(Must be 250 words or more. Everything must be in own words).
Discuss the industry in which your organization operates. Include significant recent trends in
the industry or environmental factors that have affected your organization (such as higher fuel
prices for a trucking firm). Potential factors include government regulation, new competitors,
substitute products or new technologies.
Systems
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Unit Three
Interdependence
Interdependence
To varying degrees, the performance of each
segment affects and is affected by the
W of all others. The overall health
performance
of the Iorganization depends on the
performance
of its components.
L
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As subprocesses are analyzed, it is possible to lose the key component: the interdeS
pendence of the subprocesses. All of the subprocesses must function together. This
,
requires an understanding of the holistic nature
of the organization and the environment that surrounds it. As stated earlier, the performance of one element of the organization affects the performance of all of the others.
The failure of a single family memK
ber to perform his or her tasks affects all of the other family members. The failure of a
A
single employee in a complex, modern organization to perform assigned tasks will also
S
affect all of the other employees and the organization
as a whole.
S
This is universal whether the organization A
is the single family or the modern organization. The connections between the subfunctions and the external environment
N
must be considered.
Interdependence:
connectedness at a higher level
D
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In the example on page 2.8, the automobile 2door latch
1 an
company was used to demonstrate that within
organization, the performance of each segment
6 affects
and is affected by the performance of all others. The
1
example also highlighted that within an organization,
T appear
there are connections that do not necessarily
S level,
on the organizational chart. Moving to the next
the situation with that one small organization could
affect the next level in the organizational hierarchy. For
example, a delay in delivering door latches could produce a delay in the delivery of automobiles to dealers.
Industry Level
Interdependence =
Interconnectedness
@ a larger scale
GM Ford Chrysler
70
60
50
40
30
20
10
1960
1970
1980
Although each may be
independent, sales increase
or decrease in one company
may create varying impact on
all others within the industry
Figure 3.1
3.2
Systems ~n~ Practice Online - Unit Three: Interdependence
Unit Three
Interdependence
At the industry level, one major automobile manufacturer's actions affect
the other major automobile manufacturers. Decisions made by Henry
Clay Ford affect the chief executives
of the other two "Big Three" automakers. (Figure 3.1)
W
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LU.S. based companies and dominated the
I world automotive market. Today, one of
the "Big Three" is Daimler-Chrysler, the
Sresult of a merger between a U.S. company, and a German company. This illustrates
another level of connectedness: the global level. Before moving to that level, the
national economy should be noted.
K
GLOBAL
LEVEL
In order to understand the level of interconnectedness in the world today, we can
look at historical examples for contrast.
Prior to the middle of the Twentieth
Century, geographic separation defined
the limits of human connectedness.
Technological advances significantly
altered the transportation industry with
seemingly irreversible consequences.
It is generally accepted that one individual, Osama bin Laden, developed an
3.3
A
S
international organization which was able,
Swith a very small number of active particiApants, to interrupt the political, economic,
Nand social life of the United States and
Dthe world in general. The economic center
Rof the United States, New York City, literAally stopped. The repercussions of the
attack were felt
around the
2world. In com1parison, John
6Brown's raid
1on Harper's
TFerry, West
Virginia, had
Ssignificant
implications,
but the effect
was localized;
the initial
Systems ~n~ Practice Online - Unit Three: Interdependence
Unit Three
Interdependence
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impact did not extend beyond the immediate area.
Certainly, the instantaneous international repercussions
were almost non-existent and were significantly delayed
because of communications speed. Understanding the
interrelated nature
W of organizations, and its implications, provides the
I basis for movement from organizational analysis.
L
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In the new paradigm, in order to be effective, managers must focus on the relaK Taylor's model, managerial efforts are
tionships rather than the specific tasks. In
A way" to solve a particular problem. In
directed toward identification of the "one best
the new paradigm, there can be no "one best
Sway" because the interaction between the
various elements of the system and the external
S environment is dynamic. The "one best
way" today will probably not be so tomorrow. Managers are therefore confronted with an
A
environment of uncertainty in which the primary method of ensuring long-term survival
N
is to manage relationships and to develop a macro-view
D et al.,
of the organization and its environment (Kaplan
Some
2001).the external environment is dynamic. R
Environmental
A
The "one best way" today will probably not be so
tomorrow. Managers are therefore confronted with an
2
environment of uncertainty in which the primary
1
method of ensuring long-term survival is to manage
relationships and to develop a macro-view 6
of the
1
organization and its environment (Kaplan et al.,
2001).
