L2-20100903

L2-20100903 - /HFWXUH   6 HS WHP E HU    /DVW...

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Unformatted text preview: /HFWXUH   6 HS WHP E HU    /DVW OHFWXUH NH\ SRLQWV • 2% LV D VWXG\ RI ZKDW SHRSOH WKLQN IHHO DQG GR LQ DQG DU RXQG RU J DQL] DWLRQV • 2U J DQL] DWLRQV DU H J U RXSV RI SHRSOH ZKR ZRU N LQWHU GHSHQGHQWO\ WRZDU G VRP H SXU SRVH • 2U J DQL] DWLRQV H[ LVW E HF DXVH WKH\ HQDE OH XV WR GR WKLQJ V ZH F RXOG QRW GR ZLWKRXW WKHP  RU F RXOG QRW GR ZHOO ZLWKRXW WKHP • 2% KHOSV \RX WR E H D J RRG F RZRU NHU DQG HP SOR\HH DV ZHOO DV DQ HIIHF WLY H OHDGHU Where is the evidence between OB and performance of an organization? What What do we mean by an organization is “successful”? Agenda for today class 1. OB and organization 2. Organizational effectiveness • • What is organizational effectiveness? 4 perspectives of organizational effectiveness By the end of this lecture, you should be able to: 1. explain the impact of OB on organizations 2. define organizational effectiveness 3. explain with illustrations the four perspectives of organizational effectiveness ' RHV RUJ DQL] DWLRQDO E HK DY LRU P DWWHU" 3RLQW • $ Q RU J DQL] DWLRQ V DE LOLW\ WR P DQDJ H 2% KDV VLJ QLILF DQW LQIOXHQF H RQ LWV E RWWRP OLQH SU RILWDE LOLW\ & RX QWH U S RLQW • $ Q RU J DQL] DWLRQ V DE LOLW\ WR P DQDJ H 2% GRHV QRW KDY H LQIOXHQF H RQ LWV E RWWRP OLQH SU RILWDE LOLW\ • , I D F RP SDQ\ KDV D E DG HQRXJ K SU RGXF W LVQ W LW WU XH WKDW SHRSOH ZRQ W E X\ LW U HJ DU GOHVV RI KRZ KDSS\ P RWLY DWHG RU F RP P LWWHG LWV ZRU NIRU F H LV" Which automaker finished behind only Lexus and Porsche in a study of quality in 2009? “It has no room, you have to push it to get going, and it only goes downhill!” Behavioral Science Contribution Unit of analysis Output ! " !# $# $#! & ' # ( # $# % # " * + * ) ' RHV RUJ DQL] DWLRQDO E HK DY LRU P DWWHU" • )LUPV WKDW DSSO\ 2% SUDFWLFHV KDYH  WLPHV WKH OHYHO R I I LQ DQ FLDO VX FFHVV DV FR PSDQ LHV Z KHUH WKHVH SUDFWLFHV DUH DE VHQ W • & R PSDQ LHV WKDW HDUQ WKH E HVW SODFH WR Z R UN DZ DUG V KDYH VLJ Q LI LFDQ WO\ KLJ KHU I LQ DQ FLDO DQ G OR Q J WHUP VWR FN PDUN HW SHUI R UPDQ FH , W LV D UHVX OW R I PR UH I DYR UDE OH HPSOR \HH DWWLWX G HV G HFLVLR Q V DQ G HPSOR \HH SHUI R UPDQ FH (textbook, p.5) ! ,. , !' ,5 , $ /, 4 ,& ,$ ! ,.! ,# 9 ,. ,4 , < )! , ! & # , , . , & , 2 , 6 , 2 ,# /, /, & , , 6 (8# ' ! #; / , 2$ : 4 % #% "# , 2 , , 2 $ % # 34 ! # /, 1 0 ,5 ,# ,7 , !1 ) ,# ) , 0;2 , . , $ # 2 1 2 (Source: “And the Winners Are….” Fortune (February, 2, 2009), pp.67-68 Where is the evidence between OB and performance of an organization? What do we mean by an organization is “successful”? Agenda for today class 1. OB and organization 2. Organizational effectiveness • • What is organizational effectiveness? 4 perspectives of organizational effectiveness 2 UJ DQL] DWLRQDO 3 HUI RUP DQFH • ( I I LFLHQ F\ G R WKLQ J V ULJ KW $ PHDVX UH R I KR Z Z HOO R U SUR G X FWLYHO\ UHVR X UFHV DUH X VHG WR DFKLHYH D J R DO * HW WKH PR VW R X WSX W I UR P WKH OHDVW LQ SX W  •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genda for today class 1. OB and organization 2. Organizational effectiveness • • What is organizational effectiveness? 