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BA 101

I.

MANAGERS TERRAIN
RC: 1-6
MANAGERS
Who?
org members who tells others what to do and how to do it
coordinates & oversees the work of other people so goals can be met
Why are they important?
organizations need their skills/abilities in uncertain, complex, & chaotic times
they get things done
they matter bc the relationship bet. employees ang managers influence productivity
Structured Org way of classifying managers?
First Line:
manage work of nonmanagerial employees, typically in production; supervisors,
shift/district/department/office managers
Middle:
manage work of first line managers, regional manager, project leader, store/division
manager
Top:
makes org-wide decisions, establishes plans/goals of entire org, executive VP, President,
Managing director, chief operating officer, CEO
What is an ORGANIZATION?
Has a distinct purpose, expressed thru goals
Is composed of people
Has deliberate structure (may be open/flexible or traditional) where mems do their work
MANAGEMENT
coordinating & overseeing the work of others so the activities are done
efficiently & effectively
EFFICIENCY/means:
MAX output from MIN input; doing things right- not wasting resources
EFFECTIVENESS/end:
completing activities so goals are met
FUNCTIONS (not always in order) by
Henri Fayol
PLANNING:
set goals, establish strategies, develop plans for activities
ORGANIZING:
determine what tasks, who will do them, decisions
LEADING:
motivate mems, resolve conflicts, deal w/ behaviors, choose communication
channel
CONTROLLING:
evaluation whether things are going as planned, compare performance
with set goals
MGRL ROLES/CONTEMPORARY MODEL OF MANAGING by
Henry Mintzberg
involves
REFLECTION/THINKING
&
ACTION/DOING
INTERPERSONAL ROLES
:
figurehead, leader, liaison
INFORMATIONAL: monitor, disseminator, spokesperson
DECISIONAL: entrepreneur, disturbance handler, resource allocator, negotiator
managers can influence actions by: managing the 1 actions 2 people 3 info
SKILLS/level of importance by
Katz
TECHNICAL: job specific knowledge & techniques, First Line Managers
HUMAN: work well w people, individually/group, Middle Managers
CONCEPTUAL: conceptualize abstract/complex situations, Top Managers
WHY STUDY MGMT?
1) Universality of it 2) Reality of work 3) Rewards

SUSTAINABILITY:
firms ability to achieve goals and up SH value by integrating social/econ/envi
opportunities to its strategies
How much difference does a manager make in firm performance? (success/failure)
OMNIPOTENT VIEW:
directly responsible
SYMBOLIC VIEW:
influenced/constrained by external forces
EXTERNAL ENVIRONMENT (External Constraint)
outside forces/factors that affect performance;
Econ, Demographic, Pol/Legal, Sociocultural, Tech, Global
How it affects managers?
JOBS/EMPLOYMENT: availability, how jobs created and managed -> w/c affects POLC
ENVI UNCERTAINTY: degree of
change
(high: DYNAMIC; music industry vs low: STABLE;
no competitors & tech change) &
complexity
(complex: lots of compet, customers,
suppliers vs simple; acquiring compet) in orgs envi

STAKEHOLDER RELATIONSHIPS:
Stakeholders:
constituencies (internal/external) in orgs
envi that are affected by orgs actions, in turn can influence the org. SB: coffee farmers,
employees

ORG CULTURE (Internal Constraint)


shared values, principles, traditions that influence the way mems act how things are done here,
what is good employee behavior, what does it takes to get ahead

STRONG CULTURE:
key values are deeply held and widely shared; high loyalty and performance; tho
this might prevent from trying new approaches

Where does it come from?:


PHILO of FOUNDERS> SELECTION CRITERIA > TOP MGMT/SOCIALIZATION > ORG CULTURE
How to maintain?
certain practices; give bonus to subordinates
How to help employees adapt?
Thru socialization; SB training
How employees learn culture?
Stories, Rituals, Material Symbols, Language
How does culture affect managers?
how managers POLC
Workplace Spirituality:
culture that promote a sense of purpose thru meaningful work
Spiritual Org: sense of purpose, indiv devt, trust/openness, employee empowerment, &
expression. BUT: is spirituality and profit compatible?

