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An Introduction to Management

An Introduction to Management

Managing and the Managers Job

Traditional and Contemporary Issues and


Challenges

CEO
CEO

Philip Knight CEONike

Carly Fiorina CEOHP

Mikio Sasaki President Mitsubishi

Sir David Wilson Director British Museam

George W Bush President USA

John Pope II Pope Ruman Catholic Charch

Howard Schultz CEOStarbuck



Opening Incident
Opening Incident

Marriot International Hotel Chain

CEO: J.W.(Bill) Marriot

911

Half million rooms, under construction 60000 rooms,


franchiser

Suffered more than Hilton and Starwood (Sheraton,


Westin) because urban based

Flexibility in SOP, soothe worried franchisers,


reduce overhead by 20%, Car, Joint venture Bulgari
branded resorts.

Goals
Goals

Profit Starbucks Corp

Discovery of Knowledge University

National Defense Army

Coordination of local charities United way of America

Social Satisfaction Sorority



Organization
Organization

A group of people working together in a structured


and coordinated fashion to achieve a set of goals.

Efficient: Using resources wisely and cost-effective


way.

Effective: Making the right decision and successfully


implement it.

Manger: Someone whose primary responsibility is to


carry out the management process.

Managing and the Managers Job
Managing and the Managers Job

The Management Process

Kinds of Managers

Basic Managerial Roles and Skills

The Nature of Managerial work

The New Workplace



The Management Process
The Management Process

Planning and Decision making

Organizing

Leading

Controlling

Planning and Decision Making
Planning and Decision Making

Planning: Setting an organizations goal and


deciding how best to achieve them.

Decision making: Part of planning process


that involves selecting a course of action from
a set of alternatives.

Example: Carly Fiorina of HP in 1999,


McDonald,s effort of expansion.

Organizing
Organizing
Coordinating activities and Resources
Coordinating activities and Resources

Organizing: Determining how activities and


resources are to be grouped.

Example: Carly Fiorina of HP



Leading
Leading
Motivating and managing people
Motivating and managing people

Leading: The set of processes used to get


members of the organization to get together to
further the interests of the organization.

Example: Carly Fiorina of HP



Controlling
Controlling
Monitoring and evaluating activites
Monitoring and evaluating activites

Controlling: Monitoring organizational


progress toward goal attainment.

Example: Nasa with rocket, Fiorina in HP by


benchmarking for technology, accountable for
profitability and competitiveness

Kinds of Managers
Kinds of Managers

On Levels

Top managers

Middle managers

First-line mangers

Kinds of Managers
Kinds of Managers
On area
Marketing
Financial
Operation
HR
Administrative
Other: Public relation, R&D, Internal consultant,
international

Top managers
Top managers

Designation: president, Vice President, CEO

Function: Create the organizational goals, overall


strategy, and operating policies. Officially represent
the company to external environment by meeting
and so forth.

Time involvement: much in meeting and in


telephone.

Salary: Well paid

Example: Howard Schultz of Starbucks



Middle Managers
Middle Managers

Largest group

Common titles: Plant mangers, operation managers


and division head

Functions: Implementing policies and plans


developed by top mangers, supervise and coordinate
activities of lower level managers. Inventory control,
quality control, equipment failureand minor union
problems.

Recent development: Thin the rank of middle


managers to lower cost and eliminate excess
bureaucracy.

First line mangers
First line mangers

Responsibility: supervise and coordinate the


activities of operating employees

Common titles: Supervisor, coordinators and


office managers.

Time spending: on supervising.

Promotion from: Operating personnel.



Marketing Managers
Marketing Managers

Marketing function- Getting consumers and


clients to buy the organizations products or
services.

Area: New product development, promotion


and distribution.

Example: Carly Fiorina



Financial managers
Financial managers

Dealings: Deal with finacial resources.

Responsibity: Accounting, cash management


and onvestments

Large numbers in banking and insurance.

Stanley ONeil of Merril Lunch



Operation managers
Operation managers

Main task : Creating and managing the


system that create product and services.

Responsibilities: Production control, Inventory


control, quality control, plant layout and
location etc.

Other areas
Other areas

HR Mangers: Hiring and developing employees

Administrative managers: Generalists. Clinics and


hospital administrator.

Public relation manager: Philip Morris Company, The


Dow Chemical company

R&D managers: Monsanto, NASA< Merck and


company.

Internal consultants: Prudential Insurance

International Managers: Eli Lilly and Rockwell



Managrial Roles
Managrial Roles
Ten basic Roles : Henry Mintzberg
Ten basic Roles : Henry Mintzberg

Category

Interpersonal

Informational

Decisional

Role

Figurehead

Leader

Liaison

Monitor

Disseminator

Spokesperson

Entrepreneur

Disturbance handler

Resource allocator

Negotiator

Interpersonal
Interpersonal

Figurehead

Leader

Liaison

Attending ribon-cutting
ceremony of new plant

Encouraging employees
to improve productivity

Coordinating activities
of two project group.
Microsoft and HP

Informational
Informational

Monitor

Disseminator

Spokesperson

Scanning industry
report to say abreast of
development.

Sending memos
outlining new
organizational
initiatives.

Making a speech to
discuss growth plans

Decisional Role
Decisional Role

Entrepreneur

Disturbance handler

Resource allocator

Negotiator

Developing new ideas for


innovation

Resolving conflicts between


two subordinates

Reviewing and revising


budget requests

Reaching agreement with


key supplier or labor union

Managerial Skill
Managerial Skill

Technical Skill: Horst Schulze, CEO of Ritz-Carlton

Interpersonal skill: A.G. Lafley of P&G

Conceptual skill: big picture

Diagnostic skill: Howard Schultz at starbucks

Communication skill:

Decision Making skill

Time management skill: Jeff Bezos, CEO,


amazon.com

The nature of Managerial Work
The nature of Managerial Work

Fought with uncertainty, change, interruption


and fragmented activities.

Mintzbergs study: 59% time on scheduled


meeting, 22% desk work, 10% Unscheduled
meeting, 6% telephone, 3% company
facilities.

Continue to change in complex and


unpredictable manner.

The Science and the Art of
The Science and the Art of
Management
Management

The Science of Management

The Art of Management

Example: Starbucks- drip coffee, expresso-


style

Blend of intuition and personal insight with


hard data and objective facts

Becoming a Manager
Becoming a Manager

The Role of Education: McDonald and Shell


Oil

The Role of Experience: training in P&G,


General Mills and Shell Oil

Effective : Combination of education and


learning

The Scope of Management
The Scope of Management

Managing in Profit-Seeking Organization

Managing in Not-for-Profit Organization



Managing in Profit-Seeking
Managing in Profit-Seeking
Organization
Organization
Large: BP, Toyata, Xerox, Unilever, Levi Struss,
Commercial bank: Citicorp, Fuji Bank, Wells fargo
Insurance: Predential, State Firm, Metropoliton Life
Retilers: Sears, Safeway, Target
Transportation: Delta air lines, Consolidated Frightways
Utilities: Pacific Gas and Electric, consolidated Edision of NY
Communication: CBS, The New York Times
Service : kelly Services, Kindercare Learning Center
Small firm
Small to big: Dell Computer Michael Dell in 84
International Management: Exxonmonil-75%, CocaCola-80%
Headquarters in other countries: Royal Dutch/Shell Group (The Netherland),
Fiat S.p.A.(Italy), Nestle S.A. (Swtzerland), Masssy Fergusion (Canada).
not-for profit: sports federation, branches, federal government< Roman
Catholic Chruch

Managing in Not-for-Profit
Managing in Not-for-Profit
Organization
Organization

Intangible goal: education, social service, public


protection, recreation

Example: United Way of America, The U.S. Postal


Service, Girl Scout of USA, International Olympic
Committee, Art Gallery, museams, Public
Broadcasting System

School and Universities

Health care facilities

Religious organization, terrorist, fraternities and


sororities, organized crime, street gang,
neighbourhood association and households

The New Workplace
The New Workplace
Accompanied by dramatic challenges and amazing opportunities.
Challenges
Diversity: McDonnalds, Apple
Women: Outside 33%in 1950 to 67%, occupations
Ethnic composition :Hispanics and African American, immigrants,
refugees
EEO: disables
Aside from Demographic composition: yuppies, Generation X-ers
Challege: first: attractive environment, second-motivate by incentives,
finally- flexbility
Organizational Change
Information Technology
Complex array of new ways of Organizing: Flat structure

Closing case
Closing case

Southwest airlines

200,000 for 6000 jobs

Retiring CEO- Herb Kellener in 2001

New CEO- Jim Parker, Collen Barrett- COO

Low cost, less expensive, Boeing 737

HR- unionized, no strike, extensive training, no lay-off, pay


hikes when other reducing

911- laid-off 100,000

Analysis reduce expense 29%

Compete with imitator, Customer service business



Traditional and Contemporary Issues
Traditional and Contemporary Issues
and Challenges
and Challenges

The Role of Theory and History in


Management

The Classical Management Perspective

The behavioral management Perspective

The Quantitative Management Perspective

Integrating Perspectives for Managers

Contemporary Management Issues and


challeges.

The Role of Theory and History in
The Role of Theory and History in
Management
Management

The Importance of Theory and History

Why Theory?

Why History?

Precursors to Management Theory
Precursors to Management Theory

Management in Antiquity

Early Management Pioneers: Robert Owen

Charles Babbage

The Classical Management
The Classical Management
Perspective
Perspective

Scientific Management

Administrative Management

Scientific Management
Scientific Management

Frederick W. Taylor

Frank Gilbreth

Lillian Gilbreth

Henry Gantt

Harington Emerson

Administrative Management
Administrative Management

Henry Feyol French Industrialist

Lyndall Urwick British army officer, Mgt.


Consultant & Theorist

Max Weber: German Sociologist

Chester Barnard : President, New Jersey Bell


telephone company

The Classical Management
The Classical Management
Perspective Today
Perspective Today

Summary: Two primary trusts: Scientific


Management--- focused on employees within
the organization and ways to improve their
productivity.
Pioneers:
Administrative Management: on the total
organization and ways to make it more
efficient and effective.
Pioneers:

The Classical Management
The Classical Management
Perspective Today
Perspective Today

Contribution: laid the foundation for


development

Identified important management processes,


functions and skills

Management as a valid subject of scientific


inquiry.

The Classical Management Perspective Today
The Classical Management Perspective Today
Limitations
Limitations

More appropriate for stable and simple


organization.

Universal procedure not appropriate in all


settings.

Viewed employees as tools not resources



Behavioral Management Perspective
Behavioral Management Perspective

Emphasizes individual attitudes and behavior and group


processes.

Pioneers: Industrial psychology movement by father of


Industrial psychology, Hugo Munsterberg, noted German
Psychologist.
Establish Psychological laboratory at Harvard in 1892. Book:
Psychology and Industrial Efficiency.
Suggestion: psychologists could make valuable contribution in
employee selection and motivation
Mary Parker Follett : appreciated the need to understand the
role of behavior in organization.

The Hawthrone Studies
The Hawthrone Studies

Done by: Elton Mayo, a Harvard consultant and his


associates.

Place: Hawthrone plant of Western Electric near


Chicago.

Focus: a series of experiments on behavior in


workplace.

Experiments: In one experiment, researchers


monitored how productivity changed as a result of
change in working condition.

Conclusion: Human element is very important in the


workplace.

The Human Relation Movement
The Human Relation Movement

Workers respond primarily to the social context of


the workplace, including group norms, group
dynamics and interpersonal relationships.

Assumption: Managers concern for workers would


lead to increased satisfaction which result in
increased performance.

Contributors: Abraham Maslow and Douglas


McGregor.

Theory X and Theory Y
Theory X and Theory Y

Developed by : Douglas McGregor

Theme : Theory X a pessimistic and negative


view of workers and best represent the view
of Scientific Management

and theory Y- positive view of workers and


represent The Human relation Approach.
Theory Y is the best philosophy for all
managers.

Theory X
Theory X

People do not like work and try to avoid it.

People do not like work, so managers have to


control, direct, coerce, and threaten
employees to get them work toward
organizational goal.

People prefer to be directed. To avoid


responsibility, and to want security. They have
little ambition.

Theory Y
Theory Y

1. People do not naturally dislike; work is a natural


part of their lives.

2. People are internally motivate to reach objectives


to which they are committed.

People are committed to goals to the degree that


they receive personal rewards when they reach their
objectives.

People will both seek and accept responsibility under


favorable conditions.

People have the capacity to be innovative in solving


organizational problems.

The emergence of Organizational
The emergence of Organizational
Behavior
Behavior

Current behavioral perspective of


Management

The Quantitative Management
The Quantitative Management
Perspective
Perspective

Applies quantitative techniques to


management.

Two broad branches: Management Science


and Operations Management.

Management Science : Focuses specifically


on the development of mathematical models.

Operations Management: Form of applied


Management science.

The system perspective of
The system perspective of
Organization
Organization

By viewing organization as a system,


managers can better understand the
importance of their environment and the levels
of interdependence among subsystems within
the organization. Managers must also
understand how their decisions affect and are
affected by other subsystems within the
organization

The contingency Approach
The contingency Approach

Assumption: Proper management techniques in a


given situation depends upon the nature and
conditions of the situation.

Conclusion: The correct managerial behavior


depends on many variables and managers through
study and practice should develop wide range of
alternative management behavioral patterns and
should learn how and when to apply each one. There
is no one universal solution technique because every
problem is an unique one.

The Environmental Context of
The Environmental Context of
Management
Management

The Environment and culture of Organization

The Ethical and Social Environment

The Global Environment

The Multicultural Environment



The Environment and Culture of
The Environment and Culture of
Organization
Organization

The External Environment

The Internal Environment

The Organizations Culture

Organization-Environment Relationship

The Environment and Organizational


Effectiveness

Opening Incident
Opening Incident

Starbucks New store and Locals fear, Protest

Surprising- sales increases

Starbucks advantage- pricing, new product development and


other area, Size

Measures to reduce head-to-head competition- rental


barriers buyout-peek inside petition to ban

Starbuck-1997 -10003000, 7000-10000, sales double-15%

Competition-improvement, focus on local activities,


preference

Rivalry, industry dynamics



The External Environment
The External Environment

The General Environment: The set of broad


dimensions and forces in an organizations
surroundings that create its overall context.

