Groups & Teams L2

Teams: small group of ppl with complementary skills. Work together 2

achieve shared purpose & hold themselves mutually accountable 4 its
accomplishment
Formal team: officially recognised and supported by the org. Appears on
org. chart Functional team: formally designated work team with a manager
or team leader.
Informal team: Not recognised on org chart. Not officially created to serve
an org purpose. Emerge as part of informal structure & from natural or
spontaneous relos among ppl.
Types of teams: Committee. Project team or task force. Cross-functional
team. Employee involvement team. Virtual teams. International teams. Self
managed work teams.
Hierarchy vs. Self managed teams: in a hierarchy, a single person has
authority over subordinates & responsibility 4 their performance. In a selfmanaged work team, all members are responsible 4 their performance.
Ingredients of a useful team
Nature of task: 1) teams need clear ambiguous statement of what intended
to achieve (written)
2) if task is more complex, more communication & interaction needed to
deal with greater range of issues.
Org setting (what org provides): resources, technology, structure (org
structure of groups etc.) Rewards (4 performance)
Info (Access2best info= best decisions made)
Team size: balance is needed. Too many workers= hard to communication
and interact. But more ppl to share the work load.
Choosing People for a Team
- skill set/level
- seniority
- personalities
- Diversity vs. Similarity (balance is essential)
Similarity more likely ppl will get along easy to manage
Diversity greater range of ideas, XP and perspectives.
Stages in team development:
Forming stage: Initial entry of members. Getting to know eachother.
Whats considered acceptable behaviour? Determine task.
Storming stage: Period of high emotionality and tension among group.
Hostility and infighting. Clarification of members expectations.
Norming stage: Group begins 2 come 2gether as coordinated unit. (Aka
initial integration)
Performing stage: emergence of a mature, organised and well-functioned
group. Stable structure. Team maturity.
Adjourning stage: A well-integrated group able to disband when work is
finished but willing 2 work together in future.
Team maturity: trust among members, open communications, sharing
leadership.
Group Norms: (behaviours, rules or standards) about performance,
interaction behaviour, and punctuality.
Cohesiveness: The degree to which members r attracted to a team and
motivated to remain part of a team. Can be beneficial if paired with positive
performance norms.
Guidelines for team cohesiveness: Agreement on team goals. Membership
homogeneity. Inc interaction among members. Decrease team size.
Introduce competition with other team. Reward team. Provide physical
isolation from other teams.
Cohesiveness versus Norms
- Positive Norms + High Cohesiveness
high performance + strong commitments to supportive norms
- Positive Norms + Low Cohesiveness
moderate performance and weak commitments to supportive norms
- Negative Norms + Low Cohesiveness
low-to-moderate performance and weak commitments to harmful norms
- Negative Norms + High Cohesiveness
low performance and strong commitments to harmful norms.
Task and Maintenance Needs
Task Activities contribute directly to teams purpose + performance
Maintenance Activities support the emotional life of a time
Decision-Making in Teams
1) Decision by lack of response
2) Decision by authority rule
3) Decision by minority rule (2/3 dominant members)
4) Decision by majority rule (formal voting process)
5) Decision by consensus (one alternative with high interest, others agree)
6) Decision by unanimity (all members agree)
Groupthink: tendency of members in a highly cohesive
group to lose their critical evaluative capabilities. Symptoms of it: illusions
of group invulnerability rationalising unpleasant and disconfirming data.
Belief in inherent in-group morality. Negative stereotypes of competitors.
Pressure to conform. Self-censorship. Illusions of unanimity. Mindguarding.
Brainstorming: All criticism is ruled out. Freewheeling is welcome. Quantity
is important. Building on one anothers ideas is encouraged.
Nominal Group Technique: Steps:
1. work alone, identifying possible solutions.
2. Ideas are shared in a round-robin fashion without any criticism or
discussion.
3. Ideas are discussed and clarified in a round robin sequence.
4. Members individually and silently follow a written voting procedure. 5.
Last two steps are repeated as needed.
Efficiency in teams: more concerned with productivity rather than
communication or relationships. Tips for productive groups: conducting
and behaving in a meeting. Prepare. Contribute After each meeting, write
the minutes and circulate them to all team members.

Organising: create structures of working relationships between org members

that allow them to work together to achieve goals. Also involves determining
success of structure. (chain of command, departmentalisation and span of
control)
Leading: determine direction to follow, articulate clear vision, energize &
enable members. Involves use of power, influence, vision, persuasion, and
communication skills.
Controlling: evaluate how well org is achieving goals and action 2
maintain/improve performance.
The manager as a role player: Based on Mintzberg and others. Roles include
informational (monitor, disseminator + spokesperson), interpersonal
(figurehead, liaison +l leader) and decision-making (entrepreneur,
disturbance handler, negotiator + resource allocator).
Manager viewed in context of job values, experience, knowledge, mental
models + skills competencies.
Manager zones to work in inside (with subordinates), within (with
managers + ppl in other units of org.) + outside (outside managers org.)
Manager as an agenda setter: Leadership as a mgmt focus?
Not included in the Classical model, which focused on the use of power.
Kotter presents leadership as agenda setting
Setting a direction
Developing a vision
Aligning ppl with that vision
Motivating and inspiring those ppl
Mgmt as a set of skills: There are three sets of skills managers need to
perform effectively
Conceptual skills ability to think analytically and achieve integrative
problem solving
Human skills ability to work in cooperation with others
Technical skills ability to apply expertise and perform a special task with
proficiency.
Lower level managers use skills in ratio ~ 20:30:50
Higher level managers use skills in ratio ~ 50:30:20
Sources of Power (leading): Reward (remuneration), coercive (intimidation),
legitimate (automatic authority), referent (positive attributes) + expert
(knowledgeable).
Open Systems: A view or set of assumptions that we use to understand org..
The open systems model assumes that organisations are composed of
interrelated parts that function together to achieve a common purpose.
Organisations interact with their environments, i.e. they are open to, not
closed off from their context.
Systems performance: one aspect of the org. performance is adding value
(making output worth more than input).
Efficiency: a measure of the resource costs associated with goal
accomplishment.
Productivity: A summary measure of the quantity and quality of work
performance with resource utilisation taken into account.
Effectiveness: A measure of task output or goal accomplishment
Managing ppl for productivity L4
Industrial Revolution:
Mgmt was practiced well before the Industrial Revolution and was prevalent
after the Industrial Revolution
More managers were needed than there were owners, so industry moved
from owner run to being run by hired managers.
Operations moved from families (cottages) to factories
Mgmt thought developed with the aim of making money: some exploitative
(intensification) & some altruistic (satisfaction/turnover)
Profit = (sell price - raw material cost per unit) * units sold - employee cost
- Machines were made to make more machines. Machines replaced humans.
Adam Smith: studied work practices in the British Industrial Revolution
Believed in job specialisation (division of labour) as it increases efficiency
and productivity, hence profits.
- Standardised Products was the result of the IR

