MN304 - Business Leadership and

Organizational Behavior

MN304 - Business Leadership and

Organizational Behavior

Class Project:

Building an Organization

April 30, 2013

Purpose of the ProjectPurpose of the Project

• Throughout the term the lectures, exercises, assignments, student oral reports (PowerPoint presentations), and quizzes have focused primary on assuring and assessing the acquisition of knowledge and comprehension of the theories, facts and ideas.• Through this approach we satisfied the lower-order

objectives of Bloom's Taxonomy of educational goals (Bloom, et al, 1956).

• This project fulfills the next (and higher-order) objective of Blooms continuum, namely application.

• By applying the acquired knowledge students become skilled in the use of the knowledge.

The Task (taken from the assignment sheet)The Task (taken from the assignment sheet)

• The team will design (“on paper”) a hypothetical for-profit company. This essentially entails making numerous decisions. Together they determine how you wish to structure the organization, define its culture, treat the employees, etc. - while satisfying customers.

• The team will prepare a PowerPoint presentation and present their design to the class and guests.

• MOST IMPORTANTLY, THE PRESENTATION SHOULD EXPLAIN THE REASONING FOR THESE DECISION.

• Reference to theories and models is expected.

About our Organization…About our Organization…

Welcome to our ResortWelcome to our Resort

Our village is conveniently located in famous Martha's Vineyard, Massachusetts. Arguably

the top spot on the Island, our village provides an irresistible temptation for a

visit to this gorgeous destination.

Hotel FacilitiesHotel Facilities

Exquisite spaces to relax, dream and sleep. Our rooms and suites are finished to 5 star standards with state of the art

furnishings, loving details, and gorgeous amenities.

RestaurantRestaurant

Enjoy refreshing cocktails and or dinner while watching majestic yachts and sailboats navigate the harbor and Vineyard's channel entrance at

our beachfront lounge.

(Featuring sustainable seafood and the freshest produce)

SpaSpa

Our glorious and intimate Spa is a sensual haven for the senses. Find the true harmony

between body, soul & spirit at our Spa.

Night ClubNight Club

Our 9,000-square-foot nightclub brings the night to life

for our village guests and island community.

Facilities

Restaurant

Hotel(Our Centerpiece

Piece)

Night Club

Spa

“The Village”

Organizational CultureOrganizational Culture

• We understand the importance and power of organizational culture

• We continually strive to create and maintain our organizational culture based several key values consistent with running an exclusive resort:

• Respect for customers and co-workers• Client satisfaction• Open communication• Diversity • Teamwork• Friendly relations

• Artifacts of our culture:• Serene surrounding and decor• Neat but casual attire

Our culture…..Our culture…..

• Make diversity and friendliness priorities in hiring • Create and an enforce a code of behavior for

interactions with both customers and staff• Use fair and transparent performance assessments• Reward desire behaviors• Embrace participative management• Furnish free work clothing• Maintain an open door policy at all level of management• Facilitate and reward effective teamwork

Our management practices will support our culture…Our management practices will support our culture…

Organizational StructureOrganizational Structure

Characteristics of our organizational structure…Characteristics of our organizational structure…

• On the vertical dimension - flat rather then tall structure.• The advantages of a flat structure are:

• Flexibility - better able to adapt to changes• More direct and effective communication• Faster decision making – more responsive to customers needs• Greater autonomy and decision making for staff

• On the horizontal dimension – Divisional structure (modified)• The advantages of a divisional structure are:

• Clear responsibility for all activities in the division• Fast response to the external environment• Fast response to customer needs• Fosters high coordination across functions

Maintenance

Transportation

Facilities Manager

General Manager

Club Manager

Event Planning Bar Tech

HotelManager

Room Service

GuestService

Restaurant Manager

Front of House

Back of House

SpaManager

Hair Skin Nail

DJPlannerTalent

Bar1Bar2Bar 3

SoundLight

Effects

Service 1Service 2Service 3

Service 1Service 2Service 3

WaitersHosts

Hair 1Hair 2Hair 3

Head chefCooks

Bar tender

FacialWaX

NaiL 1Nail 2Nail 3

Organizational Chart

Use of TeamsUse of Teams

The senior management team…The senior management team…

• We are aware of the inherent weakness of adopting a largely divisional organizational structure – poor communication and coordination across division (hotel, spa, nightclub, and restaurant), to lessen the effect:

• The “senior management team” (the general manager, and the 5 division heads) meet each morning and as needed throughout the day.

