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DAY 1.

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Title: DAY 1.


1
DAY 1.
  • ORGANIZATIONAL BEHAVIOR AND ISSUES
  • Dr. Alan Hamlin
  • BU 316
  • Phone 435-5865417
  • Email hamlin_at_suu.edu

2
  • Introduction
  • Syllabus Turnitin.com Group Assignments
  • QA

3
  • FUNDAMENTAL CONCEPTS OF MANAGEMENT
  • Historical Perspective- Machiavelli, Weber,
    Taylor, Mayo
  • Functions of Management- Planning, Organizing,
    Directing, Controlling
  • Human Relations- Psychology, Sociology,
    Anthropology
  • Formal, Informal Organizations
  • Closed vs. Open Systems

4
  • Essential Concepts of Management
  • Authority and Responsibility
  • Division of Labor
  • Span of Control, Unity of Command
  • Functions of Management (Planning, Organizing,
    Directing, Controlling)
  • Theory X and Theory Y
  • Management by Objectives (MBO)
  • Situational Leadership

5
Fundmental Concepts of Management
  • KEY TERMS AND CONCEPTS
  • Power and influence approach
  • Machiavellianism
  • Waves of change/Alvin Toffler
  • Richard Leakey
  • Freud/Adler/Jung
  • Unionism
  • Situational Leadership

6
Historical Patterns Of Leadership
  • Pre-600 BC
  • Power/influence approach
  • Physical Size
  • Influence of supernatural uncontrollable
    elements
  • Large, Powerful Mostly Male Gods
  • 1st Wave Hunter-Gatherer to Agricultural Based
    Lives Advent of
    Kingdoms

7
Historical Patterns Of Leadership
  • 600 BC to Christ
  • Greece Birth of science, arts, etc.
  • Control of environment
  • Great minds Socrates, Plato, Aristotle,
    Pythagorus, Ptolemy, Euclid, Homer
  • Great religious leaders born Buddha, Zoroaster,
    Confusius, Lao-Tsu, Jeremiah
  • Leaders emphasize intellectual, humanitarian
    attributes rather than physical size

8
Historical Patterns of Leadership
  • 0 BC to 1800 AD
  • Nicollo Machiavelli
  • Rise of Science- Newton, Bacon, Copernicus
  • Control over elements
  • God becomes personal, Monotheism
  • Common man revolts, birth of republicanism
  • Magna Carta, American and French revolutions
  • 2nd Wave

9
Historical Patterns of Leadership
  • 1800 AD to 1930 AD
  • Explosion of human rights movements
  • Focus on individual wants and needs
  • Birth of psychology and social sciences-Freud
    et.al.
  • Expansion of modern capitalism- Carnegie, Ford
  • Humanitarian scientists- Edison, Einstein,
    Schweitzer
  • Common Man politicians- Lincoln, Gandhi, FDR

10
Historical Patterns Of Leadership
  • 1930-Present
  • Development of Behavior Theories- Pavlov,
    Skinner, Maslow, McGregor, Ouchi
  • Human Rights Movement- unions, 1960s
  • Government regulation of business
  • 3rd Wave- rise of situational leadership

11
  • INDIVIDUAL DIFFERENCES
  • KEY TERMS AND CONCEPTS
  • Freudian ideology (Id, Ego, Superego)
  • Defense Mechanisms
  • Maslows Hierarchy/Drive Reduction Theories
  • Maintenance Factors
  • Dealing With Frustration
  • Reactions to Stress
  • Gender Issues/ Lifestyle (i.e. gay) Issues

12
  • Defense Mechanisms
  • Aggression
  • Avoidance (withdrawl)
  • Rationalization
  • Compensation (over-compensation)
  • Negativism
  • Resignation
  • Repression
  • Fixation/Obsessive Thinking
  • Displacement
  • Flight
  • Conversion

13
  • PERSONALITY PERCEPTION
  • KEY TERMS AND CONCEPTS
  • Influences on personality development
  • Locus of control
  • Introversion/extroversion
  • Personality theories
  • Perception and communication
  • Verbal/Non-verbal communication
  • Stereotyping

14
  • Influences on personality
  • Heredity
  • Culture
  • Family
  • Group membership roles (peers)
  • Life experiences Locus of control
  • Introversion/extroversion
  • Trait theory- born or learned?

