University of San Carlos

Talamban Campus
Bachelor of Science in Industrial Engineering

CASE STUDY NO. 1

FOR THE FULLFILLMENT OF THE REQUIREMENTS

ON
PRODUCTIONS SYSTEMS
IE323 TTH 1:30-3:00PM

Submitted by:

Abangan, Jaian Marie M

Amores, Nicole Mae.
Apuya, Maja Andrea M.
Geson, Judy Mae L.
Molina, Rebecca
Taracatac, Paula Krystal P.

Submitted to:
Ms.Lorafe Lozano

March 2017

Case Study 1- Productions System Page 1

 Table of Contents

I. Introduction to Case Study...............................................................................3

II. Data Presentation and Analysis
Data Presentation............................................................................................5
Data Analysis...................................................................................................6
Alternatives.....................................................................................................10
III. Conclusions....................................................................................................12
IV. References.....................................................................................................13
V. Appendices.....................................................................................................14

Case Study 1- Productions System Page 2

 I. Introduction to Case Study

Productions and operations management doesnt only deal with the transformation of
goods and services to meet the demand of the customers but also with the idea of focusing on
the role of people in anycompany; which includes their work cultures, human resource
strategies and work performance. Employees at any level, it could be the managers,
subordinates and low level co-worker gives much impact in the business industry; they are the
ones who progress and give life to the company. Employees deserve to have good environment
at work in order for them to perform more efficient and effective in any aspects of tasks.

This case study attains and aims to differentiate the work cultures of two supermarket
companiesand then determine how it affects to work performance. Work culture is a big factor in
seeking good productivity at work because it plays an important role in extracting the best out of
employees and making them stick to the organization for a longer duration. An ideal and
effective company gives proper etiquette and guidelines to be followed for every employee. This
includes the employees leisure time, adversity or stress towards work, labour planning,
strategies, knowledge and their capabilities and motivation. Work schedules are also important
and should be properly allocated among the employees. Working time is considered to be the
center of work, it hurts employee morale when they do not have a schedule that serves their
skills and needs. It is also difficult for them to have less time to be spared for the family when
the company requires enormous time for overtime. Job classification and work rules, depending
on its rigidity, may improve or weaken the employees performance; however, a flexible
workplace is needed if the objective of an organization is to gain a competitive advantage. Aside
from having the rules and policies in any organization, it is far most important to be equal among
the employees. The workers should be able to have good leisure time as much as they have in
work. Since employees may work for financial reasons, it is important to have motivation and
incentive systems which are fostered in an organization using not only financial rewards but also
non-financial incentives such as awards and recognitions. Performance appraisal and
performance management serves as a big role in proper work culture. These are important
because managers and employees work together to plan, monitor and review an employees
work objectives and overall contribution to the organization.

Different companies may also have different work cultures, one is better than the other
but both may have benefits. The case study shows the difference of work cultures of Germany
and USA, and these differences completely affect their individual work performance. Companies
sink or swim based on their internal culture. One bad cause can have a huge effect on morale,
productivity and ultimately, the bottom line. It is essential for employees to enjoy at the
workplace for them to develop a sense of loyalty towards it. This highly affects their
performance which includes strong relationship with others, exceeding expectations towards
work and higher productivity.The organizations success depends on the employees
performance; poor performance is detrimental to the goals of the company. On the other hand,
creating a well-rounded approach in managing the work culture of the employees, not only the
customers would love to go back in the business but also the workers would love to work
effectively as well. To have full initiative in answering the demands of the customers and
continue showing progress to the company they work in.

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 KARSTADT vs. JC PENNEY

Andreas Drauschke and Angie Clark work comparable jobs for comparable pay at department
stores in Berlin and suburban Washington. But there is no comparison when it comes to the
hours they put in.

Mr.Drauschkes job calls for a 37-hour week with 6 weeks annual vacation. His store closes for
the weekend at 2 PM on Saturday afternoon and stays open one evening each week a new
service in Germany that Mr.Drauschke detests. I cant understand that people go shopping at
night in America, says the 29-year old, a supervisor at Karstadt, Germanys largest department
store chain. Logically speaking, why would someone need to buy a bicycle at 8:30 PM?

Mrs. Clark works at least 44 hours a week, including evening shifts and frequent Saturdays and
Sundays. She often brings paperwork home with her, spends her days off scouting the
competition and never takes more than a week off at a time. If I took any more, Id feel like I
was losing control, says the merchandising manager at JC Penney.

While Americans often marvel at German industriousness, a comparison of actual workloads

explodes such national stereotypes. In manufacturing, for instance, the weekly US average is
37.7 hours and rising; in Germany, it is 30 hours and has fallen steadily over recent decades. All
German workers are guaranteed by law a minimum of 5 weeks annual vacation.

