MGMT2123 Lecture 9: Day 9-10
September 28th, 2017
● Figuring out the issues that need to be negotiated
● Case: Universal Computer pg. 26
○ Logan, Crawley and Phillips
○ Phillips department = poor quality… traced to quality of part received from
Crawley’s department
○ No one has authority over each other
○ I got phillips
○ First issue of what quality control you need?
■ Need high quality control (close to 100… 99.9)
■ Think macro, Act micro
■ Reason why many in US lost jobs as did not hit 99.9%
■ Need to keep the quality HIGH
○ Second issue: Who is going to pay for it?
■ Sharing was a WW way
○ Third issue: Who is going to DO it?
■ Crawley has conflict of interest, as his is cost based…
■ If he says yes and does nothing gets his bonus and passes it along to
Phillips and Logan
■ Could have some people watching what Crawley does… Inspection is
essential, need to have confirmation that they are holding up their part of
the deal
○ Compensation:
■ It can be an incentive, or if not good enough an obstacle
■ Quality is key to our success
■ If we reward lowing costs, you are creating incentives to only care about
costs
■ Could change bonus system to have quality control taken into account
■ In the past the US had this incentive system based on cost controls and
lead to downfall
○ Where is the power?
■ Phillips and Logan can go to CEO and have Crawley fired or department
axed
■ Crawley is weakest, source of problem
● Negotiating is a function of power, information, trust, skill
October 3rd, 2017
● Universal Case (Continued)
○ Negotiating is a function of power, information, trust, skill/technique)
○ Global standard for manufacturing in tech is 99.99%
○ Physical Output:
■ For Full time employees
■ Us vs. Competitor 1 vs. Competitor 2
● How does our number compare to these?
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
No one has authority over each other. Need high quality control (close to 100 99. 9) Reason why many in us lost jobs as did not hit 99. 9% Figuring out the issues that need to be negotiated. Phillips department = poor quality traced to quality of part received from. Crawley has conflict of interest, as his is cost based . If he says yes and does nothing gets his bonus and passes it along to. Could have some people watching what crawley does inspection is essential, need to have confirmation that they are holding up their part of the deal. It can be an incentive, or if not good enough an obstacle. If we reward lowing costs, you are creating incentives to only care about costs. Could change bonus system to have quality control taken into account. In the past the us had this incentive system based on cost controls and lead to downfall.