The Enterprise Organization

The New Venture Team Organizational Design Leadership Teams Management Emotional Intelligence Organizational Culture Social Capital Attract & Retain Talent Ownership / Stock Options Board of Directors

Organizational Design

Traditional Forms Functional

Finance, Design, Personnel, Engineering, . . . Geographic

Pacific Command, . . . Product

Skylark, Regal, LeSabre, . . . Customer

Lockheed - Defense, Commercial Process

Sting

Fabrication

Assembly Inspection

Functional FormBig Cheese

GruntGrunt Grunt

SDSM&T StructureBOR

President

VP of Students

VP of Finance

VP Academic Affairs

Chem, Physical& Mater. Sci

ITS

ASC

EarthSystems

Chem E.

MET

Physics

Civil E.

Geol E.

MinE

Meteo

Inter -Disciplinary

Systems Eng.

EE

ME/IE

Math/CSC

HUM

Mil Sc

Soc Sci

VPPublic Rel

Matrix Organization Top Management

Accounting Engineering Manufactur. Procurement

Projec t One

Project Two

Task A

Task B

Task C

Task D

Task E

Matrix Organizations Disadvantages

difficult to implement workers used to vertical information processing

whereas matrix requires horizontal processing and decentralization of decision making

matrix induces conflicts

Johnson & Johnson 1982 - 7 Chicago residents died from

cyanide laced Tylenol Managers overrode FDA & recalled at cost

of $100 million 3 months, 93% felt J&J had done a good job J&J rated #1 in Fortune’s 300 most admired

U.S. corporations

A. H. Robins Manufacturers kept Dalkon Shield on

market after product difficulties discovered 9,000 claims involving serious injury Robins eventually filed for bankruptcy

Statistics National poll - 58% rated ethical standards of

business executives as fair or poor Time - 76% saw lack of ethics in business as

contributing to tumbling moral standards Street crime costs U.S. $4 billion per year White collar crime costs U.S. $40 billion per

year

Organizational Culture

CEO

Senior Mgmt

Middle Mgmt

Line Workers

Line Workers

Middle Mgmt

Senior Mgmt

CEO

Organizational Culture

Flexibility Stability Needs of the Environment

External

Strategic Focus

Internal

AdaptabilityCulture

Mission Culture

Clan Culture

BureaucraticCulture

Organizational Culture Adaptability Culture

Focus on external environment and change to meet customer needs

3M – individual initiative and entrepreneurship

Organizational Culture Mission Culture

Concerned with serving customers in a specific market but without the need for rapid change

Harley Davidson

Organizational Culture Clan Culture

Focus on involvement and participation of the organization’s members

Needs of employees is the best route to productivity

Ben & Jerry’s , SDSM&T

Organizational Culture Bureaucratic Culture

Internal focus and a consistency orientation for a stable environment

symbols, heroes, ceremonies

Marine Corps, SDSM&T

Organizational Culture Cultural Strength

the degree of agreement among an organizations members on the importance of specific values

Subcultures

Learning Organizations Strong adaptive culture

the whole is more important than the parts

equality and trust are primary values

culture encourages risk taking, change and improvement

Social Responsibilities Economic responsibilities Legal responsibilities Ethical responsibilities Discretionary responsibilities

Vanguard Companies try to satisfy all stakeholders are committed to a higher purpose value continuous learning aim high

Atlantic Richfield, Dayton Hudson, John Deere, Honeywell, Levi Strauss, Motorola, Weyerhaeuser

James O’Toole, Vanguard Management: Redesigning the Corporate Future, 1986.

Exercise

Individually please take 2 minutes to provide a written answer to the following question

What is your definition of a team?

Exercise

AS A TEAM please take 4 minutes to provide a written response to the following:

Combine elements from everyone’s individual definition of “What is a Team” to form a new one. You MAY NOT simply pick one person’s individual answer.

One DefinitionTEAM: 1.a. Two or more draft animals harnessed to a vehicle or from

implement, b. A vehicle along with the animal or animals harnessed to it. 2. A group of animals exhibited or performing together. 3. A group of players on the same side in a game. 4. Any group organized to work together.

A team is a small group of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves accountable.

Caterpillar Empowermid

Empowered

Team ManagementJoint

Learn from mistakes

Take risks

Accept responsibility

Seekinformation

Master training

Learn values

Forgive mistakes

Encourage risks

Give authority

Provideinformation

Provide training

Define values/ boundaries

Measureeffectiveness

Evaluateboundaries

Determine trng needs

Communication & feedback

Common Team Problems(Student’s Perspective)

One of my teammates never comes to class. One of my teammates never participates. No one comes to our meeting prepared to

work. I have to shoulder most of the workload to

get a decent grade. Some of my teammates just want to rush to

accomplishment.

