Lecture -- Session 1[1]

8/11/2019 Lecture -- Session 1[1]

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ASSISTANTPROFESSOROFMANAGEMENTMichael E. Dobbs, Ph.D.

Managers & Managing (Ch. 1)Evolution of Management Thought (Ch. 2)

The Manager as a Person (Ch. 3)

Ethics & Social Responsibility (Ch. 4)

Perception & Decision Making (Ch. 7)

Planning & Strategy (Ch. 8)

Organizational Structure & Culture (Ch. 10)


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Traditional View of Managers

Planning, Organizing, Leading, Controlling

Two Researchers Views

Henry MintzbergRoles of Managers

Fred LuthansActivities of Different Types of Managers


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What Managers DoTraditional View

Planning

Goals

Strategy

Organizing

Creating structure

Determining responsibilities

Leading

Articulating vision

Energize organizational members

Controlling

Evaluation of organizational & individual performanceMake adjustments


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What Managers DoMintzbergsInterpersonalRoles

Figurehead

Ceremonial duties (e.g. CEO ribbon cuttings)

Fulfilling expectations of the position

Leader

Hiring and training staff

Motivating employees

Liaison

Contacts outside vertical chain of command

Inside and outside organization


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What Managers DoMintzbergsInformationalRoles

Monitor

Environmental scanning

Information evaluation

Disseminator

Information distribution to subordinates from higher up

Information distribution to subordinates from each otherSpokesperson

Speaks on behalf of unit managed

Provides information to superiors or outsiders


7/64ASSISTANTPROFESSOROFMANAGEMENTMichael E. Dobbs, Ph.D.

What Managers DoMintzbergsDecisionalRoles

Entrepreneur

Project initiation

Adaptive change

Disturbance Handler

Environmental shocks

Competitive shiftsResource Allocator

Time & $ management

Personnel assignments

Negotiator

Formal negotiations (e.g. unions, suppliers, etc.)Informal negotiations (e.g. between two employees)



What Managers DoLuthans

Four Categories of Managerial Activity

Communication

Traditional Management

Human Resources

Networking

Do all managers spend their time the same way?Luthans looked at three types of managers

Averagemanagers (performance average, not promoted)

Effect ivemanagers (performance very good, maybe promoted)

Successfu lmanagers (performance maybe good, highly promoted)




AverageManagers Time

Most: Traditional Management

Least: Networking/HR

HR

20%Comm

29%

Trad Mgt

32%

Network

19%




Effect iveManagers Time

Most: Communication

Least: Networking

HR26%

Comm

44%

Trad Mgt

19%

Network11%




Successfu lManagers Time

Most: Networking

Least: HR/Traditional

HR

11%

Comm

28%

Trad Mgt

13%

Network48%



Classical Views

Frederick TaylorScientific Management

Max WeberBureaucratic Management

Henri FayolAdministrative Management

Implications and Repercussions

Behavioral Views

Early Efforts

Taylor, Follett, and the Hawthorne Studies

1960s 1970s

Maslows Hierarchy of Needs

McGregors Theory X / Y

Contingency Theory

Timeline



Frederick TaylorScientific Management

Study & experiment with tasks & workers

Time-and-motion techniques

Simplification, specialization, & coordination of tasks increases efficiency

Codify best methods

Create written rules and SOPs (standard operating procedures)

Match workers and jobsSelect workers with right skill set for jobs

Provide adequate training

Motivate workers

Establish fair performance standards

Bonuses for exceeding standards, developing more efficient processesImpact

Positive: Increased efficiency dramatically

Negative: Management misuse dehumanized workers



Max WeberBureaucratic Management

Managers authority derived from organizational position

Rather than personal characteristics

Merit determines position

Rather than non-job-related qualities

Positions roles should be clearly identified

Not dependent on an individuals abilities or preferences

Hierarchy of authority

Reporting structure provides accountability & stability

Organizational control through policies

Rules, standard operating procedures, organizational norms

ImpactPositive: Increased effectiveness driven by meritocracy, stability, interchangeability

