Question # 1: Commodity Based Products Are Mass-Produced Products That Deliver
Question # 1: Commodity Based Products Are Mass-Produced Products That Deliver
Describe Management In A New Perspective (E.g. Management Means Being In Changer). A NEW PERSPECTIVE OF OPERATIONS MANAGEMENT 1. The Productivity Frontier
Question # 1
Porters (1985) productivity frontier (the sum of all practices at any given time that enable an organization to meet specific value/ cost requirements) is a useful approach if we wish to identify specific value based opportunities and to make effective responses. A firm can improve its value proposition by increasing the non-price value delivered for relatively lower cost. Conversely, the value proposition can be decreased by lowering the non-price value delivered and by increasing costs. This second outcome will occur if a firm continually neglects customer needs. The usefulness of Porters productivity frontier can be extended by identifying value segments (that is, combinations of non-price/ price value combinations). As can be seen by the second diagram, these segments range from specialist one off products to commodity based products. A specialist one-off product is produced when a manufacturer produces a certain product that exactly meets the requirements of only one customer. A premium price is paid for the one-off, customized product. The manufacturer will organize their operations around delivering the maximum non-price value. Commodity based products are mass-produced products that deliver relatively low non-price value and charge an accordingly low price. This company intends to flood the market with its products so that they are profitable. The company will organize itself around delivering large volumes for low cost. Mass Customization is more or less a middle ground between the previous two extremes. Mass customization aims to select a few market segments that require some non-price value for an appropriate price. The company will organize itself around understanding the needs of the market segments it intends to serve and design its value proposition for each segment. With the emergence of new technologies, this kind of business design is becoming easier
to achieve. This is leading to consistent outward shifts in the productivity curve for a number of industries.
2.
Source: Walters (2002) The above diagram illustrates the productivity frontier with relevant marketing and operational implications
3.
Product Platforms
Product platforms are now widely used in manufacturing as a way to mass customize products. The process involves creating a universal product hub, which is known as the product platform. The components of the product platform are common throughout a number of products that the company manufactures. Then, newly constructed product platforms are sent to each sub product line to be further customized by adding new attributes to the platform. The finished products are then produced for the end user. The implications for this kind of technique are drastic reductions in costs through volume purchases, lesser need for multiple production facilities, easier customization of products and easier maintenance. For example, in car manufacturing, a number of components are universal to all cars. The parts that the customer wont notice, such as the gearbox, the engine, the drive train, the body etc. can be commonly used throughout a number of different lines with further customization performed at later stages throughout the production process. At Ford, they might have common gearboxes, engines, wheels, and steering mechanisms for the Fairland, the Falcon, and the Falcon Utility, however, as each product goes through the production process, they each are altered to become the final products.
4.
Source: Walters (2002) The above diagram summarizes the activities of the value chain.
5.
Competitive Advantage
Kay (1993) reasons that a companys competitive advantage can be judged by assessing the above ratio. Competitive advantage is determined by capabilities, and these vary. Kay (2000) identifies two categories: distinctive capabilities such as institutional sanctioned items; patents, copyrights, statutory monopolies, etc. but also feature powerful idiosyncratic characteristicsbuilt by companies in competitive markets. These are; strong brands, patterns of supplier and/ or customer relationships, specialist skills, knowledge and processes. Reproducible capabilities can be created (or purchased or leased) by any company with reasonable management skills, skills of observation and financial resources. Both process and product technology are reproducible.
6.
Kay (1993) introduces the concept of added value as the key measure of corporate success and defines it thus: Added value is the difference between the (comprehensively accounted) value of a firms output and the (comprehensively accounted) cost of the firms inputs. In this specific sense, adding value is both proper motivation of corporate activity and the measure of its achievement. Kay calculates added value by subtracting from the market value of an organizations output the cost of its inputs: Revenues - (Wages + Salaries + Materials + Capital Costs) = Added Value He suggests that added value is a measure of the loss, which would result to national income and the international economy if the organization ceased to exist: Adding value, in this sense, is the central purpose of business activity. A commercial organization which adds no value whose output is worth no more than the value of its inputs in alternative uses has no long-term rationale for existence. Added value in this context includes depreciation of capital assets and also provides for a reasonable return on invested capital. Calculated this way, added value is less than operating profit, the difference between the value of the output and the value of materials and labour inputs and capital costs. It also differs from the net output of the firm: the difference between the value of its sales and materials costs (no labour or capital costs). We have explored Kays measure of competitive advantage earlier. Kay then argues that the value created by the value chain is accrued throughout each stage of the value chain, based on the cost and revenue management by each value chain participant. The sum of the net value created by the value created by each participant is equal to the total value added for the end-user.
