041_MANAJEMEN_Meija_495

Characteristics and Types of
Organizational Culture

Cultural Uniformity versus
Heterogeneity

Strong versus Weak
Cultures

Culture versus
Formalization

National versus
Organizational Culture

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Characteristics and Types of
Organizational Culture (continued)

Types: Traditional Control or
Employee Involvement

Traditional control

 emphasizes the chain of command
 relies on top-down control and orders

Employee involvement and

 emphasizes participation
involvement

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Four Types of Culture Classification

Baseball team culture--rapidly
changing environment

Club culture--seeks loyal,
committed people

Academy culture--hires experts
who are willing to make a slow
steady climb up a ladder

Fortress culture--focused on
surviving and reversing sagging
fortunes

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Competing Values Framework

Based on two dimensions: focus and control

 Focus--whether the primary attention of the
organization is directed toward internal dynamics or
directed outward toward the external environment

Control--the extent to which the organization is
flexible or fixed in how it coordinates and controls
activities

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Types of Change

Planned Change--change that is
anticipated and allows for advanced
preparation

Dynamic Change--change that is
ongoing or happens so quickly that
the impact on the organization cannot
be anticipated and specific
preparations cannot be made

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Forces for Change:
Environmental Forces

Put pressure on a firm’s relationships with
customers, suppliers, and employees.

Environmental forces include:

Technology
Market forces
Political and regulatory agencies and laws
Social trends

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Forces for Change: Internal Forces

Arise from events within the
company.

May originate with top
executives and managers and
travel in a top-down direction.

May originate with front-line
employees or labor unions and
travel in a bottom-up direction.

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Resistance to Change

Self-Interest

Cultures that Value Lack of Trust and
Tradition Understanding

Different Perspectives and Uncertainty
Goals

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Models of Organizational Change:
The Star Model

The Star Model: Five Points

Types of change-evolutionary or
transformational

Structure
Reward system
Processes
People

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Lewin’s Three-Step Model of
Organizational Change

Unfreezing--melting away
resistance

Change--departure from
the status quo

Refreezing--change
becomes routine

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Lewin’s Force Field Analysis Model

Increase driving forces that
drive change

Reduce restraining forces
that resist change

or do both

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Force-field Model of Change

Desired
state

Restraining forces

Status quo

Driving forces Time

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Implementing Organizational Change

Top-down Change
Change Agents

McGraw-Hill Bottom-up Change

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Eight Steps to a Planned
Organizational Change

 Establish a sense of  Empower others to act

urgency. on the vision.

 Form a powerful  Plan and create short-

coalition of supporters of term wins.

change.  Consolidate

 Create a vision of change. improvements and

 Communicate the vision produce still more
of change. change.

 Institutionalize new

approaches.

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Tactics for Introducing Change

Communication and Employee Involvement
Education

Negotiation

Coercion

Top-Management Support

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Applications: Management is Everyone’s
Business—For the Manager

 Certain types of changes routinely provoke strong employee
resistance:
 Changes that affect skill requirements.
 Changes that represent economic or status loss.
 Changes that involve disruption of social relationships.

 By being aware of the sources of resistance, managers can
better apply tactics to make the changes more palatable for
employees.

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Applications: Management is Everyone’s
Business—For Managing Teams

Teams can help test the waters for a proposed
change.

Various employee teams can serve as focus groups
in order to find ways to make a change in policy
more acceptable to employees.

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Applications: Management is Everyone’s
Business—For Individuals

Learning the specifics about the company culture
can help you determine your fit with the
organization and the possibility of succeeding.

Ask questions and gather information during the
recruiting process to get a handle on the company
culture and assess whether you will function
comfortably in it.

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Chapter

5

Managing the Planning Process

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Learning Objectives

After reading this chapter, you should be able to:

 To take advantage of the benefits of planning at every
level of the organization

 Recognize major planning pitfalls and develop quality
planning programs

 Balance formal planning with opportunistic planning
 Establish objectives to drive the entire planning process
 Prepare action plans at the strategic, tactical, and

operational levels
 Learn how to implement plans successfully

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What is planning?

The management function that:

 assesses the management environment to set future
objectives; and

 maps out actions necessary to achieve those objectives.

Planned actions require careful resource allocation.

Plans must be accompanied by implementation
guidelines.

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McGraw-Hill Key Elements to a Plan

Objectives

Actions

Resource
Allocation

Implementation
Guidelines

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Benefits of Planning

Develop a sense of direction and purpose

Identifying the factors that affect the
organization

Assessment of external forces

Encouraging participation

Coordination of efforts

Establishment of priorities

Focusing attention on different

time horizons

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Benefits of planning (continued)

Understanding circumstances contributing to
past success or failure

Assurance of the availability of adequate
resources

Establishing performance standards

Supporting organizational control systems
Developing ―what if‖ scenarios

Management development

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The Pitfalls of Planning

Poor forecasts of future
conditions

Plans imposed from above
Planning as a self-contained

activity
Extensive bureaucratization
Inflexible adherence to objectives

and processes

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Keys to Successful Planning

Involving different organizational levels
Using both numerical and judgmental

methods
Viewing planning as continuous and capable

of adapting to change
Avoiding paralysis of the analysis
Concentrating on a manageable set of issues

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Formal Planning and
Opportunistic Planning

Formal planning Opportunistic
systems are designed planning involves:
to:
Programmatic actions
Deliberately identify triggered by
objectives; and to unforeseen
circumstances.
Structure the major
tasks of the It can coexist with
organization to formal planning and
accomplish them. can help the formal
plan function more
smoothly.

