...SECTION 5 CHAPTER 4: ORGANIZATIONAL AND MANGERIAL ISSUES IN LOGISTICS 1. Discuss several issues that influence the organization of logistics activities within a firm. The organization of logistics activities within a firm depends on a number of factors, including the number and location of customers, as well as an organization’s size. The number and location of customers might influence whether a firm adopts a centralized or decentralized logistics organization. An organization’s size might influence the organizing of logistics activities in the sense that there are limitations in the degree of specialization of managerial talent in small firms. 2. Compare and contrast the fragmented and unified logistical organizational structures. In a fragmented logistics structure, logistics activities are managed in multiple departments throughout an organization. In such a structure, it is possible for the various logistics activities to be managed in two, three, four, or more departments. Because effective and efficient logistics is predicated on a high degree of coordination among logistics activities, such coordination can become difficult when the logistics activities are spread throughout an organization. In a unified logistics structure, multiple logistics activities are combined into, and managed as, a single department. The unified structure can be further classified based on the number and type of activities assigned to the department....
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...of how the multinational corporations are managed, especially the differences between organizational structures of Ford and Honda will be discussed. The background of a multinational corporation is an organization doing business in more than one country. In other words it is an organization or enterprise carrying on business in not only the country where it is registered but also in several other countries. It may also be termed as an international corporation, global giant and worldwide corporation (Shyam Soni, 2012). Ford is one of the earliest international companies in the world. They organize their company with a really wise way – decentralized decision-making. It is generally seen that there are more and more plus points of decentralization for decision-making. It is said by Kuldeep (2012) that decentralized decision-making helps to reduce burden of top executives and they can concentrate to another important tasks of policy-making, coordination and control. He also states that prompt and more accurate decisions can be made near the point of action without consulting higher levels and without waiting for approval of top executives. In the other side, Ford, individual companies have the right to make autonomic decision depends on the regional executive’s view of local demands. Each area has different demand and taste. Thus, this organizational structure can work smoothly to help the corporation understand more the consumers and satisfy their needs easily. Honda – a Japanese...
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...Centralization versus decentralization Every organization must establish whether its decision-making policies are centralized or decentralized. Highly centralized companies tend to have more bureaucratic traits, while highly decentralized companies tend to appear more out of control. Both extremes appear engulfed with inefficiencies and waste. High performance work systems seem to have more decentralized decision-making features, yet their culture, formed around their philosophy and values, is highly centralized. Creating a centralized philosophy and value system allows employees to become more empowered to make their own decisions, leading to decentralization. Centralization versus decentralization is an issue of control. Top executives make many decisions in a centralized organization and convey the decisions to managers at lower levels, creating a top-down management style. All divisions and locations are expected to adhere to policies and procedures approved by top-level managers. While this may seem like all employees are expected to conform to one way of thinking, stifling creative problem solving, centralization creates streamlined processes and allows the entire organization to utilize the same resources throughout the company. This can create process efficiency, but centralization typically does not allow employees to make and implement their own decisions without approval from levels higher up. Decentralization is characterized by relatively few layers...
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...Exercise 2: Centralization vs. Decentralization Identify whether your organization has a centralized or decentralized approach to procurement. My organization has a decentralized approach in which our stores play a big part in procurement. Even though purchasing makes all the decisions on product, the stores and the field operators make the final call. In comparison with other retail chains, decisions are mainly dealt at head office and the field would not have input on what is shipped to stores. Although my department (purchasing) has main control of the procurement process, we still need to advise our stores of what product has been ordered and shipped. When purchasing prepares for an upcoming event, we provide our stores the details of the feature products and recommend how much product they should order. However, stores have the ability to adjust their orders based on how much they can sell/lease. In terms of replenishment, we send an availability report to stores on a weekly basis that breaks down their inventory by idle/on order and identifies if store are over or below their optimal levels by category. This report is a good tool for our stores to recognize any gaps in their inventory and gives them the opportunity to move inventory within other stores and provides them a guideline on what they should replenish. Stores have the ability to order product through our internal ordering system by creating requisitions. The system will automatically approve orders...
