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Introduction to management (MGMT1002) - Coggle Diagram
Introduction to management (MGMT1002)
Organisational culture and structure
Organisational structure
Models and approaches
The essence of structure
• Organisational charts
visual representations of vertical and
horizontal relationships
• Organisational design
Application of optimal structures of accountability and responsibility as instruments for achieving organisational goals
Pillars of organizational structure
The horizontal specialisation
The vertical hierarchy of authority
Common models
Divisional structure
A divisional design structure gives larger companies the capacity to separate large sections of the business into semi-autonomous units or divisions. These groups are self-managed and focused on a narrow aspect of the business with their own goals to accomplish.
Unlike departments, divisions have more autonomy from the rest of the organization in that they often have their own top-level executive who manages the operations of the division. This autonomy allows managers to focus specifically on their individual unit, its resources and its results. Many believe that having their own top-level executive is what allows divisional structures to be so successful, because it ensures that someone who has power, authority and resources is available at all times.
A downside to this type of organizational structure is that by focusing on divisions, employees working in the same function in different divisions may be unable to communicate well between divisions. This structure also raises issues with accounting practices and may have tax implications.
Matrix
In the matrix structure, employees may report to two or more bosses depending on the situation or project. For example, under normal functional circumstances, an engineer at a large engineering firm could work for one boss, but a new project may arise where that engineer’s expertise is needed. For the duration of that project, the employee would also report to that project’s manager, as well as his or her boss for all other daily tasks.
The matrix structure is challenging because it can be tough reporting to multiple bosses and knowing what to communicate to them. reporting to multiple managers may add confusion and conflict between managers over what should be reported. And if priorities are not clearly defined, employees, too, may get confused about their roles.That’s why it’s very important for the employees to know their roles, responsibilities and work priorities.
A hybrid organizational structure, the matrix structure is a blend of the functional organizational structure and the projectized organizational structure.
Advantages of this structure is that employees can share their knowledge across the different functional divisions, allowing for better communication and understanding of each function’s role. And by working across functions, employees can broaden their skills and knowledge, leading to professional growth within the company.
Functional structure
The functional structure focuses on practical specialization whereby similar or related occupational specialties are grouped together (also referred to as departmentalization). Departmentalization groups workers with similar job roles into work units based on a product or service, activities performed by employees, level of skill or expertise, types of customers or resources. Explicit job titles, chain of command, reporting relationships and a well-defined channel of communication exist within these specialized work units in order to maximize their functionality.
A functional organization is designed on a strong hierarchy. Using the idea of departmentalization, the organization will be divided into individual departments, where each department has a specific function and all departments function independently to execute organizational goals.
most appropriate when an organization functions around only one product or service, this allows those individually functioning units to each complete one respective task surrounding the production and sales of that product or service.
Team based
Employees must be trained to work on teams, receive cross functional skills training, and he be compensated accordingly. Without a properly implemented team based pay plan many of the benefits of a team structure may be lost.
Less managment, improved relationsips, increased productivity and balance
In a team based structure, the entire organization consists of work groups or teams that perform the organization’s work. In such a structure, it goes without saying that team members have the authority to make the decisions that affect them, because no rigid chain of command governs these work arrangements.
Simple structure
typically seen commonly in startups
Simple structure is a basic organizational design structure with low departmentalization, little work specialization, wide spans of control, centralized authority (typically the owner has most of the power) and little formalization or rules that govern operation. Organizations that use a simple structure are typically flat
Network structure
The network structure is a newer type of organizational structure viewed as less hierarchical (i.e., more “flat”), more decentralized, and more flexible than other structures. In a network structure, managers coordinate and control relationships that are both internal and external to the firm.
The concept underlying the network structure is the social network—a social structure of interactions. Open communication and reliable partners (both internally and externally) are key components of social networks.
Proponents argue that the network structure is more agile than other structures. Because it is decentralized, a network organization has fewer tiers, a wider span of control, and a bottom-up flow of decision making and ideas.
A disadvantage of the network structure is that this more fluid structure can lead to more complex relations in the organization.
Boundaryless organisations
Hollow structure
the organisation has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster
Modular structure
• firm assembles product chunks, or modules, provided by outside contractors
Virtual structure
A company created ‘specifically to respond to an exceptional market opportunity that is often temporary
An organization that is not defined or limited by boundaries or categories imposed by traditional structures. It blurs the historical boundaries surrounding an organization by increasing its interdependence with its environment. Rather than having functional specialties located in departments working on distinctive tasks, these internally boundary less organizations group employees to accomplish some core competency.
Trends in organisational structure
• Moving from hierarchical organisational structures to flatter, more agile, teambased structures
• Done to enhance flexibility and responsiveness to market needs, and to compete effectively with leaner, more entrepreneurial startups
Definition
Division of labour & patterns of coordination, communication, workflow, and formal power that direct organisational activities
Common elements of organisations
Common purpose
Coordinated effort
Division of labour
Hierarchy of authority
Span of control
Authority, responsibility and delegation
Centralisation versus decentralisation of authority
Contingency
Structure, then culture?
Contingency design
Assumptions
Development of an organisation is not as linear as this model suggests
Mechanistic vs organic organisations
Mechanistic
Specialised tasks
Formalised communication
Many rules and procedures
Few teams or task forces
Centralised hierachy of authority
narrow span of control, taller structures
Organic
Decentralised hieracrhy of authority
Few rules and procedures
Shared tasks
Informal communications
Many teams or task forces
Wider span of control, flatter structures
Structre and strategy: a mutual relationship
• Strategic intent lies behind the creation of an organisational strategy
• Clear task assignment helps with collaboration
• If the strategy is changed but the structure is not, the structure will pull the organisation back
• Changing structure takes longer than changing strategy
Lawrence and Lorsch model
An open systems theory of how organizations and organizational sub-units adapt to best meet the demands of their immediate environment
Differentiation
tendency of the parts of an organisation to disperse and fragment
Integration
tendency of the parts of an organisation to draw together to achieve a common purpose
Organsiational life
Stage 2: Youth stage
growth and expansion
Stage 3: Midlife stage
period of growth evolving into stability
Stage 1: Birth stage
The organisation is created
Stage 4: Maturity stage
organisation becomes very bureaucratic, large and mechanistic
Organisation culture
National culture and its impact
National Culture – The GLOBE Studies
People carry ‘mental programs’ that are developed in early childhood, are reinforced through life, and contain a component of national culture
Global Leadership and Organisational Behaviour Effectiveness
• 170 Researchers, 62 countries, 18,000 managers
• 9 Key dimensions that distinguish cultures from one another
9 dimensions of culture
Power distance
Low power distance
Decentralised
Flat
Personal experience and relying on subordinates who expect consultation
Consultative leadership
High power distance
Autocratic
• Formal rules and expect to be told
• Large hierarchy
Centralised decision
structures
Uncertainty avoidance
Institutional collectivism
Gender egalitarianism
Assertiveness
Future orientation
Performance orientation
Human orientation
In-group Collectivism
Learning, functions and developing culture
The importance of culture – 4 functions
sense-making device
Collective commitment
Organisational identity
Social system stability
Changing organisational culture
Formal statements
Slogans and sayings
Stories, legends and myths
Leader reactions to crises
Role modelling, training and coaching
Physical design
Rewards, titles, promotions and bonuses
Organisational goals and performance criteria
Measurable and controllable activities
Organisational structure
Organisational systems and procedures
Learning about culture
Story
• Narrative based on true events, which is repeated – sometimes embellished upon – to emphasise a particular value
Hero
• Person whose accomplishments embody the values of the organisation
Symbol
An object, act, quality, or event that conveys meaning to others
Rites and rituals
Activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments
Merging cultures
Defining culture
• The values and assumptions shared within the organisation
• Defines what is important and unimportant
• A company’s DNA: an invisible yet powerful template that shapes employee behaviour
Culture is a shared way of doing things BUT It is largely implicit. We don’t realise how we are doing something
The universal problems
Culture is manifested through our solutions to 5 universal problems.
We use our resources (physical, intellectual) to solve these problems
Relationship with time
Relationship with others
Relationship with environment
Survival
Death
More than just ‘the way we do things around here’
a system of shared beliefs and values that develops within an organisation and guides the behaviour of its members
Competing values framework
Adhocracy
Flexibilty and discretion
Thrust
Create
External focus and differentiation
Means
Adaptability, agility, creativity
Ends
Innovation, gorwth, cutting edge output
Hierarchy
Internal focus and integration
Stability and control
Thrust
Control
Means
Capable processes, consistency, process control, measurement
Ends
Efficiency, timeliness, smooth functioning
Clan
Thrust
Collaborate
Means
Cohesion, participation, communication, empowerment
Flexibilty and discretion
Ends
Morale, people development, commitment
Internal focus and integration
Market
External focus and differentiation
Stability and control
Thrust
Compete
Means
Customer focus, productivity, enhancing comeptitiveness
Ends
Market share, profitability, achievement
Levels of organisational culture
Three levels of organisational culture
. Espoused values
Explicitly stated values and norms
Basic assumptions
Core values of the organisation
Observable artefacts
Physical manifestations of culture
Planning, management and decision making
Strategy
Strategy and strategic management
Strategy
large-scale action plan that sets the direction for an organisation
Strategic management
process that involves managers from all parts of the organisation in the formulation and the implementation of strategies and strategic goals
Process of strategic management
Establish the mission and vision
Mission and vision statements
Mission statement
expresses the purpose of the organisation
the purpose, the ultimate goal is to maximise shareholder wealth
Vision statement
expresses what the organisation should become; where it wants to go strategically
establish the grand strategy with environmental scanning
Environmental scanning
PESTEL
Political, economic, sociocultural, technological, environmental and legal factors that can affect an organisation
SWOT
A search for the Strengths, Weaknesses, Opportunities and Threats affecting the organisation
Careful monitoring of an organisation’s internal and external environments to detect early signs of opportunities and threats that may influence the firm’s plans
Formulate the strategic plan (eg using the Porter 5 forces)
Carry out strategic plan
Maintain strategic control
Feedback: revise actions if necessary based on feedback
5 steps
Why is strategic management important
Provide direction and momentum
Encourage new ideas
Develop a sustainable competitive advantage (occurs when an organisation can stay ahead in four areas):
Being responsive to customers
Innovation
Quality
Effectiveness
Fallacies of strategic planning
The fallacy of prediction
According to the premises of strategic planning, the world is supposed to hold still while a plan is being developed and then stay on the predicted course while that plan is being implemented.
