Price Differentiation


A common response during slow demand is to discount the price of the service. This strategy relies on basic economics of supply and demand. To be effective, however, a price differentiation strategy depends on solid understanding of customer price sensitivity and demand curves.

Heave use of price differentiation to smooth demand can be a risky strategy. Over –reliance on price can result in price wars in any industry where eventually all competitors suffer. Price wars are well known in the airline industry, where total industry profits suffered as a result of airlines simultaneously trying to attract customers through price discounting.

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.

Situation Appraisal


We may experience confusion and uncertainty over where to begin, how to recognize situations that require action, how to break apart overlapping and confusing issues into manageable components, how to set priorities, and how to manage a number of simultaneous activities efficiently.

Nearly every manager has entered the fantasy of starting fresh. Even on the first day in a new job, the manager is beset by issues that were chronic frustrations for the previous incumbent. Every manager must operate from a middle ground, surrounded by the accumulated problems of the past, a profusion of demands of the moment, and the certainty that future threats and opportunities await him not be ignored.

Situational analysis in this situation thus has a role. It consists of evaluative techniques that lead to proper selection and use of analytical techniques. This process builds the framework for daily use of rational process ideas. It enables managers to make best possible use of the technique of problem analysis, decision analysis, and potential problem analysis.

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.

Positive Discipline


Positive discipline attempts to integrate the disciplinary process with the performance management system. When problems arise, rather than promptly responding with a written verbal warning (punitive), positive discipline attempts to get the employee back on track by helping to convince the individual to abide by company performance standards. That is, in using positive discipline, attempts are made to reinforce the good work behaviors of the employee, while simultaneously emphasizing to the employee the problems created by the undesirable performance.

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.

Simultaneous Production and Consumption


Whereas most goods are produced first, then sold and consumed, most services are sold first and then produced and consumed simultaneously. A restaurant services cannot be provided until they have been sold, and the dining experience is essentially produced and consumed at the same time. Frequently this also means that the customer is present while the service is being produced and thus views and may even take part in the production process. This also means that frequently customers will interact with each other during the service production process and thus may affect each others’ experiences. For example, strangers seated next to each other in an airplane may well affect the nature of the service experience for each other. That passengers understand this fact is clearly apparent in the way business travelers will often go to great lengths to be sure they are not seated next to families with small children. Another outcome of simultaneous production and consumption is that service producers find themselves playing a role as part of the product itself and as an essential ingredient in the service experience for the consumer.

Because services often are produced and consumed at the same time, mass production is difficult if not possible. The quality of service and customer satisfaction will be highly dependent on what happens in “real time,” including actions of employees and the interactions between employees and customers. Similarly, it is not usually possible to gain significant economies of scale through centralization. Usually operations need to be relatively decentralized so that the service can be delivered to the consumer in convenient locations. Also because of simultaneous production and consumption, the customer is involved in and observes the production process and thus may affect (positively or negatively) the outcome of the service transaction.

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.

 

Resource Dependence Theory


This is the theory that argues that the goal of an organization is to minimize its dependence on other organizations for the supply of scarce resources in its environment and to find ways of influencing them to make resources available. Thus an organization must simultaneously manage two aspects of its resource dependence: 1) it has to exert influence over organizations so that it can obtain resources, and 2) it must respond to the needs and demands of other organizations in its environment.

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.

 

Great Managers: Ask yourself six Questions


Great Managers know that the core of a strong and vibrant workplace can be found in the six questions:

  1. Do I know what is expected of me at work?
  2. Do I have the materials and equipment I need to do my work right?
  3. At work, do I have the opportunity to do what I do best every day?
  4. In the last seven days, have I received recognition or praise for good work?
  5. Does my superior, or someone at work, seem to care about me as a person?
  6. Is there someone at work who encourages my development?

Securing 5’s to these questions is one of your most important responsibilities. And as many managers discover, getting all 5’s from your employees is far from easy. To secure 5’s to all of the questions you have to reconcile responsibilities that, at first sight, appear contradictory. You have to be able to set consistent expectations for all your people yet at the same time treat each person differently. You have to be able to make each person feel as though he is in a role that uses his talents, while simultaneously challenging him to grow. You have to care about each person, praise each person, and, if necessary, terminate a person you have cared about and praised.

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.

Japan’s Manufacturing Techniques


Nations are built not with bricks and stones but with the capacity to create and apply knowledge. The result of knowledge creation and application in manufacturing and management practices is well demonstrated by Japan. Today we are witness to many industrialized economies that are strengthening their manufacturing activities simply by adopting these techniques.

The distinguishing characteristics associated with Japanese manufacturing techniques include an emphasis on designing and redesigning processes to optimize efficiency and a strong commitment to quality.

The manufacturing techniques that Japanese companies practice provide a competitive advantage and outstanding economic performance. The key for success is an understanding of the broad context of manufacturing culture, infrastructure and environment. These sound manufacturing and business techniques created and adopted by leading Japanese manufacturers have turned out to be the secret of their market leadership in many industries.

Following are a few of these concepts, which can help in managing any business set-up in a better way:

  • Kaizen is one such technique, which in Japanese means ‘improve.’ This is commonly recognized as practices focusing on continuous improvement in manufacturing activities, business activities in general, and even life in general, depending on interpretation and usage. By improving standardized activities and processes, Kaizen helps in eliminating waste.
  • Another management Japanese technique is the 5-S. It is a technique used to establish and maintain quality environment in an organization. It has five elements: Seiri (sorting out useful and frequently used materials and tools from unwanted and rarely used things); Seiton (keeping things in the right place systematically so that searching or movement time is minimized); Seiso (keeping everything around you clean and in a neat manner); Seiketsu (standardizing the above principles in everyday life) and Shitsuke (inculcating good habits and practicing them continuously). The 5-S practice helps everyone in the organization to live a better life.
  • Kanban and ‘Just in Time’ are two other practices in inventory management practices that were pioneered by the Japanese automobile manufacturers, such as Toyota. Quality improvement, on the other hand, is the result of lower proportion of component scrap since the components spend less time in the supply chain.
  • Poka-yoke is a process improvement focused on training of workers for mastering the increasingly complicated tasks to selectively redesign the tasks so they could be more easily and reliably mastered. It involves designing a foolproof process to eliminate the chance of errors.
  • Jidoka is a practice by means of which an individual worker runs several machines simultaneously. Japan thus designs such machines that eliminate both error and the need for constant supervision.
  • Muda is another technique that reduces wasteful activity in service processes. It ensures process efficiency and effectiveness.
  • Mura curiously combines rigidity and flexibility and thus teaches service process improvement.
  • Reducing Muri means reducing physical strain. In services process improvement, Muri applies to convoluted and unnecessary routings, physical transfer, and distances paper files may have to travel for a process to complete.
  • Genchi Gembutsu means going to the actual scene (genchi) and confirming the actual scene (gembutsu). Observation of service processes at the point where it is actually delivered may unearth a host of problems such as lack of training, unnecessary steps, or a number of other areas that would benefit from small but significant process improvement ideas.

This is a glimpse of manufacturing techniques that Japan has so intellectually created and so profoundly practiced in its manufacturing systems that even with no natural resources, it has acquired the status of one of the most industrialized nations. Can we learn from Japan?

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, Lectures, Line of Sight.

Previous Older Entries