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Lecture Notes Lectures 1 11
Lecture Notes Lectures 1 11
Lecture Notes Lectures 1 11
Organisations
- Organisation: deliberate arrangement of people brought together to
accomplish a specific purpose.
- 3 Characteristics of organisations
- The operation system creates value by transforming inputs into finished goods
and services.
INPUTS OUTPUTS
- People - Goods
- Technology TRANSFORMATION - Services
- Capital PROCESS
- Equipment
- Materials
- Information
* Note: Non managerial employees do their own work, managers are responsible for
others.
Top
Managers Top Managers: Make decisions about the direction of org.
Middle Eg: president, chief executive officer, vice president
Managers Middle managers: Manage the activities of other managers
Eg: district manager, division manager
First-line Managers First-line Managers : responsible for directing non-
managerial employees
Non-managerial Employees Eg: supervisor, team leader
What is management?
Management: process of getting things done effectively and efficiently with and
through other people
Process: set of ongoing and interrelated activities required to achieve an outcome.
Primary activities of functions that managers perform
Effectiveness: Doing the right things
Efficiency: getting the most output from the least amount of inputs (people, money
and equipment).
*Goal-Low waste, high attainment
Functions approach
-PLANNING : define org purpose and how to achieve it
-ORGANISING : arranging and structuring work to accomplish org goals
-LEADING: directing work activities of others whilst motivating and using effective
communication.
-CONTROLLING: monitoring, comparing & correcting work performance,
Roles approach
(HENRY MINTZBERG)
• INTERPERSONAL ROLE: involve people
- Figurehead- symbolic head performing legal/social duties.
Eg: signing legal docs, greeting visitors
- Leader- responsible for motivation of subordinates, training and staffing.
Eg: performing all activities
- Liaison – maintain network of people who provide favours and information
Eg: acknowledge mail
1)Level in organisation
Top managers do more planning than supervisors & first level mangers to more
leading. (In terms of PLOC)
2)Size of organisation
Small businesses (5-19) – emphasis on spokesperson
Medium (20-199)
Large (200+) – managers mostly resource allocators.
4) National boarders
Concepts need to be modified in other global environments.
Studying management helps in deciding which approaches are most useful and
appropriate to a businesses needs.
Anthropology : helps managers understand differences in fundamental values,
attitudes and behaviours within orgs and diff countries.
Economics: understand economy
Philosophy: values and ethics, legitimate authority and linking rewards to
performance
Political science: conflict and power
Psychology: motivation, leadership, trust, employee selection
Sociology: how social changes alter future markets
• (1911) Frederick Taylor Scientific management - determine the ONE best way to do a job.
• (1916-1947) Henri Fayol & Max Weber --> general administrative theory
CLASSICAL
• Rules and principles were developed that would be taught and used in a variety of settings
APPROACH
• Boost productivity recognising the needs of workers beyond pay (physically and mentally) Eg: meal breaks, rest breaks
BEHAVIOURAL
• Mary Follett - Power with rather than power over
APPROACH
2) Environmental complexity
Determined by the number of external factors affecting the organisation
Simple environment: affected by few factors
Complex environment: influenced by many factors
3) Resource availability
How abundant are critical resources in an organisations external environment
Abundant resources: plenty of resources
Scarce resources: few resources
General environment
Global organisation
An org is considered global if it:
Exchanges goods and services with consumers in other countries
Uses managerial and technical employee talent from other countries
Uses financial sources and resources outside their home (financial
globalisation
Eg: Avon, McDonalds, Law enforcement, medical services
Specific organisation
Specific organisation: the stakeholders of the business, that is, anyone who affects or is affected by the
achievement of the organisations objectives.
Factors in the specific environment have a direct and immediate effect on operations and performance
CUSTOMERS Def: people and orgs that acquire goods/services from the org for exchange for
money.
They influence product:
- type,
- quality
- prices
COMPEITTORS Def: individuals or orgs within the same industry whom it competes for
resources with.
Offer substitutes that customers see as providing the same value.
They influence:
- Products and prices
- Costs and availability of supplies
- Access to distribution channels
- Profitability
SUPPLIERS Def: companies and individuals who provide the organisation with input
Input: material, physical, human, financial, informational resources and business
services.
Determine input:
- quality
- availability
- cost
Influence:
- product and service quality & production capacity
- competitiveness
- profitability
Supplier dependence: the extent orgs rely on a particular supplier. Input
importance & supplier availability. (^ input importance=^dependence)
High supply dependence = suppliers can set their own business terms.
EMPLOYEES, Employees: individuals who labour on behalf of the org in exchange for
UNIONS, payment.
LABOUR They provide knowledge, skills, effort and creativity.
MARKETS Labour market/supply: pool of people employable by the organisation
Unions: employee associations whom negotiate pay and conditions with
employers and have the ability to take industrial action on behalf of members.
Eg: strikes, court, work stoppages
STRATEGIC Def: orgs that work together for a mutual benefit
PARTNERS Opportunities:
- Combine resources & ideas
- Spread risk
- Learn from each other
Threats:
Organisational culture: the shared values, principles traditions and ways of doing
things that influence the way organisational members act.