The Task Environment: Specific organizations


or groups that influence an organization

The General Environment
The General Environment

Economic Dimension

Technological Dimension

Socio-cultural Dimension

Political-legal Dimension

International Dimension

Economic Dimension
Economic Dimension

Weak economic growth

Low unemployment

Low inflation

Technological Dimension
Technological Dimension

Improved information technology

More efficient operating systems



Socio-cultural Dimension
Socio-cultural Dimension

Demographic shifts in number of single adults


and dual income families

Growing concern about health and nutrition



Political-legal Dimension
Political-legal Dimension

Government food standards

Local Zoning climate

General posture toward business regulation



International Dimension
International Dimension

Restaurants in 115 countries

About two-third sales from outside USA



Task Environment
Task Environment

Competitors

Customers

Suppliers

Strategic Partners

Regulators

McDonalds Task Environment
McDonalds Task Environment

Competitors

Burger King

Wendys

Subways

Dairy Queen

McDonalds Task Environment
McDonalds Task Environment

Customers

Individual Customers

Institutional Customers

Suppliers

Coca-Cola

Wholesale Food Processors

Packaging Manufacturers

McDonalds Task Environment
McDonalds Task Environment

Strategic Partners

Wal-Mart

Disney

Foreign partners

Regulator

Food and Drug Administration

Securities and Exchange Commission

Environmental protection Agency



The Internal Environment
The Internal Environment

Owners

Board of Directors

Employees

Physical work environment



The Organizations Culture
The Organizations Culture

The importance of Organizational Culture

Determinants of Organizational Culture

Managing Organizational Culture



The Organizations Culture
The Organizations Culture

The set of values, beliefs, behaviors, customs,


and attitudes that help the member of the
organization understand what it stands for,
how it does things, and what it considers
important.

The importance of Organizational
The importance of Organizational
Culture
Culture

Determine the feel of the organization.


Microsoft, Bank of America, Texas instrument,
southwest Airlines.

Powerful force that can shape the firms


overall effectiveness and long term success.
HP, P&G, Kmart

Determinants of Organizational
Determinants of Organizational
Culture
Culture

Founder: James Cash Penny --- associates,


customer satisfaction, Sam Walton, Ross
Perot and Walt Disney.

Symbols, stories, heros, slogans and


ceremonies. HP, What would Walt have
done?

Corporate success and shared experience:


Hall-mark and kmart.

Managing Organizational Culture
Managing Organizational Culture
By understanding Organizational culture, managers can take appropriate action.
Maintained or changed. The HP ways
Maintained by rewarding and promoting people whose behavior are consistent
Articulating through slogans, ceremonies and so forth.
Maintain effective and change dysfunctional. Shell Oil-story of firms past. GM
strong in product development & internal competition, not enough marketing
and competition.
Problems from merger and Growth of rival factions. Wells Fargo with First
Interstate.
To Change the culture managers must have a clear idea of what they want to do.
Continental Airlines
Bringing outsiders to management positions
Adopting new slogans, telling new stories, staging new ceremonies and breaking
with tradition.

Organization-Environment
Organization-Environment
Relationships
Relationships

How environments affect Organization

How Organization adapt to their Environment



How environments affect Organization
How environments affect Organization
Environmental Change and Complexity
Uncertainty
Competitive forces: Five Competitive forces
1. The threat of New Entrant
2. Competitive rivalry,
3. The Threat of substitute product
4. The power of buyer
5. The power of supplier

How Organization adapt to their
How Organization adapt to their
Environment
Environment

Strategic Response

Merger, Acquisition and Alliances

Information Management

Organization Design and Flexibility

Direct Influence

The Environment and Organizational
The Environment and Organizational
Effectiveness:
Effectiveness:
Effectiveness involves doing the right things.
Effectiveness involves doing the right things.
Given the interaction between Organization and
Given the interaction between Organization and
environment, Effectiveness is related to how well
environment, Effectiveness is related to how well
an organization understand, reacts to and influence
an organization understand, reacts to and influence
its environment.
its environment.

Models Organizational Effectiveness

Examples of Organizational Effectiveness



Examples of Organizational
Examples of Organizational
Effectiveness
Effectiveness

Fortunes Most Admired


Companies (2007)

Dell

General Electric

Starbucks

Wall-Mart Stores

Southwest Airlines

Business Weeks best


performing Companies
(200 )

The Ethical and Social Environment
The Ethical and Social Environment

Individual Ethics in Organization

Emerging Ethical Issues in Organization

Social Responsibility and Organization

The Government and Social Responsibility

Managing Social Responsibility



Individual Ethics in Organization
Individual Ethics in Organization

Managerial Ethics

Ethics in an Organizational Context

Managing Ethical Behavior



Individual Ethics in Organization
Individual Ethics in Organization

Ethics: An individuals personal belief about


whether a behavior, action or decision is right
or wrong.

Ethical Behavior: Behavior that conform to


generally accepted social norms

Unethical Behavior: Behavior that does not


conform to generally accepted social norms.

Managerial Ethics
Managerial Ethics

Managerial Ethics: Standards of behavior that


guide individual managers in their work.

Ethics in an Organizational Context
Ethics in an Organizational Context

Each managers individual ethics

Message sent by organizational practices



Managing Ethical Behavior
Managing Ethical Behavior

Leadership

Culture

Training

Codes

Guidelines

Emerging Ethical Issues in Organization
Emerging Ethical Issues in Organization

Ethical Leadership: Roles in shaping Ethical norms


and culture

Ethical Issues in Corporate Governance: Focuses on


the need for BOD to maintain appropriate oversight
of senior management

Ethical issues in Informational Technology: Relates


to individual privacy, and potential abuse of
organizations information technology by individuals

Social Responsibility and
Social Responsibility and
Organization:
Organization: Social responsibility is the set of obligations an Social responsibility is the set of obligations an
organization has to protect and enhance the society in which it functions organization has to protect and enhance the society in which it functions

Social Responsibility:

Areas of social responsibility: Organizational


Stakeholders
The Natural Environment
General Social Welfare

Arguments for and against social


responsibility

Arguments for and against social
Arguments for and against social
responsibility
responsibility

For:

1. Business create problems and should


therefore help to solve them.

2. Corporations are citizens in our society.

3. Business often has the resources


necessary to solve problems.

4. Business is the partner in our society along


with Government and general population

Arguments for and against social
Arguments for and against social
responsibility
responsibility

Against

1. The purpose of business in USA society is


to generate profit for owner.

2. Involvement in social programs gives


business too much power.

3. There is potential for conflicts of interest.

4. Business lacks the expertise to manage


social problems

Organizational Approaches to Social
Organizational Approaches to Social
Responsibility
Responsibility

Obstructive Stance

Defensive Stance

Accommodative Stance

Proactive Stance

Government influence the organization
Government influence the organization

1. Direct Regulation

2. Indirect Regulation

Organization Influence Government
Organization Influence Government

Personal contacts and network

Lobbying

Political action Committee

Favor and other influence tactics



Managing Social responsibility
Managing Social responsibility

Formally

1. legal compliances

2. Ethical compliances

3. Philanthropic giving

Informally

1. Organization leadership and culture

2. Whistle blowing

The Global Environment
The Global Environment

The nature of International Business

The Structure of Global Economy

Environmental Challenges of
International Business

Competing in a Global Economy



The nature of International
The nature of International
Business
Business

Meaning

Trends

Managing the process of Globalization

Competing in a global Market



Meaning of International
Meaning of International
Business
Business

Domestic business

International Business

Multinational Business

Global Business

Trends of International business
Trends of International business

Managing the process of Globalization
Managing the process of Globalization

Exporting and Importing

Licensing

Strategic Alliance

Joint Venture

Direct Investment

Advantages & disadvantages of
Advantages & disadvantages of
Importing & Exporting
Importing & Exporting

Advantages

Small Cash Outlay

Little Risk

No adaptation
necessary

Disadvantages

Tariffs and taxes

High transportation
costs

Government restriction

Licensing
Licensing

Advantages

Increased profitability

Extended Profitability

Disadvantages

Inflexibility

Competition

Strategic Alliances/ Joint venture
Strategic Alliances/ Joint venture

Advantages

Quick Market Entry

Access to materials and


technology

Disadvantages

Shared Ownership

Direct Investment
Direct Investment

Advantages

Enhanced Control

Existing infrastructure

Disadvantages

Complexity

Greater Economic and


Political Risk

Greater Uncertainty

The Structure of Global Economy
The Structure of Global Economy

Mature market economy and system

High potential/ High Growth Economies

Other Economies

The role of GATT and WTO



Environmental Challenges of International Management Environmental Challenges of International Management

The Economic Environment

1. Economic System

2. Natural Resources

3. Infrastucture

Political/ legal environment

1. Stability of Govt.

2. Incentives

3. Control

4. Economic Communities

Cultural environment

1. Values, symbols, belief and language

2. Individual behavior across culture



Competing in Global Economy
Competing in Global Economy

Globalization and Organization size

Managing Challenge in Global Economy



Globalization and Organization size
Globalization and Organization size

Multinational Corporation

Medium size Organization

Small organization

Managing Challenge in Global
Managing Challenge in Global
Economy
Economy

Planning and decision making

Organizing

Leading

Controlling

The Multicultural Environment
The Multicultural Environment

The Nature of Diversity and Multiculturalism

Diversity and Multiculturalism in Organization


Trends in Diversity and Multiculturalism
Dimensions of Diversity and Multiculturalism

Effects of Diversity and Multiculturalism in Organization


Diversity, Multiculturalism and Competitive advantage
Diversity, Multiculturalism and Conflict

Managing Diversity and Multiculturalism in Organizations


Individual Strategies
Organizational Approaches

Toward the Multicultural Organization



The nature of multiculturalism and
The nature of multiculturalism and
Diversity
Diversity

When the people comprising an organization


represent different cultures, their differences
in values, beliefs, behaviors, customs, and
attitudes reflect multiculturalism.

Diversity exists in a community of people


when its members differ from one another
along one or more important dimensions.

Trends in Diversity and
Trends in Diversity and
Multiculturalism
Multiculturalism

All organizations are becoming more diverse


and multiculturalism.

Reasons:

Changing demographics in labor force

Legislation and legal action

Increased awareness that diversity improves


the quality of workforce

The Globalization Movement



Dimensions of diversity
Dimensions of diversity

Age distribution

Gender

Ethnicity

Other

Effects of diversity and
Effects of diversity and
Multiculturalism in Organization
Multiculturalism in Organization

Source of Competitive Advantage

Source of Conflict

Source of Competitive Advantage
Source of Competitive Advantage

Cost Argument

Resource acquisition argument

Marketing argument

Creativity argument

Problem solving argument

System flexibility argument



Source of Conflict
Source of Conflict

Favor to diversity status

Misunderstood, misinterpreted, or
inappropriate interaction

Cultural difference

Fear, distrust and individual prejudice



Managing Diversity and
Managing Diversity and
Multiculturalism
Multiculturalism

Individual Strategy
Understanding
Empathy
Tolerance
Willingness to Communicate

Organizational Approaches
Organizational Policies
Organizational practices
Diversity and Multicultural Training
Organizational Culture

Toward the Multicultural Organization
Toward the Multicultural Organization

Pluralism

Full structural Integration

Full integration of Informal network

Absence of prejudice and discrimination

No gap in organizational identification based o


cultural identity group

Low level of intergroup conflict



Planning and Decision making
Planning and Decision making

Basic Elements of Planning and Decision


Making

Managing Strategy and strategic Planning

Managing decision Making and Planning


Solving

Managing new venture formation and


Entrepreneurship

Basic Elements of Planning and
Basic Elements of Planning and
Decision making
Decision making

Decision making and Planning Process

Organizational Goals

Organizational Planning

Tactical Planning

Operational Planning

Managing Goal-setting and Planning process



Opening incident
Opening incident
Fickle customer, rapid changes- apparel industry
Fashion designer- Ralph Lauren, Donna Karan< Prada, Gucci, Fendi.
Coach- different approach- customers choice-competitive advantage-sells
$865/sft-industry-$200-$300
Handbag-high quality-not stylish-Owner Sara Lee Corp.-Lack mgt. attention-
slowing sales
CEO Lew Frankfort-failing- elite and saver- balance
Planning and forecasting- tools- trends-effectiveness-risk-sales data each
store daily-season several times-spend $2 million
New product- 12 market test-another 12 market before six moths- monitored
and adjustment
Another designer- Krakoff- updates-monthly new products- outsourcing
Diversified- shoe, furniture, jewelry even Coach car
Increases

Decision making and Planning
Decision making and Planning
Process
Process

Fig 7-1

Organizational Goals
Organizational Goals

Purposes of Goals

Kinds of Goals

Responsibilities of setting goals

Managing multiple goals



Purposes of Goals
Purposes of Goals

To provide guidance and direction

To facilitate planning

To inspire motivation and commitment

To promote evaluation and control



Kinds of Goals
Kinds of Goals

On the basis of Level

Mission

Strategic

Tactical

Operational

Goals for different area:

Operation

Marketing

Finance

For different time frame

Long term

Intermediate term

Short term
Fig 7-2
Strategic Plan: general plan
outlining decisions of resource
allocation, priorities and action
steps necessary to reach
strategic goals.
Tactical plan: achieving tactical
goals and developed to
implement parts of a strategic
plan
Operational plan : to carry out
tactical plans to achieve
operational goals

Types of Planning
Types of Planning

Responsibilities for setting goals
Responsibilities for setting goals

Each manager generally has responsibilities


of setting goals that corresponds to his or her
level in the organization

Managing multiple goal
Managing multiple goal

Sometimes experience conflicts or


contradictions among goals.

To address such problems, managers must


understand the concept of optimization.

Optimizing is the balancing and reconciling


possible conflicts among goals.

Organizational Planning
Organizational Planning

Kinds of organizational Plans

Time frame for planning

Responsibility for planning

Contingency planning and crisis management



Kinds of organizational Plans
Kinds of organizational Plans

General:

Strategic

Tactical

Operational

Time frame for planning
Time frame for planning

Long range planning

Intermediate Plans

Short range Planning



Responsibilities for Planning
Responsibilities for Planning

Planning staff

Planning task force

Board of directors

Chief Executive Officer

Executive committee

Line Management

Contingency Plan and Crisis
Contingency Plan and Crisis
Management
Management

The determination of alternative courses of action to


be taken if an intended plan is unexpectedly
disrupted or rendered inappropriate.

Crisis management, a related concept, is the set of


procedures the organization uses in the event of a
disaster or other unexpected calamity

Example: Y2K bug in 1990s, 911



Tactical Planning
Tactical Planning

Developing tactical Plan

Executing tactical plan



Developing tactical Plan
Developing tactical Plan

Recognize and understand overarching


strategic plans and tactical goals.

Specify relevant resources and time issues

Recognize and identify human resource


commitments

Coca-Cola

Executing tactical plan
Executing tactical plan

Evaluate each courses of action in light of its goal

Obtain and distribute information and resources

Monitor horizontal and vertical communication and


integration of activities

Monitor ongoing activities for goal achievement.

Walt Disney Company




Operational Planning
Operational Planning
Single use plan: Developed to
carry out a course of action not
likely to be repeated in future.
Program: Single use plan for a
large set of activities
Policy: Single use plan of less
scope and complexity than a
program
Standing Plan: Developed for
activities that recur regularly over
a period of time.
Policy: specifying the
organizations general response to
a designated problem or situation
Standing Operating Procedure:
Outlining steps to be followed in
particular circumstances.
Rules and Regulation: Describing
exactly how specific activities are
carried out.

