Quizzam 3 management 3000 Mizzou (ch 8,9,10)

Innovation

"Is the creation of something new that makes money; it finds a pathway to the consumer. Innovations must be both novel and useful.

Kathleen Kelley Reardon

She says that there was a point in everyone's career or politics become more important. You have to know the political climate of the company you work for, she is the author of the secret handshake and it's all politics. Don't be the last person to understand how people get promoted, how they get noticed, how certain projects come to attention. Don't be quick to trust. If you don't understand the political machinations you were going to feel much more often.

Common Elements of Organizations: three more that most authorities agree on

(5) Span of Control: Narrow (or Tall) versus Wide (or Flat): The span of control or the span of management refers to the number of people reporting directly to a given manager. There are 2 kinds: Narrow span of control This means that the manager has a limited number of people. OR Wide span of Control- This means that as manager has several people reporting (6) Authority, Responsibility, and Delegation: Line versus staff Positions. Accountability Authority refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources. ACCOUNTABILITY - managers must report and justify work results to the managers above them. RESPONSIBILITY - is the obligation you have to perform the tasks assigned to you. DELEGATION - is the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy. LINE POSITION - Line managers have authority to make decisions and usually have reporting to them. STAFF POSITION - Staff personnel have authority functions; theyprovide advice, recommendation, and research to line managers

Three factors to be considered in designing an organization's structure

1. Environment—mechanistic versus organic 2. Environment—differentiation versus integration 3. Link between strategy, culture, and structure

The effectiveness of OD

1. Multiple interventions: combined interventions have been found to work better than single interventions 2. Management support: OD is more likely to succeed when top managers give the OD program their support and are truly committed to the change process and the desired goals of the change program 3. Goals geared to both short and long term results: change programs are more successful when they are oriented toward achieving both short term and long term results, change should produce positive results. 4. OD is affected by culture

Lewin's Change Model

1. Unfreezing: create the motivation to change 2. Changing: employees need to be given the tools for change, new info new perspectives and new models of behavior, change is more likely to be accepted if employees possess the career readiness competencies of proactive learning orientation and openness to change 3. Refreezing: employees need to be helped to integrate the changed attitudes and behaviors into their normal ways of doing things.

Forces Originating outside the Organization

1. demographic characteristics: labor force becoming more diverse 2. technological advancements: technology is not just computer technology, it is any machine or process that enables an organization to gain a competitive advantage in changing materials used to produce a finished product 3. shareholder, customer, and market changes: shareholders have been more active in pressing for organizational change, some recorders may form a B corporation or benefit corporation in which the company is legally required to adhere to socially beneficial practices 4. social and political pressures

What can OD be used for?

1. managing conflict: conflict is inherent in most organizations, this can help advise on how to improve relationships within the organization 2. revitalizing organizations: information technology is wreaking such change that nearly all organizations these days are placed in the position of having to adopt new behaviors in order to resist decline OD can help by opening communication, fostering innovation and dealing with stress 3. adapting to mergers

Clan Culture: An Employee Focused Culture Valuing Flexibility, Not Stability

A clan culture has an internal focus and values flexibility rather than stability and control. Like family type organization encourages collaboration among employees, striving to encourage cohesion through consensus and job satisfaction and to increase commitment through employee involvement clan organizations develop considerable resources the hiring and developing employees and they view customers as partners Ben salzmann believes But if employees are given a fun rewarding place to work where they can express their creativity in return the firm will get innovation diehard loyalty and world-class customer service. The end results are profitability and an inviably low turnover rate

heroes

A heart is a person whose accomplishments embody the values of the organization.

heirarchy culture: a structured culture valuing stability and effectiveness

A hierarchy culture has an internal focus and value stability and control over flexibility

Stories legends and myths (mechanism to change organizational culture)

A story is a narrative about an actual event that happened within the organization and that helps to symbolize its vision and values to employees

stories

A story is a narrative based on true events which are repeated and sometimes embellished upon to emphasize a particular value

Symbols

A symbol is an object or action that represents an identity or quality. With respect to culture, symbols are artifacts used to convey an organizations most important values. (Nike swish)

Force Field Analysis

A technique for determining which forces drive a proposed change and which forces could act against it

rites and rituals

Activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organizations life.

