HRM623 Official Handouts

INTRODUCTION, ORGANIZATION THE STAGE FOR LEADERSHIP

Leadership & Team management:

Today's effective leaders must have the capability and confidence to build and develop focused and motivated teams that deliver outstanding operational performance in line with the strategic goals of the organization. This course highlights the processes and techniques leaders have at their disposal to develop their effectiveness and maintain top team performance.

‘Leadership’ and ‘Team Management’ are two commonly used words in today’s organizations. The course derives its roots from the basics of organizational management. In order to build a strong footing for learning of the concepts of leadership and team management, we need to understand the concepts of organization.

What is an Organization?

An organization is a deliberate arrangement of people to accomplish some specific purpose, goals e.g. hospital, profit or non-profit organization, hotels etc.

A. Organizations share three common characteristics: (1) each has a distinct purpose; (2) each is composed of people; and (3) each develops some deliberate structure so members can do their work. Another way to look into this is ….. B. Although these characteristics are important in defining what an organization is, the concept of an organization is changing. These differences include: flexible work arrangements, employee work teams, open communication systems, and supplier alliances. Organizations are becoming more open, flexible, and responsive to changes. C. Organizations are changing because the world around them has changed and is continuing to change. These societal, economic, global, and technological changes have created an environment in which successful organizations must embrace new ways of getting their work done. D. Organizations are working in a dynamic environment and are responsible to different stake holders which can be employees, customers, suppliers, Competitors, Government etc.

Challenges:

Organizations are subject to different challenges. These challenges may be in the form of new trends in the business, changing in the working environment, or technology etc. Every organization has some social entities, has some goals for achieving desired outcomes, and for achieving these goals, organization has specific structures and most important is to link with the external environment. They are not operating in isolation but in a dynamic environment. The most important entity in any organization is the people, the employees of the organization, who make the organization different from the other organizations. The people of the organization are very important and they work in the organization as different groups/teams e.g. admin, finance, marketing, Human resources, technical etc.

Change in the organization:

Change is the true reality of today’s organization. With out change no organization can survive in this competitive environment.

Organizational change is defined as any alteration of people, structure, or technology in an organization. Instead of trying to eliminate change, managers/leaders must realize that change is always present and that they should seek ways to manage change successfully.

Forces for Change:

Both external and internal forces create the need for change. 1. The marketplace 2. Government laws and regulations 3. Technology 4. Labor markets 5. The economy

B. Internal forces creating change usually originate from the internal operations of the organization or from the impact of external changes. These internal forces include: 1. Changes in strategy 2. Changes in the workforce 3. New equipment 4. Changes in employee attitudes

Following are the difference between the traditional and new organizations.

Organizational Performance:

The organizational performance is judge by their profit, effectiveness and efficiency.

Productivity

An overall measure of the quantity and quality of work performance with resource utilization taken into account.

Performance effectiveness

An output measure of task or goal accomplishment.

Performance efficiency

An input measure of the resource costs associated with goal accomplishment.

The Changing Organization

Traditional

Stable Inflexible Job-focused Work is defined by job positions Individual-oriented Permanent jobs Command-oriented Managers always make decisions Rule-oriented Relatively homogeneous workforce Workdays defined Hierarchical relationships Work at organizational facility during specific hours

New Organization

Dynamic Flexible Skills-focused Work is defined in terms of tasks to be done Team-oriented Temporary jobs Involvement-oriented Employees participate in decision making Customer-oriented Diverse workforce Workdays have no time boundaries Lateral and networked relationships Work anywhere, anytime

Note: Most of the characteristics of the new organization are the right requisites for the managers to emerge as organizational leaders. Today, value creation is very important notion of an organization by adding some values. What is value added? It is the relationship between the input & output by using people and get maximum out put. Value is created when an organizational operation add a value to the organization output.

Critical Skills for Success in the New Work Place:

Excellence: You need to be excellent in any way what ever you are doing and excellent work is done through excellent team of people.

Networking: Today’s success is the networking of organization, networking with the peoples and especially with the stakeholders and people who matter.

Entrepreneurship: For Managers/Leaders to be successful skills of entrepreneurship are very critical. In this competitive world, an organization can only survive with good ideas, creativity, innovation and risk taking.

Technology: Technology is the back bone of any organization. Each operation depends now on technology. For this purpose organizations are paying a huge cost. Keeping yourself up-to-date with technology is also very important. Decisions of managers/leaders to chose relevant technology for different operations is very critical.

Changing Technology

a. Competitive factors or new innovations often require introduction of new equipment, tools, or operating methods. b. Automation is a technological change that replaces certain tasks done by people with machines. c. Computerization has probably been the most visible technological change in recent years.

Marketing: For surviving in this competitive environment one should have wonderful ideas. Marketing is also becoming the critical factor in the success of organizations.

Marketing is “getting the right products to the right people at the right price and at the right time place with the right promotion.”

Workplace Changes:

Belief in human capital Demise of “command-and-control” Emphasis on teamwork Preeminence of technology Embrace of networking New workforce expectations Concern for work-life balance Focus on speed

New workplace:

In this era, a highly competitive global economy has created unparalleled opportunities and unprecedented uncertainties and smart people and smart organizations create their own futures by applying new ideas, innovation and adopting continuous change. Companies with a future are committed to people because people are the assets. Also Companies with a future have high performance expectations and provide supportive work environments. High performing companies gain extraordinary results from people. So in this situation smart people and smart organizations