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Question: Victoria SA makes ‘fantastically good cakes’ from

Victoria SA makes ‘fantastically good cakes’ from basic ingredients such as flour, eggs and butter. Demand for Victoria sponge cakes comes from two sources. Some big retailers place their order with the firm two days in advance, whilst other customers arrive at Victoria’s own shops without prior warning and select from cakes that are on display. This means that some cakes are made in line with orders, whilst a forecast is also required to predict day-to-day demand. Whilst there are many varieties of cake, the bill of material for the famous Victoria sponge cake is shown in Figure 6.2. When overall demand across the range has been collated, Victoria SA is able to determine how much of each ingredient will be needed to make the right number of cakes. Too many and cakes will have to be thrown away, because the shelf life is five to eight days (Victoria does not use stabilisers such as potassium sorbate). Too few and sales will be lost. Accurate planning is thus crucial to the efficiency of the whole operation. The ideal situation is that cakes are made and delivered just-in-time to meet customer demand because inventories will be low and freshness at its best. Figure 6.2 Structured bill of materials for sponge cake
Victoria SA makes ‘fantastically good cakes’ from basic ingredients such as flour, eggs and butter. Demand for Victoria sponge cakes comes from two sources. Some big retailers place their order with the firm two days in advance, whilst other customers arrive at Victoria’s own shops without prior warning and select from cakes that are on display. This means that some cakes are made in line with orders, whilst a forecast is also required to predict day-to-day demand. Whilst there are many varieties of cake, the bill of material for the famous Victoria sponge cake is shown in Figure 6.2. When overall demand across the range has been collated, Victoria SA is able to determine how much of each ingredient will be needed to make the right number of cakes. Too many and cakes will have to be thrown away, because the shelf life is five to eight days (Victoria does not use stabilisers such as potassium sorbate). Too few and sales will be lost. Accurate planning is thus crucial to the efficiency of the whole operation. The ideal situation is that cakes are made and delivered just-in-time to meet customer demand because inventories will be low and freshness at its best. Figure 6.2 Structured bill of materials for sponge cake In an effort to increase sales, Victoria SA decided to increase the product range. Strawberry jam is the traditional filling, but marketing considers that customers would also like other types of filling and decides to try blackberry jam, apricot jam, lemon curd and chocolate. Over the course of the next few months, the experiment appears to be working. Overall sales are up by 10 per cent, with each of the new varieties contributing well. The problem, however, is that no stable pattern exists in the mix of sales. For example, some days the chocolate-filled cakes sell out, whilst on other days hardly a single chocolate-filled cake is sold. Major retail customers are complaining about wastage and lost sales opportunities. The issue appears to be that offering increased variety has led to less stability in the demand pattern, as illustrated by the master production schedule (MPS) in Table 6.1. Whilst total daily cake demand is reasonably stable, at around 200 cakes, the demand for each variant is highly uncertain. This leads to high inventory levels, due to inaccurate sales forecasts, and increased complexity in the production operation, as shown by the MRP calculation for gross and net requirements in Table 6.2. Table 6.1 Master production schedule (MPS) for sponge cakes (before postponement) The MRP calculations, which are shown for the same one-week period as the MPS, can be explained as follows: 1. Gross requirement for total finished cakes, and each cake variant, is taken from the MPS. 2. Net requirement of cakes is calculated by subtracting the existing inventory from the gross requirement. 3. Inventory of finished cakes is high (equivalent to almost four days’ demand) because demand for each variant is highly uncertain and therefore sales forecasts are inaccurate. 4. The net requirement for total finished cakes is exploded (by multiplying it by the BOM quantity for each cake mix ingredient plus icing) to give the gross requirement for each of the cake mix ingredients and the icing. Table 6.2 Gross and net requirement calculations for one week demand for sponge cake (before postponement). ‘Exploding’ is indicated by arrows 5. The net requirement for each of the cake ingredients is calculated by subtracting the existing inventory and any scheduled receipts. 6. The inventory of cake mix ingredients is low (equivalent to about one day’s demand with another day’s demand scheduled for receipt). This is a result of the relatively stable demand for the total number of cakes leading to accurate sales forecasts. 