Professional Documents
Culture Documents
If there is one quality that distinguishes a good manager from a poor one, it is
decisiveness and strong communication. A person in managerial position who
is poor in decision making is fit to be called only an administrator and not a
manager.
The theory about the decision making process is an interesting subject. Every
manager is in fact some kind of decision maker and usually the performance is
formed by (the results of) the choices made (Vroom, 1973).
4) seeking opinions and alternative view points from "people who know" and
"people who matter".
d. Identifying Uncertainties
Understanding of uncertainties is the key to the decision analysis process.
.
e. Generating Alternatives
It is vital to identify what cannot be changed, or project constraints for making the particular
decision analysis.
Making Decisions in
Organizations
Managerial Employee
High High
Control Empowerment
Centralized Decentralized
Decision Decision
Making Making
Employee Managerial
Low Low
Empowerment Control
Problem solving approach
• Information is key to managerial decision
making. Therefore collect information
through effective communication.
• Optimizing decision making process
• Quantitative techniques for decision
making
• Decision tree
• Consistency in decision making, problem
solving skills
What Is An Organization?
An organization is a group of individuals
who work together toward common goals.
MANAGEMENT
EFFECTIVENESS
Long term measure of how well an organization
achieves its objectives
EFFICIENCY
Short term measure of how well an organization
uses it resources
GOAL
A desired future states that contributes to the
fulfillment of the organization's mission
Simple Complex
(1 person) (1,000’s of persons)
Owner
President
President
President
Project A
Manager
Project B
Manager
Project C
Manager
Flat Organizations
Tall Organizations
Figure 7.10
7-22
Tall Versus Flat Organizations
Organizational Structure
There is no permanent organization chart for
the world. . . . It is of supreme importance
to be ready at all times to take advantage
of new opportunities.
8-24
Simple, International Division
CEO
International
Production Marketing Finance
Division
CEO
North
European Asian
American
operations operations
operations
CEO
North
Europe Asia
America
CEO
Return
Responsibility
and Authority
Job Design
Adam Smith’s Example
of Job Specialization
Making a pin (nail) requires 18
tasks
1 worker doing all 18 tasks might make
20 pins (nails) a day.
With specialization:
20 workers make 100,000 pins a day.
1 worker = 5,000 pins
20 pins vs. 5,000 pins per worker
Alternatives to Specialization
• Job Rotation
– Systematically moving employees from one job to
another in an attempt to reduce employee boredom.
• Job Enlargement
– An increase in the total number of tasks workers
perform.
• Job Enrichment
– Increasing both the number of tasks the worker does
and the control the worker has over the job.
Job Design
Job design refers to how organizations define and structure jobs
The objective of job design is to develop jobs that meet the requirements of
the organization and its technology and that satisfy the jobholder’s
personal and individual requirements.
Job Designing
• Job Design
– The determination of an individual’s work-
related responsibilities.
• Job Specialization (Division of Labor)
– The degree to which the overall task of the
organization is broken down and divided into
smaller component parts.
6A-38
Organizational
Mental and Geographic
Time of day; rationale for Method of
physical locale of the
Tasks to be time of the job; object- performance
characteristics organization;
performed occurrence in ives and mot- and
of the location of
the work flow ivation of the motivation
work force work areas
worker
Ultimate
Job
Structure
Job Design Strategies
• Job simplification - breaks work down into its
simplest form and standardizes each task.
• Job enlargement (horizontal job loading) - adds
more tasks to a job to broaden its scope.
• Job rotation - cross-trains workers so they can
move from one job in a company to others,
giving them a greater number and variety of
tasks to perform. Often used with a skill-based
pay system.
Job Design Strategies
(continued)
Enriched
Job
Job Design Strategies
(continued)
Increased Performance
Internal resources are allocated in the most efficient and effective manner to
generate the maximum return for capital investment for the organization.
Leads to increased job satisfaction and thereby results in low employee turnover
and high productivity.