7.
Source: Walters (2002) The diagram above illustrates the recommended production processes for a given combination of volume and variety. This is a similar concept to Porters Productivity Frontier. Disconnected flow is otherwise known as one-off or jobbing and involves producing highly customized products for very few customers. Production facilities that are used for this kind of production are usually very specialized and are only converted to a different configuration with long lead times. A premium price is charged for the outputs of this kind of production process. disconnected line production involves producing products that are relatively customized. The production process involves setting up a number of production modules that produce some of the product, with the majority of the product still being customized. A premium price is often charged for this process as well, although more scope exists for price led competition. For example, a surfboard manufacturer uses the same equipment and inputs to produce surfboards, but each surfboard is customized to a riders specific requirements. Connected Line Flow production involves producing products that are mostly the same except for a small amount of customization. Using this process, most of the production line is standard, with only a small portion remaining for the purposes of customization. Price led competition is more predominant as a result of this form of production. For example, the larger car manufacturers use this form of production to produce large-volume cars that require little customization. Continuous flow production involves mass-producing large quantities of the same product. Production lines dont have any scope for customization and advantages are realized through economies of scale and asset usage intensity. Price led competition is the result of this kind of production process. For example, oil companies and other raw materials producers use this form of production.
9. Introducing the Notion of Distributed Assets to Value Led Operations Strategy Decisions
Source: Walters (2002) Depending on the competitive situation the company aims for, the ownership of the process and process infrastructure used to produce the value is an important consideration. The above diagram shows the recommended level of production process ownership, based on the intended value proposition and the production method itself. 100% ownership is recommended when the production process is a disconnected flow and the value proposition is based on exclusive customization. 100% ownership involves no outsourcing since all production is performed in-house.
Conversely, total outsourcing is recommended for a price determinant value proposition and a continuous flow production process. This is because no profit can be made in this situation without sufficient economies of scale or volume.
10. Process Management Extends Beyond Departments within Organizations to Include External Organizations
Question # 2
Describe The Managerial Skills You Need To Develop To Be An Effective Manager, And Suggest How You Can Achieve These Skills.
themselves, but they are only too happy to tell others where they went wrong, why they're doing it incorrectly, and why they could do the job better. Don't be this type of person. Chances are, you have more knowledge and experience in your field than a good many of the people you supervise. But that's why the company made you the boss! Your job is to guide and teach these people not to yell or nit-pick or show them how dumb they are compared to you. Mary Kay Ash, founder and director of Mary Kay Cosmetics, says that successful managers encourage their people instead of criticizing them. " Forget their mistakes," she advises, "and zero in on one small thing they do right. Praise them and they'll do more things right and discover talents and abilities they never realized they had."
Be Available
Have you ever been enthusiastic about a project, only to find yourself stuck, unable to continue, while you waited for someone higher up to check your work before giving the go ahead for the next phase? Few things dampen employee motivation more than management inattention. As a manager, you have a million things to worry about besides the report sitting in your mailbox, waiting for your approval. But to the person who wrote that report, each day's delay causes frustration, anger, worry, and insecurity. So, although you've got a lot to do, give your first attention to approving, reviewing, and okaying projects in progress. If employees stop by to ask a question or discuss a project, invite them to sit down for a few minutes. If
you're pressed for time, set up an appointment for later that day, and keep it. This will let your people know you are genuinely interested in them. And that's something they'll really appreciate.
But just as a salesperson wants to get to know his customer, you can benefit by showing a little personal interest in your people their problems, family life, health, and hobbies. This doesn't have to be insincere or overdone just the type of routine conversation that should naturally pass between people who work closely. If you've been ignoring your employees, get into the habit of taking a few minutes every week (or every day) to say "hello" and chat for a minute or two If an employee has a personal problem affecting his mood or performance, try to find out what it is and how you might help. Send a card or small gift on important occasions and holidays, such as a 10th anniversary with the firm or a birthday. Often, it is the little things we do for people (such as letting workers with long commutes leave early on a snowy day, or springing for dinner when overtime is required) that determine their loyally to you.