What is PAROCHIALISM
viewing the world solely thru own eyes/perspective; dont recognize that others have differenct ways
of living/working; ours is better than theirs, sign: Monolingualism (USA)
Types of Global Attitudes?
ETHNOCENTRIC ATTITUDE: best work practices are from
home
country; dont trust foreign
POLYCENTRIC: employees in
host
country knows best; let those employees figure it out
GEOCENTRIC: world oriented view, best approaces/people are from around the globe
What shapes the Global Trade?
REGIONAL TRADING ALLIANCES: european union, NAFTA, ASEAN, SAARC
GLOBAL TRADE MECHANISMS: world trade org, IMF, OECD
Different types of International Orgs?
MULTINATIONAL CORP: international firm that operates in many contries
GLOBAL COMPANY: ethnocentric att, home country manages
MULTIDOMESTIC CORP: polycentric attitude, leave decisions to local
TRANSITIONAL/BORDERLESS ORG: geocentric att
How do orgs go international?
GLOBAL (OUT)SOURCING: buy
cheapest
materials/labor from wherever; tho its risky
EXPORTING then IMPORTING: minimal risk, so small business often use this
LICENSING/FRANCHISING: former: manufacturers, latter: service
STRATEGIC ALLIANCE: partnership to share resources/knowledge to develop products
Joint Venture: partners form separate independent org for some purpose
FOREIGN SUBSIDIARY: invest in other country as separate independent office
Challenges in managing in a global environment?
POL/LEGAL ENVI: laws that affect their business; even if not risky, still know the differences
ECON ENVI: 1) Free Market (private sector owns resources) 2) Planned Econ (centralized govt);
inflation, exchange rates, tax policies
CULTURAL ENVI: mexican employees- fiesta
Org Culture vs National Culture
according to studies, national culture?
WAYS TO ASSESS CULTURE:
1) GLOBAL FRAMEWORK/ GLOBE
a) Power Distance: how unequally shared power is
b) Uncertainty Avoidance: reliance on social norms to alleviate unpredictable events
c) Assertiveness: be tough, assertive, competitive
d) Humane Orientation: be fair, altruistic, generous caring and kid
e) Future Orientation: rewards planning, investing in future, (future oriented behavior)
f) Institutional Collectivism:
g) Gender Differentiation:
h) In Group Collectivism
i) Performance Orientation

2) 5 DIMENSIONS OF NATIONAL CULTURE by


Geert Hofstede

What are the challenges in doing global business?


TOO MUCH OPENNESS due to globalization then theres significant cultural differences
MANAGING A GLOBAL WORKFORCE
What do you need when managing a global workforce?
CULTURAL INTELLIGENCE/awareness/sensitivity: knowledge of culture as a concept, mindfulness,
behavioral skills
GLOBAL MINDSET: Intellectual capital, Psychological Capital, Social Capital

What is WORKPLACE DIVERSITY?


ways in which mems of an org differ
and
be similar to one another
Surface Level:
age, gender, race
Deep Level:
values, personality, work preferences
WHY is this IMPORTANT?
People Management:
better use talents, ^ team prob-solving, attract/retain diverse ppl
Org Performance:
reduced costs, ^ prob-solving ability, improved system flexibility

Strategic:
better understand marketplace, ^ sales, competitive adva, moral/ethical
TYPES:

Global Workforce Changes:


Total world population:
may reach peak
Aging Population
Challenges in managing diversity
Personal Bias
Bias:
tendency to prefer X,
Prejudice:
outcome of bias, preconceived belief/opinion toward a person/group
Stereotyping:
judging based on perception of group to wc she belongs
which leads to
discrimation
Glass Ceiling:
invisible barriers that separates women/minorities from top mgt positions
INITIATIVES
Mentoring:
experienced mem provides advice and guidance less experienced; provides
career devt and social support
Diversity Skills Training:
training to educate ppl about importance of diversity
Employee resource group:
consist of emps connected by some dimension of diversity
What is SOCIAL RESPONSIBILITY?
Social Obligation:
engage in social actions
to meet certain economic and legal responsibilities;
classical view
of maximizing profit as only purpose
Socioenonomic View:
responsibilities go beyond making profits, includes society welfare
Social Responsiveness:
to meet popular social need
Social Responsibility:
engages in social action bc
its the right thing to do, act for society
Green Management:
considers impact of org to environment
Legal Approach:
do whats required
Market Approach:
respond to envi preferences of customers
Stakeholder Approach:
meets demand of multiple stakeholders (emps, suppliers)

