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International Leadership &

Management

IBMS

Year 2Term 6

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Chapter 19 (Mullins):

Organization Development

(Culture & Change)

Introduction:Organization Development is

concerned with improving theperformance of the organization and

its ability to change if necessary.

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Good performance depends on:

Developing the right organizational

culture

Correct use of change management

strategies

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1. Organizational culture

How things are done around here

1. Handys model: 4 types

Power culture

- small business

- central power figure

- e.g. family business

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Role Culture

- Large, bureaucratic, hierarchy

- procedures, rules and roles are central- e.g. police, MNC, civil service

Task culture

- matrix, adhocracy- power spread widely

- expert knowledge needed in different areas

- different tasks & projects are central- e.g. film industry (adhocracy),

pharmaceutical industry (3D matrix)

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Person culture

- individuals are central

- much autonomy, expertise- e.g. University, law firm, consultancy

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2. Deal & Kennedy

Risk

High LowFeedba

ck(ondecision

making,action

taken)

fa

st

slow

Tough-guy(e.g. police, surgeons)

Work-hard/play-hard

(e.g. mass consumerproducts: McDonalds,

Unilever

Bet-your-company(e.g. oil companies,

investment companies)

Process(e.g. civil service,

insurance companies)

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3. Importance of organizational culture

Performance dependant on right

organizational culture

- Must be developed, managed and

changed if necessary

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- HRM strategies:

1. Recruitment & selection: right fit

2. Induction: - learn culture quickly

- companies values & mission

- symbols, rituals & ceremonies

3. Training: e.g. team building,

co-operation

4. Rewards: demonstrate desired

behavior, e.g. innovation

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4. Organizational culture / Internationalculture

Companies need to take both into account

e.g.: McDonalds / US culture

Transferable to other countries?

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2. Organisational changeI) Resistance to change

Individual:- selective perception; bias

- loss security/habit

- economic reasons

- fear of unknown- loss of power/promotion possibilities

Group/organizational:- organizational culture

- lack of resources

- contracts/agreements already made

- threats to power (TM)

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II)Change Management Strategies

1. Shared commitment

2. Information about the change

3. Participative management style

4. Participation (e.g. quality circles)

5. HRM strategies

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Some examples of HR strategies: HR planning: - too few/too many?

- which strategy?

Recruitment & selection: recruit to support

the change

Training: facilitate the change

Performance assessment & rewards:

incentives for change

Employee relations: alternatives forredundancy

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Conclusion:

Organizations need to continually adapt

and develop.

Management must be able and willing

to make changes.

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Chapter 20: (Mullins)

Organisational Performance &

Effectiveness

Introduction:What makes an organisation perform

better?

What research/models can be used?

What role is played by leadership and

management?

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1. Research and models.

1. Peters and Waterman study, 1982.

62 successful companies, 8 characteristics: Bias for action

Close to customer

Autonomy & entrepreneurship

Productivity through people

Hands on, value driven

Stick to what you know best

Simple structure

Simultaneous loose-tight paradox

C iti i l t l f l

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Critic: companies later less successful

Relevance today

2. The learning Organisation

A culture of continuous learning.

4 characteristics (Garrett)

The organisation:

Values learning

Encourages people at all levels to learnfrom their work

Systems to catch information and move it towhere required

Able to transform itself continuously

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3. Total Quality Management (TQM)

An organisation committed to total

customer satisfaction through a continuousprocess of improvement and thecontribution and involvement of people.

Deming Japan

Kaizan: gradual continuous improvement in

all areas

Quality Circles

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Conditions for success

Commitment TM

Monetary rewards

4. Rummler and Brache

3 levels of performance:

Organisational level (strategies, structure, resources)

Process level (work flow)

Job/performer level (responsibilities, rewards, training)

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- Performance should be measured on all

3 levels

- Overall performance depends on howwell these 3 levels are managed

5. The EFQM Excellence Model

- Most widely used in Europe

- Based on previous TQM models

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The model helps organisations to involve allpeople in the organisation to continuously

improve their processes and measure results. innovation & learning enablers results

5 enablers:

Leadership

People

Policy & Strategy

Partnerships &Resources

Processes

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4 result areas:

People results

Customer results Society results

Key Performance results

2. Assessing Organisational Performance.

1. Benchmarking

- Use a successful company as benchmark- Ongoing process; ST and LT goals

- E.g. instrument is the Excellence Model.

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2. Gap Analysis.

Goals of the ActualOrganisation Performance

Gap Analysis

- Where are the gaps? What can be done

ST and LT?

- E.g. shortage of managers

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3. The importance of ManagementDevelopment (MD).

- Changes in the environment, technology,international competition

- Trend towards more employee

involvementMD requires:

Managers develop technical, social and

conceptual skills It needs to be continuous

Balance theory and practice

On-the-job and off the job training

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4. Conclusion

- Many models, ideas and theories on howto improve leadership and managementand hence performance of the

organisation.- Do not always work. Must be seen as

inspiration rather than solutions

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Chapter 4: The international

dimension of HRM

Introduction:

Globalism consequences for HRM?

What are the implications of cultural diversity?

How can an organization improve its

international communication & coordination?

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1. Cultural diversity

a) Hofstede: Cultural diversity along 5dimensions:

- Power distance

- Uncertainty avoidance

- Individualism

- Masculinity

- ST/LT orientation

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b) Hofstede:

- Later study (page 81)- Cultural diversity

- 4 clusters based on 2 dimensions

1 Pyramid of2 Well oiled 3 4

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1. Pyramid ofpeople

2. Well oiledmachine

3.Villagemarket

4.The family

Powerdistance

High Low Low High

Uncertainty

avoidance

High High Low Low

Character-istics

Hierarchy,Clear orders

Rules,Regulations

Ad-hocdecisions,

Human

relations

The boss,central fatherfigure

Example France,Argentina,

Italy, Japan

Germany,Switzerland

NetherlandsUSA

India,Indonesia

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c) Strategic implications of cultural diversity(looking at both Hofstede studies)

Centralization of decision making:

Pyramid Village

(centralized) (decentralized) Rewards:

Individualistic Collective

(individual rewards) (group rewards)

Risks:

Uncertainty avoidance varies per culture

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Formality

Pyramid & Well oiled Village

(formal) (informal) Organizational loyalty

Japan US & Europe

(Collective, life-long (Individual responsible

employment ) for own career)

ST LT orientation

China US

- Investment - Quick profit

- LT goals - ST goals

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2. International CommunicationChallenges:

a) Perceptual errors (see earlier lecture)

e.g. - Not enough /irrelevant information

- Stereotypes- Frame of reference (formed by

the group we identify with)

Need for care; awareness of our

perceptions; training needed

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b) Language

- Misunderstandings- Need for language training

b) Corporate culture- If different misunderstandings

- Needs to be integrated and coordinated

well, globally

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3. International coordination

- Organizations need to act locally,

however remain integrated/coordinated

a) Coordination mechanisms

- vary culturally

Japanese centralization: HQ makesall major decisions.

American formalization: formal

control systems, reporting back

European socialization: well trained

experts (ethnocentric staffing)

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b) Other coordination mechanics

I) Reinforce corporate culture

Shared believes, purpose (missionstatement)

Rituals (meetings, ceremonies,

dress down Friday) Symbols (logo, house-style,

slogans)

Heroes (company magazine)

Ambassadors (senior managers

travel around)

II) Standards and norms

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II) Standards and norms

Throughout companye.g. - code of conduct

- ISO-norm; quality certificate

- expats; standard training

III) Standard systems

IV) Concentration of expertise

Conclusion:

Globalism: - consequences for HRM- requires managers good training- extra attention to communication& coordination

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Chapter 30: Ethics & HRM

Introduction:

What do we mean by ethics and CSR?

How do others effect our ethical behavior?

The role of HRM

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1. Ethics and CSR

Ethical dilemmas

CSR: - To what extent do companies feelresponsible?

- What are they doing about it?

2. Effect of others on our ethical behavior

- Asch

- Milgram

3. Ethics across borders

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4. Ethical trends

I) Is quality of work life decreasing?

- companies offer less job security

- emphasis on managing own career

- younger generations?

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II) Increasing use of IT; increasing alienation, stress?

- managers; e-mail communication

- labor saving technology

- working at home: - loneliness- vague work/home boundaries

- physical stress:- RSI

- e-mail management needed

5 Th R l f HRM

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5. The Role of HRM

- management remains personal- managers :

- respect individual and culturalneeds

- LT vision

- International orientation

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Chapter 22: Health, safety & welfare

Introduction:

The importance of Health, safety & welfare

Safety training H, S & W abroad

Welfare = collective term for Health & Safety

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Welfare ( health + safety):

Physical aspects + Emotional aspects

e.g. e.g.