The fallacy of detachment
Traditional strategic planning is based on the notion that strategists ought to be detached from middle managers and employees when analyzing the data in order to remain objective and to prevent bias
The fallacy of formalization
Formal systems could certainly process more information. But they could never internalise it, comprehend it, synthesize it. (Mintzberg,1993, p. 111)
formalization ignores the role of learning from unexpected events and the apprehension of unanticipated patterns in developing novel strategies. Formalizing activities works against the insight, creativity, and synthesis needed for novel emergent strategy
Goal setting
Planning as goal setting
Goals are desired outcomes or targets for individual workers, groups or the entire organisation. They guide managers’ decisions and form the criteria against which work results are measured
Goals might differ across the organisation and even come into conflict with one another
SMART goals
• Specific
• Measurable
• Attainable (achievable)
• Results-oriented (relevant)
• Target dates (time-based/timely)
You can't quantify absolutely everything - and what gets measured gets managed - not everything can be managed and measured
Management by objectives
The process of management by objectives
Jointly set objectives
Develop an action plan
Periodically review performance
Give performance appraisal and rewards, if any
Types of objectives
Improvement objectives
Personal development objectives
Maintenance objectives
What is planning
The process of making plans for something, Formulating future course of action to achieve results, Setting goals and deciding how to achieve them
What are “plans”?
documents that outline how goals are going to be met (e.g. allocations, budgets, schedules)
Types of planning
Personal (scheduling, prioritising, goal-setting)
Managers – Group – Organisational
Informal – Formal
Operational – Tactical – Strategic
Action and operating plans
Action plan
defines the course of action needed to achieve the stated goal
Operating plan
designed for a one-year period
defines how you conduct your business based on the action plan
identifies clear targets such as revenue, cash flow and market share
Standing and single use plans
Standing
Developed for activities that occur repeatedly over a period of time
Consist of policies, procedures and rules
Policies
Outlines the general response to a designated problem or situation
Procedures
Outlines the response to a particular problem of circumstances
Rules
Designates specific required action
Single use plans
Program
Encompasses a range of projects or activities
Project
Plan of less scope and complexity than a program
Plans developed for activities that are not likely to be repeated in the future
Why should we plan
Helps cope with uncertainty
We can check on our progress
Helps coordinate activities
Makes us think ahead
Helps us manage our relationship with time
Why should we NOT plan
Planning takes time
You may have to make some decisions without a lot of time to plan
The complex and fast-moving world sets for ‘genuine uncertainty’
We can’t predict the future
Incremental change rather than planning helps deal with uncertainty
Managing our relationship with time
Kronos (objective time)
Past, present and future are conceptually separated
Is measured by the clock and is fixed in its measurement standard
Privileges the productive, rational mind
Plays an instrumental role in enabling and constraining resources
Structures organizational actions,
Has a potential to increase control, efficiency, and speed in production
Kairos (subjective time)
Past, present and future are experientially interrelated
Beyond mechanistic ‘time management’
It is about creating a conscious relationship with time…
When one minute feels like an hour…
When we lose a track of time in a state of creative flow or deep concentration (Csikszentmihalyi, 1996)
In the workplace – organizing social relations and sensing our environment to create meaning in life
Engaging in mindful planning
Planning through time and managment levels
Middle management
Tactical planning
6-24 months
Implememnt polcies and plans from top meanagment and coordinate activites of first line managers below, make decisions without clearly outlined information procedures
First line management
Operational planning
1 to 52 weeks
Direct daily tasks of non managerial personnel, decisions often predictable, and follows a well defined set of procedures
Top line management
Strategic planning
1-5 years
Long term decisions about overall direction of organisation. Managers need to pay attention to environment outside of organisation, be future oriented, deal with uncertain and highly competitve conditions
Decision making
Decision making is the process of identifying and choosing a course of action.
How do we make decisions?
Think up alternative solutions
Evaluate alternatives and select a solution
Identify the problem or opportunity
Implement and evaluate the solution chosen
Why do we fail?
People are not rational decision makers
Bounded rationality
Our ability to be rational is limited by numerous constraints
Complexity
Problems that need solving are often exceedingly complex and beyond understanding
Time
There is not enough time or money to gather all relavant info
Imperfect information
Managers have imperfect, framentary information about hte alternatives and their consequences
Different Cognitive capacity, values, habits, skills, unconscious reflexes
personal limitations and biases affect judgement
conflicting goals
principle agent problem
Different priorities
some data are consdiered more important, so certain facts are ignored
information overload
There's too much info for one person to process
Non rational models of decision making
Incremental model
managers take small, short-term steps to alleviate a problem, rather than steps that will accomplish a long-term solution
Satisficing
managers seek alternatives until they find one that is satisfactory, not optimal
Intuition
making a choice without the use of conscious thought or logical inference
sources are expertise and feelings
Decision making styles
Directive
Low tolerance for ambiguity
Value orientation is to task and technical concerns
Conceptual
High tolerance for ambiguity
Value orientation is people and social concerns
Analytical
High tolerance for ambiguity
Value orientation is to task and technical concerns
Behavioural
Low tolerance for ambiguity
Value orientation is people and social concerns
Effective and ineffective responses
Effective
Credibility
'How believable is the information about the situation?'
Urgency
'How quickly must I act on the information about the situation?'
Importance
'How high priority is this situation?’
Ineffective
Relaxed avoidance
Relaxed change
Defensive avoidance
Panic
Decision making biases
Avvailability bias
Decision makers distort judgemetns and probailibty estimates
Representation bias
Decision makers make decisions for the situations they perceive as similar rather than the actual situation
Framing bias
Decision makers distort what they see and create incorrect reference points
Sunk cost
Decision makers incorrectly fixate on past expenditures of time, money or effort in assessing choices rather than on future consequences
Confirmation bias
Decision makers seek out information that reaffirms their past choices and discounts information that contradict their past judgements
Randomness
Decision makers make choices based on assumptions of connections between events
Self-serving
Decision makers choose alternatives which reflect well on them rather than the best solutions
Anchoring effect
Decision makers overemphasise information received early in the decision making process
Hindsight
Decision makers incorrectly credit themselves witht he ability to accurately predict outcomes
Immediate gratification bias
Decision makers choose alternatives which provide quick payoffs or avoids immediate costs
Selective perception bias
Decision makers distort identification of problems, development of alternatives and evaluation processes
Overconfidence bias
Decision makers trust rather than verify their facts and opinions
Dunning Kruger effect
“….the miscalibration of the incompetent stems from an error about the self, whereas the miscalibration of the highly competent stems from an error about others” (Kruger & Dunning, 1999, p 1127)
“ignorance more frequently begets confidence than does knowledge” (Darwin, 1871, p 3)
Managing in a global environment
PESTEL Analysis
PESTEL is a framework used in environmental scanning
Gives an overview of different macroenvironmental factors that need to be considered by the firm
Political
Economic
Social (Socio-cultural)
Technological
Environmental
Legal
Using PESTEL
Research, research, research
Classify the research into each component (for example, trends in Software as Service is Technological)
Don’t be too general - you need to be specific and relevant to the company
You MUST discuss why the information is important, what it means, how it impacts the firm etc
THIS is the analysis, not putting together a list of factors under the PESTEL framework
Globalisation
The trend of the world economy towards becoming a more interdependent system
the collapse of time and distance
what does this mean for managers and their organisations?
The increasing tendency of the economies of the world to interact with one another as one market instead of many national markets
refers to the free movement of goods, capital, services, technology and information
Signs of economic globalisation
Companies become supersized (global companies) and minimised (mini-companies)
Megamergers worldwide
Broken Hill Proprietary + Billiton
• Rio Tinto + Alcan
Concerns about Global companies
Mini-firms operating worldwide
Small companies can manoeuver faster
Small companies can get started more easily
Trends - ecommerce
Ecommerce
The buying and selling of products and services through computer networks
Australians spent $27.5 billion buying goods online in 2018 (Auspost eCommerce Industry Report 2019)
Digitalisation
Anything that can be digitised – will be digitised (medicine, security, education, army, - everything) (Kjell Nordstrom)
Software as a Service
Effects of globalisation
The internet may be enhancing networks while weakening communities, within organisations as well as across them (Mintzberg, 2009 p. 37)
The effects of the digital age on management
It affects pace and continuity
It affects the orientation to action
It affects the spoken nature of managing
It affects the lateral nature of the job
Managers, organisation and environment
Managers and organisations are influenced by the environment
things happen outside their environment, their control
They affect their environment
New products revolutionise consumer behaviour
Faulty products or services cause suffering to customers or public in general
Organisational activities affect climate, nature and/or ecological balance of the planet
Managerial decisions affect customers
They interact with their environment
Changing environments create uncertainty pushing managers to better understand and predict the changes and trends in the environments affecting their organisations
New competitors emerge
Law changes
Weather changes
Availability of resources change
Price of resources change
New government comes to power
Suppliers products found faulty
Dynamism: how quickly things change
e.g. rapid movements of financial markets
It's less important for businesses to predict what happens, more important to build systems that have flexibility to deal with the change
The organisation's environment
Internal stakeholders
Owners
Board of directors
Employees
Task environment
Customers
Competitors
Suppliers
Distributors
Strategic allies
Employee organisations
Unions
Professional organisations
Local communities
Financial institutions
Government regulators
Special-interest groups or NGOS
Mass media
starts to relate to the firm itself
General environment
Technological
New developments in methods for transforming resources into goods and services
Socio-cultural
Influences and trends originating in human relationships
Economic
General economic conditions and trends
Demographic
Changes in the characteristics of a population, such as age, gender or ethnic origins
Political-legal
Changes in the way politics shape laws and laws that shape opportunities and threats
International
Changes in the economic, political, legal and technological global system
affects everyone, all organisations
flow on effect from both environmental factors
International management
Why learn about it?
You may deal with foreign customers or partners
You may deal with foreign employees or suppliers
You may work for a foreign-owned firm
You may work outside your home country for a home-country firm or for a foreign one
The international manager
Polycentric
‘they know best’
take the view that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone
Geocentric
‘what’s best is what’s effective, regardless of origin’
accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective
Ethnocentric
‘we know best’
believe that their native country, culture, language and behaviour are superior to all others
Ethnocentrism or Parochialism
narrow view in which people see
things solely through their own perspective
International expansion
Licensing and franchising
Joint ventures
Importing, exporting and countertrading
Wholly owned subsidiaries
Global outsourcing
From lowest risk and investment to highest
Free trade
Barriers to international trade
Import quotas
Limits on the numbers of a product that can be imported
Non-tariff barriers
Rules and regulations affecting the form in which goods can be exported or procedures to be adhered to
Tariffs
Customs duty, or tax, levied mainly on imports
Embargoes
Complete ban on the import or export of certain products
National culture
A shared set of beliefs, values, knowledge and patterns of behaviour common to a group of people
Shaped by how a group of people deals with the 5 universal problems
Relationship with time
Relationship with environment
Relationship with people
Survival
Death
Organisational environment
The complex of chemical, physical and biotic factors (such as climate, soil and living things) that act upon an organism or an ecological community and ultimately determine its form and survival
The aggregate of social and cultural conditions that influence the life of an individual or community
The circumstances, objects or conditions by which one is surrounded
Organisations as open systems
The environment supplies
Resource inputs
Materials
Information
Technology
People
Money
The organisation creates
Tranformation process
Workforce turns resources into outputs
The environment consumes
Product outputs
Finished goods and/or services
Consumer feedback affects the Resource inputs in the cycle
Managers, Management and Managing
What is management?
