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Modern Management 9th edition

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1 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

2 10/5/2017 Ü Objectives An understanding of the importance of management to society & individuals An understanding of the role of management An ability to define management in several different ways An ability to list & define the basic functions of management Working definitions of managerial effectiveness & managerial efficiency An understanding of basic management skills & their relative importance to managers An understanding of the universality of management Insights concerning what management careers are & how they evolve An understanding of management’s digital focus .

3 THE IMPORTANCE OF MANAGEMENT
10/5/2017 THE IMPORTANCE OF MANAGEMENT Influences all levels of an organization Operations Human Resources Sales .

4 Overall Compensation for Four Disney Top Managers: Fiscal Year 2000 a
10/5/2017 THE MANAGEMENT TASK Table 1.1 Overall Compensation for Four Disney Top Managers: Fiscal Year 2000 a Name and Title Salary Bonus Total Options Fiscal Annual /Other Year Compensation Total Michael D. Eisner $ 813,462 $ 8,500,000 $ 9,313,462 $ 3,004,020 $12,317,482 Chairman of Board, CEO Robert A. Iger 1,084,615 5,000,000 6,084, ,135,128 9,219,743 President, COO, Director Thomas O. Staggs 700,000 1,500,000 2,200, ,020 2,202,020 Senior Executive VP, Pres., CFO Peter E. Murphy 700,000 1,500,000 2,200, ,020 2,204,020 Senior Executive VP, CSO a Figures based on company records .

5 THE MANAGEMENT TASK The Role of Management Defining Management
10/5/2017 THE MANAGEMENT TASK The Role of Management Defining Management Continuing and related activities Reaching organizational goals Working with people and resources .

6 The Management Process: Management Functions
10/5/2017 THE MANAGEMENT TASK The Management Process: Management Functions Planning Organizing Influencing Controlling Gather Compare Modify .

7 Management Process and Goal Attainment
10/5/2017 THE MANAGEMENT TASK Management Process and Goal Attainment Bias for action Closeness to customer Autonomy and entrepreneurship Productivity through people Hands-on, value-driven orientation “Sticking to the knitting’’ Simple organizational form with lean staff Simultaneous loose-tight properties .

8 THE MANAGEMENT TASK Interrelations of the four functions of Management
10/5/2017 THE MANAGEMENT TASK Organizational Goals Planning Influencing Controlling Organizing Interrelations of the four functions of Management to attain organizational goals Figure 1.2 .

9 Management and Organizational Resources
10/5/2017 THE MANAGEMENT TASK Management and Organizational Resources Managerial Effectiveness Managerial Efficiency Management Skills Technical Human Conceptual .

10 THE MANAGEMENT TASK Organizational Resources Finished Products
10/5/2017 THE MANAGEMENT TASK Organizational Resources People Money Raw Materials Capital Resources Inputs Finished Products Goods Services Outputs Production Process Transformation of organizational resources into finished products through the production process Figure 1.3 .

11 THE MANAGEMENT TASK Various combinations of managerial
10/5/2017 THE MANAGEMENT TASK Efficient (most resources contribute to production) Not reaching goals and not wasting resources Reaching goals and not wasting resources R E S O U R C E U S E Inefficient (few resources contribute to production) Not reaching goals and wasting resources Reaching goals and wasting resources Ineffective (little progress toward goals) Effective (substantial progress toward goals) G O A L A C C O M P L I S H M E N T Various combinations of managerial effectiveness and managerial efficiency Figure 1.4 .

12 Supervisory or operational
10/5/2017 THE MANAGEMENT TASK MANAGEMENT LEVELS SKILLS NEEDED Needs Top Manage-ment Conceptual skills Middle Management Needs Human skills Needs Supervisory or operational Management Technical skills As a manager moves from supervisory to top-management, conceptual skills become more important than technical, but human remain important Figure 1.5 .

13 THE UNIVERSALITY OF MANAGEMENT
10/5/2017 THE UNIVERSALITY OF MANAGEMENT Universal Universality of Management The Theory of Characteristics Positive physical and mental qualities Special knowledge related to operation .

14 Career Stages, Life Stages, and Performance
10/5/2017 MANAGEMENT CAREERS A Definition of Career Career Stages, Life Stages, and Performance Exploration Stage Establishment Stage Maintenance Stage Career plateauing Decline Stage .

15 MANAGEMENT CAREERS The relationships among career stages,
10/5/2017 MANAGEMENT CAREERS High Performance Low Growth? Maintenance? Advancement Decline Stagnation? Trial Exploration Establishment Maintenance Decline The relationships among career stages, life stages, and performance Figure 1.6 .

16 Promoting Your Own Career
10/5/2017 MANAGEMENT CAREERS Promoting Your Own Career Plan Proactive Manager Position .

17 MANAGEMENT CAREERS Manager and Employee Roles in Enhancing
10/5/2017 MANAGEMENT CAREERS Manager and Employee Roles in Enhancing Employee Career Development Table 1.2 Dimension Professional Employee Manager Responsibility Assumes responsibility for individual Assumes responsibility for employee career development development Information Obtains career information through Provides information by holding up a mirror self-evaluation and data collection: of reality: What do I enjoy doing? How manager views the employee Where do I want to go? How others view the employee How “things work around here’’ Planning Develops an individual plan to reach Helps employee assess plan objectives Follow-through Invites management support through Provides coaching and relevant information high performance on the current job by on opportunities understanding the scope of the job and taking appropriate initiative .

18 MANAGEMENT CAREERS Special Career Issues Women Managers
10/5/2017 MANAGEMENT CAREERS Special Career Issues Women Managers Dual-Career Couples How Dual-Career Couples Cope .

19 MODERN MANAGEMENT’S DIGITAL FOCUS
10/5/2017 MODERN MANAGEMENT’S DIGITAL FOCUS Defining Digital Dimension Digital Digital Dimension Digital Dimensioning Digital Dimensioning and Traditional Management Functions .

20 SPECIAL FEATURES FOR REMAINING CHAPTERS
10/5/2017 SPECIAL FEATURES FOR REMAINING CHAPTERS Law of the situation Spotlights Global Ethics Diversity Quality People Across Industries Digital Focus .

21 10/5/2017 Chapter One ? Questions

22 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

23 Ü Objectives An understanding of the classical approach to management
10/5/2017 Ü Objectives An understanding of the classical approach to management An appreciation for the work of Frederick W. Taylor, Frank and Lillian Gilbreth, Henry L. Gantt, and Henri Fayol An understanding of the behavioral approach to management An understanding of the studies at the Hawthorne Works and the human relations movement An understanding of the management science approach to management An understanding of how the management science approach has evolved An understanding of the system approach to management Knowledge about the learning organization approach to management An understanding of how triangular management and the contingency approach to management are related .

24 THE CLASSICAL APPROACH
10/5/2017 THE CLASSICAL APPROACH Classical approach to management Lower-level management analysis Comprehensive analysis of management MAJOR CONTRIBUTORS Frederick W. Taylor Frank and Lillian Gilbreth Henry L. Gantt MAJOR CONTRIBUTOR Henri Fayol Division of classical approach to management into two areas and the major contributors to each area Figure 2.1 .

25 THE CLASSICAL APPROACH
10/5/2017 THE CLASSICAL APPROACH Lower-Level Management Analysis Scientific management Frederick W. Taylor Work at Bethlehem Steel Co. Frank Gilbreth and Lillian Gilbreth Motion study Henry L. Gantt Scheduling Innovation Rewarding Innovation .

26 THE CLASSICAL APPROACH
10/5/2017 THE CLASSICAL APPROACH Table 2.1 Partial Results for One of Gilbreth’s Bricklaying Motion Studies # Wrong Way Right Way Pick and Dip Method: Exterior 4 Inches (Laying to the Line) 1 Step for mortar Omit On the scaffold, the inside edge of the mortar box should be plumb with the inside edge of the stock platform. On the floor, the inside edge of the mortar box should be 21 inches from the wall.Mortar boxes should never be over 4 feet apart. 2 Reach for mortar Reach for mortar Do not bend any more than absolutely necessary to reach mortar with a straight arm. 3 Work up mortar Omit Provide mortar of the right consistency. Examine sand screen and keep it in repair so that no pebbles can get through. Keep tender on scaffold to temper up and keep mortar worked up right. 4 Step for brick Omit If tubs are kept 4 feet apart, no stepping for brick will be necessary on scaffold. On the floor, keep brick in a pile not nearer than 1 foot or more than 4 feet 6 inches from wall. 5 Reach for brick Included in 2 Brick must be reached for at the same time that the mortar is reached for, and picked up at exactly the same time the mortar is picked up. If it is not picked up at the same time, allowance must be made for operation. .

27 THE CLASSICAL APPROACH
10/5/2017 THE CLASSICAL APPROACH Comprehensive Analysis of Management Henri Fayol General principles: 1. Division of work 8. Centralization 2. Authority (Responsibility) 9. Scalar chain 3. Discipline 10. Order 4. Unity of command 11. Equity 5. Unity of direction 12. Stability of tenure of personnel 6. Subordination of individual to general interests 13. Initiative 7. Remuneration 14. Esprit de corps Limitations of the Classical Approach .

28 THE BEHAVIORAL APPROACH
10/5/2017 THE BEHAVIORAL APPROACH The Hawthorne Studies Relay Assembly Test Bank Wiring Observation Recognizing the Human Variable The Human Relations Movement Human relations skill .

29 THE MANAGEMENT SCIENCE APPROACH
10/5/2017 THE MANAGEMENT SCIENCE APPROACH The Beginning of the Management Science Approach Observe Construct Deduce Test Management Science Today Characteristics of Management Science Applications .

30 THE CONTINGENCY APPROACH
10/5/2017 THE CONTINGENCY APPROACH Main challenges of using the contingency approach: Perceiving Choosing Implementing .

31 THE SYSTEM APPROACH Types of Systems Systems Closed system Open system
10/5/2017 THE SYSTEM APPROACH Systems Types of Systems Closed system Open system .

32 THE SYSTEM APPROACH Systems and “Wholeness”
10/5/2017 THE SYSTEM APPROACH Systems and “Wholeness” System wholeness analysis guidelines: Whole is the main focus with parts secondary Integration is the key variable Modifications weighed in relation to other parts Each part has some role to perform Whole determines part and its function All analysis starts with existence of the whole .

33 THE SYSTEM APPROACH The Management System Major parts:
10/5/2017 THE SYSTEM APPROACH The Management System Major parts: Organizational input Organizational process Organizational output .

34 The open management system
10/5/2017 THE SYSTEM APPROACH Input Process Output Environment Customers Competitors Government Suppliers The open management system Figure 2.2 .

35 Information for Management System Analysis
10/5/2017 THE SYSTEM APPROACH Information for Management System Analysis Triangular management Three primary sources: Classical approach Behavioral approach Management science approach .

36 THE SYSTEM APPROACH Triangular management model
10/5/2017 THE SYSTEM APPROACH CLASSICALLY-BASED INFORMATION Input Process Output Environment MANAGEMENT SCIENCE-BASED INFORMATION Customers Competitors Government Suppliers BEHAVIORALLY-BASED INFORMATION Triangular management model Figure 2.3 .

37 THE SYSTEM APPROACH Learning Organization: A New Approach?
10/5/2017 THE SYSTEM APPROACH Learning Organization: A New Approach? Building a learning organization entails: Systems thinking Shared vision Challenging of mental models Team learning Personal mastery .

38 10/5/2017 Chapter Two ? Questions

39 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

40 Ü Objectives An understanding of the classical approach to management
10/5/2017 Ü Objectives An understanding of the classical approach to management An appreciation for the work of Frederick W. Taylor, Frank and Lillian Gilbreth, Henry L. Gantt, and Henri Fayol An understanding of the behavioral approach to management An understanding of the studies at the Hawthorne Works and the human relations movement An understanding of the management science approach to management An understanding of how the management science approach has evolved An understanding of the system approach to management Knowledge about the learning organization approach to management An understanding of how triangular management and the contingency approach to management are related .

41 THE CLASSICAL APPROACH
10/5/2017 THE CLASSICAL APPROACH Classical approach to management Lower-level management analysis Comprehensive analysis of management MAJOR CONTRIBUTORS Frederick W. Taylor Frank and Lillian Gilbreth Henry L. Gantt MAJOR CONTRIBUTOR Henri Fayol Division of classical approach to management into two areas and the major contributors to each area Figure 2.1 .

42 THE CLASSICAL APPROACH
10/5/2017 THE CLASSICAL APPROACH Lower-Level Management Analysis Scientific management Frederick W. Taylor Work at Bethlehem Steel Co. Frank Gilbreth and Lillian Gilbreth Motion study Henry L. Gantt Scheduling Innovation Rewarding Innovation .

43 THE CLASSICAL APPROACH
10/5/2017 THE CLASSICAL APPROACH Table 2.1 Partial Results for One of Gilbreth’s Bricklaying Motion Studies # Wrong Way Right Way Pick and Dip Method: Exterior 4 Inches (Laying to the Line) 1 Step for mortar Omit On the scaffold, the inside edge of the mortar box should be plumb with the inside edge of the stock platform. On the floor, the inside edge of the mortar box should be 21 inches from the wall.Mortar boxes should never be over 4 feet apart. 2 Reach for mortar Reach for mortar Do not bend any more than absolutely necessary to reach mortar with a straight arm. 3 Work up mortar Omit Provide mortar of the right consistency. Examine sand screen and keep it in repair so that no pebbles can get through. Keep tender on scaffold to temper up and keep mortar worked up right. 4 Step for brick Omit If tubs are kept 4 feet apart, no stepping for brick will be necessary on scaffold. On the floor, keep brick in a pile not nearer than 1 foot or more than 4 feet 6 inches from wall. 5 Reach for brick Included in 2 Brick must be reached for at the same time that the mortar is reached for, and picked up at exactly the same time the mortar is picked up. If it is not picked up at the same time, allowance must be made for operation. .

44 THE CLASSICAL APPROACH
10/5/2017 THE CLASSICAL APPROACH Comprehensive Analysis of Management Henri Fayol General principles: 1. Division of work 8. Centralization 2. Authority (Responsibility) 9. Scalar chain 3. Discipline 10. Order 4. Unity of command 11. Equity 5. Unity of direction 12. Stability of tenure of personnel 6. Subordination of individual to general interests 13. Initiative 7. Remuneration 14. Esprit de corps Limitations of the Classical Approach .

45 THE BEHAVIORAL APPROACH
10/5/2017 THE BEHAVIORAL APPROACH The Hawthorne Studies Relay Assembly Test Bank Wiring Observation Recognizing the Human Variable The Human Relations Movement Human relations skill .

46 THE MANAGEMENT SCIENCE APPROACH
10/5/2017 THE MANAGEMENT SCIENCE APPROACH The Beginning of the Management Science Approach Observe Construct Deduce Test Management Science Today Characteristics of Management Science Applications .

47 THE CONTINGENCY APPROACH
10/5/2017 THE CONTINGENCY APPROACH Main challenges of using the contingency approach: Perceiving Choosing Implementing .

48 THE SYSTEM APPROACH Types of Systems Systems Closed system Open system
10/5/2017 THE SYSTEM APPROACH Systems Types of Systems Closed system Open system .

49 THE SYSTEM APPROACH Systems and “Wholeness”
10/5/2017 THE SYSTEM APPROACH Systems and “Wholeness” System wholeness analysis guidelines: Whole is the main focus with parts secondary Integration is the key variable Modifications weighed in relation to other parts Each part has some role to perform Whole determines part and its function All analysis starts with existence of the whole .

50 THE SYSTEM APPROACH The Management System Major parts:
10/5/2017 THE SYSTEM APPROACH The Management System Major parts: Organizational input Organizational process Organizational output .

51 The open management system
10/5/2017 THE SYSTEM APPROACH Input Process Output Environment Customers Competitors Government Suppliers The open management system Figure 2.2 .

52 Information for Management System Analysis
10/5/2017 THE SYSTEM APPROACH Information for Management System Analysis Triangular management Three primary sources: Classical approach Behavioral approach Management science approach .

53 THE SYSTEM APPROACH Triangular management model
10/5/2017 THE SYSTEM APPROACH CLASSICALLY-BASED INFORMATION Input Process Output Environment MANAGEMENT SCIENCE-BASED INFORMATION Customers Competitors Government Suppliers BEHAVIORALLY-BASED INFORMATION Triangular management model Figure 2.3 .

54 THE SYSTEM APPROACH Learning Organization: A New Approach?
10/5/2017 THE SYSTEM APPROACH Learning Organization: A New Approach? Building a learning organization entails: Systems thinking Shared vision Challenging of mental models Team learning Personal mastery .

55 10/5/2017 Chapter Two ? Questions

56 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

57 10/5/2017 Ü Objectives An understanding of the term corporate social responsibility An appreciation of the arguments both for and against the assumption of social responsibilities by business Useful strategies for increasing the social responsiveness of an organization Insights into the planning, organizing, influencing, and controlling of social responsibility activities A practical plan for how society can help business meet its social obligations An understanding of the relationship between ethics and management An understanding of how ethics can be incorporated into management practice .

58 FUNDAMENTALS OF SOCIAL RESPONSIBILITY
10/5/2017 FUNDAMENTALS OF SOCIAL RESPONSIBILITY The Davis Model of Corporate Social Responsibility Responsibility arises from power Operate business as a two-way open system Calculate and consider costs and benefits Costs passed on to the consumer Responsibility to become involved .

59 FUNDAMENTALS OF SOCIAL RESPONSIBILITY
10/5/2017 FUNDAMENTALS OF SOCIAL RESPONSIBILITY Areas of Corporate Social Responsibility Most publicized: Urban affairs Consumer affairs Environmental affairs Employment practices affairs .

60 FUNDAMENTALS OF SOCIAL RESPONSIBILITY
10/5/2017 FUNDAMENTALS OF SOCIAL RESPONSIBILITY Varying Opinions on Social Responsibility Arguments For Business Performing Social Responsibility Activities Arguments Against .

61 FUNDAMENTALS OF SOCIAL RESPONSIBILITY
10/5/2017 FUNDAMENTALS OF SOCIAL RESPONSIBILITY Conclusions About the Performance of Social Responsibility Activities by Business Performing Required Social Responsibility Activities Voluntarily Performing Social Responsibility Activities Communicating the Degree of Social Responsibility Involvement .

62 FUNDAMENTALS OF SOCIAL RESPONSIBILITY
10/5/2017 FUNDAMENTALS OF SOCIAL RESPONSIBILITY Primary Functions of Several Federal Agencies That Enforce Social Responsibility Legislation Table 3.1 Federal Agency Primary Agency Functions Primary Agency Functions Equal Employment Opportunity Commission Investigates and conciliates employment discrimination complaints that are based on race, sex, or creed Office of Federal Contract Compliance Programs Ensures that employers holding federal contracts grant equal employment opportunity to people regardless of their race or sex Environmental Protection Agency Formulates and enforces environmental standards in such areas as water, air, and noise pollution Consumer Product Safety Commission Strives to reduce consumer misunderstanding of manufacturers’ product design, labeling, and so on, by promoting clarity of these messages Occupational Safety and Health Administration Regulates safety and health conditions in nongovernment workplaces National Highway Traffic Safety Administration Attempts to reduce traffic accidents through the regulation of transportation-related manufacturers and products Mining Enforcement and Safety Administration Attempts to improve safety conditions for mine workers by enforcing all mine safety and equipment standards .

63 FUNDAMENTALS OF SOCIAL RESPONSIBILITY
10/5/2017 FUNDAMENTALS OF SOCIAL RESPONSIBILITY Outcomes of Social Responsibility Involvement Expected by Executives and the Percent Who Expected Them Table 3.2 Expected Outcomes Percent of Executives Expecting Them Positive Outcomes Enhanced corporate reputation and goodwill 97.4 Strengthening of the social system in which the corporation functions 89.0 Strengthening of the economic system in which the corporation functions 74.3 Greater job satisfaction among all employees 72.3 Avoidance of government regulation 63.7 Greater job satisfaction among executives 62.8 Increased chances for survival of the firm 60.7 Ability to attract better managerial talent 55.5 Increased long-term profitability 52.9 Strengthening of the pluralistic nature of American society 40.3 Maintaining or gaining customers 38.2 Investor preference for socially responsible firms 36.6 Increased short-term profitability 15.2 Negative Outcomes Decreased short-term profitability 59.7 Conflict of economic or financial and social goals 53.9 Increased prices for consumers 41.4 Conflict in criteria for assessing managerial performance 27.2 Disaffection of stockholders 24.1 Decreased productivity 18.8 Decreased long-term profitability 13.1 Increased government regulation 11.0 Weakening of the economic system in which the corporation functions 7.9 Weakening of the social system in which the corporation functions 3.7 .

64 SOCIAL RESPONSIVENESS
10/5/2017 SOCIAL RESPONSIVENESS Determining If a Social Responsibility Exists Stakeholders Social Responsiveness and Decision-Making .

65 SOCIAL RESPONSIVENESS
10/5/2017 SOCIAL RESPONSIVENESS Stakeholders of a Typical Modern Organization and Examples of Social Obligations Managers Owe to Them Table 3.3 Stakeholder Social Obligations Owed Stockholders/owners of the organization To increase the value of the organization Suppliers of materials To deal with them fairly Banks and other lenders To repay debts Government agencies To abide by laws Employees and unions To provide safe working environment and to negotiate fairly with union representatives Consumers To provide safe products Competitors To compete fairly and to refrain from restraints of trade Local communities and society at large To avoid business practices that harm the environment .