15
  • Perception
  • Elements in Perceptual Process
  • Environmental Stimuli
  • Observation (sense stimulation)- taste, smell,
    sight etc.
  • Perceptual selection- size, intensity,
    familiarity, learning
  • Perceptual organization- grouping, linking
  • Interpretation- stereotyping, projection, halo
    effect, expectancy
  • Response- covert (attitudes, feelings), overt
    (behavior)

16
  • Effects on perception
  • Heredity
  • Environmental background (positive or negative)
  • Peer pressures
  • Projection
  • Snap judgements
  • Stereotypes
  • Halo Effect
  • Pre-set mental condition
  • Locus of control

17
  • MOTIVATION
  • KEY TERMS AND CONCEPTS
  • Expectancy Theory
  • Performance function of (ability x motivation)
  • Drive Reduction Theory
  • Maslows Hierarchy
  • Frederick Herzberg
  • Douglas McGregor
  • Hygiene and Motivation Factors
  • Dissatisfaction

18
  • Motivation essentials
  • Communication basics
  • Encode message properly, reduce noise
  • Communicate face-to-face when possible
  • Use empathetic dialogue
  • Limit credibility gaps
  • Make sure timing is right
  • Avoid unnecessary wordiness

19
  • LEARNING THEORIES
  • KEY TERMS AND CONCEPTS
  • Pavlovs Classical Conditioning
  • Stimulus-Response theory
  • Skinners Reinforcement concepts
  • Positive reinforcement/punishment
  • Ausubels Meaningful Reception theory

20
  • Learning Theories
  • Ivan Pavlovs Classical Conditioning
  • Stimulus-Response
  • Unconditioned stimulus (meat)
  • Unconditioned response (salivation)
  • Conditioned stimulus (bell substituted for meat)
  • Conditioned response (salivation)

21
  • B.F. Skinner- Operant Conditioning using
    reinforcement
  • Positive reinforcement reward for good behavior
  • Negative reinforcement negative event removed as
    reward
  • Punishment penalty to stop bad behavior

22
  • Cognitive Learning Theories
  • Behavior explained in terms of attitudes, ideas,
    information, experiences and perceptions.
  • Learning is viewed as a change in knowledge and
    understanding due to a reorganization of past
    experiences and information.
  • Ausubels Meaningful Reception theory
  • How quickly and thoroughly one learns depends on
  • 1) how closely linked new and old information
    are, and
  • 2) nature of relationship established between new
    and old information (e.g. if info is perceived as
    artificial, data quickly forgotten, hence the
    need to make it meaningful).

23
  • Learning Fundamentals
  • Behaviors that are rewarded are more likely to
    recur.
  • To be effective, rewards must happen immediately
    after desired behavior
  • Threat and punishment have uncertain effects on
    learning
  • Learners progress only as far as needed in order
    to achieve their purposes
  • Most effort occurs when learner perceives a
    range of challenge
  • Learners focus more on projects they themselves
    select
  • Pupils think most when they encounter an
    obstacle, puzzle or difficulty.
  • People remember new data that confirms their
    previous attitudes

24
  • MANAGEMENT ISSUES TODAY
  • Unions
  • Trends in participation
  • Cross-country comparisons
  • Tools used to pressure business
  • Problems ahead

25
  • Management Issues Today
  • Globalization
  • Technology
  • Access to capital
  • Changing Worker Demographics
  • Regional Trade Agreements
  • Others
  • What does future hold? 5 years? 10 years?

26
  • ISSUE Corporate Relocation and Expansion
  • Business Executive Perceptions vs. Site Locators
  • Strategies of corporations to fund expansion

27
2005 Top 10 Site Selection Criteria
  • Business Executives Site Locators
  • 1) Labor costs 1) Labor costs
  • 2) Highway accessibility 2) Skilled labor
    force
  • 3) Skilled labor force 3) Highway
    accessibility
  • 4) State/local incentives 4) Prox. to major
    mkts.
  • 5) Energy avail/costs. 5) Avail. of land
  • 6) Corporate tax rates 6) State/local
    incentives
  • 7) Construction costs 7) Telecom.
    availability
  • 8) Tax exemptions 8) Tax exemptions
  • 9) Telecom. Availability 9) Construction
    costs
  • 10) Environmental regs. 10) High speed
    Internet

28
  • 2004 Top Quality of Life Factors
  • in Site Selection
  • Business Executives Site Selectors
  • 12) Low crime rate 17) Low crime rate
  • 15) Health facilities 18) Colleges in area
  • 16) Pub. school ratings 19) Pub. schl. rtgs.
  • 20) Climate 24) Climate
  • 21) Cultural opps. 23) Cultural opps.

