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MGMT 1302 Notes Week 1.1- Intro and Amazon What does it mean to manage? When an entity (us people) use assets and resources to achieve a goal within an environment. Main focus on the forces that drive an entity:
- How do employees influence their organizations?
- How do organizations influence their employees?
- Who holds the power in the organization-employee relationship? Amazon: What external factors affect amazon? Government Regulations Internet (power outages) Shareholders Customer Feedback Supply chain, logistics, taxes Amazon was asking for proposals for new HQ locations, and people started hating cities like NYC for wanting to give Amazon 800 Million in tax incentives rather than help their community. Amazon started receiving backlash about how they treat their employees, like skipping bathroom breaks, injuries, and pregnant workers. New Amazon warehouse in HRM, using lots of robotic technology. They have an external issue: the power outages, which is they are now putting their money into local renewable energy. However, Amazon is still undercounting its carbon footprint. They scored low for both transparency and integrity Week 1.2- Management Trends Organizations that failed due to bad strategic decisions: General Motors Steel Mills in the US AOL – Time Warner – M&A Mortgage Crisis – Banking practices Blockbuster spurns Netflix Motorola AON (insurance) – bribery fine Starbucks – trying to block Ethiopia from patenting its coffee – multiple actors – corporation, govt., NGOs, public Kodak – innovated digital tech, but lost out on capitalizing it Reasons for bad strategic decisions
Organizational Individual Lack of Strategic Clarity Inexperience Vague process, accountabilities, authorities Life, Time, Senior Leadership Pressure Lack of commitment Stress and Overwork Repeated pattern of decision making Pressure from members, ego and power Few people making the decisions No personal values Organizational hubris Lack of balance between emotion and logic Groupthink No solid decision-making process Model of Path Dependence Elements of Path Dependence
- Initial Conditions
- Self-Inforcing mechanisms
- Lock In Executive Hubris
- Undisciplined leaps into areas where a company cannot be the best
- Pursuit of growth beyond what a company can deliver with excellence
- Risky and ambitious decisions that clearly indicate conflicting and negative evidence
- Denial of the possibility of being imperiled by external threats or internal erosion
- Arrogant intellect Hysteresis and Path Dependence- Hysteresis is the dependence of the state of a system on its history, it implies that the outputs of a system do not just depend on the contemporaneous values of the inputs applied. Trend Cycles- Trend: This provides information on longer-term movements in seasonally adjusted data series over several years. Cycle: A. sequence of smoother fluctuations around the longer-term trend in part characterized by alternating periods of expansion and contraction
Future of Leadership Trends AI and Technology Pace of Change New Talent Landscape Purpose and Meaning Morality, Ethics, and transparency Globalization Leadership and Decision-Making- Making a decision and sticking to it is the cornerstone of good leadership skills. Decision-making is an ongoing process in every business; large or small. Having critical thinking skills allows one to ascertain the problem and come up with a solution that is beneficial to the company and its employee Managers are constantly called upon to make decisions in order to solve problems. Decision-making and problem-solving are ongoing processes of evaluating situations or problems, considering alternatives, making choices, and following them up with the necessary actions. Path Dependency and Decision-Making- A dynamic theory assumes that initial decisions can increasingly restrain present and future choices. Path Dependency describes a process of increasing reduction in a range of variety and therefore, a range of choices. Strategy on the other hand always implies having choices. Week 2.1- Can I be replaced by a computer General AI Narrow AI Automation Machine Learning Chatgpt?
- Large Language Model: ”show” your machine learning device vast amounts of text. Wikipedia. Twitter. Etc.
- Because the text is how we express knowledge, the patterns it recognizes often align with knowing things.
- Based on the prompt, it will retrieve relevant pieces of text (knowledge), and format that text according to patterns it is familiar with.
- Add a hefty layer of programmed instructions to manage the output Large Language Models -> Deep Learning -> Machine Learning -> Narrow Intelligence -> AI Since AI is only 80-85% accurate… small errors in data that are used to train can cause millions of mistakes. It's only good enough if the decisions are based on population, not individualism. As well as when there are no negative consequences of such decisions and when humans are worse. AI is at its best when there is lots of data on the problem and its solution. Or when. The problem is well- defined. Or when the solution requires prediction, pattern recognition, or optimization. Or when the task is repetitive, and 80% accuracy is accepted.
