What is an organisation?

deliberate arrangement of people to accomplish some specific purpose distinct purpose (in terms of goals they want to accomplish) composed of people (people perform work necessary for organisation to achieve goals) all develop some deliberate structure (can be open/flexible, traditional/define rules or network of loose relationships) mediate between wider society and the individual systematically arranged frameworks that relate people, things, knowledge and technologies to achieve specific goals future oriented and part of open system Why are organisations changing? societal, economic, global and technological changes created environment that requires organisations to adapt What is the difference between a formal organisation and an informal collectivity? Formal/Traditional Collectivity/New Contemporary Deliberately created Spontaneous Defined purpose Distinct goals/objectives Rigid behavioural pattern Flexible behaviour Impersonal/concrete leadership Personal leadership Perpetual longevity Unstable longevity Individual oriented Team oriented Hierarchical relationships Lateral/networked relationships What are the characteristics of organisations? size (small/medium/large) industry (telecommunication/mining etc) ownership type (sole trader/company/not for profit) owner domicile (local/Australian/Multinational) location (city/suburban/regional) physical environment (open plan/personal office) What are the fallacies used when trying understand issues in organisations? blaming the people blaming the bureaucracy thirst for power What is management? What is the context of organisations and management today?

technological change (new products/new procedures) international division of labour (offshoring) changing conception of time and space (work from home/on call) changing demographics (genders/multicultural/age) What is a manager? organisational members who direct others to complete a specified task coordinate and oversee the work of others to accomplish organisational goals team leaders: external relations facilitation and internal relations first-line managers: lowest level of management + manage work of nonmanagerial employees that are involved with producing organisations products/services. Responsible for scheduling/supervision/teaching/training middle managers: all levels of management between first-line and top level (manage first-line). Responsible for implementing strategy/objectives/ coordination top managers: responsible for making organisation-wide decisions and establish goals/plans. Responsible for environment/commitment/goals What is the aim of management? high efficiency (minimum resource use most output with least input) and high effectiveness (goal attainment) = product customer wants at price they can afford low efficiency and low effectiveness = low quality/price low efficiency and high effectiveness = quality product customer wants but too expensive high efficiency and low effectiveness = high quality product that customers to not want efficiency = means + effectiveness = ends What are the features of the scientific-technical revolution? Industrial revolution (19th century) led to share holdings and rise of management (separation of ownership and control) Rise of factory system of production (increase in use of technology/rise of corporations/ growth in number of employees) Specialisation of labour and the production line Study of work tasks to create rules/ one best way of performing tasks Frederick Taylor (popularised division of labour and specialisation) Principles of Scientific Management (developed science for each element of the job/ managers scientifically select and train/ almost equal division of work and responsibility between management and workers) Frank and Lillian Gilbreth time and motion studies took Scientific Management and created greater efficiency/scientific

Henry Ford developed production line but efficiency can lead to unwanted consequences e.g. doubling wages as workers were bored What are the features of administrative management/bureaucracy? (By Weber) qualification based hiring merit-based promotion chain of command division of labour impartial application of rules and procedures recorded in writing managers separate from owners What are the managerial functions? (By Fayol)

Planning top managers spend more time on planning than on other

functions defining goals/establishing strategy/developing plans to coordinate activities Organising determining what needs to be done/how/who Leading (commanding and Co-ordinating) first-line managers spend more time on leading than other functions motivating/dealing with people Controlling monitoring activities to ensure plans accomplished What is the behavioural approach to management? developed in response to scientific approaches to management focused on motivational and behaviour as mechanism to improve organisational performance based on the Hawthorne Studies of the 1920s, Maslows hierarchy of needs and McGregors Theory X (average employee = lazy/ managers should closely supervise/ well defined system of rewards and punishments to control employees) and Theory Y (employees not inherently lazy/ managers should create work that provides for initiative and self-direction/ decentralise authority) What are Mintzbergs Managerial roles (1970s)? (specific categories of managerial behaviour) Decisional (entrepreneur initiates improvement projects/disturbance handler corrective action for unexpected disturbances/negotiator represents in major negotiations/resource allocator allocation of resources) Interpersonal (figurehead symbolic head/leader motivating subordinates /liaison maintains outside contacts)

Informational (disseminator transmits information to members of organisations/monitor understanding of environment/spokesperson transmits information to outsides on plans) What are the 21st century understandings of management? increased emphasis on motivation/leadership/relationships key skill of communication and ability to communicate a position to different audiences less overt control due to technological advancements (swipe cards for building access/login to PCs) top managers need more conceptual skills and less technical whereas team leaders need more technical than conceptual (all levels need human skills) technical job specific techniques needed to perform tasks proficiently human ability to work well with other people individually and in a group (crucial) conceptual ability to think and conceptualise about abstract and complex situations Organisational structure and change What is organisational structure? Formal arrangements of jobs within an organisation to accomplish goals Relatively stable formal network of vertical/horizontal interconnection among jobs - organising = arranging/structuring work to accomplish organisations goals What are the different organisational design elements? work specialisation degree to which tasks divided into separate/individual jobs. This bring about efficiency however overspecialisation may make work over simplified thus leading to falling education levels and make it easier to replace and retrain staff. The job is broken down into small/simple operations i.e. division of labour departmentalisation degree to which work units grouped according to functional similarity e.g. functional (functions performed e.g. HR, purchases), product (product line), geographic (territory/geography e.g. western most common in franchises), process (on how work is done product/customer flow) and customer/client (type of customer/needs e.g. retail, government, wholesale) chain of command line of authority extending from upper levels to lowest levels of the organisation (who reports to who) dependant on authority (rights inherent inn managerial position to tell people what to do), responsibility (obligation/expectation to perform on employees) and unity of command (helps preserve continuous line of authority report to one manager only) span of control number of subordinates each manager is in charge of (number of employees who can be effectively/efficiently supervised by

