Managing People and Organisation - Lecture 2 MOB 2024 PDF

Managing People and Organization A good manager is he/she who can organize all the members under him/her to meet organizational goal, and members are satisfied, loyal, and committed So, two things to notice Performance as an individual and as a group Job satisfaction...

Managing People and Organization A good manager is he/she who can organize all the members under him/her to meet organizational goal, and members are satisfied, loyal, and committed So, two things to notice Performance as an individual and as a group Job satisfaction 1  Managing People and Organization Robert Katz (1974) identified three basic and also essential skill for a good manager. These are: Technical skill: ability to apply expertise and specialized knowledge Human skill: ability to work with, understand, and motivate other people, both individually and in groups. Conceptual skill: The mental ability to analyze and diagnose complex situations and decision making 2  Managerial Functions Skill Type Needed by Manager Level Top Managers Middle Managers Line Managers Conceptual Human Technical 3  Managing People and Organization In the early part of 20th century, a French industrialist, Henri Fayol observed 5 important functions of a manager. These are: Plan Organize Command Coordinate Control 4  Managing People and Organization Now, present organizational manager condensed these into four categories. Resources Management Functions Human Goal Financial Planning Organizing Directing Controlling Achievements Physical Informational 5  Managing People and Organization Planning A process that includes defining goals, establishing strategy, and developing plans to coordinate activities. 6  Managing People and Organization Organizing Determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made. 7  Managing People and Organization Directing A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts. 8  Managing People and Organization Controlling Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations. 9  Managing People and Organization For managing people, process, and organization, a manager should consider Individual behavior in organizations, including diversity and demographic characteristics, decision making and the effects of personal networks. Organizational process, interpersonal behavior, including teamwork, norms, and managing through others. Organizational factors that affect behavior, such as reward systems, culture, and organizational design. 10  Managing People and Organization There is no unique way or best way to manage. A manager has to take into account the environmental conditions that apply to a specific situation or a specific time when formulating strategy. The contingency approach to management expects that a manager must consider each facet of environment and the interrelationships between these facets while decision making, problem solving, job designing. 11  Managing People and Organization Challenges of Managers Increasing number of global organizations. Building competitive advantage through superior efficiency, quality, innovation, and responsiveness. Increasing performance while remaining ethical managers. Managing an increasingly diverse work force. 12 Using new technologies.  Managing People and Organization Managerial Activities Traditional management – Decision making, planning, and controlling Communication – Exchanging routine information and processing paperwork Human resource management – Motivating, disciplining, managing conflict, staffing, and training Networking – Socializing, politicking, and interacting with others 13  Managing People and Organization Allocation of Activities by Time 14  Background of Organizational Theory Taylor’s Principles: Scientific Management 1. Study the way workers perform tasks and experiment with ways of improving them Gather detailed, time and motion information. Try different methods to see which is best. 2. Determine rules that govern task performance Teach to all workers. 3. Select (according to the rules) the worker for the task according to the rules set in Step 2. 4. Establish a performance standard, and develop a pay system that rewards above-standard performance Workers should benefit from higher output. 15  Background of Organizational Theory Henri Fayol, developed a set of 14 principles: 1. Division of Labor: allows for job specialization.  This is the specialization that economists consider necessary for efficiency in the use of labor.  Fayol applies the principle to all kinds of work, managerial as well as technical.  Fayol noted firms can have too much specialization leading to poor quality and worker involvement. 2. Authority and Responsibility: Fayol included both formal and informal authority resulting from special expertise.  Here Fayol finds authority and responsibility to be related, with the latter arising from the former. He sees authority as a combination of official factors, deriving from the manager’ position and personal factors. 3. Unity of Command: Employees should have only one boss.  This means that employees should receive orders from one superior only. 16  Background of Organizational Theory Henri Fayol, developed a set of 14 principles: 4. Line of Authority: a clear chain from top to bottom of the firm. Fayol thinks of this as a chain of superiors from the highest to the lowest ranks, which, while not to be departed from needlessly, should be short circuited when to follow it scrupulously would be detrimental. 5. Centralization: the degree to which authority rests at the very top. Without using the term “Centralization of authority.” Fayol refers to the extent to which authority is concentrated or dispersed. Individual circumstances will determine the degree that will give the best overall yield. 