Classroom Presentations Presentation Format This is an outline of what I expect in the presentations. I will not determine what your theory has to be. However, if you theory has been presented many times, I hope you will find something new to present. You are welcome to do the presentation on the theory you described in one of your papers. That way you don’t have to work up a new theory. (You can if you want to.) Presentations will be limited to 3 minutes. With the number of students in the class, this will still take up a lot of our time. There is no requirement that slides be included. It can be just you talking! Presentation Structure: Grading will be very simple. Can I understand the basics of the theory from your presentation? Does your reason for applying the theory represent an appropriate application? Does your future change follow from you reason for applying the theory? Not getting to a component is equivalent to getting it wrong. Not Directly Graded but Important You are presenting to the Board of Directors. They have given you two minutes of their time to tell them about a theory you want to use in your organization going forward. You must describe the theory at a very general level. You must tell the Board why you think applying this theory is useful. You must say what you believe will improve after the theory has been implemented. Since this is the Board, they don’t want to be bogged down in detail, just the 30,000 foot view. Did your presentation add to the general understanding of this theory in the context of class. What will happen. Up to 6 people will be signed up to present each night. Presentations will occur at the start of class and after the break ( ½ each time) Except for the first night, there will be a mix of classroom and distance presentations. I will stop the presentation at 3 minutes even if you are just saying your final words. Corporate Culture Transition – Living Systems Model Individual (personality, values & attitudes) Group (personality, values & attitudes) Organization (personality, values & attitudes) Culture Exercise You are about to go on a job interview. Do you know the things you want/need from the organization you are about to join. Do you know the organization’s cultural statement? What needs to be there for you to be comfortable? Create 3 questions you would ask on an interview to help establish whether the actual culture is consistent with the stated culture. Pair up with neighbor and ask your culture questions. (If you are the person answering, just use your own company for the response.) Did you get any more information? Organizational culture Set of key characteristics that the organization values that distinguishes the organization from other organizations Culture’s Functions Boundary-defining role Conveys a sense of identity Facilitates the generation of commitment Enhances social system stability Sense-making and control mechanism How a Culture Begins Ultimate source of an organization’s culture is its founders Johnson & Johnson Our Credo We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality. We must constantly strive to reduce our costs in order to maintain reasonable prices. Customers' orders must be serviced promptly and accurately. Our suppliers and distributors must have an opportunity to make a fair profit. Johnson & Johnson Our Credo We are responsible to our employees, the men and women who work with us throughout the world. Everyone must be considered as an individual. We must respect their dignity and recognize their merit. They must have a sense of security in their jobs. Compensation must be fair and adequate, and working conditions clean, orderly and safe. We must be mindful of ways to help our employees fulfill their family responsibilities. Employees must feel free to make suggestions and complaints. There must be equal opportunity for employment, development and advancement for those qualified. We must provide competent management, and their actions must be just and ethical. Johnson & Johnson Our Credo We are responsible to the communities in which we live and work and to the world community as well. We must be good citizens – support good works and charities and bear our fair share of taxes. We must encourage civic improvements and better health and education. We must maintain in good order the property we are privileged to use, protecting the environment and natural resources. Our final responsibility is to our stockholders. Business must make a sound profit. We must experiment with new ideas. Research must be carried on, innovative programs developed and mistakes paid for. New equipment must be purchased, new facilities provided and new products launched. Reserves must be created to provide for adverse times. When we operate according to these principles, the stockholders should realize a fair return. Corporate Culture How we work sets us apart. We encourage hands-on innovation, involving those closest to a project in decision making. Teams organize around opportunities and leaders emerge. Our founder, Bill Gore created a flat lattice organization. There are no chains of command nor pre-determined channels of communication. Instead, we communicate directly with each other and are accountable to fellow members of our multidisciplined teams. How