Tobu Notes - Lectures

Lectures ======== 05.12.2024 1.2 Lecture: Structure --------------------------------- *"An organizational structure defines tasks, authorities and responsibilities and sets out the pattern of relationships between positions."* 1. Cost factors - efficiency: cost benefit ratio 2. Managerial fact...

Lectures ======== 05.12.2024 1.2 Lecture: Structure --------------------------------- *"An organizational structure defines tasks, authorities and responsibilities and sets out the pattern of relationships between positions."* 1. Cost factors - efficiency: cost benefit ratio 2. Managerial factors -- vision towards people and work 3. Societal motives -- e.g., health, sustainability, safety, etc. (what can people do, are they available to work in a certain way) 4. Individual factors -- attractiveness of work: using human qualities to achieve organizational goals (so the division of work is done based on what the individual is willing to do. **Functionalism** Who decides and who is responsible? - Job level - Tasks - Authorities and responsibilities - Organizational level:(de) centralization? (more responsibility is given to the employees so some things they can decide by themselves) - **Authority** has *the right to make decisions necessary to perform a task.* - **Responsibility is the moral obligation to perform a task to the best of your ability and to report back concerning its progress.** - **Delegation** is *the handing over of tasks to others, together with the associated authority and responsibility.* In a line organization, all LINE departments contribute to its existence. So, making money. What also matters is how "flat" the company is, this means if everyone is casual to each other or if there is a clear hierarchy. **Communication between** organization members of different **departments or divisions** and at different hierarchical levels is captured within a meeting / consultation structure. The linking PIN structure of LIKERT - Flow of information downwards and upwards (and horizontal) - 1 employee/manager forms the connection between the different departments - This leads to better decisions, less miscommunication, better performance. **Span of control** is the number of subordinates a manager effectively manages (those who have been delegating tasks need to be managed). *The horizontal dimension (span width)* is the number of direct subordinates a manager supervises. *Vertical dimension (depth of control)* is the number of levels affected directly or indirectly by a manager. **Span width** is mainly determined by: - The manager's qualities - The quality of employees - The nature of the organization - The nature of the work - The character of the job - Organizational structure  09.12.2024 2.1 Lecture: Processes and Quality --------------------------------------------- Process is *a systematic series of activities focused on reaching a certain goal. It is a combination of activities that use a certain input to create an output that offers added value to its end user (the customer).* Processes that take place at McDonald's: - Taking orders inside the building - Taking orders at the Drive Thru - Composing orders - Preparing hamburgers, French fries, etc. - Cleaning - Buying meat - Composing the menu/assortment list  **Three types of processes** - **Primary processes** are all activities that contribute directly to the making of the product or service and to the overall goal of the organization. This is the process by which an organization earns its money. - *Example: Creating a trip for the customer* - **Secondary (supporting) processes** are all activities that support the primary process, such as management of personnel, finances and data systems. These processes aren't a goal as such. These processes ensure that the primary process can take place. - *Example: Hiring staff that create trips for the customer, buying computers for staff* - **Administrative processes** are all activities that direct the primary and secondary process and help to reach the organization's goals. - *Example: selection of strategy, structure, process control* *A pit-stop process*  - **Process control** is the realization of pre-set goals and norms, for example a certain level of quality, a consistent similar quality, a maximum in errors or even no errors. - *To which a poor process control may lead, including disastrous consequences (it influences the quality of your product so the happiness of the customer)* - **Process improvement** is higher quality, with lower costs and higher efficiency. - *How to continuously improve quality? Application of quality systems.* - *Reduction in waste (e.g. less motion, inventory, transport)* - *Faster and lower costs* - *Same customer value* - **Re-designing processes** (Business Process Re-engineering) are higher quality, with lower costs and higher efficiency, radical changes possible (the way and the steps you take to get there are different) - *Re-designing company processes to enhance customer value* - *May lead to fundamentally and radically organized processes \> which may have big implications for the organization.