7. The net requirement for each of the finished cake variants is exploded (by multiplying it by the BOM quantity for jam) to give the gross requirement for each jam flavour. The net requirement of jam is calculated in the same way as for cake mix ingredients (point 5 above). 8. Inventories of the various jams are high (they cover requirements for the coming weeks without need for scheduled receipts), and therefore the net requirement is zero. This is due to inaccurate sales forecasts caused by the uncertain demand for each cake variant. To fix the unexpected problems, Victoria SA decided on a new way of working. It is recognized that demand is not going to stabilize, given the increased product range. The firm decided to adopt a postponement strategy by making standard cakes and then postponing final assembly until known demand is available. The basic cake is a standard component, whilst the filling is non-standard and represents the source of complexity and variable customer demand. Cakes are therefore kept in the standard form and turned into the final form only by adding the filling once customer orders have been received. Victoria SA applied postponement to the supply chain and introduced a decoupling point (Section 5.3) at the end of the cake making process. Upstream of the decoupling point, overall demand is forecasted to inform sourcing decisions. Standard components are baked each morning. Downstream of the decoupling point, cakes are assembled to order in line with customer orders. The time this activity takes has been minimized by setting up a workstation with cakes, filling and spreading tools arranged in a mini flow-line. This brings the production time (P-time: see Section 5.3) within the time the customer is prepared to wait (D-time). Carrying out the operation in view of the customer also helps engage them and extends their D-time to a minute or so, long enough to complete the final assembly task. The flexibility of the new operation means that customers no longer need to place an order two days in advance. Victoria SA can now supply from the new process if orders are received by major customers the day before. An unexpected benefit of the new approach is the ease with which innovations can be test marketed and adopted. Question How do you think the MPS, the MRP gross/net requirements calculations and the inventories (finished cake and ingredients) might be different after the implementation of postponement?
In an effort to increase sales, Victoria SA decided to increase the product range. Strawberry jam is the traditional filling, but marketing considers that customers would also like other types of filling and decides to try blackberry jam, apricot jam, lemon curd and chocolate. Over the course of the next few months, the experiment appears to be working. Overall sales are up by 10 per cent, with each of the new varieties contributing well. The problem, however, is that no stable pattern exists in the mix of sales. For example, some days the chocolate-filled cakes sell out, whilst on other days hardly a single chocolate-filled cake is sold. Major retail customers are complaining about wastage and lost sales opportunities. The issue appears to be that offering increased variety has led to less stability in the demand pattern, as illustrated by the master production schedule (MPS) in Table 6.1. Whilst total daily cake demand is reasonably stable, at around 200 cakes, the demand for each variant is highly uncertain. This leads to high inventory levels, due to inaccurate sales forecasts, and increased complexity in the production operation, as shown by the MRP calculation for gross and net requirements in Table 6.2. Table 6.1 Master production schedule (MPS) for sponge cakes (before postponement)
Victoria SA makes ‘fantastically good cakes’ from basic ingredients such as flour, eggs and butter. Demand for Victoria sponge cakes comes from two sources. Some big retailers place their order with the firm two days in advance, whilst other customers arrive at Victoria’s own shops without prior warning and select from cakes that are on display. This means that some cakes are made in line with orders, whilst a forecast is also required to predict day-to-day demand. Whilst there are many varieties of cake, the bill of material for the famous Victoria sponge cake is shown in Figure 6.2. When overall demand across the range has been collated, Victoria SA is able to determine how much of each ingredient will be needed to make the right number of cakes. Too many and cakes will have to be thrown away, because the shelf life is five to eight days (Victoria does not use stabilisers such as potassium sorbate). Too few and sales will be lost. Accurate planning is thus crucial to the efficiency of the whole operation. The ideal situation is that cakes are made and delivered just-in-time to meet customer demand because inventories