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Managing People and Organisations

Foundation of Management and Organisation

Key Concepts!

v Management = the process of communicating, coordinating + accomplishing action in the
pursuit of organisational objectives while managing relationships with stakeholders,
technologies + other artefacts, both within as well as between organisations.
v Organisations = systematically arranged frameworks relating people, things, knowledge
+ technologies in a design intended to achieve specific goals.

Key Learning Concepts/Authors!

Taylor + Ford (Scientific Organisation of Work):
Scientific management = the principle that there is one best way to organise work and
organisation, according to a science of management based upon principles of
standardisation of time + routinisation of motion as decided by automotive experts.
Taylor proposed that scientific management could design the best of performing any set
of tasks on the shop floor, based on detailed observation, selection + training!
Four Principles of management;
i)
Developing a science of work
ii)
Scientifically selecting + training the employee
iii)
Combining the sciences of work + selecting + training of employees
iv)
Management + workers must specialise + collaborate closely
Collaboration:
Manager planning, designing, supervising
Worker executing manual labour

Weber, Bentham + Barnard (Bureaucracy + power):
Bureaucracy = an organisational form consisting of a hierarchy of differentiated
knowledge + expertise in which rules + disciplines are arranged not only hierarchically
in regard to each other but also in parallel.
Describes ideal organisations as rational-legal bureaucracy
Webers 3 types of authority;
i)
Charismatic authority
ii)
Traditional authority
iii)
Rational-legal authority
Legal: submission to rules + procedures
Rational: predictable, non-arbitrary
Fair: right of appeal
Negatives;
Depersonalization
Demystification

Mayo (The Human Factor):
Hawthorne effect = when a group realizes that is it valued + forms social relations
amongst its members, productivity rise as a result of the group formation what
happens when informal organisation occurs.
Special attention was to be paid to the satisfaction of individual human needs.
Manager has to be;
- Social clinician
- Fostering the social skills of those with whom the manager worked.
Mayos conclusion; real problems encountered in work were the lack of well-knit human
groups more training in social skills was required.

Follett (The Human Factor):

With experience in modes of living + acting which shall teach us how to grow the social
consciousness.
Argues, Organisations, like communities, could be approached as local social systems
involving networks of groups.
Believes, Full collaboration of employees + managers, soughting their willingness to
make these values compatible.
Three principle of management:
i)
Functions are specific task areas within organisations which should be allocated
the appropriate degree of authority + responsibility necessary
ii)
Responsibility is expressed in terms of an empirical duty.
iii)
Authority flows from an entitlement to exercise power, based upon legitimate
authority.

Power, Resistance + Post-Bureaucracy

Key Concepts!

v Power = the chance of an actor to realize their will in a social action, even against the
resistance of others.
v Legitimacy = attaches to something, whether a particular action or social structure,
when there is a widespread belief that it is just and valid.
v Uncertainty = the inability to know how to continue some action, a lack of a rule or
undecidability about which rule to apply.
v Soft Domination = characterised by the administration of rules that give managerial
discretion to managers while reinforcing the strength of centralised authorities, because
those who are delegates how that their obligation is to act creatively but to do so within
the systems of authority (Courpasson)
v Resistance = consists of attitudes and activities that aim to thwart, undermine + impede
managerial initiatives construed by management as illegitimate resistance against
legitimate authority.
v Isomorphism = a similarity in form of organisms of different ancestry, in organisation +
management theory usually used in the context of institutional theory to refer to a
situation in which organisational designs + practices in different organisations are
nonetheless similar.

Key Learning Concepts/Authors!

The Milgrim Experiment (Sources of Power):
Volunteers to take part in what they were told was a study of the effect of punishment
on memory + learning.
Volunteers instructed to administer what they thought were increasing levels of electric
shocks to a protesting victim.
Psychiatrists predicted less than 0.1% would administer high shock levels.
Results of the Milgrim experiments:
- 62.5% continued to the highest shock level.
- Many subjects will obey the experimenter no matter how vehement the pleading of
the person being shocked.
- This was seen time + again in studies + has been observed in several universities
where the experiment was repeated.

Weber (Types of Power):
Authority, charismatic, traditional + rational/legal (Bureaucratic)
Domination = coercive power over others.

Sources of Power:
Legitimacy
- When there is a widespread belief that something is just + valid.
- Giving that something power over individuals.
- Authority Charismatic/traditional/rational/legal
Uncertainty
- Inability to determine the preferred course of action.
- Individuals unsure/questioning.
Strategic contingency theory
- Management are in charge of strategies to adapt to the environment.
- Managers will have power if;
Managing a subunit that copes with uncertainty.
Not dependent on other units.
Not easily substitutable.
Central to the organization system
Resources dependency theory
- The control of resources, results in power!
- Power will give access to more resources.