66 SOCIAL RESPONSIVENESS
10/5/2017 SOCIAL RESPONSIVENESS No action 1. Does a social responsibility really exist in this case? 2. Does the firm have a right to undertake this action? 3. Does an assessment of all interests indicate that the action is desirable? 4. Do benefits outweigh costs? 4A. Can subcontracting or other means reduce the cost to a net beneficial level? 5. Could this action be better handled by other parties who are willing to undertake the task? 6. Can we bear the cost of this action? 7. Do we possess the managerial competence to do the job? 7A. Can we acquire needed competence through training or recruitment? 7B. Can we subcontract the activity to parties that possess the required competence? Consider Consider Undertake Flowchart of social responsibility decision making that generally will enhance the social responsiveness of an organization Figure 3.1 .

67 SOCIAL RESPONSIVENESS
10/5/2017 SOCIAL RESPONSIVENESS Approaches to Meeting Social Responsibility Lipson’s approach does the following: Incorporates social goals into annual planning process Seeks comparative industry norms for social programs Presents reports on social responsibility progress Experiments with approaches for measuring social performance Attempts to measure the cost and return of social programs S. Prakash Sethi’s management approaches: Social obligation Social responsibility Social responsiveness approach .

68 SOCIAL RESPONSIBILITY ACTIVITIES AND MANAGEMENT FUNCTIONS
10/5/2017 SOCIAL RESPONSIBILITY ACTIVITIES AND MANAGEMENT FUNCTIONS Planning Social Responsibility Activities The Overall Planning Process Converting Organizational Policies on Social Responsibility into Action Phase 1: Recognition by top management of social obligation Phase 2: Involves staff personnel as well as top management Phase 3: Obtain commitment and create realistic expectations Organizing Social Responsibility Activities .

69 SOCIAL RESPONSIBILITY ACTIVITIES AND MANAGEMENT FUNCTIONS
10/5/2017 SOCIAL RESPONSIBILITY ACTIVITIES AND MANAGEMENT FUNCTIONS ENVIRONMENTAL FORECASTS Social Economic Political Technological Result in Result in Result in Long-Run Plans Short-Run Plans Management Action FEEDBACK Integration of social responsibility activities and planning activities Figure 3.2 .

70 SOCIAL RESPONSIBILITY ACTIVITIES AND MANAGEMENT FUNCTIONS
10/5/2017 SOCIAL RESPONSIBILITY ACTIVITIES AND MANAGEMENT FUNCTIONS Issue: Action: Outcome: Obtain organizational commitment Change performance expectations Corporate obligation Write and communicate policy Enriched purpose, increased awareness Obtain knowledge Add staff specialists EXECUTIVES CHIEF Issue: Action: Outcome: Technical problem Design data sys & interpret environment Tech & info groundwork Provoke response from operating units Apply data sys to performance measure SPECIALISTS STAFF O R G A N I Z A T I O N A L L E V E L Issue: Action: Outcome: Management problem Commit resources & modify procedures Increased responsiveness MANAGEMENT DIVISION Conversion of social responsibility policy into action Figure 3.3 .

71 SOCIAL RESPONSIBILITY ACTIVITIES AND MANAGEMENT FUNCTIONS
10/5/2017 SOCIAL RESPONSIBILITY ACTIVITIES AND MANAGEMENT FUNCTIONS Office of the chairperson Manager environmental conservation (research department) Vice president law and public affairs Standard Oil (Indiana) foundation Director social & environmental affairs Manager urban minority affairs public affairs services Director public affairs operations Manager social environment planning, research national media services Director communications services Manager international public affairs Director shareholder communications Manager public affairs planning, research (Public affairs coordinator for various corporate functions: manager of domestic areas PA services) (Coordinator, representative for PA abroad) (Research analyst, company historian) How Standard Oil Company of Indiana includes social responsibility in its organization chart Figure 3.4 .

72 SOCIAL RESPONSIBILITY ACTIVITIES AND MANAGEMENT FUNCTIONS
10/5/2017 SOCIAL RESPONSIBILITY ACTIVITIES AND MANAGEMENT FUNCTIONS Influencing Individuals Performing Social Responsibility Activities Controlling Social Responsibility Activities Areas of Measurement Economic function Quality-of-life Social investment Problem-solving The Social Audit: A Progress Report .

73 HOW SOCIETY CAN HELP BUSINESS MEET SOCIAL OBLIGATIONS
10/5/2017 HOW SOCIETY CAN HELP BUSINESS MEET SOCIAL OBLIGATIONS According to Jerry McAfee chairman of the board and CEO of Gulf Oil Corporation society has the following responsibilities to business: Set rules that are clear and consistent Keep the rules technically feasible Make sure the rules are economically feasible Make the rules prospective, not retroactive Make the rules goal-setting, not procedure-prescribing .

74 Why Ethics Is a Vital Part of Management Practices
10/5/2017 BUSINESS ETHICS A Definition of Ethics Why Ethics Is a Vital Part of Management Practices Productivity Stakeholder Relations Government Regulation .

75 The Johnson & Johnson Credo
10/5/2017 BUSINESS ETHICS We believe our first responsibility is to the doctors, nurses, and patients, to mothers and all others who use our products and services. In meeting their needs everything we do must be of high quality. We must constantly strive to reduce our costs in order to maintain reasonable prices. Customers’ orders must be serviced promptly and accurately. Our suppliers and distributors must have an opportunity to make a fair profit. We are responsible to our employees, the men and women who work with us throughout the world. Everyone must be considered as an individual. We must respect their dignity and recognize their merit. They must have a sense of security in their jobs. Compensation must be fair and adequate, and working conditions clean, orderly and safe. Employees must feel free to make suggestions and complaints. There must be equal opportunity for employment, development, and advancement for those qualified. We must provide competent management, and their actions must be just and ethical. We are responsible to the communities in which we live and work and to the world community as well. We must be good citizens—support good works and charities and bear our fair share of taxes. We must encourage civic improvements and better health and education. We must maintain in good order the property we are privileged to use, protecting the environment and natural resources. Our final responsibility is to our stockholders. Business must make a sound profit. We must experiment with new ideas. Research must be carried on, innovative programs developed and mistakes paid for. New equipment must be purchased, new facilities provided, and new products launched. Reserves must be created to provide for adverse times. When we operate according to these principles, the stockholders should realize a fair return. The Johnson & Johnson Credo Figure 3.5 .

76 BUSINESS ETHICS A Code of Ethics Creating an Ethical Workplace
10/5/2017 BUSINESS ETHICS A Code of Ethics Creating an Ethical Workplace The general public considers actions ethical when consistent with one or more of the following standards: The golden rule The utilitarian principle Kant’s categorical imperative The professional ethic The TV test The legal test The four-way test .

77 Martin Marietta’s corporate ethics statement
10/5/2017 BUSINESS ETHICS To ensure continuing attention to matters of ethics and standards on the part of all Martin Marietta employees, the Corporation has established the Corporate Ethics Office. The Director of Corporate Ethics is charged with responsibility for monitoring performance under this Code of Ethics and for resolving concerns presented to the Ethics Office. Martin Marietta calls on every employee to report any violation or apparent violation of the Code. The Corporation strongly encourages employees to work with their supervisors in making such reports, and in addition, provides to employees the right to report violations directly to the Corporate Ethics Office. Prompt reporting of violations is considered to be in the best interest of all. Employee reports will be handled in absolute confidence. No employee will suffer indignity or retaliation because of a report he or she makes to the Ethics Office The Chairman of the Corporate Ethics Committee will be the President of the Corporation. The Committee will consist of five other employees of the Corporation, including representatives of the Corporation’s operating elements, each of whom will be appointed by the Chairman of the Committee subject to the approval of the Audit and Ethics Committee of the Corporation’s Board of Directors. The Chairman of the Corporate Ethics Committee reports to the Audit and Ethics Committee of the Martin Marietta Corporation Board of Directors. Martin Marietta’s corporate ethics statement Figure 3.6 .

78 10/5/2017 Chapter Three ? Questions

79 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

80 10/5/2017 Ü Objectives A definition of diversity and an understanding of its importance in the corporate structure An understanding of the advantages of having a diverse workforce An awareness of the challenges facing managers within a diverse workforce An understanding of the strategies for promoting diversity in organizations Insights into the role of the manager in promoting diversity in the organization .

81 The Social Implications of Diversity
10/5/2017 DEFINING DIVERSITY The Social Implications of Diversity Majority and Minority Groups Majority group: Hold decision-making positions Control resources and information Access system rewards Minority group: Have fewer granted rights Have lower status than majority .

82 ADVANTAGES OF DIVERSITY IN ORGANIZATIONS
10/5/2017 ADVANTAGES OF DIVERSITY IN ORGANIZATIONS Gaining and Keeping Market Share Cost Savings Increased Productivity and Innovation Better-Quality Management .

83 ADVANTAGES OF DIVERSITY IN ORGANIZATIONS
10/5/2017 ADVANTAGES OF DIVERSITY IN ORGANIZATIONS Table 4.1 Advantages of a Diverse Workforce • Improved ability to gain and keep market share • Cost savings • Increased productivity • A more innovative workforce • Minority and women employees who are more motivated • Better quality of managers • Employees who have internalized the message that “different” does not mean “less than’’ • Employees who are accustomed to making use of differing worldviews, learning styles, and approaches in the decision-making process and in the cultivation of new ideas • Employees who have developed multicultural competencies, such as learning to recognize, surface, discuss, and work through work-related issues pertaining to global, cultural, or intergroup differences • A workforce that is more resilient when faced with change .

84 CHALLENGES THAT MANAGERS FACE IN WORKING WITH DIVERSE POPULATIONS
10/5/2017 CHALLENGES THAT MANAGERS FACE IN WORKING WITH DIVERSE POPULATIONS Changing Demographics Five demographic issues for the twenty-first century: Slowest growth since the 1930s Average age rises and new entrant pool shrinks More women enter workforce Minorities make up larger share of new entrants Immigrants represent largest share of increase .

85 CHALLENGES THAT MANAGERS FACE IN WORKING WITH DIVERSE POPULATIONS
10/5/2017 CHALLENGES THAT MANAGERS FACE IN WORKING WITH DIVERSE POPULATIONS (Black females) (Hispanic females **) (Hispanic males) (Black males) (Asian females *) (Asian males) % o f U. S. P O P U L A T I O N YEARS * Includes Asians, Pacific Islanders, ** No 1978 data available American Indians and Alaska Natives for Hispanics Percentages of U.S. population over the age of 16 for selected minorities Figure 4.1 .

86 CHALLENGES THAT MANAGERS FACE IN WORKING WITH DIVERSE POPULATIONS
10/5/2017 CHALLENGES THAT MANAGERS FACE IN WORKING WITH DIVERSE POPULATIONS Ethnocentrism and Other Negative Dynamics Ethnocentrism and Stereotyping Discrimination Tokenism and Other Challenges .

87 CHALLENGES THAT MANAGERS FACE IN WORKING WITH DIVERSE POPULATIONS
10/5/2017 CHALLENGES THAT MANAGERS FACE IN WORKING WITH DIVERSE POPULATIONS Negative Dynamics and Specific Groups Woman Gender Roles The Glass Ceiling and Sexual Harassment Minorities Bicultural stress Role conflict Role overload Older Workers Stereotypes and Prejudices Workers with Disabilities .

88 CHALLENGES THAT MANAGERS FACE IN WORKING WITH DIVERSE POPULATIONS
10/5/2017 CHALLENGES THAT MANAGERS FACE IN WORKING WITH DIVERSE POPULATIONS WOMEN • Gender-role stereotypes— expectations and prejudices • Limits to organizational advancement (i.e., “glass ceiling”) • High expectations from and scrutiny by other women CHALLENGES IN COMMON • Discrimination in hiring, pay, and promotions • Pressure to conform to the majority culture at the expense of one’s own culture • Hostile or stressful work environment: — too high visibility — too low visibility (e.g., tracked into jobs with low responsibility, status, or opportunity for advancement) • Dynamics of tokenism • Seen as representative spokesperson for all members of one’s group • Isolation or lower degree of social acceptance • Lack of opportunities for mentoring and sponsorship MINORITIES • Racial stereotypes, ethnocentrism, and prejudices • Bicultural stress • High expectations from and scrutiny by other members of one’s group Negative dynamics confronting women and minorities in organizations Figure 4.2 .

89 STRATEGIES FOR PROMOTING DIVERSITY IN ORGANIZATIONS
10/5/2017 STRATEGIES FOR PROMOTING DIVERSITY IN ORGANIZATIONS Hudson Institute’s Recommended Strategies Major issues: Stimulate balanced world growth Accelerate productivity increases in service industries Maintain dynamism of aging workforce Reconcile conflicting needs of women, work, and families Fully integrate minority workers into economy Improve education and skills of all workers .

90 STRATEGIES FOR PROMOTING DIVERSITY IN ORGANIZATIONS
10/5/2017 STRATEGIES FOR PROMOTING DIVERSITY IN ORGANIZATIONS Equal Employment and Affirmative Action Organizational Commitment to Diversity Ignoring Differences Complying with External Policies Enforcing External Policies Responding Inadequately Implementing Adequate Programs Taking Effective Action .

91 STRATEGIES FOR PROMOTING DIVERSITY IN ORGANIZATIONS
10/5/2017 STRATEGIES FOR PROMOTING DIVERSITY IN ORGANIZATIONS No diversity efforts: • Noncompliance with affirmative action & EEOC Diversity efforts based on: • Compliance with affirmative action & EEOC policies • Inconsistent enforcement & implementation (those who breach policies may not be sanctioned unless noncompliance results in legal action) • Support of policies is not rewarded; organization relies on individual managers’ interest or commitment Diversity efforts based on: • Compliance with & enforcement of affirmative action & EEOC policies • No organizational supports with respect to education, training • Inconsistent or poor managerial commitment Diversity efforts based on: • Narrowly defined affirmative action & EEOC policies combined with 1-shot education &/or training programs • Inconsistent managerial commitment; rewards not tied to effective implementation of diversity programs & goal achievement • No attention directed toward organizational climate Diversity efforts based on: • Effective implementation of affirmative action & EEOC policies • Ongoing education & training programs • Managerial commitment tied to organizational rewards • Minimal attention directed toward cultivating an inclusive & supportive organizational climate Broad-based diversity efforts based on: • Effective implementation of affirmative action & EEOC policies • Organization-wide assessment & management’s top-down commitment to diversity • Managerial commitment tied to organizational rewards • Ongoing processes of organization assessment & programs for the purpose of creating an organizational climate that is inclusive & supportive of diverse groups Organizational diversity continuum Figure 4.3 .

92 STRATEGIES FOR PROMOTING DIVERSITY IN ORGANIZATIONS
10/5/2017 STRATEGIES FOR PROMOTING DIVERSITY IN ORGANIZATIONS Pluralism Jean Kim’s strategies for workforce diversity: ‘‘Golden Rule” Approach Assimilation Approach ‘‘Righting-the-Wrongs” Approach Culture-Specific Approach Multicultural Approach .

93 THE ROLE OF THE MANAGER Planning Organizing Influencing Controlling
10/5/2017 THE ROLE OF THE MANAGER Planning Organizing Influencing Controlling .

94 Management Development and Diversity Training
10/5/2017 THE ROLE OF THE MANAGER Management Development and Diversity Training Basic Themes of Diversity Training Focus of training programs: Behavioral awareness Acknowledgment of biases and stereotypes Focus on job performance Avoidance of assumptions Modification of policy and procedure manuals .

95 Management Development and Diversity Training (con’t)
10/5/2017 THE ROLE OF THE MANAGER Management Development and Diversity Training (con’t) Stages in Managing a Diverse Workforce “Unconscious incompetence” “Conscious incompetence” “Consciously competent’’ “Unconscious competence” .

96 THE ROLE OF THE MANAGER Organizational Challenges and Supports
10/5/2017 THE ROLE OF THE MANAGER Organizational Challenges and Supports Related to Managing a Diverse Workforce Table 4.2 Organizational Challenges Employee’s Difficulties in Coping with Cultural Diversity • Resistance to change • Ethnocentrism • Lack of information and misinformation • Prejudices, biases, and stereotypes Reasons Employees Are Unmotivated to Understand Cultural Differences • Lack of time and energy and unwillingness to assume the emotional risk necessary to explore issues of diversity • Absence of social or concrete rewards for investing in diversity work (e.g., lack of peer support and monetary rewards, unclear linkage between multicultural competence and career mobility) • Interpersonal and intergroup conflicts arising when diversity issues are either ignored or mismanaged Work Group Problems • Lack of cohesiveness • Communication problems • Employee stress Organizational Supports Educational Programs and Training to Assist Employees in Working Through Difficulties Top-Down Management Support for Diversity • Managers who have diversity skills and competence • Education and training • Awareness raising • Peer support • Organizational climate that support diversity • Open communication with manager about diversity issues • Recognition for employee development of diversity skills and competencies • Recognition for employee contributions to diversity goals • Organizational rewards for managers’ implementation of organizational diversity goals and objectives .

97 10/5/2017 THE ROLE OF THE MANAGER Management Development and Diversity Training (con’t) Stages in Managing a Diverse Workforce (con’t) Understanding and Influencing Employee Responses Getting Top-Down Support Top-down support organizations boast: Skilled managers Education and diversity training programs Organization promotes diversity and fosters peer support Open communication Recognition for employees’ development Recognition for employee contributions Organizational rewards for managers’ implementation .

98 10/5/2017 Chapter Four ? Questions

99 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

100 10/5/2017 Ü Objectives An understanding of international management and its importance to modern managers An understanding of what constitutes a multinational corporation Insights concerning the risk involved in investing in international operations Insights into those who work in multinational corporations Knowledge about managing multinational corporations Knowledge about managing multinational organizations versus transnational organizations An understanding of how ethics and the preparation of expatriates relate to managing internationally .

101 MANAGING ACROSS THE GLOBE: WHY?
10/5/2017 MANAGING ACROSS THE GLOBE: WHY? Exploding populations in other countries offer a strong profit potential for aggressive businesspeople throughout the world .

102 FUNDAMENTALS OF INTERNATIONAL MANAGEMENT
10/5/2017 FUNDAMENTALS OF INTERNATIONAL MANAGEMENT International management: the performance of management activities across national borders .

103 FUNDAMENTALS OF INTERNATIONAL MANAGEMENT
10/5/2017 FUNDAMENTALS OF INTERNATIONAL MANAGEMENT 1,250* U.S. direct investment position abroad Foreign direct investment position in the United States 1,010 910* 790 D O L L A R S (I n b i l l o n s) * Author projection YEARS U.S. investment in foreign countries versus foreign investment in the United States Figure 5.1 .

104 FUNDAMENTALS OF INTERNATIONAL MANAGEMENT
10/5/2017 FUNDAMENTALS OF INTERNATIONAL MANAGEMENT LEVEL 1 Domestic organizations LEVEL 2 International organizations LEVEL 3 Multinational organizations LEVEL 4 Transnational organizations (No or Low Involvement) (High Involvement) Continuum of international involvement Figure 5.2 .

105 CATEGORIZING ORGANIZATIONS BY INTERNATIONAL INVOLVEMENT
10/5/2017 CATEGORIZING ORGANIZATIONS BY INTERNATIONAL INVOLVEMENT Domestic Organizations operate within a single country International Organizations based within a single country but have transactions in others Multinational Organizations: The Multinational Corporation Defining the Multinational Corporation significant operations in more than one country .

106 CATEGORIZING ORGANIZATIONS BY INTERNATIONAL INVOLVEMENT
10/5/2017 CATEGORIZING ORGANIZATIONS BY INTERNATIONAL INVOLVEMENT Selected Multinational Companies Appearing on the 2001 Forbes Global 500 Table 5.1 Sales Foreign Sales as Net Profits Assets Market Enterprise Company ($mil) % of Total ($mil) ($mil) Value($mil) Value($mil) General Electric 129, , , , ,268 Exxon Mobil 206, , , , ,381 Verizon Communication 64, , , , ,504 IBM 88, ,093 88, , ,097 Wal-Mart Stores 191, ,295 77, , ,897 Philip Morris 63, ,510 79, , ,827 Ford Motor 170, , ,421 52, ,815 General Motors 184, , ,100 48, ,907 Intel 33, ,535 47, , ,620 Procter & Gamble 39, ,618 36,825 86,572 99,846 .

107 CATEGORIZING ORGANIZATIONS BY INTERNATIONAL INVOLVEMENT
10/5/2017 CATEGORIZING ORGANIZATIONS BY INTERNATIONAL INVOLVEMENT The 12 Largest Foreign Investments in the United States ( of 12 ) Table 5.2 % Revenue Net Income Assets Rank Foreign Investor Country US Investment Owned Industry ($mil) ($mil) ($mil) 1 DaimlerChrysler AG* Germany DaimlerChrysler 100 automotive 73,144 E NA 82,722 Freightliner 100 comm veh 10,469 E NA 3,601 Mercedes-Benz US Intl 100 automotive 2,458 E NA ,901 86,071 E 2 BP Amoco Plc* UK BP Amoco 100 energy 38,786 E 3,001 27,348 Atlantic Richfield 100 energy 13,055 E 2,509 26,272 51,841 E 3 Royal Ahold* Nether- Ahold USA 100 supermarkets 19,344 E 954 7,226 lands US Foodservice 100 food serv dist 6,198 E 212 2,013 25,542 E 4 Sony* Japan Sony Music 100 music Sony Pictures 100 film 21,117 E 918 NA Sony Electronics 100 consumer electronics Note: Some foreign investors on the list own U.S. companies indirectly through companies in italics. *Publicly traded in the U.S. in shares or ADRs Earnings before interest and taxes. E: Estimate NA: Not available. .

