OB_Study_Guide.docx

OB Study Guide Introduction to OB Lecture OB Radar Typical Organizational Career Paths College Student (business major, letters and sciences major, engineering major) Entry-Level Position (sales representative, business analyst, accountant, product designer) First Level supervisor/Manager (department manager, team leader, production supervisor, store manager) Middle-Level Manager (director, district manager) Upper-Level Management (CEO, CFO, vice-president, executive vice-president) School vs. the Business World Differences Between: School vs. Business Achieving success: Individual vs. Teamwork Critical Ability: Tests vs Relationships Structure: Quantified vs. Subjective Grad?s Role: Customer vs. Employee Performance: Objective vs. Judgments Communication: Written vs. Verbal Prestige: Senior vs. Trainee Knowing-Doing Gap Knowledge is not implemented Costs billions of dollars and failure of all kinds 1.Discuss reasons why you should care about organizational behavior (pp. 2-4). 2.Discuss the relationship between OB and company success. (pp. 5-6). 3.Discuss the importance of OB skills across business functions (pp. 6-8). 4.Discuss the relationship between OB skills and hiring. (pp. 10-14). 5.Compare and contrast the differences between success factors for school vs. the business world (pp. 16-17). 6.Identify and describe the causes of knowing-doing gaps and recommendations for bridging this gap (pp. 18-19). 7.Identify and discuss the key practical points and takeaways from the Voices of Experience on pp. 7-8, 9, 12-13, and 15-16) Strategic Management Lecture Strategic Planning Process Conduct a strategic (SWOT) analysis. Strengths Weaknesses Opportunities Threats Establish the purpose, vision, and mission. Vision statement- A vivid description of a preferred or idealized future state. Ex: PepsiCo?s responsibility is to continually improve all aspects of the world in which we operate ? environment, social, economic ?creating a better tomorrow than today. Our Vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company. Mission Statement- describes what an organization is, its purpose, what it does, how it does it, and who it does it for. Ex: Our mission is to be the world?s premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity. Define strategic objectives. Typically 3-5 key strategies that are specific, measurable, and in alignment with the vision and mission of the organization. Example: We aim for a return on investment of at least 15% We aim to achieve an operating profit of over $10 million on sales of at least $100 million We will grow sales revenue by 20% per year We will descrease product defects by 5% per year We will achieve a 90% employee satisfaction rate each year Formulate supporting plans that align with the organization?s overall strategic plan. For small organizations, this will focus on operational plans for various units (finance, marketing) For Larger organizations, this will focus more on strategic plans that each unit develops to support the overall plan. Execute the strategic plan. Common Causes of Execution Problems Management allowing the strategy to shift over time (lack of managerial oversight and focus) Lack of mechanisms to support ?Learning? and ?Integration? The strategy is not communicated to people involved in implementation Inability to synchronize the different elements of the strategy Employee resistance to the strategy An organizational culture that does not support the strategy Strategies for Enhancing Strategic Execution Give formal accountability for effective execution of the strategy to an individual or group of individuals Develop a model of execution that includes action plans for each unit of the organization Communicate, communicate, communicate Choose the right metrics for evaluating strategy execution Assess performance frequently to achieve ?cycles of improvement? Evaluate the strategic plan. Use a ?balanced scorecard? to evaluate performance on a quarterly basis and make adjustments as needed. Characteristics of Effective vision and Mission Statements An Effective Vision Statement Spells out a high level goal for an organization Is long term-oriented Provides inspiration and motivation for members of the organization and other stakeholders An Effective Mission Statement What does the organization do? How do we do it? Who do we do it for? Is in alignment with the vision statement Collins Good to Great Organizations Model Level 5 Leadership Personal humility Inspired standards to motivate Channels ambition to the company Assumes responsibility for poor results and gives credit to others Unwavering resolve to produce long-term results Sets standards for building an enduring, great company The Hedgehog Concept Involves knowing what a company does better than anyone else and maintaining a focus on this The Doom Loop The condition under which the organization loses its focus on its ?hedgehog concept? and it discipline in executing the system often due to short-term thinking and ?quick fix? initiatives. This results in a downward spiral of lower and lower organizational performance. Baldrige Performance Excellence Model Evaluation Methodology ADLI Approach Deployment Learning Integration Process Criteria Leadership Strategic Planning Customer Focus Measurement, Analysis, and Knowledge Management Work Focus Management Process Management Evaluation Methodology Results evaluated in terms of LTCI LTCI Level Trend Comparison Integration Outcomes based on Process Criteria Leadership Outcomes Strategic Planning Outcomes Customer Focus Outcomes Measurement, Analysis and Knowledge Management Outcomes Work Focus Management Outcomes Process Management Outcomes Organizational Design Lecture Fundamental Elements of Organizational Design Division of Labor- How do we take ?tasks? that need to be performed