Forms of Resistance:

Compliant Resistance
Whistle Blowing
Hidden Agenda
Distancing oneself
Denouncing unethical Using the organisations
Maintaining appearances
practices
rhetoric to impose your views
Small acts of resistance
Often becomes an outcast
Building a business case for
Sabotage
a CSR or gender party
Collective Resistance
Productive Resistance

Union
Creating an enclave
Spontaneous coordination Underlining key points of
(social networks)
resistance + key points of
Constructive opposition or convergence
systematic approach

Post Bureaucracy, Pervasive + Concertive Controls, Positive Power:
Limits of bureaucracy include;
- Coercive power = relies on non-voluntary involvement
Likely to elicit resistance
- Rule tropism
Rules become absolutes rather than means to an end
No adaptation

Follett (Democratic Power):
Power over = Coercive
- Authoritarian homogeneity
Power with = Coactive
- Democratic diversity
Participate
Empowering
Educative
Establish polyphony

Culture

Key Concepts!

v Culture = patterns of shared meanings + understandings that people use habitually to
make sense of the world around them.
v Norms = the tacit + unspoken assumptions + informal rules, the meaning of which
people negotiate in their everyday interactions.
v Artifacts = concrete observable manifestations of a culture.
v Organisation culture = the deep, basic assumptions + beliefs that are shared by
organisational members. Members habitual ways of making decisions + presenting
themselves + their organisation to those who come into contact with it.
v Strong Culture = one in which the norms + core values are widely shared.

Key Learning Concepts/Authors!

Levels of Culture:
Level 1: Artifacts
Level 2: Values
Level 3: Basic assumptions

Artifacts = concrete observable manifestations of a culture.
- Physical artifacts decoration of a building, furnishing, styles of clothes, looks, etc.
- Symbolic artifacts logo, image, brand, etc.
- Language type of language used, specific, jargon, etc.
- Myths, rites + stories, Christmas party, Melbourne cup, etc.
Espoused values = a persons or social groups consistent beliefs about something in
which they have an emotional investment as they express them.
Basic assumptions = the essence of culture! Intangible, mainly unconscious, and tacit
frames that subconsciously shape values + artifacts.

Hofstede (National Culture):
Hofstede; (measuring what are the common norms within a culture)
Assume that a nation has one, commonly shared culture
Culture is a mental program, or software of the mind
Hofstedes national cultural dimensions;
- Power distance
- Uncertainty avoidance
- Individualism vs. collectivism
- Masculinity vs. femininity

Organisational Culture:
Organisational culture = comprises the deep, basic assumptions, beliefs + shared values
that define organisational membership.
Refers to the members habitual ways of making decisions, + presenting themselves +
their organisation to those who come into contact with it.

Enron Story:
Enron before the fall;
- Energy + commodities trading in the energy business: oil, gas + associated products.
- More than 100M US$ revenue in 2000
- 7th American company in 1999
- The place to be for all top American MBAs
- Went bankrupt within a period of a month (2001)
The main manipulations;
- Artificially high revenues are declared (based on future value)
- A complex structure of more then 3000 subsidiaries.
- Audit companies were accomplices (conflict of interest)

-
-

Members of the board were accomplices (conflict of interest with consulting)

Banks + analysts were accomplices (conflict of interests with financial activities:
shares management + loans)
- A strong connection with political power (members of congress + the bush
administration)
The Consequences;
- Loss of employment + pension for the employees
- Dismantlement of Arthur Andersen
- Implementation of new accounting rules worldwide in order to avoid this type of
manipulation occurring again

Perspectives on Culture:

Integrationist Perspective:
Insist on organisational homogeneity
Strong + commonly accepted culture
Shared organisation-wide agreement of
managerially sanctioned values
An integrated culture leads to performance

Fragmentation perspective:
Insist on differences between individuals
Cultures are fragmented, unstable, fluid +
temporary
Always in flux
Specific to each individual

Differentiation perspective:
Insist on differences between groups
More than 1 culture is likely to be the norm
Cultures come + go
Organisations made up of many subcultures
Subcultures can become legitimate +
dominant cultures

Leadership

Key Concepts!

v Leadership = the process of directing, controlling, motivating + inspiring staff toward the
realization of stated organisational goals.
v Leader = (a) leads people as a ruler; (b) inspires people as a motivator; (c) facilitates or
guides them as a coach and mentor.
v Motivation = the psychological processes that drive behaviour towards the attainment or
avoidance of some object.
v Theory X = orientation assumes that people are lazy, require structure, direction +
control, + want to be rewarded with money for a job well done.
v Theory Y = orientation assumes that people crave responsibility + autonomy, want to be
treated with respect + are driven towards self-actualisation (Pitsis).

