Research Topics: Management Communication

Management Communication Memo Writing

Question 1 Memo Writing   You are the Administration Manager of a private health care centre. Recently, many customers have voiced their complaints concerning the poor telephone manner of the customer service staff.   You are going to draft a memo to all members of staff concerning the proper telephone manner. Prepare this memo. Answer: 1 page Question 2 Report Writing   You are the General Manager of a private hospital employing about 600 staff. The staff turnover rate of your hospital has been extremely high for the past three years. The low staff motivation is possibly due to the extremely heavy workload and reduced salary.   You are instructed by the Board of Directors to prepare a report with the objective of investigating the possible reasons for low staff motivation and make recommendations on how to improve the situation. Prepare this report Answer: 4 pages.       Credit:ivythesis.typepad.com

Management Communication Memo Writing

Question 1 Memo Writing You are the Administration Manager of a private health care centre. Recently, many customers have voiced their...

Research Paper Management and Communication Strategies for the Fluffy disc Company

Management and Communication Strategies for the Fluffy disc Company This paper takes a look on the main barriers that are likely to be encountered by the US management following their expansion in the Middle East. It discusses the barriers that arise mainly from cultural differences and how such can be addressed through proper communication and management.                                       Introduction As part of its expansion efforts, the Fluffy disc is planning to establish branches in the Middle East particularly in Egypt, Saudi Arabia and Lebanon. It is expected that these Islamic countries have their own concept of organizational management. As such, it is necessary for the US management team that will be relocated for the initial implementation to understand the business environment they will work on. More so, anticipating the barriers in terms of communicating and managing will provide useful insights in managing conflicts. With this, managers will be much capable of dealing with the cultural constructs of their environment. In the Middle East, hierarchy remains very important. As such, American executives that are posted in this region must understand the need to operate in a hierarchy to be a good leader. If not, this will become troublesome on the part of the manager. For Americans such style is viewed as passé. However, understanding the culture difference in terms of management will significantly help in the operation of the US Firm. Literature Review Islamic Management Management is the act by which the elements that are necessary in the performance of a job are administered, directed and shaped. As a manager, one must see to it that the work is accomplished with the proper utilization of the available resources and the labor of other people. In Islam, management is a derivative of leadership which must be based on the Islamic principles. Fundamental of these principles are truth and justice. Islam endures with the relationship with God, man, society and the divine love. As such, the workings of the various elements of the organization must be directly affected by this relationship. Recognizing this relationship is necessary to grasp an understanding on the organization of management in the Islamic system (Kaposi, 2000, p. 55). Fundamentally, Muslims are distinguished by their faithfulness to terms of contracts. They also regard labor highly considering it as an indispensable part of their faith. Idleness and spending time in unproductive work to them is a manifestation of lack of faith. All persons are expected to work to earn their own living and no one is allowed to become a liability to their family unless mentally or physically incapacitated. They also hold a concept of positive reinforcement through reward system (Kaposi, 2000, p. 56). This means motivating them by providing rewards as soon as the job is accomplished. Moreover, Islamic management requires a mutual reinforcement relationship. Individuals are motivated by the need to be part of a group and therefore do whatever is necessary to maintain such membership in the group. As a result, the organization may lack the need to create external control mechanisms to ensure that the employees do what he is tasked. The employee then may control his own behavior to satisfy the need for contextualize. Hence, if the organization tried to impose external control mechanisms, the workers will feel alienated and that they are viewed to be suspicious and outsider to the group. Such feelings may lead to product sabotage, poor performance, low productivity and increase in absenteeism (Kaposi, 2000, p.60). Today, Muslims look forward to a future that hold Islamic promises and remains steadfast to Islamic solutions in solving their problems. In Saudi Arabia, Islamic values shape the managerial attitudes and practices. These values have a strong emphasis on the employees’ obedience to their leaders. The manager’s authority is rightly accepted and subordinates are expected to render respect to their superiors. Attica (1999) asserted that the Islamic values emphasize on harmony, cooperation and brotherly relationships (as cited in Bud war & Deborah, 2001, p. 144).The manager and employees interaction are also influenced by Islamic practices. As an example, Muslim managers and workers meet and pray together regardless of their positions. Such interactions are argued to lessen the physical and psychological distance between management and their employees (2001, p. 144).             Furthermore, the consultative styles that prevail in Arab countries are different from Western consultative style. It has been argued by Mona (1980) that the Arab culture expects the consultation from the subordinates. However, they do not expect to participate in the process of decision making. The authoritarian management style is manifested in organizations in which the work is done based on the social leadership skills of the paternalistic authoritarian mangers (2001, p. 145).     Communicating across Cultures For communication to become successful, one must be able to get what he wants from the other person whilst maintaining the relationship on terms that is both acceptable to them. Communicating cross culturally though poses a great challenge. First, one must be able to send the appropriate signals and interpret the signal received. When one is in another culture, it is likely that he is unaware of how the message he is sending is received by the people around him. Successful communication cannot be ensured by knowing the words in another culture since language is embedded in the cultural context (Nolan, 1999, p. 35). Non verbal cues constitute the majority of the individual’s communication process. However, the meanings attach to these forms of communication vary from culture to culture. As in the Arab cultures, continued eye contacts are strongly emphasized. Americans on the other hand, consider such gesture as a sign of aggression (Nolan, 1999, p. 53). Culture plays a pivotal role in intercultural communication. It is the shared meaning as communication and the system of knowledge. For example, in Arab and Muslim countries, women are not allowed in social gatherings for men because of the separation of the sexes. While for Western culture, it is normal for male and female colleagues to mingle outside the work environment. By understanding the cultural uniqueness of a country, one will be able to use the most effective message, format and channel of communication to deliver that specific message. Moreover, it must be understood that communication may flow within a range of low- to – high context cultures. In low context cultures such as the American and the Northern European, it is important to use the precise verbal messages. In such cultures, the communication is more explicit and direct. On the other hand, a high context culture such that of Arab countries is one in which the messages are ambiguous because the environment, setting and the relationship bestow meaning to the messages.  According to Samovar and Porter (1995), people who are in a high context culture perceive messages from low context cultures as less credible mainly because they require more and precise verbal messages in communicating as cited in George, 2003). Additionally, conflict is communicated differently among these cultures. Low context culture prefers an open confrontation while the high context culture deals with conflict in a subtle and discreet manner. People in the high context cultures are also more attentive to subliminal messages that are attached to nonverbal behavior as compared to those in the low context culture. Hence, communicating with people from the Arab countries with a high context culture must consider both form of communication and the perception of the word or the language that is used to convey the message (George, 2003).             Communicating with people of differing cultures entails a deeper understanding of them. It must be recognized that people associate meaning to verbal and non verbal cues depending on their shared knowledge. Thus, messages may be offensive to people belonging in other culture whilst other may think it is fine. Western culture for one is more explicit than the Arab and Muslim culture. With this, it is necessary that business managers working in Muslim countries to be more prudent in their choice of messages and language usage. Credit:ivythesis.typepad.com

Research Paper Management and Communication Strategies for the Fluffy disc Company

Management and Communication Strategies for the Fluffy disc Company This paper takes a look on the main barriers that are likely to be enc...

