Strategic Management Midterm

STRATEGIC MANAGEMENT TOPIC 1: THE ORGANIZATION AS AN INSTRUMENT FOR BUSINESS
STRATEGY IMPLEMENTATION
1. DEFINITION AND PRELIMINARY CONCEPTS

ORGANIZATION
Definition Contains Works
A management structure that
A social unit of people that is Assigns roles, responsibilities and
determines relationships between
structured and managed to meet a authority to carry out different
the different activities with the
need or to pursue collective goals tasks
members and subdivides
They are open systems: they affect and are affected by their environment
Prof. Stephen Robbins – 1999: An organization is a social entity that consciously coordinated with more or less
identifiable limits, and that functions on a relatively continuous basis in order to achieve a common objective (or a
set of objectives)
a. A set of interrelated elements within the environment
b. Social construction made by people that employ various types of resources and capabilities
· An organization is composed by 4 elements: Structure→ Goals → Individuals → Collective

· Social construction implies: Hierarchy, Rules and Methods of managing all people involved in the process of
achieving the Corporate Goals
Digital Disruption Earthquake and VUCA paradigm: are generating a set of huge changes in the known paradigms
to date in the way which corporations are currently forced to meet their objectives
Other definitions:
Louis Allen: Organization is the process of identifying and grouping work to be performed, defining and delegating
responsibilities and authority, and establishing relationships for the purpose of enabling people to work most
effectively together in accomplishing objectives
 Is an instrument for achieving corporate/company goals
George Terry: Organizing is the establishing of effective authority relationships among selected work, persons and
places in order for the group to work together and efficiently
Prof. J.M. Veciana- 1999:

 Organization is the activity that provides a systematic and rational disposition of order and dependence
of parts with a view to achieve certain goals
 Organization is the result of this activity – the resulting state or institution- in this sense, an organization
is a social system structured to achieve certain ends
1.1. TWO TYPES OF CONCEPTS/ APPROACHES OF ORGANIZATION

How they use the term “organization”
STATIC CONCEPT DYNAMIC CONCEPT
· Used as a structure, an entity or a network of · Used as a process of an on-going activity, and it is to
specified relationship be considered a process of organizing work, and the
· Is a group of people bound together in a formal systems
relationship to achieve common objectives · It considers organization as an open adoptive
· It lays emphasis on current position – as such- and system and not as a closed system
not on individuals · Lays emphasis on individuals and considers
organization as a continuous process
Julian Assange: Every organization rests upon a mountain of secrets

1.2. THE STAR MODEL
Galbraith and Kazanjian- 1986: Identifies the basic variables or fields of an organization
With 4 critical cornerstones about the model
1. Describes the main variables or fields on which top executive & managers can act through their executive
(managerial role)
2. Provides a framework of operational action to interrelate
the Strategy of an organization with the main activities
that a company must undertake
3. The operational and functional interrelationships among
different variables, fields and/or activities configures a
typology or profile of corporate organization
4. Extremely useful model for the directors and managers of
a corporation
a. It allows them to focus on specific areas, activities
and functions related to the corporation’s
mission, vision and values
b. It allows them to deepen the maintenance and/or
strengthening of the corporation’s competitive
advantage
1.3. 7’S McKINSEY

Waterman Model - 1982
Divided into Priority Areas
3 Hard “S” 4 Soft “S” 4 major activity blocks
Strategy Structure Share Values Skills · Organizational design
Systems Style Staff · Human factor
Easier to be identified and defined Harder to be identified (- tangible) · Corporate culture
Can be influenced by management Are equally important · Management & support systems
4 critical considerations: to consider when analysing this model and when considering the effective
implementation of a strategy in an organisation
1. Complexity: there is a hybrid set of factors that influence the success of strategic process and/or strategic
change of a company
2. Interrelation: the seven factors are interconnected and it’s difficult to achieve significant results in one
factor without also improving the results of other factors
3. Shared importance: a well-designed strategy can fail due to the absence or lack of attention to any or to
several mentioned factors
4. Difficulty of identification: it’s not always an obvious question to know which of the 7 factors will be most
important or critical at any given time or company
4 major activity blocks

ORGANIZATIONAL MANAGEMENT &
HUMAN FACTOR CORPORATE CULTURE
DESIGN SUPPORT SYSTEM
To address problems Comprises the issues Set of values and beliefs of the Includes the planning and
related to the related to the HHRR company that can facilitate control systems as well as
definition of type and team that has to the implementation of a the information systems,
characteristics of implement the strategy strategy by achieving the which make it possible to
organizational Because Management & effort commitment of the translate the strategic
structure with the Leadership styles and the organization members, or on plan into operational
type of strategy it is to daily management of the contrary, become an plans, as well as to
support HHRR is a critical issue invisible barrier that delays, monitor and adjust its
prevents or blocks strategies fulfilment when
necessary
2. ORGANIZATIONS: DYNAMICS OF ORGANIZATIONAL ELEMENTS
Different conceptualizations of an organization
1. Open-social-Technical System
a. System: set of elements that are independent but interrelated, situated in an environment and
receive materials from it (Inputs) and produced results (Outputs)
b. Open: have interactions with their environment
c. Technical: set of relationships describing transformation of value based on technology
d. Social group: set of relationships based on the behaviour and communication of people
2. Outcome Model
a. Inputs: variables like personality, structure and organizational culture that lead to process
Group structure, roles and team responsibilities are
typically assigned immediately before of after a group
is formed
b. Processes: actions that individuals, groups and
organizations engage in as a result of inputs and that
lead to certain outcomes
c. Outcomes/Outputs: key variables that you want to
explain or predict, and that are affected by some other
variables
Levels - STAGES INPUTS PROCESSES OUTCOMES
Diversity Emotions, moods Attitudes and Stress
Personality Motivation/ Task performance
Individual level
Values perception Impact on behaviour
Decision making
Group structure Communication Group cohesion
Group level Group role Leadership Group Functioning
Team responsibilities Conflict & Negotiation
Structure HHRR management Productivity
Organizational level Culture Change management Gain knowledge
best practices
Key aspects to be considered when we approach the analysis of dynamics on Corporate Organizations
1. An organization can be considered as a social unit of people that is structured and managed to meet a
need or to pursue collective goals
2. All organizations have a management structure that determines relationships between the different
activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out
different tasks
3. Organizations are open systems they affect and are affected by their environment: organizations can
arise or disappear likewise as a result of more or less conscious and / or deliberate decisions
4. Organizations develop their own corporate culture: It could/should be established and recognized with
some clarity the main traits i.e. features of a particular organization
5. Once created, in principle, it lasts over an extended period of time necessary to achieve goals that cannot
be achieved individually and / or to achieve these goals more efficiently through collective and organized
action
Daniel Kahneman: We can be blind to the obvious, and we also blind to put blindness
2.1. TYPES OF ORGANIZATIONS
1. Organizations become object of study of certain scientific disciplines with different scope, objectives,
perspectives, assumptions and methodologies – Business Science, Sociology, Psychology, Political,…
2. Accordingly, and wide speaking
a. For profit: characterized by defining basic objectives around profit and creation of value of the
owners
b. Non-profit: goals related to the provisions of social services and /or contributions to public welfare
3. ORGANIZATIONS → LEVELS AND TIPOLOGIES OF ANALYSIS
3.1. LAYERS CRITERIA ANALYSIS
 Individual level: focuses on the individual that is part of an
organisation (beliefs and values, knowledge, attitude, skills,
motivation, etc).
 Group level: analyses the performance of groups within an
organization (formal and informal) and the relationships between
them (leadership, power, communication, conflict, cooperation,
etc).
 Organizational level: functioning of the organization as a whole
(organizational structure, informal organization, organizational
processes, organization culture, organizational culture and
development, etc)
 Supra-organizational level: describes the interorganizational
relations with external parties, social networks, organizational populations, etc) (ex: those using apple).
3.2. FORMAL VS INFORMAL, TECH & INDIVIDUAL

LEVELS Definition Characteristics
The coordination of activities · Coordination of activities
planned for members of the · Common goals
FORMAL organization to achieve a · Division of task
ORGANIZATION common goal through the · Formal hierarchy of Authority
division of labour and · System of incentives and Sanctions
hierarchy · Formal communication channels
· Deep analysis on how Informal groups get created
INFORMAL Informal set of relationships · Spontaneous coordination of people working together
ORGANIZATION that exists in an organization · Informal communication channels
· Informal authority (in the workplace) or leadership)
· Consideration 1: technology does clearly influence

Physical aspects of the
certain aspects of the organization
technology but also intangible
aspects that includes the
TECHNOLOGY ·Consideration 2: Technology impacts on Resources
content and the way it
ANALYSIS Planning, financial and operational sides as well
processes information and
perform tasks to produce the
·Consideration 3: Technology Level “State-of-the-Art” can
product or service
attract likewise Talent
1. Extrinsic: a person’s willingness to acts because of the
rewards she expects to receive from others in exchange
Focuses primarily on two
primary dimensions of an 2. Intrinsic: a person’s willingness to act because of the
INDIVIDUAL
individual when joining an satisfaction she expects to experience from behaving
ANALYSIS
organization: capacity and
motivation (3 types) 3. Contributive or Transcendent: a person’s willingness to
act because of the benefits she expects that others will
experience as a consequence of the behaviour
Management & Leadership Style does clearly impact on the designed Organization Structure, and as a consequence,
on the underlying Employees Motivation, as a Stable Environment does as well
4. MANAGEMENT FUNCTIONS
Managers, what are they expected to do?
There’s an extensive and very in-depth literature concerning the managerial functions of a “Manager” or
“Executive” of an organization/company
Generic synthesis of the main activities assigned to a manager will be presented below, but the following factors
must be considered
1. The Manager’s Leadership Style will substantively determine the focus, intensity and priority of his/her
duties
2. The contextual and specific situation of the organization/company will in turn logically influence the
functions that will be prioritized
3. Depending on the existing corporate culture and the capabilities of its trusted staff, the manager may
choose to delegate or minimize some of his function to concentrate on others
4. There’s consensus assuming that the priorities in the functions of the manager must increasingly be more
transversal and flexible in order to adapt quickly to changes
Managers: individuals who achieve goals through other people

FUNCTIONS Definition Example
A process that includes defining goals, The CEO of the German corporation (VW) must plan
establishing strategy, and developing in advance what will be the impact of the next
PLANNING
plans to coordinate activities generation of Robotics on the production of electric
vehicles in all of its factories
Determining what tasks are to be The management team of a company must organize
done, who is to do them, how the the structure of a new department in charge of
ORGANIZING tasks are to be grouped, who reports maximizing the performance of a group of
to whom, and where decisions are to influencers hired for their global adv campaigns for
be made their major customers
A function that includes motivating The new Global CEO of the Renault Nissan Group
employees, directing others, selecting must facilitate and transmit a shared vision of what
LEADING
the most effective communications this company intends to be for the next ten years
channels, and resolving conflicts
Monitoring activities to ensure they After some negative impacts of some practices, the
are being accomplished as planned management team must put into practice
CONTROLLING
and correcting any significant operational control mechanism with respect to the
deviations ecological production processes
What it takes to be a successful manager?
Perform managerial functions effectively Perform managerial roles effectively
Interpersonal Planning and strategic
Informational Organizing
Decisional Leading
Henry Mintzberg’s Managerial Roles Controlling
4.1. MANAGERIAL PROCESSES AND ORGANIZATIONAL PROCESSES MATRIX

Benjamin Franklin: For every minute spent organizing, an hour is earned
It helps providing/finding the answer to 9 critical key tasks/activities/ questions regarding

the functions that the management team must undertake within a corporate organization
Managerial processes Organizational

processes
Direction setting processes Work process
Negotiation & selling processes Behavioural processes
Monitoring & control processes Change processes
4.2. MANAGEMENT SKILLS
 Technical Skills: ability to apply specialized knowledge or expertise.
o The internal “Learning Curve” of the Organizations become critical
 Human Skills: ability to work with understand and motivate other people both individually and in groups
o Management must foster the training-needs at individual level through performance appraisals
 Conceptual Skills: mental ability to analyse and diagnose complex situations
o Individuals and groups effort must reinforce the capabilities to understand and to adapt to any
new requirements at each business fields
4.3. HENRY MINTZBERG’S MANAGERIAL ROLES

Henry Mintzberg - 1939: Double sided thinking (Left and right sided “Human brain”). A Canadian academic and
author on business and management
Planning with left side of our brain, Managing with the right side
We can divide the 3 roles into 10 profiles “IID”

Where a manager must provide at least 3 profiles at the same time
1. Interpersonal role : A manager must provide at the same time 3 profiles

a. Figurehead: symbolic head: perform a number of routine duties
b. Leader: responsibility of motivation and direction of employees
c. Laison: maintains a network of outside contacts
2. Informational role: Henry considers that these kinds of profiles are mandatory in every organization
a. Monitor: serves as a nerve centre of internal and external information of the organization
b. Disseminator: transmits information from outsiders or from other employees to members of
organization
c. Spoken-person: transmits information to outsiders on organization’s plans, policies, actions and
results
3. Decisional role: this one has been criticised a lot
a. Entrepreneur: search for opportunities and initiates projects to bring change
b. Disturbance handler (most important role): corrective action when organization face important
unexpected disturbance, kind of person who provides correction of potential mistakes in the
future
c. Resource allocator: makes or approves significant organizational differences
d. Negotiator: responsible for representing the organization at major negotiations
Assumptions
1. A manager can assume and adopt specific, diverse and changing roles within corporation
2. Decisive aspects such as his own management style, leadership style and/or personality determine
whether managers feel more comfortable adopting one role or another
3. Likewise: the role of a manager can also be influenced by the context and/or situation in which the
company finds itself basis of theory “Situational Leadership Theories”
5. ORGANIZATIONAL BEHAVIOR: how a company acts regarding the competitive level they has
Definitions
Focuses on how humans behave in organization, including how they interact with each other, as well as how they
work within the organizations’ structures to get their work done
Fred Luthans: Organizational behaviour is directly concerned with the understanding, prediction, and control of
human behaviour in organizations
Robbins: A field of study that investigates the impact that individuals, groups, and structure have on behaviour
within organizations, for the purpose of applying such knowledge toward improving an organization’s
effectiveness
OB is based on systematic study: looking at relationships, attempting to attribute causes and effects, and drawing
conclusions based on scientific evidence: OB provides an empirical Path to predict behaviours
5.1. CONTRIBUTING DISCIPLINES