Negative: Inefficiencies due to red tape, impersonal tasks, organizational politics



Henri FayolAdministrative Management

Unity of Command

Subordinates should only receive commands from a single superior

Chain of Command

Authority & communication through each level of an organization (not skipped)

Divisional Structure

Clearly defined divisional roles/responsibilities subject to common authority

Centralization/Decentralization

Compulsory centralization with greatest possible individual initiative (given each case)

Organization Charts

Maps all of these functions and aids in addressing disruptions (e.g., deaths)

ImpactPositive: Foundational to modern management theory

Negative: Challenged now by more organic organizational structures



Behavioral Views: Early Efforts

Taylor, Weber, & Fayol all had behavioral components to their ideas

Instead, frequently implemented in a purely mechanistic manner by management

Mary Parker Follett

Worker-focused ideas vs. management-focused ideas

Workers are human beings not simply resources to be deployed

Cooperation with workers will yield greater results than domination of workersIdea of Transformational Leadership

Writings influenced all the later Behavioral Management theorists

Hawthorne Studies

Western Electric (in Chicago) from 1924-1932

Tested effects of illumination on worker fatigue and performanceResults: It didnt matter as long as the light was brighter than moonlight

Later analysis yielded the Hawthorne Effect:

Workers improve if they think management cares



Behavioral Views: 1960s 1970s

Abraham Maslow

Applied psychological ideas to management

Theory of needs

Apex: Self-Actualization Needs

Very mixed empirical support, but influential



Behavioral Views: 1960s 1970s

Abraham Maslow

Applied psychological ideas to management

Theory of needs

Very mixed empirical support, but influential

Douglas McGregor

Workers inherently dislike work &will avoid if possible

Managers must closely superviseworkers

Strict controls with well-definedrewards & punishments neededto manage workers

Workers naturally put forth physicaland mental effort in their work

Managers should create settingsand provide resources to fosterinitiative and allow self-direction toflourish

Decentralized authority rather thancommand and control authority ispreferred


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0%

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1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

%ChangeinWo

rkerProductivityL

evel

GNP/(Workers*HoursWorked)

PercentageofU.S.W

orkersBelongingtoUnions Evolution of Management Thought Timeline

Hawthorne

Weber

Taylor Fayol

Maslow

Scientific, Bureaucratic, & Administrative Management

Theory X Theory Y

Contingency Theory

Behavioral ManagementFollett

LegalUnion

Constraints

Line:Worker Productivity

Shaded Area:

Union Membership


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0%

1%

2%

3%

4%

5%

6%

0%

5%

10%

15%

20%

25%

30%

35%

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

%ChangeinWo

rkerProductivityL

evel

GNP/(Workers*HoursWorked)

PercentageofU.S.W

orkersBelongingtoUnions Evolution of Management Thought Timeline

Hawthorne

Shaded Area:

Union Membership


Shaded Area:

Union Membership


Weber

Taylor Fayol

Maslow

Scientific, Bureaucratic, & Administrative Management

Theory X Theory Y

Contingency Theory

Behavioral ManagementFollett

LegalUnion

Constraints


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Personality

Popular FrameworksMyers-Briggs Type Indicator (MBTI)

Big Five Model

Selected Attributes

Locus of Control

Self-MonitoringType A, Type B

Machiavellianism

Emotions: Concepts & Emotional Intelligence

Attitudes: Components & Research

Values: Types & Impact


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Personality Frameworks: Myers-Briggs Type Indicator (MBTI)

Based on psychological type theory

Developed by Swiss psychiatrist Carl Jung (1875-1961)

Isabel Briggs Myers (1897-1980, pictured)

Wanted a more accessible version for the general public

Developed first MBTI during WWII

Got help from her mom, Katherine Briggs (1875-1968)

16 Types from 4 Characteristics (e.g., ESFJ)

(E) Extraversion ----- (I) Intraversion

(S) Sensing ----- (N) Intuitive

(T) Thinking ----- (F) Feeling

(P) Perceiving ----- (J) Judging

Impact

Incredibly popular: 2 million people per year in U.S. assessed

Supporting evidence of validity is limited


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Personality Frameworks: Big Five Model

Five basic dimensions underlie all others

Impressive body of research supports this model

Gregarious, assertive, friendly,

sociable, affectionate, outgoing.

