Appunti del corso di "Organization design and people management in the tourism industry", Appunti di Organizzazione E Pianificazione Del Turismo

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ORGANIZATION DESIGN AND PEOPLE MANAGEMENT IN THE TOURISM INDUSTRY (ODPM) DARIA SARTI daria.sarti@unifi.it Office hours: D6 3.63 room (time available on the website) Welcome appointment 10 October 10.15 explanation of program of the course Design INTRODUCTION TO THE COURSE - 9 credits 72 hours - Wed. 14.15-15.45 - Fri. 10.15-13.30 - Last class 7th December - Class schedule on Moodle - Friday 12 October no class TEXTBOOKS Mullins L.J. and Dossor P., Hospitality Management and Organizational Behaviour, Pearson, 2013 (5 edition) cap. 1-4-5-6-7-10 Nickson D., Human Resource Management for the Hospitality and Tourism Industry, Routledge, 2013 (2 edition) cap. 1-2-3-5-7-8-9-13 Extra Material Exercise on Moodle password OPDM2018 link https://e-l.unifi.it/ This platform has 2 subscription modalities: with matricula but if you do not have you can enter with “Host modality” just for the first two weeks: HOST_ODPM2018 WHAT WE WILL LEARN Organization design and resource management. the organization is our analysis. To design a good organization. We will talk about resource management. Hospitality industry, tourism and travel. Organization is the focus. Different behaviours. Resource to specific industry. Exam is written 4 questions. Two hours. Max 7.5 point per question. Date of the exams: between 07/01/2019 and 25/01/2019 and between 04/02/2019 and 22/02/2019 Attending students participate more than 70%, group activities and fill the assignment given from the instructor. Written exam has no differences between attending and no. ATTENDING STUDENTS Meet lecture, make visit, meet testimonials, to deepen the class contents examples from teacher, exercises, video, case studies, presentation n class final project, performing exercises, attending students has 0-3 points to increase the final examination for the activities done. 3 assignments will be included in this class: 1) Group assignment. Topic: Organizational culture. Period 19th to 26th October 2) Individual assignment. Topic: Job Analysis and design. Period 2nd to 14th November 3) Group final assignment. Topic to be defined. Period to be defined. To send five days before the exam Attend classes and fill the assignments have to communicate their decision by the 5th October 2018 by filling the attendance form on Moodle (available on line from Wednesday 19 September) METHOD Lectures, Power point presentations, group work, class-discussions on specific case studies provided by the instructor or short videos, gest lectures, students oral presentation. COURSE GUESTS IN PREVIOUS YEARS Eataly, four season hotel, trivago, Tornabuoni, Enic, cooperativa archeologia. This year teacher from European Universities. From Germany, Spain etc. CLASS CONTENT Organization Design - Nature and scope of HI - Organizational goals and structures - Defining management - Nature of leadership - Work, motivation and involvement - Managing the change organization - Organizational culture People management - HRM in tourism and Hospitality ind. - Recruitment and selection - HR development - Reward strategies in Tourism Industry - International HRM - HRM in the event management CLASS RULES - Arrive on time - Telephone off - Do not leave class early - Ask questions if you are confused - Not disturb the others 1. NATURE AND SCOPE OF THE HOSPITALITY INDUSTRY TRAVEL AND TOURISM SECTOR (SOME FIGURES) The host employee is supported by the organisation support, service delivery system (Funny example of the supermarket and cups). The organization must support employee that work in the front line. They should support. All the organisation has to work in order to receive the best from employees. From insights into the natural process of hospitality relating to modern commercial hospitality organization GUERRIER (1999) explains the provision of hospitality as: - Providing basic needs for food, drink and somewhere to sleep - Rewarding hosts by enhanced prestige in the community if they provide lavish hospitality to guests - An exange of mutual benefits of the host and the guests. WALKER suggests that hospitality includes ‘a wide range of businesses each of which is dedicated to the service of people away from home’ with the purpose of being ‘the cordial and generous reception of guests’ (Walker, 2004: 748). For SLATTERY, the purpose of the hospitality organization is commercial, to make a profit not primarily to be hospitable. GENERAL MANAGEMENT THEORY - Managers tends to view the industry as unique and different from others. They are not open to research, to other sectors compared to other organization. (e.g. the Four seasons hotel are not so open, burocratic and close). There is not exchange. - Authors claim that little progress has been made in term of management attitudes, knowledge and thinking and there has been only limited translation of business and management theory from manufacturing to service industries and hotels in particular - The HI differs since it is service related and labour intensive and despite changes (e.g. technology) the essential nature of the industry remains unchanged. Specific kind of variance. There is a coherence between tourism organization and service organization. Is hospitality unique? The context appears as still unexplored by researchers despite it provides a wonderful environment in which to explore current issues in organizational studies and HRM. THE ORGANIZATIONAL SETTING The process of management does not take place in a vacuum but within the context of and organizational setting. The structure, management and functioning of organization will vary because of differences in: - Their nature and type - Goals and objectives → e.g. more oriented to low costs. It depends on the type of organization - External environment - Goods and services supplied - Customers - And the behaviour of people who work in them TWO EXAMPLES OF ORGANIZATION - Conference room → organization research - Alcatraz → prison Different kind of routines, they are both organizations, but they work differently. General aspect and different. Different in procedures and methods of operation. Different in procedures and methods of operations, structure, system and styles of management and orientation and behaviour of members will differ considerably. COMMONS FACTORS IN ANY ORGANIZATION Organizations are diverse and come in all forms, shapes and sizes. Despite differences among organization there are at least four common factors in any work organization: - People - Objectives - Structure - Management An organization is composed by two or more people that have common goals and shared practices and structure in order to reach that goals. They have stimuli by the environments. They interact with the environment. An organization starts when one person can’t do more than one specific tasks. The tasks that any person has, mechanisms, this is the structure. The decision taken to mixed resource in order to reach objectives. Of course, the effects depend of some aspects: - The quality of its people - Its objectives and structure - And the resources available to it Resources have two categories: - No-human, physical assets materials, equipment and facilities. - Human, members abilities and influence and their management Autonomy means that people are already awarded. This as an impact to the structure. ORGANIZATIONAL CHARACTERISTICS OF THE HOSPITALITY INDUSTRY Hotels are not a homogeneous grouping. However, it is possible to summarize a number of organizational and staffing characteristics of hotels in general: - Large number of individuals units - 24 hours – 7 days - High fixed cost, fixed rates of supply and unpredictable demand - Both production and service industry - Production and sales combined on the same premises - Diverse range of customers- variety of needs and expectation - Service supplied direct to customer on the premise - Wide range of service provided simultaneously - High degree of co-ordination needed - Difficulty in measuring performance STAFFING CHARACTERISTICS OF THE HOSPITALITY INDUSTRY: - Managers are expected to demonstrate profiency in technical and craft skills and management areas - Staff may live on the premises (e.g. cruise staff, seasonal workers, temporal position but they are permanent worker, they gain lot of money) - Many different skills are required but there is also a number or unskilled staff - The majority of staff receive low pay - Staff are often expected to work long and unsocial hours - There is large proportion of young, female, part time and agency staff - There is also a high proportion of staff from other countries - Trade union memberships is usually low - There is high mobility of labour within industry and high turnover of staff joining or leaving the industry it is the characteristics which collectively determine the distinctive nature of the hotel industry which in turn shape organizational design and structure, and largely determine managerial policies, procedures and behaviours. Not all the characteristics listed before can be applied to every hotel. The importance of organizational setting and hotels are not homogeneous grouping. Some criteria for classifying hotels: - Location - Purpose of visit - Range of facilities and services - Size of hotel - Class or grade Example1 Tuscany - Familiar - Small company organization - Kind of strategies? Rules? Fixed rules but not so much burocratic, coordination is not needed. Family conduction. Example 2 Abu Dhabi - Different rules, location, all the services are provided, sauna, massages are included, difference level, gerarchical organization, the number of employees increase, standardising, each one has its own goal. THE NATURE OF SERVICE INDUSTRIES Hotel operations are very similar to services organization. Hotel operation combine both productive and service element. Despite hotel operations are not pure service organizations they exhibit many of the basic characteristics common to other service industries: • Consumer a participant in the process (part of the service) • Simultaneous production and consumption (no inventory!) • Perishable capacity (time perishable) • Site selection determined by customer demands • Labour intensive • Intangibility • Difficulty in measuring performance • Lack of ownership ARE SERVICES INDUSTIRES DIFFERENT FROM OTHER INDUSTRIES? Hospitality organization exhibits many of the basic characteristics of service industries and may share many common features (eg., high fixed costs, labor intensiveness, low wages and unsocial working hours). Faces to different companies, anyone has its own specific tasks. This sector needs good manager, technical skills, high degree coordination. Hospitality organizations exhibit many of the basic characteristics • Manufacturing – production is capital-or equipment orientated; technical skills dominate; training will dominate; production results are variable. • Service – production is people oriented, interpersonal skills dominate, education will dominate, service results are subject to even more variation. - More instruments - Series of Activities by which inputs are transformed into output - Suitable form of structure must be designed (E.g. Administrative functions, legal requirements are present in any organization) - Common activities of management (clarification of objectives, planning, organizing, directing and control) have to be applied to a greater or lesser extent - Difference in the application and implementation of common features are (just!) a matter of degree and emphasis. Using the open system model provides a common point of reference. 19/09/2018 WHAT DID WE LEARN? This lesson we are going consider first some points on economy industry. Customer is central in organizational goals and structure. Last class we introduced the industry sector: why tourism is important and make some consideration about the industry, understanding basic concepts such the commons ones. Factors In the same industry: can we find organization and operations in the same team (e.g. in hotel the event manager department, some offices related to tourism visits and so on). It is really a very overlap industry. We learned that: - the hospitality industry has strong links and connection with other industries: leisure, travel and tourism. Whilst the ownership of an organization may suggest that if falls within a particular sector, this narrow view tends to overlook the extent to which the activities overlap. We might have activity overlap in the same organization. - We also understood that despite most of the managers consider tourism as unique, so they manage tourism organization as unique, they share some characteristics with other organizations in general. Managers in hotels and catering tend to view the industry as unique. However, there are distinctive and shared features. Hospitality education is in need of further development and attention to general management theory. Meaning, that even in education we could consider other organizations. We have some theories for example that one of the service management: - we underlined the importance of the quality of the services provided to the customer. Customer is central to the concept. The industry is about being hospitable, which leads to notions of respect, and co-creation, with the customer contributing to the design and nature of experience. Design proper strategies, structure, proper policies in order to have high qualities. - managerial practices are essentials and they always take place in managerial sectors. The nature of operations, and organizational and staffing characteristics call for effective management (management of services) which take place within an organizational setting. In this class we will discuss organizations which boundaries are clear. Organization IS NOT AN INDUSTRY. Just a social unit with its boundaries. We also talk about what an organization is. The basic characteristics of an organization are: it is done by offers, formal person with appeal objectives and shared objective, they work with policies, strategy, organizational support, they are coordinated to reach objectives and that system always related with the external environment (is something we look at from our perspective of the organization). - We also started applying the organizational theory: first of all the OPEN SYSTEM MODEL. We proved that actually it can be applied to tourism and travel organization. The OSM has 3 key elements: 1) provides a common point. Starts from the point because the organization is not a closed system. That’s a theoretical custom. 