Be Open to Ideas
You may think the sign of a good manager is to have a department where everybody is busy at work on their assigned tasks. But if your people are merely "doing their jobs," they're only working at about half their potential. A truly productive department is one in which every employee is actively thinking of better, more efficient methods of working ways in which to produce a higher quality product. In less time, at lower cost. To get this kind of innovation from your people, you have to be receptive to new ideas; what's more, you have to encourage your people to produce new ideas. Incentives are one way you can offer a cash bonus, time off, a gift. But a more potent form of motivation is simply the employee's knowing that management does listen and does put employee suggestions and ideas to work. Quality Circles, used by Westinghouse and other major firms, are one way of putting this into action... The old standby, the suggestion box. is another time tested method. And when you listen to new ideas, be open minded. Don't shoot down a suggestion before you've heard it in full. Many of us are too quick, too eager, to show off our own experience and knowledge and say that something won't work because we've tried it before or we don't do it that way. Well, maybe you did try it before, but that doesn't mean it won't work now. And having done things a certain way in the past doesn't mean you've necessarily been doing them the best way. A good manager is open-minded and receptive to new ideas.
has opportunity for advancement, so that there is a logical progression up the ladder in terms of title, responsibility, status, and pay. If this isn't possible because your department is too small, perhaps that progression must inevitably lead to jobs outside the department. If so, don't hold people back; instead, encourage them to aim for these goals so that they will put forth their best efforts during all the years they are with you A manager's job is varied and complex. Managers need certain skills to perform the duties and activities associated with being a manager. What type of skills does a manager need? Research by Robert L. Katz found that managers needed three essential skills. These are technical skills, human skills and conceptual skills. Technical skills include knowledge of and proficiency in a certain specialized field, such as engineering, computers, financial and managerial accounting, or manufacturing. These skills are more important at lower levels of management since these managers are dealing directly with employees doing the organization's work. Human skills involve the ability to work well with other people both individually and in a group. Because managers deal directly with people, this skill is crucial! Managers with good human skills are able to get the best out of their people. They know how to communicate, motivate, lead, and inspire enthusiasm and trust. These skills are equally important at all levels of management. Finally conceptual skills are the skills managers must have to think and conceptualize about abstract and complex situations. Using these skills managers must be able to see the organization as a whole, understand the relationship among various subunits, and visualize how the organization fits into its broader environment. These skills are most important at top level management. A professional association of practicing managers, the American Management Association, has identified important skills for managers that encompass conceptual, communication, effectiveness, and interpersonal aspects. These are briefly described below: Conceptual Skills: Ability to use information to solve business problems, identification of opportunities for innovation, recognizing problem areas and implementing solutions, selecting critical information from masses of data, understanding the business uses of technology, understanding the organization's business model. Communication Skills: Ability to transform ideas into words and actions, credibility among colleagues, peers, and subordinates, listening and asking questions, presentation skills and spoken format, presentation skills; written and graphic formats Effectiveness Skills: Contributing to corporate mission/departmental objectives, customer focus, multitasking; working at multiple tasks at parallel, negotiating skills, project management, reviewing operations and implementing improvements, setting and maintaining performance standards internally and externally, setting priorities for attention and activity, time management.
Interpersonal Skills: Coaching and mentoring skills, diversity skills; working with diverse people and culture, networking within the organization, networking outside the organization, working in teams; cooperation and commitment. In today's demanding and dynamic workplace, employees who are invaluable to an organization must be willing to constantly upgrade their skills and take on extra work outside their own specific job areas. There is no doubt that skills will continue to be an important way of describing what a manager does.
Pick A Country Of Your Choice And Study Its Resources, Government, Political And Legal Systems And Physical Infrastructure. What Type of Business Would Thrive In Such A Country and Why?
Question # 3
regulators, hydrologists and attorneys. AWRA organizes conferences, publishes the peer-reviewed Journal of the American Water Resources Association (JAWRA), the Water Resources IMPACT magazine, and sponsors Technical Committees, State Sections and Student Chapters. AWRA has a seat on the Board of Governors of the World Water Council and participates in the triennial World Water Forum
European dark bees. Later Italian bees, Carnelian honey bees and Caucasian bees were added.
United States was established by the Constitution. Two parties, the Democratic Party and the Republican Party, have dominated American politics since the American Civil War, although other parties have also existed.
State government
States governments have the power to make laws on all subjects that are not granted to the federal government or denied to the states in the U.S. Constitution. These include education, family law, contract law, and most crimes. Unlike the federal government, which only has those powers granted to it in the Constitution, a state government has inherent powers allowing it to act unless limited by a provision of the state or national constitution.
