M2 - 1ST MID TERM
management: “The planning, organizing, leading, and controlling of human and other resources to achieve
organizational goals efficiently and effectively”
Efficiency + Effectiveness = f (Goals + Resources) allocate: resources /set: goals
+
important to accomplish the goal that to rush it
CULTURAL DIMENSION - HOSTFADE
THE KNOWLEDGE MANAGEMENT - WHAT IS THE PURPOSE OF KNOWLEDGE MNGMT?
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knowledge refers to facts, info & skills acquired through education or experiences
it leeds to familiarity & proficiency needed for effective performance
The explicit and systematic management of vital knowledge and its associated processes of creating, gathering,
organizing, diffusion, use and exploitation, in pursuit of organizational objectives.
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explicit: unless u make it visible and explicit u wont bre able to manage
systematic: systematicity enhances the consistency of a best practice
vital: good judgement must be used to identify what is a critical kownledge
processes: as any other activity, the set of steps is important
—> creating, gathering, organizing, sharing, using, and exploiting knowledge —> all aligned with achieving organizational
goals
key ideas:
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visibility is essential: knowledge must be visible and explicit to be managed
systematicity involves the consistency of best practice
use good knowledge to identify critical knowledge
the importance of following a step by step plan
INFORMATION IS POWER:
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information becomes power when we: use it, have the will to use it
efficiency —> implies being smart in how we use information
timing: corner store of success/ good timing can give organizations the opportunity to improve
DEDICATION: (1) the quality of being dedicated or committed to a task or purpose (2) the action of dedicating
WHERE'S THE FUTURE FOR INTL BUSINESS?
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China and India are the darkest on the map, indicating they are leading in new business creation.
The US also stands out as a major hub.
Lighter shades on the map represent lower rates of new business creation.
What this shows:
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The future of international business is likely shifting towards emerging markets, especially in Asia.
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Countries with rapidly growing economies, large populations, and increasing entrepreneurship are becoming
global centers for innovation and investment.
This hints at a possible rebalancing of global economic power from traditional Western economies to new hubs
in Asia.
Video on China - How China Was Perceived Before the Pandemic
GLOBALIZATION VS DEGLOBALIZATION
How China Did It
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Attracting FDI (Foreign Direct Investment) and importing technology.
Transition from a poor country—how was this achieved?
Industrial Concentration
Led to an unbalanced economy, but with high speed and industrialization.
Technological Power
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Wind power
Solar power
Online payment systems
Digital currencies
Artificial Intelligence (AI) - China as a key player in key sectors.
CULTURE vmv
VISION, MISSION, VALUES
PLANNING PROCESS - HENRY FAYOL
managerial functions - POLC
PLANNING: primary managerial function —> setting goals, establishing strategies, and developing plans to coordinate
activities
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definitions: the process of determining how the organization can get where it wants to go and what it will do
to accomplish its objectives - “ the systematic development of action action programs aimed at reaching agreedupon business objectives by the process of analyzing, evaluating, and selecting among opportunities which are
foreseen” harry jones
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purposes of: (1) minimize risk by reducing uncertainties surrounding business conditions and clarifying the
consequences of related management actions —> to increase organizational success (2) establish a
coordinated effort within the org —> planning is absent , coordination and organizational efficiency also
absent —> ensure integration among an org business units
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advantages: (1) helps managers to be future oriented, forcing them to look beyend their everyday problems to
forecast what situations may confront them. (2) enhances decision coordination (3) emphasizes
organizational objectives, reminding managers of org goals
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primacy of: basis for organizing, influencing & controlling functions of managers
QUICK QUIZ:
1.
2.
3.
4.
How is culture linked with values?
How maturity relates to planning?
Why could companies not see the advantages of planning?
Is it fair to say that pursuing efficiency demands planning?