Sample Essay Management Decision Making

Management Decision Making Part A   I) Workplace Issue             The management decision issue arose when a processed food company decided to implement quality improvement measures. To achieve this objective, the head office sent a team to investigate the processing plant’s poor performance. The plant has been established ten years ago but this has never achieved the targeted levels of profitability and productivity, which was expected by the company. The investigation was quite extensive covering all areas of plan management and operation. Results of the investigation identified various problems in the processing plant. First problem is the poor use of plan equipment and labour resources because not all equipment was being used and workers are concentrated in a number of manufacturing areas while other areas were undermanned. Second problem is inadequate means for equipment and plan maintenance. It turned out that the reason why some of the equipment was not being used is because some equipment were overused until these broke down and then discarded before using the other equipment. Equipment maintenance schedules were sparingly made, only once every quarter when the usual industry schedule should be daily for basic equipment check-ups and weekly for major checks to ensure that equipment is always in top shape. Third problem is poor record keeping of plant operations from levels of production, quality measures, yields and wastage. There was poor communication between the supervisor, middle management, and floor management making it difficult to actually arrive at a precise record of operations information. Fourth problem is the abuse of the plant’s shift system by workers who insisted on one shift to the discontent of other workers who were assigned to the grave yard shift when the policy should have been rotating shifts every two weeks to ensure the wellbeing of plan workers. A comprehensive report was provided to the plant manager. Attached to the report were also a set of recommendations for actions to address these problems.               During the deliberations between the investigating team from head office and the plant manager, the plant manager opted for an improvement plan able to target instant results. The plant manager propounded that efforts should be centred on simple operational issues requiring attention so that the plant will be able to minimize budget deficits in the current financial year. The investigating team argued in favour of systematic overhaul of fundamental processes to target long term improvements. The difference in opinion was not settled and the parties were not able to reach an agreement amenable to both parties. This eventually led to the investigating team being banned by the manager from the plant premises. To bridge the parties, a lower-level manager was made to handle the dispute by acting as reporting links between the two parties. II) Metaphors             Based on the organizational issue arising in the plant factory, there arise dominant and dependent metaphors that help in analysing the issue. According to Flood and Jackson (1991) and Jackson (2000), in a holistic systems intervention particularly in problem solving, the utilization of metaphor systems help in creative thinking encompassing the organization and the complex issues that managers face. These metaphors are then linked to various systems methodologies (Banat, 1988). By applying this tool, managers are able to cover various problem characteristics in a thorough manner using different perspectives (Jackson, 2000).             Concurrently, Flood and Jackson (1991) also identified three major phases of systems thinking and intervention. First phase is creativity that includes the tasks of identifying objectives, concerns and issues, utilising system metaphors, and linking dependent and dominant metaphors to enhance understanding of major problems. Second phase is choice that involves the tasks of determining the appropriate system intervention methodologies in solving the issues, utilising system of systems methodologies (Sums) that relates metaphors with methodologies, and selection of dependent and dominant methodologies for use in intervention. Third phase is implementation that covers the tasks of arriving at specific change proposal, implementation of systems methodologies based on systems intervention logic, and facilitating a highly responsive and coordinated intervention.             Based on the circumstances resulting to the organisational issue, the two metaphors of transformation and interaction arise with transformation as the dominant metaphor and interaction as the dependent metaphor. Dominant Metaphor Transformation pertains to the sought after organisational change by the food processing plant. Organisational change is the rightful objective since the problem in the processing plant is quite comprehensive covering resources utilisation, production processes, and human resource management. Although the plant was adequately resourced with equipment and employees, these were not used efficiently either singly or in precise combination to achieve the targeted production levels. This resulted to the degradation of resources due to over-utilisation or under-utilisation. Operating processes were poorly executed so that even with a clearly defined process, the plant was not able to consistently follow the process in order to meet targeted production levels. Human resource management is poorly executed because this resulted to the workers abusing the shift process when there was a policy to ensure equal treatment for all workers and prevent feelings of discontent or unfair feelings from the plant’s workforce.             This became a metaphor because even if the food processing plant wants an organisation change, the change was without precise direction. The organisation becomes akin to Northrop, a two-headed dog in Greek mythology. The only difference is that the tow heads cannot agree over the direction that the company would take. As long as the two heads cannot agree on a single direction or pace, the body cannot comply or follow through with the direction of the head. In the food processing plant, the investigating team sent by the head office constituted one head while the plant manager constituted the other head. Although both parties wanted change in the organisation, particularly in its plant operation, the parties were not able to agree on what solution to follow and more so how to implement the solution. In Greek mythology, although Northrop was portrayed as neither good nor bad, in the end this creature was slain by Hercules as part of his labours. This would also be the fate of the food processing plant. If it will not be able to decide on a unified solution, then it will eventually be killed if not naturally die with the emergence of other food processing plants with more effective systems.             Food processing industry is a highly competitive business because of ease of entry especially of larger firms with sufficient resources to support the investment as well as internal competencies that supports the creation of value for the company. If the food processing plant will not be able to address its internal issues, then it will not be able to implement a unified, directed and responsive solution to meet its production level targets as a short term goal and overhaul the organisation to support sustainability as a long term goal. Organization transformation through change without a focus or direction is futile. Dependent Metaphor             Interaction is the dependent metaphor based on the issues arising in the food processing plant. Collaboration pertains to process-linked relationship engaged into by different parties in order to accomplish common goals. This may also be considered as the process involving individuals, groups and systems working at a task or tasks at a higher level than mere coordination. This then involves joint planning, resource sharing, and joint task management and occurs only in instances when there arises a shared understanding of issues, mutual trust, open communication, and high tolerance for divergent perspectives. (Matisse and Nielsen, 2000) The result should be clearly defined set of solutions targeted to achieve predetermined objectives.             Although the food processing plant seeks to achieve collaboration in problem solving, the effort became a metaphor when it proceeded to accomplish this activity without utilising effective communication as facilitator. This is like putting a blind and mute person as partners who do not know about the condition of the other and they do not have a common means of communication. The result would be the accomplishment of a different task, the non-completion of the task, or the engagement of the parties of the time allotted to them trying to express their ideas even if the other party cannot comprehend the ideas expressed.    This is expressed in the fact that when the investigative team was sent by the head office to the plant, this constituted an imposition on plant management rather than an invitation. This implied that even if the problem lies in the management of the plant, the solution finds source in the head office. Although, the plant manager was informed that an investigative team will arrive at the plant, he was not consulted beforehand regarding the problems arising in the plant and the reasons for the inability of the plant to meet targeted production levels. This meant that the plant manager, although in charge of plant operations was not considered as an important player in the investigation.             Apart from the isolation of the plant manager in the investigation, the investigative team also excluded the other members of the plant management staff such as the middle and floor managers with first hand information on the different tasks and activities in the plant. The investigation process became a ‘them and us’ situation with an exclusionary effect. The investigative team converse about plant operations among themselves while the plant management discuss among them. In effect, there was no sharing of information or educational process and the report was solely based on the perceptions of the investigative team without in-depth and long term exposure to plant operations.             In addition, prior and during the investigative process, there was no agreement between the plant management and the investigative team over the process that will occur, the role or participation of each party, and the expected outcome. This is important to ensure the full cooperation of the parties involved in providing information needed in decision-making. The result is that the plant management becomes weary of the investigation process since they do not know what to expect while the investigative team is completely in the dark about where to begin and how to gather information since they have not been exposed to plant operations. Lack of involvement of the parties who are key and direct players in plant operations in the investigation decreases the validity and reliability of the report and the recommendations based on the report.             Moreover, the investigative and plant management team got carried away in a tribal battle instead of addressing head-on the problems identified in the plant. The improvement process was diverted to clashes of opinion that failed to result to learning.  According to John (1992), the influence of a conflict to an organization relatively depends upon the type of conflict, which are either relational or task conflict.  An adverse relationship arises between relational conflict and productivity as well as with group satisfaction. This is because relational conflicts intervene in task accomplishment when the organization members become engrossed in power relations such as threat minimisation, power enhancement, and cohesion instead of the group targeting issues as a single entity. Concurrently, John, North craft and Neal (1999) provide that relational conflict minimises interpersonal understanding preventing the group from accomplishing the problem solving process. If most of the time of the organisational members is allocated to interpersonal issues instead of the process of decision-making, then improvement efforts suffer. John (1992) explains that on the contrary, task conflict results to creativity and innovativeness because different perspectives result to the determination of various solution options to ensure that the organisation is able to come up with the best option appropriate to its problem context. Linking Dominant & Dependent Metaphors             Transformation is the dominant metaphor and interaction is the dependent metaphor because understanding the latter involves the consideration of the former as context and the latter problem fall under the former issue.  