Executive management for innovation in waste treatment engineering company
Introduction
This paper presents the results of the waste management research in a selected engineering company
RIBE Slovakia, k. s., Nitra factory. Within of its manufacturing programme, the mentioned factory uses
wide range of the manufacturing technologies (cutting operations, metal cold-forming, thread rolling,
metal surface finishing, automatic sorting, metrology, assembly), with the aim to produce the final
products – connecting components (fasteners) delivered to many industrial fields (agricultural
machinery manufacturers, car industry, etc.). There were obtained data characterizing production
technologies and the range of manufactured products. Within the Slovak Republic, the engineering
production significantly contributes to increasing of the gross domestic product. Considering the
development of the engineering production in the Slovak Republic, an attention will be paid also to the
impacts of industrial engineering production on environment. It is especially important, because the
industrial engineering production leads to production of various kinds of waste with a negative impact
on the environment. According to Paulová (2009), in order to reduce industrial waste production,
attention must be paid to the product quality. The product quality depends on quality of manufacturing
process. Butner et al. (2008) state that individual manufacturing companies should focus on timely
investment in implementation of environmentally friendly technologies. Innovation is required for this
purpose. The innovation process has a considerable rate of failure, from 40% to 80%, depending on the
experts consulted. This paper developed a quality management approach, to help Executive
Management Teams to handle the innovation process in a better way, based on the problem-solving
procedure and the application of quality tools and techniques. It includes three major phases: ‘External
Environment Investigation’, ‘Strategic Decision Making’, ‘Innovation Project Execution’, and a series of
steps are arranged to span across the approach in each phase.
The key attention is paid to the classification of waste produced by engineering production and to
waste management within the company. Within the research, there were obtained data characterizing
the time course of production of various waste types and these data were evaluated by means of
statistical method using STATGRAPHICS. Based on the application of SWOT analysis, there is objectively
assessed the waste management in the company in terms of strengths and weaknesses, as well as
determination of the opportunities and potential threats. Results obtained by the SWOT analysis
application have allowed to come to conclusion that the company RIBE Slovakia, k. s., Nitra factory has
well organized waste management system. The fact that the waste management system is incorporated
into the company management system can be considered as an advantage.
Management functions
Planning
Aims
The automobile industry contains within it many operations that often, by themselves, constitute
complete businesses. For example, many automobile manufacturers have their own stamping, casting,
metal finishing, and electropla ting divisions, and a large number of smaller enterprises centre around
the cas ting or forming, finishing and electroplating, anodizing, or painting of parts, such as bumpers,
door handles, grills and moldings. Wastewater from this industry is one of the major sources of heavy
metals, cya nide, oil & grease, organic and inorganic pollutants which contribute greatly to the pollution
load of receiving water bodies and it is particulary import ant for stream pollution. The main objective of
this study is the introduction of new processes for the management of wastewater discharged from this
industrial complex.
Strategies
Following steps will be carried out to introduce the innovation

Determination of strategic approach
Business model will be used as strategic approach. The business model of this company can be described
as articulating three interrelated value creating activities
First, we have a public service mission to organize a cocreation of value (Lusch et al., 2008; Ramirez
1999) between authorities who are legally responsible to manage waste and those in need of getting rid
of waste while also protecting public health and the environment for future generations.
• Second, they have developed processing activities that not only organize the disposal of waste in a
safe, economically efficient and environmentally sustainable way, but also transform as much waste as
possible into materials and/or products with a potential economic and environmental value.

Third, we organize marketing activities that invent ways to insert the output of their processing
activities into the circuit. of production and consumption, thereby realizing the economic value
potential of this output

Understanding the market
The second step in the strategy choice cascade is defining the right playing field,
as in, the market are operating in and the customer segment we are offering
value for. It will be important to determine the size of customers for the
environment friendly innovation in this company.
To be able to innovate and to respond to the customers’ needs, the company
should listen and understand what its customers really want and remove the rest.
To be able to do that, knowing what happens in the market is essential.
However, because competitive needs are individual and often very specific, a
strategy that worked for another player in your field shouldn’t be copied but
learned from. Although defining their playing field is important, their unique value
proposition is what will make or break their innovation strategy.
 Assess and Develop Your Core Capabilities
When assessing their set of capabilities that need to be in place, it is important to
consider the following:





Culture
Behaviors
Values
Knowledge
Skills
The staff must have internal skills and knowledge to be able to build the
innovation. The ability to connect and develop these capabilities is key to
innovation.