108 CATEGORIZING ORGANIZATIONS BY INTERNATIONAL INVOLVEMENT
10/5/2017 CATEGORIZING ORGANIZATIONS BY INTERNATIONAL INVOLVEMENT The 12 Largest Foreign Investments in the United States ( of 12 ) Table 5.2 % Revenue Net Income Assets Rank Foreign Investor Country US Investment Owned Industry ($mil) ($mil) ($mil) 5 Royal Dutch/ Nether- Shell Oil 100 energy, 18,438 E 2,486 26,111 Shell Group* lands/UK chemicals 6 Toyota Motor* Japan Toyota Motor Mfg 100 automotive 10,800 E NA NA New United Motor Mfg 050 automotive 4,700 E NA NA Denso Japan Denso International 100 automotive America systems 2,583 E NA 1,888 17,863 E 7 Diagee* UK Burger King 100 fast food 10,900 E NA NA Pillsbury 100 food processing 5,936 E NA NA Utd Distillers 100 wines and spirits ,703 E NA NA & Vintners (US) 17,539 E 8 ING Group* Netherlands ING North America Ins 100 insurance 14,197 E 442 NA ING Barings (US) 100 financial serv 800 E –75 NA 14,997 E Note: Some foreign investors on the list own U.S. companies indirectly through companies in italics. *Publicly traded in the U.S. in shares or ADRs Earnings before interest and taxes. E: Estimate NA: Not available. .

109 CATEGORIZING ORGANIZATIONS BY INTERNATIONAL INVOLVEMENT
10/5/2017 CATEGORIZING ORGANIZATIONS BY INTERNATIONAL INVOLVEMENT The 12 Largest Foreign Investments in the United States ( of 12 ) Table 5.2 % Revenue Net Income Assets Rank Foreign Investor Country US Investment Owned Industry ($mil) ($mil) ($mil) 9 Deutsche Bank AG* Germany Deutsche Bank Americas 100 financial services 14,500 E NA 270,000 DB Alex Brown 100 financial services 10 Tyco International* Bermuda Tyco International (US) 100 diversified mfg&serv 14,409 E NA 21,434 11 Siemens AG* Germany Siemens US 100 electronics 14,350 E NA NA 12 Vodafone AirTouch* UK Verizon Wireless 045 telecommunications 14,000 E NA NA Note: Some foreign investors on the list own U.S. companies indirectly through companies in italics. *Publicly traded in the U.S. in shares or ADRs Earnings before interest and taxes. E: Estimate NA: Not available. .

110 CATEGORIZING ORGANIZATIONS BY INTERNATIONAL INVOLVEMENT
10/5/2017 CATEGORIZING ORGANIZATIONS BY INTERNATIONAL INVOLVEMENT Table 5.3 Six Stages of Multinationalization Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Exports its Establishes Licenses use of Establishes Multinationalizes Multinationalizes products to sales its patterns and foreign management ownership of foreign organizations know-how to manufacturing from top to corporate stock countries abroad foreign firms that facilities bottom make and sell its products .

111 CATEGORIZING ORGANIZATIONS BY INTERNATIONAL INVOLVEMENT
10/5/2017 CATEGORIZING ORGANIZATIONS BY INTERNATIONAL INVOLVEMENT Complexities of Managing The Multinational Corporation International differs from domestic management International involves operating: Within different national sovereignties Under widely disparate economic conditions Among people living within different value systems and institutions In places experiencing the industrial revolution at different times Often over greater geographical distance In national markets varying greatly in population and area .

112 CATEGORIZING ORGANIZATIONS BY INTERNATIONAL INVOLVEMENT
10/5/2017 CATEGORIZING ORGANIZATIONS BY INTERNATIONAL INVOLVEMENT Management implications based on six variables in international systems and relationships among them Figure 5.3 .

113 CATEGORIZING ORGANIZATIONS BY INTERNATIONAL INVOLVEMENT
10/5/2017 CATEGORIZING ORGANIZATIONS BY INTERNATIONAL INVOLVEMENT Risk and the Multinational Corporation Expectations of foreign investments: Reduce or eliminate high transportation costs Allow participation in rapid expansion of a market abroad Provide foreign technical, design, and marketing skills Earn higher profits Parent company Host country .

114 CATEGORIZING ORGANIZATIONS BY INTERNATIONAL INVOLVEMENT
10/5/2017 CATEGORIZING ORGANIZATIONS BY INTERNATIONAL INVOLVEMENT The Workforce of Multinational Corporations Furnish details and related insights Describe members’ adjustments ----- Types of Organization Members Found in Multinational Corporations Expatriates Host-Country Nationals Third-Country Nationals Workforce Adjustments Adjusting to a New Culture Repatriation .

115 MANAGEMENT FUNCTIONS AND MULTINATIONAL CORPORATIONS
10/5/2017 MANAGEMENT FUNCTIONS AND MULTINATIONAL CORPORATIONS Planning in Multinational Corporations Establish new sales force Develop new manufacturing plants Finance international expansion Determine countries for international expansion Components of International Plans Imports/Exports License agreements Direct investing Joint ventures Planning and International Market Agreements The European Community (EC) North American Free Trade Agreement (NAFTA) The Evolving Pacific Rim .

116 MANAGEMENT FUNCTIONS AND MULTINATIONAL CORPORATIONS
10/5/2017 MANAGEMENT FUNCTIONS AND MULTINATIONAL CORPORATIONS Organizing Multinational Corporations Organization Structure Selection Of Managers Managerial Attitudes Toward Foreign Operations Ethnocentric Polycentric Geocentric Advantages and Disadvantages of Each Management Attitude .

117 MANAGEMENT FUNCTIONS AND MULTINATIONAL CORPORATIONS
10/5/2017 MANAGEMENT FUNCTIONS AND MULTINATIONAL CORPORATIONS Partial multinational organization charts based on function, product, territory, customers, and manufacturing process Figure 5.4 .

118 MANAGEMENT FUNCTIONS AND MULTINATIONAL CORPORATIONS
10/5/2017 MANAGEMENT FUNCTIONS AND MULTINATIONAL CORPORATIONS Influencing People in Multinational Corporations Culture Languages Attitudes Needs Controlling Multinational Corporations Special Difficulties Improving Communication Transnational Organizations .

119 INTERNATIONAL MANAGEMENT: SPECIAL ISSUES
10/5/2017 INTERNATIONAL MANAGEMENT: SPECIAL ISSUES Maintaining Ethics in International Management Respecting Core Human Rights Respecting Local Traditions Determining Right from Wrong by Examining Context Preparing Expatriates for Foreign Assignments Expatriates training programs contain: Culture profiles Cultural adaptation Logistical information Application .

120 10/5/2017 Chapter Five ? Questions

121 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

122 10/5/2017 Ü Objectives A definition of planning and an understanding of the purposes of planning Insights into how the major steps of the planning process are related An understanding of the relationship between planning and organizational objectives A knowledge of the areas in which managers should set organizational objectives An appreciation for the potential of a management by objectives (MBO) program A knowledge of how the chief executive relates to the planning process An understanding of the qualifications and duties of planners and how planners can be evaluated .

123 GENERAL CHARACTERISTICS OF PLANNING
10/5/2017 GENERAL CHARACTERISTICS OF PLANNING Defining Planning Purposes of Planning Planning: Advantages and Potential Disadvantages Primacy of Planning .

124 GENERAL CHARACTERISTICS OF PLANNING
10/5/2017 GENERAL CHARACTERISTICS OF PLANNING Planning as the foundation for organizing, influencing, and controlling Figure 6.1 .

125 STEPS IN THE PLANNING PROCESS
10/5/2017 STEPS IN THE PLANNING PROCESS Elements of the planning process Figure 6.2 .

126 THE PLANNING SUBSYSTEM
10/5/2017 THE PLANNING SUBSYSTEM Relationship between overall management system and subsystem Figure 6.3 .

127 THE PLANNING SUBSYSTEM
10/5/2017 THE PLANNING SUBSYSTEM The planning subsystem Figure 6.4 .

128 ORGANIZATIONAL OBJECTIVES: PLANNING’S FOUNDATION
10/5/2017 ORGANIZATIONAL OBJECTIVES: PLANNING’S FOUNDATION Definition of Organizational Objectives Lincoln Electric Company organizational objectives: The goal of the organization must be this— to make a better and better product to be sold at a lower and lower price. Profit cannot be the goal. Profit must be a by-product. This is a state of mind and a philosophy. Actually, an organization doing this job as it can be done will make large profits which must be properly divided between user, worker, and stockholder. This takes ability and character. John F. Mee (1956) : 1. Profit is the motivating force for managers 2. Service to customers justifies business's existence 3. Managers have social responsibilities .

129 ORGANIZATIONAL OBJECTIVES: PLANNING’S FOUNDATION
10/5/2017 ORGANIZATIONAL OBJECTIVES: PLANNING’S FOUNDATION How an open management system operates to reach organizational objectives Figure 6.5 .

130 ORGANIZATIONAL OBJECTIVES: PLANNING’S FOUNDATION
10/5/2017 ORGANIZATIONAL OBJECTIVES: PLANNING’S FOUNDATION Table 6.1 Examples of Statements of Organizational Purpose DuPont DuPont is a multinational, high-technology company that manufactures and markets chemically related products. It services a diversified group of markets in which proprietary technology provides the competing edge. Polaroid Polaroid manufactures and sells photographic products based on its inventions in the field of one-step instant photography and light-polarizing products. Utilizing its inventions in the field of polarized light, the company considers itself to be engaged in one line of business. Central Soya The basic mission of Central Soya is to be a leading producer and merchandiser of products for the worldwide agribusiness and food industry. General Portland Cement It has long been a business philosophy of Central Portland that “we manufacture and sell cement, but we market concrete.” The company sees its job as manufacturing top-quality cement and working with customers to develop new applications for concrete while expanding current uses. .

131 AREAS FOR ORGANIZATIONAL OBJECTIVES
10/5/2017 AREAS FOR ORGANIZATIONAL OBJECTIVES Peter F. Drucker's key areas for management system objectives: 1. Market standing 2. Innovation 3. Productivity 4. Physical and financial resources 5. Profitability 6. Managerial performance and development 7. Worker performance and attitude 8. Public responsibility .

132 WORKING WITH ORGANIZATIONAL OBJECTIVES
10/5/2017 WORKING WITH ORGANIZATIONAL OBJECTIVES Organizational objectives: 1. Short-term 2. Intermediate-term 3. Long-term Developing a Hierarchy of Objectives Suboptimization .

133 WORKING WITH ORGANIZATIONAL OBJECTIVES
10/5/2017 WORKING WITH ORGANIZATIONAL OBJECTIVES Hierarchy of objectives for a medium-sized organization Figure 6.6 .

134 WORKING WITH ORGANIZATIONAL OBJECTIVES
10/5/2017 WORKING WITH ORGANIZATIONAL OBJECTIVES Guidelines for Establishing Quality Objectives 1. Let people responsible for attaining objectives help set them 2. State objectives as specifically as possible 3. Relate objectives to specific actions whenever necessary 4. Pinpoint expected results 5. Set goals high enough so employees will strive to meet them but not so high that they give up trying to meet them 6. Specify when goals are expected to be achieved 7. Set objectives only in relation to other organizational objectives 8. State objectives clearly and simply .

135 MANAGEMENT BY OBJECTIVES (MBO)
10/5/2017 MANAGEMENT BY OBJECTIVES (MBO) MBO strategy: 1. Assign individuals a specialized set of objectives 2. Conduct periodic performance reviews for goal attainment 3. Give rewards based on goals reached The MBO process: 1. Review organizational objectives 2. Set worker objectives 3. Monitor progress 4. Evaluate performance 5. Give rewards .

136 MANAGEMENT BY OBJECTIVES (MBO)
10/5/2017 MANAGEMENT BY OBJECTIVES (MBO) The MBO process Figure 6.7 .

137 MANAGEMENT BY OBJECTIVES (MBO)
10/5/2017 MANAGEMENT BY OBJECTIVES (MBO) Factors Necessary for a Successful MBO Program 1. Top management must be committed to the MBO process and set appropriate objectives for the organization 2. Managers and subordinates together must develop and agree on each individual’s goals 3. Employee performance should be conscientiously evaluated against established objectives 4. Management must follow through on employee performance evaluations by rewarding employees accordingly .

138 MANAGEMENT BY OBJECTIVES (MBO)
10/5/2017 MANAGEMENT BY OBJECTIVES (MBO) MBO Programs: Advantages and Disadvantages Advantages: 1. Emphasizes what to do to achieve goals 2. Secures employee commitment to attaining goals Disadvantages: 1. Development of objectives can be time-consuming 2. Requirements increase volume of paperwork .

139 PLANNING AND THE CHIEF EXECUTIVE
10/5/2017 PLANNING AND THE CHIEF EXECUTIVE Final Responsibility As planners, chief executives ask: 1. In what direction should the organization be going? 2. In what direction is the organization going now? 3. Should something be done to change this direction? 4. Is the organization continuing in an appropriate direction? Planning Assistance .

140 Qualifications of Planners
10/5/2017 THE PLANNER Qualifications of Planners 1. Considerable practical experience within their organization 2. Know how all parts of the organization function and interrelate 3. Expertise in social, political, technical, and economic trends 4. Work well with others .

141 Evaluation of Planners
10/5/2017 THE PLANNER Evaluation of Planners Objective Indicators 1. Use of appropriate techniques 2. Degree of objectivity displayed Malik suggests planner is doing a reputable job if plan: 1. Is in writing 2. Is the result of all elements of the management team working together 3. Defines present and possible future business of the organization 4. Specifically mentions organizational objectives 5. Identifies future opportunities and suggests how to take advantage of them 6. Emphasizes both internal and external environments 7. Describes the attainment of objectives in operational terms 8. Includes both long- and short-term recommendations .

142 10/5/2017 Chapter Six ? Questions

143 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

144 Ü Objectives A fundamental understanding of the term decision
10/5/2017 Ü Objectives A fundamental understanding of the term decision An understanding of each element of the decision situation An ability to use the decision-making process An appreciation for the various situations in which decisions are made An understanding of probability theory and decision trees as decision-making tools Insights into groups as decision makers .

145 FUNDAMENTALS OF DECISIONS
10/5/2017 FUNDAMENTALS OF DECISIONS Definition of a Decision Types of Decisions Programmed Nonprogrammed .

146 FUNDAMENTALS OF DECISIONS
10/5/2017 FUNDAMENTALS OF DECISIONS Traditional and Modern Ways of Handling Programmed and Nonprogrammed Decisions Table 7.1 Decision-Making Techniques Types of Decisions Traditional Modern Programmed: Routine, repetitive decisions 1. Habit 1. Operations research: Organization develops specific 2. Clerical routine: Mathematical analysis models processes for handling them Standard operating procedures Computer simulation 3. Organization structure: 2. Electronic data processing Common expectations A system of subgoals Well-defined information channels Nonprogrammed: One-shot, ill-structured, 1. Judgment, intuition, 1. Heuristic problem-solving novel policy decisions and creativity techniques applied to: Handled by general makers 2. Rules of thumb Training human decision problem-solving processes 3. Selection and training Constructing heuristic of executives computer programs .

147 FUNDAMENTALS OF DECISIONS
10/5/2017 FUNDAMENTALS OF DECISIONS Decision programming continuum Figure 7.1 .

148 FUNDAMENTALS OF DECISIONS
10/5/2017 FUNDAMENTALS OF DECISIONS The Responsibility for Making Organizational Decisions Scope of the decision Broader scope Consensus .

149 FUNDAMENTALS OF DECISIONS
10/5/2017 FUNDAMENTALS OF DECISIONS Level of managers responsible for making decisions as decision scope increases from A to B to C Figure 7.2 .

150 FUNDAMENTALS OF DECISIONS
10/5/2017 FUNDAMENTALS OF DECISIONS How scope of decision affects management level making decision at DuPont Figure 7.3 .

151 FUNDAMENTALS OF DECISIONS
10/5/2017 FUNDAMENTALS OF DECISIONS Elements of the Decision Situation The Decision Makers Goals To Be Served Relevant Alternatives Ordering of Alternatives Choice of Alternatives .

152 THE DECISION-MAKING PROCESS
10/5/2017 THE DECISION-MAKING PROCESS Model of the decision-making process Figure 7.4 .

153 THE DECISION-MAKING PROCESS
10/5/2017 THE DECISION-MAKING PROCESS Identifying an Existing Problem Managers learn of problems by: Orders from superiors Situations relayed by subordinates Normal activity Listing Alternative Solutions Authority factors Biological or human factors Physical factors Technological factors Economic factors .

154 THE DECISION-MAKING PROCESS
10/5/2017 THE DECISION-MAKING PROCESS Additional factors that limit a manager’s number of acceptable alternatives Figure 7.5 .

155 THE DECISION-MAKING PROCESS
10/5/2017 THE DECISION-MAKING PROCESS Selecting the Most Beneficial Alternative Implementing the Chosen Alternative Gathering Problem-Related Feedback .

156 DECISION-MAKING CONDITIONS
10/5/2017 DECISION-MAKING CONDITIONS Complete Certainty Condition Complete Uncertainty Condition Risk Condition .

157 DECISION-MAKING TOOLS
10/5/2017 DECISION-MAKING TOOLS Probability Theory Expected value (EV = I × P) Decision Trees .

158 DECISION-MAKING TOOLS
10/5/2017 DECISION-MAKING TOOLS Expected values from locating surfboard rental store in each of three possible locations Figure 7.6 .

159 DECISION-MAKING TOOLS
10/5/2017 DECISION-MAKING TOOLS A basic decision tree illustrating the decision facing Stygian management Figure 7.7 .

160 Advantages and Disadvantages of Using Groups to Make Decisions
10/5/2017 GROUP DECISION MAKING Advantages and Disadvantages of Using Groups to Make Decisions Advantages: More and better alternatives than individual Implementation supported more fervently Disadvantages: Takes longer Costs the organization more Lower quality if contaminated (Groupthink) .

161 Processes for Making Group Decisions
10/5/2017 GROUP DECISION MAKING Processes for Making Group Decisions Brainstorming Nominal Group Technique 1. Writes down individual ideas 2. Presents individual ideas orally 3. Entire group discusses ideas 4. Secret ballot is taken .

162 Processes for Making Group Decisions (con’t)
10/5/2017 GROUP DECISION MAKING Processes for Making Group Decisions (con’t) Delphi Technique 1. Identify problem 2. Offer solutions anonymously 3. Compile and send responses 4. Generate new solutions 5. Repeat 3 and 4 until consensus reached Evaluating Group Decision-Making Processes .

163 The brainstorming process
10/5/2017 GROUP DECISION MAKING The brainstorming process Figure 7.8 .

164 10/5/2017 Chapter Seven ? Questions

165 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

166 Ü Objectives Definitions of both strategic planning and strategy
10/5/2017 Ü Objectives Definitions of both strategic planning and strategy An understanding of the strategy management process A knowledge of the impact of environmental analysis on strategy formulation Insights into how to use critical question analysis and SWOT analysis to formulate strategy An understanding of how to use business portfolio analysis and industry analysis to formulate strategy Insights into what tactical planning is and how strategic and tactical planning should be coordinated .

167 Fundamentals of Strategic Planning
10/5/2017 STRATEGIC PLANNING Fundamentals of Strategic Planning Defining Strategic Planning Defining Strategy .

168 10/5/2017 STRATEGIC PLANNING Examples of Organizational Objectives and Related Strategies for Three Organizations in Different Business Areas Table 8.1 Company Type of Business Sample Organizational Objectives Strategy to Accomplish Objectives Ford Motor Automobile 1. Regain market share recently 1. Resize and downsize present models Company manufacturing lost to General Motors 2. Continue to produce subintermediate, 2. Regain quality reputation that standard, and luxury cars was damaged because of Pinto 3. Emphasize use of programmed gas tank explosions combustion engines instead of diesel engines Burger Fast food 1. Increase productivity 1. Increase people efficiency King Increase machine efficiency CP Transportation 1. Continue company growth 1. Modernize Railroad 2. Continue company profits 2. Develop valuable real estate holdings 3. Complete an appropriate railroad merger .

169 Steps of the strategy management process
10/5/2017 STRATEGIC PLANNING Steps of the strategy management process Figure 8.1 .

170 Environmental Analysis
10/5/2017 STRATEGIC PLANNING Strategy Management Environmental Analysis The General Environment The Economic Component The Social Component The Political Component The Legal Component The Technology Component The Operating Environment The Customer Component The Competition Component The Labor Component The Supplier Component The International Component The Internal Environment .

171 STRATEGIC PLANNING The organization, the levels of its environment,
10/5/2017 STRATEGIC PLANNING The organization, the levels of its environment, and the components of those levels Figure 8.2 .

172 STRATEGIC PLANNING Important Aspects of the International Component
10/5/2017 STRATEGIC PLANNING Important Aspects of the International Component of the Organization’s Operating Environment Table 8.2 Economic Environment Legal Environment Level of economic development Legal tradition Population Effectiveness of legal system Gross national product Treaties with foreign nations Per capita income Patent and trademark laws Literacy level Laws affecting business firms Social infrastructure Cultural Environment Natural resources Customs, norms, values, beliefs Climate Language Membership in regional economic blocs Attitudes (EEC, LAFTA, etc.) Motivations Monetary and fiscal policies Social institutions Nature of competition Status symbols Currency convertibility Religious beliefs Inflation Political System Taxation system Form of government Interest rates Political ideology Wage and salary levels Stability of government Strength of opposition parties and groups Social unrest Political strife and insurgency Government attitude toward foreign firms Foreign policy .