Local teams….Local teams….

• In addition to the senior management team, numerous other teams are focused on their own areas, for example:

• Hotel• Housekeeping Team – 7AM and 2PM each day• Front Desk Team – 9AM each day• Entire staff - monthly

• Night Club• Planning and promotions teams – 11:00AM each day• Operations team – weekly and before opening.

• Restaurant• Front of the house team - weekly and before each shift• Back of the house team - weekly and before each shift

• Spa• Entire staff – weekly and before each shift

• Facilities• Entire staff – 7AM each day

• Staff level cross-functional teams:• Hotel and Spa – Cross promotions team - weekly• Facilities and managers of each division – daily

• Specialty teams are formed as needed, comprised of staff with the complementary skills needed for the task

CommunicationCommunication

Communications….Communications….

• The senior staff, group/task specific and cross-functional teams provide a strong base for inter-organization communications.

• We also understand that in a business like ours “proper” communication is important and that non-verbal communication is a large part of interpersonal communications. We tell our staff:

• Remember “channel richness”, and always use the right channel• Remember Paralanguage (voice pitch & tone) send messages• Eye contact is meaningful• Facial expressions are impactful• Be aware of personal distance• Touch is rarely appropriate (except in the Spa)• Never filter information

• All employees undergo communications training to assure effective communication with guests, co-workers and management.

Use of Job Descriptions Examples for 3 key positions

Use of Job Descriptions Examples for 3 key positions

Head ChefHead Chef

Manages the kitchen, food preparation, supplies ordering and kitchen staff for general food service and

functions.

• Supervise and coordinate activities of kitchen staff.• Inspect equipment, work areas and general supplies to ensure

conformance to established health and safety standards.• Monitor and enforce sanitation practices to ensure that

employees follow standards and regulations.• Determine production schedules and staff requirements

necessary to ensure timely delivery of services.

Personal traits required:

• Flexibility• Endurance • Detail-Oriented• Organized• Passion for Cooking

General ManagerGeneral Manager

Creates profit by managing staff; establishing and accomplishing business objectives

• Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.

• Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.

• Maintains quality service by establishing and enforcing organization standards.

• Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.

Personal traits required:

• Accomplished planner• A good teacher and listener• Uses delegation• Self-confident• Ability to motivate employees• Flexible and patient

Facilities ManagerFacilities Manager

Directs building maintenance, environmental /safety regulation compliance, grounds maintenance, custodial

support and oversees space utilization.

• Plans, directs, coordinates & budgets all operations related to facilities• Hires Staff • Coordinates daily maintenance activities • Oversees computer systems & signage for the overall facility

Personal traits required:

• Good communication skills• Customer service oriented• Cost conscious• Politically savvy• Decisive• Action oriented• People person

Were hire to using such job descriptions, but then you must motivate them……….

We will Apply Relevant Theories of Motivation

We will Apply Relevant Theories of Motivation

Theory X and Theory Y (Douglas McGregor)Theory X and Theory Y (Douglas McGregor)

We believe in Theory Y (not Theory X)•We assume that employees like work, seek responsibility, are capable of making decisions, and exercise self-direction and self-control when committed to a goal.

•That motivation, development potential, capacity for assuming responsibility, and readiness to direct behavior toward organizational goals are present in all workers

•Its management’s task to create conditions and operational methods so workers can achieve their own goals by directing efforts to organizational goals

Hierarchy of Needs Theory (Maslow)Hierarchy of Needs Theory (Maslow)

• We want our workers to be self-actualized and become what they are capable of becoming, so…

• We will help provide for their physiological and safety needs

• Create a place were their social needs are fulfilled

• Treat them in a way to foster their self-esteem

Motivation-Hygiene Theory (Herzberg)Motivation-Hygiene Theory (Herzberg)

• We understand that is intrinsic factors are related to job satisfaction, not extrinsic factors.

• Therefore we:

• Provide workers with opportunity achieve, advance and grow

• Give workers responsibility (with accountability)

• Give work recognition (when earned)

• Create meaning tasks for them

• We believe that giving our workers specific and difficult goals, with feedback, will lead to higher performance.

