Session 1: Chap 4 = Managing in Global Environment

Global trade shaped by 2 forces =

• Regional trading alliance

• Global trade mechanism

1. Regional trading alliance

1. European Union (EU)
A union of 28 democratic European Nations created as a unified economic and trade entity with
the Euro as a single common currency.
Purpose: Economic and political partnership
2. North American Free Trade Agreement (NAFTA)
Agreement among the Mexican, Canadian & U.S Government in which certain barriers to trade
have been eliminated.
Eliminating the barriers to free trade (Tariffs, import licensing requirements, customs free) has
strengthened the economic power of all 3 countries.
3. Association of Southeast Asian Nations (ASEAN)
Trading alliance of 10 Southeast Asian Nations. On Jan 1,2010, China & ASEAN launched free trade
agreement, making it the world’s third largest trade bloc.
ASEAN also make agreements on social, cultural, education, human resource exchange and
economic.
4. African Union
Has vision to build an integrated, prosperous & peaceful Africa.

2. Global Trade Mechanism

Ensure that trade continues efficiently & effectively
1. World Trade Organization (WTO)
Global organization of 159 countries that deals with the rules of trade among nations

2. International Monetary Funds (IMF)

An organization of 188 countries that promotes international monetary cooperation & provides
advice, loans and technical assistance.
3. Organization of Economic Cooperation & Development (OECF)
An international economic organization that helps its 30 member countries achieve sustainable
economic growth & employment.
Session 2: Chap 4 = Managing Change & Innovation
2 Views of the change in process
1. The Calm Waters Metaphor
• Using Kurt Lewin’s three-step change process as break in the organization’s equilibrium state.
➢ Unfreezing the status quo
Preparing the needed change
➢ Changing to a new state
Implement the new change
➢ Refreezing to make the change permanent

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 The stability and predictability of the calm waters metaphor don’t exist. Disruption in the status quo are
not temporary and they are not followed by return to calm waters. Many managers never get out of the
rapids, they face constant change. Therefore, this type of environment isn’t what most managers face
today.
2. White-Water Rapids Metaphor
The lack of environmental stability and predictability requires that managers and organizations
continually adapt (manage change actively) to survive.
Example: Lauren Ipsen as senior vice president and general manager of Connected Energy needs to
develop energy ecosystems for the smart-grid market. Because the market is so unpredictable,
Lauren’s job is like having to put together 1000-piece puzzle, but she doesn’t have the picture what it
looks like and some pieces are missing.
Session 3: Chap 9 = Managing Strategy
Strategic Management Procesc

1. Identifying the organization’s current mission, goals, and strategies:

– Mission: a statement of the purpose of an organization.
• The scope of its products and services
– Goals: the foundation for further planning.
• Measurable performance targets
2. Doing an external analysis
– The environmental scanning of specific and general environments.
• Focuses on identifying opportunities and threats

3. Doing an Internal analysis

Assessing organizational resources, capabilities, and activities:
– Strengths create value for the customer and strengthen the competitive position of the firm.
– Weaknesses can place the firm at a competitive disadvantage.
4. Formulating strategies
a. Develop and evaluate strategic alternatives.
b. Select appropriate strategies for all levels in the organization that provide relative advantage over
competitors.
c. Match organizational strengths to environmental opportunities.
d. Correct weaknesses and guard against threats.
5. Implementing strategies
a. Implementation – effectively fitting organizational structure and activities to the environment.
b. The environment dictates the chosen strategy; effective strategy implementation requires an
organizational structure matched to its requirements.
6. Evaluating results
a. How effective have strategies been?
b. What adjustments, if any, are necessary?

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 Session 4: Chap 10 = Designing Organization Structure
Purpose of organizing:
1. Divides work to be done into specific jobs and departments
2. Assigns tasks and responsibilities associated with individual jobs
3. Coordinates diverse organizational tasks
4. Clusters jobs into units
5. Establishes relationships among individuals, groups and departments
6. Establishes formal lines of authority
7. Allocates and deploys organizational resources

Six key elements of organizational design

1. Work Specialization
• Dividing work activities into separate job tasks.
• Some tasks require highly developed skills
• Helps employees be more efficient
2. Departmentalization
• The line of authority extending from upper organizational levels to the lowest levels, which clarifies who
reports to whom

3. Chain of Command
• Concepts:
▪ Authority
Right in managerial position to tell people what to do and to expect them to do it
➢ Line authority = entitles a manager to direct the work of an employee
➢ Staff Authority = Position that have been created to support, assist and advise those holding the
authority

▪ Responsibility
The obligation or expectation to perform any assigned duties
▪ Unity of command
The management principle that each person should report to only one manager
4. Span of Control
The number of employees a manager can efficiently and effectively manage
5. Centralization and Decentralization
Centralization = The degree to which decision making is focused at upper levels of the organization

Decentralization = The degree to which lower-level employees provide input or actually make decision (mid
to bottom)

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 6. Formalization
the degree to which jobs within the organization are standardized and the extent to which employee
behavior is guided by rules and procedures
Mechanistic and Organic Structures

 Mechanistic organization – an organizational design that’s rigid and tightly controlled.