Organisational transformation is an all-encompassing issue that include a variety of issues such as company culture, resource allocation, plant processes, management systems, assessment measures, tools, and other areas covered by the transformation. Understanding the dominant metaphor leads to the clarification of the dependent metaphor while the comprehension of the dependent metaphor contributes to the understanding of the dominant metaphor. In the case of the food processing company, knowing the manner that the organisation works coupled with the underlying principles explaining its workings gives rise to the reasons for the difficulties in collaboration while the issue of collaboration provides one of the reasons for the difficulty of the plant management and the investigative team to come up with a unified solution to its operations problems.             The figure below shows the relationship between the dominant and dependent metaphor that also serves as the guide for selecting the methodology that applies to the problem. Thus, directed organisational transformation coupled with collaboration facilitated by effective communication should reverse the failure of the plant management and the investigative team to come-up with unified, responsive and effective improvement activities.                                   In the dominant metaphor, the fusion of the two heads into a single decision-making entity would strengthen the mind-to-body coordination of thoughts to action. The organisation functions more efficiently if the head provides a single direction instead of two heads directing the body to move in different directions. In the dependent metaphor, providing a common means of communication through computer assisted software able to voice out the ideas typed by the deaf and translates into readable text the ideas expressed by the blind would make the team work or team mates. With a common means of communication, the group members are able to express their ideas clearly and the parties do not have to experience frustration in explaining their ideas to the other party and misinterpreting the silence as lack of assent. III) System of Systems Methodologies (Sums)             Under the system of systems methodologies, there are different methodologies applicable to problems depending upon the classification of the metaphors as either simple or complex and the attitude of the parties involved in the metaphors as unitary, pluralist or coercive. According to the criteria discussed by Flood and Jackson (1991) in determining classification of the system expressed by the metaphors, the system of the food processing plant is complex because the organisation is large and there are many systems being applied, there is also loose organisation and strong interactions, and the organisation is governed probabilistically.               Flood and Jackson (1991) also provide for means of classifying systems according to key features as well as the appropriate methodology that applies to the specific context. The case of the food processing plant shows that the system is pluralist because of the parties involved in the system and the beneficiary parties of system implementation. Based on the table below, the food processing plant has the methodology option of applying interactive planning covered by the soft systems methodology.             Since, the system characteristic of the food processing plant is complex-pluralist the methodology that applies is soft systems. This methodology applies to the given situational context because of the several underlying concepts of the methodology that capture the situation of the food processing plant.             First concept is the concentration of efforts toward the horizontal aspects of the system (Keys, 1988). This pertains to the need to focus on the relationship between equal parties involved in the system, the investigative group and the plant management with diverging ideas. This means that the parties should work more on interactive relationships in order to strengthen the working relationship between them to come-up with a unified solution. Second concept is the handling of disagreements, which is the primary role of systems thinking (Check land and Scholes, 1990). If the source of the differences in opinion, ideas and values is addressed, then the disagreements may be minimized or the conflict would be limited only to task conflicts that support creativity and innovativeness in systems solutions. Third concept is the exploration of purposes that serves as the unifying factor for the conflicting parties (Keys, 1988). If the investigative group and the management team agree on a set of objectives, then this would support the transition into a more purposive interaction. Fourth concept is the recognition of varying beliefs and values (Mingress and Taylor, 1992) so that there is need to focus attention on accommodating differences to gain the commitment of different parties to the set of objectives for organizational change. Fifth concept is systematic learning process generated by the exchange and respect of ideas (Howell, 2000) so that the parties involved in the problem situation are able to achieve a high level of appreciation of the value of other people’s views. Sixth concept is consensus building among the parties involved (Mangers and Taylor, 1992). This involves a high degree of tolerance for other people’s opinions to in order to derive the best recognized solution to the problematic situation.             Thus, soft systems methodology sufficiently addresses the metaphors of undirected organisational transformation and collaboration without communications through the application of the learning approach that involves tolerance, respect and accommodation of differences in opinion. These in turn support the development of solutions for organisational change and enhance effective communications when the parties are open to the contribution of the other party.         Part B             At the heart of a learning organization is a shift of mind “from seeing ourselves as separate from the world to connected to the world, from seeing problems as caused by someone or something out there to seeing how our actions create the problems we experience. A learning organization is a place where people are continually discovering how they create their reality and how they change.” (Singe, 1990, pp. 12-13) Critically discuss how the previous quotation is relevant to your own business organization.               Singe (1990) captures a description of a learning organisation as a living organism that is able to chart its course, direct itself towards that course, and make the necessary adjustments in the process. This means that organisations are active participants in the achievement of its goals and the solution to its problems (Bowman and Deal, 1997) and change agents (Singe et al., 1999) because of the learning it obtains from the continuous process of commencing and completing various projects, facing and addressing problems, and changing or enhancing existing systems and processes.              Singe (1990) defines learning organisations as groups “where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning to see the whole together” (p. 3). The underlying concept behind this definition is that amidst the life span or business cycle of organisations, they face rapidly changing situations so that only the organisations and organisations members who are adaptive, flexible and productive enough are able to excel. To achieve an organisation that is adaptive, flexible and productive, it should be able to draw the commitment and capability of its members to learn from its experiences.             In application to the food processing company, it will be able to survive the competitive environment necessary to change its current processes and systems only if it motivates its members to consciously derive learning from its contextual experiences. If the managers are open and highly committed to learning, they become open to other perspectives, ideas and values. In processing these aspects of differences, they are able to make value judgments whether to accept or reject fully or in part other peoples’ ideas as well as whether to abandon their ideas in favour of the ideas of others or integrate various ideas. In effect, the respect and accommodation of ideas minimises unnecessary and unproductive conflicts.             Since the process is highly interactive, managers adhering to the learning approach then become conscious of their part as contributing members to the organisation and not just single deciding entities. As a member of an organisation, a manager influences the organisation in the same manner that the organisation influences the attitudes and behaviour of the manager. In the case of the plant manager, applying the learning approach could have made him more active in the investigative process. Although, he was not consulted regarding the investigation, he could have welcomed this as part of the learning process to improve plan operations. Even if he does not agree with the decision to the head office to conduct an investigation without his involvement, he could have communicated his concerns to the head office prior or during the investigation instead of alienating himself from the investigating team. By communicating his concerns, the head office gains knowledge on his perspectives and could have considered his vital participation in the deliberations over the appropriate solutions. The head office, in applying the learning approach, it recognises the necessary participation of the plant management in the investigation process because of the common objective of wanting to improve production levels. In doing so, the plant management would not isolate or alienate the investigative team and instead cooperate in the process to ensure that comprehensive information is gathered and the recommendations are accurately based on the true accounts of plant operations.             The result of the implementation of the learning approach is the implementation of self-assessment and assessment of individual participation relative to the organisation that are necessary in accountability. Accountability in leadership pertains to an individual’s recognition and acknowledgement of responsibility for decision and actions coupled with the provision of reports and explanations as well as answering for consequences. (Dupree, 1990) In the case of the plant manager, perhaps the necessity of conducting an investigation without his participation came about because of his inability to hold accountability for the poor performance of the plant for ten years. If the head office receives regular reports that detail the factors that cause the inability of the plan to meet productivity levels and the actions taken by the manager to address these problems, then there would be no need to conduct an investigation. It could also happen that the head office is looking for a fall guy due to its ability to provide good leadership to support the needs and objectives of plant operations. If this is the case, then the exclusion of the plant manager from the investigation is intended to prevent the manager from knowing the real intent of the investigation. However, if the organisation applies the learning approach as part of the company’s values, there would be accountability from the different key players in the food processing operations. The head office constantly evaluates its leadership decisions and actions relative to the plant operations; the plant manager takes responsibility in implementing company policies assessing plant performance, and enhancing plan operations; the middle managers take charge of linking the plant manager decisions to the state of floor operations; and workers compliant with organisational policies. Thus, with recognition that organisation members are change agents as they are objects of change, learning is maximised leading to the optimisation of adaptability, flexibility and productivity. As change agents and active participants in the organisation, organisation members not only find purpose in understanding their inevitable role in the organisation but also their fulfilment in knowing they are able to create change to improve the organisation. Ultimately, the organisation benefits by becoming a learning organisation.    Credit:ivythesis.typepad.com

Sample Essay Management Decision Making

Management Decision Making Part A I) Workplace Issue The management decision issue arose when a processed food company deci...