2) the OSM means that you have inputs, external stimuli, information, request from customers, employees that would like to hire support, resources from outside, the process of transformation and the output provided (services provided, satisfy the customer, the image of the company, responsibility actions and customs) a perspective for a meaningful comparison with other industries. ENVIRONMENTAL INFLUENCES The importance of the external environment of our organization as we said considering an organization as an open system and always has to manage the incoming from outside. External environment is important in this open system. The stimuli came from the outside. Hospitality Organizations are in continual interaction with the external environment of which they are part. In order to be effective, they must respond to opportunities and challenges, risks and limitations. Who is the main activity actor? The top manager and his management. Influences are beyond management control. Indeed, the success in managing environmental influences may grant an effective functioning of operations. They are able to understand what witness are coming from the environment, what are the opportunities arising from the market and they transform the structure of the organization in order to achieve the same objective. They might be very referenced by the influences by the environment (e.g. tax that you have to pay in an area). There might be other kind of influence that has to be controlled by the management (e.g. international relations, pressure groups, policies applied by the EU, local inspections and so on). The organization has to be able to manage all of these aspects in some sectors. Managers take strategic decisions. Hospitality organizations are in continual interaction with the external environment of which they are part. In order to be effective, they must respond to opportunities and challenges, risks and limitations. Manager must control, policies, local authority inspections, he must to be able to manage all of these aspects. The strategic decisions. The best stimolo from the environment which probably deserve more attention, is the growth of technology. TECHNOLOGY The growth of technology has had a huge impact on tourism. Its importance started due to internet development that allowed chains to be seen thanks to the www. Technology has a very significant influence on hospitality operations and Tourism in general. It affects internal systems and ways of working and also the ways in which customers and guests interact with the organization. Nowadays services are provided with the help of technology. Technology has a very significant influence, a big issue in tourism. On hospitality operations and tourism in general. Information about the chances. It affects internal system and ways of working and also the ways in which customers and guests interact with the organization. Examples of key areas of technology: - Online trading - Customer relationship management systems (the way which managing the relationship that you have) - Management information system (all those instruments that allow top management and managers to take decisions, information about chances that you might have. E.g. retails have implemented a system in which they knew actually the figures and any promotions in other shops in Italy were doing. They were doing the same promotions. So they since they knew what was the performance of the others they might do a comparison, you can also have a huge amount of store data, instrument and other data is well. There are artificial intelligences that catch data) - HR functions and learning system (e.g. e-learning) - Front of house technologies (e.g. reservation services) - Food preparation and cooking technologies ANALYSIS OF HOSPITALITY OPERATIONS The ‘open system theory’ reveals little about detailed activities undertaken within hospitality. In hospitality each of the main transformation or conversion process can be seen as separate sub-system interacting with other sub-systems (e.g. front office, accommodation). The first representation of organization is an organizational chart. Traditional way to represent. The Open system combines subsystem with manage kind of organization. Subsystems related to departments. Different professional n the sae organizational units. People do the same things. A traditional design. INTERRELATED SUB-SYSTEMS OF THE HOSPITALITY OPERATIONS In this (less traditional) model, five main interrelated sub-systems are identified. The major task of management is to coordinate them and to ensure that all organizational activities are directed toward the organizational goals and objectives. Another way is considering people structure and management, plus tasks and technology. To make a mix of these four elements: - Technology - People - Structure - Management - Tasks → activities that you have to carry out in order to reach final goals. You reach goals to perform activities. Management role is not to manage all of this different department but the subsystem, technology, people and structure. The system of authority, norms, rules. Technology is not the objective of the organization. Cover many aspects. All organizations have to reach objectives. Technology has to mix and match in order to reach objectives and better manage all the processes and operations. It has a huge impact on customer as well. We start seeing the first representation, that is an organizational chart which show us how organization can be designed. This is the traditional way to represent an organization. Here we can have different sub-systems. We started from the perspective that an organization is a system for example composed by objectives, people, management and structure. So combining this sub-system we might manage any kind of organization. There is a sort of convenience that allow the management to achieve successful performance. This sub systems are related to departments also called department organization, meaning the way in which the group have different professionals within the organizational theory. These sub-systems are created by grouping people doing and knowing approximately the same things. This a traditional organization chart. Another way to represent is considering people structure and management which are already the systems we have seen last class plus technology. The task of the management is to make a mix among these elements. Structure is how work is provided and coordinated, which are the lines of authority, which are the lines of communication and so on. We have also technology in managerial system. The way in which we transformed the input into output. This is technology. And than the tasks. What are the tasks? Tasks are basically the activities that we have to organize and carry out in order to reach objectives. Tasks arrived directly from objectives. What’s the management role? In this case is not to manage all departments but also the sub-systems related to activities. It is a question of Matching. The last objective of organization is not profit (we talked about survival). Today is to survive, have success and growth. Maintain growth and development. The ultimate objective of an organization is to survive as a business and continue in existence, to maintain growth and development and to make a profit. Survival needs for a steady and continuous profit. Profit by itself it is not a sufficient criterion for effective management. The ultimate objective of an organization is not profit. It is to survive as a business and continue in existence, to maintain growth and development and to make a profit. Survival needs for a steady and continuous profit. Profit in a mean to reach the development. At the same time, organization has goals, but it is also a social entity. Lot of people work within the organization and work around the organization. People are stakeholders. There are lots of expectation. Organization is a social entity, lots of people around the organization. We have informal goals: - Personal goals of managers - Perceived goals of the organization - Personal goals of other members of the organization Formal goals are usually defined by the manager in order to be shared with other members of the organization. To have successful organization: - Officially stated organizational goals - The reason and purpose “INTEGRATION OF GOALS” Are set by senior management. If there is not coincidence or effort of top management…. It is the responsibility of management to clarify organizational goals and reconcile ALL conflicting interests. Organizational goals are set by senior (or strategic) management. Stakeholders: any person or group of people with an interest in the organization; they have often conflicting goals. If organizational goals and personal goals differ, conflict may arise, and performance is likely to suffer. It is the responsibility of management to clarify organizational goals and reconcile ALL conflicting interests. ORGANIZATIONAL IDEOLOGIES AND PHILOSOPHY The goal has to be coherent to my organization in terms of culture, values, norms etc. organizational ideology or philosophy is based on beliefs values and attitudes and determine the common doctrine or codes of behaviour which guide the conduct of organizational operations and its dealing with others. (Think about Unicoop which goal is to work to overpass the crisis of prices. But not just in their stores, in all stores of the area. They have ISTAT data. In the area of Florence grocery prices are lower. There is a sort of philosophy and the have ideology under this idea to respect customers). The organization is a sort of behaviour. Ideology and philosophy are similar to organisational culture. To set its ideology and its philosophy organizations produce mission statements and vision. Stakeholder have some expectation. The goals of the organization may be pursued in accordance with its underling ideology or philosophy. Organisational ideology or philosophy is based on beliefs, values and attitudes and determine the common doctrine or codes of behaviour which guide the conduct of organizational operations and its dealing with others. To set its ideology and its philosophy organizations produce mission statements and vision. VISION AND MISSION The vision provides the company with a plan for the future (expected future, perspective target). A company’s vision statement defines an organization’s future goals. e.g. Henry Ford: “a car for every family” → he produces Autos and his slogan is “model team”. He founded Ford in USA and the objective was to provide a car for everyone. In order to produce a car we have the standardisation. Steve Jobs: «a person, a computer» Vision and Mission work together. From the vision a mission statement is defined, which outlines the company’s current business and purpose. When mission statements and values are aligned to behaviour this may have an important impact on productivity! is current business and purpose. Both vision and mission work together. The Mission Statement and the Vision Statement of a company work together. e.g. • IKEA vision: is to create a better life for many people (IDEA) • IKEA mission: is to offer a wide range of furniture of good design and functionality, excellent quality and highly resistant, to low prices that the majority of people could afford (HOW TO PRODUCE THAT IDEA) • Alitalia vision: your mates • Alitalia mission: build sustainable relationship • Hilton vision: to fill the earth with the light and warmth of hospitality • Hilton mission: to be the pre-eminent global hospitality company-the first choice of guests, team members, and owners alike. HOMEWORK (DUE THIS FRIDAY, IN CLASS DISCUSSION) 1 Look at Ritz Carlton website 2 Write on a paper Ritz Carlton’s Vision and Mission [point 1 of the exercise] 3 Choose among ONE of the organizations listed here 4 Write on the paper its vision and its mission available in its website [point 2 of the exercise] 5 COMPARE ITS VISION AND ITS MISSION WITH THE ONES OF RITZ CARLTON. What are the main difference in your opinion? (write them on the paper) [point 3 of the exercise] Please, choose ONE organization among these: 1. Trivago 2. AirBnB 3. Easyjet 4. Flixbus 5. Trenitalia RITZ CARLTON VISION: The ritz Carlton inspires life’s most meaningful journeys. At The Ritz-Carlton, our Ladies and Gentlemen are the most important resource in our service commitment to our guests. By applying the principles of trust, honesty, respect, integrity and commitment, we nurture and maximize talent to the benefit of each individual and the company. The Ritz-Carlton fosters a work environment where diversity is valued, quality of life is enhanced, individual aspirations are fulfilled, and The Ritz-Carlton Mystique is strengthened. The Ritz-Carlton stands ready to create unforgettable moments from some of the world's most treasured destinations. Every day, every guest, is our chance to create a lasting memory. What will you remember? RITZ CARLTON MISSION: “The Ritz-Carlton is a place where the genuine care and comfort of our guests is our highest mission. We pledge to provide the finest personal service and facilities for our guests who will always enjoy a warm, relaxed, yet refined ambience. The Ritz-Carlton experience enlivens the senses, instills well- being, and fulfills even the unexpressed wishes and needs of our guests. EASY JET VISION: increase its strength as the largest low-cost airline in Europe. EASY JET MISSION: “To provide our customers with safe good value, point to point air services. To effect and to offer a consistent and reliable product and fare appealing to leisure and business markets in a range of European routes”. Low prices and quality, “rendere i viaggi agevoli e accessibili per i nostri clienti, compresi quelli affetti da disabilità, è una priorità”. Differences: They are two different type of organization. On one hand the Ritz Carton is a chain Hotel that provides luxury, but niche services, amenities and employees take care of their client that they consider them “the most important resource”. Customer satisfaction. Their website is well structured. Customer needs are different. Anyway, their prices due to the services provided are so high and they are not adequate for example for families or people who want to save their money but try a comfortable journey. On the other hand, easy jet is a low coast company which provides not the same quality of the service, but they are trying to satisfy all needs. The Easy jet offers reliable product and fare appealing to leisure and business markets in a range of European routes. Easy jet is also a European company and offers only flight around Europe. The Ritz Carlton has its hotels around the world. OBJECTIVES AND POLICY Goals, the main purposes, are translated into objectives and policy (whilst remaining true to the organization's philosophy) in order to provide corporate guidelines for the operations of the establishment. - Objectives (strategic objectives) → set out more specifically the goals of the organization, the aims to be achieved and desired end results. Shorter term objective. - Policy → is developed within the framework of objectives and provides the basis for decision making and courses of action to follow in order to achieve objectives. On the other side are the way in which such objective might be reached. Goals are the main purposes, are translated in objective and policies. Objectives are shorter. Is small operational. Policies are the way in which such objective may be riched. In order to reach our objectives. Objectives are “What”, policies are “How, where, when”. GENERAL AND SECTIONAL POLICY Policy is translated into rules, directives, plans and procedures. It refers to all activities and levels in the establishment. - General → determined by top manager and management (directors, owners, senior managers) and provide broad guidelines for the operations as a whole. Related to overall organization. - Sectional → are related by departments, specific operational terms guiding. Sectional policy flows from general policy and provides in more specific operational terms guiding principles for particular aspects and activities of operations (e.g. customer relations and area of delegation, facilities provided, pricing and discounts). Department manager decides sectional policies. All these aspects related to goals, missions, strategies, objectives and policies, are in the framework of “corporate strategy”. It is the overall strategy. There are several steps to reach this. CORPORATE STRATEGY Management takes place within the total corporate context and involves clearly established relationships and coordination. Objectives and policy are formulated within the framework of the corporate strategy. There are several steps. To implement strategic decisions. The opportunity by the market. In order to implement strategic decision, we have Seven steps of strategic planning for HI: - Assess the current position (SWOT) - Assess the current and future environments → where I am, my environment and advantages. My strengths. - Assess the impact of projected changes → if I decided to change something (considering the financial department for example). What we like to do in terms of changes. - Identify possible opportunities and risks - Select feasible goals or objectives - Establish priorities and allocate resources - Provide operational guidelines → policies and all of the aspects related to the final project. Activities (planned) Output (coherent or not with initial goals) objectives). Objectives and policies might be formulated within the framework of an underlying company philosophy which influences the overall conduct of the hospitality organization, and the behaviour and performance of staff. We have an organizational philosophy. For sure the organizational philosophy influences all the organization. (e.g. organization with a strong organizational culture, compete with the others). All these influences the behaviour of an organization. We have a sort of subculture in the same organization. The main task is to be able to communicate. Key element. • Although of great importance, profit is not by itself a sufficient criterion for the effective management of hospitality and tourism operations. Attentions needs to be given to multiple areas of objective-and performance setting, including social responsibilities. Organizational performance is dependent upon the process of matching organizational structure, strategy and environment. • Structures provides the basis for organizational processes and the execution of work. The structure of the organization will affect both economic performance for the morale and job satisfaction of staff. Underlying the development of management theory are contrasting ideas on organization and structural design. We talked about other types of goals. Organizational structure and strategies. The structure is composed by divisional levels. Metaphor the organization as an Elephant with a blind man. The man touches the elephant, finds his leg and thinks it’s a tree. Than find the belly and he thinks it’s a wool the air and thinks it’s a