MANGT. 242 SLIDES - EXTRA

Slide 1: 

MGMT. 242

Key Principles of Management – pp. 7-32 : 

Key Principles of Management – pp. 7-32 Definition of Management Four functions of Management Organizational Performance Managers Skills Management Types Being a Manager? Managing Small Businesses and Nonprofits Managing During Turbulent Times Management and the New Workplace

Slide 3: 

The attainment of organizational goals in an effective and efficient manner….. Definition of Management

Slide 4: 

The attainment of organizational goals in an effective and efficient manner through these key functions: pp.7-10 … Planning, Organizing, Leading, and Controlling organizational resources …………………….PLUS ------------------------------------------------------------------ Organizational Performance Definition of Management

Vertical Top to Bottom – Hierarchy “Chain of Command” : 

Management Hierarchy – p.15 Vertical Top to Bottom – Hierarchy “Chain of Command” Horizontal Functions Across the Organization

Slide 6: 

Managing in Turbulent Times I. The Definition of Management II. The Four Management Functions A. Planning B. Organizing C. Leading D. Controlling III. Organizational Performance IV. Management Skills A. Conceptual Skills B. Human Skills C. Technical Skills V. Management Types A. Vertical Differences B. Horizontal Differences VI . What Is It Like to Be a Manager? A. Manager Activities B. Manager Roles VII. Managing in Small Business and Not-For-Profit Organizations VIII. Management and the New Workplace A. Forces on Organizations B. New Management Competencies IX. Turbulent Times: Managing Crises and Unexpected Events

Slide 7: 

The Evolution of Management Thinking Ch. 2 Management and Organization Classical Perspective Scientific Management Bureaucratic Organizations Administrative Principles Humanistic Perspective A. The Human Relations Movement B. The Human Resources Perspective C. The Behavioral Sciences Approach Management Science Perspective Recent Historical Trends Systems Theory Contingency View Total Quality Management New Management Thinking for Turbulent Times The Learning Organization B. Managing the Technology-Driven Workplace

Group – Define & Explain : 

Group – Define & Explain Characteristics of Scientific Management Characteristics of Bureaucratic Organizations Administrative Principles Fayol -- General Principles of Management Human Relations Movement Human Resources Movement Behavioral Sciences Movement Theory X -- Theory Y Management Science Perspective Systems Theory Contingency View of Management Total Quality Management (TQM) Elements of a Learning Organization >>>>

Case Study – p. 75Once Upon a Time At Disney : 

Case Study – p. 75Once Upon a Time At Disney Chapter 2

Slide 10: 

http://www.cbsnews.com/stories/2004/06/30/eveningnews/main626854.shtml

Slide 11: 

242 WEC QUIZ / Research Topic NORTHWEST AIRLINES – From a Management focus, what challenges confront the airline and it’s employees? Detail the challenges and discuss. BEST BUSINESSES – Identify one company that provides an example of top quality management skills. Detail their management style and explain it’s Importance. -- Due next Class Computer written – Name on each page Response: 2 Pages per question:

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FOR IMMEDIATE RELEASE Contact: Catherine Engelke TechTarget 781-657-1539 cengelke@techtarget.com TechTarget Named One of "Best Places to Work" in Massachusetts for Second Year in a Row Boston Business Journal Recognizes TechTarget forCreating a Positive Work Environment that Attracts and Retains Employees NEEDHAM, Mass. – May 17, 2005 – Information technology (IT) media company TechTarget announced today that it has been selected by the Boston Business Journal as one of the "Best Places to Work" in Massachusetts. Only 60 companies earned a spot on the newspaper’s annual list, which honors companies that have created a positive, satisfying work environment that enables them to attract and retain employees. Boston Business Journal editors compiled the “Best Places to Work” list based on the results of more than 18,000 employee-satisfaction surveys on such factors as work environment, work-life balance, job satisfaction and advancement opportunities, management, compensation, and benefits. The confidential survey was conducted by QMR Market Research, Inc. "We are proud to be recognized once again as one of the best places to work in Massachusetts," said Arden Port, TechTarget vice president of human resources. "We believe TechTarget's work culture and the degree of autonomy we encourage in our employees has been a major force behind the company's remarkable growth. We give our employees the tools and flexibility they need to achieve balance in their lives and enhance productivity at work, and we measure them on results. It's a formula that has allowed us grow our business by attracting and retaining the top talent in the industry." “Accommodating employees’ personal needs pays back dividends of loyalty and productivity,” said Boston Business Journal publisher Mike Olivieri. “The companies on our list recognize that their commitment to employees is especially important as the economy strengthens and competition for talent continues to grow.” Headquartered in Needham, MA, TechTarget employs over 400 employees in Massachusetts, in the company’s San Francisco sales office, and in other locations across the country. The company continues to hire aggressively to accommodate growth and projects it will have over 500 employees by year-end. For a list of TechTarget job opportunities, see www.techtarget.com/html/job_opps.htm. About TechTarget TechTarget publishes integrated media that enable information-technology (IT) marketers to reach targeted communities of IT professionals and executives in all phases of the technology decision-making and purchase process. Through its industry-leading Web sites, magazines and conferences, TechTarget delivers measurable results that help IT marketers generate qualified sales leads, shorten sales cycles and grow revenues. Founded in late 1999, TechTarget has won dozens of awards for its innovation and industry leadership, including more than 25 awards for editorial excellence in the past three years alone. In 2004, TechTarget was named to the Inc. 500 list of fastest-growing private companies in the United States. TechTarget’s more than 2,500 advertisers include the leading IT companies in the world, among them, IBM, Microsoft, HP, Cisco, Oracle, Sun Microsystems, and Intel. More information about TechTarget is available at http://www.techtarget.com ###

Slide 13: 

“OPEN DOOR POLICY” ---- TECH TARGET NO GUIDELINES FOR: WORK SCHEDULES PERSONAL LEAVE SICK DAYS VACATION TIME ‘PEOPLE CAN COME AND GO AS THEY PLEASE’ ……………. HIGH STANDARDS FOR PERFORMANCE HIGH ACHIEVEMENT EXPECTED

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Web    Images    Groups    News    Froogle    Local    Scholar    more » Advanced Search  Preferences N northwest strike in Minnesota ational Long Term Care Ombudsman Resource Center MN State Employees Strike 10/1/01 ... up to assist workers in mass layoffs --such as last week's devastating Northwest Airlines cutbacks -- went on strike. ...www.ltcombudsman.org/ombpublic/49_468_2143.cfm - 33k - Jan 18, 2006 - Cached - Similar pages Mechanics reject Northwest's offer“Our striking members refused to bow down to Northwest’s arrogant, self-enrichingmanagement and ... 425 Portland Av. S., Minneapolis, MN 55488 (612) 673-4000.www.startribune.com/1778/story/154464.html - 18k - Cached - Similar pages NWA's plan could bring strike, pilot leaders say"A successful pilot strike at Northwest Airlines will shut the airline down,"Mark McClain, ... 425 Portland Av. S., Minneapolis, MN 55488 (612) 673-4000.www.startribune.com/1778/story/161621.html - 16k - Cached - Similar pages[ More results from www.startribune.com ] Mechanics` feelings mixed over strikeNorthwest`s mechanics stay on strike. EAGAN, MN, United States -- Strikingmechanics of Northwest Airlines ... Northwest mechanics to vote on proposal ...news.monstersandcritics.com/business/ article_1044416.php/Mechanics%60_feelings_mixed_over_strike - 41k - Cached - Similar pages Northwest`s mechanics stay on strikeEAGAN, MN, United States -- Striking mechanics at Northwest Airlines ...Northwest`s recovery moves on two fronts. EAGAN, MN, United States ...news.monstersandcritics.com/ business/article_1072428.php - 41k - Cached - Similar pages Fight Back! August 2005 - Northwest Workers' Strike Solidarity ...Minneapolis, MN - More than 200 public employees, Aircraft mechanics and otherworkers rallied here, August 30, to support the strike at Northwest Airlines. ...www.fightbacknews.org/2005/04/nwarally0830.htm - 10k - Cached - Similar pages Daily Blog: The Northwest Strike: Another (Bad) Watershed MomentLooking at this Northwest strike, all I can think is: it's the 1981 ... they aretrying to have a gd d-mn club (credit to the great scene in Matewan). ...workinglife.typepad.com/daily_blog/ 2005/08/the_northwest_s.html - 106k - Cached - Similar pages Daily Blog: PATCO or P-9? Does It Matter?The same dynamic worries me with the Northwest strike (particularly because ittouches the public/consumer so directly) and how other companies might ...workinglife.typepad.com/daily_blog/ 2005/08/patco_or_p9_doe.html - 41k - Cached - Similar pages[ More results from workinglife.typepad.com ] Support Striking Workers at Northwest AirlinesA Source for Continuing Information on the Northwest Airlines Strike · At Northwest,Both Labor Federations Are Failing Test of Strike Solidarity ...www.laborstandard.org/AFLCIO/ - 5k - Cached - Similar pages Northwest mechanics rally in MinnesotaKip Hedges, a Northwest baggage handler and former president of the IAM at theTwin Cities airport, called the strike by the mechanics “the battle of ...www.wsws.org/articles/2005/aug2005/nwa-a29.shtml - 17k - Cached - Similar pages[ More results from www.wsws.org ] ©2006 Google

