Survey
* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project
Download Strategic Management
Document related concepts
no text concepts found
Transcript
Podklad pro vizualizaci a komunikaci strategie od pořadatele administrátorovi, dobrovolníkovi a koordinátorovi – toto jsou postupy. Dokumentaci dle ISO 9000/2000 Osoby PROCES plánování Zavádění Kontrola OTEVŘE- CITLIVOST prognóz: Progn. + Plan: STABILITA NOST Experti od trhu a dodavatele PRÚZKUMU A Kapitál Administra- Konkurenti od výrobků, výrobců, distributorů, FINANCOVÁNÍ (dostupnost) ce prodejců - Aperture regiony Kurzy prodejců, Zisk korporace Odhady prodejů od výzkumníků a projektového a Zaměstnání schopnost z obchodních publikací vizuálního řízení, prodat Náklady: mzdové, nájmu, s ohledem na administrování zvolenou cestu komercionalizace – Aperture tabulky DISCIINVESTICE do růstu: Offensive Mang. NEINVESPLINA Požadavky (výrobního) procesu, volby KOMERCIOTIČNÍ růst: koordinace zařízení a distribuce. NALIZACE Družstva, divize Prověřit případné spojence Projektování IS franšízy, appearance Prověřit případné donory pro zajištění Joint image Aperture zařízení návaznosti Venture zařízení a Nákup, distribuce. půjčka, Příprava smluv a leasing jednání MOC INFORMACE – primární: Market Manag. CENA, pořadatel Vyhodnotit: Co máme a jak reagovat? ZPRACOVÁNÍ DOKUpodnik Analysovat: Jaké modifikace jsou nutné? výzkumu: MENTACE bargaining Zpracovat technické náležitosti (dokumentace) Podpora prodejů a PROCES: rozhodnutí a propagace Kapitál STRATEGIE + sekundární: Struktura trhu, Zvláštní trhy Sklad cílový, velikost, mix, konkurenti, trendy Události Obchod Aperture údržba Výstavy HODNOTA VÝZKUM – Aperture realitka TRANSSELEKCE / Dobrovolní Sekundární výzkum: Co je zajímavého – FORMACE: SUBSTITUk téma? Prověření komoditních, sektorových, Senory tests of: CE Výrobek vývojových informací je počátkem. Výstupem Zprostředkující Dostupnost Schopnost je volba výrobku, prověření zvládnutelnosti technologie kapitálu vyrobit investice, výroby a trhu Znalosti, Appearance/ Primární výzkum: Jsou experti nadšení? dovednosti capacity to Příprava dotazníků na ověření názorů a Zdraví, produce požadavků spotřebitelé, distributorů (MO) a plánování, Investice do zákazníků. Kolik, kde, komu a kdo bude vzdělávání, appearance distribuovat dotazníky? služby Feasibility: Je každý účastník procesů schopen zvládnout technologii a finanční náročnost? Vývoj výrobku: Objednat laboratoře, navrhnout testované přísady, vlastnosti pro spotřebitele a distributory, konkurenční výrobky. Navrhnout, provést, vyhodnotit a analyzovat – viz výše Formulace výrobku pro cílové spotřebitele 1. Vstupy: Natřídit otázky do skupin pro generování testu PROMĚNNÉ: Vnímání podnětů ve fázi plánování: objekt PODNĚTY, VNÍMÁNÍ a SLOVO: Otázky kvalitativního původu na ”vnímavost” k podnětům: – Disciplinované vyčekání si povýšení a aplikace defensivního řízení – Sebeobětování workoholica (ignorované nebo popletené metody nebo vjemy) – Sebehodnocení, timemanagement, nástroje jakosti a projektový cyklus achievera – Projektové řízení a vznik týmu OMEZUJÍCÍ PODMÍNKY: Ochota přebírat a disciplinovaně provádět – ve fázi zavádění: objekt ODKAZY, STANDARDY: (Otázky na celostní vnímání procesů - téma (viz tabulka strategického plánování, projektový cyklus a řízení a 5. R.p.), přes cíle (růstové, strategické, osobní a preventivní) a akce (kontroly) (Berger přes internet)). - P-Z-K, - DEF – OF: Admin – garant – koordinátor – pořadatel, Produkt – prevence (zájem na osbě – ostatních) - ISO 9000/2000, moc jednotlivce nad okolím a historie Dodělat odkazy na literaturu u problémů, které jsou jasné a nejsou zde rozebrány Kontrolní otázky na neprobíraná témata: - sebehodnocení - timemanagement 2. Změna struktury: Vylučování nestandardních (lživých) a nežádoucích ( škodlivých) prvků ŘEŠENÍ NE/KORELUJE: Fáze kontrola: Závěrečný dovednostní test: objekt MOTIVY (OSOBNOSTNÍ TRANSFORMACE, BARGAINING POWER): Ad osobnostní transformace: Motivační aspekty zapracovat do scénáře prokreslujícího přechody mezi rolemi osobností: - garanta, který k problému má navrhnout osnovu, cíle a metody koordinátora, který má k problému přiřadit program podle priorit pořadatele, který má k obecnému problému přiřadit místní zdroje (Aperture) pro řešení Ad Image: Seznam otázek natřídit do variant pro průběžné testy a závěrečný znalostní test: OBJEKT – OTÁZKY -- Ad produkt: Otázky s alternativními odpověďmi – odchylka, naměřený a rovnovážný stav chování – LZ a definice z ManagMsc – pro přímý přístup a pro dosahování žádoucího poměru výstupů 3. Dosahování konkurenčního předstihu Měření Appearance, Bargaining power, Capability to Deliver: Podle Yt a yt vyhledávat a vyřazovat nebo měnit prvky, které nemohou dosahovat dostatečného Y– opakování kroků 1-3, konkrétně je možné použít: - výsledky minulých hodnocení - výsledky srovnatelných konkurentů - připravenost na alternativy řešení (DEF, OF) - připravenost na transformaci – LZ – přímý přístup v rámci http://web.quick.cz/linhart.zdenek/partner - porovnání pořadí prvků z minula, paralelně a dle připravenosti alternativ a transformací - simulace účinků nově zařazených prvků dle potřeb celku - úkolování v přípravných procesech - schvalování převzatých úkolů (MBO), stanovených dle celostního působení (dis/konjunkce) - 4. Přechod na problematiku Image a osobnostních transformací Lectures: .............................................................................................................................................................. 6 Exercises: ............................................................................................................................................................ 6 1. Evolution of management tendencies: Resource, Product, Improvement, Responsibility Quality Management Systems (ISO 9000/2000) ............................................................................................................... 7 ISO 9000/2000 Concept and Historical background ........................................................................................... 7 Resources management ................................................................................................................................... 7 Product/Demand management ........................................................................................................................ 7 Management Responsibility ............................................................................................................................ 7 Improvement Management ............................................................................................................................. 8 Development of quality systems ISO 9000 ..................................................................................................... 8 Total Quality Management for C.N.C. ................................................................................................................ 9 Origins of the quality concept ......................................................................................................................... 9 Definitions and dimensions of quality........................................................................................................... 10 Quality dimensions: ...................................................................................................................................... 10 Semester Project Assignment: ........................................................................................................................... 12 Synergy Effect Generated by Individual ........................................................................................................... 12 Complexity .................................................................................................................................................... 12 Case Study: Observations of Transforming East European Economies and Claims for Policy Quality Control .......................................................................................................................................................... 12 Assignment: How will you create a knowledge of unclear concepts? .......................................................... 13 Transformation Brought by Quality Discovery and Delivery ....................................................................... 13 Case Study: EU enlargement case ................................................................................................................. 14 Assignment: How you will manage the diversity in your project? ............................................................... 14 Selection of Reworded .................................................................................................................................. 14 Pitfalls ........................................................................................................................................................... 15 Assignment: How will you prevent negative reactions of people influenced by your project? What is your reword and how will you ask for? ................................................................................................................. 15 Summary ........................................................................................................................................................... 15 2. Strategic management: Diversity, Culture, Change, Structure, Planning ............................................. 16 Diversity ............................................................................................................................................................ 16 Definitions:.................................................................................................................................................... 16 Questions: ..................................................................................................................................................... 17 Culture and Change ........................................................................................................................................... 17 Definitions ..................................................................................................................................................... 17 Culture: Management in Virtual Organizations ................................................................................................ 17 Questions ....................................................................................................................................................... 20 Organisational Structure .................................................................................................................................... 20 Definitions ..................................................................................................................................................... 20 Questions ....................................................................................................................................................... 21 Strategic Management ....................................................................................................................................... 21 Definitions ..................................................................................................................................................... 21 Questions ....................................................................................................................................................... 22 Case Study: What needs to be planned in C.N.C. ......................................................................................... 22 Strategy Formulation ......................................................................................................................................... 23 How to distinguish a short and long term planning importance for strategy formulation? ........................... 23 Strategic planning ......................................................................................................................................... 24 Mission Statement ......................................................................................................................................... 25 Environmental Analysis: Objectives Discovery ............................................................................................ 25 Opportunities and threats .............................................................................................................................. 26 Internal resources .......................................................................................................................................... 26 Objectives...................................................................................................................................................... 26 Values ........................................................................................................................................................... 27 Who does the planning? ................................................................................................................................ 27 Summary of Discussions ............................................................................................................................... 28 Organisation and implementation ..................................................................................................................... 29 Elements of implementation.......................................................................................................................... 29 Management by Objectives (MBO) .............................................................................................................. 30 Who implements? ......................................................................................................................................... 31 Summary from discussions ........................................................................................................................... 32 Control .............................................................................................................................................................. 33 Summary from Discussions .......................................................................................................................... 33 3. Production and Service Resource Oriented Company: Diagnostics Approach ......................................... 33 Definitions ..................................................................................................................................................... 34 Important ..................................................................................................................................................... 35 Quality Systems for Service Organisations ................................................................................................... 36 Measuring service quality ............................................................................................................................. 36 Regional Management Projects:........................................................................................................................ 38 Assignment: Supplying Conventional Organisations ........................................................................................ 40 Assignment II: Supplying C.N.Cs – co-operatives / networks / corporations – further abbreviation C.N.C. is used ................................................................................................................................................................... 40 Assignment: Management structures and tasks ................................................................................................. 41 Summary ........................................................................................................................................................... 41 4. Information Processing in Marketing Management: ................................................................................... 42 Definitions ..................................................................................................................................................... 42 Information Management: operations, work-flow, projecting .......................................................................... 43 Definitions ..................................................................................................................................................... 43 Role of Information Technology ................................................................................................................... 43 Exercises: The Uses of Information Technology .............................................................................................. 44 Computer technology - C.N.C....................................................................................................................... 44 Management information systems: ............................................................................................................... 44 4. Tasks: Leading, Personnel Management, Marketing, Operations Management .................................. 45 Leadership ......................................................................................................................................................... 45 Definitions ......................................................................................................................................................... 46 Leadership styles ........................................................................................................................................... 46 Personnel Management Case: Member relations in C.N.C. .............................................................................. 47 The role of volunteers ................................................................................................................................... 47 Commitment.................................................................................................................................................. 48 Volunteer involvement .................................................................................................................................. 48 Volunteer officers ......................................................................................................................................... 49 Employment conditions and contracts .......................................................................................................... 49 Volunteer staff............................................................................................................................................... 49 Relations between management / staff and members / customers ................................................................ 49 Marketing .......................................................................................................................................................... 50 Relationship between customers and business .............................................................................................. 50 Marketing plans............................................................................................................................................. 51 Operations Management in Perspective ............................................................................................................ 51 Objectives...................................................................................................................................................... 51 The development of operations management ................................................................................................ 52 Components of an operating system ............................................................................................................. 52 Operational elements of a quality system...................................................................................................... 53 Operations management in C.N.C. Organisations ............................................................................................. 53 Operations Management in Perspective ........................................................................................................ 53 Total Quality Management for C.N.C. .......................................................................................................... 54 Differences between manufacturing and service sectors ............................................................................... 54 Operations management in this C.N.C. ......................................................................................................... 55 6. Events, Decision Making, Management Learning, Visual Management Software, Budgets .................... 55 Decision Making ............................................................................................................................................... 55 Definitions:.................................................................................................................................................... 56 Decision-making: The Issues ............................................................................................................................ 56 Who, How, and Why Decision is Made? ...................................................................................................... 56 Definitions:.................................................................................................................................................... 57 ‘Rational’ decision-making ........................................................................................................................... 57 Problems in group decision-making .............................................................................................................. 58 Types of decisions ......................................................................................................................................... 60 Specialisation in decision making - degeneration theses: ............................................................................. 60 Democratic decision-making: consensus and majority voting ...................................................................... 61 Decision-Making: The Issues ............................................................................................................................ 61 C.N.C. decision making process ................................................................................................................... 61 Running Meetings Co-operatively ................................................................................................................ 62 Management Learning ...................................................................................................................................... 63 Learning in teams .......................................................................................................................................... 63 Lessons from Informal and Incidental Learning. .............................................................................................. 63 Visual Management Software ........................................................................................................................... 64 Financial Services and Practices ....................................................................................................................... 65 Product service of C.N.C. ............................................................................................................................. 65 Retrospective /Financial Statements and Accounting Principles .................................................................. 67 Financial Planning and Risk Management .................................................................................................... 67 Financial Control and Use of Ratio Analysis ................................................................................................ 67 Financial Service and Practices: Who is Involved? ...................................................................................... 68 6. Communication and Documentation ......................................................................................................... 68 munications: Issues and Skills........................................................................................................................... 68 Definitions:.................................................................................................................................................... 68 The communication process .......................................................................................................................... 69 Non-verbal communication ........................................................................................................................... 69 Listening ....................................................................................................................................................... 70 Interviewing .................................................................................................................................................. 71 Communication in groups or teams .............................................................................................................. 71 Written communication ................................................................................................................................. 72 Why written communications?...................................................................................................................... 72 Effective writing ........................................................................................................................................... 73 Developing of writing plan ........................................................................................................................... 76 Letters and memos ........................................................................................................................................ 79 Documentation: Output, process, responsibility ............................................................................................... 82 Planning by advisers ..................................................................................................................................... 82 Pittfals ............................................................................................................................................................... 83 8. Managing Groups: Conflict, Stress, Change, Facilitation ....................................................................... 84 Definitions:.................................................................................................................................................... 84 Groups in C,N.C. ............................................................................................................................................. 100 Groups: formal (permanent or temporary)/informal (functional, emotional) .............................................. 100 Conflicts and Conflict Resolution ..................................................................................................................... 85 Conflict in organisations ................................................................................................................................... 87 Conflict resolution ......................................................................................................................................... 86 Change and Creativity in Organisations ............................................................................................................ 89 Why change? ................................................................................................................................................. 89 Change in organisations ................................................................................................................................ 90 ‘Macro-level’ aspects of change: competition vs. C.N.C. ............................................................................. 91 Creativity in organisations ............................................................................................................................ 92 Running Meetings C.N.C. ................................................................................................................................. 92 Objectives...................................................................................................................................................... 92 Problems with meetings ................................................................................................................................ 92 Types of meetings ......................................................................................................................................... 94 Making meetings more effective ................................................................................................................... 94 Measuring the effectiveness of meetings ...................................................................................................... 96 The potential of networking .......................................................................................................................... 96 Workforce planning ...................................................................................................................................... 97 Personnel Management Activities Case ........................................................................................................ 98 Disciplinary procedures ................................................................................................................................ 99 Personnel Management and Industrial Relations Issues in C.N.C. ............................................................. 100 9. Managing Individuals: perception, attitudes, motivation, time-management ..................................... 101 Motivation: Employee Empowerment and Participation ................................................................................ 103 Motivation and job satisfaction ................................................................................................................... 104 Theories of motivation ................................................................................................................................ 104 Job design (rotation, enlargement, enrichment, characteristic approach, autonomous work groups) ......... 106 Creating a culture for employee empowerment and participation ............................................................... 107 Teamwork in C.N.C. ....................................................................................................................................... 107 Power .............................................................................................................................................................. 109 Guiding, coaching, facilitating principles ....................................................................................................... 110 Approach selection ...................................................................................................................................... 110 Guidelines for Emotional Competence Training ......................................................................................... 110 Performance appraisal ................................................................................................................................. 111 Management Lectures: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. - Evolution of management tendencies: Resource, Product, Improvement, Responsibility Quality Management Systems (ISO 9000/2000) Strategic management characteristics: Scientific Management Approach Production and Service Oriented Company: Diagnosis Approach Information Processing in Production and Service Management: Theory of Information Media Richness Theory Information Management: operations, work-flow, projecting Guest speaker Tasks: Planning, Organising, Leading, Personnel Management, Control Decision Making, Groups, Teams and Teams Building, Management Learning, Visual Management Software Guest speaker In/Formal Operational Management: Tools and Methods, Budgets, Self-evaluation, Projects, Events, Communication Managing Individuals: Perception, Attitudes, Motivation, Time-management, Leadership Managing Groups: Conflict, Stress, Change Organisational Structure Assessment: Lost Information, Size, Type, Levels, Span Management Structure Assessment: Enthusiasm, Delegation Regional Management Projects: OECD, EU Quality Management: events, strategy, improvement Property management case: Co-operatives, franchising, Outsourcing Regional Visual Management Software - Aperture Exercises: 1. 2. 3. 4. 5. 6. 7. 8. Group Project Assignment, Documentation, Project Cycle Strategy and Operations Identification: Aperture Drawings and Regions, Management Game Strategy and Operations Identification: Aperture Symbols and Databases, Management Game Process Identification: Aperture Tables, Management Game Instruction: Who Will Do What Investigation: Events Selection, Knowledge and Skills Acquisition Individual Project Assignment: Title, Specific Objectives, Rationale, Data Sources, Methodology Budgeting Mission Statement: Interests Integrity 9. 10. 11. 12. 13. 14. Project Manual Presentation Project Plan Presentation Project Procedures Presentation Project Records Presentation Individual Value Presentation Regions, Facilities, Leasing, Maintenance Control, Monitoring, Corrective Actions 1. Evolution of management tendencies: Resource, Product, Improvement, Responsibility Quality Management Systems (ISO 9000/2000) You should read and understand to following headlines: ISO 9000/2000 Concept and Historical background ISO 9000/2000 shows management systems: resources, product, and improvement. Evolution of these topics is mutually related and rooted in different problems. Each system developed tools for individual to manage others. Managers always begun to manage strait, then indirectly, then with the help of structures and finally using the power world-wide. Resources management Once upon the time, when resources were not limited yet the most important factors were: worker, manager, and organisation. Worker’s productivity was enhanced either by norms or by responsibility assignments. Some situations were more suitable for norms’ implementation contrary to others. Without solving problem of the worker the manager appeared as the problem bringing worse consequences. Problem of management was approached again from two angles: the systematic and the empirical one. The systematic approach resulted in computers’ application and the empirical approach to management resulted in sophisticated organisations' development. Exhausting internal resources the competition for external resources resulted in to wars. Gradually all resources were ether exhausted or well protected. Further exploitation of resources lost its key position and demand took its place. Product/Demand management Organisations from resource period were not capable to handle all needs of markets’ fluctuation. Therefore, organisations were adapted to the production, product, sale, marketing and social marketing concept of management. All these changes shown that organisation are not the main problem but the problem of continuous sales. Therefore, the core concept of marketing invented how to make buyer form customer and how to make salesman from supplier. The systematic marketing management application divided world on exchange capable part and excluded one. Globalisation manifest itself further by skimming policy and protective structures like WTO, IMF, WB, to penetrate further. Management Responsibility Management responsibility is to maintain and tune up all previous, present and future topics to needs of all claimants. Organisations were designed form owners, globalisation developed voyagers exhausting global differences and administrators protecting local destinations. Ecological threads are pushing on founders emergence who handle all these challenges. Exercise: List three primary goals, which you think should be included in a C.N.C. quality policy: 1. 2. 3. Answer: You might have included some of the following: - meeting members’ needs for C.N.C. in a professional manner - looking to continually improve the service available to members - providing a friendly atmosphere for staff to work in and for members to feel welcome - being efficient and effective in providing services - dealing with problems of overdue efficiently but sympathetically - promoting the general social and economic well-being of the community. Improvement Management Even improvements have its history. Fiscal policy was the most efficient tool to select best organisations. Skimming policy let grow multinationals in to global companies on account of excluded populations. These excluded populations generated protest movement then, for which founders should find the solution based on communication, media richness theory, and media management. Scheme 1: Historical transformations Connected with ISO 9000/2000 Quality systems Responsibility – local advantage: - property management - regional management - business administration - entrepreneurship - global advantage - Resources: A. Local offensive - workers - managers - organisations - wars B. Global defensive ISO 9000 Improvements: A. Local resistance - methods (observation, scientific management, diagnostics, scientific) - fiscal policy - monetary policy - media mismanagement B. Global advantage Product - local offensive: - marketing management concepts - core marketing concept - globalisation - exclusion - global resistance Development of quality systems ISO 9000 Exercise: Does your C.N.C. have any form of quality system, (this need net necessarily be a formally registered one)? If ‘Yes’, what are the main elements of the system? If ‘No’, do you think such a quality system might be introduced? Answer: Your answer may have mentioned that it is used as an operational standard for performance for the C.N.C., improving the service/product quality. Exercise: What do you think is the main advantage of providing clear guidelines on the main activities carried out by an organisation? Answer: A formal, written down, quality system is essentially a guide to operational procedures in the organisation, designed to meet customer’s needs. Exercise: Although documenting the quality systems alows the organisation to identify problems quite easily, it can also be seen to bring a major disadvantage to the organisation. What do you think this might be? Answer: There is a belief that in writing down and formalising a quality system, there is a danger of making it too rigid, thus not allowing for the flexibility and creativity which are important elements of many organisations. In this sense ‘Q’ mark approach might be considered more appropriate for some service organisations, since it doesn’t make use of detailed checklists in the way that the ISO standard does. If and organisation does opt for ISO standards, it should be careful not to go into detail on every minor issue when drawing up the quality system documentation:, rather it should aim to show that there is a coherent quality system in place. The documentation is quite likely to be regularly amended in the light of experience, and following the commitment to continual improvement which is part of ‘total quality’ approach which we described in section 2. Exercise: What role in the quality system do you think is played by: - the Board of Directors - the (paid) manager? Answers: It is not difficult to envisage the appropriate division of responsibilities: - commitment from the Board of Directors - Implementation by manager. Total Quality Management for C.N.C. When you have completed this section you should be able to: - describe the development of the quality concept business - explain what quality means in the concept of business - describe the main features of a total quality management approach to quality - compare the characteristics of a C.N.C. culture with a TQM culture. Origins of the quality concept Exercise: Suggest at least one disadvantage with waiting until the product is finished before quality inspection is carried out. Answer: We have noted two major disadvantages about this inspection approach to quality: - it results in significant wastage of materials, defects would not be found until the product is finished - it divorces the workforce from any involvement in or responsibility for quality. Exercise: Indicate, which of the following statements are true and which are false. 1. According to statistical process control, variation is the enemy of quality T/F 2. Statistical process control is concerned more with improving the product than the actual process. T/F 3. The emphasis of statistical process control is on reducing defects in the process. T/F 4. Statistical techniques provide information to provide better quality service to customer T/F 5. Statistical techniques provide information which allows errors to be detected and reduced. T/F You should have ticked following boxes: 1.T, 2.F: not on product but process, 3. T, 4. F: again process, 5.T. Deming’s 14 points for management Exercise: Indicate which of the following statements are true and which are false. 1. Commitment of top management is sufficient to ensure quality improvements. T/F 2. Reliance on slogans and exhortations is important to improve worker productivity T/F 3. The ‘quality circles’ movement is concerned with improvement of production processes. 4. Motivation of workers is not important in bringing about quality improvements T/F These are nearly all false statements! Answers are: 1. F: necessary but not sufficient, 2. F: is worthless, unless the means to improve productivity are also provided, 3. T, 4.F: Motivation of workers, and giving back price in their workmanship, is seen as highly important to bring about quality improvements. Definitions and dimensions of quality Exercise: Quickly jot down what you understand ‘quality’ to mean within a business context We saw earlier that from one perspective, quality is ‘defined’ by customers. In other words, quality is whatever customers value in a good or service. We also learned that quality is reducing the variation in a product or services so that defects are reduced. Therefore, the process through which a product or service is produced (provided) must be of a high quality. This includes having committed and competent workforce. Exercise: How would you evaluate the quality of your C.N.C. which point to its qality, against each dimension? we have given you suggestions for the two first dimensions to get you started. Quality dimensions: performance (The main characteristic is the product itself: the ‘quality’ characteristic lies in the low-cost nature of it, special features (Include insurance protection), reliability, conformance, durability, aesthetics, perceived quality, serviceability This is a bit tricky! We should suggest, for example: Reliability: ... Exercise: Draw up a list of the likely outcomes if a company provides a poor quality product or service. Answer: The results of poor quality can include: - loss of business - product or public liability - loss of productivity - employees not as prompt and efficient with members of the counter - costs to the company in terms of money, time, loss of face, etc. Let us take closer look at the type of costs of poor quality products or services will mean to a company. Exercise What do we mean by systems and processes? List four systems or processes involved in the provision of the C.N.C. services. Answers: (You might have following: service purchase, services delivery, ... are processes, and resources, products, improvements and responsibility are systems) Exercise: Below we have given you an example of each of the types of costs reffered to above. Can you add another examples to each? Internal failure costs: 1. Lost production time. 2. ... External failure costs: 1. Warranty work. 2. ... Appraisal costs: 1. Costs of inspection. 2. ... Prevention costs: 1. Training. 2. ... You might have included some of the following: Internal failure costs: - lost production time - wastage of materials - equipment damage - employee injury. External failure costs: - warranty work - liability/litigation - handling of complaints - lost of customer goodwill. Appraisal costs: - costs of inspection - costs of lab testing - costs of labs. Prevention costs: - training - quality control procedures - increased attention to design and production phases. Exercise: Examine ten features of TQM. List at least two of them, which would appear to fit easily with assisting C.N.C. practice. 1. 