* **Lean Management** (improving a process) - Knowing what your customer wants \> how do they define the quality of your product/service (what is their 'added value'?) - Preventing waste (examples): - Making the product/service 'too perfect' (overprocessing) - Errors in production (re-doing a process) - Transport in between product fazes and employees - Waiting in between production/services **From improving to re-designing** - Customer demands increase and change (customer focus) - Developments in the near surroundings (e.g. technical and competition) - Existing processes are no longer sufficient: re-design is imminent and needed. Still with a similar aim: higher quality against lower costs 13.12.2024 3.1 Lecture: Leadership & HRM ---------------------------------------- A **manager** is *a person who is responsible for triggering and steering the actions of other people in an organization.* - Activities: - Functional manager: responsible for 1 activity (sales etc.) - 'General' manager: responsible for all activities (sales, marketing, finance etc.) - Levels - Classical organization: Top \> Middle \> Lower management - Modern organization: Top \> Middle management **Trends:** - Organizations getting less management levels (and managers) - Coaching and giving the employee "space" instead of "controlling" - A shift from functional to "general" managers - Agile leadership **Leadership style** is the way in which a manager/leader influences subordinates and uses their power to reach certain company goals, and how. **Power** is *the ability to let people behave according to the rules and goals of others of which they don't see them as necessary for themselves and might even be in conflict with their own gains or values.* **The most important theories concerning leadership (management)** - **Based on involvement** (influence and 'say') - Authoritarian, participating, democratic - Laissez faire, charismatic -  - **X-Y theory of Mc Gregor** - X: The manager thinks that humans don't like to work and want to avoid it - Y: The manager thinks that humans like to work and are capable to identify itself with working - - Situational leadership (Hersey & Blanchard) - Leaders apply different styles based on task maturity of the employee -  - Transformational leadership - Self-leadership **7 golden tips for leaders/managers:** - Give as much own responsibility as possible - Give/create challenging tasks - Create opportunities for success - Reward in accordance with the achievement - Encourage self-assurance - Work systematically on the improvement of the company pride - Be generous with compliments **Human resources management (HRM)** is all activities aimed at *inflow, flow through and outflow* of employees. Human capital is the most important factor in an organization. **Steps in the process of recruitment:** - Planning - Analyzing tasks - Targeting - Recruitment-channel - Selection - References/assessment - Job conditions conversation **Flow through**  **Planning/Performance review** **Appraisal interview** ------------------------------------------------------------- ----------------------------------------- Conversation is key point Result is key point Employee is active Employee is passive Aimed at the future based on functioning in the present job Assessment about the past period (year) Two-sided conversation One sided conversation Focus on development Focus on control Recording agreements Recording assessment (+/-) **Supervisor as coach** **Supervisor as assessor** The assessment can be done on: When the assessment comes as a total surprise, the manager/supervisor did not do his job in a good manner. **Outflow** (terminate the contract of employment) - Voluntarily by employee - The end of the temporary contract (after a max. of 2 years) - Discharge (at once, non-functioning, reorganization) 07.01.2025 4.1 Lecture: Motivation & Culture -------------------------------------------- Two types of motivation in a company: - **Intrinsic motivation** is related to the job itself; the people think that the job is a challenge and because of their curiosity and their wanting to learn and master their job, they get motivated. - **Extrinsic motivation** is related to external circumstances, like do they get rewards for the job, or whether the circumstances for this job are good or not (rewards, working conditions, status etc.)  Management tools to motivate employees: 1. **Financial incentives.** These can be fixed or variable such as a bonus, shares, fringe benefits or individual/team benefits. The disadvantage to this is that it\'s short term & not a primary motivator. 2. **Task design**. This can be task enrichment (two tasks, defined level of responsibility), task enlargement (more tasks, same level of responsibility) or task rotation (same number of tasks, greater responsibility in each OR different tasks), by this the employee can further expand his skills in the job. 3. Setting high objectives. This means that objectives will lead to effort & commitment, there will be more communication and alignment between employees. This must be an S.M.A.R.T objective. **Vitality** *is the overall health, resilience, and ability of an organization to adapt, innovate, and thrive in a dynamic and competitive environment.