Management Perspectives
rupali
Week3_L3_MGMT6012.pptxMGMT6012 Management Perspectives Week 3, T3 2019
Assessment One – Proposed Structure You have some flexibility with the structure for this assignment but once you have read the assessment brief and rubric you will see that we need the following: Executive Summary (not included in the word count). Introduction: what this report is about, a very brief introduction to the organisation, why you chose the organisation, and any relationship you have with the organisation. Research Methodology: a summary of the methodology you embraced for this assignment including case study methodology and the use of naturally occurring data. Vision and Values of the Organisation: include vision or mission of the organisation, their values, an insight into their culture and management style using Morgan’s metaphors. Organisational Theory: can you find any evidence of management theory from Module 1 at the organisation? Can you find any information on their organisational structure, chain of command and channels of communication from Module 2? Ethics and Diversity: Can you find any evidence of ethical practice (good or bad)? Has the company embraced diversity (Module 3)? Conclusion: what are your views on the management of the organisation? Have they embraced organisational theory? Are they living their values? Do you have any recommendations?
Naturally Occurring Data The more information a manager has, and the better the quality of that information, the better the decisions that the manager can make. Information can be sourced from two areas – what is happening outside and inside the organisation (the external and internal environments). Experienced managers acquire much of their information in their day-to-day activities – this is a form of naturally occurring data. The key requirement is to acquire information which fits the need of the current situation. We are now experiencing rapid change in business and so the manager cannot rely on previous experience, and should revaluate the kinds of information they need on a regular basis.
Naturally Occurring Data Obtaining information can be unethical or illegal Operational Information (short term, day to day) v Strategic Information (long term, the future) Frameworks for gathering information: - SWOT (strengths, weaknesses, opportunities, threats) - The balanced scorecard (4 perspectives - financial, internal, customers, innovation & learning) - The stakeholder model (understand the needs and preferences of all stakeholders)
Naturally Occurring Data External Environment Task Environment Internal Environment Technology Customers Employees Economic Competitor Products Processes Social Competitors Political Legal
Naturally Occurring Data Using the Information: 1. Assess the Information – is it useful? If yes, filter and then discard any oversupply. 2. Combine Information – multiple sources, motivations 3. Analyse the Information – what are the full implications of the information? 4. Pass the analysis over – share it with the appropriate people to action.
Module 2 Module One looked at the function of management and the use of metaphors to understand organisations. In Module Two we look at the structures that are evident in organisations, the channels of communication, the direction in which communication flows, the chain of command and centres of power in the organisation.
SA Health Organisational Chart
Organisational Structure ‘One can define organisational structure as a system of tasks, reporting relationships and communication linkages.’ ‘The purpose of the organisational structure is to direct resources according to plans and schedules, facilitate information flow and provide an intrinsic level of control.’ ‘The right structure will help maintain stability and a degree of certainty and control in the organisation, which helps to protect the organisation in the face of environmental uncertainty.’
Six dimensions of Organisational Structure – Child 1.Allocation of tasks and responsibilities (division of labour, specialisation). 2. Formal reporting relationships (levels of hierarchy, spans of control, chain of command). 3. The grouping of individuals into teams/sections/units/departments/divisions. 4. Systems to ensure effective information dissemination (communication), integration of effort and participation by employees in decision-making process. 5. Delegation of authority (power to make decisions, control, monitor performance). 6. Performance appraisal and reward systems (to motivate employees).
Traditional Structures Traditional structures are focused on the division of labour into groups of people working together. This process of departmentalisation has resulted in three types of structures: Functional: resources are grouped or allocated based on function – for example accounting, engineering, marketing. Divisional: resources are grouped or allocated based on broader dimensions – for example location or outputs. Matrix: a hybrid of functional and divisional structures to focus resources – employees in this structure end up with two bosses. (Some bring out a fourth type called administrative structure)
PAFC Structure
CEO
Chief Operating Officer
GM Community
GM Licensed Venues
GM
Events
GM Retail
GM Corporate
GM Marketing
Senior Coach
Laureate University (Australia and NZ) Organisational Structure
Matrix Stucture A
Matrix Structure B
Traditional Structures
Traditional structures can be defined in terms of complexity, centralisation and formalisation.
Complexity – how differentiated or broken down into parts the activities are with an organisation:
1. Horizontal Differentiation – number of different specialisations and sub-cultures
2. Vertical Differentiation – the depth of hierarchy (layers) in the organisation
3. Spatial Differentiation – how physically or geographically spread out are the people
Centralisation – the degree to which decision making is concentrated at one point in the organisation.
Formalisation – the degree to which jobs have been routinised and prescribed (standardised).
