Management and Organizational Behavior

Introduction

This assignment has two parts and the first part is to review the journal articles and summarize them and the second part is the research essay derived from the literature review.

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Assessment 2 (Part A)

Josephs, R. (2009) Effective Management Controls. Journal of MCB UP. 1 (4). Pp 30-33.

Purpose of Article

The basic purpose of control in an organization is to monitor activities and operations in a project to make sure that every task of the project is being carried out exactly as planned and also to check for any deviations so that they can be rectified. It is difficult for managers to keep an eye on every member of the project to monitor their activities so they need to exercise appropriate control to make sure that the project is completed smoothly and successfully. Managers need to exercise control to make sure that the actual activities are in proximity to the desired standards. The basic purpose is to enhance the budget through effective performance by exercising controls.

Method of Research: All secondary research.

Findings: Two divisions in the control types emerged after the research those include control before the event and after the event.

Significance: The topic is related to bakery manufacturing and that will need controls before and after the bread baking process completes. This research gives all types of effective control methods with two divisions that emerged prominently.

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Strengths of the article: The article is a detailed account of all control methods that can be applied in the case of bread manufacturing as well and overall it is a detailed account of types of control.

Weakness of the article: The article does not give real-life examples from organizations since it’s a general account so the guarantee of the application of all these controls is absent since the research does not test the effectiveness of the control methods proposed.

Anon (2004) Money Controls cashes in on continuous improvement: Team members become more motivated and empowered. Human Resource Management International Digest. 12 (5). Pp 14-16.

Purpose of the article: The article is about modern manufacturing techniques and continuous improvement so it includes Kaizen and Kanban. The research is based on a UK-based company Money Controls Ltd which has manufacturing sites in the USA as well. The entire manufacturing process including controls and motivation of team members is discussed but in the light of the company.

Method of Research: Descriptive research by distributing questionnaires and interviews from the management of the organization in focus.

Findings: The research findings are that the organization’s system of management and motivated employees and are truly an innovative company and they have come up with solutions for money fraud as well.

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Significance: The control system discussed in light of the organization and the manufacturing system in operation can be used for bread manufacturing for effective results.

Strengths of the article: The article includes all control systems and a manufacturing system that is effective in terms of a motivated workforce and adherence to standards with minimized frauds and discrepancies.

Weaknesses of the article: The article is limited to Money Controls Ltd only.

Han, D., Kwon, G., Bae, M., and Sung, H. (2002), ‘Supply chain integration in developing countries for foreign retailers in Korea: The Wal-Mart experience’, Computers & Industrial Engineering, 43, pp. 111-121.

Purpose of the article: The paper is about a company Rolland manufacturers that want to supply to Wal-Mart. The company wants to increase profitability by supplying clothes to Wal-Mart but in the UK so they aim to supply to Wal-Mart’s UK subsidiary ASDA. The company itself is not up to the mark and does not come up to ‘world-class’ standards and they wish to achieve that. The senior management visited a company in China that has agreed to increase the company’s production facilities. The company also aims to be one of the preferred suppliers to Wal-Mart because it will increase its profits. They wish to supply to Wal-Mart in the USA as well. But they might not be able to achieve these goals because already they are unable to meet deadlines and produce the best quality. This report is will help the management to take this strategic decision.

Method of Research: Descriptive research by distributing questionnaires and interviews from the management of the organization in focus.

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Findings: The Company is rather disorganized and poorly managed. The workforce is not motivated to work because of the continuous pressure on them to increase productivity. The supervisors can not control the batches and disturb productivity. Work in Progress (W.I.P) increases day by day and there is no proper system to manage the wastes. It is a common sight to witness the supervisors pushing a batch that is under process to get the urgent batches completed first and this is down even if it requires the workers to physically move material and reset the machines.

Significance: The manufacturer’s problems can be used as a precautionary control for the bread-making business.

Strengths of the article: The article includes other retailers and their problems as well that wish to sell to Wal-Mart.

Weaknesses of the article: The article is limited to Korean retailers only.