will be low and freshness at its best. Figure 6.2 Structured bill of materials for sponge cake In an effort to increase sales, Victoria SA decided to increase the product range. Strawberry jam is the traditional filling, but marketing considers that customers would also like other types of filling and decides to try blackberry jam, apricot jam, lemon curd and chocolate. Over the course of the next few months, the experiment appears to be working. Overall sales are up by 10 per cent, with each of the new varieties contributing well. The problem, however, is that no stable pattern exists in the mix of sales. For example, some days the chocolate-filled cakes sell out, whilst on other days hardly a single chocolate-filled cake is sold. Major retail customers are complaining about wastage and lost sales opportunities. The issue appears to be that offering increased variety has led to less stability in the demand pattern, as illustrated by the master production schedule (MPS) in Table 6.1. Whilst total daily cake demand is reasonably stable, at around 200 cakes, the demand for each variant is highly uncertain. This leads to high inventory levels, due to inaccurate sales forecasts, and increased complexity in the production operation, as shown by the MRP calculation for gross and net requirements in Table 6.2. Table 6.1 Master production schedule (MPS) for sponge cakes (before postponement) The MRP calculations, which are shown for the same one-week period as the MPS, can be explained as follows: 1. Gross requirement for total finished cakes, and each cake variant, is taken from the MPS. 2. Net requirement of cakes is calculated by subtracting the existing inventory from the gross requirement. 3. Inventory of finished cakes is high (equivalent to almost four days’ demand) because demand for each variant is highly uncertain and therefore sales forecasts are inaccurate. 4. The net requirement for total finished cakes is exploded (by multiplying it by the BOM quantity for each cake mix ingredient plus icing) to give the gross requirement for each of the cake mix ingredients and the icing. Table 6.2 Gross and net requirement calculations for one week demand for sponge cake (before postponement). ‘Exploding’ is indicated by arrows 5. The net requirement for each of the cake ingredients is calculated by subtracting the existing inventory and any scheduled receipts. 6. The inventory of cake mix ingredients is low (equivalent to about one day’s demand with another day’s demand scheduled for receipt). This is a result of the relatively stable demand for the total number of cakes leading to accurate sales forecasts. 7. The net requirement for each of the finished cake variants is exploded (by multiplying it by the BOM quantity for jam) to give the gross requirement for each jam flavour. The net requirement of jam is calculated in the same way as for cake mix ingredients (point 5 above). 8. Inventories of the various jams are high (they cover requirements for the coming weeks without need for scheduled receipts), and therefore the net requirement is zero. This is due to inaccurate sales forecasts caused by the uncertain demand for each cake variant. To fix the unexpected problems, Victoria SA decided on a new way of working. It is recognized that demand is not going to stabilize, given the increased product range. The firm decided to adopt a postponement strategy by making standard cakes and then postponing final assembly until known demand is available. The basic cake is a standard component, whilst the filling is non-standard and represents the source of complexity and variable customer demand. Cakes are therefore kept in the standard form and turned into the final form only by adding the filling once customer orders have been received. Victoria SA applied postponement to the supply chain and introduced a decoupling point (Section 5.3) at the end of the cake making process. Upstream of the decoupling point, overall demand is forecasted to inform sourcing decisions. Standard components are baked each morning. Downstream of the decoupling point, cakes are assembled to order in line with customer orders. The time this activity takes has been minimized by setting up a workstation with cakes, filling and spreading tools arranged in a mini flow-line. This brings the production time (P-time: see Section 5.3) within the time the customer is prepared to wait (D-time). Carrying out the operation in view of the customer also helps engage them and extends their D-time to a minute or so, long enough to complete the final assembly task. The flexibility of the new operation means that customers no longer need to place an order two days in advance. Victoria SA can now supply from the new process if orders are received by major customers the day before. An unexpected benefit of the new approach is the ease with which innovations can be test marketed and adopted. Question How do you think the MPS, the MRP gross/net requirements calculations and the inventories (finished cake and ingredients) might be different after the implementation of postponement?