Local government
There are 89,500 local governments, including 3,033 counties, 19,492 municipalities, 16,500 townships, 13,000 school districts, and 37,000 other special districts that deal with issues like fire protection.[1] To a greater extent than on the federal or state level, the local governments directly serve the needs of the people, providing everything from police and fire protection to sanitary codes, health regulations, education, public transportation, and housing.
The Commission. This combines both the legislative and executive functions
in one group of officials, usually three and more in number, elected city-wide. Each commissioner supervises the work of one or more city departments. One is named chairperson of the body and is often called the mayor, although his or her power is equivalent to that of the other commissioners.
Thousands of municipal jurisdictions are too small to qualify as city governments. These are chartered as towns and villages and deal with such strictly local needs as paving and lighting the streets, ensuring a water supply, providing police and fire protection and waste management. Note that in many states, the term "town" does not have any specific meaning; it is simply an informal term applied to populated places (both incorporated and unincorporated municipalities). Moreover, in some states, the term town is equivalent to how civil townships are used in other states.
Categories
The courts are one of the three coequal branches of the federal government, and include: General trial courts: United States district courts Courts with geographic-based appellate jurisdiction: The eleven numbered United States courts of appeals
Court of last resort: Supreme Court of the United States (which primarily has appellate jurisdiction but also has original jurisdiction over a very narrow range of cases) Courts with original jurisdiction over specific subject matter: United States bankruptcy courts United States Tax Court United States Court of Private Land Claims (1891-1904) United States Court of International Trade United States Court of Federal Claims United States Foreign Intelligence Surveillance Court Courts with appellate jurisdiction over specific subject matter: United States Court of Appeals for Veterans Claims United States Court of Appeals for the Armed Forces United States Court of Appeals for the Federal Circuit
While federal courts are generally created by the United States Congress under the constitutional power described in Article III, many of the specialized courts are created under the authority granted in Article I. Greater power is vested in Article III courts because they are independent of Congress, the President, and the political process.
Article III requires the establishment of a Supreme Court and permits the Congress to create other federal courts, and place limitations on their jurisdiction. In theory, Congress could eliminate the entire federal judiciary except for the Supreme Court, although the 1st Congress established a system of lower federal courts through the Judiciary Act of 1789.
Physical infrastructure in the United States Reservoirs and dams in the United States
The following is a partial list of reservoirs and dams in the United States. There are an estimated 75,000 dams in the United States, blocking 600,000 mi (970,000 km) of river or about 17% of rivers in the nation. Alamo Dam Coolidge Dam Davis Dam Bartlett Dam Glen Canyon Dam Lake Powell Gillespie Dam Hoover Dam Lake Mead Horse Mesa Dam
Horseshoe Dam Imperial Dam Laguna Diversion Dam Lyman Dam Mission Tailings Mormon Flat Dam Morels Dam New Cornelia Tailings, largest US dam by volume New Waddell Dam Painted Rock Dam Palo Verde Diversion Dam Parker Dam Several dams are part of the Salt River Project Stewart Mountain Dam Theodore Roosevelt Dam Salt River Project Waddell Dam Lake Pleasant
George Allen and Robert A. Gear heart who were instrumental in the creation of the Arcata Marsh. In 1969 Allen also started an aquaculture project at the marsh to raise simonies in mixtures of sea water and partially treated wastewater, a project that continues today. Despite being effectively a sewer, the series of open-air lakes do not smell, and are a popular destination for bird watching, cycling and jogging. View over southern end of Arcata Marsh. The sewage treatment process takes place in three stages: Sewage is held in sedimentation tanks where the sludge is removed and processed for use as fertilizer. Remaining wastewater is pumped into oxidation ponds (here bacteria break down the waste). About one month later water is put into artificial marshes where it is cleansed by reeds, cattails, and bacteria. Proposed roads in the United States
U.S. Route 121 is a proposed highway designated as the Coalfields Expressway, a four lane highway stretching from Beckley, West Virginia to Pound, Virginia, approximately 62 miles (100 km) in length. It is designed to connect Interstate 77/Interstate 64 in West Virginia near Beckley to U.S. Route 23 in Wise County, Virginia at Pound. While U.S. 121 will not connect directly to U.S. Route 21, it will intersect at the latter road's original alignment, now a part of I-77.
bring an unrivalled level of expertise to Regenesis. He has been a consultant for FPL Energy on the expansion of the 350 MW and new solar thermal electric plants, Kramer Junction and Harper Lake in California. In fact, the companys solar project managers average more than 20 years of industry experience, making them a valuable asset.
