Presentation on theme: "Please make sure to bring all the lecture notes"— Presentation transcript:
1 Please make sure to bring all the lecture notes (up to week 10) – as I will be summarizing all the notes today
2 LECTURE 10 Amare Michael Desta Decision Support & Executive Information Systems:LECTURE 10 Amare Michael Desta
3 Many different perspectives Organizational Leadership, Cultures and Process Maturity Closed System View of Org.:Many different perspectives- Closed system perspectiveOrganization as instrument to achieve defined goalsEfficiencyEffectivenessFlexibility / adaptabilityJob satisfaction- Four activities follow from the aboveComplexity and specialization of tasksCentralization of authorityFormalization of jobsStratification of employment levels
4 Closed System View - Criticism View sees humans as machinesResources are optimisedNot true in all casesResponses fit into the defined planEnvironmental influence seen as only noise
5 Open System View of Organizations Interested in both the objectives and responses to internal and external influencesOrganizational activities (Weick)Enactment, selection and retentionResults of these areUnderstanding of the environmentRecognizing problemsDiagnosing causes for problemsIdentifying policies to solve problemsEvaluating the efficiency of the policiesSelecting priorities for problem solving
6 Organizational Learning Model (Daft & Weick) Three major components- ScanningMonitoring the environment- InterpretationTranslating observations- LearningKnowledge about relations between organization’s state and environmentActions
7 Generic Roles for Executives To achieve the defined goals FOUR differentRoles are needed by executives- AdministrationCaretaking roleManagementConcerned with efficiencyLeadershipSetting of a vision and seeing it throughGovernanceStakeholder management
8 Organizational Topographies Inactive organizationTries to avoid problemsWaits them to go awayReactive organizationProblem solving organizationInternal environmentInteractive organizationTries to adapt to external environmentDevelopment of responses to external environmentProactive organizationLearning to learn betterAdaptive behaviour
9 Organizational Learning Organizational learning is needed to anticipate changes and improve behaviourSituation assessmentProblem detectionSolutionEvaluation of outcomeResulting discoveryThe learning is not always beneficial in practiceE.g. improperly simplified causal models
10 Theory of Reasoning, Learning and Action Two major inhibitions to learning1) Distortion of informationQuality of decisions affected2) Lack of receptivity to feedbackTypes of organizational learningSingle-loopPresent policies to achieve present goalsNo questioning of goalsDouble-loopNew understanding developedGoals are put under scrutinyPoor performance organizations usually use single-loop learning
11 Theory of Reasoning, Learning and Action (2) There are other inhibitions to learningDistancingNot accepting responsibilityDisconnectednessLimited information about theories in use and the associated actionsFive dilemmasIncongruityInconsistencyIneffectivenessDisusabilityUnobservability
12 Learning Organization “Organization where people continually expand their capacity to create results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning how to learn together” (Peter Senge)Five disciplines enable this learningSystems thinkingPersonal mastery through lifelong learningShared mental models of markets and competitorsShared visionTeam learningLack of capability in one of the five disciplines is called a learning disability
13 11 Laws of Systems Thinking Future problems come about because of what were presumed past solutionsEvery action has a reactionShort-term improvements lead to long-term difficultiesEasy solution is no solution at allSolution may be worse than the problemQuick solutions lead to more problemsCause and effect not necessarily closely linkedBest actions not obvious at firstLow cost and high effectiveness need not to be trade-offsThe entirety is more than the sum of its partsEntire system must be considered together
14 How to Build a Learning Organization? Leaders must beDesignersStewardsTeachersThree pragmatic needsMeaningManagementMeasurementFive building blocksSystematic problem solving processExperimentationLearning from past mistakesLearning from othersTransferring the knowledge through organization
15 Problem Solving Process Assess situation and select problem for resolutionProblem definitionGenerate solution optionsEvaluate options and select preferred optionImplement solutionEvaluate solution
16 Organizational Cultures Culture closely related to learningSocially transmitted behaviour patternsCritical success factors of organizational characterShared visionMotivational faithDistinctive skillsChange in culture must be controlledReasons for failureNo shared vision of impending crisisNo shared vision of a way out of crisisCulture change produces wrong resultsPeople learn in a wrong way
