MGT 3120 - Chapter 8-16 Notes PDF

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MGT 3120 - Chapter 8-16 Notes...

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Chapter 8 A leader’s job is to help inspire every employees to help execute strategy - Consistently and constantly demonstrate, celebrate, and model the cultural traits that reinforce strategy - Leader’s style might also be different from the org’s culture for better performance - strategy - consists of the large-scale action plans that reflect the org’s vision and are used to set the direction for the org - Managers must determine the right kind of org culture and org structure Organizational culture/corporate culture - the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments - Shared among a group of people in the workplace - Passed onto new employees by way of socialization and mentoring - Culture is the “social glue” that binds members of the org together, it helps employees understand why the org does what it does and how it intends to accomplish its long-term goals - Culture can have both positive and negative effects on employees and overall corporate performance - radical candor/front-stabbing - term used to describe workspaces where employees have embraced the culture of dropping the polite workplace veneer and speaking frankly to each other no matter what - What drives an org culture? - Founder’s values, industry and business environment, national culture, org’s vision and strategies, and behavior of leaders Organizational structure - a formal system of task and reporting relationships that coordinates and motivates an org’s members so that they can work together to achieve the org’s goals - Concerned with who reports to whom and who specializes in what work - Top managers should align the org’s vision and strategies with its organizational culture and organizational structure Levels of org culture - Observable artifacts - physical manifestations - Manner of dress, awards, myths and stories about the company, rituals and ceremonies, decorations, visible behavior exhibited by managers and employees - Espoused values - explicitly stated values and norms preferred by an org - May be put forth by the firm’s founder or top managers - enacted values - implicit values and norms that are actually exhibited by the org - Basic assumptions - non-observable, core values of the org’s culture - Often taken for granted and are difficult to change competing values framework (CVF) - provides a practical way for managers to understand, measure, and change org culture Organizational effectiveness varies along two dimensions: - Horizontally: expresses the extent to which an org focuses its attention and efforts inward on internal dynamics and employees vs. outward towards its external environment and its customers/shareholders - internal focus and integration vs. external focus and differentiation - Vertically: expresses the extent to which an org prefers flexibility and discretion vs. stability and control Four types of org culture - Clan culture - type of culture that has an internal focus and values flexibility rather than stability and control - Encourages collaboration among employees, cohesion through consensus, job satisfaction - Devote considerable resources to hiring and developing employees

- End result: profitability and low turnover rates - Adhocracy culture - has an external focus and values flexibility - Focuses on creation of new products and services and creating innovative products by being adaptable, creative, and quick to respond to changes in the marketplace - Employees take risks and experiment with new ways of getting things done - Well-suited for start-up companies, companies where the industry is undergoing constant change, and companies in mature industries that are in need of innovation to grow - Market culture - has a strong external focus and values stability and control - Driven by competition and a strong desire to deliver results - Customers, productivity, and profits take precedence over employee development and satisfaction - Employees who deliver are rewarded - Hierarchy - has an internal focus and values stability and control - Formalized, structured work environment aimed at achieving effectiveness through a variety of control mechanisms that measure efficiency, timeliness, and reliability in the creation and delivery of products How employees learn culture - symbol - an object or action that represents and idea or quality - Artifacts used to convey an org’s most important values - story - a narrative based on true events, which is repeated and sometimes embellished upon to emphasize a particular value - Told and retold by members about incidents in the org’s history - hero - a person whose accomplishments embody the values of the org - rites and rituals - activities and ceremonies that celebrate important occasions and the accomplishments in the org’s life - Can be planned or unplanned - organizational socialization - the process by which people learn the values, norms, and required behaviors that permit them to participate as members of an org Occurs in 3 phases and can take weeks or even years: - anticipatory socialization phase - when a person learns what the org’s job needs and values are and how one’s own needs, values, and skills might fit in BEFORE one joins the org - encounter phase - when a person is first hired and comes to learn what the org is really like and how to adjust his or her expectations - Advanced by various familiarization programs/onboarding programs - change and acquisition phase - when the employee comes to understand his/her work role and now must master the necessary skills and tasks and learn to adjust to the work’s group values and norms - Advanced through goal setting, incentives, employee feedback, continued support, and ceremonies/celebrations Importance of culture - An org’s culture matters. The type of org’al culture can be a source of competitive advantage - Employees have more positive work attitudes when working on orgs with clan cultures - Clan and market cultures are more likely to deliver higher customer satisfaction and market share - Operational outcomes, quality, and innovation are more strongly related to clan, adhocracy, and market cultures than to hierarchal ones - An org’s financial performance is related to market and hierarchy culture - Companies with market cultures tend to have more positive org’al outcomes

