Business analysis- Quantitative article-The differential effects of job design on knowledge workers and manual workers

Based on the scientific management theory, the workers or employees demands are not relevant to their efficiency. However, in 1970s, some research showed that ignoring workers’ will caused dysfunctional outcomes. Thus, through job redesign or job-enrichment programs, these outcome will be reduced. According to recent research, although the job satisfaction and job performance are not very positive strong connected, the authors divided workers into two groups, including knowledge workers(KWs) and manual workers(MWs). They believed that either Taylor-ism or job enrichment theories can benefit the corporations if “we were able to understand the circumstance under which they could more effectively applied”( Ming Yan at el，2011). They conducted hypothesis tests to prove their points.

In authors’ opinion, the critical element of job design is job enrichment. There are two assumptions about job redesign in according with different theories. First, job resign is to enhance workers effort by meeting “employee’s psychological and social needs” . On the other hand, for Taylor-ism, job redesign can be integrated into optimization efficiency theories. It is only a part of it. The authors research would based on their two job nature assumptions. According to recent studies, KWs and MWs have different pattens. Thus, authors propose two hypothesis that Job enrichment would increase KWs “job satisfaction and task performance” but decrease MWs’.

The authors collected samples from Program Developments Department(PDD) and the Logistics Department (PDD) in IT industry in Shenzhen in China. The first one was KW group, the other is MW group. Also, they made establish a control group to be put another way to prove experiment consequence. The experiment concluded three phases, which could roughly divide to pretest phase, enrichment phase and posttest phase. By comparing employees’ satisfaction and performance in the the pretest phase and post-test phase, the authors identified their hypotheses were not be rejected. 

As we know, Human resource management(HRM) is one of important management practice field. Moreover, appropriate HRM is the foundation of the successful profitable corporation. For example, for law firms or accounting firms, their profit were highly relevant to the lawyers or accountant performance. Thus, HR should establish job enrichment programs to motivate their performance improvement. For large enterprise', HR should build such program prudentially. First, it is a huge management expense for the company. Second, as the authors proved, the job enrichment will caused the lower performance than before for MWs. For example, UPS, a huge global package delivery company, was succeeded through training their employees to follow instruction strictly. If it want enhance their delivery driver innovation, it will cause confusion. Thus, HR leaders should establish the job redesign programs in accordance with jobs characteristic.

Reference:

Yan, Ming, Peng, Kelly Z. Francesco, &Anne Marie, The differential effects of job design on knowledge workers and manual workers: A quasi-experimental field study in China. Human Resource Management 5/6-2011, Vol. 50 Issue 3, p407-424, 18p Retrieved from:


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Qualitative article ---Offshore outsourcing of customer relationship management: conceptual model and propositions

This article explains the reasons and results of Customer relationship management (CRM) offshore outsourcing intensity, which is measured by the ratio of a business’ expenditures accounted for by CRM offshore outsourcing to its total CRM-related expenditures.  The purposes of the article are to provide a conclusive and consistent view on the impact of CRM offshore outsourcing. To understand the performance consequences of offshore outsourcing of CRM well, both supply-side and demand-side effects have to be considered. With the development of globalization and the increasing competition, multinational companies are forced to outsource their products and services in order to reduce cost, such as labor cost and product cost. This article is important because it propose a model describe the causes and outcomes of customer relationship management systematically and conclusively. At the same time, this article illustrates CRM offshore outsourcing impacts financial performance and operating performance not only positively but also negatively, not like other articles (e.g, Agrawel et al. 2006)

According to the concept model presented in the article, it shows that Reasons of CRM offshore outsourcing intensity are reflected in 5 aspects that are macro business environment, industry, firm, product and task. To explain the reasons well, the author specifies the 5 aspects into 11 characteristics that are exhibited in Figure 1.

Most of the characteristics will induce offshore outsourcing positively, others negatively. The impact of CRM offshore outsourcing intensity is negative to customer relationship performance, however, the impact is positive to financial performance. Under this circumstance, the relationship can be mediated by each other. The conclusions above are supported by utilize agency theory, institutional theory, resource dependence theory and the structure-conduct-performance paradigm.

For practicing manager, low labor cost, developed information systems environment are not the only considerations for a firm to decide either offshore outsourcing or other ways.  Other factors should be considered for good performance such as current degree of internationalization of the firm. 

References:

Agrawal, M., Kishore, R., & Rao, H. R. (2006). Market reactions to e- business outsourcing announcements: an event study. Informa- tion Management, 43(October), 861–873.

Link: http://libproxy.uhcl.edu:6047/article/10.1007/s11747-011-0291-0/fulltext.html

Quantitative Article- Market Diversion and Market Power: California Eggs

    

The journal article Market Diversification and Market Power: California Eggs investigates accusations of price fixing of United States egg producers and the potential effects that is has on competition in the United States by exporting excess capacity abroad to keep prices high domestically and increase market power of the egg producers. This article was written in response to numerous anti trust lawsuits were filed in 2008 claiming market power and competition were being corrupted by the exportation of excess egg production that increased egg prices (Allender 2010). The hypothesis was tested in the Visalia, California that had an Albertson’s, Food Co and Von’s and a Wal-Mart that did not sell grocery items eliminating them from the study(Allender 2010).

            This article is important because it examines how exporting goods can affect the competitiveness among retailers and producers of products, which has the potential to harm consumer interests. This anti competitive strategy can transfer to many different industries of perishable and non-perishable items. The article explains that eggs are a great case study for a violation of the Capper-Volstead Act which is an act allowing producers to form associations for agricultural products¹. To give some background of the egg industry it is a recently consolidated market that is vertically integrated with only a small portion of the eggs exported because of the perishability of the product (Allender 2010). United Egg Producers Association (UEP) in which 90% of the egg market is a part of and is protected by the Capper-Colstead Act (Allender 2010). The (UEP) cooperates to have handling and quality control standards but the UEP also supervises the output and if output is too high they are able to take measures to decrease the supply of eggs in the market (Allender 2010).

            The article is a hypothesis-testing article that tests if egg producers export excess supply of eggs to decrease the domestic supply which increase the price for retailers and consumers. A model of the California egg industry was used to account for the choices a consumer concerning the store the consumer purchases the eggs, the selection of eggs at the store and the brand the consumer purchases, the promotional activities affecting the sale of eggs. The supply of eggs is measures market power by using the Bertrand Nash model and standard deviation were a signal of increased market power due to the exportation of eggs. Retail prices were measured as well as the producers’ size and cartons, marginal costs, and differentiation among the eggs and input prices. The results found that producer margins are positively correlated to egg exports but this power is declining over time. The losses amounted to $399,111 a year in Visalia where the hypothesis was tested but in terms of the welfare in United States it could amount to $1.19 billion a year(Allender 2010). This huge loss in the United States would warrant a Department of Justice or Federal Trade Commission investigations because of the large impacts the exportation of the excess supply of eggs has on the country and consumer welfare (Allender 2010)..

            Practicing managers selling goods or commodities should be made aware of this article because the concept can apply to many industries that produce goods that have an ability to be exported. Retailing managers should understand the value chain relationship in their industry and what is done with excess capacity.  The excess capacity in this case circumvented the laws of supply and demand and used exportation to keep prices high for the retailers creating low profit margins.

Allender, W., & Richards, T. (2010). Market Diversion and Market Power:

California Eggs. Review Of Industrial Organization, 36(1), 37-58.

doi:10.1007/s11151-009-9235-y

¹http://www.uwcc.wisc.edu/info/capper.html

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