organizations - iesliesl.yolasite.com/resources/iesl organizations.pdf · 2 basic concepts...

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1 Eng. Ranil Sugathadasa BSc.Eng(Hons),MSc.Eng(Moratuwa),MIE(SL),MILT(UK), CEng, MBA(Colombo),PMP (USA) Management Consultant/Motivational Trainer/ Executive Coach/Chartered Engineer Senior Lecturer, Faculty of Engineering, University of Moratuwa Founder: TheMotivator www.themotivator.lk Phone: 0777 224038 Email: [email protected] Organizations

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Eng. Ranil SugathadasaBSc.Eng(Hons),MSc.Eng(Moratuwa),MIE(SL),MILT(UK), CEng, MBA(Colombo),PMP (USA) Management Consultant/Motivational Trainer/ Executive Coach/Chartered Engineer Senior Lecturer, Faculty of Engineering, University of MoratuwaFounder: TheMotivatorwww.themotivator.lkPhone: 0777 224038Email: [email protected]

Organizations

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Basic Concepts

Organizing- The deployment of organizationalresources to achieve strategic goals.

Organization Structure- The framework inwhich organization defines how tasks aredivided, resources are used and departmentsare coordinated.

Organization Chart- The visual representationof an organization’s structure.

Work specialization- The degree to whichorganizational tasks are sub divided intoindividual jobs; also called division of labour

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Basic Concepts ( Cont’)

Chain of command- An unbroken line ofauthority that links all individuals in theorganization and specifies who reportsto whom.

Authority- The formal and legitimateright of a manager to make decisions,issue orders, and allocated resources toachieve organizationally desiredoutcomes.

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Basic Concepts ( Cont’)

Responsibility- The duty to perform the task oractivity an employee has been assigned.

Accountability- The fact that the people withauthority and responsibility are subject toreporting and justifying task outcomes to thoseabove them in the chain of command.

Delegation- The process managers use totransfer authority and responsibility to positionbelow them in the hierarchy

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Basic Concepts ( Cont’)

Line authority- A form of authority in whichindividuals in management positions have theformal power to direct and control theimmediate subordinates.

Staff authority- A form of authority granted tostaff specialists in their area of expertise.

Span of Management- The number ofemployees reporting to supervisor; also calledspan of control.

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Basic Concepts ( Cont’)

Tall structure- A management structurecharacterized by an overall narrow span ofmanagement and a relatively large number ofhierarchical levels.

Flat structure- A management structurecharacterized by an overall broad span ofcontrol and relatively few hierarchical levels.

Centralization- The location of decisionauthority near top organizational level.

Decentralization- The location of decisionauthority near lower organizational levels

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Basic Concepts ( Cont’)

Formalization- The written documentation usedto direct and control employees.

Departmentalization- The basis on whichindividuals are grouped into departments anddepartments into the total organization.

Functional Structure- The grouping of positionsinto departments based on similar skills,expertise, and resource used

Divisional Structure- An organizational structurein which departments are grouped based onsimilar organizational outputs.

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Basic Concepts ( Cont’)

Matrix approach- An organization structure thatutilizes functional and divisional chains ofcommand simultaneously in the same part.

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Basic Concepts ( Cont’)

Job Design- The application of motivationaltheories to the structure of work for improvingproductivity and satisfaction

Job Simplification- A job design whose purposeis to improve task efficiency by reducing thenumber of tasks a single person must do

Job Rotation-A job design that systematicallymoves employees from one job to another toprovide them with variety and stimulation

Job Enlargement- A job design that combines aseries of tasks into one new, broader job togive employees variety and challenge

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Basic Concepts ( Cont’)

Job Enlargement- A job design that combines aseries of tasks into one new, broader job togive employees variety and challenge

Job Enrichment- A job design that incorporatesachievement, recognition, and other high levelmotivators into the work

Empowerment- The delegation of power orauthority to subordinate

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Basic Concepts ( Cont’)

Team- A unit of two or more people whointeract and coordinate their work toaccomplish a specific goal

Formal Team- a team created by theorganization as part of the formalorganizational structure

Vertical Team- A formal team composed of amanager and his or her subordinates in theorganization’s formal chain of command

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Basic Concepts ( Cont’)

Horizontal Team- A formal team composed ofemployees from about the same hierarchicallevel but from different areas of expertise

Committee- A long lasting, sometimes,permanent team in the organization structurecreated to deal with tasks that recur regularly

A special Purpose Team- A team createdoutside the formal organization to undertake aproject of special importance or creativity

A Problem Solving Team-

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Basic Concepts

Goals- A desired future state that theorganization attempts to realize.

Plan- A blueprint specifying the resourceallocations, schedules, and other actionsnecessary for attaining goals.