29
DAY 2.
  • Intra Group Dynamics
  • Definition two or more people banding together
    to accomplish a common purpose
  • Characteristics
  • Common motive
  • Members affected differently by their interaction
  • Group has structure with different degrees of
    status
  • Group has standardized norms and values affecting
    behavior

30
  • Types of Groups
  • Formal gives order cohesion to
    organization
  • allows for div. of labor/specialization
  • created to accomplish specific org. goals
  • rigid norms and sanctions
  • Informal spontaneous, emotional and flexible
  • created to meet needs not met by formal org.
  • exist ONLY to satisfy needs of members,
    and are ends in themselves
  • much peer group pressure

31
  • Informal Groups
  • What gives them cohesion?
  • A) Members feeling of belonging
  • B) Members feeling of increased power
  • C) Shared goals
  • D) Predominance of certain needs and wants

32
Types of Groups
  • Membership Groups
  • Does not always change behavior
  • Members belong, but groups is only minor
    influence
  • on behavior
  • Examples Universities, churches
  • Reference Groups
  • Groups which DO influence attitudes of members
    and those who are not members who admire the
    group
  • Examples Universities, churches
  • A GROUP MAY BE A MEMBERSHIP GROUP TO JOHN, BUT A
    REFERENCE GROUP TO PAUL. THE CHOICE IS HIGHLY
    PERSONAL.

33
  • Group norms rules of accepted behavior
    established by the group.
  • - provide standards of attitude and behavior.
  • - conformity- modification of behavior in
    direction of group norm due to group pressure.
    Examples clothing, speaking terms, hairstyles.
  • - cohesiveness- power of a group to think and act
    as a single unit in pursuit of a common goal.
    THE GREATER THE COHESIVENESS OF A GROUP, THE
    GREATER ITS POWER TO ACHIEVE ITS GOAL.

34
  • Group Status
  • Based on A) Physical, mental social abilities
  • B) Expertise at performing tasks
  • C) Importance of the task being
    performed
  • How does status affect group members behavior?
  • A) Behavior is directed toward preserving and
    improving ones status
  • B) Any change perceived as disruptive to ones
    status is considered threatening, as is generally
    opposed

35
Groupthink
  • Symptoms
  • 1) Invulnerability
  • 2) Rationalization
  • 3) Morality
  • 4) Stereotyping
  • 5) Peer pressure
  • 6) Self-censorship
  • 7) Unanimity

36
  • Groupthink effects on decision-making
  • 1) Few alternatives
  • 2) Little reexamination of preferred alternatives
  • 3) Little reexamination of rejected alternatives
  • 4) Rejection of expert opinions
  • 5) Selective bias of new information
  • 6) No contingency plans
  • RESULT Lower performance, poor decision quality

37
  • Intra Group Roles
  • Definition A group role is a behavior pattern
    that others expect of a person when he/she
    interacts with them.
  • Problem when expectations of others change, or
    when a persons perception of his/her role
    changes when others do not, then these can
    result
  • Role Ambiguity- uncertainty about expected
    behavior
  • Role Conflict- when expectations conflict with
    each other

38
  • Stages of Group Development
  • Forming- group begins, initial roles established
  • Storming- intense debate about goals, rapid
    growth
  • Norming- pressure to conform, some goals reached
  • Performing- possible failure, internal pressures
  • Adjourning- intense internal/external pressure,
    some groups fail