manager). Factors that influence the span of control include ability of manager, employee characteristics, similarity of tasks, complexity of tasks, proximity of subordinates and standardisation of tasks. (pyramid structure) flatter = easier communication /faster/less expense of wages to managers/ decentralised power. In general wider spans are more efficient (lower costs) but after certain degree it becomes inefficient (manager cant control). centralisation/decentralisation degree to which authority/decision-making is with upper management. Centralisation = single point and decentralisation = managers closest to action and employees get input. Centralisation occurs when the environment is stable, lower levels are not capable of decisions, decisions are more significant, company is large, organisation facing crisis however decentralisation occurs when environment complex, lower levels capable of decisions, decisions relatively minor and company geographically dispersed. Recently more of a trend towards decentralisation i.e. employee empowerment formalisation degree to which jobs are standardised and extent to which employee behaviour guided by rules and procedures. High = little discretion (bureaucratic) + explicit job descriptions and low = fewer constraints over how work done + job behaviours relatively unstructured What is the difference between mechanistic and organic organisations? MECHANISTIC e.g. McDonalds High specialisation simple/routine/ standardised jobs Rigid departmentalisation impersonality Clear chain of command formal hierarchy Narrow spans of control tall structures Centralisation High formalisation Limited information network/ participation ORGANIC e.g. Google Cross-functional teams Cross-hierarchical teams Free flow of information Wide spans of control Decentralisation Low formalisation

Mechanistic tend to rely heavily on rules, regulation, standardised tasks and similar controls. Organisation design attempts to minimise impact of differing personalities, human judgement and ambiguity. Organic organisations are highly adaptive and flexible which allows for rapid change. The employees are highly trained/empowered to handle diverse job activities. They require minimal formal rules and little direct supervision. What are structural decisions influenced by? (contingencies that affect design) overall strategy of organisation structure should help achieve goals should be closely linked. Currently, strategy-structure involves innovation

(pursuit of meaningful/unique innovations), cost minimisation (pursuit of tightly controlled costs) and imitation (seeking to minimise risk and maximise profit by copying market leaders) size of organisation (usually more mechanic as they grow in size larger organisations tend to have more specialisation/departmentalisation /centralisation/rules) technology used by organisation (categories of distinct technologies) unit production (production in small batches = organic), mass production (massmanufacturing = mechanistic) and process production (continuous process producers = organic). The more routine the technology, the more mechanistic the structure in general degree of environmental uncertainty (dynamic environment = organic; stable = mechanistic). The greater the uncertainty, the more the organisation needs the flexibility of organic structures.

What are common organisational designs? a. Traditional tend to be more mechanistic Simple structure low departmentalisation, wide spans of control, centralisation and little formalisation (usually when owner = manager). Becomes increasingly inadequate as organisation grows. Advantages = fast/ inexpensive to maintain/flexible/clear accountability. Disadvantage = risky (all information lost if something happens to the one person in charge) Functional structure groups similar/related occupational specialities together. Advantages = cost-saving accrued from specialisation/economies of scale/minimises duplication of people and equipment. Disadvantage = can lose sight of overall organisation interests/insulated and no idea what other functions are doing Divisional structure organisation made up of separate units/divisions. Each division has relatively limited autonomy (divisional manager) central headquarters (external overseer and provides financial/legal support). Advantages = focus on results/division executives responsible (accountability). Disadvantages = duplication of each functional department in divisions (increases costs and reduces efficiency) b. Contemporary Team structures entire organisation made up of work groups that perform organisations work. Employee empowerment crucial (no line of managerial authority). Teams held responsible for performance. Advantages = employees more empowered and more motivated and reduced barriers among functional areas. Disadvantages = no clear chain of command and pressure on teams to perform. Matrix/project structures matrix = specialists from different functional departments work on projects led by project manager (dual chain of command 2 managers). Only works if two managers communicate regularly and coordinate work demands. Project = structure where employees continuously work on projects. It has no formal departments that employees return to after projects.

Advantages = very fluid/flexible and there is no departmentalisation/ rigid hierarchy (faster), react faster to environmental changes. Disadvantages = complexity of assigning people to projects/ personality conflicts. Boundaryless organisation design is not defined by or limited to horizontal (internal by work specialisation and departmentalisation), vertical (internal by chain of command/hierarchy) or external imposed by predefined structure. E.g. virtual (consists of small core of full-time employees and hire outside specialists temporarily)/network organisation (uses own employees to do some work activities and networks of outside suppliers to provide other needed product components). Advantages = highly flexible/responsive and draws on talent wherever found. Disadvantages = lack of control and communication difficulties

What are todays organisational design challenges? Keeping employees connected mobile computing/communication Sustainability organisation that can generate engagement of employees more likely able to implement/integrate more sustainable practices into daily activities Building a learning organisation capacity to continuously learn, adapt and change can bring economically sustainable source of competitive advantage Managing global structural issues cultural differences, formalisation less important in economically developed countries Managing change What is change? any alteration in people/structure/technology of organisation produces uncertainty and threats/opportunities categories of change: structure/design (culture, job design etc); technology/ operations (equipment etc); people (performance, values etc)