and bundle them into appropriate ?jobs?? (Job Descriptions) Departmental and Divisional Unit Formation- How are jobs bundled together into appropriate ?work units? that are then bundled into ?divisions? based on function and interdependence? Basic Control Mechanisms- How do we ensure that tasks are performed in a certain manner and upto a specific standard? Rules Policies Procedures Processes Systems Integrating and Coordinating Mechanisms- How do you get intra-unit tasks, roles, jobs, processes, and systems to work together to support the unit?s and the organization?s objectives? How do you foster inter-unit coordination within an organization in support of an organizations objectives? Formalization- How do you informally vs. formally define the roles, functions, processes and systems to ensure that organizational members understand what to do and how to do it in order to achieve the organization?s objectives? Boundary Spanning- How do you link specific work units or the organization with external entities (strategic alliances, suppliers, customers)? Centralization vs. Decentralization- To what degree do you retain control and decision making authority at the top of the organization vs. delegating it to the front line workers? Types of Organizational Designs Functional Design Advantages- Excellent resource efficiency, good accountability, provides specialization Disadvantages- poor adaptability to change, emergence of ?functional silos? Divisional Design Advantages- Ability to focus on strategies related to a specific product or service, each business unit has all of the functions needed to operate autonomously Disadvantages- poor resource efficiency, complexity associated with managing a portfolio of units Matrix Design Advantages- Enhances cross-functional interaction and coordination between units, enhances flow of communication between units Disadvantages- Frustration and stress of a ?two boss system?, risk of one system overwhelming the other, need for high levels of time and commitment to support coordination activities Goold and Campbell?s Framework for Creating a Well-Designed Organization The Market Advantage- Does your design direct sufficient management attention to your sources of competitive advantage? The Feasibility Test- Have you taken account of all of the contraints (government, stakeholder, cultural, systematic) that may impeded implementation of your design? The Specialist Cultures Test- Does your design protect units that need distinct cultures? The Difficult Links Test- Does your design provide coordination solutions for ?unit to unit? problems? The Redundant Hierarchy Test- Does your design have too many levels and units? The Accountability Test- Does your design support effective controls? Organizational Change Lecture Kotter?s Model for Managing Change Stage 1: Establish a sense of urgency. Pitfalls Underestimating the difficulty of driving people from their comfort zones. Becoming paralyzed by risks. Stage 2: Form a powerful guiding coalition. Pitfalls No prior experience in teamwork at the top. Relegating team leadership to an HR, quality, or strategic planning executive rather than a senior line manager. Stage 3: Create a vision. Pitfalls Presenting a vision that?s too complicated or vague to be communicated in five minutes. Stage 4: Communicate the vision. Pitfalls Under communicating the vision Behaving in ways antithetical to the vision Stage 5: Empower others to act on the vision. Pitfalls Failing to remove powerful individuals who resist the change effort Stage 6: Plan for and create short-term wins. Pitfalls Leaving short-term successes up to chance. Failing to score successes early enough (12-24 months into the change effort). Stage 7: Consolidate improvements and produce more change. Pitfalls Declaring victory too soon ? with the first improvement. Allowing resistors to convince ?troops? that the war has been won. Stage 8: Institutionalize new approaches. Pitfalls Not creating new social norms and shared values consistent with changes. Promoting people into leadership positions who don?t personify the new approach. Strategies for Overcoming Resistance to Change Education and Communication When to use When employees do not understand the change or how it will affect them Potential Problems Potentially time-consuming and costly Employee Involvement and Participation When to use When it is important to obtain the ?buy-in? of employees. When employees may have good ideas regarding the design and implementation of the change. Potential Problems Potentially time consuming and costly Support When to use When employees lack the knowledge or skills needed to support the change. When employees feel that they are not capable of supporting the change. When employees need additional staff or resources to implement the change. Potential Problems Potentially time-consuming and costly. Incentives When to use When it is important to motivate employees to support the change. When it is important to reward employees for implementing the change. Potential Problems Potentially costly Co-Optation When to use When you need the ?buy-in? of an individual and other tactics have failed Potential Problems May be perceived as ?manipulative? by some people Coercion When to use When time is critical and the change must be implemented now. When other tactics have failed. Potential Problem May strain working relationships with employees Employees may reject the change in more subtle ways. 1. Identify and describe the attributes of the change-capable organization (pp. 656-657). 2. Identify and describe the three major phases of Lewin?s change process model (pp. 657-658) 3. Identify and describe the elements of models of organizational change and their practical implications (pp. 658-661). 4. Identify and describe the key points from the Voice of Experience with Jeff Hackel (pp. 660-661). 