hiring new team members. Team representatives do the
interviewing, and they have to agree on the right person.

 Teams solve problems and often come up with unique but simple solutions. They
use consensus building to make a decision, and the team supports it going forward.

 GE allows the team to reorganize as needed to meet changing conditions and

requirements.

The team environment in Durham works. The plant has the lowest turnover rate and lowest
production costs of any of General Electric’s engine assembly plants. Its unique
organization demonstrates that when employees are given the opportunity to work together
to manage their work, they do it better than anyone could have imagined.
Think Critically

1. How do you believe the flexible work schedules affect employee motivation? What
are the advantages and disadvantages of that plan?

2. Discuss reasons why the team problem-solving process seems to result in unique
but effective solutions. Are there reasons a solution developed by employees is likely
to be more successful than if the same solution was developed by a manager
without the input of employees?

Apply What You Know

Answer the following questions.

17. Based on the Reality Check scenario at the beginning of the chapter, do you believe
most of the problems were the result of poor planning, staffing, or leading. Justify
your answer.
18. Why are businesses paying much more attention to developing effective work teams
today than in the past?
19. What differences in leading and controlling activities, if any, would there be for a
manager of a small business and a manager in a large business?
20. What should a manager do if it is clear that many employees will view a planned
change negatively?
21. What are some examples of business activities where perfection is the only
acceptable standard for performance?
22. Should managers delegate controlling activities to employees and employee teams?
Why or why not?
Technology Form a team with three or four other students in your class to analyze
motivation theories. As a team, develop a list of at least 15 things you believe motivate
employees to perform well. After completing the list, prepare diagrams using a computer
graphics program that illustrate each of the three motivation theories discussed in the
chapter. Then add your team’s motivators in the appropriate locations on each of the three
illustrations. Present your diagrams to the other teams and provide reasons for your
decisions about the motivators and the theories.
Research Use the Internet to gather information about the growing problem of identity theft.
Identify five specific actions individuals can take to prevent identify theft and five steps businesses
can take to protect personal information of their customers. Use a computer and presentation
software to report your findings. Make sure to reference the sources of your information