Organization Management PDF

Organization Management Assoc. Prof. Eng. Elena FLEACĂ, Ph.D., PMP Management of Digital Enterprise Course topics ✓ I Module I. Understanding ORGANIZATION MANAGEMENT ✓ II Module II. Behavior within Organizations ✓ II...

Organization Management Assoc. Prof. Eng. Elena FLEACĂ, Ph.D., PMP Management of Digital Enterprise Course topics ✓ I Module I. Understanding ORGANIZATION MANAGEMENT ✓ II Module II. Behavior within Organizations ✓ III Module III. The Structure and Design of Organizations ✓ IV Module IV. The Processes of Organizations  Module 1. Understanding ORGANIZATION MANAGEMENT - overview Learning objectives: What are organizations? What is the nature of managerial work? Which are the three approaches to effectiveness? What is the model for Organizational Effectiveness? What are organizations? Organization: an entity that enable people to pursue accomplishments that cannot be achieved by individual acting alone. a coordinated unit consisting of at least two people who function to achieve a common goal/set of goals. The expectations of customers are changing organizations must be prepared to deal with: consumer needs for social responsibility, good citizenship, and responsible management and leadership. To better understand the people and employees behavior  to formally study people, structures, and processes in relation to organizations. Your own footer Your Logo Organizations – as a sum of individuals  Organizational behavior follows the principles of human behavior: different capabilities for learning and for handling responsibilities different ethnic backgrounds, different attitudes, beliefs, aspiration levels or expectations. Managers have to be aware of these diversities and take actions, accordingly.  Organizations are social systems: the relationships among individuals and groups  expectations for individuals behavior  results in certain roles that must be performed:  leadership roles based on systems of authority, status and power;  followers roles meaning to put in place the tasks. Groups in organizations have a powerful impact on individual behavior and on organizational performance. Your own footer Your Logo What are organizations?  The structure: a blueprint that indicates how people and jobs are grouped together in an organization, being represented by an organization chart.  The Processes: activities that give life to an organizational structure common behavioral processes are communication, decision making, and organization development. Every organization must respond, at least to: the needs of its customers, the legal and political constraints, and the economic and technological changes. Your own footer Your Logo  The organization – a synoptic view The Structure Behavior in Processes of and Design of Organizations Organizations Organizations The Individual Groups Job Design Organizational Design Communication Decision Making · Individual · Group behavior · The structure of characteristics · Communication · Group Conflicts · Work content tasks · Decision types · Individual model · Power & · Work method · Span of control · Decision process motivation · Directions of Interpersonal · Work relationships · Delegation of · Social responsibilty · Rewards and communication Influence authority Appraisals This is our journey during the course! Your own footer Your Logo BEHAVIOR in organization  The individual: the foundation, and understanding his/her thoughts, beliefs and needs is the key toward accomplishing high work performance.  Individual characteristics: learning to manage human diversity in terms of attitudes, perceptions, personality, values, and individual performance.  Individual motivation: Shape the ability to work and interact each other various theories attempt to explain and predict people behavior, and how is sustained and stopped. the complexity of motivation  impossible to clearly say what the best theory of motivation is.  Rewards and Appraisal: the most powerful influences on individual performance footer Your own it can increase performance or can attract skilled employeesYour inLogo organization.  BEHAVIOR in organization  The group: By being part of groups, humans comunicate and exchange the beliefs and values, and will accomplish their needs and aspirations.  Group behavior: group created by managerial decisions based on assigned jobs and tasks – formal groups groups formed as a consequence of employees’ actions - informal groups.  Group conflict and power: any group creates its own culture and develops an unique set of characteristics: structure, cohesiveness, roles, norms and processes. groups may cooperate and compete with other groups, and this Your Logo competition can lead to conflict.  BEHAVIOR in organization  The group: By being part of groups, humans comunicate and exchange the beliefs and values, and will accomplish their needs and aspirations.  Power and interpersonal influence: the ability to get someone to do something you want done to make things happen in a way you want them to happen means to control other people.  