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Wednesday, May 1, 2013

management

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Questions on Organizational Behavior

Prepared by Dr. Stephen Hartman, School of Management, New York Institute of Technology.

. What are some of the new challenges confronting managers in todays business environment?

The global, one-world economy is changing the nature of competition. The second generation of the Information Age, marked by advances in decision support and telecommunications technology, is changing the nature of work in all organizations.

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The quality Service Revolution is changing the focus of competition among world competitors as product and service quality become increasingly important to consumers, both internally and externally.

. What are the three dimensions of management and how are they important.

The three dimension of management are technical, conceptual, and human. It is absolutely essential for managers to develop meaningful solutions to todays complex management problems by using innovative technological solutions that provide answers to problems people and organizations are having. Furthermore, it is critical to managements success that they be able to meaningfully understand human resource needs and be able to successfully deploy these

5. Discuss Henri Fayols contributions to organizational theory.

Henri Fayol has been called the father of management. Henri Fayol was a successful French industrialist. He also created the first school of management. He was responsible for developing the major classical management concepts of planning, organizing, developing, staffing, coordinating, and budgeting (PODSCORB). He also was the first to develop the importance of lateral communications with his gang plank theory of communications in organization.

Henri Fayol belongs to the administrative management branch of the classical school. His entire working career was spent with a mining company, Commentary-Fourchambault Company, where he rose from an apprentice to General Manager in 1888 remaining there until his retirement in 118. He is credited with turning the company around from a threatened bankruptcy into a strong financial position by the time of his retirement at age 77.

As a result of his management experience, Fayol strongly believed management theories could be developed and taught to others. His first writing on administration, Administration Industrielle et Generale, was published in 116 in the Bulletin of the Society of Mineral Industries and later appeared as a book. The book became prominent in the United States after a second English translation appeared in 14 under the title General and Industrial Management.

Henri Fayols Fourteen Management Principles

a. Division of Work. Division of work, specialization, produces more and better work with the same effort. It focuses effort while maximizing employee efforts. It is applicable to all work including technical applications. There are limitations to specialization which are determined by its application.

b. Authority and responsibility. Authority is the right to give orders and the power to exact obedience. Distinction must be made between a managers official authority deriving from office and personal authority created through individual personality, intelligence and experience. Authority creates responsibility.

c. Discipline. Obedience and respect between a firm and its employees based on clear and fair agreements is absolutely essential to the functioning of any organization. Good discipline requires managers to apply sanctions whenever violations become apparent.

d. Unity of command. An employee should receive orders from only one superior. Employees cannot adapt to dual command.

e. Unity of direction. Organizational activities must have one central authority and one plan of action.

f. Subordination of Individual Interest to General Interest. The interests of one employee or group of employees are subordinate to the interests and goals of the organization and cannot prevail over it.

g. Remuneration of Personnel. Salaries are the price of services rendered by employees. It should be fair and provide satisfaction both to the employee and employer. The rate of remuneration is dependent on the value of the services rendered as determined by the employment market.

h. Centralization. The optimum degree of centralization varies according to the dynamics of each organization. The objective of centralization is the best utilization of personnel.

i. Scalar chain. A chain of authority exists from the highest organizational authority to the lowest ranks. While needless departure from the chain of command should be discouraged, using the gang plank principle of direct communication between employees can be extremely expeditious and increase the effectiveness of organizational communication.

j. Order. Organizational order for materials and personnel is essential. The right materials and the right employees are necessary for each organizational function and activity.

l. Equity. In organizations equity is a combination of kindliness and justice. The desire for equity and equality of treatment are aspirations to be taken into account in dealing with employees.

m. Stability of Tenure of Personnel. In order to attain the maximum productivity of personnel, it is essential to maintain a stable work force. Management insecurity produces undesirable consequences. Generally the managerial personnel of prosperous concerns is stable, that of unsuccessful ones is unstable.

n. Initiative. Thinking out a plan and ensuring its success is an extremely strong motivator. At all levels of the organizational ladder zeal and energy on t he part of employees are augmented by initiative.

o Esprit de Corps. Teamwork is fundamentally important to an organization. This is encouraged by creating work teams and using extensive face-to-face verbal communication.

While subsequent organizational research has created controversy over many of Fayols principles, they are still widely used in management theory.

6. Discuss Max Webers contributions to organizational theory.

Max Weber can be classified in the bureaucratic management branch of the classical school. Weber, the son of a prominent Bismarckian era German politician, was raised in Berlin and studied law at the University of Berlin. After assuming an appointment teaching law at the University of Berlin, Weber assumed teaching appointments in economics at the Universities of Freiburg, Heidelberg, Vienna, ending with his death after a bout with pneumonia.

Webers interest in organizations evolves from his view of the institutionalization of power and authority in the modern Western world. He constructed a rational-legal authority model of an ideal type bureaucracy. This ideal type rested on a belief in the legality of patterns of normative rules and the right of those elevated to authority to issue commands (legal authority). Weber postulated the rules and regulations of a bureaucracy serve to insulate its members against the possibility of personal favoritism.

Weber Believes All Bureaucracies Have Certain Characteristics

a. A well defined hierarchy. All positions within a bureaucracy are structured in a way permitting the higher positions to supervise and control the lower positions. This provides a clear chain of command facilitating control and order throughout the organization.

b. Division of labor and specialization. All responsibilities in an organization are rationalized to the point where each employee will have the necessary expertise to master a particular task. This necessitates granting each employee the requisite authority to complete all such tasks.

c. Rules and regulations. All organizational activities should be rationalized to the point where standard operating procedures are developed to provide certainty and facilitate coordination.

d. Impersonal relationships between managers and employees. Weber believes it is necessary for managers to maintain an impersonal relationship with the employees because of the need to have a rational decision making process rather than one influenced by favoritism and personal prejudice. This organizational atmosphere would also facilitate rational evaluation of employee outcomes where personal prejudice would not be a dominant consideration.

e. Competence. Competence should be the basis for all decisions made in hiring, job assignments, and promotions. This would eliminate personal bias and the significance of knowing someone in central personnel decisions. This fosters ability and merit as the primary characteristics of a bureaucratic organization.

f. Records. Weber feels it is absolutely essential for a bureaucracy to maintain complete files regarding all its activities. This advances an accurate organizational memory where accurate and complete documents will be available concerning all bureaucratic actions and determinations.

Webers bureaucratic principles have been widely adopted throughout the world. Yet, there are many critics.

7. Discuss Frederick W. Taylors contributions to organizational theory.

Taylor has been termed the father of scientific management. As the name implies, it was a scientific approach to managerial decision making. The name was intended to contrast his approach with the unscientific approaches that characterized traditional management practices at the time. Taylors major techniques included time and motion studies whereby the work task was divided into its constituent elements or motions and eliminating wasted motions so that the work would be done in the one best way as well as timing the remaining motions in order to arrive at an expected rate of production.

Taylor also pushed strongly for standardization in the design and use of tools. Tools and procedures were standardized in accordance with what designs were most effective in a given context. Taylor also advocated a worker be assigned a given quantity of work each day based on the results of time study. This was forerunner of modern day goal-setting.

Taylor claimed the primary motivation of an employee was to earn money. Therefore, the way to get an employee to work harder was to pay by the piece. This system, known as the piece rate system, was intended to provide individual employee productivity incentives.

8. What was the Hawthorne study and why was it important?

The Hawthorne Experiments consist of two studies conducted at the Hawthorne Works of the Western Electric Company in Chicago from 14 to 1. The studys particular focus is on lighting and attempts to operationalize many of the principles of scientific management.

The initial study in 14 was conducted by a group of engineers seeking to determine the relationship of lighting levels to worker productivity. The study was done in connection with the National Research Council of the National Academy of Sciences.

The results of the studys findings are extremely interesting since worker productivity increases as the lighting levels decrease until the employees are unable to see what they are doing after which performance naturally declines.

Beginning in 17 a second group of experiments commenced with a group of five women in the bank wiring room. During the course of the experiment, the women are supervised by the experimenters conducting the study. Additionally the workers in the experimental group are given special privileges including the right to leave their workstation without permission, rest periods, free lunches and variations in pay levels and workdays. As with the first set of experiments, the second group of experiments result in significantly increased rates of productivity.

In the second experimental study in 18 the Harvard researchers, F. J. Roethlisberger, Professor of Human Relations, and Elton Mayo, a Professor of the Industrial Research Department, became associated with it. After extensive research, the results were not published until 1, they conclude the primary determinant of the increase in productivity is the change in the supervisory arrangement rather than the changes in lighting or other associated worker benefits. Since the experimenters became the primary supervisors of the employees, the intense interest they displayed for the workers was the basis for the increased motivation and resulting productivity.

Essentially the experimenters became a part of the study and influenced its outcome. This is the origin of the term Hawthorne Effect describing the special attention researchers give to a studys subjects and the impact it has on its findings. While the result of the Hawthorne studies failed to answer the specific question of the relation between illumination and worker productivity, the study did create a strong theoretical foundation for the human relations view of management.