Important Terms:- Definition of Management:- Planning, - Organizing, - Leading, - Controlling organizational resources- Organizational Performance- efficient - effective - Crisis Management - Multitasking -new workplace - Organizational Environment : 

Important Terms:- Definition of Management:- Planning, - Organizing, - Leading, - Controlling organizational resources- Organizational Performance- efficient - effective - Crisis Management - Multitasking -new workplace - Organizational Environment

Slide 16: 

2

Key Demographic Trends in U.S. : 

Key Demographic Trends in U.S. By 2050 non-Hispanic whites will make up only about half of the population, down from 74% in 1995; and 69% in 2004 Baby boomer generation is aging and losing interest in high-cost goods. Generation Y, rival them in size, will soon rival them in buying power. The single father household is the fastest growing living arrangement, which rose 62% in 10 years. Two-parent and single-mother households are still much more numerous Unprecedented demographic shift = married couple households slipped from 80% in 1950s to just over 50% in 2003. Couples with kids= 25%, with projection 20% by 2010 and 30% of homes inhabited by someone who lives alone.

Bureaucracy of Organizations : 

Bureaucracy of Organizations Division of labor with Clear definitions of authority and responsibility Exhibit 2.3, p. 49 Positions organized in a hierarchy of authority Personnel are selected and promoted on technical qualifications Managers subject to Rules and procedures that will ensure reliable predictable behavior Management separate from the ownership of the organization Administrative acts and decisions recorded in writing

Slide 19: 

3

Slide 20: 

The Environment and Corporate Culture The External Environment General Environment Task Environment The Organization-Environment Relationship Environmental Uncertainty Adapting to the Environment . The Internal Environment: Corporate Culture Symbols Stories . Heroes Slogans Ceremonies Environment and Culture Adaptive Cultures Types of Cultures . Shaping Corporate Cultures for the New Workplace . Managing the High-Performance Culture Cultural Leadership

Organizational Environment : 

Organizational Environment All elements existing outside of the organization that have the potential to affect the it. Manager’s Challenge: IBM, p. 77

External / Organizational Environment : 

External / Organizational Environment General environment – affects organization indirectly Task environment External environment directly impacts Operations Influences operations and performances ------------------------------------------- Internal environment – elements within the organization’s boundaries

Slide 23: 

Many Dimensions: International Dimension Technological Dimension Socio-Cultural Dimension Economic Dimension Organizational Environments

Levels of Corporate Culture : 

Levels of Corporate Culture Visible 1. Artifacts, such as dress, office layout, symbols, slogans, ceremonies 2. Expressed values, such as “The Penney Idea,” “The HP Way” 3. Underlying assumptions and deep beliefs, such as “people are lazy and can’t be trusted” Invisible Culture that can be seen at the surface level Deeper values and shared understandings held by organization members

Levels of Corporate Culture : 

Levels of Corporate Culture Visible 1. Artifacts, such as dress, office layout, symbols, slogans, ceremonies 2. Expressed values, such as “The Penney Idea,” “The HP Way” 3. Underlying assumptions and deep beliefs, such as “people are lazy and can’t be trusted” Invisible Culture that can be seen at the surface level Deeper values and shared understandings held by organization members

Key Demographic Trends in U.S. : 

Key Demographic Trends in U.S. By 2050 non-Hispanic whites will make up only about half of the population, down from 74% in 1995; and 69% in 2004 Baby boomer generation is aging and losing interest in high-cost goods. Generation Y, rival them in size, will soon rival them in buying power. The single father household is the fastest growing living arrangement, which rose 62% in 10 years. Two-parent and single-mother households are still much more numerous Unprecedented demographic shift = married couple households slipped from 80% in 1950s to just over 50% in 2003. Couples with kids= 25%, with projection 20% by 2010 and 30% of homes inhabited by someone who lives alone.

Key Demographic Trends in U.S. : 

Key Demographic Trends in U.S. By 2050 non-Hispanic whites will make up only about half of the population, down from 74% in 1995; and 69% in 2004 Baby boomer generation is aging and losing interest in high-cost goods. Generation Y, rival them in size, will soon rival them in buying power. The single father household is the fastest growing living arrangement, which rose 62% in 10 years. Two-parent and single-mother households are still much more numerous Unprecedented demographic shift = married couple households slipped from 80% in 1950s to just over 50% in 2003. Couples with kids= 25%, with projection 20% by 2010 and 30% of homes inhabited by someone who lives alone.

Corporate Culture Adaptability : 

Corporate Culture Adaptability Adaptive Culture Unadaptive Culture Visible Behavior Expressed Values Managers pay close attention to all their constituencies, especially customers, and initiate change when needed to serve their legitimate interests, even if it entails taking some risks. Managers tend to behave somewhat insularly, politically, and bureaucratically. As a result, they do not change their strategies quickly to adjust to or take advantage of changes in their business environments. Managers care deeply about customers, stockholders, and employees. They strongly value people and processes that can create useful change (e.g., leadership initiatives up and down the management hierarchy). Managers care mainly about themselves, their immediate work group, or some product (or technology) associated with that work group. They value the orderly and risk-reducing management process much more highly than leadership initiatives. Source: John P. Kotter and Jmaes L. Heskett, Corporate Culture and Performance (New York, The Free Press, 1992), 51.

Four Types of Corporate Cultures : 

Four Types of Corporate Cultures Adaptability Culture Achievement Culture Consistency Culture Involvement Culture External Internal Flexibility Stability Strategic Focus Needs of the Environment

Slide 30: 

4

Slide 31: 

Managing in a Global Environment A Borderless World The International Business Environment The Economic Environment Economic Development Infrastructure Resource and Product Markets Exchange Rates The Legal-Political Environment Political Risk and Instability Laws and Regulations The Sociocultural Environment Social Values Other Cultural Characteristics International Trade Alliances GATT and the World Trade Organization European Union North American Free Trade Agreement (NAFTA) Other Trade Alliances The Globalization Backlash Getting Started Internationally Outsourcing Exporting Licensing Direct Investing The Multinational Corporation (MNC) Managing in a Global Environment A. Personal Challenges for Global Managers B. Managing Cross-Culturally

International Environment Factors : 

International Environment Factors Organization Economic Economic development Infrastructure Resource and product markets Per capita Income Exchange rates Economic conditions Legal-Political Political risk Government takeovers Tariffs, quotas, taxes Terrorism, political instability Laws, regulations Sociocultural Socio values, beliefs Language Religion (objects, taboos, holidays) Kinship patterns Formal education, literary Time orientation

The Global Challenge : 

The Global Challenge Companies are finding that to survive they must compete in international markets as well as fend off foreign corporations’ attempts to gain ground in the U.S. Every business must be prepared to deal with the global economy. This is made easier by technology. Offshoring refers to the exporting of jobs from developed countries to less developed countries. Many companies are entering international markets by exporting their products overseas, building manufacturing facilities in other countries, entering into alliances with foreign companies, and engaging in e-commerce

North American Free Trade Agreement -- NAFTA : 

North American Free Trade Agreement -- NAFTA Merged United States, Canada, and Mexico – more that 421 million consumers Breaks down tariffs and trade restrictions on most agriculture and manufactured products New agreements in number of key areas include: agriculture, autos, transport, & intellectual property January, 2004 -10th anniversary

North American Free Trade Agreement -- NAFTA : 

North American Free Trade Agreement -- NAFTA Merged United States, Canada, and Mexico – more that 421 million consumers Breaks down tariffs and trade restrictions on most agriculture and manufactured products New agreements in number of key areas include: agriculture, autos, transport, & intellectual property January, 2004 -10th anniversary

Managing in a Global Environment : 

Managing in a Global Environment Managers must be sensitive to cultural subtleties Managing Cross-culturally by: Leading Decision making Motivating Controlling Managers must be culturally flexible and adapt to new situations Experiential Exercise: Rate your Global Management Potential

Managing in a Global Environment : 