• Therefore all employees will:• Have daily, weekly and quarterly goals• Be provided with frequent informal feedback

from their supervisors• Have a formal quarterly goal assessment

meetings with their supervisors

Goal-Setting Theory (Edwin Locke)Goal-Setting Theory (Edwin Locke)

Reinforcement Theory (Skinner)Reinforcement Theory (Skinner)

• We believe that:• Behavior that results in pleasant consequences (reward) is likely to be repeated.• Behavior that results in unpleasant consequences (punishment) is less likely to be repeated

• Therefore in additional to semi-annual performance reviews:• Supervisors will have the power to:

• Distribute $50 gifts cards on the spot - for outstanding behavior/actions• Use their staff meeting to publicly acknowledge achievements• Assign pleasant tasks as rewards

• But also:• Reprimand as appropriate

Generally we embrace….Generally we embrace….

• Empowerment and Participation• Empowerment

• The process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of influence.

• Participation• The process of giving employees a voice in

making decisions about their work.

• Areas of Participation for Employees• Making decisions about their jobs.• Decisions about administrative matters (e.g.,

work schedules).• Participating in decision making about broader

issues of service quality.

Performance ManagementPerformance Management

Performance Appraisals ….Performance Appraisals ….

• Conducted semi-annually • Use of 360 degree input

• Self• Supervisor• Peers• Direct reports (when applicable)• Customer/vendor (as appropriate)

Performance Appraisals ActivitiesPerformance Appraisals Activities

• Review goals

• Summarize performance and accomplishments

• Specify strengths

• Specify development needs

• Create development plans

• Discuss career path

• Set new goals

Method and areas of assessment….Method and areas of assessment….

• Behaviorally anchored scales• Areas of assessment (9):

• Acceptance of supervision• Adaptability/flexibility• Communication• Composure/stability• Customer service• Interpersonal relations• Judgment• Effort• Teamwork

All areas which need development will be addressed !!!

Behaviorally Anchored Scale - ExampleBehaviorally Anchored Scale - Example

Rating Behaviors

Meets Expectation • Demonstrates understanding of internal customer concept and treats all customers with high levels of sensitivity and respect

• Always provides satisfactory and sometimes excellent customer service

• Responds to all customer requests promptly• Maintains personal accountability and ownership in customer

service rendered• Seeks feedback from customers and adjusts behavior

accordinglyExceeds Expectation • Provides excellent service to all customers, frequently going

beyond what is strictly required• Keeps informed about customers’ needs and/or wants and in

general, anticipates customers’ needs• Responds to customer requests with high degree of

sensitivity and a sense of urgency• Builds close, collaborative relationships with all customers• Motivates others to provide service excellence and leads by

example• Examines and recommends changes to processes to improve

customer serviceDoes Not Meet Expectation

• Demonstrates inadequate knowledge of internal customer concept

• Views customers as an irritation and/or a problem• Resists changes in how customers are served• Waits to be asked before responding to customers’ needs• Responds to requests with little sense of urgency

Customer Service – Demonstrates knowledge of internal and external customers; is sensitive to customer needs and expectations; anticipates needs and responds promptly and willingly to provide information, services and/or products as needed.

LeadershipLeadership

We understand the difference between leaders and managers…

We understand the difference between leaders and managers…

Leader

Have the ability to influence a group toward the achievement of goals.

Managers

Use their authority to obtain compliance from organizational members.

• Our leader is our General Manager/Chief Strategist• Our managers run the daily operations of their

respective areas

• Work within the system

• React

• Control risks

• Enforce organizational rules

• Seek and then follow direction

• Control people by pushing them in the right direction

• Coordinates efforts

• Provide instructions

• Work on the system

• Create opportunities

• Seek opportunities

• Change organizational rules

• Provide a vision to believe in and strategic alignment

• Motivate people by satisfying basic human needs

• Inspire achievement and energize people

• Coach followers, create self-leaders and empower them

Each understand their roles….Each understand their roles….

Leaders Managers

In conclusion….In conclusion….

• That is how we wish to run our organization !!!

• It takes a great deal for an organization to be successful• A clear vision• A sound strategy • A good business model• etc….

• It also takes careful consideration of many aspects of internal operations

• In this class we have studied and discussed many of those elements

• This project gave us a opportunity to see now pieces work together

• Thank for coming, we hope you enjoyed the presentation

• And a special call out to Professor Fontaine, thanks for everything !!!