MGMT1001 SAMPLE MANAGING ORGANISATIONS & PEOPLE COURSE WORK UNIVERSITY OF NEW SOUTH WALES

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1 SAMPLE MANAGING ORGANISATIONS & PEOPLE COURSE WORK UNIVERSITY OF NEW SOUTH WALES

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3 Core Topics

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5 Contents by Topic Core Topics Topic 1: Introduction to Management 1 Topic 2: Individuals in Organisations 11 i

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7 Table of Contents Core Topics Topic 1: Introduction to Management 1 - Three Levels of Analysis 2 What Is Management? 3 The Aim of Management 3 Timeline of Management 3 Scientific Management Theory 4 Scientific Approaches to Management Job Design 4 Innovations in Administrative Management 5 Bureaucracy (Max Weber, ) 5 Principles (Fayol) 6 Time Spent Per Managerial Function 6 Behavioural Management Theory 7 What Do Managers Actually Do? 7 Mintzberg s Managerial Roles 7 Skills Needed by Three Levels of Management 8 21st Century Understandings of Management 8 Demands on Modern Managers 8 Topic 1 - Summary 8 Topic 2: Individuals in Organisations 11 Understanding Individual Behaviour 12 Organisational Behaviour (OB) 12 Five Important Employee Behaviours 13 Attitudes 13 Components of an Attitude 13 Three Job-Related Attitudes 13 #1: Job Satisfaction 13 #2: Job Involvement 15 #3: Organisational Commitment 15 How To Reduce Turnover? 16 Cognitive Dissonance Theory 16 iii

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9 Topic 1: Introduction to Management Presented by Dr Bernard Gan Lecture 1 1

10 Management is the process of dealing with or controlling things or people. In an organisational setting, this includes things like human resources and executive management. Most important selection criteria when recruiting graduates: 1. Interpersonal and communication skills (written and oral) 2. Passion/Knowledge of industry/drive/commitment/attitude 3. Critical reasoning and analytical skills/problem solving/lateral thinking/technical skills 4. Calibre of academic results 5. Cultural alignment / Values fit 6. Work experience 7. Emotional intelligence (incl. self-awareness, strength of character, confidence, motivation) 8. Teamwork skills 9. Activities (incl. intra and extra curricular) 10. Leadership skills Least desirable characteristics when recruiting graduates: 1. Lack of interpersonal and communication skills (etc.) 2. Poor attitude / Lack of work ethic / Approach to work 3. Arrogance/Selfishness/Aggression/Dominating 4. Lack of drive, motivation, enthusiasm and initiative 5. Poor teamwork skills 6. Poor or inappropriate academic qualifications or results 7. Inflexibility/Inability to accept direction (etc.) 8. Lack of commitment / High absenteeism / Lack of loyalty 9. Lack of emotional intelligence, self-awareness (etc.) Source: Graduate Careers Australia Ltd, 2013, Graduate Outlook Three Levels of Analysis Organisations What is an Organisation & Management? (topic 1) Strategic Management & Org Culture (topic 9) Human Resource Management (topic 8) Leadership (topic 7) The relationship between organisations and society Ethics and Creating Sustainable Org (topic 10) Global Dimensions of Management and International Business (topic 11) Individuals in organisations Individuals in Organisations (topic 2) Attitudes, Perception, Personality (topic 3) Power and Conflict (topic 6) Communication (topic 4) Understanding Groups and Teams (topic 5) 2

11 What Is Management? The Aim of Management Timeline of Management 3

12 Scientific Management Theory Frederick W. Taylor ( ) is best known for defining the techniques of scientific management. The systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency. Taylor believed that if the amount of time and effort that each worker expended to produce a unit of output (a finished good or service) could be reduced by increasing specialisation and the division of labour, then the production process would become more efficient. Scientific Approaches to Management Job Design Other famous names include Frank and Lillian Gilbreth time and motion studies - who used film and stop watches to work out new quicker ways to produce tasks. Henry Ford production line : who took the idea of the production line from abattoirs where carcasses were moved through the factory on chains and pulley systems - and introduced it into his car manufacturing plants. Frank and Lillian Gilbreth Henry Ford The Scientific-Technical Revolution and its effects on Organisations and Management: The ideas and methods of Scientific Management were what the Americans manufacturing industries needed in that era. To extend the transformation of craft work (human as the agent) to mechanisation and transformation Rise of factory system of production growth in number of employees Increasing use of technology in production Rise of corporations meaning owners did not necessarily work in the organisation (e.g. the typical share-holder) 4

