FNDB022– Foundation Management Week 6 – Organisational Culture Learning Objective 1: Explain how organisational cultures are created Learning Objective 2: Explain how organisational cultures can help companies be successful Learning Objective 1: Internal Environment Why is it important to study internal environment? Define Organisational Culture Examples 1 Short Answer The organisational culture is created by 1. 2. 3. Give examples of well known organisational heroes 2 Learning Objective 2: Explain how organisational cultures can help companies be successful Identify the four characteristics of successful organisational cultures Short Answer Define A_________ Define I___________ Define M____________ Define C_______________ These four characteristics can help companies achieve 1. 2. 3. 4. 5. 3 Identify three approaches that can be used to change organisational culture Short Answer The three ways of changing organisational culture include 1. 2. 3. 1. When Samsonite (luggage manufactures) purchased American Tourister, one of the first things the new management did was to eliminate the gorilla (which had appeared in all American Tourister ads for years and which represented the quality construction of American Tourister luggage). For American Tourister employees, the gorilla had been a symbol of quality and commitment. The executive order to remove the gorilla posters from the walls of offices and factories was one of the means Samsonite used to change the organisational culture at American Tourister. The gorilla posters were an example of: a. visible artefacts b. iconic representations c. organisational metaphors d. organisational allegories e. imbued technology 2. Which of the following statements regarding corporate cultures is true? a. Corporate cultures are dynamic creations that respond positively to change. b. Corporate cultures are unaffected by changes in benefits, office layouts or work relationships. c. Corporate cultures are very difficult to change. d. Any manager who wants to modify a corporate culture must follow the cultural change plan, which begins with employee input and ends with behavioural addition and/or substitution. e. Corporate culture change is significantly easier with behavioural addition than with behavioural subtraction. 4 FNDB022– Foundation Management Week 7 – Ethics and social responsibility Learning Objective 1: Identify common kinds of workplace deviance Learning Objective 2: Describe what influences ethical decision making Learning Objective 3: Explain what practical steps managers can take to improve ethical decision making Learning Objective 4: Explain to whom and why organisations are socially responsible Learning Objective 5: Explain how organisations can choose to respond to societal demands for social responsibility Learning Objective 1: Ethical Behaviour Why is it important to study ethics? Define Ethical Behaviour Examples 1 Learning Objective 1: Identify common kinds of workplace deviance Give examples of workplace deviance 1. 2 3. 4. Learning Objective 2: Describe what influences ethical decision making 1. _____________________ describe the degree of concern people have about an ethical issue. 2. When addressing issues of high ________________, managers are more aware of the impact that their decisions have on others, they are more likely to view the decision as an ethical decision and they are more likely to worry about doing the right thing. 3. Due to _______________________, the intentional pollution of a metropolitan water supply would have greater ethical intensity than an incident of insider trading in which a few participants netted less than $10 000. 4. General Motors Holden had announced the company will stop making vehicles by the end of 2017 ending 65 years of building cars in Australia. The decision means 2,900 people had lost their jobs 1,600 from the manufacturing plant in South Australia and 1,300 in Victoria. Due to ______________________, this decision produced strong ethical intensity. 5. According to Kohlberg’s model of moral development, people at the _____________ level make decisions that are based on selfish reasons. 6. According to Kohlberg’s model of moral development, people at the _____________ level make decisions that conform to societal expectations. 7. According to Kohlberg’s model of moral development, people at the ______________ level always use internalised ethical principles to solve ethical dilemmas. 2 1. Doug has a low-paying job for a telecommunications company. Every day when he goes home from work, Doug puts a headset, a stapler or something similar in his lunch box and takes it with him. Doug sees nothing wrong with his behaviour since he feels inadequately paid. In terms of the stages of moral development, Doug is operating at which level? a. Conventional b. Legally mandated c. Pre-conventional d. Post-conventional e. Internalisation Learning Objective 3: Explain what practical steps managers can take to improve ethical decision making List the five steps managers can take to encourage more ethical decision making in their organisation 1. 2. 3. 4. 5. 3 Learning Objective 4: Explain to whom and why organisations are socially responsible Define Stakeholders What are the two types of stakeholder groups? Give examples P S Describe the four areas of corporate social responsibility that are most relevant to stakeholders 1. 2. 3. 4. 4 Learning Objective 5: Explain how organisations can choose to respond to societal demands for social responsibility What is social responsiveness? Identify the four strategies that can be used to respond to social responsibility problems. 1. 2. 3. 4. 