Module 1 The “New” Organization: Taking Action in an Era of Organizational Transformation PowerPoint Presentation by Charlie Cook Copyright © 2005 South-Western.

1 Module 1 The “New” Organization: Taking Action in an Er...

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2 “Old” Model of the OrganizationBureaucracy—classic model of formal organization identified by Weber; features include: Specialized individual positions and jobs A formal hierarchy with a clear line of authority (“chain of command”) Formal rules and standard operating procedures Set boundaries for each department and subunit, and clear boundaries between the organization itself and its environment Standardized training and training requirements, career paths, and reward systems, based on the development of expertise Class Notes: Changing Organizational Models Copyright © 2005 South-Western. All rights reserved.

3 “Old” Model of the Organization (cont’d)Strengths of the classic model: Predictability and reliability Impartiality Expertise Clear lines of control Class Notes: Changing Organizational Models Copyright © 2005 South-Western. All rights reserved.

4 “New” Model of the OrganizationKey features of the “new” model: Networked Flat Flexible Diverse Global Class Notes: Changing Organizational Models Copyright © 2005 South-Western. All rights reserved.

5 Key Features of the “New” ModelImportance of networks results from: Availability of new telecommunications and information technologies to connect people and organization units Competitive need for rapid response to customer needs, changing environments, demands for innovation Need for increasingly complex and diverse resources to develop and deliver value to customers New approach of dealing with volatility by linking source of volatility with part of organization most affected by it Copyright © 2005 South-Western. All rights reserved.

6 Key Features of the “New” Model (cont’d)Flattening of the hierarchy necessary because: Organizations must respond more rapidly and flexibly to changes in markets and technology Changes in information technology remove the need for layers of middle managers whose main tasks were organizing and transmitting information Organizations face intense pressure to cut costs Copyright © 2005 South-Western. All rights reserved.

7 Key Features of the “New” Model (cont’d)Need for flexibility driven by: Intensifying competition Increasingly diverse labor force Increasingly complex and unpredictable external environment Copyright © 2005 South-Western. All rights reserved.

8 Key Features of the “New” Model (cont’d)Diversity is necessary because of: Growing diversity of the workforce in demographic terms A greater need for innovation and creative approaches to solving problems Growing volatility in the business environment “Requisite variety”—the diversity that matches the diversity of key elements of the environment Copyright © 2005 South-Western. All rights reserved.

9 Key Features of the “New” Model (cont’d)Key factors driving globalization: Greatly reduced costs of international transportation and communications Growing equalization across markets of “advanced factor endowments” Globalization of markets Class Notes: Changing Organizational Models Copyright © 2005 South-Western. All rights reserved.

10 Key Features of the “New” Model (cont’d)Key factors driving globalization (cont’d): Continuing differences in cost structures across countries Cross-border learning that expands capabilities of firms Pressures from international nongovernmental organizations (NGOs) Class Notes: Changing Organizational Models Copyright © 2005 South-Western. All rights reserved.

11 Summary of Features of Old and New Models of OrganizationOld Model New Model Individual position/job as basic unit of Team as a basic unit organization Relations with environment handled by Densely networked with environment specialist boundary-spanners Vertical flows of information Horizontal and vertical flows of information Decisions come down, information flows up Decisions made where information resides Tall (many layers of management) Flat (few layers of management) Emphasis on structures Emphasis on processes Emphasis on rules and standard Emphasis on results and outcomes procedures Fixed hours Flexible workday, part-time workers Class Notes: Changing Organizational Models Copyright © 2005 South-Western. All rights reserved. Figure 1.1a

12 Summary of Features of Old and New Models of Organization (cont’d)Old Model New Model Career paths upward, linear Career paths lateral, flexible Standardized evaluation and Customized evaluation and reward systems reward systems Single strong culture with strong Diversity viewpoints and behaviors expectations of homogeneous behavior Ethnocentric mindset International/global mindset Specialist international managers Boundary-crossers at all levels Local value chains Value chains crossing borders Environment defined in terms of Environment seen as global country of location Class Notes: Changing Organizational Models Copyright © 2005 South-Western. All rights reserved. Figure 1.1b

14 Search for the Organization of TomorrowSources/Authorities Number of Quotes Managers: Lawrence Bossidy, CEO, Allied Signal 5 H. James Maxmin, CEO, Laura Ashley 1 Philip Jarrosiak, Manager/HRM, GE 2 Herman Simon, plant manager, Gaines 1 William Buehler, Senior VP, Xerox 1 Richard Palermo, VP, Xerox 1 Don Fletcher, VP, Hallmark 1 Paul Allaire, CEO, Xerox 1 Consultants: David Nadler, Delta Consulting 2 Doug Smith, McKinsey 5 Frank Ostroff 3 Mike Hammer, CSC Index 2 James Champy, CSC Index 2 Class Notes: Reading the Business Press Copyright © 2005 South-Western. All rights reserved. Figure 1.3a

15 The Organization of Tomorrow (cont’d)Sources/Authorities Number of Quotes Academics/Researchers: Peter Drucker 1 Marvin Weisbord 1 Shoshanna Zuboff 1 Quinn Mills 1 Robert Reich 1 Workers: Robert Brookhouse, Kodak “Zebra” 1 Class Notes: Reading the Business Press Copyright © 2005 South-Western. All rights reserved. Figure 1.3b

17 A New View of Organization (cont’d)A new view of organization by McKinsey consultants Frank Ostroff and Doug Smith is meant to help clients hung up by the old template. Says Ostroff: “They needed a clear architecture” to show how a functional pyramid (previous slide) could become a process-oriented, horizontal organization. Class Notes: The Search for the Organization of Tomorrow Copyright © 2005 South-Western. All rights reserved. Figure 1.4b

18 McKinsey’s Plan Organize primarily around process, not taskFlatten hierarchy by minimizing subdivision of processes Give senior leaders charge of processes and process performance Link performance objectives and evaluation of all activities to customer satisfaction Make teams, not individuals, the focus of organization performance and design Combine managerial and non-managerial activities Each employee should develop several competencies Inform and train on a just-in-time, need-to-perform basis Maximize supplier and customer contact with everyone in the organization Reward individual skill development and team performance instead of individual performance alone Class Notes: The Search for the Organization of Tomorrow Copyright © 2005 South-Western. All rights reserved.

20 Three Lenses on Organizational Analysis and ActionModule 2 Three Lenses on Organizational Analysis and Action PowerPoint Presentation by Charlie Cook Copyright © 2005 South-Western. All rights reserved.

21 Our Personal “Schemas”Schema defined A cognitive structure that represents how individuals construct their own maps of the social world How schemas lead us astray: Schemas become outdated Schemas are resistant to change Schemas become universal rules Schemas are incomplete Class Note: Introduction Copyright © 2005 South-Western. All rights reserved.

23 Choosing a View of the OrganizationThe strategic design lens How the flow of tasks and information is designed How people are sorted into roles How these roles are related How the organization can be rationally optimized to achieve its goals Class Note: Introduction Copyright © 2005 South-Western. All rights reserved.

24 Choosing a View (cont’d)The political lens How power and influence are distributed and wielded How multiple stakeholders express their different preferences and get involved in (or excluded from) decisions How conflicts can be resolved Class Note: Introduction Copyright © 2005 South-Western. All rights reserved.

25 Choosing a View (cont’d)The cultural lens How history has shaped the assumptions and meanings of different people How certain practices take on special meaningfulness and even become rituals How stories and other artifacts shape the feel of an organization Class Note: Introduction Copyright © 2005 South-Western. All rights reserved.

27 Key Elements of Organization DesignGrouping (differentiation) Drawing boundaries around clusters of tasks or activities to define jobs, departments, processes Linking (integration) Creating links across organizational boundaries Alignment Positioning elements of the organization (such as rewards and incentives) to provide access to the resources and the incentives to do the tasks assigned Class Note: The Strategic Design Lens Copyright © 2005 South-Western. All rights reserved.

28 Elements of Organization Design (cont’d)Task Basic element of organization design Smallest unit of activities that need to be performed if organization is to realize strategic goals. Tasks vary in: Complexity Level of routinization Interdependence Copyright © 2005 South-Western. All rights reserved.

29 Elements of Organization Design (cont’d)Task interdependence varies from low to high Kinds of interdependence: Pooled: interdependent tasks are undertaken at the same time Sequential: one task is completed and then handed off for the next stage Reciprocal: tasks are conducted in repeated interaction with each other Copyright © 2005 South-Western. All rights reserved.

31 Strategic Grouping Basic grouping structures:By expertise/function By output/product By market (geography or customer) Hybrid grouping structures: Matrix organization Front/back structure Class Notes: The Strategic Design Lens Copyright © 2005 South-Western. All rights reserved.

37 Strategic Linking Linking: designing formal/informal structures and processes to connect and coordinate units Linking mechanisms: Formal reporting structures that follow organization’s hierarchy Liaison roles Integrator roles Permanent and temporary cross-unit groups Information technology systems Planning processes Class Notes: The Strategic Design Lens Copyright © 2005 South-Western. All rights reserved.

38 Strategic Alignment Alignment: ensuring that units and individuals have necessary resources and motivation Alignment systems: Organization performance measurement systems Individual rewards and incentives Resource allocation Human resource development Informal systems and processes Class Notes: The Strategic Design Lens Copyright © 2005 South-Western. All rights reserved.

39 Strategic Organizational Design ProcessProcess of design involves costs: Disruption of normal flow of business Risk to long-term relationships with key customers and suppliers Stress and anxiety Reasons for organization redesign: Response to growth of organization Management succession stimulates change Required as a result of internal problems Current design no longer fits external environment Copyright © 2005 South-Western. All rights reserved.

41 Organization as Political SystemPolitics may be perceived as dark side of an organization Unwillingness to deal with political aspects of organization is a serious handicap for anyone trying to take action in an organizational setting Core concepts of the political perspective: Interests Power Class Notes: The Political Lens Copyright © 2005 South-Western. All rights reserved.

42 Organization as Political System (cont’d)First step: recognizing that interests are important Organizational behavior grounded in interests Collective interests are those shared by others in a group or category Stakeholders: groups that have a shared “stake” affected by the organization Internal stakeholders—those within an organization External stakeholders—suppliers, customers, communities, shareholders Next step: analyzing what interests are and what priority they have individually and collectively Class Notes: The Political Lens Copyright © 2005 South-Western. All rights reserved.

