CHAPTER 3 System Models LEARNING OBJECTIVES After studying this chapter, you should be able to understand Steven Alter's Nine Elements Work System Model © IPO Model © Systems Leading to Customer Delight © Structure and Performance of Work (HPWSs) 3.1 STEVEN ALTER’S NINE ELEMENTS WORK SYSTEM MODEL A work system is a system in which human participants and/or machines perform work using information, technology, and other resources to produce products and services for internal or external customers. Information systems, projects and supply chains are all spe s of work systems. > An information system is a work system in which all of processes and activities are devoted to processing information. >= A project is a work system designed to produce a product and then go out of existence. 3)28 _tnveprncustip and Management Concepts > A supply chain is an interorganizational work ane 1° Reeking materials and other inputs required to produce firm's products. : > The use of an e-commerce web site can be viewed as a work system ae a buyer 82s @ sellers web site to obtain product information and perform purchase transactions. The relationship between work systems in general and the special cases implies that the same basic concepts apply to all of the special cases, which also have their own . specialized vocabulary. In turn, this implies that much of the body of knowledge for the : current information systems discipline can be organized around a work system core, rather than around special cases, such as DSS or CRM. static view of a work system is represented by the work system framework. A dynamic lew of how a work system changes over time is represented by the work system life cycle model (Wi), A vi The work system framework (see diagram on next page) was originally developed to help business professionals Tecognize and understand I-reliant systems in organizations, It identifies nine elements that are Part of even a rudimentary understanding of a work system. Four of these eleme The work system life cycle model (Wszc) Systems change over time, The WSLC is an ite ing Programmed, In contrast, the system time through multiple iterations, This ined projects and incremental changes resulting from small adaptations and experimentation, The Wsic : . : treats unplanned changes as part of a work system's natural evolution,CHAPTER 3 : System Models 27 ys oe Diagram/Schematic of Theory Products and Services INFRASTRUCTURE The Work System Framework. (Adapted and slightly updated from Alter, 2006) Unanticipated adaptations Unantcipated opportunities OPERATION AND MAINTENANCE ee Recognition of Recognition of ‘Accepted for| | non-adoption Ready for infeasibility in operation of excessive development vision workarounds Ready for implementation oa vleresioton IMPLEMENTATION DEVELOPMENT ee Recognition of infeasibility in “ion, gous or esourema CJ Unanticipated opportunities Unanticipated adaptations The definitions of the nine elements of a work system are as follows : > Processes and activities include everything that happens within the work system. The term processes and activities is used instead of the term business process because many work systems do not contain highly structured business Processes involving a prescribed sequence of steps, each of which is triggered innit [ Entrepreneurship and Management Concapls - 7 Such processes are sometimes —— as a pre-defined manner. and content “depend on the skills, experience, and aoe nase eee rors” (iil et al,, 2006). In effect, business proce judgment of the ee ae perspectives for analyzing the activities Within Sec ore mabe parpertoas with their own valuable Concepts ang a aa neatietas aes aura communication, coordination, contro} terminology it and information processing. rk, Some may use computers ang Ir le who perform the worl z work system the more encompassing role of work system participant is more important than the more limited role of technology user (whether or not Particular participants happen to be technology users), © Technologies include tools (such as cell phones, Projectors, spreadsheet software, and automobiles) and techniques (such as management by objectives, optimization, and Temote tracking) that work system participants use while doing their work, “ Products and services are the combination of physical things, information and services that the work system produces, This may include physical Products, information products, Services, intangibles such as enjoyment and peace of mind, and social products such as arrangements, agreements and organizations. employees or contractors Working inside the Organization, ™ Environment includes the organizational, cultural, Competitive, technical and ae eh aia within which t © work system operates, These factors a vs = Performance even though the System does not rely on them Fe ae alt order to operate. The organization's general Norms of behaviour are Part of its culture, whereas More specific behavioural Norms and expectations about specific activities within the 5 wi : Processes and activities, ork system are considered part of its3.2 33 CHAPTER 3 : System Models. 29 ror ® Infrastructure includes human, informational, and technical resources that the work system relies on even though these resources exist and are managed outside of it and are shared with other work systems. For example, technical infrastructure includes computer networks, programming languages, and other technologies shared by other work systems and often hidden or invisible to work system participants. ™ Strategies include the strategies of the work system and of the department(s) and enterprise(s) within which the work system exists. Strategies at the department and enterprise level may help in explaining why the work system operates as it does and whether it is operating properly. IPO MODEL The input-process-output formulation is perhaps the best-known aspect of systems theory. It asserts that a system transforms inputs into outputs. In a shop where custom cabinets are made you can identify production inputs such as wood, hardware, stain, and other items that are discernible in the end product. Working in such a sh shop in includes activities such as sawing, planning, joinin drilling, squaring, gluing, staining, and sanding. The outputs are finish ; For reasons that will be made clear shortly, it is useful to depict a work system in a somewhat different manner. SYSTEM LEADING TO CUSTOMER DELIGHT No matter how great your company's product or service is, if your customer service skills are lacking, it won't make much difference. This is especially true in today’s economy, as struggling business owners need every possible advantage over their competition. Unfortunately, far too many business owners make the same mistakes over and over again, sending their customers into the arms of their competitors. Here are simple but effective ways for business owners to turn angry, frustrated, or dissatisfied customers into happy customers - who come back for more ! A. Staff Training It does not matter whether you have two or two hundred employees, you must train everyone in the art of customer service. Customers and clients will not tolerate rudeness, incorrect information, or apathy ou the part of your staff. Not taking the time to thoroughly train all employees - from the bottom to the top - is a major mistake made by too many small businesses._, 30 Entrepreneurship and Management Concepts Cy B. Avoid Argument with Customers It is worth-remembering that it takes five times more effort and cost to Gain ong Ney customer than it does to maintain one current customer. When it comes to Succe, as a business owner, it really is true that “the customer is alwoys right.” Tf you, tty tein an argument but lose a steady customer, you are punishing yourself and your busine with lost revenue - and, very likely, ensuring bad reviews on sites. ets C. Keep in Touch with Customers If you want to see repeat business, you need to be reachable by your customers, y - People find it difficult to contact the customer service department or speay manager, they may not return. Many businesses, especially online, try to maintain 3 distance from their customers, but this often backfires by sending people somewhere else where they'll get the one-on-one attention they are looking for. D. Be Flexible Treat every customer interaction as an opportunity to build a personal telationship - this is one of the ways small businesses can shine where a huge, faceless corporation can't. While the store clerk who is scared to lose his job can say “Sorry, that’s our policy,” customer service representatives and managers should be able to find ways to bend policies to build positive customer relationships. The phrase “If | do that for you, I'll hove do to it for everyone,” is one of the fastest ways to lose customers. E. Honour Commitments If you assure a customer that something will be ready by Thursday, then it should be teady by Thursday ~ no exceptions. If you can't honour your commitments to a customer for reasons beyond your control, do not make excuses ; the only words you need to remember are “We're sorry,” backed up by an extra effort to make the customer happy. F. Prompt Service Make sure your small business has an efficient system in place to deal with customers. When someone calls your company for help, they expect a service representative to be the first or second person to whom they speak. People do not like being passed from one person to another on the phone, or, if in-a retail location, sent from one department to another. Passing the buck is akin to passing the customer on to your competitor. G. Listen to Customer Customer service representatives often do not listen closely to customers - especially when the customer is upset about something. Therefore, they typically respond with an answer that does not match the problem. Customer relations representatives need to be trained, particularly in the art of listening and even taking notes,CHAPTER 3 : System Models, 31 —— 3.4 HIGH PERFORMANCE WORK SYSTEM One of the most visible trends in workforce management is the concept of high performance work systems (HPWSs). Though there is not a single definition, HPWS can be described as work systems that maximize the fit between the social (employees and structure) and technology systems. Fit or alignment between employees, technologies, and organizational strategy is seen as a key factor in the competitive advantage of an organization. High-performance work systems (HPWSs) are a group of separate but interconnected human resource (HR) practices - For example, selection, training, performance appraisal, and compensation - designed to enhance employee effectiveness. Employees should have better skills, more motivation, and more opportunities to excel when these high-performance HR practices are aligned and working in harmony. Although this definition of HPWS includes the abstract notion of alignment or fit, which are strategic management terms, both practicing professionals and researchers tend to focus on job/organizational design and human resource management practices as components of HPWS. The organizational/job design practices often include elements of networking, decentralized decision-making, and teamwork. The human resource practices include employment security policies, hiring selectivity, extensive training, performance-based compensation, and employee involvement. During the past several decades, organizations in many industries have transformed work processes and the role of the production worker through the introduction of high performance work systems. Organizations are under tremendous pressure to change and adopt new development systems. The difficulty has been on how organizations choose strategies that could help them to create a magic system that respond to the establishments needs within a short span of time. It is important to note that in countries such as United State of America it has been difficult to do a wholesome adaptation of worldwide acclaimed systems such as lean. However, research shows that the HR systems of high performing companies do have many things in common, and that they differ in measurable ways from those of low-performing companies. Specifically, these HR systems are “high-performance work systems” (HPWSs). HPWSs generate more job applicants, screen candidates more effectively, provide more and better training, link pay more explicitly to performance, and provide a safer work environment, among many other things. In terms of measurable outcomes, these HPWSs produce more qualified applicants per position, more employees hired based on validated selection tests, more hours of training for new employees, and a higher percentage of employees receiving regular performance appraisals. The general aim of the HPWSs is to maximize the competencies and abilities of employees throughout the organization.32 “Unit! re Concepts Entrepreneurship and Management Concer! thin the context of the guidelines laid down by his UU see in this chapter, the company’s strategic ola Every manager makes decisions wi business, for instance, in terms of the Markets her company’s strategic plan. ee : 2 nce, is of t Saal “tual compete and a ways in which it will einige a from j competitors. The strategic plan lays out the broad eae ma ‘in ine the company’s managers take decisions. It thereby has a big in . a fe ; Wh sorts of people should we hire 2” What kind of sales ce lo “ nee | 2" Whey production methods will we use 2” and “How should we build oud rand image and market our products ?” In a very real sense, then, the HR manager can’t make intelligent decisions regarding how to design the company’s HR systems unless he OF she understands how each of those systems helps the company achieve its strategic goals, SRY 2. 3. How can a system lead to customer delight ? 4, Explain Steven Alter’s Nine Elements Work System Model. Explain IPO model. What do you understand by high performance system design ?