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INTRODUCTION
Organizations allocate resources
to enable the mission, strategy
and goals to be accomplished. STRATEGY
For most organizations this will
include the allocation of
financial resources (through the
budget) and human resources.

Human resources will need to be

T R U C TU R E

S
organized in the most effective
and efficient manner to enable
the strategy and goal
Chandler, argued ‘structure-follows-strategy’.
attainment.

The overall pattern of structural components

and configurations used to manage the total
organization is termed the organization design
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DESIGN PURPOSE
Avoid duplication and ensure all necessary work is
undertaken, by allocating work to individuals and
group individuals performing similar work.
Through this division of work, individuals can
become specialists at a particular job (and therefore
more efficient).
The outputs of one person’s work may form the
inputs of another, i.e. different individuals and parts
of the organization become dependent upon each
other.
There are many people working towards a common
objective, a plan shows how the employees and
work will be organized.
The plan for the systematic arrangement of people
and work is the formal organization structure
(and associated business processes)
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ELEMENTS OF STRUCTURE
Tools used to add structure include:
Organizational chart
Job definitions/description
Span of control

Authority – the right to guide or direct the

actions of others
Responsibility – an obligation placed upon a
person, who occupies a certain position in the
organization structure, to perform a task,
function or assignment
Accountability – responsibility for some activity
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Basic organisation parts: Mintzberg’s model

Organizational structure is as much about power and authority as it is about grouping activities
and deploying key roles.

FIGURE 17.1 Mintzberg’s Model

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COMMON STRUCTURES – DESIGNS

The most common forms of ‘designed’ structure are as follows:

1) Functional organization – based on groupings of business functions such as

production, marketing, finance or HR.

2) Product-based organization – based on individual products, or product ranges,

where each grouping carries its own functional specialisms.

3) Geographical organization (area structure) – centred around appropriate

geographical features, e.g. regions, nations, subcontinents.
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COMMON STRUCTURES – DESIGNS

1) Functional organization

Based on
groupings of
business functions
such as
production,
marketing,
finance or HR.

Functional structure
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COMMON STRUCTURES – DESIGNS

2) Product-based organization

Based on
individual
products, or
product ranges,
where each
grouping carries
its own
functional
specialisms.

Product-based structure
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COMMON STRUCTURES – DESIGNS

3) Geographical organization

(area structure)
– centred around
appropriate
geographical
features, e.g.
regions, nations,
subcontinents.

Geographically based structure

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Divisional structure

Divisional structure
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SONY STRUCTURE

Product-
based
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DETERMINANTS OF DESIGN
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ALTERNATIVE DESIGNS
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Organizing Work
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Purposes of job design

1) To organize the work of employees so that corporate goals
and objectives are attained through the efficient and
effective utilization of human resource.

2) To improve the performance of employees by enhancing

motivation, job satisfaction and employee engagement by
making work meaningful, interesting and challenging.

3) To reduce stress and improve work–life balance and the

quality of working life.
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Job design process

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MOTIVATIONAL APPROACHES: JOB DESIGN

Determinants
 Discussion
A recent study found that sitting for more than three hours a
day takes years off your life expectancy. To promote better
health, many companies are now using standing desks.
Forbes is one of those companies. View this video to see
the various types of standing desks employees at Forbes
are using.

“Stand for Your Life!”

https://www.youtube.com/watch?v=EiKfHD9cV8U

Copyright ©2019 Cengage. All Rights Reserved.

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job satisfaction
Three main approaches to achieving increased job satisfaction at
work through task restructuring. These are

(1) job enlargement: The process of adding a greater

variety of tasks to a job

(2) job enrichment: Enhancing a job by adding more meaningful

tasks and duties to make the work more rewarding or satisfying
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CONTEMPORARY WORK DESIGN

work–life balance
Advances in technology (Internet and telecommunications) have enabled
remote, teleworking and homeworking. Additionally, flexibility in working
hours has led to flexible working – an arrangement whereby the start and
finish times of a worker may be varied whilst not exceeding the daily/weekly
hours of a normal working day/week over a predetermined period

job sharing
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Managing Employee Motivation and Performance

10–21
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The Nature of Motivation

Motivation
The set of forces that cause people
to behave in certain ways.

Determinants of Individual Performance

Motivation
Ability
Work environment

10–22
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Content Perspectives on Motivation

Content Perspectives
Focus on needs and deficiencies of individuals
“What factors in the workplace motivate people?”

Content Perspectives of Motivation

Maslow’s Hierarchy of Needs
Herzberg’s Two-Factor Theory
McClelland’s Achievement, Power,
and Affiliation Needs

10–23
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Maslow’s Hierarchy of Needs

Attending to basic survival and biological
Physiological functions.

Seeking a safe physical and emotional

Security environment.

Belongingness Experiencing love and affection.

Having a positive self-image/self-respect

Esteem and recognition and respect from others.

Realizing one’s potential for personal

Self-actualization growth and development.