173 STRATEGIC PLANNING Strategy Management (con’t)
10/5/2017 STRATEGIC PLANNING Strategy Management (con’t) Establishing Organizational Direction Determining Organizational Mission Developing a Mission Statement The Importance of Organizational Mission The Relationship Between Mission and Objectives .

174 STRATEGIC PLANNING Strategy Management (con’t)
10/5/2017 STRATEGIC PLANNING Strategy Management (con’t) Strategy Formulation: Tools Critical Question Analysis SWOT Analysis Business Portfolio Analysis The BCG Growth-Share Matrix The GE Multifactor Portfolio Matrix Porter’s Model for Industry Analysis .

175 The BCG Growth-Share Matrix
10/5/2017 STRATEGIC PLANNING The BCG Growth-Share Matrix Figure 8.3 .

176 GE’s Multifactor Portfolio Matrix
10/5/2017 STRATEGIC PLANNING GE’s Multifactor Portfolio Matrix Figure 8.4 .

177 STRATEGIC PLANNING Porter’s model of factors
10/5/2017 STRATEGIC PLANNING Porter’s model of factors that determine competitiveness within an industry Figure 8.5 .

178 STRATEGIC PLANNING Strategy Management (con’t)
10/5/2017 STRATEGIC PLANNING Strategy Management (con’t) Strategy Formulation: Types Porter’s Generic Strategies Differentiation Cost Leadership Focus Sample Organizational Strategies Growth Stability Retrenchment Divestiture .

179 STRATEGIC PLANNING Strategy Management (con’t) Strategy Implementation
10/5/2017 STRATEGIC PLANNING Strategy Management (con’t) Strategy Implementation Interacting Allocating Monitoring Organizing .

180 Strategy Management (con’t)
10/5/2017 STRATEGIC PLANNING Strategy Management (con’t) Strategic Control Monitors Evaluates Checks that steps of the process are: Appropriate Compatible Functioning properly .

181 Comparing and Coordinating Strategic and Tactical Planning
10/5/2017 TACTICAL PLANNING Comparing and Coordinating Strategic and Tactical Planning Strategic is upper-level management; tactical lower-level Strategic is more difficult to gather than tactical Strategic is less detailed Strategic covers longer period of time; tactical covers shorter period .

182 Major Differences Between Strategic and Tactical Planning
10/5/2017 TACTICAL PLANNING Table 8.3 Major Differences Between Strategic and Tactical Planning Area of Difference Strategic Planning Tactical Planning Individuals involved Developed mainly Developed mainly by upper-level management by lower-level management Facts on which Facts are relatively Facts are relatively to base planning difficult to gather easy to gather Amount of detail Plans contain Plans contain in plans relatively little detail substantial amounts of detail Length of time Plans cover Plans cover plans cover long periods of time short periods of time .

183 PLANNING AND LEVELS OF MANAGEMENT
10/5/2017 PLANNING AND LEVELS OF MANAGEMENT Increase in planning time as manager moves from lower-level to upper-level management Figure 8.6 .

184 10/5/2017 Chapter Eight ? Questions

185 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

186 Ü Objectives A complete definition of a plan
10/5/2017 Ü Objectives A complete definition of a plan Insights regarding various dimensions of plans An understanding of various types of plans Insights into why plans fail A knowledge of various planning areas within an organization A definition of forecasting An ability to see the advantages and disadvantages of various methods of sales forecasting A definition of scheduling An understanding of Gantt charts and PERT .

187 PLANS: A DEFINITION Dimensions of Plans Repetitiveness Time Scope
10/5/2017 PLANS: A DEFINITION Dimensions of Plans Repetitiveness Time Scope Level .

188 Four major dimensions to consider when developing a plan
10/5/2017 PLANS: A DEFINITION Four major dimensions to consider when developing a plan Figure 9.1 .

189 PLANS: A DEFINITION Types of Plans
10/5/2017 PLANS: A DEFINITION Types of Plans Standing Plans: Policies, Procedures, and Rules Single-Use Plans: Programs and Budgets .

190 Standing plans and single-use plans
10/5/2017 PLANS: A DEFINITION Standing plans and single-use plans Figure 9.2 .

191 PLANS: A DEFINITION A successful standing plan program with
10/5/2017 PLANS: A DEFINITION A successful standing plan program with mutually supportive policies, procedures, and rules Figure 9.3 .

192 PLANS: A DEFINITION Why Plans Fail
10/5/2017 PLANS: A DEFINITION Why Plans Fail 1. Corporate planning is not integrated into the total management system 2. There is a lack of understanding of the different steps of the planning process 3. Management at different levels has not properly contributed to planning activities 4. Responsibility for planning is wrongly vested solely in the planning department 5. Management expects that plans developed will be realized with little effort 6. In starting formal planning, too much is attempted at once 7. Management fails to operate by the plan 8. Financial projections are confused with planning 9. Inadequate inputs are used in planning 10. Management fails to grasp the overall planning process .

193 Planning Areas: Input Planning
10/5/2017 PLANS: A DEFINITION Planning Areas: Input Planning Plant Facilities Planning Site selection 1. Deciding on a set of variables critical to obtaining an appropriate site 2. Assigning each of these variables a weight reflecting its relative importance 3. Ranking alternative sites according to how they reflect these different variables Human Resource Planning Questions for personnel planners 1. What types of people does the organization need to reach its objectives? 2. How many of each type are needed? 3. What steps should the organization take to recruit and select such people? 4. Can present employees be further trained to fill future needed positions? 5. At what rate are employees being lost to other organizations? .

194 10/5/2017 PLANS: A DEFINITION Major Areas of Consideration When Selecting a Plant Site and Sample Exploratory Questions to Be Asked Table 9.1 Major Areas Sample Questions Profit Market Location Where are our customers in relation to the site? Competition What competitive situation exists at the site? Operating costs Suppliers Are materials available near the site at reasonable cost? Utilities What are utility rates at the site? Are utilities available in sufficient amounts? Wages What wage rates are paid by comparable organizations near the site? Taxes What are tax rates on income, sales, property, and so on for the site? Investment costs Land/development How expensive are land and construction at the site? Others Transportation Are airlines, railroads, highways, and so on accessible from the site? Laws What laws related to zoning, pollution, and so on will influence operations if the site is chosen? Labor Does an adequate labor supply exist around the site? Unionization What is the degree of unionization in the site area? Living conditions Are housing, schools, and so on around the site appropriate? Community relations Does the community support the organization’s moving into the area? .

195 Results of Weighting Seven Site Variables for Six Countries
10/5/2017 PLANS: A DEFINITION Table 9.2 Results of Weighting Seven Site Variables for Six Countries Sites Maximum Criteria Value Assigned Japan Chile Jamaica Australia Mexico France Living conditions Accessibility Industrialization Labor availability Economics Community capability & attitude Effect on company reputation Total .

196 The human resource planning process
10/5/2017 PLANS: A DEFINITION The human resource planning process Figure 9.4 .

197 PLANNING TOOLS Forecasting How Forecasting Works Types of Forecasts
10/5/2017 PLANNING TOOLS Forecasting How Forecasting Works Insect Control Services forecasts by attempting to do the following: 1. Establish relationships 2. Determine the impact government restrictions 3. Evaluate sales growth potential, profitability, resources required, and risks 4. Evaluate the potential for expansion of marketing efforts 5. Determine the likelihood of technological breakthroughs Types of Forecasts .

198 PLANNING TOOLS Forecasting (con’t) Methods of Sales Forecasting
10/5/2017 PLANNING TOOLS Forecasting (con’t) Methods of Sales Forecasting Jury of Executive Opinion Method 1. Experts answer questions about area being forecasted 2. First summary of all the answers is prepared 3. Experts get copies of first summary to modify as necessary 4. Distribute second summary of these modifications to experts Must justify opinions that deviate significantly from norm 5. Distribute third summary of opinions and justifications to experts Justification for all answers is now required 6. Generate forecast from opinions and justifications from 5 Salesforce Estimation Method Time Series Analysis Method Product Stages: introduction, growth, maturity, saturation, and decline .

199 Time series analysis method
10/5/2017 PLANNING TOOLS Time series analysis method Figure 9.5 .

200 Stages of the product life cycle
10/5/2017 PLANNING TOOLS Stages of the product life cycle Figure 9.6 .

201 PLANNING TOOLS Forecasting (con’t)
10/5/2017 PLANNING TOOLS Forecasting (con’t) Evaluating Sales Forecasting Methods Scheduling Gantt Charts Features .

202 10/5/2017 PLANNING TOOLS Completed Gantt chart Figure 9.7 .

203 Program Evaluation and Review Technique (PERT)
10/5/2017 PLANNING TOOLS Forecasting (con’t) Program Evaluation and Review Technique (PERT) Defining PERT Activities Events Features Critical Path Steps in Designing a PERT Network 1. List all the activities/events for project and their sequence 2. Determine time needed to complete each activity/event 3. Design PERT reflecting all information contained in 1 and 2 4. Identify the critical path .

204 PERT network designed for building a house
10/5/2017 PLANNING TOOLS PERT network designed for building a house Figure 9.8 .

205 10/5/2017 Chapter Nine ? Questions

206 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

207 Ü Objectives An understanding of the organizing function
10/5/2017 Ü Objectives An understanding of the organizing function An appreciation for the complexities of determining appropriate organizational structure Insights into the advantages and disadvantages of division of labor A working knowledge of the relationship between division of labor and coordination An understanding of span of management and the factors that influence its appropriateness An understanding of scalar relationships .

208 A DEFINITION OF ORGANIZING
10/5/2017 A DEFINITION OF ORGANIZING Fayol’s Guidelines 1. Judiciously prepare and execute the operating plan 2. Organize the human and material facets 3. Establish a single competent, energetic guiding authority 4. Coordinate all activities and efforts 5. Formulate clear, distinct, and precise decisions 6. Arrange for efficient selection 7. Define duties 8. Encourage initiative and responsibility 9. Offer fair and suitable rewards for services rendered 10. Make use of sanctions against faults and errors 11. Maintain discipline 12. Ensure that individual interests are consistent 13. Recognize the unity of command 14. Promote both material and human coordination 15. Institute and effect controls 16. Avoid regulations, red tape, and paperwork .

209 A DEFINITION OF ORGANIZING
10/5/2017 A DEFINITION OF ORGANIZING The Importance of Organizing Typical responsibilities would include developing: 1. Reorganization plans for effective and efficient systems 2. Plans to improve managerial skills 3. An advantageous organizational climate .

210 A DEFINITION OF ORGANIZING
10/5/2017 A DEFINITION OF ORGANIZING The Organizing Process 1. Reflect on plans and objectives 2. Establish major tasks 3. Divide major tasks into subtasks 4. Allocate resources and directives 5. Evaluate results The Organizing Subsystem Enhance goal attainment .

211 A DEFINITION OF ORGANIZING
10/5/2017 A DEFINITION OF ORGANIZING The five main steps of the organizing process Figure 10.1 .

212 A DEFINITION OF ORGANIZING
10/5/2017 A DEFINITION OF ORGANIZING Relationships between overall management system and organizing subsystem Figure 10.2 .

213 A DEFINITION OF ORGANIZING
10/5/2017 A DEFINITION OF ORGANIZING Organizing subsystem Figure 10.3 .

214 CLASSICAL ORGANIZING THEORY
10/5/2017 CLASSICAL ORGANIZING THEORY Weber’s Bureaucratic Model Structure Authority and Responsibility Structure and Gender Formal and Informal Structure Departmentalization and Formal Structure: A Contingency Viewpoint .

215 CLASSICAL ORGANIZING THEORY
10/5/2017 CLASSICAL ORGANIZING THEORY Sample organization chart for a small restaurant Figure 10.4 .

216 CLASSICAL ORGANIZING THEORY
10/5/2017 CLASSICAL ORGANIZING THEORY Structure (con’t) Functional Departmentalization Product Departmentalization Geographic Departmentalization Customer Departmentalization Manufacturing Process Departmentalization Forces Influencing Formal Structure 1. Manager 2. Task 3. Environment 4. Subordinates .

217 CLASSICAL ORGANIZING THEORY
10/5/2017 CLASSICAL ORGANIZING THEORY Organization structure based primarily on function Figure 10.5 .

218 CLASSICAL ORGANIZING THEORY
10/5/2017 CLASSICAL ORGANIZING THEORY Organization structure based primarily on product Figure 10.6 .

219 CLASSICAL ORGANIZING THEORY
10/5/2017 CLASSICAL ORGANIZING THEORY Organization structure based primarily on territory Figure 10.7 .

220 CLASSICAL ORGANIZING THEORY
10/5/2017 CLASSICAL ORGANIZING THEORY Organization structure based primarily on customers Figure 10.8 .

221 CLASSICAL ORGANIZING THEORY
10/5/2017 CLASSICAL ORGANIZING THEORY Organization structure based primarily on manufacturing process Figure 10.9 .

222 CLASSICAL ORGANIZING THEORY
10/5/2017 CLASSICAL ORGANIZING THEORY Combined organization chart for Greene Furniture Company Figure 10.10 .

223 CLASSICAL ORGANIZING THEORY
10/5/2017 CLASSICAL ORGANIZING THEORY Division of Labor Advantages and Disadvantages of Division of Labor Division of Labor and Coordination Follett’s Guidelines on Coordination .

224 CLASSICAL ORGANIZING THEORY
10/5/2017 CLASSICAL ORGANIZING THEORY Span of Management Designing Span of Management: A Contingency Viewpoint Similarity of functions Geographic continuity Complexity of functions Coordination Planning .

225 CLASSICAL ORGANIZING THEORY
10/5/2017 CLASSICAL ORGANIZING THEORY Table 10.1 Major Factors that Influence the Span of Management Factor Has Tendency to Increase Factor Has Tendency to Decrease Factor Span of Management When— Span of Management When— 1. Similarity of functions 1. Subordinates have 1. Subordinates have similar functions different functions 2. Geographic contiguity 2. Subordinates are 2. Subordinates are physically close physically distant 3. Complexity of functions 3. Subordinates have 3. Subordinates have simple tasks complex tasks 4. Coordination 4. Work of subordinates needs 4. Work of subordinates needs little coordination much coordination 5. Planning 5. Manager spends 5. Manager spends little time planning much time planning .

226 CLASSICAL ORGANIZING THEORY
10/5/2017 CLASSICAL ORGANIZING THEORY Span of Management (con’t) Graicunas and Span of Management Graicunas’ formula: C = n n - 1 ( ) 2n 2 .

227 CLASSICAL ORGANIZING THEORY
10/5/2017 CLASSICAL ORGANIZING THEORY Span of Management (con’t) Height of Organization Chart Tall chart: Greater height - Smaller span Flat chart: Lower height - Greater span .

228 CLASSICAL ORGANIZING THEORY
10/5/2017 CLASSICAL ORGANIZING THEORY Relationship between organization chart height and span of management Figure 10.11 .

229 CLASSICAL ORGANIZING THEORY
10/5/2017 CLASSICAL ORGANIZING THEORY Scalar Relationships Unity of command Fayol’s Guidelines on Chain of Command Gangplank .

230 CLASSICAL ORGANIZING THEORY
10/5/2017 CLASSICAL ORGANIZING THEORY Sample organization chart showing that adhering to the chain of command is not advisable Figure 10.12 .

231 10/5/2017 Chapter Ten ? Questions

232 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

233 10/5/2017 Ü Objectives An understanding of the relationship of responsibility, authority, and delegation Information on how to divide and clarify the job objectives of individuals working within an organization Knowledge of the differences among line authority, staff authority, and functional authority An appreciation for the issues that can cause conflict in line and staff relationships Insights into the value of accountability to the organization An understanding of how to delegate A strategy for eliminating various barriers to delegation A working knowledge of when and how an organization should be decentralized .

234 Dividing Job Activities
10/5/2017 RESPONSIBILITY The Job Description Dividing Job Activities The Functional Similarity Method Interrelated steps: 1. Examine management system objectives 2. Designate appropriate activities 3. Design specific jobs 4. Make specific individuals responsible .

235 RESPONSIBILITY Sequence of activities for the
10/5/2017 RESPONSIBILITY Sequence of activities for the functional similarity method of dividing job activities Figure 11.1 .

236 Dividing Job Activities (con’t)
10/5/2017 RESPONSIBILITY Dividing Job Activities (con’t) Functional Similarity and Responsibility Overlapping responsibility 1. One of the two may perform the job 2. Both employees may perform the job 3. Neither employee may perform the job 4. Employees may spend valuable time negotiating job Responsibility gap Goal attainment activities .

237 Clarifying Job Activities of Managers
10/5/2017 RESPONSIBILITY Clarifying Job Activities of Managers Management Responsibility Guide Responsible Managers Appraising the manager: 1. Attitude toward and conduct with subordinates 2. Behavior with upper management 3. Behavior with other groups 4. Personal attitudes and values .

238 RESPONSIBILITY Seven Responsibility Relationships among Managers,
10/5/2017 RESPONSIBILITY Seven Responsibility Relationships among Managers, as Used in the Management Responsibility Guide Table 11.1 1. General Responsibility The individual who guides and directs the execution of the function through the person accepting operating responsibility. 2. Operating Responsibility The individual who is directly responsible for the execution of the function. 3. Specific Responsibility The individual who is responsible for executing a specific or limited portion of the function. 4. Must Be Consulted The individual whose area is affected by a decision who must be called on to render advice or relate information before any decision is made or approval is granted. This individual does not, however, make the decision or grant approval. 5. May Be Consulted The individual who may be called on to relate information, render advice, or make recommendations before the action is taken. 6. Must Be Notified The individual who must be notified of any action that has been taken. 7. Must Approve The individual (other than persons holding general and operating responsibility) who must approve or disapprove the decision. .

239 Four Key Dimensions of Responsible Management Behavior
10/5/2017 RESPONSIBILITY Table 11.2 Four Key Dimensions of Responsible Management Behavior Behavior with Behavior with Behavior with Personal Attitudes Subordinates Upper Management Other Groups and Values ———————————————————Responsible managers———————————————————— 1. Take complete 1. Accept criticism for 1. Make sure that any 1. Identify with the group charge of their mistakes and buffer gaps between their 2. Put organizational work groups their groups from areas and those of goals ahead of 2. Pass praise excessive criticism other managers personal desires and credit 2. Ensure that their are securely filled. or activities along to groups meet Perform tasks for subordinates management which there is no 3. Stay close expectations immediate reward to problems and objectives but that help and activities subordinates, the 4. Take actions to company, or both maintain productivity Conserve corporate and are willing to resources as if the terminate poor resources were performers if necessary their own .

240 Acceptance of Authority
10/5/2017 AUTHORITY Authority on the Job Acceptance of Authority Barnard maintains authority will be accepted only if individual: 1. Can understand the order being communicated 2. Believes the order is consistent with the purpose of the organization 3. Sees the order as compatible with his or her personal interests 4. Is mentally and physically able to comply with the order .

241 Acceptance of Authority (con’t)
10/5/2017 AUTHORITY Acceptance of Authority (con’t) Barnard maintains commands will be accepted over long term if: 1. Manager uses formal channels of communication that are familiar to all 2. Each member has an assigned formal communication channel 3. Line of communication between manager and subordinate is as direct 4. Complete chain of command is used to issue orders 5. Manager possesses adequate communication skills 6. Manager uses formal communication lines only for organizational business 7. A command is authenticated as coming from a manager .

242 AUTHORITY Types of Authority Accountability Line and Staff Authority
10/5/2017 AUTHORITY Types of Authority Line and Staff Authority Line–Staff Relationships Roles of Staff Personnel Harold Stieglitz roles that staff personnel perform: 1. Advisory or counseling 2. Service 3. Control Conflict in Line–Staff Relationships Functional Authority Accountability .

243 Possible line–staff relationships in selected organizational areas
10/5/2017 AUTHORITY Possible line–staff relationships in selected organizational areas Figure 11.2 .

244 10/5/2017 AUTHORITY Proposed design for incorporating three types of authority in a hospital Figure 11.3 .

245 DELEGATION Steps in the Delegation Process
10/5/2017 DELEGATION Steps in the Delegation Process Obstacles to the Delegation Process 1. Obstacles related to the supervisor 2. Obstacles related to subordinates 3. Obstacles related to organizations Eliminating Obstacles to the Delegation Process .

246 Guidelines for Making Delegation Effective
10/5/2017 DELEGATION Table 11.3 Guidelines for Making Delegation Effective • Give employees freedom to pursue tasks in their own way • Establish mutually agreed-upon results and performance standards for delegated tasks • Encourage employees to take an active role in defining, implementing, and communicating progress on tasks • Entrust employees with completion of whole projects or tasks whenever possible • Explain the relevance of delegated tasks to larger projects or to department or organization goals • Give employees the authority necessary to accomplish tasks • Allow employees access to all information, people, and departments necessary to perform delegated tasks • Provide training and guidance necessary for employees to complete delegated tasks satisfactorily • When possible, delegate tasks on the basis of employee interests .

247 Centralization and Decentralization
10/5/2017 DELEGATION Centralization and Decentralization Decentralizing an Organization: A Contingency Viewpoint Questions to determine the amount of decentralization: 1. What is the present size of the organization? 2. Where are the organization’s customers located? 3. How homogeneous is the organization’s product line? 4. Where are organizational suppliers? 5. Is there a need for quick decisions in the organization? 6. Is creativity a desirable feature of the organization? .