Activist Approach:
looks for ways to protect earth
Factors that determine ethical and unethical behaviour

Stages of Moral Devt

Individual Charac:
Values: basic convictions about what is right wrong
Ego Strength: measures strength of persons convictions;
Locus of Control: degree to which ppl believe they control their fate; internal or external
Structural Vars:
orgs structure can influence how emps behave
Org Culture:
Value-based judgment: orgs value guides emps in the way they do jobs
Issue Intensity:
Encouraging ethical behaviour
Code of Ethics:
formal statement of orgs value and ethical rule
Performance appraisal
Ethics training
Protective mechanisms
Whistleblowers:
those who raise ethical concerns even if risky
Social Entrepreneur:
person/org who tries to improve society using practical, innovative, sustainable
What are the two views on CHANGE PROCESS?
1. CALM WATERS METAPHOR:
Kurt Lewins 3-ste change process
a. unfreeze status quo, change to new state, refreeze to make change permanent
2. WHITE WATER RAPIDS METAPHOR:
What are the TYPES OF ORG CHANGE?
Org Changes:
things chaged in workplac

Change Agent:
someone sho assumes the managing of change process (manager/nonmgr)

Automation: machines do what ppl do


Computerization: sophisticated Info system
Organizational Devt (OD): change methods that focus on ppl and nature of interpersonal work
relationships; Survey Feedback, Sensitivity Training, Team Building, Intergroup Devt, Process
Consultation
Managing RESISTANCE to Change
WHY do ppl resist?
uncertainty, habit, concern over personal loss, belief that change is not good
HOW to reduce

Contemporary ISSUES in managing change


CHANGING ORG CULTURE
EMPLOYEE STRESS:
stress
is adverse reaction to excessive pressure; not always bad;
stressors
cause stress; Task Demands: factors related to emps job; Role Demands: pressures placed on
employee; Role Conflicts, Role Overload: expected to do without enough time, Role Ambiguity:
expectations arent clearly understood; Interpersonal Demands: pressures created by other emps;
Org Structure can also increase stress, Org Leadership: style of managers, Type A personality: time
urgency, competitive drive, dont accept leisure time; Type B: otherwise
Symptoms of stress: physical, psychological, behavioural
To reduce:
Creativity vs Innovation
Creativity:
ability to combine ideas in a unique way, make unsual associations
Innovation:
outcomes of creative process
Innovation Variables

II.

PLANING
RC: 7-9
What are the decisions that managers do?
TOP: about goals, where to locate facilities, new markets to get into
MIDDLE/FIRSTLINE: prod scheds, prod quality problems, pay raises, employee discipline
What are the steps in DECISION MAKING PROCESS?
1. Identify a problem
(
discrepancy bet. existing and desired condition)
: be careful to not confuse
problems with symptoms of the problem (decline sales symptom; poor marketing); SUBJECTIVE
2. Identify decision criteria:
eg Need new laptop;
memory, processor, display quality
3. Allocate weights to criteria:
10-1
4. Develop alternatives:
just list, dont evaluate yet
5. Analyze alternatives:
then evaluate using criteria in Step 2, then multiply the weights to get
weighted alternatives; skippable
6. Select alternative
7. Implement alternative:
*if long term decision, reassess envi for changes
8. Evaluate decision effectiveness
What are the 4 perspectives managers make decisions? (APPROACHES)
1. Rationality:
make logical & consistent choices to
maximize
value; rational decision: fully
objective/logical; problem: clear, has specific goal;
decisions are made in best interest of org
2. Bounded Rationality:
(more realistic than #1) make decisions rationally, but are bounded/limited by
their ability to process info. Rather than maximize, they
SATISFICE
(good enough); decision making

