Changing Nature of Organizations - Belief in human capital - uemlse of command b conLrol - Emphasis on teamwork - Pre-eminence of technology - Embrace of networking - Concern for work-life balance - Focus on speed Total quality management (TQM) (E. Deming) J manage with continuous improvement, product quality and customer satisfaction - quality as performance standard must be defect-free work - quality comes from defect prevention, not
Changing Nature of Organizations - Belief in human capital - uemlse of command b conLrol - Emphasis on teamwork - Pre-eminence of technology - Embrace of networking - Concern for work-life balance - Focus on speed Total quality management (TQM) (E. Deming) J manage with continuous improvement, product quality and customer satisfaction - quality as performance standard must be defect-free work - quality comes from defect prevention, not
Changing Nature of Organizations - Belief in human capital - uemlse of command b conLrol - Emphasis on teamwork - Pre-eminence of technology - Embrace of networking - Concern for work-life balance - Focus on speed Total quality management (TQM) (E. Deming) J manage with continuous improvement, product quality and customer satisfaction - quality as performance standard must be defect-free work - quality comes from defect prevention, not
Intellectual capital J collective brainpower/share knowledge of workforce Knowledge worker J someone whose mind is critical asset to employers, add value to organization through intellect Globalization J worldwide interdependence of resource flows, product markets & business competitions Workforce diversity J differences in gender, race, age, ethnicity, able-bodiness, religious affiliation & sexual orientation among workers Prejudice J display of negative, irrational attitudes toward women & minorities Discrimination J actively denying women & minorities full benefits of organizational membership Glass ceiling effect J invisible barrier limiting career advancement of women & minorities Ethics J seL moral sLandards of whaLs good b rlghL ln ones behavlour Corporate governance J oversight of companys managemenL by BoD BoD J inside (chosen from senior management), outside (from other organizations & positions external to organization) Organization J collection of people working together in division of labour to achieve common purpose Open system J organizations interact with their environment to transform resources into product outputs Productivity J quantity & quality of work performance, with resource utilization Performance effectiveness J output measure of task/goal accomplishment (quantity) Performance efficiency J input measure of resource costs associated with goal accomplishment (quality) Changing Nature of Organizations - Belief in human capital - uemlse of command b conLrol - Emphasis on teamwork - Pre-eminence of technology
- Embrace of networking - New workforce expectations - Concern for work-life balance - Focus on speed
Total quality management (TQM) (E. Deming) J manage with continuous improvement, product quality & customer satisfaction - Quality = conformance to standards - Quality saves money - Quality as performance standard must be defect-free work - Quality comes from defect prevention, not defect correction ISO Certification J indicates conformance with exact set of international quality standards Continuous Improvement J involves always searching for new ways to improve work quality & performance Quality circle J members meet periodically to discuss ways of improving quality of products/services Manager J person who supports & is responsible for work of others (long hours, intense pace, varied tasks) Levels of Managers Top Managers J guide performance of organization as whole or one of its major parts Middle managers J oversee work of large departments/divisions Project managers J coordinate complex projects with task deadlines Team leaders (supervisors) J report to middle managers & directly supervise non-managerial workers Types of Managers Line managers J dlrecLly conLrlbuLe Lo producLlon of organlzaLlons baslc goodsservices Staff managers J use special technical expertise to advice & support line workers Functional managers J responsible for one area of activity www.notesolution.com General Managers J responsible for complex multi-functional units Accountability J requirement to show performance resulLs Lo ones lmmedlaLe supervlsor Quality of work life J overall quality of human experiences in workplace Management Process (Functions) Management J process of planning, organizing, leading & controlling use of resources to accomplish performance goals Planning J setting objectives & determining what should be done to achieve them Organizing J assigning tasks, allocating resources & coordinating work activities to accomplish work Leading J inspiring people to work hard to achieve high performance Controlling J measuring performance & taking action to ensure desired results Lifelong learning J continuous learning from daily experiences Managerial Roles J Mintzberg Informational J exchanging & process info Interpersonal J interacting with people inside & outside work unit Decisional J using info to make decisions to solve problems or address opportunities Essential Managerial Skills J Katz Skill J ability to translate knowledge into action that results in desired performance Technical skill J to use expertise to perform task with proficiency Human skill J to work well in co-operation with others Emotional intelligence J ability to manage self & relationships effectively - Self-awareness - Self-regulation - Motivation - Empathy - Social skill Conceptual skill J to think analytically & solve complex problems Managerial competency J skill-based capability for high performance in management job (communication, teamwork, self- management, leadership, critical thinking, professionalism) Chapter 2 Management Past to Present Classical Management Approaches 1. Scientific Management (F. Taylor) J careful selection & training of workers, & supervisory support improving efficiency a. Develop for every job a science J rules of motion, standardized work implements, proper working conditions b. Carefully select workers with right abilities for job c. Carefully train workers to do job & give them proper incentives to co-operate d. Support workers by carefully planning their work Motion study (Gilbreths) J science of reducing task to basic physical motions 2. Administrative Principles Henri Fayol J duties: foresight, organization, command, coordination, control; & 14 principles: 1. Division of labour 2. Authority 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interests 7. Remuneration 8. Centralization 9. Scalar chain (line of authority) 10. Order 11. Equity 12. Personnel tenure 13. Initiative 14. Esprit de corps Scalar chain principle J clear, unbroken line of communication from top to bottom in organization Command principle J each person receive orders from only ONE boss Unity of Direction Principle J one person in charge of ALL activities that have same performance objective www.notesolution.com Mary Parker Follett J teamwork, collective responsibility 3. Bureaucracy (Weber) J rational & efficient form of organization founded on logic, order & legitimate authority - Clear division of labour - Clear hierarchy of authority - Formal rules & procedures - Impersonality - Careers based on merit Disadvantages: paperwork (red tape)
Behavioural Management Approaches Hawthorne studies J psychological factors; study with light Mayo J made workers feel important Hawthorne effect J tendency of persons singled out for special attention to perform as expected Human relations movement J managers using good human relations will achieve productivity Organizational behaviour J study of individuals & groups in organizations ,ZZ Theory of Human Needs J physiological9 safety 9 social9 esteem 9 self-actualization Needs J physiological/psychological deficiency that person wants to satisfy Deficit principle J satisfy need not motivator for behaviour Progression principle J need at any level only activated when previous level need is satisfied McCregors 1heory x b 1heory ? Theory X J assumes people dislike work, lack ambition, irresponsible, prefer to be led (command & control managers) Theory Y J assumes people willing to work, accept responsibility, self-directed & creative (participative managers) Self-fulfilling prophecy J occurs when person acLs ln ways LhaL conflrm anoLhers expecLaLlons Argyris J treat people positively & responsible like adults, highest productivity Quantitative Management Approaches Management science J use mathematical techniques to analyze & solve management problems System J collection of interrelated parts working together for purpose subsystem J smaller component of system Contingency thinking J tries to match management practices with situational demands Value chain J sequence of activities that transform raw materials into finished goods/services Theory Z J describes management emphasizing long-term employment, consensus & teamwork Learning organization J continuously changes & improves, using lessons of experience 21 st century managers J global strategist, master of technology, inspiring leader, model of ethical behaviour Chapter 4 Environment, Organizational Culture & Diversity Competitive advantage J allows organization deal with market & environmental forces better than its competitors, hard to copy General environment J composed of cultural, economic, legal-political, & educational conditions (PEST) Specific environment J people & groups with whom organization interacts Stakeholders J persons, groups & institutions directly affected by organization Value creation J creating value for & satisfying needs of, constituencies Environmental uncertainty J lack of complete info about environment (complexity & rate of change) External customers J purchase goods produced or utilize services provided Internal customers J within organization, supply chain Customers want: high quality, reasonable prices, on-time delivery & excellent service www.notesolution.com Customer relationship management J strategically tries to build lasting relationships with & add value for customers Supply chain management J strategically links all operations dealing with resource supplies Lean production J use technology, few workers, small inventory Flexible manufacturing J processes to be changed quickly & efficiently, produce different products/modifications to existing Agile manufacturing & Mass customization J individualized products quickly, production efficiency Design for manufacturing J styled to lower production costs, high quality results Design for disassembly J design while consider how their component parts will be recycled at end Organizational culture J shared beliefs & values that guides behaviour of organizations Strong cultures J clear, well defined, widely shared, encourage positive ones, work in best interests, risk taking, teamwork, innovation Observable culture J visible when sees & hears from others - Stories J oral histories & tales about events Heroes J people (past & present) accomplishments recognized - Rites & rituals J celebration