Managers and Decision Making in Workplace PDF

13 Managers in Workplace Manajemen Bisnis Ganjil 2024/2025 1 Learning Objectives PART 1. Tell who managers are and where they work. PART 2. Explain why managers are important to organizations. PART 3. Describe the functions, roles, and skills of managers. PART 4. Explain the value...

13 Managers in Workplace Manajemen Bisnis Ganjil 2024/2025 1 Learning Objectives PART 1. Tell who managers are and where they work. PART 2. Explain why managers are important to organizations. PART 3. Describe the functions, roles, and skills of managers. PART 4. Explain the value of studying management. 2 PART 1 Who Are Managers? Manager – Someone who coordinates and oversees the work of other people so that organizational goals can be accomplished. First-line Managers - Individuals who manage the work of non-managerial employees. Middle Managers - Individuals who manage the work of first-line managers. Top Managers - Individuals who are responsible for making organization-wide decisions and establishing plans and goals that affect the Levels of Management entire organization. 3 PART 1 Where Do Managers Work? Organization – A deliberate arrangement of people assembled to accomplish some specific purpose (that individuals independently could not accomplish alone). Common Characteristics of Organizations: Have a distinct purpose (goal) Are composed of people Have a deliberate structure Common Characteristic of Organization 4 PART 2 Why Are Managers Important? Organizations need their managerial skills and abilities more than ever in these uncertain, complex, and chaotic times. Managerial skills and abilities are critical in getting things done. The quality of the employee/supervisor relationship is the most important variable in productivity and loyalty. 5 PART 3 What Do Managers Do? Management involves coordinating and overseeing the work activities of others so that their activities are completed efficiently and effectively. Efficiency Effectiveness Doing things right Doing the right Getting the most things output for the least Attaining inputs organizational goals 6 PART 3 The Four Management Functions Planning Organizing Leading Controlling Defining goals, establishing Arranging and strategies to Working with and structuring work Monitoring, achieve goals, through people to accomplish comparing, and and developing to accomplish organizational correcting work. plans to integrate goals. goals. and coordinate activities 7 PART 3 Management Roles Roles are specific actions or behaviors expected of a manager. Mintzberg identified 10 roles of managers, grouping into three categories. 8 PART 3 Skills Managers Need Technical skills - Knowledge and proficiency in a specific field Human skills - The ability to work well with other people Conceptual skills - The ability to think and conceptualize about abstract and complex situations concerning the organization 9 PART 4 Why Study Management? Universality of Management The reality that management is needed : in all types and sizes of organizations at all organizational levels in all organizational areas in all organizations, regardless of location 10 PART 4 Challenges and Rewards of Being a Manager Challenges Can be a thankless job May entail clerical type duties Managers also spend significant amounts of time in meetings and dealing with interruptions Managers often have to deal with a variety of personalities and have to make do with limited resources Rewards Responsible for creating a productive work environment. Recognition and status in your organization and in the community. Attractive compensation in the form of salaries, bonuses, and stock options. 11 Referensi Robbins, Stephen P & Coulter, Mary A. (2017). Management (14th edition). London : Pearson Education. 12  14 Making Decision Manajemen Bisnis Ganjil 2024/2025 13  “A key to success in management and in your career is knowing how to be an effective decision-maker.” 14 Learning Objectives PART 1. Describe the eight steps in the decision-making process. PART 2. Explain the four ways managers make decisions. PART 3. Classify decisions and decision-making conditions. PART 4. Describe different decision-making styles and discuss how biases affect decision-making. PART 5. Identify effective decision-making techniques. 15 PART 1 The Decision-Makin g Process Decision – making a choice from two or more alternatives. 16 PART 1 The Decision-Making Process Step 1: Identify a Problem – Problem – an obstacle that makes it difficult to achieve a desired goal or purpose. – Every decision starts with a problem, a discrepancy between an existing and a desired condition. – Example: – Amanda is a sales manager whose reps need new laptops. – Effectively identifying problems is important, but not easy. 17 PART 1 Tools for Identifying Problems Finding the cause of a problem is not always easy. Example: sneezing, fever, and runny nose are only symptoms, the source of problem is flu/cold. Tools that we can use to identify main problems: ▪ Fishbone Diagram ▪ CATWOE ▪ 5 WHYs 18 19 20 PART 1 The Decision-Making Process (cont.) Step 2: Identify Decision Criteria – Decision criteria are factors that are important (relevant) to resolving the problem. – Example: – Amanda decides that memory and storage capabilities, display quality, battery life, warranty, and carrying weight are the relevant criteria in her decision. Step 3: Allocate Weights to the Criteria – If the relevant criteria aren’t equally important, the decision maker must weight the items in order to give them the correct priority in the decision. 21 PART 1 The Decision-Making Process (cont.) Step 4: Develop Alternatives – List viable alternatives that could resolve the problem – Example: – Amanda, identifies eight laptops as possible choices. Step 5: Analyze Alternatives – Appraising each alternative’s strengths and weaknesses. – An alternative’s appraisal is based on its ability to resolve the issues related to the criteria and criteria weight. Step 6: Select an Alternative – Choosing the best alternative – The alternative with the highest total weight is chosen. 22 PART 1 Example of Important Decision Criteria and Possible Alternatives Possible Alternatives Important Decision Criteria 23 PART 1 Example of Evaluation of Alternatives 24 PART 1 The Decision-Making Process (cont.) Step 7: Implement the Alternative – Putting the chosen alternative into action – Conveying the decision to and gaining commitment from those who will carry out the alternative Step 8: Evaluate Decision Effectiveness – The soundness of the decision is judged by its outcomes. – How effectively was the problem resolved by outcomes resulting from the chosen alternatives? – If the problem was not resolved, what went wrong? 25 PART 1 Decisions Managers May Make 26 PART 1 Decisions Managers May Make (cont.) 27 PART 2 Four Ways on How Managers Make Decisions Evidence-Bas Bounded Rationality Intuition ed Rationality Management 28 PART 2 Rationality Rational Decision-Making – describes choices that are logical and consistent while maximizing value. Assumptions of Rationality – The decision maker would be fully objective and logical – The problem faced would be clear and unambiguous – The decision maker would have a clear and specific goal and know all possible alternatives and consequences and consistently select the alternative that maximizes achieving that goal 29 PART 2 Bounded Rationality Bounded Rationality – decision-making that’s rational, but limited (bounded) by an individual’s ability to process information. Satisfice – accepting solutions that are “good enough.” Escalation of commitment – an increased commitment to a previous decision despite evidence it may have been wrong. 