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Management and Organization Behavior. Organization Agility. Responsiveness – Organization and Personal. Changing job responsibilities Advice & info – not orders Decentralized decision making Brainpower (expertise) Judgment not rules (X-preprogrammed) Organization, not leader, commitment
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Management and Organization Behavior Organization Agility
Responsiveness – Organization and Personal • Changing job responsibilities • Advice & info – not orders • Decentralized decision making • Brainpower (expertise) • Judgment not rules (X-preprogrammed) • Organization, not leader, commitment • Employee interaction • Organic not mechanistic
Core Competencies • Key to strategy • Strengths that build competitive advantage • Strengths to focus on vs. dabble in
Organizing around Core Competencies • Accumulate/strengthen (identify) • Combine • Seek opportunities (leverage) • Strategic alliances – to cover your needs
Learning Organizations • Decisions based on facts and details • Organization values knowledge expansion by employees • Reviews best practices (successes) and learnings (failures) • Benchmarking (goals and copying) • Communications/sharing (information)
Big More mechanistic Economies of scale Economies of scope Small More organic Customer focused Lower overhead Big vs. Small Organizations
Economies of Scale Examples • Automotive options • Clairol
Downsizing • Why? • Competitiveness • How? • Last resort • Train people • Protect talent • Help those who have lost jobs • Communicate the process • Identify future organization and functioning • “Rightsizing” • Restructuring
Customer Relationship Management - CRM • High tech • High touch
Primary (Line) R & D Inbound logistics Operations Outbound logistics Marketing & Sales Service Support (Staff) Firm infrastructure (accounting/finance/ legal/misc.) Human Resources Technology (internal) Procurement (not inbound logistics) Value Chain (Michael Porter)
Total Quality Management (TQM) • W. Edwards Deming • Just after WWII • Now goes by other names as well…
TQM – Four Principles of TQ • Meet the requirements • Error free work • Manage my prevention • Measure by the cost of quality
TQM – The 10 actions of TQ • Commitment • Teams • Education • Measure/Display • Cost of Quality • Communication • Corrective Action • Recognition • Event • Goals
Malcolm Baldrige Award • The best companies had the most complaints – why?
ISO 9000 • International standard • Sets no specifics • Requires documentation for processes • Specific jobs • Quality procedures • Training • Operations • Complaints • Insures consistency
Six Sigma • Goal – Six Sigma • Statistically based Procedure- Identify the situation Find the root cause Make a change Analyze the results Fix the results or redo Eliminates “Fixing something other than the problem”
Reengineering • Mike Hammer • Eliminates “hand-offs” • That “insure” quality • That “CYA” • That insure jobs -- but build in quality and efficiency problems • Improves speed, reduces time • May reduce costs/people
Time Based Competition • JIT • Zero inventory/lean manufacturing • Demand flow & Toyota production system • Supply chain management • Why? • Speed and ROI
Keys to JIT • Eliminate waste (time and inventory) • Quality • Reduced cycle times • Employee involvement • Value added functions • Prevent problems
More on JIT • Kan Ban • Demand Flow
Simultaneous Engineering • CAD-CAM (together = CIM) • Flexible machining centers/factories • Dedicated machinery • Simultaneous Engineering