Today! Day 2

1. Today! Day 2 • Team Presentations: Cathay Pacific • More on case analysis, case presentations (from Learning with Cases) • Organizational Culture and Ethics: Chow’s Cookies case • Management thought for the new millennium • Learning from life: A field exercise

2. Case Presentations Cathay Pacific: Service Straight From the Heart Cathay Pacific: A View from the Top

3. Cathay Pacific • 10-minute presentations (including Q & A) • Be concise, be precise • Not every group member needs to talk • Use PowerPoint

4. Case Issue: Importance and Urgency Matrix

5. Analyzing Case Data • Causes and Effects • To work backward to determine what may be the “root” causes. • Fishbone Diagram: Equipment People Effect Cause Methods Materials

6. Analyzing Case Data (Cont’) • Overview of a firm’s strategic situation • SWOT Analysis Internal External

7. Potential entrants Industry competitors Suppliers Buyers Rivalry among existing firms Substitutes Analyzing Case Data (Cont’) • Structural analysis of competitive forces • Porter’s five forces model of rivalry Threat of new entrants Bargaining power of suppliers Bargaining power of buyers Threat of substitute products or services

8. Analyzing Case Data (Cont’) • Star Model Strategy Rewards Structure Process People

9. Boston Consulting Group: Market Share Model Relative Market Share Low High Industry Growth Rate High Low

10. STRUCTURE SYSTEMS STRATEGY SHARED VALUES STYLE SKILLS STAFF The McKinsey 7-S Framework

11. STRUCTURE SYSTEMS STRATEGY SHARED VALUES STYLE SKILLS STAFF The McKinsey 7-S Framework Strategy: A set of actions aimed at gaining a sustainable advantage over the competition. Structure: The organization chart and associated information that shows who reports to whom and how tasks are both divided up and integrated. Systems: The processes and flows that show how an organization operates on a daily basis (e.g. information systems, capital budgeting systems, manufacturing processes, quality control systems, and performance measurement systems). Style: What managers consider to be important by the way they collectively spend their time and attention and how they use symbolic behavior. It is more important how management behaves than what management says.

12. STRUCTURE SYSTEMS STRATEGY SHARED VALUES STYLE SKILLS STAFF The McKinsey 7-S Framework Staff: What companies do to foster the process of developing managers and shaping the basic values of the management team. Shared values: The values that go beyond, but usually include, statement of goals and objectives in determining a firm’s destiny. These values are shared by most of the people in the organization. Skills: Those dominant attributes of capabilities that are possessed by an organization.

13. Analyzing Case Data (Cont’) • Constraints and Opportunities • Quantitative and Qualitative Assessment

14. Case Analysis and Presentations One skill above all others creates perception of extraordinary competence, the ability to deliver • clear, • powerful, • interesting presentations with a • few good ideas

15. Case Presentations • Suggestions for effective presentations: • Organize your presentation • Prepare well • Use memory props • Keep it simple • If you use a model (SWOT, etc) use 1 not 5 • Use quality visual aids • Rehearse • Anticipate your audience reaction

16. Case Presentations (Cont’) • Suggestions for Critic-Observers • Be constructive • Limit your observations to a few important aspects of the presentation • Distinguish between content and process observations • Learn vicariously

17. Case Reports • “Reports are power tests, exams are speed tests.” • Convey effectively your complete analysis and specific recommendations in written form. • Suggestions for effective case reports • Check the assignment • Review the evaluation criteria • Plan your report carefully

18. Case Reports (Cont’) • Case Report Checklist: • Title page • Table of contents • Executive summary • Issue statement • Data analysis • Alternatives analysis • Recommendations • Action and Implementation Plan • Exhibits

19. The Business Analyst: • Part of the job is to decide “what are the key issues here?” The case analyst must also decide what questions to ask. In this orientation we give hints. In real life, YOU must decide what problems need solving, short and long term. Feel free to approach cases in your own way!

20. Cultures and Ethical Values Individuals, organizations, societies

21. Ethical Values in Organizations • Ethics • Rules of law • Managerial ethics • Social responsibility • Ethical dilemmas

22. Sources of Ethical Values • Personal ethics • Utilitarian, justice, rights • Societal culture • Organizational culture • Organizational systems • Committees, codes, leaders, training, reporting • External stakeholders

23. Chow’s Cookie Company

24. Chow’s Cookie Company • Evaluate Mr. Chow’s attempt to be socially responsible • What is the social responsibility of business? • To whom are managers responsible? Stockholders? Neighbors? Society? Employees? Customers? • “The only social responsibility of a business is to maximize the wealth of shareholders.” Right?

