2 DB Post Replies 450 words a piece !!! Look at the attached rubrics for details 3 References

Running head: GROUP DB FORUM 3: PART 1 1

Group Discussion Board Forum 3: Part 1

Gary Daniel

Q1 Chapter 7: Mass customization of products has become a common approach in the manufacturing organization. Explain the ways in which mass customization can be applied to service firms as well.

Mass customization (MC) can be defined either broadly or narrowly. The broad, visionary concept was coined by and promotes MC as the ability to provide individually designed products and services to every customer through high process agility, flexibility, and integration. Many authors propose similar but narrower, more practical concepts. They define MC as a system that uses information technology, flexible processes, and organizational structures to deliver a wide range of products and services that meet specific needs of individual customers, at a cost near that of mass- produced items (Roy, Komma, & Kumar, 2013).

According to Daft R., (2016) mass customization refers to “using mass-production technology to quickly and cost-effectively assemble goods that are uniquely designed to fit the demands of individual customers." ( p. 271). Service firms are firms that provide a service for a fee. Examples of these types of companies are law firms, accounting firms, real estate agencies and graphic design firms. It is obvious how mass customization applies to the manufacturing industry, but how does this practice fit with service firms?

One example mass customization is applied in a service firm is to the banking industry. The banking industry took a major hit during the worldwide economic downturn in October 2008. To gain consumer confidence, banks opted for a strategy that centered primarily in consumer trust with the goal to increase customer retention (Harmsel, 2012). In this case, IMG offered the collection of unauthorized overdrafts on business checking accounts to its corporate clients. This service was based on the amount of debt and the specific customer. The higher amount the debt, the more severe the treatment (Harmsel, 2012).

As a service firm, IMG offered many other options to its customers. Since service firms do not manufacture products, they can only offer options to best fit a customer’s needs. However, in IMG’s case, what they can offer is considered as ‘Regular Standardized.’ Customization is only possible by the user. The customer cannot change the service, it this case the way the debt is collected. The only option the customer has is to pay the debt and end the arrangement (Harmsel, 2012).

Other examples of mass customization are as following:

Levi Strauss, an early innovator, using the concept in 1994 with its "Original Spin" jeans for women, which leveraged technology to measure customers in its stores and send their details electronically to its factory.

Dell Computers, whose customers design their personal computers online. After that, Dell assembles, tests, and ships them as requested at the last minute before delivery (a good example of the use of the concept of “postponement”).

Ford Motor Company allows customers to build a vehicle from a palette of options online and BMW claims that no two of its new cars are identical. (Myerson, 2014).

Q2 Chapter 7: A top executive claimed that superior management is a craft technology because the work contains intangibles (such as handling personnel, interpreting the environment, and coping with unusual situations that have to be learned through experience). If this is true, is it appropriate to teach management in a business school? Does teaching management from a textbook assume that the manager’s job is analyzable and, therefore, that formal training rather than experience is most important?

Leadership and management go hand-in-hand. The difference is they, not all people are meant to be leaders, but everybody will be put into a situation to manage something. Regardless of the resource, at some point managers will be direct control of people, capital, inventory, or assets. It is true that people gain knowledge through experience, but managers should have some idea what to expect.

Implementation can be taught. Whether it is taught in the classroom or through life-lessons is debatable. Charles Scholhamer, Jr. once said about teaching implementation, “There is no substitute for experience…(implying the need to) integrate older more seasoned…mentors and coaches…into the classroom” (Heskett, 2003). There is always room to teach management in business school. Strategy and implementation are two important lessons taught in management courses. Because it is better to take a mediocre strategy superbly implemented than a superb strategy mediocrely implemented (Heskett, 2003).

Q3. Chapter 8: Do you believe that technology will eventually enable high-level managers to do their job with little face-to-face communication?

The text (Daft R., 2013) states that sophisticated computer-based systems have given managers the tools to improve performance within their departments and the organization as a whole. As a result, technology has changed the landscape of personal communication. Email, Twitter, and texting have successfully removed the personal touch when communicating with colleagues and friends. People prefer to communicate through devices rather than face-to-face. Society would rather email than meet, or text rather than talk on the phone (Keller, 2013).

Paul Booth, the assistant professor at DePaul University in Chicago, notes three key issues regarding how social media affects communication today. First, people tend to trust people on the other end of their social media communication, so the messages are more open. Next, social connections are not fortified with social media as compared to face-to-face relationships. How many people have 532 “Facebook friends,” but never leave their house? Finally, people tend to only follow or connect with like-minded individuals. This leads to a lack of diversity and single-minded viewpoints (Keller, 2013).

As far as efficiency, technology has been helpful. Technology has shank the world and making it a global workplace. This has enabled employees to work from remote areas and expand the workday. Additionally, it has created balance in the lives of the American worker. Employees can attend conference calls while attending their child’s soccer game. Embracing the bring your device to work attitude, employers have created a better connection for their employees in the workplace (Burg, 2013).