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MAJOR SCHOOLS OF MANAGEMENT THOUGHT:

Classical mgmt approaches: Developing universal principles for use in various
mgmt situations
Behavioural mgmt (or HR) approaches: Human needs, the work group &
social factors in the workplace
Quantitative mgmt approaches: Use of mathematical techniques for mgmt
problem solving.
Modern approach: Systems & contingency views of orgs
CLASSICAL APPROACH HAS THREE BRANCHES:
Scientific mgmt (Frederick Taylor): Develop rules of motion, standardised
work processes and proper working conditions for every job. Select workers
with the right abilities for the job. Train workers to do the job and provide
proper incentives. Support workers by planning their work and removing
obstacles.
- High Wages and Low Unit Costs
more output for the same fixed costs = more profit
- Supported/Advocated Cooperation between workers and mgmt.
Scientific mgmt the Gilbreths
Motion study. Science of reducing a task 2 its basic physical motions.
eliminating wasted motions improves performance. Eventually they became
interested in employee fatigue. They noted that physical aspects of the
workplace cause stress leading to fatigue (lighting, heating, design of
machines)
change in emphasis from financial to ppl centred
Administrative mgmt theory (Fayol):
Fayols Rules of mgmt:
Foresight to complete plan of action for the future
Organisation - to provide and mobilise resources to implement the plan
Command - to lead, select and evaluate workers 2 get the best work
towards the plan
Coordination - to fit diverse efforts together, ensure information is shared
What mgmt is. What managers do L3
and problems solved
Organisation: A collection of ppl working together. Purpose is to provide
Control - to make sure things happen according 2 plan and to take
useful G+S that return value to the society and satisfy customer needs in
necessary corrective action
order to justify continued existence. A group of resources (human,
physical, intangible) that together can achieve what they could not achieve - FOLC was created off FOCCC as a basis
Administrative principles (Henri Fayol)
on their own
Key principles of mgmt
for this achievement to take place these resources must proceed in an
Scalar chain
orderly manner i.e. these resources need to be managed
Unity of command always and only take orders from immediate superior
Organisation as an Open System
- organisations are composed of interrelated parts that function together to Unity of direction clear task outline and mission statement.
Administrative theory (Mary Parker Follett)
achieve a common purpose
~ Groups and human cooperation managers job is to help all employees
- organisations interact with their environments ie they are open to, not
cooperate and achieve integration of interests.
closed off from their context
~ Forward-looking management insights employee ownership creates sense
- consumer feedback/environment influences processes for future
of collective responsibility (precursor of employee ownership, profit sharing
Efficiency:
- productivity a summary measure of the quantity and quality of work and gain sharing).
performance with resource utilisation taken into account
Bureaucracy Bureaucratic org. (Max Weber)
- efficiency a measure of the resource costs associated with goal
An ideal, intentionally rational and very efficient form of org.
accomplishment.
Based on principles of logic, order & legitimate authority. On paper, looks
Effectiveness:
perfect.
A measure of task output or goal accomplishment. Effective if costs
Characteristics of bureaucratic org:
were low and output value is high.
Clear division of labour Clear hierarchy of authority Formal rules and
Mgmt: what managers do advantageous (benefit) exercise (utilisation) procedures Impersonality Careers based on merit
of organisations resources
Possible disadvantages of bureaucracy:
LEVELS OF MANAGEMENT:
Excessive paperwork or red tape Slowness in handling problems
Senior managers: responsible 4 performance of org as a whole or for one HR approaches:
of its larger parts.
Behavioural mgmt (or human resource) approaches include:
Middle managers: report 2 top managers while being in charge of relatively 1) Hawthorne Studies
large departments or division
Initial study examined how economic incentives and physical conditions
Team leaders/supervisors: ppl in charge of small work groups composed of affected worker output (light conditions, temperatures, personal space etc)
non-managerial workers
No consistent relationship found
TYPES OF MANAGERS:
Psychological factors influenced results.
Line managers: responsible for work activities that directly affect an orgs
Relay assembly test-room studies
outputs.
2) Maslows theory of human needs
Staff managers: use technical expertise to advise and support the efforts
Self actualisation, esteem (recognition from others, status), social needs
of line workers.
(acceptance, apart of group), safety needs (house), physiological needs (food
Functional managers: responsible for a single area of activity.
and water)
General Manager: responsible for more complex units that include many
Deficit principle: A satisfied need is not a motivator of behaviour.
functional areas.
Progression principle: A need becomes a motivator once the preceding lowerVARIOUS WAYS OF LOOKING AT MANAGING:
level need is satisfied.
Disciplines: mgmt viewed as a set of discrete disciplines with little overlap 3) McGregors Theory X and Theory Y
but substantial interrelation. To perform the function, you need the
Managers create self-fulfilling prophecies.
knowledge
Theory X managers create situations where workers become dependent and
POLC: mgmt is seen as a set of functions.
reluctant.
Theory Y managers create situations where workers respond with initiative
and high performance.
Planning: where managers identify and select appropriate goals & courses of
action & how to allocate resources. (deciding goals, deciding course of action
+ deciding how to allocate resources)

Theory X
assumes that workers:
dislike work

Theory Y
assumes that workers are:
willing to work

lack ambition
are irresponsible
resist change
prefer to be led

capable of self-control
willing 2 accept responsibility
imaginative and creative
capable of self-direction

No definite answer for above. Comes down to opinion.