43 Organization as Political System (cont’d)Power: ability to influence behavior of others Sources of power: Personal characteristics Scarce and valued expertise Past performance/track record Formal position in organization Informal position in organization or social network Class Notes: The Political Lens Copyright © 2005 South-Western. All rights reserved.

44 Organization as Political System (cont’d)Influence from social network often more significant than authority from formal position Key factors in power of social networks: Size of network Number of powerful people in network Position in network Redundance vs. efficiency Acting as an information bridge in a “structural hole” in an organizational network Class Notes: The Political Lens Copyright © 2005 South-Western. All rights reserved.

46 Sources of Power Personal Characteristics Scarce and Valued ExpertiseEnergy and physical stamina Focus Sensitivity to interests of others Flexibility Ability to tolerate conflict Ability to submerge one’s ego in order to get something accomplished Scarce and Valued Expertise Track Record Formal Position in Organizational Hierarchy Informal Network Position Class Notes: The Political Lens Source: Jeffrey Pfeffer, Managing with Power: Politics and Influence in Organizations (Boston: Harvard Business School Press, 1992), 165–185. Copyright © 2005 South-Western. All rights reserved. Figure 2.9

47 Using the Political LensSuccessful political strategies for taking effective action in organizations can include: Mapping interests and power Getting “buy-in” Finding allies and building a coalition Building a network Building negotiation skills Copyright © 2005 South-Western. All rights reserved.

50 Informal Network Network analysis shows how informal organization gets things done Network analysis focuses on three types of relationship networks: Advice network—those on whom others depend to solve problems Trust network—employees who share political information and back one another in a crisis Communication network—employees who talk about work-related matters on a regular basis The Press: Informal Network Copyright © 2005 South-Western. All rights reserved.

57 A Definition of CultureCulture refers to the symbolic or expressive side of human life Actions, objects, and ideas that carry specific meanings to particular groups and hence stand for something Culture provides a template on which meanings are read and actions are based Class Note: The Cultural Lens Copyright © 2005 South-Western. All rights reserved.

58 Cultural Perspective Cultural perspective focuses on meanings people assign to their respective work experiences Key to cultural perspective is symbolism Symbols: Are cultural objects or artifacts whose form, appearance, logic, and type can be categorized Are produced and used by people and groups within organizations for certain purposes Are always put forth in a particular period and context Mean different things to different people Class Note: The Cultural Lens Copyright © 2005 South-Western. All rights reserved.

59 Organizational CultureCulture and control—changing culture to motivate workers: Alter the organizational structure to bring employees closer to centers of control and decision making Create preferred organizational culture directly by recruitment, selection, training, placement, etc. Promote conceptual models of thought and action for employees to follow Employees that exhibit exemplary behavior become models of desirable behavior Class Note: The Cultural Lens Copyright © 2005 South-Western. All rights reserved.

60 Organizational Culture (cont’d)Subcultures Groups of people who share common identities based on characteristics that transcend or override their prescribed roles and relationships May form along class or ethnic lines because of cultural similarities Focus on subcultures emphasizes segmentation of organization culture Divisions form by organizational role, gender, religion, ethnicity, age, etc. Class Note: The Cultural Lens Copyright © 2005 South-Western. All rights reserved.

61 Cultural Diagnosis of OrganizationsSix important features of the cultural lens on organizations: Symbols and meaning Identity Social control Subcultures Cultural relativity Habits and history Copyright © 2005 South-Western. All rights reserved.

62 Some Underlying Dimensions of Organizational CultureThe organization’s relationship to its environment The nature of human activity The nature of reality and truth The nature of time The nature of human nature The nature of human relationships Homogeneity vs. diversity The Press: Organizational Culture Source: Tables adapted from Edgar H. Schein, Organizational Culture and Leadership. Copyright © 1985 by Jossey-Bass, Inc., Publishers. Used with permission. Copyright © 2005 South-Western. All rights reserved. Table 2.2

67 Features of 21st Century CorporationsManagement by Web More about bits, less about atoms Mass customization Dependent on intellectual capital Global Increased speed of actions, deliberations, information Class Notes: Management by Web Copyright © 2005 South-Western. All rights reserved.

69 Class Notes: A Team PrimerKey Terms Working group A small set of individuals who are aware of each other, interact with one another, and who have a sense of themselves together as a unit Team Has all of the characteristics of a working group in addition to having members working interdependently and being jointly accountable for performance goals Class Notes: A Team Primer Copyright © 2005 South-Western. All rights reserved.

70 Class Notes: A Team PrimerKey Terms (cont’d) High-performing teams Excel in several categories of team effectiveness—performance, member satisfaction, team learning, outsider satisfaction Hot groups Refers to a state of mind that exists in groups or teams whose members are motivated to stretch themselves to new levels Class Notes: A Team Primer Copyright © 2005 South-Western. All rights reserved.

71 Class Notes: A Team PrimerKey Terms (cont’d) Teamwork A set of values whereby members of some collective (a group, team, division, or organization) are encouraged to help one another, to listen and give feedback to others, and to provide support and recognition to others Team player A member of some collective (a group, team, division, or organization) who embodies teamwork values Class Notes: A Team Primer Copyright © 2005 South-Western. All rights reserved.

72 Class Notes: A Team PrimerTypes of Teams Quality circles (QCs) Small groups of employees who get together to solve quality-related problems such as quality control, cost reduction, and production planning Cross-functional teams Consist of members that represent multiple functions within the firm, who work together to improve the coordination among functions in such areas as product development, process improvement, and allocation of resources Class Notes: A Team Primer Copyright © 2005 South-Western. All rights reserved.

73 Types of Teams (cont’d)Self-managed teams (autonomous work groups) Make decisions and have the responsibility to hire members, allocate tasks and roles, determine work schedules and work flow, and handle disputes Office of the president The set of executives who run a corporation—the functional or divisional managers report directly to the CEO, manage internal operations, and help the CEO formulate strategy and manage external relations Class Notes: A Team Primer Copyright © 2005 South-Western. All rights reserved.

74 Types of Teams (cont’d)Transnational team Composed of people from different countries whose activities cross multiple borders Virtual team Composed of members who rely on electronic tools such as , fax, voice mail, videoconferencing, and “virtual workspaces” to communicate with each other Class Notes: A Team Primer Copyright © 2005 South-Western. All rights reserved.

75 Teams versus IndividualsTeams pro and con: Teams promise greater competitiveness, faster decision making, fewer levels of hierarchy, greater commitment and quality, greater employee satisfaction Teams may also be difficult to manage, evaluate, and support Creating teams requires investment in training and organizational design Work structured for individuals often takes less time and gives workers a greater sense of control Class Notes: A Team Primer Copyright © 2005 South-Western. All rights reserved.

76 Teams versus Individuals (cont’d)Use a team approach when Work requires a range of different skills, views, or expertise Different work components are highly interdependent Sufficient time is available to organize and structure team effort Organizational reward structure and culture support a team approach Class Notes: A Team Primer Copyright © 2005 South-Western. All rights reserved.

77 Teams versus Individuals (cont’d)Use a team approach when (cont’d) Need is identified to build commitment to a course of action or set of decisions Issues being worked on require refinement Needs are high for innovation and coordination Members can be trusted not to purposefully obstruct team’s efforts Individuals desire a team experience Class Notes: A Team Primer Copyright © 2005 South-Western. All rights reserved.

78 Components of Team EffectivenessPerformance How well team members produce output, measured in terms of quality, quantity, timeliness, efficiency, and innovation Member satisfaction How well team members create a positive experience through commitment, trust, and meeting individual needs Class Notes: A Team Primer Copyright © 2005 South-Western. All rights reserved.

79 Components of Effectiveness (cont’d)Team learning How well team members can acquire new skills, perspectives, and behaviors as needed by changing circumstances Outsider satisfaction How well team members meet the needs of outside constituencies Class Notes: A Team Primer Copyright © 2005 South-Western. All rights reserved.

81 Class Notes: A Team PrimerTeam Operations Internal team processes The ways in which team members interact with each other to accomplish the task and to keep themselves together as a team Boundary management The way in which teams define their boundaries, identify key external constituencies, and interact with those outsiders Class Notes: A Team Primer Copyright © 2005 South-Western. All rights reserved.

82 Class Notes: A Team PrimerTeam Context Organizational culture The values and underlying assumptions of an organization communicated through symbols, stories, and rituals Team design The way in which teams are put together, including their composition, the nature of their task, and their structure Class Notes: A Team Primer Copyright © 2005 South-Western. All rights reserved.

83 Class Notes: A Team PrimerTeam Context (cont’d) Rewards Formal and informal benefits given for individual and team performance act as a key determinant of how team members will interact with one another and those outside the team Class Notes: A Team Primer Copyright © 2005 South-Western. All rights reserved.

84 Overview Team effectiveness is enhanced when team members answer five important questions: Who are we? What do we want to accomplish? How can we organize ourselves to meet our goals? How will we operate? How can we continuously learn and improve? Handbook Copyright © 2005 South-Western. All rights reserved.

85 I. Who Are We? Team must begin by coming to terms with its compositionTo begin the process of getting to know each other: Ask team members to share basic personal information and previous team experience Discuss responses as a team Discuss how the team can capitalize on similarities and differences among team members Handbook Copyright © 2005 South-Western. All rights reserved.

86 II. What Do We Want to Accomplish?Team members must first agree on goals Categories of team goals: Performance—the team’s output Member satisfaction—providing team members with a positive experience Team learning—developing the team’s ability to survive, improve, and adapt to changing circumstances Outsider satisfaction—meeting the demands of, and pleasing, outside constituencies Handbook Copyright © 2005 South-Western. All rights reserved.

87 III. How Can We Organize Ourselves?Three major aspects are involved in organizing a team: Creating a work structure requires that the team move from the goals to the work that needs to be done to achieve those goals Roles are specific activities taken on by particular individuals: facilitator, project manager, and boundary manager Norms refer to expectations of acceptable behavior; they are unwritten rules enforced by team members Handbook Copyright © 2005 South-Western. All rights reserved.

88 III. How Can We Organize (cont’d)Teams must discuss and agree upon norms Categories of norms: Meeting norms—when, were, and how often to meet Working norms—standards, deadlines, distribution of effort and work Communication norms—when communication should take place and who is responsible Leadership norms—whether a leader is needed Consideration norms—being considerate of members’ comfort with smoking, swearing, etc. Handbook Copyright © 2005 South-Western. All rights reserved.

