Please make sure to bring

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1



Please make sure to bring
all the lecture notes

(up to week 10)


as I
will be summarizing all
the notes today

2


LECTURE
10



Amare Michael Desta

Decision Support &
Executive Information
Systems:


3








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



Many different perspectives

-

Closed system perspective


Organization as instrument to achieve defined goals


Efficiency


Effectiveness


Flexibility / adaptability


Job satisfaction


-

Four activities follow from the above


Complexity and specialization of tasks


Centralization of authority


Formalization of jobs


Stratification of employment levels

4

Closed System View

-

Criticism


View sees humans as machines


Resources are optimised


Not true in all cases


Responses fit into the defined plan


Environmental influence seen as only noise

5

Open System View of
Organizations


Interested in both the objectives and
responses to internal and external influences


Organizational activities (Weick)


Enactment, selection and retention


Results of these are


Understanding of the environment


Recognizing problems


Diagnosing causes for problems


Identifying policies to solve problems


Evaluating the efficiency of the policies


Selecting priorities for problem solving

6

Organizational Learning Model

(Daft & Weick)

Three major components

-

Scanning


Monitoring the environment

-

Interpretation


Translating observations

-

Learning


Knowledge about relations between
organization’s state and environment


Actions

7

Generic Roles for Executives

To achieve the defined goals
FOUR

different

Roles

are needed by executives

-

Administration


Caretaking role

-
Management


Concerned with efficiency

-
Leadership


Setting of a vision and seeing it through

-
Governance


Stakeholder management

8

Organizational Topographies


Inactive organization


Tries to avoid problems


Waits them to go away


Reactive organization


Problem solving organization


Internal environment


Interactive organization


Tries to adapt to external environment


Development of responses to external environment


Proactive organization


Learning to learn better


Adaptive behaviour

9

Organizational Learning


Organizational learning is needed to
anticipate changes and improve behaviour


Situation assessment


Problem detection


Solution


Evaluation of outcome


Resulting discovery


The learning is not always beneficial in
practice


E.g. improperly simplified causal models

10

Theory of Reasoning, Learning
and Action


Two major inhibitions to learning

1)

Distortion of information


Quality of decisions affected

2)

Lack of receptivity to feedback



Types of organizational learning


Single
-
loop


Present policies to achieve present goals


No questioning of goals


Double
-
loop


New understanding developed


Goals are put under scrutiny


Poor performance organizations usually use single
-
loop learning

11

Theory of Reasoning, Learning
and Action (2)


There are other inhibitions to learning


Distancing


Not accepting responsibility


Disconnectedness


Limited information about theories in use and the associated
actions



Five dilemmas


Incongruity


Inconsistency


Ineffectiveness


Disusability


Unobservability

12

Learning Organization


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



Five disciplines enable this learning


Systems thinking


Personal mastery through lifelong learning


Shared mental models of markets and competitors


Shared vision


Team learning


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

13

11 Laws of Systems Thinking

1.
Future problems come about because of what were presumed
past solutions

2.
Every action has a reaction

3.
Short
-
term improvements lead to long
-
term difficulties

4.
Easy solution is no solution at all

5.
Solution may be worse than the problem

6.
Quick solutions lead to more problems

7.
Cause and effect not necessarily closely linked

8.
Best actions not obvious at first

9.
Low cost and high effectiveness need not to be trade
-
offs

10.
The entirety is more than the sum of its parts

11.
Entire system must be considered together


14

How to Build a Learning
Organization?


Leaders must be


Designers


Stewards


Teachers


Three pragmatic needs


Meaning


Management


Measurement


Five building blocks


Systematic problem solving process


Experimentation


Learning from past mistakes


Learning from others


Transferring the knowledge through organization


15

Assess situation and select
problem for resolution

Problem definition

Generate solution options

Evaluate options and select
preferred option

Implement solution

Evaluate solution

Problem Solving Process

16

Organizational Cultures


Culture closely related to learning


Socially transmitted behaviour patterns


Critical success factors of organizational character


Shared vision


Motivational faith


Distinctive skills


Change in culture must be controlled


Reasons for failure


No shared vision of impending crisis


No shared vision of a way out of crisis


Culture change produces wrong results


People learn in a wrong way

17

Changing Culture


Change is often resisted even though it is known to
be needed


People do not know in which way or how to change


Poor abilities at double
-
loop learning


Past competence a path to success


Stereotypical thinking


Fall into ideological routines


Multiphase approach to change


Access corporate culture


Identify approaches to culture change


Negotiate a shared vision


Deploy the shared vision

18

Culture Clash


Three different cultures

1.
Corporate culture stresses loyalty to organization

2.
Professional culture emphasises given knowledge

-

Loyalty to profession greater than loyalty to organization

3.
Social culture represents the values of individuals


Clash areas


Specialization


Managers <
-
> Employees


Overspecifying practice


Underspecifying the end


Employees want autonomy


Tight supervision


Formalization of control


Principles more important than practice


Short
-
term profits vs. ethics

19

Culture and leadership


A number of studies discuss the interaction of
culture and leadership and the role of these
in creating excellence


E.g Hickman and Silva suggest strategy and
culture as foundations for excellence


They further identify six “new age skills”
aggregated under three more generic (need)
categories



20

Hickman and Silva


The need to forge a strong foundation for
excellence through:


creative insight


sensitivity


The need to integrate organizational and individual
skills through:


vision and


patience


The need for adaptation through:


versatility and


Focus

21

Kotter and Heskett


Kotter and Heskett identified several important
cultural realities:


Organizational culture has a significant impact on the long
term performance of an organization


The importance of culture will increase in the future


Organizational cultures that are debilitating to long term
performance are not uncommon