Human Resource Management (HRM)

Activities that managers engage in to attract and retain employees and to ensure that they perform at a high level and contribute to the accomplishment of organizational goals. Strategic human resource planning consists of developing a systematic, comprehensive strategy for a.) understanding current employee needs and b.) predicting future employee needs

Adhocracy culture: a risk-taking culture valuing flexibility

Adhocracy culture has an external focus and values flexibility. Creation of new products and services is the strategic thrust of this culture which attempts to create innovative products by being adaptable creative and quick to respond to changes in the marketplace employees are encouraged to take risks and experiment with new ways of getting things done. Adhocracy cultures are well-suited for start up companies, as well as an industry that is undergoing constant change, and those mature industries that are in need of innovation to enhance growth

Innovation system

An innovation system is a coherent set of interdependent processes and structures that dictates how the company searches for novel problems and solutions, synthesizes ideas into a business concept and product designs, and selects which project gets funded.

measurable and controllable activities (mechanism to change organizational culture)

An organization's leaders can pay attention to, measure, and control a number of activities, processes, or outcomes that can foster a certain culture.

Culture is positively associated with a variety of outcomes

An organizations culture matters: can be a source of competitive advantage Employees have more posh work attitudes when working in organizations with clan cultures: employees clearly prefer to work in organizations that value flexibility over stability and control, as well as those that are more concerned with satisfying the needs of employees rather than those of shareholders or customers Clan and market cultures are more likely to deliver higher customer satisfaction and market share: the positive employee attitudes associated with clan cultures motivates employees to provide better customer service Operational outcomes, quality, and innovation are more strongly related to clan, adhocracy, and market cultures rather than to hierarchal ones: managers should avoid the use of too many rules and procedures (hierarchical characteristics) when trying to improve these outcomes An organization's financial performance (profit and revenue growth) is related to market and hierarchy culture: clan and adhocracy cultures are not related to financial performance, so managers should not expect to see a direct increase in financial performance using these two types, on the other hand market and hierarchy culture can prompt higher financial performance. Companies with market cultures tend to have more positive organizational outcomes: managers are encouraged to make their cultures more market oriented.

Level 1: Observable Artifacts—Physical Manifestations of Culture

At the most visible level, organizational culture is expressed in observable artifacts—physical manifestations such as manner of dress, awards, myths and stories about the company, rituals and ceremonies, and decorations, as well as visible behavior exhibited by managers and employees. An example is in a conference room reserved for sensitive discussions online travel company kayak has a 2 foot high stuffed elephant named animal, the elephant in the room, there is an artifact believed to bring forth more honest and constructive communications among employees.

Level 3: Basic Assumptions—Core Values of the Organization

Basic assumptions, which are not observable, represent the core beliefs that employees have about their organization—those that are taken for granted and, as a result, are difficult to change. Example: At insurance giant AIG, people worked so hard that the joke around the offices was "Thank heavens it's Friday, because that means there are only two more working days until Monday." Another example: When Peter Swinburn took over in 2008 as CEO of Molson Coors, headquartered jointly in Denver and Montreal, the company had grown into one of the world's largest breweries through a process of 10 acquisitions and joint ventures during the preceding decade. "The challenge was getting a staff of 15,000 workers on three continents to think as one," says one account. "There were different languages and work practices." Swinburn came up with an unofficial motto—"Challenge the expected"—that he hoped would motivate employees to think outside their roles. One survey found that 87% of employees said the company had a "clear vision for the future" in 2009, up from 73% in 2008.

Brett Wilson, CEO of tubemogul says

Culture and people are everything, nothing else matters, and our ability to stay ahead is a function of having the best people and moving faster than our competitors, creating an exceptional culture is the only way to build a sustainable competitive advantage He prefers nice people,

How OD works

Diagnosis: what is the problem, managers use questionnaires surveys etc to ascertain people's attitudes to identify problem areas.a problem is defined as a gap between an outcome and result desired by managers and the actual status of the outcome or the result Intervention: what shall we do about it, "treatment", is the attempt to correct the diagnosed problems. Often using OD consultants with the management teams Evaluation: Feedback: how can the diagnosis be further refined? If evaluation shows that the diagnosis was wrong or that the intervention was not effective the OD consultant or managers need to return to the beginning to rethink those two steps

There is more chapter 9 so read the highlighted sections of these chapters over again

