Question 1 to 10 on: Supply chain assignment

1. Basket Maker uses phone surveys to gather customer feedback aboutservice and quality. This is an example of the management functionof organizing.
2. Paul Chan is the President of WV Railroad. His organization facesissues related to the environment, government regulation, andcompetition. He will need to rely primarily on his Technical skills.
3. Which of the following is not an example of a constituency thatmakes up the specific environment? Suppliers
4. Which of these is a major criticism of scientific management?
   D It ignored the social context of work.
5. Bierderlack has a policy stating that more than three absences in asix-month period shall result in a suspension. Erin, the manager, hasjust decided to suspend one of her shift employees for violating thispolicy. This is an example of a programmed decision.
6. Kari is a manager at MySize Clothing. Her job is very complex andshe feels that she does not have enough time to identify and/orprocess all the information she needs to make decisions. Kari’ssituation is most consistent with which of the following concepts? Scientific management
7. 7.      Which of the following is an example of a procedure?

Before going on a leave of absence, fill in the application formavailable on the company’s online leave management system. Allapplications will be approved/rejected within two days by theemployee’s immediate supervisor.

1. Sophie is in charge of recruitment at her company. During aparticular interview, the first thing Sophie noticed about the applicantwas that he was improperly attired. Though the candidate possessedthe necessary qualifications and effectively answered all herquestions, Sophie rejected him. This is an example of the representation bias.
2. During a discussion about e-business, Robert tells Tom that heunderstands that e-business is a comprehensive term describing theway an organization does its work by usinginnovation and growthin order toefficiently and effectively achieve its goals.
3. Discussing the three categories of e-business was not difficult. Tomsimply stated that the three categories included all of the followingexceptcross sectional e-businessQuestion 2a.In your own words, explain why the Hawthorne Studies were socritical to management history.

Answer: Hawthorne Studies were very critical to management history because of the following reasons:

1. It proved that the aptitudes of the individuals are imperfect predictors of their job performance. It further stated that although they give some strong indications of physical as well as mental potential of individuals it amount produced gets strongly influenced by the social factors.
2. It clarified that informal organizations are responsible for any disruptions in productivity. The researchers concluded that a group life was present among the workers where the studies showed a relation between the supervisors and the workers which is built over time is influenced in the manner the workers carry out the directives.
3. The other vital conclusion they came out with was the norms of the work-group can affect productivity. Although they were not the 1^st to recognize that work groups arrive at the norms of what is a fair day’s work but provided the best systematic description as well as interpretation of this phenomenon.
4. Within a work group exists a social system is what the researchers described as being a social system made up with interdependent parts (Analytictechn.d).

Several decades have passed since the Hawthorne studies have provided the rationale of human relations in an organization. Both the researchers Franke and Kaul used the process of time-series analysis. They used the variables which included the Great Depression as well as the instance of a managerial discipline. All the variables that were used accounted for variations in productivity during its experimental period. Since the Hawthorne interpretations looks into the theories or work motivation which were humane and democratic the observations derived have proved highly beneficial for the managers over the years (NWLINK n.d.).

These variables accounted for almost all the variation in productivity during the experimental period. Early social sciences may have readily to embrace the original Hawthorne interpretations since it was looking for theories or work motivation that was more humane and democratic.

Question 2b.Explain whether the stakeholders of Apple Inc. hold the omnipotentview or the symbolic view of managers’ powers. What negativeconsequence might result from upholding the particular viewpointidentified from the article?

Answer: As per the omnipotent view it means that the head of an organization is the ultimate decision maker and should be made most accountable for the company’s performance. On the other hand symbolic view states that the control of a manger is influenced as well as constrained to outside forces beyond his controller realm of responsibility. These factors include the legislative, economic, and competitive forces.

For the case of Apple Inc. it looks as if the stakeholders at the company hold an omnipotent view of the manager’s power. For example the increase in stock prices by 9000% from the time since Steve Jobs joined the company again and his innovative thinking being held responsible for the growth of the company. This is evident as when a new CEO was appointed he was offered the highest pay package ever as they stakeholders believe that pay of the CEO should be proportional to the responsibilities he has towards the company. Therefore with power and remuneration comes the aspect of responsibility. In case of Apple Inc. the CEO is seen as the mastermind and is responsible for every achievement or losses the company makes.