The pursuit of organisational goals effectively and efficiently by integrating the work of people, through
planning, organising, leading and controlling
the organisation's resources
Efficiency vs effectiveness
Effectiveness is about doing the right task, completing activities and achieving goals
Efficiency is about doing things the optimal way, performing in the manner where their is least wasted resource and effort
The act and art of managing is getting things done through people
Management is a practice where art, science and craft meet
Views of Management
Historical
Classical
Scientific Management
Belief that productivity can increase by making jobs more routine and predictable
select workers with the right attributes
Give workers training and incentives
Evaluate a task bu scientifically studying each part of the task
use scientific methods to plan work methods
Emphasis on scientific study of work methods to improve productivity of individual workers
Frederick Taylor and Galbreths
based off motion studies, institute differential rate system for where efficient workers earn higher wages
Emphasis on ways to manage work more efficiently
Problems and importance
problem is that it's too mechanistic, treating workers more like cogs in a machine
but it's importance in the essence that work activity was amenable to a rational approach, through applications of scientific methods and motion studies and job specialisation, it was possible to increase productivity
Modern
Human relations
Abraham Maslow and the Hierarchy of Needs
Some needs need to be fulfilled before others
physiological > safety > social > esteem > self actualisation
Douglas McGregor
Helps managers understand how their beliefs affect their behaviour, and how that in turn affects the behaviour of the people they manage
Self fulfilling prophecy
Theory X vs Theory Y
Theory X is the pessimistic, negative views of workers, workers are viewed to be irresponsible, lack ambition, hate work and resistant to change, want top be led rather than lead
Theory Y is the outlook of human relations proponents, workers are considered to be capable of accepting responsibility, self direction and self control, and being imaginative and creative
Quantitative
Management science
Operations research, consistent with practice of evidence based management
Uses mathematics to aid in problem solving and decision kaking
Application of quantitative techniques such as statistics and computer simulations
Operations Managment
Managing production and delivery of an organisation's products and services more effectively, work scheduling, production planning, factory locations and design, and optimum inventory levels
rational managment of resrouces and distribution of goods to ensure efficiency and effectiveness of busioness operation
Behavioural
Early behaviourism: Munsterberg, Follett and Mayo
Munsterberg
identify psychological conditions under which employees will do their best work
devise management strategies to influence employees to follow management's interests
Study jobs and determin which people are the best suited to specific jobs
Mary Parker Foilett
conflicts should be resolved by having managers and workers talk over difference to find solutions that satisfy both parties in a process called integration
The work process should be under control of workers with relevant knowledge, rather than by managers who act as facilitators
organizations should be operated as communities, with managers and subordinates working together in harmony
Elton Mayo & the Hawthorn effect
Emplloyees would work harder if they recived attention, if they thoguht mangers cared about their welfare and if superiors paid special attention to them
Human relations movement
proposed that better human relations would increase worker productivity
Importance of understanding human behaviour and motivating employees towards achievements
Administrative Management
Fagol and Weber
Fayol identitfied the 4 functions of managment
Concerned with managing the total organisation, not just under tasks
Behavioural science approach
Relies on scientific research for developing theories about human behaviour that can be used to provide practical tools for managers
Psychology, anthropology, sociology, economics
Competition vs cooperation
cooperation without intergroup competition promotes higher achievement and productivity than cooperation with intergroup competition
Cooperation is superior toi individualsitic efforts in acheiveemtn and productivity
Cooperation is superior in promoting achievement and productivity
More viewpoints
Contingency
Manager's approach should vary accroding to the individual and eniromental situation
3 underlying theories
Organizations are open systems
The organsiation structure that optimises performance is dependant on the particular circumstances faced by the organsiation
There is no one best way for all organisations, but there is a best way for each organisation
3 main contingencies
Technology
the form of technology that keeps everything moving smoothly varies, the degree to which technology is designed to handle routine problems vs non routine problems is the key tech contingency
Size
smaller organisations: decentralisation, larger organisations: centralisation
Environmental uncertainty and dependance
implications whether rigid bureaucratic structures are likely to be more effective way of organising work
Quality management
Quality control
Total quality control
Quality assurance: ensuring errors don't happen in the first place
qualtiy circles, a team based approach
statistical quality control
Total quality management
Get every employee inlvoed
Listen to and learn from customers and employees
make continuous improvement a priority
1 more item...
Use accurate standards to identify and eliminate problems
A comprehensive approach - led by top management and supported throughout the organisation-dedicated to continuous quality improvement, training and customer satisfaction
strategy for minimising errors by managing each stage of production
Just in case vs just in time
Just in case sees value in building insurance into the way work is organised so that if there are interruptions to production or sudden jumps in demand, there is always capacity to supply
Just in time believes work should be completed to meet demand, this means less cost in holding stock in anticipation and less risk of producing something faulty or not wanted
challenge of that is that work must be completed right the first time and every time, quality management is an absolute priority
Systems
4 parts of a system
Outputs
Whatever comes out
Feedback
information about reaction of the environment to the outputa that affects the inputs
Transformation process
organisation's capabilities that are applied at converting inputs into outputs
Inputs
Whatever goes in
Open and closed systems
An open sustem continually interacts with its environment
A closed system has little interaction with its environment, it often unders entropy, loses its ability to control itself and fails
This viewpoint regards the organisation as a collection of subsystems making up a whole and a part of a larger environment
Theories
Complexity theory
the study of how order and pattern rise from very complicated, appratnetly chaotic systems
recognizes all complex systems are networks of many interdependent parts that interact with each other according to certain simple rules
1 more item...
the ultimate open system
Socio-techical systems theory
Organisational choice over how work is organised
Organizations should aim for joint optimisation
Encoruages manages to think about how new technology could affect worker motivation, morale and stress
A system is a set of interrelated parts that operate toegether to achieve a common goal
A learning organsation
Creating and acquiring knowledge
scanning external environments, hire new talent and devote resources to training na ddveleopment
Transferring knoweldge
reduce barriers to sharing info and knowledge to employees
Modifying behaviour
actively creates, acquires, and transfers knowledge within itself and is able to modify its behaviour to reflect new knowledge
Evidence based management
Evidence based management is translating principles based on the best evidence into organisational practice, bringing rationality to the decision making process
Attitude of mission
Mindset
is willing to set aside belief and conventional wisdom to act on facts
unrelenting commitment to gathering information necessary to make informed decisions, to keep pace with new evidence
3 truths
True is better than new
Doing well usually dominates
There are few really good ideas
Facing hard facts on what works and what doesn't, understanding half truths that give managerial wisdom and refuting total nonsense
Rationality means making decisions on the basis of understanding the ends and the means of knowing what management actions bring what results and making decisions accordingly
Functions of management
Organising
Arranging tasks, people and resources to accomplish work
Leading
Motivate, direct and otherwise influence people to work hard and achieve goals
Planning
Setting goals and deciding how to achieve them
Controlling
Monitor performance, compare it with goals and take corrective action as needed
Managers
Levels and areas of management
Middle level managers
Implement policies and plans from top managers and supervisors, coordinate activities of first line managers
May be viewed as barrier to quick decision making and a risk to creating 'empire-building' managers
but their role is critical, without them, there's less ability to coordinate within the organisation
First line managers
direct daily tasks
short term operational dicisions, directing tasks of non mangement personnel
Top level managers
Overall direction of the organsiation, establishing objectives, policies, strategies and paying attention to environment of the organisation
Future oriented, deals with uncertainty and highly competitive conditions
Functional vs general managers
functional managers are responsible for 1 organisational activity
general mangers are responsible for several organsational activities, often in smaller companies where there is less staff
Managers for different types of organisations
For profit: Making money
Nonprofit: Offering services
Mutual benefit: Aiding members
functions of managers in these three different types of organisations still remain the same: the 4 functions, the measures of success is what's different
for profit is measured by money generated; and for the other two, the effectiveness of the service delivered
Challenges of managers
Top 5 challenges of managers
Depoliticise decision making
greater openness to ensure organisation intents don't dominant over personal interests
Devleop performance measures
decisions today impacts on future generation's managers
Fruther unleash human imagination
identify roles and broader future choices
Reduce fear, increase trust
idea sharing
Retrain management minds
critical thinking
What do managers manage for?
Globalisation
Globalisation has levelled the competitive playing fields between industrial and emerging market economies
Globalisation is giving foreign owned companies more freedom to determine whether they manufacture in the country or serve other markets by importing
Information Technology
Implications for e-business
far ranging e managment and e communication
concise, powerful emails and voice messages
accelerated decision making, conflict and stress
info overload from connected databases
change in organisation structure, jobs, goal setting and knowledge management
telecommute, working from hime, video conferences, collaborative computing
require managers to be more flexible, increased emphasis of knowledge management, implementation of systems and practices to increase knowledge and info sharing throughout organisation
Diversity
Diversity and variety in staffing, part of a manager's job is to maximise contributions of employees diverse in race, gender and ethnicity
Competitive advantage
The ability to produce goods/ services more efficiently than competitiors, out performing them
4 areas: responsiveness, innovation, quality and efficiency
Sustainability
economic development that meets the needs of the present without compromising the ability of the future generations to meet their own needs
an idea that businesses are responding to because it does not have to compromise abilty to make products
sustainability is a driver pf new product ideas and encourages shift to more efficient forms of technology
Own happiness and life goals
Ethical standards
GFMC 2008-10
Skills needed to be exceptional (efficient, effective)
Conceptual skills
The ability to think critically, to visualise the organisation as a whole and understand how the parts work together
top level managers
Human skills
Ability to work well with other people to get things done
All levels of management
Technical skills
Job specific knowledge that's needed to perform well in a technical field
first line managers
Hallmarks of a good manager
Create space for employees to demonstrate their capacity to do their jobs
Provide support when needed in ways that offer feedback without interfering in the work they assigned
Give recognition and praise when work is done well
Don't be afraid to make tough decisions
Give employees challenging work to do
Managers vs Entrepreneurship
What is entrepreneurship?