is also influenced by org culture, internal pol, power considerations &


ESCALATION OF
COMMITMENT
(increased commitment to prev decision even if theres evidence that its wrong)
3. Role of Intuition:
decide based on
experience, affect-initiated (emotions/feelings), cognitive-based
(skills/know/training), Subconscious mental processing, & Values/Ethics;
complements #1 & #2
4. Role of Evidence-Based mgt:
systematic use of best available evidence to improve mgmt practice;
ELEMENTS:
expertise/judgment, evaluated external evidence, stakeholders
opinions/preferences/values, relevant internal org factors
; Find the most important element
How can you CLASSIFY problems and decisions?
Structured Problems & Programmed Decisions
probs that are
straightforward, familiar,
and
defined
the decision is repetitive that can be handled thru routine approach
3 TYPES OF PROG. DECISIONS:
Procedure: series of sequential steps;
Rule:
explicit statement
what can/cannot be done
Policy:
guideline;
establishes general parameters
Unstructured Problems & NonProgrammed Decisions
problems that are
new/unusual,
info is
ambiguous/incomplete
the needed decisions are unique and nonrecurring, custom made solutions
Lower managers handle routine decisions, the higher up you go, the more complex decisions
What are the different decision making CONDITIONS? (182!!!)
Certainty:
outcome of every alternative and their likelihood is known
Risk:
estimate the probability of certain outcomes; use historical data/past experiences
Uncertainty:
you dont know outcomes or their probability; (maximax, maximin, minimax regret)

What are the different decision making STYLES


Linear-NonLinear Thinking Style Profile
Linear: rational/logical/analytical; use
external data/facts
& process these through
rational,
logical thinking
NonLinear: intuitive/creative/insightful; use
internal info (feelings/intuition)
& process these
through
internal insights, feelings, hunches
Decision Making Biases & Errors
HEURISTICS (rules of thumb) - useful but unreliable
Overconfidence Bias:
think you know more than you do/hold unrealistic positive view of
themselves and performance
Immediate Gratification Bias:
wants immediate rewards but avoid immediate costs;
decisions w/ quick payoffs are appealing for them
Anchoring Effect:
decision makers fixate on
initial
info, then dont adjust w/ subsequent info
Selective Perception Bias:
selectively organizes and interprets events based on their
biased perception; these influence the steps in decision making process
Confirmation Bias:
seeks out info that reaffirms their past choices and disregard those who
contradict them
Framing Bias:
selects/highlights certain aspects of situation while excluding others
Availability Bias:
remember events that are most
recent/vivid
Representation Bias:
assess likelihood of event based on how it resembles similar event
Randomness Bias:
creates meaning out of random events
Sunk Costs Error:
occurs when forgets that current choices cant correct the past
SelfServing Bias:
quick to take credit and success and blame outside factors for failure
Hindsight Bias:
falsely believe that theyve accurately predicted an outcome, when it already
happened
What do managers need to do to make effective decisions?
Understand cultural differences
Know when to call it quits
Use an effective decision making process
Build and orf that spot the unexpected and adapt to changes (Highly Reliable Orgs HROs)
Effective decision making process
Focus on whats important
is Logical and consistent
acknowledges both subjective and objective thinking/ blends analytics/intuitive
requires only enough info necessary
encourages to gather relevant info and informed opinion
straightforward, easy, flexible
Habits of HROs
not tricked by success
deferring experts to frontline
letting unexpected circumstances provide the solution
embracing complexity
anticipating and recognizing limits
What is (formal) PLANNING?