Question 3a. Discuss how a manager can make good use of the relevant knowledgeabout Hofstede’s national culture framework to better manage workers/subordinates who came from:

Answer: high power distance culture

Question 3b.CLP’s action to reduce its planned tariff hike is most compatible with which of the following ideas? Explain and elaborate your view oneach idea.

Answer: CLP’s action for reducing the planned tariff hike is most compatible with the idea of social responsiveness. The reason for this is that both the companies had initially planned to increase the tariff by 6.3% and 9.2% respectively. In case of Hong Kong Electric the increase was above the inflation rate but CLP’s increase was much higher. Seeking much dissatisfaction among the customers as well as the urge by Donald Tsang to consider the price increase the company responded positively and decreased their increase to 7.4%. This action is in response to the social acceptance where people were not at all happy with the changes made. The management at the company brainstormed and concluded the possible solution to cut down their rates to make their customers happy. The decision of reduction was done by deducting the increase in fuel costs.

Question 4a.Using the seven dimensions of organizational culture (Exhibit 2.5 ofyour textbook) and information from the case, describe the culture atToyota Motor Corporation. Why do you think this type of culturemight be important to a car maker? (8 marks)

Answer: Organizational culture is defined as the system of shared meaning and beliefs which is held by the organizational members who determine the way the members of the organization acts. There are seven dimensions which provide a composite picture of the organizational culture. Mostly the personality of an organization is shaped on the basis of one of the 7 dimensions. Toyota is a company which has been known for their integrity, passion and innovation which extends way beyond just manufacturing vehicles. This has been clear from the onset with the bold policies and procedures the company have been following. The seven dimensions which have largely contributed to the company’s position over the years are:

1. Attention to Detail: This measures the degree to which the employees are expected to exhibit precisions, analysis, and attention to every detail they are provided. The company believes in hiring people as individuals and not employees. It believes that every individual it recruits possesses special strength and ability which has to be exploited by effective management and precision. This has been one of the major achievements of the management which has been a contributor to creation of greater opportunity within the organization. Further the company lays importance to the employee performance and continuously evaluates the ways in which it could improve the efficiency levels.
2. Outcome Orientation: This represents the degree to which the managers focus on the results and outcomes rather than the possible means which has contributed to achieve these outcomes. The recruitment of the employees can be taken as an example where the company has been recruiting the best and the brightest which has been a strong driver of creating new partnerships. Keeping this in mind the management has always taken decisions which have given the perception to the consumers as well as the employess a reputation for excellence on all levels of operation.
3. People Orientation: This measure the degree to which the management decisions are taken into account in relation to the effects the company has on people. The company has always been known for the ethical business sense it practices within the organization. The top management within the company believe in diversification which has contributed in representing many faces at Toyota i.e. minorities. The company states and quotes “We also believe in helping people improve the quality of life in their communities. We work with organizations, schools, universities, and other businesses to support programs that help make our world a better place.” This has been the proof for the company to be known as people and environmental friendly.
4. Team Orientation: It is used for measuring the degree to which the work is organized in and around teams rather than individuals. The hiring policy in the company has been to hire people as individuals and not employees. The management has always been studying its employees and promoting teams to carry out their allotted tasks.
5. Aggressiveness: It measures the degree to which the employees are aggressive as well as competitive rather than cooperative. This has been evident with the aggressive expansion plan the company has been following for years. The employees within the organization have been the major drivers to the aggressive expansion of the company around the world. Their work and innovative thinking have been equally responsible for the place the company has achieved today. This can be said as the company believes in awarding and promoting employee involvement within the organization.
6. Stability: This measures the degree to which the organizational decisions as well as actions emphasize the maintenance of status quo. Being a market leader with about 11% market share globally the company has moved much ahead in the last few decades. Although there have been instances such as the one mentioned in the report where the company had to recall its cars the company has been proactive to take decisions to maintain stability within the organization. In order to maintain its image of a trusted vehicle manufacturer the company recalled its cars as soon as the reports were out of the defects and damages. This was done by the management to depict the importance the company has for its customers and maintain a stable environment.
7. Innovation and risk Taking: This is the degree to which the employees in the organization are encouraged for being innovative and take risks while carrying out their respected tasks. With increased employee involvement in its operations the contribution of every employee has been important. The company promotes innovative ideas and has been continuously promoting the employees to take risks and experiment.

