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Organizing For The Services Unit 6
Organizing For The Services Unit 6
Organizing For The Services Unit 6
unit 6
Production line vs Empowerment approach
to managing employees
Production line approach to service
how service operations can be made more efficient by
applying the logic and tactics of manufacturing.
• Simplification of tasks,
• clear division of labor,
• substitution of equipment and systems for employees,
and
• little decision-making discretion afforded to employees;
in short, management designs the system and
employees execute it.
• Product line is based on the control model of organization design and
management with clearly defined roles, top down control system
hierarchical pyramid structure and assumption that management knows
best. The features mentioned below are concentrated at the top of the
organization
1. Power to influence work procedures and organizational direction (e.g.,
quality circles, self-managing teams)
2. Information about operating results and measures of competitive
performance
3. Rewards based on organizational performance (e.g., bonuses, profit
sharing, stock ownership)
4. Knowledge/skills that enable employees to understand and contribute
to organizational performance
Production line approach
example(McDonald)
• Workers are taught how to greet customers, and ask for their order (including
a script for suggesting additional items).
• There is then a set procedure for assembling the order (for example, cold
drinks first, then hot ones), placing various items on the tray, and placing the
tray where the customers need not reach for it.
• Next, there is a script and a procedure for collecting money and giving
change.
• Finally, there is a script for saying thank you and asking the customer to come
again.
• This production-line approach gives the organization control over, and
uniformity of, the customer-server interaction. It is easily learned, so workers
can be quickly trained and put to work.
Employee empowerment approach
Employee empowerment
• A management practice of sharing information, rewards, and
power with employees so that they can take initiative and
make decisions to solve problems and improve service and
performance.
• Empowerment is based on the idea that giving employees
skills, resources, authority, opportunity, motivation, as well
holding them responsible and accountable for outcomes of
their actions, will contribute to their competence and
satisfaction.
Factors Favoring Employee Empowerment