of heroes & events Symbols J language & other symbols Core values J beliefs & values shared by organization members Value-based management J actively develops, communicates & enacts shared values (relevance, integrity, pervasiveness, strength) Symbolic leader J uses symbols to establish & maintain desired organizational culture (Disney) Diversity J describes race, gender, age & other individual differences Multiculturalism J involves pluralism & respect for diversity Multicultural organization J based on pluralism & operates with inclusively & respect for diversity - Pluralism Informal network integration Minimum inter-group conflict - Structural integration Absence of prejudice & discrimination Subcultures J among people with similar values & beliefs based on shared work responsibilities & personal characteristics Ethnocentrism J bellef LhaL ones membershlp group or subculLure ls superior to all others Glass ceiling J hidden barrier to advancement of women & minorities Biculturalism J minority members adopt characteristics of majority cultures in order to succeed Managing Diversity J building inclusive work environment that allows everyone to reach their full potential - Advancing Action 9 Valuing Differences 9 Managing Diversity Chapter 5 Global Dimensions of Management Global economy J resources, markets & competition are worldwide in scope Globalization J process of growing interdependence among elements of global economy International management J managing operations in 1+ country Global manager J culturally aware & informed about international affairs European Union (EU) J political & economic alliance of European countries Euro J common European currency North American Free Trade Agreement (NAFTA) J Canada, USA & Mexico in economic alliance Maquiladoras J foreign manufacturing plants that operate in Mexico with special privileges Free Trade Area of the Americas (FTAA) Asia & Pacific Rim Africa International business J conducts commercial transactions across national boundaries; go for: Profits, customers, suppliers, capital, labour www.notesolution.com Global sourcing J materials/services purchased around world for local use exporting J local products sold abroad Importing J acquiring products abroad & selling in domestic markets Licensing agreement J 1 firm pays for fee for rlghLs Lo makesell anoLher companys producLs franchising J fee pald for rlghLs Lo use anoLher flrms name b operaLlng meLhods Joint venture J operates in foreign country through co-ownership with local partners Foreign subsidiary J local operation completely owned by foreign firm World Trade Organization (WTO) J member nations agree to negotiate & resolve disputes about tariffs & trade restrictions Most favoured nation status J gives trading partner most favourable treatment for imports & exports Protectionism J call for tariffs & favourable treatments to protect domestic firms from foreign competition Multinational Corporation J business with extensive international operations in 1+ foreign country Multinational organization (MNOs) J non-profit missions & operations around world Transnational corporation J MNC operating worldwide on borderless basis Corruption J lllegal pracLlces Lo furLher ones buslness lnLeresLs Sweatshops J employ workers @ very low wages, long hours & poor working conditions Child labour J full-time employment of children for work suppose to be done by adults Sustainable development J meet needs of present without hurting future generations ISO 14000 J offers set of certification standards for responsible environmental policies Culture J shared set of beliefs, values & patterns of behaviour common to group of people Culture shock J confusion & discomfort person experiences when in unfamiliar culture Low-context cultures J communication via spoken/written words High-context cultures J rely on non-verbal & situational cues + spoken/written words in communication Monochromic cultures J doing 1 thing at a time Polychronic cultures J time used to accomplish many things at once Hofstede 5 dimensions differences- power distance, uncertainty avoidance, individualism-collectivism, masculinity-feminist, time Trompenaars 5 major cultural differences with people- universalism vs particularism, indivdualism vs collectivism, neutral vs affective, specific vs diffuse, achievement vs prescription Comparative management J how management practices differ among countries & cultures Currency risk J possible loss due to fluctuating exchange rates Political risk J possible loss of investment in or control over foreign country asset due to instability & political changes in host country Political-risk analysis J forecasts how political events may impact foreign investments Expatriate J lives & works in foreign country Ethnocentric attitudes J consider practices of home country = best Polycentric attitudes J assumes locals know best ways to manage in their countries Geocentric attitudes J value talent & best practices from all over world Chapter 6 Entrepreneurship & Small Business Entrepreneurship J dynamic, risk-taking, creative, growth-oriented behaviour Entrepreneur J willing to pursue opportunities in situations others view as problems or threats; characteristics: Internal locus of control High energy Level High need for achievement Self- confidence Tolerance for ambiguity Flexibility Passion & action orientation Self-reliance & desire for independence
