Management and Organizations Exam Notes PDF
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University of Western Australia
Talia N Smith
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This document is a set of notes on management and organizations, focusing on concepts like organizational boundaries and management theory. It is useful material for students studying management and related fields.
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lOMoARcPSD|40328849 Managment and organisations - notes Management And Organisations (University of Western Australia) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by Talia...
lOMoARcPSD|40328849 Managment and organisations - notes Management And Organisations (University of Western Australia) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 TABLE OF CONTENTS INTRO.................................................................................................................... 2 THEORY OF MANAGEMENT.................................................................................... 4 THEORY OF ORGANISATIONS – ORGANISATION BOUNDARIES............................... 8 ETHICS & RESPONSIBLE MANAGEMENT............................................................... 12 CSR AND THE ENVIRONMENT.............................................................................. 14 ROBOTS REVOLUTION......................................................................................... 17 THE MANAGEMENT FUNCTION OF CONTROLLING............................................... 19 PLANNING DECISION MAKING AND STRATEGY.................................................... 23 ORGANISING CHANGE AND INNOVATION............................................................ 27 LEADERSHIP........................................................................................................ 30 EXAM................................................................................................................... 34 Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 INTRO WEEK ONE ORGANISATION DEFINITIONS ORGANISATION: a collection of people working together, where the labour or tasks are divided, to achieve a common purpose WHY DO ORGANISATIONS EXIST: - Organisations should provide a product or service to fulfil a social need. - An organisation’s continued existence depends upon this social justification. PURANAM ET AL. QUOTE MARCH AND SIMON’S DEFINITION ORGANISATIONS DEFINITION OF ORGANISATION: are systems of coordinated action among individuals and groups whose preferences, information, interests or knowledge differ. ORGANISATIONS TODAY FOUR KEY INGREDIENTS: Puranam et al. pose that an organisation has four key ingredients: 1. a multi-agent system – more than one person 2. identifiable boundaries – about what can happen, ethics, employment 3. system-level goals (purpose) – goals of the organisations, e.g., goal profit or unit – services sometimes different goals within different levels 4. the constituent agent’s efforts are expected to contribute – every employee has to make a contribution NEW ORGANISATIONS UNIQUE: 1. The division of labour – refers to the breakdown of the organisation’s goals into contributory tasks and the allocation of these tasks to individual members within the organisation 2. The integration of effort – The integration of effort within an organisation requires the resolution of both cooperation and coordination problems (get people to work together through rewards, money, and positions) E.g. uber – solved the problem of division of labour, the driver is a contractor Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 PERFORMANCE: - Custom-orientated view: customers happier than working well, how long they are working, how dominant - Different ways: MANAGEMENT MANAGEMENT: a collection of people working together, where the labour or tasks are divided, to achieve a common purpose. Salyes suggests - Managers are the people in organisations who directly support and help activate the work efforts and performance accomplishments of others. - To ensure everything runs smoothly. MINTZBERG VS FALL FAYOL – four key functions MINTZBERG – four functions far from reality Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 THEORY OF MANAGEMENT LECTURE TWO PRODUCTION TRIGGERS MANAGEMENT inputs from the environment to outputs, control of the process ADAM SMITH’S PIN FACTORY Pin Production without Specialization: 1 person can make 100 pins/day. Pin Production with Specialization (Division of Labour): - Example: 1 person draws the wire, and others perform different tasks. - Five people can produce 1,800 pins/day (1 person = 360 pins). Benefits of Specialization (Adam Smith): - Saves time. - Improves dexterity. - Encourages innovation (technology). - Downside: Repetitive work leads to boredom. Applying Scientific Management to the Pin Factory: 1. Job Design: Develop a ‘science’ for every job (time & motion studies, detailed job specifications). 2. Worker Selection: Choose workers with the right abilities (e.g., people with families, lower- skilled, migrants). 3. Training & Incentives: Train workers carefully and offer bonuses or reduce pay as motivation. 4. Supervision: Provide detailed support and close supervision. 5. Ethical Question: Burawoy (1983) calls this 'Despotic Capitalism'—questioning if the ends justify the means. TECHNICAL CONTROL Production line – people have to keep going otherwise, they slack off, don’t do their job, then don’t work Scientific management and technical control together THEORIES 1. SCIENTIFIC MANAGEMENT seeks to enhance productivity by systematically analysing and optimising work processes (FREDRICK TAYLOR): emphasises four guiding action principles so no one lacks off: 1. Develop a 'science' for each job (standardised processes, work conditions). 