Informal Networks

Advice: Shows whom other depend on to solve problems and provide technical info

Trust: Shows which employees share political info with each other and back each other in a crisis.

Communication: who talks to who about work related matters

*Informal Networks can be revealed through the use of questionnaires. Answers should be cross checked and any answers not confirmed by both parties should discarded.

Five Communication Patterns

1) Imploded Relationships: Departments that have few links to other groups. Employees in these groups spend all their time talking amongst themselves and neglect to form relationships with other in outside groups. Only the most senior employees within these groups have ties to the outside groups.

2) Irregular Communication Patterns: Employees within one groups or department communicate only with other groups or departments but not among themselves.

3) Fragile Structures: Employees in one group or department communicate among themselves and to one other outside group or department only. This can be problematic when the contribution of several groups is necessary to accomplish a common goal.

4) Holes In The Network: Places where relationships are expected but not found.

5) Bow Ties: Occur when many people are dependent upon a single employee but not upon one another. The person at the center of the bow tie has tremendous power and control. If this person leaves the ties between isolated groups can collapse. If the person remains then organizational process is slow.

Effective General Managers

1) Spend most of their time with others.
2) Spend time with many people other than their direct subordinates and bosses.
3) Breadth of topics in their discussions is extremely wide.
4) Ask lots of questions.
5) Rarely make big decisions during conversations.
6) Discussions are filled with humor and off-work topics.
7) Discussions are filled with topics that are unimportant to the business.
8) Rarely give orders in the traditional sense.
9) Attempt to influence other through asking, requesting, cajoling, persuading, and intimidating.
10) React to others initiatives; much of their days are unplanned.
11) Engage in many short and  disjointed conversations.
12) Work long hours.

Agenda Setting
*Done on the first 6 months on the job
*Develop plans and strategies for the business
*Focus on short term (1-30 days) and long term (5-20yrs)
*Rely on discussions with others to obtain info
*Use their current knowledge of the business to direct their questioning

Network Building
Build Networks by:
*Doing favors
*Stressing formal relationships
*Moving, hiring, and firing
*Changing of suppliers or bankers
*Lobbying to get certain people into peer positions

Execution
*Call on their entire network to implement their agendas

Organizational Change and Reorganization

Strategic Change: Has an impact on the entire organization.

Incremental Change: Only affects part of an organization.

Reactionary Changes: Made in direct response to an external event.

Anticipatory Changes: Made because senior management believes that change in anticipation of future events will provide competitive advantage.

Charismatic Leaders

The informal side of an organization
Historical examples of: Dr. Martin Luther King, Hitler

Envisioning
*Creates a picture of a desired future state which people can identify with and generates excitement.
    *Picture needs to be meaningful, worthy of pursuit, and credible
    *Picture is communicated through articulation, expectations, and demonstration of behaviors

Energizing
*Direct generation of energy; providing motivation to act
    *Achieved through demonstration of energy in direct contact with many individuals within an organization

Enabling
*Psychologically helping people to act or perform in the face of challenging goals.
    Achieved by:
    *Empathy: listening to, understanding, and sharing the feelings of those in the organization.
    *Expressing support for individuals
    *Expressing confidence in individuals

Limitations of the Charismatic Leader
*Unrealistic Expectations: Vision may be unrealistic or unattainable, can backfire for the leader
*Dependency or Counter dependency: Individuals or the entire organization may become dependent on the leader for direction or individuals may waste time trying to disprove the leader.
*Reluctance to disagree: Individuals may become reluctant to disagree with the leader resulting in conformity.
*Need for continuing magic: Leader may become trapped by the very charisma he/she provides. May cause the leader to act in ways that are not functional or lack further charisma. This may cause disbelief in the leader.
*Potential feelings of betrayal: When things do not work out for the leader the way he/she envisioned followers may feel betrayed.
*Disenfranchisement of next levels of management: The next levels of management lose power to the charismatic leader.
*Limitations of Range: Managements ability to deal with issues is limited to the time, energy, expertise, and interest of the leader.