CONTRIBUTING DISCIPLINES
I II
Psychology: measure, explains and change behaviour of humans · Internal corporate: learning process
Social Psychology: focus on people’s influence on one another · External corporate: learning from best
Sociology: studies people in relation to their social environment practices from third companies
and culture · Surveillance: continuously within the
Anthropology: study of societies to learn about human beings and organisation, the technology shift impact
their activities
LOCURA → MUSHUP AS IT WAS/TAKE ON ME “HARRY STYLES” & BLINDING LIGHTS
5.2. CHALLENGES AND OPPORTUNITIES

Deep Blue Ocean: you don’t have any competitor in the market because your product is considered unique
There are always challenges and opportunities that the company must select to concentrate the efforts
The deep blue ocean is so huge and so large, if you pretend to attract all this matters you will get lost
1. Responding to Economic Pressure
a. In economic tough times, effective management is an asset
b. In good times, understanding how to reward, satisfy, and retain employees is at a premium
c. In bad times, issues like stress, wise decision making, resilience appear as key i.e. important
Management Tasks
2. Responding to Globalization
a. Increased foreign assignments
b. Working with people from different cultures
c. Addressing the Risk-s of a “2Gears /2 Speed World"
d. Overseeing movement of jobs to countries with low-cost labor
3. Managing Workforce Diversity
a. Embracing Diversity as an Asset
b. Changing demographics
c. Implications for managers
d. Recognizing and responding to differences
e. Workforce diversity acknowledges a workforce of
women and men
f. Many racial and ethnic groups
g. Individuals with a variety of physical or
psychological abilities
h. People who differ in age and sexual orientation
4. Improving Customer Service
a. Today the majority of employees in developed countries work in service jobs
b. Employee attitudes and behaviour are associated with customer satisfaction
5. Improving People Skills
a. People skills are essential to managerial effectiveness
b. OB provides the concepts and theories that allow managers to predict employee behaviour in
given situations
6. Stimulating Innovation and Change
a. Successful organizations must foster innovation and master the art of change
b. Employees can be the impetus for innovation and change or a major Resistance Block
c. Managers must stimulate employees' creativity and tolerance for change
7. Challenging and coexisting with "Temporariness"
a. Organizations must be flexible and fast in order to survive
b. Managers and employees must learn to adapt to-/ with temporariness
c. Learning to live with flexibility, spontaneity, and unpredictability
d. OB provides help in understanding a work world of continual change, how to overcome
resistance to change, and how to create an organizational culture that thrives on change
8. Working in Networked Organizations
a. Networked organizations are becoming more pronounced
b. A manager's job is fundamentally different in networked organizations
c. Challenges of motivating and leading "online" require different techniques
9. Creating a Positive Work Environment
a. Organizations have realized creating a positive work environment can be a competitive
advantage
b. Positive organizational scholarship or behavior studies what is 'good' about organizations
c. "Best Practices Learning": sharing acquired knowledge : focuses on employees' strengths versus
their limitations as employees share situations in which they describe how performed at their
IRIR personal best
10. Helping Employees Balance Work-Life Conflicts
a. The creation of the global workforce means work no longer sleeps
b. Communication technology has provided a vehicle for working at any time or any place
c. Employees are working longer hours per week
d. The lifestyles of families have changed-creating conflict
e. Balancing work and life demands now surpasses job security as an employee priority
11. Improving Ethical Behavior
a. Ethical dilemmas are situations in which an individual is required to define right and wrong
conduct
b. Good ethical behavior is not so easily defined
c. Organizations are distributing codes of ethics to guide employees through ethical dilemmas
Managers need to create an ethically healthy climate
5.3. VUCA
A new managerial and worldwide paradigm
The changes in
The present is
the world are
difficult to
continuous and
describe, and
always on a large
the future
scale, affecting all
cannot be
areas at the same
determined
time
Many No situation can
interdependent be fully
factors are so understood, so
disordered that there is always
they lead to some lack of
chaos clarity.
5.4. UPCOMING, GROWING DISRUPTION

The Boston Consulting Group: Across almost all industries and regions, businesses face un precedented volatility,
most companies must transform with comprehensive changes in strategy, operating models, organization, people
and processes GAFAM
DIGITAL DISRUPTION: Across industries, digital is

fundamentally shifting how individuals interact,
what costumers expect and how work is done
New candidates to join the
digital kingdom: NATU (Netflix,
Airbnb, tesla, uber)
6. HUMAN BEHAVIOUR IN ORGANIZATIONS

Michael Crichton: All humans behaviour has a reason. All behaviour is solving a problem
What determines human behaviour?
6.1. PERSONALITY
Can be based and/or affected by:
 Internal Dimensions: Age, gender, sexual orientation, …
 External Dimensions: Work experience, income, habits, educational background, marital status,…
 Organizational Dimensions: Leadership role, group affiliation, status, functional level,…
3 key factors that define a person

1. Personality
 Is the way we characterize that person. We often use a series of assessments to assist in the
classification of a person’s personality
 Classification of personality
i. MBTI type indicator
ii. Type A: always going
Describes how people act
iii. Type B: laid back
iv. Big five dimensions/Traits/Factors indicator
2. Ability
 Physical ability: includes ability to perform physical activities (running)
 Intellectual ability: to perform mental activities (critical thinking and math)
3. Learning Skills
 Bodily-kinesthetic learning: happens through experience (By doing)
 Visual- spatial learning: when people remember what they have seen
 Verbal-linguistic learning: when people remember what they hear and say
 Logical-mathematical learning: when people reflect on concepts
6.2 MODEL INDICATORS FOR PERSONALITY
1ST THE MBTI TYPE INDICATOR
Most widely used personality assessment instrument in the world → 100 questions personality test that asks
people how they usually feel or act in situations
1. Extroverts and introverts: how people relate to others
2. Sensing or Intuitive
3. Thinking or Feeling
4. Perceiving or Judging
2ND BIG FIVE DIMENSIONS/TRAITS/FACTORS: five basic dimensions underline all other and encompass most of the
significant variation in human personality
Test scores: do a very good join of predicting how people behave in a variety of real-life situations
DIMENSION DEFINITION How does it affect at work?
Captures our comfort level with relationships. Higher job and life satisfaction
Extraversion Extraverts: gregarious, assertive and sociable Lower stress levels
Introverts: reserved, timid and quiet More adaptable to change
Individual’s propensity to defer others Higher performance
Highly agreeable people: cooperative, warm and Enhanced leadership
Agreeableness trusting Higher job and life satisfaction
Low agreeable people: cold, disagreeable and
antagonistic
Measures reliability Enhanced training
High conscientious person: responsible, organized, performance
Conscientiousness dependable and persistent Enhanced leadership
Low conscientious person: distracted, disorganized,
unreliable
Taps a person’s ability to withstand stress Higher performance
Positive emotional stability: tend to be calm, self- Lower levels of deviant
Emotional stability confident and secure behaviour
Negative emotional stability: nervous, anxious,
depressed and insecure
Addresses range of interest and fascination with Higher performance
novelty Enhanced leadership
Openness to Extremely open people: creative, curious, artistically Greater longevity
experience sensitive
Closed people: conventional and find comfort in the
familiar
7. PERCEPTION: the attribution theory

People behaviour is based on how they perceive reality, not on reality itself. If a manager does not understand
how an employee is acting, it may be because that person is perceiving the situation differently
Perception is influenced by three factors
 The perceiver
 The target
 The situation
Common mistakes that distort a person’s perception are:
 Projection: attributing a person’s own characteristics to another person
 Selective perception: interpreting things based on the perceiver’s interests and background
 Stereotype: judging people because they are part of a particular group
 Halo effect: perceiving someone positively based on one or two positive characteristics
 Contrast effect: regarding someone positively or negatively based on comparison to other
 Horn effect: perceiving someone poorly based on one or two negative characteristics
7.1. ATTRIBUTION THEORY:
▪ “Internal locus of control”: If a person’s behaviour is under his control
▪ “External locus of control”: If the behaviour is driven by outside factors
▪ “Self-serving bias”: If a person thinks that good things are always due to his internal causes but bad things
are external
8. VARIABLES
8.1 INDEPENDENT VARIABLES: the presumed cause of some change in a dependent variable
Independent variables:
1. Individual- level variables: specific behaviours, motivations, own personality..
2. Group-level: team spirit, communication levels, team cohesiveness
3. Organization system-level variables: corporate culture/structure,…
8.2. DEPENDENT VARIABLES: a response that is affected by an independent variable

▪ Productivity: a performance measure that include effectiveness and efficiency
▪ Effectiveness: ability of achievement of goals
▪ Efficiency: the ratio of effective output to the input required to achieve it
▪ Absenteeism: the failure to report to work
▪ Labour turnover: the voluntary and involuntary permanent withdrawal from an organization
▪ Job satisfaction: general attitude “Emotional wage” difference between real wage and with that you
believe you should receive
THE SUM OF BOTH VARIABLES =

Organisational citizenship behaviour (OCB)
 Discretionary behaviour that is not part of an employee’s formal job requirements, but that nevertheless
promotes the effective functioning of the organisation.
Withdrawal behaviour
 Withdrawal behaviour is the set of actions that employees take to separate
 themselves from the organisation.
Criteria and Key Factors in the Design of the Organization Structure
When designing the organizational structure, one must design 6 key questions: (exam)
The Key Questions The Answer is Provided by
Reservados todos los derechos. No se permite la explotación económica ni la transformación de esta obra. Queda permitida la impresión en su totalidad.
1. To what degree are activities subdivided into Work specialisation
separate jobs?
Chapter 2. Organisational Structure and 2. On what basis will jobs be grouped together? Departmentalization
Design 3. To whom do individuals and groups report? Chain of command
4. How many individuals can a manager efficiently Span of control

and effectively direct?
Organizational Structure Design: process of reshaping organization structure and roles
process. 5. Where does decision-making authority lie? Centralisation and decentralisation
A company that is not able to create new capabilities is dead. Organisation design must be 6. To what degree will there be rules and regulations Formalisation
understood as a tool, not as an end (this is why many companies fail). to direct employees and managers?
a) Needs Quality Time to be thought...developed...implemented...accepted.
There are some cases in which work specialisation becomes a nightmare. Example: Working in
b) Right people in right positions: right positions on right time a supermarket doing only one task.
c) Stability appraised as a must
d) The company cannot/should not incur in incongruences or contradictions Work specialisation: answers to the question about to what degree all relevant activities are
subdivided by different tasks.
Also, it can be defined as the alignment of:
• Structures By the late 1940s, most manufacturing jobs in industrialised countries involved work
• Process-es specialisation - The division of labour into separate activities; which kind of job any employee
• Rewards is entitled to do.
• Performance-metrics
 Repetition of work
• Talent with the strategy of the business
 Training for specialisation
Attention to all of these organizational elements is necessary to create new capabilities to  Increasing efficiency through invention
compete in a given and challenging market.
Economies and Diseconomies of Work Specialisation. Nowadays it’s well assumed the value of
Depending on some contingent factors –environment, technology, dimension and strategy-,
multitask/polyvalent employees.
some organizational attributes/layouts/variables –e.g. complexity, centralization and
formalization- are designed and set up into action i.e. operation.
Organisation Structure Design must be understood as a tool, not as an end in itself.
Organization Structure Design involves analysing:
✓ The formal structure

✓ Systems
✓ Processes that support the organization
Likewise, must provide answers to the following questions:
 How is the company organized? Mechanistic or organic (later on explained)

 Are there distinct business units or other separations? Regional, functional, by
product, by market.
 How distinct and/or rigid are the lines of authority?
 How standardized is the work? Rules, policies, procedures
 How is work measured, incentivised and rewarded?
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Departmentalization: grouping jobs together so common tasks can be coordinated. Can be Centralization and Decentralization
divided into different types follwing criteria like:
Centralization: refers to the degree to which decision-making is concentrated at a single point
• By functions performed in the organization.
• By type of product or service the organization procudes
Advantages of a decentralised organisation:
• By geography or territory
• By process differences
✓ Increase control and coordination between units: Can act more quickly to solve
• By type of customer problems
Chain of command: an unbroken line of authority that extends from the top of the ✓ Scale economies associated when taking certain types of decisions
organization to the lowest step / echelon / level and clarifies who report whom. ✓ Identification: more people provide inputs into decisions.
1. Key & basic cornerstone in organization design. ✓ Employees are less likely to feel alienated from those who make decisions that
affect their work lives.
2. Two complementary concepts:
Disadvantages of a decentralised organisation:
a. Authority (Authority: power on a daily basis gained every day
(≠Power: given by a legal agreement) ❖ Poor quality decisions or lack of consistency and / or coordination with other
locations, centres, departments, etc.
b. Acceptance, consistency
❖ Potential Managers Conflicts in terms of deciding on their own and at individual
Following some authors, i,e. The chain of command is less relevant today because of criteria basis
technology and the trend of empowering people.
❖ Potential Demotivation of employees in terms of not acting as an “Unity”
a. Operating employees make decisions once reserved for management.
❖ Delay of Strategic Decisions, Investments, Organisational Changes since there’s a
b. Increased popularity of self-managed and cross-functional teams. clear difficulty to come to General Accepted Consensus.
Many organization still find that enforcing the chain of command is productive.
Decentralization: decision-making is made by mid-level or lower-level managers, rather

Contrasting Spans of control: how many employees do you have under your control. Related than being made centrally by the head of the company.
to BSC Balance Score Cards.
Advantages
✓ Can act more quickly to solve problems
✓ Identification: more people provide input into decisions
✓ Employees are less likely to feel alienated from those who make decisions that
affect their work lives.
Disadvantages
o Coordination problems
o Uniform policies not followed
o Requires qualified personnel
o Conflicts among managers when meeting their profit plans
Span of control are daily use.
The more layers existing, the more difficult to subscribe. Centralised companies: Deloitte.
Decentralised: Mercadona, Nike (they adapt to geographic areas).
Nike is a decentralised company but in terms of HRM they are centralised.
CEO and board of directors are able to foster the strategic message of the company.
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The Mechanistic versus the Organic Model
Formalization: the degree to which jobs within the organization are standardized.
Formalization has revealed the kind of professionalism the company is expecting of the
company. Process of creating a formalized structure and the maintenance of it.
◊ A highly formalised job implies a minimum amount of discretion.