1. IBM has a long-standing commitment to education and workforce development, which involves applying their talent and technology to innovative educational solutions. IBM is using a(n) _______ strategy to show its social responsibility. a. proactive b. accommodative c. predictive d. defensive e. adaptive 2. When the media in India informed the public that Coca-Cola products bottled in India contained a high level of certain cancer-causing pesticides, Coke responded by saying that all of India’s water was contaminated and that it was not doing anything wrong by using the local water supply. In this situation, Coke used a ______ strategy to respond to its social responsibility problems. a. reactive b. prospective c. defensive d. accommodative e. proactive 5 FNDB022– Foundation Management Week 8 - Designing Adaptive Organizations Learning Objective 1: Describe the departmentalisation approach to organisational structure Learning Objective 2: Explain organisational authority Learning Objective 3: Discuss the different methods for job design Learning Objective 4: Explain the methods to redesign internal and external organisational processes Learning Objective 1: Define organizational structure. Terms Definitions Organisational Structure Organisational Process Departmentalisation The five approaches to departmentalisation are f___________, p____________, c___________, g_____________ and m____________. 1 1. Hallmark has four departments: flowers and gifts, cards and e-cards, hallmark collectibles, and photo albums and scrapbooks. Hallmark uses ________ departmentalisation. a. matrix b. product c. customer d. geographic e. functional 2. Large accounting agencies typically have separate departments that deal with households, businesses and governments. To better serve the needs of their clients, many of these accounting agencies use ________ departmentalisation. a. matrix b. product c. customer d. geographic e. functional 3. There is one common disadvantage associated with geographic, product and customer departmentalisation. What is it? Explain how the functional and matrix forms avoid this disadvantage. _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ Learning Objective 2: Explain the characteristics of organizational authority What is Authority? __________________________________________________________________________________ __________________________________________________________________________________ 2 Terms related to Authority Definition Chain of Command The ____________ line of authority that clarifies who reports to whom in the organisation. Unity of Command Workers should report to just __________ boss. Line Authority The right to _____________ immediate subordinates in the chain of command. Staff Authority the right to ______________ but not __________ others who are not subordinates in the chain of command Centralisation of Authority ___________ authority is held by _________ management Decentralisation ___________ decisions are made by _________ management Standardisation Solving problems by applying _______, _________ and ____________. Degree of Organisational Centralisation To achieve better organisational performance, the key question is no longer whether companies should decentralise, but where they should decentralise. One rule of thumb is to stay _________ when standardisation is important and to ___________ when standardisation is unimportant. Learning Objective 3: Explain the characteristics of Job design particularly: Job Specialisation, Job Enlargement, and Job Enrichment. Terms Job Specialisation Definition Job Rotation Job Enlargement Job Enrichment 3 Learning Objective 4: Identify the differences between mechanistic and organic organisational designs. Look at the following organizations Organisation A This organization is a manufacturing firm. Managers are expected to document fully all decisions and ‘good managers’ are those who can provide detailed data to support their recommendations. Creative decisions that incur significant change or risk are not encouraged. Because managers of failed projects are openly criticized and penalized, managers try not to implement ideas that deviate much from the status quo. One lower level manager quoted an often used phrase in the company: ‘If it ain’t broke, don’t fix it.’ Employees are required to follow extensive rules and regulations in this firm. Managers supervise employees closely to ensure that there are no deviations. Management is concerned with high productivity, regardless of the impact on employee morale or turnover. Work activities are designed around individuals. There are distinct departments and lines of authority, and employees are expected to minimize formal contact with other employees outside their functional area or line of command. Performance evaluations and rewards emphasise individual effort, although seniority tends to be the primary factor in the determination of pay. Organisation B This organization is also a manufacturing firm. Here, however, management encourages and rewards risk taking and change. Decisions based on intuition are valued as much as those that are well rationalized. Management prides itself on its history of experimenting with new technologies and its success in regularly introducing innovative products. Managers or employees who have a good idea are encouraged to ‘run with it,’ and failures are treated as ‘learning experiences. ’ The company prides itself on being market driven and rapidly responsive to the changing needs of its customers. There are few rules and regulations for employees to follow, and supervision is loose because management believes that this comes through treating its people right. The company is proud of its reputation as being a good place to work. Job activities are designed around work teams, and team members are encouraged to interact with people across functions and authority levels. Employees talk positively about the competition between teams. Individuals and teams have goals, and bonuses are based on achievement of outcomes. Employees are given considerable autonomy in choosing the means by which goals are obtained. 