17 Changing CultureChange is often resisted even though it is known to be neededPeople do not know in which way or how to changePoor abilities at double-loop learningPast competence a path to successStereotypical thinkingFall into ideological routinesMultiphase approach to changeAccess corporate cultureIdentify approaches to culture changeNegotiate a shared visionDeploy the shared vision
18 Culture Clash Three different cultures Clash areas Corporate culture stresses loyalty to organizationProfessional culture emphasises given knowledge- Loyalty to profession greater than loyalty to organizationSocial culture represents the values of individualsClash areasSpecializationManagers <-> EmployeesOverspecifying practiceUnderspecifying the endEmployees want autonomyTight supervisionFormalization of controlPrinciples more important than practiceShort-term profits vs. ethics
19 Culture and leadership A number of studies discuss the interaction of culture and leadership and the role of these in creating excellenceE.g Hickman and Silva suggest strategy and culture as foundations for excellenceThey further identify six “new age skills” aggregated under three more generic (need) categories
20 Hickman and SilvaThe need to forge a strong foundation for excellence through:creative insightsensitivityThe need to integrate organizational and individual skills through:vision andpatienceThe need for adaptation through:versatility andFocus
21 Kotter and HeskettKotter and Heskett identified several important cultural realities:Organizational culture has a significant impact on the long term performance of an organizationThe importance of culture will increase in the futureOrganizational cultures that are debilitating to long term performance are not uncommonOrganizational cultures can be changed to allow enhanced performanceEffort is primarily concerned with identification of the characteristics of cultures that will be most supportive of excellence performance.
22 Leadership and management: Studies of individual and organizational leadership Covey’s SEVEN habits of effective peopleFirst three relate to individual concernsNext three relate to group and organizational issuesThe last concerns learning and renewalcounterbalance independence anddependence relations
23 CoveyCovey also identifies THREE primary traits of effective leaders (a) integrity (b) maturity and (c) abundant mentality and THREE types of power:Principle-centered power, based on honorUtility power, based on fairnessCoercive power, based on fearRelated to various contexts for learning
24 Covey FOUR paradigms that could be used as a basis for leadership: The scientific management paradigmThe human relations paradigmThe human resources paradigmThe principle-centered leadership paradigm
25 Badaracco and Ellworth Badaracco and Ellworth’s identified THREE leadership philosophies based on a set of fundamental assumptions about human nature and the resulting behavior patterns of people in organizationsPolitical leadershipDirective leadershipValue-driven leadershipPhilosophies are also provided with suggestions for operational management and task control
26 Rothschild - identified FOUR major leadership roles Risk-takers, often creators of an organization who have the dedication and talent to implement a strategic visionCare-takers, who nurture an organization beyond its growth stage into a healthy maturitySurgeons, who examine diseased portions of an organization and correct or remove those portionsUndertakers, who harvest and/or merge the organization in order to mercifully lay to rest an unsalvageable organization & rescue those portions that are capable & in need of rebirth in a new form
27 Kotter Kotter has distinguished between leadership and management Kotter indicates that leadership involves moving people from one state to a better state without transgressing on the rights of otherTo do this, leadership involves three principal activities that roughly correspond to the definition, development, and deployment effort in systems engineering :
28 Kotter continues… 1. Agenda creation. Direction setting is needed to establish a future vision and strategies for theneeded changes to enable realization of the vision.2. Developing human networks. Communication ofthe vision and developing a set of shared assumptionsand understanding the vision are needed to achievean alignment of people who are committed toorganizational progress.3. Action implementation or execution. Motivatingand inspiring people to move in directions appropriate toachieve the strategic vision despite the politicalchallenges and bureaucratic barriers.
