MGMT1001 SKIMMED Notes for exams

Managing Organisations and People – MGMT1001 WEEK 1: T1

PART 1 – INTRODUCTION CHAPTER 1 – INTRODUCTION TO ORGANISATIONS AND MANAGEMENT WHAT IS AN ORGANISATION? Organisation happens when people work together to achieve a desired goal. It has a distinct purpose, includes people and has deliberate structure. Example: schools, businesses, and government departments Characteristics of organisations: 

Size (small, medium, large)



Industry (consumer goods, finance, service, telecommunication…)



Ownership type (sole trader, company (private/public), membership, Not For Profit)



Owner domicile (local, national, international)



Location



Physical environment (open plan, personal office)



Remuneration and benefits (yearly bonus, share options, employee discount, other benefits)

An organisation… Has:

Is:



Purpose, objectives, goals



Structure, rules and boundaries



People



Action designed to achieve the goals

Exists: 

Future oriented



Part of an open system



Independently of the people within them – they „go on‟ while members change

The context of organisations and management today 

Technological change – new products, new ways of doing things, outsourcing and off shoring



International division of labour



Changing conception of time and space



Changing demographics

Societal, economic, global and technological changes have created an environment in which successful organisations must embrace new ways of getting their work done. Examples: more sustainable organisational practices, global economic, social and environmental challenges, and the changing employee expectations. Common characteristics of organisations 1. Distinct purpose – this refers to the set of goals the organisation hopes to accomplish 2. People – working together helps achieve business goals 3. Deliberate structure – the simple network that allows members to do their work. The structure may be open and flexible The nature of an organisation is changing; it is no longer a structure with clear identifiable division, departments and work units. Today‟s organisations have a flatter, networked structure that relies on flexible arrangements, employee work teams, open communication systems (2-ways) and supplier alliances. The changing organisations Traditional organisation

New contemporary organisation



Stable



Dynamic



Inflexible



Flexible



Job focused



Skills focused



Work is defined by job positions

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Work is defined in terms of tasks to be done



Individual oriented



Team oriented



Permanent jobs



Temporary jobs



Command oriented



Involvement oriented



Managers always make decisions



Employees participate in decision making



Rule oriented



Customer oriented



Relatively homogenous workplace



Diverse workforce



Hierarchical relationships



Flexible working hours

1

Managing Organisations and People – MGMT1001 WHY ARE MANAGERS IMPORTANT? 1. Organisations need their managerial skills and abilities more than ever in uncertain, complex and chaotic times. As organisations deal with today‟s challenges – the worldwide economic climate, the risks of global warming, changing technology, and ever-increasing globalisation – managers play an important role in identifying critical issues and crafting responses 2. They are critical to getting things done. Managers are to ensure that all the employees are doing their jobs, so that the organisation can achieve its purpose 3. The Gallup Organisation has found that the most important variable in employee productivity and loyalty is the quality of the relationship between employees and their direct supervisors WHO ARE MANAGERS? Manager – someone who coordinates and oversees the work of other people so that organisational goals can be accomplished. A manager‟s job is about helping others do their work and achieve goals. It is easier to classify managers in traditionally structured organisations, i.e. those with deliberate work arrangement or structures shaped like a pyramid, reflecting the fact that the number of employees is greater at the bottom than at the top. First-line managers – the lowest level of management and manage the work of non-managerial employees who are directly involved with producing the organisation‟s products or servicing the organisation‟s customers. They have titles like supervisors, shift managers, office manager, team leaders and forepersons. Middle managers – include all levels of management between the first-line level and the top level of the organisation. They manage the work of firstline managers and may have titles like regional manager, department head, project leader, store manager, dean and division manager. Top managers – are responsible for making organisation-wide decisions and establishing the goals and plans that affect the entire organisation. They typically have titles such as managing director, Chief Executive Officer (CEO), Chief Operating Officer and chairman of the board. They are involved in creating and implementing broad and comprehensive changes that affect the entire organisation.

WEEK 2: T2

However, not all organisations use a traditional structured pyramid. Some organisations are more flexible and loosely configured, with work being done by ever-changing teams of employees who move from one project to another. WHAT IS MANAGEMENT? Management – is the process of coordinating and overseeing the work activities of others so that their activities are completed efficiently and effectively Managers cannot do what they want anytime, anywhere or in any way; management involves ensuring work activities are completed efficiently and effectively by the people responsible for doing them. Management is concerned with being efficient and effective when completing activities so that organisational goals are attained. Efficiency – doing things right, or getting the most output from the least amount of inputs. This is concerned with the means of getting things done Effectiveness – doing the right tings, or completing activities so that organisational goals are attained. This is concerned with the ends (result), or the attainment of organisational goals Management must be concerned about getting activities completed and meeting organisational goals (effectiveness), and doing them as efficiently as possible. The aim of management

2

Managing Organisations and People – MGMT1001 TIMELINE OF MANAGEMENT THEORY

Scientific management 

Fredrick W. Taylor (1856-1915) is best known for defining the techniques of scientific management



The systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency.

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Increasing specialisation and the division of labour – the production process would become more efficient

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Managers should scientifically select and train, teach and develop workers (the right person for the right job)

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Clear rules and responsibilities between management and employees

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Is the invention of scientific management a good thing? o

Good for consumers and CEO

o

Bad for employees



Taylor believed that if the amount of time and effort that each worker expended to produce a unit of output (a finished good or service) could be reduced by increasing specialization and the division of labour, then the production process would become more efficient.



4 principles of „Scientific management‟:



o

Develop a science for each element of the job, which replaces the old „rule of thumb‟ method

o

Managers should scientifically select and then train, teach and develop workers

o

Managers should actively cooperate with the workers to ensure all work is being done in accordance with the principles of the science developed

o

An almost equal division of the work and the responsibility should be between the management and the workers

The Scientific-Technical Revolution and it‟s effects on organisations and management o

The ideas and methods of Scientific Management were what the Americans‟ manufacturing industries needed in that era 

o

o

To extend the transformation of craft work (human as the agent) to mechanisation and transformation

Rise of factory system of production 

Growth in number of employees



Increasing use of technology in production



Rise of „corporations‟ meaning owners did not necessarily work in the organisation (e.g. the typical share-holder)

Key features/ developments 

Specialisation of labour and the „production line‟



Systematic study of work tasks to create rules or „one best way‟ of performing each task



Focus on both job design and organisational structures and administration 3

Managing Organisations and People – MGMT1001 o

Taylor (unknown to himself) had laid the groundwork for automation and off shoring 

He analysed work processes into distinct, unambiguous pieces => which is exactly what computers and unskilled people would follow and execute, based on instructions designed by others.



Under Scientific Management, workers had very little opportunity for further thinking, experimenting or suggestion making.



One of the big problems with the introduction of all of these „scientific methods‟ was that it reduced work/ tasks to menial or boring work

Administrative management: 



Characteristics: o

Spealisation of labour

o

Formal rules and procedures

o

Well-defined hierarchy

o

Career advancement based on merit

Principle: o

Fayol developed a list of 14 principles that he believed were essential to increasing efficiency in the management process.

o

Fayol is also well-known for articulating the 5 (now 4) managerial functions – what managers must do to create a high performing organisation. 

Planning – choosing appropriate goals for the organisation



Organising – designing processes and systems to achieve those goals

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Command – selecting the right employees for the job, evaluating work performance, motivating individual employees etc



Co-ordinating – putting together relationships/ work teams to ensure that production runs smoothly



Controlling – measuring and monitoring to evaluate how the system is working

Behavioural Management: 

Developed in response to Scientific approaches to management



Focus on motivational and behaviour as a mechanism to improve organisational performance

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Hawthorne Studies of the 1920s

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Maslow‟s Hierarchy of Needs

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McGregor‟s Theory X and Theory Y

4

Managing Organisations and People – MGMT1001 WHAT DO MANAGERS DO? MANAGEMENT FUNCTIONS Planning

Organising

Leading

Controlling

Leads to…

Defining goals, establishing strategy, & developing plans to coordinate activities

Determining what needs to be done, how it will be done, and who is to do it

Motivating, leading and any other actions involved in dealing with people

Monitoring activities to ensure that they are accomplished as planned

Achieving the organisation‟s stated purposes

MANAGEMENT ROLES Management roles – specific categories of managerial behaviour expected of and exhibited by a manager 

In the 1970s-80s, „ideal‟ managerial roles were challenged by researcher who actually observed managers in their day-to-day life, and found that managers have a very different job than these „ideals‟



One of the most famous studies was done by Henry Mintzberg who spent many months observing managers in action, and has other managers keep a detailed record of their actions each day. He found that managers spend much more time doing, than thinking



Mintzberg‟s studies allowed him to perform 10 different but highly interrelated management roles (specific categories of managerial behaviour)

Mintzberg’s managerial roles: INTERPERSONAL ROLES 

Interpersonal roles – managerial roles that involve people and other duties that are ceremonial and symbolic in nature o

Figurehead: symbolic head; obliged to perform a number of routine duties of a legal or social nature

o

Leader: responsible for the motivation of subordinates; responsible for staffing, training and associated duties

o

Liaison: maintains self-developed network of outside contracts and informers who provide favours and information

INFORMATIONAL ROLES 

Informational roles – managerial roles that involve receiving, collecting and disseminating information o

Monitor: seeks and receives wide variety of internal and external information to develop thorough understanding of organisation and environment

o

Disseminator: transmits information received from outsiders or from subordinates to members of the organisation

o

Spokesperson: transmits information to outsiders on organisation‟s plans, policies, actions, results, etc

DECISIONAL ROLES 

Managerial roles that revolve around making decisions o

Entrepreneur: searches organisation and its environment for opportunities and initiates „improvement projects‟

o

Disturbance handler: responsible for the allocation of organisational resources of all kinds – making or approving all significant organisational decisions

o

Negotiator: responsible for representing the organisation at major negotiations

AN EVALUATION Mintzberg concluded that their actual work activities involved interacting with other, with the organisation and with the context outside the organisation. He also proposed that as managers perform these roles, their activities include reflection (thoughtful thinking) and action (practical doing) MANAGEMENT SKILLS Research by Robert L. Katz found that managers need 3 essential skills or competencies: technical, human and conceptual. He also found that the relative importance of these skills varied according to the manager‟s level within the organisation. 5

Managing Organisations and People – MGMT1001 TECHNICAL SKILLS Technical skills – knowledge of and proficiency in a certain specialised field These skills tend to be more importance for lower-level managers because they typically are managing employees who are using tools and techniques to produce the organisation‟s products or service the organisation‟s customers. Because of the importance of these skills at lower organisational levels, employees with excellent technical skills often get promoted to first-line manager on the basis of these skills. HUMAN SKILLS Human skills – the ability to work well with other people individually and in a group These skills are important for managers at all levels. Managers need to be aware of their own attitudes, assumptions and beliefs, as well as sensitive to their subordinates‟ perceptions, needs and motivations. Because all managers deal directly with people, human skills are crucial. Katz said that human skills remain just as important at the top levels of management as they do at the lower levels. Managers with good human or interpersonal skills are able to get the best out of people. They know how to communicate, motivate, lead, and inspire enthusiasm and trust CONCEPTUAL SKILLS Conceptual skills – the ability to think and to conceptualise about abstract and complex situations Managers must have the ability to conceptualise and to think about abstract situations. They must be able to see the organisation as a whole and understand the relationships between various subunits, and to visualise how the organisation fits into its broader environment. These abilities are essential to effective decision making, and all managers are involved in making decisions. Katz proposed that these skills become more important in top management positions. The reason for this is that upper-level managers often deal with abstract ideas, whereas lower-level managers normally spend more time dealing with observable objects and processes Other important managerial skills 

Managing human capital

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Effective communication

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Inspiring commitment

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Managing change

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Structuring work and getting things done

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Facilitating the psychological and social contexts of work

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Using purposeful networking

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Collaboration and team building

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Critical thinking and problem solving

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Managing decision-making processes

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Managing strategy, creativity and innovation

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Managing logistics and technology

21

ST

CENTURY UNDERSTANDINGS OF MANAGEMENT

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Increasing emphasis on motivation, leadership and relationships

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The key skill is communication – both oral and verbal but also the ability to develop and effectively communicate a vision/position to different audiences – the management of „meaning‟

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Less „overt control‟ as organisations take advantage technology

DEMANDS ON MODERN MANAGERS 

Managers in the 21st century often required to work „smarter and harder‟ – increased working hours, doing more with less staff/resources, the „globalisation‟ of the business environment



Pressures of conflicting demands – delivering „shareholder value‟ while being ethically and environmentally responsible

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„Empowerment‟ efforts of the 1990s has seen increased demands for flexibility, „work life balance‟ and „learning opportunities‟ by staff

