Question 6

CHALLENGE CASE E a new approach to managembly line to make working for How Management Innovation keeps Ford Moving Ahead ver since Ford Motor Company's early years, innovative management has given the company a competitive edge. Ford introduced the Model T in 1908, it quickly became popular, but building it was expensive and slow. Because workers brought parts to a chassis remaining in one spot, it took more than 12 hours to put together each car. Henry Ford decided to set up the work differently: The chassis would be pulled along the floor to the parts and the workers. By 1914, improvements to the moving assembly line had trimmed the assembly time to 93 minutes per car. But Ford saw more than a production process: he saw systems and set up formal financial methods and controls to 3 workers. He used the effi help the company function more efficiently. ciency gained from the assembly li Today. Ford technology has entered the twenty fint the company more attractive so that workers would be less century. Under the leadership of Ford's current CEO, Alan likely to quit. He more than doubled wages to $5 per day and Mulally, Ford is using computer technology and analytic shortened the nine hour workday by an hour. He also set up tools to predict consumer preferences and precisely schedule training facilities where workers could learn to manage their production to meet that demand. Mulally also demonstrates money. Besides improving employee relations, these efforts modern thinking in the way he manages people. He sees his made it possible for Ford's workers to become Ford customers role as creating an environment in which everyone focuses on as well moving the organization forward. Employees are empowered Years later, the founder's son, Henry Ford II, also intro to act when they see a problem. This includes management duced management innovations. During World War II, the negotiating with union representatives to find ways to make need to move people and materials around the world to win facilities work more efficiently rather than simply closing un the war fueled the innovation of applying analytic methods profitable operations. In this environment, employees share in to management problems. After the war, Ford brought the the organization's successes. Ford recently reported strong earn creators of the government's management information system ings for the year and announced that employees would receive a to his company so that they could apply their methods there record profit sharing payment of more than $8,000 each.! These whix kids" studied Ford's informal record keeping THE COMPREHENSIVE MANAGEMENT Ford continues to move ahead under the leadership SKILL CHALLENGE of CEO, Alan Mulally, by using twenty-first century The Challenge Case illustrates many different technology and modern thinking in the management comprehensive management skill challenges that of its employees. Ford Motor Company's management must strive to overcome. For Ford to be successful, management must collectively apply insights from the classical behavioral, management Science, contingency, systems, and learning organization approaches to managing The remaining material in this appendix explains these approaches and helps you develop your comprehensive management skill After studying appendix concepts. read the Challenge Case Summary at the end of the appendix to gain insights about using comprehensive management skill at Ford Chapter 1 focused primarily on defining management. This appendix presents various approaches to analyzing and reacting to management situations, each characterized by a different method of analysis and a different type of recommended action Jord 445 APPENDIX 1 Managing 459 Tips for Managing around the Globe IBM's Crowded Leaming Environment BM would meet most definitions of a learning orga- nization. The global technology and consulting com- pany relies on constant innovation to fulfill its mission to help clients build Information systems that enable them to meet their goals. IBM relies on its 400,000 employees in over 170 countries to share their technol ogy and business expertise to generate meaningful solutions Franoise LeGoues, who heads 1BM's CIO Lab, devised an engaging way to encourage creativity and the transfer of knowledge across national borders Her program, called iFundit, invites Information tech nology (IT) employees to submit ideas for improving IBM's Internal activities. Every IT employee receives up to $2,000 to spend on any of the projects that seem promising. Following the example of "crowdfunding websites such as Kickstarter and Indiegogo, any pro ect that attracts a minimum level of funds ($25,000) is approved for development. Among more than 150 winning ideas are an app for using IBM's social media network to manage projects and a method for tracking how employees are using the company's apps. 2. Shared vision --All organization members have a common view of the purpose of the organization and a sincere commitment to accomplish the purpose. 3. Challenging of mental models --Organization members routinely challenge the way business is done and the thought processes people use to solve organizational problems 4. Team learning --Organization members work together, develop solutions to new problems together, and apply the solutions together. Working as teams rather than as individuals will help organizations gather collective force to achieve organizational goals. 