YS

MG11 Lecture 9 v2024.1

Introduction to Business Organisations & Strategy

  • Lecture #9

  • Focus areas include:

    • Organisational Design, Structure, and Dynamics

    • Management Roles & Skills

    • Leading the Organisation through Organisational Change

  • Presented by Prof. Fabrice Léger

Lecture Schedule

  1. Introduction to Business Models

  2. Entrepreneurship and Start-ups

  3. Conducting an Industry Analysis

    • Structure, 5-forces, and Competitive Environment

  4. Resources and Capabilities

    • Introduction to the Resource-based view of organisations

  5. Developing Competitive Advantages

  6. Developing a Business through a Successful Product Portfolio Strategy

    • BCG, Ansoff and McKinsey Matrix

  7. Market Types, Differentiation, and (Re)positioning

  8. Innovation in the Organisation

  9. Organisational Design, Structure, and Dynamics

    • Management Roles & Skills

    • Leading the Organisation through Organisational Change

  10. Managing the Human Capital within and outside of the organisation

  11. Global Market Expansion

Part 1: Management

Learning Objectives

  • Importance of management and three vital management roles.

  • Describe the planning function, strategic planning process, and organising function.

  • Differentiate management levels: top, middle, and first-line.

  • Discuss leading function, leadership style, and organizational culture.

  • Explain controlling function and the control cycle.

  • Identify four important types of managerial skills.

Management Defined

  • Management: Process of planning, organizing, leading, and controlling to meet organizational goals.

Manager’s Roles

  • Managerial Role: Behavioral patterns and activities involved in carrying out management functions.

    • Interpersonal Role: Leadership, networking, fostering relationships.

    • Informational Role: Gathering and sharing information.

    • Decisional Role: Making decisions, often on the spot.

The Planning Function

  • Planning: Establishing objectives and goals; determining ways to accomplish them.

    • Strategic Plans: Actions and resource allocations for strategic goals.

  • Timeframes: Typically 2-5 years, developed by top managers.

Strategic Planning Process

  1. Define mission, vision, and values.

  2. Perform SWOT analysis.

  3. Establish long-term goals and short-term objectives.

  4. Develop action plans and allocate resources.

  5. Set performance standards and forecasts.

  6. Analyze competition and adjust.

Mission, Vision, Values

  • Mission Statement: Why an organization exists.

  • Vision Statement: Aspirations of a company.

  • Values Statement: Principles guiding decisions.

SWOT Analysis

  • SWOT: Comparison between internal capabilities and external environment.

    • Benchmarking: Measuring performance versus competitors.

Forecasting

  • Quantitative Forecasts: Based on historical data.

  • Qualitative Forecasts: Based on judgments.

Analyzing Competition

  • Understand market positions through quality and pricing.

Establishing Goals and Objectives

  • Goals: Broad, long-range targets.

  • Objectives: Specific, short-range targets.

  • Make goals SMART: Specific, Measurable, Attainable, Relevant, Time-limited.

Developing Action Plans

  • Tactical Plans: Specific actions to meet objectives.

  • Operational Plans: Detail day-to-day operations.

The Organizing Function

Organizing Defined

  • Organizing: Arranging resources to implement plans.

Management Pyramid

  • Hierarchy of management: Top, Middle, First-line Managers.

The Management Pyramid Explained

  • Top Managers: Set strategic goals and high responsibility level.

  • Middle Managers: Develop plans to implement goals.

  • First-line Managers: Supervise operating employees.

The Leading Function

  • Leading: Guiding and motivating people towards goals.

  • Emotional Intelligence: Understanding one's own and others' emotions.

  • Cognitive Intelligence: Problem-solving and reasoning skills.

  • Social Intelligence: Navigating social dynamics.

Leadership Styles

  1. Autocratic Leadership: Centralized decision-making.

  2. Democratic Leadership: Participative decision-making.

  3. Laissez-faire Leadership: Minimal managerial involvement.

Coaching and Mentoring

  • Coaching: Helping employees reach their potential.

  • Mentoring: Guidance from experienced colleagues.

The Controlling Function

  • Controlling: Monitoring progress against goals and making adjustments.

  • Control Cycle: Steps to measure and evaluate performance.

  • Benchmarking: Comparison with industry standards.

Essential Management Skills

  • Interpersonal Skills: Understanding and communicating effectively.

  • Technical Skills: Knowledge required for specific tasks.

  • Administrative Skills: Skills in data analysis, planning, and organization.

  • Conceptual Skills: Understanding the organization as a whole.

  • Decision-making Skills: Identifying problems and selecting solutions.

Part 2: Organisational Structures

Learnings Objectives

  • Major decisions in designing organizational structure.

  • Types of organizational structures definition.

  • Unstructured organizations: Benefits and challenges.

Designing an Effective Organization Structure

  • Organization Structure: Framework for responsibilities and accountability.

  • Agile Organization: Rapid response to changes and customer needs.

  • Core Competencies: Vital business activities.

Defining the Chain of Command

  • Chain of Command: Authority flow in management.

  • Span of Management: The number of employees under a manager.

  • Centralization vs. Decentralization: Differences in authority distribution.

Types of Organizational Structure

  1. Functional Structure: Groups workers by skill.

  2. Divisional Structure: Groups by product, market, or location.

  3. Matrix Structure: Combines functional and divisional approaches.

  4. Network Structure: Connects firms electronically for tasks.

Part 3: Organisational Culture

Understanding Organizational Culture

  • Set of shared values and norms that guide behavior.

  • Dominant Culture: Core values held by majority.

  • Subcultures: Smaller cultures within the organization.

Functions of Culture

  1. Defines boundaries between organizations.

  2. Provides a sense of identity.

  3. Facilitates commitment.

  4. Acts as a control mechanism.

Maintaining Culture

  • Selection: Fit of candidates to culture.

  • Top Management: Senior leaders set norms.

  • Socialization: New employee acclimatization.

Learning Culture

  • Importance of storytelling, rituals, and symbols in reinforcing values.

Challenges of Change in Culture

  • Barriers to change, diversity, and mergers.

  • Change resistance: Individual and organizational sources.

Managing Change

  1. Identify necessary changes.

  2. Assess forces for and against change.

  3. Choose an appropriate approach.

  4. Monitor and reinforce changes.

Case of Harley Davidson

  • Challenges faced: Aging consumer base, competition from lighter bikes, production quality drop.

  • Changes implemented based on benchmarking processes and focus on quality.

Conclusion

  • Prepare for discussions in the next face-to-face session. Focus on key concepts and questions posted.