MGMT 110 Lecture 3 Summer0

MGMT 110 Introduction to Management
• LECTURE 3
• Effective Teams (Chp 13)
• The Internal Environment –

Culture and Diversity (Chp 3)
• Ethics (Chp 4)
© John Wiley & Sons Australia
• Effective Teams (Chp 13)

Definition of a Team
• A team is a group of individuals who work

cooperatively to accomplish goals that
couldn’t be achieved without participation
and support.
• A team is different from a group which is a

collection of 2 or more people who
interact, often at a common task

Stages of Group and
Team Development

Behavioural Norms in Groups and Teams
• Norms: standards of behaviour that the group

accepts and expects of its members.
• Norms can not usually be generalised across
groups.
• Four sets of factors contribute to norm conformity:
– Factors associated with the group.
– The initial stimulus that prompts behaviour.
– Individual traits.
– Situational factors.

Informal Leadership in Teams
• Informal leader: A person who engages in

leadership activities but whose right to do
so has not been formally recognised by
the organisation or group.
• Formal leaders and informal leaders may
be the same people but need not be.
• Informal leaders who work towards team/
organizational goals are an asset.

Characteristics of Teams
• Each individual in a team has a part, or a

role to play, to help the group achieve its
goal.
• One of the best known models on team roles

is by Dr Meridith Belbin.
• Belbin argued that understanding team roles

is essential for selecting a balanced group
and for diagnosing a dysfunctional group.

Role Structures

Managing Work Teams at
Skyrail Rainforest Cableway
Dial-Up Broadband
Footage courtesy John Campling

Characteristics of effective teamwork
• Mickan & Rodger (2000) have argued that

effective teams are the result of
characteristics at three organizational
levels -
– Organisational level (structure)
– Team level (processes)
– Individual level (member contribution)
• We are interested mainly in the team and
individual levels at this stage. Why?

• Organisational level (appropriate

structure)
• Clear purpose
• Appropriate culture
• Specified task
• Distinct roles
• Suitable leadership
• Relevant members
• Adequate resources

• Team level (undertaking processes)

• Coordination
• Communication
• Cohesion
• Decision making
• Conflict management
• Social relationships
• Performance feedback

• Individual level (personal contribution)

• Self knowledge
• Trust
• Commitment
• Flexibility

• The Internal Environment –

Culture and Diversity
• Chapter 3

The Organization's Internal
Environment
• An organization's internal environment is
shaped by conditions and forces within the
organization.
• Its major components include -
– owners or trustees (legally responsible)
– the board of directors and governance
structure (may be legally responsible)
– employees and organised labour
and the organization's culture

In the organization you are studying,
who is in charge?
• The owners?
• The management?
• The employees?
• Is it possible that the power in the
organization can be held by more than one
person?
• Why?

The Organization
and Its Environment

Organisational Culture
• Culture is to an organization as personality is to
an individual.
• Orgn culture therefore defies objective
measurement or direct observation. Attempts
have been made to define its characteristics.
• Orgn culture comprises characteristics that
embody a set of values that helps an
organisation’s stakeholders, both internal and
external, understand what it stands for, how it
does things and what it considers important.
• Orgn culture plays a major role in shaping the
behaviour of managers and staff.

Primary Characteristics of Orgn Culture
1. Innovation and risk taking

2. Attention to detail
3. Outcome orientation
4. People orientation
5. Team orientation
6. Aggressiveness
7. Stability

Importance of Orgn Culture
• Links to organizational identity, reputation

and aspirations.
• Orgn Cultures are rarely uniform across an
organisation…there can be subcultures.
• Culture can shape overall effectiveness /
ineffectiveness and long-term success /
failure of an orgn.

Determinants of Organisational Culture
1. The strength and nature of beliefs and

values of the organisation’s founder/s
2. The societal norms of the organisation’s
host country
3. Problems of external adaptation –
incorporating the laws and norms of the
society
4. Problems of internal integration – internal
mission and values established by owners /
managers vs norms of the workforce

What characteristics of
organisational culture appear to be
most important at Ocean Spirit
Cruises?
Dial-Up Broadband
Footage courtesy John Campling

Managing Organisational Culture
• Managing culture is essential but difficult.
Steps include:
– Understanding the determinants of
culture.
– Deciding if the culture needs to be
maintained or changed.
– If the culture is to be maintained,
reinforcing it with symbols, ceremonies,
rewards and modeling.
– If it is to be changed, being clear about
how. External change agents may help.