Establishment of innovation techniques
After acquiring the required skill set and staff, the company will introduce the following waste treatment
process.
The waste will treated by alkaline chlorination. The destruction of cyanide will be obtained in two steps.
First, cyanide will be changed to cyanate (NaCNO) at pH 8.5-9 or more to enhance the reaction. This
reaction will require 3 0 minutes for 100% completion. This is usually followed by chlorination at pH
around 8.5 to convert the cya nate to nitrogen and carbon dioxide gases. This reaction will require one
hour and half to be completed. Complete destruction of cyanate will be carr ied out by careful reduction
of the pH-value of previous samples in Step (1) to pH 6.5 in presence of chlorine. The time required for
this reaction was only half hr.
Treatment of final effluent from this company will be carried out as
Wastewater from the end-of-pipe line of the whole industrial complex will be sub jected to two
treatment techniques namely, chemical coagulation-sedimentation and biological treatment. Chemical
coagulation-sedimentation at its optimum operating conditions using lime, and alum will be carried out
using Jar test pro cedures .
Leading
The executive officer of the company, for the sake of innovation, will have to take a hard look at
the company’s structure and culture and decide if those are helping or hurting the mission. He
will be lead the company by following the steps given below:
1. Open the lines of communication.
This means speaking to your employees rather than at them or over their heads. The leader
will take the time to open the floor to input from those impacted by your decisions. He or she
will create convenient, safe ways for employees to voice concerns and raise valid objections
to workplace issues.
2. Create a team to serve as your eyes and ears.
The executive officer fear is ingrained in many people, and that means that many employees
are going to clam up when he enters the room. It is important to turn to coworkers and
friendly managers or supervisors with ideas rather than dropping them in your inbox directly.
3. Stay open to all ideas, even if they threaten the status quo.
It’s one thing to talk about encouraging new ideas and innovation, and quite another to
actually do it. If an employee questions the effectiveness of the way things currently operate
in your company, the leader
can’t simply say “That’s just the way things are.” It may be, but it may not have to be. Does
a certain policy inhibit efficiency or change? Are certain power structures crushing creativity?
What if an idea demands radical change that is uncomfortable in the short term but
revolutionary to your profitability in the future? It can happen, so stay open.
4. Look your critical eye in the mirror.
Even the innovative CEO must evaluate employee performance and make criticisms at times,
but leader should also turn that critical inspection on their own performance. It is important
for executives to Understand their natural leadership style, and push themself to create
strengths out of their weaknesses. Just as their employees learn from failure, recognize their
own failures and use them as growth opportunities.
SWOT analysis
Using the data on amount and classification of the waste generation provided by RIGeneral
motorscompany, an analysis for certain time period (2010–2015) was performed. The data
necessary for analysis of an operation of waste management system were provided by
environmental management unit of General motor company.
Total breakdown of dangerous waste production during monitored period
no.
type of waste
amount of waste, kg
year 2010 year 2011 year 2012 year 2013 year 2014 year 2015
1
used printer cartridges
20
–
–
50
–
–
2
acidic bating liquors
–
–
–
940
–
130
3
alkali bating liquors
3200
2260
3270
1170
1200
210
4
sludge from phosphating treatment
–
–
–
340
–
220
5
cutting emulsions
36190
43950
38740
35660
54380
45600
6
non-chlorate mineral lubricating oils
13740
12040
7840
7860
5390
–
7
other solvents and solvent mixtures
140
60
160
120
130
90
10
50
90
30
30
–
packs with rests of dangerous materials
8
9
cleaning rag absorbents
6490
8990
9240
10150
10990
14730
10
rejected equipment containing
dangerous parts
30
150
20
10
–
–
11
rejected chemicals
830
1990
–
870
670
–
12
lead batteries
40
–
130
10
740
–
13
sludge with dangerous substances
from other industrial water treatment
processes
3730
5190
5390
4210
4850
4080
74680
64880
61420
78380
65060
–
–
total
ANOVA Table
variability
Sum of squares
degrees of freedom
mean squares
testing characteristics
P-value
a: name of waste
0.134478
2
0.0672389
0.98
0.4075
B: year
1.15698
5
0.231396
3.38
0.0477
residual
0.683856
10
0.0683856
total
1.97531
17