Key Learning Concepts/Authors!

Content Theories of Motivation:
Physiological Safety Relational (social) Esteems Self-actualization!
Self-determination:
- Self-determination theory (SDT) = a theory of motivation that emphasises our
intrinsic needs for being seen as competent, liked + free from control of others.
- Intrinsic motivation = internal factors that drive behaviour such as enjoyment, self-
expression, etc.
- Extrinsic motivation = external factors that drive behaviour such as money
avoidance of punishment, etc.

Process Theories of Motivation:

One is more likely to behave in a certain way if;
- Efforts lead to a level of performance
- The efforts get the results you expect
- You value the outcome

Perspectives on Leadership:
- Personality Traits: theories assume certain measurable characteristics exist that are
unique to leaders.
- Behavioural: theories attend only to observable behaviours + how leaders act.
- Contingency + Situational: approaches emphasise contextual factors as key to
leadership effectiveness
- Postmodern: perspective underlines the enabler role of leaders

Trait;
Leadership + culture (GLOBE leadership study);
- Charismatic/values-based leadership, which refers to leadership that is perceived
to be visionary, inspirational, self-sacrificing + operates decisively integrity.
- Team-oriented leadership is collaborative, team playing, diplomatic, caring for
others + administratively competent.
- Humane leadership operates with modesty + humanely
- Participative leadership is democratic + participative
- Self-protective leadership is self-centered, status conscious, face-saving +
procedurally oriented.
- Autonomous leadership is highly individualistic, independent, autonomous +
unique.

Behavioural;
Behavioural leadership is concerned only with observable behaviour. You either act like
a leader or you do not.
Notion that there are 2 underlying behavioural structures that characterise leadership;
i)
Interacting + relating to other human beings
ii)
The task at hand, or the technical side of work
Blake + Mouton created the managerial/leadership grid!

Contingency Theory;
Robert Houses Path-Goal Theory of Leadership = Different type of leadership approach
depending on certain goals/objectives.
- Directive = clarifies goals, what must be done to achieve them + the outcomes of
achieving the goals. Use rewards, discipline + punishment. Mostly task oriented.
- Supportive = shows concern for the needs + aspirations of people at work. Provide a
supportive + enjoyable working environment.
- Participative = actively seeks + encourages the input + involvement of staff in
decision-making + other work-related issues.

-
-

Achievement-oriented = expects from people the highest commitment to excellence

both at a personal + an organisational level. Believes that work should be
challenging + that people will strive towards achieving these goals by assuming
responsibility.
Networking = knows how to play the political power games to acquire resources,
achieve goals + to create + maintain positive relationships.
Values-based = skilled in creating, sharing + inspiring vision + in ensuring that the
organisation + its people are guided by that vision + the values related to that vision.

Hersey et al.s Situational Leadership Model;

A leader is expected to use, the appropriate style based on the subordinates readiness +
willingness to be led by others.
Four leadership styles or roles;
- Delegating
- Participating
- Selling
- Telling
To be used according to follower readiness;
- Willing + able
- Unwilling + able
- Willing + unable
- Unwilling + unable

Postmodern Perspective;
Postmodern based the leader as servants;
- S = Servant
- E = Empowers
- R = Recounter of stories
- V = Visionary
- A = Androgynous
- N = Networker
- T = Team builder

Managing Human Resources

Key Concepts!

v Human resource management (HRM) = the process + practice of managing + advising
management on the recruitment, selection, retention + development of staff in an
increasingly complex legal + social environment with the aim of achieving the
organisations objectives as they are made sense of by its managers or consultants.
v Soft Model of HRM = humanistic approach to HRM typically soft HR managers have a
theory Y orientation, which emphasises that people are intrinsically motivated.
v Hard Model of HRM = tend to have a theory Y orientation + believe most people would
rather not be at work management monitoring + control is integral + typically
extrinsic rewards such as pay rises + bonuses are used.
v Strategic HRM = in the formulations stage; can contribute to the organisations
objectives by ensuring that all key HRM functions are consistent with the business
strategy.
v Industrial Relations = relationship between employers + employees.
v Unions = an association of wage-earning employees mobilized + organised in order to
represent their constituents interests.
v Individual Agreement = the process of individuals negotiating the terms + conditions of
their work, including pay, rewards + remuneration, etc.
v Collective Agreement = written agreement, made between the employer + employees
which sets out terms + conditions of employment.

v Affirmative Action = Policies that address insitutionalised discrimination against people

of diverse backgrounds by discrimination in favor of people perceived as belonging to
categories are disadvantaged.

Key Learning Concepts/Authors!

Hard HR considers employees are resources, soft HR advocates a responsibility for well-
being.
HR policy has a direct impact on how managers can deal with employees.
Soft HR is conductive of soft-domination (commitment, empowerment, involvement).
HR allows for an adaptation of the organisation to evolving individual needs (XY)
HR is key to instill equity in the organisation (including the respect of some ethical
criteria).