Job Design Challenge -
Motivate Workers
• Empowerment
• Job design
• Rewards and compensation
• Feedback
Four Vital Tasks of a Leader
1. Hire the right employees and
constantly improve their skills.
2. Build an organizational culture and
structure that enable the company to
reach its potential.
3. Motivate workers to higher levels of
performance.
4. Plan for “passing the torch” to the next
generation of leadership.
Human Resource Management
However beautiful the strategy, you should occasionally look at the results.
Winston Churchill
If GE's strategy of investment in China is wrong, it represents a loss of a billion dollars, perhaps a couple of billion dollars. If it is right, it
is the future of this company for the next century.
Jack Welch
Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.
Sun Tzu
All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved.
Sun Tzu
You have to be fast on your feet and adaptive or else a strategy is useless.
Charles de Gaulle
My whole career strategy has been to build a base so that I could take the roles I want to play. I'd hate to think that a shorter part might not
be available because I was worried about my billing.
Jack Nicholson
I think we have to notice that the business processes we use right now for thinking and planning and budgeting and strategy are all
delivered on very tight agendas.
Margaret J. Wheatley
Leadership is a potent combination of strategy and character. But if you must be without one, be without the strategy.
Norman Schwarzkopf
The first opens the gate and walks through, allowing the
flock to follow. This shepherd leads from the front.
• " You don't get paid for the hour. You get paid for the
value you bring to the hour."
Motivation is the
activation or
energization of goal-
oriented behavior.
Types of Motivation
Intrinsic motivation comes from rewards inherent
to a task or activity itself - the enjoyment of reading,
solving a puzzle or the love of playing chess, etc.
• Control
– Planning
– Organizing
– Leading
Control Function in
Management
Ensures adjustment or
conformity to objectives
Ensures adjustment or
conformity to specifications
Control
Regulates activities
Regulates behavior
Control’s Feedback Loop
Planning
Feedback Changes
Control in
Organizing
Basic Elements in
Control Process
Establish standards
Establish standards
• Specification starts at the top of the
organization and involves every
level of employee
• Standards – performance target
• Involving employees in setting
standards
• Commits the employees to
achieving the standards
• Select appropriate standards
Establishing Standards
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Strategic Controls
Tactical Controls
Operational Controls
(Narrow) (Broad)
Scope
Scope of Control
Strategic Control
Operational Control:
Controlling the day to day activities.
Types of Organizational Controls:
Control can focus on events before, during, or after a process. For example, a
car dealer can focus on activities before, during, or after sales of new cars.
Careful inspection of new cars and cautious selection of sales employees are
ways to ensure high quality or profitable sales even before those sales take
place.
Monitoring how salespeople act with customers is a control during the sales task.
Counting the number of new cars sold during the month and telephoning buyers
about their satisfaction with sales transactions are controls after sales have
occurred.
Project management control systems are the modern tools for managing project
scope, cost and schedule. They are based on carefully defined process and
document controls, metrics, performance indicators and forecasting with
capability to reveal trends toward cost overrun and/or schedule slippage.
Identifying those trends early makes them more amenable to successful
management.
Change management has been developed over a period of time and one of the
models that have played an influence in change management is the ADKAR model.
ADKAR was a model developed by Prosci. In this model, there are five specific
stages that must be realized in order for an organization or an individual to
successfully change. They include:
Desire - Either the individual or organizational members must have the motivation
and desire to participate in the called for change or changes.
Ability - Every individual and organization that truly wants to change must
implement new skills and behaviors to make the necessary changes happen.
Assignment Questions:
1. Should Wollen recommend Lewis for the U.K. position? Is Abbott correct
in saying that Wollen has made this too much of a personal issue?
2. If she does recommend him, are there other steps she should take to
ensure his success?
3. If she does not recommend him, are there other steps she should take on
his behalf or within the firm more generally?
Sunlight Electric – Clean Power
http://www.sunlightelectric.com/index.htm
http://www.bellaenergy.com/
Capture the Sun