• Knowledge of effective management: Learn management theory that helps you shape and navigate internal structure to be effective in organizations (as member or manager)
• Skills of effective management: Knowledge-based decision making
• Building managerial identity: Effectiveness from feeling and behaving as a manager

Levels of management

• MACRO: Managing entire organizations
• MESO: Managing within organizations and between people
• MICRO: Managing oneself and individual people

Making management a profession

• Khurana, Rakesh and Nitin Nohria. “It’s Time to Make Management a True Profession.”Harvard Business Review, October 2008. https://hbr.org/2008/10/its-time-to-make-management-a-trueprofession
• Barker, Richard. “No, Management Is Not a Profession.”Harvard Business Review, July-August 2010. https://hbr.org/2010/07/the-big-idea-no-management-is-not-a-profession

Inventivizing perormance

Extrinsic and intrinsic foundations of motivation

What is motivation?

The process of arousing and sustaining goal-directed behavior. Motivation is an internal mental state that energizes human behavior in an intended direction. Definition Ref

Individual Performance = f(Motivation X Ability)

• Extrinsic motivation “desire to perform a behavior in order to acquire material or social rewards or to avoid punishment (pay, praise, and status).
• Intrinsic motivation “desire to perform a behavior for its own sake; workers believe that the work gives them a sense of accomplishment and achievement or that they feel that they are doing something worthwhile.

Note: Apply concepts of motivation to facilitate organizational effectiveness and creativity

• Pearce, Jone L. Chapter “Managing Incentives” in the latest edition of Organizational Behavior: Real Research for Real Managers. Irvine, CA: Melvin & Leigh.
• Mini-case : Ron Avitzur. 2004. The Graphing Calculator. www.pacifict.com/Story
• Krakovsky, Marina. “The Effort Effect.”Stanford Magazine, April 2007. https://stanfordmag.org/contents/the-effort-effect
• White, Erin. To keep employees, Domino’s decides it’s not all about pay. The Wall Street Journal Friday, February 18, 2005. 5. Case : Pfeffer, Jeffrey. 1998. SAS Institute. Case
• Money (and other extrinsic rewards) motivates, but it is ineffective in promoting creativityand knowledge-intensive performance
• Unless you make non-economic non-extrinsic incentives matter in your organization, outstanding achievements, particularly creativity and innovation, will be unlikely in it
• Be aware of the effort effect and its implications for hiring and task assignment The effort effect.

Effectiveness from Diversity

Better understand the opportunities and pitfalls of diversity in organizations to, improve organizational effectiveness and avoid legal problems.

Three Paradigms of Diversity

1. Assimilation: All treated the same. Nothing changes.
2. Differentiation: Acknoledge, but separate.
3. Integration: Let the diverse people change organization. Core of business can change because of diversity.

Discrimination

Discrimination is disadvantaging people because they belong to protected classes (groups): Sex, Sexual orientation, Race, Color, Creed, Age … (and more).

• Case: Joseph and the Company Party
• Case: The Part-time Partner

Types of Discrimination in Organizations

• Taste discrimination “disadvantaging people because of disliking the group they belong to
• Statistical discrimination “disadvantaging individuals because of low average performance in groups they belong to
• Error discrimination “same as statistical discrimination, except that the belief about the average group performance is wrong
• Disparate impact “using a trait correlated with group membership to discriminate (e.g. Latinos get disadvantaged if height is used as a criterion in hiring to police)
• Internalized prejudice, or self-discrimination “belief that certain positions are not appropriate for members of your own group

Merit of the person, vs merit of the group. Make decissions based on people merit, not becasue they belog to a group.

Cases

• Case: Thomas, D. & Ely, R. “Making Differences Matter: A New Paradigm for Managing Diversity.”Harvard Business Review, September/October, 1996, pp. 79-90.
• Case : Loveman, Gary. “The case of the part-time partner.”Harvard Business Review, September/October 1990.
• Mini-Case : Okhuysen, Gerardo. 2013. Joseph and the Company Party.

Effectiveness from Culture

Culture is shared understanding of what actions and symbols mean. Culture is a tool in a managers toolkit. Think aobout network vs hierarchical culture.

During the 1970s northern California’s Silicon Valley and Boston’s Route 128 attracted international acclaim as the world’s leading centers of electronics innovation. Both regions were widely celebrated for their technological vitality, their entrepreneurship, and their extraordinary economic growth. Read more.