The MRP calculations, which are shown for the same one-week period as the MPS, can be explained as follows: 1. Gross requirement for total finished cakes, and each cake variant, is taken from the MPS. 2. Net requirement of cakes is calculated by subtracting the existing inventory from the gross requirement. 3. Inventory of finished cakes is high (equivalent to almost four days’ demand) because demand for each variant is highly uncertain and therefore sales forecasts are inaccurate. 4. The net requirement for total finished cakes is exploded (by multiplying it by the BOM quantity for each cake mix ingredient plus icing) to give the gross requirement for each of the cake mix ingredients and the icing. Table 6.2 Gross and net requirement calculations for one week demand for sponge cake (before postponement). ‘Exploding’ is indicated by arrows
Victoria SA makes ‘fantastically good cakes’ from basic ingredients such as flour, eggs and butter. Demand for Victoria sponge cakes comes from two sources. Some big retailers place their order with the firm two days in advance, whilst other customers arrive at Victoria’s own shops without prior warning and select from cakes that are on display. This means that some cakes are made in line with orders, whilst a forecast is also required to predict day-to-day demand. Whilst there are many varieties of cake, the bill of material for the famous Victoria sponge cake is shown in Figure 6.2. When overall demand across the range has been collated, Victoria SA is able to determine how much of each ingredient will be needed to make the right number of cakes. Too many and cakes will have to be thrown away, because the shelf life is five to eight days (Victoria does not use stabilisers such as potassium sorbate). Too few and sales will be lost. Accurate planning is thus crucial to the efficiency of the whole operation. The ideal situation is that cakes are made and delivered just-in-time to meet customer demand because inventories will be low and freshness at its best. Figure 6.2 Structured bill of materials for sponge cake In an effort to increase sales, Victoria SA decided to increase the product range. Strawberry jam is the traditional filling, but marketing considers that customers would also like other types of filling and decides to try blackberry jam, apricot jam, lemon curd and chocolate. Over the course of the next few months, the experiment appears to be working. Overall sales are up by 10 per cent, with each of the new varieties contributing well. The problem, however, is that no stable pattern exists in the mix of sales. For example, some days the chocolate-filled cakes sell out, whilst on other days hardly a single chocolate-filled cake is sold. Major retail customers are complaining about wastage and lost sales opportunities. The issue appears to be that offering increased variety has led to less stability in the demand pattern, as illustrated by the master production schedule (MPS) in Table 6.1. Whilst total daily cake demand is reasonably stable, at around 200 cakes, the demand for each variant is highly uncertain. This leads to high inventory levels, due to inaccurate sales forecasts, and increased complexity in the production operation, as shown by the MRP calculation for gross and net requirements in Table 6.2. Table 6.1 Master production schedule (MPS) for sponge cakes (before postponement) The MRP calculations, which are shown for the same one-week period as the MPS, can be explained as follows: 1. Gross requirement for total finished cakes, and each cake variant, is taken from the MPS. 2. Net requirement of cakes is calculated by subtracting the existing inventory from the gross requirement. 3. Inventory of finished cakes is high (equivalent to almost four days’ demand) because demand for each variant is highly uncertain and therefore sales forecasts are inaccurate. 4. The net requirement for total finished cakes is exploded (by multiplying it by the BOM quantity for each cake mix ingredient plus icing) to give the gross requirement for each of the cake mix ingredients and the icing. Table 6.2 Gross and net requirement calculations for one week demand for sponge cake (before postponement). ‘Exploding’ is indicated by arrows 5. The net requirement for each of the cake ingredients is calculated by subtracting the existing inventory and any scheduled receipts. 6. The inventory of cake mix ingredients is low (equivalent to about one day’s demand with another day’s demand scheduled for receipt). This is a result of the relatively stable demand for the total number of cakes leading to accurate sales forecasts. 7. The net requirement for each of the finished cake variants is exploded (by multiplying it by the BOM quantity for jam) to give the gross requirement for each jam flavour. The net requirement of jam is calculated in the same way as for cake mix ingredients (point 5 above). 