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Part 1

Understanding business functions


The main idea of this part is to understand the basic theories in motivation through display a case of SEIMENS
and how company uses these theories to motivate their employee.


Scientific management

Which is comprised of Taylor's work as well as that of another classical theorist Max Weber, Taylorism or the
Taylor system, Taylor himself referred to it as Process management) is a theory of management that analyzes
and synthesizes workflows, with the objective of improving labor productivity. The core ideas of the theory were
developed by Frederick Winslow Taylor in the 1880s and 1890s, He began trying to discover a way for workers
to increase their efficiency when he was the foreperson at the Midvale Steele Company in 1875. Taylor believed
that decisions based upon tradition and rules of thumb should be replaced by precise procedures developed after
careful study of an individual at work. Its application is contingent on a high level of managerial control over
employee work practices.

Taylorism is a variation on the theme of efficiency, it is a late 19th and early 20th century instance of the larger
recurring theme in human life of increasing efficiency, In management literature today, the greatest use of the
concept of Taylorism is as a contrast to a new, improved way of doing business. In political and sociological
terms, Taylorism can be seen as the division of labor pushed to its logical extreme, with a consequent de-skilling
of the worker and dehumanization of the workplace.

General approach of scientific management
                 Shift in decision making from employees to managers
                  Develop a standard method for performing each job
                 Select workers with appropriate abilities for each job
                  Train workers in the standard method previously developed
                 Support workers by planning their work and eliminating interruptions
                 Provide wage incentives to workers for increased output
                     Labor is defined and authority/responsibility is legitimized/official
                     Positions placed in hierarchy and under authority of higher level
                     Selection is based upon technical competence, training or experience
                     Actions and decisions are recorded to allow continuity and memory
                     Management is different from ownership of the organization
                     Managers follow rules/procedures to enable reliable/predictable behavior
                     Did not appreciate the social context of work and higher needs of workers.
                     Did not acknowledge variance among individuals.
                     Tended to regard workers as uninformed and ignored their ideas and suggestions.

So the main idea of scientific management is specialization and standardization and this will suitable for mass
company production which no need for innovation ideas
by reading the case of SIEMENS and what appears a bout management leadership style and the kind of business
they conduct which need high respond to the environment change to maintain high market share and good
reputation so the company will never use this management style to conduct their business.

So the modern working environment is different from the need of the modern working environment today
engineering needs people with greater capability and flexibility. Engineering staff at all level need to use their
knowledge and flexibility. Engineering staff at all levels need to use their knowledge and skills in many different
situations. At Siemens. The culture encourages employees to become more involved in their work, suggesting and
implementing improvements

Herzberg Theory (1)

In this theory as we see in the figure (1) consists of tow factor motivation factor and Hygiene factors these factor is
the main effect to Job satisfaction and dissatisfaction according to the people need that should be satisfied in
workplace .

 According to Herzberg’s two-factor theory (motivation and hygiene), an employee benefit is a necessary and
sufficient working condition. The hygiene factor will affect employees’ work motivation and thus productivity.
In the stimulus-response behavior, employees’ work-motivation, seen as the response, can be analyzed from
absence rate, leave rate, quit rate, get-to-work speed and so on. Productivity can be analyzed from quality and
quantity of products. The quality indices include faults and returns. The quantity indices include completion time
and the production hygiene factor. This depends on the individual properties of the employee, who is the medium
essential for management, and stimulates employees to enhance their work and productivity.
In addition, everyone works in expectation of some rewards (both spiritual and material), and welfare is one of
them. In other words, the degree of reward influences the quality and quantity of work, and in turn productivity.
Hence it is important to explore how to give the stimulus (welfare) in order to promote work motivation and

“Siemens manager have to balance dissatisfies against motivators. By putting the polices and procedures that may
cause dissatisfaction have to be managed. To reduce dissatisfactions Siemens believes the best method is to raise
awareness of issues with employees and encourage their involvement. They then understand and recognize the
need for change. Motivators at Siemens are the factors that stimulate engineers to work in the best way possible.
They enjoy the characteristic of their roles. Being empowered helps them to manage their roles and enables them
to use this power to change thing “ ( TMA 1 Part I case study)

Abraham Maslow theory is the same as Fredrick Herzberg that people have needs that should be satisfied with in
the work place but each of them classify the needs differently.