Diagrams

Differentiation: when forces push the organization apart

Differentiation is the tendency of the parts of an organization to disperse and fragment. The more subunits into which an organization breaks down, the more highly differentiated it is. This impulse toward dispersal arises because of technical specialization and division of labor. As a result, specialists behave in specific, delimited ways, without coordinating with other parts of the organization. For example, a company producing dental floss, deodorants, and other personal care products might have different product divisions, each with its own production facility and sales staff—a quite differentiated organization.

drivers and flow of organizational culture

Drivers of culture -> organizational culture -> organizational structure and internal process -> group and social processes -> work attitudes and behaviors -> overall performance

Learning and development program

Fill in the gaps for what employees need to know. Assessment, objectives, selection, implementation, evaluation

Three types of an organization

For profit: these are formed to make money, or profits, by offering products or services. Non-profit: these are formed to offer services to some clients, not to make profit (hospitals and colleges) Mutual benefit: these are voluntary collectives whose purpose is to advance members interests (unions, trade associations)

What drives an organizational culture?

Founder's values Industry and business environment National culture Organization's vision and strategies Behavior of leaders

compensation

Had three parts: wages or salaries, incentives, and benefits, Wages or salaries: base pay consists of the basic wage or salary paid employees in exchange for doing their job. Incentives: to attract high performing employees and to induce those already employed to be more productive, organizations offer incentives alike bonuses, commissions, profit sharing plans, and stock options. Benefits: or fringe benefits, are additional non-monetary forms of compensations designed to enrich lives of all employees in the organization which are paid all or in part by the organization.

Greg Schott

He looks for people with high integrity, being a great team player, and want to win as a company first, team second, individually third

Chester I. Barnard

His classic definition an organization is a system of consciously coordinated activists or forces of two or more people

market culture: a competitive culture valuing profits over employee satisfaction

Market culture has a strong external focus and values stability and control

Selection

How to choose the best person for the job, selection process is the screening of job applicants to hire the best candidate, this boils down to prediction. Application forms and resumes provide basic background information about job applicants, such as citizenship education work history and certifications. People serving as references can answer any and all questions including protected information as long as it's true.

Person-organization (P-O) fit

How well you will fit in, it reflects the extent to which your personality and values match the climate and culture in an organization, a good fit is important because it is associated with more positive work attitudes and task performance, lower stress and fewer expressions of an intention to quit, good fit is a high priority in by many interviewers

Product innovation

Is a change in the appearance or functionality/performance of a product or service or the creation of a new one.

Process innovation

Is a change in the way a product or service is conceived manufactured or distributed

Performance appraisal or performance reveiw

Is a management process that consists of 1 assessing an employees performance and 2 providing him or her with feedback

Organizational development (OD)

Is a set of techniques for implementing planned change to make people and organizations more effective, note the inclusion of people in this definition, it focuses specifically on people in the change process

Three kinds of change from least threatening to most threatening

Least threatening: adaptive change which is the reintroduction of a familiar practice, the implementation a kind of change that has already been experienced within the same organization. Lowest in complexity, cost, uncertainty and employee resistance. Somewhat threatening: innovative change Very threatening: radically innovative change

Role Modeling, Training, Coaching (mechanism to change organizational culture)

Many companies provide structured training to provide an in depth introduction to their organizational values. Others build learning into their culture.

Edgar Schein

Organizational culture, sometimes called corporate culture, is defined as a set of shared, taken for granted, implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments.

Onboardinf

Programs that help employees to integrate and transition to new jobs by making them familiar with corporate policies, procedures, cultures, and politics by clarifying work-role expectations and responsibilities. Also referred to as employee socialization.

Reactive and proactive change

Reactive: responding to unanticipated problems and opportunities, when managers talk about putting out fires they are talking about reactive change which is making changes in response to problems or opportunities as they arise. Proactive: planned change, involve making carefully thought out changes in anticipation of possible or expected problems or opportunities.

rites and rituals (mechanism to change organizational culture)

Represent the planned and unplanned activities and ceremonies that are used to celebrate important events or achievements,

rewards, titles, promotions, and bonuses (mechanism to change organizational culture)

Rewards and status symbols are among the strongest ways to embed organizational culture.