5. Personal mastery --All organization members committed to gaining a deep and rich understanding of their work. Such an understanding will help organizations successfully overcome important challenges that confront them. Overall, managers attempting to build learning organizations face many different challenges. One such challenge involves ensuring that an organization changes as necessary. Changes in the external environment, like an increasingly global marketplace, rapid technological advances, and growing pressure to do more with less, all require managers to implement needed changes as they build their learning organizations, CHALLENGE CASE SUMMARY s you learned in the Challenge Case at the begin The classical approach to management recommends that ning of this appendix, a large company such as managers continually strive to increase organizational efficiency and production, so it would likely be of great use to CEO Alan ent kinds of activities. Managing such an enterprise is a Mulally in his quest to improve efficiency at Ford. At the lower level, scientific management seeks to identify the one best way to complex process. Over the years, scientists and observers perform tasks as efficiently as possible. It may involve the selec- of management have proposed various ways to under- tion of tools and the design of tasks that will allow workers to pro stand what managers can and should do to help their duce the maximum amount they can without sacrificing safety organizations achieve their goals. Considering this history and quality. Applications of scientific management may include of management theory can suggest practical ideas for how motion studies, scheduling charts, and rewards for innovation Another classical approach involves the comprehensive Ford's managers can help their company succeed in a chal- analysis of management, notably the work Henri Fayol lenging environment Fayol defined the manager's job as a combination of planning, 460 APPENDIX 1 Managing organizing, commanding, and controlling. He also specified many principles of effective management--for example, that work should be divided so that individuals can specialize and that authority should be delegated along with the responsibility for completing tasks Most modern organizations, including Ford, would be inter ested in the behavioral approach to management, which empha sizes increasing production through an understanding of people. It requires the application of human relations skill, or the ability to work with people in a way that enhances organizational suc cess. This approach stresses the importance of treating people humanely and motivating them by setting up a rewarding work environment in which employees care about achieving work related goals. For example, Douglas McGregor emphasized his finding that employees can be self-directed, accept responsibility and consider work as natural as play The management science approach suggests that managers can best improve the organization by using the scientific method and mathematical techniques to solve operational problems by observing the system, constructing a model of it, deducing how the system will behave under new conditions, and testing the model with experiments. Today's widespread availability of com puters makes management science techniques readily available Popular applications include inventory control and probability models for decision making. Ford uses such methods to make complex decisions such as which features to include in the vehicles it manufactures each week and which new products to introduce The contingency approach to management emphasizes that what managers do in practice depends on the circumstances in which managers are acting It reminds managers that they must consider practical realities when deciding how to act. At Ford, if Alan Mulally expects management and workers to be partners in operating plants efficiently, he has to consider practicalities such as costs and union members willingness to change work rules. For example, if it is possible to operate profitably and union representatives trust the process, then Mulally can move forward with his plan to assemble vehicles in the United States. The system approach to management regards each organi xation as a system in which interdependent parts function as a whole. A business is an open system because it continually inter- acts with its environment. When managers such as Mulally want to make a change in their department or company, they need to consider the impact of the change on all parts of the system. A change in product design, for example, will affect the materials that need to be ordered the way the product is produced, and customers' opinions of the product, among many other elements of the Ford "system. A new approach to management is the learning organization approach. A learning organisation excels at creating acquiring, and transferring knowledge and in modifying behavior to reflect new knowledge For Ford to be a learning organization, its management needs to build systems thinking, create a shared vision, challenge the organization's mental models, cultivate team learning, and get all employees committed to personal mastery of their work MyManagementLab: Assessing Your Management skill If your instructor has assigned this activity, go to mymanagementlab.com and decide what advice you would give a Ford manager. DEVELOPING MANAGEMENT SKILL This section is specially designed to help you develop management skills. An individual's management skill is based on an understanding of management concepts and on the ability to apply those