Managers need to formulate strategies to make employees work effectively
and efficiently.
4) Argyriss theory of adult personality.
- Classical mgmt principles and practices inhibit worker maturation and are
inconsistent with the mature adult personality.
- Mgmt should accommodate the mature personality
Mgmt practices consistent with the mature adult personality:
Increasing task responsibility Increasing task variety Using participative
decision-making.
MANAGEMENT SCIENCE
Mgmt science (operations research) foundations
Scientific application of mathematic techniques 2 mgmt problems
Techniques and applications include:
Mathematical forecasting
Inventory modelling
Linear programming
Queuing theory
Network models Simulations
Quantitative analysis today
Software and hardware developments have expanded potential quantitative
applications to managerial problems.
Good judgement and appreciation for human factors must accompany use
of quantitative analysis.
Theory Z describes a management framework emphasising long-term
employment and teamwork
SYSTEMS THINKING
System: Collection of interrelated parts that function together to achieve a
common purpose
Subsystem: A smaller component of a larger system
Open system: An org. that interacts with its environments in the continual
process of transforming resource inputs into outputs.
Contingency thinking: Tries to match managerial responses with problems
and opportunities unique to different situations. No one best way to manage.
Appropriate way to manage depends on the situation.
Managing the supply of ppl. HRM L5
HRM is responsible for the supply and treatment of ppl across the org
2 CONTEXTS FOR HRM
Regulatory Context: Set by government, world bodies
Discrimination eg. Racial Discrimination Act 1975,
Sexual harassment: Employment Relations Act 2000
Affirmative action: Equal Opportunity for Women in the Workplace Act
1999
Organisational Context: Various functions, Planning, Staffing/recruitment.,
Performance mgmt, Development
HRM is the application of mgmt techniques (POLC, Taylor, Fayol etc) to the
Human Resource function.
The HR function is charged with providing the org with the right ppl at the
right time for the right cost.
HRM:
Defining HRM: - Process of attracting, developing and maintaining a quality
workforce.
1) Attracting a quality workforce: HR planning, recruitment and selection
2) Developing a quality workforce: Employee orientation, training &
development, & career planning and development
3) Maintaining a quality workforce: Mgmt of employee retention and
turnover, performance appraisal, compensation and benefits.
Strategic HRM: Applies the HRM process to ensure the effective
accomplishment of organisational mission and strategies.
HR PLANNING PROCESS
Steps in the HR planning process:
1. Review org mission, objectives & strategies.
2. Review HR objectives and strategies.
3. Assess current human resources.
4. Forecast HR needs.
5. Develop and implement HR plans.
Demand: # of employees needed
Supply: # of employees available
JOB ANALYSIS: Identifying the tasks, duties and responsibilities that make up
a job and the knowledge, skills, and abilities needed to perform the job.
Job analysis methods: Observing what current workers do.
Having workers and managers fill out questionnaires.
RECRUITMENT: Activities designed to attract a qualified pool of job
applicants to an org.
Steps in recruitment process:
1. Advertisement of a job vacancy
2. Preliminary contact with potential job candidates
3. Initial screening to create a pool of qualified applicants.
External recruitment: Seeking outside the firm for ppl who have not worked
at the firm previously.
Internal Recruiting: Seeking to fill open positions with current employees
from within the firm. Benefits of internal recruiting: Job candidates, their
qualifications, and availability are already known. Current employees know
the firms culture and are familiar with the organization. Internal
advancement (promotion from within) can serve to motivate employees
Realistic Job Preview: Providing an honest assessment of the adv and
disadv of a job and org . (Avoids hiring, training and then losing an employee
because as applicants, they misperceived the job before agreeing to come to
work).
SELECTION: Determining an applicants qualifications related to the job
requirements
Background information, Interviews Physical ability tests: Paper-and-Pencil
Tests, Ability tests Personality tests. Performance Tests and References
Selection tools must be reliable and valid:
- Reliability is the degree to which the tool measures the same thing each time
it is used.
- Validity is the degree to which the test measures what it is supposed to
measure
Socialisation: process of influencing expectations, behaviour & attitudes of
new employee in a way considered desirable by org
Orientation: Set of activities designed to familiarise new employees with their
jobs, coworkers & key aspects of the org.
TRAINING AND DEVELOPMENT:
Training: Set of activities that provides the opportunity to acquire and improve
job-related skills
On-the-job training: Job rotation, Coaching, Mentoring, Modelling
Off-the-job training: Mgmt development
Diversity Management: managing an individuals broad range of skills and
trying to improve them or ensure they reach a certain standard.
Needs Assessment: An assessment of which employees need training or
development and what type of skills or knowledge they need to acquire.
PERFORMANCE APPRAISAL: evaluation of employees job performance and
contributions to their organization.
Performance Feedback: share PA information and give subordinate chance to
reflect own performance
Trait Appraisals: assessing subordinates on personal characteristics that are
relevant to job performance
Behaviour Appraisals: actual actions and behaviours that workers exhibit on
job.
Results Appraisals: assesses what a worker accomplishes/results obtains.
Objective Appraisals: assesses performance based on facts
Subjective appraisals: Assessments based on a managers perceptions of
traits, behaviour, or results. (Graphic rating scales Behaviourally anchored
rating scales (BARS) Behaviour observation scales (BOS) Forced ranking
systems)
PERFORMANCE FEEDBACK:
Self appraisals: can supplement manager view
Peer appraisal: Coworkers provide appraisal; common in team settings...
360 Degree: A performance appraisal by peers, subordinates, superiors, and
clients who are in a position to evaluate a managers performance
Formal appraisal: An appraisal conducted at a set time during the year and
based on performance dimensions that were specified in advance
Informal appraisal: unscheduled appraisal of ongoing progress and areas for
improvement
PAY AND BENEFITS:
Pay level/grade: The relative position of an orgs incentives in comparison
with those of other firms in the same industry employing similar kinds of
workers.

High wages attract and retain high performers but raise costs; low wages
can cause turnover and lack of motivation but provide lower costs
Pay Structure: The arrangement of jobs into categories based on their
relative importance to the organization and its goals, level of skills, and
other characteristics.
Benefits: - Legally required: social security, workers compensation
Voluntary: health insurance, retirement, day care Cafeteria-style
benefits plans allow employees to choose the best mix of benefits for
them; can be hard to manage.
THE ORGANISATIONS ENVIRONMENT L6
Organisations enviro.: Everything outside the org.
The set of forces and conditions (constraints) that operate beyond an
org.s boundaries but affect a managers ability to acquire and utilise
resources
Organisations domain: range of products and services it supplies, the
population served and the transformation processes it performs
Excludes resources required eg. raw material
Includes products, services, markets, ppl, technologies /skills
Domain Boundary: sets what org will/can do and will not/cant do.
Actual enviro.: what is actually there in the enviro., the objective reality
Perceived enviro.: what you see, consider or perceive to be there in the
enviro.. Depends on who you are (in terms of training/ education,
experience, personal make-up) & where ur standing (in terms of
functional area, position in hierarchy.
THREE MODELS OF THE ENVIROMENT
THOMPSON: 2 stages
Specific or Task enviro. - factors/components of enviro. that are directly
relevant to achieving orgs goals. The nature of industry competition.
General enviro. factors/components of enviro. that may have an impact
on orgs but their relevance is unclear. Split into four categories.
Task Env1 Suppliers Task Env2 Distributors
Task Env3 Customers Task Env4 Competitors
EMERY & TRIST
Considered the enviro. from the perspective of change
Identified four kinds of enviro.:
Placid Randomised enviro. (relatively unchanging, least threat to the
org.)
Placid Clustered enviro. Also slow changing
Threats come in clusters rather than randomly
Disturbed Reactive enviro. Much more complex than placid
environments Many competitors Potential for oligopolies Your moves
may prompt a response & vice versa
Turbulent Field enviro. Most dynamic; highest uncertainty Interrelatedness of the enviro. is high
Change always present Low ability to predict/anticipate
MEYER
Environment seen as a system of ideologies and institutions
Society can be viewed as a cultural project organising human activity
Distinct from the Modernist as it sees the enviro. as informing culture
which then specifies structure
Comparison:
Thompson Static, little recognition of dynamics Assumes a Western
interpretation of social reality Emery & Trist Also assumes a Western
interpretation Recognises the interconnectedness of components of the
enviro. and the existence of change Meyer Adds a perspective that the
enviro. is itself shaped by ideology, which draws from universal rules.
BARRIERS TO ENTRY: Factors that make it difficult and costly for org to
enter particular task enviro. or industry.
Economies of scale: Cost adv associated with large operations
Brand loyalty (Customers preference for the products of organizations
currently existing in the task enviro.)
INDUSTRY LIFE CYCLE:
Birth: industry competitors seek 2 develop winning technology
Growth: industry products gain acceptance and rapid growth in product
demand attracts new competitors
Shakeout: industry growth slows, weak firms exit the industry, and rivalry
increases
Maturity: the market stabilizes as demand levels off, a few large
competitors now dominate the industry
Decline: demand for industry products declines, competition increases,
failing competitors either exit the market or are acquired by rival firms
GENERAL ENVIRONMENT:
Economic Forces eg. Interest rates. Managers usually cant impact/control
these. Forces have profound impact on the firm.
Technological Forces: Results in new opportunities or threats to
managers Often makes products obsolete very quickly. Can change
how managers manage.
Sociocultural Forces: Pressures emanating from the social structure of a
country or society or from the national culture
Social structure: the arrangement of relos between individuals and
groups in society
National culture: the set of values that a society considers important and
the norms of behaviour that are approved or sanctioned in that society.
Demographic Forces outcomes of change in, or changing attitudes
towards, the characteristics of a population eg. Age
Political Forces Increases in laws and regulations increase the costs of
resources and limit the uses of resources that managers are responsible
for acquiring and using effectively and efficiently.
Global Forces Important opportunities and threats to managers: The
economic integration of countries through free-trade agreements (EU) that
decrease the barriers to trade.
Changes in Political and Legal and Economic Forces:
A worldwide shift from totalitarian regimes toward representative
democracies. A strong movement from command and mixed economies
toward free market systems.
Reducing the Impact of Environmental Forces
Top mgmt: devise strategies that take adv of opportunity and counter
threats
Middle managers: collecting info about competitors intentions, new
customers, & new suppliers 4 firms crucial/low-cost inputs
First-line managers: use resources efficiently & get closer to customers
NATURAL ENVIRONMENT
Consumption involves the exploitation of the natural enviro. e.g. air for
cars
The natural enviro. should be included in models of an organisations
enviro. It is a supplier & an unwilling consumer of by-products and
consequences of consumption It can and does react (slowly).
VALUES AND CULTURE
Culture: the learned beliefs, values and customs that regulate the
behaviour of members of a particular society. Usually involves; rites +
rituals, symbols and heroes.
Values: broad preferences concerning appropriate courses of action or
outcomes
Value congruence: positive feelings upon meeting other who exhibit
values similar to own
Hofstedes five dimensions of national culture:
Power distance: willingness of culture 2 accept status and power
differences among members. Respect for hierarchy in orgs.
Uncertainty avoidance: The cultural tendency toward discomfort with
risk & ambiguity. Preference 4 structured vs. unstructured org situations.
Individualism-collectivism: The cultural tendency 2 emphasize
individual self-interests or group relos. Preferences 4 working individually
or in groups.
Masculinity-femininity: The tendency of a culture to value
stereotypical masculine or feminine traits. Emphasizes
competition/assertiveness vs. Interpersonal sensitivity/relos.
Long-term/short-term orientation.: The tendency of a culture to
emphasize future oriented values vs. present-oriented values. Adoption of
LT or ST performance horizons.
Gordon Allports values categories:
Theoretical values, Economic values, Aesthetic values, Social values,
Political values, Religious values.
Maglinos categories of workplace values:
Achievement, Helping & concern 4 others, Honesty, Fairness

Strong cultures: commit members to do things that are in the best

interests of org reinforce these habits.
The best organisations have strong cultures that:
are performance-oriented emphasise teamwork

OPERATIONS MANAGEMENT L9
Operations Mgmt: application of basic concepts and principles of mgmt
(POLC, Mintzberg roles) to segments of the org. that produce organisations
goods/services.
Responsible for:
Supply of inputs
Production system (technology, Operability, production cost)
Impact on competitive adv through improvement in QUALITY,
EFFICIENCY and RESPONSIVENESS OF CUSTOMERS (action taken to
respond to needs)
Value chain mgmt: how each area adds value?
Comes from Porter- described the need to not look at competitive adv as a
whole BUT look at various elements. How each contributes to firms strategy.
3 strategies of low cost, differentiation and focus. The aim is to gain
competitive adv. One way is outsourcing.
Categories of activities:
a) Primary activities (inbound logistics, operations, marketing and sales
b) Support activities (infrastructure, HRM, technology dev
Improving Quality: the concept of quality applies the products of both
manufacturing and service firms.
A firm who provides higher quality than others at same price is more
responsive to customers.
Higher quality can lead to higher efficiency through lower waste levels &
operating costs.
Quality Assurance: Australian Standards Certification
Quality is Subjective:
1) Metric Based (measureable)
weight, freshness, ingredients. Conformance quality.
2) Perception Based
taste, texture, appearance, pleasure.
design quality attributes that customer perceives as contributing to worth
of product.
Price vs. Attributes
- Firms offering high quality, fast service and other customer desires, often
must raise price.
- Customers must tradeoff price for attributes.
- Operations management tries to push the price/attribute curve to the right
with better production.
- Provides more attributes at the same cost.
- By enhancing the price/attribute relationship, the firm can increase its
competitive position.
Total Quality Mgmt (Deming, Juran and Feigenbaum) focus on improving
the quality of organisations products and services and stresses the all
organisations functional activities should be directed toward this goal as well
as ZERO defects
QUALITY CIRCLES: groups of employees who meet regularly to discuss
ways to increase quality
TQM leads to much higher labour productivity. When quality rises, less is
wasted on scrap (EFFICIENCY)
IMPROVING EFFICIENCY: fewer inputs required means higher efficiency.
Total factor productivity = outputs/all inputs
Labour productivity = outputs/direct labour
Facilities Layout, Flexible Manufacturing and Efficiency
1) Facilities Layout The operations management technique whose goal is to
design the machine worker interface to increase production system efficiency.
2) Flexible Manufacturing operations management techniques that attempt
to reduce the setup costs associated with a production system.
3) Product Layout machines are organised so that each operation is
performance at workstations arranged in a fixed sequence.
4) Process Layout self-contained workstations not organised in a fixed
sequence.
5) Fixed-Position Layout the produced stays in a fixed spot and components
produced at remote stations are brought to the product for final assembly.
Flexible Manufacturing: reduces setup costs by reducing the time required to
reset the production line for a different product.
Efficiency: using JIT inventory systems is efficient because it reduces holding
costs for warehousing, storage, inventory tracking, and the cost of capital tied
up in inventory.
Process Re-engineering: the fundamental rethinking and radical redesign of
the business process to achieve dramatic improvement in critical measures of
performance. Eliminates duplication of work and systems.
Operations Systems (Joan Woodward) processes and activities to turn
inputs into G/S. Made up of ppl, materials, facilities & info. Purpose is to add
value.
Types include: Continuous (steady flow of inputs and outputs, standardised
eg post office) and Intermittent A.K.A batch or jobbing shop (1 facility can
produce many products eg car repair) small-batch, mass production and
continuous process
Work Flow: Movement of work from one point to another in the manufacturing
or service delivery process.
Work Process: refers to a related group of tasks that together create value
for the customer.

Budget & financial control referred to as output control

Behaviour control eg. direct supervision can be efficient but has limitations
such as expense & some jobs are complex
Culture & clan controlclan control is that exerted on indivs & groups in an
org by shared values, norms, behav & expectation
Hot stove ruleanalogies for disciplinary situations that are immediate,
consistent, informative, supportive, realistic and directed towards actions, not
ppl.
Policies: broad guidelines
Procedures: present a plan of action for specific situations.

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Quality control: checking processes, materials, products 7 services to ensure

they meet high standards
MANAGEMENT BY EXCEPTION
the technique of focusing managerial attention on situations where the
difference between actual and desired performance is the greatest.
MANAGEMENT BY OBJECTIVES (MBO)
a structured process of reg communication. Supervisor & worker jointly set
workers performance objectives. Jointly review results. Formal agreement
specifying objectives, plans, standards for measuring results & procedures for
reviewing results.
Pitfalls: tying MBO to pay, focusing 2 much attention on easily quantifiable
objectives, excessive paperwork, telling workers their objectives
Advs: focuses worker on most important tasks, focuses supervisors efforts on
important areas of support, relationship building, worker has structured opp to
participate in decisions.

