Share:


Management approaches for Industry 4.0 – the organizational culture perspective

    Hana Mohelska   Affiliation
    ; Marcela Sokolova   Affiliation

Abstract

The Industry 4.0 concept describes a decentralized production chain that extends from design to the supply chain, production, distribution as well as customer service. Cyber Physical Systems (CPS) employ software and internet-connected machines that communicate in real-time to reduce error rates and increase efficiency. The basis is the co-operation of separate control units that are capable of autonomous decision-making, managing the assigned technological unit and in particular becoming an independent and full member of comprehensive production units. The Industry 4.0 concept requires continuous innovation and education that not only depends on the peoples’ skills but also on organizational culture. Appropriate managerial approaches play a vital role in the development of organizational culture. Most studies discuss technical aspects, but do not pay attention to managerial approaches and organizational culture, which are a major factor influencing the success of this concept. The aim of the paper is to examine the level of organizational culture in the Czech Republic and to seek appropriate managerial approaches for the development of organizational culture that can support the environment for innovation in the organization and therefore facilitate the entrepreneurship in the Industry 4.0 concept. A partial goal will be, among other things, to identify the implications of Industry 4.0 for human resources. In order to determine organizational culture in organizations, a large study was carried out in the form of a questionnaire survey − the Czech translation of Wallach᾽s Questionnaire (1983). According to the findings, the respondents perceive the organizational culture in the organizations under review is more bureaucratic and supportive than innovative. In their view the signs of innovative culture are not so striking. It is necessary to change managerial approaches to support innovative solutions.

Keyword : Industry 4.0, organizational culture, managerial approaches, industrial revolution, Czech Republic, bureaucratic culture, innovative culture

How to Cite
Mohelska, H., & Sokolova, M. (2018). Management approaches for Industry 4.0 – the organizational culture perspective. Technological and Economic Development of Economy, 24(6), 2225-2240. https://doi.org/10.3846/tede.2018.6397
Published in Issue
Nov 21, 2018
Abstract Views
5
PDF Downloads
7
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Armstrong, M. (2006). A handbook of human resource management practice (10th ed). London, Philadelphia: Kogan Page.

Arnold, C., Kiel, D., & Voigt, K. I. (2016). How the industrial internet of things changes business models in diferent manufacturing industries. International Journal of Innovation Management, 20(08), 1640015. https://doi.org/10.1142/S1363919616400156

Basl, J. (2017). Pilot study of readiness of Czech companies to implement the principles of Industry 4.0. Management and Production Engineering Review, 8(2). https://doi.org/10.1515/mper-2017-0012

Bauer, W., Schlund, S., Marrenbach, D., & Ganschar, O. (2014). Industry 4.0 – Volkswirtschaftliches Potenzial für Deutschland. BITKOM, Berlin.

Brettel, M., Friederichsen, N., Keller, M., & Rosenberg, M. (2014). How virtualization, decentralization and network building change the manufacturing landscape: an Industry 4.0 perspective. International Journal of Mechanical, Aerospace, Industrial and Mechatronics Engineering, 8(1), 37-44.

Cabello-Medina, C., López-Cabrales, Á., & Valle-Cabrera, R. (2011). Leveraging the innovative performance of human capital through HRM and social capital in Spanish firms. The International Journal of Human Resource Management, 22(4), 807-828. https://doi.org/10.1080/09585192.2011.555125

Çekmecelioğlu, H. G., & Günsel, A. (2013). The effects of individual creativity and organizational climate on firm innovativeness. Procedia - Social and Behavioral Sciences, 99, 257-264. https://doi.org/10.1016/j.sbspro.2013.10.493

Dubkevics, L., & Barbars, A. (2010). The role of organisational culture in human resource management. Human Resources Management & Ergonomics, IV(1), 1-10.

Ebersberger, B., & Lööf, H. (2004). Multinational enterprises, spillovers, innovation and productivity. Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies. Retrieved from https://ideas.repec.org/p/hhs/cesisp/0022.html

Griffith, R., Huergo, E., Mairesse, J., & Peters, B. (2006). Innovation and productivity across four European countries. Oxford Review of Economic Policy, 22(4), 483-498. https://doi.org/10.1093/oxrep/grj028

Handoko, Y., Setiawan, M., & Surachman, D. (2011). Organizational Culture, Job Satisfaction, Organizational Commitment, the Effect on Lecturer Performance. International Journal of Business and Management Invention, 2(12), 21-30.

Háša, S., & Brunet-Thornton, R. (Eds.). (2017). Impact of organizational trauma on workplace behavior and performance. IGI Global Disseminator of Knowledge. https://doi.org/10.4018/978-1-5225-2021-4

Hecklau, F., Galeitzke, M., Flachs, S., & Kohl, H. (2016). Holistic Approach for Human Resource Management in Industry 4.0. Procedia CIRP, 54, 1-6. https://doi.org/10.1016/j.procir.2016.05.102

Kagermann, H., Wahlster, W., & Helbig, J. (2013). Recommendations for implementing the strategic initiative INDUSTRY 4.0. National Academy of Science and Engineering, Berlin/Frankfurt.