person-organization fit - reflects the extent to which a person’s personality and values match the climate and culture in an org - A good fit is important because it is associated with more positive work attitudes and task performance, lower stress, and fewer expressions of intention to quit - How an employee fits into the company can be considered one of the most important criterion of the interview process - Identify your strengths, weaknesses, and values and do the same for the org you’re interviewing with by researching it online and talking with current employees Ways culture is established in an org - Formal statements embed preferred culture of the org’s philosophy, mission, vision, and values, as well as materials used for recruiting, selecting, and socializing employees - Slogans and sayings express desirable corporate culture - Rites and rituals that represent the planned and unplanned activities and ceremonies that are used to celebrate important events or achievements - Stories, legends, and myths are narratives about an actual event that happened within the org that helps to symbolize the org’s vision and values to its employees - Leaders and their reactions organizational crises and critical incidents send a clear cultural message - Role modeling, training, and coaching can be offered as structured training programs to provide an in-depth introduction to org’al values - Physical design of offices and their layout can be experimented with to encourage employee productivity and send a strong message about the culture - Rewards, titles, promotions and bonuses can be offered, as rewards and status symbols are among the strongest ways to embed org’al culture - Organizational goals and performance criteria can be established for recruiting, selecting, developing, promoting, dismissing, and retiring people to reinforce the desired org’al culture - Measurable and controllable activities can be controlled by an org’s leader, who should also pay attention to, measure, and control a number of activities, processes, or outcomes that can foster a certain culture - Organizational structure or hierarchical structure found in most traditional orgs is more likely to reinforce a culture oriented toward control and authority compared with the flatter orgs that eliminate mgmt layers in favor of giving employees more power - Organizational systems and procedures such as electronic networks can be used to increase collaboration among employees and to improve innovation, quality, and efficiency Organization - a system of consciously coordinated activities or forces of two or more people - A crew of two people coordinating their activities is as much an org as a company with thousands of employees Types of orgs - for-profit organization - formed to make money or profits by offering products/services - nonprofit organization - formed to offer services to some clients, not to make a profit - mutual-benefit organization - voluntary collectives whose purpose is to advance members’ interests - Managers in these three different types of orgs are required to focus on different goals, either making profits, delivering public services, or satisfying member needs organization chart - a box-and-lines illustration showing the formal lines of authority and the org’s official positions or work specializations - Reveals the vertical hierarchy of authority and horizontal specialization in an organizational structure - Vertical hierarchy of authority: who reports to whom, chain of command

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Horizontal specialization: who specializes in what work

Common elements of an org - Common purpose - unifies employees or members and gives everyone an understanding of the org’s reason for being - Coordinated effort - the coordination of individual efforts into a group or organizationwide effort - Division of labor/work specialization - the arrangement of having discrete parts of a task done by different people - Hierarchy of authority/chain of command - a control mechanism for making sure the right poeple do the right things at the right time - flat organization - an org with an organizational structure with few or no levels of middle mgmt between top managers and those reporting to them - unity of command - principle in which an employee should report to no more than one manager in order to avoid conflicting priorities and demands Common elements in some orgs - Span of control/span of management - refers to the number of people reporting directly to a given manager - Narrow span of control - when a manager has a limited number of people reporting - An org where there are many levels with narrow spans of control are considered “tall” - Wide span of control - when a manager has several people reporting - An org where there are few levels with wide spans of control are considered “flat” - Allow workers greater autonomy in decision making - More common and more efficient in modern day when aided by technology to communicate and monitor 30+ employees - Authority, responsibility, and delegation - With authority goes accountability, responsibility, and the ability to delegate one’s authority - Authority - refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources - Different from power - the extent to which a person is able to influence others so they respond to orders - Accountability - refers to the idea that managers must report and justify work results to the managers above them - Responsibility - the obligation you have to perform the tasks assigned to you - Delegation - the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy - Delegation is a necessary part of managing and most managers are expected to delegate as much of their work as possible, don’t get hung up on perfection - 70% rule - if the person you would like to perform the task is able to do it at least 70% as well as you can, you should delegate it. - It can be frustration that the task won’t be done with the same degree of perfection or perceived perfection that you could achieve, but you have to learn to let go of that perfection - line managers - managers who have authority to make decisions and usually have people reporting to them, indicated on the org chart by a solid vertical line - staff personnel - employees who have authority functions; can provide advice, recommendations, and research to line managers, indicated on the org chart by a dotted horizontal line - Centralization vs decentralization of authority

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Centralized authority - principle in which important decisions are made by higher-level managers - Authority is concentrated at the top of the hierarchy - Advantages: less duplication of work because fewer employees perform the same task, task is performed by a department of specialists - Procedures are all uniform and thus easier to control Decentralized authority - principle in which important decisions are made by middle-level and supervisory-level managers - Power has been delegated throughout the org - Advantages: managers are encouraged to solve their own problems rather than giving the decision to a higher level - Decisions are made more quickly, increasing the org’s flexibility and efficiency