89 IV. How Will We Operate? When planning an agenda:Write down the major items that the team wishes to tackle Ensure that all team members have the opportunity to contribute Clarify what the team wants to accomplish for each item—discussion, brainstorming, making a decision, taking action, etc. Prioritize items and allocate time to each Leave time at the end to discuss how the meeting went Handbook Copyright © 2005 South-Western. All rights reserved.

90 V. How Can We Learn and Improve?When giving feedback, describe problem and how it affects you and the team Feedback should: Be specific, not general Describe behavior, not judge the person Start with the word I, not the word you (to avoid blaming) Be timely Handbook Copyright © 2005 South-Western. All rights reserved.

91 V. How Can We Learn (cont’d)When assessing yourself or the team, ask these questions: Goals—Are my and our goals being met? Roles and structure—What are our roles? What works or doesn’t work in our team structure? Process—How effectively do we make decisions and resolve conflict? Plans to change—How can we improve any of these areas? Handbook Copyright © 2005 South-Western. All rights reserved.

92 Individual Analysis of TeamStep 1: Collect Some Data Step 2: Find an Efficient Way to Present Data Step 3: Analyze the Team’s Internal Process Step 4: Analyze Your Own Behavior Step 5: Provide Suggestions for What the Team Can Do to Improve Its Performance Step 6: Provide Suggestions for How the Team Can Change Copyright © 2005 South-Western. All rights reserved. Handout 3.2

95 The Press: Mapping Managerial StylesPersonal Work Styles Four activities that every worker has to do each day are: Meeting with others Generating information Making decisions Choosing priorities The Press: Mapping Managerial Styles Copyright © 2005 South-Western. All rights reserved.

96 Personal Work Styles (cont’d)Meeting with others This activity also called managing relationships Two approaches for managing relationships: Extroverted Introverted Generating information Two aspects of gathering information: Sensing Intuition The Press: Mapping Managerial Styles Copyright © 2005 South-Western. All rights reserved.

97 Personal Work Styles (cont’d)Making decisions Two options for dealing with information that has been gathered: Thinking Feeling Choosing priorities Choices must be made in how to allocate time Priorities are: Getting more facts (sensing) or ideas (intuition) Making decisions (thinking or feeling) The Press: Mapping Managerial Styles Copyright © 2005 South-Western. All rights reserved.

98 Personality PreferencesExtrovert ——— Establishing Relations ——— Introvert Sensing ——— Generating Information ——— Intuitive Thinking ——— Making Decisions ——— Feeling Judgmental ——— Choosing Priorities ——— Perceptive The Press: Mapping Managerial Styles Copyright © 2005 South-Western. All rights reserved.

99 Establishing Relationships: Extrovert ApproachWill often think things out by talking them through Enjoys meeting other people and often seeks social gatherings Enjoys a variety of tasks and activities Stimulated by unanticipated interruptions When speaking publicly will often talk impromptu Likely to contribute a lot at meetings Can be impulsive The Press: Mapping Managerial Styles Copyright © 2005 South-Western. All rights reserved.

100 Establishing Relationships: Introvert ApproachPrefers to think things out before speaking Does not have a high need to meet regularly with others Likes to concentrate on a few tasks at a time Dislikes unanticipated interruptions When speaking publicly will prepare in depth and speak to a plan May be more quiet at meetings More likely to consider things before acting The Press: Mapping Managerial Styles Copyright © 2005 South-Western. All rights reserved.

101 Generating Data: Sensing ApproachPrefers practical problems Prefers systems and methods Likes to work with tested ideas Likes to work with real things Patient with routine detail Will test established facts Pays attention to facts and detail Wants to see detailed parts Likes schedule of working Searches for standard problem-solving approach The Press: Mapping Managerial Styles Copyright © 2005 South-Western. All rights reserved.

102 Generating Data: Intuitive ApproachEnjoys ambiguous problems Gets bored with routine problems Regularly floats new ideas Sees possibilities and implications Frequently jumps beyond the facts May get facts wrong Has creative vision and insight Follows inspirations Searches for the new; innovation Likes complexity and searches for creative approaches The Press: Mapping Managerial Styles Copyright © 2005 South-Western. All rights reserved.

103 Making Decisions: Thinking ApproachTries to establish objective decision criteria Measures decisions against payoffs Can be seen as detached and cold Believes in deciding according to situation Is likely to be flexible depending on situation Negotiates on the evidence Has concern for fairness based on the rules Likes analysis and clarity Sets objectives and beliefs follow Task orientated The Press: Mapping Managerial Styles Copyright © 2005 South-Western. All rights reserved.

104 Making Decisions: Feeling ApproachHas personal subjective decision criteria Measures decisions against beliefs Can be seen as overcommitted to a point of view Believes in deciding on personal considerations Is likely to be nostalgic, holding to traditional ways Negotiates on rights and wrongs of the issues Believes fairness relates to values and beliefs Likes harmony based on common values Objectives emerge from beliefs Principles orientated The Press: Mapping Managerial Styles Copyright © 2005 South-Western. All rights reserved.

105 Establishing Priorities: Judging ApproachLikes clarity and order Concerned with resolving matters Dislikes ambiguity Very orderly May rush to quick decisions Can be somewhat inflexible once judgment is made Concerned to work to a plan Emphasizes decision making over information getting Concerned with implementation Likes to get things resolved and operating The Press: Mapping Managerial Styles Copyright © 2005 South-Western. All rights reserved.

106 Establishing Priorities: Perceptive ApproachEnjoys searching and finding May procrastinate in search of even better information Can tolerate ambiguity Concerned to know, not organized Takes in lots of data—maybe too much Open minded and curious Works according to the requirements of the data Emphasis on diagnosing over concluding and resolving Concerned with knowledge Likes to find out as much as possible before action The Press: Mapping Managerial Styles Copyright © 2005 South-Western. All rights reserved.

111 Class Notes: Team Process Observation GuideTeam Membership Teams in which members are familiar or tied to each other are better at sharing information Key aspect of an effective team is “transactive memory system” Team members keep current on what other members know Members channels information to appropriate person Members seek best form of expertise when a problem arises Class Notes: Team Process Observation Guide Copyright © 2005 South-Western. All rights reserved.

112 Team Membership (cont’d)Key questions concerning membership: Do team members have required expertise and authority to carry out task? What are the personalities and styles of members? What is the racial and gender mix within the team? How committed are individual members to the team? Which hierarchical levels and functional teams are represented? Are team members strangers? How well can members identify and use expertise of other members? Class Notes: Team Process Observation Guide Copyright © 2005 South-Western. All rights reserved.

113 Organizational Context of TeamOrganization in which a team operates contributes to its success or failure Problems occur when: Organizational mission is unclear Tasks are poorly designed Teams are not allowed sufficient autonomy Rewards are granted to individuals rather than to teams Class Notes: Team Process Observation Guide Copyright © 2005 South-Western. All rights reserved.

114 Organizational Context of Team (cont’d)Questions regarding organizational context include: Have the goals and tasks of the team been clearly identified? Are team members rewarded for individual rather than team performance? Has management granted the team enough autonomy to accomplish the task? Does the team have access to the information and resources needed to perform its task? Class Notes: Team Process Observation Guide Copyright © 2005 South-Western. All rights reserved.

115 Class Notes: Team Process Observation GuideTeam Processes Task and maintenance functions Decision making Communication Influence Conflict Atmosphere Emotional issues Class Notes: Team Process Observation Guide Copyright © 2005 South-Western. All rights reserved.

116 Task and Maintenance FunctionsTask functions help team members to organize themselves to get work done Setting team agendas, keeping the team on target, prioritizing tasks, structuring the decision making process, proposing alternative ways to solve problems Maintenance functions hold the team together so that members can continue to get along with each other and even have some fun Class Notes: Team Process Observation Guide Copyright © 2005 South-Western. All rights reserved.

117 Functions Required for Effective Group FunctionsFunctions that build task accomplishment Initiating Seeking Information and Opinions Providing Information and Opinions Clarifying Elaborating Summarizing Consensus Testing Functions that build and maintain a group Harmonizing Compromising Gatekeeping Encouraging Class Notes: Team Process Observation Guide Copyright © 2005 South-Western. All rights reserved. Figure 5.2

118 Class Notes: Team Process Observation GuideTeam Decision Making Four steps in decision making: Identify the problem or opportunity Analyze the problem Propose and evaluate solutions Implement the decision It is important to set a norm of communicating doubts and divergent viewpoints Consensus decision making allows all team members to participate but may take too long Class Notes: Team Process Observation Guide Copyright © 2005 South-Western. All rights reserved.

119 Team Decision Making (cont’d)Questions concerning decision making include: Does the team follow the four steps of decision making? Does the team move too quickly toward a solution? Does the team encourage minority opinion? Which form of decision making does the team use? Consensus, consultative, or leader decides? Can the team change its form of decision making if necessary? Class Notes: Team Process Observation Guide Copyright © 2005 South-Western. All rights reserved.

120 Class Notes: Team Process Observation GuideTeam Communication Communication patterns offer clues as to: Who is influencing the team Which subgroups and coalitions exist How well the team is progressing How members are feeling Team communication patters can be measured using a sociogram Class Notes: Team Process Observation Guide Copyright © 2005 South-Western. All rights reserved.

122 Team Communication (cont’d)Sociograms offer clues as to: Who are the most and least frequent participators? Are there shifts in participation? What causes them? Who talks to whom? Who responds to whom? How are “silent” and “noisy” members handled? Are team members with the requisite information contributing? Class Notes: Team Process Observation Guide Copyright © 2005 South-Western. All rights reserved.

123 Class Notes: Team Process Observation GuideTeam Influence Influence commonly shifts throughout a team’s history Influence is related to a member’s status within the organizational hierarchy, level of experience, and personality Team members can influence one another through use of “influence tactics” Class Notes: Team Process Observation Guide Copyright © 2005 South-Western. All rights reserved.

124 Class Notes: Team Process Observation GuideInfluence Tactics Rational Persuasion Inspirational Appeals Consultation Ingratiation Personal Appeals Exchange Coalition Tactics Legitimating Tactics Pressure Class Notes: Team Process Observation Guide Copyright © 2005 South-Western. All rights reserved. Figure 5.4

125 Team Influence (cont’d)Questions on influence patterns include: Who has the most impact on the team’s actions and decisions? Whose ideas are ignored? What is the result? What tactics do members use to influence one another? Is there rivalry in the team? What effect does it have? How does the formal leader exert his/her influence? Class Notes: Team Process Observation Guide Copyright © 2005 South-Western. All rights reserved.