 Organic organization – an organizational design that’s highly adaptive and flexible.

Factors Affecting Structural Choice

1. Strategy & Structure
▪ Flexibility & free flowing information of the organic structure works well when organization is pursuing
meaningful unique innovations
▪ The mechanistic organization with its efficiency, stability and tight controls works best for companies
wanting to tightly control costs

2. Size & Structure

▪ Large organization with more 2000 employees tend to have more specialization, departmentalization,
centralization and rules and regulation.
▪ Once there are around 2000 employees its already fairly mechanistic
▪ Adding 500 employees to an organization with only 300 employees is likely to make it more mechanistic.

3. Technology & Structure

▪ Based on how routine technology is for transforming inputs into outputs
➢ The more routine the more mechanistic
➢ The more nonroutine the more organic

▪ Based on Production of Items

➢ Unit Production (in units or small batches)
➢ Mass Production (in large batches)
➢ Process Production (in continuous processes)

4. Environmental Uncertainty & Structure

➢ In stable and simple environment, mechanistic designs can be more effective
➢ The greater the uncertainty, the more organization needs the flexibility of an organic design

Types of Organizational Structure

most of which fall on the more traditional, mechanistic side of the spectrum.
1. Functional Organizational Structure

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 Advantage:
➢ Enhanced coordination & control
➢ Centralized decision-making
➢ Enhanced organizational level perspective
➢ More efficient use of managerial & technical talent >> high degree of specialization for employees
➢ Facilitated career paths in specialized areas
Disadvantages:
➢ Difficult to establish uniform performance standards
➢ inefficient if the organization has a variety of different products or target markets.
➢ May lead to short-term thinking
➢ limit peoples' knowledge of and communication with other departments

2. Product-Based Divisional Structure

Advantage :
➢ Key interdependencies and resources within the division are coordinated toward an overall
outcome
➢ can help shorten product development cycles.
Disadvantage:
➢ There is heavy duplication of resources, skills and expertise as each division has its own functional
Works best when
➢ Organization is very large in size
➢ Business environment is dynamic and always flux
➢ Multiple products and customer types exist

3. Geographical Divisional Structure

Advantage :
➢ Low cost
➢ No geographic duplication
➢ No customer duplication
➢ Fewer management level
Disadvantage :
➢ Limited specialization
➢ Lack of management control over product or customer emphasis
➢ when you have more than one marketing department -- one for each region -- run the risk of
creating campaigns that compete with (and weaken) other divisions across your digital channels.
4. Matrix Structure

Advantage:
➢ Accommodates a wide variety of project-oriented business activities
➢ Provides good training ground for strategic manager
➢ Maximizes efficient use of functional managers

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➢ Fosters creativity and multiple sources of diversity
➢ Gives middle management broader exposure to strategic issues
Disadvantage:
➢ Cause participant to experience dual authority > lead frustrating and confusing
➢ Means participant need good interpersonal skills and extensive training
➢ May result confusion and contradictory policies
➢ Necessities tremendous horizontal & vertical coordination.
Session 5: Chap 14 = Managing Communication

➢ Communication = the transfer and understanding of meaning.

➢ Type of Communication
▪ Interpersonal Communication – communication between two or more people.
▪ Organizational Communication – all the patterns, networks, and systems of communications
within an organization.
➢ Function of Communication:
▪ Control = Formal and informal communications act to control individuals’ behaviors in
organizations.
▪ Motivation = Communications clarify for employees what is to be done, how well they have done
it, and what can be done to improve performance.
▪ Emotional Expression= Social interaction in the form of work group communications provides a
way for employees to express themselves.
▪ Information = Individuals and work groups need information to make decisions or to do their
work.
➢ The Intrapersonal Communication Process

Contains 7 elements :
1. Sender has a message
2. A message is purpose to be conveyed
3. Encoding converts a message into symbols
4. Channel is the medium a message travels along
5. Decoding happens when the receiver retranslates a sender’s message
6. Feedback occurs

➢ Communication Methods
Face to face, telephone, group meetings, fax, language, memos etc.
➢ Evaluate Communication according to their feedback, cost, formality, encoding ease, decoding ease
and time consuming.
➢ Barrier to effective communication
1. Filtering – the deliberate manipulation of information to make it appear more favorable to the
receiver.
2. Information overload – occurs when information exceeds our processing capacity.
3. Jargon – specialized terminology or technical language that members of a group use to
communicate among themselves.

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 4. Language
5. National Culture
6. Emotions
➢ Overcome barriers
1. Using Feedback
2. Simplifying language
3. Listening actively
4. Constraining emotions
5. Watching nonverbal clues
➢ Formal communication – communication that takes place within prescribed organizational work
arrangements.
➢ Informal communication – communication that is not defined by the organization’s structural hierarchy.
➢ Direction of communication
• Upward communication – communication that flows upward from employees to managers.
• Lateral communication – communication that takes place among any employees on the same
organizational level.
• Diagonal communication – communication that cuts across work areas and organizational levels.