◊ The greater the standardization, the less input the employee gives opinion into
how the job is done.
Advantages
✓ Reduces variability of employee behaviour
✓ Encourages coordination between people
Disadvantages
o Only contributes to the succes o the organistion if it matches the expections of
the members as well
o Could -eventually- decrease the degree of creativity and spontaneity in some
companies where these factors are really important.
Low formalization: job behaviours are relatively non-programmed, and employees
have a great deal of freedom to exercise discretion in their work.
Dimensions and Organizational Variables: The Mechanistic vs Organic Organisation

structure = f(degree of complexity, formalization and centralization of the org) Complexity:
the degree of horizontal and vertical differentiation within the organization.
Mechanistic Model
Individual specialisation in a mechanistic structure a person in a role specialises in a
specific task or set of tasks.
Organic Model
Joint specialization in an organic structure, a person in a role is assigned to a specific task
or set of tasks.
However, the person is able to learn new tasks and develop new skills and capabilities.
Fosters the cross-functional teams. There is a hybrid mix between the people involved.
“There is not a single way to organize but depends on the context”
It’s important to keep the fit.
The Environment and Organisational Structure
Factors and Inputs impacting on the organizational structure

“There is not a single way to organize… but depends on the context.” Differentiation and Integration of Activities
Variables that could affect the design of the organization structure:
▫The environment
▫ Technology
▫ Size of the organization
▫ The business strategy
▫ The distribution of power: at internal level organisation
Organizational design (formal) includes two complementary and simultaneous processes:
The organizational dimensions (nº of employees) is directly and positively related to: 1. The differentiation of activities
• The number of hierarchical levels Refers to the breakdown i.e. split within the organization in groups of specific activities that
• The degree of specialization are homogeneous to each other, likewise at two levels:
• The degree of formalization 1.1. Horizontal Differentiation: specialization, division of labor, depart.
• The degree of decentralisation 1.2. Vertical Differentiation: hierarchy of authority, number of hierarchical levels
2. The integration
There are companies that decide not growing anymore; they limit their growth capabilities to Aims to coordinate the efforts of the different parties in order to guarantee the fulfillment of
keep the prestige, the philosophy, etc. Example: Ferrrari, Swatch. the general objectives of the organization through:
2.1. Interdependence of tasks

2.2. Coordination mechanisms
Horizontal differentiation: is usually determined by specialisation in several functions i.e.

tasks, assignments.
Specialisation
 It appear as a direct consequence of the division of labor
 It intends to concentrate types of functions or tasks based on specialized knowledge
that requires its execution
 Horizontal differentiation is reflected in Departmentalization The process of
Departmentalization
Dilemma/Debate: Growth, Performance, “Keeping the Essence”, Surveillance of the Original
Mission and Vision
Informal Coordination Mechanisms
 Mutual adaptation or direct contact (informal communication), without resorting to

the formal hierarchy of authority.
 Organizational & Corporate Culture; acts as an implicit coordination mechanism by
normalizing behaviors.
Types of Organisational Structures. Line and Staff within an Organisation’s
Has -as its ultimate goal-the creation or differentiation of the basic organizational units of the Diagram Chart
company.
• By process: based on the homogeneous characteristics of the activities that are carried 2 types of authority:
out (internal orientation, production)
Main criteria: functions, processes, knowledge / skills • Line authority: the right to determine what to do
• By purpose: based on the homogeneity of the objectives or results of the activities
(external and market orientation) • Staff authority: may only give the person the right to determine how to do it
Main criteria: products, customers, markets or geographical areas, businesses.
Vertical differentiation: implies a division of labor by applying the principle of hierarchy.

 The repeated application of the process of vertical differentiation results in the
hierarchical line—continuous line off or mal authority that flows vertically descending
in an organization)—and that provides and reflects the formal structure of authority.
 Vertical differentiation affects the number of vertical/hierarchical levels or steps/links

of the Chain of Command—higher or more flat structures—
 It’s well asssumed, the more hierarchical levels within an organisation, less agile and
quick to answer to the changing market needs and its customers: that’s the underlying
reason in order to favour the “Flat Organizations”.
Integration of Activities: Interdependence & Coordination Basic Organizational Forms; Simple, Functional, Divisional, Matrix and New Forms/Organizational
Coordination mechanism: Interrelation of factors within the organisation. configurations (Clover, Network or virtual, federal)
1. Integration process is directly ruled by the degree of interdependence between

tasks/people and organizational units.
The Simple Structure
2. Interdependence of tasks describes the degree to which each task requires a specific
collective action.
3. Different degrees of interdependence of tasks require different coordination mechanisms.
4. Formal Structural Coordination Mechanisms
− Direct supervision –hierarchy
− Link function -people that make a link between units
− Inter-unit groups –committees
− “Integrating-Integrator Department” -coordinating role
Normalization consists in the introduction of norms, rules or patterns of behavior that must be The simple structure is most widely practiced in small businesses in which the manager and
followed by members of the organization. the owner are one and the same.
 Normalization of work processes -through formalization of behavior-
 Standardization of skills and knowledge --through "training“-Normalization of --
forecasted / expected--Results (through
 Normalization of forecasted / expected results (through planning and control)
The Divisional Structure i.e. Divisional Organisation
Strengths Weaknesses
✓ Simple, fast and flexible o Difficult to maintain in anything

other than small organisations
✓ Inexpensive to maintain
o Risky: everything depends on one
✓ Accountability is clear
person
The Functional Structure i.e. Functional Organisation
Kind of structure in which the company is divided into SBU. Every kind of division has different
departments. This increases efficiency the results of the company. Each department has its
challenges and needs.
One of the most important advantages is that you can increase the efficiency of the company
and require the flexibility, because the needs are different for each division.
Strengths
✓ Ability to perform standardized activities in a highly efficient manner.

✓ Effective Control of Performance of each Dept
Weaknesses
o Subunits conflicts could arise in terms of some Management Priorities i.e.

o Trends i.e. Preferences.
o Department goals dominate above the goals and objectives of the other Departments
o Could lead in some cases to bureaucracy and some level of isolation with regard to
other departments.
o Does not foster Innovation processes as a whole, since each Unit i.e. Deptis focused on
their own goals.
One of the problems is that there are some internal contradictions.
▫ Often used in multinational corporations aimed to launch/develop
globally/simultaneously a new product or service, taking benefit from:
a) The experience in the very different markets
b) The local expertise and knowledge from some experts within the organization
During the last 50 years the reality has turn into a new structure, the matrix structure. It is a
hybrid structure between the functional and the divisional.
Under the matrix structure, every single manager has two bosses, the manager and the
general manager. It is not easy at all to have both bosses at the same time, because maybe the
manager of project B will set up some duties and at the same time you have to obey some
commitments of the general manager.
The Matrix Organisational Structure

The matrix structure combines two forms of organizations –functional and Divsional by
Product/Service:
The strength is putting specialists together.
Product/Service Structure facilitates knowledge sharing: effective Team coordination becomes

key in order to implement this structure.
▫ It provides clear responsibility for all activities related to a product or service, but it
could incur into potential duplication of activities and costs.
▫ It requires likewise High Level of Commitment/involvement from the highest position

in the Chain of Command in order to set up “Priority Goals Deadlines” in order to avoid
the “Never-Ending Ongoing Projects”.
New Organizational & Virtual Structures Shamrock structure, on the first level, you will concentrate on the necessary core employees,
Nowadays, in the Corporate Arenna, important daily factors like Flexibility, Simplicity, on leaf 2 you will outsource those activities that apparently that do not became mandatory on
daily bases, on leaf 3 you need assuring temporary workers.
Integration and Knowledge management are fostering new Organizational designs provided
with Variable Geometry and or Flexible bureaucracy: we´re witnessing that the Organizational It’s the purer capital one in terms of pure capitalism.
Structures are transforming themselves.
This has been very criticised, because In leaf 3 you increase temporariness.
A very limited and reduced High Management Group: it acts as core of operations and as a
reduced as possible (1st leaf).
Outsourcing all activities that are more efficient to do outside the company (2nd leaf)
Flexible workforce since it is not necessary to integrate everyone within the operating kernel
with the same operating rules (3rd leaf).
▪ Different abilities and attitudes suggest and advise to separate some key functions
among them –Research&Development, Sales&Commercial...
▪ The model embraces carrying out technological innovations so that the end customer
perceives agile, comfortable and effective services levels such as IT Cloud Services,
online banking, etc... (potential 4th leaf).
▪ Key to this model is the coordination’s mechanism among leaves: therefore it becomes
Shamrock Model key the implementation of “Standardization of Procedures”.
▪ Suitable model for large service companies and in industrial sectors with high
technological change processes.
▪ Contingent factors: sophisticated technical systems, dynamic and agile environments,
large size organizations, external and internal power to negotiate agreements and
conditions.
Federal Model/Virtual
Federal Model (N-Form)
▪ It is the evolution of divisional or multidivisional structures

▪ There is a decision unit or its center every time smaller
▪ Adequate structure for large international and diversified companies or with strategic
agreements
▪ Diversity of federal organizational units each with their identity and objectives but
sharing the same mission and culture
▪ Federal units have “power” since the headquarters has delegated it and it only
performs support, counseling and coordination functions (mission and culture sharing)
Network / Virtual Model
▪ It is the evolution of the previous models; Shamrock and Federal

▪ It is the maximum segregation of the company in activites carried out by other
companies linked to the “parent company” (small central core)
▪ Bordering organizational borders: it does not represent a tructure too defined since it
is based very much on alliances and outsourcing of activities (constractual relationships
with third parties)
Models of analysis, diagnosis and adaptation of organizations
Whatever the decision is made, whatever the KPI, the rest of the markets and publics do
recognize you or not.
Jones’s Organisational and Competitive Model
He jumped out with the conclusion that the differentiation strategy needs a complex structure,
etc.
The product team structure is the one most used for increased efficiency.
Summary Review: Strengths and Weaknesses
Find out which is the kind of pure structure that fits more to the organisation in terms of
strategic fit.
Mintzberg’s Organisational Configuration Model You need knowing who is going to be the strategic apex.
At the same time, you need to determine who is going to be the support staff.
The Mintzberg’s 7 Structural Organisations Model
McKinsey’s 3 Organizing Model
Forget for a while the colour of the drawings of your structures. The important thing is that
you have 5 clear ideas.
6) Participatory Decision Making in decentralized structures is positively related to
increasing satisfaction and performance: on the contrary, a high formalization
tends to reduce creativity and innovation.
7) Consider dynamism and complexity of the environment and balance the organic
and mechanistic elements when designing an organisational structure.
8) National culture influences the preference for structure.
❖ Specialization usually favours performance since can make operations more
Implications of Different Organizational Designs
efficient. Once having said that, an excessive specializationl level could reduce
however in the mid-term the labor satisfaction since motivation could likewise be
reduced: (the employees also look for jobs with intrinstic remuneration).
❖ Participatory Decision Making in decentralized structures is positively related to
increasing satisfaction and performance: on the contrary, a high formalization
tends to reduce creativity and innovation.
❖ Avoid designing rigid hierarchies that overly limit employee’s creativity,
empowerment and autonomy.
❖ Balance the advantages of virtual and boundaryless organizations against the
potential pitfalls before adding flexible workplace options.
❖ Consider dynamism and complexity of the environment, and balance the organic
and mechanistic elements when designing an organizational structure.
Implications of Different Organisational Designs

There are other factors that count in the prestige of the company.
Organizational Structure Design must help achieving the Core Objectives of the Corporation itself,
among others, increasing Shareholders Value.
There are three types of organisational structure
- Acceptance
- Rejection
Organizational Designs and Employee Behavior: an organization’s structure can have significant
effects on its members. - Resignation: is like a self-shoot in your feet. Means that the company hasn’t enjoyed of
No way & impossible to establish generic rules or Major Conclusions: illusion anymore.
1) Not everyone prefers the freedom and flexibility of organic structures. You cannot expect from one day to another that suddenly, in a word rank company, most of
2) Some people are most productive and satisfied when tasks are standardized, the the employees will buy the acceptance of the rules. But little by little, most of them will accept
instructions are clearly set-up in advance ambiguity minimized. your authority and power, so results will appear.
3) Broadly speaking, “Work specialization” contributes to higher employee
productivity. You will need some factors to make you achieve your goals, and we have to distinguish
4) No evidence supports a relationship span of control and employee satisfaction or
between tomorrow and today. We make our goals happen today, but we focus on the
performance.
5) Fairly strong evidence links centralization and job satisfaction: meaning that less tomorrow.
centralization is associated with higher satisfaction.
STRATEGIC MANAGEMENT II TOPIC 3: MOTIVATION AND HUMAN BEHAVIOUR
1. CONCEPT DEFINITION
Motivation I
Definition:
The processes that account for an individual’s intensity, direction and persistence of effort toward attaining a goal
Key elements: effort and need to be achieved
Subjective approach within an organization:
 Everyone appraises on a different way each level of both effort/needs
 The organization, as a unit, must “deliver” the results: the managers must align the sum of all efforts and
needs of all persons involved (employees)
Motivation II
Internal and external factors that stimulate desire and energy in people to be continually interested and
committed to a job, role or subject, or to try to attain a goal
Key elements: motivation results from the interaction of both conscious and unconscious factors such as:
1. The intensity of desire or need
These are the reasons anyone
2. The incentive or reward value of the goal
has for behaving a certain way
3. The expectations of the individual and of his or her peers
2. PROCESS DESCRIPTION -AS A PROCESS RELATED TO THE NEEDS-

The circle takes place through conscious or unconscious mechanisms
The choice of behaviour is generically determined by the speed in meeting the
need
A learning process takes place likewise; inherent to how effectively these needs
are met
It is a normal process when talking about motivation, following new serves

there are new individuals that don’t great processes because they don’t feel
motivated
EXPECTANCY THEORY → M= E · I · V
3. MARS MODEL OF INDIVIDUAL BEHAVIOUR AND PERFORMANCE
Why do individuals behave the way they do and perform well or poorly
in the workplace?
The MARS MODEL it to be understood as a powerful methodology and
useful starting point to understanding the underlying drivers of
individual behaviour and results
MARS MODEL seeks to elaborate individual behaviour as a result of
internal and external factors or influences combined together
Highlights 4 factors that directly influence an employee’s voluntary behaviour and resulting performance:
Name Example of a person will not perform his job at 100% if not is/have/do
M MOTIVATION Enthusiastic and real-willing salespeople
A ABILITY Have knowledge and sales skills
R ROLE PERCEPTIONS Understand their job duties
S SITUATIONAL FACTORS Enjoy of proper and sufficient resources
*We have to consider that everybody has its own subjective point of view
4. DRIVERS OF INDIVIDUAL BEHAVIOUR