13 Key features/ developments Specialisation of labour and the production line Systematic study of work tasks to create rules or one best way of performing each task Focus on both job design and organisational structures and administration Taylor (unknown to himself) had laid the groundwork for automation and off shoring. He analysed work processes into distinct, unambiguous pieces => which is exactly what computers and unskilled people would follow and execute, based on instructions designed by others. Under Scientific Management, workers had very little opportunity for further thinking, experimenting or suggestion making. One of the big problems with the introduction of all of these scientific methods was that it reduced work/ tasks to menial or boring work. Innovations in Administrative Management Bureaucracy (Max Weber, ) Characteristics: Specialisation of labour Formal rules and procedures Well-defined hierarchy Career advancement based on merit 5

14 Principles (Fayol) Fayol developed a list of 14 principles that he believed were essential to increasing efficiency in the management process. Fayol is also well-known for articulating the 5 (now 4) managerial functions what managers must do to create a high performing organisation: Planning choosing appropriate goals for the organisation Organising designing processes and systems to achieve those goals Command selecting the right employees for the job, evaluating work performance, motivating individual employees etc Co-ordinating putting together relationships/ work teams to ensure that production runs smoothly Controlling measuring and monitoring to evaluate how the system is working Time Spent Per Managerial Function 6

15 Behavioural Management Theory Develop in response to Scientific approaches to management Focus on motivational and behaviour as a mechanism to improve organisational performance Hawthorne Studies of the 1920s Maslow s Hierarchy of Needs McGregor s Theory X and Theory Y What Do Managers Actually Do? In the 1970s and 1980s ideal managerial roles were challenged by researchers who actually observed managers in their day to day life, and found that managers have a very different job than these ideals. One of the most famous studies was done by Henry Mintzberg who spent many months actually observing managers in action, and had other managers keep a detailed record of their actions each day. What he found was that managers spend much more time DOING, than thinking. Mintzberg s studies allowed him to perform 10 different but highly inter-related Management roles (specific categories of managerial behaviour). Mintzberg s Managerial Roles 7

16 Skills Needed by Three Levels of Management 21 st Century Understandings of Management Increasing emphasis on motivation, leadership and relationships The key skill is communication both oral / verbal but also the ability to develop and effectively communicate a vision/ position to different audiences the management of meaning Less overt control as organisations take advantage technology (for example, swipe cards for building access, login to PCs, keystroke monitoring) Demands on Modern Managers Managers in the 21st century often required to work smarter and harder - increased working hours, doing more with less staff/ resources, the globalisation of the business environment Pressures of conflicting demands delivering shareholder value while being ethically and environmentally responsible Empowerment efforts of the 1990s has seen increased demands for flexibility, work life balance and learning opportunities by staff Topic 1 - Summary Management is not easy There is no one best way to do it We know lots about what managers actually do every day, and what they should be doing There is an increasing emphasis on motivation, leadership and communication 8

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19 Topic 2: Individuals in Organisations Presented by Dr Bernard Gan Lecture 2 11

20 Understanding Individual Behaviour Organisational behaviour (OB) The actions of people at work Dual focus of OB Individual behaviour Group behaviour Norms, roles, team building, and conflict Goals of OB To explain, predict, and influence behaviour. Organisational Behaviour (OB) OB is the study of the actions of people at work 12

