management
Download
Skip this Video
Download Presentation
MANAGEMENT

Loading in 2 Seconds...

play fullscreen
1 / 223

MANAGEMENT - PowerPoint PPT Presentation


  • 201 Views
  • Uploaded on

MANAGEMENT. WHAT IS MANAGEMENT ALL ABOUT ? – 1. 1. The organization Definition : ~ is a system which operates through human activity. Determinative elments of the society, eg.: cash income, entertainment, producing products, services, etc.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'MANAGEMENT' - johana


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
what is management all about 1
WHAT IS MANAGEMENT ALL ABOUT ? – 1.

1. The organization

  • Definition : ~ is a system which operates through human activity.
  • Determinative elments of the society, eg.:

cash income, entertainment, producing products, services, etc.

  • Theory: organizations are very complex social formations, their links can’t be described with only one theory.
what is management all about 13
WHAT IS MANAGEMENT ALL ABOUT ? – 1.
  • Particular theories – different viewpoints, different characteristics :

3 levels

Macro : cooperation among different organizations

Mezzo : structures of the organizations, and influencing factors

Micro : behaviour of the members of the organizations,motivation, conflicts

what is management all about 14
WHAT IS MANAGEMENT ALL ABOUT ? – 1.

2. The management

  • Definition : management is about planning, organizing, leading, and controlling the financial-, physical-, informational-, and human resources.
  • Management functions

4 areas

Planning: is the process of setting objectives and then determining the steps needed to attain them.

what is management all about 15
WHAT IS MANAGEMENT ALL ABOUT ? – 1.

The planning process itself consists of five steps : (1) awarness of the opportunity, (2) establishment of the objectives, (3) determination and choice of alternative courses of action, (4) formulation of derivative plans, and (5) budgeting of the plan.

Organizing : is the process of assigning duties to personnel and coordinating employee efforts in order to ensure maximum efficiency.

The manager must consider both structure and people !

what is management all about 16
WHAT IS MANAGEMENT ALL ABOUT ? – 1.

Controlling : every organization needs to control both operations and people. The controlling process consists of three steps : (1) establishment of standards, (2) comparison of results against standards, and (3) correction of deviations.

Leadership : is the process of influencing people to direct their efforts toward the achievement of some particular goal. Managers must be knowledgeable about human behavior, the concept of leadership, and communication.

what is management all about 17
WHAT IS MANAGEMENT ALL ABOUT ? – 1.

3. The Roles of Managers ( Mintzberg )

  • Interpersonal roles : to keep the organization running smoothly. As a Figurehead (1) : manager meets important people, takes customers to lunch, and simply lets people know that he or she is the key person; As a Leader (2) : the manager is responsible for hiring, training, counseling, and directing subordinates; As a Liaison (3) : the manager interacts with people at the same level of the hierarchy as well as with others outside the organization .
what is management all about 18
WHAT IS MANAGEMENT ALL ABOUT ? – 1.
  • Informational roles : enable the manager to gather and pass on information. As a Monitor (1) : the manager talks to subordinates and gathersinformation that is useful in running the department. As a Disseminator (2) : he or she passes information along to subordinates. As a Spokesman (3) : the manager provides information to people outside the department.
what is management all about 19
WHAT IS MANAGEMENT ALL ABOUT ? – 1.
  • Decisional roles : are the ones through which the manager makes things happen. As an Entrepreneur (1) : who seeks to improve the unit and adapt it to changingconditions. As a Disturbance Handler (2) : trying to resolve problems before they become serious. As aResource Allocator (3) : the manager decides who will get resources and how much they will receive. As aNegotiator (4) : a role that varies with the level of the organization.
structural and cultural characteristics of the organizations 2
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.
  • Basic characteristics of the organizational structures
  • Division of labor : dividing work into small components so that the workers become specialists in their tasks. ( functional, product, geographic – one dimension: functional-line structure/multi dimensions: divisional, matrix organizatons )
  • Authority : the right to command.( one line: line structure/ multi lines: funtional, matrix )
structural and cultural characteristics of the organizations 211
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.
  • Coordination : the synchronization of the human efforts of individuals and groups for the purpose of attaining organizational efficiency. Coordination tools : Technocratic – planning system, budgeting; Structural – report system, teams, projects; Employee oriented – individual/group motivations
structural and cultural characteristics of the organizations 212
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.

2. Organizational Structures

2.1. Line Structure

  • Advantage : simple, well arranged, only one boss, reports and orders following the official way, if the quantity of tasks has changed this structure can be easily modified.
  • Disadvantage : the activity of top management is very complex, not flexible, distorbed information
structural and cultural characteristics of the organizations 213
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.
  • Application : at small organizations, in critical situations
  • Division of labor: according to the accomplishing tasks, according to the manager’s decision
  • Authority : through the official way, centralized decisions
  • Coordination : vertically through the official way, with the tools of power
structural and cultural characteristics of the organizations 214
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.

2.2. Staff Structure

Complete the line structure, the goal is to help the managers in their complex tasks— includes experts on different fields ( eg.: sales, accounting, etc.) without authority.

structural and cultural characteristics of the organizations 215
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.

2.3. Functional-Line Structure

  • Advantage : division of labor among top managers -according to professions-high efficiency, clear regulations, complicated tasks could be accomplished
  • Disadvantage : red tape, slow decision making process, decisions are concentrated on the top of the hierarchy, decrease the ability of accommodation, can not use wide range of products
structural and cultural characteristics of the organizations 216
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.
  • Application : stabil environments, a narrow range of products
  • Division of labor: according to functions, task regulations according to job descriptions
  • Authority : decision making according to functions centralized, highly regulated decisions
  • Coordination : vertically through the official way, horizontally on the same level of hierarchy, strong regulations, technocratic tools
structural and cultural characteristics of the organizations 217
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.

2.4. Divisional Structure

2 faces of Janus : big organization - small organization

  • Advantage : division of labor according to functions, big independency, motivation is important, strategic and operational tasks are seperated
  • Disadvantage : paralell existing functional organizations,increased number of staff-decentralization, divisions became selfish-independency
structural and cultural characteristics of the organizations 218
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.
  • Application : dynamic environments, a wide range of products
  • Division of labor: according to products, customers or regions; strategic leading comes mainly from the center, but one part of them comes from the divisions.
  • Authority : decentralized decisions between the central unit and the divisions, centralized within the divisions
structural and cultural characteristics of the organizations 219
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.
  • Coordination : horizontally hardly among the divisions, technocratic tools

2.5. The Matrix Structure

  • Advantage : horizontally functional groups, vertically groups of products or projects, dynamic and flexible structure, good studying process at problem handlings, mixed structure, accommodate to the challenges
structural and cultural characteristics of the organizations 220
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.
  • Disadvantage : two way leading- conflicts are always there, competition among the managers, nobody dares to take the responsibility for the decisions
  • Application : dynamic environments, conflict management skills within the organization, at complex innovation claims
  • Division of labor: horizontally functional (technical, sales, etc. ) vertically products or projects, well done conflict management are highly suggested between the two divisions
structural and cultural characteristics of the organizations 221
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.
  • Authority : functional and project leaders making the decisions together, decentralized decisions, decisions are not

highly regulated

  • Coordination : horizontally and vertically because of the structure, employee oriented tools
structural and cultural characteristics of the organizations 222
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.

2.6. The Mechanical Structure

Accommodates to the stabil environment

  • Division of labor : exact tasks, experts
  • Hierarchy : coordination on top levels only, Official way, regulation
  • Loyalty, Obedience ( eg.: manufacturing )
  • Concentrated authority
structural and cultural characteristics of the organizations 223
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.

2.7. The Organical Structure

Accommodates to the dynamic environment

  • No specialization, no experts
  • Flexible
  • Communication and interaction is in the whole organization
  • Decentralized authority
  • Functions based on commitment( eg.: Research & Development )
structural and cultural characteristics of the organizations 224
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.

2.8. Patological Structure

Organizations which are not able to became organical, because of the regulations of the mechanical structure.

( New type of tasks )

2.9. Mintzberg

  • Mechanical Bureaucracy : simple tasks, stabil environment, centralized controlling, being efficient in productivity is the most important
structural and cultural characteristics of the organizations 225
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.
  • Professional Bureaucracy :decrease centralization, stabil environment, complicated tasks, experts needed, independence is required eg.: hospitals, universities
  • Enterpreneur Structure : simple, flexible, centralized, experts behind the enterpreneur
  • Adhocracy : are founded for certain projects ( problems ), eg.: marketing, R&D
structural and cultural characteristics of the organizations 226
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.

3. Organizational Cultures

  • Definition :the system of accepted values and beliefs by the members of the organization.

3.1. William Ouchi ”Z” theory

How American business can meet the Japenese challenge ? How could a Japenese company function in the US, and in Japan ?

structural and cultural characteristics of the organizations 227
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.
  • JAPAN : lifetime employment, guarantee of job security, identical salary increases and promotion appointments for those in the same age group, career path that provide each employee experience in every phase of the organization’s operations-no specialized careers, the boss knows well his subordinates, collective decision making and responsibilities
structural and cultural characteristics of the organizations 228
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.
  • USA : unsecure job, not identical salary & promotion at the same age group, quick career path-quick failure, the boss doesn’t know well his subordinates, specialized career, individual decision making and responibilities
  • ”Z” Organization: long term plans, soft methods, lots of information at decision making, groups, trainings
structural and cultural characteristics of the organizations 229
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.

3.2. Handy

  • Power culture : the ” pater ”, who founded the organization, is in the central; he makes all the decisions, useful at small organizations, eg.: financial crisis
  • Role culture : stabil environment, rules & regulations are the most important, bureaucratic organizations, eg.: mass production
  • Task culture : the goal is to solve the tasks, regulations are not too important, matrix organizations, eg.: R&D
structural and cultural characteristics of the organizations 230
Regulation oriented

Goal oriented

Supportive

Innovation oriented

Orientation

STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.
  • Personality culture : special organizations eg.: attorney offices

3.3. Quinn

Margin

2 dimensions : Margin of movements ( level of flexibility / controlling ), Orientation ( whether the organizations focus on inside or outside of the company )

structural and cultural characteristics of the organizations 231
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.
  • Supportive : focus on human relations, inside
  • Regulation oriented : focus on regulations and stability,
  • Goal oriented : focus on goals, strong regulations, outside
  • Innovation oriented : accommodate to the environment, creativity, development
structural and cultural characteristics of the organizations 232
High

Make a bet for your company

Game Fellow

Risk taking

Work hard, play hard

Process

Low

Fast

Feedback

Slow

STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.

