Intro to Management Midterm 2

The Four Elements of Organization Design

1. Job Design

2. Organization Structure

3. Integrating and Coordinating Workflows

4. Organization Culture

Job Design

Creating jobs in an organization that can be done effectively and efficiently while providing meaningful work for the employee

Organization Design

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.

Options of Organizational Structure

1. Functional Structure

2. Divisional Structure

3. Matrix Structure

Functional Structure

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

Divisional Structure

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

Matrix Structure

Groups jobs together simultaneously by function and by division

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 effects the lives of other people

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 receives clear and direct infor-mation on how well they are performing the task.

Delegation of Authority

in incorporated businesses means, ultimate authority for decisions rests with the shareholders of the business

Agency

Authority to make most decisions is delegated from those shareholders to a Board of Directors elected by the shareholders. The Board of Directors then dele-gates some of its authority to a Chief Executive Officer (CEO) appointed by the Board of Directors who in turn delegates some of her/his authority to subordinates and so forth.

Centralized Organizational Structure

most decisions are made, or at least must be approved, by the senior executives at the top of the organization.

Decentralized Organizational Structure

Many decisions are delegated to lower lev-els of management with those managers accountable for the consequences of their decisions (good or bad)

Span of Control

Refers to the number of direct reports assigned to a manager. More = broad. Less = narrow

Levels of Hierarchy

Refers to the number of managerial levels between the top and the bottom of an organization. Fewer = flatter organization. More = taller organization.

Five Common Approaches to Integration and Coordination

1. Organization Structure

2. Liaisons

3. Task Forces

4. Cross Functional Teams

5. Integrating Roles

Liasons

are individuals appointed with the responsibility to coordinate the activities of their group with the activities of one or more other groups

Task Forces

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

Cross Functional Teams

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

Integrating Roles

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

Organization Culture

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

Aspects of Organizational Culture

1. Understanding an Organization’s Culture

2. Strong vs. Weak Culture

3. Changing an Organization’s Culture

Dimensions of Culture by Edgar Schein

1. Content

2. Consensus

3. Intensity of Feelings

Levels of Culture

1. Artifacts

2. Values

3. Assumptions

Strong Culture

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 outside of their workplace.

Boston Consulting Group(BCG) - 7 Dimensions of Culture

1. Structured vs Flexible

2. Controlling vs Delegating

3. Cautious vs Risk Permitting

4. Thinking vs Doing

5. Diplomatic vs Direct

6. Individualistic vs Collaborative

7. Internal vs External

Boston Consulting Group(BCG) - 7 Levers for Moving to Target Culture

1. Leadership

2. People and Development

3. Performance Management

4. Informal Interactions

5. Organization Design

6. Resources and Tools

7. Values

5 Trademarks of the Agile Organization

1. North Star Embodied Across the
   Organization

2. Network of Empowered Teams

3. Rapid Decision and Learning Cycles

4. Dynamic People Model that Ignites
   Passion

5. Next-Generation Enabling Technology

Three Major Elements of HR Management

1. Strategic Human Resources
   Management

2. Human Resource Management
   Functional Activities

3. Human Resource Related Legal
   Compliance

Strategic Human Resources Management

1. Identification of current and
   future talent requirements

2. Development and implementation
   of plans and programs for
   recruitment, selection, training,
   development, support, and
   retention of the employees
   necessary to support the goals
   and strategies of the organization

Succession Planning

Is 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.

5 HR Management Functional Activities

1. Recruitment and Selection

2. Training & Development

3. Performance Appraisal & Feedback

4. Compensation and Benefits

5. Employee Relations

Recruitment and Selection

Is a process for identifying, pursuing, and hiring qualified candidates to fill current and future available positions within an organization. 

Training

Teaching employees the skills necessary to perform effectively in their current job

Development

Preparing employees to take on additional responsibilities for future roles or
expanded responsibilities in their current role

Performance Appraisal and Feedback

1. Process of employee evaluation and communication

2. Goal is to provide timely and beneficial information to the the
   employee, and to the organization

3. Assess and communicate the value of the contributions of the
   employee to the organization as well as identify opportunities for
   improving the employee’s performance

Compensation and Benefits

1. Program and process for providing competitive pay and other incentives to employees in support of the organization’s goals, strategy, and values.

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

Employee Relations

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

Employee Motivation Drivers

1. Training & Development

2. Compensation and Benefits

3. Performance Appraisal & Feedback

4. Employee Welfare Programs

Human Resources Legal Compliance

1. Equal Employment Opportunity

2. Compensation and Benefits

3. Health and Safety

Equal Employment Opportunity

1. Prohibits discrimination against job candidates and employees based on race, religion, color, gender, national origin, age (above 40), or disability

2. Prohibits sexual harassment

3. Opportunity Act of 1972, Civil Rights Act of 1964, The Age Discrimination Act of 1967, The Vocational Rehabilitation Act of 1973, Disabilities Act (ADA) of 1990

Quid Pro Quo Sexual Harassment

Occurs when consent to sexual acts affects job outcomes such as getting or keeping one’s job.

Hostile Work Environment Sexual Harassment

Occurs when unwelcomed sexual behavior creates an intimidating and offensive workplace for anyone. In this case the behavior generally needs to be severe and pervasive.