www.notesolution.com Franchise J business owner sells to another the right to operate same business in another location Family business J owned & controlled by members of family Succession problem J issue of who will run business when current head leaves Succession plan J describe how leadership transition & related financial matters will be handled First-mover advantage J comes from being first to exploit niche or enter market Small Businesses Fail: lack of experience, expertise, strategy & strategic leadership, poor financial control, growing too fast, insufficient commitment, ethical failure Lifecycles of Entrepreneurial Firms Birth Stage J Fighting for existence & survival - Establishing firm, getting customers, finding money
Breakthrough Stage J Coping with growth & takeoff - Working on finances, becoming profitable, growing
Maturity Stage J Investing wisely & staying flexible - Refining strategy, continuing growth, managing for success Business plan J describes direction for new business & financing needed to operate it Sole proprietorship J individual pursuing business for profit Partnership J when 2+ people agree to contribute resources to start & operate business together Limited partnership J share profits, losses limited to amount of investment; Limited liability partnership J limits liability of one partner Corporation J legal entity that exists separately from its owners Limited liability Corporation (LCC) J hybrid business form combining advantages of sole proprietorship, partnership & corporation Debt financing J borrowing money that must be repaid over time with interest Equity financing J exchanging ownership shares for outside investment monies Venture capitalists J make large investments in new ventures in return for equity stake in business Initial public offering (IPO) J initial selling of shares of stock to public at large Angel investor J wealthy individual willing to invest in return for equity in new venture Intrapreneurship J entrepreneur behaviour displayed by people/subunits within large organizations Skunkworks J teams allowed working creatively together, free of constrains from larger organization Business incubators J offer space, shared services & advice to help small businesses get started Small business development centres J offer guidance & support to small business owners in how to set up & run business operation Chapter 7 Info & Decision Making Information technology J use of electronic devices that aid in creation, management & use of info Peter Drucker J Productivity of knowledge & knowledge workers, 2 must have competencies: 1. Computer competency J ability to understand computers & use them to best advantage 2. Information competency J ability to utilize tech to locate, retrieve, evaluate, organize & analyze info for decisions Electronic Commerce J buying & selling goods & services through use of Internet B2B J collaborate businesses, B2C J retail 1. Secure online identity 2. Establish web presence 3. Enable e-commerce 4. Provide e-commerce & customer relationship management 5. Utilize service application model www.notesolution.com Instant messaging J instantaneous communication between people online at same time Peer-to-peer file sharing J connects PCs directly to one another over Internet Data J raw facts & observations Information J data made useful for decision making Useful Information Criteria 1. Timely J info available when needed, meets deadlines 2. High quality J accurate & reliable 3. Complete J sufficient for task at hand, up to date 4. Relevant J appropriate for task 5. Understandable
Information system J use IT to collect, organize & distribute data for use in decision making Management info systems J meet info needs of managers in daily decisions Decision support systems J help users organize & analyze data for problem solving Groupware J software that facilitates group collaboration & problem solving Expert systems J allow computers to mimic thinking of human experts for applied problem solving Intranets & corporate portals J use Web for communication & data sharing within organization Extranets & enterprise portals J use Web for communication & data sharing between organization & its environment Electronic data interchange J uses controlled access to enterprise portals to enable firms to electronically transact business with another Problem solving J identifying & taking action to resolve problems Decision J choice among possible alternative courses of action Programmed decision J applying solution from past experience to routine problem Structured problems J straightforward & clear in info needs Unstructured problems J have ambiguities & info deficiency Non-programmed decision J applies specific solution crafted for unique problem Crisis J unexpected problem that can lead to disaster if not resolved quickly & appropriately Crisis management J preparaLlon for managemenL of crlses LhaL LhreaLen organlzaLlons healLh b well-being Certain environment J offers complete info on possible action alternatives & their consequences Risk environment J lacks complete info, but probabilities of likely outcomes for possible action alternatives Uncertain environment J lacks info, difficult to know all alternatives, & probabilities to likely outcomes Systematic thinking J rational & analytical problem solving Intuitive thinking J flexible & spontaneous at problem solving Strategic opportunism J focus on long-term objectives while being flexible dealing with short-term problems Decision-making process J beings with identification of problem, ends with evaluation of implemented solutions 1. Identify & define problem 2. Generate & evaluate alternative solutions 3. Choose preferred course of action & conduct ethics double-check 4. Implement decision 5. Evaluate results