Instrumental Leadership

The formal side of an organization

Three Elements of Behavior

1) Structuring: Leader invests time in the creation of teams that have the required competence to implement re-orientation.
2) Controlling: The creation of systems and processes to  measure, monitor, and assess behavior and results and to administer corrective action
3) Rewarding: Administration of both rewards and punishments contingent upon the degree to which behavior is consistent with the requirements of change.

Mundane Behaviors used to shape perceptions in support of the change effort
*Allocation of time - calendar management
*Asking questions - following up
*Shaping of physical settings
*Public Statements
*Setting agendas of events or meetings
*Use of events to push change efforts
*Summarization - post hoc interpretation of what occurred
*Creating heroes
*Use of humor, stories, and myths
*Small symbolic actions including rewards and punishments

Institutionalizing the Leadership of Change

Leveraging the Senior Team
*Objective: providing resources
*Symbolic: Showing the organization that the members of the senior team are extensions of the leader. Accomplished through mundane behaviors, titles, and visual presence of team members in ceremonial roles.

Development and Composition of the Senior Team
*Must consist of members who agree that change is necessary for the success of the organization.
*Must consist of members with a broad range of skills and management styles.

Inducement of Strategic Anticipation
*Senior team must take on the task of anticipatory thinking for the leader.
*Leader must ensure learning within the senior tem through exercises, simulations, and seminars.

Broadening Senior Management
*Rites of passage: Creating symbolic events that help these individuals feel like a part of senior management
*Senior groups: Creating structures (councils, boards) to maintain contact with this group.
*Participation in planning change: Involving these people in planning anticipatory changes.
*Intensive Communication: Maintaining a constant stream of open communication to and from this group.

Developing Leadership within the Organization
*Definition of managerial competence: Determining the skills, capabilities, and capacities needed to lead effectively.
*Sourcing managerial talent: Involvement in the hiring process.
*Socialization: Teaching the workings of the organization social system.
*Management Education
*Career Management: Exposing candidates to a broad range of experiences within the organization.
*Seeding: Thoughtful placement of potential leaders throughout the organization.

Scientific Management

Management and Labor working together for mutual benefit.

What Scientific Management Is Not
Scientific management is not any efficiency device, not a device of any kind for securing efficiency: nor is it any bunch or group of efficiency devices. It is not a new system of figuring costs; it is not a new scheme of paying men- it is not a piecework system; it is not a bonus system; it is not a premium system; it is no scheme for paying men; it is not holding a stop much on a man and writing things down about him; it is not time study; it is not motion study nor an analysis of the movement of men: it is not the printing and ruling and unloading of a ton or two of blanks on a set of men and saying, "Here's your system; go use it." It is not divided foremanship or functional foremanship; it is not any of the devices which the average man calls to mind when scientific management is spoken of. The average man thinks of one or more of these things when he hears the words "scientific management" mentioned, but scientific management is not any of these devices. I am not sneering at cost-keeping systems, at time study, at functional foremanship, nor at any new and unproved scheme of paying men, nor at any efficiency devices, if they are really devices that make  for efficiency. I believe in them, but what I am emphasizing is hat these devices in whole or in part are not scientific management; they are useful adjuncts to scientific management, so are key also useful adjuncts of other systems of management.

An Example of What Scientific Management Is Not
What would Schmidt's answer be if he were talked to in a manner which is usual under the management of "initiative and incentive?" Say, as follows:
Now, Schmidt, you are a fast-class pig iron handler and know your business well. You have been handling at the rate of 12% tons per day. I have given considerable study to handling pig iron, and feel sure that you could do a much larger day's work than you have been doing. Don't you think hat if you really tried you could handle 47 tons of pig iron per day, instead of 12 1\2 tons?
What do you think Schmidt's answer would be to his?