The Uniform Decision Platform Sample Essay Paper

To date a general theory of decision support systems has not yet been established. A number of observations and principles from a wide range of selected writings present some generally accepted notions of DSS.             A DSS is “an information processing system that is embedded within a decision making system.” 1 It requires three major components: dialogue management, model management, and data management. 2 A DSS should be designed to perform some or all of the following six tasks: selection of data, aggregation of data, estimation of parameters, simulation of changes and consequences, equalization to calculate decisions satisfying certain conditions, and optimization. 3 Carlson prescribes four functions a DSS should provide: representation; operations for intelligence, design, and choice; automated memory aids; and aids to direct control over the system. 4 Furthermore, decision support systems are usually concerned with semi structured or nonstructural problems in which the solution path and relevant data are difficult and sometimes impossible to define in advance. 5 Some writers indicate the importance of considering the user’s decision-making style in designing a DSS, 6 whereas others disagree. 7 This diagram is a simplified model of the decision process was formulated and served as a point of reference for the design of the DSS. The model is shown in Figure 1. The major stages of the decision process are decision initiation, decision evaluation and choice, and decision implementation. The DSS consists of an information base and programs that help control the decision process. A decision is initiated internally by the DM and his staff, or externally. External initiators may be from within the organization headed by the Decision Maker (DM) or from outside the organization. It is assumed that initiated decisions will eventually take the form of a uniform decision platform. This transformation may be lengthy and expensive, nevertheless only its product is reflected in the model. The decision platform is studied and the recommendations are evaluated. The process is iterative. The DM may require additional information or a revised decision platform before making a final decision. The resolution may be further transformed (e.g., into detailed actions), but will finally take the form of an instruction to be implemented. 2. Figure 2 The Uniform Decision Platform’s Format CONSOLIDATED DECISION PLATFORM Problem description: Background: (History, evidence, and global policy on the issue) Alternative solutions: Positions of all parties: (Presented as participant’s position on a specific option and includes predicted impacts) Reasoning: (Includes conceptual assumptions, predictions about operational context, constraints, criteria, precedents) Operational recommendations: (Usually a subset of the alternative solutions; includes conditions when to review the decision) Once a decision has been initiated, the participants are asked to present a recommendation in a uniform decision platform similar to the one described in Figure 2. From these recommendations a consolidated platform for decision is constructed. If necessary, the consolidated decision platform can be supplemented with additional information from the DSS. The consolidated decision platform is presented to the DM as the front page along with all the original communications. The DM evaluates the alternatives, often in the presence of some or all of the parties that contributed to the process. Information that was added during the evaluation and choice stage is added to the consolidated platform. A resolution is reached and passed to the DM’s subordinates to be implemented. The implementers are responsible to the DM’s staff for reporting on the progress and quality of the decision implementation stages. Actual results, as opposed to planned results, are recorded and later may serve as a basis for decision assessment. The DSS supports the coordination of information flow and storage. It helps to process and analyze the control information, the bank of decisions made by the organization, and the incoming information. Above all, it serves to integrate all types of information into a coherent picture. The Uniform Decision Platform The consolidated decision platform format is intended to facilitate the DM’s final judgment by presenting the essential information effectively, helping in the assessment of the quality of the decision-making process, and promoting the further search of information. These functions and the choice of the platform components are based on Janis and Mann’s criteria for quality decision making. The components of the uniform decision platform include a background to the decision, the alternative solutions that were considered, the recommended alternative, and the reasoning behind the recommendation (see Figure 3.3 ). Note that “Background” should include objectives, a general set of background beliefs, and any evidence that bears on the issue. From a practical viewpoint, it seems profitable to underscore the operational recommendations, which conceptually are a part of the recommended alternative. Operational recommendations include points such as major stages, deadlines, conditions under which to review the decision, and so on. Note again that the use of the DSS, as described above, is dependent on the utilization of a uniform decision platform. Control over the work carried out by the DM’s agents is facilitated by structuring the presentation of their results. Uniformity in presentation helps the coordinator of a particular decision to review and integrate the incoming material into one decision platform. A coherent and uniform platform eases the DM’s task of processing the large amounts of relevant information. Yet no attempt is made to impose structured processes on the analyses that are performed by the DM or his agents. Since most of the problems encountered are ill-structured, such an attempt would be futile and damaging. 36It should, however, be noted that in time this procedure may indirectly affect the analysis stage by the requirements it imposes. Control over implementation is achieved by comparing actual results with plans that were elaborated on in the resolution. The decision platform requires sufficient details to enable analysis of deviations, and to learn about the accuracy in both predicting uncertain events and analyzing the options on the basis of these predictions. Initiation of new decisions and modifications of old decisions are aided by a continual review of predetermined conditions. For example, the most elementary predetermined condition is a date check; a more complex condition may pertain to another decision. Active searches for decisions that are based on assumptions that no longer hold may also support the initiation stage. Finally, the uniform platform enables the user to exercise “what-if” questions in a narrow sense–that is, postulating hypothetical situations and then searching for decisions that would have been affected by these new situations through conceptual assumptions and material constraints. For example, a decision on a joint research project with another country was conditioned, for financial reasons, upon good relations with a third party. In a different context altogether, one may pose a what-if question on the binational relations with the same third country by feeding a temporary situation of “bad relations.” This new state would in turn trigger a “no longer valid” situation for the joint project decision, thus enabling the user to inspect all the resulting effects of “bad relations” defined in the information base. Credit:ivythesis.typepad.com

The Uniform Decision Platform Sample Essay Paper

To date a general theory of decision support systems has not yet been established. A number of observations and principles from ...