The Core Functions + Perspectives of HR:
Core functions;
- Recruitment = processes + practices used to attract suitable employees.
- Selection = tools, methods + criteria for employee selection.
- Retained Retention = practices + process used for staff retention, which often
includes
- Staff Development = processes, procedures + policies to enhance employee skills,
knowledge + capabilities in relation to their career + their job.
Employer brand;
i)
OBS
206 employees
Industry: Information Technology IT consulting
Ownership: private
ii)
NetApp Australia Pty Ltd
170 employees
Industry: Information Technology storage/data management
Ownership: Publicly quoted/held
iii)
Google Australia
571 employees
Industry: Information technology Internet Service provider
Ownership: Publicly quoted/held

Michigan Model (Hard HRM):
Taylorist roots workers distrusted, viewed as lazy, irresponsible + self-interested.
Interest of company + individual at opposites
Require tight control + monitoring
Employees = a resource, machine or means.
Motivated by extrinsic rewards (i.e. Theory X).
Role of HRM = furthering the competitive advantage of the organisation by matching
people to tasks.

Harvard Model (Soft HRM):
Human relations tradition workers seek relationships, meaning + fulfillment in
work.
Engendering commitment through empowerment, self-direction + communication.
Motivated by intrinsic rewards (i.e. Theory Y)
Emphasis matching jobs to people + provide training + development.
Role of HRM = focus on organisational performance with equal concern for employee
wellbeing.


Generational Changes in Employee Needs:
Baby boomers (1946 1964);
- Hard work, career orientation.
- Entering retirement = replacement/knowledge transfer
Generation X or Baby-Busters (1965 1980);
- Work-life balance.
- Require smart/flexible work arrangements.
Generation Y or Millenniums (1981+);
- Low interest in job security.
- Rely on family, collaborative work in groups.
- Difficulty for organisations geared towards workplace competition.
- Difficult to motivate with usual control/reward tools.

Employment Relations Levels of Agreement:
The argument for and against individual agreements versus collective agreements is a
war of political + economic ideologies about the nature of work + employment.
Individual agreement = A form of employment relations underpinned by a belief in the
market mechanism.
- Employment agreements are negotiated directly between individual employee +
employer.
Collective agreement = written agreement, made between the employer + employee
which sets out terms + conditions of employment.
- Usually made between a union
- Type of social democratic approaches to industrial relations

Managing Individuals

Key Concepts!

v Psychology = ones own thoughts + feelings. Concerning all aspects of the working mind
(such as perception, attention, thought, memory + affect at the intrapersonal +
interpersonal levels of analysis).
v Organisational Behaviour = the study of human behaviour in organisational contexts.
v Perception = the process of receiving, attending to, processing, storing + using stimuli to
understand + make sense of our world.
v Schemas = sets of cognitive constructs developed through social interactions that
organise our thoughts, feelings + attention (Baldwin, Epstein + Baucom)
v Self-fulfilling Prophecy = the process by which a person who holds belief or expectation,
irrespective of the validity of that belief of expectation, causes that prediction to come
true because people behave + act as if it is true (Merton)
v Halo Effect = the process by which if we ascribe certain characteristics to a person in one
situation based on one trait, we tend to apply those characteristics to that person in
other situations + to other traits (Thorndike)
v Devil Effect = generally ascribing negative interpretations of people based on one
negative trait in one situation.
v Fundamental Attribution Error = the tendency to make internal attributions when
explaining the causes of the behaviour of others.
v Cognitive Dissonance = the anxiety + discomfort we experience when we hold
inconsistent + conflicting sets of cognitions.
v Personality = stable patterns of behaviour + internal states of mind that help explain a
persons behavioural tendencies.

Key Learning Concepts/Authors!

Perception at Work:
Perception = process of receiving, attending to, processing, storing + using stimuli to
understand + make sense of our world.

Stimuli are experienced through any + all of the senses;

- Sight
- Sound
- Smell
- Taste
- Touch
Involves process of attention, filtering, organisation + interpretation.
Filtering (THE COCKTAIL PARTY EFFECT) = ability to focus auditory attention on a
specific stimulus while filtering out other stimuli.
- Detecting words of importance from unattended stimuli, for instances ones name in
another conversation.
Schemas = short cuts to interpret a stimulus.
- Sets of cognitive constructs developed through social interactions that organize our
thoughts, feelings + attention.
- Core in how we perceive others.

Types of Schemas:
Person schemas = the structure of meaning that affect thinking, planning + behaviour
concerning others.
Self-schemas = self-conceptions we hold about ourselves.
Script-schemas = how we operate upon our world + understand + remember
information.
Social schemas = our social knowledge about public affairs, laws, politics, media art +
anything socially important.
Role schemas = appropriate + inappropriate behaviour in specific contexts.

Common Errors in Perception:
Attribution theory = how people attribute cause to their own + other peoples
behaviours.
Self-serving bias = Success is due to internal causes + failure due to external causes.
Fundamental attribution error = using internal attributions when explaining the cause of
behaviour of others.

Schwartz (Values):
Values = a persons or social groups consistent beliefs about something in which they
have an emotional investment.
Schwartz defines values as desirable goals, varying in importance, which serves as
guiding principles in peoples lives.
We all, more or less, have the same sets of values irrespective of culture, gender +
religion.
Individual or social group values;
Consistent beliefs that serve as guiding principles
Value tensions;
Conflict between individual or group values
Value Priorities;
The order of values in terms of importance
Trans-situational values are consistent + stable across situations.
o Schwartz (1992) 10 universal values;
- Openness to change:
Stimulation
Self-direction
- Self-Transcendence:
Universalism
Benevolence
- Conservation:
Conformity
Tradition
Security

Self-enhancement:
Power
Achievement.

McCrae + Costa (Personality: Trait Theory):
Traits = mix of biological, psychological + societal influences that characterise a persons
thoughts + actions throughout their lives.
Main idea you can measure + categorize people according to their personality, traits
for traits are
Enduring
Different amongst individuals
Influence behaviour

Bandura (Socio-cognitive Theory):
Reciprocal determinism = bandura meant that our personality is a product of our
behaviour, our thoughts, + our feelings in interaction with our environment.

Freud (Psychoanalytic Theory):
Personality is typified by unconscious desires + defence mechanisms aimed at fighting
pent up sexual + aggressive drives.
- The unconscious mind (the id) = sexual + aggressive drives.
- The ego = recognises + satiates desires in ways that ensure minimum pain +
destruction
- The superego = social monitor that constantly judges thoughts + behaviours,
through the eyes of those around us.

Maslow + Rogers (Humanist Theory):
Aim = to ensure that humans fully realize personal growth + potential.
Critical of over-confidence in objectivity of trait theories
The actual self + the idealized self:
When we act in ways that is consistent with ideal self = POSITIVE self-image.
When there are gaps between ideal self + actual self = NEGATIVE self-image.
3 basic conditions that enable growth:
i)
People are genuine honest + open about own feelings
ii)
Must be accepting + value themselves + others
iii)
Have empathy

Positive Psychology: Emotions + Happiness:
Positive psychology = the study of the psychological bases for leading the best life
possible.
Method positive deviance sampling!
Positive emotions;
- Gratitude
- Kindness + comparison
- Optimism
- Meaning/purpose
- Happiness
Positive Organisational scholarship;
- Seeks to understand + foster civic virtues, social responsibility, altruism, tolerance,
happiness + psychological wellbeing within organisations.
- Tools
Strengths: values in action (VIA)
Psy cap Hope, Efficacy, Resilience, Optimism
= Reflected best self

Managing Teams + Groups

Key Concepts!

v Team = two or more people psychologically contracted together to achieve a common
organisational goal in which all individuals involved share at least some level of
responsibility + accountability for the outcome.
v Group = two or more people working towards a common goal, but there is no
psychological contract between them; the outcomes are less dependent on all the
members working together + there is usually no shared responsibility + accountability
for outcomes.
v Group Dynamics = how groups form, their structure, processes + how they function as a
unit. Relevant in both formal + informal groups of all types.
v Groupthink = tendency of members of a group to seek + maintain harmony in a group, at
the cost of ignoring or avoiding important decisions that may disrupt harmony.
v Social Loafing = colloquially known as shirking bludging, free riding or laziness. A
situation in which members of a group exert less work effort than their peers.

Key Learning Concepts/Authors!

Types of Teams:
Formal groups = groups where people have been specifically selected and are recognised
as a team in order to complete a task, innovate, solve a problem or provide a service or a
product.
- Cross-functional
- Self managed
- Project teams/task forces
Informal groups = groups that are not necessarily sanctioned or even accepted by the
organisation + its management, but which still play a significant role in organisational
outcome.
- Workmates
- Shared hobbies
- Union members
- People concerned about an organisational issue

Tuckman (Team development Stages):
Forming = a team is established to accomplish a particular task
Storming = the team experiences differences
Norming = the group develops cohesive understanding of shared roles, processes +
responsibilities
Performing = the team has developed trust, is able t address issues that arise + is highly
motivated to accomplish its task
Adjourning = the team disbands permanently or temporarily.
Group dynamics can work backwards;
Group members enter + quit
Tasks Evolve
Tasks get done partially or not done at all
Reflexivity in group work involves thinking about the effects of ones:
Roles
Assumptions
Behaviours

