Download Summary book Management and Organisational Behaviour and more Summaries Leadership and Team Management in PDF only on Docsity! LAURIE J. MULLINS
MANAGEMENT &
ORGANISATIONAL
BEHAVIOUR
aie AMSIB
Amsterdam School of
International Business
Cr
1 Table of Contents: Chapter 9: Leadership in organisations ..................................................................................... 2 Chapter 10 Understanding management ............................................................................... 14 Chapter 11 Organization structure and design ..................................................................... 25 Chapter 13 Organizational control and power ...................................................................... 34 Chapter 15 Organizational culture and change .................................................................... 44 Chapter 16 Organizational performance and development ................................................ 56 4 • Inspirational or visionary leadership: Based on the personal qualities or charisma of the leader and the manner in which the leadership influence is exercised. • Servant leadership: More a philosophy based on an ethical responsibility of lead0ers. A spiritual understanding of people; and empowering people through honesty, respect, nurturing and trust. • Alernative views of leadership: Broader approaches tot he study of leadership, including shared and distributed leadership, and responsible leadership. Four main styles of leadership by managers: • Tells: the managers identifies a problem, makes a decision and announces this to subordinates, expecting them to implement it without an oppurtunity for participation. • Sells: The manager still makes a decision but recognises the possibility of some resistance from those faced with the decision and attempts to persuade subordinates to accept it. • Consults: The manager identifies the problmem but does not make a decision untile the problem is presented tot he group, and the manager has listened tot he advice and solutions suggested by subordinates. • Joins: The manager defines the problem and the limits within which the decision must be made and then passes to the group, with the manager as a member, the right to make decisions. Three main forces in deciding what types of leadership are practicable and desirable: • Forces in the manager: The manager’s behaviour will be influenced by his or her personality, background, knowledge and experiences and these include: o Value systems o Confidence in subordinates o Leadership inclinations o Feelings of security in an uncertain situation. • Forces in the subordinate: Are influenced by many personality variable and their individual set of expectation about their relationship with the manager. Charateristics of subordinates are: o Strengt of the need for independence. o Readiness to assume responsibility for decision – making. o Degree of tolerance for ambiguity. o Interest in the problem and feelings at to its importance. o Understanding and identification with the goals of the organisation. o Neccesary knowledge and experience to deal with the problem. o Extent of learning to expect to share in decision – making. 5 • Forces in the situation: The manager’s behaviour will be influenced by the general situation and environmental pressures. Characteristics in the situation include: o Type of organisation. o Group effectiveness. o Nature of problems. o Pressure of time. Contingency theories of leadership: Contingency models focus on the interactions between the variables involved in a leadership situation and patterns of leadership behaviour. Major contingency models of leadership include: • Fiedler: Favourability of leadership situation: Leadership behaviour depends on the favourability of the leadership situation.. These are determined by the following variables: o Leader – member relations: Degree to which the leader is trusted and liked by group members, and their willingness to follow the leader’s guidance. o The task structure: Degree to which the task is clearly defined for the group and the extent to which it can be carried out by detailed instructions or standard procedures. o Position power: Power of the leader by virtue of position in the organisation, and the degree to which the leader can exercise authority to influence rewards and punishments, promotions and demotions. • Vroom and Yetton: Quality and acceptance of leader’s decision: o Decision quality or rationality: The effect that the decision has on group performance. o Decision acceptance: Refers tot he motivation and commitment of group members in implementing decision. o The amount of time: Required to make the decision. The Vroom and Yettong Model suggests five main management decision styles: • Autocratic: o The leader solves the problem or makes the decision alone using information available at the time. o The leader obtains information from subordinates but then decides on solution alone. • Consultative: o The problem is shared with relevant subordinates, individually. The leader then makes the decision that may or may not reflect the influence of subordinates. o The problem is shared with subordinates as a group. The leader then makes the decision that may or may not reflect the influence of subordinates. • Group: o The problem is shared with subordinates as a group. The leader acts as a chairperson rather than advocate. Together the leader and subordinates 6 generate and evaluate alternatives and attempts to reach group consensus on a solution. Seven decision rules that are suggested by Vroom and Yetton to help the manager to decide which leadership style to apply in a given situation: 1. Is there a quality requirement such that one solution is likely tob e more rational than another? 2. Is there sufficient information to make a high – quality decision? 3. Is the problem structured? 4. Is acceptance of the decision by subordinates critical to effective implementation? 5. If you were to make the decision yourself, is it reasonably certain that it would be accepted by subordinates? 6. Do subordinates share the organisational goals to be obtained in solving the problem? 7. Is conflict among subordinates likely in preferred solutions. • House and Dessler: Path – goal theory of leadership suggests that the performance of subordinates is affected by the extent to which managers satisfies their expectation. Subordinates see leadership behaviour as a motivating influence tot he extent that it means: o Satisfaction of their needs depends on effective performance. o The neccessary direction, guidance, training and support, which would otherwise be lacking, are provided. House and Dessler indentifies four main types of leadership behaviour: • Directive leadership: Letting subordinates know exactly what is expected of them and giving specific directions. Subordinates are expected to follow rules and regulations. This type of behaviour is similar to “initiating structure” in the Ohio State Leadership Studies. • Supportive leadership: Having a friendly and approachable manner and displaying concern for the needs and welfare of subordinates. This type of behaviour is similar to “consideration” in the Ohio State Leadership Studies. • Participative leadership: Consulting with subordinates and the evaluation of their opionions and suggestions before the managers makes the decision. • Achievement – oriented leadership: Setting challenging goals for subordinates, seeking improvement in their performance and showing confidence in subordinates’ ability to perform well. Two main situational factors: Leadership behaviour is determined by two main situational factors: • Personal characteristics of subordinates: Determine how they will react tot he manager’s behaviour and the extent to which they see such behaviour as an immediate or potential source of need satisfaction. • Nature of taks: Relates to the extent that it is routine and structured or non – routine and unstructured. 9 • Express confidence in followers and their abillity to carry out the strategy for accomplishing the vision, especially when the task is difficult or dangerous, or when members lack confidence in themselves. • Use dramatic, symbolic actions to emphasise key values and demonstrate leadership behaviour through dramatic, highly visible actions including risking personal loss, self – sacrifice or acting unconventionally. • Lead by example by recognising actions speak louder than words, through exemplary behaviour in day – to – day interactions with subordinates and by demonstrating consistency in daily behaviour. A set of ten critical characteristics central to servant leadership according to Spears: • Good communication skills and the motivation to listen actively. • Understanding and empathy with others. • Ability to heal oneself and others. • Self – awareness and to view situations from a holistic position. • Rely on persuasion as opposed tot he use of power or status. • Able to conceptualise and think beyond day – to – day realities and focus on long – term goals. • Forseeing likely outcomes, learning from the past and identifying consequences of future decisions. • Stewardship of their organisation for the greater good of society. • Commitment to the personal, professional and spiritual growth of people. • Building a strong organisational community. Yukl has listed seven key values and examples of fostering a relationship of trust and cooperation: • Integrity: Open and honest communications, keeps promises and commitments, accepts responsibility for mistakes. • Altruism: Helps others and puts their need before your own, willing to takes risks and make sacrifices to benefit others. • Humility: Treats others with respect, avoids status symbols and privileges, modest about achievements, emphasises contributions of others. • Empathy and healing: Helps other cope with emotional distress, acts a mediatior, encourages reconciliation. • Personal growth: Encourages development of individual confidence and ability, provides learning oppurtunities and mentoring and coaching. 