6

Managing Organisations and People – MGMT1001 SUMMARY 1 

Describe the characteristics of an organisation o

Managers work in an organisation, which is a deliberate arrangement of people to accomplish some specific purpose.

o

Organisations have 3 characteristics:

o 





They are composed of people



They have a deliberate structure

Many of today‟s organisations are structured to be more open, flexible and responsive to changes, and have undergone some major changes in relation to how they operate Managers are important to organisations for three reasons: 

Organisations need their managerial skills and abilities in uncertain, complex and chaotic times



Managers are critical to getting things done in organisations



Managers contribute to employee productivity and loyalty

o

The way employees are managed can affect the organisation‟s financial performance

o

Managerial ability has been shown to be important in creating organisational value

Classify managers and non-managerial employees o



They have a distinctive purpose

Explain why managers are important to organisations o





Managers coordinate and oversee the work of other people so that organisational goals can be accomplished. Non-managerial employees work directly on a job or task and have no one reporting to them. In traditionally structured organisations, managers can be first-line, middle or top. In other more loosely configured organisations, the managers may not be as readily identifiable although someone must fulfil that role

Define the terms: management, efficiency and effectiveness o

Management is what managers do, and management involves coordinating and overseeing the efficient and effective completion of others‟ work activities

o

Efficiency means getting the most output from the least amount of input, or doing things right

o

Effectiveness means doing those work activities that help the organisation to reach its goals, or doing the right things

Describe the functions, roles and skills of managers o

o

o

The 4 functions of management: 

Planning (defining goals, establishing strategies and developing plans)



Organising (arranging and structuring work)



Leading (working with and through people)



Controlling (monitoring, comparing and correcting work performance)

Mintzberg‟s managerial roles include: 

Interpersonal roles, which involve people and other ceremonials/symbolic duties (figurehead, leader and liaison)



Informational roles, which involve collecting, receiving and disseminating information (monitor, disseminator and spokesperson)



Decisional roles, which involve making choices (entrepreneur, disturbance handler, resource allocator and negotiator)



Mintzberg‟s newest description of what managers do proposes that managing is about influencing action, which managers do in 3 ways: 

By managing actions directly



By managing people who take action



By managing information that impels people to take action

Katz managerial skills include technical (job-specific knowledge and techniques), human or interpersonal (ability to work well with people) and conceptual (ability to think and conceptualise). Technical skills are most important for lower-level managers, while conceptual skills are most important for top managers. Human skills are equally important for all managers. 7

Managing Organisations and People – MGMT1001 WEEK 3: T3

CHAPTER 9 – UNDERSTANDING INDIVIDUAL BEHAVIOUR WHY LOOK AT INDIVIDUAL BEHAVIOUR IN ORGANISATIONS? Behaviour – how people act Organisational behaviour (OB) – a field of study concerned with the actions (behaviours) at work Organisational behaviour has a small visible dimension and a much larger hidden portion. FOCUS OF ORGANISATIONAL BEHAVIOUR Organisational behaviour focuses on 2 main areas: 

Individual behaviour o



This area includes topics such as attitudes, personality, perception, learning and motivation

Group behaviour o

Includes norms, roles, team building, leadership and conflict

GOALS OF ORGANISATIONAL BEHAVIOUR 

The goals of OB are to explain (why employees engage in some behaviours rather than others), predict (how employees will respond to various actions the manager might take) and influence (how employees behave) behaviour

IMPORTANT EMPLOYEE BEHAVIOURS 

Employee productivity – a performance measure of both efficiency and effectiveness



Absenteeism – the failure to report to work



Turnover – the voluntary and involuntary permanent withdrawal from an organisation o

It can be a problem because of increased recruiting, selection, training costs and work disruptions



Organisational citizenship behaviour (OCB) – discretionary behaviour that is not part of an employee‟s formal job requirements, but that nevertheless promotes the effective functioning of the organisation



Job satisfaction – an employee‟s general attitude towards his/her job



Workplace misbehaviour – any form of intentional behaviour that has negative consequences for the organisation or individuals within the organisation

ATTITUDES Attitudes – evaluative statements, either favourable or unfavourable, concerning objects, people or events Components of an attitude: 

Cognition component – that part of an attitude that is made up of the beliefs, opinions, knowledge and information held by a person



Affective component – that part of an attitude that is the emotional or feeling part



Behavioural component – that part of an attitude that refers to an intention to behave in a certain way towards someone or something

Job-related attitudes: JOB SATISFACTION A person with a high level of job satisfaction has a positive attitude towards their job, while a person who is dissatisfied with their job has a negative attitude Job satisfaction is affected by level of income earned and by the type of job a worker does. The effects job satisfaction has on employee behaviour: 

Satisfaction and productivity



Satisfaction and absenteeism

o o 

Satisfied and happy employees = productivity Satisfied employees tend to have lower levels of absenteeism

Job satisfaction and turnover o

Satisfied employees have lower levels of turnover; dissatisfied employees have higher levels of turnover

o

Turnover is affected by the level of employee performance 

The preferential treatment afforded superior employees makes satisfaction less important in predicting their turnover decisions 8

Managing Organisations and People – MGMT1001 

Job satisfaction and customer satisfaction o

The level of job satisfaction for frontline employees is related to increased customer satisfaction and loyalty

o

Actions to increase job satisfaction for customer service workers:

o



Hire upbeat and friendly employees



Reward superior customer service



Provide a positive work climate



Use attitude surveys to track employee satisfaction

Interaction with dissatisfied customers can increase an employee‟s job dissatisfaction

JOB INVOLVEMENT Job involvement – the degree to which an employee identifies with his/her job, actively participates in it, and considers his/her job performance to be important to self-worth High levels of job involvement has been found to be related to fewer absences, lower resignation rates and higher employee engagement with their work ORGANISATIONAL COMMITMENT Organisational commitment – an employee‟s orientation towards the organisation in terms of his/her loyalty to, identification with and involvement in the organisation Leads to lower levels of both absenteeism and turnover EMPLOYEE ENGAGEMENT Employee engagement – employees being connected to, satisfied with and enthusiastic about their job Benefits include: 

Highly engaged employees are two-and-a-half times more likely to be top performer than their less-engaged co-workers



Companies with highly engaged employees have higher retention rates, which help keep recruiting and training costs low

ATTITUDES AND CONSISTENCY Individuals try to reconcile differing attitudes and align their attitudes and behaviour so they appear rational and consistent. When there is an inconsistency, they will take steps to make it consistent either by altering their attitudes or behaviour, or by developing a rationalisation for the inconsistency. COGNITIVE DISSONANCE THEORY Cognitive dissonance – any incompatibility or inconsistency between attitudes, or between behaviour and attitudes Any form of inconsistency is uncomfortable and individuals will try to reduce the dissonance Intensity of the desire to reduce the dissonance is influenced by: 

The importance of the factors creating the dissonance



The degree to which an individual believes that the factors causing the dissonance are controllable



The rewards that may be involved is dissonance

PERSONALITY Personality – the unique combination of emotional, thought and behavioural patterns that affects how a person reacts and interacts with others MYERS-BRIGGS TYPE INDICATOR (MBTI®) 1. Social interaction – Extrovert or Introvert (E or I) o

An extrovert is someone who is outgoing, dominant and often aggressive, and who wants to change the world. They need a work environment that is varied and action oriented, that lets them be with others, and that gives them a variety of experiences

o

An introvert is someone with is shy and withdrawn and focuses on understanding the world. They prefer a work environment that is quiet and concentrated, that allows them to be alone, and that gives them a change to explore in depth a limited set of experiences

2. Preference for gathering data – Sensing or iNtuitive (S or N) o

Sensing types dislike new problems unless there are standard ways to solve them; they like an established routine, have a high need for closure, shoe patience with routine details and tend to be good at precise work

o

Intuitive types are individuals who like solving new problems, dislike doing the same thing over and over again, jump to conclusions, are impatient with routine details and dislike taking time for precision 9

Managing Organisations and People – MGMT1001 3. Preference for decision making – Feeling or Thinking (F or T) o

Feeling types rely on their personal values and emotions. They are aware of other people and their feelings, need occasional praise, dislike telling people unpleasant things, tend to be sympathetic and relate well to most people

o

Thinking types use reason and logic to handle problems. They are unemotional and uninterested in people‟s feeling, are able to reprimand people and fire them when necessary, may seem hard-hearted, and tend to relate well only to other thinking types

4. Style of making decisions – Perceptive or Judgemental (P or J) o

Perceptive types are curious, spontaneous, flexible, adaptable and tolerant. They focus on starting a task, postpone decisions, and want to find out all about the task before starting it

o

Judging types want control and prefer their world to be ordered and structured. They are good planners, decisive, purposeful and exacting. They focus on completing a task, make decisions quickly, and want only the information necessary to get a task done

The MBTI® has been used to help managers select employees who are well matched to certain types of jobs. It is also likely that you will be asked to take a Myers-Briggs test as part of a selection process. The MBTI® can be a useful tool for understanding personality and predicting people‟s behaviour. THE BIG 5 MODEL Big Five Model – five-factor model of personality that includes extraversion, agreeableness, conscientiousness, emotional stability and openness to experience 

Extroversion – the degree to which someone is sociable, talkative, assertive and comfortable in relationships with others



Agreeableness – the degree to which someone is good-natured, cooperative and trusting



Conscientiousness – the degree to which someone is responsible, dependable, persistent and achievement oriented



Emotional stability – the degree to which someone is calm, enthusiastic and secure (positive) or tense, nervous, depressed and insecure (negative)



Openness to experience – the degree to which some is has a wide range of interests and is imaginative, fascinated with novelty, artistically sensitive and intellectual

The Big 5 Model provides more than just a personality framework. Research has shown that important relationships exist between these personality dimensions and job performance ADDITIONAL PERSONALITY INSIGHTS LOCUS OF CONTROL Locus of control – a personality attribute that reflects the degree to which people believe they control their own fate External locus: persons who believe that what happens to them are due to luck or chance (the uncontrollable effects of outside forces) Internal locus: persons who believe that they control their own destiny MACHIAVELLIANISM Machiavellianism (Mach) – a measure of the degree to which people are pragmatic, maintain emotional distance and believe that ends can justify means SELF-ESTEEM (SE) Self-esteem – an individual‟s degree of like or dislike for himself or herself SELF-MONITORING Self-monitoring – a personality trait that measures an individual‟s ability to adjust his or her behaviour to external, situational factors High self-monitors: 

Are sensitive to external cues and behave differently in different situations



Can present contradictory public persona and private selves

Low self-monitors 

Do not adjust their behaviour to the situation



Are behaviourally consistent in public and private

RISK TAKING Risk taking – the willingness to take risks OTHER PERSONALITY TRAITS Proactive personality – people who identify opportunities, show initiative, take action and persevere until meaningful change occurs Resilience – an individual‟s ability to overcome challenges and turn them into opportunities 10

Managing Organisations and People – MGMT1001 EMOTIONS AND EMOTIONAL INTELLIGENCE Emotions – intense feelings that are directed at someone or something Emotional intelligence – the ability to notice and manage emotional cues and information EI composed of 5 dimensions: 

Self awareness – being aware of what you are feeling



Self-management – being able to manage your emotions and impulses



Self-motivation – being able to persist in the face of setbacks and failures



Empathy – being aware of how others are feeling



Social skills – being able to handle the emotions of others

IMPLICATIONS FOR MANAGERS The main value in understanding personality differences lies in employee selection, which is demonstrated by the numbers of organisations today that use personality tests when recruiting. Managers are likely to have higher-performing and more satisfied employees if consideration is given to matching personalities with job. John Holland‟s theory state that an employee‟s satisfaction with his or her job, as well as his/her likelihood of leaving that job, depend on the degree to which the individual‟s personality matches the occupational environment. Holland‟s theory proposed that satisfaction is highest and turnover lowest when personality and occupation are compatible. The key points of this theory: 

There do appear to be intrinsic differences in personality between individuals



There are different types of jobs



People in job environments compatible with their personality types should be more satisfied and less likely to resign voluntarily than should people in incongruent jobs

PERCEPTION Perception – the process of organising and interpreting sensory impressions in order to give meaning to the environment Factors that influence perception 

Perceiver‟s personal characteristics (interests, biases and expectations)



Target‟s characteristics (distinctiveness, contrast and similarity)



Situation (context) factors such as place, time, location draw attention or distract from the target

ATTRIBUTION THEORY Attribution theory – a theory that explains how we judge people differently depending on the meaning we attribute to a given behaviour Internally caused behaviour: under the individual‟s control Externally caused behaviour: due to outside factors Determining the source of behaviours: 

Distinctiveness refers to whether an individual displays different behaviours in different situations



Consensus: behaviours similar to others in same situation



Consistency: regularity of the same behaviour

Fundamental attribution error – the tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behaviours of others Self-serving bias – the tendency for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors SHORTCUTS FREQUENTLY USED IN JUDGING OTHERS Assumed similarity – the belief that others are like oneself Stereotyping – judging a person on the basis of one‟s perception of a group to which he or she belongs Halo effect – a general impression of an individual based on a single characteristic 11

Managing Organisations and People – MGMT1001 SUMMARY 9 

Identify the focus of individual behaviour o









Just like an iceberg, it is the hidden organisational elements (attitudes, perceptions, norms) that make understanding individual behaviour so challenging. OB focuses on 3 areas: individual behaviour, group behaviour and organisational aspects. The goals of OB are to explain, predict and influence behaviour

Define the 6 important employee behaviours that managers want to explain, predict and influence o

Employee productivity is a performance measure of both efficiency and effectiveness

o

Absenteeism is the failure to report to work

o

Turnover is the voluntary and involuntary permanent withdrawal from an organisation

o

Organisational citizenship behaviour (OCB) is discretionary behaviour that is not part of an employee‟s formal job requirements but which promotes the effective functioning of an organisation

o

Job satisfaction is an individual‟s general attitude towards his/her job

o

Workplace misbehaviour is any intentional employee behaviour that is potentially harmful to the organisation or individuals within the organisations

Explain the role that attitudes play in job performance o

Cognitive component refers to the beliefs, opinions, knowledge or information held by a person

o

Affective component refers to the emotional or feeling part of an attitude

o

Behavioural component refers to an intention to behave in a certain way towards someone or something

o

Job satisfaction refer to a person‟s general attitude towards his/her job performance

o

Job involvement is the degree to which an employee identifies with his/her job, actively participates in it and considers his/her job performance to be important to his/her selfworth

o

Organisational commitment is the degree to which an employee identifies with a particular organisation and its goals and wishes to maintain membership in that organisation

o

Employee engagement is when employees are connected to, satisfied with an enthused about their job

o

Job satisfaction positively influences productivity, lowers absenteeism levels, lowers turnover rates, promotes positive customer satisfaction, moderately promotes OCB, and helps minimise workplace behaviour, or rationalising the inconsistency

Describe the various personality theories o

The MBTI measures 4 dimensions: social interaction, preference for gathering data, preference for decision making, and style of making decisions

o

The Big Five Model consists of 5 personality traits: extraversion, agreeableness, conscientiousness, emotional stability and openness to experience

o

The five personality traits that help explain individual behaviour in organisations are locus of control, Machiavellianism, self-esteem, self-monitoring and risk taking.

o

Other personality traits include proactive personality and resilience. How a person responds emotionally and how they deal with their emotions is a function of personality. A person who is emotionally intelligent has the ability to notice and to manage emotional cues and information

Describe perception and factors that influence it o

Perception is how we give meaning to our environment by organising and interpreting sensory impressions. Since people behave according to their perceptions, managers need to understand it.

o

Attribution theory depends of 3 factors: Distinctiveness is whether an individual displays different behaviours in different situations (i.e. is the behaviour unusual?)  Consensus is whether other facing a similar situation respond in the same way  Consistency is when a person engages in behaviours regularly and consistently. Whether these 3 factors are high or low in frequency helps managers determine whether employee behaviour is attributed to external or internal causes 

o o

The fundamental attribution error is the tendency to underestimate the influence of external factors and overestimate the influence of internal factors.

o

The self-serving bias is the tendency to attribute our own successes to internal factors and to put the blame for personal failure on external factors 12

Managing Organisations and People – MGMT1001 WEEK 4: T4

CHAPTER 6 – MANAGERS AND COMMUNICATION UNDERSTANDING MANAGERIAL COMMUNICATION WHAT IS COMMUNICATION? Communication – the transfer and understanding of meaning. Communication is a two-way transaction dialogue and is about overcoming barriers Interpersonal communication – communication between two or more people Organisational communication – all the patterns, networks and systems of communication within an organisation FUNCTIONS OF COMMUNICATION 

Communication is being used to control



It encourages motivation by clarifying to employees what is to be done, how well they are doing, and what can be done to improve their performance if it is not up to par



Communication provides a release for emotional expression of feelings and for fulfilment of social needs



Individuals and groups need information in order to get things done in organisations

INTERPERSONAL COMMUNICATION Verbal:  Pronunciation  Accents  Clarity

Written:  Sentence construction  Flow/logic between paragraphs  The use of appropriate language  Clarity  Presentation

Non-verbal:  Kinesics  Occulesics  Haptics  5 categories based on degrees of intimacy o Functional/professional o Social/polite o Friendship/warmth o Love/intimacy o Sexual  Proxemics: 4 zones: o Intimate zone (15-45 cm) o Personal zone (45-120cm) o Social (1.2-3.5m) o Public zone (3.5+m)  Paralanguage o Tempo o Pitch o Intonation

Before communication can take place, a purpose, expressed as a message to be conveyed, must exist. It passes between a source (the sender) and a receiver. The message is converted to symbolic form (encoding) and passed by way of some medium (channel) to the receiver, who retranslates the sender‟s message (decoding). Message – a purpose to be conveyed Encoding – converting a message into symbols Channel – the medium a message travels along Decoding – retranslating a sender‟s message Communication process – the seven elements involved in transferring meaning from one person to another Noise – any disturbances that interfere with the transmission, receipt or feedback of a message A sender initiates a message be encoding a thought. 4 conditions influence the effectiveness of that encoded message: 

The skills



Attitudes



Knowledge of the sender



Socio-cultural system

13

Managing Organisations and People – MGMT1001 Noise can distort the communication process through the process of conveying a message from a sender to a receiver. METHODS OF COMMUNICATING INTERPERSONALLY Communication methods: 

Face-to-face



Bulletin boards



Telephone



Audio- and videotapes



Group meetings



Employee publications



Formal presentations



Hotlines



Memos



Email



Traditional mail



Computer conferencing



Fax machines



Voice mail



Employee publication



Teleconferences



Company publications



Videoconferences

Managers can use 12 questions to help them evaluate the various communication methods: 

Feedback: how quickly can the receiver respond to the message



Complexity capacity: can the method effectively process complex messages?



Breadth potential: how many different messages can be transmitted using this method?



Confidentiality: can communicators be reasonably sure their messages are received only by those intended?



Encoding ease: can the sender easily and quickly use this channel?



Decoding case: can the receiver easily and quickly decode messages?



Time-space constraint: do senders and receivers need to communicate at the same time and in the same space?



Cost: how much does it cost to use this method?



Interpersonal warmth: how well does this method convey interpersonal warmth?



Formality: does this method have the needed amount of formality



Scanability: does this method allow the message to be easily browsed or scanned for relevant information?



Time of consumption: does the sender or the receiver exercise the greater control over when to deal with the message?

Which method a manager ultimately chooses should reflect the needs of the sender, the attributes of the message, the attributes of the channel and the needs of the receiver. Non-verbal communication – communication transmitted without words An important part of interpersonal communication is non-verbal communication. Some of the most meaningful communications are neither spoken nor written. Best-known types of non-verbal communication: 

Body language – refers to gestures, facial expressions and other movements of the body that convey meaning o



Knowing the meaning behind someone‟s body moves and learning how to put forth your best body language can help you personally and professionally

Verbal intonation – am emphasis given to words or phrases that conveys meaning

BARRIERS TO EFFECTIVE INTERPERSONAL COMMUNICATION FILTERING Filtering – the deliberate manipulation of information to make it appear more favourable to the receiver. As information is communicated up through organisational levels, it is condensed and synthesised by senders so that those on top do not become overloaded with information. The more hierarchical levels there are in an organisation, the more opportunities there are for filtering. As organisations become less dependent on strict hierarchical arrangements and instead use more collaborative, cooperative work arrangements, information filtering may become less of a problem. The use of email to communicate in organisations reduces filtering because communication is more direct 14

Managing Organisations and People – MGMT1001 The organisational culture encourages or discourages filtering by the type of behaviour it rewards. The more that organisational rewards emphasise style and appearance, the more managers will be motivated to filter communications in their favour. EMOTIONS A person will often interpret the same message differently, depending on his/her emotion (happy or sad). People often disregard their rational and objective thinking processes and substitute emotional judgements. INFORMATION OVERLOAD Information overload – when the information a person as to work with exceeds his/her processing capacity When this happen, managers tend to select out, ignore, pass over, forget information, or they may put off further processing until the overload situation is over. This results in lost information and less effective communication. DEFENSIVENESS When people feel they are being threatened, they tend to react in ways that reduce their ability to achieve mutual understanding. I.e. they become defensive, engaging in behaviours such as verbally attacking others, making sarcastic remarks, being overly judgmental and questioning others‟ motives. LANGUAGE Words mean different things to different people. Age, education and cultural background are three of the more obvious variables that influence the language a person uses and the definitions they give to words. In an organisation, employees typically come from diverse backgrounds and have different patterns of speech. Even employees from the same organisation but in different departments often have different jargon Jargon – specialised terminology or technical language that members of a group use to communicate among themselves NATIONAL CULTURE Communication differences can also arise from one‟s national culture, as well as from the different languages that individuals use. Interpersonal communication is not conducted in the same way around the world. In individualistic countries, communication patterns tend to be oriented to the individual and are clearly spelled out. Managers rely heavily on reports, memos, announcements, and other formal forms of communication In collectivist or socially oriented cultures, there is a strong desire for harmony, hierarchy and saving face. OVERCOMING THE BARRIERS USE FEEDBACK Many communication problems can be directly attributed to misunderstandings and inaccuracies. These problems are less likely to occur if the manager uses the feedback loop in the communication process, either verbally or non-verbally The manager can ask as set of questions about a message to determine whether or not the message was received and understood as intended. The manager can also ask the receiver to restate the message in his/her own words. If the manager then hears what was intended, understanding and accuracy should be enhanced. Feedback also includes subtler methods than directly asking questions or having the receiver summarise the message. General comments can give a manager a sense of the receiver‟s reaction to a message. Feedback does not have to be conveyed in words, actions of individuals can show whether a message is understood SIMPLIFY LANGUAGE Effective communication is achieved when a message is received and understood. Understanding is improved by simplifying the language used in relation to the audience intended. LISTEN ACTIVELY Listening is an active search for meaning, whereas hearing is passive. In listening, two people are engaged in thinking: the sender and the receiver Active listening – listening for full meaning without making premature judgments or interpretations Active listening is enhanced by developing empathy with the sender, because senders differ in attitudes, interests, needs and expectations, empathy makes it easier to understand the actual content of a message. An empathetic listener reserves judgement on the message‟s content and carefully listens to what is being said. The goal is to improve your ability to receive the full meaning of a communication without having it distorted by premature judgments or interpretations Active listening behaviours 

Avoid interrupting speaker

 15

Show empathy

Managing Organisations and People – MGMT1001   

Paraphrase what has been said Avoid distracting actions or gestures Do not over-talk CONSTRAIN EMOTIONS

 

Show interest by making eye contact Exhibit affirmative head nods and appropriate facial expressions

Emotions can severely cloud and distort the transference of meaning. It is important to refrain from communicating until he/her has regained composure. WATCH NON-VERBAL CUES Non-verbal messages carry a great deal of weight. When non-verbal cues are inconsistent with the oral message, the receiver becomes confused and the clarity of the message suffers. ORGANISATIONAL COMMUNICATION FORMAL VERSUS INFORMAL COMMUNICATION Formal communication – communication that follows the official chain of command or which is required to do one‟s job Informal communication – communication that is not defined by the organisation‟s structural hierarchy Informal communication system fulfils 2 purposes in organisations: 

It permits employees to satisfy their need for social interaction



It can improve an organisation‟s performance by creating alternative, and frequently faster and more efficient, channels of communication

DIRECTION OF COMMUNICATION FLOW DOWNWARD Downward communication – communication that flows downward from a manager to employees It is used to inform, direct, coordinate and evaluate employees. When managers assign goals to their employees, they are using downward communication. Managers are also using downward communication be providing employees with job descriptions, informing them of organisational policies and procedures, pointing out problems that need attention, or evaluating their performance. UPWARD COMMUNICATION Upward communication – communication that flows upward from employees to managers It keeps managers aware of how employees feel about their jobs, their co-workers and the organisation in general. Managers also rely on upward communication for ideas on how things can be improved. The level of upward communication used depends on the organisational culture. LATERAL COMMUNICATION Lateral communication – communication that takes place between any employees on the same organisational level Horizontal communications are frequently needed to save time and facilitate coordination. However, must keep their managers informed DIAGONAL COMMUNICATION Diagonal communication – communication that cuts across both work areas and organisational levels (across different department and different organisational level) In the interest of efficiency and speed, diagonal communication can be beneficial. And the increased use of email facilitates diagonal communication. However, must keep their managers informed ORGANISATIONAL COMMUNICATION NETWORKS Communication network – the variety of patterns of vertical and horizontal flows of organisational communication TYPES OF COMMUNICATION NETWORKS 

Chain o





Communication flows according to the formal chain of command, both downward and upward.

Wheel o

Communication flowing between a clearly identifiable and strong leader and others in a work group or team

o

The leader serves as the hub through whom all communication passes

All-channel o

Communication flows freely among all members of a work team

The type of network used depends on the goals Criteria

Chain

Wheel

All-channel

Speed

Moderate

Fast

Fast

Accuracy

High

High

Moderate

16

Managing Organisations and People – MGMT1001 Emergence of leader

Moderate

High

None

Member satisfaction

Moderate

Low

High

THE GRAPEVINE Grapevine – the informal organisational communication network The grapevine is active in almost every organisation. The grapevine is an important part of any group or organisation communication network and is well worth understanding. It identifies for managers those bewildering issues that employees consider important and anxiety producing. It acts as a filter and a feedback mechanism, picking up on the issues employees consider relevant. It is possible to analyse what is happening on the grapevine, what information is being passed, how information seems to flow along the grapevine, and which individuals seen to be key conduits of information on the grapevine Bt being aware of the grapevine‟s flow and patterns, managers can stay on top of issues that concern employees and can use the grapevine to disseminate important information. Rumours that flow along the grapevine also can never be eliminated entirely. However, managers can minimise the negative consequences of rumours by limiting their range and impact, by communicating openly, fully and honestly with employees, particularly in situations in which employees may not like proposed or actual managerial decisions or actions.

SUMMARY 6 

Define the nature and function of communication o





Identify the 7 components of the communication process o

There is a sender who has a message

o

A message is a purpose to be conveyed

o

Encoding in converting a message into symbols

o

Channel is the medium a message travels along

o

Decoding is when the receiver retranslates a sender‟s message

o

Feedback

o

It should also be noticed that the entire communication process is susceptible to noise – disturbances that interfere with the transmission, receipt or feedback of a message

Compare and contrast methods of interpersonal communication o



Managers can evaluate the various communication methods according to their feedback, complexity capacity, breadth potential, confidentially, encoding ease, decoding ease, timespace constraint, cost, interpersonal warmth, formality, scanability, and time of consumption

Identify barriers to effective interpersonal communication, and describe how to overcome them o



Communication is transfer and understanding of meaning. Interpersonal communication is communication between 2 or more people. Organisational communication is all the patterns, networks and systems of communication within an organisation. The functions of communication include controlling employee behaviour, motivating employees, providing a release for emotional expression of feelings and fulfilment of social needs, and providing information

The barriers to effective communication include filtering, emotions, information overload, defensiveness, language and national culture. Managers can overcome these barriers by using feedback, simplifying language, listening actively, constraining emotions and watching for non-verbal cues

Explain how communication can flow most effectively in organisations o

Formal communication is communication that takes place within prescribed organisational work arrangements. Informal communication is not defined by the organisation‟s structural hierarchy. Communication in an organisation can flow downward, upward, laterally and diagonally.

o

The 3 communication networks include the chain, the wheel, and the all-channel 17

Managing Organisations and People – MGMT1001 o

Managers should manage the grapevine as an important information network. They can minimise the negative consequences of rumours by communicating openly, fully and honestly with employees

WEEK 5: T5

CHAPTER 10 – UNDERSTANDING GROUPS AND TEAMS UNDERSTANDING GROUPS Individuals act differently in groups compared with when they are alone. Therefore, if managers want to become effective in designing and managing groups they need to develop better understanding of group behaviour and the characteristics of effective teams The terms groups and teams are used interchangeably when discussing organisational settings WHAT IS A GROUP? Group – 2 or more people with a common goal, but there is no psychological contract between them – the outcomes are less dependent on all the members working together and there is usually no shared responsibility and accountability for outcomes. Groups can be either formal (formed by organisations) or informal (social). For work groups in organisations are also called teams. Examples of formal goals 

Command groups: these are the basic, traditional work groups determined by formal authority relationships and depicted on the organisational chart. They typically include a manager and those subordinates who report directly to the manager



Cross-functional teams: these bring together the knowledge and skills of individuals from various work areas in order to come up with solutions to operational problems. Cross-functional teams also include groups whose members have been trained to do each other‟s jobs



Self-managed teams: these are essentially independent groups that, in additional to doing their operating jobs, take on traditional management responsibilities such as hiring, planning and scheduling, and performance evaluations



Task forces: these are temporary groups created to accomplish a specific task. Once that task is complete, the group is disbanded

Why do we need teams? 



Complex projects needs more than one person o

Multiple areas of expertise – one person does not have all the skills

o

Sequential tasks

o

Time (one person would take too long to complete the project)

Teams offer a diversity of knowledge, ideas and opinions

STAGES OF GROUP DEVELOPMENT Forming – the 1st stage of group development in which people join the group and then define the group‟s purpose, structure and leadership 

It has 2 phases: o

People join the group

o

The task of defining the group‟s purpose, structure and leadership. This phase is characterised by a great deal of uncertainty as members „test the waters‟ to determine what types of behaviour are unacceptable

Storming – the 2nd stage of group development, which is characterised by intragroup conflict 

Members accept the existence of the group but resist the control that the group imposes on individuality. There is conflict over who will control the group.



When this stage is complete, there should be a relatively clear hierarchy of leadership within the group and agreement on the group‟s direction

Norming – the 3rd stage of group development, which is characterised by close relationships and cohesiveness 

There is a strong sense of group identity and camaraderie



When complete, the group structure solidifies and the group has assimilated a common set of expectations/norms regarding member behaviour

Performing – the 4th stage of group development, when the group is fully functional 

The group structure is in place and accepted by group members. Group members‟ energies have moved from getting to know and understand each other to performing that task at hand.



Last stage for permanent groups

Adjourning – the final stage of group development for temporary groups during which the group members are concerned with wrapping-up activities rather them task performance 18

Managing Organisations and People – MGMT1001 

The group prepares to disband.



High levels of task performance are no longer the group‟s top priority. Attention is directed towards wrapping-up activities

It is not always following this developmental process: 

A stage can outperform others



Several stages may be going on simultaneously



Regress to previous stages

GROUP STRUCTURE Work groups have an internal structure that shapes members‟ behaviour and makes it possible to explain, predict and influence a large portion of individual behaviour within the group as well as the performance of the group. Internal structure: 1. ROLES o

Role – behaviour patterns expected of someone occupying a given position in a social unit

o

In a group, individuals are expected to do certain things because of their position (role) in the group.

o

Formal roles include titles and other status symbols. Informal roles are not as clearly defined

o

These roles tend to be oriented towards either task accomplishment or maintaining group member satisfaction

o

Task-related role – roles (behaviours) that help the group to focus on the task at hand

o

Maintenance-related role – roles that help maintain good interpersonal relationships within the group

o

Formal and informal leaders are expected to help the group achieve its goals and to maintain internal processes

o

Self-oriented roles – roles (dysfunctional behaviours) that may hinder or even undermine the team‟s progress (little concern for the group or its goals and are often harmful for the group‟s functioning) Task-related roles:

Maintenance-related roles:

Self-oriented roles:



Clarifying



Encouraging



Attacking



Diagnosing



Blocking

Initiating

Gate keeping (even participation from everyone)







Dominating





Withdrawing



Special pleading



Clowning

Evaluating



Expressing feelings



Opinion seeking



Following



Information gather



Compromising



Harmonising



Summarising



Setting standards

o

A problem arises is that individuals play multiple roles, adjusting their role to the group to which they belong at the time

o

When individuals are confronted by different role expectations, he/she experiences role conflict

2. NORMS o

Norms – standards or expectations that are accepted and shared by a group‟s members

o

How do norms develop? 

We bring our norms with us from old groups to new groups



New norms develop based on what happens early in a group‟s existence

o

Although each group will have its own unique set of norms, there are common types of norms in most organisations that focus on effort and performance, dress and loyalty

o

Factors that can determine the speed of norm formation: 

Individual characteristics



Clarity of the norm



The number of people who have already conformed to the norm 19

Managing Organisations and People – MGMT1001 

The quality of the interpersonal relationships within the group



The sense of group identification

3. CONFORMITY o

As group members, we often want to be considered one of the group and to avoid being visibly different. We find it more pleasant to be in agreement and harmony, to be a positive part of the group, than to be disruptive, even if disruptive may be necessary to improve the effectiveness of the group‟s decisions

o

Groupthink – a form of conformity in which group members feel extensive pressure to align their opinions with other opinions

o

The pressure to make a decision that maintains the group‟s cohesiveness can result in groupthink

o

Groupthink does not appear in all groups.

o

Certain group characteristics encourage group think:

o



Strong group identity



Norm that discourages debate and open discussion



Critical thinking is not encouraged or rewarded



Members think their group can do no wrong



Members apply pressure to those who do not support the group



Members often believe they have reached a true consensus



Members want to reinforce the leader‟s beliefs

Solutions: 

Encourage critical, independent thinking



Leader should encourage disagreement and discussion



Be aware that status differences can influence decision making



Bring in outsiders with differing opinions and to evaluate the decision making



To assign someone to perform the role of devils advocate



If the group is large enough, split the group into smaller groups to work on problem solutions

4. GROUP SIZE o

Research has found that small groups are faster at completing tasks than larger ones. However, large groups consistently get better results than smaller ones.

o

Social loafing – the tendency for individuals to expend less effort when working collectively than when working individually 

Tempted to become free-rider

5. GROUP COHESIVENESS o

Group cohesiveness – the degree to which group members are attracted to one another and share the group‟s goals

o

High cohesiveness and high alignment of group and organisational goals = strong increase in productivity

o

High cohesiveness and low alignment of group and organisational goals = decrease in productivity

o

Low cohesiveness and high alignment of group and organisational goals = moderate increase in productivity

o

Low cohesiveness and low alignment of group and organisational goals = no significant effect on productivity

6. LEADERSHIP GROUP PROCESS GROUP DECISION MAKING Many organisational decisions are made by groups. Studies show that managers may spend up to 30 hours a week in group meetings. A large portion of that time is spent formulating problems, developing solutions and determining how to implement to solutions Advantages: 

Groups provide more complete information and knowledge o



A group brings a diversity of experience and perspectives to the decision process that an individual cannot

Groups generate more diverse alternatives 20

Managing Organisations and People – MGMT1001 o



Groups increase acceptance of a solution o



Because groups have a greater amount and diversity of information, they can identify more alternatives than an individual can. This advantage is particularly evident when group members represent different areas of expertise Many decisions fail after the final choice has been made, because people do not accept the solution. Group members are reluctant to fight or undermine a decision they have helped develop

Group increase legitimacy o

The group decision-making process is consistent with democratic ideals, and decisions made by groups may be perceived as more legitimate than decisions made unilaterally by one person

Disadvantages: 

Groups are time-consuming o



Groups risk minority domination o



Members of a group are never perfectly equal. They may differ in organisational rank, experience, knowledge about the problem, influence with other members, verbal skills, and assertiveness. This inequality creates the opportunity for one or more to dominate others, which have some influence on the final decision

There are pressure to conform o



Putting a group together takes time, as does any decision making within the group. The result is that groups almost take more time to reach a solution than it would take an individual

There are pressures to conform in groups. This groupthink undermines critical thinking in the group and eventually harms the quality of the final decisions

There is ambiguous responsibility o

Group members share responsibility, however, responsibilities are weaken in groups

The effectiveness of group decisions making is also influenced by the size of the group, although a larger group provides greater opportunities for diverse representation, it also requires more coordination and more time for members to contribute their ideas CONFLICT MANAGEMENT Conflict – perceived incompatible differences that result in interference or opposition Different views of conflict: 

Traditional view of conflict – the view that all conflict is bad and must be avoided



Human relations view of conflict – the view that conflict is a natural and inevitable outcome in any group



Interactionist view of conflict – the view that some conflict is necessary for a group to perform effectively o

Functional conflicts – conflicts that support a group‟s goals and improve its performance

o

Dysfunctional conflicts – conflicts that prevent a group form achieving its goals

o

3 types of conflicts: 

Task conflict – conflict over content and goals of the work



Relationship conflict – conflict based on interpersonal relationships



Process conflict – conflict over how work gets done

o

Studies demostrate that relationship conflict are almost always dysfunctional because the interpersonal hostilities increase personality clashes and decrease mutual understanding

o

However, low levels of process conflict and low to moderate levels of task conflict are functional

21

Managing Organisations and People – MGMT1001

TURNING GROUPS INTO EFFECTIVE TEAMS Why use teams? 

Creates esprit de crops



Increases performance



Increases flexibility



Takes advantage of workforce diversity



Allows managers to do more strategic management

WHAT IS A TEAM? Team – is 2 or more people psychologically contracted together to achieve a common goal in which all individuals involved share at least some level of responsibility and accountability for the outcome In a work team, the combined individual efforts of team members result in a level of performance that is greater than the sum of those individual inputs Team work + task work = Team effectiveness Team work planning: Team contracts are good because they: 

Prompt team members to consider the team mission and objectives



Help identify important stakeholders for successful team functioning



Identify team member strengths, weakness and working styles

Team contract: 

Outline roles and responsibilities for each member



Specify how the team will function, and how the task will be accomplished



Determine her performance will be evaluated



Can facilitate later team processes, as there are guidelines in place



Can help minimise dysfunctional interpersonal processes

Task work: 

To improve task work, the team can develop a performance strategy



A performance strategy is a deliberate set of plans for what it is the team intends to do, and should include goals and tactics, as well as alternative courses of action



A high quality performance strategy is proactive strategy – planning for future events



A low quality performance strategy is a reactive strategy – responding to events, not planning for them



The strength of forward planning the strategy is that the team has a template to refer to, rather than creating on ad-hoc

Groups vs. teams Groups

Teams

1. One leader clearly in charge

1. Leadership role is shared

2. Accountable only to self

2. Accountable to self and team

3. Purpose is same as broader organisational purpose

3. Team creates specific purpose

4. Work is done individually

5. Meetings characterised by open-ended discussion and collaborative problem solving

4. Work is done collectively

5. Meetings characterised be efficiency; not 22

Managing Organisations and People – MGMT1001 collaboration or open-ended discussion

6. Performance is measured directly by evaluating collective work output

6. Performance is measured indirectly according to its influence on others

7. Work is decided upon and done together

7. Work is decided upon by group leader and delegated to individual group members

8. Can be quickly assembled, deployed, refocused and disbanded

TYPES OF TEAM 



PROBLEM-SOLVING TEAMS o

Problem-solving team – a team from the same department or functional area that is involved in efforts to improve work activities or to solve specific problems

o

Members share ideas or offer suggestions on how work processes and methods can be improved. However, these teams are rarely given the authority to implement any of their suggested actions

SELF-MANAGED WORK TEAMS o

Self-managed work teams – a type of work team that operates without a manager and is responsible for a complete work process or segment

o

The self-managed team is responsible for getting the work done and for managing themselves. This usually includes planning and scheduling of work, assigning tasks to members, collective control over the pace of work, making operating decisions and taking action on problems



CROSS-FUNCTIONAL TEAMS



VIRTUAL TEAMS

o o

Cross-functional team – a work team composed of individuals from various specialities Virtual teams – a type of work team that uses technology to link physically dispersed members in order to achieve a common goal Advantages:

o

Disadvantages:



Saves time (working can continue 24/7)



Saves on travel expenses



May reduce interpersonal difficulties



De-personalised relationships



Poor communication

Successful virtual teams: 

Engage in „social‟ interaction



Have clearly defined roles



Have positive attitudes and commitment to team goals

CREATING EFFECTIVE TEAMS Characteristics of effective team: CLEAR GOALS High-performance teams have a clear understanding of the goals to be achieved. Members are committed to the team‟s goals, know what they are expected to accomplish, and understand how they will work together to achieve these goals RELEVANT SKILLS Effective teams are composed of competent individuals who have the necessary technical and interpersonal skills to achieve the desired goals while working well together. Not everyone who is technically competent has the interpersonal skills to work well as a team member MUTUAL TRUST Effective teams are characterised by high mutual trust among members. I.e. members believe in each other‟s ability, character and integrity. However, trust is fragile. It takes a long time to build and can be easily destroyed. Maintaining trust requires careful attention be managers. The climate for trust within a group tends to be strongly influenced by the organisation‟s culture and the actions of management. Organisations that value openness, honesty and collaborative processes, and encourage employee involvement and autonomy, are more likely to create trusting cultures UNIFIED COMMITMENT Unified commitment is characterised be dedication to the team‟s goals and a willingness to expend extraordinary amounts of energy to achieve them. Members of an effective team exhibit intense loyalty and dedication to the team and are willing to do whatever it takes to help their team succeed GOOD COMMUNICATION

23

Managing Organisations and People – MGMT1001 Members convey messages, verbally and non-verbally, among each other in ways that are readily and clearly understood. Good communication is characterised by a healthy dose of feedback from team members and managers. Feedback helps to guide team members and to correct misunderstandings. Members on high-performing teams are able to quickly and efficiently share ideas and feelings NEGOTIATING SKILLS When jobs are designed around individuals, their job description, the organisation‟s rules and procedures, and other types of formalised documentation clarify employee roles. Effective teams, tend to be flexible and are continually making adjustments as to who does what. This flexibility requires team members to possess negotiating skills. Since problems and relationships are regularly changing in teams, members need to be able to confront and reconcile differences APPROPRIATE LEADERSHIP Leaders can motivate a team to follow them through the most difficult situations, by clarifying, demonstrating that change is possible by overcoming inertia, increasing the self-confidence of team members, and helping members to more fully realise their potential. They help to guide and support the team, but do not control it INTERNAL AND EXTERNAL SUPPORT Internally, the team should have a sound infrastructure, which means having proper training, a clear and reasonable measurement system that team members can use to evaluate their overall performance, an incentive program that recognises and rewards team activities, and a supportive human resource system. The right infrastructure should support members and reinforce behaviours that lead to high levels of performance. Externally, managers should provide the team with the resources needed to get the job done MANAGING TEAMS PLANNING Goal determination is an important part of the planning process. It is important that team members understand and accept the team‟s goals. Every team member needs to know what the goals are. An easy way to check team members‟ understanding of the goals is to have each person write down the goals and then look at their statements. If there are misconceptions about the team‟s goals, a team member can be called to clear them up ORGANISING Organising tasks in managing a team include clarifying authority and structural issues. If the team is a self-managed team, it has already been empowered with the authority to make certain decisions and perform specific work activities. If the organisational culture is supportive of employee involvement and autonomy, then its work teams are likely to have authority over that they do and how they do it. LEADING Important issues in leading that a team must address include what role the leader will play, how conflict will be handled and what communication processes will be used. The team leader plays an important role in directing the efforts of the team. CONTROLLING Performance criteria need to be modified to incorporate teamwork behaviours in employee evaluations. Managers also need to look at how teams are rewarded for their efforts and performance levels. As organisations use teams more frequently, we are seeing an increased use of group incentive plans SUMMARY 10 



Define the term group, and describe the stages of group development o

A group is 2 or more interacting individuals who come together to achieve specific goals. Formal groups are work groups that are defined by the organisation‟s structure and have designated work assignments and specific tasks directed at accomplishing organisational goals. Informal groups are social groups

o

Stages: forming, storming, Norming, performing, and adjourning

Discuss the main components that determine group performance and satisfaction o

The main components that determine group performance and satisfaction include external conditions, group member resources, group structure, group processes and group tasks.

o

External conditions such as availability of resources and organisational goals affect work groups. Group member resources (knowledge, ability, skills, personality traits) can influence what members can do and how effectively they will perform in a group. Group roles generally involve getting the work done or keeping group members happy. Group norms are powerful influences on a person‟s performance and dictate things like work output levels, absenteeism, and promptness. Pressures to conform can heavily influence a person‟s judgment and attitudes. If carried to extremes, groupthink can be a problem. Status systems can be a significant motivator with individual behavioural consequences, esp. if there is incongruence in it. What size group is effective and efficient depends on the task the group is supposed to accomplish. Cohesiveness is related to a group‟s 24

Managing Organisations and People – MGMT1001 productivity. Group decision making and conflict management are important group processes that role a role in performance and satisfaction. 



Differentiate between work groups and teams, and describe 4 common types of teams o

Work groups interact primarily to share information and to make decisions to help each member do his/her job more efficiently and effectively. There is no need or opportunity for work groups to engage in collective work that requires joint effort. On the other hand, work teams are groups whose members work intensively on a specific, common goal using their positive synergy, individual and mutual accountability, and complementary skills.

o

A problem-solving team is one that is focused on improving work activities or solving specific problems. A self-managed work team is responsible for a complete work process or segment and manages itself. A cross-functional team is composed of individuals from various specialities. A virtual team uses technology to link physically dispersed members in order to achieve a common goal

Identify the characteristics of an effective team o

Clear goals, mutual trust, unified commitment, good communication, negotiating skills, appropriate leadership, and internal and external support

WEEK7: T7

CHAPTER 12 – POWER AND POLITICS A definition of power Power – a capacity that A has to influence the behaviour of B so that B acts in accordance with A‟s wishes Power is the capacity to produce intended and foreseen effects on others. The probability that a person will act as another person wishes. The greater B‟s dependency on A, the greater the power A has over B (general dependency postulate). Power is intended influence What is influence? 

The process of altering the attitudes and behaviours of others, using your sources of power



The capacity to be a compelling force on or produce effects on the actions, behaviour, or opinions of others

Dependency – B‟s relationships to A when A possesses something that B requires Contrasting leadership and power Power does not require goal compatibility, merely dependence. Whereas leadership requires some congruence between the goals of the leader and those being led Leadership focuses on the downward influence on followers. It minimises the important of lateral and upward influence patterns. Power does not. Leadership research emphasises style. It seeks answers to questions, whereas the research on power focuses on tactics for gaining compliance. It goes beyond the individual as the exerciser of power, because groups as well as individuals can use power to control other individuals or groups Bases of power Formal power Formal power – based on an individual‟s position in an organisation. Coercive power Coercive power – a power base that is dependent on fear of the negative results form failing to comply It rests on the application of physical sanctions such as the infliction of pain, frustration through the restriction of movement, or the controlling by force of basic physiological or safety needs. At the organisational level, A has coercive power over B if A can dismiss, suspend or demote B, assuming that B values his/her job. If A can assign B work activities that B finds unpleasant or treat B in a manner that B finds embarrassing, A possesses coercive power over B. coercive power can also come from withholding key information. People in an organisation who have data or knowledge that others need can make those others dependent on them Reward power Reward power – compliance achieved based on the ability to distribute rewards that others view as valuable These rewards can be either financial or non-financial Legitimate power Legitimate power – the power a person receives as a result of his/her position in the formal hierarchy of an organisation

25

Managing Organisations and People – MGMT1001 It represents the formal authority to control and use organisational resources based on structural position in the organisation Resources power Resources power – when you have control over valued resources, withholding or bestowing these resources can be used as forms of either punishment or reward Personal power Personal power – ways in which individuals translate power bases into specific actions Expert power Expert power – influence based on special skills or knowledge As jobs become more specialised, we become increasingly dependent on experts to achieve goals Referent power Referent power – influence based on possession by an individual of desirable resources or personal traits Referent power develops out of admiration of another and a desire to be like that person. Charisma – the „gift‟ of power often associated with leadership (connected to appearance, emotions and status) Network power – related to „who you know‟ and „how you know them‟. Often times the informal power structures are more important than the formal structures Compared to other forms of power, persuasion can have give and take, and resemble a communication interaction more than a wielding of power Persuasion power – one‟s ability to persuade is often linked to their credibility and integrity 

Integrity – soundness of moral character; an honest person



Credibility – the objectively determined truthfulness, following through, and accuracy of a person



The amount of credibility you have is determined by how much belief, confidence and faith other people have in you



A person with high credibility is consistently both honest and accurate in his/her communications. People with high credibility are perceived to have more power

Which bases of power are most effective? Research suggests pretty clearly that the personal sources of power are the most effective. Expert and referent power are positively related to employees‟ satisfaction with supervision, their organisational commitment and their performance, whereas reward and legitimate power seen to be unrelated to these outcomes. And coercive power is negatively related to employee satisfaction and commitment CONFLICTS Conflict – a process „in which one party perceives that its interest are being opposed or negatively affected by another‟ (McShane and Travaglione, 2003) These interests can be objective or/and subjective. Conflict may be over distinct issues (substantive) or over feelings (emotional). The conflict may not be obvious to all those involved or to those around them. Only one of the persons involved may feel this disagreement or conflict Types of conflicts: 

Task conflict – conflict over content and goals of the work (share knowledge)



Relationship conflict – conflict based on interpersonal relationships (compromise)



Process conflict – conflict over how work gets done (transparent process)

26

Managing Organisations and People – MGMT1001

Why does conflict occur? 







Individual differences: o

Differences in personality and temperament

o

Gender, generational and cultural differences

o

Lack of effective communication skills

o

Biased interpretations/perceptions or different ways of seeing things

Individual issues: o

Existing psychological conditions

o

Personal stresses outside work impacting at work

Organisational situations: o

Employees kept in the dark

o

Workplace culture that allows bullying, blame or encourages rivalry

o

Competition for advancement

o

Stressful/unfair performance appraisals

o

Unclear grievance processes or uneven application of them

o

A scarcity of resources, such as money, people, supplier or time

Organisational issues/structures o

Can‟t choose who you work with

o

Gap between policy, procedures and practice

o

There exists a weak system for conflict resolution

27

Managing Organisations and People – MGMT1001

Dispute resolution: 

Litigation – using legal proceedings to settle a conflict



Arbitration – an adversarial process involving the hearing and determining of a dispute by a person or persons chosen or agreed to by both parties, and producing a legally binding decision



Mediation – an attempt to bring about a peaceful settlement or compromise between disputants through the objective intervention of a neutral party



Negotiation – a discussion intended to produce a mutually acceptable solution to a complex transaction

WEEK 8: T8

CHAPTER 11 – LEADERSHIP WHO ARE LEADERS AND WHAT IS LEADERSHIP? Leader – someone who can influence others and who has managerial authority Leadership – the process of influencing a group to achieve goals What leaders can influence: 

The interpretation of external events by members



The choice of objectives and strategies to pursue



The motivation of members to achieve their objectives



The mutual trust and motivation of members



The organisation and coordination of work activities



The allocation of resources to activities and objectives



The development of member skills and confidence



The learning and sharing of new knowledge by members



The enlistment of support and cooperation from outsiders



The design of formal structure, programs and systems



The shared beliefs and values of members

EARLY THEORIES OF LEADERSHIP TRAIT THEORIES Trait theories – leadership theories that tried to isolate characteristics that differentiated leaders from non-leaders 28

Managing Organisations and People – MGMT1001 Leadership research in the 1920s and 1930s focused on leader traits, personal characteristics that differentiated leaders from non-leaders 7 traits associated with leadership: 

Drive: leaders exhibit a high effort level. They have a relatively high desire for achievement; they are ambitious; they have a lot of energy; they are tirelessly persistent in their activities; and they show initiatives



Desire to lead: leaders have a strong desire to influence and lead others. They demonstrate the willingness to take responsibility



Honesty and integrity: leader build trusting relationships between themselves and followers by being truthful or non-deceitful and b showing high consistency between word and deed



Self-confidence: followers look to leaders for an absence of self-doubt. Leaders, therefore, need to show self-confidence in order to convince followers of the rightness of their goals and decisions



Intelligence: leaders need to be intelligent enough to gather, synthesise and interpret large amounts of information, and they need to be able to create visions, solve problems and make correct decisions



Job-relevant knowledge: effective leaders have a high degree of knowledge about the company, industry and technical matters. In-depth knowledge allows leaders to make well-informed decisions and to understand the implications of those decisions



Extraversion: leaders are energetic, lively people. They are sociable, assertive and rarely silent or withdrawn

BEHAVIOURAL THEORIES Behavioural theories – leadership theories that identified behaviours that differentiated effective leaders from ineffective leaders THE UNIVERSITY OF LOWA STUDIES The University of Lowa studies explored 3 leadership styles: 1. Autocratic style – a leader who tended to centralise authority, dictate work methods, make unilateral decisions and limit employee participation 2. Democratic style – a leader who tended to involve employees in decision making, delegate authority, encourage participation in deciding work methods and goals, and use feedback as an opportunity for coaching employees 3. Laissez-faire-style – a leader who generally gave the group complete freedom to make decisions and complete the work in whatever way it saw fit THE OHIO STATE STUDIES The Ohio State studies identified 2 important dimensions of leader behaviour: 1. Initiating structure – the extent to which a leader was likely to define and structure his/her role and the roles of group members in the search for goal attainment o

It included behaviour that involved attempts to organise work, work relationships and goals

2. Consideration – the extent to which a leader has job relationships characterised by mutual trust and respect for group members‟ ideas and feelings o

A leader who was high in consideration helped group members with personal problems, was friendly and approachable, and treated all group members as equals. Such leaders showed concern for their followers‟ comfort, well-being, status and satisfaction

High-high leader – a leader high in both initiating structure and consideration behaviours Research fount that a high-high leader sometimes achieved high group task performance and high employee satisfaction THE UNIVERSITY OF MICHIGAN STUDIES They also identified 2 dimensions of leader behaviour: 1. Employee oriented o

Leaders who were employee oriented were described as emphasising interpersonal relations; they took a personal interest in the needs of their followers and accepted individual differences among group members

o

High group productivity and high member satisfaction

2. Production oriented

29

Managing Organisations and People – MGMT1001 o

Leaders tended to emphasise the technical or task aspect of job, were concerned mainly with accomplishing their group‟s tasks, and regarded group members as a means to that end

THE MANAGERIAL GRID Managerial grid – a two-dimensional grid of two leadership behaviours, concern for people and concern for production, which resulted in 5 different leadership styles The grid does not answer what makes a manager an effective leader, it only provide a framework for conceptualising leadership style

SUMMARY OF BEHAVIOURAL THEORIES University of Lowa

Behavioural dimension

Conclusion

Democratic style: involving subordinates, delegating authority, and encouraging participation

Democratic style of leadership was most effective, although later studies shoed mixed results

Autocratic style: dictating work methods, centralising decision making and limiting participation Laissez-faire style: giving group freedom to make decisions and complete work Ohio State

Consideration: being considerate of followers‟ ideas and feelings Initiating structure: structuring work and work relationships to meet job goals

University of Michigan

Employee oriented: emphasised interpersonal relationships and taking care of employees‟ needs Production oriented: emphasised technical or task aspects of job

Managerial Grid

Concern for people: measured leader‟s concern for subordinates or a scale of 1-9 (low-high)

High-high leader achieved high subordinate performance and satisfaction, but not in all situations Employee-oriented leader were associated with high group productivity and higher hob satisfaction Leaders performed best with a 9.9 style (high concern for production and people)

CONTINGENCY THEORIES OF LEADERSHIP Being an effective leader requires not only an understanding of traits and behaviours, but also an understanding of the situation in which the leader is attempting to lead. 30

Managing Organisations and People – MGMT1001 Theories that seek to define leadership style and answer: „if‟ this situation, „then‟ this is the best style to use THE FIEDLER MODEL Fiedler contingency model – a leadership model that proposes that effective group performance depends upon the proper match between a leader‟s style of interacting with his/her followers and the degree to which the situation allows the leader to control and influence The model was based on the premise that a certain leadership style would be most effective in different types of situations. The keys were: 

To define those leadership styles and the different types of situations



To identify the appropriate combinations of style and situation

A key factor in leadership success was an individual‟s basic leadership style, which he classified as either task-oriented or relationship oriented To measure a leader‟s style, Fiedler developed the least-preferred co-worker (LPC) questionnaire. Leas-preferred co-worker (LPC) questionnaire – a questionnaire that measures whether a leader is task or relationship oriented This questionnaire contained 18 pairs of contrasting adjectives. Respondents were asked to think of all to co-worker they has ever has and to describe the one person they least enjoyed working with by rating them on a scale of 1-8 for each of the 18 sets of adjectives. If the leader described the least-preferred co-worker in relatively positive terms (high LPC score – 64+), then the respondent was primarily interested in good personal relations with co-workers and the style would be described as relationship oriented. After an individual‟s leadership style had been assessed through the LPC, it was time to evaluate the situation in order to be able to match the leader with the situation. Situational factors in matching leader to the situation: 

Leader-member relations – one of Fiedler‟s situational contingencies that described the degree of confidence, trust and respect employees had for their leader (good or bad)



Task structure – one of Fiedler‟s situational contingencies that described the degree to which job assignments were formalised and procedurised



Position power – one of Fiedler‟s situational contingencies that described the degree of influence a leader had over power-based activities such as hiring, firing, discipline, promotions and salary increases

2 ways to improve leader effectiveness 1. You could bring in a new leader whose style fit the situation better 2. Change the situation to fit the leader. This could be don‟t by restructuring tasks; by increasing or decreasing the power that the leader had over factors such as salary increases, promotions and disciplinary actions; or by improving the leader-member relations Criticisms: 

It is probably unrealistic to assume that a person cannot change his/her leadership style to fit the situation. Effective leaders can change their styles to meet the needs of a particular situation.



LPC was not very practical



The contingency variables were difficult for practitioners to assess 31

Managing Organisations and People – MGMT1001 THE HERSEY SITUATIONAL LEADERSHIP® MODEL Hersey and Blanchard developed a leadership model that has gained a strong following among management development specialists. Situational Leadership® Model – a leadership contingency model that focuses on follower‟s readiness Hersey argues that successful leadership is achieved by selecting the right leadership style, which is contingent on the level of the followers‟ readiness Readiness – the extent to which people have the ability and willingness to accomplish specific task Hersey also used the task and relationship behaviours. However, Hersey combined the two, which lead to 4 specific leadership styles: 

Telling (high task-low relationship): the leaders defines roles and tell people what to do, and how, when and where to do the various tasks



Selling (high task-high relationship): the leader provides both directive and supportive behaviours



Participating (low-task-high relationship): the leader and follower share in decision making; the main role of the leader is facilitating and communicating



Delegating (low task-low relationship): the leader provides little direction or support

4 stages of readiness: 1. R1: people are both „unable and unwilling‟ to take responsibility for doing something. Followers lack the appropriate skills, and are either unwilling or lack the confidence to do the job 2. R2: people are „unable but willing‟ to do necessary job tasks. Followers are motivated or confident, but currently lack the appropriate skills 3. R3: people are „able but unwilling‟ to do that the leader wants. Followers are competent, but wither do not want to do something or feel insecure 4. R4: people are „able and willing‟ to do what is asked of them. Followers are competent and willing/confident LEADER PARTICIPATION MODEL (VROOM AND YETTON) Leader Participation Model argues that leader behaviour must be adjusted to reflect the task structure (whether it is routine, non-routine, or in between) based on a sequential set of rules (contingencies) for determining the form and amount of follower participation in decision making in a given situation Time-driven Model: decision-making contingencies (high or low) 

Decision significance



Importance of commitment



Leadership expertise



Likelihood of commitment



Group support of objectives



Group expertise



Team competence

PATH-GOAL THEORY Path-goal theory – a leadership theory that says it is the leader‟s job to assist his/her followers in attaining their goals and to provide the direction or support needed to ensure that their goals are compatible with the overall objectives of the group or organisation Developed by robber House, Path-goal theory is a contingency model of leadership that takes key elements from the expectancy theory of motivation. 32

Managing Organisations and People – MGMT1001 House identified 4 types of leader: 1. Directive leader: lets subordinates know what is expected of them, schedules work to be done, and gives specific guidance as to how to accomplish tasks 2. Supportive leader: is friendly and shows concern for the needs of followers 3. Participative leaders: consults with group members and uses their suggestions before making a decision 4. Achievement-oriented leader: sets challenging goals and expect followers to perform at their highest levels CROSS-CULTURAL DIFFERENCES AND LEADERSHIP Universal elements of effective leadership: 

Vision



Foresight



Providing encouragement



Trustworthiness



Dynamism



Positiveness



Proactiveness

SUBSTITUTES FOR LEADERSHIP 

Follower characteristics o

Experience, training, professional orientation, or the need for independence



Job characteristics



Organisation characteristics

o o

Routine, unambiguous, and satisfying jobs Explicit formalised goals, rigid rules and procedures, or cohesive work groups

WEEK9: T9

CHAPTER 4 – STRATEGIC MANAGEMENT THE IMPORTANCE OF STRATEGIC MANAGEMENT WHAT IS STRATEGIC MANAGEMENT? Strategic management – is what managers do to develop the organisation‟s strategies 

The set of managerial decisions and actions that determines the long-run performance of an organisation



A process or approach to addressing the competitive challenges faced by an organisation



It can be thought of as managing the „pattern or plan that integrates an organisation‟s major goals, policies and action sequences into a cohesive whole‟

Strategies – the plans for how the organisation will do what it is in businesses to do, how it will complete successfully, and how it will attract and satisfy its customers in order to achieve its goals WHY IS STRATEGIC MANAGEMENT IMPORTANT? 

A strategy may lead to higher organisational performance



Organisations of all types and sizes face continually changing situations



Strategy helps coordinate diverse organisational units, helping them focus on organisational goals



Strategy development requires an examination of internal organisational characteristics and external environment changes 33

Managing Organisations and People – MGMT1001 STRATEGY-DECISIONS ABOUT COMPETITION Where to compete? 

In what market or markets (industries, products) will we compete?

How to compete? 

One what criterion or differentiating characteristics will we complete? Cost? Quality? Reliability? Delivery?

With what will we complete? 

What resources will allow us to beat our competition?



How will we acquire, develop and deploy those resources to complete?

LEVELS OF ORGANISATIONAL STRATEGY 

Corporate-level strategies o

Top management‟s overall plan for the entire organisation and its strategic business units

o

Strategies:

Growth strategies

Stability strategy

Renewal strategies

Seeking to increase the organisation‟s business by expansion into new products and markets

Strategy seeks to maintain the status quo to deal with the uncertainty of a dynamic environment or when the industry is experiencing little growth

Developing strategies to counter organisational weaknesses that are leading to performance declines



Internal growth strategies



External growth strategies

Types of growth strategies 

Concentration



Vertical integration



Horizontal integration



Related diversification



Unrelated diversification



Business-level strategy



Emergent strategies

Retrenchment: focusing of eliminating non-critical weaknesses and restoring strengths to overcome current performance problems Turnaround: addressing critical long-term performance problems through the use of strong cost elimination measures and large-scale organisational restructuring solutions

o

A strategy that seeks to determine how an organisation should compete in each of its strategic business units (SBUs)

o

Generic strategies: 

Cost leadership strategy: seeking to attain the lowest total overall costs relative to other industry competitors



Differentiation strategy: seeking to create a unique and distinctive product or service for which customers will pat a premium



Focus strategy: using a cost or differentiation advantage to exploit a particular market segment rather than a larger market

Functional-level strategy o

A strategy that seeks to determine how to support the business-level strategy

THE STRATEGIC MANAGEMENT PROCESS Strategic management process – a six-step process that encompasses strategic planning, implementation and evaluation STEP 1: IDENTIFYING THE ORGANISATION’S CURRENT MISSION, GOALS AND STRATEGIES Mission – a statement of the purpose of an organisation Goals – the foundation for further planning (what an organisation hopes to achieve in medium/long-term future) Components of a mission statement: 

Customers: who are the organisation‟s customers?



Products or services: what are the organisation‟s major products/services



Markets: where does the organisation compete geographically?



Technology: how technologically current is the organisation? 34

Managing Organisations and People – MGMT1001 

Concern for survival growth, and profitability: is the organisation committed to growth and financial stability?



Philosophy: what are the organisation‟s basic beliefs, values, aspirations, and ethical priorities?



Self-concept: what is the organisation‟s major competitive advantage and core competencies?



Concern for public image: how responsive is the organisation to societal and environmental concerns?



Concern for employees: does the organisation consider employees a valuable asset?

STEP 2: DOING AN EXTERNAL ANALYSIS The external environment is an important constraint on a manager‟s action. Analysing that environment is a critical step in the strategy process. In analysing the external environment, managers should examine both the specific and general environments to see what trends and changes are occurring After analysing the environment, managers need to pinpoint opportunities that the organisation can exploit, and threats that it must counteract or buffer against Opportunities – positive trends in the external environment Threats – negative trends in the external environment Components of the external environment 

Specific environment: external forces that have a direct and immediate impact on the organisation



General environment: broad economic, socio-cultural, legal, political, demographic, technological, and global conditions that may affect the organisation

STEP 3: DOING AN INTERNAL ANALYSIS The internal analysis provides important information about an organisation‟s specific resources and capabilities. Resources – an organisation‟s assets that are used to develop, manufacture and deliver products or services to its customers Capabilities – an organisation‟s skills and abilities in doing work activities needed in its business Core competencies – the organisation‟s major value-creating capabilities that determine its competitive weapons After completing the internal analysis, managers should be able to identify organisational strengths and weaknesses Strengths – any activities the organisation does well, or any unique resources that it has Weaknesses – activities the organisation does not do well, or resources it needs but does not possess SWOT analysis – an analysis of the organisation‟s strengths, weaknesses, opportunities and threats STEP 4: FORMULATING STRATEGIES Managers should consider the realities of the external environment and their available resources and capabilities, and design strategies that will help the organisation achieve its goals 

Develop and evaluate strategic alternatives



Select appropriate strategies for all levels in the organisation that provide relative advantage over competitors



Match organisational strengths to environmental opportunities



Correct weaknesses and guard against threats

STEP 5: IMPLEMENTING STRATEGIES Performance will suffer if the strategies are not implemented properly. More organisations are using teams, the ability to build and manage effective teams is an important part of implementing strategy STEP 6: EVALUATING RESULTS Managers need to evaluate results and take steps to adjust their strategies Where do organisational strengths come from? 

Core competencies o



Competitive advantage o



A specific factor that a business sees as being central to the way it or its employees, works An organisation‟s distinctive competitive edge that is sourced and sustained in its core competencies

Sustainable competitive advantage o

An ongoing ability to exploit resources and develop core competencies that allows an organisation to maintain a continual edge over its competitors 

Valuable



Rare 35

Managing Organisations and People – MGMT1001 

Imperfectly imitable



Non-substitutable

CHAPTER 5 – ORGANISATIONAL STRUCTURE AND DESIGN DEFINING ORGANISATIONAL STRUCTURE AND DESIGN Organising – arranging and structuring work to accomplish the organisation‟s goals 

When managers develop or change an organisational design

Organisational structure – the formal arrangement of jobs within an organisation 

The relatively stable and formal network of vertical and horizontal interconnections among jobs that constitute the organisation



Organisational structure changes inputs into outputs

Organisational design – developing and changing an organisation‟s structure 6 key design elements: WORK SPECIALISATION Work specialisation – dividing work activities into separate job tasks with each step completed by a different person Work specialisation makes efficient use of the diversity of skills that workers have. However, it can also result in monotonous and repetitive jobs  boredom, fatigue, stress, low productivity, poor quality, increased absenteeism and high turnover TODAY’S VIEW Most managers today continue to see work specialisation as an important organising mechanism because they recognise the economies it provides in certain types of jobs, but they also understand the problems it creates when it is carried to extremes DEPARTMENTALISATION Departmentalisation – the basis by which jobs are grouped together, according to functional similarity or similarity of work flow Forms of departmentalisation 

Functional departmentalisation – grouping jobs by functions performed



Product departmentalisation – grouping jobs by product line



Geographic departmentalisation – grouping jobs on the basis of geographical regions



Process departmentalisation – grouping jobs on the basis of product or customer flow



Customer departmentalisation – grouping jobs on the basis of specific and unique customers who have common needs

TODAY’S VIEW Most large organisations continue to use combinations of most or all of these types of departmentalisation. One popular departmentalisation trend is the increasing use of customer departmentalisation, because getting and keeping customers is essential for success, it emphasises monitoring and responding to changes in customers‟ needs. Cross-functional team – work teams composed of individuals from various functional specialities CHAIN OF COMMAND Chain of command – the line of authority extending from upper organisational levels to the lowest levels, which clarifies who reports to whom 3 important concepts: 

Authority – the rights inherent in a managerial position to tell people what to do and to expect them to do it



Responsibility – the obligation to perform any assigned duties



Unity of command – the management principle that each person should report to only one manager

TODAY’S VIEW These concepts are considerably less relevant today because of information technology and employee empowerment SPAN OF CONTROL Span of control – the number of employees a manager can efficiently and effectively manage The wider or larger the span of control, the more efficient an organisation is. TODAY’S VIEW The trend in recent years has been towards larger spans of control. Wider spans of control are consistent with managers‟ efforts to reduce costs, speed up decision making, increase flexibility, get closer to 36

Managing Organisations and People – MGMT1001 customers and empower employees. However, to ensure the performance does not suffer because of these wider spans, organisations are investing heavily in employee training CENTRALISATION AND DECENTRALISATION Centralisation – the degree to which decision making is concentrated at upper levels of the organisation Decentralisation – is the degree to which lower-level employees provide input or actually make decisions An organisation is never completely centralised or decentralised More centralisation

More decentralisation



Environment is stable



Environment is complex, uncertain



Lower-level managers are not as capable or experienced at making decisions as upperlevel managers



Lower-level managers are capable and experienced at making decisions



Lower-level managers do not want to have a say in decisions



Lowe-level managers want a voice in decisions

Decisions are significant



Decisions are relatively minor







Organisation is facing a crisis or the risk of company failure

Corporate culture is open to allowing managers to have a say in what happens

Company is large



Company is geographically dispersed

 

Effective implementation of company strategies depends on managers retaining a say over what happens



Effectives implementation of company strategies depends on managers having involvement and the flexibility to make decisions

TODAY’S VIEW As organisations become more flexible and responsive, there has been a distinct trend towards decentralisation decision making. Employee empowerment – giving employees more authority (power) to make decisions FORMALISATION Formalisation – how standardised an organisation‟s jobs are, and the extent to which employee behaviour is guided by rules and procedures TODAY’S VIEW Although some formalisation is important and necessary for consistency and control, many of today‟s organisations seen to be less reliant on strict rules and standardisation to guide and regulate employee behaviour ORGANISATIONAL DESIGN DECISIONS MECHANISTIC AND ORGANIC ORGANISATIONS Mechanistic organisation – an organisational design that is rigid and tightly controlled 

It is characterised by high specialisation, rigid departmentalisation, narrow spans of control, high formalisation and little participation in decision making by lower-level employees



Work specialisation creates jobs that are simple, routine and standardised.



Extensive departmentalisation increases impersonality and the need for multiple layers of management to coordinate these specialised departments



Strict adherence to the unity of command principle, to ensure the existence of a formal hierarchy of authority.



Narrow spans of control, esp. an increasingly higher levels of the organisations, have the effect of creating tall organisational structures with many layers and levels



Mechanistic organisation tends to be efficiency machines and rely heavily on rules, regulations, standardised tasks and similar controls. It tries to minimise the impact of differing personalities, human judgment and ambiguity because these are seen as inefficient and inconsistent

Organic organisation – an organisational design that is highly adaptive and flexible 

Flexible, which allows it to change rapidly as needs require 37

Managing Organisations and People – MGMT1001 

Specialised jobs, but these jobs are not standardised



Employees are highly trained and empowered to handle diverse job activities and problems



Employees require minimal formal rules and little direct supervision. Their high levels of skills and training, and support provided by other team members, make formalisation and tight managerial control unnecessary

CONTINGENCY FACTORS STRATEGY AND STRUCTURE An organisation‟s structure should help it achieve its goals, because goals are an important part of the organisation‟s strategies, it is only logical that strategy and structure should be closely linked. Most current strategy-structure frameworks tend to focus on 3 dimensions: 

Innovation, which reflects the organisation‟s pursuit of meaningful and unique innovation. Innovators need the flexibility and free flow of information of the organic structure



Cost minimisation, which reflects the organisation‟s pursuit of tightly controlled costs. Cost minimisers seek the efficiency, stability and tight controls of the mechanistic structure



Imitation, which reflects an organisation‟s seeking to minimise risk and maximise profit opportunities by copying the market leaders. Imitators use structural characteristics of both mechanistic (maintain tight controls and low costs) and organic structure (mimic the industry‟s innovative directions)

SIZE AND STRUCTURE An organisation‟s size significantly affects its structure. Firms change from organic to mechanistic organisations as they grow in size TECHNOLOGY AND STRUCTURE To reach an organisation‟s objectives, the organisation combines equipments, materials, knowledge and experienced individuals into certain types and patterns of activities. Firms adapt their structure to the technology they use Unit production – the production of items in units or small batches Mass production – the production of items in large batches Process production – the production of items in continuous processes ENVIRONMENT UNCERTAINTY AND STRUCTURE Dynamic environments require organic structure; mechanistic structures need stable environments

WEEK6: T6

CHAPTER 8 – MANAGING CHANGE AND INNOVATION The organisation environment is the set of forces and conditions, which affect the way the organisation operates Forces and conditions can be outside the organisation (external environment) or inside the organisation (organisational culture) General external environment:  Political  Economic  Social/demographic  Technological  Legal  Environmental Task/specific external environment:     What

Supplier – individuals and companies that provide the input resources needed to produce goods or services Distribution – organisations that help other organisations sell their good/service. These may be transport services, marketing and advertising, retailers Customer – the type of good or service you produce will impact on the type of relationship you have with you customers Competitors – produce similar goods/services to you organisation is culture?

