DB response

DB response 2 Cindy

Question 1

One of the goals of mass customization is customer satisfaction. Organizations provide customers the ability to order products which are unique to their needs (Daft, 2016). This approach is considered lean manufacturing which was founded by Ford and then later Toyota adopted to regulate the production process efficiently (Ghobakhloo, Fathi, Fontes, & Ching, 2018). The main purpose of this process is to evaluate current systems “through a set of synergistic work practices” enabling a reduction in cost while at the same time providing products and services “on demand” (Ghobakhloo, Fathi, Fontes, & Ching, 2018).

The lean process has been very successful for the manufacturing company but can also be used by a service firm. Since service industries also focus on customer satisfaction, this can be applied especially in reducing waste and continuously improving processes (Cudney & Elrod, 2011). Toyota used lean to improve manufacturing which included improving “the flow of information and material” (Cudney & Elrod, 2011). This can be applied to the service organization by evaluating the costs associated with “unnecessary delays, tasks, costs and errors” (Cudney & Elrod, 2011).

The main idea is to evaluate wastes to determine how to eliminate them. This includes “seven wastes of lean which are overproduction, transportation, inventory, processing, waiting, motion, and defects” (Cudney & Elrod, 2011). This can be applied to certain departments within the service industry including “procurement, invoicing, order entry, accounting and sales” (Cudney & Elrod, 2011). The task should be in how to improve current processes with the intent of providing a better service to the customer. A service is a direct result of a “request from the customer” whereas a product can be manufactured and then sold at a later date (Daft, 2016). The service will be mostly employees who must have expertise in the type of service provided (Daft, 2016). For customizing a service firm, the level of customer satisfaction is in direct relation to the “quality of service perceived” (Daft, 2016).

Question 2

It is interesting to consider management as a craft technology which is being interpreted that this is only learned through experience. Experience is fundamental especially within an organization. Managers must evaluate internal processes including employees to determine the best strategy especially with ensuring customer satisfaction. Further, management also should understand the importance of building a learning atmosphere that includes creativity and knowledge-sharing (Daft, 2016). With this in mind, it would be almost impossible to implement if management was not also learning and seeking new innovation.

As with all professions, it is necessary to have learned skills specifically through education. For example, if a surgeon only learned through experience, would this be beneficial to the patient. There is more to management than managing employees. A manager should have a clear understanding of planning and goal-setting (Durant, Carlon, & Downs, 2016). This is imperative for employee satisfaction that will directly affect customer satisfaction.

Chapter 8

Question 1

Just as organizations must continue to evaluate the environment to ensure profitability, management must determine if the current management style is feasible. With the increase in social media, businesses are now encouraging “social business” which empowers employees to collaborate easily with other employees and customers (Daft, 2016). This also provides managers with better resources for communicating with employees.

Even with the rapid growth of technology, high-level managers may continue to communicate with employees although this may be through technology rather than face-to-face. There are two types of controls management may use within an organization which can be used simultaneously but typically one or the other is used depending on the manager (Daft, 2016). The hierarchical control is more of the traditional with management initiating “rules, policies, hierarchy of authority, written documentation, reward systems, and other mechanisms” to develop employee performance (Daft, 2016). Decentralized control relies on employees in allowing them to collaborate together specifically based on “cultural values, traditions, shared beliefs, and trust to foster compliance with organizational goals” (Daft, 2016).

High-level managers in either situation may rely heavily on operational managers to determine which type of control is necessary. With the decentralized control, high-level management may have little communication with employees as department managers may adhere to the “flexible authority style” enabling employees to take part in the day to day operations specifically with “monitoring quality” (Daft, 2016).

Chapter 9

Question 1

One organization that has decided to change its current structure is Tesla. In an attempt to reduce the cost of the company’s cheapest model, a decision was made to close the majority of its stores and transition to “online only” (Meyer, 2019). The company then decided to keep more stores open and raising the price of other models to cover the cost (Meyer, 2019). The stores will have fewer employees and offer assistance to customers in purchasing a Tesla online (Meyer, 2019). Elon Musk, Tesla CEO, had plans to reduce the price of model 3 enabling the company to introduce Tesla in new markets “worldwide” (Levingston, 2019). Due to reduced sales and slow delivery, the company had to react with possible layoffs and slowing the plan to offer more cars at lower prices (Levingston, 2019). Reducing the number of stores enabling customers to order a vehicle online allows the company to expand in other areas. It seems this will be hard at first but the intention is to offer better service and lower prices which leads to customer satisfaction.