does all this happen? Associates (not employees) are hired for general work areas. With the guidance of their sponsors (not bosses) and a growing understanding of opportunities and team objectives, associates commit to projects that match their skills. All of this takes place in an environment that combines freedom with cooperation and autonomy with synergy. Corporate Culture . Everyone can quickly earn the credibility to define and drive projects. Sponsors help associates chart a course in the organization that will offer personal fulfillment while maximizing their contribution to the enterprise. Leaders may be appointed, but are defined by 'followership.' More often, leaders emerge naturally by demonstrating special knowledge, skill, or experience that advances a business objective. Associates adhere to four basic guiding principles articulated by Bill Gore: Fairness to each other and everyone with whom we come in contact Freedom to encourage, help, and allow other associates to grow in knowledge, skill, and scope of responsibility The ability to make one's own commitments and keep them Consultation with other associates before undertaking actions that could impact the reputation of the company National culture is… the unwritten rules of the social game the collective programming of the mind that distinguishes the members of one group from those of another the way you were brought up like your nose Copied from http://www.info.wau.nl/people/gertjan/presentations.htm Hofstede’s data for country culture Geert Hofstede, data collection ‘68-’72 Opinion survey with IBM, all levels, n > 100.000 Factor analysis of > 150 questions e.g. ‘How important is it to you to work with people who cooperate well with one another?’ central to factor individualism (+) / collectivism (-) (next to time for personal and family life and to factor masculinity (-) / femininity (+) (next to earnings, advancement) Replicated often, and confirmed Copied from http://www.info.wau.nl/people/gertjan/presentations.htm The five big issues of culture identity hierarchy Warriors vs. maidens / mothers? Or unisex? truth Are all people equal? Or born with a rank? gender Am I a unique individual? Or a group member? Are strange things dangerous? Or interesting? virtue Live for today? Or for later? Copied from http://www.info.wau.nl/people/gertjan/presentations.htm Organizational culture? If national culture is like your nose, organizational culture is like your hair-do: instilled at workplace changed through hiring and firing shared perception of common practices important as social glue for the organization NOT necessarily shared values MORE THAN strategy, propaganda, rhetoric Pioneering leaders have strong imprint Copied from http://www.info.wau.nl/people/gertjan/presentations.htm Mission Stability Innovation and risk taking Attention to Detail Characteristics of Organizational Culture Team Orientation People Orientation Outcome Orientation Organizational culture is concerned with how employees perceive the relative characteristics, not whether they like them Denison Organizational Cultural Survey Involvement Building Human Capability, Ownership, and Responsibility Empowerment ~ Team Orientation ~ Capability Development Involvement Empowerment Individuals • 100% • 75% • 50% • 25% have the authority, initiative, and ability to manage their own work. Information Decisions is widely shared. are made at the level where the best information is available. Involvement Team Orientation • 100% • 75% • 50% • 25% Cooperation and collaboration across functional roles are actively encouraged. Horizontal control vs. hierarchy is emphasized. Teams are seen as primary building blocks. Involvement Capability Development • 100% • 75% • 50% • 25% “Bench Strength” is constantly improving. Investment into the development of employees’ skills is ongoing. Capability of people is viewed as a competitive advantage. Consistency Defining the Values and Systems that are the Basis of a Strong Culture Core Values ~ Agreement ~ Coordination & Integration Consistency Core Values • 100% • 75% • 50% • 25% Managers “Practice what they Preach.” Organizational members share a set of values which create a strong sense of identity. An ethical code exists and guides the organization’s behavior. Consistency Agreement • 100% • 75% • 50% • 25% “Win-Win” Solutions are Achieved. The Organization has a “Strong” Culture. Reaching consensus is easy, even on difficult issues. Consistency • 100% • 75% • 50% • 25% Coordination & Integration People from different organizational units share a common perspective. Coordinating projects across functional units is easy. The business approach throughout the organization is very consistent and predictable. Adaptability Translating the Demands of the Business Environment into Action. Creating Change ~ Customer Focus ~ Organizational Learning Adaptability Creating Change • 100% • 75% • 50% • 25% Continuous internal improvement exists. Different organizational units cooperate to create change. Responding well to competitors and the external business environment is a priority. Adaptability Customer Focus • 100% • 75% • 50% • 25% Customer input directly influences decisions. Interests of the final customer seldom get ignored. Anticipating future needs of the customer is highly