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Cima Essay

9239 words - 37 pages

ANZAM 2009

Manager’s Degree of JIT Involvement, Locus of Control and Managerial Performance

Journal: Manuscript ID: Manuscript Type:

23rd Annual Australian and New Zealand Academy of Management Conference draft Paper just-in-time < 15. Technology, Innovation and Supply Chain Management, manufacturing technology < 15. Technology, Innovation and Supply Chain Management, operations management < 15. Technology, Innovation and Supply Chain Management, performance measurement < 15. Technology, Innovation and Supply Chain Management

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ANZAM 2009

Manager’s Degree of JIT ...view middle of the document...

The apparent benefits of JIT stem from the reduction/elimination of many non-value adding activities. However the adoption of JIT does not automatically increase profits due to the direct and indirect costs associated with implementation (Balakrishnan et al. 1996). Groebner & Merz (1994, p.26) asserted, ‘as with any new management process, JIT’s effectiveness is dependent on how the technique is implemented’.

Previous research analysing the impact of JIT on performance is equivocal, with some researchers reporting performance improvements with the implementation of JIT systems (Flynn et al. 1995; Callen et al. 2000) and others finding no improvements (Balakrishnan et al. 1996; Kendall & Steen 1998; Clarke & Mia 1993). Several researchers have demonstrated that contingency variables play an important role in determining the success or otherwise of the JIT philosophy. This research has shown that organisational variables such as structure and culture (Sohal et al. 1993; Selto et al. 1995; Kalagnanam & Lindsay 1998), infrastructure (Flynn et al., 1995), intensity of market competition (Chong & Rundas 1999), and performance-related information (Mia 2000) are important variables in determining the successful adoption of JIT.

However, little attention has been placed on examining individual behavioural considerations within a JIT environment. This is surprising given the significant changes the JIT approach creates in the work place (Peters & Austin 1995). The introduction of JIT can induce job-related stress, which can have a detrimental effect on individual performance in terms of long-term productivity, work quality and decision making (Inman & Brandon 1992; Peters & Austin 1995; Godard 2001).

ANZAM 2009

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The need to go beyond the technical and uncover the behavioural aspects of JIT adoption was recognised by Power & Sohal (2000b p.933) who noted the importance of balancing ‘people involvement’ against an understanding of what this change in involvement means to the individuals concerned and the organisation itself. The consequence of a lean production system under JIT makes employee involvement and behaviour management crucial, as exposed inefficiencies and problems need to be corrected to ensure customer orders are delivered on time. Indeed, Godard (2001) asserted that the benefits of higher empowerment, task involvement and belongingness may be diminished due to workers being overwhelmed and becoming stressed. Watson & Baumal (1967) argue that individuals will perform better in situations where actual environmental locus of control and the individual’s preferred locus of control are congruent. The inherent differences in control within a JIT and non-JIT system have implications for the involvement and behaviour management of all staff. The purpose of this study is to examine the interaction between degree of JIT involvement and locus of control affecting managerial performance. Empirical evidence is presented which...

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