Managers and management: using social media

Thanks for checking in to the second semester’s blog posts for 2014 for Management: The Essentials 2e. Want to broaden your understanding of Chapter 1: Managers and Management? You’ve come to the right place.

To start with…

…refresh your knowledge of managerial roles on pages 8 to 11 of the text, then check out this article on the effect that social media has had on a small tourism business in WA.

So, to summarise…

…we all know (perhaps a little too well…) the increasing power of social media.  It may still be too soon to tell how these technological tools have changed humanity, but it seems pretty clear that power is gradually decentralising – the traditional giant power brokers are facing a shift of power to the masses and the crowds.  This process is rapidly accelerating, with many social media platforms becoming an integral part of our lives.  How many of us DON’T have a Facebook profile?  Businesses have realised the potential of a direct access to many individual people, and the article provides a recent example of the power that social media has for a small business – it was, literally, the difference between a business’ life and death.

Just as the owner, Sean Blocksidge, had given up on the future of his tourism business, social media has turned his situation around.  A few favourable reviews on TripAdvisor have positioned him as the number one tourist attraction on Margaret River in WA, and his bookings have been completely full ever since.

To maintain this position and sustain the flow of customers, Blocksidge continues to update his business’ profile through Facebook and Twitter, posting attractive images from his daily expeditions.  This marketing method is cheaper and easier than the traditional costly advertising methods.  Instead of relying on alliance with industry associations (such as massive conglomerates of hotel chains, car rental companies and airlines), businesses can now communicate directly with their potential customers.

This engagement with social media has not only saved Blocksidge’s business, but also increased  tourism for the whole region!  What a demonstration of the power of the masses. It also shows you that managers can have a great influence – greater than what they may expect.

You may think that social media is “an old hat”, and as a manager you will have the advantage of being familiar with it – but just imagine what technological changes there will be by the time you get into the field!

Some issues to notice and pay particular attention to here are…

• External pressures/changes
• Managerial roles
• Managerial responses

Consider the following questions for discussion…

1. The article describes several pressures that are experienced by tourism businesses in WA. What are they?  Are there pressures you can think of that are not mentioned in the article?
2. In addition to the pressures, what changes in the business’ environment have prompted changes in the way the business is now marketing itself?
3. How did the owner-manager in this article respond to the change?  How do you think the manager’s wellbeing has been affected by this new mode of operation?
4. Which managerial role (planning, organising, leading, or controlling) is relevant to the addressing of each challenge that you have listed?

Foundations of control: Working from home

Controlling your business is very important, but modern work standards do not always make it easy. With more and more people working from home, researchers are keen to find out the advantages and disadvantages of this work model. There are many benefits to working from home. Employers can expect greater productivity from their employees because they are susceptible to less disruptions (providing, of course, no one else is at home). Businesses then require less space and fewer facilities: desks, phones, power, air-conditioning, public toilets, and parking lots. All these can be reduced if there is less staff on site. Employees can enjoy greater flexibility because they can go to the gym at 3:30pm but make up for it at 8:30pm. Employees also save time. There is no need to commute, but also there is no need to get dressed up, apply makeup, do one’s hair; hours and hours a year can be saved that way! And finally, the environment benefits even more. A study of greenhouse gas emissions in Brisbane showed that only a 20% reduction in rush hour commuters reduces greenhouse gas emissions by more than 50%. This is an important contribution to the global efforts to reduce greenhouse gas emissions.

However, working from home has its downsides. The article points to two major downsides. One is the unavailability of people to make decisions. If workers are not there they cannot be part of the decision making process, particularly when complex, customer-related issues are concerned. This issue is more of a problem in industries where face-to-face contact is important. For example, imagine you saw a doctor at the doctors’ surgery and he made his diagnosis. Two days later you realise that the treatment that he prescribed is not working and you go back to the surgery. If the doctor is working from home today, and you have to see another doctor, you would have to describe all the symptoms again, recall the treatment, and explain why it is not working. This is not only time consuming and irritating, it may also be dangerous if you leave out something that you have said to the first doctor. In this case, a doctor working from home may be counterproductive.