. Discuss Chester Barnards contributions to organizational theory.

Barnard led a highly successful management career rising to the position of the President of New Jersey Bell Telephone Company. He was also very active professionally including acting as the head of the Rockefeller Foundation. After giving a series of lectures on management, Barnard published his only book, The Functions of the Executive, in 18.

Basically, Barnard feels organizations are communication systems. He feels it is particularly important for managers to develop a sense of common purpose where a willingness to cooperate is strongly encouraged. He is credited with developing the acceptance theory of management emphasizing the willingness of people to accept those having authority to act. He feels the managers ability to exercise authority is strongly determined by the employees zone of indifference where orders are accepted without undue question.

Contrary to Weber beliefs that communication flows from the top of the organization to the bottom, Barnard feels organizational communication flows from the bottom to the top. He states there are four factors affecting the willingness of employees to accept authority

1. The employees must understand the communication.

. The employees accept the communication as being consistent with the organizations purposes.

. The employees feel their actions will be consistent with the needs and desires of the other employees.

4. The employees feel they are mentally and physically carry out the order from the higher authority.

Barnard also feels informal organizations within formal organizations perform necessary and vital communication functions for the overall organization. This is consistent with his belief that the executives main organizational function is acting as a channel of communication and maintaining the organization in operation.

Barnards sympathy for and understanding of employee needs in the dynamics of the organizational communication process positions him as a bridge to the behavioral school of management many of whose early members were his contemporaries.

10. Who was Mary Parker Follet and why was she important to organizational theory?

One of the earliest pioneers in the behavioral movement was Mary Parker Follet. Follet received an education in political science and pursued a professional career as a social worker where she became absorbed in work place related issues. She strongly believes in the inherent problem solving ability of people working in groups. Rather than assuming classical managements strongly hierarchical position of power in organizations, Follet asserts power should be cooperatively shared for the purpose of resolving conflict.

She is best known for her integration method of conflict resolution as opposed to the three choices she sites of domination, compromise or voluntary submission by one side over another. If, for example, an individual is sitting in a library on a warm spring day near an open window and a second person decides to share the table but wishes to close the window to avoid the draft, we have the basis of a conflict. Now one person could try and dominate the other and force the window to either be open or closed leaving the other person unhappy. A second alternative is for one person to simply submit to the wishes of the other, but be very unhappy. The third alternative is to compromise and close the window half way which will not satisfy either person.

Follet states the best way to handle this situation is to resolve the issue jointly through creative conflict resolution where, in our example, the newcomer may voluntarily agree to sit in another part of the library adjusting the window according to his/her preference. In this case, both parties to the conflict are happy as the issue has been resolved according to their own desires. Creative conflict resolution involves cooperatively working with others to devise inventive new ideas often providing strong interpersonal benefits.

11. Discuss Herbert Simons contributions to organizational theory.

The death knell of classical management theory was pronounced by Herbert Simon in his book Administrative Behavior A Study of Decision-Making Processes in Administration Organization published n 147. Simon is particularly critical of the principles of administration including span of control and unity of command while saying all of the principles collectively were no more than proverbs. Simon found the principles of classical administration to be contradictory and vague.

Simons greatest management contribution is in decision making theory for which he received a Nobel prize. Simon states decision makers perform in an arena of bounded rationality and that the approach to decision making must be one of satisficing where satisfactory rather than optimum decisions are often reached. Satisficing successfully adapts to and is a realistic solution for the limited time and resources a manager has when considering alternatives in the decision making process.

1. Disccuss Abraham Maslows contributions to organizational theory.

Receiving his doctorate in psychology, Abraham Maslow was the first psychologist to develop a theory of motivation based upon a consideration of human needs. Maslows theory of human needs has three assumptions. First, human needs are never completely satisfied. Second, human behavior is purposeful and is motivated by need satisfaction. Third, needs can be classified according to a hierarchical structure of importance from the lowest to highest.

Maslow believes the needs hierarchy can be classified into five specific groups. To reach successive levels of the hierarchy required the satisfaction of the lower level needs

1. Physiological needs. Maslow groups all physical needs necessary for maintaining basic human well being into this category. These needs become acute and predominant if any or all of these needs are unsatisfied. However, consistent with Maslows theory of motivation, once a need is satisfied, such as thirst, it no longer is a motivator.

. Safety needs. These needs include the need for basic security, stability, protection, and freedom from fear. A normal state exists for an individual to have all of these needs generally satisfied. Otherwise, they become primary motivators.

. The belongingness and love needs. Once the physical and safety are satisfied and no longer are motivators, than the belongingness and love needs emerge as primary motivators. The individual will strive to establish meaningful relationships with significant others. Deprivation of the belongingness and love need will result in significant personality maladjustment.

4. The esteem needs. An individual must develop self confidence. In order to do this it is essential to the individual to have adequacy from achieving mastery and competence leading to the achievement of status, reputation, fame and glory. This achieves satisfaction of the self-esteem needs.

5. The need for self-actualization. Assuming all of the previous needs in the hierarchy are satisfied, a new discontent and restlessness will soon develop... A musician must make music, an artist must paint, a poet must write ... What a man can be, he must be.

Maslows hierarchy of needs theory helps the manager to visualize employee motivation. It helps in understanding the motivations and needs employees have and the requirement to satisfy basic needs in order to achieve higher level motivation.

1. Discuss Douglas McGregors contributions to organizational theory.

McGregor is the other major theorist associated with the Human Relations school of management. McGregor believes there are two basic kinds of managers.

One type of manager, Theory X, has a negative view of employees assuming they are lazy, untrustworthy and incapable of assuming responsibility while the other type of Manager, Theory Y, assumes employees are trustworthy and capable of assuming responsibility having high levels of motivation.

Theory X

1. Employees normally do not like to work and will try to avoid it.

. Since employees do not like working, they have to coerced, controlled, directed and threatened with punishment to motivate them to work.

. The average employee is lazy, shuns responsibility, is not ambitious, needs direction and principally desires security.

Theory Y

1. Work is as natural as play and therefore people desire to work.

. Employees are responsible for accomplishing their own work objectives.

. Comparable personal rewards are important for employee commitment to achieving work goals.

4. Under favorable conditions, the average employee will seek and accept responsibility.

5. Employees can be innovative in solving organizational problems.

6. Most organizations utilize only a small proportion of their employees abilities.

Mcgregors Theory X and Y is appealing to managers and dramatically demonstrate the divergence in management viewpoints toward employees. As such, Theory X and Y has been extremely helpful in promoting management understanding of supervisory styles and employee motivational assumptions.

14. Discuss Renesis Likerts contributions to organizational theory.

While being the director of the Institute of Human Relations at Ann Arbor, Michigan, Likert conducted a series of empirical studies on the differences between good and bad supervisors defined on the basis of high and low productivity. His research is based on employee interviews in separate departments in many different organizations where a scale of feelings is developed, the Likert scale, regarding employee attitudes toward their supervisors. This was correlated with their productivity.

Based on his research, Likert developed a four level managerial classification system. System 1 utilizes a supervisory system based primarily on fear and punishment. This results in an authoritarian supervisory system where employees are usually not consulted concerning major decisions.

In System organizations rewards are used to motivate employees with some freedom being allowed to comment on organizational decisions. However, managers have the primary decision making responsibility and employees in a System organization must act cautiously.

System organizations are more open to employee consultation regarding the managerial decision making process and overt managerial threats are avoided.

Likert states the System 4 organization is the most open and participative and is the ideal state managers should strive to achieve. This is termed the democratic model. Likert states the more an organizations management approximates the System 4 model, the more productive it will be.

15. Discuss Frederick Herzbergs contributions to the study of organizational behavior?

Additional empirical research was performed by Herzberg on 00 engineers and accountants. The research objective was to determine work situations where the subjects feel highly satisfied and motivated as opposed to those where the reverse is true. The research reveals that the work itself and achievement as well as recognition for the achievement are the primary motivators. Herzberg terms these factors satisfiers or motivators.

Factors having a negative motivation impact on the research subjects are the working conditions, salary, job security, supervisory methods and the general company management climate. Herzberg terms these factors hygiene factors or dissatisfiers.

From this research Herzberg developed the motivation-hygiene model of management. The model states that employee motivation is achieved with challenging enjoyable work where achievement, growth, responsibility and advancement are encouraged and recognized. The environmental or hygiene factors, such as poor lighting, ventilation, poor working conditions, low salaries, and poor supervisory relations, serve as dissatisfiers.

The difference between motivators and hygiene factors is that motivators cause an employee to develop his/her own internal motivations, whereas hygiene factors can make an employee unhappy and dissatisfied, but cannot motivate him/her. The job itself is the motivator.

16. Discuss David C. McLelland contributions to organization theory.

He performed research on motivation patterns. In the Thematic Apperception Test (TAT) where an individual writes a descriptive analysis of their individual reactions from unstructured pictures. McClelland determines the motivational state of the subjects from these descriptions.