Managing Diversity in
organizations
• Australia is a diverse country
• Multiculturalism is not new to Australia
– Prior to 1788 the continent was inhabited by more
than 200 Indigenous groups
– First Fleet; Gold Rush
– Post-World War II immigration boom
– International events
– Globalization
• Today, new social policies and management
practices have emerged to foster cohesive links
among all Australians

The Nature of Diversity
• Definitions of diversity vary.

• Diversity is best conceptualised as a
continuum – from homogeneity to
heterogeneity
• Broadly defined diversity exists when
members of a group or organisation differ
from one another along one or more
important dimensions such as age, race,
sex or ethnicity

Dimensions of Workforce Diversity

Equity in Diversity
• Workplaces provide vastly different

experiences for individuals in terms of
access, participation, opportunities and
outcomes.
• Equity is based on the assumption that all
persons have the right to fair treatment,
irrespective of gender, race,
socioeconomic background, impairment
and so on.

The Cause and Impacts of
Increasing Diversity
• Increasing diversity among employees in
Australian organisations reflects social
change.
• Factors that have contributed to the
increase in diversity are:
– changing demographics in the labour
market, changes in the legislative
framework, the globalisation of
markets and the recognition of value in
a diverse workforce.

The Cause and Impacts of
Increasing Diversity

Changing Demographics in the
Labour Market
• A range of factors are changing the
demographics of the contemporary labour
market in Australia.
• These factors include
– changing gender roles
– the strengthening profile of indigenous
people, ethnicity issues,
– the growing participation of people with
disabilities, and
– Australia’s ageing population.

Legislative Changes
• Australia’s legal obligations regarding

diversity arise from ratified treaties made
with the United Nations (UN) and the
International Labour Organisation (ILO).
• Both federal government and the state
governments have anti-discrimination
legislation
• This legislation encourages change in
relation to access, status, power and
rewards for people in the workplace

Globalisation
• Globalisation was initially conceptualised

as the worldwide process of economic and
industrial restructuring.
• Today globalisation is also understood to
include the process of continual change
through the opening up of markets
• Managers now have to deal with diversity
on a global scale

Opportunities and challenges of a
diverse workforce
• Diversity provides both opportunities and
challenges for organizations.
• Diversity can be
– a force for social change
– a source of competitive advantage
– a force for organizational change
– a source of conflict

Experiences of Diversity in Other
Countries
• Managers must be prepared to confront a
variety of diversity issues when they
conduct business in other countries and in
other markets.
• Diversity in:
– New Zealand
– The Pacific Rim
– Japan
– South Africa
– India

Organizations
• Individual strategies for dealing with
conflict related to diversity include:
– Understanding the nature and meaning
of diversity
– Empathising with others
– Overcoming prejudice
– Communicating openly

Organisations

Organisational Approaches to
Equity and Diversity Management
• Organizations play a fundamental role in
managing diversity
• Equal employment opportunity provisions
enshrined in legislation have made
aspects of managing equity and diversity
compulsory
• Approaches and the outcomes of equity
and diversity management vary across
organizations

Organisational Approaches to
Equity and Diversity Management
• The range of approaches to equity and
diversity management include:
– Traditional approaches to diversity
– Legislative approaches to diversity
– Anti-discrimination approach
– Affirmative action approach
– Non-legislative approaches to diversity

Non-legislative Approaches to
Diversity
• Productive diversity – This approach
involves using people’s different skills and
abilities to achieve the best possible
productivity or economic outcome.
• Reasons for using difference include:
– the mutual benefit to both the
organisation and its employees
– the organisation’s competitive
advantage in the marketplace.

Non-legislative approaches to
diversity
• Valuing diversity: The use of mutual
accommodation and adaptation to achieve
best management practice and social
justice.
• Involves:
– Cross-cultural education, including
information sharing, mentoring
– networking, is recommended as a
means of assisting individual and group
change

Organisational Strategies for
Managing Diversity
• Organisations play a fundamental role in
managing diversity through:
– Culture
– Organisational policies
– Organisational practices
– Communication
– Training
• Organisational culture is the most
appropriate context within which diversity
can be addressed.

Towards the Multicultural
Organization
• Organizations can be classified according
to their styles - the way in which they
respond to diversity:
– The exclusionary organization
– The club organization
– The compliance organization
– The affirmative action organization
– The redefining organization

Organisation
• The multicultural organisation:
– supports efforts to expand the notion of
multiculturalism
– reflects the contribution and interests of
diverse cultural groups throughout all of
its activities.
– has achieved high levels of diversity
– can fully capitalise on the advantages
of the diversity
– has few diversity-related problems.