10–24
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Maslow’s Hierarchy of Needs

NEEDS
General Examples Organizational Examples

Self- Challenging
Achievement actualization job

Job
Status Esteem
title

Friends
Friendship Belongingness
at work

Pension
Stability Security
plan

Base
Food Physiology
salary
10–25
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The Needs Hierarchy Approach

Contributions of Maslow’s Theory
Identified and categorized individual needs.
Emphasized importance of needs to motivation.

Weaknesses of Maslow’s Theory

All levels of need are not always present.
Ordering or importance of needs is not always the
same.
Cultural differences can impact the ordering and
salience of needs.

10–26
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The Two-Factor Theory (Herzberg)

Theory Assumptions:
Satisfaction and dissatisfaction are influenced
by two independent sets of factors on two distinct
continuums:
Motivational factors (work content) range from
satisfaction to no satisfaction.
Hygiene factors (work environment) range from
dissatisfaction to no dissatisfaction.

10–27
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The Two-Factor Theory of Motivation

Work Content Work Environment

Motivation Factors Hygiene Factors

• Achievement • Supervisors
• Recognition • Working conditions
• The work itself • Interpersonal relations
• Responsibility • Pay and security
• Advancement • Company policies and
and growth administration

Satisfaction No satisfaction Dissatisfaction No dissatisfaction

• Ensuring that deficient hygiene factors are not blocking motivation.

• Using job enrichment and redesign of jobs to increase motivational factors
for employees. 10–28
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Individual Human Needs (McClelland)

The desire to accomplish a goal or task
Need for Achievement more effectively than in the past.

The desire for human companionship and

Need for Affiliation acceptance.

The desire to be influential in a group and

Need for Power to be in control of one’s environment.

10–29
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Process Perspectives on Motivation

Process Perspectives
Focus on why people choose certain behaviors to
satisfy needs and how they evaluate satisfaction
after they have attained goals.

Process Perspectives of Motivation

Expectancy Theory
Porter-Lawler Extension of Expectancy Theory
Equity Theory
Goal-Setting Theory

10–30
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Expectancy Theory
Motivation depends on how much we want something and how likely we are
to get it.
Theory assumes that:
Behavior is determined by personal and
environmental forces.
People make decisions about their own behavior.
Different people have different types of needs,
desires, and goals.
People choose among alternatives of behaviors in
selecting one that that leads to a desired outcome.

10–31
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The Expectancy Model of Motivation

10–32
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Elements of Expectancy Theory

Effort-to-Performance Expectancy
The individual’s perception of the probability that effort will lead to a high level of
performance.

Performance-to-Outcome Expectancy
The individual’s perception of the probability that performance will lead to a
specific outcome, or consequence or reward in an organizational setting.

Valences
An index of how much an individual values a particular outcome. It is also the
attractiveness of the outcome to the individual.
Outcomes (Consequences)
Attractive outcomes have positive valences and unattractive outcomes have
negative valences.
Outcomes to which an individual is indifferent have zero valences.

10–33
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The Equity Theory Process
Outcomes (self) = Outcomes (other)
Inputs (self) = Inputs (other)
Motivation to
Perception
Change
of Inequity
Something
Comparison
of Self with
Others
Motivation to
Perception
Keep Everything
of Equity
the Same

10–34
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Goal-Setting Theory
Theory’s Assumptions
Behavior is a result of conscious
goals and intentions.
Setting goals influences behavior
in organizations.
Characteristics of Goals
Goal difficulty
Goal specificity
Goal acceptance
Goal commitment

10–35
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Organising For Innovation

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KEY CONCEPTS
The Innovating organisation: Organisations designed to do
something for the first time - those that recognise and formalise
the roles, processes, rewards, and people practices which
naturally lead to innovations

Entrepreneurship concerns the identification and exploitation of previously

unexploited opportunities. It often requires the organization to be both
creative (the ability to produce novel and useful ideas) and innovative
(implementation of new ideas).
Creativity is the ability to produce novel and useful ideas and can lead to new
products and services, novel applications and cost savings.
Innovation is ‘the first, practical, concrete implementation of an idea done in
a way that brings broad-based, extrinsic recognition to an individual or
organization
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ENTREPRENEURSHIP
ENTREPRENEURSHIP
= INNOVATION + RISK TAKING + OPPORTUNITY
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BUREAUCRACY – DYSFUNCTIONS
‘bureaucracy should be treated as a continuum’
Dehumanizes the organization and
makes it machine-like, focusing on
routine

Slow to adapt - (rules introduce delays)

rules stifle initiative and creativity
prevention of employee contribution
formalization reduces employee risk Effectiveness
taking
Efficiency
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THE EMPOWERED EMPLOYEE

Drivers for empowerment may include:

– requirement to be more responsive to the marketplace

– reduction in number of levels in structures – so-called delayering
– need for horizontal collaboration and communication amongst work teams
with minimal supervision
– allows senior management to concentrate on longer-term (strategic) issues
– need to make best use of all available resources (especially human
resources)
– pressure to meet the higher expectations of a better-educated workforce
– the development of ‘learning organizations’.
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Dimensions of empowerment
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WHAT IS ENGAGEMENT?
… an individual’s involvement and
satisfaction with, and enthusiasm for, the
work they do

