MIDTERM CHAPTERS PDF

# MIDTERM CHAPTERS ## Chapter 1 - Managing and Organisations | Concept | Explanation | |---|---| | Organisations | They are tools; they are purposive, goal-oriented instruments designed to achieve a specific objective. | | Managing | A leader who communicates, coordinates and accomplishes action i...

# MIDTERM CHAPTERS ## Chapter 1 - Managing and Organisations | Concept | Explanation | |---|---| | Organisations | They are tools; they are purposive, goal-oriented instruments designed to achieve a specific objective. | | Managing | A leader who communicates, coordinates and accomplishes action in the pursuit of organisational objectives (missions, visions etc.) | | Sensemaking (SM) | The process through which individuals and groups give meaning to something, especially to explain novel, unexpected or confusing events. Sensemaking involves the formulation of accounts of what's going on. * There are different elements in Sensemaking * 1. Ongoing = We always make sense, in a continuous process. We always make sense of what we are experiencing at the moment. It is always changing and developing. * 2. Retrospective = We always review the sense we make and renew it each time we receive sense data (new information/experience). * 3. Plausible = We never make perfect sense, but more provisional sense. We always update our senses but it will never be perfect, just good enough for us to go on with our day-to-day. * 4. Images = We use representations of things such as models, plans, images etc., to try to navigate through the unknown * 5. Rationalise = We tend to rationalise new things that are confusing even if they might not be completely right. * 6. People = People do sensemaking, not computers. * 7. Doing = We do sensemaking by thinking and taking action (or what we don't do) | | Framing | Deciding what is relevant from the infinite number of stimuli, behavioural cues, sense data and information that surround us. Leaders are expected to frame the sense that others make, recruiting and enrolling them as followers in their sense-making | | Sensebreaking | Occurs when organisational members disrupt an existing sense to make alternative sense. Sense-breaking is a strategic attempt to disrupt existing flows of sense-making and sense-giving. | | Sensegiving | attempts to influence the sense-making of others so that others come to accept a preferred meaning. Emotion matters in sense giving. Sense-giving is a strategic attempt to frame others' perceptions to accord with the sense that you are making | | Managerialism | When managers think that, based on their generalised managerial competence they are able to make specific decisions. Managers will believe that their exclusive education gives them the power to make the correct decisions. | ## Chapter 2 - Managing Individuals | Concept | Explanation | |---|---| | Organisational behaviour (OB) | Studying human behaviour in organisations. Examines behaviour on a group, organisation and individual level, as a goal to understand them and create a better organisational performance. | | Nature vs Nurture debate | A scientist's argument on how we might act. Nature claims we act the way we do due to our DNA and genetics. Nurture claims we are the way we are due to the environment we grew up in. | | Selfish gene/Survival of the fittest | The theory that we are programmed for competition in a fundamental struggle to perpetuate our genes over those of others. They can be achieved through competition/cooperation. | | Perception | The process of receiving, attending to, processing, storing and using stimuli to understand and make sense of our world. | | The processing model | Starts with a variety of stimuli, to which you choose to only focus/filter to 1 main (selective perception). This can be subconscious. You then organise the information you receive into sections (through schemas). Then you interpret this information and apply them to your schemas and previous experiences. In the future, you might have stored all this information and chosen to retrieve it and repeat it elsewhere. | | Person schema | Expectations the world has on how a person should be, a sort of prototype. | | Self-schemas | Conceptions we have about ourselves that we believe are self-descriptive and very important to have. Eg I might think I am hard-working and honest. | | Script schemas | How we operate in our world and understand and remember information. | | Social schemas | Our social knowledge (eg public affairs, laws, politics etc) | | Role schemas | What is appropriate or inappropriate behaviour in a specific context? → How should a mother act towards her child compared to how she acts in front of her boss at work? | | Values | are desirable goals, varying in importance, which serve as guiding principles in people's lives. They are transitional and aren't easily changed. | ## Chapter 3 - Managing Individuals | Concept | Explanation | |---|---| | Intelligent Design debate (ID) | Stupid ass debate made by Americans. Those pro to this debate wants schools to teach the US kids that ID proves that god exists and that evolutionary theory is