BUSINESS OBJECTIVES
how enduring and stable are objectives / VMV
specific (and intended) business related results to accomplish
- desired reaching point
- criteria to focus resources + efforts
- implies difference targets after breaking them down
- `ways to performance measurement
AIMS: goals the organization wants to achieve
OBJECTIVES: specific actionable targets that need to be achieved
OBJECTIVES should be SMART
1. specific: clearly defined (why, who, when); well established = how; simple, sensible, significant
—> a specific objective has much greater chance of being accomplished
2. measurable: clearly translated = into numbers; numbered = in logic stages; meaningful, motivating
—> a set of criteria helps to focus toward the accomplishment (don’t loose track)
3. achievable: balanced = challenging but realistic; connected = business capabilities; agreed, attainable
—> a well adjusted set of initiatives are helpful to enhance capabilities (keep it viable)
4.
relevant: contribute= to take advantage of the situation; explore = business opportunities; leverage =
business capabilities; reasonable resourced, realistic result-oriented
—> a pertinent orientation improve business position (update whenever were necessary)
5.
timely: deadline = when must be reached; feasible = for te time given; timing = sensing the seize; timesmarted oriented
—> a well grounded preposition is the best orientation to reach objectives (finish around expectations)
PETER FERDINAND DRUCKER - MBO
MANAGEMENT BY OBJECTIVES - 5 phases & 5 steps
STRATEGIC PLANNING:
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long-range planning that focuses on the organization as a whole. In conducting strategic planning, managers
consider the organization as a total unit and as themselves what must be done in the long term to attain
organizational goals
to assist an organization in establishing priorities and to better serve the need of its constituency
requirements of strategic planning: flexible, practical and also serve as a guide to implementing programs —>
evaluating how the programs are doing & making adjustments when necessary
—> a broad and general plan developed to reach long-term objectives
SPECS OF STRATEGIC PLANNING
1.
PROCESS
2. TOOLS
3. REQUIREMENTS
a. vision and mission
b. environment scan
c. gap analysis
d. benchmarking
e. strategic issues
f. strategic programming
g. emergent strategies
h. evaluation of strategy
i.
j.
review of strategic plan
strategic thinking
recap
WHY PLANNING?
1. orgs must plan to coordinate their activities
2. orgs must plan to ensure that the future is taken into account
3. orgs must plan to be rational
4. orgs must plan to control
ADVANTAGES OF STRATEGIC PLANNING
- in short, provides much-needed focus and direction
- allows a new organization to make fundamental decisions about the market in which it will operate
- allows an existing organization to review its progress to date
- gives u an opportunity to take a step back and think strategically about your orgs past, present & future
- allows u to answer questions relating to ur client and customer needs and expectations and ur orgs ability to
meet or exceed those needs and expectations
- gives u a chance to consider or reconsider ur orgs future
- allows u to identify strategies, tactics, tasks, and subtasks that will help ur organization attain strategic intent
and achieve its stated objectives
- provides an opportunity for the org to identify the resources needed to achieve for success
- allows u to consider unlikely, unexpected, or unplanned obstacles
- provides an excellent forum for the involvement, contribution
POLC - ORGANIZING
The Assignment of Tasks, Grouping them logically into Departments, Delegating proper authority assigning the Resource
needed
- assignments
- chain of command
- tasks
- priorities
- grouping “logically”
- salary
- departments
- vacations
- delegating authority
- resource needed
THE MINTZBERG MODEL
the representation of “something”, usually in a simplistic way, that is used either (1) to describe, (2) analyze, (3) predict
the behavior of the “thing” that is representing
what are the organizational structures made of
PARTS OF THE ORGANIZATION
collaboration areas in which is divided the structure
1.
operating core: employees who themselves produce the basic prods &
services of the org/ directly support their production
2.
strategic apex: top general management of the org, and their staff
3.
middle line: comprises those managers who sit in a direct line of formal
authority between people of the strategic apex and operating core
4.
support staff: those groups that provide indirect support to the rest of
the org
5. techno structure: those analysts, out of the formal “line” structures, who apply analytic techniques to the
design and maintenance of the structure and to the adaptation of the organization to the environment
coordinating mechanisms
a. mutual adjustment: individuals coordinate their own
work, by communicating informally with each other
b. direct supervision: one individual gives specific
orders to others and thereby coordinates their work
c. standardization: the work is coordinated by
imposition (by processes/ results) or by
internalization of standard skills or knowledge, usually
before they begin to work
i.
work processes
ii.
of outputs
iii.
of skills
a system of flows: they represent true explanation of how the organization works
(mintzberg)
1.
2.
3.
4.
