Intro to Management Final

what is organization design?

supports getting work done by:

1. identifying the key tasks the organization must complete to fulfill its mission and to achieve its goals

2. grouping those tasks into productive and meaningful jobs

3. creating organizational structure to coordinate workflows and to delegate authority and accountability

4. developing the organization’s culture to support core values, goals, and strategies

what are the 4 key elements of organization design?

1. job design

2. organizational structure

3. integrating and coordinating workflows

4. organization culture

how do organizations create productive and meaningful jobs?

• the organization will need to determine what skills and experience is necessary to complete certain tasks

• if the job is too stressful, employees will feel less motivated and the organization will experience high turnover rates

• job has to be designed in a reasonable way for individuals to perform successfully (during Industrialization, they specialized jobs by simplifying tasks done in order for maximum efficiency)

what is the Hackman and Oldham Model?

characteristics of jobs with necessary contingency factors

what is organizational structure?

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

what are the various forms of organizational structure?

1. functional structure: groups jobs that require similar skills and experiences together into a single work group reporting to the leader of the organization

2. divisional structure: groups jobs with people of diverse skills and experiences who collectively focus on either providing specific products, or serving specific groups of customers, or serving specific geographical areas

3. matrix structure: groups jobs together simultaneously by function and by division

what is involved in organizational design?

delegation of authority, span of control, and levels of hierarchy

• span of control refers to the number of direct reports assigned to a manager so the more reports there are, the broader the span of control, the fewer there are, the narrower the span of control (broader is better to reduce the number of managers required and technology reduces the need for direct supervision)

what is “Agency”?

the authority to make most decisions is delegated from those shareholders to a Board of Directors elected by the shareholders. the board of Directors delegates authority to a CEO who delegated to subordinates

• each delegate is expected to act in the best interest of the shareholder using control mechanisms

what are the 5 approaches of integrating and coordinating workflows?

1. organizational structure: helps select a structure that groups jobs together of employees who work together to integrate and coordinate work more easily

2. liaisons: individuals appointed to coordinate activities of their group with other groups

3. task forces: members of multiple groups who assemble to address a specific need for coordination

4. cross functional teams: members of multiple groups who assemble with ongoing responsibility for managing a key activity of the organization

   • difference between CFTs and task force is that CFTs have ongoing responsibility for coordinating activities while a task force only stays in place to complete a single project

5. integrating roles: individuals have an additional responsibility to be a coordinator of activities with other groups (unlike liaisons, the integrator has other responsibilities)

what is organization culture?

it is the set of norms, beliefs, values, and attitudes that are shared by a group of individuals within an organization that align to core values, goals, and strategy

how do you understand the current culture?

• dimensions of culture

  • content: what is deemed important 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

• levels of culture

  • artifacts: things that can be observed

  • values: espoused and documented norms, ideologies, philosophies

  • assumptions: unconscious thoughts of members (assumptions are the roots of understanding the culture in an organization)

strong vs. weak culture

• strong: majority of the employees share the same norm, beliefs, values, and attitudes in their work-related activities even if they are in different cultures outside the workplace

• weak: lack uniformity, may be difficult motivating employees to support core values, goals, and strategies

how do you change the culture

• identify the “Target Organization Culture”

• BCG suggests there are 7 Dimensions of Culture in which an organization should set targets for each “dimension” to align with its strategy

  • structured vs. flexible

  • controlling vs. delegating

  • cautious vs. risk permitting

  • thinking vs. doing

  • diplomatic vs. direct

  • individualistic vs. collaborative

  • internal vs. external

• BCG also suggests there are 7 “critical levers” to move towards the target goal

  • leadership

  • people and development

  • performance management

  • informal interactions

  • organization design

  • resources and tools

  • values

what is agile organization?

It is made up of a network of teams within a people-centered culture that has rapid learning and fast decision cycles helped by technology and a common purpose to create value for all stakeholders

• emphasized team success over individual success

• yields impressive results like 3-4x higher customer satisfaction and return on digital investment

• McKinsey’s 5 trademarks of organizations using model:

  • North Star embodied across the organization (clear goals)

  • network of empowered teams (flat structure)

  • rapid decision and learning cycles

  • dynamic people model that ignites passion (culture)

  • next-gen enabling technology

what is human resources management?

it assures the success of an organization by creating a strategic HR plan aligned with the organization’s goals, strategy, core values, and culture

what are the 3 major elements of Human Resources Management?