concepts in various organizational situations. The following activities are designed both to heighten your understanding of management concepts and to develop your ability to apply those concepts in a variety of organizational situations. CLASS PREPARATION AND PERSONAL STUDY To help you prepare for class, perform the activities outlined in this section. Performing these activities will help you to significantly enhance your classroom performance Reflecting on Target Skill page 444, this appendix opens by presenting a target management skill along with a list of related objectives outlining knowledge and understanding that you should aim to acquire related to that skill. Review this target skill and the list of objectives to make sure that you've acquired all pertinent information within the appendix. If you do not feel that you've reached a particular objectivels), study related appendix coverage until you do APPENDIX 1 Managing 461 Know Key Terms Understanding the following key terms is critical to your understanding of appendix material. Define each of these terms. Refer to the page(s) referenced after a term to check your definition or to gain further insight regarding the term. classical approach to human relations skill 453 system 456 management 446 management science closed system 458 scientific management 447 approach 454 open system 456 motion study 448 contingency approach to management system 456 behavioral approach to management 455 triangular management 457 management 451 system approach to learning organization 458 human relations movement 453 management 456 Know How Management Concepts Relate This section comprises activities that will further sharpen your understanding of management concepts. Answer these essay questions as completely as possible. A1-1. How will you be able to use the classical approach to A1-3. Discuss the triangular management model as a tool management in your job as a manager? for organizing how a manager should think about the A1-2. How does Henri Fayol's contribution to manage. management process ment differ from the contributions of Frank and Lillian Gilbreth? MANAGEMENT SKILLS EXERCISES Leaming activities in this section are aimed at helping you develop comprehensive management skills. Cases How Management Innovation keeps By evolving along with shipping needs, UPS has come Ford Moving Ahead far from its 1907 origin as a Seattle messenger service run by a pair of teenagers with bicycles. Its evolution is "How Management Innovation keeps Ford Moving Ahead" reflected in its name changes: from American Messenger (p. 00) and its related Challenge Case Summary were written Company to Merchants Parcel Delivery to United Parcel to help you understand the management concepts contained Service to UPS. During that time, the company has shifted in this appendix. Answer the following discussion questions from running errands to placing delivery workers in stores; about the introductory case to explore how fundamental from serving just Seattle to acquiring other businesses management concepts can be applied to a company such as and expanding its service to locations across the United a Company States and around the world; from carrying single orders on bicycles to shipping by truck and air and from provid A1-4. Which of the approaches to management discussed ing transportation alone to helping companies plan the best in this appendix has each of Ford's CEOs (Henry Ford, ways to fulfill orders. Henry Ford II, and Alan Mulally seemed to emphasize Today UPS is a multibillion-dollar global business with the most in his work as a manager? Explain. a reputation for highly efficient, reliable service. Maintaining A1-5. Which of the approaches to management discussed those qualities while growing rapidly is difficult UPS's man in this appendix has each of Ford's CEOs seemed to agers tackle the challenge by using meticulous planning, emphasize the least in his work as a manager? Explain advanced technology, and strict rules. Technology took on A1-6. Mulally has a reputation as a successful manager. prominent role at UPS in the 1990s when people began What advice would you give him so that he can ordering products online, and sellers turned to UPS to become an even more successful manager at Ford? deliver those orders. UPS then introduced its handheld com puter, the Delivery Information Acquisition Device, which all drivers carry to transmit up-to-the-minute information Managing UPS in an Internet Economy about deliveries and to receive notices of changes in pickup schedules and traffic problems to avoid. Next, the company Read the following case and answer the questions that for installed GPS sensors on delivery trucks to ensure that work low. Studying this case will help you better understand howers follow predetermined routes and schedules. UPS has the history of an organization affects its current strategy. This recently begun rolling out a computer system that analyzes case examines UPS data and calculates the most efficient route for each driver 462 APPENDIX 1 Managing 1 on each day. Even a savings of just one mile per day spread Packages arrived in droves at the sorting facility-too many, across all the drivers, would generate yearly savings of in fact, to be accommodated inside the facility-and some $50 million Christmas gifts did not arrive on time after all. Work requirements also have a prominent role at UPS These holiday shipping problems were costly. Between Drivers must follow 340 rules to ensure that they deliver effi. the extra