MGT5557: Structural and Human Resource Frames

1. MGT5557: Structural and Human Resource Frames Fall, 2010

2. Agenda • Frames and Reframing • Structural Frame: Introduction • Campbell & Bailyn’s Boston Office • Human Resource Frame: introduction • Men’s Wearhouse

3. Next class: Leadership in Action • Organization simulation: observe and practice leadership under challenging conditions • Pay to play: bring $10 cash for simulation working capital • Your $10 investment will be in play and at risk in the simulation

4. Where We’ve Been • Theories for action: espoused theory vs. theory-in-use • Ladder of inference – data vs. inference and interpretation • Framing is a form of inference, an interpretive process • Organization structure • Structure needs to align with task, technology, environment • Differentiation and integration as core issues in structure

5. What is a frame? "Frames are principles of selection, emphasis and presentation composed of little tacit theories about what exists, what happens, and what matters.“ (Todd Gitlin) • Window: • An aperture that influences what you see and notice, and how you interpret it • What you see and how you understand your situation depend on the window you use

6. Frame as window

7. What is a frame? • Window: • A window on the world that influences what you see and how you interpret it • Tool: an implement for performing tasks • Important to have right tool for job • Skill matters: having a tool isn’t the same as knowing how to use it

8. What is a frame? Window: Tool: an implement for performing tasks Perspective: a set of related ideas, a story-line, that gives order and meaning to disparate bits of data

9. Framing “To frame is to select some aspects of a perceived reality and make them more salient…in such a way as to promote a particular problem definition, causal interpretation, moral evaluation, and/or treatment recommendation.” (Robert Entman) • Is automatic and usually tacit • We frame to make sense -- when we encounter new information or situations, we use our experience and knowledge to develop a frame that resolves ambiguity and creates meaning • Example: The City

10. True, False or Don’t Know? A man appeared after the owner had turned off his store lights. The robber spoke with a strong accent. It was summer when this incident occurred. The man who opened the cash register was the owner. The man who demanded money scooped up the contents of the cash register and ran away. A businessman had just turned off the lights when a man who spoke with a strong accent appeared in the store.

11. True, False or Don’t Know? Money from the cash register was scooped up by someone. The details of this event were promptly reported to a policeman. The owner scooped up the contents of the cash register and sped away. The following events occurred: someone demanded money; a cash register was opened; its contents were scooped up; and the man dashed out of the store.

12. Framing • Is automatic • We frame to make sense -- when we encounter new information or situations, we use our experience and knowledge to develop a frame that resolves ambiguity and creates meaning • When framing fails, we have trouble making sense (example on next slide)

13. Лидерство иСтратегия Ли Болмэн

14. Лидерство иСтратегияLiderstvo i Strategia Ли Болмэн Li Bolmen

15. A Structural View • Metaphor: complex machine • Leader: analyst, architect • Strategy: do your homework, analyze, design new approach, implement • Focus: data, logic, structure, plans, policies

16. Alfred P. Sloan at General Motors • Appointed CEO 1923 • In first year, GM’s share dropped from 20 to 17%; Ford’s increased to 55% • GM passed Ford 5 years later • Structure Sloan inherited: feudal baronies • One option: functional organization

17. B.C. Ministry of Management Services

18. Alfred P. Sloan at General Motors • Appointed CEO 1923 • In first year, GM’s share dropped from 20 to 17%; Ford’s increased to 55% • GM passed Ford 5 years later • Structure Sloan inherited: feudal barony • One option: functional organization • Structure he built: product divisions with strong central staff

19. Two central issues in structuring: • Differentiation: How to divide up the work (roles, units, etc.) • Integration: how to coordinate and tie things together once they’re divided up

20. Options for dividing the work:

21. Options for dividing the work:

22. Integration: pulling it together • Formal vs. informal • Vertical • Authority • Policies, procedures, rules • Systems (accounting, I.T.,etc.) • Incentives • Lateral • Committees, teams, task forces • Coordinating roles • Networking