2. Select workers with the right abilities (recruitment and selection). Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 3. Train and incentivise workers (manuals, training). 4. Support workers with planned work. 2. BUREAUCRATIC MANAGEMENT Origin: Max Weber. Bureaucratic Organisation: Rational, efficient, based on logic, order, and legitimate authority. Control: Uses rules to define tasks and apply sanctions. Defining Characteristics: - Clear division of labour. - A clear hierarchy of authority. - Formal rules and procedures. - Impersonal. - Careers are based on merit. Example: McDonald’s: Bureaucratic organisation—focuses on efficiency and consistency worldwide through non-human factors, leaving little room for creativity. 3. HUMAN RESOURCE MANAGEMENT – HUMAN PERSPECTIVE Hawthorne Studies: Led by Elton Mayo and Abraham Maslow. Shifted focus from working conditions to group dynamics and productivity. Conducted in a test room, highlighting the impact of group culture on productivity. Hawthorne Effect Explained: - Group atmosphere. - Participative work environment. MASLOW'S THEORY OF HUMAN NEEDS Two Principles: - Deficit Principle: Satisfied needs don’t motivate; people act to satisfy unmet needs. - Progression Principle: Needs follow a hierarchy; higher needs activate once lower needs are satisfied. Problems: - Human needs and motivations are complex, not strictly linear or hierarchical. - Ignores social-political realities and the role of power. Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 TURN TO HR MANAGEMENT AND X Y MANAGEMENT THEORY HRM suggests effective control comes from within individuals, not adherence to strict, authoritarian control. - McGregor’s Theory: Managers should focus more on employees' social and self-actualizing needs. - Theory X: Employees are lazy and avoid work. - Theory Y: Employees are motivated to seek responsibility. - HRM Critique (Cunliffe 2014): While it seems altruistic, HRM's core goal is to improve productivity by controlling employee behaviour. CONTEMPORARY MANAGEMENT THEORIES No single model or theory is universally applicable. Complexity and Variability of People: - Different, changing needs. - Varied talents and capabilities that can be developed. Managerial Response: Adapt to individual differences. NUMMI: Managers were sent to Japan to learn new practices ALGORITHMIC MANAGEMENT Algorithmic Management (AM): Self-learning algorithms making and executing decisions affecting workers. Examples: Uber, Lyft, and Deliveroo rely on algorithms for work allocation, monitoring, evaluation, and rewards. AM Impact: - Less task variety and skill use. - Reduced job autonomy. - Greater uncertainty and insecurity. Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 CRITICAL MANAGEMENT STUDY DE-NATURALISATION: - The existing social order is accepted as "natural." - CMS challenges these assumptions (e.g., management, pay, hierarchy). Giddens (2002): "Thinking ourselves away" (cup of coffee example) ANTI-PERFORMATIVITY: - Mainstream management focuses on ends (e.g., profits). - CMS shifts focus to the means, questioning how results are achieved. - Example: Commonwealth Bank’s $10.16 billion profit raises ethical questions about the impact on employees, management, customers, and society. REFLEXIVITY - Deeper understanding that research is influenced by traditions and biases. - Challenges neutrality and universality in management studies. Tourish (2020): Concern that publications focus on career advancement rather than advancing knowledge. Example: Psychology and Behavioural Economics face a "replication crisis" and data manipulation concerns. Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 THEORY OF ORGANISATIONS – ORGANISATION BOUNDARIES LECTURE THREE GENERAL ENVIRONMENT: dimension of the external environment that affects organisations indirectly TASK ENVIRONMENT: an external environment that directly impacts the organisation’s operations and performance INTERNAL ENVIRONMENT: elements within the organisation’s boundaries GENERAL ENVIRONMENT ECONOMIC the general state of the economy in terms of inflation, interest rates, income levels, gross domestic product unemployment and related indicators of economic health. Unemployment rate – 4 %, GDP – 1.5%, Inflation – 3.8 % (high for the reserve bank), tight labour market atm, harder to get skills SOCIOCULTURAL the general state of prevailing social values on matters such as human rights, trends in education and related social institutions, and demographic patterns. Human rights, trends, education CULTURE CHANGES RECENTLY: - Self-checkout in the shops - More care for the environment – CPSR - No more child labour - More immigration – a more diverse country and more skills - Marriage equality - Aging population POLITICAL Laws, government regulations, and the general state of the prevailing philosophy and objectives of the political party or parties running the government. - What is appropriate for a business to do, business has to do this - Mining tax – Andrew Forest, impacts business E.g. not letting US forklifts, Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 TECHNOLOGICAL the general state of the development and availability of technology, including scientific advancements. - Development and availability of technology - Scientific developments - AI E.g. Spotify, uses another tech to let it work ENVIRONMENTAL the general state of nature and the conditions of the natural environment, including levels of public concern expressed through environmentalism. ECOLOGICAL BOUNDARIES – 9 in total, currently only gone over six boundaries, to live safely, you have to be in a sweet spot to reduce the impact on the environment MANAGERS – If natural environment is stable condition, then human beings and organisation can flourish if no negative consequences THE SPECIFIC OR TASK ENVIRONMENT External environment Includes the people with whom the organisation interacts, ie. Stakeholders INCLUDES: customer, competitors, supplies and labour market ENVIRONMENTAL UNCERTAINTY HIGH UNCERTAINTY INDUSTRIES: - Farming industries - Tourism - Tobacco industries - Logistic industries ie. Political or supplies ACTION ORGANISATIONS CAN TAKE TO REDUCE UNCERTAINTY: Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 - Boundary-spanning roles - Forecasting/planning - Flexible structures - Mergers/joint ventures - Trade associations: lobby the government to look for the interest of the employees - Political activity - Advertising/public activity ORGANISATOINAL BOUNDAIRES are the defined limits that separate an organisation from its external environment EXPRESSED AS: 1. Social structures that collectively make up the organisation 2. Resources or assets owned by the firm 3. Sphere of influence FOUR ELEMENTS OF THE BOUNDARIES: - Efficiency - Power - Competence - Identity VERITICAL BOUNDARIES/INTEGRATION: refers to the level of firm involvement in its product supply chain. E.g. does something at the beginning and end but not in the middle, designs and sells HORIZONTAL BOUNDARIES/ INTEGRATION: how much scope/depth the firm has in the product/markets it addresses. E.g. purchases firms EFFICIENCY BOUNDARIES decisions centre on what is the most efficient governance structure to achieve organisational success. Skills are in-house, control in-house, and other stuff outsourced Should they make the goods themselves or just design, ie? Vertical boundaries: uber focuses on the middle Issues: loss of control shows POWER BOUNDARIES aim to have influence over strategic, important external forces or relationships - To do with the question of ownership and control Power boundary can get too large, Power – boundary becomes messy What Uber has power over in the middle COMPETENCE BOUNDAIRES Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 successful organisation bring in resources and how they do this matching organisational resources with environmental opportunities that are both attractive and amenable to the organisation’s using its resources to gain a competitive advantage Competence boundaries: strategic relates to the internal environment Competency the internal – the circle bits IDENTITY BOUNDARY Who is the organisation? Set to achieve cohesion between the identity of the organisation and the activity. - What they invest in - Power forces - Markets they make E.g. UWA identity affects how they make their decisions, e.g. who they give spots to ATAR. Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 ETHICS & RESPONSIBLE MANAGEMENT LECTURE FOUR WHY STUDY ETHICS - Managers in discretionary decision-making behaviour affecting the lives and well-being of others The more we have to deal with the business, the less confidence we have Quarterly reporting drives discipline but also ‘business myopia,’ i.e. short-termism – THEORETICAL DEBATE POSITION 1 FREE MARKET CRITIQUE: Netwon Freddman – following the rules of the gov, the only other obligation is to make as much money as possible any money spent on social (& environmental) responsibilities is effectively theft from shareholders. POSITION 2 MARXIST CRITIQUE: I agree with the above position, it shouldn’t be a competition capitalism as a system encourages the pursuit of self-interest, creating a structure where people are encouraged to be unethical POSITION 3, A CSR POSITION: Businesses don’t just exist interest the business to be ethical, etc Business is an ongoing practice that needs rules, norms and ethics to function. ETHICS ETHICS: set of standards as to what is good or bad, or right or wrong in a person’s conduct VALUES: are broad beliefs about what is or is not appropriate behaviour that manifest as ‘norms’ (different among different people, what you got brought up with) NORM is a guide to action and defines acceptable and appropriate behaviour in particular situations ETHICAL PARADIGMS 1. UTILITARIAN – greatest good to the greatest number of people (urticaria of wealth – money is different for different people) poor people have more value for money 2. INDIVIDUALISM – what brings people long-term self-interest, Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 3. MORAL – RIGHTS VIEW – ethical behaviour protects the moral rights of people (e.g. rights of people) 4. JUSTICE VIEW – ethical decisions must be based on standards of equity, fairness and impractically (e.g. men and women paid the same) CULTURAL RELATIVISM - there is no one right way to behave; ethical behaviour is determined by its cultural context. UNIVERSALISM - Ethical standards apply across all cultures. TYPES OF ETHICAL PROBLEMS ETHICAL PROBLEMS DIVIDED INTO FOUR TYPES: - Based on the clarity of moral judgement and motivation of decision-makers GENUINE DILEMMA: the ethical decision is complex, and sometimes it is hard to know what the right thing to do NO – PROBLEM PROBLEM: all being sorted out is an ethical dilemma, but being sorted out MORAL LAXITY: is an ethical problem, but nothing has been done about it COMPLIANCE PROBLEM: have a clearly defined problem, and actors have failed to comply why? RESPONSIBLE & IRRESPONSIBLE MANAGEME NT IRRESPONSIBLE MANAGEMENT: involves actions that demonstrate a lack of respect and concern for the wellbeing of others at both the individual and collective level RESPONSIBLE MANAGEMENT: Build sustainable relationships with stakeholders to achieve shared objectives that benefit as many actors as possible. REFLEXIVITY: concerned with questioning your own and other’s assumptions and practices. SIX PRINCIPLES: 1. Purpose: Develop student capabilities for an inclusive, sustainable economy. 