Module: Advanced Management Text Book: New Era of Management, International Edition by Richard L. Daft 1) The Nature of Management (CH 1 & 7) 1. 1) W hat is management? ? Getting things done with/thru people – Mary Parker Follet ? Has certain principles and guidelines ? A combination of practice and theory ? Apply theory ? Practice without theory is limited by experience ? W hat is good in the past experience may not be good for the present time or future ? Knowledge with practice make a better manager ? Today’s definition of management is more technocrat. ? “Management is what managers do” – Dr Lourdes. Managers manage and responsi ble for the work of others ? Does management matter? ? Good vs bad management ? Historically management is learned thru practice ? To run organization better ? More complex issues today ? Involves managing a lot of money ? Global competition. ? More challenging environment ? Application of management skills depends on individual ? Mintzberg – management mus be practised to be effective manager. ? Mismanagement issue ? Companies and government fail because of poor management 1. 2) W hat do managers do? Peter Drucker and tasks of manag ement. ? Peter Drucker define management by the tasks the managers do. . Set objectives 1. determine what objectives, goals 2. Organizes 1. analyze the activities, decisions and relations needed. 2. Classify work and divide into managable jobs. 3. Then group the jobs into org structure. 4. Then select people 3. Motivate & communicate 1. Make a team, thru own practice, relation, 2. people decision on pay, placement & promotion 3. thru constant communications with superiors and subordinates 4. Measurement 1. Establish yardstik to measure performance 2. Analyse, appraise and interpret performance 3. Communicate the meaning of the measurements 5. Develop people including himself 10 Managerial Roles of managers (Mintzberg) – p21, Ex 1. 7 ? Information processing roles 1. Monitor – seek and receive info, scan reports maintain personal contacts 2. Disseminator – forward info to other org members, send memos & make calls 3. Spokeperson – transmit info to outsiders thru speechs, memo & reports ? Decision-making roles 1 Module: Advanced Management Text Book: New Era of Management, International Edition by Richard L. Daft 4. Entrepreneur – initiate improvement projects, identify new ideas & delegate idea responsibilities 5. Disturbance handler – take corrective actions during disputes & crisis, resolve conflicts . Resource Allocator – decide who gets resources, schedule, budget, set priorities 7. Negotiator – represent dept during negotiation of union, sales, purchase, budget ? Interpersonal roles 8. Figurehead – perform ceremonial duties. Visitors, signing legal docs 9. Leader – direct and motivate subbordinates, train, counsel & communicate 10. Liaison – maintain info link both inside and outside orgs; use email, calls, meeting ? Mintzberg – typical activity patterns in managerial work ? Pace of work is hectic and unrelenting ? Content of work is varied and fragmanted. Doing a lot of things in one time. ? Many activities are reactive.
Many problems are n ot planned. ? Interactions often involves peers or outsiders ? Horizontal interaction ? Outsiders – suppliers, government ? Networking activities ? Many interactions involve oral communications ? Phones more than emails/mails ? Decision processes are disorderly and poli tical ? Not systematic, not rational, practical limitation ? Political in nature ? Most plannings are informal and adaptive ? Short term planning decision ? Adaptive to situation around the company ? Making small changes ? The effective executive (Drucker) – p65 . Tasks of management: 1. Sets objectives / mission / goals / targets 2.
Organize / plan 3. Motivate & communicate ? Shared with employees 4. Measure performance ? Analyze, appraise, interpret performance 5. Develop people ? The effective Executive: ? Able to achieve organizational goal ? W e are not born to be effective but can be learned ? Manage time well ? Fighting well ? Make effective decision ? Concerned with results and not work. Not micro -manage. Management by exception ? Set priorities. Concentrate on things that matters. Identify critical factors for success ? Build on strength 2 Module: Advanced Management Text Book: New Era of Management, International Edition by Richard L.
