final management
The four functions of management: Planning: Setting objectives and determining how to accomplish them.
Organising Implementation phase: grouping and assigning task, allocating resources and coordinating.
Leading: Influencing others to do their best work for the organisation.
Controlling: Measuring performance against desired result
Types of managers: Top managers: Top of the hierarchy, responsible for the whole organisation. Middle managers: Responsible for business units and departments (Area manager)First-line managers :Responsible for production of goods and services. Smaller work groups. Managerial skills
Technical skills: The ability to apply expertise and perform a special task. E.g., master in method
Human Skills: The ability to work well with other people through other people. E.g., emotional intelligence.
Conceptual skills: The ability to see the organisation as a whole and the relationship between parts to think analytically and see the big picture. E.g., breaking down problems seeing the relationships between parts.
Types of Decisions: Programmed: Decisions that are made in routine, repetitive, well-structured situations. Situations that have occurred often enough to enable rules to be developed and applied in the future.
Non-Programmed: Decisions made in response to a situation that is unique, poorly defined, and largely unstructured and have important consequences.
1: Identify and Define the problem
Common mistakes when identify problems are:
Dysfunctional responses such as complacency (we are OK!) or defensive avoidance (deny or avoid the importance of danger)
Common mistakes when defining are:
Choosing the wrong problem – deal with most important problem first, and don’t focus on symptoms
Poorly defining the problem e.g. too narrow or too broad
2: Generate and Evaluate solutions:
Generate possible solutions that will respond to the needs of the situation and correct the underlying causesOne approach is Brainstorming – free wheeling and building on one another's ideas, without criticism Cost benefit analysis (see readings)
Common error is selecting a particular solution to quickly, The key problem is that searching for alternatives costs time and money. However in actual practice, the great majority of managers fail to search for enough viable alternatives
Or not getting past this stage! (Again paralysis by over-analysis)
3: Choose a solution:
Choosing the most promising of several alternative courses of action
Non- programmed decisions
Typically an alternative with the least amount of risk and uncertainly
Some intuition and experience used here
Risk propensity – the willingness to undertake risk with the opportunity of gaining an increased pay-off
Behavioural influences on decision making:
The challenge is to recognise common decision-making biases - for example:
Representativeness: People can be over influenced by stereotypes
Availability: Recall ability of similar instances
Framing: People make decisions based on how the problem is presented to them.
Week 2: Leadership & Motivation
Power Theory:
Power: The potential ability to influence the behavior of others
- Influence: The effect that a person’s actions have on the attitudes, values, beliefs or behavior of others.
Strengths: Natural talents and abilities that have been supported and reinforced with learned knowledge and skills
Effective leadership not about having the ‘right’ traits; it’s about recognising, developing and applying strengths
- Some traits are important (e.g., drive, integrity, cognitive ability), but having these traits doesn’t necessarily make leaders effective
Two dimensions of leadership style:
Concern for production vs. Concern for people
Situational leadership model:
Leaders adjust their styles depending on the readiness of their followers to perform in a given situation.
Readiness — how able, willing and confident followers are in performing tasks.
Servant leadership:
A servant leader transcends self-interest to serve others, the organisation, and society
They give ideas, recognition, credit for accomplishments, etc. to others, for the good of their employees and the organisation
Authentic leadership:
Individuals who know and understand themselves, act consistently with their ethical values
Employees know what the leader stands for
Creates trust
Empower and inspire others with openness and authenticity
TAKE HOME MESSAGES:
Leaders use power to influence others
Soft sources of power create engagement
Although certain traits an behaviours are important for leaders, leaders adjust their leadership style to the situation à contingency approach
Servant leaders give to others for the good of organisation/people
Authentic leaders act according to their values
What is motivation?
Set of forces that initiates, directs and makes people persist in their efforts to accomplish a goal
Ability x motivation = performance
A highly motivated workforce is indispensable to the achievements of sustained high-performance results
Motivation continuum
According to self-determination theory (Deci & Ryan), motivation lies on a continuum of self-determination from intrinsic motivation to extrinsic motivation
Those intrinsically motivated do things of e.g. interest and satisfaction à perform better.
Those extrinsically motivated do things because of e.g. rewards and punishment
Maslow’s hierarchy of needs theory:
Needs are physiological or phycological deficiencies a person feels the compulsion to satisfy
In short, We want what we don’t have.
Deficit principle:
A satisfied need is not a motivator behaviour, people act to satisfy ‘deprived’ needs, those for which a satisfaction ‘deficit’ exists.
Progression principle:
The five needs exist in a hierarchy of ‘prepotency’ a need at any level only becomes activated once the next lower level need has become satisfied
What are the managerial implications?
Employees need a change
Once a lower-level needs are satisfied, other things become important
Employees on different levels should be treated differently
Criticism of theory:
Research has found only little consistent support
For example, the more a need is met, the more important it can become
Goal setting theory:
Motivation can be increased and performances enhanced by setting specific an challenging goals and giving them timely feedback.
Challenging and specific goals are more likely to foster success.
Accepted goals are goals that are agreed on by yourself or your employers that can help propel to success
Feedback is critical to know you are on the right path
Making progress toward goals is key to motivation
Implications for management?
Use specific and challenging goals to keep people focused and motivated
Have employees participate in setting goals and determining how to achieve them
Give employees regular feedback on their progress
Equity theory
Based on the principle of social comparison
People are motivated to seek social equity in the rewards they expect for performance
Me < other = under rewarded
Me = other = equity
Me > other = over rewarded
Implications for management
Look for and correct inequities – two way communication to understand the perception of (in)equity
Ensure decision-making processes are fair
Distributive justice: outcomes fairly distributed
Procedural justice: fairness of procedures for outcome allocation
TAKE HOME NOTES:
Hierarchy of needs: We want what we don’t have
Goal setting: goals work best when challenging and specific with regular feedback
Equity theory: people are motivated to seek social equity in the rewards they expect for performance
Week 3:
Mission: A unique declaration of the basic purpose & scope
How do we see ourselves?
Goals: a desired future circumstance or condition an organisation (or individuals) attempts to realise
Where are we going?