30 PART 2 Intuition Intuitive decision-making Making decisions on the basis of experience, feelings, and accumulated judgment. Suggested reading: Blink: The power of thinking without thinking by Malcom Gladwell 31 PART 2 Evidence-Based Management Evidence-based management (EBMgt) – the systematic use of the best available evidence to improve management practice. Example case: A cosmetic company learned that their sales associates in Jakarta branch had the highest turnover of any store sales group. Based in this evidence, the manager decide to perform more thorough pre-employment assessment test 32 PART 3 Decisions & Decision-Making Condition straightforward, a repetitive Structured familiar, and Programmed decision that easily defined can be handled Problems problems. Decision by a routine approach. problems that unique and Unstructure are new or Non-programm nonrecurring and d Problems unusual and ed Decision involve custom made for which solutions. information is ambiguous or incomplete. 33 PART 3 Programmed Versus Nonprogrammed Decisions 34 PART 3 Decision-Making Conditions Certainty Risk Uncertainty A situation in which A situation in which a decision maker A situation in which a manager can has neither the decision maker make accurate certainty nor is able to estimate decisions because reasonable the likelihood of all outcomes are probability certain outcomes. known. estimates available. 35 PART 3 Managing Risk When making decision with some risks, managers can use historical data from past experiences or secondary information that lets them assign probabilities to different alternatives. Managers use this information to help make decisions by calculating the expected value – the expected return from each possible outcome – by multiplying expected revenues by (the probability). 36 PART 3 Calculating Expected Value Suppose you manage a Colorado ski resort, and you’re thinking about adding another lift. You have fairly reliable weather data from the last 10 years on snowfall levels in your area—three years of heavy snowfall, five years of normal snowfall, and two years of light snow. And you have good information on the amount of revenues generated during each level of snow. Based on the calculation, will you add another lift?? Of course, whether that’s enough to justify a decision to build depends on the costs involved in generating that revenue. 37 PART 3 Uncertainty Managers face decision-making situations of uncertainty. Under these conditions, the choice of alternatives is influenced by the limited amount of available information and by the psychological orientation of the decision maker. An optimistic manager will follow a maximax choice (maximizing the maximum possible payoff); a pessimist will follow a maximin choice (maximizing the minimum possible payoff); a manager who desires to minimize his maximum “regret” will opt for a minimax choice 38  Mini Case: Making Decision in Uncertain Condition Anda adalah strategic manager di perusahaan Visa. Saingan Anda, yaitu Payoff Matrix MasterCard sedang melakukan ekspansi besar-besaran ke Indonesia. Berdasarkan informasi yang Anda kumpulkan, terdapat tiga kemungkinan strategi yang dapat diambil MasterCard. Sayangnya, Anda tidak bisa mengetahui probabilitas strategi yang akan diambil MasterCard. Anda sudah menyiapkan 4 alternatif strategi untuk mempertahankan posisi Visa di Indonesia. Manakah strategi yang paling tepat untuk dipilih? Copyright © 2016 by Pearson Education, Ltd. 39 Optimistic & Pessimist Manager Payoff Matrix Optimistic manager will choose S4 (Maximax) Maximin Pessimist manager will choose S3 Maximax (Maximin) Copyright © 2016 by Pearson Education, Ltd. 40 PART 3 Minimizing Regret Payoff Matrix Regret Matrix 28-11 = 17 24-9 = 15 28-15 = 13 21-14 = 7 Minimax Manager who desires to minimize his maximum “regret” will choose S4 (Minimax) 41 PART 3 Decision-Making Styles Linear Thinking Style – a person’s tendency to use external data/facts; the habit of processing information through rational, logical thinking. Nonlinear Thinking Style – a person’s preference for internal sources of information; a method of processing this information with internal insights, feelings, and hunches. 42 PART 4 Decision-Making Biases and Errors Holding unrealistically positive views of oneself and one’s Overconfidence Bias performance. Immediate Choosing alternatives that offer immediate rewards and Gratification Bias avoid immediate costs. Confirmation Bias Seeking out information that reaffirms past choices while discounting contradictory information. Forgetting that current actions cannot influence past events Sunk Costs Errors and relate only to future consequences. Taking Takingquick quickcredit creditfor forsuccesses successesand andblaming blamingoutside outside Self-Serving Bias factors factorsfor forfailures. failures. 43 PART 4 Overview of Managerial Decision-Making 44 PART 5 Guidelines for Making Effective Decisions Understand cultural differences Create standards for good decision-making Know when it’s time to call it quits Use an effective decision-making process Build an organization that can spot the unexpected and quickly adapt to the changed environment 45 Referensi Robbins, Stephen P & Coulter, Mary A. (2017). Management (14th edition). London : Pearson Education. 46  15 Constraints on Managers & Managing Change Manajemen Bisnis Ganjil 2024/2025 1 Learning Objectives PART 1. Contrast the actions of managers according to the omnipotent and symbolic views. PART 2. Describe the constraints and challenges facing managers in today’s external environment. PART 3. Discuss the characteristics and importance of organizational culture. PART 4. Describe making the case for change. PART 5. Classify areas of organizational change. PART 6. Explain how to manage change. PART 7. Describe techniques for stimulating innovation. 2 PART 1 The Manager: Omnipotent or Symbolic? Omnipotent view of management: The view that managers are directly responsible for an organization’s success or failure. Example: Coaches who lose more games than they win are usually fired and replaced by new coaches who are expected to correct the poor performance. Symbolic view of management: The view that much of an organization’s success or failure is due to external forces outside managers’ control. Example: In 1990, Cisco Systems was the picture of success. However, in the early part of 21st century their performance was declined. The symbolic view suggest that this declining performance due to external environment such as the economy, politics, etc. 3 PART 1 Constraints on Managerial Discretion In reality, managers are neither all-powerful nor helpless. But their decisions and actions are constrained. External constraints come from the organization’s environment and internal constraints come from the organization’s culture. 4 PART 2 Components of the External Environment This components also knows as PESTLE framework that focus on scanning business environment. Changes in your business environment can create great opportunities and cause significant threats for your organization. 