Thew process of taking risks to create a new enterprise
social entrepreneurship is the use of entrepreneurial skills and practices to achieve social missions and goals
an entrepreneur is soemoen who sees a new product or service and launches a business to try to realise it
Intrapreneur is someone who works in an existing organisation, who sees an opportunity for a product and service and mobilises the organisation's resources to try and realise it
Differences
AN entrepreneur starts a business while managers grow and maintain the business
necessity vs opportunity
necessity is trying to compensate for loss of jobs or ioncome
opportunity is when they start a business out of deisre
Characteristics shared
high energy level and active orientation
High tolerance for ambiguity
Belief in personal control of destiny
Self confidience and tolerance of risk
Dynamics of managing
Henry Mintzberg's key findings
a manager's work is characterised by fragmentation, brevity and variety: the brevity and variety of activities in the context of fragmentation and discontinuity of the job
The unrelenting pace of managing, long hours, fast pace
Favouring of informal and verbal forms of communication over written
What do managers do?
Informational roles
Disseminator
Spokesmen
Monitor
Decisional roles
Disturbance handler
Resource allocator
Entrepreneur
Negotiator
Interpersonal roles
Liaison
Leader
Figurehead
Communication
effective and ineffective communication
barriers to communication
Physical and personal characteristics as barriers
oPhysical barriers
oSemantic barriers
oPersonal barriers
oVariations in how information is processed and interpreted
oVariations in trustworthiness and credibility
oGender differences
when men communicate
• Report talk – give advice, asset power
• Give advice directly
• Dominant conversation style
• Apologise less often
• Less sensitive to non-verbal cues
when women communicate
• Rapport talk – relationship building
• Give advice indirectly
• Flexible conversation style
• Apologise more often
• More sensitive to non-verbal cues
Information processing barriers
oFiltering
oSelective perception
oInformation overload
human transgressions
oOversized egos
oFaulty listening skills
oTendency to judge others’ messages
oInability to listen with understanding
oEmotional disconnects
oStereotypes and prejudices
o“The plight of the tongue-tied”
conflict and communication
Some of the causes of miscommunication and non-communication in the workplace
oAssumptions
oHasty communication
oEmail
oNon-responsiveness
o Misunderstanding
oLack of listening/inattentiveness
communication and interpersonal skills
Communication in management
“Communicating is not simply what managers spend a great deal of time doing but the medium through which managerial work is constituted”. (Hales, 1986, p. 101 cited in Mintzberg, 2009, p. 53).
Managers and communication
o Managers spend around 40-80% of their time simply communicating
o Communication promotes the flow of information all around the manager
communication and its role in management
• Monitoring activities and being the nerve centre of the unit
• Disseminating information
• Being a spokesperson by representing the unit to the outside world
• The verbal, the visual and the visceral – speaking, seeing, and feeling the workplace space
reading, writing, speaking and listening more effectively
Being an effective reader (What? How? Why?)
• Speed reading doesn’t work
• Learn to streamline reading
• Be well informed about periodicals and books
• Transfer your reading load
• Make internal memos and email more efficient
• Do top-down reading
Being an effective writer (respect the rules; respect the audience, respect the language)
do not
Use abbreviations
Begin an email with ‘hey’
do
• Spell words correctly
• Use complete sentences
• Use proper capitalisation and punctuation
Effective listening
Show respect
give everyone the opportunity to explain their ideas without interrupting, actively try to help the sender convey his message
listen from the first sentence
turn off your internal thoughst and whatever you were thinking about prior to the interaction
be mindful
stay in the moment and focus on the sender, don't try to figure out what the speaker is going to say
keep quiet
you have two ears and one mouth, use them accordingly. try to use the 80/20 rule: your conversational partner should speak 80% of the time, you should speak 20%
ask questions
asking questions clarifies what they said and demonstrates you're listening
Paraphrase and summarise
paraphrasing amounts to repeating back to someone what you just heeard. summarising is used to integrate or consolidate an entire conversation, both these techniques enhance communication accuracy because theyhelp ensure the messages are being understood correctly
Remember what was told
either take notes or make an effort to log critical information into your mentalcomputer
Involve your body
use nonverbal cues to demonstrate interest and involvement
Effective Speaking - Glossophobia
Tell ‘em what you’re going to say (5-15%)
Say it (75-90%)
The ability to talk to a room full of people is on of
the greatest skills you can have
A Stanford University study found that the top predictor of success and professional upward mobility is how effective you are at public speaking
Tell ‘em what you said (5-10%)
overcoming barriers
listen actively
listen for the full meaning of the message without making premature judgment or interpretation or thinking about what you are going to say in response
constrain emotions
recognise when your emotions are running high, when they are, don;t communicate until your calmed down
simplify language
use words that he intended audience will understand
watch nonverbal cues
be aware that your actions speak louder than words, keep the two consisten
use feedback
importance of feedback
giving and receiving feedback
• “We all need people who will give us feedback. That’s how we improve.” – Bill Gates
• “Criticism, like rain, should be gentle enough to nourish a man’s growth without destroying his roots.” – Frank A. Clark
• “Feedback is the breakfast of champions.” – Ken Blanchard
• “Feedback is a gift. Ideas are the currency of our next success. Let people see you value both feedback and ideas.” – Jim Trinka and Les Wallace
• “True intuitive expertise is learned from prolonged experience with good feedback on mistakes.” – Daniel Kahneman
negative and positive feedback
negative
The workplace context – the reaction to the employee’s actions (including work outcomes or behaviours) to inhibit further performance of those action
o Must be constructive to be effective
o Most likely to be accepted when it comes from a credible source or if it is objective
positive
The workplace context – reaction that aims at amplifying employees’ personal strengths and his
or her excellence
o More readily and accurately perceived than negative feedback
o Boosts employees’, teams’ and organisations’ morale
providing feedback
Focus on specific behaviours
Keep feedback impersonal
Keep feedback goal-orientated
Make feedback well timed
Ensure understanding
Direct negative feedback towards behaviour that the receiver can control
check the accuracy of what has been communicated or what you think you heard
More effective non verbal communication skills
do
be aware of your facial expressions
occastional nod in agreement
smile and show animation"
speak in a quiet reassuring tone
speak at a moderate rate
lean toward speaker
maintain eye contact
don't
lick lips, bite nails, play with your hair
close your eyes
yawn excessively
speak in an unpleasant tone
speak too slowly or too quickly
turn away from speaker
look away from speaker
what is communication?
two models
Informational or transmission model
The transmission model of communication describes communication as a one-way, linear process in which a sender encodes a message and transmits it through a channel to a receiver who decodes it. The transmission of the message many be disrupted by environmental or semantic noise
constitutive model
Instead of portraying communication as merely the transmission of information, the constitutive model posits that communication has power to shape reality itself (Baxter & Montgomery, 1996).
To take a constitutive view of communication means to presume that communication, or interaction, is a process of meaning creation or social construction. An important implication of a constitutive view is that communication is assumed to be the basic building block for social entities, such as personal relationships and organizations.
The process by which information is transmitted and understood between two or more people
The communication process
Reciever decodes the message, decides if feedback is needed
receiver expresses reaction or feedback through a medium
message is transmitted through a medium
in between 2 and 4, where the message and feedback is expressed through a selected medium, there can be noise that disrupts the message
sender encodes message, selects medium
The medium
The medium is the channel by which the message travels (verbal, written, or visual)
Medium richness
rich medium (face-to-face, video conference)
best for non-routine situations and to avoid oversimplification
lean medium (newspapers, reports, emails)
best for routine situations and to avoid overloading
indicates how well a medium conveys information and promotes learning
formal vs informal communication
formal communication
3 types
vertical—meaning upward and downward,
horizontal—meaning laterally (sideways), and
external—meaning outside the organisation.
follow the chain of command and are recognised as official
informal communication
forms of informal communication
• Face-to-face: employees value authentic human time with the boss
• Management by wandering around
• Grapevine
• Managing by ‘being there’ based on trust (Mintzberg, 2009, p. 170)
not defined by organisation's structural hierarchy
written vs verbal communication
written
• Memos, letters, email, newsletter, etc.
• Tangible, verifiable, and more permanent
oral
• Allow receivers to respond
• Presents feedback evidence that the message has been received and understood
non verbal communication
• Includes facial gestures, voice intonation, physical distance and even silence
• Influences meaning of verbal symbols
• Less rule-bound than verbal communication
• Important part of emotional labour
• Most is automatic and non-conscious
Change management
Resistance to change
Defining resistance
• Managers have many terms to describe resistance:
Pushback, Not buying it, Criticism, Foot-dragging, etc., An innocent question, A roll of the eyes, A gossip, Overt sabotage
Nature of resistance
• Resistances arises because of social
and human considerations
Created because of blind spots and
attitudes
A model of resistance to change
resistance to change is an emotional or behavioural response to real or imagined threats to an established work routine
3 forces behind it that interacte and feed into one another
employee characteristics
change agent characteristics
change agent-employee relationship
Change is threatening
Adaptive change
Innovative change
Radically innovative change
Reasons for resistance
Individual’s predisposition toward change
Surprise and fear of the unknown
Climate of mistrust
Fear of failure
Loss of status or job security
Peer pressure
Disruption of cultural traditions or group relationships
Personality conflicts
Lack of tact or poor timing
Non-reinforcing reward system
Dealing with resistance to change
Education and communication
Participation and involvement
Facilitation and support
Negotiation and rewards
Manipulation and co-optation
Coercion (explicit & implicit)
How to change
Organisational development
• A set of techniques for implementing planned change to make people and organisations more effective
What can OD be used for?
Managing conflict
Revitalising organisations
Adapting to mergers
The OD process
Intervention
what shall we do about it
Evaluation
How well has the intervention worked?
diagnosis
what is the problem?
Feedback
How can the diagnosis be further refined?
Increasing effectiveness of OD
Success tends to include multiple interventions
It is more likely to succeed with management support
It has more success when oriented to achieve both short and long-term results
OD is affected by culture and cross-cultural considerations
innovation
What is innovation?
creation
Developing new and imaginative ideas into reality
innovation
The activity of creating new ideas and converting them into useful applications—specifically, new goods and services
invention
Creating or making up something new
How failure impedes innovation
Factors that reduce an organisation’s ability to learn from failure
Failure to value different types of knowledge
Assigning blame
Failing to capture knowledge or ‘unlearning’ so knowledge is lost
Not distinguishing between different types of failures/problems
Self-interest or political behaviours
Not being a learning organisation
Not being prepared to innovation and try new approaches
You learn more from failure than you do from success
types of innovation
process innovation
Change in the way a product is conceived, manufactured or disseminated
incremental innovation
The creation of products, services or technologies that modify existing ones
Product innovation
Change in the appearance or performance of a product or the creation of a new one
radical innovation
The creation of products, services or technologies that replace existing ones
How do people innovate?