Culture is:
- perceived
- descriptive
- shared
Managerial actions
The following are actions designed better employee competencies and
willingness to solve a customer problem if it arises.
Organising : flatter
organisational structure
Training: training programs for new and existing
giving employees more
employees to improve product knowledge
controlin service
encounter
Managers are faced with determining how their organisation ‘fits’ with its
environment.
Society develops rules and regulations about how businesses should be
transacted and managed.,
Activities include fair prices, high quality products and services, safe products,
promoting social justice, preserving the environment and supporting social
and cultural activities.
FOR AGAINST
Public expectations – Violation of profit
supporting business maximisation
Long-run profits * Costs
Discouragement of further Too much power – social goals
governmental regulation give them more power
Stockholder interest Lack of skills
_______________________________________________________________
ECOLOGICALLY SUSTAIABLE MANAGEMENT
Green actions
_______________________________________
Managerial Ethics
Managerial ethics
Help us decide what is ‘right’ or ‘wrong’ in social context
Absolutists: absolute right and wrongs
Relativists: ethical positions depend on circumstances, culture and
consequences of action.
Influenced exclusively by
personal interest.
1. PRECONVENTIONAL
Influenced by the
2. CONVENTIONAL
expectations/obligations of
others.
Influenced by personal
3. PRINCIPLED
ethical principles of what
is right.
1)Individual
characteristics
4) Organisational 2) Structural
culture MODERATORS variables
3) Issue intensity
1) Individual characteristics
Personal values: basic convictions about what is right and wrong
Ego strength: personality measure of persons convictions. Individuals
with high ego strength are more likely to do what they believe is right.
Locus of control: personality attribute that reflects the degree to which
people believe they control their own fate.
Internal (believe they control own destinies)
External (believe what happens to them is luck or chance)
2) Structural variables
- performance appraisal system
- rules and regulations … (consider social media)
- rewards system
- time pressures
- cost constraints
- competitive pressures
3) Organisational culture
An organisational culture most likely to shape high ethical standards is
one that is high in risk tolerance, control and conflict tolerance.
Employees encouraged to be aware that unethical practices will be
discovered and feel free to openly challenge unrealistic expectations.
Value based management: organisations values guide employees in the
way they do their jobs. The purposes:
guide decision making
shape employee behaviour
influence marketing efforts
build team spirit
4) Issue Intensity
Concentration of effect: how many people are affected?
Eg: something that puts 100 people out of work is more harmful than affecting
10.
Consensus of evil: belief that this is good or bad
Eg: shoplifting
Probability of harm: will it affect people? Psych harm?
Eg: selling a gun to a known armed robber
Immediacy of consequences : is there immediate harm or will the
consequences occur much later?
Eg: James Hardie asbestos
Proximity to victim : not in my backyard (overseas rather) so don’t care
Eg: plastic affecting wildlife
Magnitude of consequences : degree of harm
Ethics training
What is planning?
Often called ‘primary management function’ as it establishes basis for all
managerial activities.
Concerned with ends (what is to be done) and means (how its to be done)
________________________________________________________________
STRATEGIC MANAGEMENT
Setting Goals
Real Goals: pursued goals
Traditional goal setting: goals set by top managers flow down the org and
become sub-goals
Types of Plans
Describe plans in terms of
Breadth
Strategic Plans: apply to entire org, encompassing overall goals
Tactical Plans: specify the details of how the overall goals are to be
achieved
Time frame
Long-term Plans: > 3yrs
Short Term Plans: <1yr
Specificity
Specific Plans: clearly defined and leave no room for interpretation
Directional Plans: flexible plans with general guidelines set
Frequency of use
Single use Plan: one time plan for unique situation
Standing Plans ongoing plans for repeated activities
Alternative Approach
Actively involve org members, giving them access to all relevant info.
Decision Implementation: Conveying the decision to those affected and getting their
commitment to it. If employees are unhappy with the decision , they may choose to
resist it.
Subconscious
mental
processing
Cognitive
based Five Values of
Ethics Based
Aspects
decisions Decisions
of
intuition
Affect- Experience of
Initiated Ethics Based
decisions Decisions
Group decisions
Advantages Disadvantages
- more complete info - time consuming
- generate more alternatives - no one is responsible
- increases legitimacy - pressure to conform
- diversity of experience is higher. - groupthink: get small group of
homogenous backgrounds. (lack of
diversity of opinion or innovation)
Effectiveness
Effective for decisions that require
- Accuracy
- Speed
- Creativity
- Acceptance
Organic – less rigid and stable than an mechanistic org. Allows it to change
rapidly.
few rules
Adaptable duties
Flatter structures
decentralised
communication more open
collaboration
Simple structure:
AD Flexible inexpensive to maintain, accountability is clear
DIS Everything may depend on one or two people
eg: Fair Work Act 2009 (employment conditions), Equal Employment Opportunity
1987 ( equity)
Employment Planning: process whereby managers ensure they have the right
numbers and kinds of people in the right places at the right time.
- Mission and goals are translated into HR terms to enable fulfilment of these
terms.