What are the categories of change? 1. Structure alteration in reporting relationships, coordination mechanisms, degree of centralisation, job design or similar structural variables e.g. departmental responsibilities combined or spans of control widened or change structural design. Allows companies to respond more efficiently/effectively to rapid/uncertain changes 2. Technology modifications in the way work is performed or methods/equipment used automation (replaces certain tasks done by people with machines) & computerisation (sophisticated information systems) 3. People changes in attitudes, expectations, perceptions and behaviour of individuals. Can be done by organisational development (OD) i.e. techniques or programs to change people and nature and quality of interpersonal work

relationships. E.g. team building (work in teams to learn how each member thinks), intergroup development (change attitudes/stereotypes and perceptions that members have of each other), survey feedback, (assesses attitudes/perceptions through questionnaire), sensitivity training (changing behaviour through unstructured group interaction express ideas/feelings) and process consultation (outside consultant helps manager understand and act upon process events) What are the forces for change? external marketplace (competitors), government (laws/regulation WorkChoices), technology (developments), labour market (fluctuations) and economic changes internal changed organisational strategy (new CEO), workforce changes (changes in composition in terms of age, education, sex etc.), new equipment (redesigning jobs) and employee attitudes (job dissatisfaction/maternity leave) What are the views of the change process? calm waters metaphor unfreeze status quo, implement change, refreeze (sustained over time) (stable/predictable environment) by providing incentive white-water rapids metaphor lack of stability/predictability (needs adaption and flexibility) What is a comprehensive approach to change? Recognise need for change > establish goals for change > diagnosis of variables > select change technique > plan implementation > implement > evaluation Why do people resist change? ambiguity/uncertainty comfort of old habit concern over personal loss (job, money, authority, friendship) perception change is incompatible with goals/interest of organisation culture ingrained in organisation What are the techniques to reduce resistance to change? education/communication give more information participation employee opinion facilitation/support negotiation manipulation coercion threats/harm

What are change agents? act as catalysts and assume responsibility for changing process managers = internal entrepreneurs non-mangers = change specialists outside consultants = experts/specialists, impartial but may not know specifics of organisation but likely to initiate more drastic change than insiders What is the force field analysis? (due to resistance to change) driving forces encourage change and resisting forces discourage change (equilibrium = forces balanced) but need to shift equilibrium in favour of change by increasing driving (advocate importance of change) and reducing resisting (more effective than increasing driving) What conditions facilitate cultural change? occurrence of dramatic crisis weakens status quo e.g. loss of major customer, major financial setback change of leadership provide alternative set of key values young/flexible/small organisation younger = less entrenched weak organisational culture

What are the current issues in managing change? Changing organisational cultures culture made up of relatively stable and permanent characteristics and can take long time to change (entrenched). Can accomplish change by promoting those that adopt new values, change of reward system, clearly specified expectations and employee participation. Managing downsized workplace downsizing can lead to mistrust of management and low employee morale and some downsized employees can experience trauma of job loss which has serious repercussions Handling employee stress stress is adverse reaction people have to excessive pressure placed on them (associated with constraint and demand). It can be caused by personal and job-related factors. Managers are concerned with reducing stress that leads to dysfunctional work behaviour. Managers can reduce stress by employee selection (abilities match job requirements), job redesign (increase challenge or reduce workload), counselling (for personal stress relief), time management program and wellness programs (e.g. free heart checks). Making change happen successfully 1) focusing on making organisation ready for change (diverse teams, integrate technology, build and deepen trust) 2) understand managers own role in process (can be change agents but must be change leaders) 3) increase role of individual employees (get all organisational members involved)

What does innovation involve? - creativity refers to the ability to combine ideas in unique ways or to make unusual associations but outcomes of creative process needed to be turned into useful products defined as innovation - variables that stimulate innovation: structural (organic positively influence innovation, abundance of resources, inter-unit communication, minimise extreme time pressures and explicit support for creativity); cultural (acceptance of ambiguity, tolerance of impractical and low external controls); human resource (training and development, high job security and autonomy) - sustainability driven change 1) organisations need to see sustainability as a driver for innovation(rather than barrier) 2) companies need to acknowledge sustainability is about taking responsibility for products and how they impact 3) innovation process must be supported by capability to learn 4) measurable targets needed to ensure sustainability maintained 5) change needs to be inspired by clear leadership and internal support - social and environmental entrepreneurs taking advantage of heightened public awareness of social and environmental issues. Sustainability centred in looking for system-transforming, breakthrough innovations in relation to new products, technologies, processes and business models that alleviate social ills/combat global warming Strategy and Human Resource Management What is strategic management? Strategy direction in which organisation intends to move and creation of path by which it intends to get there It is what managers do to develop their organisations strategies Strategic management: o Set of managerial decisions/actions that determine long-run performance of organisation o Process/approach to address competitive challenges faced by organisations o Pattern/plan that integrates an organisations major goals/policies/action sequences into a cohesive whole Business model strategic design for how a company intends to profit from its strategies, work processes and activities Why is strategic management important?

Strategy may lead to higher performance Helps coordinate diverse/complex organisational units (helping them focus on organisational goals) Examines internal organisational characteristics and external environment changes (continually faced with changing situations What are the levels of organisational strategies? (strategic options available)

Corporate level strategy (top managements overall plan based on mission/goals) o Growth strategy expanding the number of markets served internal (incrementally growing) and external (mergers/ acquisitions) growth strategies. TYPES OF GROWTH STRATEGIES: concentration (only primary line of business); vertical integration (expand forward/backward); horizontal integration (merge with competitors); related diversification; unrelated diversification o Stability strategy seek to maintain status quo to deal with uncertainty of dynamic environment (due to external shock) o Renewal strategies to counter organisational weaknesses and address declining performance by retrenchment (elimination of non-critical weaknesses/restoring strengths) or turnaround (addressing critical longterm performance problems through strong cost elimination measures and large scale restructuring) o Emergent strategies Business level (competitive) strategy (determines how an organisation should compete in each strategic business units SBUs). o core competencies (factor business sees as central to the way it is/major value creating capabilities) o competitive advantage (distinctive competitive edge sourced and sustained in core competencies) o quality as competitive advantage constant improvement in quality/reliability of products/services may result in a competitive advantage o sustainable competitive advantage (ongoing ability to develop core competencies that allow organisation to maintain continual edge over competitors) it is valuable, rare, imperfectly imitable and nonsubstitutable o Five-forces model 5 forces determine industry attractiveness/profitability: 1) threat of new entrants 2) threat of substitutes 3) bargaining power of buyers 4) bargaining power of suppliers 5) existing rivalry Competitive strategies: o Cost leadership strategy organisation is the lowest-cost producer in industry o Differentiation offers unique products that are widely valued by customers o Focus cost-advantage or differentiation advantage in narrow segment/niche Functional level strategy (seek to determine how to support business-level strategy)

What is the strategic management process?