completely wrong. | | Stereotyping | Process of grouping objects into simplistic categories based on one generalised perception of those objects. Eg "Dutch people are direct and rude" and "Internationals steal all the Dutch housing". Stereotyping also shows to be a problem now with the gender gap in wages and rights. | | Self-fulfilling prophecies | When someone's beliefs or expectations aren't really valid, but they don't care and act as if it were true. (Rosental and Jacobson) | | Pygmalion effect | Psychological phenomenon in which high expectations lead to improved performance in a given area. (Lenore Jacobson's experiment on p.44-45) | | Halo effect | Thinking that because a person is very good at 1 thing, they will be good at everything. Eg I am good at doing front flips on the trampoline, so I must be good at doing back flips too. In reality, when I do backflips, I fail miserably. (developed by Thorndike) | | Devil effect | The opposite of the halo effect. Eg with prisoners | | Attribution theory | Finding ways to blame other elements when we are underperforming ourselves. Eg I got a bad grade on the exam because it was hard (but in reality you barely studied). | | Dispositional attribution | If we disagree with someone, we tend to have negative feelings towards them and vice versa. | | Fundamental attribution error | When we see someone fail we assume it is due to their personality attitude or disposition | | Self-serving bias error | When you do something good, it's because of you, when you do something bad, it's because of others | | Impact bias | The tendency to project emotions into the future and to overgeneralise the intensity of the emotion to be felt | | Cognitive dissonance error | The anxiety and discomfort we have when something goes wrong schema wise (Festinger) | | System 1 & 2 | System 1 is intuitive and fast thinking and automatic, system 2 has more thinking (Kahneman and Tversky) | | Trans-situational | Values are continuous and overlap. So trans-situational values mean you carry values with you in a situation you find yourself in (Schwartz) | | Personality | The stable patterns of behaviour and internal states of mind that help explain a person's behavioural tendencies | | Traits | A part of your personality that can be clearly identified through actions. | | Factor analysis | Statistical method used to describe variability among variables by identifying inter-correlation coefficients that indicate underlying factors | | Big 5: Emotional stability | Calm vs anxious, self satisfied vs self pitying, secure vs insecure, emotionally stable vs emotionally unstable | | Big 5: Extraversion | Sociable vs reserved, assertive vs timid | | Big 5: Openness | Independent vs conforming, broad-minded vs narrowminded, creative vs practical | | Big 5: Agreeableness | Warm-hearted vs ruthless, trusting vs distrusting, helpful vs uncooperative | | Big 5: Conscientiousness | High vs low tolerance for risk, well organised vs disorganised, well disciplined vs impulsive | | Reciprocal determinism | Personality is a product of our behaviour, thoughts and feelings in interaction with our environment | | Locus of control | Internal: belief that you control your own fate, external: outside forces or chance determine your fate so it is out of your control | | Growth and self actualisation | The want to create the best version of yourself. You grow (a) by being genuine, honest and open about your own feelings. (b) being accepting in valuing yourself and others empathy and communicating | | Positive psychology | Leading the best life possible through positive thinking, feelings and behaviour | | Focalism | Focusing too much on the 1st information we receive when making decisions, we place too much emotion and importance on that 1st info instead of looking at the full picture | | Smith | Father of capitalism. He argued progress and economic growth occurs because human behavior is based on self-interest. | ## Chapter 7 - Managing Power, Politics and Decision-Making | Concept | Explanation | |---|---| | Organisational politics | Networks between people in/around organisations that entail power relations. | | Power | Chance for someone to realise their own will, even against the resistance of others. Eg person A does something to person B, which makes person B do something they usually wouldn't. Power = illegitimate. Power works best when it is seen least. Uncertainty is a source of power. | | Authority | Specific commands being obeyed by a specific group of people. Authority is not domination. Authority = legitimate. Authority is bestowed by significant others eg subordinates, superordinates, customers, suppliers etc. | | #MeToo | Major importance as bureaucracy is a system of formal rules and an official space to separate public from private. | | Legitimacy | When there is a widespread belief that something is just and valid. The legitimacy of authority is often contrasted with the illegitimacy of power. | | Resistance | Attempt to challenge, change or retain existing societal relations | | Management of meaning | How legitimation is achieved; seeks to create legitimacy