Todays Objectives

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Todays Objectives

• Learn about ways of describing organizations and
  managerial work
• Review historical trends in the study of
  organizational behavior
• Discuss some important environmental factors that
  impact organizational behavior
• Globalization
• Social Responsibility and Ethics

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Common Characteristics of Organizations
Structure
People
Goals
l
B
A
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The Levels of an Organization
Supervise Others
Top Managers
Middle Managers
First-Line Managers
Work on Jobs
Operative Employees
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How Do We Define Management?
Means Efficiency
Ends Effectiveness
Goals
Goal Attainment
Low Waste
High Attainment
Resource Usage
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Essential Functions of managers

• Planning The establishment of general strategies
  and objectives that impact the creation of
  structure and guide the actions of people (e.g.
  focus their attention)
• OrganizingThe arrangement or relationships
  between people and groups
• LeadingThe act of influencing others (through
  the use of power), interpersonal influence
• ControllingThe acts of monitoring performance
  and adherence to processes and procedures

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The Roles of Management The Mintzberg Studies
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The Roles That Managers Play
Importance
Small Firms
Large Firms
Spokesperson
Resource Allocator
High
Liaison, Monitor Disturbance Handler Negotiator
Entrepreneur Figurehead Leader
Moderate
Disseminator
Low
Entrepreneur
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Interpersonal
Conceptual
General Management Skills
Technical
Political
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Technology Management

• People really need to be skilled on business
  needs as well as the technology. They have to be
  able to answer, If this system happens this way
  here, how does it affect projects over there?
• The technical expertise is given there are
  lots of good people who do that but not many of
  those can interface with the people who need to
  know how it can make business move.
• Technology Management is searching for the
  person who has the technical background in his or
  her head but also knows how it will affect
  business AND can sell useful new ideas to upper
  management.

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The 9/11 Commission Report

• How would you describe what they are saying in
  relation to the three characteristics of an
  organization (goals, structure, people). Which
  part(s) are they suggesting be changed?
• Which management functions (e.g. planning,
  organizing, leading, controlling) do you think
  are most relevant to their Report and
  recommendations?

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Management Competencies
Management Charter Initiative (MCI)

• Initiate and implement change and improvement
• Monitor, maintain, and improve delivery
• Monitor and control the use of resources
• Allocate resources effectively
• Recruit and select personnel

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Management Competencies
Management Charter Initiative (MCI)

• Develop teams, individuals, and self
• Plan, allocate, and evaluate work
• Create, maintain, and enhance relationships
• Seek, evaluate, and organize information
• Exchange business information

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Perspectives on Organizational Behavior

• Scientific Management (mechanistic)
• Administrative (bureaucratic)
• Human Resources/Human Relations (humanistic)
• Systems and Contingency Perspectives

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You Be the Consultant

• How should I organize my workforce?
• How should I structure individual jobs?
• What should I do to motivate my workforce?
• How will I know people are doing a good job?
• What should be the main roles and
  responsibilities of my managers?

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Scientific Management

• Frederick Taylor (1911) - The use of the
  scientific method to define the one best way
  for a job to be done
• Stresses cooperation but based upon clear
  division of labor
• Careful study of jobs to develop standard
  procedures
• Scientific selection
• Mgt and worker cooperation derived standard
  procedures
• Clear division between management and labor
• Frank Gilbreth and Henry Gantt

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Administrative perspective

• Focus on the broader structure of an organization
  and the relationship between its parts
• Max Weber (1922)
• bureaucracy - an org. characterized by division
  of labor, clearly defined hierarchy, detailed
  rules and regulations, impersonal relationships,
  legally derived (rational) authority
• Henri Fayol (1919)
• Functions of management (planning, controlling,
  commanding, coordinating and organizing)
• Division of Labor
• Authority and responsibility
• Centralization
• Delegation of authority
• Unity of command
• Unity of direction

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Human Relations Perspective

• Focus on the people and social systems that exist
  within the workplace (dynamic)
• Chester Barnard (1935) Orgs. are systems of
  consciously coordinated activities by two or
  more
• systems of cooperative action
• Their success depends upon an appropriate balance
  between inducements and contributions
• Motivational challenge for managers is
• First, participation and then performance
• Follett-Parker (1925)
• Power Over versus Power With
• Constructive Conflict and Integration
• Dominance
• Compromise
• Integration
• Hawthorne Studies (1939)
• Interactions between people
• Experimental Controls
• McGregors Theory X and Theory Y (1960)

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Quantitative Approach

• The use of statistical data and other precise
  measures to make decisions and to guide direct
  and optimize work
• Outgrowth of mathematical and statistical
  techniques used to increase production during
  WWII
• McNamara and Thornton
• Six Sigma, TQM, Operation Research, Computer
  simulations, linear programming, critical path
  analyses.

