Introduction to Management - Exam 2 - Hamilton - Rutgers

The Four Elements of Organization Design

- Job design

- Organization structure

- Integrating and coordinating workflows

- Organization culture

Job Design

Job design is creating jobs in an organization that can be done effectively and efficiently while providing meaningful work for the employee

Hackman and Oldham Job Characteristics Model

Hackman and Oldham Job Characteristics model

Skill variety - The extent to which a job requires a worker to use a wide range of different skills and abilities

Task identity - The extent to which the job requires the worker to perform all the tasks needed to fully complete the task

Task significance - The extent to which the job affects the lives of other peple

Autonomy - The extent to which the employee is allowed to make choices about scheduling and how best to perform tasks

Feedback - The extent to which the employee recieves clear and direct information on how well they are performing the task.

Organization Structure

The grouping together of jobs into work groups, the delegation of authority and responsibility within an organization, and the formal reporting relationships of employees to supervisors.

Functional Organization Structure

Groups jobs that require similar skills and experience together into a single work group reporting to the leader of the organization

Divisional Organization Structure

Groups jobs together with people of diverse skills and experience who collectively focus on either providing specific products, or serving specific groups of customers, or serving specific geographical areas

Matrix Organization Structure

Groups jobs together simultaneously by function and a division

Agency

- Delegation of authority

- Centralized VS Decentralized organization structure

- Span of control

- Levels of hierarchy

Delegation of authority (agency)

Ultimate authority for decisions rests with the shareholders of the business

Centralized VS Decentralized organization structure (agency)

Centralized: Most decisions are made or atleast must be approved by the senior executives at the top of the organization

Decentralized: Many decisions are delegated to lower levels of management with those managers accountable for the consequences of their decisions.

Span of Control (agency)

The number of direct reports assigned to a manager. The more direct reports, the broader the span of control. The fewer direct reports, the narrower the span of control

Levels of hierarchy (agency)

The number of managerial levels between the top and the bottom of an organization. The fewer hierarchical levels, the flatter the organization. The more hierarchical levels, the taller the organization

Integrating and coordinating workflows

- Organization structure

- Liaisons

- Task forces

- Cross functional teams

- Integrating roles

Organization structure (Integrating and coordinating workflows)

Selecting a structure that will group the jobs together of those employees who need to routinely work together in order to accomplish their tasks

Liaisons (Integrating and coordinating workflows)

Individuals appointed with the responsibility to coordinate the activities of their group with the activities of one or more other groups.

Task forces (Integrating and coordinating workflows)

Made up of members of multiple groups who are assembled to address a specific need for coordination

Cross-functional teams (Integrating and coordinating workflows)

Made up of members of multiple groups who are assembled with ongoing responsibility for managing a key activity of the organization

Integrating roles (Integrating and coordinating workflows)

Individuals that in addition to their other responsibilities are charged with being a coordinator of activities with other groups.

Organization culture

A set of norms, beliefs, values, and attitudes that are shared by a group of individuals within an organization.

3 topics: Understanding an organizations culture, Strong VS Weak cultures, Changing an organization's culture

Understanding an organization's culture

Dimensions of culture and Levels of culture

Dimensions of culture

Content: What is deemed important including things like teamwork, accountability, and innovation

Consensus: How widely norms are shared across people in the organization

Intensity of feelings: How people feel about the importance of the norm. To what extent will people be recognized/sanctioned for supporting/violating the norm.

Levels of culture

Artifacts: Includes things that can be observed in the organization like dress code, physical layout, manner in which people adress each other, feel of the place, statements of philosophy/values, annual reports

Values: Includes the espoused and documented norms, ideologies, charters, philosophies, etc, that comprise the apparent values of the organization

Assumptions: Includes the underlying, taken for granted, and

unconscious thoughts of members of the organization that

determine perceptions, thoughts processes, feelings, and

behavior

Strong VS Weak Cultures

A weak culture is when there is not always a single culture that exists within an organization. There is a lack of uniformity around culture

A strong culture is one where the majority of the employees share the same norms, beliefs, values, and attitudes as it applies to their work related activities even if they are part of significantly different cultures

Changing an organization's culture

Boston consulting group BCG model dimensions

BCG Model Dimensions

Structured VS Flexible: How specifically are processes and acceptable behaviors defined? How closely are they followed?