defining goals, establishing strategies to achieve those, and develop plans to integrate and
coordinate work activities;
Why plan? (PURPOSE)
provides direction; (know what to contribute)
reduces uncertainty; (anticipate change, develop appropriate responses)
minimizes waste and redundancy
establishes goals/standards used in controlling
What are the types of GOALS and PLANS they use?
GOALS (objectives):
desired outcomes/targets; guide mgts decisions
Financial:
increase net profit
Strategic:
be the best blah blah
Stated:
official statements; pero often vauge/ irrelevant to what actually goes on
Real:
goals that firm actually pursues
PLANS:
documents that outline how goals are to be met
BREADTH
Strategic
applies to entire org, overall goals
Operational
encompass particular operational area
TIME FRAME
Short Term
1 year or less
Long Term
SPECIFICITY
Specific
clearly defined/no room for interpretation
Directional
flexible, general guidelines
FREQUENCY OF USE
Single use
Standing
ongoing, for repeated activities; eg policies/rules
**Strategic Plans: LONG TERM, DIRECTIONAL, SINGLE USE
**Ops Plans: SHORT TERM, SPECIFIC, STANDING
What are the different approaches in GOAL SETTING?
Traditional:
goals set by top managers flow down thru org as subgoals; hard to do in real life; goals
may be distorted as it goes down
Means-End Chain: lower levels (means) to reach upper levels goals (end)
Management by Objectives (MBO):
setting mutually agreed upon goals and using those to evaluate
employee performance; uses goals to
motivate
employees (thru rewards)
Goal Specificity
Participative Decision Making
Explicit Time Period
Performance Feedback
WELL WRITTEN GOALS are
written in terms of outcome not actions, measureable, clear time frame,
challenging yet attainable, written down, communicated to members
STEPS
1. Review orgs
mission/
purpose
2. Evaluate available resources; goals should be realistic
3. Determine goals individually/with others
4. Write down the goals and communicate them
5. Review results

Contingency Factors that affect DEVELOPING PLANS?


Organizational Level

Environmental Uncertainty: high uncertainty needs specific but flexible plans


Length of future commitments:
Commitment Concept-
plans should be long enough to meet
commitments
What are the APPROACHES to Planning?
How an org plans-> look at WHO plans
Traditional Approach:
top level managers and
Formal Planning Department
Involve more members
What are the contemporary issues in Planning?
Planning effectively in dynamic environment
Develop specific, but flexible plans
Continue formal planning to see effect even if envi is highly uncertain
Make Org Hierarchy
flatter
(allow lower levels to set goals develop plans)
Using envi scanning, esp. competitive intelligence
ENVI SCANNING: screening info and detect trends
Compet Intel: gather info about competitor and anticipate actions

What is STRATEGIC MANAGEMENT?


task involving POLC to develop orgs
strategies
Strategies
are plans on how orgs do whatever their business do, how to compete, and how
to attract and satisfy customers
Business Model:
how a company is gonna make money; focuses on 1 whether people will value
whatever theyre doing, and 2 if theyre going to make money on that
Why is strategic mgt important?
1. Can make a difference on how well an org performs
2. Because they face continually changing environment
3. Orgs are complex and diverse
What is the Strategic Management Process?
6-step process that encompass strategy planning, implementation, and evaluation

1.
2.

3.

4.

5.
6.

Identify Mission/Goals/Strategies
a. Mission
: statement of purpose; identify what to do
Do External Analysis
a. Opportunities:
positive trends in exte envi
b. Threats:
negative trents
Do Internal Analysis
Resources:
assets (what)
Capabilities:
skills and abilities (how)
Core Competencies:
major value creating capabilities
a. Strengths:
what it
does well; unique resources

b. Weakness:
doesnt do well, resources needed but doesnt have
Formulate strategies
a. 3 Main types of strategies:
corporate, competitive, functional

Implement strategies
Evaluate results

What is CORPORATE STRATEGY?


determines what businesses a company wants to be in
TYPES:
Growth:
expand; use
concentration, vertical&horizontal integration, diversification
Concentration: focus on primary line of business
Vert Integ: backward: be own supplier; forward: be own distributor
Hori Integ: combine with competitors (acquisition)
Divers: related: combine w/ firms in different but related industries; unrelated:
different and unrelated industries
Stability:
serve same people, w same product/service, maintain market share
Renewal:
for declining firms; cut costs, restructure org ops

Retrenchment: ST renewal, minor performace problems


Turnaround: for more drastic problems
HOW are corp strategies MANAGED?
Thru tool called
corporate portfolio matrix
BGC Matrix (by Boston Consulting Group):
Sell/Liquidate DOGS
Milk CASH COWS. limit new investment in them, and instead use cash on STARS
and ??? with strong potential to grow
When market matures, STARS will eventually become CASH COWS

What is COMPETITIVE STRATEGY?