5 PART 2 The External Environment Factors and forces outside the organization that affect it’s performance. Economic Demographic Political/Legal Technological Sociocultural Global Concerned with Encompasses Concerned with trends in factors such as societal and population interest rates, cultural factors characteristics Encompasses inflation, changes Concerned with Concerned with such as values, such as age, issues associated in disposable federal, state and scientific or attitudes, trends, race, gender, with globalization income, stock local laws, and industrial traditions and education level, and a world market global laws. innovations. lifestyles, beliefs, geographic economy. fluctuations, and tastes, and location, income business cycle patterns of and family stages. behavior. composition. 6 PART 2 Assessing Environmental Uncertainty Environmental uncertainty refers to the degree of change and complexity in an organization’s environment. The first dimension of uncertainty is change. Organizations are stable, minimal change Organizations are dynamic, frequent change The second dimension of uncertainty is complexity. Environmental complexity the number of components in an organization’s environment and the extent of the organization’s knowledge about those components Organizations are complex, lots of components Organizations are simple, minimal components 7 PART 2 How the External Environment Affects Managers Managers have Managers have the greatest the least influence influence in Cell 1 in Cell 4 8 PART 3 Organizational Culture: Constraints and Challenges Just as each individual an organization, too, has a personality, which is referred to as organizational culture. Organizational Culture —The shared values, principles, traditions, and ways of doing things that influence the way organizational members act and that distinguish the organization from other organizations. Strong Cultures—Organizational cultures in which the key values are intensely held and widely shared. 9 PART 3 Dimensions of Organizational Culture For each dimension, we can determine whether it’s high or low 10 PART 3 Strong Versus Weak Cultures 11 PART 3 Where Culture Comes From and How It Continues Organizational Culture usually reflects the vision of the founder. The small size of most new organizations makes it easier to establish organizational culture. Once culture is established, organizational practices help to maintain it. Example: when selecting new employee, we assess whether he/she will fit to our culture 12 PART 3 How Employees Learn Culture organizational stories abut significant events in the life of the Stories company help keep culture alive. repetitive sequences of activities that express and reinforce Rituals important organizational values and goals. Material Artifacts convey to employees what is important and the kinds of and Symbols expected behaviors, ex. Risk-taking, etc. many organizations or units of an organization use language to identify and unite members of a culture. New employees are Language frequently overwhelmed with acronyms and jargon that quickly becomes a part of their language. 13 PART 3 How Culture Affects Manager 14 PART 4 What Is Organizational External and Internal Forces for Change Change? Organizational Change – any alterations in the people, structure, or technology of an organization. Change Agents – persons who act as catalysts and assume the responsibility for managing the change process. 15 PART 5 Types of Change Structure - Changing an organization’s structural components or its structural design Technology – Adopting new equipment, tools, or operating methods that displace old skills and require new ones Automation – replacing certain tasks done by people with machines Computerization People – Changing attitudes, expectations, perceptions, and behaviors of the workforce 16 PART 6 Why Do People Resist Change? The ambiguity and uncertainty that change introduces The comfort of old habits A concern over personal loss of status, money, authority, friendships, and personal convenience The perception that change is incompatible with the goals and interest of the organization 17 PART 6 Techniques for Reducing Resistance to Change 18 PART 6 Changing Organizational Culture Cultures are naturally resistant to change. Conditions that facilitate cultural change: Dramatic Crisis – an unexpected financial Leadership changes setback, the loss of a hands – new top major customer, or a The organization is leadership can Culture is weak. dramatic young and small. provide an alternative technological set of key values. innovation by a competitor. 19 PART 7 Stimulating Innovation Creativity – the ability to combine ideas in a unique way or to make an unusual association. Innovation – turning the outcomes of the creative process into useful products, services, or work methods. 20 PART 7 Stimulating Innovation: Structural Variables An organic-type structure positively influences innovation. The availability of plentiful resources provides a key building block for innovation. Frequent communication between organizational units helps break down barriers. Innovative organizations try to minimize extreme time pressures on creative activities. Studies show that an employee’s creative performance was enhanced when an organization’s structure explicitly supported creativity. 21 PART 7 Stimulating Innovation: Cultural Variables Accept ambiguity – too much emphasis on objectivity and specificity constrains creativity. Tolerate the impractical – what at first seems impractical might lead to innovative solutions. Keep external controls minimal – rules, regulations, policies, and similar organizational controls are kept to a minimum. Tolerate risk – employees are encouraged to experiment without fear of consequences should they fail. Tolerate conflict – diversity of opinions is encouraged. Focus on ends rather than means – individuals are encouraged to consider alternative routes toward meeting the goals. Use an open-system focus – managers closely monitor the environment and respond to changes as they occur. Provide positive feedback – managers provide positive feedback, encouragement, and support. Exhibit empowering leadership – leaders let organizational members know that the work they do is significant. 22 PART 7 Stimulating Innovation: Human Resource Variables Idea champion – individuals who actively and enthusiastically support new ideas, build support, overcome resistance, and ensure that innovations are implemented. High Job Security - offer employees high job security to reduce the fear of getting fired for making mistakes. 23 PART 7 Innovation and Design Thinking Think like a designer With a design thinking mentality, the emphasis is on getting a deeper understanding of what customers need and want. A strong connection exists between design thinking and innovation. 24  16 Global Management Manajemen Bisnis Ganjil 2024/2025 25 Learning Objectives PART 1. Contrast ethnocentric, polycentric, and geocentric attitudes toward global business. PART 2. Discuss the importance of regional trading alliances and global trade mechanisms. PART 3. Describe the structures and techniques organizations use as they go international. PART 4. Explain the relevance of the political/legal, economic, and cultural environments to global business. 