2. Answers: We would say that the following features accord with the practice of at least some C.N.C.: - find out what customers want - design product/service that meets customer’s requirements - employee empowerment - team approach Q: For each aspect in the table, complete the relevant entry for C.N.C.. Then comment on the differences between a TQM culture and the C.N.C. culture. Aspect C.N.C. culture Overall aim Objectives Management Role of manager Customer requirements Problems Problem solving Improvement Suppliers Jobs Focus The further you are from the centre the bigger power individual or organisation have over global population. The upper ‘management’ related development can be described by following Scheme 2: Scheme 2: Possible environmental and personal orientations KNOWN DEVELOPMENTAL END POINT UNI MATURATION SHAPING TAR “Development through “Development” through Y inevitable stages. Can get planned steps. “Training gap” stuck. “Expert” consultant’s can be overlooked. normal approach. Organisation’s normal approach. EXPERT POWER SOCIAL DESTINY HOLISTIC ENGINEERING INVISIBLE AGENCY DES “Development through “Development” through TIN internal discovery. Can be interaction with others. Can Y isolating. Individual’s normal lose “self”. Social theorist’s approach. “normal” approach VOYAGE EMERGENT UNKNOWN DEVELOPMENTAL END-POINT COREG U LAT ED IDE N TIT Y Different behaviour in quadrants is describing how people act differently, given by both environmental (un/known) and personal (unitary / co-regulated) orientation. Maturation position emerge in combination of unitary destiny and known developmental end point. Such behaviour is usually typical for students, who use simple solutions to act as great entertainers. Semester Project Assignment: 1. 2. 3. 4. Select place or organisation Specify problem using Scheme 1 Specify orientation of people you can use after Scheme 2 Process project ISO 9000/2000 documentation solving the problem Synergy Effect Generated by Individual Synergy effect generated by individual is one of possible answers on question 4. ”Describe how would you suggest start prevention of exclusion, global entrepreneurship and media mismanagement by other way?” Management generates unexpected synergy effect from co-operation looking like 1+1=3. This example is true if complexity, transformation and selection principles are tuned together. Synergy Effect = f(complexity, transformation, selection) Complexity Complexity emerge in competition or co-operation among: - interested parties requirements and satisfaction - management responsibility - resource management - product realisation - measurement, analysis, and improvement Improperly understood complexity can result in following pittfalls Case Study: Observations of Transforming East European Economies and Claims for Policy Quality Control Results: 1. Global entrepreneurs exhausted and collapsed entrepreneurial opportunities, and excluded local population from future economic development 2. Exhausted entrepreneurial opportunities have the shape of: - illegal money transfers (17 banks collapsed, the last one for 3 billion EUR), - management takeovers (Liaz, Tatra, Zetor and other companies employed foreign managers or rely on abandoned contracts with ”strategic” partners) - political and legal hostility (exports were forbidden because of dumping which was not proved but company collapsed during the legal procedure (Vitkovice steel company, and others) 3. Global entrepreneurs can be even of the local origin but they collapse entrepreneurial opportunities by purpose and leave the country (Mr. Kožený with Czech and US origin resettled to Ireland and controls 10% of the Czech property value, for example) 4. Media convinced people that all this is good. And people believe that 10 years of economic decline is OK and further decline too. Czech Government therefore, against its interests invited International Monetary Fund and World Bank to have a meeting in Prague. Conclusion: Media and Global Entrepreneurs have the same effect as wars and exclusion. Suggestion: Roots of exclusion, media, and global entrepreneurship misusing are traceable and should be controlled. ISO 9000/2000 should serve as a global norm for prevention on the level of policy of states and companies. ---------------------------------------------------------------------------------------------------- -------- Questionnaire: 1. Do you agree that exclusion, global entrepreneurship and media mismanagement have the same effect as wars? (You can stop here if not). Yes / No 2. Do you agree that roots of wars, exclusion, global entrepreneurship and media mismanagement are traceable by ISO 9000/2000 – remember the presentation? (You can stop here if not). Yes / No 3. Would you support ISO 9000/2000 documentation development: manual, plan, procedures and records? Select of describe how, if Yes: a. WTO should develop quality documentation preventing wars, exclusion, global entrepreneurship and media mismanagement, and control its implementation. (Go further if not) Yes / No b. States should develop quality documentation preventing wars, exclusion, global entrepreneurship and media mismanagement, and control its implementation like anti-monopoly law. (Go further if not) Yes / No c. State your suggestion for implementation of quality documentation: ………………………………………. …………………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………………. 4. Describe how would you suggest start prevention of exclusion, global entrepreneurship and media mismanagement by other way? …………………………………………………………………………. ……………………………………………………………………………………………… ……………………………………………………………………………………………… 5. Fill your identification further if you want to become involved in quality documentation development and traceability control of exclusion, global entrepreneurship and media mismanagement. Name: …………………………………………………………………………………… Email: …………………………… Phone: …………………………………… Address: ………………………………………………………………………………… ………………………………………………………………………………………………………………… This questionnaire is designed for politicians. Would you imagine that managers can diminish power of globally acting individuals over their companies? Assignment: How will you create a knowledge of unclear concepts? Transformation Brought by Quality Discovery and Delivery Transformation is personal capability to join and influence parties, which are gaining or losing the most. Positioning and defining the offer is the way of influencing parties. This process is in the literature (Teboul) called ‘Squaring the Circle’. Supply Demand Not demanded quality Perceived satisfaction, effectiveness of an offer Unsatisfied needs and wants Perceived failures. Nonconformity + Firm A Competitor B Conformity The ‘+’ of differentiation Case Study: EU enlargement case Internationally composed group met to discuss EU enlargement. Each participant presented advantages and dangers of enlargement for his country and proposed how to care for less developed countries. Finally was discovered that no one want to be cared. The care was perceived as foreign intervention. ”The EU enlargement is possible only under strategy on management of diversity”, was agreed and the following proposal was made: 1. The start of selection of reworded in the EU enlargement case should be a logo proposal, which is based on synergy effect: 1+1= U+EU=3 ”U” is a symbol of ”you” as a person skipping language barriers. ”EU” and ”1+1” is clear. ”3” is added value by personal contribution of each of us. Children since first year of school should be provoked by seeming mistake and parents decode and remember this logo answering their questions. The chain of symbols should be gradually reduced from the left to the right. Finally the number 3 should remain as sufficient reminding personal responsibility for an offensive approach improvement described below. 2. Mission statement: Only well managed EU enlargement open labour power and property markets and brings the same challenges and benefits as free market for goods. Group of Brugges is here to strengthen the human capability to adapt by stressing the care for diversity development. Democratic (concentric) diversity (ex-centric) management criteria and processes will optimise management responsibility for synergy effect for any challenge of the future. The responsibility for diversity management is the imperative, which is valid for all European members now and in the future. The enrichment of Europe by contribution of individual become the every day challenge and the guarantee of the European future. 3. a. b. c. d. e. f. 4. Resources: Cultural understanding is the first step in the process of European diversity management. Therefore, program should be developed generating synergy effect among following perceptual or cultural differences: Power of geografic (West) and demografic (East) attitudes Rules for EU budgetary and Global monetary transfers Time of transition and inner multi-functionality (diversity) differentiation Regional differences understanding and proliferation Education in projections of above mentioned consequences (a-d) for each European local unit Benefits and costs comparisons based on difference between projections (e) and regional differences proliferation (d) Addresses: This letter should be addressed to: ………………………………………….. The mission on levels 3a-f is a challenge for all these representatives proving their capabilities in a diversification based entrepreneurial programs development. Assignment: How you will manage the diversity in your project? Selection of Reworded Selection is based on guarantees of personal benefits for those who personally transformed and manage the complexity. Personal benefits depend on the personal position in competition among other claimants. Management is helping claimants to become selected, transform themselves, and benefit from synergy. Documentation is the evidence for client and claimant that the goal will be reached before the contract is signed. Each of us is in both, position of management client, and claimant. Let’s describe positions of clients and claimants in school, conventional and network based organisations. Pitfalls Not all actions you do for others are appreciated. Let’s learn from following opinions of students about topics listed in rows of the table below. 1 is ”disagree”, 7 is ”agree” and 2-6 is the scale between these extremes. The way of speaking is clear S S2 S3 S4 S5 S6 S7 S8 S9 S1 S1 S1 S1 S1 Ave 1 0 1 2 3 4 rag e 7 5 3 5 6 3 5 6 7 6 7 6 7 1 5,3 After each lecture I feel it was a contribution 6 5 4 6 4 4 5 5 5 5 6 6 7 6 5,3 The atmosphere is friendly 4 3 3 4 2 2 6 2 3 3 6 7 6 3 3,9 The lectures are related to other subjects 4 2 2 3 6 3 4 1 6 5 2 4 7 6 3,9 The topic of this lecture was interesting for me 5 4 3 4 2 The lecturer is an authority on the subject 5 2 2 3 3 3 3 2 2 3 3 6 6 2 3,2 The subject can be appplied on other subjects 4 2 3 3 3 4 4 1 4 2 2 4 6 5 3,4 The subject can be used in practice 1 3 2 5 2 4 3 2 2 3 3 4 5 5 3,1 The students are involved in the lesson 3 2 5 6 3 4 5 5 7 5 6 6 7 1 4,6 Time is used effectively 4 5 5 6 5 3 3 3 7 5 5 2 7 3 4,5 Management 4 3 2 6 6 5 6 4,2 Last year students had following problems to understand Management properly: It was not clear what the teacher was asking/talking about. I would love to have management, because I think it would be useful, but not the management we had. Good level of English, but the lessons were not clear, there were some misunderstanding during the lectures. The teacher should také care about wheather students really understand him during the seminar! Sometimes is not understandable what is lecturer talking about. Good English, but sometimes I had a problem to follow the topic. Sometimes we got lost and we could not follow the lessons even when Mr. Linhart tried to answer our questions. Students can´t see the practical use of this subject. The way of speaking is not clear, the feedback from students is missing total. The lessons were very confusing. Mr Linhart was not able to explain us the aim of the project work. We were asking a lot of questions, but the answer did not help us. From my point of view the biggest problem are the communication skills of Mr. Linhart. The lectures were confusing, messy and not precise. I did not recognise the importance of the whole project. It was almost the only part of the exam. He is not very students-friendly. He is like opposite of "short and brief". Assignment: How will you prevent negative reactions of people influenced by your project? What is your reword and how will you ask for? Summary In this section we outlined some of the main approaches to management including scientific management, classical management, human relations, bureaucratic management and quality management systems. Chapter ”Strategy” and following chapters were opened by case studies. 2. Strategic management: Diversity, Culture, Change, Structure, Planning You should read and understand to following headlines: Diversity When you have completed this section you should be able to: 1. 2. 3. 4. 5. Describe the levels of global participation Identify the types of expatriate managers Discuss the importance and dimensions of cultural differences as they apply to the workplace Explain the legal requirements for managing diversity Discuss how diversity can be a competitive advantage of organisations Definitions: Diversity = Differences among people in terms of their identification with various groups. Groups representatives: - Domestic organisation = An organisation that operates within a single country - International organisation = An organisation that has one or a few facilities in another country - Multinational organisation = Organisation with facilities in several countries and a substantial proportion of sales in foreign countries - Global organisation = An organisation that has a flexible approach to identifying needs and opportunities throughout the global competitive market Representatives of diverse people: - Expatriate managers = Managers who work in a country other then their country of origin - Parent country national = A manager or other employee whose country of origin is the country where the organisation has its headquarters - Host country national = Someone from a host country hired by an organisation to work in its facility - Third country national = A manager or employee who has a country of origin different from both the parent country and host country where he od she works Problem of identification: Culture shock = The confusion, anxiety, and frustration that result from immersion in a strange culture Culture = The set of assumptions group members share about the world and how it works and the ideals worth striving for. Individualism - collectivism = The degree to which people act as individuals rather then as members of a group Uncertainty avoidance = The degree to which people prefer structured rather then unstructured situations Masculinity – femininity = The extent to which a culture values behaviour traditionally considered masculine (co-operativeness) or feminine (helpfulness) Power distance = Expectation for the unequal distribution of power in a hierarchy Long-term—short-term orientation = The degree to which a culture focuses on the future rather then the past and present Equal employment opportunity = Providing individuals with an equal chance for employment, regardless of their race, colour, religion, sex, national origin, and physical and mental handicap Glass ceiling = An invisible barrier that keeps women from attaining the topmost positions Sexual harassment = Unwelcome sexual advances and sexual conduct that must be tolerated as a condition of employment or basis for employment decisions, that unreasonably interferes with the employee’s work performance, or that creates a hostile working environment Diversification: Affirmative action = A program for attracting and retaining minority employees Disabilities act = Law requiring employers to make ”reasonable accommodation” for the physical and mental disabilities of a person otherwise qualified to do a job Diversity of interdependent units should be integrated. Questions: 1. 2. 3. When is diversity positive and when not? What are positives of diversity based on? What can decrease the importance of diversity? Culture and Change When you have completed this section you should be able to: 1. Discuss the role of organisational culture in creating and sustaining a competitive advantage 2. Recognise forces for change 3. Discuss how leaders manage organisational culture, including controls, crises, resources, role modelling, and rewards Definitions Organisational culture = The set of shared assumptions, values, and norms that identifies what the organisation considers important and how employees – including managers – should behave Basic underlying assumptions = Shared views that are taken for granted and considered nonnegotiable Values = The enduring believes and culture that the culture upholds as important guides to behaviour Espoused values = The values that employees say embrace and to which they conscious refer when making decisions (hinge propositions?) Rites and rituals = The ceremonies incorporating forms of cultural expression such as recounting legends Myths = Anecdotes that are widely recounted within the organisation, tell of leaders’ behaviour, and reinforce underlying assumptions Organisational change = A modification or transformation of organisation’s structure, processes, or goals Tectonic change = Moderate but significant change that builds on existing elements of the organisation’s identity Force fields analysis = A process for managing the forces that drive and restrain change Model of change and its stages = unfreezing + transformation + re-freezing - Unfreezing = Melting resistance to change - Transformation = Altering one or more characteristics of the work setting - Re-freezing = Change is reinforced as part of a new systém Organisational development = The systemwide application of the behavioural sciences to establish and reinforce organisational strategies, structures, and processes to improve the organisation’s performance Organisational development = The systemwide application of the informational analysis to establish and reinforce organisational structures and predict behaviour based on lost information Heroes = Role models who embody the attributes of the culture Intensive growth Market penetration Market development Product development Objectives related change is called a growth Integrative growth Diversification growth Backward integration Concentric diversification Forward integration Horizontal diversification Horizontal integration Conglomerate diversification Culture: Management in Virtual Organizations Campbel, A., Grantham, C.: Organizational Assesment in the Distributed Work Environment in Jackson, P.,J., Van der Wielen, J.,M.: Teleworking International perspectives. Routledge 1998, ISBN 0-415-17354-X, p. 169184. Table 1: Virtual workplace arrangements Same time Same place Central office Different place Telecommuting Different time Flexitime Virtual office The advantage of distributed work appear to include increased productivity and worker satisfaction, reduced commuting time and transportation-related stress, and decreased corporate overhead expenses. Studies also suggest that the challenges successful distributed work programmes must overcome include worker isolation, the need for new ways to monitor performance, the need for new organizational structures and norms to ensure maximum return on the distributed work investment (Grantham, 1996: Working in a virtual place: a case study of distributed work, Proceedings of ACM SIG on Computer Personel Research, Denver, CO: 38-52). Probably the most cogent view of intelectual capital has been developed at Skandia Group (1995). The Skandia Group have created a model describing a principal building blocksthat combine to form the company’s intelectual capital. The model is illustrated in Table 2. Table 2: Skania’s model of intelectual capital Market value Equity (organisation-verb:) Intellectual Human Structural (market:) (speed) Customer Organisation Process Innovation Human capital is the source of innovation and renewal, providing information, insight, and ideas. A company’s human capital base is composed of four individual characteristics: genetic inheritance, formal education, life experience and social psychological attitudes about life and business. Human capital is not a subset of intellectual capital, but the store house for it and its limiting factor. A recent quote from Gary Becker, the 1992 Noble Laureate highlits this: Human capital is as much a part of the wealth of nations as are factories, housing, machinery, and other physical capital. In fact economists estimate human capital accounts for much more than half of all the wealth in U.S. and other economically advanced nations. Structural capital is the non-human element that supports human capital. Structural capital is defined as the sum of the strategy!!!, structure!!!, systems!!! and processes!!! that enables the organization to produce and deliver products to costumers. It is an enabler of performace, promoting the continuous application of knowledge to business. It also is a cultural ethos that promotes learning!!! and sharing of those learning experience. The most effective way to manage this element of capital is through examining information flows in and around of organisation. These information flows are distribution channel of applied knowledge from the firm to the customer. Structural capital is arguably of greater importance, as it remains with the company, and it can be used in time and again. Structural capital can amplify the value or subtract from human capital (Skania Gorup, 1995). Conventional industrial business models are built on assumption of the central controling authority of assets and means of measuring the value of the enterprise. An alternative is to place more importance on measurements of customer capital. In the emerging Internet commerce business model it is argued that value lies in the interaction between companies and their customers. Customer capital is the knowledge of channels, customer preferences, trends and competitive intelligence. Customer satisfaction is measured in terms of demands customers make on the firm for products and services. These demands then feed back into the organisation via human and structural capital mechanisms and appear as changes in distribution channels and service levels. Without human and structural capital a firm cannot receive an added-value from customer capital. When internal human capital reaches its own limit, the only effective tactic to increase overall intelectual capital is to tap into the customer base to discover new preferences, changes and applications. This suggests therefore, that part of an organisation’s customer capital lies outside management’s direct control, and in fact is held by its customers. Organisational capital contains the systematised!!!, structured!!! and packaged!!! competencies and systems for converting the company’s innovative strength and value creating work processes. Organisational capital enables faster and more effective sharing of knowledge through making it more accessible to users. Enhanced future earnings capabilities will be realised as the competence and experience can be multiplied or leveraged through increased internal or external C.N.C.eration. The Skania model stresses both structural and organisational capital, and by inference, management’s ability to capture, analyse and exploit intellectual capital. Five-factor based model at the level of individual item indicators performing an analytic factor analysis has created a subset of factors which measures intellectual capital. Table 3: Definition of business factors Business process question Systematics factor Factor What are we talking about? What are we sure of? What is possible for us? What will the environment help and oppose? What is becoming necessary? Uniqueness Lower nature Higher nature Nourishment Mastery Systems Leadership Personnel Planning Site The result is another set of factors that asses an organisation’s human, structural and customer capital. The Organisational Assesment System (OAS) is designed to help managers to make decissions about whether or not their organisation is ready to move into the distributed work environment. Most analytic systems are based on sociological perspectives of structure, whereas OAS on social psychological perspective of process. In the OAS, structure refers to relatively stable patterns of interaction between people in organisations that persist over time and give rise to creation of status and power hierarchies. As these hierarchies dissapeare in distributed work organisations, perspectives more suited to dynamic interactions among members of organisations are more relevant to analysing and solving ongoing business planning issues. Table 4: Elements of Organisational Assesment System Factor Operational definition Systems Leadership / direction Personnel Planning Site Information systems capabilities and functioning to support distributed work Capacity of organisational leadership to motivate employees, measure results and asses ongoing operations for variance control Capabilities of human resources, adequacy of training, and continuous learning procedures Degree of sensitivity to anticipate challenges to organisations, changes in market and speed to incorporate changes in operations Infrastructure to support interaction with customer Number of indicators 15 items 18 items 13 items 14 items 11 items In sense this has linked the theoretical literature of both organisational assessment and intelectual capital management. If in fact these two approaches towards planning and development of organisations are linked at a conceptual level, then it should be possible to see some correlation in the result of measuring an organisation’s effectiveness. Management and worker resistance to distributed working made it clear that creating remote work space takes more than buying a building, setting up some computers, and letting people work from home. The possibilities of external consultants bought in to solve these problems were to: 1. Systems: Develop policies and procedures for the new remote facility. 2. Leadership: Develop selection criteria to determine who would work in the new facility. 3. Personnel: Develop assessment methods for measuring performance and cost benefits in the new facility. 4. Planning: Provide training and education to employees and their managers. 5. Site: Define and install the right hardware, software and networking capabilities for workers at all levels in the new facility. Table 5 compares the average percentage scores on the OAS with SoftCo scores. Table 5: Comparative OAS analysis Average score (%) SoftCo score (%) Difference (%) Direction 62 46 16 Customer service 76 49 27 Systems 63 71 -8 Personnel 68 43 25 Planning 76 50 26 It is quite apparent in this comparison that SofCo has significant organisational issues. The company has below average success scores (25 % and over) on three critical business indicators: Customer service, Personnel ad Planning. This then raised the question how these indicators related to the use of intellectual capital within the organisation. After calculating the intellectual capital scales from the OAS, a similar pattern was identified in the data. The outcomes and implications of the analysis for SoftCo were fairly dramatic. Within 60 days of completing OAS and informing management of the results, SoftCo cancelled its attempt at moving into the distributed work world. The project was called off citing a lack of adequate resources and too much time pressure to complete a critical product release. Leaders must first strive to develop their own intellectual capital before they can hope to institucionalise the process. Questions 1. 2. 3. 4. What is the difference between behavioural and analytical approach to the organisational development? When the change or entrepreneurship has negative consequences? What relation is between culture and change in organisation? What is the difference between change and growth? Organisational Structure When you have completed this section you should be able to: 1. Explain how organisations can achieve standardisation through structure 2. Discuss different factors involved in achieving co-ordination through structure 3. Identify the different factors of organisational design 4. Discuss the contingency approach to structure and design Definitions Organisational structure = The arrangement of propositions and groups of positions within the organisation Organisational design = The process by which the organisation’s strategy, culture, human resource management practices, size, technology, and structure fit together Standardisation = The condition in which the organisation’s outputs conform to its economic, quality, and other measures of acceptable performance Formalisation = The process of planning rules, policies, and procedures to regulate organisational behaviour Professionalism = The use of professionals with extensive work related knowledge and skills Socialisation = Teaching employees the norms of the organisation Specialisation = The division of work into jobs that are limited in terms of tasks and responsibilities and differ from one another significantly Horizontal specialisation = The extent to which the organisation’s jobs have limited task variety Vertical specialisation = The extent to which the organisation limits jobs according to responsibility required Co-ordination = Integration of the organisation’s parts to achieve desired outcomes Span of control = The number of people under a manager’s direct supervision Pooled interdependence = The interdependence that exists when groups operate independently but together contribute to the organisation’s overall success Sequential interdependence = The interdependence that exists when one group must complete certain task before another group can complete its task Reciprocal interdependence = The interdependence that exists when each group’s output serves as input to other groups Departmentation = The process of establishing of clusters of employees Functional departmentation = The process of grouping employees according to the organisation’s functions Divisional departmentation = The process of grouping employees according to market or operational characteristics Hierarchy – A pattern of reporting relationships in the organisation Chain of command = The continuous line of authority extending from the person with ultimate authority down through the hierarchy to non-management employees Delegation = The process of distributing authority and responsibility Centralisation = The concentration of authority and decision making at the top of the organisation Decentralisation = Dispersal of authority so that it is spread throughout the organisation Slack resources = Buffers that are created between groups to reduce sequential interdependence Self-contained tasks = Interdependent work units consisting of members of previously interdependent groups Vertical information systems = Computer systems that provide managers with information about the organisation’s performance Liaison position = A job that builds communication through bargaining, persuasion, and negotiation Representative group = A group consisting of members from each of the interdependent units who meet to coordinate their activities Integrating manager = A manager who has formal authority to co-ordinate the work of interdependent groups Matrix organisation structure = A structure that combines functional and divisional departmentation U- form organisation = An organisational design based on functional departmentation, often for a single-product strategy H-form organisation = An organisational design based on product departmentation, with the products being the organisation’s various business M-form organisation = An organisational design based on specialisation in particular industries Matrix organisation = An organisational design that overlays product departmentation onto a functional structure Network organisations = Core organisations that meet customers’ needs by contracting with other organisations Core competencies = The process in which the organisation excels and that are key to its success Strategic alliances = A long term partnership designed to accomplish both parties’ strategic objectives Process-based design = Organising by the task that create value for customers Competency-based design = Organising by employees’ capabilities Mechanistic organisation = Organisations with a structure that is highly formalised, specialised, standardised, and centralised Organic organisations = Organisations geared toward change and flexibility Simple undifferentiated structure = A structure with no departments or hierarchy Core technology = The dominant technology used for producing goods and services at the lowest level of an organisation’s hierarchy Boundary spanning roles = Roles held by employees who routinely interact with members of the organisation’s environment and with members of organisation Questions 1. 2. 3. 4. 5. 6. What effect can bring structured organisation? What effect can rise from specialisation? What is the consequence of structuring and specialising of organisations? What need to be done in hierarchical organisations? How to design organisational structure? What is contingency approach? Strategic Management When you have completed this section you should be able to: 1. Describe the three major phases of the strategic management process 2. Discuss the difference among corporate level, business level and functional strategies 3. Discuss the difference between and organisation’s mission and its goals 4. Describe how managers select strategy 5. Discuss how to choose effective objectives 6. Describe how organisations use cost and differentiation strategies to achieve their goals 7. Describe the different type of control organisations can use to help improve overall performance Definitions Strategic management = Ongoing process of aligning the organisation with the environment so that it can achieve its goals Mission = The organisation’s reason for being Goals = Statements of what an organisation hopes to achieve in the medium to long term SWOT = Evaluating organisational strengths and weaknesses and environmental opportunities and threats Tactical planning = Medium term planning at the level of divisions and departments Operational planning = Planning conducted by managers and employees to determine what they must do and what resources they will need over next month, week, or day Strategy implementation = Using the organisation’s resources to achieve its strategies Downsizing = The elimination of jobs Control = Comparing performance with a standard and making corrections Standards = Measurable targets that are comparable with actual performance Financial audit = An independent appraisal of the organisation’s financial performance Budgets = Statements of the resources required to implement a strategy Total quality management (TQM) = An organisation-wide effort to continuously improve the quality of work processes (the ways people, machines, and systems get things done) Statistical process control (SPC) = The use of statistics to detect problems in the production process Cycle time = The time from the customer request until that request has been fulfilled Just-in-time (JIT) inventory systems = Inventory control systems that arrange for materials to arrive exactly when they are needed for production Organisational culture = The norms and values shared by members of the organisation Questions 1. 2. 3. 4. 5. 6. 7. What effect strategic management can bring to the organisation? What effect can rise from different types of planning? What is the consequence of audit, budgets, JIT, SPC, TQM, and standards? What need to be done in cycle time? How to design organisational culture? What is the difference between financial and quality approach? What is the difference between planning in organisations with different hierarchy? Case Study: What needs to be planned in C.N.C. We started to address the issue of what needs to be planned in the last exercise. Clearly there is a wide range of planning tasks. We sill just name a few, before getting on to how planning is done. You will be able to think of other planning tasks in the context of the work you do in your service C.N.C.. One major planning task is actually setting up the service C.N.C.. There is much more involved than just following a number of steps: the most important ingredient being the commitment of the founding members to getting the service C.N.C. established. Having received this commitment, there is then a lot of planning involved, for example: - How often should we meet? - What level of service (if any) should be we making before registration? - How long should we meet before deciding to apply for registration? - How are we going to publicise the proposed service C.N.C. in the community? - Where will we set up, i.e. what premises will we use? and so on. Once the service C.N.C. is established, there are whole range of tasks where planning is required, both shortterm and strategic. We can divide those planning tasks into a number of main categories, for example: - setting financial goals - dealing with staff (including volunteers) - dealing with members - long-term development. Exercise: Give two examples of planning tasks that you can think of, under each of the four categories listed above. Setting financial goals 1. 2. Dealing with staff: 1. 2. Dealing with members: 1. 2. Long-term development: 1. 2. Answers: Except for the last category, the planning tasks could be either short-term or strategic. You might have included some of the following: Setting financial goals: - fixing yearly levels for savings - setting a ratio of liquid funds to funds invested - fixing targets for recovery of delinquent loans. Dealing with staff: - drawing up rosters for volunteer staff doing counter work - recruiting additional full-time staff - establishing procedures for regular staff meetings - planning training of staff members. Dealing with members: - publishing the C.N.C. to the community - deciding on opening hours - designing the building to be ‘customer-friendly’ - finding ways to get feedback from members. Long-term development: - planning to move to a larger building - computerising all transactions - setting long-term targets for growth of membership and transactions - deciding to appoint a full-time manager. You might have thought of other issues as well, because there are many - some are practically day-to-day planning tasks which may become routine:, others have great significance for the future development of the C.N.C.. It will probably be clear to you what, in brought terms, has to be planned. The harder part is how to plan successfully and that is what we will turn now. (A good reference for this purpose, with some interesting case studies, Is I Unterman and R H Davis, Strategic Management of Not-for-Profit Organisations: From Survival to Success, Praeger, New York, 1984.) How is planning done? We can continue with the distinction between short-term and strategic planning, since there are differences in how planning is done in the two cases. Strategy Formulation When you have completed this section you should be able to: 1. Explain why both short-term and strategic planning are essential to service C.N.C. survival and growth 2. Give examples of the some of the main short-term and strategic planning tasks within the service C.N.C. 3. Explain how planning decisions are made within service C.N.C. and evaluate to what extent planning decisions are based on member participation 4. Explain the respective roles of the Board, the manager and the general members in both short-term and strategic planning. How to distinguish a short and long term planning importance for strategy formulation? Suppose I’m going on the weekly shopping trip to the supermarket. I’m in a bit of a hurry, so I rush out, jump into the car and off I go. Feeling disorganised, I go round all the shelves not really clear about what I want, and having to back-track when the need for more items suddenly comes into my head. As the items are checked-out at the till, it becomes clear to me that I didn’t bring enough money! Exercise: State two specific areas where I failed to plan Answer: Well, for start I didn’t think about what I wanted, and that resulted in a disorganised, inefficient search in the shop. Secondly, I didn’t consider my resources - how much money I had. This is the example of short-term planning - or lack of it. It is concerned with actions in the immediate future, which will be also completed in the immediate future. The other type of planning we are concerned with is strategic planning. This is planning for the long-term, but more significantly it is planning to meet the overall Objectives of the organisation. If I decide it is time for me to become health-conscious and only eat certain types of food, then in future my trips to the supermarket will be better directed because I have defined the area in which I am interested. Of course I might still forget to bring my money! This distinction can be applied to almost any organisation. In the service C.N.C. context, an example of shortterm planning might be drawing up a roster of volunteers to do counter work for the next month:, or making sure that enough liquid funds are on call every month for credits and receivable. It is fairly clear that these are shortterm considerations. Strategic planning may include, for example, deciding to purchase new, bigger premises because demand for C.N.C. services is projected to expand:, or deciding to computerise all transactions. These are major, long-term decisions which significantly affect the operation of the service C.N.C. and the quality of service it is able to offer to its members. For the growth and development of service C.N.C., strategic planning is vital. Yet short-term planning is essential too - for example. if a roster of volunteers is not drawn up, the service C.N.C. may be short-staffed at peak times, and members will start to wonder whether they are going get a quality service, and C.N.C. are nothing without their members! Exercise: State which of the following planning tasks are examples of short-term planning and which are examples of strategic planning. Short-term Strategic 1. Deciding to employ new staff 2. Preparing monthly cash-flow projections 3. Deciding to set up schools’ branches of C.N.C. 4. Deciding to open the C.N.C. more days in the week 5. Planning a Christmas draw for members 6. Deciding to offer a new kind of service, e.g. stamps. Answer: I suggest that task 2 and 5 are short-term whilst 1,3,4 and 6 are, by their nature, strategic. However, some of the answers are not clear-cut. For example, on the first issue of deciding whether to employ new staff, for a large firm where demand for its products fluctuated seasonally, the taking on of new staff would be a short-term consideration, something the company would usually do at a certain time of year. But for a service C.N.C. it is a much more significant step towards offering a better service to members: so we would regard it as an aspect of strategic planning. Again, take the example of the Christmas draw. Clearly it only happens once a year, but you could not describe it as having major strategic importance. For short-term planning we would emphasis the importance of holding regular planning meetings. In addition to Board meetings, which will be held at least once a month, staff meetings will need to be even more frequent, and it will be held at staff meetings where a large proportion of short-term planning issues will be discussed. Issues such as how to speed up the counter service, for example, or whether to make minor changes in opening hours, could be discussed at such meetings. You will be dealing with question of how to make meetings effective in the unit on decision-making. We will only note here the following: - decisions need to have been clearly agreed: - by consensus - decisions should include: -- what has been decided -- how the decision is to be implemented -- who is responsible for its implementation -- the time frame: when is implementation to take place -- a monitoring/evaluation mechanism which might involve reporting back to the next meeting - decisions made should be clearly recorded in a minute book. Strategic planning Strategic planning requires a more detailed approach since it involves a process of change and development in the organisation. It is not just a matter of fixing long-term targets, but it involves laying down an approach which must be implemented, continuously reviewed, and, if necessary modified again. We can consider three components of the strategic planning process: - plan formulation - implementation - control Planning Corporate planning Division planning Business planning Product planning Implementing Organising Implementing Controlling Measuring results Diagnosing results Taking corrective action We saw in earlier sections how these components are inter-linked, and how control/monitoring can feed back into plan formulation. Here we will emphasise plan formulation, since implementation and control will be discussed in the following sections. But all three components are crucial for strategic planning process. The strategic plan is based on a definition of what the organisation wants to achieve: the goals or Objectives of the organisation. Corporate mission Strategic business unit Corporate portfolio identification evaluation and strategy Corporate new business plan Mission Statement Many organisations lay down ‘mission statements’ which in broad terms spell out what the organisation wants to achieve. The ‘mission statement’ should be written in such a way as to motivate and inspire members, as well as to inform them. Exercise: What might be included in the mission statement for a C.N.C.? Answer: Well, there would probably be something like: - providing a good service to members - promoting the social and economic betterment of members - promoting the notion of mutual benefit or perhaps - promoting the idea of people-centred development. What can we say about mission statements? - they should be a source of inspiration for those to whom they apply - they tend to be broad - they tend to not lay down quantified targets. So mission statements are more about stating the philosophy of the organisation. They are useful in so far as they set the overall framework for defining goals or Objectives. (Since we can consider goals and Objectives as basically the same thing we will use the term ‘Objectives’ from now on.) Environmental Analysis: Objectives Discovery It is essentially easy to measure whether the objectives have been achieved or not, but setting these objectives is only the start of the strategic planning process. How to meet the objectives requires more detailed work. What are the steps? Initially, we need a formulation of the plan. This involves: - analysis of the environment - evaluation of potential opportunities and threads - evaluation of internal resources - evaluation of ‘value systems’ of the decision makers. The Objectives need to be more precise, and measurable in some way. For example, it might be decided that the C.N.C. should expand, in order to improve its service to members. And objective could be set for example, that membership should be doubled over the next four years and overall savings (turnover) should increase by two times over the same period. But, what do we mean by ‘analysis of the environment’? In the C.N.C. context we are talking particularly about characteristics of members and non-members (potentional members!) in the community: their age profile, occupations, demand patterns, and so on. When looking at members it is likely that different groups of members want different services - for example, some may want to operate budget accounts to pay off recuring bills, othrs may want special assistance to escape the clutches of loan sharks, and so on. This process of analysis of environment is the starting point for planning. Yet conditions are constantly changing, so the notion of the clear starting point - except when the C.N.C. is first being set up - is not wholly accurate. In a sense the process of formulating strategies is continuous, because the environment is changing. Opportunities and threats The next step is to identify opportunities and threats. Take a C.N.C. in a market town where the membership has mainly been employees from a agro-processing factory. The opportunity exists to attract farmers in the surrounding country areas:, the threats may be, for example, strong traditional links with the banks, or farmers’ suspicions about getting involved in a town-based organisation. A strategy needs to be developed, try to attract farmers by overcoming the obstacles in the way of their joining. Included in opportunities and threats should be an analysis of the external environment, i.e. those factors influencing the organisation which it cannot really control. They would include Government regulations and policies, broad changes in demand patterns or demografic structure, actions of competitors, etc. Even though the organisation cannot control these factors it can respond to them in an effective way. Internal resources As well as opportunities and threats, the organisation needs to look at its own strength and weaknesses - the evaluation of its internal resources. Do we have enough staff to achieve our Objectives? Are they well enough trained? Are we located in the right place? Are we publishing ourselves properly? And so on. If this internal evaluation shows that the resources do not exist to achieve the Objectives within the proposed time frame, the C.N.C. needs to do one of three things. Exercise: What are these three possible steps? 