8. Inventories of the various jams are high (they cover requirements for the coming weeks without need for scheduled receipts), and therefore the net requirement is zero. This is due to inaccurate sales forecasts caused by the uncertain demand for each cake variant. To fix the unexpected problems, Victoria SA decided on a new way of working. It is recognized that demand is not going to stabilize, given the increased product range. The firm decided to adopt a postponement strategy by making standard cakes and then postponing final assembly until known demand is available. The basic cake is a standard component, whilst the filling is non-standard and represents the source of complexity and variable customer demand. Cakes are therefore kept in the standard form and turned into the final form only by adding the filling once customer orders have been received. Victoria SA applied postponement to the supply chain and introduced a decoupling point (Section 5.3) at the end of the cake making process. Upstream of the decoupling point, overall demand is forecasted to inform sourcing decisions. Standard components are baked each morning. Downstream of the decoupling point, cakes are assembled to order in line with customer orders. The time this activity takes has been minimized by setting up a workstation with cakes, filling and spreading tools arranged in a mini flow-line. This brings the production time (P-time: see Section 5.3) within the time the customer is prepared to wait (D-time). Carrying out the operation in view of the customer also helps engage them and extends their D-time to a minute or so, long enough to complete the final assembly task. The flexibility of the new operation means that customers no longer need to place an order two days in advance. Victoria SA can now supply from the new process if orders are received by major customers the day before. An unexpected benefit of the new approach is the ease with which innovations can be test marketed and adopted. Question How do you think the MPS, the MRP gross/net requirements calculations and the inventories (finished cake and ingredients) might be different after the implementation of postponement?
5. The net requirement for each of the cake ingredients is calculated by subtracting the existing inventory and any scheduled receipts. 6. The inventory of cake mix ingredients is low (equivalent to about one day’s demand with another day’s demand scheduled for receipt). This is a result of the relatively stable demand for the total number of cakes leading to accurate sales forecasts. 7. The net requirement for each of the finished cake variants is exploded (by multiplying it by the BOM quantity for jam) to give the gross requirement for each jam flavour. The net requirement of jam is calculated in the same way as for cake mix ingredients (point 5 above). 8. Inventories of the various jams are high (they cover requirements for the coming weeks without need for scheduled receipts), and therefore the net requirement is zero. This is due to inaccurate sales forecasts caused by the uncertain demand for each cake variant. To fix the unexpected problems, Victoria SA decided on a new way of working. It is recognized that demand is not going to stabilize, given the increased product range. The firm decided to adopt a postponement strategy by making standard cakes and then postponing final assembly until known demand is available. The basic cake is a standard component, whilst the filling is non-standard and represents the source of complexity and variable customer demand. Cakes are therefore kept in the standard form and turned into the final form only by adding the filling once customer orders have been received. Victoria SA applied postponement to the supply chain and introduced a decoupling point (Section 5.3) at the end of the cake making process. Upstream of the decoupling point, overall demand is forecasted to inform sourcing decisions. Standard components are baked each morning. Downstream of the decoupling point, cakes are assembled to order in line with customer orders. The time this activity takes has been minimized by setting up a workstation with cakes, filling and spreading tools arranged in a mini flow-line. This brings the production time (P-time: see Section 5.3) within the time the customer is prepared to wait (D-time). Carrying out the operation in view of the customer also helps engage them and extends their D-time to a minute or so, long enough to complete the final assembly task. The flexibility of the new operation means that customers no longer need to place an order two days in advance. Victoria SA can now supply from the new process if orders are received by major customers the day before. An unexpected benefit of the new approach is the ease with which innovations can be test marketed and adopted. Question How do you think the MPS, the MRP gross/net requirements calculations and the inventories (finished cake and ingredients) might be different after the implementation of postponement?