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Influences that
Affect Businesses
Political
Social
Geographic
Economic
Religious
Made in the USA
When major corporations are involved,
the entire national economy is affected.
Products made in the United States are
not always "U.S. products." Take
Mercedes Benz, for example. The car
famous for German craftsmanship and
engineering skill is now an Americanmade product. Mercedes Benz opened
its first U.S. manufacturing facility
near Tuscaloosa, Alabama in 1997.
Mercedes Benz manufactures the MClass Sport Utility Vehicle at its Vance,
Alabama plant. A $600 million expansion initiated in 2000 doubled the size
and workforce at the plant after only
three years of operation.
The British Jaguar automobile is now
owned by the Ford Motor Company.
Honda celebrated 25 years of operations at its plant in Maryville, Ohio in
2004. The Marysville plant is one of
four production facilities in Ohio.
Honda also manufactures the Odyssey
Wminivan at a plant in Lincoln,
Alabama. Nissan is expanding its U.S.
I operations by constructing a plant in
L Canton, Mississippi, a $1.43 billion
L investment, to manufacture minivans
I and Altimas. The Canton facility joins
Nissan's Smyrna, Tennessee plant.
S And Toyota, manufacturer of the
, extremely popular Camry, produces
most of the Camrys sold in the United
K States at its Georgetown,
Kentucky plant.
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BMW, another German leader
Toyota
in the luxury auto market, man2
ufactures two of its models, the
BMW
Nissan
X5 and Z4, at its plant in
1
Spartanburg, South Carolina.
6
Honda
Like Mercedes, BMW expanded
1
its plant shortly after opening it
to add additional product lines. Nissan T
Mercedes Benz
S
Japanese auto manufacturers
have a long established presence in the United States.
3.5
Systems ~n~ Practice Online - Unit Three: Interdependence
Figure 3.2
Unit Three
Interdependence
Decisions for Discussion
W
In an attemptI to improve the efficiency of processing
unemployment claims, Indiana's state government conL
tracted with an Indian firm, Tata America International
L update its computers. Tata America's bid
Corporation, to
I less than the next lowest bid. Two
for the contract was $15.2 million, $8.1 million
other U.S. based companies bid on the contract,
S but no Indiana firm was large enough
to compete for it. Proponents of the deal pointed
out that outsourcing the work would
,
develop new workforces and increase consumer buying power in fast-growing markets
such as India, China, and Russia. As many as 65 jobs would be created in Indiana
K
and local subcontractors would be hired.
INDIANA
A
Governor Joe Kernan cancelled the contractSafter residents of Indiana, outraged at the
state's award of the contract to a foreign firm,
S protested. Kernan justified the cancellation of the contract by saying that the Department of Workforce Development had
A
structured the invitation to bid on the contract in such a way Indiana companies were
N
"virtually knocked out of the running." Opponents
charged that state officials had a
D
legal obligation to put Indiana residents first.
R
Department of Workforce Development officials
A argued that the contract would have
saved Indiana taxpayers millions and would not have cost any Indiana citizen a job.
The Indiana legislature responded by introducing legislation that contracts with state
2
agencies must include the provision that only U.S. citizens authorized to work in the
1
United States can be hired.
6
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Discussion Questions
1. Which side do you support?
T
2. Was the governor justified in cancelingSthe contract?
3. Who would have benefited from the contract?
4. Was Governor Kernan's decision in the best interest of Indiana's taxpayers?
3.6
Systems ~n~ Practice Online - Unit Three: Interdependence
Unit Three
Interdependence
Decisions for Discussion
What Can BrownW
Do for Toshiba?
I
Japanese electronics manufacturer
Toshiba and U.S. delivery service
L
provider UPS partnered to provide
Toshiba notebook computer cusL
tomers improved repair service. UPS employees at its Louisville,
I
Kentucky hub, trained by Toshiba, repair computers shipped by UPS
S
from UPS Stores. Toshiba notebook
owners in need of repair service
simply take the computer to one
, of thousands of UPS Stores and drop it
off. UPS packs the computer and ships it to Louisville. At the Louisville facility,
Toshiba certified UPS employees repair the computer and repack it for return directly
K
to the customer through the UPS delivery system, sometimes by the next day. UPS's
A of retail locations compliments its supexpertise in household delivery and its network
ply chain management proficiency in the delivery
of parts from Toshiba to the
S
Louisville hub for use in the repairs. UPS previously
operated similar arrangements
S
with InFocus, for digital projectors, and Lexmark International, for printers. Under
A
Toshiba's old system, repairs typically took eight to ten days. With the UPS partnerN reduced to four days.
ship, repair time, from drop off to return, was
D
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Discussion Questions:
1. How do consumers benefit from this arrangement?
2 this
2. How do Toshiba and UPS benefit from
1
arrangement?