Based upon this research, McClelland developed an achievement motivation theory consisting of four sets of needs achievement, affiliation, competence and power. Achievement motivation is a need people have to succeed through overcoming challenges. The affiliation motivation is similar to Maslows belongingness and love need where people relate to others on a social basis. The competence need is the desire to accomplish a job well done, and the power motivation is the need to control others and make a difference in the outcome of a given situation.

McClelland believes people have strong needs. His achievement motivation theory is important for managers seeking understanding of employee motivational patterns.

17. Discuss W. Edwards Demings contributions to organizational theory.

Deming received his doctorate in physics from Yale and was invited by the Union of Japanese Scientists and Engineers to visit Japan in 150. In addition to urging the Japanese to use sampling methods to test for quality control, he also taught them the best way to lowered production costs was improved quality. Dr. Deming is concerned with increased organizational productivity by applying statistical quality controls as well as improving organizational communication

Although well known in Japan, Deming was ignored for years in the U.S.; however, this began to change after he was featured on an American TV show dealing with the reasons why the Japanese competition was threatening American business. He soon became sought after by American corporations coping with the mounting international competitive threat.

Demings Fourteen Management Points

1 Create constancy of purpose toward improvement of product and service, with the aim to become competitive, to stay in business, and to provide jobs.

Adopt a new philosophy. We are in a new economic age, created by Japan. We can no longer live with commonly accepted styles of American management, nor with commonly accepted levels of delays, mistakes, or defective products.

Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place.

4 End the practice of awarding business on the basis of price tag. Instead, minimize total cost.

5 Improve constantly and forever the system of production and service to improve quality and productivity, and thus constantly decrease costs.

6 Institute training on the job.

7 Institute supervision the aim of supervision should be to help people and machines and gadgets do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers.

8 Drive out fear, so that everyone may work effectively for the company.

Break down the barriers between departments. People in research, design, sales, and production must work as a team to foresee problems of production and use that may be encountered with the product or service.

10 Eliminate slogans, exhortations, and targets for the work force which ask for zero defects and new levels of productivity. Such exhortations only create adversarial relationships. The bulk of the causes of low productivity belong to the system, and thus lie beyond the power of the work force.

11 Eliminate work standards that prescribe numerical quotas for the day. Substitute aids and helpful supervision.

1 Remove the barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. Remove the barriers that rob people in management and engineering of their right to pride of workmanship. This means abolishment of the annual rating, or merit rating, and management by objective.

1 Institute a vigorous program of education and retraining.

14 Put everybody in the company to work to accomplish the transformation.

18. Discuss the evolution of management theory.

The evolution of management thought has followed societal trends of the nineteenth and twentieth centuries. The nineteenth century works of Charles Babbage and Robert Owen were concerned with the early factory system as well making social progress. The classical school and bureaucratic school of the early twentieth century were the first efforts to generate a comprehensive theory of management. This school included Max Weber and Henri Fayol. Fayol was the father of the administrative management school. He had a profound affect on much of administrative theory during the early part of the twentieth century.

Frederick Taylor, the engineer, established the scientific method of management.

The behavioral school made a profound influence on management theory. It is a revolutionary period of management theory. It includes the Nobel prize winning critic of the early proverbs of administration, Herbert Simon, as well as the landmark Hawthorne Experiment ushering in the human relations branch of the bureaucratic method. The behavioral school also includes the first female organizational theorist, Mary Parker Follet. A major result of the behavioral school is the demise and repudiation of the classical school of management.

The human relations school of management is extremely important in dealing with the concept of employee motivation. Herbert Maslow developed the hierarchy of needs theory while Douglas McGregor developed Theory X and Y. The behavioral research school applies much of the needs theory developed by Maslow in actual organizational settings.

The contemporary management school brings a more interdisciplinary approach to the field of management. The very important writings of W. Edwards Deming in the area of productivity improvement and those of Peter Drucker on MBO and management innovation have a major impact on the way todays organizations are managed. The integrative methodologies of the systems approach and contingency theory give managers the latitude they need to integrate the research of the many management schools.

Finally, the quality school of management is extremely important in presenting a comparative management model. W. Edwards Deming is the pre-eminent theorist in this school. It has also become known as Total Quality Management (TQM).

0. Organizational theory is extremely interdisciplinary. What are the foundations for the discipline?

There are three basic building blocks for organizational theory. They are anthropology, sociology, and psychology.

1. Discuss the significance of reliability and validity in organizational theory research.

Reliability is the accuracy of measurement and consistency of results. Validity is whether the study really demonstrates what it is supposed to demonstrate. Internal validity assures that there are no plausible alternative explanations other than those reported (threats of internal validity).

Additionally, there are types of validity researchers must be concerned with in understanding research in organizational behavior

Content - how well the measure captures the behavior of interest.

Predictive - an objective statistical relationship between what is being predicted (criterion) and what is being used to predict it (predictor).

Construct - the degree to which observable characteristics converge with similar concepts or discriminate between dissimilar concepts.



. Because people are confronted by constant stimuli, they are unable to attend to them all. Therefore, they select only a small number at any given time. This is accomplished through the principles of perceptual selectivity. What are the various external attention factors that affect perceptual selectivity.

a. Intensity - the more intense the stimulus, the more likely it is to be perceived.

b. Size - the larger, the object, the more likely it is to be perceived.

c. Contrast - external stimuli which stand out or which are not what people are expecting will receive more attention.

d. Repetition - repeated external stimuli are more attention-getting than a single stimulus.

e. Motion - more attention will be paid to moving objects than to stationery ones.

f. Novelty and Familiarity - new objects in a familiar setting or familiar objects in a new setting are attention getting.

4. Discuss the role of heredity in determining personality.

The exact role that heredity plays in personality is inconclusive. However, research on identical twins (the Jim twins) raised apart has shown some support for this perspective. Despite a continuing debate on heredity versus environment, genetics experts and educational psychologists generally argue that intelligence is to some degree inherited.

5. What did the Milgram study demonstrate about the role that the situation plays in the human personality?

Subjects from a variety of occupations administered increasing levels of shock to a fellow learner. The subjects were exposed to the accomplices vocal responses (moans, screams, pleas, etc.) and were encouraged by the experimenter to continue the experiment. Contrary to expert opinion, almost two-thirds of the subjects went ahead and administered what they thought was a very dangerous or even fatal amount of voltage. The results of the experiment suggested that people tend to obey those in authority positions, even though their behavior goes against their personality or better judgment.

6. What are successful organizational socialization strategies?

Provide a challenging first job.

Provide relevant training.

Provide timely and consistent feedback

Select a good supervisor to be in charge of socialization.

Design a relaxed orientation program.

Place new recruits in work groups with high morale.

7. Discuss attitudes as a complex cognitive process.

They tend to persist unless something is done to change them. They can fall anywhere along a continuum from very favorable to very unfavorable. They are directed toward some object about which a person has feelings and beliefs.

8. Discuss the role attitudes play in organizational behavior in terms of help people adapt to their work environment.

They help employees adjust tot heir environments and are a basis for future behaviors. They help employees defend their self images and justify actions.

They provide a basis for expressing central values.

They help supply standards that allow people to organize and explain the world around them.

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. Discuss how it is possible to change employee attitudes.

Provide new information.

Use fear

Resolve discrepancies between attitudes and behavior

Use influence from friends or peers.

Employ co-optation whereby disgruntled employees are made a part of the process and given credit for it.

0. Discuss the importance of job satisfaction in achieving productivity.

Most research evidence indicates that there is no large positive relationship between satisfaction and productivity; however, if people are rewarded equitably, they will be more satisfied and they may strive for a greater performance effort.

1. Discuss the relationship between job satisfaction and absenteeism.

There is an inverse relationship between job satisfaction and absenteeism. People who believe that their work is important tend to have lower absenteeism then those who dont. It is important to remember, however, that high job satisfaction will not necessarily result in low absenteeism, but low job satisfaction is likely to bring about high absenteeism.

. Discuss how Victor Vrooms Expectancy Theory depicts a process of cognitive variables which reflect individual differences in motivation. What are the variables in his the Expectancy Theory.

Valence - the strength of an individuals preference for a particular outcome.

Instrumentality - the degree to which a first level outcome will lead to a desired second level outcome.

Expectancy - the probability that a particular effort will lead to a particular first level outcome.

The model helps management understand workers motivation, but does not provide specific solutions to motivational problems.

. Discuss how equity theory argues that a major input into job performance and satisfaction is the degree of equity or inequity that people perceive in their work situation.

Inequity occurs when a person perceives that the ratio of his/her outcomes to inputs are unequal. Inputs and outcomes are based on perception. Motivation under this perspective can be defined by the drive to restore equity. This may be done in several ways

Alter the inputs or outcomes

Cognitively distorts the inputs or outcomes.

Leave the field

Act on the other

Change the other

Feelings of inequity can occur not only when a person feels cheated, but also in the case of overreward. There has been research support for the theory.