Controlling VS Delegating: To what extent is power and decision making concentrated at the top or diffused throughout the organization ?

Cautious VS Risk permitting: How much does the organization support risk taking?

Thinking VS Doing: To what degree do people spend time developing ideas over executing them

Diplomatic VS Direct: How transparent are interactions and communications between workers and managers?

Individualistic VS Collaborative: To what extent are employees concerned with their own individual performance over shared goals?

Internal VS external: To what extent are processes and behaviors oriented toward the outside world versus the internal environment

The Agile Organization: 5 trademarks

North star embodied across organization

Network of empowered teams

Rapid decision and learning cycles

Dynamic people model that ignites passion

Next generation enabling technology

North star embodied across organization

Clear goals for the org allows teams to self identify projects that align with goals

Network of empowered teams

Flat organizational structures with limited hierarchy and no middle management. Teams are empowered and act autonomously with end to end accountability

Rapid decision and learning cycles

Risk-taking, failing, and learning are encouraged. Continuous people development

Dynamic people model that ignites passion

Culture that empowers the agile way of working. Emphasis on motivation and non monetary awards. Developing expertise of employees

Next generation enabling technology

Technology is core to every aspect of the organization as an enabler for quick identification of opportunities and quick reaction. Full transparency of organizations information. Rapidly unlock value and address needs

Three major elements of HR Management

Strategic human resources management

Human resource functional activities

Human resource related legal compliance

Strategic Human Resources Management

The identification of current and future talent requirements necessary to support the goals and strategy of the organization as well as the development and implementation of the plans and programs to assure the organization recruits, trains, develops, supports, and retains that talent.

Succession planning: The process of identifying likely candidates for future openings in key positions in the organization as well as evaluating each employee's potential for taking on added responsibility

Human resource management functional activities

Recruitment and selection

Training and development

Performance appraisal and feedback

Compensation and benefits

Employee relations

Recruitment and selection

Process for identifying, pursuing, and hiring qualified candidates to fill current and future available positions within an organization

Starts with organization design

Ideally fair and objective process

Internet has dramatically changed this process

Training and development

Training is teaching employees the skills necessary to perform effectively in their current job

Development is preparing employees to take on additional responsibilities for future roles or expanded responsibilities in their current role Many ways to train and develop employees

Performance appraisal and feedback

A process of employee evaluation and communication with the goal of providing timely and beneficial information to the employee, and to the organization, on the value of the contributions of the employee to the organization as well as identifying opportunities for improving employee performance.

An effective performance appraisal process requires several considerations covered in detail in the textbook

Compensation and benefits

A program and process for providing competitive pay and other incentive to employees in support of the organization's goals, strategy, and values

The goal is to attract and retain qualified employees and to motivate them to perform well

Several considerations in having a well designed program described in the textbook

Employee benefits involve health insurance, dental, life insurance, vacation time, sick days, dependent daycare assistance, and other programs

Employee relations

The various programs, services, activities, and communications enacted by the organization to foster a positive relationship between the organization and its employees

Town halls, suggestion boxes, org sponsored social events

The management of interactions with union employees is identified as labor relations

Employee motivation drivers

Training and development

Compensation and benefits

Performance appraisal and feedback

Employee welfare programs.

Human Resources Legal Compliance

Equal employment opportunity

Compensation and benefits

Health and safety

Equal employment opportunity

Prohibits discrimination against job candidates and employees based on race, religion, color, gender, national origin, age, or disability

Prohibits sexual harassment:

- Quid pro quo sexual harassment: occurs when consent to sexual acts affects job outcomes such as getting or keeping ones job

- Hostile work environment sexual harassment: occurs when unwelcomed sexual behavior creates an intimidated and offensive workplace for anyone. In this case, the behavior generally needs to be severe and pervasive

Compensation and benefits

Equal pay act of 1963, men and women have equal pay for equal work

Family and medical leave act of 1993, employers with over 49 workers provide up to 12 weeks unpaid leave for family or medical reasons.