Social Impact + Social Facilitation:
Social Impact = the extent that social systems influence how people behave on the
strength of:
- Relational ties (trust)
- Spatio-temporal closeness (time + space)
- Group size (small vs. large)

Social Facilitation = increased performance in the presence of others:

- If task is simple
- Performer is experienced

Janis (Groupthink):
The tendency of group members to seek to maintain harmony at the cost of ignoring
important facts or decisions that disrupt harmony.
Team members reinterpret information to avoid thinking that might disrupt a strong
team culture, with the belief that the team will overcome all obstacles.
Case Study: Groupthink at NASA;
- Sense of invulnerability
- Collective rationalism
- Pressure
- Self censorship
- Illusion of unanimity

Team Conflict:
Team conflict = when group members perceive that their interests are or will be
negatively affected by the interests of others.
- Competition
- Divergences
- Conflict can be functional or dysfunctional
- Attitude to conflict

Innovation, Change + Rationality

Key Concepts!

v Innovation = creation of either a new process or a new product or service that has an
impact on the way the organisation operates.
v Platform = evolving eco-system that is created from many inter-connected pieces.

Key Learning Concepts/Authors!

Planned Change:
Bureaucracy + planned change;
Scientific management (taylorism) assumes organisations are stable + rational!
Change initiatives are therefore;
- Undesirable disruptions of stable equilibrium
- Sometimes forced by technological progress or new processes.
- Accomplished through rational plans developed, implemented + monitored by
management.
- Established to minimise future change.
Assumptions of Planned change;
Transition between two stable states unfreeze, move, freeze.
Business process re-engineering (BPR);
Radical rethinking + redesigning core activities to achieve higher efficiency +
performance (cost, quality, service + speed).
- 70% of initiatives fail.

Change as a Complex Phenomenon:
Institutional Theory of Change;
Questions why are organisations similar?
Emphasises external culture as change driver!
Certain designs + practices become widely adopted through three type of isomorphic
pressure:

- Coercive (i.e. government regulations)

- Mimetic (mimicking success)
- Normative (socially seen as positive)

Processual Change;
Constant fluidity through interactions of multiple layers of contextual variables such as;
- Political processes
- History
- Culture
- Social resources
Direction in management driven change is NOT the destination.
Often irrational
Involves unexpected events
Difficulties in managing change;
- Probability of resistance
- Organisational politics
- Unanticipated events

Chaos Theory of Change;
Speaks to change as a constant process work with the change.
Dont assumer order (cosmos) rather chaos.
Equilibrium equals death
Self organisation (order evolves as people self organise)
Complex tasks need complex solutions.
Complex organisations can be disturbed but not directed.

Stakeholders + innovation;
Market-technology linkages (conception through to implementation)
Innovation through employees + collaboration.

Managing Change + Innovation:
o BPR + Soft Domination;
o How do we overcome the disadvantages of BPR (i.e. planned change?) work on soft
domination
- Set a broad vision legitimized by the situation in the environment
- Create working groups with various hierarchical levels (empowerment).
- Describe current processes + ask for input brown paper fair
- Describe future processes white paper fair
- Follow implementation + set milestones to revise processes.
o Innovators Dilemma;
o Why successful businesses can fail when they face change + innovation:
- Sustaining technologies (more profit)
- Disruptive technologies (less profit)
o Foolish Creative killing creativity;
- Pretend you know everything
- Police employees
- Check daily progress
- Engage creative people in technical tasks
- Create organisational boundaries
- Avoid personal communication
- Argue against radical ideas not done before
- Accept some new ideas claim them as your own
o Creativity emerges from:
Playfulness
Flexible structures
o Encourage employees to devote 15% of time to personal projects!

Managing Knowledge + Learning

Key Concepts!

v Knowledge = understanding + explanations of how phenomena of interest actually work
v Knowledge management = the process of managing knowledge to meet existing + future
needs.
v Organisational Learning = the process of detection + correction of errors. The idea is that
organisations learn when the knowledge that their members have is explicitly known +
codified by the organisation (Argyris).
v Tacit Knowledge = is the knowledge you actually use when you do things but you cannot
necessarily articulate it (Nonaka).
v Explicit Knowledge = knowledge you can consciously talk about + reflect on, usually
elaborated + recorded in such a way that others can easily learn it (Nonaka).

Key Learning Concepts/Authors!