26 PART 1 Why Companies Decide to Go Global? Study found that manufacturing firms operating in multiple countries had twice the sales growth and significantly higher profitability than strictly domestic firm Might because of cheaper raw materials and workforce 27 PART 1 What’s Your Global Perspective? Parochialism – viewing the world solely through your own perspectives, leading to an inability to recognize differences between people. Ethnocentric The parochialistic belief that the best work approaches Attitude and practices are those of the home country. The view that the managers in the host country know the Polycentric best work approaches and practices for running their attitude business. Geocentric A world-oriented view that focuses on using the best Attitude approaches and people from around the globe. Manajemen Bisnis Ganjil 2020/2021 28 PART 2 Global Trade: Regional Trading Alliances EU (European Union) a union of 28 democratic European nations created as a unified economic and trade entity with the Euro as a single common currency NAFTA (North American Free Trade Agreement) an agreement among the Mexican, Canadian, and U.S. governments in which certain barriers to trade have been eliminated. ASEAN (Association of Southeast Asian Nations) a trading alliance of 10 Southeast Asian nations. The large differences in wealth among ASEN members have made it difficult to create common standards because national standards remain so far apart 29 PART 2 Global Trade: Global Trade Mechanisms World Trade A global organization of 153 countries that deals with the Organization (WTO) rules of trade among nations. An organization of 185 countries that promotes international International monetary cooperation and provides advice, loans, and Monetary Fund (IMF) technical assistance. A group of five closely associated institutions that provides World Bank Group financial and technical assistance to developing countries. Organization for Economic an international economic organization that helps its 30 Cooperation and member countries achieve sustainable economic growth Development and employment. (OECD) 30 PART 3 Types of International Organizations Multinational Corporation (MNC) – a broad term that refers to any and all types of international companies that maintain operations in multiple countries. Multidomestic Global Company – Transnational or Corporation – An MNC that centralizes Borderless An MNC that decentralizes management and other Organization – management and other decisions in the home country. An MNC in which artificial decisions to the local geographical barriers are country. eliminated. 31 PART 3 How Organizations Go Global 32 PART 3 How Organizations Go Global Global Sourcing – Purchasing materials or labor from around the world wherever it is cheapest. Exporting & Importing Exporting: Making products domestically and selling them abroad. Importing: Acquiring products made abroad and selling them domestically Licensing – An organization gives another organization the right to make or sell its products using its technology or product specifications. Franchising – An organization gives another organization the right to use its name and operating methods. 33 PART 3 How Organizations Go Global (cont) Strategic Alliance – A partnership between an organization and one or more foreign company partner(s) in which both share resources and knowledge in developing new products or building production facilities. Joint Venture – A specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose. Foreign Subsidiary – Directly investing in a foreign country by setting up a separate and independent production facility or office. 34 PART 4 Managing in Global Environment The Political/Legal Environment The Economic Environment Free Market Economy – an economic Managers must stay informed of the system in which resources are primarily specific laws in countries where they do owned and controlled by the private business sector. Some countries have risky political Planned Economy – an economic climates system in which economic decisions are planned by a central government. Currency exchange rates, inflation rates, and diverse tax policies 35 PART 4 Managing in Global Environment The Cultural Environment National Culture – the values and attitudes shared by individuals from a specific country that shape their behavior and beliefs about what is important. Hofstede’s framework for assessing cultures – one of the most widely referenced approaches to helping managers better understand differences between national cultures. Hofstede’s Five Dimensions of National Culture 36 Referensi Robbins, Stephen P & Coulter, Mary A. (2017). Management (14th edition). London : Pearson Education. Manajemen Bisnis Ganjil 2020/2021 37  17 Planning and Goal Setting Manajemen Bisnis Ganjil 2024/2025 1 Learning Objectives PART 1. Define the nature and purposes of planning. PART 2. Classify the types of goals organizations might have and the plans they use. PART 3. Compare and contrast approaches to goal-setting and planning. PART 4. Discuss contemporary issues in planning. Manajemen Bisnis Ganjil 2024/2025 2 PART 1 What Is Planning? Planning : 1) defining the organization’s goals, 2) establishing strategies for achieving those goals, 3) and developing plans to integrate and coordinate work activities Planning is often called the primary management function because it establishes the basis for all the other things managers do as they organize, lead, and control Specific goals Written and Specific plans Formal covering a shared with exist for planning specific time organizational achieving these period members goals Manajemen Bisnis Ganjil 2024/2025 3 PART 1 Why Do Managers Plan? Four reasons for planning Provides direction to coordinate, cooperate, do what it takes to accomplish those goals Reduces uncertainty so managers can respond effectively Minimizes waste and redundancy so inefficiencies become obvious and can be corrected or eliminated Sets the standards for controlling they see whether the plans have been carried out and the goals met Manajemen Bisnis Ganjil 2024/2025 4 PART 1 Planning and Performance Is planning worthwhile? Formal planning is associated with: Positive financial results – higher profits, higher return on assets, and so forth. The quality of planning and implementation affects performance more than the extent of planning. The external environment can reduce the impact of planning on performance. The planning-performance relationship seems to be influenced by the planning time frame Manajemen Bisnis Ganjil 2024/2025 5 PART 2 Goals and Plans Goals (objectives) – desired Plans – documents that outline outcomes or targets. how goals are going to be met. This Photo by Unknown Author is licensed under This Photo by Unknown Author is CC BY-SA licensed under CC BY-SA Manajemen Bisnis Ganjil 2024/2025 6 PART 2 Types of Goals Financial Goals – related to the Stated Goals – official statements of expected internal financial what an organization says, and what it performance of the wants its various stakeholders to organization. believe its goals are. Strategic Goals – related to the Real goals – goals that an performance of the firm relative organization actually pursues, as to factors in its external defined by the actions of its environment (e.g., competitors) members. Manajemen Bisnis Ganjil 2024/2025 7 PART 2 Types of Plans Manajemen Bisnis Ganjil 2024/2025 8 PART 2 Types of Plans Strategic plans – plans that apply to the entire organization and