Evaluating ABB Group's Operational Management Practices

The research focuses on how ABB Group’s effective operational management practices contribute significantly to its global leadership in providing industrial robotics solutions. By implementing advanced automation systems and maintaining robust supply chain strategies, ABB ensures high-quality production processes that meet customer demands efficiently. The case study highlights the intrinsic link between strategic management practices such as operations, quality, and leadership with company productivity and profitability. It suggests that companies aiming for a competitive edge must adopt similar innovative management approaches to achieve market differentiation and sustained growth.

Managerial Skill Course

Contents
Introduction......................................................................................................................................3
Research Methods............................................................................................................................3
Background Information of the Company and its Management.....................................................3
Description of the Management practices and attributes that makes the Company Unique...........4
Summary of Findings......................................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Introduction
The growth and success of an organization depends largely on its effective management
practices and procedures. The management practices are referred to as approaches and
techniques that are used for improving the performance of a company such as manufacturing,
marketing, planning, leadership style, quality and technology. The management practices of an
organization play a significant role in its distinctive brand image in the marketplace and
providing it a competitive advantage (Shermon and Shermon, 2016). In this context, this report
has aimed in discussing the key aspects of the management practices and outcomes of a selected
company, that is, ABB Group. The report has discussed the company background, description of
its key management practices that is responsible for its distinctive image and brief summary of
all the findings gathered from the overall research. The report has specifically focused on the
industrial robots manufacturing practices of the company.
Research Methods
The present research has incorporated the use of qualitative research methodology. There
are varied qualitative sources used for gathering information about the management practices of
the selected company. The qualitative resources include annual reports of the company, online
websites and interviews from the management personnel and other academic sources such as
books and journals. The research has evaluated and analyzed the secondary resources mainly for
analyzing the research topic in detail. The secondary resources include the sources that already
contain the information about the research topic.
Background Information of the Company and its Management
The ABB Group is recognised as a Swiss multinational company that is headquartered in
the Switzerland and is mainly involved in development of high-technology products such as
robotics, power and electrical equipments. The company is recognised as a leader in the
technology and digital field that is providing innovative products across the segments of utilities,
industry, transportation and infrastructure. The company operates in about 100 countries and
provides employment to about 136,000 people. It is recognised as one of the largest engineering
companies across the world and is traded on the Swiss Exchange and New York Stock Exchange

(ABB Inc., 2016). The company has achieved a recognised brand image in the sectors of power
and automation technologies. The company has achieved a unique image in the marketplace of
providing innovative and digitalized equipments (Bélanger et al., 2000).
The company’s business operations are organized into four areas that are, electrification
products, robotics and motion, industrial automation and power grids. The electrification
products provide various digitalized electrical products such as switchgear, cabling, wiring
accessories and many others. The robotics and motion division produces industrial motor and
drives. The industrial automation division is concerned with designing of systems to optimize the
productivity of the industrial processes. At last, the power grid division is involved in providing
power and automation products and systems. The ABB group places special emphases on its
management practices and procedures as it is involved in carrying out of complex projects for
ensuring their successful completion. The management systems of the company such as quality,
operations, safety and environment are approved by the certification systems. This is done to
ensure the sustainable development of communities and ensuring the overall safety of workers at
the workplace. The sound management of the company has enabled it to create real business
value for the customers by providing them highly efficient digitalized products and services
(ABB Group: Annual Report, 2016).
Description of the Management practices and attributes that makes the
Company Unique
The ABB Group has achieved a unique place in the global marketplace through providing
distinctive products and services through the use of its effective management practices such as
operations, manufacturing, supply chain and human resources. The manufacturing practices of
the company are largely responsible for its global competitiveness around the world. The
company manufacturing operations of developing industrial robots has proved to be vitally
successful all over the world (Stennes, 2004). The company is recognised as a leader across the
world in the supply of industrial robots and has installed about 200,000 robots worldwide. The
ABB Robotics division of the company has achieved a distinctive brand image in the
marketplace through developing superior types of industrial robots. The company has

encompassed the use of automation systems in the manufacturing of industrial robots that has
helped it to achieve excellence in developing superior quality robots (ABB Inc., 2016).
The management of the company has divided the organizational structure of the company
into four divisional structures in order to provide better services to the customers. The ABB
Robotics is one of the main divisional units of the company that has attained a position of global
leadership through the use of effective strategic management practices. The company
management operations have effectively integrated the use of digital technology and automation
systems that has lead to the development of highly efficient technology products such as
robotics. The robotics designed and developed by the company are capable of solving the
business problems and therefore is largely in demand by the business customers. The highly
efficient manufacturing operations of the company have helped it to achieve a superior place in
the market as it provides technology innovative products and services to the customers. There is
high demand of products by the business companies that can help them to improve their
productivity within their constraints of resources. The robotics system developed by the
company has provided a digital solution to the businesses for resolving their problems (ABB
Group: Annual Report, 2016).
The developments of innovative products by the company are largely due to its
operational excellence. The ABB has developed an operational team that is highly skilled and
competent in developing the technology products. The ABB team has enabled the performance
improvements in the company through developing latest technology innovative products that are
in increasing demands by its customers. For example, the operational team of ABB Group has
identified the significant opportunities of saving energy and thus the company manufacturing
operations utilizes less energy (Bélanger et al., 2000). In this context, the interview held from the
employees and operational manager of the company has helped in gathering some information
about the management practices. The interview questions have helped in addressing the
following issues:
• techniques used by the management in manufacturing
• clear knowledge of the goals
• talent management and development

