BUSINESS 212 MANAGEMENT OF THE

TOTAL ENTERPRISE

MBA-ONE COHORT AUGUST 21, 2006

GEORGE L. WHALEY Ph.D.

INTRODUCTION OF INTRODUCTION OF ORGANIZATION ORGANIZATION

AND MANAGEMENT AND MANAGEMENT CONCEPTSCONCEPTS

AUGUST 21, 2006 AGENDA

GREENSHEET REVIEW

MANAGEMENT CONCEPTS OVERVIEW

MANAGEMENT ROLES EXERCISE

MANAGEMENT STYLES EXERCISE

NEXT WEEK’S ASSIGNMENT

BUS 212 GREENSHEET

INSTRUCTOR CONTACT INFORMATION OFFICE HOURS COURSE DESCRIPTION COURSE OBJECTIVES COURSE METHODOLOGY EVALUATION CRITERIA EXAMS TEXTBOOKS WEEKLY/SEMESTER ASSIGNMENTS STUDENT CONTACT INFORMATION

SESSION LEARNING OBJECTIVES

AT THE END OF THIS CLASS SESSION, EACH PARTICIPANT WILL BE ABLE TO:

1. UNDERSTAND THE COURSE REQUIREMENTS AND APPROACH

2. DEFINE MANAGEMENT AND THE KEY CONTRIBUTIONS OF MANAGEMENT ACTIVITIES TO ORGANIZATIONAL EFFECTIVENESS

3. ANALYZE THE CONTRIBUTION OF EACH MANAGEMENT PERSPECTIVE TO ORGANIZATIONAL EFFECTIVENESS

4. ANALYZE YOUR INDIVIDUAL MANAGEMENT STYLE AND IMPLICATIONS FOR EFFECTIVENESS IN DIFFERENT SETTINGS

5. IDENTIFY THE TEN BASIC MANAGEMENT ROLES AND IMPLICATIONS FOR ORGANIZATIONAL EFFECTIVENESS

6. LINK MATERIALS IN REQUIRED READINGS TO KEY MANAGEMENT THEORIES, MODELS, CONCEPTS AND APPLICATIONS

DEFINITION: ORGANIZATIONAL BEHAVIOR

A field of study that investigates the impact that individuals, groups and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness

Other Definitions:___________________ __________________________________________________________________

DEFINITIONS: MANAGEMENT

GETTING WORK DONE THROUGH PEOPLE

COORDINATION OF THE WORK ACTIVITIES OF TWO OR MORE PEOPLE IN ORDER TO ACHIEVE A COMMON GOAL

OTHER DEFINITIONS: ____________________________________________ ____________________________________________ ____________________________________________

MANAGEMENT/OB CONTEXT

EXTERNAL FORCES- UNCONTROLLABLE

ECONOMIC

TECHNOLOGICAL LEGAL AND REGULATORY GLOBAL

SOCIETAL VALUES INTERNAL FORCES- CONTROLLABLE

ORGANIZATIONAL (ENTERPRISE)

GROUP (DYAD OR GREATER) INDIVIDUAL

HINT:THESE FORCES ARE USED IN OUR BUS. 212 CASE ANALYSIS. CAN YOU PROVIDE SOME CURRENT EXAMPLES?

INTERNAL LEVELS OF ANALYSIS

ORGANIZATIONGROUP

INDIVIDUAL

WHAT IS AN ORGANIZATION?

ENTERPRISE LEVEL?

GROUP LEVEL?

INDIVIDUAL LEVEL?

ROOTS OF OB

IndividualPsychology

Social PsychologyGroups

Sociology

Anthropology

Political Science Organization

OrganizationalBehavior

ECLECTIC VIEW

MANAGEMENT FUNCTIONS

PROCESSES

ACTIVITIES

PRINCIPLES

KEY MANAGEMENT FUNCTIONS

PLANNING

ORGANIZING

DIRECTING

STAFFING

CONTROLLING

DECISION-MAKING

PLANNING*Setting objectives*Deciding how to accomplish them

LEADING*Creating vision*Inspiring commitment*Directing efforts toward a common purpose

CONTROLLING* Monitoring performance* Taking action to ensure desired results

ORGANIZING*Dividing up the work*Assigning people to jobs*Allocating resources

FOUR FUNCTIONS OF MANAGEMENT

MANAGEMENT HISTORY

CLASSICAL

NEO-CLASSICAL

MODERN

WHAT IS THE ROLE WHAT IS THE ROLE OF MANAGEMENT OF MANAGEMENT

HISTORY?HISTORY?