Question 4b. How do you think a long-standing culture that had such a strong commitment to quality lost its ability to influence employee behaviours and actions? What lesson can be learned aboutorganizational culture from this? Explain.

Answer: The reason for the long-standing culture which had been so strong for its commitment to quality lost the ability to influence the employee behaviours and actions due to several decisions taken within the company. The primary reason for this was the aggressive moves for growing its market share and achieves productivity gains. Since the year 1995 the company was following one of the most aggressive expansions within the automotive industry. During this time there was a shift in the policies where the company was focussing on cost cutting methods which severely strained the organizational processes and thus the employees. For example the case has stated one instance where the company shifted to localized manufacturing. It was seen as a massive cost reduction plan which has brought a change in the organizational structure and employee perspectives (All about Simon n.d.).The only lesson to be learnt out of this case of Toyota about the organizational culture would be that the companies need to lay stress on the 7 factors responsible for the progress of the company. The cost reduction strategies and aggressive expansion policies affected the organizational setup and the core policies which the company had been following over the years. Hence a company should always lay focus on its positives and try to build up its business while taking the entire factors into consideration.

Question 4c.Taking the company’s stakeholders into consideration, do you think it was important for Mr Toyoda to apologize for the company’sdecisions? Why?

Answer: It was very important for Mr Toyoda to apologize to the customers for the company’s decisions which had affected them. Being the head of the company and primary decision maker within the company every benefit or damage caused to the people be it internal or external was his responsibility. Therefore, as he would have been credited with the achievements he made for the company he was equally responsible for any damages which the cars of the company caused to its customers. This makes it very important for him to apologize to the customers on behalf of the company for the damages caused to them as he was accountable being the head of the company (Webuser.bus 1999).

Question 4d. What could other organizations learn from Toyota’s experiencesabout the importance of organizational culture?

Answer: There are several things which can be learnt out of the Toyota’s experience about the importance of organizational structure. Organizations can learn the following things after studying the Toyota recall story: (Business Ethics 2010)

• Aggressive growth leads to unmanageable risk: With the urge to become the best automotive country across the world Toyota pushed it to the outer limits of quality control. Organization would observe that while the management was working with plans for an aggressive growth the board exercised appropriate diligence for ensuring growth could be achieved without betting on the entire franchise. Therefore it can be said that gaining market share should now be seen as it wasn’t worth of the trade-off in the longer run for the company.
• Continuous recording and evaluation is important: Organizations should now learn that getting the facts quickly and managing the risks aggressively should always be the priority within the organization. The company seemed late in locating the source of the problem where it has differing accounts for it.
• Uncertainty should not be looked to be an asset: Companies should now understand when lives are at stake uncertainty should never be looked as an asset.Many experts have questioned the explanations given out by the company. Experts believe that the company should have been prepared to state what went wrong rather than presenting different pictures for the possible causes of the quality issues. No company has the clue for predicting when a crisis might crop up, but a good internal risk assessment program could help in identifying those areas of business which the management should always be alert on. Toyota even though had a great management team for dedicated operations seems to have lacked the robust management program that could have helped the company to address the problems as soon as it popped up on the internal corporate radar and possibly before it exploded in the general public.
• Supply chain monitoring is very important: It should be pointed out that supply chain monitoring is one of the most critical factors for any company. As Toyota relied on third party suppliers it had to be much more alert for the quality of materials that were supplied. Knowing the strengths and weaknesses of the suppliers hence becomes very important for smart organizations.
• Accept responsibility: Although this is one of the things to learn the company has done fairly well in this department. The management head apologizing and the company taking measures to fix up the issue seems to be the right step for accepting they were wrong in some department.

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