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ADMS 3930

FINAL EXAM STUDY GUIDE

Management: HRM 3930 – Week 1

Managerial Effectiveness and Organizational Purpose

Module 1:

- E e o e k o s so ethi g a out a age e t a d it’s i po ta t ut people ha e preconceptions and tend to block out new understanding which requires an open mind

Management: Includes planning, organizing, controlling and leading resources to work

effectively to accomplish goals

- Resources = all goods of values to the organization

- Organizational success depends on the way the resources are directed by managers

Relationship between organization and the external environment:

- Organization is a distinct entity within the environment but with intentionally leaky

boundaries for resources to flow

Basic resource exchange

- Su essful o ga izatio s ha e o e esou es afte the ’ e ee a ou d fo a hile - E e usi ess o sta tl t a sfe s esou es out to it’s e i o e t; pa s sala ies, pa s

rent, pay taxes, producing goods etc.

- Firms must have incoming resources from the e te al e i o e t to eple ish hat’s transferred out

External environment:

 Information  Culture and cultural values  Markets  Labour  Suppliers, materials, services  Public infrastructure  Technology  Government, laws and regulations  Competitors

Friend or Foe?

- Environmental influences are mostly neutral and indifferent to a business

- The value that the environment attributes to the products/services has to exceed the

value of all resources transferred out for a firm to be successful

Opportunities: factors that enable the firm to have profitable exchanges of resources

Constraints: limits the opportunities or are factors that work against the firm e.g. government

regulations and competitors

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- Gaining competitive advantage may depend on having complex relationships with the

environmental influences but, these complicated interactions can be destroyed

especially if things are changing too quickly

How does the external environment influence the management of the firm?

- The way a firm operates internally to be successful depends on the synergistic

relationship of resources

Synergy: the most effective arrangement of resources

- requires identifying and directing resources within the organization for optimal

efficiency and effectiveness

Management and synergy:

- Identifying, maintaining and improving synergy of resources of a firm is the job of the

general management level and a key component of successful business

- Very little can be done by one person so hierarchy of managers perform the

management functions to maintain effective external interactions and to keep internal

resources synergistic

Example – External environment: - Using the example of a restaurant

- Changeable environmental factors that need frequent attention include: customer

preferences, quality, variety and price of food supplies and selection/pricing of

o petito ’s food et . - Stable environmental factors include: government regulations (laws), local

infrastructure (traffic patterns etc.), social order etc.

- Having customers depends on their experience (internal synergies) e.g. how they are

treated when they first enter, cleanliness, menu selection, quickness of food, quality of

food etc. are examples of the restaurant interacting with the environment

- A customers experience with a competitor plays a role in deciding if they return to you

therefore, o itor the co petitor’s e viro e t

Example – Internal resources: - Staff including food purchasers, cooks, dishwasher, server, cleaners etc.

- Qui k ess of se i e a d food a i al depe ds o : aite ’s t ai i g, ti el t a s issio of order details, having the required ingredients and a process that allows for easy

preparation

- Internal resources have to work together and if any of these links are broken then the

goal o ’t e a hie ed - Middle management improves communication among company

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Conclusion:

- Management is critically important to the performance of the organization – the do ’t only assist but are directly responsible for the synergy

- Managers has to have an understanding of how the optimal interactions of resources

are to be attained

- It is important for them to know the resources their subordinates work with to manage

them and achieve synergies for success

Module 2:

Responsibilities of Management:

- Managers are responsible for achieving effectiveness for human and non-humane

resources

- General manager > managers > subordinates

- Su o di ates a e eeded / a age s a ’t a age all the esou es

Resource Effectiveness:

- Ma age & su o di ate’s espo si ilit does ’t see so diffe e t f o esou e effectiveness point of view

- Both contribute to synergy by working effectively with their resources

- Ma age ’s tasks a e o e de a di g / the ha e o e espo si ilit ut subordinates can also have demanding jobs

Management Challenges:

- As the number of resources decreases, the more likely the performance and function of

these resources will change

- Necessary for managers to change the way resources interact to optimize effectiveness

Sources of Change:

- Human resources is the most prone to change

- The sources of the change include:

 E plo ee’s adjusti g to ha ges i the o -human resources that they supervise  E plo ee’s f e ue t ha ges i pe fo a e e.g.

o Motivational levels

o Ability to perform different tasks

o Harmony or conflict with peers

o Distraction on the job

Achieving Managerial Effectiveness

- Activities include:

 Planning  Organizing

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 Leading  Controlling

Managerial Planning:

- The process of formulating the goals that the manager will try to achieve

- These goals are related to their area of responsibility

- Middle management: these goals may be established elsewhere in the hierarchy and

communicated downwards

- The goals ep ese t the o t i utio eeded that a age ’s u it to the o e all organizational goals

- General management: use i fo. f o the e te al e i o e t ( hi h offe ’s opportunities) and from internal resources (strengths + weaknesses of resources that

inform the appropriate selection of opportunities) to formulate goals

Goals:

- Goals a e the a ea he e a age s do ’t ha e di e t o t ol o e - Ma age ’s supe ise the o k to a hie e the goal hi h a e the di e t a tions used to

achieve an indirect result

- A a age ’s su ess is easu ed thei su ess o failu e with the goal

Management by Objective (MBO):

- Popular method for assessing and supervising managers by setting intended levels of

accomplishment

- Includes establishing policies + procedures  to accomplish goals  then to figure out the reason for underachievement

- This recognizes actually accomplishing the goal is what matters most

- Every departments accomplished goal contributes to the corporate goal

Managerial Planning:

- Provides general directions on how the resources are to be used to reach the goals

- Poli does ’t i lude e e thi g eeded to e do e

Example:

- If the restaurant decided they wanted to offer a take-out service, the first step would be

1. Information gathering: demand for service, what products at what price, the

capacity of calls they could take etc.

2. Set goals: concerning quantity served, maximum wait time, how service will be

accomplished, establish budgets etc.