3.4. Deal & Kennedy

2 dimensions : risk taking, feedback from the market

structural and cultural characteristics of the organizations 233
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.
  • Game Fellow : risk lovers, high risk takers, fast feedback about the good / bad decision, eg.: PR companies
  • Work hard,play hard : small risk, quick feedback ( eg.: bonus at big organization ), low risk activities
  • Make a bet for your company : serious decisions eg.: new investments, very slow feedback
  • Process culture : low risk, eg.: banks, no feedback, important : how to make it
structural and cultural characteristics of the organizations 234
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.

3.5. Schein : organizational cultures according to professions

  • Operators : basic activities
  • Engineers : experts in technical processes
  • Executives : managers

Conflicts : operators-engineers

structural and cultural characteristics of the organizations 235
STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.

3.6. Hofstede : cultural differences

  • Power distance dimension : boss - subordinates
  • Uncertainity-Avoidance dimension : how strong are the regulations eg.: risk or security, hard work, etc.
  • Individualism-Collectivism dimension : I-We
  • Masculinity dimension : Feminine : equality -Masculine : man dominates ( US-Japan )
motivation 3
MOTIVATION – 3.
  • What is motivation?
  • How to manage subordinates to reach the company’s goals and be satisfied at the same time
  • Motivation is concerned with the ”why” of human behavior. Why do people do things?
  • The person directs his/her behavior toward important goals ( wishes, desires, etc.).

Unsatisfied needs Goal directed behavior Need satisfaction

motivation 337
MOTIVATION – 3.
  • An unsatisfied need is a starting point in the process of motivation. This cause tension within the individual, leading the individual to engage in some kind of behavior to satisfy the need, and therby reduce the tension.
  • If the need couldn’t be satisfied, cause frustration, and agressive behavior, such as

1. Rational behavior : always blame it on others

2. Regration : always give up trying

motivation 338
MOTIVATION – 3.

3. Complex : always behave the same way, and never reach anything

4. Resignation : always escape from reality, looses faith in life

motivation 339
MOTIVATION – 3.

2. The content theories of motivation

2.1. Maslow’s need theory : holds that an individual strives for need satisfaction at a particular level. When needs at one level basically satisfied, they no longer serve as motivators, and the individual moves on to the next level of hierarchy.

2

5

4

3

1

motivation 340
MOTIVATION – 3.
  • The Five Levels
  • Physiological needs : primary needs, eg.: food, clothing, etc.
  • Safety needs : individual’s need for security or protection
  • Social needs : individual’s need for love, sense of belongingness
  • Esteem needs : the individual needs to feel important, and power and status provide a basis for this feeling
  • Self – Actualization needs : to fulfill one’s desire
motivation 341
MOTIVATION – 3.

2.2. Alderfer’s need theory

E- Existence needs -1: are related to survival and safety

R- Relatedness needs – 2: stress interpersonal and social relationships

G- Growth needs – 3: are related to the individual’s desire for personal development

2.3. Herzberg’s two-factor theory

When do people feel exceptionally good or bad about their job. What kind of factors link to satisfaction or dissatisfaction ?

motivation 342
MOTIVATION – 3.
  • Motivators – some job conditions build high levels of motivation and job satisfaction, such as :

Achievement,

Recognition,

Advancement,

The work itself,

The possibility of personal growth,

Responsibility

motivation 343
MOTIVATION – 3.
  • Maintenance factors : don’t build strong motivation, but dissatisfy employees when they are not present.

Salary,

Supervision,

Working conditions,

Interpersonal relations,

Company policies, and administrations

motivation 344
Motivators

No satisfaction

Satisfaction

Maintenance factors

No dissatisfaction

Dissatisfaction

MOTIVATION – 3.
motivation 345
MOTIVATION – 3.

2.4. McClelland : achievement motivation theory : based on ”learned” needs

1. Affiliation Need: friendship, love, cooperation

2. Achievement Need: success, new challange

3. Need of Power: prestige, the desire to influence people

2.5. Hunt : individual goals : the person own goals direct his/her behavior at the workplace.

Welfare, Comfort, Cooperation, Relationships, Power, Respect, Creativity

motivation 346
MOTIVATION – 3.

3. The process theories of motivation

3.1. Skinner – Reinforcement theory

considers the use of positive or negative reinforces to motivate or create an environment of motivation.

Positive : rewarding someone for certain achievements

Negative : stops those consequences which the subordinates don’t like ( disciplines ).

motivation 347
MOTIVATION – 3.

3.2. Theory of Objectives-Management by Objectives ( MbO )

What are the goals and thoughts of the subordinates ?

This method typically involves the establishment of objectives to be accomplished by the subordinate.

motivation 348
MOTIVATION – 3.

3.3. Vroom’s Expectancy Theory

Individuals will exert work effort to achieve performance which will result in preferred rewards. The management FOCUS that follows is about rewarding workers in such a way that increased effort occurs.

Individual effort to perform (tools, resources, skills): results in Level of performance (this effort will lead to reward): results in Outcomes (Instrinsic reward : eg.: recognition, or Extrinsic reward: eg.: job security )

leadership 4
LEADERSHIP – 4.
  • What is leadership all about?

The process of influencing people to direct their efforts toward the attainment of some particular goal or goals.

2. Personal –Behavioral Theories

2.1. Kurt Lewin - 3 styles of leadership :

1. Autocratic: makes all the decisions, has the authorty, creates strict rules

2. Democratic: let the subordinates participating in the decision makin process, feedback- Lewin preferred this style

3. Laissez Faire : leave the organization alone, doesn’t play the leader role

leadership 450
LEADERSHIP – 4.

2.2. Liker : leadership styles according to the level of subordinate’s participations

1. Exploit-commanding : manager makes decision, and announces it

2. Kindly-commanding : the communication channels working on both way, but in a paternalistic way; still the manager makes the decision, but listen to the subordinates

leadership 451
LEADERSHIP – 4.

3. Consultative : manager presents problems, gets suggestion, makes the decisions

4. Particiating groups : manager and subordinates make the decision together

2.3. Tannenbaum – Schmidt

Boss centered leadership

Subordinates centered leadership

1 2 3 4 5 6 7

leadership 452
LEADERSHIP – 4.
  • Manager makes decision and announces it
  • Manager ”sells” decision
  • Manager presents ideas and invites questions
  • Manager presents tentative decision subject to change
  • Manager presents problem, gets suggestions, makes the decision
  • Managers defines limits; ask group to make the decision
  • Manager permits subordinate to function within limits defined by superior
leadership 453
LEADERSHIP – 4.

2.4. Blake – Mouton : managerial grid theory

Leadership style can be plotted on a two dimensional grid

Concern for people

high

Team

Country Club

Middle of the road

Impoverished

Task

low

Concern for high production

low

high

leadership 454
LEADERSHIP – 4.

Task ( hajcsár ): the leader concentrates on task efficiency, but shows little regard for the development and morale of the subordinates

Impoverished: low concern for people and production

Country Club: the leader concentrates only on subordinates, but not on task efficiency

Middle of the Road (Szervezeti ember ): adequate task efficiency and satisfactory morale are the goals of this style

Team: high concern for people and production at the same time

leadership 455
LEADERSHIP – 4.

3. Contingency theories-Situational theories

3.1. Vroom-Yetton modell

Their theory attempts to identify the appropriate leadership style for a given set of circumstances, or situations. Five leadership styles are suggested by them:

Autocrative I. (AI): the leader makes the decision alone

Autocrative II. (AII): the leader obtains information from followers, then decides on the solution to the problem

leadership 456
LEADERSHIP – 4.

Consultative I. ( CI): The leader shares the problem with subordinates individually, and makes the decision with or without the opinion of subordinates

Consultative II. ( CII): The leader shares problems with subordinates as a group, and makes the decision with or without the opinion of subordinates

Group decision ( GII ): The leader and the group solve the problems together

leadership 457
LEADERSHIP – 4.

3.2. Fiedler theory of leadership

Fiedler has developed a dynamic situational theory of leadership. Four important situational dimensions are assumed to influence the leader effectiveness:

The leader: experience, thought, value, confidence in subordinates, conflict and stress handling, relationship

The subordinate: needs, the level of knowledge, motivation at certain problems, tolerance toward uncertainty

leadership 458
LEADERSHIP – 4.

The task : complexity, routine or non routine, time factor, risk

The organization : structure, traditions and habbits, environment ( inside )

Consultative

Autocrative

The leader

The subordinate

The task

The organization

leadership 459
LEADERSHIP – 4.

3.3. Hersey – Blanchard: situational leadership modell

  • Involves with leader-subordinates, leader-tasks relations, and
  • With the maturity of subordinates.

There are 4 leadership styles:

S1: Telling: high task, low relationship – the leader controlls and makes the decision

S2: Selling: high task, high relationship – the leader controlls and makes the decision – the leader leads, but listen to the subordinates

leadership 460
LEADERSHIP – 4.

S3: Participating: low task, high relationship– the leader communicates with the subordinates, but leading and controlling are not important

S4: Delegating: low task, low relationship – tasks are done by the subordinates

The maturity level of the subordinates:

R1: Unable, and not willing

R2: Unable, but willing

R3: Able, but not willing

R4: Able, and willing

leadership 461
LEADERSHIP – 4.

high

Participating

Selling

S3

S2

Relationship behavior

Delegating

Telling

S4

S1

low

low

high

Task behavior

R1

R2

R3

R4

Unable, and not wiling

Able, and willing

Unable, but willing

Able, but not willing

leadership 462
LEADERSHIP – 4.

The Combinations of leadership styles and the maturity level of the subordinates out of Rx-Sx:

  • R1-S2 (unable, not willing-selling)
  • R2-S1or S3 (unable, but willing-telling or participating)
  • R3-S2 or S4 (able, but not willing-selling, or delegating)
  • R4-S3 ( able, and willing, or participating)
what effects does surprise management has on decision making 5
What effects does surprise management has on decision making ?- 5.
  • What are the problems of setting up a

forecast ?

