Instead of producing products with the highest profit margins, operations managers should focus on the ________ generated at the ________
Fill in the blanks with correct word
profit (margin), bottleneck
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Herb Kelleher of Southwest Airlines frequently takes Southwest flights to check out operations and informally interview passengers to find out how satisfied they are with their service
Herb's attention to customer service and emphasis of it over profits permeates the organization. Southwest's corporate culture is influenced strongly by: A) Reward systems. B) Rules and procedures. C) Key organizational members. D) Environment.
Refer to Additional Case 11.2. Which of the following would most likely meet the demands of managers, the HR Director, and the VP of Operations?
Additional Case 11.2 Richland Manufacturing uses an individual-based pay-for-performance plan for employees. Manager input in the form of performance evaluations primarily determines individual employee rewards. Performance appraisals at Richland are used for multiple purposes including compensation, training, and work planning. Since implementing the plan, many managers have noticed that employees tend to play it safe by setting modest rather than challenging goals for themselves. Employees have also been avoiding important tasks, such as satisfying the needs of customers and keeping work areas neat. In addition, most employees express disbelief that pay and performance are actually linked. As a result, Richland is considering making modifications to the system. The HR Director wants a system that will reward all employees based on the entire company's performance because he wants to increase employee commitment. The VP of Operations wants to reward specific productivity and quality improvements with a simply structured system that considers labor costs as well as other production expenses. The VP of Operations also believes that labor and management should work together to allocate the rewards. A) A profit sharing plan B) A multiple-layers-of-rewards system C) A plantwide plan D) A team-based pay-for-performance plan