ORGANIZATION MANAGEMENT

Organizational structure → the structure gives us info about how people work in an organization; their tools and
roles (hierarchy of the organization) and the relationships between the people inside the organization

Organizational design and change → how organization is designed (assigned different tasks to people) and how it
copes with change → adapting the company to the customer needs

Organizational design → Create a match between people and their competence, preference and behaviour and their
responsibilities in order to increase the possibility of the person of being successful- the goal of the manager is to
maximize the match between work and personal attitudes. It is also important to understand customers needs and
orientations (customer behaviour). Note the example of Pepsi design.

Culture of the company → share beliefs and values that governate a company. Way to ensure that everybody goes in
the same direction. If not share the same culture → everybody can do everything. Culture gives the company and
identity. How make everybody follow the same culture: online questionnaires, give incentives (bonuses, rewarded e-
mail etc.) and sanctions. Google works with small teams to make engineers collaborate and interact with each other.

WHAT IS AN ORGANIZATION?

Organizations are intangible: we see the products or services that an organization provides and the people an
organization employ. On the contrary, we do not see the way an organization motivates, controls, and influences
employees.

An organization is a consciously coordinated social unit composed of two or more people, which functions on a
relatively continuous basis to achieve a common goal or set of goals

An organization is a response to and a means of satisfying some human need. New organizations are spawned when
new technologies become available and new needs are discovered—such as social networking sites like Facebook—
and organizations die or are transformed when the needs they satisfied are no longer important—such as video
rental stores like Blockbuster.

Who creates the organizations that arise to satisfy people’s needs? Sometimes an individual or a few people believe
they possess the necessary skills and knowledge and set up an organization to produce goods and services

In general, entrepreneurship is the term used to describe the process by which people recognize opportunities to
satisfy needs and then gather and use resources to meet those needs.

Five major part of an organization:

EXAMLE: Amazon

1. Operating core: employees

2. Middle line: managers that link employees with managers
3. Apex: CEO
4. Support staff:
5. Techno-structure

WHY DO ORGANIZATIONS EXIST?

1. Increase specialization and division of labor;

2. Use-large scale technologies;
3. Manage the external environment
4. Economize on transaction costs
5. Exert power and control

HOW DOES AN ORGANIZATION CREATE VALUE?

Value creation takes place at three stages:input,conversion,and output.Each stage is affected by the environment in
which the organization operates.

The organizational environment is the set of forces and conditions that operate beyond an organization’s
boundaries but affect its ability to acquire and use resources to create value.

Adam smith understood an important principle: the division of labour 10 thousand pin per day instead of 10

Alienation: detached from reality, you loose interest in what you are doing (you do that just for money)

1. SCIENTIFIC MANAGEMENT THEORY

• Taylorism and the Fordism → Ford was the first one to apply the Taylorism in a company → mass production
(industrial Revolution).
• To improve the production process, you have to study every single activity to find out which is the part that
cause the greatest waste of time and eliminating the unnecessary movements/activities
• The scientific method is still applied in logistic sector (transportation)
• People were just motivated my money
• Work reduced from 9 to 8 hours/day because he could organize three shifts of employee per day and have
24 hours production every day
• There is just one best way to do things
• Attention to the physical ability of workers

2. HUMAN RELATIONS

• Hawthorne studies: a professor studied the influence in productivity of light in the working environment
• The productivity increase both in the lightened and dark environment but also on the environment that
remained stable
 • Their productivity increased because since they know they were studies → they received attention from
their managers
• Motivation is not just linked to monetary incentives but also with soft incentives
• Reciprocity: the employment relations are driven by economic but also by social mechanism that respond to
the norm of reciprocation: since you care about me, I work harder producing more
• Reciprocity is the main principle that guide human behaviour

THE ORGANIZATION AND ITS ENVIRONMENT

What affects people motivation and performance is the organization structure (second level) and the national
culture (first level)

national culture

organization structure

individual

KEY CONCEPTS
STAKEHOLDERS: entities that have some interest in that an organization performs and functions well-generally they
are interested in that the enduements they receive from the organization exceed their contribution