Culture is patterns of development reflected in systems of knowledge, ideologies, values, laws and day-today rituals The essence of culture is inherently found in assumptions, ideals and beliefs 38

Managing Organisations and People – MGMT1001 Collective ‘manifestations’ – culture is „visible‟ via artefacts, customs, espoused values and forms of expression Organisational/corporate culture  Something an organisation has? o Unitarist/functionalist view – culture is acquired by employees, and is given to its members when they join, they do not participate in its formation  Something an organisation is? o Culture is organic (evolutionary), it is difficult to manipulate o An organisation doesn‟t have one dominant culture, rather organisations are composed of numerous subcultures, which may or not exist in harmony o “Managers can influence the evolution of culture, but they can never control culture”  Something an organisation does? o Reflects common view about „how things are done around here‟ or „the sum total of how an organisation accomplishes its purpose or mission‟ FORCES FOR CHANGE EXTERNAL FORCES  Marketplace  Governmental laws and regulations  Technology  Labour market  Economic changes TWO VIEWS OF THE CHANGE PROCESS

INTERNAL FACTORS  Changes in organisational strategy  Workforce changes  New equipment  Employee attitudes

THE CLAM WATER METAPHOR It is illustrated by Kurt Lewin‟s 3-step description of the change process. According to Lewin, successful change can be planned and requires unfreezing the status quo, changing to a new state, then refreezing to make the change permanent. Unfreezing can be achieved by: 

Increase the driving forces that direct behaviour away from the status quo



Decrease the restraining forces that hinder behaviour away from the status quo



Combine the 2 approaches

Once unfreezing has been accomplished, the change itself can be implemented. However, merely introducing change does not ensure that the change will take hold. The new situation needs to be refrozen so that is can be sustained over time. Unless this last step is done, there is a strong chance that the change will be short-lived as employees revert to the original equilibrium state

THE WHITE-WATER RAPIDS METAPHOR The lack of environmental stability and predictability requires that managers and organisations continually adapt (manage change actively) to survive MANAGING ORGANISATIONAL CHANGE WHAT IS ORGANISATIONAL CHANGE? Organisational change – any alternations in people, structure or technology of an organisation Characteristics of change: 

Is constant yet varies in degree and direction



Produces uncertainty yet is not completely unpredictable



Creates both threats and opportunities

Managing change is a central part of every manager‟s job Change agent – someone who acts as a catalyst and assumes the responsibility for managing the change process Change agents are from the outside; they offer an objective perspective that insiders may lack. However, they are usually at a disadvantage because they have a limited understanding of the organisation‟s history, culture, operating procedures and people As change agent, managers are motivated to initiate change because they are committed to improving the organisation‟s performance. Initiating change involves identifying what types of change might be needed and putting the change process on motion. Managers must manage employee resistance to change Types of change agents 39

Managing Organisations and People – MGMT1001 

Manager‟s internal entrepreneurs



Non-managers: change specialists



Outside consultants: change implementation experts

TYPES OF CHANGE CHANGING STRUCTURE Changing structure includes any alternation in reporting relationships, coordination mechanisms, degree of centralisation, job design or similar structural variables Changes in the external environment or in organisational strategies often lad to changes in the organisational structure An organisation‟s structure is defined in terms of work specialisation, departmentalisation, chain of command, span of control, centralisation and decentralisation, and formalisation, managers can alter one or more of these structural components Another option would be to introduce major changes in the actual structural design. By making such structural changes, the companies are able to respond more efficiently and effectively to rapid and uncertain changes in the marketplace CHANGING TECHNOLOGY Competitive factors, or innovations within an industry, often requires managers to introduce new equipments, tools or operating methods. 

Automation is a technological change that replaces certain tasks done by people with machines.



Expand Computerisation

CHANGING PEOPLE Changing people, i.e. changing attitudes, expectations, perceptions and behaviours MANAGING RESISTANCE TO CHANGE WHY PEOPLE RESIST CHANGE 

The ambiguity and uncertainty that change introduces



The comfort of old habits



A concern over personal loss of status, money, authority, friendship, and personal convenience



The perception that change is incompatible with the goals and interest of the organisation

USING FORCE-FIELD ANALYSIS Force-field analysis – a method proposing that twp sets of forces operate in any system – forces that operate for change (driving forces) and forces that operate against change (resisting forces). If the two sets of forces are equal in strength, then the system is in equilibrium Equilibrium is when the forces are balanced against each other. To make change, managers may to maximise driving forces and minimise resisting forces TECHNIQUES FOR REDUCING RESISTANCE EDUCATION AND COMMUNICATION

PARTICIPATION

FACILITATION AND SUPPORT NEGOTIATION



Communicate with employees to help them see the logic of change



Educate employees through one-on-one discussions, memos, group meetings or reports



Appropriate if source of resistance is either poor communication or misinformation



Must be mutual trust and credibility between managers and employees



Allows those who opposes a change to participate in the decision



Assumes that they have expertise to make meaningful contributions



Involvement can reduce resistance, obtain commitment to seeing change succeed, and increase quality of change decision



Provide supportive efforts such as employee counselling or therapy, new skills training, or short, paid leave of absence



Can be time-consuming and expensive



Exchange something of value to reduce resistance 40

Managing Organisations and People – MGMT1001 

May be necessary when resistance comes from a powerful source



Potentially high costs and likelihood of having to negotiate with other resisters



Manipulation is covert attempts to influence, such as twisting or distorting facts withholding damaging information, or creating false rumours



Co-optation is a form of manipulation and participation



Inexpensive and easy way to gain support of resisters



Can fail miserably if targets feel they have been tricked

SELECTING PEOPLE WHO ACCEPT CHANGE



Ability to easily accept and adapt to change is related to personality



Select people who are open to experience, take positive attitude towards change, are willing to take risks, and are flexible in their behaviour

COERCION



Using direct threats or force



Inexpensive and easy way to get support



May be illegal. Even legal coercion can be perceived as bulling

MANIPULATION AND COOPTATION

CONTEMPORARY ISSUES IN MANAGING CHANGE CHANGING ORGANISATIONAL CULTURES Cultures are naturally resistant to change Conditions that facilitate cultural change: 

The occurrence of a dramatic crisis



Leadership changing hands



A young, flexible and small organisation



A weak organisational culture

How can cultural change be accomplished? 

Set the tone through management behaviour; top manager, particularly, needs to be positive roles models



Create new stories, symbols and ritual to replace those currently in use



Select, promote and support employees who adopt the new values



To encourage acceptance of new values, change the reward system



Replace unwritten norms with clearly specified expectations



Shake up current subcultures through job transfers, job rotation and/or terminations



Work to get consensus through employee participation and creating a climate with a high level of trust

WEEK10: T10

CHAPTER 7 – HUMAN RESOURCE MANAGEMENT Where do organisational strengths come from? 

Core competencies o



Competitive advantage o



A specific factor that a business sees as being central to the way it or its employees, works An organisation‟s distinctive competitive edge that is sourced and sustained in its core competencies

Sustainable competitive advantage o

An ongoing ability to exploit resources and develop core competencies that allows an organisation to maintain a continual edge over its competitors 

Valuable



Rare



Imperfectly imitable



Non-substitutable

Sources of competitive advantage: 



Growing recognition: o

Traditional sources of competitive advantage are eroding

o

Specific products and technology can be copied by competitors

But a cohesive, skilled workforce and appropriate organisational culture cannot be easily replicated by competitors

WHY IS HR MANAGEMENT IMPORTANT? 

It can be a significant source of competitive advantage 41

Managing Organisations and People – MGMT1001 

HRM is an important par of organisational strategies. Achieving competitive success through people means managers must change how they think about their employees and how they view the work relationship. They must work with people and treat them as partners



The way organisations treat their people has been found to significantly affect organisational performance.



HRM is an important tool in implementing strategy



Necessary part of the organising function of management o



Legal compliance o



Selecting, training and evaluating the work force Laws governing the employment relationship

Adds value to the firm o

High performance work practise lead to both high individual and high organisational performance

High-performance work practices – work practices that lead both to high individual and high organisational performance 

Self-managed teams



Decentralised decision making



Training programs to develop knowledge, skills and abilities



Flexible job assignments



Open communication



Performance-based compensation



Staffing based on person-job and person-organisation fir



Extensive employee involvement

THE HUMAN RESOURCE MANAGEMENT PROCESS HRM – the policies, practices and systems that influence employee‟ behaviour, attitudes and performance HRM process – activities necessary for staffing the organisation and sustaining high employee performance

42

Managing Organisations and People – MGMT1001

JOB ANALYSIS AND DESIGN 

HR inventory o





Job analysis o

An assessment that defines a job and the behaviours necessary to perform the job (knowledge, skills and abilities)

o

Requires conducting interviews, engaging in direct observation, and collecting the selfreports of employees and their managers

Job description o



A review of the current make-up of the organisation‟s human resources

A written statement of what the job holder does, hot it is done, and why it is done

Job specification o

A written statement of the minimum qualifications that a person must possess to perform a given job successfully

RECRUITMENT Recruitment – the process of locating, identifying and attracting capable applicants to an organisation 

Any practice or activity carried on by the organisation with the primary purpose of identifying and attracting potential employees

Aims of recruitment 

Increase the pool of qualified job applicants



Reduce the number of under or over-qualified job applicants



Increase the probability that job applicants once recruited and selected, will remain with the organisation for a long period of time



Meet EEO and other legal and social obligations

Recruitment sources 



Internal sources o

Skills inventory (computerised record systems)

o

Job posting via bulletin boards (electronic or intranet), newsletters or personal letters

External sources o

Advertising

o

Employment agencies

o

Educational institutions

o

Employee referrals

o

Unsolicited applications

o

Professional associations

43

Managing Organisations and People – MGMT1001

Decruitment – techniques for reducing the labour supply within an organisation Decruitment options 

Resignation – permanent voluntary termination of employment



Dismissal – permanent involuntary termination of employment



Redundancy/retrenchment – when a job is no longer required by the organisation on operational grounds (and due to no fault of the employee), it results in redundancy; this may lead to the employee being retrenched, which result in dismissal



Redevelopment/transfer – another way of handling a situation when a job becomes redundant is the redeploy or transfer the employee laterally or downward; usually this does not reduce costs, but it can reduce intra-organisational supply-demand imbalances



Lay-off – temporary involuntary termination; may last a few days or extend to years



Attrition – not filling openings created by voluntary resignations or normal retirements



Reduced work-week – having employees work fewer hours per week, share jobs, or perform their job on a part-time basis



Early retirement – providing incentives to older and more senior employees to retire before their normal retirement date



Job sharing – having employees share one full-time position

SELECTION Selection – the process of screening job applicants to ensure that the most appropriate candidates are hired Selection method standards: 

Reliability (of prediction) – the ability of a selection device to measure the same thing consistently



Validity (or prediction) – the proven relationship that exists between a selection device and some relevant job criterion



Generalisability



Utility



Legality

Selection decision outcomes

Selection devices Application forms



Almost universally used



Most useful for gather information 44

Managing Organisations and People – MGMT1001 

Can predict job performance but not easy to create one that does



Must be job related



Include intelligence, aptitude, ability, personality and interest tests



Relatively good predictor for supervisory positions



Use actual job behaviours



Work sampling – test applicants on tasks associated with that job; appropriate for routine and standardised work



Assessment centre – simulate jobs; appropriate for evaluation managerial potential



Almost universally used



Must know what can and cannot be asked



Subject to potential biases, esp. if interviews are not well planned and structured

Background investigations



Used for verifying application data – valuable source of information



Used for verifying reference checks – not a valuable source of information

Physical examinations



Are for jobs that have certain physical requirements



Mostly used for insurance purposes

Written tests

Performancesimulation tests

Interviews

Selection criteria 1. Application forms 2. Interviews 3. Occupational ability/psychometric testing 4. Interviews 5. Assessment centre/social get together 6. Physical examinations/physical ability tests 7. Reference/background checks EMPLOYEE LEARNING AND DEVELOPMENT 

Training



Presentation methods

o o 





Classroom instruction, audiovisual methods

Group-building methods o



A planned effort by a company to facilitate employees‟ learning of job-related competencies

Adventure learning, team building

Hands-on methods o

On-the-job training

o

Simulations and activities

o

Case studies

o

Behaviours modelling

What odes effective training do? o

Affective outcomes

o

Cognitive outcomes

o

Skill-based outcomes

o

Results

o

Return on investment

Purposes of training and development o

Improve performance

o

Update employee skills solve organisational problems

o

Orient new employees

o

Satisfy personal growth needs

PERFORMANCE MANAGEMENT 45

Managing Organisations and People – MGMT1001 Performance management system – establishing performance standards and appraising employee performance in order to arrive at objective HR decisions and to provide documentation in support of those decisions 

Ensuring that employees‟ activities and outputs are aligned with the organisation‟s goals

Performance appraisal – obtaining data on how well an employee is doing his/her job Performance appraisal methods: 

Written essay – a performance appraisal technique in which an evaluator writes out a description of an employee‟s strengths and weaknesses, past performance and potential



Critical incident – a performance appraisal technique in which the evaluator focuses on the critical behaviours that separate effective form ineffective job performance



Graphic rating scale - a performance appraisal technique in which an employee is rated using a rating scale on a set of performance factors



Behaviourally anchored rating scales (BARS) - a performance appraisal technique that appraises an employee using a rating scale on examples of actual job behaviour



Multi-person comparison – performance appraisal techniques that compare one individual‟s performance with that of others



360-degree appraisal – a performance appraisal method that utilises feedback from supervisors, employees and co-workers

Performance feedback – providing data to employees about their performance effectiveness COMPENSATION AND BENEFITS Benefit of a fair, effective and appropriate compensation system 

Helps attract and retain high-performance employees



Impacts on the strategic performance of the firm

Types of compensation 

Base wage or salary



Wage and salary add-ons



Performance related pay o

Merit pay

o

Incentive pay

o

Profit sharing

o

Ownership

o

Group incentives/awards

46