Plans: blueprints for goal achievement and resource allocation – schedules, tasks, actions
How are we going to get there?
The concept of Planning usually incorporates all three
i.e. How do we see ourselves? Where are we going? How are we going to get there?
Because goals define desired outcomes for organisations (or individuals), they also serve as performance criteria
They provide a standard of assessment : e.g. 15% growth, a B in our course (which also links into the control function in next weeks topic)
The overall planning process prevents managers from thinking merely in terms of day-to-day activities
Organisation theory’s: mission statement:- corporate-departmental-operational
Approach to planning process:
Start with the Mission statement
Define your goals (objective)
Determine where you stand in relation to the goals (strengths and weaknesses)
Develop premises regarding future conditions (i.e. alternative scenarios)
Analyse and choose among plan alternatives
Implement the plan and evaluate results
Mission statement: A unique broad declaration of the basic purpose and scope of the organisation that distinguishes it from others
Note: personal mission statements are also common
It is usually a statement of rationale for existence, shared goals. core values, and philosophies
A written mission statement can be anything from a few sentences to several pages
The reason for an organisation’s existence
Good mission statements identify:
Customers (what market are we in?)
Products and/or services (what do we produce?)
Location (where do we operate?)
Underlying philosophy (what kind of difference do
we want to make in the world?)An important test of the mission is how well it serves the organisation’s stakeholders
Smart Goals.
Single-Use Plans
Plans that are developed to achieve a set of goals that are unlikely to be repeated in the future
Standing Plans
Ongoing plans used to provide guidance for tasks performed repeatedly within the organisation
Stratergy: Strategic thinking; In essence it means taking a long-term view
and to see the big picture‘Strategic thinking and planning’ positively affect an organisation’s performance and financial success
Strategic thinking
should happen at all
levels of an organisationstrategic management?
It is the set of decisions and actions used to formulate and implement strategies that will provide an organisation with competitive advantage* in its environment
Strategic Management involves an explicit strategy which is:
An action plan providing long-term direction and guiding the use of its resources to accomplish organisational goals
‘A pattern in a stream of decisions’ (Mintzberg)
Competitive advantage means operating in a successful way that is difficult for competitors to imitate
It is what sets the organisation apart from others
Sustainable competitive advantage is consistently dealing with market and environmental
forces better than competitors
Porter’s Generic Strategies model
Generic strategies for gaining competitive advantage:
Differentiation strategy
Cost leadership strategy
Focused differentiation strategy
Focused cost leadership strategy
Product life cycle: Introduction and growth stages
Use differentiation and prospector strategies
(e.g. promoting and gaining a market presence)Maturity stage
Uses focus and/or cost leadership strategies
(e.g. keeping customers and production efficiencies)
Decline stage
Uses defender or analyser strategies
(e.g. ‘last iceman’, exit strategies)
Week 4:
Control: The process through which managers regulate organisational activities to make them consistent with established in plans and standards of performance:
Requires information on standards and actual performance (e.g., number of research publications, Hours of teaching)
Regulates the quality of product (e.g., High quality research, manufacturing- products without defects)
Encourages wanted behaviours and discourages unwanted behaviours of individuals (e.g., research benefiting NZ, student-centred teaching practice)
Help managers avoid problems: Play six important roles:
Coping with uncertainty: monitoring specific activities and reacting quickly to significant changes (e.g. community testing-COVID)
Detecting undesirable irregularities: product defects, cost overruns, rising staff turnover
To reduce costs, increase productivity or add value: by eliminating waste, increasing outputs
Alerting managers to possible opportunities: highlighting better than expected situations
Handling complex situations: enhancing coordination within large organisations
Decentralising authority: encourage controlled lower level decision-making
Barriers to control success:
Barriers to a successful control system are:
Too much control: try to exert too much control (e.g., Bureaucratic organisations)
Too little employee participation: involving employees can bring legitimacy to control process
Overemphasis on means instead of ends: can lead to ‘game playing’ or ‘beating the system’
Overemphasis on paperwork: lead to too much focus on quantification
Overemphasis on one instead of multiple approaches: one indicator may not be enough
External environment…
Control process..
Strategic level | Business plan projections on loan disbursements for 5 years | Senior management revisiting the business plan yearly basis |
Departmental level | Number of loans to be disbursed each region (quarterly) | Regional managers comparing target vs actual loans disbursed (quarterly) |
Operational level | Each branch having monthly target of loan disbursement | Branch managers monitoring and taking actions for loan disbursement |
Week 5 HRM:
HRM = ensuring the organisation has the right number of people, with the required knowledge, skills, abilities and competencies, at an affordable cost, who are motivated and committed to achieving the strategic aims of the organisation. Motivation is a set of forces that initiates, directs and makes people persist in their efforts to accomplish their goal
Recruiting
Activities to develop a pool of qualified candidates to apply for a job.
Recruitment can be done internally (within the organisation) and/or externally (outside the organisation).
Recruitment should be a mutual process between the employers and the applicant.
Applicant reactions are important
Realistic Job Preview (RJP):
Not just ‘selling’ the best aspects of a job, but…
Providing job candidates with all pertinent information about a job and the organisation.
E.g. irregular hours, travel, etc.
Leads to higher retention, satisfaction.
Structured (asking the same questions from all applicants) & unstructured interviews.
Unstructured interviews not very valid. Cannot make comparisons between candidates. Structured interviews often include behaviour questions.
Reflection of past experience
STAR technique:
Explain the Situation – Task - Action - Result
Week 8: Managing Diversity
Chiefly leadership reading; Managing diversity parts 1 and 2 lecture slides
Terms:
Māori customary patterns:
Chiefly (rangatira) mana (authority, power)
Mana acquired through:
Spirituality
Inherited
Acquired through achievement or weakened.
Ability to provide food (measure of wealth) own people;
Visitors (hospitality)
Rāhui (restrictions of food)
Judge others interest
Extending tribal strength
Slaves through conquest
Political marriages
Extending land-use rights creating obligations
Gift exchanges
Mana whenua
Power associated with the possession of land and ability to provide food for people.