2. Values: Emphasize global social responsibility. 3. Method: Enable effective learning for responsible leadership. 4. Research: Advanced understanding of corporate roles in sustainability. 5. Partnership: Collaborate with business managers on effective solutions. 6. Dialogue: Foster discussions among stakeholders on various issues. FIVE DIMENSION BEFORE CHANGE OR BEHAVIOUR OR BETTER ETHICAL: 1. Troublesome Knowledge – new information that appears illogical or unfamiliar as it does not fit your existing knowledge framework. 2. Integrative Effects – this new information makes you rethink your practices 3. Irreversibility – Now you have new information and see connections with existing practices, it is very difficult to return to earlier patterns of understanding. 4. Transformation in Action – threshold concepts make you see the world irreversibly differently; this should create different thinking and change. Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 5. Boundaries – change should lead to a re-evaluation of boundaries CSR AND THE ENVIRONMENT LECTURE FIVE SUSTAINABILITY: encapsulates political, social and cultural as well as environmental and economic concerns, e.g. quadruple bottom line COMMON THEMES OF SUSTAINABILITY: environmental, cultural, ecological, social (dilate the focus of sustainability) CORPORATE SUSTAINABILITY: a business approach that creates long-term shareholder and societal value by considering the social, environmental, and economic impacts of corporate actions. ASSUMPTIONS OF HUMANS & MANAGEMENT & ORGANISATIONS removed from nature in daily life factors start that we separate ourselves from nature GDP QUNANITY: shows the quantity that is being made but not the quality and the consequences of being made TRADITIONAL PROBLEM: simple WICKED PROBLEM: messy, Requires long-term focus TWO APPROACHES WITH DEALING WITH WICKED PROBLEM 1. The traditional approach reflected in Corporate Social Responsibility 2. Operating within planetary boundaries ‘doughnut economics’ CORPORATE SOCIAL RESPONSIBILITY CSR: the obligation of organisation management to make decisions and take actions that will enhance the welfare and interests of society as well as the organisation POLITICAL CSR POLITICAL CSR: an extended model of governance where corporations contribute to global regulation and provide public goods Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 - With the government not doing anything public, pushing companies - Example: Amazon paid zero corporate tax in 2018 and only 1.2% in 2019, despite a US corporate tax rate of 21; Jeff Bezos directed $10 billion to the Earth Fund. - A CRITICAL APPROACH TO CSR RELATES TO BANERJEE - Legal frameworks have created structures where corporations are required to act in the interest of the corporation, not the interest of society. WHAT SHOULD BE HAPPENING - SUGGESTIONS 1. Corporations should think beyond making money and pay attention to social and environmental issues; 2. Corporations should behave ethically and demonstrate the highest level of integrity and transparency in all their operations; 3. Corporations should be involved with the community in which they operate in terms of enhancing social welfare and providing community support through philanthropy or other means. DOUGHNUT ECONOMICS lead to doughnut economics 1. ecological circle 2. social foundation circle the organisation should strive to meet the sweet spot between the two shows as the ‘safe spot’ want to be the closest to the ‘doughnut’ Australia – great social foundation, operates beyond the ecological limits ASSESSING SUSTAINABILITY - CSR - PCSR - Donut WEAK SUSTAINABILITY EXAMPLE: - Woodside claims its emissions have been reduced by 11%. The claim does not include emissions from burning its gas. Emissions went up by 3.5%. An 11% decrease was achieved by buying carbon offsets, not reducing emissions. Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 GREEN WASHING: making your organisation appear green while continuing with business as usual, e.g. coke plant and paper bottle, never happen again (57% of business greenwashing) JEVONS PARADOX: economist, as efficiency solutions to the environment increase, reinvest in improvement or the reduction to the cost associated with efficiency and to use it more or do it more, e.g. transport, loss of cars driving because of electric cars STRONG SUSTAINBILITY: BEDER OUTLINES 3 ENVIRONMENTAL PROTECTION PRINCIPLES: 1. The Precautionary Principle - Response to failures of reactive policy – better to prevent environmental problems 2. The Polluter Pays Principle - Pricing pollution 3. The Sustainability Principle - Systems in equilibrium Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 ROBOTS REVOLUTION WEEK SEVEN Humans will become irrelevant FOURTH INDUSTRIAL REVOLUTION Sometimes known as Industry 4.0 convergence of a wide range of mutually reinforcing digital technologies accompanied by advances in computing power and the ability to network things cheaply. This is generating big data, which is fuelling growth in the development of artificial intelligence (AI), making many complex tasks potentially automatable SMART FACTORY: exhibits production processes supported by digital technologies that connect manufacturing devices, software, robots, warehouses and other equipment and optimise factory operations in real-time, bringing efficiencies to supply chain and inventory management FEAR OR CELEBRATE LUDDITES Anyone who questions or opposes technology When everything is taken over PRAGMATIST The lower number of automation TECHNOPHILES Optimistic view on technology Technology will free us – help us, and create new jobs BOUNDED AUTOMATION refers to the limited use of automation in processes where human oversight or intervention is still required. 