How does the Hierarchy Work?

A person starts at the bottom of the hierarchy (pyramid) and will initially seek to satisfy basic needs (e.g. food,

Once these physiological needs have been satisfied, they are no longer a motivator. the individual moves up to the
next level

Safety needs at work could include physical safety (e.g. protective clothing) as well as protection against
unemployment, loss of income through sickness

Social needs recognize that most people want to belong to a group. These would include the need for love and
belonging (e.g. working with colleague who support you at work, teamwork, communication)

Esteem needs are about being given recognition for a job well done. They reflect the fact that many people seek
the esteem and respect of others. A promotion at work might achieve this

Self-actualization is about how people think about themselves - this is often measured by the extent of success
and/or challenge at work

Maslow's model has great potential appeal in the business world. The message is clear - if management can find
out which level each employee has reached, then they can decide on suitable rewards.

Problems with the Maslow Model

There are several problems with the Maslow model when real-life working practice is considered:

Individual behavior seems to respond to several needs - not just one

The same need (e.g. the need to interact socially at work) may cause quite different behavior in different

There is a problem in deciding when a level has actually been "satisfied"
The model ignores the often-observed behavior of individuals who tolerate low-pay for the promise of future

There is little empirical evidence to support the model. Some critics suggest that Maslow's model is only really
relevant to understanding the behavior of middle-class workers in the UK and the USA (where Maslow undertook
his research)

“Siemens provides the opportunity for employees to fulfill their higher-order needs….. Esteem is about having
self-respect and the respect and the respect of others. Feeling that one’s work is making a difference can improve
self-esteem” ( TMA part I case study)

“Self- actualization is concerned with workers fulfilling their potential. Engineering work allows employees to
this by enabling them to get involved and take responsibility for their own jobs. Individuals can seek to make
improvement and changes …. Siemens offers engineering staff training and development opportunities. This links
with self actualization as it helps engineers to extend their capabilities which may lead to progression up the
career ladder. Training and development also helps individuals to meet the changing demand of the business
global markets” ( TMA part I case study)

 Quit apart from the benefit and moral value of a altruistic approach to treating colleagues as human being and
respecting human dignity in all its forms
A basic benefit of motivation is that the motivated employees always look for better ways to do a job and at the
same time they are more quality oriented, apart from being more productive. What is significant is that the
workplace is about midway between the extremes of high threat and high opportunity. Motivation by threat is a
dead-end strategy. This thus basically makes the staff more attracted to the opportunity side of the motivation
curve than the threat side.
Job performance = (ability) (motivation)
So the organization must choose the most suitable strategies for enhance motivations through improving its
culture and structure, according to kind of product or service which offers, organizations strategies toward growth
on market,
So motivation will have indirect effect on
          Improving Market share
          Improving productivity
          Company growth policies
          Products and services quality
          Enhance social responsibility

Part II
IKEA SWOT Analysis and Sustainable Business planning:
Through this case study we will give definitions for SWOT and illustrate differences between the internal and
external factors then I will give example for local Arab Company and apply SWOT analysis after that discussing
the differences and similarities between the company I will choose and IKEA
SWOT analysis
 Is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved
in a project or in a business venture. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favorable and unfavorable to achieving that objective.
A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be
incorporated into the strategic planning model.
                             Strengths: attributes of the person or company those are helpful to achieving the
                             Weaknesses: attributes of the person or company those are harmful to achieving the
                             Opportunities: external conditions those are helpful to achieving the objective(s).
                             Threats: external conditions which could do damage to the objective(s).
Identification of SWOTs are essential because subsequent steps in the process of planning for achievement of the
selected objective may be derived from the SWOTs.
Example of SWOT analysis:
Strengths could be:
                                Your specialist marketing expertise.
                                A new, innovative product or service.
                                Location of your business.
                                Quality processes and procedures.
                                Any other aspect of your business that adds value to your product or service.
A weakness could be:
                                Lack of marketing expertise.
                                Undifferentiated products or services (i.e. in relation to your competitors).
                                Location of your business.
                                Poor quality goods or services.
                                Damaged reputation.