3. Outline of policies and procedures: how the goals would get done

Organizing:

- Establishing detailed work plan of the task to be done and involves;

 Establish decisions to be made/when they are to be made/who makes them  Creating decision policies so it can be used for routine situations  Establishing communication and coordinating links among people

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 Creating work procedures for subordinates  Referred to as implementation stage of a plan and the success is dependent on

Leading:

- Process where human resources are motivated to perform their tasks

- Human resources have more complex needs than any other resources; people have life-

time needs that go beyond specific job but which can influence behaviour on the job

Leading and Human Resources:

- Mix of task requirements, competence and motivation by the manager to promote an

effective task environment

Leading Effectively:

- Two occasions where leading is very important

 When a project is started  When performance is assessed

Controlling:

- Awareness:

 Comparing performance with pre-established standards  Comparing how tasks were performance with pre-established policies

- Diagnosis:

 Assessing reasons for achievement  Evaluating of influence of work plan on the level of performance

- Correction:

 Tries to correct variances in performance through diagnosis of policies/procedures

- In every phase, leadership is involved

- Proper control is needed to achieve desired performance

Links of organizational effectiveness:

- A defect in any of the four functions CAN’T be compensated for by doing more in another function – they are all equally important

- Organizational effectiveness is achieved when all four are strong

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Management: HRM 3930 – Week 1

Chap. 2: Environmental Challenges

Module 1: The Nature of a Orga izatio ’s E iro e t

The Environment:

 A successful organization must be aware of their environment and the exchange of resources need to be done in a way for the organization to meet its goals

 The orga izatio a ’t o itor/i tera t ith the entire external environment; only engages with a small part that it has more frequent interactions with

Environmental Components:

 Organization o General factors:

- Labour force

- Technology knowledge

- Social and cultural values

o Specific factors:

- Suppliers

- Interest groups

- Regulators

- Competitors

- Markets

Resource Interactions:

 An exchange of resources including tangible ones (raw materials, money etc.) and intangible resources (info., societal value etc.)

 General factors involve an exchange of info. with organizations and flow into the organization e.g. social and cultural values influence HR policies

 Some factors directly affect the organization directly and others interact with the other factors and indirectly affect the organization; both can affect the performance

Adapting to the Environment:

 Requires the organization to structure its internal resources and adjust to have profitable resource exchanges with external environmental factors

 Have to have good info. about direct and indirect factors

Interactions and Organizational Performance:

 E.g. if a competitor gets a better price from the supplier, they’ll e a le to sell the product to their customer for cheaper therefore affecting the organizations customer

base

 Indirect interactions equally important as direct interactions; can have a significant impact on organizational performance

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The Environment and The Organization:

 Useful for a orga izatio to k o hat e iro e t halle ges it’s fa i g o This knowledge can help determine how many resources would be needed and if

it’s possible to predict the results of new initiatives  The difficulty that the environment presents (which can affect the organizations ability

to adapt) can be assessed by examining:

o Complexity: determined by – - The number of factors with the potential to affect the organization

- The degree of similarity or dissimilarity between these factors

e.g. investment advisors: although they have a large number of

investments to monitor, the complexity is low b/c of similarity of

environmental factors – they monitor similar factors e.g. buyer for a department store: may have a large diversity in sources of

info. on what products to buy therefore complexity is high

o Turbulence: the tendency for an environment to change; therefore, affects the

amount of resources the organization should be allocating

- Consists of 2 types:

 Systematic turbulence: when change in one part of the environment is an accurate indicator for the type of change in

another part of the environment

e.g. If new car sales are down, we can assume that used car sales

and car part sales increase due to this

- Little monitoring can provide a lot of useful information

 Diverse turbulence: monitoring one part of the environment does ’t gi e i fo. o er i g the other parts - Puts a strain on monitoring resources and the ability of the

organization to adapt

- Reasonable adaption is not reasonable in this environment b/c

it can change before even gathering all the necessary info.

e.g. rapid, unpredictable changes with the internet

Module 2: Monitoring the Environment

Management and Effective Environment Monitoring:

 Managers monitor/receive info. from the environment and also provide info. to it but it is ’t the o ly type of i tera tio it has ith the e iro e t

5 Steps to Monitoring the Environment:

1. Identification of factors to be monitored: a demanding task at the strategic

management level than the operational level manager

- Operational managers are able to identify the factors related to their area

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- What needs to be monitored?

o E iro e t fa tors that a ha e a i pa t o the operatio s i the a ager’s area

o I fo. that does ’t alter eha iour of the orga izatio does ’t ha e alue - Mo itori g is ’t as easy / i fo. is updated a d de elop e ts a o ur

2. Prioritization: prioritize the list of factors that were identified in step 1

- Prioritize factors based on:

o Critical importance – The factor with the most likelihood to affect the orga izatio ’s perfor a e

o Likelihood of the factor to change

o Orga izatio ’s a ility to influence the factor (top of the list if organization has no ability to change it)

3. Method of Monitoring: find the source of the required info. that provides the best

combination of quality and cost

o Quality: means the info. has precision (depth of detail provided) and accuracy

(degree to which info. is correct)

o -Cost of gathering the info.

- Different needs require different qualities of info.

- Higher quality = less likely that’ll e pro ided through pu li sour es & ill eed expensive private sources

4. Frequency of Monitoring: match the frequency of monitoring with the frequency of

changes

- High quality info. requires more effort and expenses

- Frequency of monitoring = 2N, where N is the change frequency

- I fo. that does ’t ha ge eha iour does ’t add alue o But if frequency of change is consistently greater than the frequency of

response; organization should look to respond faster to the changes

- If a e iro e t fa tor is u dergoi g rapid ha ges, it does ’t e essarily ea a proportionate increase in the frequency of monitoring

5. Environmental Monitoring Budget: formulate the ideal monitoring plan based on the

previous 4 steps

 Identify the resources needed to execute the plan (along with expenses and people hours)

 Total commitment of resources must be reasonable and balanced  Planned objectives have to be compared to actual performance of the organization and

monitoring plan must be changed accordingly

 Organization has to show that the environmental info. can be translated into behavioural changes

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Management: HRM 3930 – Week 3

Chap. 3: Organizational Culture and Responsible Management

Module 1: Categories of Behaviour

Unconscious vs. Conscious Behaviour:

Unconscious: many of our everyday behaviours are unconscious ones; not easily influenced to

behave differently

Conscious: behaviour that we are aware of/what we could be aware of if we pay attention to it;

what we could change if motivated to do so

Behaviour:

- Divided into 3 categories:

Conventions and customs: the way we are normally expected to behave in the view of the

society

- Ideally, the superset of all 3 categories; no way moral and legal behaviour can now be

contained in conventional behaviour

- Moral and legal behaviour may be very similar but customs/conventions can be very

different in within societies

- A lot of our behaviour is dictated by convention and custom behaviours

Moral behaviour: convention behaviour that is important to the functions of society move up

to moral behaviours

- Involves being truthful in dealing with others

- MOST moral behaviours can be contained conventional behaviours but not totally e.g.

telling a white lie about being sick to avoid a meeting

Legal behaviour: includes the conventional and moral behaviour is important to the functioning

of society; enforced by law

- Ordinary lie may be immoral but lying in a business contract can be illegal

- Not all behaviour that is legal is considered moral or can be accepted by our society;

some behaviour lay outside the circle e.g. exceeding the speed limit by any amount is

illegal, ut e eryo e that dri es o the high ay k o s it’s usto ary to dri e o er the limit; only certain excessive speeds are immoral

Behaviour: The 3 categories will never be concentric especially in a heterogenous one

 If too much of the legal circle lies outside of the others, it shows many laws are not respected a large part of society; causes social disorder

 Social disorder can be countered by: o Authoritarian government to enforce order; severe penalties for unlawful

behaviours causes involuntary changes in behaviour

o Society perceiving a change in government is creating social order that will

benefit the population; causes voluntary changes in behaviour

 Anarchy – Rule of non: worst scenario is when conventional behaviours are perceived as immoral and illegal, but necessary

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o Society has broken into small hostile groups and people defend their own

interests

o Using requires military force to coerce society into compliance

Module 2: Managerial Behaviour

Behaviour Within Organizations:

- Customary behaviour in organization is a subset of societal behaviour

- Organization selects certain behaviours from the broader society and excludes others;

necessary when considering the nature/purpose of an organization

Mission and Vision:

- Represents the values and the intended state of affairs that govern the current activities

of the organization within its external environment

Vision statement: briefly describes the desired future state of the organization

- Not action oriented; focuses on the desired future state of the organization

Mission statement: describes HOW the organization conducts its activities while seeking to

satisfy its’ isio Policies and Procedures: although orga izatio ’s ha e poli ies a d pro edures, there’s al ays a requirement for individual and group decision making

- Policies cover most of the reoccurring situations but not all

- Lack of autonomy will demotivate individuals looking for a challenge/personal growth

Internal Purpose of Mission and Vision:

- Decisions affect how local tasks are performed and the performance of linked tasks

performed elsewhere in the organization

- Large number of decisions should be made autonomously

Beliefs and Values: strongly influences decisions

- Similar decisions will be made throughout the organization when common beliefs and

values guide autonomous decision-making

- Leads to organizational culture

- Achievement of overall organizational goals

Mission and Vision – Lower Levels: - Measurements must be established and communicated to employees to ensure their

a tio s are i li e ith the orga izatio ’s issio a d isio - Corporate culture infuses employees with the values of the organization, enabling

consistent decision-making

Organizational culture: a subset of the customary values of society that surrounds it

- Firms choose policies from alternative behaviours in line with their values and mission

to achieve synergy and high performance

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Personnel policies: manager should discuss policies and practices and allow the group

subculture to evolve a framework of values within which autonomous decision-making will be

made in the appropriate way

- Employee participation varies with the type of job

- E po er e t does ’t e essarily lead to jo satisfa tio

International perspective: he usi esses try to go i ter atio al, they a ’t use the sa e practices b/c customs and conventions differ

Immoral behaviour: organizational customs generally should NOT immoral behaviour, even

though it ay e i luded ithi so iety’s o e tio al eha iour - Society can tolerate mild degrees of immorality

- White lies will affect the performance of an organization

- Inaccuracy of info. will compromise the synergy b/c accuracy of info. is critical to

performance e.g. overstating expenses is perceived as customary illegal behaviour, not

morally illegal behaviour but could lead to severe consequences

Whistle Blowing: severe illegal behaviours by firms can be the target of whistle blowing

- Employee(s) who go public with the illegal behaviour b/c they experience conflict with

their personal values

- Managers must go public to revel the behaviour even though it is unpleasant and

threatening

Ethical Behaviour:

Ethics: the application of morality to a specific set of behaviours

- Set of rules that apply to certain situations that come up regularly in day-to-day work,

instead of thinking about the morality of behaviours

- Provides firm guidelines on how to behave

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Management: HRM 3930 – Week 4

Chap. 4: Planning

Module 1: The Nature of Planning

Planning: failure of planning is a result of it not being done well

- E.g. Planning what stores to shop from, planning what to wear the next day etc.

- Plans may be made but they could be bad plans or executed poorly

Purpose of Planning

- Planning is important b/ the mission and vision statements are general which lack the

details required to achieve the goals

- The e ea t to i flue e auto o ous de ision-making - O ga izatio efe s to a predictable arrangement of resources e.g. a detailed plan that

differentiates them from just a random crowd of people

Advantage of Planning

 Orga izatio s would ’t e a le to fulfill a y purposes without pla i g - Bette pla i g ea s the ll e o e likel to a hie e its pu pose - Plans produce extensive foundation for purpose to be achieved

 No set formula for success; meaning improvements in training can be obtained by e a i i g hat as a hie ed/ hat as t a hie ed and diagnosing the reason for those outcomes

- Diag osis is i po ta t ut i possi le ithout a pla ; a t dete i e hi h poli ies a d p o edu es failed if the did t ha e a set o es to egi ith

e.g. Creating a studying schedule/plan when you have many exams around the same time

Disadvantage of Planning

 Implementation of the plan is the greater challenge - Good implementation can make a decent plan work. Poor implementation can make the

best plan fail

 Lingering over the planning stage can be dangerous  Planning can create rigidity in the organization - People a o ti ue to follo the pla e e he it s faili g si pl / it IS the plan