Sample Management of Creativity Essay

Management of Creativity   Introduction Organizations operate effectively through a number of significant elements. In a business for instance, the organization would need the capital, strategies and market to function. However, one of the essentials of an effective organization is human resource. Through the talent, knowledge and skills of the employees, organizations are able to produce products and deliver services. In addition, employees are also the main sources for organizational changes, which in turn allow growth and development. As people are important organizational resources, it is imperative that the right approaches of human resource management should be implemented. Accordingly, managing human resources is concerned with the earning and management of people.  In addition, HRM is concerned with change of behaviour, as can be seen in the manifestation of innovative or improved skills, implementation of new knowledge and understanding, and employing new attitude (2003). Further, HRM emphasises both the intentional and accidental learning. Human Resource Management covers the organisation as a whole, and adheres to the needs of individual functions.  Some authors that HRM includes different activities and processes implemented by the organisation with the intention of developing or enhancing the performance of both organisation and individual (1996). This definition stresses that a certain organisation can become a learning entity, and that the learning procedures of both the individual and organisation are capable of influencing organizational outcomes. Primarily, the main objective of this case study is to conduct a critical analysis of the management style of a specific organisation and identify some management issues faced by the human resource management. It also aims on providing some alternative solutions for the identified issues as well as recommendations for the management of the company. In this regards, the company that would be given emphasis is the Wing Hang Bank in Hong Kong.   Human Resource Management Issues             Wing Hang Bank is the 5th largest bank in Hong Kong with an interesting history of how the bank started in 1937 with only 19 staffs to the nowadays 50 branches and representative offices throughout Hong Kong, Macau and Mainland China ( Bank, 2006) historical background is the affiliation with the Bank of New York, which has become the 10th largest bank in the United States.  Yet, Wing Hang Bank in Hong Kong is only regarded as a medium sized bank offering competitive banking products and services as the others.  Interesting enough, Wing Hang Bank has the ability to attract customer deposits along the years with a comparatively small branch network and minimal advertising if not nothing.  Wing Hang Bank has rights to believe that its success is based on the rewarding experience offered to its customers.   The management of WEB gives emphasis to the notion that efficient Human Resource Management (HRM) is a strategic approach to managing employee relations which emphasizes that leveraging people’s capabilities is critical to achieving sustainable competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices (Bratton & Gold 2003:3). Personnel policies, including welfare programs, sports, and recreational activities, are initiated by management unilaterally or in consultation with plant or works committees which are usually separate from the union (McGovern, 1998).  However, because of different expansions made by the company, it resulted inevitable organizational change not just in terms of the organizational structure of the company but most specifically in the current issues on cultural integration among the employees and staff of the banks. There are various management issues facing the company and that include complaints about the employees working environment particularly the employees’ excessive hours of work, salary levels that are below the standards of the industry and their lack of motivation in performing their daily duties and responsibilities.             Leaders of the banking unions are urging the management of the Wing Hang Bank to take into account the working conditions of the members of the company by analysing the current business environment experienced by the staff. The members of the labour unions specifically want the management to address their need to create a balance between their working conditions as well as the demands of their household in order to minimize stress as well as absenteeism among the members of the company’s workforce.  The staff and employees of the bank are likewise worried regarding rumours behind the expansion of the bank. Accordingly, the banks aim to reduce the number of employees by 15% once the expansion is in place so as to generate savings trough the reduction of expenditures on wages and salaries.                         The inability of the human resource director to resolve the issues confronting the banking organization has resulted to his termination. The COE of WEB believes the current staff and employees of the company are not capable and qualified for the new organizational and business demands that the company faces as a result of their business expansion strategy that has been made.  The company is at present undertaking a corporation-wide review in order to assess and evaluate the bank’s needs relative to the capabilities of the members of the workforce, thus measuring the competencies of the individual staff and employee. One of the objectives of the comprehensive company assessment initiative is to determine if all the employees can be absorbed by the new WEB. In which case, employees and staff who are characterized with similar knowledge, skills and functions have the possibility of being retained or replaced depending on their capabilities and competencies.             In this regard, there is a need for a new Human resource management approach and policies so as to solve the issues and problems encountered by the company.     Essentialities of Human Resource Policies             The role of the Human Resource Management policies and practices relative to the strategies, goals and financial stability rests on the core philosophy of human capital resource utilization highlighting the importance of the members of the workforce for the overall operation and function of the business company. The discipline and guiding principle of the Human Resource Management are grounded on the belief that successful business endeavours depend on the productivity of the human resource. Since the ability of the staff and employees to efficiently and effectively attend to their duties and responsibilities depend on the workability of the working environment they are situated in, which is the main responsibility of the Human Resource Management, proper Human Resource policies and practices directly influence the level of satisfaction among employees as well as the quantity and quality of their work output.                According to Beer and colleagues (1984) the human resource management covers the administration of people of a particular business organization that is mainly responsible in creating management decisions that affect the welfare of the employees of the company. As such, management actions and decisions that directly influence the nature of the social networks and relationship between and among the members of the company are within the bounds of the responsibilities of the Human Resource Management as a management department that coordinates the human resources of the organization to meet the set goals and objectives (Beer, et al., 1984). In effect, Human Resource Management policies and practices drive the entire business organization to success depending on the effectiveness of the mangers to motivate the employees and be productive members of the company. The tasks of the people in the Human Resources Management are highly complex because it involves all issues that encompass the relationship between the employees and business organization as a single working unit.  The core philosophy of Human Resource Management revolves around the notion that the most important resource of an organization is the workforce who makes possible the achievement of a sustained business success, growth and development. According to Lippie (2001) such belief, if common among business organizations, will lead to the strategic use of the human capital to maximize and fully utilize its potential, thus contributing to the overall success of the company. As the driving force behind the creation of Human Resource Management, organizations are at present taking strategic approaches to the management of their people in which human resource professionals deal with areas such as employee handling, recruitment and training, evaluation and assessment of performance goals and achievements, salary, wages and other legal benefits of the employees, professional development, and labour relations as well as safety and health of the human capital (Lippie, 2001).   Human Resource Alternative Solution At present, the duties and responsibilities of the contemporary Human Resources Management is incomparable with the traditional human resource practices. According to (2005) traditional Human Resource Management puts the Human Resources managers as the sole members of the organization that are fully responsible in handling issues and problems that concerns the employees. In this respect, the function of people management is a general manager’s responsibility as the person who implements the encompassing managerial duties of the organization. Representatives of the Human Resource department only coordinate with each other and administer the policies and practices that the manager deems most appropriate (2005). Modern Human Resources Management today highlights the role and participation of line managers in the likes of the functions of the general manager. In this regard, the implementation of change within an organization has been successfully applied through the reemphasized roles of the line managers.    The complexity of people management has increased which is evident in the different management approaches that are available at present for the use of the Human Resources departments. Contemporary business organizations implement modern management approaches like Just-in-Time, Total Quality Management, Six Sigma, Kaizen, Business Process Reengineering and other measures and indictors of job performance in order to improve the human relations within corporations (Costa & McCrae, 1992; 1992). The implementation of these Human Resources practices intends to illustrate the new people management approach of involving the line mangers to decision making. In such case, the role of the line managers and the responsibilities of the Human Resources head are at present highly similar in nature both in terms of theory and practice (1993). In the case of WEB, the application of Business Process Reengineering techniques and methods will add responsibility to Human Resources practitioners particularly to resolve the issues as well as to meet the objectives of the company to collapse and centralize decisions regarding employee relationships, hiring procedures, and the implementation of new organizational policies. Meanwhile, continuous management approaches in handling the concerns of the labour force will need the involvement of the Human Resource personnel to ensure that the employees are enthusiastic and dedicated about their jobs. New Human Resource practices should be administered within WEB for the development of values and morale of the employees as the main responsibility of line managers.   Effective Workplace Industrial Relations In the case of WEB, the Human Resource Management Model of the company should be defined in terms of the goals of the company that contains the necessary elements of creating better organizational foundation. There is a considered chain reaction when change is introduced. The decisions of the executives are imitated by the entire organization particularly the employees in which positive inputs lead to the betterment of the company. Since the work force is the most important resource of the business organization, their grievances and concerns should be properly handled and attended to. Failure to do so will result to consequent downturn of the entire company.   As such, the human relations of the company should meet the demands and needs of the labour unit because they have the capacity to paralyse the operations of the company. The company should be able to absorb all the previous employees of the company because if not, social issues will confront the organization. In terms of employees that do not meet the standards of the company and the entire international banking industry, proper assessment of their skills and knowledge as well as their previous contributions to the company should be facilitated and reviewed. Training should be provided for such employees particularly those who are willing to learn and be trained not just for the employment but for individual professional growth. Such organization members, if properly educated will be the future assets of the company. Proper communication with union leaders should be considered and taken into account in which the company must employ certain measures in order to ensure its good relationship with the labour units. Moreover, there should be increased formality in terms of recruitment and selection procedures for more systematic and objective hiring as well as to avoid wasted labour costs and employee turnover. Strategic training and learning approaches meanwhile should be able to create staff and employees that are dependable and flexible. In this regard, contemporary Human Resources approaches should be integrated to optimize the employment outcomes of the company. Aside from the above mentioned solutions, WEB should also considered Employee Reward Policy in order to motivate and encourage the workers and employees to render their performances to the very best they can and to make a difference individually or by group or teams.  