Re-discovery of Aotearoa and New Zealand
Commerce and trade
Trade and Christianity advanced to NZ
1810s Church missionaries
Commercial activity:
timber, flax, shore whaling, ship building, trading
1830s semi-permanent trader-settlers
British and American sperm whalers
Whaling major industry financed by Sydney merchants.
Sydney and Hobart sealing gangs.
Māori and Pākehā came together in commerce.
Continued issues and tensions over resources and lands
He Whakaputanga (1835)
Declaration of Independence
Land purchases by New South Wales buyers, dubious legality
Prevent other countries - France and America from making deals
34 northern chiefs signed (52 by 1839)
Confederation of United Tribes
Ngapuhi
King William
Populations just before 1840:
90,000 – 200,000 Māori
2,000 permanent settlers (1400 North, 600 South)
Te Tiriti o Waitangi (1840)
The Treaty of Waitangi
An agreement drawn up between
representatives of the British Crown
representatives of Māori iwi and hapū
Bay of Islands where it was first signed on 6 February 1840
Signed in a number of other locations around the country in the following months
The Treaty of Waitangi has two texts
The Māori version is not an exact translation of the English.
Treaty principles (Crown and Māori)
The principle of partnership and consultation:
working together
in good faith
providing for Māori autonomy
framework for two peoples to live in one country
The principle of active protection:
of Māori by the Crown
of Māori interests
of possessions so that tikanga (culture and protocols) and taonga (treasures, e.g. language) are valued.
The principle of exchange
the right of the Crown to govern for the right of Maori to retain their full tribal authority and control over lands and possessions
Prejudice
different = deficient
Discrimination
acting on a prejudice
Stereotypes
assumptions about a group
In NZ the pay gap is static: women $30.15 vs men $33.00
Pākehā man ($1):
Pākehā women (89c);
Māori or Asian man (86c);
Asian women (83c);
Pasifika man or Māori women (81c);
Pasifika women (75c); missing out on $488,000 (40yr)
Organisations are places where good relationships and exchanges matter
As managers:
question your prejudices
engage in conversations to understand people’s differences and needs
value differences
consider what people need to do their jobs (equity)
Week 11 operations:
The tools and techniques used to ensure that goods and services are delivered successfully to customers
Is the set of processes that transforms inputs into outputs
Manufacturing org:
Produce physical goods e.g. furniture
Good can be stored for later consumption e.g. chocolate bars
Production process
removed from customerCommonly have
standardised outputs
Service org:
Produce non-physical good e.g. university study
Simultaneous production and consumption e.g. haircut
Consumer participates
in production process
Commonly have customised outputs
Process:
A process is any activity or group of activities that takes one or more inputs, transformations and adds value to them
And provides one or more outputs for its customers
Productivity formula:
Productivity = Outputs/Inputs
Onions cut / Hour of labour
Output / Input
2,000 / 8 hours = 250 onions/hr
Competitive Advantage : allows an organisation to deal with market and environmental forces better than competitors
OM Product & Services Strategy options are differentiation, low cost, rapid response
Process: activities that takes one or more inputs, transformations and adds value to them
Productivity: what is it and how is it calculated?
Value Chain Management: logistics and supply chain
Negotiate with many suppliers
Long term ‘partnering’
Vertical integration
Week 12; marketing
Create value for customers and build customer relationships
factors influence marketing strategy
marketing/mix 4p's product,price,promotion, place
Place
Distribution
Making the offering available to the customer at the right time and place.
Logistics
Ensuring that products are in the right place at the right time in the right quantity
Consumer behaviour:
The analysis of the behaviour of individuals, households, groups who buy goods and services for personal consumption.
Cultural factors exert the broadest and deepest influence on consumer behaviour. Marketers need to understand the role played by the: culture, subculture, social class
Credibility
Perceived expertise
someone who is knowledgeable in the topic
Speak confidently and straightforward and fast
Start the talk with the message that the audiences are agree with
Perceived trustworthiness
Believing that the communicator is not attempting to persuade them.
Arguing against their own self-interest
Attractiveness and likability
Message content/tone
Low fear = irrelevance, low motivation
Low fear doesn’t spell out harm’s consequences
High fear = high anxiety and defensive
Avoidance
Decline in attention to message
Moderate = generally effective
The four functions of management: Planning: Setting objectives and determining how to accomplish them.
Organising Implementation phase: grouping and assigning task, allocating resources and coordinating.
Leading: Influencing others to do their best work for the organisation.
Controlling: Measuring performance against desired result
Types of managers: Top managers: Top of the hierarchy, responsible for the whole organisation. Middle managers: Responsible for business units and departments (Area manager)First-line managers :Responsible for production of goods and services. Smaller work groups. Managerial skills
Technical skills: The ability to apply expertise and perform a special task. E.g., master in method
Human Skills: The ability to work well with other people through other people. E.g., emotional intelligence.
Conceptual skills: The ability to see the organisation as a whole and the relationship between parts to think analytically and see the big picture. E.g., breaking down problems seeing the relationships between parts.
Types of Decisions: Programmed: Decisions that are made in routine, repetitive, well-structured situations. Situations that have occurred often enough to enable rules to be developed and applied in the future.
Non-Programmed: Decisions made in response to a situation that is unique, poorly defined, and largely unstructured and have important consequences.
1: Identify and Define the problem
Common mistakes when identify problems are:
Dysfunctional responses such as complacency (we are OK!) or defensive avoidance (deny or avoid the importance of danger)
Common mistakes when defining are:
Choosing the wrong problem – deal with most important problem first, and don’t focus on symptoms
Poorly defining the problem e.g. too narrow or too broad
2: Generate and Evaluate solutions:
Generate possible solutions that will respond to the needs of the situation and correct the underlying causesOne approach is Brainstorming – free wheeling and building on one another's ideas, without criticism Cost benefit analysis (see readings)
Common error is selecting a particular solution to quickly, The key problem is that searching for alternatives costs time and money. However in actual practice, the great majority of managers fail to search for enough viable alternatives
Or not getting past this stage! (Again paralysis by over-analysis)
3: Choose a solution:
Choosing the most promising of several alternative courses of action
Non- programmed decisions
Typically an alternative with the least amount of risk and uncertainly
Some intuition and experience used here
Risk propensity – the willingness to undertake risk with the opportunity of gaining an increased pay-off
Behavioural influences on decision making:
The challenge is to recognise common decision-making biases - for example:
Representativeness: People can be over influenced by stereotypes
Availability: Recall ability of similar instances
Framing: People make decisions based on how the problem is presented to them.
