NDH303.pdf

Management & organization Frames Strategy Operational effectiveness Structure → people in the right place Human Resource → right people, maintain motivation Politics → minimize conflict, maximize influence Symbolic → develop a supportive culture Positioning - Strategy involves creating a unique p...

Management & organization Frames Strategy Operational effectiveness Structure → people in the right place Human Resource → right people, maintain motivation Politics → minimize conflict, maximize influence Symbolic → develop a supportive culture Positioning - Strategy involves creating a unique position through trade-offs and selecting specific activities that fit together to reinforce a company’s distinctiveness Porters 5 forces Rivalry among existing competitors - is rivalry bad for business? Size and power equality Limited growth of the market Exit barriers are high Commitment to business Lack of familiarity Threat of new entrants - what barriers are stable and which changes? Supply-side economies of scale Demand-side benefits of scale Are switching costs high Capital requirements Advantages Government Policy Threat of substitutes - what product/company redefines demand? Economically beneficial Low switching cost Bargaining power of buyers - what relationship do we have with our customers? Buying in large volumes Standardization of products Low customer switching costs Buyers can become suppliers Bargaining power of suppliers - what relationship do we have with our suppliers? Supplier control a concentrated industry Supplier has many customers You have switching costs Suppliers are differentiated  No substitutes Suppliers become competitors Structural Allocating responsibilities across units and roles Integrating diverse efforts in pursuit of common goals Putting people in the right roles and relationships Tight structure or loose? Formal helps when the jobs get easier with it De-skill work or leverage users’ skills? Basic structural tensions Specialization Prescribing job description, procedures, routines, protocols, rules → burdensome or help with predictability, uniformity, and reliability? Organization charts Vertical coordination Authority - power structures Clear - military Fuzzy - school Rules and policies Organized list of things to do (Recipe, Checklist) Planning and control systems Performance control (Benchmarks) Action control (Specific actions) Lateral (horizontal) coordination Meetings - sharing knowledge in once off events Task forces - SASSE → related individuals/efforts/goals Coordinating roles - Diplomat, people who advance agendas Matrix structures - SSE → management/marketing vs center for retailing Networks - Connections with related people (WFD) Dilemma (with coordination networks) Differentiation vs integration → separate groups, do they communicate? do we know what others are doing? Gap vs overlap → doing related things or doing the same thing Underuse vs overload → working all the time or hardly working Autonomy-loose vs interdependence-tight → how do you let people be themselves while working together? When does it make sense to restructure? (create new relationships) One Boss - everyone under one boss Dual Authority - separate structures under one boss Simple Hierarchy - one to one to several Circle Networks - everyone is connected in a circle All Channel Networks - everyone is connected to everyone Vertical or lateral? Efficient or effective? Human Resource Performance = Ability x Motivation Maslow’s Hierarchy of Needs 1. Physiological → Food, water, rest 2. Safety → Security 3. Love/Belonging → Intimate relationships, friends 4. Esteem → Feeling of accomplishment 5. Self-actualization → Achieving one’s full potential Different motivators/satisfiers but also hygiene factors/dissatisfiers Autonomy - feel in control vs feeling controlled Mastery - using full potential and growing vs not using full potential and stagnated growth Purpose - work matters and makes an impact vs doesn’t matter and doesn’t make an impact When needs are not met 1. Climb-up: promotion, new role, side hustle 2. Form alliances: find collaborators to balance power 3. Psychological withdrawal: ghosting, apathy, freeriding 4. Physical withdrawal: absenteeism, quitting 5. Counterproductive workplace behaviors: stealing, sabotage, yelling at colleagues 6. Psychological impairment: learned helplessness Theory X or Theory Y - tight or loose? Improving HR HR Strategy Develop and share a clear philosophy for managing people Build systems and practices to implement the philosophy Hire the right people Be selective Know what you want Keep them Reward well Protect jobs  Promote from within Share the wealth Invest in them Invest in learning Create development opportunities Empower them Provide information and support Encourage autonomy and participation Redesign work Foster self-managing teams Promote egalitarianism Promote diversity Be explicit and consistent about the organization’s diversity philosophy Hold managers accountable Groups are informal Informal roles Contributors - task-oriented Collaborators - symbolic direction Communicators - process-oriented Challengers - push and challenge Informal norms Organically arising ways of doing things Informal networks We start talking to those we like Interpersonal and group dynamics Advocacy - trying to influence others 1. Develop private diagnosis and solution 2. Assume that problems are due to others’ misperceptions 3. Change other person 4. If other person is defensive → confirm suspicions 5. Meet resistance with more pressure 6. If you fail, it is not your fault Inquiry - working together 1. Emphasize common goals and mutual influence 2. Communicate openly 3. Question and test assumptions 4. Combine inquiry with facts (advocacy) Competition Sides emerge Decision biases ○ Wanting to win ○ Anchored to my perspective ○ Focus on confirming and discounting disconfirming ○ Framing  ○ Don’t bother mentioning smaller negatives What to do about this? Understanding that informal processes (advocacy) develop quickly Question them Develop shared perspectives Make sure that everyone understands the