Daft 2) The Evolution of Management Thought (CH 2) 2. 1 2. 2 2. 3 The practice of management 1)Historical view The study of management 1)Drucker’s book “The Practice of Management” (1954) 2)Father of the study of management Schools of Management 1)Classical School ? Fredric Winslow Taylor – Scientific Management 1. Put a system to manage factory 2. Time & motion study 3. Find a solution to motivate people to increase outpot 4. Study work productivity and efficiency 5. Ergonomics – physical environment conducive to work 6. W ork simplification ? Problems/weaknesses ? No input on human aspects ? Treat humans like machines Carrot-and-stick approcah to motivation ? Saw management as a science ? Found one best way to manage people – as law of science ? Henri Fayol – French mining engi neer ? Administrative principles ? More interested in how to manage an organization ? Identify functions of management. 14 general principles of mgmt ? Division of work ? Increase production by deviding work ? Authority and responsibility ? Manager must have authority ? Discipline ? Rules & proccedures in organization ? Unity of command ? One employee reports to one boss ? Unity of direction ? One person one plan to decide activities to achieve org goal ?
Subbordination of individual interest to the general interest ? Org interest first before employee’s own interest ? Remuneration ? People must be rewarded fairly ? Centralization ? Stike a balance between centralization vs decentralization ? Scalar chain ? Chain of comman from org chart is clear ? Order ? Rules, regulation & procedures are in place ? Equity ? People are treated fairly. ? Stability of tenure of personnel ? People feel secure in employment 3 Module: Advanced Management Text Book: New Era of Management, International Edition by Richard L. Daft ? Initative ? Encourage creativity and innovation ? Esperit de corps Develop feeling of oneness or unity in org ? Criticism of Fayol ? Did not provide explanation on di fferent situation ? No empirical studies. Based on his experience. ? Tying to apply scientific approach to management ? W eber – German Sociologist. p36 ? Talk about structure and idea on Bureaucracy ? Interested in how to get a lot of people to work together ? Charecteristics of Weberian Bureaucracy ? Division of labor with clear definition of authority and responsibility ? Positions organised in hierarchy of authority ? Managers subject to rules and procedures to ensure reliable behavior ? Management separate from ownership o f org Administrative acts and decisions recorded in writing ? Personnel selected and promoted based on technical qualification ? Criticisms ? Did not appreciate the social contex of work and needs of workers ? Did not acknowledge variance among individuals ? Regard workers as uninformed and ignore their ideas/suggestions. 2)Human Relation School – reaction to Classical school 1)Mayo & Hawthorne Studies ? Professor Elton Mayo and Fritz Rocthlisberger ? Done in Hawthorne plant at the Western Electric Co in Chicago ? Study the lighting effects ? Control the lights and outputs of workers are measured ? Increased lighting, increase productivity Reduced lighting but productivity still increase ? Change the supervisor ? Human Relation Theory ? Self motivation theory ? Feeling of beign recognised as a person ? Treat people as people ? Human environment ? Company culture -humanities 3)Behavioral School – p404 1)Behavior of organizations: individual, group, organizational unit ? Experiment –how group functions? ? Individual in group is controlled by the group. Gro up think. ? Conformance – underperform or overperform ? Study of organizational behavior – why certain org behaves certain ways ? Treating people, move away from structure/functions Pyychologists & sociologists study ? How to influence behavior? ? W hat motivate people? ? Personalities ? Perception of peoples 4 Module: Advanced Management Text Book: New Era of Management, International Edition by Richard L. Daft ? Leadership ? Behavior in org ? Individual ? Group ? Organizational unit 4)Social Systems School –Systems Approach. p45 & 46 ? W hat is a system? A set of interrelated parts that functions as a whole to achieve common purpose/goals. ? Performance of a system is greater than the sum of the parts ? S = A + B + C + D ? Synergy – because of the interactions between components. Organization is a systems. ? Parts = people + structure + policies + skills + stratergies of the companies ? The parts become the output of the organization ? To improve the performance of org ? Holistic approach – study the environment ? Looking into people + structure + policies + skills + stratergies of the companies ? A system can be Open or Close systems ? Close system – within boundry ? Open system – PEST Environment comes in (Political, Economic, Social & Technology) ? Environments = political, culture, government policies, suppliers, legal, economies. ? Social System School – people is crucial factor )Decision Making School 1)Simon ? Look at oll the above elements ? Decision making behavior ? Unit of analysis – something is the core of the study ? Before you act, you decide ? Reductionist 3) Organizations – (CH10) 3. 