Transcript communication in organizations

COMMUNICATION AND
ORGANIZATIONS
INCREASING EFFICIENCY THROUGH
LATERAL COMMUNICATION: THE AUTO
INDUSTRY
Lecture 9c
AUTO INDUSTRY:
INCREASED EFFICIENCY
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LARGE NUMBERS OF CARS
RELATIVELY LOW COST
RELATIVELY LOW QUALITY
COMPANIES MADE HIGH PROFITS
AS LONG AS SIMPLE STABLE
ENVIRONMENT
- NO FOREIGN COMPETITION
AUTO INDUSTRY:
INCREASED EFFICIENCY
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Video Example: Industry History
AUTO INDUSTRY:
A REMINDER
High Emphasis on Vertical Coordination
• Authority
• Formal authority to shape and direct the
behavior of those at lower levels
• Rules, Policies & Standards
• (Tell People What to Do and Who to Talk to)
• Limit discretion and helps ensure predictability
and uniformity
• Planning & Control Systems
• (Standardization of Outputs)
• Performance Controsl – Specify outcome
objectives. Measures and motivates.
• Action Planning – Defines methods and time
frame for decisions and actions.
AUTO INDUSTRY:
INCREASED EFFICIENCY
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Video Example: Industry History
AUTO INDUSTRY:
DECREASED EFFICIENCY
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INTER-DEPARTMENTAL WARFARE
LAST MINUTE CHANGES
- LOW LAUNCH QUALITY
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CONCEPT-TO-CAR TIME LINE GROWS
ADMINISTRATIVE COSTS RISE
COMPETITION PRODUCES HIGHER QUALITY
AT LOWER COSTS, MUCH QUICKER
AUTO INDUSTRY:
INCREASED EFFICIENCY
•
Video Example: Industry History
AUTO INDUSTRY:
INCREASE EFFICIENCY AGAIN
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THROUGH INTERDEPARTMENTAL TASK
FORCES
- EVENTUALLY TEAMS IN THE OPERATING CORE
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TO RECONNECT UNITS WITH EACH OTHER
AND PEOPLE WITH THE WORK