Solved by verified expert:Review the Indiana case study and discuss if Governor Kernan’s decision was in the best interest of the Indiana taxpayers? Did he make the right decision to cancel the outsourced contract? Provide some specific information from the case to support your answer. Then relate your Let’s Go Shopping experience. 2 references
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Systems
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Unit
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1
6
B
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Interdependence
Unit Three
Interdependence
Interdependence
To varying degrees, the performance of each
segment affects and is affected by the
performance of all others. The overall health
of the organization depends on the
S
performance of its components.
A
N
D
As subprocesses are analyzed, it is possible to lose the key component: the interdeE
pendence of the subprocesses. All of the subprocesses
must function together. This
R of the organization and the environrequires an understanding of the holistic nature
ment that surrounds it. As stated earlier, the
S performance of one element of the organization affects the performance of all of the others. The failure of a single family mem,
ber to perform his or her tasks affects all of the other family members. The failure of a
single employee in a complex, modern organization to perform assigned tasks will also
R
affect all of the other employees and the organization
as a whole.
O
This is universal whether the organization is the single family or the modern organiN
zation. The connections between the subfunctions and the external environment
N
must be considered.
Y
Industry Level
Interdependence:
connectedness at a higher level
7
7
In the example on page 2.8, the automobile 1door latch
company was used to demonstrate that within
6 an
organization, the performance of each segment affects
B
and is affected by the performance of all others. The
U
example also highlighted that within an organization,
there are connections that do not necessarily appear
on the organizational chart. Moving to the next level,
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.
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)
S
A Fifty years ago, the “Big Three” were all
NU.S. based companies and dominated the
world automotive market. Today, one of
D the “Big Three” is Daimler-Chrysler, the
Eresult of a merger between a U.S. companyRand a German company. This illustrates
another level of connectedness: the global level.
Before moving to that level, the
S
national economy should be noted.
,
GLOBAL
LEVEL
Rinternational organization which was able,
Owith a very small number of active particiNpants, to interrupt the political, economic,
Nand social life of the United States and
Ythe world in general. The economic center
of the United States, New York City, literally stopped. The repercussions of the
7attack were felt
7around the
In order to understand the level of interconnectedness in the world today, we can 1world. In comlook at historical examples for contrast.
6parison, John
Prior to the middle of the Twentieth
BBrown’s raid
Century, geographic separation defined on Harper’s
U
Ferry, West
the limits of human connectedness.
Virginia, had
Technological advances significantly
significant
altered the transportation industry with
implications,
seemingly irreversible consequences.
but the effect
was localized;
It is generally accepted that one individthe initial
ual, Osama bin Laden, developed an
3.3
Systems ~n~ Practice Online – Unit Three: Interdependence
Unit Three
Interdependence
E
C
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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 of organizations, and its implications, provides the basis for movement from organizaS
tional analysis.
A
N
D
E
R
S
In the new paradigm, in order to be effective,
managers must focus on the rela, Taylor’s model, managerial efforts are
tionships rather than the specific tasks. In
directed toward identification of the “one best way” to solve a particular problem. In
the new paradigm, there can be no “one best
Rway” because the interaction between the
various elements of the system and the external environment is dynamic. The “one best
O
way” today will probably not be so tomorrow. Managers are therefore confronted with an
N method of ensuring long-term survival
environment of uncertainty in which the primary
N
is to manage relationships and to develop a macro-view
Y et al.,
of the organization and its environment (Kaplan
Some
2001).the external environment is dynamic.
Environmental
7
The “one best way” today will probably not be so
7
tomorrow. Managers are therefore confronted with an
1
environment of uncertainty in which the primary
method of ensuring long-term survival is to6manage
relationships and to develop a macro-view B
of the
organization and its environment (Kaplan et
U al.,
2001).
3.4
Systems ~n~ Practice Online – Unit Three: Interdependence
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
minivan at a plant in Lincoln,
Alabama. Nissan is expanding its U.S.
S operations by constructing a plant in
A Canton, Mississippi, a $1.43 billion
N investment, to manufacture minivans
and Altimas. The Canton facility joins
D Nissan’s Smyrna, Tennessee plant.
E And Toyota, manufacturer of the
R extremely popular Camry, produces
S most of the Camrys sold in the United
States at its Georgetown,
, Kentucky plant.
R
O
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Honda
7
BMW, another German leader
Toyota
7
in the luxury auto market, manufactures two of its models, the
BMW
1
Nissan
X5 and Z4, at its plant in
6
Spartanburg, South Carolina.