establish the organization’s overall goals. For example, the strategic plan of Egyptian Transport and Commercial Services Company (Egytrans) is to “make integrated transport easy, safe, and cost- effective,” by providing its business customers with world-class transport and logistics services Operational plans – plans that encompass a particular operational area of the organization. The operational plans of Egytrans guide decisions about new products and business units to support the strategic plan Manajemen Bisnis Ganjil 2024/2025 9 PART 2 Types of Plans (cont.) Long-term plans – plans with a time frame beyond three years. Short-term plans – plans covering one year or less. Specific plans – plans that are clearly defined and leave no room for interpretation. Directional plans – plans that are flexible and set out general guidelines. Manajemen Bisnis Ganjil 2024/2025 10 PART 2 Types of Plans (cont.) Single-use plan – a one-time plan specifically designed to meet the needs of a unique situation. For instance, when Walmart wanted to expand the number of its stores in China, top-level executives formulated a single-use plan as a guide Standing plans – ongoing plans that provide guidance for activities performed repeatedly. Standing plans include policies, rules, and procedures As an example, France’s LVMH has a standing plan to handle issues under its ethical code of conduct, which applies to employees and to suppliers Manajemen Bisnis Ganjil 2024/2025 11 PART 3 Approaches to Setting Goals Management Traditional by objective goal-setting (MBO) Manajemen Bisnis Ganjil 2024/2025 12 PART 3 Traditional Goal Setting Traditional goal-setting Challenges – an approach to setting goals in which top Turning broad strategic goals into managers set goals that then flow down departmental, team, and individual through the organization and become goals can be a difficult and frustrating subgoals for each organizational area. process When top managers define the organization’s goals in broad terms— such as achieving “sufficient” profits or increasing “market leadership”—these ambiguous goals have to be made more specific as they flow down through the organization Manajemen Bisnis Ganjil 2024/2025 13 PART 3 Traditional Goal Setting (cont’) Means-ends chain – an integrated network of goals in which the accomplishment of goals at one level serves as the means for achieving the goals, or ends, at the next level. Higher-level goals (or ends) are linked to lower-level goals, which serve as the means for their accomplishment In the traditional approach, planning is done entirely by top- level managers, often assisted by a formal planning department. Formal planning department – a group of planning specialists whose sole responsibility is helping to write organizational plans. Manajemen Bisnis Ganjil 2024/2025 14 PART 3 Management by Objective (MBO) Management by objective (MBO) – a process of setting mutually agreed upon goals and using those goals to evaluate employee performance. MBO programs have four elements: participative goal an explicit performance decision specificity making time period feedback Manajemen Bisnis Ganjil 2024/2025 15 PART 3 Management by Objective and Employee Performance Instead of using goals to make sure employees are doing what they’re supposed to be doing, MBO uses goals to motivate them as well Does MBO work? Studies have shown that it can increase employee performance and organizational productivity How MBO related to employee stress? Manajemen Bisnis Ganjil 2024/2025 16 PART 3 SMART PLANNING Manajemen Bisnis Ganjil 2024/2025 17 PART 3 Contingency Factors in Planning For the most part, lower-level managers do operational Organizational level planning while upper level managers do strategic planning Commitment Concept: Current plans affecting future Length of future commitments must be sufficiently long-term in order to meet commitments those commitments. When uncertainty is high, plans should be specific, but flexible. Environmental Managers must be prepared to change or amend plans as they’re implemented. Uncertainty At times, they may even have to abandon the plans. Manajemen Bisnis Ganjil 2024/2025 18 PART 3 Planning and Organizational Level Manajemen Bisnis Ganjil 2024/2025 19 PART 4 Contemporary Issues in Planning How Can Managers Plan Effectively in Dynamic Environments? – In an uncertain environment, managers should develop plans that are specific, but flexible. – Managers need to recognize that planning is an ongoing process. – Make the organizational hierarchy flatter to effectively plan in dynamic environments Manajemen Bisnis Ganjil 2024/2025 20 PART 4 Contemporary Issues in Planning (cont.) How Can Managers Use Environmental Scanning? – Environmental scanning– screening information to detect emerging trends. – Competitor intelligence – gathering information about competitors that allows managers to anticipate competitors’ actions rather than merely reacting to them. Manajemen Bisnis Ganjil 2024/2025 21 PART 4 Contemporary Issues in Planning (cont.) Digital Tools – Increasingly, we’re finding that companies are making strategic changes based on data, as distinct from day-to-day decisions. – Business intelligence refers to a variety of data that managers can use to make more effective strategic decisions. – Digital tools refer to technology, systems, or software that allow the user to collect, visualize, understand, or analyze data. – Cloud computing refers to storing and accessing data on the Internet rather than on a computer’s hard drive or a company’s network. Manajemen Bisnis Ganjil 2024/2025 22 Referensi Robbins, S. P., Coulter, M. (2017). Management (14th edition). Harlow: Pearson Education. 23  18 Strategic Planning Manajemen Bisnis Ganjil 2024/2025 24 Learning Objectives PART 1. Define strategic management and explain why it’s important. PART 2. Explain what managers do during the six steps of the strategic management process. PART 3. Describe the three types of corporate strategies. PART 4. Describe competitive advantage and the competitive strategies organizations use to get it. PART 5. Discuss current strategic management issues. 25 PART 1 What Is Strategic Management? Strategic management – what managers do to develop the organization’s strategies. Strategies – the plans for how the organization will do what it’s in business to do, how it will compete successfully, and how it will attract and satisfy its customers in order to achieve its goals. Business model – how a company is going to make money. Focus on: 1) whether customers will value what the company is https://inet.detik.com/consumer/d-4265979/kisah- providing and blackberry-tersungkur-karena-meremehkan-iphone 2) whether the company can make any money doing that 26 PART 1 Why Is Strategic Management Important? 1 It results in higher organizational performance. It requires that managers examine and 2 adapt to business environment changes. It coordinates diverse organizational units, 3 helping them focus on organizational goals. 27 PART 2 Strategic Management Process Strategic management process – a six-step process that encompasses strategic planning, implementation, and evaluation. 