248 Centralized and decentralized organizations on delegation continuum
10/5/2017 DELEGATION Centralized and decentralized organizations on delegation continuum Figure 11.4 .

249 DELEGATION Centralization and Decentralization (con’t)
10/5/2017 DELEGATION Centralization and Decentralization (con’t) Decentralization at Massey-Ferguson: A Classic Example Guidelines for Decentralization 1. Person with authority to delegate must possess competence to make decisions 2. Decision maker must have adequate and reliable information pertinent to decision 3. Manager accountable for the most units must have authority to make decision Delegation as a Frame of Mind Complementing Centralization .

250 DELEGATION Centralization and Decentralization (con’t)
10/5/2017 DELEGATION Centralization and Decentralization (con’t) Decentralization at Massey-Ferguson: A Classic Example (con’t) Management Responsibilities 1. Responsibility for determining overall the objectives of the enterprise 2. Responsibility for formulating the policies that guide the enterprise 3. Final responsibility for control of the business 4. Responsibility for product design 5. Responsibility for planning for achievement of overall objectives and for measuring actual performance against those plans 6. Final approval of corporate plans or budgets 7. Decisions pertaining to availability and application of general company funds 8. Responsibility for capital investment plans .

251 10/5/2017 Chapter Eleven ? Questions

252 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

253 10/5/2017 Ü Objectives An overall understanding of how appropriate human resources can be provided for the organization An appreciation for the relationship among recruitment efforts, an open position, sources of human resources, and the law Insights into the use of tests and assessment centers in employee selection An understanding of how the training process operates A concept of what performance appraisals are and how they can best be conducted .

254 DEFINING APPROPRIATE HUMAN RESOURCES
10/5/2017 DEFINING APPROPRIATE HUMAN RESOURCES Appropriate human resources Inappropriate human resources Factors for fit of individual in organization: Background Age Job-related experience Level of formal education .

255 STEPS IN PROVIDING HUMAN RESOURCES
10/5/2017 STEPS IN PROVIDING HUMAN RESOURCES Four sequential steps to provide appropriate human resources for an organization Figure 12.1 .

256 STEPS IN PROVIDING HUMAN RESOURCES
10/5/2017 STEPS IN PROVIDING HUMAN RESOURCES Recruitment To be effective, recruiters must know: 1. The job they are trying to fill 2. Where potential human resources can be located 3. How the law influences recruiting efforts Knowing the Job Job analysis Job description Job specification .

257 STEPS IN PROVIDING HUMAN RESOURCES
10/5/2017 STEPS IN PROVIDING HUMAN RESOURCES Relationship of job analysis, job description, and job specification Figure 12.2 .

258 STEPS IN PROVIDING HUMAN RESOURCES
10/5/2017 STEPS IN PROVIDING HUMAN RESOURCES Recruitment (con’t) Knowing Sources of Human Resources Sources Inside the Organization Human Resource Inventory Record-keeping devices Management inventory card What is the organizational history of an individual? What potential does that person possess? Position replacement form If a position becomes vacant, who might be eligible to fill it? Management manpower replacement chart What are the merits of one individual being considered for a position compared to those of another? .

259 STEPS IN PROVIDING HUMAN RESOURCES
10/5/2017 STEPS IN PROVIDING HUMAN RESOURCES Management inventory card Figure 12.3 .

260 STEPS IN PROVIDING HUMAN RESOURCES
10/5/2017 STEPS IN PROVIDING HUMAN RESOURCES Position replacement form Figure 12.4 .

261 STEPS IN PROVIDING HUMAN RESOURCES
10/5/2017 STEPS IN PROVIDING HUMAN RESOURCES Management manpower replacement chart Figure 12.5 .

262 STEPS IN PROVIDING HUMAN RESOURCES
10/5/2017 STEPS IN PROVIDING HUMAN RESOURCES Recruitment (con’t) Knowing Sources of Human Resources (con’t) Sources Outside the Organization 1. Competitors Individual knows the business Competitor paid for individual’s training up to the time of hire Competition weakened somewhat by the loss of the individual Once hired, individual has information about competition 2. Employment agencies 3. Readers of certain publications Wall Street Journal Journal of Training and Development Chronicle of Higher Education 4. Educational institutions .

263 STEPS IN PROVIDING HUMAN RESOURCES
10/5/2017 STEPS IN PROVIDING HUMAN RESOURCES Recruitment (con’t) Knowing the Law Civil Rights Act Equal Employment Opportunity Commission (EEOC) Affirmative Action Eliminating barriers to affirmative action: 1. Determine how many are presently employed 2. Determine how many should be employed according to EEOC 3. Compare the numbers obtained in 1 and 2 .

264 STEPS IN PROVIDING HUMAN RESOURCES
10/5/2017 STEPS IN PROVIDING HUMAN RESOURCES Selection Testing 1. Aptitude tests 2. Achievement tests 3. Vocational interest tests 4. Personality tests Testing Guidelines 1. Test is both valid and reliable 2. Results are not sole determinant of a hiring decision 3. Tests are nondiscriminatory .

265 STEPS IN PROVIDING HUMAN RESOURCES
10/5/2017 STEPS IN PROVIDING HUMAN RESOURCES Summary of major factors in the selection process Figure 12.6 .

266 STEPS IN PROVIDING HUMAN RESOURCES
10/5/2017 STEPS IN PROVIDING HUMAN RESOURCES Selection (con’t) Assessment Centers 1. Leadership 2. Organizing and planning ability 3. Decision making 4. Oral and written communication skills 5. Initiative 6. Energy 7. Analytical ability 8. Resistance to stress 9. Use of delegation 10. Behavior flexibility 11. Human relations competence 12. Originality 13. Controlling 14. Self-direction 15. Overall potential .

267 STEPS IN PROVIDING HUMAN RESOURCES
10/5/2017 STEPS IN PROVIDING HUMAN RESOURCES Training Determining Training Needs Determining Needed Skills 1. Evaluate the production process within the organization Clues to deficiencies in production-related expertise: Excessive rejected products Unmet deadlines High labor costs 2. Get direct feedback from employees on what they believe are the organization’s training needs 3. Look into the future Designing the Training Program .

268 STEPS IN PROVIDING HUMAN RESOURCES
10/5/2017 STEPS IN PROVIDING HUMAN RESOURCES Management training topics for police within the Alabama Department of Public Safety Table 12.1 - Organization Theory - Effective Communication - Leadership - Hiring Practices - Organizational Goals - Training Process - Media Relations - Measuring Productivity - Problem Solving - Employee Evaluations - Decision Making - Discipline - Time Management - Legal Aspects of Discipline and Termination - Stress Management - Motivation - Ethics and Integrity - Contingency Planning .

269 STEPS IN PROVIDING HUMAN RESOURCES
10/5/2017 STEPS IN PROVIDING HUMAN RESOURCES Steps of the training process Figure 12.7 .

270 STEPS IN PROVIDING HUMAN RESOURCES
10/5/2017 STEPS IN PROVIDING HUMAN RESOURCES Training (con’t) Administering the Training Program Techniques for Transmitting Information 1. Lectures 2. Programmed learning Techniques for Developing Skills On the job: Coaching, Position rotation, Special project committees Classroom techniques: Management games, Role-playing activities Evaluating the Training Program 1. Has the excessive reject rate of products declined? 2. Are deadlines being met more regularly? 3. Are labor costs per unit produced decreasing? .

271 STEPS IN PROVIDING HUMAN RESOURCES
10/5/2017 STEPS IN PROVIDING HUMAN RESOURCES Performance Appraisal Why Use Performance Appraisals? 1. Provide systematic judgments to support: Salary increases Promotions Transfers Demotions or terminations 2. Means of telling subordinates how they are doing Suggesting needed changes in: Behavior Attitudes Skills Job knowledge Let subordinates know where they stand with the boss 3. Furnish a useful basis for the coaching and counseling of individuals by superiors .

272 STEPS IN PROVIDING HUMAN RESOURCES
10/5/2017 STEPS IN PROVIDING HUMAN RESOURCES Table 12.2 Descriptions of Several Methods of Performance Appraisal Appraisal Method Description Rating scale Individuals appraising performance use a form containing several employee qualities and characteristics to be evaluated (e.g., dependability, initiative, leadership). Each evaluated factor is rated on a continuum or scale ranging, for example, from 1 to 7. Employee comparisons Appraisers rank employees according to such factors as job performance and value to organization. Only one employee can occupy a particular ranking. Free-form essay Appraisers simply write down their impressions of employees in paragraph form. Critical-form essay Appraisers write down particularly good or bad events involving employees as these events occur. Records of all documented events for any one employee are used to evaluate that persons performance. .

273 STEPS IN PROVIDING HUMAN RESOURCES
10/5/2017 STEPS IN PROVIDING HUMAN RESOURCES Performance Appraisal (con’t) Handling Performance Appraisals 1. Stress both performance in position and success in attaining objectives 2. Emphasize how well the individual is doing the job 3. Acceptable to both the evaluator and the subject 4. Provide a base for improving individuals’ productivity Potential Weaknesses of Performance Appraisals Pitfalls to avoid: 1. Focusing employees on short-term rewards 2. Viewing appraisals as a reward–punishment situation 3. Emphasizing the completion of paperwork 4. Viewing the process as unfair or biased 5. Offering unfavorable comments .

274 10/5/2017 Chapter Twelve ? Questions

275 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

276 Ü Objectives A working definition of changing an organization
10/5/2017 Ü Objectives A working definition of changing an organization An understanding of the relative importance of change and stability to an organization Some ability to recognize what kind of changes should be made within an organization An appreciation for why the people affected by a change should be considered when the change is being made Some facility at evaluating change An understanding of how organizational change and stress are related Knowledge about virtuality as a vehicle for organizational change .

277 FUNDAMENTALS OF CHANGING AN ORGANIZATION
10/5/2017 FUNDAMENTALS OF CHANGING AN ORGANIZATION Defining Changing an Organization The Importance of Change General Motors' “think list”: 1. Can a machine be used to do a better or faster job? 2. Can the fixture now in use be improved? 3. Can handling of materials for the machine be improved? 4. Can a special tool be used to combine the operations? 5. Can the quality of the part being produced be improved by changing the sequence of the operation? 6. Can the material used be cut or trimmed differently for greater economy or efficiency? 7. Can the operation be made safer? 8. Can paperwork regarding this job be eliminated? 9. Can established procedures be simplified? Change Versus Stability .

278 FUNDAMENTALS OF CHANGING AN ORGANIZATION
10/5/2017 FUNDAMENTALS OF CHANGING AN ORGANIZATION Adaptation, stability, and organizational survival Figure 13.1 .

279 FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION
10/5/2017 FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION The collective influence of five major factors on the success of changing an organization Figure 13.2 .

280 FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION
10/5/2017 FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION The Change Agent Determining What Should Be Changed Organizational effectiveness depends on: 1. People - attitudes, leadership skills, communication skills 2. Structure - organizational controls, such as policies and procedures 3. Technology - equipment or processes that assist in job performance .

281 FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION
10/5/2017 FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION Determination of organizational effectiveness by the relationship of people, technological, and structural factors Figure 13.3 .

282 FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION
10/5/2017 FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION The Kind of Change to Make Structural Change Describing Structural Change 1. Clarifying and defining jobs 2. Modifying organizational structure to fit communication needs 3. Decentralizing organization to reduce cost of coordination Increase controllability of subunits Increase motivation Gain greater flexibility Matrix Organizations Making the Change to Matrix: An Example .

283 FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION
10/5/2017 FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION Portion of a traditional organizational structure based primarily on product line Figure 13.4 .

284 FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION
10/5/2017 FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION Traditional organization chart transformed into matrix organization chart Figure 13.5 .

285 FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION
10/5/2017 FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION The Kind of Change to Make (con’t) People Change Describing People Change:Organization Development (OD) Grid OD The Ideal Style Main Training Phases .

286 FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION
10/5/2017 FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION The managerial grid Figure 13.6 .

287 FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION
10/5/2017 FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION The Kind of Change to Make (con’t) People Change (con’t) The Status of Organization Development Weaknesses in OD efforts: 1. Effectiveness difficult to evaluate 2. Generally too time-consuming 3. Objectives commonly too vague 4. Total costs difficult to gauge at time program starts 5. OD programs are generally too expensive Improve the quality of OD efforts by: 1. Systematically tailor to meet the specific needs of organization 2. Continually demonstrate how people should change their behavior 3. Conscientiously change reward systems .

288 FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION
10/5/2017 FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION Individuals Affected by the Change Resistance to Change Reducing Resistance to Change 1. Avoid surprises 2. Promote real understanding Will I lose my job? Will my old skills become obsolete? Am I capable of producing effectively under the new system? Will my power and prestige decline? Will I be given more responsibility than I care to assume? Will I have to work longer hours? Will it force me to betray or desert my good friends? 3. Set the stage for change 4. Make tentative change Test reactions to new situation before committing to it Acquire more facts to base attitudes and behavior toward change Review and modify some of the preconceptions Less likely to regard the change as a threat Management evaluates and modifies before carrying out .

289 FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION
10/5/2017 FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION Evaluation of the Change Additional change is justified if it: 1. Further improves the means for satisfying someone’s economic wants 2. Increases profitability 3. Promotes human work for human beings 4. Contributes to individual satisfaction and social well-being .

290 The Importance of Studying Stress
10/5/2017 CHANGE AND STRESS Defining Stress The Importance of Studying Stress Effects on health, concentration, and decision-making Employee absenteeism and turnover Safety of other workers or even the public Cost to organizations .

291 Managing Stress in Organizations
10/5/2017 CHANGE AND STRESS Managing Stress in Organizations Understanding How Stress Influences Worker Performance Identifying Unhealthy Stress in Organizations Observable symptoms of undesirably high stress levels: •Constant fatigue •Temper outbursts •Low energy •Compulsive eating •Moodiness •High levels of anxiety •Increased aggression •Chronic worrying •Excessive use of alcohol .

292 CHANGE AND STRESS The relationship between worker stress
10/5/2017 CHANGE AND STRESS The relationship between worker stress and the level of worker performance Figure 13.7 .

293 Managing Stress in Organizations (con’t)
10/5/2017 CHANGE AND STRESS Managing Stress in Organizations (con’t) Helping Employees Handle Stress Reducing Stressors in the Organization 1. Create an organizational climate that is supportive of individuals 2. Make jobs interesting 3. Design and operate career counseling programs .

294 Defining a Virtual Organization
10/5/2017 VIRTUALITY Defining a Virtual Organization Degrees of Virtuality The Virtual Office Defining a Virtual Office Occasional Telecommuting Hoteling Tethered in Office Home-Based, Some Mobility Fully Mobile Reasons for Establishing a Virtual Office Challenges to Managing a Virtual Office .

295 Continuum of alternative work arrangements
10/5/2017 VIRTUALITY Continuum of alternative work arrangements Figure 13.8 .

296 10/5/2017 Chapter Thirteen ? Questions

297 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

298 Ü Objectives An understanding of influencing
10/5/2017 Ü Objectives An understanding of influencing An understanding of interpersonal communication A knowledge of how to use feedback An appreciation for the importance of nonverbal communication Insights into formal organizational communication An appreciation for the importance of the grapevine Some hints on how to encourage organizational communication .

299 FUNDAMENTALS OF INFLUENCING
10/5/2017 FUNDAMENTALS OF INFLUENCING Defining Influencing The Influencing Subsystem 1. Leading 2. Motivating 3. Considering groups 4. Communicating .

300 FUNDAMENTALS OF INFLUENCING
10/5/2017 FUNDAMENTALS OF INFLUENCING Relationship between overall management system and influencing subsystem Figure 14.1 .

301 FUNDAMENTALS OF INFLUENCING
10/5/2017 FUNDAMENTALS OF INFLUENCING The influencing subsystem Figure 14.2 .

302 FUNDAMENTALS OF INFLUENCING
10/5/2017 FUNDAMENTALS OF INFLUENCING Chief Executives, Ranking of Skills They Believe Should Be Taught to Management Students Table 14.1 Frequency Rank* Key Learning Area Indicated 1 Oral and written communication skills 25 1 Interpersonal skills 25 3 Financial/managerial account skills 22 4 Ability to think, be analytical, and make decisions 20 5 Strategic planning and goal setting—concern for long-term performance 13 6 Motivation and commitment to the firm—giving 110% 12 7 Understanding of economics 11 8 Management information systems and computer applications 9 8 Thorough knowledge of your business, culture, and overall environment 9 8 Marketing concept (the customer is king) and skills 9 11 Integrity 7 11 Knowledge of yourself: setting long- and short-term career objectives 7 13 Leadership skills 6 13 Understanding of the functional areas of the business 6 13 Time management: setting priorities—how to work smart, not long or hard 1 *is most important. .

303 Interpersonal Communication
10/5/2017 COMMUNICATION Interpersonal Communication How Interpersonal Communication Works Basic elements of transmitting information to others: 1. The source/encoder 2. The signal 3. The decoder/destination Successful and Unsuccessful Interpersonal Communication .

304 10/5/2017 COMMUNICATION Role of the source, signal, and destination in the communication process Figure 14.3 .

305 Overlapping fields of experience that ensure successful communication
10/5/2017 COMMUNICATION Overlapping fields of experience that ensure successful communication Figure 14.4 .

306 Interpersonal Communication (con’t)
10/5/2017 COMMUNICATION Interpersonal Communication (con’t) How Interpersonal Communication Works (con’t) Barriers to Successful Interpersonal Communication Macrobarriers 1. The increasing need for information 2. The need for increasingly complex information 3. The reality that people in the United States are increasingly coming into contact with people who use languages other than English 4. The constant need to learn new concepts cuts down on the time available for communication Microbarriers 1. The source’s view of the destination 2. Message interference 3. The destination’s view of the source 4. Perception 5. Multimeaning words .

307 Interpersonal Communication (con’t)
10/5/2017 COMMUNICATION Interpersonal Communication (con’t) How Interpersonal Communication Works (con’t) Barriers to Successful Interpersonal Communication (con’t) Strong concluded 500 words have 4,070 different definitions. Babe Ruth scored a run. Did you ever see Jesse Owens run? I have a run in my stocking. There is a fine run of salmon this year. Are you going to run this company or am I? You have the run of the place. What headline do you want to run? There was a run on the bank today. Did he run the ship aground? I have to run (drive the car) downtown. Who will run for president this year? Joe flies the New York–Chicago run twice a week. You know the kind of people they run around with. The apples run large this year. Please run my bath water. .

308 Interpersonal Communication (con’t)
10/5/2017 COMMUNICATION Interpersonal Communication (con’t) Feedback and Interpersonal Communication Gathering and Using Feedback Achieving Communication Effectiveness “Ten commandments of good communication”: 1. Seek to clarify your ideas before communicating 2. Examine the true purpose of each communication 3. Consider the total physical and human setting whenever you communicate 4. Consult with others, when appropriate, in planning communications 5. Be mindful of the overtones rather than merely the basic content 6. Take the opportunity to convey something of help or value to the receiver 7. Follow up your communication 8. Communicate for tomorrow as well as today 9. Be sure your actions support your communications 10. Seek not only to be understood but also to understand—be a good listener .

309 Interpersonal Communication (con’t)
10/5/2017 COMMUNICATION Interpersonal Communication (con’t) Verbal and Nonverbal Interpersonal Communication The Importance of Nonverbal Communication Mehrabian's formula: Total message impact = .07 words vocal tones facial expressions Nonverbal factors: Facial expressions Gestures Gender Dress .

310 Interpersonal Communication in Organizations
10/5/2017 COMMUNICATION Interpersonal Communication in Organizations Formal Organizational Communication Types of Formal Organizational Communication 1. Downward 2. Upward 3. Lateral Patterns of Formal Organizational Communication A communicates message to B B communicates interpretation of A’s message to C C communicates interpretation of B’s interpretation of A’s message to D Originator and ultimate recipient of message are separated by middle people .

311 10/5/2017 COMMUNICATION Comparison of three patterns of organizational communication on the variables of speed, accuracy, organization, emergence of leader, & morale Figure 14.5 .

312 Interpersonal Communication in Organizations (con’t)
10/5/2017 COMMUNICATION Interpersonal Communication in Organizations (con’t) Informal Organizational Communication Patterns of Informal Organizational Communication Grapevine: 1. Springs up and is used irregularly within the organization 2. Is not controlled by top executives, who may not even be able to influence it 3. Exists largely to serve the self-interests of the people within it .

313 Four types of organizational grapevines
10/5/2017 COMMUNICATION Four types of organizational grapevines Figure 14.6 .

314 Interpersonal Communication in Organizations (con’t)
10/5/2017 COMMUNICATION Interpersonal Communication in Organizations (con’t) Encouraging Formal Organizational Communication Listen attentively to messages that come through formal channels Support flow of clear and concise statements through formal channels Take care to ensure that all members have free access to formal channels Assign specific communication responsibilities to staff personnel .