Goal Displacement: a substitution of routine policies for the actual goals that overthrows the

purpose of the organization

- Good plans need to adjust to changing conditions; individuals need to have a willingness

to rework the plan

Disadvantage of Separating Planning and Doing

 Dow fall whe the pla ers are ’t the doers - After the plan is established and is about the to be implemented, the planning person is

no longer involved

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- Leads to 2 problems: all plans need to reflect the human needs of those involved in the

implementation

- Needs to address extrinsic and intrinsic motivational factors

 Creator’s of pla s are ore o itted to the pla s tha those who’s the pla is imposed upon

- Uncommitted individuals can be motivated by involving them in at least the

implementation process

Rotating Planners and Doers

- Idea with potential but lack of continuity in management may lead to managerial

difficulties and a disconnect from the long-term success of the organizational unit

- Important to involve planners in the implementation of what they plan

Modules 2: Planning Steps for Managers

Management and Planning

 General managers: planning begins with review/modification of mission and vision statements

- Planning may be for the current period of for the long range of 2-5 years

 Middle and lower level managers: mainly responsible for planning for the current period and missions are pre-established

- These managers plan for their own organizational unit but still impact the overall

strategy

Steps of Planning

1. Obtaining info. relevant to what could be accomplished

2. Assessing the info. and setting goals

3. Assessing which policies/procedures need to be established to accomplish those goals

4. Analyzing/determine what needs to be done to remedy gap between current

resources/policies and the new ones need to implement the plan

Information Gathering: pu pose is to e su e the ole of the a age s u it a eet e expectations and the goals for it are reasonable

- Management by Objective (MBO): objectives will be negotiated between adjacent

levels in the hierarchy and the o e all o je ti e fo the e ti e o ga izatio a t e obtained until all negotiations are concluded

 Management must consider the following: - Assess the past resources and past performance levels

- Considers what other resources could be obtained

- Current way that resources are combined and utilized

- Project most effective ways that the current and new resources could work together

Goal Setting Process (planning can begin after this step if a centralized organization already

specified its goals)

 Set goals that include the following characteristics

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- Covers all result areas of the organizational unit

- Attainable and challenging

- Coherent as a group

- Includes a means of measurement

 Goals: the result that the organization strives to achieve - Organizations structure themselves internally in a way to entice the environment to

engage in favourable interactions, therefore meeting goals; indirectly achieved

- Policies and procedures: the ways in which resources are used to accomplish goals

- Can be accomplished directly either in one step or many

- Qualitative goals: describes a desired future state of affairs

- Quantitative goals: o je ti es that suppo t ualitati e goals p o idi g a ea s of measuring how well the future state of affairs is being achieved

- Without ualitati e goals, it s ot as lea as to hat the o e all ai is - Without quantitative goals, it would be harder to measure the progress

Quantitative Goals (Objectives): must – - Be specific

- Be stated in quantitative terms

- Include a specific time frame for accomplishment

- It will be clear on whether the objectives have been met

- Cover all the key result areas

- Be attainable and challenging (for proper motivational environment)

- Be coherent (should be possible to accomplish them all)

- Be arranged in a hierarchy (necessary to know the ranking of importance among them)

Performance vs. Reality: A Trade-Off

- Whe de iatio s of the pla o u , the e eeds to e a a of de idi g hat s o e important

- K o i g hat s highe i the a he a determine which trade-off should be made

What Also Needs to be Included in Planning

- The a age s espo si ilit to i ple e t the poli ies a d p o edu es a d to e su e o a day-to-day basis that they are being achieved

 Identification of the direct steps/major policies needed to achieve planned goals; may include major changes such as:

- Structural changes

- Communication changes

- Decision-making changes

- HR changes

- These changes are outlined in moderate detail during planning and outlined more

detailed in the organizing stage

Analyzing and Determining Corrective Actions

- A plan with only goals would be hard to correct if downstream performance is lacking

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- If pla i g stops afte defi i g the goals, it s o e likel that insufficient attention is gi e to hat adjust e ts eed to e ade the efo e, the e ot ade

- Without proper modifications and controls there will be no changes made

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Management: HRM 3930 – Week 4

Chap. 4: Planning

Module 1: The Nature of Planning

Planning: failure of planning is a result of it not being done well

- E.g. Planning what stores to shop from, planning what to wear the next day etc.

- Plans may be made but they could be bad plans or executed poorly

Purpose of Planning

- Planning is important b/ the mission and vision statements are general which lack the

details required to achieve the goals

- The e ea t to i flue e auto o ous de ision-making - O ga izatio efe s to a predictable arrangement of resources e.g. a detailed plan that

differentiates them from just a random crowd of people

Advantage of Planning

 No set formula for success; meaning improvements in training can be obtained by e a i i g hat as a hie ed/ hat as t a hie ed and diagnosing the reason for those outcomes

- Diag osis is i po ta t ut i possi le ithout a pla ; a t dete i e hi h poli ies a d p o edu es failed if the did t ha e a set o es to egi ith

e.g. Creating a studying schedule/plan when you have many exams around the same time

Disadvantage of Planning

 Implementation of the plan is the greater challenge - Good implementation can make a decent plan work. Poor implementation can make the

best plan fail

 Lingering over the planning stage can be dangerous  Planning can create rigidity in the organization - People a o ti ue to follo the pla e e he it s faili g si pl / it IS the plan

Goal Displacement: a substitution of routine policies for the actual goals that overthrows the

purpose of the organization

- Good plans need to adjust to changing conditions; individuals need to have a willingness

to rework the plan

Disadvantage of Separating Planning and Doing

 Dow fall whe the pla ers are ’t the doers - After the plan is established and is about the to be implemented, the planning person is

no longer involved

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- Leads to 2 problems: all plans need to reflect the human needs of those involved in the

implementation

- Needs to address extrinsic and intrinsic motivational factors

 Creator’s of pla s are ore o itted to the pla s tha those who’s the pla is imposed upon

- Uncommitted individuals can be motivated by involving them in at least the

implementation process

Rotating Planners and Doers

- Idea with potential but lack of continuity in management may lead to managerial

difficulties and a disconnect from the long-term success of the organizational unit

- Important to involve planners in the implementation of what they plan

Modules 2: Planning Steps for Managers

Management and Planning

 General managers: planning begins with review/modification of mission and vision statements

- Planning may be for the current period of for the long range of 2-5 years

 Middle and lower level managers: mainly responsible for planning for the current period and missions are pre-established

- These managers plan for their own organizational unit but still impact the overall

strategy

Steps of Planning

1. Obtaining info. relevant to what could be accomplished

2. Assessing the info. and setting goals

3. Assessing which policies/procedures need to be established to accomplish those goals

4. Analyzing/determine what needs to be done to remedy gap between current

resources/policies and the new ones need to implement the plan

Information Gathering: pu pose is to e su e the ole of the a age s u it a eet e expectations and the goals for it are reasonable

- Management by Objective (MBO): objectives will be negotiated between adjacent

levels in the hierarchy and the o e all o je ti e fo the e ti e o ga izatio a t e obtained until all negotiations are concluded

 Management must consider the following: - Assess the past resources and past performance levels

- Considers what other resources could be obtained

- Current way that resources are combined and utilized

- Project most effective ways that the current and new resources could work together

Goal Setting Process (planning can begin after this step if a centralized organization already

specified its goals)

 Set goals that include the following characteristics

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- Covers all result areas of the organizational unit

- Attainable and challenging

- Coherent as a group

- Includes a means of measurement

 Goals: the result that the organization strives to achieve - Organizations structure themselves internally in a way to entice the environment to

engage in favourable interactions, therefore meeting goals; indirectly achieved

- Policies and procedures: the ways in which resources are used to accomplish goals

- Can be accomplished directly either in one step or many

- Qualitative goals: describes a desired future state of affairs

- Quantitative goals: o je ti es that suppo t ualitati e goals p o idi g a ea s of measuring how well the future state of affairs is being achieved

- Without ualitati e goals, it s ot as lea as to hat the o e all ai is - Without quantitative goals, it would be harder to measure the progress

Quantitative Goals (Objectives): must – - Be specific

- Be stated in quantitative terms

- Include a specific time frame for accomplishment

- It will be clear on whether the objectives have been met

- Cover all the key result areas

- Be attainable and challenging (for proper motivational environment)

- Be coherent (should be possible to accomplish them all)

- Be arranged in a hierarchy (necessary to know the ranking of importance among them)

Performance vs. Reality: A Trade-Off

- Whe de iatio s of the pla o u , the e eeds to e a a of de idi g hat s o e important

- K o i g hat s highe i the a he a determine which trade-off should be made

What Also Needs to be Included in Planning

- The a age s espo si ilit to i ple e t the poli ies a d p o edu es a d to e su e o a day-to-day basis that they are being achieved

 Identification of the direct steps/major policies needed to achieve planned goals; may include major changes such as:

- Structural changes

- Communication changes

- Decision-making changes

- HR changes

- These changes are outlined in moderate detail during planning and outlined more

detailed in the organizing stage

Analyzing and Determining Corrective Actions

- A plan with only goals would be hard to correct if downstream performance is lacking

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- If pla i g stops afte defi i g the goals, it s o e likel that insufficient attention is gi e to hat adjust e ts eed to e ade the efo e, the e ot ade

- Without proper modifications and controls there will be no changes made

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Management: HRM 3930 – Week 5

Chap. 11: Organizing

Module 1: Establishing the Task and Structure

Organizing

- Identifying which tasks will help achieve the goals established in the planning phase

- Arranging the resources to achieve highest effectiveness

Steps to Organizing

1. Establish necessary tasks/functions

- Introduce sales force to product; transferring product knowledge and method of selling

it to their customers

- Provide incentives to sales force to motivate them to sell the new product

2. Group the resources optimally to obtain synergistic interactions

- Use of temp. sales team is most efficient and effective use of resources

- Allocate incentive resources

3. Establish goals, responsibilities, procedures and rules – form job descriptions - When those are accomplished, the structuring aspect of the organizing function is

complete

Module 2: Effective Structures

Principle of Structure

 Restricts the size of any organizational unit - Structures that place too many people in an undifferentiated organization unit are

unmanageable in terms of accomplishment of specific tasks

 The resources to be placed within the organizational unit need to be close to each other to have synergy

- Resources that detract f o sy e gy should ’t e pla ed togethe

Span of Control

- Nature/type of supervision determines the number of subordinates

- Limits the size of any basic organizational unit to 7 – 10 people, including supervisor - Decentralized leadership structure: authority being delegated to the subordinates to

make their own decisions then span of control of 9 is possible

- Centralized leadership structure: decision making authority solely by the leader would

require smaller span of control limited to 6 people

Chain of Command: line of authority that extends from the top manager to the lowest level

employee

- Choice is between a tall pyramid or a flat pyramid b/c chain of command requires that

shape

- It must always be active

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 Impossible to fully contain all the resources that need to interact frequently within a single work group; fortunately, not all resources that interact need to be grouped

together

 People do ’t eed to e i the sa e o kg oup / of epetiti e a d outi e atu e of the interaction

- 2 types of resource interactions that always require to be in the same work group

Physical Interactions: e.g. when 2 people are working on the same production equipment

- Cooperation between employees is intense and their work is dependent upon each

other

- Supervised by the same manager

Frequency of Interaction: when people must work in close collaboration and when the content

of thei f e ue t i te a tio s a ’t e dete i ed i ad a e - Work requires face-to-face communication and is supervised by the same manager

Human Resource Interactions

- Ones that have a lower requirement to be in the same work group

- As the interactions involve communication rather than physical work, the frequency

decreases, or the content is more routine then the distance between employees can be

increased

- Supervision may be done by different managers

- If these employees were put into the same work group, most of their interactions would

be dysfunctional/detract from synergy

Functional or Product Oriented Structure

 Functional centered: difficult to assign accountability for product performance; both are group together under the same manager

 Product centered: dupli atio of fu tio al esou es / they’ e i sepa ate u its

Matrix Organization

- Developed to deal with the issues with both structures

- Vertical reporting relationship that is functionally centered

- Horizontal reporting relationship that is product centered

- Gains advantage of product line accountability and functional efficiency

- C eates u e ous elatio ships that a e ’t p ese t i the si ple st u tu es - Supervisory instructions can become contradictory b/c employees are being supervised

by functional manager and product line manager

Matrix Structure

- Functional and product line managers interact frequently in permanent groups to

coordinate joint supervisory efforts

- Ma age s ho’ e o ked i this st u tu e epo t spe di g u h of thei ti e i meetings resolving conflicts