* Vital employees ensure less absenteeism, more involvement, higher work ability, fewer security incidents. So, more energy, motivation and resilience. The barrier between personal life and professional life is often being invaded by each other, employees more often feel overloaded, and this can cause a lot of stress for a company. Employees can experience burn-out (happens more often when employees interact a lot with people.) Three distinct approaches: 1. **The organizational approach** where you look at the company itself and if anything can be changed to make sure that the level of stress will decrease. Maybe training your management to coach people more on the job or making it less money oriented. 2. **The individual-direct approach** where you look at the employee itself and if you can decrease the stress this individual is experiencing. Maybe sending an employee to a training for time management or training them to be more assertive. 3. **Handling and managing stress** where you don\'t change the job of the employees, but you teach them how to cope with it more. Maybe making sure they do sports since sports people are less stressed out. Culture is what people do, what people think, and what they share. Culture of McDonald\'s: - People-centricity - Individual learning - Organizational learning - Diversity and inclusion As a manager you want to influence how your people act (or think how they should act). In other words, you want to influence culture. Cultural change is part of the management\'s job, it is a need for understanding and it\'s not very tangible. - **Task culture** focuses on teamwork and solving specific problems. Teams are formed for tasks, relying on expertise and collaboration, with authority based on competence rather than hierarchy (a tech company assembles a cross-functional team to launch a product, leveraging the skills of designers, engineers and marketers.) - **Person culture** centers on individuals, where the organization exists to support its members' goals. Autonomy and professional expertise are key, with minimal hierarchy (a law firm where lawyers share resources but work independently.) - **Role culture** relies on structure, clear roles, and established processes, with authority tied to position in a hierarchy. It suits stable, bureaucratic environments (a government office where employees follow strict rules and predefined roles to ensure efficiency and accountability) - **Power culture** is centralized, with key decisions made by a strong leader or a small group. It thrives on loyalty and fast decision-making (a family business led by the founder, where employees align closely with the leader\'s vision) Disadvantages of typologies: - Oversimplification - From one (western) perspective - No "why" - Context & dynamics not taken into consideration Common mistakes in culture change in a company: - Managers think it is not about them - No knowledge about current culture - Only changing the superficial layer (clothing, logo, office space) - Force or rush it: resistance will surely happen What could work: - A new figure head - Ceremonies and rituals - Stories and use of language (implicit) - Socialization Exam training and Q&A 2 ----------------------- Know the difference between horizontal and vertical division (differentiation/specialization). Functionalism, department formation. Vertical task division (four factors influence the division of tasks). Organizational systems: draw a chart (line/staff), management roles (top/middle/lower), mechanistic vs organic, something span of control. The 7S model! Internal differentiation (F-division, P, M, G division) what\'s the difference, decentralization. Internal differentiation searching for tasks that have something in common. Internal specialization is grouping activities carried out by a unit on the basis of the end result. What does centralization and decentralization mean? (who has the power to make decision) Internal differentiation \- Searching for tasks that have something in common Internal specialization \- Grouping activities carried out by a unit based on the end result Internal differentiation = F-Division\ Internal specialization = P, G, M-division HRM cycle\ HRM instruments, recruitment, selection, appraisal, training, etc.\ Know what belongs to inflow, throughput, outflow And the HRM management / interview cycle\ Type of conversions, what to discuss when\ Agile -- effort of agile, self-directing teams, etc. Leadership styles - X and Y behavior theory (McGregor). Hersey & Blanchard situational leadership style and level of task maturity IMPORTANT! - Flow through of management/interview cycle What are processes? - Inflow-transformation-outflow - Know the difference between primary, secondary and administrative processes. Quality control, corticates & lean Management. How to apply quality techniques, how to improve. Primary process of HRM is inviting new employees, making sure all the employees have updated information. USE VERBS TO ANSWER THESE QUESTIONS Definitions of process control, process improvement, re-designing processes (these may lead to fundamentally and radically organized processes which may have big implications for the organization, self-scan, self-check-in etc.). Lean management: - Knowing what the customer wants (how does he/she define the quality of your product/service (added value)) - Preventing waste - Making the product/service \'too perfect' - Transport - Waiting in between - Errors - What is organizational culture? - Definition, mission, vision - Ways to influence - Culture change - Culture models? - Handy; Schein -- Iceberg (onion model), artefacts, norms, values, underlying assumptions. You need to know the power distribution vs Levels of Cooperation - Motivation -- type of motivators - Work-intrinsic vs work -- extrinsic motivators - How to motivate employees (high objectives, financial incentives, task design) - Stress (and stress prevention 180 (2 parties that give you feedback) and 360 (4 parties) were mentioned. ### QUESTIONS 1. **What is meant with outplacement?