valued. Adaptability Organizational Learning • 100% • 75% • 50% • 25% Failure is seen as a “learning opportunity.” Innovation and risk-taking are encouraged and rewarded. It is clear that the “right hand knows what the left hand is doing” in the organization. Mission Defining a Meaningful Long-Term Direction for the Organization Vision ~ Strategic Direction & Intent ~ Goals & Objectives Mission Vision • 100% • 75% • 50% • 25% Leaders in this organization have a long-term orientation. Organizational members have a shared view of a desired future state. The organization’s vision creates excitement and motivation for employees. Mission Strategic Direction & Intent • 100% • 75% • 50% • 25% Meaningful purpose and direction exists in the organization. The organization has a clear strategy for the future. Clarity exists around how individual employees contribute to the organization’s strategy. Mission Goals & Objectives • 100% • 75% • 50% • 25% Goals and objectives are linked to the organization’s vision and strategy. Leaders set ambitious, but realistic goals. Continuously tracking progress against stated goals is the norm. Denison’s Cultural Model External Focus Outcome Orientation Innovation and risk taking Flexible Stable Stability Team Orientation People Orientation Attention to Detail Internal Focus Denison Organizational Culture Survey Denison Organizational Culture Survey Based On: 15 Years of Research 1,000 Organizations 40,000 Individuals Denison Organizational Culture Survey Correlates With: Profitability Quality Sales Growth Innovation Employee Satisfaction Denison Organizational Culture Survey 4 Cultural Traits Involvement Consistency Adaptability Mission Denison’s 12 Indexes Empowerment Creating Team Orientation Customer Capability Development Organizational Core Values Vision Agreement Strategic Coordination & Integration Goals Change Focus Learning Direction & Intent & Objectives Correlations Between Culture and Performance Mission & Consistency r ROA, ROI, ROS Consistency & Involvement r Quality, ROI, Employee Satisfaction r Product Development, Innovation r Revenue, Sales Growth, Market Share Involvement & Adaptability Adaptability & Mission r = Correlates With Denison Organizational Culture Survey Denison Organizational Culture Survey and supporting materials are copyrighted by Daniel Denison and William Neale. Reproduced by permission of the copyright holder. Strong Performing Companies Composite of companies that had an average ROI of 30 percent Weak Performing Companies Composite of companies that had an average ROI of 9 percent Hundred Year Old Manufacturing Company Still 1st in their industry but a company in decline 1st time in 20 years they have not met financial goals Being buffeted by competitors New President is operationally focused “We’re a team going down together” Trying to hold on to past glories Leading Retailer One of the fastest growing retailers in the world Strong sense of direction and purpose Tremendous ability to anticipate customer needs Customer service viewed as Achilles heel Not very operationally strong Telecommunications Considered the market leader in product and service innovation Highest customer service ratings in the country Stock price has doubled in past 3 years Rapid increase in revenue growth during past 5 years U.S. Government Agency Severe conflict between union and management Grievance rate increasing over past 10 years Quality and customer service described as inferior In red financially several times during past decade Management values tight controls on employees No employee development for 3 consecutive years Several reorganizations during past six years Threat of going out of business Automotive Supplier Revenue doubled over past 3 years, projected to double again over next 3 years Market position and share expanded rapidly around the world Current and past CEO known as industry visionary leaders Product quality a continuing problem Profitability has not kept pace with revenue growth Leading Software Company Fastest growing of their size in industry Highest profitability Highest revenue per employee Most growth has come through acquisitions Recently assigned a Vice President in charge corporate culture development and business partner relationships Denison Do Organizations Have Uniform Cultures? A dominant culture expresses the core values that are shared by a majority of the organization’s members Do Organizations Have Uniform Cultures? Subcultures tend to develop in large organizations to reflect common problems, situations, or experiences that members face A Socialization Model Show CBOC tenure data Managing Cultural Change Cultural change is most likely to take when the following conditions exist Dramatic crisis exists or is created Turnover in leadership Young and small organization Weak culture Paradox of Diversity Two Conflicting Goals Employees accept the organization’s dominant values Encourage the acceptance of differences Culture and Technology How does technology impact culture? Does it make some things easier? Does it make some things harder? Is it a critical factor or only a secondary issue? Good to Great – Jim Collins “The evidence from our study does not support the idea that technological change plays the principal role in the decline of once- great