4. Compare and contrast job enlargement and job enrichment.

Job enlargement is termed horizontal job loading. It makes the job less specialized by adding more functions to it, but without increased responsibility for the worker. Job enrichment is a direct outgrowth of Frederick Herzbergs Two-Factor Theory of motivation. In particular, job enrichment is concerned with designing jobs that include greater variety of work content, require higher levels of skill, give workers more autonomy and provide feedback.

Job enrichment vertically loads the job, which means that there are not necessarily more tasks to perform, but more responsibility for the overall job.

5. Explain the quality of work life (QWL) approach to job design.

QWL is a more general approach to job design. It is primarily concerned with the impact of work and organizational climate on people, and how this in turn influences organizational effectiveness. Design efforts are focused on the human-technology-organization interface. Employee participation in problem solving and decision making is central to this approach.

6. Explain the sociotechnical approach to job design.

This approach is grounded in systems theory. It is concerned with the harmony between personal, social and technological functioning. This approach generally involves the redesign of technological work processes and the formation of autonomous, self-regulating work groups.

7. Discuss the interrelationship of goal setting with human resource management.

Effective goal setting includes the following elements

specific goals are more effective than vague, general or do your best goals.

difficult, challenging goals tend to be more effective than relatively easy, mundane goals. Owned and accepted goals arrived at through participation are preferred to assigned goals. Objective, timely feedback about progress toward goals is preferable to no feedback.

8. What are the four major techniques of administering reinforcement?

Fixed-ratio schedules - reinforcement is given after a fixed number of responses. This schedule tends to produce a high response rate that is vigorous and steady.

Fixed-interval schedules - reinforcement is given after a specified time or period, measured from the last reinforced response. Under a fixed-interval schedule there is an uneven pattern that varies from a slow response immediately following reinforcement to a vigorous response immediately preceding reinforcement.

Variable-ratio schedules - reinforcement is given after a randomly varied number of responses. Each response has an equal chance of being reinforced regardless of the number of responses that have preceded it.

Variable-interval schedules - reinforcement is given after a randomly distributed length of time.

44. Discuss the trait theory of leadership.

The Great Man theory says that a person is born either with or without the necessary traits for leadership. A more recent and realistic approach accepts the fact that leadership traits are not completely inborn, but can be acquired through learning. The results of a search for universal traits are disappointing, and the only consistent result was that leaders are generally brighter than their followers, but not too much so.

45. Discuss Fiedlers Contingency Theory of Leadership.

His contingency model contained the relationship between leadership style (human relations or task-direct) as measured by the Least Preferred Coworker (LPC) scale, and the favorableness of the situation (leader-member relations, degree of task structure, and position power).

Situations are favorable for the leader when all three situational dimensions are high. When the dimensions are low, the situation is unfavorable.

Under highly favorable or unfavorable situations, task directed leaders are more effective. In situations of moderate favorableness, by far the most common situation, human relations leaders are more effective.

6. What are the major categories of organizational communication.

Management Information Systems - generally computerized systems which integrate networks of information that support management decision making, strategic planning, customer service activities, and actual communication.

Telecommunication Technology - involves the transmission of information within and between organizations using computer, telephone, and television technologies, wireless systems of portable phone, and wired systems of fiber optic linkages. Existing telecommunications applications include telephone caller ID, electronic mail, electronic data interchange (EDI), voice messaging, and electronic bulletin boards.

Nonverbal - nonword human responses, such as body language, time, space, paralanguage, environmental context, etc., that convey meaning.

What are some methods of promoting effective upward communication and improving managers listening habits?

Grievance procedure - allow employees to make upward appeals and protect individuals from arbitrary action by their direct supervisor.

Open Door policy - allows subordinates to interact with their supervisor when needed or wanted.

Counseling, attitude questionnaires, and exit interviews - these contribute valuable upward information for management to correct or prevent problems.

Participative techniques - either informal or formal participation programs generally result in more satisfied employees and, occasionally, better performers.

Ombudsperson - encourages subordinate-initiated communication, especially in large, depersonalized organizations.

67. What are some examples of formal programs of employee participation in organizations?

The Scanlon Plan is a pioneering form of labor-management cooperation.

Suggestion plans or boxes represent another traditional participation program.

Quality circles, a technique widely used in Japan, are small groups of volunteers from the same work area who collectively solve work-related problems.

Self-managed work groups have become very popular in the most innovative firms. These groups run themselves and have proved to be very productive in firms such as General Mills.

68. What are some criticisms of the Webers bureaucratic model?

Specialization - creates conflict between specialized units.Hierarchy - individual initiative and participation are often blocked. Upward communication and horizontal communication are impeded.

Rules - rules often become ends in themselves. Rules are used for punitive control from above.

Impersonal characteristics - are concerned with human problems (both employees an customers) associated wit bureaucratic structures.



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Analysis of Wal-Mart̢۪s strategy

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1. Why did Mexico make suck a good proving ground for Wal-Mart̢۪s foreign expansion strategy?

Answerï¼Å¡

Considering the environment of politic and economic of Mexican in 10s, it provided Wal-Mart good opportunity to expand its business. There are main three factors as follows

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l Firstly, when Wal-Mart considering expanding global market, U.S.A. at the same time was entering negotiations with Mexico and Canada about the North American Free Trade Agreement. This spurred the interests of Wal-Mart to develop its business in neighbor̢۪s market.

l Secondly, the leader of Mexico, Carlos Salinas, who was a Harvard-trained economist, advocated free market reforms and privatized those State-owned enterprises in Mexican. This created nicer investment environment to Wal-Mart.

l The tight monetary policy lowered inflation rate into the single digits in Mexican.

All of these would be bring good opportunities to Wal-Mart for its strategy to enter Mexican̢۪s market.

l Firstly, the barriers to trade and investment between U.S.A and Mexican, which had already lowered by Salinas, would fall much further under the NAFTA proposal.

l Second, tariffs on goods imported from the United States had come down from 100 percent in the mid-180s to a maximum of 0 percent by the early 10s, and under NAFTA many of these would fall to zero.

l The tight monetary policy drove Mexican̢۪s economy growth rate at 4 to 5 percent per year by the early 10s; disposable income of Mexican people had increased by 70 percent since Salinas took office. And more than two third of people would be classified as middle class, which means people have enough purchasing power.

With an eye to big potential opportunities in Mexico market, Wal-Mart carried its points by taking many right steps. Such as

l Concentrated in three main urban areas Mexico City, Guadalajara, and Monterrey. The people there are richer and with much stronger purchasing power for consuming, easily accepted the consuming way in the supermarket.

l Deeply investigated in Mexican market, and quickly knew that the company̢۪s competitive advantage is the combination of culture and supporting information and logistics systems, and the weakness is knew nothing about the culture and business system in this new market. Comparing all investing possibilities, then Wal-Mart decided the best way to do is taking the form of joint venture by 50 to 50.

l Chosen the good partner for the joint venture in Mexico. Cifra, the largest one in Mexico, has rich experience in retail market and has well done in dealing with supermarket business for several years. Concerning the business dimension and benefits, Cifra operated 10 discount and grocery stores and generated sales about $. billion. The good condition of Cifra can minimum the investment risk of Wal-Mart.

l The two founders of Wal-Mart and Cifra have a good relation and reached a common agreement with regard to the NAFTA which opened up opportunities for both sides in business cooperation in Mexico.

Good relation of two founders

ï¼Å½What is the source of Wal-Mart’s competitive advantage? What barriers did Wal-Mart have to overcome in transferring its competencies to Mexico?

Answer

l Advantage

1) First-class management team, that pursued a number of innovative operating strategies that backed up the company̢۪s commitment to deliver a large selection of high-value merchandise at a low cost to consumers.

) Located in small Southern towns when it̢۪s early period that had no other major retail presence. Wal-Mart did not have to face competition from other discounters.

) Advanced distribution system. Pioneered the development of a hub-and-spoke-based distribution system, where central distribution warehouses were strategically located to serve clusters of stores.

4) IT system. Wal-Mart has one of the first to utilize computer based information systems to track in-store sales and transmit this information to suppliers.

5) Dynamic and egalitarian culture. Wal-Mart grants major decision-making authority or store managers, department managers and individual employees(associates). Treating employees well, demanding commitment and excellent performance from them. profit-sharing plan and stock ownership plan

6) Has garnered significant leverage with its suppliers, and use this leverage to demand lower prices from its suppliers.(every day low prices)

l Barriers

1) Culture and system are difficult to transfer to franchisees

) Distribution and transportation cost too much

) Mexican retail market is very fragmented and dispersed

4) Government bureaucrats

5) NAFTA is not been implemented, high tariffs

6) Select a non-perfect merchandise

. How did Wal-Mart intend to create value in the Mexican market?