CONTROL - L10
Strategy: defines what you are going to do and how you are going to do it.
Planning Process involved here. (Read L3)
Organisational control: the systematic process through which managers
regulate organisational activities to make them consistent with expectations
established in plans, targets, and standards of performance.
Strategic plans: define LT needs and set action directions
Operational plans: define specific activities to implement strategic plans
Standing plans: policies & procedures for repeated use
Policies are broad while rules/procedures are specific
Single-use plans: used once to meet the needs of a well-defined situation in a
timely manner
Budgets: single-use plans that commit resources to activities
Project schedules: single-use plans that identify the activities req to
accomplish a specific major project
Forecasting: making assumptions about what will happen in the future
qualitative & quantitative
Contingency planning: identifying alternative courses of action to be used if
and when original plan is inadequate
Scenario planning: identifying alt future scenarios
Benchmarking: use of external comparisons to better evaluate ones current
performance
Participatory planning: requires the planning process include ppl who will be
affected by the plans or help implement them
STEPS IN CONTROL PROCESS
-Establish objectives and standards output standards (eg. quantity &
quality) & input standards (eg. amount of work expended on task)
-Measure actual performance (measurements sometimes invalid)
-Compare results with objectives and standards methods of comparing
desired & actual performance (historical, relative & engineering comparison)
-Take corrective action as needed mgmt by exception (giving priority
attention to situations showing greatest need for action)
Feedforward controls: employed before work begins & ensures objectives,
resources & directions are in place
Concurrent controls: monitor ongoing operations to make sure they are done
according to plan
Feedback controls: provide useful info 2 improve future ops
Compensation & benefitshelp attract & keep a qualified, motivated
workforce
Progressive discipline: ties reprimands to the severity & frequency of the
employees interactions
Important financial aspects: liquidity, leverage, asset mgmt & profitability
Methods of inventory control: JIT & economic order quant

Th

ink

Structure L8
Organising the process of arranging ppl & other resources to work
together to accomplish a goal
Formal vs informal structure: formal = structure of org in its official state.
informal = shadow org made up of unofficial working relations between
org members. ADV (of informal) 1. Help ppl accomplish work 2. Overcome
limits of formal 3. Access to interpersonal networks 4. Connect with ppl
who can assist. DISADV 1. May go against interests of entire org 2.
Susceptible to rumours 3. May carry inaccurate info 4. Resistance to
change 5. Diversion of work efforts from important objectives 6. Outsiders
feel alienated
Types of structures
Functional ppl with similar skills & performing similar tasks are grouped
together, works well in small orgs
-ADV 1. Economies of scale 2. Tasks consistent with training/skills 3.
HQ technical prob solving 4. In-depth training & skills development 5.
Clear career paths within functions
-DISADV 1. Difficult to pinpoint responsibilities 2. Functional chimneys
prob 3. Sense of co-op & common purpose breaks down 4. Narrow view
of performance objectives 5. Excessive upward referral of decisions
Divisional group ppl who work on the same prob/in same area, suited
to complex orgs
-ADV 1. More flexible responses to enviro changes 2. Improved
coordination 3. Clear points of responsibility 4. Expertise focused on
specific custmrs, prods & regions 5. Greater ease in restructuring
-DISADV 1. Duplication of resources across divisions 2. Competition &
poor coordination across divisions 3. Emphasis in divisional goals over org
goals
MATRIX combine func. & div., used in manufacturing, service industries
etc
-ADV 1. Better interfunctional co-op 2. Increased flexibility in
restructuring 3. Better custmr service 4. Better performance accountability
5. Improved decision making
-DISADV 1. 2 bosses = power struggle, task confusion, conflict 2. Time
consuming team meetings 3. Increased costs
MINTZBERGS COMPONENTS
OPERATING CORE those who perform basic work related directly to
product.
STRATEGIC APEX responsible overall performance
MIDDLE LINE joins strategic apex and operating core (middle managers
link)
TECHNOSTRUCTURE analysts & support staff who design, plan &
change operations
SUPPORT STAFF support org outside operating workflow
STRUCTURAL CONFIGURATION
SIMPLE small (no technostructure/support staff), strategic apex
coordinate by direct supervision
MACHINE BEUROCRACY medium-large orgs, co-ord by standardizing
practices
PROFESSIONAL BEUROCRACY small-large orgs, standardize skills,
operating core is key
DIVISIONAL FORM large orgs, standardization of outputs, middle line is
key
ADHOCRACY small orgs, emphasis on sophisticated innovation, co-ord
by mutual adjustment, support staff are key, similar to matrix
HORIZONTAL STRUCTURES
-decrease hierarchy &increase teams
-emphasizes multi-skilling

Requires absence of hierarchy, empowerment of members, acceptance of

impermanence.
Virtual org operates in a shifting network of external strategic alliances that
are engaged as needed & supported by IT use.
Recent trends in organising: shorter chains of command, less unity of
command, wider spans of control, more delegation & empowerment,
decentralisation with centralisation, reduced use of staff.
Unity of command: should report to only 1 supervisor
Wide spans of control: less levels of mgmt
Framework for Design: people, size, technology, strategy + enviro.
Loose-Tight Structure: Work efforts are both centrally coordinated and
highly interdependent. Both limited information-processing capability and
expanded information-processing capability are present. Excels at simple and
repetitive tasks and complex and unique tasks. Good for production efficiency
as well as innovation creativity.