4.1. MOTIVATION
The internal forces that affect the direction, intensity and persistence of a person’s voluntary choice behaviour
1. Directions: refers to the fact that motivation is goal oriented, not random- it can be positive or negative
2. Intensity: amount of effort allocated to the goal
3. Persistence: it involves various levels, continuing effort for a certain amount of time
4.2. ABILITY
Natural aptitudes and learned capabilities required to successfully complete a task
 Are natural talents
 Learned capabilities: skills and knowledge that you have actually acquired
o Following some theories: ability gets increased when an underlying motivation is around. At the
same time, motivation gets higher levels when person increases his abilities to overperform an
assigned task
4.3. ROLE PERCEPTION
A person’s beliefs about what behaviours are appropriate or necessary in a particular situation, including the
specific task that make up the job, their relative importance and the preferred behaviours to accomplish those
tasks
 Inaccurate role perceptions cause employees to practice effort towards potential wrong goals
 Ambiguous role perceptions lead to lower effort
 More accurate role perceptions are develop when
o The required tasks are described clearly
o Employees are trained in the most appropriate way to accomplish those tasks
o They receive frequent & meaningful performance feedback. What is my job? – Which are my goals?
4.4. SITUATIONAL FACTORS
Include conditions beyond employee’s immediate control that constrain or facilitate hir or her behaviour and
performance
 Time restrictions or pressures vs enough time to develop
 Surrounding people profiles
 Budget
 Physical work facilitates or conditions
 Changing consumer preferences, employees can think that their product/ service is less important
 Economic conditions and related rewards
5. ADDENDUM MARS MODEL
Competencies: the abilities, individual values, personality traits and
other characteristics of people that lead to superior performance
External environment is changing so rapidly that many organizations
prefer to hire people for their generic competencies rather than their
job- specific skills – strong customer orientation, social skills,
willingness to learn,…
When an organization relies on broad competencies or on job-specific skills, there are basically 3 ways to match
individuals with job requirements
1. Select applicants whose existing competencies best fit the required tasks
2. Provide training so employees develop required skills and knowledge
3. Redesign the job so employees are only given tasks within their capabilities
Along tome, sooner or later, an organization ends

up looking very much like the people who form it
6. MOTIVATION TYPES
6.1. MODEL A
1. INTRINSIC MOTIVATION
· A personal drive that comes from inside the
performer
· It makes de performer want to achieve the
highest level of his performance through his
behaviour
It comes from inside from yourself
2. EXTRINSIC MOTIVATION
· It comes from the outside – materialistic or
not
· There’s a reward that encourages the
performer to improve his performance
6.2. MODEL B: PAIFCCA

Understanding these motivations can help managers design effective incentive systems, provide meaningful
feedback, and create supportive work environment that fosters employee engagement and performance
1. Power motivation: you are looking for control, recognition, authority
2. Attitude motivation: driven by beliefs, values & perceptions → positive attitudes can lead to intrinsic mot
3. Incentives motivation: you expect a reward
4. Fear motivation: to avoid negative consequences, risks, penalties, punishments, loss of status or resources
5. Competence motivation: you believe in your ability to perform a task efficiently
6. Affiliation motivation: need for social connections, relationships, involves seeking approval & acceptance
7. Achievement motivation: desire for success, personal excellence, recognition
7. MOTIVATION THEORIES
THEORIES
ST
1 APPROACH: BY ERA 2nd APPROACH: BY TYPOLOGY
Contemporary theories Content theories
1. Alderfer’s- ERG Needs Theory 1. Maslow’s hierarchy of needs
2. McClelland’s- Learned Needs 2. Alderfer’s - ERG Theory: Existence needs, relatedness needs
3. Edward Deci & Richard Ryan- Self Determination Theory and growth needs
4. Vroom’s- Expectancy Theory 3. McClelland’s - Theory of Needs: need for achievement,
5. Adam’s- Equity Theory affiliation and power
6. Locke & Latham- Goal Setting Theory 4. Herzenberg’s- Two Factors Theory
7. B.F.Skinner - Reinforcement Theory
8. Hackman & Oldham - Job Characteristics Theory
Classical theories Process theories
1. Hierarchy of Maslow’s Needs 1. Vroom’s- Expectancy Theory
2. McGregor’s - X&Y Theory 2. Adam’s- Equity Theory
3. Herzberg’s Motivation -Hygiene Two Factors Theory 3. Locke & Latham- Goal Setting Theory
4. B.F.Skinner - Reinforcement Theory
7.1. NEED’S THEORY BY ABRAHAM MASLOW (1908-1970)
A psychologist who studied positive human qualities and the lives of
exemplary people.
His book (1954): Motivation and Personality.
Maslow’s need theory has received wide recognition, and has provided
sound arguments & Thought basis to deepen into the study of the
motivation of employees in companies
It still generates a high degree of controversy, although
it largely explains human behaviour at different levels of achievement of
the individual’s goals.
Research does not generally validate the theory. Some researchers have attempted to rebuild components of the
Needs Hierarchy Concept, using principles from evolutionary psychology
❖ Physiological Needs: Basic requirements for human survival (food, water, shelter, and sleep) Without
fulfilling these needs, the body cannot function properly.
❖ Safety Needs: It complements physiological needs. Includes physical safety, financial security, health,
employment, and protection from harm.
❖ Belongingness and Love Needs: Humans have a need for social connection and acceptance. Involves
feeling a sense of belonging and being loved by others, (in large social groups or intimate relationships)
Lack of fulfilment in this area can lead to loneliness and depression.
❖ Esteem Needs: involve gaining recognition and feeling valued by others, develop self-esteem and
confidence. Includes; external factors (respect & status) and internal factors (mastery & self-confidence.)
❖ Self-Actualization: Represents the personal growth and development. Involves pursuing creativity,
problem-solving, morality, and spontaneity to become the best version of oneself.
Theory X and Theory Y – Douglas McGregor (1960)
2 styles of management: authoritarian (Theory X) and participative (Theory Y).
Theory X assumptions are basically negative:
1. Employees inherently dislike work and, whenever possible, will attempt to avoid it.
2. They must be coerced, controlled, or threatened with punishment.
ERG Theory by Clayton Alderfer If you believe that your team members dislike their work and have little motivation, then,
you'll likely use an authoritarian style of management.
Theory Y assumptions are basically positive:
1. Employees can view work as being as natural as could be resting or

playing/experiencing any pleasant activity
If you believe that your people take pride in their work and see it as a challenge, then you'll
more likely adopt a participative management style.
Clayton P. Alderfer's ERG theory from 1969 condenses Maslow's five human needs into 3
categories: There are some organisation that needs a tight control of that.
• Existence Needs: Include all material and physiological desires (e.g., food, water, air, In an advertising company, we will apply the theory y because you need to foster creativity
clothing, safety, physical love and affection). Maslow's first two levels.
new ideas.
• Relatedness Needs: Encompass social and external esteem; relationships with
significant others like family, friends, co-workers and employers . This also means to be
recognized and feel secure as part of a group or family. Maslow's third and fourth
levels. McGregor’s Theory has been often confronted in terms of either fostering rigid and
• Growth Needs: Internal esteem and self-actualization; these impel a person to make disciplined corporations i.e. organisations or on the contrary, creativity & flexibility
creative or productive effects on himself and the environment (e.g., to progress organisations:
toward one's ideal self). Maslow's fourth and fifth levels. This includes desires to be
creative and productive, and to complete meaningful tasks. 1. McGregor believed that “Theory Y” were more valid than “Theory X”.
2. No evidence to confirm that either of is valid.
It is a very controversial model. In some companies do really work.
In some context it is a necessary theory to apply.
The main summary is talking about basically negative and basically positive inputs. There is a
power and authority and following some explanations he summarizes that through the X
theory the managements must awake the efforts.
Broadly speaking what a human need is experiencing is that he is himself growing. When the
primary existence needs are satisfied, they go to the relatedness needs. Every time we go
through the leader we experience satisfaction and progression.
When we are running out the ladder, we experience frustration and regression.
Everyone has to have his primary needs to be fulfilled.
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He said that in the midterm when a motivator factor is repeated it will become at the end a
hygiene factor and there is no specific reward about that.
In the real world you can’t divide multiple elements in those two factors.
Proposes that employees are primarily motivated by growth and esteem needs such as
recognition, responsibility, advancement, achievement, and personal growth.
Following Herzberg, the repetition of a motivating factor usually ends up turning it into a
hygienic factor: a factor that does not cause satisfaction but that is necessary to not cause
dissatisfaction.
At point it is possible for the employee to see the daily or yearly rewards more as a right than
as a reward.
That is, what perhaps one day started as a strategy to motivate, retain and satisfy employees
We are contradictory people, we appraise the green one, because we think it is more flexible, to overdeliver, can become “medium term” in a mandatory strategy to avoid dissatisfaction
but some experts think that must of the human beings appreciate those companies that show to the same employees.
to be very controlled. It is a contradiction.
1. Criticism of Theory: Limited because it relies on self-reports

2. The reliability of methodology is questioned
Two-Factor Theory – Frederick Herzberg 3. No overall measure of satisfaction was utilized
“True motivation comes from achievement, personal, development, job satisfaction and 4. Herzberg assumed a relationship between satisfaction and productivity, but the
recognition.” research methodology he used looked only at satisfaction, not at productivity.
Herzberg created a universe about motivation theories really to understand. He divided into
hygiene and motivator factors. Nowadays things are much more difficult. Research hasn’t proved 90% of his findings. His
theory was in 1959 based in general motors, larger companies that were very mechanistic. 40
years later the world has changed a lot.
Herzberg was the underlined motivator for David McClelland. He made the book: the achieving
society
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If I am the manager and I know that someone has a power, we will not put that person in some
specific works. If he is so ambitious, he maybe can’t work with some type of people. Maybe an
affiliation person is a good option for maybe public relations.
It is not so easy to divide people in those three types.
Theory of Learned Needs – David McClelland (1917-1998)
Plenty of the Models developed so far looked at the individual’s primary and instinctive needs
and their relative importance in life: however, people also have secondary needs or drives that
are learned and reinforced through childhood learning, parental styles, education, first
experiences, social norms...
McClelland identified 3 secondary needs and considered them as 3 key and important sources
of motivations that he believed we all have:
1) Need for achievement

2) Need for affiliation
3) Need for power
McClelland says that, regardless of our gender, culture, or age, we all have three motivating
drivers and one of these will be our dominant motivating driver. This dominant motivator is
largely dependent on our culture, history and life experience.
People will have different characteristics depending on their dominant motivator, but along 1) Need for achievement: a learned need that causes people to want to accomplish reasonably
the time and based on our personal history, experience and background, we will extract challenging goals through their own efforts.
several “Learned needs” that can motivate –or not- acting in some direction.
People with high nAch:
1. Tend to choose tasks with a moderate dergree of risk (50-50)

2. Tend to establish challenging goals for themselves and thrive on competition
3. Have a strong need for unambiguous feedback and recognition for their success
4. Money is relatively a weak motivator for them, except to the extent that it provides
feedback and recognition.
5. Successful entrepreneurs ten d to have high nAch.
There are some additional traits. People who shows a higher score in nACH must be on the top
He said to not bother anyone about motivation. Believed that people were split into three and are insecure people.
different types of needs. He built a theory with some texts that he was providing, he said that
there are some features that are prevalent and dominant in all those people. 2) Need for affiliation: a desire to seek approval from others, fulfil their wishes and
expectations, and avoid conflict and confrontation.
People with high nAff:
1. Tend to be more effective than those with a low nAff in coordinating roles
2. More effective in sales positions, cultivating long-term relationships
3. Prefer working with others rather than alone
4. People in decision-making positions must have a relatively low nAff so that their
choices and actions are not biased by a personal need for approval.
The second level is the need for affiliation, it is self-explanatory. It is someone that is looking
for the agreements. Those people that need affiliation are the best ones acting like
negotiators.