315 Ten Commandments for Good Listening
10/5/2017 COMMUNICATION Table 14.2 Ten Commandments for Good Listening 1. Stop talking! You cannot listen if you are talking. Polonius (Hamlet): “Give every man thine ear, but few thy voice.” 2. Put the talker at ease. Help the talker feel free to talk. This is often called establishing a permissive environment. 3. Show the talker that you want to listen. Look and act interested. Do not read your mail while he or she talks. Listen to understand rather than to oppose. 4. Remove distractions. Do not doodle, top, or shuffle papers. Will it be quieter if you shut the door? 5. Empathize with the talker. Try to put yourself in the talker’s place so that you can see his or her point of view. 6. Be patient. Allow plenty of time. Do not interrupt the talker. Do not start for the door to walk away. 7. Hold your temper. An angry person gets the wrong meaning from words. 8. Go easy on argument and criticism. This puts the talker on the defensive. He or she may “clam up” or get angry. Do not argue: even if you win, you lose. 9. Ask questions. This encourages the talker and shows you are listening. It helps to develop points further. 10. Stop talking! This is the first and last commandment, because all other commandments depend on it. You just can’t do a good listening job while you are talking. Nature gave us two ears but only one tongue, which is a gentle hint that we should listen more than we talk. .

316 10/5/2017 Chapter Fourteen ? Questions

317 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

318 Ü Objectives A working definition of leadership
10/5/2017 Ü Objectives A working definition of leadership An understanding of the relationship between leading and managing An appreciation for the trait and situational approaches to leadership Insights into using leadership theories that emphasize decision- making situations Insights into using leadership theories that emphasize more general organizational situations An understanding of alternatives to leader flexibility An appreciation of emerging leader styles and leadership issues of today .

319 DEFINING LEADERSHIP Leader Versus Manager
10/5/2017 DEFINING LEADERSHIP Leader Versus Manager A manager makes sure that job gets done A leader cares about and focuses on people who do job To combine management and leadership requires: Demonstrating calculated and logical focus Genuine concern for workers as people .

320 The most effective managers over the long term are also leaders
10/5/2017 DEFINING LEADERSHIP The most effective managers over the long term are also leaders Figure 15.1 .

321 THE TRAIT APPROACH TO LEADERSHIP
10/5/2017 THE TRAIT APPROACH TO LEADERSHIP Leaders are born not made Early study summarized these traits for successful leaders: 1. Intelligence, including judgment and verbal ability 2. Past achievement in scholarship and athletics 3. Emotional maturity and stability 4. Dependability, persistence, and drive for continuing achievement 5. The skill to participate socially and adapt to various groups 6. A desire for status and socioeconomic position Leaders are made not born .

322 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR
10/5/2017 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR SL = f ( L, F, S ) where SL is successful leadership f stands for function of L, F, and S are Leader Follower Situation .

323 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR
10/5/2017 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR Leadership Situations and Decisions The Tannenbaum and Schmidt Leadership Continuum 1. The manager makes the decision and announces it (a) identifies problem (b) analyzes alternatives (c) chooses alternative (d) requires followers to implement alternative 2. The manager “sells” the decision 3. The manager presents ideas and invites questions 4. The manager presents a tentative decision that is subject to change 5. The manager presents the problem, gets suggestions, and then makes the decision 6. The manager defines the limits and asks the group to make a decision 7. The manager permits the group to make decisions within prescribed limits .

324 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR
10/5/2017 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR Continuum of leadership behavior that emphasizes decision making Figure 15.2 .

325 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR
10/5/2017 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR Leadership Situations and Decisions (con’t) Determining How to Make Decisions as a Leader 1. Forces in the Manager •Manager’s values •Personal leadership strengths •Level of confidence in subordinates •Tolerance for ambiguity 2. Forces in Subordinates •High need for independence •Readiness for decision making •High tolerance for ambiguity •Interest in problem and solving it •Understand and identify with organization’s goals •Necessary knowledge and experience to deal with problem •Expect to share in decision making 3. Forces in the Situation •Type of organization leader works •Problem to be solved •Effectiveness of group •Time available to make a decision .

326 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR
10/5/2017 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR Leadership Situations and Decisions (con’t) Determining How to Make Decisions as a Leader: An Update Affirmative action Pollution control The Vroom-Yetton-Jago Model 1. Organizational decisions should be of high quality 2. Subordinates should accept and be committed to decisions that are made Decision Styles Autocratic Consultative Group-focused Using the Model Leader starts at left of decision tree stating organizational problem Leader asks questions determined by tree until arriving at decision style at right .

327 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR
10/5/2017 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR The five decision styles available to a leader according to the Vroom-Yetton-Jago Model Figure 15.3 .

328 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR
10/5/2017 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR The Vroom-Yetton-Jago Model Figure 15.4 .

329 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR
10/5/2017 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR Leadership Behaviors The OSU Studies Structure behavior Consideration behavior Leadership Style The Michigan Studies Job-Centered Behavior Employee-Centered Behavior Effectiveness of Various Leadership Styles Comparing Styles The Hersey-Blanchard Life Cycle Theory of Leadership Maturity The Life Cycle Model Exceptions to the Model Applying Life Cycle Theory .

330 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR
10/5/2017 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR Four fundamental leadership styles based on structure behavior and consideration behavior Figure 15.5 .

331 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR
10/5/2017 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR The life cycle theory of leadership model Figure 15.6 .

332 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR
10/5/2017 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR Leadership Behaviors (con’t) Fiedler’s Contingency Theory Changing the Organization to Fit the Leader Leader–member relations Task structure Position power Fiedler's suggestions for actions to modify the leadership situation: 1. Change the individual’s task assignment 2. Change the leader’s position power 3. Change the leader–member relations in this group The Path-Goal Theory of Leadership Leadership Behavior 1. Directive behavior 2. Supportive behavior 3. Participative behavior 4. Achievement behavior Adapting Behavior to Situations .

333 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR
10/5/2017 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR Eight Combinations, or Octants, of Three Factors: Leader-Member Relations, Task Structure, and Leader Position Power Table 15.1 Octant Leader–Member Relations Task Structure Leader Position Power I Good High Strong II Good High Weak III Good Weak Strong IV Good Weak Weak V Moderately poor High Strong VI Moderately poor High Weak VII Moderately poor Weak Strong VIII Moderately poor Weak Weak .

334 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR
10/5/2017 THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER BEHAVIOR How effective leadership style varies with Fiedler’s eight octants Figure 15.7 .

335 Transformational Leadership
10/5/2017 LEADERSHIP TODAY Organizations emphasize leadership styles that: Concentrate on getting employees involved in the organization Giving them the freedom to use their abilities as they think best Transformational Leadership The Tasks of Transformational Leaders Coaching Coaching Behavior Listens closely Gives emotional support Shows by example what constitutes appropriate behavior .

336 LEADERSHIP TODAY Characteristics of the emerging leader versus
10/5/2017 LEADERSHIP TODAY Characteristics of the emerging leader versus characteristics of the manager Figure 15.8 .

337 Characteristics of an Effective Coach
10/5/2017 LEADERSHIP TODAY Table 15.2 Characteristics of an Effective Coach Trait, Attitude, or Behavior Action Plan for Improvement 1. Empathy (putting self in other person’s shoes) Sample: Will listen and understand person’s point of view. 2. Listening skill Sample: Will concentrate extra-hard on listening. 3. Insight into people (ability to size them up) Sample: Will jot down observations about people on first meeting, then verify in the future. 4. Diplomacy and tact Sample: Will study book of etiquette. 5. Patience toward people Sample: Will practice staying calm when someone makes a mistake. 6. Concern for welfare of people Sample: When interacting with another person, will ask myself,“How can this person’s interests best be served?” 7. Minimum hostility toward people Sample: Will often ask myself, “Why am I angry at this person?” 8. Self-confidence and emotional stability Sample: Will attempt to have at least one personal success each week. 9. Noncompetitiveness with team members Sample: Will keep reminding myself that all boats rise with the same tide. 10. Enthusiasm for people Sample: Will search for the good in each person. .

338 Entrepreneurial Leadership
10/5/2017 LEADERSHIP TODAY Superleadership Teaches followers to: Think on their own and act constructively and independently Replace negative thoughts and beliefs with positive Build self-confidence Entrepreneurial Leadership .

339 LEADERSHIP TODAY Various combinations of transformational, coaching,
10/5/2017 LEADERSHIP TODAY Various combinations of transformational, coaching, superleader, and entrepreneurial leadership styles Figure 15.9 .

340 CURRENT TOPICS IN LEADERSHIP
10/5/2017 CURRENT TOPICS IN LEADERSHIP Substitutes for Leadership Leader's input canceled by characteristics of subordinates or organization Women as Leaders Numbers increasing Glass ceiling Ways Women Lead Formerly modeled on successful male managers Today it's described as transformational .

341 10/5/2017 Chapter Fifteen ? Questions

342 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

343 Ü Objectives A basic understanding of human motivation
10/5/2017 Ü Objectives A basic understanding of human motivation Insights into various human needs An appreciation for the importance of motivating organization members An understanding of various motivation strategies .

344 THE MOTIVATION PROCESS
10/5/2017 THE MOTIVATION PROCESS Defining Motivation Process Theories of Motivation The Needs-Goal Theory of Motivation The Role of Individual Needs The Vroom Expectancy Theory of Motivation Motivation and Perceptions .

345 THE MOTIVATION PROCESS
10/5/2017 THE MOTIVATION PROCESS The needs-goal theory of motivation Figure 16.1 .

346 THE MOTIVATION PROCESS
10/5/2017 THE MOTIVATION PROCESS Vroom’s expectancy theory of motivation in equation form Figure 16.2 .

347 THE MOTIVATION PROCESS
10/5/2017 THE MOTIVATION PROCESS Process Theories of Motivation (con’t) Equity Theory of Motivation Adams found these reactions to right an inequity: 1. Change work inputs 2. Change compensation 3. Change perception of inequality 4. Quit job Perceptions of inequities can arise in: Work assignments Promotions Ratings reports Office assignments Pay (most often) .

348 THE MOTIVATION PROCESS
10/5/2017 THE MOTIVATION PROCESS Process Theories of Motivation (con’t) The Porter-Lawler Theory of Motivation Consistent with Needs-Goal and Vroom Expectancy theories but provides a more complete description The Motivation Process In addition Porter-Lawler stresses: 1. Perceived value determined by both intrinsic and extrinsic rewards 2. Task accomplishment determined by: •Perception of requirements to perform task •Ability to perform task 3. Perceived fairness influences amount of satisfaction .

349 THE MOTIVATION PROCESS
10/5/2017 THE MOTIVATION PROCESS The Porter-Lawler theory of motivation Figure 16.3 .

350 THE MOTIVATION PROCESS
10/5/2017 THE MOTIVATION PROCESS Content Theories of Motivation: Human Needs Maslow’s Hierarchy of Needs Physiological Security or safety Social Esteem Self-actualization Alderfer’s ERG Theory 1. Existence 2. Relatedness 3. Growth .

351 THE MOTIVATION PROCESS
10/5/2017 THE MOTIVATION PROCESS Maslow’s hierarchy of needs Figure 16.4 .

352 THE MOTIVATION PROCESS
10/5/2017 THE MOTIVATION PROCESS Content Theories of Motivation: Human Needs (con’t) Argyris’ Maturity-Immaturity Continuum From infant’s To adult’s 1. State of passivity State of increasing activity 2. State of dependence on others State of relative independence 3. Being capable of behaving Being capable of behaving only in a few ways in many different ways 4. Having erratic, casual, shallow, Having deeper, more lasting interests and quickly dropped interests 5. Having a short time perspective Having much longer time perspective 6. Being in a subordinate position Aspiring to occupy equal / superordinate 7. Lack of self-awareness Awareness and control over self .

353 THE MOTIVATION PROCESS
10/5/2017 THE MOTIVATION PROCESS Content Theories of Motivation: Human Needs (con’t) McClelland’s Acquired Needs Theory Need for Achievement (nAch) Need for Power (nPower) Need for Affiliation (nAff) .

354 MOTIVATING ORGANIZATION MEMBERS
10/5/2017 MOTIVATING ORGANIZATION MEMBERS The Importance of Motivating Organization Members Strategies for Motivating Organization Members Managerial Communication Theory X–Theory Y .

355 MOTIVATING ORGANIZATION MEMBERS
10/5/2017 MOTIVATING ORGANIZATION MEMBERS Unsatisfied needs of organization members resulting in either appropriate or inappropriate behavior Figure 16.5 .

356 MOTIVATING ORGANIZATION MEMBERS
10/5/2017 MOTIVATING ORGANIZATION MEMBERS Strategies for Motivating Organization Members (con’t) Job Design Earlier Job Design Strategies Job Rotation Job Enlargement Job Enrichment Hygiene Motivating Job Enrichment and Productivity Flextime Advantages of Flextime .

357 MOTIVATING ORGANIZATION MEMBERS
10/5/2017 MOTIVATING ORGANIZATION MEMBERS Table 16.1 Herzberg’s Hygiene Factors and Motivators Dissatisfaction: Satisfaction: Hygiene or Maintenance Factors Motivating Factors 1. Company policy and administration 1. Opportunity for achievement 2. Supervision 2. Opportunity for recognition 3. Relationship with supervisor 3. Work itself 4. Relationship with peers 4. Responsibility 5. Working conditions 5. Advancement 6. Salary 6. Personal growth 7. Relationship with subordinates .

358 MOTIVATING ORGANIZATION MEMBERS
10/5/2017 MOTIVATING ORGANIZATION MEMBERS Needs in Maslow’s hierarchy of needs that desirable hygiene and motivating factors generally satisfy Figure 16.6 .

359 MOTIVATING ORGANIZATION MEMBERS
10/5/2017 MOTIVATING ORGANIZATION MEMBERS Table 16.2 Advantages and Disadvantages of Using Flextime Programs Advantages Improved employee attitude and morale Accommodation of working parents Decreased tardiness Fewer commuting problems—workers can avoid congested streets and highways Accommodation of those who wish to arrive at work before normal workday interruptions begin Increased production Facilitation of employees scheduling of medical, dental, and other types of appointments Accommodation of leisure-time activities of employees Decreased absenteeism Decreased turnover Disadvantages Lack of supervision during some hours of work Key people unavailable at certain times Understaffing at times Problem of accommodating employees whose output is the input for other employees Employee abuse of flextime program Difficulty in planning work schedules Problem of keeping track of hours worked or accumulated Inability to schedule meetings at convenient times Inability to coordinate projects .

360 MOTIVATING ORGANIZATION MEMBERS
10/5/2017 MOTIVATING ORGANIZATION MEMBERS Strategies for Motivating Organization Members (con’t) Behavior Modification Reinforcement Positive Negative Punishment Applying Behavior Modification Feedback system Other successful behavior modifications are: 1. Giving different rewards according to performance 2. Telling workers what they are doing wrong 3. Punishing workers privately 4. Always giving out earned rewards and punishments .

361 MOTIVATING ORGANIZATION MEMBERS
10/5/2017 MOTIVATING ORGANIZATION MEMBERS Strategies for Motivating Organization Members (con’t) Likert’s Management Systems System 1—Lack of confidence or trust in subordinates System 2—Condescending master-to servant style confidence and trust System 3—Substantial confidence System 4—Complete trust and confidence Styles, Systems, and Productivity Monetary Incentives Nonmonetary Incentives .

362 MOTIVATING ORGANIZATION MEMBERS
10/5/2017 MOTIVATING ORGANIZATION MEMBERS Comparative long-term and short-term effects of system 1 and system 4 on organizational production Figure 16.7 .

363 10/5/2017 Chapter Sixteen ? Questions

364 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

365 10/5/2017 Ü Objectives A definition of the term group as used in the context of management A thorough understanding of the difference between formal and informal groups Knowledge of the types of formal groups that exist in organizations An understanding of how managers can determine which groups exist in an organization An appreciation for what teams are and how to manage them Insights into managing corporate culture to enhance organizational success .

366 GROUPS (1) Interact with one another
10/5/2017 GROUPS (1) Interact with one another (2) Psychologically aware of one another (3) Perceive themselves to be a group In addition, Cartwright’s and Lippitt’s reasons why managers should study groups: 1. Groups exist in all kinds of organizations 2. Groups inevitably form in all facets of organizational existence 3. Groups can cause either desirable or undesirable consequences within organization 4. Understanding raises probability that groups will cause desirable consequences within organization .

367 KINDS OF GROUPS IN ORGANIZATIONS
10/5/2017 KINDS OF GROUPS IN ORGANIZATIONS Formal Groups Kinds of Formal Groups Command groups Task groups .

368 KINDS OF GROUPS IN ORGANIZATIONS
10/5/2017 KINDS OF GROUPS IN ORGANIZATIONS A formal group Figure 17.1 .

369 KINDS OF GROUPS IN ORGANIZATIONS
10/5/2017 KINDS OF GROUPS IN ORGANIZATIONS Formal Groups (con’t) Examples of Formal Groups Committees Major reasons for establishing committees: 1. To allow organization members to exchange ideas 2. Generate suggestions and recommendations to offer to other units 3. To develop new ideas for solving existing organizational problems 4. To assist in the development of organizational policies Why Managers should Use Committees Improve quality of decision making Encourage expression of honest opinions Increase participation in decision-making Ensure representation of important groups .

370 KINDS OF GROUPS IN ORGANIZATIONS
10/5/2017 KINDS OF GROUPS IN ORGANIZATIONS Percent of companies that have committees, by size of company Figure 17.2 .

371 KINDS OF GROUPS IN ORGANIZATIONS
10/5/2017 KINDS OF GROUPS IN ORGANIZATIONS Formal Groups (con’t) Examples of Formal Groups (con’t) Committees (con’t) What Makes Committees Successful Procedural Steps Clearly define committee’s goals in writing Specify committee’s authority Determine optimum size of committee Select chairperson on basis of ability to run efficient meeting Appoint permanent secretary to handle communications Distribute agenda and all supporting material before meeting Start meetings on time and announce ending time at outset .

372 KINDS OF GROUPS IN ORGANIZATIONS
10/5/2017 KINDS OF GROUPS IN ORGANIZATIONS Formal Groups (con’t) Examples of Formal Groups (con’t) Committees (con’t) People-Oriented Guidelines Rephrasing ideas already expressed Bringing all members into active participation Stimulating further thought by members Groupthink Work Teams Special-Purpose and Self-Managed Teams .

373 KINDS OF GROUPS IN ORGANIZATIONS
10/5/2017 KINDS OF GROUPS IN ORGANIZATIONS Formal Groups (con’t) Stages of Formal Group Development The Acceptance Stage The Communication and Decision-Making Stage The Group Solidarity Stage The Group Control Stage Members function as a unit Members participate effectively in group effort Members oriented toward single goal Members have equipment, tools, and skills necessary to attain group’s goals Members ask and receive suggestions, opinions, and information from one another .

374 KINDS OF GROUPS IN ORGANIZATIONS
10/5/2017 KINDS OF GROUPS IN ORGANIZATIONS Informal Groups Kinds of Informal Groups Interest groups Friendship groups Benefits of Informal Group Membership 1. Perpetuation of social and cultural values 2. Status and social satisfaction 3. Increased ease of communication 4. Increased desirability of overall environment .

375 KINDS OF GROUPS IN ORGANIZATIONS
10/5/2017 KINDS OF GROUPS IN ORGANIZATIONS Three informal groups that deviate significantly from formal groups within the organization Figure 17.3 .

376 MANAGING WORK GROUPS Determining Group Existence
10/5/2017 MANAGING WORK GROUPS Determining Group Existence Sociometric Analysis Applying the Sociogram Model Understanding the Evolution of Informal Groups Homans’ Model Applying the Homans’ Model .

377 10/5/2017 MANAGING WORK GROUPS Sample sociograms Figure 17.4 .

378 Homans’ ideas on how informal groups develop
10/5/2017 MANAGING WORK GROUPS Homans’ ideas on how informal groups develop Figure 17.5 .

379 TEAMS Groups Versus Teams Types of Teams in Organizations
10/5/2017 TEAMS Groups Versus Teams Not all groups are teams but all teams are groups Types of Teams in Organizations Problem-Solving Teams Self-Managed Teams Cross-functional Teams .

380 TEAMS Possible team types based on various combinations of
10/5/2017 TEAMS Possible team types based on various combinations of self-directed, problem-solving, and cross-functional teams Figure 17.6 .

381 Stages of Team Development
10/5/2017 TEAMS Stages of Team Development Forming Storming Norming Performing Adjourning .

382 Factors contributing to team effectiveness
10/5/2017 TEAMS Factors contributing to team effectiveness Figure 17.7 .

383 TEAMS Team Effectiveness People-related steps:
10/5/2017 TEAMS Team Effectiveness People-related steps: 1. Trying to make the team’s work satisfying 2. Developing mutual trust among team members and between the team and management 3. Building good communication—from management to the team as well as within the team 4. Minimizing unresolved conflicts and power struggles within the team 5. Dealing effectively with threats toward and within the team 6. Building the perception that the jobs of team members are secure .

384 Team Effectiveness (con’t)
10/5/2017 TEAMS Team Effectiveness (con’t) Organization-related steps: 1. Building a stable overall organization or company structure that team members view as secure 2. Becoming involved in team events and demonstrating interest in team progress and functioning 3. Properly rewarding and recognizing teams for their accomplishments 4. Setting stable goals and priorities for the team .

385 Team Effectiveness (con’t)
10/5/2017 TEAMS Team Effectiveness (con’t) Task-related steps: 1. Developing clear objectives, directions, and project plans for the team 2. Providing proper technical direction and leadership for the team 3. Establishing autonomy for the team and challenging work within the team 4. Appointing experienced and qualified team personnel 5. Encouraging team involvement 6. Building visibility within the organization for the team’s work .