10 • Fairness and justice: Encourages and supports fair treatment, speaks out againt unfair and unjust practices or policies. • Empowerment: Consults with others about decisions that affect them, provides autonomy and discretion, encourages expression of dissenting views. The focus of servant leadership according to Wong: New types of leaders are needed to create new futures, and the challenge for management and leadership education is to: • Develop workers and unleash their creative potential. • Create a positive workplace that will attract and retain knowledge workers. • Reinforce innovations and risk – taking to adapt to an uncertain future. Five types of power and leadership influence: • Reward power: Is based on the subordinate’s perception that the leader has the ability and resources to obtain rewards for those who comply with directives, for example, pay, promotion, praise, recognition, increased responsibilities, allocation and arrangement of work and granting of privileges. • Coercive power: Is based on fear and the subordinate’s perception that the leader has the ability to punish or to bring about undesirable outcomes for those who donot comply with directives, for example: withholding pay rises, promotion or privileges, allocation of undesirable duties or responsibilities, withdrawal of friendship or support and formal reprimands or possibly dismissal. • Legitimate power: Is based on the subordinate’s perception that the leader has a right to exercise influence because of the leader’s role or position in the organisation. Legitimate power is based on authority of managers or supervisor’s within a hierarchical structure of an organisation. • Referent power: Is based on the subordinate’s identification with the leader. The leader exercises influence because of perceived attractiveness, personal characteristics, reputation or what is called “charisma”. Subordinates might still obey a manager who doens’t have the official authority to punish or reward them, because they respect him. • Expert power: Is based on the subordinate’s perception of the leader as someone who is competent and who has some special knowledge or expertise in a given area. Expert power is based on credibility and clear evidence of knowledge or expertise. The leadership relationship: The manner in which the leader influences the behaviour and actions of other people. 11 Four major variables of the leadership relationship according to McGregor are: • The charateristics of the leader. • The attitude, needs and other personal chrateristics of the followers. • The nature of the organisation, such as its purpose, its structure and the tasks to be performed. • The social, economic and political enviroment. Leadership effectiveness: According to Coleman the moest effective leadership styles are: • Authoritative style: Was found to be the most effective style and can motivate and inspire commitment towards the goals of the organisation. • The affiliative style: Has potential to create harmony within teams and can be used in conjunction with the authoritative style. • The democratic style: Has been considered positive and encourages input from staff and helps build consensus through participation. • The coaching style: Can help staff identify their strengths and encourage long – term development goals. Successful leaders tot he following things: • Build a “culture of discipline” and are about getting things done, controlling costs and marshalling resources. • Keep in touch with how people are feeling, they do not waste time worrying if everyone is happy but understand the emotional temperament of the organisation and emotional responses from people. • Know where they are strong but also know their weaknesses and display a fierce humility. • Are motivated by what they build, such as great teams and talented people, rather than what they get. • Have clearse sense of where the organisation is going, but very often this is the result of collective decision – making in a talent team. Variable that affect the effectiviness of leadership are: • Characteristics of the manager: Personality, attitudes, abilities, value -system and personal credibility. • Type of power of the manager: Basis of the leadership relationship. • Characteristics of the followers: Diversity, needs and expectations, attitudes, knowledge, confidence and experience, and motivation and commitment. • Type and nature of the organisation, culture of the organisation and structure. • Nature of the tasks to be achieved and time scales. • Technology: Systems of communication and methods of work organisation. • Informal organisation: The psychological contract. • Nature and influence of the exteranl environment and national culture. 14 Chapter 10 Understanding management The importance of management Management can be regarded as: • Taking place within a structured organizational setting with prescribed roles. • Directed towards the attainment of aims and objectives. • Achieved through the efforts of other people. • Using systems and procedures. The organization setting The people organization relationship The context in which the activities of management take place The manner in which responsibilities and duties of management are exercised The actual process of management and execution of work Measures of organizational performance and effectiveness Organizational environment and culture What is management? Management is a generic term and subject to many interpretations. Significance of cultural influences: Cultural influences are a significant feature of management. For international managers to perform successfully in the global economy they need to understand the effects of different cultures on organizational behavior. Management as art, science, magic and politics: • Managements as art: Successful managers are those born with appropriate intuition, intelligence and personality which they develop through the practice of leadership. • Management as science: Successful managers are those who have learned the appropriate body of knowledge and have developed an ability to apply acquired skills and techniques. • Management as magic: Successful managers are those who recognize that nobody really knows what is going on and who persuade others of their own powers by calling up the appropriate gods and by engaging in the expected rituals. • Management as politics: Successful managers are those who can work out the unwritten laws of life in the organizational jungle and are able to play the game so that they win. Foppen emphasis the importance of management performance as followed: Management is of pivotal importance for modern society. It is for this reason that, no matter what, thinking about management, certainly at university level, is of great relevance to management practice. So apart from the question of whether 15 management’s claim that it is indispensable is really valid or not, the fact that practically everyone believes it is, is what counts. Common activities of management: • Forecasting and planning: Examining the future, deciding what needs to be achieved and developing a plan of action. • Organizing: Providing the material and human resources and building the structure to carry out the activities of the organization. • Commanding: Maintaining activity among personnel, getting the optimum return from all employees in the interests of the whole organization. • Controlling: Verifying that everything occurs in accordance with plans, instructions, established principles and expressed commands. The 14 principles of management: 1. Division of work: The object is to produce more and better work from the same effort, and the advantages of specialization. However, there are limits to division of work, which experience, and a sense of proportion tell us should not be exceeded. 2. Authority and responsibility: Responsibility is the corollary of authority. Wherever authority is exercised, responsibility arise. The application of sanctions is essential to good management and is needed to encourage useful actions and to discourage their opposite. The best safeguard against abuse of authority is the personal integrity of the manager. 3. Discipline: Is essential for the efficient operation of the organization. Discipline, in essence, the outward mark of respect for agreements between the organization and its members. The manager must decide on the most appropriate form of sanction in cases of offences against disciplines. 4. Unity of command: In any action an employee should receive orders from one superior only; if not, authority is undermined, and discipline, order and stability threatened. Dual command is a perpetual source of conflicts. 5. Unity of direction: In order to provide for unity of action, co-ordination and focusing of effort, there should be one head and one plan for any group of activities with the same objective. 6. Subordination of individual interest to general interest: The interest of the organization should dominate individual or group interest. 16 7. Remuneration of personnel: Remuneration should as far as possible satisfy both employee and employer. Methods of payment can influence organizational performance and the method should be fair and should encourage keenness by rewarding well-directed effort, but not lead to overpayment. 8. Centralization: Is always present to some extent in any organization. The degree of centralization is a question of proportion and will vary organizations. 9. Scalar chain: The chain of superiors from the ultimate authority to the lowest ranks. Respect for line authority must be reconciled with activities that require urgent action, and with the need to provide from some measure of initiative at all levels of authority. 10. Order: This includes material order and social order. The object of material order is avoidance of loss. There should be an appointed place for each think, and each thing in its appointed place. Social order involves an appointed place for each employee, and each employee in their appointed place. Social order requires good organization and good selection. 11. Equity: The desire for equity and for equality of treatment are aspirations to be taken into account when dealing with employees throughout all levels of the scalar chain. 12. Stability of tenure of personnel: Generally, prosperous organizations have stable managerial personnel, but changes of personnel are inevitable, and stability of tenure is a question of proportion. 13. Initiative: This represents a source of strength for the organization and should be encouraged and developed. Tact and integrity and required to promote initiative and to retain respect for authority and discipline. 14. Espirt de corps: Should be fostered, as harmony and unity among members of the organization are a great strength in the organization. The principle of unity of command should be observed. It is necessary to avoid the dangers of divide and rule of one’s own team, and the abuse of written communication. Wherever possible, verbal contacts should be used. According to Fayol, the practice of management entails: • Setting and programming objective. • Motivating and aligning effort. • Co-ordinating and controlling activities. • Developing and assigning talent. • Accumulating and applying knowledge. • Amassing (vergaren) and allocating resources. 