1. 2. 3. Answers: Either: 1. arrange to get the required resources (more staff, etc.), or 2. modify the Objectives, or 3. keep the Objectives but extend the time frame. The point is, the Objectives must be realistic and flexible. The steps we have discussed above are often referred to as SWOT analysis: Strength, Weaknesses, Opportunities, Threats. Objectives Objectives are measurable by points on the scale between two extremes and each step design will contain the detailed description how to judge following check points: Extreme Demand Added value Promotion External control Integrity of the system 1 1 1 1 1 2 2 2 2 2 Scale 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5 Extreme Supply Failures Discipline Self-evaluation Personal integrity Each point of the scale has certain state, which is measurable: (1) The level of participant’s knowledge of demand and supply relation can be measured by the counter installed in the Netscape window. It is expected that each participant, instead of password, have to write the right word in the empty space in the text. This allows him or her to open more detailed level of information. When participant don’t write the right word the help displays the broader explanation, which will teach participant the correct missing information including the right term serving as the password. Counters will be installed on each knowledge level. The knowledge level 1 is the ability to distinguish different strategies. 2 means that analytical and design based methods are clear to the participant. 3 means that sharing of interests and responsibilities in the company is clear, 4 means that organisational change is clear, 5 means that personal carrier development principles (employment or entrepreneurship, demanded and deliverable personal benefits, recognisable features) are clear. (2) The added value and failure relation must be measured before failure occurs. It means that points on the scale are levels of preventive and offensive measurements. When team prefers information more than experience gets 1 point. This will be measured by results the group of course participants obtained in the management game. When team prove profitability of the selected topics get 2 points. When misusing and loses of information in management structures will be prevented, the team gets 3 points. When the right marketing concept (mission, resources, objectives, programmes, teamwork or management in existing companies) will be defended, the team gets 4 points. When contracts for a special actions will be defined, as a sign of offensive strategy, the team gets 5 points. (3) The promotion - discipline relation project value can be measured by points on the scale where: - the value of strategy and prepared topics and consortia is 1, - the value of the comparative analyses, of related case studies, and plan is 2, - the value of analyses of local conditions in relation to known case studies which are included into quality norms is 3, - the value of information system and action plan is 4, - value of agreements is (geographical, management, GPS based) information system exceeding the frame of organisation is 5. (4) The external control – self-evaluation relation value can be measured again after points on the scale where 1 is consultancy, 2 is the art of teaching, 3 is examination of teaching, 4 is experimental learning and 5 is instructional design. (5) The system - personal integrity relation value can be measured again by points on the scale where 1 is first self-evaluation, 2 is periodical evaluation, 3 is summative project or defended project or other intangible output, 4 is finished scientific work based on described methodology and 5 is gained grant, contract, or credit with the value of at least yearly salary for each team member. Some or all above mentioned objectives can be selected by the course participants. Beginners will start with knowledge objectives. All objectives in one project is the level of constructive and stabile multinationals. Topics and team selection depending on above mentioned measurable criteria is fully in hands of participants who will design their life long education and grow their personal influence. Values The final step in formulation involves examining the values of the decision-makers (usually the Board). We have seen earlier examples where value systems had positive or negative effects on planning. The worker C.N.C. is a positive example where the workers as a whole are strongly committed to participatory decision-making, and they designed structures and processes to make participatory planning and decision-making effective. In contrast, the East-End News example showed how value of systems which rejected hierarchy but put nothing in its place resulted in failure. In C.N.C., the most committed and vision of Board members, therefore, are essential ingredients for strategic planning. We have now looked at the main elements of the first part of the strategic planning, i.e. formulation. In some organisations that is the only part of the planning process which gets detailed treatment, with implementation being left to the manager and staff, and perhaps review being done after a few years. Of course there does need to be division of responsibility in strategic planning, but it is still important to give equal importance to each of three steps in the planning process. Exercise: Suppose you are involved with a group of people wanting to set up a C.N.C.. You are defining the Objectives as part of your plan to get the C.N.C. established. List three such Objectives, remembering that they should be measurable in some way. 1. 2. 3. Answers: You might have included some Objectives along the following lines: - we aim to have at least 40 people regularly involved by the end of six months - we aim to have made savings totalling USD 20,000 by the end of six months - we will have identified a suitable premises by the end of six months - we will have had at least two public meetings in the community within six months - we will have printed and distributed 500 leaflets about the proposed C.N.C., and used other local media, within six months. All of these Objectives contribute to the overall aim, which is to form the C.N.C.. Finally, in this section, we will look briefly at who makes planning decisions. Who does the planning? Here again, we have to distinguish between short-term and strategic planning. In the early stages of development, the Board will be involved in short-term planning, and in later stages paid and volunteer staff, ultimately, including a manager, may take primary responsibility. Responsibility for strategic planning lies at different levels. Ultimate responsibility lies with the Board: it is responsible for the overall direction of the C.N.C., which includes determining long-term objectives. Others set up temporary project teams to investigate a specific aspect of the strategic plan. All such bodies report to the Board. In some C.N.C., although the Board has ultimate responsibility, the manager may also play an important part in plan formulation, since he/she is sometimes in a better position to appreciate whether the C.N.C. needs to make major changes. What about the general members? There is no formal mechanism for general members to get involved in strategic planning, other than through discussion at AGM. It is hard to involve members in any structured way once the C.N.C. has grown - and that is why C.N.C. have a representative management structure, where authority of the Board to make strategic decisions is derived from the members. Even so, there are informal ways of at least finding out what members think and we discussed these in the last section. However, members can be involved in strategic planning on specific issues, for example, through small group discussions as part of a larger meeting. This is not usually done in the C.N.C. movement but there is no reason why such meetings could not be developed. Having discussed plan formulation, responsibility for implementation will be spread more widely and will tend to involve staff and volunteers to a greater extent. We will discuss this in section 6. Exercise: Look at the following planning tasks, and state who, in your opinion, would be primarily responsible for formulation of plans in these areas. Responsibility might be shared equally, in which case you should tick both boxes. Manager Board 1. Fixing annual savings target 2. Recruiting additional full-time staff 3. Planning training of staff members 4. Deciding on opening hours 5. Computerising transactions 6. Setting long-term membership targets Answers: Not all of these are clear cut. Indeed that is the reality, because it depends on the stage of development of the C.N.C., the respective abilities of Board and manager and how they work together, etc. I would suggest the following responsibilities as a general situation, although you might disagree: Manager Board 1. Fixing annual savings target X 2. Recruiting additional full-time staff X 3. Planning training of staff members X 4. Deciding on opening hours X X 5. Computerising transactions X X 6. Setting long-term membership targets X Q: Suppose that you are one of a group of people wanting to set up a C.N.C. in your local college. The aim would be to provide services both to staff and students. Carry out SWOT analysis of this proposal, listing four issues under each heading. do you think, on the basis of the SWOT analysis, that the idea of membership for both staff and students needs to be modified? Summary of Discussions In this section, we dealt with the planning function of management. First, we explained why both short-term and strategy planning are essential to the survival and growth of the C.N.C.. Then we discussed the ‘What’, ‘how’, and ‘who’ of planning. Each of these were viewed in terms of both the short-term and the strategic long-term. We introduced the concept of a mission statement and of quantifiable Objectives. We saw the effect of both the value judgements of the decision makers and of the external environment and the need to take both into account in the planning process. And we used the technique of SWOT analysis to identify: - strength - weaknesses - opportunities - threats. This takes us into our next section, organisation and implementation. Organisation and implementation When you have completed this section you should be able to: - state some of the important principles needed for successful implementation - evaluate the appropriateness of the management by Objectives technique for C.N.C. - explain the roles of different members of the C.N.C. in the implementation process. Elements of implementation Implementation involves action planning: deciding on the actions needed to carry out the plan. Without action, the plan is worthless. But action must be co-ordinated. There are some key elements in the implementation process, and some key words: - responsibility - authority - accountability - communication - collaboration - skills. Taken together, these elements provide a framework for implementation. Let’s look at each of them in turn. Responsibility for particular components of the plan has to be delegated to certain members of the team who will carry it out. At the same time, these members must be given the authority to carry out the task: responsibility without authority is not adequate as it might result in the person doing a lot of work which other team members would be free to ignore. So, responsibility and authority must be given together. Who does this? Well of course it depends on the issue. If it is a completely new project, the Board may set up a temporary project team, which will have the responsibility and authority from the Board to implement plan. If it is, say, a change in working hours, then the Board will probably give responsibility and authority to manager to make sure that the new working hours are introduced and staff and volunteers organised for this purpose. Accountability is necessary once someone has been given some power (authority). As much as possible it should be based on self-discipline. For instance, a reporting time can be established and, within that period, the person(s) undertaking the task should not be subject to undue interference, unless it is clear that something is going drastically wrong. Consider the situation where a group of people are discussing the possibility of establishing a C.N.C.. They agree that one of them will visit houses in the community to ascertain the level of interest. He is to report back in three weeks’ time. After one week there are several complaints about a persistent visitor who as good as put his foot in the door, so anxious was he to ‘sell’ the message. The group hurriedly get together and stop him from making any more visits. It is quite clear that the person had completely the wrong idea, ignoring the voluntary, mutual benefit principles of the C.N.C., and going for the ‘hard sell’. The group had to step in. But in a sense the group was also to blame for sending someone out who was clearly not properly prepared. The example, in fact, demonstrates the need for mechanisms of feedback and control (although these will be covered in more detail in the next section. The group will have to look at its strategy again: - did they give responsibility to the wrong person? - was he given the wrong brief or misunderstood it? - was the external environment unfavourable? For example he might have gone to an area where previous experience had made people wary of ‘door-to-door’ salesmen. Also the importance of communication should be clear from the example. It is possible that wrong idea was given to the person about how he should approach people - or perhaps he wasn’t really given any clear idea at all. You will be discussing forms of communication in detail in a later Unit, here we will just point out its importance. Collaboration is implied by teamwork: everyone may have their own responsibilities, but they need to interact with each other so that their efforts jointly result in the intended goal. This is perhaps particularly important in people-centred organisations where much depends on voluntary effort, and where each person needs the support of others to make their voluntary effort worthwhile. Exercise: Discuss one essential difference between people-centred organisations and private businesses (we might call them profit-centred or capital-centred organisations) in relation to collaboration in the meeting of the Objectives of the organisation. (We discussed this issue in section 1 of this Unit:, do you remember?) Answer: What we are looking for here is the aspect of motivation. In a private business, the Objectives of employees doing their job are quite likely to differ from the Objectives of the business itself (as defined by the Board). For employees, the main motivation is likely to be material - what they get paid for the job - although there may also be other motives. In people-centred organisation such as credit unions it is more likely that people, whether volunteers or paid staff, are motivated by the aim of developing the organisation: they have a commitment to what their credit union is trying to do. But commitment should not be taken for granted, as we will discuss in the latter sections on leadership and member relations. That is why mutual support or collaboration amongst members is so crucial. The last element in implementation that we want to discuss is skills. We looked in section 2 at C.N.C. management and collective structures. Some people working in collective-type structures believe in members of the collective developing a wide range of skills through job rotation, on-the-job learning, and so on. This approach may be possible but it may also be inefficient. For example, if the organisation wants to set up a system for financial control, and one member is trained as an accountant, it makes sense to use the skills of that person. If a C.N.C. wants to computerise its transactions, it will be helpful to have someone who knows about computers on the project team. In other words, the organisation should make good use of its members’ skills - that is not just people, but people combining their skills, that brings about successful implementation. Of course other members can, and should, be trained to develop their skills - that is another element of strategic planning and management. But at any one time it makes sense to use the skills that already exist. Management by Objectives (MBO) Management by Objectives gives pointers to how strategic management could be undertaken. It has been defined as: A process whereby the different levels of management in an organisation jointly define their goals and within the framework of these goals define and agree each individual’s major responsibilities in terms of results expected of him and her. Brian Sherry, Irish League of Credit Unions Review, April/May 1993. MBO is used when organisation is deciding how to achieve its agreed Objectives (defined, usually, by the Board). It essentially involves those who lead the planning process, agreeing a programme of action with each individual who will be involved in implementing the plan. The emphasis is put on developing an agreed programme, through discussion, not imposition. The programme would include: - a set of goals for the individual to achieve - a means of measuring performance - any special provisions, such as training, to help the individual to achieve the goals. Having agreed the Objectives, the next step is to decide how to carry them out. For example, suppose one objective is defined as: ‘to get ten members to open budget accounts over the next six months’. How can this be done? By personal discussion? A leaflet in the C.N.C.? An article in the news letter? The means have to be agreed. At the end of the agreed time period for each objective a meeting is held to review the results. If the Objectives have been met, this should be recognised and rewarded, at least in terms of verbal praise. If Objectives have not been met, as we saw earlier there may be number of reasons, including external factors which the individual could not control. More realistic Objectives may have to be set. Some elements of MBO appear to fit in with what we have already discussed. But there are some drawbacks. Exercise: What do you think might be two of the drawbacks of management by Objectives? Answers: You may have included two of the following: - some organisations rigidly apply MBO and impose severe penalties if targets are not met - such an approach runs counter to C.N.C. philosophy - Objectives may be set too low, so that achievement is more certain but not very challenging - individual’s Objectives may not fit in with the overall Objectives of the organisation. It is this last factor which in particular limits the effectiveness of MBO as a management tool for C.N.C., because the strength of C.N.C. lies in harnessing the combined effort of people in teamwork. The concept of synergy - the extra benefits gained from people working together for a common objective - is highly applicable in C.N.C., and would be lost if MBO were to be rigidly applied. The conditions for useful application of MBO to C.N.C. are that it should: - link individual Objectives with strategic aims of the organisation - focus on priorities - be flexible and tolerate failure - re-emphasise the overall ‘mission’ of the C.N.C. - be set within a frame of teamwork, i.e. individual Objectives should be complementary. Exercise: A C.N.C. has set some overall Objectives for the coming year. They are: - increase membership by 20 % - increasing the level of savings by 25 % - setting up mini-credit unions in five schools - reducing overdue loans to 3 % of the total loans given. One volunteer discusses her Objectives for the year with manager. They agree the following: - to give four talks to the public on credit unions during the year - to do counter work once a week throughout the year - to talk to schools during the year. Do you think this is an example of MBO? Is a satisfactory process? Answers: Well, it is MBO in the sense that individual Objectives have been agreed. But there are deficiencies: - some of the Objectives were not matched by measurable targets: therefore the level of ‘achievement’ cannot be measured - there is no obvious collaboration with other members: for example, a small team could be formed to help establish the mini-credit unions in schools. Here, the volunteer agreed only to talk to schools, without any commitment to any concrete results from those talks. Such vagueness is not very productive. Who implements? In this final part we look at who actually implements plans. You will not be surprised that there is no single answer, since it depends on the issue being considered. However, there is one view that proposes the following division of responsibility: Responsibility Planning Implementing Board X Manager X Planning is done by Board. Implementing is done by the manager (and higher staff). Some C.N.C. may follow this strategic planning approach, but there are dangers in being too rigid in the division of responsibility. Exercise: What are those dangers? Can you suggest one problem caused by too rigid a division of responsibility? Answers: You may have chosen any of a number of positive problems. Here are my three suggestions: - the Board’s plan may not be realistic, yet it may expect the manager to implement it anyway. We might describe this situation as ‘power without responsibility’, which can emerge if there is a poor relationship between the Board and manager. - the manager may have a valuable input into the plan formulation process, if he/she is given the opportunity - equally, some Board members may actually have a valuable role in the implementation of a plan. Who else is involved in implementation? again, it depends on the issue. If the plan is concerned with operational improvements, extending opening hours for example, then implementation primarily rests with the manager and staff (including volunteers). If the plan is concerned with other long-term developments, for example, computerisation, or moving to new premises, a greater number of steps need to be taken, by different groups of people. The computerisation process, for example, could involve the following steps: 1. A policy decision by the Board in consultation with the manager, to introduce computerisation. 2. The Board sets up a project team, perhaps including the manager and one Board member, to investigate the best way to introduce computerisation and to make recommendations to the Board. 3. The project team carries out the work, talks to different suppliers, and after three month presents the report with a recommendation to the Board. 4. The Board discusses and approves the proposal, and appoints one Board member to seek quotations from suppliers. 5. Within two weeks, a further Board meeting is held at which a quotations is accepted: a letter is drafted asking the supplier to proceed with installation. The supplier is also required to give training to staff members within the agreed price. 6. The system is installed and tested, and training is given for one month, after which the computerised service is made fully operational for members. We can bring together a number of the issues involved in implementation by converting the above example into a diagrammatic action plan, as follows: Activity Month 1 2 3 4 5 6 DECISION ON COMPUTERISATION -- BOARD PROJECT TEAM ANALYSIS ------------------- PROJECT TEAM BOARD MEETING -- BOARD SEEK QUOTATIONS BOARD MEMBER ---INSTALLATION SUPPLIER ---STAFF TRAINING SUPPLIER/STAFF -----START SERVICE ---------On the same diagram we can show the activities in sequence, how long each will take and who is responsible for carrying them out. This is a simple but useful way of co-ordinating the actions involved in implementing a plan. Exercise: In the last exercise of section 4, you identified who was primarily responsible for planning of activities below. Repeat the exercise by indicating who is responsible for implementation of these activities. Action Manage Board Others r 1. Ensuring annual savings target 2. Recruiting additional full-time staff 3. Training staff members 4. Implementing changed opening hours 5. Computerising transactions 6. Achieving membership targets As with the previous exercise, the answers are not always clear-cut, but we suggest the general pattern of responsibilities shown in the following table: Action Manage Board Others r 1. Ensuring annual savings target x x x 2. Recruiting additional full-time staff x 3. Training staff members x 4. Implementing changed opening hours x x 5. Computerising transactions x x 6. Achieving membership targets x x x The attainment of targets for savings and membership depends on existing members and on new ones joining. Therefore, these targets are not totally controllable by anyone involved in running the credit union. However, all can make their contribution by communicating the benefits of membership. Q: The Board and the manager are discussing the need to move from their rented offices to a larger premises in order to accommodate their planned expansion of services. They decide that they will move, and a project team is set up to investigate all the steps to be taken. They aim to be in the premises (which they will buy) within nine months, and they ask the project team to report back to the Board within two months on a suitable premises and the other details needed to complete the move. Draw up an action plan, showing the activities, duration and division of responsibilities for the move. Use a diagrammatic format. Summary from discussions In this section we dealt with a vital management function - implementation. First, we outlined some of key elements in the implementation process that help ensure that plans are put into action: - responsibility - authority - accountability - communication - collaboration - skills. We looked at the method of ‘management by Objectives’ (MBO) and how the defining of goals and the achievement of responsibilities for individual contribute to the achievement of the overall Objectives of the organisation. We considered how appropriate MBO is for the management of C.N.C.. Finally, we discussed who is responsible for the implementation of plans in a C.N.C. and the division of responsibilities between the various members. In the next section we will cover the last of the classical management functions: control. Control When you have completed this section you should be able to: - state some of the major control functions in a C.N.C. - explain the mechanisms by which management is accountable to the members of a C.N.C. - explain the roles of different actors in C.N.C. in terms of fulfilling the control function - evaluate the importance of conducting a social audit as a measure of the C.N.C.’s performance. You should read and understand to following headlines: Elements of control Mechanisms of control Who controls? Social audit Q: Suppose you are on the Board of a C.N.C., and you are all agreed that one of your Objectives for next year is to increase membership by 25%. To that end you draw up a plan involving various forms of publicity and mobilisation of existing members. The plan is carried out, but to your amazement membership barely increase at all over the year. What do you propose to do next to tackle this issue? Summary from Discussions This section demonstrated that control is a vital management function. Through evaluation and feedback, control is a mechanism that helps ensure that worthwhile plans are being implemented in the right way. We described the control process and saw that following the monitoring of performance against set goals, action should be taken to revise the goals. We looked at quantitative and qualitative performance indicators and the distinction between key performance areas and key indicators. C.N.C. use a number of control mechanisms and control structures in their operations and we looked at specific example of basic control. The question of who controls was covered by looking, in turn, at the control responsibilities of the Board, the executive officers, the manager and the committees. Finally, we considered the use of a social audit to parallel the financial audit as a means of measuring the performance of a C.N.C. 3. Production and Service Resource Oriented Company: Diagnostics Approach You should read and understand to following headlines: When you have completed this section you should be able to: 1. Explain how operations work in both manufacturing and service organisations 2. Discuss the four goals of operations management: productivity, quality, speed, and flexibility 3. Explain five characteristics of the design of operations systems: product design, facilities layout, technology, facility location, and capacity planning 4. Describe techniques for inventory management 5. Discuss reengineering and its implications for organisational behaviour Definitions Operations = The process through which an organisation transforms inputs into goods and services Operations management = The application of management functions to achieving effective and efficient operations Technical core = The combination of operations management and the transformation process Operations systém = The systém that transforms inputs into outputs Manufacturing organisation = An organisation that produces tangible products Service organisations = Organisations that transform inputs into intangible products Productivity = The ratio of outputs to inputs Total factor productivity = The ratio of outputs to all the resources used to create them Direct labour productivity = The ratio of outputs to the labour used to produce them Capital productivity = The ratio of outputs to capital used in production Flexibility = The organisation’s ability to modify its operations systems with little cost in terms of time, money, or quality Strategic flexibility = Ability to adapt to new objectives Product design = The process of making decisions that define the goods and services the organisation will produce Design for manufacturing = Designing products to meet the criteria of producibility, low costs, high quality, and reliability Facilities = The buildings and equipment used for producing, storing, and distributing products Product layout = The arrangements of employees and their equipment according to function in the order required to produce a product Process layout = The arrangement of employees and machinery according to function, with each job routed through whatever workstations are needed Fixed-position layout = Making products in a fixed location, with employees and machines moving around as needed Cellular layout = The arrangement of employees and equipment into cells responsible for an entire work process Flexible manufacturing systems = Production processes that link high-tech machinery and computer systems Reengineering = A complete review of the organisation’s critical work processes and redesign of those processes to make them more efficient and able to deliver higher quality Diagnosis is important for period of strategy implementation. Diagnoses should show if strategies like speed, innovations, life expectations, competitive position, or global reach and exploitation are sufficient to gain competitive advantage. Further, the strategy should be related to the place of destination, programs and the service delivery. Marketing strategies, mentioned here should follow resources management balance. Resources management is time, production, product, and personal, or group identity based. Manufacturing - service continuum Manufacturing: Top Management Service: conformance delivery flexibility customer productivity Time can be saved by investments (defensive strategy), or responsibility of skill people (offensive strategy). Defensive strategies and Offensive Feedback by general pittfals identification Innovation Operations Innovation Investment: Top management succeeded Underpaid Project Movement: Steering committee succeeded Improvements Innovation Operations Free of charge projects: Champions shown up skills Stolen/punished projects by Advisers Autocratic Offensive strategies are possible only when the amount of implemented projects is big enoughorand well steered. managers Project movement management can be done by steering committee or by participation in decision making. Compare the structure of conventional company and C.N.C looking on this aspect of participation and the two pictures below. Conventional company C.N.C. Personal identity managed in time is the necessary condition of participation in decision making. It should be strengthened looking on an importance and urgency of events from long term perspective. Important I. Actions: Crisis Urgent problems Scheduled assignments Urgent III. Activities: Cancelling of visit Some mail Some meetings Coming time fixed events Loved activities II. Actions: Prevention: Strengthening of production capacity Skills training Opportunities discovery Planning, regeneration Not urgent IV. Activities: Trivial daily agenda Some phone calls Wasting time for useless activities Unimportant Money is accumulated time. Therefore, costs should be decided upon a proper quality approach selection Expensive quality high Costs Jakost Quality high Cheap quality high Costs Quality high All schemes mentioned above enable to measure and diagnose the real state of company management. The list of dimensions is not complete. Quality Systems for Service Organisations When you have completed this section you should be able to: - outline the main points of the service quality marks and ISO 9000 - the two main quality systems - outline the key principles underlying a quality systems and describe the basic structure of a quality system - list the three main processes involved in delivering a service and describe their part in the development of a quality system - establish a framework for measuring service quality. Measuring service quality Exercise: Before we have given you and example of a quantitative measure and a qualitative measure which describe the quality of C.N.C. services. Can you give another example of each? Quantitative: 1. Average waiting time to deposit delivered product 2. Qualitative: 1. Survey of members’ opinions about the levels of comfort inside C.N.C. premises, perhaps just on the basis of ‘comfortable’ or ‘uncomfortable’. 2. Answers: You might have suggested one of the following: Quantitative: 1. Average length (number of days) of time for (loan, investment) approval. 2. Number of staff working at peak periods (this could be said to be a measurement of input rather then of performance, but it has consequences for service quality). Qualitative: 1.Ranking of member satisfaction with staff competence and courtesy, from ‘very good’ to ‘very poor’. Quality indicators: Exercise: Below is and example of a service design feature in a C.N.C., and alongside the example we have given you an indicator against which ‘quality’ can be measured. Can you suggest another? Service Design Feature: Indicator of Quality: 1. Internal layout in terms Maximum waiting time per member of number of counters 2. We might suggest the following as examples: - Process of approving (loans, ...) - an indicator could be average number of days needed for (loan) approval. - Use of manual or computerised systems for entering details of transactions in passbooks - indicator could be average speed of transactions, or, say, number of mistaken entries per thousand transactions. - System for dealing with members’ complaints - an indicator could be speed of dealing with complaints, as recorded on a written complaints sheet. Quality dimensions: Exercise: What indicators could be used to measure output quality (i.e. the quality of the service provided to the customer)? Answers: Output quality could be measured by, for example, the number of complaints received, from customers. Another ‘proxy’ measure for C.N.C. could simply be the volume of service delivered or products sold over particular period, on the assumption that poor quality of service will discourage some members from buying service/product (loan). However, there could of course be other reasons for such a reduction. Impact: Exercise: Suggest possible indicators of service quality for C.N.C., against each of the five dimensions: You should read and understand to following headlines: Process: Structure: Outcome: Impact: Answers: We have though of the following: You should read and understand to following headlines: Measure service performance relative to key financial ratios discussed in Unit 4. Process: Monitoring of factors such as length of time taken to approve (loan) applications. Structure: Measurement of physical capacity, such as number of counters relative to number of members using credit unions per week, number of paid /volunteer staff relative to membership, and so on. Outcome: Measurements of volume of products purchased (loan taken), extent of overdue (invoices, loans), and so on. Impact: Measurements such as proportion of population in common bond area who are members, number of youth members, and so on. Q: Some people may feel that the fact that C.N.C. are owned by their members is in itself an adequate guarantee of service quality: drawing up of detailed systems and documentation is unnecessary. Comment on this assertion, and suggest four reasons why formalised systems and documentation might be needed to guarantee quality. When you have completed this section you should be able to: - outline the main points of the service quality marks and ISO 9000 - the two main quality systems - outline the key principles underlying a quality systems and describe the basic structure of a quality system - list the three main processes involved in delivering a service and describe their part in the development of a quality system - establish a framework for measuring service quality. You should read and understand to following headlines: Development of quality system - ISO 9000 Quality system principles Operational elements of a quality system Measuring service quality In this section we have focused on the issue of service quality in service organisations. We began by discussing the major developments in international quality standards, and their use in the EU in the context of the Single European Market. We then moved on to discuss the main principles of a quality system. We discussed in some detail the three main elements of a quality system, namely: - management responsibility - personnel and material resources - the quality system structure. In the next part we looked at the operational elements of a quality system, and in particular at three main service processes: - the marketing process - the service design process - the service delivery process. Finally, we introduced the issue of measuring management quality. We discussed a framework for measuring service quality. In the next section we will look at another concept linked to quality, empowerment. Regional Management Projects: Regional management is becoming more and more important. It is expected that Common Agriculture Policy of EU, taking half of EU budget, will be substituted by regional development based programmes. See readings and URL=http://www.regeneration.detr.gov.uk/policies/area/2.htm Organization models SEKCTOR DIVIDED TASK DIVIDED SECTOR SECTOR SECTORS SECTOR BACK LAND FRONT BAKLAND FRONT INTEGRATED DECENTRALIZED SECTORS GROUPS OF SPECIALISTS 1 ABCD © 1998 KPMG BACK LAND FRONT BACK LAND 2 3 FRONT Norwegian KPMG don’t see the quality as the main problem of regional management and is ready to increase quality by suitable organisational structure, continuously adapted after results of reviewing. KIPLINGS QUESTION BATTERY WHAT are we doing and WHY is it done WHERE is the task carried out and WHY there WHEN do we solve the task and WHY do we do it at this time HOW do we solve the task an WHY do we do it in this way WHO is responsiblee for the task and WHY this person/group/department You should explain why every second question is ‘why’. SUMMARY Front service - service near the customer/inhabitant/user Front service - more interesting work Consensus about the destination level Split the main tasks in to “sub tasks” Focus on recruiting and education of staff Contact with the back offices Project plan is necessary The front service is more problem of marketing. Therefore, let’s look closely on decision making, leading to consensus, and on meetings which assign tasks to people from front service and back offices. Assignment: Supplying Conventional Organisations When you have completed this section you should be able to: - describe the essential characteristics of different management approaches - analyse the roles of technology and type of product in determining the type of organisational structure development - explain the meaning the ‘management-production continuum’ and analyse different management approaches in terms where they would fall on this continuum - distinguish between conventional and C.N.C. management in terms of the linkage between ownership of an organisation and production within it. You should read and understand to following headlines: Alternative views about management Organisational structures The time-production continuum Different forms of organisations Assignment II: Supplying C.N.Cs – co-operatives / networks / corporations – further abbreviation C.N.C. is used C.N.C.s, networks and corporations consist of independent human and organisational elements. This is the difference compared to conventional organisations. You should be able to: - distinguish between collective C.N.C. management and representative C.N.C. management - explain the mechanisms by which C.N.C. management is accountable to the members - describe ways in which member-involvement in C.N.C. management can be widened. You should read and understand to following headlines: Types of C.N.C. management structure Accountability of C.N.C. management to members Responsibilities of manager and board of directors In this section we explored the issue of C.N.C. management in general. First we discussed the difference between collective C.N.C. management and representative C.N.C. management and compared the conventional hierarchy with the inverted hierarchy of the representative structure. Then we moved on to explain the mechanisms by which C.N.C. or network management is accountable to the members and the key role of information and communication. Finally, we discussed a number of structures and mechanisms that can be used to encourage broader member involvement in C.N.C. / network management including: - job rotation, - sub-committees - work teams - project teams. We will now go on to the rest, which is more specifically concerned with management in service C.N.C., starting with their management structures. Assignment: Management structures and tasks You should be able to: - describe appropriate management structures for service C.N.C. in both early and mature stages of development - list essential service C.N.C. management tasks for both short-term operations and long-term strategic management - explain the relationship between the roles of directors and of the manager in mature service C.N.C. - identify specific ways in which members can participate in management process. You should read and understand to following headlines: C.N.C. management associations Management tasks in C.N.C. associations Responsibilities of manager and the Board of directors Widening member involvement in management Summary In this section, we looked at management issues specifically affecting service C.N.C.. We examined the growth cycle for a service C.N.C. and its five phases: - nurturing - energising - peak - relaxation and review - renewal or decline. Different management structures are required for different phases. Simple structures are appropriate for early stages while in mature development more representative structures are necessary. Similarly, management tasks can be divided into short-term, day-to-day activities and long-term, strategic roles. The division of responsibilities for these tasks, between the Board of Directors and the manager is crucial and we identified some potential problem areas. Finally, we examined ways in which the member can have a wider involvement in the running of service C.N.C. through formal meetings, informal communications, committee membership or voluntary workers. We have now finished this section, and we can move on to a more detailed examination of management functions in the following sections, starting with planning. By describing the different types of organisational structures that exist, we were able to identify the different management approaches used in each one. Then, we briefly examined the management-production continuum, which can be used to illustrate the balance between management and production in different organisations. Finally, we discussed alternative organisations such as voluntary, non-profit and C.N.C. organisations, concluding by comparing C.N.C. with conventional organisations. Much of the discussed in this section has been related to conventional organisations. 