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Organisational Studies

Stakeholders

Groups that are directly affected by and affect an orgs decisions and actions

Can be internal and external

Internal employers, management, board of directors

External customers, social/political groups, competitors, trade & industry assoc, govt, media,suppliers, communities, shareholders, unions.

Why are they important?

Bus. Can predict environment changes, leads to successful innovations, greater trust b/w org. and

int & ext stakeholders, and flexibility.

Higher performing orgs are those that take all stakeholders into consid.

Mgmt of stakeholder rels:

1. Identify s/holders2. Determine the concerns/issues of each3. Decide how critical eacg s/holder is on the decision making/actions of org4. Determine the orgs approach to mgmt of the s/holders

Social ResponsibilityClassical & Social-Eco

Classical purely economical

Belief only soc resp is to maximise profits

Milton Friedman big supporter of view

Sharehol most imp. s/holder & the only one cons when making decisions

1 single concern of bus. financial return

MF: considering social good of org is an extra cost to the bus & should be passed to custs rather

absorbed by sharehols & therefore dec dividends

Socio-Eco looks beyond pure economics

Bus should protect and improve social welfare

Bus are not ind. have resp to society & not just s/holders

Financial gain long term obj not short term (classical) short term: accept social resp & costs

assoc. long term social credibility inc, growth due to cust moving towards triple bottom linebuss eco, social & env bottom lines.

Social Resp Line

Less More

Stage 1 Stage 2 Stage 3 Stage 4

Shareholders Employees Spec. community/ Broader society

stakeholders in bus.

environment

Social Oblig & Social Responsiveness

Social Obligligation oblig of a bus to meet its eco and legal resps.

Org does only what it is oblig to do & feels only social duty is it shareholders (i.e. classical view)

Social responsiveness firm adapting to changing societal conditions, guided by changes in social

norms

Social responsible goes beyond requirements by law or economics to pursue long terms goals

beneficial to society, add an ethical dimension to decision making

Social screening applying social criteria to investment decisions

Little evidence that a comps social actions affect long term eco perf, mgmt should incorportate

social/ethical dimensions into planning, organisation, leading & controlling. By acting socially

irresp it creates signif bus risks

Ecological sustainable mgmt recog of link b/w orgs dec/activities on natural env, mgmt need to

be aware of env issues in order to make informed bus decs

Serious env probs pollution, indust toxic waste, resource depletion, global warming

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Green Approaches

Low High

Legal App Market App S/holder App Activist App

Light Green Dark Green

Legal doing what is req by law, little env sensibility, obey laws, rules & regs but no legal chall(social oblig approach)

Market respond to env pref of custs, whatever env demands customers make the org will

provide (social responsiveness)

Stakeholder works to meet env demands of stakeholders, e.g. employees, supps or community

by greener approaches to supply chain, design & packaging (as above)

Acitivist respect & works to preserve env resources, highest deg of env sensitivity, overhauling

ops & functions in order to be as sustainably as poss (social responsibility)

Values based mgmt mgmt approach mngrs est & uphold orgs shared values

Four purps

- serve as a guide to mngr decisions & actions- shaping employee behaviour & comm orgs expectations to members- Influence marketing efforts (boasting rights thru adv)- Building team spirit in orgs

Ethics rules & principles that define right & wrong conduct

Facs affecting emp ethics: (3 levs, 6 stages)

- stage of moral develLevels:

1. Preconventional choice dep on personal conseq e.g. phys punish, reward orexchange.

a. Obedience and punishment avoidenceb. Selt interest whats in it for me to obey

2. Conventional moral vals dep on expected standards & living to expectationsa. Interpersonal & conformity social norms, good boy/girl attitudeb. Authority & social order law/order morality (most adults here)

3. Principled clear eff to define mor prins, regardless of auth of the groups theybelong to or soc in gen.

a. Social contractb. Universal ethical princs principled conscience

Stages: People move up ladder sequentially but can stop at any stage.

- individual charactvalues basic convictions of what is right and wrong

two personality varbs:

1. Ego strength measure strength of a persons convictions, malleable, can beswayed, persuaded to change

2. Locus of Control reflects degree person believes they control own fate.Internal locus of control: control their own destinies (more person resp for

actions). External: what happens is due to luck or chance (less personal resp)

- structural variabsOrg struc design infl either a guidance, or ambiguity/uncertainty. Job descs, codes of

cond/ethics, use of goals, perf apprais & reward proceds promote consist behav.- org culture

culture likely to infl high eth stands risk tolerance, control & conflic tolerance, emps

encour to be aggress & innovative, aware of conseq.

- issue intensity6 factors determine how imp an ethical issue is:

1. the amt of people who will be harmed by dec2. level of agreement that the action is wrong3. the liklihood dec will cause harm4. how immediate the conseqs will be felt, imposed

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5. proximity to the victim/s6. concetration of affect on victim/s

Improv eth behav:

- employee selectionthru interviews, tests, b/ground checks opp to learn about lvl of moral dev, personal

vals, ego stregth & locus of control

- codes of eths & dec rulesCOE formal stmt of orgs primary vals & eth rules expected to be followed decambiguity, specific enuf to explain expectations but still allow for freedom of judgement.

