The Management of Organizations An Introduction

1. The Management of OrganizationsAn Introduction Minder Chen Professor of MIS Martin V. Smith School of Business and Economics CSU Channel Islands Minder.Chen@csuci.edu

2. The Changing Nature of Work • Farming –24/7, work=family, “jack of all trades”, “rugged individualism”yet tight communities • Craft –artisan/apprentice hierarchy, do whole task (shoes, etc.) • Mass Production –separate work/family, division of labor, assembly line, owners vs. union, classic social contract of loyalty for security • Knowledge Work –educated, professional, mobile “human capital” with “careers” • Service Work –the “new factory” is McDonald and Wal-Mart, but…. Source: MIT Prof. John Carroll (pdf)

3. Today’s Management Crises • 1940s-70s: General Motors–Wage leader: Wage formula negotiated with United Auto Workers: 3% plus productivity and cost of living adjustments–Introduced pensions, health insurance, joint training funds, work-family benefits…–Other firms forced to match GMs rising wages/benefits • 2000s Wal-Mart–Largest US employer (1.8 million people)–Average wage 30% below national average; 50% turnover !!–Class action suits for gender discrimination and overtime pay–Resists unionization—watch for media counter blitz!–Other firms match Wal-Mart lower wages/benefits (not all)–GM today: Delphi spin-off in bankruptcy, GM on the brink • And don’t forget Enron, WorldCom, China, India,… Source: MIT Prof. John Carroll (pdf)

4. Wal-Mart vs. Costco http://money.cnn.com/2013/08/06/news/economy/costco-fast-food-strikes/

5.  Five Basic Tasks of a Manager • Sets objectives. The manager sets goals for the group, and decides what work needs to be done to meet those goals. • Organizes. The manager divides the work into manageable activities, and selects people to accomplish the tasks that need to be done. • Motivates and communicates. The manager creates a team out of his people, through decisions on pay, placement, promotion, and through his communications with the team. It is also referred to as the “integrating” function of the manager. • Measures. The manager establishes appropriate targets and yardsticks, and analyzes, appraises and interprets performance. • Develops people. With the rise of the knowledge worker, this task has taken on added importance. In a knowledge economy, people are the company’s most important asset, and it is up to the manager to develop that asset. http://guides.wsj.com/management/developing-a-leadership-style/what-do-managers-do/

6. Organizations • An organization is a social entity that has a collective goal and is linked to an external environment. • Social entity (of people) • Goal directed (purposeful) • Designed as deliberately structured and coordinated activity/process systems • Linked to (and interacting with) the external environment “All human endeavors require organizations” http://www.unf.edu/~gbaker/Man4201/Chapt001a.PDF http://www.unf.edu/~gbaker/Man4201/

7. Five Key Areas of Effective Organizations http://www.bridgespan.org/getattachment/099fa836-b185-4107-92b3-4a87d4590c67/The-Effective-Organization-Five-Questions-to-Trans.aspx

8. Universal Need for Management • Sizes of organizations: large vs. small • Types of organizations: For profit, Social Enterprise, Social Business, Non-for-profit (school, government, charity) • Stages of organizations: Start-up, growing, and matured • Levels within an organizations: From top to bottom • All business functions within an organization: Marketing, HR, Finance, IT, Manufacturing, R&D, etc. “Management is everyone’s business”

9. What’s a Manager Anyway? • Traditional: Person who plans, directs people and resources • New Organization: Person who supports, coaches, coordinates, and leads • Peter Principle: A person promoted to their level of incompetence • Dilbert’s Principle: The most ineffective workers are systematically moved where they can do the least damage: to management Some Alternative Definitions Source: MIT Prof. John Carroll (pdf)

10. Motives for Work • I work for money and the food, shelter, and goods money buys. • I work for status and recognition. • I work to belong; to be part of a group. • I work to get to the top. • I work because it's only right that people should work. • I work for knowledge and understanding. • I work for security. • I work for the feeling of accomplishment I get from a job well done.

11. huMan, Market, Money, Method, Machine, Material, Message • Business environments • Market demands • Technology development • Social trends • Locations/Localization Man: Human Resource, Employees Market: Customers People $$$   Message: Information Money: Accounting, Finance, Investment Processes Things Machine: Property, Facility, Technology Material: Raw material, Product Method: Technique, Process, Project, Task

12. Management Skill Pyramid

13. From R. Alec Mackenzie, " The Management Process in 3-D", Harvard Business Review, Nov-Dec 1969

14. The Inner Working of Management Processes

15. Management Process in 3-D Technical Skills Conceptual Skills People Skills Top Managers Low-level Managers http://www.light-maker.com/harvard_wheel.jpg

16. Ideas (Conceptual Skills) • Forecast, Set objectives, Develop Strategies/Programs/ Budgets, Set procedure, and Develop policies

17. Things Task Continuous Functions Sequential Functions Activities

18. People Activities Sequential Functions Continuous Functions Task

19. People Activities Continuous Functions Sequential Functions Task

20. PM 5 Process Groups and 9 Knowledge Management Areas

21. Interpersonal Skills • Effective communication: The exchange of information. • Influencing the organization: The ability to “get things done”. • Leadership: Developing a vision and strategy, and motivating people to achieve that vision and strategy . • Motivation: Energizing people to achieve high levels of performance and to overcome barriers to change • Negotiation and conflict management: Conferring with others to come to terms with them or to reach an agreement • Problem solving: The combination of problem definition, alternatives identification and analysis, and decision-making.

