UGBA 105 Sections 102, 104, 106 Week 2: The Manager’s Job

Agenda 1. Where we’ve been/where we’re going 2. “Manager of the Year” 3. What managers do 4. The congruence model & org analysis 5. Review & Next Week

1. Where we’ve been The week in review What is OB anyway – and why you should care What is OB anyway – and why you should care Course overview (requirements, outline) Course overview (requirements, outline) Section expectations/guidelines Section expectations/guidelines Preparing a case Preparing a case Any questions? Any questions?

1. Where we’re going Goals for today Define the role of the manager Define the role of the manager Understand the congruence model of organizational analysis Understand the congruence model of organizational analysis

2. Manager of the Year Who would you nominate for manager of the year? Who would you nominate for manager of the year? –Give at least 2 reasons Discuss these individuals in groups of 2-3 Discuss these individuals in groups of 2-3 Be ready to justify your nomination Be ready to justify your nomination

3. What managers do

Management is Janus-faced: Janus Manager as engineer: Trained technician who uses a professional body of knowledge to create formal systems that plot strategy, make decisions, provide incentives to people, and coordinate units in maximally efficient ways Manager as leader: Individual who leverages highly personal resources (energy, stamina, charisma, vision, warmth, charm, gregariousness, toughness, daring, know-how) to inspire, empower, and channel the actions of others Janus: The Roman God of doorways

The historical thrust of management science and education has been to: Develop formal systems and tools that relieve managers of the personal work of leading

Which is it? EngineerLeader

What would Kotter say?

A third model: congruence Both the formal and the informal/people sides of organization are essential for long run success. It is the manager’s job to align them with the tasks and strategy of the organization and the demands of the environment. Both the formal and the informal/people sides of organization are essential for long run success. It is the manager’s job to align them with the tasks and strategy of the organization and the demands of the environment.

4. The congruence model & org analysis

Problem-solving & organizational analysis Four stages/components 1Problem/situation assessment 2Analysis 3Possible courses of action; pros & cons of each alternative 4Final recommendation/implementation plan

Identifying the problem What is wrong here? What’s the problem? What type of performance gap is the organization experiencing? What is wrong here? What’s the problem? What type of performance gap is the organization experiencing? or (less frequently) or (less frequently) What is right here? What strengths can be leveraged? Is the success sustainable? What is right here? What strengths can be leveraged? Is the success sustainable?

A Problem… Goal Outcome Desired: - market position - technology - profitability/share price -skills -productivity -teamwork Actual: - market position - technology - profitability/share price -skills -productivity -teamwork is a gap between goals and outcomes

All problems involve one or more disconnects, or incongruencies, between 4 major components of organizations: In turn, solutions involve the analytic - and creative - achievement of congruence. Input Environment (Competition, change) Resources (munificence) History (age, conditions at founding) Output Systems Unit Individual Informal Org (culture, politics leadership, networks) Tasks (technologies, work flows) People (ability, skills, motivation, biases) Formal Org (job titles, depts, reporting hierarchy, IT & HR systems) The Congruence Model Strategy (diversification innovation)

Principal OB Levers Managers can solve problems by changing the organization in the following ways: Managers can solve problems by changing the organization in the following ways: –Tasks or work –Formal organization –Informal organization –People

But not in isolation Must pay attention to core tasks, goals, strategy and environment Must pay attention to core tasks, goals, strategy and environment Thus, the congruence or “fit” hypothesis: Thus, the congruence or “fit” hypothesis: The degree to which the strategy, work, people, structure, and culture are smoothly aligned will determine the organization’s ability to compete and succeed. The degree to which the strategy, work, people, structure, and culture are smoothly aligned will determine the organization’s ability to compete and succeed.

Getting Past Symptoms: Discerning Root Causes What are the fundamental causes of the performance gap? Gap Why? We’re not getting new product out Lack of coordination devices Inter-unit conflict Conflicting reward schemes

Solutions Definition: a solution to a problem (a performance gap) is a change to the organization that removes one or more causes of the problem without creating new and larger/more serious problems. Definition: a solution to a problem (a performance gap) is a change to the organization that removes one or more causes of the problem without creating new and larger/more serious problems.

Solutions STRATEGIC GOAL STRATEGIC OUTCOMES WORK PEOPLE FORMAL ORGANIZATION INFORMAL ORGANIZATION CAUSES we have the wrong people to do the work? SOLUTIONS Get or train new people. CAUSES Do we have the wrong organizational structure to do the work? SOLUTIONS Change the structure: new groupings, linkages. CAUSES Do we have the wrong corporate culture to do the work? Are effective communication networks missing? Bad office politics? SOLUTIONS Change the culture; reduce conflict & politics.

Which Is It? EngineerLeader

5. By way of review … What is the manager’s job? What is the manager’s job? How do the observed activities of general managers square with received theories of management? How do the observed activities of general managers square with received theories of management? How should managers balance their different roles? How should managers balance their different roles?

5. Wrap-up/Next week Did everyone sign in? Did everyone sign in? Class rep Class rep Prep the Allentown case (I really mean it this time!) Prep the Allentown case (I really mean it this time!)