Week 2: Leadership & Motivation
Power Theory:
Power: The potential ability to influence the behavior of others
- Influence: The effect that a person’s actions have on the attitudes, values, beliefs or behavior of others.
Strengths: Natural talents and abilities that have been supported and reinforced with learned knowledge and skills
Effective leadership not about having the ‘right’ traits; it’s about recognising, developing and applying strengths
- Some traits are important (e.g., drive, integrity, cognitive ability), but having these traits doesn’t necessarily make leaders effective
Two dimensions of leadership style:
Concern for production vs. Concern for people
Situational leadership model:
Leaders adjust their styles depending on the readiness of their followers to perform in a given situation.
Readiness — how able, willing and confident followers are in performing tasks.
Servant leadership:
A servant leader transcends self-interest to serve others, the organisation, and society
They give ideas, recognition, credit for accomplishments, etc. to others, for the good of their employees and the organisation
Authentic leadership:
Individuals who know and understand themselves, act consistently with their ethical values
Employees know what the leader stands for
Creates trust
Empower and inspire others with openness and authenticity
TAKE HOME MESSAGES:
Leaders use power to influence others
Soft sources of power create engagement
Although certain traits an behaviours are important for leaders, leaders adjust their leadership style to the situation à contingency approach
Servant leaders give to others for the good of organisation/people
Authentic leaders act according to their values
What is motivation?
Set of forces that initiates, directs and makes people persist in their efforts to accomplish a goal
Ability x motivation = performance
A highly motivated workforce is indispensable to the achievements of sustained high-performance results
Motivation continuum
According to self-determination theory (Deci & Ryan), motivation lies on a continuum of self-determination from intrinsic motivation to extrinsic motivation
Those intrinsically motivated do things of e.g. interest and satisfaction à perform better.
Those extrinsically motivated do things because of e.g. rewards and punishment
Maslow’s hierarchy of needs theory:
Needs are physiological or phycological deficiencies a person feels the compulsion to satisfy
In short, We want what we don’t have.
Deficit principle:
A satisfied need is not a motivator behaviour, people act to satisfy ‘deprived’ needs, those for which a satisfaction ‘deficit’ exists.
Progression principle:
The five needs exist in a hierarchy of ‘prepotency’ a need at any level only becomes activated once the next lower level need has become satisfied
What are the managerial implications?
Employees need a change
Once a lower-level needs are satisfied, other things become important
Employees on different levels should be treated differently
Criticism of theory:
Research has found only little consistent support
For example, the more a need is met, the more important it can become
Goal setting theory:
Motivation can be increased and performances enhanced by setting specific an challenging goals and giving them timely feedback.
Challenging and specific goals are more likely to foster success.
Accepted goals are goals that are agreed on by yourself or your employers that can help propel to success
Feedback is critical to know you are on the right path
Making progress toward goals is key to motivation
Implications for management?
Use specific and challenging goals to keep people focused and motivated
Have employees participate in setting goals and determining how to achieve them
Give employees regular feedback on their progress
Equity theory
Based on the principle of social comparison
People are motivated to seek social equity in the rewards they expect for performance
Me < other = under rewarded
Me = other = equity
Me > other = over rewarded
Implications for management
Look for and correct inequities – two way communication to understand the perception of (in)equity
Ensure decision-making processes are fair
Distributive justice: outcomes fairly distributed
Procedural justice: fairness of procedures for outcome allocation
TAKE HOME NOTES:
Hierarchy of needs: We want what we don’t have
Goal setting: goals work best when challenging and specific with regular feedback
Equity theory: people are motivated to seek social equity in the rewards they expect for performance
Week 3:
Mission: A unique declaration of the basic purpose & scope
How do we see ourselves?
Goals: a desired future circumstance or condition an organisation (or individuals) attempts to realise
Where are we going?
Plans: blueprints for goal achievement and resource allocation – schedules, tasks, actions
How are we going to get there?
The concept of Planning usually incorporates all three
i.e. How do we see ourselves? Where are we going? How are we going to get there?
Because goals define desired outcomes for organisations (or individuals), they also serve as performance criteria
They provide a standard of assessment : e.g. 15% growth, a B in our course (which also links into the control function in next weeks topic)
The overall planning process prevents managers from thinking merely in terms of day-to-day activities
Organisation theory’s: mission statement:- corporate-departmental-operational
Approach to planning process:
Start with the Mission statement
Define your goals (objective)
Determine where you stand in relation to the goals (strengths and weaknesses)
Develop premises regarding future conditions (i.e. alternative scenarios)
Analyse and choose among plan alternatives
Implement the plan and evaluate results
Mission statement: A unique broad declaration of the basic purpose and scope of the organisation that distinguishes it from others
Note: personal mission statements are also common
It is usually a statement of rationale for existence, shared goals. core values, and philosophies
A written mission statement can be anything from a few sentences to several pages
The reason for an organisation’s existence
Good mission statements identify:
Customers (what market are we in?)
Products and/or services (what do we produce?)
Location (where do we operate?)
Underlying philosophy (what kind of difference do
we want to make in the world?)An important test of the mission is how well it serves the organisation’s stakeholders
Smart Goals.
Single-Use Plans
Plans that are developed to achieve a set of goals that are unlikely to be repeated in the future
Standing Plans
Ongoing plans used to provide guidance for tasks performed repeatedly within the organisation
Stratergy: Strategic thinking; In essence it means taking a long-term view
and to see the big picture‘Strategic thinking and planning’ positively affect an organisation’s performance and financial success
Strategic thinking
should happen at all
levels of an organisationstrategic management?
