MOB_ch23~Management Development and Orga...

Slide 1: 

Management and Organisational Behaviour 7th Edition CHAPTER 23 Management Development and Organisational Effectiveness

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Every work organisation is concerned with being effective upon the attainment of its aims and objectives rests the success and ultimate survival of the organisation. The quality of management is central to organisation development and improved performance. There are, however, a multiplicity of variables which impinge upon the successful organisation. The manager needs to understand the importance of improving the overall performance and effectiveness of the organisation.

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But the purpose of management and development activities is not to gain high on review forms. It is to have some kind of beneficial impact on the organisation. And since management and organisation Development does not take place in a vacuum: and since it may take time for the beneficial impact to take effect, `proving‘ effectiveness becomes fraught with all kinds of of complications so long as we continue to position management development within some form of causal framework. Keith Patching Management and Organisation Development

Management development : 

Management development Improving the effectiveness of individual managers & also with the improvement in managerial performance as a whole It must be integrated with the development of the organisation & the associated improvements in organisational effectiveness

Competing models of management development : 

Competing models of management development There is nothing you can do – management is an inherited talent driven by personality traits & charisma It’s all down to experience & the needs of the moment – better performance through the pooling of minds & shared experiences Improve by taking a course Performance is the only criterion, & competence is of the essence – definition of generic performance standards & assessed via evidence & observation

The changing role of managers : 

The changing role of managers Leader Coach Facilitator Clarke

Different approaches to management development strategy : 

Different approaches to management development strategy Top down – all activities seen as a part of a grand plan driven from the top of the organisation Learning vanguard – sustainable competitive advantage comes from the organisation’s ability to learn & all activities should push people to the leading edge of learning

Different approaches to management development strategy (continued) : 

Different approaches to management development strategy (continued) Empowerment – empowering all managers to seek their own development Community – organisations are best served by people who share the same language & follow the same processes Financial – investment required in time and money Patching

An holistic approach : 

An holistic approach To be fully effective, management development requires an integrated approach related to the development of the organisation as a whole

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AN HOLISTIC APPROACH

An integrated model of managerial behaviour & development : 

An integrated model of managerial behaviour & development Past knowledge & experience The manager as an individual Any organisation Managerial activities Other variables Behaviour roles/styles Efficient & effective management Measurement

The manager as an individual : 

The manager as an individual Links with other individuals & groups Personality & people perception Values Attitudes Opinions Motivation Intelligence & abilities

Any organisation : 

Any organisation Task Technology Structure People Management

Managerial activities : 

Managerial activities Fundamental activities – clarify goals & objectives, plans, organises, motivates & develops, measures Substantive activities – communication, co-ordination, integration, responsibility, decision- making Related activities – e.g. personnel activities

Other variables : 

Other variables Demands Constraints Choices

Behavioural roles & styles : 

Behavioural roles & styles Interpersonal roles – figurehead, leader, liaison Informational roles – monitor, disseminator, spokesperson Decisional roles – entrepreneurial, disturbance handler, resource allocator, negotiator

Efficient & effective management : 

Efficient & effective management Efficiency – doing things right & relating them to inputs & what a manager does Effectiveness – doing the right things & relating them to outputs of the job & what the manager actually achieves

Measurement : 

Measurement Formal assessment Informal assessment Self assessment

Feedback & development : 

Feedback & development Intrinsic feedback – visual & kinaesthetic cues occurring in connection with a response Augmented feedback – may be concurrent or terminal, occurring with performance or after it

MANAGEMENT DEVELOPMENT PROCESS : 

MANAGEMENT DEVELOPMENT PROCESS

Cranfield School of Management Study : 

Cranfield School of Management Study Defines six qualities that it considers necessary for effective management: Managerial knowledge - both acquisition of and trans­lation into practice. Behavioural skills - principally, assertiveness, communi­cation skills, the ability to influence and develop others. Cognitive abilities - to recognise and hold complex perspectives and conflicting concepts in the mind, plus the ability to shift perspectives, remain open-minded and consider possibilities. Self-knowledge - the ability to select from a range of behavioural options in response to a particular need. Emotional resilience - self-control, self-discipline. the ability to cope with pressure and bounce back from adversity. Personal drive - the ability to motivate yourself and others.

