Toward a New Era in U.S. Manufacturing The Need for a National Vision (1986) / Chapter Skim
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3 People and Organization
3 People and Organization
Pages 49-60
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From page 49... ...
However, the demands placed on manufacturers to be effective in an increasingly competitive marketplace can be expected to push managers and workers in the directions described in this chapter. Much depends on the size and culture of the firm and the commitment of managers and workers.
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From page 50... ...
It is a system encompassing design, engineering, purchasing, quality control, marketing, and customer service as well as material transformation; the operations of subcontractors and the whims of customers are also important parts of the system. The systems approach is a key principle not only for manufacturing technology, but also for organizational structure, supplier relations, and human resource management.
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From page 51... ...
Job design and classification will be based on broad operational functions rather than narrowly defined activities. Functions such as product design, manufacturing, purchasing, marketing, accounting, and distribution will require close cooperation and tight coordination.
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From page 52... ...
PARTICIPATION AND OWNERSHIP A key step in the evolution of human resource management in manufacturing will be to broaden participation in the company's decision-making process. Employees at all levels should be given an opportunity to contribute ideas, make decisions, and implement them in areas that may affect operations beyond the individual's formal responsibilities.
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From page 53... ...
Information linkages are currently provided by several layers of middle management that serve primarily as an information conduit. With decision-making responsibility pushed to the lowest possible level, the extra layers of middle management are likely to be both unnecessary and unaffordable.
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From page 54... ...
Developing the required knowledge will require extensive training, by a variety of mechanisms and a significant amount of job rotation at every level of employment. As new technology is imple~nented, substantial training can be expected from equipment vendors, but the broader scope of job responsibilities is likely to require off-site classroom courses, company-wide seminars, and on-thejob training.
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From page 55... ...
Although various mechanisms will be used in pursuit of a stable work force, absolute job security is likely to remain both elusive and a source of contention. Some companies recently have been very successful in relocating unskilled and semiskilled workers to other plants and in retraining them to perform new and varied tasks in the automated factory.
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From page 56... ...
Mechanisms for improving factory effectiveness, such as precise inventory control systems, material requirements planning, in-house production of previously subcontracted work, production process planning, and the many aspects of factory automation, will change the operations of the future factory. The criteria that managers have traditionally used to make operational decisions will change, and, in many cases, the decisions will change.
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From page 57... ...
Quantifiable improvements in individual performance, such as increasing output per hour or shift, will not be applicable to automated, integrated production with emphasis on project teams. Objective indicators of performance will remain in areas such as quality, delivery, process system costs, customer satisfaction, and company earnings, but these will reflect more on group efforts or the total work force than on individuals.
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From page 58... ...
FUTURE FOCUS In the new manufacturing environment, efficiency alone will not ensure success. Foresight will be the ultimate competitive weapon, because market share ant} profit margins are likely to be small for the followers.
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From page 59... ...
Other companies will save research costs by using licensing agreements, but as product life cycles shorten, the value of licensing as a relatively inexpensive way to enter new markets can be expected to diminish. Companies will face difficult choices in striking a balance between spending for future and immediate competitiveness.
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From page 60... ...
NOTES 1 The findings from field work conducted for a Manufacturing Studies Board report on effective practices in implementing advanced manufacturing technologies have been consistent with these predictions. See Committee on the Effective Implementation of Advanced Manufacturing Technology, 1986, Human Resource Practices for Implementing Advanced Manufacturing Technology, Washington, D.C.: National Academy Press.
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