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The Formal Planning
Process Involves

Setting objectives
Charting a course of

action to meet the
objectives
Implementation

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Setting Objectives

Objectives are more general at the top and become
more specific at the lower level

Overall objectives of the organization reflect its
mission

Objectives should be specific and measurable.
Objectives should be challenging and achievable
Objectives should specify a timetable or deadline

for accomplishment.
Objectives should be prioritized.

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Key Steps of the MBO Cycle

Insert Figure 5.2 here

Charting a Course of Action

Strategic Action Plans
Tactical Action Plans

McGraw-Hill Operational Action Plans

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To be effective, a strategic action plan
should meet the following criteria:

Proactivity – The degree to which the strategic
action plan takes a long-term view of the future.

Congruency – The extent to which the strategic
action plan fits with organizational characteristics
and the external environment.

Synergy – The integration of the efforts of various
organizational subunits to better accomplish
corporate-wide business objectives.

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Two important aspects of
tactical action plans:

 Division of Labor – The formal assignment of
authority and responsibility to job holders.

 Helps ensure that tasks of jobholders are appropriate
for accomplishing the department’s tactical action
plan, which in turn should support the organization’s
strategic action plan.

 Budgeting – Controlling and allocating funds.

 Variable budgeting
 Moving budgeting

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A Typical Operating System

Control

Inputs Transformation Outcome
Feedback Loop
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© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Benefits of Operational Planning

The opportunity to use feedback for continued
incremental learning.

The ability to visualize alternative types of
operations – i.e., alternative ways to use resources
to create the product or service.

The ability to predict the effects of modifications in
operations on the efficiency of operations.

The ability to evaluate the effectiveness of
operations.

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Implementation

Means of implementation:

Authority
Persuasion
Policy
Feedback mechanism

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A Six-Stage Approach to Facilitate
Organizational Problem Solving

 Identify performance gaps.
 Identify tasks and work processes necessary for

accomplishing the plan.
 Check for organizational congruence.
 If any congruencies or inconsistencies are found,

intervene to create alignment in order to
effectively implement the plan.
 Execute the plan.
 Learn from the consequences.

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Mechanisms to Deal with
Organizational Change

Deal with power and
politics

Reduce individual
anxiety and
resistance

Maintaining control
during the transition
period

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Applications: Management is Everyone’s
Business—For the Manager

Managers are expected to collaborate with employees
to:

 Define objectives for their unit.
 Clearly communicate the relative importance of those

objectives.

Managers need to develop a plan to accomplish the
objectives and lay out the implementation steps.

A good planning process:

 Smoothes the way change is conducted.
 Gives employees a sense of continuity.

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Applications: Management is Everyone’s
Business—For Managing Teams

Teams require a great deal of coordination and
integration to function effectively.

A sound planning process can help teams:

 Define what they are trying to accomplish.
 Develop mechanisms to achieve objectives in a more

efficient manner.

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Applications: Management is Everyone’s
Business—For Individuals

Efficient time allocation requires setting personal
objectives and determining the best way to
accomplish them.

 It is important to:

 periodically reassess objectives,
 redefining or changing them as needed, and
 adjusting implementation plans accordingly.

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Chapter

6

Decision Making

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Learning Objectives

After reading this chapter, you should be able to:

 Know how to implement the six stages of management
decision making.

 Apply the criteria of quality and acceptance to a decision.

 Recognize the characteristics of management decisions:
programmability, uncertainty, risk, conflict, and decision
scope.

 Reap the advantages and avoid the disadvantages of
group decision making.

 Develop the skill of time management to allow adequate
time to make decisions.

 Know when to delegate, and do so wisely.

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Introduction

 Making decisions under conditions of risk and
uncertainty is one of the most important activities
that managers engage in.

 Generally, there is a lack of information and a
limited amount of time available to make the
decision.

 Procrastinating and not making a decision
sometimes has greater risk than making it.

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Decision Making

 The process of identifying
problems and opportunities and
resolving them.

 Management decisions can be
made by managers, teams, or
individual employees, depending
on:

 The scope of the decision, and
 The design and structure of the

organization.

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Characteristics of Management
Decision Making

Programmability

Decision Scope Uncertainty

Conflict Risk

Crisis

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Characteristics of Management
Decision Making (Cont)

Programmability Programmed Decisions
Non-programmed Decisions

Uncertainty Certainty
Uncertainty

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Characteristics of Management
Decision Making (Cont)

Risk – occurs when the outcome of
management decision is uncertain

 Risk has both positive and negative aspects
 Decision environment for risk vary depending upon company

culture and size

Conflict – occurs when there are opposing goals,
scares resources, or differences in priorities

Crisis – a situation that involves small amounts of
time to make a decision that can impact the
survival of the organization

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