Management Dynamics/Organisational Studies Revision Notes
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Transcript of Management Dynamics/Organisational Studies Revision Notes
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8/8/2019 Management Dynamics/Organisational Studies Revision Notes
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Organisational Studies
Stakeholders
Groups that are directly affected by and affect an orgs decisions and actions
Can be internal and external
Internal employers, management, board of directors
External customers, social/political groups, competitors, trade & industry assoc, govt, media,suppliers, communities, shareholders, unions.
Why are they important?
Bus. Can predict environment changes, leads to successful innovations, greater trust b/w org. and
int & ext stakeholders, and flexibility.
Higher performing orgs are those that take all stakeholders into consid.
Mgmt of stakeholder rels:
1. Identify s/holders2. Determine the concerns/issues of each3. Decide how critical eacg s/holder is on the decision making/actions of org4. Determine the orgs approach to mgmt of the s/holders
Social ResponsibilityClassical & Social-Eco
Classical purely economical
Belief only soc resp is to maximise profits
Milton Friedman big supporter of view
Sharehol most imp. s/holder & the only one cons when making decisions
1 single concern of bus. financial return
MF: considering social good of org is an extra cost to the bus & should be passed to custs rather
absorbed by sharehols & therefore dec dividends
Socio-Eco looks beyond pure economics
Bus should protect and improve social welfare
Bus are not ind. have resp to society & not just s/holders
Financial gain long term obj not short term (classical) short term: accept social resp & costs
assoc. long term social credibility inc, growth due to cust moving towards triple bottom linebuss eco, social & env bottom lines.
Social Resp Line
Less More
Stage 1 Stage 2 Stage 3 Stage 4
Shareholders Employees Spec. community/ Broader society
stakeholders in bus.
environment
Social Oblig & Social Responsiveness
Social Obligligation oblig of a bus to meet its eco and legal resps.
Org does only what it is oblig to do & feels only social duty is it shareholders (i.e. classical view)
Social responsiveness firm adapting to changing societal conditions, guided by changes in social
norms
Social responsible goes beyond requirements by law or economics to pursue long terms goals
beneficial to society, add an ethical dimension to decision making
Social screening applying social criteria to investment decisions
Little evidence that a comps social actions affect long term eco perf, mgmt should incorportate
social/ethical dimensions into planning, organisation, leading & controlling. By acting socially
irresp it creates signif bus risks
Ecological sustainable mgmt recog of link b/w orgs dec/activities on natural env, mgmt need to
be aware of env issues in order to make informed bus decs
Serious env probs pollution, indust toxic waste, resource depletion, global warming
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Green Approaches
Low High
Legal App Market App S/holder App Activist App
Light Green Dark Green
Legal doing what is req by law, little env sensibility, obey laws, rules & regs but no legal chall(social oblig approach)
Market respond to env pref of custs, whatever env demands customers make the org will
provide (social responsiveness)
Stakeholder works to meet env demands of stakeholders, e.g. employees, supps or community
by greener approaches to supply chain, design & packaging (as above)
Acitivist respect & works to preserve env resources, highest deg of env sensitivity, overhauling
ops & functions in order to be as sustainably as poss (social responsibility)
Values based mgmt mgmt approach mngrs est & uphold orgs shared values
Four purps
- serve as a guide to mngr decisions & actions- shaping employee behaviour & comm orgs expectations to members- Influence marketing efforts (boasting rights thru adv)- Building team spirit in orgs
Ethics rules & principles that define right & wrong conduct
Facs affecting emp ethics: (3 levs, 6 stages)
- stage of moral develLevels:
1. Preconventional choice dep on personal conseq e.g. phys punish, reward orexchange.
a. Obedience and punishment avoidenceb. Selt interest whats in it for me to obey
2. Conventional moral vals dep on expected standards & living to expectationsa. Interpersonal & conformity social norms, good boy/girl attitudeb. Authority & social order law/order morality (most adults here)
3. Principled clear eff to define mor prins, regardless of auth of the groups theybelong to or soc in gen.
a. Social contractb. Universal ethical princs principled conscience
Stages: People move up ladder sequentially but can stop at any stage.
- individual charactvalues basic convictions of what is right and wrong
two personality varbs:
1. Ego strength measure strength of a persons convictions, malleable, can beswayed, persuaded to change
2. Locus of Control reflects degree person believes they control own fate.Internal locus of control: control their own destinies (more person resp for
actions). External: what happens is due to luck or chance (less personal resp)
- structural variabsOrg struc design infl either a guidance, or ambiguity/uncertainty. Job descs, codes of
cond/ethics, use of goals, perf apprais & reward proceds promote consist behav.- org culture
culture likely to infl high eth stands risk tolerance, control & conflic tolerance, emps
encour to be aggress & innovative, aware of conseq.