28 PART 2 Strategic Management Process – Step 1 Component of a mission statement Step 1: Identifying the organization’s current mission, goals, and strategies: – Mission: a statement of the purpose of an organization. The scope of its products and services – Goals: the foundation for further planning. Measurable performance targets 29 PART 2 Strategic Management Process – Step 2 and 3 Step 3: Doing an internal analysis Step 2 : Doing an external analysis – Assessing organizational resources, – The environmental scanning of specific and capabilities, and activities, core general environments. competencies: – Managers do an external analysis so they know, for instance, what the competition is doing, what – Identifying strengths and weaknesses pending legislation might affect the organization, or Strengths create value for the what the labor supply is like in locations where it customer and strengthen the operates. competitive position of the firm. – Focuses on identifying opportunities and Weaknesses can place the firm at threats a competitive disadvantage. SWOT analysis – an analysis of the organization’s strengths, weaknesses, opportunities, and threats, to formulate appropriate strategies—that is, strategies that – (1) exploit an organization’s strengths and external opportunities, – (2) buffer or protect the organization from external threats, or – (3) correct critical weaknesses. 30 PART 2 Strategic Management Process – Step 4,5,6 Step 4 : Formulating strategies – Develop and evaluate strategic alternatives. – Select appropriate strategies for all levels in the organization that provide relative advantage over competitors. – Match organizational strengths to environmental opportunities. – Correct weaknesses and guard against threats. Step 5: Implementing strategies – Implementation – effectively fitting organizational structure and activities to the environment. – The environment dictates the chosen strategy; effective strategy implementation requires an organizational structure matched to its requirements. Step 6: Evaluating results – How effective have strategies been? – What adjustments, if any, are necessary? 31 PART 3 Types of Organizational Strategies 32 PART 3 What Is Corporate Strategy? Corporate strategy – an organizational strategy that determines what businesses a company is in or wants to be in, and what it wants to do with those businesses. Growth Stability Renewal expansion into new maintenance of the status examination of products and markets. quo. organizational weaknesses that are leading to performance declines. 33 PART 3 Growth Strategies Growth Strategy – a corporate strategy that’s used when an organization wants to expand the number of markets served or products offered, through either its current business(es) or new business(es). Because of its growth strategy, an organization may increase revenues, number of employees, or market share Concentration Vertical Horizontal Diversification Integration Integration 34 PART 3 Growth Strategies 1. Concentration focuses on its primary line of business and increases the number of products offered or markets served in this primary business. 2. Vertical Integration 1. Backward vertical integration – the organization becomes its own supplier. For instance, Walmart plans to build a dairy-processing plant in Indiana to supply private- label milk to hundreds of its stores at a lower cost than purchasing milk from an outside supplier 2. Forward vertical integration – the organization becomes its own distributor. For example, Apple has more than 400 retail stores worldwide to distribute its products 35 PART 3 Growth Strategies 3. Horizontal Integration Horizontal integration – a company grows by combining with competitors. For instance, NMC Healthcare, which is based in the United Arab Emirates, recently acquired Al Zahra Hospital in Sharjah 4. Diversification 1.Related diversification – when a company combines with other companies in different, but related industries. For example, Google has acquired a number of businesses (some 150 total), including YouTube, DoubleClick, Nest, and Motorola Mobility 2.Unrelated diversification – when a company combines with firms in different and unrelated industries. 36 PART 3 Stability Strategy Stability Strategy – a corporate strategy in which an organization continues to do what it is currently doing. Examples of this strategy include continuing to serve the same clients by offering the same product or service, maintaining market share, and sustaining the organization’s current business operations. The organization doesn’t grow, but doesn’t fall behind, either 37 PART 3 Renewal Strategies Retrenchment strategy – a short-run renewal strategy used for minor performance problems. Renewal Strategy – a corporate strategy This strategy helps an organization stabilize operations, revitalize organizational resources and designed to address declining performance. capabilities, and prepare to compete once again Managers do two things for both renewal strategies: cut costs and restructure organizational operations. Turnaround strategy – when an organization’s problems are more serious, more drastic action is needed. 38 PART 3 How Are Corporate Strategies Managed? BCG matrix – a strategy tool that guides resource allocation decisions on the basis of market share and growth rate of SBUs. Four Categories 1. Stars: High market share/High anticipated growth rate Heavy investment in stars will help take advantage of the market’s growth and help maintain high market share. The stars, of course, will eventually develop into cash cows as their markets mature and sales growth slows. 1. Cash Cows: High market share/Low anticipated growth rate Managers should “milk” cash cows for as much as they can, limit any new investment in them. 2. Question Marks: Low market share/High anticipated growth rate After careful analysis, some will be sold off and others strategically nurtured into stars 4. Dogs: Low market share/Low anticipated growth rate should be sold off or liquidated 39 PART 4 Competitive Strategies Competitive strategy – an organizational strategy for how an organization will compete in its business(es). When an organization is in several different businesses, those single businesses that are independent and that have their own competitive strategies are referred to as strategic business units (SBUs) Strategic Business Unit (SBU) – the single independent businesses of an organization that formulate their own competitive strategies. For example, GE has different competitive strategies for its businesses, which include GE Aviation (aircraft engines), GE Healthcare (ultrasound equipment), consumer appliances (washers and dryers), and many products in diverse industry sectors. 40 PART 4 The Role of Competitive Advantage Competitive Advantage – what sets an organization apart; its distinctive edge. That distinctive edge can come from the organization’s core competencies by doing something that others cannot do or doing it better than others can do it. For example, Rolls-Royce has a competitive advantage because of its skills at giving customers exactly what they want—a hand-crafted, ultra luxurious automobile, which can be customized to suit unique color, interior, and equipment preferences. Design Quality as a Social Media as Thinking as a Competitive Competitive Competitive Advantage Advantage Advantage 41 PART 4 Sustainable Competitive Advantage with Five Forces Model Five forces determine industry attractiveness and profitability: 1. Threat of new entrants. How likely is it that new competitors will come into the industry? 