SCHOOLS OF MANAGEMENT THOUGHT

C L A S S IC A L T H E O R Y

S C IE NT IF IC M A NA G E M E NT A D M INIS T RA T IV E PRINC IPL E S | BURE A UC RA T IC O RG A NIZ A T IO N

(R A T IO N A L E C O N O M IC V IE W )

HISTORICAL EVOLUTION IN MANAGERIAL THOUGHTHISTORICAL EVOLUTION IN MANAGERIAL THOUGHT

ASSUMPTIONS OF HUMAN BEHAVIOR

MAJOR PROPONENTS: OR THEORISTS

MAJOR VARIABLES AND/OR CONCEPTS

EXAMPLES OF THEORIES OR MODELS WHICH CONTRIBUTED TO EACH

USUAL TOOLS, TECHNIQUES OR PRESCRIPTIONS SUGGESTED

TIME PERIOD INVOLED

CLASSICAL THEORY

1. THEORY X 2. ECONOMIC MAN/RATIONALE 3.MECHANICAL MODEL

1. TAYLOR 2. FAYOL 3. WEBER

1.STRUCTURE/ EFFIENCY 2.DIVISION OF LABOR 3. SCALAR CHAIN

1. SCIENTIFIC MANAGEMENT 2. ADMINISTRATIVE MANAGEMENT 3. BUREAUCRATIC MODEL

1. PIECE-RATE 2. TIME & MOTION STUDIES 3. IDEAL SPAN OF CONTROL

1885-1930

NEO-CLASSICAL THEORY

MODERN THEORY

1. THEORY Y 2.SOCIAL MAN/RATIONALE 3. MANIPULATIVE MODEL

1. MAYO 2. DAVIS 3. DALE

1. STRUCTURE/ SATISFACTION 2.. STAFF 3. GROUP BEHAVIOR

1. INFORMAL GROUP 2. HUMAN RELATIONS 3.DECENTRALIZATION

1. ADD STAFF TO LINE 2. MANIPULATE INFORMAL GROUP 3. PARTICIPATIVE MANGEMENT

1950-1960

1. THEORY Z 2. COMPLEX PERSON 3. ORGANIC MODEL

1. ARGYRIS 2. HERZBERG 3. LIKERT

1. STRUCTURE/ BEHAVIOR 2. ORGANIZATIONAL EFFECTIVENESS 3. MOTIVATION

1. CONTINGENCY 2. SYSTEMS THEORY 3. HUMAN RESOURCES MODEL

1. MANAGEMENT OBJECTIVES 2. PROJECT MANAGEMENT 3. CONFLICT MANAGEMENT

1961-UNTIL

EVOLUTION IN MANAGEMENT APPROACHES

DISCUSSIONSAVOID RISKFOCUS=NOT FAILINGHESTIANCY (CHECKING)INFORMATION ORIENTATIONFILE INFORMATIONINDIVIDUAL AGENDASOBSTRUSIVE HIERARCHYCONTROLCOMPETITION WITHINUSE KNOWLEDGEDIRECTEDINDIVIDUAL VALUES“DO IT TO...”ACCEPT DIFFERENCES

DIALOGUEREWARD RISKFOCUS=SUCCEEDINGOPENNESS AND TRUSTPROCESS ORIENTATIONSHARE INFORMATIONTEAM AGENDATRANSPARENT TRANSPARENT HIERARCHYINVOLVEMENTCOMPETITION WITHOUTAPPLY LEARNINGEMPOWEREDCOMMON VALUES“DO IT WITH...”VALUE DIVERSITYDIVERSITY

TRADITIONAL ORGANIZATIONS HIGH PERFORMANCE ORGANIZATIONS

Traditional Uses: UNIVERSAL APPROACH

Organizational problem or situationsdetermine

the one best way ofresponding

High Performance Uses: CONTINGENCY APPROACH

Organizational problemsor situations must be evaluatedin terms of...