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Management: ADMS 3930

Week 7 – Communication

Module 1 – Basic Considerations

Communication:

- An essential organizational process and making it more effective when it is needed is a

good thing

- Most common form of resource interaction and can lead to dysfunctional or functional

interactions

- Richer, higher quality communication does not always lead to more effect

organizational processes

Communication and Information:

- Although communication and the exchange of info. involves transmission of the same

intangible resources, they are treated differently

- Info. flow is an integral part of communication

External Communication:

- I this le tu e, it does ’t o side he the flo is i to/out of the e i o e t a d associated with product/service that the organizational provides to external sources

- Most common form of interaction found in an organization

Example:

Point of sale cashier and a stock purchaser – stock purchaser monitors the flow of sales at a workstation to ensure stock meets purchasing patterns of customers

- Located at some distance from each other and data passed from cashier to the

purchaser

• Frequency of interaction: HIGH • Content of interactions: REPETITIVE AND ROUTINE • Communication: ONE-WAY AND AUTOMATED

- If they worked next to each other: putti g the pu hase ’s desk at the f o t he e the cash register is would be odd

- Communication channel would be more rich and they would directly speak to each

other

• Frequency of interaction: HIGH • Content of interactions: REPETITIVE, ROUTINE PLUS SOCIAL • Communication: TWO-WAY AND VERBAL

Satisfying Social Needs:

- High on the list of extrinsic motivational benefits that create a pleasant work

environment

- Employees that have that need satisfied will generally perform better but too much

social needs creates ineffectiveness and offsets motivational benefits

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Richness is Not Always Key:

- Co u i atio that does ’t ha ge eha iou to a ds a o plish e t of goals has o benefit

- These rich communicational channels between employees is dysfunctional

Optimal Communication:

- Combination of the correct frequency, accuracy, precision and richness in the channel

- Richness refers to the capability of the channel to handle more than one channel of

communication

- Cha els that a e ’t i h a e efe ed to as thi - E.g. text email only sends words and does so one way at a time – one-way, thin channel - E.g. phone conversation adds tones that applies additional meanings and offers

capability for feedback – two-way channel - E.g. face-to-face conversation, richest channel, adds body language and expressions

SEEK OPTIMAL QUALITY OF COMMUNICATION – NOT THE HIGHEST

Benefit vs. Quality:

- Benefit increases as the quality increases but it eventually levels off because quality will

fail to reach its effectiveness

- Cost needs to be considered to find the optimal point b/c the cost of communication

ha el a ’t e eed the e efits

Categories of Cost:

1. Direct costs: time of people + cost of operating equipment, supplies and services that

would be needed to maintain communication

2. Opportunity costs: equipment, money, services and HR that would be used for the

o u i atio p o ess that ould ’t e a le to e used at the same time

Cost of Communication:

- Cost of info. increases as quality of communication channel increases – but it cannot increase infinitely

For every purpose, there is an optimal quality of communication – above or below that, organizational performance would suffer to some degree

Module 2 – Optimally Effective Communications

Example: Survey given to customers for new product design ideas, the product design groups

wants to inform 3 designers of the results so that their designs reflect the preferences.

- Manager wants to provide the info. then follow up in 1 week to see what initial ideas

the designers have, to expand on their products

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Elements of Communication

• Purpose/Intent of Communication: what is the communication trying to achieve? - Must positi el affe t a o ga izatio ’s ope atio s - Abstract idea/policy that is usually not directly communicated – content is hat’s

communicated

Example:

• Medium of communication: Discussion board – Content: Results of the survey • Medium of communication: Meeting – Content: Results of the survey, initial

suggestions (would become much richer), but manager might want to avoid this

because he wants designers to come up with their own ideas

• Optimal quality of communication is achieved by the thinner medium, the discussion board

Very Thin Medium of Communication:

• Cost reduction • Benefits may be reduced • Risk of misinterpreting the content of the message • Does not allow for rapid feedback if needed

Rich Medium of Communication:

• Suitable for unstructured group collaborations • Suitable when nature of content cannot be preplanned • Benefits from both verbal and non-verbal communication

Communication and Chain of Command:

- If the sender is in an authoritative relationship with the receivers, the ’ e o e likel to pay attention to the communication, to decode the content and interpret the purpose

of the communication positively

Communication in Workgroups:

- Social links can be as strong as a motivator to pay attention to the content and purpose

of communication as chain of command is

- Members of a social group automatically build social links that enhances their

communication

Example: How do we know the survey results will produce the desired effects?

- The designers are frequently receiving similar types of info. – the repetitive context helps them to incorporate the info.

Filtering: The attitude and the attention of the receiver is applied to the message and

influences the way it is decoded

Example:

Accuracy: Needs to be high – the survey should reflect market preferences Precision: Low – quantitative information is not required for the designers

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Flow of Communication:

- Disadvantage for many organizations is the communication that flows upward in the

hierarchy

- Disadvantage may be overcome if the communication upward is in response to a

downward communication by a superior

- Problem: for a subordinate to initiate communication that would survive up the

hierarchy – need to set up a separate channel of communication independent of the chain of command

Legacy Communication:

- Periodically, the quality and existence of every communication needs to be questioned

i ase its ualit does ot at h its pu pose o does ’t ha e its pu pose a o e

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Management – ADMS 3930: Week 7

Management Control

Module 1 – The Purpose of Control

Management Control: Resources + Policies = Optimal Strategy

- Many possible combinations of goal selection, resource allocation and resource

interactions

- Not possible to identify best one from training and experience alone

Goals: should be challenging, attainable and consistent

- Goal for organizational unit may be the wrong set of goals – it may not be the optimal goal for the unit to fulfill its goal in the organization

Selection of Resources: set of resources chosen may not be the best choice b/c – they are ’t as well known as they need to be or the combination of them may not be as competent

Resource Interactions: the way resources interact with each other – difficult to organize the resources for optimal effectiveness

Synergy: requires precise selection, arrangement and interaction of resources

- Small departure from synergy can cause large departure from desired performance