Managing in a Global Environment Managers must be sensitive to cultural subtleties Managing Cross-culturally by: Leading Decision making Motivating Controlling Managers must be culturally flexible and adapt to new situations Experiential Exercise: Rate your Global Management Potential

Four Stages of Globalization : 

Four Stages of Globalization Domestic stage: market potential is limited to the home country production and marketing facilities located at home International stage: exports increase company usually adopts a multi-domestic approach Multinational stage: marketing and production facilities located in many countries more than 1/3 of its sales outside the home country Global (or stateless) stage: making sales and acquiring resources in whatever country offers the best opportunities and lowest cost ownership, control, and top management tend to be dispersed

Exchange Rates : 

Exchange Rates Rate at which one country’s currency is exchanged for another country’s Has become a major concern for companies doing business internationally Changes in the exchange rate can have major implications for profitability of international operations EXAMPLE “ Euro “

Infrastructure : 

Infrastructure A country’s physical facilities that support economic activities Airports, highways, and railroads Energy-producing facilities Communication facilities

Resource and Product Markets : 

Resource and Product Markets When operating in another country... Managers must evaluate market demand To develop plants, resource markets must be available – raw materials and labor Corporate Example – McDonald

Exchange Rates : 

Exchange Rates Rate at which one country’s currency is exchanged for another country’s Has become a major concern for companies doing business internationally Changes in the exchange rate can have major implications for profitability of international operations EXAMPLE “ Euro “

Slide 43: 

5

Ethics and Social Responsibility : 

Ethics and Social Responsibility Chapter 5

Ethics and Social Responsibility- Ethics- Ethical Dilemma- The Organization- Criteria For Ethical Decision Making- Organizational Stakeholders- Social Responsibility- Total Corporate Responsibility>>> The Ethical Organization : 

Ethics and Social Responsibility- Ethics- Ethical Dilemma- The Organization- Criteria For Ethical Decision Making- Organizational Stakeholders- Social Responsibility- Total Corporate Responsibility>>> The Ethical Organization

Slide 46: 

“ True Leaders are responsible for everything, but especially for things gone wrong.”

Slide 47: 

WHAT WOULD COMPANIES DO TO GET MORE PROFIT? (% responding “yes”) Harm Environment ….. (%) Harm Public Safety …. Charge Inflated Prices …. Sell Inferior Products … Workers at Risk …. PUBLIC PERCEPTIONS OF BUSINESS ETHICS

Slide 48: 

WHAT WOULD COMPANIES DO TO GET MORE PROFIT? Harm Environment ….. 47 % Harm Public Health …. 38 Charge Inflated Prices 62 Sell Inferior Products …44 Put Workers at Risk …. 42 PUBLIC PERCEPTIONS OF BUSINESS ETHICS

Slide 49: 

Social Investment Forum News News Release April 12, 2005 Patrick Mitchell  pmitchell@hastingsgroup.com, (703) 276-3266 Todd Larsentodd@socialinvest.org, (202-872-5310) For all other inquiries, please contact us Also see our Index of Forum News Releases. STUDY: SOCIALLY RESPONSIBLE MUTUAL FUNDS ARE FAR TOUGHER ON TRADITIONAL CORPORATE GOVERNANCE RESOLUTIONS THAN “CONVENTIONAL” MUTUAL FUNDS Conventional Mutual Funds Lag SRI Funds by Surprisingly Large 2-to-1 Margin; As Expected: SRI Mutual Funds Also Stronger on Social/Environmental Proxy Issues. WASHINGTON, D.C.//April 12, 2005// Socially responsible mutual funds are considerably stronger proponents of corporate governance shareholder resolutions – such as focusing on poison pills, expensing stock options, golden parachutes, declassifying boards, and “vote no” director campaigns – than are “conventional” mutual funds, according to the surprising conclusion of an extensive new study by the nonprofit Social Investment Forum Foundation (SIFF). The SIFF report analyzed the U.S. mutual fund voting patterns that are now discernible as a result of the first 12 months of mandatory proxy disclosure, a requirement that was strenuously opposed by most of the mutual fund industry. The new study entitled “Mutual Funds, Proxy Voting, and Fiduciary Responsibility: How Do Funds Rate on Voting Their Proxies and Disclosure Practices?” concludes: “Socially responsible investing (SRI) funds as a category support more shareholder-proposed corporate governance resolutions and ‘vote no’ campaigns than their conventional peers by a 2-to-1 margin. They also tend to support more controversial governance resolutions, like separating the CEO and chair positions, or limiting nonaudit services by auditors. SRI funds are also more consistent in their support of popular ‘plain vanilla’ governance issues we examined (poison pills, expensing stock options, golden parachutes, and declassifying the board)—totaling 90 percent support for these four issues, opposed to 72 percent support by ‘conventional’ funds.” Tim Smith, president of the Social Investment Forum and senior vice-president at Walden Asset Management, said: “We now have the facts that allow us to ask the question: Which funds are the true guardians and friends of investor interests? When it comes to mutual funds, there is a clear answer: Socially responsible mutual funds do a much better job of voting independently on a range of issues that make a real difference. No one will be surprised to learn that SRI funds are way ahead of ‘conventional’ mutual funds when it comes to voting on environmental and social issues. But many will be interested to learn that SRI funds have a more effective record than conventional funds in voting on corporate governance issues as well.” KLD Research & Analytics, Inc. President Peter Kinder, noted: "At a minimum, the Securities and Exchange Commission (SEC) has said mutual funds must 'monitor corporate events.' Those events include social and environmental issues. By requiring the funds to report their policies and votes, the Commission has given the funds' beneficiaries the means to judge whether the funds are meeting their duties to them. The funds will have to take these issues very seriously.” As of August 31, 2004, mutual funds and investment advisors were obligated by the SEC to begin disclosing how they vote on proxy issues. Using the new data covering the first 12 months of such disclosure, the SIFF report looks at how 10 socially responsible mutual fund families and 10 large "conventional" mutual fund families voted on 12 proxy issues and major "vote no" campaigns targeting directors for the one-year period from July 1, 2003 - June 30, 2004. The new study is the most comprehensive look so far at mutual fund voting practices in the United States, and whether there is evidence that they are living up to their obligations as fiduciaries to look out for the best interests of their shareholders. OTHER KEY STUDY FINDINGS Major gap on corporate governance proxy support. SRI funds averaged a 95.2 percent withhold voting record from directors at the four most targeted companies of the 2004 proxy season. Conventional funds withheld votes only 51.8 percent of the time. SRI funds are far more likely to support the governance issues of separation of CEO and chairman (83.3 percent support versus 12.7 percent for conventional funds), and limiting consulting by auditors (66.7 percent support versus 0 percent by conventional funds). They also supported poison pill, golden parachute and expensing options proposals by an average 25 percent lead over conventional funds. SRI v. conventional fund support for social proxy issues. The overall support level of SRI funds for social/environmental shareholder resolutions was 84.6 percent compared to conventional funds support of 15.1 percent (and 18 percent abstaining). Half of the conventional fund families — and 20 individual funds in that category— revealed no votes against management on social proposals. However, one conventional fund family, Schwab, stood out by supporting half of all social resolutions studied, voting in favor of these proposals 56.3 percent of the time. For conventional funds supporting social or environmental issues, PIMCO, Schwab and Vanguard stand out. PIMCO and Schwab had much higher levels of voting against management on these resolutions — meaning they supported the proposals put forward by investors, while Vanguard tended to abstain on almost all social votes for all funds in that family studied. Social and environmental proposals comprise about one-third of all resolutions filed by shareholders each year. Merrill Lynch, Citigroup Asset Management, and Dreyfus Corp. were the only other complexes that supported any social proposals. Common ground: declassifying boards/annual elections. Only one issue in the study—declassifying the board (holding annual elections)—resulted in an equal number of conventional and SRI funds voting against management. Both groups of funds displayed significant support for these resolutions—with SRI funds averaging 85.7 percent and conventional funds averaging 86.3 percent against management. Conventional fund corporate governance leaders . Conventional funds with the strongest records of supporting governance proposals (each averaging more than 56 percent support) include Citigroup Asset Management, Dreyfus Corp., Franklin Templeton, Merrill Lynch, and Schwab. Transparency/proxy guidelines disclosure issues . SRI funds as a group tend to have more in-depth proxy guidelines. Many SRI funds use their guidelines to educate their fund owners on critical issues up for a vote. Conventional funds do a consistently poor job of providing detailed discussions of their social or environmental voting stances in their guidelines. There were a few exceptions, with some funds’ guidelines detailing the circumstances that might trigger support for a social proposal. Tracey Rembert, study author and coordinator of the Social Investment Forum’s Advocacy and Public Policy Program, said: “Clearly, our results show that this disclosure rule is very important in prodding fund companies to uphold their fiduciary allegiance to fund investors. Already, we’ve seen improvements in policies and voting guidelines that benefit individual fund owners looking for this information. With a new spotlight on fund voting, we should see improvements in the years to come of funds standing up to management more often when it’s in the interest of their fundholders.” The full Social Investment Forum Foundation study is available online at http://www.socialinvest.org/areas/research/votingpractices/default.htm . STUDY METHODOLOGY The Social Investment Forum Foundation study looked at six corporate governance issues (expensing of stock options, separation of CEO and chair positions, limiting consulting by auditors, shareholder approval of poison pills, shareholder approval of golden parachutes, and declassifying the board/holding annual elections), six social or environmental issues (reporting on climate change/climate risk, addressing the HIV/AIDS/Malaria/TB pandemics, supporting labor/vendor standards, sexual orientation nondiscrimination policies, human rights, and sustainability reporting), and four major “vote no” campaigns targeting specific directors where proxies were withheld in substantial numbers (Walt Disney, Federated Department Stores, Kohl’s, and MBNA). The report examined domestic large cap equity and hybrid funds at the top 10 mutual fund companies (in terms of total equity and non-equity net assets) for both conventional and SRI funds. Mutual funds also were examined in terms of: accessibility of fund voting records and guidelines; quality of proxy voting guidelines; transparency on proxy issues from fund staff and web and written materials; conflict of interest policies; disregard for social resolutions as an entire class; ability to cast votes against directors (withholds); and customer service and support related to proxy information requests. ABOUT THE FORUM FOUNDATION The Social Investment Forum Foundation is a national nonprofit organization providing research and education on socially responsible investing. The Forum Foundation provides cutting-edge research on the trends, practice, performance, and impact of social investing. CONTACT: Patrick Mitchell, (703) 276-3266 or pmitchell@hastingsgroup.com. EDITOR’S NOTE: The full study, a related news release and streaming audio from the news event will be available on the Web today (April 12, 2005) at http://www.socialinvest.org. The study and release will be available by 10:30 a.m. ET on April 12th and the streaming audio by 4 p.m. ET. Audio Recording of press conference  HOME  SRI GUIDE  NEWS  INVESTORS  RESEARCH  MEMBERS  JOIN Social Investment Forum1612 K Street NW, Suite 650Washington, DC 20006ph (202)872-5319, fax (202)822-8471Contact Us For more information on SRI and personal finance: Co-op America Site developed and maintained by Co-op America.©1996-2002 Social Investment Forum & Co-op America. All rights reserved.