2. Threat of substitutes. How likely is it that other industries’ products can be substituted for our industry’s products? 3. Bargaining power of buyers. How much bargaining power do buyers (customers) have? 4. Bargaining power of suppliers. How much bargaining power do suppliers have? 5. Current rivalry. How intense is the rivalry among current industry competitors? 42 PART 4 Choosing a Competitive Strategy Two common competitive strategy at the broad market : Cost leadership strategy – when an organization competes on the basis of having the lowest costs (costs or expenses, not prices) in its industry. Differentiation strategy – a company that competes by offering unique products that are widely valued by customers. The third type is : Focus strategy – involves a cost advantage (cost focus) or a differentiation advantage (differentiation focus) in a narrow segment or niche. 43 PART 4 Choosing a Competitive Strategy (cont.) What happens if an organization can’t develop a cost or a differentiation advantage? Stuck in the middle – when costs are too high to compete with the low-cost leader or when its products and services aren’t differentiated enough to compete with the differentiator. 44 PART 4 Functional Strategy Functional strategy – the strategies used by an organization’s various functional departments to support the competitive strategy. For example, when R. R. Donnelley & Sons Company, a Chicago-based printer, wanted to become more competitive and invested in high- tech digital printing methods, its marketing department had to develop new sales plans and promotional pieces, the production department had to incorporate the digital equipment in the printing plants, and the human resources department had to update its employee selection and training programs. 45 PART 5 Current Strategic Management Issues Managers everywhere face increasingly intense global competition and high-performance expectations by investors and customers. Three current strategic management issues: 1. The need for strategic leadership, 2. The need for strategic flexibility, and 3. How managers design strategies to emphasize e-business, customer service, and innovation. 46 PART 5 Strategic leadership Strategic leadership – the ability to anticipate, envision, maintain flexibility, think strategically, and work with others in the organization to initiate changes that will create a viable and valuable future for the organization. 47 PART 5 Effective Strategic Leadership 48 PART 5 Strategic Flexibility Strategic flexibility – the ability to recognize major external changes, to quickly commit resources, and to recognize when a strategic decision was a mistake. Given the highly uncertain environment that managers face today, strategic flexibility seems absolutely necessary! 49 PART 5 Developing Strategic Flexibility 50 PART 5 Important Organizational Strategies for Today’s Environment e-Business strategies – Cost Leadership – online activities: bidding, order processing, inventory control, recruitment and hiring. – Differentiation – Internet-based knowledge systems, online ordering and customer support. – Focus – chat rooms and discussion boards, targeted Web sites. Customer Service Strategies – companies emphasizing excellent customer service need strategies that cultivate that atmosphere from top to bottom. Innovation Strategies First Mover – an organization that brings a product innovation to the market or uses new process innovations. 51 PART 5 First-Mover Advantages and Disadvantages 52 Referensi Robbins, S. P., Coulter, M. (2017). Management (14th edition). Harlow: Pearson Education. 53  19 Organization Design Manajemen Bisnis 2023/2024 1 Learning Objectives PART 1. Describe six key elements in organizational design. PART 2. Contrast mechanistic and organic structures. PART 3. Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design. PART 4. Describe traditional organizational designs options. PART 5. Discuss organizing for flexibility in the twenty-first century. Manajemen Bisnis 2023/2024 2 PART 1 Designing Organizational Structure Organizing – arranging and structuring work to accomplish an organization’s goals. Organizational Structure – the formal arrangement of jobs within an organization. Organizational Chart – the visual representation of an organization’s structure. Manajemen Bisnis 2023/2024 3 PART 1 Purposes of Organizing Manajemen Bisnis 2023/2024 4 PART 1 Designing Organizational Structure Organizational Design – a process involving decisions about six key elements Departmentalizati Chain of command Work specialization on Span of control Centralization and Formalization decentralization Manajemen Bisnis 2023/2024 5 PART 1 Work Specialization Work specialization – dividing work activities into separate job tasks. Early proponents of work specialization believed it could lead to great increases in productivity. However, overspecialization can result in human diseconomies such as boredom, fatigue, stress, poor quality, increased absenteeism, and higher turnover. Manajemen Bisnis 2023/2024 6 PART 1 Departmentalization Departmentalization - the basis by which jobs are grouped together. Functional Product Geographical Process Customer Grouping Grouping Grouping jobs on the Grouping Grouping jobs on the jobs by basis of jobs by jobs by basis of functions product or type of product territory or performed customer customer line geography flow and needs Manajemen Bisnis 2023/2024 7 PART 1 The Five Common Forms of Departmentalization Manajemen Bisnis 2023/2024 8 PART 1 The Five Common Forms of Departmentalization Manajemen Bisnis 2023/2024 9 PART 1 The Five Common Forms of Departmentalization Manajemen Bisnis 2023/2024 10 PART 1 The Five Common Forms of Departmentalization Departmentalization trends: Increasing use of customer departmentalization Increasing use of teams Cross-functional team – a work team composed of individuals from various functional specialties. Manajemen Bisnis 2023/2024 11 PART 1 Chain of Command Chain of Command – the continuous line of authority that extends from upper levels of an organization to the lowest levels of the organization—clarifies who reports to whom. Responsibility – the obligation or expectation to perform. Unity of command – the management principle that each person should report to only one manager. Manajemen Bisnis 2023/2024 12 PART 1 Chain of Command: Authority Authority – the rights inherent in a managerial position to tell people what to do and to expect them to do it. Acceptance theory of authority – the view that authority comes from the willingness of subordinates to accept it. Line authority – authority that entitles a manager to direct the work of an employee. Staff authority – positions with some authority that have been created to support, assist, and advise those holding line authority. Manajemen Bisnis 2023/2024 13 PART 1 Designing Organizational Structure Organizational Design – a process involving decisions about six key elements Departmentalization Chain of command Work specialization Centralization and Span of control Formalization decentralization Manajemen Bisnis 2023/2024 14 PART 1 Span of Control Span of control - the Contrasting span of number of employees control who can be effectively and efficiently supervised by a manager. Manajemen Bisnis 2023/2024 15 PART 1 Centralization and Decentralization Centralization Decentralization The degree to which The degree to which decision-making is lower- level employees concentrated at the