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Film Clip Questions

• What ideas are depicted from
• Scientific mgt.
• Administrative Perspectives
• Human Relations Perspectives

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Strategic Approaches

• Peter Drucker (1950-1990s) Effective
  governance requires
• Strong and independent board of directors
• Integrity must be central to a managers
  character
• Strategy is built around long-terms goals and
  realistic assessments of environment
• Use clear objectives to link levels of
  performance (MB0)
• Self-control management (active participations at
  all levels in goal setting and in monitoring
  performance relative to goals)

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Strategic Challenges

• Org strategy like org behavior begins by
  considering the broader environment /context
• Strategic Challanges for 21st Century noted by
  Drucker and others (Druckers New Certainties)
• Declining birth rates in developed countries
• Global competition and increased importance of
  world versu local markets
• Greater needs for decentralized organization due
  to more uncertain environment
• Change will be the one thing we can count on,
  needs to be seen as opportunity

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Systems perspective

• Open system - An entity that interacts with an
  environment so that it receives inputs, produces
  outputs, and adapts internal structures and
  processes to the environment.
• System data includes
• behavior
• patterns and frequency of contact
• role behavior and interdependence
• structure and process of decision-making/problem-s
  olving
• organizational structure
• ways in which planned changes are/are not
  executed
• attitudes and perceptions

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Contingency Perspective

• No one best way It depends
• No single theoretical perspective, can be
  universally applied to all organizations.
• Some key variables
• size
• routineness of task technology
• environmental uncertainty
• individual differences

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Contingency Perspective

• Differentiation - to cope with their external
  environments organizations must develop segmented
  units.
• Integration - to reap the benefits of effective
  transactions with the environment, there must be
  collaboration across segmented units

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The Global Marketplace
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Stages of Going Global
Stage I
Stage II
Stage III
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Globalization and thePractice of Management
Ethnocentrism
Parochialism
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(No Transcript)
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Arguments forSocial Responsibility

• Public expectations
• Long-run profits
• Ethical obligations
• Public relations image
• Better environment

• Fewer government regulations
• Balance of responsibility and power
• Stockholder interests
• Possession of resources
• Prevention versus cures

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Arguments Against Social Responsibility

• Violation of profit maximization
• Dilution of purpose
• Costs outweigh benefits
• Too much power
• Lack of skills
• Lack of accountability
• Lack of broad public support

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Social Responsibility
Social Involvement in Business
Social Obligation
Social Responsiveness
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The Question of Ethics
Rights View
Utilitarian View
Theory of Justice View
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Values Two main types

• Instrumental values the means and modes of
  conduct
• Ambitious
• Hard-working
• Honesty
• Capable
• Being polite
• cleanliness
• Responsibility
• Forgiving
• Kindness
• Imaginative
• Logical
• Obedient
• polite

• Terminal values ends or desirable goals
• Comfortable life
• A world at peace
• Self-respect /esteem
• True friendship
• Happiness
• Pleasure
• Salvation
• Freedom
• Sense of accomplishment
• National security
• Equality
• An exciting life
• Social recognition
• Mature love

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Values Maturity (Kohlbergs Model) Instrumental
values are associated with levels of moral
maturity or values development which change as we
age and mature

• Whats right is based upon
• 1) Punishment obedience
• 2) Instrumental purpose and exchange
• 3) interpersonal expectations the golden rule
• 4) doing ones duty to society
• 5) Prior rights, values and contracts in society
  - moral behavior is freely chosen, not imposed
• 6) Universal ethical principles when laws
  violate those principles they are ignored

• Self-centered level Values and moral judgment are
  based on needs, wants and the consequences of an
  act
• Conformity level Values and moral judgment are
  based on conformity to expectations and
  conventions
• Principled level Values and moral judgment are
  based on Internalized set of principles

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Defining Issues Test

• 1. Consider only the four statements you ranked
  as most important
• 2. Identify the stage each statement represents
  (e.g. in escaped prisoner story statement 31 is a
  stage 3 response)
• 3. Reverse the points associated with each
  ranking (e.g item ranked 1 gets 4 points)
• 4. Create a story by stage matrix and record
  points for each stage within a story.
• 5. Total the points for each stage and multiply
  the totals points for each stage by 2.3 (scores
  on next slide are based upon 7 stories)

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Defining Issues Test Comparison Data
PERCENTAGE SCORING IN THIS STAGE 6.98 18.08
31.00 28.40 6.37 4.53 4.63
LEVEL 2 3 4 5 6 A M
SOURCE Davidson, M. and Robbins, S. (1978) The
Reliability and validity of objective indices of
moral development. Applied Psychological
Measurement, 2391-403.
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Mgt 111 Assessment Site Complete the following
Assessments

• http//www.stevens.edu/mgt111/
• Self Awareness
• Self Monitoring
• Locus of Control
• Tolerance for Ambiguity
• Interpersonal Relations
• Remember to print out your Results and bring with
  you to class