  • What is somewhat predictable can be handled by using scenario (forgatókönyv).
  • The future circumstances of the environment are not predictable---- this environment is more complex than it was before---- we do not have enough knowledge about it.
  • What has happened ?
what effects does surprise management has on decision making 564
What effects does surprise management has on decision making ?- 5.

Obvious (tudható)

The changes of the environment are so accelerated that even the weak signals (homályos jelek ) are received too late for the traditional responses.These circumstances triggered to existence the surprise management. The surprise can’t be forecasted by strong- ( világos ) or weak signals; and a false respond can result in a lots of losses, and the lost of the opportunity.

Predictable

(számítható)

Guessable (sejthető)

Unexpected (meglepő)

what effects does surprise management has on decision making 565
What effects does surprise management has on decision making ?- 5.

2. How will the organization get ready for the fast respond?

  • Scenarios don’t apply in such circumstances, because they are only appropriate for those conditions which stands to imagination.
  • We could prepare ourselves for the surprises by learning, and keeping in shape our ability to respond ( reagáló képesség) .
what effects does surprise management has on decision making 566
What effects does surprise management has on decision making ?- 5.

3.How can we adapt the changing circumstances into the process of decision making?

  • The modell of the decision making process is dynamised by the surprise.
  • The surprise effects on the expectations, and on the search for new habitat– new rules needed.
  • Adapting the changing expectations requires attention---changing aspects
what effects does surprise management has on decision making 567
What effects does surprise management has on decision making ?- 5.
  • Viability: expectations-rules
  • Seeking for new habitat : is the process of adapting the function of the organization to get closer to the expectations- learning is the most important--- success : fast mobilization of the resources
what effects does surprise management has on decision making 568
What effects does surprise management has on decision making ?- 5.

Expectations

viability ( életképesség)

Surprise

Seeking for habitat

(Keresés élettér )

Rules

Presentation

moral normative leadership at the expectations of the decision maker 6
Moral / Normative leadership at the expectations of the decision maker – 6.
  • How to lead the well- and bad structured procedures

1.1. The well-structured task:

  • We are able to controll the solution-eg. the capital of Italy is Rome- one clear criteria- only one solution
  • The task could be well described
  • No need for lots of searching or counting
  • Getting from the starting state to the end state we must consider all the relevant factors of the environment
moral normative leadership at the expectations of the decision maker 670
Moral / Normative leadership at the expectations of the decision maker – 6.

1.2. The bad-structured task:

  • The task could not be described, or controlled
  • We can not make rules for this
  • We do not know what we are looking for—lack of knowledge– we have to sculpture the solution– which has to be based on having self-confidence.
  • Eg.: new technology
moral normative leadership at the expectations of the decision maker 671
Moral / Normative leadership at the expectations of the decision maker – 6.

2. What kind of effect does the confidence has on the values of the organization?

  • Create the balance between ”everything has to be regulated” and ”nothing has to be regulated”-the ratio of these defines the culture of the organization!
  • Eg.: Orwell-1984 : everybody observes everyone, and everybody is observed by everyone-absolute controll (normative)
moral normative leadership at the expectations of the decision maker 672
Moral / Normative leadership at the expectations of the decision maker – 6.
  • Eg.: Lovers: people who are in love with each other – absolute confidence (morale : we know what is good or bad for the other),
  • BUT! Marriage settlement : rules and moral
  • Moral leadership: one strives to distinguish between good and wrong
  • Moral leadership is based on ethics which has two types
  • The ethics of intent (Szándéketika): excludes external influence, and it is weighed in terms of the intent itself rather than those of outside influence
moral normative leadership at the expectations of the decision maker 673
Moral / Normative leadership at the expectations of the decision maker – 6.
  • The ethics of the consequences (success) : what is benefitial is moral
  • Moral pluralism: is not about rules, but the struggle of values
  • Everyone has their own view concerning the right, but by the way of communication, they must harmonize their opinion, which brings about mutually acceptable values
moral normative leadership at the expectations of the decision maker 674
Moral / Normative leadership at the expectations of the decision maker – 6.

Reference (Vonatkoztatási) system

In a Changing environment

STAKEHOLDERS

confidence

confidence

This area gives the value

normative rules

normative rules

viability

leadership

habitat

moral normative leadership at the expectations of the decision maker 675
Moral / Normative leadership at the expectations of the decision maker – 6.

3. Who are regarded as stakeholders?

  • The decisions accepted by the stakeholders qualify as moral. The most difficult question is : ”Who is the stakeholder” ? Is everyone or nobody is to be acknowledged? This is quite a common dilemma. Neither extremes are advisable
  • Who is then to be acknowledged? who eventually can acknowledge us (perceive)
moral normative leadership at the expectations of the decision maker 676
Moral / Normative leadership at the expectations of the decision maker – 6.
  • How long can you perceive another? As long as we intend to seek the infinity of the other’s personality. This can also take an infinitive amount of time.
  • You have to will the perception ! The more you want to, the more you will perceive the other’s personality; and the more you get to know of it, the more you long for more. This could only be achieved through a peer dialogue. In this case we can call each other stakeholder
moral normative leadership at the expectations of the decision maker 677
Moral / Normative leadership at the expectations of the decision maker – 6.
  • If anyone does not qualify as a stakeholder anymore, there is no point in feeling guilt for them. It is easier said than done though not to remove guilt for those whom we had no intention of hurting, while they acknowledge us
  • One must find a subtle equilibrum between self esteem and self sacrifice
how will the decision maker think in insecure situations 7
How will the decision maker think in insecure situations ? – 7.
  • What is the difference between insecurity and risk?

0%1-99% 100 %

Information about the environment

InsecurityRiskSecurity

how will the decision maker think in insecure situations 779
How will the decision maker think in insecure situations ? – 7.
  • Everyone likes safe situations. Very comfortable. BUT! Life is not all about safety. It’s impossible!!!

Security = when we know about everything = we have all the information ( 100% ) about the environment We choose the optimal solution (eg.:2 alternatives)

Sunny w.

Play tennis 10

Grab a beer with a friend 6

how will the decision maker think in insecure situations 780
How will the decision maker think in insecure situations ? – 7.
  • Risky situation = matching certain environmental changes to a certain probability level. Quantitative methods: we choose the maximum utility level

Probability level 40% 60% Expected value

Possible alterations Rainy w. Sunny w.

Tennis -1 (output) 10 (output) (-1*0.4)+(10*0.6)=5.6

Beer with a friend 6 (output) 6 (output) (6 *0.4)+(6*0.6)= 6

how will the decision maker think in insecure situations 781
How will the decision maker think in insecure situations ? – 7.
  • Insecurity = no (0%) information about the environment. This is very realistic nowadays, when everything is changing too fast.

So, what can we do?

We can try to guess ”If…….then” rules

But there is a lot to lose!!!

Rainy w. Sunny w.

Tennis -1 10

Beer with my friend 6 6

how will the decision maker think in insecure situations 782
How will the decision maker think in insecure situations ? – 7.

So, how should we make a decision?

2. The optimist, the pessimist and the minimum regret principals

Everyone thinks in a different way:

  • The optimist: just the best thing can happen to me: which situation brings me the maximum utility? Tennis: 10, Beer: 6
  • The pessimist: just the worst thing can happen to me: Tennis: -1, Beer: 6
how will the decision maker think in insecure situations 783
How will the decision maker think in insecure situations ? – 7.
  • The minimum regret principal: whether I make a decision this way or another, the point is: not to have to be sorry for the consequences of my decision. (How much can I loose?)

Rainy w. Sunny w.

Tennis -1 10

Beer with my friend 6 6

3. The meta decision: it is about the decision how to make a decision

Decision making methods: optimist, pessimist, minimum regret level

Meta decision making: HIGHER Level!!! : Eg. The pessimist will be optimist as of tomorrow He/she changes a part of his/her personality!

7

0

7

0

4

when and which type of knowledge is required to make the right decision 8
Knowledge-tudás

Skill-ügyesség

Intuition intuíció

Facts-tények

rules

mesterségbeli

szabályok

(statical-

statikus

additional-

járulékos)

action

cselekedet

(dynamical-

dinamikus

focal

fokális)

explanation

magyarázat

(statikus

járulékos)

clue

sejtés

(dinamikus

fokális)

measurement

(statikus

járulékos)

event

(dinamikus

fokális)

It can’t be put in words,

but can be experienced

szavakba önthetetlen és

megtapasztalható

It can be put in words,

and learned

Szavakba önthető

tanulható

When and which type of knowledge is required to make the right decision? - 8.

1

3

2

What is the knowledge all about?

when and which type of knowledge is required to make the right decision 885
When and which type of knowledge is required to make the right decision? - 8.
  • How does the decision maker use his/her intuition?
  • Intuition is needed when a new dilemma is there, and looking for the solution. It suddenly happens. Intuition=picture ( eg.: the first kiss )
  • Clue : The decision making process is based on a clue, which can’t be put in words, but can be experienced.
  • Explanation: The decision maker explains how he/she got this solution. Rules are not valid for a new dilemma
when and which type of knowledge is required to make the right decision 886
When and which type of knowledge is required to make the right decision? - 8.

2. How does the decision maker use the facts?

  • Event : Something happens, which can’t be put in words, but can be experienced. ( eg.: an explosion)
  • Measurement : what is the truth? Truth=measurable? ( eg.: the radiation of the explosion, do I have 10.000 Ft in the pocket, are you in love?). True/false- Compromised measure. If the truth is not measurable there are no facts. The more the knowledge is improved, the more uncertain it is
when and which type of knowledge is required to make the right decision 887
When and which type of knowledge is required to make the right decision? - 8.
  • The decision making process is not always based on the improvable facts. The decision maker is looking for the connections behind the facts, where the personal knowledge is needed. The decision maker uses the facts to support his/her beliefs-decisions. The decision maker is inseparable from his/her decision. Rules are not valid for a new dilemma.
when and which type of knowledge is required to make the right decision 888
When and which type of knowledge is required to make the right decision? - 8.

