Post on 13-Jan-2016
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BA 351BA 351Managing Managing
OrganizationOrganizationss
Management Management and its and its
EvolutionEvolution
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How many students are How many students are enrolled in this class?enrolled in this class?
A)A) 1 - 501 - 50
B)B) 51 - 10051 - 100
C)C) 101 - 125101 - 125
D)D) 126+126+
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Mike CieriMike Cieri
Office: 338 BexellOffice: 338 Bexell
Hours: Monday, & Wednesday 1:00 – Hours: Monday, & Wednesday 1:00 – 1:50 & by appointment1:50 & by appointment
E-mail:E-mail: mike.cieri@bus.oregonstate.edumike.cieri@bus.oregonstate.edu
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Communication TriangleCommunication Triangle
ReceiverFeedback
600 w
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Sender150 words per minute
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Organizational StructureOrganizational Structure
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The performance of organizations depends to a large extent on how their resources are allocated and their ability to adapt to changing conditions.
Successful organizations know how to manage people and resources efficiently and effectively to accomplish organizational goals and to keep those goals in tune with changes in the external environment.
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Management in the New Management in the New MillenniumMillennium A firm can be A firm can be efficientefficient by making by making
the best use of people, money, the best use of people, money, physical plant, and technology.physical plant, and technology.
It is It is ineffectiveineffective if its goals do not if its goals do not provide a sustained competitive provide a sustained competitive advantage.advantage.
A firm with excellent goals would A firm with excellent goals would fail if it hired the wrong people, fail if it hired the wrong people, lost key contributors, relied on lost key contributors, relied on outdated technology, and made outdated technology, and made poor investment decisions.poor investment decisions.
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Strategic Managers
Tactical Managers
Operational Managers
Levels of Management
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Evolution Evolution of of
LeadershLeadershipip
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The Evolution of The Evolution of Managerial PracticesManagerial Practices
COORDINATIONCOORDINATION
COOPERATIONCOOPERATION
CONTROLCONTROL
COMMITMENTCOMMITMENT
COLLABORATIONCOLLABORATION
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The Evolution of The Evolution of Managerial ThoughtManagerial Thought
MILITARISTICMILITARISTIC400400
INDUSTRIAL INDUSTRIAL REVOLUTIONREVOLUTION18501850
SCIENTIFIC SCIENTIFIC MANAGEMENTMANAGEMENT19001900
BUREAUCRACYBUREAUCRACY19101910
TEAM-BASEDTEAM-BASED20002000
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MilitaristicMilitaristic700 AD700 AD
Executive OfficersExecutive OfficersThe Generals, “the The Generals, “the brass” brass”
Staff OfficersStaff OfficersStay behind the front Stay behind the front line, help line managersline, help line managers
Line / Field OfficersLine / Field OfficersGo to battle, “see Go to battle, “see action”action”
GruntsGruntsUninformed, “follow Uninformed, “follow orders”orders”
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MilitaristicMilitaristic700 AD700 AD
When to use the militaristic model:When to use the militaristic model:
Works well in a crisisWorks well in a crisis Clear lines of authorityClear lines of authority Creates order without freedomCreates order without freedom Needs an enemy or common goal Needs an enemy or common goal
to keep focusedto keep focused No discretion, do as toldNo discretion, do as told
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Machine production Machine production People are sophisticated People are sophisticated
machinesmachines Increased productivityIncreased productivity Worker specializationWorker specialization Use rules and Use rules and
punishment to controlpunishment to control Rise of labor movementRise of labor movement
Industrial RevolutionIndustrial Revolution18501850
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Scientific ManagementScientific Management19001900
Fredrick Winslow TaylorFredrick Winslow Taylor Use scientific techniques Use scientific techniques
and methods to improve and methods to improve productionproduction
Implement Time & Implement Time & Motion Motion
People are extensions of People are extensions of machinesmachines
““Idiot proof” tasks make Idiot proof” tasks make people expendablepeople expendable
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Form bureaus / departmentsForm bureaus / departments Define roles clearlyDefine roles clearly Maximize efficiencyMaximize efficiency Resist change, protect Resist change, protect
status quostatus quo Seek “more”Seek “more” Making each department Making each department
efficient worsens the whole efficient worsens the whole organization (sub-optimize)organization (sub-optimize)
Age of BureaucracyAge of Bureaucracy19101910
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Hawthorne Electric WorksHawthorne Electric Works Lighting & Productivity Lighting & Productivity
StudiesStudies Increased lighting to Increased lighting to
improve productivityimprove productivity Management:Management:
-- monitors experimental groupmonitors experimental group-- ignores regular employeesignores regular employees
Expectations impact performanceExpectations impact performance
Human Relations EraHuman Relations Era19201920
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Human Relations EraHuman Relations Era19201920
The “Hawthorne effect” was named after an attempt to improve morale and productivity at a manufacturing plant in Hawthorne, Illinois.
Industrial psychologists provided improved lighting, and it improved employee productivity. So did dimming the lighting. So did shortening the workday, and lengthening the workday.
Workers were actually responding to “positive attention and interaction,” not specific policies.
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Time
Low
High
Performance
Reward Behavior
Ignore / Punish Behavior
The “Hawthorne Effect”Attention + Expectations = Increased Performance
Human Relations EraHuman Relations Era19201920
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FormalFormal RankRank Need to knowNeed to know Reprimands Reprimands
youyou Motive is FearMotive is Fear
InformalInformal No rankNo rank Informs YouInforms You Protects youProtects you Motive is FriendshipMotive is Friendship
Group DynamicsGroup Dynamics19301930
Every company operates with two Every company operates with two distinctly different systems:distinctly different systems:
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Low
High
Low High
Group DynamicsGroup Dynamics19301930
Productivity
Cohesion
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Work SimplificationWork Simplification19401940
Pre-WWIIPre-WWII Women in workplaceWomen in workplace Work naturally as teamWork naturally as team Cross train in processesCross train in processes Teach quality statisticsTeach quality statistics Goal is “Zero Defects”Goal is “Zero Defects” Weekly communicationWeekly communication
““When 21 million men left When 21 million men left the workforce, productivity went the workforce, productivity went up!!!”up!!!”