leaf. According to this, we have different views of the same phenomenon. Richard L. Daft, 2004 → «Organizational theory has practical utility [...]; that is, it helps people to understand, diagnose and respond to organizational problems that they have to face...». BUT… Mary Jo Hatch, 1999→ «Organizational theory has practical utility [...]; that is, it helps people to understand, diagnose and respond to organizational problems that they have to face...Organizational theory has practical utility [...]; that is, it helps people to understand, diagnose and respond to the organizational problems they face...». The skill of organizational design lies in taking from the different approaches those ideas which suit best the particular situation. SOME SCHOLARS IN ORGANIZATIONAL THEORY Organization continuously changes. It is important to emphasise not only single approaches. We must front multiple approaches. The comparative study of different approaches. To interpret continuously changings. Here under we have 4 older scholars which created 4 main theoretical school: - Adam Smith→ Famous concept of division of labour. Organization is important and it’s important due to divisional levels. He made an example about the factory of needles/pins (Aghi/spilli). In order to produce such a kind of product, 10 operations are needed. At the end of the day if all those operations were done by just one person he couldn’t produce anything. But if at the end of the day all those operations were done by 10-18 people, the can produce 18.000 needles. Meaning that each person produces something like 1800 needles. Divisional level products efficiency, learning of each individual and the production level. This guy describes the division of labour. - Friederick Taylor→ who was an engineer - Max Weber→ philosophy and sociologist - Henry Fayol The necessary plurality of theoretical approaches highlights two aspects: - the impossibility of proving the superiority of one theory with respect to the others - the most recent theories do not replace the previous ones, but they complete and enrich them MAIN APPROACHES TO ORGANISATION STRUCTURE Four-fold categorization: • Classical approach - including scientific management and bureaucracy • Human relations approach – including structuralist (Heldon Mayo) • The system approach • The contingency approach THE PREMISE…. It is important to emphasize that no single approach provides all the answers It is the comparative study of different approaches which yields benefit for the manager. The skill of organizational design lies in taking from the different approaches those ideas which suit best the particular situation and requirements. MAIN APPROACHES TO ORGANISATION STRUCTURE FAYOL AND ULRWIK, gave basic principles. Ulrwik said that each group must be composed by 5-6 people. Four-fold categorization: Classical approach First one approach. Early part of Twentieth century. Emphasis on purpose, structure and technical requirements. Importance of set of principles. Increase efficiency!!!! Focused on: - Division of work - Reporting relationships - Clear definition of duties and responsibilities - Maintaining specialization and coordination. We have managerial principles, then we have scientific management (Taylor) and then bureaucracy (Max Weber). We are at the very beginning of the twentieth century. The emphasis was on the purpose, the structure, the technical primates. Big factories start to think how to make things more efficient, how to implement machines. The importance of efficiency plays a key role in that period. The importance of families was underlined by reducing prices of products with efficiency. It was important to set on principles that gave guide lines. The managerial knowledge and practices were not so developed. All was based on practical and It was focuses about division of labour, of work, reporting relationship, clear definition of duties and responsibilities and maintaining specialisation, that means everyone has its own tasks and activity and someone who coordinate the single activity. Most of occasion people don’t have any idea about the final product. It is not far from our organizations today. Urwick speaks about 10 principles of organization that have to be applied to design an effective and efficient organization. First of all: 1. the principle of objective: the objective for short period. Anyone has to reach/pursue the same objective, that is coherent with the main objective 2. the principle of specialization, linked to functions, division level, must be clear, anyone has its own function. 3. the principle of coordination, the manager coordinates the work of different people in the same organisation. 4. the principle of authority, there is a central authority, and all has to be related to that authority, is important to right, all issues said by authority, strong gerarchical. 5. the principle of responsibility of the superior, it must be clear. 6. The principle of definition, any tasks any activity, any tool has to be clearly defined, 7. the principle of correspondence, strong correspondence between responsibility and authority, who decides has to be able to do things, autonomy of how to do things. Correspondence in responsibility and autonomy. 8. the principle of span of control, how many people to be supervised. 5-6 max people, straight number. Person are limited number. Each person is able to elaborate a limited number of information. It depends on which type of task. If employees have their autonomy, responsibility of span and control is not very important we must consider other aspects. 9. the principle of balance, in term of number and power. Units more powerful than other. 10. And the principle of continuity. “PRINCIPLES OF MANAGEMENT” – FAYOL Fayol has suggested a set of 14 well-established principles to help discussion on management: 1. division of work, 2. authority and responsibility, 3. discipline, should be rules, 4. unity of command, each subordinate must have a boss, 5. unity of direction, all the organization follow same direction and objective, 6. subordination of individual interest to general interest, 7. remuneration of personnel, 8. centralization, meaning that most of the decision must be taken by central, top manager, 9. scalar chain, chain of command must be clear to the top to down, 10. order should be within the organization, both social and economic order, 11. equity of anyone, in terms of procedures and behaviours. 12. stability of tenure of personnel as soon as possible, 13. initiative, the organisation should favour initiative, but respecting the authority 14. espirits de corps working in team, having a common feel. THE CLASSICAL APPROACH: CRITIQUES Herbert Alexander Simon (1916 –2001) Nobel Prize in 1978. Simon said that organizational design is not unlike architectural design. It involves crating large, complex systems having multiple goals. It is illusory to suppose that good designs can be created by using so called ‘principles’ of organization theory. They’re the basis of all organizational designs. When we design organization. THE CLASSICAL APPROACH: RELEVANCE AND APPLICATION - Does not take into account personality factors - People can exercise only limited control over their working environment- they do not have autonomy - Lack of effectiveness of the classical approach when applied in practice - Out of date approach FEW ORGANIZATIONS FIT NEARLY INTO ANY PARTICULAR MODEL OF ORGANZATIONAL DESIGN AND STRUCTURE. MOST AND HYBRID AND WILL LIE SOMEWHERE ON A CONTINUUM BETWEEN BUREAUCRACY AND MORE ORGANIC FORMS OF STRUCTURE. EXERCISE 1. Each tourist organization have to make a distinction between roles and tasks within it. For a better success every employee should do the job that suits him, even if it is a family-run hotel. The division of tasks is also important to avoid confusion and that 2 people do the same work when there is no need to leave out others and slow down the system. 2. As well as in other organizations, even in the tourism sector it is necessary to take responsibility for making mistakes with customers or carrying out their duties. Therefore, one must have the firmness and the authority to remedy. 3. Education and discipline are the basis for everything. who is rude and unruly is not suitable for working in tourism where every day you are in contact with the different needs of tourists and their requests. 4. I think it is not helpful to have a director for each employee unless it is a large-sized structure. usually in hotels, travel agencies or other types of accommodation, just one director who oversees everything. 5. The objectives of the employees of a tourist facility that is hotels, airlines, agencies, restaurants, are more or less always the same: to satisfy the needs and tastes of the customer to such an extent that this may decide to return, offer a value for money good and reasonable service. 6. There should never be a distinction between personal and general interests. there should only be the interests of the company. 7. Remuneration is an important factor. Usually a good salary stimulates the employee to do his best. sometimes even praising good work with cash prizes can improve the efficiency of the entire structure by stimulating all the other employees who consequently want to be the next ones. 8. The majority of decisions should be taken by the director and then communicated to his employees to avoid misunderstandings. However, generally good ideas are appreciated and taken into consideration. 9. Chain of command must be clear from the top to the down. 10. In every organization there should be an economic and social order to better manage the activities and achieve the pre-established objectives. 11. Procedures and behaviours. 12. As soon as possible. 13. Ideas and initiatives are appreciated as long as they are discussed with all the other employees. However, if the employee has some experience and is in a difficult moment and thinks of doing a correct action, if there are no negative but only positive repercussions should be rewarded. 14. Working in team and have a common feel. 26/09/2018 WHAT DID WE LEARN? Goals are important in an organization. Why we define an organization? We define an organization because a single person is not able to produce output. Than we talked about objectives, strategies and what implement our strategies. The organization, how we can organize our way of doing things. For this reason, we have more people in an organization. How can we organize our structure? Structures provide the basis for organizational process and the execution of work. A person that designs the organization is like an architect, meaning that he has to do different things, mixing together in order to reach coherence. Match together. The importance of organizational and structural design. We also started with all these theories that help us to have all framework to interpret modern organizations. Complex phenomenon the organization. E.g. in tourism sector we have lots of kind of organizations (small, flexible, hierarchy) facing different markets and having different objectives. All these theories have a sense to interpret this phenomenon. We talked about division of labour and what the classic approach is about. The structure of the organization will affect both economic performance for the morale and job satisfaction of staff. Structures provides the basis for organizational processes and the execution of work. The structure of the organization will affect both economic performance for the morale and job satisfaction of staff. Underlying the development of management theory are contrasting ideas on organization and structural design. The classical approach places emphasis on purpose, technical structure and hierarchy of management, and includes: managerial principles (Fayol and Ulrwick) scientific management (Taylor, scientific way to measure work and practices to do work) and bureaucracy (giving the structure in terms of rules, norms, managerial aspects related to how to manage a complex company in an efficient way. We started from this concept of bureaucracy. Because bureaucracy was made because they had a complex organization that was difficult to manage, and they need professionals, rules, procedures and to grant an output that is the same for all citizens). Proving this with the more efficient procedures, policies and practices as possible. Bureaucracy can have some PROS. The positive points, from bureaucratic approach: - Order - Rule and standards - Clear hierarchy This structure helps us to move within this structure with some safe points. Of course, there are some cons: Bureaucracy is fine because makes us able to design an efficient and standardising organization, based on the same qualities around the world. - Processes, steps and procedures are too long and complex. - Innovations and ideas that not allow the important role of employee and don’t satisfy the needs of customers. Same standards. Pro and cons depend on what kind of organization we would have. We probably would like to have a standardize organization where we have the same and very standardizing qualities. The portion of bureaucracy would be very high, but we have to pay attention because people have to be innovative, change and continue to learn. On the other side we can have other organization where the component of bureaucracy is very small. VOTE - Division of work →is the very core of every organization. Because this brings to much more efficiently, but we can also consider in some cases, people must have other knowledge. Division is fine, but a general knowledge of all operation is needed. Division of labour means efficiently. All people di different tasks to reach objectives. - Authority and responsibility→ less strong compared to other organizations. Indeed, leader can we have exception. These principles can be spread in order to improve the services provided. It’s a matter of design all people. Every sub-system has to de designed. - Discipline - Unit of command→ having more than one superior don’t guarantee success. We might have more than one in a very mature organization. The safest way is to have only one superior (Healthy organization). More director probably will spend a lot of time to coordinate each other - Unit of direction - Subordination of individual interest to general interest - Remuneration of personnel - Centralisation - Scalar chain → related to responsibility and authority. - Order - Equity - Stability of tenure of personnel → in eatitaly they are young, but they have high level of work. - Initiative → new ideas - Espirit de corp → organization feed the competition between employees. FROM THE MANAGERIAL PERSPECTIVE (CLASSICAL APPROACH) TO THE PSYCHOLOGICAL AND SOCIAL NEEDS OF INDIVIDUALS (HUMAN RELATIONS APPROACH) THE HUMAN RELATIONS APPROACH During the 1920s greater attention began to be given to the social factors at work and to the behaviour of people in the organizations (Human Relations). HAWTHORNE (1924-1932) studies at the Western Electric Company were realized through four main phases: • the illumination experiment →(increase light = increase productivity) A group of workers in an area where they try to increase the level of the light. They increased the light and they expected the increasing in the productivity. The illumination experiment failed because people worked bad. They found no connection between productivity and level of lighting. Rather, production increased when experiment in Western company, there is something more hidden, the individual motivation, the social being. - the system approach attempts to integrate these two easier approaches a view the organizations with multiple channels of interaction. It considers a balance between technical and human aspects. Human and technical aspects. Motivation + good technical conditions may increase the productivity. THE CONTINGENCY APPROACH It is seen as a continue from the system approach. It is at the same time a sort of big evolution. It says for the first time that there is not only one best way as Taylor and the classical school suggested. But there might be different best ways and it depends on specific different conditions. This approach is called Contingency. It depends on the condition in which the organization works. Contingency approach it is seen as an evolution of system approach. According to contingency approach, the most appropriate structure of the organization and its success are dependent on a range of situational factors (contingencies). It might depend on different variables such as environment, sites, strategies, organizational strategies. It depends on the conditions in which the organization works. Meaning that: It highlights possible means of differentiating between alternative forms of organizations, there is NO ONE OPTIMUM STATE (no one best way in organizing things, no one universal structure!). For example: Situational factors account for variations in the structure of different hotels. We have seen that until now that sites is one of situational aspects that has huge implication on how I structure the hotel and at the very end on the performance that this hotel compare. Specific aspects. Agritourism has lot of procedures with effectiveness. THE “IF-THEN” CONTINGENCY RELATIONSHIP If I have specific situation, then I would structure my organization on specific way, I would design my managerial procedures in a scientific way. This “if-then condition” is the key word of our contingency approach. IMPORTANT CONTINGENCY VARIABLES - Size →is not easy to measure. This context might have different ways to measure. Usually the most common measure for size is the number of employees, rooms. Most common for hotels is the number of bedrooms or number of staff. In other cases range of facilities might be better indicator. What about “formal structure” in a very small hotel with six bedrooms and run by a husband and wife? BUT WITH INCREASING SIZE AND COMPLEXITY OF OPERATIONS. - Technology → is the not the same meaning as we said in the common language and real life. It is the way in which input are transformed in output (input→ transformation process→output). All the technical skills, all the tools and mechanisms used to transformation of materials and input in output. Is related to consider how the nature of the ‘production technology’ process accounts for differences in the patterns of structure and systems of management. What about a very small country club hotel, compared to a fast-food chain, compared to an expensive up-market restaurant? The technological process between fast food, where production is different from a small country club, friendly, not standardize, much more differentiated and different welcome. - Environment influences → the most influential one. How much the environment is complex and how the organization is able to have a so specific target solution. The market became less complex. (e.g. Mc Donald’s in order to increase introduced shared contracts and Easyjet that motivates individuals giving them a little bit of autonomy, making some efforts in order to have motivation). Two important studies have focused on the effects of uncertainty and a changing environment on organization and on its management and structure. These are: • Burns and Stalker –mechanistic and organic organizations • Lawrence and Lorsch–differentiation and integration model Most of these parts might be environmental influences. Both of them are interesting. MECHANISTIC AND ORGANIC ORGANIZATION (BURNS AND STALKER) Those authors investigate the influence the environment. And according to this, the relationship between: - Pattern of structure - Nature of external environment - Economic performance and they suggest two ideal types: - Mechanistic organization - Organic organization Two opposite poles, depending on how they decide to relate to the environment, what kind of strategy and what kind of system and structure. An organization usually it’s a mix of the two. The organizations are in between of these poles. In practice MOST organizations are LIKELY to be a MIX of both structures! The mechanistic is rigid, hierarchical, characterized by closely defined duties, responsibilities and technical method, the specialization of tasks, knowledge centered at the top of the hierarchy, instructions from superiors and vertical interaction between superior and subordinates. Orders going down to the top general to the front line. • No ability to deal with rapid change • More appropriate for stable environmental conditions Knowledge centred at the top. It is very difficult. We have order. Going down from the manager. The top manager directs the structure. Example: traditional, high class and expensive hotel operating along classical lines and with established reputation and type of customer. THE ORGANIC ORGANIZATION Is very flexible and fluid structure. Characterized by network structure of control and authority. The communication is not top-down but lateral based on information and advice. The knowledge and expertise is throughout the organization (others in the organization have knowledge). There is a continual redefinition of tasks and commitment to the common tasks of the organization. We are continuing inventing things giving new solutions, ideas, services and so on. Usually it happens when: - Required when new problems and unforeseen circumstances arise constantly - More appropriate for uncertainty and changing environmental conditions Example: country club hotel with different functions: wedding receptions, corporate sports days, particular requirements. CONCLUSION Not any organization has to be the same as the others. Meaning that there is no one best way but organizations are different depending on situations and how they want to cover those situations. The most important variable in contingency approach for sure is the environment and how the organization decides to cover the environment. Burns and stalker decide to give a first definition: mechanic and organic. The mechanic organization is one organization that gives STANDARD SERVICES, with specific tasks, rigidity of line command, rigidity in communication, responsibilities defined and most of the time given by superiors, CENTRALIZATION. People do not have so high definition in terms of divisional labour, people are knowledgeable and expert from the top managers to the front line. Communication are lateral with lots of participation. - SPECIALISATION→ In organic there is low organization because people tend to be multiskilled with many competencies. One of the biggest disasters in 1980: promote best sellers as manager. They made a disaster they didn’t like this responsibility. Manager task is completely different and most of these sellers were no able to manage others. - STANDARDISATION→ very high in mechanistic and low in organic. - ORIENTATION TO MEMBERS→in mechanistic, people are not oriented to the goals, they do not know the goals, they just know the simple tasks that they have to carry out. While in the organic core all are aware to general goals. They are oriented to the simple task. It is a mean to reach the more general goal. - CONFLICT RESOLUTIONS→ always done by superiors in mechanistic while in the organic we expect that people have much more mature and this conflict might be solved by simple interactions among people. - PATTERN OF AUTHORITY CONTROL AND COMMUNICATION→ hierarchical in mechanistic and wide in organic. - LOCUS OF SUPERIOR COMPETENCE → the competence is at the top of organization in mechanistic organization, people that work (STAFF) in the top line with manager. In the organic is in the front line. - Interaction → vertical lateral or network - COMMUNICATION CONTENT → in the mechanistic is direction and orders, in the organic is advice and information. - LOYALTY → to organization in mechanistic with not interaction while related to group, with interaction in organic. - PRESTIGE → in organic strong personal contribution. In mechanistic the personal contribution should be included. Today personal and organisational are mixed. VIDEO “FALLING DOWN” - They don’t provide breakfast after 11.30 a.m. and the man want to have breakfast at 11.35 - “The customer is always right", “here I am…the customer” - They answer, “The customer is not our policy”. - The man has a gun, he menaces them. He convinces them to serve him the breakfast. They give him breakfast. - Mechanistic organization→ closed to the customer, an evidence of some incoherence - Stop serving breakfast at 11.30 VIDEO 3M - Founded in 1907→ 1929 the president the company and the first laboratory - 3m strategies→ bring other idea The role is a set of expectations of behaviour towards a person in reference to the objectives of the organization that must “shape” its action and interaction. The role is the set of behaviours that the job position holder puts in place to meet the expectations of: the organization, its own, and those of its interlocutors. The role has two dimensions: - the dynamic and subjective dimension (discretionary dimension) that can be "interpreted" by the position holders, since the behaviours in an organizational set are the result of a complex interaction between different organizational, individual and environmental variables. - the prescriptive dimension, which is the one prescribed by the organization (in terms of task, duties, responsibilities most of the time reported on the job description document) We can represent the two dimensions of organizational role as follows: The breadth of the discretionary dimension in relation to the prescriptive one (and the proportion between the two dimensions) would depend on the type of organizational role. For example, a managerial job will have a wider discretionary dimension in its organizational role compared to a merely operational job. THE FLEXIBLE ORGANIZATION: THE SHAMROCK ORGANIZATION (HANDY) Helps us to understand the need of flexibility. According to Handy the shamrock organization is composed by three leaves (the shamrock is symbolic of the organization) since it is made up of three distinct groups of people managed, organized and payed differently. he helps us to understand who people are needed. - Professional core→ professionals in an organization, experts, those that are the core - Contractual fringe→ they might be services provided by other companies (catering). - Flexible labour force → those workers that are not permanent and cover special operation - Customers → most of the activities are self- serviced by customers. ATKINSON AND THE FLEXIBLE FIRM We might consider different kind of flexibility: - Functional → people that are in front office go to the…→ multiskills and they might substitute others → may have more implications in terms of organization - Numerical→ related to the number - Financial → in terms of costs. → might have other consequences (e.g. implementation of new form based in making our employees saving money) Both of these approaches are uptodated. The flexibility has to be managed. IMPLICATIONS OF FLEXIBILITY AND THE IMPORTANCE OF MANAGING THE FLEXIBLE LABOUR FORCE Economic pressures, rapid developments in IT, need for review of structure design Shamrock organization: - Which people and what activities should belong: to the core, to the management and control of subcontracting, and to the flexible workforce? - BUT…Increased importance of control over the contracting-out.. Managing the flexible labour force: Flexible workers may have low commitment and motivation… DESIGN OF STRUCTURE: BASIC CONSIDERATIONS IN THE DESIGN OF STRUCTURE We need to establish a framework of order and command by which the activities of the establishment are accomplished successfully. Basic considerations in the design of structure… 1) Harmonization with objectives: «Structure must harmonize with the goals and objectives of the establishment. […] A clear definition of goals and objectives provide a basis for the division of work and grouping of activities into sub-units. The objective for the sub-units must be related to the overall strategy of the hotel in order that an appropriate pattern of organization structure is established» 2) task and element function→ a woman divides two functions→ tasks are basic activities which are related to the actual completion of the productive process and directed towards specific and definable end- results. Related to services and products. Related directly with customers. The element functions are activities that support our productive processes. Are strictly related to the production, from purchasing, to production to market. The element functions are also supporting functions. Structure should be cantered around key activities which directly relate to PRODUCTS, SERVICES and FACILITIES. Element functions are service and supportive functions! 3) Centralization and decentralization → the structure would be centralized and standardize. An organic is centralized. 4) Span of control and scalar chain → Each superior can have a maximum number of subordinates. Superior capabilities, characteristics of subordinates (more or less autonomy, knowledge). Tall organization much more difficulty in communication between top and line position. The superior can manage an high number but at the end we might increase the number of hierarchical level. To improve integration mechanisms. 5) Formal organization relationships: line and staff structure →Sales and marketing give only support but decision are taken by the superior. The control task is done only on the line. 03/10/2018 WHAT DID WE LEARN? We have already covered lot of aspects related to organizational structure, why organizational structure is important, why we need all single part of organization considering an organization as a system. According to the system theories we have input, organizational processes and output. Lots of theories: the organization studies (Classical approach; there are some specific principle and scholars: managerial principles). Scientific management with Taylor. Taylor increased the productivity with technological aspects and equipment considering people as means for the production comparing people to machines and providing single skills, very efficient way organizing job and so on. Then we have Bureaucracy with Max Weber. Efficiency not within in the managerial aspect. Management were considered to have good professionals well chain, specific criteria and specific rules (standardisation, higher productivity). In that period was seen that the drawbacks of this organization (low motivation, health problems). The second school is Human relation, the other side of the coin (individuals, humans being, motivation). Hawthorne studies (Western electric, personal skills, human side, specific kind of leadership, productivity was increased). The third school was the system theories in which you match together (you have to take care about technical aspects and social aspects of the organization). The fourth one was the contingency approach (three variables, connected to the environment variables, technology). Two important studies: Born and Stalker, there are two ideal type of organization (Mechanistic (top-down) and organic (lateral)). In terms of communication how can we say about mechanistic organization, how is the communication? Vertical from top to down. In the organic is lateral (network). Tasks in mechanic organization are very specialized. People has to be very specialized in limited number of tasks. In organic organization people are multitasking. The responsibility and decision in mechanic depends from the top manager and in the organic the control is spread. The other important study was done by Lawrence and Lorsch who considered the organization as a whole and they started considering the single organizational units (e.g. the marketing department probably is more organic than the production department, two conclusions: the research and development department of Mc Donald’s even if Mc Donald’s is mechanic, the department might be designed more organic. In different levels of the organization In this case we have first hierarchical level, top manager is based on geographical area not on departments. The first hierarchical level before the top manager is really important because it gives another important information. In this case probably, the key of our organization, is that is very difficult to manage their business in terms of regions, that business is so hard to manage. We can find the same in international companies. It is so difficult to coordinate the work of all these different facilities all over the world. Any international hospitality industry might have some kind of division of labour, hierarchical levels based on geographical area. In terms of logistic the best option that may concern these types of organizations is that they are international. In this case the main concern of this company is the diversifying between economy travellers and luxury travellers. For sure these two kinds of travellers would have different needs. Because of this we have to make marketing strategies that are different. The main concern is that they have different business and they want to be efficient. They decided to have this type of divisional labour in which they have a main department that works for economy travellers and luxury travellers. The same form of Virgin (many kinds of business: airlines, music, fitness gym, formula1). The first hierarchical level under the top management is the critical one. THE LIMITATIONS OF ORGANIZATIONAL CHARTS Of course, organizational charts have some limitations because they are: - Only a static view of the establishment - Do not show comparative authority of position - Do not show lateral contacts - Do not show delegation from superior to subordinate→ front office manager that starting to delegate his responsibility and delegation is an effective instrument to develop future manager. - Relationship between staff and line position→ strategic management provide information to the whole organization not only to top manager. - Do not show informal structure There are other documents that provide the same thing: quality manual in which you have processes, job description in which you have all duties. But what is impossible to see, in any organizational documents, is the informal structure that you have. THE FORMAL AND INFORMAL ORGANIZATION The formal organization is something that is planned by departments. The formal organization is deliberately planned and create. It is hierarchically structured with the division of tasks, and defined relationships of authority and responsibilities. Within a formal structure an informal organization will always be present. People will modify the formal organization, methods of operations and actual working practices. What happens in practice may vary from the formal structure. A social organization with own social groupings and relationships, interactions of people, psychological needs… irrespective of those defined within the formal structure. The organization needs to be aware in order to avoid drawbacks of informal organization. IMPORTANT TO RECOGNIZE THE EXISTENCE OF INFORMAL ORGANIZATION AND TO MANAGE IT (TAKE ADVANTEGE OF IT!) e.g. It is very common in Italy to have Mothers WhatsApp meaning that most of the communication is through WhatsApp rather than from the school. That’s very dangerous. It happens because the school is not good in communication otherwise mum should use WhatsApp. Since we do not have communication, if one get one information use WhatsApp. Fake news sometimes is shared. THE IMPORTANCE OF INFORMAL ORGANIZATION On the other hand, it is important to have an informal organization due to: - Satisfaction of members’ social needs - Motivation through status and social interaction - Additional channels of communication - A feeling of stability and security - it represents a mean of highlighting weaknesses of formal organization THE INFORMAL ORGANIZATION CASE STUDY MS RAKU “Ms. Raku made pottery in her basement. That involved a number of distinet tasks-Wwedging clay, forming pots, tooling them when semidry, preparing and then applying the giazes, and firing the pots in the kiln. But the coordination of all these tasks presented no problem: she did them all herself." Questions: 1. Isthis an organization? No 2. Whatis the objective of the organization? To produce pottery 3. What the single distinct tasks involved in the overall organizational activity? Tooling Nas, Forming them Preparing Applying Fring the ER pots when the glazes glazes piote in rav ‘semidry “The problem was her ambition and the attractiveness of her pots: the orders exceeded her production capacity. So she hlred Miss-Blsque, who was eager fo learn pottery. But this meant Ms. Reku hed to divide up the work. Since the craft shops wanted pottery made by Ms. Raku, it was decided that Miss Bisque would wedge the clay and prepare the glazes, and Is. Raku would do the rest. And this required coordination of the work, a small problem, în fact, with two people in a pottery studio: they simply communicated informally” Questions: 1. Isthis an organization? Yes 2. What is the first step done? And how? Dividing working tasks between the two ladies (Miss Bisque the tasks in light blue; the others activities Ms Raku) 3. What coordination mechanism? Informal communication a Tooling Nasi Forming them Preparing Applying FOA pots when the glazes glazes pio clay somigry Je Kiln “The arrangement worked well, so well that before long Ms. Raku was again swamped with orders. More assistants were needed, but this time, foreseeing the day when they would be forming pots themselves, Ms. Raku decided to hire them right out of the local pottery school. So while it had taken some time to train Miss Bisque, the three new assistants knew exactly what to do at the outset and blended right in; even with five people, coordination presented no problem” Questions: 1. What does increase in demand imply? Increase in organizational size 2. What organizational form is this? Elementary structure 3. What coordination mechanism? Informal communication 4. Graphically represent the organizational chart... Ms Raku Miss Assistant Assistant Assistant Na Falc: Bisque 1 - Organizations structured by geographical area (ex. Northeast, south east regions). - Organizations structured by customer (ex. professional, association, government groups for a convention sales management firm). DEPARTMENTALISATION DEFINING MANAGEMENT The meaning of management Management is a very generic term with contrasting ideas related to it. Everyone can be regarded as manager For our purpose a manager within a structured work has to coordinate others, it is directed to the attainment of goals and objectives through the efforts of other people by using systems or procedures, manager supervise, coordinate and control the work of others at any level. we are concerned with management as: • Taking place within a structured work organization and with prescribed roles • Directed towards the attainment of goals and objectives • Achieved through the efforts of other people • Using systems and procedures • Manager as a job title (“liberal” use…) • The role of supervisors • Management and leadership • The importance of management it is a job title of liberal use with the role of supervisor. Management is very important because it relates to all the activities of the organization, it cannot be centralized or decentralized. Only the top-manager can. (For ex. Take strategic decisions). Management relate to all activities of the organization and it is not a separate and discrete function; it cannot be departmentalized or centralized! It relates to ALL activities in the organization! Skills: - Technical - Influence - Conceptual Functions: - control → supervisory management - organizing →middle management - planning → senior management → top manager SUPERVISORY LEVEL Supervisory Level overviews a group of line or staff workers with a control function. Need for technical skills (e.g. general manager). Lead or assistant manager that overviews a group of line or staff workers. For example, a dining room supervisor who supervises a group of servers. The supervisor mostly performs a control function. This means that he or she is responsible for making sure that actual performance of every person in the team meets the established standards of performance. So, the supervisor possesses the actual skills required to line or staff function, that are technical skills. But these are not sufficient for effective supervision. So, supervisor need to possess technical skills and effective staff relations skills that is the ability to influence the staff to meet performance standards (this may be a capacity considered for promotion). MIDDLE LEVEL Middle-level managers organize all the functions and supervisors. Need for strong relationship and influence. (e.g. front office manager). Are usually responsible for the function of a sizeable work unit (department, division or store). He or she supervise junior-level managers, supervisors or leads (who in turn supervise line and staff employees). For example, a food and beverage or front-office manager is the department leader for most services in the lobby (bell staff, front desk agents, reservation agents, concierges, door staff, PBX operators and valet employees). He or she has a limited number of “reports”. The middle manager spends most of the time performing the organizing function in which coordinates activities within and outside the department. Further, he or she (e.g. the front-line manager) has to establish strong relationships with peer who hold similar level positions in similar departments (e.g. housekeeping, food and beverage etc.). SENIOR LEVEL Senior-level managers have many functions but mainly planning. Need for conceptual skills. Occupy the top position (executive committee). Usually: general manager, assistant general manager, controller, HR director, chief engineer, food and beverage director and sales and marketing. While senior-level managers continue to engage in control, organizing and influencing functions, they spent most of time in planning function that is a strategic approach used to achieve future objectives. The most important skills for these managers are conceptual skills, that are the ability to articulate and influence workers toward achieving the mission and vision of the organization. AT ALL LEVELS… In our tourism sector lower level managers need more skills and are much more important than in other sectors. Managers at all levels of the organization have the authority to make decisions aimed at solving problems and contributing to the strategic direction of the work unit. • Management Responsibility: Assuming responsibility for an area of authority. Managers are empowered by a balance between authority and responsibility (decision making responsibility + authority). • Management Risk: The manager will be held responsible for the outcomes of each specific decision. Occurs when managers engage in behaviours that may be detrimental to a manager’s standing in an organization. THE PRINCIPLES AND PROCESSES OF MANAGEMENT DIFFERING STYLES AND APPROACHES OF MANAGEMENT Management style can be as important as management competence. The importance of Managerial behaviour and attitudes toward people… • Theory X and Theory Y (McGregor put forward two sets of supposition based on polar assumptions about the attitude of managers toward people at work) • Theory Z MC GREGOR -THEORY X AND THEORY Y Theory X represents the assumptions on which traditional organization are based (before HR approch). Assumptions: • The average person is lazy • Most people must be coerced, controlled and directed • The average person avoids responsability (prefers to be directed, no ambition…) • Motivation occurs only at the physiological and security levels Theory Y consistent with more recent approaches to human nature and behaviours. Assumptions: • For most people work is as natural as play or rest • Commitment to objectives is a function of rewards • With right conditions the average worker can accept responsability • Creativity and problem solving is distributed widely • Intellectual potential only partially utilized • Motivation occurs at the affiliation, esteem and self-actualization levels as well as at physiological and security levels. OUCHI-THEORY Z An extension of theory X and Y was developed by Ouchi. Theory Z emphasizes: • trust • less hierarchy and bureaucracy • higher levels of involvement considered as an up to date management style. FIVE BASIC COMBINATIONS (BLAKE AND MOUTON MANAGERIAL GRID) 1. Impoverished managers 2. Authority compliance manager 3. Country club managers 4. Middle of the road managers 5. Team managers TWO ADDITIONAL GRID STYLES 1. Paternalistic ‘father knows best’ management, where reward and approval are granted to people in return for loyalty and obedience, and punishment is threatened for failure to comply 2. Opportunistic ‘what’s in it for me’ management, in which the style utilized depends on which style the manager feels will return him or her the greatest self-benefit. MANAGEMENT BY OBJECTIVES MbO particularly suited for service activities… • Not always easy to discern clear-cut qualified standards • Targets: – Ensuring customer satisfaction – Mantaining empoyee peformance – Protection of assets • Provides an opportunity for staff to accept greater responsibility and to make a higher level of personal contribution • Partecipative style • Influences all levels and activities of an organization • Performance standards of operative staffs are guest-centred vs. performance standards of heads of department are profit-centred POSSIBLE INDICATORS OF MANAGERIAL EFFECTIVENESS What is your level of managerial skills? In class self-assessment Skills Inventory (Northouse, 2007, p. 65) administered to the class. • Technical Skill • Human Skill • Conceptual Skill THE NATURE OF LEADERSHIP William Shakespeare “Some are born great, some achieve greatness, and some have greatness thrust upon them” THE STUDY OF LEADERSHIP An essential part of management is also coordinating the activities of people and guiding their efforts towards the goals and objectives of the organization, but the aspect of leadership is the core. This involves the process of leadership! There are so many definitions: - The meaning of leadership→ Relationship through which one person influences the behaviour or actions of other people. This might be even authority - Changing nature of the work organization → From close control to support (empowerment) - Teamwork and inspiration → Inspiration and creation of a vision → very close to leadership - Leadership in hospitality industry LEADERSHIP OR MANAGEMENT? «Whereas effective management involves leadership, it does not follow that every leader is necessarily a manager». You might have a person that is a natural leader but not official leader, very good in inspiring people. There are some basis for the understanding of the two dynamics (Kent): - Managers do things right, leaders do the right things → satisfy the needs - Managing is an authority relationship, leading is an influencing relationship - Managing creates stability, leading creates change → inspiration, creativity and autonomy. THE LEADERSHIP PROCESS “Remember that you can be appointed a manager but you are not a leader until your appointment is ratified in the hearts and minds of those who work for you” Some authors recognize the leadership as a process. Of course, one of the dimensions, very much related is that one of power and the way in which you use it. The power is based on same aspects. Leadership, power and influence. The leader may exercise different types of power in particular circumstances and at different times. of the dimension recall when we talk about leadership, is the usage of power. Based. These are five main sources of power (French and Raven): - Reward power → influence through rewards - Coercive power → influence through punishment - Legitimate power → influence through authority - Referent power → influence through identification - Expert power→ influence through special expertise These aspects are related to recognition. THE STUDY OF LEADERSHIP THE TRAIT APPROACH Some authors taught that leadership consists of inherited characteristics of personality traits. Leaders are born not made. Limitations - No effective empirical evidence of common characteristics - Ignores situational factors Conclusions - Born or made? Even if there are certain inborn qualities which make for a good leader, these natural talents need encouragement and further development. - Importance of the situation FUNCTIONAL OR GROUP APPROACH According to this approach concerning the aspect related to leader, this approach is based on the process and content of leadership in terms of: Functions and responsibilities of leaders. E.g. leaders as executive, leaders as planner, as policy maker, as expert, as external representative etc. In this case the leader has to match together and integrate the needs related to the tasks, the needs related to individuals, needs related to the team in terms of survival. Needs and leadership functions (Adair), the leader effectiveness is dependent upon meeting three key functions or areas of need within work group INTERACTION OF NEEDS WITHIN THE GROUP 19/10/2018 Eight steps of the different thoughts that scholars had on leadership. Last time we started talking about the first perspective, that was the trait approach to leadership and we said that if you have some sort of traits, you would be a leader. According to the trait approach, if you are born with those traits, you are born as a leader, otherwise not. The second approach is related to the functional and group one. Leaders are characterized according to their functions and activities that they carried out. LEADERSHIP AS A BEHAVIOURAL CATEGORY The 3rd is the behavioural approach: not activity that leader carry out, not specific traits according to which you are a leader, but the behaviour that a person has with his/her subordinate and this behaviour affect the relationship with the others. It allows reaching goals according to the others. This approach draws attention to the kinds of behaviour of people in leadership situations. The focus was on the effects of leadership styles on group performance. As for managerial behaviours there is a general agreement on TWO major dimensions of managerial leadership, some dimensions in terms of behaviour: - Position power (the power of the leader by virtue of position in the organization and degree to which the elder can exercise authority to influence rewards and punishments or promotions and demotions) 8 combinations of group-task situations. PATH–GOAL THEORY OF LEADERSHIP Performance of subordinates is affected by the extent to which the manager satisfies their expectation. Four types of leadership behaviours (House): - Directive leadership – let subordinates know exactly what expected - Supportive leadership – friendly and approachable manner - Participative leadership – consulting subordinates and evaluation of their suggestions - Achievement-oriented leadership – defining challenging goals and seeking improvement of performance Two main situational factors: •The personal characteristics of subordinates •Nature of task Performance of subordinates is affected by the extent to which the manager satisfies their expecation. Readiness (or maturity level) of followers HERSEY AND BLANCHARD Metrics. You start from telling providing specific instruction, then go to explaining’s part. In the third step you start to share ideas with the leader. The leader facilitates people to make decisions. This is he situational approach leadership. TRANSFORMATIONAL LEADERSHIP Two opposite poles. - Transactional leadership→ to maintain real transactions. Gives the resources you need. Transactional leadership. Is based on legitimate authority within the bureaucratic structure of the organization. The emphasis is on clarification of goals and objectives, work tasks and outcomes, and organizational reward and punishment. “I will give you this, if you do that”. - Transformational leadership→ is someone like the leader that gives you the chances to develop and be innovative. Helps you in development. Rather able to inspire you in a chance. The proper definition of a leader. Leads people to changes. Transformational leadership. Is a process of engendering higher levels of motivation and commitment among followers. The emphasis is on generating a vision for the organization and the leader’s ability to appeal to higher ideals and values of followers and creating a feeling of justice, loyalty and trust. “Transforming the performance of a business”. INSPIRATIONAL LEADERSHIP Personal quality focuses on how people are able to convince other, to do things. Charismatic leaders. All the approaches. The first fives are like a path. Last three are current debate. The last two are related to specific sectors. Not so much concerned with the theory of leadership more with the skills of motivating and inspiring people. Charismatic leaders transform followers by creating changes in their goals, values, needs, believes and aspirations. They accomplish this transformation by appealing to followers values and identity. ‘Charisma and the ability truly to inspire and move loyal followers in the desired direction is one of the most controversial and elusive leadership qualities’. Carismatic leaders have a tremendous effect on members and give no guarantee that this will be positive! SERVANT LEADERSHIP According to environment I design my structure as mechanic. The servant Is included in inspirational one. Our employees need to be inspired. The desire to serve and empower followed in other to have their performance at high level. The essence of servant leadership is that the leader is motivated by a desire to serve and empower followers: influence is achieved through the act of service itself. • Leader behaviour that focuses on follower development and deemphasizing glorification of the leader. • Great leaders inspire people to do more than they believe they’re capable of: - Challenge the process - Inspires a shared vision - Enable others to act - Leads by example - Is prepared to make personal sacrifices for the sake of the common good In the middle. Try to understand and manage. For sure culture is a great potential and we need to be aware. Many researchers are increasingly seeking for … a middle-way between optimist and pessimist that has led to the emergence of a realist research agenda. The realists’ view …: • Recognize that potentially culture can be changed (they are neither in support nor against the management of organizational culture) • Eschew the idea that this process will always be controlled by top management • Realists are neither in support nor against the management of OC • They advocate fuller understanding about the application of the concept and the dynamic of cultural change (crisis, formation of the organization, turnover) • It aims at merging theoretical rigor with contributions to the practice WOODS’ VISION OF OC One of the studies about culture, some scholars highlight that much of the culture is intangible and invisible and difficult to understand and analyse. Much of culture is invisible or at least unspoken. It includes: - Visible or manifest level →Slogans, ceremonies, myths, sagas and legends, uniforms, building design. - Immediately not visible → at strategic level. Beliefs about strategic vision, product market expectations, internal approaches to management. - Deeply submerged level → level of deep meaning. Values and assumptions that the organization operates. SCHEIN’S THREE LAYERS OF ORGANIZATIONAL CULTURE In his well-known model Schein describes three levels of cultural phenomenon in organizations that are visible manifestations, values and deepest level of basic underlying assumptions. The most well know researcher is Edgard Schein that introduce: - Artefacts and creation → The physical and social environment of the organization. The most superficial manifestation of OC and includes things like corporate logos, dress codes and written and spoken language used in the organization. anything that you really can see. Material things easy to see. (e.g. IKEA yellow and blue, the colours of its country of origin). The physical and social environment of the organization. - Values, beliefs and attitudes → Prominent in the manner in which individual members justify their actions n behaviours. The more the members hold these core values as unquestionable the more the culture is strong. not easy to see but we would understand from some behaviours and how they do things. Prominent in the manner in which individual members justify their actions in behaviours. The more the members hold these core values as unquestionable the more culture is strong. - Basic assumptions → Basic and tacit which impact on how members perceive, think and feel. So taken for granted that members would find behaviour based on any other premise as inconceivable. THE THREE SCHEIN’S LAYERS OF OC Iceberg STUDYING ORGANIZATIONAL CULTURE Other guys went to this aspect developing a classification and introducing single aspects: - Brown 1998 has identified a number of aspects or elements of OC that are useful to study OC: Material objects, corporate architecture and corporate identity, symbols, language, metaphors, stories, myths, heroes, ceremonies, rites and rituals, norms of behaviour, values, beliefs and attitudes, basic assumptions, ethical codes, history→ all these aspects might be good starting point to make the big picture of organizational culture. MATERIAL OBJECTS, CORPORATE ARCHITECHTIRE AND CORPORATE IDENTITY AND SYMBOLS Visible and manifest way in which OC can be assessed! Examples: • Mission statements (material objects) • Symbols and Artefacts (portray of brand image/materialize the concept of a company)… are symptoms of OC (like dress, pins, plaques, trophies, certificates, banners, posters etc.) and are defined as “those aspects of an organization’s culture used by its members to reveal or make more comprehensible the conscious and unconscious actions, values, and feelings inherent in the organization (Armenakis et al, 1996, p. 123)”. – Influence the perception of people – Add value – Differentiate from other companies (making it appear unique). • Appearance of the staff, software services (use of uniforms, dress codes and appearance standards) Disney has a 36-pages cast members’ appearance guide detailing length and style of hair ant the colour and quality of cosmetics. Disney’s guidelines for Male Cast Members e.g. hairstyling LANGUAGE AND METAPHORS Front-line tourism and hospitality employees should constantly be in a positive, joyful and even play fool mood… Service organizations increasingly aim to create performativity through the use of performative labour, that is «the rendering of work by managements and employees alike as akin to a theatrical performance in which the work place is constructed as similar to a stage». Language and metaphors aim at constructing a common understanding may further favour also the understanding of organization abstractions such as ‘good service’, ‘high quality’ and ‘excellence’. The use of language in Disney… Casting office = HR department Casting rep = HR manager Cast member = employee Casting = hiring for a job Job = role Job interview = audition Guest = visitor to Disney theme park or resort Backstage = a park area not accessible to guests On stage = any area where a Cast Member might be seen by Guests Attraction = a theme park ride or show Costume = the uniform, worn by a Cast Member Imagineer = attraction designer (imagine+engineer) Queue/line= pre-entertainment areas Show = everything that encompasses an attraction or park feature STORIES, MYTHS, HEROES AND HISTORY e.g. The Ritz Carlton “Wow stories”→ Ritz Carlton uses stories to highlight how focused the company is on exceeding customer’s expectations. The cultural web Textbook (Pgs 442-443) . Rituals and routines - rituals are the particular activities or special events through which the organisation emphasises what is particularly important; and can include formal organisational processes and informal processes. Routine behaviours are the ways in which members of the organisation behave towards each other and towards those outside the organisation: they make up how things are done, or how things should happen. . Stories told by members of the organisation that embed the present and flag up impor- tant events and personalities, and typically have to do with successes, failures, heroes, villains and mavericks. . Symbols — such as logos, uniforms, titles, type of language or terminology commonly used - which become a shorthand representation of the nature of the organisation. For example the use of the term ‘KP. for kitchen porter, or always responding to the chef in the kitchen with the acknowledgement, ‘yes, Chef". . Power structures - the power of the most powerful individuals or groups in the organi- sation may be based on management position and seniority, but in some organisations power can be lodged with other levels or functions. ® Organisational structures — which reflect power structures and delineate relationships and activities within the organisation, and involve Re and control and less formal systems. both formal structure ® Control systems — the measurement and reward systems that emphasise what it is important to monitor, and to focus attention and activity - È ship of funds or quality of service. MEO PAX ARIA en ® The paradigm of the organisation, which encapsulates and reinforces the behaviours observed in other elements of the cultural web.!* ve 24/10/2018 Exams 14 January-11 February (afternoon) 1) Rituals and routines → warm and sincere greeting using the guest’s name, anticipation and fulfilment of each guest’s need, fond farewell and give a warm goodbye and use the guest’s name 2) Stories→ the origin of the Ritz Carlton Hotel Company in Boston. The history begins with the celebrated hotelier Cesar Ritz “the king of hoteliers and hotelier to kings”. His philosophy of service and innovation was connected to luxury. When he died in 1918 his wife Marie continued the expansion of hotels bearing his name. in 1927 opened other hotels in NY, Philadelphia, Pittsburg, Atlantic city, Boca Raton, wow stories 3) Symbols→ lion and crown combo 4) Power structure→ on one side hierarchical with lots of standards but at the same time some of these shared with employees Main types of Organizational cultures - HANDY MODEL - OCAI MODEL → two dimensions Adhocracy oriented Clan oriented Hierarchically oriented Market oriented Cameron and Quinn introduced this model. This model says that 1 model can be prevalent but there are also others. They developed the OCAI assessment in which 26/10/2018 - Summary of last class Ritz Carlton exercise - Handy model-types of organizational culture (Ch. 10 Mullins, pp. 436-437; 438-439 - Organizational climate (Chapter 10 Mullins pp.445-447) - Management of change (pp.458-459-461-465) - Workforce motivation and involvement (Ch. 6 Mullins) Exercice about Ritz Carlton. Describe the Ritz Carlton culture, identifying layers, categories. Rituals and routines: - Daily meetings of all members to recall single organizational values (video) - 3 phases of staff selection Stories: - Wow stories Symbols: - The logo - The motto - White and black colours - “ladies and gentlemen” as title and terminology used - Dress code Control systems: - Quality standards (definition of standard) - Granting proper training - Asking for feedback Organization structure: - Autonomy granted to some positions (job design) - Team working as a way of organizing work - Hierarchical structure as ways of control - Standards and norms as ways of control Power structure: - Decentralisation These instruments allow us to put all these things in order in different layers. What kind of culture do we have in Ritz Carlton? There is not one organizational culture. There might be more kind, but one is prevalent. Hierarchy is the prevalent in Ritz Carlton because of these standards, the role given by different people. Adhocracy is the lowest. An organization do not have only a single culture orientation but rather each organization have a mix of the four, but one organization might have a prevailing one! HANDY MODEL According to handy model there are 4 main types of OC: - Power culture → this culture considers a central point (disseminating), small entrepreneurial organizations, trust and personal communication, little bureaucracy and few rules or regulations. One person looking to other and sharing ideas. (small companies-positional power in terms of decisions) - Role culture → the importance is given to different roles, we talk about bureaucracy based on logic and rationality, strength of organizational “pillars” and the functions of specialists (e.g. purchasing, finance etc.), the work is controlled by rules, procedures and coordinated by a small band of senior managers. (big companies- very similar to a bureaucracy) - Task culture→ in this case the important aspect is related to job orientation and project orientation. People generally work in teams, task culture seek to utilize the unifying power of the group, few levels of authority, influence is widely spread and based more on expert power that positional power. The power is in the expert hands. We can have organization like NASA, big companies that work in team (they have to work in team!!!). Forces of change An organization can only perform effectively through interactions with the external environment of which is part. There are factors that create a volatile environment: - Uncertain economic conditions - Globalization and world competition - Government intervention - European union legislation - Other source: knowledge explosion, rapid product obsolescence, scarcity of natural resources etc. PLANNED ORGANIZATIONAL CHANGE When we have organizational change, we might have intentional process in which manage the change. A lot of backstage. To respond or anticipate the factors mentioned: planned change represents an intentional attempt to improve, in some important way, the operational effectiveness of the organization. The basic underlying objectives: - Modifying the behavioural patterns of members of the organization - Improving the ability of the organization to cope with changes in its environment. PROVIDING A “WINDOW FOR CHANGE” In any kind of organization, of course the organization might be good explaining why people must change. Initiating and maintaining a quality of working life change programme. Some examples: - A general sense that the organization could perform better - The need to improve flexibility - Sense that skills and abilities of people are under- utilized - The need to introduce changes in technology - Concerns about ineffective communication or poor performance indicators - Poor relationship between managers and subordinates RESISTENCE TO CHANGE - MANAGERIAL RESISTANCE → changes may experience often resistance at the managerial level, despite the need for change. it is about the fact the managers might not want to change because there is a lack of resources (major change often requires large resources), or they prefer to maintain stability or predictability, because they feel comfortable, they have threat with the power or influence. - INDIVIDUAL RESISTANCE→ individual resistance to change is “natural”. It appears as a common phenomenon and can take many forms and arise form a combination of factors. People fear of unknow, they love their habits, inconvenience or loss of freedom, economic implications, security in the past, threat to status, selective perception (stereotypes) SUCCESSFUL IMPLEMENTATION OF CHANGE Study on behaviour modification by LEWIN who developed a program of planned change and improve performance. Three phases process: - Unfreezing→ reducing those forces which maintain behaviour in its present form, recognition of the need for change and improvement to occur. - Movement→ put in act, training, communication. Development of new attitudes and behaviour and implementation of change. Change the behaviour of people in an organization. - Refreezing→ people start behaving differently. You have to check these steps. Stabilizing change at the new level and reinforcement through supporting mechanisms (e.g. new policies, structures and norms) 31/10/2018 • 5-9 November → international week, three guest lectures. • 12-16 November → assignment n°2 • Friday 16 November 2 extra hours • Materials – material of guest lecture WORKING MOTIVATION THE NATURE OF MOTIVATION The motivation is a key aspect of anyone who is approaching any managerial class. Managers take into consideration the motivation of his/her subordinates and coordinates. Motivation is one of the key aspects in many contexts such as Tourism in which we have so high levels of labour intensive. We consider a lot motivation because we can consider the role of a manager. The labour-intensive industries (such as Hospitality) attention should be given to the feelings of staff and to appropriate systems of motivation and reward which affect job satisfaction. The study of motivation is concerned with why people behave in a certain way, and what determines the direction and persistence of their actions. The underlying concept of motivation is: a driving force (within individuals) by which they attempt to achieve some goal in order to satisfy a need or expectation. In some sense motivation explains to us why people are connected with the organisation, why they do perform properly and coherently with the objective of the organisation. You might have a focus on the objectives. We have two aspects: - Achieving a goal - Satisfy and respect needs NEEDS AND EXPECTATIONS AT WORK People’s behaviour and actions are directed towards the satisfaction of certain needs and expectations which form the basis of their motivational driving force. The various needs that can be categorized in two basic kind of motivation: - Extrinsic motivation → it is something related to “I get my motivation, I satisfy my needs from things that are not strictly related to the job that I’m doing, but rather I would satisfy my need through the money that I obtained to that job. I earn some money to satisfy my needs, spending those money.” (e.g. I love travel and I’m extrinsically motivated. I love something, and I go to work to earn and satisfy the needs) there is a sort of influence by the things that are outside the job. Work motivated by yourself - Intrinsic motivation→ much related to what you’re doing while working. The content of work, the atmosphere, the organisational climate, the opportunity in terms of personal development (e.g. a lot of training). Aspects strictly related to the work. The manager gives you the sense of what you are doing. You are motivated by the elements of the job that you are doing. You are motivated by the things you are doing now. All of us can be extrinsically or intrinsically motivated. There is not a negative and positive position. You might be a very experienced motivated worker, but your organisation is not able to give you stimuli, in that case you may go on the extrinsic side. Anything depends of different motivation and on how the organisation is able, and your manager too, to satisfy employees. Nice balance between the two. If an organisation has a person so much intrinsically motivated (80 % of his/her motivation is intrinsic and 20% is extrinsic) but the company is so bad in rewarding a person and that company start to reward more extrinsic people rather than to more recognition, and the company starts to give you only money, your extrinsic motivation will be going to increase. You could be a person 80% extrinsically motivated and 20% intrinsic (inversion). This balance is really hard to understand. Strange balance between these aspects and managers need to be aware of them. MOTIVATION AND JOB SATISFACTION Motivation is related to job satisfaction. Job satisfaction is a hard to manage concept. It is not the same as motivation. The job satisfaction is more of an attitude, an internal state, it could be associate with a personal feeling of achievement, either quantitative or qualitative. Motivation is a process than may lead to job satisfaction, pushes you to do something. You are motivated, you act and achieve you achieve your objectives and at the very end you will be satisfied. EARLY APPROACHES TO MOTIVATION AND JOB SATISFACTION There are some theories related to the job satisfaction: Scientific management (they don’t consider social aspect, leadership style and other aspect out of the single PAY) - Based on the simple premise of satisfaction of economic needs - Rational economic concept of motivation - Workers would be motivated primarily by the satisfaction of the highest possible wages (“Fair day’s work”) Hawthorne experiments (based on other aspects, not just money) - People are motivated to work in order to satisfy a range of different, complex needs. Not simply monetary rewards! (e.g. staying with other, development as a person) - Emphasis on phycological and social needs, group values, styles of leadership, content of work - Neo human relations and theories of motivation base in the personal adjustment of the individual and the content and meaning of work We could see 2 different ways defining and perceiving motivation. In scientific management motivation is really related to pay. In Hawthorne studies is connected to new relation theories and social aspects. THEORIES OF MOTIVATION What motivates people? There is not one single answer and one single theory. There are a number of theories that may help us to understand the concept of motivation. Theories are not conclusive, but they help to highlight the many motives which influence people’s behaviour and performance (collectively they provide a framework). TWO BROAD APPROACHES TO THE THEORIES OF MOTIVATION: CONTENT AND PROCESS THEORIES - Content theories → Emphasis on WHAT MOTIVATES and attempt to explain those specific things which actually motivate the individual at work. These theories identify individual’s needs and the goals they pursue in order to satisfy their needs. – Maslow hierarchy of needs model – Herzberg’s two factor theory – McClelland theory of achievement motivation. - Process theories → Emphasis on ACTUAL PROCESS OF MOTIVATION, the whole process of motivation, attempt to identify the relationships considered the important relationship existing between variables. Talk about the important relationship between processes. Among the dynamic variables which make up motivation – Expectancy theory – Equity theory – Goal theory. The need for achievement underlines the higher level of Maslow hierarchy (and also Herzberg). Main sets of needs: - Need for affiliation - Need for achievement - Need for power People possess all main sets of needs but with different intensity. McClelland concentrates on how managers can develop the need for achievement in subordinate staff. PROCESS THEORIES OF MOTIVATION Process theories attempt to identify relationships among the dynamic variables which make up motivation Contribute to understand of behaviour and performance at work. How behaviour is initiated, directed and sustained. We don’t focus on individual needs but on the whole process, what are resources and inputs. We have: - Expectancy theory →A person could make an effort only if she/he would recognize that awarded are available. I put effort to achieve a performance if I know that for that performance there is a recognition. There is a process that should be considered. We could have an: - Effort - Performance and - an outcome it tells that it has to be three ingredients in order to have this process complete. The first one is that if you make an effort you’re really achieve the performance that the company asked. This is expectancy. I move one finger if I know that the performance is requested by the company. If I perform well than requested, I could obtain instrumentality (high pay). They give me the rewarded value. There would be a balance. These three aspects must be respected. If I make an effort I achieve the goal of the company that expend to me. The second step is instrumentality. Vroom VIE Theory - Valence-The feeling that individuals have about specific outcomes; the attractiveness or preference to the individual of a particular outcome - Instrumentality-The extent to which performance-related (first level) outcomes lead to the satisfaction of need related (second level) outcomes. E.g. good performance is instrumental to reach higher wages promotion etc. - Expectancy-Degree of probability that the choice of a particular action will actually lead to the desired outcome. - Equity theory → in this case the motivation is driven by the perception of equity. People expects certain outcomes in exchange of their efforts. An important aspect is that equity is always a perception. Any manager makes people aware of how there are treated. Of course, there are behavioural consequences: perceived equity, tension, motivations. It can cause changes in inputs, outcomes, distortion, the field, acting on others, change the object of comparison. Equity theory focuses on people’s feeling of how fairly they have been treated in comparison with the treatment received by others. People do expect certain outcomes in exchange for certain contributions or inputs (exchange process). Equity perception. Behavioural consequences of inequity - Goal theory (goal setting theory)→ the importance of goals. People with specific quantitative goals will perform better than people with no set of goals! • People’s goals or intentions play an important part in determining behaviour. • People strive to achieve goals in order to satisfy their emotions and desires. • Goals guide people’s responses and actions. • Goals direct work behaviour and performance! Practical implications for managers: • Specific performance goals should be systematically identified • Goals should be set at a challenging but realistic level • Complete, accurate and timely feedback and knowledge of results associated with higher performance • Goals can be determined either by a superior or by individuals themselves HUMAN RESOURCE MANAGEMENT Ana Garcia Granero HUMAN RESOURCE MANAGEMENT AND INNOVATION What is innovation? Something new that never existed before. New concepts (e.g. Air bnb→ new way of doing business, it implements the market, it started with an innovation and now has new other innovations; e.g. park which architecture is very sophisticated; these two companies manage the human resource department in certain way), implementation of new ideas. Tidd and Bessant 2013 “the process of turning new ideas into reality and capture value from them”. In 2003 OCDE “an innovation is the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organisational method in business practices, workplace organisation or external relations” In 2014 Anderson said that “Creativity is not the same as innovation. Creativity is the first part of the process to implement new ideas. Experiment Video ted talk: puzzle of motivation • Candle • Tacks • Matches Functional fixation THE ROLE OF HUMAN RESOURCE MANAGEMENT IN FORESTING CREATIVITY • Within organisations the objectives and type of tasks to be performed vary considerably. However, today innovation is one of the key elements to performance, and creativity is fundamental in this process. • To achieve successfully creative tasks individual’s, need to think out of the box • Human resource management is necessary in order to incentivize creativity • Incentives based on intrinsic motivators work better for creative tasks • Incentives based on extrinsic motivators may inhibit creative tasks • This logic explains very well why incentives in R&D department differ from those in production. Motivation is one of the most important function in HR. in the HR: - Uptake employees → has 3 different parts (Recruitment, Selection, Socialization (integration in the organisation) - Develop employees - Motivate them → the monetary compensation (extrinsic); working conditions, job enrichment, participation (intrinsic) DR development - Training → process through which people acquire, modify and develop knowledge, skills, and attitudes - Professional development → the development of professional career as a particular case of HR development. 09/11/2018 PERFORMANCE MEASUREMENT AND EVALUTATION Nick Zubanov Incentive → a kind of reward. We live in a world of incentives. Conditional own performance. Good performance means high reward. Incentive weak → Performance measurement → to practice incentives Performance evaluation is a tricky business An example of performance evaluation Incentives in terms of monetary aspects of the job. Scientific principles of performance measurement - Scientific methods → you get observation Scientific principles of performance evaluation - Monetary → as precise as economically reasonable (the monitoring intensity principle) Performance measure varied on how precise is. Subjectivity. Scale to determine a performance. To make measure performance right→ from less precise to more precise measurement. We can measure. - Use all the available information about effort (the “informativeness principle”)→ logic extension - Reflect all the activities that are important for the P and reward them in proportion to their contributions (the “equal compensation principle”)→ e.g. Vietnam wet oceanic climate 20th century no water in houses, French colonists, they tried to practice incentives. Put adverts in walls of houses, they incentive bonus to kill rats. People were recompensed to bring rats’ tails. They started to have rats in their houses to grow them, proliferation of rats. Their measured was not scientific connected. They choose the measure of performance that didn’t reflect all measure performance of the organisation. All the activities are in proportion of the contribution. Performance is multidimension. - Be influenced by A’s effort in the same way as the outcome desired by P (the “alignment principle”) philosophic and the deepest principle. Number couldn’t summarize performance. Gets money 09/11/2018 HRM STRATEGIES, STRUCTURES, AND STYLES: THE CASE OF AIRLINES Today: - Managerial strategies, structure and style Definition - Strategy → major sets of policies and practices. There are many types of strategies: intended strategies. Levels of strategy (first order, second order and third order). This relates to business model (seeing new market opportunities, identifying the right structure and resources to carry out the strategy). Example of business model McDonalds, Deliveroo, taxi company like Uber or Airlines, British Airways, Alitalia Lufthansa. - Structure → the organizational forms the firm takes. They have different forms: S (small, single product, single establishment), H (holding company), U (unified and centralised), M (multidivisional), N form (network form). Structure shapes HR strategies. Structure of HR, e.g. staff department called HR and line managers. Another important thing in some countries we have external bodies (e.g. Germany and Scandinavia), organize training. - Styles → high level beliefs, values, perspectives, ideologies, the way top manager grow organisation, frames of reference. There is a sort f lower level style, behaviour, approaches, tone. Style is about how top management convince itself and the others. HR practices are shapes by strategies, structure and style. Two examples of styles: high (employers assume high responsibility, have good rights, legal and non-legal, discretion, have a voice, we might call it a “high road” style and low (employers take little responsibility, have few rights, perhaps mainly coming from law, little discretion. Unitarist style (they form a community, a team analogy, employer and employees have the same interest, all pull together but management has the right to manage, because it represents the owners, it creates conflict, irrational, unions are unnecessary. Pluralist style (in modern big organisation there are separate groups with different aims and interest, legitimate differences create inevitable conflict, bargaining compromise and bring together at the end of the day. HRM is about rules - Processes which regulate jobs and people at work - Substantive e.g. money, benefits, hours procedural e.g. who decides - Three areas Rules can be created in different ways: - Unilateral by management - Individua bargaining - Established practice - Joint bilateral regulation - State regulation the law supra national regulation - Trilateral state, employers, unions History 1. Work relations 2. Employment relations 3. Industrial relations Three time periods: - First industrial revolution → steam, textiles, mining, iron, railways. - Second industrial revolution → electricity, steel, chemicals, electrical products, autos - Third/fourth industrial revolution→ information and communications technology, digitalisation, advanced manufacturing, services, retailing Early 20th century many unskilled jobs on the land and in early industry, but also craft production in e.g. much of metals, shipbuilding (broad skills Adam smith, limited division of labour, control by craft workers). Mid 20th century → move away from craft production and towards mass production, subdivisions job, decline of sub-contracting, mass production, moving assembly line, machine pacing, more repetitive tasks, main period 20-60. 