We can divide stakeholders in two categories: inside and outside stakeholders

INSIDE STAKEHOLDERS: shareholders, managers, workers

OUTSIDE STAKEHOLDERS: suppliers (banks, creditors, clients), unions

INSIDE CONTRIBUTION (GIVE) ENDUCEMENT (GET BACK)

SHAREHOLDERS Money (capital) dividends
MANAGERS Knowledge, skills, abilities, network Efficiency in performance, high productivity,
estimation, remuneration, satisfaction,
bonuses, shares
WORKFORCE Physical and mental efforts, knowledge, Salary, recognition, satisfaction, carer
skills opportunities, training, travel opportunities,
bonuses, scope in life
OUTSIDE
SUPPLIERS Capital, services and raw materials, Money, LT relationship, value for each other
loyalty
GOVERNMENTS Social services, infrastructure, health Taxes. Behaving in an ethical way (conform to
services the law), job opportunities (employment)
 UNIONS Regulation, protection Fair treatment
COMMUNITY Workforce, trust, customers Wealth, respect for the law, national or regional
pride
CUSTOMERS Money, WOM, data, feedbacks High quality goods and services

LEADERSHIP
Compassion → when you feel sorry for someone/ you feel the same emotions of another person

Capability framework theory→ there is difference between real life and ideal life

Quality of a good leader:

3. Consistent
4. Compassionate
5. Authentic
6. Communication skills → communicator
7. Positive
8. Inspiring
9. Influencer
10. Full of passion
11. Role modelling
12. Humble
13. Emotional
14. Diverse
15. Correct

Leadership is a process through with a leader guide its collaborator and it is influence by three main factors:

1. The leader’s characteristics and behaviours

2. Collaborator’s perceptions and attributions about the leader
3. Context where this process take place

Leadership theory shows the perception of a leader, not the reality (how actually is a leader)

Pygmalion effect/ self-fulfilling proficiency→ how the leader can influence the performance and confidence of other
people (influence of other in your performance)

Especially the first manager has an enormous impact on your attitudes and self-confidence

• Leaders are born → the focus is on selecting the right person

• Leaders are made → the focus is on training

3 different leadership style:

Autocratic style → military context

Democratic style →

Laisser faire style →

Motivation → schede su ams

Personality
Definition:

Personality influences how people adjust to their unique environment and reacts to and interacts with others

Personality is stable and related to us. Some strong experience can modify it.
Standardize situation → repression of personality

How to measure personality?

1. Self-report personality

Problem: you can give answers that are socially accepted hiding the truth

2. External sources of information

Problem: people that do not like you can cheat presenting you in a negative way

Personality traits: you repeat your behaviour frequently

TEAM MANAGEMENT

To create a good team, you need competence but also create a climate of psychological safety encouraging
everyone to challenge and express opinions

Storming → interpersonal conflict (this are dangerous, and you have to solve it asap) and task conflict (this make
the team progress)

Phenomenon of groupthink → team conformity problem

How to prevent it?

1. Psychological safety (challenge ideas)

Designing organizational structure

Defining organizations → environment (stakeholders) → inside the organization → individuals and teams/ structure
of the organization (design)

Tall or flat depends on the number of level compared with the number of employees

After a certain point the number of level remains stable → managers will coordinate more people
 Employee: 235000 (global)
26 levels

Span of control

Definition: number of employees directly coordinate by a single manager (about 8 people according to some
research)

▪ More hierarchical level → narrow span of control

▪ Less hierarchical level → large span of control
Bureaucracy

According to weber bureaucracy is useful to make companies work efficiently and effectively

Chapter 10: organization change

Lewin: forces to change vs forces resisting to change. You can decrease resistance or increase the support to change

Evolutionary (step by step) vs revolutionary changes (extreme change)

Creating dissatisfaction with the status quo by highlighting the bad points about the current situation

Change

➔ action research: diagnosis about the current situation

➔ future end state: vison
➔ implement the change
➔ evaluate the change and make the new habits become routinely

social technical system theory: when you change something, you have to take into account technological aspects,
but also on the social implications of the change

total quality management: having in the company people who are working in improving the quality of process and
products in order to create a positive change circle (continuously improving the quality)

movie: il diritto di contare