1) Identifies organisations current mission/objectives/strategies

o Mission: statement of where the organisation would like to be/reason for being (statement of purpose)

o Goals: what organisation hopes to achieve in future (measureable performance targets) SWOT analysis: 2) external analysis (examining operating environment to identify opportunities/threats) and 3) internal analysis (process of examining strengths/ weaknesses) o External environment specific environment (have direct/immediate impact on organisation) and general environment (broad economic, socio-cultural, legal, political, demographic, technological & global conditions that may affect organisation). Need to pinpoint opportunities and buffer against threats o Internal organisations resources and capabilities. 4) formulate strategies develop/evaluate alternatives, select appropriate strategies, match strengths to environmental opportunities and correct weaknesses/ guard against threats 5) implement strategies strategy is only as good as its implementation thus need to implement correctly 6) evaluate results how effective have the strategies been? (evaluate and then take steps to adjust strategies as required) What are current strategic management issues? Need for strategic leadership i.e. ability to anticipate, envision, maintain flexibility, think strategically and work with others in the organisation to initiate changes that will create a viable and valuable future Need for strategic flexibility ability to recognise major external changes, to quickly commit resources, and to recognise when the strategic decision was a mistake by having multiple alternatives and learning from mistakes New directions in organisational strategies o E-business strategies reduces costs e.g. web-based inventory control systems o Customer service strategies give customers what they want, effective communication with customers and employees with customer service experience o Innovation strategies innovate new/improved ways for employees to do their work in all organisational areas (can lead to lowering costs) o Environmentally sustainable innovation strategies in terms of issues such as global warming, reduced water availability and the need for power supplies from renewable energy sources cleaner methods/research

Human Resource Management Why is HRM important?

Human resources seen as part of competitive advantage (skilled/cohesive

workforce cannot be replicated by competitors) It is important tool in implementing strategy

Affects firm performance Necessary part of organising function of management (selecting/training etc) Legal compliance (laws governing employment relationship) Adds value to the firm (high performance work practices lead to both high individual/organisational performance)

What is HRM?

The policies, practices and systems that influence employees behaviour,

attitudes and performance (people practices) What are the HRM practices/processes?

Human resource planning process by which managers ensure they have

right number/kinds of people in right places at right times (current assessment of HR inventory) Job analysis and design (current assessment) human resource inventory (review of current make-up of organisations HR); job analysis (an assessment that defines a job and the behaviours necessary to perform that job); job description (written statement of what job holder does etc.); job specification (minimum qualifications that person must have to perform given job successfully) Recruitment (decruitment) process of locating/identifying/attracting capable applicants. It aims to increase pool of qualified applicants, reduce number of under/over qualified applicants and meet EEO/social/legal obligations. o Internal sources skills inventory (computerised record systems), job posting via bulletin boards/newsletters o External sources advertising, employment agencies (good knowledge of industry requirements but little commitment to specific organisation), educational institutions (wide distribution but many unqualified candidates), employee referrals (can generate strong candidates because of good referral but may not increase diversity of employees), unsolicited applications, professional associations, internet (reaches large number of people + immediate feedback but many unqualified candidates) Selection process of screening applicants to ensure most appropriate hired. o Methods include: interviews (conversation to gather info); reference checks (data from people who know the applicant); biographical information (age, gender, achievements); physical ability tests; cognitive ability tests (mental capabilities e.g. IQ); personality inventories; work sample tests (simulate job to assess likely performance) o Selection method standards: reliability of prediction (degree of consistency); validity of prediction (proven relationship between selection device used and relevant criterion); generalizability; utility; legality

 Orientation introducing new employee to job/organisation Employee training and development training (planned effort by company to
facilitate employees learning of job related competencies); presentation methods (classroom instruction); group-building methods (team training); hands-on methods (on-the-job, simulations, case studies). Purpose of training and development is to improve performance, update employee skill, solve organisational problems, orient new employees and satisfy personal growth needs Performance management o Performance management system establishing standards/appraising in order to arrive at objective HR decisions and to ensure employees activities aligned with organisations goals o Performance appraisal obtaining data on how well an employee is doing their job o Performance feedback providing data to employees about performance effectiveness o Performance appraisal methods written essays, critical incidents, multiperson comparisons etc. Compensation and benefits (reward management) helps attract/retain high-performance employees. Types include base wage/salary, bonuses, profit sharing, share options, variable pay What are the external factors that affect the HRM process? Economy e.g. job losses/cut-backs during GFC Labour unions seek to protect and promote members interests through collective bargaining IR laws and regulations of great importance to line managers/HR specialists Other legislation e.g. Racial Discrimination Act 1975, Fair Work Act 2009, Equal Employment Opportunity for Women in the Workplace Act 1999 Demographic trends e.g. ageing population

