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Please make sure to bring all the lecture

notes

(up to week 10) – as I will be summarizing all

the notes today

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LECTURE 10

Amare Michael Desta

Decision Support & Executive Information

Systems:

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Organizational Leadership, Cultures and Process Maturity Closed System View of Org.:

Many different perspectives- Closed system perspective

Organization as instrument to achieve defined goals Efficiency Effectiveness Flexibility / adaptability Job satisfaction

- Four activities follow from the above Complexity and specialization of tasks Centralization of authority Formalization of jobs Stratification of employment levels

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Closed System View - Criticism

View sees humans as machines Resources are optimised

Not true in all cases Responses fit into the defined plan

Environmental influence seen as only noise

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Open System View of Organizations Interested in both the objectives and

responses to internal and external influences

Organizational activities (Weick) Enactment, selection and retention Results of these are

Understanding of the environment Recognizing problems Diagnosing causes for problems Identifying policies to solve problems Evaluating the efficiency of the policies Selecting priorities for problem solving

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Organizational Learning Model(Daft & Weick)

Three major components- Scanning

Monitoring the environment

- Interpretation Translating observations

- Learning Knowledge about relations between

organization’s state and environment Actions

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Generic Roles for ExecutivesTo achieve the defined goals FOUR differentRoles are needed by executives- Administration

Caretaking role

- Management Concerned with efficiency

- Leadership Setting of a vision and seeing it through

- Governance Stakeholder management

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Organizational Topographies Inactive organization

Tries to avoid problems Waits them to go away

Reactive organization Problem solving organization

Internal environment Interactive organization

Tries to adapt to external environment Development of responses to external environment

Proactive organization Learning to learn better

Adaptive behaviour

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Organizational Learning Organizational learning is needed to

anticipate changes and improve behaviour Situation assessment Problem detection Solution Evaluation of outcome Resulting discovery

The learning is not always beneficial in practice E.g. improperly simplified causal models

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Theory of Reasoning, Learning and Action Two major inhibitions to learning

1)Distortion of information Quality of decisions affected

2)Lack of receptivity to feedback

Types of organizational learning Single-loop

Present policies to achieve present goals No questioning of goals

Double-loop New understanding developed

Goals are put under scrutiny

Poor performance organizations usually use single-loop learning

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Theory of Reasoning, Learning and Action (2) There are other inhibitions to learning

Distancing Not accepting responsibility

Disconnectedness Limited information about theories in use and the

associated actions

Five dilemmas Incongruity Inconsistency Ineffectiveness Disusability Unobservability

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Learning Organization “Organization where people continually expand their

capacity to create results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning how to learn together” (Peter Senge)

Five disciplines enable this learning Systems thinking Personal mastery through lifelong learning Shared mental models of markets and competitors Shared vision Team learning

Lack of capability in one of the five disciplines is called a learning disability

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11 Laws of Systems Thinking1. Future problems come about because of what were

presumed past solutions2. Every action has a reaction3. Short-term improvements lead to long-term difficulties4. Easy solution is no solution at all5. Solution may be worse than the problem6. Quick solutions lead to more problems7. Cause and effect not necessarily closely linked8. Best actions not obvious at first9. Low cost and high effectiveness need not to be trade-

offs10. The entirety is more than the sum of its parts11. Entire system must be considered together

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How to Build a Learning Organization? Leaders must be

Designers Stewards Teachers

Three pragmatic needs Meaning Management Measurement

Five building blocks Systematic problem solving process Experimentation Learning from past mistakes Learning from others Transferring the knowledge through organization

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Assess situation and select problem for resolution

Problem definition

Generate solution options

Evaluate options and select preferred option

Implement solution

Evaluate solution

Problem Solving Process

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Organizational Cultures Culture closely related to learning

Socially transmitted behaviour patterns Critical success factors of organizational character

Shared vision Motivational faith Distinctive skills

Change in culture must be controlled Reasons for failure

No shared vision of impending crisis No shared vision of a way out of crisis Culture change produces wrong results People learn in a wrong way

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Changing Culture Change is often resisted even though it is

known to be needed People do not know in which way or how to change Poor abilities at double-loop learning

Past competence a path to success Stereotypical thinking Fall into ideological routines

Multiphase approach to change Access corporate culture Identify approaches to culture change Negotiate a shared vision Deploy the shared vision

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Culture Clash Three different cultures

1. Corporate culture stresses loyalty to organization2. Professional culture emphasises given knowledge

- Loyalty to profession greater than loyalty to organization3. Social culture represents the values of individuals

Clash areas Specialization

Managers <-> Employees Overspecifying practice

Underspecifying the end Employees want autonomy

Tight supervision Formalization of control Principles more important than practice Short-term profits vs. ethics

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Culture and leadership A number of studies discuss the

interaction of culture and leadership and the role of these in creating excellence

E.g Hickman and Silva suggest strategy and culture as foundations for excellence They further identify six “new age skills”

aggregated under three more generic (need) categories

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Hickman and Silva The need to forge a strong foundation for

excellence through: creative insight sensitivity

The need to integrate organizational and individual skills through:

vision and patience

The need for adaptation through: versatility and Focus

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Kotter and Heskett Kotter and Heskett identified several important

cultural realities: Organizational culture has a significant impact on the

long term performance of an organization The importance of culture will increase in the future Organizational cultures that are debilitating to long

term performance are not uncommon Organizational cultures can be changed to allow

enhanced performance

Effort is primarily concerned with identification of the characteristics of cultures that will be most supportive of excellence performance.

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Leadership and management: Studies of individual and organizational leadership

Covey’s SEVEN habits of effective people First three relate to individual concerns Next three relate to group and

organizational issues The last concerns learning and renewal counterbalance independence and dependence relations

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Covey Covey also identifies THREE primary

traits of effective leaders (a) integrity (b) maturity and (c) abundant mentality and THREE types of power:

1. Principle-centered power, based on honor2. Utility power, based on fairness3. Coercive power, based on fear

Related to various contexts for learning

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Covey FOUR paradigms that could be

used as a basis for leadership:1. The scientific management

paradigm 2. The human relations paradigm 3. The human resources paradigm 4. The principle-centered leadership

paradigm

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Badaracco and Ellworth Badaracco and Ellworth’s identified THREE

leadership philosophies based on a set of fundamental assumptions about human nature and the resulting behavior patterns of people in organizations

1. Political leadership 2. Directive leadership 3. Value-driven leadership

Philosophies are also provided with suggestions for operational management and task control

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Rothschild - identified FOUR major leadership roles1) Risk-takers, often creators of an organization

who have the dedication and talent to implement a strategic vision

2) Care-takers, who nurture an organization beyond its growth stage into a healthy maturity

3) Surgeons, who examine diseased portions of an organization and correct or remove those portions

4) Undertakers, who harvest and/or merge the organization in order to mercifully lay to rest an unsalvageable organization & rescue those portions that are capable & in need of rebirth in a new form

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Kotter Kotter has distinguished between

leadership and management Kotter indicates that leadership involves

moving people from one state to a better state without transgressing on the rights of other

To do this, leadership involves three principal activities that roughly correspond to the definition, development, and deployment effort in systems engineering :

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Kotter continues…1. Agenda creation. Direction setting is needed toestablish a future vision and strategies for theneeded changes to enable realization of the vision.2. Developing human networks. Communication ofthe vision and developing a set of shared assumptionsand understanding the vision are needed to achievean alignment of people who are committed toorganizational progress.3. Action implementation or execution. Motivatingand inspiring people to move in directions appropriate toachieve the strategic vision despite the politicalchallenges and bureaucratic barriers.

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Cultural Framework Models

Sage introduces two separate works on cultural frameworks Bolman and Deal’s (1991), and Bergquist (1992).

They all are built for a university environment.

These are suggested to be applicable in a more general organizational setting.

