Contractual Relationship


A contractual relationship exists when employers and employees have a legal agreement regarding how employee issues are handled. Under such contractual arrangements, discharge may occur only if it is based on just cause. Inasmuch as a distinct definition of just cause does not exist, they are guidelines derived from labor arbitration of collective bargaining relationships under which just cause can be shown as follows:

  • Was there adequate warning of consequences of the worker’s behavior?
  • Are the rules reasonable and related to safe and efficient operations of the business?
  • Before discipline was rendered, did a fair investigation of the violation occur?
  • Did the investigation yield definite proof of worker activity and wrong doing?
  • Have similar occurrences, both prior and subsequent to this event, been handled in the same way and without discrimination?
  • Was the penalty in line with the seriousness of the offense and in reason with the worker’s past employment record?

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Shedding Light on Quality Awareness


An organization will not begin the transformation until it is aware that the quality of the product or service must be improved. Awareness comes about when an organization loses market share or realizes that quality and productivity go hand in hand. It also occurs if TQM is mandated by the customer or if management realizes that TQM is a better way to run business and compete in domestic and world markets.

Automation or other productivity enhancements might not help a corporation if it is unable to market its product or service because the quality is poor. The Japanese learned this fact from practical experience. They could sell their products only at ridiculously low prices, and even then it was difficult to secure repeat sales. Until recently, corporations have not recognized the importance of quality. However, a new attitude has emerged—quality first among the equals of cost and service—the customer wants value.

Quality and productivity are not mutually exclusive. Improvements in quality can lead directly to increased productivity and other benefits. The improved quality results in improvement in productivity, capacity, and profit. Many quality improvement projects are achieved with the same workforce, same overhead, and no investment in new equipment.

More and more corporations are recognizing the importance and necessity of quality improvement if they are to survive domestic and world-wide competition. Quality improvement is not limited to the conformance of the product or service to specifications; it also involves the inherent quality in the design of the system. The prevention of the product, service, and process problems is a more desirable objective than taking corrective action after the product is manufactured or a service rendered.

TQM does not occur overnight; there are no quick remedies. It takes a long time to build the appropriate emphasis and techniques into the culture. Over-emphasis on short term results and profits must be set aside so long-term planning and constancy of purpose will prevail.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Planning for Uncertainty


Uncertainty has become so great as to render futile, if not counterproductive, the kind of planning most companies still practice: forecasting based on probabilities.

Unique events have no probability. Yet executives have to make decisions that commit to the future current resources of time and money. Worse, they have to make decisions not to commit resources—to forgo the future. The lengths of such commitments are steadily growing: in strategy and technology, marketing, manufacturing, employee development, in the time it takes to bring a new plant on steam or in the years until a commitment to a store location pays for itself. Every such commitment is based on assumptions about the future. To arrive at them, traditional planning asks, “what is most likely to happen?” Planning for uncertainty asks instead, “What has already happened that will create the future?”

The first place to look is in demographics. There have been two revolutionary changes in the workforce of developed countries: the explosion of advanced education and the rush of women into careers outside the home. Both are accomplished facts. The shift from blue-collar labor to knowledge and service workers as the centers of population gravity is irrevocable. But so is the aging of both the workforce and population.

Business people need to ask: “What do these accomplished facts mean for our business? What opportunities do they create? What threats? What changes do they demand in the ways the business is organized and run, in our goals, in our products, in our services, in our policies? And what changes do they make possible and likely to be advantageous?”

The next question is: “What changes in industry and market structure, in basic values (e.g., the emphasis on the environment), and in science and technology have already occurred but have yet to have full impact?” It is commonly believed that innovations create changes—but very few do. Successful innovations exploit changes that have already happened. They exploit the time lag—in science, often twenty-five or thirty years—between the change itself and its perception and acceptance. During that time the exploiter of the change rarely faces much, if any, competition. The other people in the industry still operate on the basis of yesterday’s reality. And once such a change has happened, it usually survives even extreme turbulence.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Reduced Incentive to Invest


The fear of the loss of revenues can reduce a firm’s incentive to invest in a drastic (radical in the economic sense) innovation. If a firm holds a near monopoly position in a market, and knows that by investing in a drastic innovation it will accelerate the introduction time of the innovation, it may not want to invest, all else being equal. The incentive changes if the firm knows that by not investing in the innovation, someone else would. For example, Intel’s Pentium was a drastic innovation since it rendered the 486, for the most part, noncompetitive. If Intel had not introduced the Pentium, there is a good chance that its competitors would have introduced a comparable product.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Innovation Defined


Innovation is the use of new knowledge to offer a new product or service that customers want. It is invention together with commercialization. It is a new way of doing things (termed invention by some) that is commercialized. The process of innovation cannot be separated from a firm’s strategic and competitive context. The new knowledge can be technological or market related. Technological knowledge is knowledge of components, linkages between components, methods, processes, and techniques that go into a product or service. Market knowledge is knowledge of distribution channels, product applications, and customer expectations, preferences, needs, and wants. The product or service is new in that its cost is lower, its attributes are improved, it now has new attributes, it never had before, or it never existed in that market before. Often the new product or service itself is called an innovation, reflecting the fact that it is the creation of new technological or market knowledge.

Innovation has also been defined as the adoption of ideas that are new to the organization. Generating good ideas or adopting a new one, in and of itself, is only a start. To be an innovation, an idea must be converted into a product or service that customers want. Coming up with the idea or prototype—invention—is one thing. Championing it, shepherding it, and nurturing it into a product or service that customers want is another. Innovation entails both invention and commercialization.

A distinction has also been made between technical and administrative innovation. Technical innovation is about improved products, services, or processes or completely new ones. This contrasts with administrative innovation, which pertains to organizational structure and administrative processes and may or may not affect technical innovation. Technical innovation may or may not require administrative innovation. A technical innovation can be a product or a process.

Product innovations are new products or services introduced to meet an external and market need whereas process innovations are new elements introduced into an organization’s production or service operations—input materials, task specifications, work and information flow mechanisms, and equipment used to produce a product or render a service.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight