Module 4: Organizational Behavior and Management

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Module 4 Organizational Behavior and Management
Professor Cristina Banks banks_at_haas.berkeley.edu O
ffice Hours Wednesday 2-4 _at_ F526
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The Conceptual Framework

• Status Report The Current State of the U.S.
  Workforce
• Implications for Business
• Fundamental Building Blocks for a Company
• Fast Food WarsHow to win?
• Developing the Management Team

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Workforce Generations

• Baby Boomers (b. 1946 1964)
• Baby Busters (b. 1965 1983)
• Baby Boomlets (b. 1984 2002)

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Status ReportThe context for managing people.

• The workforce is getting older.
• More Boomers in current workforce than other two
  generations.
• Average age of workforce around 45.
• Boomers nearing retirement.
• Large wave of retirements expected starting in
  2010

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Status Report

• The workforce is getting smallerfewer people
  entering the workforce than those leaving the
  workforce.
• 77 million Boomers will be replaced by 66 million
  Busters? 11 million person gap
• By 2008, the number of young adult workers
  entering the labor force (25-40) will shrink by
  1.7 million.

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Status Report

• The workforce is becoming more ethnically
  diverse.
• By 2020, US population will be 63 White, 13
  African American, 7 Asian, 16 Hispanic.
• In CA, population will be 40 White, 60
  minorities and immigrants speaking over 80
  languages.
• In CA, Hispanic population growth rate is the
  highest in absolute numbers
• Asian population is most rapidly growing minority
  group in US

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Status Report

• The workforce is becoming less well-educated.
• High school graduation rates are declining.
• High school drop-out rate up to 25 for
  minorities.
• 25 of high school graduates cannot read at 8th
  grade level.

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Status Report

• More jobs available that require skills fewer
  jobs available for unskilled workers.
• 52 of high school graduates lack the basic
  skills required to do their jobs adequately.
• 80 all jobs will require some sort of
  post-secondary education.
• 97 of youth hope to go to college, 63 enroll,
  30 receive bachelors degrees.
• By 2010, 167 million skilled jobs will be filled
  by only 157 million skilled workers.

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The Problem

• Too few workers coming into workforce.
• Widening skill gap more skilled jobs, fewer
  skilled workers.
• Greater ethnic diversity, and more complex
  management .
• Greater competition for skilled workers globally.

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Implications for Business

• Job vacancies in areas we can least afford.
• Greater need for cultural awareness and ways of
  managing diverse cultures sensitively.
• Growing segment of US workforce that cannot
  qualify for higher paying jobs.
• Increasingly difficult to retain talented people
  in a company.

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Solutions

• Develop the personal and professional skills of
  your employeesto increase the overall skill
  level of the workforce.
• Manage employees performance to maximize the
  talent we have.
• Increase satisfaction of workers to build loyalty
  and commitment.
• Utilize talent wherever it is found.

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Where To Start

• What are the fundamental building blocks of a
  company?

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Building Blocks Of A Company

• Mission The companys purpose and how it will
  achieve its purpose.
• Business Goals The companys performance
  targetshow it measures success.
• Business Strategy Overarching plans and programs
  that outline how the company will meet its goals.
• Organizational Culture Norms and values that
  guide how employees behave in the company.

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Strategy Formulation
Figure 52
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Hierarchy of Strategy
Figure 51
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The Fast Food Wars Whos Winning in this Space?

• McDonalds
• Vs.
• In-N-Out

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The Mission

• McDonalds
• To be the worlds best quick service restaurant
  experience. Being the best means providing
  outstanding quality, service, cleanliness and
  value, so that we make every customer in every
  restaurant smile.

• In-N-Out
• To give customers the freshest, highest quality
  foods you can buy and provide them with friendly
  service in a sparkling clean environment.

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The Mission

• McDonalds
• Customer experience
• In-N-Out
• Fresh food
• Who they want to be to the customer dictates how
  the organization is built and operates.

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Environmental AnalysisThings They Might Be
Concerned About

• Customer food tastes
• What customers spend their money on
• General economy and how much money people have to
  spend
• How many people in the workforce are available to
  work in the restaurants, especially managers

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Organizational Analysis Things They Might Be
Concerned About

• How much money they have to spend each month
  (cash flow)
• How much turnover they have among managers
• How resistant managers are to change efforts
• How many talented employees intend to be managers
• Operational (in)efficiencies

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Corporate StrategyOverall Way the Company will
Grow and Manage its Business

• Open new stores
• Grow customer base
• Improve efficiencies (cut costs)
• Acquire competitors

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Business StrategyPlans for Improving
Competitive Position

• McDonalds Plan to Win
• People
• Products
• Place
• Price
• Promotion

• In-N-Out
• Fresh, best-tasting products
• Loyal, highly effective management and staff

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Functional StrategiesPlans at the Restaurant
Level

• McDonalds
• Offer new products that customers want.
• Batch cook product.
• Improve recruitment of employees by offering
  attractive training and benefits
• Improve retention of mgrs
• Reduce costs through waste control, operating
  efficiencies.

• In-N-Out
• Make the best-tasting hamburger at a reasonable
  price.
• Cook orders one at a time.
• Employ friendly, hard-working, and loyal people.
• Pay above market and promote from within

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Building the Management TeamWhat should
managers be focused on?

• Planning Determining what is best to do and how
  best to get it done.
• Organizing Determining how best to arrange an
  organizations resources and activities.
• Directing/Leading Guiding and motivating
  employees to meet objectives.
• Controlling Monitoring performance to ensure
  goals are being met.