1) W hat is an organization? ? Defined by characteristics ? A group of people working together to achieve common objective ? Structure ? Distribution of work, responsibility and authority ? System and processes ? How work to be done? ? Evaluatin system? ? Reward system? 3. 2) The formal organization and its characteristics ? Org charts ? Pictorial representation 3. 3) The informal organization Strategy followed by structure ? Does not follow the approved structure 5 Module: Advanced Management Text Book: New Era of Management, International Edition by Richard L. Daft 3. 4) 3. 5) 3. 6) 3. 7) 4) ? Informal leader – knowledge based ? Communication ? Grapevine Organizational design ? Function – departmentalization ? Product ? Area ? Process ? Customer ? Matrix – p238 – not unity in command ? Divisional ? Multidomestics eg Msia, Thailand & Singapore ? Transnational – value chain Organizational structure ? Level ? Authority – parity principle. Authority to make decision ? Accountability ? W ork Responsibilities ? Control ? Communication ? Unity of command New forms of organization ? Delayering – flat management ? Boundryless ? Decentralization ? Team management – p285 ? Virtual organization – p286 ? Network organization No one best form of organization ? W ays of looking at organization 1. As Economic system (mechanistic) 1. Resources come from outside ? process them to produce goods ? output sold to market (make profit) 2. As Social system (organic & cultural) 1. People oriented like a living system. Organic & cultural. 3. As Political system (power) Managing and Motivating People – (CH16) 4. ) How to motivate and manage people? ? No recipe for managing people. People treated as resource. Now people treated as capital – as a mean to an end. ? Depends on how we percieve people. ? Org should exist for the people ? Argument – manager want to achieve the goal of the org and not the goal of the people 4. 2) Some motivation theories: ? The “economic man” (Taylor) – Carrot-and-stick theory ? Taylor ? “man is selfish”. Self interest. Economic theory. 6 Module: Advanced Management Text Book: New Era of Management, International Edition by Richard L. Daft ? ? ? ? Financial reward, piece-meal. Give more to motivate people.
Maximize limited resources Interested in productivity, efficiency, work structure and process Man is economic being. ? Positive – Man responds to reward (carrot) ? Rewards ? Promotion ? Kind words ? Recognition ? Negative – Man wants to avoid pain (stick) ? If not performing to expectation: ? Transfer to other dept ? W arning ? dismissal ? Criticisms / Limitations ? Taylorism is not the right way to treat people ? W hy some people are excited to work when they are not paid the highest? ? W hen people are satisfied money is less impo rtant as motivator. ? According to Maslow peole have different levels of needs ?
Only works for certain people motivated by financial reward ? Carrot / rewards are limited ? How to distribute reward? ? Need to distribute fairly. ? The “social man” (Mayo). p468 ? Emphasis on rewarding people in a group ? Relationship is important ? The “psychological man” (Maslow, McClelland). Need as motivators. P472. Ex 16. 2 1. The hierarchy of needs ? Psychological – food, water, oxygen ? Safety – ? job security, freedom, work benefits ? lifelong employment – a Japanese idea is now abandoned ? American – hire & fire concept ? Belongings – family, group ? Esteem – approval, recognition ? Motivation by Promotion ? Best employee of the month ? Open recognition ? Given a secretary, room, computer, car ? Self actualization – education, religion, hobby 2. Individuals have certain needs that are inherent or natural 3. Man is psychological being and has different needs . 4. Once a need is met or satisfied, that need will no longer be as motivator 5. Only unmet needs are motivators 6. Underlining motive of the manager is to influence the individual behavior ? To be more productive ? affect the productivity of org 7 Module: Advanced Management Text Book: New Era of Management, International Edition by Richard L.