Analysis of company performance
It was proposed that there are three latent variables in the model Fig 2. We used five manifested
indicators to measure the leading factor. It was operationalised using five indicators: perceived level
of culture of adopting worldclass practices (ex: JIT, Six Sigma, Supplier Management, Total
Productive Maintenance); perceived level of benchmarking one practices and standards against the
best competitors; frequency of company’s visit to admired companies to learn new ideas and
approach; degree of striving to obtain national quality awards; and level of a sound quality
management system to ensure the quality of products. Next, planning, as the second latent
construct was measured by five related items. The third latent variable is company performance,
which is split into two measures: financial soundness, and profit. Due to the difficulty in gathering
absolute data on firms’ performance, the indicators used are what the respondents perceived of
their company’s profit performance and financial soundness.. In summing up the research model, it
was proposed that a higher degree of transformational leadership style will lead to higher company
performance. Since planning had become a strategic tool for managing change and
competitiveness, planning was hypothesised as the mediating variable, which would indirectly
affect the company performance. We advanced our hypotheses in the following relational terms:
H1: Higher degree of transformational leadership mediated by planning has a positive structural
effect on company performance.
Through H1, we could test the direct effect of transformational leadership to the company
performance and the indirect effect of best practices management to the company performance. In
all, the total effect of transformational leadership could be summed up. We would also test the
goodness of fit of the overall model.
H0: The overall hypotheses model has a good fit.
Methodology
We conducted a cross-sectional mail survey by distributing 600 sets of questionnaires to the CEOs of
companies listed in the in different regions of this organization. The survey yielded 97 responses,
giving the response rate of almost 15%. In terms of informants, more than 60% of the respondent
hold managerial positions and above. The mean of their tenure with their companies is 8.34 and a
median value of 7 years with standard deviation 6.79. The companies’ mean of years in business is
25 years with the median value of 17 years and standard deviation 25 years. The mean, median and
standard deviation of the number of full time employees are 2317, 418, and 5565 respectively. The
test for reliability for each indicator to its respected construct results in a Cronbach alpha of more
than 0.70. The complete result of the reliability test is available upon request from the authors. A
LISREL model is used to confirm the structural relationship among factors. The structural equation
modelling is comparatively better than other multivariate analysis techniques, such as multiple
regression analysis, because it calculates errors of measurement in its analysis. Moreover, it is able
to do simultaneous modeling and analyse the relationship among the latent variables. Several
programs, such as LISREL by Joreskog & Sorbom (1989), EQS by Bentler (1985) or AMOS by Arbuckle
& Wothke (1989) could be used. However, in this study, we employed the AMOS version 3.6 to
analyse the data.
Results
The alternative hypothesis was supported. The prime results of structural analyses confirmed our
hypothesis that best practices mediated the relationship between transformational leadership and
firm performance. The model had a good of fit with a Chi square value of 57.72 with 47 degrees of
freedom and a p-value 0.136, which is considered acceptable. We strongly believe that best practice
management as a mediating variable will strongly enhance the company performance. As for the
planning construct, all indicators or variables posit a beta coefficient of 0.70 or higher. Both
indicators of company performance give a strong beta coefficient (0.870 and 0.901). we found that
the transformational type of leaders will give more impact to the company performance if best
planning takes place.
Analysis of company’s procedures against best practice
This relationship was studied by considering leading: transformational leadership style as
independent factor. On the other hand, company policies (work conduct policy, attendance and
time off policies) as dependent. An employee conduct policy establishes the duties and
responsibilities each employee must adhere to as a condition of employment. Conduct
policies are in place as a guideline for appropriate employee behavior, and they
outline things such as proper dress code, workplace safety procedures, harassment
policies and policies regarding computer and Internet usage. Such policies also outline
the procedures employers may utilize to discipline inappropriate behavior, including
warnings or employee termination.
Companies are increasingly paying attention to bullying behavior as a serious issue
and beginning to adopt policies in this area as well. Anti-bullying policies focus on
repeated hostile behaviors, identify reporting mechanisms and describe the
consequences for employees who engage in persistent bullying behavior.
Attendance policies set rules and guidelines surrounding employee adherence to work
schedules. Attendance policies define how employees may schedule time off or notify
superiors of an absence or late arrival. This policy also sets forth the consequences for
failing to adhere to a schedule. For example, employers may allow only a certain number
of absences within a specified time frame. The attendance policy discusses the
disciplinary action employees face if they miss more days than the company allows.