Managing Goal setting and Planning
Managing Goal setting and Planning
processes
processes

Barriers to goal setting and planning

Overcoming the barriers

Using goals to implement plans



Barriers to goal setting and planning
Barriers to goal setting and planning

Inappropriate goals

Improper reward system

Dynamics and Complex environment

Reluctance to establish goals

Resistance to change

Constraints

Overcoming the barriers
Overcoming the barriers

Understand the purpose of goals and planning

Communication and participation

Consistency, revision and Updating

Effective reward system



Using goals to implement plans
Using goals to implement plans

MBO

The nature and purpose of formal goal setting

The goal setting process

The effectiveness of formal goal setting



Managing Strategy and Strategic
Managing Strategy and Strategic
Planning
Planning

The Nature of Strategic Management

Using SWOT Analysis to formulate Strategy

Formulate Business Level Strategies

Implementing Business Level Strategies

Formulating Corporate Level Strategies

Implementing Corporate Level Strategies

International and Global Strategies



Opening Incident
Opening Incident

Nike 1964-1990s-biggest success

Innovator-waffle-sole shoe, air cushion-technical shoe design-


sportswear fashionable, casual street wear

Picked 1997-sales 50%-profits$795, 1999-$451 (p)

Phil Knight $9b company with$5b Mgt

Price $150-$300-above teenager- biggest

Saturated market athletic shoe

Hire top manager from outside the shoe industry-from running


and basketball to soccer and cycling and golf apparel

Two co presidents-Parker and Dension

Satisfy customers-sales rises-recover former glory

Clouds-1
st
-accusation of exploitation third world workwrs-
boycott-2
nd
- Footlocker-$100-sell through other outlet-share
price reduced

The Nature of Strategic Management
The Nature of Strategic Management

The Components of Strategy

Types of Strategic Alternatives

Strategy Formulation and Implementation



The Components of Strategy
The Components of Strategy

Strategy: A comprehensive plan for accomplishing


the organizational goals.

Strategic Management: A comprehensive and


ongoing process aimed at formulating and
implementing effective strategies.

Effective strategies address three organizational


issues: distinctive competence, scope and resource
development.

Distinctive competence: An organizational strength


possessed by only a small of competing firms

Types of Strategic Alternatives
Types of Strategic Alternatives

Business level strategies: The set of strategic


alternatives from which an organization chooses as it
conducts business in a particular industry or market.

Corporate level strategies: The set of strategic


alternatives from which an organization chooses as it
manages its operation simultaneously across several
industries and several markets.

Strategy Formulation and
Strategy Formulation and
Implementation
Implementation

Strategy Formulation is the set of processes involved


in creating and determining the strategies of the
organization

Strategy Implementation is the process of executing


strategies

Deliberate strategy: a plan of action that an


organization chooses and implements to support
specific goals

Emergent strategy: a pattern of action that develops


over time in an organization in the absence of
mission and goals or despite mission and goals

Using SWOT Analysis to formulate
Using SWOT Analysis to formulate
Strategy
Strategy

Evaluating an Organizations Strength

Evaluating an Organizations Weakness

Evaluating an Organizations Opportunities


and threats

SWOT analysis
SWOT analysis

SWOT analysis help the organization to


chooses strategies that support its mission
and (1) exploit its opportunities and strength
(2) Neutralize its threats and (3) avoid its
weakness.

Formulate Business Level Strategies
Formulate Business Level Strategies

Porters Generic Strategies

The Miles and Snow Typology

Strategies based on the product life cycle



SWOT analysis
SWOT analysis
Mission
An Organizations Fundamental Purpose
SWOT Analysis
To formulate startegies that support the Mission
Internal Analysis External Analysis
Strength Opportunities
Weaknesses Threats
Good startegies
Those that support the missiom and

Exploit opportunities and strength

neutralize threats

Avoid weakness

Porters generic Strategies
Porters generic Strategies
Michel porter has proposed three generic strategies. Each of these Michel porter has proposed three generic strategies. Each of these
strategies are presumed to be widely applicable to different strategies are presumed to be widely applicable to different
competitive situations. competitive situations.
Strategy Type Definition Example
Differentiation Distinguish product and services
Rolex
Mercedes- Benz
Nikon
Overall cost
Leadership
Reduce manufacturing
And other cost
Timex
Hyundai
Kodak
Focus
Concentrate on specific
regional market, product market
or group of buyer
Tag Heuer
Fiat, Alfa Romeo
Polaroid

The Miles and Snow Typology
The Miles and Snow Typology
Four strategic types of organization. Three of these- the prospector, Four strategic types of organization. Three of these- the prospector,
the defender, and the Analyzer- can be effective in certain the defender, and the Analyzer- can be effective in certain
circumstances. The fourth type the reactor- an ineffective approach to circumstances. The fourth type the reactor- an ineffective approach to
strategy strategy
Strategy Type Definition Example
Prospector
Innovative And growth oriented,
searches for new market and
new growth opportunities,
Encourages risk taking
Amazon.com
3M
Rubbermaid
Defender
Protects current market,
maintain stable growth, serves
Current customers
BIC
eBay
Mrs. Fields
Analyzer
Maintain current markets and
Current customer satisfaction
With moderate emphasize on
innovation
Dupont
IBM
Yahoo
Reactor
No clear strategy, reacts to
Changes in the environment,
Drifts with events
International Harvester
Kmarts
Montgomery Ward

Implementing Business Level
Implementing Business Level
Strategies
Strategies

Strategy implementation at the business level takes


place in the area of marketing, sales, accounting and
finance and manufacturing.

Culture also influence strategy implementation.

Implementation of Porters generic strategies require


different emphasize in each of these organizational
areas

Implementation of Miles and Snows strategies affect


organizational structure and practices.

Formulating Corporate level Strategies
Formulating Corporate level Strategies

Single-product strategy

Related Diversification

Unrelated Diversification

Bases of relatedness in implementing
Bases of relatedness in implementing
related diversification
related diversification

Basis of relatedness Examples

Similar technology Philips, Boeing, Compaq

Common distribution Nabisco, Philip Moris, P&G


And marketing skill

Common brand name Disney, Universal


and reputation
* Common Customer Merck, IBM

Formulating Corporate level Strategies
Formulating Corporate level Strategies

A corporate level strategy is the plan an organization uses to


mange its operations across several businesses.

A firm does not diversify its implementing a single-product


strategy.

An organization pursue a strategy of related diversification


when it operates a set of businesses that are somehow
linked.

Related diversification reduces the financial risk associated


with any particular product, reduces the overhead costs of
each business and enable the organization to create and
exploit synergy.

An organization pursue an unrelated diversification when it


operated a set of businesses that are not logically associated
with one another.

Implementing Corporate Level
Implementing Corporate Level
Strategies
Strategies

Becoming a diversified firm

Managing Diversification

Becoming a diversified firm
Becoming a diversified firm

Three ways:

1. Developing new product internally

2. Replacing suppliers (backward integration)


or customers (foreword integration)

3. Engaging in merger or acquisition.



Managing Diversification
Managing Diversification

Through the organization structure

Through Portfolio Management

BCG Matrix classifies as Dogs, Cash cows, Question


marks and Stars according to market share and
market growth rate.

The GE Business screen classifies as Winners,


Losers, Question marks, average business or profit
producers according to industry attractiveness and
competitive positions.

The BCG Matrix
The BCG Matrix
Question marks
Stars
Dogs
Cash Cows
High Low
Relative market share
Low
High
M
a
r
k
e
t

G
r
o
w
t
h

R
a
t
e

The GE Business Screen
The GE Business Screen
Winner Winner Question Mark
Winner Average Business Loser
Profit Producer Loser Loser
Good Medium Poor

High

Medium
Low
I
n
d
u
s
t
r
y

a
t
t
r
a
c
t
i
v
e
n
e
s
s
Competitive position

The GE Business Screen
The GE Business Screen

Competitive position

1. Market share

2. Technological Know-
how

3. Product Quality

4. Service Network

5. price
Competitiveness

6. operating Costs

Industry Attractiveness

1. Market growth

2. Market size

3. Capital requirement

4. Competitive intensity

International and Global Strategies
International and Global Strategies

Developing international and Global strategies

Strategic alternatives for international


Business

Developing international and Global
Developing international and Global
strategies
strategies

Three additional sources of Competitive


advantage unavailable to domestic firms:
Global efficiencies, multi market flexibility and
worldwide learning.

Strategic alternatives for international
Strategic alternatives for international
Business
Business

1. Home replication strategy

2. The multi domestic strategy

3. The global strategies and

4. Transnational strategies

Have advantages and disadvantages in terms


of its ability to help firm be responsible to local
circumstances and to achieve the benefits of
global efficiencies

Managing Decision Making and
Managing Decision Making and
problem solving
problem solving

The Nature of decision making

Rational perspective on decision Making

Behavioral aspects of decision making

Group and Team decision making in an


Organization

The Nature of decision making
The Nature of decision making
Decision making Defined: Decisions are the integral
parts of all managerial activities, but they are perhaps
most central to the planning process. Decision making
is the act of choosing one alternative from among a set
of alternatives.
Types of Decisions: Programmed and Non
programmed.
Decision Making Conditions: Certainty, risk and
uncertainty.

Rational perspective on decision
Rational perspective on decision
Making
Making

The Classical Model of decision Making: Rational perspective


on decision making rest on the classical model. Assumptions:
managers have complete information and they will behave
rationally.

Steps in rational decision making: 1. recognizing and defining


the problem
2. Identifying alternatives
3. Evaluating alternatives
4. Selecting the best alternative
5. Implementing the chosen alternative
6. Following up and evaluating the effectiveness of the
alternative after it is implemented

Behavioral aspects of decision making
Behavioral aspects of decision making

The administrative model: Behavioral aspects rely on


the administrative model. Recognize- managers will
have incomplete information and they will not always
behave rationally, concept of bounded rationality and
satisfying.

Political forces in decision making

Intuition and Escalation of Commitment

Risk propensity and Decision Making

Ethics and decision making



The administrative model
The administrative model

Political forces in decision making: Political activities


by coalitions, managerial intuition, and the tendency
to become increasingly committed to a chosen
course of action are all important.

Risk Propensity: also an important behavioral


perspective on decision making.

Ethics: Also affect how managers make decisions



Group and Team decision making in an Organization
Group and Team decision making in an Organization
To help enhance decision making effectiveness
To help enhance decision making effectiveness
managers often use interacting, Delphi, or Nominal
managers often use interacting, Delphi, or Nominal
group or team
group or team

Forms of Group and Team Decision Making

Advantages of Group and Team Decision


Making

Disadvantages of Group and Team Decision


Making

Making Group and Team Decision Making


Process: Number of strategies

Managing New venture Formation and
Managing New venture Formation and
Entrepreneurship
Entrepreneurship

The nature of entrepreneurship

The role of entrepreneurship in society

Strategy for entrepreneurial Organization

Structure for entrepreneurial Organization

The performance of entrepreneurial


Organization

The nature of entrepreneurship
The nature of entrepreneurship
* Entrepreneurship is the process of planning,
organizing, operating and assuming the risk of a
business venture.

An entrepreneur is someone who engages in


entrepreneurship.

In general entrepreneurs start small business.

Small businesses are important source of innovation,


create numerous jobs and contribute to the
successes of large businesses

Strategy for entrepreneurial
Strategy for entrepreneurial
Organization
Organization

In choosing strategies entrepreneurs have to consider the


characteristics of the industry in which they are going to
conduct businesses.

A small business must also emphasize its distinctive


competencies. Small business generally have some
distinctive competencies that they should exploit in choosing
their strategies.

Small businesses are usually skilled in identifying niches in


established markets, identifying new markets

Acting quickly to obtain first mover advantages.

Small businesses are not usually skilled at exploiting


economies of scale.

Business Plan
Business Plan

Once an entrepreneur has chosen a strategy,


the strategy is normally written down in a
business plan.

Writing a business plan forces an


entrepreneur to plan thoroughly and to
anticipate problems that might occur.

Trends in small business start-ups
Trends in small business start-ups

Emergence of E-commerce

Crossover from big business

Opportunities for minorities and women

Better survival rates



Reasons for failure
Reasons for failure

Managerial incompetence or inexperience

Neglect

Weak control system

Insufficient capital

Structure for entrepreneurial
Structure for entrepreneurial
Organization
Organization

With a strategy and business plan in place,


entrepreneurs must choose a structure to
implement them.

All organizational structure may be used. In


addition, the entrepreneur has some unique
structural choice to make.

Reasons for success
Reasons for success

Hard work, drive and dedication

Careful analysis of market conditions

Managerial competence

Luck

4. The organizing Process
4. The organizing Process

11. Basic Elements of Organizing

12. Managing Organization Design

13. Managing organizational Change and


Innovation

14. Managing Human resources in the


organization

Organization
Organization

Organization: How best group organization


activities and resources.

Organizational Structure: The set of elements


that can be used to configure an organization

11. Basic Elements of Organizing
11. Basic Elements of Organizing

Designing Job

Grouping Jobs: Departmentalization

Establishing Reporting relationship

Distributing Authority

Coordinating Activities

Differentiating between Positions



Designing Job
Designing Job
The determination of an
The determination of an
individuals work-related responsibilities
individuals work-related responsibilities

1. Job Specialization: The degree to which the


overall task of the organization is broken down and
divided into smaller component parts.

Alternatives:

Job Rotation

Job Enlargement

Job enrichment

Job characteristics Approach

Work team

Job Specialization
Job Specialization
The degree to which the
The degree to which the
overall task of the organization is broken down and
overall task of the organization is broken down and
divided into smaller component parts
divided into smaller component parts

Benefits:

1. Small and simple task

2. Decreases transfer time

3. Easier to develop specialized equipment to


assist with the job

4. Training in relatively low cost.



Job Specialization
Job Specialization

Negative Consequences:

Boredom and monotony

Absenteeism, inferior quality of work

Anticipated benefits may not always occur



Job Rotation
Job Rotation

Involves systematically moving employees


from one job to another

Job enlargement
Job enlargement

Involves giving the employee more task to be


performed

Job enrichment: involves increasing both the


number of tasks the worker does and control
the worker has over the job

Job Characteristics approach
Job Characteristics approach
Suggests that jobs should br diagonsed and improved
along the five core dimensions taking into account
both the work system and employee performance
Fig 11.1
Five core dimensions are:
Skill variety
Task variety
Task significance
Autonomy
Feedback

Work team
Work team

Allows an entire group to design the work


system it will use to perform an interrelated
set of tasks

Departmentalization
Departmentalization

The process of grouping jobs according to


some logical arrangement.