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> Nike has a central customer service centre (distribution centre) located at Laakdal in Belgium. The centre is 200,000 square meters in size and serves 45,000 customers in EMEA with footwear, apparel and equipment. The centre receives products from suppli

> The subject of air miles appears regularly in media headlines today. Here are two contrasting views of what is happening. Supermarkets and food producers are taking their products on huge journeys, despite pledging to cut their carbon emissions. Home-gro

> Rio Tinto is a globally operating mining company that has created central buying centres, including one in Singapore where dedicated teams buy in the supply market against forecasted demand from businesses inside Rio Tinto. This is different from traditi

> SC Johnson, the consumer products company, has gone through a major development in its Asian procurement operations, in an effort to incorporate the region into the global governance. Whilst, in the past, Asia was a more removed decentralized outpost wit

> Once the problems of introducing ‘just-in-time’ production systems (internal logistics) had been solved at the Xerox plant making photocopiers at Venray in Holland, attention shifted towards the finished product invent

> Walmart has set three ambitious goals for sustainability: 1. To be supplied by 100 per cent renewable energy. 2. To create zero waste. 3. To sell products that sustain the environment. In moving towards these goals, several key projects have been rolled

> Akzo, the Dutch-based chemicals and coatings company, owner of ICI and many other brands, has appointed a CSR officer to drive and coordinate CSR efforts across the company. To drive ownership, consideration and focus broadly across the company and in al

> When Airbus introduced its Airbus A380 double decker super plane in January 2005 to the press and the world it was an impressive show that brought out government leaders and made headlines all over the world. A little while later, however, delays to the

> The supply chain manager of OTIF plc is considering investment into a computerized routing and scheduling system for the distribution operation. The initial capital expenditure will be £25,000 and it is anticipated to have a useful life of f

> Komplex GmbH has four production lines, each of which operates for 8,000 hours a year. Each line makes a number of products, which are based on size and colour. Therefore, many changeovers are required, each incurring set-up and maintenance costs. Tradit

> Glup SA supplies a range of household soaps to supermarkets in northern Europe. There are 12 stock-keeping units (SKUs) in the range. The logistics manager has determined that an investment of €0.5 million on improved material handling equipment would co

> Filmco makes two thin film (gauge = 12μm) products for packaging applications in the food industry. Product A is coated so that subsequently it can be printed on; product B is uncoated. There is no changeover time on the production line, be

> Bond SA is planning to manufacture a new product with an initial sales forecast of 3,600 units in the first year at a selling price of €800 each. The finance department has calculated that the variable cost for each truck will be â

> Food supply chains are driven often by retailers and this holds for this case, which features a food sold in supermarkets that can be classed as a fast-moving consumer good (FMCG). Table 3.2 illustrates the cash-to-cash cycle times for three companies in

> For more than a century, Kimberly Clark (K-C) has supplied personal care products and now can claim that nearly a quarter of the world’s population, across 175 countries, use their products.. The K-C product range spans personal care, h

> Tesco PLC is the UK’s largest food retailer, with a revenue of about £51 billion for the financial year 2016–17. Across 11 countries in Central Europe and Asia, Tesco employs about 440,000 people making it

> Consider how you would react to 360-degree feedback. If you were the one receiving the feedback, whose views would you value most: your manager’s or your peer’s? If you were asked to assess a peer, would you want your opinion to affect that peer’s raises

> For junior-level employees who are trying to impress higher-ups and secure themselves a very lucrative career in the investment banking and financial services industry, the demands and stress levels can be especially intense. The responsibility, workload

> As Bobby Kotick described, a lot of the job satisfaction felt by Activision Blizzard employees comes from the mission of their company. One employee summarized that mission this to a number of dif ferent jobs at a number of dif ferent companies. Employee

> The move toward driverless cars represents another battlefield for Lyft and Uber. For its part, Lyft has forged relationships with General Motors, MIT, and Maymo—a division of Google’s parent company, Alphabet. Lyft’s plan is to create a suite of hardwar