Daft ? Find ways to influence behavior ? If economy ? then use carrot-and-stick method 7. Criticism of Maslow ? No empirical research ? Theory is based on experiments ? Not proven ? Only practical value (make sense) ? Limitation ? Because arranged in hierarchy ? In actual situation it is possible to have many needs at the same time and not in particular order ? Eg. When laid off – people are willing to take any job ? People are also motivated by beliefs and value rateher than needs 8. McLelland’s 3 needs ? predominently used to see wher an individual can function well in a job. ? Simplify the needs Need for achievement – R&D, CEO jobs ? Need for affiliation – social need – NGO job, PR job ? Need for power – political jobs, big org jobs 9. Psychologist vs. Sociologist ? Psychologist – study individuals ? Personality of individuals ? Measurement – Myers Briggs. 6 major types of personality ? Maslow, McCllelland, Hertzberg, McGregor and Vr oom ? Sociologist – study people in a group ? Unit of analysis ? what are you studying? ? Unit of analysis in Sociology is group ? Study society – eg Hawthorn study. Group behavior, group norms, team conflicts, teambuilding. ? Study culture 10. Political scientists Unit of analysis is power ? W ho makes the key decision ? Monopoly of power ? Access to reward ? Punish others 11. Anthropologist ? Org exists within culture ? Examine organizational culture ? Value of culture ? Interaction ? Org built to last 2. The hygiene theory (Hertzberg), intrinsic vs extrinsic rewards. P471, 482, 487 1. Referred to as 2 factor theory ? motivators vs dissatisfiers ? Motivators ? Achievements ? Recognitions ? W ork itself ? Importance of job as motivator 8 Module: Advanced Management Text Book: New Era of Management, International Edition by Richard L. Daft ? Look at the job content Is it challenging, exciting as motivator? ? Concept of job design, job enlargement, job enrichment ? Personal growth ? Dissatisfiers ?. people become unhappy ? W orking conditions ? Pay and security ? Pay is dissatisfier if not enough ? Hertzberg does not treat money as motivator ? Supervisors ? Interpersonal relationship 2. Disagreement to Hertzberg theory ? Salary is only treated as dissatisfier and not as motivator ? Maybe tru in western culture ? In Asian society, salary is still the motivator. Money is important motivator ? W orking condition ? improving working condition is not enou gh to motivate people 3.
Intrinsic vs. Extrinsic rewards ? Intrinsic – The work must be rewarding ? Extrinsic – reward from outside the job 4. Two ways to manage people – theory X and theory Y (McGregor) – p42 1. 2 styles of management assumptions 2. Theory X ? People born irresponsible, basically lazy if let alone will not perform ? People need to be motivated ? People will not take responsibility of their own ? Close supervision is necessary 3. Theory Y ? People can take challange, can work on their own 4. Styles of Management – Theory X manager ? Negative assumption on people ? Strong leadership ? Micro manage ? Put in procedures and systems No empowerment 5. Styles of management – Theory Y Manager ? Participative styles of management ? Decentralization ? Empowerment ? 2 way communication 6. People respond to the styles of management ? Behave in accordance to the style of management ? Self fulfilling prophecy 7. Theory Z – Onuchi ? A combination of American and Japanese elements ? In theory x people become lazy, become useless and become unperformed ? In theory Y people develop positive attitude and fulfill the assumption 5. Expectancy theory (Vroom). F=E x V. P476 1. F = force of motivation 2. E = expectency 9 Module: Advanced Management
Text Book: New Era of Management, International Edition by Richard L. Daft 3. V – value (the desired result) 4. The way employee will behave is dependent on the belief of ability to do work 5. F = hardwork (E) x promotion (V) ? here this company believes that by hardwork will lead to promotion. 6. The employee’s motivation depends on how the employee value promotion. 7. Or promotion is important to him but hardwork will not lead to promotion. 