1. strategic human resource management

2. human resource management functional activities

3. human resource related legal compliance

what is strategic human resource management?

• identification of current and future talent requirements to support goals and strategies, as well as, the development of plans and programs to assure recruitment, training, etc.

• many organizations perform succession planning which is the process of identifying likely candidates for future openings in key positions

what is human resource management functional activities?

activities that allow the organization to attract, develop, and retain talent

• recruitment and selection: process of identifying, pursuing, and hiring qualified candidates to fill positions (clear job descriptions, qualifications, reality check: shortcuts to getting the job)

• training and development: teaching employees the skills necessary to prepare them to take responsibilities (ex. sponsoring formal education programs, mentorship programs)

• performance appraisal and feedback: employee evaluation to provide information on the value of contributions and possible opportunities to improve performance (based on pre-established standards, goals)

• compensation and benefits: provide competitive pay and incentives to employees to support goals, strategy, and values (health, dental, and life insurance, sick days; goal is to attract and motivate employees)

• employee relations: programs, services, activities, and communications to foster a positive relationship between the organization and employees (ex. suggestion boxes, social events, surveys, celebrations)

what is human resource related legal compliance?

• Equal Employment Opportunity (prevent discrimination)

  • Equal Opportunity Act of 1972, Civil Rights Act of 1964, Age Discrimination Act of 1967, Vocational Rehabilitation Act of 1973, American with Disabilities Act of 1990

  • Civil Rights Act identified sexual harassment

    • quid pro quo: consent to acts affects job

    • hostile work environment: unwelcome behavior creates a bad workplace

• Compensation and Benefits (equal pay, childbirth, medical reasons)

• Health and Safety (Occupational Safety and Health Acts of 1970)

what is employee engagement?

the state of mind the employee has towards their job and employer, combined with the level of positive and productive behavior

• state of mind and positive and productive actions

high employee engagement

• achieve high levels of employee loyalty, motivation, or satisfaction

• employees achieve higher earnings-per-share growth rates

• employees become more productive with less absenteeism, lower turnover, willingness for constructive suggestions, engage in self-development activities, and going the extra mile

what are the key drivers of employee engagement?

• leaders: reinforce the employee’s future success to the organization with investments to the employee’s development and growth

• managers: have good relationships with subordinates and provide them with meaningful jobs (provide authority, autonomy, resources, training, and support)

• culture: create positive environment on trust, respect, communication, flexibility

• human resource practices: ensure fair performance reviews, compensation and benefits, work/life balance, diversity

• SAY, STAY, STRIVE

  • speak positively, sense of belonging, success and motivation

what are the key steps to implement employee engagement?

1. define and communicate what EE means and why it is important (identify benefits to expect from this initiative)

2. measure current level of EE to set improvement goals (employee attitudes and behavior measured with surveys, focus groups)

3. develop and action plan and monitor progress

4. reward and recognize those involved

what is performance management?

the delivery of superior results through ongoing measurement, assessment, evaluation, and improvement of the organization it is important to provide a competitive advantage and improve faster than rivals

what are the principles of performance management?

• role of leadership

  • use of experts and training

  • use of proven methods and tools

• customer focus

• high-performance environment

• fact-based management

• relentless improvement

• innovation and renewal

what are the 3 key elements of performance management?

1. business process management

2. business measurement, assessment, and evaluation

3. business improvement methods and tool

what is business process management?

the underlying framework to understand the inter-related activities performed in an organization

• ability of a manager to design, develop, improve, and manage processes is essential to get work “done well”

effective vs. efficient processes

• effective process: delivers outputs that results in obtaining the desired behaviors from customers

  • requirements of a customer create value and motivation to behave in beneficial ways (customer loyalty and referral)

• efficient process: creates value for customer and generates an adequate return on capital and minimizes waste

what is SIPOC?

process map

• Suppliers, Inputs, Processes, Outputs, and Customers (who, desired behaviors, requirements)

what is Swimlane?

process map that prepares and distributes payroll to employees

• identifies each of the departments involved and what activities they are responsible for

what is Lean Value?

process map that identifies time required to complete each step and helps identify areas of waste

what is business measurement, assessment, and evaluation?

helps organizations understand how effectively and efficiently specific processes are performing to aid improvement

• evaluation: process of collecting and analyzing external and internal data

measures of effectiveness vs. efficiency

• measures of effectiveness: whether customer requirements are met

• measures of efficiency: whether the value of outputs relative to the cost of inputs create value

what is a well-dressed measure?

a measurement chart with all the information necessary for rapid, complete, and accurate interpretation

what is a balanced scorecard?

by Kaplan and Norton that focuses on both financial and non-financial objectives

• financial, customer, internal processes, and organizational capacity

what is the Malcolm Baldridge assessment?