3) Need for power: a desire to control one’s environment, including people and material SDT supports 3 basic psychological needs that must be satisfied to foster well-being and
resources. health, optimal function and growth: These needs are seen as universal necessities that are
innate, not learned –instinctive--, and seen in humanity across time, gender and culture.
People with high nPow:
► Even though these needs can be universally applied, however some may be clearer
1. Rely on persuasive communication
than others at certain times and are expressed differently based on time, culture, or
2. Make more suggestions in meetings
experience.
3. Publicly evaluate situations more frequently
4. Corporate and political leaders have a high nPow because this motivates them to • Competence: Seek to control the outcome and experience mastery
influence others. • Relatedness: the universal wish to interact, be connected to, and experience caring for
others
When we are looking for power, we experience the need and desire of controlling everybody
• Autonomy: the universal urge to be causal agents of one's own life and act in harmony
and the details. They feel some fears from dependent and subordinated people, in some cases
with one's integrated self; however, Deci and Vansteenkiste note this does not mean
they don’t trust them anyone and turn into paranoid people.
to be independent of others.
Deci and Ryan claim that there are three essential elements / outcomes of their theory:
There could be also a mix between two categories. The important thing is that the theory is
1. Humans are inherently proactive with their potential and mastering their inner forces -
highly restrictive.
such as drives and emotions.
Maybe there is a hybrid model of that. Even though there is a dominant one for your 2. Humans have an inherent tendency toward growth development and integrated
personality. functioning
3. Optimal development and actions are inherent in humans, but they don't happen
Socialized power: mean to help others, such as improving society or increasing organizational
automatically
effectiveness.
To actualise their inherent potential, they need nurturing from the social environment: if this
happens there are positive consequences -e.g. well-being and growth- but if not, there are
McClelland’s theory has had the best research support: negative consequences.
1. Because McClelland argued that the 3 needs are subjective; we may rank high on them So SDT emphasises humans' natural growth toward positive motivation; however, this is
but not know it- the process of effectively measuring them is not easy. endangered if their basic needs are not fulfilled.
2. The process is time consuming and expensive: on a daily operations basis, few
Research on self-determination theory has focused on cognitive evaluation theory: proposes
organizations have been willing to invest in measuring McClelland’s concept.
that in addition to being driven by a need for autonomy, people seek ways to achieve
3. For some authors it is an excessively restrictive and rigid theory: it does not envisage
competence and positive connections to others.
the option/need of a manager assuming different roles depending on the
organizational context.
They are the first ones who describe the importance of self-autonomy. There are some people
Self-determination theory: E. Deci & R. Ryan (1985) who criticise its point of view. They put emphasis on self-determination theory. Some people
Developed by researches Edward L.Deci and Richard M.Ryan. This theory concerns with human criticise this point of view. They embrace the importance of thinking, acting and feeling. Those
motivation, personality and optimal functioning. people where prevalent in the think aspect, they will look for competence aspects. These ones
Rather than just the amount of motivation, self-determination theory focuses on different appraising for autonomy split are much closer to the underlying part of their call motivation.
types of motivation: human motivation, personality and optimal functioning. The last ones are those whose strengths or pivotal mood goes into the feeling or emotional
SDT claims that people have 3 innate psychological needs that are considered as universal aspects; those ones strive for relativeness aspects. The problem regarding this theory is the
necessities. SDT also asserts that there are different approaches to motivation and next chapter. Do you think that in this point of life you can build upon your self-determination?
differentiates between different types of motivation. Proposes that people prefer to feel they
have control over their actions.
There are mix factors that in some extend the self-determination theory has a big much more
Main outcome: in addition to being driven by a need for autonomy, people seek ways to free style or capitalistic approach
achieve competence and positive connections to others.
2. Performance-to-Reward (P → R) expectancy
An individual’s perceived probability that a specific behavior or performance level will lead to
specific outcome.
• Developed from previous learning

• Important to be specific which outcomes do we think about
• We only think of outcomes that are of interest to us at the time
3. Goals –qualitative & quantitative themselves (G)
the anticipated satisfaction or dissatisfaction that an individual feels toward an outcome.
• Ranges from negative to positive – the actual range doesn’t matter
At the end, the important thing is to understand two aspects (exam):
- Your own expectancies

- Which are the expectations of the group
Expectancy Theory – Victor Vroom And as a manager you must align them and strive for a commitive spirit that is consistent with
Expectancy theory argues that he tendency to act in a certain way depends on those.
a) an expectation that the act will be followed by

b) a given outcome and
c) the attractiveness of that outcome to the person The key to Expectancy Theory is:
An employee will be motivated to execute a high level of effort when he/she believes that: ✓ the understanding of an individual’s goals
✓ the linkage between effort and performance
1. Effort will lead to a good performance appraisal
✓ the linkage between performance and rewards
2. A good performance appraisal will lead to rewards
3. The rewards will satisfy his/her personal goals
✓ the linkage between the rewards and individual goal satisfaction
Some critics suggest that the theory has only limited use, arguing that it tends to be more valid for
predicting in situations where effort- performance and performance- reward linkages are clearly
Expectancy theory: there are three different layers. He said that no matter who you are, if you perceived by the individual.
are poor or rich, everyone has three types of aspects. The rewards-to-goal is the most difficult
one. He specifies that everyone has its personal goals. A good manager must embrace all its
personal goals.
Equity Theory -John Stacey Adams- (1925)
An individual’s effort level actually depends on 3 factors:
1. Effort-to-Performance (E → P) expectancy
an individual’s perceived probability that a particular level of effort will result in a particular
level of performance.
Expectancy is defined as a probability – ranging from 0.0 to 1.0

Equity theory – a process motivation theory that explains how people develop “perceptions of
fairness in the distribution and exchange of resources.”
The outcome/input ratio: the value of the outcomes you receive divided by the value of inputs
you provide in the exchange relationship.
Equity theory states that we must compare our situation to another one.
We form an Equity Evaluation after determining our own outcome/input ratio and comparing
this with another ratio.
Employee’s Influences at the time of choosing a referent (info and attractiveness)
• Length of occupation / Time within an organization

• Level in the organization
• Professional ranks and higher education
• Recent Promotions i.e. recent comparable Rewards within the Organization Goal-Setting Theory – Locke & Latham (1990)
Goals: the immediate or ultimate objectives that employees are trying to accomplish from
their work effort.
Goal setting: the process of motivating employees and clarifying their role perceptions by
establishing performance objectives
Management by objectives (MBO): a formal, participative goal-setting process in which the

organizational objectives are cascaded down to work units and individual employees.
Goals tell what needs to be done and how much effort is needed.
Perception of the effort drive into three different equations (equity, etc).
He says that when someone makes an effort on a daily proportional basis he gets the third
reward, he experience an equity mental feeling. But if your output is less than the others, then
you experience the negative inequity. Therefore, the main aspect is that introduces the
perception against others.
There are some recommendations that are that you must pay special attention to avoid
inequities among the workforce. The best way to dislike someone is trying to satisfy
Years later, we are proudful Americans and that the important thing is not self-determination.
everybody.
The real name of the game is establishing our own goal mechanisms. This is more right-handed
When employees perceive inequity, they can be predicted to make one of 6 choices: managerial approach. The manager is not the person who must address your personal goals,
you are the one.
1) Change their inputs –impacting on effort and motivation.
2) Change their outcomes –impacting on performance or quality.
3) Distort / deform perceptions of self
4) Distort / deform perceptions of others
5) Choose a different referent /reference point
6) Leave the field
5 Goals Characteristics / Features of Effective Goal-Setting (Locke
and Latham)
Specific goals: employees devote more effort into a task when they work towards specific goals
rather than “do your best” target
• Specific goals have measurable levels of change over a specific time
MBO in Action – Example Results-oriented goals improve work performance more than process-oriented goals.
Management By Objectives (MBO) Programs:
• Results-oriented goal directly refers to the person’s job performance
Challenging goals: employees have more intense and persistent work effort when they have
challenging rather than easy goals.
• Challenging goals also fulfil a person’s need for achievement or growth
There are limits to challenging goals, at some point, a goal becomes so difficult that
employees are no longer committed to achieving it.
Another influence on goal commitment is the employee's self-participation:
• SP01. Participation in goal formation – tends to increase goal commitment because

employees take ownership of the goal, compared to goals that are merely assigned by
supervisors.
Who are the intellectual fathers of MBO (exam)? Locke and Latham. • SP02. Participation may also improve goal quality, because employees have valuable
People that think I am set up agreed common goals. This has been one of the most important information and knowledge that may not be known to those who initially formed the
managerial theories. New managers go to new companies and say, hi, you know the truth, if goal.
you keep doing like that the company will be destroyed.
Everybody has a goal core. The willingness understood as the real desire in order to achieve
Reinforcement theory (B. F. Skinner)
the expected goals. Reinforcement theory is the process of shaping behavior by controlling the consequences of
the behavior.
Principles of Effective Goal-Setting
In Reinforcement theory a combination of rewards --and/or punishments-- is used to reinforce
desired behavior or extinguish unwanted behavior.
Operant behavior: any behavior that generates a consequence. Called this way because the
individual operates on his or her environment.
Operant conditioning: relationship between the operant behavior and the associated
consequences.
Reinforcement theory ignores the inner state of the individual and concentrates solely on what
happens when one takes some action.
Skinner methods still very actual. Says that every time you make an action you produce a
reaction. The second time another person makes the actions again, the reaction will double
up. There are some people who are really brilliant people that they get the message and
corrects themselves, but there are another kind of silly people that they read reaction models.
The main principle should be clarity when expressing the goals, it should really become a real
challenge, you must reward the commitment, the same way you must provide feedbacks,
some explanation about the task. And, at the end of the day, if you mix everything well you
can get higher returns compared to the first early stage.

Generally speaking, there are 2 types of reinforcement: Positive Reinforcement
• Positive reinforcement results when the occurrence of a valued behavioral • a salesperson that makes an extra effort to meet a Sales Quota (behavior) and is then
consequence has the effect of strengthening the probability of the behavior being rewarded with a bonus (positive reinforcer).
repeated. The specific behavioral consequence is called a reinforcer. The administration of this positive reinforcer should make it more likely that the
salesperson will continue to make the necessary effort in the future.
Means that when you experience a positive behaviour, it comes along subsequently with an
special reward. There is an action and reaction in terms of reward. Smartest people do excel Negative Reinforcement
this
• a salesperson that makes effort to increase clearly sales in his or her sales territory
• Negative reinforcement results when an undesirable behavioral consequence is kept, (behavior), which is followed by a decision not to reassign the salesperson to an
with the effect of strengthening the probability of the behavior being repeated. On the undesirable sales route (negative reinforcer).
contrary to Punishment, which attempts to decrease the probability of specific The administration of the negative reinforcer should make it more likely that the
behaviors; negative reinforcement attempts to increase desired behavior. salesperson will keep on continuing and making the necessary effort in the future.
When a positive behaviour gets aligned with a negative consequence. Very controversial in
terms of usefulness because people won’t understand his effort in a good way.
Job Characteristics Theory – Hackman & Oldham (1980)
The Job Characteristics Theory of the workplace identifies 5 intrinsic dimensions or attributes
Thus, both positive and negative reinforcement have the effect of increasing the probability of the work that affect the performance and satisfaction of the employee:
that a particular behavior will be learned and repeated.
1. Variety
Operant conditioning theory argues that people learn to behave to get something they want or 2. Identity: what are the underlying goals of the job.
to avoid something they don’t want. 3. Meaning i.e. significance: the underlying importance of the job
In a daily basis, in a small medium company, due to the similarity we can create good 4. Autonomy: that you are given in order to deploy the job.
relationships. Internal legal procedures, 5. Feedback: there are two additional schools about feedback. It is advicible, but
not mandatory, it is something that depending of the personality of the boss,
will provide you, and there is people who accept the feedback and others
which reject the feedback.
In general terms, people who work in enriched places have higher levels of motivation,
satisfaction and productivity.
MPS number that gives you a glance of the attractiveness of the job.
Factors affecting Workplace Motivation: Preliminary

Considerations
1. The complexity of the process of motivation means that simplistic approaches based
on instrumentality theory are unlikely to be successful.
2. People are more likely to be motivated if they work in an environment where they are
valued for what they are and what they do.
3. A reasonable degree of autonomy and scope for the use of their abilities should be
recognized.
4. Need to provide people with the opportunity to develop and grow should also be
recognized as well.
Factors affecting Workplace Motivation: New Schemes
5. Culture of the organization in the shape of its values and norms will significantly
affect motivation.
6. Motivation will be enhanced by effective leadership: leadership behaviours that
inspire workers to a greater sense of mission.
There are 4 key elements which synthesize and describe the specific behaviour of a person
with regard to the specific job assigned and within an organization.
1. Job Satisfaction: Attitude that the person adopts towards their work, from a global
point of view or in relation to the different aspects of the workplace.
2. Job Enlargement: The investment of an employee’s physical, cognitive and emotional
energies into job performance. Commitment of the employees with the company.
3. Organizational Commitment: Degree in which an individual identifies with the
In felt empowerment we have to take into account some factors such as the work is
organization and with its objectives.
meaningul, feeling confident that one can perform the job, etc.
4. Self-Efficacy i.e. Effectiveness: Perception of the own abilities and aptitudes that
influence the choice of the actions of the employee (“I am able to do this job / I am
not”)
Fundamental basis i.e. concept of change management: in order to favour and strengthen the
Identification / Consistency Loop as well as increase Motivation, the organization must tackle
those 4 factors.

Job Satisfaction = f (Dimensions, Variables)
Dimensions of satisfaction: Job Satisfaction Effects
Effects on Performance:
1. Intrinsic characteristics of the workplace
2. Economic compensation 1. Is a satisfied worker a more productive worker? Low positive correlation, with some
3. Opportunities for getting promotion contradictory results following some researches.
4. Relations with heads, boss and directors 2. However, we’d assume, productivity positively affects satisfaction
5. Relations with classmates i.e. colleagues 3. Organizations with more satisfied % employees, generally get better results
6. Physical conditions of work
Satisfaction tends to increase if:

Effects on Abstenteeism and Rotation –Turnover-:
1. Work itself is intrinsically motivating and challenging
2. Rewards and economic compensation are fair 1. Proven fact: negative relationship between satisfaction and absenteeism levels
3. Boss and colleagues provide support and recognition 2. Negatively related to labor turnover, especially for low-performing employees.
4. The physical condition of work are favourable
5. Others: compatibility between personality and workplace
Effects on customer satisfaction:
1. Satisfied employees tend to increase customer satisfaction

The “classical” 10 Main Factors than affect Job Satisfaction: 2. Unsatisfied clients increase the job dissatisfaction of the employee
1. Good pay: you get paid the canteen, the gym, etc.
2. Job security
3. Location
Effects of Incentives on Performance: “Operational Tools”
4. Interesting work
Extrinsic incentives New workplace regulations and procedures General incentives
5. Recognition for work
linked to results Collective or individual reqards i.e. bonuses
6. Promotion opportunities
Training specific courses
7. Friendly work atmosphere Team-building activities
8. Getting on well with the boss Intrinsic incentives Involvement in work design/with operational work
9. Flexible working hours Fostering identification with the objectives of the organization
10. Others benefits like company car, health & pension funds –organizational commitment-.
Certain levels of empowerment and autonomy to the group in
order to manage itself the task
Effects of Incentives on Performance: “Operational Decisions”
Managers can produce Impact on Employee’s Conduct i.e. Behaviour through
1. Hiring and attracting people to the organization (that has satisfaction to join the
company and enjoy with the Corporate Culture)
2. Leveraging strict compliance of tasks with New Flexibility Measures: Which get better
the work-environment: keeping on & performing the standard levels of quality and
quantity in terms of effort and performance but showing at the same time some New-
Flex-Procedures.
3. Applying reward to minimize “Effort over the minimum”: An effort that allows you to
achieve a performance superior to the minimum required: setting up specific
incentives.
4. Promoting Innovation and Cooperation through the adoption of joint initiatives with
other employees or departments.
Prior step to crisis: Providing an effort over a minimum.
Step 1: Elevating the minimum level.
When crisis appear, salespeople must double the effort to sell cars.
10 Ways that can Enhance Motivation