Never giving up – Elon Musk
Hard work
Growth mindset creating conditions
4 steps for innovation
gain allies by communicating your vision
overcome employee resistance, and empower and reward them to achieve progress
recognise problems and opportunities and devise solutions
Execute well by effectively managing people, groups and organisational process and systems in pursuit of innovation
Lewin's change model
3 steps
Changing
During the changing step people begin to learn the new behaviours, processes and ways of thinking. The more prepared they are for this step, the easier it is to complete
For this reason, education, communication, support and time are critical for employees as they become familiar with the change.
Again, change is a process that must be carefully planned and executed. Throughout this process, employees should be reminded of the reasons for the change and how it will benefit them once fully implemented.
Refreezing
the act of reinforcing, stabilizing and solidifying the new state after the change.
The changes made to organizational processes, goals, structure, offerings or people are accepted and refrozen as the new norm or status quo. Lewin found the refreezing step to be especially important to ensure that people do not revert back to their old ways of thinking or doing prior to the implementation of the change.
Efforts must be made to guarantee the change is not lost; rather, it needs to be cemented into the organization's culture and maintained as the acceptable way of thinking or doing.
Positive rewards and acknowledgment of individualized efforts are often used to reinforce the new state because it is believed that positively reinforced behavior will likely be repeated.
Unfreezing
Because many people will naturally resist change, the goal during the unfreezing stage is to create an awareness of how the status quo, or current level of acceptability, is hindering the organization in some way.
Old behaviors, ways of thinking, processes, people and organizational structures must all be carefully examined to show employees how necessary a change is for the organization to create or maintain a competitive advantage in the marketplace.
Communication is especially important during the unfreezing stage so that employees can become informed about the imminent change, the logic behind it and how it will benefit each employee.
The idea is that the more we know about a change and the more we feel it is necessary and urgent, the more motivated we are to accept the change.
For Lewin, the process of change entails creating the perception that a change is needed, then moving toward the new, desired level of behavior and finally, solidifying that new behavior as the norm
Leading organisational change: Kotter's eight steps
have a communication strategy that ensures the vision and strategic plan are understood by all
enable and empower employees to make the change, this means removing barrier that prevent them from changing, ensuring employees have the resources they need and encouraging problem solving even when it involves risks
have a clear vision and strategy as the basis for implementing change
plan to have some short term successes as this demonstrates that the change can succeed. reward and celebrate such wins as thisreinforces that the change is valued
build coalitions among a team that will lead the change and ensure that they have the power to implement change where it is needed
build on any changes that are made to keep the momentum going and ensure changes flow on to other area and throughout the organsiation
Establish a sense of urgency so that the organisation understands the change is important and whyit is needed
embed the new ways of behaving into the organisation's culture by ensuing everyone understands how these new behaviours have changed processes and practices to create success
All about change
Types and forces
2 types of change
Reactive change
◦ making changes in response to problems or
opportunities as they arise
Proactive change
involves making carefully thought-out changes in anticipation of possible or expected problems or opportunities
also called planned change
Forces for change
Inside forces
employee problems
participation and suggestions
productivity
absenteesima and turnover
job dissatisfaction
unmet needs
manager's behaviour
structural reorganisation
reward systems
leadership
conflict
Outside forces
supplier practices
soical and political pressures
shareholder and customer demands
technological advancements
manufacturing automaton
office automaton
market changes
domestic and international expansion
Recession
mergers and acquisitions
demographic differences
age
gender
immigration
skill level
education
Lewin's force field
force field analysis provides an overview of the balance betwen forces driving change and the forces resisting change in a business
Lewin identified 4 forces to change
Forces for change
Internal vs external forces as mentioned before
Driving forces
Forces resisting change
restraining forces
making change harder
Despite the potential positive outcomes, change is nearly always resisted. A degree of resistance is normal since change is Disruptive, and Stressful
In Lewin's model there are forces driving change and forces restraining it. Where there is equilibrium between the two sets of forces there will be no change. In order for change to occur the driving force must exceed the restraining force.
As the business moves from current conditions into desrired conditions, it will keep running into restraining forces
Change is always with us
• Change is the process of things becoming different
• Managers struggle with change when there is the need to maintain continuity
• But change is continuous
• Change is not binary
Change is the result of dissatifaction withpresent conditions or strategies
Fundamental changes to our markets
The marketplace is becoming more segmented and moving toward more niche products
There are more competitors offering targeted products, requiring faster speed-to-market
Some traditional companies may not survive radically innovative change: disruptive innovation
China, India and other offshore suppliers are changing the way we work
Knowledge, not information, is becoming the new competitive advantage
When do we need to change?
5 stages of decline, pointing to a need to change
Stage 1: Hubris born of success
Stage 2: Undisciplined pursuit of more
Stage 3: Denial of risk and peril
Stage 4: Grasping for salvation
Stage 5: Capitulation to irrelevance or death
Areas where change is often needed
Changing people
Changing technology
Changing structure
Changing strategy
What about culture??
What about tasks??
Leading and managing effective teams
Building effective, efficient and high performing teams
manager's role as team builders
Within their units, managers build and maintain their teams.
Bonding people into cooperative groups
Resolving conflicts within and between these groups so that they can get on with their work
Stepping beyond the authority (controlling) to intercede in situations and coordinate activities responding to the need for contact or human intervention (Mintzberg, 2009, pp. 67-68)
Building an effective team
awareness of groupthink
groupthink
a cohesive group’s blind unwillingness to consider alternatives
Results of groupthink
Preventing groupthink
Groupshift
• A more extreme form of groupthink which occurs when group members’ anonymity encourages them to behave in a more extreme or risky fashion than they would individually
Symptoms of group think
Overestimation of the group
Illusion of invulnerability
Inherent morality of the group
unquestioned belief in the morality of the group can cause members to ignore the consequences of their actions
Close-mindedness
Collective rationalisation of warnings
rationalisation of ideas that oppose the group
Out-group stereotypes
Pressures towards uniformity
Illusion of unanimity
Silence is viewed as agreement
Direct pressure on Dissenters
Self censorship
Self appointed mind guards
size
small team (2-9 members)
advantages
• better interaction
• better morale
disadvantages
• Fewer resources
• Possibly less innovation
• Unfair work distribution
large team (10-16 members)
disadvantages
• Less interaction
• Lower morale
• Social loafing
advantages
• More resources
• Division of labour
cohesiveness
What is cohesiveness?
Team/group cohesiveness is the degree to which members are motivated to remain in a group and share the groupʼs goals
Why do we need to enhance cohesiveness in teams?
Highly cohesive teams perform better
Highly cohesive teams show an increase in self-esteem, increased morale and eventually increased performance
How do we enhance cohesiveness in teams?
Use specific strategies (e.g. keep teams small; recognise contributions, recognise success etc.) (Table 12.5,
Kinicki et al., 2015)
norms
General guidelines that team members follow
• Need to be enforced
motivation through mutual accountability
social loafing
People expend less effort working in a team than if working alone
Higher when individual performance is hidden or difficult to distinguish from the performance of others.
Less prevalent when the task is interesting (more motivated by the work itself)
performance goals and feedback
trust
‘we need to have reciprocal faith in each other’
• Reciprocal faith in others’ intentions and behaviours
roles
A socially determined expectation of how an individual should behave
• Task & maintenance roles
Cooperation (collaboration)
‘we need to systematically integrate our effort’
When the efforts of individuals are systematically integrated to achieve a collection objective
Conflict and learning in teams and groups
handling conflict
Fostering conflict
• Spur competition among employees
• Change the organisation’s culture and procedures
• Bring in outsiders for new perspectives
• Use programmed conflict
• Devil’s advocacy
Dialectic method
5 Conflict handling styles
compromising
little hope for a mutual win-win situation
to achieve temporary settlement
a quick solution is required
as a backup if problem solving is eventually unsuccessful
parties have equal power
middle ground between cooperativeness and assertiveness
The manuvering conciliator
accommodating
harmony is especially important
logic of your position is weak
the other party has much more power
to build social credit for later use
low in assertiveness and high in cooperativeness
The friendly helper
collaborating
the issues are complex and too important to be compromised
to gain commitment
interests are not perfectly opposing
parties have trust/ openess
high in both assertiveness and cooperativeness
The problem solver
avoiding
when others can solve the conflict more effectively
when effort outweighs the benefit of resolution
when both parties need to cool down
when issue is trivial
low in both assertiveness and cooperativeness
when issue can be resolved by itself over time
The impersonal complier
competing
quick resolution is required
other party would take advantage of cooperation
you have a deep conviction about position
need to implement unpopular but necessary actions
high in assertiveness (concern for self) and low in cooperativeness (concern for others)
The tough battler
learning in teams
4 dimensions
Engage in dialogue and discussion
discussion
convergent thinking
best arguments
decision making
dialogue
divergent thinking
suspending assumptions
treating members equally
exploring assumptions
Collective intelligence
Innovative and coordinate action
The ability to ‘play together’
Blocks to this
defensive routines
feeling threatened
hiding ignorance
types of conflict
functional conflict
Benefits the main purposes of the organisation and serves its interests
dysfunctional conflict
Hinders the organisation’s performance or threatens its interests
what is conflict?
Process in which one party perceives that its interests are being opposed or negatively affected by another party
what causes conflict?