same problem Ask for diversity in opinions (minority influence lead to better outcomes, force groups to consider/question established assumptions) Test your theories Political Power: If A can make B do something they wouldn’t otherwise, A has power over B. Dependency: If A has something B wants, A has leverage. Power and decision-making Alliances form at every level of organizations → members have common interests → achieve more together → need power Different views on power: Structural - authority power Human resources - empowerment Political - authority among other forms of power Power doesn’t have to be evil Sources of Power Dominance ○ Position power (authority) ○ Access and control of agendas - a seat at the table ○ Control of rewards ○ Coercive power - punishment Prestige ○ Information and expertise ○ Reputation ○ Alliances and networks ○ Framing - convincing others of a certain framing ○ Personal power - attractiveness Why Power is important 1. Achieve goals 2. Help (block) people who want to achieve legitimate goals 3. Remove bureaucratic impediments (cuts red tape), or puts them in place 4. Meet the needs of the people 5. Develop the culture of the organization How to influence if not dominance or prestige: Reciprocity Commitment/loyalty Social proof Liking Status signals (authority) Scarcity Competition for scarce resources of status → moving up the ladder → free and fair competition → better performances win HOWEVER → assessing performance includes subjectivity → politics and power is needed to get ahead Traditional view: Organizations are created and controlled by legitimate authorities who set goals, design structure, and manage employees. Political view: Organizations are coalitions of individuals and groups with differing interests who operate in a world of scarce resources. Power and conflict are central to organizational decision-making. Authorities have position power, but other contenders bring different beliefs, values, and interests, competing for power and resources. Goals, structure, and policies arise through bargaining and negotiation among interest groups. Power dynamics vary: in some organizations, authority figures dominate, while in others, different groups hold power. Politics in organizations can be constructive and necessary to create fair and efficient institutions. Four basic steps to exercise political influence 1. Identify relevant relationships 2. Assess who might resist, why, and how strongly 3. Develop relationships with opponents to facilitate communication, education, and negotiation 4. If step 3 fails → use more subtle or forceful methods Negotiation Value claiming, distributive, zero-sum bargaining process: Bargaining is a mixed-motive game Bargaining is a process of interdependent decisions The more player A can control player B’s uncertainty, the more powerful A is Bargaining involves judicious use of threats rather than sanctions Making a threat is crucial Calculation of the appropriate level of threat is also critical Negotiation involve different issues: Distributive Integrative Mutual Questions to assess leaders’ morality: Are you following rules that are mutually understood and accepted?  Are you comfortable discussing and defending your choices? Would you want to be on the receiving end of your own actions? Would the world be better or worse if everyone acted as you did? Are there alternatives you could consider that rest on firmer ethical ground? Politics can be destructive or a tool to achieve goals Constructive political leaders know how to: 1. Develop agendas 2. Map political terrain 3. Create a network of support 4. Negotiate with allies and adversaries Symbolic Culture can be based on core values: Power distances Uncertainty avoidance Individual vs collective Masculinity vs femininity Culture in organizations are more specific Organizational Symbols Myths Collective dream Undergird the organization's values Values Values are unlike goals, intangible Characterize what an organization stands for Vision Core ideology/sense of purpose → future Vital in contemporary organizations Heroes and heroines Leaders as exemplars Human icon Stories and fairytales Illustration of information, values, morals, and actions Rituals Symbolic act It has a stateable purpose but alludes to more than it says and has several meanings Ceremony More episodic, grander, and more elaborate than rituals Socialization/Community  Coordination/stabilization Metaphors Compress complicated issues into understandable things Humor Integrates, expresses skepticism, contributes to flexibility and adaptiveness, and lessens status difference Play Can often be viewed negatively, as the thing you do away from work Playfulness can be positive at work Organizations as cultures Organizations are or have cultures Culture is “how we do things around here” Product (experience) and a process (learning newcomers) Symbolic forms and activities are the basic elements of culture, accumulated over time to shape an organization’s unique identity and character. Case Articles Hewlett-Packard: Culture in Changing Times Structure At first, the decentralized structure was effective (autonomy, innovation) As the company grew, more structure, bureaucracy, and strategic oversight was needed Human resources HP way was crucial to employee morale The "HP Way" emphasized respect for individuals, trust, and teamwork, which created a strong, loyal workforce Leadership changes under Fiorina led to a perception that this employee-centric culture was being neglected, resulting in internal resistance Political The new leader must understand the effects of changes politically Power struggles arose between coalitions (tradition vs change) The leader should form coalition with others in power to overcome opposition Symbolic The shifted focus to financial performance disrupted HP’s symbolic legacy Tension was created Fact Articles Evolution and Revolution as Organizations Grow Organizations growing go through stages of evolution and revolution Evolution: stages of growth, stability Revolution: stages of crisis, turmoil, changes Depending on how the revolution