Operations Management

Operations Management

5 P’s of operations management

•Product

•Plant

•Processes

•Programs

•People

The design process

•An organization can gain a competitive edge through designs that bring new ideas to the market quickly.

Product design specifies the materials to be used, the appearance of the product.

Service design specifies the psychological benefits the customer is to receive from the service.

Process Design

 Process Designs defines the steps and processes in sequential order, detailing all the inputs and specifications of tools, machines, operations and/or processes to produce the desired product with the shortest possible route and best of engineering practices so as to meet the objects of quality, quantity and economy in the defined time frame.

Functional Design

•It is concerned with how the product performs.

•The two characteristics considered during the phase of the design are

-Reliability

-Maintainability

Reliability

•It  is the probability that a given part or product will perform its intended function for a specified length of time under normal conditions of use.

•The reliability information from product warranties.

•E.g.  A hair dryer might guarantee to function (blow air with a certain force at a certain temp.) for one year under normal condition of use. (defined to 300 hours of operation)

Maintainability

•Also known as  serviceability refer to the ease and/ or cost with which a product or service is maintained or repaired.

•Products can be made easier to maintain by assembling them in modules, like computers so that entire control panels cards or disk drivers can be replaced when they malfunction

DFMA

•Design For Manufacture and Assembly is the process of designing a product so that it can be produced easily and economically.

•DFMA not only improves the quality of the product but also reduces both time and cost  of the product design and manufacture.

Plant location

•Plant location can be understood as the function of determining where the plant should be located for maximum operating economy and effectiveness.

•Selection of a place for locating a plant 

Plant layout

•When a new plant is erected the question of placement of machinery, tool rooms , the location of the store and the like receive a priority consideration .

Definition

•A plant layout refers to the arrangement of machinery, equipment and other industrial facilities such as receiving and shipping departments, tool rooms, maintenance rooms and employee amenities. 

Click here : Factors influencing the layout

Factors influencing the layout

Factors influencing the layout

1. Materials

2.Product

3.Worker

4.Machinery

5.Type of the industry

6.Managerial policy

7.Location

The principles of layout

•The Principle of minimum travel

•Principle of sequence

•Principle of usage

•Principle of compactness

•Principle of safety and satisfaction

•Principle of flexiblity

•Principle of minimum investment

Motivation

Motivation

o  Motive : is the inner state that energises , activates & directs or channels the behaviour of individuals towards certain specified goals.

o  Motivation : signifies the level, direction & persistence of effort expanded in work.

o  Motivating : when one individual induces another person to channel his/her energies in the right direction.

Definition

o  Stephen .P.Robbins : “Motivation is the willingness to exert high levels of effort toward organisational goals, conditioned by effort ability to satisfy some individual need”.

o  Fred Luthans : “Motivation is a  process that starts with a psychological or physiological deficiency or need that activates behaviour or a drive that is aimed at a goal or incentive”.

Theories

Content theories

o  Maslow’s Need Hierarchy

o  Alderfer’s ERG theory

o  McClelland’s theory

Process theories

o  Adam’s Equity theory

o  Vroom’s Expectancy theory

o  The Porter & Lawler model

o  Goal setting theory

Content theories: examine the needs/motives of individuals that influence their behaviour.

Cognitive/process theory: examine the dynamic process of how people rationally assess work situations & make rational decisions as to whether , & to what extent ,they ought to engage in work behaviour.

         

                         

ERG theory

o  Existence: denotes the desire for psychological, material &physical wellbeing.

o  Relatedness : for satisfying interpersonal relationships & friendships;

o  Growth : for personal growth & development.

McClelland’s  theory(1961)

o  achievement motivation (n-ach)

o  authority/power motivation (n-pow)

o  affiliation motivation (n-affil)

o  David mcclelland's needs-based motivational model

o  These needs are found to varying degrees in all workers and managers, and this mix of motivational needs characterises a person's or manager's style and behaviour, both in terms of being motivated, and in the management and motivation others.

The need for achievement (n-ach)

o  The n-ach person is 'achievement motivated' and therefore seeks achievement, attainment of realistic but challenging goals, and advancement in the job. There is a strong need for feedback as to achievement and progress, and a need for a sense of accomplishment.