Engaged employees are open to new ideas,

willing to change, have a customer focus
and are confident in their ability.
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Key drivers of engagement

• Work design: it is important to have challenging, creative and varied work
• Meaningful and purposeful work: work should be seen by employees as
important; employees understand how they contribute
• Developmental opportunities
• Timely recognition and rewards
• Good relationships between co-workers, especially between employee and
manager
• Inspiring leaders and managers inspire confidence in individuals, giving
them autonomy to make decisions.
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Factors that limit or damage engagement

• Job insecurity
• Unfairness, particularly in reward and pay systems
• Jobs with no space, i.e. repetitive work with short cycle times
• Highly stressful jobs with very little flexibility or autonomy
• Poor line management behaviour and bullying
• Working for long periods of time without a break
• Lack of trust
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Engagement culture

FIGURE 20.3
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Leading viewed in relationship to the

4 other management functions
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Social Mobility & Emotional Intelligence

17
 The ability of people to manage emotions
in social relationships
 Characteristics of the emotionally
intelligent leader:
High self-awareness
Motivated and persistent
High social awareness
 Good self management
 Good relationship management
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Visionary leadership
9

 Vision
 A future that one hopes to create or
achieve in order to improve
upon the present state of affairs
 Visionary leadership
 A leader who brings to the situation
a clear and compelling sense of the
future as well as an understanding of
the actions needed to get there
successfully
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23
Leadership Theories

http://youtu.be/XKUPDUDOBVo
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What are the important leadership

traits and behaviors?
16

Drive

Honesty
and Self-
confidence
integrity

Important Social
traits for
Flexibility leadership Creativity
Mobility
success

Cognitive
Motivation ability
Business
knowledge
Planning
 Planning

Planning
management process of determining what an
organization needs to do and how best to get it done

Planning has three main components. It begins when

managers determine the firm’s goals. Next, they develop a
comprehensive strategy for achieving those goals. After a
strategy is developed, they design tactical and operational
plans for implementing the strategy.

3–2
 Planning Process

3–3
 Organizational Goals
Purposes of Goals

Guidance and unified Promotion of good Evaluation

Source of motivation
direction planning and control

Purposes of Goals:
Provide guidance and a unified direction for people in the organization.
Have a strong effect on the quality of other aspects of planning.
Serve as a source of motivation for employees of the organization.
Provide an effective mechanism for evaluation and control of the
3–4 organization.
 Organizations Have a Purpose—
That’s Why They Need Goals

Identification

Adaptation Integration
Uses for Goals in
Organizations

Collaboration Revitalization

3–5
 Kinds of Organizational Goals

Setting Organizational Goals

By Level By Area By Time Frame

Mission statement Operations Long-term goals
Strategic goals Marketing Intermediate goals
Tactical goals Finance Short-term goals
Operational goals Production Explicit goals
Open-ended goals

3–6
What Goals Do

• By Level
• Mission statement is a statement of the organization’s fundamental purpose.
• Strategic goals, set by top management, address broad competitive issues.
• Tactical goals, set by middle managers, that focus on how to operationalize
actions to strategic goals.
• Operational goals, set by lower-level managers, focus on actions in support of
tactical goals.

3–7
 Planning Flow in Organizations

Strategic Plans
(upper management)

Tactical Plans
(middle management)

Operational Plans
(lower-level managers)

3–8
 Kinds of Organizational Plans

• Strategic Plans
• Are general plans outlining resource allocation, priorities, and action steps to
achieve strategic goals.
• Are set by and for top management.
• Tactical Plans
• Are aimed at achieving the tactical goals set by and for middle management.
• Operational Plans
• Have a short-term focus.
• Are set by and for lower-level managers.

3–9
Time Frames for Planning
• The Time Dimension of Planning
Planning must provide sufficient time to fulfill the managerial commitments involved.

1 5 10

Long-range (strategic)
plans of 5 or more years

Intermediate-range
(tactical) plans of 1–5 years

Short-range (operational)
action and contingency
plans of 1 year or less
Years

3–10
 The Nature of Strategic Management

• Strategy
A comprehensive plan for accomplishing an organization’s goals.
• Strategic Management
The comprehensive and ongoing process of formulating and
implementing strategies to approach business opportunities and
challenges.

Effective Strategies
Promote a superior alignment between organization and
environment and achievement of goals.
3–11
Strategic Management
The first step in strategic management is to define an explicit strategy

A Strategy is a plan of action that describes resource allocation and activities for
dealing with the environment, achieving a competitive advantage, and
attaining the organization’s goals

Competitive advantage refers to what sets the organization apart from others
and provides it with a distinctive edge for meeting customer or client needs in
the marketplace

The essence is How the organization will be different

12
The Strategic Management Process:
SWOT Analysis

3–17
SWOT Analysis: Evaluating Strengths
• Organizational Strengths
• Skills and abilities enabling an organization
to conceive of and implement strategies.
• Distinctive Competencies
• Strengths possessed by only a small number of competitors that are useful for
competitive advantage and superior performance.
• Competitive Advantage
• Results from a firm exploiting its unique competencies to attain superior
performance.