4 perspectives of organizational effectiveness How organizational effectiveness is defined today? + + 7 ; * " ' " ! % " % (textbook, p.5-6) " Basic conversion process 0 # C# ##D +# # / 0 # C# ##D +# # •Products •Services •Employee behavior •Profit/losses •Waste •Pollution •Employee layoffs 4 26 ! ! # B 4 26 ## " ! !E B 0 # C# ##D +# # •Raw materials •Human resources •Information (e.g. customer taste & profile) •Financial resources •Equipment •Products •Services •Employee behavior •Profit/losses •Waste •Pollution •Employee layoffs 0 # C# ##D +# # •Raw materials •Human resources •Information (e.g. customer taste & profile) •Financial resources •Equipment •Products •Services •Employee behavior •Profit/losses •Waste •Pollution •Employee layoffs : K D W L V WK H R S HQ V \ V WHP S HUV S HFWL Y H R I R UJ D Q L ] D WL R Q D O HI I HFWL Y HQ HV V " • , W P HDQV RU J DQL] DWLRQV QHHG F RQWLQXRXV H[ F KDQJ HV ZLWK WKHLU HQY LU RQP HQW LQ IDF W RU J DQL] DWLRQV F DQQRW H[ LVW ZLWK WKHLU HQY LU RQP HQWV • 2U J DQL] DWLRQV GU DZ WDQJLEOH H J  SHRSOH DQG P DWHU LDO DQG LQWDQJLEOH H J  LQIRU P DWLRQ U HVRXU F HV WKH\ QHHG WR DWWDLQ WKHLU J RDOV • 7 KLV LV ZK\ RU J DQL] DWLRQV DU H RIWHQ F DOOHG RSHQ V\VWHP V (textbook, pp.6-7) 0 # C# ##D +# # •Raw materials •Human resources •Information (e.g. customer taste & profile) •Financial resources •Equipment •Products •Services •Employee behavior •Profit/losses •Waste •Pollution •Employee layoffs 0 # C >5 8 0 2 D +# # •Raw materials •Human resources •Information (e.g. customer taste & profile) •Financial resources •Equipment •Production •Marketing •Technology •(e.g. work methods, equipment) •Communication •Reward systems •Products •Services •Employee behavior •Profit/losses •Waste •Pollution •Employee layoffs : K D W G R HV D Q R S HQ V \ V WHP FR Q V L G HU" • $ Q R SHQ V\VWHP FR Q VLG HUV KR Z Z HOO DQ R UJ DQ L] DWLR Q I LWV LQ WR LWV HQ YLUR Q PHQ W • $ Q R SHQ V\VWHP DOVR FR Q VLG HUV KR Z Z HOO DQ R UJ DQ L] DWLR Q WUDQ VI R UPV LQ SX WV LQ WR R X WSX WV * X HVV Z KDW WKLV LV FDOOHG " (textbook, pp.6-7) = # ?'4 ## > $ 7 # . . . * $ 2 " @ : K D W G R HV D Q R S HQ V \ V WHP FR Q V L G HU" • $ Q RSHQ V\VWHP F RQVLGHU V KRZ ZHOO DQ RU J DQL] DWLRQ ILWV LQWR LWV HQY LU RQP HQW • $ Q RSHQ V\VWHP DOVR F RQVLGHU V KRZ ZHOO DQ RU J DQL] DWLRQ WU DQVIRU P V LQSXWV LQWR RXWSXWV 7 KLV LV F DOOHG R S HUD WL R Q D O HI I L FL HQ F\ • 7 KH RSHQ V\VWHP DSSU RDF K KLJ KOLJ KWV WKH LQWHU GHSHQGHQF H DP RQJ VW Y DU LRXV LQWHU QDO VXE V\VWHP V WKDW IXQF WLRQ DV D ZKROH WR DF KLHY H D VHW RI J RDOV (textbook, p.7) How organizational effectiveness is defined today? + + 7 ; * " ' " ! % " % (textbook, p.5-6) " / : K D W L V WK H R UJ D Q L ] D WL R Q D O O HD UQ L Q J S HUV S HFWL Y H R I R UJ D Q L ] D WL R Q D O HI I HFWL Y HQ HV V " • , W LV DQ H[ WHQVLRQ RI WKH RSHQ V\VWHP SHU VSHF WLY H ZKLF K IRF XVHV RQ NQRZOHGJ H DV DQ LQSXW DQG DQ RXWSXW DQG KRZ ZHOO WKH RU J DQL] DWLRQ P DQDJ H LWV NQRZOHGJ H WU DQVIRU P DWLRQ SU RF HVV L H N QR Z OHG JH P DQDJHP HQW (textbook, pp.7-8) Knowledge management process . Q R Z OHG J H DFT X LVLWLR Q (hire the best marketer, own employees, competitors’ best practices) (internal KM intranet, social gatherings) (document as as standard operations procedure “SOP”) . Q R Z OHG J H VWR UDJ H . Q R Z OHG J H VKDULQ J . Q R Z OHG J H X VDJ H (apply knowledge in daily operations) : K D W L V WK H R UJ D Q L ] D WL R Q D O O HD UQ L Q J S HUV S HFWL Y H R I R UJ D Q L ] D WL R Q D O HI I HFWL Y HQ HV V " • , W LV DQ H[ WHQVLRQ RI WKH RSHQ V\VWHP SHU VSHF WLY H ZKLF K IRF XVHV RQ NQRZOHGJ H DV DQ LQSXW DQG DQ RXWSXW DQG KRZ ZHOO WKH RU J DQL] DWLRQ P DQDJ H LWV NQRZOHGJ H WU DQVIRU P DWLRQ SU RF HVV L H NQRZOHGJ H P DQDJ HP HQW • 7 KH NQRZOHGJ H IRF XV LV LP SRU WDQW E HF DXVH NQRZOHGJ H LV DQ RU J DQL] DWLRQ V XQLT XH LQWHOOHF WX DO F DS LWDO , W DOORZV DQ RU J DQL] DWLRQ WR RXWSHU IRU P LWV U LY DO L H FRPSHWLWLYH FRPSHWLWLYH D G YD Q WD J H (textbook, pp.7-8) Characteristics of an organization’s competitive advantage 9 DOXDE OH Helps a firm to maximize opportunities and minimize threats in the external environment environment 5 DU H Not easily available to competitors ' LIILF XOW WR LP LWDWH Other firms cannot easily create a similar resource (textbook, p.8) 1 RQVXE VWLWXWDE OH Other firms cannot find alternative resources to knowledge Illustration: Organizational learning perspective BYD, or “Build Your Dream”, was set up by Wang Chuanfu as a manufacturer of mobile phone batteries in 1995 In 2003, BYD bought a 77% shareholding in Shaanxi’s Qinchuan Auto Co. BYD Auto was then established Wang wants to build BYD into the world' biggest car s company by 2025 Opportunities in the external environment Reduction of greenhouse gases emission Rising price of petroleum 2010 Nissan Leaf Toyota Prius Hybrid Toyota Rave EV Is BYD an effective organization to enter into the US US electric vehicle market? / Through the use of BYD’s knowledge in rechargeable battery!! BYD’s knowledge management process . Q R Z OHG J H DFT X LVLWLR Q •BYD own knowledge as the world’s No2 rechargeable battery marker •Hire top engineers •Reverse engineering Document in: •SOP •patents . Q R Z OHG J H VWR UDJ H . Q R Z OHG J H VKDULQ J •R&D sessions sessions in reverse engineering . Q R Z OHG J H X VDJ H •Development of EV Through the use of BYD’s knowledge in rechargeable battery!! Battery is a critical success factor in the electric vehicle industry Knowledge in rechargeable battery gives BYD a competitive advantage 9 DOXDE OH Helps BYD maximize opportunities and minimize threats in the external environment environment 5 DU H Not easily available to competitors (Nissan, Toyota) Toyota) ' LIILF XOW WR LP LWDWH Toyota and Nissan firms cannot easily create a similar rechargeable battery 1 RQVXE VWLWXWDE OH Toyota and Nissan cannot find alternative resources to knowledge # 4 5# ZKDW V E HHQ DF F RP SOLVKHG VLQF H     DW %< ' H[ WU DRU GLQDU \ LV 7 KHU H V QR T XHVWLRQ WKDW Illustration: Open system (BYD) 0 # C >5 8 0 2 D +# # •Raw materials •Human resources (e.g. top engineers) •Information (knowledge in battery) •Financial resources (Buffet) •Equipment •Production •Technology •(e.g. work methods, equipment) •Reverse engineering •Products (EV) •Profit/losses •Lower pollution / How organizational effectiveness is defined today? + + 7 ; * " ' " ! % " % WH[WERRN S " / : K D W L V WK H K L J K S HUI R UP D Q FH Z R UN S UD FWL FHV S HUV S HFWL Y H R I R UJ D Q L ] D WL R Q D O HI I HFWL Y HQ HV V " • 7 KH + 3 : 3 SHU VSHF WLY H E HJ LQV ZLWK WKH LGHD WKDW K X P DQ F DS LWDO LV DQ LP SRU WDQW VRXU F H RI F RP SHWLWLY H DGY DQWDJ H IRU RU J DQL] DWLRQV 7 KH P RU H VRXU F HV RI F RP SHWLWLY H DGY DQWDJ H DQ RU J DQL] DWLRQ KDV WKH E HWWHU LW F DQ RXWSHU IRU P LWV U LY DOV • + XP DQ F DSLWDO P HDQV WKH NQRZOHGJ H VNLOOV DQG DE LOLWLHV WKDW HP SOR\HHV SRVVHV •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•+ LJ K P R WLYDWLR Q •+ LJ K M R E VDWLVIDFWLR Q •+ LJ K R UJ DQ L] DWLR Q DO FR P P LWP HQ W // How organizational effectiveness is defined today? + + 7 ; * " ' " ! % " % WH[WERRN S " / : K R D UH V WD N HK R O G HUV " • 6 WDNHKROGHU V LQF OXGH LQGLY LGXDOV RU J DQL] DWLRQV DQG RWKHU HQWLWLHV WKDW DIIHF W RU DU H DIIHF WHG E \ WKH RU J DQL] DWLRQ V RE M HF WLY HV DQG DF WLRQV • 6 WDNHKROGHU V LQF OXGH DQ\RQH ZLWK D VWDNH LQWHU HVW LQ WKH F RP SDQ\ HP SOR\HHV VKDU HKROGHU V VXSSOLHU V ODE RU XQLRQV J RY HU QP HQW F RP P XQLWLHV F RQVXP HU DQG HQY LU RQP HQWDO LQWHU HVW J U RXSV HWF (textbook, p.8) / : K D W L V WK H V WD N HK R O G HU S HUV S HFWL Y H R I R UJ D Q L ] D WL R Q D O HI I HFWL Y HQ HV V " • & RP SDQLHV P XVW WDNH LQWR DF F RXQW KRZ WKHLU DF WLRQV DIIHF W WKH VWDNHKROGHU V 7 KLV U HT XLU HV RU J DQL] DWLRQV WR XQGHU VWDQG P DQDJ H DQG VDWLVI\ WKH LQWHU HVW RI WKHLU VWDNHKROGHU V • 7 KH VWDNHKROGHU SHU VSHF WLY H E XLOGV RQ WKH RSHQ V\VWHP SHU VSHF WLY H RU J DQL] DWLRQV LGHQWLI\ SHRSOH DQG VRF LDO HQWLWLHV LQ WKH LQWHU QDO DQG H[ WHU QDO HQY LU RQP HQW • : KDW DU H VRP H WKH GHF LVLRQV 0 F ' RQDOG KDV WDNHQ WR GHDO ZLWK WKH VWDNHKROGHU V LQWHU HVWV" (textbook, pp.9-10) / & RQVXP HU V SDU HQWV ( QY LU RQP HQWDOLVWV ( T XDO RSSRU WXQLW\ VXSSRU WHU V / DE RU XQLRQV  HP SOR\HHV 0 F' RQ D O G V V WD N HK RO G HU V 0 F' RQ D O G V D FWLRQ V / & RQVXP HU V SDU HQWV ( QY LU RQP HQWDOLVWV ( T XDO RSSRU WXQLW\ VXSSRU WHU V / DE RU XQLRQV  HP SOR\HHV 0 F' RQ D O G V V WD N HK RO G HU V 0 F' RQ D O G V D FWLRQ V / HVV IDWW\ IRRG VDODGV KHDOWK\ HDWLQJ 5 HF \F OH P DWHU LDOV + LU H P LQRU LWLHV HOGHU O\  KDQGLF DSSHG 0 LQLP XP ZDJ H ZRU NLQJ KRXU V By the end of this lecture, you should be able to: 1. explain the impact of OB on organizations 2. define organizational effectiveness 3. explain with illustrations the four perspectives of organizational effectiveness The problem is that the theory of OB is not that difficult through application of OB theories in real-life situations that is the challenge! It is the creation of value for yourself =! F= F= F& ! # A1 ! % ! "'A 0 % #! 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This note was uploaded on 01/28/2011 for the course MGMT 121 taught by Professor Karenlee during the Fall '10 term at HKUST.

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