MGT 6245 PMBA Organizational Behavior and Development

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MGT 6245 (PMBA) Organizational Behavior and
Development

• Dr. B. Wayne Rockmore
• Fall 2005

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. For
references, etc., see me.
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Team Formation

• This Week
• Personal Introductions Information
• Select Company Presidents
• Draft Teams and select officers
• KIA Exercise
• Next Week
• Company name, logo name plates
• Select your ELP leader
• Now thats bad management (next week)

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Team Formation

• Note Card Information
• Complete Name (indicate the name you preferred to
  be called)
• Gender
• Place of Work
• Job Title (Key duties)
• Career Interest
• Personal Interest (Avocation, Interests)

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Management thinkers History
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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

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MintzbergWhat to Do Managers Do?

• Interpersonal roles
• Figurehead
• Leader
• Liaison
• Informational
• Monitor
• Disseminator
• Spokesperson

• Decisional
• Entrepreneur
• Disturbance handler
• Resource Allocator
• Negotiator
• 7 min./activity
• Not much strategic planning
• Multi-task, quick decisions
• May know the best thing but may not be able to
  access or implement

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Frederick Taylor

• Scientific Management
• Time and motion studies
• One best way (scientifically determined)
• Primary focus MAXIMIZING EFFICIENCY
• 1) employees part of the production
  process
• - must be carefully selected and trained
• 2) tools and procedures must be
  standardized in
• accordance with the results of
  studies
• (observation)
• Second focus Human Motivation
• 1) workers primarily motivated by the
  desire for
• monetary gain
• (Frank and Lillian Gilbreth, too.)

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Elton Mayo

• Human Relations (Hawthorne Studies)
• Illumination study
• Relay room study
• Bank wiring room study
• Mayo concludes
• - work places are actually complex
  social settings
• - to comprehend we must understand
• - worker attitudes - informal
  networks
• - human needs - social
  relationships
• - emotion

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Max Weber

• Bureaucracy (before bureaucracy had a negative
  connotation)
• Need an organizational form that will allow
  organizations (large industrial organizations) to
  grow
• Hire for position rather than specific person
• V.P. of Finance
• Take human-error out of organizations
• (more when we cover organizational structure)

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Herb Simon

• Non-rational Models
• Managers (and all humans) quasi-rational
• Satisficing rather than optimizing
• Bounded-rationality

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Abraham Maslow

• Needs Theories
• Human needs drive behavior
• Hierarchy of Needs
• (more when we cover motivation)

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Douglas McGregor

• Theory X and Theory Y
• Basic beliefs about human (employee) nature
• Theory Xnegative view of human behavior (dislike
  work, must be coerced, controlled, avoid
  responsibility, prefer security, little ambition)
• Theory Ypositive view of human behavior
  (self-directed, responsibility seeking,
  innovative)

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Contemporary Management Thinkers

• Contingency approach
• Fit of approach to the situation
• Positive view of employees
• Although some recent attention to stability of
  individuals traits ( and -)

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Does Management Matter?
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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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Does Management Matter?

• Survival rate of 136 companies that initiated
  IPOs (Initial Public Offering)
• In 5 years only 60 still in existence
• Increased survival rate of 20 for valuing
  employees 42 increase for use of rewards
• (Controlling for size, industry, profits)
• Welbourne Andrews (1996)

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Seven Practices of Successful Organizations

• Employment security
• Selective hiring
• Self-managed teams/decentralized organizational
  design
• Extensive training
• Pfeffer (1999)

• Comparatively high compensationcontingent on
  orgl performance
• Reduction in status differences
• Sharing information

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Management Matters

• 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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• Im not shocked when people behave badly. I
  expect it. Im impatient with those who believe
  organizations should be designed to bring out the
  best in people when in fact I think we do well if
  we can prevent them from bringing out the worst.
• (Schrage, Fortune, Jan 21 2002, pp. 127-128)

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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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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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• At work, do my opinions seem to count?
• Does the mission/purpose of my company make me
  feel my job is important?
• Are my co-workers committed to doing quality
  work?
• Do I have a best friend at work?
• In the last six months, has someone at work
  talked to me about my progress?
• This last year, have I had opportunities at work
  to learn and grow?

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• 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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Managers REALLY matter

• Found that managers trump companies. (You might
  join IBM. 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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Measuring Human Capital

• 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

• 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?
• (1strongly disagree 5strongly agree)

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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)

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Mountain Climbing

• There is an order to the twelve questions
• Base camp What do I get?
• Do I know what is expected of me at work?
• Do I have the materials and equipment I need to
  do my work right?
• Camp 1 What do I give?
• At work, do I have the opportunity to do what I
  do best every day?
• In the last seven days, have I received
  recognition or praise for doing 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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• Camp 2 Do I belong here?
• At work, do my opinions seem to count
• Does the mission/purpose of my company make me
  feel my job is important?
• Are my co-workers committed to doing quality
  work?
• Do I have a best friend at work?
• Camp 3 How can we all grow?
• In the last six months, has someone at work
  talked to me about my progress?
• This last year, have I had opportunities at work
  to learn and grow?

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Great managers focus on Base Camp and Camp 1

• 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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Workplace Challenge The Big Picture
Execution thru People
Execution thru People
Strategy Goals
Processes Systems
Identifying behaviors we want people to engage
in
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ENVIRONMENTAL ?ORGANIZATIONAL FRAMEWORK
PERCEIVED TASK ENVIRONMENT
FIRM PERFORMANCE
STRATEGY
STRUCTURE
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MEA ENVIRONMENTAL SEGMENTS

• POLITICAL
• Special Interest Groups
• Regulatory

• SOCIAL
• Demographics
• Life-styles
• Values

• TECHNOLOGICAL
• Pacing
• Key
• Base

• ECONOMIC
• Cyclical
• Structural

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MACROENVIRONMENTAL ANALYSIS (MEA)
Competition
Natural Environment
Public Image
3
Customers
Regulatory (Government / Courts)
Suppliers
Special Interest Groups
Labor
Technology
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ENVIRONMENTAL ASSESSMENT AND UNCERTAINTY