It is the set of decisions and actions used to formulate and implement strategies that will provide an organisation with competitive advantage* in its environment
Strategic Management involves an explicit strategy which is:
An action plan providing long-term direction and guiding the use of its resources to accomplish organisational goals
‘A pattern in a stream of decisions’ (Mintzberg)
Competitive advantage means operating in a successful way that is difficult for competitors to imitate
It is what sets the organisation apart from others
Sustainable competitive advantage is consistently dealing with market and environmental
forces better than competitors
Porter’s Generic Strategies model
Generic strategies for gaining competitive advantage:
Differentiation strategy
Cost leadership strategy
Focused differentiation strategy
Focused cost leadership strategy
Product life cycle: Introduction and growth stages
Use differentiation and prospector strategies
(e.g. promoting and gaining a market presence)Maturity stage
Uses focus and/or cost leadership strategies
(e.g. keeping customers and production efficiencies)
Decline stage
Uses defender or analyser strategies
(e.g. ‘last iceman’, exit strategies)
Week 4:
Control: The process through which managers regulate organisational activities to make them consistent with established in plans and standards of performance:
Requires information on standards and actual performance (e.g., number of research publications, Hours of teaching)
Regulates the quality of product (e.g., High quality research, manufacturing- products without defects)
Encourages wanted behaviours and discourages unwanted behaviours of individuals (e.g., research benefiting NZ, student-centred teaching practice)
Help managers avoid problems: Play six important roles:
Coping with uncertainty: monitoring specific activities and reacting quickly to significant changes (e.g. community testing-COVID)
Detecting undesirable irregularities: product defects, cost overruns, rising staff turnover
To reduce costs, increase productivity or add value: by eliminating waste, increasing outputs
Alerting managers to possible opportunities: highlighting better than expected situations
Handling complex situations: enhancing coordination within large organisations
Decentralising authority: encourage controlled lower level decision-making
Barriers to control success:
Barriers to a successful control system are:
Too much control: try to exert too much control (e.g., Bureaucratic organisations)
Too little employee participation: involving employees can bring legitimacy to control process
Overemphasis on means instead of ends: can lead to ‘game playing’ or ‘beating the system’
Overemphasis on paperwork: lead to too much focus on quantification
Overemphasis on one instead of multiple approaches: one indicator may not be enough
External environment…
Control process..
Strategic level | Business plan projections on loan disbursements for 5 years | Senior management revisiting the business plan yearly basis |
Departmental level | Number of loans to be disbursed each region (quarterly) | Regional managers comparing target vs actual loans disbursed (quarterly) |
Operational level | Each branch having monthly target of loan disbursement | Branch managers monitoring and taking actions for loan disbursement |
Week 5 HRM:
HRM = ensuring the organisation has the right number of people, with the required knowledge, skills, abilities and competencies, at an affordable cost, who are motivated and committed to achieving the strategic aims of the organisation. Motivation is a set of forces that initiates, directs and makes people persist in their efforts to accomplish their goal
Recruiting
Activities to develop a pool of qualified candidates to apply for a job.
Recruitment can be done internally (within the organisation) and/or externally (outside the organisation).
Recruitment should be a mutual process between the employers and the applicant.
Applicant reactions are important
Realistic Job Preview (RJP):
Not just ‘selling’ the best aspects of a job, but…
Providing job candidates with all pertinent information about a job and the organisation.
E.g. irregular hours, travel, etc.
Leads to higher retention, satisfaction.
Structured (asking the same questions from all applicants) & unstructured interviews.
Unstructured interviews not very valid. Cannot make comparisons between candidates. Structured interviews often include behaviour questions.
Reflection of past experience
STAR technique:
Explain the Situation – Task - Action - Result
Week 8: Managing Diversity
Chiefly leadership reading; Managing diversity parts 1 and 2 lecture slides
Terms:
Māori customary patterns:
Chiefly (rangatira) mana (authority, power)
Mana acquired through:
Spirituality
Inherited
Acquired through achievement or weakened.
Ability to provide food (measure of wealth) own people;
Visitors (hospitality)
Rāhui (restrictions of food)
Judge others interest
Extending tribal strength
Slaves through conquest
Political marriages
Extending land-use rights creating obligations
Gift exchanges
Mana whenua
Power associated with the possession of land and ability to provide food for people.
Re-discovery of Aotearoa and New Zealand
Commerce and trade
Trade and Christianity advanced to NZ
1810s Church missionaries
Commercial activity:
timber, flax, shore whaling, ship building, trading
1830s semi-permanent trader-settlers
British and American sperm whalers
Whaling major industry financed by Sydney merchants.
Sydney and Hobart sealing gangs.
Māori and Pākehā came together in commerce.
Continued issues and tensions over resources and lands
He Whakaputanga (1835)
Declaration of Independence
Land purchases by New South Wales buyers, dubious legality
Prevent other countries - France and America from making deals
34 northern chiefs signed (52 by 1839)
Confederation of United Tribes
Ngapuhi
King William
Populations just before 1840:
90,000 – 200,000 Māori
2,000 permanent settlers (1400 North, 600 South)
Te Tiriti o Waitangi (1840)
The Treaty of Waitangi
An agreement drawn up between
representatives of the British Crown
representatives of Māori iwi and hapū
Bay of Islands where it was first signed on 6 February 1840
Signed in a number of other locations around the country in the following months
The Treaty of Waitangi has two texts
The Māori version is not an exact translation of the English.
Treaty principles (Crown and Māori)
The principle of partnership and consultation:
working together
in good faith
providing for Māori autonomy
framework for two peoples to live in one country
The principle of active protection:
of Māori by the Crown
of Māori interests
of possessions so that tikanga (culture and protocols) and taonga (treasures, e.g. language) are valued.