An integrated approach to management development : 

An integrated approach to management development Lound suggests a three-step process: Developing targeted competencies as & when required, not as & when convenient Developing support mechanisms where each & every subsequent application of techniques learned will sustain best practice levels of performance Creating an environment where people can learn quickly & easily from others

Succession planning & career progression : 

Succession planning & career progression Management succession planning aims to ensure a sufficient supply of appropriately qualified & capable people are available to meet the future needs of the organisation Career progression should provide potential managers with training & experience to equip them to assume a level of responsibility compatible with their ability & practical guidance, encouragement, & support so that they realise their potential

Is succession planning relevant today? : 

Is succession planning relevant today? Old-fashioned loyalty is much rarer Suitable candidates may not wish to stay the course Senior managers have little time to coach potential successors The tenure of chief executives is getting shorter

Continuing professional development (CPD) : 

Continuing professional development (CPD) The process of planned, continuing development of individuals throughout their career A number of professional bodies have developed competence-based CPD schemes for their members Lifelong learning should be the concern of all employees in the organisation & the concept of CPD should not be seen to apply only to professionals or managers

Management education, training & development : 

Management education, training & development A research project by the Open University Business School & The Institute of Management concluded that: Much has changed for the better Management development was achieving its objectives & having a significant impact on organisations No apparent neglect in responsibilities for management development The rate of change should accelerate

The management charter initiative (MCI) roles : 

The management charter initiative (MCI) roles The MCI has two roles – To improve the provision of management development in the UK To develop management standards that set the benchmark of best practice and help managers perform better

The leadership & management model : 

The leadership & management model The model is based on the following key principles: Top managers being committed to ensuring that the organisation is successful via effective leadership & management The organisation knows what effective leadership & management is & how it can be achieved The organisation takes action to improve leadership & management The approach to effective leadership & management helps the organisation to succeed

The leadership & management model – commitment indicators : 

The leadership & management model – commitment indicators Top managers direct the organisation’s approach to effective leadership & management Top managers are role models for leadership & management development

The leadership & management model – planning indicators : 

The leadership & management model – planning indicators Leadership & management requirements are defined & understood Leadership & management development is planned

The leadership & management model – action indicators : 

The leadership & management model – action indicators Leader & manager section is effective Effective leadership & management is reviewed & encouraged Leadership & managers continuously learn & develop

The leadership & management model – evaluation indicators : 

The leadership & management model – evaluation indicators The approach to effective leadership & management improves the organisation’s performance The approach to effective leadership & management is improved

The Peters & Waterman study : 

The Peters & Waterman study The following attributes of excellence which account for success were identified in a study of 62 American successful companies: A bias for action Being close to the customer Autonomy & entrepreneurship Productivity through people Hands on, value driven Staying close to what you know Simple structural forms and few top level staff Simultaneous loose-tight properties

The McKinsey 7-S framework : 

The McKinsey 7-S framework The framework provides a useful basis for organisational analysis: Shared values Structure Systems Style Staff Skills Strategy

Heller’s study of European excellence : 

Heller’s study of European excellence Heller identified 10 key strategies with which Europe’s revolutionary leaders have set off in search of their own brand of excellence: Developing leadership Driving radical change Reshaping culture Dividing to rule Exploiting the organisation

Heller’s study of European excellence : 

Heller’s study of European excellence Keeping the competitive edge Achieving constant renewal Managing the motivators Making team working work Achieving total management quality

Goldsmith & Clutterbuck study : 

Goldsmith & Clutterbuck study An examination of top companies & how they have excelled in the turbulent business environment of the 90s Key questions that need to be asked: Control vs autonomy Length of strategy Evolutionary vs revolutionary change Pride vs humility Focus vs breadth of vision Values vs rules Customer care vs customer count Challenging vs nurturing people Leaders vs managers Gentle vs succession