scarce resources
adversity
perceived differences
environment
faulty communication
health
Conflict in organisations
Vertical conflict
Hierarchal
Horizontal conflict
same level (peers)
staff-line conflict
different job activites
role conflict
misunderstandings over tasks
3 kinds of conflict
intergroup conflicts
inconsistent goals or reward systems, ambiguous jurisdictions, status differences
multicultural conflict
success or failure, when business is being conducted across cultures, arises from dealing with differing assumptions about how to think and act
personality conflict
Personality clashes, competition for scarce resources, time pressure, communication failures
interpersonal opposition based on personal dislike, disagreement or differing styles
What how and why of teamwork
Teams and groups
Definitions
Teams
– small group of people with complementary skills who are committed to a common purpose, performance goals and approach for which they hold themselves mutually accountable
Textbook definition:Two or more people, Exist to fulfill a purpose, Interdependent: interact and influence each other, Mutually accountable for achieving common goals Perceive themselves as a social entity
Team vs working group
Team
plan together, collaborate, collectively decide future actions
focus on team goals and outcomes
work together on collective tasks
collectively accountable
Working group
individually accountable
share information and different perspectives
focus on individual goals and outcomes
individual tasks which are sometimes done in connections with others
Group (formal and informal)
– two or more freely acting individuals who share collective norms, collective goals and have a common identity
Exist for the benefit of their members, No interdependence or organisational goal, Reasons for existing, Social identity, Goal accomplishment, Drive to bond
Advantages and disadvantages
Advantages
Make better decisions, products, & services
Better information sharing
Increase motivation & engagement
Disadvantages
Individuals better &/or faster on some tasks
Process losses
Social loafing
Teams and informal groups
• Teams are the basic structure through which work is done
• A team is a group of people with sets of skills working to achieve a goal
BUT The same can be said of a group
Mutually exclusive teams
Parallel teams
People play as a team (as in football or an orchestra) – work “in parallel” (Drucker, 2009)
Innovative teams
People play as a “tennis doubles” team – primary positions – work as one ‘covering’ for each other; only the team "performs"; individual members "contribute." (Drucker, 2009)
Fixed position teams
People play on a team– fixed positions they never leave – work “in series” (Drucker, 2009)
non mutually exclusive teams
problem solving team
knowledgable workers who meet as a temporary team top solve a specific problem and then disband
self-managed team
Ways to empower self managed teams
The team works with a whole product or service, not just one part, assigns jobs and task to its members, develops its own quality standards and measurement techniques and handles its own problems with internal and external customers
team members are cross trained on jobs within their and other teams; do their own training, hiring and firing, do their own evaluations of each other, and are paid, at least in part, as a team
Managers make team members accountable for their work, allow them to set their own team goals and let them solve their own work related problems
The team has access to important info and resourcfes inside and outside the organisation, is allowed to coimmunicate and draw support from other teams and departments and set its own rules and policies
workers trained to do all or most of the jobs in a work unit, who have no direct supervisor and do their own day-to-day supervision
cross functional team
people from different departments, such as sales and production who areprusuing a common objective
top management team
The CEO, executives or general managers, vice-presidents and other topdepartment heads whose job is to help the organisation achieve its mission and goals
Continuous improvement team
workers (inlcuing volunteers) and supervisors who meet intermittently to discuss workplace and quality related problems, formerly called a quality circle
virtual team
Members who interact bu computer network to collaborate on projects
work team
types of work teams
Production teams
Day-to-day operations
Project teams
Problem solving
Advice teams
Broaden information base for decision-making
Action teams
speicalised tasks
Members who engage in collective work requiring coordinated effort; their purpose is advice, production, project or action
Stages of team and group development
Tuckman's life cycle of teams
Norming
conflicts resolved, relationships develop, unity emerges
Performing
solving problems and completing assigned task
Storming
individual personalities and roles emerge
Adjourning
preparing for disbandment
Forming
getting oriented and getting acquainted
Organising and managing people
Personality
Jungian approach
Widely applied in work settings and career counselling, coaching
• improves self-awareness
• poor predictor of job performance
MBTI (Myers-Briggs Type Indicator) used for team building and career development
16 personality types over 4 dimensions
Sensing vs intuitive
Perceiving information
Thinking vs feeling
Making decisions
Introversion vs extroversion
Getting energy
Perceiving vs judging
Orienting to extrenal world
Traits: Important traits in organisations
Self-esteem
The extent to which people like or dislike themselves
Self-monitoring
The extent to which people observe their own behaviour and adapt it to external situations
Self-efficacy
Belief in one’s ability to do a task
Emotional intelligence
Ability to monitor your and others’ feelings and to use this info to guide thinking and actions
Locus of control
How much people believe they control their fate through their own efforts
Internal or External
Big 5
Neuroticism
High scorers tend to be more anxious, insecure, depressed, temperamental
Openness
high scorers tend to be imaginative, creative, unconventional, curious, nonconforming, autonomous, perceptive
Extraversion
high scorers tend to be more outgoing, talkative, energetic, sociable, assertive
Conscientiousness
High scorers tend to be organised, disciplined, goal-focused, thorough, methodical, dependable, industrious
Agreeableness
High scorers tend to be more trusting, helpful, good-natured, tolerant, considerate, selfless, generous, flexible
Efficacy of testing in organisations
Personality is a relatively weak predict of performance
• Personality instruments may unfairly discriminate against specific groups of people
• Self-reports are not a valid measure
• May not convey a favourable image of the company
What is personality?
Relatively enduring pattern of thoughts, emotions, and behaviours that characterize a person, along with the psychological processes behind those characteristics
• Predictor of most forms of behaviour
Personality traits are broad concepts that label and help us understand behaviours
The dark triad
Three socially aversive personalities
• Machiavellianism
• Narcissism
• Psychopathy
Studied in tandem as there is overlap
Managing people: the function
Human resource management
The function of HRM
HRM is
Planning for
Attracting
Developing
And retaining an effective workforce
People are “human” resources or a stock of human capital
HRM is the organisational function of managing people
Views people (questionable) as the source of competitive advantage
What does HRM involve?
• Reviewing applications
• Interviewing
• Inducting new employee
• Deciding on employee training
• Evaluating performance
• Managing payroll processes
HRM is performed by both line managers AND HR Specialists
Human resources are strategic assets
• Human capital: the potential of employee knowledge and actions
Capital is a term for financial assets or major assets of a company that requires significant amounts of money to finance or expand
• Knowledge workers: potential of brain workers
• Social capital: potential of strong and cooperative relationships
Recruiting candidates
Strategic HRM
The strategic HRM process
recruit and select people
• Recruiting candidates
The process of locating and attracting qualified applicants for jobs open in the organisation
internal vs external
Internal recruitment: hiring from the inside - External recruitment: hiring from the outside
selection process
• screening of job applicants to hire the best candidate
• background information, interviewing and employment tests
How do you select the right person?
• Background information
• Interviews
• Tests
Fomulate strategic plans
Plan human resources needed
Establish the grand stategy
orient, train and develop
development
educating professionals and managers in the skills
they need to do their jobs in the future
Training
• educating technical and operational employees in
how to better do their current jobs
On-the-job training Off-the-job training
Orientation
helping the newcomer fit smoothly into the job and the organisation
• designed to give employees the information they need to be successful
perform appraisals of people
Performance Management and
Appraisals
Performance management
the continuous cycle of improving job performance through goal setting, feedback and coaching, and rewards and positive reinforcement
Performance appraisal (PA)
Formal appraisal
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informal appraisal
1 more item...
consists of assessing an employee’s performance and providing them with feedback
Establish the mission and the vision
Purpose: Get optimal work performance to help realise company's mission and vision
Human Resource Management is strategic when HR strategies are integrated with the overall strategies of the firm
Human resource planning
• Developing a systematic, comprehensive strategy for understanding current employee needs and predicting future employee needs
• Understanding current employee needs
• Job analysis
• Job description
• Job specification
Predicting future employee needs
human resource inventory
What if HR doesn't plan, or fails?
Labour shortage
Employee impact
• Burnout
• Longer hours
• Increased pressure
• Decreased morale
• Increased turnover
Organisational impact
• Inadequate supply of talent
• Increased overtime
• Production delays
• Poor employee relations
Labour surplus
Employee impact
• Rust-out
• Job insecurity
• Decreased morale
• Reduced performance
• Restricted opportunities
Organisational impact
• Excessive payroll costs
• Underutilised staff
• Retrenchment and downsizing costs
• Loss of competitiveness
Renumeration and benefits
Wages or salaries
Base pay
The foundational or fixed component of employee remuneration - this is generally regarded as the pay best suited to addressing the objectives of staff attraction and retention
Performance-related pay
Also known as incentive plans, these are financial rewards given in recognition of past performance and in order to reinforce and enhance future performance
Plus
Benefits
Financial entitlements that directly supplement the cash base pay, including employer contributions to superannuation, low interest loans, school fee assistance etc.
Promotions, transfers, discipline, & dismissal
Transfer—moving sideways
Disciplining and demotion— the threat of moving downward
Promotion—moving upward
Dismissal—moving out of the organisation
Labour relations
A tripartite system
Employers
Government
Unions
Labour management disputes
Types of industrial action
Unprotected action
This is any industrial action that is not protected, such an action may lead to litigation against an offending party
Unlawful action
This is an industrial action that occurs while there is an existing agreement in place, it can lead to fines and compensation
Protected action
Protects against any further civil action and can only occur when a workplace or enterprise agreement has expired and bargaining representatives are genuinely trying to reach an agreement. it deals with a single enterprise agreement and excludes greenfield (new) sites, it requires 50% support from eligible employees via a ballot and must be compliant with the Fair Work Commision orders
Alternatives to industrial action
Mediation
A neutral third party, a mediator listens to both sides in a dispute and makes suggestions and encoruages them to agree on a solution
Arbitration
The neutral third party listens to both parties in a dispute and makes a decision that will bind both parties
Conciliation
Conciliators may be a Fair Work conciliator , lawyer or a specialist in conflict resolution or labour matters.The conciliator meets with both parties independently and focuses on concessions to assist the parties to resolve the dispute
Managing people: the practice
The practice and function
As a function
Managing people as an organisational function means performing activities and making decisions critical to ensuring that the organisation hires and keeps the right personnel to achieve its goals
This is the Human Resource Management function
As a practice
This is what managers practice on a day to day basis
Managing people as a practice involves leading people inside the unit and linking people outside the unit (Mintzberg, 2009)
Managing with people
• Management has more to do with negotiating interdependence than with exercising authority.
• Being a manager means becoming more dependent on other ‘insiders and outsiders’. The more senior you become, the more you rely on others.