19 o Spokesperson role: Involves the manager as formal authority in transmitting information to people outside the unit and the public such as suppliers, customers, government departments and the press. • Decisional roles: Involves the making of strategic organizational decisions on the basis of the manger’s status and authority, and access to information: o Entrepreneurial role: Is the manager’s function to initiate and plan controlled change through exploiting opportunities or solving problems and taking action to improve the existing situation. o Disturbance handler role: Involves the manager in reacting to involuntary situations and unpredictable events. When an unexpected disturbance occurs, the managers must take action to correct the situation. o Resource allocator role: Involves the manager in using formal authority to decide where effort will be expended and making choices on the allocation of resources such as money, time, materials and staff. o Negotiator role: Is participation in negotiation activity which other individuals or organizations. Because of the manager’s authority, credibility, access to information and responsibility for resource allocation, negotiation is an important part of the job. According to Mintzberg there are six reasons why organizations need managers: • To ensure the organization serves its basic purposes, the efficient production or goods or services. • To design and maintain the stability of the operations of the organization. • To take charge of strategy-making and adapt the organization in a controlled way to changes in its environment. • To ensure the organization serves the ends of those people who control it. • To serve as the key informational link between the organization and the environment. • As formal authority to operate the organization’s status system. Two common activities of general managers are: • Agenda – setting: Is a constant activity of managers. This is a set of items, or series of agendas, involving aims and objectives, plans, strategies, ideas, decisions to be made and priorities of action in order to bring about desired end results. This requires individual managers responsible for achieving targets to have a continual and changing series of agendas to help bring intentions into reality. • Network – building: Involves the managers interacting with other people and establishing a network of co-operative relations outside the formal structure. The network often includes a large number of people, many in addition to their boss or direct subordinates, and individuals and groups outside the organization. Meetings provide exchanges of information over a wide range of topics in a short period of time. A major feature of 20 network – building is to establish and maintain contacts that can assist in the successful achievement of agenda items. Three main categories of the model of managerial job are: • Demands: Is what anyone in the job has to do. They are not what the manager ought to do, but only what must be done. For example: meeting minimum criteria of performance, work that requires personal involvement, complying with bureaucratic procedures that can not be avoided, meetings that must be attended. • Constraints: Are internal or external factors that limit what the manager can do. For example: resource limitations, legal or trade union constraints, the nature of technology, physical location, organizational constraints, attitudes of other people. • Choices: Are the activities that the manager is free to do, but does not have to do. They are opportunities for one job – holder to undertake different work from another, or to do the work in a different. For example: what work is done within a defined area, to change the area of work, the sharing of work, participation in organizational or public activities. Importance of managerial style: three major problems concerning the organization and managing of the work, and managing people are: • In a modern democratic society, is it realistic even to contemplate the possibility of managing people and that there are people willing to be managed? • Can it be argued that a manager has no moral right to direct, manage or boss any individual? • Does the focus on people management tend to blur the part played by structures, systems, cultures, processes and the rest? The style of management according, based on the polar (polair) assumptions about people and work, the following theories are: • Theory X assumptions: Represents the carrot – and – stick assumptions on which traditional organizations are based: o The average person is lazy and has an inherent dislike of work. o Most people must be coerced, controlled, directed and threatened with punishment if the organization is to achieve its objectives. o The average person avoids responsibility, prefers to be directed, lacks ambition and values security most of all. o Motivation occurs only at the physiological and security levels. • Theory Y assumptions: o Represents the assumptions consistent with current research knowledge. The central principle of Theory Y is the integration of individual and organizational goals. Its assumptions are: o For most people, work is as natural as play or rest. o People will exercise self – direction and self – control in the service of objectives to which they are committed. o Commitment to objectives is a function of rewards associated with their achievement. 21 o Given the right conditions, the average worker can learn to accept and to seek responsibility. o The capacity for creativity in solving organizational problems is distributed widely in the population. o The intellectual potential of the average person is only partially utilized o Motivation occurs at the affiliation, esteem and self – actualization levels as well as at the physiological and security levels. 24 • They champion learning and development for themselves and their teams and create an environment where the giving and receiving of feedback is the norm. • They know and listen to their team and encourage open discussion and constructive challenge. *See page 377, figure 10.9, textbook* 25 Chapter 11 Organization structure and design The purpose and importance of structure: There is a close relationship between the organization’s structure and corporate strategy. Structure is means of improving organizational performance. The purpose of structure may be summarized as to provide for: • Economic and efficient performance of the organization and level of resource utilization. • Monitoring activities of the organization. • Accountability for areas of work undertaken by groups and individual members of the organization. • Coordination of different parts of the organization and different areas of work. • Flexibility in order to response to future demands and developments, and adapting to changing environmental influences. • Socials satisfaction of members working the organization. The human element: The human aspect within an organization is important as employees carry out the work. Structure should be designed to encourage both the willing participation of members of the organization and effective organization performance. Levels of organization: Three broad interrelated levels in the hierarchical structure are: • Technical level: Is concerned with specific operations and discrete tasks, with the actual job or tasks to be done, and with performance of the technical function. • Managerial / organizational level: Is concerned with the coordination and integration of work at the technical level. Decisions at the managerial level relate to the resources necessary for performance of the technical function and to the beneficiaries of the products or services provided. • Community / institutional level: Is concerned with broad objectives and the work of the organization as a whole. Decisions at the community level will be concerned with the selection of operations and the development of the organization in relation to the wider social environment. Example of the community level within organization are the board of directors of joint – stock companies, governing bodies of educational establishments that include external representatives, and trustees of non – profit organizations. The distinction between senior and middle management: • Senior management: Are concerned with setting the strategic direction and objectives for the organization. Also, they are more concerned with results. • Middle management: Are concerned with applying strategies and make things happened. Aswell as how to achieve results. 26 Underlying dimensions of organization structure: Structure framework of activities for the organization Harmonization with goals and objectives. Levels of organization Underlying principles and dimensions of structure • Tasks and elements functions • Division of work and grouping of people • Centralization and decentralization • Hierarchy, span of control and chain of command • Formal organizational relationships • Line and functional organization • Project teams and matrix structure • The human element and behavior of people Structure: means of improving organizational performance Task and element functions: 4 essential basic task functions that the organization must perform: 1. The product or service me be developed. 2. Something of value must be created – the production or manufacture of a product or provision of a service. 3. The product or services must be marketed, and distributed or made available to those who are to use them. 4. Finance is need in order to make available resources for the development, creation and distribution of the production or services provided. Task functions: The basic activities of the organization related to the actual completion of the productive process and directed towards specific and definable ends. Element functions: Other activities of the organization not directed towards specific and definable ends, but are supportive of the task functions and an intrinsic part of the management process are: • Human resources • Planning • Management services • Public relations • Quality control and maintenance. Division of work and grouping of people: Within a formal structure work and the grouping should be divided by reference to some common characteristics and the activities that are involved. Major purpose or function: Activities are divided into groups and functions according to specialization, the use of same set of resources, shared expertise of member of staff. 29 • The matrix structure: Is a combination of: o Departments that provide a stable base for specialized activities and a permanent location for members or staff. o Units that integrate various activities of different functions on a project team, product, program, geographical or system basis. A matrix design might be adopted in the following circumstances: • More than one critical orientation to the operations of the organization. • A need to process simultaneously large amount of information. • The need for sharing of resources. The advantages and difficulties when applying the matrix structures: • Advantages: o Flexibility o Greater security o Control of project information o Opportunities for staff development. • Difficulties: o It sacrifices the unity of command and can cause problems of coordination. o Divided loyalties and role conflict; individuals reporting simultaneously to two managers. Boundaryless organization: The original idea of a boundaryless organization is to eliminate internal barriers; both vertical boundaries between different levels of the management hierarchy and horizontal boundaries between different departments. And external barriers between the company, suppliers and customers. Effects of a deficient (gebrekkig) organization structure: • The consequences of structure deficiencies are: • Low motivated and morale. • Late and inappropriate decisions. • Conflict and lack of coordination. • A generally poor response to new opportunities and external change. • Rising costs. Organization charts: When the structure of an organization is depicted (afgebeeld) in the form of a chart that provides a pictorial representation of the overall shape and structural framework of the organization. They may be used as a basis for the analysis and review of a structures, and for formulating changes. The chart may indicate apparent weaknesses in structure such as: • Too wide a span of control. • Overlapping areas of authority. • Too long a chain of command. • Unclear reporting relationship and / or lines of communication. 30 • Unstaffed functions. Limitations of organization charts: • They only depict a static view of the organization. • They show how the chart looks and what the structure should be. • Charts do not show the comparative authority and responsibility of positions on the same level, lateral contracts and informal relationships. • Neither do charts show the precise relationships between line and staff positions. • Organization charts can become out of date quickly and are often slotting to be amended to reflect changes in the actual structure. Variables influencing organization structure: • The changing nature of the work environment. • The increasing demands for flexibility. • Concerns with contextual factors. Contingency approach: This can be seen as a development of the systems approach; it goes a stage further in relating the environment, and other variables, to specific structures of organization. The contingency approach emphasizes the need for flexibility. The goals of the contingency is to explain how differences in the contextual and structural dimensions are related. Size of organization: With size many of the characteristics of organization structure is explained. Size can be measured in different ways. Global companies and size: The organization of a global company depends on a host of factors including numbers of businesses and countries in which it operates, the type of industry, location of major customers and its own heritage. Technology: Two major studies concerning technology are those by: • Joan Woodward in 1950s: patterns of organization, production technology and business success. • Perrow: main dimensions of technology and organization structures. According the study of Woodward firms were divided into three main groupings of: • United and small – batch production: Production based on firm orders only, with marketing the first activity. • Large – batch production: Product development and production. Followed by marketing activities. • Process production: With the emphasis on how products could be used than on how they could be made. Marketing was the central and critical activity. Patterns of organization and business success: A strong relationship and clear link between organization structures and success within each of the three main groupings of production systems. 31 Perrow: Major dimensions of technology: Two major dimensions of technology are: • The extent to which the work task is predictable or variable: Refers to the number of exceptional or unpredictable cases and the extent to which problems are similar. • The extent to which technology can be analyzed: Refers to the extent to which problems can be solved in recognizes ways or by the use of routine procedures. Technology and structure: The classification of each type of technology relates to a particular organization structure. In the routine type of organization there is minimum discretion at both the technical and supervisory levels, but the power of the middle management level is high, coordination is based on planning and there is likely to be low interdependence between the two groups. Uncertain external environment: Two important studies that focused on the technology, the effect of uncertainty and a changing external environment of the organization, its management are: • Burns and Stalker: Divergent systems of management practice: mechanistic and organic. • Lawrence and Lorsch: The organization of specific departments and the extent of differentiation and integration. Burnes and Stalker: Their study focused on the external environment of their pattern of management and economic performance. Also, they identified two divergent systems of management practice and structure: • The mechanic system: A more rigid structure that is unable to deal adequately with rapid change and is therefore more appropriate for stable environmental conditions. The characteristics of a mechanistic management are similar to those of bureaucracy. • The organic system: Is a more fluid structure appropriate to changing conditions. It appears to be required when new problems and unforeseen circumstances arise constantly and require actions outside defined roles in the hierarchical structure. *See table 11.1 on page 419 of textbook* “Mixed” forms of organizations structure: When a mix of mechanistic and organic structures are applied within an organization. This is called a hybrid structure. Lawrence and Lorsch: Differentiation and integration: Lawrence and Lorsch examined the overall structure and the way in which specific departments were organized to meet different aspects of the firm’s external environment. 34 Chapter 13 Organizational control and power The essence of control: Organization implies control as it processes helps to achieve goals, strives to consensus and creates order amongst employees. Features of organizational behavior are: • A function of the formal organization and hierarchical structure of authority. • Regulating organizational behavior. • A function of interpersonal influence. Individual responses and behavior: Most people are ambivalent towards control. On one side, they dislike control and someone telling them what to do, or criticize their performances. On the other side, people like to hear how well they are performing and that is a way of control aswell. At the same time, many employees prefer control and being told what to do by their managers and obey authority. Instead of working autonomous and being responsible for results. Two things to consider when achieving control over work behavior are: • Only partial control can be achieved as organizations exist through human relationships. Human relationships will never allow complete control from some people over others. • Work behavior is also determined by rules, procedures and system devices. Aswell as negotiating, persuasion and manipulation. Improvement in performance: Control involves managerial activities, planning, organizing work functions, guiding and regulating the activities of the staff. The whole purpose of management control is to improve the performance at both the individual and organization level. After all, features of poor organizational performance can lead to the collapse of a company. Expression of managerial behavior: How (managerial) control is being exercised and expressed within an organization depends upon on: • What would the organization want to achieve? • How should control be exercised? • What is the culture is means of organization control? Elements of organizational control system: • Planning objectives and targets: Formulating and clarifying goals that need to be achieved. Specifying the targets, objectives that need to be achieved. Describing the key activities that need to be carry out and by who. A solid planning is required aswell. 35 • Establishing standards of performance: When setting up a plan, standards of performance and measurements of what to achieved need to be determined aswell. Planning and measurement are requirements of control. • Monitoring actual performance: The means of monitoring actual performance require clear communications channels and feedback. Also, an accurate system that can report relevant information in a timely manner. • Comparing actual achievement against the planned target: Interpreting and evaluating information in order to give details of progression to those who it concerns. But also to reveal deviations and identifying problems. • Rectifying and taking corrective action: In case of failures and deviations when achieving targets and objectives, appropriate corrective action must be undertaken in order to rectify the situation. Forms of control are concerned with: • Observance of legislation, standing orders and policies and procedures. • Day – to – day operational activities that call for more specific standards of performance and speedy corrective action. • Health and safety of all members of the organization or people in contact with the organization. • The structure of the organization and role relationships. • Type of production system and use of technology. • Measurement of inputs, outputs, processes or the behavior of people. • Recruitment and selection, socialization, training and development. • Performance of the organization as a whole or with major parts of it. • Total quality control with all areas of the organization, is a part of quality management programs. Control in the public sector: There is a high level of bureaucracy, statutory control, legislation and ministerial guidance concerning control in the public sector. This is because there is a demand for uniformity of treatment and public accountability for their operations. Technology and control systems: The purpose of technological control systems is to encourage social relationships, interaction between humans. Technology is a human, political and social activity. Control systems may be the underlying variable that links organizational behavior and technology. Information and communications technology: Technology has an affect on control, the way of communication within and organization, and the way information is being transferred to employees. The process of communication is largely linked to computer systems and gives people rapid access to more information. But also to the national and international offices. Due to technology, working from home has become more common nowadays. 36 Concertive control: Concertive control is common amongst members of self – managing teams. Concertive control is not being exerted by manager, but by the value consensus of the team to a system of normative rules. Concertive control is formed by worker based on their own cultural norms and has nothing to do with bureaucratic and hierarchical control. Strategies of control in organizations: Six significant strategies of control in organizations are: • Personal centralized control: This type of control occurs in small, owner – managed organizations of decision – making and initiative around a leadership figure. Control largely consist of personal supervision and inspection. • Bureaucratic control: Occurs in public – sector organizations and many other types of large organization. This form of control is based on the specification of how members should behave and carry out their work. Formal job descriptions and procedures are involved, aswell as standard methods of how one should perform and carry out tasks. Bureaucratic control requires formal systems and organizational behavior. • Output control: Relies upon the ability to identify specific tasks having a measurable output or criterion of overall achievement. The output control is applied when delegating activities, without using bureaucratic control and close personal supervision. • Control through electronic surveillance: The presence and employees of employees, the quality and the speed of the work, is being recorded through electronic systems. • HRM control: HRM procedures can be used to for the personal development of employees and to control their behavior and performance. These procedures are also being used when recruiting new hires. • Cultural control: An informal way of control within an organization and focusses on internal compliance of regulations and procedures. Characteristics of an effective control system: An effective control system should be: • Understandable for everyone who is involved in its operation and are responsible for processing information, carry out task and achieving results. • Draw attention to the critical activities important to the success of the organization. Control must be exerted in key results area and the activities that are crucial to the organization’s success. • Conform with the structure of the organization and be related to decision centers responsible for performance. Specific information should be supplied to managers 39 Social exchange theory: In some organizations some individual members have more power than their co – workers. Social exchanges are influenced by a web of power relationships and are not always equal. For example, employees who work fulltime might have more power than employees who work part-time. Also, in some organizations women and ethnic minorities have less power. Pluralistic approaches to power: The level of power a person has in an organization also depends on his / her personality, experience, characteristics and talents. Personal (informal power is derived from the individual and is in the eye of the beholders who believe that the person has the ability to influence other people or events and to make things happen. Many different groups and individuals have the ability to influence the behavior and actions of other people, and in a number of different ways. Network of social relationships: Certain jobs or work relationships enable people to exercise a level of power in excess of their formal position within the structure of the organization. For example, the personal assistant of the manager might fulfill the role of gatekeeper to the manager. Realities of organizational life: The reality of the organization life are the vagaries (grillen) of social relationships including power, office politics, and also the grapevine and gossip. Motivational need for power and control: Power can be a positive source of motivation for some people. Some people enjoy the exercise of power over other people. But there is a fine line between motivation to achieve personal dominance and the use of social power. Financial and accounting systems of control: When management control are frequently expressed in terms of financial and accounting systems. The reasons for this are: Results are measured and reported in financial terms. Therefore, the financial resources are of a major concern for an organization. Money is quantifiable and a precise unit of measurement. Financial limits are easy to apply as a measure of control and easy to relate to. Accounting systems and human behavior: Management control does not only consist of financial and accounting systems, but of human behavior aswell, such as management style, employee motivation, shared values and the corporate culture. Influencing skills: • These days managers have to get things done through other people whom they can not control. For this, new skills are required such as: • Building networks of trust and influence. • Creating alliances to make things happen. • Dealing with conflict. • Shaping the organization’s agenda to meet your needs. • Dealing with organizational conflict and resistance. • Managing ambiguity and uncertainty. 40 • Finding the right assignments and projects to work on. • Discovering the real rules of survival and success in your firm. According to Yukl, more attention is been given to specific types of behavior used to exercise influence: • Rational persuasion: The use of logical arguments and factual persuasion. • Apprising: Explaining The personal benefits or career advancement. • Inspiration appeals: To values and ideas or attempt to gain commitment. • Consultation: Seeking support and assistance by asking for assistance. • Exchange: Incentives or willingness to reciprocated. • Collaboration: Providing relevant resources and assistance in exchange for proposed change. • Personal appeals: Based on friendship or personal favor. • Ingratiation: Use of praise or flattery. • Legitimating tactics: Establishing legitimacy or verifying authority. • Pressure: use of demands, threats, frequent checking. • Coalition tactics: Seeking the aid or support of others. Balance between order and flexibility: Control can and should be exercised in different ways. Three main forms of control are: • Direct control by orders, direct supervision and rules and regulations. • Control through standardization and specialization. • Control through influencing the way that people think about what should do. Behavioral factors in control systems: Control systems provide an interface between human behavior and the process of management. Factors that can affect the successful implementation of management control systems are: • Attitudes and response of staff. • Motivation. • Groups and the informal organization. • Leadership style and systems of management. • Consultation and participation. • Organization structure. The concept of empowerment: Allowing employees greater freedom, autonomy and self – control over their work, and responsibility for decision – making. Eventhough, the meaning and interpretation of empowerment might be different for everyone. Skill of empowerment and delegation: Empowering other people is a matter of judgement and effective delegation is a social skill, which requires a clear understanding of people’s perception, reliance on other people, confidence and trust and courage. The distinction between empowering and delegation is not always clear. Delegation is the process of entrusting authority and responsibility to others throughout the various levels of the organization. Letting subordinates carry out activities that normally would be done by someone in a senior position. 41 Extreme forms for behavior: • When managers lack the social skill of successful delegation it can result in extreme forms of behavior such as: The total lack of meaning delegation where subordinates might feel that they are being patronized and kept small. When they are being treated as if they are incapable of thinking for themselves and taking responsibility of their work. • When managers delegate too much tasks to subordinates, often without minimum or no guidance and training at all, and expects from them that they full responsibility for all consequences as a result of their actions or decisions. This extreme form of behavior can be considered as an abdication (gebrek aan leiding willen geven) of the manager. The manager – subordinate relationship: Within the formal structure of the organization, delegation creates a special manager – subordinate relationship. It is founded on the concept of: • Authority: Having the authority to take decisions that would otherwise be done by the manager and obliging others to follow instructions of this subordinate. • Responsibility: When the subordinate is obliged to perform certain duties or take certain decisions, and taking full responsibility of this. Which also means getting reprimands in case poor performance or other negative consequences. • Accountability: Is interpreted as meaning ultimate responsibility and can not be delegated. Meaning, managers need to accept full responsibility for the control of their staff. *See figure 13.5 The basis of delegation on page 489 of textbook* Authority commensurate (evenredig, samenvallend met) with responsibility: Delegation embraces both authority and responsibility, it goes together. Responsibility should be supported by authority and power. The manager is fully accountable for the failures and low performance of those who he/she delegated to. The manager must make sure the delegated task are being performed properly. Therefore, managers should accept the blame and reprimands for possible failures of his/her subordinates. Reasons for lack of delegation are: Delegation is influenced by the manager’s perception of subordinate staff, aswell as the perception of the subordinate’s have of the manager. Failure to delegate often results from the manager’s fear: • When the manager is fears the subordinate is incapable of doing a good job, therefore the manager is afraid getting the blame of failures of others. • When the manager is afraid that subordinate will do a better job than him/herself and will look bad towards others. • The manager should bear in mind that his/her task is to get work done through the efforts of others. So when a subordinate does a particularly good job, this should be beneficial for the manager. 44 Chapter 15 Organizational culture and change Adapting to change: Adapting to changes involves applications of organizational behavior and recognition of the social process of the organization. This is necessary in order to compete in fast - paced, global environment with new technologies. Organization culture: Organization culture has different meanings. A system of shared meaning held by members that distinguishes the organization from other organizations and they know how things are done “here”. Also note: The culture of an organization is often linked to the personality of an individual. Relationship between culture and change: When changes have to be made it is most likely that the organization culture needs to be changed aswell. So when change occur, this will have an affect on the culture. Simultaneously, the culture will affect or constrain the change. Levels of culture: The three levels of culture are: • Level 1: Artefacts: The constructed physical and social environment, which include physical space and layout. Furthermore, the technological output, the written and spoken language and the overt behavior of group members. • Level 2: Espoused beliefs and values: Cultural learning, beliefs and values. They way problems are being solved and new tasks are being learned. • Levels 3: Basic underlying assumptions: Basic assumptions are unconsciously held learned responses and guide behavior. But also determine how group members perceive, feel and think about things. Types of organizational culture: • Power culture: This type of culture depends on the central power with influence from the central figure throughout of the organization. The power culture is most common in small entrepreneurial organization and is based on trust, empathy and personal communications. Control is being exercised by the selection of key individuals. There aren’t many rules and there is little bureaucracy. • Role culture: Is a bureaucratic organization and is more about roles and job descriptions, instead of the individuals itself. The work and interaction between the employees is controlled by procedures and rules, and coordinated by senior managers. • Task culture: Is job – or project oriented and wherein the influence is based mainly on expert power. For example, a matrix organization. 45 • Person culture: An organization where the individuals is the central focus and where a group of individuals decided to work together as this in their best interest. The individuals have almost complete autonomy and any influence over them is likely to be on the basis of personal power. Corporate cultures are categorized according to two determining factors in the market place: • The degree of risk associated with the organization’s activities. • The speed at which organization’s and their employees receive feedback on the success of decisions or strategies. Four generic types of culture: • Tough – guy / macho culture: A fast – paced organization where high risks are taken and internal competition and conflicts are common. Financial stakes are high there is an intense pressure. This can cause a burnout amongst employee and a high turnover is common. This makes it difficult to create a strong cohesive culture. Also, employees receive quick feedback on their actions. This type of culture is common in police departments. • Work – hard / play -hard culture: A dynamic organization where teambuilding, having fun and taking actions are being combined. However, the central focus lays on the customer and its needs. Nonetheless, employees are being motivated and encouraged via promotions and conventions. This type of culture is common in sales organizations. • Bet – your – company culture: The company is mainly focused on investing in the future, moves slowly and is concerned with large – stake decisions. Employees receive slow feedback and might get to know years later if their decisions have been successful. This type of culture is common in investment banks and oil companies. • Process culture: An organization where there is much bureaucracy and employees are being judged on how they do things, instead of what they do. Employees receive little feedback on their effectiveness. There is a “cover your back” – mentality amongst employees. Criticisms of cultural typologies: Some writer are critical against cultural typologies and suggest that organization’s have a single overriding cultural environment representative of management ideology and all stakeholder. Influences on the development of culture: The culture and structure of an organization keep developing as time goes by, as a response to a complex set of factors. 46 Seven key influences that play an important role in the development of any corporate culture: • History: The overall history of the company’s and its culture. • Primary function and technology: The technical aspects such as the products / services that are being provided, the customers they company has, the company’s reputation / image. • Strategy: The strategy the company uses to gain profit. • Size: The size and the number of employees of the company, but also how fast it grows. The larger the company, the more formalized it is with structures, rules and procedures. • Location: The geographical location of the company and the physical characteristics. These aspects can have an affect on the culture of the company, the type of customers they attract and the staff that is being hired. • Management and leadership: When top executives have major influence on the nature of the corporate culture. • The environment: They way how a company responds to external environmental changes. For example, if a company operates in a fast – paced and dynamic environment, it should be adapt quickly respond accordingly to challenges, problems. The culture web consists of: • Routine behaviors: The way how employees behave and interact with each other in and outside the organization. But also how they act towards the organization and how things are done or should be done. • Rituals: Formal organizational and informal processes. The activities and special events where the organization emphasis what is important. • Stories: The stories that are being told by the employees about successes, failures, villains (schurken) and how they talk about the organization in general. • Symbols: The logo’s, symbols, offices, cars, titles, use of language and terminology that is used by the organization and how they represent themselves. • Power structures: The power and influence of individuals or groups within an organization. 49 Organizational climate: The organizational climate can be defined as “how it feels to work around here”. Like culture, the organizational climate has an affect on the attitude and behavior of employees. The organizational climate is related to the prevailing atmosphere surrounding the organization, to the level of moral and to the strength of feelings of belonging, care and goodwill amongst employees. The climate and culture of an organization are linked to each other: Culture describes what the organization is about, whereas climate is about the employee’s feelings and beliefs towards the organization. Characteristics of a healthy organizational climate: A healthy organizational climate entails the relationships between employees in an organization, which are determined by interaction regarding goals, objectives, formal structure, the process of management, styles of leadership and the behavior of people. The climate of an organization has a significant impact on the quality and quantity of the works that gets done and on the well – being of employees, aswell as the performance of the organization. *See figure 15.5 on page 551 of text book* Six dimensions of climate: A healthy organizational climate increases employee motivation. According to the research of Atkinson and Frechette of Forum corporation there is a correlation between the organizational climate and the financial results. This research identifies six dimensions that influence the work environment and employee motivation: • Clarity: People’s degree of understanding of the organization’s goals and policies, as well as the requirement of their job. • Commitment: The expression of continuing dedication to a common purpose and to achieving goals. • Standards: The emphasis management place on high – performance standards and the amount of pressure it exerts on teams to improve performance. • Responsibility: The degree to which people feel personally responsible for their work. • Recognition: The feeling that people are recognized and rewarded for doing good work, and that they receive accurate performance feedback. • Teamwork: The feeling of belonging to an organization characterized by cohesion, mutual support, trust and pride. 50 Organizational change: Change is an inevitable and constant feature, and an important part of both the social and organizational life. Change has a pervasive nature and is interrelated with change at other levels. There are two types of organizational change: • Organizational change: This is initiated by management, regarding a certain department or the whole organization: o Internal change: Concerning procedures, regulations, the company’s policy. o External change: that has arisen from external factors and circumstances. • Personal transformational change: When (external) circumstances remained the same, but due to personal, emotional or spiritual circumstances of an individual changes have occurred. This transformation / change of an individual can have an affect on his/her behavior, work attitude, the work itself, actions and relationships with colleagues. Forces of changes: Factors that create an increasingly volatile environment include: • Uncertain economic conditions. • Globalization and fierce world competition. • The level of government intervention. • EU influences and social legislation. • Political interests. • Scarcity of natural resources. • Rapid developments in new technologies and the information age. In order to ensure the survival of the organization and future success it must be readily adaptable to the external demands that exist. The organization must be responsive to change. Other major forces of change include: • Increased demands for quality and high levels of customer service and satisfaction. • Greater flexibility in the structure of work organizations and patterns of management. • The changing nature and composition of the workforce. • Social and cultural influences as diversity, equality and inclusion. • Conflict from within the organization. Economic change in the EU: Due to the changing environment and the fast – paces culture of the global market, the EU is faced with numerous challenges such as remaining competitive. (Economic) changes have become permanent and companies should adapt quickly. Planned organizational change: (Internal) changes can originate from the organization itself. These internal changes can arise from depreciations of tangible assets, a change in personnel / HRM affairs and the quality of work. These changes can be solved by regular