Basic features of a learning organisation : 

Basic features of a learning organisation Systems thinking Personal mastery Mental models Shared vision Team learning

Characteristics of a learning organisation : 

Characteristics of a learning organisation It encourages people at all levels of the organisation to learn regularly & rigorously from their work It has systems for capturing & learning information and moving it where it is needed It values its learning It is able to transform itself continuously

Total quality management : 

Total quality management An approach to quality within an organisation which is committed to total customer satisfaction through a continuous process of improvement, & the contribution & involvement of people Deming emphasised the importance of visionary leadership & the responsibility of top management for initiating change

Total Quality Management is a Japanese – inspired concept : 

Total Quality Management is a Japanese – inspired concept Kaizen Improvement or incremental change Concept based on continual evolutionary change Belief that individual workers know more about their own jobs than anyone else Cane suggests that the traditional Kaizen approach embeds it in a hierarchical structure

Kaizen approach : 

Kaizen approach Analyses every part of a process to the smallest detail Sees how every part of the process can be improved Looks at how employees’ actions, equipment, & materials can be improved Looks at ways of saving time & reducing waste

Key elements of TQM : 

Key elements of TQM A total process The customer is king Emphasis on rational information collection & analysis Greater involvement of people Teamwork Requirement for creative thinking Pentecost

Slide 50: 

TOTAL QUALITY MANAGEMENT ORGANIZATION AND CULTURE

Quality of working life (QWL) culture : 

Quality of working life (QWL) culture Aim of culture is to create a fear-free organisation where employee involvement is pursued vigorously It generates a high degree of reciprocal commitment between the needs & development of the individual & goals & development of the organisation

Business process re-engineering (BPR) : 

Business process re-engineering (BPR) The fundamental rethinking & radical re-design of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service & speed

Business process re-engineering (BPR) approach : 

Business process re-engineering (BPR) approach Completely fresh start or Blank sheet of paper to restructure the organisation It starts with how one would like the organisation to be & works backward in an effort to achieve real gains in organisational performance & delivery of products or services

The European Foundation For Quality Management (EFQM) Excellence model : 

The European Foundation For Quality Management (EFQM) Excellence model Known in the UK as the business excellence model The EFQM excellence model recognises that processes are the means by which an organisation harnesses the release of its people to produce results performance Moreover improvements in the performance can only be achieved by improving the processes by involving people Oakland

The European Foundation For Quality Management (EFQM) Excellence model : 

The European Foundation For Quality Management (EFQM) Excellence model Figure 23.7 © 1999 EFQM. The Model is a registered trademark of the EFQM.

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The (Excellence) Model is based on the principle that the fundamentals of running a successful organisation in the public, private or voluntary sector are the same - no matter what type, or size, of organisation they are applied to. The Model distils these principles into a framework of assessment and analytical criteria which can be applied to a whole organization, a department, division, or operational unit. Joe Goasdoue, Chief Executive of the British Quality Foundation Nine criteria of the Model Each of the nine criteria featured in the 'Model' are described by the British Quality Foundation as follows.

Nine criteria of the Model : 

Nine criteria of the Model 1 Leadership. How leaders develop and facilitate the achievement of the mission and vision, develop values for long-term Success and implement these via appropriate actions and behaviors, and are personally involved in ensuring that the organization's management system is developed and implemented. 2 People. How the organization manages, develops and releases the knowledge and full potential of its people at an individual, team-based and organization-wide level, and plans these activities in order to support its policy and strategy and the effective operation of its processes. 3 Policy and strategy. How the organization implements its mission and vision via a clear stakeholder-focused strategy, supported by relevant policies, plans, objectives, targets and processes. 4 Partnerships and resources. How the organization plans and manages its external partnerships and internal resources in order to support its policy and strategy and the effective operation of its processes. 5 Processes. How the organization designs, manages and improves its processes in order to support its policy and strategy and fully satisfy, and generate increasing value for, its customers and other stakeholders. 6 People results. What the organization is achieving in relation to its people. 7 Customer results. What the organization is achieving in relation to its external customers. 8 Society results. What the organization is achieving in relation to local, national and international society as appropriate. 9 Key performance results. What the organization is achieving in relation to its planned performance.