Organizational Stakeholders : 

Organizational Stakeholders Any group within or outside the organization that has a stake in the organization’s performance

Social Responsibility : 

Social Responsibility Organization’s obligation to make choices and take actions that will contribute to the welfare and interests of society and organization Being a good corporate citizen

Total Corporate Responsibility : 

Total Corporate Responsibility Economic Responsibility Legal Responsibility EthicalResponsibility Discretionary Responsibility Ethical Dilemma: Should We Go Beyond the Law?

Total Corporate Responsibility : 

Total Corporate Responsibility Economic Responsibility Legal Responsibility EthicalResponsibility Discretionary Responsibility Ethical Dilemma: Should We Go Beyond the Law?

The Ethical Organization : 

The Ethical Organization Ethical individuals honest, have integrity, strive for a high level of moral development Ethical leadership provides the necessary actions, committed to ethical values and helps others to embody those values Organizational structure embodies a code of ethics, and methods to implement ethical behavior

Slide 55: 

MGMT. 242

Group : 

Group Page 183 – Shall We Go Beyond the Law Page 185 -- Q. 3 Massengill’s Department Store Sl. 129

Ethics and the New Workplace : 

Ethics and the New Workplace Telecommuting, virtual work, and flexible hours … Success of new programs depends on mutual trust IT provides opportunities for monitoring Companies that make an unwavering commitment to maintaining high standards of ethics and social responsibility will lead the way toward a brighter future for both business and society

Slide 58: 

MGMT. 242

Managing Small Business Start-Ups : 

Managing Small Business Start-Ups Chapter 6

Starting a New Business : 

Starting a New Business Since 1970, the number of businesses in the U.S. economy has been growing faster than the labor force Manager’s Challenge: Intermedics

Why Small Business ? : 

Why Small Business ? Economic changes Globalization Advancing technology Increased competition New market niches

Entrepreneurship : 

Entrepreneurship Process of starting a business venture Organizing the necessary resources Assumes associated risks and rewards

Entrepreneurship and the Environment : 

Entrepreneurship and the Environment Entrepreneurship and small business are vital, dynamic increasing important parts of U.S. economy

Why Small Business ? : 

Why Small Business ? Economic changes Globalization Advancing technology Increased competition New market niches

Definition of Small Business : 

Definition of Small Business Independently owned and operated Not dominant in its field of operation Number of employees, depending on the industry Annual sales consideration, depending on the industry

Sources -- Entrepreneurial Motivation : 

Sources -- Entrepreneurial Motivation To Control Future To Fulfill a Dream To Be My Own Boss Downsized/Laid Off Reasons for Starting a Business Source: “The Rewards,” Inc. State of Small Business, 2001, May 29 2001, 50-51; and Leslie Brokaw, “How To Start an Inc. 500 Company,” Inc. 500, 1994, 51-65. Joined Family Business 41% 36% 27% 25% 5%

Sources -- Entrepreneurial Motivation : 

Sources -- Entrepreneurial Motivation To Control Future To Fulfill a Dream To Be My Own Boss Downsized/Laid Off Reasons for Starting a Business Source: “The Rewards,” Inc. State of Small Business, 2001, May 29 2001, 50-51; and Leslie Brokaw, “How To Start an Inc. 500 Company,” Inc. 500, 1994, 51-65. Joined Family Business 41% 36% 27% 25% 5%

Impact of Entrepreneurial Companies : 

Impact of Entrepreneurial Companies - Impact Over 5.7 million U.S. business … have fewer than 100 employees … but, generate 40% of the nation’s output There are approximately 600,000 new businesses each year Only 16,000 businesses employ more than 500 people - Job Creation small businesses created 2 million jobs between October 2000 – March 2004 - Innovation New and smaller firms have been responsible for 55% of the innovations in 362 different industries and 95% of all radical innovations Fast-growing businesses produce twice as many innovations per employee

Becoming A Business Owner : 

Becoming A Business Owner Sole Proprietorship > unincorporated business owned by an individual for profit Partnership > unincorporated business owned by two or more people Corporation > entity created by the state and existing apart from its owners. 3 Basic Legal Forms

Becoming A Business Owner : 

Becoming A Business Owner Sole Proprietorship > unincorporated business owned by an individual for profit Partnership > unincorporated business owned by two or more people Corporation > entity created by the state and existing apart from its owners. 3 Basic Legal Forms

Starting an Entrepreneurial Firm-- 5 Elements -- : 

Viable business idea Business plan Legal form of business Financial resources Tactics to own a business Starting an Entrepreneurial Firm-- 5 Elements --

Launching High-Tech or Business Start-Ups : 

Launching High-Tech or Business Start-Ups Have a viable idea Write a business plan Acquire initial financing Building and Testing the Product or Service Launch company Be prepared to obtain additional financing Develop partnerships Consider going public

Five Stages of Growth For an Entrepreneurial Company : 

Five Stages of Growth For an Entrepreneurial Company

Managing a Growing Business : 

Managing a Growing Business Organizing 1st two stages typically very informal At 3rd stage, success, functional managers are hired Rules and regulations, procedural manuals Latter stages, delegation Outsourcing – organizing approach

Managing a Growing Business : 

Managing a Growing Business Leading Early stages – leader’s vision By success stage, must learn to motivate employees or bring in managers who can Need for active communication Leadership is important because many small firms have a hard time hiring qualified employees

Managing a Growing Business : 

Managing a Growing Business Controlling Financial control – important in each stage Initial stages – exercised by simple accounting records and by personal supervision By 3rd stage, operational budgets are in place; structured control systems Control Techniques become more sophisticated as the firm matures

Impact of Entrepreneurial Companies : 

Impact of Entrepreneurial Companies - Impact Over 5.7 million U.S. businesses … have fewer than 100 employees … but, generate 40% of the nation’s output There are approximately 600,000 new businesses each year

Impact of Entrepreneurial Companies : 

Impact of Entrepreneurial Companies - Job Creation small businesses created 2 million jobs between October 2000 – March 2004 - Innovation New and smaller firms have been responsible for 55% of the innovations in 362 different industries and 95% of all radical innovations Fast-growing businesses produce twice as many innovations per employee

5 - Five Stages of Growth For an Entrepreneurial Company : 

