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© John Wiley & Sons Australia
MGMT 110 Introduction to Management
• LECTURE 3
• Effective Teams (Chp 13)
• The Internal Environment – Culture and Diversity (Chp 3)
• Ethics (Chp 4)
© John Wiley & Sons Australia
MGMT 110 Introduction to Management
• Effective Teams (Chp 13)
© John Wiley & Sons Australia
Definition of a Team
• A team is a group of individuals who work cooperatively to accomplish goals that couldn’t be achieved without participation and support.
• A team is different from a group which is a collection of 2 or more people who interact, often at a common task
© John Wiley & Sons Australia
Stages of Group and Team Development
© John Wiley & Sons Australia
Behavioural Norms in Groups and Teams
• Norms: standards of behaviour that the group accepts and expects of its members.
• Norms can not usually be generalised across groups.
• Four sets of factors contribute to norm conformity:– Factors associated with the group.– The initial stimulus that prompts behaviour.– Individual traits.– Situational factors.
© John Wiley & Sons Australia
Informal Leadership in Teams
• Informal leader: A person who engages in leadership activities but whose right to do so has not been formally recognised by the organisation or group.
• Formal leaders and informal leaders may be the same people but need not be.
• Informal leaders who work towards team/ organizational goals are an asset.
© John Wiley & Sons Australia
Characteristics of Teams
• Each individual in a team has a part, or a role to play, to help the group achieve its goal.
• One of the best known models on team roles is by Dr Meridith Belbin.
• Belbin argued that understanding team roles is essential for selecting a balanced group and for diagnosing a dysfunctional group.
© John Wiley & Sons Australia
Role Structures
© John Wiley & Sons Australia
Managing Work Teams at Skyrail Rainforest Cableway
Footage courtesy John Campling
Dial-Up Broadband
© John Wiley & Sons Australia
Characteristics of effective teamwork
• Mickan & Rodger (2000) have argued that effective teams are the result of characteristics at three organizational levels - – Organisational level (structure) – Team level (processes)– Individual level (member contribution)
• We are interested mainly in the team and individual levels at this stage. Why?
© John Wiley & Sons Australia
Characteristics of effective teamwork
• Organisational level (appropriate structure)
• Clear purpose • Appropriate culture • Specified task • Distinct roles • Suitable leadership• Relevant members• Adequate resources
© John Wiley & Sons Australia
Characteristics of effective teamwork
• Team level (undertaking processes)• Coordination• Communication• Cohesion• Decision making• Conflict management• Social relationships• Performance feedback
© John Wiley & Sons Australia
Characteristics of effective teamwork
• Individual level (personal contribution) • Self knowledge • Trust • Commitment • Flexibility
© John Wiley & Sons Australia
MGMT 110 Introduction to Management
• The Internal Environment – Culture and Diversity
• Chapter 3
© John Wiley & Sons Australia
The Organization's Internal Environment
• An organization's internal environment is shaped by conditions and forces within the organization.
• Its major components include -– owners or trustees (legally responsible)– the board of directors and governance
structure (may be legally responsible)– employees and organised labour
and the organization's culture
© John Wiley & Sons Australia
In the organization you are studying, who is in charge?
• The owners?• The management?• The employees?• Is it possible that the power in the
organization can be held by more than one person?
• Why?
© John Wiley & Sons Australia
The Organization and Its Environment
© John Wiley & Sons Australia
Organisational Culture
• Culture is to an organization as personality is to an individual.
• Orgn culture therefore defies objective measurement or direct observation. Attempts have been made to define its characteristics.
• Orgn culture comprises characteristics that embody a set of values that helps an organisation’s stakeholders, both internal and external, understand what it stands for, how it does things and what it considers important.
• Orgn culture plays a major role in shaping the behaviour of managers and staff.
© John Wiley & Sons Australia
Primary Characteristics of Orgn Culture
1. Innovation and risk taking
2. Attention to detail
3. Outcome orientation
4. People orientation
5. Team orientation
6. Aggressiveness
7. Stability
© John Wiley & Sons Australia
Importance of Orgn Culture
• Links to organizational identity, reputation and aspirations.
• Orgn Cultures are rarely uniform across an organisation…there can be subcultures.
• Culture can shape overall effectiveness / ineffectiveness and long-term success / failure of an orgn.