The policy should also be able to give recognition to those employees whose works is exemplary or that employee who has contributes to outstanding achievements and accomplishments of the mission and objectives of an organisation as a whole.  The incentives may be monetary or non-monetary. Rewards and recognition go a long way to keeping employees motivated, satisfied, and committed. Management should recognize employees for both their progress toward and achievement of desired performance goals. It should show appreciation for small accomplishment as well as big ones. The recognition must be ongoing to reinforce employees’ need to feel that they’re doing a good job.  Moreover, the best forms of recognition typically have little or no cost (Nelson, 1998). Human beings have needs which can be classified as physiological, safety and security, social, esteem and status, and self-actualization. Hence, the HRM must establish an Employee Rewards Policy that would be able to satisfy the demands of the employees. If any of the needs is unmet, or unsatisfied a person, the individual can be motivated if provided with an opportunity to satisfy the unmet need or needs.   Wages, Benefits and Proper Work Compensation The hallmark of successful management strategy particularly when it comes to handling people is to keep moving despite evident drawbacks in the current work environment. Excellent management practice at present should be characterized with positive attitude, optimism, and innovative ideas to sustain the drive towards development of the entire organization. In this light, industry leaders should have the capability to treat mistakes as learning experiences to further show strength of character as well as good moral qualities. In the case of Human Resources Management, practitioners should be able to provide motivation as well as control over the members and staff of the organization in order to fulfil the demands of the work environment. Such traits will enable Human Resource managers to function efficiently as decision-makers of the company. According to Williams (1995) members of the executive committee of business organizations should be capable of handling initiated changes within the company in which the Human Resources Management function should be able to reflect the new organizational structure and functions. Problems on employment status and conditions brought about by globalization trends dealing in particular the geographically diverse workforce addressed the need to create an understanding regarding various cultures, customs and laws particularly when it comes to issue on the salary, wages, compensation and benefits of the employees.  In the case of impending problems and issues of WEB regarding the wages and benefits of its human resources, the Human Resources manager most specifically the line managers, should be able to explain to the employees the real situation and condition of the company in the hope of gaining their respect and sympathy towards the management. In addition, the company should also implement compensation programme to meet the needs of their employees. Employee Compensation Policy must adhere to the existing law of HK government. Primarily, the main purpose of the Employee Compensation Policy is to provide the employees their deserve payment to the quality service that they have rendered for the company. The Employee Compensation Policy is considered today is “no-fault” nature of law (Gallia, 1998).  Since the Employee Compensation nowadays is based in the concept of insurance, no-fault means that it does not matter who is a fault, and recognizes that no one is at fault.  Herein, the only thing that matter is that provision in the policy will be made for the employee’s medical care and loss of earning power.  In return for predetermined and certain benefits, employee gives up the right to sue their employers (Ulrich, 1998).  In return for certain limitations on the amount of the benefits, the employer provide for all injured employees, even when the injuries could not necessarily have been prevented.  In this manner, it can be noticed that both the employees and the employers “gave-up” certain rights when the laws were enacted. With this regard, the International HRM practice that WEB should imposed must be able to create an Employee Compensation Policy that would certainly not neglect the right of each of any members of the organisation like the employee and the employers.  Moreover, the HRM should be ready for changes and policy amendments to adapt to a constantly changing environment. Employee Compensation Policy must also include other benefits like medical expenses and “wage-loss of injured employees. Herein, the international HRM practice that should be implemented by Wing Hang Bank must include medical benefits in Employee Compensation Policy. This may cover doctor, hospitalization, drugs and medicines, medical testing and additional therapy if necessary.  In addition, the medical benefits should also include rehabilitation which may or may not include vocational rehabilitation.  Vocational rehabilitation comprises a service that assists the employees in returning to gainful employment (Henderson, 1996).  On the other hand, the Wage Loss benefits (also termed as indemnity benefits) are generally of two types; the temporary and the permanent. Both temporary and permanent categorizes: partial and total.  Hence, the HRM must be able to cover these types of wage-loss benefits within the Employee Compensation Policy (See Appendix 1).             In addition, HRM should be able to include “death benefits” in the content of Employee Compensation Policy which is paid to the employees’ immediate family when death results from on-the-job accidents.  Benefits of the employee may not only comprise in terms of benefits and medical terms.  In this manner, the HRM practice of WEB must also includes leaves, bonuses, overtime, retirement plans, salary and wages to the Employee Compensation Policy and that the HRM must ensure that the Policy is fully understood by the employees to avoid problems and conflicts. The Human Resources Manager should be able to communicate to the members of the company in order to efficiently deliver explanations regarding the current payroll system of the organisation.  They should be able to present to the employees how their salaries are computed by taking into account the factors that determine their wage rates. These factors include the internal and external market environment considerations of the company as supported by the laws and policies that protect the rights of the employees. Be specific and detailed in presenting figures and invite the presence of a lawyer to represent the interest of the unions. Aside from clearing the conflicts regarding the wages and salaries of the staff and employees of the company, incentives in terms of financial support like bonuses as well as intrapersonal rewards such as positive critical feedbacks and recognition should be endorsed by the company through the line managers in order to increase the competence and self-esteem of the employees. Such human relation practices will generate benefits for the company in the long run since it will result to better work attitude that will boost the productive capacity of the members of the organization.   The Ideal Workplace Environment In the case of WEB, expectations regarding workloads and task requirements exceed among the employees as multi-taking is now the definition of current work environments particularly those operating at the international level.  According to Champion-Hughes (2001) the importance of good work life environment in terms of quality should be made evident through excellent supervisory skills from the management, ideal workplace conditions for the employees, and highly satisfying careers that meet the professional fulfilment of the workforce. If WEB will be able to provide rewarding working conditions for the benefit of the employees of the company and the entire business organization, opportunities will be realized that will contribute to the success of the firm. Employees will become motivated and productive which will result to the company’s attainment of its performance goals and corporate objectives (Champion-Hughes, 2001). The present function of the Human Resources Management highlights the emphasis on quality people handling approaches characterized with control in which competence and flexibility among the skills and knowledge of the work force has taken over the traditional quantity and passive involvement of the employees. Modern administrative approaches of managing the human capital of business organizations centre on the active participation of the employees through wider dissemination of tasks and responsibilities. Such approaches initiate the sense of accountability across the staff and members of the company for them to feel important in the daily operations of the organization. Competition is likewise enhanced through these practices which minimize the possibility of the feel of burn out among the employees (Bach & Sisson, 2000). These workplace conditions should be characterized within the WEB work environment. Despite the drive of WEB towards global competitiveness, quality work outputs, innovation, and cost reduction measures, the workplace environment of the company should foster good working conditions that place importance on its human resources and capital. The cross-cultural background and differing cultural orientation among the members of the organization should be addressed by the company through equal opportunities. This will facilitate sound working relationships among the employees. Moreover, the hierarchy within the company should be overly emphasized so that the staff may work comfortably within the presence of the supervisors. Subordinates should not feel of less importance in order to foster equality between and among the members of the organization.            Conclusion Every employee in a business organization attends to duties and responsibilities that will hopefully bring the company to success and corporate competitiveness. From the presented discussions of this working paper, it can be assumed that the discipline of Human Resource Management will increase in complexity as future demands and needs in workplace likewise increase. In this light, the duties of top management executives who are directly in control of the working conditions of the employees of the organization can expect greater work responsibilities in the future. The trends toward globalization strategies among business companies will bring changes in the corporate environments which will directly impact the human resources of international companies and firms. Adapting to such changes will be foremost concern of the people in the Human Resources profession. All these have been evident in the presented case of WEB as a result of the expansion strategy of the company. The current business environment of the company is far from being ideal. But with the suggestions and recommendations forwarded by this paper, the management of the company will be hopefully given sound solutions to the problems and issues that confront the business organization. It is highly recommended that the management will exhibit clear leadership, integration capabilities, good communication and relationship with the employees, flexibility in handling conflicts as well as intensive commitments to the rights and welfare of the members of the workforce.       Appendix   Appendix 1   The Legal Nature of Disability   Partial Total Temporary TAD TTS Permanent TAD TTS Permanent total disability exists when the employee has been rendered completely and permanently incapable of engaging in any type of substantial and gainful employment and/or has essentially lost all functional capability. Temporary total disability exists when the employee, on account of the injury, has been rendered completely, but temporarily, incapable of engaging in any type of substantial and gainful employment. Permanent partial disability exists when the employee is disabled in a manner which involves part of the body or partially interferes with an individual’s ability to engage in gainful employment permanently. Temporary partial disability exists when the employee is disabled in a manner which involves part of the body or partially interferes with an individual’s ability to engage in gainful employment, but only temporarily. Credit:ivythesis.typepad.com

