Managing People in Global Economy (Chapter 1) kinicki & kreitner, 2008, defines management as “the process of working with and through others to achieve organizational objectives in an efficient and ethical manner. ” Management comprises: Planning, organizing, resourcing, leading/directing/motivating, and controlling.
1. Planning is decision making concerning what needs to happen in the future and generating plans for action. In other words planning is the organizational process of creating and maintaining a plan; and the psychological process of thinking about the activities required to create a desired future on some scale. . Organizing is the act of rearranging elements following one or more rules.
Elements refer to the simplest or essential parts or principles of which anything consists, or upon which the constitution or fundamental powers of anything are based. 3. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources. 4. Leading/directing/motivating the art of getting others to play an effective part in achieving plans, i. e.
making individual work willingly in the organization. 5.Controlling an organization or effort put into the purpose of accomplishing a goal. http://en. wikipedia. org/wiki/Management#Historical_development According to Jeffrey Pfeffer, substantial and rapidly expanding body of evidence exists that suggests strong connection between how firms manage their people and the economic results achieved.
Through a review of research from United States and Germany, Pfeffer found that people-centered practices are strongly associated with higher profits and lower employee turnover. Therefore, organizational success depends on good human resource management.Successful companies/organizations are known to use Pfeffer’s seven people-centered practices: 1. Job security (to eliminate fear of layoffs). 2.
Careful hiring (emphasizing a good fit with the company culture) 3. Power to the people (via decentralization and self-managed teams) 4. Generous pay for performance 5. Lots of training 6.
Less emphasis on status (to build a “we” feeling) 7. Trust building (through the sharing of critical information) McGregor’s Theory X and Y assumptions about employees: According to traditional thinking, Theory X employees dislike work, require close supervision, they are interested in security primarily.But the modern view of Theory Y, see employees as capable of self direction, seeking responsibility, and creative. Total Quality Management (TQM) is continuous customer centered employee-driven improvement.
This means constant customer satisfaction attainment through an integrated system of tools, techniques and training. TQM has four principles: 1. Do it right the first time to eliminate costly rework 2. Listen to and learn from customers and employees 3. Make continuous improvement an everyday matter 4. Build teamwork, trust, and mutual respectThe 85-15 rule by Deming sums up the managerial significance of TQM.
According to Deming, about 85% of organizational failures stem from system breakdowns where such factors as work rules, management and machinery are involved. Only about 15% of the time, Deming believed that employees/workers themselves are responsible for failures. Organizational Behavior (OB) has three general new directions: 1. Human capital, which is the productive potential of an individual’s knowledge and actions that involves individual characteristic and abilities.
2.Social capital, which is productive potential resulting from strong relationships, goodwill, trust, and cooperative effort that involves social relationships. 3. Positive organizational behavior (POB) derived from positive psychology movement. When building Human Capital, five measurable outcomes of programs are identified: 1. Leadership/managerial practices: This is the ability of the leader or manager to optimize the human capital of the organization through communication, performance feed back, efforts to instill confidence, and demonstration of key organizational values.
2.Workforce optimization: The ability of the organization to successfully optimize its workforce performance by means of developing and sustaining talents in terms of skills, competencies, abilities, in addition to managing and guiding its application on the job. 3. Learning capacity: The overall ability of the organization to learn, change and improve continually. 4.
Knowledge accessibility: The extent of collaborativeness of the organization and its current efforts and ability to share ideas and knowledge across the board. 5. Talent engagement: The ability of the organization to engage, retain, and optimize the value of it talent.Social capital in organizations is now rare and endangered. Building social capital will allow organizations to capitalize on the volatile, virtual possibilities of today’s business environment that encourages corporate social responsibilities and business ethics. The main focus of discussion in OB relate directly or indirectly to building human and social capital through managing diversity, self-efficacy, self-management, emotional intelligence, goal setting, group problem-solving, group development, building trust, teamwork, managing conflict, communicating, empowerment, leadership, organizational learning and positive reinforcement.
The Positive Psychology Movement is the approach recommending focus on human strengths and potentials as a way to possibly prevent mental and behavioral problems to improve the general quality of life. The subjective, individual and group level are the three levels of positive psychology. The subjective level is about valued subjective experiences such as well-being, contentment, and satisfaction in the past; hope and optimism for the future; and flow and happiness in the present.The individual level is about positive individual traits such as the capacity for love and vocation, courage, interpersonal skill, aesthetic sensibility, perseverance, forgiveness, originality, future mindedness, spirituality high talent and wisdom. The group level is about the civic virtues and the institutions that propel individuals toward better citizenship; responsibility nurturance, altruism, civility moderation, tolerance, and work ethic.During the last half of 20th century, the field of psychology took a distinct negative turn with preoccupation of theory and research with mental and behavioral pathologies.
By the 21st century, Abraham Maslow and Carl Rogers advocated alternative perspective, labeled positive psychology. The Impact of Positive Psychology Movement on the field of OB The psychology’s long-standing preoccupation with pathologies, that is, what was wrong with people, was reversed with positive psychology that focuses on identifying and building human strengths and potential.This movement impacted the emergence of positive organizational behavior (POB) which is “the study and application of positively oriented human resource strengths and psychological capacities that can be measured, developed, and effectively managed for performance improvement in today’s workplace. ” There are five basic elements with acronym created by Fred Luthans, referred to as Luthans’ CHOSE Model of key POB dimensions: 1.
Confidence/Self-efficacy: One’s belief in being able to successfully execute a specific task in a given context. . Hope: One who sets goals, figures out how to achieve them (identify pathways) and is self-motivated to accomplish them, that is, willpower and “waypower. ” 3. Optimism: Positive outcome expectancy and/or a positive casual attribution, but is still emotional and linked with happiness, perseverance, and success.
4. Subjective well-being: Beyond happiness emotion, how people cognitively process and evaluate their lives, the satisfaction with their lives. 5.Emotional intelligence: Capacity for recognizing and managing one’s own and others’ emotions—self-awareness, self-motivation, being empathetic, and having social skills.
E-business is using the Internet to facilitate the effective and efficient management of every aspect of a business. E-business is different from e-commerce which is buying and selling of goods and services over the Internet. E-leadership is important in a virtual organization that relies on the Internet for the success of its e-business. There are five useful lessons learned by the virtual CEO of Applegate Farms about e-leadership: 1.Visibility: provide managers with access to essential and accurate performance data and arrange periodic meetings to discuss key business data 2.
Replication: Instill core operating principles based on data during hiring and training 3. Consciousness: Post issues online in public forum to prevent buildup of stress in the system 4. Weekly meetings: Arrange weekly management meetings to prevent micromanagement as well as foster day-to-day self-reliance 5. Park the ego: Concentrate on looking ahead once you build a strong team and let it run