Organizational structure (mechanism to change organizational culture)

The hierarchical structure found in most traditional organizations is more likely to reinforce a culture oriented toward control and authority compared with the flatter organization that eliminates management layers in favor of giving employees more power

Super trends shaping the future of business

The marketplace is becoming more segmented: moving toward more niche products, demassification, may even be shaped and personalized by artificial intelligence technology, some suggest that this customer centric marketing can help create relationships that result in loyal customers and repeat business Competitors offering specialized solutions require us to get our products to market faster: companies that take too long to commercialize their products may fail to capitalize on a narrow window of opportunity before competitors swoop in and pass them by, like pop up stores. Some companies are unable to survive disruptive innovation: disruptive innovation is a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing competitors, toys r us Offshore suppliers are changing the way we work Knowledge, not information, is becoming the new competitive advantage

Interviewing

The most commonly used information-gathering technique. Unstructured interview: involves asking probing questions to find out what the applicant is like. No fixed set of apquestions and no systematic scoring procedure. Overly subjective and apt to be influenced by bias. Also susceptible to legal attack, it is however found to provide a more accurate assessment of an applicants job related personality traits. Structured interview toe 1: the structured interview involves asking each applicant the same questions and comparing their responses to a standardized set of answers. The situational interview: the interviewer focuses on hypothetical situations. Structured interview type 2: the behavioral descriptive interview: the interviewer explores what applicants have actually done in the past. Employment tests: legally considered to consist of any procedure used in the employee not selection decision process, even application forms, interviews, and educational requirements. Ability, performance, and personality tests.

recruitment

The process of locating and attracting qualified job applicants for jobs open in the organization. Two types: internal and external Internal recruiting: means making people already employed by the organization aware of job openings, most vacant positions in organizations are filled thru internal recruitment mainly through: job posting, placing information about job vacancies and qualifications on bulletin boards, in newsletters and on the organizations intranet. This means employees need to take responsibility for managing their own careers. External recruiting: means attracting job applicants from outside the organization. Today more than 90% of US organizations use social networks to find new employees with linked in the most popular site by far. Realistic job previews (RJP) gives a candidate a picture of both positive and negative features of the job and the organization before he or she is hired. This recruiting technique is very effective at reducing turnover within 30-90 days of employment

organizational culture

The shared assumptions that affect how work gets done

Physical design (mechanism to change organizational culture)

There is constant experimenting to find the best office layout that will encourage employee productivity and send a strong message about the culture

Organizational/corporate culture

These are the beliefs and values shared among a workplace and are passed onto new employees by way of socializing and mentoring. As stated earlier, culture is the "social glue" that binds members of the organization together, the organization has "personality" which is culture. The culture helps employees understand why the organization does what it does and how it intends to accomplish its long term goals

Innovation system

These must be aligned and integrated for innovation to blossom Innovation strategy: many companies fail in their improvement efforts because they lack innovation strategy, integrate its innovation activities into its business strategies. Committed leadership: real commitment from senior leaders is essential to success Innovative culture and climate: the culture and climate must also foster innovation Required structure and processes: foster collaboration, cross functional communication and agility Necessary human capital: helps organizations innovate Human resource policies, practices, and procedures: need to be consistent to reinforce the other 6 Appropriate resources:

Peter Miller

Ultimate filter he uses is that they only hire nice people

Formal statements (mechanism to change organizational culture)

Using formal statements of organizational philosophy, mission, vision, and values, as well as materials used for recruiting, selecting, and socializing employees.

responsibility

With more authority comes more responsibility, it is the obligation your have to perform the tasks assigned to you.

Organizational structure

a formal system of task and reporting relationships that coordinates and motivates organizational members so they work together to achieve organizational goals. Concerned with who exports to who and who specializes in what work.

mechanistic organization

authority is centralized, tasks and rules are clearly specified, and employees are closely supervised. Bureaucratic with rigid rules and top down communication. (Hotel work), works best in a stable environment.

objective appraisals (results appraisals)

based on facts and are often numerical

organization chart

box-and-lines illustration showing the formal lines of authority and the organization's official positions or work specializations, two kinds of information that organization charts reveal about organizational structure are 1.) the vertical hierarchy of authority, who reports to whom, and 2.) the horizontal specialization, who specializes in what work.