Cooperative, warm, trusting,

care about others, likeable.

Cold, unsympathetic, distrustful

of others, uncooperative.

Reserved, timid, quiet, keep to

themselves, like alone time.

Responsible, careful, reliable,

persistent, careful, responsible.

Calm, self-confident, secure,

optimistic, positive outlook.

Creative, curious, original,

broad interests, risk taker.

Easily distracted, flighty,

unreliable, disorganized.

Anxious, insecure, stressed,

critical of self and others.

Conventional, tried & true,

familiar, narrow interests.


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Additional Selected Attributes of Personality

Locus of ControlInternals: Believe they control their own destinies and outcomes (up to them)

More likely to get and perform well in managerial and professional jobs

Externals: Believe outcomes controlled by outside forces (fate, genetics, position)

More likely to be dissatisfied with jobs in general; better with structure & routine

Self-MonitoringHigh Self-Monitors: Able to adapt behavior to fit situational factors (chameleon)

Low Self-Monitors: Display true selves consistently in all situations

Type A, Type B

Type A: Active, impatient, multitasking, quantity over quality, fun for achievement

Type B: No urgency, achievements private, play for fun, relaxation without guilt

Machiavellianism

High Machs: Pragmatic, emotional distance, ends justify the means, manipulation, win

Productive: Face-to-face interactions, minimal rules/regs, zero-sum games


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Emotions: Concepts & Emotional Intelligence

ConceptsAffect: Generic term describing a broad range of feelings (including mood & emotion)

Mood: Feelings less intense than emotions and which lack contextual stimulus

Emotion: Intense feelings, frequently a result of stimulus and short-lived

Emotional Intelligence (Research: differentiating factor in successful leaders)

Self-Awareness: Being aware of what youre feeling.Self-Management: The ability to manage ones own emotions and impulses.

Self-Motivation: The ability to persist in the face of setbacks and failures.

Empathy: The ability to sense how others are feeling.

Social Skills: The ability to handle the emotions of others.


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Attitudes: Components & Research

ComponentsCognitive: Opinion or belief; discrimination is wrong

Affect: Feelings or emotions; I dont like it when she discriminates against _____.

Behavioral: Action or intent to act; I avoid Mary because she discriminates.

Research

Cognitive Dissonance: Incompatibility between attitudes, behaviors, and combosAttitudes drive behavior sometimes, but not always

Behavior can lead people to inferwhat their attitudes are

Applications

Job satisfaction: a persons general attitude toward his or her job

Job involvement: degree to which a person psychologically identifies with job

Organizational commitment: degree to which an employee identifies withemployer and desires to maintain membership in the organization


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Values: Impact

Values drive attitudes and behavior on an individual level

Values form the foundation of motivation

Values can inform or cloud rationality and objectivity

Values, collectively, create unique organizational cultures

Values drive personal and organizational ethics and social responsibility


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Business Ethics: Applied philosophy of right and wrong behavior in

business settings based on societal normsEthics & Law

Ethical Sources

Stakeholder Approach to Ethics

Common Perspectives

Social Responsibility

Four Approaches


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Ethics & Law

Laws define acceptable/unacceptable behavior in society as determined bythose in power

Neither ethics nor laws are immutable: They are both dynamic and fluid

Slavery was legal in the U.S. 200 years ago; but ethical?

Having a beer in the 1920s was illegal; but unethical?

Selling addictive, slow-killing tobacco is legal; but ethical?Eating a pot brownie today is illegal; but unethical?