NIST in the U.S Department oversees and includes criteria for conducting assessments of organizations

• 7 categories

  • leadership

  • strategy

  • customers

  • measurement, analysis, knowledge management

  • workforce

  • operations

  • results

what is business improvement methods and tool?

• role of leadership: monitor improvement projects to ensure time and resources are being allocated

• role of business improvement experts: skilled experts manage projects

• use of proven improvement methods and tools

what is the DMAIC/Six Sigma?

uses standard deviation from a mean which provides upper and lower limits to measure outputs of a process to see if it falls within the acceptable range

what is lean methodology?

focuses on eliminating waste in processes

• main causes of waste:

  • overproduction

  • correction

  • inventory

  • motion

  • conveyance

  • overprocessing

  • waiting

managers vs. leaders

• managers are knowledgeable, action-oriented, informed, tactical

• leaders are insightful, visionary, influential, strategic

what are managers required to do?

make decisions on a daily basis and communication skills are essential

• responsible for supervising activities of others

• leading individuals beyond guidance

• necessary to exhibit leadership traits

what is leadership?

the influence of a person over others resulting in followers’ motivation, loyalty, and high performance to support the leader’s vision, goals, and direction

• measured by:

  • performance of organization

  • satisfaction of the subordinates who report to the leader

what is character trait leadership theory?

traits include physical energy, greater intelligence, prosocial influence (however none correlated to effectiveness)

what is behavior-based leadership theory?

task-oriented and person-oriented (focus on building relationship with others)

what is the contingency leadership theory?

• by Fiedler created due to the limitations of character trait and behavior-based theories

• leader-member relations: extent to which followers trust and are loyal

• task structure: extent to which work performed is clear

• position power: amount of reward and coercive power

what are the styles of leadership?

• charismatic

• servant = support from subordinates

• transformational = make significant change with the vision, goals, and plan to move to a new direction

• strategic = focus on vision and strategies

• empowerment-oriented = provide subordinates with resources and authority to develop on their own

• transactional = use rewards and punishments

how do managers make decisions?

• ask whether action is necessary (bounded rationality)

• consider what level in the organization should decision-making responsibility be delegated which depends on knowledge and capacity

• understand potential consequences of poorly made decisions

how do managers communicate effectively?

• identify goals and intent (empathy, concern, respect)

• consider non-verbal signals

• understand the nature of communication and improve delivery and reception

how do managers lead individuals and groups?

• networking and relationship building

• commitment to moral compass and vision/mission

• demonstrating emotional intelligence

• enable others to succeed

how do managers deal with conflict?

• understand reason for conflict and show impartiality and acknowledgement

• assess whether action is warranted

  • if conflict violates company policy, threatens violence, or leads to illegal acts then immediate action

• find a neutral location and allow time to pass asking if parties want assistance or not

• if directly involved, suggest asking other employees for help

• if due to personal differences, suggest the conflict is not appropriate in the workplace

• if addressing inappropriate behavior, do not focus on the character of the person and make clear the behavior cannot be continued without consequences

• refer to HR and professionals (ex. drug use)

how do managers negotiate?

• importance of preparation (goals and target outcomes)

• understand the source of power (BATNA = Best Alternative to a Negotiated Agreement)

• distinction between positions and interest (ability to see the opportunities and satisfaction of interest from the other party’s perspective)

• tension between creating value and claiming value (maximize mutual benefit)

summary

• purpose = “Right Work, Done Well”

• cannot learn by reviewing an instruction manual

• understand basic concepts and gain experience

• develop a vision and mission to describe the purpose of its existence

• create value to be profitable

• goals/objectives define success

• growth can come from internal development and innovation, partnerships with other organizations, innovation, and geographic expansion

• conduct business in a legal, ethical, and socially responsible manner

• “Right Work, Done Better!”