8. The significant is what is his belief or expectation. If he belief from the past experience that the effort does not meet the outcome then he is not motivated. ? Managing knowledge workers . KW are highly skillful, not loyal, achievement oriented, mobile 2. More motivated by McClelland motivational theory 3. Respond to theory Y manager 4. Vs manual worker who are more suitable for Taylor’s carrot -and-stick theory ? Managing workforce in diversity ? MNCs have workforce of different nationalities, cultural backgrounds, education, religions etc ? The workforce has different value system, expectation due to cultural difference ? The people look at problems differently, approach problem differently. ? The benefits of solving are also different 1. 2) Managing constructive contention (Pascale) ? Book – Managing the Age How to manage to avoid conflict – for harmony? ? Pascal – such an org is not the right org for 21st century ? Conflist must be built into the system ? Don’t take conflict as negative ? Manager must be able to use conflict (disagreement in solving problem) ? Order & disorder ? In Search of Excellence book – Peter Drucker 1. Many excellent companies have chaos 2. Peter Drucker use word Abandonement 3. He said in every 3 years the leaders must step back and ask “are we dong the right thing? If not then abandon. ? Jack Welch – ex CEO of GE asked Drucker’s question “If you weren’t already in this business, would you enter it today” Drucker – org must create environment for constructive contention for people to come forward with constructive ideas. 1. 3) Managing global workforce ? Fortune 500 companies ? Complicated – different time zone, decentralization, cultural difference 1. 4) Managing individual differences & personalities. P413, 414, 415, 418 ? Certain things are common but are different in certain ways. It is a perceptual world. ? Depends on our background ? People are different and to be manage differently ? It is tough to manage individual differently because they want different things. ? Their personalities are also different Myers Briggs Type indicators ? Personality traits test ? W hat are the personality traits of employees? 10 Module: Advanced Management Text Book: New Era of Management, International Edition by Richard L. Daft ? ? ? ? ? 5) 16 different personalities If we know Mr. X is type Y personality then we know how to manage him. Attitude, values, perception 5 big personality factors 1. Extrovision 2. Agreeableness 3. Concientness 4. Emotional stability 5. Opennes to experience Holland’s personality Job Fit. p487 Giving meaning to work through engagement Type of personality & characteristics 1. Realsitic Prefer physical activities that require skills, strength and coordination ? Eg. Job – mechanic, drill press operator, assemb ly line worker, farmer 2. Investigative ? Prefer activities involving thinking, organizing & understanding ? Eg. Job – economist, mathematician, news reporter 3. Conventional ? Prefer helping & developing others ? Job – social worker, teacher, counselor 4. Enterprising ? Prefer verbal activities to influence and attain power ? Lawyer, PR, Business manager 5. Artistic ? Prefer ambiguous and unsystematic activities ? Job – painter, musician, writer Leadership 5. 1) W hat is organizational leadership? Many levels of leaders in org 5. 2) Is leadership important for organizational performance? Does leadership matter? ? Jim Collins – book Built to Last ? From good to great ? Characteristics of lasting org ? 12, 13, 15 year everage lifespan ? Fortune 500 – average 50 years ? Culture, values, system, strategy ? Downplay leadership ? Accept idea that leaders do matter ? Called level 5 leadership. P436 ? Drucker does not play down leadership ? Does not differentiate leaders and managers ? A good manager will do all the good things a good leader will do ? A good manager is not necessarily a good leader W arren Benis / John Kotter – Success can be quantified ? At least 15% of success is attributed to leadership. Quoted by Buckingham 5. 3) Leadership studies: ? Traits – what traits leaders should have 11 Module: Advanced Management Text Book: New Era of Management, International Edition by Richard L. Daft 1. 1) 5. 4) 5. 5) 5. 6) 6) ? Behavioral approach – styles of leadership ? Leadership styles and behaviors: There is no one effective leadership. Depending on situation and readiness of the people. ? Autocratic ? Democratic ? Laissez-faire – manager does not want to decide ? Bureaucratic 1. Role oriented, process oriented 2.