29 Cultural Framework Models Sage introduces two separate works on cultural frameworksBolman and Deal’s (1991), andBergquist (1992).They all are built for a university environment.These are suggested to be applicable in a more general organizational setting.
30 Bolman and Deal’s Cultural Framework Model Bolman and Deal (1994) identify FOUR frameworks for modeling organizational culture:1) structural framework; formal rationality and analytical methodologic approaches are preffered for organizing2) human relations framework; purpose of organization is support for the people in the organization
31 Dolman and Deal (cont.)3) political framework; organization viewed as a coalition of diverse interests - most of which based on differing values and perceptions of reality4) symbolic framework; sees that meaning, or interpretation, of the same event across subcultures will generally be very differentambiguity in organization-> formal rational analysis becomes difficult-> humans create symbols that become surrogates for more fundamental and meaningful events.
32 Bergquist’s Cultural Framework Berguist (1992) divides organizational cultures into FOUR:1) collegial culture; sees diversity of perspective and autonomy of effort -> supports academic governance-> supports disciplinary scholarship and research2) managerial culture; closely associated with junior- college culture and any very strongly top-down leadership-> acceptance of detailed plans expected
33 Bergquist (cont.)3) developmental culture; orgzns and their processes designed to effectively accommodate needs of university (organization)-> supports fulfillment of university (organization) mission4) negotiating culture; very concerned with personal and financial needs of faculty and staff-> change takes place through confrontational efforts and effective use of scarce resources - often includes bargaining efforts
34 Cultural Dynamics Model of Oraganizational Forms This model is developed by Henry Minzberg and aims to describe organizational forms, to help design effective organizations.FIVE mechanisms describe work coordination approaches in industrial organizations:Mutual adjustmentDirect supervisionStandardization of work processesStandardization of skills and knowledgeStandardization of norms.
35 Process maturity Process models 1) organizational lifecycle process maturityrepresents the extent to which specific processes areexplicitly defined, managed, measured, controlledand effective in achieving their intended purpose2) disciplined process, teams with common values,systems management infrastructure, strongLeadership process mature organization
36 Crosby five stages of development of quality maturity inspiration for the other maturity modelsUncertaintyAwakeningEnlightmentWisdomCertainty
37 Capability Maturity Model (CMM) originally developed by the Software Engineering Institute (SEI) at Carnegie-Mellon Universityit provides software organizations with guidance on processes for developing and maintaining softwarefive levels with key process areas
38 1. Initial levelthe process is not under statistical measurement control at even the operational level, and no systematic process is possibleno key processes
39 2. Repeatable levela measure of thorough operational level product control is achieved through metrics associated with cost, schedule, and product configuration changesbasic program management processes are established
41 3. Defined levelthe process has been understood and specified so that operational quality control is able to yield products with predictable costs and performance schedulesthe organization has a set of standardized, consistent, and repeatable processesprocess management is interactive and processes are well integrated five levels with key process areas
42 3. Defined level (cont.) Organizational Process Focus Organization Process DefinitionTraining ProgramsIntegrated Software ManagementSoftware Product EngineeringIntergroup CoordinationPeer Reviews
43 4. Managed maturity level comprehensive process-related measurements are possible and improvements in product quality are possible through the understanding and controlinteractive process management processes are well in placeQuantitative Process ManagementSoftware Quality Management
44 5. Optimizing level the highest possible level of maturity is reached the organization is able to make continuous improvements in products, services and processesprocess management is highly proactivethere are also interactive and reactive controls and measurements
46 Key process areasEach of the key process areas have a set of SIX common features associated with them.GoalsCommitment to performAbility to performActivities performedSystematic measurement and analysis effortsImplementation verification
47 Process Maturity: Conclusion The majority of organizations in practice today are at levels 1 and 2, with very few at levels 3, 4, and 5There are only few programs which are at levels 4 and 5; the further research will focus on them and the evolution of the CMM at these higher maturity levels
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