** a. Coaching of employees leaving the organization **2. "The organization is revolved around the leading figure" which culture is this?**\ c. Power culture **3. Explain which theory is meant with\... "who could apply varying styles of leadership, depending on the job maturity of the staff members"** Situational leadership (Hersey & Blanchard) **4. Explain the roles of a manager** Three types of managerial roles: - **Interpersonal roles** where the manager directs employees and handles the progress and results of processes within their competence (figurehead, leader, liaison officer) - **Informational roles** where a manager needs to be informed of any changes within the organization that will affect the operational results of the division (observer, disseminator, spokesperson) - **Decision-making roles** where the manager handles implementing policy and using contacts, he can see the company\'s SWOT (entrepreneur, trouble-shooter, resource allocator, negotiator) Book ====  ====================== Week 1: General --------------- Formally speaking, an organization exists when two or more people choose to work together to achieve a certain goal or goals. An organization can be seen as: *any group of people cooperating to achieve a common purpose*. They exist because society had a demand for the products or services they provide. The three elements of an organization can be seen as; 1. People 2. Cooperation 3. Common purpose Organizing involves combining and structuring tasks, people, and resources so that an organization\'s goals are reached. Management means: *the leading and steering of an organization.* The survival of organizations is highly dependent on their ability to cope with external influences. Strategic management is *the process of careful consideration of proper responses to the environment, as well as maintenance of and development of the skills needed for the inclusion of changes to strategy.* Strategy can be defined as *a plan that stakes what an organization needs to do to reach its goals.* There are two different approaches to strategic management: - **!!! Classical school or Strategic planning** is used to strike a balance between the resources, strengths, and weaknesses of the enterprise on hand and the opportunities and threats from the environment on the other. - **The second modern approach** is when strategic management is synonymous with strategic thinking. An organization that thinks strategically can put its vision into practice (analytical models are no longer adequate in dealing with the present turbulent environment). An organization can achieve certain growth; - Though autonomous growth - Through engaging in a collaboration - Through engaging in mergers or organization takeovers The process of strategic management consists of three phases: 1. **Situational analysis** 2. Strategy formation 3. Planning and implementation Situational analysis is done by a SWOT analysis (Strengths-Weaknesses-Opportunities-Threats). It consists of: - **A definition of the current vision aims and strategy:** a vision is a general idea or representation of the future of the organization and usually consists of a mission statement and principles. - An internal analysis - An external analysis  1. **Structure**: the way elements within the organization relate to each other, the organizational framework, distribution of tasks and so on. 2. **Systems**: information and communication systems within the organization 3. **Managerial style:** the behavioral patterns of the top managers of the enterprise, it has a big influence on the culture 4. **Staff:** the attention the organization pays to human resources 5. **Key skills:** capabilities of individuals in the organization, those that can be distinguished from competitors 6. **Strategies:** plans where they show what the organization needs to do to reach its goals. Principles are *the norms and values of the organization and can be compared to societal norms and values.* This is something like quality first, customer first, reliability and honesty and so on. Organizational goals show the relationship between the organization, the environment and the employees. Stakeholders such as finance providers have an important voice in this matter. Once the organizational goals have been scrutinized, the chosen strategies are examined. *Are the current strategies successful?* Week 2: Structure & Function ---------------------------- ### Motivating people - **Motivating by financial incentives** helps keep people active, these are immediate rewards for their performance. - *Bonuses are once-only payments for agreed performance.