Reminders

1. Both “empty” and “full” slides are now available at the course website.

2. Individual paper proposals may be submitted at any time, but the sooner the better.

3. Sending you a mid-term advisory this week or week-end.

4. New course announcement!

Managing Across Cultures BUSI 197 (1.5 credits – Mod IV)

* Prerequisites BUSI 100 and BUSI 150 with grades of C or better

Announcing a new mod-length course being offered for the first time during Mod IV that provides hands-on understanding of the opportunities and challenges involved in working across geographic and cultural boundaries

• Highlights include:– Investigation of current cross-cultural

management research and theory

– Interaction with students from universities around the world, working with you in virtual teams

– In-class sessions that build upon virtual team interactions using a variety of case studies & interactive exercises

Information Technologyand Control

BA 152

Characteristics of Organizations:BA 152 Perspective

GOALSSTRATEGIESSTRUCTURES

TECHNOLOGIESSYSTEMS

PeopleFIT!Cultures

Environment

Direction of InformationSystemEvolution1. Operations

• Transaction processing systems• Data warehousing

2. Business Resource• Management Information systems• Decision Support Systems• Executive information systems• Management control systems• Balanced Scorecard

3. Strategic Weapon

• Intranets• ERP• Knowledge Management

INTERNAL• Extranets, EDI• IntegratedEnterprise•E-Business

EXTERNAL

LOW SYSTEM COMPLEXITY HIGH

MANAGEMENTLEVEL

TOP(strategy, plans,

non-programmed)

LOWER LEVEL

Evolution of Organizational Applications of Information Technology

Data, Information, & Control

• Data - Input from any communication channel

• Information - Data that alters or reinforces understanding

• Control - Evaluation of information that provides the basis for future actions

Information and DataIn

form

atio

n

DataLow

High

High

Information and Control

Information

Co

ntr

ol

High

Low High

Control Systems:The Key Pieces

PerformanceStandards

BudgetsJob Descriptions

Quality LevelsProduction Goals

PerformanceMeasures

Cash-on-handPerformance Appraisals

Process InspectionsProduct Counts

Comparison

Actions (if necessary)

Major Control Approaches

• Market Control - control by prices, competition, markets, and exchanges

• Bureaucratic Control - control by rules, standards, hierarchy, and authority

• Clan Control - control by culture, values, tradition, and trust

Control Systems:What gets controlled and how?

QualityAppraisalsPricesOutput

NormsPoliciesMaterial Costs

Process

Selection

Criteria

BudgetsStarting Salaries

Input

ClanBureaucracyMarketHow

What

Supervisory Control Strategies

Input Control - control by virtue of selection criteria and training

Behavior Control - control by observation of employee actions

Output Control - control by the amount of work completed

Supervisory Control Strategies What works best when?

Are Tasks Structured?YES NO

YES

Are OutcomesMeasurable?

NO

Use behaviorand/or

output control

Use input and/or output

control

Use behavioralcontrol

Use input,clan, and/orself-control

Developing Effective Control Systems

1. Involve employees in the process, as appropriate

2. Focus on results, not simply on measurement

3. Keep the system as simple as possible

4. Insure timely information to and from the system

5. Make sure the system fits with the firm’s culture, strategy, and structure

6. Anticipate second-, third, and fourth-order effects

Developing Effective Control Systems

Effective Control Systems:Keep the following in mind

1. What gets measured is what will get done!

2. System costs must be considered.

3. Too much information can be as bad as too little.

4. You can’t make just one decision.

Control Systems

The Balancing Act

ControlControl AutonomyAutonomy

Knowledge Management

• Consider two different types of knowledge important to organizations.– Explicit Knowledge– Implicit Knowledge

Types of Knowledge

• Explicit Knowledge– Knowledge that is formal and systematic.– Knowledge that can be formally taught to

someone.– Knowledge that can be communicated and

shared.– Examples?

Types of Knowledge

• Tacit (implicit) Knowledge– Knowledge that is highly personal.– Knowledge that is acquired as a

function of experience and practice.– Knowledge that is hard to formalize.– Knowledge that is difficult to

communicate, because “We often know more than we can tell.”

– Examples?

Types of Knowledge

Sharing Knowledge:The knowledge spiral

SOCIALIZATION

ARTICULATION

MetaphorAnalogyModel

INTERNALIZATION INSTRUCTION/COMBINATION/

INNOVATIONRedundancyExperienceQuestioning

FROM

Tacit

Explicit

TO ExplicitTacit

Two Approaches to Knowledge Management

For Explicit KnowledgeProvide high-quality, reliable, and fast

information systems for access of codified, reusable knowledge

Two Approaches to Knowledge Management

Mechanisms

Technology

KnowledgeManagement

Strategy

People-to-documentsDevelop an electronic document system that codifies, stores, disseminates, and allows reuse of knowledge.

Invest heavily in information technology, with a goal of connecting people with reusable codified knowledge.

Data warehousingKnowledge mappingElectronic librariesIntranets, networks

For Tacit KnowledgeChannel individual expertise to provide creative advice

on strategic problems

Two Approaches to Knowledge Management

Person-to-person

Develop networks for linking people so that tacit knowledge can be shared

Invest moderately in information technology, with a goal of facilitating conversations and the exchange of tacit knowledge

DialogueLearning histories and storytellingCommunities of practice

Mechanisms

Technology

KnowledgeManagement

Strategy

Two Approaches to Knowledge Management

Communities of Practice

• Collections of individuals– Bound together by informal relationships– Sharing similar work roles– Sharing common work context– Not constrained by geographical, business unit,

or functional boundaries

Communities of Practice

• “Practice” suggests how individuals actually do their jobs as opposed to their formal job descriptions from their firm.

Collective Comparisons

As long as people need to

connect

Mutual needsFriends & business contacts

To collect & pass on

information

Informal network

Until project is completed

Milestones and project

goals

Assigned by senior manager

To complete a specific

task

Project team

Until the next reorganization

Job demands and common

goals

Those reporting to

manager

To deliver a product or

service

Formal work group

As long as there is interest

Passion, commitment, identification

Members select

themselves

To build & exchange knowledge

Community

of practice

How long does it last?

What holds it together?

Who belongs?

Purpose?

• Why should we allow/encourage but not attempt to formally “manage” COPs?

1. They can help drive strategy.

2. They can start new lines of business.

3. They can solve problems quickly.

4. They are able to transfer best practices.

5. They develop professional skills.

6. They can help companies recruit and retain talent.

Communities of Practice

Next Time

Organizational Size, Life Cycles, and Decline