for one's initiatives but also delegitimise those it opposes. | | Strategic contingencies theory | = tasks that need to be done in the form of problems to be solved, thus de-emphasizing personality. So, what the theory in practice holds is that a leader usually needs to have certain personalities, HOWEVER, if a leader doesn't have the charm or specific traits but has real solutions instead, they can also end up being a successful leader. EG → It concerns sub-units becoming more and more powerful in the company. The organization can't go about their day-to-day without this subunit, making them increasingly powerful and making the company somewhat reliant. Therefore subunits gain more power in decision-making. | | Resource dependency view | How managers in organisations secure the flow of resources essential for organisational survival. Can be quite political. This is because organisations can depend on other organisations for their resources. Can be solved with adaptation (eg internal changes not to rely so much) or domination (trying to control the environment) | | Positive sum game | Power is a positive sum game for organisations that have control of the critical resources. They can acquire more or leverage more power with these resources that everyone else needs. | | Power steering | Uses skills to influence decisions, agendas and participation in organisational politics. | | Arise of organisational politics | Politics within organisations arise from the following factors: the management of meaning, divisions in values and identities, complexity&uncertainty&dilemmas, external pressure from stakeholders and the past reputation of an organisation's politics | | Insurgency games (p209-210) | Examples are counter-insurgency, sponsorship, alliance-building, empire-building, budgeting, expertise, lording, line vs staff, rival camps, strategic candidate, whistle-blowing, young Turks | | Soft domination | The appearance of equality in an organisation among peers and the reality of a pervasive system of controls. The subtle mechanisms through which obedience is produced (a) surveillance of work(2) discourse; talk the talk, sharing visions (3) governmentality; exercise power as a way of thinking (4) asceticism/subjectification; covert power through subjectification | | Tension between resistance and obedience | Obedience is a far more productive result of policies than resistance. A lot of coercion and force invite conflict and resistance | | Intentional resistance | Resistance is often done through social media or theatre. Symbolism can occur (eg V for Vendetta with the Anonymous resistance) and can be violent and non-violent | | Individualised resistance | Performative and embodied, articulating issues such as distancing, cynicism, humour, and gendering. They tend to start very locally but could explode (eg #MeToo movement was local about Harvey Weinstein but became a global movement) | | Organisational hegemony | If an organization is typified and dominated by one point of view, reinforced through strong organizational culture and little to no resistance occurs | | Information Panopticon | Devices such as television, speed and security cameras for surveillance | | Total institutions | Organisations organised on the basis of constant surveillance on the principle of inclusion and enclosure | | Empowerment | Transferring power to the individual by promoting self-regulation/motivation behaviour | | Concertive control | Occurs where the sense of responsibility to the members of the team impels you to work intensively and to not let them down. So, if you see your colleagues working hard and you like them, you want to do the same to not let them down and really feel like part of the team. | | Self-Managing Teams (Barker) THEY CUT COSTS = GOOD!!!! | A supervisor has precise responsibility → supervisor is replaced by a team of 10-15 people who take it over Supervisor gives instructions → team gathers info, acts on it and takes accountability as a team Management relies on authority and rules → management provides value-based vision and day to day rules for employees to follow Supervisor checks instructions are followed → team guides its own work and coordinates with other parts of the company Supervisor ensures employees do their job descrp → team does everything at its highest expectations | | Positive Ethical Power Steps to success | (a) Deciding with stakeholders what you want to accomplish & your goals (b) Which part of the organisation is influential and important to achieving those goals? (c) How are important people going to feel about your new change? (d) How powerful are those important people, who are the most influential in the decision? (e) What are your power and influence? How can you influence others to get more positive control? (f) What strategies/tactics for exercising power seem more appropriate/effective | | Self-Regulation | With COVID there have been less self-regulated behaviour | | Decision-making | Decisions are made under conditions of perfect rationality. Everyone sees solutions and problems differently. Managers must operate with limited