how org will compete in its businesses
Strategic Business Units (SBUs):
org has several independent business with own compet strats
Competitive Advantage:
what sets an org apart (distinctive edge); can come from core
competencies: doing something others cant do, or doing it better than those who can; or from
resources: having something others dont have
Quality as compet advan
How to ASSESS competition and SUSTAIN:
Michael Porters Five Forces Model

These 5 determine industry attractiveness and profitability


Porters 3 Competitive Strategies
Cost Leadership Strategy:
lower costs
Differentiation Strategy:
have unique, valued products
Focus Strategy:
cost focus or differentiation in a
narrow segment
What are FUNCTIONAL STRATEGIES?
strats used by various functional depts to support competitive strategy
Current Strategic Management ISSUES
Need for Strategic Leadership:
ability to anticipate, envision, maintain flexibility ,etc to initiate
changes to create a future for the org

Need for Strategic Flexibility:


ability to recognize external changes, commit resources, know what
strategic decision isnt working
Org Strats for Todays Envi
e-Business:
good for cost leaders and differentiator, and focuser; clicks-and-bricks
Customer Service:
give customers what they want, effective customer communication, org
culture
Innovation:
apply existing tech to new uses, where to emphasise innovation efforts (
basic
research, prod devt, process devt
), decide on timing strategy (
first mover)

III.

ORGANIZING
RC: 10-12 (13?)
What is ORGANIZING?
arranging and structuring work to accomplish goals
arrangement of jobs>
Organization Structure
when managers create/change the structure they engage in
Organizational Design
6 Key Elements of Org Design
i.
Work Specialization:
dividing activities into separate tasks
(division of labor);
high
productivity but too much can lead to boredom/fatigue> low productivity
ii.
Departmentalization:
how jobs are grouped together
FUNCTIONAL: ppl with similar skills/know; coordination, specialization;
poor communication, limited view of org goals
GEOGRAPHICAL: serve geographic needs better; duplication of functions,
isolation from other org areas
PRODUCT: specializations, managers can become experts, closer to
customers; duplication of fcns, limited view of org goals
PROCESS: efficient flow of activities; can only be used for certain products
CUSTOMER: customer needs are met; duplication of fcns, limited view of
org goals
Trend: Cross Functional Team:
consists of individuals from various
functional specialties (AdCore!!!)
iii.
Chain of Command:
line of authority from up to down, who reports to whom
Authority:
rights inherent in a managerial position
Acceptance theory of authority
:
authority comes from willingness
of subordinates to obey; they will obey if
they understand the order
order is consistent with mission
order doesnt conflict w personal beliefs
they are able to perform task
Line Authority: manager can direct work of an employee
Staff Authority: when org becomes too large for line authority
Responsibility:
oblig to perform
Unity of Command principle:
person should report to only 1 manager
iv.
Span of Control:
how many can you manage efficiently and effectively; determines
the # levels and managers in org
Traditional View: no more than 5 or 6
Contemporary: no magic number
the wider the span, the more cost efficient (less managers), but too
much-> reduce effectiveness
v.
Centralization and Decentralization:
which level are decisions made?
Centralized: upper levels
Decentralized: more lower levels
Employee Empowerment:
shift to decentralized
vi.
Formalization:
how standardized the jobs are and extent to w/c employee
behaviours is guided by rules/procedures
HIGH: emps have little discretion over whats/when/how its done
LOW: they have!

Mechanistic Structure (bureaucracy):


natural result of combining the 6 elements,
rigid/stable
Organic Structure:
highly adaptive, loose/flexible; has division of labor but work is not
standardized; for emps that are professional and can handle diverse jobs

CONTINGENCY FACTORS that affect mechan/organic model of ord design


i.
Strategy:
organic for innovative, mechan for tightly control costs
ii.
Size:
large: mechanistic
iii.
Tech:
the more routine, the more mechan;
Woodwards
Unit Prod:
small batches: organic
Mass Prod:
large batches: mechan
Process Prod:
complex: organic
iv.
Degree of Envi Uncertainty:
stable/simple envi: mechan; the greater the
uncertainty, the more organic is better
TRADITIONAL ORG DESIGNS (tends to be more mechanistic in nature)
i.
Simple:
low departmentalization, wide span of control, centralized, little
formalization
ii.
Functional:
groups similar/related occupational specialties together;
functional
departmentalization
applied to entire org
iii.
Divisional:
made up of separate business units/divisions