EXCITING FUTURE
Over the years, Regenesis has invested heavily in patented solar tracking technology in order to maximize performance and efficiency. Certainly, that technology is now in evidence in many of its solar projects across the U.S. and ensures that performance excellence remains at the heart of its operations. Although the companys workforce fluctuates with each project, recruitment is on the cards this year as Regenesis invests in its future. Energy Digital is not only backing Regenesis Solar Powers success for years to come, but that of the solar power industry too. After all, solar energy is the future to a sustainable way of living.
FACTS at a Glance:
Company Name: Regenesis Solar Power Headquarters: San Carlos, California Operations: Solar project development and solar program deployment experts Established: 2006
Gay bars
As The Orlando Sentinel noted in a recent article, around the country gay bars have been going out of business as gay men and women have been gaining greater acceptance in society. What used to be a hangout for people who felt unwelcome elsewhere is becoming less necessary. Odds of survival in 10 years: As with many industries, the very best of them will endure; the rest won't.
Piggy banks
You may chuckle, but as we continue gravitating toward a paperless society, it's not difficult to imagine a day when piggy banks no longer exist. Odds of survival in 10 years: Sure, they'll probably still be a few around in antique shops.
Financing a Startup
From seed capital to capital for expansion, getting financing is one of the most important parts to a startup. Making sure you can impress the venture capitalists and the angel investors takes preparation and practice. Use these resources to help your startup in getting financing.
Dotcoms
The steps to starting a dotcom have many similarities to starting a brick and mortar business, but there are numerous benefits and risks to starting an online business. These resources will help you to start and grow your dotcom as well as address business topics specific to dotcoms.
Intellectual Property
With high-growth startups, entrepreneurs want to make sure to have their ideas protected. In the early stages of business, the idea is the driving force. These resources can help you to protect your ideas and products.
Green Businesses
A growing number of startups view global environmental problems as business opportunities. Learn about the major profits to be made by those that develop solutions to them.
Explain In Detail The Different Types Of Decisions Managers Take At Different Levels In An Organization.
Decision making Decision making is about selecting a course of action between several alternatives. A trade off is the process of making a choice between alternatives. For example, a firm may have to decide between: Distributing or retaining profit Targeting domestic or overseas markets Locating production in the UK or third world Spending its promotion budget on advertising or direct sales One of the roles of managers is to make decisions. In large organizations directors and senior managers have to decide between competing objectives and alternative strategies. Junior managers decide between various tactics for example the best promotional mix. Decision making can be based on a hunch, careful or careless research of markets and competitors, or forecasts. In any case, decision making necessarily involve risk and uncertainty. Incomplete or inaccurate data, faulty assumptions, or unexpected future events, such as the credit crunch, means there is a risk a decision may not work out as expected or have unforeseen consequences. Research and planning can help reduce but cannot eliminate risk and uncertainty. This its why firms invest time and money in market research and swat analysis. One way of measuring the impact of a decision is opportunity cost. Every spent on marketing could have been invested in R&D, new equipment or extra staff. Opportunity cost is the best alternative sacrificed when making a decision i.e. the benefit foregone as a result of making a decision. Purposeful selection from among a set of alternatives in light of a given objective. Decision-making is not a separate function of management. In fact, decision-making is intertwined with the other functions, such as Planning, Coordinating, and Controlling. These functions all require that decisions be made. For example, at the outset, management must make a critical decision as to which of several strategies would be followed. Such a decision is often called a strategic decision because of its long-term impact on the organization. Also, managers must make scores of lesser decisions, tactical and operational, all of which are important to the organization's well-being. A decision is a choice made between 2 or more available alternatives. Decision Making is the process of choosing the best alternative for reaching objectives.
