Question

Thinking of the Middle East, identify where you encounter products, services, or food items that should be relatively uniform and are based on standard inputs or costs. Identify the items, their standard components, and what the standards would probably be for each item.

For example, the standard direct materials for a hamburger at a fast food restaurant might include a bun, a hamburger patty, one teaspoon of ketchup, one teaspoon of mustard, two pickles and one piece of paper for wrapping. The standard direct labor input might be 30 seconds per hamburger.

Do you think it is beneficial for companies to assign standards, or does it create unreasonable pressure on employees to comply with the standards? What should managers do if they see that employees are not meeting the direct material or direct labor standards? What do you see as the pros and cons of having standards?

i need an elaborated answer please.

Answer 1

There are lot of markets in which uniform products are made such as the manufacturing market of groceries where standard amounts of inputs are used to prepare a products such as Coca Cola Baverage, Packed Eatables etc.

1. It may and may not be beneficial for a company to assign standards. Sometimes it may also create unreasonable pressure on employees to comply with the standards.

It may be beneficial as :

* Equitable treatment of employees because compensation is based on individual outputs.

* Goals and results are more closely aligned.

* Change in perspective from activities to results.

* Communication between employee and employer or head.

* Performance is seen as an ongoing process and not one time.

* Specificity in commitments and resources.

* Focuses on comparisons, direction and planning.

It may create pressure in following ways:

* Results are at a point of time and become obsolete quickly in this fast growing world.

* Sometimes Unrealistic expectations arise.

* Employee stress if standards are not met.

* Different employees have different level of performance.

* Old employees may be able to gel up well with the standards than new ones.

2.

If they see that employees are not meeting the direct material or direct labor standards :

* Find the root cause of problems.

* Training Sessions

* Personal talks with employees.

* Give creative and encouraging feedbacks

* Give motivating perks such as appraisal process or pay for performance.

3.

Pros:

* Optimum output

* Avoid of wastage

* Motivation of employees

* Long term view of the organisation

* ALigns performance to organisational goals

Cons:

* Unrealistic standards

* Demotivated workforce

* High Employee Turnover

* More stress to achieve standards