3. How does the decision maker use his/her skills?

  • The rules of profession : how well we know our profession, how well we are able to imitate the master. ( eg.: reading, speaking a language ) It can be put in words, and learned
  • Action: It can’t be put in words, but can be experienced. ( eg.: reading, speaking a language) The more you practice the better you be!
  • The decision makers use their skills for communication to have their decisions accepted
what are the problems with the delegated original decisions 9
What are the problems with the delegated original decisions? - 9.
  • Reflex, routine, original decisions

rutin

rutin

eredeti

eredeti

reflex

reflex

Problem solver-problémamegoldó

manager

manager

Executor-feladatelvégző

Symbols, pictures-szimbólumok és képek

megtanult szabályok

megtanult szabályok- learned rules

Instinctive action-ösztönös cselekvés

hallgatólagos tudás

Implicit knowledge

hallgatólagos tudás

hallgatólagos tudás

Implicit knowledge

hallgatólagos tudás

explicit tudás

Explicit knowledge

explicit tudás

WC, c,

WC, cigarettes

Flower, car

Flower,

divorce,

Stock-készlet, payement

Customer, product

S&D-K+F, human-humán

Implicit knowledge: it can not be put in words. „ If….then” rules

Explicit knowledge : It can be put in words

what are the problems with the delegated original decisions 990
What are the problems with the delegated original decisions? - 9.
  • The decision maker faces different kind of dilemmas, where he/she has to decide which-, and what level of his/her knowledge (explicit, implicit) will be applied
  • There are 3 types of dilemma:
  • Reflex decision: we do not think about it, we just do it.- Instinctive actions. Eg.: WC, Paying out the wages: you will be paid out for your monthly work, buying cigarettes, etc.
what are the problems with the delegated original decisions 991
What are the problems with the delegated original decisions? - 9.

2. Routine decision: explicit knowledge- learned rules. Eg.: buying flower for someone’s birthday, writing a contract, buying a car which satisfies our criterias, production according to the technological description

3. Original decision: new situation - the decision maker has to find the new solution- implicit knowledge – symbols and pictures. Eg.: R&D, divorce

what are the problems with the delegated original decisions 992
What are the problems with the delegated original decisions? - 9.
  • Problems:

- Making a routine decision, as an original one

- Focus on simple solutions without understanding the rules of routine

  • Treat a new dilemma like another type of an old dilemma

The organization is slow, if each dilemma is handled as unique, and the organization can not react in time if each dilemma is handled from routine

what are the problems with the delegated original decisions 993
What are the problems with the delegated original decisions? - 9.

2. Why can’t the original decisions be programmed?

  • You can only reproduce phenomena, which are familiar with at least to a certain extent
  • Not knowing the original process of the decision, there is no comperison between it and its modell or caricature.
  • The modell of the decision should resemble to the function of the brain. Our knowledge exceeds what can be described by signs
what are the problems with the delegated original decisions 994
What are the problems with the delegated original decisions? - 9.
  • Thinking is an inner dialogue whose building blocks are meaningful symbols. Therefore it is not comprished of sign and does not stand to logic
  • The modelling of the decision making reject todays techniques as it can not be described by hard signs. The modell of the decisions contains too many abstractions, which provides a deformed picture. Therefore you can not modell the dilemma of the decision.
what are the problems with the delegated original decisions 995
What are the problems with the delegated original decisions? - 9.

3. How subordinates relate to being delegated?

Original decision leader (he is thecoordinator )

Routine decision manager (he is theexpert)

Reflex decision executor

The leader delegates the routine decisions to the manager

what are the problems with the delegated original decisions 996
What are the problems with the delegated original decisions? - 9.
  • The empowerment ( felhatalmazás ) is not too popular.
  • The DILEMMA : If not tasks, but decisions are delegated, people are afraid of the responsibility; (but if tasks are delegated people do not feel that they have the chance to think independently) Commitment is needed
what makes a difference between the search for the adequate and the search for the best solution 10
What makes a difference between the search for the adequate-, and the search for the best solution ? – 10.
  • What are the reasons of the failure of the optimalization ? Complete rationality=optimal solution
  • Why does the decision maker not looking for the best solution? the best solution = optimum ( we suppose that we find the best solution) is not existing. We are thinking differently.
  • What are the reasons?
  • We are not able to put our expectations in words ( from implicit to explicit knowledge)
what makes a difference between the search for the adequate and the search for the best solution 1098
What makes a difference between the search for the adequate-, and the search for the best solution ? – 10.

2. Time – we don’t have enough time to learn our expectations

3. Cognizability (megismerhetőség): eg.: the best husband/wife – do we have time to get to know all of the characteristics ?

2. The bounded rationality – adequate solution

  • The decision maker has some concepts about the adequate solution, which will satisfy his/her expectations, if he/she finds it, he/she will stop looking for a new one. Eg.: a pair of shoes
what makes a difference between the search for the adequate and the search for the best solution 1099
ötletek

ötletek

etika

kifogások

kifogások

kudarc

-

kudarc

-

kezdetnek

siker

kezdetnek

siker

rossz

rossz

What makes a difference between the search for the adequate-, and the search for the best solution ? – 10.
  • Adequate = the best solution
  • Adequate: satisfies the

expectations, ethical

  • Quick decisions needed

expectations

ötletek

search

etika

kifogások

concepts

heurisztika

evaluation

failure

kudarc

-

-

kudarc

kudarc

-

-

kezdetnek

siker

success

kezdetnek

kezdetnek

siker

siker

adequate

rossz

rossz

rossz

what makes a difference between the search for the adequate and the search for the best solution 10100
What makes a difference between the search for the adequate-, and the search for the best solution ? – 10.

3. How could we characterize the search in the real world ? Intuitive rationality – unimpeachable ( kifogástalan) solution

  • Limited time
  • Limited information processing
  • Intuitive rationality: opportunist search: the potential solutions help to develope the concepts of the decision- the decision maker compares the new possibility to the known concepts.
what makes a difference between the search for the adequate and the search for the best solution 10101
What makes a difference between the search for the adequate-, and the search for the best solution ? – 10.
  • Here the decision depends on the versions of cognition’s succession
how will intuition affect the decision making process 11
concepts

ötletek

ötletek

ötletek

Ethic-scale of values

etika

etika

kifogások

kifogások

kifogások

objections

heurisztika

heuristic

kudarc

failure

kudarc

-

-

-

kudarc

kudarc

kudarc

-

-

-

kezdetnek

kezdetnek

siker

success

siker

kezdetnek

kezdetnek

kezdetnek

siker

siker

siker

wrong start

rossz

rossz

rossz

rossz

rossz

How will intuition affect the decision making process?-11.

1. Intuitive rationality ( 10. )

Eg.: buying a pair of shoes

Expectations:

Black, high heel, leather

In the shop we saw red

shoelaces

Heuristics

how will intuition affect the decision making process 11103
How will intuition affect the decision making process?-11.

2. Which heuristics appear in the decision making?

  • We make complex decisions using patterns deriving from previous experience. These patterns call heuristics are sometimes very useful or rather dangerous
  • The catch of Status quo: we like to believe that our decisions are rational and objective, but to some extend everybody is prejudiced, which influences their decisions
how will intuition affect the decision making process 11104
How will intuition affect the decision making process?-11.
  • The decision makers are strongly biased and tend to make decisions in favour of status quo Because we want to protect our ”ego” from the trauma of disappointment
  • Dristing apart from Status quo means that we have to act. If we act, we take the responsibilities, which leave us open to criticism and pitty
  • Status quo means security as opposed to anything new which may bring incertainty
how will intuition affect the decision making process 11105
How will intuition affect the decision making process?-11.
  • Uncertain things are always open to criticism
  • Wrong start : Making the most of decision, making one had to rid with the idea of black and white. White representing Status quo and black anything undesirable. A good decision is made in the grey range. This is referred to as a wrong start.
  • The master’s expectations are in the grey range
how will intuition affect the decision making process 11106
How will intuition affect the decision making process ?-11.

3. What does the decision maker perceive during browsing ?

The gaps of perception:

  • Delusion, distortion ( over estimated strong signs or status quo )
  • Selective listening: the observer can not pick up the sign, which he/she has previous knowledge of. If you choose to ignore your previous knowledge your listening is selective
how will intuition affect the decision making process 11107
How will intuition affect the decision making process ?-11.
  • Objection: if you want an objection you will find the way
  • Strong negative signs ( eg. Toothache ) override the positive ( eg.: being in love with someone ) ones. Strong or familiar signs call more our attention. We can only focus on one thing at the same time. The master won’t pick up every signs.
  • The selective learning is defined by the new concepts. The more you apply a rule in decision making the more likely it is to prevail
can you transform the manager s expectatons into leader s expectations 12
Can you transform the manager’s expectatons into leader’s expectations? -12.

The leader = conductor of an orchestra, creates global concepts and hands them out to the managers to transform into well-structured tasks

  • What connections does the manager analyze ?
  • The decision maker analyzes the logical relations ( if-then rules ), and the manager deals with arithmetical relations
can you transform the manager s expectatons into leader s expectations 12109
Can you transform the manager’s expectatons into leader’s expectations?- 12.

2. The elements of the decision maker’s thinking :

  • Concepts, Metaphores – tailored to the actual need . (new concepts cannot be described with old metaphores). Eg. An elephant-blind people
  • The decision maker is able to see the whole picture, and use the rules of logic- he/she thinks in metaphores
can you transform the manager s expectatons into leader s expectations 12110
Can you transform the manager’s expectatons into leader’s expectations?- 12.

