Management, 8e Schermerhorn Chapter 4

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Management, 8eSchermerhornChapter 4

• Instructor Dr. Robert Kenmore
• Zarb School of Business
• Hofstra University

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Organization of the Text Management (8th
Edition) by Schermerhorn
PART 1 PART 2 PART 3 PART 4 PART 5
Introducing Management Context Mission Organi
zation Leadership

• The Dynamic New Workplace
• Management Past to Present
• Ethical Behavior Social Responsibility

• Environment, Organizational Culture, and
  Diversity
• Global Dimensions of Management
• Entrepreneur-ship Small Business

• Information Decision Making
• Planning Controlling
• Strategic Management

• Organizing
• Organizational Design Processes
• Human Resource Management

• Leading
• Motivation Theory Practice
• Individual Behavior Performance
• Teams Teamwork
• Communi-cation Interpersonal Skills
• Change Leadership

Exam 2
Exam 1
Exam 3
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Reflections

• What is the connections between customers and
  quality?
• Should all stakeholders be treated equally? If
  not, why not? If so, how?
• Is there a difference between risk and
  uncertainty?
• How does one begin to measure the value of
  intangible capital/assets?

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Chapter 4Environment, Organizational Culture,
and Diversity

• What is a customer-driven organization?
• What is a quality-driven organization?
• What is the external environment of
  organizations?
• What is the internal environment and
  organizational culture?
• How is diversity managed in a multicultural
  organization?

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How Systems Work

• Inputs
• People
• Capital
• Information
• Technology

• Outputs
• Finished goods
• or services

• Work Processes
• Turn inputs into outputs

• CUSTOMERS
• Use goods/services

Outcomes

• Satisfaction
• Disappointment

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What is a customer-driven organization?

• External customers purchase the organizations
  goods or utilize its services.
• Internal customers are the persons and groups
  within an organization who depend on the results
  of others' work to do their own jobs.

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Schermerhorn/Management, 7e Chapter 4, Figure
02-03
Figure 4-3 The importance of external and
internal customers.
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What is a customer-driven organization?

• Customer service lessons
• Protect reputation for quality products.
• Treat customers right.
• Assessing customer needswhat, where, and when.
• Adding valuehigh quality, low cost, and on-time
  delivery.

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What is a customer-driven organization?

• Customer relationship management involves taking
  a strategic customer-centered focus in building
  relationships and adding value.
• Supply chain management involves strategic
  management of all operations relating to
  suppliers of resources.

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What is a quality-driven organization?

• What is Quality?
• The degree of excellence of a thing (Websters
  Dictionary)
• The totality of features and characteristics
  that satisfy needs (ASQ)
• Fitness for use
• Meeting expectations
• An objective list of attributes, along with
  subjective preferences for each
• Is highly consistent with the New Economy

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What is a quality-driven organization?

• International Standards Organizations (ISO)
  certification
• Indicates that a company meets a rigorous set of
  quality standards
• ISO 9000
• Indicates that a company has met rigorous quality
  standards in all operations

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What is a quality-driven organization?

• Total quality management (TQM)
• Quality principles are an integral part of
  organization's strategic objectives.
• Applying them to all aspects of operations
• Committing to continuous improvement
• Striving to meet customers needs correctly the
  first time

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What is a quality-driven organization?

• Crosbys four absolutes of management for total
  quality control
• Quality means conformance to standards.
• Quality comes from defect prevention, not defect
  correction.
• Quality as a performance standard must mean
  defect-free work.
• Quality saves money.

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What is a quality-driven organization?

• Quality and continuous improvement
• Demings basic proposition is that the cause of
  quality problems may be
• Some component of the production/operations
  process.
• Internal to the production/operations system
  itself.
• Continuous improvement
• Always looking for new ways to improve upon
  current performance.

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What is a quality-driven organization?

• Quality circles
• A group of workers who meet spontaneously or
  regularly to discuss ways of improving quality of
  their products or services.
• Can result in cost savings from improved quality
  and increased customer satisfaction.

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What is a quality-driven organization?

• Quality and manufacturing technology (but
  concepts can apply to services too)
• Lean production
• Uses new technologies to streamline systems
• Flexible manufacturing
• Processes can be changed quickly to produce
  different products
• Agile manufacturing/mass customization
• Permits quick production of individualized
  products

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What is a quality-driven organization?