Health and safety

Mandatory safety and health standards in the workplace

Administered by OSHA Occupational safety and health act of 1970

Employee Engagement

Employee engagement is the state of mind the employee has towards their job and their employer, combined with the level of positive and productive behavior exhibited by the employee on behalf of the employer

- Employee engagement is more than being loyal, motivated, and satisfaction

State of mind

The outlook employees have toward their organization and their jobs.

The state of mind of employees should be highly positive, proactive, appreciative, supportive, resulting in high self esteem and satisfaction

The extent to which the employee takes positive and productive actions

Behavior should be consistent with their positive mindset and include discretionary, self initiated, and extra effort in support of their organization

Behaviors of highly engaged employees

Say, stay, strive

Say

Speak positively about the organization to coworkers, potential employees, and customers

"I would not hesitate to recommend this organization to a friend seeing employment. Given the opportunity, I tell others great things about working here

Stay

Have an intense sense of belonging and desire to be part of the organization

"It would take a lot to get me to leave this organization. I rarely think of leaving this organization to work somewhere else"

Strive

Are motivated and exert effort toward success in their job and for their company

"This organization inspires me to do my best work every day. This organization motivates me to contribute more than is normally required to complete my work"

Employee Engagement Benefits

For employees: High self esteem, high job satisfaction, more career success, better health outcomes

For organization: Higher shareholder returns, higher employee productivity, better customer engagement, lower employee turnover

Four key drivers in employee engagement

Leaders

Managers

Culture

Human resource practices

Leaders

People who are committed to making their organizations great places to work and who make it clear they greatly value their employees

Link employees future success to the organization's future success through investment in development and growth

Earn the trust of their employees

Managers

Create good relationships with their subordinates and provide them with meaningful, well designed job roles.

Provide authority, autonomy, resources, training, and support to accomplish those jobs well

Provide appropriate recognition and rewards for doing so

Culture

Culture in the organization is cultivated to create a positive environment based on trust and respect, collegiality, open communication, pleasant working conditions, flexibility, collaboration, and a positive reputation

Human Resource Practices

Ensure fair performance review processes, fair compensation and benefits, work/life balance policies, employee support programs

Safe work environment

Diversity initiatives

Step 1 of Employee Engagement

Define and communicate what employee engagement means for the organization and why it is important to increase the levels of engagement (identify the benefits employees and the organization can expect from this initiative)

Step 2 of Employee Engagement

Measure the current level of Employee engagement. Based on measurement results and an understanding of the key drivers of employee engagement, identify and prioritize the initiatives that are likely to improve employee engagement levels. Set improvement goals for each initiative and overall employee engagement levels. This requires multiple methods of measurement be used to get an understanding of current levels of employee engagement including employee surveys, focus groups, and observations of employee behaviors

Step 3 of Employee Engagement

Develop the action plan for improving each identified priority based on proven approaches for effecting the known key drivers of employee engagement. Routinely monitor progress and make any necessary corrections. Confirm that the improvements implemented are resulting in achieving the target improvement goals established in step 2. Confirm the organization is realizing the expected benefits of an increased level of employee engagement

Step 4 of Employee Engagement

Reward and recognize those involved in the improvement initiatives and communicate to the organization the progress that was made to improve employee engagement levels

Performance Management

The delivery of superior results through ongoing measurement, assessment, evaluation, and improvement of the organization

Helps leaders to manage their organizations more effectively and efficiently, improve faster than their rivals, and create a distinctive competency that provides a competitive advantage leading to superior results.

Performance management principles

Role of leadership

Customer focus

High performance environment

Fact based management

Relentless improvement

Innovation and renewal

Role of leadership

Develop and communicate a clear direction for the organization and support that vision by investing in the capabilities necessary to fulfill it

Customer focus

Create superior value for customers based on an understanding and commitment to economically delivering customer requirements better than competitors

High performance environment

Use a process based view of the organization that effectively integrates multiple activities and functions working collaboratively to create outstanding results

Fact based management

Use a collection of balanced measurements and objective, comprehensive business assessments that are routinely reviewed and evaluated to understand how well the organization performs against the standards of excellence. Use this data to identify performance gaps and improvement opportunities

Relentless improvement

Embrace a commitment to continually do better through use of proven methodologies and tools coordinated by experts trained in managing and delivering successful improvement initiatives

Innovation and renewal

Continually seek creative ideas for transforming and renewing the organization by not only adopting today's best practices, but also by authoring tomorrow's best practices.