386 Trust and Effective Teams
10/5/2017 TEAMS Trust and Effective Teams Communicate often to team members Show respect for team members Be fair to team members Be predictable Demonstrate competence .

387 CORPORATE CULTURE Status Symbols Traditions and History
10/5/2017 CORPORATE CULTURE Status Symbols Traditions and History Physical Environment The Significance of Corporate Culture What leaders pay attention to, measure, and control Leaders’ reactions to critical incidents and organizational crises Deliberate role modeling, teaching, and coaching Criteria for allocation of rewards and status Criteria for recruitment, selection, promotion, and retirement of employees .

388 10/5/2017 Chapter Seventeen ? Questions

389 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

390 Ü Objectives An understanding of employee workplace attitudes
10/5/2017 Ü Objectives An understanding of employee workplace attitudes Insights into how to change employee attitudes An appreciation of the impact of employee perceptions on employee behaviors Knowledge of employee perceptions of procedural justice An understanding that adult learners are different from younger students .

391 How Beliefs and Values Create Attitudes
10/5/2017 WHAT ARE ATTITUDES? Components of attitudes: 1. Cognitive 2. Affective 3. Behavioral How Beliefs and Values Create Attitudes .

392 10/5/2017 WHAT ARE ATTITUDES? Situation: Based on personal attitudes, beliefs, and values, a manager decides to deny a request for new software Figure 18.1 .

393 WHAT ARE ATTITUDES? Attitude Surveys Theory of Reasoned Action
10/5/2017 WHAT ARE ATTITUDES? Attitude Surveys Theory of Reasoned Action Best predictors of intention: 1. Attitude toward performance 2. Subjective norm Employee Attitudes Determinations of employee attitudes: Job design Social influence Dispositional Attitude Theory and Reasoned Action .

394 Theory of reasoned action
10/5/2017 WHAT ARE ATTITUDES? Theory of reasoned action Figure 18.2 .

395 10/5/2017 WHAT ARE ATTITUDES? Three theories of job attitudes applied to the theory of reasoned action Figure 18.3 .

396 Attitude Surveys (con’t)
10/5/2017 WHAT ARE ATTITUDES? Attitude Surveys (con’t) Changing Attitudes Best predictors of behaviors and attitudes: 1. A person’s beliefs 2. The social norms that influence a person’s intentions Human Resource Approach Belief that employers care fosters: More positive attitudes Reduced absenteeism Increased quality and productivity Greater creative input Why managers should not focus too sharply on attitudes: 1. Attitudes are internal and cannot be accurately measured or observed 2. Beliefs, values, and norms that affect attitudes are complex and have been constructed over a lifetime .

397 Basic Principles of the Human Resource Approach
10/5/2017 WHAT ARE ATTITUDES? Table 18.1 Basic Principles of the Human Resource Approach Providing employee training Communicating about human resource programs and policies Helping new employees learn about their job and the company Providing advancement opportunities within the company Providing job security Hiring qualified employees Having enough people to get the job done Asking my opinions about how one can improve one’s own job Asking my opinion about making the company successful Asking for employee suggestions Acting on employee suggestions .

398 Attitude Surveys (con’t)
10/5/2017 WHAT ARE ATTITUDES? Attitude Surveys (con’t) Changing Attitudes (con’t) Human Resource Approach (con’t) Major causes of behavior problems: 1. Lack of Skills Remedies: a) Train employee to remove skill deficiency b) Transfer employee to job that better uses current skills c) Terminate employee 2. Lack of Positive Attitude Remedy: Determine what employee needs and offer it as a reward 3. Rule Breaking Remedy: Apply positive discipline 4. Personal Problems .

399 Perception and the Perceptual Process
10/5/2017 PERCEPTION Perception and the Perceptual Process Bombarded by countless stimuli Respond, select and process only a small portion of stimuli Not aware of everything that occurs around us Filter stimuli through past experiences, attitudes, and beliefs Ignore and distort inconsistencies Become “closed-minded” .

400 10/5/2017 PERCEPTION Process of perception Figure 18.4 .

401 PERCEPTION Attribution Theory: Interpreting the Behavior of Others
10/5/2017 PERCEPTION Attribution Theory: Interpreting the Behavior of Others Managers can avoid inappropriate attributions by: 1. Making a greater effort to see situations as they are perceived by others 2. Guarding against perceptual distortions 3. Paying more attention to individual differences among subordinates Causes: Internal External Focus for making attributions: 1. Consensus 2. Consistency 3. Distinctiveness .

402 PERCEPTION Attribution Theory: Interpreting the Behavior of Others
10/5/2017 PERCEPTION Attribution Theory: Interpreting the Behavior of Others (con’t) Attribute behavior to external causes: 1. If other employees behave the same way 2. If the employee has behaved the same way in similar situations in the past 3. If this behavior is highly unusual or distinctive Attribute behavior to internal causes: 1. If other employees do not behave in the same manner 2. If employee usually behaves in the same manner .

403 Perceptual Distortions
10/5/2017 PERCEPTION Perceptual Distortions Stereotypes Halo Effect Projection Self-Serving Bias and Attribution Error Selective Perception Recency .

404 Perceptions of Procedural Justice
10/5/2017 PERCEPTION Perceptions of Procedural Justice Procedures and Outcomes Dispute Resolution Employee Responses Measuring Employee Attitudes .

405 LEARNING Operant Learning Cognitive Learning Goal-Setting Strategies
10/5/2017 LEARNING Operant Learning Cognitive Learning Goal-Setting Strategies Advantages: 1. Directed Behavior 2. Challenges 3. Resource Allocation 4. Structure Goal Setting and Problem Solving .

406 LEARNING Learning Strategies Reinforcement Strategy
10/5/2017 LEARNING Learning Strategies Reinforcement Strategy 1. Positive Reinforcement 2. Avoidance Strategy 3. Escape Strategy 4. Punishment Strategy .

407 10/5/2017 Chapter Eighteen ? Questions

408 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

409 Ü Objectives A definition of control
10/5/2017 Ü Objectives A definition of control A thorough understanding of the controlling subsystem An appreciation for various kinds of control and for how each kind can be used advantageously by managers Insights into the relationship between power and control Knowledge of the various potential barriers that must be overcome to implement successful control An understanding of steps that can be taken to increase the quality of a controlling subsystem .

410 THE FUNDAMENTALS OF CONTROLLING
10/5/2017 THE FUNDAMENTALS OF CONTROLLING Defining Control Defining Controlling The Controlling Subsystem The Controlling Process Measuring Performance How to Measure What to Measure .

411 THE FUNDAMENTALS OF CONTROLLING
10/5/2017 THE FUNDAMENTALS OF CONTROLLING Relationship between overall management system and controlling subsystem Figure 19.1 .

412 THE FUNDAMENTALS OF CONTROLLING
10/5/2017 THE FUNDAMENTALS OF CONTROLLING The controlling subsystem Figure 19.2 .

413 THE FUNDAMENTALS OF CONTROLLING
10/5/2017 THE FUNDAMENTALS OF CONTROLLING Defining Controlling (con’t) The Controlling Process (con’t) Comparing Measured Performance to Standards GE's standards: 1. Profitability standards 2. Market position standards 3. Productivity standards 4. Product leadership standards 5. Personnel development standards 6. Employee attitudes standards 7. Social responsibility standards 8. Standards reflecting relative balance between short- and long-range goals American Airlines standards: 1. 95% accuracy on posted flight arrival times 2. No more than 5 minute wait for 85% of customers at ticket counter .

414 THE FUNDAMENTALS OF CONTROLLING
10/5/2017 THE FUNDAMENTALS OF CONTROLLING Defining Controlling (con’t) The Controlling Process (con’t) Taking Corrective Action Recognizing Problems Recognizing Symptoms .

415 THE FUNDAMENTALS OF CONTROLLING
10/5/2017 THE FUNDAMENTALS OF CONTROLLING Types of Control Precontrol Concurrent Control Feedback Control .

416 THE CONTROLLER AND CONTROL
10/5/2017 THE CONTROLLER AND CONTROL The Job of the Controller Works with these organizational financial dimensions: 1. Profits 2. Revenues 3. Costs 4. Investments 5. Discretionary expenses How Much Control Is Needed? Cost-benefit analysis .

417 THE CONTROLLER AND CONTROL
10/5/2017 THE CONTROLLER AND CONTROL Sample Job Description for a Controller in a Large Company (part 1 of 2) Table 19.1 Objectives The controller (or comptroller) is responsible for all accounting activities within the organization. Functions 1. General accounting—Maintain the company’s accounting books, accounting records, and forms. This includes: a. Preparing balance sheets, income statements, and other statements and reports b. Giving the president interim reports on operations for the recent quarter and fiscal year to date c. Supervising the preparation and filing of reports to the SEC 2. Budgeting—Prepare a budget outlining the company’s future operations and cash requirements. 3. Cost accounting—Determine the cost to manufacture a product and prepare internal reports for management of the processing divisions. This includes: a. Developing standard costs b. Accumulating actual cost data c. Preparing reports that compare standard costs to actual costs and highlight unfavorable differences .

418 THE CONTROLLER AND CONTROL
10/5/2017 THE CONTROLLER AND CONTROL Sample Job Description for a Controller in a Large Company (part 2 of 2) Table 19.1 4. Performance reporting—Identify individuals in the organization who control activities and prepare reports to show how well or how poorly they perform. 5. Data processing—Assist in the analysis and design of a computer-based information system. Frequently, the data-processing department is under the controller, and the controller is involved in management of that department as well as other communications equipment. 6. Other duties—Other duties may be assigned to the controller by the president or by corporate bylaws. Some of these include: a. Tax planning and reporting b. Service departments such as mailing, telephone, janitors, and filing c. Forecasting d. Corporate social relations and obligations Relationship The controller reports to the vice president of finance. .

419 THE CONTROLLER AND CONTROL
10/5/2017 THE CONTROLLER AND CONTROL Value of additional controlling Figure 19.3 .

420 POWER AND CONTROL A Definition of Power Total Power of a Manager
10/5/2017 POWER AND CONTROL A Definition of Power Total Power of a Manager Position power Personal power Steps for Increasing Total Power 1. Sense of obligation toward manager 2. Belief that manager possesses high level of expertise 3. Sense of identification with manager 4. Perception of dependency on manager .

421 PERFORMING THE CONTROL FUNCTION
10/5/2017 PERFORMING THE CONTROL FUNCTION Potential Barriers to Successful Controlling Long-Term Versus Short-Term Production Employee Frustration and Morale Filing of Reports Perspective of Organization Members Mean Versus Ends .

422 PERFORMING THE CONTROL FUNCTION
10/5/2017 PERFORMING THE CONTROL FUNCTION Making Controlling Successful Specific Organizational Activities Being Focused On Different Kinds of Organizational Goals Timely Corrective Action Communication of the Mechanics of the Control Process .

423 10/5/2017 Chapter Nineteen ? Questions

424 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

425 Ü Objectives Definitions of production, productivity, and quality
10/5/2017 Ü Objectives Definitions of production, productivity, and quality An understanding of the importance of operations and production strategies, systems, and processes Insights into the role of operations management concepts in the workplace An understanding of how operations control procedures can be used to control production Insights into operations control tools and how they evolve into a continual improvement approach to production management and control .

426 PRODUCTION Defining Production Productivity productivity = outputs
10/5/2017 PRODUCTION Defining Production Productivity productivity = outputs inputs Traditional strategies for increasing productivity: 1. Improving effectiveness of organizational workforce through training 2. Improving production process through automation 3. Improving product design to make products easier to assemble 4. Improving production facility by purchasing more modern equipment 5. Improving quality of workers hired to fill open positions .

427 PRODUCTION Quality and Productivity Automation
10/5/2017 PRODUCTION Quality and Productivity Focus on Continual Improvement Focus on Quality and Integrated Operations Quality Assurance Statistical Quality Control "No Rejects" Philosophy Quality Circles Automation Strategies, Systems, and Processes .

428 Deming’s flow diagram for improving product quality
10/5/2017 PRODUCTION Deming’s flow diagram for improving product quality Figure 20.1 .

429 The quality circle problem-solving process
10/5/2017 PRODUCTION The quality circle problem-solving process Figure 20.2 .

430 OPERATIONS MANAGEMENT
10/5/2017 OPERATIONS MANAGEMENT Defining Operations Management Operations Management Considerations Key notions: Involves managers Takes place within context of objectives and policies Criteria are standards for effectiveness and efficiency Operations strategies .

431 OPERATIONS MANAGEMENT
10/5/2017 OPERATIONS MANAGEMENT Major activities performed to manage production Figure 20.3 .

432 OPERATIONS MANAGEMENT
10/5/2017 OPERATIONS MANAGEMENT Operations Management Considerations (con’t) Capacity Strategy Capacity flexibility Steps in Capacity Decisions: 1. Measure capacity of currently available facilities 2. Estimate future capacity needs on basis of demand forecasts 3. Compare future capacity needs and available capacity 4. Identify ways to accommodate long-range capacity changes 5. Select best alternative based on quantitative and qualitative evaluation .

433 OPERATIONS MANAGEMENT
10/5/2017 OPERATIONS MANAGEMENT Operations Management Considerations (con’t) Location Strategy Factors in a Good Location Nearness to market and distribution centers Nearness to vendors and resources Requirements of federal, state, and local governments The character of direct competition The degree of interaction with the rest of the corporation The quality and quantity of labor pools The environmental attractiveness of the area Taxes and financing requirements Existing and potential transportation The quality of utilities and services .

434 OPERATIONS MANAGEMENT
10/5/2017 OPERATIONS MANAGEMENT Operations Management Considerations (con’t) Product Strategy Process Strategy Types of Processes Continuous process Repetitive process Job-shop process Layout Strategy Basic types for manufacturing facilities: 1. Product 2. Process (functional) 3. Fixed-position .

435 OPERATIONS MANAGEMENT
10/5/2017 OPERATIONS MANAGEMENT The three basic layout patterns Figure 20.4 .

436 OPERATIONS MANAGEMENT
10/5/2017 OPERATIONS MANAGEMENT Operations Management Considerations (con’t) Human Resources Strategy Human resource imperatives: 1. Optimize individual, group, and organizational effectiveness 2. Enhance quality of organizational life Operational Tools in Human Resources Strategy Manpower planning Job design Work methods analysis Motion-study techniques Work measurement methods Operational tools to establish labor standards .

437 Just-in-Time Inventory Control
10/5/2017 OPERATIONS CONTROL Just-in-Time Inventory Control Best Conditions for JIT Advantages of JIT Characteristics of JIT 1. Closeness of suppliers 2. High quality of materials purchased from suppliers 3. Well-organized receiving and handling of materials 4. Strong management commitment Maintenance Control Pure-preventive maintenance policy Pure-breakdown policy .

438 OPERATIONS CONTROL Cost Control Stages in Cost Control
10/5/2017 OPERATIONS CONTROL Cost Control Stages in Cost Control 1. Establishing standard or planned cost amounts 2. Measuring actual costs incurred 3. Comparing planned costs to incurred costs 4. Making changes to reduce actual costs to planned costs Following above stages: Establish planned costs for labor, materials, and overhead Measure or calculate costs incurred for these activities Compare actual operations costs to planned operations costs Take steps to reduce actual operations costs to planned levels .

439 OPERATIONS CONTROL Budgetary Control Potential Pitfalls of Budgets
10/5/2017 OPERATIONS CONTROL Budgetary Control Potential Pitfalls of Budgets 1. Placing too much emphasis on insignificant expenses 2. Increasing expenses without adequate information • Zero-base budgeting 3. Ignoring fact that budgets must be changed periodically • Variable budget Human Relations Considerations in Using Budgets Reducing Human Relations Problems .

440 OPERATIONS CONTROL Ratio Analysis
10/5/2017 OPERATIONS CONTROL Ratio Analysis 1. Liquidity ratios 2. Leverage ratios 3. Activity ratios 4. Profitability ratios Using Ratios to Control Organizations Evaluate all ratios simultaneously Compare computed values with industry averages Incorporate trend analysis .

441 Four Categories of Ratios
10/5/2017 OPERATIONS CONTROL Table 20.1 Four Categories of Ratios Type Example Calculation Interpretation Profitability Return on investment (ROI) Profit after taxes Productivity of assets Total assets Liquidity Current ratio Current assets Short-term solvency Current liabilities Activity Inventory turnover Sales Efficiency of inventory Inventory management Leverage Debt ratio Total debt How a company finances itself .

442 OPERATIONS CONTROL Materials Control Procurement of Materials
10/5/2017 OPERATIONS CONTROL Materials Control Procurement of Materials Receiving, Shipping, and Trafficking Receiving activities include: •Unloading •Identifying •Inspecting •Reporting •Storing inbound shipments Shipping and distribution activities include: •Preparing documents •Packaging •Labeling •Loading •Directing out shipments Shipping and receiving are organized as one unit Traffic manager’s main responsibilities are: •Selection of the transportation mode •Coordination of the arrival and departure of shipments •Auditing freight bills .

443 Materials Control (con’t)
10/5/2017 OPERATIONS CONTROL Materials Control (con’t) Inventory and Shop-Floor Control Inventory control subsystems: •Work-in-process •Finished-goods inventory Inventory control specifies: •What •When •How much to buy Shop-floor control activities include: •Input/output control •Routing •Scheduling •Dispatching •Sequencing •Expediting .

444 SELECTED OPERATIONS CONTROL TOOLS
10/5/2017 SELECTED OPERATIONS CONTROL TOOLS Using Control Tools to Control Organizations Inspection To Inspect or Not to Inspect Management by Exception Establishing Rules Examples of rules based on exception principle: A department manger must immediately inform the plant manager if actual: 1. Weekly labor costs exceed estimated weekly labor costs by more than 15% 2. Dollars spent on a special project exceed funds approved by more than 10% .

445 SELECTED OPERATIONS CONTROL TOOLS
10/5/2017 SELECTED OPERATIONS CONTROL TOOLS Management by Objectives Break-Even Analysis Basic Ingredients of Break-Even Analysis Break-even analysis typically involves: •Reflection •Discussion •Reasoning •Decision making Relative to major aspects of production: 1. Fixed costs 3. Total costs 5. Profits 7. Breakeven 2. Variable costs 4. Total revenue 6. Loss point Types of Break-Even Analysis Algebraic Break-even Analysis BE = FC (P – VC) Graphic Break-even Analysis Advantages of Using the Algebraic and Graphic Break-even Methods Control and Break-even Analysis .

446 SELECTED OPERATIONS CONTROL TOOLS
10/5/2017 SELECTED OPERATIONS CONTROL TOOLS Table 20.2 Fixed costs and Variable Costs for a Book Publisher Fixed Costs (Yearly Basis) Variable Costs per Book Sold 1. Real estate taxes on property $1, Printing $2.00 2. Interest on loan to purchase equipment 5, Artwork 1.00 3. Building maintenance 2, Sales commission .50 4. Insurance Author royalties 1.50 5. Salaried labor 80, Binding 1.00 Total fixed costs $88,800 Total variable costs per book $6.00 .

447 SELECTED OPERATIONS CONTROL TOOLS
10/5/2017 SELECTED OPERATIONS CONTROL TOOLS Break-even analysis for a book publisher Figure 20.5 .

448 SELECTED OPERATIONS CONTROL TOOLS
10/5/2017 SELECTED OPERATIONS CONTROL TOOLS Other Broad Operations Control Tools Decision Tree Analysis Process Control Value Analysis Computer-Aided Design (CAD) Computer Graphics Computer-aided engineering (CAE) Computer-Aided Manufacturing (CAM) .

449 10/5/2017 Chapter Twenty ? Questions

450 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

451 10/5/2017 Ü Objectives An understanding of the relationship between data and information Insights into the main factors that influence the value of information Knowledge of some potential steps for evaluating information An understanding of the importance of a management information system (MIS) to an organization A feasible strategy for establishing an MIS Information about what a management decision support system is and how it operates An appreciation for the roles of computers and networks like the Internet in handling information .

452 ESSENTIALS OF INFORMATION
10/5/2017 ESSENTIALS OF INFORMATION Data Information Factors Influencing the Value of Information Information Appropriateness Common decision-making situations: 1. Operational control 2. Management control 3. Strategic planning Operational Control, Management Control, and Strategic Planning Decisions .

453 ESSENTIALS OF INFORMATION
10/5/2017 ESSENTIALS OF INFORMATION Characteristics of information appropriate for decisions related to operational control, management control, and strategic planning Figure 21.1 .

454 ESSENTIALS OF INFORMATION
10/5/2017 ESSENTIALS OF INFORMATION Information Quality Data contamination Information Timeliness Information Quantity Evaluating Information Identifying and Evaluating Data Evaluating the Cost of Data .

455 ESSENTIALS OF INFORMATION
10/5/2017 ESSENTIALS OF INFORMATION Flowchart of main activities in evaluating information Figure 21.2 .

456 THE MANAGEMENT INFORMATION SYSTEM (MIS)
10/5/2017 THE MANAGEMENT INFORMATION SYSTEM (MIS) Describing the MIS Operating the MIS Sequential steps MIS personnel perform to operate MIS I. Information to determine: •What’s needed •When is it needed •What form Management information needs: 1. Decision areas in which management makes decisions 2. Specific decisions that management must actually make 3. Alternatives that must be evaluated to make these specific decisions II. Pinpoint and collect data that yields needed organizational information III. Summarize data IV. Analyze data V. Transmit information generated by data analysis to appropriate managers VI. Get managers to actually use information Different Managers Need Different Kinds of Information .