Organization
• The multicultural organization:
– is characterized by pluralism.
– achieves full structural integration
– achieves full integration of informal network.
– is characterized by an absence of prejudice
and discrimination.
– exhibits no gap in organizational identification
based on identity differences.
– has low levels of intergroup conflict

Strategic Management of Diversity
• Organizations need to think strategically
about how they intend to manage diversity.
• Strategic management of equity requires
the recognition of :
– any current inequity to be addressed and
– the outcomes desired before any
implementation takes place
• Strategic planning will enable the
organization to develop a cohesive
approach to diversity management.

• Ethics (Chapter 4)

Learning Objectives
• Learning Objectives:
– Understand the concept of ethics in
contemporary society.
– Discuss the formation of individual ethics.
– Discuss the meaning of the term ‘corporate
ethics’ and specify to whom an organisation
might be considered responsible.
– Describe some of the activities in which an
organisation might engage to manage social
responsibility.

Ethical Challenges
• Behaviour may be lawful but not ethical in intent

or process or effect.
• Examples to consider:
– Taylorism: production without much thought
for the welfare of the worker.
– Henry Ford: exploitative and autocratic
management.
– Sweatshops producing high-priced
sportswear.
– CEO salaries.

Ethical Challenges
Why worry about ethics in organizations?

Moral Development and
the Concept of Ethics

Ethical Theory Classifications
• Consequentialist theories
– eg. John Stuart Mill’s utilitarian ethic,
“the greatest good for the greatest
number”
• Rights, duties and contract-based theories
– eg. Immanuel Kant
• Virtue ethics
– eg. Japanese ‘kaizen’ (continuous
improvement)

Individual Ethics in Organizations
• Ethics:
– An individual’s personal beliefs regarding
what is right and wrong, good or bad.
• Ethical behaviour:
– Behaviour that conforms to generally
accepted social norms.
• Whether behaviour is ethical or not is in the
eye of the beholder. Increasingly, there are
multiple (pluralistic) views on what is ethical
linked to particular cultures.

Determinants of Individual Ethics

Organizational Ethics and Boards of
Directors
• Company directors have a fiduciary
responsibility for shareholders’ funds.
• They need to be vigilant, knowledgeable
and intuitive in order to pick up unethical
or unwise behaviour on the part of
management or other directors.
• Laws, regulations and official publications
aim to assist directors in meeting their
obligations.

Managerial Ethics in Organisations
• Managerial ethics: principles and

standards that guide individual managers
in their work behaviour.
• Three domains of managerial ethics:
– How the organisation treats it
employees.
– How employees treat the organisation.
– How the organisation treats other
economic agents

How an Organisation Treats Its
Employees
• Recruitment
• Selection
• Occupational health and safety
• Wages
• Working conditions (including harassment,
privacy and personal respect)

How Employees Treat Their
Organization
• ‘Rorting the system’.
• Using organizational information
improperly.
• Giving or selling company secrets.
• Conflicts of interest.

How an Organisation Treats Its
Environment
• Environment includes:
– Customers
– Suppliers
– Shareholders
– Competitors
– Dealers
– Trade unions
– Physical environment

Ethics and the Whistleblower
• Whistleblowers: Employees who publicly

disclose illegal or unethical conduct by
others within the organization.
• Principled organizational dissent: The
effort by individuals in the workplace to
protest about and/or change the status
quo because they have a conscientious
objection to current policy or practice.
• Whistleblower protection legislation.

Two major social views of Ethics
Socioeconomics and Economic Rationalism
• There are two major views / perspectives on the role of

companies – the agency perspective and the stakeholder
perspective
– Agency theory is related to neoclassical economics:
Humans are self-interested, rational and materialistic.
Self-interest leads to optimal social outcomes.
– Stakeholder theory is related to socioeconomics:
Humans live in community and there is a moral
dimension to motivation so social benefit, not just
financial sustainability and return, should be
considered.

Corporate Social Responsibility (CSR)
• Corporate social responsibility: The desired

behaviour of organisations in regard to
economic, environmental and social
performance.
• Some managers see adherence to ethical
guidelines as an avoidable cost.
• Corporate social responsibility may be good
for business — companies on the Dow
Jones Global Sustainability Index have
outperformed those on the standard index.

Corporate social responsibility at
Toyota
Dial-Up Broadband

Arguments for Corporate
Social Responsibility
• Business creates problems and should
therefore help solve them.
• Corporations are citizens in our society.
• Business often has the resources
necessary to solve problems.
• Business is a partner in our society, along
with the government and the general
population.
• Making clear and visible contribution to
society may be good for business.