Use of the Excellence Model : 

Use of the Excellence Model The British Quality Foundation recommends the following Methodology for using the EFQM Excellence Model: develop commitment to self-assessment; plan self-assessment; establish teams to perform self-assessment and educate; communicate the self-assessment plans; conduct self-assessment; establish action plan; and implement action plan. In the context of this text, it is interesting to note the findings of the 'X Factor' report on the Model. What is crystal clear is that the management of people including HR strategy, competencies, training, conditions and benefits and recognition and reward, is the fulcrum of achieving excellence in business and results.

ASSESSING ORGANISATIONAL PERFORMANCE : 

ASSESSING ORGANISATIONAL PERFORMANCE

ASSESSING ORGAN ISATIONAL PERFORMANCE : 

ASSESSING ORGAN ISATIONAL PERFORMANCE Steele suggests nine questions to help managers assess the performance of their companies. 1 What is the attitude to change? 2 What is the degree of trust in the management's view of the workforce, is there a them and us mentality? 3 Really a manifestation of Question 2 - how much management information, especially financial, is communicated? 4 How visible and accessible is management, especially top management? 5 What is the atmosphere like in the organisation? Focusing on more specific areas to help identify the quality of an organisation's atmosphere: (a) What do people believe about the organisation? (b) How much control exists? (c) Is there a fear of failure? (d) Do people feel free to talk back? (e) Is there a fun atmosphere in the organisation? 6 How frequently are people rewarded and recognised? 7 What is the posture and prowess of the first point of customer contact? 8 Is customer service actively measured and the results communicated widely? 9 Do people have an appropriate purpose?

Managing the white space : 

Managing the white space Based on the concept of business process re-engineering, Rummler and Brache propose a framework for the improvement of organisational performance. They contrast the tra­ditional, functional view of the organisation as represented by the organisational chart with a more descriptive and useful systems approach; and put forward a methodology based on three levels of performance and the management of the white spaces between the boxes on the organisation chart. The organisational level - the basic 'skeleton' of the major functions which com­prise the organisation and its relationship with its market. Variables affecting performance at this level include strategies, corporate goals and measures, structure and deployment of resources. The process level - looking beyond the functional boundaries which make up the organisation chart, and examining the workflow and how work actually gets done. To manage performance variables at this level it is necessary to ensure processes are installed which satisfy customer needs. The job/perforrner level - involving performance variables such as recruitment, promotion, job responsibilities and standards, feedback, rewards and training. Rummler and Brache suggest that overall performance of the organisation and how well it meets the expectations of its customers are the result of goals, structures and management at all three levels. The three levels represent an anatomy of performance and Rumrnler and Brache draw attention to the importance of measuring performance and designing a performance management system. If performance isn't being measured, it isn't being managed.

Organization audit : 

Organization audit A programme of organisation audit (or management audit) involves a review of the operations of the organisation as a whole and an examination of the full range of management activities, including the effective use of human resources. identification of problems which are encountered in achieving organisational goals disparities between strategy formulation and policy decisions, actions necessary for their successful implementation. Review may be undertaken by members of the organisation, and/or extemal consultants on organisation and management, Concerned more with the current state of the organisation, What must be done now in order to meet set objectives and targets. What to prepare to face the demands of a changing environment. Give attention to its future development and success.

BENCHMARKING : 

BENCHMARKING `If you want to improve a particular aspect of your organization or service it provides, find someone else who is good at the activity and use them as a benchmark to raise your own standards.‘ Vary from an informal or casual look at how other companies are performing, gathering information about other company's best practices, to an in-depth investigation of a company's performance compared with that of its major competitors. External benchmarking has a role to play in raising business performance it should be used with care, and only after considering the circumstances and contingencies in the organisation involved. Benchmarking is one of the key tools for learning and enables forward-looking organisations to measure their performance against the best in the business. It should cover a balanced portfolio of practices and capabilities to bring about both short- and long-term success. Although benchmarking remains a vital first step in evaluating and measuring performance, its real value comes when it is applied in a consistent and ongoing way, and that it is not only of value for large corporations. The Small Business Service, an agency of the DTI, has developed a Benchmarking Index specifically for small to medium-sized enterprises for which it can bring real, tangible benefits and overall business improvement.