What are the contemporary issues in HRM? Managing downsizing planned elimination of jobs in an organisations. Open and honest communication is critical. Assistance can be provided to employees being downsized. Managers can provide counsellors for survivors . Managing workforce diversity and inclusion diversity: positive acknowledgement of ways in which we are different from one another. Inclusive workplaces tap into the potential of the diverse population to improve productivity. Increasing diversity can be done by widening recruitment net (look for applicants in places where not looked before), making sure selection process does not discriminate etc. Sexual harassment serious issue any unwanted activity of a sexual nature that affects an individuals employment, performance or work environment. Managers perspective: it intimidates employees, interferes with job

performance and exposes organisation to liability. Must have clear/strong policy against sexual harassment Work-life balance family-friendly benefits (accommodate employees needs for work-life balance e.g. flexitime, childcare, job sharing), more flexibility at work, dual-career couples OH&S ethically organisations should attempt to eliminate all conditions that could result in personal injury or health problems for employees. An organisation handling health and safety issues in a responsible way can minimise potential costs of poor safety management. Practices may include proper induction of new staff, written safety rules, good housekeeping and training in first aid

Creating sustainable organisations What are the possible ethical problems of the early 21st century? few rotten apples individual corrupt behaviour that led to bad image of organisation result of something deeper culture of greed and self-interest misalignment of executive incentives and shareholder expectations legal structures political structures and processed (e.g. UK rich people get access to PM and influence the decisions)

What is the current global business environment? global economic integration increased economic and political power of corporations protests and counter movements changes to the world of work technological changes 2009 GDP/Corporation Revenue 6-7 corporations in the top 50 of the list thus they have serious economic power and political power

How have public perceptions of business practices changed? Media focus on ethics and corporate behaviour organisations only make the front page of media if there are scandals Growth in consumer and shareholder activism Increase in litigation related to corporate social and environmental behaviour

What is Corporate Social Responsibility? Doing more than just the minimum legal requirements because the business wants to engage in good social practice in terms of the environment/social/employment

What is corporate/organisational sustainability? Long-term value for the organisation and may involve the use of renewable resources Concerned with green issues, social justice (not only between society and organisations but within organisations as well) and longer term vision

Why is sustainability needed? Continuing health of the planet, survival of humans and other species, the development of a just and humane society and the creation of work that brings dignity and self-fulfilment to those undertaking it

What are the frames/metaphors of thinking? Business is a jungle unpredictable/complex/dangerous/survival of the fittest Business is a war winning battles/anything is acceptable in war for survival Business is a machine as long as everything is well-maintained it will run smoothly OR no control over big machine as it disempowers individuals from taking action Business is a competition being number 1 is the most important aspect

What are ethics? What is good or right for human beings They can be proactive (ethics as doing good) or reactive (ethics as not harming) They are based on personal values and involve social rules Values family, society, history, experience, religion, institutions and peer group Behaviour/etiquette i.e. manners and what is acceptable behaviour. This has no conflicting values thus has no moral component Law time-lag between societal values and changes in laws (legal but not ethical e.g. capital punishment; ethical but not legal e.g. marriage equality) Can be individual, organisational and macro/systemic

Why should a business be ethical? There is a global business environment (relationship between business and society) Public perceptions of business practices e.g. media and customers can affect performance Laws regulation reflecting societys concerns Demonstrated ethical leadership/trust Good ethics is good business (reputation) Costs of criminal/civil liability

What are the factors influencing ethical thinking? Manager as a person family influences, religious values, personal standards Employing organisation policies, codes of conduct, behaviour of supervisors, organisation culture External environment laws/regulation, norms and values of society, ethical climate of industry

What does ethical thinking involve? Need to recognise issues/practices that have moral content System thinking see beyond own personal experience/assumptions, address issues from all sides, consider consequences of decisions Ethical frameworks (apply to situations) evaluate best arguments from each perspective, arrive at conclusion based on systematic analysis of these arguments, defend viewpoints

What are the views on ethical behaviour? Shareholder is it going to affect profit or share price? Stakeholders financial community, activist group, customers, consumer advocate groups, employees etc.

What are the different ethical frameworks? (each has varying degrees of usefulness to assess whether something is good or bad) Individualism does it promote our own long term interests? Utilitarianism does it do the greatest good for most people? Justice does it show fairness and impartiality? E.g. procedural justice (applied equally to everybody), outcome/distributive justice (any rewards distributed equitably) and interactional justice (treating people fairly/with respect) Duties/Moral Rights does it maintain the fundamental rights of all humans?

What are consequence based frameworks? (evaluate purely on the outcome e.g. increase profit doesnt matter how increased as long as it is increased) Utilitarianism end goal can justify the means to get there best course of action has the best outcome for most Ethical egoism seeking self-interest only

What are universal principles/duties (Principles Framework)? Actions can be judged as right or wrong in themselves regardless of consequences People should be treated as ends in themselves with intrinsic worth and never as instruments (means to end)

Treat people as you would like to be treated yourself (golden rules) Does not matter what the outcome is, there is a set of principles that must be followed

What are employee rights and duties? Right to freedom from discrimination, right to due process, right to healthy and safe working conditions, right to fair wages, right to work, right to privacy Duty to comply with labour contract (loyalty), duty to comply with the law, duty to respect employers property

Understanding Groups and Teams What is a group? Two or more interacting/interdependent individuals who come together to achieve specific goals Informal social groups

What is a team? Why do we need teams? Formal work groups are teams members work intensely on specific/common goal Complex projects need more than one person (multiple areas of expertise and one person does not have all the skill, sequential tasks, time one person would take too long to finish project) Teams offer a diversity of knowledge, ideas and opinions

What are the types of teams Problem-solving involved in efforts to improve work activities/to solve specific problems Self-managed operates without manager and responsible for completed work process/segment need to plan/schedule themselves Cross-functional individuals from various specialties/functions Virtual team that uses technology to link physically dispersed members in order to achieve common goal