5. Identify and describe the five common causes of resistance to change (pp. 663-664) 6. Identify and describe strategies for overcoming resistance to change (p. 665- 670). 7. Identify and describe the strategies for managing difficult transitions in organizations (pp.670-673). 8. Identify and describe the five disciplines and the seven learning disabilities of learning organizations (pp. 679-683). CHAPTER 1 NOTES Managers? ability was three times as powerful in explaining company profitability Strategic thinking, effective communication and leadership are essential skills Important competencies Providing strategic vision Assembling teams of skilled employees Sharing information with employees Coaching Diagnosing performance Negotiating Selecting high-potential employees Along with functional competencies, handling personal relationships and facilitating learning and personal improvement, as well as such broad business perspective competencies as strategic thinking, critical thinking, and decision making Why OB skills are valuable- companies want them, they are becoming more crucial in the changing business environment, and they will serve you well in life Employers want Team players with strong verbal and written communication skills Honesty and integrity Interpersonal skills Motivation and initiative A strong work ethic Analytical skills ?Soft skills? Communicating Problem solving Motivating Leading Negotiating Working with others Entrepreneurship- entrepreneurial success depends heavily on managerial skills, including social skills Downsizing and Delayering- Downsizing- deliberate reductions of personnel; Delayering- the elimination of entire levels of the organizational hierarchy; One important effect of such delayering is to push managerial responsibilities down to lower levels in the organization Job enrichment and empowerment- adopting a variety of approaches to giving workers more personal responsibilities for their work Self-managed work teams Hiring for the second job- companies are concerned relatively less with technical skills and more with conceptual and interpersonal skills that will be needed in the future Growth in management positions- number of managers will increase by 2016 As you enter business, you will see that success depends much more on teamwork Rely more on verbal communication and handling relationships Job will be less structured, and your performance ratings will be more judgmental You will often initially be in the low-prestige position of trainee, and you will be an employee rather than a customer Knowing-Doing Gap Causes Knowledge management efforts mostly emphasize technology and the transfer of codified information Knowledge management tends to treat knowledge as a tangible thing, as a stock or a quantity, and therefore separates knowledge as a thing from the use of that thing Formal systems can?t easily store or transfer tactic knowledge; Tactic Knowledge- refers to information that is important for doing something effectively that cannot be captured, measured, or codified by formal knowledge systems in organizations The people responsible for transferring and implementing knowledge management frequently do not understand the actual work being documented Knowledge management tends to focus on specific practices and ignore the importance of philosophy; philosophy provides a framework for thinking about and implementing a set of strategies geared toward achieving specific business objectives Solutions Why before how: Philosophy is important Knowing comes from doing and teaching others how Action comes before elegant plans and concepts There is no doing without mistakes; key is does an organization possess a philosophy, approach, and culture that enables it to learn from its mistakes to reduce the likelihood of committing the same error in the future Fear fosters knowing-doing gaps; drive out fear; fear often prevents people from doing what they know they should do in organizations Beware of false analogies: Fight competition, not each other; the presence of internal competition in an organization undermines cooperation and collaboration among individuals and work units Measure what matters and what can help turn knowledge into action What leaders do, how they spend their time, and how they allocate resources, matters Social Learning Perspective- skills assessment, skills awareness, skills attainment, skills application Technical skills- include knowledge about methods, processes, and techniques designed to carry out some specialized activity as well as the ability to use tools and equipment related to the activity Interpersonal or human skills- deal with human behavior and interpersonal processes, communication, cooperation, and social sensitivity Conceptual skills- include analytical ability, creativity, efficiency in problem solving, and ability to recognize opportunities and potential problems Employee effectiveness- may be gauged by motivation, performance, participation behaviors, and personal well-being and satisfaction Work Unit effectiveness- may relate to achievement of the work unit?s mission and strategic plan, productivity, quality, and customer satisfaction Organizational effectiveness- may take such forms as achievement of the organizational mission and strategic plan, profitability, customer satisfaction Action planning- the process through which a manager formulates the specific steps that will be taken to address business problems and challenges Action planning The process must be systematic and actively managed Action planning requires a ?layering? approach, in which action steps are translated into specific supporting actions in relation to each employee who will be involved with implementation There must be ongoing and systematic evaluation of the results achieved after the