Levels of Learning:
Single-Loop learning = optimizing skills, refining abilities + acquiring knowledge
necessary to achieve resolution of a problem that requires solving.
Double-loop learning = changing the frame of reference that normally guides behaviour.
Single-loop learning is important to improve performance incrementally.
Double-loop learning questions the business an organisation is in, its culture + its
strategic vision.
In a traditional system;
- Statistical control of quality
- Quality is obtained through centralised procedures
- A standard rate is acceptable

Learning Structures:
The Learning paradox organisational learning qualifies as an oxymoron.
Driving forces behind knowledge + learning;
(i) Communities of practice = represents a social learning system that develops when
people who have a common interest in a problem, collaborate to share ideas + find
solutions.
Defined by 3 elements;
i)
Sense of joint enterprise
ii)
Relationships of mutuality
iii)
Shared repertoire
(ii) Inter-organisational collaboration = involves the process of sharing resources
including ideas, know-how, technologies + staff between two or more different
organisations in order to create a solution to a given problem.

Managing Sustainability: Ethics + CSR

Key Concepts!

v Ethics = reflecting on + recommending concepts of right + wrong behaviour.

v Corporate Social Responsibility = when an organisation seeks to meet or exceed legal +
normatively mandated standards, by considering the greater good of the widest possible
community within which it exists with regard to the environmental, social, economic,
legal, ethical + philanthropic impact of the organisations way of conducing business +
the activities it undertakes.
v Stakeholders = key individuals or groups of individuals with vested interest or stakes in
a given decision/project.
v Sustainability = ensuring that resources are renewed and ensuring that nothing
deleterious to the worlds natural systems results from processes being undertaken.

Key Learning Concepts/Authors!

Actions can be legal + unethical

Business ethics as an oxymoron
From stockholder to stakeholders theory
Triple bottom line

Law + Ethics:
Ethical + Legal A sustainable supply chain.
Legal + Unethical Subcontracting to companies who operate in countries of low social
standards.
Unethical + Illegal Corporate crime/mafias.
Illegal + Ethical Industrial actions in countries that do not respect the right to strike.

Political Origins:
Political origins = increased pressure for ethical measures that go beyond the legal
aspects.
Example; toxic chemical leak at union carbide plant in Bhopai, India 1984
- 8000 people in surrounding villages killed in one night by toxic clouds of chemicals.
- 20,000 more people have since died as a result of subsequent sickness + injury.
- Ground still contaminated, deformities still occurring, water still polluted.
- Legal penalties, + constraints, simply inadequate.

From Shareholders to Stakeholders:
Stakeholders = individuals or groups impacted by a
given decision or project.
- Employees, customers, civil society, future
generations CONSUMERS.
Some key pressures;
- State (with threats of regulation)
- NGOs
- Ethical ratings
- Investors (including institutional investors)
Shareholders theories = No more than profit
maximisation regulation by the market!
Stakeholders theory = Meet all socially desirable needs!

CSR: Corporate Social Responsibility:
Adopted as a formal policy goal by many advanced society governments + businesses.
Organisations that commit to CSR typically adopt sustainable development goals.
Principles of CSR are often translated at the individual level into codes of conducts.
Limitations of codes of conducts;
- Alienation of individual exercise of responsibility
- Contradiction of incentives
CSR in question by critical management critical management perspectives questions
whether organisations can ever be ethical!
- Profits are paramount
- CSR is instrumentalised

In order to involve CSR within companies/management involves a vast change that is
being looked into.
Concerning all aspects of the organisation;
- CSR literacy/awareness
- Critical thinking
- Building citizenship
Achieving the triple bottom line creating sustainable business models.

Managing Communications

Key Concepts!

v Communication = exchange of ideas, emotions, messages, stories + information through
different means including writing, speech, signals, objects or actions.
v Dyadic Communication = two-party communications. Can be interpersonal when two
people interact without direct personal contact as well as face-to-face + unmediated.
v Interpersonal Communication = direct interaction between two or more people.
v Intraorganisational Communication = occurs inside an organisation + typically engages
organisation members.
v Interorganisational Communication = takes place between member of different
organisations.

Key Learning Concepts/Authors!

Theories of Communication:
Communication is about transmitting a message;
- Sender (encodes) Medium (Transmission) Receiver (decodes) Medium
(feedback).
Distortion;
- Depends on media richness.
- Message comes with a meta-message
- Discourses and acts
- One cannot not communicate

Levels of Communication:
Dyadic Communication = between two individuals
- Interpersonal or impersonal
- Formal or informal
Group Communication = small group, communication + group dynamics.
- Has an impact on groupthink open or restrained communication
- Sub-groups with specific flows of communication
Mass Communication = one to many communication;
- Large anonymous heterogeneous audience
- Primarily one way communication
- Multi-channel
- Sender is usually a big organisation
Organisation behaviour perspectives on communication;
- Bureaucratic perspective
- Cultural perspective on communication
- Human relations
Organisational communication + design;
Communication flows are the real structure;
Formal flows
Informal flows
Rich communication processes have 4 functions;
i)
Informative function
ii)
Literal function
iii)
Systematic function
iv)
Figurative function