resources needed to meet the demand and the cient, polite service, and the company expects them to use refunds paid for the missed deadlines, UPS's costs out- time and fuel efficiently without sacrificing customer service weighed the revenues from the extra deliveries. Managers, However, the company does consider employee motivation. however, are determined to improve the company's planning For example, the people behind UPS's new routing system and are looking at all options, including improved tracking Involved drivers in the planning process. systems, stricter terms for retailers, and an expansion of This need for control was severely tested during the hol warehouse facilities. iday shopping season of December 2013. Scott Abell. UPS's peak planning manager, and his team of 11 planners spent Questions most of that year forecasting package volume and figuring out how to get packages to homes by Christmas Eve, even if A1-7. Assume you are a UPS manager responsible for a bad weather disrupted transportation. In 2004, for example, Warehouse or for deliveries in a specific region. Based damage from an ice storm in Louisville, home of the con on the description of UPS, which of Henri Fayol's 14 tral sorting facility, required that packages be loaded by principles of management would be most pertinent to hand. Abell and his team worked alongside the warehouse you? Why? employees to get the job done.) Abell determined that UPS A1-8. How can the systems approach to management help was prepared, but then several online retailers began offer Scott Abell in his role as peak planning manager? ing next day delivery on purchases made up until 11 p.m. A1-9. What do you imagine it was like to work at UPS in on December 23. That promotion drove the number of pack 1950? How do you think working conditions have ages to be about double what Abell's team had forecasted. changed at UPS since then? Experiential Exercises Analyzing a Golf Swing people should be working--that is, how many activities of various sorts they should be performing per hour. Using a Directions. Read the following scenario and then perform the stopwatch and a computer, you would evaluate what people listed activities. Your instructor may want you to perform the do during a typical workday and then make suggestions to activities as an individual or within groups. Follow all of your their supervisors for how the employees can improve their instructor's directions carefully. activities. Although you would probably enjoy seeing how Frank and Lillian Gilbreth recommended improving a piece of scrap metal is molded into a finished tool you worker efficiency and effectiveness by searching for the one might not enjoy pushing people to work harder because of best way to perform work tasks. To discover this one best the results of your studies. The salary and benefits seem fine way, the Gilbreths would perform motion studies, which to you. You've been with the company for two years and think would pinpoint the best behaviors to use. For example, as that eventually you'd like to be president of this company a result of one of the Gilbreths' motion studies, the number Would you take the job? Why? Why not? of motions needed to lay brick was reduced from 12 to 2 Obviously, the effectiveness and efficiency of bricklayers were significantly increased as a result of the motion study, Building Your Management To gain some experience in performing a motion study. Skills Portfolio find two photos on the Internet, one photo showing profes sional golfer Phil Mickelson's golf swing and follow through Your Management skills Portfolio is a collection of activi- and the other photo showing an amateur's golf swing and ties specially designed to demonstrate your management follow through knowledge and skill. Be sure to save your work. Taking your Activity Compare Phil Mickelson's swing and follow. printed portfolio to an employment interview could be help through to those of the amateur How are they the same? ful in obtaining a job How are they different? Refer to specific behaviors in your Management skills at Croes. Read the following about The portfolio activity for this appendix is Comprehensive comparison Crocs, Inc., and perform the activities that follow. Activity 2: What advice would you give the amateur for Crocs, Inc., started when three Boulder, Colorado, residents improving his or her success in goll? decided to develop and market an innovative type of footwear Activity 3: What are the strengths and the limitations of called Crocs shoes. Although originally intended as a boat your motion study results? ing/outdoor shoe because of its slip-resistant, nonmarking sole, by 2003 Crocs had become a bona fide phenomenon, univer You and Your Career sally accepted as an all-purpose shoe for comfort and fashion During 2003-2004, the Crocs company focused on You have just heard about an opening for a job as a time accommodating remarkable growth while maintaining con study specialist in a company that manufactures plumb-trol of the expansion. The company expanded its product ing tools. Your main job would be to figure out how hard line, added warehouses and shipping programs to provide 4- How system approach can be used by Ford to be effective and efficient? 5- As CEO of Ford, how would you think Learning organization approach be useful for FORD (or would it?) by analyzing the elements of learning organization approach? 