Rationale: Size

Bases of Departmentalization
Bases of Departmentalization
Common Bases of departmentalization:
Function
Product
Customer
Location
Other: large organizations employ multiple bases
of departmentalization at different levels.Time

Computer Software
Finance Marketing
President
Manufactuing
Marketing
Finance Design
Dallas Phonix
Consumers Industrial
Northeast US
Central US
Southwest US Northwest US
St. Louis Chikago

Establishing Reporting
Establishing Reporting
Relationships
Relationships
Chain of Command
Narrow Versus Wide Span
Tall Versus Flat organization
Factors influencing Span of Management:
1. Competence of supervisors and subordinates
2. Physical dispersion
3. Extent of no supervisory work
4. Degree of required interaction
5. Extent of standardized procedures
6. Similarity of task being supervised
7. Frequency of new problems
8. Preference of supervisors and subordinated

Distributing Authority
Distributing Authority
Power that has
Power that has
been legitimized by the organization
been legitimized by the organization

The process of delegation

- the process by which the manager assign a portion of his total workload to others

Centralization and Decentralization

- The process of systematically delegating power and authority throughout the


organization to middle and lower level managers is decentralization

- Centralization involves keeping power and authority at the top of the organization

- several factors influence the appropriate degree of decentralization

-- Organizational environment

-- History of the organization

Nature of Organization

Ability of lower manager



Coordinating Activities-
Coordinating Activities-
The process
The process
of linking the activities of the various
of linking the activities of the various
departments of the organization
departments of the organization

Primary reasons for interdependence

Pooled ( little interaction), sequential ( output of one


unit become input of other) and reciprocal
interdependent ( flow both way) among departments.

Structural Coordination techniques:

1. A managerial hierarchy

2. Rules and Procedure-Liaison role, task forces and


integrating departments

3. Electronic Coordination

Differentiating between positions
Differentiating between positions

Differences between line and staff:

- Line positions is in direct chain of command that is


responsible for the achievement of the goals.

--- A staff position provides expertise, advice and


support for the line positions

Administrative intensity is the degree to which


managerial positions are concerned with staff
positions

Managing Organization Design
Managing Organization Design

Nature of Organizational design

Several perspective of Organizational design

Situational influence on organizational design

Strategy and Organizational Design

Basic Forms of Organizational Design

Emerging Issues in Organizational Design



Nature of Organizational design
Nature of Organizational design

The overall set of structural elements and the


relationship among the elements used to
managed the total organization

Several perspective of
Several perspective of
Organizational design
Organizational design

Bureaucratic Model: based on legitimate and formal


system of the authority

Behavioral Model: Consistent with the HR movement


and stressing attention to devreloping work group
and concern with interpersonal process

Likert: System 1 design- similar to bureaucratic and


system 4 design- similar to behavioral

Situational influence on
Situational influence on
organizational design
organizational design

Based on the assumption that optimal design for any


given organization depends on a set of relevant
situational factors

Four basic factors:

1. Core technology

2. Environment: Mechanistic & Organic Organization

3. Organizational Size

4. Organizational Life cycle: birth, youth, midlife ad


maturity

Strategy and Organizational
Strategy and Organizational
Design
Design

An organizations strategy also helps shape its


design

In various ways Corporate Level strategy and


Business level strategy both affect
organizational design.

Basic organizational functions like marketing


and finance also play a role in shaping design.

Basic Forms of Organizational design
Basic Forms of Organizational design

Functional (U-Form) Design : Fig 12.1

Conglomerate (H-form) Design: Fig 12.2

Divisional (M-form) Design: Fig 12.3

Matrix Design: Fig 12.4

Hybrid design

Emerging Issues in Organizational
Emerging Issues in Organizational
Design
Design

The team organization: relies almost exclusively on


project-type with no or little functional hierarchy

The virtual organization: Little or no formal structure

The learning organization: to facilitate the lifelong


learning and personal development of all of its
employees while continually transforming itself to
responding to the changing demands and needs.

International Business Organization: Fig 12.5



Managing Organizational change
Managing Organizational change
and innovation
and innovation

The nature of Organizational change

Managing Change in Organization

Areas of Organizational Change

Organizational Innovation

The nature of Organizational change
The nature of Organizational change

Organizational change is any substantive


modification to some parts of organization.

Change may be prompted by forces internal


or external to the organization

In general planned changes is preferable to


reactive changes

Managing Change in Organization
Managing Change in Organization

Lewin Model provides a general perspective


on the steps involved in change

A comprehensive model is usually more


effective.


Resistance to change and
Resistance to change and
Overcoming
Overcoming

People tends to resist change because of

Uncertainty

Threatened self- interest

Different perception

Feelings of loss

Overcoming the resistance:

1. Participation

2. Education

3. Communication

4. Facilitation

5. Force-field analysis

Major areas of Organizational Change
Major areas of Organizational Change

Organizational Structure and Design

Technology

People

Techniques of OD: OD is concerned with


changing attitude, perceptions, behavior,
expectations.

Its effective use relies on important set of


assumptions.

Organizational Innovation
Organizational Innovation

The innovation process has six steps:

Development

Application

Launch

Growth

Maturity

Decline

Basic Categories of Innovation
Basic Categories of Innovation

Radical

Incremental

Technical

Managerial

Product and

Process

Causes of Failure in innovation
Causes of Failure in innovation

Lack of creative individual

Commitments

Fail to recognize opportunities

Resist the change

Tools to overcome:

Reward system

Organizational culture

Intrapreneurship

Managing Human Resources in
Managing Human Resources in
Organizations
Organizations

The Environmental context of MANAGEMENT

Attracting HR

Developing HR

Maintaining HR

Managing labor relation

New challenges in changing workplace



Managing Human Resources in
Managing Human Resources in
Organizations
Organizations

HRM is concerned with attracting, developing


and maintaining the HR of an organization

The Environmental context of HRM consists of


its strategic importance and the legal and
social environments that affect the HRM

Attracting HR
Attracting HR

HR planning: job analysis, future need,


availability, planning program for proper
number and type of employee

Recruitment: Job applicants are attract

Selection : process includes tests, interviews


and assessment centers

Developing HR
Developing HR

Training and development to perform effectively and


to prepare for future.

Performance appraisals for validating selection


device, assessing the impact of training, deciding
pay raise and promotions and determining training
needs.

Both objective and judgemental methods of appraisal


can be applied.

A good system includes several methods



Maintaining HR
Maintaining HR

Fair Compensation

Properly designed incentive or merit pay


system

Career Planning

Managing labor relation
Managing labor relation

Right to be represented by union

Engage with CBA for contract

Settle disputes with management



New challenges in changing
New challenges in changing
workplace
workplace

Managing Knowledge Workers

Contingent and temporary workers



The Leading Process
The Leading Process

Basic Elements of individual behavior in


Organization

Managing Employee Motivation and


Performance

Managing Leadership and Influence Process

Managing Interpersonal Relationship and


Communication

Managing Workgroup and Team



Basic Elements of individual behavior
Basic Elements of individual behavior
in Organization
in Organization

Understanding individuals in Organization

Personality and Individual Behavior

Attitude and Individual Behavior

Perception and Individual Behavior

Stress and Individual Behavior

Creativity in Organization

Types of Workplace behavior



Understanding individuals in
Understanding individuals in
Organization
Organization
The Psychological Contract: A basic framework that
can be facilitate this understanding the nature of
individual-organization relationship- the set of
expectations held by people with respect to what they
will contribute to the organization and what they
expect to get in return.
The Person-Job fit: Organizations strive to achieve an
optimal person-job fit, but this process is complicated
by the existence of individual difference
The nature of Individual Difference

Personality and Individual Behavior:
Personality and Individual Behavior:
Personality is the relatively stable set of
Personality is the relatively stable set of
psychological and behavioral attitudes that
psychological and behavioral attitudes that
distinguish one person from another.
distinguish one person from another.

The Big Five Personality Traits, : 1. Agreeableness,


2. conscientiousness 3. negative emotionality, 4.
extraversion, 5. Openness.

The Myers-Briggs Framework: Also be a useful


mechanism for understanding personality.

Other Personality Traits at Work: 1. Locus of control,


2. self-efficacy, 3. authoritarianism, 4.
Machiavellianism, 5. Self-esteem, 6. Risk propensity.

Emotional Intelligence : A fairly new concept, may


provide additional insights into personality.

Attitude and Individual Behavior: Attitudes are based on Attitude and Individual Behavior: Attitudes are based on
emotion, knowledge, and intended behavior. Personality is emotion, knowledge, and intended behavior. Personality is
relatively stable, some attitudes can be formed and relatively stable, some attitudes can be formed and
changed easily. Others are more constant changed easily. Others are more constant

Work-related attitudes: Job satisfaction or


dissatisfaction and organizational
commitment.

Affect and Mood in organization



Perception and Individual Behavior
Perception and Individual Behavior
Perception is the set of processes by which an
Perception is the set of processes by which an
individual become aware of and interprets
individual become aware of and interprets
information about the environment.
information about the environment.

Basic Perceptional Process: Selective


perception and stereotyping

Perception and Attitudes: closely related



Stress and Individual Behavior Stress and Individual Behavior
Stress is an individuals response to a strong stimulus. Stress is an individuals response to a strong stimulus.
The General adaptation syndrome outlines the basic stress The General adaptation syndrome outlines the basic stress
process process

Causes and consequence of stress: Cause:


task, physical, role, and interpersonal
demands.
Consequences: Organizational and individual
outcomes as well as burnout

Managing Stress: several things



Creativity in Organization
Creativity in Organization
Creativity is the capacity to generate
Creativity is the capacity to generate
new ideas.
new ideas.

The creative individual: tend to have certain


profiles of background experiences, personal
traits and cognitive abilities

The Creative process: preparation-


incubation-insight- verification

Enhansing Creativity in Organizations



Types of Workplace Behavior
Types of Workplace Behavior

Performance Behavior: set of work-related behaviors


that the organization expect the individual to display
to fulfill the psychological contract

Withdrawal Behavior: absenteeism and turnover

Organizational Citizenship: positive overall


contribution to the organization

Dysfunctional Behaviors: harmful to organization.



Managing Employee Motivation and
Managing Employee Motivation and
Performance
Performance

The Nature of Motivation

Content Perspectives on Motivation

Process perspectives of Motivation

Reinforcement Perspective of Motivation

Popular Motivational Strategies

Using Reward Systems to Motivate


Performance

The Nature of Motivation
The Nature of Motivation
Motivation: The set of forces that cause people to behave in
certain ways.
The Importance of employees motivation in the workplace:
Motivation along with ability and organizational factors
determine individual performance.
Historical Perspective of Motivation: Evolve from traditional
view through the HR approach to the human resource view.

Content Perspectives on Motivation:
Content Perspectives on Motivation:
Concerned with what factor/factors cause motivation Concerned with what factor/factors cause motivation

The Need Hierarchy Approach

The Two-Factor Theory

Individual Human Needs

Implications of the content perspective



Maslows Need Hierarchy
Maslows Need Hierarchy
CD 7-4
Figure 7-3
Physiological
Most basic
need.
Safety
Consists of
the need to be
safe.
Love
The desire to
love and be
loved.
Esteem
Need for
reputation,
prestige, and
recognition
from others.
Self-
Actualization
Desire for
self-
fulfillment.

Herzbergs Motivator-Hygiene
Herzbergs Motivator-Hygiene
Model
Model
CD 7-5a
Figure 7-4a
Motivators
No Satisfaction Satisfaction
Jobs that do not Jobs offering
offer achievement achievement,
recognition, recognition,
stimulating work, stimulating work,
responsibility, responsibility,
and advancement. and advancement.

Herzbergs Motivator-Hygiene
Herzbergs Motivator-Hygiene
Model (continued)
Model (continued)
CD 7-5b
Figure 7-4b
Hygiene Factors
Dissatisfaction No Dissatisfaction
Jobs with poor Jobs with good
company policies, company policies,
and administration, and administration,
technical supervision technical supervision,
salary, interpersonal salary, interpersonal
relationships with relationships with
supervisors, and supervisors, and
working conditions. working conditions.

Maslows Need Hierarchy
Maslows Need Hierarchy
CD 7-4
Figure 7-3
Physiological
Most basic
need.
Safety
Consists of
the need to be
safe.
Love
The desire to
love and be
loved.
Esteem
Need for
reputation,
prestige, and
recognition
from others.
Self-
Actualization
Desire for
self-
fulfillment.

Herzbergs Motivator-Hygiene
Herzbergs Motivator-Hygiene
Model
Model
CD 7-5a
Figure 7-4a
Motivators
No Satisfaction Satisfaction
Jobs that do not Jobs offering
offer achievement achievement,
recognition, recognition,
stimulating work, stimulating work,
responsibility, responsibility,
and advancement. and advancement.

Herzbergs Motivator-Hygiene
Herzbergs Motivator-Hygiene
Model (continued)
Model (continued)
CD 7-5b
Figure 7-4b
Hygiene Factors
Dissatisfaction No Dissatisfaction
Jobs with poor Jobs with good
company policies, company policies,
and administration, and administration,
technical supervision technical supervision,
salary, interpersonal salary, interpersonal
relationships with relationships with
supervisors, and supervisors, and
working conditions. working conditions.

Process Perspectives on Motivation:
Process Perspectives on Motivation:
Deal with how motivation occurs
Deal with how motivation occurs

Expectancy Theory: Effort- High performance-


rewards. Positive outweigh negative: Fig 16.4

Equity Theory: To achieve and maintain social


equity.

Goal-Setting Theory: Fig 16.6

Attribution Theory is a new process theory

Implication of the Process Perspectives



Reinforcement Perspectives on
Reinforcement Perspectives on
Motivation:
Motivation:
Focuses on how motivation is
Focuses on how motivation is
maintained. Behavior-reward-repeated, behavior-
maintained. Behavior-reward-repeated, behavior-
punishment-less likely to be repeated : table 16.1
punishment-less likely to be repeated : table 16.1

Kind of reinforcement in Organization: positive


reinforcement, avoidance, punishment, and
extinction

Providing Reinforcement in Organizations:


fixed interval, variable interval, fixed ratio and
variable-ratio schedule.

Implications of the Reinforcement


Perspectives

Popular Motivational Strategies:
Popular Motivational Strategies:
derived from various theories of
derived from various theories of
motivation
motivation

Empowerment and participation: Empowerment: the process


of enabling workers to set their goals, make decisions, and
solve problems within heir sphere of responsibility and
authority.
Participation: The process of giving employee a voice in
making decision in their own work

Alternative form of work arrangement:


-variable work schedule
-Flexible work schedule
-Job sharing: Two part-time share one full time
- Telecommuting: Allow a part of work time in offsite

Using Reward System to Motivate
Using Reward System to Motivate
Performance
Performance

Merit Reward Systems: Based on relative value of


contribution

Incentive Reward System: Piece rate incentive plan

Team and Group Incentive Reward Systems:


gainsharing- share the cost saving
Scanlon Plan- Distribution of gain much more toward
employee

Executive Compensation: base salary, incentive pay,


stock option plan

New Approaches to performance based Rewards



Managing Leadership and Influence
Managing Leadership and Influence
Processes
Processes

The Nature of Leadership

Generic Approaches to Leadership

Situational Approaches to Leadership

Related Approaches to Leadership

Emerging Approaches to Leadership

Political behavior in Organization



The Nature of Leadership
The Nature of Leadership

The Meaning of Leadership

Leadership and Management

Leadership and Power



The Nature of Leadership
The Nature of Leadership

As a process, leadership is the use of no coercive influence to


shape the groups or organizations goals, motivate behavior
toward the achievement of those goals and help define group
or organization culture.