3–18
 SWOT Analysis: Evaluating Weaknesses

• Organizational Weaknesses
• Insufficiencies of skills and capabilities that limit an organization’s choice of
strategic actions in support of its mission.
• Weaknesses can be overcome by:
• Making investments to obtain the strengths needed.
• Modifying the organization’s mission so it can be accomplished with the
current workforce.

3–19
 Evaluating an Organization’s
Opportunities and Threats
• Organizational Opportunities
• Areas in the organization’s environment that may generate higher
performance.
• Organizational Threats
• Areas in the organization’s environment that make it difficult for the
organization to achieve high performance.

3–20
What are the essentials of strategic analysis?
Drucker’s strategic questions for strategy
formulation:

• What is our business mission?

• Who are our customers?
• What do our customers consider value?
• What have been our results?
• What is our plan?

Early 1900s Current

 Democratize the automobile  To become the world's leading
Consumer Company for automotive
products and services
24
Competitive Advantage
• The term competitive advantage describes an organization’s ability to
use resources so well that it performs better than the competition.

• Typical sources of competitive advantage are

• Technology—using technology to gain operating efficiencies, market exposure,
and customer loyalty.
• Cost and quality—operating with greater efficiency and product or service
quality.
• Knowledge and speed—doing better at innovation and speed of delivery to
market for new ideas.
• Barriers to entry—creating a market stronghold that is protected from entry by
others.
• Financial resources—having better investments or loss absorption potential
than competitors.
25
 How can a strategy be effective…
Synergy can create additional value with existing
defines the customers and which of their needs are
resources, providing a
to be served
Business car rental companies, car manufacturer
big boost to the bottom line
FMCG Manufacturers exploiting their distribution channels
segmentation like Mercedes, Volvo
& sales force

Creating & delivering value to the customer is the

Core Competence is something that the organization heart of strategy
does especially well in comparison to its competitors Like loyalty cards in starbucks & hotels, dinner at movie
Cost leadership at Walmart theaters
26
 Purpose of Strategy
• Strategy:
• Plan of action
• Resource allocation
• Activities for dealing with the environment
• Achieving competitive advantage

• Strategy should:
• Exploit Core Competence
• Build Synergy
• Deliver Value
27
 The Strategic Management Process
2 3

8
6 7

4 5 28
A corporate strategy is one that specifies what businesses a company is in or wants to be in and what it wants to
do with those businesses.
 Corporate-Level Strategies

Strategic Choices

Single-product Related Unrelated

strategy diversification diversification
(simplicity) (synergy) (risk/return)

3–30
Concentration: Focusing on a primary line of business and increasing the number of products offered or markets served.
Vertical Integration:
−Backward vertical integration: attempting to gain control of inputs (become a self-supplier).
−Forward vertical integration: attempting to gain control of output through control of the distribution channel or
provide customer service activities (eliminating intermediaries).
Horizontal Integration: Combining operations with another competitor in the same industry to increase competitive strengths
and lower competition among industry rivals.
Related Diversification: Expanding by combining with firms in different, but related industries that are “strategic fits”.
Unrelated Diversification: Growing by combining with firms in unrelated industries where higher financial returns are possible.
 Implementing Related Diversification
A strategy in which an organization operates in several different businesses,
industries, or markets that are somehow linked

Bases of Diversification Relatedness:

.

Similar Common Common brand Common

technology marketing and name and customers
resources distribution skills reputation and markets

3–32
 Related Diversification’s Advantages

Competitive Advantages
of Related Diversification

Creation of economies of Synergistic sharing of

Reduction of business
scale and strengths and
and economic risk
scope competencies

3–33
 Unrelated Diversification

• Unrelated Diversified Organization

• Operates multiple businesses that are not logically associated with one another.

• Advantages
• Resources can be allocated to areas with the highest return potentials to maximize
corporate performance.

• Disadvantages
• The strategy does not usually lead to high performance due to the complexity of
managing a diversity of businesses.
• Firms with unrelated strategies fail to exploit important synergies, putting them at a
competitive disadvantage to firms with related diversification strategies.

3–34
 Developing and Executing
Tactical Plans

Developing tactical plans Executing tactical plans

• Recognize and understand • Evaluate each course of action
overarching strategic plans in light of its goal
and tactical goals • Obtain and distribute
• Specify relevant resource and information and resources
time issues • Monitor horizontal and vertical
• Recognize and identify human communication and integration
resource commitments of activities
• Monitor ongoing activities for
goal achievement

3–37
 Types of Operational Plans

Single-use Plans Developed to carry out a course of action not likely

to be repeated in the future

Program Single-use plan for a large set of activities

Project Single-use plan of less scope and complexity

than a program

Standing Plans Developed for activities that recur regularly over a

period of time

Policy Standing plan specifying the organization’s general

response to a designated problem or situation

Standard operating Standing plan outlining steps to be followed in

procedure particular circumstances

Rules and regulations Standing plans describing exactly how specific

3–38 activities are to be carried out
 Contingency Planning and Crisis Management

• Contingency Planning
• The determination of alternative courses of action to be taken if an intended
plan is unexpectedly disrupted or rendered inappropriate.
• Crisis Management
• The set of procedures the organization uses in the event of a disaster or other
unexpected calamity.