Interpersonal influence: power in action, using different sources to influence the others people, team members or subordinates. Your Logo  THE STRUCTURE & DESIGN of organization  To achieve organizational effectiveness, managers have to clearly understand organizational structure: jobs, as piece of work, and structure, as the configuration of all pieces of work.  Job Design – the process by which managers specify the contents, methods of work, and relationships to both satisfy organizational and individual performance.  Organizational Design - the process by which managers create new structure of tasks, lines of authority, and interpersonal relationships toward improving the working performance. Your Logo  THE PROCESSES of organization  The processes give life to the organizations: a sequence of activities performed with the aim to transform different inputs into outputs, by adding value. ORGANIZATION SYSTEM MANAGEMENT PROCESSES Inputs BEHAVIORAL Outputs Human Resources PROCESSES Products & Services Technical Resources Profit & Loss Information Information Financial Resources TECHNICAL Social Responsibility Technology and PROCESSES Behaviours know how Customer satisfaction SUPPORT PROCESSES Feedback Your Logo  THE PROCESSES of organization Management processes assure the coherent functioning of the organization, based on the well-known circle Plan Do, Check, Act. Behavioral processes assure the effective organizational performance: communication and decision making process. Technical processes are in charge with transformation of raw materials into finite products. Support processes help technical processes to fulfill their objectives: marketing, logistics, human resources, legal, etc. Your Logo  Behavioral processes in organization  Communication process: The survival is related to management ability to receive, transmit, and act on information links the organization to its environment, as well as to its parts. Information integrates the activities within the organization.  Communication model – answers to five simple questions:  Who?, ……  To Whom?, ……  What is to be transmitted?, ……..  In What way?, …..  With what effect? ………  Directions of communication –downward and upward communication, horizontal and diagonal communication. Your Logo  Behavioral processes in organization  Decision making process: is a key process due to its consequences on people’s lives and well- being ethics and social responsibility behavior play a crucial role in managerial decisions. difficult endeavor because managers must evaluate their decision on what course to follow as: good or bad, right or wrong, ethical or unethical  conflicts arise between manager’s personality, core values and the culture and value of the organization. The key challenges for managers - to create an working environment that is ethical, value centered, and performance driven. Your Logo  What is the nature of managerial work?  The necessity for managing arises whenever work is specialized and undertaken by two or more persons  the specialized work must be coordinated, creating the necessity for managerial work. The Classical School of Management points out the 4 functions of management which are performed with the aid of related processes:  Planning  Organizing  Leading  Controlling with the aims to obtain the organization effectiveness.  Effectiveness = is the capability of producing a desired result, Your Logo  What is the nature of managerial work?  In order to achieve the overall performance effectiveness, managers have to Plan, Organize, Lead, and Control effective Performance at three levels: individual, group, and organizational. EFFECTIVENESS Coordination the work of: Individual Managerial Aims · Individuals Effectiveness work · Groups Group · organizations Effectiveness Organizational Effectiveness FUNCTIONS · Planning · Organizing · Leading · controlling Your Logo  What is the nature of managerial work?  Planning Effective Performance defining the ends/goals to be achieved and determining appropriate means to achieve these can be complex/simple, implicit/explicit. Specific activities for planning:  Define the results/goals/ends  Determine different course of actions  Compare alternatives according to criteria established  Choose the best way to action ( cost-benefit analysis).  Organizing Effective Performance translates required planned activities into a structure of tasks and authority the main out of this function is called Organization Structure. Specific activities for organizing:  Design each job by defining the responsibility and authority levels  Group jobs into units, called departments, based on different criteria  What is the nature of managerial work?  Leading Effective Performance: day-to-day contact with individual and groups leading is uniquely personal and interpersonal; leading is the most human oriented people are different and have unique needs, personalities, attitudes, and wants manager has to direct them toward common purpose.  