CHAPTER 1: THE CONTEMPORARY WORKPLACE What are the ...
CHAPTER 1: THE CONTEMPORARY WORKPLACE What are the challenges in the contemporary workplace? What are organisations like in the contemporary workplace? Who are managers and what do they do> What is the management process? How do you learn essential managerial skills and competencies? Working in today’s economy - A new workplace - Today’s economy is a networked economy. - The new economy is a global economy. National economies are becoming increasingly interdependent. - Organisations are expected to continuously excel on performance criteria. - For individuals, there are no guarantees of long-term employment. - Yet ... employees represent the firm’s intellectual capital. The challenge is to combine the talents of many people, sometimes thousands, to achieve unique and significant results. - Intellectual capital: The collective brain power or shared knowledge of a workforce - Knowledge worker: Someone whose knowledge is an important asset to employers Globalisation and technology. -
Globalisation: The worldwide interdependence of: resource flows, product markets and business competition. Technology: Computers allow organisations of all types and sizes, locally and internationally, to speed transactions and improve decision-making. In ‘virtual space’ people in remote locations can hold meetings, access common databases, share information/files, make plans and solve problems together, without having to meet face to face. Computer literacy must be mastered and continuously developed as a foundation for career success.
Diversity. -
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Workforce diversity: differences among workers in gender, race, age, ethnic culture, ablebodiedness, religious affiliation and sexual orientation. The legal context of HRM is very strict in prohibiting the use of demographic characteristics to make decisions about things like hiring and promotion. By valuing diversity, organisations can tap a rich talent pool and help people work to their full potential. o Yet ... diversity bias is still a limiting factor in many work settings. o Prejudice: the display of negative, irrational attitudes towards members of diverse populations Discrimination: occurs when someone is denied a job or a job assignment for reasons not jobrelevant. The glass ceiling effect refers to an invisible barrier limiting the advancement of women and minority groups.
Ethics. -
Ethical and social responsibility issues involve all aspects of organisations, the behaviour of their members and their impact on society. Expectations now include: Sustainable development, environmental protection Product safety and fair practices Protection of human rights Within the workplace: equal employment opportunities, equity of compensation, privacy, job security, health and safety, and freedom from sexual harassment
Careers. -
Today’s career implications include: o Core workers: full-time, pursuing a traditional career path. o Contracted workers: perform specific tasks as needed. o Casual and part time workers: hired as needed. o The term free agency is increasingly used to describe career management – you must be prepared to change jobs over time, and your skills must be portable and of current value in the market.
Organisations as systems: - The environment suppliers o Resource inputs: § People § Money § Materials § Technology § Information - The organisation creates: o Transformation process § Workflow turn resources into outputs - The environment consumes: o Product outputs § Finished goods and/or finished services Organisational performance. -
Value is created when resources are used in the right way, at the right time, at minimum cost to create high-quality goods/services. Performance measures include: Productivity: the quantity and quality of work performance, with resource use considered. Performance effectiveness: an output measure of task or goal accomplishment. Performance efficiency: a measure of resource cost associated with goal accomplishment.
Goal High attainment Low
Effective but not efficient - Goals achieved - Resources wasted Neither effective nor efficient - Goals are not achieved - Resources wasted Poor
Changing nature of organisations. -
Important organisational transitions include: o Pre-eminence of technology o Demise of command and control o Focus on speed o Embrace networking o Belief in empowerment o Emphasis on teamwork o New workforce expectations o Concern for work-life balance.
Effective and efficient - Goals achieved - Resources put to good use - High productivity Effective but not efficient - Goals not achieved - No wasted resources Good
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Total quality management (TQM): managing with commitment to continuous improvement, product quality and customer satisfaction.
Managers in today’s organisations. -
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Managers: The people in organisations who directly support and help activate the work efforts and performance accomplishments of others. Top managers: guide the performance of the organisation as a whole, or one of its major parts. Common job titles include chief executive officer, chief operating officer, managing director and director. Managers work in different capacities within organisations. o Middle managers o Project managers o Team leaders or supervisors o Line managers o Staff managers o Functional managers o General managers o Administrators Managerial performance accountability: requirement to show performance results to a supervisor. Managerial focus on quality of work life: overall quality of human experiences in the workplace.
Changing nature of managerial work: The organisation as an upside-down pyramid. Customers and clients - Ultimate beneficiaries of organisation’s efforts Serve Operating workers - Do work directly affecting customer/client satisfaction Support Team leaders and managers -
Help the operating workers do their jobs and solve problems Support
Top managers - Keep organisation’s mission and strategies clear The management process: Functions of management.