21 Five Important Employee Behaviours 1. Employee Productivity - A performance measure of both efficiency and effectiveness 2. Job Satisfaction - The individual s general attitude toward his or her job 3. Absenteeism - The failure to report to work when expected 4. Turnover - The voluntary and involuntary permanent withdrawal from an organisation 5. Organisational Citizenship Behaviour(OCB) - Discretionary behaviour that is not a part of an employee s formal job requirements, but which promotes the effective functioning of the organisation. Attitudes An attitude is an expression of favour or disfavour toward a person, place, thing, or event (the attitude object). Components of an Attitude Cognitive component: the beliefs, opinions, knowledge, or information held by a person. Affective component: the emotional or feeling part of an attitude. Behavioural component: the intention to behave in a certain way. Three Job-Related Attitudes #1: Job Satisfaction The individual s general attitude toward his or her job. Job satisfaction is affected by level of income earned and by the type of job a worker does. Job Satisfaction and Productivity 2 perspectives (from employee s views & employer s views) 13

22 Job Satisfaction and Absenteeism 2 perspectives (from employee s views & employer s views) Satisfied employees tend to have lower levels of absenteeism. Job Satisfaction and Turnover 2 perspectives (from employee s views & employer s views) Satisfied employees have lower levels of turnover; dissatisfied employees have higher levels of turnover (and also affect other employees attitude). Turnover is affected by the level of employee performance. The preferential treatment afforded superior employees makes satisfaction less important in predicting their turnover decisions. Job Satisfaction and Customer Satisfaction 3 perspectives (from employee s views, employer s views & customers views) The level of job satisfaction for frontline employees is related to increased customer satisfaction and loyalty. Actions to increase job satisfaction for customer service workers: Hire upbeat and friendly employees Reward superior customer service Provide a positive work climate Use attitude surveys to track employee satisfaction Interaction with dissatisfied customers can increase an employee s job dissatisfaction 14

23 #2: Job Involvement The degree to which an employee identifies with his or her job, actively participates in it, and considers his or her performance to be important to his or her self-worth #3: Organisational Commitment The degree to which an employee identifies with a particular organisation and its goals and wishes to maintain membership in the organisation. There are 3 forms of Organisational Commitment: Affective commitment Employee strongly identifies with organisation and desires to remain. Continuance commitment Employee commits because he/she perceives high costs of losing organisation membership Normative commitment Employee commits due to feelings of obligation Alternatively: Affective Commitment Employee commits to the organisation because he/ she wants to. Continuance Commitment... Because employee has to. Normative Commitment... Because employee ought to. Elangovan, A. R. (2001). Causal ordering of stress, satisfaction and commitment, and intention to quit: A structural equations analysis. Leadership & Organization Development Journal, 22(4), This research study examines the causal pattern of relationships among stress, satisfaction, commitment, and turnover intentions. Results: Strong causal links: higher stress leads to lower satisfaction Strong causal links: lower satisfaction leads to lower commitment Reciprocal relationship: Lower commitment leads to greater intentions to quit which, in turn, further lowers commitment? 15

24 How To Reduce Turnover? Interventions aimed at affecting turnover need to focus more on influencing employees commitment to their organisation. Influencing employees satisfaction by changing job characteristics, pay, etc. will not directly affect turnover, but will only serve as one indirect approach for affecting organisation commitment. Cognitive Dissonance Theory Cognitive Dissonance: Any incompatibility or inconsistency between attitudes or between behaviour and attitudes. Any form of inconsistency is uncomfortable and individuals will try to reduce the dissonance. Intensity of the desire to reduce the dissonance is influenced by: The importance of the factors creating the dissonance. The degree to which an individual believes that the factors causing the dissonance are controllable. Rewards available to compensate for the dissonance 16

25 Terms of Use Some information contained within this document is copyrighted and remains in the sole ownership of the copyright holder. Intellectual resources remain in the ownership of either the original publication source, or in the ownership of the cited lecturer. This document is purely academic and provides a basic understanding of the (Managing Organisations and People) course as of the University of New South Wales. It holds no guarantee as to the correctness of the information it contains and it s relevance to the course. This document printed on the 6th of June 2014, and all efforts were made to ensure the information it contains was up to date at the time of printing. 17