The conclusion, its legal so it must be ethical does not hold

Neither does its corollary, its ethical, so it must be legal


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Ethical Sources:


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Stakeholder Approach: Examine issue through lenses of various groups


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Common Perspectives on Ethics

Utilitarian: The greatest good for the greatest number of peopleDifficult to know/agree who is impacted and how much

Individual/Human Rights: Protect and maintain fundamental human rights

Which/whose rights get priority?

Distributive Justice: Fair, equitable, impartial treatment of all

What characterizes fairness?Practical: Acceptable public communication

How do disclosure preferences and personal networks impact decision rule?

Golden Rule: Treat others like you would want to be treated

Should one assume everyone wants the same things?


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Social Responsibility: Continuum of Approaches

Obstructionist

Engages in

unethical and

illegal behavior.

Defensive

Adheres to the

letter of the law.

Accommodative

Acts legally and

ethically with some

stakeholderawareness.

Proactive

Goes above and

beyond societal

expectations andonly stockholders

preferences.


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Perception: Process of organizing and interpreting sensory impressions in

order to give meaning to the environmentAttribution Theory

Selective Perception

Halo Effect

Projection

Stereotyping

Decision Making

Models: Rational vs. Bounded Rationaility

Unskilled & Biased Decision Makers

Availability Heuristic

Escalation of Commitment

Intuition


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Attributionprocess of ascribing reasons for a persons behavior, or

attributing their behavior to particular causesTwo forms of attribution

Dispositional (internal; someones disposition)

Situational (external; someones situation)

Two common attribution errors

Fundamental attribution error (applies to other people)

Tendency to attribute negative behavior in others to dispositional (internal) sources

Tendency to attribute positive behavior in others to situational (external) sources

Self-serving bias (applies to self)

Tendency to attribute negative behavior of s el f to situational (external) sources

Tendency to attribute positive behavior of s el f to dispositional (internal) sources


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Selective Perception:

Tendency to focus on or only see certain aspects of the environmentThings with which were familiar or know

Things to which were attracted or desire

Tendency to ignore or fail to acknowledge other aspects of the environment

The environment is too vast for our finite minds to grasp

We selectively ignore most of what goes on around usExample: Buying a new car

Have you ever noticed that when you buy a new type of car (or just shop a lot for one),you start those vehicles everywhere? Do you think they just started appearing? No,there were always there, but you just didnt see them.


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Halo Effect

Drawing a general impression about someone based on a single characteristicThis characteristic may or may not be correlated with the others

The judgments can be positive or negative

Examples:

A student is well-mannered

Professor may assume the student is bright, hard-working, and diligentA company performs well

Analysts/press assume the company has high quality leadership, listens tocustomers, follows industry leading practices, etc.

An employee is consistently late to work

Supervisor assumes employees work is shoddy, doesnt follow directions, etc.


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Projection

Attributing ones own characteristics to othersPreferences, abilities, values, goals, beliefs, personality, etc.

The world is perceived as more homogeneous than it really is

Examples:

You love joking around and playing practical jokes

You dont understand why Bob got so mad when you played that joke on him. Youwould have thought it was hilarious!

You are a quiet introvert and value your alone time

You cant understand why your coworkers try to involve you in their lives so much

at work


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Stereotyping

Judging someone on the basis of their group membershipSimplifies thinking about the one person being assessed

Simplifies thinking about the group

Examples:

Heather is an extrovert, so shell be good at sales (may or may not be correct)

Assumes extroverts are good at sales Assumes she shares same traits that extroverts have that make good salespeople

Mark (age 60) wont be good at social media

Assumes older people lack technical skills

Assumes Mark shares same traits as other older people


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Decision Making

Models

Clear & unambiguous

All known & analyzed

Complete & accurate

Non-biased & accurate

Optimal sought

Framing difficulties; onlysee symptoms

Only 1 or a few analyzed;sequentially

Incomplete & biased

Decision makers unskilled,and biased (next slide)

Satisficing


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Unskilled & Biased Decision Makers

Decision makers use shortcuts called heuristicsAvailability heuristic: basing judgment on convenient or readily available information

Based on more emotional, vivid, life-changing, or recent events

Not a balanced perspective; overweighting of some available data

Escalation of commitment

An increased commitment to a previous decision in spite of negative information Throwing good money after bad

Frank and Sherry have been dating 4 years. Frank admits its been a rocky

relationship filled with heartache. You ask him if he will end the relationship. Hereplies that hes going to ask Sherry to marry him. Why? Frank replies, I have too

much invested in the relationship!