The policies were measured by estimating the employer’s performance in each type of
policy.
Hypothesis
There is significant relationship between transformational leadership and employee performance
for work conduct policy
There is significant relationship between transformational leadership and employee performance
for attendance and time off policies.
Descriptive correlation method was used in this research. Then the relation between dependent variable
and independent variable was examined and predict through correlation tests.
Sample size of 200 members was used. Data collection instruments included two questionnaires:
1
1
- The Leadership Style questionnaires: This questionnaire was composed of 38 questions that
were related to transformational leadership affecting the policies with respect to point view of
subordinates
- Employee performance Questionnaire: This questionnaire was composed of 40 questions that were
related to transformational leadership affecting the policies with respect to point view of executive
officers.
the Cronbach's Alpha was used. Cronbach's Alpha test results showed that the validity of the
questionnaire was 0/777 that indicates the high validity of the questionnaire.
Hypothesis
There is significant relationship between transformational leadership and employee performance for
work conduct policy
Comparison of the transformational leadership and employee performance for work conduct policy
Variables
Number
Average
Standard
deviation
correlation
coefficient
Level of
significance
(p)
employee
performance
277
81/72
0/169
0/783*
0/002
transformational
277
12/54
0/295
leadership
it can be concluded that this relationship is significantly positive. The more leaders use transformational
leadership style in their leadership, the more work conduct is increased.
Comparison of the transformational leadership and employee performance for attendance and time
off policies
Hypothesis
There is significant relationship between transformational leadership and employee performance for
attendance and time off policies.
Variables
Number
Average
Standard
deviation
correlation
coefficient
Level of
significance
(p)
employee
performance
277
81/72
9/36
-0/460*
0/007
laissez-faire
leadership
277
8/71
1/78
it can be concluded that this relationship is significantly negative. The transformational leadership style
greatly reduces the attendance and time off policies.
Recommendations
According to the findings, the following suggestions are offered:
1-Due to the impact of transformational leadership on policies, it is suggested that managers use a
strategy to employ it in the organization.
2- It is suggested that managers to be trained to use this styles of leadership and along with the
increasing need for new skills and competencies of leadership as a result of changes in community,
leadership training program is more important than ever. On the other hand, studies have shown that
training can lead to the strengthening of transformational leadership. So, organizations should pay
special attention to issues of education.
3-Since the planning and supervision is the action of performance, it is suggested to managers that to
proceed organizational purposes have a careful and calculated planning.
Strengths
Within the frame of this cooperation, the selected company has perfectly organized documentation of
environmental policy emphasizing the issues of waste management and packing. The measures to be
implemented in case of accident, such as waste management programme, identification sheets of
dangerous waste, are prepared and documents necessary for decision making process of state
administration are provided regularly. It can be clearly stated that operation of waste management
system in the selected company respects current legislation, including following legal documents: –





Rates for calculation of fees to be paid to the Recycling Fund, List of products, materials and
equipment which are subject of fees to be paid to the Recycling Fund
Execution of certain requirements of the Waste Act;
Waste Repositories;
Extended responsibility of manufacturers of reserved products and handling with reserved
flows of the waste;
revises and lists the programme documents of waste management system, defines measures
for prevention of waste production, defines rights and obligations of legal entities and natural
persons related to prevention of waste production, determines the terms of handling with
waste and it defines precisely the extended responsibility of manufacturers.
The strength of the company includes also the fact that there is overall opinion in the company that an
ability to satisfy the needs of the clients is not realized only by production or service provision, but also
by active interest in overall reproduction cycle of products.The product quality will include all factors
leading to the required results. It relates to the following attributes: – quality of product (tangible
product); – quality of service (intangible product); – quality of processes and sources (machines and
equipment, information, working environment); – quality of management system. In order to prove its
interest in client and demonstrate a high quality in field of manufacturing of connecting products,
Weaknesses
Resulting from detailed analysis of waste management conditions in selected engineering company, we
can state that overall company waste management system has no weaknesses in general. However, the
company was not doing the treatment of cyanide ions. Therefore, an innovative method was
introduced.
Opportunities
Due to its capabilities, arrangement, control method and overall focus of activity, the waste
management system in the engineering General Motors provides possibility to cope with increasing
amount of waste resulting from expansion of the engineering production in this company while
preserving the product assortment. It can lead to decrease in intervals between waste transports and
this issue should be solved by organizational measures.
Threats
Certain threats to the waste management system in the engineering company can be caused by quick
change in assortment of materials used for manufacturing of new product kinds, change or extension of
the manufacturing technologies, utilization of new types of cooling or lubricating oils etc. Taking into
account the above considerations, it should be emphasized that the selected company is a consolidated
company with stabilized park of manufacturing technologies. Based on these facts and considering given
conditions, it can be claimed that it is not probable that the waste management system of the selected
company would be jeopardized by certain external factors.
Conclusion
The technologies of engineering industry provide not only manufacturing of the engineering products.
Its technologies have significant impact on the environment. The increase in the industrial production
has a dominant impact on the environment. These impacts can not be neglected, since these
technologies have direct impact on the environment where the humans live and work. Based on
formulated objectives, our research is oriented on observation of impacts of engineering production on
the waste production, focusing on waste management system in the selected engineering company
General Motors. This company can be considered as up-to-date engineering company, focused on
manufacturing of metal products, metal processing, pressing, cutting and rolling of metals, milling
operation, turning operation and other metal processing works. However, an innovation is necessary for
the treatment of cyanide ions. The results of our research confirmed the significance of efficient waste
production reduction, because the waste production influences the company economic development.
Challenge
The company can face challenges of economical nature while implementing it.
COMPETENCIES and ELEMENTS OF COMPETENCies
We have encountered competency: Comprehensive, theory based understanding of the underpinning
natural and physical sciences and the engineering fundamentals applicable to the engineering discipline.
We have to chemistry for the treatment of water released from the firm.
We have also faced competency: Conceptual understanding of the mathematics, numerical analysis,
statistics, and computer and information sciences which underpin the engineering discipline.
It was when we were using statistical tools such as ANOVA
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