Strategic Management Model Labor/Union Management Relations

1. Strategic Management ModelLabor/Union Management Relations Phase I Phase II Legislation Executive-Administrative Initiative x CONTRACT DISPUTE SETTLEMENT Law of the Phase IIA Strike/Lockout Land Judicial Fact Finding (5 Major Sections) Protest—Appeal (Cooling Off) Conciliation DISPUTE SETTLEMENT Mediation Strike/Lockout Arbitration

2. The Anatomy of A Union Management Contract Most Union Contract Consist of: • An agreement structure • The status and rights of the union and management • Amount and method of compensation • Control of job opportunities • Work speeds, methods and conditions

3. MIDI Case One: An Abbreviated, Personal Business Plan Approximately 5 pages in length Individually written case analysis Must include: • Your mission for the future of the organization • Your future objectives for the organization • Your analysis and quantitative forecast of industry and company • Your strategic decisions (i.e., actions, with results) to accomplish objectives • A 3 year pro forma income statement • Your participation in class discussion and case debrief

4. A Few Notes aboutThe Organization The organization primarily values people who: • HR: Are assertive and directive • TB: Are people oriented • CG: Have creative activity • DG: Have precision and continuity The organization primarily values people who: • DG: Are concerned with procedures • HR: Are strong and ambitious • TB: Are mutually supportive and have friendly interpersonal relationships • CG: Respect autonomy and integrity of others, and require respect from colleagues and managers

5. More aboutThe Organization The organization is characterized as: • TB: Being concerned with interpersonal processes • DG: Being bureaucratic • HR: A dictatorship • CG: Having a lack of controls The organization: • CG: Feels that employees can be trusted to do what they should do without someone checking up on them • HR: Has two different standards for employees—what they achieve and how well orders are followed • TB: Feels that decisions should not be made by individuals, but by groups • DG: Let’s you know that if you just follow the book, you will not be fired

6. More aboutThe Organization The people in the organization: • TB: Feel promotions should go to people who get along and understand our way of doing things • CG: Are free to determine their own goals and how to reach them • HR: Believe that the boss should tell employees what their goals are • DG: Feel promotions should be based upon seniority, compliance with procedures and budget management The organization is primarily made up of: • TB: Employees who are concerned with the group’s assessment of the quality of the interpersonal process • DG: Employees who feel the organization is run on the basis of rules • HR: Employees who believe it is their task to listen to the boss and obey thoroughly • CG: People who like to do their own thing without having to depend on others

7. More aboutThe Organization The people in the organization value: • HR: Opportunity • DG: Security • TB: Consideration • CG: Independence The organization is characterized as: • TB: Existing in a secure marketplace • DG: Established and traditional • HR: Market driven • CG: Entrepreneurial

8. Culture Test Part B: Ideal Organization 1 2 3 4 5 6 7 8

9. Interpreting the Culture Test

10. More aboutCool Green People and Orgs. Cool Green Individuals • Motivated by autonomy • Typically competent and self directed Cool Green Organizations • Built on foundation of mutual respect for autonomy/integrity • Characterized by Creative Activity • Careful personnel selection required • Difficulty in attracting/retaining necessary administrative and bureaucratic staff Cool Green Illustrated • Research companies/divisions, professional companies (law firms), universities

11. More aboutHot Red People and Orgs. Hot Red Individuals • Assertive and directive • Want subordinates that obey / superiors that model and mentor • If you can’t lead or follow, get out of the way Hot Red Organizations • Usually very productive as small organizations • Larger organization’s employees are faced with conflicting goals of being evaluated by accomplishment and following orders • As Hot Red organizations grow, they often become Dull Grey Hot Red Illustrated • Entrepreneurial companies, small companies or divisions in competitive markets such as finance or sales

12. More aboutTrue Blue People and Orgs. True Blue Individuals • Are people oriented and want mutually supportive and friendly interpersonal relationships • Get along well with people who need and are concerned about them • Difficulty dealing with competitive, ambitions and detached people • People who fit this culture will stay a lifetime and accept poor wages True Blue Organizations • Concerned with group’s assessment of the quality of the interpersonal process over objective accomplishments • Believe in group decision making--few decisions actually made • Can only exist in a company serving a stable and secure market True Blue Illustrated • Mom and Pop companies (restaurants) or autonomous service dept’s within larger orgs (mail rooms, or maintenance dept.s) usually with guaranteed work and little perceived competition

13. Country ClustersHofstede’s Four Dimensions of National Culture L O W H I G H Far East Latin Near East Nordic Anglo Individualism Nordic Anglo Near East Far East Power distance Far East Nordic Latin Latin Anglo Near East Uncertainty Avoidance Nordic Anglo Masculinity Anglo Far East Long Term Orientation

14. Coping with Differences in National Cultures Power-Distance (PD) The degree to which people in a country accept a hierarchical or unequal distribution of power in organizations. For example, Indonesia is considered a high power-distance culture, whereas the Netherlands is considered a relatively low power-distance culture. • High PD cultures—Status is important • Low PD cultures—expect closer relationships between superiors and subordinates

15. Coping with Differences in National Cultures--more Uncertainty-Avoidance (UA) The degree to which people in a country prefer structured versus unstructured situations. For example, France is considered a high uncertainty avoidance culture, whereas Hong Kong is considered low uncertainty avoidance culture. • High UA cultures—structure is important • Low UA—less emphasis on structure/security, tendency to let time “have its way”

16. Coping with Differences in National Cultures Individualism-Collectivism (IC) The degree to which people in a country focus more on working as individuals versus working together in groups. For example, Germany is considered a relatively highly individualistic culture, whereas Sweden is considered a more highly collectivist culture. • High IC cultures—individual comes first; more emphasis on the “group”; think and behave in “we” terms

17. Coping with Differences in National Cultures, more… Masculinity-Femininity The degree to which people in a country emphasize so-called masculine traits, such as assertiveness, independence, and insensitivity to feelings, as dominant values. For example, Japan is considered a highly masculine culture, whereas the Netherlands is considered a more feminine culture. • High masculinity cultures—independence is valued • High femininity cultures—emphasis on interdependence; gender equality; quality of life; interpersonal relations; respect for “beautiful things”

18. Coping with Differences in National Cultures, more… Long-term—Short-term Orientation The degree to which people in a country emphasize values associated with the future, such as thrift and persistence, verses values that focus on the past or present, such as social obligations and tradition. China is high on long-term orientation, while the US is more short-term • High long-term cultures—traditions, age, relationships are respected • Low short-term cultures—less respect for age; more willingness to express criticism; more emphasis on formal written contracts

19. Management Action Agenda • WHAT - CHANGE • WHERE - EVERYWHERE • WHEN - NOW • HOW - PROJECT TEAMS • WHY - BOTTOM LINE • WHO - EVERYONE

20. The Basic Process of Managing by Objectives • Set Objectives • Identify & state predicted results • Prioritize objectives • Establish review points • Establish Criteria for Measurement • $’s, %’s, #’s

21. Basic Process Cont’d • Establish Plans • What’s to be done • Who’s to do it • When it’s to be done • How it’s to be done • Performing • Organizing resources & Enacting plan

22. Basic Process Cont’s • Measure • Compare progress to plan as required & prior to review • Review • Compare results to planned objectives • Communicate evaluation of results • Renew cycle in part or total

23. Basic Process Cont’d