Common Team Problems(Industrial)

Internal conflict

Coalitions; us vs them

Member anxiety and frustration

Time wasted on irrelevant issues

Haphazard decisions by senior people

Lack of Communication

Management ResponsibilitiesManagement Responsibilities

Team ResponsibilitiesTeam Responsibilities

Problem IdentificationProblem Identification

Breakdown in CommunicationsBreakdown in Communications

As Proposed by the Project SponsorAs Proposed by the Project Sponsor

Code of Cooperation The agreed upon rules governing the

behavior of team members as well as any appropriate rewards and sanctions. Sets norm for acceptable behavior Developed, adopted, improved, and/or modified

by all team members Easily accessible to team members

Exercise Individually, based on your experiences in

working with groups, write down 2 elements you would like to see in your team’s Code of Cooperation?

Exercise AS A TEAM use 8 minutes to provide a

handwritten document after you take the following action: Discuss your individual code of cooperation

elements Come to an agreement as to the ones everyone

would like to include in a draft Code of Cooperation

Add 3 new elements

Stages of Development Orientation (Forming)

catalyst that causes people to form group exchange theory - reciprocal payoffs

Dissatisfaction (Storming) individuals express personal expectations of group

Resolution (Norming) consensus on goals, roles, & expectations of group

Production (Performing) group begins task it was created to perform

Stages of Development Adjourning

recognize task is complete & group is to disband

Recycling sometimes we just gotta start over

Group Development GraphProduction Resolution Dissastisfaction Orientation

Low

High

28 24 22 20 18 16 14 12 10 7

Morale (Commitment)

Productivity (Competence)

Situational Leadership

Production Resolution Dissastisfaction Orientation

Low

High

28 24 22 20 18 16 14 12 10 7

Morale (Commitment)

Productivity (Competence)

Low Task Behavior High

Rela

tionsh

ip B

ehav.

High

Team CharacteristicsEffective Teams High Commitment Innovative/Creative Professional objectives

consistent with project Members highly

interdependent Conflict resolution Communication High trust levels High energy levels High morale

Ineffective Teams Low Commitment Unclear project objectives Gamemanship, manipu-

lation, hidden agendas Conflict avoidance Subtle Sabotage Cliques, collusion Lethargy

Effective Teamwork Includes The use of roles Development of a Code of Cooperation Check for understanding Development of effective listening skills Give and take effective constructive feedback Use of agendas for team meetings Use of action list Group Processing for continuous improvement Commitment from all team members

Team Management MatrixTask Social

Outcomes

Process

Goals Climate(cohesion)

Roles & Activities

Interpersonal behavior

Team Management Matrix

Specific Challenging Anxiety-Performance Curve

Task Social

Outcomes

Process

Goals Climate(cohesion)

Roles & Activities

Interpersonal behavior

Team Management Matrix

Coordinated Paired Interactions Solo Effect

individual talents get socialized out as members conform to group norms

Task Social

Outcomes

Process

Goals Climate(cohesion)

Roles & Activities

Interpersonal behavior

Team Management Matrix

Group Cohesion intent to remain commitment to activities quality of interactions

Task Social

Outcomes

Process

Goals Climate(cohesion)

Roles & Activities

Interpersonal behavior

Cohesion

Group Think The Bay of Pigs Pearl Harbor Vietnam War Challenger Explosion FBI raid on Davidian Compound

negativesocial loafing

moderate highgroup think

0dysfunctional dysfunctional

Symptoms of Group Think Illusions of Invulnerability Assumed Unanimity Self Righteousness Se;f-Suppression of Dissent Mind Guards Direct Pressure Rationalization

What is a Leader? Manager?

Emotional Intelligence The bundle of four psychological

capabilities that leaders (individuals) exhibit Self-awareness Self-management Social awareness Relationship management

High Emotional Intelligence People with high EI tend to

Behave authentically Think optimistically Express emotions effectively Respond flexibly in relationship styles

Tend to move from management to leadership

Performance Based Culture Inspires everyone to do their best Rewards achievement and pay-for-

performance, keep raising the bar Create work environment that is

challenging, rewarding, and fun Establish, communicate, and stick to clear

values

Social Capital Resources available in and through personal

and organizational networks Three dimensions

Structural – overall pattern of relationships

Relational – relation of connections between individuals

Cognitive – extent to which employees within a network share a common perspective

How Do We Attract & Retain Talent?

Ownership Compensation includes wages, benefits, incentives,

ownership Stock options

Employees can purchase shares at a later date for a fixed price Starbucks employees own bean stock Microsoft created over 20 millionaires during first 20 years

through stock options

Restricted stock Stock issued in an employees name and reserved for his or her

purchase at a later date

Board of Directors Legally constituted group with the

responsibility to represent stockholders Goals for effective board process

Engage in constructive conflict Avoid destructive conflict Work together as a team Avoid micromanagement Address decisions comprehnesively