6. After analysis of the all above approaches which approach you would have used to increase success of the company hence yours? CHALLENGE CASE E a new approach to managembly line to make working for How Management Innovation keeps Ford Moving Ahead ver since Ford Motor Company's early years, innovative management has given the company a competitive edge. Ford introduced the Model T in 1908, it quickly became popular, but building it was expensive and slow. Because workers brought parts to a chassis remaining in one spot, it took more than 12 hours to put together each car. Henry Ford decided to set up the work differently: The chassis would be pulled along the floor to the parts and the workers. By 1914, improvements to the moving assembly line had trimmed the assembly time to 93 minutes per car. But Ford saw more than a production process: he saw systems and set up formal financial methods and controls to 3 workers. He used the effi help the company function more efficiently. ciency gained from the assembly li Today. Ford technology has entered the twenty fint the company more attractive so that workers would be less century. Under the leadership of Ford's current CEO, Alan likely to quit. He more than doubled wages to $5 per day and Mulally, Ford is using computer technology and analytic shortened the nine hour workday by an hour. He also set up tools to predict consumer preferences and precisely schedule training facilities where workers could learn to manage their production to meet that demand. Mulally also demonstrates money. Besides improving employee relations, these efforts modern thinking in the way he manages people. He sees his made it possible for Ford's workers to become Ford customers role as creating an environment in which everyone focuses on as well moving the organization forward. Employees are empowered Years later, the founder's son, Henry Ford II, also intro to act when they see a problem. This includes management duced management innovations. During World War II, the negotiating with union representatives to find ways to make need to move people and materials around the world to win facilities work more efficiently rather than simply closing un the war fueled the innovation of applying analytic methods profitable operations. In this environment, employees share in to management problems. After the war, Ford brought the the organization's successes. Ford recently reported strong earn creators of the government's management information system ings for the year and announced that employees would receive a to his company so that they could apply their methods there record profit sharing payment of more than $8,000 each.! These whix kids" studied Ford's informal record keeping THE COMPREHENSIVE MANAGEMENT Ford continues to move ahead under the leadership SKILL CHALLENGE of CEO, Alan Mulally, by using twenty-first century The Challenge Case illustrates many different technology and modern thinking in the management comprehensive management skill challenges that of its employees. Ford Motor Company's management must strive to overcome. For Ford to be successful, management must collectively apply insights from the classical behavioral, management Science, contingency, systems, and learning organization approaches to managing The remaining material in this appendix explains these approaches and helps you develop your comprehensive management skill After studying appendix concepts. read the Challenge Case Summary at the end of the appendix to gain insights about using comprehensive management skill at Ford Chapter 1 focused primarily on defining management. This appendix presents various approaches to analyzing and reacting to management situations, each characterized by a different method of analysis and a different type of recommended action Jord 445 APPENDIX 1 Managing 459 Tips for Managing around the Globe IBM's Crowded Leaming Environment BM would meet most definitions of a learning orga- nization. The global technology and consulting com- pany relies on constant innovation to fulfill its mission to help clients build Information systems that enable them to meet their goals. IBM relies on its 400,000 employees in over 170 countries to share their technol ogy and business expertise to generate meaningful solutions Franoise LeGoues, who heads 1BM's CIO Lab, devised an engaging way to encourage creativity and the transfer of knowledge across national borders Her program, called iFundit, invites Information tech nology (IT) employees to submit ideas for improving IBM's Internal activities. Every IT employee receives up to $2,000 to spend on any of the projects that seem promising. Following the example of "crowdfunding websites such as Kickstarter and Indiegogo, any pro ect that attracts a minimum level of funds ($25,000) is approved for development. Among more than 150 winning ideas are an app for using IBM's social media network to manage projects and a method for tracking how employees are using the company's apps. 2. Shared vision --All organization members have a common view of the purpose of the organization and a sincere commitment to accomplish the purpose. 3. Challenging of mental models --Organization members routinely challenge the way business is done and the thought processes people use to solve organizational problems 4. Team learning --Organization members work together, develop solutions to new problems together, and apply the solutions together. Working as teams rather than as individuals will help organizations gather collective force to achieve organizational goals. 