B713

Contingency theory

Recognition of differences

Organizations need different perspectives

Balance of integration and differenciation

Power, Authority & Influence ( B1S6)

Strategic view

Value Chain(Porter)

Strategy as Rational Planning

Emergent Strategy

UpwardSynthesising information

Championing

DownwardImplementing deliberate strategy

Facilitating adaptability

Resources basedResouce-based, B3S7, p.19

(Wernerfelt, 1984; Rumelt, 1984).

Capabilities(Grant)

Building Relationships & Capabilities

Choosing and committing to long-termcapability development

Capabilities & Network relationships

Relevance of ... to organizational objectives

Identification of new

Means of build or acquisition

Capabilities qualities that endow competitiveadvantage. Grant,1998 B3S7, p. 20

Inimitability

Durability

Relevance

Appropriability

Classes of capability (John Kay, ) B3S7, p. 21

Innovation

Architecture

Reputation System of relationships inside & outside theorganisation

Building capabilities and relationships Collis & Montgomery, 1995

Marks & Spencer's capabilities. B3S7, p. 22

Focus on firm's strengths and economic reality.Kay,1993, p. 4

Market-based

Porter's Five Forces

organisations

Stakeholders

Near (influence)

Internal (control)

Far (STEEPLE) (respond)

Demographic change

Patterns of work

Household structure

Patterns of consumption

Gender roles

Technological factors

Economic factors

Environmental factors

Legislation

Infomation

Employees

Shareholders

Pressure groups

Customers

Political factors

SocialTechnologicalEconomicalEnvionmentatPoliticalLegal

Environmental scanning Undirected viewingConditional viewing

Informal searchFormal searchB1,S11

B1,S3Morgan,1988, 'orgs must be opportunity

searching

Possible influencing strategies, B1S6,p 95

Position

Push

Pull

Persuasion

Preparatory

Preventative

pyramid of purposePyramid of purposes & resources B1s7, p.38

mission (why)

aim-goals (what)

objectives (how)

targets (how)

ProfitabilityGrowth

Shareholder valueCustomer satisfaction

B3S7

Vision,mission,valuesGoals & aims

ObjectivesTarget day-to-day tasks

Forms of capitalism, B1P1, p.14

Anglo-AmericanHire and fire

Poorly paid

German-ScandinavianMitbestimung

Unions

Japanese

Trust

Continuity

Reputation

Co-operation in economic relationships

Approaches to strategy

Organisation Control Systems, p.25(perspectives)

Interpersonal, e.g. supervision

Administrative

Technical

Diagram Sector à OrganisationsGoalsSize.jpg

Generic Value Chain (Porter 1985) B3S7, p. 24

Identify cost of each activity

Understand drivers of cost for each activity

Monitor processes of competitors(benchmarking)

Understand linkages in chain & horizontalstrategy opportunities

Environmental volatility B1S3

Hard to influence

Megamarketing (Kotler,1986)Lobbying

PR

Environmental Volatility, perspectives B1Congingency Theory

Conginency theory requirse the recognisedifferences. P. 22

Contingent nature of managerial decissionmaking is evident as often there is no clear

“best” solution to a problem, and the cost andtime of information search and analysis is

disproportionate to the issue being considered.(Paton, 1995)

Comprensive approaches to strategies andmarket planning is only appropriate when thereis a degree of environment stability. (Gofland

and Rashead, 1997) p.19

Marketing and strategic planning may fail invery volatile environment because of the

inability to keep pace with changes. ,(Goldstein, 1994), B1P, p. 19.

Agency theory, B1S4, p. 9

Rational

Goal-seeking

Unitary

Conflict, (perspectives)

Causes of conflict, p. 28 (Dawson, )

Fear of concequences

Ideas of legitimacy

Exclusion

Taken-for-granted assumptions

Five layers of Conflict, p. 29

Misunderstandings

Differences in values

Ambition

Interpersonal differences

Feelings and emotions

Resolving Conflict, p. 30

organisational-structureInternal context B1S4 & S5

design bureaucratic

max weber (1864-1920)

Hawked(1991)"it is sound"

serviceroutine

non-routine

production

small batch

mass

continuous

flexible-management

Veritcle-differentiation

Span of controlShape of hierarchy

Degree of centralisationDegree and type of specialisation

Degree of job definitionHorizontal-differentiation

Functional structureProduct or service structure

Geographic structureHybrid structureMatrix structure

Contingency theory(Recognition of difference)