GAP ANALYSIS : 

Open systems framework - an organisation may be analysed in terms of an open systems framework: inputs; the series of activities involved in the transformation or conversion process: outputs; interactions with the environment; and performance of the system (organisation) in achieving its aims and objectives. The organisation mav also be examined in terms of interrelated sub-systems, for example tasks to be undertaken, technology employed, formal structure, behaviour of people and the process of management. The state of the sub-systems will reflect upon the effective­ness of the organisation as a whole. Key areas of performance and results - the extent to which the goals of the organisa­tion are pursued in accordance with an underlying ideology, codes of behaviour, sets of principles, and ethical and organisational foundation. The effectiveness of an organisa­tion might be assessed against Drucker’s eight key areas in which objectives need to be set in terms of business performance and results: market standing; innovation; productivity; physical and financial resources; profitability; manager performance and development; worker performance and attitude; and public responsibility. Design of organisation structure - one of the most significant factors which determine effective organisational performance is the correct design of structure. Part of the attempt to gauge organisational effectiveness could involve a review of structure to assess the extent to which it aids the process of management and the execution of work. In particular, does the structure harmonise with organisational goals and objectives, and maintain the balance of the socio-technical system? How flexible is the structure and how effective is the `fit' between structure, systems of manage­ment, the behaviour of people and situational variables? Profile of organisational characteristics - the overall effectiveness of an organisa­tion could also be gauged against Likert and Likert'.s profile of organisational characteristics, and the extent to which these meet the fundamental concepts of System 4 (participative group) management practices, that is: the principle of sup­port relationships; group decision-making, and methods of organisation and supervision; and high performance aspiration for all members of the organisation. The human organisation and operation of the firm can he examined in terms of the relationshins among causal, intervening and end-result variables. GAP ANALYSIS

Slide 68: 

The role of management - there are also a number of criteria which could be applied, more specifically, to an evaluation of the essential nature and role of man­agement. The activities of management could be judged, for example, against Bourn's set of ten interrelated activities; against Mintzberg'.s set of ten integrated roles which comprise the essential functions of a manager's job; or against Kotter and Cohen.s key activities of agenda-setting and network-building. Style of management could be assessed, for example, by the Blake and Mouton Leadership Grid in terms of an appropriate mixture of concern for production and concern for people. Managerial effectiveness - this could be gauged against Stewart's checklist of ques­tions for managers. It can be evaluated by Reddin'.s three-dimensional model of managerial behaviour: task orientation, relationship orientation and the demands of the situation; or by Longford’s criteria of: the manager's work; the manager himself/herself; the manager's relationship with other people; the manager as part of the organisation; and a single overall criterion of general effectiveness. In more gen­eral terms managers are judged not just on their own performance but by the actual results achieved by subordinate staff. Contribution of the HRM function - which could be gauged by taking account of intangible benefits such as the morale and job satisfaction of staff, as well as their attitudes, behaviour and performance; and quantified measures including staffing costs, turnover and stability indexes, staff development, errors in work, discipline or grievance hearings, employment tribunal cases, complaints from suppliers or cus­tomers. HR policies could be judged by full observance of all laws and codes of conduct relating to employment, and respect for ethic dimensions. The overall effec­tiveness of the HRM function could be assessed by the establishment of good Flit policies and employment relations, for example by comparison against Browning’s ten key factors, and the extent to which it makes a positive contribution to meeting the objectives of the Organisation. Organisational control systems - the effectiveness of organisational control sys­tems can be gauged by the extent to which they draw attention to the critical activities which are important to the overall success of the organisation. To what extent do control systems provide an effective means of checking progress to deter­Mine whether the objectives of the organisation are being achieved, and help lead to an improvement in performance? Are structures of control congruent with power and involvement, and the means of ensuring compliance among members?