© John Wiley & Sons Australia
Determinants of Organisational Culture
1. The strength and nature of beliefs and values of the organisation’s founder/s
2. The societal norms of the organisation’s host country
3. Problems of external adaptation – incorporating the laws and norms of the society
4. Problems of internal integration – internal mission and values established by owners / managers vs norms of the workforce
© John Wiley & Sons Australia
What characteristics of organisational culture appear to be
most important at Ocean Spirit Cruises?
Footage courtesy John Campling
Dial-Up Broadband
© John Wiley & Sons Australia
Managing Organisational Culture
• Managing culture is essential but difficult. Steps include:– Understanding the determinants of
culture.– Deciding if the culture needs to be
maintained or changed.– If the culture is to be maintained,
reinforcing it with symbols, ceremonies, rewards and modeling.
– If it is to be changed, being clear about how. External change agents may help.
© John Wiley & Sons Australia
Managing Diversity in organizations
• Australia is a diverse country• Multiculturalism is not new to Australia
– Prior to 1788 the continent was inhabited by more than 200 Indigenous groups
– First Fleet; Gold Rush– Post-World War II immigration boom– International events– Globalization
• Today, new social policies and management practices have emerged to foster cohesive links among all Australians
© John Wiley & Sons Australia
The Nature of Diversity
• Definitions of diversity vary.• Diversity is best conceptualised as a
continuum – from homogeneity to heterogeneity
• Broadly defined diversity exists when members of a group or organisation differ from one another along one or more important dimensions such as age, race, sex or ethnicity
© John Wiley & Sons Australia
Dimensions of Workforce Diversity
© John Wiley & Sons Australia
Equity in Diversity
• Workplaces provide vastly different experiences for individuals in terms of access, participation, opportunities and outcomes.
• Equity is based on the assumption that all persons have the right to fair treatment, irrespective of gender, race, socioeconomic background, impairment and so on.
© John Wiley & Sons Australia
The Cause and Impacts of Increasing Diversity
• Increasing diversity among employees in Australian organisations reflects social change.
• Factors that have contributed to the increase in diversity are:– changing demographics in the labour
market, changes in the legislative framework, the globalisation of markets and the recognition of value in a diverse workforce.
© John Wiley & Sons Australia
The Cause and Impacts of Increasing Diversity
© John Wiley & Sons Australia
Changing Demographics in the Labour Market
• A range of factors are changing the demographics of the contemporary labour market in Australia.
• These factors include – changing gender roles– the strengthening profile of indigenous
people, ethnicity issues,– the growing participation of people with
disabilities, and– Australia’s ageing population.
© John Wiley & Sons Australia
Legislative Changes
• Australia’s legal obligations regarding diversity arise from ratified treaties made with the United Nations (UN) and the International Labour Organisation (ILO).
• Both federal government and the state governments have anti-discrimination legislation
• This legislation encourages change in relation to access, status, power and rewards for people in the workplace
© John Wiley & Sons Australia
Globalisation
• Globalisation was initially conceptualised as the worldwide process of economic and industrial restructuring.
• Today globalisation is also understood to include the process of continual change through the opening up of markets
• Managers now have to deal with diversity on a global scale
© John Wiley & Sons Australia
Opportunities and challenges of a diverse workforce
• Diversity provides both opportunities and challenges for organizations.
• Diversity can be – a force for social change– a source of competitive advantage– a force for organizational change – a source of conflict
© John Wiley & Sons Australia
Experiences of Diversity in Other Countries
• Managers must be prepared to confront a variety of diversity issues when they conduct business in other countries and in other markets.
• Diversity in:– New Zealand– The Pacific Rim– Japan– South Africa– India
© John Wiley & Sons Australia
Managing Diversity in Organizations
• Individual strategies for dealing with conflict related to diversity include:– Understanding the nature and meaning
of diversity– Empathising with others– Overcoming prejudice– Communicating openly
© John Wiley & Sons Australia
Managing Diversity in Organisations
© John Wiley & Sons Australia
Organisational Approaches to Equity and Diversity Management
• Organizations play a fundamental role in managing diversity
• Equal employment opportunity provisions enshrined in legislation have made aspects of managing equity and diversity compulsory
• Approaches and the outcomes of equity and diversity management vary across organizations
© John Wiley & Sons Australia
Organisational Approaches to Equity and Diversity Management
• The range of approaches to equity and diversity management include:– Traditional approaches to diversity– Legislative approaches to diversity– Anti-discrimination approach– Affirmative action approach– Non-legislative approaches to diversity
© John Wiley & Sons Australia
Non-legislative Approaches to Diversity
• Productive diversity – This approach involves using people’s different skills and abilities to achieve the best possible productivity or economic outcome.