1. Develop performance management processes that enable expectations to be agreed
and create opportunities for feedback.
2. Develop total reward systems that provide both financial and nonfinancial rewards
and recognize the importance of intrinstic as well as extrinstic motivation.
3. Contribute to the design of jobs and roles that take account of the factors affecting the
motivation to work, especially variety, responsability, autonomy and the scope to use
and develop skills and abilities.
4. Provide opportunities for learning through personal development planning as well as
regular and formal training.
5. Implement career development –Career path- and planning processes.
6. Set up competence frameworks that focus on leadership qualities and behaviours
expected of managers and team leaders.
7. Ensure that leadership potential is identified through performance management and
assessment centres i.e. specialists.
8. Provide specific training and guidance to managers on how they can motive their staff.
9. Contribute to the development of a –midterm/long-term culture in which the values
and norms support processes for valuing and rewarding employees.
10. Avoid the trap of developing strategies that are based on simplistic notions of
motivation and do no take into account individual differences and the limitations of
money as a motivator.
STRATEGIC MANAGEMENT→ TOPIC 4: MANAGEMENT AND LIDERSHIP
1. LEADERSHIP VS MANAGEMENT
Definition of leadership: the ability to influence a group toward the achievement of a vision or set of goals
It is a managerial theme endowed with a high dose of personal subjectivity within companies
Leadership can vary depending on the moment/situation in which the corporation is undergoing
Professor J.M.Vecian: Dynamic action process of a person –leader -on others (human group) in order to guide a
behaviour towards a determined objective through a decision priority which gives him his position of power.
Not all leaders are managers, nor all managers are leaders
1. Formal management: carried out by chief/boss
2. Informal management: exercised by leader. Often is more important than normal influence
1.1. EFECTIVENESS OF A CHIEF/HEAD/BOSS

Will tend to increase to extent that simultaneously it also becomes a leader of its group
CONCEPT FOCUSED CONCERNS
Usually been associated more with
On the birth and creation of a About the execution of the
the spirit of developing a mission
strategy Operational Plans of a company
and vision within a corporation
STRONG LEADERSHIP & MANAGEMENT LEADERS

Needed for: Needed for:
1. Optimal effectiveness 1. Challenge the status quo
2. Building corporate culture 2. Create visions of the future
3. Increase organizational resilience in a VUCA 3. Inspire organizational members who want to
environment achieve visions
Leaders –among other activities- must formulate detailed plans, create efficient organizational structures and
oversee day to day activities
Limits and boundaries between both meanings are getting diminished following some authors
1.2. TYPES OF LEADERSHIP

FEATURES FORMAL LEADERSHIP INFORMAL LEADERSHIP
Exercises the authority with an official Is influential through his behaviours and actions
position within the organization and to others
Authority
over employees
Can assign duties and tasks
Inside organization’s structure. (top of Is not inside a formal structure
Position in a
the pyramid)
company
Employees comply to their orders
Gets formally selected by someone Not formally appointed or selected
Comes from
Is placed into groups
Achieve organizational goals To satisfy individual goals along with formal goals
Helps to
They increase morale and job satisfaction
2. LEADERSHIP STYLES
TYPES
1) Personalistic theories: based on traits and personal features.
2) Behavioural theories: based on behaviour and conducts.
3) Situational theories: based on related contingences i.e. circumstances.
4) New recent approaches
1 -PERSONALISTIC THEORIES
General statement: Leaders are born, they are not made
Personal traits & set of characteristics
Psychological personality, social, physical or · Ambition and energy
intellectual characteristics that differentiate the · The clear will & need : I want to lead
“leaders born” from non-leaders · Honestly and integrity
· self-confidence
They are based on the fact that only some people
· Intelligence
possess the necessary and adequate
· High degree of self-control
characteristics to effectively become leaders
· Relevant knowledge of related work and
· Capabilities to accept High Levels of responsibility
With higher score obtained, higher are the probabilities of becoming a leader and being perceived as one.
2 -BEHAVIOURAL THEORIES
General statement: Behaviours distinguish clearly between good leaders and those not
Behaviours can be taught and learned
Inner learning process: is fully advisable in order to discover which particular behaviours the manager puts intro
practice and -if suitable- the required training needs to improve his performance style
Environment and culture particularities becomes key in order to favour effective leadership
THEORY BAHEVIOURAL DIMENSION CONCLUSION

Democratic style: involves Democratic style of leadership was
subordinates, delegates, authority most effective, although later
Autocratic style: dictating work studies showed mixed results
UNIVERSITY OF LOWA methods, centralised decision
making
Laissez-faire style: giving freedom
of decision making and work
Consideration: being considerate High consideration and initiating
of followers’ ideas and feelings structure leader achieved high
OHIO STATE Initiating structure: structuring subordinate performance and
work and relationships to meet job satisfaction (not always)
goals
Employee oriented: taking care of Employee oriented leaders were
employees’ needs associated with high group
UNIVERSITY OF MICHIGAN
Production oriented: emphasis on productivity and higher job
task jobs satisfaction
Concern for people Leaders performed best with a 9.9
MANAGERIAL GRID
Concern for production style (high both dimensions)
BEHAVIOURAL MANAGERIAL GRID: ROBERT BLAKE & JANE MOUTON - 1964

Highly controversial model (you will find some haters or followers)
It describes a leader’s degree of task vs person centred
Most of the managers have 2 options (behavioural dimensions): Highly genuine interest
 Concern of people: degree how a leader considers team members’ needs, interests
 Concern of results: degree how a leader emphasizes concrete objectives, organizational efficiency and
productivity
They differentiate into 5 potential styles
1. Impoverished Management: Focuses little on creating effective systems or a motivating team environment,
resulting in disorganization, dissatisfaction, and disharmony.
2. Produce-or-Perish Management: Emphasizes high productivity over people's needs, strict rules and punishment
for motivation. Initially yields impressive results but leads to low morale and difficulty retaining high performers.
I don’t care about personal circumstances
3. Middle-of-the-Road Management: Attempts to balance
results and people but often fails to inspire high performance
or fully meet people's needs, resulting in mid-level
performance.
Genuine, balanced management style about people and team
4. Country Club Management: Prioritizes team members'
needs and feelings, leading to a relaxed work environment
but low productivity due to lack of direction and control.
5. Team Management: The most effective style, prioritizing
both production and people's needs. Inspires and empowers team members, leading to high satisfaction,
motivation, and excellent results through trust and respect.
It’s very difficult to give a 100% of you, because there are outside circumstances that affect the scenario and your
behaviour
3 -SITUATIONAL THEORIES
GENERAL STATEMENT: A way to overcome the problems of behaviour to achieve good results in any circumstance
The are some situations that you cannot control, then appears SITUATION THEORIES
Refers to a leader who adjusts his style to fit the development level of the followers he is trying to influence
The style may change continually to meet the needs of others in the organization based on the situation.
Situational leaders adjust their leadership style according to the:
1. Circumstances – situation
2. The developmental level of the employee, that depends likewise on his skills and motivation
*AC MILAN: it were not my ideas; I was lucky because I met a team that they were prepared
PAUL HERSEY AND KEN BLANCHARD’S SITUATION LEADERSHIP THEORY (1969)

Focused on the employees/followers/collaborators: argues that successful leadership is achieved by selecting the
right leadership style which, likewise, is contingent on the level of the employee development
*Practical and pragmatic approach: feeling hunger for getting improved
BASED on 3 dimensions CREATES 4 specific leadership styles
1. Task: directive behaviour -guidance required. 1. Telling: high task: low relationship leadership
2. Relationship behaviour: support required. 2. Selling: high task: high relationship leadership
3. Level of employee development: readiness. 3. Participating: low task: high relationship leadership
4. Delegating: low task- low relationship leadership
IMPORTANT CONSIDERTIONS:
 Leaders must identify the level of mentoring that needs any
particular employee
*Mentoring comes from Socrates and Platon
 Dynamic process: ideal situation should arrive when most
of the workforce are acting under the D-delegating scheme
OUTCOMES OF THE HERSEY & BLANCHARD’S THEORY
a. Leaders must control followers as they become more competent
b. Leaders must instruct followers in new capacities that allow them to be more polyvalent and productive,
thus, there is an increase in the Knowledge Capabilities and in the organization’s productivity
PATH-GOAL THEORY: ROBERT HOUSE (1971)

Don’t made my life sad through your bad behaviour
 Defines goals
 Clarifies path
 Removes obstacles
 Provides support
It extracts and adapts key elements from the Ohio State
Leadership Research
Centres on how leaders motivate subordinates to accomplish
designated goals, emphasizing the relationship btw:
▪ Leaders style
▪ The characteristics of the subordinates
▪ The work-task job itself
Leader’s job: provide necessary direction & support to ensure that their goals are compatible with firm objectives
PATH-GOAL: comes from the belief that effective leaders clarify the path to help their followers achieve work goals
Framework: he divides (creates) a very different framework splitting into 4 potential styles
Path-Goal theory: a manager have to take into consideration a shared goal objective
Directive leadership: the leader gives guidance of performance to subordinates
1. Supportive leadership: the leader is friendly and shows concern for subordinates
2. Participative leadership: the leader consults with subordinates and considers their suggestions
3. Achievement-oriented leadership: leaders set high goals and expects high level performance
It advises to us how to reach to some situations: (table situation and appropriate leadership style)
SITUATION LEADERSHIP STYLE
High role ambiguity
When employees have.. Low abilities DIRECTIVE
External locus of control
Boring and repetitive
When tasks are… SUPPORTIVE
Stressful
High abilities
When employees have…
High internal locus of control PARTICIPATIVE
When the decision is… Relevant to employees
High abilities
When employees have… ACHIEVEMENT-ORIENTED
High achievement motivation
Contingency factors
4-NEW RECENT APPROACHES
TIPOLOGIES:
1. Charismatic Leadership
2. Transactional and Transformational Leadership
3. Authentic Leadership
4. Emotional Intelligence Leadership
CHARISMATIC LEADERSHIP THEORY
Charismatic leaders
Are those ones that are visionary leaders “Sobresaliente”
Appear under revolution changing scenarios
Charismatic leader: A president Smith, a follower of doctor how creates the SPD
1. DEFINITION: Is a positive & compelling quality that makes many others want to be led by that person.
2. THE TEORY STATES THAT: leaders possess exceptional characteristics that cause loyal & inspired followers
 Communicate shared group goals and convey confidence in their own abilities and those of followers.
 Emerge when new radical goals are to be set up and situational conditions are unstable:
o People/followers tend to demand clarity of purpose and vision when envisaging a new future.
 Possess exceptionally high -quality social skills & an ability to inspire followers at a deep emotional level.
3. CHARACTERISTICS:
a. Potential underlying heroic or extraordinary leadership acumen
b. Visionaries with some aspects of revolutionaries
c. They turn that vision into reality
d. Behaviour through determination and commitment
e. Seen as agents of change: radical
f. Able to add and join forces → followers for its cause
g. Often associated to these charismatic leaders further features like:
i. Assuming personal risk
ii. Sensitivity to the needs of followers and the environment
iii. Non-conventional behaviour
TRANSACTIONAL AND TRANSFORMATIONAL LEADERSHIP
TRANSACTIONAL LEADERSHIP TRANSFORMATIONAL LEADERSHIP
Team members agree to obey their Leaders stimulate and inspire their employees
leader when they accept the job. and followers to achieve extraordinary outcomes
“Transaction” involves the company Transformational leader is able aligning:
1. DEFINITION
paying the employees in return for the a) the objectives and goals of the followers
effort and compliance b) the leader itself goals
c) the organisation ones [Bass & Riggio, 2006]
Leaders promotes compliance of the The leaders help employees discovering in the
2. THE THEORY
employees through both Reward and process their own leadership capacities.
STATES THAT
Punishments
· Apply link effort-reward · Arouse emotions
· Reactive · Proactive and forms new expectations
· Rewards, punishment & sanctions to · Capacity to inspire and provide individualized
3. FEATURES
control employees (followers) considerations
· Rewards for desired performance · Creates learning opportunities
· Conditions: Transaction for Goals · Strong emotional commitment of employees
· Works within a system · Works to change a system
4. HOW IT
· Solving by fitting experiences · Solving by finding experiences that doesn’t fit
WORKS?
· Where’s the step by step? · What do we need to change?
· Minimizes variation of the organization · Maximized capability of the team
5. WHAT IT · Everyone must meet a standard · Inspires many people to give their best
DOES? · Can be duplicated & sustained · Requires minimal structure
· Best at delivering defined results · Best at delivering innovation
TRANSFORMATIONAL LEADERSHIP DIMENSIONS
IDEALIZED INFLUENCE
Gains the trust and confidence of the followers: they admire the leader as a role model and respect their decisions
Leaders: generates trust, admiration, loyalty & respect amongst followers through charismatic vision & behaviour
Creates idealized influence through:
· Articulating a vision and explaining how to attain the · Sharing risks with followers
vision in an appealing manner · Emphasizing values and reinforcing them by symbolic
· Leading by example actions
· Acting confidently and optimistically · Displaying a high level of ethical and moral conduct
INSPIRATIONAL MOTIVATION
Leaders: inspires followers toward new ideas or goals, also to elevate them from low levels to attain higher levels
through inspirational motivation
Motivates their followers through:
· Development of a shared vision in both economic and · Motivational speeches and conversations
ideological terms · Public display of optimism and enthusiasm
· Making sure every follower takes part of the vision · Stimulating teamwork
n
INTELLECTUAL STIMULATION
Leaders: encourages change through intellectual stimulation aimed at self-reflective change of values and beliefs
without fear of punishment or ridicule
Help to develop capabilities to solve problems in many ways:
· Creation of a climate that favours critical examination · Create a conductive environment conductive share
of notions, beliefs and status quo and create knowledge
· Encourages innovation and creativity · Highlights sensitivity to environmental changes
INDIVIDUALIZED CONSIDERATION
Leader: treats each follower as a whole individual rather than as an employee, and considers the individual’s
talents and levels of knowledge to decide what suits him or her to reach higher levels of attainment
Applies such individual considerations by:
· Listening to ach follower’s needs and concerns · Ensuring fair workload distribution
· Expressing words of thanks as a means of motivation · Undertaking individualized career counselling and
· Private notes of congratulations to boost self mentoring
confidence · Public recognition of achievements and initiatives
“A leadership style focused on effecting “Occurs when one or more persons engage
revolutionary change in organizations through with others in such a way that leaders and
a commitment to the organization’s vision” followers raise one”
- Sullivan and Decker -2001- - MacGregor-
-. -.
AUTHENTIC LEADERSHIP
Walumbwa, Avolio, Gardner, Wemsing & Peterson 2008.
“A Pattern that draws upon and promotes both positive psychological capacities and a positive ethical climate, to
foster greater self-awareness, an internalized moral perspective, balanced processing of information, and
relational transparency on the part of the leaders working with followers, fostering self- development.”
Avolio & Gardner – 2005: leadership can be nurtured & developed over lifetime and modified by major life events
The authentic leadership behaviour is grounded in positive psychological qualities and strong ethics
1. ITS COMPONENTS
▪ Self-awareness: to what degree is the leader aware of his strengths
o How others see him and how the leader impacts others
▪ Relational transparency: to what degree does the leader reinforce a level or openness that provides them
an opportunity to be close with their ideas, challenges and opinions
▪ Ethical – moral: to what degree does the leader set a high standard for moral and ethical conduct
o Being guided by internal moral standards which are used to self-regulate one’s behaviour
▪ Balanced processing: to what degree does the leader asks for sufficient opinions and viewpoints prior to
make important decisions
n
2. CHARACTERISTICS OF AUTHENTIC LEADERS