B
Honda
Like Mercedes, BMW expanded
U
its plant shortly after opening it
to add additional product lines. Nissan
Mercedes Benz
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
In an attempt to improve the efficiency of processing
S
unemployment claims, Indiana’s state government conA Indian firm, Tata America International
tracted with an
N update its computers. Tata America’s bid
Corporation, to
for the contract was $15.2 million, $8.1 million
D less than the next lowest bid. Two
other U.S. based companies bid on the contract,
E but no Indiana firm was large enough
to compete for it. Proponents of the deal pointed out that outsourcing the work would
R
develop new workforces and increase consumer buying power in fast-growing markets
S
such as India, China, and Russia. As many as 65 jobs would be created in Indiana
and local subcontractors would be hired. ,
INDIANA
Governor Joe Kernan cancelled the contract after residents of Indiana, outraged at the
R
state’s award of the contract to a foreign firm, protested. Kernan justified the cancellaO
tion of the contract by saying that the Department of Workforce Development had
N in such a way Indiana companies were
structured the invitation to bid on the contract
N
“virtually knocked out of the running.” Opponents
charged that state officials had a
legal obligation to put Indiana residents first.
Y
Department of Workforce Development officials argued that the contract would have
7
saved Indiana taxpayers millions and would not have cost any Indiana citizen a job.
7
The Indiana legislature responded by introducing legislation that contracts with state
1 U.S. citizens authorized to work in the
agencies must include the provision that only
6
United States can be hired.
B
Discussion Questions
U
1. Which side do you support?
2. Was the governor justified in canceling the 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 Brown Do for Toshiba?
S
Japanese electronics manufacturer
Toshiba and U.S. delivery service
A
provider UPS partnered to provide Toshiba notebook computer cusN
tomers improved repair service. UPS employees at its Louisville,
D
Kentucky hub, trained by Toshiba,
repair computers shipped by UPS
from UPS Stores. Toshiba notebook
owners in need of repair service
E
simply take the computer to one
R of thousands of UPS Stores and drop it
off. UPS packs the computer and ships it to Louisville. At the Louisville facility,
S
Toshiba certified UPS employees repair the computer and repack it for return directly
,
to the customer through the UPS delivery system,
sometimes by the next day. UPS’s
expertise in household delivery and its network of retail locations compliments its supply chain management proficiency in the delivery
of parts from Toshiba to the
R
Louisville hub for use in the repairs. UPS previously operated similar arrangements
O
with InFocus, for digital projectors, and Lexmark International, for printers. Under
Toshiba’s old system, repairs typically took N
eight to ten days. With the UPS partnership, repair time, from drop off to return, was
N reduced to four days.
Y
TOSHIBA
7
Discussion Questions:
7 arrangement?
1. How do consumers benefit from this
1 this
2. How do Toshiba and UPS benefit from
arrangement?
6
3. Do you think this is a more efficient
B process than
having consumers ship directly?
U
3.7
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 government operations. Many people participate in programs where small amounts are
S account and invested in small denomideducted from each paycheck or their bank
A
nation Treasury bonds. T-bills and other securities
provide a way to invest with an
almost zero risk of default.
N
D limited to individuals or to U.S. citizens.
Ownership of U.S. Treasury securities is not
In fact, did you know that foreign governments
E routinely purchase U.S. Treasury
securities? Approximately $1.3 trillion in U.S.
R Treasury securities are owned by foreign governments, primarily through their equivalents
of the Federal Reserve Bank.
S
Japan ($720 billion) and Mainland China ($174 billion) are the largest holders of
,
U.S. Treasury securities. Why would foreign governments invest in Treasury securities? The primary reason is to protect the value of their own currencies in the internaR
tional currency markets.
O
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The next 6 pages illustrate examples of
7
interdependence in different types
of
7
organizations: a tire manufacturer,
1
a college, and a hospital. Study
the examples and compare
them to your own
organization.
6
B
U
The Economy
Your Industry
Your
Organization
3.8
Systems ~n~ Practice Online – Unit Three: Interdependence
Unit Three
Interdependence
Interdependence Structure Worksheet
Company Level
Manufacturing Example – Goodyear Tire Co.
OSHA
S of
Department
A
Labor
PolyOne
Regulator
N
Governing
D
Body
E
R
S
,
Rubber
Supplier
Michelin
Partner /
Competitor
R
O
Goodyear
N
Tire
N
Company
Y
General Tire
Partner /
Competitor
7
7
1
6
B
U
Local University
Chamber of
Commerce
Community
Partner / Asset
Employer
HR Provider
3.9
Systems ~n~ Practice Online – Unit Three: Interdependence
Unit Three
Interdependence
Interdependence Structure Worksheet
Industry Level
Manufacturing Example – Goodyear Tire Co.