5.
a system of formal authorities
a system of informal communications
a system of regulated flows
a system of ad hoc decision processes
system of work constellations
ORGANIZING - the concepts
- organizational architecture:the org structure, control systems, culture, and human resource management
systems that together determine how efficiently and effectively organizational resources are used
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organizational structure: a formal system of tasks that coordinates and motivates organizational members
so they work together to achieve an organization’s goals
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organizational design: the process by which managers make specific organizing choices that result in a
particular kind of org. structure
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job design: the process by which managers decide how to divide tasks into specific jobs
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job enlargement: increasing the number of different tasks in a given job by changing the division of labor
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job simplification: the process of reducing the number of tasks that each worker performs
LINKING WITH THE STRUCTURE
- authority: the power to hold people accountable for their actions and to make decisions concerning the use of
organizational resources
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hierarchy of authority: an organization’s chain of command specifying the relative authority of each manager
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span of control: the number of subordinates who report directly to a manager
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line manager: someone in the direct line or chain of command who has formal authority over people and
resources at lower levels
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staff manager: someone responsible for managing a specialist function, such as finance or marketing
THE MINZTBERG MODEL - pt2
Step 1: Stable Elements (the “bones” of the organization)
Think of these as the things that don’t change much — they are always there in every organization:
1.
2.
5 Parts →The five basic components inside any organization:
○
Strategic Apex = the top bosses (CEO, directors).
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Middle Line = managers in between (department heads, supervisors).
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Operating Core = the workers who actually produce goods or deliver services.
○
Technostructure = experts who design systems, methods, or standards (like engineers, planners, accountants).
○
Support Staff = people who help but are not directly in production (IT, HR, legal, janitors, cafeteria).
5 Coordinating Mechanisms →Because these five parts can’t just exist separately, they need ways to coordinate.
Mintzberg says there are five main ways to do it:
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Mutual adjustment = people talk and coordinate informally.
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Direct supervision = a manager gives direct orders.
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Standardization of processes = the work is defined in procedures/rules.
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Standardization of outputs = the result is defined (e.g., “must produce 100 units”).
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Standardization of skills = workers are trained/educated so they know how to act.
So “stable elements” = the pieces of the organization + how they coordinate.
Step 2: Dynamic Elements (the “blood flow” of the organization)
Even if you have the five parts and coordination methods, organizations aren’t frozen. They are alive.
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That’s why Mintzberg adds 5 flows →the ongoing movement of communication, information, authority, decisions, and
work.
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These flows represent the daily activity that makes the organization move, instead of just being a static chart.
Step 3: Structure (the “whole body”)
When you combine:
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the 5 parts + 5 coordination mechanisms (stable bones),
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with the 5 flows (dynamic blood),
you end up with 1 organizational structure →the overall way the organization is designed and functions.
STRUCTURE , PARAMETERS, FACTORS?
design parameters: they are the structural elements on what the organization has autonomy of decision-making
(variables affected by contingency factors)
9 DESIGN PARAMETERS
1. Job Specialization (Positions)
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This is about how tasks are divided among people.
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Two dimensions:
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○
Horizontal specialization →how many different tasks a person does.
■
If very specialized →the person repeats one narrow task (assembly line).
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If enlarged or rotated →the person does more varied tasks.
Vertical specialization →how much control and decision-making a person has.
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If low →only executes orders (operational worker).
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If enriched →has authority to plan and decide (managerial jobs).
2. Behavior Formalization (Positions)
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How much the work is guided by rules and procedures.
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Three “basic forms”:
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Job description →defines the tasks of each position.
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Task orders (workflow) →instructions on how work should be done.
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Rules/procedures →general regulations that standardize behavior.
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In highly formalized jobs →little flexibility; everything is predefined.
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In low formalization →people decide freely how to act.
3. Training and Indoctrination (Positions)
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Instead of rules, organizations can rely on people’s skills and values.
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Training: prepares workers with technical skills (inside or outside the company).
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Indoctrination: shapes beliefs and values so employees share the same culture and vision.
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Example: universities or hospitals →professionals act based on their education + shared values, not only rules.
4. Unit Grouping (Superstructure)
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How people are grouped into units/departments.
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Units can be based on:
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Function (marketing, HR, operations).
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Market (product line, customer type, geography).
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Skills, process, time, output, client, or place.
Grouping affects coordination and control.
5. Unit Size (Superstructure)
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Refers to the span of control: how many people report to a manager.
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Larger unit size = more people per supervisor.
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Smaller unit size = closer control but less efficiency.
6. Planning and Control Systems
(Lateral Linkages)
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Ways to make sure the organization stays on track.