3–39
Contingency Planning

3–40
 Formulating Business-Level Strategies

Porter’s Generic
Strategies

Differentiation Overall cost Focus

strategy leadership strategy strategy

Differentiation Strategy
Seeking to distinguish an organization from its competitors through the quality of its products or services.
Overall Cost Leadership Strategy
Attempting to gain competitive advantage by reducing overall costs below the costs of competing firms.
Focus Strategy
Concentrating on a specific regional market, product line, or group of buyers
3–41
 Competitive advantage can be achieved through:
10

COST
> operate with lower costs than competitors and thus earn profits
with prices that competitors have difficulty matching.
QUALITY
> create products and services that are of consistently higher
quality for customers than what is offered by competitors.
DELIVERY
> outperform competitors by delivering products and services to
customers faster and on time, and by developing timely new
products.
FLEXIBILITY
> adjust and tailor products and services to fit customer needs in
ways that are difficult for competitor to match
 Strategies Based on the Product Life Cycle

Product Life Cycle

A model that shows sales volume changes over the life of products.
• Introduction stage: demand may be very high and sometimes outpaces
the firm’s ability to supply the product.
• Growth stage: more firms begin producing the product, and sales
continue to grow.
• Mature stage: overall demand growth begins to slow down.
• Decline stage: demand for product decreases.

3–43
The Product Life Cycle: is a model that shows how sales volume changes over the
life of products. Understanding the four stages in the product life cycle helps
managers recognize that strategies need to evolve over time.

Life Cycle Stages

High

Introduction Growth Maturity Decline

Sales Volume

Low Time

3–44
 Product Life Cycle could be used as a framework for plotting different
strategies over the life of a product.
In the introduction stage, demand may be very high and sometimes outpaces the firm’s ability to supply the product. At this
stage, managers need to focus their efforts on “getting product out the door” without sacrificing quality. Managing growth
by hiring new employees and managing inventories and cash flow are also concerns during this stage.

During the growth stage, more firms begin producing the product, and sales continue to grow. Important management
issues include ensuring quality and delivery and beginning to differentiate an organization’s product from competitors’
products. Entry into the industry during the growth stage may threaten an organization’s competitive advantage; thus,
strategies to slow the entry of competitors are important.

After a period of growth, products enter a third phase. During this maturity stage, overall demand growth for a product
begins to slow down, and the number of new firms producing the product begins to decline. The number of established
firms producing the product may also begin to decline. This period of maturity is essential if an organization is going to
survive in the long run. Product differentiation concerns are still important during this stage, but keeping costs low and
beginning the search for new products or services are also important strategic considerations.

In the decline stage, demand for the product or technology decreases, the number of organizations producing the product
drops, and total sales drop. Demand often declines because all those who were interested in purchasing a particular
product have already done so. Organizations that fail to anticipate the decline stage in earlier stages of the life cycle may go
out of business. Those that differentiate their product, keep their costs low, or develop new products or services may do
well during this stage.
 The International Business Environment
14

It took McDonald’s more than a year to figure out that Hindus in India do not
eat beef because they consider the cow sacred. The company’s sales took
off only after McDonald’s started making burgers sold in India out of lamb.

When IKEA launched a superstore in Bangkok, managers learned that some of

its Swedish product names sound like crude terms for sex when pronounced in
Thai.

In Africa, the labels on bottles show pictures of what is inside so illiterate

shoppers can know what they’re buying. When a baby-food company
showed a picture of an infant on its label, the product didn’t sell very well.

United Airlines discovered that even colors can doom a product. The airline
handed out white carnations when it started flying from Hong Kong, only to
discover that, to many Asians, such flowers represent death and bad luck
 History of Management

• https://youtu.be/vNfy_AHG-MU
 Management Perspectives Over Time
4
5
Classical approach to management

Administrative Principles
Henry Fayol

Scientific Management
Frederick Taylor Bureaucratic
Organization
Max Weber

Classical
approaches
Assumption:
People are
Rational
6
Frederick Winslow Taylor (1856-1915), father of
scientific management

> Focus on improving efficiency and labor

productivity
> Workers could be retooled like machines
> Managers would need to change
> Incentive systems for meeting standards
> Lillian M. Gilbreth added a human component
to the study
> Time & Motion study
https://youtu.be/DfGs2Y5WJ14
American Mechanical
Engineer
Henri Fayol (1841-1925), Administrative
Principles
> Identified Administrative principles:
> Unity of Command
> Division of Work
> Unity of Direction
> Scalar Chain
> Fayol identified five functions of
management: Planning, Organizing,
Commanding, Coordinating, and
Controlling
French Mining Engineer
Max Weber (1864 –1920), Bureaucratic
organization
> Rational authority—more efficient and
adaptable to change

> Selection and advancement would

be focused on competence and
technical qualifications

> The term bureaucracy has taken on a

negative tone, associated with endless
“red tape”