6 process than
3. Do you think this is a more efficient
having consumers ship directly? 1
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Systems ~n~ Practice Online - Unit Three: Interdependence
Unit Three
Interdependence
T-Bills in Tokyo?
Most U.S. citizens know that the United States government, through the Department
of the Treasury, sells securities, primarily bills, bonds and notes, to finance governW
ment operations. Many people participate in programs where small amounts are
I
deducted from each paycheck or their bank account and invested in small denomiL
nation Treasury bonds. T-bills and other securities
provide a way to invest with an
L
almost zero risk of default.
I
Ownership of U.S. Treasury securities is not limited to individuals or to U.S. citizens.
S routinely purchase U.S. Treasury
In fact, did you know that foreign governments
, Treasury securities are owned by forsecurities? Approximately $1.3 trillion in U.S.
eign governments, primarily through their equivalents of the Federal Reserve Bank.
Japan ($720 billion) and Mainland China ($174
billion) are the largest holders of
K
U.S. Treasury securities. Why would foreign governments invest in Treasury securiA
ties? The primary reason is to protect the value of their own currencies in the internaS
tional currency markets.
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of
A
interdependence in different types of
organizations: a tire manufacturer,
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a college, and a hospital. Study
the examples and compare
them to your own
organization.
The Economy
Your Industry
Your
Organization
3.8
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Unit Three
Interdependence
Interdependence Structure Worksheet
Company Level
Manufacturing Example - Goodyear Tire Co.
Regulator
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Department of
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Governing
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Body
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Michelin
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Goodyear
Tire
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Company
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OSHA
Partner /
Competitor
Local University
PolyOne
Rubber
Supplier
General Tire
Partner /
Competitor
2
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Chamber of
S
Commerce
Community
Partner / Asset
Employer
HR Provider
3.9
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Unit Three
Interdependence
Interdependence Structure Worksheet
Industry Level
Manufacturing Example - Goodyear Tire Co.
Transportation
Industry
Partner
General Motors
Partner /
Purchaser
Rubber Industry
Partner /
Supplier
3.10
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Government
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Steel Industry
Partner /
Supplier
Toyota
Partner /
Purchaser
Information
Technology
Tax base
Systems ~n~ Practice Online - Unit Three: Interdependence
Financial
Support
Unit Three
Interdependence
Interdependence Structure Worksheet
Company Level
Service Example - A College
Commission
on Colleges
(SACS)
Governing
Body
University of
Tennessee
Partner /
Competitor
3.11
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State
Government
Companies
Partner / Asset
HR Provider
Systems ~n~ Practice Online - Unit Three: Interdependence
Department of
Education
Government
University of
Tennessee
Partner /
Competitor
Community
Unit Three
Interdependence
Interdependence Structure Worksheet
Industry Level
Service Example - Bethel College
Information
Technology
System Support
Private Sector
Financial
Support
Healthcare
Industry
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Industry
Commuters
Private Sector
Labor Supply
Information
Technology
Tax Base
Researchers
3.12
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Qualified Talent
Unit Three
Interdependence
Interdependence Structure Worksheet
Company Level
Service Example - Healthcare
State Medical
Board
Governing
Body
General
Hospital
Partner /
Competitor
3.13
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Companies
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Outpatient Clinic
Healthcare
Provider
Systems ~n~ Practice Online - Unit Three: Interdependence
Department
of Health
Government
General
Hospital
Partner /
Competitor
Community
Unit Three
Interdependence
Interdependence Structure Worksheet
Industry Level
Service Example - Healthcare
Information
Technology
System
Support
Education
Industry
Personnel
Education
Industry
Researchers
3.14
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Retirement
Age
Systems ~n~ Practice Online - Unit Three: Interdependence
Insurance
Industry
General
Population
Manufacturing
Industry
This is a copy of the online form you will fill out in
the COMPLETE section of this unit’s coursework.