Another major downside mentioned in the article, is the lack of casual and informal interactions between workers. Because of the reduced number of interactions, there are fewer opportunities to discuss problems, resolve issues, and innovate. There is also less of a chance for building social relationships, which can create “social glue” to keep employees engaged with their work and workplace.

The article does not mention any control issues, but surely control would be one of the main reasons to NOT have all your employees work from home. Today, technology allows for excellent communication between people even if they are at different physical locations. Many jobs do not require face-to-face contact with other workers or customers. So, why not? Well, it has been forecasted that employers will actually like employees to return to the office. What are the control issues that you can think of that relate to working from home?

Some issues to notice and pay particular attention to here are…

• What managers measure
• How to measure and compare actual performance with planned goals?
• Cultural differences and controlling

Consider the following questions for discussion…

1. What should managers measure when they attempt to control employees who work from home? What are the challenges to such measures?
2. What types of jobs are more conducive to working from home? Name five jobs that you think are suitable for it. What sort of control is appropriate for each of these jobs?
3. What sort of corrective actions can be taken when employees who work from home do not meet the standards and expectations?
4. How does controlling employees who work from home vary across cultures? Are there any work cultures that would not be easy to control in these circumstances?

Communication and Interpersonal Skills: Board effectiveness

To start with…

…read this article on why boards need to get interpersonal, consider the following summary, and then answer the questions below.

So, to summarise…

Most managers, if asked, will list “communication” on the top three most important issues in their firm. Communication is the key to a functioning, living, and successful business. This is true on any level in the organisation – also at top management level.

A board of directors is usually responsible for overseeing the activities of an organisation. Typically, its members are top managers in the firm, as well as outsiders who have great knowledge and understanding of company management. They work together to direct and lead the organisation. Since it is composed of many people, who may have different perspectives on the company, their ability to communicate is essential to their firm’s direction. But it turns out, boards are not always great at what they do.

What gets in the way for functional boards: lack of trust between board members, which leads to silence when voices should be heard; personality and personal style differences; and ineffective delivering of feedback. Not all board members have had the opportunities to develop their communication and interpersonal skills, and therefore not all of them can equally contribute to the board’s effectiveness.

How can boards improve their functionality? Here are some suggestions: the personal development of each member’s communication skills; a commitment to continuous self-improvement of the members, including interpersonal skills in the selection criteria for board members, familiarisation with the company, and innate curiosity and passion to understand others. It all sounds great, but how easy do you think it is to find people like this in practice?

Some issues to notice and pay particular attention to here are…

• Barriers to communication
• Ways to overcome barriers to effective communication
• Negotiations and bargaining strategies
• Conflict management

Consider the following questions for discussion…

1. If you examine the communication process (p. 326-328), how would you describe communication in boardroom meetings? How important would nonverbal communication be in these meetings?
2. What barriers can potentially disrupt communication in boardroom meetings?
3. How can board members overcome such barriers?
4. Have a look at the interpersonal skills listed on p. 336-337. How would a deficiency in any of these skills affect the effectiveness of boards?
5. Would you expect negotiation skills to be important to boards? Why?
6. What is your view on the role of conflicts in board meetings? Are they useful or destructive? Why?

Leadership and Trust: Steve Jobs

Leaders can bring on amazing things. Leaders can inspire, motivate, change the lives of their followers, and sometimes even change the world as we know it. Leaders can have great power – just by the nature of their role. In this day and age, leading a company can be just as influential as leading a nation.

If you have not heard of Steve Jobs, you have not been on this planet over the last decade. The late founder of Apple was certainly a leader. Whether you love him or hate him, you cannot ignore the difference that Steve Jobs has made to modern life. He led to the development of a user-friendly personal computer, the kind that can be used by 80 year old grandmas; he led to the development of a purchasing system that adjusted the music industry into electronic times; and he also led to the development of the intuitive and easy-to-use iPods, iPhone, and iPad. Even if you are a Galaxy or Android owner, surely you understand that neither of these products would have existed if it wasn’t for Steve Jobs.