• If we have to rely on others, we have to try to understand them
Managing inside and outside the organisation
Managing people inside the unit
• Energising people
• Developing individuals
• Building and maintaining teams
• Establishing and Strengthening culture
Linking people outside the unit
• Networking
• Representing
• Conveying and Convincing
• Transmitting
• Buffering
People are human beings
People in organizations are “human beings” who need to be influenced NOT controlled
People have different behaviours
Task Performance
• Organisational Citizenship
• Counterproductive work behaviours
• Joining and staying with the organisation
• Maintaining attendance
Management is NOT the control of subordinates
Ethics, sustainability and CSR
Dynamics of ethical breakdowns
Psychology of unethical behaviour
Three psychological dynamics that lead to
ethical lines
Omnipotence
• Cultural numbness
• Justified neglect
“What starts as an ‘innocent’ fudge….can become
the first step toward full-fledged fraud.” Warren BuffeS 2019 leSer to Berkshire Hathaway shareholders
Cheating and ethical breakdowns
Key ethical breakdowns (Bazerman &
Tenbrunsel, 2011)
Indirect blindness
a drug company deflects attention from a price increase by selling rights to another company which imposes the increase
when handling off or outsourcing work, ask whether assignment might invite unethical behaviour and take ownership of the implications
we hold others less accountable for unethical behaviours when it's carried out through a third party
the slippery slope
audiotrs may be more likely to accept a company's questionable statment if the infractions has been accrued over time
b e alert for even trivial ethical infractions and address them immediately, investigate whether a change in behaviour has occurred
we are less able to see other's unehtical behaviour when it's developed gradually
motivated blindness
we overlook the unethical behaviour of others when it's in our best interest to reamin ignorant
baseball officaials fail to notice they created conditions that encourage steroid use
Root out conflicts of interest, simply being aware of them doesn't necessarily reduce their effect on decision making
overvaluing outcomes
a researcher whose fradulent clinal trial saves lives is considered more ethical than the one with a fraudulent trial which led to deaths
examine both 'good' and 'bad' decisions for their ethical implications, reward solid decisions processes, not just good outcomes
we give a pass to unethical behaviour if the outcome is good
ill-conceived goals
e.g. the pressure to maximise billable hours in acct, consulting, law firms may result in unconscious padding
Brainstorm unintended consequences when devising goals and incentives. Consider alternative goals that may be more imporatnt than reward
We set goals and incentives to promote a desired behaviour but it ends up encouraging a negative one
Rationalisation of cheating
The ways we rationalise and justify our behaviour are largely personal and emotional:
oCheating provides useful shortcuts
oCheating arises out of resentment
oCheating seeks to redress perceived unfairness
oCheating is to avoid feeling like a fool
Dynamics behind cheating
Habitual cheating begins with small infractions…:
• Illegally downloading a few songs
• Skimming small amounts from the register
• Lies of omission on taxes
• and grows by increments
As success is rewarded, these ‘small infractions’ can burgeon into a way of life that becomes an ongoing deliberate strategy of deception or fraud
Influencing factors
global context of ethics
Ethical standards are not universal
• Managers and organisations operating in multiple countries and cultural systems should consider:
• how views of ethical behaviour differ and how to deal with those differences
• whose view of ‘ethical’ behaviour should determine organisation actions.
Can ethics be taught?
For
Training provides forum for achieving consensus
Provides opportunities to reflect on ethical beliefs
possible to teach mature adults ethical reasoning and
imagination, discussion, and deliberation
Against
– impossible to teach basic moral capacities to and instill
ethical beliefs in mature adults
• Ethical beliefs are absorbed by us as children from our families
• Ethical beliefs are learnt from religious upbringing
• Ethical beliefs cannot be instilled in mature adults
Structural variables
perfomance appraisal system
rules and regulations
culture
cost constraints
time pressures
reward system
competitve pressure
Pressure contexts
system pressure
stanford prison experiment
Zimbardo and his colleagues (1973) were interested in finding out whether the brutality reported among guards in American prisons was due to the sadistic personalities of the guards (i.e., dispositional) or had more to do with the prison environment (i.e., situational).
According to Zimbardo and his colleagues, the Stanford Prison Experiment revealed how people will readily conform to the social roles they are expected to play, especially if the roles are as strongly stereotyped as those of the prison guards.
Because the guards were placed in a position of authority, they began to act in ways they would not usually behave in their normal lives.
Authority pressure
Milgram experiment - social forces
can easily outweigh personal integrity
Milgram (1963) was interested in researching how far people would go in obeying an instruction if it involved harming another person.
Ordinary people are likely to follow orders given by an authority figure, even to the extent of killing an innocent human being. Obedience to authority is ingrained in us all from the way we are brought up.
Peer pressure
The more the individuals observe peers engaging in unethical behavior, the more likely they are to engage in the same or similar activities (O’Fallon & Butterfield, 2012).
CSR
CSR
The paradox of responsibility
• A corporaCon – “A legal person”
• Who holds responsibility before the society?
• Is a term “corporate responsibility” an oxymoron?
• To whom should a corporaCon/a company be responsible?
How does CSR pay off?
• positive effect on customers
• positive effect on employees’ work attitudes and intentions to quit
• positive effect on employees’ behaviour and work performance
• positive effect on employee retention and quality of job applicants
• positive effect on sales growth, company efficiency, company revenue, share price and profits
CSR and the supply chain
Carroll's global CSR pyramid
Economic responsibility
Do what is required by global capitalism
Be profitable
Legal responsibility
Obey the law
Do what is required by global stakeholders
Bottom of pyramid to top?
The CSR pyramid holds that firms should engage in decisions, actions, policies and practices that simultaneously fulfill the four component parts. The pyramid should not be interpreted to mean that business is expected to fulfill its social responsibilities in some sequential, hierarchical, fashion, starting at the base. Rather, business is expected to fulfill all responsibilities simultaneously. The positioning or ordering of the four categories of responsibility strives to portray the fundamental or basic nature of these four categories to business’s existence in society.
Ethical responsibility
Be ethical
Do what is expected by global stakeholders
Philanthropic responsibility
Be a good global corporate citizen
Do what is desired by global stakeholders
Types of CSR
Sustainability
• ‘Going green’ has all kinds of payoffs for businesses and consumers
• meeting humanity’s needs without harming future generations
Philanthropy
• Making charitable donations to benefit humankind
• ‘He who dies rich dies thus disgraced’ (Andrew Carnegie)
• 136 billionaires have joined Bill and Melinda Gates in the Giving Pledge; a commitment to dedicate a majority of their wealth to philanthropy
Key terms
Corporate social responsibility (CSR)
View that corporations should go above and beyond the law and
the profit objective
Sustainability
Economic development that meets the needs of the present without compromising the future
Social responsibility
A duty to take actions that will benefit the interests of society as well as the organisation
CSR and economic performance
•Positive relationship between social involvement and the economic performance of firms.
Difficulties
• public perceptions (subjective)
• economic performance (more objective, but short term)
• social screening (longer term)
•General conclusion - a firm’s socially responsible actions do not harm its long-term performance.
Corporate governance
The need for independent directors
More attention is being paid to strengthening corporate governance so that directors are clearly separated in their authority from the CEO
The need for trust
We do not have a crisis of ethics in business today. We have a crisis of trust.’̶ Fordham professor Robert Hurley
the system of governing a company so that the interests of corporate owners and other stakeholders are protected
What is ethics?
Ethics, morals and values
Morals
Individual’s own principles regarding right and wrong
Behaviours of a human
Values
Rela;vely permanent and deeply held underlying believes and attitudes
Underpins ethics and ethical behaviour
Ethics
Standards, rules, & principles of right and wrong
Influences our behaviour
Domains, levels and approaches
3 domains of action
Domain of ethics (social standards)
medium degree of explicit control
Domain of free choice (personal standards)
Low degree of explicit control
Domain of codified law (legal standards)
High degree of explicit control
3 levels of ethics
the organisation's ethical stance
The extent to which the firm’s minimum obligations to stakeholders and society will be exceeded
CSR
How the firm puts its ethical stance into practice
Individual ethics
Ethical principles behind an individuals behaviour
4 approaches
Individual
self interest
Justice
impartial standards
Utilitarian
greatest good
choose the action that will produce the greatest benefits and the least harm. The ethical action is the one that provides the greatest good for the greatest number.
Moral rights
fundatmental rights, eg
The right to the truth: We have a right to be told the truth and to be informed about matters that significantly affect our choices.
The right of privacy: We have the right to do, believe, and say whatever we choose in our personal lives so long as we do not violate the rights of others.
The right not to be injured: We have the right not to be harmed or injured unless we freely and knowingly do something to deserve punishment or we freely and knowingly choose to risk such injuries.
The right to what is agreed: We have a right to what has been promised by those with whom we have freely entered into a contract or agreement.
Ethical issues in business
environmental
consumer
goivernance
Employment
Polticial
ethical dilemmas in business: the responsibilities of a manager
Ethical dilemmas are an integral part of managers’ decision making
Managers often deal with ethical dilemmas daily
At times, these dilemmas are obvious
At time they are less obvious
Stages of moral development
Level 3: post conventional
Guided by internal values
Level 2: conventional
Follow expectation of others (social contract)
Level 1: - Pre-conventional
Follow rules to avoid unpleasant consequences
Leadership, management and power
Power
types and sources
French and Raven's sources and types of power
Increasing power
coercive power
Gain authority to use punishment and withhold rewards
expert power
Take all the training and educational programs possible
reward power
Find out what others value and reward them in that way
referent power
• Appeal to follower’s values, ideals, aspiration
legitimate power
Management experience
Positional
reward
results of manager's authority to reward their subordinates
Coercive
results from manager's authority to punish their subordinates and withdraw positive interaction
Legitimate
results from manager's formal positions within the organisation
Personal
Expert
results from one's specialised information
referent
results from one's personal attraction, charisma that others want to emulate, positive personality traits or integrity
Gaining power
• Develop powerful contacts
• Control vital information
• Control lines of communication
• Remember reciprocity
• You catch more flies with honey than you do with vinegar
the dark side of leadership
• Toxic leadership
• Violent leadership
• Bullying in leadership
• Narcissistic leadership
• Unethical leadership
politics and influence
organisational politics
Politics are played to achieve power, either directly or indirectly
• Informal approaches to gaining power through means other than merit or luck.
4 dimensions of political skill
• Social astuteness
• Interpersonal influence
• Networking ability
• Apparent sincerity
Influencing tactics
rational persuation
legitimating tactics
exchange tactics
consultation
pressure tactics
personal appeals
coalition tactics
ingratiating tactics
insirational appeals
What is power?
“The capacity of an individual or group to modify the conduct of other individuals or groups in a manner which they desire and without having to modify their own conduct in a manner which they do not desire” (Tawney,1931:229)
Power is potential influence over
others
Theoretical approaches to leadership
Leadership theory classifications
• Trait
Big 5 and Leadership
Surgency (dominance/extraversion), agreeableness, adjustment (neuroticism), conscientiousness, openness to experience
Surgency and conscientiousness are highly correlated with leadership, followed by openness to experience
Agreeableness is weakly correlated, and adjustment was negatively correlated
Traits of Effective
Leaders
• Dominance
• High energy
• Internal locus of control
• Integrity
• Flexibility
• Self-confidence
• Stability
• Intelligence
• Sensitivity to others
Gender prespectives
women
have communal traits,
more skilled at multitasking, communicating and collaborating
display more relationship leadership
use a more democratic or participative style
Female leadership is associated with more cohesion, cooperative learning and participative communication among team members
men
are more competitive,
more achievement oriented
more assertive
more dominant
as a result, men are more likely to participate and voice their opinions during group discussions and be perceived by others as leaderlike.
display more task leadership
use a more autocratic and directive style
• Behavioural
Achievement motivation theory
• Leader Motive Profile based on Acquired Needs
• Attempt to predict leadership success based on needs
A high need for power, which is socialised; that is, greater than the need for affiliation and with a moderate need for achievement
Leadership behaviour
Attempts to identify differences in behaviour of effective vs ineffective leaders: None were found
Leaders behaviour is based on traits and skills
Behaviour is easier to learn and change than traits
Task vs people oriented
task oriented
establish well defined best work procedures
evaluate and provide feeback on work qualtiy
assign workj and clarigy responsibilities
set goals and deadlines
plan future work activites
people oriented
show interest in others as people
listen to employees
make the workplace more pleasnt
are considerate of employee needs
compliment employees for their work
University of Iowa
University of Iowa research identified two
basic styles of leadership
• Autocratic
Democratic
These are two ends of a spectrum, and style
sits somewhere between the two
University of Michigan
Research to determine leadership
effectiveness
• Identifies two styles of leadership
Job-centered
Employee-centered
Ohio state university (Blake & Mouton's managerial grid 1964)
dimensions
concern for people
Consideration behaviour
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concern for production
• Initiating structure behaviour
1 more item...