4. Information Processing in Marketing Management: You should read and understand to following headlines: Theory of Information I = H – Hi-1 H = - SUM pi log2pi Definition: Information is the difference between uncertainty before and after the message was obtained. Previous uncertainty is subtracted from actual uncertainty. Questions: See picture A-D. 1. Where uncertainty based on probability is bigger A or B? 2. Where uncertainty based on unequal probability is bigger C or D? A B C D - Media Richness Theory Rich media example is discussion for example, which is valuable for developmentally difficult objectives. Poor media is table filled by numbers for example, which can avoid or solve risky situations. - Information Management: operations, work-flow, projecting Inspect keywords like re-engineering, management science, logistics, project management at http://www.tady.cz/rizeni/strana2.htm When you have completed this section, you should be able to: 1. Discuss the different types of technology in organisations 2. Identify and describe the different types of information systems 3. Explain the importance of integrating technology and information to achieve a sustained competitive advantage Definitions Technology = The knowledge, procedures, and equipment and organisation uses for all of its processes, including marketing, distribution, human resource planning, and operations High technology = The applications of technology that are new at the time the term is being used Automation = The replacement of human labour with equipment Expert systems = Computer systems with software incorporating the decision rules used by people deemed to have expertise in a given area Information technology = Electronic hardware and software used for communications and information processing Network = Combination of computers that share access to databases and a means to transmit information throughout the systém Small-batch production = A manufacturing technology that involves producing goods in small quantities tailored to customer specifications Mass production = Producing uniform goods in large batches or long production runs Continuous process production = Producing the same product over an extended period of time using automated equipment Flexible cell production = a flexible manufacturing systém in which groups of workstations (the cells) can be reconfigured and reprogrammed to meet changing needs Mediating technology = A service technology in which the organisation links together clients with complementary needs Long-linked technology = A service technology in which employees perform a standard series of simple tasks, with the job moving from one employee to the next until the process is complete Intensive technology = A service technology in which employees adjust the work process in response to feedback from their customers Information systém = A set of resources and procedures dedicated to gathering and organising data and disseminating information Data = Unanalysed facts and figures that do not necessarily have and significance on their own Information = Data placed into a useful context Transformation-processing systém = An information systém that handles routine, recurring transactions Management information systém (MIS) = An information systém that provides information required for making management decisions Decision support systém (DSS) = An information systém that searches for, manipulates, and delivers information on an interactive basis Executive information systém (EIS) = An information systém tailored to the decision making needs of top management Value chain = An organisation’s activities that are interdependent and contribute to the creation of value, consisting of inbound logistics, operations, outbound logistics, marketing and sales, and service Value systems = The systém of activities that links the activities of suppliers, producers, distribution channels, and ultimate buyers Electronic data interchange (EDI) = A computer systém that enables two or more organisations to share information directly Information Management: operations, work-flow, projecting Definitions Computer-integrated manufacturing (CIM) = The use of a computer system that integrates automated facilities by controlling the flow of resources throughout the plant as well as the machines that perform many production tasks Computer-aided design (CAD) = The use of computer software to design products Computer-aided manufacturing (CAM) = A systém used with CAD to direct the production of particular product Virtual reality = A three dimensional computer-generated environment that gives the user a sensation of being part of that environment Capacity = The maximum output the organisation can produce with its existing facilities Raw material inventory = The parts and materials to be used in producing goods and service Work-in-process inventory = Unfinished products still in production Finished-goods inventory = Items that have passed through the entire production process but have not yet been sold Material requirements planning (MRP) = A computerised systém that monitors inventory levels for related items and reorders those items as needed to meet estimated future needs Manufacturing resource planning (MRP II) = A systém that creates a financial model for use in production scheduling, human resource planning, material purchasing, control of cash flow inventory, and distribution Role of Information Technology When you have completed this section you should be able to: - describe the main uses of computers in the service sector in general, and in the C.N.C. in particular - outline the main benefits to be derived from management information systems - explain the relative merits of networking by C.N.C.. You should read and understand to following headlines: Uses of computers in the service sector Management information systems The potential of networking In this section we considered the uses of information technology in C.N.C.. We begun by looking at the increased use of computers in the service industry in general, and their primary uses in C.N.C.. We addressed the debates for and against the use of computers in C.N.C. and identified some of the problems which emerged from the way in which C.N.C. independently installed computer systems. Next we looked at the potential for management information systems, in particular noting the potential for computers to be used as decision support systems. Finally, we addressed the use of information technology in C.N.C. in future, and in particular the potential for networking. We noted that while networking is technically possible, the real issues relate to the philosophy of C.N.C. and how the movement sees itself developing in future. In the final section of this unit we will consider some of personnel and industrial relations issues within C.N.C. as another aspect of operations management. Exercises: The Uses of Information Technology Exercise: Take below three examples. In each case, what do you think are the main uses of computer technology? (e.g. carrying or transactions, record keeping, etc.) Financial service sector: Bureaucratic organisations: Car repair and maintenance service: Answers: You will probably have come up with some of the following uses: Financial service sector: - the actual conducting of financial transactions (for example stocks and shares, foreign exchange transactions) - the clearing of financial transactions - the keeping of financial records Bureaucratic organisations: - primarily record keeping - stock control/purchasing - accounting Car repair and maintenance service: - primarily stock control/purchasing - record keeping - maintenance of quotes for specific jobs, and so on. Computer technology - C.N.C. Exercise: Draw up a list of the main uses of computer technology in C.N.C. Answers: Most of the use of computers in C.N.C. relates to the following functions: - transaction functions - bureaucratic functions - work-flow management Exercise: What is the main danger with installing a computer system without having properly evaluated or researched its contributions? Answer: There is the danger of wasting resources in installing an expensive system which may be capable of doing far more than you want it to do, but perhaps does not well what you really wanted it for! Exercise: Suggest three ways in which a C.N.C. approach to the installation of computer systems could benefit your C.N.C.. Answers: We can suggest the following (based on the Planning Committee Report): - make use of the expertise and experience within the movement for benefit of all C.N.C. - get better deals from suppliers due to large volumes of orders - use combined resources of money and expertise to develop systems to meet current and future standards and needs - provide necessary standardisation allowing development of new services requiring exchange of data - facilitate development at League level of computer advisory service. Management information systems: 1. Retrieves isolated data items 2. Aids ad hoc analysis of data files 3. Provides pre-specified aggregations of data as standard reports 4. Estimates consequences or proposed decisions 5. Proposes decisions 6. Makes decisions Exercise: Which of above items best characterise the use of computers in your C.N.C.? Answer: Well, the answer may differ across C.N.C., but we would say it is primarily the first three items that are dealt with (as well as the immediate recording of transactions), in other words, fairly standardised data manipulations. 4. Tasks: Leading, Personnel Management, Marketing, Operations Management You should read and understand to following headlines: This lecture appends other topics to the famous management functions. Power fields of management claimants, planning, organising, and control, were discussed briefly already in previous chapters. Leading, and personnel management as remaining management functions are combined with marketing and operations management describing the area of management functions application. Lecture 5 describes how management functions can increase motivation of employees or volunteers. The knowledge from previous chapters is applied in the beginning of this lecture. The leadership chapter is enriched by definitions only because all other topics will be discussed in more detail as independent courses. Therefore, personnel management, marketing and operations management review the list of answered questions only. Leadership When you have completed this chapter you should be able to: 1. Discuss the difference between leadership and management 2. Distinguish among the different theories of leadership that are based on characteristics of the individual 3. Distinguish among the different theories of leadership that are based on interaction with the environment 4. Discuss the implications of leadership for tasks of managers, for example: - compare and contrast the style of leadership in a strongly hierarchical organisation - explain the role of leadership - explain the meaning of leadership cycles in the development of an organisation - explain the respective leadership roles that could be played by various actors in the C.N.C. at different stages in its development. Leadership should implement management decisions of previous lectures. Do you remember for example on: - Synergy Effect = f(complexity, transformation, selection) – lecture 1 - Model of change and its stages = unfreezing + transformation + re-freezing – lecture 2 - Offensive and defensive strategies – lecture 3 - Media Richness Theory and Theory of Information – lecture 4 Management goals are like a chain. Each ring of the chain initiating the change can merge at least with one of two other rings representing different management approach. This lecture is not different in this sense. The principal difference we are supposed to solve is whether to eliminate excessive, and often disruptive ”well intended”, or be happy with ”minimal squeezed” desirable activity of staff. |----------------------------------------------------------|----------------------------------------------------------| + Active, highly motivated - offensive Passive, respecting rules – defensive Clean up not demanded results Stimulate, punish, motivate, satisfy! Question: How high can be ”minimal squeezed” desirable activity of staff? Assignment: 1. Select organisational structure reviewing such options like project management, family business, small and medium enterprise of North, state interventions to the regional diversity and development in South Italy, Swedish model, Amway model, entrepreneurs support and employees requalification model of OECD 2. Protect (t-1) and prevent (t+1) selected organisational structure. Remember the lecture 1 where synergy = f(complexity t-1, transformation t+1, selection) 3. Define a content of actions as planning, organising, leading, personnel management, and control. Think how employees will transform = f (scepticism + personal development)! Think how powers will succeed: complexity = f (local vulnerability due to historical power fields in resources, markets, improvements and responsibility) Further the management functions are described. Try to find how to use natural motives for purposes of organisation, or how to change organisation to be able to use motives of employees. Definitions Leadership = The process of inspiring and empowering others to voluntarily commit themselves to achieving the leader’s vision Authority = The right to make decisions and direct activities as a result of a person’s position in the organisation Informal leader = A leader whose leadership activities are unrelated to his or her position in the organisation Formal leader = A leader whose leadership activities are directly related to his or her position in the organisation Initiating – structure behavior = Clearly defining the role of leader and follower so that everyone knows what is expected Consideration behavior = Demonstrating concern for followers and trying to establish a friendly and supportive work climate based on mutual trust Task - centered leader behavior = An effort to lead employees by focusing on work and how well employees perform Employee - centered leader behavior = An effort to lead employees by developing a cohesive work group and ensuring employee satisfaction Charismatic leadership = Leadership based on the leader’s seemingly magical charm (charisma) that draws others to follow Attribution model = A leadership model that assumes a leader’s ability to lead and followers’ perceptions of the leader’s effectiveness arise from the attributions they make Contingency theories = Theories that také into account how different kinds of leaders or leadership behavior are more suited to some followers and situations Last preferred coworker (LPC) scale = A questionnaire asking leaders or managers to describe the characteristics of the kind of person with whom they can work least well Path – goal theory = Theory that asserts leadership is a process of making valued outcomes available, then coaching and directing employees to help them obtain those outcomes and to persuade them they can succeed Leader – member exchange theory = Leadership theory that describes leadership in terms of exchange relationships established by the leader with individual employees. Vertical – dyad model focused on two people who interact with one another involving leader and each follower. Relationship is based on members respecting, trusting and liking one another. Life cycle theory = Theory that leaders should choose a leadership style that matches the readiness of the followers: telling, selling, participating, and delegating Decision tree model = Theory that a leader’s effectiveness is influenced by his or her methods for making decisions Transformational leadership = Radically changing followers’ ways of thinking so that they unite in carrying out a common purpose, raise their aspirations, and do more then they had originally intended Transactional leadership = Inspiring commitment to achieve objectives in exchange for something of value Substitutes for leadership = Theory identifying situations in which traditional leadership behaviors are irrelevant Servant leadership = Articulating a vision for the organisation and giving employees what they need to carry out that vision Leadership styles Exercise: How would you categorise, in one word, each of leadership styles? How effective they would be? Answer: - dictatorial or authoritarian - pasive and often chaotic - democratic. Exercise: Which of the following words is more likely to describe characteristics of leaders in hierarchical organisations or flat organisations? Hierarchical Flat 1. Flexible 2. Motivator 3. Team builder 4. Sensitive 5. Aggressive 6. Patronising 7. Handler 8. Non-listener Other leadership topics: Leadership and teamwork What is involved in leadership? Who gives leadership? Feedback: First, we looked at various styles of leadership, authoritarian, passive and democratic, and how they might be appropriate in different organisations. In particular, we identified that an authoritarian leader requires a hierarchical management structure, whilst democratic organisations tend towards ‘flat’ structures. We emphasised th importance of the team and requirement for both expert and functional roles within it. By using techniques such as the Belbin typology we saw how we might identify team members who, by exhibiting certain characteristics and strengths, can be assigned particular roles. Leaders need to be motivators and team builders as well as helping the team work together effectively towards the overall goals. They also have to be able to initiate change. Indeed there may be a different leadership style required for different phases of the growth cycle. Personnel Management Case: Member relations in C.N.C. When you have completed this section you should be able to: - analyse the contributions under which the stafing structure changes in C.N.C. - list typical context of a contract of employment - distinguish between the relationship of managers / workers and customers in a conventional customer service and in a C.N.C.. The role of volunteers Exercise: There are members, volunteers and beneficiaries in both C.N.C. and charities. Draw arrows on the diagram below to represent various inter-relationships. (Consider ‘members’ of charities as the donators.) Answer: I am sure you will have produced something similar to following Figure. C.N.C. also rely heavily on volunteers, but the volunteers are also the members, and hence the beneficiaries. In a charitable organisation, there are fewer interconnections, i.e. the ‘members’ (donators of funds) are different from volunteers who are different from beneficiaries. C.N.C. __________________ | Members | Volunteers // \\ Beneficiaries |_________________| Charities Members -------------------- Volunteers ------------------ Beneficiaries so, we can see that volunteers in C.N.C. have a self-interest in volunteering - their participation as volunteers helps to strengthen the C.N.C., from which they benefit as members / customers. But the benefit is not immediate or inevitable. It may take months or even years of fairly constant voluntary effort by many people before any benefits in terms of low-interest loans can be obtained. So volunteers are choosing to contribute a lot even when the rewards are uncertain. Furthermore, volunteers continue to contribute even when the C.N.C. is on a stronger footing and more could be left to paid staff. So why volunteers do it? In early stages of C.N.C. development, people work voluntarily to get the organisation established - there is no other way to do it. So, it is fair to conclude that these people believe in the aims and practices of C.N.C., and that is why they give their time voluntarily. One word characterises this voluntary effort: commitment to C.N.C. aims. Commitment Commitment also motivates much of the later volunteer work. It is recognition of the fact that C.N.C. gain strength from the collective effort of their members, and voluntary work is one aspect of that collective effort. Some studies of voluntarism in charitable organisations showed that even those involved in managing volunteers often saw voluntary effort as a gift, i.e. the volunteer acts for altruistic reasons and wants nothing in return. But other studies have found different results: that volunteers come to an organisation to make ‘an exchange’. (This is based on E. Willis, in J. Batsleer et al. (eds), Issues in Voluntary and Non-Profit Management, Addison Wesley, UK, 1991.) Such an exchange would include: - social contact with others - personal development - skills acquisition and learning - challenge and achievement - making a contribution to society. It is likely that volunteers who are involved in C.N.C., especially after the setting-up phase, will have similar motivations: perhaps for ‘making a contribution to society’, or in this case ‘making a contribution to the growth of the C.N.C.’. Since volunteers have certain non-monetary expectations from their work, it is important for managers to be able to satisfy at least some of these expectations. If this does not happen, voluntary effort is likely to decline, to the detriment of the C.N.C.. Exercise: Why do I say ‘to detriment of the C.N.C.’? Surely a growing C.N.C. requires full-time, paid staff? What is your view? Answer: OF course, there will be a need for full-time paid staff and, increasingly so, as the C.N.C. deals with more members, handles more savings and gets involved in more complex services. But there is still a major role for volunteers (leaving aside Board members who are also volunteers). Volunteers provide: - energy and enthusiasm - commitment a flexible ‘pair of hands’ - more contact with members. They help to maintain sense of C.N.C. ‘belonging to us’ and they also, of course, save money, but that is not the main reason for making use of them. Volunteer involvement Since volunteers are important and since they also want to achieve certain aims in their work, managers have a responsibility towards them. A model of volunteer involvement (developed by Beugen and quoted in Willis, op.cit.) proposes three stages: - exploratory - developmental - mature. In the exploratory stage the volunteer is getting to know the organisation and deciding whether he/she will be able to make a positive contribution and satisfy his/her expectations. In C.N.C. this phase should be relatively straightforward because most volunteers will already been involved with the credit union as members/savers. In this stage the manager / paid staff need to give support and encouragement, and to answer any doubts or questions the volunteer may have. In the developmental stage the volunteer is introduced to new people and situations which allow his(her qualities and skills to be appreciated and developed. At this stage manager may leave volunteers to their own devices, feeling confident that they can manage. However, since that may lead to a lack of communication, it is important to recognise volunteers’ achievements and respond to their personal aspirations. In the mature stage, the volunteer is making a maximum contribution and can take on positions of greater responsibility. The manager must now make sure the organisation uses the qulaities and skills of the volunteer effectively since otherwise the volunteer will begin to lose interest and motivation. There are two organisational views of volunteer involvement: - task-oriented view - volunteers are involved just to perform tasks for the organisation. In this view, volunteers are not allowed to become involved in decision-making or policy issues - volunteers play more central role - assisting with planning processes, developing campaigns, and so on. Exercise: Which of the two organisational views of volunteer involvement is followed by credit unions? Answer: We would say that it is the second view that is more widely followed, although it depends on what time scale you consider. Certainly, some volunteers basically do counter work. But later it is often the people who worked as volunteers who carry on to be members of the Board or the main committees. In fact, we would say that one of the responsibilities of the manager and Board is to give maximum encouragement to volunteers, with the long-term aim of developing a pool of committed people knowledgeable about credit union operations, who will be able to move on to important (but still voluntary) positions in the credit union involving both planning and policy making. This organisational view which gives both importance to volunteers and a sense that they can be more centrally involved, means that volunteers themselves are more likely to continue to give their time and become strong advocates of the credit union in the community. The other view, where volunteers are used just for the tasks they do, is likely to result in their de-motivation, and the whole voluntary effort might decline. This will then have the effect that credit union will be less able to call on a commited group of people to serve on the Board, and the long-term development of C.N.C. will be put at risk. So, altough the expansion of the C.N.C. will ultimately require a full-time manager and full-time paid staff to allow a more continuous service covering a greater range of products, the input of volunteers should still be strongly encouraged. We have so far tended to consider the role of volunteers other than Board members and executive officers, since we have discussed the management roles of these people in previous sections. We will briefly look at their roles as volunteers here. Volunteer officers Again, we can distinguish the role of the Board and executive officers in a C.N.C. from the role of a Board or management committee in many voluntary organisations. In the latter, the board comprises people who are generally not ‘members’ of the organisation and who may not have a strong commitment to it. In these cases the, Board may not see a major role for itself, and may leave more areas of responsibility to the paid staff. In a credit union, there should be no doubt that the Board members and officers play a vital role. Employment conditions and contracts Since C.N.C. develop from voluntary beginnings, and voluntarism is a continuing feature of them, there may be a tendency to give less importance to the employment conditions of volunteers and paid staff. Volunteer staff Volunteers are volunteers - that is, they do not receive a salary and will not have an employment contract. But there should be some conditions laid down to cover their work. some voluntary organisations produce statements on the role of volunteers in the organisation, which may include a code of practice:, some give contracts of employment to volunteers, stipulating such things as duties, tasks, etc. Exercise: Think about your C.N.C., or one with which you are familiar. Does it have a code of practice for volunteers? What does it contain? Answer: An appropriate code of practice would comprise the following: - expenses - health and safety - training and support - insurance cover - involvement of volunteers in decision-making - grievance procedures - relationship between paid staff and volunteers - development of recruitment policies. If your C.N.C. does not have such a code then perhaps you should consider insignating one. Relations between management / staff and members / customers The various relationships between individual members of a C.N.C. was the subject of this section. We compared interactions within a C.N.C. with other organisations, like banks and charities and particularly looked at the role of volunteers. The motivation behind many volunteers was seen to be a commitment to C.N.C. aims and the desire to make an exchange for such intangible benefits as: - social contact - personal development - skills acquisition - challenge and achievement - society contribution. We considered the role of managers towards volunteers under three stages: exploratory, developmental and mature. We emphasised the need for agreed employment conditions and a code of practice for volunteers and how this should be similar to ones introduced for paid staff in order not to foster dual standards. We looked in detail at the personnel and employment issues that need to be considered for paid staff. Finally, we briefly discussed the unique relationship between manager / staff and members / customers in C.N.C. organisation. Marketing Objectives When you have completed this section you should be able to: - explain the relevance of marketing concepts to C.N.C. operations - analyse the extent of direct competition between C.N.C. and its competitors - describe the four components of the marketing mix and how they relate to C.N.C. - describe the ‘unique selling points’ that make C.N.C. attractive to their members/customers - evaluate the relevance of market research to expand C.N.C. membership. You should read and understand to following headlines: Marketing philosophy and C.N.C. Marketing practices Marketing research Marketing and education about C.N.C. Relationship between customers and business Customer-business interactions: Exercise: What are ‘moments of truth’ in a C.N.C.? Answer: We are thinking here of the points of contact between a member and C.N.C. staff, for example, contact at the counter, or with a service supplying officer. Of course ‘moments of truth’ do not reveal everything about a business and what it offers. For example, in a credit union the main service offered is savings and loan facilities, the nature of contact with teller is likely to be less important than the ability to get a loan costs down. None the less, it adds to the quality of the service to be pleasantly and helpfully treated by a teller. And it is easy to think of the parts of the service sector where ‘moments of truth’ add significantly to the value of the service, for example high priced restaurants and hotels. Customer/business relationship in C.N.C. Exercise: Why should C.N.C. be better placed to meet customers’ needs than conventional organisations? Suggest two reasons. 1. 2. We would suggest the following: - The main stated aim of C.N.C. is to provide specific benefits to their members, this is not the main stated aim for most of conventional organisations. - Th board of Directors defines policy, the Board itself comprises members, and therefore should impart a customer focus in their planning. - C.N.C. are generally staffed by members, particularly when volunteers are involved in operations, staff motivation to meet members’ needs should therefore be high. - C.N.C. are not serving ‘two masters’, unlike conventional companies. Unique selling points Exercise: We can use the term unique selling point to indicate those special aspects of C.N.C. that make them attractive to their customers, particularly as compared with their nearest competitors. Identify three USPs of credit unions that give them an advantage over their competitors. 1. 2. 3. Answers: There are many. You might have included some of the following: - ownership: the customers own the credit union - atmosphere: credit unions are generally more friendly than banks - cheaper: interest charges are lower - smaller scale product: credit unions give smaller loans - better terms: credit unions generally give unsecured loans - commitment: voluntary effort results in more energy and commitment in the credit union. Marketing plans The markeing plan can have the following structure: Target group Product Place Price All members Budget a/c’s Low income Budget advice Home C.U. C.U. USD 1 per month Free Promotion by means of Leaflets in C.U. Leaflets in C.U. When Target Start Jully 2000 Start sept. 2000 200 a/c’s per year 50 members per year Marketing is ‘the process of satisfying the needs and wants of society via an exchange process’. In this section we looked at the concept of marketing and how these four approaches might relate to C.N.C.: - product centred approach - selling approach - marketing concept - societal marketing concept. We analysed C.N.C. in terms of the marketing mix: - product - price - place - promotion. We argued that market research, via quantitative and qualitative methods, is just as relevant for C.N.C. as for any other organisation. Unique selling points (USPs) for C.N.C. were identified and we saw how this technique can be useful in marketing terms as well as a means of educating existing members and potential members about C.N.C.. Finally, we addressed the issue of devising a marketing plan for C.N.C., recognising that it should fit in with the overall Objectives of the organisation. We now move on to the final section of the Unit, concerned with member relations. Exercise: Can you recall the beneficial outcomes of marketing? Answer: Marketing is beneficial activity because it helps the service organisation to identify what people need and want, and the best ways of meeting those needs. Service design process: Service delivery process: Exercise: Give an example to illustrate how the service design process is ‘linked’ to the service delivery process, in the C.N.C. Answer: There are number of examples which you might have suggested, for example, if as an aspect of service design you allow for only two counters to be open at any one time, resulting in large queues and delays at peak times, the result will be poor service delivery and member dissatisfaction. This example illustrates the need to get the service design right, in order to avoid problems at the service delivery stage. Operations Management in Perspective Objectives When you have completed this section you should be able to: - describe the key stages in the development of operations management - list the main components on an operating system - distinguish between the manufacturing sector and service sector in relation to operations management - suggest how operations management within a C.N.C. union differ to that of a conventional company. The development of operations management Exercise: How many of the five major management approaches examined in Unit 2, Section 1 can you recall? Answers: (Hopefully, you will have remembered at least two or three of the following: - classical (functional) management - scientific management (Taylorism) - human relations management / behavioural sciences - bureaucratic management - quality circles / teamwork) (It is worked out now) Exercise: Are the following statements True or False? - Operations management has always been primarily concerned with quality Y/N - The human relations approach was a forerunner of personnel management Y / N - Rules laid down in bureaucratic organisations are an example of operations management Y / N - In the scientific management approach, operations management was mostly concerned with motivation of workers Y / N Answers: (1. False. 2. True. 3. True. 4 False.) Components of an operating system The main functions are: finance, production/operations, marketing. Supporting functions include: accounting, personnel, purchasing, maintenance, and so on. Exercise: Think about your own C.N.C. office and suggest one aspect of it which would come under heading of system design and another which would come under system operations. We have given you and example of each to get you started. - System design: 1. location of C.N.C. premises, ... System operations: 1. drawing up staff roles, ... Answers: We would suggest you following as example: System design: location of C.N.C. premises, internal layout, number of serviceman, purchase of computer system. System operation: drawing up staff rosters, developing secure system of handling purchases, setting up system to gain feedback from members on service quality. Can you see another distinction between system design and system operation? This distinction may not be so obvious to you. Basically, it brings us back to some of previous discussions of planning in C.N.C.: system design decisions would tend (although not always) to be long-term decisions, made by the Board, while system operation decisions would, again, tend to be short-term decisions, made by the paid manager. Lets look in a bit more detail at the components of an operating system. System design components: Product/service mix, capacity, facility, layout, technology. System operations components: Purchasing management, inventory management, scheduling, personnel management, financial control, quality assurance/control. Exercise: Figure is intended to reflect operations management issues in both manufacturing and service sectors. Strictly speaking, there is a difference between how these sectors operate which should be reflected at the ‘output’ end of the diagram on the right hand side. Can you state this? Answer: (We are thinking of the following difference: that services are often ‘consumed’ within the premises, whereas goods are not. This is certainly the case with this kind of C.N.C., where the services provided - .... - are all delivered within the C.N.C. building. (This answer is opening new - following point): Operational elements of a quality system Three main processes are involved in the service organisation: marketing, service design and delivery. Exercise: Give an example of each of three service processes as applied in C.N.C.1.Marketing process: 2. Service design process: 3. Service delivery process: Your answers may have included the following: 1. MP: identifying what your members need, for example, through a questionnaire survey, or feedback over the counter. 2. Design: creating systems and procedures for approving loans and disbursing loan cheques. 2. Service delivery process: the process of dealing with members, for example the way in which C.N.C. purchase and sell products. Exercise: Below we have given an example of a method of communication which could be used to advise members of quality issues. Can you think of another way of communicating quality issues? 1. Provide a written statement to members of specific quality objectives as defined by the Board 2. 3. You might have proposed one of the following: - hold occasional workshops with a sample of members to discuss ways of improving service quality (this is done, for example, in some banks) - provide a means for members to make complaints in relation to quality, for example, issue complaints slips, questionnaires, etc., ensure the manager and staff are available to deal with members’ complaints, and so on. Operations management in C.N.C. Organisations The overall aims of this unit are: - to give you an understanding of the meaning, scope and relevance of operations management, especially in relation to the service sector and more specifically to this C.N.C. - to discuss and evaluate the importance of quality as a factor in C.N.C. union operations - to describe the moves towards employee empowerment and participation in organisations today and its relevance to this C.N.C. - to evaluate the role of information technology (IT) within C.N.C. - to evaluate the type and importance of personnel issues affecting C.N.C.. Operations Management in Perspective When you have completed this section you should be able to: - describe the key stages in the development of operations management - list the main components on an operating system - distinguish between the manufacturing sector and service sector in relation to operations management - suggest how operations management within a C.N.C. union differ to that of a conventional company. You should read and understand to following headlines: The development of operations management Components of an operating system Differences between manufacturing and service sectors Operation management in C.N.C. In this section we discussed the meaning and application of operations management, both in a general way and then with respect to C.N.C.. In the first sub-section we discussed the development of operations management ideas, and their connection to the development of broader management approaches, from scientific management through to Japanese-led concern with quality. In second sub-section we looked at the components of an operating system, distinguishing between system design features and system operation features. System design features are more a matter for long-term planning, while system operation features are more matter to do with continuous running of the business. In the third sub-section we looked at differences between the manufacturing and service sectors in relation to operations management issues. We found that in a number of respects the service sector has quite distinct characteristics from the manufacturing sector, and these characteristics need to be taken into account in developing and operating system for a C.N.C.. Finally, we discussed operations management in C.N.C.. We noted that some features of operations management in C.N.C. are distinct in comparison with conventional organisations, due in part to the C.N.C., member-owned structure of this kind of C.N.C., and in part to the concern within this C.N.C. to improve effectiveness, and not just efficiency. However, many of the issues for operations management in this C.N.C. are usually the same as those which need to be addressed in other types of organisations. Total Quality Management for C.N.C. When you have completed this section you should be able to: - describe the development of the quality concept in business - explain what quality means in the concept of business - describe the main features of a total quality management approach to quality - compare the characteristics of a C.N.C. culture with a TQM culture. You should read and understand to following headlines: Origins of the quality concept Definitions and dimensions of quality Relationship between customers and business Total quality management In this section we discussed a number of issues related to the concept of quality. In the first part we looked at the origins of quality concerns in the temporary business world, although we noted that the Rochdale Pioneers promoted quality as far back as 1844. In more recent times Japanese business has been primarily responsible for making quality and important factor. We then looked at different definitions of quality, noting that although quality is generally viewed from the perspective of customers, it is and important issue for producer too (as well as other stakeholders like wider society). We discussed the various dimensions of quality, and outlined the consequences to a business of poor product/services quality. In the third part, we focused more specifically on the relationship between customers and business, discussing the concept of ‘moments of truth’, which are the points of contact between the customer and the business, when much of a customer’s opinion of the quality of service will be formed. We then considered whether the customer-business relation is different for C.N.C., noting that in principle C.N.C., because of their ownership structure, should be better geared to meeting their customers’ (members’) needs. In the final part, we introduced the concept of Total Quality Management (TQM) and outlined its general features. We discussed what is involved in TQM, and described the ‘culture change’ which conventional organisations need to make to adopt a TQM approach. We noted that, in general, C.N.C. should be closer to a TQM approach that conventional organisations, due to their member-focus, and C.N.C. structure. Finally we outlined some of the criticism of TQM. In the nest section we will look at quality systems for service organisations. Differences between manufacturing and service sectors Exercise: Can you state two distinct ways in which the manufacturing and service sectors differ which will affect the operations function? Here is one to get you started: 1. Products are generally tangible (physical objects) whereas services are not. Answers: .... obvious Exercise: Explain why quality of the service facility may be more important to a high priced restaurants compared to fast-food outlet. Answer: We want to focus attention here on the possible trade-off between the service itself and the conditions within which the service is experienced. If a fast-food outlet provided the same quality decor and service that is expected from high-priced restaurant, it would no longer be a fast-food outlet, because people would want to linger on. From the customer’s point of view, the benefit of a fast-food outlet is that service is quick, without frills, and relatively cheap. ... Exercise: Below we have given you an example of a method which would be used to smooth demand and adjust service capacity (queuing problem). Can you give another example of each? Smooth demand by: 1. using reservations or appointments (for example, in a doctor’s surgery), 2. ... Adjust service capacity by: using part-time / volunteer inputs at peak times, 2. ... Answer: You might have thought of one of the following: Smooth demand by: using price incentives, promoting off-peak times, ... Adjust service capacity by: scheduling staff inputs to meet peak demand, introducing increased self-service element into the service, ... Exercise: Are following statements False or True? 1. Service quality is important for attracting customers Y/N 2. Services are consumed outside premises Y/N 3. Services can be put into inventory Y/N 4. Queing is an important phenomenon in many services Y/N 5. Services are capital-intensive Y/N. Did you come up with following? 