Transportation
Industry
Partner
General Motors
Partner /
Purchaser
S
A
Government
N
Regulator
D
E
R
S
,
R
O
N
Tire
N
Industry
Y
Steel Industry
Partner /
Supplier
Toyota
Partner /
Purchaser
7
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1
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3.10
Rubber Industry
Government
Partner /
Supplier
Tax base
Systems ~n~ Practice Online – Unit Three: Interdependence
Information
Technology
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
S
McGraw-Hill
A
Book
N
Supplier
D
E
R
S
,
Government
R
O
N
ETHE
C O L LN
E G E
SUCCES
Y S
B
Department of
Education
L
University of
Tennessee
Partner /
Competitor
7
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1
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3.11
State
Government
Private
Companies
Partner / Asset
HR Provider
Systems ~n~ Practice Online – Unit Three: Interdependence
Community
Unit Three
Interdependence
Interdependence Structure Worksheet
Industry Level
Service Example – Bethel College
Information
Technology
System Support
Private Sector
Financial
Support
S
Government
A
Financial
N
Subsidy
D
E
R
S
,
R
O
N
Education
N
Industry
Y
Transportation
Industry
Commuters
Private Sector
Labor Supply
7
7
1
6
B
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Healthcare
Industry
Government
Information
Technology
Tax Base
Researchers
3.12
Systems ~n~ Practice Online – Unit Three: Interdependence
Qualified Talent
Unit Three
Interdependence
Interdependence Structure Worksheet
Company Level
Service Example – Healthcare
State Medical
Board
Governing
Body
General
Hospital
Partner /
Competitor
S
Med-Tech
A
Medical
N
Supplier
D
E
R
S
,
R
O
N
Baptist
N
Hospital
Y
Department
of Health
Government
General
Hospital
Partner /
Competitor
7
7
1
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B
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3.13
Physicians
Clinic
Local
Companies
Medical
Outpatient Clinic
Healthcare
Provider
Systems ~n~ Practice Online – Unit Three: Interdependence
Community
Unit Three
Interdependence
Interdependence Structure Worksheet
Industry Level
Service Example – Healthcare
Information
Technology
System
Support
Education
Industry
Personnel
S
A
N
Financial
D
Subsidy
E
R
S
,
Government
R
O
N
Healthcare
N
Y
Insurance
Industry
General
Population
7
7
1
6
B
U
3.14
Education
Industry
Social Security
Administration
Researchers
Retirement
Age
Systems ~n~ Practice Online – Unit Three: Interdependence
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.
S
A
N
D
E
R
S
,
R
O
N
N
Y
7
7
1
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B
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3.15
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.
S
A
N
D
E
R
S
,
R
O
N
N
Y
7
7
1
6
B
U
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, its country of origin, and the price.
Item
(Example)
1.
2.
3.
T-shirt
S
Made in:
A
China
N
D
E
R
S
,
4.
5.
6.
7.
R
O
N
N
Y
8.
9.
10.
11.
12.
7
7
1
6
B
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13.
14.
15.
3.17
Systems ~n~ Practice Online – Unit Three: Interdependence
$
8.99
Systems
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Practice
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Unit
7
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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
#2
S
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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
required to achieve the goals. Achievement of the objectives is the outcome, or result,
of the effective and efficient management of S
the processes that occur within the organization. A work process is the sequence of steps that lead to the attainment of the orgaA
nization’s stated objectives. Each of these levels represent stages as we move through
N
the organization from the macro (mission/vision)
to the micro (processes).
}
#3
to help attain
your Goals
R
Figure 4.2
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}
}
#4
4.3
D
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Devise Objectives
7
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B
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Improvise Processes
to accomplish your
Objectives Figure 4.3
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
o
c
e
s
s
e
s
________
________
________
________
________
________
R
O
N
N
Y
7
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B
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Objective C
Elective
Courses
P
r
o
c
e
s
s
e
s
Objective D
Objective C
Objective B
Objective D
MBA
Program
________
________
________
________
________
________
P
r
o
c
e
s
s
e
s
________
________
________
________
________
________
Administration
External
Operations
New Territories
Recruiting
Marketing Public Relations
Advertising
4.4
Objective A
S
A
N
D
GOAL
E 3
Comprehensive
R Offerings
Academic
S
,
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:______________________________
___________________________________________
S
___________________________________________
A
_______________ …
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