6. Unity of Direction: One plan of action to guide the organization. According to this principle, each group of actives with the same objective must have one head and one plan. 17  Background of Organizational Theory Henri Fayol, developed a set of 14 principles: 7. Equity: Treat all employees fairly in justice and respect. Loyalty and devotion should be elicited from personnel by a combination of kindliness and justice on the part of managers when dealing with subordinators. 8. Order: Each employee is put where they have the most value. Breaking this into material and social order, Fayol follows the simple adage of a place for everything and everything in its place. 9. Initiative: Encourage innovation.  Initiative is conceived of as the thinking out and execution of a plan. Since it is one of the keenest satisfactions for an intelligent man to experience. 18  Background of Organizational Theory Henri Fayol, developed a set of 14 principles: 10. Discipline: obedient, applied, respectful employees needed. Seeing discipline as “respect for agreements which are directed at achieving obedience, application, energy, and the outward marks of respect. Fayol declares that discipline requires good superiors at all levels. 11. Remuneration of Personnel: The payment system contributes to success.  Methods of payment should be fair and afford the maximum possible satisfaction to employees and employer. 12. Stability of Tenure: Long-term employment is important. Finding unnecessary turnover to be both the cause and the effect of bad management, Fayol points out its dangers and costs. 19  Background of Organizational Theory Henri Fayol, developed a set of 14 principles: 13. General interest over individual interest: The organization takes precedence over the individual. This is self explanatory when the two are found to differ, management must reconcile them. 14. Team Spirit (Esprit de corps): Share enthusiasm or devotion to the organization. This is principle that “in union there is strength” as well as an extension of the principle of unity of command, emphasizing the need for teamwork and the importance of communication in obtaining it. 20  Attitudes and Behavior Cognitive Dissonance Theory In the late 1950s, Leon Festinger proposed the theory of Cognitive Dissonance The theory sought to explain the linkage between attitudes and behavior Dissonance means an inconsistency Cognitive dissonance refers to any incompatibility or conflict that an individual might perceive between two or more of his/her attitudes, or between his/her behavior and attitudes 21  Attitudes and Behavior Cognitive Dissonance Theory … continued You know attending in the class is important for your learning. This is your attitude. So you should present, but you do not do that. This is your behavior (incompatibility between attitude and behavior) You would like to take bribes. This is your one attitude. On the other hand you do not like to take bribes because you are afraid of legal problems and social dishonor. This is your another attitude. There is an incompatibility between two attitudes. 22  Attitudes and Behavior Cognitive Dissonance Theory … continued Festinger argued that any form of inconsistency is uncomfortable Individuals will attempt to reduce the dissonance and, hence, the discomfort Therefore, individuals will seek a stable state, in which there is a minimum of dissonance No individuals, of course, can completely avoid dissonance You know attending in the class is important for your learning. So you should present, but you do not do that. 23  Attitudes and Behavior Cognitive Dissonance Theory … continued Festinger proposed that the desire to reduce dissonance would be determined by the importance of the elements creating the dissonance and the degree of influence the individual believes he/she has over the elements and the rewards that may be involved in dissonance If the elements creating the dissonance are relatively unimportant, the pressure to correct this imbalance 24 will be low.  Attitudes and Behavior Cognitive Dissonance Theory … continued Suppose, you are working as a junior executive in a company. You always dislike and are strongly against to work after regular office hour. But your manager always ask all of you to work up to 8:00 PM to finish pending works. This is very important for the company’s export shipment. Now after couple of years, you are the Manager. What will you do? In principle you are against this. At the same time to meet company’s goal (which is your responsibility as a Manager and also you are bound to do that to retain your job), you have to do that. The elements involved are very important, so difficult 25 to reduce dissonance.  Attitudes and Behavior Cognitive Dissonance Theory … continued There may be couple of alternatives. You can maintain your principle and let the employees to go home after regular office hour. You can ask the employees to work during interval time to finish the works You can now suggest your employees that working longer time is good for their knowledge and skill You can simply decide that since you are now the Manager, you have to perform your duty. To perform own duty is a more important principle that retaining own perceived principle. Or, you can simply ignore your principle by confirming that you used to believe on that principle in the past, not now. This is a competitive era. We have to work longer time since we are 26 getting good salary.  Attitudes and Behavior Cognitive Dissonance Theory Cognitive dissonance theory suggests that we have an Intrinsic motivation or desire to keep our attitudes and beliefs in harmony (in the same line) Implications for Organizational life:  Change inconsistency between attitude and behavior  Change one or more of the attitudes  Provide new information for cultural change to be compatible with organizational norms  Reduce importance of inconsistent beliefs 27