1) Understand their purpose and make it understand
to thirds
2) Strong values: have genuine desire to serve others
3) Build trusting relationships
4) The do practice self-discipline
5) Act from the heart
3. FINAL CONSIDERATIONS
a. A leader is someone who has followers
b. Others will decide your authenticity
c. Key role of leaders: Meaning maker → you have to look for meaning for yourself and others
d. Consistency between what the company is doing and what they want to do
▪ Set up the new vision
▪ Tackle decisions, tackle actions
e. Genuine authentic leaders: exhibit leadership from heart & conviction
▪ Base their actions on their values: are originals, not copies
EMOTIONAL INTELLIGENCE LEADERSHIP

EI term was created by Peter Salavoy and John Mayer, and popularized by Dan Goleman – 1996
“The ability to perceive emotions, to access and generate emotions so as to assist thought, to understand
emotions and emotional knowledge, and to reflectively regulate emotions so as to promote emotional and
intellectual growth”
Understand and manage a person’s own emotions,
You have to be aware that emotions can:
and those of the people around you implies:
1. Recognize, understand and manage our own 1. Drive our behaviour
emotions 2. Impact people (positively and negatively)
2. Recognize, understand and influence the emotions 3. Learning how to manage those emotions- when we
of others are under pressure
People with a high degree of emotional intelligence know what they are feeling, what their emotions mean and how
these emotions can affect other people
5 COMPONENTS OF EMOTIONAL
INTELLIGENCE AT WORK
The beast leaders don’t know just

one style of leadership, they are
skilled to several and hace the
flexibility to switch between
styles as the circumstances
dictate
GOLEMAN’S LEADERSHIP STYLES
3. THE GOLDEN CIRCLE -SIMON SINEK (2012)

“If you hire people just because they can do a job, they’ll work for your money
But if you hire people who believe what you believe, they’ll work for you with blood and sweat and tears”
Sinek Golden circle shows how some leaders are able to inspire action instead
of manipulating people to act
It starts from an inside out approach: it should all start with WHY
*S.S Is the author of that theory → WE ARE A PURPOSE COMPANY
Who does interviews searching for purpose profiles
*Highly controversial theory (semafor) → catchy spirit, market analyse theory
*Connected property well with new generation approaches
3 LEVELS: 15 March → small revolution in Spain
1. WHY 3. WHAT 2. HOW
This is not about making money – is Everyone is easily able to describe Is used to explain how something is
about results the products or services a company different or better
Is about the purpose, cause or sells or the job functions they have Differentiating value proposition
belief. Spirit within the system Unique selling proposition
The downtown of the circle
Why does your company exists What product do you sell? How do arrive to your clients?
Why do you get out of bed in the What is your job? How do you make your product?
morning? What is the service that you offer? How do you achieve the objectives?
1. VIERALIZATION (G.C/S.S): became a hit → applied in the mass media (audio visuals) industry, they feel
identified with the theory
2. ACCEPTING LEVEL→ gain it in new demographic generations
4. MANAGEMENT BY OBJECTIVES. PARTICPATORY MANAGEMENT BY OBJECTIVES

4.1. PARTICIPATORY MANAGEMENT BY OBJECTIVES (PMBO): a management style/approach with consensus and
participation of subordinates in the determination of business objectives as fundamental basis
Prof.Veciana → develop a valid approach regarding participatory management
Consensus between company vision, tasks carried out by employees and participation of the workforces
CHARACTERISTICS ADVANTAGES
• A management process 1. Overcome the possible conflict amongst the
• It integrates activities, tasks and related sequences multiple objectives of the organization
in a systematic way
• Focused on the achievement of concrete, tangible, 2. Set up and define standards in order to facilitate
verifiable and measurable goals the control and corrective actions made by own
• Collaborators share a huge amount of capacity of collaborators on an autonomous way in order to
decision with their immediate heads/chiefs. attain the objectives
• For an explicit period of time.
• Feedback on execution process and on
accomplished partial goals 3. Fosters Organizational Commitment: it´s a
Leadership and motivation system for employees to
meet the goals.
Alan Mulally: PUT IN A VERY EFFECTIVE WAY
He acted as the key person who rescued crashed corporations, he proved to rescue FORD
The architect of alphabet corporation (Google)
4.2. MANAGEMENT BY OBJECTIVES (MBO): a program that encompasses specific goals, participatively set, for
an explicit time period, with feedback on goal progress – Prof. Robbins
KEY ELEMENTS:
1. Goal specificity 3. An explicit time period
2. Participative decision making 4. Performance feedback
The MBO approach of Robbins has been compared with the “Goal-Setting theory” of Locke & Latham (1990)
Close similar in their arguments, the difference is: the participation of subordinates does not count in the latter
4.3. CASCADING OF OBJECTIVES
HOW DO YOU DIFFERENTIATE THESE 4

STAGES?
Photo of which stages appear in MBO
and Goal theory
*CHAOS:
Corporate director from FCB MARIBEL M. has resigned → due to private reason but is not the true
Economic vice president F.R. has also reassigned
4.4. FORMULATION OF OBJECTIVES: REQUIREMENTS

It’s difficult to apply the objectives SMART in an equity way
1. Clarity in its expression-definition
2. Set of limitations / conditions -with which, without, how
3. Deadline dates i.e./ or expected completion period
4. Verification Criteria ; quantitative/qualitative, temporary/cost criteria
5. Consistent
6. Challenging, but realistic
7. A few numbers of them
8. Weighted Goals: setting priorities, if any
9. Relatively stable-permanent in time
10. Understood and accepted by those who must put them in place
*3.000 → new name for FCB (is the way they are going to take)
ACCOUNTABILITY: self-responsibility , it goes beyond, implies a commitment to achieve the objectives (highly
important)
CONSISYENCY→ important to achieve a well MBO program, its not easy to achieve
SEAT: different motivations and expectations: electric, gas, benzine, diesel cars
AWARENESS
Not able to achieve the goal → you have to be honest
4.5. CONDITIONS FOR AN EFFECTIVE MBO
1. Use of a Participatory Management Scheme
2. Promote continuously high levels of feedback
3. Consistent formulation of the objectives
4. Control and exhaustive monitoring
5. High temporal dedication by Managers i.e. Heads. Bosses
6. Getting the Buy -In from collaborators: employees must perceive and sense a real sound and broad delegation
/ level autonomy in order to implement the actions / measures to achieve the objectives
4.6. POTENTIAL CAUSES OF MBO FAILURE

• Unrealistic expectations about the results of the MBO
• Lack of effective & real commitment of senior management → real accountability
• Incorrect allocation of rewards: unfair setting in relation to efforts i.e. commitments made to goals’
accomplishment → really important
• Interdepartmental inefficiencies when crossing & sharing Information, potential Cultural incompatibilities,
Unrealistic timeframe in order to get the expected results
STRATEGIC MANAGEMENT → TOPIC 5: GROUP WORKS: GROUPS IN ORGANIZATIONS
1. GROUPS AND TEAMWORK: CONCEPT AND TYPES

Groups: “Two or more individuals that develop a relationship, interact themselves, they are interdependent and
come together in order to achieve specific goals”- Prof. Robbins (1996)
Prof. J.M. Veciana (199): “A set of people who know each other, interact mutually, and perceive themselves as a
group”
CLASSIFICATION
FORMAL GROUP INFORMAL GROUP
Defined by organization’s structure, assigned work Alliances that are neither formally structured nor
group, designed in accordance with the formal organizationally determined.
structure (organizational charts) Emerge as a response to the social contact needs
Why do groups exists? Security, affiliation, status, self-esteem, power, achievement of goals
RANDOM CAUSES, COINCIDENCE CAUSES: other factors that influence on the formation of a group
1.1. STAGES IN THE DEVELOPMENT OF GROUPS- PROF.VECIANA
1. INTEGRATION PHASE 2. CONFLICTIVE 3. PRODUCTIVE

st nd rd
1 stage: need for affiliation 2 stage: need for power prevails, 3 stage: need for achievement
predominates people are fighting to get the predominates, the goal for the
power group are clear
TRANSITION EFFECT
The individuals characteristics of the individuals determine the speed with which the group moves from one phase
to another. There can very specific situations in which some of the above-mentioned phases actually coexist
*Reality shows: you can analyse that all the conflicts passes through these stages.
1.2. 5 STAGES OF GROUP DEVELOPMENT BY BRUCE TUCKMAN (1965-1977)

Author: “Development sequence in small groups”
Tuckman was also known for his research in college students
There are some cases in which you need to

experience some previous or formal emotions
STAGE FEATURES
▪ A great deal of uncertainty about the group’s purpose, structure and leadership
FORMING ▪ Members try to determine what types of behaviour are acceptable
▪ stage is complete when members have begun to think of themselves as part of a group
▪ A period of potential intragroup conflict
▪ Members accept the existence of the group, but there is resistance
STORMING
▪ Conflict over who will control the group
▪ When this stage is complete, there will be a relatively clear hierarchy of leadership
▪ Close relationships develop and the group demonstrates cohesiveness
▪ There is now a strong sense of group identity and camaraderie
NORMING
▪ Stage is complete when the group structure solidifies and the group has assimilated a
common set of expectations of what defines correct member behaviour
PERFORMING ▪ The structure at this point is fully functional and accepted
▪ Group energy has moved from getting to know & understand each other to performing
▪ For permanent work groups, performing is the last stage in their development
▪ The group prepares for its discharge: they get dissolved as long as the goal has been
accomplished
ADJOURNING ▪ Attention is directed toward wrapping up activities
▪ Responses of group members vary in this stage. Some are upbeat, others may be
depressed and/or experience frustration with the generic goals achieved
2. GROUP DYNAMICS
2.1. GENERIC FACTORS
1. INTRINSIC CHARACTERISTICS 2. INTERNAL STRUCTURE OF THE 3. INTERNAL APPLIED GROUP

features & resources of group GROUP PROCESSES
members rules
personal background, personality, direction, roles, rules, status, Formal-informal leadership,
capabilities, expertise, expectations dimension, demography, decision making, communication
composition, cohesion level channels,…
4. ASSIGNED ACTIVITIES 5. CORPORATE & EXTERNAL FACTORS

tasks of the group conditions
level of complexity, pressure deadlines, Tasks strategy, structure, organizational resources,
already done once, new tasks.. formal regulations, organizational culture,
human resources policies, physical work
framework, incentives, rewards...
2.2. COHESION/COHESIVENESS OF THE GROUP
DEFINITION: Degree in which the members of a group feel united with each other and are motivated to continue
in the group
MEANINGFUL FACTORS THAT INCREASE COHESIVENESS WITHIN A GROUP
1. Dimension: reducing the size of the group. the smaller, the more cohesion
2. Spent Time together: increase working hours among members
3. Cumulative background of former tasks: assignments
4. Collective rewards: setting goals and promoting collective rewards more than individual
5. Overcoming difficulties in forming part of it
6. Potential threats from outside: potential isolation reinforce the Group
7. Underlying inter-group competition with other groups
EFFECTS OF GROUP COHESIVENESS ON PERFORMANCE
COHESIVENESS
ALLIGMENT OF GROUP AND
HIGH LOW
ORGANIZATIONAL GOALS
HIGH
STRONG INCRESE IN MODERATE INCREASE IN

PRODUCTIVITY PRODUCTIVITY
LOW
NO SIGNIFICANT EFFECT ON
DECREASE IN PRODUCTIVITY
PRODUCTIVITY
Here we use two criteria, the cohesiveness and the alignment of the group
The best situation: when there’s s a high cohesiveness & a high group alignment
You will always meet some employees that do not fit exactly to those effects
Capa Blanca: chess player
Boby Fisher: an instrument, he became a toy he never forget America
High competent high in terms in IQ, he was never fitting in this potential quadrans
* IT’S NOT A PERFECT QUADRANS

2.3. EFFECTIVENESS IN GROUPS
For instance: when plenty of people

have been analysing the productivity of
a soccer team (PSG, Paris Saint
Germain), the specialists say that one of the problems is that the potential productivity of this football team is
really high but due to internal reasons, they have plenty of faulty process. As a consequence, the final productivity
gets diminished. Among other reasons, it looks like when you have in a high in a successful team plenty of ultra-
millionaire footballers, studently, egos do appear.
EFFECTIVENESS IN GROUPS – PROF. ROBBINS

INPUTS THROUGHPUTS
EFFECTIVENESS IN GROUPS – IVAN STEINER (1972)