Organizational cultures can be changed to allow enhanced
performance




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

22

Leadership and management
:
Studies
of individual and organizational leadership



Covey’s
SEVEN

habits of effective people


First three relate to individual concerns


Next three relate to group and organizational
issues


The last concerns learning and renewal


counterbalance independence and


dependence relations

23

Covey


Covey also identifies
THREE

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

1.
Principle
-
centered power, based on honor

2.
Utility power, based on fairness

3.
Coercive power, based on fear


Related to various contexts for learning


24

Covey


FOUR

paradigms that could be used
as a basis for leadership:

1.
The scientific management paradigm

2.
The human relations paradigm

3.
The human resources paradigm

4.
The principle
-
centered leadership
paradigm

25

Badaracco and Ellworth


Badaracco and Ellworth’s identified
THREE
leadership philosophies based on a set of
fundamental assumptions about human
nature and the resulting behavior patterns
of people in organizations

1.
Political leadership

2.
Directive leadership

3.
Value
-
driven leadership


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

26

Rothschild

-

identified
FOUR
major leadership roles

1)
Risk
-
takers
, often creators of an organization who
have the dedication and talent to implement a
strategic vision


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


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


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

27

Kotter


Kotter has distinguished between leadership
and management


Kotter indicates that leadership involves
moving people from one state to a better
state without transgressing on the rights of
other


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


28

Kotter continues…

1.

Agenda creation
. Direction setting is needed to

establish a future vision and strategies for the

needed changes to enable realization of the vision.

2. Developing human networks.

Communication of

the vision and developing a set of shared assumptions

and understanding the vision are needed to achieve

an alignment of people who are committed to

organizational progress.

3. Action implementat
i
on or execution.

Motivating

and inspiring people to move in directions appropriate to

achieve the strategic vision despite the political

challenges and bureaucratic barriers.

29

Cultural Framework Models



Sage introduces two separate works on cultural
frameworks


Bolman and Deal’s (1991), and


Bergquist (1992).



They all are built for a university environment.



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

30

Bolman and Deal’s Cultural
Framework Model


Bolman and Deal (1994) identify
FOUR

frameworks

for modeling organizational culture:


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


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

31

Dolman and Deal (cont.)

3)
political framework;
organization viewed as a
coalition of diverse interests
-

most of which based
on differing values and perceptions of reality


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


ambiguity in organization


-
> formal rational analysis becomes difficult


-
> humans create symbols that become
surrogates for more fundamental and
meaningful events.


32

Bergquist’s Cultural Framework



Berguist (1992) divides
organizational cultures

into
FOUR
:

1)


collegial culture
;

sees diversity of perspective and
autonomy of effort

-
> supports academic governance



-
> supports disciplinary scholarship and
research

2)
managerial culture
; closely associated with junior
-

college culture and any very strongly top
-
down
leadership



-
> acceptance of detailed plans expected

33

Bergquist (cont.)

3)
developmental culture
; orgzns and their
processes designed to effectively accommodate
needs of university (organization)



-
> supports fulfillment of university
(organization) mission


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



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

often includes

bargaining efforts


34

Cultural Dynamics Model of
Oraganizational Forms


This model is developed by Henry Minzberg and
aims to describe organizational
forms
, to help

design effective organizations.


FIVE

mechanisms describe work coordination
approaches in industrial organizations:

1.
Mutual adjustment

2.
Direct supervision

3.
Standardization of work processes

4.
Standardization of skills and knowledge

5.
Standardization of norms.


35

Process maturity
Process
models

1)

organizational lifecycle process maturity

represents the extent to which specific processes are

explicitly defined, managed, measured, controlled

and effective in achieving their intended purpose


2)

disciplined process, teams with common values,

systems management infrastructure, strong

Leadership



process mature organization


36

Crosby


five stages of development of quality
maturity


inspiration for the other maturity models


1.
Uncertainty

2.
Awakening

3.
Enlightment

4.
Wisdom

5.
Certainty





37

Capability Maturity Model
(CMM)


originally developed by the Software
Engineering Institute (SEI) at Carnegie
-
Mellon University


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


five levels with key process areas

38

1. Initial level


the process is not under statistical
measurement control at even the
operational level, and no systematic
process is possible


no key processes

39

2. Repeatable level



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



basic program management processes are
established

40

2. Repeatable level (cont.)


Requirements Management


SW Project Planning


SW Project Tracking and Oversight


SW Subcontract Management


SW Quality Assurance


SW Configuration Management


41


3. Defined level


the process has been understood and
specified so that operational quality control is
able to yield products with predictable costs
and performance schedules



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


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

42


3. Defined level (cont.)



Organizational Process Focus


Organization Process Definition


Training Programs


Integrated Software Management


Software Product Engineering


Intergroup Coordination


Peer Reviews


43

4. Managed maturity level


comprehensive process
-
related
measurements are possible and
improvements in product quality are possible
through the understanding and control


interactive process management processes
are well in place


Quantitative Process Management


Software Quality Management



44

5. Optimizing level


the highest possible level of maturity is
reached


the organization is able to make
continuous improvements in products,
services and processes


process management is highly proactive



there are also interactive and reactive
controls and measurements

45

5. Optimizing level (cont.)


Defect Prevention


Technology Change Management


Process Change Management

46


Key process areas


Each of the key process areas have a set of
SIX

common features associated with them.

1.
Goals

2.
Commitment to perform

3.
Ability to perform

4.
Activities performed

5.
Systematic measurement and analysis efforts

6.
Implementation verification



47

Process Maturity:
Conclusion


The majority of organizations in practice
today are at levels 1 and 2, with very
few at levels 3, 4, and 5



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