Existence Survival Success Takeoff Maturity 5 - Five Stages of Growth For an Entrepreneurial Company

Managing a Growing Business : 

Managing a Growing Business Leading Early stages – leader’s vision By success stage, must learn to motivate employees or bring in managers who can Need for active communication Leadership is important because many small firms have a hard time hiring qualified employees

Managing a Growing Business : 

Managing a Growing Business Controlling Financial control – important in each stage Initial stages – exercised by simple accounting records and by personal supervision By 3rd stage, operational budgets are in place; structured control systems Control Techniques become more sophisticated as the firm matures

Slide 82: 

MGMT. 242

Slide 83: 

MGMT. 242

Managerial Planning and Goal Setting : 

Managerial Planning and Goal Setting 7

Goals and Plans : 

Goals and Plans Goal - A desired future state Plan - A blueprint specifying the actions necessary for attaining goals Planning – the organization’s goals and the means for achieving them

Slide 86: 

Mission Statement Strategic Goals/Plans Senior Management (Organization as a whole) Tactical Goals/Plans Middle Management (Major divisions, functions) Operational Goals/Plans Lower Management (Departments, individuals) Internal Message Legitimacy, motivation, guides, rationale, standards External Message Legitimacy for investors, customers, suppliers, community Levels of Goals/Plans & Their Importance

Benefits for the Organization : 

Benefits for the Organization Legitimacy What the organization stands for - reason for being Symbolizes legitimacy Employees identify with overall purpose Source of Motivation and Commitment Employees’ identification with the organization Motivate by reducing uncertainty Guides to Action Provide a sense of direction; focus attention on specific targets Direct efforts toward important outcomes Provided from Internal and External Messages Goals and Plans Send

Benefits for the Organization : 

Benefits for the Organization Rationale for Decisions what organization is trying to accomplish decisions to ensure that internal policies, roles, performance, structure, products, and expenditures will be made in accordance with desired outcomes Standard of Performance Serve as performance criteria Provide a standard of assessment Provided from Internal and External Messages Goals and Plans Send

Organizational Mission : 

Organizational Mission Mission - organization’s reason for existing Mission Statement Broadly states the basic business scope and operations that distinguishes it from similar types of organizations May include the market and customers Some may describe company values, product quality, attitudes toward employees

Bristol-Myers Squibb Mission Statement : 

Bristol-Myers Squibb Mission Statement Our company’s mission is to extend and enhance human life by providing the highest-quality pharmaceutical and related health care products.

Strategic Goals and Plans : 

Strategic Goals and Plans Strategic Goals Where the organization wants to be in the future Pertain to the organization as a whole Strategic Plans Action Steps used to attain strategic goals Blueprint that defines the organizational activities and resource allocations Tends to be long term

Goal Attainment : 

Goal Attainment Traditional organizational responsibility Strategic - top management Tactical – middle management Operational - 1st line management & workers S.T.0

Goal Attainment : 

Goal Attainment Traditional organizational responsibility Strategic - top management Tactical – middle management Operational - 1st line management & workers ST0

Hierarchy of Goals : 

Hierarchy of Goals Operational Goals Tactical Goals Strategic Goals Mission Traditional Responsibility Top Management Middle Management 1st-line Management & Workers Shrinking middle management Employee empowerment Employees Today

Hierarchy of Goals : 

Hierarchy of Goals Operational Goals Tactical Goals Strategic Goals Mission Traditional Responsibility Top Management Middle Management 1st-line Management & Workers Shrinking middle management Employee empowerment Employees Today

Characteristics of Effective Goal Setting : 

Characteristics of Effective Goal Setting Specific and measurable Challenging but realistic Defined time period Linked to rewards

Planning In The New Workplace : 

Planning In The New Workplace Have a strong mission statement and vision Set stretch goals for excellence Establish a culture that encourages learning Embrace event-driven planning Utilize temporary task forces Planning still starts and stops at the top Planning comes alive when employees are involved in setting goals and determining the means to reach them

Model of the MBO Process : 

Model of the MBO Process Step 1: Set Goals Step 2: Develop Action Plans Step 3: Review Progress

Model of the MBO Process : 

Model of the MBO Process Step 1: Set Goals Step 2: Develop Action Plans Step 3: Review Progress

Slide 100: 

Mission Statement Strategic Goals/Plans Senior Management (Organization as a whole) Tactical Goals/Plans Middle Management (Major divisions, functions) Operational Goals/Plans Lower Management (Departments, individuals) Internal Message Legitimacy, motivation, guides, rationale, standards External Message Legitimacy for investors, customers, suppliers, community Levels of Goals/Plans & Their Importance

Characteristics of Classical, Political, and Administrative Decision Making Models : 

Characteristics of Classical, Political, and Administrative Decision Making Models Classical Model Administrative Model Political Model Clear-cut problem and goals Vague problem and goals Pluralistic; conflicting goals Condition of certainty Condition of uncertainty Condition of uncertainty/ambiguity Full information about Limited information about Inconsistent viewpoints; ambiguous alternatives and their outcomes Alternatives and their outcomes information Rational choice by individual Satisficing choice for resolving Bargaining and discussion among for maximizing outcomes problem using intuition coalition members

Planning for High Performance : 

Planning for High Performance Central Planning = Traditional Department Group of planning specialists who develop plans for the organization as a whole and its major divisions and departments and typically report directly to the president or CEO Decentralized Planning = High-Performance Managers work with planning experts to develop their own goals and plans

Planning In The New Workplace : 

Planning In The New Workplace Have a strong mission statement and vision Set stretch goals for excellence Establish a culture that encourages learning Embrace event-driven planning Utilize temporary task forces Planning still starts and stops at the top Planning comes alive when employees are involved in setting goals and determining the means to reach them

Slide 104: 

MGMT. 242

Strategy Formulation and Implementation : 

Strategy Formulation and Implementation 8

Strategic Management : 

Strategic Management Set of decisions and actions used to implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals Responsibility = top managers & chief executive

Strategy Formulation vs. Implementation : 

Strategy Formulation vs. Implementation Strategy Formulation: stage of strategic management that involves planning and decision making that lead to the establishment of the organization’s goals and of a specific strategic plan Strategy Implementation: stage of strategic management that involves the use of managerial and organizational tools to direct resources toward achieving strategic outcomes Experiential Exercise: Developing Strategy for a Small Business

Three Levels of Strategy in Organizations : 

Three Levels of Strategy in Organizations

Global Strategy : 

Global Strategy Globalization: product design and advertising strategies are standardized around the world Multi-domestic: adapt product and promotion for each country Transnational: combine global coordination with flexibility to meet specific needs in various countries

Grand Strategy: Retrenchment : 

Grand Strategy: Retrenchment Retrenchment = the organization goes through a period of forced decline by either shrinking current business units or selling off or liquidating entire businesses Liquidation = selling off a business nit for the cash value of the assets, thus terminating its existence Divestiture = involves selling off of businesses that no longer seem central to the corporation

Purpose of Strategy : 

Purpose of Strategy The plan of action that prescribes resource allocation and other activities for dealing with the environment, achieving a competitive advantage, that help the organization attain its goals Strategies focus on: Core competencies Developing synergy Creating value for customers

Three Levels of Strategy in Organizations : 

Three Levels of Strategy in Organizations

Five Forces Affecting Industry Competition : 

Five Forces Affecting Industry Competition Source: Based on Michael E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors (New York: Free Press, 1980). Internet reduces barriers to entry Internet expands market size, but creates new substitution threats Internet tends to increase the bargaining power of suppliers Internet shifts greater power to end consumers Internet blurs differences among competitors in an industry Bargaining Power of Buyers Bargaining Power of Suppliers Threat of Substitute Products Potential New Entrants Rivalry among Competitors

Competitive Edge ThroughCompetitive Strategies : 

Competitive Edge ThroughCompetitive Strategies Differentiation = attempt to distinguish products or services from that of competitors Cost leadership = aggressively seeks efficient facilities, pursues cost reductions, and uses tight cost controls to produce products more efficiently than competitors Focus = concentrates on a specific regional market or buyer group

Tools for Putting Strategy into Action : 

Tools for Putting Strategy into Action Environment Organization Strategy Performance Leadership ? Persuasion ? Motivation ? Culture/values Structural Design ? Organization Chart ? Teams ? Centralization Decentralization, Facilities, task design Human Resources ? Recruitment/selection ? Transfers/promotions ? Training ? Layoffs/recalls Source: Adapted from Jay R. Galbraith and Robert K. Kazanjian, strategy Implementation: Structure, Systems and Process, 2d ed. (St. Paul, Minn.: West, 1986), 115, Used with permission. Information & Control Systems ? Pay, reward system ? Budget allocations ? Information systems ? Rules/procedures

Managerial Decision Making : 

Managerial Decision Making 9

Certainty, Risk, Uncertainty, Ambiguity : 

Certainty, Risk, Uncertainty, Ambiguity Certainty Risk Uncertainty Ambiguity

Strategy Formulation vs. Implementation : 

Strategy Formulation vs. Implementation Experiential Exercise: Developing Strategy for a Small Business

Strategy Formulation vs. Implementation : 

Strategy Formulation vs. Implementation Strategy Formulation: stage of strategic management that involves planning and decision making that lead to the establishment of the organization’s goals and of a specific strategic plan Strategy Implementation: stage of strategic management that involves the use of managerial and organizational tools to direct resources toward achieving strategic outcomes Experiential Exercise: Developing Strategy for a Small Business

Strategic Management Process : 

Strategic Management Process Overview Implement Strategy via Changes in: Leadership culture, Structure, HR, Information & control systems SWOT Formulate Strategy – Corporate, Business, Functional Define new Mission Goals, Grand Strategy Identify Strategic Factors – Strengths, Weaknesses Identify Strategic Factors – Opportunities, Threats Scan Internal Environment – Core Competence, Synergy, Value Creation Evaluate Current Mission, Goals, Strategies Scan External Environment – National, Global

Strategic Management Process : 

Strategic Management Process Overview Implement Strategy via Changes in: Leadership culture, Structure, HR, Information & control systems SWOT Formulate Strategy – Corporate, Business, Functional Define new Mission Goals, Grand Strategy Identify Strategic Factors – Strengths, Weaknesses Identify Strategic Factors – Opportunities, Threats Scan Internal Environment – Core Competence, Synergy, Value Creation Evaluate Current Mission, Goals, Strategies Scan External Environment – National, Global

Certainty, Risk, Uncertainty, Ambiguity : 

Certainty, Risk, Uncertainty, Ambiguity Certainty all the information the decision maker needs is fully available Risk decision has clear-cut goals good information is available future outcomes associated with each alternative are subject to chance

Certainty, Risk, Uncertainty, Ambiguity : 

Certainty, Risk, Uncertainty, Ambiguity Uncertainty managers know which goals they wish to achieve information about alternatives and future events is incomplete managers may have to come up with creative approaches to alternatives Ambiguity by far the most difficult decision situation goals to be achieved or the problem to be solved is unclear alternatives are difficult to define information about outcomes is unavailable

Tools for Putting Strategy into Action : 

Tools for Putting Strategy into Action Environment Organization Strategy Performance Leadership ? Persuasion ? Motivation ? Culture/values Structural Design ? Organization Chart ? Teams ? Centralization Decentralization, Facilities, task design Human Resources ? Recruitment/selection ? Transfers/promotions ? Training ? Layoffs/recalls Source: Adapted from Jay R. Galbraith and Robert K. Kazanjian, strategy Implementation: Structure, Systems and Process, 2d ed. (St. Paul, Minn.: West, 1986), 115, Used with permission. Information and Control Systems ? Pay, reward system ? Budget allocations ? Information systems ? Rules/procedures

Conditions that Affect the Possibility of Decision Failure : 

Conditions that Affect the Possibility of Decision Failure

Conditions that Affect the Possibility of Decision Failure : 

Conditions that Affect the Possibility of Decision Failure

Six Steps in the ManagerialDecision-Making Process : 

Six Steps in the ManagerialDecision-Making Process Evaluation and Feedback Diagnosis and Analysis of Causes Recognition of Decision Requirement Development of Alternatives Selection of Desired Alternative Implementation of Chosen Alternative Decision-Making Process ? ? ? ? ? ? ?

Three Levels of Strategy in Organizations : 

Three Levels of Strategy in Organizations

Competitive Edge ThroughCompetitive Strategies : 

Competitive Edge ThroughCompetitive Strategies Differentiation: Cost leadership: Focus:

Competitive Edge ThroughCompetitive Strategies : 

Competitive Edge ThroughCompetitive Strategies Differentiation: distinguish products or services from that of competitors Cost leadership: efficient facilities, cost reductions, and tight cost controls to produce products more efficiently than competitors Focus: concentrates on a specific regional market or buyer group

Decision Styles : 

Decision Styles Differences among people with respect to how they perceive problems and make decisions Not all managers make decisions the same Directive style / Analytical style / Conceptual style / Behavioral style FOCUS: SUBSTANCE, NOT STYLE

Categories of Decisions : 

Categories of Decisions Programmed Decisions Nonprogrammed Decisions

Categories of Decisions : 

Categories of Decisions Programmed Decisions Situations occurred often enough to enable decision rules to be developed and applied in the future Made in response to recurring organizational problems Nonprogrammed Decisions – in response to unique, poorly defined and largely unstructured, and have important consequences to the organization Ethical Dilemma: The No-Show Consultant

Decision Making Model : 

Decision Making Model Depends on the manager’s personal preference Whether the decision is programmed or non-programmed Extent to which the decision is characterized by risk, uncertainty, or ambiguity

Slide 135: 

New Decision Approaches for Turbulent Times Learn, Don’t Punish Know When to Bail Practice the Five Whys Engage in Rigorous Debate Brainstorming New Decision Approaches for Turbulent Times

Designing Adaptive Organizations : 

Designing Adaptive Organizations 10

Authority : 

Authority Formal and legitimate right of a manager to make decisions and issue orders Allocate resources to achieve organizationally desired outcomes Authority is distinguished by three characteristics Authority is vested in organizational positions, not people Authority is accepted by subordinates Authority flows down the vertical hierarchy

Responsibility : 

Responsibility The duty to perform the task or activity an employee has been assigned Managers are assigned authority commensurate with responsibility Flip side of the authority coin

Accountability : 

Accountability Mechanism through which authority and responsibility are brought into alignment People are subject to reporting and justifying task outcomes to those above them in the chain of command Can be built into the organization structure

Delegation : 

Delegation Process managers use to transfer authority and responsibility Organizations encourage managers to delegate authority to lowest possible level Ethical Dilemma: A Matter of Delegation

Slide 141: 

Techniques for Delegation Give thorough instructions Maintain feedback Evaluate and reward performance Delegate the whole task Select the right person Delegation Ensure that authority equals responsibility

Line and Staff Authority : 

Line and Staff Authority Line Authority: individuals in management positions have the formal power to direct and control immediate subordinates Staff Authority: granted to staff specialists in their area of expertise

Span of Management/Span of Control : 

Span of Management/Span of Control Number of employees who report to a supervisor Traditional view = seven subordinates per manager Lean organizations today = 30+ subordinates Supervisor Involvement must be closely involved with subordinates, the span should be small need little involvement with subordinates, it can be large

DepartmentalizationThe basis on which individuals are grouped into departments : 

DepartmentalizationThe basis on which individuals are grouped into departments Vertical functional approach. People are grouped together in departments by common skills. Divisional approach. Grouped together based on a common product, program, or geographical region. Horizontal matrix approach. Functional and divisional chains of command. Some employees report to two bosses Team-based approach. Created to accomplish specific tasks

Slide 145: 

Structure Follows Strategy Experiential Exercixe: Organic versus Mechanistic Organization Structure

Factors Shaping Structure : 

Factors Shaping Structure Structure Follows Strategy Reflects the Environment Fits the Technology Service Technology Digital Technology Experiential Exercixe: Organic versus Mechanistic Organization Structure

Slide 147: 

11

Turbulent Times The Changing Work Place : 

Turbulent Times The Changing Work Place Today’s organizations need to continuously adapt to new situations if they are to survive and prosper One of the most dramatic elements is the shift to a technology- driven workplace Ideas, information, and relationships are becoming critically important Manager’s Challenge: Cowley manufacturing plant

Managing Change and Innovation : 

Managing Change and Innovation How organizations respond to the environment through internal change and development Basic forces - Organizational Change Managers - two change requirements Four major types of change Organizations can be designed to facilitate each

Organizational Change : 

Organizational Change The adoption of a new idea of behavior by an organization New trends require profound changes in the organization E-business Supply chain integration Knowledge management

Organizational Change : 

Organizational Change Today’s successful organizations simultaneously embrace two types of planned change Incremental change - efforts to gradually improve basic operational and work processes in different parts of the company Transformational change - redesigning and renewing the entire organization

Model of Change - Sequence of Events : 

Model of Change - Sequence of Events EnvironmentalForces InternalForces Need for change Initiate change Implement change Monitor global competition, and other factors Consider plans, goals, company problems, and needs Evaluate problems and opportunities, define needed changes in technology products, structure, and culture Facilitate search, creativity, idea champions, venture teams, skunk works and idea incubators Use force field analysis, tactics for overcoming resistance

Need for Change : 

Need for Change Performance gap - disparity between existing and desired performance levels. Current procedures are not up to standard New idea or technology could improve current performance Based on external or internal forces

Organizational Change : 

Organizational Change Technology: General rule = change is bottom up New product: Horizontal linkage model emphasizes shared development of innovations among several departments Time-based competition is based on the ability to deliver products and services faster than competitors Structure: Successful change = through a top-down approach Culture/people: Training is the most frequently used tool for changing the organization’s mind-set

Types of Organizational Change : 

Types of Organizational Change Culture/People Strategy Structure Technology Products SOURCE: Based on Harold J. Leavitt, “Applied Organizational Change in Industry: Structural, Technical, and Human Approaches,” In New Perspectives in Organization Research, ed.W.W. Cooper, H.J. Leavitt, and Shelly II (New York: Wiley, 1964), 55-74.