Sample Management of Creativity Essay

Management of Creativity Introduction Organizations operate effectively through a number of significant elements. In a business for i...

The Term Supply Chain Management

Supply Chain Management Introduction             The term supply chain management (SCM) was initially used in wholesaling and retailing to denote the integration of logistics and physical distribution functions with the goal of reducing delivery lead times. Manufacturers and service providers have used the same term to describe integration and partnership efforts with first- and second- tier suppliers to reduce cost and improve quality and delivery timing. Terms such as integrated purchasing strategy, integrated logistics, supplier integration, value chain management, supply base management, strategic supplier alliances, lean production, Just-In-Time (JIT) logistics, and supply chain synchronization have been used in the literature to address certain elements or stages of this new management philosophy (Tan et al., 1998; La Londe and Masters, 1994).             Conceptually, SCM includes all value-adding activities from the extraction of raw materials through the transformation processes and through delivery to the end user. SCM spans organizational boundaries and treats the organizations within the value chain as a unified virtual business entity (Scott and Westbrook 1991; New and Payne 1995). Baatz (1995) further expanded SCM to include recycling or reuse activities. In general, SCM seeks improved performance through elimination of waste and better use of internal and external supplier capabilities and technologies (Morgan and Monczka 1996).             The retailing industry has focused on different aspects of SCM, namely, location, transportation, and logistics issues. Indeed, the origin of supply chain management can be traced back to efforts to better manage the transportation and logistics functions (Fisher 1997; Lamb 1995; Whiteoak 1994; Turner 1993; MacDonald 1991; Stock and Lambert 1987). The wholesaling and retailing industries incorporate a logistics focus within their strategic decisions. In this respect, SCM is synonymous with integrated logistics systems that control the movement of goods from the suppliers to end customers without waste (Ellram 1991).             Moreover, integrated logistics systems seek to manage inventories through close relationships with suppliers and transportation, distribution, and delivery services. A goal is to replace inventory with frequent communication and sophisticated information systems to provide visibility and coordination. In this way, merchandise can be replenished quickly in small lot size and arrive where and when it is needed (Handfield 1994; Shapiro et al 1993). Firms that use advanced process technology to increase flexibility and involve manufacturing managers in strategic decision making alter the role of logistics in firm success (Tracey, 1998). A supply chain can reduce overall inventory while maximizing customer service by efficiently redistributing stock within the supply chain using effective postponement and speculation strategies (Pagh and Cooper 1998; Davis 1993; Scott and Westbrook 1991).             New logistics technology gives businesses a complex way to make things easier for their customers and suppliers. Within logistics industry, Dell’s system is recognized as one that takes advantage of technology to decrease storage and increase efficiency. The computer company’s supply and shipping networks exemplify the latest trend in logistics, that is, visibility. Companies with the money and foresight are making sure their inventories can be traced and tracked throughout their entire logistical operations, even if their systems are entirely outsourced. Executing a supply chain with full visibility gives companies better information to work with and a more agile system. Discussion             Dell has a better control of their operation which has reduced safety stocks and has operate faster to get cash-to-cash conversion cycles. By producing custom products at a rapid pace, the computer manufacturer receives payments from customer before it pays suppliers. Companies can do this only if there’s a short window between receiving an order and shipping it.              In addition, Dell’s customers can also keep track of their order status. They can trace their computer as is moves through assembly and testing, and can track its shipment due to the technology of major shipping companies.             The pulse of Dell’s execution effort centers on increasing business velocity and eliminating waste. Dell employees are constantly focused on driving down backlogs, promoting best practices, and creating synergies among adjacent processes as seen in cross-functional initiatives such as the design-for-manufacturability effort between manufacturing and R&D. This initiative successfully promoted product designs that are easier to assemble.             In 1994, Dell was a struggling second-tier PC maker. Like many others, the company ordered its components in advance and manufactured to inventory. Then Dell began to implement a new business model. It converted its operations to a build-to-order process, eliminated its inventories through a just-in-time system, and sold its products directly to consumers.             Dell carefully targeted corporate relationship customers that had predictable, budgeted needs and that wanted a pre-determined set of product models. The company also selected individual customers who were high-end, repeat purchasers with a preference for early technology adoption. Both account segments had the stable, predictable purchase patterns that Dell needed to make its joint build-product-to-order/buy-component-to-plan system work.             In connection with this, Dell developed a set of new operations capabilities in five crucial areas (Byrnes, 2005). First, it created the flawless make-to-order system that has been widely noted. Secondly, Dell worked at length to build an effective supplier management function in order to shorten component lead times and maintain the absolute quality standards required by the just-in-time operation. Third, Dell developed the “sell what you have” system that was essential to matching supply and demand. Fourth, it instituted an extraordinarily crisp set of product life cycle management capabilities that yielded great cost reductions and strategic advantage. Fifth, the company worked with its suppliers to shorten their product life cycles, extending the Dell business model to the whole channel. Together these operating capabilities formed a cornerstone for Dell’s business model.             Moreover, to maintain its rapid growth, Dell needs to hone its just-in-time process. Dell believes that the key to JIT is integrating with the suppliers into its operation.  It is important for the company to work with the suppliers to figure out how to minimize the supply chain and hold the least amount of inventory in it. Inventory can add costs, damage quality, slow production, and wreak havoc with Dell’s rapid response reputation. To guard against this, Dell has optimized its supply base and developed a tightly run system in which it “pulls” parts from suppliers just as they are needed for production.             Dell has manufacturing facilities in Austin; Limerick, Ireland; and Penang, Malaysia, each of which produces PCs on a JIT basis. In order to ensure the smooth flow of production supplies into these plants, Dell has developed a two-tiered strategy that employs different sourcing arrangements and delivery schedules for custom and commodity parts.             When Dell receives an order for a PC, it faxes or phones its requirements to suppliers who pick the proper parts and pack them in reusable bins with kanban cards attached. Trucks on a continuous loop between suppliers and Dell, known as a “milk run,” deliver the sorted parts to the computer maker’s plant for final assembly. This process frees Dell from having to manage inventories and the costs associated with them. However, Dell has made efforts to ensure that suppliers don’t get stuck with much inventory. The computer maker allows suppliers to participate in a “revolver program,” where they can sell parts stored at the warehouse to other customers.             In comparison with Dell’s supply chain management, Baxter, a hospital supply company, developed a powerful new type of partnership with its hospital customers. Baxter develops a strategy which is the vendor-managed inventory system, then called the Stockless System in managing its customer’s inventories within their hospital facilities (Byrnes, 2001). The hospital specifies its stock requirements for each ward; an on-site Baxter employee counts the stock in each ward each day or every few days; the employee enters this information into a hand-held device and transmits it to Baxter’s warehouse, where a replenishment order is derived; at the warehouse, the order is picked into ward-specific containers; that order is delivered the next day or in a few days directly to the ward, and the Baxter employee puts the stock away; finally, Baxter invoices the hospital. Baxter’s Stockless System created a powerful new channel that changed the ground rules for all other hospital supply companies. However, in the long run, the shift to service competition led to significant sales increases as conversions to Baxter products naturally occurred. The company also gained significant first-mover advantage as it tied up key accounts with this new channel.             