Interdependence Structure Worksheet
Company Level
• Start by placing your organization in the center oval.
• Identify specific organizations that may affect the structure or performance of
yours, list the nature of the connections, and place them in the in the boxes as
you label them (suppliers, distributors, competitors, government agencies, etc.).
Place those that affect you in the blue boxes and those that you affect in the red
boxes.
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Systems ~n~ Practice Online - Unit Three: Interdependence
This is a copy of the online form you will fill out in
the COMPLETE section of this unit’s coursework.
Interdependence Structure Worksheet
Industry Level
• Start by placing your industry in the center oval.
• Identify general industries within the economy that may affect your industry and
list the nature of the relationships connecting them to yours. Place those affecting
you in the blue boxes and those that you affect in the red boxes.
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3.16
Systems ~n~ Practice Online - Unit Three: Interdependence
This is a copy of the online form you will fill out in
the COMPLETE section of this unit’s coursework.
Let’s Go Shopping!
Visit your local retail supercenter
to discover where your everyday
items are made.
At a local retail store (Walmart, Kmart, Target, etc.), log 15 items randomly. List the name of the product, W
its country of origin, and the price.
Item
(Example)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
T-shirt
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Made in:
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China
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15.
3.17
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8.99
Systems
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System & Structure
Unit Four
System & Structure
The organization’s mission statement is supported by its goals,
which are made up of objectives, that contain the processes.
Articulate the
Organizational
Mission Statement
#1
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#2
Identify Goals to
help fulfill your
Mission
}
Figure 4.1
4.2
Systems ~n~ Practice Online - Unit Four: System & Structure
Unit Four
System & Structure
As organizations evaluate the opportunities available, they must do so in the context
of the organization's mission. The organization's mission, or vision, is its reason for
existence. The mission defines the organization's goals -- the major achievements necessary for the accomplishment of the mission-as the goals define the objectives-steps
Wthe objectives is the outcome, or result,
required to achieve the goals. Achievement of
of the effective and efficient management of Ithe processes that occur within the organization. A work process is the sequence of steps
L that lead to the attainment of the organization's stated objectives. Each of these levels represent stages as we move through
L
the organization from the macro (mission/vision) to the micro (processes).
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}
#3
}
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Figure 4.2
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#4
4.3
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Devise Objectives
A
to help attain
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to accomplishTyour
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Objectives Figure
Systems ~n~ Practice Online - Unit Four: System & Structure
Unit Four
System & Structure
Figure 4.4- Illustrates how a college is
an example of System and Structure.
MISSION
STATEMENT
P
r
o
c
e
s
s
e
s
________
________
________
________
________
________
Figure 4.5
After a system
is created, then
a structure can
be devised to
support it.
Objective B
General
Education
P
r
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c
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s
s
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s
________
________
________
________
________
________
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P
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External
Operations
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Objective D
Objective B
Objective D
MBA
Program
________
________
________
________
________
________
P
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s
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s
________
________
________
________
________
________
Administration
New Territories
Recruiting
Marketing Public Relations
Advertising
4.4
Objective A
Objective C
Elective
Courses
Objective C
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GOAL
Comprehensive
,
Academic Offerings
Objective A
Management &
Organizational
Developement
Bachelor’s
Degree
GOAL 2
Well qualified
faculty & staff
To Create
Learning
Opportunities
Objective D
Objective C
Objective B
Objective A
GOAL 1
Geographic
Expansion
Internal
Operations
Academic
Affairs
Faculty Support
Accreditation
Cirriculum
Systems ~n~ Practice Online - Unit Four: System & Structure
Administration
Finance
This is a copy of the online form you will fill out in
the COMPLETE section of this unit’s coursework.
Macro System Analysis Form
Name________________________________________Date_______________
Mission/Vision
Statement:______________________________
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___________________________________________
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Top Organizational Goals
___________________________________________
I.
II.
III.
Goal I
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Objectives for Each Goal
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Goal II
A
1.___________________
1.___________________
_____________________
2
_____________________
1
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2.___________________
1
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3.___________________
3.___________________
3.___________________
_____________________
_____________________
_____________________
_____________________
_____________________
_____________________
_____________________
_____________________
2.___________________
_____________________
4.5
1.___________________
Goal III
Systems ~n~ Practice Online
_____________________
_____________________
2.___________________
_____________________
_____________________
Purchase answer to see full
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