39
Dynamics Between Groups
  • Most important leadership question how to deal
    with inter-group conflict. Could be caused by
    goal conflict, historical/tradition conflict, or
    the emergence of new trends.
  • Most important problem leaders who emerge to
    the top of their respective groups do so BECAUSE
    THEY HAVE THE MOST STATUS, and this is because
    they are usually the most passionate and zealous
    group members.
  • ANY CONCESSION BY A LEADER IS PERCEIVED AS
    WEAKNESS BY HIS/HER CONSTITUENTS

40
  • How to resolve inter-group conflict?
  • 1) Force
  • 2) Mediation
  • 3) Arbitration
  • 4) Integration (concession/compromise)
  • 5) Super-ordinate goal (over-riding issue keeps
    parties at the bargaining table)

41
US Laws affecting groups in business
  • Civil Rights Act 1866-no discrimination in
    private or public employment
  • Civil Rights Act 1966- race, color, sex, religion
    etc.
  • Ex. Order 11246- Affirmative Action
  • Equal Pay Act 1963- equal pay for similar work
  • Age Discrimination Act 1967
  • Rehab Act 1973- affirmatively hire handicapped
  • ADA, FMLA, others

42
POWER AND AUTHORITY
  • Power the ability to exert influence over
    others
  • Authority the power given by others to
    accomplish a task
  • Types of Power
  • 1) Coercive Power
  • 2) Reward Power
  • 3) Legitimate Power
  • 4) Expert Power
  • 5) Charismatic Power
  • 6) Referent Power

43
  • Politics the art of negotiation and compromise
  • Political power devolves from
  • 1) A high need for power
  • 2) A Machiavellian interpersonal style
  • 3) An internal locus of control
  • 4) A preference for risk-taking

44
Political Power is used in business
  • Strategy Relative Amount of Use
  • Mgrs to Mgrs to
  • Superiors
    Subordinates
  • Reason 1 1
  • Coalition 2
    4
  • Friendliness 3
    3
  • Bargaining 4
    5
  • Assertiveness 5
    2
  • Higher Authority 6
    6
  • Sanctions -
    7

45
Power Models
  • Power/influence French/Raven
  • Getzel/Guba
  • Trait/Skill Katz
  • Maslow, Herzburg
  • Behavior Drucker
  • McGregor
  • Ouchi, Likert
  • Situational Fiedler
  • Hershey/Blanchard
  • Blake/Mouton

46
ETHICS
  • The set of attitudes and values that determines
    just and unjust, right and wrong, moral and
    immoral for a society
  • Factors that influence ethics
  • 1) Situational Factors- prevailing legal and
    societal views
  • 2) Lifes experiences
  • 3) Family background
  • 4) Values and morals- religion and culture
  • 5) Peers

47
Ethics in organizations
  • Corporate culture
  • Policies and Rules
  • Role of the leader
  • Other?

48
  • Prejudice- an internal phenomenon relating to
    an attitude of pre-judging without an adequate
    basis.
  • - a learned response, not inborn
  • - can be for or against a certain
    group based on economic, racial, religious or
    other factors.
  • Discrimination- an external phenomenon resulting
    from prejudice which makes a distinction in favor
    or against one person or group as compared with
    others.

49
ETHICAL DILEMMAS TODAY
  • Discuss

50
INTERNATIONAL ISSUES, MNCs
  • Trends in international business- discuss
  • NAFTA, GATT, EU and regional trading blocks
  • Currency issues
  • Cultural issues- soverignty, uncertainty
    avoidance,
  • collectivism,
    expatriates vs. locals
  • Risks in international business
  • MNC organizational design- by product, region,
    matrix

51
LEADERSHIP PROBLEMS, PROBLEM-SOLVING STYLES, and
CONFLICT RESOLUTION
  • Problems
  • Lack of motivation
  • Peter Principle- highest level of incompetence
  • Parkinsons Law- work expands to fill time avail.
  • How we lead
  • Theory X vs. Y
  • Autocratic, democratic, laissez-faire
  • Management by Objectives

52
  • Jungs Problem Solving Styles
  • Exercise

53
Conflict Processes
  • Definition any situation in which there are
    incompatible goals, cognitions or emotions within
    or between individuals or groups that leads to
    opposition or antagonistic interaction.
  • Goal conflict- incompatible desired end states
  • Cognitive conflict- inconsistent ideas or
    thoughts
  • Affective conflict- incompatible feelings or
    emotions

54
  • Intra-personal conflict increase in intensity
    as the number of alternatives increases the
    alternatives tend toward equality and as the
    issues increase in importance.
  • Inter-personal conflict between two or more
    individuals.