Arguments Against Corporate
Social Responsibility
• The purpose of business in Australian
society is to generate profit for owners.
• Involvement in social programs gives
business too much power.
• There is potential for conflict of interest.
• Business lacks the expertise to manage
social programs.

Corporate Ethics, Social Responsibility
and the Overpaid Executive
• Is it acceptable behaviour to reward
managers at levels 100 times or more that
of the average worker?
• Are packages with golden hellos, golden
handshakes, golden handcuffs and golden
parachutes ethical?
• Research indicates little or no correlation
between executive pay and company
performance.

Managing Ethical Behaviour
• Organizational ethics must start with senior
management.
• Code of conduct: A statement of obligations
imposed by an organization on its
employees or officials, in addition to those
specific duties imposed by legislation. May
also entail ethical education and ethics
committees.
• Code of ethics: A formal written statement of
the values and ethical standards that guide
a company’s actions.

Corporate social responsibility at
Quiksilver
Dial-Up Broadband
Jason Haynes, Director of Sales and Marketing, Quiksilver Australasia

Managing Social Responsibility
• Recurrent questions:
– To whom is the business responsible?
– Who in the business is responsible for
the organization's practices?
• Approaches that organizations may take to
social responsibility:
– Social obstruction, social obligation,
social response, social contribution

Social Responsibility,
Business and Government
• Governments influence organizations
through laws and regulation.
• Business influences government through
lobbying and building relationships with
members or ex-members of government.
• Most Western governments now legislate
about what gifts and benefits politicians
can be given and what must be disclosed.

Formal Organizational dimensions
• Legal compliance: The extent to which an

organization conforms to local, state,
federal and international laws.
• Ethical compliance: The extent to which
the members of an organization follow
ethical (and legal) standards of behaviour.
• Philanthropic giving: The donation by an
organization of financial or other resources
to support charities or other not-for-profit
organizations

Informal Organizational
Dimensions
• Leadership practices determine organizational
ethics.
• Boards of companies and managers have the
responsibility of establishing an ethical and
socially responsible culture in an organization.
• They will determine the level of morality an
organization will possess and ensure that it is
maintained.
• Failure to do so can see the reputation of the
organization damaged, with negative
consequences.

Next Lecture
• Thursday 17/12/09
• 10.30 – 12.30
• 14.G01

MGMT 110 Lecture 3 Summer0

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MGMT 110 Introduction to Management

• Effective Teams (Chp 13)

• The Internal Environment –

• Effective Teams (Chp 13)

© John Wiley & Sons Australia

• A team is a group of individuals who work

• A team is different from a group which is a

© John Wiley & Sons Australia

© John Wiley & Sons Australia

• Norms: standards of behaviour that the group

© John Wiley & Sons Australia

• Informal leader: A person who engages in

© John Wiley & Sons Australia

• Each individual in a team has a part, or a

• One of the best known models on team roles

• Belbin argued that understanding team roles

© John Wiley & Sons Australia

© John Wiley & Sons Australia

Footage courtesy John Campling

© John Wiley & Sons Australia

• Mickan & Rodger (2000) have argued that

© John Wiley & Sons Australia

• Organisational level (appropriate

© John Wiley & Sons Australia

• Team level (undertaking processes)

© John Wiley & Sons Australia

• Individual level (personal contribution)

© John Wiley & Sons Australia

• The Internal Environment –

© John Wiley & Sons Australia

© John Wiley & Sons Australia

© John Wiley & Sons Australia

© John Wiley & Sons Australia

© John Wiley & Sons Australia

1. Innovation and risk taking

© John Wiley & Sons Australia

• Links to organizational identity, reputation

© John Wiley & Sons Australia

1. The strength and nature of beliefs and

© John Wiley & Sons Australia

Footage courtesy John Campling

© John Wiley & Sons Australia

© John Wiley & Sons Australia

• Definitions of diversity vary.

© John Wiley & Sons Australia

© John Wiley & Sons Australia

• Workplaces provide vastly different

© John Wiley & Sons Australia

© John Wiley & Sons Australia

© John Wiley & Sons Australia

© John Wiley & Sons Australia

• Australia’s legal obligations regarding

© John Wiley & Sons Australia

• Globalisation was initially conceptualised

© John Wiley & Sons Australia

© John Wiley & Sons Australia

© John Wiley & Sons Australia

© John Wiley & Sons Australia

© John Wiley & Sons Australia

© John Wiley & Sons Australia

© John Wiley & Sons Australia

© John Wiley & Sons Australia

© John Wiley & Sons Australia