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...and Solwezi though the survey was conducted in two of the target districts (Sesheke and Solwezi). Our staffer ALVIN CHIINGA looks at the survey which focused on identifying actual activities, progress and challenges of decentralisation. ONE of the main aims of the survey was to capture the public’s knowledge, attitudes, practices and perceptions about local governance and decentralisation. This survey took place between February 6 and February 15, 2011. Among some of the observations of the survey were that decentralisation is not reflected as a priority in most instances. It is also not reflected in the current council plans of action. In fact, the research was informed that councils had been waiting for instructions, directives and resources to begin undertaking activities that have been stated in documents such as the Decentralisation Implementation Plan (DIP). According to SACCORD, beyond the structural issue, the survey was able to establish considerable levels of uncertainty among local bureaucratic and political elites on the issue of decentralisation. This was evident in the degree of divergence of perspectives on the subject matter concerning decentralisation among the local leadership elite signifying lack of cohesion on this matter. There are several reasons that could be advanced in relation to this observation. SACCORD programme officer (Accountability and Good Governance Programme), Michelo Mwango said that the most possible three factors include poor communication...
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...------------------------------------------------- Key Issues 1) Implementing an innovative growth strategy that can achieve expected growth, while maintaining a value based employee model. 2) Cervus’ future approach in the execution of a diversification growth strategy, in the construction and industrial equipment markets. 3) Evaluating growth potential in international markets and the vehicles present. 4) Responding to IT environmental complexities alongside available partnerships which to work with. 5) Growing products and service capabilities to clients and optimize operational requirements. ------------------------------------------------- Analysis Internal Analysis (VRINE) – Decentralization and ‘Principles over Policy’ The following VRINE analysis will determine whether Cervus’ decentralization capabilities, namely the ‘principles over policy’ approach, provide a sustainable competitive advantage. Value Empowering dealership employees to formulate and implement growth strategies have provided a substantial amount of value for Cervus. Decentralized, value-based decision making gives front-level employees the power necessary to make critical customer service decisions without referring to corporate policy or waiting for a manager’s assistance. In addition, this discovered process approach has created an autonomous workforce, able to adapt quickly to new situations. Conversely, centralized decision-making can create ‘cold-hearted’ employees who are forced to resort to and...
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...Decentralization, deconcentration and devolution: what do they mean?1 Compiled by Elizabeth Linda Yuliani2 Decentralization with its various types has been implemented in many countries, and the terms have been widely used. However, the same word is often used to describe different things. Interpretations vary, and have led to different conceptual frameworks, programs, implementation and implications. Such differences have invited debates and discussion. This document lists definitions of decentralization, deconcentration, devolution and other related terms used in papers presented at the Interlaken Workshop on Decentralization, 27-30 April 2004, Interlaken, Switzerland. As this is a work in progress, there may be many parts needing improvement/changes. We look forward to receiving your comments and suggestions (L.yuliani@cgiar.org). Decentralization Definitions and descriptions of decentralization used in the papers include: • “Decentralisation is usually referred to as the transfer of powers from central government to lower levels in a political-administrative and territorial hierarchy (Crook and Manor 1998, Agrawal and Ribot 1999). This official power transfer can take two main forms. Administrative decentralisation, also known as deconcentration, refers to a transfer to lower-level central government authorities, or to other local authorities who are upwardly accountable to the central government (Ribot 2002). In contrast, political, or democratic, decentralisation refers...
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... Introduction Mayne was one of the biggest and most dominating companies concerning health care in Australia. It had an unbalanced history with ups and downs. It specialized in different areas. They started as a delivery company, which grew into an important logistics company. Later Mayne entered different industries including the health care section. Their goal was to be the market leader in the medical industry by owning hospitals, providing drugs and services. But due to poorly evaluated situations the company encountered several management and profitability issues. Depending on which period we look at the company, it has its strengths and weaknesses. Directly after entering the health care section, they had very specialized workers, this was their strong point since they needed professionals with an experienced view on the job they had to do. The down side was that they did not have a lot of authority. They were forced to listen to the decision makers who were a small centralized group of managers. Later on they even fired the specialized doctors and nurses and hired new inexperienced staff to do the job in order to keep the costs low. This of course was criticized and seen as a weak point in the history of the company. The environment in the 20th century changed rapidly, Mayne did not have the ability to respond to those quick transformations because of the limited focused management. All this is presented in the case and is important information in order to...