What are the stages of group development? Tuckman and Jensens (non linear can revisit any stage) o Forming people join the group then define the purpose, structure and leadership. This stage is complete when members begin to think of themselves as part of the group o Storming intragroup conflict. Members accept existence of group but resist control that group imposes on individuality + conflict on who will control group

o Norming close relationships develop and group becomes cohesive strong sense of group identity. Complete when group structure solidifies o Performing focus on performing the task at hand o Adjourning temporary groups prepare to disband Punctuated equilibrium model o Inertia o Punctuated equilibrium o Urgent work

What is group structure? Roles i.e. behaviour patterns expected of someone who occupies a given position in a social unit. Formal roles e.g. secretaries/treasurers o Task-related roles (task accomplishment) roles that help group focus on task at hand e.g. initiator, information seeker, opinion giver o Maintenance-related roles (maintaining group satisfaction) roles that help maintain good interpersonal relationships within the group e.g. harmoniser, encourager, follower o Self-oriented/dysfunctional roles roles that may hinder/undermine teams progress e.g. blocker, dominator, withdrawer Norms standards/expectations that are accepted/shared by a groups members o Dictate things such as output levels, absenteeism, dress code etc. o Implicit (unspoken) or explicit (written/spoken) o Negative aspect = can increase an individuals antisocial actions o Factors determining speed of norm formation: individual characteristics, clarity of the norm, number of people already conformed to norm, quality of interpersonal relationships and sense of group identification Conformity want to be accepted thus susceptible to conformity pressures o Groupthink conformity where members feel extensive pressure to align opinions with other opinions i.e. illusion of agreement o Characteristics that encourage groupthink strong group identity, norm that discourages debate/open discussion, critical thinking is not encouraged, members apply pressure to those who do not support the group o Preventing groupthink encourage critical thinking, leaders should encourage discussion, get someone from outside to evaluate decision making, assign role of devils advocate, split group into smaller groups Status Systems prestige grading, position or rank within a group o Can be informally conferred by individual characteristics of a person/age/ education etc. if group evaluate it that way o Formally formal position e.g. job titles. Should be congruent (consistency between perceived ranking and status symbols) Group size smaller groups faster at completing tasks than larger ones in general but larger ones better at problem solving/fact finding

o Social loafing tendency for individuals to expend less effort when working collectively than when working individually i.e. individuals not carrying their fair share (efficiency declines) Group cohesiveness degree to which group members attracted to one another and share group goals o Generally highly cohesive groups more effective than less cohesive

COHESIVENESS HIGH LOW

alignment of group/ organisational goals

HIGH

strong increases in productivity

moderate increase in productivity

LOW decrease in productivity no significant effect on productivity

What are group processes? (processes that go on within a work group) Group decision making o Advantages: groups provide more complete information (diversity/ experience), groups generate more diverse alternatives (different areas of expertise), increase acceptance of a solution, increase legitimacy (democratic ideals) o Disadvantages: time-consuming, risk minority discrimination (not perfect equality within group thus one may dominate another), pressures to conform (harms quality of final decision), ambiguous responsibility (share responsibility) o Consensus (al members support/committed to decision) by keeping group oriented towards goal, aware of ideas/feelings of others in your group, encourage honest interaction/dialogue Conflict management perceived incompatible differences resulting in some forms of interference/opposition. o Views of conflict: Traditional view of conflict conflict is bad/must be avoided Human relations view conflict is natural/inevitable Interactionist view some conflict necessary for group to perform effectively

o Functional conflict (constructive/improve performance) and dysfunctional (destructive) o Types of conflict: Task conflict over content/goals of work Relationship conflict focused on interpersonal relationships Process conflict over how work gets done o Reducing conflict: Avoidance withdraw/supress Accommodation place anothers needs/concerns above your own Forcing at the expense of anothers needs Compromise each party give up something of value Collaboration seeking advantageous solution for all parties What does creating effective teams involve? (characteristics) Clear goals clear understanding of goals Relevant skills necessary technical/interpersonal skills Mutual trust high mutual trust believe in each others ability/character/integrity Unified commitment dedication to teams goals Good communication healthy does of feedback from members/managers Negotiating skills needed to confront/reconcile differences Appropriate leadership effective leaders (motivate team) Internal/external support

What is involved in managing a team? Planning goal determination + understand these goals Organising clarifying authority/structural issues Leading what is the role of the leader and how conflict will be handled Controlling how will performance be evaluated/reward system

What are current challenge in managing teams? Managing global teams o Issues of global teams: dislike team members, mistrust, stereotyping, communication problems, stress and tension o Benefits: greater diversity of ideas, limited groupthink, increased attention on understanding others ideas, perspectives etc. Understanding social networks (i.e. patterns of informal connections among individuals within a group) social relationships can help/hinder effectiveness

Leadership What is leadership?

Ability of an individual to influence, motivate and enable other to contribute towards effectiveness and success of an organisation Process of influencing a group towards the achievement of goals

What is the difference between leaders and managers? MANAGERS Appointed to their position Can influence people only to the extent of formal authority of their position Do not necessarily have skills/capabilities to be leader LEADERS Appointed or emerge from a work group Can influence other people and have authority Do not necessarily have skill/capabilities to be managers

What can leaders influence? (arguments for impact of leadership) Interpretation of external events by members Choice of objectives and strategies to pursue Motivation of members to achieve their objectives Mutual trust and motivation of member Organisation and coordination of work activities Allocation of resources to activities and objectives Development of member skills and confidence Learning and sharing new knowledge by members Enlistment of support and cooperation from outsiders Design of formal structure, programs and systems Shared beliefs and values of members