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Work SimplificationWork Simplification19401940
High performing team-based High performing team-based systemssystems
Form teams, assign to work processForm teams, assign to work process Cross train everyone, up and down Cross train everyone, up and down
streamstream Set clear commonly shared goalsSet clear commonly shared goals Minimize rank, empower everyoneMinimize rank, empower everyone Statistical workflow techniquesStatistical workflow techniques Learning instead of blamingLearning instead of blaming Group norms, culture as powerful Group norms, culture as powerful
determiner of human behavior determiner of human behavior
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Work SimplificationWork Simplification19451945
After WWII, which model did we After WWII, which model did we adopt?adopt?
Militaristic?Militaristic?
oror
High Performing Work Teams?High Performing Work Teams?
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Deming goes to JapanDeming goes to Japan19501950
“Adapt the tools of total quality and you can win any market you want in the world.”
W. Edwards Deming,Quality Innovation Leader
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Matrix ManagementMatrix Management19601960
Demand for flexible Demand for flexible structuresstructures::
Blended “solid line” and Blended “solid line” and “dotted line”“dotted line”
Flexible & adaptiveFlexible & adaptive
Invites conflictInvites conflict
Creates trianglesCreates triangles
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Quality CirclesQuality Circles19701970
Voluntary groupsVoluntary groups
Pick problems with qualityPick problems with quality
Use tools to analyzeUse tools to analyze
Recommend changes to Recommend changes to managementmanagement
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Japanese ManagementJapanese Management(originally developed in the USA)(originally developed in the USA)
INPUTS OUTPUTS
Total Quality Total Quality ManagementManagement
19801980
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1Flow ChartIs a pictorial representation showing all the steps of the Process.
VariablVariablee
FrequencyFrequency
AA
BB
CC
DD
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VA
RIA
BL
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2ChecksheetMechanism for identifying variables & counting their frequency of occurrence.
3Run ChartUsed to monitor a Process to see if the Trend is changing.
FR
EQ
UE
NC
Y
VARIABLE
4Pareto ChartBar graph that helps determine which problems to solve and in what order.
FR
EQ
UE
NC
Y
VARIABLE
5HistogramTakes measurement data and reveals the variation a Process has within it.
VA
RIA
BL
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VARIABLE 1
6Scatter ChartUsed to study the possible relationship between one variable and another.
7Cause & Effect “Fishbone” shows relationship between “Effect” and possible influencing “Causes”.
VA
RIA
BL
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TIME
UCL
X
LCL
8Control ChartA Run Chart with Statistical Upper and Lower Limits of the Process.
Tools of Quality Tools of Quality ImprovementImprovement
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High Performing Work High Performing Work SystemSystem
19901990Horizontal Horizontal
OrganizationOrganization Design business Design business
processprocess Quality as a processQuality as a process Educate everyone in Educate everyone in
basic statisticsbasic statistics Assign Process Assign Process
OwnersOwners Black Belts / Green Black Belts / Green
BeltsBelts
Dept. A
Function A
Dept. B Dept. C Dept. D
BOSS
Function B
Function C
Function D
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High Performing Work High Performing Work System System
19901990
TeamCommittee
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High Performing Work High Performing Work Teams Teams
19901990
Form teams Aligned to ProcessesForm teams Aligned to Processes::
Clear Mission / Vision / GoalsClear Mission / Vision / Goals Big Hairy Audacious Goals - BHAGBig Hairy Audacious Goals - BHAG Map the value stream / processesMap the value stream / processes Information at the sourceInformation at the source Sig Sigma / Lean ProcessesSig Sigma / Lean Processes
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Lean Organization Lean Organization 20002000
Dept. A
FunctionA
Dept. B Dept. C Dept. D
BOSS
Function B
Function C
Function D
Business Processes
CUSTOMER
Dept. A
FunctionA
Dept. B Dept. C Dept. D
BOSS
Function B
Function C
Function D
Business ProcessesBusiness Processes
CUSTOMER
CUSTOMER
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Create Business ResultsCreate Business Results
Scorecard of Performance IndicatorsScorecard of Performance Indicators• Profit / EBITA Profit / EBITA • Profit by customer segmentProfit by customer segment• Gross margin by product Gross margin by product • Retention of key staff with Retention of key staff with
replacements in placereplacements in place• Training hours per employeeTraining hours per employee• Warranty costs by product Warranty costs by product
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The Evolution of The Evolution of ManagementManagement
Building a Mission-Centered,Building a Mission-Centered,
High Performance High Performance
Teambased Enterprise Teambased Enterprise
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Physical Needs
Need for Security
Need for Social Relations
Need for Self Esteem
Self-Actualization
Maslow’s Hierarchy of Needs
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“Video
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Todd McFarlane
Answer these Qs:1.Considering the competitive environment, McFarlane specifically address some things that his competitors were doing that he wanted to do differently – what are these? 2.How does this relate to Deming’s idea of TQM?3.Consider what you know about Maslow’s theory. Based on this perspective, what needs were motivating McFarlane in his decision to start his own company?
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Yes or No
Do you think starting one’s business Do you think starting one’s business is the only way to achieve higher-is the only way to achieve higher-level needs? level needs?