4 Which organization in the case above is Organic and which is Mechanistic. Explain why you have identified them as being either organic or mechanistic by applying as many of the factors as possible – you may not be able to apply all of them. Terms Organisation A Organisation B There are distinct departments and Team members are encouraged to lines of authority. interact with others across functions Organic vs. Mechanistic Chain of Command Unity of Command Line Authority and authority levels. Centralisation of Who makes the decisions? Who makes the decisions? Who makes the decisions? Who makes the decisions? Which function is most important to Which function is most important to this type of organization? this type of organization? Authority Decentralisation of Authority Standardisation Function 5 Learning Objective 5: List and describe two approaches to redesign internal processes Terms Reengineering Definition changes an organisation’s orientation from ____________ to _____________ through f________ r__________ and r_________ r_________ of business processes Empowerment taking ____________ and ____________ from managers and giving it to ____________. Empowered ___________ develop feelings of competence and self-determination and believe their work to have meaning and impact 6 FNDB022– Foundation Management Week 9– Motivation and Goal Setting Learning Objective 1: Explain the basics of motivation Learning Objective 2: Use equity theory to explain how employees’ perceptions of fairness affect motivation Learning Objective 3: Use expectancy theory to describe how workers’ expectations about rewards influence motivation Learning Objective 4: Explain how reinforcement theory works and how it can be used to motivate Learning Objective 5: Describe the components of goal-setting theory and how managers can use them to motivate workers Learning Objective 1: Define Motivation …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… What goals do you have for your study? …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… What “forces” stop you from being motivated (demotivate you)? …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… 1 Briefly explain the following equation: Job Performance =Motivation x Ability x Situational Constraints. …………………………………………………………………………………………………………… Job Performance …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… Motivation …………………………………………………………………………………………………………… ………………………………………………………………………………………………………… …………………………………………………………………………………………………………… Ability ………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… Situational Constraints …………………………………………………………………………………………………………… ………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… ……………………………………………………………………………………………………… Explain and interpret Maslow’s Hierarchy of Needs What are needs? …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… How do needs motivate workers? …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… 2 Maslow’s Needs classification People have _____________, so they perceive reality accurately, have a sense of awe, wonder and gratitude about life. They are not selfcentered but rather problem-centered and focus on how to improve. How might an organisation fulfil the need? As individuals, we naturally wish to excel or be exceptional, to be noticed for our unique talents and capabilities. Once one has some measure of _____________________, one gains the psychological freedom to be creative and to grow as well as to be more generous to others Lack of interactions, human relationships and the sense of __________________ may result in depression or loneliness. An abundance of love and community often sustain people through difficult times, the healthiest, happiest people tend to be more involved in their communities. The ___________ needs occurs, when one loses one’s job, family, home, life savings, health insurance, etc. It makes one feel secure and protected. The __________________Needs such as breathing, food, drink, sleep, are largely (and obviously) biological and physical requirements 1. According to Alderfer's ERG theory, the lowest-order need is: a. existence b. relatedness c. physiological needs d. ego-related e. empathy 2. McClellend's learned needs theory identifies three needs. They are the needs for: a. achievement, relatedness and growth b. existence, relatedness and growth c. affiliation, growth and power d. power, self-actualisation and growth e. power, achievement and affiliation 3. Which of the following statements about needs is true? a. In all situations, higher-order needs can be used to motivate. b. The importance of lower-order needs is identified by all needs theories. c. The relative importance of the various needs may change over time in a predictable pattern. d. Higher-order needs are concerned with survival and security. e. Higher-order needs will generally not motivate people as long as lower-order needs remain unsatisfied. 3 Explain extrinsic and intrinsic rewards 1. What is an extrinsic reward? Give examples. …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… 2. What is an intrinsic reward? Give examples. …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… 3. What is the difference between extrinsic and intrinsic rewards? …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… Learning Objective 2: Explain Equity Theory General description/diagram of Equity Theory: Although the advent of professional women's sporting leagues has led to dramatic increases in opportunities for women in sports at high school, university and professional levels, significant discrepancies still exist between men's and women's sport. For example, women receive less media coverage, promotion and institutional support. According to ____________________, the motivation for women athletes to perform at the top of their ability is less than that for men. 4 Use equity theory to explain how employees’ perceptions of fairness affect motivation. The basic components of equity theory are , an internal comparison in which employees compare their and . After to their , they then make an external comparison in which they compare their O/I ratio with the O/I ratio of a , a person who works in a similar job or is otherwise similar. When their O/I ratio is equal to the referent’s O/I ratio, employees that they are being treated fairly. But, when their O/I ratio is different from their referent’s O/I ratio, they perceive that they have been treated , under- and over- or unfairly. There are two kinds of . Under- , which occurs when a referent’s O/I ratio is better than the employee’s O/I ratio, leads to anger or frustration. Over, which occurs when a referent’s O/I ratio is worse than the employee’s O/I ratio, can lead to guilt, but only when the level of over-reward is extreme. Give a real world example to explain how an employee could feel