Four Types of Organizational Culture

clan, adhocracy, market, hierarchy's Research for this varied along to dimensions horizontal dimension which was inward or outward focus this dimension expresses the extent to which an organization focuses attention and efforts inward on internal dynamics and employees versus outward toward its external environment and its customers and shareholders The vertical dimension which is flexibility or stability and this dimension expresses the extent to which an organization prefers flexibility and discretion versus stability and control combining these two dimensions creates a four types of organizational culture based on the different core values

Common Elements of Organizations: four proposed by Edgar schein

common purpose: the means for unifying members, an organization without purpose soon begins to drift and become disorganized. The common purpose unifies employees or members and gives everyone an understanding of the organizations reason for being. coordinated effort: working together for common purpose, the common purpose is realized through coordinated effort, the coordination of individual efforts into a group or organization wide effort. Although it's true that individuals can make a difference, they cannot do everything by themselves. division of labor: Also known as work specialization, is the arrangement of having discrete parts of a task done by different people, even a two person crew operating a fishing boat probably has some work specialization - one steers the boat and the other works the nets. With a division of labor, an organization can parcel out the entire complex work effort to be performed by specialists, resulting in greater efficiency.

Level 2: Espoused Values

explicitly stated values and norms preferred by an organization, as may be put forth by the firms founder or top manager. An example is the founders of technology company Hewlett-Packard stress the HP way a collegial egalitarian culture that give as much authority and job security to employees as possible. Enacted values represent the values and norms actually exhibited in the organization.

orientation

helping the newcomer fit smoothly into the job and the organization

Systems approach to change

inputs, target elements of change, outputs, feedback A systems approach to change presupposes that any change no matter how small has a rippling effect throughout an organization Inputs: readiness for change is defined as the beliefs attitudes, and intentions of the organizations staff regarding the extent of the changes needed and how willing and able they are to implement them. Readiness has four components: who strongly the company needs the proposed change, how much the top managers support the change, how capable the employees are of handling it, and how pessimistic or optimistic the employees are about the consequences of the result Target elements of change: four levers that mangers May use to diagnose problems 1 people, their knowledge ability attitudes motivation and behaviors 2 organizational arrangements such as policies procedures roles structure rewards and physical setting 3 methods processes work flow job design and technology 4 social factors culture group processes interpersonal interactions communication and leadership

Organizational design

is concerned with designing the optimal structures of accountability and responsibility that an organization uses to execute its strategies. Three types: traditional designs, horizontal designs, and designs that open boundaries between organizations 1.) traditional designs: traditional organizations tend to favor structures that rely on a vertical management hierarchy, with clear departmental boundaries and reporting arrangements as follows: simple structure for the small firm, found in early entrepreneurial stages, an organization with simple structure has authority in a single person, a flat hierarchy, few rules, and low work specialization. The functional structure, grouping by similar work specialties, in a functional structure people with similar occupational specialties are put together in formal groups. Common place structure seen in all kinds of organizations, for profit and non profit 2.) horizontal designs: eliminating functional barriers to solve problems A horizontal design, also called a team based design, teams or workgroups either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal bodies 3.) designs that open boundaries between organizations: hollow, modular, and virtual structures The opposite of a bureaucracy, with its numerous barriers and divisions, a boundary less organization is a fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks. The collaborators may include not only coworkers but also suppliers, customers, and even competitors. The form of the business is ever changing and business relationships are informal. The hollow structure: often called a network structure, the organization has a central core of key functions and our sources other functions to vendors who can do them for cheaper or faster. A company with a hollow structure might retain such important core processes as design or marketing outsource most other processes such as Human Resources, warehousing, distribution, thereby seeming to hollow out the organization.

The three levels of organizational culture

observable artifacts, espoused values, basic assumptions

Performance Management

set of processes and managerial behaviors that involve defining, monitoring, measuring, evaluating, and providing consequences for performance expect

How employees learn culture

symbols, stories, heroes, rites and rituals, and organizational socialization

Organizational socialization

the process by which a person learns the values, norms, and required behaviors which permit him to participate as a member of the organization

Delegation

the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy, to be more efficient managers are expected to delegate as much of their work as possible. 70% rule, if the person you would like to perform the task is able to do it at least 70% as well as you can, then you should delegate it

Predicting Future Employee Needs

the staffing the organization might need the likely sources for staffing Human resource inventory: a report listing your organization's employees by name, education, training, languages and other important information.