German
sociologist,
philosopher, jurist,
and political
economist
Foundations in the behavioral or human resource
approaches to management

Organizations
as
communities
Mary Parker
Follett Theory X and
Hawthorne
Theory Y
studies
Douglas
Elton Mayo
McGregor

Human resource
Theory of approaches
Personality and
human needs Assumption:
People are organization
Abraham
social and self- Chris Argyris
Maslow
actualizing
 Mary Parker Follett (1868 –1933),
Mother of Modern Management

> Organizations as communities

> A Humanistic perspective on management that emphasized
the importance of understanding human behaviors, needs,
and attitudes in the workplace as well as social interactions
and group processes
> Non-coercive power-sharing based on the use of her
concept of "power with" rather than "power over

American social worker, management

consultant, philosopher.
11
Hawthorne Studies, Human Relations
Movement
> Control comes from the individual worker
rather than authoritarian control

> The Hawthorne studies found increased output due to

managers’ better treatment of employees

> Money mattered a great deal

> Productivity increased from feelings of importance

> Created a focus on positive treatment of

employees
Maslow’s hierarchy of human needs
Organizational Effectiveness and
Quality of Life at Work
Theory X vs. Theory Y

1-12
18
The Systems View of Organizations
19 Contingency View of Management

• Managing in different & changing situations

• Requires manager to use different approaches & techniques
• Contingency perspective: different ways of managing are required in
different organizations & different circumstances
• Stresses that there are no simplistic or universal rules
20 Total Quality Management

W. Edward Deming, known as the father of the

quality movement
During the 1908s and 1990s, quality became a focus
to meet global competition
Four key elements of quality management:
• Employee involvement
• Focus on customer
• Benchmarking
• Continuous improvement
 Foundations of modern management
thinking?
Learning organizations
• Organizations that are able to continually learn and adapt to new
circumstances
• Core ingredients include:

Mental Personal Systems Shared Team

models mastery thinking vision learning
 Managing the Technology-Driven Workplace

• Most work is performed on computers in today’s workplace

• Companies use technology to communicate and collaborate

Key technologies in today’s workplace:

• Supply Chain Management

• Customer Relationship Management
• Outsourcing
 FIGURE 2.1 McDonald’s Task Environment

2–22
 The Organization’s Environments

• External Environment
- General environment is a set of broad dimensions and forces in an organization’s
surroundings that determine its overall context.
- Task environment is composed of specific groups and organizations that affect the
firm.
• Internal Environment
Conditions and forces within an organization.

2–23
 External Environment
• External environments: All events outside a company that can influence or
affect it
P Political •Changes in the government policy, such as changes in interest rate policy
or taxes

E Economic •Levels of inflation, economic growth, unemployment and international trade

S Social • Study population growth, consumer attitudes, age structure, or lifestyle changes

• Technological changes can impact demand. Advancement in technology can

T Technological create new markets and new opportunities

•All businesses impact their environment either be negative or positive. It is negative

E Environmental in cases of pollution or waste. It can be positive when the environment gets benefits
like processing and cleaning waste

L
•The legal limits, regulations& laws such as health, safety, employment and even
Legal competition.
 The Internal Environment

Conditions and forces within an organization

• Owners with legal property rights to a business.
• Board of directors who oversee management of the firm to best serve
stockholders’ interest.
• Employees who work for the firm and have a vested interest in its continued
operation and existence.
• Physical work environment of the organization and the work that people do.

2–26
2–27
 Individual Ethics In Organizations

• Ethics
• An individual’s personal beliefs regarding what is
right or wrong or good or bad.
• Ethical Behavior
• Behavior that is acceptable in the eye of the
beholder.
• Behavior that conforms to accepted social
norms.
• Examples of Unethical Behavior
• “Borrowing” office supplies for personal use.
• Checking Facebook on company time.

2–28
 Determinants of Individual Ethics

Family Situational Values and Peer

Experiences
Influences Factors Morals Influences

Individual Ethics

2–29
 • Conflicts of interest
• Secrecy and
confidentiality
Managerial Ethics • Honesty

Employees Organization

• Hiring and firing

• Wages and working
Areas of concern for conditions
managerial ethics: • Privacy and respect

•How the firm treats

the employee. Subject to ethical ambiguities
• Advertising and promotions
• Ordering and purchasing
•How the employee • Bargaining and negotiation
treats the firm. • Financial disclosure
• Shipping and solicitation
•How the firm treats • Other business relationships

other economic
agents. Economic Agents
• Customers
•How the firm • Competitors
handles its financial • Stockholders
• Suppliers
reporting • Dealers
• Unions
 Fostering Ethical Organization Behavior

Managing Ethical Behavior

Top Management Train Written Code

Involvement Employees of Ethics

Individual Issues:
Behavior, Conscience, Privacy

2–31
 Ethics in Organizations

• Managing Ethical Behavior

• Begins with top management that:
• Establishes a strong culture and defines what will and will not be
acceptable behavior.
• Provides ethical leadership by serving as ethical role models.
• Includes
• Training on how to handle ethical dilemmas.
• Developing a code of ethics.