In the case of Procter and Gamble (P&G), the company first partnered with Wal-Mart to develop a pioneering continuous replenishment system. Through this system, P&G replenishes Wal-Mart’s facilities without purchase orders based on the retailer’s product movement data. Based on this experience, P&G systematically shifted its strategic focus toward supply chain-based service innovation–and in the process transformed both the consumer products and retail industries. P&G also developed a careful account selection plan as part of an innovative product supply model. The company developed operating partnerships with major customers capable of linking electronically, taking full-truckload deliveries, and engaging in joint business process reorganization programs. Smaller accounts were shifted to master distributors, which in turn were selected for their ability to partner effectively with P&G.             P&G, for its part, developed operations capabilities in two key areas (Byrnes, 2001). First, it created a sweeping new set of industry-change programs such as ECR (efficient consumer response), CRP (customer requirements planning), and streamlined logistics. These programs required a solid new understanding of channel economics and the impact of supply chain innovation. Second, the company developed sophisticated IT ties to coordinate its product flow, enabling it to raise service levels to meet the needs of the new system.             With regards with Dell’s, supply chain competency of the company comprises of four qualities which includes demand management, internal collaboration, leveraging partners, and financial fundamentals (Metzer, 2004).             Dell’s direct model enables the company to excel at demand management. The process of selling directly to customers and building product to order creates opportunities for true real-time collaboration and synchronization between manufacturing and sales. By being in direct contact with the market, Dell can quickly see changes in customer demand. Synchronization allows Dell to respond more quickly to customer demand than its competitors can. Additionally, this true internal collaboration allows for highly accurate forecasts.             Another key aspect of Dell’s success is its ability to collaborate internally. This competency is driven by a culture that values information sharing and empowers all employees. At Dell, “direct” refers not only to how the company sells but also to how team members communicate and attack issues (Metzer, 2004).             Moreover, Dell’s culture and processes not only help the company collaborate internally but also help it leverage its business partners. Dell leverages its partners by linking suppliers’ planning and execution activities with Dell’s systems. The company uses information technology to gather and share a constant stream of data on supply and demand trends. On the supply side, Dell gathers real-time information about the inventory levels of its suppliers at various positions in the supply chain.             Finally, Dell’s entire supply chain is focused on fundamental business performance. Operating margin and not just profits or growth rate is the number that Dell cares about most to ensure long-term profitability.             Dell Inc.’s renowned direct sales model is regularly cited as the key reason for its overall competitive prowess. At Dell, supply chain management is truly viewed as a strategic capability; it drives coordination with, and in many instances it includes, activities such as marketing, sales, finance, and information technology. Conclusions and Recommendations             The back end of the supply chain is robust, flexible, and responsive in order for Dell to reap the real benefits of the customer side initiatives. Investing in front-end initiatives was not much use if Dell did not have strong internal capabilities and effective supplier networks. An efficient supply chain measures on-hand inventory in hours or days, not weeks of supply. Turn off the flow, and things grind to a halt pretty quickly. That’s a benefit when actual demand is driving the supply chain. If customers aren’t buying, you aren’t building costly and unnecessary inventory.             A strategic, goal oriented approach to purchasing and supply management is important. Effective change management involves developing an understanding of the current state, articulating a clear vision of the future state, and guiding the organization through a delicate transition period .             A responsive supply chain looks different when lack of supply is the issue. The flow stops just the same, but demand for the product may still be strong. Lack of inventory leaves no buffer between production and the customer. Logistics has closed the gap between source and production and between production and the customer. There are tremendous economic benefits to making capital–not just equipment–more efficient.             In an effort to establish a direct link with its customers, Dell should envision every product to become part of a limitless, wireless telecommunications network. To become more customer-centric customer demands concerning vehicle delivery were examined. Assuming customers were demanding “quick delivery,” many  companies like Dell  had begun initiatives that would enable two- to three-day delivery. What customers really valued was that they got the products they wanted, at the desired time and desired price. Supply chain strategies don’t have to be a liability with customers. They help deliver what the customer wants or expects on time and in the right place . So what is needed was a differentiated supply chain response for each customer. Dell should be  able to leverage the power of the Internet and bridge the gap between customer needs and Dell’s product offering. Dell should  also uses integrated supply in supply chain management which promises to simplify the operations and enhance the efficiencies of distributors. An important requirement of integrated supply is to develop a keen understanding of one’s cost structure and the customer’s as well. Understanding the customer’s costs will make selling an integrated supply relationship easier since the integrator can demonstrate customer savings to offset inventory management fees in the compensation negotiation (Varma, 1999).             Different organizations’ supply chain management utilizes different strategies. Supplier integration is a kind of supply chain management wherein select suppliers are integrated more deeply into the development of new products and provision of services. Most health care organizations fall under this category. Commodity/supplier leveraging is another kind of supply chain management and this represents the traditional approach to sourcing and buying. Price and volume are at the forefront, while adding product and supply chain value is usually of secondary importance in this kind of supply chain.             Lean supply chain management is planning, executing, and designing across multiple supply chain partners to deliver products of the right design, in the right quantity, at the right place, at the right time (Reeve, 2002). Dell  has plenty of work to do on the supply side, especially in supporting and enabling initiatives such as improving communications and collaboration capabilities across Dell’s vast network of suppliers.             Based on the research that was done, Dell can benefit further from some recommendations. For the Dell supply chain to adjust to higher and lower rates of demand, supply chain participants must have advance warning of the expected execution rates and changes in those rates. In rate-based planning and execution, this is the purpose of the forecast. The forecast is not used for releasing orders in anticipation of demand, except for parts with long lead-times. The forecast is used to prepare suppliers for changes in demand rates (Reeve, 2002). For example, if the demand rate is expected to increase in the future, suppliers must be warned in advance.  In this way, planning should significantly reduce the level of surprises at or near the build date. Minimizing surprises and disruptions, in turn, reduces the likelihood of misallocated capacity on the part of Dell  and its suppliers.             The ethical implications for this recommendation includes corporate challenges for Dell like adoption of standards, debates on the need to monitor and audit compliance on the suppliers, and ethical ways by which supplier activities can be integrated with the broader supplier management objectives of Dell. On the other hand, this recommendation can also strengthen the relationships of Dell with suppliers and licensees.             The customer-focused internal supply and demand integration used by Dell provides customers with what they want as the result of improved supply activities. There is integration of the Dell value chain through information sharing, decision making, and collaborative planning. The leveraging of suppliers jointly creates solutions and opportunities for Dell. Credit:ivythesis.typepad.com

The Term Supply Chain Management

Supply Chain Management Introduction The term supply chain management (SCM) was initially used in wholesaling and retaili...