Intuition: All decision makers rely on intuition and heuristicsMost of the time it leads to poor decisions

It can be effective: When the decision maker is a true expert


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AnalysisMacro-Environment

Industry

Internal

Strategic Options

Generic Strategies

Integration

Diversification

Cooperative

Choice and ImplementationMission/Purpose

SWOT Analysis

Goals, Objectives & Planning


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Macro-Environment

Economic Factors (GDP, interest rates, credit, unemployment, inflation, etc.)Sociocultural Factors (demographics, environmental concerns, education, etc.)

Government & Legal Factors (taxes, regulations, spending, IP, trade, etc.)

Technological Factors (computing, telecommunications, infrastructure, etc.)

Industry Analysis: Assessing threats of

Competitive Rivalry (price cuts; higher spending on R&D, service, mkt, etc.)

New Entrants (higher costs to maintain/build higher entry barriers)

Buyer Power (price concessions; demand better quality & service)

Supplier Power (higher prices; limit product/service features/quality)

Substitutes

Perform same/similar function as products in the industry, but by different means

e.g., Substitutes for autos: motorcycles, public transport, bicycles, walking, etc.

Puts a ceiling on prices; drives up costs related to performance, mkt, service, R&D


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Internal

Functional Analysis (Management, Marketing, Finance, Operations)Competencies

Corecompetence: The best thing we do

Set of skills across the organization that exploits resources and produces addedvalue

Example: Hondas core competence is designing and building efficient enginesDist inct ivecompetence

A core competence no other organization possesses

Use VRIO to assess core and distinctive competencies

Is there Value to customers/organization? Will customers pay?

Is there Rarity among competitors? Are others providing same?

Is there Inimitability for future competitors? Can others easily copy? Is there Organization to fully exploit it? Is the firm fully leveraging it?


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Generic Strategies

Low Cost Leadership: Achieving the lowest cost structure in the industryDifferentiation: Creating extra value so customers are willing to pay a premium

Integration

Vertical

Backward: Extending operations into supply sources

Forward: Extending operations closer to the end user

Horizontal: Extending operations at the same point in the supply chain

Diversification

Related (concentric): Extending activities outside industry but in a related area

Unrelated (conglomerate): Extending activities in an unrelated field

Cooperative

Strategic Alliances: with suppliers, distributors, competitors, complementors

Joint Ventures: new, separate legal entity is formed between 2 or more orgs

Collusion: cooperating with competitors to fix prices or limit costs (illegalities)


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Mission & Purpose

Four organizational outcome possibilitiesComp et it ive Disadvantage underperformance relative to other organizations in thesame industry

Comp et it ive Par i ty performance on par with other organizations

Comp et it ive Adv antageSuperior performance relative to industry peers

Sustainable Compet i t ive Ad vantageOutperforming peers for prolonged time

Mission/Vision Statements

Mission: overarching aim of the organization

Bristol-Myers Squibb: To discover, develop and deliver innovative medicines thathelp patients prevail over serious diseases.

Vision: aspirational ideals of the organization

Whole Foods: Whole foods, whole people, whole planet.

Link strategy to purpose: Whatever the owners prioritize

Publicly held: maximize shareholder value

Privately held: whatever the owners want

Profit is usually one motive, but seldom is it even the highest priority


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SWOT Analysis

ElementsStrengthsareas in which the organization currently excels

Weaknessesareas in which the organization currently is weak

Opportunitiesconditions in the environment the organization is not capitalizing onnow, but could

Opportunities for Nike?