Question # 4
Managers make decisions affecting the organization daily and communicate those decisions to other organizational members. Some decisions affect a large number of organization members, cost a great deal of money to Carry out, or have a long term effect on the organization. Such significant decisions can have a major impact, not only on the management systems itself, but on the career of the manager who makes them. Other decisions are fairly insignificant, affecting only a small member of organization members, costing little to carry out, and producing only a short term effect on the organization. PARTS OF DECISIONS: PROGRAMMED DECISIONS: Programmed decisions are routine and repetitive, and the organization typically develops specific ways to handle them. A programmed decision might involve determining how products will be arranged on the shelves of a supermarket. For this kind of routine, repetitive problem, standard arrangement decisions are typically made according to established management guidelines. NON PROGRAMMED DECISIONS: Non programmed decisions are typically one shot decisions that are usually less structured than programmed decision.
continuously before the full and final commitment. It uses both, the positive and negative feedback before selecting one particular course of action. Made in Stages Here the decisions are made in steps until the whole action is completed. It allows close monitoring of risks as one accumulates the evidence of out- comes and obstacles at every stage. It permits feedback and further discussion before the next stage of the decision is made. Cautious It allows time for contingencies and problems that may crop up later at the time of implementation. The decision-makers hedge their best of efforts to adopt the night course. It helps to limit the risks that are inherent to decision- making. Although this may also limit the final gains. It allows one to scale down those projects which look too risky in the first instance. Conditional Such types of decisions can be altered if certain foreseen circumstances arise. It is an either / or kind of decision with all options kept open. It prepares one to react if the competition makes a new move or if the game plan changes radically. It enables one to react quickly to the ever changing circumstances of competitive markets. Delayed Such decisions are put on hold till the decisionmakers feel that the time is right. A go-ahead is given only when required elements are in place. It prevents one from making a decision at the wrong time or before all the facts is known. It may, at times result into forgoing of opportunities in the market that needs fast action. BEING DECISIVE The ability to take timely, clear and firm decisions is an essential quality of leadership, but the type of decision needed varies according to the circumstances. Learning to recognize the implications of taking each type of different decisions leads to error minimization. BEING POSITIVE Taking decisive action does not mean making decisions on the spur of the moment. Although, it may be necessary in emergencies and also occasionally desirable for other reasons. A true leader approaches the decisions confidently, being aware of what must be taken into account and fully in command of the decisionmaking process.
MAKING FAST DECISIONS It is important to be able to assess whether a decision needs to be made quickly or it can wait. Good decision-makers often do make instant decisions but they then assess the long-term implications. Identifying Issues It is crucial to diagnose problems correctly. Before any decision is made identifying and defining the issue removes the criticality. This also means deciding who else needs to be involved in the issue, and analyzing what their involvement means. Prioritizing factors While making a decision, a manager needs to prioritize on important factors. Some factors in a process are more important than others. The use of Paretos rule of Vital few and trivial many helps in setting up of the priorities. Giving every factor affecting a decision equal weight makes sense only if every factor is equally important, the Pareto rule concentrates on the significant 20 percent and gives the less important 80 percent lower priority. Using advisers It is advisable to involve as many people as are needed in making a decision. In making collective decisions, specific expertise as well as experience of a person both can be used simultaneously. The decision-maker, having weighed the advice of experts and experienced hands, must then use authority to ensure that the final decision is seen through. Vetting decisions If one does not have the full autonomy to proceed, it is advisable to consult the relevant authority not just for the final go, but also for the input. It is always in the interest of the subordinate to have the plans vetted by a senior colleague whose judgment is trusted and is experienced. Even if there is no need to get the decision sanctioned, the top people are likely to lend their cooperation well if they have been kept fully informed all the way along the decision path. 5 ELEMENTS OF THE DECISION SITUATION: The Decision Makers Goals to be served Relevant Alternatives Ordering of Alternatives Choice of Alternatives DECISION MAKING PROCESS: Decision making steps this model depicts are as follows: Identify an existing problem
List possible alternatives for solving the problem Select the most beneficial of these alternatives. Implement the selected alternative. Gather feedback to find out if the implemented alternative is solving the identified problem.