is handled, the resolution of the turmoil, the organization will either move forward to next stage of evolutionary growth or not A Model of how Organizations Develop Dimensions: 1. Age of the organization 2. Size of the organization 3. Stages of evolution 4. Stages of revolution 5. Growth rate of the industry Five phases of growth 1. Creativity → Leadership 2. Direction → Autonomy 3. Delegation → Control 4. Coordination → Red tape 5. Collaboration → “?” Each phase = result of the previous phase = cause for next phase What is Strategy? Operational effectiveness ≠ strategy Operational effectiveness means performing similar activities better than rivals Strategy means performing different activities or similar activities in different ways than rivals Positioning is important (IKEA, Southwest airlines) Understanding Power in Organization Power Critical in organizations Understanding distributions and use of power = essential Comes from control of resources, information, and alliances Competition and conflict Organizations = political arenas Competition for limited resources Conflict is natural Building alliances Networks and coalitions to gain influence Leaders need strategic alliances to strengthen power Strategic Use of Power Effective managers need to leverage power strategically to achieve organizational goals Involves understanding of informal and formal power structures Ethical Dilemmas Leaders must balance self-interest with organizational goals Maintaining ethical standards What to do before negotiations Preparation is crucial: Effective negotiation starts with thorough preparation, which can determine the outcome. Define goals clearly: Understand what you want to achieve and set clear, measurable goals before entering the negotiation. Know your BATNA: The Best Alternative to a Negotiated Agreement (BATNA) is your fallback plan if the negotiation fails, and knowing it strengthens your position. Understand the other party’s BATNA: Knowing the counterpart’s alternatives helps you gauge their flexibility and leverage. Assess interests, not just positions: Focus on underlying interests and needs of both parties rather than fixed positions, which allows for more creative solutions. Gather information: Research thoroughly about the other party’s goals, constraints, and negotiation style to anticipate their moves. Develop strategies: Plan your negotiation strategy, considering potential offers, concessions, and responses to likely objections. Consider the relationship: Whether it’s a one-time negotiation or an ongoing relationship, the approach should be tailored accordingly to maintain long-term interests. Plan concessions carefully: Think in advance about what you are willing to concede and in what order to maximize value. Practice: Simulate negotiations to refine your approach, anticipate challenges, and build confidence. Mowday & Sutton - Organizational Behavior: The paper explores the intersection of individuals, groups, and organizational contexts in determining behavior within organizations.  Organizational behavior is affected by both individual attributes and group dynamics, with social contexts playing a critical role. Organizational structures and policies influence employee motivation, engagement, and performance outcomes. The importance of shared values and cultural alignment is highlighted as key to fostering organizational commitment and reducing turnover. The interaction between formal organizational controls and informal social dynamics impacts decision-making and innovation. The authors discuss the impact of leadership styles and management practices on group cohesion and organizational effectiveness. Employee satisfaction is linked to the congruence between personal goals and organizational objectives Lau & Murnighan - Demographic Diversity and Faultlines: The article introduces the concept of "faultlines," which are hypothetical dividing lines that can split groups into subgroups based on demographic characteristics. Demographic diversity can lead to creativity and innovation, but also increase subgroup conflict, particularly when faultlines align. Faultlines are more likely to arise in groups with moderate diversity and can result in communication breakdowns and lower group performance. Group development is significantly influenced by the alignment of individual characteristics such as age, race, gender, and job tenure. Subgroup conflicts triggered by faultlines can undermine group cohesion and lead to long-term divisions within teams. The authors argue that managers must understand the dynamics of faultlines to effectively leverage diversity and minimize conflict. The concept of faultlines provides a more nuanced understanding of group composition beyond traditional measures of demographic diversity Kanter - Men and Women in Organizations: Lau & Murnighan’s concept of faultlines highlights internal power struggles and subgroup conflict, which fit into the political frame. The political frame focuses on navigating group dynamics and conflicts, where understanding demographic diversity and managing subgroups become critical for leaders. Kanter discusses the effects of gender imbalance in organizations, focusing on women as tokens in male-dominated environments. Women in skewed groups often experience heightened visibility, leading to both positive and negative attention from peers and superiors. Token women are subjected to higher performance pressure and are often perceived as representing all women in the organization. The rarity of women in higher-level positions can lead to isolation, with few opportunities for informal networking or mentorship.  Men tend to dominate informal peer networks, which are crucial for career advancement, further marginalizing women. Kanter highlights how numerical distribution (the many and the few) shapes social interactions and power dynamics within organizations. The chapter emphasizes that it is the proportional imbalance, rather than inherent gender differences, that shapes the behavior and experiences of women in the workplace​ Exam 40 multiple choice, 2 points each = 80% of the exam