Lööf, H., & Heshmati, A. (2006). On the relationship between innovation and performance: A sensitivity analysis. Economics of Innovation and New Technology, 15(4-5), 317-344. https://doi.org/10.1080/10438590500512810

Masso, J., & Vahter, P. (2008). Technological innovation and productivity in late-transition Estonia: econometric evidence from innovation surveys (Working Paper No. 61-2008). The University of Tartu Faculty of Economics and Business Administration. https://doi.org/10.2139/ssrn.1126281

McClelland, D. C. (1967). The achieving society by David C. McClelland. Free Press.

Mohelska, H., & Sokolova, M. (2016). Smart, connected products change a company’s business strategy orientation. Applied Economics, 48(47), 4502-4509. https://doi.org/10.1080/00036846.2016.1158924

Mustafa Elqadri, Z., & Priyono, D. (2015). The influence of organizational culture, organizational climate, and the promotion of the position of employee job satisfaction in PT. Surabaya Graphics Media Temprina. Asian Social Science, 11(22), 139-148. https://doi.org/10.5539/ass.v11n22p139

Osborne, S. P., & Brown, K. (2005). Managing change and innovation in public service organizations (1st ed). London, New York: Routledge. https://doi.org/10.4324/9780203391129

Pagáč, M. (2015). What does the fourth industrial revolution mean? Retrieved from https://www.konstrukter.cz/2015/10/29/co-znamena-ctvrta-prumyslova-revoluce/

Polder, M., & Veldhuizen, E. (2012). Innovation and competition in the Netherlands: testing the inverted-U for industries and firms. Journal of Industry, Competition and Trade, 12(1), 67-91. https://doi.org/10.1007/s10842-011-0120-7

Prause, G., & Atari, S. (2017). On sustainable production networks for Industry 4.0. Entrepreneurship and Sustainability Issues, 4(4), 421-431. https://doi.org/10.9770/jesi.2017.4.4(2)

Qin, J., Liu, Y., & Grosvenor, R. (2016). A categorical framework of manufacturing for Industry 4.0 and beyond. Procedia CIRP, 52, 173-178. https://doi.org/10.1016/j.procir.2016.08.005

Rennung, F., Luminosu, C. T., & Draghici, A. (2016). Service provision in the framework of Industry 4.0. Procedia - Social and Behavioral Sciences, 221, 372-377. https://doi.org/10.1016/j.sbspro.2016.05.127

Renyowijoyo, M. (2003). The relationship between organizational culture, organizational commitment, job satisfaction and employee performance: empirical study employee manufacturing sector in Indonesia (Doctoral dissertation). Universiti Utara Malaysia.

Schein, E. H. (2004). Organizational culture and leadership (3rd ed). San Francisco: Jossey-Bass.

Schneider, S., & Spieth, P. (2013). Business model innovation: towards an integrated future research agenda. International Journal of Innovation Management, 17(01), 1340001. https://doi.org/10.1142/S136391961340001X

Sokolová, M., Mohelská, H., & Zubr, V. (2016). Pay and offer of benefits as significant determinants of job satisfaction – a case study in the Czech Republic. E+M Ekonomie a Management, 19(1), 108-120. https://doi.org/10.15240/tul/001/2016-1-008

Souitaris, V. (2002). Firm-specific competencies determining technological innovation: A survey in Greece. R & D Management, 32(1), 61-77. https://doi.org/10.1111/1467-9310.00239

Voigt, K. I., Buliga, O., & Michl, K. (2017). Business model pioneers: how innovators successfully implement new business models. Cham: Springer. https://doi.org/10.1007/978-3-319-38845-8

Vokoun, M. (Ed.). (2016). Analysis of innovation activities of enterprises (1. vydání). Praha: Setoutbooks.cz.

Wallach, E. J. (1983). Individuals and organizations: The cultural match. Training and Development Journal, 12, 28-36.

Widyarini, M. M. N. (2009). Popular psychology series: keys to self development. Jakarta: PT Elex Media Komputindo.

Zemplinerová, A., & Hromádková, E. (2012). Determinants of firm᾽s innovation. Prague Economic Papers, 21(4), 487-503. https://doi.org/10.18267/j.pep.436

Žižlavský, O. (2013). Past, present and future of the innovation process. International Journal of Engineering Business Management, 5(47), 1-8. https://doi.org/10.5772/56920

Žižlavský, O. (2016). Innovation scorecard: conceptual performance measurement and management framework for innovation process. Journal of Global Business & Technology, 12(2), 10-27.