The principle of exchange
the right of the Crown to govern for the right of Maori to retain their full tribal authority and control over lands and possessions
Prejudice
different = deficient
Discrimination
acting on a prejudice
Stereotypes
assumptions about a group
In NZ the pay gap is static: women $30.15 vs men $33.00
Pākehā man ($1):
Pākehā women (89c);
Māori or Asian man (86c);
Asian women (83c);
Pasifika man or Māori women (81c);
Pasifika women (75c); missing out on $488,000 (40yr)
Organisations are places where good relationships and exchanges matter
As managers:
question your prejudices
engage in conversations to understand people’s differences and needs
value differences
consider what people need to do their jobs (equity)
Week 11 operations:
The tools and techniques used to ensure that goods and services are delivered successfully to customers
Is the set of processes that transforms inputs into outputs
Manufacturing org:
Produce physical goods e.g. furniture
Good can be stored for later consumption e.g. chocolate bars
Production process
removed from customerCommonly have
standardised outputs
Service org:
Produce non-physical good e.g. university study
Simultaneous production and consumption e.g. haircut
Consumer participates
in production process
Commonly have customised outputs
Process:
A process is any activity or group of activities that takes one or more inputs, transformations and adds value to them
And provides one or more outputs for its customers
Productivity formula:
Productivity = Outputs/Inputs
Onions cut / Hour of labour
Output / Input
2,000 / 8 hours = 250 onions/hr
Competitive Advantage : allows an organisation to deal with market and environmental forces better than competitors
OM Product & Services Strategy options are differentiation, low cost, rapid response
Process: activities that takes one or more inputs, transformations and adds value to them
Productivity: what is it and how is it calculated?
Value Chain Management: logistics and supply chain
Negotiate with many suppliers
Long term ‘partnering’
Vertical integration
Week 12; marketing
Create value for customers and build customer relationships
factors influence marketing strategy
marketing/mix 4p's product,price,promotion, place
Place
Distribution
Making the offering available to the customer at the right time and place.
Logistics
Ensuring that products are in the right place at the right time in the right quantity
Consumer behaviour:
The analysis of the behaviour of individuals, households, groups who buy goods and services for personal consumption.
Cultural factors exert the broadest and deepest influence on consumer behaviour. Marketers need to understand the role played by the: culture, subculture, social class
Credibility
Perceived expertise
someone who is knowledgeable in the topic
Speak confidently and straightforward and fast
Start the talk with the message that the audiences are agree with
Perceived trustworthiness
Believing that the communicator is not attempting to persuade them.
Arguing against their own self-interest
Attractiveness and likability
Message content/tone
Low fear = irrelevance, low motivation
Low fear doesn’t spell out harm’s consequences
High fear = high anxiety and defensive
Avoidance
Decline in attention to message
Moderate = generally effective
The four functions of management: Planning: Setting objectives and determining how to accomplish them.
Organising Implementation phase: grouping and assigning task, allocating resources and coordinating.
Leading: Influencing others to do their best work for the organisation.
Controlling: Measuring performance against desired result
Types of managers: Top managers: Top of the hierarchy, responsible for the whole organisation. Middle managers: Responsible for business units and departments (Area manager)First-line managers :Responsible for production of goods and services. Smaller work groups. Managerial skills
Technical skills: The ability to apply expertise and perform a special task. E.g., master in method
Human Skills: The ability to work well with other people through other people. E.g., emotional intelligence.
Conceptual skills: The ability to see the organisation as a whole and the relationship between parts to think analytically and see the big picture. E.g., breaking down problems seeing the relationships between parts.
Types of Decisions: Programmed: Decisions that are made in routine, repetitive, well-structured situations. Situations that have occurred often enough to enable rules to be developed and applied in the future.
Non-Programmed: Decisions made in response to a situation that is unique, poorly defined, and largely unstructured and have important consequences.
1: Identify and Define the problem
Common mistakes when identify problems are:
Dysfunctional responses such as complacency (we are OK!) or defensive avoidance (deny or avoid the importance of danger)
Common mistakes when defining are:
Choosing the wrong problem – deal with most important problem first, and don’t focus on symptoms
Poorly defining the problem e.g. too narrow or too broad
2: Generate and Evaluate solutions:
Generate possible solutions that will respond to the needs of the situation and correct the underlying causesOne approach is Brainstorming – free wheeling and building on one another's ideas, without criticism Cost benefit analysis (see readings)
Common error is selecting a particular solution to quickly, The key problem is that searching for alternatives costs time and money. However in actual practice, the great majority of managers fail to search for enough viable alternatives
Or not getting past this stage! (Again paralysis by over-analysis)
3: Choose a solution:
Choosing the most promising of several alternative courses of action
Non- programmed decisions
Typically an alternative with the least amount of risk and uncertainly
Some intuition and experience used here
Risk propensity – the willingness to undertake risk with the opportunity of gaining an increased pay-off
Behavioural influences on decision making:
The challenge is to recognise common decision-making biases - for example:
Representativeness: People can be over influenced by stereotypes
Availability: Recall ability of similar instances
Framing: People make decisions based on how the problem is presented to them.
Week 2: Leadership & Motivation
Power Theory:
Power: The potential ability to influence the behavior of others
- Influence: The effect that a person’s actions have on the attitudes, values, beliefs or behavior of others.
Strengths: Natural talents and abilities that have been supported and reinforced with learned knowledge and skills
Effective leadership not about having the ‘right’ traits; it’s about recognising, developing and applying strengths
- Some traits are important (e.g., drive, integrity, cognitive ability), but having these traits doesn’t necessarily make leaders effective
Two dimensions of leadership style:
Concern for production vs. Concern for people
Situational leadership model:
Leaders adjust their styles depending on the readiness of their followers to perform in a given situation.
Readiness — how able, willing and confident followers are in performing tasks.
Servant leadership:
A servant leader transcends self-interest to serve others, the organisation, and society
They give ideas, recognition, credit for accomplishments, etc. to others, for the good of their employees and the organisation
Authentic leadership:
Individuals who know and understand themselves, act consistently with their ethical values
Employees know what the leader stands for
Creates trust
Empower and inspire others with openness and authenticity
TAKE HOME MESSAGES:
Leaders use power to influence others
Soft sources of power create engagement
Although certain traits an behaviours are important for leaders, leaders adjust their leadership style to the situation à contingency approach
Servant leaders give to others for the good of organisation/people
Authentic leaders act according to their values
What is motivation?
Set of forces that initiates, directs and makes people persist in their efforts to accomplish a goal
Ability x motivation = performance
A highly motivated workforce is indispensable to the achievements of sustained high-performance results
Motivation continuum
According to self-determination theory (Deci & Ryan), motivation lies on a continuum of self-determination from intrinsic motivation to extrinsic motivation
Those intrinsically motivated do things of e.g. interest and satisfaction à perform better.