> Accenture, one of the world’s largest and most successful consulting and professional services firms, recently abandoned its long-standing practice of evaluating the job performance of employees on an annual basis by ranking them against each other based

> Clearly the end goal behind the Improving Worker Well-Being initiative is laudable. The stickier question is how to achieve that goal in 72 different factories. A natural temptation would be to focus on interventions with universal appeal and to roll out

> When AT&T purchased Time Warner and its accompanying properties, including HBO, there was no shortage of individuals who wondered how the two cultures would mix. Communications expert Gary Arlen told The New York Times, “HBO’s and AT&T’s cultures also co

> Figure 2-3 classifies production deviance and political deviance as more minor in nature than property deviance and personal aggression. When might those “minor” types of counterproductive behavior prove especially cos

> Although ex-CEO Margo Georgiadis’ restructuring ideas were lauded internally at Mattel and many believed they were starting to show results, the environment shifted quickly for the toy company when retailer Toys ‘R’ Us declared bankruptcy and financial r

> Although it didn’t start that way, few people doubt the ability of Daniel Ek (CEO of Spotify) to be able to follow through any more. One early investor said, “When I first met him, he could completely articulate how this could affect the music industry a

> One of Emma Walmsley’s biggest challenges when she stepped into the CEO role at GlaxoSmithKline (GSK) was to use her power and influence effectively to start to change the strategic focus of the company. Under the prior CEO, Sir Andrew Witty, GSK had tak

> The growing number and insidiousness of cyber-threats has become a huge concern for companies that are responsible for the security of private user data, account information, personal information, passwords, and so forth. The average cost of a data breac

> Teams are taken very seriously at Whole Foods. Not only are company employees referred to as “team members,” but teams are given a great deal of freedom to make important decisions. For example, teams help decide what items to order and sell, and how to

> The U.S. Marine Corps is a large organization with a highly recognizable culture that values mental and physical toughness, pride, and character. However, with emerging technologies and other geopolitical trends, the battlefield is changing in ways that

> At one point, Marriott’s personality assessment was supplied by Kronos—a human resource software company. Kronos became a larger presence in the personality assessment arena after acquiring Unicru—a firm that specialized in such tests. Kronos/Unicru has

> Slack is certainly not the only chat or messaging system in use inside organizations but it is certainly one of the biggest. Estimates now hold that over 40 percent of American workers now use a chat app of some kind at work. That number goes up to more

> In addition to trust, Salesforce has a strong commitment to its equality value. The company is one of the first to employ a chief equality officer—Tony Prophet. “I’d been 40 years in the traditional business world, where we were told that creating shareh

> Ed Bastian’s profit-sharing formula stands as one of his biggest legacies. Originally, the formula gave employees 10 percent of Delta’s first $2.5 billion in pretax profits. They would then earn 20 percent of the profits beyond that $2.5 billion. Later,

> Describe the job that you currently hold or hope to hold after graduation. Now look up that job in the O*NET database. Does the profile of the job fit your expectations? Are any task behaviors missing from O*NET’s profile?

> When you think of the U.S. Postal Service’s culture, what kinds of words come to mind? Where do these impressions come from? Do you think your impressions are accurate? What has the potential to make them inaccurate?

> How can two companies with very different cultures that operate in the same industry both be successful? Shouldn’t one company’s culture automatically be a better fit for the environment?

> Is it possible for an employee to have personal values that are inconsistent with the values of the organization? If so, how is this inconsistency likely to affect the employee’s behavior and attitudes while at work?

> If you worked in a matrix organization, what would be some of the career development challenges that you might face? Does the idea of working in a matrix structure appeal to you? Why or why not?

> Which of the organizational forms described in this chapter do you think leads to the highest levels of motivation among workers? Why?

> Which is more important for an organization: the ability to be efficient or the ability to adapt to its environment? What does this say about how an organization’s structure should be set up?

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