The German department store workers also fiercely resist any incursions on their leisure hours,
while many JC Penney employees work second jobs and rack up to 60 hours a week. Long and
irregular hours come at a price, however. Staff turnover at the German store is negligible; at JC
Penney, it is 40% a year. Germans serve apprenticeships of 2 to 3 years and know their wares
inside out. Workers at JC Penney receive training of 2 to 3 days. And it is economic necessity,
more than any devotion to work for its own sake, that appears to motivate most of the American
employees.

Mr.Drauschke has a much different view: Work hard when youre on the job and get out as fast
as you can. A passionate gardener with a wife and young child, he has no interest in working
beyond the 37 hours his contract mandates, even if it means more money. Free time cant be
paid for, he says.

The desire to keep hours short is an obsession in Germany and a constant mission of its
powerful unions. When Germany introduced Thursday night shopping in 1989, retail workers
went on strike. And Mr.Drauschke find it hard to staff the extra 2 hours on Thursday evening,
even though the late shift is rewarded with an hour less overall on the job.

Mr.Drauschke like other Germans also finds the American habit of taking a second job
inconceivable. I already get home at 7. When should I work? he asks. As for vacations, it is

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illegal yes, illegal for Germans to work at other jobs during vacations, a time that is strictly
for recovering.

At JC Penney, Mrs. Clark begins the workday at 8AM. Though the store does not open until
10AM, she feels she needs the extra time to check floor displays and schedules. Most of the
sales staff clock in at about 9AM to set up registers and restock shelves a sharp contrast to
Karstadt, where salespeople come in just moments before the shop opens.

Discussion Questions:
1. How does the work culture in the US differ from that in Germany?
2. What do you see as the basic advantages and disadvantages of each system?
3. If you were the top operation executive for an international department store chain with
stores in both Germany and the US, what basic issues would you need to address
regarding policies for your employees?
4. Under which system would you prefer to work

Note: expound, explain your answers...

From Operations Management by J. Heizer and B. Render

II. Data Presentation and Analysis

Data Presentation

The following table shows data from two department stores, in Berlin, Germany and in
Washington, USA.

Mr.Drauschekes ( Berlin, Mrs. Clark (Washington, USA)

Germany)
Hours/ week 37 hours/ week 44 hours/ week
Vacation 6 weeks/ year No vacation
Weekends Closes every Saturday (2pm) Frequent Saturdays and
Sundays
Evening Shifts Only one evening shift/ week Includes evening shifts

The following table shows data from the manufacturing work conditions in US and in Germany.

MANUFACTURING
BERLIN, GERMANY WASHINGTON, USA
Average hours/ week 30 hours/week 37.7 hours/ week
Vacation 5 weeks/year None

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Data Analysis

Discussion Questions:

1. How does the work culture in the US differ from that in Germany?

Basically the differences between the work culture of U.S. and Germany rests at
human resource policies with regard to quality of work life, work rules, work
trainings, work motivation and work schedules

1.1 Quality of work life

Germany (Karstadt) is more efficient in providing intangible rewards such
as quality time with the family thru loose work schedules
USA (J.C. Penney) is more efficient in giving out concrete or monetary
rewards thru tight work schedules

1.2 Work Rules

Germany (Karstadt) has flexible work rules with a negligible staff turnover
rate
USA (J.C. Penney) has strict work rules which prove inflexible given the
high staff turnover of 40% a year.

1.3 Work Trainings

Germany (Kardstadt) provides apprenticeship of two to three years which
enhances job identity, job significance and autonomy
USA (J.C. Penney) provides work culture that is firmly grounded on
monetary returns which explains the fleeting or week motivation among
employees. Provides short trainings raging from two to three days.

1.4 Work Motivation

German employees (Kardstadt) are not merely financially motivated but
quality oriented, both in work-related aspects and selfcentered
intentions.
USA employees (J.C. Penney) are motivated to work because of
monetary returns and self-centered intentions

1.5 Work Schedules

Germany (Kardstadt) work schedules are very flexible with only one
evening shift and only 37 hours/ week work shift. German companys give
6 weeks/ year vacation.
USA (J.C Penney) work schedules are very tight with evening and
weekend shifts and with no yearly vacation.

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 2. What do you see as the basic advantages and disadvantages of each system?

BERLIN, GERMANY
ADVANTAGES DISADVANTAGES
No overtime No overtime pay
More leisure time
Flexible work schedule
(no weekend shifts and only one
evening shift per week)
Efficient training for new employees
(2-3 years apprenticeship)
Negligible employee turnover
Guaranteed vacation time
Monetary and non-monetary rewards
Motivated employees

As seen from the table above, Berlin Germany gains advantages in its prestigious work
culture. Since they experience a flexible and lax work schedule, they work more efficient
and effective in the organization which avoids employee and labour
turnovers.Employees in Germany are contented with their work schedules, they have
more than enough time to spare with their families and loved ones. It could be observed
that they have full knowledge and experience regarding their work because of the 2-3
year training they offer.Its only disadvantage is having no overtime pay due to their
prohibition of overtime work.