As a property, Leadership is the set of characteristics


attributed to those who are perceived to be leader.

Leadership and management are often related but are also


different. Table 17.1

Managers and leaders use legitimate, reward, coercive,


referent- personal power accrues based on identification,
imitation, loyalty or charisma and expert power.

Generic Approaches to Leadership
Generic Approaches to Leadership

Leadership Traits: The trait approach to leadership assumed


that some basic traits or set of traits differentiated leaders
from non leaders.

Leadership Behaviors Approach: assumed that the behavior


of effective leaders was somehow different from the behavior
of non leaders.

Research at the university of Michigan and Ohio state


University identified two basic forms of leadership behavior-
one concentrated on work and performance and the other
concentrated on employee welfare and support.

The managerial grid attempts to train managers to exhibit high


level of both forms of behavior.

Four Leadership Styles Derived
Four Leadership Styles Derived
from the Ohio State Studies
from the Ohio State Studies
CD17-2
Figure 17-2
High structure,
high consideration
The leader provides a lot of guidance
about how tasks can be completed
while being highly considerate of
employee needs and wants.
Low structure,
high consideration
Less emphasis is placed on
structuring employee tasks while the
leader concentrates on satisfying
employee needs and wants.
High structure,
low consideration
Primary emphasis is placed on
structuring employee tasks while
the leader demonstrates little
consideration for employee needs
and wants.
Low structure,
low consideration
The leader fails to provide necessary
structure and demonstrates little
consideration for employee needs
and wants.
Low High
Initiating Structure
Low
High
C
o
n
s
i
d
e
r
a
t
i
o
n
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

The Leadership Grid
The Leadership Grid
CD17-3
Figure 17-3
Low 1 2 3 4 5 6 7 8 9 High
High
9
8
7
6
5
4
3
2
1
Low
C
o
n
c
e
r
n

f
o
r

P
e
o
p
l
e
1,1
Impoverished
management
1, 9
Country club
management
5,5
Middle-of-the
road management
9,9
Team
management
9,1
Authority-
compliance
Source: From Leadership Dilemmas - Grid Solutions, p 29 by Robert R Blake and Anne Adams McCanse.
Copyright 1991 by Robert R Blake and the estate of Jane S Mouton. Used with permission. All rights reserved.
Concern for Production

Situational Approaches to Leadership:
Situational Approaches to Leadership:
Recognize that appropriate forms of leadership behavior are not Recognize that appropriate forms of leadership behavior are not
universally applicable and attempt to specify situations in which universally applicable and attempt to specify situations in which
various behaviors are appropriate. various behaviors are appropriate.

LPC Theory: Suggests that a leaders behaviors should be


either task oriented or relationship oriented, depending on the
favorableness of the situation.

Path-Goal Theory: Suggests that directive, supportive,


participative, or achievement oriented leaders behavior may
be appropriate, depending on the personal characteristics of
subordinates and the environment.

Vrooms Decision Tree Approach: Maintains that leaders vary


the extent to which they allow subordinates to participate in
decision making as a function of problem attributes.

The Leader-Member Exchange Approach: Focuses on


individual relationship between leaders and followers and on
in-group versus out-group considerations.

CD17-4
Figure 17-4
Representation of Fiedlers
Representation of Fiedlers
Contingency Model
Contingency Model
Situational
Control
High Control
Situations
Moderate
Control Situations
Low Control
Situations
Leader-member
relations
Task Structure
Position Power
Good Good Good
High High High
Strong Weak Strong
Good Poor Poor
Low High High
Weak Strong Strong
Poor Poor
Low Low
Strong Weak
Situation I II III IV V VI VII VIII
Optimal
Leadership
Style
Task Motivated
Leadership
Relationship
Motivated Leadership
Task Motivated
Leadership
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

Houses Path-Goal Theory
Houses Path-Goal Theory
CD17-5
Figure 17-5
Employee Characteristics
- Locus of control
- Task ability
- Need for achievement
- Experience
- Need for clarity
Environmental Factors
- Employees task
- Authority system
- Work group
Leadership Styles
- Directive
- Supportive
- Participative
- Achievement oriented
Employee Attitudes
and Behavior
- Job satisfaction
- Acceptance of leader
- Motivation
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

Related Approaches to Leadership
Related Approaches to Leadership

Substitutes to Leadership: leaders behaviors are


neutralized or replaced by characteristics of
subordinates, the task, and the organization

Charismatic leadership: A form of interpersonal


attraction that inspire support and acceptance

Transformational leadership: Leadership that goes


beyond ordinary expectations by transmitting a
sense of mission, stimulating learning experiences
and inspiring new way of thinking.



Charismatic Model of Leadership
Charismatic Model of Leadership
Organizational
culture
Leader
behavior
Effects on
followers and
work groups
Outcomes
CD17-7a
Figure 17-7a

Adaptive

Leader
establishes a
vision

Leader
establishes high
performance
expectations and
displays
confidence in
him/herself and
the collective
ability to
realize the vision

Increased
intrinsic
motivation,
achievement
orientation, and
goal pursuit

Increased
identification
with the leader
and the
collective
interests of
organizational
members

Personal
commitment
to leader
and vision

Self-
sacrificial
behavior

Organiza-
tional
commitment

Task
meaningful-
ness and
satisfaction
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

Emerging Approaches to Leadership
Emerging Approaches to Leadership

Strategic Leadership

Cross-Cultural Leadership

Ethical Leadership

Political behavior in Organization
Political behavior in Organization

Common Political Behavior: Influence process


frequently used in the organization.

Impression Management: is a direct and


intentional efforts of someone to enhance his
or her image in the eye of others.

Managing Political Behavior: steps to limit.



Managing Interpersonal Nature of
Managing Interpersonal Nature of
organization
organization

The Interpersonal Nature of Organization

Communication and the Managers Job

Forms of Communication in Organization

Informal Communication In Organization

Managing Organizational Communication



The Interpersonal Nature of
The Interpersonal Nature of
Organization
Organization

Communication is the process of transmitting


information from one person to another.

Effective communication is the process of


sending a message in such a way that the
message received is as close in meaning as
possible to the message intended.

Interpersonal Dynamics

Outcomes of Interpersonal Behavior



Communication and the Managers
Communication and the Managers
Job
Job

A definition of Communication

The Role of Communication in Management:


Pervasive and important part of managers world.

The Communication Process: Encoding-transmitting-


receiving-decoding

In two way communication this process continues


with the roles reversed.

Noise can disrupt any part of the overall process.



Forms of Communication in
Forms of Communication in
Organization
Organization

Interpersonal Communication: Focus on communication


among a small number of people. Two important forms- Oral,
written, both. Weigh the pros and coins of each when
choosing a medium,

Communication in Network and Work Teams: Communication


networks are recurring patterns of communication among
members of a group or work team.

Organizational Communication: *Vertical and *Horizontal


- Organization also use information system to manage
communication.

Electronic Communication: Profound effect on managerial and


organizational communication.

Informal Communication In
Informal Communication In
Organization
Organization
A great deal in organization
A great deal in organization

The Grapevine

Management by wandering Around

Nonverbal communication: facial expression,


body language, physical contact, gesture, and
inflection and tone

Managing Organizational
Managing Organizational
Communication
Communication

Barriers to communication: Individual and


organizational level

Improving Communication Effectiveness:


individual and organizational kills are needed

Barriers to communication
Barriers to communication

Individual barriers

Conflicting or inconsistent
signals

Credibility about the subject

Reluctance to communicate

Poor listening skill

Predispositions about the


subject

Organizational barriers

Semantics

Status or power differences

Different perceptions

Noise

Overload

Language differences

Improving Communication
Improving Communication
Effectiveness
Effectiveness

Individual skills

Develop good listening skills

Encourage two way


communication

Be aware of language and


meaning

Maintain credibility

Be sensitive to receivers
perspective

Be sensitive to senders
perspective

Organizational skill

Follow up

Regulate information flows

Understand the richness of


media

More or less effective listening
More or less effective listening

More effective listening

Stays active, focused

Pay attention

Ask questions

Keeps an open mind

Assimilates information

Less effective listening

Is passive, laid back

Is easily distracted

Ask no question

Has preconception

Disregard information

Managing work Group and Team
Managing work Group and Team

Groups and Teams in Organization

Characteristics of Groups and Teams

Interpersonal and intergroup Conflict

Managing Conflict in Organization



Groups and Teams in Organization
Groups and Teams in Organization
A group is two or more people who interact regularly to accomplish a A group is two or more people who interact regularly to accomplish a
common purpose or goal. common purpose or goal.
A team is a group of workers that function as a unit, often with little or A team is a group of workers that function as a unit, often with little or
no supervision, to carry out organizational functions no supervision, to carry out organizational functions

Types of Groups and Teams: Types of group:


1. Functional group
2. Task group and teams
3. Informal or interest group

Why people Join Groups and Teams: People join functional


group or team to pursue a career. Reasons for joining
informal or interest group: Interpersonal attraction, group
activities, group goals, need satisfaction, and potential
instrumental benefits

Stages of Group and Team Development: Forming-


Storming-Norming-Performing

Characteristics of Groups and Teams
Characteristics of Groups and Teams

Role Structure: define task and socioemotional


specialists and may be disrupted by role ambiguity,
role conflict and role overload.

Behavioral Norms: Standards of behavior for group


members.

Cohesiveness: Extent to which members are loyal


and committed to the team and to one another.

Formal and Informal leadership: Informal leaders are


those whom the group members themselves choose
to follow.

Interpersonal and intergroup Conflict
Interpersonal and intergroup Conflict

The Nature of Conflict:* Conflict is a disagreement


between two or more people, groups, or
organizations. * Too little or too much conflict may
hurt performance, but an optimal level can improve
performance

Causes of Conflict: Interpersonal and intergroup


conflict may be caused by personality differences or
by particular organizational strategies and practices.

Managing Conflict in Organization: Organizations
Managing Conflict in Organization: Organizations
can encounter conflict with one another and with
can encounter conflict with one another and with
various elements of the environment
various elements of the environment

Stimulating Conflict

Controlling Conflict

Resolving and Eliminating Conflict



6. The Controlling Process
6. The Controlling Process

21. Basic Elements of Control

22. Managing Operations, Quality and


Productivity

23.Managing Information and Information


Technology

21. Basic Elements of Control
21. Basic Elements of Control

The Nature of Control

Operations Control

Financial Control

Structural Control

Strategic Control

Managing Control in Organization



The Nature of Control
The Nature of Control

The purpose of Control

Types of Control

Steps in the Control Process



The purpose of Control
The purpose of Control

Adapting to environmental change

Limiting the accumulation of errors

Coping with organizational complexity

Minimizing costs

Types of Control
Types of Control

Areas of control

Levels of control

Responsibilities of control

Steps in control Process
Steps in control Process
Steps:
Step 2
Measuring
Performance
Step 1
Establishing
Standards
Step 4
Considering
Corrective
action
Step 3
Comparing
Performance
against standards.
Maintain the
Status quo
Correct the
deviation
Change
Standards

Operations Control:
Operations Control: transform resources into transform resources into
product product

Forms of Operational Control

Preliminary Control: inputs

Screening Control: transformational process

Post action Control: outputs

Most organization use multiple control


systems

Financial Control
Financial Control

Budgetary Control

Financial Statements

Ratio Analysis

Financial Audits

Budgetary Control
Budgetary Control
Types of Budget
Financial Budget
Cash-flow or cash budget
Capital expenditures budget
Balance Sheet Budget
Operating Budget
Sales or revenue budget
Expense Budget
Profit Budget
Nonmonetery Budget
Labor Budget
Space Budget
Production Budget
What Budget shows

Structural Control:
Structural Control: Addresses how well an Addresses how well an
organizations structural elements serve their intended structure organizations structural elements serve their intended structure
Organization select between the extreme of two forms. Organization select between the extreme of two forms.
Bureaucratic Control (formal or
mechanistic arrangement)
Employee compliance
Strict rules, formal controls, rigid
hierarchy
Directed toward minimum levels
of acceptable performance
Tall structure, top-down influence
Directed at individual
performance
United and formal
Decentralized Control (informal or
organic arrangement)
Employee commitment
Group norms, culture, self control
Directed toward enhanced
performance above and beyond
the minimum
Flat structure, shared influence
Directed at group performance
Extended and
formal01711429221

Strategic Control:
Strategic Control: Focuses on how effectively the Focuses on how effectively the
organizations strategies are succeeding in helping the organizations strategies are succeeding in helping the
organization meet its goals organization meet its goals

Integrating strategy and control: Generally


achieved through organization structure,
leadership, technology, HR, and information
and operational control systems

International strategic control: for


multinationals. Whether to practice centralized
or decentralized control.

Managing Control in the organization
Managing Control in the organization

Characteristics of effective control

Resistance to control

Overcoming resistance to control



Characteristics of effective control
Characteristics of effective control

Integrating with planning

Flexibility

Accuracy

Timeliness

Objectivity

Resistance to control
Resistance to control

Overcontrol

Inappropriate Focus

Rewards for inefficiency

A desire to avoid Accountability



Overcoming resistance to control
Overcoming resistance to control

Improving the effectiveness of control

Encouraging Employee participation

Develop Verification Procedures



21. Managing Operations, Quality and
21. Managing Operations, Quality and
Productivity
Productivity

The nature of operations management

Designing operation systems

Organizational Technologies

Implementing operational system through


supply chain Management

Managing Total Quality

Managing Productivity

The nature of operations management
The nature of operations management: :
Set of managerial activities that organizations use in creating their product Set of managerial activities that organizations use in creating their product
and services. and services.

The importance of operations management

Manufacturing and production operations

Service Operations

The roles of operations in organizational


strategy

Designing operation systems
Designing operation systems

Determining Product-Service Mix

Capacity Decisions

Facility Decisions

A. Location

B. Layout

Organizational Technologies
Organizational Technologies

Manufacturing technology

Automation

Computer-Assisted Manufacturing :CAD CAM

Robotics

Service Technology

Implementing operational system through supply chain
Implementing operational system through supply chain
Management: Supply chain Management is a
Management: Supply chain Management is a
comprehensive view of managing all of these activities
comprehensive view of managing all of these activities
in a more efficient manner
in a more efficient manner

Operation Management as Control

Purchasing Management

Inventory management

Managing Total Quality
Managing Total Quality

The meaning of quality: performance, Features, Reliability, Conformance,


Durability, Serviceability, Aesthetics, perceived quality.