Mistakes: defining problem too broad/narrowly, focus on symptoms instead of causes, choosing wrong problem to deal with Cost benefit analysis J comparing costs & benefits of each potential course of action; + timeliness, acceptability, ethics Classical decision model J decision making with complete info & consequences Optimizing decision J choose alternative giving absolute best solution to problem Behavioural decision model J decision making with limited info & bounded by rationality Satisficing decision J choose first saLlsfacLory alLernaLlve LhaL comes Lo ones aLLenLlon www.notesolution.com Lack-of-participation error J failure to adequately involve persons whose support is necessary to implement decision Decision-making Errors & Traps Heuristics J strategies for simplifying decision making - availability heuristic J use info readily available from memory to assess situation - representativeness heuristic J based on stereotypes set of occurrences - anchoring & adjustment heuristic J adjustment to previous existing value/starting point Framing error J solving problem in context perceived (positive/negatively) Escalating commitment J conLlnuaLlon of course of acLlon even Lhough lLs noL worklng Ethics: Proceed with decision when met J utility, rights, justice, caring Knowledge management J processes using intellectual capital for competitive advantage Chief knowledge officer (CKO) J energizing learning process, make sure intellectual assets well managed & enhanced Learning organization J continuously changes & improves using lessons of experience Chapter 8 Planning & Controlling Planning J process of setting objectives & determining how to accomplish them Objectives J specific results one wishes to achieve Plan J statement of intended means for accomplishing objectives Planning Process 1. define objectives 2. determine where you stand vis--vis objectives 3. develop premises regarding future conditions 4. analyze & choose among action alternatives 5. implement plan & evaluate results
Benefits of Planning J improves focus & flexibility, improves action orientation (results, priority, advantage, & change), coordination, time management, control Rational comprehensive planning (RCP) J focus on logical decision making approach & support system viewpoint, simplicity Types of Plans J short-range < 1yr; intermediate-range 1-2yrs; long-range > 3yrs Strategic plans J identifies long-term objectives for organization; by top management Operational plan J identifies activities to implement strategic plans; production, financial, facilities, marketing, HR Policy J standing plan (use repeatedly) that communicates broad guidelines for decisions & action Procedure/rule J precisely describes actions that are to be taken in specific situations; standard operating procedures SOPs Budget J plan that commits resources to projects/activities; single-use plans Jserve needs & objectives in timely manner Zero-based budget J allocates resources as if budget were brand new Projects J one-time activities that have clear beginning & end points Project management J makes sure activities required to complete in project are accomplished on time & correctly Planning Tools & Techniques Forecasting J attempts to predict future; qualitative J expert opinions; quantitative J statistics & historical data, surveys Contingency planning J identifies alternative courses of action to take when things go wrong (back up) Scenario planning J identifies alternative future scenarios & makes plans to deal with each Benchmarking J uses external comparisons to gain insights for planning Best practices J things that lead to superior performance Participatory planning J includes persons who will be affected by plans & ones who will implement them Controlling J process of measuring performance & take action to ensure desired results After-action review J identifies lessons learned in completed project, task force, or special operation www.notesolution.com Control Process Need for action = Desired J Actual 1. establish objectives & standards 2. measure actual performance 3. compare results with objectives & standards 4. take corrective action Output standard J measures performance results in terms of quantity, quality, cost or time Input standard J measures work efforts that go into performance task Management by exception J attention on substantial differences between actual & desired performance (opportunity/problem) Types of Control Feed forward (preliminary) J ensures directions & resources are right before work begins Concurrent (steering) J focus on what happens during work process Feedback (post-action) J takes place after action completed Management by objectives J process of joint objective setting between superior & subordinate 1. set objectives for given time period 2. plans through on how to accomplish 3. setting standards on how to measure 4. review results