- top mgmt leadership/conducteth bus. req commitment from top mgmt lead my example, set cultural tone of comp.

- goals & appraisal imp to set realist goals & targets otherwise may lead to uneth behavin order to meet unrealist goals & avoid a neg appraisal

- training seminars, workshops, programs to encourage ethic behav. Inc intl ethics forglobal trading.

- social audits indep social audits of cos eval dec making & mgmt practices, codes of ethsetc.

- protective mechanism provide mech that protect emp who face ethic dilemmas & cando the right thing without fear of reprimand

External Environment factors and forces outside the org that affect the orgs perfTwo components: specific env & general env

Specific Environment external forces that have a direct impact on the mngrs dec & actions,

directly relevant to achev of orgs goal. E.g. customers, suppliers, competitors & pressure groups

General Env broad external conditions that affect the org.

e.g. economic, legal/political, sociocultural, demographic, technological & global conditions.

- Eco interest rates, inflatio, disposable incomes, share market fluct, business cycles.- Legal/political federal, state & local governments through regulations & policies e.g.

TPA, env protection laws, anti-disc laws, industrial relation reforms & global politics

trade agreements, relations.

- Sociocultural mngrs & orgs adapt practices to changing expectations of the society theyoperate in values, customs & tastes always changing. Esp important when trading in

foreign countries- Demographic trends: gender, age, edu lvls, geo, imcome, family trends (ABS),

generational patterns & changes

- Technological radically changes the funda ways orgs structured & operate.- Global conditions globalisation, borders meaningless, inc foreign trade, TNCs, inc

competition.

Env uncertainty degree of change & complexity in orgs envDegree of change freq change dynamic env, minimal change stable env

Deg of complex # components in an env & the extent of knowledge of them (simple/complex)

Globalisation - process regional eco, societies, and cultures become integrated through a global

network of commun, transp, and trade, integration of national econ into the intl economy thru

trade, foreign direct investment, capital flows, migration, and the spread of techn. Usually driven

by eco, techn, sociocultural, political, and biological factors.

Parochialism viewing the world thru only your persp, unable to recog diffs b/w ppl

3 global attitudes:

- ethnocentric: best work approaches are those of the home country- polycentric: mngrs in the host country know the best work prac for the org- geocentric: world oriented view, use the best approaches & best ppl from all over world

Leaders & Leadership

Leaders person who influences others & has mngr auth.

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Leadership process of influ others in order to achieve goals

Theories of l/ship:

- trait theories: theories that tried to isolate characteristics that isolated leaders fromnonleaders

research 1920/30 focused on traits of leaders, 7 traits associated with the process: drive,

desire to lead, honesty & integ, self-conf, intell, relevant knowledge, extraversion

- behavioural theories - 1940s-60 research into behav of effective leaders. 4 main studies:o Uni Iowa

Autocratic centralises auth, dictates work meths, unilateral dec, limitsemp partic

Democratic involves emps in dec making, enc partic, utilised feedback Laissez-fare generally gives team complete freedom to do tasks at will

o Ohio State Initiating Struc extent leader likely to define & struc their role & roles

of team membs

Consideration extent leader has job relations w/ mutual trust, respectfor ideas & feelings in team

High-high leader high struc & high consido Uni of Michigan

Employee orient emph on interpers rels, interest in needs & indivdiffs among team membs

Production orient emph on the task or its tech aspects, main focus wasaccomp task rather than forming rels.

- Contingency theories define leader style & situation to answer if/then contingencieso Fiedler Model: effective group perf deps on match b/w leaders style of

interaction with the situation if it allowed leader to control/influ. Devel LPC

(least pref co-work) high score = responder pref relat orient l/ship style, low

score = resp pref task orient l/ship3 conting dimen:

Leader/memb relat deg of conf, trust & respect for leader Task struc degree deleg was formalised Position power degree influ leader over power activities e.g. hiring,

firing, discipline.

Contemp views on l/ship:

- Transactional leaders: guide by using social exchanges/transaction motivate to workto goals by exchanging rewards for productivity.

- Transformational leaders: stimulate & inspire followers to achieve extraordinaryoutcomes by challenging and exciting.

- Charismatic leaders: enthus, self conf leader, personality & actions influ ppl to behave inspec ways. They have: vision, articulation of vision, risk taking, sensitive to their env,

extraord behav

- Visionary leaders: ability to artic realistic, cred, attractive vision that improves upon thepresent

Team leaders are:

- liasiors with external constituency e.g. upper mgmt, cust, supps, other teams. They repthe team to other ppl/teams.

- Trouble shooters: team leader often asked for assist, resolve probs in the team, rarelytech.

- Conflict mngrs help process the arg, identify the source & offer resol options- Coaches clarify expects, roles, teach, offer supp, keep perf up.