- Two steps are: (1) Assess current and future HR needs
(2) Develop a plan to meet these needs
Employee assessment
- Job Analysis: defines jobs and behaviours required to perform them
- Job Description: A written statement that describes a job
- Job Specification: written statements of the minimum qualifications an individual
must possess to perform a given job successfully.
PERFORMANCE
INTERVIEWS *
STIMULATION TESTS
Retention technique:
Realistic Job Preview (RJP) : job preview providing positive and negative information
about job and company
EMPLOYEE PERFORMANCE
Compensating employees
- Compensation administration: determining a cost-effective pay
structure that will attract and retain employees with incentives to
motivate
- Skill-based pay: pay system that rewards skills demonstrated.
- Variable pay: pay system dependent on performance
- Employee benefits : non financial rewards designed to enrich employees
lives.
* Factors that affect the level of compensation include: size of company, type of
business/ job, geographic location, management philosophy, company
profitability.
CONTEMPORARY HRM ISSUES FACING MANAGERS
INTERNAL EXTERNAL
Strategy Marketplace
Workforce composition Eg TV internet access b/c of how the
Eg: age, gender, education, marketplace watches stuff
nationality Technology
Employee attitude Eg: assembly line undergone changes,
replacing human labour for
mechanical robots
Government Laws & Regulations
Eg introducing GST
Economy
Eg economic lifecycles-
income/spending, job opportunities
Labour markets
Eg skill shortages prompt raising
retirement age.
Change metaphors
1. Calm waters metaphor of change: likens organisational change to a large
ship making a predictable trip across a calm sea and experiencing an
occasional storm.
2. White-water rapids metaphor of change: likens organisational change to a
small raft navigating a raging river.
OD activities
Survey feedback: used to assess employee attitudes towards change
Process consultation: using outside consultants to assess organisational
processes such as workflow, informal intra-unit relationships & formal
communication channels
Team building: using activities to help work groups set goals & develop
interpersonal relationships. Help clarify roles and responsibilities of team
members.
Intergroup development: activities that attempt to make several groups
work more cohesive.
RESTISTANCE TO CHANGE
STRESS
Stress : The adverse reaction people have to excessive pressure placed on
them from extraordinary demands, constraints or opportunities
Symptoms of stress
Physical symptoms :
- change in metabolism
- increased heart rate
- headaches
- high bp
Psychological
- job related dissatisfaction
- tension
- anxiety
- irritability
- boredom
- procrastination
Behavioural
- Absenteeism
- Job turnover
- Sleeping disorders
- ^ smoking or alcohol consumption
Stressors
Stressors: factors that cause stress
1. FORMING: first stage whereby people join and define group purpose,
structure and leadership.
5. ADJOURNING: (when groups are disbanded) Not all groups have this final
stage (if they haven’t made it though each stage
Elements of motivation:
- Energy: measure of intensity or drive
- Direction: effort channelled in a direction that benefits the organisation
- Persistence: when employees persist to achieve goals
Active Listening
Active listening: listening for full meaning without making premature judgements or
interpretations
Feedback
Positive feedback: more readily and accurately perceived then negative
feedback
Negative feedback: more likely to be accepted when it comes from a credible
source or if its objective
Tips for effective feedback: focus n specific behaviours, keep feedback goal oriented
and impersonal
Delegation
Assigning authority to another person to carry out specific activities
In participative decision making authority- authority is shared
Contingency factors in delegation include:
- size of the organisation
- task complexity
- organisation culture
- qualities of employees
- importance of the duty or decision
Negotiation
Negotiation: a process where 2 or more parties (who have different
preferences) must make a joint decision and come to an agreement.
Distributive bargaining: under zero-sum conditions in which any gain that
you make is at the expense of the other person.
Integrative bargaining: negotiation where there is at least one settlement that
involves no loss to either party. Facilitates working together in the future.
CONFLICT MANAGEMENT
Conflict: perceived differences resulting in interference or opposition
Functional conflicts conflict that's constructive and supports an organisation’s
goals
Dysfunctional conflicts: conflict that's destructive and prevents an
organisation from achieving its goals.
Traditional vies of conflict : view that all conflict is bad and must be avoided
Human relations view of conflict : view that conflict is natural and inevitable
and has the potential to be a positive force
Interactionist view of conflict: view that some conflict is necessary for an
organisation to perform effectively.
~ LEADERSHIP/ TRUST ~
Leader : someone who can influence others who has managerial authority
Leadership: process of leading a group and influencing that
Drive Intelligence
Desire Job relevant knowledge
Honesty
LEADER-MEMBER
RELATIONS:
Degree of
confidence, trust &
respect employees
had for their leader
OTHER MODELS/THEORIES
Leader participation model : based on a set of rules for determining how much
participation a leader uses in decision making.
Path Goal Theory : says that a leaders job is to assist followers in attaining their
goals and to provide direction/ support.
- Environmental factors : task structure, work group
- Outcomes : performance, satisfaction
- Employee contingency factors: locus of control, experience, perceived ability,
- Leader behaviour: directive, supportive, participate