55
  • Interpersonal Conflict Handling Styles
  • Avoidance style- unassertive and uncooperative
  • Forcing style- assertive and uncooperative
  • Accomodative style- uncooperative and unassertive
  • concerning ones own desired outcomes
  • Collaborative style- cooperative and assertive
  • Compromise style- intermediate in both areas
  • Effective leaders handle conflict with
    collaboration and compromise

56
WORK DESIGN
  • Specialization and division of labor
  • Scientific Management
  • Open vs. closed systems
  • Job descriptions
  • Job Enlargement
  • Job Enrichment
  • Group Issues
  • Flextime
  • Job Sharing
  • Fun

57
DAY 3.
  • ORGANIZATIONAL DESIGN AND
  • STRUCTURE
  • 1) Max Weber, centralized hierarchy
  • 2) Division of labor, span of control, unity of
    command, Scaler principle, A/R
  • 3) Line and staff organizations (by product,
    geographic area, class of customer)
  • 4) Criticisms- Marx (worker alienation)
  • - Thoreau, Emerson (money
    paramount, too much power)
  • - Sinclair (The
    Jungle-safety), Carson (Silent Spring-pollution)
  • - Nader (Unsafe at Any
    Speed-corruption, quality)
  • 4) Modern adaptations since 1987-
  • decentralization
  • downsizing
  • re-engineering
  • knowledge management

58
  • New Designs
  • Downsized hierarchies
  • Matrix organizations- pros and cons
  • Collegial organizations, ad hoc, team approaches
  • MA, Joint Ventures, Strategic Alliances
  • Forced by -Changing environment (simple to
    complex, stable to dynamic, local to global)
  • -Changing technology
    (more work flow uncertainty, task uncertainty,
    interdependence)
  • -Changing strategic choices
    (products and services offered, geographic areas
    served, etc.)

59
ORGANIZATIONAL CULTURE
  • Definition Attitudes, values, beliefs, norms
    and customs of an organization.
  • Factors Individualism/Collectivism
  • Power distance
  • Uncertainty avoidance
  • Masculinity/Femininity

60
  • ABOUT CORPORATE VALUES
  • Values are taken for granted, not written down
  • An organizations values need to become the
    employees own values- need to match
  • Often firms train employees about values
  • Importance of mission statements, core values

61
  • Theory Z- William Ouchi
  • Commitment to employees
  • Slow to evaluate and promote
  • Non-specialized employee careers
  • Collective decision making
  • Collective responsibility
  • Lifelong employment

62
  • Deal and Kennedy Model
  • Organizational culture is a result of
  • Heroes
  • Values
  • The cultural network
  • Rites and rituals

63
  • Peters and Waterman Framework
  • Bias for Action
  • Closeness to customer
  • Encouragement of autonomy/entrepreneurship
  • Encouragement of productivity through people
  • Hands-on management
  • Stick to the knitting
  • Simple form, lean staff
  • Organization should be both loose and tight

64
  • ARIP Model
  • Aristotilean Realist Idealist
    Pragmatist
  • Self Motivated Laws/Rules
    God-related People-oriented
  • Formal dresser Formal dressers
    Formal dressers Casual dressers
  • Confidant Accountability I w/n
    mislead you Humanist/welfare
  • Strong ego Order/orgnztn. High
    trust level Love oriented
  • Autocratic Autocratic
    Democratic Laissez-faire
  • Slow to delegate Slow to delegate
    Delegates Delegates
  • Likes order Loves order
    Order is good Order unimpt.
  • Demands territory Little flexibility-
    Uses laws/rules to Rules are relative
  • by the book help people
  • Visionary person Follower person
    Small group person Humanity person

65
  • Hard and Soft categories
  • Distance on model creates conflicting perceptions
  • Many people exhibit parts of multiple categories
  • Perceptual differences- Johari window
  • CEOs and Managers lean Aristotilean
  • Mid-level managers lean Realist or Idealist
  • Pragmatists work best in people-oriented jobs
    like sales education, or creative jobs like
    software and high-tech.