3. How does the decision maker organize his/her notions?

  • The patterns he/she applies are independent meaningful units of his/her thinking . Eg.: telephone number or a whole poem
  • The patterns shape the world, the world shapes the pattern
  • Rendering thoughts and perceptions into patterns makes it easier for the decision maker to filter a large amount of information
can you transform the manager s expectatons into leader s expectations 12111
Can you transform the manager’s expectatons into leader’s expectations?- 12.
  • Patterns help ineliminating redundant details or substitute missing elements to complete the picture: I believe what I see I see what I believe
  • New patterns can only be comprehended on the basis of the existing ones
  • If the details do not add up to render a meaningful picture on the basis of previous experience, the answer is lost and you cannot make the next logical move
can you transform the manager s expectatons into leader s expectations 12112
Can you transform the manager’s expectatons into leader’s expectations?- 12.
  • You cannot tell how your patterns will relate to each other at a given moment, and what is the outcome when the picture is complete, and your intuition is justified
  • Notions describing the objective world are structured into a rigid hierarchy ( Eg.: animal-bird-sparro)
  • If you tamper with the order within the hierarchy, confusion immediately follows ( Eg.: animal-sparrow-bird)
can you transform the manager s expectatons into leader s expectations 12113
Can you transform the manager’s expectatons into leader’s expectations?- 12.
  • Bad news : it is not as simple as that
  • In a less-than perfectly structured world as ours, these clear-cut rules fail to apply every time, you use them trying to describe categories that are not clearly defined.Eg.: ”motivation”, ”loyalty”, ”success”, which may differently be interpreted by different standards of individual order of values
the characteristics of the levels of knowledge 13
The characteristics of the levels of knowledge -13.
  • How many patterns are there on certain levels?

Level

Patterns

The quality of patterns

Solutions rendered

Preferences

Who sees what

The used language

the characteristics of the levels of knowledge 13115
The characteristics of the levels of knowledge -13.

2. Whose knowledge can be modelled?

  • Only the knowledge of the expert can be modelled. This knowledge supports the decision maker .
  • Explicit knowledge : It can be put in words
  • Special knowledge
  • Discipline : some thousands of cognitive patterns
  • Do you know about it? And not : How much do you know about it?
the characteristics of the levels of knowledge 13116
The characteristics of the levels of knowledge -13.
  • The amateur and advanced level coul be also interesting, but they do not have an important role in the decision making process – not too many patterns- no connection among them

3. What makes a master?

  • Patterns within their discipline : N*10000-meta
  • Solution: some- but they are more valuable than the solutions of the experts
the characteristics of the levels of knowledge 13117
The characteristics of the levels of knowledge -13.
  • Focuses only on the point, during the problem solving process, use the rules of logic, sees the whole picture, language : metaphores
what are the problems of the problem solver with securing acceptance of the novum 14
What are the problems of the problem solver with securing acceptance of the novum?-14
  • What is the difference between the knowledge of the Problem Solver and the Decision Maker?
  • The decision: we choose something from the already existing alternatives
  • The problem: a new solution has to be created, which is the knowledge of the novum
  • Novum : to create new expectations, new connections
  • Intuitive thinking
what are the problems of the problem solver with securing acceptance of the novum 14119
What are the problems of the problem solver with securing acceptance of the novum?-14
  • The decision maker is always looking for something, and he/she has to find his/her expectations in the solution
  • The problem solver is able to see certain things which have never happened before
what are the problems of the problem solver with securing acceptance of the novum 14120
Interiorizál

Interiorisate

Azonosul

Self-identification

Hiteles

Authentic

Behódol

subserve

Vonzó

Attractive

Meggyőzés

Convincing

EQ

Fenyeget

Threat

IQ

Produktum

Output

Statikus

Statical

Dinamikus

Dynamical

What are the problems of the problem solver with securing acceptance of the novum?-14

2. How will be the novum accepted?

what are the problems of the problem solver with securing acceptance of the novum 14121
What are the problems of the problem solver with securing acceptance of the novum?-14
  • The layman believes that the quality of the output is enough for securing acceptance of the novum--- unfortunately this is not enough
  • The solution of the output is a new knowledge ( a dynamical value ), which is known by the problem solvers, but not known by the decision makers
  • Mistake : If the problem solver wants to convince the decision maker with professional arguments
what are the problems of the problem solver with securing acceptance of the novum 14122
What are the problems of the problem solver with securing acceptance of the novum?-14
  • The problem solver has to influence the decision maker with EQ instead of IQ
  • Eg. : if the problem solver describes only the profit of the output, the decision maker refuses its acceptance. If the problem solver threatens the decision maker: ” we are not able to keep step with the competition” – the decision maker will subserve
  • If the decision maker likes the problem solver’s performance– he/ she is able to identify oneself with the output
what are the problems of the problem solver with securing acceptance of the novum 14123
What are the problems of the problem solver with securing acceptance of the novum?-14
  • When the problem solver is able to change the decision maker’s order of value-the decision maker interorisate the output
  • The problem solver with EQ knows exactly that he/she has to influence the emotions of the decision maker to be able to sell the product

(The decision makers are very sensitive for the soft signs)

  • The decision maker has to know who is the swindler, and who is not
what are the problems of the problem solver with securing acceptance of the novum 14124
What are the problems of the problem solver with securing acceptance of the novum?-14

3. How will the Problem Solver influence the Decision Maker?

  • The output is already given, and it has to be a good quality output
  • If the problem solver wants to convince the decision maker with IQ ( professional arguments), can cause inferiority complex, that is why
  • The problem solver use the EQ ( 3 types: authentic, attrective, threat ) to influence the decision maker
what defines the quality of novum at the profit and value oriented companies 15
What defines the quality of novum at the profit-, and value oriented companies? – 15.
  • What defines the quality of novum?
  • There are a lot of so called „”high quality products” ( eg.: Barbie doll, Tamagocchi, Atomic bomb)- But are these good things?-NO!
  • High quality should come with the concept of right-we have to make good things in high quality
  • There may be 2 different approaches to quality :
what defines the quality of novum at the profit and value oriented companies 15126
What defines the quality of novum at the profit-, and value oriented companies? – 15.
  • ”Doing things well”-target oriented,”Producing good things”- value oriented
  • Neither the quality nor the human knowledge can be comprehended by its elements ( eg.: Grandmother’s cake, Mc Donalds hamburger)
  • Quality cannot be unpersonal, universal, and objective. Quality always come together with the experience of the real world
  • We are only able to experience the value, and through the value we perceive the quality
what defines the quality of novum at the profit and value oriented companies 15127
What defines the quality of novum at the profit-, and value oriented companies? – 15.
  • The value of the product is defined purpose rather than its elements
  • The value of the output:

- we want something valuable,

- dynamic value: discovering new materials, working out new methods

- static value: interpretation of the results

what defines the quality of novum at the profit and value oriented companies 15128
What defines the quality of novum at the profit-, and value oriented companies? – 15.
  • Static value ( standardization)

Sometimes you have to accept standards, but that doesn’t mean that standards can be applied in every situation

  • The executors have to accept the expectations of the manager, problem solvers are not bound by them
what defines the quality of novum at the profit and value oriented companies 15129
What defines the quality of novum at the profit-, and value oriented companies? – 15.
  • Standardized expectations: you don’t have to make a decision makes your life very comfortable standardized needs ( eg.: Ads on TV : certain products you’ll like, certain products you won’t like ) You loose your freedom, BUT that makes your life easier !
  • Human relations should work by default and not by standards
  • The problem solver should not smile only because he was trained to, but because he/she has something to offer
what defines the quality of novum at the profit and value oriented companies 15130
What defines the quality of novum at the profit-, and value oriented companies? – 15.
  • Dynamic quality

There is always something good in everything, which emerging suddenly without you being able to forecast or repeat it

  • The problem solver often has to go beyond the static quality to be able to create something new
what defines the quality of novum at the profit and value oriented companies 15131
What defines the quality of novum at the profit-, and value oriented companies? – 15.

2. Profit-oriented company: accepts static values- (provincial) successful companies

  • Fiscal reasoning dominates : positive financial balance
  • The target of development, and expected results are clearly outlined
  • The company wants to satisfy the customer’s explicit needs
  • Well structured, centralized task division
what defines the quality of novum at the profit and value oriented companies 15132
What defines the quality of novum at the profit-, and value oriented companies? – 15.
  • The static value (process) defines the structure
  • At the planning process precision is very important
  • Strict deadlines, budget
  • The process is sensitive to changes and interuptions
what defines the quality of novum at the profit and value oriented companies 15133
What defines the quality of novum at the profit-, and value oriented companies? – 15.

3. Value - oriented company: accepts dynamic values: civilized companies

  • Owners reasoning: the value of the knowledge is not defined by a positive balance, but the market price of a company
  • The problem is circumscribable, but the solution is not
  • The stress is on creating new solutions, that increase the value of the company
what defines the quality of novum at the profit and value oriented companies 15134
What defines the quality of novum at the profit-, and value oriented companies? – 15.
  • Dynamic value (the response) determines the structure
  • New solutions quickly turn into static value, which brings a fast change in organizatinal structure, and production organization
  • Individual concepts are supported
  • There are a number of ad hoc teams working on the same issue.
along which way does the problem solver think 16
Along which way does the problem solver think?-16.
  • The weird idea
  • During the problem solving process we are not paying attention to the explanation
  • If the weird idea is there (result of the intuition) our sense starts to act as an inspector, and tries to refute it.
  • We compare the weird idea with our explicit expectations.
along which way does the problem solver think 16136
Szimat

intuition

furcsa ötlet

weird idea

Ész

sense

what

dinamic

Lépcsős

gradual

how

Visszautasít

refuse

IQ

Behódol

subserve

logical

EQ

Azonosul

Self-identification

Interiorizál

Interiorisate

Along which way does the problem solver think?-16.
along which way does the problem solver think 16137
Along which way does the problem solver think?-16.
  • Although we know that our explicit expectations are not satisfied with it, we do feel that this is the right solution, because we have satisfied our implicit expectations
  • Explanations help to reduce the contradictions between our knowledge and our actions
  • There are two possibilities to reduce the contradictions: Either we don’t act against our knowledge, or we change our knowledge
along which way does the problem solver think 16138
Along which way does the problem solver think?-16.
  • The knowledge of the novum’s users are based on learned and experienced patterns Their knowledge is opposite to the weird idea The new solution does not fit in their world That is why logical explanations are needed!
  • We have to convince the novum’users
along which way does the problem solver think 16139
Along which way does the problem solver think?-16.