  The need for authority and power (n-pow)

o  The n-pow person is 'authority motivated'. This driver produces a need to be influential, effective and to make an impact. There is a strong need to lead and for their ideas to prevail. There is also motivation and need towards increasing personal status and prestige.

The need for affiliation (n-affil)

o  The n-affil person is 'affiliation motivated', and has a need for friendly relationships and is motivated towards interaction with other people. The affiliation driver produces motivation and need to be liked and held in popular regard. These people are team players.

Adam’s Equity Theory

Adams called personal efforts and rewards and other similar

'give and take' issues at work respectively 'inputs' and 'outputs' ,

Inputs are logically what we give or put into our work.

Outputs are everything we take out in return.

These terms help emphasise that what people put in their work

 includes many factors besides working hours,

 and that what people receive from their work includes many

 things aside from money.

Porter & lawler model

o  This is a Process motivation model, meaning that it is primarily aimed at explaining what gives behavior consistency over time—what is necessary, for example, to keep motivation at a continuing high level.  While the model includes rewards (as it must), note that it does not tell us what combination (or type) of reward is more or less powerful.

Vroom’s Expectancy Theory

o  Expectancy

o  Instrumentality

o  Valance

o  Force

Goal setting Theory

o  Telling someone to "Try hard" or "Do your best" is less effective than "Try to get more than 80% correct" or "Concentrate on beating your best time." Likewise, having a goal that's too easy is not a motivating force. Hard goals are more motivating than easy goals, because it's much more of an accomplishment to achieve something that you have to work for.

Five Principles of Goal Setting

o  To motivate, goals must take into consideration the degree to which each of the following exists:

o  Clarity.

o  Challenge.

o  Commitment.

o  Feedback.

o  Task complexity.

Learning

Learning

oIt is the process by which skills, knowledge, attitudes & behaviour are formed &developed as a result of education, training, socialisation & experience.

Definition

oStephen.P.Robbins: “Learning is any relatively permanent  change in behaviour that occurs as a result o experience”.

oSteers & Porter: “ Learning can be defined as relatively permanent change in behaviour potentiality that results from reinforced practice or experience”.

Theories

 

oClassical conditioning

oOperant Learning

oCognitive Theory

oSocial Learning Theory

Behaviour Modification

oLuthans & Kreitner (1985), “ the systematic reinforcement or strengthening of desirable behaviour of employees , & the non-reinforcement or punishment of unwanted behaviour exhibited by organisational members”.

OB Mod steps

oThe identification of the critical behaviour patterns of employees that lead to good job performance.

oThe recording of the baseline frequency of those particular behaviour patterns that are currently exhibited.

oA functional analysis of the desired behaviour is then made. ie, the antecedents & consequences of the behaviour are analysed.

oAn intervention strategy is then developed to increase the frequency of occurrence of the desired behaviour & decrease that of the undesired ones.

oEvidence of results of the reinforcement strategies is examined to see if the strategy worked, & if some further fine tuning is needed.

 

PERCEPTION

DEFINITIONS

• Stephen P Robbins:” Perception is a process by which individuals organize & interpret their sensory impressions in order to give meaning to their environment”
• Fred Luthans : “perception is an important mediating cognitive process through which persons make interpretations of the stimulus or situation they are faced with”.

External Factors: 

These factors include characteristic of perceived object. These are:-

1. Intensity : High intensity increases the chances of selection.
2. Size     : The bigger the size of perceived stimulus, higher the probability that it is perceived.
3. Frequency: A repeated external stimulus is more attention getting than  a single one.
4. Contrast: The external stimuli stands out against background will receive more attention.
5. Status: Status held by an individual influences the perception about things.
6. Movement: People pay more attention to a moving object than the stationary ones.

• Internal Factors: These factors reside in person concern:-

1. Needs &Desires: Perception varies depending upon his needs & desires.
2. Personality: Optimistic people perceive things in favourable terms while pessimistic people perceive in negative terms.
3. Experience: Experience & knowledge serve as a basis for perception.

Symbolic Factors: These factors in a complex perceptual organisation involve intellectual as well as motivational factors.

Perceptual Organisation                               

·         Figure & ground: Stimuli that contrast with their environment are more likely to be noticed.