AI should be thought of as an assistant, rather than a decision-maker. Just because your job can be placed by a computer, it does not mean you should. To work alongside computers:
- Trust LESS
- Expect Errors
- Ignore the hype
- Be data literate
- Determine who is accountable
- Connect disparate worlds
- Don’t be afraid to go slow We should not invest in advanced AI technology without also investing in advancing society, businesses, and governments at the same pace. We have to advance people, not just technology. Week 2.2 - Power Talking about Leadership means talking about Power! The State can kill you: US presidents can totally kill you. A couple of years back, Trump had a guy killed (Iranian Gen. Soleimani) who’s WAY more influential and connected than you, or SM influencers. Plus, he’s been perfectly capable of successfully calling for mob violence directed at high-security targets, and that might still be the case. Different ways of looking at Power:
- Power is getting people to do what they otherwise wouldn’t do
- Power is a demonstrated capacity
- Power is relational Where does the power come from?
- How do I gain and keep power?
- Core Dynamics: Capacity and Consent Power as a capacity has a quantitative and coercive term: hard power. Power is the input, control is the output. Coercion VS Incentive: Threaten you with bad stud VS regulate your access to the good stuff Sources of Power
- Power as capacity can emerge from different places
- Different resources count, but as a materialist formulation.
- Power stuff is individual power. E.g. I have stuff that traditionally can be used to change people’s behavior
- Control over the organization of how we get stuff is system power.
Leaders are people with power: to direct, make decisions, and influence and direct the decisions of others
- The leadership stuff from your assignment is about options, but success as a leader is a combination of character, skill, and experience in the exercise of power If you are going to lead within an organization, you are going to need to move back and forth between these elements, balance them
- Individual / system, Subjective/intersubjective, Material/ideal You are an individual, seeking to influence other individuals, but working within an organization (which is a kind of system, with both formal and informal elements)
- Leadership isn’t strictly about getting people to do what you want, it’s about getting people to want to do what you want them to do Week 3.1/3.2- Leadership Styles and Teams Leadership is the ability to influence, motivate, and enable others to contribute toward the effectiveness of the organizations of which they are members. Autocratic Leadership The autocratic leadership style is based on the leader having all authority and responsibility, making decisions without consulting subordinates, and expecting prompt implementation. This style lacks flexibility and is characterized by guidelines, procedures, and policies set by the leader. However, this style is not commonly supported in most situations. Democratic leadership The democratic leadership style involves subordinates being involved in decision-making and their contributions being valued. The leader delegates authority and is responsible for final decisions, but communication flows actively in both directions. This is a preferred leadership style that is characterized by fairness, competence, creativity, courage, intelligence, and honesty according to statistics. Strategic Leadership The article discusses strategic leadership as a type of leadership that involves a leader who heads an organization and is geared towards creating a high-performance life, team, or organization. Strategic leadership fills the gap between the need for new possibilities and practicality and delivers what an organization expects from its leadership during times of change. 55% of strategic leadership normally involves strategic thinking. The article emphasizes the importance of developing effective strategic leadership skills for success in today's fast-paced and constantly changing business environment. Transformational Leadership The article discusses transformational leadership, which is focused on initiating change in organizations, groups, oneself, and others. Transformational leaders motivate others to achieve more than they originally intended and set higher expectations, leading to higher performance. Followers of transformational leaders tend to be more committed and satisfied due to the empowerment they receive. The article emphasizes the importance of transformational leadership in bringing about positive change and achieving higher levels of success. Team Leadership
The article discusses team leadership, which involves creating a vision for the future and providing a sense of purpose and direction for the team. Team leadership requires working with the hearts and minds of all team members and recognizing that teamwork may not always involve trusting cooperative relationships. The most challenging aspect of team leadership is whether it will succeed, as poor leadership qualities can lead to failure. The article emphasizes the importance of effective team leadership in achieving success and creating a positive team dynamic. Cross-cultural leadership The article discusses cross-cultural leadership, which typically exists in societies with various cultures. Cross- cultural leadership has become increasingly important in the globalized market and requires leaders who can adjust their leadership styles to work effectively in different environments. The article notes that many leadership styles observed in the United States and Canada are cross-cultural due to the diverse cultures that live and work in these countries. The article emphasizes the importance of developing cross-cultural leadership skills in today's diverse and interconnected world. Facilitative Leadership The article discusses facilitative leadership, which is dependent on measurements and outcomes and requires a high level of skill to master. The effectiveness of a group is directly related to the efficacy of its process, and a facilitative leader will adjust their level of involvement in the process based on the group's functioning. An effective facilitative leader will monitor group dynamics and offer process suggestions and interventions to help the group stay on track. The article emphasizes the importance of developing facilitative leadership skills to promote effective group processes and achieve positive outcomes. Laissez-fair Leadership The article discusses laissez-faire leadership, which gives authority to employees and allows them to work as they choose with minimal or no interference from their leader. Research has consistently