provide input or actually upper levels of the make decisions. organization. Employee empowerment giving employees more authority (power) to make decisions. Manajemen Bisnis 2023/2024 16 PART 1 Centralization or Decentralization Manajemen Bisnis 2023/2024 17 PART 1 Formalization Formalization - The degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures. Low formalization Highly formalized means fewer jobs offer little constraints on discretion over how employees what is to be done do their work. Manajemen Bisnis 2023/2024 18 PART 2 Mechanistic and Organic Structures Mechanistic organization Organic organization an organizational design that’s an organizational design that’s rigid and tightly controlled. highly adaptive and flexible. Manajemen Bisnis 2023/2024 19 PART 3 Contingency Factors Affecting Structural Choice Size Technology Strategy Environmental Uncertainty Organization Structure Structural decisions are influenced by organization’s strategy, size, technology and environmental uncertainty Manajemen Bisnis 2023/2024 20 PART 3 Contingency Factors Affecting Structural Choice Strategy and Changes in corporate strategy should lead to changes in an organization’s structure that support the strategy. Structure Certain structural designs work best with different organizational strategies. The organic structure works well for organizations pursuing meaningful and unique innovations. The mechanistic organization works best for companies wanting to tightly control costs. As an organization grows larger, its structure tends to Size and Structure change from organic to mechanistic with increased specialization, centralization departmentalization, and rules/regulations. Manajemen Bisnis 2023/2024 21 PART 3 Contingency Factors Affecting Structural Choice Organizations adapt their structures to their Technology technology. Mechanistic organizational structures tend to be and Structure most effective in mass production (large batch manufacturing). Mechanistic organizational structures tend to be Environmental most effective in stable and simple Uncertainty environments. and Structure The flexibility of organic organizational structures better suited for dynamic and complex is environments. 22 Manajemen Bisnis 2023/2024 PART 4 Traditional Organizational Designs an organizational design with low departmentalization, wide spans of control, centralized authority, and little formalization. an organizational design that groups together similar or related occupational specialties. an organizational structure made up of separate,semiautonomous units or divisions. Manajemen Bisnis 2023/2024 23 PART 5 Flexible Organizational Designs Team Structure Team Structure – an organizational structure in which the entire organization is made up of work teams Matrix-Project Structure Matrix Structure – an organizational structure that assigns specialists from different functional departments to work on one or more projects Project Structure – an organizational structure in which employees continuously work on projects. The Boundaryless Organization Boundaryless Organization – an organization whose design is not defined by, or limited to, the horizontal, vertical, or external boundaries imposed by a predefined structure Virtual Organization - consists of a small core of full-time employees and outside specialists temporarily hired as needed to work on projects 24 Manajemen Bisnis 2023/2024 PART 5 Example of a Matrix Organization Manajemen Bisnis 2023/2024 25 Referensi Robbins, Stephen P & Coulter, Mary A. (2017). Management (14th edition). London : Pearson Education. Manajemen Bisnis 2023/2024 26  20 Organizing Around Team Manajemen Bisnis 2023/2024 27 Learning Objectives PART 1. Define groups and the stages of group development. PART 2. Describe the major components that determine group performance and satisfaction. PART 3. Define teams and best practices influencing team performance. PART 4. Discuss contemporary issues in managing teams. Manajemen Bisnis 2023/2024 28 PART 1 What Is a Group? Group – two or more interacting and interdependent individuals who come together to achieve specific goals. Formal groups Informal groups Work groups defined Groups that are by the organization’s independently structure that have formed to meet the designated work social needs of their assignments and members. tasks. Manajemen Bisnis 2023/2024 29 PART 1 Examples of Formal Work Groups Manajemen Bisnis 2023/2024 30 PART 1 Stages of Group Development Forming Storming Norming Performing Adjourning stage stage stage stage The first stage of The second stage The third stage of The fourth stage The final stage group of group group of group of group development in development, development, development development for which people characterized by characterized by when the group is temporary join the group intragroup close fully functional groups during and then define conflict. relationships and and works on which group the cohesiveness. group task. members are group’s purpose, concerned with structure, and wrapping up leadership. activities rather than task performance. Manajemen Bisnis 2023/2024 31 PART 2 Work Group Performance and Satisfaction Why are some groups more successful than others? The abilities of the group’s members The size of the group The level of conflict The internal pressures on members to conform to the group’s norms Manajemen Bisnis 2023/2024 32 PART 2 External Conditions Imposed on the Group Work groups are affected by the external conditions imposed on it: The Authority Formal rules and Availability of organization’s relationships regulations resources strategy The The general Employee performance physical selection criteria management layout of the system and group’s work culture space Manajemen Bisnis 2023/2024 33 PART 2 Group Member Resources A group’s performance potential depends to a large extent on the resources each individual brings to the group, including: Knowledge Abilities Skills Personality traits Manajemen Bisnis 2023/2024 34 PART 2 Group Structure Role Behavior patterns expected of someone occupying a given position in a social unit. Standards or expectations that are accepted and Norms shared by a group’s members. Groupthink When a group exerts extensive pressure on an individual to align his or her opinion with that of Status others. A prestige grading, position, or rank within a group. The tendency for individuals to expend less effort Social loafing when Group working collectively The degree to whichthan when group working members areindividually. attracted Cohesiveness to one another and share the group’s goals. Manajemen Bisnis 2023/2024 35 PART 2 Group Structure Group Size and Group Performance Small groups are faster than larger ones at completing tasks Large groups consistently get better problem solving results than smaller ones Amazon founder and CEO Jeff Bezos uses a “two-pizza” philosophy; that is, a team should be small enough that it can be fed with two pizzas. Manajemen Bisnis 2023/2024 36 PART 2 Group Process Group Processes - processes that go on within a work group determines group performance and satisfaction, including: Group Decision Making Conflict Management Advantages of group Disadvantages of group Some conflict is necessary for a group to perform decision-making decision-making effectively. More complete Groups almost always Task Conflicts over content and goals Functional information and