rationality instead of complete rationality. | | Bounded rationality | Rationality that makes do within cognitive and temporal limits rather than searching ceaselessly for all information and data that are available | | Programmed decisions | Can be made by reference to existing rubrics, are fairly easy and can be categorised | | Non-programmed decisions | No precedents, unfamiliar, novel and complex, therefore, they are messy and intractable problems | | Incremental decisions search | Small steps, which are easier to retrace if things do not go as hoped for | | Muddling through | Muddling → finding an initial simple impasse and further investigating it to reveal more complex political issues. A design is made for a solution. (a) Sporadic disruptive delays, uneven quality of info, many sources of info, the scope for negotiation (b) Fluid little info interaction, formal meetings, few delays, short cycle, steady pace (c) Constricted → specific sector such as finance, consultations across a range of expertise, neither fluid nor sporadic, more authority, careful process | | Decision-making processes of Bradford | (a) Continuous connectedness → keeping everyone engaged (b) Causal connectedness → more complex, you need to make sure the contention is good, there is seriousness for the decision and implementation (c) Anticipatory connectedness → Thinking forward of the future perfect tense, what we will achieve when we have implemented the decisions | | Decision-making and implementing it | | ## Chapter 8 - Managing Communications | Concept | Explanation | |---|---| | Communication | Exchange of ideas, emotions, messages, stories and information through different discursive means. Language is important. | | Cybernetics | The study of feedback and other communication mechanisms | | Discourse theory | Discursive communication informs our actions and decision-making processes. Cognitions and emotions are not part of the picture. | | Human relations discourse | Emphasis on emotions and feelings at work. Employees can now be counselled and advised to adopt appropriate dispositions attitudes and motivations. | | Storytelling | Powerful form of human communication. A person can feel and see information as well as understand it. A shared vision for the future. | | Dyadic communication | 2-party communication. Impersonal when people interact without direct personal contact, as well as face to face. | | Interpersonal communication (dyadic) | Direct interaction between 2 or more people. Based on interdependence where each person's behaviour is a consequence of the others. Can be expressed verbally and non-verbally. Can be formal or informal. | | Impersonal communication (dyadic) | A letter or an email from a tax office is dyadic but impersonal. Lack of relationship between the two sides of the communication. | | Small-group communication | Dynamics between a group are face-to-face. But there are also roles established. Subgroups are formed, with a specific dynamic being created between members. The quality of the group depends on their communication. | | Groupthink | When a group of people who are used to working together end up thinking the same way. There are 6 negative impacts: (a) Limited creativity (b) Options favoured by the majority are often taken without being revisited (c) Expert opinions aren't valued more (d) Group does not re-examine disfavored alternatives (e) Groups are highly selective in collecting and valuing information (f) Once a decision is made, the group is so confident that they don't think of Plan B's You can spot groupthink if a group has an illusion of invulnerability, take joint efforts to rationalise actions they undertake, see themselves as moral, outsiders are less worthy to them and mind-guards protect the group. | | Shared meanings | Communication takes place on the basis of shared understandings and taken-for-granted assumptions | | Mass communication | goes from one point to many receivers. Mass media. It is communication directed to a large, anonymous heterogeneous audience, 1 way without feedback, distributed from many channels so it spreads fast and performed by big organisations instead of small ones. Eg billboards, news etc. | | Hierarchically organised company | Unlikely that the CEO will speak to people from the bottom or vice versa. Ideas from the bottom up aren't communicated that easily. | | Rich communication processes (Bordow & More) | (a) Informative communication transports info about facts and figures which strike action. Communication generates action (b) Systemic communication is the glue between members. Efficiencies for social interaction (c) Literal → communication does not only transport facts but also connotes meaning and sense. Communication is sensemaking. (d) Figurative → communication links an organisation to the wider environment. Its their identity, missing and purpose. | | Intraorganisational communication | Communication that happens within an organisation and engages organisational members | | Inter-organisational communication | Takes place between members of different organisations | | Downward communication | Flow of communication from superior to subordinate. It instructs employees, provides them with goals, explains how they can achieve them, gives feedback concerning their performance and seeks to build commitment | | Upward communication | Flow of communication from subordinates to superiors. Includes employee feedback concerning rules, strategies, implementations etc. | | Reasons for collaborating with other organisations | (a) Necessity → in order to meet legal or regulatory requirements (b) Asymmetry →eg a relationship between a clothes manufacturer and their supplier (c) Reciprocity → More desirable outcome for both organisations if they were to work together (d) Efficiency → improving organisational performance through collaboration (e) Stability → To reach a stableness in the organisation which would otherwise not be possible (f) Legitimacy → To legitimise their business. Eg shell works with Greenpeace for a better image of a caring and responsible company | | Communications with stakeholders | Communication between an organisation and other relevant parties such as media, community groups, labour unions, politicians etc. Mass media is used to communicate what organisations have to offer | | Brand(ing) | The image an organisation creates through design (eg name, ads, logo), behaviour (eg employees) and its products and services. Branding makes choices for you easier. They help us to make our own identity and provide us with devices to tell others who we are. Branding expresses what and who an organisation is. Good branding will mean customers have a relationship between them and the company. (a) Anchor the present in the past. The organisation's history and background so that people understand the current situation (b) Maintain cohesiveness. By saying the same stories community and common values are created (c) Explain why things are the way they are. Create a sense of normalcy | | Polyphonic communication | The presence of many voices, hence different ideas and perspectives. It is bad if an organisation forces all people to speak one 'language', it would turn the business into something monotonic and not creative | | Meta-communication | The belief that managing how a message is projected and received is as important as its content | | Boundary spanner | one that involves representing and communicating an organization's goals within and to its environment, as well as acquiring necessary information from the outside. | ## Chapter 9 - Managing Knowledge and Learning | Concept | Explanation | |---|---| | Knowledge | Stock of ideas, meanings, understandings and explanations of how phenomena of interest are structured and relate to other phenomena. | | Knowledge management | Process of managing knowledge- know-how and know-why - to meet existing and future needs | | Organisational learning | Process of detection and correction of errors | | Learning | Process of acquiring knowledge and capabilities in addition to those already known | | Sources of knowledge (Fulop and Rifkin) | (a) Learning by doing → eg on the job training (b) Hearing stories → Managers learn what their job is all about through stories told within organisations (c) Being exposed to popular accounts → Examples of other cases (d) Being curious and doing research → well design and executed research drives out ignorance | | Tacit knowledge (T) (Nonaka's Matrix) | Knowledge used to do things that you cannot necessarily articulate eg knowledge require to ride a bike. Another example is small talk or being funny, something you have naturally gained knowledge of and a computer would never be able to do. | | Explicit knowledge (E) (Nonaka's Matrix) | Knowledge consciously talked about and reflected on, usually elaborated and recorded for learning. Eg the knowledge needed to play chess is highly explicit since it can be programmed into a computer. | | Socialisation (T→T) (Nonaka's matrix) | People learn codes of conduct and rules of behaviour from other people without having to think too much about their meaning. As a child, you mimic other people's behaviour and way of thinking without asking yourself why in the present day. You just do it. | | Combination (E→E) (Nonaka's matrix) | People combine ideas they are already well aware of. Eg. When the UK government needed ventilators asap, companies such as Mclaren and Rolls Royce joined knowledge to engineer ventilators from 55 a week to 1500 ventilators a week. | | Internalisation (T→E) (Nonaka's matrix) | Things that you learned once become a pattern in your repertoire. You begin to take them for granted and you forget that you learned them in the first place. Eg you work at a new job and you question why people work in that certain way, but after a while, you just accepted it as a social fact | | Articulation (E→T) (Nonaka's matrix) | New knowledge becomes accessible and part of official processes through articulating and sharing. Eg you might unconsciously want a Gucci scarf because all your friends wear one | | Agile organisation | Organised around projects with each agile project being completed in small iterations. Finding flexibility in the