Structure

Sector

Nationality

Control system

differentiation-integration

groups

activities

co-ordintation

control

archiving differentiation structural variablesvertical

span of controlshape of hierarchy

degree of centralisationdegree and type of specialisation

degree of job definition

horizontal

functional structureproduct structure

geo structurehybrid structurematrix structure

achieving integration co-ordination

rules,programmer,procedures

remits,referrals

setting targets goals

reducing conflict

slack resources

self-contained tasks

investment in vertical ICT

creating lateral relationships

dept. liason

ditch contact between leaders

temp. task group

section integration specialists

matrix structuret

the more specialisationthe more coordination is needed

organisational-culture

Handy's 5 cultures, B1,S5

Power

Or Club, visually a web, charismatic leder.Hires the "right sort of people", extended family.

Role

Impersonality, old fashioned bureaucracy. Titlesimportant.

Task

Project, team based, people enjoy newchallenges. Viewed as a grid with power at the

knots. People mobile between teams. ITcompanies, confidence.

Person

Unlike task and power, here the individuals atput before the organisation. Think-tanks,

artists, consulting partnerships.

Local (national) cultures (Hofstede, 1980)

Power-distance

Risk-adversity

Masculinity

Individualism

"The way things are done around here",Deal & Kennedy, B1,S5

Metaphors

Values,ideologies,assumptions

Stories,jargon,dress,ritual

symbols

High-profile

mission statement

logo

Dress code

Low-profile

Practices

Communications

Common language (jargon)

Physical forms

Risk-feedback model of organisational cultureDeal & Kennedy, 1982, B1,S5,page 62

Feedback-quick, risk-highTough guy-macho

Often associated with financial rewards.Managers must make fast decisions and take

responsibility for the consequences.

Feedback-slow, risk-highBet-your-company

Feedback-quick, risk-lowWork hard-play hard

Feedback-slow, risk-lowProcess culture

Organisational contingencies (Handy or

Deal & Kennedy

Macho culture HR,qf

Bet-your-company, HR,sf

Work hard/play hard lr,qf

Process culture lr,sf

National culture (hofstede)

Power distance

Uncertainty avoidance

Individualism

Masculinity

Manager

Power

Derive from difference

Based belief

Two-sided

Contextual

Sources

InformationExpertiseSocial connectionsPersonal characteristicsControl of ResourcesPosition(French & Raven)

Capacity to influence others

Influence Dependent on relationship

Ability to effect another person or group.Authority

Power given formally to person or group

Leadership (B1,S6)

Leadership as a social process, B3S19

Transactional Leaders appeal to others' self-interest. Seriesof relational exchanges.

Managing meaning Story of the non-map, p.45 (Weick,1995)

B1S6, p.114

Strategic issues

People issues

Task issues

Core issues

Transformational Leader as dramatist(Manfred Kets de Vries, 1999)

Tranformational leader inspires others to domore than expected. Bass, Waldman, Avolio &

Bebb, 1987. B3S19,p. 47

Transformational leadership (James MacGregorBurns (1978))B1S6, B3S9

Relationships

Political Skills

As a process (Hoskings, 1997) Issues

Strategic

Task

Ensuring that the organisation's results areachieved.

People

Binding and maintaining the socialrelationships.

Maintaining moral, cohesion & commitment.

Leaders, are and seen to be influential inimportant matters.

Influencing people in ways that are more orless acceptable to them.

Abilities & skillsCommunications For more see, B2S7

Charisma Risks & dangersLeaders become seduced by their followers

The owl who was god...

Competencies of leaders, Warren Bennis, 1998 Management of

Attention, through focus of commitment

Meaning, make dreams apparent.

Trust, reliability

Self, knowing own skills

Theories of leadership

Trait theories, B1S6,p109 Personality

Style Theories B1S6,p110

varied on two dimensionsPeople-orientated

Task-orientated

Best known of the style theories derived fromthis work is the management grid of Blake and

Mouton (1964).