• Reasons for using difference include:– the mutual benefit to both the
organisation and its employees– the organisation’s competitive
advantage in the marketplace.
© John Wiley & Sons Australia
Non-legislative approaches to diversity
• Valuing diversity: The use of mutual accommodation and adaptation to achieve best management practice and social justice.
• Involves: – Cross-cultural education, including
information sharing, mentoring– networking, is recommended as a
means of assisting individual and group change
© John Wiley & Sons Australia
Organisational Strategies for Managing Diversity
• Organisations play a fundamental role in managing diversity through:– Culture– Organisational policies– Organisational practices– Communication– Training
• Organisational culture is the most appropriate context within which diversity can be addressed.
© John Wiley & Sons Australia
Towards the Multicultural Organization
• Organizations can be classified according to their styles - the way in which they respond to diversity:– The exclusionary organization– The club organization – The compliance organization – The affirmative action organization – The redefining organization
© John Wiley & Sons Australia
Towards the Multicultural Organisation
• The multicultural organisation:– supports efforts to expand the notion of
multiculturalism – reflects the contribution and interests of
diverse cultural groups throughout all of its activities.
– has achieved high levels of diversity– can fully capitalise on the advantages
of the diversity– has few diversity-related problems.
© John Wiley & Sons Australia
Towards the Multicultural Organization
• The multicultural organization: – is characterized by pluralism. – achieves full structural integration – achieves full integration of informal network. – is characterized by an absence of prejudice
and discrimination.– exhibits no gap in organizational identification
based on identity differences. – has low levels of intergroup conflict
© John Wiley & Sons Australia
Strategic Management of Diversity
• Organizations need to think strategically about how they intend to manage diversity.
• Strategic management of equity requires the recognition of :– any current inequity to be addressed and– the outcomes desired before any
implementation takes place
• Strategic planning will enable the organization to develop a cohesive approach to diversity management.
© John Wiley & Sons Australia
MGMT 110 Introduction to Management
• Ethics (Chapter 4)
© John Wiley & Sons Australia
Learning Objectives
• Learning Objectives:– Understand the concept of ethics in
contemporary society.– Discuss the formation of individual
ethics.– Discuss the meaning of the term
‘corporate ethics’ and specify to whom an organisation might be considered responsible.
– Describe some of the activities in which an organisation might engage to manage social responsibility.
© John Wiley & Sons Australia
Ethical Challenges
• Behaviour may be lawful but not ethical in intent or process or effect.
• Examples to consider:– Taylorism: production without much
thought for the welfare of the worker.– Henry Ford: exploitative and autocratic
management.– Sweatshops producing high-priced
sportswear.– CEO salaries.
© John Wiley & Sons Australia
Ethical Challenges
Why worry about ethics in organizations?
© John Wiley & Sons Australia
Moral Development and the Concept of Ethics
© John Wiley & Sons Australia
Ethical Theory Classifications
• Consequentialist theories– eg. John Stuart Mill’s utilitarian ethic,
“the greatest good for the greatest number”
• Rights, duties and contract-based theories– eg. Immanuel Kant
• Virtue ethics– eg. Japanese ‘kaizen’ (continuous
improvement)
© John Wiley & Sons Australia
Individual Ethics in Organizations
• Ethics: – An individual’s personal beliefs regarding
what is right and wrong, good or bad.• Ethical behaviour:
– Behaviour that conforms to generally accepted social norms.
• Whether behaviour is ethical or not is in the eye of the beholder. Increasingly, there are multiple (pluralistic) views on what is ethical linked to particular cultures.
© John Wiley & Sons Australia
Determinants of Individual Ethics
© John Wiley & Sons Australia
Organizational Ethics and Boards of Directors
• Company directors have a fiduciary responsibility for shareholders’ funds.
• They need to be vigilant, knowledgeable and intuitive in order to pick up unethical or unwise behaviour on the part of management or other directors.
• Laws, regulations and official publications aim to assist directors in meeting their obligations.
© John Wiley & Sons Australia
Managerial Ethics in Organisations
• Managerial ethics: principles and standards that guide individual managers in their work behaviour.
• Three domains of managerial ethics:– How the organisation treats it
employees.– How employees treat the organisation.– How the organisation treats other
economic agents
© John Wiley & Sons Australia
How an Organisation Treats Its Employees
• Recruitment• Selection• Occupational health and safety• Wages• Working conditions (including harassment,
privacy and personal respect)
© John Wiley & Sons Australia
How Employees Treat Their Organization
• ‘Rorting the system’.• Using organizational information
improperly.• Giving or selling company secrets.• Conflicts of interest.