Assessment 2 (Part B)

Introduction

The basic types of control will be implemented on a baker making specialized bread for a well-known fast-food chain due to which there has to be adherence to standards and for that controls are essential by timing. The first and foremost thing in management is planning and managers need to set the foundations for planning to anticipate the right results. The managers need to plan effectively and there is a theory supporting it as well. In light of the paper by (Josephs, 2009) the effective control methods that apply to the bread manufacturing business are discussed further in the paper.

Scheme

Controls for Bread Manufacturing

These are some of the reasons for planning and they show the importance of planning. Since managers in this case study need to plan effectively to create a trickle-down effect in the organization. The first type of control will feed forward control which will be before the starting of the process to ensure the streamlining of all inputs and that everything is in place. This will be before the process where the entire manufacturing process is reviewed and checked for any discrepancies and then the process begins. This is important to make sure the bread is made according to set standards from the start. The establishment of standards to measure actual performance is the first step of the control process that sets a benchmark to check for any deviations. Standards are rules to measure performance and they are supposed to be followed religiously.

Standards can be physical in terms of quantity of any product or time etc and they can be monetary as well in terms of the profits, turnover, volumes, etc. These standards provide a base for analyzing actual performance against the set standards of performance (Koontz & Bradspies, 1982).

The second type is concurrent control which is control and checkpoints during the activity. The manufacturing process will have sensors and monitors at every important checkpoint. E.g. the dough will be kneaded first and then it will go further for shaping and this transition is an important checkpoint where a worker will check the dough is kneaded well without leaving any granules that might cause problems in shaping and baking. The second step will be shaping and here a worker will check but there will be sensors to sense any part of the dough not kneaded well which can be taken out by the worker and kneaded again.

Similarly, there will be checkpoints and sensors when the bread is shaped and goes for the baking to make sure each bread piece is baked well. Any other additions to the bread-like fruit will also be monitored. A major type of control in concurrent that will be used is the Kanban system. Kanban is yet another approach that is used to control the transfer of material between different stages of production. The word Kanban is a Japanese term and it means signboards or cards. It can be any sign to inform employees in the previous stage of production that a particular part must be taken from stocks and sent to a specific destination (conveyance kanbans), to tell employees in a particular operation that they can begin production (production kanbans) and to instruct external suppliers to send raw material to a destination (vendor kanbans) (Anon, 2004).

The last step will be feedback control where the baked bread is checked for standards and if it’s baked well. The bread sample will be tested by the worker to make sure it’s done well. Certain control standards will be set like quality, quantity, and time of the process. These will form the basis of all controls and checkpoints to make sure the bread is done perfectly. A major control standard will be workplace organization and the five ‘S’ philosophy must be adapted to organize the workplace. They are as follows:

  • Sorting: distinguish between the needed items and the unwanted items. This helps to organize.
  • Straighten: To keep all the needed items in the right place. This helps to make things orderly.
  • Sustain: discipline is essential. Operations must flow in a manner as decided upon or organized.
  • Sweep: the workplace must be regularly swept and cleanliness is essential.
  • Standardise: to exercise control and all the policies must be intact. There must be no break in the set standards of the system.

To be more efficient the suggested system for the manufacturing will be a lean production system with the assembly line. Lean operations will improve their manufacturing capabilities and total supply chain. This will also enable them to respond quickly to market demands. Lean means the elimination of waste and things that do not add value to the product. Types of wastes in Rolland and generally are as follows:

  • Time spent waiting for tools, parts, and raw material.
  • Time spent transporting equipment and parts required to complete a repair.
  • Inappropriate processes like mistakes in entering data etc.
  • Inventory or queue problems since obsolete inventory must not be stored and hidden inventory occupies space.
  • Pace of people and machines.
  • Defects or errors.
  • Overdesign like excessive repair or unnecessary work.
  • Poor utilization of space.

TQM is a method designed to prevent errors, such as poor quality products, from happening. The business is organized so that the manufacturing process is investigated at every stage. TQM includes quality chains (Integration of the series of suppliers and customers), company policy and accountability (Starts at the top and spreads down to every employee in the business who is individually responsible for anything he/she does.), control (quality audits) and monitoring the process (to find possible improvements through a statistical process control that collects data and presents it in diagrams or graphs. It reduces variability in production) (Hayes &Upton, 1998).