Task 1=low concern and 9 = high concern

Persons 1=low concern and 9 = high concern

Contingency theory B1S6,p.111

Dependson

leader-member relationships whether the leader is liked and trusted bygroup members

the leader's position power - the extent to which the leader can rewardand punish subordinates (through pay,

dismissals and so on). task structure

- the degree to which the tasks to beperformed are clearly defined and well

structured Fiedler found that

task-orientated leaders perform better insituations that are either very favourable or

very unfavourable

relationship-orientated leaders perform better insituations of moderate favourableness

thus the performance of the leader depends asmuch on the situation as on the style of the

leader

Main leadership styles: task-orientated andrelationship- or people-orientated

(Fiedler, 1967)

Power, Authority &Influance, B1S6

Influence Strategies

PositionPush (could look like bullying)

Pull (Reward)Persuasion (appeal to reason)

Preparatory (networking)Preventative (stopping questions)

Effecting what another person or group does orthinks

AuthorityPower given formally to a person or group

Power

DifferenceStatus

Access to resources

Beliefs in holding & likelihood of using (B1S1)Resources

Sanctions

Never one-sided

Is always contextual

Sources (French & Raven,1960)

Information

Expertise

Control of resources

Social connectionsLuggage, 1988,

Found that the most promoted managers werethose that networked.

Personal characteristics

Position

Through control over information

Personal characteristics

Etzioni on powerEtzioni, 1975 B1S6, p93

Physical

Possible application of physical force.

MaterialRemunerative or utilitarian power

Rests on the manipulation of physicalresources.

Symbolic

Normative or identitive power.Manipulation of pretige

Contingent on favorableness.

Task-oriented

Relationship-oriented

Leader-member relationship

Task structure

Leader's power position

(B1S6,111)Fiedler, 1967

9 distinct factors associated with leadership:

(1) Genuine concern for others.(2) Political sensitivity and skills.(3) Decisiveness, determination, self-confidence.(4) Integrity, trustworthy, honest and open.(5) Empowers, develops potential.(6) Inspirational networker and promoter.(7) Accessible, approachable.(8) Clarifies boundaries, involves others indecisions.(9) Encourages critical and strategic thinking.(Alimo-Metcalfe and Alban-Metcalfe, 2001, p.12)

Traditional approaches to understandingleadership.

TraitPersonality & personal qualities, early 20thcentury. Leaders are born not created.

Style

Concern for task

Concern for people

Management Grid(Blake & Mouton, 1964)

B1SS6.p.110Axes: concern for, production and people

Leadership is determined by behaviour notpersonal characteristics.

Contingency (Fiedler,1967) Favorableness (Fiedler)

Leader-member relationship (liked or dislikedby those lead)

Task-structure (degree to which activities areclear and structured)

Leaders position power, (how much leader canreward or punish)Like Blake & Mouton has two styles, but these

are contingent on the situation.

Leadership terms, B1S6

Authorityis that power which is formally g iven toan individual or a g roup because of

the position or role they occupy within anorganisation. For example, managers will

have a certain authority over theirgroups or depar t ments. It is thus asubset of power as def ined above.

Management was traditionally thought of interms of the exercise of authority, that is,

power derived from role.

Power(B1S6, p87)

Six SourcesRaven, 1960

Information

Expertise

Position

Control of resources

Social connections

Personal characteristics

Sources of org. PowerEtzioni (1975) p. 94

Coercive power

Remunerative or utilitarian power

Normative or identitive power

Derives from manipulation of symbols

is sometimes defined as the capacity ofa person or a group to influence other

people or groups. For example, amanager may decide to reorganise the waytasks are allocated within an organisation,which will have a major impact on how

people work

Depends on relationships, difference, belief,never one-sided.

Influence

occurs when a person or a group affectswhat another person or group does

and/or thinks. For example, if a new seniormanager a dopts a different dress code

from h is/her predecessor , others in theorganisation m a y start t o d ress

differently too.

B3S19A leader is best When people barely know he

exists, Not so good when people obey andacclaim him, Worse when they despise him,

But of a good leader, who talks little, When hiswork is done, his aim fulfilled, They will say:

We did it ourselves.(Lao-tzu, 600 BC)

B1S6

Decision Making

Structured

Political

Disorder

Ritual

Organizational Learning

Bounded rationality

Senge's 5 disciplines

Personal mastery

Metal models

Building shared vision

Team learning

Systems thinking

Page 28

Change of perspectives