Professional MBA MAN 6244 Organizational Behavior Session 1

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Professional MBA MAN 6244 Organizational
BehaviorSession 1

• Class 2009, Session II
• Orlando Metro West
• Spring 2008
• Dr. B. Wayne Rockmore, APS

This PowerPoint presentation is intended to be a
supplement to your class notes, not a replacement
for them. It provides a general outline of
topics and their relationship to each other.
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Todays Agenda

• Session 1
• Introduction Syllabus
• Introduction to Organizational Behavior (OB)
• MEA Organizational Change
• Session 2 Agenda
• Company Name Logo
• Team Assignments
• Select Company Presidents (Facilitators)
• MEA Exercise
• Now, Thats Bad Management (NTBM)

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Member Information(Note Card)

• Complete Name Job Title (Key duties)
• Executive/Managerial/Supervisory Experience
• Number of Direct and Indirect Employees Reports
• Ultimate Career Aspiration
• Adaptor or Innovator
• Personal Interest (Avocation, Interests)
• Something Unique about yourself

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Todays Sessions 1 Key Issues and Questions?

• Why is Organizational Behavior OB in
• the PMBA program?
• Does Management Matter?
• Is there a difference between the term
• Managers and Leaders?
• Do Leaders (Managers) matter?
• The Workplace Challenge The Big
• Picture
• Macroenvironmental Analysis (MEA)
• Organizational Change Breaking the
• Brain Barriers
• Organizational Structure (Design)

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Why Study OB?Great Leaders Focus On

• Do I know what is expected of me at work?
  (communication, leadership, motivation)
• Do I have the materials and equipment I need to
  do my work right? (motivation, power, orgl
  structure)
• Do I have the opportunity to do what I do best
  every day? (motivation, leadership, orgl
  structure)
• In the last 7 days, have I received recognition
  or praise for good work? (communication,
  leadership, personality)
• Does my supervisor, or someone at work, seem to
  care about me as a person? (communication,
  leadership, stress)
• Is there someone at work who encourages my
  development? (leadership, motivation)

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Management As a Profession

• A relatively new profession
• About 125 years
• Much younger than law, engineering, medicine
• Rise of large industrial organizations impossible
  without the rise of the managerial class
• Previously either owner or laborer
• No one was in charge of the means of production
  without owning itmanagers changed that
• Still learning about how to do it well (Issue of
  Change)

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What to Do Managers Do?

• Interpersonal roles
• Figurehead
• Leader
• Liaison
• Informational
• Monitor
• Disseminator
• Spokesperson
• Decisional
• Entrepreneur
• Disturbance handler
• Resource Allocator
• Negotiator

• Activity Characteristics
• 7 minute/activity
• Not much strategic planning
• Multi-task, quick decisions
• May know the best thing but may not be able to
  access or implement

Mintzberg
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Key Issues Topic IssuesDoes MANAGEMENT
Matter? Do MANAGERS matter?Is There a
Difference between MANAGERS and LEADERS?Are
Managers Always Leaders?
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Early Management Thinkers

• Max Weber Bureaucracy (before bureaucracy had a
  negative connotation) Hire for position rather
  than specific person
• Frederick Taylor Scientific Management (One
  Best Way determined scientifically)
• Elton Mayo Human Relations (Hawthorne Studies)
  work places are actually complex social
  settings
• where Managers need to understand worker
  attitudes, informal networks, human need,
  social relationships and emotion
• Herb Simon Non-rational Models Managers (all
  humans) are quasi-rational
• We Satisfice (rather than optimize) because of
  Bounded-rationality.
• Abraham Maslow Needs Theory
• Douglas McGregor Theory X and Theory Y

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Strategies managers use (most frequent to least
frequent)

• Form alliances and coalitions
• Present a persuasive viewpoint
• Deal directly with key decision makers
• Use data to convince others
• Focus on the needs of the target group
• Work around roadblocks
• Exaggerate information
• Use personal attributes

• Use contacts for information
• Surround self with competent others
• Deal with others socially
• Be persistent
• Offer favors/monetary rewards
• Use threats
• Commit the uncommitted
• Use organizational rules
• Give guarantees
• Discredit the opposition

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Does Management Matter?

• High performance work practicesa s.d. increase
  in work practice translates to
• 7.05 decrease in turnover
• 27,044/employee increase in sales
• 18,641/employee increase in market value
• 3,814/employee increase in profits
• Huselid Becker (1995) 968 firms studied

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Seven Practices of Successful Organizations
(Pfeffer, 1999)

• Employment security
• Selective hiring
• Self-managed teams/decentralized organizational
  design
• Extensive development

• Comparatively high compensation contingent on
  organizational performance
• Reduction in status differences
• Sharing information (trust)

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Management Does Matter

• Key is in how managers think about employees
• Are people costs to be reduced?
• Are employees opportunistic, free riders,
  untrustworthy, require close supervision?
• OR
• Are employees intelligent, motivated, trustworthy
• Are employees fundamental resources that provide
  a competitive advantage

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OK, but do MANAGERS matter?