Those extrinsically motivated do things because of e.g. rewards and punishment
Maslow’s hierarchy of needs theory:
Needs are physiological or phycological deficiencies a person feels the compulsion to satisfy
In short, We want what we don’t have.
Deficit principle:
A satisfied need is not a motivator behaviour, people act to satisfy ‘deprived’ needs, those for which a satisfaction ‘deficit’ exists.
Progression principle:
The five needs exist in a hierarchy of ‘prepotency’ a need at any level only becomes activated once the next lower level need has become satisfied
What are the managerial implications?
Employees need a change
Once a lower-level needs are satisfied, other things become important
Employees on different levels should be treated differently
Criticism of theory:
Research has found only little consistent support
For example, the more a need is met, the more important it can become
Goal setting theory:
Motivation can be increased and performances enhanced by setting specific an challenging goals and giving them timely feedback.
Challenging and specific goals are more likely to foster success.
Accepted goals are goals that are agreed on by yourself or your employers that can help propel to success
Feedback is critical to know you are on the right path
Making progress toward goals is key to motivation
Implications for management?
Use specific and challenging goals to keep people focused and motivated
Have employees participate in setting goals and determining how to achieve them
Give employees regular feedback on their progress
Equity theory
Based on the principle of social comparison
People are motivated to seek social equity in the rewards they expect for performance
Me < other = under rewarded
Me = other = equity
Me > other = over rewarded
Implications for management
Look for and correct inequities – two way communication to understand the perception of (in)equity
Ensure decision-making processes are fair
Distributive justice: outcomes fairly distributed
Procedural justice: fairness of procedures for outcome allocation
TAKE HOME NOTES:
Hierarchy of needs: We want what we don’t have
Goal setting: goals work best when challenging and specific with regular feedback
Equity theory: people are motivated to seek social equity in the rewards they expect for performance
Week 3:
Mission: A unique declaration of the basic purpose & scope
How do we see ourselves?
Goals: a desired future circumstance or condition an organisation (or individuals) attempts to realise
Where are we going?
Plans: blueprints for goal achievement and resource allocation – schedules, tasks, actions
How are we going to get there?
The concept of Planning usually incorporates all three
i.e. How do we see ourselves? Where are we going? How are we going to get there?
Because goals define desired outcomes for organisations (or individuals), they also serve as performance criteria
They provide a standard of assessment : e.g. 15% growth, a B in our course (which also links into the control function in next weeks topic)
The overall planning process prevents managers from thinking merely in terms of day-to-day activities
Organisation theory’s: mission statement:- corporate-departmental-operational
Approach to planning process:
Start with the Mission statement
Define your goals (objective)
Determine where you stand in relation to the goals (strengths and weaknesses)
Develop premises regarding future conditions (i.e. alternative scenarios)
Analyse and choose among plan alternatives
Implement the plan and evaluate results
Mission statement: A unique broad declaration of the basic purpose and scope of the organisation that distinguishes it from others
Note: personal mission statements are also common
It is usually a statement of rationale for existence, shared goals. core values, and philosophies
A written mission statement can be anything from a few sentences to several pages
The reason for an organisation’s existence
Good mission statements identify:
Customers (what market are we in?)
Products and/or services (what do we produce?)
Location (where do we operate?)
Underlying philosophy (what kind of difference do
we want to make in the world?)An important test of the mission is how well it serves the organisation’s stakeholders
Smart Goals.
Single-Use Plans
Plans that are developed to achieve a set of goals that are unlikely to be repeated in the future
Standing Plans
Ongoing plans used to provide guidance for tasks performed repeatedly within the organisation
Stratergy: Strategic thinking; In essence it means taking a long-term view
and to see the big picture‘Strategic thinking and planning’ positively affect an organisation’s performance and financial success
Strategic thinking
should happen at all
levels of an organisationstrategic management?
It is the set of decisions and actions used to formulate and implement strategies that will provide an organisation with competitive advantage* in its environment
Strategic Management involves an explicit strategy which is:
An action plan providing long-term direction and guiding the use of its resources to accomplish organisational goals
‘A pattern in a stream of decisions’ (Mintzberg)
Competitive advantage means operating in a successful way that is difficult for competitors to imitate
It is what sets the organisation apart from others
Sustainable competitive advantage is consistently dealing with market and environmental
forces better than competitors
Porter’s Generic Strategies model
Generic strategies for gaining competitive advantage:
Differentiation strategy
Cost leadership strategy
Focused differentiation strategy
Focused cost leadership strategy
Product life cycle: Introduction and growth stages
Use differentiation and prospector strategies
(e.g. promoting and gaining a market presence)Maturity stage
Uses focus and/or cost leadership strategies
(e.g. keeping customers and production efficiencies)
Decline stage
Uses defender or analyser strategies
(e.g. ‘last iceman’, exit strategies)
Week 4:
Control: The process through which managers regulate organisational activities to make them consistent with established in plans and standards of performance:
Requires information on standards and actual performance (e.g., number of research publications, Hours of teaching)
Regulates the quality of product (e.g., High quality research, manufacturing- products without defects)
Encourages wanted behaviours and discourages unwanted behaviours of individuals (e.g., research benefiting NZ, student-centred teaching practice)
Help managers avoid problems: Play six important roles:
Coping with uncertainty: monitoring specific activities and reacting quickly to significant changes (e.g. community testing-COVID)
Detecting undesirable irregularities: product defects, cost overruns, rising staff turnover
To reduce costs, increase productivity or add value: by eliminating waste, increasing outputs
Alerting managers to possible opportunities: highlighting better than expected situations
Handling complex situations: enhancing coordination within large organisations
Decentralising authority: encourage controlled lower level decision-making
Barriers to control success:
Barriers to a successful control system are:
Too much control: try to exert too much control (e.g., Bureaucratic organisations)
Too little employee participation: involving employees can bring legitimacy to control process
Overemphasis on means instead of ends: can lead to ‘game playing’ or ‘beating the system’
Overemphasis on paperwork: lead to too much focus on quantification
Overemphasis on one instead of multiple approaches: one indicator may not be enough
External environment…
Control process..