Horizontal Linkage Model : 

Horizontal Linkage Model For New Product Innovation Research Department Marketing Department Manufacturing Department New Technology Customers Market Conditions Organization

Idea Champion : 

Idea Champion A person who sees the need for and Champions productive change within the organization Change does not occur by itself

Four Roles in Organizational Change : 

Four Roles in Organizational Change Inventor Develops and understands technical aspects of ideas Does not know how to win support for the idea or make a business of it Sponsor High-level manager who removes organizational barriers Approves and protects idea within organization Critic Provides reality test Looks for short- comings Defines hard-nosed criteria that idea must pass Sources: Based on Harold L. Angle and Andrew H. Van de Ven, “Suggestions for Managing the Innovation Journey,” in Research in the Management of Innovation: The Minnesota Studies, ed. A. H. Van de Ven, H. L. Angle, and Marshall Scott Poole (Cambridge, Mass.: Ballinger/Harper & Row, 1989); and Jay R. Galgraith, “Designing the Innovating Organization,” Organizational Dynamics (winter 1982) 5-25. Champion Believes in idea Visualizes benefits Confronts organization realities of cost, benefits Obtains financial & political support Overcomes obstacles Championing an idea successfully requires roles in organizations

Tactics for Overcoming Resistance to Change : 

Tactics for Overcoming Resistance to Change Communication Education Participation

Resistance to Change : 

Resistance to Change Self-Interest: fear of personal loss is perhaps the biggest obstacle to organizational change Lack of Understanding and Trust: do not understand the intended purpose of a change or distrust the intentions Uncertainty: lack of information about future events Different Assessments and Goals: people who will be affected by innovation may assess the situation differently.

Organization Development : 

Organization Development Decline/revitalization Mergers/acquisitions Conflict management Problems OD Can Address Application of behavioral science techniques to improve an organization’s health and effectiveness through its ability to cope with environmental changes, improve internal relationships, and increase learning and problem-solving capabilities

OD Activities : 

OD Activities Survey feedback Team building Large group intervention

OD Approaches to Culture Change : 

OD Approaches to Culture Change Traditional Organizational Development Model Large-Group Intervention Model Change Process: Incremental Change Rapid transformation Focus for action: Information Source: Distribution: Time frame: Learning: Specific problem or group Organization Limited Gradual Individual, small group Entire system Organization & environment Widely shared Fast Whole organization SOURCE: Adapted from Barbara Benedict Bunker and Billie T. Alban, “Conclusion: What Makes Large Group Interventions Effective,” The Journal of Applied Behavioral Science 28, no 4 (December 1992), 579-591.

Slide 164: 

MGMT. 242

Slide 165: 

MGMT. 242

Management and the New Workplace : 

Management and the New Workplace Forces on organizations .. Impact of technology New Management Competencies / new workplace Dispersed leadership Empowering others Collaborative relationships Team-building skills Learning organization

Total Quality Management - TQM : 

Total Quality Management - TQM Organizationwide commitment to infusing quality into every activity through continuous improvement Quality circles Benchmarking ** ?Six Sigma ( extension of TQM) Reduced cycle time Continuous improvement ** Based on decentralized control philosophy

Slide 168: 

Total Quality Management (TQM) TQM focuses on managing the total organization to deliver quality to customers. The ideas of W. Edwards Deming, "father of the quality movement” were scoffed at in America but embraced in Japanese which became an industrial world power. Japanese management shifted from an inspection-oriented approach to quality control emphasizing employee involvement in the prevention of quality problems. The approach infuses quality values throughout every activity, with front-line workers intimately involved in the process. There are four significant elements: Employment involvement: TQM requires company-wide participation in quality control. Focus on the customer: TQM companies find out what the customer wants. Benchmarking is a process whereby companies find out how others do something better and imitate or improve it. Continuous improvement is the implementation of small, incremental improvements in all areas of the organization on an ongoing basis

Elements of a Learning Organization : 

Elements of a Learning Organization Learning Organization Open Information Empowered Employees Team-Based Structure Exhibit 2.7, p. 61 Keys: Collaboration / Communication / Self – Directed Teams

New Approach to Management : 

New Approach to Management Success accrues to those who learn to … Be leaders Initiate change Participate in & create organizations with: fewer managers less hierarchy that can change quickly

Management Perspectives Over Time : 

Management Perspectives Over Time 2010 1870 Exhibit 2.1, p.44

High-Performance Culture : 

High-Performance Culture Creating and maintaining a high-performance culture in today’s turbulent environment and changing workplace is not easy. Managers widely communicate their cultural values through their words and particularly their actions Value statements that are not reinforced by management behavior are meaningless or even harmful for employees and the organization Cultural leaders uphold their commitment to values during difficult times or crises.

Corporate Culture Adaptability : 

Corporate Culture Adaptability Adaptive Culture Unadaptive Culture Visible Behavior Expressed Values Managers pay close attention to all their constituencies, especially customers, and initiate change when needed to serve their legitimate interests, even if it entails taking some risks. Managers tend to behave somewhat insularly, politically, and bureaucratically. As a result, they do not change their strategies quickly to adjust to or take advantage of changes in their business environments. Managers care deeply about customers, stockholders, and employees. They strongly value people and processes that can create useful change (e.g., leadership initiatives up and down the management hierarchy). Managers care mainly about themselves, their immediate work group, or some product (or technology) associated with that work group. They value the orderly and risk-reducing management process much more highly than leadership initiatives. Source: John P. Kotter and Jmaes L. Heskett, Corporate Culture and Performance (New York, The Free Press, 1992), 51.

Cultural Leadership : 

Cultural Leadership Articulates a vision that employees can believe in Defines and communicates central values that employees believe in Values are tied to a clear and compelling mission, or core purpose Heeds the day-to-day activities that reinforce the cultural vision – work procedures and reward systems match and reinforce the values

Planning In The New Workplace : 

Planning In The New Workplace Have a strong mission statement and vision Set stretch goals for excellence Establish a culture that encourages learning Embrace event-driven planning Utilize temporary task forces Planning still starts and stops at the top Planning comes alive when employees are involved in setting goals and determining the means to reach them

Reengineering : 

Reengineering Radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed Process = organized group of related tasks and activities that work together to transform inputs into outputs and create value

Tactics for Overcoming Resistance to Change : 

Tactics for Overcoming Resistance to Change Communication Education Participation

Resistance to Change : 

Resistance to Change Self-Interest: fear of personal loss is perhaps the biggest obstacle to organizational change Lack of Understanding and Trust: do not understand the intended purpose of a change or distrust the intentions Uncertainty: lack of information about future events Different Assessments and Goals: people who will be affected by innovation may assess the situation differently.

Leader versus Manager Qualities : 

Leader versus Manager Qualities Manager Qualities Leader Qualities Source: Genevieve Capowski, “Anatomy of a Leader: Where Are the Leaders of Tomorrow?” Management Review, March 1994, 12 SOUL Visionary Passionate Creative Flexible Inspiring Innovative Courageous Imaginative Experimental Initiates change Personal power MIND Rational Consulting Persistent Problem solving Tough-minded Analytical Structured Deliberate Authoritative Stabilizing Position power

Leading Change : 

Leading Change Charismatic Leaders The ability to inspire Motivate people to do more than they would normally do Tend to be less predictable than transactional leaders Create an atmosphere of change May be obsessed by visionary ideas

Job Design for Motivation : 

Job Design for Motivation Job design = application of motivational theories to the structure of work for improving productivity and satisfaction Job simplification = job design whose purpose is to improve task efficiency by reducing the number of tasks a single person must do

Job Design for Motivation : 

Job Design for Motivation Job Rotation = job design that systematically moves employees from one job to another to provide them with variety and stimulation Job Enlargement = job design that combines a series of tasks into one new, broader job to give employees variety and challenge

Job Design for Motivation : 

Job Design for Motivation Job Enrichment = job design that incorporates achievement, recognition, and other high-level motivators into the work Work redesign = altering of jobs to increase both the quality of employee’s work experience and their productivity

Empowering People to Meet Higher Needs : 

Empowering People to Meet Higher Needs Information - Employees receive information about company performance Knowledge - Employees have knowledge and skills to contribute to company goals Power - Employees have the power to make substantive decisions Rewards - Employees are rewarded based on the company performance Four Empowering Elements

Feedback Control Model : 

Feedback Control Model If Inadequate If Adequate Adjust Standards Adjust Performance Feedback Establish Strategic Goals 1. Establish standards of performance. 2. Measure actual performance. 3. Compare performance to standards. 4. Take corrective action. 4. Do nothing or provide reinforcement.

