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International Leadership &
Management
IBMS
Year 2Term 6
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Chapter 19 (Mullins):
Organization Development
(Culture & Change)
Introduction:Organization Development is
concerned with improving theperformance of the organization and
its ability to change if necessary.
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Good performance depends on:
Developing the right organizational
culture
Correct use of change management
strategies
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1. Organizational culture
How things are done around here
1. Handys model: 4 types
Power culture
- small business
- central power figure
- e.g. family business
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Role Culture
- Large, bureaucratic, hierarchy
- procedures, rules and roles are central- e.g. police, MNC, civil service
Task culture
- matrix, adhocracy- power spread widely
- expert knowledge needed in different areas
- different tasks & projects are central- e.g. film industry (adhocracy),
pharmaceutical industry (3D matrix)
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Person culture
- individuals are central
- much autonomy, expertise- e.g. University, law firm, consultancy
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2. Deal & Kennedy
Risk
High LowFeedba
ck(ondecision
making,action
taken)
fa
st
slow
Tough-guy(e.g. police, surgeons)
Work-hard/play-hard
(e.g. mass consumerproducts: McDonalds,
Unilever
Bet-your-company(e.g. oil companies,
investment companies)
Process(e.g. civil service,
insurance companies)
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3. Importance of organizational culture
Performance dependant on right
organizational culture
- Must be developed, managed and
changed if necessary
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- HRM strategies:
1. Recruitment & selection: right fit
2. Induction: - learn culture quickly
- companies values & mission
- symbols, rituals & ceremonies
3. Training: e.g. team building,
co-operation
4. Rewards: demonstrate desired
behavior, e.g. innovation
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4. Organizational culture / Internationalculture
Companies need to take both into account
e.g.: McDonalds / US culture
Transferable to other countries?
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2. Organisational changeI) Resistance to change
Individual:- selective perception; bias
- loss security/habit
- economic reasons
- fear of unknown- loss of power/promotion possibilities
Group/organizational:- organizational culture
- lack of resources
- contracts/agreements already made
- threats to power (TM)
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II)Change Management Strategies
1. Shared commitment
2. Information about the change
3. Participative management style
4. Participation (e.g. quality circles)
5. HRM strategies
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Some examples of HR strategies: HR planning: - too few/too many?
- which strategy?
Recruitment & selection: recruit to support
the change
Training: facilitate the change
Performance assessment & rewards:
incentives for change
Employee relations: alternatives forredundancy
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Conclusion:
Organizations need to continually adapt
and develop.
Management must be able and willing
to make changes.
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Chapter 20: (Mullins)
Organisational Performance &
Effectiveness
Introduction:What makes an organisation perform
better?
What research/models can be used?
What role is played by leadership and
management?
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1. Research and models.
1. Peters and Waterman study, 1982.
62 successful companies, 8 characteristics: Bias for action
Close to customer
Autonomy & entrepreneurship
Productivity through people
Hands on, value driven
Stick to what you know best
Simple structure
Simultaneous loose-tight paradox
C iti i l t l f l
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Critic: companies later less successful
Relevance today
2. The learning Organisation
A culture of continuous learning.
4 characteristics (Garrett)
The organisation:
Values learning
Encourages people at all levels to learnfrom their work
Systems to catch information and move it towhere required
Able to transform itself continuously
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3. Total Quality Management (TQM)
An organisation committed to total
customer satisfaction through a continuousprocess of improvement and thecontribution and involvement of people.
Deming Japan
Kaizan: gradual continuous improvement in
all areas
Quality Circles
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Conditions for success
Commitment TM
Monetary rewards
4. Rummler and Brache
3 levels of performance:
Organisational level (strategies, structure, resources)
Process level (work flow)
Job/performer level (responsibilities, rewards, training)
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- Performance should be measured on all
3 levels
- Overall performance depends on howwell these 3 levels are managed
5. The EFQM Excellence Model
- Most widely used in Europe
- Based on previous TQM models
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The model helps organisations to involve allpeople in the organisation to continuously
improve their processes and measure results. innovation & learning enablers results
5 enablers:
Leadership
People
Policy & Strategy
Partnerships &Resources
Processes
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4 result areas:
People results
Customer results Society results
Key Performance results
2. Assessing Organisational Performance.
1. Benchmarking
- Use a successful company as benchmark- Ongoing process; ST and LT goals
- E.g. instrument is the Excellence Model.