Strategic level | Business plan projections on loan disbursements for 5 years | Senior management revisiting the business plan yearly basis |
Departmental level | Number of loans to be disbursed each region (quarterly) | Regional managers comparing target vs actual loans disbursed (quarterly) |
Operational level | Each branch having monthly target of loan disbursement | Branch managers monitoring and taking actions for loan disbursement |
Week 5 HRM:
HRM = ensuring the organisation has the right number of people, with the required knowledge, skills, abilities and competencies, at an affordable cost, who are motivated and committed to achieving the strategic aims of the organisation. Motivation is a set of forces that initiates, directs and makes people persist in their efforts to accomplish their goal
Recruiting
Activities to develop a pool of qualified candidates to apply for a job.
Recruitment can be done internally (within the organisation) and/or externally (outside the organisation).
Recruitment should be a mutual process between the employers and the applicant.
Applicant reactions are important
Realistic Job Preview (RJP):
Not just ‘selling’ the best aspects of a job, but…
Providing job candidates with all pertinent information about a job and the organisation.
E.g. irregular hours, travel, etc.
Leads to higher retention, satisfaction.
Structured (asking the same questions from all applicants) & unstructured interviews.
Unstructured interviews not very valid. Cannot make comparisons between candidates. Structured interviews often include behaviour questions.
Reflection of past experience
STAR technique:
Explain the Situation – Task - Action - Result
Week 8: Managing Diversity
Chiefly leadership reading; Managing diversity parts 1 and 2 lecture slides
Terms:
Māori customary patterns:
Chiefly (rangatira) mana (authority, power)
Mana acquired through:
Spirituality
Inherited
Acquired through achievement or weakened.
Ability to provide food (measure of wealth) own people;
Visitors (hospitality)
Rāhui (restrictions of food)
Judge others interest
Extending tribal strength
Slaves through conquest
Political marriages
Extending land-use rights creating obligations
Gift exchanges
Mana whenua
Power associated with the possession of land and ability to provide food for people.
Re-discovery of Aotearoa and New Zealand
Commerce and trade
Trade and Christianity advanced to NZ
1810s Church missionaries
Commercial activity:
timber, flax, shore whaling, ship building, trading
1830s semi-permanent trader-settlers
British and American sperm whalers
Whaling major industry financed by Sydney merchants.
Sydney and Hobart sealing gangs.
Māori and Pākehā came together in commerce.
Continued issues and tensions over resources and lands
He Whakaputanga (1835)
Declaration of Independence
Land purchases by New South Wales buyers, dubious legality
Prevent other countries - France and America from making deals
34 northern chiefs signed (52 by 1839)
Confederation of United Tribes
Ngapuhi
King William
Populations just before 1840:
90,000 – 200,000 Māori
2,000 permanent settlers (1400 North, 600 South)
Te Tiriti o Waitangi (1840)
The Treaty of Waitangi
An agreement drawn up between
representatives of the British Crown
representatives of Māori iwi and hapū
Bay of Islands where it was first signed on 6 February 1840
Signed in a number of other locations around the country in the following months
The Treaty of Waitangi has two texts
The Māori version is not an exact translation of the English.
Treaty principles (Crown and Māori)
The principle of partnership and consultation:
working together
in good faith
providing for Māori autonomy
framework for two peoples to live in one country
The principle of active protection:
of Māori by the Crown
of Māori interests
of possessions so that tikanga (culture and protocols) and taonga (treasures, e.g. language) are valued.
The principle of exchange
the right of the Crown to govern for the right of Maori to retain their full tribal authority and control over lands and possessions
Prejudice
different = deficient
Discrimination
acting on a prejudice
Stereotypes
assumptions about a group
In NZ the pay gap is static: women $30.15 vs men $33.00
Pākehā man ($1):
Pākehā women (89c);
Māori or Asian man (86c);
Asian women (83c);
Pasifika man or Māori women (81c);
Pasifika women (75c); missing out on $488,000 (40yr)
Organisations are places where good relationships and exchanges matter
As managers:
question your prejudices
engage in conversations to understand people’s differences and needs
value differences
consider what people need to do their jobs (equity)
Week 11 operations:
The tools and techniques used to ensure that goods and services are delivered successfully to customers
Is the set of processes that transforms inputs into outputs
Manufacturing org:
Produce physical goods e.g. furniture
Good can be stored for later consumption e.g. chocolate bars
Production process
removed from customerCommonly have
standardised outputs
Service org:
Produce non-physical good e.g. university study
Simultaneous production and consumption e.g. haircut
Consumer participates
in production process
Commonly have customised outputs
Process:
A process is any activity or group of activities that takes one or more inputs, transformations and adds value to them
And provides one or more outputs for its customers
Productivity formula:
Productivity = Outputs/Inputs
Onions cut / Hour of labour
Output / Input
2,000 / 8 hours = 250 onions/hr
Competitive Advantage : allows an organisation to deal with market and environmental forces better than competitors
OM Product & Services Strategy options are differentiation, low cost, rapid response
Process: activities that takes one or more inputs, transformations and adds value to them
Productivity: what is it and how is it calculated?
Value Chain Management: logistics and supply chain
Negotiate with many suppliers
Long term ‘partnering’
Vertical integration
Week 12; marketing
Create value for customers and build customer relationships
factors influence marketing strategy
marketing/mix 4p's product,price,promotion, place
Place
Distribution
Making the offering available to the customer at the right time and place.
Logistics
Ensuring that products are in the right place at the right time in the right quantity
Consumer behaviour:
The analysis of the behaviour of individuals, households, groups who buy goods and services for personal consumption.
Cultural factors exert the broadest and deepest influence on consumer behaviour. Marketers need to understand the role played by the: culture, subculture, social class
Credibility
Perceived expertise
someone who is knowledgeable in the topic
Speak confidently and straightforward and fast
Start the talk with the message that the audiences are agree with
Perceived trustworthiness
Believing that the communicator is not attempting to persuade them.
Arguing against their own self-interest
Attractiveness and likability
Message content/tone
Low fear = irrelevance, low motivation
Low fear doesn’t spell out harm’s consequences
High fear = high anxiety and defensive
Avoidance
Decline in attention to message
Moderate = generally effective