The importance of quality: Malcolm Baldrige Award;

A. Competition

B. Productivity

C. Costs

Total quality management

TQM tools and techniques



Total quality management:
Total quality management: a comprehensive a comprehensive
effort to enhance an organizations product or service quality effort to enhance an organizations product or service quality
Employee
involvement
Materials Technology Methods
Strategic Commitment
Quality Improvement

TQM tools and techniques
TQM tools and techniques
Value added Analysis: to determine value added for customers.
Benchmarking: process of learning how other firms do things in
exceptionally high quality manner
Outsourcing
Reducing cycle time: Cycle-developing, making and distributing products
ISO 9000:2000: Set for quality standards
ISO 14000: set of standards for environmental performance
Statistical quality control: to monitor quality including acceptance sampling
and in-process sampling.
Six Sigma: tries to eliminate mistakes. Produce a mere 3.4 mistakes per
million. Developed in 1980 for Motorola.

Managing productivity
Managing productivity

The meaning of productivity

Levels of productivity

Forms of productivity

The importance of productivity

Productivity trends

Improving productivity

Increasing employee involvement



22. Managing information and
22. Managing information and
information Technology
information Technology

Information and the managers

Types of information system

Managing information system

The impact of information system in


organization

Information and the managers
Information and the managers

The Role of information in managers job

Characteristics of useful information

a. Accurate, b. Timely, c. Complete, d. Relevant

Information Management as Control

Building blocks of information technology



Types of information system
Types of information system

User groups and system requirement

Managers at different levels:


Functional area
Business processes

Major systems by levels

The Internet

Major systems by levels
Major systems by levels

Transaction processing systems

Systems by knowledge workers and office


applications

Systems by operations and data workers

Knowledge levels and office systems

Management Information Systems

Decision Support systems

Executive Support Systems

Artificial Intelligence and Expert systems



The Internet
The Internet

The World Wide Wave

Servers and Browsers

Directories and Search Engines

Intranets

Extranets

Managing Information Systems
Managing Information Systems

Creating Information Systems

Integrating Information Systems

Using Information Systems

Managing information Security

Understanding Information System Limitations




Impact of Information system on
Impact of Information system on
Organization
Organization

Leaner organization

More flexible operations

Increased Collaboration

More flexible work sites

Improved management process

Changed employee behavior



Types of Planning
Types of Planning


Making Decisions
Making Decisions

Types of Decisions

Programmed decisions: repetitive and routine


decisions.

Decisions rule identifies the situation and specifies how


the decision will be made.

Nonprogrammed decisions

Decisions made in complex and nonroutine situations.


Problem hasnt arisen before.
It is difficult to define problems nature and structure.
Problem is important and requires a unique solution.

Strategic Results: The 4-P Cycle of
Strategic Results: The 4-P Cycle of
Continuous Improvement
Continuous Improvement
CD1-2
Figure 1-1
People
(Skilled, motivated
people who can handle
change. Less stress.)
Products
(Satisfied customers
because of better
quality goods/services.)
Processes
(Faster, more flexible,
leaner, and ethical organizational
processes. Organizational learning.)
Productivity
(Less wasteful, more
efficient use of all
resources.)

Learning About OB Through
Learning About OB Through
A Combination of Theory,
A Combination of Theory,
Research, and Practice
Research, and Practice
CD1-6
Figure 1-2
Research
Practice
Theory
Most complete
information for
better
understanding
and managing
organizational
behavior

A Topical Model for What Lies Ahead
A Topical Model for What Lies Ahead
CD1-7
Figure 1-3
External Environment (Cultural Context)
Organization (Structure, Culture, Change)
Understanding
and managing
organizational
processes and
problems
Understanding
and managing
individual
behavior
Understanding
and managing
group and
social
processes
Managers responsible
for achieving
organizational
results with and
through others
Organizational
effectiveness
through
continuous
improvement

The Four Layers of Diversity
The Four Layers of Diversity
CD 2-2
Figure 2-1
Source: L Gardenswartz and A Rowe, Diverse Teams
at Work: Capitalizing on the Power of Diversity (New
York: McGraw-Hill, 1994), p. 33
Personality
Functional Level/
Classification
Geographic Location
Age
Work
Location
Seniority
Division/
Dept./
Unit/
Group
Work
Content/
Field
Union
Affiliation
Mgmt.
Status
Marital
Status
Parental
Status
Appearance
Educational
Background
Work
Experience
Race
Income
Personal
Habits
Religion
Recreational
Habits
Ethnicity
Physical
Ability
Sexual
Orientation

Comparison of Affirmative Action,
Comparison of Affirmative Action,
Valuing Diversity, and Managing Diversity
Valuing Diversity, and Managing Diversity
CD 2-3
Table 2-1
Who Conceptual
Focus Driver Benefits Foundation
Affirmative Achieving Laws Targeted Assimilation
Action Equality Groups Model
Valuing Appreciation Ethics All Diversity
Diversity of differences employees Model
Managing Building skillsCorporateThe Synergy
Diversity and changingStrategy Organization Model
policies and all
employees
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

Workforce Demographics
Workforce Demographics
Percent Entrants
1996-2006
Percent Leavers
1996-2006
Total
Men
Women
100
50.4
49.6
100
55.9
44.1
White
Non-Hispanic 61.0 68.5
African-American 15.6 20.2
Hispanic 14.9 5.2
Asian and Other
Races 8.4 6.1
CD 2-4
Table 2-2
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

A Typology of Organizational
A Typology of Organizational
Values
Values
CD 3-2a
Figure 3-1a
Equitable
O
r
g
a
n
i
z
a
t
i
o
n
a
l

R
e
w
a
r
d

N
o
r
m
s
Unequal or
Centralized Power
Equal or
Decentralized Power
Organization Power Structure
Elite
Endorsed Discouraged
Values Values
Authority Teamwork
Performance Participation
rewards Commitment
Affiliation
Meritocractic
Endorsed Discouraged
Values Values
Performance Authority
rewards
Teamwork
Participation
Commitment
Affiliation
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

A Typology of Organizational
A Typology of Organizational
Values (continued)
Values (continued)
CD 3-2b
Figure 3-1b
Egalitarian
O
r
g
a
n
i
z
a
t
i
o
n
a
l

R
e
w
a
r
d

N
o
r
m
s
Unequal or
Centralized Power
Equal or
Decentralized Power
Organization Power Structure
Leadership
Endorsed Discouraged
Values Values
Authority Participation
Performance
rewards
Teamwork
Commitment
Affiliation
Collegial
Endorsed Discouraged
Values Values
Teamwork Authority
Participation Performance
Commitment rewards
Affiliation
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

A Model for Observing and Interpreting
A Model for Observing and Interpreting
General Manifestations of Organizational Culture
General Manifestations of Organizational Culture
Source: Implications of Corporate Culture: A Managers Guide to Action, by Vijay Sathe.
CD 3-3
Figure 3-2
Emotion
Shared feelings
Behavior
Shared doings
Talk
Shared sayings
Objects
Shared things
Culture
Important
shared
understandings
Interpret
Infer meanings
Generate
Receive
Ask
Observe
Read
Feel

Four Functions of Organizational Culture
Four Functions of Organizational Culture
CD 3-4
Figure 3-3
Organizational
culture
Sense-making
device
Organizational
identity
Social system
stability
Collective
commitment
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

Developing an Adaptive Culture
Developing an Adaptive Culture
Early business leaders create an implement a business vision
and strategy that fits the business environment well.
Business leaders emphasize the importance of
constituencies and leadership in creating the success.
Firm succeeds.
A strong culture emerges with a core that emphasizes service to customers,
stockholders, and employees, as well as the importance of leadership.
Subsequent top managers work to preserve the
adaptive core of the culture.
They demonstrate greater commitment to its
basic principles than any specific business
strategy or practice.
CD 3-5
Figure 3-4
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

Cultural Influences on
Cultural Influences on
Organizational Behavior
Organizational Behavior
CD4-2
Figure 4-1
Organizational
Behavior
Organizational
Culture

Personal
values/ethics

Attitudes

Assumptions

Expectations
Societal
culture

Customs

Language

Economic/
technological
setting

Political/
legal setting

Ethnic
background

Religion
Source: Adapted in part from BJ Punnett and S Withane, Hofstedes Value Survey Module: To Embrace or Abandon?
in Advances in International Comparative Management, vol 5, ed SB Prasad (Greenwich, CT: JAI Press, 1990), pp 69-89.

A Contingency Model for Cross-Cultural Leadership
A Contingency Model for Cross-Cultural Leadership
CD4-5
Table 4-3
Australia
Brazil
Canada
France
Germany*
Country Directive Supportive Participative Achievement
Great Britain
Hong Kong*
Japan
Sweden
United States
Most Culturally Appropriate Leadership Behaviors
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
*Former West Germany **Reunited with China
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

Foreign Assignment Cycle
Foreign Assignment Cycle
CD4-7
Figure 4-4
1. Selection and
training
Unrealistic expectations
2. Arrival and
adjustment
Culture shock
3. Settling in and
acculturating
Lack of support
4. Returning
home and
adjusting
Reentry shock
Home Country Experiences Foreign Country Experiences
Reassignment
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

Personality
traits
A Conceptual Model for the Study of
A Conceptual Model for the Study of
Individual Differences in OB
Individual Differences in OB
CD5-2
Figure 5-1
Self Concept

Self-esteem

Self-efficacy

Self-monitoring
The Unique Individual Forms of Self-
Expression
Attitudes
Abilities
Emotions

Determinants and Consequences of
Determinants and Consequences of
Organization-Based Self-Esteem
Organization-Based Self-Esteem
CD5-3
Figure 5-2

Managerial respect

Organizational
structure

Job complexity

Global self-esteem

Job performance

Intrinsic motivation

General satisfaction

Citizenship behavior

Organizational
commitment and
satisfaction
OBSE
Determinants of
OBSE
Factors Influenced
by OBSE

Self-Efficacy
Self-Efficacy
A Model of Self-Efficacy
Sources of Self-Efficacy Beliefs:
- Prior experience
- Behavior models
- Persuasion from others
- Assessment of physical/emotional
state
Self-efficacy: A persons belief about his or her
chances of successfully accomplishing a specific
task.
CD5-4
Figure 5-3

A Model of Behavioral Intention
A Model of Behavioral Intention
CD5-5
Figure 5-4
The persons beliefs
that the behavior leads
to certain outcomes
and his evaluations
of these outcomes
The persons beliefs
that specific
individuals or groups
think he should or
should not perform the
behavior and his
motivation to comply
with the specific referents
Behavior Intention
Attitude toward
the behavior
Relative
importance of
attitudinal and
normative
consideration
Subjective
norm

Performance Depends on the Right
Performance Depends on the Right
Combination of Effort, Ability, and Skill
Combination of Effort, Ability, and Skill
CD5-6
Figure 5-5
Performance
Ability
Effort
Skill

A Model of Ethical Behavior in the
A Model of Ethical Behavior in the
Workplace
Workplace
CD 3-6
Figure 3-7
Cultural Influences
- Family
- Education
-Religion
- Media/entertainment
Organizational Influences
- Ethical codes
- Organizational culture
- Role models
- Perceived pressure for results
- Rewards/punishment system
Individual
- Personality
- Values
- Moral
principles
- History of
reinforcement
- Gender
Political/legal/
economic
influences
Ethical
behavior
R
o
l
e
E
x
p
e
c
t
a
t
i
o
n
s
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

Social Perception: A Social
Social Perception: A Social
Information Processing Model
Information Processing Model
CD 6-2a
Figure 6-1a
Competing
environmental
stimuli:
* People
* Events
* Objects
Interpretation
and
categorization
Stage 1
Selective Attention/
Comprehension
Stage 2
Encoding
and Simplification
A
C
F
A
B
C
D
E
F
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

Social Perception: A Social
Social Perception: A Social
Information Processing Model (continued)
Information Processing Model (continued)
CD 6-2b
Figure 6-1b
Stage 3
Storage and
Retention
Stage 4
Retrieval
and Response
Memory
Judgments and
decisions
C
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

Model of the Self-Fulfilling
Model of the Self-Fulfilling
Prophecy
Prophecy
CD 6-3
Figure 6-2
Supervisor
expectancy
6
3
Motivation
4
Performance
5 1
Leadership
Subordinate
self-
expectancy
2
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

Consensus
Consensus
CD 6-4a
Figure 6-3a
People
I
n
d
i
v
i
d
u
a
l

P
e
r
f
o
r
m
a
n
c
e
A B C D E
People
I
n
d
i
v
i
d
u
a
l

P
e
r
f
o
r
m
a
n
c
e
A B C D E
Low High
Source: KA Brown, Explaining Group Poor Performance: an Attributional Analysis, Academy of Management Review, January 1984,
p 56. Used with permission.

Distinctiveness
Distinctiveness
CD 6-4b
Figure 6-3b
Tasks
I
n
d
i
v
i
d
u
a
l

P
e
r
f
o
r
m
a
n
c
e
A B C D E
Tasks
I
n
d
i
v
i
d
u
a
l

P
e
r
f
o
r
m
a
n
c
e
A B C D E
Low High
Source: KA Brown, Explaining Group Poor Performance: an Attributional Analysis, Academy of Management Review, January 1984,
p 56. Used with permission.

Consistency
Consistency
CD 6-4c
Figure 6-3c
Time
I
n
d
i
v
i
d
u
a
l

P
e
r
f
o
r
m
a
n
c
e
Time
I
n
d
i
v
i
d
u
a
l

P
e
r
f
o
r
m
a
n
c
e
Low High
Source: KA Brown, Explaining Group Poor Performance: an Attributional Analysis, Academy of Management Review, January 1984,
p 56. Used with permission.

Weiners Attribution Model
Weiners Attribution Model
CD 6-5a
Figure 6-4a
Someone
performs
a task
Judgment
of
success
Internal
Factors
External
Factors

self esteem (+)

expectancy of
future
success (+)

pride (+)

shame (+)

depression (+)
Higher
Future
Performance

self esteem (+or+)

expectancy of
future
success (+or+)

pride (+or+)

shame (+or+)

depression (+or+)
Lower to
Higher
Future
Performance
Source: Based in part on B Weiner, An Attributional Theory of Achievement Motivation and Emotion, Psychological Review, October
1985, pp 548-573; and TS Bateman, GR Ferris, and S Strasser, The Why Behind Individual Work Performance, Management Review,
October 1984, p 71.

Weiners Attribution Model (cont.)
Weiners Attribution Model (cont.)
CD 6-5b
Figure 6-4b
Someone
performs
a task
Judgment
of
failure
Internal
Factors
External
Factors

self esteem (+)

expectancy of
future
success (+)

pride (+)

shame (+)

depression (+)
Higher
Future
Performance

self esteem (+or+)

expectancy of
future
success (+or+)

pride (+or+)

shame (+or+)

depression (+or+)
Lower to
Higher
Future
Performance
Source: Based in part on B Weiner, An Attributional Theory of Achievement Motivation and Emotion, Psychological Review, October
1985, pp 548-573; and TS Bateman, GR Ferris, and S Strasser, The Why Behind Individual Work Performance, Management Review,
October 1984, p 71.

