Strategic Pressures

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Strategic Pressures

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  • 1Business Administration &Economics Department

    CBE6103Managing People in

    OrganizationsFall, 2014

    General Information

    George, J.M. and Jones, G.R. (2011)Understanding and Managing OrganizationalBehavior. Sixth Edition. London: Pearson

  • 2Course Objectives

    Critical exploration of core concepts incurrent organisational theory

    Comprehensive analysis of the newmanagerial implications and practices

    Analysis of the recent developments inHRM practices and its changing context

    Critical analysis of structural changes inorgs. of different sizes & sectors

    Course Outline

    Strategic pressures driving behaviour HR Structuring the organisation & the structural

    change process Changing culture of organisations Power & conflict in organisations Performance management process Emerging managerial and HRM issues

  • 3What is an organisation?

    Group of 2 or more individuals Consciously co-ordinated unit Functions on a continual basis to achieve

    common goals

    What is OB

    Field specialising in the study of humanbehaviour in organisations what makes employee more productive what makes employees more satisfied in

    their jobs how can we find the best way to organise

    an employees work

  • 4What is a manager?What do managers do?

    Manager: someone who achieves goalsthrough the efforts of others

    Plan: define goals, strategize, co-ordinate etc. Organise: determine tasks, job design, determine

    authority, where decisions are made etc.

    Lead: motivate, direct, communicate, resolve etc.to get members to work toward a goal

    Control: monitor/correct actions--meet goals

    Strategic Pressures DrivingDevelopments in Managing

    Behaviour & Human Resources

  • 5Views of Loyalty: (Business Week)

    77%60%

    2%

    5%

    21%35%

    0%10%20%30%40%50%60%70%80%90%

    100%

    Company loyalty toemployee

    Employee loyalty tocompany

    More loyal

    Same

    Less loyal than fiveyears ago

    Evolution in How Organizations Have ViewedTheir Employees

    Everyone is the same.

    There are differences.

    Differences are good.

  • 6Overview of the OB Model

    Individual Level

    Group Level

    Organisation Systems Level

    Time

    Level III

    Level II

    Level I

    TheDependentVariables

    Productivity

    Absenteeism

    Job Satisfaction

    OrganisationalCitizenship

    Turnover

  • 7Independent VariablesIndividual Group Organisation

    Biographical Traits

    Personality

    Values & Attitudes

    Ability

    Perception

    Motivation

    Individual Learning

    Decision Making

    Communication

    Other Groups

    Conflict

    Power & Politics

    Group Structure

    Work Teams

    Leadership

    Decision Making

    Culture

    Structure

    Design

    Technology

    Work Processes

    Selection Processes

    Training Programs

    Appraisal Practices

    Forces driving developments

    Technological - Information Technology Legislative / Political Downsizing / Outsourcing Competition -- Globalisation Socio-Demographic & Nature of the Workforce Ethics & Social Responsibility

  • 8Important Note

    Forces pressuring change are not all bad There is shifting in the nature of business Jobs are being lost but also created (e.g.,

    formation of new markets)

    Technological Forces --Information Technology

    With advances in IT orgs. generate moreinfo, seek more info, & send info morequickly

    Can respond quicker to customers, otherorgs, and competitors

    Can alter production schedules more quickly Use of the web and intra/inter net

  • 9IT (contd.)

    Continuous improvement e.g., 99.9% efficiency at the U.S. Postal

    Service means losing 2,000 packages perhour; 2 plane crashes per day at OHare

    Need for new skills base and training ona continual basis to keep up

    IT impacts where business can be done-- job design (e.g., on the road, at home,or around the world)

    Legislative / Political Change

    Countries are more open to foreigninvestment -- movement of labor & capital

    New markets are opening (e.g., SovietUnion, Asia)

    Formation of the EU and its standardizedrules and regulations

    Deregulation (e.g., airlines, telephone)

  • 10

    Downsizing & Outsourcing

    A planned reduction in workforce aimedat reducing the size or staff and middlemanagement to reduce costs

    Org becomes more effective withoutincreasing costs

    Downsizing has been referred to as jobshifting -- in the U.S. increases inoverall employment have offset this

    Competition / Globalisation

    Competitors can now come from acrossthe street or from around the world

    Orgs need to defend against theirtraditional competitors as well asentrepreneurial firms including those onthe internet

    Interest rate and foreign currencyfluctuations

  • 11

    Socio-demographic Different types of people found within an

    organisation: Generation X / Y Senior Citizens Baby Boomers (1945 - 1960)

    Demand different training, benefits,work-place arrangements, rewardsystems etc. based on these changes

    Socio-demographic (contd.)

    Marriage is being delayed; 50% end indivorce increasing no. of single parent households

    Increase in university/college attendance

  • 12

    Workforce diversity

    Similarities/differences in characteristics: age race gender disabilities ethnic heritage sexual orientation

    Regional (EU) & Global diversity In many countries minorities are the

    fastest-growing segment of the populationand workforce

    Workforce diversity (contd.)

    Increase in professionals & knowledgeworkers

    Many new workforce entrants withlimited or inadequate skill sets

  • 13

    Ethics & Social Responsibility

    Ethics: individual beliefs about what isright and wrong

    Social Responsibility: obligation toprotect and contribute to the socialenvironment in which it operates

    Examples: obligations to clean up theenvironment (McDonalds); respond toclient needs (e.g., J&J -- Tylenol scare)

    Changing employee contract

    Fewer jobs for life (downsizing) Fewer situations of a family working in a

    particular org Weaker bond between org. & employee William Bridges: talks about no more full-

    time work; only contract & part-time rentan employee

  • 14

    Some challenges & opportunities formanaging behaviour & HR

    Improving quality and productivity Improving people skills Managing workforce diversity Responding to globalisation Empowering people Stimulating change and innovation Coping with temporariness Declining employee loyalty Improving ethical behaviour