inequity and how they might resolve this feeling …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… Learning Objective 3: Explain Expectancy Theory General description/diagram of Expectancy Theory: 5 4. According to expectancy theory, ________affect the conscious choices that people make about their motivation. a. equity, value-added and instrumentality b. valence, expectancy and instrumentality c. expectancy, reinforcement and instrumentality d. instrumentality, equity and expectancy e. expectancy, equity and reinforcement 5. According to expectancy theory, in order for people to be highly motivated, _________must be high. a. the value added b. reinforcement usage c. instrumentality d. equity e. referent power 6. On the television series Lost, a group of survivors sincerely believed that if they built a raft, they could float on it out into a shipping lane and be rescued. In terms of expectancy theory, the raft builders had a: a. low degree of instrumentality b. low valence c. potential for over-reward d. high level of expectancy e. high valence Learning Objective 4: Explain Reinforcement Theory 7. Reinforcement theory says behaviour is a function of: a. perception b. environment c. its consequences d. conscious choices e. the situations in which it occurs The ________ kinds of reinforcement contingencies are ___________ reinforcement, __________ reinforcement, ___________ and ______________. Positive reinforcement _____________ behaviour (i.e., _______ its frequency) by following behaviours with _____________ consequences. For example, receiving high grades for mid-semester test or final exam. Negative reinforcement strengthens behaviour by _________ an ___________ consequence when employees perform a __________ behaviour. For example, some of your grading may be tied to your attendance or participation in all unit classes. By contrast, punishment _________ behaviour (i.e., __________ its frequency) by following behaviours with ___________ consequences. For example, the teacher may only ask students who have not performed well in class (e.g. low contribution to group activities) to present their insights to the whole class. Extinction is a reinforcement strategy in which a _________ consequence is no longer allowed to follow a previously reinforced behaviour. By removing the positive consequence, extinction _________ the behaviour, making it less likely to occur. For example, your teacher may offer you feedback or hints for upcoming assessment where you participate in class, however inadequate or uninspired participation may not achieve the same results. Thus, _____________ act to either strengthen or weaken a behaviour over time. 6 Learning Objective 5: Explain Goal Setting Theory What are the components of goal-setting theory? Goal-setting theory states that people will be to the extent to which they accept specific, challenging goals and receive feedback that indicates their progress toward goal . The four components of goal-setting theory are goal goal and performance . Goal , is the extent to which goals are detailed, exact and unambiguous. Goal challenging to accomplish. Goal , goal is the extent to which a goal is hard or is the extent to which people consciously understand and agree to goals. And performance is information about the quality or quantity of past performance that indicates whether progress is being made toward the accomplishment of a . How can managers use goal-setting theory to motivate employees? To motivate using goal-setting theory, managers should assign goals, make sure workers truly , specific performance-related and organisational goals and provide . What are SMART goals? Why are they important in goal setting theory? …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… Can goals be too challenging? What effect might this have on employee motivation? …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… 7 FNDB022 MANAGEMENT WEEK SIX LEARNING OBJECTIVES By the end of this chapter you should be able to: Explain how organisational cultures are created and how they can help companies be successful. INTERNAL ENVIRONMENT  The events and trends inside an GENERAL organisation that affect management, employees and organisational culture.  Affects what people feel and think and how they behave at work. SPECIFIC  Can you think of ways in which the internal environment impacts productivity? INTERNAL ORGANIZATIONAL CULTURE  Organisation culture concerns the values, beliefs and attitudes shared by organisational members.  When employees enjoy the space they work in, it helps to foster a positive organisational culture. SOURCES OF ORGANIZATIONAL CULTURE Company Founder Organizational Stories Organizational Heroes • Imprint beliefs, attitudes and values on the company and is instrumental in creating the culture • organisational Told to make sense of internal events and changes, and to emphasise cultural assumptions, decisions and actions • People celebrated for their qualities and achievements within an organisation SUCCESSFUL ORGANIZATIONAL CULTURES Adaptability Involvement Consistency Clear vision Sales growth Employee satisfaction Return on assets Profits Quality Creating Change CHANGING ORGANIZATIONAL CULTURE Behavioral Addition Behavioral Substitution Changing Visible Artifacts CHANGING ORGANIZATIONAL CULTURE • Behavioral addition: The process of having managers and employees perform a new behavior • For example, staff learn a new set of skills when managing customers. Eg: soft-skills training CHANGING ORGANIZATIONAL CULTURE  Behavioral substitution: Having managers and employees perform a new behavior in place of another behavior.  For example, respectful language towards or about diverse staff members CHANGING ORGANIZATIONAL CULTURE  Change visible artifacts:  The physical aspects of the organization that you can see and touch  Such as the office design and layout, or company dress codes VIDEO LINKS Corporate culture Apple example: https://www.youtube.com/watch?v=EcHpgsTg458 Simon Sinek: how great leaders inspire action: http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action?language=en TIME TO FINISH WORKBOOKS! WEEK 7-ETHICS AND SOCIAL RESPONSIBILITY FNDB022– Foundation Management Week 6 – Organisational Culture Learning Objective 1: Explain how organisational cultures are created Learning Objective 2: Explain how organisational cultures can help companies be successful Learning Objective 1: Internal Environment Why is it important to study internal environment? Define Organisational Culture Examples 1 Short Answer The organisational culture is created by 1. 