Answer

Wal-Mart believes that its unique culture, format, and operating systems are its advantage for international expansion. At that time, the United States, Mexico and Canada were talking about the foundation of North American Free Trade Agreement (NAFTA). This spurred Wal-Mart̢۪s interests in Mexico. Historically, there are a lot of cross border trade and investment between U.S.A and Mexico. On the other hand, there are potential customers in Mexico, about 0 million middle class. The following is the steps of Wal-Mart entered into Mexico market

l Enter a 50/50 joint venture with Cifra. After a rapid grow in U.S.A., Wal-Mart has recognized that its U.S. growth prospects are ultimately limited by market saturation, its growth rate in U.S. would inevitably slow. This would slow stock price appreciation for Wal-Mart. Wal-Mart realized that it knew little about the culture and business systems of Mexico, so the company decided to form a joint venture with Cifra.

l 11 it opened the first Sam̢۪s Club store in Mexico City.

l 1 Wal-Mart established six more Sam̢۪s Clubs in Mexico

l 1 Wal-Mart began to open stores under the Wal-Mart name.

4. Despite some early setbacks, Wal-Mart has apparently been successful in Mexico. In contrast, some other U.S. retailers pulled out of the country in the aftermath of the December 14 peso crisis. What do you think distinguishes Wal-Mart from these companies?

Answer

l Wal-Mart has the integrated and effective foreign growth strategy

1) Entering a joint venture with a Mexincan company, Cooperate with Cifra in Mexico.

After debating a number of option for expansion, it chose to enter a 50/50 joint venture with Cifra, because it know little about the culture and business systems of Mexico.

During the December 14 peso crisis

) Making strong improvements in its operating efficiency.

Because of the low local labor costs, it can reduce its inventory and logistic costs

) Start to source far more goods from Mexico

Because many of its suppliers had located in Mexico to take advantage of lower production costs and NAFTA.

4) Improve the mix of product offerings at its Mexican stores.

Offer more products sold well in place of those sold bad

5) Use its purchase volume to gain leverage with suppliers, bargaining down prices in return for large purchase volumes

6) Decide to take advantage of the economic slump to build its market share.

l Wal-Mart uses its competitive advantage to develop successful.

1) Hub-and-spoke-based distribution system

This system allowed Wal-Mart to rapidly replenish stock in its stores, while keeping the amount of stores space needed for inventory to a minimum, can cut down inventory and logistics costs.

) Computer-based information systems

It can be used to determine pricing and stocking strategy and to better manage inventories.

) Dynamic and egalitarian culture and control system

By such means, Wal-Mart creates incentives for associates and managers to give their best for the company.

Wal-Mart always keep the point �every day low prices” and pass more prices on to consumers, enabling the company to gain market share and remain profitable. So compared with other companies, Wal-Mart use the long-time, flexible and successive foreign growth strategy to develop the market successfully.

5ï¼Å½If Wal-Mart can succeed in Mexico, it can probably succeed in most countries. Discuss this statement. Is it correct?

If Wal-Mart can succeed in Mexico, it can probably succeed in most countries. Discuss this statement. Is it correct?

Firstly before answering this question, we should consider what the main things are for one international company leading for success.

There are number reasons why the corporation succeeded in the expansion. The cores are the two main elements coming from the external and internal sides

l External side

The environment represents the set of uncontrollable forces to which the firm must adapt its marketing mix.

1) Economic environment

International expansion is affected by the economic environment in two respects by the global economy and secondly by the individual economies of the targeted countries

A. Government policy and regulation; the change of government

a. The balance of payments of one country measures the flow of the transaction between residents of that country and the residents of the rest of the world over a period of time

b. the tariff and quotas and protectionism are the restrictions to protect local market

c. Stable economic environment and continuous economic growth is the basic reason for some company looking for where is right place for the international expansion.

d. The government economy policy of trade and investment, monetary policy

e. living and consumption standard

B. International institutions and agreement

The trend to free market will help the company to fulfill the international strategy, otherwise it will become the big barrier. The segment market defined is very important for one company strategy expansion

) Political environment

Political conflict may be lead to instability, but it may or may not affect business operations.

) Social Cultural environment the language and habits are the typical things, which the international expansion is facing. This will contribute to the formats of distribution system and purchase chain.



4) The legal environment

Legal system does vary from country to country in terms of their complexity, interpretation and application and the global marketer must be aware of how the individual legal systems could affect the company̢۪s business practice.

The international expansion has meant that firms need to plan on a global scale to remain competitive and successful

l Internal side

1) Mission for management

Firms internal environment and reflect the constraints which are imposed by the company on the marketing strategy decisions

) The structure of management

) Operation format

If the format can be connected well with the target market,

How to change your present format to complying with the requirement of potential markets

So we can not use yes or no to answer the question

External and internal environment will determine its potential opportunities and chances to be successful As for any strategy of one company should not be fixed to use for all different environments. If the international expansion strategy is established, how to take actions and how to establish the project, it should be precise even different, which should be flexibly used in real practice.

So when cannot say if you succeed in one country which will typical meant successful in other countries.



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Monday, October 22, 2012

Brian's Winter

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Brian’s Winter was written by Gary Paulsen. This book’s genre is adventure.

A boy gets in a plane crash and has to find shelter until help arrives. What he doesnt know is that help will not arrive until after winter is over. This story takes place in the wilderness by a pond. The main conflict is the boy trying to beat the odds and fight the harsh winter. The climax is when a gargantious bear attacks Brian’s shelter. Almost everything he had salvaged from the plane wreckage and from the wilderness was destroyed. At the end of the story a plane noticed Brian and came to rescue him. Come to find out, he didn’t want to leave.

The book is about a thirteen-year-old boy who is stuck in the wilderness because he was traveling to his father’s oilrig in Washington. He has to find his own food and supplies. He does find some things from the plane. For example A small rifle, blanket, cooking utensils, and other things. His first big kill when he went hunting was a moose. The second encounter with a big animal was the bear. The main character is Brian, the boy stuck in the wilderness.

The part I liked most was when Brian rigged up his machine to go to the bottom of the pond to get things from the plane. My least favorite part was at the end when they brought up the Indians who had been there the whole time.

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I would recommend this book to anyone who likes adventure books. It has some very suspenseful times and it is sometimes funny because of the stupid things the characters do. The only bad part of the book is the very ending. The Indians don’t really make sense because if they had been there the whole time then they would have met Brian and helped him out. I would rate this story a on the story scale.



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Thursday, September 27, 2012

An Evaluation of the Tourism Industry in the South West of England and a Segmentation Analysis and Determination of Relevant Target Customer Groups

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Executive Summary

This report details an evaluation of the tourism market place in the South West of England looking at changes in the market and the factors (PESTE Political, Economic, Socio-cultural, Technological and Ecological) affecting the tourism industry.

A segmentation analysis was carried out looking to identify target customer groups for Tintagel Castle, Cornwall.

The principal groups identified were the visiting friends and relatives category and family groups including pre-family, with family and post family.

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The buying criteria that the target groups will apply when deciding which attraction to choose to visit were briefly considered.

Table of Contents

Page

1.0 Introduction

.0 Market Place Evaluation

.1 Segmentation 4

. The Segments 5

. Targeting the Segments 7

.4 Buying Criteria of the Segments 8

.0 Conclusions

4.0 References

5.0 Bibliography 10

Appendix 1 - Tourism in the UK

Appendix � PESTE Analysis of the South West Tourism Market

1.0 Introduction

In order to maintain or increase the number of visitors to the castle it is important that we understand and meet the needs of the visitors. As such it is important that we can analyse the market place and identify who are our primary visitors and target our marketing at the groups or “segments” that will maximise our visitor numbers through appropriate channels. To determine market segments and decide which market segments to target it is first necessary to carry out a market place evaluation. Broadly this would encompass political, fiscal, economic, legal, technological and ecological factors that will affect the tourism industry in the UK as a whole and more specifically issues relating to the South West.

• Aims and Objectives

To carry out a market place evaluation of the South West of England region and to conduct a segmentation analysis of the local population. To determine the relevant target customer groups and consider the criteria they will apply to the buying decision.

.0 Market Place Evaluation

Tourism in the UK is not a growing industry for many reasons, see Appendix 1. The South West plays a major part in this industry attracting more visitors than any other UK region (outside of London)1. This means that tourism in the South West is the primary source of employment and prosperity. See Appendix for a full PESTE analysis of the local market place.

.1 Segmentation

Segmentation is the dividing of the market by identifying and profiling distinct groups of potential customers. These groups of potential customers would share similar wants and needs. These groups must be viable and reachable to be used as targets. Broad segmentation groups would include geographic, demographic and physcographic factors. Geographic factors would encompass both overseas visitors and UK holiday makers. Demographic factors which would be relevant would include income, social class, life stage; pre-family, with family, post family. Physcographic factors are also important as people with different lifestyles, personalities, and values will regard the South West in very differing views. By targeting the market segments that present the greatest opportunity and customizing our services and products, and thereby selecting the best distribution and communication channels it should be possible to increase visitor numbers and maximise profits.

To target the segments it would be best to draw up a marketing mix for each segment presenting the best opportunities. Before doing this it is necessary to make sure each segment is viable. That it is measurable; is there enough people in the segment to be sustainable; actionable, can we adapt to suit our offering to this group; and accessibility, can we reach our target market both geographically and through media.