implementation of the action plan DISCUSSION NOTES Knowing-Doing Gap Mangers/employees know what should be done, but fail to implement Causes: Knowledge management efforts focus on technology and transfer/storage of codified information- NOT how to best use the info Knowledge management often treats knowledge as a tangible thing and thus separates the ?thing? from its use Formal systems can not capture tacit knowledge The people in charge of knowledge management at an organization are often not the ones doing the work being documented Solutions: Why before how: philosophy is important Know, Do, Teach Action comes before elegant plans and concepts Mistakes are OK and inevitable. The important thing is to learn from mistakes Drive out fear Fight the competition, not each other Measure what matters What leaders do matters CHAPTER 13 NOTES Planned versus Reactive Change Planned Change- occurs when managers develop and install a program that serves to alter organizational activities in a timely and orderly way Planned change is initiated because managers expect the development of a force fo change and thus seek to prepare the organization to adjust activities with minimal disruption Reactive change- occurs when managers simply respond to the pressure for change when that pressure comes to their attention Key to planned change is that managers must be able to anticipate the types of change that will be necessary Reactive change is most effective when applied to small or day-to-day problems in the organization The Change-Capable Organization Link the present and the future. Make learning a way of life. Actively support and encourage day-to-day improvements and changes. Ensure diverse teams. Encourage mavericks. Shelter breakthroughs. Integrate technology. Build and deep trust. Models of Organizational Change Kotter?s Eight-Step Model for Transforming an Organization Major problems with the management of change that are addressed by the model include: Not establishing a great enough sense of urgency regarding the need for change Not creating a powerful enough guiding coalition to support the change Lacking a vision for the change Under-communicating the vision by a factor of 10 to key stakeholders who neeed to understand and support the change Inhibiting the implementation of the change by not removing obstacles to the vision Not systematically planning for and creating short-term wins associated with the change Demonstrating a short-term mentality for the change my declaring victory too soon, and not anchoring the change in the corporate culture McKinsey 7-S Model McKinsey 7-S model is useful for diagnosing the functioning of an organization, identifying misalignments among different parts of the organization, and formulating recommendations for enhancing the effectiveness of an organization Structural change- involves altering a firm?s formal authority structure of job definitions Technological change- occurs when a new method is used to transform resources into a product of service Human change- involves changing employee attitudes, skills, knowledge, or behavior Balancing Forces for and Against Change Kurt Lewin Force field analysis- whether or not change attempts are successful depends on whether forces in support of change are greater than those opposing change Best Practices for Managing Change Consider the combined effects of different kinds of change. Concentrate on a few processes that really count. Find allies who will help you to counter critics and conservatives. To make change easier to accept, introduce it in stages. Do not readily abandon failing projects; reorient, revise, and reinforce them. Find a few key measures to best judge success. If it takes complex reasoning to justify change, abandon it. If you make promises about change, keep them. Never assume that you know what people are thinking-ask them. Use regular progress meetings to highlight achievements. Always be frank about the possible adverse effects of change. Monitor employee morale closely and act if it starts to deteriorate. Err on the side of excess when celebrating success. Organizational Design Organization development- an ?effort (1) planned, (2) organization-wide, and (3) managed from the top, to (4) increase organizational effectiveness and health through (5) planned interventions in the organization?s ?process?, using behavioral science knowledge OD Assumptions and Values People as individuals. People as group members. People as members of the organization. The OD Process Identify a need for change. Select a technique for change. Diagnostic techniques. Team building. Survey feedback. Education. Intergroup activities. Third-party peacemaking. Sociotechnical activities. Process consultation. Life and career planning. Coaching. Planning and goal setting. Gather top management support. Plan the change process. Overcome resistance to change. Evaluate the change process. Conditions for Successful OD Programs Recognition by managers and members that the organization has problems. Use of an external change agent to start the process. Support from top management for the change process. Involvement of work group leaders. Early success with the OD effort. Understanding of the change process and its goals. Support of managerial strengths. Inclusion of human resource managers in the OD program. Development of internal OD resources. Effective management of the OD program. Measurement and evaluation of results. The Learning Organization The Seven Learning Disabilities ?I am my position? ?The enemy is out there.? ?The illusion of taking charge.? ?The fixation on events.? ?The parable of the boiled frog.? ?The delusion of learning from experience.? ?The myth of the management team.? Developing Learning Organizations Learning leaders Leadership communities Learning infrastructures Learning cultures