maintenance of tangible assets, updating the skills and knowledge of employees and planning the retirement of senior 51 employees in an effective manner. Planned change represents an intentional attempt to improve, in some important way, the operational effectiveness of the organization. The basic underlying objectives can be seen in general terms as: • Modifying the behavioral patterns of members of the organization. • Improving the ability of the organization to cope with change in its environment. Behavior modification: A program of planned change and improved performance according to Lewin involves the management of a three – phase process of behavior modification: • Unfreezing: Reducing those forces that maintain behavior in its present form, recognition of the need for change and improvement to occur. • Movement: Development of new attitudes or behavior and the implementation of the change. • Refreezing: Stabilizing change at the new level and reinforcement through supporting mechanisms, for example policies, structure and norms. Transformational change: This involves a fundamental shift in the culture, conduct of business and working practices of the organization. A transformational change is often performed over a period of time. The challenge of e – business: As a result of the e – business environment people can work from any location at any time. Managers should learn how to cope with this and all the challenges that come along with this flexibility, such as: • Ensuring regular meetings take place. • Creating structure. • Flexible working call for flexible managers. Continuous organizational change and burnout: Continuous organizational changes can lead to organizational burnout. Organizational causes of burnout are: • Excessive workload. • Lack of autonomy. • Lack of authority. • Insufficient reward. • Disparity (ongelijkheid) between personal and organizational values. Resistance to change: Resistance towards changes can occur at an individual and organizational level. This resistance is a cause of many fears’ employees might have. Another cause is the lack of information concerning (major) changes and the recognition of the employees needs and expectations. Or when employees are reluctant towards changes and challenges. 54 When introducing changes and creating a positive attitude amongst employees, aswell as involving them personally, management should: • Inform the staff about proposals. • Create an environment of trust, openness, shared commitment, involve the staff in the decision – making and action that might affect them. • Set up team management and create a sense of shared involvement. Encourage participating and supportive relationships between managers and subordinates. • As part of the pre – planning for new technology set up a “human resource management action program”, which engages with recruitment / selection of new staff, (re)training of staff and developing new skills. Prevent wastage of staff and reduce redundancies. Also, arrange more flexibility, shorter work weeks and redeployment of staff. Getting people to accept change: The process of implementing changes if often derailed due to the resistance of employees and according to Anna Riches managers overlook the following factors: • They underestimate the strength of current patterns that employees are comfortable and familiar with. • They underestimate what will be required to change those patterns and deal with the automatic responses that occur when employees interpret changes as threats. The amygdala and the Almond Effect according to Anna Riches: • The amygdala: A almond – shaped piece of the brain that triggers the “fight” or “flight” reaction. The brain has two amygdala and they play a fundamental role in ensuring your survival. • The Almond Effect: When the amygdala gives a “false alarm” and when you act without thinking, and get it wrong. It’s acting in the heat of the moment and regret it afterwards. Mechanisms of change: People do not change behaviors easily, especially when it concerns work situations. When implementing changes people should change their work behavior. And when managers have to deal with questions from their employees concerning the changes they should remember: • Humans are hard – wired for survival above all else. • Our default thinking is habitual and self – perpetuating. • Everyone is the product of their own experiences with different motivations and unique memories. • Change can be frustratingly slow because it is hard brain work to rewire – even if it is logical and in the best interests. Responsibilities of top management: Top management have a responsibility for the underlying philosophy and attitudes of the organization, for creating and sustaining a healthy climate and for establishing appropriate and supportive organizational processes. And taking positive actions when implementing changes. Aswell as adopting a transformational style of leadership. 55 Leading IT change: Changes are involved with risks and five key challenges in obtaining best value from IT – enabled change are: • Creating transformational value instead only implementing IT projects. • Building capability for ongoing changes. Being able to predict future businesses needs and how IT can help shape new business models and deliver the desired benefits. • Creating a climate of open communication. • Managing confidence and trust, understanding the impact of external changes. • Building personal capability, learning and confidence. Change leaders: Change leaders are the ones that survive rapid, structural changes as they consider changes as opportunities. When looking for the right changes and making them effective, aswell as in and outside the organization, the following measure are required: • Policies to make the future. • Systematic methods to look for and to anticipate change. • The right way to introduce change, both within and outside the organization. • Policies to balance change and continuity. Culture and change: Many leaders use the (corporate) culture as an excuse and diversion (afleidingsmanoeuvre) when implementing changes have failed. A reason for this is because many cultures are too enshrined (verankerd) in the organization and not easy to change. The best way to deal with this is to stop blaming the (corporate) culture and to just work with it and in, until it evolves into the right direction. 56 Chapter 16 Organizational performance and development The crucial role of managers: Management is responsible for to the success and performance of the organization. The crucial role of the manager is the most important factor in the success of innovation initiatives. Managers should coordinate, direct and guide their employees and all the required activities in order to achieve the organization’s goals. Managers need to: • Provide focus for their teams. • Generate the energy to make change happen. • Be good at coping with ambiguity and uncertainty. • Create a culture where people feel safe to experiment and be willing to give agenda time to innovation. Management practices and productivity: Productivity is linked closely to the adoption and utilization of new management practices. Also, the productivity and performance are merely influenced by what happens inside the organization rather than the economic and regulatory environment in which they operate. Managers need to be alert to this and adapt good practices to their own environment. Signature process: Having a competitive advantage that is difficult to copy for rivals. Therefore, managers need to be aware of the strengths and weaknesses of their own organization and improve their competitiveness. Attributes and qualities a manager should have are: • Technical competence: This relates to the specific knowledge , methods and skills to discrete tasks. However, the technical competences are more required at a supervisory level and for training purposes and to guide staff, and fore daily operations. • Social and human skills: This refers to the interpersonal relationship with staff and concerns working with and through other people. But has also to do with the ability of estimating people. Furthermore, these skills are about building effective teamwork and achieving goals, and taking leadership. It also involves dealing with particular situations at work and being flexible. • Conceptual ability: Involves decision – makings skills and the ability to view the complexities of the operations of the organization as a whole, including environmental influences. The importance of management skills: Good management is a prerequisite (voorwaarde) to improving businesses performance. Management skills have an impact on the competitiveness and the performance of the company. 59 Managerial effectiveness is distinguished in: • Apparent effectiveness: The extent to which the behavior of the manager gives the appearance of effectiveness. For example, giving prompt answers, tidiness, making quick decisions and good public relations. • Personal effectiveness: The extent to which the manager achieves personal objectives rather than the objectives of the organization. For example, power and prestige. The hallmarks (waarmerken) of a good manager include: • The capacity to let go and to give power and freedom to others and allow others to make mistakes. • Giving credit to others and downplaying your own achievements, own your failures and share your successes. • Exercising self – control and the ability to regulate your own emotions and instincts. Be more attentive to your own shortcomings. Management of time: Organizing work and achieving goals in timely and effective manner. Time management is an important part of managing. Effective time management can help one to get more control over his/her activities, increase the efficiency, improve your work / life balance and become more proactive when dealing problems or certain issues. Efficient time management should also reduce work pressure and other will perceive the managers as well – organized and calm. Effectiveness and activity: Many managers make the mistake to be too busy and only have attention for the activities that should be done. Instead of giving attention to how activities should be performed, what is achieved and what the end results are. Manager’s checklist: A checklist that for measuring the timemanagement and effectiveness of management: • Does the manager gives adequate attention to current activities, reviews to the past, plans for the future and is thinking enough about the future? • Does the manager divides time correctly between different aspects of the job? Is the division equal? • Have implemented changes resulted in effectiveness? • Should the work that is being done by the manager be delegated? • Who are the people the manager should interact with? Is he/she spending enough time with those people? • Is the work of the manager organized according to his/her priorities? Is he/she capable of making the correct priorities? 