2. How can you comprehend the weird idea - Lateral thinking

  • Normally you would think in a convergent way: there is only one logical solution
  • Lateral thinking is different
  • Lateral thinking - we change our reference system to be able to understand the weird idea
  • The new reference system shows things from different aspects Eg.: jokes-punchlines: shows the order
along which way does the problem solver think 16140
Along which way does the problem solver think?-16.
  • Changing our reference system is very difficult, but if we want to change it, we have to turn against our thinking, and our experience – at this stage provocation is needed
  • We agree only with those solutions which seem logical afterwards
  • Our conclusions are different from each other, because we perceive certain problems diversely
  • Our experience defines the perception
along which way does the problem solver think 16141
Along which way does the problem solver think?-16.
  • Everyone can have weird idea, if he/she is able to think laterally ( childhood-the child could satisfy his/her desire in his/her room or not, eg.: pictures on the wall )

3. How does the explanation work?

  • Description of the solution: convergent thinking-the one and only solution
  • Convergent thinking: at the well-structured world – where only one solution is good for each problem, and the solution can be controlled, and easily proved by the facts
along which way does the problem solver think 16142
Along which way does the problem solver think?-16.
  • People with convergent thinking have good sense of direction in the hierarchy of a well structured world. They are able to solve those problems well, where all the steps and facts are well known, but they are not able to solve those problems well, where they have to collect the missing details, and evaluate those values. They do not like to get along with soft things
what is hrm all about 17
What is HRM all about? – 17.
  • Each company needs the combination of the following 3 factors to operate:
  • M1-Money
  • M2-Man
  • M3-Manufacturing

Common features of these factors:

  • a certain level of capacity and efficiency,
  • they are available in the market,
  • the price is determined by the relation of supply/demand
what is hrm all about 17144
What is HRM all about? – 17.

Special features of M2:

  • Does not run out: permanent resource
  • Not storable: the capacity which is not used within a certain time frame is lost! It can’t be reserved for next time!
  • Innovative: always able to renew, creates new solutions
  • Makes decisions: resigns from position
  • Is not owned by the company: although it is not part of the equity, it can increase the value of the company (capacity, performance )
what is hrm all about 17145
What is HRM all about? – 17.

2.a. Definition : Human resource management is the function performed in organizations that facilitate the most effective use of people (employees) to achieve organizational and individual goals.

2.b. A brief history of HRM

Although no particular ideology can be attributed to a complete group of people at any given time, it is possible to show an outline development of the personnel function by suggesting a general self-image obtained at different periods.

what is hrm all about 17146
What is HRM all about? – 17.
  • The social reformer: before personnel emerged as a specialist management activity, there were those in the 19th century who tried to intervene in industrial affairs to support the position of the severely underprivileged factory workers at the hands of a rapacious employer. The Industrial Revolution had initially helped people to move away from the poverty and harshness of rural life, or from the hopelessness of the orphanage, to the factories and the cities, but the organisation of the work soon degraded human life and dehumanised working people.
what is hrm all about 17147
What is HRM all about? – 17.

Free enterprise, the survival of the fittest and the ruthless exploitation of the masses were seen as laws of nature, and it was the social reformers such as Lord Shaftesbury and Robert Owen who produced some mitigation of this hardship, mainly by standing outside the organisation and the workplace, offering criticism of employer behaviour within and inducing some changes.

what is hrm all about 17148
What is HRM all about? – 17.
  • The acolyte of benevolence: the first people to be appointed with specific responsibility for improving the lot of employees were usually known as welfare officers; they saw their role as dispensing benefits to the deserving and unfortunate employees. The motivation was the Christian charity of the noble employer who was prepared to provide these comforts, partly because the employees deserved them, but mainly because the employer was disposed to provide them. There were certain companies, which set up progressive schemes of unemployment benefit, sick pay and subsidised housing for their employees.(Paternalism)
what is hrm all about 17149
What is HRM all about? – 17.
  • The humane bureaucrat: we now come to the stage where employing organisations were taking the further step in increasing their size and specialisation. This led to the growth of personnel work on what is loosely called staffing, with great concern about role specification, careful selection, training and placement. The personnel manager was learning to operate within a bureaucracy, serving organisational rather than paternalist-employer objectives, but still committed to a basically humanitarian role. This activity was influenced by the Human Relations school of thought (Taylor,Fayol) and by Elton Mayo
what is hrm all about 17150
What is HRM all about? – 17.

whose central idea was to emphasise informal social relationships and employee moral as contributors to organisational efficiency.

  • The consensus negotiator: personnel managers next added expertise in bargaining to their repertoire of skills. The trend began during the early 1940s but received a major boost when the seller’s market of the immediate post-war period began to harden and international competition made more urgent the development of greater productive efficiency and the elimination of restrictive (or protective) practices.
what is hrm all about 17151
What is HRM all about? – 17.

The personnel manager acquired bargaining expertise to deploy in search of a lost consensus.

  • Organisation man: next came the development of the humane bureaucracy phase into a preoccupation with the effectiveness of the organisation as a whole, with clear objectives and a widespread commitment among organisation members to those objectives. There was an attempt to understand the interaction of organisational structures between, on the one hand, the people who make up the organisation and, on the other, the surrounding society in which it is set.
what is hrm all about 17152
What is HRM all about? – 17.

The development was most clearly seen in the late 1960s and is most significant because it marks a change of focus among personnel specialists, away from dealing with the rank-and-file employee on behalf of the management towards dealing with the management and integration of managerial activity. Its most recent manifestation has been in programmes of organisation and management development, as companies have sub-contracted much of their routine work to peripheral employees, and concentrated on developing and retaining an elite core of people with specialist expertise on whom the business depends for its future.

what is hrm all about 17153
What is HRM all about? – 17.
  • Manpower analyst: the last of our historical stereotypes is that of manpower analyst, associated with the term ‘management of human resources’. A development of the general management anxiety to quantify decisions has been a move towards regarding people as manpower or human resources. Although originally based on an assumption of organisational expansion, manpower planning was reshaped during the onset of organisational contraction to ensure the closest possible fit between the number of people and skills required and what was available.
what is hrm all about 17154
What is HRM all about? – 17.

The activity was boosted by the advent of the computer, which makes a range of calculations and measurements possible which were unrealistic earlier.

3. The Diagnostic Model for HRM

This model in HRM is a framework that can be used to help managers focus on a set of relevant factors. There are 3 main factors included in the model: people; the internal and external environment; and the organisation itself.

what is hrm all about 17155
What is HRM all about? – 17.

External Environmental forces

Economic Conditions - Composition of the labor force - Government requirements and regulations - The union

External Environmental influences

Economic Conditions The labor market Government requirements and regulations The union

External Environmental forces

Economic Conditions Composition of the labor force Government requirements and regulations The union

Human Resource Management Program

HRM Activities People Results

Planning Employees

Job analysis - Abilities Staff

Recruitment and selection - Motivations Performance

Performance evaluation

Career planning and development keep the

Benefits and services Scope of activities employee Attendance

Discipline - Requirements Satisfaction

Labor relations - Compensation Others

Internal Environmental influences

Organizational procedures Rules of organization Strategy Work group

what is hrm all about 17156
What is HRM all about? – 17.
  • Results : can be influenced by the HRM activities. A significant reason for the eventual success of any HRM activity is that the organization’s employees are the best qualified and are performing jobs that suit their needs, skills, and abilities. Having the right staff means the future of the company. The goal is to make the staff think, feel and behave positively toward work and the place of work. Satisfaction. Good reputation makes the company easier to recruit new employees.
what is hrm all about 17157
What is HRM all about? – 17.

There are other factors which could be important for the organization, such as: safety and health, stress handling, etc.

By studying the diagnostic model you should see that in order to work effectively, a number of HRM activities must be efficiently practiced. E.g.: to encourage individuals to use their abilities: it may not be sufficient to only have a properly analyzed job. A sound performance evaluation, equitable benefits and services, and an attractive work schedule may also be needed.

what is hrm all about 17158
What is HRM all about? – 17.

HRM activities are all related to each other and have a combined effect on people. The objectives of the HRM functions must be accomplished in order for the organization to remain competitive and to survive in the environment.

  • Employees – Scope of activities: the basic function of the HRM activity is to create harmony between employees and scope of activities.
what is hrm all about 17159
What is HRM all about? – 17.

Some differences between employee performance affecting HRM programs are due to the differences in abilities (mechanical, motor coordination, mental or creative skills) and motivation toward work and the place of work (working hard, being on time). Generally it is said that the performance of an organization is brought about by the abilities and motivation of the employees.

Each position has general requirements eg.: level of education, and special requirements like experience on a special field. Requirements need to be rewarded with competitive salary and other benefits, that motivate the employee.

what is hrm all about 17160
What is HRM all about? – 17.
  • HRM Activities

-Planning: Two steps: 1. To make a forecast, based on the company’s business strategy needs, about the quantity and quality of the human resources 2. After the environmental forecast, define the right tasks

-Job analysis: The process of defining a job in terms of tasks or behaviors and specifying the education, training, and responsibilities needed to perform the task successfully

what is hrm all about 17161
What is HRM all about? – 17.

-Recruitment and selection: The goal is to find the right person for the right task.

Sources of recruits: two sources of applicants can be used: internal ( present employees), and external (those not presently affiliated with the organization). External recruitment methods: tests, interviews.

-Performance evaluation is a system set up by the organization to regulary and systematically evaluate employee performance.

what is hrm all about 17162
What is HRM all about? – 17.
  • Career planning and development: internal and external trainings help the employees to reach their dream positions
  • Benefits and services are a part of the rewards of employment that reinforce loyal service to the employer. Major benefits and service programs include payment for time not worked, insurance, pension funds and services
what is hrm all about 17163
What is HRM all about? – 17.
  • Labor relations: the continuos relationship between a defined group of employees (represented by a union or association) and an employer. The relationship includes the negotiation of a written contract concerning payment, working hours and other conditions of employment.
what is hrm all about 17164
What is HRM all about? – 17.
  • Internal environmental influences: involve characteristics and factors that are found within the organization.
  • Organizational procedures: how the company will change its activities / the human resources / training
  • Rules of organization: organizational structures

(centralized, decentralized) coordination of the human resources and the scope of activities

what is hrm all about 17165
What is HRM all about? – 17.
  • Strategy: indicates what an organization’s key executives hope to accomplish in the long run.

(Human strategy!)