1.True. 2. False. 3. False. 4. True. 5. False. Operations management in this C.N.C. Exercise: Can you suggest the differences for the other two issues? Operations management issues C.N.C. Attitude towards customers maximise customers benefits Attitude towards the staff Staff-customer relations Conventional company customers are the source of profit In the following text we have outlined some of the more obvious differences. Staff (including volunteers work to Staff work to make the company make C.N.C. work effectively for work effeciently for the owner / the members shareholders Staff are aware that customers own Staff need to be trained to handle the C.N.C., some staff are also ‘moments of truth’ with customers. members. Exercise: Suppose you are involved in planning. Suggest two factors which might increase the efficiency of operations in each case. a) Internal capacity: 1. 2. b) Demand fluctuations: 1. 2. You might have included some of the following: a) plan so that maximum queuing time during peak periods would be, say, 2 minutes a) plan each servicing person’s area to facilitate rapid transactions b) experiment with ways to smooth peaks of customer demand, to make more efficient use of paid staff time b) use volunteer staff to help out during peak hours. Q: We listed seven characteristics of service industries in this section. They are: services are intangible, production and consumption are simultaneous, services are consumed on premises, services cannot be put into inventory, services are time-perishable, site selection is dedicated by customers’ demands, services are labour-intensive. Write a paragraph on each characteristic, indicating to what extent C.N.C. in particular, display these characteristics. 6. Events, Decision Making, Management Learning, Visual Management Software, Budgets You should read and understand to following headlines: Decision Making When you have completed this section, you should be able to: 1. 2. 3. Identify different types of decision making Explain the rational decision making process Explain how groups make decisions Definitions: Decision = A choice from among alternative courses of action Programmed decision = Routine and repetitive decisions for which the organisation has developed a procedure Non-programmed decisions = Unstructured and unique decisions that arise from situations that are unusual and involve changeable and unpredictable circumstances Certainty = A condition in which the decision maker knows the outcome of carrying out each alternative under consideration Risk = A decision – making situation where the decision maker can estimate probability of each possible outcome Uncertainty = A condition under which the decision – maker has no knowledge of the outcome of each alternative Rational decision making: A logical, consistent process for identifying the alternative with the greatest utility, or usefulness for a purpose Problem = The cause of a difference between the way things are and the ways things should be Expected value = A statistical measure of an alternative’s value calculated by multiplying each possible outcome by the probability of that outcome occurring, then summing all these products Bounded discretion = A condition in which decision makers are limited to a subset of the possible alternatives Loss aversion bias = A preference for choices that do not involve risk of losing Risk aversion bias = A preference for sure outcomes over risky ones Availability bias = The tendency to judge the likelihood of an event based on the ease with which it can be called to mind Base rate bias = A tendency to ignore background information and treat a particular situation as unique Regression toward the mean = The tendency of an extraordinary event to be followed by a more ordinary event Escalation of commitment = The tendency to stick with a choice after investing to implement it Satisficing = Decision making based on finding an alternative that meets a minimum level of acceptability Performance programs = Detailed procedures for how to handle a particular situation Groupthink = A condition in which members of a highly cohesive group become unwilling to critically evaluate each other’s ideas Brainstorming = A process for generating as many ideas as possible in the absence of criticism Delphi method = A group decision making technique in which the group solicits and compares anonymous judgements on an issue through questionnaires and feedback Nominal group technique = A structured group meeting in which participants generate ideas individually, discuss them one by one, and vote on them by secret ballot Decision-making: The Issues Objectives: When you have completed this section, you should be able to: - summarise the main steps involved in the ‘rational’ model of decision-making and to evaluate this model - describe some of the problems associated with group decision-making - list and describe a number of techniques used to aid decision-making in groups. Who, How, and Why Decision is Made? Two pictures below display different priorities. Some of priorities are personality related others are related to a company orientation. All must fit together in time. Urgent impulses Orientation on others Orientation on product 4. Empathy Important 3. Objective Not important 6. Synergy 2. Strategy 1. Proactivity Selforientation 5. Proporcionality Orientation on production Not urgent impulses Definitions: Orientation = Internal orientation on product, production, self, or co-operation Impulses = External impulses un/urgent, un/important Habits = accepted patterns of reactions and internal impulses evaluation as empathy, pro-activity, thinking over, strategy, and planning Failure = contradiction between habit and reaction created by insufficient durability of personality basics like physiology, mentality, spirituality, and sociability ‘Rational’ decision-making Exercise: In Unit 2 we discussed the four main functions of management. What are they? (planning, organising and implementing, control, leadership). Figure 1: ‘Rational’ decision making process: 1. Identify the problem, 2. Diagnose the causes of the problem, 3. Develop alternative solutions, 4. Evaluate these alternatives, 5. Choose between alternatives (make the decision), 6. Implement the decision, 7. Monitor and review selected option. Exercise: How do steps in Figure 1 correspond with the three basic management functions: planning, implementing and control? Answer: (Step 6 speak for itself: it is the implementing function. It’s probably fairly clear that Step 7 is the control function, involving monitoring, feedback and review. The other steps, but especially 3-5, are planning function, while steps 1-2 are necessary preliminary steps so that the target of the planning work (what is being planned) is clearly identified. Exercise: The traditional model of decision-making may not always conform to the processes of decision making that take place in reality. Coca Cola, for example, made a quick decision without going through these rational steps. What assumption does the rational model make? Try to identify two. Answer: (The rational model assumes that: - people have perfect information, to allow them to make the correct decisions - decisions are made on the basis of perfect rationality, i.e. people will make logical decisions based on the information they have, without letting any other factors, such as personal prejudices, influence their decision. Problems in group decision-making Janis suggest eight symptoms of group-think: - Invulnerability: the group has an illusion of being invulnerable which leads to over-optimism and excessive risk-taking. - Rationale: the group is collectively able to rationalise its decisions to the extent that warnings and negative feedback are ignored. - Morality: group members believe in the inherent mobility of their group, and this blinds them to the ethical or moral consequences of their decisions. - Stereotypes: leaders of opposing groups are cast in stereotyped ways as evil, weak or stupid. - Pressure: the group applies pressure to any individual who expresses any doubth about the group’s selected course of action. - Self-censorship: anyone with missgiving tends to keep silent rather then disturb the ‘consensus’. - Unanimity: partly as a result of the last symptom, all expressed views appear to support the majority, giving members illusion of unanimity. - Mindguards: some group members appoint themselves as ‘mindguards’ to protect fellow members from information running contrary to their views. Exercise: Read through the following (fictional) example: After a discussion of two hours, mostly spent extolling the virtues of the private company that they were going to sell-out to and enthusing about how their market share was going to quadruple overnight, the chair of ABC C.N.C. called the meeting to order. ‘So I take it that we’re all agreed? Bombast Engineering Co. will buy us out, we’ll all get a good return on what we put in at the start, our jobs are secure ... what more could we ask for?’. Roars of approval from six of the eight other members, especially the two who privately negotiated the deal in the first place. Two members remind silent. ‘Oh come on’, the Chairman said, turning to them, ‘surely you don’t want to turn this opportunity down? Not that it matters anyway, because we’ve got the two thirds majority we need to convert the C.N.C.. But what are you holding out for? Come on, we have to give an answer to the company tomorrow, and we want to be able to say that we’re in unanimous agreement’. All eyes turned to Pat and Dave, the wavers, and they felt that all they had struggled for, to get this C.N.C. so far, was now coming to end - for something better? ‘Yeah’, Pat said softly, ‘we’re favour, aren’t we Dave?’ Dave noted his agreement, and soon it was drinks all round. Do you detect any symptoms of group-think in this situation? Identify three examples from the above example. Answer: You probably included some of the following: - there was evidently no discussion of alternatives: the meeting was devoted to talking up the virtues of the preferred option - there are signs of ‘invulnerability’ creeping in: how can they be sure their jobs will be secure, if they are no longer in control of C.N.C.? - there are clear signs of ‘pressure’ being applied to two doubting members: the majority appeal to them for a show of ‘unanimity’, coupled with the veiled thread that their views ultimately won’t count anyway - ultimately, Pat and Dave submit to ‘self-censorship’: they have doubts, but they fail to express them. Q: The XYZ C.N.C. union is faced with ‘the problem of success’. Its membership has grown so rapidly, that people can’t get through the door on the two opening nights: some members are starting to complain about getting caught in rain while they wait for service. Equally, members are having to wait several days before they get service delivery approval, which has to be granted in every case by supervisory committee. The four voluntary serviceman are also voicing complaints about working in cramped conditions and feeling the ‘friendly’ image of C.N.C. is being lost. Assume you are a board member faced with these complaints. Using the steps proposed in the ‘rational’ model of decision making, suggest how the problems outlined above might be dealth with. Q: There is no unique answer, but your answer may be along the following lines, and should at least follow a similar layout. 1. Identify the problem The basic is that members are not being provided with service quickly enough. If this situation was not improved, members might start to leave, or not bother to make furter contributions. 2. Diagnose causes of the problem There could be a few causes. One cause might be simply lack of space, another one might be lack of staff, a further cause might be non-computerisation of transactions: and a last cause might be lack of delegation of service delivery approvals from the supervisory committee 3. Develop alternative solutions Well, the solutions depend on the diagnosis above. If the cause of the problem is lack of space, then alternatives area and expansion of the building and/or extension of opening hours. If the diagnosis is lack of staff, then the solution is obviously to have more of them, either paid and/or voluntary. If the diagnosis is lack of computerisation, then the solution lies in installing a system of computer-based transactions. Finally, if the diagnosis is lack of delegation of power from the supervisory committee, then there is a need to give this power to officers, at least up to a certain limit. Of course the diagnosis can reveal that all of these factors contribute to the problem. 4. Evaluate the alternatives Looking at the alternatives proposed above: an expansion of the building is costly, but obviously provides a facility of long term benefit. Extending opening hours is more short term measure which is sensible up to a certain stage. The decision here might be, for example, to extend the opening hours and monitor the effect for three months. If the problem remains, the option of extending the building would be examined more thoroughly. The option of more staff could be a solution: will more members be available as volunteers, ar will staff have to be hired? How much will that cost? What about the option of computerisation? It’s relatively costly, and initially difficult to understand: but perhaps it would be the most effective measure to speed service up? Finally, there is the option of extending the powers of service delivery approval: Is committee not able to meet often enough, or do they want to keep the powers of service size delivery approval to themselves? Who could power of service delivery approval be extended to, and what limits would be set? 5. Choose between alternatives Well, we don’t know which is the best: Let’s assume that board agrees that in the first instance, a combination of extending opening hours and giving powers of the service size limit approval to a Officer, is the best solution. 6. Implement the decision The board takes the necessary steps to implementation these decisions, by (i) agreeing to hire two part time staff members, and (ii) giving limited power of service size limit approval to the current Assistant (assuming no full time manager). 7. Monitor and review selected option The board agrees that impact of their decisions will be monitored by the Assistant and will be reviewed after six month, with the possibility that more far-reaching decisions will have to be taken if the problem is not solved. C.N.C. Decision-Making Process Objectives When you have completed this section you should be able to: - distinguish between different types of decision and the best ‘level’ at which these decisions should be made - explain how dynamics of organisational growth have impact on decision-making structures and processes - compare consensus and majority-voting as methods of reaching democratic decisions. Types of decisions Exercise: In C.N.C. context, can you think of examples of the following types of decisions? Write down one example for each type. 1. Urgent (short-term) decisions: 2. Decisions needing specialist knowledge: 3. Decisions critical for future direction (strategic): Answers: Your examples might have included some of the following: 1. Urgent (short-term) decisions: need to obtain more liquid funds to satisfy big demand for loans, decision on taking on replacement staff if one teller goes sick 2. Decisions needing specialist knowledge: whether to computerise, whether to invest surplus funds 3. Decisions critical for future direction (strategic): whether to employ full-time manager:, whether to make large investment, e.g. to build new C.N.C. building Specialisation in decision making - degeneration theses: 1st phase: The Conquest - the prior of formation of the association, where ‘enthusiasm and hopes are high’, ‘decisions are made by the assembly of all the members’, ‘volunteers step forward for all tasks’, ‘C.N.C. was intended as the creator of new human relations based on equality’. So, a period of high commitment and idealism, but one where ‘economic activity (was) still badly established’. 2nd phase: Economic consolidation - in this phase, economic pressures cause modification of the organisation’s structures: ‘more rational methods of administration and ... more capitalistic approaches must be introduced’. ‘In all groups the power of the administrative council increases: the administrators are re-elected, their powers increase, the limits placed on their initiatives are weakened. Numerous controls are removed ... in order to increase efficiency of the organisation’. So, ‘this second phase is a period of transition’, where economic factors tend to dominate, and where there are may be conflicts between managers and the early idealists. 3rd phase: Coexistence - in this phase the organisation loses its ideals: ‘... the groups have renounced making a stand against their environment, and ... delegated democracy extends to all activities. In this stage the groups gradually take up again the values of the global society against which they wanted to struggle in the beginning. Not only have C.N.C.s had to take up the methods of management appropriate to private enterprise, but values have changed’. So, in this phase democracy is reduced to a representative board, and the gap between managers and workers increases - in terms of salaries, information, managerial expertise, power. 4th phase: The power of the Administrators - ‘The complexity of economic life and the swelling of administrative apparatuses ... the decision made by elected organisms, are all in the hands of those who by career, are constantly at grips with the problems. They are specialists, experts, without whom the functioning of the group would become impossible, and as such, they hold great power ... At this stage, the groups have cased to respect the democratic schema that they gave themselves in the beginning, and ... the effective power has ceased to be in the hands of the members or of their representatives’. A. Meister, Participation Associations, Development and Change. Transaction Books, New Brunswick, 1984. Democratic decision-making: consensus and majority voting We can describe these different ways of making decisions as follows: - No decision - someone makes a suggestion, but it is ignored by the rest of the group and gets forgotten. - One person - one person pushes through a quick decision, but may later find that no-one will support him/her when it comes to implementation. - Hand clasp - one person makes a suggestion, another person hails it as a great idea, and it is passed without further discussion: but resentment may surface later. - Clique - decision pushed through by a small group which plans in advance. - Minority - decision made by domination of few individuals, although they are not organised in a clique - Majority vote - this attempt may be the best way to make decision in a large group, but a large minority may then feel let down. - Silent consensus - an attempt at unanimous agreement, but it may be achieved when some members have not felt free to disagree and kept silent. - True consensus - agreement reached after everyone’s opinions have been heard and discussed. All opinions are openly considered, therefore all members should feel happy with the ultimate decision. Making decisions is likely to take time however. Decision-Making: The Issues When you have completed this section, you should be able to: - summarise the main steps involved in the ‘rational’ model of decision-making and to evaluate this model - describe some of the problems associated with group decision-making - list and describe a number of techniques used to aid decision-making in groups. You should read and understand to following headlines: ‘Rational’ decision making Problems in group decision making Some techniques for decision making in groups In this section we have looked at a number of important issues relating to decision-making in general, and decision-making in groups. We first discussed the question of who makes decisions, i.e. is it an individual manager, or is there a role for a wider group? We then discussed the ‘rational’ process of decision-making and the steps involved in that process. We learnt that there are a number of criticism of the rational process, on the grounds that it may not describe how decisions are actually made. We consider a number of specific problems in relation to decision-making in groups: - conformity (group-think) - risk. We also questioned whether the rational process might dilute the positive effect of motivation, which is generally a strong characteristic of C.N.C.. Finally, we briefly discussed some techniques which can be used for group decision-making: - brainstorming - Delphi technique - quality circles. C.N.C. decision making process When you have completed this section you should be able to: - distinguish between different types of decisionand the best ‘level’ at which these decisions should be made - explain how dynamics of organisational growth have impact on decision-making structures and processes - compare consensus and majority-voting as methods of reaching democratic decisions. You should read and understand to following headlines: Types of decisions Specialisation in decision making Democratic decision-making: consensus and majority voting In this section we looked at some specific aspects of decision-making in C.N.C.s. We started by looking at different types of decisions. We developed a classification of decisions: - those which are urgent/short-term - those needing specialist inputs - those with strategic implications. We suggested that there was a time dimension to these types of decisions, and that to some extent they could be further differentiated by who made ultimate decision. We also noted that not all decisions fitted neatly into this classification, which should be used as a framework for thinking about how different decisions are made, and by whom. We then looked at the ‘degeneration thesis’ in relation to democratic organisations. We showed how decisionmaking can become more specialised and concentrated in the hands of a minority with greater information and knowledge. We discussed ways of counteracting this problem, including: - widening the range of skills on the Board - ensuring a good relationship between the Board and the manager - encouraging wider member involvement - developing clear plans and policies - diffusing the role of information-gathering. Finally, we compared majority voting and consensus as the two main forms of democratic decision making, discussing the advantages and disadvantages of both in the C.N.C. context. Running Meetings Co-operatively When you have completed this section you should be able to: - analyse the reasons for meeting not working effectively - distinguish between different types of meetings in terms of the purpose they serve - list a number of measures that can be taken to make meeting effective - give examples of indicators which can be used to measure the effectiveness of your meetings You should read and understand to following headlines: Problems with meetings Types of meetings Making meeting effective Measuring the effectiveness of meetings In this section we have looked exclusively at meetings. In the first part we looked at some of the reasons why meetings may not be effective. We suggested two types of reasons: - structural - group dynamics. We also looked at conditions under which meetings are or are not appropriate. In the second part of the section we discussed the characteristics of different types of meetings, distinguishing between: - the AGM/Special General Meetings - Staff meetings - Board meetings - Special strategy meetings. In the third, and main, part, we considered ways of making meetings more effective. As part of this discussion we dew a distinction between ‘member-centred’ and ‘chair-centred’ meetings. We then discussed tha following factors influencing the effectiveness of meetings: - planning the meeting - physical environment for the meeting - chairing / facilitating and minute-taking - contribution of all participants - results. Finally, we presented a way of measuring the effectiveness of your meetings. Management Learning Management course deals with mutual beneficial support of individuals, communities and organisations. Management use actual and forecast impulses to design successful actions. Economical subjects use past impulses and law limits actions with negative result. Therefore, management is one of listed approaches leading to the success. Learning in teams Informal learning theory is focused primarily on the learning of individuals. Yet today’s organisations, the focus must be on learning systems. Managers might critique the feasibility of enacting informal and incidental learning because they feel they cannot change the environment to support learning. Table 3: Alternative pedagogies Traditional Education Traditional You should read and understand to following headlines Traditional method Strategy-based Radicals Radical method Traditional You should read and understand to following headlines You should read and understand to following headlines-focused Radicals Radical You should read and understand to following headlines Traditional method Critical Pedagogy Radical method Radical You should read and understand to following headlines Characteristics of a critical perspective: 1. Questioning assumptions 2. Analysing power relations 3. Critical reflection has a collective focus Characteristics in practice: 1. The curriculum: access to critical treatment of management theory and practice in various disciplines (accounting, organisational theory, and so forth). 2. Structures, procedures and methods: these are no-hierarchical, providing choice, opportunities for dialogue and influence over the program’s design and You should read and understand to following headlines. 3. Introduction to critical perspectives: some of which may be included in curriculum but are applied to the learning process. 4. Reflexivity: applying critical perspectives to understanding ones own position in relation to the educational process, and to understanding and managing the learning milieu jointly with participants. Educational design with this element of practical reflexivity are more likely to lead beyond the language of critique to the real possibilities of change in working conditions and working relationships. Lessons from Informal and Incidental Learning. Literature: Marsick, V., J., Watkins, K.,E.: Managemnt Learning Formal learning is typically institutionally-sponsored, and highly structure. Informal learning, a category that includes incidental learning, may occur in institutions, but it is not typically classroom-based or highly structured, and control of learning rests primarily in the hands of the learner. Incidental learning is defined as accomplishment, interpersonal interaction, sensing the organisational culture, trial-and-error experimentation and even formal learning. Informal learning can be deliberately encouraged by an organisation or it can take place despite an environment not highly conductive to learning. Incidental learning, on the other hand, almost always takes place although people are not always conscious of it. Table 2: Comparison of the transformative learning theories Theor y Refle ctive learni ng Trans forma tive learni ng Refle ctive learni ng Com pone nts of exper ience Trans forma tion Stages of learning A sense of inner Identification/clarif Openness to discomfort ication of the new information requires a trigger concern, with a sense that something is missing 1. A 3. Critical 5. Exploring disorienting assessment of new roles, dilemma epistemic or relationships, 2. Selfpsycho-cultural actions examination presuppositions 6. Planning a with feelings of 4. Recognising that course of action guilt or shame one’s discontent and the process of transformation is shared Phase 1 2. Objective is Phase 2 - Period Precedes unfocused of doubt, clash commitment to 3. Situation is of ideal and real learning global 4. With 1. Reaction to resolution of destabilising problems comes event is a commitment to decision to the project and learn new action Stage 1 Returning to experience Stage 3 - Reevaluating experience Stage 2 Attending to feelings Discernment: 1. Receptivity to symbols, images, meanings from the shadow, animus/a, archetypes OWNING Recognition: 2. Ownership acknowledgement that experience is authentic and connected to inner history 3. Grieving MII skills and Unfreezing transf ormat ion Recognising dysfunctional control - oriented theories of action Resolution “aha” stage, change in experience, learning, closure. 7. Acquiring knowledge and skills for implementing one’s plans 5. Learner acquires knowledge, skills, feels challenged Phase 3 Performance 6. Diffuse interpretation of actions, facts and global learning outcomes Phase 4 - Judgement 7. Learner judges new state as more stable a. Using b. Removing positive feelings obstructing feelings a. numbness of panic an open dialogue is b. pining and experienced as a protest loss and moves through four grief stages: OPENESS Changing: Re-framing theories-in-use to a learning orientation Establishing continuity of self with past, present, and future self. Deciding whether to take action 8. Provisional efforts to try new roles 9. Building competence, selfconfidence in new roles and relationships 10. Reintegration EXPERIMENT ATION c. disorganisation and despair d. re-stabilisation and reintegration Redesigning action Re-freezing: The first four of these models describe theories of learning based on data collected from the retrospective reflection of learners. Visual Management Software The set of schemes above shows how abstract the proper management is. Therefore, it is useful to visualise it. Why don’t use software visualising management tasks. Visual management software we want to use is called Aperture and it is an open systém. It is up to you how to visualise the most important abstract management problems in this software. Diagrams and drawings are commonly used to communicate complex information. A road map is a good example of visual information because it shows the location of cities and highways that connect them. The architect’s blueprints show the layout of a building and the way it will be constructed. An organisation chart is a visual layout of the reporting structure of an organisation. Visualisation of above mentioned management considerations should not be forgotten. Aperture software offers you following tools: 8. Communication: Participants like readers, writers, and designers have different responsibility. Readers are attracted to become clients or customers. Writers insert their data to verify impact of their decisions. Designers open new opportunities for readers and writers. 9. Visualisation: Drawings, composed by regions contain data from database below. Symbols are icons below which data are appended too. Symbols are stored in library. Drawings are layered and layers are named for higher distinguish-ability. 10. Drawing systém: Aperture includes a high precision, full-featured, professional drawing systém. The same drawing can be printed on a single page or multiple pages, scaled to your specifications, and printed on laser printer, multicolour printer, or pen plotter. On monochrome monitors colours can be specified by numbers. 11. Drawing Methods: Whenever a drawing tool is selected, Aperture will add and entry to the menu bar dedicated to it and its capabilities. For example when a line tool is selected, an entry called LINE, will be added to the terminal position on the menu bar. 12. Importing and exporting: Aperture is intended to incorporate existing information, both drawing and data. When objects are transferred between Aperture Drawings, all the drawing attributes including layering, style, symbol, linking information, and data will be copied and entered into new drawing. If the Database has not yet been defined for the destination Drawing in another Project, Aperture will define the imported Database Record Types. Financial Services and Practices You should read and understand to following headlines: Competitors and C.N.C. The product environment and role of intermediaries Intermediaries in this country Aspects of product’s benefits / parameters C.N.C. as product intermediaries Product service of C.N.C. Exercise about core products / services of C.N.C.: Answer the following True/False questions. True False 1. Loans cannot be made for a period exceeding five years 2. Loans cannot be made if the loan would make the member indebted in a sum greater than 15 % of the total credit union assets 3. All credit union loans must be secured 4. Loans can only be made for a ‘provident’ and productive purpose. The answers are: 1. T. 2. F - correct proportion is 10 %. 3. F. 4. T - but ‘provident’ is widely interpreted: The common saying ‘Not for profit, not for charity, but for service’ sums up this commitment. Obtaining a loan A member can obtain a credit union loan provided that the member can demonstrate: - the character of the member - that the loan is needed for a useful or productive purpose - that the loan can be repaid - how the loan will be repaid. Savings Savings within the credit union can take the form of either: - shares - deposits. Let’s look at each in turn. Shares One of the unique elements of the CU structure is that savings are generally made in the form of shares (of a nominal one pound value) which may be withdawable. Exercise: State two ways in which CU shares differ from the shares in commercial limited companies. Credit Union Company 1. 2. Answers: You will probably have thought of some of the following reasons: - CU shares can be withdawable (i.e. taken out of the CU by members/shareholders), unlike shares in a share company. - Shareholders in a CU only have one vote, irrespective of how many shares they hold:, in a share company, shares confer voting rights:, - CU shares do not change in value, unlike company shares for companies quoted on the stock exchange. - CU do not issue share certificates to shareholders. CU members cannot hold more than GBP 6000 worth of shares, whereas in a share company individual shareownership is unlimited. Exercise: List two restrictions on a member’s right to withdraw his/her shares. (You may want to refer to your rule book.) 1. 2. The restrictions are given in Rule 15 of the Model Rules: - the CU may require 60 days’ notice of an intention to withdraw shares - the CU will not allow withdrawal of shares while any claim due on account of deposits is unsatisfied - a member cannot withdraw shares if as a result his/her liability to the CU exceeds the remaining value of his/her shares deposits. Deposits Since member cannot exceed value of GBP 6000, excess savings are made in the form of interest-bearing deposits. Exercise: State two advantages and two possible disadvantages to CU of money held on deposit. Advantages Disadvantages 1. 2. We propose the following Advantages 1. Allows CU to bring in more savings. 2. May attract deposits from retail banks. Disadvantages 1. Money can be withdrawn more readily than shares. 2. Competitive interest rates may have to be paid. Budget accounts Budget accounts provide a facility for paying bills due on a regular basis out of which bills are settled. Money paid into budget account may be paid through payroll deduction:, such schemes are operating particularly in ‘industrial’ credit unions. Exercise: What sort of bills may be covered by budget accounts? Answers: Payments out of budget accounts might cover, for example: - ESB and phone bills - Mortgage payments - Home heating bills - Home insurance premiums, etc. 2.3 Other / insurance services Exercise: List three of the types of insurance available to members of CU 1. 2. 3. Answers: You might have included some of the following: - life savings insurance - loan protection insurance - house insurance - medical insurance In addition, individual credit union has to be insured covering areas such as: - fire and special perils - plate gass - motor contingency - public liability - employer’s liability - personal accident - loss of financial records, etc. Retrospective /Financial Statements and Accounting Principles You should read and understand to following headlines: Record keeping Double -entry book-keeping and the nominal ledger Financial statements Manual or computerised systems? Disclosure and presentation of financial statements Financial Planning and Risk Management You should read and understand to following headlines: Issues in financial planning Preparations of budgets Cash flow forecasts Risk management Financial Control and Use of Ratio Analysis You should read and understand to following headlines: Banking ratios and standards The savings protection scheme Financial ratios Delinquent loans Financial Service and Practices: Who is Involved? You should read and understand to following headlines: Financial services Accounting and financial statements Financial planning Financial control Business Law 6. Communication and Documentation You should read and understand to following headlines: munications: Issues and Skills When you have completed this chapter, you should be able to: 1. Explain the communication process, including non-verbal communications and communication styles 2. Describe how communication také place within the organisations, including networks, directions of communication, and informal communication 3. Describe barriers to effective communication 4. Discuss methods for improving communication in organisations, written communication and strategy related communication. Definitions: Communication = The exchange of information using a shared set of symbols Noise = Anything that distorts a message by interfering with the communication process Encoding = Translating information into a message in the form of symbols with a shared meaning Channel = The observable carrier of the message Oral communication = Communication in which the sender’s voice is used as the channel Written communication = Communication in which the channel involves written language Receiving = Registration of a message by one or more of receiver’s senses Decoding = Interpreting what a message means Non-verbal communication = Communication through a channel that does not use words Body language = Gestures, facial experessions, and other movements and positions of the body Personal space = The area around a person that the person feels a right to control (intimate, personal, social, public one) Johari window = A grid that describes tendencies for facilitating or hindering interpersonal communication Feedback Feedback Self KNOWN UNKNOWN Others KNOWN Arena Blind spot UNKNOWN Hidden Unknown Formal communication = Communication that flows along the organisation’s lines of authority or task responsibility Upward communication = Message directed toward (interpret to) a higher level in the hierarchy (problems and exceptions, suggestions for improvements, performance reports, grievance and disputes, financial and accounting) Downward communication = Message directed (influence) to one or more receivers at a lower level in the hierarchy (Implementation of goals, strategies, and objectives, job instructions, procedures and practices, performance feedback, indoctrination Lateral communication = Message directed to (co-ordinate) someone at the same level in the hierarchy (intradepartmental problems solving, interdepartmental co-ordination, staff advice to line departments) Communication network = The patterns of directions in which information flows in an organisation Chain network = Communication network in which information travels up and down through the hierarchy Y network = Communication network in which information flows upwards and downwards through the hierarchy, widening to encompass the number of employees reporting to a supervisor Wheel network = Communication network in which information flows to and from a single person Circle network = Communication network in which employees communicate only with adjoining members of the organisation All-channel network = Communication network in which information flows upward, downward, and laterally among all members of the group Informal communication = Communication outside the organisation’s formally authorised channels Grapevine = Network for informal communication Old-boy network = An exclusive group that wields power through shared information Jargon = Terms that have a precise meaning among specialists but are unfamiliar to non-specialists Frame of reference = Combination of experiences and expectations giving rise to a particular mind/set Filtering = Tendency to put a message in the most favourable terms possible, downplaying bad news and dwelling on successes Supportive communication = A style of communicating that delivers a message accurately while supporting and enhancing the relationship between the parties to the communication Active listening = Accepting responsibility for the accurate understanding of a message by helping the sender clarify its meaning Richest channel Leanest channel Physical presence (faceInteractive channels Personal static channels Impersonal static channels to-face) (telephone, electronic (memos, letters, reports (fliers, bulletins, media) tailored to receiver) generalised reports) Best for ambiguous, difficult, developmental messages Best for routine, clear, simple, risky messages Introduction The communication process When you have completed this section you should be able to: - describe the communication process - explain the difference between one-way, partial and two-way communication - list the advantages and disadvantages of one-way, partial and two-way communication - analyse communication interaction using the interactive communication model provided in this section. You should read and understand to following headlines: The communication process Communication methods Models of communication In this section we introduced you to the communication process by way of an overview. Firstly, we examined three basic components of communication, i.e.: - sender - message - receiver When then went on to analyse the different methods of communication, i.e.: - one-way - partial - two-way We illustrated each method and also looked at the various advantages and disadvantages of each one. Over a number of years there have been various models developed which provide a clearer understanding of the communication process. We used one of these models, the Interactive Communication Model, to illustrate the two-way method.The key processes involved are the coding, transmission and decoding of messages. We looked at each of