MGMT2123 Lecture 9: Day 9-10

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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?
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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.

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