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2. Gap Analysis.
Goals of the ActualOrganisation Performance
Gap Analysis
- Where are the gaps? What can be done
ST and LT?
- E.g. shortage of managers
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3. The importance of ManagementDevelopment (MD).
- Changes in the environment, technology,international competition
- Trend towards more employee
involvementMD requires:
Managers develop technical, social and
conceptual skills It needs to be continuous
Balance theory and practice
On-the-job and off the job training
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4. Conclusion
- Many models, ideas and theories on howto improve leadership and managementand hence performance of the
organisation.- Do not always work. Must be seen as
inspiration rather than solutions
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Chapter 4: The international
dimension of HRM
Introduction:
Globalism consequences for HRM?
What are the implications of cultural diversity?
How can an organization improve its
international communication & coordination?
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1. Cultural diversity
a) Hofstede: Cultural diversity along 5dimensions:
- Power distance
- Uncertainty avoidance
- Individualism
- Masculinity
- ST/LT orientation
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b) Hofstede:
- Later study (page 81)- Cultural diversity
- 4 clusters based on 2 dimensions
1 Pyramid of2 Well oiled 3 4
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1. Pyramid ofpeople
2. Well oiledmachine
3.Villagemarket
4.The family
Powerdistance
High Low Low High
Uncertainty
avoidance
High High Low Low
Character-istics
Hierarchy,Clear orders
Rules,Regulations
Ad-hocdecisions,
Human
relations
The boss,central fatherfigure
Example France,Argentina,
Italy, Japan
Germany,Switzerland
NetherlandsUSA
India,Indonesia
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c) Strategic implications of cultural diversity(looking at both Hofstede studies)
Centralization of decision making:
Pyramid Village
(centralized) (decentralized) Rewards:
Individualistic Collective
(individual rewards) (group rewards)
Risks:
Uncertainty avoidance varies per culture
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Formality
Pyramid & Well oiled Village
(formal) (informal) Organizational loyalty
Japan US & Europe
(Collective, life-long (Individual responsible
employment ) for own career)
ST LT orientation
China US
- Investment - Quick profit
- LT goals - ST goals
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2. International CommunicationChallenges:
a) Perceptual errors (see earlier lecture)
e.g. - Not enough /irrelevant information
- Stereotypes- Frame of reference (formed by
the group we identify with)
Need for care; awareness of our
perceptions; training needed
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b) Language
- Misunderstandings- Need for language training
b) Corporate culture- If different misunderstandings
- Needs to be integrated and coordinated
well, globally
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3. International coordination
- Organizations need to act locally,
however remain integrated/coordinated
a) Coordination mechanisms
- vary culturally
Japanese centralization: HQ makesall major decisions.
American formalization: formal
control systems, reporting back
European socialization: well trained
experts (ethnocentric staffing)
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b) Other coordination mechanics
I) Reinforce corporate culture
Shared believes, purpose (missionstatement)
Rituals (meetings, ceremonies,
dress down Friday) Symbols (logo, house-style,
slogans)
Heroes (company magazine)
Ambassadors (senior managers
travel around)
II) Standards and norms
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II) Standards and norms
Throughout companye.g. - code of conduct
- ISO-norm; quality certificate
- expats; standard training
III) Standard systems
IV) Concentration of expertise
Conclusion:
Globalism: - consequences for HRM- requires managers good training- extra attention to communication& coordination
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Chapter 30: Ethics & HRM
Introduction:
What do we mean by ethics and CSR?
How do others effect our ethical behavior?
The role of HRM
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1. Ethics and CSR
Ethical dilemmas
CSR: - To what extent do companies feelresponsible?
- What are they doing about it?
2. Effect of others on our ethical behavior
- Asch
- Milgram
3. Ethics across borders
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4. Ethical trends
I) Is quality of work life decreasing?
- companies offer less job security
- emphasis on managing own career
- younger generations?
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II) Increasing use of IT; increasing alienation, stress?
- managers; e-mail communication
- labor saving technology
- working at home: - loneliness- vague work/home boundaries
- physical stress:- RSI
- e-mail management needed
5 Th R l f HRM
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5. The Role of HRM
- management remains personal- managers :
- respect individual and culturalneeds
- LT vision
- International orientation
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Chapter 22: Health, safety & welfare
Introduction:
The importance of Health, safety & welfare
Safety training H, S & W abroad
Welfare = collective term for Health & Safety
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Welfare ( health + safety):
Physical aspects + Emotional aspects
e.g. e.g.