  • Work group: labor relations

- External environmental influences: involve characteristics and factors that are found external to the organization.

  • Economic Conditions: the general procedures of macroeconomy influence the financial stability of the micro organizations. Also influence the human resources policy.
what is hrm all about 17166
What is HRM all about? – 17.

( good economical conditions more benefits for the employees, poor economical conditions no benefits for the employees)

  • The labor market: the supply and demand situations influence the HRM activities.
  • Government requirements and regulations: the government regulates and influences some aspects of personnel more directly than others (employees’ and employers’ rights). Hungary: Code of Labour.
what is hrm all about 17167
What is HRM all about? – 17.
  • The union: the presence of a union affects most aspects of HRM- recruiting, selection, performance evaluation, promotion, compensation, and benefits among others.
human resource planning 18
Human Resource Planning– 18.
  • Strategy and policy within the framework for management action

Mission: What is the organization for? Where is it going? It is general and visionary.

Strategy: The overriding mission is then continuously implemented by developing a programme of initiatives to define and achieve the organization’s objectives

Policy: The overall mission and strategy are guided by a series of policies to channel decision and action, shaping the organization and providing the direction that is needed

human resource planning 18169
Human Resource Planning– 18.

Procedures: procedures are more familiar to personnel managers than to most management specialists as they form the substance of much employee relations activity, but in our action framework they have the more general meaning of being the drills that implement the policy, so that a policy decision to advertise all vacancies within the organization before external advertising begins is implemented by a procedure to specify who does what, in what order, when and with what authorisation, or other trigger to action

human resource planning 18170
Human Resource Planning– 18.

Planning: Strategy, policy and procedures can all be co-ordinated and moved into action by planning. Not only does each stage benefit from planning, but a planning approach can ensure that all three are thought through and put into operation together

Practice: The final element is what actually happens. No organization has a procedure for everything, and no procedure is so comprehensive as to rule out the need for interpretation and judgement.

human resource planning 18171
Human Resource Planning– 18.

Practice is a mixture of implemented procedures , ad hoc decisions, reaction to policy and the ebb and flow of interaction between the organization and its environment. The effectiveness of a policy can only be determined by the practice that ensues.

human resource planning 18172
Human Resource Planning– 18.

Policy

Procedures

Strategy

Mission Practice

Planning

human resource planning 18173
Human Resource Planning– 18.
  • What is human resource strategy? : A part of the organizational strategy. Human resource strategy involves a central philosophy of the way that people in the organization are managed and the translation of this into personnel policies and practices.
  • Elements:

1. Putting together the goals of human resource strategy ( quantity-quality needs)

2. Working out the action plans

human resource planning 18174
Human Resource Planning– 18.

3. Defining the activities (replacement, career planning, trainings) which are needed for the chosen strategy, and the way of the controlling methods

  • Human policy: is a framework within which other people operate using their own discretion and making their own decision. Human policy is declared! Why managers try to use statements?

1. Clarification

2. Reducing dependence on individuals

3. Producing consistent management behaviour

human resource planning 18175
Human Resource Planning– 18.

4. Knowing where we stand

5. Responding to legal and other external pressure

As a policy is as good as the practice it produces!

To develop human strategy the methods of business strategy is used. Eg.: brainstorming, patterning, SWOT, STEP analyses

human resource planning 18176
Human Resource Planning– 18.

The content of the strategical human resource planning

Strategic management decisions Strategic HR decisions HR planning

human resource planning 18177
Human Resource Planning– 18.

2. a. Types of staff number requirements

If adequate or shortage If surplus

  • Basic staff number requirement - Layoff
  • Reserve staff number requirement - Retirement

--------------------------------------------

Total staff number requirement

- Shortage: overtime, recruitment

human resource planning 18178
Human Resource Planning– 18.

2.b Influencing factors

1. Task Identification: the complexity of the job structure; type of service or product; scheduling of the tasks, contribution proportions.

2. Work process: the level of the practice (routine), cooperation with other systems

3. Technology: machines, tools

4. The person: qualification, performance of the coworkers, job specification

5. The environment: company’s targets, rules, development tendencies, worktime

human resource planning 18179
Human Resource Planning– 18.

3. Employment forecasting techniques

  • Determining techniques: employees have to accomplish certain tasks within a certain time frame

1.a. Analytic requirements determination

- Index number technique: we match the volume of the tasks to the time needed for execution (objective)

- Workplace technique: it is not dependant of the volume of the tasks; set plan for scope of activities

human resource planning 18180
Human Resource Planning– 18.

1.b. Summing requirements determination

- Plan for scope of activities: civil service area: set plan for scope of activities for different periods of time

human resource planning 18181
Human Resource Planning– 18.

2. Stochastical techniques: based on a mathematical procedure in which predictions of the dependent variables are made through knowledge factors known as independent variables. Results must always be completed by forecasts! Types: - Regression analysis,- Correlation analysis, - Exponential finishing

Problems: past staff number records are often incorrectly regarded as number requirement dataChanges in production are often mistaken for changes in work volumeThe method requires too many figures from the past years

human resource planning 18182
Human Resource Planning– 18.

3. Econometrical technique: we examine statistic figures from the economy to be able to forecast the development in the future (use of computers). This technique is suitable to make medium and long term forecasts.

4. Simulation techniques : we model different kinds of systems with a set of different variables. (e.g.: standing in line)

human resource planning 18183
Human Resource Planning– 18.

5. Estimate techniques

5.a. Simple estimate technique: the area manager will forecast the employment needs based on his/her decision, the result is based on the manager’s judgement (subjective),

5.b. Expert-estimate technique: an ”expert” will forecast the employment needs primarily based on his/her decision, or expert group!

-Delphi techniques: intensive questioning of each expert, through a series of questionnaires to obtain data that can be used to make a reliable forecast

human resource planning 18184
Human Resource Planning– 18.

6. Creating new jobs: if the volume of the task, and the certain time frame are not preciesly outlined

6.a. Task analysis

- make a list of tasks

- structure the tasks

6.b. Task synthesis

- arrange the tasks according to quantity and quality

Define the scope of activities for executives and managers

human resource planning 18185
Human Resource Planning– 18.

6.c. Jobs independent of staff number

- In cases none of the above is applicable: a) the number of employees are determined by business policy rather than actual need; b) only one person is needed

selection 19
Selection – 19.
  • Goals, criteria, problems
  • Selection is the process to choose the best available person or persons from a list of applicants, considering current market conditions
  • This definition emphasizes the effectiveness of selection, BUT! decisions taken to chose from the selection must also be efficient. The secondary purpose of selecting is to improve the proportion of successful employees chosen from the applicant list at the least expense.
selection 19187
Selection – 19.
  • The basic objective of selection is to obtain the employees most likely to meet the organization’s standards of performance. The employees’ satisfaction and skills improvement prospects are also sought in this regard.
  • Selection criteria: it will be difficult to select the most appropriate procedure and approach, and it will be difficult to realize the selection process. Selection criteria are normally presented in the form of a person specification representing the ideal candidate. There is a wide range of procedures for this purpose.
selection 19188
Selection – 19.

Lewis (1985) suggests that selection criteria can be understood based on the following 3 aspects:

  • Organizational criteria: are those attributes that an organization considers valuable in its employees and that affect judgement about a candidate’s potential to be successful within an organization ( e.g.: flexibility)
  • Functional/department criteria: between the generality of organizational criteria and the preciseness of job criteria there are departmental criteria
selection 19189
Selection – 19.

3. Individual job criteria: contained in job descriptions and person specifications are derived from the process of job analysis

selection 19190
Selection – 19.

2. Choosing selection methods: Testing

Selection methods: application forms, resumé, references, tests, interviews

  • Tests are to support selection decisions. Questions have been raised as to relevance of the tests to the job applied for and the possibility of unfair discrimination and bias.
  • Critical features of test use:

Reliability of a test is the degree to which the test measures consistently whatever it is intended to measure

selection 19191
Selection – 19.

Use and interpretation: tests need to be used and interpreted by trained or qualified testers.

Context of test: test scores need to be evaluated in the context of other information about individuals

  • Types of tests

1. Aptitude tests: these are tests that measure specific abilities or aptitudes, such as spatial abilities, perceptual abilities, verbal ability, numerical ability, motor ability ( manual dexterity), and so on. There is some debate over the way that general intelligence and special abilities are related

selection 19192
Selection – 19.

1.a. Special aptitude tests measure an individual’s potential, attainment or achievement, tests measureskills that have been already required

2. Intelligence tests: sometimes called mental ability tests, are designed to give an indication of overall mental capacity. A variety of questions are included in such tests, including vocabulary, analogies, similarities, opposites, arithmetic, number extension and general information.

selection 19193
Selection – 19.

3. On the job test: consist of the applicants doing a practical task, or mechanical test, or simulation

4. Personality tests: the least reliable of the employment tests are those instruments that attempt to measure a person’s personality or temperament. The tests based on the person’s honesty and reliability. Psychiatrists needed for the tests! The problem with the use of personality tests is that they rely on an individual’s willingness to be honest, as socially acceptable answer or the one best in terms of the job are often easy to pick out.

selection 19194
Selection – 19.

3. The interview

  • An interview is a goal oriented interpersonal communication between an interviewer and an interviewee
  • Employment selection interviews eg.: provide general information to potential applicants for a specific job opening, determine whether a particular applicant is the most suitable candidate for the job
selection 19195
Selection – 19..
  • Interview strategy

1. Frank and friendly strategy: here the interviewer is concerned to establish and maintain the rapport. This is done partly in the belief that if interviewees do not feel threatened, and are relaxed, they will be more forthcoming in the information that they offer. The potential advantage that the interviewees will leave with a favourable impression of the company.

selection 19196
Selection – 19.

2. Problem-solving strategy: a variation of the frank and friendly strategy is the problem-solving approach. It is the method of presenting the candidate with a hypothetical problem and evaluating his or her answer. These are sometimes called situational interviews. The questionsa asked are derived from the job description and candidates are required to imagine themselves as the job holder and describe what they would do in a variety of hypothetical situations. This method is most applicable to testing elementary knowledge.

selection 19197
Selection – 19.