the component in detail to help you to develop a fuller understanding of the communication process. Finally, we asked you to apply these components to a case study to test your understanding. We will now go on to Section 2 which will cover the non-verbal element of communication. Non-verbal communication When you have completed this section you should be able to: - identify the three communication interaction components and assess their relationship to each other - identify the three major components of non-verbal communication, i.e.: - - visual - - vocal - - environment and space - describe and appreciate the effect of: - - the various visual elements - - the role of voice tone and other vocal variations, and - - the significance of space, distance and environment in non-verbal communication. You should read and understand to following headlines: What are the components of communication Non-verbal communication The visual component The vocal component Environment and space Having worked through this section you should have developed a good ability to understand the main features of non-verbal communication and relate them particularly to the C.N.C. context. In particular, you will have addressed the key role played by non-verbal communication in the overall communication process. We described the components of the communication interaction processes: - visual - vocal - verbal and identified the amount each one influences the process. You will also have had a good opportunity to describe and apply the three key aspects of non-verbal behaviour, i.e.: - the visual element - the vocal element - the environment and space element Finally, you had the opportunity to integrate the different components of non-verbal behaviour and apply them to a specific situation. Listening When you have completed this section you should be able to: - identify the amount of time we spent on listening in average day - describe the four main facets of listening: -- listener -- speaker -- message -- environment and identify some of the barriers to effective listening - describe the significance of listening in the communication process and apply the active listening model - explain the three main listening skills: -- attending skills -- leading skills -- reflecting skills - use the listening checklist to asses and improve your listening. You should read and understand to following headlines: Listening time The facets of listening Listening and understanding The skills of listening In this section we have looked at the effective receiving of messages, I.E. the listening skills. Firstly we identified the amount of time we spend on listening in an average day. We then wen on to describe the four main facets of listening: - the listener - the speaker - the message - the environment and highlighted some barriers that hinder effective listening. We established that listening is not just about hearing the message but also about understanding, and we illustrated this with the active listening model. The three skills of listening: - attending skills - leading skills - reflecting skills were described and applied to various situations in your everyday workplace. Finally, you used a listening checklist to assess your listening skills and you should now be able to make plans to develop and enhance you listening capabilities. We now move on to Section 4 where we are going to apply the skills learned so far to interviewing. Interviewing When you have completed this section you should be able to: - define an interview - describe thedifferent types of interviews and their purposes within the C.N.C. - adopt a structured approach to the interviewing process, i.e. -- the planning stage -- the opening stage -- the body of interview -- the closing stage - identify and apply the key skills used in interviewing. You should read and understand to following headlines: What is an interview? Types of interviews Interview structure The skulls of interviewing In this section we used our acquired skills from the earlier sections and applied them to interviewing situations. Firstly, we established what is an interview and altough initially most people would associate this with getting a job, we saw how inteviews are used in many other businesses and personal situations. We went on to cescribe these various types of interviews, i.e.: - appraisal interviews - counselling interviews - disciplinary interviews - information gathering interviews. If you are to carry our successful interviews then they require careful planning. We discussed warious ways of preparation before the actual meeting and then looked at the actual interview with regard to opening the meeting, the main part or body of the meeting and eventually bringing the interview or meeting to a satisfactory conclusion. All the skills learned in previous sections, i.e. non-verbal behaviour, listening, questioning, etc. were all related to the interviewing process. Finally, another case study was used to apply these skills. In section 5 we will look at communication within groups or teams. Communication in groups or teams When you have completed this section you should be able to: - identify the main groups in C.N.C. - define the group and describe its key characteristics - outline the benefits and disadvatages of group decision making - plan and run effective meetings - describe the range of management styles used by group leaders - describe the task, relationship and individual activities performed in groups - describe the stages of the group development - list the eight roles suggestd for effective group functioning. You should read and understand to following headlines: The role of groups Definition of a small group Benefits and disadvantages of group decision making Making group meetings effective The role of the group leader Group dynamics This section has taken us from the purpose of groups through to developing an effective group. Firstly, we identified the main groups in the C.N.C. movement. We defined a group as being a small number of people who have a common purpose or goal:, this is achieved by each member contributing and interacting at meetings to achieve their goal. We then discussed benefits of group decision making, i.e.: - higher quality of decisions - higher level of acceptance and commitment. and disadvantages: - the time spent at meetings - the poor output from meetings. The key issues to make meetings work effectively were outlined, i.e.: -establishing the purpose - planning - informing those involved - preparing - structuring and controling - summarising and recording. The importance of the group leader was highlited and the different management styles were briefly examined. The interaction of members within a group - task, relationship and individual - were explained and you were asked to observe group members at one of your meetings. Finally, we examined the process of group development and the eventual composition of a group using Belbin’s eight roles. We will now move on to the final section in this Unit which will deal with written communication. Written communication When you have completed this section you should be able to: - describe the advantages and disadvantages of written communication - identify the key qualities of effective writing - describe the main elements of writing a plan -- purpose of writing -- audience analysis -- organisation of thoughts -- researching the subject -- first draft construction and editing of draft -- reconstruction of final draft - list the main aspects of writing busineess plan - outline the standard features in writing memos Why written communications? Communicating messages in writing may seem more formal and inflexible than the same messages delivered in face-to-face interactions, but they are especially suited to delivering formal, and sometimes complex, items of information. Exercise: There are several advantages and disadvantages of written communication. Under the headings of advantages and disadvantages, we have provided one example of each. Can you identify at leas one other? Advantages: Better for difficult or formal messages. Can be reviewed. Disadvantages: Written communications can appear to be very time-consuming. Answers: Other advantages which you may have included are: - useful when a written record is required for reference purposes - can be both written and read when the parties (sender/receiver) wish - can be carefully planned and designed before transmition - errors can be removed before the message is transmited. Disadvantages include: - feedback on the message is delayed or may be non-existent - the writer can never be sure the message is read - some people do not like to read - absence of non-verbal clues which assist in the interpretation of messages - may seem formal and lack warmth and individuality - many people do not, or believe they do not communicate well in writing. Research by Randall Majors (1990) in Business Communication suggested that while writing is a requirement of all formalised education and most business careers, that most people ‘if at all possible avoid writing’. Exercise: Some of the negative attitudes to writing are based on past experiences. Can you suggest, from your own experience, what these might be? Answers: If you have any negative attitudes to writing they may be based on: - earlier school experiences - the relevancy of what was written - gramar and punctuation drills, etc. Beyond the value of writing in the C.N.C. setting, writing can also be enjoyable - but only if we develop a solid set of relevant and basic skills. As we develop our abilities to write clearly and gracefully, we will become more comfortable with expressing our thoughts on paper. We will now look at developing these effective writing skills. Effective writing Different kinds of letters are produced to be sent outside your organisation:, memos are written for internal use:, reports are presented at annual meetings. Writing takes time and money. Some business companies estimate that the average business letter cost about GBP 10 when the writer’s time, the typist’s time, and the stationary and postage are calculated. It is essential therfore that communication in writing is used effectively. The skills used for effective written communication can be acquired, developed and improved. Criteria for effective writing Exercise: Your organisation has purchased computer equipment which has not been delivered. You have received a letter from the company regarding the delay. Which of the following effective communication criteria might be of value to the writer of this letter: Very Not Important Important Important Accuracy: What are the precise facts about the delivery? What is the delivery date? Clarity: What are the reasons for the delay? Completeness: Has everything been said that needs to be said? Appropriateness: What tone will the letter have? How can the company maintain a positive relationship? Dynamism: What kind of image do I want to project? How personal do I want to be with the reader? You may have regarded them all as being very important or perhaps have ticked accuracy and clarity as more important then others. We will now look at these elements in more detail. Accuracy When information is inaccurate, at best it can make understanding difficult, and at worst it may result in lost time, money and credibility. The effective communicator strives for zero defect correctness. Exercise: What do you think a writer needs to do to achieve zero defect correctness of any correspondence. Basically, the writer needs to: - check facts - proof read for errors - seek to control accuracy in references, spelling and grammar. Sometimes we see what we expect to see rather than what is actually on the page. Computer systems are very sudeful, but ultimately the writer is responsible for accuracy, e.g. spelling checkers do not identify - properly spelled words improperly substituted for other properly spelled words:, examples include: -- form when from was intended -- is when in was intended Clarity Have you ever tried to look through a dirty window? You can see shapes and movements, but you may not be certain about the detail of what you are observing. Some written communication may have the same effect. Effective written communications needs to have clear: - purpose - structure - language in order to avoid confusion or misunderstanding. Clarity of purpose Clarity of purpose is achieved by analysing your writing goal in advance of communicatin. You can do this by asking yourself: - Why I am writing? - What is my real reason for writing? - What I am hoping to achieve? Change of attitude / opinion? - What is my purpose? -- to inform -- to persuade -- to influence -- to educate -- to entertain. Clarity of structure The overall structure of your message is also important, i.e. have you presented your ideas in a logical way? The time spent organising your message before you commence writing may save both you and the reader significant time later. Various approaches or methods are used in organising ideas /information before you begin to write. Two such methods are: - the traditional outline method - the decision tree method. We will be looking at the outline method in sub-section 6.4, developing a writing plan. Figure 1 provides an example of a decison tree. Costs Quality service Dividend on Shares Personal and Professional Service Interest at 1 % per month on declining Opening hours Mon-Sat balance 10.00 am - 5.00pm Community orientation Insurance cover at no extra costs Member owned and controlled Join the Credit Union (Desired Decision) outcome - The trunk is the outcome you seek - the decision you want your reader(s) to reach. - The major branches are significant points you will need to make in order to convince your reader(s). - Ideas, evidence, etc. are filled out by smaller supporting branches. The decision tree method makes it easy to organise your ideas as you think of them, regardless of the order in which you think of them. Clarity of language As a writer you create clarity of language by thinking about: - who your audience is, and - what she or he knows. Exercise: Can you give an example of a concrete terms as opposed to an abstract term? Our examples are: - Saturday is more concrete than sometimes this weekend - three is more concrete then a few. Remember, before writing ask yourself: - Who is exactly my audience? - What sort of person is she? Education? Age? Status? Personality? - How is she likely to react to the You should read and understand to following headlines of my message? - What does she already know about the subject of my message? -- A lot? -- Not much? -- Nothing? -- More/less than I do? Completeness As a communicator, you need to determine how much you should say in written message. It may be difficult for you to decide how much information is sufficient without writing toom uch or too little. In general, written business communications should be concise and to the point. You should avoid extraneous details. One good technique to ensure completeness may be to put yourself in the possition of reader and ask yourself: - What questions is the reader likely to ask about the topic? - How much information is needed for the reader to do what you want? You should seek to anticipate responses of the reader to these questions and also to supply information that may be needed at the next stage of communications. By this we mean that you should not force the reader to request information that you should have included in the first place. In summary, completeness can be developed by seeking to answer the following questions: - What exactly do I want to communicate? - What do I need to say? - What does the reader need to know? - What information / detail can I omit or should I include? Appropriateness The key to successful writing skills for communication is the appropriateness of what and how you write for the context and the audience. Be clear of what you want to say. Be clear about how it will be received. We will address two areas of appropriateness: - verbal and non-verbal elements - common courtesies. Verbal and non-verbal elements The writer’s values may be transmited simultaneously by the verbal and non-verbal elements in a piece of written communication. For example a job applicationhastily hand written on foolscap paper may contain all the necessary information (verbal element) but a prospective employer may find the medium (non-verbal element) to be inapppropriate. Exercise: When writing a letter, how would you take these values into account? Answer: You should seek to send messages of: - respect - sensitivity - positive regard both in the language and format you select. Elements such as: - the paper - the typing - the layout of information on the page - the neat appearance of the material communicate important messages regarding the writer and reader. Dynamism Effective written communication hold the reader’s attention and make him want to read more of what you have to say. Dynamism is the expression of the communicator’s personality in his writing or speach. This aspect of the written communications process becomes more important when you seek to influence the reader to do somethink. Example: Can you give an example of when you might be trying to influence a decision from a reader in which the use of dynamism would be important. Examples include: - to avail of services being offered - to follow a proposed course of action - to agree with your views, etc. We will now look at various aspects of written communication which will make it more dynamic, i.e.: - word choice/writing style - emphasis - repetition - active/passive voice. Developing of writing plan The previous section considered the five qualities of effective communication viz., - Accuracy - Clarity - Completeness - Appropriateness - Dynamism You should keep these qualities in mind as we work through the writing plan. Many writers on Communication suggest different elements for writing plans. However, the six steps or techniques outlined here are included by most writers: 1. Purpose of writing, i.e. what is your goal 2. Audience analysis, i.e. what do you know about the reciever(s) 3. Thought(s) organisation 4. Subject research 5. Construction and editing of first draft 6. Reconstruction the final draft. We look at each of these six steps. 1. Purpose of writing What I am trying to achieve with this letter / memo / report? Do I have a specific goal? Are my goals / purposes in writing clear? These basic questions which some of us neglect to either pose and /or answer before we commence writing. Our sence of direction may suffer, but what about the unfortunate reader! The purpose of writing may be to: - inform - persuade - communicate negative information - impress - teach - entertain. Each of these situations is different and the purpose of writing is different. 2. Audience analysis One of the best approaches for clarifying your reason for writing is to see the situation from the reader’s point of view, i.e. What does the reader want? In many situations we are required to write because reader (reciever) request information from us. If you: - analyse your audience, and - anticipate what they need to read this approach may help you to focus on what you need to say in your written message. Knowing the audience may also help you determine what not to say. Sometimes material we write is irrelevant because the reader already knows much about the matter. The format for your written presentation and the language you should use will also be dependent on your understandingof your audience’s education, attitudes and values. If what you write is boaring or demotivating for your readers then you risk losing their goodwill and your creditability may suffer. If you use language which is cumbersome and difficult to interpret, you may confuse your readers and they may misunderstand your message. Knowing your readers and seeking to pitch your material in a non-patronising manner at their level, is an important element in writing. 3. Thought organisation Having determined your purpose and analysed your audience, you are now ready to begin the actual construction of message. A helpful way to begin construction is wtih a short blueprint, i.e. skeletal plan that will generally direct your building of message. Exercise: What do you think is the benefit of a skeletal plan? Answer: Thinking on paper allows you to jot down your ideas in any form before you start to arrange them logically. Having drafted a preliminary outline of points and thoughts and issues to be covered, you can then return to delete some ideas because they maybe irrelevant, or indeed add new ideas that would improve the balance and tone of the message. Remember, however, that the outline is just a planning document:, it should grow and change as the message is developed. In a long written communicationthe outline may contain seven or eight points, each of them refering to different paragraphs in the communication. Planning gives an orderly and organised approach whichwill become evident to the reader in the written communication. 4. Researching your subject In many instances your own experience and knowledge will supply you with the information you need to send your written message. In other situations, you may need to do research. In either case you need to consider very carefully the information you have assembled in your outline and evaluate its: - relevance - sufficiency - authority. Exercise: What do you understand by these terms in this context? Answers: Information is relevant when it applies directly to the issue at hand in the message. You must determine which information is most relevant to suit the purposes of the receivers and yourselves as you focus the message. The inclusion of relevant information may attract the receiver’s interest and attention because it is seen as usefull and practical. Sufficiency of information means that enough material and examples are offered to explain the central points in the written message. As senders of messages we can sometimes err in either direction. - If too much information is contained in the message, the receivers maybe overhelmed and/or bored by the amount of detail. - If too little information is offered, the message may remain unclear. You need to find the proper balance in the amount of information you provide in the written message. Authority in information is determined by the credibility of the message source. In some areas the opinions and beliefs we show with authority are more important than personal opinion. We need to ask ourselves questions in this regard. - How detailed do I need to be in the presentation of my information? - How specific do I need to be? - How exact do I need to be? 5. Constructing and editing the first draft Having assembled your items of information and thoughts to be presented in your message you are now ready to begin construction of that message. One effective approach is to write a number of drafts before you complete the final effort. Exercise: How would this help? Answers: If you are working on your firs draft, whether letter, memo or report, it does not have to be perfect so you may feel freer to experiment with different words, formats or approaches. The use of a multiple draft approach could help those writers who suffer from ‘writer’s block’ i.e. the inability to commence writing. Some people point out that the only way to write well is to rewrite, rewrite, and rewrite. A significant stage in this process is editing your first drafts. You need to examine your draft for clarity and accuracy. Exercise? What areas you look at to ensure clarity and accuracy? Answers: You need to look at the following: - Is the purpose clear? - Are your points clearly stated? - Are your facts accurate? - Is the spelling correct? - Have you covered you area thoroughly without incorporating irrelevant detail? - Is your choice of medium suited to the situation? - Is your language appropriate? - Have you communicated energy and a sense of personality in your written message? These factors should also be taken into account as you redraft and edit your message. Careful attention to detail gives you the chance to make corrections and changes before you formally communicate in writing with your reader. 6. Reconstructing the final draft This is the last stage in you planning process and takes advantage of all that has gone before. By clearly: - determining your purpose - analysing your audience - organising material - researching your facts and information adequately your draft should now be in the form of an effective message. Careful editing and revision of this draft will allow you the opportunity to strengthen and enhance the final product. This attention to detail, quality, and reconstruction may take time but, if you are concerned about the effectiveness of your message then your final product will be worth all your effort and energy. Exercise: It is said that good communication ultimately can be reduced down to two principles. Can you name them? Answers: The two principles are: - pcareful planning, and - attention to detail. The more you will work with these tools and the more familiar you become with how they operate for you, the more effective will become your written communications. Letters and memos We will now look at the difference between letters and memos. Letters and produced to be sent outside the organisation where as memos are written for internal use. The writing plan outlined above can be applied to letters and memos in terms of the steps necessary to attain quality in the final product. Letters Santon 1990 outlines the following principal types of business lettes and the purpose of writing them. Principal Types of Business Letter Purpose to seek information, opinion, confirmation To give information, opinion, confirmation To seek reparation of some fault of defficiency To accept the claim, provide reparation To place an order for goods or services To confirm acceptance of an order To give an estimate of price, time, etc. To give a final price, time, etc. To sell goods or service To remind of sales offers To advertise goods or services To authorise advance of credit Check or comment on credit worthiness or rating To obtain payment of a debt Letter classification Query Area General Acknowledgement General information Complaint/claim General Adjustment General Order Ordering and estimating Confirmation of Estimate Ordering and order estimating Ordering and estimating Tender Sales Letter Follow-up sales letter Non-solicited sales letter Letter of credit Credit reference inquiry / reply Ordering and estimating Sales and advertising Sales and advertising Sales and advetising Financial, and credit management Financial, and credit management Collection (various stages - usually Financial, and credit management 1,2 ..3) Each type of letter makes its own demands on us as writers. However, if we approach it in a structured and planned manner, we may find the task easier then we expected. Memos Memos are internal letters in an organisation. Exercise: There are five elements which are used in the drafting of memos. Can you name them? Answers: The five elements used most commonly in drafting memos are: 1. The title line 2. The sender line 3. The reciever line 4. The date 5. The subject line All memos should have these elements in some form. The following is a simple example of the features of a standard memo. Memorandum To: From: Date: Subject: - The title line (Memorandum) is necessary to identify immediately that this is and internal document. - The receiver line (TO:) identifies the intended recipient(s) of the written message. The readers may be either an individual or a group of people. - The sender line (From:) identifies the writer of the memo. - The date line is important for filling and maintaining records of actions taken. - Finally, the subject line should include both the general subject area and, where possible, some specific points regarding the purpose of the memo. In writing and effective memo the following points may assist as you plan and write. - make sure the memo is necessary - clarify purpose and grab attention - organise the body of the memo for easy reading - use informal, professional language - keep your tone possitive. Purpose of memos Memos are written for a number of basic purposes, i.e.: - to inform - to persuade - to document actions or ideas. Informative memos: Exercise: Can you identify at least four informative uses for a memo? Answers: An informative memo can: - Give instructions - Announce a meeting - Record minutes of a meeting - Announce policy changes - Request a meeting - Explain process - List job duties - Post policies and rules - Provide project timetables - Offer feedback Persuasive memos: Exercise: Can you identify four persuasive pruposes of memo? Answers: Persuasive purpose may include the following: - Propose an improvement - Recommend a purchase - Recommend a procedure - Support a position - Ask for C.N.C.eration or support - Ask for a raise - Motivate people to attend a meeting - Solicit volunteers - Sell a product or service - Motivate compliance Documentary memos: Exercise: Give one example of a situation that would need to be documented in a memo Answers: Examples of situations that might need documentation are following: - On being hired, a new employee is promissed a raise in six months. - A superior has required an employee to perform a certain task which the employee feels will result in ‘disaster’, for example, delaying the reordering of paper goods until after a heavy work period. - An employee has a telephone conversation with a member that may have serious consequences:, for example, the member/customer threatens to terminate membership unless a specific action is taken. - A manager observes unethical behaviour in an employee and wants to document it in the employee’s personnel file. Another use of the documentary memo is to demonstrate excellent performance. Memos can show that employee: - has good ideas - can express them well - take initiative to propose improvements and solutions - has good problem-solving skills - is sensitive toward people, and - is assertive and decissive. You can use documentary memos to advance your career by putting onto paper: - your innovative ideas - perceptions of problems - proposed solutions - recommendations. If you document your ideas by means of memos, you are more likely to get credit for them and to be percieved as a valuable employee. You might wish to document situations such as the following: - propose an improvement - suggest the solution to the problem - bring attention to a hidden problem with serious consequences - share praise, be thoughtful, give compliments, express appreciation. Summary Writing as an essential part of the communications process involves us in sharing with a receiver a message full of information, thoughts and ideas. We need to approach it in the same thorough manner as any part of the communications process. Planning and attention to detail are as essential here as they are in other sections on communications. Written communications, as we have seen in this section, are required on occasions when formal records are necessary and can be planned and checked before transmission. We looked at several advantages and disadvantages of written communication and outlined some of the reasons why we may have negative feelings towards writing. The criteria / characteristics of effective writing, identified by Majors 1990 and other researches, were outlined, i.e.: - Accuracy - Clarity - Completeness - Appropriateness - Dynamism. You should use these elements as general criteria to be followed when you are constructing your written comm unications. The writing plan is a more specific activity and builds on these general characteristics. Together they constitute an overall framework for writing. The last section focused primarily on the role of memos and letters and various elements in the writing of memos (internal letters) were outlined. We also identified different kinds of memos, i.e. - informative - persuative, and - documentary. This concludes the module on Communications and we wish you luck with the remaining part of your study programme. Documentation: Output, process, responsibility Management use standards, methods and assessments to find and gain its objectives. Standards set up the output, methods the process, and assessments the responsibility. Organisations use bylaws, company’s policy manuals, successive limiting policy by hierarchical level, procedures, rules, programs, and budgets. You can find principals of all of these elements in ISO 9000 family standards helping implement and operate quality management systems. Methods, managers’ use, have different origin, purpose, and reliability. Methods help to gain objective in limited time with limited resources. Minimal reliability emerge when relations among management responsibility, resource management, product realisation, measurement analysis and improvement are continuously improved from customer’s requirements to customer’s satisfaction (ISO 9000). Documentation clarify these principals preventing failures. Documentation enables communication of intent and consistency of action. It is therefore a necessary element within a quality management system. Its use contributes to: A) achievement of product and quality improvement; B) provision of appropriate training; C) ensured repeatability and trace-ability; D) provision of objective evidence; E) evaluation of effectiveness of the system The production of documentation should not be and end in itself but should be a value-added activity. There are several types of document used in quality management systems: a) documents that provide consistent information, both internally and externally, about the organisation’s quality management system; such documents are referred to as quality manuals; Quality manual contains usually the quality policy, objectives, details of organisational structure, a description of the quality system, details of the quality practices of the organisation, details of the nature of quality system documentation. b) documents that describe how the quality management systém is applied to a specific product, project or contract; such documents are referred to as quality plans; c) documents that provide consistent information about how to perform activities; such documents are referred to as procedures; d) documents that provide objective evidence of activities performed or results achieved; such documents are referred to as records. Each organisation or individual supplier determines the extent of documentation required and the media to be used. The size of documentation is dependent on the task definition. Assignment: Remember the case study about Business Innovation Centres Management. Define tasks for squatters, for autocratic managers, offensive management, for your team, and for yourself in the table below Strategic Business Units: Corporation Division Business Planning by advisers Potential maximisation - strat. Market. Plan - niche marketing - quality not price - MBO Right first time - Know your product - Market - Competition Company re-launch - Analyses - Management structure research - Recommendations - Conclusions Implementing by extensioners Delivery standardisation - ISO 9000 based MBO implementation - Flattening the org. Structure Entry program - Identification - Objectives - Procedures - Action’s program Marketing planning - Overview - Objectives - Strategies - Special actions Control by personnel or outsourcing Personality transformation - Honest sales - Successful presentation - Pitfalls implementation Personal diversity - How to enter - How to monitor - How to correct Expansion planning - Company marketing - Product marketing - Knowledge expansion (tools, self-evaluation, weekly plan) implementation New management structure Beginners and entrepreneurs - Mission - Resources - Objectives - Programs - Product Project management - Company promotion - Objectives confirmation - MBO - Market knowledge - Market strategy Team work - Who does what - Procedures - Sale by action - Review meetings - Personal analyses Questions: 1. What to communicate downwards? 2. What to communicate upwards? 3. What tools and how to use for lateral communication? Pittfals Top Ten Things a Consultant Shouldn't Tell a Client 10. That was my first guess as well, but then I really thought about it. 9. You should see the hotel I'm staying at. 8. Hey, I just realised that I was in junior school when you started working here. 7. I like this office space. I'll have them put me in here when you're gone. 6. My rental car looks nicer than that junk you're driving. 5. Sure it'll work; I learned it in business school. 4. So what do you need me to tell you? 3. Of course it's right; the spreadsheet says so. 2. I could just tell you the answer, but we're committed to a three month project. 1. What are you, stupid? Top Ten Ways to Know You've Got the Consulting Bug 10. Can't stop using words that don't exist. 9. Worried that he who dies with the most frequent-flyer miles wins. 8. Use so much jargon in conversation, friends think you're speaking a foreign language. 7. Constant urge to give advice on subjects you know nothing about. 6. Always-hyphenating-words-that-don't-need-to-be-hyphenated. 5. Keep seeing bullet points everywhere. 4. Can fit the thematic undercurrents of War and Peace into a two-by-two matrix. 3. Tired of having a social life beyond work. 2. A two-page story in Business Week is all it takes to make you an expert. 1. Firmly believe that an objective viewpoint means more than any real work experience. Top Ten Things You'll Never Hear from a Consultant 10. You're right; we're billing way too much for this. 9. Bet you I can go a week without saying "synergy" or "value-added". 8. How about paying us based on the success of the project? 7. This whole strategy is based on a Harvard business case I read. 6. Actually, the only difference is that we charge more than they do. 5. I don't know enough to speak intelligently about that. 4. Implementation? I only care about writing long reports. 3. I can't take the credit. It was Ed in your marketing department. 2. The problem is, you have too much work for too few people. 1. Everything looks okay to me. Top Ten Things You Shouldn't Say at a Consulting Interview 10. I'm a t-shirt and jeans kind of person. 9. Do you pay overtime? 8. I hate flying. 7. I'm useless without ten hours of sleep a night. 6. There are lies, damn lies, and statistics. 5. Do you cover rental cars for collision? 4. Oxford taught me that working in teams is great for slackers. 3. I think three letter acronyms are for people too stupid to remember whole phrases. 2. Two words: family first. 1. Call it what you want, it still means firing people. 8. Managing Groups: Conflict, Stress, Change, Meetings Facilitation You should read and understand to following headlines: Communication, decision making, groups, teams, power and politics, conflict and stress When you have completed this section you should be able to: 1. Describe the different types of groups to which people belong 2. Explain the reasons people and organisations form groups 3. List the stages of group development 4. Describe the characteristics of effective groups 5. Discuss obstacles to group productivity 6. Discuss ways groups can increase productivity 7. Distinguish between ‘constructive’ and ‘destructive’ groups 8. Describe characteristics of an effective team 9. State the benefits to C.N.C. and similar organisations of teamwork 10. Discuss the role of teamwork in organisations, focusing on basic assumptions of teamwork 11. Define and describe self-directed work teams 12. Explain why organisations use teams 13. Explain the conditions for successful teamwork 14. Identify the phases of team development 15. Discuss manager’s roles when an organisation uses teamwork Definitions: Definitions are divided to measure two personal approaches, the dependent (group affiliation) and independent (team building) one: Group = Two or more employees who have an ongoing relationship in which they interact and influence each other’s behaviour and performance Informal groups = Groups that evolve to meet social or affiliation needs by bringing people together based on shared interests or friendship Formal group = A group set up by the organisation to carry out work in support of the organisation’s goals Command group = A group consisting of a manager and employees reporting to him or her Task group = A group consisting of employees who work together to complete a particular task or project Reference group = A group used as a basis for comparison in making decisions or forming opinions Membership group (or affiliation group) = A group to which a person belongs, sharing its benefits and responsibilities Role = Pattern of expected behaviours associated with a certain position in a group Role structure = The set of roles and relationships among roles that has been defined and accepted by group members Norms = Accepted standards for the behaviour of a group’s members Pivotal norms = Norms governing behaviour that is absolutely required for continued group membership Peripheral norms = Norms governing behaviour that is desirable – but not essential – for continued group membership Cohesiveness = The commitment of members to a group and the strength of their desire to remain in the group Status = The degree of worth and respect that individual group members are accorded by other members of the group Disjunctive tasks = Task that can be completed through individual efforts of group members Conjunctive tasks = Task where each person’s efforts are tightly linked to the efforts of others; group members are highly interdependent Additive tasks = Tasks where productivity is measured by adding together the output of each group member Diffusion of responsibility = Member’s view that responsibility for groups tasks is divided among the group, rather than being the burden of and single group member Role ambiguity = Uncertainty about the content of an expected role Role conflict = Contradictory or mutually exclusive expectations concerning a person’s role(s) Role overload = A condition in which expected roles exceed group member’s abilities Social loafing = Doing less than one’s share of work on the assumption that the group’s results will not indicate one’s failure to contribute Production blocking = Limiting another person’s output by getting in his or her way Co-operative group reward = A reward tied to the group’s overall performance, with each member receiving the same reward Competitive group reward = A system of rewarding individual group members for successfully performing as individuals within the group Team = A relatively permanent work group whose members must co-ordinate their activities to achieve one or more common objectives Differentiation = The extent to which team members are specialised relative to others in the organisation Integration = The degree to which the team must co-ordinate Advice/involvement team = A team formed to generate input from a broad base of employees Quality circles = Advice/involvement teams that routinely handle quality issues Production/service teams = Teams charged with the activities related to producing and selling goods and services Project/development team = A team charged with planning, investigating, analysing, and reporting, often with the objective of creating complex and unique outputs Cross-functional team = A team with members from several functions that is responsible for a project that crosses functional lines Action/negotiation teams = A highly differentiated, highly integrated team Self-directed work teams = Teams that have ongoing responsibility for an entire work process or segment Limited self-direction = The establishment, at some sites, of work teams whose members have multiple skills, and are responsible for managing their efforts to carry out a well-defined segment of work Total self-direction = The assignment of virtually every employee in the organisation to a self-directed work team Team building = Evaluation of a team’s performance and culture to end destructive behaviours and strengthen constructive behaviours Diagnosis = Function of team building that involves identifying functional and dysfunctional aspects of interactions among group members Development = Team building function that involves establishing a means of identifying and resolving future problems Role therapy = A training technique in which a consultant participates in team activities temporarily to stimulate improvements in group processes Conflicts and Conflict Resolution When you have completed this section you should be able to: - evaluate positive and negative aspects of power - describe some of the main causes of conflict within organisations - state ways of resolving conflicts. You should read and understand to following headlines: Power and empowerment Conflict in organisations Conflict resolutions In this section we have looked at power, conflict and conflict resolutions. The first part of the section dealt with the meaning of power, and particularly examined its individual aspects. We discussed the five key sources of power in relation to C.N.C., and considered and ‘inverted hierarchy’ model to describe power relations in a C.N.C.. We also discussed how C.N.C. can bring about ‘empowerment’. In the second part we looked at conflict in organisations. We noted that conflict can exist in all organisations, and we discussed conflict under three headings: - conflicts over goals - conflicts between personalities - conflicts over attitudes towards work. Finally we discussed conflict resolution. We first noted that there are two different management views about conflict and how to deal with it: tha main point is that to some degree conflict is inevitable and can have positive result. We discussed ways of conflict resolution, at organisational level (grievance procedures, etc.) and in group situations (methods of conflict resolution at meetings). Conflict resolution There are two differing management approaches to conflict: - the ‘traditional’ view - that all conflict is ‘bad’ and should be avoided - the ‘interactionist’ view - that a certain amount of conflict is ‘good’ and should be encouraged. Exercise: Why do you think that anyone might want to encourage conflict? Suggest two reasons. 