Reminders 1.Both “empty” and “full” slides are now available at the course website. 2.Individual paper proposals may be submitted at any time, but the sooner the better. 3.Sending you a mid-term advisory this week or week-end. 4.New course announcement!

Managing Across Cultures BUSI 197 (1.5 credits – Mod IV) * Prerequisites BUSI 100 and BUSI 150 with grades of C or better Announcing a new mod-length course being offered for the first time during Mod IV that provides hands-on understanding of the opportunities and challenges involved in working across geographic and cultural boundaries Highlights include: –Investigation of current cross-cultural management research and theory –Interaction with students from universities around the world, working with you in virtual teams –In-class sessions that build upon virtual team interactions using a variety of case studies & interactive exercises

Information Technology and Control BA 152

Characteristics of Organizations: BA 152 Perspective GOALS STRATEGIES STRUCTURES TECHNOLOGIES SYSTEMS People FIT! Cultures Environment

Direction of Information System Evolution 1. Operations Transaction processing systems Data warehousing 2. Business Resource Management Information systems Decision Support Systems Executive information systems Management control systems Balanced Scorecard 3. Strategic Weapon Intranets ERP Knowledge Management INTERNAL Extranets, EDI Integrated Enterprise E-Business EXTERNAL LOW SYSTEM COMPLEXITY HIGH MANAGEMENT LEVEL TOP (strategy, plans, non-programmed) LOWER LEVEL Evolution of Organizational Applications of Information Technology

Data, Information, & Control Data - Input from any communication channel Information - Data that alters or reinforces understanding Control - Evaluation of information that provides the basis for future actions

Information and Data Information Data Low High

Information and Control Information Control High LowHigh

Control Systems: The Key Pieces Performance Standards Budgets Job Descriptions Quality Levels Production Goals Performance Measures Cash-on-hand Performance Appraisals Process Inspections Product Counts Comparison Actions (if necessary)

Major Control Approaches Market Control - control by prices, competition, markets, and exchanges Bureaucratic Control - control by rules, standards, hierarchy, and authority Clan Control - control by culture, values, tradition, and trust

Control Systems: What gets controlled and how? QualityAppraisalsPricesOutput NormsPoliciesMaterial Costs Process Selection Criteria BudgetsStarting Salaries Input Clan Bureaucracy Market How What

Supervisory Control Strategies Input Control - control by virtue of selection criteria and training Behavior Control - control by observation of employee actions Output Control - control by the amount of work completed

Supervisory Control Strategies What works best when? Are Tasks Structured? YES NO YES Are Outcomes Measurable? NO Use behavior and/or output control Use input and/or output control Use behavioral control Use input, clan, and/or self-control

Developing Effective Control Systems 1.Involve employees in the process, as appropriate 2.Focus on results, not simply on measurement 3.Keep the system as simple as possible 4.Insure timely information to and from the system

5.Make sure the system fits with the firm’s culture, strategy, and structure 6.Anticipate second-, third, and fourth-order effects Developing Effective Control Systems

Effective Control Systems: Keep the following in mind 1.What gets measured is what will get done! 2.System costs must be considered. 3.Too much information can be as bad as too little. 4.You can’t make just one decision.

Control Systems The Balancing Act ControlAutonomy

Knowledge Management

Consider two different types of knowledge important to organizations. –Explicit Knowledge –Implicit Knowledge Types of Knowledge

Explicit Knowledge –Knowledge that is formal and systematic. –Knowledge that can be formally taught to someone. –Knowledge that can be communicated and shared. –Examples? Types of Knowledge

Tacit (implicit) Knowledge –Knowledge that is highly personal. –Knowledge that is acquired as a function of experience and practice. –Knowledge that is hard to formalize. –Knowledge that is difficult to communicate, because “We often know more than we can tell.” –Examples? Types of Knowledge

Sharing Knowledge: The knowledge spiral SOCIALIZATION ARTICULATION Metaphor Analogy Model INTERNALIZATION INSTRUCTION/ COMBINATION/ INNOVATION Redundancy Experience Questioning FROM Tacit Explicit TO ExplicitTacit

Two Approaches to Knowledge Management For Explicit Knowledge Provide high-quality, reliable, and fast information systems for access of codified, reusable knowledge

Two Approaches to Knowledge Management MechanismsTechnology Knowledge Managemen t Strategy People-to-documents Develop an electronic document system that codifies, stores, disseminates, and allows reuse of knowledge. Invest heavily in information technology, with a goal of connecting people with reusable codified knowledge. Data warehousing Knowledge mapping Electronic libraries Intranets, networks

For Tacit Knowledge Channel individual expertise to provide creative advice on strategic problems Two Approaches to Knowledge Management

Person-to-person Develop networks for linking people so that tacit knowledge can be shared Invest moderately in information technology, with a goal of facilitating conversations and the exchange of tacit knowledge Dialogue Learning histories and storytelling Communities of practice Mechanisms Technology Knowledge Managemen t Strategy Two Approaches to Knowledge Management

Communities of Practice Collections of individuals –Bound together by informal relationships –Sharing similar work roles –Sharing common work context –Not constrained by geographical, business unit, or functional boundaries

Communities of Practice “Practice” suggests how individuals actually do their jobs as opposed to their formal job descriptions from their firm.

Collective Comparisons As long as people need to connect Mutual needsFriends & business contacts To collect & pass on information Informal network Until project is completed Milestones and project goals Assigned by senior manager To complete a specific task Project team Until the next reorganization Job demands and common goals Those reporting to manager To deliver a product or service Formal work group As long as there is interest Passion, commitment, identification Members select themselves To build & exchange knowledge Community of practice How long does it last? What holds it together? Who belongs? Purpose?

Why should we allow/encourage but not attempt to formally “manage” COPs? 1.They can help drive strategy. 2.They can start new lines of business. 3.They can solve problems quickly. 4.They are able to transfer best practices. 5.They develop professional skills. 6.They can help companies recruit and retain talent. Communities of Practice

Next Time Organizational Size, Life Cycles, and Decline