Benefits of Structure
Division of labour
Allocation of work/tasks to meet organisational goals
Allocation of resources
Grouping of people with similar skills, qualifications, values, subcultures
(strengths?)
Reporting relationships
Communication channels
Accountability
Recognition and Reward
Evolution of Structure (Mintzberg)
Structure can change, and should evolve. Five basic structures:
- A simple structure with direct supervision (the founder).
- The ‘machine’ bureaucracy – standardised work processes and
supervision.
- The professional bureaucracy: more qualified staff, expertise &
knowledge.
Divisionalised form based on outputs, separate controls and systems.
Adhocracy: a system of flexible, informal organisation & management in place of rigid bureaucracy (a combination of adhoc, reactive behaviour and bureaucracy)
New Developments
Structural innovation is an important part of productivity improvement and responding to change.
Adhocracies – as discussed – usually project based, flexible, informal (opposite to the rigid bureaucracy).
Networks or Virtual Organisations – operate with a central core linked through networks of relationships including external contractors/suppliers.
Flatter Organisations – reduced levels of hierarchy to increase efficiencies and reduce labour costs; brings senior management and employees closer but increases the span of control of individuals within the organisation.
Networks or Virtual Organisations
Designed for both stability and dynamism
Network of teams within a people-centered culture that operates in fast learning and decision cycles enabled by technology
Adds velocity and adaptability to stability
Creates a critical source of competitive advantage in volatile, uncertain, complex conditions
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Agile Organisation
The Agile Organisation
Quickly evolving environment: stakeholders’ demand patterns are evolving rapidly; competitors and collaborators demand action to accommodate fast-changing priorities
Constant introduction of disruptive technology: Businesses and industries are replaces through innovation, digitization and automation; egs.: Internet of Things, robotics, AI
Accelerating digitization and democratization of information: Increased volume, transparence and distribution of information demands organisations to engage in multidirectional communication with customers, colleagues and partners
New war for Talent: creative knowledge and learning-based tasks are becoming increasingly important; organisations need a distinctive value proposition to acquire, retain the best talent which is often more diverse with different thoughts, experience
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Disruptive Trends challenging the old paradigm
Agile organisations have 70% chance of being in the top
Best indicator of long-term performance
Simultaneously achieve greater customer centricity, faster time to market, higher revenue growth, lower costs and better engaged workforce
Examples:
A global bank reduced its cost base by 30%, significantly improved employee engagement, customer satisfaction, time to the market
A basic materials company achieved continuous improvement among manual workers; there was an approx. 25% increase in effectiveness and 60% decrease in injuries
source: https://www.mckinsey.com/business-functions/organization/our-insights/the-five-trademarks-of-agile-organizations
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More about agile organisations….
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5 trademarks of agile organisations
The three most commonly observed agile types are:
Cross-functional teams deliver ‘products’ or projects, which ensure that the knowledge and skills to deliver desired outcomes reside within the team.These teams typically include a product or project owner to define the vision and prioritize work.
Self-managing teams deliver baseload activity and are relatively stable over time. The teams define the best way to reach goals, prioritize activities, and focus their effort. Different team members will lead the group based on their competence rather than on their position.
Flow-to-the-work pools of individuals are staffed to different tasks full-time based on the priority of the need. This work method can enhance efficiencies, enable people to build broader skillsets, and ensure that business priorities are adequately resourced.
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Different Types of Agile building blocks
Improved quality: solutions on time with higher client / customer satisfaction
Focus on Business Values: delivering strategic business values involving business stakeholders in the development process
Focus on Users: focusing on the needs of the users it delivers increasing value and provides grounds to beta test products
Stakeholder engagement: multiple opportunities for stakeholder and team engagement; higher degree of collaborations
Transparency: requirement that customers see a work in progress in exchange for transparency
Early and predictable delivery: new features help with timely and predictable delivery; software delivered earlier than planned
Predictable costs and schedule: cost is predictable and limited to the amount of work that can be performed by the team in the fixed-schedule time box
Allows for change: unlike a waterfall method, it allows for change; opportunity to constantly refine and reprioritize the overall product backlog.
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Benefits of agile methodology
People’s behavioral change
Lack of skilled product owners
Lack of dedicated cross functional teams
Source; https://www.blueprintsys.com/agile-development-101/agile-benefits-and-challenges
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Challenges- agile methodology
When there's freedom, there's happiness.
When there's happiness, there's the right mindset.
When there's the right mindset, there's productivity.
And when there's productivity, it leads to Growth.
Work places shouldn't be a Cage filled with unhappy humans but a place they can also call home.
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