Perspectives on the productive dilemma

Summary                      

Perspective of productive dilemma this article discovers the real effects of team work and an individual worker representative powered with exploitation and exploration in an organization. It also synthesizes several recent perspectives on the dynamics of ambidexterity and the productivity dilemma. Productive dilemma is shown to occur due to inappropriate balance between efficiency and exploitation with innovation and exploration. Exploitation is found to be more beneficial and adoptive by maximum organizations, this outnumbers exploration in those industries. The authors seek to sort out these mechanisms and the contingencies. Skills, routines and constant progress disciplined in an organization gave a right sight to their judgments that skilled employees work too well and fast for the assigned task.

The article also makes it transparent that deliberate Perturbations in organizations gives positive impact on dynamic efficiency and organizations augmentation, case in point of Toyota. Abernathy’s productivity dilemma obvious elucidation is brought by organization Ambidexterity ability which is not pace impossible this is confirmed with Toyota’s working example. The article identifies two dimensions tension between efficiency and adaptability. One relates to dynamics of organizations as complex systems. Second dimension of tension relates to two sided nature of bureaucracy.

Practical application with Qantas Airways

Qantas Airways, Australia’s largest airline, the oldest continuously operated airline in the world and the second oldest in the world overall. The Industry works with great work ethics and integrity. Their strategies include:

–        Strong portfolio performance

–        Continuing record results for Jet Star and Qantas Frequent Flyer.

–        Revenue growth of 6%

–        Yield and unit cost improvements.

–        Offset by industrial action and record high fuel costs.

–        Improvement in net operating cash flow of 5%

–        Strategic initiatives to transform Qantas International and grow Jet Star in Asia.

However, their business has not been fruitful in achieving these strategies. The business is currently in huge loss to be precise by 90% profit downgrade shocking the market. . It’s a very, very, heavy loss for the international business and what’s probably more alarming is that they have put a profit guidance of between $50 million and $100 million on financial year ending 2012 when there is only 20 odd days left in the financial year and the current income shows no signs of achieving them at all. This was stated by Tony Webber, formerly the Qantas chief economist and now Associate Professor with the University Of Sydney Business School.

The organization could make use of a different approach, separating international airways from domestic is not the solution to the problem. The organization has no internal learning and active participation among its employees for contributing towards its growth and development.

The applications of PDCA (plan do check action) of Edward Deming can solve their issues related to customers and internal organization affairs. The current gap between its employees and Qantas airlines is great indeed this process of PDCA measures the gap whether that is large, strategic or small and operational.

To use Problems as an opportunity to succeed. The current problem of heavy losses and losing its market trust in Qantas has to be tackled creatively, the organization should seek the government of Australia to stop giving extra rights to other airlines that are growing quickly. This way foreign carrier cannot have control over the market giving Qantas equal chance for high growth. This way Jet star could grow in Asia and Qantas in the existing market of top airlines.

The organization has to make use of ambidexterity in their productive dilemma for increasing the growth sales. High level of efficiency with the flexibility to evolve and improve over time. For this operations management perspective are essential to understand the mechanics of their internal and external working environment which Qantas currently lacks on a high scale.

Constant experimentation, Quality benchmarking, drive to achieve impossible goals and good relation between the different levels of management is vital for its development and regaining its position to be a dominant best service catered organization. Qantas poisonous corporate culture is the root cause of its downfall. It was known as the worst managed airline in 2011.

The airline is a satisfactory travel for many of its customers; however it has never exceeded them. It is therefore important for them to make use efficiency along with innovation. The organization has to start setting up purposeful and deliberate working environment to create good results. This way it could learn through the wrong steps taken and avoid doing them further.

Different methods of inventory like First in First Out, Kaizan and many others have to be put into practice. Airline is a perishable industry; the amount of capital investment is expensive. The service capacity lost in one travel can never be recovered as that time won’t return; therefore insufficient travelers would mean loss of huge amount of service and money expected in return from that flight. The airline to avoid this situation reduced its fare rates than its competitors however this was not the right move for problem solving, as it led to create paradox of inferior quality among its customers.

Key things in managing the organization and useful strategies

–        Stock of ample inventory of spare parts quickly replaces the defective parts and runs the function smoothly; this provides no pressure to find out exactly why the spare part was defective.

–        Use of inventories like Kaizan, Jidoka, TQM, First in First Out method helps in triggering immediate problem solving.

–        Reframing trade off points to the right plays vital role in managing organization. Quality defects are a form of waste. Therefore eliminating cost inefficiencies in the same process- waste of motion, materials or space. Creating a large space for Win -Win situation.

–        Investment and attention in HR practices boost employee motivation, skill and adaptability.

–        Using Burecracy as a tool in organization and not as a weapon. Practicing it with employee consent, in a standard and systematic process powered with innovation not eliminating non work time.

–        Systematizing of process by combining motivation, knowledge and skill situated throughout the organization gives positive outcomes.

Conclusion

Deliberate contradictory view points within the organization and challenges given to employees are put forth in the article. These are useful to find solution by transcending differences rather than by separating to compromises. This Sustains both efficient practice and innovation. Its application in practical business environment is difficult but not impossible as it is been proved by existing successful business organizations.