• Interviews and surveys of over 1 million
  employees, over 25 years.
• Hundreds of questions
• Found twelve items that related most strongly to
  a healthy workplace
• First, Break All the Rules (M. Buckingham
  C. Coffman, 1999)

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• They (Buckingham Coffman) found six of these
  twelve items that related a healthy workplace
  most strongly with positive performance
  (productivity, profitability, retention, and
  customer satisfaction)
• Two studies
• Across 2500 business units in 24 companies across
  12 industries
• Between high and low performing units within the
  same company

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Measuring Strong Workplaces

• Do I know what is expected of me at work?
• Do I have the materials and equipment I need to
  do my work right?
• At work, do I have the opportunity to do what I
  do best every day?
• In the last 7 days, have I received recognition
  or praise for good work?
• Does my supervisor, or someone at work, seem to
  care about me as a person?
• Is there someone at work who encourages my
  development?

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Measuring Human Capital

• I know what is expected of me at work.
• I have the materials and equipment I need to do
  my work right.
• I have the opportunity to do what I do best every
  day.
• In the last 7 days, I have received recognition
  or praise for good work.
• My supervisor, or someone at work, seem to care
  about me as a person.
• There someone at work who encourages my
  development.
• (1strongly disagree 5strongly agree)

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First, Break All the Rules

• To be a great manager, figure out ways to get 5
  answers to all of those questions
  (simultaneouslythats tough)
• Two perspectives The manager and the employees

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Managers REALLYDo Matter!

• Gallup found that managers trump companies. (You
  might join IBM. But, what keeps you there and
  performing is your immediate supervisor.)

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Gallup Study The Impact of Positive Employee
Attitudes

• 10 less employee turnover
• 24 higher profit

And again, the immediate manager was found to
have the greatest impact on employee attitudes.
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The Key To Employee Performance

• The most frequently cited reason people are
  dissatisfied and quit their jobs
• my immediate manager/leader
• The most frequently cited reason people are stay
  on the job and enjoy their work is
• my immediate manager/leader

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To Re-engage Employee Loyalty
there needs to be a major focus on the immediate
manager
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The Immediate ManagerThe Major Key to
Performance

• Most companies have good programs and policies in
  place, but these alone do not enhance employee
  performance.

The immediate manager has the greatest impact on
employee performance.
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Workplace ChallengeThe Big Picture
Execution thru People
Execution thru People
Strategy Goals
Process Systems
Identifying behaviors we want people to engage
in
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EVEN WITH PSYCHIC TECHNOLOGYUNCERTAINTY AND
RISK ARE A WAY OF LIFE
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MEA ENVIRONMENTAL SEGMENTS (MEA)

• POLITICAL
• Special Interest Groups
• Regulatory

• SOCIAL
• Demographics
• Life-styles
• Values

• TECHNOLOGICAL
• Pacing
• Key
• Base

• ECONOMIC
• Cyclical
• Structural

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MEA Three Goals

• 1. Identify and Understand existing and potential
  changes in the Macroenvironment
• 2. Integrate relevant environmental information
  into the organizations decision-making process
• 3. Stimulate Strategic Thinking (develop,
  evaluate, and select strategic alternatives a
  strategic decision

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MACROENVIRONMENTAL ANALYSIS (MEA)
Competition
Natural Environment
TASK ENV
Public Image
Customers
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Regulatory (Government / Courts)
Economic Conditions
PTE
Suppliers
Special Interest Groups
Labor Market (Critical Skill) Availability
Technology Criticality Rate of Change
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DIMENSIONS of ENVIRONMENTAL UNCERTAINTY

• ? Degree of Importance
• Customer (Market)
• Technology
• Competitors
• Supplier
• Government
• Labor Relations
• Economy
• Public Image

• ? Degree of Change
• Customer (Market)
• Technology
• Competitors
• Supplier
• Government
• Labor Relations
• Economy
• Public Image

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DO ORGANIZATIONS PERCEIVE UNCERTAINTY DIFFERENTLY?

• ? LESS UNCERTAIN
• U.S. FIRMS
• COMPETITION

• ? MORE UNCERTAIN
• DOMESTIC FIRMS
• TECHNOLOGY
• LABOR AVAILABILITY
• ECONOMY
• GOVERNMENT REGS

• ? LESS UNCERTAIN
• INTERNATIONAL FIRMS
• GOVERNMENT REGS
• U.S. ECONOMY

• ? MORE UNCERTAIN
• INTERNATIONAL FIRMS
• MARKET
• ECONOMY
• COMPETITION

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ENVIRONMENTAL ? ORGANIZATIONAL LINK FRAMEWORK
PERCEIVED TASK ENVIRONMENT
FIRM PERFORMANCE
STRATEGY
STRUCTURE
RESOURCE VALUATION (/-)
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OB and Organizational Levels
Corporate Strategy
Two-Way Influence
Business Strategies
Two-Way Influence
Functional Strategies
Two-Way Influence
Sub-functional (Operating Level) Strategies
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ENVIRONMENTAL ASSESSMENT AND UNCERTAINTY
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External (Environmental) Forces of
Organizational Change

• Fashion Pressures FADs very prominent in the
  United States
• Mandated Pressures
• Formal Coercive (Legislative, Legal, Adjudicated,
  Accepted Practices)
• Informal Coercive (Social Change, Values
  isomorphism)
• Geopolitical Technological, Global Economic
  Integration and Political Economic (Socialism v.
  Capitalism), Market Demand
• Market Restructuring or Decline
• Hypercompetition Pressures consumer and
  operational responsiveness
• Reputation Credibility Pressures Corporate
  Governance, Ethics, Social Responsibility
  Liability

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TEAMMEAEXERCISE

• Select a Company where one of your Team members
  now works.
• Conduct an MEA by identifying present and
  developing issues relevant to that company for
  each MEA segment
• Technological
• Social
• Economic
• Political