➢ Organizational Communication Networks

▪ The chain
Communication flows according to the formal chain of command.
▪ The wheel
Communication flows between a clearly identifiable and strong leader & others in a work team
▪ All-channel
Communication flows freely among all members of a work team

➢ Communication Networks – the variety of patterns of vertical and horizontal flows of organizational
communication.
▪ Grapevine – the informal organizational communication network. Example:
The negative consequences of rumors can be minimized by: communicating openly, fully and honestly
with employees.
➢ Workplace design also influences organizational communication. Design should support 4 types of
employee work : focused work, collaboration, learning and socialization.
Ex : cubicle, open office, coworking spaces etc.
➢ Technology affects managerial communication and organizations.
• Improves manager’s ability to monitor performance
• Gives employees more complete information to make faster decision
• Provide employees more opportunity to collaborate and share information
• Made it possible for people to be fully access information anytime anywhere.

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➢ Contemporary issues in communication
❖ Challenges of managing communication in Internet world:
▪ Legal and security issues
▪ Lack of personal interaction
❖ Managing the organization’s knowledge resources
Making It easy for employees to communicate and share their knowledge, which can help them learn
from each other ways to do their jobs more effectively and efficiently.
One way is through online information databases. Another way is through creating communities of
practice.
❖ The role of communication in customer service
What communication takes place and how it take place can significantly affect a customer’s
satisfaction with the service and the likelihood of being repeat customer.
❖ Getting employee input
Potential valuable information should not be ignored.
❖ Communicating ethically (include all relevant information & not deceptive)
Can be encouraged through clear guidelines and through answering questions that force a
communicator to think through the communication choices made and the consequences of those
choices.
Session 6: Chap 18 = Monitoring & Controlling

➢ Controlling
Process of monitoring, comparing and correcting work performance
➢ As final step in management process.
➢ Purpose : To ensure that activities are completed in ways that lead to the accomplishment of
organizational goals
➢ Important because :
▪ It’s only way to know if goals are being met and if not , why
▪ It provides information and feedback so managers feel comfortable empowering employees
▪ It helps protect an organization and its assets
➢ Control Process :

1. Measuring Actual Performance

➢ Four Approach how :
➢ What to measure?
▪ Manager deal with people > Employee satisfaction/ turnover & absenteeism rate
▪ Manager at pizza delivery location > number of pizzas delivered per day , average delivery time for
phone orders vs online orders
▪ Manager in governmental agency > applications typed per day, client requests completed per hours,
average time to process paperwork
2. Comparing actual performance against the standard
a. Determining the degree of variation between actual performance and the standard.
b. Range of variation – the acceptable parameters of variance between actual performance and the
standard.

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3. Taking managerial action
a. Immediate corrective action – corrective action that corrects problems at once in order to get
performance back on track.
b. Basic corrective action – corrective action that looks at how and why performance deviated before
correcting the source of deviation.
c. Revise the Standard – if performance consistently exceeds the goal, then a manager should look at
whether the goal is too easy and needs to be raised.
➢ Organizational performance
• Performance: the end result of an activity.
• Organizational performance : the accumulated results of all the organization’s work activities.
• 3 frequently how OP is measured:
o Productivity
The output of goods and services produces divided by the inputs needed to generate that output
o Effectiveness
A measure of how appropriate organizational goals are and how well those goals are being met
o Industry and company rankings compiled by various business publications

• Type of control

• Tools for Measuring Organizational

Performance
➢ Feed forward control – control that takes place before a work activity is done.
➢ Concurrent control – control that takes place while a work activity is in progress.
➢ Management by walking around – a term used to describe when a manager is out in the work area
interacting directly with employees.
➢ Feedback control – control that takes place after a work activity is done.
➢ Financial controls – Include financial ratios (liquidity, leverage, activity and profitability) and
budgets (Quantitative standards, Deviations)
➢ Information Control
Using Management Information System (MIS) – a system used to provide management with
needed information on a regular basis. Others include comprehensive and secure controls such
as data encryption, system firewall, data back up etc. that protect organization information.

➢ Balanced scorecard
Provide a way to evaluate an organization’s performance in four different areas rather than just
from financial perspective.
▪ Financial
▪ Customer
▪ Internal processes
▪ People/innovation/growth assets

➢ Benchmarking

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 Provide control by finding the best practices among competitors or noncompetitors and from
inside the organization itself.

• Contemporary issues in control

▪ Adjusting controls for Cross-Cultural Differences and Global Turmoil
o Control techniques can be quite different for different countries.
o Managers in foreign countries also need to be aware of constraints on corrective actions
they can take. (Different country different law different technology)
▪ Workplace Concern so that managers need to have policies in place to control inappropriate actions
and ensure that work is getting done efficiently and effectively.
❖ Workplace privacy
❖ Employee theft
❖ Workplace violence
❖ Attendance and Punctuality

▪ Controlling customer interactions

Control is important because employee service productivity and service quality influences
customers perception of service value.
Organization want long-term and mutually beneficial relationship among their employees and
customer.
▪ Corporate governance
System used to govern a corporation so that the interest of corporate owners is protected

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