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Bolman and Deal’s Cultural Framework Model Bolman and Deal (1994) identify FOUR

frameworks for modeling organizational culture:

1) structural framework; formal rationality and analytical methodologic approaches are preffered for organizing

2) human relations framework; purpose of organization is support for the people in the organization

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Dolman and Deal (cont.)3) political framework; organization viewed as a

coalition of diverse interests - most of which based on differing values and perceptions of reality

4) symbolic framework; sees that meaning, or interpretation, of the same event across subcultures will generally be very different

ambiguity in organization -> formal rational analysis becomes difficult -> humans create symbols that become surrogates for more fundamental and meaningful events.

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Bergquist’s Cultural Framework

Berguist (1992) divides organizational cultures into FOUR:1) collegial culture; sees diversity of

perspective and autonomy of effort -> supports academic governance -> supports disciplinary scholarship

and research2) managerial culture; closely associated with junior-

college culture and any very strongly top-down leadership

-> acceptance of detailed plans expected

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Bergquist (cont.)3) developmental culture; orgzns and their

processes designed to effectively accommodate needs of university (organization)

-> supports fulfillment of university (organization) mission

4) negotiating culture; very concerned with personal and financial needs of faculty and staff

-> change takes place through confrontational efforts and effective use of scarce resources - often includes bargaining efforts

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Cultural Dynamics Model of Oraganizational Forms This model is developed by Henry Minzberg

and aims to describe organizational forms, to help design effective organizations.

FIVE mechanisms describe work coordination approaches in industrial organizations:

1. Mutual adjustment2. Direct supervision3. Standardization of work processes4. Standardization of skills and knowledge5. Standardization of norms.

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Process maturity Process models

1) organizational lifecycle process maturityrepresents the extent to which specific processes

areexplicitly defined, managed, measured, controlledand effective in achieving their intended purpose

2) disciplined process, teams with common values,systems management infrastructure, strongLeadership process mature organization

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Crosby five stages of development of quality

maturity inspiration for the other maturity

models

1. Uncertainty2. Awakening3. Enlightment4. Wisdom5. Certainty

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Capability Maturity Model (CMM) originally developed by the

Software Engineering Institute (SEI) at Carnegie-Mellon University

it provides software organizations with guidance on processes for developing and maintaining software

five levels with key process areas

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1. Initial level the process is not under statistical

measurement control at even the operational level, and no systematic process is possible no key processes

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2. Repeatable level

a measure of thorough operational level product control is achieved through metrics associated with cost, schedule, and product configuration changes

basic program management processes are established

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2. Repeatable level (cont.) Requirements Management SW Project Planning SW Project Tracking and Oversight SW Subcontract Management SW Quality Assurance SW Configuration Management

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3. Defined level the process has been understood and

specified so that operational quality control is able to yield products with predictable costs and performance schedules

the organization has a set of standardized, consistent, and repeatable processes

process management is interactive and processes are well integrated five levels with key process areas

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3. Defined level (cont.)

Organizational Process Focus Organization Process Definition Training Programs Integrated Software Management Software Product Engineering Intergroup Coordination Peer Reviews

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4. Managed maturity level comprehensive process-related

measurements are possible and improvements in product quality are possible through the understanding and control

interactive process management processes are well in place Quantitative Process Management Software Quality Management

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5. Optimizing level the highest possible level of maturity

is reached the organization is able to make

continuous improvements in products, services and processes

process management is highly proactive

there are also interactive and reactive controls and measurements

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5. Optimizing level (cont.)

Defect Prevention Technology Change Management Process Change Management

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Key process areas Each of the key process areas have a set

of SIX common features associated with them.

1. Goals2. Commitment to perform3. Ability to perform4. Activities performed5. Systematic measurement and analysis

efforts6. Implementation verification

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Process Maturity: Conclusion The majority of organizations in

practice today are at levels 1 and 2, with very few at levels 3, 4, and 5

There are only few programs which are at levels 4 and 5; the further research will focus on them and the evolution of the CMM at these higher maturity levels