MGT5557: Structural and Human Resource Frames Fall, 2010

Agenda Frames and Reframing Structural Frame: Introduction Campbell & Bailyns Boston Office Human Resource Frame: introduction Mens Wearhouse

Next class: Leadership in Action Organization simulation: observe and practice leadership under challenging conditions Pay to play: bring $10 cash for simulation working capital Your $10 investment will be in play and at risk in the simulation

Where Weve Been Theories for action: espoused theory vs. theory-in-use Ladder of inference – data vs. inference and interpretation Framing is a form of inference, an interpretive process Organization structure Structure needs to align with task, technology, environment Differentiation and integration as core issues in structure

What is a frame? "Frames are principles of selection, emphasis and presentation composed of little tacit theories about what exists, what happens, and what matters. (Todd Gitlin) Window: An aperture that influences what you see and notice, and how you interpret it What you see and how you understand your situation depend on the window you use

Frame as window

What is a frame? Window: A window on the world that influences what you see and how you interpret it Tool: an implement for performing tasks Important to have right tool for job Skill matters: having a tool isnt the same as knowing how to use it

What is a frame? Window: Tool: an implement for performing tasks Perspective: a set of related ideas, a story-line, that gives order and meaning to disparate bits of data

Framing To frame is to select some aspects of a perceived reality and make them more salient…in such a way as to promote a particular problem definition, causal interpretation, moral evaluation, and/or treatment recommendation. (Robert Entman) Is automatic and usually tacit We frame to make sense -- when we encounter new information or situations, we use our experience and knowledge to develop a frame that resolves ambiguity and creates meaning Example: The City

True, False or Dont Know? 1.A man appeared after the owner had turned off his store lights. 2.The robber spoke with a strong accent. 3.It was summer when this incident occurred. 4.The man who opened the cash register was the owner. 5.The man who demanded money scooped up the contents of the cash register and ran away. 6.A businessman had just turned off the lights when a man who spoke with a strong accent appeared in the store.

True, False or Dont Know? 7.Money from the cash register was scooped up by someone. 8.The details of this event were promptly reported to a policeman. 9.The owner scooped up the contents of the cash register and sped away. 10.The following events occurred: someone demanded money; a cash register was opened; its contents were scooped up; and the man dashed out of the store.

Framing Is automatic We frame to make sense -- when we encounter new information or situations, we use our experience and knowledge to develop a frame that resolves ambiguity and creates meaning When framing fails, we have trouble making sense (example on next slide)

Ли Болмэн Лидерство и Стратегия

Ли Болмэн Li Bolmen Лидерство и Стратегия Liderstvo i Strategia

A Structural View Metaphor: complex machine Leader: analyst, architect Strategy: do your homework, analyze, design new approach, implement Focus: data, logic, structure, plans, policies

Alfred P. Sloan at General Motors Appointed CEO 1923 In first year, GMs share dropped from 20 to 17%; Fords increased to 55% GM passed Ford 5 years later Structure Sloan inherited: feudal baronies One option: functional organization

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Alfred P. Sloan at General Motors Appointed CEO 1923 In first year, GMs share dropped from 20 to 17%; Fords increased to 55% GM passed Ford 5 years later Structure Sloan inherited: feudal barony One option: functional organization Structure he built: product divisions with strong central staff

Two central issues in structuring: Differentiation: How to divide up the work (roles, units, etc.) Integration: how to coordinate and tie things together once theyre divided up

Options for dividing the work:

Integration: pulling it together Formal vs. informal Vertical Authority Policies, procedures, rules Systems (accounting, I.T.,etc.) Incentives Lateral Committees, teams, task forces Coordinating roles Networking

Structural Configuration Mintzbergs Fives Strategic apex Middle management Operating core Techno structure Support staff

Why cases? Virtual tour: learn from immersion in different issues and contexts Application of theory to practice Goal is not right answer but learn ideas and concepts that let you think better about issues and challenges that cut across this case and Diagnostic skills: increase ability to size up situations and answer two key questions: whats happening, and what needs to be done? Test your ideas against others ideas

Team Discussion Questions: Whats changing in the industry thats affecting C&B? What were the strengths and weaknesses of the old organization? What are the strengths and weaknesses of the new organization? Whats up with the change in performance appraisal?

Why Restructure? The environment shifts Technology changes Organizations grow Leadership changes Troubled firms Impulsive firms Stagnant bureaucracies Headless giants

Campbell & Bailyns Boston Office: the context Whats changing in the industry thats affecting C&B?

Campbell & Bailyns Boston Office: the context Whats changing in the industry thats affecting C&B? Declining margins of traditional products (commoditization) More specialized and complex products More sophisticated customers Shift in power balance from generalists to specialists Customers need more expert advice on esoteric products

Campbell & Bailyns Boston Office:the old organization What were the strengths and weaknesses of the old organization?

Campbell & Bailyns Boston Office:the new organization What are the strengths and weaknesses of the new organization?

Campbell & Bailyns Boston Office:the new organization Is KAT an improvement?

Campbell & Bailyns Boston Office:the new organization What changed in terms of performance appraisal?

Mintzbergs Structural Configurations Simple Structure Machine Bureaucracy Professional Bureaucracy Divisionalized Form Adhocracy

Mintzbergs Structural Configurations Simple Structure Machine Bureaucracy Professional Bureaucracy Divisionalized Form Adhocracy

Mintzbergs Structural Configurations Simple Structure Machine Bureaucracy Professional Bureaucracy Divisionalized Form Adhocracy

Mintzbergs Structural Configurations Simple Structure Machine Bureaucracy Professional Bureaucracy Divisionalized Form Adhocracy

Mintzbergs Structural Configurations Simple Structure Machine Bureaucracy Professional Bureaucracy Divisionalized Form Adhocracy

Generic Issues in Restructuring: each component exerts distinct pressures Strategic apex: pushes for more alignment, centralization Middle managers try to protect autonomy and room to run their own unit Techno structure pushes for standardization, promotes measurement and monitoring Support staff prefers less hierarchy, more collaboration

Structural wrap-up How would you describe Ken Winstons management approach? How well has he led the changes? Should he do anything different? What do we learn about structure and structural change?

A Human Resource View Metaphor: Extended family Leader: servant, catalyst Change strategy: build relationships, listen, educate, be open, empower others Focus: skills, attitudes, teamwork, communications

Mens Wearhouse

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Mens Wearhouse What are the central concepts and assumptions of the human resource perspective? How has Mens Wearhouse been so successful in a competitive, declining industry?

HR Practices Develop and implement HRM strategy Hire the right people Keep them Invest in them Empower them Promote diversity

Investing in people Would similar practices work in other industries, or is there something special about retailing? Would these practices work in your workplace?

Mens Wearhouse:Update As of January, 2010, 1259 stores 581 Mens Wearhouse 458 Mens Wearhouse & Tux 117 Moores (Canada) 107 K&G (discount chain) Financials 2007: $2.1 billion sales, $147 million net 2009: $1.9 billion sales, $46 million net