Management Control and Optimization: no formulas for optimization – combination of knowledge, experience, review of planning and organizing are necessary to approach optimal

performance

Module 2 – The Process of Management Control

Optimizing: done before the control function; planning and organizing functions have been

implemented and trying to achieve goals

- Only possible to improve the plan where there is knowledge of what was intended to be

done and what was done

- The greater the deviation from the plan, the harder it is to improve it

Process of Control – 3 Logical Steps: Process of Control – Awareness:

1. Awareness: what was intended to be done vs. what was done – centered on goals - If goals are accomplished, then the unit’s purpose is fulfilled • Identify the goal – determine if it was achieved, under-achieved or over-achieved • Look at the resources and policies – were they allocated as intended? Include info. on

the gap between what was intended and what happened

• Repeat process with each departmental goal

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Process of Control – Diagnosis: 2. Diagnosis: critical stage – reasons for level of achievement attained • Attempt to use info. from awareness stage to reach conclusions concerning

performance

• Generic Diagnosis: a logical conclusion based on that info. • Accept or reject the generic diagnosis – if rejected, an alternative diagnosis should be

suggested

• Almost always a generic diagnosis regardless if goals were attained or not - No diagnosis when there is no plan or when the plan is not implemented

- This stage must be completed at the lower level before it can be properly performed by

next level of management – diagnostic info. is passed up the chain of command

Process of Control – Correction: 3. Corrections: to improve performance; only corrects what the diagnostic stage identifies

as needing correction

• Suggested corrections: require approval from upper management to approve changes, - Upper management evaluates the suggested corrections to ensure that it is in line with

co pa y’s issio - Must ensure that implementation of changes would not cause dysfunction or

contradictions

• Challenge: integrating the suggested corrections into the planning and organizing functions of the next period – next period will always change from the current period

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Management: ADMS 3930 – Week 8

Project Management

Module 1 – First Principles Project vs. Operational Work:

- All organizations can divide their daily work into 2 areas:

- Operations: the work done on a day-to-day basis to keep the organization going

- Projects: specialized work

- Both are temporarily and eventually finish and are performed by people that work

within the organization

- Constrained by limited resources e.g. time, resources, skills

Operational Work: Day-to-day activities e.g. cashiers making sales, finance role,

administration role, maintenance etc.

Project Work: To either fix a problem or to take advantage of a business opportunity

Definitions – Projects: can be any size and can be undertaken at all levels of the company and is linked to the

orga izatio ’s usi ess strategy - Unique venture with beginning and an end, carried out by people to meet a specific

objective within parameters of schedule, resources and quality

- Triple constraint: 3 parameters of projects – the amount of time, money to be allocated and scope (the work of the project)

- You a ’t ha e a proje t that is good, fast a d heap Project Management: set of processes, systems, tools and techniques for effective planning

and control of projects

Stakeholder: those who have an interest in the project as it is ongoing or in the result of the

project – 2 groups: • Stakeholders internal to the organization: top management (authorizer): decides if the

firm takes on a project

- Project sponsor/client: is the key decision maker on the project

- Project team: people who participate in the work of the project and create the product

- Project manager: primary role is organizer; they plan and organize and makes sure the

work is done smoothly

- Ensures the team works together and is the people manager

• People/organizations external to the company: e.g. 3rd party suppliers, governments, financial institutions etc.

Module 2 – Roles That You Play Project Manager: anyone at any level in the organization can be a project manager; it is a

learned skill set

- Larger projects require project managers with more experience

Sponsor: provides funds and resources for projects

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Resource Manager: provides skilled people to projects e.g. a new project might need an analyst

who is familiar with how accounts payable process

- May also provide project managers to projects in their own area or others across the

company

- Pro ides support to their staff hile they’re o proje ts e.g. liste to the o er s of the staff

- Protects the project environment from factors that could decrease the chance of

successful completion

Subject Matter Expert: a passive participant in the project; called upon to give advice or info.

based on their own experiences

Stakeholder: must be aware of projects in the company and how they might influence the

department or the staff

There are a y roles that you a play ut it’s i porta t to re e er you a o ly play o e role at a time

Module 3 – How a Project Flows - All projects follow a common pattern, called a life cycle; as one phase finishes the next

one starts

Life Cycle: Phases:

• Feasibility: starts with a feasibility study or business case – organization considers if they should be doing the project

- Work may include cost-benefit analysis, identification of business objectives etc.

• Requirements: info. gathering phase – info. is then used in the next phase • Design: determining what the solution of the project will look like • Build: the design/result needs to be built • Test: the design needs to be tested; includes individual component testing and

integration testing

• Launch: solution is implemented after all tests have been conducted; implementation involves the work to transition the design from project mode to day-to-day activities

mode

These steps a y le arou d ultiple ti es, does ’t e essarily happe o e

Project Management Process Groups:

Initiation: getting the project started; the decision will depend on feasibility study or business

case

- States the desired cost, time frame and who will be responsible for the project

- Project Charter: includes preliminary estimate of duration and cost, forecast of

resources needed to complete project; sets framework for the project

- Responsibilities: project sponsor – provides high level info. about project and issues project charter to project stakeholders

- Project manager – gathers info., asks questions and drafts the project charter

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Initiation Steps:

1. Identify project sponsor and primary stakeholders

2. Identify project manager

3. Document project objectives

4. Identify project boundaries

5. Prepare the project charter

6. Obtain approval for the project charter

Planning: defines how to make the project happen and how the team will reach the goal

- Responsibilities: project sponsor – sets overall project priorities and responds to questions about trade-offs between scope/time/cost

- Project manager – gathers info., asks questions and prepares project plan - Resource manager – provides resources to help with project planning - Team member/SME – provides input to the work needed and the time it will take to

perform the work

Planning Steps:

1. Identify the deliverables in the project

2. Identify the resources needed

3. Estimate the time/funds required

4. Prepare a project schedule

5. Perform risk management

6. Prepare the project plan

7. Obtain approval for the plan

Execution and Control: doing the work as outlined in the plan and watching the progress of the

proje t ork to e sure it’s follo i g the pla - Responsibilities: project sponsor – responds to questions from the PM and brings info.