Market Research has showed the following breakdown of visitors’ profiles to attractions in the South West in 001 see Table 1 below.

Type of Visitor %

Local Residents and their visitors holiday 6.1

UK holiday makers .1

Overseas holiday makers 10

Groups 11

Business 0.7

Others .0

. The Segments

• Visiting friends and relatives (VFR)

VFR is a very important category with the South West attracting more VFR trips than other UK regions. Last year 75% of adults in the SW region had visits from friends and relatives1. Tintagel is an ideal destination for this group.

Characteristically this group has and even distribution through the year with a peak at Christmas. They have a higher tendency for younger age groups; this is reflected in the relatively low household income. The majority will travel by car and therefore are very mobile.

Many will be visiting for a christening or wedding or other family occasion but a large number will combine this with a holiday.

• Family Groups

Pre-family holiday breaks

These are characterised by younger age groups, couples and singles either traveling alone or in groups. They have a high disposable income as they do not have so many responsibilities and will tend to head for livelier towns and cities. They look for a wide variety of activities and are quite likely to visit Tintagel, if it is not too far to travel. They would want to be with similar groups of people, so not older people or families. Internet and independent travel will be a strong feature for this group and many may arrive at short notice with little planning.

Family Holiday Breaks

Usually the less affluent in this group make a visit their main holiday but would rather go abroad. The trip to the South West may often be a secondary trip for people within this category who have a little more disposable income. The age group within this group is very wide, many having younger children. This leads to Devon and North Cornwall being very important due to the travel distance and time taken to get there, they will be drawn to the coastal and countryside areas. The wife/mother is the primary decision maker on these days out. This group will be seasonal, only really visiting during school holiday periods. Many families are looking for a ‘break’ from the children as well as looking to spend time participating in activities with them. The beaches in the area are free and therefore a big attraction when the weather is good. Therefore it is necessary to be attractive price wise as a family day out can be expensive. A good idea is to promote the beach near the castle (however access to the beach is difficult). Older children are more likely than young children to appreciate the historical aspect if it is portrayed in the right way.

Post Family Holidays

This is a very large segment for the South West market and the overall age in the UK rising so this segment is becoming larger. The overall age is probably 55+ and they usually would not be looking for activities primarily aimed at younger age groups. Attractions that would appeal are historic buildings, gardens, and leisure walks, all of this available at Tintagel. They primarily want breaks outside of school holidays as they will be avoiding families and children and will be more interested in exploring the countryside, visiting gardens and historic properties. Some of the older members of this segment will have mobility issues which would prohibit them from visiting due to the steep steps up to the castle.

• Activity Based or Special Interest Holidays or Tour Groups

People may be visiting as part of a walking club or historical group or a coach tour. These would normally be organized for the individual. This is not a large group and may encompass older post family groups. Many in this group will be looking for value for money and hoping that by traveling as a group they will be getting discounted entry to attractions but a castle visit is probably high on the agenda for the group.

• Overseas

Of overseas visitors Americans are largest in numbers and are drawn to historical sites but as the dollar has been weaker and due to global terrorism situation many Americans are staying in and holidaying in the US. The UK is an expensive destination for many foreigners to visit but for many the cultural and historical aspects of the UK can overcome the cost. Overseas visitors are likely to spend more than UK holiday makers.

. Targeting the Segments

So having identified the segments it is necessary to identify which segments should be targeted. It is necessary to consider the viability by looking at the attractiveness, profitability and accessibility of these segments.

It can be seen from Table 1, page 4, that the local residents and their visitors combined with the UK holiday makers are by far the largest numbers of visitors to the South West. Overseas visitors are in the minority so due to size and accessibility of this segment it should not really be considered viable. Many people within this group will naturally fall into other segments once they arrive in the South West. Group visitors again are a smaller percentage of the visitors to the region and are not really a viable group for targeting. However many traveling with tour companies may find Tintagel Castle on their tour itinerary as most travel organisers to the South West will be familiar with Tintagel Castle, this also makes targeting this group unattractive.

This leaves the VFR group and the family (pre, post and family) groups. All these groups are viable; they account for sufficient visitor numbers, the castle is able to offer something that suits their needs and wants, it is possible for us to reach and target these groups. The VFR group is perhaps the most viable group due to the ease of access for targeting. Most of the visitors themselves will not be responsible for the decision on where to have the day out but the local host will be. This makes marketing locally very important. When developing the marketing mix for these groups it would be necessary to take into account timing due to the seasonal variation in the visitors with family groups coming during school holidays, post-family groups coming outside of school holidays.

.4 Buying Criteria of the Segments

• Visiting Friends and Relatives (VFR)

The wants and needs of this group are usually (combined with hosts) interesting places to visit or days out. VFR will be looking for an activity that will be sociable and affordable. The hosts need to see the castle as something they can be proud to have locally and many of the hosts will be repeat visitors.

• The Pre-family Group

This group will need to have easy access to information and directions, the internet being an appropriate media, as availability of information will strongly influence their choice of attraction. They will be looking for an interesting and pleasant sightseeing day.

• The Family Group

This group is looking for entertainment for fair or wet weather and to include activities suitable for children. They will be looking for educational, interesting and fun days out. Cost is quite important for families. Families with very young children they will be looking for push-chair access which may be an issue due to the steep steps to the castle.

• The Post Family Group

This group are likely to be looking for such a historical site as a day out. It needs to offer value for money and be a pleasant, enjoyable and relaxing visit.

.0 Conclusions

It has been shown that the overall UK tourism market is not growing but that the South West region has a substantial share of that market. From the segmentation analysis carried out it was determined that the visiting friends and relatives group and the UK family groups were the best groups to target and the criteria that they will apply to the buying decision was discussed

4.0 References

1 LEONARD, G., State of Tourism South West � Intelligence Report [online], South West Tourism, Kingsbury Shaw, August 00 [cited October 7th 00]. Available from http//www.kingsburyshaw.com/tourismreport

KOTLER, P. Marketing Management. 11th ed. USA Prentice Hall, 00. ISBN 0-1-047150.

Promoting British Tourism [online], Her Majesty’s Stationary Office, Norwich. [cited October th 00]. Available from http//www.number-10.gov.uk/output/search.asp

4 Key Facts of Tourism for South West England 00, [online], STAR UK (Statistics on Tourism & Research), Exeter, 00 [cited th October 00. Available from www.staruk.com

5 . Billion pound foot-and-mouth Cost to English Tourism [online], Ananova Ltd., [cited] 7th October 00]. Available from www.ananova.com/news/story/sm_471.html?menu=

6 Germany � Economic Conditions and Prospects [online], UK Industry, Marketing Advice for the UK Tourism Industry, [cited th October 00]. Available from http//www.tourismtrade.org.uk/uktrade//marketintelligence/marketnews/germany.asp?componentid=1086&sourcepageid=1171#pagetop



7 Inbound Tourism � UK � June 001 [online], Leisure Intelligence Travel, Mintel International Group Ltd, [cited th October 00] Available from http//reports.mintel.com

5.0 Bibliography

McDONALD, M. Marketing Plans. 5th ed. Oxford Butterworth-Heinman, 00. ISBN 0 7506 565 5.

JOBBER, D., FAHY, J. Foundations of Marketing. Maidenhead Mc Graw Hill, 00. ISBN 0 07 708668.

Appendix 1

Tourism in the UK

Tourism in the UK is one of the largest industries contributing 74 billion pounds in 001 and employing .1 million people, about 4.5% of the UK economy. It is however not a flourishing industry as the annual bed space occupancy in the UK shows this5.

17 18 1 000 001 00

Bed-space Occupancy % 44 4 4 4 4 44



On a global scale there are a number of reasons for the lack of growth in the industry; including the strength of the pound, making the UK very expensive for many foreign visitors and the Asian economic crisis in 18. In more recent times the foot and mouth disease outbreak in 001 reduced tourist numbers, it was estimated that the tourism industry lost . billion pounds through foot and mouth5. This was followed by the terrorist attack in the US which deterred many people from traveling. 00 showed an improvement but the figures are likely to be down again for 00 owing to the war in Iraq and the outbreak of SARS which will have curtailed tourist activities. Other issues have included the opening of the Channel Tunnel and decreased air fares which have made it easier for people to visit the UK. Conversely it is easier and more affordable for UK residents to go abroad. Studies carried out have shown that the UK tourist is more important to the South West than the overseas visitor. Many people see public transport as being a problem in the UK with some very publicly highlighted train crashes raising safety fears, and service disruptions due to many factors causing reliability fears.

Appendix

PESTE Analysis of the South West Tourism Market

• Political

The UK’s stance on the Iraqi war has not been popular with many countries and the UK may be boycotted by some overseas visitors for example Germans strongly disagreed with the Iraqi policy6 but Germany, after the USA, has the highest number of visitors to the UK (UK Tourism Survey 00)4. . The abolition of ‘duty free’ within Europe may reduce the number of UK tourists traveling abroad. Overall the UK is seen as a relatively stable country, although there are some fears regarding terrorist attacks.