A Job Performance Model of Motivation
A Job Performance Model of Motivation
CD 7-2a
Figure 7-1a
Ability, Job knowledge
Dispositions & Traits
Emotions, Moods, &Affect
Beliefs & Values
Individual Inputs
Physical Environment
Task Design
Rewards & Reinforcement
Supervisory Support &
Coaching
Social Norms
Organizational Culture
Job Context
Arousal Attention Intensity
& &
Direction Persistence
Motivational Processes
Motivated
Behaviors
Skills
Enable, Limit

A Job Performance Model of Motivation (cont.)
A Job Performance Model of Motivation (cont.)
CD 7-2a
Figure 7-1b
Individual
Inputs
Job
Context
Motivational
Processes
Focus: Direction, What we do
Intensity: Effort, how hard
we try
Quality: Task strategies, the
way we do it
Duration: Persistence, how
long we stick to it
Skills
Enable, Limit
Performance
Motivated Behaviors

Motivation Theories and
Motivation Theories and
Workplace Outcomes
Workplace Outcomes
CD 7-3a
Figure 7-2a

Choice to pursue
a course of action
Need Reinforcement Equity
Outcome of
Interest

Effort

Performance

Satisfaction

Absenteeism

Turnover
X
X
X
X
X
X
X
X
X
X
X

Motivation Theories and
Motivation Theories and
Workplace Outcomes (continued)
Workplace Outcomes (continued)
CD 7-3b
Figure 7-2b

Choice to pursue
a course of action
Expectancy Goal Setting
Job
Characteristics
Outcome of
Interest

Effort

Performance

Satisfaction

Absenteeism

Turnover
X
X
X
X
X
X
X
X
X
X

Maslows Need Hierarchy
Maslows Need Hierarchy
CD 7-4
Figure 7-3
Physiological
Most basic
need.
Safety
Consists of
the need to be
safe.
Love
The desire to
love and be
loved.
Esteem
Need for
reputation,
prestige, and
recognition
from others.
Self-
Actualization
Desire for
self-
fulfillment.

Herzbergs Motivator-Hygiene
Herzbergs Motivator-Hygiene
Model
Model
CD 7-5a
Figure 7-4a
Motivators
No Satisfaction Satisfaction
Jobs that do not Jobs offering
offer achievement achievement,
recognition, recognition,
stimulating work, stimulating work,
responsibility, responsibility,
and advancement. and advancement.

Herzbergs Motivator-Hygiene
Herzbergs Motivator-Hygiene
Model (continued)
Model (continued)
CD 7-5b
Figure 7-4b
Hygiene Factors
Dissatisfaction No Dissatisfaction
Jobs with poor Jobs with good
company policies, company policies,
and administration, and administration,
technical supervision technical supervision,
salary, interpersonal salary, interpersonal
relationships with relationships with
supervisors, and supervisors, and
working conditions. working conditions.

The Job Characteristics Model
The Job Characteristics Model
CD 7-6
Outcomes
*High internal
work
motivation
*High growth
satisfaction
*High general
job satisfaction
*High work
effectiveness
Critical
psychological
states
*Experienced
meaningfulness of the
work
*Experienced
responsibility for
outcomes of the work
*Knowledge of the actual
results of the work
activities
Core job
characteristics
*Skill variety
*Task identity
*Task
significance
*Autonomy
*Feedback from
job
Moderators
1. Knowledge and skill
2. Growth need strength
3. Context satisfactions

Factors Considered When
Factors Considered When
Making Equity Comparisons
Making Equity Comparisons
CD 8-2
Table 8-1
Inputs Outcomes
Time
Education/training
Skills
Creativity
Seniority
Loyalty to organization
Age
Personality traits
Effort expended
Personal appearance
Pay/bonuses
Fringe benefits
Challenging assignments
Job security
Career advancement/promotions
Status symbols
Pleasant/safe working environment
Opportunity for personal growth/
development
Recognition
Participation in important decisions

A General Model of Vrooms
A General Model of Vrooms
Expectancy Theory
Expectancy Theory
CD 8-3
High Effort
Decision to
Exert Effort
Low Effort
Performance
Goal
Performance
Goal
Expectancy
What are my chances
of reaching my
performance goal
if I work hard?
Expectancy
What are my chances
of reaching my
performance goal
if I slack off?
Instrumentality
What are my chances
of getting various
outcomes if I achieve
my performance goal?
Valence
How much do I value
these outcomes?
Outcome 3
Outcome 2
Outcome 1
Outcome 3
Outcome 2
Outcome 1

Porter and Lawlers Expectancy
Porter and Lawlers Expectancy
Model
Model
CD 8-4
Figure 8-2
1
Value of
Reward
2
Perceived
effort - reward
probability
3
Effort
4
Abilities
and traits
5
Role
perceptions
6
Performance
(accomplishment)
8
Perceived
equitable
rewards
9
Satisfaction
7A
Intrinsic
rewards
7B
Extrinsic
rewards

Goals
Goals
CD 8-5
Figure 8-3
Goal: What an individual is trying to accomplish.
Encouraging the
development of goal-
attainment strategies
or action plans
Increasing
ones persistence
Regulating
ones effort
Directing
ones attention
Goals
motivate the
individual
by...
Task
performance

Guidelines for Writing SMART
Guidelines for Writing SMART
Goals
Goals
Specific
Measurable
Attainable
Results oriented
Time bound
CD 8-6

Feedback and Rewards Are Important
Feedback and Rewards Are Important
Links In the Job Performance Cycle
Links In the Job Performance Cycle
CD9-2
Figure 9-1
Results

Learning

Personal development
Stable, strong job performance
Properly
administered
rewards
Timely and
instructive
feedback
Effort Ability

A Cognitive-Processing Model of Feedback
A Cognitive-Processing Model of Feedback

CD9-3
Figure 9-2
Characteristics

Self-esteem

Self-efficacy
Needs and goals
Desire for performance
feedback
Perception

Sign and content of


feedback message
Cognitive Evaluations

Feedback accuracy

Source credibility
System fairness
Expectations

Behavioral standards
Recipient
Sources

Others

Task
Self
Behavioral
Outcomes

Direction

Effort

Persistence

Resistance

Six Common Trouble Signs
Six Common Trouble Signs
for Organizational Feedback
for Organizational Feedback
Systems
Systems
O
Feedback is used to punish, embarrass, or put down employees
O
Those receiving the feedback see it as irrelevant to their work
O
Feedback information is provided too late to do any good
O
People receiving feedback believe it relates to matters beyond
their control
O
Employees complain about wasting too much time collecting and
recording feedback data
O
Feedback recipients complain about feedback being too
complex or difficult to understand
CD9-4
Table 9-1

Sources and Types of Feedback in
Sources and Types of Feedback in
the 360-Degree Approach
the 360-Degree Approach
CD9-5
Figure 9-3
Direct
supervisor
Peers/team
members
Direct
subordinates
Relevant others such
as customers
and suppliers
Manager/Focus Person
Self-evaluation of:
Planning/administrative/
financial skills
Technical/business skills
Interpersonal skills
Problem-solving skills
Team-building skills
Other relevant skills

General Model of Organizational
General Model of Organizational
Reward Systems
Reward Systems
CD9-6
Figure 9-4
Organizations Reward
Norms

Profit maximization

Equity

Equality

Need
Distribution Criteria

Results

Behavior

Other factors
Types of Rewards

Financial/material
(extrinsic)

Social (extrinsic)

Psychic (intrinsic)
Desired Outcomes

Attract

Motivate

Develop

Satisfy

Retain

Step 2
Perform an
A B C
functional
analysis
Modifying On-the-Job Behavior
Modifying On-the-Job Behavior
CD10-5
Figure 10-3
Step 1
Identify
target
behavior
Step 4
Evaluate
results
Step 3
Arrange Provide
antecedents by supportive and
1. Removing appropriately
obstacles. scheduled
2. Providing consequences.
opportunities.

A Contingency Model for
A Contingency Model for
Selecting a Solution
Selecting a Solution
CD11-2
Figure 11-2
Strategies to
select a solution
* Aided analytic
* Unaided-analytic
* Nonanalytic
Generating
alternatives
Characteristics of Decision Task:
The decision problem
* Unfamiliarity
* Ambiguity
* Complexity
*Instability
The decision environment
*Irreversibility
* Significance
*Accountability
* Time and/or money constraints
Characteristics of Decision Maker
* Knowledge
* Ability
* Motivation
* Decision Making Style

Decision Making Styles
Decision Making Styles
CD11-3
Figure 11-3
Analytical Conceptual
Directive Behavioral
Tasks and Technical
Concerns
People and Social
Concerns
Value Orientation
Low
High
T
o
l
e
r
a
n
c
e

f
o
r

A
m
b
i
g
u
i
t
y

Escalation of Commitment
Escalation of Commitment
CD11-4
Figure 11-4
Psychological and Social
Determinants
* Ego defense
* Individual motivators
* Peer pressure
* Saving face
Organizational Determinants
* Breakdown in communication
* Politics
* Organizational inertia
Project Characteristics
* A delayed return on the investment
* Setbacks attributed to temporary
causes
Contextual Determinants
* External political pressure
Escalation
of
commitment
Poor results
or
outcomes

A Model of Participative Management
A Model of Participative Management
CD11-6
Participation in
Goal Setting
Participation in
Decision Making
Participation in
Problem Solving
Participation in
Change
Contingency
Factors
* Design of work
* Trust
* Readiness to Participate
Autonomy
Increased
control over work
behavior
Completion of
Meaningful
Tasks
Acceptance
and Commitment
Security
Challenge
Satisfaction
Performance
and Innovation

Vroom and Jagos Decision-
Vroom and Jagos Decision-
Making Model
Making Model
CD11-7
Figure 11-4
QR
State the
Problem
CR
CP
Low Low
High
CR
LI
LI
No
Yes
ST
ST
CP
CP
CP
H
i
g
h
H
i
g
h
Y
e
s
No
No
Yes
No
GC
GC
GC
GC
Y
e
s
CO
Y
e
s
N
o
No
CO
Yes
SI
SI
AI
GII
CII
GII
CII
AII
CI
CII
AI
GII
Yes
No
Yes
N
o
N
o
Yes
Y
e
s
N
o
No
No
Yes
N
o
Yes
L
o
w
N
o
N
o
Yes
QR
CR
LI
ST
CP
GC
CO
SI
Quality Requirement
Commitment Requirement
Leaders Information
Problem Structure
Commitment Probability
Goal Congruence
Subordinate Conflict
Subordinate
Information

A Model of Organizational Creativity
A Model of Organizational Creativity
and Innovation
and Innovation
CD11-8
Figure 11-7
Individual Characteristics
Intellectual abilities
Tacit (implied) and explicit knowledge
Styles of thinking
Personality traits
Intrinsic task motivation
Group Characteristics
- Norms - Diversity
- Cohesiveness - Roles
- Size - Problem-solving approaches
Organizational Characteristics
- Culture - Strategy
- Resources - Structure
- Rewards - Technology
Individual creative
behavior/performance
Group creative
behavior/performance
Organizational
creativity and
innovation

Groups
Groups
CD12-2
Figure 12-1
1
Two or more
freely
interfacing
individuals
Common
identity
4
3
Collective
goals
Collective
norms
2

Functions of Formal Groups
Functions of Formal Groups
CD12-3
Table 12-1
Organizational Functions Individual Functions
1. Accomplish complex, interdependent
tasks that are beyond the capabilities
of individuals.
2. Generate new or creative ideas and
solutions.
3. Coordinate interdepartmental efforts.
4. Provide a problem-solving mechanism
for complex problems requiring
varied information and assessments.
5. Implement complex decisions.
6. Socialize and train newcomers.
1. Satisfy the individuals need for
affiliation.
2. Develop, enhance, and confirm the
individuals self-esteem and sense of
identity.
3. Give individuals an opportunity to
test and share their perceptions of
social reality.
4. Reduce the individuals anxieties and
feelings of insecurity and powerless-
ness.
5. Provide a problem-solving mechanism
for personal and interpersonal problems.

Tuckmans Five-Stage Theory
Tuckmans Five-Stage Theory
of Group Development
of Group Development
CD12-4a
Figure 12-2a
Performing
Adjourning
Norming
Storming
Forming
Return to
Independence
Dependence/
Interdependence
Independence

Tuckmans Five-Stage Theory
Tuckmans Five-Stage Theory
of Group Development (continued)
of Group Development (continued)
CD12-4b
Figure 12-2b
Individual
Issues
Forming Storming Norming Performing
How do I fit
in?
Whats my
role here?
What do the
others expect
me to do?
How can I best
perform my
role?
Group
Issues
Why are we
here?
Why are we
fighting over
whos in
charge and who
does what?
Can we agree
on roles and
work as a
team?
Can we do the
job properly?