1. 2. Answers: You might have come up with two of the following: - it keeps the organisation and people within it ‘on their toes’ - it prevents the organisation from becoming too routinised and fossilised, resistant to change - it can result in better decisions, because discussion is opened up and more options are considered - it encourages a ‘self-audit’ of the organisation, a kind of SWOT analysis which might lead to improvements. The differences between two approaches are summarised at exercise answer However, unresolved conflicts can certainly be destructive, therefore we might aim for a synthesis between the two views: - conflict, in the sense of the expression of differing views, is healthy and should be encouraged - on the other hand, conflicts which are allowed to drag on and become personalised, are destructive and need to be resolved - encouraging conflict for the sake of it does not seem a particularly sensible approach: it is beneficial primarily to the extent that an organisation considers options openly ad critically. There is, therefore, a need for conflict resolution under some circumstances. We will look at two types of solutions transferring and preventing personal conflict to the: - conflict resolution at the organisational level - conflict resolution in group situations. Organisational level By this we mean the development of procedures and structures within the organisation to deal with conflicts. If conflicts do develop at the individual level, whatever the initial course, it may be important to have some form of grievance procedures. This might apply particularly to staff who are employees of the C.N.C., but could also apply to volunteers: as we noted in Unit 2, volunteers have expectations and rights as well. There may be role for Trade Unions where grievance arise, if the staff are unionised. A further step in dealing with conflict, or rather, turning conflict from being a negative force to being a positive one, is training. It may be useful for C.N.C. to organise training for Board members and others in participatory forms of management, with the aim of encouraging members to look at ideas critically but constructively, rather then just to pick holes in them. Group situations Here we refer to the way in which conflicts can be handled in meetings, for example: - the role of Chairman as facilitator, encouraging the full discussion of all issues - the structure of the meeting: for example, people may be more prepared to air views on a matter causing conflict in small groups, rather than in a large meeting - the choice of decision-making method: both majority voting and consensus forms of decision-making can potentially leave behind a minority of disseminating voices, although if the consensus process is carried out thoroughly at least there should have been a complete airing of views. We can also briefly list some guidelines which you should be aware of if you are in a group situation involving conflict, and which you might use, for example if you are chairing/facilitating a meeting: - Accept a conflict as natural - treat it as a potentially positive force for reaching better solutions. - Don’t allow conflicts to remain hidden - bring them into the open, but not in a personalised way. - Don’t personalise conflicts - deal with the ideas. - Make sure that the problem is shared, don’t turn it into one individual’s problem. - Try to focus on the central issues in the conflict. - Don’t polarise conflicting positions: ‘are you out’? Try to keep people’s minds open to the wide range of options that might exist. - Don’t compromise too quickly: the best solution may not be a simple ‘average’ of two conflicting views, there may be another solution better than both of them. - Try to remain ‘neutral’ if you are not centrally involved in a conflict: try to keep an open mind, although eventually you will need to take a view yourself. - Try to be aware of your own feelings and be able to communicate these to others (this is particularly relevant to someone centrally involved in a conflict). The same is true when it comes to making a decision: why are you choosing a particular course of action, is it just to fit in with others, or do you really support it? - If a conflict gets too heated, it might be a good time to take a short brake or ‘cooling-off’ period. - If a conflict can’t be resolved in a normal meeting, it may be better to arrange a special meeting solely to deal with the particular issue. based on Center for Conflict Resolution, Building United Judgement: A Handbook for Consensus Decision-Making, 1981 Exercise: Think of any conflict that you have observed or been involved in in your C.N.C.. What was it about? How was it dealt with? Was it dealt with effectively? Answer: There is no single ‘answer’ to this. But was it a conflict about goals? or about personalities? Was it resolved through compromise? a special meeting? disciplinary action? Was this way the most effective way to resolve the conflict? Q: In the context of C.N.C., discuss ways in which power may be used for either positive or negative ends. Suggest at least three examples of each. Conflict in organisations Conflict does exist in C.N.C., as it does in all organisations: what is important is to understand the source of the conflict and how to resolve it. There are, needless to say, a variety of ways of looking at conflict. Although some conflicts may simply be result of personality clashes, it is quite likely that even these conflicts are generally by some aspect of the organisation, for example: - Conflict over allocation resources - Conflicts generated by actual or perceived differences in status within the organisation - Conflicts caused by inconsistent allocation of tasks between individuals. We look at three types of conflict: - Conflict over goals - Conflicts between personalities - Conflicts over attitude towards work. Conflict over goals The overall goals of C.N.C. are quite clearly laid down in the Standard rules: - the promotion of thrift - the creation of sources of service offered at fair price - the use of members’ contributions for their mutual benefit - the education of members in their economic, social and cultural wellbeing. Within these overall goals, however, there may be specific Objectives which people may differ over, for example: - some people may favour an expansion of C.N.C. operations, for example to promote local business, while others may oppose this. - some people may believe that the C.N.C.’s priority should be attract more low-income members, while others may favour a drive to attract middle-class households. - some Board members may argue in favour of employing a manager and expanding, while others may prefer to ‘keep it voluntary’, even if this means keeping it small. When we look at other examples, such as the ‘plc - C.N.C.’in dairy sector, we can see an immediate potential conflict between maximising returns to outside shareholders or maximising returns to farmers. Conflicts between personalities We have noted already that so called ‘personality clashes’ often have an underlying reason, connected with some aspect of how organisation is functioning. In other words, conflicts which may be to do with policy become personalised and may be put down to the ‘awkward’ personalities of the individuals involved. For example, we might consider a situation where a manager and Chairman of a C.N.C. fall into open disagreement, or perhaps even cease communicating with each other, because of a conflict over limits of the manager’s responsibilities. But such an event is not due - or, at least, not only due - to a personality clash, but rather to a lack of clarity in the manager’s job description. A clearly-written contract of employment would remove the basis for much of this conflict. Another example could be a small worker C.N.C. with a ‘simple collective’ structure: a founding member may feel he/she has been in the C.N.C. from the start and therefore should take on a more managerial role, while other members may feel that he/she is trying to dominate them. Such a disagreement can easily become personalised, whereas it is in fact a serious argument about how the C.N.C. should be organised. Conflict over attitudes These conflicts may be more common in worker C.N.C.s where, for example, founding members may have stronger commitment to the C.N.C. than members joining later, who may essentially regard it as just another job. Of course, the same may happen in your C.N.C.: the original members of the Study Group, who have given so much time voluntarily to get C.N.C. launched, may enter into conflict with Board members who do not have the same enthusiasm as themselves. Again, such conflicts may become personalised, where in reality the problem is one of establishing what is a satisfactory level of commitment. An important point to remember is that conflict, if it exists, should not be suppressed, since such suppression will only make the conflict worse and more personalised. In the context of groups, such as the Board, prolonged conflict can lead to poor motivation and probably poor decisions. Conflict can even be a positive force: it can indicate healthy competition between ideas, which, if they are explored thoroughly, can result in better choices than if only one proposal is pursued in the interest of ‘keeping the peace’. Exercise: Have a look at this fictional case study. Pat is one of the original founding members of A C.N.C.. He and 10 others put in a great amount of voluntary work to launch the C.N.C.. He is now the Chairman, but most of the Board members were not amongst the original founders. The C.N.C. is his life, and he is getting increasingly frustrated by what he sees as the less then enthusiastic attitude of his fellow Board members. Where he wants to widen the C.N.C.’s services, they just to increase turnover. Where he wants the C.N.C. to get involved with other local groups such as the local Enterprise Group, they say that this goes beyond the bounds of the C.N.C.’s role. Pat starts to see all this as a conspiracy against him, and he regards one member in particular as a trouble maker and ringleader of the ‘opposition’ to his plans. At one Board meeting his frustration boils over and he launches a bitter personal attack on his ‘opponent’, accusing him of wanting to take over the running of the C.N.C., and, in doing so, ruining it. List two important issues that lie behind this row. Answer: You might have included the following: - there needs to be a detailed discussion about where this C.N.C. is going, and what its priorities are: some kind of a strategic plan, in fact. Evidently no such discussion has been held. - it seems that there is difference between the ‘old guard’ and new members, in perceptions about commitment to the C.N.C.: in this case the Chairman is having difficulties in ‘letting go’, and even though he is wellintentioned, perhaps he needs to look at the positive aspects of new members being on the Board - although it may also be the case that these new members are too unimaginative, or perhaps could do with some training. These matters need to be discussed. - the Chairman feels that his previous contribution is being undervalued and undermined: perhaps it is true that the new members are not showing him the respect that he is due - without this meaning they should always defer to him because of his seniority. This example leads us to the final part of this section, conflict resolution. Change and Creativity in Organisations When you have completed this section you should be able to: - list some of the factors causing organisational change - describe some of the forces at the organisational level supporting or blocking change - compare ‘competitive and ‘C.N.C.’ strategies of change - asses the role of creativity in the change process. You should read and understand to following headlines: Why change? Change in organisations ‘Macro level’ aspects of change: competition vs. C.N.C. Creativity in organisations In this section we examined different aspects of change in organisations. In the first part we looked at some of the factors influencing change, noting that C.N.C.s are not immune from the effect of many of these factors. The influence in recent times of the ‘enterprise culture’ in dictating the nature of change was discussed. Next, we looked at some of the influences on change within organisations. We discussed Lewin’s model of ‘driving’ and ‘restraining’ forces which tend to minimise the extent of change. We also considered the role of individuals, groups, and organisational culture. We draw a distinction between elements of a change in a conventional organisation compared with a C.N.C. one. We then looked at macro-level aspects of change, and the advantages for democratic-type organisations of following C.N.C. strategies of change rather than competitive one. Finally, we looked at the role of creativity in organisations, noting how creative responses might be more appropriate in certain circumstances than planned, rational processes of change. We suggested that C.N.C. are well placed to encourage creativity to enhance both individual C.N.C. and the Movement as whole. The section is divided into four parts. The first part discusses change in a general way: what are some of the causes? is it always ‘a good thing’? In the second part we discuss micro-level aspects of change in organisations, examining change processes and the role of individuals and groups in promoting or resisting change. Thirdly, we look at some more macro-level aspects of change, i.e. the approaches taken by organisations when faced with a specific external environment. Finally, we speculate on the role of creativity in bringing about change. Why change? When you have completed this section you should be able to: - list some of the factors causing organisational change - describe some of the forces at the organisational level supporting or blocking change - compare ‘competitive and ‘C.N.C.’ strategies of change - asses the role of creativity in the change process. The rate of change, particularly in Western societies, has accelerated in recent decades, and continues to do so. Exercise: Suggest three reasons for this increased rate of change. Answer: Your answer might have included three of the following: - a general increase in the rate of technological advancement - specific developments, particularly the application of computers in all fields of economic activity - the ‘globalisation’ of markets, resulting in an intensification of competition - the growth of new policies and ideologies leading to a shift in ways of organising social and economic activity, e.g. the popularity in some countries of ‘privatisation’ of State enterprises and activities. Exercise: One external factor which is likely to create pressure on C.N.C. to change their present methods of operation is the demand for new services by members/consumers. What other external factors can you think of? Answers: You might have listed the following factors which, along with the demand for new services, will add to the pressure for change: - technological changes, for example possibilities for inter C.N.C. transactions - competition - general deregulation There are therefore several factors driving the rate of change. How do organisations respond? Change in organisations Change in organisations, at the micro-level, can be: - planned (proactive) - reactive. Planned change would seem to be the best desired approach: the setting Objectives, the development of a plan to meet those Objectives, and the implementation of the plan. Reactive change, is, by definition, change which takes place as a response to some external factor such as competition, technological change and so on. The shape of future is increasingly unpredictable: therefore it is not clear that planned change will always give a better results then reactive change. Organisational ‘culture’ and change (Lewin) Exercise: Use the Force Field Analysis approach by drawing a diagram showing three driving forces and three restraining forces which might influence the introduction of ... in C.N.C.. Driving Forces Present Restraining Forces situation Answer: You might have drawn a following diagram: Driving Forces Present Restraining Forces situation - competition - staff unfamiliar with technology - improved and cheaper - fear of loss of jobs by tellers technology - customer demand - fear of loss of control - convenience - inappropriate to ‘culture’ of C.N.C. Organisations which already operate consensus-type systems of decision-making, are probably better -place to undertake such discussions that are more conventional managed organisations characterised by more confrontational styles and hierarchical structures. Exercise: Look at the key steps on the right-hand side of the diagram. Stage Key steps SCHAPING - gain support of key power groups DYNAMICS OF - set example through leadership CHANGE - provide positive symbols and language to promote change - build in stability MAITVATING - bring about dissatisfaction with present state CHANGE - build in participation in change - provide rewards for behaviour supporting change - provide time to disengage from present state MANAGING - develop and communicate clear image of future TRANSITION - use variety of leverage points - develop organisational arrangements during transition - build in feedback mechanisms Pick out three key steps that suggest confrontational approach to managing change might occur in an atmosphere of conflict. Answers: The three most likely steps are: - gain support of key power groups, which suggests that some groups may be mobilised to help overcome opposition from others - bring about dissatisfaction with present state which is connected with creating a new view of the status quo in the organisation as being unsatisfactory: Nadler states that ‘management of change may require the creation of pain and dissatisfaction with the status quo’. This approach could be quite damaging of morale, if its aim is to undermine what people have worked for up to the time when change is decided upon. - provide rewards for behaviour supporting change, which suggests rewarding behaviour supporting change: does that mean creating a division, perhaps in terms of material benefits, between those supporting the change and those opposing it, even if the latter feel that they have strong reasons for their opposition. In conventional companies those who lead the change, i.e. managers, may be given considerable power in order to push change through. If the change is successful, they will thereby gain more power - as well as the likelihood of additional material benefits in the form of share options, increased salaries, and so on. The picture that begins to emerge, therefore, is a model of change which might differ in some respects between conventional organisations and C.N.C. or other value-based organisations. The elements of these differences might include: Conventional organisation C.N.C. organisation - process of change involving confrontation and - process of change based on consensus-seeking conflict - change often narrowly-based, led by managers - change more broadly-based, participatory - ‘divide and rule’ tactics, those supporting change - attempt to understand and reconcile opposition to rewarded change - managers gain material benefit and power from - no particular gain to manager over other groups from leading change change - change usually geared to improving the ‘bottom-line’, - change may have other elements than improving sometimes sacrificing other values ‘bottom-line’, and will attempt to maintain other values Of course, these differences will not apply in every case, but in a general sence there is some validity in the comparison. ‘Macro-level’ aspects of change: competition vs. C.N.C. In this part we look particularly at the possible benefits deriving from following a C.N.C. strategy of change than a competitive one. Wilson, drawing on some other work, suggests the following benefits of C.N.C. strategies: - economies of scale - sharing the advantages of new technology - reducing risks and costs of innovation and development - sharing the talents and expertise of human resources within co-operating organisations. based on D.C.Wilson, A strategy of Change, Routledge, London, 1992 Exercise: What might be implied by a C.N.C. strategy for change in C.N.C. movement? Which of following words might describe the implementation of such strategy? (Tick at least two.) Centralisation Y/N Bureaucracy Y/N Networking Y/N Innovation Y/N Control Y/N Economies of scale Y/N Answer: We would suggest following: - networking - innovation - economies of scale. We can therefore draw some distinctions at the macro-level, just as we did at the micro-(internal) level, between strategies of change pursued by conventional and C.N.C. organisations. Conventional organisation C.N.C. organisation - competitive strategy - C.N.C. strategy - ‘niche strategies’ - networking - centralisation/hierarchy (perhaps after initial - autonomy / flexibility decentralisation) - ‘downsizing’ - innovation - increased market share through predatory take-overs - economies of scale - everything to improve ‘bottom line’ - aim to improve services to members As with all such comparisons, this chart simplifies some of distinctions, but deliberately so, in order to show that C.N.C. organisations do not need to follow the same processes and methods of organisational change as conventional organisations. There are alternatives. Creativity in organisations We will look at two types of approaches to creativity: - a conventional management approach to stimulating creativity and innovation - examples of unconventional creativity in organisations. Conventional management approach to creativity Creativity can be harnessed to: - develop new products - find imaginative solutions to problems - engage in ‘unconstrained thinking’ which may result in novel ideas or solutions. Pauric McGowan suggests that the appropriate management style to promote creativity would be the following: - sensitive to creative characters in the organisation - frequent communicator, both laterally and vertically - participative and collaborative rather than authoritarian - receptive to new ideas and seeking feedback on these from associates - pro-active in nature - conscious of need for balance between freedom to innovate in short term and need for control to achieve longterm goals - control and organisation through networks of project groups and matrix structure. based on P. McGowan, Creativity and Innovation, in D. Steward (ed), 1989 We called this a conventional approach in the sense that it lays out some systematic principles promoting creativity - but we can see that some of these principles can be applicable in the C.N.C. context too. Running Meetings C.N.C. Exercise: You’ve probably all been to bad meetings. List four characteristics of them. Answer: There are many characteristics:- meeting starts late - no agenda - poor direction from the Chair - domination by a few wordy individuals - no decision made, etc. Objectives When you have completed this section you should be able to: - analyse the reasons for meeting not working effectively - distinguish between different types of meetings in terms of the purpose they serve - list a number of measures that can be taken to make meeting effective - give examples of indicators which can be used to measure the effectiveness of your meetings Problems with meetings Is the meeting appropriate? Checklist - do we need a meeting? - Do the rules require a meeting? Clearly relevant to C.N.C.: the rules lay down requirements for meetings. - Is two-way communication necessary? For example, to dispel rumours and provide briefing in connection with a change proposed. - Is team-building necessary? Meetings to plan a campaign, etc. can develop a greater sense of joint commitment. - Would collective advice/guidance be useful for decision-making? Collective advice can often result in a better decision. - Is there a problem/crisis that is better solved by a group? This is in the case of a sudden crises, when stability in the organisation can directing events collectively. Based on: John Gregory, Making Meetings Work, in D Steward (ed), 1989 be restored by a group ‘Structural ‘ reasons for meetings not being effective: - people problems: -- the authoritarian chairman or -- weak chairman -- the person who always want to have the last word -- the rambler who talks a lot without reaching the point -- inter-personal rivalries - planning problems -- not enough notice given -- some key people not motivated -- no agenda -- poor presentation of briefing information, etc. - progress (or lack of it) after a meeting -- no circulation of minutes -- no clear direction on actions to be taken and whom -- no follow up meetings, etc. ‘Group dynamics’ which render meetings ineffective Specifically in meetings, some of the following problems of a ‘group dynamics’ nature can occur: - people lose interest and start distracting others - people come in late or leave early, others are coming and going - a minority or a single person may dominate the meeting - some people or single person may rigidly keep raising the same issue, whether relevant to the discussion or not - some people may not contribute at all, for various reasons, and later may disagree with decisions made at the meeting - there can be tension in the meeting due to domination of unresolved conflicts, poor facilitation etc. - strong opinions may preclude constructive discussion: a sign of ‘group-think’ - people discuss many issues at the same time. based on V cover et al, Resources Manual for a Living Revolution, New society Publishers, Philadelphia, 1978 Exercise: Read through the following fictional sketches, and write down what you think they illustrate, in terms of some of the problems associated with meetings. A. ‘The Chief Executive is meeting with Heads of all the main sections in the firm, discussing his plans to streamline the firm’s structure. ‘Right, we have five sections, production, finance, marketing, quality control, overseas operations. These will come down to three, by merging production with quality control, and marketing with overseas operations. Any problems? Yes Sean? (Sean is the head of marketing division.) O.K., well, you’re near to retirement anyway, aren’t you?’ B. !Now, in relation to the question of finding new markets for our food products, I was talking to one of our biggest customers yesterday, and he was telling me of the tight financial situation they’ve got into, what with the recession over there. Did you know that almost 2,000 firms went bust there last year? It’s due to government policy, our customer was saying, and I must say I have to agree with him, that lot are the hopeless shower ...’ C. ‘Right, we haven’t got an agenda for this meeting, but I suggest we just kick off anyway. Dave, would you like to raise any points first?’ D. ‘O.K., let’s start the meeting. There’s only one item on the agenda, and that’s the resource plan to save the company. I don’t care what it takes, but this plan is going to be agreed on by the time this meeting finishes. And at the end of the meeting, I am going to go round each of you one by one to get your agreement.’ Now, how would you describe the group dynamics in each of these situations? Look back to the list of problems associated with meetings for some ideas. A. B. C. D. Answers: Your answer is probably along these lines: A. Autocratic and rather cynical Chief Executive, doesn’t want opposition to his plan, nor to listen to any argument against it. B. Someone who started rambling off the point: others in the meeting would soon stop paying attention to him. C. A poorly planned meeting with no agenda. Instead of trying to agree an agenda at the start, the Chair just opens discussion in an arbitrary way: likely to be an unproductive meeting! D. Another authoritarian Chairman: what’s the point of the meeting when, so far as he is concerned, the only business is to rubber-stamp the rescue plan? He adds a slightly intimidating atmosphere by announcing his intention to go round the table individually. Types of meetings - Annual General and Special general Meetings - Staff Meetings - Board Meetings - Special Strategy Meetings Exercise: You are probably very familiar with bylaws of C.N.C. Try to answer these questions. 1. What three bodies/individuals are elected by the Annual Members Meeting? 2. What three actions require Special General Meeting? Answers: You probably recalled (or looked up) the answers: General members elect: - new members to fill vacancies on the Board of Directors - the three members of the Supervisory Committee - the auditor A Special General Meeting is needed: - to expel a member from the C.N.C. - to vote on the removal of a Director from the Board or removal of an officer by the Supervisory Committee - to discuss the failure of member(s) of the Supervisory Committee to perform their duties. Staff (business) meetings covering such issues as: - rostering - feedback from members/customers - leave arrangements - any other issues of concern of staff. Board meetings, few points can be made about them: - held regularly, at least (monthly) - need a clear agenda - benefit from preparation, for example period circulation of manager’s/Treasurer’s reports - benefit from facilitative style of chairing. Making meetings more effective Exercise: Compare member-centred and chair-centred meeting processes Answers: The member-centred meeting involves everybody, there is an open exchange of views: it is not possible to tell from the diagram who is the Chair is, but one of the participants will be facilitating the discussion. In the chair-centred meeting, all discussion is channelled through the Chair, which gives that person a significant degree of influence over how the meeting may proceed. In many such meetings, one participant will preface his/her remarks to another by the phrase, ‘Through the Chair ...’. Exercise: Write down two possible advantages and two possible disadvantages of each process. Remember we are talking about C.N.C. meetings here. Member-centred Advantages Chair-centred Advantages Disadvantages Answer: You might have included the following: Member-centred Advantages - Everyone participates. - Full discussion of issues. - Less scope for domination by the Chair. - Greater sense of C.N.C. Disadvantages - Discussion may be disorderly. - May take too long/no decision reached. - May be domination of discussion by others (not Chair). Disadvantages Chair-centred Advantages - Discussion orderly and controlled. - Meetings kept within time. - Chair may be respected person, helps to overcome interpersonal conflicts, etc. Disadvantages - May be domination by the Chair. - Flows of discussion may be narrow. - Lack of sense of C.N.C. Planning the meeting A number of factors are involved in preparing for a meeting, including: - identifying the purpose of the meeting, e.g. routine Board meeting or to discuss single issue? - deciding who should be there - determined by purpose of the meeting - making a clear agenda and circulating in advance, perhaps including provisional time allocation to each issue - preparation and circulation of relevant papers, figures, etc., in advance. Physical environment: The physical arrangements are straightforward: - enough space, well-ventilated and well-lit - seating arranged so, that everyone can see each other - quiet, with no interruptions - necessary supports available, e.g. flip over, marker pens, overhead projector, etc. Exercise: Write down two reasons why minute-talking is important. Answer: This is rather straightforward: - to keep a record of discussion held and decision taken - to circulate this record to all participants, to: a) remind them of actions they are responsible for b) provide them with information relevant for conducting their work. What does a facilitator do? Here are few examples: - prepares the meeting - drawing up agenda (perhaps in discussion with others) - keeps the group united: -- being impartial -- making sure everyone has a say -- looking for agreement and consensus -- keeping the meeting good-humoured - keeps the group focused: -- making sure everyone keeps the agenda -- making sure issues are laid out clearly -- reviewing points in a debate to keep everyone clear -- making sure decisions are made carefully and with full agreement - or deferred -- re-stating decisions - making sure they are fully understood and agreed - after meeting: -- approving minutes prior to circulation based on ICOM, Organisational Issues in Democratically Managed Businesses, ICOM, Leeds, 1992 Contribution of participants Exercise: Try to suggest four ways in which participants at a meeting can contribute to a positive atmosphere conductive to good decision-making Answers: Particulars can contribute to a positive atmosphere by: - participating fully - listening carefully to other’s opinions - keeping to agenda, not wandering off the point - making contributions in an orderly way, by indicating to the facilitator - helping to promote consensus - not distracting others by holding separate conversations, rustling paper, walking in and out, etc. - not pursuing other agendas for self-interested reasons, and so on. For meeting to be effective, you and your colleagues have to act responsibly and openly to ensure: - good decisions - improved C.N.C. Results Plans don’t do anything, people do. Having made your decision, therefore, you must also decide: - who is responsible for implementing specific elements of the decision - what is the time-scale for implementation - what resources are needed to implement the decision and how are these resources to be obtained - how are the effects of the decision to be monitored and reviewed. Measuring the effectiveness of meetings We will suggest some indicators to measure the meeting process. Look at the following table: Indicators of the effectiveness of meetings 1 Goals Unclear, conflicting, not fully agreed Clearly understood and shared by all 2. Participation Dominated by minority, some people not involved Open and lively discussion, everyone listened to 3. Leadership Poor or no direction, or domination by one leader good sense of direction 4. Decisions Good decisions made, everyone committed to them Poor or no decisions, not everyone agreeing 5. Organisation Well organised, flexible Chaotic, manipulative, etc. 6. Relationship between participants Trust and understanding Feelings of mistrust or antagonism 7. Attitude about meeting Interesting, helpful, enjoyable Boring, waste of time, unpleasant 8. You should read and understand to following headlines of meeting No informative Informative 9. Productivity Achieved little, meeting will not change anything Achieved a lot, expect results The potential of networking Exercise: What is your view of the future? Should a network be set up, or should C.N.C. autonomy be retained? State two advantages of both options. Network: 1. 2. Autonomy: 1. 2. answer: You might thought, for example, of some of the following: Network: 1. Members can make transactions flexibly. 2. Many possibilities for future development and for pooling resources. 3. Reduce costs. Autonomy: 1. Members value autonomy. 2. No particular demand for inter-C.N.C. transactions. 3. Members maintain control of own funds Q: There is concern in some quarters that the introduction of computer technology can result in people in the organisation being reduced to the status of mere operators. In a people-centred organisation such a development would be worrying. Discuss the main ways in which computers are used in C.N.C., and address the issue of whether they have reduced the role of personnel in C.N.C. to any extent. : Personnel Management and Industrial relations In C.N.C. Exercise: Suggest four indicators of a poor personnel situation in an organisation, and four indicators of a good personnel situation. We have given you an example to get you started. Poor Good 1. High labour turnover 1. Low labour turnover 2. 2. 3. 3. 4. 4. 5. 5. You will probably have mentioned some of the following: ...................................... Protecting profits or people? Exercise: Do you think that the following personnel activities are as important for volunteers as for paid staff in C.N.C.? Training and development Y/N Performance appraisal Y/N Workforce planning Y/N Motivation Y/N Benefits Y/N Recruitment and selection Y/N Answer: We would suggest that most of these activities apply equally to volunteers as to paid staff. The exception might be: - compensation/re-numeration - recruitment and - Workforce planning Step 1: analyse current workforce resources Step 2: forecast workforce demand Exercise: There are probably very few C.N.C. where staff have been laid off, but C.N.C. do have to deal with seasonal fluctuations in the demand for their services. How do they tend to deal with such fluctuations in terms of personnel requirements? Answer: Probably the most common way is by making variable use of volunteer staff. From an organisational viewpoint, the existence of volunteers makes C.N.C. quite flexible organisation. Many conventional companies would in fact like to go in the same direction to reduce their overhead costs, but are not always able to do so largely because of Trade Union resistance. Exercise: What the evolution of C.N.C. staffing patterns tells you? Answer: Staffing patterns (diagram) indicate: - initially, the growth of volunteers work up to a peak - when the demand for services exceeds the abilities of volunteers to deliver services, paid staff are recruited, who give a constant level of service - the recruitment of paid staff results in some decline in the use of volunteer staff, but at peak periods the number of volunteer staff (or numbers of hours worked by the same staff) increase to meet the peak demand. Step 3: analysis of the sources of labour supply Exercise: State two possible advantages and two possible disadvantages of appointing volunteer staff to paid positions: Advantages Disadvantages 1. 1. 2. 2. Answers: You might have suggested some of the following: Advantages Disadvantages 1. experience outsiders may bring fresh skills 2. familiarity with and to members 3. from local area charges of favouritism, could be bad for image volunteers may be good Board members, staff appointments will not allow this 4. commitment Step 4: develop action plans Step 5: monitor and review Personnel Management Activities Case Exercise: Recruitment of new personnel is just one option open to management if demands on staff increase. Can you suggest four alternatives? 1. 2. 3. 4. Answers: You might have thought of some of the following: - sub-contracting the job to an outside firm - automation - overtime - re-deployment of existing personnel - productivity bargaining to raise productivity - increased flexibility of workforce. Recruitment: Exercise: List three criteria which should be included in a job specification for a teller. 1. 2. 3. Answer: You might have suggested some of the following as examples: - preferably previous experience working in financial organisation - good ability with figures and basic computer knowledge - well-organised and disciplined - outgoing personality Exercise: List at least one advantage and one disadvantage of internal recruitment. Answer: You will probably have mentioned some of the following: Advantages: - low cost (but there may be training costs) - good for morale and motivation - management know the person’s abilities Disadvantages: - frustration amongst employees not selected - potentially lost opportunities to recruit high quality staff from outside. Exercise: Match the following positions to be filled with the most appropriate source for suitable applicants. Position Source C.N.C. manager Newspaper Tellers/clerical staff College careers service Graduate trainee Business magazines Unskilled school leaver FAS Answer: Well you might have chosen different sources, but we suggest the following: Position Source C.N.C. manager Business magazine or local newspaper Tellers/clerical staff Local newspaper, or perhaps FAS, or College careers service Graduate trainee College careers service Unskilled school leaver FAS Training and development: Exercise: It is sometimes felt that C.N.C. do not devote enough time and resources to staff training. List three areas where training might be particularly required in C.N.C.. 1. 2. 3. Answers: Well, this vary, depending on the C.N.C.. You might have selected something out of the following list: - financial accounting - computing skills - financial planning - marketing skills - administration/record-keeping and so on. Industrial work relations: Trade Unions, industrial conflict, disciplinary procedures, health, safety and welfare. Exercise: Do you recall the positive roles of Trade Unions which we listed in Unit 2? State three of them. 1. 2. 3. Answers: We suggested: - Trade Unions wage rates and benefits set standards to which C.N.C. can aspire (the basis for the wage-level decisions we discussed earlier). - Trade Unions have long experience in a whole range of work-related issues such as health and safety. - Trade Unions are experienced in disciplinary and grievance procedures. - Trade Unions can represent individual workers as employees in the C.N.C.. Exercise: Do you recall two other features of the view that conflict is damaging to the organisation (traditional) and that conflict can have positive results (interactionist)? Traditional Interactionist 1. 1. 2. 2. Answer: We suggested the following: Traditional Interactionist conflict available conflict inevitable conflic caused by trouble makers conflict mostly due to structural factors conflict should be dealt with by exertion of authority conflict is the necessary part of organisation’s change individuals are scapegoated individuals not blamed Grievance procedures can either be Individual or group or work-related or personal. Disciplinary procedures Exercise: What type of issues do you think the disciplinary process should cover? Answers: Rules cover such matters as: - personal conduct - time-keeping - absence - health and safety - performance and behaviour. Exercise: Do you recall some of the features of the proposed disciplinary procedure? Suggest three silent features. 1. 2. 3. Answers: We suggested that: - the personnel committee should ensure that an employee is advised of particular complaint before any meeting is held - the employee may be accompanied by someone such as a Trade Union official. Q: The six employees of ABC C.N.C. have recently joined a Trade Union, and have approached the Board through the manager to bargain collectively for improved pay and working conditions. As a board member, you are in favour of this approach, but other Board members are sceptical. Put forward reasons why the sceptical Board members should consider this approach more positively. Personnel Management and Industrial Relations Issues in C.N.C. When you have completed this section you should be able to: - assess the importance of personnel management to C.N.C. - describe the workforce planning process and explain the potential benefits it can bring to C.N.C. performance - list and explain the many activities of personnel management as they relate to C.N.C. - describe the many issues in the field of work relations of relevance to C.N.C.. You should read and understand to following headlines: Personnel management and C.N.C. Workforce planning Personnel management activities Industrial / work relations In this section we looked at the role of personnel management in C.N.C., and its importance in C.N.C. effectiveness. First, we looked at the personnel management function, and at changing attitudes to personnel issues in conventional and C.N.C. organisations. We then looked at ‘workforce’ planning and the workforce planning process, examining in particular the implications of changing demand for staff in a C.N.C., and how this changing demand might be met. We moved on to discuss personnel activities in some detail, focusing on: - recruitment and selection - training and development - performance appraisal - compensation and benefits. Finally, we discussed the important issue of ensuring good work relations, ad of developing effective procedures for dealing with grievances and disciplinary problems. We also discussed the actual and potential role of Trade Unions, and health, safety and welfare issues. Groups in C,N.C. When you have completed this section you should be able to: - distinguish between ‘constructive’ and ‘destructive’ groups - describe characteristics of an effective team - state the benefits to C.N.C.s and similar organisations of teamwork Groups: formal (permanent or temporary)/informal (functional, emotional) Exercise: Commonly-observed informal roles within groups are: - Task-oriented individuals (Those most interested in getting the job done) - People-oriented individuals (Those concerned with ‘group maintenance’, i.e. inter-personal relationships within the group) - Deviants (Those who depart from group values) - Old timers (Old hands in the group who know the ropes). Can you list or describe three more informal roles which you have observed being carried out in group meetings within your C.N.C. or in some other context? Answers: This is a bit tricky. You might have thought of, for example: - ‘Blockers’ - those who disagree with everything - ‘Social climbers’ - those who use the group to further their own ambitions - ‘Synthesisers’ - those who are good at bringing together different views - ‘Yes-men’ - those who will agree with whichever seems to be the majority view, and so on. We can underline the possible impact of different types of informal role-playing, by distinguishing between constructive and destructive groups. Look at the following chart (J.Martin), 1989). A. The Constructive Group: - atmosphere in the group relaxed and comfortable - people involved and interested - a lot of discussion, most people participate - Objectives are well understood and agreed upon - members of the group listen to each other - disagreement takes place but this is accepted - conflicts are examined and attempts made to resolve them - most decisions are reached by consensus, but opposition is not concealed - criticism is frank but constructive and not personal - people are free in expressing feelings and ideas about the group - when action decisions are made, clear assignments are given and accepted - leadership shifts depending on circumstances - different members become leaders when their qualities are most needed - the group regularly looks at its own operations though open discussion. B. The Destructive Group - an atmosphere of indifference and boredom - a few people tend to dominate the discussion - Objectives are not obviously understood or accepted - people do not listen properly to each other and say little for fear of being criticised - disagreements are not dealt with effectively - f(r)actions may emerge - actions are often taken before issues are fully resolved - criticism is personal and destructive - personal feelings are concealed - when decisions are made, it is not clear who will do what - leadership is jealously guarded by one person (e.g. the Chairperson) whether capable or not - the group does not go in for self-criticism - except outside meetings! This chapter shows how affiliating persons can become independent and creative team members or influence others on meetings. The next chapter use gained group and team behaviour skills, and extend them into managerial skills. And then it is up to you whether you prefer to work in as independent among equals or as manager of dependent individuals in difficult situations. 