23. Structural Configuration • Mintzberg’s Fives • Strategic apex • Middle management • Operating core • Techno structure • Support staff

24. Why cases? • Virtual tour: learn from immersion in different issues and contexts • Application of theory to practice • Goal is not “right answer” but learn ideas and concepts that let you think better about issues and challenges that cut across this case and • Diagnostic skills: increase ability to size up situations and answer two key questions: what’s happening, and what needs to be done? • Test your ideas against others’ ideas

25. Team Discussion Questions: • What’s changing in the industry that’s affecting C&B? • What were the strengths and weaknesses of the old organization? • What are the strengths and weaknesses of the new organization? • What’s up with the change in performance appraisal?

26. Why Restructure? • The environment shifts • Technology changes • Organizations grow • Leadership changes • Troubled firms • Impulsive firms • Stagnant bureaucracies • Headless giants

27. Campbell & Bailyn’s Boston Office: the context • What’s changing in the industry that’s affecting C&B?

28. Campbell & Bailyn’s Boston Office: the context • What’s changing in the industry that’s affecting C&B? • Declining margins of traditional products (commoditization) • More specialized and complex products • More sophisticated customers • Shift in power balance from generalists to specialists • Customers need more expert advice on esoteric products

29. Campbell & Bailyn’s Boston Office:the old organization • What were the strengths and weaknesses of the old organization?

31. Campbell & Bailyn’s Boston Office:the new organization • What are the strengths and weaknesses of the new organization?

32. Campbell & Bailyn’s Boston Office:the new organization • Is KAT an improvement?

33. Campbell & Bailyn’s Boston Office:the new organization • What changed in terms of performance appraisal?

34. Mintzberg’s Structural Configurations • Simple Structure • Machine Bureaucracy • Professional Bureaucracy • Divisionalized Form • Adhocracy

35. Mintzberg’s Structural Configurations • Simple Structure • Machine Bureaucracy • Professional Bureaucracy • Divisionalized Form • Adhocracy

36. Mintzberg’s Structural Configurations • Simple Structure • Machine Bureaucracy • Professional Bureaucracy • Divisionalized Form • Adhocracy

37. Mintzberg’s Structural Configurations • Simple Structure • Machine Bureaucracy • Professional Bureaucracy • Divisionalized Form • Adhocracy

38. Mintzberg’s Structural Configurations • Simple Structure • Machine Bureaucracy • Professional Bureaucracy • Divisionalized Form • Adhocracy

39. Generic Issues in Restructuring: each component exerts distinct pressures • Strategic apex: pushes for more alignment, centralization • Middle managers try to protect autonomy and room to run their own unit • Techno structure pushes for standardization, promotes measurement and monitoring • Support staff prefers less hierarchy, more collaboration

40. Structural wrap-up • How would you describe Ken Winston’s management approach? • How well has he led the changes? • Should he do anything different? • What do we learn about structure and structural change?

41. A Human Resource View • Metaphor: Extended family • Leader: servant, catalyst • Change strategy: build relationships, listen, educate, be open, empower others • Focus: skills, attitudes, teamwork, communications

42. Men’s Wearhouse

43. http://www.youtube.com/watch?v=w0J80ppIGWo

44. Men’s Wearhouse What are the central concepts and assumptions of the human resource perspective? How has Men’s Wearhouse been so successful in a competitive, declining industry?

45. HR Practices Develop and implement HRM strategy Hire the right people Keep them Invest in them Empower them Promote diversity

46. Investing in people Would similar practices work in other industries, or is there something special about retailing? Would these practices work in your workplace?

47. Men’s Wearhouse:Update • As of January, 2010, 1259 stores • 581 Men’s Wearhouse • 458 Men’s Wearhouse & Tux • 117 Moores (Canada) • 107 K&G (discount chain) • Financials • 2007: $2.1 billion sales, $147 million net • 2009: $1.9 billion sales, $46 million net