Introduction to Management

Artifacts: the observable symbols and signs of an organization’s culture (greeting modalities, office layouts, etc.)

4 Categories:

1. organizational stories and legends

2. Rituals and ceremonies (ritual: programmed, eg. greeting every morning, ceremonies: planned, eg. farawell aperos)

3. Language

4. Physical structures and symbols

1. Control system (social control)

2. Social Glue

3. Sense making

• Environment
  • Stable environment
    • Focus on efficiency
    • Favours centralized, taller structures
  • Turbulent environment
    • Focus on flexibility
    • Favours decentralized, flatter structures
• Strategy
  • Cost leadership strategy
    • Favours efficiency
    • Favours a centralized, taller organizational structure
  • Differentiation strategy
    • Favours flexibility
    • Favours a decentralized, flatter organizational structure

Attraction-selection-attrition (ASA) theory states that organizations have a natural ten-dency to attract, select, and retain people with values and personality characteristics that are consistent with the organization’s character, resulting in a more homogeneous organization and a stronger culture. 

Organizational socialization is the process by which individuals learn the values, expected behaviours, and social knowledge necessary to assume their roles in the organization. It is a process of both learning about the work context and adjusting to new work roles, team norms, and behaviours. 

Employees typically pass through three socialization stages: preemployment, encounter, and role management. 

• Attracting, selecting and socializing employees
• Actions of founders and leaders
• Aligning artifacts (the things of the culture you can see)
• Introducing culturally consistent rewards

• Recruitment and selection
• Training and development
• Performance appraisal and feedback
• Pay and benefits
• Labour relations

• Be specific and focus on behaviors/outcomes that are correctable and within a worker’s ability to improve
• Approach performance appraisal as an exercise in problem solving and solution finding, not criticizing.
• Express confidence in a subordinate's ability to improve
• Provide performance feedback both formally and informally
• PRaise instances of high performance and areas of a job in which a worker excels
• Avoid personal criticism and treat subordinates with respect
• Agree to timetable for performance improvements

1. Shape the Future 
2. Make Things Happen 
3. Engage Today´s Talent 
4. Build the Next Generation 
5. Invest in Yourself 

Method of evaluating a firm’s performance using performance measures from four key perspectives.

1. Customer Perspective: how well a firm satisfies customers expectations (time, quality, performance and service, price). How do customers see us?

2.  Internal Business Perspective: how well internal processes, decisions and actions are contributing to customer satisfaction. What must we excel at?

3.  Innovation and Learning Perspective: How well does the firm perform in changing and adapting products and services regarding the changing environment. (Human capital, information capital, organisation capital and culture) Can we continue to improve and create value?

4. Financial Perspective: measures the performance (profitability, growth, shareholder value) regarding strategy implementation and execution. How do we look to shareholders?

Balanced scorecard is a long-term and evolutionary process, not a quick fix.

• Lack of a clear strategy
• Limited or ineffective executive sponsorship
• Too much emphasis on financial measures rather than nonfinancial measures
• Poor data on actual performance
• Inappropriate links of scorecard measures to compensation
• Inconsistent or inappropriate terminology

Performance and effectiveness

• Organization level:
  • Profit, sales, growth, resource utilization, flexibility/adaptability
• Group level
  • innovation, efficiency, cohesion
• Individual level
  • Satisfaction, productivity, learning, quality of work life, ethical behaviour

Specific (Who? What?)

Measurable (How much/many?)

Achievable (How?)

Relevant (Why?)

Time-bound (When?)

Obstructionist approach

Defenisve approach

Accomodative approach

Proactive approach

1. Utiliarian Rule: produce the greatest good (or least harm) for the greatest number of people.
2. Moral rights rule: An ethical decision should maintain and protect the fundamental rights and privileges of people (e.g. Freedom, life, … )
3. Justice Rule: An ethical decision should distribute benefits and harm among people and groups in a fair, equitable and impartial manner (eg. similar payment for similar jobs)
4. Practical rule: Answering yes to three questions:
   1. Decision within the accepted values or standards of my business activity?
   2. Am I willing to see the decision communicated to the people / groups affected?
   3. Would the people with whom I have a significant personal relationship (family, friends) approve the decision?

Market hybrid (Customers = Beneficiaries, only business activites, eg. m-pesa)

Blending hybrid (Customers = Beneficiaries, business and social activites, eg. Grameen Bank)

Bridging hybrid (Customers ≠ Beneficiaries, only business activities, eg. AddioPizzo Travel)

Coupling hybrid (Customers ≠ Beneficiaries, business and social activities, eg. Blindekuh)

Attraction - Selection - Attrition

A theory holding that: (1) individuals are attracted to organizations whose members are similar to themselves in terms of personality, values, interests, and other attributes; (2) organizations are more likely to select those who possess knowledge, skills, and abilities similar to the ones their existing members possess; and (3) over time, those who do not fit in well are more likely to leave. Owing to these three factors, the personal characteristics of those who work for an organization are likely to become more similar over time, leading to the consolidation of organizational culture.

• inbound logistics
• operations
• outboundlogistics
• marketing and sales
• services 

• firm infrastructure
• human resource management
• technology development
• procurement 

1. Political/Legal
2. Economic
3. Socio-cultural
4. Technological
5. Demographics
6. Global

Anticipatory
Performance: high and increasing
Readiness for change: Low
Capability: High
Commitment: Low

Reactive
Performance: slightly decreasing
Readiness for change: mixed
Capability: mixed
Commitment: mixed

Crisis
Performance: decreasing, low
Readiness for change: High
Capability: Low
Commitment: High

Predictability: give people as much information as possible about what will happen and when

Understanding: explain why the changes you are implementing are necessary - again, again and again

Compassion: express empathy, put yourself in other person's place, be sorrow for painful actions

Decision making: top-down, centralized, strict goals and control

Cost Cutting / Layoffs: consciously taking longer periods for layoff, reduction in sales force only in crisis regions, only small reduction in R&D, continuation of cultural training activities (culture not only in good times)

Supporting activities: all employees at headquarter gave up 5% of salary, Hilti family doesn't take dividend despite Hilti is making profit

The creation, maintenance, and implementation of competitive advantages

Consists of a series of skillful maneuvers

Involves critical, sometimes irreversible decisions