found that this type of leadership is the least satisfying and least effective management style. The article emphasizes the importance of leadership involvement and direction in achieving successful outcomes, as well as the need for effective communication and support in the workplace. Transactional leadership The article discusses transactional leadership, which is a leadership style that maintains or continues the status quo and involves an exchange process between the leader and followers. Transactional leadership focuses on clear expectations, giving feedback, and providing immediate, tangible rewards for carrying out the leader's orders. The article emphasizes the importance of effective communication, performance clarification, and goal- setting in achieving successful outcomes with this leadership style. Coaching Leadership The article discusses coaching leadership, which involves teaching and supervising followers to improve their skills in operational settings where results or performance require improvement. A coaching leader motivates, inspires, and encourages followers to achieve success. The article emphasizes the importance of developing coaching skills to help followers improve their performance, reach their goals, and achieve positive outcomes in the workplace.
Increasing group cohesiveness
- Increasing socio-emotional cohesiveness.
- Keep the group relatively small.
- Strive for a favorable public image to increase the status and prestige of belonging.
- Encourage interaction and cooperation.
- Emphasize members’ common characteristics and interests.
- Point out environmental threats (for example, competitors’ achievements) to rally the group.
- Increasing instrumental cohesiveness
- Regularly update and clarify the group’s goal(s).
- Give every group member a vital “piece of the action.”
- Channel each group member’s special talents toward the common goal(s).
- Recognize and equitably reinforce every member’s contributions. Frequently remind group members they need each other to get the job done. Week 4.1- Organizational Structure, Design, and Forces The organizational structure is designed to prevent chaos through an orderly set of reporting relationships and communication channels. Organizations determine: the roles people should be assigned and prescribe relationships between them
- What people do
- What skills do they need in their position
- With whom they interact
- What information do they have access to
- Who they are accountable to Organizational design is the process of constructing & adjusting an organizational structure to achieve its goals. Organizational structure is the linking of departments and jobs within an organization. Structural Aspects of an organizational chart are things like: formal lines of authority & responsibility and formal systems of communication, coordination, and integration. Coordination = more specialization = greater capacity and less connection to the overall goal Coordination is what re-establishes that connection. Organizational Structure = specialization + coordination, and is expected to derive from the goals of an organization Specialization is split into 5 parts:
- Strategic Apex- Decides what the organization will do, set goals
- Middle Line- Meditate/interpret between Apex and Core, line management, device implementation
- Operating Core- Performs the task of the organization
- Techno-Structure- Planning, Coordination, Standardization
- Support Staff- Logistics; keeping the lights on Modes of coordination
- Mutual Adjustment- decided informally with cooperation
- Direct Supervision- Command and control approach & supervisor responsible for instruction, output & monitoring
- Standardization- Work process/procedure, output, skills, knowledge, and values Common functions of central management:
- Manage the process of decision making
- Make sure decisions are (can be) made
- Stakeholder participation, full information, due diligence
- Referee the process
- establish and enforce rules/procedures for decision making
- Manage decision-makers’ time
- Filter/steer / direct decisions to the most appropriate group
- Manage conflict
- Provide means/resources / channels to resolve conflict
- Promote the collective/corporate perspective
- Yay, team! facilitate the incorporation of individual vision/goals into the collective framework
- The devil’s advocate
- The hard questions
- Why say yes, why not say no Differentiation- The process of deciding how to divide work in the organization Integration- The process of coordinating the different parts of the organization Basic Structural Dimensions Formalization – The degree to which the organization has official rules, regulations, and procedures Centralization – The degree to which decisions are made at the top of the organization Specialization – The degree to which jobs are narrowly defined and depend on unique expertise Standardization – The degree to which work activities are accomplished in a routine fashion Complexity – The degree to which many different types of activities occur in the organization Hierarchy of Authority – The degree of vertical differentiation across levels of management Span of Control –The number of employees reporting to a supervisor. Basic Organizational Structures Simple Structure – Centralized form of organization that emphasizes direct supervision and low transmission Functional Structure – Form of an organization that groups employees based on the function they perform Divisional Structure – Form of an organization that groups employees based on product, service, client, geography Matrix Structure – Dual-authority form of structure that combines functional and divisional structures, typically through project teams Organizational Structures Unitary – everything starts from the center, Head is the BOSS Centralized – stronger control of the Head Decentralized – more autonomy to groups, possible silos, less support from the center for all units
Lack of innovative response to changing environment -> No coordinating effort High level of conflict ->Departments work against each other, not for organizational goals Week 4.2- Change Management Why do we change on purpose? External Forces- Customers, competitors, shareholders, technology, government, CSR, resource scarcity Internal Forces- Capacity, capabilities, dissatisfaction, desire, R&D Entropy- The natural tendency of systems is to disorder chaos Organizations choose intentionally to change to survive or to advance. Sometimes, you do not see that you need to change until it is too late. Organizations are easy to change: systems, processes, structure, whatever. It’s people that make it difficult (and complex). Why would an intelligent and competent person resist change?