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...The Marketing of Accounting Standards The article “The Marketing of Accounting Standards” by Charles T. Horngren speaks of the decentralization of the Accounting Principles Board. He describes the institutional structure of the APB, speaks of the decentralization management, and the problems facing FASB. The institutional structure of the APB is decentralized, as previously mentioned, which leads to an “informal” organizational relationship. Horngren believes the APB folded because of institutional forces rather than internal disintegration (Horngran 61). He states that in politics Congress has the ultimate power, but delegates some of it to the SEC. In turn, the SEC delegates much of this power to the APB. He speaks of the SEC as a “top management” where they adopt decentralization because lower management, the APB, is believed to have more information and ability to make decisions. With this statement though, Horngren received criticism from an SEC member stating they have a “partnership,” (Horngren 62). Horngren believes that, “the need to study how the exercise of power affects the acceptability of accounting standards,” (Horngren 63). Working as a decentralized management has proven to be difficult as well. The issue with marketable securities is one example. Three issues have occurred: recognition of portfolio gains and losses, do the portfolio gains and losses belong in the income statement, and if market values are disclosed in the balance sheet than there’s...
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...In our DNS case, each of those offices may keep up and control its own particular DNS server, being in charge of keeping up the ability set to keep focused of the innovation as it changes, to modeler the frameworks as it sees fit, and to screen the administration. Organizations can structure IT in a centralized or decentralized way. Centralization is an attempt to enhance proficiency by taking advantages of potential economies like enhancing the average; it might also reduce the occurrences of any mistakes. Decentralization is an attempt to enhance speed and adaptability by redesigning to build neighborhood control and execution of an administration. Decentralization implies splitting against the disappointing bureaucratic methods of old and giving access to everyone. For example, it implies somebody has turned out to be so disappointed with an incorporated administration that "do it yourself" has the capability of being better. In the current environment decentralization is regularly an intentional reaction to the quicker pace of business what's more, to client desires of expanded independence. In centralization different groups are pulled together to enforce order of the process and cooperation between them. It is a leveling process. It looks for to evacuate the misuse of cash on copy or duplicate systems, additional work and manual procedures. New innovation ideal models frequently bring opportunities for...
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...A decentralized organization is one in which decision making is not confined to a few top executives but rather is throughout the organization, with managers at various levels making key operating decisions relating to their sphere of responsibility. Decentralization is a matter of degree, since all organizations are decentralized to some extent out of necessity. At one extreme, a strongly decentralized organization is one in which even the lowest-level managers and employees are empowered to make decisions. At the other extreme, in a strongly decentralized organization, lower-level managers have little freedom to make decisions. Although most organizations fall somewhere between these two extremes, there is a pronounced trend toward more and more decentralization. Advantages/Benefits of Decentralization: Decentralization has many advantages/benefits, including: 1. Top management is relieved of much day-to-day problem solving and is left free to concentrate on strategy, on higher level decision making, and coordinating activities. 2. Decentralization provides lower level managers with vital experience in making decisions. Without such experience, they would be ill-prepared to make decisions when they are promoted into higher level positions. 3. Added responsibility and decision making authority often result in increased job satisfaction. Responsibility and the authority, that goes with it makes the job more interesting and provides greater Incentives for people to put out...