2. 3. Give examples of well known organisational heroes 2 Learning Objective 2: Explain how organisational cultures can help companies be successful Identify the four characteristics of successful organisational cultures Short Answer Define A_________ Define I___________ Define M____________ Define C_______________ These four characteristics can help companies achieve 1. 2. 3. 4. 5. 3 Identify three approaches that can be used to change organisational culture Short Answer The three ways of changing organisational culture include 1. 2. 3. 1. When Samsonite (luggage manufactures) purchased American Tourister, one of the first things the new management did was to eliminate the gorilla (which had appeared in all American Tourister ads for years and which represented the quality construction of American Tourister luggage). For American Tourister employees, the gorilla had been a symbol of quality and commitment. The executive order to remove the gorilla posters from the walls of offices and factories was one of the means Samsonite used to change the organisational culture at American Tourister. The gorilla posters were an example of: a. visible artefacts b. iconic representations c. organisational metaphors d. organisational allegories e. imbued technology 2. Which of the following statements regarding corporate cultures is true? a. Corporate cultures are dynamic creations that respond positively to change. b. Corporate cultures are unaffected by changes in benefits, office layouts or work relationships. c. Corporate cultures are very difficult to change. d. Any manager who wants to modify a corporate culture must follow the cultural change plan, which begins with employee input and ends with behavioural addition and/or substitution. e. Corporate culture change is significantly easier with behavioural addition than with behavioural subtraction. 4 FNDB022– Foundation Management Week 7 – Ethics and social responsibility Learning Objective 1: Identify common kinds of workplace deviance Learning Objective 2: Describe what influences ethical decision making Learning Objective 3: Explain what practical steps managers can take to improve ethical decision making Learning Objective 4: Explain to whom and why organisations are socially responsible Learning Objective 5: Explain how organisations can choose to respond to societal demands for social responsibility Learning Objective 1: Ethical Behaviour Why is it important to study ethics? Define Ethical Behaviour Examples 1 Learning Objective 1: Identify common kinds of workplace deviance Give examples of workplace deviance 1. 2 3. 4. Learning Objective 2: Describe what influences ethical decision making 1. _____________________ describe the degree of concern people have about an ethical issue. 2. When addressing issues of high ________________, managers are more aware of the impact that their decisions have on others, they are more likely to view the decision as an ethical decision and they are more likely to worry about doing the right thing. 3. Due to _______________________, the intentional pollution of a metropolitan water supply would have greater ethical intensity than an incident of insider trading in which a few participants netted less than $10 000. 4. General Motors Holden had announced the company will stop making vehicles by the end of 2017 ending 65 years of building cars in Australia. The decision means 2,900 people had lost their jobs 1,600 from the manufacturing plant in South Australia and 1,300 in Victoria. Due to ______________________, this decision produced strong ethical intensity. 5. According to Kohlberg’s model of moral development, people at the _____________ level make decisions that are based on selfish reasons. 6. According to Kohlberg’s model of moral development, people at the _____________ level make decisions that conform to societal expectations. 7. According to Kohlberg’s model of moral development, people at the ______________ level always use internalised ethical principles to solve ethical dilemmas. 2 1. Doug has a low-paying job for a telecommunications company. Every day when he goes home from work, Doug puts a headset, a stapler or something similar in his lunch box and takes it with him. Doug sees nothing wrong with his behaviour since he feels inadequately paid. In terms of the stages of moral development, Doug is operating at which level? a. Conventional b. Legally mandated c. Pre-conventional d. Post-conventional e. Internalisation Learning Objective 3: Explain what practical steps managers can take to improve ethical decision making List the five steps managers can take to encourage more ethical decision making in their organisation 1. 2. 3. 4. 5. 3 Learning Objective 4: Explain to whom and why organisations are socially responsible Define Stakeholders What are the two types of stakeholder groups? Give examples P S Describe the four areas of corporate social responsibility that are most relevant to stakeholders 1. 2. 3. 4. 4 Learning Objective 5: Explain how organisations can choose to respond to societal demands for social responsibility What is social responsiveness? Identify the four strategies that can be used to respond to social responsibility problems. 1. 2. 3. 4. 