• motivational strategies used such as incentives and pay per performance measures by the
management
• monitoring operational team performance
It has been analyzed from the interviews responses that effective leadership practices
have contributed in the development of highly skilled and competent operational team. It can
also be supported from the literature review as per which the company follows and adopts a
decentralized structure that provides equal opportunity to all the employees to participate in the
decision-making process. As such, the employees are free to share their views and opinions that
helps in gathering more innovative ideas for the creation of technology intensive products and
services as per the customer needs and demands. This increases the motivational level of
employees and thus they actively involves in developing high quality products to achieve the
customer satisfaction. The business leadership is an important management practice that plays a
critical role in improving an organizational performance (Doing Business with ABB, 2017). It
can also be supported from the literature review as per which the good leadership of the
operations manager has enabled in aligning the company and the employees goals thus
developing a highly competent workforce team. The management integrates the use of practices
such as incentives and pay per performance for rewarding the high performance employees. The
management also continuously monitors the performance of the operational team in order to
identify the gap and develop strategies for overcoming it. The management is also actively
involved in providing continuous training session to the operational team for improving their
skills and capabilities. This is done for developing the talent of the employees so that they meet
the business expectations (Laasch and Conaway, 2014).
In addition to this, the automation system used in the operational activities of the
company has enabled it to achieve operational excellence. The use of automation systems has
enabled the company to perform effectively all the manufacturing operations such as welding,
material handling, assembly, painting, finishing, coating and packaging. The company has
developed about 50 automation centers in 53 countries that have improved the efficiency of the
manufacturing process such as product handling. This in turn enabled the company to design
technology innovative products within short span of time. The company has also incorporated

the use of techniques such as continuous process improvement, lean manufacturing, quality
management and sustainability in its operational processes (Ford, 2015).
The use of these techniques has also assisted the company in developing customized
products and services and achieving the satisfaction of the customers. The operational
management system of the company is also well integrated with other management system such
as safety and health at work. This promotes safety of employees at the workplace by proper
mitigation of the various hazards and implementing various controls ensures to prevent the
occurrence of occupational accidents. Thus, it can be said that effective operational practices of
the company has helped in developing highly efficient technology products such as industrial
robots. The development of such products has enabled the company to become a global leader in
the supply of robotics system (Pinto, 2017).
Summary of Findings
It can be summarized from the overall findings of the research that management practices
of an organization play a central role in improving its productivity and profitability. The research
has suggested that companies need to focus on their management practices for attaining a unique
image in the marketplace such as that done by the ABB Group. The group is recognised on a
global platform for providing innovative technological and digital solutions to the customers as
per their requirements. The ABB has succeeded in achieving a global position for the supply of
industrial robots due to its operational excellence. It can be stated on the basis of the information
gathered regarding the management practices of the company that its effective operational
practices are largely responsible for its growth and success (ABB Inc., 2016). The use of
effective leadership style by the operations manager has lead to the development of a qualified
workforce resulting in developing high quality products as per customer demands. The
automation systems use in the manufacturing process of the company has improved the
efficiency of its production processes. Therefore, it can be said that ABB Group manufacturing
practices are playing a major role in driving its growth and development (ABB Group: Annual
Report, 2016).
The key management practice analyzed in the overall research is operational management
of the company. The company also has effective supply chain management strategies that are a

part of its operational management which also has lead in developing high quality products and
services. The company has maintained a code of conduct with the suppliers in order to ensure
that it achieves high quality supplies of raw materials for developing quality products and
services. It is recommended to the company on the basis of overall research findings that it
should focus on improving its operational management practices for marinating its global leader
image of developing the best technology and digitalized products and services (Daft, 2015).
Conclusion
It has been inferred from the overall discussion held in the report that management
practices are the key tactics to improve the performance of a company. There is intrinsic link
between the management practice such as operations, marketing, leadership, quality and others
with the productivity and profitability of a company. The research paper has highlighted the role
of management practices and driving the performance of a company through illustrating the
example of ABB Group. The operational management practices of ABB Group have enabled it
to attain a position of global leader in developing the technology efficient products such as
industrial robots. Thus, the business companies need to implement highly efficient management
practices for improving the performance and achieving a distinctive image in the marketplace
thus attaining a competitive advantage.

References
ABB Group: Annual Report. 2016. Committed to unlocking value. [Online]. Available at:
http://search-ext.abb.com/library/Download.aspx?
DocumentID=9AKK107045A3962&LanguageCode=en&DocumentPartId=&Action=Launch
[Accessed on: 11 November 2017].
ABB Inc. 2016. [Online]. Available at:
https://www.robotics.org/company-profile-detail.cfm/Supplier/ABB-Inc/company/305 [Accessed
on: 11 November 2017].
Bélanger, J. et al. 2000. Being Local Worldwide: ABB and the Challenge of Global Management.
Cornell University Press.
Daft, R.L. 2015. Organization Theory and Design. Cengage Learning.
Doing Business with ABB. 2017. [Online]. Available at:
http://new.abb.com/about/supplying/doing-business-with-abb [Accessed on: 11 November
2017].
Ford, M. 2015. The Rise of the Robots: Technology and the Threat of Mass Unemployment.
Oneworld Publications.
Laasch, O. and Conaway, R. 2014. Principles of Responsible Management: Global
Sustainability, Responsibility, and Ethics. Cengage Learning.
Pinto, J.K. 2017. Operations Management: Managing Global Supply Chains. SAGE
Publications.
Shermon, G. and Shermon, A. 2016. Leadership Center - An Employee Experience. Lulu.com.
Stennes, B. 2004. Innovation: Case by Case. Resources Unlimited.