sw

allow for risk taking encourage innovation value the wellbeing of

people.
External customers: indvs who purchase a g/s prod by an org
STRATEGY L7
Planning: Identifying & selecting appropriate goals & strategies.
Strategy: The cluster of decisions & beliefs that guide the direction of the
org toward achieving its goals.
LEVELS OF STRATEGY
Corporate strategy sets long-term direction for total enterprise. Where to
invest.
Business strategy sets the strategic direction 4 a division or business unit.
How to compete.
Functional strategy: guides activities within specific area of operations.
The Mission Statement: A broad declaration of an org.s purpose that
identifies orgs purpose, products and customers.
STRATEGY SCHOOLS OF THOUGHT
1) The design school. Dominant in mgmt thought. Assumes that
managers have lots of choice
Assumes there is one best way Technical rationality
Began in the 1960s - dominant in management thought
2) The emergent school:
Challenges assumption of managers choice
Does not emphasise the idea that there is one best way
Make decisions along the way End up where you end up
Henry Mintzberg a major proponent
Criticised the design school approach as too simplistic
Mintzbergs view of strategy: Strategy is characterised by the stream of
decisions that are made. It is seen as: A consistent pattern in choices
and actions over time A posture the patterns and processes within an
org that determine its shape and capabilities A position or picture of
how the org. relates to its external stakeholders A paradigm or
perspective on the world the shared vision and values of the org
FORMULATING STRATEGY:
Strategy Formulation: Managers analyse the current situation to develop
strategies for achieving the mission.
SWOT Analysis: strengths & weaknesses (internal/micro). Opportunities
& threats (external/macro).
Porters Five Forces
A model of competition in an industry. Helps examine the attractiveness
of an industry, ie profitability. 3: cost, differentiation + focus
suppliers, new entrants, customers, substitute products, industry
competition/rivals
Corporate Level strategy: A plan of action concerning which industries an
org should invest its resources in to achieve its mission and goals. Four
principle corporate level strategies are:
Concentration on a single business Diversification
International expansion Vertical integration
Related diversification: concerns existing divisions/businesses
Unrelated diversification: entering a new business/industry
Portfolio analysis: identifies product attractiveness based on market
attractiveness (industry growth rate) and performance in market (relative
market share).
Boston Consulting Group MATRIX: Problem children new activities
that may/may not grow into successful businesses. Stars successful
products in rowing industries.
Cash cows successful prod in low growth indust. Dogs low market
share, low growth.
Vertical integration: strategy that allows a org to create value by prod its
own inputs or distrib its own products.
Formulating business level strategies
Low-cost strategy and focused low-cost (serving only 1 market)orgs
total costs below rivals.
Differentiation and focused differentiation (serving only 1 market)
Stuck in the middle pursue both cost & differentiation
HOW ARE STRATEGIES FORMULATED
General Electric business screenbusiness strengths & industry
attractiveness
Miles and Snow model pursue strategy congruent to ext environ
Prospector dynamic & high-potential
Defender stable or declining
Analyser following leading competitors in high potential
Reactor following competitors as a last resort regardless
Emergentdevelop over time in streams of decisions managers make
Incrementalism incremental changes from experience

NETWORK STRUCTURES
A central core that is linked through networks of relations with contractors and
outside essential services. Network Organisations own only the essential core
functions and outsource the support functions.
Boundaryless organisations where teamwork & intense communication
take the place of formal lines of authority (break down internal boundaries).

ASPECTS OF MANAGERS PERFORMANCE L11

Ends versus Means: the end state (end or goal) is achieved by certain means.
ORGANISATIONAL EFFECTIVENESS: 4 approaches (cant be quantified):
Goal attainment effectiveness seen in ends rather than means. Problems:
whose goals? Official goals reflect actual goals? ST v LT goals? Are they
about efficiency or effectiveness?
Systems approach emphasises criteria that will increase the long-term
survival of the org., such as the organisations ability to acquire resources,
maintain itself internally as a social org. and interact successfully with its
external enviro.. Problems: some things r hard 2 measure, how important are
ends? Advs: focuses on LT survival, inc managers awareness of
interdependence of sub-parts, useful when goals are vague or difficult to
measure
Strategic contingencies proposes that an effective org is 1 that satisfies the
demands of those constituencies in its enviro. from which it requires support
for its continued existence. Concerned with those that threatens survival.
Problems: how are they identified? Subjectivity & changing rapidly. Advs:
survival important, can avoid conflict.
Competing values includes all of the key variables in the domain of
effectiveness. The main theme is that the criteria you value and use in
assessing an organisations effectiveness depends on who u r & who you
represent.
Competing values as organisations develop: 5 stages
-Entrepreneurial stage (emphasises creativity & open systems)
-Collectivity stage (develop org into cohesive group)
-Formalisation & control stage (seek efficiency and order)
-Elaboration of structure change (emphasis on flexibility, resource acquisition
& growth rate)
Management Fashion: is transitionary, function of collective beliefs, some
management techniques are considered to be pre-eminent and managers
want rational solutions to improve performance. Examples:
Downsizing BUT mentzers findings found no relationship between profits &
downsize
Aesthetic (beautiful, modern) v Mgmt fashions (rational, progressive)
Fads sap health & wealth of unwary victims. Do not promote unity.
How to Recognise Fads
Simple, one size fits all, copy-paste, falsely encouraging, prescriptive.
How should managers respond?
Understand the underlying assumptions, be sensitive to context, get the
fundamentals, adapt rather than adopt.
MIGLIORE pay attention to employees well being & development, and
know your market. Ensure high level of ethical standards.
MANAGING FOR FUTURE: SUSTAINABILITY L12
Sustainable development: dvpment that meets needs of present without
compromising the ability of future generations to meet their own needs. It
contains within it two key concepts:
The concept of needs, in particular the essential needs of the worlds poor,
to which overriding priority should be given; an idea of limitations imposed
by the state of technology and social org on the enviros ability to meet
present & future needs.
Sustainable development from a business perspective
For business enterprise, sustainable dvpmnt means adopting business
strategies and activities that meet needs of enterprise & its stakeholders today
while protecting, sustaining& enhancing human and natural resources that will
be needed in the future
Key elements
Social equity People: (human rights peace security justice gender
equality cultural diversity)
Environmental protection Planet: protecting the natural enviro., which
includes: water air land energy biodiversity: plants, animals, fish, insects etc.
climate
Economic development - Profit: Understanding the limits and potential of
economic growth what is possible and what is not possible while achieving
social equity and environmental protection. It includes: poverty reduction
responsible consumption corporate responsibility energy efficiency and
conservation waste mgmt employment and education
THREE CONDITIONS FOR A SUSTAINABLE SOCIETY
Rates of use of renewable resources do not exceed their rates of
regeneration
Rates of use of non-renewable resources do not exceed the rate at which
sustainable renewable substitutes are developed
Rates of pollution emission do not exceed the assimilative capacity of the
enviro.
Waste Hierarchy: 1. Reduce (Avoid + Minimise) 2. Reuse 3. Recycle,
4. Recovery 5. Disposal
SUSAINABLE DEVELOPMENT:
More bout new ways of thinking, than about science or ecology.
whilst it involves the natural sciences and economics, it is primarily a matter
of culture concerned with the values that ppl cherish and the way we perceive
our relationships with the natural world
Sustainable development is as much an ethical precept as a scientific
concept
Four spikes that impact sustainability:
1) Carbon spike: central in the global warming science
2) Species extinction spike
3) Consumption spike
4) Population spike
Infinite rebuild-ability: Every part (resource) is used until it is worn out
What is Climate Change?
A change in the pattern of weather over a very long period of time.
How is Human Activity Causing Climate Change?
Increasing greenhouse gas levels. Burning of fossil fuels.
Consequences of Climate Change: direct and indirect impacts on society and
environment. Proactive and positive behaviour is essential. Increase levels of
global warming prevalent in future.
CARBON FOOTPRINT
Calculated by the resources we consume and the wastes we generate. This is
converted to a spatial indicator measured in global hectares (gha) size of
soccer field (approx.)
Enough global land coverage for 2.1 gha per person
UN report says leave 12% for other species, leaving each person 1.8gha
instead of 2.1 gha.
Avg. human CF is 2.2gha exceeds eco capacity of biosphere by 20%!
Australians: avg. 7-8 gha/person (3-4x more than global avg).
USA biggest culprit, just under 10 gha/person.
Bangladesh around 0.5 gha/person. (one of most minimal).