Controlling Effective Performance activities that ensure the actual outcomes are consistent with planned outcomes. is the completion of a logical sequence, in 2 steps:  Whether the intended results were achieved?  If they aren’t achieved, why not?  The planning function was faulty?  The organizing function was faulty? involves the performance (comparing actual performance against standards of performance) evaluation at three levels: Individual, Group, and Organizational performance evaluation  What is the nature of managerial work?  The Henry Mintezberg managerial roles or organized sets of behavior. Leader Liaison Figurehead INTERPERSONAL Roles Negociator INFORMATIONAL Roles Managerial Roles DECISIONAL Roles Resource Allocator Monitor Spokesperson Entrepreneur Disturbance Handler Disseminator  What is the nature of managerial work?  The Henry Mintezberg managerial roles or organized sets of behavior. Derived directly from the managers formal authority granted Interpersonal Roles by the organization 1. The Figurehead role Representing the organization by showing the flag Influencing or directing others by translating the authority into 2. The Leader role actual activities The contacts with those outside the formal authority chain of 3. The Liaison role command such as customers, suppliers, government officials, etc. Builds on the interpersonal relationships and underlines the Informational Roles importance of building the contacts network Engaging in seeking information to keep aware of circumstances 1. The Monitor role that may affect the unit/organization 2. The disseminator Receiving information and enabling access to others role 3. The Spokesperson Representing the views and opinions of the unit for which he/she role is responsible (internal and external representation)  What is the nature of managerial work?  The Henry Mintezberg managerial roles or organized sets of behavior. Relates to decision-making requirements of the manager’s Decisional roles job Engaging in activities that explore new opportunities or starts 1. The entrepreneurial new projects based in an ongoing assessment about whether to role continue or abandon new ventures 2. The disturbance Acting as a problem – solver or conflict settler to keep small handler role problems form developing into larger ones 3. The resource allocator Deciding how resources under his/her authority will be role distributed; with direct effect on units performance Making accommodations with other units or other organizations 4. The negotiator role by being aware of what resources can or cannot be committed to particular negotiated solutions.  What is the nature of managerial work?  What skills do managers need? Conceptual Skills Technical Skills Interpersonal Skills Top management Middle management Lower management  What is the nature of managerial work?  What skills do managers need? Managerial skills Description · Cognitive ability such as logical reasoning, judgment, and analytical ability Conceptual skills · Are predictor of managerial effectiveness and determines who reach the highest level in organization · Specialized knowledge about processes, procedures, Technical skills and equipment · Are very important early in managerial career · Sensitivity, persuasiveness, and empathy are very important at all levels of management Interpersonal skills · These skills alone are unlikely to guarantee significant achievements  Which are the three approaches to effectiveness?  Goal approach: the oldest and the most widely used evaluation approach: organizations exist to accomplish goals  individuals and groups should be evaluated in terms of goal accomplishment. reflects purposefulness, rationality, and achievement, the fundamental tenets of western societies.  Management by objectives is based on goal approach: specify in advance the goals, the subordinates accomplish and they are evaluated periodically the degree to which they accomplish them.  Problems with goal approach: Hardly to measure for organization that does not produce tangible results Eg. For university the goal is to provide a good education at a fair cost  How would we know whether the university reaches the goal? What is a good education? What is the fair cost?  Which are the three approaches to effectiveness?  Problems with goal approach: Goals cannibalization: achieving one goal often diminishes the capability to achieve other goals Eg.: the goal to maximize the profit and provide absolutely safe working conditions create conflicts because one goal is achieved at the expense of the other. It is easy to understand that managers should achieve organizations goals, but it is hardly difficult to know how to do this. The system theory approach enables managers to understand the effectiveness concept holistically, by understanding the causes of: individual, groups, and organizational effectiveness.  Which are the three approaches to effectiveness?  