Why organize? (PURPOSE)

What are CONTEMPORARY ORG DESIGNS? (more organic)


Team Structure:
entire org is made of
work teams;
employee empowerment is crucial bc theres
no
line of managerial authority
that flows from top; teams are held responsible for performance;
complements functional/divisional structure; have efficiency of bureaucracy but flexible
Matrix-Project:
Matrix: assigns specialists from functional departments to work on projects;
dual chain of
command-
has 2 managers, functional area manager and project leader; violates unity of
command
Project: no department to return to; just move on to another projec
Boundaryless:
not defined by hori/verti, or external boundaries
Internal (boundaries) - horizontal ones imposed by specialization/departmentalization;
vertical ones that separate levels and hierarchies
External (boundaries) - separate org from customers/suppliers/stakeholders
TO ELIMINATE
Virtual Orgs: small, temporary, full time employees
Network Orgs: own employees, then outside suppliers (get the best)
Learning:
org that develops the capacity to continuously learn, adapt, and change; emps constantly
acquire and share new knowledge and apply them
Organizing for Collaboration

INTERNAL COLLAB
Cross Functional Teams
Task Forces (ad hoc committee):
temporary
team to tackle specific ST problem
Communities of Practice:
group who share a concern/problems/passions about a topic,
who deepens their know by interacting
EXTERNAL COLLAB
Open Innovation:
allows innovations to transfer in and out (like from customers)
Strategic Partnerships:
2/more firms combine resources/capabilities for purpose
Flexible Work Arrangements
Telecommuting:
work at home, linked to workplace by computer
Compressed Workweeks:
work longer hours per day, less day per week

Flextime (flexible work hours):


# hours quota per week
Job Sharing:
2/more people split 1 full time job
Contingent Workforce (Organizing Issue)
temporary, freelance, or contract workers
issue is: classifying who qualifies
Todays org design CHALLENGES:
Keeping employees connected
Managing global structural issues

Why is Human Resource Management (HRM) important?


Significant source of competitive advantage
Is an important part of org strategies
orgs way of treating their people significantly impacts performance
What EXTERNAL FACTORS that affect the HRM Process?

Economy:
employment
Employee Labor Unions:
collective bargaining agreement
Govtal Laws/Regulations:
affirmative action
Demographic Trends

Identifying/Selecting competent employees


1. Human Resource Planning:
process to ensure they have right #/kinds of capable people, in right
places at right times; thru this: avoid sudden people shortages/surpluses
a. CURRENT ASSESSMENT:
job analysis
(defines a job, necessary behaviors for it) by
interviewing/observing
b. MEETING FUTURE HR NEEDS: to estimate areas in w/c it will be under/overstaffed
2. Recruitment/Decruitment:
locating,identifying,attracting applicants

a. Recruitment sources: internet, referrals, company website, college/professional recruiting


b. Decruitment options: fire, layoff, attrition, transfers, early retirement, job sharing
3. Selection
a.

Selection Tools:
appforms,writtentests,performancesimtest,interviews,

backgroundinvestigation,physicalexam
b. RealisticJobPreview:includesbothpositiveandnegativeinfoaboutjob

Providing employees with needed skills and knowledge


Orientation
Work Unit:
familiarize emp with goals o
f unit,
how his job contributes to goals, introduction
to coworkers
Org Orie:
tells about company goals, history, philo, procedures rules, policies
Training:
as jobs demand change, skills need to be updated

METHODS:


Retaining Employees
Employee Performance Management:
establishes perf standards to evaluate performance
Appraisal Methods:
written essays, critical incident, BARS, MBO
Compensation and Benefits:
develop compensation that reflects the nature of work and workplace;
Who gets paid what?
Skill Based Pay: title doesnt matter, skills do; good for manufacturing than in service/tech
orgs
Variable Pay: pay is contingent on performance
Contemporary Issues in HRM
Downsizing:
layoffs; to remedy, communicate openly, follow laws, have plan for empty offices
Sexual Harassment:
workplace romances
Work-Life Balance:
offer family friendly benefits (on site child care)
Controlling HR Costs:
employee healthcare, pension plan