* - *Profit sharing is a percentage of the net profit obtained over a certain year.* - *Shares-option arrangements is a payment in the form of shares (employee can buy shares with a fixed price)* - **Motivation by means of task design** involves a range of duties attuned to the needs of a specific employee. This can be done by task enrichment (higher level tasks), task enlargement (more tasks of same level) and task rotation. - *Job crafting allows employees to redesign their roles by adjusting tasks, perceptions, and interactions for greater satisfaction and engagement.* - Motivating by setting high objectives helps call on the best the individual has to offer. This is done to improve performance. - *Must be met with the **SMART** (Specific, Measurable, Acceptable, Realistic, Time-fixed) goal conditions.* ### Group formation A group is *formed when two or more people consciously collaborate to reach certain goals. Interaction takes place as they realize that they need each other to achieve their aim.* Organizations are made up of many active groups (projects, committees, brainstorming sessions, management teams), groups form the binding factor within organizations. - **Formal groups** have a place within the structure of the organization - *Permanent group is for example a management team, this stays forever within the organization* - *Temporary group (taskforce) is a study group, once the project is completed, the group is dissolved* - **Informal groups** are group outside the structure of the organizations (based on friendship and/or common interests) - **Virtual teams** save companies costs for employees that work overseas, group composition is important because of the different cultures. - **Self-governing teams (autonomously working teams)** is where a group of employees is responsible for its own activities, management tasks are reserved for the executive. It's a fixed group of employees that's able to manage itself and take responsibility, for this it must have relevant information, abilities and aids. - *Makes **management** more efficient and effective* - *The **quality of work** is better because of the responsibility and rotating tasks which promotes further development* - *Creativity and learning capacity are challenged, so the company becomes a **learning organization*** **Stages of group development:** 1. **Forming.** A *collection of individuals* become acquainted with the rules and purpose of the joint effort. 2. **Storming.** A *starting group* where the members operate in accordance with their own insights, smaller groups are formed, and foundations are aid for group cohesion. 3. **Norming.** An *advanced group* where members are more willing to compromise to have agreement within the group. 4. **Performing.** An *effective group* where joint effort is needed to deliver a good performance, the group organizes and performs activities to fulfill its purpose. 5. **Adjourning.** The purpose of the collaboration has been achieved. ### Management Within a growing organization a need may arise to separate operational control from leadership. This situation will give rise to the development of a number of levels at which managers are required to coach their employees. Three main management levels within an organization\'s hierarchy: 1. **Top-level management** provides leadership to the organization. This is the main motivator and initiator of the company; they\'re held responsible for the future successes or failures of the organizations they lead. 2. **Middle management** directs the activities of the operational levels, including the first line of management level (especially in big companies). They\'re tasked with implementing general policy and providing direct leadership to the executive branch. 3. **First line** **management** are head of departments or group managers. Policy formulating tasks are tasks in the fields of diagnosis, prediction, planning and organizing activities. The executive tasks involve mainly the delegating of activities and the supervising and motivating of employees. - **A functional manager** has responsibilities that relate to the management and performance of a single main activity within an organization. Employees are coached by this manager to focus on one task only (purchasing managers and marketing managers). - **A general manager** is responsible for all the activities within a certain part of the organization, including production, marketing, and finance (business unit manager and divisional manager). The main function of the manager is to direct employees and manage the resources in an organization. Three types of managerial roles: - **Interpersonal roles** where the manager directs employees and is responsible for the progress and results of processes within their competence (figurehead, leader, liaison officer) - **Informational roles** where a manager needs to be informed of any changes within the organization that will affect the operational results of the division (observer, disseminator, spokesperson) - **Decision-making roles** where the manager is responsible for implementing policy and using contacts, he can see the company\'s SWOT (entrepreneur, trouble-shooter, resource allocator, negotiator)