Planning- The act of determining theorganization’s goals and the means ofachieving them.

Mission- the organization’s reason for existence

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Basic Concepts (Cont’)

Mission Statement- A broadly stated definition of theorganization’s basic business scope and operations thatdistinguishes it from similar type of organizations.

Strategic Plan- Broad statements of where theorganization wants to be the future; pertain to theorganization as a whole rather than to specific divisionsor departments.

Tactical goals- Goals that defines the outcomes thatmajor divisions and departments must achieve in orderfor organization to reach its overall goals.

Tactical plans- plans designed to help execute majorstrategic plans and to accomplish a specific part of thecompany’s strategy.

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Basic Concepts (Cont’)

Operational Goals- specific measurable results expectedfrom departments, work groups, and individuals withinthe organization

Operational Plans- Plans developed at the organization’slower levels that specify action steps towards achievingoperational goals and that support tactical planningactivities.

Management by objectives- A method of managementwhereby managers and employees define goals for everydepartment, project and person and use them to monitorsubsequent performance.

Contingency Plan-Plans that define company response tospecific situation, such as emergencies, setbacks, orunexpected condition

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Basic Concepts (Cont’)

Strategic Management- the set of decisions and actionsused to formulate and implement strategies that willprovide a competitively superior fit between theorganization and its environment so as to achieveorganizational goals.

Strategy- The plan of action that prescribes resourceallocation and other activities for dealing with theenvironment and helping the organization attain goals.

Core competence- A business activity that anorganization does particularly well in comparison tocompetitors.

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Basic Concepts (Cont’)

Corporate level strategy- The level of strategy concernedwith the question” What business are we in ?” pertainsto the organization as a whole and the combination ofbusiness units and product lines that make it up

Business level Strategy- The level of strategy concernedwith the question “ how do we compete ?” Pertains toeach business unit or product line within the organization

Functional Level Strategy- The level of strategyconcerned with the question” How do we support thebusiness level strategy ?” Pertains to all of theorganizations major departments

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Basic Concepts (Cont’)

Strategy formulation-The stage of strategic managementthat involves the planning and decision making that leadto the establishment of the organization’s goals and of aspecific strategic plan.

Strategy Implementation- The stage of strategicmanagement that involves the sue of managerial andorganizational tools to direct resources toward achievingstrategic outcomes.

Situation Analysis- Analysis of the strengths,weaknesses, opportunities and the threats (SWOT) thataffect organizational performance.

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Principles of Leadership

Leadership is an art

Vision, courage and commitment

Know yourself and your team

Protect your team

Treat each person as an individual

Communicate effectively

Emphasize long-term productivity

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Leadership Vs Management Skills

LeadershipManagement

- Communication - Motivation- Conflict resolution & negotiation- Team building - Change Management

Plan, organize, execute, monitor and control

SOFT HARD

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Leadership Styles

High Directiveand

High SupportiveBehavior

Low Directiveand

Low SupportiveBehavior

Low DirectiveandHigh SupportiveBehavior

High DirectiveandLow SupportiveBehavior

S1Directing

S4Delegating

S3 Supporting

S2Coaching

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Communication

Communication Planning- Determine the information and communication needs of the project stakeholders.

Information Distribution- Making needed information available to project stakeholders in a timely manner.

Performance Reporting- Collecting and distributing performance information. This includes status reporting, progress measurements, and forecasting.

Manage Stakeholders- Managing communication to satisfy the requirements of and resolve issues with project stakeholders.

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Motivation- Maslow Hierarchy

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Motivation- Theory X Theory Y

In the 1960s, Douglas McGregor proposed two theoriesrelated to employee motivation and management. Histheories divided employees into two categories.Theory X employees avoid work and dislikeresponsibility. In order to motivate them, employersneed to enforce rules and implement punishments.Theory Y employees enjoy putting forth effort atwork when they have control in the workplace.Employers must develop opportunities for employeesto take on responsibility and show creativity as a wayof motivating Theory Y employees. A third theory,Theory Z, was developed by Dr. William Ouchi. Itencourages group work and social interaction tomotivate employees in the workplace.

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Motivation- Herzbergs's two factor theory

Motivators; (e.g. challenging work, recognition, responsibility) which give positive satisfaction, and

Hygiene factors; (e.g. status, job security, salaryand fringe benefits) that do not motivate if present, but, if absent, result in de motivation.

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Conflict Management

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Traditional View of Conflict

The belief that all conflict is harmful and must beavoided.

The traditional view was consistent with the attitudesthat prevailed about group behavior in the 1930s and1940s.

The negative consequences from conflict can bedevastating. The most obvious are increasedturnover, decreased employee satisfaction,inefficiencies between work units, sabotage, laborgrievances and strikes, and physical aggression.