• Economic and Occupational

This is very important with job status and earnings have a large bearing on where and how long people will holiday for, the South West is often seen as a second, shorter holiday with many people, in the position to do so, taking overseas holidays as the main holiday. Many less affluent people will choose to take a UK holiday, those who cannot afford to take a longer break and have less time may not travel all the way into Cornwall but Tintagel is not as far as many other attractions. Transport and travel in the UK is expensive, many people see public transport as prohibitively expensive for families and groups and shows that between 71% and 85% used the car as the main mode of transport for their trip, despite the high fuel prices4.



• Socio-cultural

People are greatly affected by culture, this is the fundamental determinant of a person’s wants and behavioursp18 and will define the social classes.

Peoples decisions regarding vacations will be greatly affected by reference groupsp188 primary reference groups being family and friends which are highly influential on decisions. This is important for the South West as large numbers of tourists fit into the VFR (visiting friends and relatives) group. Market research has shown that within the social groups women usually make or have significant influence on decisions regarding holidaysp188. Other social factors include roles in society, status, clubs and organisations many people perhaps visiting as part of a nature society, rambling club, historical interest group or other organized tour.

On a personal level, age and status in the lifecycle will be important with holidays greatly shaped by families i.e.; singles, young couples, young families, older families and empty nesters (older couples whose children have left home). For example couples with very young children or the elderly or those with limited mobility may not find the castle suitable for access issues. Younger couples may be looking for something more exciting. Therefore these changes in lifestyle are important.

People’s beliefs and attitudes to the SW as a whole and their perception of it is very important. The perception of the South West as a region is crucial to the success of the region. It figures favourably in many reports with people citing good beaches, better weather than other areas of the UK, a wide range of activities, good scenery and countryside, a friendly and relaxed atmosphere. However on the downside other people also perceive the South West as being heavily congested and having bad weather, also the majority of people surveyed would rather go abroad.

• Technological

Changes such as the opening of the channel tunnel have made travel for Europeans easier though this may not be significant for the South West. The increasing use of the Internet has led to a decrease in tour groups8 and an increase in the number of independent travelers.

• Ecological

The weather in the UK is unpredictable and unreliable; this deters many overseas visitors and UK visitors alike. However the South West region is perceived as having some of the best weather in the UK and combined with the long sunny conditions of 00 this may be a plus point for the future.

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Sunday, August 19, 2012

healthlite yogurt

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Background

Healthlite Yogurt Company is a leader in the yogurt and related healthy products marketplace in the U.S. Healthlite has corporate headquarters in Danbury, Connecticut and has several production plants in different states in the U.S.A. Healthlite has grown rapidly and is looking toward improving its business by making its sales and ordering processes more efficient.

Identification of Major Information Systems Issues

· Inefficient communications and systems enterprise-wide

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· Inefficient order process

· Inefficient reporting process between sales and corporate

· Accounting discrepancies between sales and headquarters

· Conservative nature of management and rapid growth of the company contribute to information systems inefficiencies

· Management wants to reduce headcount by implementing a more effective system

Analysis of Issues

The purpose of this analysis of issues is to provide an in-depth look at the major information systems issues and to provide ways in which Healthlite can resolve the problems identified above. The Organization Overview, Major Business Processes, and Analysis of Problems explain the inefficiencies in the systems. The Management Plan, Major Business Process Changes, Major New Technology Components, Steps to Handle Conversion, Quality Assurance Measures, and Organizational Impact sections address the ways to resolve these inefficiencies.

Organization Overview

In the following paragraphs, the overview of the Healthlite Yogurt Company will be discussed according to the listed categories organizational structure, products, and major business processes.

Organizational Structure

· Healthlite has corporate headquarters in Danbury, Connecticut and several production plants in New Jersey, Massachusetts, Tennessee, Illinois, Colorado, Washington, and California.

· At the corporate headquarters, Healthlite has a central mainframe computer system to maintain most of the major business processes. In each production plant, a minicomputer system connects to the mainframe and receives customer orders and related information from headquarters.

· Healthlite has experienced rapid growth for the past five years, and it also faces local competitors entering the market who offer faster delivery and lower price.

· Customer files are maintained at corporate headquarters, and credit verification is determined there as well. This information can be transferred to the minicomputers in the local production plants.

· Healthlite has 0 sales regions, each with approximately 0 sales representatives and a regional sales manager. Additionally, Healthlite has a 1-person marketing group at corporate headquarters.

· Salespeople can retrieve and view customer information in the regional office to get customer data. However, they must mail manual sales reports to the corporate headquarters.

Products

· The core products of Healthlite are yogurt and health-related products. Yogurt has a very short shelf life, and it must be moved very quickly.

· Because Healthlite has a series of yogurt-based products, such as frozen desserts and low-fat salad dressing, it needs to adjust its share of shelf space in the grocery store to have more shelf space to display its new products.

· Healthlite is also facing the pressures from local competitors, because local competitors are offering faster delivery from local production centers and are providing lower prices to capture the current market.

Major Business Processes

Order Processing

The current ordering process is described in the following

· The current system requires sales representative to generate customer orders and write hard-copy tickets to place orders manually through the mail or by fax to headquarters. Each ticket lists the amount and kind of product ordered by the customer account. Often, orders are delayed when the fax machines break down.

· Approximately 0 workers at corporate headquarters receive the order information and then open, sort, and enter the order tickets from regional office. Those workers handle 500,000 order tickets per week.

· The complete ordering information is transmitted every evening from the mainframe in corporate headquarters to minicomputer at each of Healthlite’s processing sites.

· The processing center produces the amount and type of yogurt ordered and then ships the orders. The shipping managers at the processing centers assign the shipments to various transportation carriers to deliver the products to regional receiving warehouses.

Sales

· Each salesperson is able to store and to retrieve data for assigned customer accounts using the minicomputer system in the regional office.

· Salespeople need to produce individual reports, including printouts of orders, rejection notices, and customer account inquiries. These reports are printed at the regional offices and then mailed to the marketing group at corporate headquarters.

· The sales and marketing data are manually maintained in the regional office while the corporate headquarters only stores the consolidated enterprise-wide files for customer accounts, orders, and billing data in the mainframe system.

· Because sales and marketing data are maintained manually in the regional office, managers sometimes need to make telephone calls to subordinates and piece the information together to get the up-to-date data.

· The present results from the current sales process follow.

o Salespeople are choking on paper by manually completing two forms per customer order and sales reports. Because salespeople often have almost 80 customers, they delay the ordering process by having to complete so much paperwork delays.

o Because of the delays in processing customer orders, Healthlite spends between 4 and 14 days to process and ship an order, depending on mail delivery rates.

o Accounting discrepancies of $1.5M annually exist between the sales force and headquarters.

Marketing

· The marketing group in the corporate headquarters needs sales and marketing information to do product planning, to make pricing decisions, to complete product advertising and promotional campaigns, and to forecast market potential for the new and existing products.

· Needed sales and marketing data, such as sales and advertising expenses, promotional campaigns, and customer shelf space devoted to Healthlite products, are maintained manually at the regional offices.

Analysis of Healthlite’s Problems

What are Heathlite’s problems?

· The order process is slow and inefficient. Inefficiency comes from writing customer orders manually and from the lack of reliability of the current fax transmissions. Also, duplicate data entry happens in both regional offices and corporate headquarters, which generates more errors.

· Accounting discrepancies between the sales and headquarters have reached $1.5 million.

· Inefficient systems

o Duplicate data entry and processing increase inefficiency and generate more manual errors.

o Information is fragmented in both the regional offices and the corporate headquarters. Healthlite does not have a central location to unify and to store useful information for management decision-making.

o Healthlite’s inefficient distribution system fails to send the right goods to the right places on time.

· Inefficient communications

o The current communication method is not efficient and reliable because communication between sales managers and sales representatives has been primarily through the mail or by telephone.

o Sales managers have to combine sales data manually by phone call to subordinates or by receiving information through the mail.

· Lack of important decision-related reports for managers

o Management has to generate information for planning and for monitoring the performance of the sales force. Additionally, the information on the performance of specific products, product lines, or brands is compiled manually.

o Management also needs to be able to monitor the efficiency of the distribution of Healthlite’s products and customer services.

How are these problems related to existing business processes and systems?

· Sales and marketing problems have resulted from current inefficient, duplicated, and slow ordering processes, from the lack of a centralized data collection facility, and from regional plants mailing materials to headquarters.

· Communication problems have resulted from Healthlite’s inability to utilize communication technology, such as Internet or Intranet, and from its inability to meet its enterprise-wide communication needs efficiently.

What management, organization, and technology factors contributed to these problems?

· Healthlite’s management is conservative and resistant to change, and they do not have a positive outlook on technology. The only technology on which they support is proven technology.

· Healthlite is experiencing rapid growth, and the current information system is incapable of dealing with increasing sales, marketing, and production tasks.

· The current telecommunication infrastructure in Healthlite cannot meet enterprise-wide communication needs.