9. Managing Individuals: perception, attitudes, motivation, timemanagement Principal question: What you will do with all management knowledge mentioned up till now? Can you over others in the given situation? You should read and understand to following headlines: Individual differences, perceptions and attitudes, motivation, leadership, human resource management, Quality tools, Self-evaluation, Time-management Definitions: Individual differences: 1. When you have completed this chapter you should be able to: 2. List and describe the different physical and cognitive abilities 3. Describe the major personality factors and the styles of learning and thinking people may have and their possible impact on performance as well as network relationships 4. Discuss significant outcomes affected by individual differences> creativity, job performance, and counterproductive behaviour Individual difference = Characteristics that vary from one person to another Psychological contract = The exchange that underlines a person’s working relationship with an employer Violations of the psychological contract = Employers violate agreements in some way (training/development, compensations, promotion, nature of job, job security, feedback, management of change, responsibility, people, other) and employees negatively correlate by satisfaction, trust, intention to remain with an organisation, and positively correlate by turnover Person-job-fit = The degree to which employer and employee each contribute what the other party is seeking Ability = A person’s competence or skill in performing some activity well Aptitude = The natural capacity to learn or acquire and ability Physical abilities = Strength, flexibility, co-ordination, and endurance Major physical abilities = Static strength, dynamic, explosive, and trunk (dynamic strength limited to leg muscles) one, the dynamic flexibility, gross body co-ordination, and equilibrium, and stamina (capacity to sustain maximum effect requiring cardiovascular exertion) Major psychomotor abilities = Control precision, multilimb co-ordination (both hands packing), response orientation, reaction time, speed of arm movement, rate control, manual dexterity (rapidly placing differently shaped blocks into correct holes of a board), finger dexterity, arm-hand steadiness Cognitive abilities = The capabilities to think intelligently and to analyse information Personality = The relatively stable set of psychological characteristics and behaviour patterns that distinguish one person from another Extroversion/introversion = The degree to which a person is sociable, gregarious, talkative, and assertive Emotional stability = The extent to which a person’s emotions are even Agreeableness = The degree to which a person possesses such traits as courtesy, flexibility, trust, good nature, co-operativeness, forgiveness, and tolerance Conscientiousness = A person’s dependability and perseverance Openness to experience = A person’s interest in and willingness to consider new ideas and experiences Learning = The process of acquiring knowledge or skill Cognitive style = The different ways people perceive and process information Creativity = A person’s ability to generate new ideas or fresh ways of viewing existing ideas Divergent thinking = Seeing differences between situations Convergent thinking = Seeing similarities between situations Job performance = Behaviours that are relevant to the organisation’s goals and can be measured in terms of each individual’s proficiency, or level of contribution Counterproductive behaviour = Activity that damages the employer, such as drug use and white-collar crime Perceptions and attitudes: When you have completed this section, you should be able to: 1. Discuss the steps in the perception process: attention, interpretation, retrieval, and judgement 2. Discuss the ways in which perception influences behaviour in the workplace 3. Define values and explain how they are important to the workplace 4. Explain how attitudes are formed and changed 5. Identify important work – related attitudes, and describe behaviours influenced by those attitudes and ways organisations measure those attitudes Perception = The process of noticing and making sense of information Attention = A stage of perception in which people notice some information and filter out the rest Expectations = What people think they will perceive (factors: needs, interests, external, intensity, contrast, frequency, novelty) Organisation = Stage of perception in which the perceiver uses schema to sort information Schemas = Cognitive structures in which related items of information are grouped together Script = Schema describing a sequence of actions Prototype = Schemas that summarise characteristics about categories of people or objects Halo error = A bias in perception that occurs when ratings of specific types of behaviour reflect the perceiver’s overall rating of the person Stereotype = A rigid, widely held prototype about the general characteristics of a group of people Contrast effect = Perceiving something as larger or smaller than it is because of the size of a reference point Anchoring and adjustment effect = Perceptual bias that involves making an insufficient adjustment from a given value (an anchor) Interpretation = Stage of perception that consists of looking for explanations for the stimuli observed Projection = Assigning (often unconsciously) your own thoughts and feelings to the people you observe Attribution = Using observations and inferences to explain the behaviour of others Self-serving biases = The tendency to interpret information in a way that puts the perceiver in the best light Retrieval = Stage of the perception process that consists of recalling information about past events Judgement = The last stage of the perception process in which the perceiver uses retrieved information to arrive at and overall conclusion Assimilation effect = The tendency to bias current judgements in the direction of past judgements Priming = Having raters recall a set of events shortly before asking them to make a judgement that may be related to those events Confirmation bias = The tendency to heavily weight information that reaffirms past judgements while discounting information that would contradict them Values = Beliefs that are stable, identify what a person considers important, and influence the person’s behaviour Instrumental values = Beliefs about what kinds of behaviour are appropriate for reaching goals Terminal values = Beliefs about what ends are worth striving for Attitude = A combination of beliefs and feelings that predispose a person to act in a certain way Cognitive dissonance = A conflict involving a person’s attitudes and behaviours Job satisfaction = A positive attitude toward work Organisational commitment = An attitude that consists of strongly identifying with one’s organisation and feeling attached to it Job involvement = Attitude of caring about one’s job so much that the employee routinely exceeds the normal expectations for job performance Ethnocentrism = Attitude that a person’s own culture is superior to others Withdrawal behaviour = Avoidance of the work situation as a result of job dissatisfaction Physical withdrawal = Removing oneself from the workplace through such means as absenteeism and turnover Psychological withdrawal = Detachment from the work setting Organisational citizenship = Behaviour that contributes to the well-being of the organisation Motivation: Employee Empowerment and Participation When you have completed this section you should be able to: 1. Discuss the link between motivation and behaviour 2. Describe expectancy model of the motivation process 3. Explain how people develop beliefs that their efforts will result in successful performance 4. Discuss how people come to associate their behaviours with particular outcomes 5. Describe models of the outcomes people find motivating 6. Discuss equity theory and its role in explaining which behaviours employees are willing to try 7. Describe how goals and goal setting influence motivation 8. Discuss the manager’s role in influencing motivation 9. Compare and contrast different theories on motivating employees in the workplace 10. Describe methods of job design which might help increase C.N.C. efficiency 11. Outline different approaches to creating a culture for employee empowerment Motivation = combination of forces that lead people to behave as they do Expectancy theory = Theory that motivation as a process in which people chose behaviours based on expectancy, instrumentality, and valence Expectancies = Beliefs about the link between trying to perform a behaviour and actually doing it well Instrumentality = A belief that performing a given behaviour is associated with a particular outcome Valence = The attractiveness of a particular outcome, or the satisfaction a person expects to receive from that outcome Social-learning theory = Theory that states most people learn how to behave by observing models Self-efficacy = a person’s judgements about whether he or she can successfully carry out courses of actions Learned helplessness = A complete lack of motivation to improve or remove oneself from undesirable situation Hedonism = The concept that people generally behave in ways intended to maximise pleasure and minimise pain Reinforcement theory = Psychological theory that people are motivated to perform or avoid particular behaviours because of past outcomes associated with those behaviours Self-reinforcement = The reinforcement or punishment of one’s own behaviours Operant conditioning = Reinforcement approach that uses the processes of positive reinforcement, negative reinforcement, and punishment Positive reinforcement = A pleasurable stimulus or event following a desired behaviour resulting in an increase in the frequency of that behaviour Extinction = Process of withdrawing reinforcers to counteract a previous reinforcement Negative reinforcement = the removal of an unpleasant stimulus following a desired behaviour resulting in an increase in the frequency of that behaviour Punishment = Presenting an unpleasant stimulus after a particular behaviour, leading to a decrease in the behaviour Goal-setting theory = Theory of motivation that links employee behaviour to goal characteristics and goal commitment Goal commitment = People’s willingness to work toward achieving goals and their reluctance to give up Need theories = Theories of motivation that seek to explain what motivates people in terms of deficiencies that individuals experience at a point in time ERG theory = Alderfer’s theory that people are motivated by a hierarchy of existence, relatedness, and growth needs Theory of manifest needs = Theory that people are motivated by a variety of needs, which may arise in combination Need for achievement = Concern for attaining and maintaining self-set standards of excellence Need for affiliation = Concern for building and maintaining relationships with people, for being accepted by others Need for power = Concern for attaining responsibility, influence, and reputation Equity theory = Motivation is based on a person’s evaluation of the relationship between his or her efforts known as inputs and the outcomes in comparison to the inputs and outcomes of another employee Empowerment = Creating conditions in which employees perceive themselves as competent and in control of performing meaningful tasks Reward systém = Mechanism for defining desired behaviours, evaluating performance, and rewarding good performance Motivation and job satisfaction Exercise: Which of the four orientations to work, do you think describes working in C.N.C.? (You may choose more than one.) Answers: What did you think? If you’re working as a volunteer, it couldn’t be and instrumental (earnings) orientation! But it could be a combination of the other three orientations, social, moral, and control. For paid workers, an instrumental orientation will probably be one, but rarely the only, motivating factor. Exercises: Listed below are four motivations and individual may have to work in a C.N.C.. Can you identify which orientation applies to each statement? a) ‘My best friend, Nuala, works on Friday night with me and we love a good chat among ourselves with a cup of tea, and with the customers at the counter’ b) ‘I can do the work assigned to me by the board of directors in my own time, and without interference.’ c) ‘Paddy and myself are both in the Society for St. Vicent de Paul also, and feel that the two organisations are complementary in providing a valuable service to the less affluent in the community.’ d) ‘I earn a good wage at my C.N.C..’ Answers: You should have identified the statements as follows: a) Social, b) control, c) moral, d) instrumental. Theories of motivation Exercise: Using Maslow theory, what categories of need would you put the following needs of the C.N.C. volunteer? a) To be responsible, through my C.N.C., for providing a new enterprise centre in the community. b) To ensure the viability and continued existence of the C.N.C.. c) To be chairman of the board of directors. d) To meet friends at the meetings. e) To provide valued financial services for me, my family and my community. Answers: You should have identified these needs as follows: a) Self-actualisation, b) Safety and shelter, c) Self-esteem, d) Social, e) Physiological. Existence-related-growth (ERG) theory - Clayton Alderter: This theory is similar to Maslow’s in the sense of recognising a hierarchy of needs, but there are three essential differences: - people’s needs are grouped into three categories - existence, relatedness, growth - more than one level of need can provide motivation at the same time - if needs at a higher level remain unfulfilled, the individual will become frustrated and regress to a lower of needs. Exercise: Refering back to the previous exercise which we completed in relation to Maslow’s Theory of Motivation, could you now place these five statements into one of the three need categories of Alderter’s ERG Theory, i.e. existence, relatedness growth. a) b) c) d) e) Answers: You should have identified these as follows: a) Growth b) Existence c) Growth d) Relatedness e) Existence Acquired needs theory - David McLelland - identified three basic needs (in no particular order) that can motivate an individual: - need for achievement - need for affiliation - need for power Exercise: McLelland’s three needs bear some correspondence to the orientations to work we discussed earlier. Which need best corresponds to which work orientation? Need Work orientation for achievement Instrumental for affiliation Social for power Moral We would suggest the following: - Need for achievement - mostly linked to instrumental orientation, to the extent that achievement is measured in material terms:, could also relate to control orientation. - Need for affiliation - mostly linked to social, and perhaps to moral, orientation. - Need for power - mostly linked to control orientation. Theory X vs Y - Douglas Mc Gregor Exercise: McGregor’s theory focused on managerial assumptions about their employees’ behaviour and motivation. Summarise the main assumptions of Theory X and Theory Y. Theory X: TheoryY: Answers: Theory X assumes: - people dislike work and will try to avoid it - management therefore have to control, direct, threaten and coerce employees to get them to work towards organisational goals - people prefer to be directed, to avoid responsibility, to want security:, they have little ambition. Theory Y assumes: - people do not naturally dislike work:, it is part of their lives - people are self-motivated to reach Objectives to which they are committed, and they get personal satisfaction when they achieve their goals - people will both seek and accept responsibility under favourable conditions - people have the capacity to be innovative in solving organisational problems - people are intelligent, but under most organisational conditions their potentials are under-utilised. Two factor theory - Frederic Hertzberg: motivation, ‘hygiene’ factors. Equity theory - Stacey Adams What do you think is the likely outcome if an individual feels that he is under-rewarded in comparison to other similar employees? Answer: Basically, an individual who feels under-rewarded relative to someone else would either redouble his efforts to be rewarded, or could take opposite approach and slacken off, feeling that his effort is not rewarded. But there are there lessons for managers: - prevent such perceived inequities from occurring by implementing fair and transparent payment system, - find clear ways of rewarding effort, e.g. through verbal commendations, if not always materially. Expectancy theory - Victor Vroom: (i) effort will lead to achievement, and (ii) achievement will lead to reward. Exercise: The theories we have discussed in this sub-section suggest that motivation is quite an individual issue. In other words, what motivates you may not necessarily motivate your colleague. Nonetheless, can you draw any distinctions between factors motivating volunteers and those motivating paid staff working in a C.N.C.? Answer: You will probably have suggested that there will be some differences. As we noted earlier, instrumental benefits cannot be the aim of volunteers. We discussed in Unit 2 what volunteers do want out of work, i.e. factors such as: - social contact with others - personal development - skills acquisition and learning - challenge and achievement - making a contribution to society Job design (rotation, enlargement, enrichment, characteristic approach, autonomous work groups) Job enlargement: Exercise: Can you think of at least one disadvantage with this approach? Answer: You may have mentioned one of the following: - training costs can be high - more tasks may imply more pay - even after job enlargement, tasks may be essentially routine and boring Job enrichment: more tasks and more control Job characteristic approach: - skill variety - task identity - task significance - autonomy - feedback Exercise: The Board of directors have noticed that the quality of work performed by counter staff has declined recently, and are of the opinion that this is due to the repetitive nature of the job. Using the job redesign methods we have just discussed, can you think of ways of improving staff morale and performance. Job rotation Job enlargement Job enrichment Job characteristic approach Autonomous work groups Answer: Your answer may have included points similar to the following: - Job rotation: the employee or volunteer could work at the purchasing counter on Monday, the sale counter on Tuesday, do back room clerical work on Wednesday etc. - Job enlargement: employees and volunteers are taught new tasks such as bookkeeping and computer applications to increase their efficiency at the counter. - Job enrichment: give employee more authority to grant loans to members, or give advise to them, making them have control over deciding what package best suits the member. - Job characteristic approach: volunteers and employees are invited to attend a meeting once a month detailing how the C.N.C. is performing and how each of them are contributing to its effectiveness. They are asked if they have any opinions as to how performance and service to members can be improved, and are provided with the means to enrich their jobs as mentioned above. - Autonomous work groups: employees and volunteers are divided into task groups who have responsibility for the operation of a particular activity of the C.N.C., such as responsibility for Home union service and are given free rein to market and operate this service. Exercise: Answer the following True or False questions: 1. The traditional job design approach was based on scientific management T/F 2. Scientific management put emphasis on task identity - awareness of the whole task. T/F 3. Job enrichment involves workers doing more work for less pay. T/F 4. Job rotation is only an appropriate strategy for C.N.C. organisations. T/F Answers: What did you come up with? The answers are: 1. True 2. False: Scientific management did not emphasise the whole task. 3. False: Job enrichment involves more work, or more varied work, but nothing is said about pay levels. 4. False: Job rotation, could be equally appropriate for conventional organisations, but within limits. Creating a culture for employee empowerment and participation Exercise: We have made the assertion that this our C.N.C. may have a better record on employee empowerment than some other parts of C.N.C.s. Why is this so (or do you disagree(? Give the reasons for your answer. Answer: We would suggest that the autonomous nature and small size of individual C.N.C. of this kind are the critical factors here:, these characteristics promote team work, which may be lacking in larger, more conventionally structured organisations. Quality of working life movement (QWM) - aims to: - eliminate problems associated with traditional work systems - make work more ‘meaningful’ for employees, with attendant benefits. The movement recognises that employees generally want: - to make a more positive input into organisational decision making - increased involvement in job design. Exercise: Can you think of any evidence of such approach being used in the C.N.C. of your kind? Answer: You may have identified the Committee system within C.N.C., which allows particular committees the independence to carry out the activities for which they are responsible. For example, the Promotion and Development Committee with its USD ... budget is responsible for promoting the C.N.C. in the community and, although under direction of the board, can more effectively perform its task if given the freedom to do so. Quality circles: Exercise: Try to recall the main aims of quality circles Answer: Hopefully, you will have recalled most of the following: - quality improvement - productivity enhancement - employee involvement - improved communication and teamwork. Q: Suppose your C.N.C. has been run by volunteers for the last few years. Now, the Board of Directors decides that a manager and two half-time staff should be hired. They advertise the posts, and although some of the volunteers apply for the half-time posts, these are instead given to applicants from outside the common bond who have better ‘paper’ qualifications. After six month of operation with the paid staff, the Board notices to its surprise a dropping off in activity and rise in the number of complaints about quality of service. Discuss what factors, particularly in the area of motivation, might be causing the decline in activity and rise in complains. Teamwork in C.N.C. Exercise: List three qualities of a successful team. Answer: Hopefully you remembered what we have said in Unit 2! There we suggested that a successful team has: - a clear agreed objective - definite roles for all members of the team - trust between team members Constructive informal roles (R.M.Belbin, 1981) Type Typical Features Company Worker Conservative, predictable Chairman Calm, self-confident Sharper Dynamic, highly strung Positive Qualities Good organiser, practical, hard working Treats all ideas on merits, clear on Objectives Has drive, challenges complacency and inertia Allowable Weaknesses Lack of flexibility Average in intellect or creative ability Prone to impatience Plant Resource Investigator Individualistic, unorthodox Extroverted, curious, communicative Imaginative, intelligent Tends to disregard practical details Liable to lose interest after initial enthusiasm Good at contacting people and exploring anything new Monitor - Evaluator Unemotional, prudent Good judgement, hard Inability to inspire or headed motivate others Team worker Mild, sensitive Promotes team spirit Indecisive in crisis completer - Finisher Painstaking, orderly, Perfectionist, able to Reluctant to ‘ùet go’, conscientious follow through worries about small details Belbin notes: ‘The useful people to have in the teams are those who possess strength or characteristics with service need without duplicating those already there. Teams are a question of balance. What is needed is not well balanced individuals but individuals who balance well with one another. In that way, human frailties can be underpinned and strengths used to full advantage.’ Other suggested team roles are based on: leadership, ideas, action, But, Belbin suggests, these are not enough for a team to be effective. In addition, the team needs: someone with sound judgement to evaluate ideas someone to keep the team working together someone to finalise anything that is started He also suggests other three types of teams that can be successful: - the team of ‘C.N.C. stable extroverts’ - the team where leadership is ‘in the hands of a superstar’ - the ‘Apollo company’ Let’s look briefly at these. A team of ‘C.N.C. stable extroverts’ usually includes some but not all of the key roles: such a team mainly comprises Team Workers and Resource Investigators who may also function as Company Workers. All members tend to be flexible and enjoy working in teams. Such a team can be successful but may be prone to complacency and over-optimism. The team with ‘Superstar Leadership’ (usually from the Chairman) could also be successful but it could just as easily fail, since so much depends on the ‘superstar’: if anything goes wrong the team tends to be slow to correct the problem. The ‘Apollo Company’ is a company which contains a high level of mental ability but has difficulties making effective use of these resources. A good Chairman is important if this type of team is to be succeed. Exercise: In relation to C.N.C.s and similar organisations, list three benefits that can be derived from teamwork Answers: You might have included some of the following: - improved motivation and commitment of team members - may result in more creative ideas and solutions to problems - teamwork promotes greater participation by members - individuals are personally empowered by working in a team In this section we looked at groups and teamwork, we first discussed different features of groups and of people within them, focusing on: - formal and informal groups - formal and informal roles - constructive and destructive groups. We then moved on to discuss teamwork, and in particular we looked in detail at Belbin’s work, which identifies eight key roles needing to be filled for a balanced and effective team. Finally we looked at some examples of teamwork in C.N.C. groups and other bodies, underlining how effective teamwork can be turned to the C.N.C.’s own benefit. Power When you have completed this section you should be able to: - evaluate positive and negative aspects of power - describe some of the main causes of conflict within organisations - state ways of resolving conflicts. Exercise: What is power? Attempt your won definition of power. Answer: Power is the ability of one social unit to influence the behaviour of another social unit and to achieve preferred situation or outcomes. Wilson and Rosenfeld, 1990 ‘My idea of power’, is something like this: A has power over B to the extent that he can get B to do something that B would not otherwise do. Robert Dahl, quoted in J. Gaventa, 1980 One of the most imprtant aspects of power ... is not to prevail in a struggle but to pre-determine the agenda of struggle - to determine whether certain questions ever reach the competition stage. Michael Parenti, quoted in Gaventa A may exercise power over B by getting him to do what he does not want to do, but he also exercise power over him by influencing, shaping or determining his very wants ... this may happen in the absence of observable conflict, which may been successfully averted. Stephen Lukes, quoted by Gaventa We can look at power in terms of: - individual aspects - aspects related to the organisational structure - aspects related to the external environment - more ‘hidden’ determinants of power Individual aspects of power We can consider the sources of individual power. French and Raven suggest five key bases: - Reward - the ability of one individual to reward another, e.g. a manager or Chairman’s ability to promote, pay higher salaries, etc., provides them with a source of power over the person who might be rewarded. - Coercive - if A has the power to operate sanctions against B, for example, the right to fire or reprimand B, then A has a coercive source of power. - Legitimate - if B accepts A’s right to request B to do something, then A has a legitimate source of power, derived from his/her authority. - Expert - if B believes that A has greater knowledge or skills, then A has another sence of power. - Referent - if others in an organisation ‘look up to’ A, then A is granted a source of power and a power base, i.e. loyal group of followers. adapted from Wilson and Rosenfeld, op. cit., discussing French and Raven (1960) Exercise: Which of the above bases of power do you think are relevant to exercise of power in a C.N.C., and who exercises such power? Answers: Potentially all five bases of power may be present in a C.N.C., but certainly the first three: Reward: the Board in particular has this type of power over the staff, sometimes in conjunction with the manager. Coercive: similarly, the board has power to dismiss or reprimand the staff or the manager. The Supervisory Committee has the power to suspend an Officer, but needs the approval of the general membership to uphold a suspension. Legitimate: the authority of the Board to make decisions derives from the Rules:, the authority of the manager to make decisions affecting staff is likely to derive from job descriptions or contracts of employment. Expert: This is more you should read and understand to following headlines in our source of power but, as the fictional example suggested, factors, such as limited access to information, or greater experience, or a 3rd level qualification, may be sources of this type of power, even if these factors are not relevant to particular context (i.e. someone’s view might carry more weight just because he/she has a degree, even if they actually know little about the issue being discussed). Referent: some leaders attract a loyal following, perhaps because of strength of personality, perhaps because of their genuine contribution to the C.N.C., or perhaps for less honourable reasons, such as an ability to use their ‘contacts’ to win favours for their followers. We would suggest that: - the fact that general members have the ‘ultimate’ authority is not always relevant to who makes decisions ‘on their behalf’. - even where the Board is the main source of power, there may be disproportionate influence of a minority on the Board. - in some cases the ‘real’ power may even lie with the manager, if he/she is effective in getting his/her priorities taken up by the Board. Ultimately, the positive exercise of power can become ‘empowering’, and this is and important issue for democratic organisations. How far can ‘empowerment’ be taken? - It can be empowering merely to be a member of a C.N.C., in the sense that a member has a stake in the ownership: however, in practical terms that might not mean very much. - A member can be empowered by gaining a specific benefit from the C.N.C., for example if the C.N.C. helps a member to escape the clutches of (loan or receivable) sharks, he/she can be materially empowered. - Involvement in the decision-making structures of the C.N.C. can be personally empowering: people gain confidence, skills, knowledge, which improve their abilities both in making a contribution to the C.N.C. and in a wider personal context. Guiding, coaching, facilitating principles Approach selection People in virtual organisations are individuals seeking contacts and orders but protecting their territory. They have to decide which kind of following educational, training, or learning approaches they select or how they will combine them: Niches protect their leaders from both competitors and new information. They are therefore responsible for selection of such educational mix which fits to their conditions. One option is to start after the broad education. Second option is to follow examples, images of organisations, organise excursions and practical placements. The third option is improving skills with the help of handbooks for managers. All these options enable copying only. The training option proposed here is based on project cycle and documentation exercising. Just exercising show you mistakes which needn’t be done in the real situations. 2. Study text: Goleman, D.: Working with Emotional intelligence. Bllomsbury 1998, ISBN 0 7475 3984 7 Guidelines for Emotional Competence Training Asses the job: Training should focus on the competencies needed most for excellence in a given job or role. Caveat: Training for irrelevant competencies is pointless. Best practice: Design training based on a systematic needs assessment. Assess the individual: The individual’s profile of strength and limitations should be assessed to identify what needs improving. Caveat: There’s no point in sending people for training in competencies they already have or do not need. Best Practice: Tailor training to the individual’s needs. Deliver assessments with care. Feedback on the person’s strength and weaknesses carries an emotional change. Caveat: Inept feedback can be upsetting, skilful feedback is motivating. Best practice: Use emotional intelligence in delivering initial evaluations of a person’s emotional competence. Gauge readiness. People are at different level of readiness. Caveat: When people lack readiness, training is more likely to be wasted. Best practice: Assess for readiness, and if some is not yet ready, make cultivating readiness an initial focus. Motivate. People learn to the degree they are motivated - for example, by realising that a competence is important to doing their job well - and making the competence a personal goal for change. No organisation but persons must change first. Caveat: If people are unmotivated, training will lack effectiveness. Best practice: Make clear how training will pay off on the job or for the individual’s career, or be otherwise rewarding. Make change self-directed. When people direct their learning program, tailoring it to their needs, circumstances, and motivation, learning is more effective. (Not teacher but learner should design the self adaptation to the organisational and market circumstances in the real time). Caveat: One-size-fits-all training programs fit no one specifically. Best practice: Have people chose their own goals for development and help them design their own plan for pursuing them. Focus on clear, manageable goals. People need clarity what the competence is and the steps needed to improve it. Caveat: Poorly focused or unrealistic programs for change lead to fuzzy results or failure. Best practice: Spell out the specifics of the competence and offer a workable plan to get there. Prevent relapse. Habits change slowly, and relapses and slips need not signal defeat. Caveat: People can become discouraged by slowness of change and the inertia of old habits. Best practice: Help people use lapses and slip-ups as lessons to prepare themselves better for the next time. Give performance feedback. Ongoing feedback encourages and helps direct change. Caveat: Fuzzy feedback can send the training off track. Best practice: Design into the change plan feedback from supervisors, peers, friends - anyone who can help coach, mentor, or give appropriate progress reviews. Encourage practice. Lasting change requires sustained practice both on and off the job. Caveat: A single seminar or workshop but not sufficient in itself. Best practice: Use naturally arising opportunities for practice at work and at home, and try the new behaviours repeatedly and consistently over a period of months. Arrange support. Like-minded people who are also trying to make similar changes can offer crucial ongoing support. Caveat: Going it alone makes change tougher. Best practice: Build a network of support and encouragement. Even a single buddy or coach will help. Provide models. High status highly effective people who embody the competence can be models who inspire change. Caveat: A do-what-I-say-not-what-I-do attitude sin superiors undermines change. Best practice: Encourage supervisors to value and exhibit the competence, make sure trainers do, too. Encourage. Change will be greater if the organisation’s environment supports the change, values the competence, and offers a safe atmosphere for experimentation. Caveat: When there is no real support, particularly from bosses, the change effort will seem hollow - or too risky. Best practice: Encourage change that fits the values of the organisation. Show that the competence matters for job placement, promotion, performance review, and the like. Reinforce change. People need recognition - to feel their change efforts matter. Caveat: A lack of reinforcement is discouraging. Best practice: Be sure the organisation shows it values the change in a consequential way: praise, a raise, or expanded responsibility. Evaluate. Establish ways to evaluate the development effort to see if it has lasting effects. Caveat: Many or most development programs go unevaluated, and so mistakes or pointless programs go unchanged. Best practice: Find measures of the competence or skill as shown on the job, ideally before and after training, and also several month (and if possible a year or two) later. Performance appraisal Exercise: What do you think are the main aims of a performance appraisal conducted by a C.N.C.? Answer: You might have included some of the following: - measurement of each job holder’s contribution to the overall aims of the C.N.C. - identifying where this contribution can be improved - improving communication and understanding between staff and management - giving the job holder a say in how she/he should be performing, thereby raising her/his commitment and morale - training needs can be identified and impact of training programmes can be assessed - possible pay increase and promotions can be decided on. Compensation benefits: Exercise: In your opinion, will a credit union generally attempt to maintain uniformity between staff in its payments and other benefits system, or will it make efforts to pay different levels according to experience, qualifications, and so on? Answer: Well, different C.N.C. will adopt different practices, but the tendency is probably to pay fairly uniform rates. The main reason for this is that the job responsibilities of most paid staff (except for the manager) are essentially similar. Also, the exaggeration of differences could have a damaging impact on teamwork. Management skill Explanation Performance appraisal Performance counselling The ability to review and rate objectively past performance and to discuss and agree actions/objectives for the coming period To ability to help a subordinate identify, explore and own His/her own performance strengths and weaknesses, reinforcing strengths and correcting weaknesses to achieve or maintain a high level of performance The ability to define clear, measurable, challenging but realistic results with deadlines for achievement The ability to define how and objective will be achieved, stating or agreeing who will do what by when and effectively anticipating potential difficulties, but can change and adapt plans when required The ability to make effective use of available resources, set and review priorities, make decisions and také responsibility of them The ability to identify the root cause of a problem to permit effective action The ability to chose between various options using sound judgement rather than bias The ability to achieve results through others, selecting the appropriate style for the situation To develop the ability of working within a team by individual recognition of styles and strengths and to identify the strengths of team members for maximum effectiveness and efficiency The ability to create in others a willingness and commitment to achieve the best performance of which they are capable The ability to organise oneself effectively and to maintain and efficient control of time The ability to identify and overcome difficulties of delegation The ability to extract effectively the necessary information from a candidate to permit comparison with the job requirements and enable a (later) decision to be made; to interest candidate in the organisation/job To identify assertiveness as a management skill. To distinguish between aggressive behaviour and to give and receive criticism in a constructive manner The ability to assess development potential effectively to train staff Objectives setting Planning Organising Problem – solving Decision making Leadership Team – building Motivation Time management Delegation Selection interviewing Assertiveness Developing staff Letter and report writing Leading and participating in meetings Manager 1 To enable clear, concise and effective communication in reports and letters The ability to identify specific results to be achieved, defining the appropriate structure, effective involvement of participants and ensuring that the outcomes are clear and acceptable 2 3 4 5 6 Giving a presentation to inform Giving the presentation to persuade Influencing Generating options and creative thinking Managing change Communicatio n skills: - To/with others - Listening skills - Questioni ng skills The ability to present facts/opinions in a logical and clear way that creates and maintains interest and achieves the level of understanding required The ability to present a proposal that highlights benefits to the receiver, proves the case, effectively handles questions and secures approval The ability successfully to convince others on the same level (or a higher level) to change / negotiate in order to meet his/her own objectives The ability to generate a wide range of novel options for evaluation The ability to identify opportunities for improving standards, to plan and organise change, to develop objectives and systems The ability to successfully communicate with others and to encourage others to as well To demonstrate sound listening skills To identify the varying types of question and which to use in various different situations Rating systém for management skills Rating 1 2 3 4 5 Explanation Rarely displays this skill, if at all Occasionally displays this skill but considerable development is required Moderately proficient in this skill but there is still scope for improvement Displays strength in this skill on some occasions, but not consistently Displays significant strength in this skill consistently To prevent perceptual error called ”hello effect” the rating systém for management skills should contain different viewpoints: Manager’s (marked in column as A) and self-assessment (marked in column as B), or self – assessment and other’s rating Which of management skills can be substituted by better information systems? - motivation using visual management principles - time management using weekly plans - performance appraisal using self-evaluation questionnaires - objectives setting using quality tools What are you responsible for in the group project? Show it in the last table of lecture 7.