IMPLEMENTING A DECISION
Decisions are valueless until they are translated into positive action, which in turn involves the decisionmaker in making a series of operational decisions and choices. 1. Making an action plan: A plan of action will begin to evolve naturally as options are narrowed and their feasibility is studied during the decision-making process. When developing a plan to implement a decision, everybody needs to fully understand the reason for that specific decision. An analysis of the overall task, determining what actions need to be taken and the manner in which the decision shall be implemented, should be provided in detail. 2. Delegating Action: Some decisions, which are simple, can be handled single handedly. But more complex decisions involve a number of tasks and the work of a team. Breaking each task into manageable chuks and delegating responsibility for planning to individuals within the team, makes the performance easier. The manager may delegate trivial matters to be decided by the subordinates, leaving more time for more important things. 3. Communicating a decision: Once a decision is taken and planned, it needs to be relayed to the colleagues who are directly or indirectly affected by it. The release of information if done properly, ensures that people understand exactly what has been decided and why, encouraging their support. While communicating the decision explanation of the alternative course of action and why a particular course has been adopted, removes doubts and objections from the mind of the concerned parties. 4. Discussing the progress of a decision Many meetings have no purpose but to diseases and inform. Meetings are specifically held to discuss progress in the implementation of a decision. Avoid wasting of time. While choosing a team for action the skills and personalities of the individual should be taken into account. 5. Overcoming objections: Decisions are likely to attract varying degrees of opposition, ranging from mild dissent to outright resistance. Rather than feeling aggrieved, opposition should be viewed as valuable part of decision-making. Even if there is a need
to push a decision through, simply ignoring objections or brushing them aside results into misunderstandings.
Question # 5
Planning And Control At Apple Computer Apple Computer Inc. Enjoyed A Phenomenal Early Success After It Was Founded In 1977 By Steve Wozmak, A Technical Expert, And Steve Jobs, The Marketing Genius. However, Success Did Not Last For Very Long, Partly Because Of the Introduction of the IBM Personal Computer. In The Early 1980s, In The View Of Some Observers, Apple Needed A Tighter Control And A More Professional Approach To Managing. John Scullery Was Lured From Pepsi Cola Company To Give Apple A New Direction. To bring the company under control, scullery employed cost-cutting measures to improve its profitability. At the same time, however, research and development expenditures were increased so that the company could remain a technological leader in the field. However, later he was accused of spending not enough on research and development and too much on advertising. The Firm Was Also Recognized To Reduce Duplication Of Efforts, To Lower The Break-Even Point, And To Reduce Friction Among The Departments. To Improve Its Effectiveness And Efficiency, Apple Introduced New Reporting Procedures. Furthermore, Considerable Efforts Were Made To Control The Inventory Level, Which Is A Serious Problem In The Personal Computer Industry. These Measures, Combined With A Successful Strategy And Helped By The Popularity Of Desktop Publishing, Resulted In An Increase Of Over 150 Percent In Earning In The 1986 Fiscal Year. 1. What Is The Relationship Between Planning And Controlling? 2. What Other Types Of Plan Can Be Used For Controlling The Organization? 3. Planning Is Looking Ahead And Controlling Is Looking Back. Comment.
4. The process of planning and controlling works on Systems Approach which is as follows: Planning
5.
Results
Corrective Action
Planning and controlling are integral parts of an organization as both are important for smooth running of an enterprise. 6. Planning and controlling reinforce each other. Each drives the other function of management. Example: British Airways (BA) is one of the worlds largest international airline operators. A BA flight takes off somewhere around the world, on average, every 90 seconds. The difficulties in planning a schedule which involves the world-wide resources of British Airways and ensuring that every flight leaves on time must be one of the most complex planning and control tasks in any operation. The BA headquarters at Heathrow Airport near London is its busiest hub. It is there that one will find a small, but vitally important department known as Operations Control, which handles the seven days prior to takeoff for long-haul flights, and the three days prior to take-off for short-haul flights. Initial flight schedules are produced up to two years in advance, and the route schedules are negotiated at a six-monthly global conference. The planning and scheduling group at BA will then manage the production of a flight timetable, taking account of the longer term implications of allocating certain aircraft types to each route. Any new routes or timings agreed are passed to Operations Control for comment on the practicalities of what is being proposed. Operations Control inherits this final flight schedule, and can only make minor changes in order to cope with unexpected situations arising during the period prior to take-off. It is responsible for co-ordination the three main resources required to provide the flight services, which are the schedule, the aircraft and the crew. They also are responsible for managing the knock-on effects of any delays, shortages or disruption to any of these inputs. The Operations Control team is in charge of every flight until it lands, when departments such as Engineering and Station Control can take over. This handover is illustrated in the figure. The performance of the Operations Control team is evaluated in terms of the regularity and subsequent punctuality of their flights. Regularity is defined as the percentage of flights actually taking off compared with the