1. PRICE OF LABOUR: the price of labour shapes the likelihood of organisations and management investing in technology to replace labour. 2. ORGANISATIONAL POWER RELATIONS: high levels of managerial prerogative and low levels of unionisation or worker’s voice are linked to cheaper labour and precarious work – in short, power and where power lies matter. 3. THE TASK – the human dimension, while automatable, is not accepted by consumers, regulators, and the organisation. Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 ALGORITHMIC MANAGEMENT ALGORITHMS: sets of instructions to solve a problem or complete a task based on various inputs (i.e. data). Giving self‐learning algorithms the responsibility to make and execute decisions affecting workers is called algorithmic management (AM). AM may further entrench power imbalances and biases CHATGPT - offer new opportunities for organisations, but at present, these do not appear to fall into the category of Algorithmic Management. AUTOMATION such as customer service (e.g. resolving customer queries, automated prompts, customer care, etc.) onboarding employees (training; accessing system, user guides, etc.) AUGMENTATION such as drafting content (e.g. email, reports, computer code, marketing materials, etc.) RESPOND Ways to manage REACTION OR LOW-LEVEL RESPONSES: - New York taxi drivers call for a 50-year ban on autonomous vehicles. - Uber has been banned or highly restricted in some countries, e.g. Hungry, Thailand, Japan, Denmark, and the Netherlands. - The human factor - The trend toward artesian, locally sourced, crafted products and services… MORE SYSTEMATIC RESPONSES: - A universal basic income (UBI) - Skills and Training - Creating ethical boundaries and guidelines: o The International Labour Organisation is seeking to create “fair management”, which focuses on how transparent the results and outcomes of algorithms are for workers. Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 THE MANAGEMENT FUNCTION OF CONTROLLING WEEK EIGHT CONTROLLING: the process of measuring performance and taking action to ensure the planned outcomes are achieved. THE PROBLEM OF CONTROL - Organisations require individuals to subordinate their desires to the collective goals. - Achieving larger goals means individuals must surrender some autonomy when participating. - This creates a tension between organisational control and individual autonomy/agency. - Control is problematic because balancing authority and personal freedom is always challenging. STEPS IN THE CONTROL PROCESS CYBERNETIC CONTROL – self-contained in its performance monitoring and correction The management control process involves four steps: 1. establish objectives and standards 2. measure actual performance 3. compare results with objectives and standards 4. and take corrective action as needed TYPES OF CONTROL INTERNAL MANAGEMENT CONTROL SYSTEMS: Preventive controls: decrease the chance of errors before they occur Eg. hierarchical structure, internal approval processes Steering controls: focus on what happens during the work process, e.g. checklists, warning systems Detective controls: designed to find errors after the activity has occurred, e.g. performance revises, inventory checks Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 MANAGEMENT THEORY OF CONTROL Taylor’s Scientific Management: Control and Performance through micro-management, deskilling (breaking tasks down to there simplest form) and time and motion tracking Weber Bureaucratic Management: Control and Performance through ridged rules and standardised processes Human Relations Management: Control and Performance through team-work, social relations and constructing a self-actualisation narrative Hierarchical versus decentralised BLENDED CONTROL STRATEGIES TOTAL QUALITY MANAGEMENT (TQM) A concept that focuses on managing the whole organisation to delivery quality costumers build around 4 key ‘internal’ principles: - Employee involvement - Customer focused - Benchmarking - Continuous Improvement SIMONS’ LEVERS OF CONTROL – IMPORTANT FOR EXAM Control can be about so many different aspects of organisations and management practice, this framework provides a nice introductory overview of some of the key dimensions of control. 1. Diagnostic controls: provide feedback on whether the organization is achieving its stated plan. Measuring and monitoring the activities that lead to strategic success, ensures the organisation is getting these activities done and done right. 2. Boundary systems: identify employee behaviours that may place the organization in jeopardy and then declares these behaviours ‘‘off limits. 3. Belief Systems: Getting employees to have an emotional stake in what the organisation is trying to accomplish. Beliefs explain what the organization stands for and serve to inspire and motivate employees to make a difference 4. Interactive controls; monitor the ongoing validity of the organization’s strategy as the external environment changes. LIMITATIONS: - Doesn’t talk about stakeholders or external info - Only views top management as the only influence, what about middle managers Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 GIG WORK RESEARCH PROJECT GIG WORKERS: engage in short-term, flexible jobs or freelance work, often facilitated through digital platforms or apps EMPLOYEES - High minimum wage $21.38 per/hr - OHS insurance - Unfair dismissal rights - Compulsory pension scheme - Sick leave - Annual leave INDEPENDENT CONTRACTORS - No minimum standards - Use own equipment - Discretion over work hours and how work is done (management not supposed to control