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Two main types:
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○
Action planning →defines how to do things step by step.
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Performance control →sets goals and measures what results are achieved.
Choice depends on size, complexity, and stage of the organization.
7. Liaison Devices
(Lateral Linkages)
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Tools to ensure coordination and communication between units.
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Examples:
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Coordinators
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Task forces
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Permanent committees
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Integrator managers
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Matrix structures
Used when units are interdependent and problems/conflicts need solving.
8. Vertical Decentralization
(Decision-making system)
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Decision power is distributed down the hierarchy (from top managers to lower levels).
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Example: a factory supervisor decides how to allocate shifts without asking the CEO.
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More vertical decentralization →more autonomy at lower levels.
9. Horizontal Decentralization
(Decision-making system)
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Decision power is distributed across functions and specialists, not just managers.
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Example: engineers, analysts, or experts outside the hierarchy influence decisions.
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More horizontal decentralization →more participation of professionals in decision-making.
So, Mintzberg is saying that designing an organization is about making choices in these 9 areas.
Some companies rely more on rules (formalization), others on skills and values (training/indoctrination), others on decentralization,
etc.
CONTINGENCY FACTORS: internal and external aspects that influence (and/ or determine) the organization and its performance
STRUCTURAL CONFIGURATIONS: particular combination of design parameters, that being consistent among them fit with
contingency factors (natural clusters)
ORGANIZING - the concepts
RESPOSABILITY
1. general responsibility: guides and directs the execution of the function through the person accepting operating
responsibility
2. operating responsibility: is directly responsible for the execution of the function
3. specific responsibility: is responsible for executing a specific or limited portion of the function
4. must be consulted: whose area is affected by a decision and who must be called on to render advice or relate
information before any decision is made or approval is granted (this one does not, make the decision)
5. may be consulted: may be called on top relate information, render advice, or make recommendations before the action
is taken
6. must be notified: must be notified of any action that has been taken
7. must approve: must approve or disapprove the decision
DELEGATION
- gives employees the freedom to pursue tasks in their own way
- establish mutually agreed-upon results and performance standards for delegating tasks
- encourage employees to take an active role in defining, implementing, and communicating progress or tasks
- entrust employees with completion of whole projects or tasks whenever possible
- etc.
STRUCTURE
- “the ways in which the work is divided and later coordinated”
- it elements are: parts, mechanisms, flows and parameters
- also seen as: set of design parameters that is a function of contingency factors
contingency factors: age &size, technical system, environment, power`
design parameters are linked through hypothesis - an idea which is suggested as a possible explanation for a particular situation
or condition
1.
AGE & SIZE:
a. the older/ larger the company, the more formalized the behavior
b. structure define the age of founding of the industry
c. the larger the org, the more elaborated its structure, that is, the more specialized its tasks, the more
differentiated its unions, and the more developed its administrative component
d. the larger the org, the larger the size of its average unit
2.
TECHNICAL SYSTEM:
a. the more regulating the technical system, the more formalized the operating work and the more
bureaucratic the structure of operating core
b. the more sophisticated the technical system, the more elaborated the administrative structure, specially the
larger and more professional the support staff, the greater the selective decentralization (to that staff), and
the greater the use of liaison devices (to coordinate the work that staff)
c. the automation of the operating core transforms a bureaucratic administrative structure into an organic one
3.
ENVIRONMENT:
a. stability: (stable/ dynamic) is related with factors such as stability of the government, unpredictable shift in
economy, unexpected changes in customers and suppliers
b. complexity: (simple /complex) is related with comprehensibility of the work to be done and the technology
involved in the operating core
c.
market diversity: (integrated/ diversified) is related with the variety of customers/ markets that the company
has
d.
e.
f.
the more dynamic the environment, the more organic the structure
the more complex the environment, the more decentralized the structure
the more diversified the organization’s market, the greater the propensity to split it into market-based units
(given favorable economics of scale)
extreme hostility in its environment drives any organization to centralize its structure temporarily
disparities in the environment encourage the organization to decentralize selectively to differentiated work
constellation
g.
h.
4.
POWER:
a. the greater the external control of the organization, the more centralized its structure
b. the power needs of the members tend to generate structures that excessively centralized
c. fashions favors the structure of the day (and of the culture), sometimes even when inappropriate
whenever a contingency factor changes…. there should be an adaptation in design parameters
CONTINGENCY THEORY