Identified four leadership styles on two
distinct dimensions
4 styles
team managment
high concern for people and high concern for production
impoverished managment
low concern for people and low concern for production
country club managment
high conern for people, low concern for production
authority complaince
low concern on eople, high concern on production
• Contingency
tannenbaum & schmidt's leadership continuum theory
runs from autocrative style at 1, to participant style at the 7
the continuum
leader presents ideas and invites follower questions
leader presents tentative decision subject to change
leader presents problem, gets suggested solutions and ,akes the decision
leader makes decision and sells to followers through presentation of why it's a good idea
leader defines limits and asks the followers to make the decision
leader makes decisions and announces to followers without discussion
leader permits followers to make an ongoing decision wihtin defined limits
This theory is based on the idea that many classifications of leadership such as autocratic or democratic are extremes and leadership practices in real life situations lye somewhere between the two extremes.
path goal theory
What a leader must do to achieve high productivity and moral – IN A GIVEN SITUATION
A leader who attempts to clear the path to a for a group member tends to find the group member’s job satisfaction and performance increase
The Path-Goal model is a theory based on specifying a leader's style or behavior that best fits the employee and work environment in order to achieve a goal. The goal is to increase an employee's motivation, empowerment, and satisfaction so they become a productive member of the organization
Fiedler’s Contingency Model
• Fiedler (1951) developed the first situational
leadership
Leadership style reflects personality (trait) and behaviour, and that styles are basically constant
• Two styles are task and relationship
Fiedler's Contingency Theory of Leadership states that your effectiveness as a leader is determined by how well your leadership style matches the situation.
• Integrative
Charismatic leadership
Charisma is a personal trait that
provides referent power
• does not necessarily attempt to change the organisation
• associated with narcissism
Toxic triangle: destructive leaders, followers who fail to challenge internal and external destructive conditions
Authentic leadership
be yourself
apply your valuies
maintain a psitive core self evaluation
develop your own style
wedded to individual conceptions of leadership
circular as analytical device
know yourself
receive feedback from trusted sources
understand your life story
engage in self relection
Transformational leadership
4 elements
encourage experimentation
develop/ communicate a strategic vision
build commitment to the vision
model the vision
Transformational leadership is a theory of leadership where a leader works with teams to identify needed change, creating a vision to guide the change through inspiration, and executing the change in tandem with committed members of a group; it is an integral part of the Full Range Leadership Model.
Leader-member exchange
The quality of the exchange relationship between a follower and a leader
assumptions
• Leaders have limited resources
• Distribute these resources selectively
• Leaders do not interact with followers equally
What is leadership?
Leadership and management ment
Are managers and leaders non synonymous?
managers
• Being a manager: coping with complexity
• Determining what needs to be done – planning and budgeting
• Creating arrangements of people to accomplish an agenda – organising and staffing
• Ensuring people do their jobs – controlling and problem solving
leaders
• Being a leader: coping with change
• Determining what needs to be done – setting a direction
• Creating arrangements of people to accomplish an agenda – aligning people
• Ensuring people do their jobs – motivating and inspiring
Management and leadership skills form
ONE practice
Managment competencies
managing people
managing info
leadership competencies
managing action
components of each of these are included in leadership competencies
Power: the difference between leadership and managment
• Managers rely more on the power of authority needed to hire and fire, reward and punish.
• The power of authority can be taken away from you.
• Leaders rely more on the ability to influence others through inspiring and creating vision
• The ability to inspire cannot be taken away from you.
The complexity of leadership
Leadership is The ability to influence people towards the attainment of goals
• Authentic • Autocratic • Behavioural • Bullying in leadership • Bureaucratic • Charismatic • Distributed • Environmental • Ethical • Facilitative • Female leadership • Laissez Faire • Narcissistic leadership • Participative • Religious • Servant • Situational • Spiritual • Toxic leadership • Transactional • Transformational • Unethical leadership • Violent leadership
Reworking the dfinition of leadership
Leadership is the influencing process of leaders and followers to achieve objectives through change
5 elements of leadership
• Influence
• Change
• People
• Objectives
• Leaders AND Followers
Aspects of control
How of controls
steps in the control process
compare performance to standards
take corrective action if necessary
if yes, take correcrive action, perhaps revise standards
if no, continue work and progress and recognise success
measure performance
establish standards
how managers exercise control
Designing (strategies, structures, systems)
Developing courses of action
Deciding the outcome
Designating (choices)
Defining the issue
Delegating responsibilities
Distributing (resources)
Deeming (performance): imposing targets on people and expecting them to perform accordingly
Controlling through decision making
3 levels of control
6 areas of control
cultural
Structural
Financial
Informational
Physical
Human resources
Tactical
Operational
Strategic
control as power via discipline
Disciplinary power: targets individuals and groups and works through the construction of social and organisational routines
Examples of control via disciplinary practices:
• Workplace monitoring
• Social media monitoring
• Range of technology to control work activities
• Call centre example
establishing standards and measuring performances
keys and barriers to successful control
success and failure in measurement
4 key mechanisms
•Top executives agree on strategy
• Communication is clear
• There is better focus and alignment
• The organisational culture emphasises teamwork and allows risk taking
4 barriers
Objectives are fuzzy
Managers put too much trust in informal feedback systems
Employees resist new measurement systems
Companies focus too much on measuring activities instead of results
The balanced scorecard
A balanced scorecard (BSC) is a visual tool used to measure the effectiveness of an activity against the strategic plans of a company. Balanced scorecards are often used during strategic planning to make sure the company's efforts are aligned with overall strategy and vision.
4 perspectives that stem from vision and strategy
Financials
captial budgeting approach, cost of capital, profits etc
Customer
what is customer satisfaction and how much does the product you deliver meet the need of the customer
Internal business process
what processes are criticle to customer processes - without these processes we would not be able to deliver to the customer
Learning and growth
the innovation, the employees, the people of the balanced scroecard, knoweldge transfer processes etc
quick comprehensive view of company
continuous process - need to be constantly revising and looking at performance and looking to improve it
The strategy map
A strategy map is a diagram that shows your organization's strategy on a single page. It’s great for quickly communicating big-picture objectives to everyone in the company.
The main idea of a strategy map is that each strategic objective in your balanced scorecard is represented by a shape, usually oval. Very rarely are there more than 20 objectives. Tracking too many will dilute your overall message, making your strategy difficult to communicate.
These objective ovals are then grouped into perspectives like “Financial” or “Learning and Growth.” Every organization is different, but most strategy maps have four perspectives, and they’re often similar to the ones shown here.
a visual representation of the balanced scorecard
financial tools for controls
importance of financial controls
many different kinds of financial controls
• Budgets (e.g., sales budget; expenses’ budget)
• Financial statements (e.g. balance sheet; income statement)
• Ratio analysis (e.g. liquidity ratios; return ratios);
• Audit (e.g. external; internal)
Total quality management (TQM)
a comprehensive approach—led by top management and supported throughout the organisation—dedicated to continuous quality improvement, training and customer satisfaction
2 core principles
people orientation
everyone involved in the organisation should focus on
delivering value to customers
improvement orientation
kaisen
kaisen is a Japanese philosophy of small continuous improvement that seeks to involve everyone at every level of the organisation in the process of identifying opportunities and implementing and testing solutions.
5S is a part of Kaisen
sustain
part of daily work and it becomes a habit
standardise
make up the rules, follow and enforce them
shine
clean and inspect or inspect through cleaning
set in order
a place for everything and everything in its place
sort
when in doubt, move it out, red tag technique
PDCA- continuous improvement
Deming's PDCA cycle: the four steps continuously follow each other, resulting in continuous improvement
4 steps
act
on results and findings
plan
the change
do
the change
check
and evaluate the progress
everyone should work on continuously improving work processes
quality management tools and techniques
• Benchmarking
• Outsourcing
• Reduced cycle time
• ISO 9000 and 14000 series
• Statistical process control
• Six Sigma and Lean Six Sigma
Managing control effectively
keys to success: control systems
They are strategic and results oriented
They are timely, accurate and objective
They are realistic, positive, understandable and encourage self-control
They are flexible
barriers
Too much control
Too little employee participation
Overemphasis on means instead of ends
Overemphasis on paperwork
Overemphasis on one instead of multiple approaches
what is management control?
its role and importance
why control?
• To adapt to change and uncertainty
• To discover irregularities and errors
• To reduce costs, increase productivity or add value
• To detect opportunities
• To deal with complexity
• To decentralise decision making and facilitate teamwork
Convincing managers (and nonmanagers) to measure performance
• Put the focus on continuous improvement, not blame or judgment
• Use performance measurement as a tool to reach targets faster
• Showing results of measured performance is a powerful way to propel one's career
Not just an individual’s performance, but also a project’s performance
Managing for productivity
what is productivity?
Outputs divided by inputs where:
Outputs are the goods and services produced • Inputs are labour, capital, materials, energy and technology
The role of control in managment
As a manager, you must operate in a complex environment and make decisions about the four managment functions
Planning, Organsing, Leading, Controlling
to achieve productivity and realise results (financial or organisational goals
Going beyond control
techniques which get the best results
• Establish base points, set goals and measure results
• Use new technology
• Improve the match between employees and jobs
• Encourage employee involvement and innovation
• Encourage employee diversity
• Redesign the work process
what is control?
Monitoring performance, comparing it with goals, and taking
corrective action as needed
Cybernetics
– the science of communications and automatic control systems
in both machines and living things
Self-contained monitoring and correction
social world
the control process practiced in social settings
Social contracts
• Culture
Management is the concurrent activities of planning, organising,
leading, and controlling
control is
• Making something happen the way it was planned
• The power to influence or direct people’s behaviour or the course of events
• A person or thing uses as a standard of comparison: Checking the results
conceptual evolution of management control
• The central idea of scientific management – finding the one best way to do a job performed by one best man
• Emerson (1912) – The Twelve Principles of Efficiency introduced operation control techniques
• Church (1914) and Fayol (1912, 1949) addressed control as one of the main functions of management
• Renewed focus on controlling – ‘bottom line’ and ‘shareholder value’ (Mintzberg, 2009)
