IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v45y1999i12p1664-1678.html
   My bibliography  Save this article

The Effects of Low Inventory on the Development of Productivity Norms

Author

Listed:
  • Kenneth L. Schultz

    (Kelley School of Business, Indiana University, 1309 E 10th Street, Bloomington, Indiana 47401)

  • David C. Juran

    (Columbia School of Business, 319 Uris Hall, 3022 Broadway, New York, New York 10027)

  • John W. Boudreau

    (Center for Advanced Human Resource Studies, Cornell University, Ithaca, New York 14853)

Abstract

Low inventory, a crucial part of just-in-time (JIT) manufacturing systems, enjoys increasing application worldwide, yet the behavioral effects of such systems remain largely unexplored. Operations research (OR) models of low-inventory systems typically use a simplifying assumption that processing times of individual workers are independent random variables. This leads to predictions that low-inventory systems will exhibit production interruptions leading to lower productivity. Yet empirical results suggest that low-inventory systems do not exhibit the predicted productivity losses. This paper develops a model integrating feedback, goal setting, group cohesiveness, task norms, and peer pressure to predict how individual behavior may adjust to alleviate production interruptions in low-inventory systems. In doing so we integrate previous research on the development of task norms. Operations research models are used to show how norms can significantly improve throughput by decreasing variance and increasing the speed of the slowest workers, even if accompanied by decreases in speed of the fastest workers. Findings suggest that low-inventory systems induce individual and group responses that cause behavioral changes that mitigate production interruptions.

Suggested Citation

  • Kenneth L. Schultz & David C. Juran & John W. Boudreau, 1999. "The Effects of Low Inventory on the Development of Productivity Norms," Management Science, INFORMS, vol. 45(12), pages 1664-1678, December.
    • Handle: RePEc:inm:ormnsc:v:45:y:1999:i:12:p:1664-1678
    DOI: 10.1287/mnsc.45.12.1664
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.45.12.1664
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.45.12.1664?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Daniel G. Hansen, 1997. "Worker Performance and Group Incentives: A Case Study," ILR Review, Cornell University, ILR School, vol. 51(1), pages 37-49, October.
    2. Kenneth L. Schultz & David C. Juran & John W. Boudreau & John O. McClain & L. Joseph Thomas, 1998. "Modeling and Worker Motivation in JIT Production Systems," Management Science, INFORMS, vol. 44(12-Part-1), pages 1595-1607, December.
    3. Latham, Gary P. & Locke, Edwin A., 1991. "Self-regulation through goal setting," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 212-247, December.
    4. Earley, P. Christopher & Kanfer, Ruth, 1985. "The influence of component participation and role models on goal acceptance, goal satisfaction, and performance," Organizational Behavior and Human Decision Processes, Elsevier, vol. 36(3), pages 378-390, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Masha Shunko & Julie Niederhoff & Yaroslav Rosokha, 2018. "Humans Are Not Machines: The Behavioral Impact of Queueing Design on Service Time," Management Science, INFORMS, vol. 64(1), pages 453-473, January.
    2. Onay, Anita & Stampfer, Christina & Missbauer, Hubert, 2023. "A behavioral perspective on workload control concepts: The influence of order release on operators’ reaction behavior," International Journal of Production Economics, Elsevier, vol. 264(C).
    3. Kanfer, Ruth & Chen, Gilad, 2016. "Motivation in organizational behavior: History, advances and prospects," Organizational Behavior and Human Decision Processes, Elsevier, vol. 136(C), pages 6-19.
    4. Stephen G. Powell & Kenneth L. Schultz, 2004. "Throughput in Serial Lines with State-Dependent Behavior," Management Science, INFORMS, vol. 50(8), pages 1095-1105, August.
    5. Mohamad Saifudin Mohamad Saleh & Ali Mehellou & Bahiyah Omar, 2023. "The Influence of Islamic Values on Sustainable Lifestyle: The Moderating Role of Opinion Leaders," Sustainability, MDPI, vol. 15(11), pages 1-20, May.
    6. Mirko Kremer & Francis de Véricourt, 2022. "Mismanaging diagnostic accuracy under congestion," ESMT Research Working Papers ESMT-22-01, ESMT European School of Management and Technology.
    7. Kenju Kamei & Thomas Markussen, 2023. "Free Riding and Workplace Democracy—Heterogeneous Task Preferences and Sorting," Management Science, INFORMS, vol. 69(7), pages 3884-3904, July.
    8. Lorko, Matej & Servátka, Maroš & Zhang, Le, 2023. "Hidden inefficiency: Strategic inflation of project schedules," Journal of Economic Behavior & Organization, Elsevier, vol. 206(C), pages 313-326.
    9. Inje Cho & Kyriaki Kaplanidou & Shintaro Sato, 2021. "Gamified Wearable Fitness Tracker for Physical Activity: A Comprehensive Literature Review," Sustainability, MDPI, vol. 13(13), pages 1-15, June.
    10. Flourensia Sapty Rahayu & Lukito Edi Nugroho & Ridi Ferdiana & Djoko Budiyanto Setyohadi, 2022. "Motivation and Engagement of Final-Year Students When Using E-learning: A Qualitative Study of Gamification in Pandemic Situation," Sustainability, MDPI, vol. 14(14), pages 1-22, July.
    11. Joseph Blasi & Richard Freeman & Douglas Kruse, 2016. "Do Broad-based Employee Ownership, Profit Sharing and Stock Options Help the Best Firms Do Even Better?," British Journal of Industrial Relations, London School of Economics, vol. 54(1), pages 55-82, March.
    12. Hsiaw, Alice, 2013. "Goal-setting and self-control," Journal of Economic Theory, Elsevier, vol. 148(2), pages 601-626.
    13. Uwe Jirjahn & Kornelius Kraft, 2010. "Teamwork And Intra‐Firm Wage Dispersion Among Blue‐Collar Workers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(4), pages 404-429, September.
    14. Karen Donohue & Özalp Özer, 2020. "Behavioral Operations: Past, Present, and Future," Manufacturing & Service Operations Management, INFORMS, vol. 22(1), pages 191-202, January.
    15. Nace Magner & Robert Welker & Terry Campbell, 1996. "Testing a Model of Cognitive Budgetary Participation Processes in a Latent Variable Structural Equations Framework," Accounting and Business Research, Taylor & Francis Journals, vol. 27(1), pages 41-50.
    16. Gutt, Dominik & von Rechenberg, Tobias & Kundisch, Dennis, 2020. "Goal achievement, subsequent user effort and the moderating role of goal difficulty," Journal of Business Research, Elsevier, vol. 106(C), pages 277-287.
    17. Arndt, Philipp, 2020. "Individual motivation factors in agile teams," Journal of Applied Leadership and Management, Hochschule Kempten - University of Applied Sciences, Professional School of Business & Technology, vol. 8, pages 54-71.
    18. Brice Corgnet, 2018. "Rac(g)e Against the Machine? Social Incentives When Humans Meet Robots," Post-Print halshs-01984467, HAL.
    19. Tobias Mutter & Dennis Kundisch, 2014. "Goals as Reference Points: Empirical Evidence from a Virtual Reward System," Working Papers Dissertations 19, Paderborn University, Faculty of Business Administration and Economics.
    20. Robert J. Batt & Christian Terwiesch, 2017. "Early Task Initiation and Other Load-Adaptive Mechanisms in the Emergency Department," Management Science, INFORMS, vol. 63(11), pages 3531-3551, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:45:y:1999:i:12:p:1664-1678. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.