Approaches to embed performance management into the culture of the organization

Role of leadership

Use of experts and training

Use of proven methodologies

Role of Leadership (embedding performance management)

The leadership of the organization needs to communicate and reinforce the commitment to excellence achieved through a continual focus on the performance management principles

Use of experts and training (embedding performance management)

- Superior results often require repeated and ongoing successful improvement initiatives. To that end, successful improvement initiatives are more likely to be accomplished when using individuals who have the training and experience in repeatedly delivering successful improvement initiatives. These individuals will be experts in project selection and management. They will also know how to apply provement improvement methodologies and tools

Use of proven methodologies and tools (embedding performance management)

- The experts described above need to rely on a set of tools to be successful with their improvement efforts. These tools don't need to be reinvented with each project; they already exist as a set of tools that have been demonstrated to repeatedly lead to high impact successful project results. Application of tools and methods such as Six Sigma and Lean Methodology have routinely delivered significant results when used by properly trained and experienced experts.

Performance management key elements

Business process management BPM: Managers use business processes to help them better understand and manage the activities in their organizations

Business measurement, assessment, and evaluation: Managers use measurements and assessments to help them evaluate the performance of their organizations

Business improvement methods and tools: Managers use proven business improvement methods and tools to improve the performance of their organizations

Business Process Management

Process as an underlying framework for understanding the inter-related activities performed in an organization

Process - A series of steps or actions taken to convert a set of inputs into a set of outputs

Effective processes, efficient processes, Process maps (SIPOC, Swimlane, Lean value)

Effective processes

An effective process is one that delivers outputs that results in obtaining the desired behaviors from the intended users (customers) of the outputs of that process.

Efficient processes

An efficient process is an effective process that also generates an adequate return on the capital employed to operate the process.

What are process maps?

Process maps are visual depictions of the multiple steps involved in the conversion of inputs into outputs.

SIPOC, swimlane, lean value map

SIPOC

Suppliers, Inputs, Process, Outputs, Customers

Depiction of a process

Swimlane map

Swimlane identifies each of the departments involved in a process and depicts what activities they are responsible for completing and where in the overall process flow those activities take place.

Lean Value Process Map

A Lean Value Process Map is a tool used in lean management to visualize and analyze the steps involved in delivering value to a customer. It helps identify areas of waste, streamline processes, and ensure that every step adds value to the end product or service. It's often used in manufacturing, supply chains, and service industries to improve efficiency and effectiveness.

Business measurement, assessment, and evaluation

Helps organizations to understand how effectively and efficiently specific processes are performing as well as to understand how well the organization is performing overall to aid in the identification and prioritization of opportunities for improvement

Measurements at the process level

In measuring the business performance at the process level, the organization can collect data on the value of the outputs of processes to evaluate whether they are effective or not.

Measures of effectiveness, measures of efficiency, well dressed measure

Measures of effectiveness

Evaluate whether customer requirements are being met

Measures of efficiency

Evaluate whether the value of outputs relative to the cost of inputs are creating value for the organization

Well Dressed Measure of measurement charts

The concept of having measurement charts that include all of the information necessary to allow for rapid, complete, a nd accurate interpretation of the data presented.