System theory approach System – a group of elements that individually establish relationship with each other and interact with their environment both as an individual as a collective. Conceptual systems (language is a concept with words and rules) Concrete systems – equipment, machines, etc. Abstract systems – the culture of an organization, the processes inside PROCESSES INPUTS INPUTS · Human · Manufacturing · Information · Decision making · Products · Financial · Marketing · Services · Equipment · logistics Feedback loop Environment  Which are the three approaches to effectiveness?  By viewing the individuals, groups, processes, and structures of organization in terms of a system,  identify common and uncommon themes that explain the behavior and effectiveness of people.  There are two important aspect related to system theory:  Feedback loop :  The organization depends on the environment not only for its inputs but also for the acceptance of its outputs (eg. Market research to find out the wants from the market).  The feedback reinforces the learning and developing personality, group behavior, and leadership.  Input-output cycle – there are two major type of inputs resources: Human resources: people who work in the firm in exchange for wages and other tangible or intangible rewards Technical resources (Non-human): inputs to be processed in combination with human resources to produce outputs (other resources).  Which are the three approaches to effectiveness? The Inputs Processing Outputs environment Technical and administrative Steel, rubber, The market Staff plastics Technological Manufacturer Cars buy or do not Engineers Equipment processes buy the cars Management IT Tools team Performing research, The Laboratories, Teaching Teachers, businesses books, students University administrative Engineers accept or software, Providing staff reject the technical students information to society Hospital …… …… ….. …. …  Which are the three approaches to effectiveness?  Key aspects of system theory: 1. The survival of organization depends on its ability to adapt to the demand of its environment 2. The inputs-process-output cycle must be the focus of managerial attention.  Which are the three approaches to effectiveness?  Stakeholder approach to achieve balance among different parts of the system by satisfying the interests of the organization stakeholders Stakeholders - all individuals or groups who have a stake in the organization. emphasizes the relative importance of different groups and individuals interests in an organization. Stakeholder Balancing stakeholders interests approach INPUTS PROCESSES INPUTS System Theory Various stakeholders Various stakeholders Various stakeholders Feedback loop Environment  Which are the three approaches to effectiveness?  Types of stakeholders: Employees, managers, customers, suppliers, contractors, creditors, department managers, public, officials etc. each of these entities has an unique interests that form an amount of different interests  Pay attention to : The stakeholder controls resources that are valuable to the organization  To whom interest should we satisfy first? The organization is effective to the extent that it satisfies the interest of the group controlling the most important resources Different groups negotiate their claims by developing coalitions capable of combining the power of each member of the coalition. Managers have to identify the most powerful coalitions and satisfy the demands of the most influential members of these coalitions. This decision depends on the value judgment. Value judgment reflects human value about what is important, but these judgments shift with individual, place, and time. What is the model for Organizational Effectiveness? Management processes Sources of Effectiveness Planning Individuals Groups Organizations Organizing · Objectives · Goals · Mission · Job desing & structure · Department structure Leading · Processes · Person – centered · Group – centered · Entity – centered influence influence influence · Organization standards of · Individual standards of · Group standards of performance Controlling performance performance Bibliography 1. Peter Drucker, Management Challenges for the 21st Century, Harper Collins, New York: Harper Business, 2001. 2. Andrew J. Dubrin, Essentials of Management, 9th Ed., South – western Publishing, Mason, 2012. 3. Robert Konopaske and John M. Ivancevich, Global Management and Organizational Behavior, New York: McGraw Hill/Irwin, 2004. 4. Michael C. Jackson, System Approach to Management, New York: Kluwer, 2000. 5. Henry Mintzberg, The Nature of Managerial Work, Englewood Cliffs, New York: Prentice Hall, 1980. 6. Stephen P. Robbbins, Timothy A. Judge, Organizational Behavior, 15th Ed., Prentice Hall, 2012. 7. J. Gibson, Jh. Ivancevich, J. Donnelly, R. Konopaske, Organizations. Behavior, Structure, Processes, 14th Ed. , New York: McGraw Hill/Irwin, 2014. 8. Michael A. Hitt, J. Stewart Black, Lyman W. Porter, Management, International Edition, Pearson Prentice Hall Publishing, New Jersey, 2005. 9. MacClelland DC, The Achieving Theory, A Free Press Paperback, New Your Logo York: Macmillan Publishing Co., 1967.