More manager than leader ? Transactional 1. Manager who do not establish long term relationship 2. Event oriented ? Transformational 1. Introduce major changes 2. Revolutionizing, moving to new direction ? Theory X ? Theory Y ? Task oriented vs. People oriented– p445. Ex15. 6 1. Task oriented – getting work done 2. People oriented – relationship is important 3. Mouton’s managerial grid 1. The Leadership Grid 2. Country Club management 3. Authority – compience ? Idealistic Leadership style – team management ? Impoverished management ? Ethical leadership – principle-centered. Situational / Contingency leadership (Fiedler) –p446, 447, 448, 449 ?
Fiedler – depends on the contongency of the situation 1. Under certain situation people oriented leader is better 2. Under certain situation task oriented leader is better ? Situation: Favorable vs. Unfavorable 1. 8 situations ? Hersey Blanchard Leadership Sytles ? Based on readiness to take on responsibilities 1. Telling style 2. Selling style 3. Participating style 4. Delegating style Leadership styles and organizational life cycles. Leaders and managers – similarities and differences. – P442 ? Buckingham – Leaders are concerned about the future ? Establish the purpose ? Rally people to follow the leader Managers do things right ? Leaders do the right things Impact of culture on leadership – what is expected of leaders in different cultures (Hofstede) – p105 Problem Solving and Dicision Making (CH9) 12 Module: Advanced Management Text Book: New Era of Management, International Edition by Richard L. Daft 6. 1) Decision making as a key managerial task (Simon) ? Decision making is a choice from 2 or more available alternatives that have uncertain consequences 6. 2) The decision making process: ? Define the decision problem ? Seek alternative solutions ? Evaluate the alternatives ? cost benefit analysis Select / decide on the “best” alternative (quantitative and qualitative analysis) ? Implement the alternative selected ? Review results and take remedial actions 6. 3) The premises of decisions: ? Facts ? Values/beliefs 6. 4) Limitations of rational decision making ? Information – not enough ? Analysis ? Assumptions ? Value and cultures ? Context – surronding circumstances ? Personaliy of decision maker 6. 5) Concept of “bounded” rati onality. P243 ? People have limits or boundries on how rational they can be ? Within that boundry, how do we improve the rationality? ? By adapting certain decision models 6. ) W hat is “good” decision? 6. 7) Some decision models ? Rational-comprehensive model ? Incremental model (Lindblom, Quinn) ? List all the alternatives ? Look for alternative that is minimum in incrementally difference ? Don’t choose the alternative that is too far from current process ? Least risk ? Satisficing model (Herbert Simon) – p243 ? First set criteria for your solution ? Choose good enough decision 6. 8) Group decision making – pros and cons ? Group think (no disagreement) vs. Individual think (fast – after consulting people) 6. 9) Decision making styles: ? Telling ? Selling ? Participation ? Delegating ? Likert-System 1-4 Utocratic ? Participative – Japanese style. Support the dicision ?? ?? 13 Module: Advanced Management Text Book: New Era of Management, International Edition by Richard L. Daft 7) Managing Change and Innovation 7. 1) Organization as open social systems ? Org has to innovate because of external influences such as globalization, turbulence and competition. Forces come from environment a nd from within the organization. Customer wants better customer service, better products and cheaper price. ? Innovation is completely new way organizing the traditional process, and change the way of life or the way society works. North Korea is a closed system that the leader’s decision to purchase arms does not alter the social system ? China, although a communicat, is pro-capitalist today that they are open social system 7. 2) Need to evolve and adapt to environmental changes (organic model) ? Organization as a living system ? Organic vs mechanistic ? Capacity to adapt to the environment ? Business fails becaus fail to adapt to the environment 7. 3) Role of leadership in organizational change (change agent) ? Anyone in organization can initiate change (Japanese idea) ? Quality Circle and Lean Production concept ? Leaders as major change agents.