- issue intensity6 factors determine how imp an ethical issue is:
1. the amt of people who will be harmed by dec2. level of agreement that the action is wrong3. the liklihood dec will cause harm4. how immediate the conseqs will be felt, imposed
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5. proximity to the victim/s6. concetration of affect on victim/s
Improv eth behav:
- employee selectionthru interviews, tests, b/ground checks opp to learn about lvl of moral dev, personal
vals, ego stregth & locus of control
- codes of eths & dec rulesCOE formal stmt of orgs primary vals & eth rules expected to be followed decambiguity, specific enuf to explain expectations but still allow for freedom of judgement.
- top mgmt leadership/conducteth bus. req commitment from top mgmt lead my example, set cultural tone of comp.
- goals & appraisal imp to set realist goals & targets otherwise may lead to uneth behavin order to meet unrealist goals & avoid a neg appraisal
- training seminars, workshops, programs to encourage ethic behav. Inc intl ethics forglobal trading.
- social audits indep social audits of cos eval dec making & mgmt practices, codes of ethsetc.
- protective mechanism provide mech that protect emp who face ethic dilemmas & cando the right thing without fear of reprimand
External Environment factors and forces outside the org that affect the orgs perfTwo components: specific env & general env
Specific Environment external forces that have a direct impact on the mngrs dec & actions,
directly relevant to achev of orgs goal. E.g. customers, suppliers, competitors & pressure groups
General Env broad external conditions that affect the org.
e.g. economic, legal/political, sociocultural, demographic, technological & global conditions.
- Eco interest rates, inflatio, disposable incomes, share market fluct, business cycles.- Legal/political federal, state & local governments through regulations & policies e.g.
TPA, env protection laws, anti-disc laws, industrial relation reforms & global politics
trade agreements, relations.
- Sociocultural mngrs & orgs adapt practices to changing expectations of the society theyoperate in values, customs & tastes always changing. Esp important when trading in
foreign countries- Demographic trends: gender, age, edu lvls, geo, imcome, family trends (ABS),
generational patterns & changes
- Technological radically changes the funda ways orgs structured & operate.- Global conditions globalisation, borders meaningless, inc foreign trade, TNCs, inc
competition.
Env uncertainty degree of change & complexity in orgs envDegree of change freq change dynamic env, minimal change stable env
Deg of complex # components in an env & the extent of knowledge of them (simple/complex)
Globalisation - process regional eco, societies, and cultures become integrated through a global
network of commun, transp, and trade, integration of national econ into the intl economy thru
trade, foreign direct investment, capital flows, migration, and the spread of techn. Usually driven
by eco, techn, sociocultural, political, and biological factors.
Parochialism viewing the world thru only your persp, unable to recog diffs b/w ppl
3 global attitudes:
- ethnocentric: best work approaches are those of the home country- polycentric: mngrs in the host country know the best work prac for the org- geocentric: world oriented view, use the best approaches & best ppl from all over world
Leaders & Leadership
Leaders person who influences others & has mngr auth.
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Leadership process of influ others in order to achieve goals
Theories of l/ship:
- trait theories: theories that tried to isolate characteristics that isolated leaders fromnonleaders
research 1920/30 focused on traits of leaders, 7 traits associated with the process: drive,
desire to lead, honesty & integ, self-conf, intell, relevant knowledge, extraversion
- behavioural theories - 1940s-60 research into behav of effective leaders. 4 main studies:o Uni Iowa
Autocratic centralises auth, dictates work meths, unilateral dec, limitsemp partic
Democratic involves emps in dec making, enc partic, utilised feedback Laissez-fare generally gives team complete freedom to do tasks at will
o Ohio State Initiating Struc extent leader likely to define & struc their role & roles
of team membs
Consideration extent leader has job relations w/ mutual trust, respectfor ideas & feelings in team
High-high leader high struc & high consido Uni of Michigan
Employee orient emph on interpers rels, interest in needs & indivdiffs among team membs
Production orient emph on the task or its tech aspects, main focus wasaccomp task rather than forming rels.
- Contingency theories define leader style & situation to answer if/then contingencieso Fiedler Model: effective group perf deps on match b/w leaders style of
interaction with the situation if it allowed leader to control/influ. Devel LPC
(least pref co-work) high score = responder pref relat orient l/ship style, low
score = resp pref task orient l/ship3 conting dimen:
Leader/memb relat deg of conf, trust & respect for leader Task struc degree deleg was formalised Position power degree influ leader over power activities e.g. hiring,
firing, discipline.
Contemp views on l/ship:
- Transactional leaders: guide by using social exchanges/transaction motivate to workto goals by exchanging rewards for productivity.
- Transformational leaders: stimulate & inspire followers to achieve extraordinaryoutcomes by challenging and exciting.
- Charismatic leaders: enthus, self conf leader, personality & actions influ ppl to behave inspec ways. They have: vision, articulation of vision, risk taking, sensitive to their env,
extraord behav
- Visionary leaders: ability to artic realistic, cred, attractive vision that improves upon thepresent
Team leaders are:
- liasiors with external constituency e.g. upper mgmt, cust, supps, other teams. They repthe team to other ppl/teams.
- Trouble shooters: team leader often asked for assist, resolve probs in the team, rarelytech.
- Conflict mngrs help process the arg, identify the source & offer resol options- Coaches clarify expects, roles, teach, offer supp, keep perf up.