Compensation and Benefits

1. Equal pay for equal work (gender)

2. Family and medical leave (12 weeks unpaid leave)

3. The Equal Pay Act of 1963, The Family and Medical Leave Act of 1993

Health and Safety

1. Mandatory safety and health standards in the workplace

2. Occupational Safety and Health Act of 1970, Occupational Safety and Health Administration (OSHA)

Employee Benefits

may include health insurance, dental insurance, and vacation time, with costs often shared between employer and employee.

Employee Engagement

• 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

• Is more than employee loyalty, motivation, and satisfaction

State of mind

• Highly positive

• Proactive

• Appreciative

• Supportive

• High self-esteem & satisfaction

Positive and Productive Behavior

• Discretionary actions

• Self-initiated

• Extra effort

Employee Engagement Benefits for Employee

• High self-esteem

• High job satisfaction

• More career success

• Better health outcomes

Employee Engagement Benefits for Organization

• Higher shareholder returns

• Higher employee productivity

• Better customer engagement

• Lower employee turnover

Key Drivers of Employee Engagement

1. Leaders

2. Managers

3. Culture

4. Human Resources Practices

Leaders

• Committed to making their organizations great places to work

• Greatly value their employees

• Link employee’s success to organization’s success

• Invest in employee’s development and growth

• Earn the trust of employees

Manager

• Develop good relationships with subordinates

• Provide them with meaningful, well-designed jobs

• Provide employees with authority, autonomy, resources, training, and support for achieving success in their jobs

• Provide recognition and rewards when work is done well

Culture

• Trust and respect

• Collegiality

• Open communication

• Pleasant working conditions

• Flexibility

• Collaboration

• Positive reputation

Human Resources Practices

• Fair performance review process

• Fair compensation and benefits

• Work/Life balance initiatives

• Employee support programs

• Diversity and inclusion initiatives

• Safe work environment

Step 1 of Employee Engagement

Define and communicate what Employee Engagement means for the organization and the benefits for employees and the organization to pursue this initiative

Step 2 of Employee Engagement

Measure current levels of Employee Engagement. Based on results, identify and prioritize initiatives to improvemEmployee Engagement levels

Step 3 of Employee Engagement

Develop action plan to address priorities, implement plan, monitor progress, make corrections as necessary, and confirm the organization and employees are realizing the expected benefits

Step 4 of Employee Engagement

Reward and recognize those involved, and the organization overall, for achieving Employee Engagement goals

Performance Management

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

Why is Performance Management Important?

Helps Leaders:

• Manage their organizations more effectively and efficiently

• Improve faster than their rivals

• 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 organiza-tion 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 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

Approach to Embed Performance Management into the Culture of the Organization

• Role of Leadership

• Use of Experts and Training

• Use of Proven Methodologies and Tools

Role of Leadership

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 & Training

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 proven improvement methodologies and tools.

Use of Proven Methodologies & Tools

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 re-invented 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

• Business Measurement, Assessment, and Evaluation

• Business Improvement Methods & Tools

Business Process Management

An underlying framework for understanding the inter-related activities performed in an organization.

Effective Process

delivers outputs that results in obtaining the desired behaviors from customers (users) of the process

Efficient Process

an effective process that also generates an adequate return on the capital employed to operate the process

SIPOC - Process Map

Suppliers, Inputs, Process, Outputs, Customers

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

Well- Dressed Measure

Includes:

• Title

• Goal

• Min

• Results

• Competitor

• Benchmark

• Axes

• Performance Status

• Owner

• Updated

• Projects/Impact/Project Mgr.

Baldrige Framework

1. Leadership

2. Strategy

3. Customers

4. Measurement, Analysis, and Knowledge Management

5. Workforce

6. Operations

7. 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.

Examples of Methods and Tools

1. DMAIC/Six Sigma: Define, Measure, Analyze, Improve, Control

2. Lean Methodology: 7 causes of waste

waste

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

7 primary causes of waste

1. Overproduction (producing more products or components than are currently required to meet demand),

2. Correction (having to rework a defective output of a process), 

3. Inventory (the need to store output until it is required), 

4. Motion (the need for excessive movement of materials and/or people as part of performing a process),

5. Conveyance (similar to motion in terms of requiring a component of the process to be transported some distance for further processing),

6. Over-processing (performing steps in a process that do not create value for the customer or the converter),

7. Waiting (not having parts or people available when required to perform the next step in the process)

Kaplan and Norton

The concept of an organization using a 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.

Leadership

The influence of a person over others (followers) as evi-denced by the followers’ motivation, loyalty, and high performance in support of the leader’s vision, goals, and/or direction.

Traits of Manager

Knowledgable, Action-Oriented, Informed, Tactical

Traits of Leader

Insightful, Visionary, Influential, Strategic

Leadership Effectiveness

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

2. The satisfaction of primarily the subordinates who report to the leader

Major Categories Behavior Based Leadership

1. Task Oriented Leadership

2. Person-Oriented Leadership

Task-Oriented Leadership

primarily focus on the tasks to be done

Person-Oriented Leadership

primarily focus on building relationships with others in the organization including subordinates

Charismatic Leadership

influences 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 vision, 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 subordinates to take the initiative to develop and implement the plans necessary to execute the strategies