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Reminders 1. Both “empty” and “full” slides are now available at the course website. 2. Individual paper proposals may be submitted at any time, but the sooner the better. 3. Sending you a mid-term advisory this week or week-end. 4. New course announcement! Managing Across Cultures BUSI 197 (1.5 credits – Mod IV) * Prerequisites BUSI 100 and BUSI 150 with grades of C or better Announcing a new mod-length course being offered for the first time during Mod IV that provides hands-on understanding of the opportunities and challenges involved in working across geographic and cultural boundaries • Highlights include: – Investigation of current cross-cultural management research and theory – Interaction with students from universities around the world, working with you in virtual teams – In-class sessions that build upon virtual team interactions using a variety of case studies & interactive exercises Information Technology and Control BA 152 Characteristics of Organizations: BA 152 Perspective Environment Cultures GOALS STRATEGIES STRUCTURES TECHNOLOGIES SYSTEMS People Evolution of Organizational Applications of Information Technology TOP (strategy, plans, non-programmed) 3. Strategic Weapon INTERNAL • Intranets • ERP • Knowledge Management EXTERNAL • Extranets, EDI • Integrated Enterprise •E-Business 2. Business Resource • Management Information systems MANAGEMENT • Decision Support Systems LEVEL • Executive information systems 1. Operations • Management control • Transaction processing systems systems • Data warehousing • Balanced Scorecard LOWER LEVEL LOW SYSTEM COMPLEXITY Direction of Information System Evolution HIGH Data, Information, & Control • Data - Input from any communication channel • Information - Data that alters or reinforces understanding • Control - Evaluation of information that provides the basis for future actions Information and Data Information High Low Data High Information and Control Control High Low Information High Control Systems: The Key Pieces Performance Standards Performance Measures Budgets Job Descriptions Quality Levels Production Goals Cash-on-hand Performance Appraisals Process Inspections Product Counts Comparison Actions (if necessary) Major Control Approaches • Market Control - control by prices, competition, markets, and exchanges • Bureaucratic Control - control by rules, standards, hierarchy, and authority • Clan Control - control by culture, values, tradition, and trust Control Systems: What gets controlled and how? How Market Bureaucracy Clan Input Starting Salaries Budgets Process Material Costs Policies Selection Criteria Norms Output Prices Appraisals Quality What Supervisory Control Strategies Input Control - control by virtue of selection criteria and training Behavior Control - control by observation of employee actions Output Control - control by the amount of work completed Supervisory Control Strategies What works best when? Are Tasks Structured? YES YES Are Outcomes Measurable? NO NO Use behavior and/or output control Use input and/or output control Use behavioral control Use input, clan, and/or self-control Developing Effective Control Systems 1. Involve employees in the process, as appropriate 2. Focus on results, not simply on measurement 3. Keep the system as simple as possible 4. Insure timely information to and from the system Developing Effective Control Systems 5. Make sure the system fits with the firm’s culture, strategy, and structure 6. Anticipate second-, third, and fourth-order effects Effective Control Systems: Keep the following in mind 1. What gets measured is what will get done! 2. System costs must be considered. 3. Too much information can be as bad as too little. 4. You can’t make just one decision. The Balancing Act Control Systems Control Autonomy Knowledge Management Types of Knowledge • Consider two different types of knowledge important to organizations. – Explicit Knowledge – Implicit Knowledge Types of Knowledge • Explicit Knowledge – Knowledge that is formal and systematic. – Knowledge that can be formally taught to someone. – Knowledge that can be communicated and shared. – Examples? Types of Knowledge • Tacit (implicit) Knowledge – Knowledge that is highly personal. – Knowledge that is acquired as a function of experience and practice. – Knowledge that is hard to formalize. – Knowledge that is difficult to communicate, because “We often know more than we can tell.” – Examples? Sharing Knowledge: The knowledge spiral Tacit TO Explicit ARTICULATION Tacit SOCIALIZATION Metaphor Analogy Model INTERNALIZATION INSTRUCTION/ COMBINATION/ INNOVATION FROM Explicit Redundancy Experience Questioning Two Approaches to Knowledge Management For Explicit Knowledge Provide high-quality, reliable, and fast information systems for access of codified, reusable knowledge Two Approaches to Knowledge Management People-to-documents Knowledge Managemen t Strategy Develop an electronic document system that codifies, stores, disseminates, and allows reuse of knowledge. Technology Invest heavily in information technology, with a goal of connecting people with reusable codified knowledge. Mechanisms Data warehousing Knowledge mapping Electronic libraries Intranets, networks Two Approaches to Knowledge Management For Tacit Knowledge Channel individual expertise to provide creative advice on strategic problems Two Approaches to Knowledge Management Person-to-person Knowledge Managemen t Strategy Technology Mechanisms Develop networks for linking people so that tacit knowledge can be shared Invest moderately in information technology, with a goal of facilitating conversations and the exchange of tacit knowledge Dialogue Learning histories and storytelling Communities of practice Communities of Practice • Collections of individuals – Bound together by informal relationships – Sharing similar work roles – Sharing common work context – Not constrained by geographical, business unit, or functional boundaries Communities of Practice • “Practice” suggests how individuals actually do their jobs as opposed to their formal job descriptions from their firm. Collective Comparisons Purpose? Who What holds How long belongs? it together? does it last? Informal network To collect & pass on information Friends & business contacts Mutual needs As long as people need to connect Formal work group To deliver a product or service Those Job demands reporting to and common manager goals Until the next reorganization Project team To complete a specific task Assigned by senior manager Milestones and project goals Until project is completed Community of practice To build & exchange knowledge Members select themselves Passion, commitment, identification As long as there is interest Communities of Practice • Why should we allow/encourage but not attempt to formally “manage” COPs? 1. 2. 3. 4. 5. 6. They can help drive strategy. They can start new lines of business. They can solve problems quickly. They are able to transfer best practices. They develop professional skills. They can help companies recruit and retain talent. Next Time Organizational Size, Life Cycles, and Decline