Another suggestion is to have a maintenance department that should be automated with a Computerized Maintenance Management System (CMMS). This will make work more efficient. A value stream map will help identify waste and improvement opportunities. The data (time, errors, distances, queues, and key issues) available from the CMMS must be analyzed to check for any discrepancies and any opportunities for improvement (Flamholtz, 1979).

Other suggestions for controls in bread manufacturing are as follows (Ouchi, 1979):

Time-based management is yet another approach for management that involves reducing the time businesses take to complete certain tasks like launching new products, etc.

Empowerment is another approach that aims to give employees the power to make decisions in a business. This motivates employees and results in dedicated and loyal workers.

Team working is another approach that introduces working in teams in organizations since teams are more productive than single workers.

Cellular manufacturing is also an approach used by businesses with a variety of products. This divides the workplace into “cells.” Each cell focuses on the production of a particular product family.

Managing by Numbers is yet another approach that includes five basic steps:

  1. Are we achieving superior customer relationships?
  2. Do we know what we are good at, and how to obtain the utmost mileage from that excellence?
  3. Are we sharing the rewards among those who created the achievement?
  4. Can we respond flexibly to political, economic, sociological, and technological change?
  5. Do we make expert use of external ‘expert partners’?

Control is the ultimate link in the functional chain of management because deviations are inevitable. A project is planned properly and all the standards are set, all the members of the project are directed and motivated appropriately and goals are set but still, deviations are bound to occur. An effective control system helps to monitor and then avoid these problems to achieve the desired results.

The control process begins from the planning of a project and it depends on the manner the activities have been delegated throughout the members responsible for the project. The exercise of effective control is essential in projects because it monitors, prevents, and then helps to eradicate any abuse of authority in the delegated activities. Control is an essential ingredient for the smooth completion of a project because it helps to maintain discipline and decorum to entice the best abilities out of every person involved to achieve the desired outcome (Merchant, 1982).

Retailers understand that logistics and supply chain management have been automated and these new technologies plus methods of business have to be adapted to stay one step ahead. These can be implemented in the bread manufacturing system. Retailers can incorporate the supply chain and logistics for the following reasons:

  • A transparent and synchronized supply chain will enable an automated system that gives signals to suppliers for replenishment of stock. An almost real-time system can be implemented to support the supply chain and it enhances relationships with partners as well.
  • It will help in streamlining all retail operations.
  • It will also help in creating the right mix of products to give more importance to high-value customers and separate them from the low-value or no-value customers.
  • I will save lead times and wastes.

Logistics and SCM help retailers to include the consumer in the supply chains, manage product life cycles, promotional planning, plan for seasonal products, category management, cost-effective supply channels, and planning capacities at the store level (Hendrickson et al, 2001).

Conclusion

This assignment is based on the topic of Controls and relevant literature has been used as a basis of applying the controls to a bread manufacturing process supplying to a fast-food chain that requires adherence to standards. The various types of controls have been implemented and the control system’s importance has been discussed.

Bibliography

Anon (2004) Money Controls cashes in on continuous improvement: Team members become more motivated and empowered. Human Resource Management International Digest. 12 (5). Pp 14-16.

Flamholtz, E. (1979). Organizational Control of Systems as a Managerial Tool. California Management Review. P.55.

Han, D., Kwon, G., Bae, M., and Sung, H. (2002), ‘Supply chain integration in developing countries for foreign retailers in Korea: The Wal-Mart experience’, Computers & Industrial Engineering, 43, pp. 111-121.

Hayes, R. H., and Upton, D. M. (1998), ‘Operations-based strategy’, California Management Review, Vol. 40, No. 4. pp. 8-25.

Hendrickson, M., Heffernan, W. D., Howard, P. H. and Judith B. Heffernan (2001), ‘Consolidation in food retailing and dairy, British Food Journal, Vol. 103 No. 10, 2001, pp. 715-728.

Josephs, R. (2009) Effective Management Controls. Journal of MCB UP. 1 (4). Pp 30-33.

Koontz, H. & R.W. Bradspies (1972) Managing through feedforward control. Business Horizons. Pp. 25-36.

Merchant, K.A. (1982). The Control Function of Management. Sloan Management Review. Pp. 43-55.

Ouchi, W.G. (1979). A Conceptual Framework for the Design of Organizational Control Mechanisms. Management Science. Pp. 833-838.

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