Another company that is considered a great place to work by most of its employees is Pariveda Solutions. The company promotes transparency among all employees including salary levels with easy access to this information (Frauenheim, 2019). The company uses Holacracy which is removing “management, the organizational chart and subordinates” and replacing this with a type of control that allows employees to work in “self-managed teams” and “to act freely within specified zones of authority” (Frauenheim, 2019). In reviewing the companies core values, the first on the list is integrity which encourages “high ethical standards” (Pariveda, 2019). This is providing clear expectations for employees and their work ethic.

Question 2

There are a number of definitions for growth. The Oxford Dictionary includes “the process of increasing in amount, value or importance” (Oxford Dictionary, 2019). The opposite of growth is to be stagnate (Daft, 2016). Growth within an organization does not just mean in size. All organizations should evaluate how to improve by setting goals and establishing new strategy. This is a type of growth specifically in value. For business schools to provide a no-growth philosophy for management may need to be refined. There are multiple examples showing how some organizations have thrived by growing bigger and others have focused on improving rather than growth (Daft, 2016).

If managers are taught that an organization should not grow, then this would not always fit with certain organizations. An organization may need to grow to keep up with the competition (Daft, 2016). An organization that grows to become a leader in the market will reap the benefits and the employees will most likely be provided opportunities to grow with the organization (Daft, 2016). In contrast, a small company also has benefits including “free-flowing management style that encourages entrepreneurship and innovation” (Daft, 2016). The best option for a business school is to provide information for both the large organization and small business allowing managers to determine which type is best for them.

Biblical Worldview

A verse that is relevant in the situation with management growing the business with the intention of maximizing profits is Hebrews 13:5 which encourages us to avoid loving money and to be content with what we are given. Those who are not satisfied with what has been provided may continuously seek after more. This is good advice for those who own a small business and want to grow just to increase profit.

References Cudney, E., & Elrod, C. (2011). A comparative analysis of integrating lean concepts into supply chain management in manufacturing and service industries. International Journal of Lean Six Sigma, 2(1), pp.5-22. Retrieved from https://doi-org.ezproxy.liberty.edu/10.1108/20401461111119422 Daft, R. L. (2016). Organization theory & design. Boston: Cengage Learning. Durant, R. A., Carlon, D. M., & Downs, A. (2016). The efficiency challenge: creating a transformative learning experience in a principles of management course. Journal of Management Education, 41(6), pp. 852-872. Retrieved from https://doi-org.ezproxy.liberty.edu/10.1177/1052562916682789 Frauenheim, E. (2019, March 19). These companies are the best workplaces in Texas. Fortune. Retrieved from http://fortune.com/2019/03/19/these-companies-are-the-best-workplaces-in-texas/ Ghobakhloo, M., Fathi, M., Fontes, D. B., & Ching, N. T. (2018). Modeling lean manufacturing success. Journal of Modelling in Management,13(4), pp. 908-931. Retrieved from https://doi-org.ezproxy.liberty.edu/10.1108/JM2-03-2017-0025 Levingston, I. (2019, April 4). Elon Musk's plan to boost tesla sales is dealt a setback. Fortune. Retrieved from http://fortune.com/2019/04/04/elon-musk-tesla-q1/ Meyer, D. (2019, March 11). Tesla to raise prices and reduce store closures in latest strategy switch. Fortune. Retrieved from http://fortune.com/2019/03/11/tesla-price-rise-retail-stores/ Oxford Dictionary. (2019). Retrieved from https://en.oxforddictionaries.com/definition/growth Pariveda. (2019). Mission & core values. Pariveda. Retrieved from https://www.parivedasolutions.com/about-home-page/mission-and-core-values