·         Our perception is affected by what we assign as figure & what we assign as background.

Similarity & grouping

Stimuli which have common physical similarities are more likely to be grouped together .

Continuation

Occurs when the eye is compelled to move through one object & continue to another object.

Proximity

Occurs when elements are placed close together.

Closure

• Occurs when an object is incomplete or a space is not completely closed.

Social Perception

• Is the process by which individuals attribute characteristics / traits to other people.
• problems 

1.    Halo Effect
2.    Stereotyping

Factors influencing social perception

• Characteristics of the person perceived

1. Appearance
2. Communication
3. Status

• Characteristics of the situation

1. Organization structure
2. Organizational culture

• Characteristics of the perceiver.

1. Cognitive complexity
2. Motivational state
3. Self concept
4. Previous experience

Impression Management

• The process by which people attempt to manage / control the perceptions others form of them
•    Facets of Impression Management

1. Impression motivation
2. Impression construction

Impression Management strategies

• Demotion prevention strategy

1.      Excuses
2.      Apologies
3.     Disassociation

       Promotion –Enhancing strategy

1.   Entitlements
2.   Enhancement
3.   Association

        

ORGANIZATIONAL BEHAVIOR

Definition

Luthans – “OB is directly concerned with the understanding, prediction, & control of human behaviour in organisations”.

Robbins – “OB is a field of study that investigates the impact

that individuals, groups & structure have on behaviour within

organisations, for the purpose of applying such knowledge

toward improving an organisation’s effectiveness”.

Key elements of OB

•People

•Structure

•Technology

•environment

Levels of analysis

•Individual Level

•Group Level

•Organizational Level

Contributing disciplines to OB

•Psychology

•Sociology

•Social psychology

•Anthropology

•Political science

Evolution of OB

•Industrial Revolution

•Scientific Management

•Human Relations Movement

•Hawthorne Studies

•Organisational Behaviour.

Challenges for OB

•Responding to globalisation: the world has

become a global village. In this process, managers job is changing.

•Increased foreign assignments

•Working with people from different cultures

•Overseeing movement of jobs to countries with low cost labour

•Managing people during the war on terror.

•Frequent job hopping by employees

•The average employee always seeks courses & programmes which will lead to self development opportunities.

•The average age of employee is growing younger.

•Organisation have realised the need of downsizing & are offering VRS.

•The advent of MNCs have made Indian companies to wake up to adopt cutting edge strategies to meet & beat their foreign counterparts.

•Managing workforce diversity

•The concept that organizations are becoming more heterogeneous in terms of gender, age, race, ethnicity, sexual orientation & inclusion of other diverse group.

•Embracing diversity

•Changing demographics

•Implications : managers have to shift their philosophy from treating everyone alike to recognising  differences & responding to ensure employee retention & greater productivity.

OB Models

•Autocratic model

•Custodial model

•Supportive model

•Collegial model

Theoretical perspective of human behaviour

•Cognitive framework : is the act of knowing an item of information. Edward Tolman’s work helps to understand the cognitive approach.

•Behaviouristic framework : this is the outcome of the pioneering efforts of Ivan Pavlov & John B Watson. They stressed the  importance of dealing with observable behaviours. They used classical conditioning experiments to formulate (S-R) explanations of human behaviour.

Modern behaviourism marks its beginning with the work of B.F.Skinner. His operant conditioning is based on the notion that behaviour is a function of its consequences, which may be either +ve / -ve.

Frame work

•Social learning framework: People are self aware & engage in purposeful behaviour. Learning through observation & direct experience has been called Social learning theory. Albert Bandura is the most representative of this approach.

Psychoanalytical framework    

•Is a type of personality. This argued that human behaviour is influenced more by unforeseen forces than conscious & rational thoughts. Sigmund Fraud developed this theory. He concluded that behaviour is mainly influenced by unconscious framework- id, ego & super ego.

•Id – is the source of psychic energy

•Ego – is conscious part of human personality.

•Super ego – represents system of values, norms & ethic that guide a person to behave properly in the society.

Methods of collecting behavioural data                    

•Observational methods

•Surveys

•Experiments

•Case studies

•interviews