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Traditional View of Conflict

(cont’d)

Conflict was seen as a dysfunctional outcome resultingfrom poor communication, a lack of openness andtrust between people, and the failure of managers tobe responsive to the needs and aspirations of theiremployees.

The view that all conflict is bad certainly offers asimple approach to look at the behavior of people whocreate conflict.

Since all conflict is to be avoided, we need merelydirect our attention to causes of conflict and correctthese mal- functioning in order to improve group andorganizational performance.

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Human Relations View of

Conflict

The belief that conflict is natural and inevitableoutcome in any group.

This theory advocated acceptance of conflict as it cannot be eliminated, and there are even times whenconflict may benefit a group’s performance.

Human relations view dominated conflict theory fromthe late 1940s through the mid 1970s.

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Interactionist View of Conflict

The belief that conflict is not only a positive force in a groupbut that it is absolutely necessary for a group to performeffectively.

This approach encourages conflict on the grounds that aharmonious, peaceful, tranquil, and cooperative group isprone to becoming static, apathetic, and non responsive toneeds for change and innovation.

It encourages group leaders to maintain an ongoingminimum level of conflict- enough to keep the group viable,self critical and creative.

Whether conflict is good or bad depends on types ofconflict.

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Stages of Team Building

Forming

Storming

Norming

Performing

Adjourning

Guarded Confront Resolve Trust Regret

Project Life Cycle

Co

nfl

ict

Team

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Functional vs Dysfunctional

Conflict

Functional Conflict- Conflict that supports the goals of the group and improves its performance

Dysfunctional Conflict- Conflict that hinders group performance

Task Conflict- Conflicts over content and goals of the work

Relationship conflict- Conflict based on interpersonal relationships

Process Conflict- Conflict over how work gets done

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The Conflict Process (cont’d)

Forcing(Dictating)

Collaborating(Consensus)

Avoiding(Withdrawing)

Accommodating(Smoothing)

Concern for OthersLow High

Co

nce

rn f

or

On

ese

lfLo

wH

igh

Compromising(Bargaining)

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Introduction to Change Management

In today’s tough competitive environment, the only thinga person in the world of business can be certain of isuncertainty.

Change denotes the transition that occurs between onestate to another.

Change management is a systematic approach to dealingwith change, both from the perspective of an organizationand on the individual level.

For an organization, change management means definingand implementing procedures/technologies to deal withchanges in the business.

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Introduction to Change Management (Cont’)

The change process could also be consideredas problem solving situation.Managing the changes in an organizationrequires a broad set of skills like political skills,analytical skills, people skills, system skills andbusiness skills.Change management allows the organizationto give a reactive or a proactive response tothe changes that happen internally andexternally.

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Why do People resist Change ?

They believe change is unnecessary or will make thesituation worse.They fear the change will mean personal loss- of security,money.They have no input into the decision.The change is surprise.They are not confident that the change will succeed.They feel manipulated because the changes were kept secretduring the planning stage.They subscribe to the belief “ if it is not broken, don’t fix it”.They believe that the organization lacks the necessaryresources to implement the change.

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When do People support Change ?

They expect that it will result in some personalgainThey expect a new challenge as a resultThey believe that the change makes sense and isthe right thing to do.They were given opportunity to provide inputs intothe changeThey respect the person who is championing thechangeThey believe it is the right time for the change

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Effective Way to get People involved

Determine who must be involved in planning the changeand include them in the decision making process.

Ensure that people from all levels of the organization areinvolved in the planning and change process.

Consult with the employees.

Seek inputs from people at all levels to establish realistictime frames.

When possible, run a test program with a selected workunit.

Publicly recognize employees.

Design a mechanism that provides on going feedbackfrom employees.

Belbin’s Eight Management Team Roles

ShaperAnxious

DominantExtrovert

FinisherAnxiousIntrovert

ResourceInvestigator

StableDominantExtrovert

Team WorkerStable

Low dominanceExtrovert

CoordinatorStable

DominantExtrovert

MonitorEvaluator

SmartStable

Introvert

ImplementerStable

Controlled

PlantSmart

DominantIntrovert

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Belbin’s Team Types

Implementer- Well organized and predictable. Takes basic idea andmakes them work in practice.Shaper-Lots of energy and action. Challenges others to moveforwardCompleter/Finisher-Reliably sees things through to the end.Ensures everything works well. Does not trust othersPlant-Solves difficult problems with original and creative ideasMonitor/ Evaluator- Sees the big picture. Thinks carefully andaccurately about thingsSpecialist- has expert knowledge/skillsCoordinator-Respected leader who helps everyone focus on theirtasksTeam Worker-Cares for individuals and the team. Good listenerResource Investigator- Explores new ideas and possibilities withenergy. Can be too optimistic and lose the energy after the initialmotivation