Types of Culture Most Consequential for Business

1. Organizational Reese (1996), Elon Musk
2. Regional Saxenian (1996)

3. National

    "There is no reason for any individual to have a computer in his home."
         -Ken Olsen, CEO of DEC, 1977
   

Management of culture helps organizations be effective by aligning the culture with its goals. Organizations that ignore the management of culture miss out on a major way of improving effectiveness. Locating the company or team in the appropriate culture is one way of aligning its culture with goals

1. Saxenian, AnnaLee. 1996. “Inside-Out: Regional Networks and Industrial Adaptation in Silicon Valley and Route 128.” Cityscape 2(2):41-60. Link
2. Wikipedia article on DEC
3. Reese, Jennifer. 1996. Inside the Coffee Cult. Fortune.
4. Musk, Elon. “Acronyms Seriously Suck.”

Effectiveness from Networks

Social networks are patterns of relations (among people or groups or organizations).

• Bill Gates -> Mary Gates -> John Opel.
• Cosimo de Medici (1389-1464) (Banker, Florence, Introvert)
• Paul Revere (Politics)

After a basic level of competence, it’s about your network. The structure of the network is of higher value.

Basic Network Concepts

• Tie - Directed may be asymmetric and Not directed always symmetric
• Node - network member (e.g. person or firm)
• Indegree - # of ties received
• Outdegree - # of ties sent
• Isolate - node with no ties
• Centrality

Bridges and Brokers

Brokers: A broker connects otherwise disconnected networks. It’s important because it places you in a strateigic position. Structural hole: Lack of conectedness in ones’s netowrk neighberhood.

The Strength of Weak Ties by Granovetter 1973.

Weak ties: Simple. Open information Strong ties: Complex and secret.

Individuals whose networks combien professional and social ties are more effective as managers and leaders. Joint activities:

• Develop trust
• Develop mutual knowledge
• Create a shared experience
• Connect poeople with similar personalities and interests.

An Effective Individual Network

1. A mix of weak and strong ties
2. Rich in brokerage opportunities
3. A combination of professional and social relations (e.g. trust)
4. Built with brokers’ introductions
5. Built in joint activities

Don’t overstrategize but also don’t neglect your networks.

Nicollo Machiavelly

Robust action:

• Hard for observers to interpret and motivation.
• Position in social networks that bridges otherwise isolated factions.

Other networks

• Erdös Numbers
• Kevin Bacon Numbers

1. Uzzi, Brian and Shannon Dunlap. “How to Build Your Network.”Harvard Business Review, December 2005. https://hbr.org/2005/12/how-to-build-your-network
2. Cascsiaro, Tiziana, Francesca Gino, and Maryam Kouchaki. 2016. Learn to Love Networking. Harvard Business Review. https://hbr.org/2016/05/learn-to-love-networking
3. Case : Tempest, Nicole and Kathleen L. McGinn. 2000. Heidi Roizen. Harvard Business School. (CP)

Origings and Rewards of Creativity

• Creativity is generation of new and valuable ideas
• Innovation is successful implementation of such ideas

Note: This is similar to a definitions I once heard: Engineering: The porpuseful use of science.

Origins of Innovation

1. Technical: Innovation happens due to technical ideas
2. Personality: Innovation happens due to personal traits of individuals, particularly organizational leaders
3. Organizational: Innovation happens because of how formal and informal organizations are designed and managed

Note: Elon Musk’s first wife explains what it takes to become a billionaire

Organizational Origins

1. Intrinsic rewards
   • Extrinsic rewards do not motivate individuals to be creative.
2. Networks
   • Innovation happens in networks, requires constant interpersonal communication. You leverage different types of networks at different stages of innovation.
   • Briding capital. Sparse egocentric network. You connect disconnected poeple. Facilitates creativity.
   • Bonding capital. Dense egocentric networks. Your every contact is connected to almost every other contact. Facilitates innovation.
3. Incremental improvement
4. Organizational welfare

Creativity is risky, most creative projects fail.

Managing Uncertainity

1. Gabarro, J. J. & J. P. Kotter. 2005. Managing Your Boss. Harvard Business Review. (CP) 2. Case : Gabarro, J. J., T. J. DeLong, & J. Soo. 2011. Eric Peterson at Biometra. (CP)

Implementing Organizational Change

1. Gratton, Lynda. “Connections and Conversations Provide the Fuel for Innovation.”Financial Times, December 30, 2006.
2. Hamilton, Joan. “Take My Word for It.”Stanford Magazine Nov/Dec 2005. https://stanfordmag.org/contents/take-my-word-for-it
3. Diamond, Jared. “The Curse of QWERTY.”Discover April 1, 1997. discovermagazine.com/1997/apr/thecurseofqwerty1099

Build poeple’s interest systematically and patiently. Attempts to take shortcuts (i.e. disruptive actions without enough credibility) backfire.

Know the poeple you are trying to influence. * Some poople prefer face-to-face interaction, others indirect interaction * Some are more, other less difficult to move between different stages of change.