Slide 69: 

Instead of seeking out approaches which are appropriate to their businesses, managers appear in perpetual search o f the holy grail of management. !t is not that these various ideas - whether re-engineering, empowerment or TQM - are poor concepts. Many do work but not if they are set in tablets of corporate stone. They have to be open to be flexible interpretations, and used when needed, rather than as all-encompassing `solutions'. Becoming the slavish discipline of a particular managerial luminary is likely to end in commercial disaster By way of a conclusion to this final chapter of Management and Organizational Behavionr, we can do no better than to reflect upon the words of Subir Chowdhury in his discussion of the twenty-first century organisation. A 21st century organization's success will depend on the effective use of talented people. Talent-cen­tered organizations will constantly search for the new talent, keep them by satisfying their needs, use them effectively, and create a challenging environment for them to work in. People create organiza­tions and people can destroy them. The most valuable commodity in business is not technology or capita! but people. The driving force behind a 21st century organization will be its people.

SYNOPSIS : 

SYNOPSIS The quality of managernent is one of the most important factors in the success of any organisation. There is, therefore, a continual need for managerial development as an integral part of the process of organisation development. Using accumulated knowledge of management theory it is possible to construct an integrated model of managerial behaviour and development. Attention needs to be given to the process of management development, including performance review, training and learning, management succession planning and career progression. Management development should be seen as a continuous process and involves managers accepting responsibility for self-development. Two major reports sponsored by the Institute of Management highlighted the importance of, and shortcomings in, management education, training and development in Britain. These reports were instrumental in the establishment of the Management Charter Initiative which has championed the competence-based approach to management development and the creation of Management Standards. Following demand from employers and government, Investors in People UK created a new Leadership and Management Model which is a development framework for ensuring organisations create, manage and invest in effective leadership.

Slide 72: 

There are a multiplicity of variables which impinge on any one organisational situation and which illustrate the complicated nature of the study of organisational effectiveness. One approach to organising is the McKinsey 7-S framework of inter­dependent organisational variables - structure, strategy, skills, staff, style, systems and shared values. In his study of companies and managers seeking to create the European future, Heller identifies ten key strategies in search of their own brand of excellence. The study by Goldsmith and Cluttcrbuck of top-performing companies draws attention to the balance between the ability to exert control and give autonomy. A key factor in organisational effectiveness is the successful management of change and innovation, and the concept of the learning organisation. One particular approach to improved organisational effectiveness is Total Quality Management (TQM). The successful organisation should as a matter of policy be constantly seeking opportunities to improve the quality of its products and/or services and processes. People are the key if initiatives are to succeed. Another concept to have received much attention is Business Process Re-engineering. This involves a fundamental rethinking of business processes, and a radical approach to organisational change and restructuring.

Slide 73: 

Tomorrow's Company promotes an inclusive approach and the EFQM proposes a model of excellence far leading to improved business results. Based on experience in a broad range of organisations, Steele suggests nine questions to help assess organisational effectiveness. Rummler and Brache propose a methodology based on three levels of per­formance: organisational; process; and job/performer. There are, however, a wide range of interrelated individual, group, organisational and environmental influences on behaviour in work organisations. Accordingly there are many different criteria which might be applied in attempting to assess organisational performance and effectiveness. An organisation may be analysed in terms of an open systems framework; it may be assessed in terms of key areas of performance and results, design of organisation structure, or against a profile of organisational characteristics. There are also a number of criteria which could be applied more specifically to an evaluation of the role of man­agement and managerial effectiveness. A programme of organisation audit involves a review of the operations of the organisation as a whole. However, in addition to con­cern for the current state of the organisation, attention must be given to its future development and success. The driving force behind tile successful twenty-first century organization will be its people.

MANAGEMENT IN ACTION EXERCISES 23.1 ~ 23.4 : 

MANAGEMENT IN ACTION EXERCISES 23.1 ~ 23.4