face of rapid change | | Single-loop learning (Learning I) | Optimising skills, refining abilities and acquiring the knowledge necessary to achieve a resolution of a problem that requires solving. Simple tasks where you don't need to rethink or relearn for a given task. Single-loop learning is fine as long as everything stays in place, which is risky since it usually doesn't. | | Double-loop learning (Learning II) | Changing the frame of reference that normally guides behaviour. Rethinking the task and considering whether its accomplishment is beneficial or not. Eg redefining the market for a product, or the product itself | | Knowledge exploitation | Occurs through the routinization, standardization and formalization of what is already known and done: doing it more cheaply, quickly and efficiently. Includes repetitions, precision, discipline and control of existing capabilities. | | Knowledge exploration | Involves serendipity, accident, randomness, chance and risk-taking, not knowing what one will find. More relaxed attitudes. | | Atrophy | is When an organisation stops doing what was generating a lot of attention. Or when they only continue doing that 1 thing and do not branch out anywhere else, the popularity slowly stops and goes down to nothing. | | Success Trap | Being too good at exploitation. A victim of its own success. Keep making new products that fit what people like, but times slowly change and people start to value something different or eco-friendly | | Social learning system | Develops when people who have a common interest in a problem collaborate to share ideas and find solutions. Communities in practice. | | How to define different Competencies | (a) Sense of joint enterprise → members need to understand and share what their particular community is about and how they can contribute to their community (b) Relationships of mutuality → creating and reestablishing relationships through interaction with each other (c) A shared repertoire → Shared stories, languages, artefacts, routines, rituals and processes (culture) | | Boundaries & boundary-spanning | They need to be spanned and transgressed to facilitate the flow of information. If they are smaller boundaries, ideas may flow more easily Managing boundaries: (a) Through people → Brokers or people that have high jobs at 2 places can bring in new information from both sides to each organisation (b) Through Artefacts → Tools, documents, models, discourses and processes are boundary spanners. (c) Through Interaction → Boundary spanning because it exposes different beliefs and perspectives. Comparing 2 different cultures/worlds and getting the best of both | | Collaborative relations | Involve sharing resources, including ideas, know-how, technologies and staff between two or more different organisations to create a solution to a given problem | | oxymoron | Figure of speech that combines two normal contradicting terms. Organisational learning is considered a paradox/oxymoron. Learning happens when the old and the new clash and create tension. | | Dealing with complexities of exploring and exploiting | (a) Humor jokes and funny situations provide opportunities for learning because they play with the meanings we normally associate with. Pulls a team together. (b) Improvisation → learning that deals productively with the tension between learning and organising. Learning on the job encourages people to play around with everyday patterns (c) Small wins → not big revolutionary changes, but learning opportunities that happen when you almost do business as usual | | Non-learning organisations benefit | (a) Tolerance of contradictions → Learning organisations often face contradictions and have to change their behaviour or their objectives. Non-learning is much more flexible and can operate more normally. (b) Organisational discretion → non-learning organisations re capable of benefiting from the gap between talk, action and decisions. If things are bad, employees are less likely to argue or be frustrated | | Examinators | They make individuals visible and allow the supervisor to categorise them and establish a hierarchical relation among students (who is a star, and who is stupid). Examinators also make it possible to judge people and compare them with each other. 3 mechanisms to form examination: (a) Visibility→ Learning subjects are fully visible during an examination whilst examiners are almost absent. (b) Individuality → Transforms a group of people into individuals for them to become visible (c) Case → Every individual has a history in the system that can be compared with others | ## Chapter 10 - Managing Innovation and Change | Concept | Explanation | |---|---| | Innovation | Refers to the implementation of a new or significantly improved product, service or organisational practice. Steps involved in implementing a new innovation and an outcome, the end product, service or organisational practice that is eventually implemented. It is a non-linear process with a lot of backwards and forwards through a large journey | | Innovation process | (a) Initiation stage → usually starts accidentally; either