· Communication between sales managers and salespeople has been primarily through the mail or by telephone. Because most of internal communications are achieved by mail and telephone, inefficiencies and communication lags are increased.

Management Plan

A project team will be formed to develop the overall management plan to address Healthlite’s existing problems as well as to provide solutions to the problems. Healthlite desires to redesign its order process and related sales and marketing processes to improve efficiency inside the company as well as to increase its competitive advantage in the market. During the system development life cycle, the company can use a joint application development approach, or JAD, to expedite the generation of information requirements and thus greatly help develop the initial systems design. A Gantt chart will be used to depict the overall management plan for improving Healthlite’s problems (see Appendix 1). The Gantt chart includes a list of objectives, a tentative time frame, and major milestones.1 The projected time frame depicted on the Gantt chart will likely change as the project team gets further involved in the development process and defines Healthlite’s system changes.

Assessment of the costs and benefits

Costs

· Investment in the new order processing system and relevant hardware.

· Investment in installing telecommunication infrastructure.

· Outsourcing fee for running a sales-oriented website and an Intranet.

· Personnel cost, such as hiring a systems director and other system specialists.

Benefits

· Increased productivity and lower operational costs from the new order processing system.

· Reduction in employees attributed to order processing system automation.

· More timely distribution of products and services.

· Higher client satisfaction from value-added customer service.

· Improved decision-making through the use of efficient information systems.

· Improved resource control and organizational planning.

· Increased job satisfaction for regional sales people.

Major Business Process Changes

The following major changes are required to achieve the plan.

· Eliminate the use of hard-copy tickets to place orders.

· Enter sales orders directly into enterprise-wide system instead of using workers to sort and to enter order tickets. Allow all systems users to have access to this data for analysis purposes.

· Eliminate the use of the mail and fax machines for taking orders. Orders can be placed directly through the web site.

· Stop mailing printed reports for individual salespeople and sales offices. Salespeople can access the system for needed information at anytime.

· Stop writing and mailing monthly reports from sales representatives to regional headquarters. Sales information will be generated automatically from the system.

· Allow managers to access up-to-date sales data in the new system anytime they want. This eliminates their need to call subordinates and the need to piece information together.

· Improve communication between sales managers and sales representatives. Announce promotional campaigns or pricing discounts by immediately spreading them throughout the enterprise-wide system.

· Deploy Customer Relationship Management tools to help with ordering, customer history management, complaints, and real-time tracking service.

· Reduce the time involved to process orders to deliver shipments more timely.

Major New Technology Components of the Plan

When analyzing Healthlite’s needs to implement technology supporting the new business processes, an enterprise system would best meet the requirements. An enterprise system would link enterprise-wide information processes, thus improving the overall business efficiency. When the entire company is able to use a single software system, all departments can share information freely. Enterprise systems provide companies with an all-encompassing information system technology platform. This technology platform results in a single data warehouse that can be used by different departments to input and to obtain enterprise-wide, standardized information. Further, the system allows for data storage in one data warehouse, which will avoid redundancy and inaccurate information issues. The data should be grouped by processing plants, but accessible to all users. This storage process will allow for differentiation among processing plants while allowing for enterprise-wide search capability. Thus, the enterprise system is key to the Healthlite’s success as it moves into the future.

By installing an enterprise system into the Healthlite business, managers will be supporting business processes that will make the company more efficient. It will allow for scalability and for encompassing all business areas within the system. The enterprise system will allow for centralized data collection and entry. A centralized entry system will result in the reduction of or the elimination of paper passing throughout the company. This system will also provide employees the option of viewing reports on-line that will result in the reduction of printing, which will only be done when necessary. This additional feature will aid managers and market analysts by providing them with the ability to collect more accurate information to assist them in accurate sales planning, decision-making, and marketing strategy development.

Healthlite must also improve the telecommunications infrastructure enterprise-wide. E-mail capabilities will be needed throughout the company in order to eliminate the ineffective communication within the company. Additionally, the company will add Intranet and Internet that will improve its day-to-day operations.

Steps Managers Must Take to Handle Conversion From Old to New

The following are the steps that managers need to take to ensure successful conversion.

· Make sure to get buy-in from senior management. Ensure that senior managers lead the change process.

· Inform employees of upcoming changes and solicit volunteers to form the development team. Ensure that the development team involves both IT and business personnel.

· Throughout the process, involve all employees to ensure their support in making changes, to complete the design of the new system and business processes, and to ensure user acceptance before implementation. Additionally, continuously document the new processes for training and scope change purposes.

· Establish milestone meetings that will address feedback and that will facilitate the conversion process throughout the steps of the development lifecycle.

· Encourage e-mail updates about development productivity from the development team to the users as well as to management.

· Provide training and documentation throughout the process. Also, prepare user manuals prior to implementation.

· Follow the implementation with trouble-shooting user support.

Quality Assurance Measures

Quality assurance is important to ensuring the success of any project. Specifically, Healthlite will need to make all people as well as all functions within the organization responsible for business quality. Some measures as discussed by Laudon and Laudon in Management Information Systems that are important to Healthlite’s business process as the company implements the new system are the following

· Simplify the ordering and sales processes by focusing on reducing the cycle time and by eliminating task redundancy.

· Benchmark changes desired with other companies that have similar processes.

· Use customer expectations and requirements as a guide to improve products and services. Design questionnaires to solicit feedback from customers in the design process.

· Increase the precision of production as the order and selling processes relate to the production process.

Organizational Impact of Solution

When evaluating the business impacts of the implementation of the enterprise system, a number of factors must be taken into account. It is important to keep business employees involved in order to ensure user acceptance throughout the design and implementation of the new system. In the Healthlite business, senior management has voiced the desire to reduce headcount modestly, and thus management must address morale issues when they are adjusting with changes. Management will therefore accomplish this by having open communication and by establishing support groups that will aid employees in the turnover process.

Senior management acceptance and understanding as well as strong management leadership are paramount to a successful implementation. If management does not support the process or if management fails to use the software successfully, they will perpetuate negative attitudes and incompetence. Likewise, the business personnel structure will change from a technology standpoint. Healthlite will need to hire technologically advanced employees to take a leadership role in managing the system. Lastly, the current organization is highly decentralized across various locations throughout the United States, which could create problems in the implementation of the new system and in the design of new processes. Thus, it will be vital to ensure that all of the company’s processing plants are involved throughout the entire systems development lifecycle.

Conclusions

Healthlite has developed a good foundation for developing the company into the future. The company has managed to show success with the business given its existing inefficiencies. The organization utilizes minimum technology to conduct daily activities. Throughout the highly decentralized organization, many people are doing redundant activities and writing much on paper that could be transmitted electronically. Because of the rapid growth of the company, Healthlite needs to implement systems changes quickly to improve its processes and to get the product to the customer in a timelier, efficient manner.

Healthlite’s management is very conservative and needs guidance in determining a proven system that will suit its needs. It is important to ensure management’s support in this process in order to lead the changes effectively and carry the company into the future as well as to guarantee its competitive advantage.

The company needs to understand the importance of using the systems development lifecycle. This process is paramount to developing a system that will be useful for the company. Furthermore, this process is an important tool to establish efficient procedures when developing programs that will best fit Healthlite’s needs.

An enterprise system will be important to leading Healthlite into the future. While the company is presently only focusing on the ordering, sales, and marketing processes, Healthlite management needs to realize that the CRM system is going to need to be scalable for this business. Healthlite’s recent business growth indicates that the company could enjoy growth in the future as well. Thus, Healthlite needs a big-picture perspective to resolve the information systems problems during this system development, acknowledging the potential for further growth.

The company needs to identify and eliminate the sources of the accounting discrepancies between headquarters and the sales force. Management is likely relying on this information to make decisions, and they are thus potentially making business decision on bad data. Prior to implementation, management needs to resolve these problems such that they do not perpetuate through the new system.

Management needs to realize that it will take some time to recognize the headcount reductions. In order to do a successful implementation, all employees will be needed to ensure a smooth cutover. Once the learning curve of the new system has been overcome, management can consider its headcount reduction.

Recommendations

· Healthlite should install an entire enterprise system and not limit itself to the CRM component. However, Healthlite could use a phased approach toward implementing the enterprise software, starting with the order and sales process.

· The systems development team needs to focus its development process on eliminating the existing business inefficiencies in manual reporting, hand order-tickets, and mail and fax order taking. Additionally, the development team needs to follow the systems development lifecycle to establish its new CRM system.

· Representatives of all users need to be involved in developing the system, and all users need to be informed of upcoming changes.

· Healthlite should implement e-mail and Intranet use to improve its internal communications and productivity throughout the entire business.

· The company needs to focus on providing value-added customer service by involving the customers in the design process as well as using questionnaires to solicit feedback from customers on a regular basis.



Please note that this sample paper on healthlite yogurt is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on healthlite yogurt, we are here to assist you. Your cheap custom college paper on healthlite yogurt will be written from scratch, so you do not have to worry about its originality.

Order your authentic assignment from Live Paper Help and you will be amazed at how easy it is to complete a quality custom paper within the shortest time possible!