66
  • Different Strokes Contributions of Various
    Groups to US/Western EU Today
  • Greeks
  • Romans
  • Hebrews
  • Christians
  • Europeans (Anglo, French)
  • Africans
  • Hispanics
  • Asians

67
Dealing With Change
  • Lewins Process of Organizational Change
  • Old State-Unfreeze-Change-Refreeze-New State

68
Forces for Change Forces resisting
Change

  • Individual Factors
  • Knowledge explosion Selective attention and
    retention
  • Changing technology
    Habit
  • Communication improvements
    Dependence
  • Rapid product obsolescence
    Fear
  • Changing nature of the work force
    Economic factors
  • Quality of work life
    Security


  • Organizational Factors

  • Threats to power and influence

  • Organizational structure

  • Resource limitations

  • Fixed investments

  • Inter-organizational agreements

69
LEADERSHIP IN THE FUTURE
  • Naisbitts 10 Megatrends
  • Industrial to Information Society
  • Forced Technology to High Tech, High Touch
  • National to World Economy
  • Short-Term to Long-Term
  • Centralization to Decentralization
  • Institutional to Self-Help
  • Representative to Participatory Democracy
  • Hierarchies to Networking
  • North to South/West
  • Either/Or to Multiple Option

70
US News World Report Model
  • Characteristics of Successful 21st Century
    Executive
  • Global Strategist
  • Master of Technology
  • Politician par Excellence
  • Leader/Motivator

71
Fortune Magazine Model
  • 7 Keys To Business Leadership
  • Trusting Subordinates
  • Developing Vision
  • Keeping Your Cool
  • Encouraging Risk
  • Being an Expert
  • Inviting Dissent
  • Simplify

72
Leadership Magazine Model
  • Challenge the Process
  • Inspire a SHARED Vision
  • Enable Others to Act
  • Model the Way
  • Encourage the Heart

73
Fortune 500 Survey
  • WHAT CEOs SEE AS IMPORTANT
  • Interpersonal the most difficult tasks
  • 1) Managing others
  • 2) Firing
  • 3) Communicating
  • 4) People relations
  • 5) Delegating
  • 6) Handling conflict
  • 7) Hiring
  • 8) Patience
  • 9) Control
  • 10) Organizing

74
Fortune 500 Survey
  • WHAT CEOs SEE AS IMPORTANT
  • Personal the most difficult tasks
  • 1) Planning
  • 2) Time management
  • 3) Being a corporate animal
  • 4) Financial management
  • 5) Decision making
  • 6) Perspective
  • 7) Home/work conflict
  • 8) Administration
  • 9) Staying flexible
  • 10) Self-discipline

75
Fortune 500 Survey
  • WHAT CEOs SEE AS IMPORTANT
  • Activities that take up the most CEO time
  • 1) Planning
  • 2) Meetings
  • 3) Reading
  • 4) Paperwork
  • 5) Controlling
  • 6) Staff interruptions
  • 7) Telephone
  • 8) Communicating
  • 9) Thinking
  • 10) Problem solving

76
Fortune 500 Survey
  • WHAT CEOs SEE AS IMPORTANT
  • Activities CEOs See as Most Important
  • 1) Strategic Planning
  • 2) Decision making
  • 3) Self-discipline
  • 4) Analytical abilities
  • 5) Hard work
  • 6) Flexibility
  • 7) Financial management
  • 8) Time management
  • 9) Knowing the business
  • 10) Clear thinking

77
Fortune 500 Survey
  • WHAT CEOs SEE AS IMPORTANT
  • Key factors in their own career development
  • 1) A need to achieve results
  • 2) An ability to work easily with variety of
    people
  • 3) Challenge
  • 4) Willingness to take a risk
  • 5) Early overall responsibility for important
    tasks
  • 6) A breadth of experience before age 35
  • 7) A desire to seek new opportunities
  • 8) Ability to develop more ideas than peers
  • 9) Ability to change managerial style to suit
    occasion
  • 10) Determination to get to top ahead of others

78
Group Presentations
  • Group 1 Effective Corporate Leadership
    StylesGroup 2 Ethical Dilemmas in
    BusinessGroup 3 International Business Issues

79
Day 4.
  • ENVIRONMENTAL SCANNING
  • WHAT IT IS Environmental Scanning is the
    acquisition and use of information about events,
    trends and relationships in an organizations
    external environment, the knowledge of which
    would assist management in planning the
    companys future course of action (Choo and
    Auster, 1993).
  • WHY IT IS IMPORTANT Rapid changes both
    within and without their industries represent
    threats, and require business leaders to be
    familiar with them in order to rank them in
    order of 1) importance, and 2) likelihood that
    they will influence their particular business
    for bad or good.