Improvement objectives, personal development, maintenance objectives SMART - Specific, Measurable, Attainable, Referred to Regularly, Time Defined Discipline J act of influencing behaviour through reprimand Progressive discipline J ties reprimands to severity & frequency of misbehaviour Breakeven analysis J calculates sales revenues = costs Economic order quantity J order replacements when inventory level falls to predetermined point Just-in-time scheduling J mlnlmlzes lnvenLory by rouLlng maLerlals Lo work sLaLlons ln Llme Lo be used Quality control J checks processes, materials, products & services to ensure that they meet high standards Chapter 9 Strategic Management Strategy J comprehensive plan guiding resource allocation to achieve long-term organization goals Strategic intent J focuses & applies organizational energies on unifying & compelling goal Strategic management J process of formulating & implementing strategies Above-average returns J exceed what could be earned from alternative investments of equivalent risk Strategy formulation J process of creating strategies Strategy implementation J process of putting strategy into action Mission J organizations purpose for existence in society; includes stakeholders, products/services, location to operate Operating objectives J specific results that organizations try to accomplish Peter Drucker J objectives: profitability, market share, human talent, financial health, cost efficiency, product quality, innovation, social responsibility SWOT analysis J examines organizational strengths & weaknesses, environmental opportunities & threats Core competency J special strength that gives organization competitive advantage Michael Porter J industry competitors, new entrants, suppliers, customers, substitutes Levels of Strategy Corporate strategy J long-term direction for total enterprise Business strategy J identifies how division/strategic business unit will compete in its product/service domain Strategic business unit (SBU) J major business area that operates with some autonomy Functional strategy J guides activities within one specific area of operations www.notesolution.com Growth strategy J expanslon of organlzaLlons currenL operaLlons Concentration J growth within same business area Diversification J growth by acquisition of or investment in new & different business areas Vertical integration J growth by acquiring suppliers (backward) or distributors (forward) Retrenchment strategy J changes operations to correct weaknesses Restructuring J reduce scale & or mix of operations Downsizing J decreases size of operations Divestiture J sells off parts of organization to refocus attention on core business areas Globalization strategy J adopts standardized products & advertising for use worldwide Multidomestic strategy J customizes products & advertising to best fit local needs Transnational strategy J seeks efficiency of global operations with attention to local markets Strategic alliance J organizations join together in partnership to pursue areas of mutual interest E-business strategy J uses Internet to gain competitive advantage B2B business strategy J uses IT & Web portals to link organizations vertically in supply chains B2C business strategy J uses IT & Web portals to link businesses with customers orLers Cenerlc SLraLegles (matrix) Differentiation strategy J offers products that are unique & different from competition, broad market Cost leadership strategy J seeks to operate with lower costs than competitors, broad market Focused differentiation strategy J offers unique product to special market segment Focused cost leadership J strategy seeks lowest costs of operations within special market segment Portfolio Planning J approach seeks best mix of investments among alternative business opportunities BCG matrix J analyzes business opportunities according to market growth rate & market share - Stars J high market-share/high growth business - Cash cows J high market share/low growth business - Question marks J low market share/high growth - Dogs J low market share/low growth business Emergent strategy J develops overtime as managers learn from & respond to experience Strategic leadership J inspires people to continuously change, refine & improve strategies & their implementation - Guardian of trade offs J allocates resources consistent with strategy - make sure everyone understands strategy - Become a teacher, communicator - Create sense of urgency Chapter 10 Organizing Organizing J arranges people & resources to work toward goal Organization structure J system of tasks, reporting relationships & communication linkages Organization chart J describes arrangement of work positions within organization Formal structure J official structure of organization - Division of work (positions & titles) - Supervisory relationships - Communication channels - Major subunits - Levels of management
Informal structure J seL of unofflclal relaLlonshlps among organlzaLlons members Departmentalization J process of grouping together people & jobs into work units; e.g. functional, divisional, matrix Functional structures J groups together people with similar skills who perform similar tasks - Advantages: economies of scale with efficient use of resources, high-quality problem solving, clear career paths within functions, consistent expertise & training - Disadvantages: functional chimneys problem J lack of communication & coordination across functions Divisional structure J group together people working on same product, in same area, with similar customers/processes www.notesolution.com - Advantages: flexibility in responding to environmental changes, improved coordination, focused expertise, changing size, clear points of responsibility - Disadvantages: reduce economies of scale by duplicate resources, rivalries competing for resources & attention Product (market) structure J group together people & jobs related to single product/service Geographical (area) structure J group together people & jobs performed in same location Customer structures J group together people & jobs that serve same customers/clients (Work) Process structure J group jobs & activities that are part of same processes Matrix structure J functional + divisional approaches to emphasize project or program teams - Disadvantages: power struggles