Benefits of Scientific Management
The great revolution that takes place a the mental attitude of he two parties under scientific management is hat both sides take their eyes off the division of the surplus as the all-important matter, and together turn their attention toward increasing the size of the surplus act this surplus becomes so large that it is unnecessary to quarrel over how it shat be divided. They come to see that when they stop pulling against one another, and instead both turn and push shoulder to shoulder in the same direction, the size of the surplus created by their joint efforts is truly astounding. They both realize that when they substitute friendly cooperation and mutual helpfulness for antagonism and strife they are together able to make this surplus so enormously greater than it was in the past that there is ample room for a large increase in wages for the workmen and an equally great increase a profits for the manufacturer. This, gentlemen, is the beginning of the great mental revolution which constitutes the first step toward scientific management ......

Training under Scientific Management
Schmidt stated to work, and all day long, and at regular intervals, was told by he man who stood over him with a watch, "Now pick up a pig iron and walk. Now sit down and rest. Now walk now rest," etc. He worked when he was told to work, and rested when he was told to rest, and at. half-past five in the afternoon had his 47% cons loaded on the car. And he practically never failed to work at this pace and to the task that was set him during the three years that he writer was at Bethlehem. And throughout this tune he averaged a little more than $1.85 per day, whereas before he had never received over $1.15 per day, which was he ruling rate of wages at the time in Bethlehem. That is, he received 60 percent higher wages than were paid to other men who were not working on task work. One man after another was picked out and trained to handle pig iron at he rate of 47 tons per day until all of the pig iron was handled at this rate, and the men were receiving 60 percent more wages than other workmen around them

Taylor's Definition of a First Class Worker
Now, what I mean by "first-class" men is set before you by what I mean by first-class horses. I mean that there are big, powerful men suited to heavy work, just as dray horses are suited to the coal wagon, and I would not use a man who would be first class for this heavy work to do light work for which he would be second class, and which could be just as well done by a boy who is first class for this work, and vice versa. What I want to make clear is that each type of man is first class at some kind of work, and & you will hunt far enough you will find some kind of work hat is especially suited to him.
 

Harvard Cases

Managing Xerox's MDC
1) From the perspective of Informal Network Analysis, Tom Gunning was key to John Clendenin's success or failure upon starting with Xerox. What network(s) was Tom Gunning a key player in?
        Trust.
2) What to qualities indicated rank or prestige of a management position to John Clendenin?
        Size of budget and staff.
3) Was it okay for Clendenin to charge $400,000 for a service that was costing him $200,000 to provide?
        No because he was profiting from his own company.
4) Which of the 5 common communication patterns do we see emerge around John Clendenin in the MDC?
        Bow-Tie
5) What decision should Clendenin make about hi future with the company?
        Quit.

Charlotte Beers
1) In what ways have the expectations of customers in the advertising industry changed over time?
        Customers are demanding more for their money (Lower cost and greater service).
2) Which type of change is Charlotte Beers being brought in to manage at Ogilvy? How did you determine this?
        Recreation. Because this change is both reactionary and strategic.
3) Does Charlotte Beers possess the three qualities of a charismatic leader? Evidence?
        Yes, because she energized and enabled members of her organization to see her vision of brand stewardship.
4) Is Charlotte Beers and instrumental leader? Evidence?
        Yes, through the construction of the senior management team.
5) In what ways does Charlotte Beers "Institutionalize the Leadership of Change" at Ogilvy? (Mostly focus on how she went about "Leveraging the Senior Team" and then how she proceeded to "Broaden Senior Management")
        Through the meetings she organized and the off-site rites of passage she constructed.

Karen Leary
*Ted Chung represents a bow-tie in the informal network between Leary and the Taiwanese clients due to the language barrier.
*Leary should hire more Taiwanese speaking brokers to limit Chung's power when it comes to the Taiwanese market.

Manager's Brain Under the Workman's Cap
*Unions used the threat of social ostracism tot control the personal behavior of their workers.
*Unions controlled access to labor via managements need for skilled labor in iron mills.
*The Unions mistreatment of African American workers was taken advantage of by management whenever the unions went on strike.
*The job of puddlers became obsolete with the coming of steel along with managements decreased need for skilled labor.