Children are more interested now than ever before in wildlife preservation

Form a joint venture with Foot Locker

Threatspotential or future conditions that may negatively impact the organization

UseGeneric assessment

Evaluative tools

Weighted SWOT matrix

TOWS matrix

MOWST matrix


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Goals, Objectives & Planning

Common ToolsBalanced Scorecard

In four areas

Financial, customer, internal, and learning & growth

Four different assessments

Objectives, measures, targets & initiatives

Dashboards: Key metrics for managers/decision makers

Frequently customized by internal IT

Organizational-specific methods and tools

Successful ImplementationStructure/Culture

CommunicationLeadership

Motivation


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Organizational Structure

Terminology & ConceptsTypes (with example org charts)

Organizational Culture

Key Concepts

How Culture is Created

How Culture is Sustained


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Terminology & Concepts

Tall vs. flatLevels of authority within an organization

Tall has more hierarchical levels, flat has fewer

Span of control

Number of subordinates reporting to a manager

Small SOC (5 or 6) More oversight, more managers, taller structure

Larger SOC (1020)

More decentralization, fewer managers, flatter structure

Line vs. staff

Direct l ineor chain of command

Manufacturing, service, or whatever the primary company business is

Staff serves a specialist function

Like accounting, finance, HR, etc.


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Types of Structures

Simple

Functional

Product

Geographic

Market

Matrix

Organic


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Types of Structures

SimpleFunct ional

Product

Geographic

Market

Matrix

OrganicVP

Controller

Director

IT

Director

HR

VPIllinois

VP

Indiana

VP

Michigan

VPMerchandising

VP

Advertising

VP

Research


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Types of Structures

SimpleFunctional

Product

Geographic

Market

MatrixOrganic

VP Finance

VP Marketing

VP

Manufacturing

VP Finance

VP Marketing

VP

Manufacturing

VP Finance

VP Marketing

VP

Manufacturing


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Types of Structures

SimpleFunctional

Product

Geographic

Market

MatrixOrganic

VP Finance

VP Marketing

VP

Manufacturing

VP Finance

VP Marketing

VP

Manufacturing

VP Finance

VP Marketing

VP

Manufacturing


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Types of Structures

SimpleFunctional

Product

Geographic

Market

MatrixOrganic

VP Finance

VP Marketing

VP

Manufacturing

VP Finance

VP Marketing

VP

Manufacturing

VP Finance

VP Marketing

VP

Manufacturing


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Types of Structures

SimpleFunctional

Product

Geographic

Market

Matr ix

Organic


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Types of

StructuresSimple

Functional

Product

Geographic

MarketMatrix

Organic


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Organizational Culture

Values and behaviors that are shared, encouraged, and approved by themajority of organizational members or those in power

The way things get done around here

Culture variations

Dominant culture: overarching

Subculture: aligned with organization but with additions or added emphasisCounterculture: opposed to dominant culture

Cultural Continuum


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Founders Personal Characteristics

Values, Perceptions, Personalities, Attitudes, etc.Example: Steve Jobs & Apple

Early Decisions create Path Dependence

Structure

Egalitarian structure at Intel

Reward systemsSouthwest Airlines and humor

Pivotal decisions

Wachtell, Lipton and retainers


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Stories espouse what the organization values

About founders, key moments in history, extraordinary events, etc.Rites and rituals reinforce culture with recurring activities

New employee orientations, award ceremonies, performance celebrations

Symbols convey culture symbolically

Art, dcor, logos, office layout, parking spaces, etc.

Jargon creates a sense of membership and belonging

Technical, organization-specific, profession-specific, etc.

Human Resources

Homologous reproduction in hiring is a natural occurrence

Promotions, raises, hiring, terminations reinforce values


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Human Resource Management (Ch. 12)

Motivation and Performance (Ch. 13)

Leadership (Ch. 14)

Effective Groups & Teams (Ch. 15)

Organizational Communication (Ch. 16)

Organizational Conflict, Politics, & Negotiation (Ch. 17)Management Module Exam

100 multiple choice questions (Scantron format)

Minimum score to pass module: 70%


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Documents

Lecture -- Session 1[1]