with 2-boss system Team structures J uses permanent & temporary cross-functional teams to improve lateral relations Cross-functional team J brings together members from different functional departments Project teams J convened for parLlcular Laskpro[ecL b dlsbanded once lLs compleLed Network structure J uses IT to link with networks outside suppliers & service contractors Outsourcing J when business function is contracted to outside supplier Boundaryless organization J eliminates internal boundaries among subsystems & external boundaries with environment Virtual organization J uses IT & Internet to engage shifting network of strategic alliances Organizing Trends & Practices Upside-down pyramid J puts customers at top, served by workers, supported by managers Chain of command J links all persons with successively higher levels of authority; Trend: flatter organization structures Less Unity of Command J Trend: using more cross-functional teams, becoming more customer conscious, 1+ boss Span of control J # of subordinates directly reporting to manager; Trend: wider span of control, operate w/ less supervision Delegation J process of distributing & entrusting work to other persons; Trend: empower people at all levels, affect self 1. Manager assigns responsibility (expectation) 2. Manager grants authority to act (in order to carryout out tasks) 3. Manager creates accountability (answer to supervisor for performance results) Centralization J concentration of authority for most decisions at top level of organization Decentralization J dispersion of authority to make decisions throughout all organization levels Specialized staff J provide technical expertise for other parts of organization Personal staff J assistant-to positions that support senior managers Advisory authority J suggest but not dictate Functional authority J require others to do as requested Chapter 13 Leading Leadership J process of inspiring others to work hard to accomplish important tasks Vision J clear sense of future Visionary leadership J brings situation clear sense of future & understanding how to get there - Challenge the process - Show enthusiasm - Help others to act - Set the example - Celebrate achievements
Power J ability to get someone else to do something you want done or to make things happen way you want Position Power Reward power J to offer something of value to influence others Coercive power J to punish/withhold positive outcomes to influence others Legitimate power J to influence others by virtue of formal authority, rights of office Personal Power Expert power J influence others because of specialized knowledge www.notesolution.com Referent power J influence others because of their desire to identify personally with you Centrality J gain power by establishing networks of interpersonal contacts, exchange info Criticality J take good care of others who are dependent on them, support Visibility J become known as influential person in organization Empowerment J enables others to gain & use decision-making power Leadership Traits & Behaviours Personal Traits: - Drive - Self-confidence - Creativity - Cognitive ability - Business knowledge - Motivation - Flexibility - Honesty & integrity Leadership styles J recurring patter of behaviours exhibited by leader (2 dimensions) 1. Concern for task to be accomplished J task oriented 2. Concern for people doing work J people oriented Autocratic style J acts in unilateral command-&-control fashion Laissez-faire style J displays do the best you can & dont bother me attitude Democratic style J encourages participation with emphasis on both task accomplishment & development of people Contingency Approaches to Leadership Fiedler J leadership style depends on situational differences in task structure, position power & leader-member relations Hersey-Blanchard J using task oriented & people-oriented behaviours depending on maturity levels of followers (readiness) - Delegating, participating, selling, telling House J path-goal theory, leaders should add value to situations by responding with supportive, directive, achievement- oriented, &/or participative styles as needed Substitution for leadership J factors in work setting that direct work efforts without involvement of leader Vroom-Jago J leader-participation, advise leaders to choose decision making methods that best fit problems theyre trying to solve J individual, consultative, group Authority decision J made by leader & then communicated to group Consultative decision J made by leader after receiving info, advice, & opinions from group members Group decision J made by group members themselves Transformational Leadership Charismatic leaders J develops special leader-follower relationship & inspires followers in extraordinary ways Transactional leadership J directs efforts of others through tasks, rewards & structures Transformational leadership J inspirational & arouses extraordinary effort & performance Qualities: - Vision - Charisma - Symbolism - Empowerment - Intellectual stimulation - Integrity Interactive Leadership Style J women emphasizes communication, involvement & interpersonal respect, consistent with demands of new workplace Druckers Old Fashioned Leadership J is hard work that always requires personal commitment to consistently meeting high ethical & moral standards Ethical leadership J always good & right by moral standards Integrity J leadership is honesty, credibility & consistency in putting values into action Authentic leadership J activates positive psychological states to achieve self-awareness & positive self-regulation www.notesolution.com