126 Class Notes: Team Process Observation GuideTeam Conflict Conflict can be advantageous or problematic, depending on what type of conflict it is “Good” conflict is called substantive conflict “Bad” conflict is called affective conflict A frequent problem in cohesive teams is groupthink Team members avoid all types of conflict and shy away from deviating from the apparent team consensus Class Notes: Team Process Observation Guide Copyright © 2005 South-Western. All rights reserved.

127 Team Conflict (cont’d)Questions regarding team conflict include: How often do members disagree about the work to be done? Is this conflict useful? To what extent do people take the arguments in the team personally? How can this conflict be managed? How often do members get angry with one another while working? Do team members feel free to disagree? Class Notes: Team Process Observation Guide Copyright © 2005 South-Western. All rights reserved.

128 Class Notes: Team Process Observation GuideTeam Atmosphere Team members may have different expectations and assumptions about how team will function Way in which differing expectations are resolved determines what the climate or atmosphere in the team will be Key to creating a trusting, supportive team is “psychological safety”—a shared belief that the team is safe for interpersonal risk taking Class Notes: Team Process Observation Guide Copyright © 2005 South-Western. All rights reserved.

129 Team Atmosphere (cont’d)Questions that help characterize team atmosphere include: Are people friendly and open or formal with one another? Are people involved and interested? Are people in constant conflict or disagreement? Is any attempt made to avoid unpleasantness by ignoring tough issues? Do people feel safe enough to take interpersonal risks? Class Notes: Team Process Observation Guide Copyright © 2005 South-Western. All rights reserved.

130 Supportive and Defensive EnvironmentsCharacteristics of a supportive environment Provisionalism Empathy Equality Spontaneity Problem Orientation Clear Description Characteristics of a defensive environment Evaluation Control Stratagems Superiority Dogmatism Class Notes: Team Process Observation Guide Source: Patton, Giffin, and Patton Decision-Making Team Interaction. New York: Harper & Row. Copyright © 2005 South-Western. All rights reserved. Figure 5.5

131 Class Notes: Team Process Observation GuideEmotional Issues Team members may struggle with emotional issues associated with teams: Identity—who am I in this team? Goals and needs—what do I want from this team? Power and control—who will control what we do? Intimacy—how close will we get to each other? Class Notes: Team Process Observation Guide Copyright © 2005 South-Western. All rights reserved.

132 Emotional Issues (cont’d)Group members may react to emotional issues by exhibiting behavior such as: Fighting and controlling—asserting personal dominance Withdrawing—trying to reduce discomfort by psychologically leaving the team Dependency and counterdependency—waiting passively for a leader to emerge who will solve the problem or opposing anyone in the team who represents authority Class Notes: Team Process Observation Guide Copyright © 2005 South-Western. All rights reserved.

135 Boundary Management Boundary management refers to the way in which a team handles interactions with those outside its boundary Boundary management: A major team operation category Plays key role in creating and maintaining team effectiveness Is critical to achieving cross-functional coordination, speedy delivery of new products, and integration across nations and firms Overview Copyright © 2005 South-Western. All rights reserved.

136 Boundary Management (cont’d)Teams need to manage various interfaces and interconnections with parts of the organization These interactions can be examined across the following dimensions: Influence Task coordination Information Class Note: Outward Bound Copyright © 2005 South-Western. All rights reserved.

137 Boundary Management (cont’d)Influence dimension is vertical Important external connections are upward Upward communication helps a team align goals with that of top management Team needs to identify secure, effective sponsorship within upper management Class Note: Outward Bound Copyright © 2005 South-Western. All rights reserved.

138 Boundary Management (cont’d)Task coordination is essentially horizontal Involves lateral connections across functions and managing a team’s work interdependence with other units Teams bargain with other groups, trade services or resources, and get feedback from others Teams coordinate with other groups, pushing them to meet deadlines and deliver on commitments made to the team Class Note: Outward Bound Copyright © 2005 South-Western. All rights reserved.

139 Boundary Management (cont’d)Information activity is also largely lateral Liaison involves: Investigating markets, technologies, and competition Gathering information on what is going on in other parts of the organization Bringing large amounts of data to the team Class Note: Outward Bound Copyright © 2005 South-Western. All rights reserved.

140 Boundary Management (cont’d)Steps in carrying out boundary activity: First, educate team members about its importance Next, team members must organize themselves to carry out a comprehensive strategy Then, team must decide how to allocate the work of managing liaisons Class Note: Outward Bound Copyright © 2005 South-Western. All rights reserved.

142 The Press: The Comparative Advantage of X-TeamsX-Teams Defined X-teams: Are externally oriented, adaptive teams that emphasize outreach to stakeholders Respond more nimbly than traditional teams to rapidly changing characteristics of work, technology, and customer demands Often outperform their traditional counterparts Effective teams today must be able to adapt to new competitive landscape, as X-teams do The Press: The Comparative Advantage of X-Teams Copyright © 2005 South-Western. All rights reserved.

143 The Press: The Comparative Advantage of X-TeamsComponents of X-Teams X-teams are set apart from traditional teams by five components: External activity Extensive ties Expandable structures Flexible membership Internal mechanisms for execution The Press: The Comparative Advantage of X-Teams Copyright © 2005 South-Western. All rights reserved.

145 Components of X-Teams (cont’d)External activity High levels of external activity are key Outreach may be role of leader or any member External activities: Ambassadorial activity—aimed at managing upward Scouting—lateral and downward searches through the organization for knowledge and expertise Task coordination—managing the lateral connections across functions and interdependencies with other units The Press: The Comparative Advantage of X-Teams Copyright © 2005 South-Western. All rights reserved.

146 Components of X-Teams (cont’d)Extensive ties To engage in external activities, X-team members need to have extensive ties with outsiders Types of ties: Weak ties—good for specific purposes Strong ties—forged when relationships are critical on both sides and built over long periods of time The Press: The Comparative Advantage of X-Teams Copyright © 2005 South-Western. All rights reserved.

147 Components of X-Teams (cont’d)Expandable tiers X-teams operate through three distinct tiers that create differentiated team membership: Core members—carry the team’s history and identity Operational members—do the ongoing work Outer-net members—join the team to handle tasks that are separable from ongoing work The Press: The Comparative Advantage of X-Teams Copyright © 2005 South-Western. All rights reserved.

148 Components of X-Teams (cont’d)Flexible membership X-team membership is fluid People may move in and out of the team during its life or move across tiers The Press: The Comparative Advantage of X-Teams Copyright © 2005 South-Western. All rights reserved.

149 Components of X-Teams (cont’d)Mechanisms for execution Traditional coordination mechanisms are as important to X-teams as to other teams X-teams use three coordination methods: Integrative meetings Transparent decision making Scheduling tools such as shared timelines The Press: The Comparative Advantage of X-Teams Copyright © 2005 South-Western. All rights reserved.

150 Create a Supportive Organizational EnvironmentCreating an X-Team Staffing the Team • Before staffing the team, understand the external context • Change team members as needed • Treat a team member’s connections as a key competency Building the Team • Map the external domain, including key stakeholders • Create mechanisms for internal and external communication • Set team goals, knowing what external constituencies want Create a Supportive Organizational Environment • Design and support a three-tier team structure • Formulate decision rules for an unambiguous yet flexible process • Maintain a rich information infrastructure • Establish a learning culture X-Team Copyright © 2005 South-Western. All rights reserved.

152 Overview Old model of employment: New model of employment:Bounded, hierarchical, fixed, homogeneous, and local New model of employment: Networked, flat, flexible, diverse, and global Overview Copyright © 2005 South-Western. All rights reserved.

153 Overview (cont’d) As organizations move from bounded to networkedPlus: Opportunities arise for collaboration with new colleagues across boundaries Minus: Careers will involve a patchwork of jobs in different organizations Question: How can managers maintain loyalty between employees and companies and between employees and teams as memberships are in flux? Overview Copyright © 2005 South-Western. All rights reserved.

154 Overview (cont’d) As organizations move from hierarchical to flatPlus: More employees at all levels have access to decision-critical information Minus: Fewer vertical promotion paths and confusion about what “career success” means Question: How can managers motivate employees without the traditional promise of promotions? Overview Copyright © 2005 South-Western. All rights reserved.

155 Overview (cont’d) As organizations move from fixed to flexiblePlus: Employees have a range of ways to organize the time and space in which they work Minus: It may be difficult to coordinate the efforts of employees working under different arrangements Question: How can managers balance flexibility and coordination? Overview Copyright © 2005 South-Western. All rights reserved.

156 Overview (cont’d) As organizations move from homogeneous to diversePlus: A range of new approaches to work will be stimulated as new groups are included Minus: Differences may breed contests between groups Question: How can managers be responsive to diverse constituencies in ways that respect differences but are also fair and consistent? Overview Copyright © 2005 South-Western. All rights reserved.

157 Overview (cont’d) As organizations move from local to globalPlus: New ways to include multiple stakeholders will be added to the menu Minus: Range of choices will make it more challenging to present any one choice as legitimate Question: How can managers learn from different global examples? Overview Copyright © 2005 South-Western. All rights reserved.

158 “Old” Versus “New” Employment RelationshipFrom World War II through the 1970s Sustained period of shared prosperity Many employees worked in “internal labor markets” Long-term employment with one employer Internal advancement up a company job ladder Well-defined jobs linked in a progression that defined a career Individual compensation based on merit, seniority From the mid-1970s to the mid-1990s Productivity growth slowed Real wages stagnated Restructuring produced significant white-collar layoffs Class Note: Managing a Changing Workforce in Turbulent Times Copyright © 2005 South-Western. All rights reserved.

159 “Old” Versus “New” Employment Relationship (cont’d)Today more jobs are filled by turning to the external market rather than promoting from within The new employment relationship is “market mediated” rather than an internal labor market process Class Note: Managing a Changing Workforce in Turbulent Times Copyright © 2005 South-Western. All rights reserved.

160 “Old” Versus “New” Employment Relationship (cont’d)Employment security From the 1950s to the 1970s, U.S. employees and employers expected employment relationship to be long term During the 1980s, this “implicit contract” changed; large companies began to lay off employees as part of restructuring efforts At the same time, these companies were also hiring new employees Class Note: Managing a Changing Workforce in Turbulent Times Copyright © 2005 South-Western. All rights reserved.