• Quality and product design
• A good design has eye appeal and is easy to
  manufacture with productivity.
• A robust design can withstand manufacturing
  fluctuations.
• Design for manufacturing emphasizes lower
  production costs and high-quality products.
• Design for disassembly involves taking into
  account how components will be recycled.

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What is the external environment of
organizations?

• The general environmentall of the background
  conditions in the external environment of the
  organization including
• Economic
• Social-cultural
• Legal-political
• Technological
• Natural environment
• Historical

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What is the external environment of
organizations?

• The specific (task) environmentactual
  organizations, groups, and persons with whom an
  organization must interact in order to survive
  and prosper.

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What is the external environment of
organizations?

• Stakeholders in the specific environment broadly
  include
• Investors/Owners
• Customers
• Employees
• Suppliers
• Regulators
• Competitors

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Schermerhorn/Management, 7e Chapter 4, Figure
02-01
Figure 4-1 Multiple stakeholders in the
enviroment of organizations.
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What is the external environment of
organizations?

• Competitive advantage involves utilization of a
  core competency that clearly sets an organization
  apart from competitors and gives it an advantage
  over them in the marketplace.

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What is the external environment of
organizations?

• Companies may achieve competitive advantage in
  many ways, including
• Products
• Pricing
• Customer service
• Cost efficiency
• Quality

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What is the external environment of
organizations?

• Environmental uncertainty is a lack of complete
  information regarding what developments will
  occur in the external environment.
• Two dimensions of environmental uncertainty
• Complexity
• Rate of change

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Schermerhorn/Management, 7e Chapter 4, Figure
02-02
Figure 4-2 Dimensions of uncertainty
in organizational environments.
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What is the internal environment and
organizational culture?

• Organizational culture is the system of shared
  beliefs and values that develops within an
  organization and guides the behavior of its
  members.

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What is the internal environment and
organizational culture?

• Strong cultures
• Commit members to do things that are in the best
  interests of the organization.
• Reinforce these habits.
• The best organizations have strong cultures that
• Are performance-oriented
• Emphasize teamwork
• Allow for risk taking
• Encourage innovation
• Value the well being of people

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What is the internal environment and
organizational culture?

• Levels of Organizational Culture
• Observable culture
• What one sees and hears when walking around an
  organization.
• Core culture
• Core values that influence behavior and give rise
  to observable culture.

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Schermerhorn/Management, 7e Chapter 4, Figure
02-04
Figure 4-4 Levels of organizational
cultureobservable culture and core culture.
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What is the internal environment and
organizational culture?

• Leadership and organizational culture
• Leaders should establish and maintain appropriate
  core values.
• Criteria for evaluating core values
• Relevance
• Pervasiveness
• Strength
• Symbolic leaders use symbols to establish and
  maintain a desired culture.

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How is diversity managed in a multicultural
organization?

• Organizational subcultures
• Cultures based on shared work responsibilities
  and/or personal characteristics.
• Common subcultures include
• Occupational
• Functional
• Ethnic
• Racial
• Generational
• Gender

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DIVERSITY IN TEAMS
What should happen
Why it may not

• Mistrust
• Negative stereotyping
• Misunderstanding
• Inefficiencies
• Stress as pressure to perform builds

• Improved creativity
• more ideas, perspectives
• Less groupthink
• multiple viewpoints open
• discussion
• More concentration
• everyone tries hard

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DIVERSITY TEAM PERFORMANCE
Effective Team Process gains gt losses
Ineffective Team Process losses gt gains
Team Performance
Critical Zone
Forming Storming Norming - Performing
Team Development Stages / Time
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How is diversity managed in a multicultural
organization?

• Personal challenge of managing diversity
• Accepting the goal of diversity maturity
• Organizational challenge of managing diversity
• Changing organizational culture
• Changing organizational mission and practices

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Schermerhorn/Management, 7e Chapter 4, Figure
02-05
Figure 4-5 Glass ceilings as barriers to women
and minority cultures in traditional
organizations.
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Schermerhorn/Management, 7e Chapter 4, Figure
02-06
Figure 4-6 Multicultural organizationsfrom
affirmative action to managing diversity.