Give direction to change. ? Manager mantian change 7. 4) Nature of change: ? Evolutionary / incremental – small changes every day ? Revolutionary / transformational – eg new governement in power ? Planned – experiement the new way of doing business. Decided by management. ? Emergent – emerge from within/below organization 7. 5) The change process: ? Kurt Lewin’s model. p320 1) Unfreeze – remove, abandon, destruction 2) Change – bring in new processes, implement change, commi t to the change 3) Refreeze – maintain the commitment to the new process ? Criticism ? Problem with 3rd step – Refreeze. Works in stable society. . In turbulent environment (current) or not stable environment – so many factors cannot be done. 2. Environment is fluid and adaptive 3. Those who do not adapt will be left behind 4. American org is operating in “white waters” 5. The concept of stability will not work 6. Org are ruthless/chaos and constantly moving ? Force-Field analysys. P324. Ex 11. 7 ? Driving forces – need for change ? Restraining forces – barrier to change ? Build of coalition of people to support change ? Kotter’s model (8 phases) 1. Establish a sense of urgency ? Show people the need for change urgently ? If not the org will die 2.
Create coalition 14 Module: Advanced Management Text Book: New Era of Management, International Edition by Richard L. Daft 3. 4. 5. 6. 7. 8. ? Align with people from inside and outside the org to support change ? The ability to influence people to support (political ability) Develop a clear vision ? Show what are the end results Share the vision ? Shared valued by all in the org ? Must be accepted by the org Empower people to clear obstacles ? Delegate power ? Structure for implementation Secure short-term wins ? Celebrate short wins to keep the excitement ? So people know we are achieving short term targets Showing progress ? Bring enthusiasm and energy to implement change Consolidate and keep moving ? Encouraging people ? Reward people ? Training people Anchor ? Build safeguard to implement ? So the change lasts ? Support the people to ensure change process are implemented/ continued ? Institutionalise the change ? Make it part of the org process, routine, practice 7. 6) Resistance to organizational change and innovation. P322 ? Leadership 1. Change implies threat / uncertainty 2. Need to change new knowledge 3. Change may affect people. Restructuring, losing jobs. 4. Will I be the CEO after merger? Organizational culture 1. That is the way we do it 2. That is the value for last 100 years ? Success (good is enemy of great – Jim Collins) 1. Stop to change / innovate 2. Complecency 3. Arrogant 4. Internal decay ? Organizational environment 1. If no competition become complecent 2. Protection policy 7. 7) Concept os “inflection” point (Andy Grove) ? Andy Groove is founder of Intel ? Book – Only the Paranoids Survive ? Inflection point is the point at which the company is at critical stage of future direction ? Intel was loosing competitiveness to competitors ? Move from microchip mfg to micropocessors mfg Introducing new major change / direction of the company 15 Module: Advanced Management Text Book: New Era of Management, International Edition by Richard L. Daft 7. 8) Continuous change – learning organization (Peter Senge) ? Learning companies – 3M, Microsoft, Apple, GE ? Vs. Static companies ? Creative ? Size becomes a problem to learning org ? Interpreneurship ? How do manager create learning org? 1. Abandonment (Drucker) 2. Cannibalizing own product. Peter Sange’s Fifth Discipline 7. 9) Developing the creative organization (OD) Structure the org to increase creativity 1. Delayering 2. Managing KW 3.