- People resist change when they perceive that the change is a threat to them in some way
- They may not understand: What should change, Why change is needed (benefits), and how to change
- They may understand those things, and want to avoid them
- They may understand perfectly well the change and the fact that it is needed for the organization
- They may also realize that the beneficial change for the organization will not be beneficial for them personally What do employees fear in a new role?
- New knowledge, new interactions, new responsibilities, new types of abilities and personalities People may resist change because?
- They don’t understand the need for change, aren’t informed, personal security is threatened, happy with the status quo, fear becoming obsolete, and change is happening too quickly, the organization may not be ready for change Change Management- Managing the “people side of change”, making changes in a systematic, planned, and organized manner, effective leadership of organizational change, communicating the process of change The Stages of Change Model Precontemplation, Contemplation, Determination, Action, Relapse, Maintenance ADKAR Awareness of the need for the change Desire to support the change Knowledge of how to change Ability to demonstrate new skills and behaviors Reinforcement to make the change stick Lewin’s Force Field Analysis Model
- Driving forces
- Push organizations toward change
- External forces or leader’s vision
- Resistance to change – employee behaviors that block the change process Kotter’s Model
- “Establishing a sense of urgency”
- “Forming a powerful guiding coalition”
- “Creating a vision”
- “Communicating the vision”
- “Empowering others to act on the vision”
- “Planning for and creating short-term wins”
- “Consolidating improvements and producing still more change”
- “Institutionalizing new approaches” If you are planning to introduce a change, you have to think about all three facets
- some are about processes (a journey)
- some are about people changing (or "being changed")
- some are about the people leading the change (implementing Guidelines of Change
- Creating an urgency for change
- Information sharing, are we going broke? Is there an opportunity? What are the consequences of doing nothing?
- Reducing the Restraining Forces
- Communicate actively and support new behaviors (train, encourage, and reinforce)
- Involvement (vs participation), Negotiation, and Coercion Resistance Behaviour
- Apathy (inaction, lack of interest, etc.)
- Passive resistance (delay tactics, the persistence of old behaviors, etc.)
- Active resistance (voicing, coalition, etc.)
- Aggressive resistance (threats, strikes, boycotts) Dealing with resistance to change can be done using education and communication, participation and empowerment, support, facilitation, employee assistance programs, and finally exit. STARBUCKS 4. Week 5.1- Managing for Climate Change Ecosystems are complex.