3. Stress strategy: in the stress approach the interviewer become aggressive, disparages the candidates, puts them on the defensive or disconcerts them by strange behaviour. The idea was used by some business organizations on the premise that executive life was so stressful, so a simulation of the stress would determine whether or not the candidate could cope. The advantage of the method is that it may demonstrate a necessary strength or a disqualifying weakness that would not be apparent through other methods.

selection 19198
Selection – 19.

The disadvantages are that evaluating the behaviour under stress is problematical, and those who are not selected will think badly of the employer.

  • Number of interviews and interviewers

The decision about the number of the interviewers are based on the traditions, and the chosen strategy.

selection 19199
Selection – 19.

1. The individual interview: gives the greatest chance of establishing rapport, developing mutual trust and the most efficient deployment of time in the face-to-face encounter, as each participant has to compete with only one other speaker. The disadvantages lie in the dependence the organization places on the judgement of one of its representatives, and the ritual element is largely missing. The individual interview is very popular in the selection of blue-collar staff.

selection 19200
Selection – 19.

2. Group interview: two or more interviewers.

a. Two interviewers are still able to establish a friendly atmosphere, but if there are more than two:

b. Panel interview : this method has the specious appeal of sharing judgement and may appear to be a way of saving time in interviewing as all panel members are operating at once. They are not having a conversation with the candidates, they are sitting in judgement upon them and assessing the evidence they are able to present in response to their requests

selection 19201
Selection – 19.
  • The selection interview sequence

1. Preparation: we assume that the preliminaries of job analysis, recruitment and shortlisting are complete and the interview is now to take place. The first step in preparation is for the interviewers to brief themselves. They will collect and study a job description or similar details of the post to be filled, a personal specification or statement of required competencies and the application forms or CV of the candidates. If there are several people to be interviewed the interview timetable needs greater planning than it usually receives.

selection 19202
Selection – 19.

2. Interview structure

Stage Objectives Activities

Opening To put the candidate at Greet candidate by name

easy, develop rapport Introduce yourself

and set the scene Explain interview purpose

Outline how purpose will be achieved

Obtain candidate assent to outline

Middle To collect & provide information Asking questions within the

structure that makes sense to

the candidate, such as biographical, areas of the application form, or competencies identified for the job; Listening

Answering questions

Closing To close the interview and Summerize interview, Check confirm future action candidate has no more questions

Indicate what happen next and when

performance evaluation 20
Performance evaluation -. 20
  • Performance evaluation: is a system set up by the organization to regulary and systematically evaluate employee performance
  • Performance evaluation serves several purposes:

- Development purposes: it can determine which employees need more training

- Reward purposes: it helps the organization decide who should receive a raise and promotion

performance evaluation 20204
Performance evaluation -. 20

- Motivational purposes : the presence of an evaluation program has a motivational effect: it encourages initiatives, develops a sense of responsibility, and stimulates effort to perform better

- Legal compliance: it serves as a legally defensible reason for making promotion, transfer, reward, and discharge decision

- Personnel and employment planning purposes: it serves as a valuable input to skills inventories and personnel planning

performance evaluation 20205
Performance evaluation -. 20

- Compensation: it provides information that can be used to determine what to pay and what will serve as an equitable monetary package

- Communications purposes: evaluation is a basis for an ongoing discussion between superior and subordinate about job related matters. Through interaction, the parties get to know each other better

- HRM research purposes: it can be used to validate selection tools, such as a test program

performance evaluation 20206
Performance evaluation -. 20

There are further purposes, such as:

- According to Fletcher & Williams:

1. Evaluation of employees’ work

2. Evaluation of production in order to advance improvement

  • According to Randell:

1. Salary and wage adjustments

2. Promotion consideration

3. Improvement of performances

performance evaluation 20207
Performance evaluation -. 20
  • Performance evaluation types
performance evaluation 20208
Performance evaluation -. 20
  • What is appraised?

Personality Behaviour/Performance Achievement of goals

Knowledge of the job Accomplishment Turnover

Physical force Following orders Output

Eyes-hand coordination Reporting problems Product quality

Qualifications Maintanance Waste

Business knowledge To make notes Accidents

Ambition Keep the rules Repairs

Social skills Work attendance Served customers

Reliability Submitting proposals Number of satisfied

Loyality Non smoking customers

Morality

Creativity

Leadership skills

performance evaluation 20209
Performance evaluation -. 20

2. a. Who contributes to the appraisal process?

  • Immediate manager: usually has the most intimate knowledge of the tasks that an individual carrying out and how well they have been done. ( annual appraisal)
  • Manager’s manager: can be involved in the appraisal process in one of two different ways. First, they may be called upon to countersign the manager’s appraisal of the employee in order to give a seal of approval to indicate that the process has been fairly and properly carried out. Second, they make the evaluation personally.
performance evaluation 20210
Performance evaluation -. 20

3. Member of the HR department: this happens when there is no logical ongoing immediate manager.

4. Self-appraisal: there is a little doubt that people are capable of rating themselves. When employees were asked to compare themselves with others they tended to overrate themselves; however, when individuals prepared self-appraisals for appraisal interviews they were more modest

performance evaluation 20211
Performance evaluation -. 20

5.a. Appraisal by subordinates: is a less usual approach. It is more limited in its value, as subordinates are only acquainted with certain aspects of their manager’s work

5.b. Appraisal by peers: peer ratings are both acceptably reliable and valid and have the advantage that peers have a more comprehensive view of the appraisee’s job performance. They note the problem, though, that peers may be unwilling to appraise each other as can be seen as ”grassing” on each other.

performance evaluation 20212
Performance evaluation -. 20

6. Assessment centers: can be used in the appraisal of potential supervisors and managers. The advantage of assessment centers for this purpose is that ratings of potential can be assessed on the basis of factors other than current performance. Tests, group exercises and interviews are used

performance evaluation 20213
Performance evaluation -. 20

2.b. The methods

Appraisal systems can measure a variety of things. They are sometimes designed to measure personality, sometimes behaviour or performance, and sometimes achievement of goals. These areas may be measured either qualitatively or quantitively.

1. Qualitative appraisal: often involves the writing of an ustructured narrative on the general performance of the appraisee.The problem is that they may leave important areas unappraised, and that they are not suitable for comperison purposes

performance evaluation 20214
Performance evaluation -. 20

2. Quantitative appraisal: when they are measured quantitively some form of scale is used, often comprising five categories of measurement from ‘excellent’, or ‘always exceeds requirements’ at one end to ‘inadequate’ at the other; with the mid-point beeing seen as acceptable.

3. Avoidance of personality measures: much traditional appraisal was based on measures of personality traits that were felt to be important to the job. These included traits such as enthusiasm, drive, application and other traits such as intelligence. One difficulty

performance evaluation 20215
Performance evaluation -. 20

with these is that everyone defines them differently, and that traits that are used are not always mutually exclusive. Rates,therefore, are often unsure of what they are rating.

4. a. Behaviourally Anchored Rating Scales (BARS). The BARS approach relies on the use of critical incidents to serve as anchor statements on a scale. A BARS usually contains the following features: 1. Six to 10 performance dimensions are identified and defined by raters and ratees 2. The dimensions are anchored with + and – critical incidents

performance evaluation 20216
Performance evaluation -. 20

3. Each ratee is then rated on the dimensions 4. Ratings are fed back using the terms displayed on the form

4.b. Behavioural Observation Scales (BOS): uses critical incident technique to identify a series of behaviours that cover the domain of the job.

5. Meeting objectives: is to use to set job objectives for the coming year and, a year later to measure the extent to which these objectives have been met.

performance evaluation 20217
Performance evaluation -. 20

6. Development of appraisal criteria: this is include the use of the critical incident techniques to identify particulary difficult problems at work, content analysis of working documents and performance questionnaires whereby managers and potential appraisees identify ( anonymously) what characterises the most effective job holder and the least effective job holder.

7. Evaluation based on job analysisThe comparison of the actual performance and the initial job requirements. Used in small companies with no need/possibility of complex evaluation procedures.

performance evaluation 20218
Performance evaluation -. 20
  • The appraisel interview: provides job related feedback to employees: open communication between supervisor and subordinate, overviewing formal goals- establishing future goals, feedback to the employees regarding career opportunities

Structure:

1. Purpose and rapport: agree purpose with appraisee, agree structure for meeting, check that pre-work is done

performance evaluation 20219
Performance evaluation -. 20

2. Factual Review: review of known facts about performance in previous period. Appraiser reinforcement

3. Apraisee views: appraisee asked to comment on performance over the last year. What has gone well and what has gone less wee; what could be improved; what they liked; what they disliked; possible new objectives

4. Appraiser views: appraiser adds own perspective, asks questions and disagrees, as appropriate, with what appraisee has said

performance evaluation 20220
Performance evaluation -. 20

5. Problem-solving: discussion of any differences and how they can be resolved

6. Objective setting: agreeing what action should be taken, and by whom

  • 3 types of evaluation interviews

1. Tell and sell:

-role of interviewer: Judge

- objective: to communicate evaluation, and to persuade employee to improve

- assumptions: employee desires to correct weaknesses if he knows them

performance evaluation 20221
Performance evaluation -. 20

2. Tell and listen

-role of interviewer: Judge

- objective: to communicate evaluation, and to release defensive feelings

- assumptions: people will change if defensive feelings are removed

3. Problem solving

-role of interviewer: Helper

- objective: to stimulate growth and development in employee

- assumptions: discussing job problems leads to improved performance

performance evaluation 20222
Performance evaluation -. 20

3. Key to a successful evaluation system

1. Clear objectives: what are the goals of the evaluation? The employees have to have a clear picture about the goals!

2. Commitment of the management: management should participate! Evaluation forms should remain at the departments!

3. Openess, participation: the system should be open to providing more information about the employee him/herself, so the employee can accept these decisions easier.

performance evaluation 20223
Performance evaluation -. 20

4.Acceptance of the evaluation criteria: the involvement of both analysts and testees in the identification of evaluation criteria

5. Training: analysts need training in how to evaluate and how to conduct evaluation interviews

6. Administrative effectiveness: form filling should be kept at a minimum!

7. Follow-up: work plans that are agreed by analyst and testee need to be monitored

8. Culture & Flexibility: the system should go along with the organizational culture

ad