WEEKLY ARTICLES
A leader's framework for decision making
1) As a leader of a group, club, committee or organisation, decisions have
to be made which set the future path of direction for the party.
2) A new leadership and decision-making approach was formed on
complexity science. This is known as the Cynefin Framework that allows

leaders to understand complex concepts, generate new viewpoints and

pave way for new opportunities in the real world.
3) The Cynefin Framework is divided into five sections that are
determined by the relationship between the cause of the problem and the
effect the problem has had on people. These sections are:
1. Simple: clear answer + prob. solves itself
2. Complicated: many valid answers weigh adv + disad 4 best.
3. Complex: few answers, expert needed.
4. Chaotic: on the spot, impulse decision. No time to think.
5. Disorder: query falls into multiple categories from above.
4) Leadership across contexts: good leaders will be able to adapt to
scenarios as they happen and appropriate behavioural changes can be
made to adjust to the context.
The Resource-Based View of the Firm in Two Environments
1. Resources are ongoing competitive advantages to a firm that are hard
to imitate, have no direct substitutes and enable companies to pursue
opportunities or avoid threats.
2. Property-based resources are protected by property rights such as
contracts, deeds of ownership or patents
3. Knowledge-based resources are protected by the fact that competitors
do not know how to imitate a firms processes or skills such as technical
or creative.
4. Property-based resources are likely to contribute most to performance
in stable and predictable settings.
5. Knowledge-based resources are likely to contribute most to
performance in changing and unpredictable environments.
6. Discrete resources stand-alone and have value more or less
independent of their organisational context.
7. Systemic resources have value because their components are part of a
network or system.
8. Discrete property based resources and systemic property-based
resources will produce superior financial performance in predictable
environments but will not do so in uncertain environments.
9. Discrete knowledge-based resources and systemic knowledge-based
resources will produce superior financial performance in uncertain
environments but will not do so in predictable environments.
How Strategy Shapes Structure
1. Reconstructionist approach (Blue Ocean) seeks to use strategy to
shape the structure.
2. Structuralist approach seeks to structure the organisation around their
strategy
3. An organizations success is depended on and aligned with its value
proposition, profit proposition and people proposition.
4. The difference between structuralist approach and Reconstructionist
approach is structuralist approach considers either differentiation or low
cost but reconstructionist approach consider both of them.
5. The failure to align those three propositions would lead to the failure of
business
6. The challenge for leaders is to choose the right strategy approach and
design the right framework and alignment of the three propositions to the
approach.
The Decision-Driven Organisation
The primary focus of a company or entity planning to re-organize its
structure should be the future decisions it needs to make to enable it to
reach it goals
In turn a company should conduct a decision audit aiming to
1) Identify key decisions
2) Determine where in the organization those decisions need to be made
3) organize the macrostructure around the sources of value
4) Determine the level of authority decisions need to be made at
5) Align the organization to ensure efficient flow enabling decisions to be
made
6) Help managers develop the skills necessary to making those decisions
Based on the research performed by the writers they have discovered
direct links between the ability of an organization to execute decisions
and sustain profitability (a driving statistic behind the articles suggestion
that a company should be valued on its ability to make and execute
decisions correctly)
Creating shared value
1.Business has been increasingly viewed as a major cause of social,
environmental, and economic problems
2. Shared value is the solution, which involves creating economic value in
a way that also creates value for society by addressing its needs and
challenges
3. Governments must learn how to regulate in ways that enable shared
value rather than work against it.
4. A business needs a successful community not only to create demand
for its products but also to provide critical public assets and a supportive
environment
5. Companies can create social value by
- Reconceiving products and markets
- Redefining productivity in the value chain
- Building supportive industry clusters at the companys locations
6. Generation of social entrepreneurs is pioneering new product concepts
that meet social needs using viable business models.