- safe environment - counseling facilities- working hours - improve communication

- holidays - improve leadership style

- social needs (Mayo)

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1: The importance in businesse.g.

unsafe working conditions overworked employees

inappropriate leadership style

poor communication

2: Laws

many; to protect employee

E.g. working time

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3: Safety training

1) 3 main purposes

understand safety risks at work

know safety rules and regulations

persuaded to comply to safety rules

2) When should safety training be given?

Induction period

On-the-job

Refresher courses

- bad habits

- fire-drills

4 H lth & f t b d

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4: Health & safety abroad

Laws relating to health & safety

- different?

- upheld?

Adequate medical facilities available?

- hospital?

Counseling facilities available? Communication with HQ?

Extra health & safety training needed?

e.g. working in tropical climate; risk of Malaria

Ch t 24 E l t it &

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Chapter 24: Equal opportunity &

diversity

Introduction:

Equal opportunities: providing equal

opportunities for everyone

Managing diversity: managing an increasingly

diverse workforce

How can these be encouraged/implemented?What problems need to be overcome?

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1.The problem is complex and deeply rooted

e.g. Equal pay for men & women:

main barriers are perceptual (week 1)

e.g. a) length or service men: lesscareer breaks

b) previous salary men: higher,

therefore better

c) bias of managers: men better

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2. Approaches to equality

a) Equal opportunities approach:

Attempt to give everyone an equal chance

to get job/promotion

Emphasis: groups & minimizing differences

Focus: recruitment, HR department,

legislationAim: decrease discrimination

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Problems:

maybe not all minority groups protected

not always lead to in discrimination other employees feel disadvantaged (reverse

discrimination)

b) Managing diversity approach

Attempts to opportunities for all

Emphasis: individuals; seeing differences as an

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Emphasis: individuals; seeing differences as an

advantage

Focus: managing individuals/all managers

Aim: individuals potential/performance

organizations results

Problems: progress slow

training managers?

focus on employees in organization, notenough on attracting new employees

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Conclusion: Both approaches needed

3. Model for introducing managing diversity

(Ross & Schneider)

6 steps:

1. Assess current situation

2. Set aims

3. Spread ownership

4. Policy development

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5. Manage transition- training:

a) management: understand

different cultures

b) minority groups: understand

organizational culture

6. Manage programme

- who is responsible?

- evaluate results

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Chapter 31: Work-life balance

Introduction:

Why is there a need for work-life balance?

How can it be achieved?

What are the benefits?

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1. The need for work-life balance

Work Free time

balance?

women in workforce

older employees

24/7

Faster pace of work

Younger generations

2. Work-life balance in practice

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e.g. - work from home- unpaid sabbatical

- unpaid leave

- part-time

- job-sharing

- flexibility in hours worked> flexitime> compressed hours> annual hours

2. Benefits

- absenteeism

- motivation, performance

4 P bl

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4. Problems

Financial/technical limitations

e.g. video conferencing Career development limitations

Options only for women

Full time part time (workload)

Attitude managers

e.g. - part time workers

- difficult to manage- working at home?

Availability of work-life balance options?

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5. Managers need training

- managing at a distance- maybe require different/higher levelcompetencies

e.g. - communicating at distance- maintaining control & coordination

- empowerment/delegation tasks

- performance management not based on time at work, but on

results

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Chapter 19: Career development

Introduction:

How & why are careers developed?

How can individuals manage theircareer development?

How can the organization supportcareer development?

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1. How and why are careers changing?- environment less stable, less

predictable

- organizations need more flexibility

- effects the psychological contract:

Employees Organizations

expectations expectations

of organization of individual

Psychological contract

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- Psychological contract has changed:

Previously (+ 20 years ago):

Commitment & chance develop career

Loyalty & job security

Nowadays:

Commitment & chance develop career

Individuals manage own career & less job

security

2 I di id l t

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2. Individual career management

What strategies can be used?

(Gould & Penley)

Create opportunities

Self presentation Seek career guidance

Extended work involvement

Build up & use network

Learn to play golf (relationship boss)

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3. Organizational support for career

development

Make career moves clear

Path traditional

Grid more flexible

Roles most flexible

- The more flexible the better

- Encourage & reward lateral moves (i.e.development of different competencies)

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Fast track programmes

Management support

Career counseling

Career centre / mobility centre

Assessment centre