Bridging the Communication Gap:

Organisational communications audiences;
Intraorganisational/interorganisational
Targets include all relevant parties;
- Stockholders
- Employees
- The media
- Community groups
- Labour unions
- Politicians, etc.
Communication as marketing;
Kotlers five steps of optimal communication are:
i)
Identify target audience
ii)
Define communication objectives
iii)
Design the message
iv)
Select the communication channel
v)
Measure the communication processs results.
Communication as branding;
The traditional marketing vision can lead to a gap of communication between audiences;
- Create demotivation + external pressures
- A brand has a meaning for all audiences.
Branding:
- The image of an organisation
- Expressing what + who an organisation is
The expressive organisation;
A strong corporate communication integrates the strategic vision, the culture + the
external image.
Bridging the communication gap;
- Coherent identity to internal/external audiences
- Address all levels of communication
Polyphonic communication;
Polyphony = many voices + hence ideas + perspectives
- Listening democratically to voices normally silenced.

Managing Globalisation

Key Concepts!

v Globalisation = worldwide integration in virtually every sphere achieved principally
through markets, a process whereby the world becomes more interconnected + the fates
of those people + organisations in it become more intertwined.

Key Learning Concepts/Authors!

Globalisation means integration + business without frontiers

Globalisation is driven by economies of scale, scope + differences in cost
Globalisation is made possible by the development of networks, global financial system,
strategic alliances, mergers + acquisition + differences in institutions.
The poor unskilled are the victims of globalisation.

Corporate Globalisation:
Transnational or multinational organisations;
- Extend beyond national space
- Exert control through
Ownership
Coordination + control of operations

International development;
- Organic growth
- Global strategic alliances
- Mergers + acquisitions
Multinational Corporations (MNCs):
The emergence of corporations that are larger than countries;
- One of the top 200 economic entities in 1999
51% companies
49% countries
(Anderson + Cavanagh 2000:7) This growing private power has enormous economic
consequences, however, the greatest impact may be political, as corporations
transform economic clout into political power. As a result, democracy is undermined.
This threat deserve to be one of the major issues on the political agenda in the United
States + overseas.
- Decreased dependency on nation states
- A core objective = flexibility to relocate work

Why Corporate Globalisation:
Markets and demand
Economies of scale
Economies of scope
- E.g. marketing and distribution
Cost of resources
GLOBALISATION MEANS RE-LOCALISATION
Local clusters = local geographic concentrations
- Highly competitive traditional, labor-intensive industries
- Specialised (high-technology) industries
- Some services

Different Institutional Systems:
Labour-intensive industries: Cheap + disposable labour;
(Klein 2001) Wal-Mart and the Gap, for instance, contract out their production to
EPZs dotting the southern hemisphere, where goods are produced mostly by women in
their teens + twenties who earn minimum wage or less + live in cramped dorm rooms.
Those goods sweatshirts, baby clothes, toys + Walkmans are then sold by another
workforce, concentrated in the north, which is also largely filled with young people
earning approximately minimum wage, most in their teens + twenties.
Economic processing zones/export processing zones/free trade zones;
Zones legally + physically separated off from rest of country + from the gaze of the
western consumer.
Located in;
- Southern China
- Philippines
- Sri lanka
- Indonesia
- South America
- Africa
- Etc.
Estimated 27 million people in EPZ worldwide.
Temporary suspension of labour conditions, minimum wage laws, tax obligations +
health + safety regulations.
The cost of labour;
(Bakan 2004) Production of a shirt, to take one example, was broken down into
twenty-two separate operations a time was allocated to each task, with units of ten
thousandths of a second used for the breakdown. With all the unites added together, the
calculations demanded that each shirt take maximum of 6.6 minutes to make which
translates into 8 cents worth of labour for a shirt Nike sells in the united states for

$22.99 Calculation of labour costs in Nike internal document from the Dominican
republic.
Specialised Industries: Specialised labour breaking up ships in Bangladesh;
Consequences;
- Jobs, cheap disposal of ships for the ship owners, metal for Bangladeshi household
goods
- Death + disease from the poisons + heavy metal pollutants in the ships that are
dismantled with no protective equipment.

The Globalisers:
Large IT firms
Management gurus
Management consultancies
Management education
The MBA + proliferation of business schools
Management education, theory + practice
Management standards

Sustainable/Destructive Globalisation:
Global tensions;
Tension between the needs + objectives of;
- Managers of transnational corporations
- National governments
- Citizens
- Employees (in different zones)
- Human beings
Global winners + losers;
Winners:
- Multinationals
- Skilled knowledge workers
- Professions
Losers:
- Unskilled,
- Undereducated
- Poor workers