- Rigid protocols have limited application
- Successful management in one instance, failure in another
- Expertise helps only if coupled with ‘thinking on your feet
- Each context is unique
- Uncertainty will remain – unknown unknowns
- Reducing paved areas to deal with rainwater and heat
- Restore supply ecosystems to increase biodiversity
- Resiliency Think on your feet
- Anticipate, prepare for, and respond to hazardous events, trends, or disturbances related to climate
- Assess how climate change will create new, or alter current, climate-related risks
- Take steps to better cope with these risks Climate Change Management
- Use ecosystem services, work with nature, not against
- Reinforce with human-made structures Benefits and Challenges
- Reduced energy costs (saving $$)
- Reduced operation costs (saving $$)
- Insulation from volatility (e.g., oil prices)
- Opportunities for renewable energy investment profits
- Particularly in carbon tax trading jurisdictions
- New business and investment opportunities
- Cost/benefit of ‘first adopters’
- Corporation Profile Building
- Carbon-neutral companies
- Corporate ‘green’ governance Week 5.2- Government and Change Why don’t governments do what we want them to do? We can account for the discrepancy by assuming that they're all SOBs or we can think about how power is more complex because someone else is more powerful, there is limitations on how much power can be used and how Not enough power? The people in government aren’t unified (party, cabinet, region, politician vs. public servant/bureaucrat, ego)
- The organizations within government aren’t unified (political staff, public servants, departmental, line vs. Arm’s length)
- It is unusual for any specific, “real-world” actor to have the power to do whatever he wants
- Big stuff (like, say, climate change) needs coordination (that’s what big tent parties are for)
- Even little stuff often needs bargaining Limits on how much power can be used? Policy = action by the government (or deliberate inaction); it’s what the government does (or doesn’t do) on purpose
- All policy is allocative, i.e., sometimes it can have winners, but it always has losers (pipelines)
- People, organizations, etc. affected by the policy aren’t passive; the contribution to the process (trying to influence what policy is. made), and they can resist policy once enacted
- Government can usually compel, but we know from past discussions, coercion is resource intensive, and the
harder you push, the harder people might push back, until it’s not about the thing you’re fighting over, it’s about demonstrating your ability to win the fight Even if the government can coordinate, and potentially has enough power to force something through, it won’t necessarily do so, because of decreasing returns on effort Limits on how the power can be used? Any effort to change things past a certain point is bound to fail because the state itself exists to stop it
- that’s why to change things at a fundamental level, you need to not just change the government, but change the state itself, and its’ larger role.
- Again, the truckers, and their "ruling committee" idea
- All "reform" politicians, in fact, every politician, have the same problem, including every PM, and every aspiring PM (such as the next Conservative leader)
- the system that puts them in power (and which they pledge to “clean up”, however, they interpret that idea), is also the system that limits what they can do.
- There are limits to who can be “winners” and “losers”, and limits to how much you can “win” and “lose”
- Also why do they tend to use generic language that can be readily interpreted in multiple ways , e.g. "freedom Week 6.1- Impact of Change on Global Landscape EXAMPLE 1: TEEMILL = External Stimulus = Change in an organization GOAL 1: Circular supply chain
- Spinning cotton generates by-products, including seeds that are turned into seed cakes
- used to make vegetable oil and feed for cattle
- creates extra value
- Every product produced by Teemill is designed to be sent back when it’s worn out or the customer no longer wants to wear it
- printer ink used is slightly more expensive than normal ink, the composition allows it to be removed more easily
- QR code in the wash-care label generates a free post label, which can be used to send the garment back to Teemill, earning credit towards the next purchase GOAL 2: Sustainable local ecosystems:
- Cotton is grown using organic fertilizers, irrigated through rainwater harvesting, and protected using insect traps rather than chemicals
- Co-planting with other crops also helps fix nutrients and assists with pest control
- Cattle/livestock poop returns nutrients to the natural system GOAL 3: Reduce chemical and water inputs
- Factories recover, clean, and recirculate processed water
- The plant where garments are cut and sewn is powered by renewable energy
- Crops protected by insect traps, not pesticides GOAL 4: Reduce surplus production
- Products are made in real time - seconds after they’ve been ordered, so they only make what's needed and there's no waste
- a customer places an online order, specifying a colour, size, and design
- the t-shirt is then printed a few seconds after the order is placed and sent out to the customer
- SLEPT: Socio-Cultural, Legal, Economic, Political, Technological.
- LONGPESTLE: Local, National, and Global versions of PESTLE. (These are best used for understanding change in multinational organizations.) PESTLE vs SWOT
- Both have different areas of focus
- PEST Analysis looks at "big picture" factors that influence decisions, markets, or potential new business
- SWOT Analysis explores these factors at a business, product-line or product level.
- They complement each other and are often used together Internal Forces
- Low performance
- Low satisfaction
- New mission
- New leadership
- Conflict Some reasons for change-
- Adapting to market changes
- Digital transformation and technology upgrades
- Solving internal problems with organizational structure and bureaucracy
- Improving processes and procedures
- Expanding the company to reach new audiences
- Launching a rebranding campaign Implementing Organizational Change
- Defines future state, outcomes, and results
- Assess current state and readiness
- Design a change management plan
- Implement and mentor the plan
- Stabilize the change
- Evaluate mid and long-term results