a new manager, loss of market share or a significant change in an organisation. When many changes happen in a short space of time, stakeholders take it as an opportunity for innovation and growth and start to plan (b) The development stage → more complicated. Often disagreements, as well as different roles, naturally occur. There tend to be innovation managers who are highly committed to the development of the organisation. There are also controllers who are hesitant and close-minded to change (c) Implementation stage → slow adoption of the new innovation into the organisation. Often, organisations wrongly assess innovation by just looking at market takeup and short-term finance. A lot of innovation also fails, causing the project teams to break up and people going back to their past jobs. → Solution → manage tension in new routines and capture tacit knowledge. | | Leading innovation process | (a) Sponsors → eg managers that command allocation of resources (b) Mentors → experienced innovators that guide the process (c) Critics those that keep the process grounded and serve as devil's advocate (d) Leaders → executives that navigate and settle disputes in the journey and issues that arise among different roles | | Openness and External sources | Openness to organisational insiders working with outsiders such as lead-users, suppliers, competitors and online crowds. External sources can only be used when people are truly open in the organisation. It is predicted on trust, not control. | | Collaborations | Innovation does not always occur internally. Often there are external sources of knowledge that are involved in innovation. Collaborations can be made with other organisations. An example of this is Uber Eats with various restaurants to expand both of their target markets. | | Platform | An evolving eco-system that is created from many interconnected pieces | | Technological paradigms | S-curve trajectories | | Innovators' dilemma | listening to customers and aggressively innovating in different technological markets, influences disruptive innovation and causes businesses to fail. | | Disruptive innovation | Simpler and cheaper to develop in fringe or low-end segments of a market that does not offer sufficient profit and margins to sustain an incumbent firm's operations | | Social innovation | considered the answer to big challenges such as climate change. It is defined as ideas that meet both social needs as well as create new social relationships/collaboration. Technology and social media have shaped social innovation as well as the human dimension. 6 steps on how social innovation works: (a) Prompts, inspirations and diagnoses → every new idea starts with a problem or a crisis. The problem is now experienced, framed and turned into a question that reaches the root of the problem (b) Proposals and ideas generation → Proposals discussed. Ideas are taken into account. (c) Prototyping and pilots → ideas need to be tested in practice. Trial and error, prototyping and refining. Fail often, learn quickly. (d) Sustaining → development and sustainable income streams. resources organised (e) Scaling and diffusion solutions made, franchising or licensing (f) Systemic change change on a big scale, driven by social movements and fuelled by new business models | | Change & the 4 types of change | A transition that occurs from one state to another 4 types: (a) Life cycle → change that occurs in terms of maturation, grwoth or ageing (b) Dialectical (struggle-based) → change that occurs through the interplay, tensions and contradictions of social relations (c) Evolutionary change that occurs through envirnomental adaptation (d) Teleological (vision-based) → change that occurs as a result of a strategic vision | | Unfreezing, moving & freezing (change) | 3 steps: (a) You unfreeze the the current state of affairs (b) You move things to where you want them to be (c) After you have succeeded in moving things, you refreeze them | | 5M framework (Badhman) | (a) Mindfulness → Change is difficult, messy and likely to fail, so you must be mindful of its complexities and subtleties (b) Mobilizing → buy-in from important stakeholders and mobilizing their intelligence, emotions and networks in order to accomplish change (c) Mapping → Planning the journey ahead (d) Masks → Plans need to be performed in order to make a difference (e) Mirrors → provide learning spaces in which actors can reflect on what has happened | | Framing innovation processes | (a) Equilibrium equals death (b) Self organisation (c) Complex tasks need more complex problem solving processes (d) Complex organisation can only be distubted, not directed | | Sustaining routines to the point that they destroy your organisation | (a) Pretend to know more than everyone around you (b) Police your employees by every procedural means (c) Run daily checks on the progress of everyones work (d) Make sure that creative people do alot of technical and detailed work (e) Create boundaries between decision makers, technical staff and creative minds (f) Never talk to employees on a personal level (g) Be the exclusive spokesperson for