1. Class Agenda for Today 1.Class business 2.Discussion of the manager’s job 3.Introduction to the congruence model as an OB problem-solving framework

2. Course business Enrollment issuesEnrollment issues –Go to the Undergraduate Program Office (S450) Undergraduate Program Office Undergraduate Program Office Arrival, attendance, and seatingArrival, attendance, and seating Website and emailWebsite and emailWebsite –http://courses.haas.berkeley.edu/spring2004/ba105 http://courses.haas.berkeley.edu/spring2004/ba105 –Login: lincoln; password: ba105 Face cards and name tentsFace cards and name tents Class repsClass repsClass repsClass reps SyllabusSyllabus –Readings –Case analysis –Team projects

3. The general manager’s job: Session objectives 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?

4. What is the (general) manager’s job? (Kotter, 1996; Mintzberg, 1973; ) What does theory say? The Manager: “Plans, organizes, coordinates, controls” (Fayol, 1916) –Is a rational and contemplative planner –Relies on formal decision and information tools –Delegates to subordinates & goes through channels –Favors written communication –Carefully budgets his or her time

5. 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

6. What are the facts? Managers: Rely heavily on intuition in making decisionsRely heavily on intuition in making decisions Favor oral over written communicationFavor oral over written communication Spend much of their time networking and politickingSpend much of their time networking and politicking Have their hands in everythingHave their hands in everything – are the most central nodes in networks – have the broadest knowledge base Have short attention spansHave short attention spans Appear reactive rather than proactiveAppear reactive rather than proactive Is this good or bad?

7. Management is Janus-faced: Manager as engineer: trained technician who uses a professional body of knowledge to create formal systems that plot strategy, make decisions, incent people, and coordinate units in maximally efficient ways.Manager as engineer: trained technician who uses a professional body of knowledge to create formal systems that plot strategy, make decisions, incent 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.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.

8. IT and the manager’s job Folklore: IT has made organizations flatter, leaner, more flexible, more virtual, more global, less integrated, empowered people, reduced need for rigid control systemsFolklore: IT has made organizations flatter, leaner, more flexible, more virtual, more global, less integrated, empowered people, reduced need for rigid control systems Fact: The effects of IT have been complex & contradictory. It has also disempowered employees by intensifying surveillance, increased written communication and some forms of standardization, created information overloads and shortened attention spansFact: The effects of IT have been complex & contradictory. It has also disempowered employees by intensifying surveillance, increased written communication and some forms of standardization, created information overloads and shortened attention spans

9. 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.

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

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

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

13. Essentially 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. Strategy (diversification; innovation) Input Environment (Competition, change) Resources (munificence) History (age, conditions at founding) Output Systems Unit Individual Informal Organization (culture, leadership, networks, politics) Tasks ( technologies, work flows) People (ability, skills, motivation, biases) Formal Organization (job titles, departments, reporting hierarchy, IT & HR systems The Congruence Model

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

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

16. 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

17. 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.

18. 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.

19. Performance Desired Organizational Architecture Today’s Actual Architecture Brick Wall of Resistance Informal Organization People Formal Organization Tasks Informal Organization People Formal Organization Tasks Taking Action

20. Next week –Strategic organization design Tuesday –Read Ancona Thursday –Read case: “Allentown Materials”