companies (or the perpetual mediocrity of others). Certainly, technology is important-you can’t remain a laggard and hope to be great. But technology by itself is never a primary cause of either greatness or decline. We were quite surprised to find that fully 80 percent of the goodto-great executives we interviewed didn’t even mention technology as one of the top five factors in the transition. Furthermore, in the cases where they did mention technology, it had a medial ranking of fourth whit only two executives of eightyfour interviewed ranking it number one. Organizational Structure and Human Resources Ages of Man Infancy Soldier (young adult Lover (teenager) Childhood Justice (accomplished adult) elderly Senility & death Why Create Structure? Organization Structure defines how job tasks are formally divided, grouped, and coordinated Work Specialization Division of labor Describes the degree to which activities in the organization are subdivided into separate jobs Departmentalization Basis by which jobs are grouped together Function Product Geography Process Customer Chain of Command Unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom Span of control - determines the number of levels and managers an organization has Trend in recent years has been toward larger spans of control Wide spans are consistent with efforts by companies to reduce costs, cut overhead, speed up decision making, increase flexibility, get closer to customers, and empower employees Contrasting Spans of Control Common Organizational Designs Simple structure Bureaucracy Matrix structure Simple Structure Low degree of departmentalization Wide spans of control Little formalization Difficult to maintain in anything other than small organizations Bureaucracy Highly routine operating tasks achieved through specialization Formalized rules and regulations Tasks that are grouped into functional departments Bureaucracy Centralized authority Narrow spans of control Decision making that follows the chain of command Formalization Degree to which jobs within the organization are standardized Job analysis Union Organizations – Why do unions prefer standardized jobs? Matrix Structure Combines two forms of departmentalization— functional and product Management responsibilities must be carefully agreed to. Management job descriptions must clarify responsibility Methods must be in place to establish how information will be gathered and reported. New Options The Team Structure The Virtual Organization The Boundaryless Organization <Position Title Goes Here> (Focus is on _________________) Intent: (General descripton of position The Work/Tasks: Interacts With: • Who person contacts Key Measures: • Measures • Tasks Skills/Attributes: • Experience component of job Decision Rights: • Decisions person can make alone Key Enablers: • Support required Manager, Business Administration (Focus is on Internal Business Operations) Intent: The Manager, Business Administration is responsible for ensuring the smooth operation of all internal, day-to-day aspects of Niagara Institute’s business including: finance and budgeting; invoicing and payables; facilities and supplier management; technology; contract administration; and Human Resource operations including Union relationship management. The Manager, Business Administration frees up the other functional leaders so they can focus on the work of their functions. Interacts With: The Work/Tasks: • All NI staff • Manages all aspects of the NI’s financial activities; financial analysis and tracking • Suppliers • Liaises with CBoC’s key operational departments as required: Finance, HR, Technology, etc. • CBoC counterparts • Union officials • Auditors • Taxation and other compliance officials Skills/Attributes: • Financial Management knowledge and skill • Knowledge of technology • Negotiation skills • Solid understanding of NI’s business and its critical success factors • Process improvement • Effective communicator; persuasive • Good interpersonal skills • Knowledge of HR operating practices • Excellent Administrative skills • Manages NI’s overall facilities requirements for NI’s own needs and to support program delivery • Contract Administration - Manages supplier contracts; ensures customer contract are in place to support work Key Measures: • % over or under budget (for NI’s operations) • Invoicing, receivables and payables managed within targeted time lines (cash flow management) • Employee satisfaction with: technology capability; efficiency and ease of use of internal business processes • Supplier contracts are current and competitive • Ensures appropriate HR processes are in place • Customer contracts held for all work started • Manages the Union relationship and contract negotiations • Compliance issues addressed in a timely fashion ( e.g. – up-to-date) • Ensures technology infrastructure is operational and appropriate to support business needs • Quality of union relationship; contract is current • Acts as the officer in charge for all business compliance issues Decision Rights: Key Enablers: • What is in budget or out of budget, once budget established and agreed by the Management Team • Budget required to effect changes in technology platform to support business needs • Appropriate technology to support business operations • Access to information ( from the three operating areas) • Union contract issues • Clear understanding of the boundaries within which to negotiate • Internal process changes (as relates to NI’s internal business operations – not customer processes) • Supplier contract issues (e.g. – as relates to facilities management) • Access to CBoC resources and support from them in key departments: finance, HR, technology • Client focused financial tracking system Mechanistic versus Organic Structures Strategy and Structure How do different structures produce different outcomes? Innovation Strategy Cost-Minimization Strategy Imitation Strategy Marketing/ Sales Strategy Globalization Strategy Organizational Structure and Employee Behavior Work Specialization Span of Control Centralization Job Opening and you are interviewing Use previous job description Generate one question you would ask of the interviewee Develop the kind of answer you would like to hear. Employee Selection Interview is the most widely used selection tool Results tend to have a disproportionate amount of influence on the selection decision Employee Selection The unstructured interview has been proven to be an ineffective selection device The data gathered from such interviews are typically biased and unrelated to future job performance Behavior Description Interviewing Best Predictor of Future Behavior is Past Behavior It is possible to ask questions that elicit descriptions of behavior. When asking such questions, you have to have follow ups planned but you cannot ask them in a rote manner. Inference is critical here. This is a very difficult task to do from the details. • Contract Administration - Manages supplier contracts; ensures customer contract are in place to support work • Can you tell me about a time when you had responsibility for managing suppliers for an organization? • What decisions could you make about suppliers? • How did your differentiate between suppliers • Did you have a difficult supplier you had to deal with? If yes, tell me about it. Written Tests Intelligence Aptitude Ability Interests Integrity Performance Simulation Tests Work samples Assessment centers Training Interpersonal Skills Diversity Training Basic Literacy Skills Problem Solving Skills Technical Skills Ethics Training Training vs Learning Formal training – What is the transfer of training? Informal training – Job shadowing, requesting help, partnering On-the-job training – A method for development while doing the work Off-the-job training – Schools, MBAs, etc. Career Development Organization’s responsibility is to build employee self-reliance and to help employees maintain their marketability through continual learning High Potentials What is a high potential? How are they identified? How are they developed? McCall – High Flyers Eleven Dimensions of Early Identification of Global Executives Seeks opportunity to learn Acts with Integrity Adapts to cultural differences Is committed to making a difference Seeks broad business knowledge Brings out the best in people Is insightful: sees things from new angles Has the courage to take risks Seeks and uses feedback Learns from mistakes Is open to criticism McCall, Morgan W. High Flyers: developing the next generation of leaders Harvard Business School Press, 1998. Organization’s Responsibility Clearly communicating the organization’s goals and future strategies Creating growth opportunities Offering financial assistance Providing the time for employees to learn Employee’s Responsibility Know yourself Manage your reputation Build and maintain network contacts Keep current Employee’s Responsibility Balance your specialist and generalist competencies Document your achievements Keep your options open Avoiding Negative Influences in Performance Appraisal Objectives employees seek are clear Criteria for measuring objectives are clear and known in advance Avoiding Negative Influences in Performance Appraisal Efforts made within employee capability are measured as satisfactory Performance as requested will lead to rewards valued by employee Criteria Evaluated Individual Task Outcomes Behaviors Traits Who Should Evaluate? Immediate Superior Peers Self-evaluation Immediate subordinates 360° feedback Performance Appraisal Methods Written Essays Critical Incidents Graphic Rating Scales Behaviorally Anchored Rating Scales Multi-person Comparisons Improving Performance Appraisals Emphasize behaviors rather than traits Document performance behaviors in a diary Improving Performance Appraisals Use multiple evaluators Evaluate selectively Train evaluators Provide employees due process Performance Feedback Manager’s reluctance Uncomfortable discussing performance weaknesses Employees become defensive Employees’ inflated assessment of own performance Training in conducting constructive feedback Team Performance Appraisals Tie the team’s results to the organization’s goals Begin with the team’s customers and associated work processes Team Performance Appraisals Measure both team and individual performance Train the team to create its own measures Performance Appraisal in Global Context Caution required in generalizing across cultures Many cultures are not particularly concerned with performance appraisal
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