relevant to project success to the attention of the PM

- Project manager – gathers info. about progress, facilitates problem solving and provides status info. to the sponsor

- Team member/SME – busiest people; do the work assigned to them in the project plan and provide progress updates to the PM

Execution and Control Steps:

1. Obtain project performance info.

2. Determine any variance from the plan

3. Perform corrective actions

4. Manage change requests

5. Report project performance to stakeholders

How to deal with changes in the execution and control: CHANGE IS INEVITABLE – having a formal approach to dealing with changes is crucial to project success

Closing: finishing the project; every project is a learning experience – we learn what went well that e a t to repeat a d hat did ’t go ell so e ould i pro e for future proje ts

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- Responsibilities: project manager – facilitate the lessons learned session, issue the lessons learned document and gather all project info. archive purposes

- All other stakeholders: provide objective and constructive info. about what worked in

the project and what are the opportunities for improvement

Closing Steps:

1. Collect final project info.

2. Perfor a lesso ’s lear ed re ie 3. Archive all project documents

4. Celebrate success – even if project is terminated early, the team members and stakeholders should be rewarded for their hard work

- Team members will appreciate that their work is appreciated and values

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Management – ADMS 3930: Week 9

Leadership Dynamics

Module 1 – Leadership Styles Leadership –

- Is required in all functions of management and is necessary to attain resource

effectiveness and organizational performance

Elements of Leadership – - Different leadership styles have different results

- Dynamic aspects of leadership can have a time-related affect on performance

Three-Dimensional Model of Leadership – - Allows for categorization of leadership behaviours

- Good leadership needs to contribute to organizational goals

- Good leaders are ’t k o for their eha iours, ut rather their orga izatio /u it’s achievements b/c of the leadership

Leadership Style – A leader’s eha iour hile i the leadership role - The way the personality of the leader is expressed in a leadership situation

- Personality: traits that are somewhat permanent behaviours of a leader that make up

the style

- Situation: everyone reacts differently per their perceptions of the situation

- There are leadership characteristics that are situationally specific

Power Dimension (a model of leadership style) – • Power: the decision-making authority (vertical axis) - Authoritarian: the leader has exclusive authority to make decisions (top of axis)

- Laisse-Faire: leader who takes no part in decision-making process (bottom of axis)

- Democratic: leader shares power equally with each of the subordinates (middle of axis)

- Mixtures of the type of powers are more common

• Orientation of the Leader (horizontal axis) - Task-Oriented: Wants to accomplish the task (left of axis)

- People-Oriented (Human-Oriented): Wants to satisfy human needs (right of axis)

- Both types may be interested in accomplishing goals/tasks

- Differences: task-orie ted elie es that there’s o differe tiation between human resources and other resources

- People-oriented believes that if needs are satisfied, then performance will improve

• Leadership Intensity: degree of inter-activity between leader and the group - High intensity: when leader is always present and involved with subordinate activities

- Zero intensity: when leader is not involved with the group at all

- Appropriate leadership intensity is determined by the situation

- Laissez-Faire leader would have zero intensity while authoritarian leader would have

high intensity

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- Benevolent Dictator style: leader makes all the decisions but also cares for members of

the group (parent-style relationship)

Other Leadership Styles – Directing Leader:

• Power: Authoritarian • Orientation: Task-oriented • Leadership Intensity: High - Whe a ork group eeds stru ture or there’s a re ellious group of e plo ees, this

would be helpful

- Temporary leadership style that may result in dysfunctional work environment if used

long-term

Coaching Leader:

• Power: Democratic • Orientation: People-oriented • Leadership Intensity: Medium - Leader shares power when subordinates direct their own work and leader intervenes

when necessary

- Lessen opportunity for satisfaction of intrinsic motivation but still a very common style

Facilitating Leader:

• Power: Democratic or Laissez-Faire (depending on situation) • Orientation: People-oriented • Leadership Intensity: Low - Leader lets the subordinate know that they are around and that they have resources if

the workers need

- Leaders monitor workgroup and can result in increased intrinsic motivation

Delegating Leader:

• Power: Laissez-Faire • Orientation: People-oriented • Leadership Intensity: Low - Leader is typically absent from the group, allow it to structure the work on their own

- Allo s for full auto o ut it’s ot a per a e t st le - Can result in increased motivation but can also create resentment/de-motivation if

workgroup is not capable

Module 2 – Dynamic Considerations Leadership Dynamics –

- Select leader to match the situation (better option), alter situation to suit existing leader

if possi le , or a ept opti al perfor a e o ’t e a hie ed ith the situatio a d leadership style

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SOBC Model – S: Stimulus, O: Organism, B: Behaviour, C: Consequence; an organism receives various stimuli

that create a situation and the stimuli provoke the behaviour that the organism tends to

express in that situation, and that behaviour leads to consequences

- Leaders behaviour is part of the stimuli that the group members experience because

they work together

The Situation – - An autonomous workgroup will function best under a coaching or facilitating leadership

style; directing leadership style is used under times of stress and could result in

rebellious performance by workers

Situation Explained Using SOBC Model – - I itiall the leader’s eha iours ere ell-suited to the professional group and new

relationships started off well; upper management was giving new leader time to make

progress and gave time to make improvements

- After 2 o ths, ork as ’t i pro i g a d the leader as told to ake ast improvements or his position would be in jeopardy

- New stimulus (leader): pressure applied by upper level management; stressful

situation caused leader to display directing leadership style and began showing

animosity towards group

- New stimulus (group): behaviour displayed by new leader; resulted in decrease

motivation and decreased productivity to punish the leader for their behaviour

Dynamic Leader-Group Relations – - Leadership st le is a e pressio of a leader’s perso alit - It takes time to perceive a new leadership style; the time depends on the intensity of

i tera tio s ore i tera tio s gi e e ers ore opportu ities to o ser e leader’s behaviour)

Leader-Member Relations – - When a leader with an ineffective style is being replaced by one with an effective style,

new leader should interact more with the group to improve leader-member relations

- When successful leader is being replaced by an inexperienced one, fewer interactions

would be better

Combine static and dynamic leadership models and theories with motivational considerations

for an understanding of how to attain better workgroup performance over the long-run

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