1. IBM has a long-standing commitment to education and workforce development, which involves applying their talent and technology to innovative educational solutions. IBM is using a(n) _______ strategy to show its social responsibility. a. proactive b. accommodative c. predictive d. defensive e. adaptive 2. When the media in India informed the public that Coca-Cola products bottled in India contained a high level of certain cancer-causing pesticides, Coke responded by saying that all of India’s water was contaminated and that it was not doing anything wrong by using the local water supply. In this situation, Coke used a ______ strategy to respond to its social responsibility problems. a. reactive b. prospective c. defensive d. accommodative e. proactive 5 FNDB022– Foundation Management Week 8 - Designing Adaptive Organizations Learning Objective 1: Describe the departmentalisation approach to organisational structure Learning Objective 2: Explain organisational authority Learning Objective 3: Discuss the different methods for job design Learning Objective 4: Explain the methods to redesign internal and external organisational processes Learning Objective 1: Define organizational structure. Terms Definitions Organisational Structure Organisational Process Departmentalisation The five approaches to departmentalisation are f___________, p____________, c___________, g_____________ and m____________. 1 1. Hallmark has four departments: flowers and gifts, cards and e-cards, hallmark collectibles, and photo albums and scrapbooks. Hallmark uses ________ departmentalisation. a. matrix b. product c. customer d. geographic e. functional 2. Large accounting agencies typically have separate departments that deal with households, businesses and governments. To better serve the needs of their clients, many of these accounting agencies use ________ departmentalisation. a. matrix b. product c. customer d. geographic e. functional 3. There is one common disadvantage associated with geographic, product and customer departmentalisation. What is it? Explain how the functional and matrix forms avoid this disadvantage. _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ Learning Objective 2: Explain the characteristics of organizational authority What is Authority? __________________________________________________________________________________ __________________________________________________________________________________ 2 Terms related to Authority Definition Chain of Command The ____________ line of authority that clarifies who reports to whom in the organisation. Unity of Command Workers should report to just __________ boss. Line Authority The right to _____________ immediate subordinates in the chain of command. Staff Authority the right to ______________ but not __________ others who are not subordinates in the chain of command Centralisation of Authority ___________ authority is held by _________ management Decentralisation ___________ decisions are made by _________ management Standardisation Solving problems by applying _______, _________ and ____________. Degree of Organisational Centralisation To achieve better organisational performance, the key question is no longer whether companies should decentralise, but where they should decentralise. One rule of thumb is to stay _________ when standardisation is important and to ___________ when standardisation is unimportant. Learning Objective 3: Explain the characteristics of Job design particularly: Job Specialisation, Job Enlargement, and Job Enrichment. Terms Job Specialisation Definition Job Rotation Job Enlargement Job Enrichment 3 Learning Objective 4: Identify the differences between mechanistic and organic organisational designs. Look at the following organizations Organisation A This organization is a manufacturing firm. Managers are expected to document fully all decisions and ‘good managers’ are those who can provide detailed data to support their recommendations. Creative decisions that incur significant change or risk are not encouraged. Because managers of failed projects are openly criticized and penalized, managers try not to implement ideas that deviate much from the status quo. One lower level manager quoted an often used phrase in the company: ‘If it ain’t broke, don’t fix it.’ Employees are required to follow extensive rules and regulations in this firm. Managers supervise employees closely to ensure that there are no deviations. Management is concerned with high productivity, regardless of the impact on employee morale or turnover. Work activities are designed around individuals. There are distinct departments and lines of authority, and employees are expected to minimize formal contact with other employees outside their functional area or line of command. Performance evaluations and rewards emphasise individual effort, although seniority tends to be the primary factor in the determination of pay. Organisation B This organization is also a manufacturing firm. Here, however, management encourages and rewards risk taking and change. Decisions based on intuition are valued as much as those that are well rationalized. Management prides itself on its history of experimenting with new technologies and its success in regularly introducing innovative products. Managers or employees who have a good idea are encouraged to ‘run with it,’ and failures are treated as ‘learning experiences. ’ The company prides itself on being market driven and rapidly responsive to the changing needs of its customers. There are few rules and regulations for employees to follow, and supervision is loose because management believes that this comes through treating its people right. The company is proud of its reputation as being a good place to work. Job activities are designed around work teams, and team members are encouraged to interact with people across functions and authority levels. Employees talk positively about the competition between teams. Individuals and teams have goals, and bonuses are based on achievement of outcomes. Employees are given considerable autonomy in choosing the means by which goals are obtained. 