DEVELOPMENT OF PRODUCT, SERICE OR PROCESS

Development Of Product, Serice Or Process

Development Of Product, Serice Or Process

2(a)

Sony's human resource policies broke all traditions. Sony eschewed the common Japanese method of consensus in decision-making (called ringi) and gave people authority to make independent decisions. New Sony employees of all ranks and descriptions were required to spend a few months on the production line to learn the company's products and processes. Furthermore, Sony placed engineers and scientists in sales jobs to understand that new products also needed to be saleable. Sony sought to fill senior posts with people from a wide variety of backgrounds.

Cost and Material of Developing a Process

Sony composed of nothing but processes. Management is responsible for process definition, tracking, and improvement. Most managers fail to understand this concept and instead rely on firefighting.When putting value innovation strategies into action, structural conditions create only the potential for individuals to share their best ideas and knowledge. To actualize this potential, a company must cultivate a corporate culture conducive to willing collaboration.

Intellectual Capital

Assessing, developing, and protecting the intangible assets is critical to the viability of the company. For example, voluntary and involuntary turnover represents intellectual assets walking out the door.

Organizational Capital

The how or process of transforming inputs into outputs varies both in type and quality. Outstanding companies have found ways to set up their processes that are unique or that outperform competitors.(Kaplan, 2007, 71)

Human Capital

The cost of replacing an employee ranges from one to four times his or her annual salary. The range has to do with the employee's level of expertise. The higher the skill level is, the more value the employee can add, and therefore, the more difficult replacement becomes. Replacement cost is one way of thinking about human capital, one way to quantity it. Another way to develop human capital is through learning. Employees learn both formally (e.g., training sessions) and informally (e.g., experience and coaching). As they pick up new knowledge, their ability to contribute to the organization grows—they become more valuable assets. (Edvinsson, 2004, 366)

There are five tools for increasing human competence in a firm, site, business, and plant:

Buy the competence by hiring new talent.

Build the competence by investing in employee learning and training.

Borrow the competence by hiring consultants and forming partnerships with suppliers, customers, and vendors to share knowledge, create new knowledge, and bring in new ways to work.

Bounce the incompetence by removing those employees who fail to change, learn, and adapt.

Bind the competence by finding ways to keep the most valuable workers.

Social Capital

The flow of information through the organization is as fundamental to company health as the flow of blood through one's body. The flow of information is influenced by several factors including formal structure, process, culture, and goals. However, the most central factor in creating value out of the flow of information is relationship between the individuals involved in the work.

2(b)

The study of training can be divided into two broad areas: determinants and ...