60 • Is the manager capable enough to complete tasks within a timely – effective manner without interruptions? If not, are these interruptions important enough to pause the work? When performing these activities a manager should answer the following questions: • Should it be done at all? • If so, when should it be done? • Should it be delegated? The democratic enterprise: Organizations that are inspiring and meaningful, with the possibility for the individuals and the organization to create a win – win relationship and both benefitting, but not at the expense of the others. *See figure 16.5 on page 582 of book* The learning organization: Rapid learning is an essential part of the organization’s performance and effectiveness. Developing and improving skills is mandatory in order to compete within the rapid technology and globalization. Characteristics of the learning organization: • Systems thinking: The recognition that things are interconnected, and organizations are complex systems. • Personal mastery: The competences and skills associated with management including spiritual growth. • Mental models: the driving and fundamental values and principles of the organization. • Shared vision: The importance of co – operation and a shared vision by team members. • Team learning: The two mutually complementary practices of dialogue and discussion, first separating them and then combining them. Four characteristics of the learning organization: • It encourages people at all levels of the organization to learn regularly and rigorously from their work. • It has systems for capturing and learning information and moving it where it is needed. • It values its learning. • It is able to transform itself continuously. Key attributes of the learning organization are: • Learning organization should understand that teams are the fundamental learning unit, not individuals. • Learning organizations develop a shared vision through which a singular purpose is established, and learning is based on this purpose. • Learning organizations place learning in the mainstream of their operations. Learning, quality and customers are all so important that they are everyone’s job. • A learning organization has a culture that embraces questioning and change. 61 • Learning takes place in anticipation of change rather than just responding tactically to problems. • In a learning organization technology serves the workforce and vice versa. • Learning is intentional and focused on the strategy of the organization, not reactive. • Learning organizations structure their processes and systems, so that learning and teaching are included in the daily work role; consequently, learning is pervasive, and change crated from it is permanent. Concerns about implementation: The effect of differential power diminishes (vermindert) the potential for individual and collective learning. Things to be concerned about when implementing learning material are the effectiveness of (existing) policies within the learning organization. Total quality management TQM: How the staff is being treated within the organization and how everyone is responsible for delivering quality to the final consumer. A successful organization should be constantly seeking for opportunities to improve the quality of its products and / or services. Furthermore, the quality of the organization should be linked to the required level of productivity. Implementation of TQM: In order to successfully implement TQM, attention must be given to effective education and training, empowerment and the motivation to take ownership of quality. Aswell as systems of communications at all levels of the organization. Implementation of TMQ is involving all operations of the organization and the active participation of topmanagement. This requires as supportive organizational culture and a program of planned management change. Kaizen: “Kaizen” is Japanese for “improvement”. The term “kaizen” is introduced by several Japanese organizations and focusses on the people aspect of improvement and the acceptance of changes. The “kaizen” approach gives responsibility to employees within certain fixed boundaries and exist of: • Analyses every part of a process down to the smallest detail. • Sees how every part of the process can be improved. • Looks at how employees’ actions, equipment and materials can be improved. • Looks at ways of saving time and reducing waste. The balanced scorecard: Is a scorecard that combines a range of qualitative and quantitative indicators of performance related to organizational effectiveness and the expectations of stakeholders, when choosing a strategy. A balance scorecard is about aligning actions to strategy and emphasizing what is important. Examples of indicators are: • Customer acquisition. • Retention. • Profitability. 64 • Society results: What the organization is achieving in relation to local, national and international society, as appropriate. • Business results: What the organization is achieving in relation to its planned performance. Management development: Due to the increasing business competitiveness, rapid changes and technological innovations it become important that management develops quickly. Therefore, managers need to possess technical, social and conceptual knowledge and skills, gained by sufficient education and experience. Research has proven that organizations with a highly qualified management workforce and sufficient program of management develop better and offer good product market strategies. Succession planning: Should be related to the overall corporate strategy. Also, succession planning should ensure recruit qualified personnel for managerial positions that will meet the (future) needs of the organization, in case of replacement of staff due: death, promotion, transfer and resignation. Succession planning primarily focuses on key positions within senior management. It’s about replacing leaders. Planned career progression: Planned career progression should provide managers: • Training and experience to equip them to assume a level of responsibility that is compatible with their ability. • Practical guidance, encouragement and support so that they may realize their potential, satisfy their career ambition and wish to remain with the organization. Continuing professional development (CPD): Life long learning should be accessible for all employees, subordinates and managers, in the company. Self – development: Self – development is part of the managerial and professional performance. But self – development has to be self – initiated and continued during one’s career. Therefore, the work environment should be encouraging and motivate employees. The future of management and leadership has to respond to the following challenge in order deliver success: • The UK lags behind many competitors on key economic indicators. • Younger generations will drive new ways of working. • Managers will need to be adequately trained. • Technology demands better people skills. • Globalization will drive diversity and more cross – cultural working. • Long – term sustainability. 65 Leadership today includes: • Concerns about management effectiveness: Good management is crucial to driving growth and productivity, but many managers of these days are lacking this ability. • Ethics: Four -fifths of workers do not think their managers sets a good moral example and les than a fifth are aware of their organization’s values. • Training is too little and too late: UK-managers are underqualified, and many are left without training and development they deserve to succeed in their job. Top ten characteristics needed by managers are: • Clear sense of purpose. • Strong values and personal integrity. • Commitment to developing others through coaching and mentoring. • Champion of diversity. • Ability to engage and communicate across all levels. • Self – awareness and taking time to reflect. • Collaboration networked and non – hierarchical. • Agile and innovative, technologically curious and savvy (gezond verstand). • Personal resilience and grit. • Excellent trackrecord of delivery. Organizational capabilities: • Superior organizational design. • Rigorous business process and controls. • Roles and collaboration mechanisms. • Processes and tools. • Leadership. • People and engagement. • Culture and change. *See figure 16.10 on page 597 of textbook for a detailed description of each topic* The future of workplace: Further issues concerning the future workplace are: • How to get people to collaborate in real time across different parts of the world. • The design of office space to be more open to encourage greater creativity. • A danger that office design driven by technological development ignores the human cultural dimensions of work. • With the move towards more flexible working and remote working, how will businesses that are built on the accumulation of the experience and skills of their people respond if those people are never together? 66 • The focus on interactive technology and bringing people together using technology. • What is the speed of change of human behavior to facilitate culture, organization and a sense of belonging in a new set of environments? How to manage the transition of behavior when everyone is stressed and insecure. • The idea of a clean desk, the layering of technology, increased office size because of handling email, the lack of reading. • The dramatic change in work, which is now much more complicated. People working in different locations across different time zones but, at present, an extremely low understanding of virtual teaming. Successful organizations and people: The overall effectiveness of an organizations is affected by the structural design and the individuals that fill the positions within that structure. The operation of the organization and actual working arrangements is affected by the style of management, the members itself and the informal organization. The relationship between the organization and its employees is reciprocal (wederzijds). The success of an organizations is not only build on practical elements, but the human element aswell. And in order to become successful and gain profit, an organization needs to add value to their employees. People, diversity and organizational performance: Due to the globalization it is of great importance to understand diverse countries and their workplace. Aswell as respecting individual differences and diversity and simultaneously act in a positive manner regarding equality and inclusion. Diversity should be embraced as organizations will be dealing with customer from all over the world.