Organizational design - designing the optimal structures of accountability and responsibility that an org uses to execute its strategies Traditional designs - organizational designs that tend to favor structures that rely on vertical mgmt hierarchy, with clear departmental boundaries and reporting arrangements - Simple structures for small firms - Simple structure - has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization - Form often found in a firm’s very early, entrepreneurial stages when the org is apt to reflect the desires and personality of the owner or founder - Functional structures - structure in which people with similar occupational specialties are put together in formal groups - Divisional structure - structure in which people with diverse occupational specialties are put together in formal groups by similar products/services, customers/clients, or geographic locations - product divisions - divisions that group activities around similar products/services - customer divisions - divisions that group activities around common customers/clients - geographic divisions - divisions that group activities around defined regional locations - Matrix structure - structure in which an org combines functional and divisional chains of command in a grid so that there are two command structures Horizontal designs/team-based design - org’al designs based on teams or workgroups, either temporary or permanent, that are used to improve collaboration and work on shared tasks by breaking down internal boundaries - Cross-functional teams - teams in which managers from different functional divisions are brought together in teams to solve particular problems - Narrow divisional interests → a common interest in solving problems boundaryless organization - a fluid, highly adaptive org whose members, whether it be co-workers, suppliers, customers, or even competitors, come together to collaborate on common tasks - Form of the business is ever-changing and the business relationships are informal - Hollow structure/network structure - structure of a boundaryless org that has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster - Modular structure - structure of a boundaryless org that is oriented around outsourcing certain pieces of a product rather than outsourcing certain processes of the org - Assembles product chunks or modules provided by outside contractors - Virtual structure - structure of a boundaryless org in which members are geographically apart, usually working with e-mail and other forms of IT, yet generally appear to customers as a single, unified org with a real physical location

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Companies can tap into a wider talent pool not limited by geography and save money on real estate Factors to consider when designing an org’s structure - Environmental factors: mechanistic vs. organic - Mechanistic orgs have a centralized hierarchy of authority, many rules and procedures, specialized tasks, formalized comms, few teams/task forces, and a narrow span of control with taller structures - Bureaucratic, with rigid rules and top-down communication - Works best when an org is operation in a stable environment - Organic orgs have a decentralized hierarchy of authority, few rules and procedures, shared tasks, informal comms, many teams/task forces, and a wider span of control with flatter structures - Often referred to as orgs with a loose structure, and sometimes as adhocracies because they operate on an ad hoc basis - improvising as they go along - Works best for orgs in an industry that constantly has to adjust to some sort of change in which the company has to respond quickly to fast-changing consumer tastes - Environmental factors: differentiation vs. integration - differentiation - the tendency of the parts of an org to disperse and fragment - An org that breaks down into more subunits is a more highly differentiated org - Technical specialization and division of labor creates the need to disperse and coordinate with other parts of the org - integration - the tendency of the parts of an org to draw together to achieve a common purpose - An org where specialists work together to achieve a common goal is a highly integrated org - Usually has a formal chain of command, a standardized set of rules and procedures, and uses cross-functional teams and computer networks to communicate and coordinate - Linking strategy, culture, and structure - Companies can begin by offering a single product/product line that requires only a simple structure, but as they grow and their strategies become more ambitious and elaborate, the culture and structure need to change to support those strategies Fitting into an org 1. Assess where and how you fit in the context 2. Figure out how you can effectively adapt 3. Become more adaptable Personal adaptability - the ability and willingness to adapt to changing situations that allows an individual to remain productive during times of org’al change - Focus on being optimistic, see change as an opportunity and have positive expectations about future events and confidence in your ability to adjust - Display a proactive learning orientation - the desire to learn and improve other career readiness competencies, focus on learning and initiating the behavior desired by an org during times of change - Be more resourceful, look for solutions to challenges instead of problems and find creative ideas for improving results - Take ownership and accept responsibility for your actions. Don’t become victim to external influenced because they’re proactive, adapt to something new and forego the old. Don’t hold grudges or needlessly bring up mistakes, instead absorb, understand, and move on - Expand your perspective by asking questions that will help broaden your perspective when faced with a challenge

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What surprises you about the situation? What are impossible options in this situation? What data are you ignoring?

Chapter 9 human resource management - consists of the activities managers perform to plan for, attract, develop, and retain and effective workforce - Deals with staffing, as putting employees first can be foundation for success in a company - Has become part of the strategic planning process - Deal with not only employee paperwork and legal accountability, but also with helping to support the org’s overall strategy - Purpose is to get the optimal work performance that will help the company’s mission and goals human capital - the economic or productive potential of empl...