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Strategic Management Model Labor/Union Management Relations Phase I Phase II Legislation Executive-Administrative x DISPUTE SETTLEMENT Strike/Lockout Fact Finding (Cooling Off) Conciliation Mediation Initiative CONTRACT Law of the Land (5 Major Sections) Phase IIA Judicial Protest—Appeal DISPUTE SETTLEMENT Strike/Lockout Arbitration The Anatomy of A Union Management Contract Most Union Contract Consist of: An agreement structure The status and rights of the union and management Amount and method of compensation Control of job opportunities Work speeds, methods and conditions MIDI Case One: An Abbreviated, Personal Business Plan Approximately 5 pages in length Individually written case analysis Must include: Your mission for the future of the organization Your future objectives for the organization Your analysis and quantitative forecast of industry and company Your strategic decisions (i.e., actions, with results) to accomplish objectives A 3 year pro forma income statement Your participation in class discussion and case debrief A Few Notes about The Organization The organization primarily values people who: HR: Are assertive and directive TB: Are people oriented CG: Have creative activity DG: Have precision and continuity The organization primarily values people who: DG: Are concerned with procedures HR: Are strong and ambitious TB: Are mutually supportive and have friendly interpersonal relationships CG: Respect autonomy and integrity of others, and require respect from colleagues and managers More about The Organization The organization is characterized as: TB: DG: HR: CG: Being concerned with interpersonal processes Being bureaucratic A dictatorship Having a lack of controls The organization: CG: Feels that employees can be trusted to do what they should do without someone checking up on them HR: Has two different standards for employees—what they achieve and how well orders are followed TB: Feels that decisions should not be made by individuals, but by groups DG: Let’s you know that if you just follow the book, you will not be fired More about The Organization The people in the organization: TB: Feel promotions should go to people who get along and understand our way of doing things CG: Are free to determine their own goals and how to reach them HR: Believe that the boss should tell employees what their goals are DG: Feel promotions should be based upon seniority, compliance with procedures and budget management The organization is primarily made up of: TB: Employees who are concerned with the group’s assessment of the quality of the interpersonal process DG: Employees who feel the organization is run on the basis of rules HR: Employees who believe it is their task to listen to the boss and obey thoroughly CG: People who like to do their own thing without having to depend on others More about The Organization The people in the organization value: HR: DG: TB: CG: Opportunity Security Consideration Independence The organization is characterized as: TB: DG: HR: CG: Existing in a secure marketplace Established and traditional Market driven Entrepreneurial Part B: Ideal Organization 1 2 Culture Test 3 4 5 6 7 8 Interpreting the Culture Test Cool Green Hot Red True Blue Dull Gray Respects autonomy & integrity of others and requires the same from others Strong and ambitious Mutually supportive, friendly interpersonal relationships Concerned with procedures Lack of controls Dictatorship Interpersonal Process Bureaucratic Employees can be trusted to do what they should without oversight 2 Standards: what they achieve; how well orders are followed Decisions should be made by groups, not individuals Just follow the book and you won’t be fired People like to do their own thing without depending on others Employee’s task is to listen to the boss an obey thoroughly Concerned with group’s assessment re: quality of interpersonal process Organization run on the basis of rules Characterized by creative activity Assertive and Directive People Oriented Precision and Continuity Determine personal goals and action plans Boss sets the goals Promotions based on “getting along” and understanding “our way” of doing things Seniority, compliance with procedures, budget management Entrepreneurial Market Driven Secure Marketplace Established, Traditional Independence Opportunity Consideration Secure More about Cool Green People and Orgs. Cool Green Individuals Motivated by autonomy Typically competent and self directed Cool Green Organizations Built on foundation of mutual respect for autonomy/integrity Characterized by Creative Activity Careful personnel selection required Difficulty in attracting/retaining necessary administrative and bureaucratic staff Cool Green Illustrated Research companies/divisions, professional companies (law firms), universities