5. Personal mastery --All organization members committed to gaining a deep and rich understanding of their work. Such an understanding will help organizations successfully overcome important challenges that confront them. Overall, managers attempting to build learning organizations face many different challenges. One such challenge involves ensuring that an organization changes as necessary. Changes in the external environment, like an increasingly global marketplace, rapid technological advances, and growing pressure to do more with less, all require managers to implement needed changes as they build their learning organizations, CHALLENGE CASE SUMMARY s you learned in the Challenge Case at the begin The classical approach to management recommends that ning of this appendix, a large company such as managers continually strive to increase organizational efficiency and production, so it would likely be of great use to CEO Alan ent kinds of activities. Managing such an enterprise is a Mulally in his quest to improve efficiency at Ford. At the lower level, scientific management seeks to identify the one best way to complex process. Over the years, scientists and observers perform tasks as efficiently as possible. It may involve the selec- of management have proposed various ways to under- tion of tools and the design of tasks that will allow workers to pro stand what managers can and should do to help their duce the maximum amount they can without sacrificing safety organizations achieve their goals. Considering this history and quality. Applications of scientific management may include of management theory can suggest practical ideas for how motion studies, scheduling charts, and rewards for innovation Another classical approach involves the comprehensive Ford's managers can help their company succeed in a chal- analysis of management, notably the work Henri Fayol lenging environment Fayol defined the manager's job as a combination of planning, 460 APPENDIX 1 Managing organizing, commanding, and controlling. He also specified many principles of effective management--for example, that work should be divided so that individuals can specialize and that authority should be delegated along with the responsibility for completing tasks Most modern organizations, including Ford, would be inter ested in the behavioral approach to management, which empha sizes increasing production through an understanding of people. It requires the application of human relations skill, or the ability to work with people in a way that enhances organizational suc cess. This approach stresses the importance of treating people humanely and motivating them by setting up a rewarding work environment in which employees care about achieving work related goals. For example, Douglas McGregor emphasized his finding that employees can be self-directed, accept responsibility and consider work as natural as play The management science approach suggests that managers can best improve the organization by using the scientific method and mathematical techniques to solve operational problems by observing the system, constructing a model of it, deducing how the system will behave under new conditions, and testing the model with experiments. Today's widespread availability of com puters makes management science techniques readily available Popular applications include inventory control and probability models for decision making. Ford uses such methods to make complex decisions such as which features to include in the vehicles it manufactures each week and which new products to introduce The contingency approach to management emphasizes that what managers do in practice depends on the circumstances in which managers are acting It reminds managers that they must consider practical realities when deciding how to act. At Ford, if Alan Mulally expects management and workers to be partners in operating plants efficiently, he has to consider practicalities such as costs and union members willingness to change work rules. For example, if it is possible to operate profitably and union representatives trust the process, then Mulally can move forward with his plan to assemble vehicles in the United States. The system approach to management regards each organi xation as a system in which interdependent parts function as a whole. A business is an open system because it continually inter- acts with its environment. When managers such as Mulally want to make a change in their department or company, they need to consider the impact of the change on all parts of the system. A change in product design, for example, will affect the materials that need to be ordered the way the product is produced, and customers' opinions of the product, among many other elements of the Ford "system. A new approach to management is the learning organization approach. A learning organisation excels at creating acquiring, and transferring knowledge and in modifying behavior to reflect new knowledge For Ford to be a learning organization, its management needs to build systems thinking, create a shared vision, challenge the organization's mental models, cultivate team learning, and get all employees committed to personal mastery of their work MyManagementLab: Assessing Your Management skill If your instructor has assigned this activity, go to mymanagementlab.com and decide what advice you would give a Ford manager. DEVELOPING MANAGEMENT SKILL This section is specially designed to help you develop management skills. An individual's management skill is based on an understanding of management concepts and on the ability to apply those