What are the early leadership theories? Trait theories (1920s-30s) focuses on identifying personal characteristics that differentiated leaders from non-leaders o 7 traits associated with successful leadership drive desire to lead self-confidence intelligence job-relevant knowledge extraversion honesty and integrity Credibility and trust o Credibility assessment of a leaders honesty, competence and ability to inspire by his/her followers o Trust belief of followers and other in integrity, character and ability of a leader. Dimensions include integrity, competence, consistency, loyalty and openness Behavioural leadership theories

o University of Iowa Studies (Kurt Lewin) 3 leadership styles (autocratic, democratic, laissez faire) o Ohio State Studies 2 dimensions of leader behaviour (initiating structure, role of leader in defining roles, and consideration, leaders mutual trust and respect for group members ideas/feelings) o University of Michigan studies 2 dimensions of leader behaviour (employee orientated, emphasising personal relationships and production oriented, emphasising task accomplishment) o MANAGERIAL GRID What are contingency theories of leadership? Theories that seek to define leadership style Fiedler model how favourable is the situation that occurs o Effective group performance depends upon proper match between leaders style of interacting with followers and degree to which situation allows leader to control and influence o Key factor in leadership success was individuals basic leadership style (task or relationship oriented) o Least-preferred co-worker LPC questionnaire o Situational factors include leader-member relations (degree of confidence, trust and respect subordinates have for leader), task structure (degree that job assignments are procedurised) and position power (influence over power variables of hiring/firing) Hersey-Blanchard situational theory describes 2 leadership dimensions (task and relationship behaviour). Four leadership styles: o Telling high task, low relationship o Selling high task, high relationship o Participating low task, high relationship o Delegating low task, low relationship o Follower readiness varies from (1) unable and unwilling (2) unable and willing (3) able and unwilling (4) able and willing Leader-participation model leader behaviour must be adjusted to reflect task structure (routine, non-routine or in-between) based consequential set of rules (contingencies) for determining the form and amount of follower participation in decision making in a given situation Time-Driven model Path-goal theory theory that its a leaders job to assist followers and to provide direction and support that are needed to attain goals. Four leadership behaviours: o Directive leader lets subordinates know what is expected of them, schedules work to be done, and gives specific guidance on how to accomplish tasks o Supportive leader friendly and shows concern for subordinates needs o Participative leader consults with subordinates and uses their suggestions before making a decision

o Achievement-oriented leader sets challenging goals and expects subordinates to perform at their highest level What are the universal elements of effective leadership? Vision Foresight Providing encouragement Trustworthiness Dynamism Positiveness Proactiveness

What are the factors that make leadership less critical? Substitutes for leadership o Follower characteristics experience, training, professional orientation or need for independence o Job characteristics routine, unambiguous and satisfying jobs o Organisation characteristics explicit formalised goals, rigid rules and procedures or cohesive work groups

Attitudes, perception and personality What is the focus and goals of organisational behaviour (OB)? Study of action of people at work (metaphor as iceberg hidden and visible aspects) Focuses on individual behaviour and group behaviour (norms, roles, team building and conflict) Goals: to explain, predict and influence behaviour

What are the 5 important employee behaviours? 1. 2. 3. 4. 5. Employee productivity measures efficiency and effectiveness Job satisfaction general attitude towards job Absenteeism failure to report to work Turnover voluntary/involuntary permanent withdrawal Organisational citizenship behaviour (OCB) discretionary behaviour that is not a part of employees formal job requirements but promotes effective functioning of organisation

What are the three components of employee attitudes? Cognitive beliefs/opinions/knowledge held by a person Affective emotional/feeling part of an attitude Behavioural intention to behave in a certain way

What are the 3 job related attitudes? Job satisfaction affected by level of income earned and type of work o Satisfied = lower absenteeism; lower turnover o Dissatisfaction can lead to job withdrawal o Can affect consumer satisfaction if frontline employees Job involvement degree to which employee identifies with job, actively participates in it and considers his/her performance to be important to selfworth Organisational commitment degree to which employee benefits with particular organisation and its goals and wishes to maintain membership in the organisation o Affective commitment stay with organisation because you want to/like to o Continuance commitment stay when you see it as a high cost of leaving organisation o Normative commitment stay because its the right thing to do/should do

What is the cognitive dissonance theory? Cognitive dissonance any incompatibility/inconsistency between attitudes or between behaviour and attitudes Intensity of the desire to reduce the dissonance is influenced by: o Importance of factors creating dissonance o Degree to which an individual believes that the factors causing dissonance are controllable o Rewards available to compensate for dissonance

What is a personality? Unique combination of psychological characteristics that affect how a person reacts and interacts with others

What are the 5 dimensions of personality? Locus of control external locus (persons who believe that what happens to them is due to luck or chance) and internal locus (persons who believe that they control their own destiny) Machiavellianism (Mach) degree to which an individual is pragmatic, maintains emotional distance and seeks to gain and manipulate power (ends justify the means) Self-Esteem (SE) degree to which people like or dislike themselves Self-Monitoring individuals ability to adjust his or her behaviour to external situational factors o High self-monitors are sensitive to external cues and behave differently in different situations o Low self-monitors do not adjust their behaviour to the situation Risk-Taking propensity (willingness) to take risks

What are the Big Five personality dimensions? 1. Extroversion sociable, gregarious, assertive, talkative, expressive 2. Adjustment emotionally stable, non depressed, secure and content 3. Agreeableness courteous, trusting, good-natured, tolerant, cooperative and forgiving 4. Conscientiousness dependable, organised, persevering, thorough and achievement orientated 5. Inquisitiveness curious, imaginative, artistically sensitive, broad-minded and playful What does Hollands theory of personality-job fit involve? Type Realistic Investigative Social Conventional Enterprising Artistic What is perception? Process by which individuals give meaning to their environment by organising and interpreting their sensory impressions Personality Shy, stable, practical Analytical, independent Sociable, Cooperative Practical, Efficient Ambitious, Energetic Imaginative, idealistic Occupations Mechanic, Farmer Biologist, economist, Mathematician Social Worker, Teacher, Counsellor Accountant, Manager, Bank Teller Lawyer, Salesperson Painter, Writer, Musician