161 “Old” Versus “New” Employment Relationship (cont’d)Reasons for restructuring and reorganizing: Globalization and international competition Changing technologies Easier to hire new workers than retrain employees The wage bill was the first to be cut Getting rid of “dead wood” Competition prompted companies to do more with fewer people Declining union power Subcontractors, temporary workers, outsourcing Class Note: Managing a Changing Workforce in Turbulent Times Copyright © 2005 South-Western. All rights reserved.

162 “Old” Versus “New” Employment Relationship (cont’d)Advancement Traditionally, employees spent a career advancing within a company Flattening of job ladders resulted in fewer or different types of advancement Lateral advancement or advancement up the levels of a skill set are now common Class Note: Managing a Changing Workforce in Turbulent Times Copyright © 2005 South-Western. All rights reserved.

163 “Old” Versus “New” Employment Relationship (cont’d)Jobs and compensation: Traditional organization chart with strict hierarchical links has been replaced by a web of interconnecting tasks and relationships Individual jobs are increasingly multiskilled Employees are encouraged to cross-train and learn a variety of tasks to allow for job rotation Compensation systems need to shift from individual incentives tied to specific job titles to rewards for learning new skills and working effectively in teams Class Note: Managing a Changing Workforce in Turbulent Times Copyright © 2005 South-Western. All rights reserved.

164 Changes in the Distribution of the U. SChanges in the Distribution of the U.S. Labor Force by Subgroup, 1994–2005 (number in thousands, percent in parentheses) Class Note: Managing a Changing Workforce in Turbulent Times Source: From Judith Friedman and Nancy DiTomaso, “Myths About Diversity; What Managers Need to Know About Changes in the U.S. Labor Force.” Copyright © 1996, by The Regents of the University of California. Reprinted from the California Management Review, vol. 38, no. 4. By permission of the Regents. * Does not add up to zero due to rounding error. Copyright © 2005 South-Western. All rights reserved. Figure 7.1

165 Class Note: Managing a Changing Workforce in Turbulent TimesFlexibility Demand for flexibility in work often traced to entrance of women into paid workforce Rise of women into higher organizational positions prompted new dialogues on balancing work and family Dialogue expanded from “women’s issue” to include: Parental leave time Flexible time arrangements for caring for parents or ill family members Class Note: Managing a Changing Workforce in Turbulent Times Copyright © 2005 South-Western. All rights reserved.

166 Class Note: Managing a Changing Workforce in Turbulent TimesFlexibility (cont’d) Flexibility choices: Flexible space Telecommuting, virtual offices Flexible time and allocation of tasks Flex time, part-time work, job sharing Flexible career paths Challenge is to overcome fear that flexible work arrangements will damage career opportunities Flexible workforce size and firm boundaries Reliance on temporary workers may result in loss of employee loyalty and commitment Class Note: Managing a Changing Workforce in Turbulent Times Copyright © 2005 South-Western. All rights reserved.

167 Human Assets and 21st Century Organizational FormsLabor costs are normally the largest variable cost in most firms, so employee costs are tightly controlled When employees leave, they may take significant portions of a firm’s assets (knowledge and clients) with them Organizations need to find ways to retain critical knowledge workers Class Note: Managing a Changing Workforce in Turbulent Times Copyright © 2005 South-Western. All rights reserved.

168 Class Note: Managing a Changing Workforce in Turbulent TimesContrasting Assumptions in Twentieth- and Twenty-First-Century Organizations Class Note: Managing a Changing Workforce in Turbulent Times Source: Thomas A. Kochan, Wanda Orlikowski, and Joel Cutcher Gershenfeld, “Beyond McGregor’s Theory Y: Human Capital and Knowledge Work in the 21st Century Organization,” MIT Sloan School of Management, 2002. Copyright © 2005 South-Western. All rights reserved. Figure 7.2

172 Organizational ChangeOver past two decades, most organizations have undergone change initiatives Success rate of change initiatives has been startlingly low; according to European execs: 20% of change initiatives were successful 63% produced some change that was not sustained 17% had no result at all Class Note: Organizational Change Copyright © 2005 South-Western. All rights reserved.

173 Why Is Organizational Change Difficult?Human nature’s resistance to change Organizational inertia Unanticipated consequences of organizational change initiatives Class Note: Organizational Change Copyright © 2005 South-Western. All rights reserved.

174 Why Is Change Difficult? (cont’d)Meanings of organizational change: Change in organization design Organization chart, integration mechanisms, systems for motivating people Change in power structure Changes in who makes decisions, which individuals and groups influence decisions, what interests are served Change in culture Change in norms, values, mental models, shared assumptions about the organization and its environment Class Note: Organizational Change Copyright © 2005 South-Western. All rights reserved.

175 Stage Models of Change ProcessesKurt Lewin’s model of organizational change: Three-stage sequence: unfreezing–change–refreezing Lewin saw organizations as social systems highly resistant to change because of: Human nature Organizational inertia Lewin’s work laid foundations of field of organizational development (OD) and other stage models Class Note: Organizational Change Copyright © 2005 South-Western. All rights reserved.

177 Class Note: Organizational ChangeDimensions of Change Scope of change—radical or incremental Pacing of change—punctuated or continuous Source of change—top-down or bottom-up Process of change—planned or emergent Class Note: Organizational Change Copyright © 2005 South-Western. All rights reserved.

178 Dimensions of Organizational ChangeRadical Incremental Top-down Bottom-up Punctuated Continuous Planned Emergent Class Note: Organizational Change Copyright © 2005 South-Western. All rights reserved. Figure 8.2

179 Being a More Effective Change AgentExpand your repertoire of actions Avoid mistakes Work with temporal sequencing Become a sophisticated consumer of advice on change Class Note: Organizational Change Copyright © 2005 South-Western. All rights reserved.

180 The Life Cycle of a Typical Change InitiativeReadings: The Life Cycle of Typical Change Initiatives Source: From The Dance of Change by Peter M. Senge, Kleiner, Roberts and Ross, copyright © 1999 by Peter Senge, Art Kleiner, Charlotte Roberts and Richard Ross. Used by permission of Doubleday, a division of Random House, Inc. Copyright © 2005 South-Western. All rights reserved.

181 The Five “Learning Disciplines” of The Fifth DisciplinePersonal mastery Shared vision (aspiration) Mental models Team learning (reflection and inquiry) Systems thinking Readings: The Life Cycle of Typical Change Initiatives Copyright © 2005 South-Western. All rights reserved.

182 The Myth of the Hero-CEO“Significant change only occurs when it is driven from the top” “There is no point in going forward unless the CEO is on board” “Nothing will happen without top management buy-in” Readings: The Leadership of Profound Change Copyright © 2005 South-Western. All rights reserved.

183 A Different View of Executive Leadership“Little significant change can occur if it is driven only from the top” “CEO proclamations and programs rolled out from corporate headquarters are a great way to foster cynicism and distract everyone from real efforts to change” “Top management buy-in is a poor substitute for genuine commitment and learning capabilities at all levels in an organization” Readings: The Leadership of Profound Change Copyright © 2005 South-Western. All rights reserved.

186 The Integrated Learning ProcessInvolve and engage all your employees, as well as customers, partners, and suppliers Identify and transfer best practices from inside and outside the company Integrate these initiatives with key human resource practices Set “stretch goals” Readings: Culture Change at General Electric Copyright © 2005 South-Western. All rights reserved.

188 Strategic Design Perspective: “Organization Set”Organization set model maps resource environment in terms of input set and output set Input set includes organizations that provide required inputs (materials, components, human resources, financial resources, technology, knowledge) Output set includes customers for organization’s output of goods and services as well as distributors, retailers, service organizations, etc. Copyright © 2005 South-Western. All rights reserved. Class Notes: Organizations and Their Environments

189 Strategic Design Perspective (cont’d)Two additional elements of organization set: Regulatory set—organizations with formal authority to regulate internal processes, size of input and output sets, and kinds of relationships organization is allowed to build Set of competitors—competitors may also be parts of input set Copyright © 2005 South-Western. All rights reserved. Class Notes: Organizations and Their Environments

191 Strategic Design Perspective (cont’d)Internal inking mechanisms Liaison or integrator positions Temporary boundary-spanning groups Permanent boundary-spanning groups IT systems Copyright © 2005 South-Western. All rights reserved. Class Notes: Organizations and Their Environments

192 Strategic Design Perspective (cont’d)External linking mechanisms Performance measurement systems Incentive systems Resource allocation Human resource development Copyright © 2005 South-Western. All rights reserved. Class Notes: Organizations and Their Environments

193 Political Perspective: Stakeholders ModelDistinction may be made between internal and external stakeholders Stakeholder model focuses on two key variables: Interests What does each set of stakeholders want? How clearly defined are those interests? What are the priorities assigned to those interests, and can priorities be altered? Power and influence What is the basis of power or influence of each set of stakeholders over the organization? Copyright © 2005 South-Western. All rights reserved. Class Notes: Organizations and Their Environments

195 Political Perspective (cont’d)Key tools for action in organization-environment relations: Mobilization of the interests of external stakeholders Coalition-building between internal and external stakeholders and among external stakeholders Cooptation as one stakeholder or set of stakeholders gets others to accept its own agenda, either through persuasion or through offering to further their interests in some way Copyright © 2005 South-Western. All rights reserved. Class Notes: Organizations and Their Environments

196 Political Perspective (cont’d)External stakeholders generally have a lower stake in an organization than internal stakeholders External stakeholders can use influence over organization to obtain outcomes desired by a set of internal stakeholders External stakeholders can use same key tools for action to influence an organization Copyright © 2005 South-Western. All rights reserved. Class Notes: Organizations and Their Environments

197 Cultural Perspective: Institutional FieldsShared ways in which people see and interpret social context are as important to understanding organizations as resources and power Organizations are embedded in a social system of expectations, taken-for-granted ways of doing things, status, and legitimacy Institutional field concept analyzes interactions between organizations and their environments Copyright © 2005 South-Western. All rights reserved. Class Notes: Organizations and Their Environments

198 Cultural Perspective (cont’d)Institutional field Key suppliers, resource and product consumers, regulatory agencies, and other organizations that produce similar services or products Institutionalization The process by which certain organizational patterns come to be accepted as legitimate, as the right way or only way to do things Copyright © 2005 South-Western. All rights reserved. Class Notes: Organizations and Their Environments

200 Cultural Perspective (cont’d)Isomorphism The processes by which organizations become similar to others in their field Coercive isomorphism—when a powerful organization or stakeholder imposes its structural and procedural demands on an organization Normative isomorphism—when professional or interest groups insist that such patterns are the “right” way to do things Mimetic isomorphism —when organizations take successful organizations as their models Copyright © 2005 South-Western. All rights reserved. Class Notes: Organizations and Their Environments

201 Cultural Perspective (cont’d)Institutional field model has displaced older concept of national culture National culture models don’t allow for: Variations within countries across corporate cultures Changes occurring in organizational patterns over time Institutional field model addresses both these points Institutional field model is at the center of debates over globalization Copyright © 2005 South-Western. All rights reserved. Class Notes: Organizations and Their Environments

202 Integrating PerspectivesOrganization set model focuses on how tools of organization design can be used to improve interorganizational relationships Stakeholders model directs attention to how external stakeholders can influence organization decision making Institutional field model highlights importance of external models, legitimation, and attention from external structuring agencies Copyright © 2005 South-Western. All rights reserved. Class Notes: Organizations and Their Environments

203 Learning Across Borders: Disneyland on the MoveModule 10 Learning Across Borders: Disneyland on the Move PowerPoint Presentation by Charlie Cook Copyright © 2005 South-Western. All rights reserved.