Planning: - Setting performance objectives and deciding on how to achieve them
Controlling: - Measuring performance and taking action to ensure desired results
THE MANAGEMENT PROCESS
Leading: - Inspiring people to work hard to achieve high performance
Organising: - Arranging tasks, people and other resources accomplish the work
The management process: Managerial activities and roles (Mintzberg, 1973). Interpersonal roles How a manager interacts with the other people - Figurehead - Leader - Liaison
Informational roles How a manager exchanges and processes information - Monitor - Disseminator - Spokesperson
Managerial learning: Essential managerial skills.
Decisional roles How managers use information in decision making - Entrepreneur - Disturbance handler - Resource allocator - Negotiator
CHAPTER 2 – ENVIRONMENT AND DIVERSITY What is the external environment of organisations? What is the internal environment and organisational culture? What is a customer-driven organisation? What is a quality-driven organisation? How is diversity managed in a multicultural organisation? Environment and competitive advantage. Companies need capabilities to compete, survive and thrive Strategic capabilities: Those that are difficult to imitate, are of value to the customer, and are better than those possessed by the majority of competitors. Dynamic capabilities: Physical (e.g. state-of-the-art equipment or advantageous location), organisational (e.g. outstanding sales force) and human (e.g. expertise in a specialised field). A competitive advantage allows an organisation to deal with market and environmental forces better than its competitors. Environment and competitive advantage: General environment. Environment and competitive advantage: Specific environment.
Environment and competitive advantage: The recent case of Dairy Bell. External environment: Another perspective (Samson & Daft, 2009).
Environment and competitive advantage: Environmental uncertainty.
Internal environment and organisational culture. -
Organisational culture: The system of shared beliefs and values that develops within an organisation and guides the behaviour of its members. The internal culture has the potential to shape attitudes, reinforce common beliefs, direct behaviour and establish performance expectations and the motivation to fulfil them
Internal environment and organisational culture. Customer-driven organisations: Who are they and what do they want?
Customer-driven organisations: Who are they and what do they want? Customer-driven organisations: Who are they and what do they want? -
Customer relationship management (CRM): when the business strategically tries to build lasting relationships with, and add value for, customers. Supply chain management: involves strategic management of all operations relating an organisation to the suppliers of its resources, including purchasing, manufacturing, transportation and distribution. Choosing a supplier – a simple or complex, ethical decision?
Quality-driven organisations: TQM, continuous improvement, technology and design. -
Underscored by ISO certification ...indicates conformance with a rigorous set of international quality standards. Is managing with commitment to continuous improvement, product quality and customer satisfaction.
The ‘four absolutes’ of TQM:
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o Conformance to standards Defect prevention Defect-free work Quality saves money. o Why does quality and TQM matter? § Quality-driven organisations: TQM, continuous improvement, technology and design. The key principles of TQM are: o Continuous improvement of the quality of products, processes and services. o Reduced waste. o Less variation. o Supplier partnership. o Team process. o Customer focus. o Exceeding the external customer’s needs.
Globalisation: The worldwide interdependence of: resource flows, product markets and business competition. Technology: Computers allow organisations of all types and sizes, locally and internationally, to speed transactions and improve decision-making. In ‘virtual space’ people in remote locations can hold meetings, access common databases, share information/files, make plans and solve problems together, without having to meet face to face. Computer literacy must be mastered and continuously developed as a foundation for career success.
Diversity. -
-
Workforce diversity: differences among workers in gender, race, age, ethnic culture, ablebodiedness, religious affiliation and sexual orientation. The legal context of HRM is very strict in prohibiting the use of demographic characteristics to make decisions about things like hiring and promotion. By valuing diversity, organisations can tap a rich talent pool and help people work to their full potential. o Yet ... diversity bias is still a limiting factor in many work settings. o Prejudice: the display of negative, irrational attitudes towards members of diverse populations Discrimination: occurs when someone is denied a job or a job assignment for reasons not jobrelevant. The glass ceiling effect refers to an invisible barrier limiting the advancement of women and minority groups.
Ethics. -
Ethical and social responsibility issues involve all aspects of organisations, the behaviour of their members and their impact on society. Expectations now include: Sustainable development, environmental protection Product safety and fair practices Protection of human rights Within the workplace: equal employment opportunities, equity of compensation, privacy, job security, health and safety, and freedom from sexual harassment
Careers. -
Today’s career implications include: o Core workers: full-time, pursuing a traditional career path. o Contracted workers: perform specific tasks as needed. o Casual and part time workers: hired as needed. o The term free agency is increasingly used to describe career management – you must be prepared to change jobs over time, and your skills must be portable and of current value in the market.
Organisations as systems: - The environment suppliers o Resource inputs: § People § Money § Materials § Technology § Information - The organisation creates: o Transformation process § Workflow turn resources into outputs - The environment consumes: o Product outputs § Finished goods and/or finished services Organisational performance. -
Value is created when resources are used in the right way, at the right time, at minimum cost to create high-quality goods/services. Performance measures include: Productivity: the quantity and quality of work performance, with resource use considered. Performance effectiveness: an output measure of task or goal accomplishment. Performance efficiency: a measure of resource cost associated with goal accomplishment.