What are the factors influencing perception? Perceivers personal characteristics (interests/expectations) Targets characteristics (distinctiveness/similarity) Situation/context (place/time/location)

What are the key features of the attribution theory? How the actions of individuals are perceived by others depends on what causation we attribute to a given behaviour (internally caused and externally caused) Determining source of behaviours (distinctiveness, consensus, consistency)

What is the fundamental attribution error? What are the shortcuts used in judging others? Assumed similarity based on own characteristics

Halo effect general perception based on a single characteristic Selectivity information chosen based on our interests Stereotyping attach information to demographic material/characteristic

The Organisational Environment and Global Dimensions of Management What are the key components of an organisations external environment? 1. 2. 3. 4. 5. 6. Political Economic Social Technology Legal Environmental

What is the task/specific external environment? Suppliers provide input resources needed to produce Distribution help in selling good/service (reliability?) Customers type of product impacts of type of relationship with customer Competitors produce similar goods/services

What does environmental uncertainty involve? Stable Dynamism and simple complexity - small external elements and elements remain the same/change slowly Unstable Dynamism and simple - small number of external elements and elements change frequently/unpredictable Stable Dynamism and complex - large number of external elements and elements remain/change slowly Unstable and complex - large number of external elements and elements change frequently/unpredictable

What are the different organisational/corporate cultures? Unitarist/functionalist culture acquired by employees (handed down) Evolutionary culture is organic (brought by employees thus not just one dominating culture) Reflects common views about how things are done or the sum total of how organisation accomplishes its purpose/mission

What does a strong organisational/corporate culture involve? Control system Social glue Sense-making

What is the difference between dominant culture and sub-cultures?

Dominant culture that is espoused/promoted by management and expressed via core balues Sub-cultures o Enhancing o Orthogonal o Counter-cultural

What is geocentricism? World oriented view focusing on best approaches and people from around the world Parochialism viewing world solely through own perspective Ethnocentrism best work approaches/practices comes from home country Polycentrism managers from host country know the best approaches/practices

What is International Business (IB)? Any commercial transaction that crosses the borders of two or more nations Due to: o Rise of MNCs o Internet/globalisation o Cheaper costs differences from local business: crossing borders political and legal differences various modes of entry (FDI, joint ventures, licensing, exports)

What are the challenges and opportunities of managing in a global environment? Communication What is communication? Transfer and understanding of meaning

What are the various models of communication? 1. Linear/transmission model of communication a. Sending>encoding>transmission>channel>receiving>perceive>decod e> meaning 2. Interactional model of communication (continuous cycle feedback) 3. Transaction model of communication (non-verbal) extends linear/transmission model What is a common mistake in communication?

You know what you want to communicate but you may not necessarily get across what the message is inside your head

What is stereotyping? People assign an individual to a group based on one piece of perceptual information Broad range of other characteristics of the group then assigned to individual

What causes communication breakdown/barriers? Aural noise Visual distractions Physical intrusions Physiological noise Sematic noise Psychological noise (emotions)

How can we minimise communication breakdown? Active listening (respond, eye contact, look engaged)

What constitutes interpersonal communication? Verbal (pronunciations, accents and clarity) Written (sentence construction, paragraph flow, appropriate language, presentation) Non-verbal (kinesics body language, occulesics eye contact, haptics touch e.g. professional/social/friendship/intimacy/sexual, proxemics proximity zones including intimate personal social public, paralanguage tempo pitch intonation)

Does medium matter in communication? yes ad hoc do not have openness/trust thus best for face-to-face and then can move on to virtual (prior knowledge)

What constitutes organisational communication? Formal organisation chart Informal grapevine, personal networks Floor plan proximity etc.

Power and Conflicts What is power?

Capacity to influence and persuade others (linked to credibility truthfulness and integrity moral/honest) The greater Bs dependency on A, the greater the power A had over B (General Dependency Postulate)

What is influence? Process of altering attitudes and behaviours of others using sources of power Capacity to be a compelling force on or produce effects on actions, behaviour or opinions of others

What are the sources of power? Formal/Position external/temporary Legitimate power derived from rank/position Reward being able to reward for doing what is required Coercive punish people into doing what is required Resource gatekeepers control over valued resources (withholding and bestowing resources) e.g. secretary, supplies staff Personal internal/permanent Expert derived from unique/in-depth information/skill Referent charisma (power connected to appearance/emotions/status) Networks/relationships related to who you know/how you know them

What is conflict? Process where one party perceives that its interests are being opposed/negatively affected by another (objective or subjective)

What are the types of team conflicts? Task conflict differences in backgrounds, information and skills solve by sharing knowledge Relationship conflict differences in values solve by compromise Process conflict differences in interests and goals solve by transparent process

What are the essential ingredients for business conflict? Interdependence Blame the other party Emotions Business problem e.g. profit loss

What are the advantages of conflict?

Prevents stagnation/stimulates interests Provides opportunities for creative problem solving Can promote group identity and cohesion Encourages dialogue Releases tension Can assist with personal/professional growth

What are the disadvantages of conflict? Provokes anxiety, anger distress Breaks down relationships, communication and cohesion Pushes people to take sides Can provoke verbal, psychological and physical violence Legal costs Increased absenteeism Decreased motivation Turnover

Why does conflict occur? Individual differences (personalities, gender, generation, culture, biasedness) Individual issues (existing psychological conditions, personal stress) Organisational issues (lack of transparency, workplace culture, stressful appraisals, unclear grievance process, scarcity of resources)

What are the methods of dispute resolution? Litigation legal proceedings Arbitration adversarial process with hearing and determination of dispute by neutral third party (legally binding decision) Mediation peaceful settlement/compromise through objective intervention of neutral third party Negotiation discussion intended to produce mutually acceptable solution to complex transaction