4 Which organization in the case above is Organic and which is Mechanistic. Explain why you have identified them as being either organic or mechanistic by applying as many of the factors as possible – you may not be able to apply all of them. Terms Organisation A Organisation B There are distinct departments and Team members are encouraged to lines of authority. interact with others across functions Organic vs. Mechanistic Chain of Command Unity of Command Line Authority and authority levels. Centralisation of Who makes the decisions? Who makes the decisions? Who makes the decisions? Who makes the decisions? Which function is most important to Which function is most important to this type of organization? this type of organization? Authority Decentralisation of Authority Standardisation Function 5 Learning Objective 5: List and describe two approaches to redesign internal processes Terms Reengineering Definition changes an organisation’s orientation from ____________ to _____________ through f________ r__________ and r_________ r_________ of business processes Empowerment taking ____________ and ____________ from managers and giving it to ____________. Empowered ___________ develop feelings of competence and self-determination and believe their work to have meaning and impact 6 FNDB022– Foundation Management Week 9– Motivation and Goal Setting Learning Objective 1: Explain the basics of motivation Learning Objective 2: Use equity theory to explain how employees’ perceptions of fairness affect motivation Learning Objective 3: Use expectancy theory to describe how workers’ expectations about rewards influence motivation Learning Objective 4: Explain how reinforcement theory works and how it can be used to motivate Learning Objective 5: Describe the components of goal-setting theory and how managers can use them to motivate workers Learning Objective 1: Define Motivation …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… What goals do you have for your study? …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… What “forces” stop you from being motivated (demotivate you)? …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… 1 Briefly explain the following equation: Job Performance =Motivation x Ability x Situational Constraints. …………………………………………………………………………………………………………… Job Performance …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… Motivation …………………………………………………………………………………………………………… ………………………………………………………………………………………………………… …………………………………………………………………………………………………………… Ability ………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… Situational Constraints …………………………………………………………………………………………………………… ………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… ……………………………………………………………………………………………………… Explain and interpret Maslow’s Hierarchy of Needs What are needs? …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… How do needs motivate workers? …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… 2 Maslow’s Needs classification People have _____________, so they perceive reality accurately, have a sense of awe, wonder and gratitude about life. They are not selfcentered but rather problem-centered and focus on how to improve. How might an organisation fulfil the need? As individuals, we naturally wish to excel or be exceptional, to be noticed for our unique talents and capabilities. Once one has some measure of _____________________, one gains the psychological freedom to be creative and to grow as well as to be more generous to others Lack of interactions, human relationships and the sense of __________________ may result in depression or loneliness. An abundance of love and community often sustain people through difficult times, the healthiest, happiest people tend to be more involved in their communities. The ___________ needs occurs, when one loses one’s job, family, home, life savings, health insurance, etc. It makes one feel secure and protected. The __________________Needs such as breathing, food, drink, sleep, are largely (and obviously) biological and physical requirements 1. According to Alderfer's ERG theory, the lowest-order need is: a. existence b. relatedness c. physiological needs d. ego-related e. empathy 2. McClellend's learned needs theory identifies three needs. They are the needs for: a. achievement, relatedness and growth b. existence, relatedness and growth c. affiliation, growth and power d. power, self-actualisation and growth e. power, achievement and affiliation 3. Which of the following statements about needs is true? a. In all situations, higher-order needs can be used to motivate. b. The importance of lower-order needs is identified by all needs theories. c. The relative importance of the various needs may change over time in a predictable pattern. d. Higher-order needs are concerned with survival and security. e. Higher-order needs will generally not motivate people as long as lower-order needs remain unsatisfied. 3 Explain extrinsic and intrinsic rewards 1. What is an extrinsic reward? Give examples. …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… 2. What is an intrinsic reward? Give examples. …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… 3. What is the difference between extrinsic and intrinsic rewards? …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… Learning Objective 2: Explain Equity Theory General description/diagram of Equity Theory: Although the advent of professional women's sporting leagues has led to dramatic increases in opportunities for women in sports at high school, university and professional levels, significant discrepancies still exist between men's and women's sport. For example, women receive less media coverage, promotion and institutional support. According to ____________________, the motivation for women athletes to perform at the top of their ability is less than that for men. 4 Use equity theory to explain how employees’ perceptions of fairness affect motivation. The basic components of equity theory are , an internal comparison in which employees compare their and . After to their , they then make an external comparison in which they compare their O/I ratio with the O/I ratio of a , a person who works in a similar job or is otherwise similar. When their O/I ratio is equal to the referent’s O/I ratio, employees that they are being treated fairly. But, when their O/I ratio is different from their referent’s O/I ratio, they perceive that they have been treated , under- and over- or unfairly. There are two kinds of . Under- , which occurs when a referent’s O/I ratio is better than the employee’s O/I ratio, leads to anger or frustration. Over, which occurs when a referent’s O/I ratio is worse than the employee’s O/I ratio, can lead to guilt, but only when the level of over-reward is extreme. Give a real world example to explain how an employee could feel inequity and how they might