2–32
A Guide for Ethical
Decision Making

2–33
Stakeholders and Ethics:
Stakeholder: Someone with a share or interest in a business enterprise.
• Not every stakeholder will be relevant in every business situation.

Concerns in terms of ethical operations.

• Involvement of the stakeholders with the actions of the organization.
• Extent to which they would be impacted by unethical behavior.

Copyright © 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Stakeholder Interests:
Stakeholders Interest in the Organization

Stockholders or shareholders • Growth in the value of company stock.

• Dividend income.

Employees • Stable employment at a fair rate of pay.

• A safe and comfortable working environment.

Customers • “Fair exchange”—a product or service of acceptable value and

quality for the money spent.
• Safe and reliable products.

Suppliers/vendor partners • Prompt payment for delivered goods.

• Regular orders with an acceptable profit margin.

Retailers/wholesalers • Accurate deliveries of quality products on time and at a

reasonable cost.
• Safe and reliable products.

Copyright © 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Stakeholder Interests 2

Stakeholders Interest in the Organization

Federal government • Tax revenue.

• Operation in compliance with all relevant legislation.

Creditors • Principal and interest payments.

• Repayment of debt according to the agreed schedule.

Community • Employment of local residents.

• Economic growth.
• Protection of the local environment.

Copyright © 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Stakeholder Impact from Unethical Behavior :
Stakeholders Interest in the Organization
Stockholders or shareholders • False and misleading financial information on which to
base investment decisions.
• Loss of stock value.
• Cancellation of dividends.

Employees • Loss of employment.

• Not enough money to pay severance packages or meet
pension obligations.

Customers • Poor service quality (as WorldCom struggled to combine

the different operating and billing systems of each
company it acquired, for example).

Suppliers/vendor partners • Delayed payment for delivered goods and services.

• Unpaid invoices when the company declared bankruptcy.

Copyright © 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Stakeholder Impact from Unethical Behavior:
Stakeholders Interest in the Organization

Federal government • Loss of tax revenue.

• Failure to comply with all relevant legislation.

Creditors • Loss of principal and interest payments.

• Failure to repay debt according to the agreed schedule.

Community • Unemployment of local residents.

• Economic decline.

Copyright © 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Factors Ensuring Ethical Conduct
• Corporate governance: System by which business corporations are directed and
controlled. Built upon four key principles: accountability, transparency, fairness and
responsibility.

• Code of ethics: Company’s written standards of ethical behavior that are designed
to guide managers and employees in making the decisions and choices they face
every day.

Copyright © 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Dual Function of Code of Ethics
Serves as:

• A message to the organization's stakeholders.

• Represents a commitment to the highest standards of ethical
behavior.
• An internal document.
• Represents a guide managers and employees in making the decisions
and choices.

Copyright © 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
 Social Responsibility
The set of obligations (to behave responsibly) that an organization has to protect and enhance the social
context in which it functions.

The Stakeholders The Environment

customers, employees, and environmentally sensitive products,
investors recycling, and public safety.

Social Responsibility
of Organizations

The General Social Welfare

charitable contributions, and support for
social issues such as child labor and human
rights
2–41
 Arguments for and against Social Responsibility
Arguments for Arguments against
Social Responsibility Social Responsibility

Social
Responsibility

2–42
How Business and Government Influence Each
Other

2–43
 The Context of International Management
Political/Legal Economic Cultural
Environment Environment Environment
Government stability Economic system Values, symbols,
Incentives for Natural resources beliefs, and language
international trade Individual differences
Infrastructure
Controls on across cultures
international trade
Economic
communities

International Management Functions

2–44
 The Cultural Environment

• Language
• The Japanese word “hai” can mean either “yes” or “I understand.”
• General Motors’ brand name “Nova” pronounced as “no va” in Spanish
means “doesn’t go.”
• The Meaning of Colors
• Green is popular in Muslim countries, yet it signifies death in other countries.
• Pink is associated with feminine characteristics in the U.S.; yellow is the most
feminine color in other countries.

2–45
 The Organization’s Culture

• Organization Culture
• The collection of values, beliefs, behaviors, customs, and attitudes that
characterize a community of people.
• The Importance of Organization Culture
• Culture determines the overall “feel” of the organization, although it may vary
across different segments of the organization.
• Culture is a powerful force that can shape the organization’s overall
effectiveness and long-term success.

2–46
 Determinants of Organization Culture

• Organization’s founder (personal values and beliefs).

• Symbols, stories, heroes, slogans, and ceremonies that embody and
personify the spirit of the organization.
• Corporate success that strengthens the culture.
• Shared experiences that bond organizational members together.

2–47
 Managing Organization Culture

• Understand the current culture to understand whether to maintain or

change it.
• Articulate the culture through slogans, ceremonies, and shared
experiences.
• Reward and promote people whose behaviors are consistent with
desired cultural values.