elements of the situation whichthen suggest

contingent waysof responding

COMPARISON OF MANAGEMENT USES

TRANSFORMATIONALMANAGEMENT

LEARNING ORGANIZATION

E-ORGANIZATION

REENGINEERING

CORE COMPETENCIES

TIME-BASED COMPETITION

ORGANIZATIONAL ARCHITECTURE

Irwin/McGraw-Hill

BASIC OB MODEL

Independent variables

Organizational Level

Group Level

Individual Level

Dependent variables

Productivity

Absenteeism

Turnover

Job Satisfaction

EFFICIENCY VERSUS EFFECTIVENESS

EFFICIENCY IS DOING EVERYTHING RIGHTAUTOMOBILES:AMERICAN AUTOMOBILE MANUFACTURERS PRODUCED A LARGE VOLUMEOF GASOLINE FUELED CARS AT A COMPARATIVELY LOW PRICEELECTRONICS:SELECTED MANUFACTURERS OF COMPUTER EQUIPMENT PRODUCED A HIGHVOLUME AND HIGH QUALITY AT A COMPETITIVE PRICE

ADD BIOTECH INDUSTRY EXAMPLE: __________________________________________________

EFFECTIVENESS IS DOING THE RIGHT THINGAUTOMOBILES:AMERICAN AUTOMOBILE MANUFACTURERS EFFECTIVE IF THE PRICE OF OIL RESULTS IN A DEMAND FOR SMALLER, HIGHER QUALITY FOREIGN CARS? HYBRID CARS? U.S. CARS?ELECTRONICS:ARE COMPUTER MANUFACTURERS EFFECTIVE IF THE MARKETPLACE NO LONGER DESIRES EQUIPMENT AT CURRENT PRICE/PERFORMANCE RELATIONSHIPS?

ADD YOUR SPECIFIC COMPANY/INDUSTRY EXAMPLEADD YOUR SPECIFIC COMPANY/INDUSTRY EXAMPLE:________________:________________ ___________________________________________________________

___________________________________________________________

EFFICIENCY METRICS

1. (+/+) OUTPUT INCREASES FASTER THAN INPUT

2. (-/-) INPUT DECREASES MORE THAN OUTPUT

3. (0/-) PRODUCE SAME OUTPUT WITH LESS INPUT

4. (+/0) PRODUCE MORE OUTPUTS WITH SAME INPUTS

5. (+/-) OUTPUT INCREASE AS INPUT DECREASES

EFFICIENCY = OUTPUT / INPUTEFFICIENCY = OUTPUT / INPUT

WHAT IS THE DIFFERENCE BETWEEN WHAT IS THE DIFFERENCE BETWEEN EFFICIENCY AND EFFECTIVENESS?EFFICIENCY AND EFFECTIVENESS?

MANAGERIAL ROLES

DEFINE ROLE

TYPES OF ROLES

ROLES RESEARCH

ROLES DIFFER BY FUNCTION AND LEVEL

Organizational Organizational StatusStatus

1.Top Level Managers

2.Mid Level

3.Low Level Managers

Skill EmphasisSkill Emphasis ConceptualConceptual: Ability to

grasp the big picture and analyze abstract issues

HumanHuman: Ability to demonstrate positive interpersonal skills

TechnicalTechnical: Ability to demonstrate competence and expertise in a particular field

MINTZBERG’S MANAGEMENT ROLES

INTERPERSONAL FIGUREHEAD LEADER LIAISON

INFORMATIONAL MONITOR DISSEMINATOR SPOKESPERSON

DECISIONAL ENTREPRENEUR DISTURBANCE HANDLER RESOURCE ALLOCATOR NEGOTIATOR

MINTZBERG’S MANAGERIAL ROLES

CategoryCategory Role Role Examples Examples

Interpersonal FigureheadFigurehead -Attend Employee Retirement CeremonyLeaderLeader -Encourage workers to increase

productivityLiaison Liaison -Coordinate activities of two committees

Informational MonitorMonitor -Scan Fortune for info about competitionDisseminatorDisseminator -Send memos outlining new policiesSpokespersonSpokesperson -Talk to press about firm’s actions

Decision-makingEntrepreneurEntrepreneur -Develop ideas for new products and

convince others of its meritsDisturbance HandlerDisturbance Handler -Resolve disputesResource AllocatorResource Allocator -Allocate budget requestsNegotiatorNegotiator -Settle new labor contracts

EXERCISE ON MANAGEMENT ROLES In the 10 scenarios, please identify the most important In the 10 scenarios, please identify the most important “management role” played“management role” played

NAME OF PERSONScenario #1 : _________________#2 : ___________________#3 : ___________________#4 : ___________________#5 : ___________________#6 : ___________________#7 : ___________________#8 : ___________________#9 : ___________________#10 : __________________

MANAGEMENT ROLEScenario #1 : __________________#2 : ___________________#3 : ___________________#4 : ___________________#5 : ___________________#6 : ___________________#7 : ___________________#8 : ___________________#9 : ___________________#10 : __________________

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MANAGEMENT ROLES EXERCISE

WOULD YOUR DISCIPLINE INFLUENCE YOUR RESPONSES?