Communication : 

Communication Chapter 17

The Manager as Communication Champion : 

The Manager as Communication Champion Source: Adapted from Henry Mintzberg, The Nature Of Managerial Work(New York:Harper & Row, 1973),72. External Information Internal Information Manager as Communication Champion Purpose-Directed ?Direct attention to vision, values, desired outcomes ?Influence employee behavior Strategic Conversations ?Open communication ?Listening ?Dialogue ?Feedback Methods ?Rich channels ?Upward, downward, & horizontal channels ?Nonverbal communication Personal networks

Work Team Effectiveness Model : 

Work Team Effectiveness Model

Formal Teams : 

Formal Teams Vertical - composed of a manager and subordinates, sometimes called functional or command teams. Horizontal - composed of employees from the same hierarchical level but from different areas of expertise. Special-Purpose - created outside the formal organization for special projects and disband once project is completed.

Slide 190: 

HR 240 / 240 SLIDES

Human Resource Management : 

Human Resource Management All managers are resource managers Employees are viewed as assets Matching process, integrating the organization’s goals with employees’ needs How a company manages its workforce may be single more important factor in sustained competitive success

Human Resource Management Goals : 

Human Resource Management Goals Company Strategy HRM Environment Legislation Trends in society International events Changing technology

Three Ways HR Is Changing : 

Three Ways HR Is Changing Development of global HR strategies IHRM Focus on building human capital The using of information technology 1 2 3

HR Issues in the New Workplace : 

HR Issues in the New Workplace Teams and Projects Temporary Employees Technology Work-Life Balance Downsizing

HR Issues in the New Workplace : 

HR Issues in the New Workplace HR issues present many challenges for organizations and HR managers as they work toward the three primary HR goals Attracting Developing Maintaining an effective workforce

Matching Model : 

Matching Model An employee selection approach in which the organization and the applicant attempt to match each other’s needs, interests, and values Attracting an Effective Workforce

Attracting an Effective Workforce : 

Attracting an Effective Workforce Choose Recruiting Sources Want ads Headhunters Internet HR Planning Retirements Growth Resignations Select the Candidate Application Interview Tests Welcome New Employee Employee Contributions Ability Education Creativity Commitment Expertise Company Inducements Pay and benefits Meaningful work Advancement Training Challenge Matching Model Match with Company Needs Strategic goals Current & future competencies Market changes Employee turnover Corporate culture Employee Needs Stage of career Personal values Promotion aspirations Outside interests Family concerns Match with

Human Resource Planning : 

Human Resource Planning Forecasting of human resource needs and the projected matching of individuals with expected vacancies ? = New technologies emerging ? = Volume of business likely next 5-10 years ? = Turnover rate, how much is avoidable, if any

Basic Building Blocks of HR Management : 

Basic Building Blocks of HR Management Job Analysis Job Description Job Specification

Selecting : 

Selecting Selection = process of determining the skills, abilities, and other attributes a person needs to perform a particular job Validity = relationship between an applicant’s score on a selection device and his or her future job performance

Interviewing An Applicant : 

Interviewing An Applicant Know what you want Prepare a road map Use open-ended questions Do not ask irrelevant questions Do not rush interview Do not rely on your memory

Inappropriate or Illegal Questions : 

Inappropriate or Illegal Questions Race-related questions Age Religion Gender National origin Marital/family status Employment Applications and Interviews

Testing and Assessment : 

Testing and Assessment Employment Test = written or computer-based test designed to measure a particular attribute such as intelligence or aptitude Assessment Center = technique for selecting individuals with high managerial potential based on their performances on a series of simulated managerial tasks

Developing an Effective Workforce : 

Developing an Effective Workforce Training and development = planned effort to facilitate employees’ learning of job-related skills and behaviors $100 billion/year On-the-job training = an experienced employee “adopts” a new employee to teach him or her how to perform job duties Cross training Mentoring Following selection, next goal of HRM is to develop employees

Performance Appraisal : 

Performance Appraisal Process of observing and evaluating an employee’s performance, recording the assessment, and providing feedback to the employee Steps Observing and assessing performance Recording the assessment Providing feedback to employee

Making Performance Appraisals A Positive Force : 

Making Performance Appraisals A Positive Force The accurate assessment of performance through the development and application of assessment systems such as a rating scale Training managers to effectively use the performance appraisal interview to provide feedback that reinforces good performance and motivate employee development

Assessing Performance Accurately : 

Assessing Performance Accurately 360° Feedback Process Performance Evaluation Errors Stereotyping Halo effect BARS – Behaviorally-anchored rating scale

Behaviorally Anchored Rating Scale : 

Behaviorally Anchored Rating Scale 1 2 3 4 5 Have no plan or schedule of work and no concept of realistic due dates Have a sound plan but neglect to keep trace of target dates or to report schedule slippages or other problems as they occur Usually satisfy time constraints, with time and cost overruns coming up infrequently Develop a comprehensive schedule, observe target dates, and update the status of operations relative to plans, making schedule modifications as quickly as necessary Make a list of due dates and revise them but are frequently surprised by unforeseen events Job: Production Line Supervisor - Work Dimension: Work Scheduling Sources: Based on J.P. Campbell, M.D. Dunnette, R.D. Arvey, and L.V. Hellervik, “The Development and Evaluation of behaviorally Based Rating Scales,”Journal of Applied Psychology 57 (1973), 25-22; and Francine Alexander, ‘performance Appraisals,” Small Business Reports (March 2989), 20-29.

Maintaining an Effective Workforce : 

Maintaining an Effective Workforce Compensation Wage and Salary Systems Compensation Equity Pay for Performance Benefits Termination Ethical Dilemma: A Conflict of Responsibilities

Challenges For Management : 

Challenges For Management CHALLENGES OF CULTURAL DIVERSITY Source: Taylor H. Cox and Stacy Blake,”Managing Cultural Diversity: Implications For Organizational Competitiveness,” Academy of Management Executive 5, no 3 (1991), 45-56

Glass Ceiling : 

Glass Ceiling An invisible barrier separates women and minorities from top management positions Fortune 500 Women Corporate Officers 2004 = 15.7% 2000 = 12.5% 1995 = 8.7% Only eight Fortune 500 companies have female CEOs Ethical Dilemma: A Man’s World

Diversity Initiatives : 

Diversity Initiatives Recruitment Examine employee demographics Examine composition of the labor pool in the area Examine composition of the customer base Career Advancement Eliminate the glass ceiling Accomplish mentoring relationships Accommodating Special Needs Child care Non-English speaking training materials and information packets can be provided Maternity or paternity leave Flexible work schedules Home-based employment Long-term-care insurance, special health or life benefits

Slide 213: 

Stages of Diversity Awareness Source: Based on M. Bennett, “A developmental Approach to Training for Intercultural Sensitivity,” International journal of Intercultural relations 10 (1986), 176-196. Highest Level of Awareness Lowest Level of Awareness Denial ?No awareness of cultural differences ?Parochial view of the world ?In extreme cases, may claim other cultures are subhuman Defense ?Perceives threat against one’s comfortable worldview ?Uses negative stereotyping ?Assumes own culture superior Minimizing Differences ?Focuses on similarities among all peoples ?Hides or trivializes cultural differences ?Accepts behavioral differences and underlying differences in values ?Recognizes validity of other ways of thinking and perceiving the world Acceptance Adaptation ?Able to empathize with those of other cultures ?Able to shift from one cultural perspective to another Integration ?Multicultural attitude-enables one to integrate differences and adapt both cognitively and behaviorally

Myers-Briggs Type Indicator (MBTI) : 

Myers-Briggs Type Indicator (MBTI) Personality test that measures a person’s preference for introversion vs. extroversion sensation vs. intuition thinking vs. feeling judging vs. perceiving Experiential Exercise: Personality Assessment (MBTI)