work) - Negotiate rate of pay Looks at who was controlling food-delivery workers operating on Uber Eats and/or Deliveroo in Perth and Melbourne RESEARCH 58 intervies with food dlievery workers operating Uber Eats/Deliveroo in Perth and Melbourne Age: Approximately 18-35 year olds Gender: 53 of 58 participants were male 47 of 58 interviewees indicated they were on temporary work, student and working holiday visas English as a second language, nationalities included: Brazilian, Chinese, Columbian, French, Indian, and Malaysian 1. THE IMPORTANCE OF TECHNOLOGICAL INFRASTRUCTURE TO CONTROL - The app is the point or production - Simple control via the app SOPHISTICATED COMPUTER CONTROLS - geo-spatial GPS data - worker-app interactions Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 - ratings by consumers and restaurants WORK APP INTERACTIONS - cancellation rate - acceptance rating RATINGS BY CONSUMERS AND RESTAURANTS: - need to please the customer - ie. Food taking too long 2. INFORMATION ASYMMETRIES CREATE CONTROL Have a request then have to take it, only get certain information later 3. OBFUSCATION OF MANAGEMENT CONTROL SYSTEMS Hide how control is shown, with what the company has over then and what the algrorith has over them ALGORITHMIC MANAGEMENT & FOOD DELIVERY Giving self‐learning algorithms the responsibility to make and execute decisions affecting workers is called algorithmic management (AM). To date, AM impact has been around: - Less task variety and skill use - Reduced job autonomy - Greater uncertainty and insecurity Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 PLANNING DECISION MAKING AND STRATEGY LECTURE NINE DATA DATA: Any quantifiable measured values, observations or statistical counts that, when collated, become useful for decision-making. TO BE USEFUL: needs to be turned into information, that is, raw data tells you nothing, it needs to be organised, contextualised and analysed. USEFUL INFO: Timely, Quality, Complete, Relevant & Understandable DATA ANALYTICS: examining data to find trends and draw conclusions about the information they contain. This has become so crucial to organisations that UWA runs a major in Business Analytics. MANAGER OF INFORMATION AND DATA DECISION MAKING PROGRAMMED DECISIONS: Apply solutions from past experience to a routine problem. NON-PROGRAMMED DECISIONS: Apply specific solutions crafted for a unique problem. DECISION CONDITIONS - Certain environments offer complete information on possible action alternatives and their consequences. - risk environment lacks complete information, but offers ‘probabilities’ of the likely outcomes for possible action alternatives. - uncertain environment lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives. PROCESS: Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 1. DEFINE PROBLEM: talk to people about common mistakes (sometimes define the problem too broadly, focusing on not the root problem, choosing the wrong problem to deal with) 2. GENERATE AND EVALUATE ALTERNATIVE SOLUTIONS: pros and cons of solutions, involve other people to build commitment in organisation 3. SELECT PREFERRED SOLUTION AND CONDUCT ETHICS: have to understand risks and benefits, sometimes people pick the first solution 4. IMPLEMENT THE SOLUTION: give directions and problem-solving, which requires change 5. EVALUATE RESULTS: did you resolve the issue, data analysis, info-seeking 6. If the problem is still there, start the process again THE SCIENCE OF “MUDDLING THROUGH” Lindblom, C. E. (1959). - only works with very simple problems the process above - For complex problems, it is not feasible to conduct a systematic comparison of the various options and their likely outcomes. BEHAVIOURAL INFLUENCES ON DECISION MAKING AVAILABILITY HEURISTIC: Using information ‘readily available’ from memory as a basis for assessing a current event or situation. REPRESENTATIVENESS HEURISTIC: Assessing the likelihood of something occurring based on its similarity to a stereotyped set of occurrences. ANCHORING AND ADJUSTMENT HEURISTIC: Making decisions based on adjustments to a previously existing value or starting point. GROUP DECISIONS: when more than one person makes a decision ADVANTAGES OF GROUP DECISIONS: - Greater information, knowledge and expertise are available - The number of action alternatives examined is expanded, and tunnel vision is avoided - Increased understanding and acceptance of outcomes, increasing member commitment. DISADVANTAGES OF GROUP DECISIONS: - Social pressure to confirm (i.e. groupthink) - Lack of timeliness. PLANNING AND STRATEGY PLANNING: The process of setting objectives and determining how to accomplish them. THE IMPORTANCE OF PLANNING: Used properly, planning is a starting point for further managerial actions: Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 - Organising: allocating and arranging organisational resources to achieve key tasks. - Leading: guiding the organisation’s staff to ensure high levels of task accomplishment. - Controlling: monitoring and assessing task accomplishment and taking corrective action - A plan is a statement of intended means for accomplishing objectives THERE ARE FIVE SEQUENTIAL ACTION STEPS IN THE SYSTEMATIC PLANNING PROCESS: 1. Define your objectives 2. Determine where you stand about objectives 3. Develop premises regarding future conditions 4. Analyse and choose among alternative actions 5. Implement the plan and evaluate the results. STRATEGIC MANAGEMENT STRATEGIC INTENT: Focuses and applies organisational energies on a unifying and compelling goal. STRATEGIC MANAGEMENT: The process of formulating and implementing strategies to accomplish long- term goals and sustain competitive advantage. FIVE STRATEGIC MANAGEMENT TASKS: 1. Identify organisational mission and objectives. Ask: ‘What business are we in? Where do we want to go? 2. Assess current performance about mission and objectives. Ask: ‘How well are we currently doing?’ 