WASHINGTON, USA
ADVANTAGES DISADVANTAGES
With overtime pay With overtime
Stressful work schedule
Inefficient training for new employees (2-3
days)
High labor turnover per year (40%)

Insufficient leisure and family time

Without vacation time
Employees are only financially motivated
Seek for a second job
Must go to work 2hrs before opening time

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 On the other hand, with USAs work culture, there are a lot of disadvantages working in
the USA. It clearly shows that employees are not performing well in their jobs because of
stressful work schedules and insufficient leisure time. The 40% employee turnover is
reasonable because of their hectic schedule. USAemployees seek for a second job
because most of them are not contented for what they have achieved. Employees tend
to work even during free time, they even have to go to work 2 hours before it opens.
Since USA employees are motivated due to financial needs for their families, overtime
pays are given to them.

3. If you were the top operation executive for an international department store chain with
stores in both Germany and the US, what basic issues would you need to address
regarding policies for your employees?

Top operations executive of an international department store chain should adopt the
following human resource policies:

3.1 Quality of Work Life

Foster quality of work life through achieving physical, psychological
and emotional requirements.
Designing work rewards accompanied with respect to employees
individual needs and differences in both countries
Provide vacation rests for both countries.
Give the right for the employees to decide when they would like to
work overtime.
The employers should practice the OSHA for a better work
environment to have great work performance.

3.2 Work Rules

Design job classifications and work rules accompanied with respect to
employees individual needs and differences
Design flexible work rules to minimize high turnover rate
Have a research team study the working behaviour in both countries
and tell them to make the rules based on their findings.

3.3 Work Trainings

Provide rigorous training to improve job identity, job significance and
autonomy of employees contributions to an organization.
Provide apprenticeship trainings
Provide training pays for them to be motivated to learn.

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 3.4 Work Motivation
Motivating employees with monetary and non-monetary rewards.
Add rewards like Employee of the Month for hardworking and
deserving employees.
Provide bonuses during the year end.
Strong relationship among co-workers to help motivate each other.

3.5 Work Schedules

Granting autonomy to employee in relation to work schedules
Employ concrete assessments of employees efficiency in order to
save time for leisure and personal activities
As much as possible, eliminate overtime work
Arrive only minutes before the opening time
Prohibit working during free time

4. Under which system would you prefer to work?

Criteria Weight Germany (score) Usa (score)

Quality of work life .3 5 2
Work Rules .2 4 1
Work Trainings .2 5 1
Work Motivation .3 4 3
Work Schedules .2 4 2

1.6

1.4

1.2

1
GERMANY
0.8
USA
0.6
EFFECTIVE SCORE
0.4

0.2

0
Quality of work Work Rules Work Trainings Work Work
life Motivation Schedules

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 Working in Germany is more preferable than working in the US. From the tables shown
at the previous page, German companies exceed USA companies in all five categories.
Employees in Germany enjoy motivating rewards, have a better quality of work life, better
trainings, effective work rules and has flexible work schedules compared to the US.

German companies also have high regard for vacation time and allot 6 weeks of
vacation time annually for every employee. They also value family and leisure time for every
employee that is why they dont allow employees to work during weekends, evening shifts and
overtime. With flexible work schedules, German employees dont compensate on work
performance, instead they perform better than employees in the US and they dont exhibit a
high turnover rate. They give importance to Job trainings and allot a minimum of 2 years
apprenticeship for every newly hired employee. This would allow mastery in Job and autonomy
in the workplace.

Alternatives

Disadvantages (USA) Weight Comulative %

Stressful work schedule 15 15 37.5
Overtime 10 25 62.5
Inefficient training for new employees 8 33 82.5
No vacation 5 38 95
Employees are only financially movitvated 2 40 100

16 100

14 90
80
12
70
10 60
8 50

6 40
30
4
20
2 10
0 0
Stressful work Overtime Inefficient No vacation Employees are
schedule training for new only financially
employees movitvated

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The researchers weighted all the disadvantages of working in the USA and presented the data
in a Pareto chart. From the chart above, 80% of the disadvantages that affects work
performance include stressful work schedule, overtime and inefficient trainings for new
employees. Improving these categories will help make USA employee performance better.

Stressful work schedule

Improve work schedules for employees by allowing flexible working

hours
Grant employees autonomy in relation with work schedules
Granting autonomy to employee in relation to work schedules.
Do not allow working during free time
Improve work schedule rules

Overtime

As much as possible, eliminate overtime work.