- safe environment - counseling facilities- working hours - improve communication
- holidays - improve leadership style
- social needs (Mayo)
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1: The importance in businesse.g.
unsafe working conditions overworked employees
inappropriate leadership style
poor communication
2: Laws
many; to protect employee
E.g. working time
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3: Safety training
1) 3 main purposes
understand safety risks at work
know safety rules and regulations
persuaded to comply to safety rules
2) When should safety training be given?
Induction period
On-the-job
Refresher courses
- bad habits
- fire-drills
4 H lth & f t b d
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4: Health & safety abroad
Laws relating to health & safety
- different?
- upheld?
Adequate medical facilities available?
- hospital?
Counseling facilities available? Communication with HQ?
Extra health & safety training needed?
e.g. working in tropical climate; risk of Malaria
Ch t 24 E l t it &
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Chapter 24: Equal opportunity &
diversity
Introduction:
Equal opportunities: providing equal
opportunities for everyone
Managing diversity: managing an increasingly
diverse workforce
How can these be encouraged/implemented?What problems need to be overcome?
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1.The problem is complex and deeply rooted
e.g. Equal pay for men & women:
main barriers are perceptual (week 1)
e.g. a) length or service men: lesscareer breaks
b) previous salary men: higher,
therefore better
c) bias of managers: men better
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2. Approaches to equality
a) Equal opportunities approach:
Attempt to give everyone an equal chance
to get job/promotion
Emphasis: groups & minimizing differences
Focus: recruitment, HR department,
legislationAim: decrease discrimination
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Problems:
maybe not all minority groups protected
not always lead to in discrimination other employees feel disadvantaged (reverse
discrimination)
b) Managing diversity approach
Attempts to opportunities for all
Emphasis: individuals; seeing differences as an
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Emphasis: individuals; seeing differences as an
advantage
Focus: managing individuals/all managers
Aim: individuals potential/performance
organizations results
Problems: progress slow
training managers?
focus on employees in organization, notenough on attracting new employees
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Conclusion: Both approaches needed
3. Model for introducing managing diversity
(Ross & Schneider)
6 steps:
1. Assess current situation
2. Set aims
3. Spread ownership
4. Policy development
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5. Manage transition- training:
a) management: understand
different cultures
b) minority groups: understand
organizational culture
6. Manage programme
- who is responsible?
- evaluate results
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Chapter 31: Work-life balance
Introduction:
Why is there a need for work-life balance?
How can it be achieved?
What are the benefits?
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1. The need for work-life balance
Work Free time
balance?
women in workforce
older employees
24/7
Faster pace of work
Younger generations
2. Work-life balance in practice
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e.g. - work from home- unpaid sabbatical
- unpaid leave
- part-time
- job-sharing
- flexibility in hours worked> flexitime> compressed hours> annual hours
2. Benefits
- absenteeism
- motivation, performance
4 P bl
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4. Problems
Financial/technical limitations
e.g. video conferencing Career development limitations
Options only for women
Full time part time (workload)
Attitude managers
e.g. - part time workers
- difficult to manage- working at home?
Availability of work-life balance options?
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5. Managers need training
- managing at a distance- maybe require different/higher levelcompetencies
e.g. - communicating at distance- maintaining control & coordination
- empowerment/delegation tasks
- performance management not based on time at work, but on
results
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Chapter 19: Career development
Introduction:
How & why are careers developed?
How can individuals manage theircareer development?
How can the organization supportcareer development?
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1. How and why are careers changing?- environment less stable, less
predictable
- organizations need more flexibility
- effects the psychological contract:
Employees Organizations
expectations expectations
of organization of individual
Psychological contract
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- Psychological contract has changed:
Previously (+ 20 years ago):
Commitment & chance develop career
Loyalty & job security
Nowadays:
Commitment & chance develop career
Individuals manage own career & less job
security
2 I di id l t
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2. Individual career management
What strategies can be used?
(Gould & Penley)
Create opportunities
Self presentation Seek career guidance
Extended work involvement
Build up & use network
Learn to play golf (relationship boss)
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3. Organizational support for career
development
Make career moves clear
Path traditional
Grid more flexible
Roles most flexible
- The more flexible the better
- Encourage & reward lateral moves (i.e.development of different competencies)
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Fast track programmes
Management support
Career counseling
Career centre / mobility centre
Assessment centre
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