Q4. Chapter 9: Look through several recent issues of a business magazine (Fortune, Business Week, Fast Company, etc.) and find example of 2 companies that are using approaches to busting bureaucracy. Explain the techniques that these companies are applying.

One way companies are busting bureaucracy is with technology. Technology has transformed business over the past twenty years. The evolution of social media, email and virtual personal networks has created a portable, real-time work environment. The capacity of information to be processed, sent, and received has drastically reduced response times (Hamel, 2014). Digital communication has created a more exclusive communication system and a way for managers to ensure everyone is one the same page with regards to strategy and company goals. Additionally, the Internet has altered the relationship between consumers and producers of goods. Not only is the Internet a vehicle for marketing and advertising, but it is also the foundation for a new industrial base (Hamel, 2014). It has lowered the cost for companies to enter markets while empowering the consumer with choosing the best product to suit their needs.

Another way companies are busting bureaucracies with management techniques. Steve Denning (2011) lists five interlocking principles of traditional management for a new age. The first is shifting goals from making money for shareholders to satisfying the customer. The approach gives the consumer a voice and contributions from every employee. The second principle is shifting the role of managers from controller of individuals to enabling self-organization teams. Managers provide employees clear guidance to the customer and empower them to remove barriers. The third principle is dynamic linking. This is work that is done in short cycles with direct feedback on completed work from customers at the end of each cycle (Denning, 2011). The fourth principle is to change from preoccupation with economic value to values that grow and sustain the company. This principle puts in place practices that identify and addresses performance obstacles. The fifth and final principle is shifting top-down communication to horizontal, adult-to-adult conversations. Creativity is encouraged, and this principle leverages the talent and imagination of the workforce and managers (Denning, 2011).

Q5. Chapter 9: Do you believe that a no-growth philosophy of management should be taught in business schools?

The no growth philosophy should be taught in business school. Teaching a no growth philosophy will prepare future managers how to react when faced with organizational decline and downsizing. Daft (2016) lists three factors those are responsible for causing organizational decline. The first is organizational atrophy. “This occurs when the firm gets older and the organization becomes inefficient and overly bureaucratized.” (p. 368). It becomes difficult for the firm to adapt to changing environments. The second is vulnerability. “This reflects the inability of an organization to prosper in its environment, which is normally seen in small firms” (p. 369). The final factor is environmental “decline or competition” (p. 369). This is there are reduced resources available to support the firm. When faced with this dilemma, organizations downsize operations or shift to another domain (Daft R., 2016).

When taught in business schools, students know what to expect when faced with no growth. Theses are real situations in today business environment, and if managers cannot recognize these declines, they will not know how to react. Managers have options they can take to minimize organizational declines. The types of reaction managers can take a search for alternatives, communicate more, provide assistance to displaced workers, and help the survivors thrive (Daft R., 2016).

How can/should a biblical worldview be applied?

It is written in 1 Corinthians 14:40, “But all things should be done decently and in order.” This verse is a good rule for managers to follow. Whether it is considering mass customizations within the company, adapting to new technologies to move a business, or tearing down bureaucracies to stay on the cutting edge of a changing environment, managers need to do things in a certain order. They cannot succumb to the pitfall of moving too fast or overreacting to a situation. Managers must game plan and make sound decisions based on the situation at hand.

Burg, N. (2013, December 10). How technology has changed workplace communication. Retrieved from Forbes.com: www.forbes.com/sites/unify/2013/12/10/how-technology-has-changed-workplace-communication/

Daft, R. (2016). Organization theory & design (12th ed.). Boston, MA: South-Western, Cengage Learning.

Denning, S. (2011, December 5). The mix: Busting bureaucracy with radical management. Retrieved from Forbes.com: www.forbes.com/sites/stevedenning/2011/12/05/the-mix-busting-bureaucracy-with-radical-management/

Hamel, G. (2014, March 10). The next tech revolution: Busting bureaucracy. Retrieved from Fortune.com: www.fortune.com/2014/03/10/the-next-revolution-busting-bureaucracy/

Harmsel, M. t. (2012). Mass customization as a solution for the service industry. University of Twente. Enschede: University of Twente.

Heskett, J. (2003, February 3). Can business schools teach the craft of getting things done? Retrieved from Harvard Business School: www.hbswk.hbs.edu/item/3299.html

Keller, M. (2013, May/June). Social media and interpersonal communication. Social Work Today, 13(3), 10.

Myerson, P. (2014, August 14). Mass customization…A lean and agile supply chain required. Retrieved from http://www.industryweek.com/blog/mass-customization-lean-and-agile-supply-chain-required

Roy, N., Komma, V. R., & Kumar, J. (2013). Mass customization in supply chain management environment: A review. 7(2), 249-254. Retrieved from http://waset.org/publications/4162/mass-customization-in-supply-chain-management-environment-a-review