Scientist, did a plenty of experiments
GROUP COHESION IS THE FORCE THAT BINDS A GROUP TOGETHER, HELPING TO PREVENT FAULTY PROCESSES
AP PP FP
The team The maximum Factors that go
performance at capability of the wrong in team
any given time group when performance which
(due to successful cohesiveness is impede/prevent
interaction) strongest group cohesion
Ivan Steiner (1972) developed a model to show the relationship between the individual abilities or resources in a
group/team and how team members interact
ACTUAL PRODUCTIVITY POTENTIAL PRODUCTIVITY FAULTY PROCESSES
Is the team performance at a given Is the team’s best performance Relate to factors that can go wrong
time during the game and when cohesiveness is strongest in team performance, which will
refers to the extent of successful prevent group cohesion and
interaction. detract from the collective
potential of the team
FAULTY PROCESSES
▪ COORDINATION LOSSES:
a. These occur when the operational effectiveness of the group cannot be sustained for the whole
time period the task requires
b. Ringelmann Effect: a potential coordination loss that leads to a breakdown in teamwork
i. Individual members becomes less productive as the size of the group increases
ii. Inverse opposing relationship between the number of people performing a task and the
amount of effort out in by each of them
iii. Example: imagine for a while that your teacher tells that you have to prepare a group project.
The maximum amount of people involved is six people. Following this effect, as long as the
group is based on six very different people, you will put less effort than if the group is only
based on four people. Every single human being thinks that the other people in the group will
do the work that I do not do. Therefore, at the end of the day, the final productivity is
diminished, get decreased.
c. Problems with team-coordination are more likely to increase as the number of members increase
▪ MOTIVATION LOSSES
a. This may occur if the task is too difficult, unrealistic or unachievable
b. Social Loafing: A motivation loss that leads to a reduction in effort
i. When an individual’s effort go unnoticed or when someone feels the others on their team are
not working hard enough
5. GROUP DECISION MAKING
Groups can be used as an excellent “decision-making tool” since the Group itself and its members can become a
source of inspirational breath solutions and inputs.
Nevertheless, the Group decision-making process should always bear in mind that:
 It demands Quality Spending Time
 In spite of aiming agreements, eventually could create Conflict
 Could lead and generate Conformity pressures as well, that eventually could impoverish the quality of
the decision itself
There are 2 phenomena or situations that affect the ability of the group to objectively evaluate alternatives and
achieve quality solutions, and, as consequence, can reduce their performance:
GROUP THINKING GROUPSHIFT

situations in which the group pressures to achieve meaningful number of members of the group
conformity and consensus (they pressure one person exaggerate finally and change their initial position
of the group in order to change their opinion, since his towards a more extreme conservative version of the
opinion is: unusual, atypical or unpopular) group’s original position, or often more daring and
Is dangerous: different thinkings riskier one
PRESSURE RADICL SHIFT
5.1 STREGHTS AND WEAKNESSES
ADVANTAGES WEAKNESSES
1. Further broad and comprehensive information – 1. Slowness: it requires more time than individual
due to points of view plurality. decision making
2. Diversity and variety of information sources, and 2. Conformism: pressure to adjust opinions or to give
of potential conclusions. in to internal and / or majority positions within the
3. Increased Quality and Effectiveness in decisions, group
often more creative, accurate and successful. 3. Potential prevalence by some members could
4. Consensus: agreed and shared acceptance of the eventually lead to bias in final decision
final solution 4. Ambiguous responsibility for consequences:
5. Legitimacy of the decision process: is established results of final decision
as a process that can be repeated
5.2. RATIONAL FRAMEWORK MODEL
Prof. Miguel Ángel Ariño: specialist in

taking group decisions in Spain
Incremental knowledge: S.J de Déu and

Valldebron Hospitals
BAYER/MONTSANTO creation
Source of knowledge
6. CONTRASTING GROUPS VS TEAMS

Work Group: a group that interacts mainly to share information and make decisions to help each member develop
at individual level within their area of competence-responsibility.
PSG worked as a work group: nowadays the coach is trying to change that
Work Team: a group where individual efforts result in performance -results- greater than the sum of individual
contributions, positive synergy.
6.1 TEAM EFFECTIVENESS: 4 DIMENSIONS

Really important
CONTEXT:
WORK DESIGN:
COMPOSITION: Personality
PROCESS: Social loafing- when you want to know
the high potential effectiveness of the group
6.2. TEAM TYPES

Prof. Robbins – Organizational behaviour classification
Strict and rigorous model
The are some teams that have a hidden mix among different types of the teams
Most: virtual teams
SELF.MANAGED - PROBLE-SOLVING - CROSS-FUNCTIONAL - VIRTUAL
6.3. TEAMS’ AUTHORS
1 -CLASSIFICATION: COHEN & BAILEY (1997)

▪ Work teams: continuing work units responsible for
producing goods or providing services.
▪ Parallel teams: pull together people from different
work units or jobs to perform functions that the
regular organization is not equipped to perform well.
▪ Project teams: produce one-time outputs and are
time limited.
▪ Management teams: coordinate and provide
direction to sub-units under their jurisdiction, laterally
integrating interdependent sub-units across key
2 -KEY ROLES: KENNETH &BENNE & PAUL SHEATS

There are 3 simultaneous types of group roles that provide likewise a compound grid of roles’ combinations:
1. Group Task Roles
2. Group Building and maintenance Roles -Social Roles
3. Personal / Self-Oriented Roles
These role are useful for looking at specific behaviours that occur
within a group and evaluating its current function and needs.
They also provide a guide for team member development, as the
more positive behaviours each person can display, the better able
the whole group will be to respond to the demands put on it
3 -KEY ROLES: THE “RAYMON BELBIN MODEL” (1981)

Belbin identified 9 team roles and categorized them into 3 groups:
1. Action Oriented
2. People Oriented
3. Thought Oriented
Was very criticised due to his theory and →
How will a person behave in a team?
*“Tiquismiquis” → completer finisher
Is not a perfect model, but it is very useful to give a
perfect picture of what the employee will perform in the
company
Each team role is associated with typical behavioural and
interpersonal strengths.
A good manager will observe the roles that are being filled
on the team, and step in when necessary to balance out the composition of the group.
4 -KEY ROLES: PROF. STEPHEN ROBBINS

You will show any of these characteristics in a group
You will play plenty of different roles
Absolutely important on effectiveness in a group
Especially when joining the group
7. TRANSFORMING INDIVIDULALS INTO GOOD TEAM MEMBERS
The Challenge-s a potential hurdles: Creation of “good players” team:
1- Overcoming individual resistance to affiliation 1. Selecting and training employees so that they can
within a group play their role in the team,
2- Counteracting excessive influence of individualisms becoming true “team players”.
3- Assigning enough work time and delegating 2. Adapting, implementing and referring to the
authority to solve problems or making rewards system to promote cooperative
decisions/corrective actions efforts while recognizing individual contributions.
4- In some cases, internal workforce resistance -
related to Change Management within
an organisation, when introducing teams in an
organisation that historically valued
individual achievement –as a widely shared belief.
CHARACTETRISTICS OF EFFECTIVE TEAMS:
▪ Teams can use the beats of each employee
▪ Teams are an effective mechanism to increase
PATRIC LENCIONI MODEL: THE FIVE DYSFUNCTIONS OF A TEAM

Easier to identify what is does not work compared to what does work
“Trust is knowing that when a team member does push you, they are
doing it because they care about the team”.
Not finance, not strategy, not technology. It is teamwork that remains the ultimate competitive advantage, both
because it is so powerful and so rare.
1. Absence of trust: they are not working as a team

2. Fear of conflict: provide a good team atmosphere
3. Lack of commitment: you do notice that
4. Avoidance of accountability: goes beyond responsibility- accept it
and know what you have to do
5. Inattention to results: you are not high competent team I you are
not implicated in results details
“A person who is humble, hungry and smart can add value to a team in
any environment”
In order to obtain an ambitious team: hamble, hungry and smart
CONFLICTS AND GROUP PERFORMANCE

Conflicts may be caused by differing goals, values or perceptions of the team members.
Conflict is a normal part of working in teams, because it brings creativity and helps avoid Groupthinking.
However, too much conflict-level can stop teams for doing their work and certain procedures should be followed
to get back on expected performance levels.
Some common sources of group conflict are listed in Capozzoli -1995- and Alessandra -1993-
 Values of team members
 Attitudes of team members
 Goals/Expectations – the processes and expected outcomes
 Roles and responsibilities of team members
 Limited resources
 Personalities
 Interdependency
 Increased interaction -frequency
Conflict could eventually show three common symptoms:
• Team members persist in arguing the same points.

• When the team reaches “a no-advance point”, talks and dialogues gets personal.
Accusations may be spoken out loud, and members may speculate privately about one
another’s motives.
•
Once negative attributions and reproaches have been expressed, emotions appear and
take place and team-progress gets paralyzed and team-cohesiveness damaged.
Allen C.Amason -1996- studied conflict and its role in decision-making. He stated that there are
two kinds of conflict:
• Cognitive: conflict based upon issues, ideas, processes or principles.

• Affective: conflict based upon personalities, emotions or values.
Researcher Thomas K. Capozzoli – 1995- classified conflicts by whether the outcome was
constructure or destructive.
• Conflicts are constructive when

1. When people change and grow personally from the conflict
2. The conflict results in a solution to a problem
3. The involvement of everyone affected by the conflict is increased
4. The team becomes more cohesive
• Conflicts are destructive when
1. No decision is reached and problem still exists;
2. Energy is diverted away from productive activities
3. The morale of the team members goes down
4. The team becomes divided
Another way to categorize conflict is by focusing on Performance Effects: they get illustrated
and often termed as either Function Conflict or Dysfunctional Conflict.
1. Functional conflict is at a level that enables a group to maximize its performance, and
the outcomes are desirable.
2. Dysfunctional conflict: when that conflict escalates to a level that disrupts the group
and gets in the way of accomplishing its goals, then it has become dysfunctional.
Managing the balance is the key to effective groups.
Plan Turbo - Eliminar los vídeos + 10 descargas sin publicidad por sólo 0,99€ / mes - Oferta limitada
Conflicts and Group Performance. The Thomas-Kilmann Conflict
Mode Instrument
TKI1- It’s based on a self-report questionnaire designed to measure your tendencies in dealing
with interpersonal conflict.
TKI2- It describes 5 conflict handling-modes and help you identify which of these modes you
use most often, launching to 5 “Conflict Modes”, since different styles have different goals.
1. Competing -Forcing-: the goal is to win

2. Accommodating: the goal is to yield
3. Avoiding: the goal is to delay
4. Collaborating: the goal is multiple participation
5. Compromising: the goal is to find middle ground solution
Step by Step Resolution Process: a -9 Steps Approach
1. Set up an environment that all parties know the goal is to resolve
2. Make sure all parties want to resolve it
3. All parties must accept the conflict as a mutual problem- not win/lose
4. Explore the reasons for the conflict
5. Generate solution options
6. Involved parties must agree on which solution is most appropriate
7. Implement the selected solution
8. Evaluate the success/failure of the solution
9. Celebrate or go back to #6
Conflicts and Group Performance

Six-step procedure for dealing with conflicts in teams
Guffey, Rhodes, and Rogin -2010- describe their six-step process for dealing with conflict in
teams
1. Listen: in order for everyone to understand the problem

2. Understand the other’s point of view: Listening makes understanding the other’s
position easier. Show this by asking questions.
3. Show a concern for the relationship: Focus on the problem, not the person. Show that
his or her needs are cared for and an overall willingness to resolve the conflict.
4. Look for common ground: identify both sides’ interest and see what you have in
common.
5. Invent new problem-solving options: brainstorm on new ways to solve the conflict
and be sure to be open to new suggestions.
6. Reach an agreement on what’s fair: Find a middle ground of what is fair and choose
the best option after weighing the possible solutions.

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STRATEGIC MANAGEMENT TOPIC 1: THE ORGANIZATION AS AN INSTRUMENT FOR BUSINESS

1. DEFINITION AND PRELIMINARY CONCEPTS

· An organization is composed by 4 elements: Structure→ Goals → Individuals → Collective

Prof. J.M. Veciana- 1999:

1.1. TWO TYPES OF CONCEPTS/ APPROACHES OF ORGANIZATION

Julian Assange: Every organization rests upon a mountain of secrets

1.3. 7’S McKINSEY

4 major activity blocks

3.2. FORMAL VS INFORMAL, TECH & INDIVIDUAL

· Consideration 1: technology does clearly influence

Managers: individuals who achieve goals through other people

4.1. MANAGERIAL PROCESSES AND ORGANIZATIONAL PROCESSES MATRIX

It helps providing/finding the answer to 9 critical key tasks/activities/ questions regarding

Managerial processes Organizational

4.3. HENRY MINTZBERG’S MANAGERIAL ROLES

We can divide the 3 roles into 10 profiles “IID”

1. Interpersonal role : A manager must provide at the same time 3 profiles

5.1. CONTRIBUTING DISCIPLINES

LOCURA → MUSHUP AS IT WAS/TAKE ON ME “HARRY STYLES” & BLINDING LIGHTS

5.2. CHALLENGES AND OPPORTUNITIES

5.4. UPCOMING, GROWING DISRUPTION

DIGITAL DISRUPTION: Across industries, digital is

6. HUMAN BEHAVIOUR IN ORGANIZATIONS

What determines human behaviour?

3 key factors that define a person

7. PERCEPTION: the attribution theory

8.2. DEPENDENT VARIABLES: a response that is affected by an independent variable

THE SUM OF BOTH VARIABLES =

The Key Questions The Answer is Provided by

Design 3. To whom do individuals and groups report? Chain of command

4. How many individuals can a manager efficiently Span of control

Organisation Structure Design must be understood as a tool, not as an end in itself.

Organization Structure Design involves analysing:

✓ The formal structure

Likewise, must provide answers to the following questions:

 How is the company organized? Mechanistic or organic (later on explained)

Decentralization: decision-making is made by mid-level or lower-level managers, rather

Decentralised: Mercadona, Nike (they adapt to geographic areas).

Nike is a decentralised company but in terms of HRM they are centralised.

◊ A highly formalised job implies a minimum amount of discretion.

Dimensions and Organizational Variables: The Mechanistic vs Organic Organisation

“There is not a single way to organize but depends on the context”

Factors and Inputs impacting on the organizational structure

2.1. Interdependence of tasks

Horizontal differentiation: is usually determined by specialisation in several functions i.e.

 Mutual adaptation or direct contact (informal communication), without resorting to

Vertical differentiation: implies a division of labor by applying the principle of hierarchy.

 Vertical differentiation affects the number of vertical/hierarchical levels or steps/links

1. Integration process is directly ruled by the degree of interdependence between

✓ Simple, fast and flexible o Difficult to maintain in anything

✓ Ability to perform standardized activities in a highly efficient manner.

o Subunits conflicts could arise in terms of some Management Priorities i.e.

One of the problems is that there are some internal contradictions.

The Matrix Organisational Structure

The strength is putting specialists together.

Product/Service Structure facilitates knowledge sharing: effective Team coordination becomes

▫ It requires likewise High Level of Commitment/involvement from the highest position

▪ It is the evolution of divisional or multidivisional structures

Network / Virtual Model

▪ It is the evolution of the previous models; Shamrock and Federal