22. The Deming Cycle: Continuous Quality Control • Plan (Create a project plan) • Do (Execute the project plan) • Check (Monitor & control project execution against the plan) • Action (Revise the project plan or execution)

23. Continuous Improvement

24. OODA Loop • John Boyd purposely chose "to do" something, rather than "to be" somebody, which he defined as one who gives up his integrity to get ahead in the system. He invented the OODA Loop and is considered as the most influential military theorist since Sun Tzu.  Source: http://www.asinc.com/images/OODA.jpg

25. The Business of the American People Is Business “After all, the chief business of the American people is business. They are profoundly concerned with producing, buying, selling, investing and prospering in the world. I am strongly of the opinion that the great majority of people will always find these the moving impulses of our life.” http://www.thisdayinquotes.com/2010/01/business-of-america-is-business.html

26. The Basic Module Map Customer-facing channel partners Customers 1. Develop product or service 2. Generate demand Business partners 5. Collaborate 3. Fulfil demand 4. Plan and manage the business IT providers Financial service providers

27. Process Classification Scheme: AA Global Best Practice KB Produce & deliver for product organization Operating processes Understand market & customer Develop vision & strategy Design products & services Invoice & service customers Market & sell Produce & deliver for service organization Develop & manage human resources Manage information/knowledge Management & support processes Manage financial & physical resources Execute environmental management program Manage external relationships Manage improvement and change Source: “A Note on Knowledge Management,” Harvard Business School 9-398-031, 1997.

28. Google’s Three Pitfalls of Managers • Have trouble transitioning to the team. • Lack a consistent approach to performance management and career development. • Spend too little time managing and communicating.

29. Eight Habits of Highly Effective Google Managers By examining data from employee surveys and performance reviews, Google’s people analytics team identified eight key behaviors demonstrated by the company’s most effective managers: Be a good coach. Empower your team, and do not micromanage. Express interest in team members’ personal success and well-being. Don’t be shy; be productive and results-oriented. Communicate and listen to your team. Help your employees with career development. Express a clear vision and strategy for the team. Demonstrate technical skills so you can help advise the team. *David A. Garvin, "How Google Sold Its Engineers on Management," Harvard Business Review, Dec 01, 2013.

30. The End!

31. Managing Innovation Discipline Quality Source: Video

32. Mastering the Building Blocks of Strategy Source: Link

33. Leadership Model (NASA) http://leadership.nasa.gov/Model/Influence.htm http://leadership.nasa.gov/Model/Influence.pdf

34. A Business Architecture Map Customer Facing Channel Partners Customers Business Suppliers 2. Generate Demand 1. Develop Product / Service 5. Collaboration 3. Fulfill Demand 4. Plan & Manage Business 3.1. Provide Service 3.2. Advanced Planning 3.3. Insurance 3.3.1 Sourcing and Supplier Contract Management 3.3.2 Issue Policy Level 4 3. Fulfill Demand 3.3 Insurance 3.3.2 Issue Policy - Communicate Status Request Resources Communicate Status 3.4. Produce Product 3.3.3 Receiving of Indirect / Capital Goods and Services 3.5. Logistics Logistics Providers Financial Service Providers

35. What A Process Map Doesn’t Do Where does this arrow come from? What’s the context to the rest of the business? Is this a stable View? Is “Send Fax” really a requirement? How is this measured? Who Is the “customer” of this? Are there compliance needs? Is this core to the business? Where’s the corporate boundary and where is the business boundary?

36. What is a Capability? • Communicate Status is the capability • Rigorous schema • Beyond “how” it is implemented, there is a great deal of other important information • Metrics – how is it measured? • Cost data • Service level (like a service level agreement with outsourcing) – how it is and how it should perform • Compliance and governance regulations • Owner • Customer • Does it directly contribute to the performance of the parent capability, or the department or the overall organization (core capability) • Is this capability a key part of what external organizations such as customers think of when they do business with the organization (identity/brand) • Etc.

37.  "Wizard of Westwood“ UCLA http://www.coachwooden.com/pyramidpdf.pdf

38. Psychological needs that the bulk of individually significant personality differences lies. • Behavior = Personality x Environment

39. Business Model Source: http://www.booz.com/media/uploads/Reshaping_Your_Company_Business_Model.pdf

40. Business Capability Mapping

41. http://0.tqn.com/d/management/1/0/j/B/Management-Skills-Pyramid_c.gifhttp://0.tqn.com/d/management/1/0/j/B/Management-Skills-Pyramid_c.gif