number scheduled. Passengers need to have total confidence that their flight will actually operate, and current performance is almost 99 per cent (canceling a flight is the very last resort for Operations Control). Punctuality is the measure of the timing of the take-offs. BA sets an internal standard whereby a flight is considered late if it does not take off at the time defined in the schedule. Thus a flight can only be early, deadon-time, or late. Other component parts of the Operations Control Centre are the Emergency Procedures Information Centre (EPIC) and the Operations Control Intelligence Centre (OCIC) back-up centers. These are unmanned areas, set up to deal with certain types of incident at the press of a button. The staff who would operate the centers are nominated, and are well trained in advance, even down to having simulated exercises on a regular basis. The EPIC centre is activated should BA, or any other contracted airline (there are over 60 subscribers to the service) be involved in an accident or serious incident, and it acts as a contact point for the public, and as a focal point for information regarding those on board. The OCIC centre is used only when a serious global incident, such as war, is affecting the entire BA business. Again, the centre is manned by specially trained staff and headed by a BA board director. The team will then be on 24-hour action stations until the crisis has been resolved. These two crisis centers have become well known, and EPIC is frequently used by other organizations. The strategy of having independent crisis centers means that the dayto-day business units do not have to cater for every eventuality. They continue to work in the knowledge that an emergency situation will not be their responsibility, and they can thus focus more efficiently on the core operation. Conclusion: In the present dynamic environment which affects the organization, the strong relationship between the two is very critical and important. In the present day environment, it is quite likely that planning fails due to some unforeseen events. There controlling comes to the rescue. Once controlling is done effectively, it gives us stimulus to make better plans. Therefore, planning and controlling are inseparable functions of a business enterprise.
Planning: looking ahead to chart the best courses of future action. Strategic planning: Long range planning to set organizational goals,
objectives, and policies to determine strategies, tactics, and programs for achieving them. Top management makes strategic plans. Middle Management makes annual plans (to implement the above). For supervisors the planning period is usually a week, day, or shift ( to deal with daily work).
Forecasting
Forecasting: Predicting future needs on the basis of historical data, present conditions, and assured future. Forecasting controls staffing, purchasing, and production decisions. Forecasting is a very important function!
Minimizes the degree of risks. Is specific as to time, place, supplies, tools, etc. Is flexible (can be adapted to a change in the situation).
Day-by-Day Planning
Top priority of the first line supervisor. Primary concern is what is to be done, who will be doing it, and adjusting various standing plans. Plan before the day begins. Establish routines simplify planning. Whenever possible reduce risks by increasing predictability.
Workers respond to change through: resistance, insecurity, anxiety, resentment of personal losses, and rumors. How to deal with resistance to change: Establish open communication Emphasize advantages (avoid overselling) Involve the workers in planning and carrying out change
Organizing
Lack of organization is a major contributor to crisis. A well-organized and efficient unit is one in which: Lines of authority and responsibility are clearly drawnand observed. Jobs, procedures, and standards are clearly definedand followed. People know what to do and how to do itand they do it. Standards of quality, quantity, and performance are clearly set and met.
Planning is required at the very outset of management whereas control is required at the last stages. If planning is looking ahead, control is looking back.
Control and planning are interrelated so closely that they cannot be separated from each other. Without control all the planning is fruitless because control consists of the steps taken to ensure that the performance of the organization conforms to the plans. In other words control is concerned with the actual performance in relation to the standards set in advance and the correction of deviations to ensure attainment of objectives. Planning is required at the very outset of management whereas control is required at the last stages. If planning is looking ahead, control is looking back. In fact, control is the process of checking to determine whether or not proper progress is being made towards the objectives and goals set by management while doing planning. Often it is said that planning is the basis, action is the essence, delegation is the key, information is the guide and control is the lifeblood of the success of any business enterprise. Organizational objectives cannot be achieved without planning and planning alone cannot be successful. If extra efforts are put in planning and control is ignored, a business may suffer from a number of administrative problems. These difficulties may be highly detrimental for the business in the long run. Effective control through efficient superiors can only be a guarantee for success. The control system must be appropriate to the needs and circumstances of the enterprise. Control is a fundamental management function that ensures work accomplishment according to plans. The purpose of control is to ensure that everything in an organization occurs in conformity with predetermined plans. Control also ensures that there is no kind of indiscipline and incompetence in the organization and employees are not able to put undue pressure on the management. Some people are not in favor of control because they feel that control is always used against the employees. They advocate automatic control rather than forced one. But a balanced viewpoint is that both the management and the employees should be put under some kind of control. Control should be engrained in the basic policies of any type of business organization.