Title: Clearly labeled at the top of chart indicating what is being measured

Goal: Clear indication of the target performance

Min: Clear indication of the minimum acceptable performance

Results: Clear indication of current and past performance

Competitor: clear indication of competitor's performance

Benchmark: Clear indication of world class standard of performance

Axes: Clearly labeled to indicate what is measured and in what time frame

Performance status: Color coded indicator of whether the performance is meeting standards (Green), needs immediate improvement (yellow), or is severely deficient (red)

Owner: Name of person responsible for producing chart

Updated: Date chart was most recently updated with data

Projects/impact/project mgr: description of what actions are being taken to address red or yellow performing processes, the current status of those actions, what those actions are intended to deliver,when they are expected to be completed, and who is responsible for leading those actions)

Organization level

There are several ways an organization can evaluate its overall performance, including a balance scorecard and a business assessment

Balanced scorecard

Provides a focus on both financial and non financial objectives described as Perspectives. The four perspectives are Financial, Customer, Internal Processes, and Organizational Capacity

Business assessment

Set of comprehensive criteria for conducting assessments of the organization across multiple business sectors

Malcolm Baldrige Framework 7 categories:

-Leadership

-Strategy

-Customers

-Measurement, analysis, and knowledge management

-Workforce

-Operations

-Results

Business Evaluation

The process of collecting and analyzing external and internal business data, assessing overall business performance, and identifying and prioritizing opportunities for improvement

Business Improvement Methods and Tools again - Role of Leadership

Leadership plays a proactive role in overseeing the prioritization, selection, and routine monitoring of improvement projects. This involvement by leadership reinforces the importance of these projects and helps ensure that necessary time and resources are being allocated to them. In addition, leaders also make sure that appropriate recognition is given to members of the organization who successfully deliver improved results from their projects.

Business Improvement Methods and Tools again - Role of Business Improvement Experts

Highly trained and experienced improvement experts are used to manage key improvement projects. Managing an improvement project, like managing most activities, requires knowledge, skill and experience. These unique set of characteristics for managing improvement projects are not commonly found in line managers nor is it easy for them to dedicate the time necessary to lead an improvement project while also performing their other responsibilities.

Business Improvement Methods and Tools again - Use of proven improvement methods and tools

These "experts" use proven improvement methodologies and tools as a key part of their approach. When used properly in improvement projects, these methods and tools save a lot of time in organizing a project and executing the steps necessary to complete it successfully. In addition, these methods and tools have proven to deliver high project success rates

DMAIC

Define, measure, analyze, improve, control

This frequently used methodology for managing improvement projects is well documented to deliver successful impfrovement results.

Six Sigma

A statistical term that refers to the number of standard deviations from a mean. Only 3.4 data points per million data points fall outside these limits

A process for eliminating defects

The upper and lower limits that are set for measuring outputs of a process are determined by defining the range of output quality that fully meets customer requirements. As long as the output of the process falls within this acceptable range it is considered to fully meet the standard or fully meet customer requirements.

A process that consistently achieves six sigma performance would be considered an excellent well controlled process with minimal levels of variation

Lean methodology

An improvement tool with a primary focus on eliminating waste in processes

Waste is defined as any activity that is not creating value for the customer or the converter in a process.

7 Causes of waste:

- Overproduction

- Correction (having to rework defective outputs)

- Inventory (storing output)

- Motion (movement of materials or people)

- Conveyance (requiring a component to be transported)

- Over processing (performing steps that don't create value)

- Waiting (not having parts or people available)

Leadership

The influence of a person over others as evidenced by the followers' motivation, loyalty, and high performance

Leadership effectiveness is measured by...

The overall performance of the organization for which the leader is responsible

The satisfaction of primarily the subordinates who report to the leader

Character Positive Traits Leadership Theory

Physical energy

Intelligence greater than the average of followers

Prosocial influence (the tendency to focus on helping others and society as a whole)

Behavior-based leadership theory

Task Oriented Leadership - Leaders who primarily focus on the tasks to be done

Person Oriented Leadership - Leaders who primarily focus on building relationships with others in the organization including subordinates

Extra traits (not necessary i think they were just in the textbook)

Charismatic leadership - Influence others through an engaging, persuasive, and attractive personality

Servant leadership - Builds support from subordinates by proactively supporting them in performing their roles successfully

Transformational leadership - Seeks to make significant change to the organization through espousing the ision, the goals, the plan, and the tasks to move in a new direction, as well as to communicate a persuasive rationale for changes, while seeking to link subordinates identity and self interest to achievement of the goals in order to gain their support

Strategic leadership - Focuses on the vision and the strategies necessary to fulfill that vision for the organization while persuading subordinantes to take the initiative to develop and implement the plans necessary to execute strategies.