2–48
Change management (adkar, lwein..
Contemporary Management
Course Code: MNG914

Dr. Shaymaa Farid Fawzy

Mobile: 01062153445
E-mail: [email protected]
Contemporary Management
 Organization

• A deliberate arrangement of people brought together to accomplish a

specific purpose.
Common Characteristics of Organizations
• Goals
• People
• Structure
2
The Importance of Organizations
27
Major Stakeholder Groups and What They Expect
WHAT IS MANAGEMENT? Craft

Art

Science
 Management is…

  The organization and coordination of

the activities of a business in order to achieve
defined objectives.
  Management isoften included as
 a factor of production along with machines, materials,
and money. According to the management guru
Peter Drucker (1909-2005), the basic task of
management includes both marketing and
innovation
 What Is Management?

The process of getting things done effectively and efficiently, with and through people.
• Effectiveness: Doing the right things
• Efficiency: Doing things right
 Who are Managers?

A MANAGER;
 Directly supports, activates, motivates and is
responsible for the work of others
 Managers help the people whose tasks represent the
real work of the organization

‫ﻣﯿﻦا ﻟﻤﺪﻳﺮ‬
‫ھﻨﺎ؟؟‬
 Who are Managers? Daft

 Managers are the executive function of the organization

 Building and coordinating and entire system
 Create systems and conditions that enable others to
perform those tasks
 Create the right systems and environment, managers
ensure that the department or organization will survive
and thrive
 Recognize the key role of people
 How to be an effective
manager?
 Effective managers
successfully help
others achieve both
high
performance and
satisfaction in their work

 Performance +
Satisfaction→ Quality
of Work Life (QWL)
Management levels in a typical business
and non-profit organizations
Functions of Management
Mintzberg’s Managerial Roles Approach
 • LO 4

Managerial Role - Interpersonal Roles

Figurehead role
• Managers perform ceremonial duties

• Leader role
• Managers motivate and encourage workers to accomplish organizational objectives

• Liaison role
• Managers deal with people outside their units

Williams, MGMT: Principles of Management, 11th Edition. © 2019 Cengage. All Rights Reserved. May not be scanned, copied or
duplicated, or posted to a publicly accessible website, in whole or in part.
 • LO 4

Managerial Role - Informational Roles

Monitor role
• Managers scan their environment for information, contact others for information, and
receive unsolicited information
• Disseminator role
• Managers share collected information with their subordinates and others in the
company

• Spokesperson role
• Managers share information with people outside their departments or companies

Williams, MGMT: Principles of Management, 11th Edition. © 2019 Cengage. All Rights Reserved. May not be scanned, copied or
duplicated, or posted to a publicly accessible website, in whole or in part.
 • LO 4

Managerial Role - Decisional Roles

Entrepreneur role
• Managers adapt themselves, their subordinates, and their units to change

• Disturbance handler role

• Managers respond to pressures and problems that demand immediate attention and
action

• Resource allocator role

• Managers decide who gets what resources and in what amounts

• Negotiator role
• Managers negotiate schedules, projects, resources, goals, outcomes, and employee
raises

Williams, MGMT: Principles of Management, 11th Edition. © 2019 Cengage. All Rights Reserved. May not be scanned, copied or
duplicated, or posted to a publicly accessible website, in whole or in part.
 Summary of Manager Roles: Mintzberg’s 10
19 Managerial Roles
 Managerial Skills
Technical skills: Specialized procedures, techniques, and knowledge required to get the job done
Essential for team leaders and lower-level managers

Human skills: Ability to work well with others

• Essential at all levels of management

Conceptual skills
Ability to:
See the organization as a whole
Understand how the different parts affect each other
Recognize how the company fits into or is affected by its external environment

Motivation to manage
• Assessment of how enthusiastic employees are about managing the work of others
Katz’s essential managerial skils—
technical, human, and conceptual.
 • LO 5

Management Skills

Williams, MGMT: Principles of Management, 11th Edition. © 2019 Cengage. All Rights Reserved. May not be scanned, copied or
duplicated, or posted to a publicly accessible website, in whole or in part.
1. Insensitive to others: abrasive, intimidating,
bullying style
2. Cold or arrogant Top Ten Mistakes Managers Make
3. Betrays trust
4. Overly ambitious: thinking of next job,
playing politics
5. Specific performance problems with the
business
6. Over managing: unable to delegate or build
a team
7. Unable to staff effectively
8. Unable to think strategically
9. Unable to adapt to boss with different style
10.Overdependent on advocate or mentor
What are the challenges of working today?

Talent
Careers

Diversity Technology

Ethics Globalization
Organizations as open systems
interact with their environment
The Transition to a New Workplace

Today’s best managers give up their

command- and-control mind-set to focus
on coaching and providing guidance ,
creating organizations that are fast,
flexible, innovative, and relationship-
oriented.
 Measuring Organizational Performance
30

Productivity Performance Performance

effectiveness efficiency

• An overall • An output
measure of the • An input measure
measure of task of the resource
quantity and
or goal costs associated
quality of work
accomplishmentt with goal
performance
with resource accomplishment
utilization taken
into account
Productivity and the dimensions of
organizational performance
For use with Cole/Kelly, Management Theory and Practice, 9th edition 9781473769724, ©Cengage 2020
Prepare a summary on the history of management
 Define the pros & cons of classical approach, human resource
approach & the modern approach