204 Disneyland: At the Top of the TradeOpening in 1955 was nearly a disaster Recovery was swift and sure: More than a million visitors within six months Income of Walt Disney Productions grew from $11.6 million in 1954 to $58.4 million in 1959 In 2002, Disneyland drew just under 23 million visitors Copyright © 2005 South-Western. All rights reserved. Class Notes: Disneyland in the US of A

205 Disneyland Viewed as a ProductDisneyland is part movie center, carnival, tourist site, shopping mall, museum, state fair, playground, shrine, etc. One of most striking features is celebration of America: Walt Disney dedicated the park to “the ideals, the dreams, and the hard facts which have created America” Copyright © 2005 South-Western. All rights reserved. Class Notes: Disneyland in the US of A

206 Disneyland’s Unifying ThemesContrasts between Disneyland and contemporary urban life Banishment or minimization of all signs of decay, crime, confusion, discontent, pain, or struggle Reduction wherever possible of social, stylistic, and ideological diversity on the part of employees and customers Near total control of environment to create a common and structured experience for visitors Copyright © 2005 South-Western. All rights reserved. Class Notes: Disneyland in the US of A

207 Class Notes: Disneyland in the US of ADisneyland Structure Three groups of people responsible for control of Disneyland: Imagineers—designers of rides, presentations, and environment Suits—finance, marketing, and management Cast members—front-line staff most visible to the customers Copyright © 2005 South-Western. All rights reserved. Class Notes: Disneyland in the US of A

208 Disneyland Goes to FloridaDisney wanted to tap the larger American market Only 2 percent of average daily attendance during first five years came from eastern portion of U.S. Disney wanted to diversify business from motion pictures Disney also wanted to control environment surrounding the park Copyright © 2005 South-Western. All rights reserved. Class Notes: Disneyland in the US of A

209 Disney and Local GovernmentDisney’s negotiations with Orlando resulted in considerable power for the company Disney has near total control of Florida land holdings The company can control police and fire services, build roads, lay sewer lines, regulate sale of alcoholic beverages, build an airport or nuclear power plant Disney World growth decisions are thus outside the reach of voters and elected officials Copyright © 2005 South-Western. All rights reserved. Class Notes: Disneyland in the US of A

210 Disney World Vs. DisneylandMagic Kingdom in Disney World lacks intimacy of Disneyland Disney World stay is a matter of days rather than hours Orlando represents a “total destination site” Disney World is measure of choice for those who want to build another Disneyland Copyright © 2005 South-Western. All rights reserved. Class Notes: Disneyland in the US of A

211 Class Notes: Disneyland in the US of AThe Eisner Era Michael Eisner rescued Disney from film failures, declining attendance at parks As of 2004, activities put together during the Eisner regime include: Films, videotapes, television, and radio programs Theatrical shows Cruise ships Retail stores Resort properties Copyright © 2005 South-Western. All rights reserved. Class Notes: Disneyland in the US of A

212 Class Notes: Disney Goes to TokyoOriental Land Company approached Disney in mid-1970s with idea of building Disneyland in Japan Disney left Oriental Land with virtually all the risk and demanded royalties of 15 percent Disney also asked for artistic control of the park Copyright © 2005 South-Western. All rights reserved. Class Notes: Disney Goes to Tokyo

213 Class Notes: Disney Goes to TokyoDisney wished to localize Disneyland Japan, but Japanese partners resisted Japanese partners persuaded Disney to replicate the American original as closely as possible Copyright © 2005 South-Western. All rights reserved. Class Notes: Disney Goes to Tokyo

214 Class Notes: Disney Goes to TokyoTokyo Disneyland opened in April 1983 to small crowds but in August it drew 93,000 people in a single day By late 1980s it drew more than 15 million people per year Tokyo Disneyland now has “second gate” and attendance from two parks nearing 25 million visitors per year Employee count is 20,000 (75% entry-level part-time workers) Copyright © 2005 South-Western. All rights reserved. Class Notes: Disney Goes to Tokyo

215 Class Notes: Disney Goes to ParisSuccess of Tokyo Disneyland led Disney to believe it had a “sure-fire global winner” Disney played bidders from Spain and France off one another France offered more attractive deal: 4,800 acres of land at below-market prices Long-term property and employer tax breaks Low-interest loans Highway improvements and extension of rail line Copyright © 2005 South-Western. All rights reserved. Class Notes: Disney Goes to Paris

216 Class Notes: Disney Goes to ParisFrench intellectuals derided the Disney experience Criticisms not abated by Disney’s efforts to make the park more “European” Park areas and rides more attentive to European origins and sensibilities Copyright © 2005 South-Western. All rights reserved. Class Notes: Disney Goes to Paris

217 Class Notes: Disney Goes to ParisTroubles inside the park seemed to get worse after opening Guests complained about restaurants, queues, lack of friendly service Park was poorly maintained Dress code resulted in charges of violating French labor laws Difficulties reflect cultural mistakes and misunderstandings Copyright © 2005 South-Western. All rights reserved. Class Notes: Disney Goes to Paris

218 Class Notes: Disney Goes to ParisAlmost from the beginning, Euro Disney was in serious trouble Losses cost the park about $1 million per day New chief executive was hired and reorganization began Park is now known as Disneyland Paris Walt Disney Studios Park opened “second gate” to boost attendance Disney has added attractions, reduced ticket prices, and increased discounts and special events Copyright © 2005 South-Western. All rights reserved. Class Notes: Disney Goes to Paris

219 Class Notes: Disney Goes to ParisEuropean management has improved relations with contractors, local residents, guests, and employee groups Park began attracting larger crowds in 1999 Occupancy in park hotels has increased to 70 – 80 percent Local residents and politicians now concerned about the increasing growth in the area Copyright © 2005 South-Western. All rights reserved. Class Notes: Disney Goes to Paris

220 Disney Goes to Hong KongHong Kong Disneyland slated to open in 2005 Deal was first announced in 1999 Park estimated to cost nearly $4 billion Disney putting up $300–400 million Hong Kong government backs remainder of project Disney will control the design, manage the park, and share in the revenue Copyright © 2005 South-Western. All rights reserved. Class Notes: Disney Goes to Hong Kong

221 Disney Goes to Hong KongTwo potential sites: Hong Kong and Shanghai Hong Kong offered better deal and also offers: Better mixture of per capita income Western-style commercial infrastructure and culture Established tourist trade Copyright © 2005 South-Western. All rights reserved. Class Notes: Disney Goes to Hong Kong

222 Disney Goes to Hong KongPark will be smaller than in Tokyo or Paris Workforce estimated to be about 5,000 employees Park needs to attract only 5 or 6 million customers a year to break even Guests are likely to come from Hong Kong, China, and other Asian countries Design is “original Disneyland” with no unique Chinese touches beyond cuisine Copyright © 2005 South-Western. All rights reserved. Class Notes: Disney Goes to Hong Kong

224 The Meaning of DiversityDimensions of diversity: Social identities: personal characteristics such as race, gender, nationality, sexual orientation, age, disability that trigger others to treat people as members of a group rather than as individuals Additional personal characteristics: marital status, family background, educational level, etc. Organizational role: position, years of service, career employee or temporary worker, executive or hourly employee, etc. Class Note: Managing Cultural Diversity Copyright © 2005 South-Western. All rights reserved.

225 The Meaning of Diversity (cont’d)Cultural diversity: Refers to the primary dimensions of diversity and the opportunities and challenges posed to work teams and departments that represent people from many groups Class Note: Managing Cultural Diversity Copyright © 2005 South-Western. All rights reserved.

226 The Meaning of Diversity (cont’d)Diversity within nations and around the world Diversity is not merely a U.S. preoccupation Most nations have cultural differences in ethnicity, language, gender, or class Sources of conflict around the world Race (U.S.) Ethnic and religious differences (Europe) Differences in national origin and immigration (Asia) Issues of indigenous peoples and class differences (Latin America) Class Note: Managing Cultural Diversity Copyright © 2005 South-Western. All rights reserved.

227 The Meaning of Diversity (cont’d)Business case for diversity Research suggests managers cannot expect that attracting and maintaining a diverse workforce will be easy or natural Diversity does not automatically translate into positive group or organizational performance Gains from greater diversity arise when training in communication and teamwork enable managers to learn from diversity Class Note: Managing Cultural Diversity Copyright © 2005 South-Western. All rights reserved.

228 The Business Case for Diversity“I see three main points to make the business case for diversity: A talent shortage that requires us to seek out and use the full capabilities of all our employees. The need to be like our customers, including the need to understand and communicate with them in terms that reflect their concerns. Diverse teams produce better results. This last point is not as easy to sell as the first two—especially to engineers who want data. What I need is the data, evidence that diverse groups do better.” Class Note: Managing Cultural Diversity Source: Lew Platt, [former] CEO, Hewlett-Packard. Informal comments to Diversity Research Network, Stanford Business School, March 18, Reproduced with permission of Hewlett-Packard Company. Copyright © 2005 South-Western. All rights reserved. Figure 11.1

229 The Meaning of Diversity (cont’d)What managers need to understand and do Understand how diversity affects group and organizational processes Understand how to manage these processes to produce positive results for stakeholders Be attentive to key stakeholders at three levels Provide equal opportunity and fair treatment to everyone at societal level Offer fair treatment and equal opportunity at organizational level Translate diversity into positive organizational outcomes Class Note: Managing Cultural Diversity Copyright © 2005 South-Western. All rights reserved.