© John Wiley & Sons Australia
How an Organisation Treats Its Environment
• Environment includes:– Customers– Suppliers– Shareholders– Competitors– Dealers– Trade unions– Physical environment
© John Wiley & Sons Australia
Ethics and the Whistleblower
• Whistleblowers: Employees who publicly disclose illegal or unethical conduct by others within the organization.
• Principled organizational dissent: The effort by individuals in the workplace to protest about and/or change the status quo because they have a conscientious objection to current policy or practice.
• Whistleblower protection legislation.
© John Wiley & Sons Australia
Two major social views of EthicsSocioeconomics and Economic Rationalism
• There are two major views / perspectives on the role of companies – the agency perspective and the stakeholder perspective– Agency theory is related to neoclassical
economics: Humans are self-interested, rational and materialistic. Self-interest leads to optimal social outcomes.
– Stakeholder theory is related to socioeconomics: Humans live in community and there is a moral dimension to motivation so social benefit, not just financial sustainability and return, should be considered.
© John Wiley & Sons Australia
Corporate Social Responsibility (CSR)
• Corporate social responsibility: The desired behaviour of organisations in regard to economic, environmental and social performance.
• Some managers see adherence to ethical guidelines as an avoidable cost.
• Corporate social responsibility may be good for business — companies on the Dow Jones Global Sustainability Index have outperformed those on the standard index.
© John Wiley & Sons Australia
Corporate social responsibility at Toyota
Dial-Up Broadband
© John Wiley & Sons Australia
Arguments for Corporate Social Responsibility
• Business creates problems and should therefore help solve them.
• Corporations are citizens in our society.• Business often has the resources
necessary to solve problems.• Business is a partner in our society, along
with the government and the general population.
• Making clear and visible contribution to society may be good for business.
© John Wiley & Sons Australia
Arguments Against Corporate Social Responsibility
• The purpose of business in Australian society is to generate profit for owners.
• Involvement in social programs gives business too much power.
• There is potential for conflict of interest.• Business lacks the expertise to manage
social programs.
© John Wiley & Sons Australia
Corporate Ethics, Social Responsibility and the Overpaid Executive
• Is it acceptable behaviour to reward managers at levels 100 times or more that of the average worker?
• Are packages with golden hellos, golden handshakes, golden handcuffs and golden parachutes ethical?
• Research indicates little or no correlation between executive pay and company performance.
© John Wiley & Sons Australia
Managing Ethical Behaviour
• Organizational ethics must start with senior management.
• Code of conduct: A statement of obligations imposed by an organization on its employees or officials, in addition to those specific duties imposed by legislation. May also entail ethical education and ethics committees.
• Code of ethics: A formal written statement of the values and ethical standards that guide a company’s actions.
© John Wiley & Sons Australia
Corporate social responsibility at Quiksilver
Jason Haynes, Director of Sales and Marketing, Quiksilver Australasia
Dial-Up Broadband
© John Wiley & Sons Australia
Managing Social Responsibility
• Recurrent questions:– To whom is the business responsible?– Who in the business is responsible for
the organization's practices?• Approaches that organizations may take to
social responsibility:– Social obstruction, social obligation,
social response, social contribution
© John Wiley & Sons Australia
Social Responsibility, Business and Government
• Governments influence organizations through laws and regulation.
• Business influences government through lobbying and building relationships with members or ex-members of government.
• Most Western governments now legislate about what gifts and benefits politicians can be given and what must be disclosed.
© John Wiley & Sons Australia
Formal Organizational dimensions
• Legal compliance: The extent to which an organization conforms to local, state, federal and international laws.
• Ethical compliance: The extent to which the members of an organization follow ethical (and legal) standards of behaviour.
• Philanthropic giving: The donation by an organization of financial or other resources to support charities or other not-for-profit organizations
© John Wiley & Sons Australia
Informal Organizational Dimensions
• Leadership practices determine organizational ethics.
• Boards of companies and managers have the responsibility of establishing an ethical and socially responsible culture in an organization.
• They will determine the level of morality an organization will possess and ensure that it is maintained.
• Failure to do so can see the reputation of the organization damaged, with negative consequences.
© John Wiley & Sons Australia
Next Lecture
• Thursday 17/12/09• 10.30 – 12.30• 14.G01