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...Nucor at Cross Roads - Swot Hbr Case Week 3: Nucor at Crossroads Strengths * Strong leadership & progressive company culture => decentralized management philosophy, egalitarian benefits, performance based compensation, strong emphasis on customer service and quality, and technological leadership through consistent investment in R&D and modernization of plant & machinery * Strong financials => consistent growth in sales and profits during the last 3 years (1983 to 1985) with the most recent year (1986) resulting in a sales figure of $755Mn (down $3Mn from last year) and net earnings of $46Mn. * Flat structure => leading to improved communication (formal & informal) between corporate and factory and amongst factories (interplant) => leading to improved efficiencies / productivity * High employee morale, low staff turnover compared to industry average => a culture that promotes Is this essay helpful? Join OPPapers to read more and access more than 650,000 just like it! get better grades team work, high levels of commitment and hard work => compensation schemes designed to reinforce the relationship between pay and performance and to reward production groups rather than individual performance. Also attractive incentive and reward schemes for employees (eg. bonuses, stock options, health coverage, college education for children of employees). * Nucor’s geographic spread (by 1986 Nucor had 16 plants in 10 locations...
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...Centralized Verses Decentralized: A Tale of Two Structures Leroy Dowdy Walden University Dr. Gayle Grant 08 April 2012 Centralized Verses Decentralized: A Tale of Two Structures The history of information technology (IT) has been well documented over the previous decades. The contributions of IT vary, but perhaps the most notable is the influence on organizational structuring. Prior to the information age, organizations predominately operated within a centralized structure (Mukherji, 2002). In a centralized structure, decision-making resided at senior levels and was executed within a formal structure. Conversely, a decentralized structure distributes decision-making in an informal environment. The centralized structure was effective, in part, due to decision-making authorities being reserved for upper management (Hitt & Brynjolfsson, 1997). The two case studies presented excellent examples of how organizational structure influences the use of IT. The use of social action theory to frame the research was insightful. Social action theory suggests that organization’s structures are based on traditions, policies, and habits, but may change if any of these factors are changed, replaced, or not acted upon (Giddens, 1984). This author will examine the challenges faced and the strategic responses implemented by both universities. Challenges and Strategic Responses The maturation of IT made the handling, sorting, and storing of hard copy documents obsolete. The...
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...Nursing Mission and Philosophy Chrys Chacha Writer In organization and profession, organizational theories are necessary and their contribution to the social systems in such fields. They help in realizing the mission, vision values and determine the direction of an organization. To realize this, the organizational design and structure is necessary to ease the follow of work. Application of centralized or decentralized structures depends on which works best to achieve organizational goals. It is also necessary to access the benefits and risks associated with shared governance in the nursing field. Modern theories of organization shows adoption of several changes in the nursing field, they point out on the need for interactions between employees and other structures to realize the objectives of the organization. The theories stress on the need for integrating individuals interests with those of the organization to realize good results. These theories serve as social systems in organizational structure. They aim at improving interdependence, correlation amongst employees to help in process linkages. The structures developed under the modern organizational theories also aim at achieving the goals and objectives of an organization through addressing several management systems (Oliver, 2007). The modern theories use the socio-technical approach to make the organization effective. This approach aims at ensuring the employees in the nursing sector are equipped with the necessary...
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...Centralization In a centralized organization all of the commands come down from one head individual. Centralization is a popular business model in small organizations because the owner is in charge of all the companies operations. The owner's decisions are then passed down a chain of command. There are many benefits to centralizing an organization. The strict chain of command helps to keep the organization systematized. In turn the processes can help to reduce cost, improve coordination, the quality of work and communication. Like everything centralization also has its downfalls, which include the formation of a bureaucracy where all decisions need to be passed back up the chain of command causing the owner to burdened with decisions a lower level employee could handle them self. Due to the structure of a centralized organization it allows for the company to potentially cut cost in its operations. Since the managers delegate tasks and policy they have a strong knowledge about what is going on inside the company. They know the strengths and weaknesses of the business and how things should operate. In addition to this they also have strict control of the budget and their products. This knowledge helps them to make smart and safe decisions when it comes to taking on new projects, and not allowing unauthorized employees to make such decisions without their knowledge. Having the owner make the final decision on expenditures makes frivolous spending nearly nonexistent. Another...
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