Prohibit working hours before opening time
Practice better time management with supervisors so as to minimize
working overtime

Inefficient training for new employees

Give more importance to trainings before the job and during the job
Implement the necessary training to improve job identity, job
significance and autonomy of employees contributions to an
organization
no shortcuts in training
Provide apprenticeship trainings and increase training period for every
newly hired employee
Provide training pays for them to be motivated to learn.
Assess and evaluate employee performance

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 III. Conclusions

It can be concluded that work cultures could clearly affect work performances. An
ideal work culture must involve proper etiquettes, guidelines and rules for it to develop and
grow. This includes proper scheduling, generous allocation of leisure time, the avoidance of
overtime work, trainings, and a guaranteed vacation leave and good benefits and rewards. With
all of these factors, there is no doubt that any company wouldnt perform well.

Working more does not necessarily mean that a company is performing better.
An example of which is the German employees who produce more but work less because they
practice good quality of work life. Germans work hard and play hard. Since the working day is
focused on delivering efficient productivity, the off hours are truly off hours. Because of the
focused atmosphere and formal environment of German businesses, employees dont
necessarily hang out together after work. Germans generally value a separation between
private life and working life.Work balance between personal life and life at work should be
practice in every organization. Having this sense of balance will improve satisfaction among
employees because they will feel that they are not overlooking other important matters in their
life outside of work. In comparison with the USA work cultures, they work more but there are
higher chances of employee turnovers. It can be concluded that several hours working may not
give you better work performancebut instead it could bring down the company to misery. It is
evident that the work cultures of different countries are partly unfair for the employees, knowing
that they receive slightly identical salaries. From the data gathered from this case study, it can
be concluded that Germany is a better place to work on more than working in the USA. If the
employee works stressfully with several overtimes, it could decrease productivity in work
(evident in the USA). However, if the worker has sufficient lax time and no overtime required,
the worker would love and enjoy his/her job (evident in Germany). With that, the worker would
meet the expected goals of the company.

When hard work is appropriately rewarded and duly recognized by the management,
employees will naturally feel valued by the organization for what they put in. Such mentality is
healthy for the organization because employees will be willing to go the extra mile without
worrying about not getting anything in return. This is because quality work life improves
employees efficiency and adds value to an organization. Employees are more interested to
perform their tasks efficiently when they are given some form of autonomy in choosing their
work schedules that requiring them to fix work schedules. They should always have sufficient
leisure time as much as they have time in focusing on their work. The employees should be
equally motivated by monetary return as well as intangible incentives such as time for leisure,
family and other activities not related to work. A balanced employee is a resilient and strong
feature of an organization.

Culture is an integral part of human socialization processes as it reflect the values,

visions, norms, languages, systems, symbols beliefs of a particular society. Work cultures
therefore exist where ever there are human associations and interactions working at its best;
providing well-though rules and ethics, time-scheduling, motivation, productivity and strong

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relationships among co-employees. This is the key to organizational performance and
effectiveness and the need to create a positive work not only to the company, but to the people.

IV. References

Bateman, T.S. and Snell, S.A, (1999) Management: Building Competitive

AdvantagemMcGraw-Hill, 3rd Edition

Daft, R, L. (2009), Organizational Culture, The west series in management, West

Pub. Co., cop, ISBBN 978-0-314-69645

Liitle, J.W and Parker, R. 2010. Management and work performance for an
organization
http://hr.uw.edu/ops/performance-management/work-performance-for-employees/

J.R Management Environmental Germany Association, 2007

http://www.immihelp.com/newcomer/work-culture-office-environment-usa.html

Karolinska Institute 2015. Evaluation Work Environment

http://www.hongkiat.com/blog/positive-working-environment/s

Von Bertalanffy, :. 1960. Principles and theory of management

workhttp://www.huffingtonpost.com/amol-sarva/why-germans-work-fewer-
ho_b_6172262.html

Natarajan et al (2010) Principles of Management, Tamilnadu Textbook Corporation

College Road, Chennai 6000 06
http://www.toolshero.com/management/14-principles-of-management/

Nicholas Mtetesha- Academie (2011) Infographic of the workplace

http://info.viventium.com/infographic-the-history-of-the-workforce-workplace-
culture?utm_campaign=Dare%20to%20Live%20Remarkably&utm_source=google&u
tm_medium=ppc

Stoner, J.A.F, Freeman R.E (1982) R.E Etiquette Rules Everyone Needs
http://www.businessinsider.com/work-etiquette-rules-everyone-needs-to-know-2014-
8

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 V. Appendices

RESEARCH GROUP IN ACTION

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