WOULD YOUR LEVEL IN ORGANIZATION INFLUENCE YOUR RESPONSES?

WOULD YOUR STYLE INFLUENCE YOUR RESPONSES?

WOULD YOUR MANAGER’S STYLE INFLUENCE YOUR RESPONSES?

WOULD THE ORGANIZATIONAL CULTURE INFLUENCE YOUR RESPONSES?

TRANSITION IN ROLES

INDIVIDUAL CONTRIBUTOR

SUPERVISORS AND MANAGERS

LEADERS

1. Task-oriented 1. Results-oriented 1. Goal-oriented

2. Perform task 2. Establish mission 2. Establish vision

3. Follow rules 3. Thrive on order 3. Tolerate ambiguity

4. Avoid mistakes 4. Correct failures 4. Make failure success

5. Self motivated 5. Motivate by systems 5. Motivate by inspiration

6. Resist change 6. Adjust to change 6. Create change

ANY DILEMMAS?ANY DILEMMAS?

THEORY X ASSUMPTIONSTHEORY X ASSUMPTIONS

1. The average human being has an inherent dislike of work and will avoid it if he can.

2. Because of this human characteristic of dislike for work, most people must be coerced, controlled, directed, and threatened with punishment to get them to put forth adequate effort toward the achievement of organizational objectives.

3. The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security above all.

ASSUMPTIONS ABOUT HUMAN BEHAVIOR

ASSUMPTIONS ABOUT HUMAN BEHAVIOR

THEORY Y ASSUMPTIONS:THEORY Y ASSUMPTIONS:1. The expenditure of physical and mental effort in work is as natural as play or rest.

2. External control and the threat of punishment are not the only means of bringing about effort toward organizational objectives. Man will exercise self-direction and self-control in the service of objectives to which he is committed.

3. Commitment to objectives is a function of the rewards associated with their achievement.

4. The average human being learns under proper conditions not only to accept but also to seek responsibility.

5. The capacity to exercise a high degree of imagination, ingenuity and creativity in the solution of organizational problems is widely, not narrowly, distributed in the population.

6. Under the conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilized.

MANAGEMENT STYLE

Indicate(number between 10-40) on the scale below where you would classify your own basic attitudes as a first line manager toward your subordinates in terms of McGregor's Theory X and Theory Y assumptions. Theory X___________________________Theory Y 10 20 30 40

SUPERVISORY STYLE: THE X-Y SCALEDirections: The following are various types of behavior which a supervisor (manager, leader) may engage in relation to subordinates. Read each item carefully and then put a check mark in one of the columns to indicate what you would do.

Make a Great Tend to Make a Great IF I WERE A SUPERVISOR : Effort to Tend to Avoid Doing Effort to

Do This Do This This Avoid This

1. Closely supervise my subordinates in order to get better work from them.2. Set the goals and objectives for my subordinates and sell them on the merits of my plans.3. Set up controls to assure that my subordinates are getting the job done.4. Encourage my subordinates to set their own goals and objectives.5. Make sure that my subordinates' work is planned out for them.6. Check with my subordinates daily to see if they need any help.7. Step in as soon as reports indicate that the job is slipping.8. Push my people to meet schedules if necessary.9. Have frequent meetings to keep in touch with what is going on.10. Allow subordinates to make important decisions.

34

MANAGEMENT STYLES

PLEASE COMPARE SELF REPORTED STYLE SCORE AND YOUR SCORE ON TEN ITEMS

COMPUTE THE GAP IN SCORES

WHAT IS YOUR EXPLANATION FOR THIS GAP?

WHAT IS YOUR SCORE ON OTHER ASSESSMENT INSTRUMENTS?

REVIEW OF REQUIRED READINGS

READING #1 READING # 2

READING # 3

36

NEXT WEEK 8/28/2006

PLEASE BRING A COPY OF YOUR COMPANY VISION/MISSION STATEMENT AND PROJECT STRATEGY OR CREATE IT.

PLEASE BRING A COPY OF YOUR CURRENT JOB DESCRIPTION OR CREATE IT.

COMPLETE V-C CHART OF YOUR EMPLOYER’S CULTURE

Q & A FROM READINGS AND CLASS DISCUSSION.