An opportunity could be:
                              A developing market such as the Internet.
                              Mergers, joint ventures or strategic alliances.
                              Moving into new market segments that offer improved profits.
                              A new international market.
                              A market vacated by an ineffective competitor.
A threat could be:
                              A new competitor in your home market.
                              Price wars with competitors.
                              A competitor has a new, innovative product or service.
                              Competitors have superior access to channels of distribution.
                              Taxation is introduced on your product or service.
About Midas
Midas furniture was established in 1993 with the vision to offer affordable, high-quality furniture and
accessories. Our strategy was guided by a commitment to build a solid business that could grow with the market,
both in terms of product selection and corporate infrastructure.
Midas has since grown to become the largest Home and Office furniture retailer in its markets operating 9 large
and friendly showrooms with over 750 employees in Kuwait, Jordan, Iraq, Qatar, Dubai and Saudi Arabia.

Supporting wide range product differentiation from home furniture, office furniture and home accessories to
satisfy large range segments of target customers. And one of the company growth strategies through different
geographical area.


Free delivery

All purchase are delivered free of charge

Free assembly and setup

Experienced technicians will assemble the furniture in no time and at no extra charge

Free storage up 100 days

Purchased goods can be stored up to 100 days free of charge.

Free 2 Years Maintenance

At no charge, only Midas offer to its customers a FREE Maintenance / REPAIR Service. Just call your sales
representative and our technicians will take care of the rest.

Interior Design Service

If you need help in designing the interior of your home or office, Midas Design Consultants will offer our
customers plans and advice on furniture layouts and decoration ideas.

Cancellations, Exchange and Refund Policy

We will Cancel, Exchange or Refund your purchase within 30 days, provided goods still in their original cartons.
Once delivered and assembled, then they cannot be Canceled, Exchanged or Returned.

Trade In

Trade your old furniture for new one. Check for offer conditions and details at any of Midas showrooms.

 Strengths                                                 Weaknesses
            Advantages of proposition                                Disadvantages of proposition
         Capabilities                                    Gaps in capabilities
         Wide range of products                          Lack of competitive strength
         Competitive advantages                          Financials
         USP's (unique selling points)                   Timescales, deadlines and pressures
         Resources, Assets, People                       Cash flow, start-up cash-drain
         Experience, knowledge, data                     Continuity, supply chain robustness
         Financial reserves, likely returns              Effects on core activities,
      Marketing - reach, distribution,               distraction
    awareness                                            Reliability of data, plan
         Innovative aspects                          predictability
                                                          Morale, commitment, leadership
         Location and geographical
                                                          Accreditations, etc
         Price, value, quality
                                                          Processes and systems, etc
        Accreditations, qualifications,
    certifications                                        Management cover, succession
        Processes, systems, IT,
    communications on line shops good web
    site presentation.
         Free maintenance

Opportunities                                    Threats
         Market development                              Legislative effects
         Competitors' vulnerabilities                    Political effects
         Industry or lifestyle trends                    Environmental effects
       Technology development and                        IT developments
                                                          Competitor intentions - various
         Global influences
                                                          Market demand
         New markets, vertical, horizontal
                                                          New technologies, services, ideas
         Niche target markets
                                                          Vital contracts and partners
         Geographical, export, import
                                                          Sustaining internal capabilities
         New USP's
                                                          Obstacles faced
         Tactics - surprise, major contracts,
    etc                                                   Insurmountable weaknesses
         Business and product development                Loss of key staff
         Information and research                        Sustainable financial backing
         Partnerships, agencies, distribution            Economy - home, abroad
          Volumes, production, economies


Both companies have the same threats in external environment like economic factors and social trends

Both companies also have the same weakness of the size and scale of its global business, and need for low cost


Both of them have strong global band name
Both of them have wide range product
Both of them have good reputation in market place
Both company have wide range of distributers
Both of them use high technology

Both company have good growth opportunities
New product development
 Kotler, keller, marketing manager,2009, person international edition,13ed
 Thomas l. wheelen, j.David hunger , strategic management and business policy, 2009, person
international edition, 11ed

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