230 U.S. Societal and Policy ContextCivil rights movement gave rise to policies of equal opportunity and affirmative action These policies continue to reflect American commitment to equality as a fundamental belief Some people believe much progress has been made, while others believe problems of racial division persist Class Note: Managing Cultural Diversity Copyright © 2005 South-Western. All rights reserved.

231 U.S. Societal and Policy Context (cont’d)Government policies In 1964, U.S. federal government enacted comprehensive law to provide equal opportunity to all people regardless of race, color, religion, sex, or national origin Other protected categories later added: age and disability Executive Order of 1965 requires all firms doing business with the government to apply affirmative action in hiring and promoting minorities and women Class Note: Managing Cultural Diversity Copyright © 2005 South-Western. All rights reserved.

232 U.S. Societal and Policy Context (cont’d)Government policies (cont’d) Affirmative action does not require hiring unqualified individuals or choosing less-qualified members of a protected group over others who are more qualified Government policies prompted positive effects in protected groups from the late 1960s through the 1970s Significant challenges remain for black men, black women, Hispanics, and Asians Class Note: Managing Cultural Diversity Copyright © 2005 South-Western. All rights reserved.

233 Organizational ProcessesStrategic design perspective Focus is on aligning corporate policies to government regulations and other corporate requirements Political perspective Attention is on underlying tensions and conflicts of interest that affect how diversity programs are perceived and carried out Cultural perspective Important issues are how employees live out their approach to diversity and the norms they develop Class Note: Managing Cultural Diversity Copyright © 2005 South-Western. All rights reserved.

234 Typical Elements in a Corporate Diversity ProgramA formal position or department dedicated to diversity management Training programs designed and conducted by employees Diversity advisory councils chaired by the CEO Mentoring programs open to all high-potential employees Participation in benchmarking studies of diversity programs in other companies Class Note: Managing Cultural Diversity Source: Survey of Fortune 500 companies reported by the Society of Human Resource Management in Mosaics 1(1), March 1995, p. 5. Copyright © 2005 South-Western. All rights reserved. Figure 11.2a

235 Typical Elements in a Corporate Diversity Program (cont’d)Provision of electronic or printed diversity calendars and schedule of company-sponsored diversity events Formal employee networks, support groups, and task forces with direct access to top management that identify issues, explore solutions, and support implementation Awareness workshops with follow-up meetings and results Global video conferencing supported by a culturally sensitive manual Class Note: Managing Cultural Diversity Source: Survey of Fortune 500 companies reported by the Society of Human Resource Management in Mosaics 1(1), March 1995, p. 5. Copyright © 2005 South-Western. All rights reserved. Figure 11.2b

236 Organizational Processes (cont’d)Three places in the organization where complexities of diversity can be seen from political and cultural perspective: Top leadership Grassroots employee advocacy groups Bystander awareness Class Note: Managing Cultural Diversity Copyright © 2005 South-Western. All rights reserved.

237 Organizational Processes (cont’d)Bystander training A bystander is anyone who witnesses an offensive or inappropriate remark or behavior and faces the choice of what to do about it Bystander training recognizes that everyday issues which set the tone for diversity often pop up suddenly and require quick and informal intervention Class Note: Managing Cultural Diversity Copyright © 2005 South-Western. All rights reserved.

238 Situating Diversity Within Multiple Organizational ProcessesFigure 11.4 Class Note: Managing Cultural Diversity Source: From Maureen Scully and Amy Segal, “Passion with an Umbrella: Grassroots Activists Inside Organizations.” Paper presented at the Academy of Management Meetings, Dallas, Texas, August Reprinted by permission. Copyright © 2005 South-Western. All rights reserved.

241 Bystander Awareness Bystander training focuses not on perpetrators, victims, or managers but on those who witness offensive or unprofessional behavior Lack of support from bystanders often worsens strains in work groups Training can help bystanders turn around tense situations and reinforce shared commitment to inclusivity and respect Bystander Awareness Copyright © 2005 South-Western. All rights reserved.

242 Bystander Awareness (cont’d)Bystander inaction can be reduced by: Practicing interventions in a safe space Thinking through various scenarios in advance Expanding menu of possible responses Understanding cultural differences Learning from others’ experiments Taking personal ownership of a situation Becoming self-aware and understanding norms Discussing options with others and making bystander action open, expected, and legitimate Bystander Awareness Copyright © 2005 South-Western. All rights reserved.

243 Bystander Awareness (cont’d)Speaking on behalf of another requires: Tactfulness Willingness to take risks Awareness of one’s own power or privilege Bystander Awareness Copyright © 2005 South-Western. All rights reserved.

244 Some Tactics for Bystanders: Ideas from Workshop ParticipantsInclusion: Invite someone into the conversation Solicit the opinions of people who have been quiet Be an ally for someone taking a risk Be gracious, help others save face Discovery: Ask questions Give people a chance to clarify Check assumptions Consider the big picture, the broader context Bystander Awareness Source: Reprinted by permission of Harvard Business Review. From “Making Differences Matter: A New Paradigm for Managing Diversity” by David A. Thomas and Robin J. Ely, Sept/Oct Copyright © by the President and Fellows of Harvard College. All rights reserved. Copyright © 2005 South-Western. All rights reserved. Figure 11.6a

245 Some Tactics for Bystanders (cont’d)Cooling things down: Ask for a break Use humor (but with care) Suggest next steps, another meeting, off-line conversations Heating things up: Surface emotions Say how the situation makes you feel Point to the “unspeakable” issues that may be lurking Body language/ signaling: Stand up Turn away Raise your hand Bang the table Say “ouch” Laugh Leave the room Bystander Awareness Source: Reprinted by permission of Harvard Business Review. From “Making Differences Matter: A New Paradigm for Managing Diversity” by David A. Thomas and Robin J. Ely, Sept/Oct Copyright © by the President and Fellows of Harvard College. All rights reserved. Copyright © 2005 South-Western. All rights reserved. Figure 11.6b

246 Three Paradigms for Managing DiversityBystander Awareness Copyright © 2005 South-Western. All rights reserved. Source: David Thomas and Robin Ely Making Differences Matter. Harvard Business Review (September–October). Figure 11.7

247 Eight Scenarios of Bystander ActionsScenario Some Dimensions of Name Diversity Addressed 1. Introducing the Invisible Colleague gender 2. Is It Really About Race? race 3. The Awkward Invitation sexual orientation 4. Is It the Nature of the Project? nationality, language 5. Counting on a Colleague invisible disability 6. I Was Just Trying to Be Sensitive nationality, language, gender 7. You Just Weren’t Listening nationality, language, status 8. The Stapler class/status/hierarchical level Exercises: Bystander Scenarios: What Would You Do? Copyright © 2005 South-Western. All rights reserved. Figure 11.8

249 Negotiation as a Form of Conflict ManagementConflict is ubiquitous and negotiation is only one of many ways to deal with difference Ways of resolving conflict: Forcing behavior Smoothing Avoidance Negotiating Third-party assistance Copyright © 2005 South-Western. All rights reserved. Class Note: Negotiation and Conflict Resolution

250 Dealmaking: Building Blocks of NegotiationBuilding blocks of dealmaking process are: Parties Issues Interests Dealmaking can resemble market transaction where parties pursue individual gain or can be one where parties pursue mutual gain Copyright © 2005 South-Western. All rights reserved. Class Note: Negotiation and Conflict Resolution

251 Dealmaking (cont’d) Negotiation takes place between and among partiesParties can be people negotiating on their own behalf or be agents acting on behalf of others Negotiations among parties affected by: Relationships between parties Number of parties Negotiator characteristics Organization context Copyright © 2005 South-Western. All rights reserved. Class Note: Negotiation and Conflict Resolution

252 Dealmaking (cont’d) Issues are the matters over which parties disagree and seek to reach agreement on Most common distinction people make about issues concerns number of them Issues can differ in terms of specificity and clarity Issues are not etched in stone; issues can change during negotiation Copyright © 2005 South-Western. All rights reserved. Class Note: Negotiation and Conflict Resolution

253 Dealmaking (cont’d) Interests are what parties seek to advance in negotiations Substantive interests relate directly to what’s being negotiated Negotiators should be as specific as possible about articulating interests Parties value interests and issues differently A major challenge in negotiating is talking about interests Copyright © 2005 South-Western. All rights reserved. Class Note: Negotiation and Conflict Resolution

254 Dealmaking (cont’d) Bargaining power is the capacity to achieve agreement on one’s own terms Sources of power: Ability to reward or coerce another party to make particular concessions “Best alternative to a negotiated agreement” (BATNA) Bargaining power also derives from how negotiators use the power and influence they have Copyright © 2005 South-Western. All rights reserved. Class Note: Negotiation and Conflict Resolution

255 Dealmaking (cont’d) Dealmaking is the means by which parties work out their differences over issues and pursue their interests Two basic processes of negotiating: Distributive negotiations—parties view each other as adversaries Integrative or mutual gains negotiations—parties focus on interests, not positions, and search for options that meet interests Copyright © 2005 South-Western. All rights reserved. Class Note: Negotiation and Conflict Resolution

256 Dealmaking (cont’d) Identifying mutual gains requires open sharing of interests, then searching for agreements that meet both parties’ needs Ways to meet mutual needs: Finding new resources Logrolling Nonspecific compensation Cost cutting Bridging Copyright © 2005 South-Western. All rights reserved. Class Note: Negotiation and Conflict Resolution

257 Dealmaking (cont’d) Negotiator’s dilemma:Pursuing distributive negotiation tactics makes it unlikely we will move to a process of option creation that leads to mutual gain Pursuing integrative negotiation tactics means we still face the issue of how to distribute the new value created Copyright © 2005 South-Western. All rights reserved. Class Note: Negotiation and Conflict Resolution

258 Dealmaking (cont’d) Shadow negotiations:Where parties position themselves and each other for the negotiation Where negotiators work out the personal dynamic of their exchange Where negotiators vie for control over who sets the terms of the discussion or whose interests will be heard Copyright © 2005 South-Western. All rights reserved. Class Note: Negotiation and Conflict Resolution

259 Assisted NegotiationsAssisted negotiation is more akin to mediation Mediators assist negotiators by helping parties manage dilemmas and difficulties Mediators can: Cool things down and keep parties focused on issues Explore for areas of flexibility without causing a party to make a public commitment to a deal Create options that the two parties have not seen Help parties explore consequences of no agreement Copyright © 2005 South-Western. All rights reserved. Class Note: Negotiation and Conflict Resolution

260 Assisted Negotiations (cont’d)Challenges of assisted negotiation: Tendency to want to tell people what to do rather than assist them to resolve their own differences The question of neutrality; absolute neutrality is virtually impossible in organizations When parties reach an impasse in negotiations, it’s often difficult to help them come to an agreement Copyright © 2005 South-Western. All rights reserved. Class Note: Negotiation and Conflict Resolution

261 Costs and Customers Relevant to Lakeside-Tonicron Joint VentureCopyright © 2005 South-Western. All rights reserved. The Press: Dealcrafting: The Substance of Three-Dimensional Negotiations Table 12.1

263 Focusing on Differences as the Material for Joint GainsCost/ revenue structure Capability Interest and priority Agenda management Forecast or belief about the future Attitudes toward risk Attitudes toward time Tax status Accounting treatment and reporting sensitivity The Press: Dealcrafting: The Substance of Three-Dimensional Negotiations Copyright © 2005 South-Western. All rights reserved.