25. Emotional Intelligence • Self - Awareness • Self - Management • Social Awareness • Social Management

26. Leadership Styles Modus Operandi • Coercive Demands immediate compliance • Authoritative Mobilizes people toward a vision • Affiliative Creates harmony and builds emotional bonds •  Democratic Forges consensus through participation •  Pacesetting Sets high standards for performance •  Coaching Develops people for the future

27. Fully Developed Leader • Has complete emotional intelligence (genius level) • Uses all leadership styles seamlessly • Willing followers – Influence • Professional

28. Professional • MBA Students • Follows professional code of conduct • How should it read?

29. MBA Student Code of Conduct Discussion

30. Honor Code • Not seek unfair advantage • Truthfully represent fact & self • Respect property & people • Uphold honor code • Report all material violations

31. Where the Ideas Come from • In the West, ideas of Frederick W Taylor very influential in early 20th century • Bookkeeper, Midvale Steel • Always looking for a better way

32. Taylor Observed: • Loading railroad cars • Carrying “pig iron” (blocks of iron) • Shoveling • Developed the “Science of Shoveling” • Taylor popularized “Scientific Management”

33. Scientific Management Summarized • Develop a science for each element of work, not “rule-of-thumb” methods. • Scientifically select, train, and develop workers. • Cooperate with workers to ensure all work is done in accordance with scientific principles. • Divide work and responsibility almost equally between management and workers.

34. Scientific Management: Core Components • Simplification: The breaking up of the work that needs to be performed in an organization into the smallest identifiable tasks. • Specialization: The assignment of workers to perform small, simple tasks. • Time and Motion Studies: Studies that reveal exactly how long it takes to perform a task and the best way to perform it.

35. Impact Tremendous • Steel industry • Construction industry • Even family management! • Ford and GM

36. Scientific Management: Results Taylor’s Predictions: • Greater productivity and profit for the firm • Easier and more efficient work for workers • So more money to share with workers • Workers need work fewer hours SM reality • Greater productivity and profit for the firm • Deskilled and more repetitive work for workers • Less skills meant less money for workers • Workers need work longer hours

37. Scientific Managementthe SHOVEL Story • Workers stupid • Workers lazy • therefore, • BOSS must decide everything • BOSS must be BOSS

38. Scientific Management Great, However: • How would Pig Iron handler feel? • Reactions in all sorts of factories

39. Reactions Included: • The famous Hawthorne Studies • Started as a normal “time and motion” study • When lights were made brighter, production went up • Conclusion: bright light helps? • Then . . .

40. Hawthorne Studies Taught Us: • Hawthorne Studies: • The “lights” story • Significance: • People matter • Attention to people matters • Groups matter

41. The Job Characteristics Model • An approach to job design that aims to identify characteristics that make jobs intrinsically motivating and the consequences of those characteristics.

42. The Job Characteristics Model: Core job dimensions • Skill variety • Task identity • Task significance • Autonomy • Feedback

43. Fads and Fashions • 1900s to 1920s: Scientific Management • 1930s to 1940s: Human Relations • 1950s to 1970s: Contingency Approach • 1980s to present: Management Science?

44. What it all means • Scientific Management taught us that the efficient structure of the jobs is important • The Hawthorn Studies taught us that the paying attention to workers feelings is important • Job Characteristic Model taught us that creating jobs to be intrinsically motivating is important

45. Things Happen within Culture • Society level culture • The culture of the business world • Over time, how business sees world changes. There is a “business culture”, influenced by societal ideas (Confucius, etc.) and by business ideas (Taylor, etc.) • Organizational level culture

46. Organizational Culture • What is culture? • Elements and dimensions • Collective mental programming • Emergence and purpose of culture • Where does it come from? • Can it be changed? • Should it be manipulated?

47. Interpreting Culture • Rites and ceremonies • Rites of passage, enhancement, renewal, integration • Stories • Heroes, legends, myths • Symbols • Language • Culture strength and adaptation

48. Organizational Culture in the Real World: • See handout on field assignment • Observe and compare two organizations • Record your observations • Prepare a 10-minute presentation

49. Format for Presentations • Each team has 10 minutes • Tell us who you observed and circumstances • Summarize results • Address questions in assignment • Add other insights and recommendations