Attracting talents 4. Human talent management – invest in people 5. Empowerment 6. Reward ideas 7. Diversity in workforce – create constructive conflicts of ideas 8. Creating Knowledge Management system 7. 10) Managing innovation in organizations ? Concept of innovation ? Product – new product development ? Service 1. Banking 2. Retailer – efficient service, fast to replace setup 3. Education – online education 4. Ebusiness concept ? Process – improvement 1. Manufacturing process – Toyota’s JIT and six sigma 2. Banking –faster payment process 3. Mechanization of technology 4. Controlling process ? Business model . The way you do business 2. Dell – sell PC online 3. IBM – sell thru resellers 4. Direct Marketing 5. AirAsia – Low cost carrier ? Sustaining 1. To meet the requirement of the market ? Disruptive (Christensen) 1. Christensen – The Innovator’s Dilemma 2. New technologies emerge that change the way society function. 3. Eg. Steam engine, telecommunication, microfinancing. 4. Change the way business is done 5. Eg. Smartphone, mobile marketing ? Innovation and competitive advantage ? Managing innovation ? Can it be managed? 1. Yes. A lot of factors. Structures to manage innovation. 16 Module: Advanced Management
Text Book: New Era of Management, International Edition by Richard L. Daft ? ? ? ? ? ? ? People (talent) Management Organization Corporate culture – culture can be hindrance Closed innovation – innovation comes within the org ? R&D Open innovation – from outside the org 1. From customers 2. Suppliers 3. Partners 4. Univesity researchers 5. Different industries Eg. Volvo does not use assembly line 1. Job enrichment 2. Design the job 3. Org development – learning org 4. Create pro-change org ? corp culture 5. Restructure the org 8) Management and Culture ? Is management universal or culture-bound? ? Management principles are common Management tasks that Drucker identified are applied ? But difference depends on the environment ? Affect management style ? Different to manage companies in Asia and US ? Culture, values & belief ? Management is culture bound. Management is not neutral. ? Application of management tasks depends on culture ? American generally values individual performance. ? Value placed on individual ? Reward on individual performance ? Paid according to contribution 1. Carrot-and-stick method ? American value individual freedom ? Japanese generally value group performance ? Performance evaluation is based on the group . Concensus 2. Group relationship 3. Group harmony 4. Individual must be sacrifice for the group ? Islamic managment ? Emphasis on the group ? Belief ? Gender ? Justice ? Knowledge is revealed by God ? Confucian management ? Group ? Respect to elders ? Go behind the doctrin 17 Module: Advanced Management Text Book: New Era of Management, International Edition by Richard L. Daft ? Chinese ? Autocratic ? Importance of working with people ? Confirming to religous beliefs ? Impact of culture on management (Hofstede) – p105 & p80. ? 5 cultural dimensions 1. Power distance – the distribution of power 2.
Individualism – collectivism 3. Masculinity – feminity 4. Uncertainty avoidance 5. Long term orientation ? American values in management theories ? Legislative ? Democratic ? Individual reward ? Asian management (Mendoza) ? W omen treated differently 9) Management Challanges in the 21st Century ? Globalization ? W hat happens to the other part of the world will affect you ? Affect the growth ? Provide unlimited opportunity ? Removal of barriers ? Challanges global economy ? Uncertainty and turbulance ? Because of globalization, changing technology, political turmoil, revolution, property bubble make the world unstable Managers assess the impact and decide whether to enter business in certain countries ? PEST – Political, Economical, Social and Technology ? Economiy – unstable, currency fluctuating, oil price, energy issue ? Social – aspiration of the people, demographic changes ? Technology – new product that makes your product obselete ? Cultural diversity – CH12 ? Future org will be more diverse culturally since people come from different nationality, language & religion ? Managing will be a challange ? Global operation, different political system ? Organization structure ? Centralization Reward system ? Knowledge management ? How to manage Knowledge Workers? ? Demand autonomy, no loyalty, more mobile, more participative decision ? Requires new way of managing KW ? Acquisition and alliance (networks) ? New skills for manager – how do I manage merger? ? How to manage network, partners, suppliers? ? How do I relate to them? 18 Module: Advanced Management Text Book: New Era of Management, International Edition by Richard L. Daft ? Managing technology and innovation ? Company needs to innovate ? Ethics and social responsibility (multiple stakeholders) – CH5 19