concepts in various organizational situations. The following activities are designed both to heighten your understanding of management concepts and to develop your ability to apply those concepts in a variety of organizational situations. CLASS PREPARATION AND PERSONAL STUDY To help you prepare for class, perform the activities outlined in this section. Performing these activities will help you to significantly enhance your classroom performance Reflecting on Target Skill page 444, this appendix opens by presenting a target management skill along with a list of related objectives outlining knowledge and understanding that you should aim to acquire related to that skill. Review this target skill and the list of objectives to make sure that you've acquired all pertinent information within the appendix. If you do not feel that you've reached a particular objectivels), study related appendix coverage until you do APPENDIX 1 Managing 461 Know Key Terms Understanding the following key terms is critical to your understanding of appendix material. Define each of these terms. Refer to the page(s) referenced after a term to check your definition or to gain further insight regarding the term. classical approach to human relations skill 453 system 456 management 446 management science closed system 458 scientific management 447 approach 454 open system 456 motion study 448 contingency approach to management system 456 behavioral approach to management 455 triangular management 457 management 451 system approach to learning organization 458 human relations movement 453 management 456 Know How Management Concepts Relate This section comprises activities that will further sharpen your understanding of management concepts. Answer these essay questions as completely as possible. A1-1. How will you be able to use the classical approach to A1-3. Discuss the triangular management model as a tool management in your job as a manager? for organizing how a manager should think about the A1-2. How does Henri Fayol's contribution to manage. management process ment differ from the contributions of Frank and Lillian Gilbreth? MANAGEMENT SKILLS EXERCISES Leaming activities in this section are aimed at helping you develop comprehensive management skills. Cases How Management Innovation keeps By evolving along with shipping needs, UPS has come Ford Moving Ahead far from its 1907 origin as a Seattle messenger service run by a pair of teenagers with bicycles. Its evolution is "How Management Innovation keeps Ford Moving Ahead" reflected in its name changes: from American Messenger (p. 00) and its related Challenge Case Summary were written Company to Merchants Parcel Delivery to United Parcel to help you understand the management concepts contained Service to UPS. During that time, the company has shifted in this appendix. Answer the following discussion questions from running errands to placing delivery workers in stores; about the introductory case to explore how fundamental from serving just Seattle to acquiring other businesses management concepts can be applied to a company such as and expanding its service to locations across the United a Company States and around the world; from carrying single orders on bicycles to shipping by truck and air and from provid A1-4. Which of the approaches to management discussed ing transportation alone to helping companies plan the best in this appendix has each of Ford's CEOs (Henry Ford, ways to fulfill orders. Henry Ford II, and Alan Mulally seemed to emphasize Today UPS is a multibillion-dollar global business with the most in his work as a manager? Explain. a reputation for highly efficient, reliable service. Maintaining A1-5. Which of the approaches to management discussed those qualities while growing rapidly is difficult UPS's man in this appendix has each of Ford's CEOs seemed to agers tackle the challenge by using meticulous planning, emphasize the least in his work as a manager? Explain advanced technology, and strict rules. Technology took on A1-6. Mulally has a reputation as a successful manager. prominent role at UPS in the 1990s when people began What advice would you give him so that he can ordering products online, and sellers turned to UPS to become an even more successful manager at Ford? deliver those orders. UPS then introduced its handheld com puter, the Delivery Information Acquisition Device, which all drivers carry to transmit up-to-the-minute information Managing UPS in an Internet Economy about deliveries and to receive notices of changes in pickup schedules and traffic problems to avoid. Next, the company Read the following case and answer the questions that for installed GPS sensors on delivery trucks to ensure that work low. Studying this case will help you better understand howers follow predetermined routes and schedules. UPS has the history of an organization affects its current strategy. This recently begun rolling out a computer system that analyzes case examines UPS data and calculates the most efficient route for each driver 462 APPENDIX 1 Managing 1 on each day. Even a savings of just one mile per day spread Packages arrived in droves at the sorting facility-too many, across all the drivers, would generate yearly savings of in fact, to be accommodated inside the facility-and some $50 million Christmas gifts did not arrive on time after all. Work requirements also have a prominent role at UPS These holiday shipping problems were costly. Between Drivers must follow 340 rules to ensure that they deliver effi. the extra resources