every new idea (h) Embrace new ideas wehn you talk but do not do anything about them (i) When the proposed idea is too radical, you an always argue that no one has done it before and that there might be reasons for it (j) When the proposed idea is not radical enough, just say that the idea is not really new and someone else already did it | ## Chapter 11 - Managing Ethically and Sustainably | Concept | Explanation | |---|---| | Corporate social responsibility (CSR) | When an organisation exceeds the minimum legal obligations to stakeholders specified through regulation and corporate governance. CSR is very fashionable. It is a new approach to economic, social and environmental impacts. It adopts sustainable development goals. CSR is a voluntary commitment to sustainable economic development on the part of an organisation, intended to improve the quality of life of its employees, families, local communities and society. | | 3 levels of analysis in CSR | (a) Institutional level → legitimation of organisational actions in so far as they accord with institutionalised norms and values. General societal expectations and framing and implementation of these in practice (b) Organisational level → organisations need to take responsibility for their actions otherwise they can be held legally accountable for their actions and non-actions (c) Individual level → morality and ethics of individual managers in their relationships with stakeholders | | Neoclassical economists (Friedman) | Argue that business owes abstractions such as society nothing. They believe that they don't owe it to anyone to follow any CSR projects and consider it irrelevant especially if it's a profit business. | | Stakeholder | Any person with an interest in the activity of an organisation. We can also restrict this definition to people whom the organisation affects with their activities such as owners, investors, employees, trade unions, customers, consumer associations, regulators, suppliers etc. | | Relevance | Actual investments in the organisation make them susceptible to risk from the organisation's activities. Relevant stakeholders involve temporalities eg if businesses are only looking into the short term, they will pay the most attention to stakeholders whose impact is more immediate on their day-to-day operations. Eg investors and stock market analysts. | | Interpretation CSR | Thinking paradoxically - sometimes launching products because they seem to offer sustainable innovation, even if theta re not immediately profitable is better. Eg growth of Tesla | | Corporatism (social partnership) | In some countries the state encourages cooperation among these major stakeholders, stakeholders who increasingly adopt the rhetoric of CSR. In some countries such as Austria and Germany, it starts to feel more and more like a 'law' to include some form of CSR. | | Focuses on CSR (Hollerer) | (a) Sustainability of profits, people ad planet (Tripple bottom line) (b) Good corporate governance and enhanced transparency (c) Stakeholder management as a key task of managing divergent interests (d) Philanthropy and support of societal groups are deployed to demonstrate CSR for less privileged members of society (done through charity work for example) | | Stakeholders & non-humans | Animals and plants are also stakeholders. In CSR we sometimes give ethical responsibilities to organisations relating to animals, making them a stakeholder. We must consider the moral feelings of animals. Animal ethics is most seen in the food or pharmaceutical industries. Unnecessary suffering in animals etc. | | Corporate greening (new corporate environmentalism) | Involves adopting green principles and practices in as many facets of the business as it is possible to do. Espousal of 'green' values, which are becoming increasingly institutionalised with the realisation that sustainable production is equivalent to more efficient production. An increase since the 2017 global warming conference. Green production that uses less energy, green materials that recycle and aim for 0 waste, green transportation, green facilities and educating others about how to be green. | | Factors for a successful green learning organisation | (a) Lifelong learning → making sure an organisation is really a learning organisation, using both single and double-loop learning. (b) Developing critical thinking skills → giving employees confidence in critical reflection on how things are being done now and encouraging them on new ideas on how to make it better (c) Building citizenship capabilities → employees are not just employees, they are citizens that want to do something better for the Earth. (d) Fostering environmental literacy → encouraging others to learn about environmental problems, causes, consequences & solutions (e) Nurturing ecological wisdom → understanding of the web of life, learning how to be responsible, ethical and sustainable and how to behave that way | | Building green learning | (a) Creation of a public sphere → organisations can become actively involved in educating their members in green debates as real people instead of just employees (b