457 THE MANAGEMENT INFORMATION SYSTEM (MIS)
10/5/2017 THE MANAGEMENT INFORMATION SYSTEM (MIS) The six steps necessary to operate an MIS properly in order of their performance Figure 21.3 .

458 THE MANAGEMENT INFORMATION SYSTEM (MIS)
10/5/2017 THE MANAGEMENT INFORMATION SYSTEM (MIS) Establishing an MIS Planning for the MIS Designing the MIS Analyzing Managers’ Decisions Stoller and Van Horn suggest: 1. Defining various decisions that must be made to run an organization 2. Determining existing management policies that influence decision-making 3. Pinpointing types of data needed to make these decisions 4. Establishing mechanism for gathering and appropriately processing data Implementing the MIS Enlisting Management Support .

459 THE MANAGEMENT INFORMATION SYSTEM (MIS)
10/5/2017 THE MANAGEMENT INFORMATION SYSTEM (MIS) Appropriate MIS Information under various sets of organizational circumstances Figure 21.4 .

460 THE MANAGEMENT INFORMATION SYSTEM (MIS)
10/5/2017 THE MANAGEMENT INFORMATION SYSTEM (MIS) Plan for establishing a hypothetical MIS Figure 21.5 .

461 THE MANAGEMENT INFORMATION SYSTEM (MIS)
10/5/2017 THE MANAGEMENT INFORMATION SYSTEM (MIS) Establishing an MIS (con’t) Improving the MIS Symptoms of an Inadequate MIS Colbert divides symptoms into: 1. Operational 2. Psychological 3. Report content Answers help MIS managers determine weaknesses: 1. Where and how do managers get information? 2. Can managers make better use of their contacts to get information? 3. In what areas is managers’ knowledge weakest, and how can managers be given information to minimize these weaknesses? 4. Do managers tend to act before receiving information? 5. Do managers wait so long for information that opportunities pass them by and the organization becomes bottlenecked? .

462 THE MANAGEMENT INFORMATION SYSTEM (MIS)
10/5/2017 THE MANAGEMENT INFORMATION SYSTEM (MIS) Table 21.1 Symptoms of an Inadequate MIS Operational Large physical inventory adjustments Capital expenditure overruns Inability of executives to explain changes from year to year in operating results Uncertain direction of company growth Cost variances unexplainable No order backlog awareness No internal discussion of reported data Insufficient knowledge about competition Purchasing parts from outside vendors when internal capability and capacity to make are available Record of some “sour” investments in facilities, or in programs such as R&D and advertising Psychological Surprise at financial results Poor attitude of executives about usefulness of information Lack of understanding of financial information on part of nonfinancial executives Lack of concern for environmental changes Executive homework reviewing reports considered excessive Report Content Excessive use of tabulations of figures Multiple preparation and distribution of identical data Disagreeing information from different sources Lack of periodic comparative information and trends Lateness of information Too little or excess detail Inaccurate information Lack of standards for comparison Failure to identify variances by cause and responsibility Inadequate externally generated information .

463 THE MANAGEMENT INFORMATION SYSTEM (MIS)
10/5/2017 THE MANAGEMENT INFORMATION SYSTEM (MIS) Establishing an MIS (con’t) Improving the MIS (con’t) Typical Improvements to an MIS 1. Building cooperation among MIS personnel and line managers 2. Constantly stressing that MIS personnel should strive to accomplish the purpose of the MIS—providing managers with decision-related information 3. Holding, wherever possible, both line managers and MIS personnel accountable for MIS activities on a cost-benefit basis 4. Operating an MIS in a “people-conscious” manner .

464 INFORMATION TECHNOLOGY
10/5/2017 INFORMATION TECHNOLOGY Computer Assistance in Using Information Main Functions of Computers Input Storage Processing Control Control activities indicate: 1. When data should be retrieved after storage 2. When and how the data should be analyzed 3. If and when the data should be restored after analysis 4. If and when additional data should be retrieved 5. When output activities should begin and end Output .

465 INFORMATION TECHNOLOGY
10/5/2017 INFORMATION TECHNOLOGY Relationships among the five main functions of a computer Figure 21.6 .

466 INFORMATION TECHNOLOGY
10/5/2017 INFORMATION TECHNOLOGY Computer Assistance in Using Information Possible Pitfalls in Using Computers 1. Thinking that a computer is capable of independently performing creative activities 2. Spending too much money on computer assistance 3. Overestimating the value of computer output .

467 THE MANAGEMENT DECISION SUPPORT SYSTEM (MDSS)
10/5/2017 THE MANAGEMENT DECISION SUPPORT SYSTEM (MDSS) MDSS is typically characterized by: 1. One or more corporate databases 2. One or more user databases 3. A set of quantitative tools stored in a model base •”What if” analysis 4. A dialogue capability .

468 THE MANAGEMENT DECISION SUPPORT SYSTEM (MDSS)
10/5/2017 THE MANAGEMENT DECISION SUPPORT SYSTEM (MDSS) Possible components of a management decision support system (MDSS) Figure 21.7 .

469 COMPUTER NETWORKS The Local Area Network The Internet
10/5/2017 COMPUTER NETWORKS The Local Area Network The Internet The World Wide Web Web site helps managers reach organizational goals like: Marketing products more effectively Enhancing the quality of recruits to the organization Enhancing product quality Communicating globally Encouraging creativity in organization members Intranets .

470 Total dollar sales of equipment used to build LANs in organizations
10/5/2017 COMPUTER NETWORKS Total dollar sales of equipment used to build LANs in organizations Figure 21.8 .

471 10/5/2017 COMPUTER NETWORKS Hotjobs is an Internet site where managers can list open positions and prospective applicants can review them Figure 21.9 .

472 The World Wide Web home page of WebSolvers
10/5/2017 COMPUTER NETWORKS The World Wide Web home page of WebSolvers Figure 21.10 .

473 10/5/2017 COMPUTER NETWORKS Fees for typical Web project charged to Fortune 500 clients and percent of Web consulting firms surveyed charging those fees Figure 21.11 .

474 COMPUTER NETWORKS Hints on How to E-mail Table 21.2
10/5/2017 COMPUTER NETWORKS Table 21.2 Hints on How to 1. Consider as you would a hard-copy letter. Proofread all your messages carefully before sending. If your program includes a spellchecker, learn how to use it. 2. Research and follow your company’s policies about sending copies to the appropriate colleagues. 3. Remember that can be monitored in some firms, and that it has been retrieved from hard drives and used as evidence in court cases. Do not use to start or circulate rumors, repeat damaging information, or spread misinformation. 4. Be sure your message is clear and unambiguous. It should indicate whether or not you require a reply. 5. Do not reply to s that are just confirmations or acknowledgments. Your will multiply unnecessarily if you do. 6. Write a letter when angry if you must, but do not send or save it. 7. Use a simple filing system for s you need to save. 8. Do not send or reply to chain letters. They clog the system and have been known to shut down entire networks. 9. Be conservative about adding your name to mailing lists and newsletters. 10. Do your personal correspondence from your home computer. .

475 Intranet home page for HTE
10/5/2017 COMPUTER NETWORKS Intranet home page for HTE Figure 21.12 .

476 10/5/2017 Chapter Twenty-One ? Questions

477 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

478 10/5/2017 Ü Objectives An understanding of the relationship between quality and total quality management An appreciation for the importance of quality Insights into how to achieve quality An understanding of how strategic planning can be used to promote quality Knowledge about the quality improvement process .

479 FUNDAMENTALS OF QUALITY
10/5/2017 FUNDAMENTALS OF QUALITY Defining Total Quality Management The Importance of Quality Armand V. Feigenbaum (1990): “Quality. Remember it?” High-quality goods and services results in: 1. A positive company image 2. Lower costs and higher market share 3. Decreased product liability costs Positive Company Image Lower Costs and Higher Market Share Decreased Product Liability Costs .

480 FUNDAMENTALS OF QUALITY
10/5/2017 FUNDAMENTALS OF QUALITY TQM typically results in lower costs and greater market share Figure 22.1 .

481 FUNDAMENTALS OF QUALITY
10/5/2017 FUNDAMENTALS OF QUALITY Established Quality Awards Deming Award Malcolm Baldrige National Quality Award Shingo Prize for Excellence in American Manufacturing Healthcare Forum/Witt Award: Commitment to Quality Achieving Quality Crosby’s Guidelines for Achieving Quality .

482 FUNDAMENTALS OF QUALITY
10/5/2017 FUNDAMENTALS OF QUALITY Crosby’s Vaccination Serum for Preventing Poor Total Quality Management Table 22.1 Integrity A. The chief executive officer is dedicated to having the customer receive what was promised, believes that the company will prosper only when all employees feel the same way, and is determined that neither customers nor employees will be hassled B. The chief operating officer believes that management performance is a complete function requiring that quality be “first among equals”—schedule and cost C. The senior executives, who report to those in A and B, take requirements so seriously that they cannot stand deviations D. The managers, who work for the senior executives, know that the future rests with their abilities to get things done through people—right the first time E. The professional employees know that the accuracy and completeness of their work determine the effectiveness of the entire workforce F. The employees as a whole recognize that their individual commitments to the integrity of requirements are what make the company sound Systems A. The quality management function is dedicated to measuring conformance to requirements and reporting any differences accurately B. The quality education system (QES) ensures that all employees of the company have a common language of quality and understand their personal roles in causing quality to be routine C. The financial method of measuring nonconformance and conformance costs is used to evaluate processes D. The use of the company’s services or products by customers is measured and reported in a manner that causes corrective action to occur E. The companywide emphasis on defect prevention serves as a base for continual review and planning using current and past experience to keep the past from repeating itself Communications A. Information about the progress of quality improvement and achievement actions is continually supplied to all employees B. Recognition programs applicable to all levels of responsibility are a part of normal operations C. Each person in the company can, with very little effort, identify error, waste, opportunity, or any concern to top management quickly—and receive an immediate answer D. Each management status meeting begins with a factual and financial review of quality Operations A. Suppliers are educated and supported in order to ensure that they will deliver services and products that are dependable and on time B. Procedures, products, and systems are qualified and proven prior to implementation and then continually examined and officially modified when the opportunity for improvement is seen C. Training is a routine activity for all tasks and is particularly integrated into new processes and procedures Policies A. The policies on quality are clear and unambiguous B. The quality function reports on the same level as those functions that are being measured and has complete freedom of activity C. Advertising and all external communications must be completely in compliance with the requirements that the products and services must meet .

483 FUNDAMENTALS OF QUALITY
10/5/2017 FUNDAMENTALS OF QUALITY Achieving Quality (con’t) Deming’s Guidelines for Achieving Quality 1. Create and publish to all employees a statement of aims and purposes 2. Learn new philosophy—this means top management and everybody else 3. Understand purpose of inspection—for process improvement and cost reduction 4. End practice of awarding business on basis of price tag alone 5. Improve constantly and forever system of production and service 6. Institute training 7. Teach and institute leadership 8. Drive out fear. Create trust. Create climate for innovation 9. Optimize efforts of teams, groups, staff areas toward company aims and purposes 10. Eliminate exhortations to workforce 11. (a) Learn and institute methods for improvement (no numerical production quotas) (b) learn capabilities of processes and how to improve them (no MBO) 12. Remove barriers that rob people of pride of workmanship 13. Encourage education and self-improvement for everyone 14. Take action to accomplish transformation .

484 FUNDAMENTALS OF QUALITY
10/5/2017 FUNDAMENTALS OF QUALITY Achieving Quality (con’t) Juran’s Guidelines for Achieving Quality 1. The mission of the firm as a whole to achieve and maintain high quality 2. The mission of individual departments within the firm to achieve and maintain high quality Shingo’s Guidelines for Achieving Quality Poka yoke Feigenbaum’s Guidelines For Achieving Quality Total quality management (TQM) .

485 FUNDAMENTALS OF QUALITY
10/5/2017 FUNDAMENTALS OF QUALITY Poka yoke device Figure 22.2 .

486 QUALITY THROUGH STRATEGIC PLANNING
10/5/2017 QUALITY THROUGH STRATEGIC PLANNING Environmental Analysis and Quality Establishing Organizational Direction and Quality .

487 QUALITY THROUGH STRATEGIC PLANNING
10/5/2017 QUALITY THROUGH STRATEGIC PLANNING Strategy Formulation and Quality SWOT analysis Improve and maintain high-quality operations and products: Value adding Leadership Empowerment Partnering 1. Suppliers must prove themselves reliable and cost-effective 2. Suppliers must prove the sustained quality of their products Gathering correct and timely information Continuous improvement and innovation .

488 QUALITY THROUGH STRATEGIC PLANNING
10/5/2017 QUALITY THROUGH STRATEGIC PLANNING Strategy Implementation and Quality Policies for Quality Organizing for Quality Improvement Infrastructure of quality council includes: 1. A process for nominating and selecting improvement projects 2. A process for assigning project improvement teams 3. A process for making improvements 4. A variety of resources 5. A process for review of progress 6. A process for dissemination of results and for recognition 7. Appropriate employee merit rating system to reward quality improvement 8. Extension of business planning to include goals for quality improvement .

489 QUALITY THROUGH STRATEGIC PLANNING
10/5/2017 QUALITY THROUGH STRATEGIC PLANNING Strategic Control and Quality Crosby's successive stages of quality maturity: 1. Uncertainty 2. Awakening 3. Enlightenment 4. Wisdom 5. Certainty .

490 THE QUALITY IMPROVEMENT PROCESS
10/5/2017 THE QUALITY IMPROVEMENT PROCESS The incremental approach to improving quality Figure 22.3 .

491 THE QUALITY IMPROVEMENT PROCESS
10/5/2017 THE QUALITY IMPROVEMENT PROCESS The Incremental Improvement Process Step 1: Choose area of improvement (improvement “theme”) Examples are: Reduction in production cycle time Increase in the percentage of nondefective units produced Reduction in the variability of raw material going into production Increase in on-time deliveries Reduction in machine downtime Reduction in employee absenteeism .

492 THE QUALITY IMPROVEMENT PROCESS
10/5/2017 THE QUALITY IMPROVEMENT PROCESS The Incremental Improvement Process (con’t) Step 2: Organize quality improvement team Members might include: One or more associates directly responsible for the work being done One or more customers receiving the benefits of the work One or more suppliers providing input into the work A member of management Perhaps one or more experts in areas particularly relevant to solving the problem and making the improvement .

493 THE QUALITY IMPROVEMENT PROCESS
10/5/2017 THE QUALITY IMPROVEMENT PROCESS The Incremental Improvement Process (con’t) Step 3: “Benchmark” best performers Step 4: Perform analysis to meet or beat benchmark Factors to be analyzed: Potential problems related to equipment Materials Work methods People Environment: Legal constraints Physical conditions Weather Step 5: Perform pilot study to test selected remedies Step 6: Management implements improvements .

494 THE QUALITY IMPROVEMENT PROCESS
10/5/2017 THE QUALITY IMPROVEMENT PROCESS Reengineering Improvements Hammer outlines principles of reengineering: 1: Organize around outcomes, not tasks 2: Have those who use the output of the process perform the process 3: Subsume information-processing work into the real work that produces the information 4: Treat geographically dispersed resources as though they were centralized 5: Link parallel activities instead of integrating their results 6: Put the decision point where the work is performed and build control into the process 7: Capture information once and at the source .

495 INNOVATION AND CREATIVITY
10/5/2017 INNOVATION AND CREATIVITY Creativity in Individuals Expertise Creative thinking Motivation Encouraging Creativity in Organization Members 1. Match individual expertise with work assignments 2. Provide resources necessary for creativity 3. Reward creativity .

496 INNOVATION AND CREATIVITY
10/5/2017 INNOVATION AND CREATIVITY The three components of creativity Figure 22.4 .

497 10/5/2017 Chapter Twenty-Two ? Questions

498 Modern Management 9th edition
10/5/2017 Modern Management 9th edition .

499 10/5/2017 Ü Objectives An understanding of digital dimensioning and the digital dimensioning process Insights into how digital expertise and digital environment relate to digital success An appreciation for digital strategy and digital direction Knowledge about how implementation and control relate to digital dimensioning An awareness of how strategic management and digital dimensioning relate Understanding of how planning, organizing, and digital dimensioning relate to the job of a manager Insights into how influencing, controlling, and digital dimensioning relate to the job of a manager .

500 DEFINING DIGITAL DIMENSIONING
10/5/2017 DEFINING DIGITAL DIMENSIONING E-business Internet access mostly in: U.S. Europe developed East Asia .

501 DEFINING DIGITAL DIMENSIONING
10/5/2017 DEFINING DIGITAL DIMENSIONING Digital dimensioning aims at reaching organizational goals Figure 23.1 .

502 THE DIGITAL DIMENSIONING PROCESS
10/5/2017 THE DIGITAL DIMENSIONING PROCESS Steps of the digital dimensioning process Figure 23.2 .

503 THE DIGITAL DIMENSIONING PROCESS
10/5/2017 THE DIGITAL DIMENSIONING PROCESS Enlisting Digital Expertise Train present organization members to develop needed digital expertise Hire new organization members who already possess the expertise Hiring an e-business consultant .

504 THE DIGITAL DIMENSIONING PROCESS
10/5/2017 THE DIGITAL DIMENSIONING PROCESS Analyzing Digital Environment Monitoring Assessing Making conclusions Analysis should answer diverse questions like: 1. What kind of e-business activities are competitors presently performing? 2. What digital services do customers need? 3. How does marketing work? 4. Is company successful in recruiting talented employees? 5. What impact is Internet activity having on company’s industry? .

505 THE DIGITAL DIMENSIONING PROCESS
10/5/2017 THE DIGITAL DIMENSIONING PROCESS How the Internet influences industry structure Figure 23.3 .

506 THE DIGITAL DIMENSIONING PROCESS
10/5/2017 THE DIGITAL DIMENSIONING PROCESS Establishing Digital Direction Mission statement and related goals Formulating Digital Strategy Focus on how to achieve the organization’s digital goals Implementing Digital Strategy Allocate resources necessary to build systems required by digital strategy Build organization culture so that digital strategy can grow and flourish Know how to change an organization to enhance digital focus Controlling Digital Dimensioning Special type of organizational control .

507 THE DIGITAL DIMENSIONING PROCESS
10/5/2017 THE DIGITAL DIMENSIONING PROCESS Managers may sometimes consider all digital dimensioning steps together Figure 23.4 .

508 DIGITAL DIMENSIONING AND STRATEGIC PLANNING
10/5/2017 DIGITAL DIMENSIONING AND STRATEGIC PLANNING Unique relationship between strategic planning and digital dimensioning is determined by distinctive organizational needs Strategic planning: Established: digital dimensioning can be thought of primarily as a subset Not established: digital dimensioning established as a special, unique process Avoid belief that issues in digital environment change so rapidly that digital dimensioning is relatively valueless Modern times require that mangers respond to digital environment changes quickly and often Avoid pitfall of foregoing thoughtful digital dimensioning because it seemingly takes too long or requires too much energy .

509 DIGITAL DIMENSIONING: THE MANAGER’S WHOLE JOB?
10/5/2017 DIGITAL DIMENSIONING: THE MANAGER’S WHOLE JOB? Digital dimensioning impacts and is impacted by traditional management functions Figure 23.5 .

510 DIGITAL DIMENSIONING: THE MANAGER’S WHOLE JOB?
10/5/2017 DIGITAL DIMENSIONING: THE MANAGER’S WHOLE JOB? Digital Dimensioning and Planning Planning: Establishes organizational goals Chooses tasks that must be performed in order to reach those goals Outlines how the tasks should be performed Determines when the tasks should be performed Planning focuses on goal accomplishment Planning impacts digital dimensioning Manager applies planning knowledge to best structure goals for organization’s digital dimensioning thrust Digital dimensioning impacts planning Organization’s digital dimension helps manager make better planning decisions .

511 DIGITAL DIMENSIONING: THE MANAGER’S WHOLE JOB?
10/5/2017 DIGITAL DIMENSIONING: THE MANAGER’S WHOLE JOB? Digital Dimensioning and Organizing Organizing establishes orderly uses for all resources Organizing assigns work to people that, once completed, will result in the organization reaching its targets Organizing impacts digital dimensioning Managers organize when establishing who does what digital dimensioning jobs Quality of equipment purchased Digital dimensioning impacts organizing Digital dimensioning can create ways to allow people to work together on specific projects from various locations around the world .

512 DIGITAL DIMENSIONING: THE MANAGER’S WHOLE JOB?
10/5/2017 DIGITAL DIMENSIONING: THE MANAGER’S WHOLE JOB? Digital Dimensioning and Influencing Influencing guides activities of people in appropriate directions Influencing involves: Focusing on employees as people Dealing with: Morale Arbitration of conflict Development of positive working relationships Influencing impacts digital dimensioning efforts How manager chooses to motivate individuals performing digital dimensioning activities can impact the quality of work those individuals produce Digital dimensioning impacts influencing efforts Managers build and operate special incentive programs as a means of motivating organization members .

513 DIGITAL DIMENSIONING: THE MANAGER’S WHOLE JOB?
10/5/2017 DIGITAL DIMENSIONING: THE MANAGER’S WHOLE JOB? Digital Dimensioning and Controlling Controlling makes sure that events occur as planned Planning and controlling are Siamese twins of management Controlling impacts the success of digital dimensioning Haphazardly monitoring digital efforts does not afford management the best opportunity to uncover and neutralize issues that slow digital progress Digital dimensioning impacts controlling Many companies maintain Web sites that offer a wide array of products .

514 10/5/2017 Chapter Twenty-Three ? Questions

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