needed to meet the demand and the cient, polite service, and the company expects them to use refunds paid for the missed deadlines, UPS's costs out- time and fuel efficiently without sacrificing customer service weighed the revenues from the extra deliveries. Managers, However, the company does consider employee motivation. however, are determined to improve the company's planning For example, the people behind UPS's new routing system and are looking at all options, including improved tracking Involved drivers in the planning process. systems, stricter terms for retailers, and an expansion of This need for control was severely tested during the hol warehouse facilities. iday shopping season of December 2013. Scott Abell. UPS's peak planning manager, and his team of 11 planners spent Questions most of that year forecasting package volume and figuring out how to get packages to homes by Christmas Eve, even if A1-7. Assume you are a UPS manager responsible for a bad weather disrupted transportation. In 2004, for example, Warehouse or for deliveries in a specific region. Based damage from an ice storm in Louisville, home of the con on the description of UPS, which of Henri Fayol's 14 tral sorting facility, required that packages be loaded by principles of management would be most pertinent to hand. Abell and his team worked alongside the warehouse you? Why? employees to get the job done.) Abell determined that UPS A1-8. How can the systems approach to management help was prepared, but then several online retailers began offer Scott Abell in his role as peak planning manager? ing next day delivery on purchases made up until 11 p.m. A1-9. What do you imagine it was like to work at UPS in on December 23. That promotion drove the number of pack 1950? How do you think working conditions have ages to be about double what Abell's team had forecasted. changed at UPS since then? Experiential Exercises Analyzing a Golf Swing people should be working--that is, how many activities of various sorts they should be performing per hour. Using a Directions. Read the following scenario and then perform the stopwatch and a computer, you would evaluate what people listed activities. Your instructor may want you to perform the do during a typical workday and then make suggestions to activities as an individual or within groups. Follow all of your their supervisors for how the employees can improve their instructor's directions carefully. activities. Although you would probably enjoy seeing how Frank and Lillian Gilbreth recommended improving a piece of scrap metal is molded into a finished tool you worker efficiency and effectiveness by searching for the one might not enjoy pushing people to work harder because of best way to perform work tasks. To discover this one best the results of your studies. The salary and benefits seem fine way, the Gilbreths would perform motion studies, which to you. You've been with the company for two years and think would pinpoint the best behaviors to use. For example, as that eventually you'd like to be president of this company a result of one of the Gilbreths' motion studies, the number Would you take the job? Why? Why not? of motions needed to lay brick was reduced from 12 to 2 Obviously, the effectiveness and efficiency of bricklayers were significantly increased as a result of the motion study, Building Your Management To gain some experience in performing a motion study. Skills Portfolio find two photos on the Internet, one photo showing profes sional golfer Phil Mickelson's golf swing and follow through Your Management skills Portfolio is a collection of activi- and the other photo showing an amateur's golf swing and ties specially designed to demonstrate your management follow through knowledge and skill. Be sure to save your work. Taking your Activity Compare Phil Mickelson's swing and follow. printed portfolio to an employment interview could be help through to those of the amateur How are they the same? ful in obtaining a job How are they different? Refer to specific behaviors in your Management skills at Croes. Read the following about The portfolio activity for this appendix is Comprehensive comparison Crocs, Inc., and perform the activities that follow. Activity 2: What advice would you give the amateur for Crocs, Inc., started when three Boulder, Colorado, residents improving his or her success in goll? decided to develop and market an innovative type of footwear Activity 3: What are the strengths and the limitations of called Crocs shoes. Although originally intended as a boat your motion study results? ing/outdoor shoe because of its slip-resistant, nonmarking sole, by 2003 Crocs had become a bona fide phenomenon, univer You and Your Career sally accepted as an all-purpose shoe for comfort and fashion During 2003-2004, the Crocs company focused on You have just heard about an opening for a job as a time accommodating remarkable growth while maintaining con study specialist in a company that manufactures plumb-trol of the expansion. The company expanded its product ing tools. Your main job would be to figure out how hard line, added warehouses and shipping programs to provide 4- How system approach can be used by Ford to be effective and efficient? 5- As CEO of Ford, how would you think Learning organization approach be useful for FORD (or would it?) by analyzing the elements of learning organization approach? 6. After analysis of the all above approaches which approach you would have used to increase success of the company hence yours