3. Create strategic plans to accomplish purpose and objectives. Ask: ‘How can we get where we want to be? 4. Implement the strategic plans. Ask: ‘Has everything been done that needs to be done? 5. Evaluate results; change strategic plans and/or implementation processes as necessary. Ask: ‘Are things working out as planned? What can be improved?’ THE STRATEGIC MANAGEMENT PROCESS STYLES OF STRATEGY CLASSIC: best suited to industries where the environment is reasonably predictable and an organisation has little capacity to change the industry. Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 ADAPTIVE: An uncertain environment with limited capacity to be changed requires a strategy that allows organisations to refine or shift approaches and resources smoothly and quickly SHAPING: best deployed in an environment that has medium to high levels of uncertainty, but critically, you as an organisation have some capacity to shape that environment to your advantage. VISIONARY: the organisation is understood to have the capacity to understand where the environment is headed and has the power to intercept that future PORTER AND GENERIC STRATEGY OPERATIONAL EFFECTIVENESS ‘means performing similar activities better than rivals perform them’ STRATEGIC POSITIONING: on the other hand, ‘means performing different activities from rivals’ or performing similar activities in different ways The strategy formulation process should always consider the following: - cost and quality - knowledge and speed - barriers to entry - financial resources PORTER’S GENERIC STRATEGIES FRAMEWORK A CRITIQUE OF FORMULAIC STRATEGIES EMERGENT STRATEGIES - Develop progressively over time as ‘streams’ of decisions made as managers learn and respond to situations. - Contains an element of ‘craftsmanship’ which is often overlooked by managers, who choose and discard strategies quickly using formal models…’ What’s the latest trendy strategy – that’s our strategy - Incremental/emergent strategic planning helps managers become good at implementing strategies, not just formulating them. Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 ORGANISING CHANGE AND INNOVATION LECTURE TEN ORGANISING: The process of arranging people and other resources to work together to accomplish a goal. ORGANISATIONAL CHANGE KURT LEWIN’S APPROACH TO CHANGE Change and quasi-equilibrium, synth and pattern to a group GROUP DYNAMICS: strongly influence individual FIELD THEORY: emphasised that behaviour is shaped by both the individual and their group environment, making group involvement key to successful and sustained change. MODELS FOR CHANGE FORCE-FIELD ANALYSIS Based on Kurt Lewin’s idea that change is a result of competition between driving forces and restraining forces. CHANGE RESISTANCE Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 OVERCOMING RESISTANCE - A need for change can be developed through creating a sense of urgency. - A need for change is a disparity between existing and desired performance levels (also known as performance gap) - Managers can identify a need for change through SWOT analysis KURT LEWIN'S CHANGE MODEL UNFREEZING: making people aware of a need for change to CHANGING: implementing the change to REFREEZING: Reinforcing new behaviour (celebrate successes and reward positive behaviour to KOTTER’S EIGHT-STEP CHANGE MODEL ORGANISATIONAL SURVIVAL – INNOVATION INNOVATION: significantly improved goods, services, processes or methods process innovations versus product innovation SCHUMPETER’S DEFINITION - Schumpeter was the first person to define innovation in the late 1920s who emphasised novelty. “doing things differently” is the heart of innovation. “An invention is an original or scientific insight, whereas an innovation is something new in practical life: a product, process or service meeting a real demand or need...” DISRUPTIVE INNOVATION Innovation in products, services or processes that change an industry’s rules of the game Eg. uber Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 APPROACH TO INNOVATION AMBIDEXTROUS APPROACH – is about incorporating structures and processes that are appropriate for both the creative impulse and for the systemic implementation of innovations. TOP AND BOTTOM APPROACH: Bottom-up: flower of ideas from lower ideas Top-down approach: flow of ideas from higher levels EXPLORATION APPROACH: - Creativity: The generation of novel and useful ideas that can meet needs or respond to opportunities - Innovation: The implementation of creative ideas - Idea incubator: A mechanism that provides employees the opportunity to innovate without company bureaucracy or politics E.g. Reality TV – Shark TanUWA Innovation Quarter COOPERATION INTERNAL COORDINATION - Several departments collaborate to innovate - Innovation in this setting is like a team sport, e.g., soccer - Poor cooperation of different divisions at Sony to bring an idea (a music player similar to the iPod) before Apple developed it. EXTERNAL COORDINATION: Open innovation: Valuable ideas can come from inside/outside an organisation - Crowdsourcing – human capital (Amazon Mechanical Turk, Upwork, etc., also crowdfunding. Innovation by acquisition: Acquiring small innovative/entrepreneurial firms Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 LEADERSHIP LECTURE 11 ISSUES IN LEADERSHIP The presence of charismatic leadership is reflected in followers who are: - enthusiastic about the leader and his or her ideas - who work very hard to support them - who remain loyal and devoted - who seek superior performance accomplishments. CULT OF THE LEADER: all problems