resolve this feeling …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… Learning Objective 3: Explain Expectancy Theory General description/diagram of Expectancy Theory: 5 4. According to expectancy theory, ________affect the conscious choices that people make about their motivation. a. equity, value-added and instrumentality b. valence, expectancy and instrumentality c. expectancy, reinforcement and instrumentality d. instrumentality, equity and expectancy e. expectancy, equity and reinforcement 5. According to expectancy theory, in order for people to be highly motivated, _________must be high. a. the value added b. reinforcement usage c. instrumentality d. equity e. referent power 6. On the television series Lost, a group of survivors sincerely believed that if they built a raft, they could float on it out into a shipping lane and be rescued. In terms of expectancy theory, the raft builders had a: a. low degree of instrumentality b. low valence c. potential for over-reward d. high level of expectancy e. high valence Learning Objective 4: Explain Reinforcement Theory 7. Reinforcement theory says behaviour is a function of: a. perception b. environment c. its consequences d. conscious choices e. the situations in which it occurs The ________ kinds of reinforcement contingencies are ___________ reinforcement, __________ reinforcement, ___________ and ______________. Positive reinforcement _____________ behaviour (i.e., _______ its frequency) by following behaviours with _____________ consequences. For example, receiving high grades for mid-semester test or final exam. Negative reinforcement strengthens behaviour by _________ an ___________ consequence when employees perform a __________ behaviour. For example, some of your grading may be tied to your attendance or participation in all unit classes. By contrast, punishment _________ behaviour (i.e., __________ its frequency) by following behaviours with ___________ consequences. For example, the teacher may only ask students who have not performed well in class (e.g. low contribution to group activities) to present their insights to the whole class. Extinction is a reinforcement strategy in which a _________ consequence is no longer allowed to follow a previously reinforced behaviour. By removing the positive consequence, extinction _________ the behaviour, making it less likely to occur. For example, your teacher may offer you feedback or hints for upcoming assessment where you participate in class, however inadequate or uninspired participation may not achieve the same results. Thus, _____________ act to either strengthen or weaken a behaviour over time. 6 Learning Objective 5: Explain Goal Setting Theory What are the components of goal-setting theory? Goal-setting theory states that people will be to the extent to which they accept specific, challenging goals and receive feedback that indicates their progress toward goal . The four components of goal-setting theory are goal goal and performance . Goal , is the extent to which goals are detailed, exact and unambiguous. Goal challenging to accomplish. Goal , goal is the extent to which a goal is hard or is the extent to which people consciously understand and agree to goals. And performance is information about the quality or quantity of past performance that indicates whether progress is being made toward the accomplishment of a . How can managers use goal-setting theory to motivate employees? To motivate using goal-setting theory, managers should assign goals, make sure workers truly , specific performance-related and organisational goals and provide . What are SMART goals? Why are they important in goal setting theory? …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… Can goals be too challenging? What effect might this have on employee motivation? …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… 7 FNDB022 MANAGEMENT WEEK SIX LEARNING OBJECTIVES By the end of this chapter you should be able to: Explain how organisational cultures are created and how they can help companies be successful. INTERNAL ENVIRONMENT  The events and trends inside an GENERAL organisation that affect management, employees and organisational culture.  Affects what people feel and think and how they behave at work. SPECIFIC  Can you think of ways in which the internal environment impacts productivity? INTERNAL ORGANIZATIONAL CULTURE  Organisation culture concerns the values, beliefs and attitudes shared by organisational members.  When employees enjoy the space they work in, it helps to foster a positive organisational culture. SOURCES OF ORGANIZATIONAL CULTURE Company Founder Organizational Stories Organizational Heroes • Imprint beliefs, attitudes and values on the company and is instrumental in creating the culture • organisational Told to make sense of internal events and changes, and to emphasise cultural assumptions, decisions and actions • People celebrated for their qualities and achievements within an organisation SUCCESSFUL ORGANIZATIONAL CULTURES Adaptability Involvement Consistency Clear vision Sales growth Employee satisfaction Return on assets Profits Quality Creating Change CHANGING ORGANIZATIONAL CULTURE Behavioral Addition Behavioral Substitution Changing Visible Artifacts CHANGING ORGANIZATIONAL CULTURE • Behavioral addition: The process of having managers and employees perform a new behavior • For example, staff learn a new set of skills when managing customers. Eg: soft-skills training CHANGING ORGANIZATIONAL CULTURE  Behavioral substitution: Having managers and employees perform a new behavior in place of another behavior.  For example, respectful language towards or about diverse staff members CHANGING ORGANIZATIONAL CULTURE  Change visible artifacts:  The physical aspects of the organization that you can see and touch  Such as the office design and layout, or company dress codes VIDEO LINKS Corporate culture Apple example: https://www.youtube.com/watch?v=EcHpgsTg458 Simon Sinek: how great leaders inspire action: http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action?language=en TIME TO FINISH WORKBOOKS! WEEK 7-ETHICS AND SOCIAL RESPONSIBILITY
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