264 Breakthrough Bargaining StrategiesPower moves Offer incentives Put a price on the status quo Enlist support Process moves Seed ideas early Reframe the process Build consensus Appreciative moves Help others save face Keep the dialogue going Solicit new perspectives Copyright © 2005 South-Western. All rights reserved. The Press: Breakthrough Bargaining

265 Change From Within: Roads to Successful Issue SellingModule 13 Change From Within: Roads to Successful Issue Selling PowerPoint Presentation by Charlie Cook Copyright © 2005 South-Western. All rights reserved.

266 Class Note: Issue Selling From WithinIssue selling: attempts by lower level managers to influence higher level members of organization Issue selling important to both organizations and managers today Top managers are challenged to cope with complex business world Issue selling allows many minds to contribute in organization’s future These minds may be closer to problem areas and thus offer important perspectives Class Note: Issue Selling From Within Copyright © 2005 South-Western. All rights reserved.

267 The Choice to Sell Issues in OrganizationsUnderstanding managers’ choice processes in deciding to sell issues People more willing to sell issues in contexts where they perceive management will listen and where context is experienced as supportive Context may enhance or inhibit issue selling Sellers worry about damaging their reputations Top management plays important role in issue selling because they set context for subordinates Class Note: Issue Selling From Within Copyright © 2005 South-Western. All rights reserved.

268 The Choice to Sell Issues in Organizations (cont’d)Tactical choices in issue-selling process: Bundling—tying new issues to existing ones Framing—ways an issue is described and presented Language—choice of language used to describe issue Involvement—pushing an issue alone or involving others in the selling effort Approach—formal or informal, public or private appeal Timing—raising issues at the right time Doing one’s homework—becoming an expert on the issue and assessing political situation Class Note: Issue Selling From Within Copyright © 2005 South-Western. All rights reserved.

270 The Challenge of Charged IssuesCharged issues are tough, problematic, sensitive issues that sellers may be reluctant to raise Examples of charged issues: Gender equity Treatment of employees with AIDS Treatment of racial minorities Treatment of the natural environment Organizations often try to defuse charged issues from the top Class Note: Issue Selling From Within Copyright © 2005 South-Western. All rights reserved.

272 The Misunderstood Middle ManagerMiddle management translates strategies into actions by: Defining tactics and developing budgets for achieving a strategy Monitoring the performance of individuals and subunits Taking corrective action when behavior falls outside expectations The Press: Dinosaurs or Dynamos? Recognizing Middle Management’s Strategic Role Copyright © 2005 South-Western. All rights reserved.

273 Misunderstood Middle Manager (cont’d)In the “new” organization, senior managers rely less and less on middle managers Middle management’s operating responsibilities have withered, but strategic roles still play a crucial factor in organizational success Involvement of middle management in formulating strategic decisions can result in higher financial performance The Press: Dinosaurs or Dynamos? Recognizing Middle Management’s Strategic Role Copyright © 2005 South-Western. All rights reserved.

274 Middle Management Strategic RolesCore and dynamic capabilities develop through long association with a company such as that experienced by middle managers Roles of middle managers include: Championing strategic alternatives Synthesizing information Facilitating adaptability Implementing deliberate strategy The Press: Dinosaurs or Dynamos? Recognizing Middle Management’s Strategic Role Copyright © 2005 South-Western. All rights reserved.

276 Realizing Middle Management’s Strategic ValueSenior managers should: Recognize the link between middle management, core capability, and competitive advantage Identify middle managers with appropriate skills, experiences, and potential to thrive in the organization Develop a better understanding of desired roles within the organization Redesign the organization to leverage knowledge and skills of selected set of middle managers Renegotiate the “psychological contract” by committing to the ongoing involvement of middle management in the strategy-making process The Press: Dinosaurs or Dynamos? Recognizing Middle Management’s Strategic Role Copyright © 2005 South-Western. All rights reserved. Figure13.1

278 Leadership in OrganizationsCore assumptions of leadership framework: Leadership is distributed Leadership is personal and developmental Leadership is a process to create change Leadership develops over time Copyright © 2005 South-Western. All rights reserved. Class Note: Leadership in an Age of Uncertainty

279 The Four Capabilities FrameworkFour key leadership capabilities are: Sensemaking Relating Visioning Inventing Copyright © 2005 South-Western. All rights reserved. Class Note: Leadership in an Age of Uncertainty

280 Class Note: Leadership in an Age of UncertaintyLeadership Framework Transparency 14.1 Copyright © 2005 South-Western. All rights reserved. Class Note: Leadership in an Age of Uncertainty Figure 14.1

281 The Four Capabilities Framework (cont’d)Sensemaking defined Making sense of the world around us Coming to understand the context in which you are operating Creating a map that represents the current situation of the group or organization Copyright © 2005 South-Western. All rights reserved. Class Note: Leadership in an Age of Uncertainty

282 The Four Capabilities Framework (cont’d)Tips for effective sensemaking: Seek many types and sources of data Involve others in your sensemaking Avoid existing frameworks; let the appropriate map emerge Move beyond stereotypes; push for what’s behind the labels Learn from small experiments Use images, metaphors, or stories to illustrate critical elements of your map Copyright © 2005 South-Western. All rights reserved. Class Note: Leadership in an Age of Uncertainty

283 The Four Capabilities Framework (cont’d)Relating defined Centers on the leader’s ability to engage in inquiry, advocacy, and connecting Inquiry—ability to listen and understand what others are thinking and feeling Advocacy—being clear about your own point of view and trying to influence others of its merits Connecting—cultivating a set of people who help each other to accomplish their goals Copyright © 2005 South-Western. All rights reserved. Class Note: Leadership in an Age of Uncertainty

284 The Four Capabilities Framework (cont’d)Tips for effective relating: Understand the perspective of others and withhold judgment while listening to others Encourage others to voice their opinions Be clear about what your stand is and how you got there Think about how others might react to your idea and how you can best explain it to them Think about your connections—do you feel good about the nature of your relationships? Copyright © 2005 South-Western. All rights reserved. Class Note: Leadership in an Age of Uncertainty

285 The Four Capabilities Framework (cont’d)Visioning defined Creating a compelling vision around something that the leader and others care about, linking it to key values in the culture, and communicating it in a way that motivates others Visions provide people with a sense of meaning about their work Visions are most compelling when they come from a sincere belief in the cause Copyright © 2005 South-Western. All rights reserved. Class Note: Leadership in an Age of Uncertainty

286 The Four Capabilities Framework (cont’d)Tips for effective visioning: Develop a vision about something that excites you or that you think is important Frame the vision with an ideological goal Use stories, metaphors, and analogies to paint a vivid picture of what the vision will accomplish Practice creating a vision in many arenas Enable others by pointing out that their skills and capabilities are needed to realize the vision Embody the key values and ideas of the vision Copyright © 2005 South-Western. All rights reserved. Class Note: Leadership in an Age of Uncertainty

287 The Four Capabilities Framework (cont’d)Inventing defined Changing the way that people work together to improve what is going on, to realize the vision, or to overcome obstacles Can also be seen as a whole new way of approaching a task Goes hand-in-hand with sensemaking Copyright © 2005 South-Western. All rights reserved. Class Note: Leadership in an Age of Uncertainty

288 The Four Capabilities Framework (cont’d)Tips for effective inventing: Focus on improving the ways that people work together in your team and organization When a new task or change effort emerges, think through how it will get done Play with new and different ways of organizing work Blend sensemaking and inventing Copyright © 2005 South-Western. All rights reserved. Class Note: Leadership in an Age of Uncertainty

289 Class Note: Leadership in an Age of UncertaintyThe Change Signature The unique leadership behavior of individuals that is based on experience and acquired skills and which serves to guide choices about: Allocating time Establishing priorities and goals Commitment to fight for something The change signature is made up of a credo and the characteristic way in which the leader creates change Copyright © 2005 South-Western. All rights reserved. Class Note: Leadership in an Age of Uncertainty

291 Four Parts of the Self (cont’d)Step 1: Past Self What values did your family stress? Did you adopt those values or fight against them? Who were your heroes? What values did you take from them? How did you gain recognition and self esteem? What skills did you begin to develop in your formative years? What values, skills, and patterns of leading are part of your past self? Copyright © 2005 South-Western. All rights reserved. Exercise: Your Change Signature

292 Four Parts of the Self (cont’d)Step 2: Developed Self What best describes the values and skills that you have honed? What have conflicts shown you about what is really important to you? Are you best known as an analytic person, a problem solver, a visionary, or a people person? What leadership challenges have you taken on? What have you learned about yourself as a leader? How would others describe your change signature? Copyright © 2005 South-Western. All rights reserved. Exercise: Your Change Signature

293 Four Parts of the Self (cont’d)Step 3: Underdeveloped Self Are there any areas of yourself that you feel you want to begin to develop? What kind of plan can you put together to move aspects of yourself from the underdeveloped to the developed side of the diamond? Copyright © 2005 South-Western. All rights reserved. Exercise: Your Change Signature

294 Four Parts of the Self (cont’d)Step 4: Future Self What aspects of others’ leadership would you like to incorporate into your own? If you think about the end of your career, what would you want people to say about you? If a head hunter called a colleague to ask about what kind of leader you are, what do you wish they would say? If you think about the things you would like to do and the kind of person you would like to be, what would you need to do to be able to get there? Copyright © 2005 South-Western. All rights reserved. Exercise: Your Change Signature

Module 1 The “New” Organization: Taking Action in an Era of Organizational Transformation PowerPoint Presentation by Charlie Cook Copyright © 2005 South-Western.

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