A Role Episode
A Role Episode
Role Sender

Perceived organizational/
group requirements

Comparative evaluation of
- Role expectations for
focal person
- Focal persons behavior
Focal Person

Perceived role expectations

Experienced role overload,


role conflict, role ambiguity

Constructive/destructive
responses
Role
Modeling
Communication
of approval
or need for
change
Feedback
CD12-5
Figure 12-3

Ability of Israeli Tank-Crew Members and
Ability of Israeli Tank-Crew Members and
Improvements in Effectiveness
Improvements in Effectiveness
CD12-6
Figure 12-4
High-high-high
ability tank crews
Higher than expected
effectiveness
High-high-low or
high-low-low ability
tank crews
Low-low-low
ability tank crews
Lower than expected
effectiveness
Large increase in
effectiveness
Small increase in
effectiveness

A Contingency Model for
A Contingency Model for
Staffing Work Groups
Staffing Work Groups
CD12-7
Figure 12-5

Improve performance
of all work groups

Train and develop


new talent

Maximize performance
of best group(s)
Staffing
decision
Concentrate
talent
Spread talent
around
Objective(s)

Interpersonal Trust Involves a
Interpersonal Trust Involves a
Cognitive Leap
Cognitive Leap
CD13-4
Figure 13-3
Firsthand knowledge
of other persons
reliability and
integrity
Distrust Trust
Cognitive leap
Faith in the other persons
good intentions
Assumption that other person
will behave as desired

Basic Distinctions Among
Basic Distinctions Among
Quality Circles, Virtual Teams and
Quality Circles, Virtual Teams and
Self-Managed Teams
Self-Managed Teams
CD13-5a
Table 13-5a
Quality Circles Virtual Teams
Self-Managed
Teams
Type of team
(see Table 13-2)
Type of
empowerment
(see Table 16-2)
Members
Advice
Advice or project
(usually project)
Production,
project, or action
Consultation
Consultation,
participation,
or delegation
Delegation
Production/service
personnel
Managers are
technical
specialists
Production/service,
technical
specialists

Basic Distinctions Among
Basic Distinctions Among
Quality Circles, Virtual Teams and
Quality Circles, Virtual Teams and
Self-Managed Teams (continued)
Self-Managed Teams (continued)
CD13-5b
Table 13-5b
Quality Circles Virtual Teams
Self-Managed
Teams
Basis of
membership
Relationship to
organization
Amount of face-
to-face
communication
Voluntary
Assigned
(some voluntary)
Assigned
Parallel
Parallel or
integrated
Integrated
Strictly face-
to-face
Periodic to
none
Varies, depending
on use of
information
technology

Survey Evidence: What Self-
Survey Evidence: What Self-
Managing Teams Manage
Managing Teams Manage
CD13-6
Table 13-6
Percentage of Companies Saying Their Self-Managing Teams
Perform These Traditional Management Functions by Themselves.
Schedule work assignments 67%
Work with outside customers 67
Conduct training 59
Set production goals/quotas 56
Work with suppliers/vendors 44
Purchase equipment/services 43
Develop budgets 39
Do performance appraisals 36
Hire co-workers 33
Fire co-workers 14

The Evolution of Self-Managed
The Evolution of Self-Managed
Work Teams
Work Teams
CD13-7
Figure 13-4
Managerial control of groups
structure, staffing, and task
procedures
Group control of its own
structure, staffing, and
task procedures
Traditional
Work Groups
Semiautonomous
Work Groups
Self-Managed
Teams

An Updated Contact Model for
An Updated Contact Model for
Minimizing Intergroup Conflict
Minimizing Intergroup Conflict
CD14-3
Figure 14-2

Conflict within the


group is high

There are negative


interactions between
groups (or between
members of those
groups)

Influential third-party
gossip about other group
is negative

Work to eliminate specific negative


interactions between groups (and
members).

Conduct team building to reduce


intragroup conflict and prepare
employees for cross-functional teamwork.

Encourage personal friendships and


good working relationships across
groups and departments.
Foster positive attitudes toward
members of other groups (empathy,
compassion, sympathy).

Avoid or neutralize negative gossip


across groups or departments.
Recommended actions:
Level of perceived
intergroup conflict tends
to increase when:
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

Stimulating Functional Conflict
Stimulating Functional Conflict
CD14-4a
Figure 14-3a
A Devils Advocate Decision Program The Dialectic Decision Method
1
A proposed course of action
is generated.
1
A proposed course of action
is generated.
2
A devils advocate (individual
of group) is assigned to
criticize the proposal.
2
Assumptions underlying the
proposal are identified.
3
The critique is presented
to key decision makers.
3
A conflicting counter-
proposal is generated based
on different assumptions.
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

Stimulating Functional
Stimulating Functional
Conflict (continued)
Conflict (continued)
CD14-4b
Figure 14-3b
A Devils Advocate Decision Program The Dialectic Decision Method
6
The decision is monitored.
6
The decision is monitored.
4
Any additional information
relevant to the issues is
gathered.
4
Advocates of each position present
and debate the merits of their
proposals before key decision makers.
5
The decision to adopt, modify,
or discontinue the proposed
course of action is taken.
5
The decision to adopt either
position, or some other position,
e.g., a compromise, is taken.
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

Five Conflict-Handling Styles
Five Conflict-Handling Styles
CD14-5
Figure 14-4
Integrating Obliging
Dominating Avoiding
Compromising
High Low
High
Low
C
o
n
c
e
r
n

f
o
r

O
t
h
e
r
s
Concern for Self
Source: MA Rahim, A Strategy for Managing Conflict in Complex Organizations, Human Relations, January 1985, p 84. Used with
authors permission.

A Perceptual Model of Communication
A Perceptual Model of Communication
CD15-2
Figure 15-1
Noise
Sender
Receiver
decodes
Receiver
creates
meaning
Transmitted
on medium
Message Encoding
Encoding Message
Transmitted
on medium
Source
decodes

Messages Sent and Received by
Messages Sent and Received by
Communication Medium
Communication Medium
0
10
20
30
40
50
60
70
T
e
l
e
p
h
o
n
e
E
-
M
a
i
l
V
-
M
a
i
l
P
o
s
t
.

M
a
i
l
I
n
t
e
r
-
O
f
f
i
c
e

M
a
i
l
F
a
x
P
o
s
t
-
I
t
P
h
o
n
e

M
e
s
s
a
g
e
s
P
a
g
e
r
C
e
l
l

P
h
o
n
e
O
v
e
r
n
i
g
h
t
E
x
p
r
e
s
s

M
a
i
l
T
o
t
a
l
201
CD15-3
Figure 5-2

A Contingency Model for Selecting
A Contingency Model for Selecting
Communication Media
Communication Media
CD15-4
Figure 15-4
Low
Low
R
i
c
h
n
e
s
s

o
f

C
o
m
m
u
n
i
c
a
t
i
o
n

M
e
d
i
u
m
High
Complexity of Problem/Situation
High
Z
o
n
e

o
f

e
f
f
e
c
t
i
v
e

c
o
m
m
u
n
i
c
a
t
i
o
n
Overload zone
(medium provides
more information
than necessary)
Oversimplification zone
(medium does not
provide necessary
information)
Formal
numeric
Formal
written
Personal
written
Telephone
Face-to-face

Communication Competence Affects
Communication Competence Affects
Upward Mobility
Upward Mobility
CD15-5
Figure 15-5
Situational
Factors

Company
philosophy
on openness

Company policy
and procedures

Organizational
climate

Geographic
location of
organization
Communication
Abilities/Traits

Cross-cultural
awareness

Assertiveness

Aggressiveness

Defensiveness

Active listening
Individuals
Involved

A friend

Someone you do
not trust

A superior

A subordinate
Communication
competence
Upward
mobility

Communication Differences
Communication Differences
between Women and Men
between Women and Men
CD15-6a
Table 15-3a
Linguistic
Characteristic
Men Women
Taking
Credit
Greater use of I statements
(e.g., I did this and I did
that); more likely to boast
about their achievements
Greater use of We
statements (e.g., We did
this and We did that);
less likely to boast about
their achievements
Displaying
Confidence
Less likely to indicate that
they are uncertain about an
issue
More likely to indicate a lack
of uncertainty about an
issue

Communication Differences
Communication Differences
between Women and Men (continued)
between Women and Men (continued)
CD15-6b
Table 15-3b
Linguistic
Characteristic
Men Women
Asking
questions
Less likely to ask questions
(e.g., asking for directions)
More likely to ask questions
Conversation
Rituals
Avoid making apologies
because it puts them in a
one-down position
More frequently say Im
sorry

Communication Differences
Communication Differences
between Women and Men (continued)
between Women and Men (continued)
CD15-6c
Table 15-3c
Linguistic
Characteristic
Men Women
Giving
feedback
More direct and blunt
More tactful; tend to
temper criticism with praise
Giving
compliments
Stingy with praise
Pay more compliments
than men
Indirectness
Indirect when it comes to
admitting fault or when they
dont know something
Indirect when telling others
what to do

Four Leadership Styles Derived
Four Leadership Styles Derived
from the Ohio State Studies
from the Ohio State Studies
CD17-2
Figure 17-2
High structure,
high consideration
The leader provides a lot of guidance
about how tasks can be completed
while being highly considerate of
employee needs and wants.
Low structure,
high consideration
Less emphasis is placed on
structuring employee tasks while the
leader concentrates on satisfying
employee needs and wants.
High structure,
low consideration
Primary emphasis is placed on
structuring employee tasks while
the leader demonstrates little
consideration for employee needs
and wants.
Low structure,
low consideration
The leader fails to provide necessary
structure and demonstrates little
consideration for employee needs
and wants.
Low High
Initiating Structure
Low
High
C
o
n
s
i
d
e
r
a
t
i
o
n
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

The Leadership Grid
The Leadership Grid
CD17-3
Figure 17-3
Low 1 2 3 4 5 6 7 8 9 High
High
9
8
7
6
5
4
3
2
1
Low
C
o
n
c
e
r
n

f
o
r

P
e
o
p
l
e
1,1
Impoverished
management
1, 9
Country club
management
5,5
Middle-of-the
road management
9,9
Team
management
9,1
Authority-
compliance
Source: From Leadership Dilemmas - Grid Solutions, p 29 by Robert R Blake and Anne Adams McCanse.
Copyright 1991 by Robert R Blake and the estate of Jane S Mouton. Used with permission. All rights reserved.
Concern for Production

CD17-4
Figure 17-4
Representation of Fiedlers
Representation of Fiedlers
Contingency Model
Contingency Model
Situational
Control
High Control
Situations
Moderate
Control Situations
Low Control
Situations
Leader-member
relations
Task Structure
Position Power
Good Good Good
High High High
Strong Weak Strong
Good Poor Poor
Low High High
Weak Strong Strong
Poor Poor
Low Low
Strong Weak
Situation I II III IV V VI VII VIII
Optimal
Leadership
Style
Task Motivated
Leadership
Relationship
Motivated Leadership
Task Motivated
Leadership
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

Houses Path-Goal Theory
Houses Path-Goal Theory
CD17-5
Figure 17-5
Employee Characteristics
- Locus of control
- Task ability
- Need for achievement
- Experience
- Need for clarity
Environmental Factors
- Employees task
- Authority system
- Work group
Leadership Styles
- Directive
- Supportive
- Participative
- Achievement oriented
Employee Attitudes
and Behavior
- Job satisfaction
- Acceptance of leader
- Motivation
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

Selling
S2
Explain decisions and
provide opportunity for
clarification
Hersey and Blanchards
Hersey and Blanchards
Situational Leadership Theory
Situational Leadership Theory
Participating
S3
Share ideas and
facilitate in
decision making
CD17-6
Figure 17-6
Follower-Directed Leader-Directed
Low
Low
High
High
Leader Behavior
Task Behavior
Follower Readiness
High Moderate Low
R4 R3 R2 R1
R
e
l
a
t
i
o
n
s
h
i
p

B
e
h
a
v
i
o
r
(
s
u
p
p
o
r
t
i
v
e

b
e
h
a
v
i
o
r
)
Delegating
S4
Turn over
responsibility for
decisions and
implementation
Telling
S1
Provide specific
instructions and closely
supervise performance
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

Charismatic Model of Leadership
Charismatic Model of Leadership
Organizational
culture
Leader
behavior
Effects on
followers and
work groups
Outcomes
CD17-7a
Figure 17-7a

Adaptive

Leader
establishes a
vision

Leader
establishes high
performance
expectations and
displays
confidence in
him/herself and
the collective
ability to
realize the vision

Increased
intrinsic
motivation,
achievement
orientation, and
goal pursuit

Increased
identification
with the leader
and the
collective
interests of
organizational
members

Personal
commitment
to leader
and vision

Self-
sacrificial
behavior

Organiza-
tional
commitment

Task
meaningful-
ness and
satisfaction
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

A Model of Occupational Stress
A Model of Occupational Stress
CD18-2
Figure 18-1
Individual Level
Group Level
Organizational
Level
Extraorganizational
Behavioral
Cognitive
Physiological
Stressors Outcomes
Stress
Individual
Differences

Burnout
Burnout
CD18-3a
Figure 18-2
Burnout: a condition of emotional exhaustion and negative attitude.
Personal Stressors
Job and Organizational
Stressors
Emotional Exhaustion
Depersonalization
Feeling a Lack Of
Personal Accomplishment
Attitudinal and
Behavioral
Symptoms
A Model of Burnout

A Model of Social Support
A Model of Social Support
CD18-4
Figure 18-3
Social Support: the amount of helpfulness derived from social
relationships.
Potential stressful event
Perceived availability of
support resources
Purpose of support
Engage support
Effect of social support on
reducing stress and stress outcomes
Support
not perceived
Support
perceived
but not
used
and used

A Model of the Coping Process
A Model of the Coping Process
CD18-5
Figure 18-4
Coping: the process of managing stress.
Situational Situational
factors
Personal
factors
Cognitive
appraisal of
stressor
Harmful?
Threatening?
Challenging?
Coping
strategies
Control
Escape
Symptom
Management

Four Characteristics Common To All
Four Characteristics Common To All
Organizations
Organizations
CD19-2
Figure 19-1
The McGraw-Hill Companies, Inc.,
2000
Hierarchy of
authority
Coordination
of effort
Division
of labor
Common
goal

Sample Organization Chart
Sample Organization Chart
for a Hospital
for a Hospital
CD19-3a
Figure 19-2a
The McGraw-Hill Companies, Inc.,
2000
Board of Directors
Chief Executive
Officer
Strategic
Planning
Advisor
Legal
Counsel
President
Cost-
Containment
Staff
Executive
Administrative
Staff
Executive
Medical
Director

Sample Organization Chart
Sample Organization Chart
for a Hospital (continued)
for a Hospital (continued)
CD19-3b
Figure 19-2b
The McGraw-Hill Companies, Inc.,
2000
Executive
Administrative
Staff
Executive
Medical
Director
Dir.
Of
Human
Resources
Dir.
Of
Admissions
Dir.
Of
Accounting
Dir.
Of
Nutrition
& Food
Services
Dir.
Of
Patient
& Public
Relations
Dir.
X-Ray &
Lab
Services
Dir.
Of
Surgery
Dir.
Of
Pharmacy
Chief
Physician
Dir.
Of
Out-
Patient
Serices

The External and Internal Forces
The External and Internal Forces
for Change
for Change
CD20-2
Figure 20-1
Demographic Characteristics
*Age *Education
* Skill level *Gender
* Immigration
Technological Advancements
* Manufacturing automation
* Office automation
Market Changes
* Mergers and acquisitions
* Domestic and international competition
* Recession
Social and Political Pressures
*War *Values
* Leadership
External Forces
Human Resource Problems/Prospects
*Unmet needs *Job dissatisfaction
*Productivity *Participation/
*Absenteeism and suggestions
turnover
Managerial Behavior/Decisions
* Conflict * Leadership
* Reward systems * Structural
reorganization
Internal Forces
The need for change

A Generic Typology of
A Generic Typology of
Organizational Change
Organizational Change
CD20-3
Figure 20-2
Adaptive
change
Innovative
change
Radically
innovative
change
Reintroducing a
familiar practice
Introducing a
practice new to the
organization
Introducing a
practice new to
the industry
Low High

Degree of complexity, cost


and uncertainty

Potential for resistance to


change

A Systems Model of Change
A Systems Model of Change
CD20-4
Figure 20-3
Target Elements of Change
Organizing
Arrangements
Goals
Social
Factors
Methods
People
Internal
* Strengths
* Weaknesses
External
* Opportunities
* Threats
* Organizational
Level
* Department/
group level
* Individual
level
Inputs Outputs
S
t
r
a
t
e
g
y