Goal High attainment Low
Effective but not efficient - Goals achieved - Resources wasted Neither effective nor efficient - Goals are not achieved - Resources wasted Poor
Changing nature of organisations. -
Important organisational transitions include: o Pre-eminence of technology o Demise of command and control o Focus on speed o Embrace networking o Belief in empowerment o Emphasis on teamwork o New workforce expectations o Concern for work-life balance.
Effective and efficient - Goals achieved - Resources put to good use - High productivity Effective but not efficient - Goals not achieved - No wasted resources Good
-
Total quality management (TQM): managing with commitment to continuous improvement, product quality and customer satisfaction.
Managers in today’s organisations. -
-
Managers: The people in organisations who directly support and help activate the work efforts and performance accomplishments of others. Top managers: guide the performance of the organisation as a whole, or one of its major parts. Common job titles include chief executive officer, chief operating officer, managing director and director. Managers work in different capacities within organisations. o Middle managers o Project managers o Team leaders or supervisors o Line managers o Staff managers o Functional managers o General managers o Administrators Managerial performance accountability: requirement to show performance results to a supervisor. Managerial focus on quality of work life: overall quality of human experiences in the workplace.
Changing nature of managerial work: The organisation as an upside-down pyramid. Customers and clients - Ultimate beneficiaries of organisation’s efforts Serve Operating workers - Do work directly affecting customer/client satisfaction Support Team leaders and managers -
Help the operating workers do their jobs and solve problems Support
Top managers - Keep organisation’s mission and strategies clear The management process: Functions of management.
Planning: - Setting performance objectives and deciding on how to achieve them
Controlling: - Measuring performance and taking action to ensure desired results
THE MANAGEMENT PROCESS
Leading: - Inspiring people to work hard to achieve high performance
Organising: - Arranging tasks, people and other resources accomplish the work
The management process: Managerial activities and roles (Mintzberg, 1973). Interpersonal roles How a manager interacts with the other people - Figurehead - Leader - Liaison
Informational roles How a manager exchanges and processes information - Monitor - Disseminator - Spokesperson
Managerial learning: Essential managerial skills.
Decisional roles How managers use information in decision making - Entrepreneur - Disturbance handler - Resource allocator - Negotiator
CHAPTER 2 – ENVIRONMENT AND DIVERSITY What is the external environment of organisations? What is the internal environment and organisational culture? What is a customer-driven organisation? What is a quality-driven organisation? How is diversity managed in a multicultural organisation? Environment and competitive advantage. Companies need capabilities to compete, survive and thrive Strategic capabilities: Those that are difficult to imitate, are of value to the customer, and are better than those possessed by the majority of competitors. Dynamic capabilities: Physical (e.g. state-of-the-art equipment or advantageous location), organisational (e.g. outstanding sales force) and human (e.g. expertise in a specialised field). A competitive advantage allows an organisation to deal with market and environmental forces better than its competitors. Environment and competitive advantage: General environment. Environment and competitive advantage: Specific environment.
Environment and competitive advantage: The recent case of Dairy Bell. External environment: Another perspective (Samson & Daft, 2009).
Environment and competitive advantage: Environmental uncertainty.
Internal environment and organisational culture. -
Organisational culture: The system of shared beliefs and values that develops within an organisation and guides the behaviour of its members. The internal culture has the potential to shape attitudes, reinforce common beliefs, direct behaviour and establish performance expectations and the motivation to fulfil them
Internal environment and organisational culture. Customer-driven organisations: Who are they and what do they want?
Customer-driven organisations: Who are they and what do they want? Customer-driven organisations: Who are they and what do they want? -
Customer relationship management (CRM): when the business strategically tries to build lasting relationships with, and add value for, customers. Supply chain management: involves strategic management of all operations relating an organisation to the suppliers of its resources, including purchasing, manufacturing, transportation and distribution. Choosing a supplier – a simple or complex, ethical decision?
Quality-driven organisations: TQM, continuous improvement, technology and design. -
Underscored by ISO certification ...indicates conformance with a rigorous set of international quality standards. Is managing with commitment to continuous improvement, product quality and customer satisfaction.
The ‘four absolutes’ of TQM:
-
o Conformance to standards Defect prevention Defect-free work Quality saves money. o Why does quality and TQM matter? § Quality-driven organisations: TQM, continuous improvement, technology and design. The key principles of TQM are: o Continuous improvement of the quality of products, processes and services. o Reduced waste. o Less variation. o Supplier partnership. o Team process. o Customer focus. o Exceeding the external customer’s needs.