80
  • Scanning Improves Performance
  • 1) Scanning firms significantly outperformed
    non- scanning firms (50 US firms, P/E ratios,
    1975-1980)
  • 2) Small firms boundary spanning activities
    were strongly related to financial performance
    (82 firms)
  • 3) Strategy and environmental scanning had a
    substantial influence on ROA and ROE (65 firms,
    US food svc industry, 1982-1986)
  • 4) CEOs of highly performing firms scanned more
    frequently, intensely and broadly (50 firms)

81
  • Scanning Improves Performance
  • 5) Advanced scanning systems are related to
    performance (Fortune 500 firms, growth and
    profitability)
  • 6) Hospitals with more sophisticated
    scanning functions perform
    significantly better (600 hospitals,
    occupancy rates, per bed costs)

82
  • THE SCANNING PROCESS
  • INTERNAL SCANNING EXTERNAL SCANNING
  • ANALYSIS
  • Identifying strategic issues, opportunities and
    threats

83
  • OBJECTIVES OF SCANNING
  • 1) detecting important economic, social,
    cultural, environmental, health, technological,
    and political trends, situations, and events
  • 2) identifying the potential opportunities and
    threats for the institution implied by these
    trends, situations, and events
  • 3) gaining an accurate understanding of your
    organization's strengths and limitations
  • 4) providing a basis for analysis of future
    program investments

84
  • HOW SCANNING IS DONE
  • 1) Explore both sides of every issue to gain
    complete picture of issue.
  • 2) Think micro (immediate environment) AND
    macro (broader community).
  • 3) Use multiple lenses to look at the same
    information or situation. This includes
    economic, social and cultural angles, along
    with short and long-term perspectives.
  • 4) Triangulate information ways to confirm or
    contradict an observation additional sources
    that could be helpful identify important
    information gaps.

85
  • HOW SCANNING IS DONE
  • 5) Look for evidence on how your company is
    perceived re credibility, roles, values, etc.
  • 6) Identify what you DONT know as well as what
    you do.

86
  • SCANNING METHODS
  • 1) accessing networks agencies and
    organizations, personal contacts (yours and
    others)
  • 2) collecting reports, plans, program
    descriptions, etc.
  • 3) field trips, windshield surveys and other
    forms of observation
  • 4) media monitoring
  • 5) public meetings community forums
  • 6) focus groups
  • 7) key informant surveys (suppliers,
    distributors)

87
  • SCANNING METHODS
  • 8) public opinion polls 9) case studies
  • 10) oral histories
  • 11) futuring exercises
  • 12) visualization processes flow charts,
    trend diagrams, time lines, etc.

88
  • COMMON HAZARDS
  • 1) failure to incorporate diverse sources of
    information and diverse viewpoints
  • 2) failure to consider both external and
    internal perspectives
  • 3) failure to triangulate by using multiple
    methods
  • 4) failure to triangulate by viewing data
    through different lenses (e.g., social,
    economic, ethical, etc.)
  • 5) failure to consider micro environment/macro
    environment interactions

89
  • COMMON HAZARDS
  • 6) taking a deficit approach by exploring only
    needs and constraints without seeing
    opportunities and assets
  • 7) being too superficial/global or too narrowly
    focused
  • 8) not involving those who can act on the
    information
  • 9) promoting unrealistic expectations
  • 10) lack of decision criteria 

90
Group Presentations
  • Group 4 Technology and Its Affect on
    BusinessGroup 5 Productivity and Labor
    IssuesGroup 6 Cultural Issues Affecting
    MNCsGroup 7 Joint Ventures, MA, and Changing
  • Organizational Designs
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