can be resolved by replacing the leader MORAL LEADERSHIP: is always ‘good’ and ‘right’ by ethical standards: WOMEN PROBLEM The evidence supports that both women and men can be effective leaders. - Women managers tend to be significantly more participatory than their male counterparts. - Women may tend towards a style sometimes referred to as interactive leadership. WAYS TO GET OVER ISSUES - Developing Leadership - Mentoring - Support diverse perspectives - Create accountability - Team leadership - Be reflective as a leader - Embracing the long view: WHAT IS LEADERSHIP LEADERSHIP: one of the primary as well as one of the most general forms of association. It arises wherever there are interactions between individuals or groups, no matter what may be the purpose or aims of these interactions LEADING: is the process of inspiring others to work hard to accomplish organisational goals It is one of the four functions that constitute the management process. The other three are: 1. Planning sets the direction and objectives 2. Organising brings the resources together to turn plans into action 3. Controlling makes sure things turn out in the right way. Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 LEADERSHIP, POWER AND MANIPULATION MANIPULATION: This is usually expressed through agenda setting, and it aims at preventing issues from reaching the relevant institutional or political area. DOMINATION: refers to the use of ideology to make relations of power appear ’inevitable’ and ‘natural’ by shaping the subjective and real interests of actors ANTONIO GRAMSCI & HEGEMONY HEGEMONY is a state of relative stability within the dynamic structures and forces of society whereby ‘consent is secured by the diffusion and popularisation of the world view of the ruling class [management?] (Bates, 1975: 352). What does that mean for management, leadership and organisations? - Management prerogative is normalised (leaders make all decisions - Leaders get paid more - Leaders hold rational-legal power - Leadership is about action - Leadership in inherent - Leaders know best POWER SOURCES OF POWER Weber suggests power comes from three fundamental sources: - Charismatic Power - Traditional Power - Rational-Legal Power POWER POSITIONS REWARD POWER: is the ability to influence through rewards. ‘If you do what I ask, I’ll give you a reward.’ COERCIVE POWER: is the ability to influence through punishment. ‘If you don’t do what I want, I’ll punish you.’ LEGITIMATE POWER: is the ability to influence through authority. ‘I am the boss, and therefore you are supposed to do as I ask.’ WEBER: capacity of a person or group to “realise their own will in a communal action even against the resistance of others who are participating in the action PERSONAL POWER BASES OF PERSONAL POWER: - Expert power is the ability to influence through special expertise. Other people recognise your knowledge, understanding and skills. E.g. Forensic scientists in a courtroom Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 - Referent power is the ability to influence through identification. Other people admire you and want to identify positively with you. Power is derived from charisma or interpersonal attractiveness. POWER AND POSITION Position power is likely to lead to only temporary compliance. Position power alone is often insufficient to achieve and sustain influence. - The use of expert and referent power creates the most enduring influence and commitment. - Expert and referent power often make the difference between leadership success and mediocrity. SERVANT LEADERSHIP EMPOWERMENT: Process through which managers enable others to gain power and influence in the pursuit of wider success. HOW COULD MANAGERS EMPOWER EACH OTHER? 10 characteristics: Listening, Empathy, Healing; Awareness, Persuasion; Conceptualisation; Foresight; Stewardship; Commitment; Building Community PERSONAL TRAITS Behavioural theories of leadership sought to determine which leadership style worked best. LEADERSHIP STYLES: The recurring pattern of behaviours exhibited by a leader. THE TWO DIMENSIONS OF LEADERSHIP: concern for the task to be accomplished and concern for the people doing the work. Truly effective leaders are high in both concern for people and concern for tasks. TERMINAL VALUES: Desirable end states of existence, Goals a person would like to achieve during lifetime INSTRUMENTAL VALUES: Preferable modes of behaviour, Means of achieving one’s terminal values VALUES AND LEADERSHIP Importance for Leaders - Values are the foundation of attitudes & motivation - Values influence perceptions - Values influence behaviour Values shape the type of leader you are Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 BLACK AND MOUNTAIN MANAGERIAL GRID Theory of leadership IMPORVRISIMIZED MANAGEMENT: 1,1 bare min don’t need to be that good of a leader, e.g. for fast food COUNTRY CLUB MANAGEMENT: only care about people not that focused on the business and the production two production, 6 people AUTHORITY COMPLIANCE: all about efficiency, and the most amount of production, 8 production, 2 people TEAM MANAGEMENT: high concern for people and production, peak humanistic HR people, align the interest of employees with the company, 8,8 MIDDLE OF THE ROAD MANAGEMENT: 6,4 middle is not the most focused on either Downloaded by Talia N Smith ([email protected]) lOMoARcPSD|40328849 EXAM MULTI CHOICE: 40 questions = 20 marks CASE STUDY/EXTENDED ANSWER: two questions Approx. 1-2 pages for each Fully formed paragraphs that are logically arranged, i.e. introductory sentences, key supporting sentences, concluding sentence Make sure to use the theory FOCUS REVISION: Week 8 ‘controlling’ and week 11 ‘leadership’ Downloaded by Talia N Smith ([email protected])