More about Hot Red People and Orgs. Hot Red Individuals Assertive and directive Want subordinates that obey / superiors that model and mentor If you can’t lead or follow, get out of the way Hot Red Organizations Usually very productive as small organizations Larger organization’s employees are faced with conflicting goals of being evaluated by accomplishment and following orders As Hot Red organizations grow, they often become Dull Grey Hot Red Illustrated Entrepreneurial companies, small companies or divisions in competitive markets such as finance or sales More about True Blue People and Orgs. True Blue Individuals Are people oriented and want mutually supportive and friendly interpersonal relationships Get along well with people who need and are concerned about them Difficulty dealing with competitive, ambitions and detached people People who fit this culture will stay a lifetime and accept poor wages True Blue Organizations Concerned with group’s assessment of the quality of the interpersonal process over objective accomplishments Believe in group decision making--few decisions actually made Can only exist in a company serving a stable and secure market True Blue Illustrated Mom and Pop companies (restaurants) or autonomous service dept’s within larger orgs (mail rooms, or maintenance dept.s) usually with guaranteed work and little perceived competition Country Clusters Hofstede’s Four Dimensions of National Culture L O W H I G H Far East Latin Near East Nordic Nordic Anglo Near East Far East Far East Latin Nordic Anglo Individualism Anglo Power distance Nordic Anglo Latin Near East Uncertainty Avoidance Anglo Masculinity Long Term Orientation Far East Coping with Differences in National Cultures Power-Distance (PD) The degree to which people in a country accept a hierarchical or unequal distribution of power in organizations. For example, Indonesia is considered a high powerdistance culture, whereas the Netherlands is considered a relatively low power-distance culture. High PD cultures—Status is important Low PD cultures—expect closer relationships between superiors and subordinates Coping with Differences in National Cultures--more Uncertainty-Avoidance (UA) The degree to which people in a country prefer structured versus unstructured situations. For example, France is considered a high uncertainty avoidance culture, whereas Hong Kong is considered low uncertainty avoidance culture. High UA cultures—structure is important Low UA—less emphasis on structure/security, tendency to let time “have its way” Coping with Differences in National Cultures Individualism-Collectivism (IC) The degree to which people in a country focus more on working as individuals versus working together in groups. For example, Germany is considered a relatively highly individualistic culture, whereas Sweden is considered a more highly collectivist culture. High IC cultures—individual comes first; more emphasis on the “group”; think and behave in “we” terms Coping with Differences in National Cultures, more… Masculinity-Femininity The degree to which people in a country emphasize so-called masculine traits, such as assertiveness, independence, and insensitivity to feelings, as dominant values. For example, Japan is considered a highly masculine culture, whereas the Netherlands is considered a more feminine culture. High masculinity cultures—independence is valued High femininity cultures—emphasis on interdependence; gender equality; quality of life; interpersonal relations; respect for “beautiful things” Coping with Differences in National Cultures, more… Long-term—Short-term Orientation The degree to which people in a country emphasize values associated with the future, such as thrift and persistence, verses values that focus on the past or present, such as social obligations and tradition. China is high on long-term orientation, while the US is more short-term High long-term cultures—traditions, age, relationships are respected Low short-term cultures—less respect for age; more willingness to express criticism; more emphasis on formal written contracts Management Action Agenda WHAT WHERE WHEN HOW WHY WHO - CHANGE EVERYWHERE NOW PROJECT TEAMS BOTTOM LINE EVERYONE The Basic Process of Managing by Objectives Set Objectives Identify & state predicted results Prioritize objectives Establish review points Establish $’s, Criteria for Measurement %’s, #’s Basic Process Cont’d Establish Plans What’s to be done Who’s to do it When it’s to be done How it’s to be done Performing Organizing resources & Enacting plan Basic Process Cont’s Measure Compare progress to plan as required & prior to review Review Compare results to planned objectives Communicate evaluation of results Renew cycle in part or total Basic Process Cont’d Review Recognize Competition Modify Objectives Delete Objectives Add Objectives