21st century→ new search for more flexibility, functional flexibility, driven by sophisticated things, broader jobs, team working, “lean production”, Mc Donald, Amazon + new “gig” economy e.g. Deliveroo. Renewed INTRODUCTION TO HRM IN THE TOURISM INDUSTRY WHAT MAKES UP THE TOURISM AND HOSPITALITY WORKFORCE? A BRIEF SNAPSHOT What the work force is? You have to manage people and what kind of workforce exists. At list 1 job in 12 in this sector compared to other sectors, is employed in the tourism industry. There are other aspects that HR managers should be aware of to work in this industry and some issues, nice figures (63% of chefs are men, 79% of travel agents are women). In this kind of sector there is much more flexibility. High proportion of ethnic minority. More micro workers compared to other sectors, a lot of diverse workforces. According to a report of ILO (2001) the tourism and hospitality industry largely relies on ‘marginal-workers’ (Wood, 1997) such as: women, young workers, casual employees, students, relatively high numbers of part- timers and migrant workers. - Gender segregation: 63% of chefs are men; 79% of travel agents are women - Young people are prominent: only 19% over the age of 50 (People 1st, 2010), student important segment (ILO, 2001). Work for low wages and be flexible in their working pattern. - Ethnic minority is 14%, higher than the economy as a whole which is 9% (People 1st, 2010). - Migrant labour one-fifth of the workforce were born overseas (Lucas and Mansfield, 2010). HUMAN RESOURCE MANAGEMENT-DEFINITION We recognize HRM as being broadly about how organizations seek to manage their employees in the pursuit of organizational success. Storey (1995: 5)→ “HRM is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques.” HR practices has to be linked to strategic goals of the company. Activities are listed. All activities facing with employees. The challenge of HRM is on how to recruit, deploy, develop, reward and motivate staff leading to them being a source of competitive advantage. About managing HR. What HR means? - Deal with employees → the organisational units (function); HRM (managing Human resources, in back office or rather might spread out the organisation, supervisors)→ any managers need to be in contact with HR. The assessment is delegated. Superiors are in charge of assessment. But HR department carries them out. - Need--------→ retainment - Process HARD AND SOFT VERSION OF HRM There is more than one route to seeking competitive advantage and this point is further considered in examining the notion of ‘hard’ and ‘soft’ HRM. Storey (1987) outlined two ideal types of human resource management: Hard vs Soft version of HRM. Differences between Hard and Soft: - Hard → rational, instrumental, control employees in order to maximize profit. The focus is resource management. People are considered resources. Human resource management is driven by strategic considerations to gain competitive advantage, maximizing control while achieving the lowest possible labour cost. This approach is quantitative and calculative and labour is a commodity/resource, the same as any other. The focus is on the resource management aspects of HRM. - Soft → Humanistic, developmental version. Manager is more consensual. Look much more on employees, much more trust. In this case we’re looking the human aspect rather that resource expectative. Employees are ore productive (e.g. theory X, Y are similar to this concept). Human resource management is more consensual, based on a high level of managerial commitment to employees, which supposedly leads to high trust, high productivity and so on. Employees are seen as being proactive and capable of development and worthy of trust and collaboration. The focus is on the human aspects of HRM. According to hard-soft view employers will vary their people management strategy. How organizations may engage in both hard and soft HRM approaches simultaneously? Contrasting approaches for pursuing a low-cost business strategy in the airlines industry. Comparing Ryanair and Southwest…These two visions tell us that we’re trying to look human aspect. They start from the point that there are employee unions. In the case of Ryanair employees are much more controlled. How they manage employees and face unions? Southwest try to concentrate on human aspect, relational companies, pursuing goals. Ryanair is in charge with a core group. Employees are simply going to course ruling and don’t care about other aspects. Two kind of strategies, they might be goods but how can we: - Attention to cost - Mutual respect Ritz Carlton is in between hard and soft HRM. BEST FIT VS. BEST PRACTICE The best fit school → The best-fit school argues for an approach to HRM that is fully integrated with the specific organizational and environmental context in which they operate. All the ingredients of our organisation have to be well integrated the one to the other. What are HR strategies. Building from strategies, to different behaviours to what are the strategies. One of the earliest and most influential attempts to develop a model that recognized the need for a fit between the competitive strategy and HRM. Schuler and Jackson (1987) developed a series of typologies of needed role behaviours that enabled the link between competitive strategy and HRM practices: - Innovation strategies→ new services and products→ you need some sort of behaviour. the way through with you train, select, access people because you want people in specific way. The company ensure that those behaviours are acted. You might have one specific behaviour. ask for the behaviour. specific human resources strategies. Strategies have to fit. - Quality strategy → good feedback system, teamwork, mutual trust, decision making and responsibility (Fayol) - Cost reduction strategy → low level risk taking, no uncertainty, stability- strategy linked to the role. The best practice→ The best-practice school argue for a universalistic approach to HRM in which all firms who adapt a range of agreed HR policies and practices are more likely to create a high performance/commitment workplace as organizations aim to compete on the basis of high quality and productivity. universalistic practice, good for any kind of company. Best practice that can may apply. The second one is not the right one. We can look at how best companies manage people but after having look are those strategies coherent to company? Pfeffer (1994; 1998) initially identified 16 practices that denote best practice, which were later refined to seven practices: Activities that might be taken, they are considered as best practices: - Employment security They couldn’t be applied in every kind of organisation (sharing information would not be affordable for a company concentred in efficiency and cost reduction, extensive training as well Redman and Matthews (1998) identify a ‘HRM bundle’ of key practices that support service organizations’ quality strategies, these being: - Recruitment and selection – recruiting and selecting staff with the correct attitudinal and behavioural characteristics. A range of assessments in the selection process should be utilized to evaluate the work values, personality, interpersonal skills and problem-solving abilities of potential employees to assess their ‘service orientation’. - Retention – and the need to avoid the development of a ‘turnover culture’, which may of course be particularly prevalent in tourism and hospitality. For example, the use of ‘retention bonuses’ to influence employees to stay. - Teamwork – the use of semi-autonomous, cross-process and multifunctional teams. - Training and development – the need to equip operative-level staff with team-working and interpersonal skills to develop their ‘service orientation’ and managers with a new leadership style, which encourages a move to a more facilitative and coaching style of managing. - Appraisal – moving away from traditional top-down approaches to appraisal and supporting things such as customer evaluation, peer review, team-based performance, and the appraisal of managers by subordinates. Generally, all of these performance appraisal systems should focus on the quality goals of the organization and the behaviours of employees needed to sustain these. - Rewarding quality – a need for a much more creative system of rewards and in particular the need for payment systems that reward employees for attaining quality goals. - Job security – promises of job security are seen as an essential component of any overall quality approach. - Employee involvement and employee relations – by seeking greater involvement from employees, the emphasis is on offering autonomy, creativity, cooperation and self-control in work processes. The use of educative and participative mechanisms, such as team briefings and quality circles, are allied to changes in the organization of work that support an ‘empowered’ environment. It is a process always on going, it has to take care of different positions, different recruitments process (a cashier in the supermarket and a recruitment of manager→ different process in terms of selection and recruitment, longer process probably to cashier and not for the manager. It depends on the profile). HR professionals might ask themselves the following questions: - What does the job consist of? For documents - In what way is it to be different from the job done by the previous incumbent? - What are-… (slide) - The last question for the advertisement RECRUITMENT AND JOB ANALYSIS Gathering information about that position in order to have a clear picture. The report of that position. Job analysis is the process of collecting, analysing and setting out information about the contests of job in order to provide the basis for a job description and data for recruitment, training, job evaluation and performance management. Job analysis concentrates on what job holders are expected to do (Armstrong 2009:444). Undertaking a job analysis is not necessary every time a vacancy arises. It should take place for every position at least once per year. It is the systematic process of data collection and analysis of tasks, duties, responsibilities, KSAA and working environment for each position within the organisation. The methods to gather data: - Observation→ e.g. when you want to redesign an organisation. - Work sampling → e.g. consultancy, for technical positions to have guidelines to hire. - Interviewing → direct interview, the easiest one and cost effective. - Questionnaires - Combination method → questionnaires + interviews. Job description is a document that allows the purposed of the job, the task involved, the duties and responsibilities, the performance o objectives and the reporting relationship, knowledge, skills. It should provide clear information to candidates about the organization and the job itself. 1) Physical characteristics 2) Attainments 3) General intelligence - Impact on other people - Qualifications - Innate abilities - Motivation - Adjustments Areas of competencies: - Team orientation - Communication - People management - Customer focus - Result orientation 2nd ASSIGNMENT → Job Description HOW CAN ORGANIZATION ATTRACT THE INTEREST OF APPROPRIATE POTENTIAL EMPLOEES? An organisation has to look to potential employees. Internal or external candidates? Internal recruitment methods - Job posting (an advertising written, in front door or any office, internet) - Skills inventories → the HR department furnishes data about employees, makes inquires - Internal network referrals→ you might ask to all managers at the same level if they have some candidates that might fit this position. External recruitment methods - Advertising - Employee referrals - Field recruiting - Internship - Professional recruitment Firms/recruitment agencies - Internet (on line recruitment) Obviously, we have advantages and disadvantages. THE IMPORTANCE OF THE TARGET GROUP IN RECRUITMENT Low coast companies recruit new candidates→ very cheap way. Yung people who speak languages, want to travel. 28/11/2018 RECRUITMENT Difference between recruitment (to attract potential employees, interests in the company) selection (how organisations match potential employees to jobs via the process of selection, when organisation will decide who is the most appropriate person for the job (starts from when candidates send they CV). SELECTION One of the very key process of HR department. It Is the process of assessing job applicants using one or a variety of methods with the purpose of finding the most suitable person for the organization. It is the process through which organisation make decisions about who will or will not be allowed to join the organisation. - Selection begins with the candidates identified through recruitment - It attempts to reduce their number to the individuals best qualified to perform available jobs - It ends with the selected individuals placed in jobs with the organization Step by step you reduce the number of candidates. STEPS IN THE SELECTION PROCESS The process of selecting employees varies considerably from organisation to organisation. At most organisation selection includes five steps: - Screening, applications and Résumés → of CV - Testing and Reviewing Work Samples → makes a lot of tests (ability, intelligence) when you hire for example shop assistants. - Interviewing candidates - Checking references and background → If the person brings some references. - Making a selection Not all stages are covered in each selection process and with this specific order. It depends on the specific situation. For example, for specific position (e.g. senior managerial position) only interview might be needed (instead of testing). Also, for some position a huge number of candidates may apply, in this case test might be a good solution for a first cost effective screening. In the end, for small companies a less structured process may be used (e.g., without tests and referrals checking) but just with interview. POSSIBLE METHODS: HOW CAN WE PERFORM SELECTION PROCESS? (the classic trio) - Application form - References - Interview → is the most straightforward and least extensive approach. If an interview is done with certain criteria, for sure is the key instrument for a good selection process. It is considered a conversation with a purpose with four objectives: -Decide if an applicant is suitable for a job -Decide if a person fit into the existing work group or organisation as a whole -Attract applicants to the job -Communicate essential expectation and requirements of the job INTERVIEWING TECHNIQUES - Non-directive interview → not high level employees. A selection interview in which the interviewer has great discretion in choosing questions to ask each candidate. - Structured interview→ consists of define a predetermined set of questions for the interviewer to ask. - Situational interview→ interviewer describes a situation likely to arise in the job, then asks the candidate what her or she would do in that situation. - Behaviour description interview (BDI)→ a structured interview in which the interviewer asks the candidate to describe how he/she handled a type of situation in the past. (based on real experience) - Panel interview → selection interview in which several members of the organisation meet to interview each candidate. OTHER TECHNIQUES - Aptitude tests test → specific abilities in relation to verbal, numerical, spatial or mechanical skills to provide an indication oh how all applicants will cope with the job - Physical ability tests → e.g. muscular tension and power, cardiovascular endurance, coordination etc. - General ability or intelligence tests → sometimes called cognitive ability tests measure mental abilities such as analytical reasoning and ability to think critically - Dexterity or attainment tests → respectively, for manually skilled employees and for example typing skills