Steve Jobs can be classed as visionary, a motivator, an inspirational driving leader, but, having said that, he was no saint. Stories about Steve Jobs’ wrath and temper made his employees avoid taking the lift with him for fear of being fired. Steve Jobs used his charisma to advance his vision, but he had very little compassion for anything (or anyone) that stood in the way.

If you haven’t seen it yet, Steve Jobs’ speech at the Stanford University Graduation ceremony is a remarkable example of inspiration. In this speech, Jobs tells his life story from birth and explains how he has been working to change the world. He shares the great turning points in his life: the foundation of Apple, his separation from Apple, and his return to it after 10 years. Jobs’ message to the students is “stay hungry, stay foolish”, hoping their hunger drives them to continuously achieve and their foolishness to continuously innovate.

A far less polished presentation which criticises Jobs and his leadership can be found here. If you ignore the swearwords, a few legitimate complaints and criticisms can be identified in there. See if you can pick them out.

Whether you agree with that message or not, there is no doubt that humanity has always been driven to advance, develop, and progress. Leaders make these advancements happen in leaps, and Steve Jobs was one of these leaders. We are lucky to live in a time of such pivotal changes as the ones that he has induced.

Some issues to notice and pay particular attention to here are…

• Behavioural theories of leadership
• Charismatic leadership and visionary leadership
• Transactional and transformational leadership
• Trust

Consider the following questions for discussion…

1. What evidence can you find for Jobs’ leadership styles according to the categories defined by behavioural leadership studies (p. 297-301)? What evidence can you find for autocratic or a democratic style, employee or production orientation, and consideration or initiating structure?
2. How much transactional and how much transformational leadership do you think a leader of Apple needs to have? What elements of the two leadership styles can you identify in Steve Jobs?
3. What elements of charismatic and visionary leadership can you identify in Steve Jobs? What elements of the dark side of charismatic leadership would you say he had?
4. It is difficult, but try to identify how Jobs would score on each of the concepts of trust listed on p. 313 in you textbook. You can use other sources to determine these scores. How would these levels of trust influence Jobs’ success as a leader? What does that tell you about measures of trust?

Motivating and rewarding employees: Minimum wage

To start with…

…read this article on the indignation of workers at the minimum wage rise, consider the following summary, and then answer the questions below.

So, to summarise…

…managers can usually expect high wages, but many employees work for minimum wages – 1.4 million of them in Australia. These employees are very important to the economy, but also to our lifestyle and quality: they are the ones who prepare our food in restaurants and cafes; they are the ones who keep buildings, shops, and offices clean; and they are the ones who serve us at checkouts. What would you expect their motivation to work to be?

Recently, Fair Work Australia increased the minimum wage by 2.9 per cent a week. This increase is met with disappointment of employees and employers. Employees say that this rise will not cover the increase in living costs (i.e., electricity, gas, and water bills), and employers say that they cannot afford this rise in an already struggling economy.

As you read the article, see if you can identify which factors, from which theories, are raised by employees. Some mention their own needs, while others compare their pay rise with that of CEOs. It is interesting to see all the theories in this chapter in action when workers talk about their responses to their pay.

Some issues to notice and pay particular attention to here are…

• The hierarchy of needs of the workers
• Herzberg’s two-factor theory
• Equity theory and equity perceptions
• Employee recognition

Consider the following questions for discussion…

1. Which needs of the workers are raised in this article, according to the hierarchy of needs theory? Which needs are not mentioned? Why do you think these needs are left out?
2. How would you categorise the raise in terms of Herzberg’s two-factor theory? How do motivators normally get negotiated?
3. How does this article relate to equity theory and equity perceptions? Who are the referents mentioned in the article, and what other referents do you think are influential for workers?
4. How do you think this pay rise affects employee motivation, and why? What theory would explain that?

Understanding groups and managing work teams: A Big Bang

You have probably been a part of many groups: formal or informal.  You have probably experienced many of the stages of group development and have not even been aware of it.  You probably sensed, intuitively, the status of different members, the degree of group cohesiveness, and the roles played by different members.

You could go back in your mind and identify all these concepts in the group setting that you have been a part of – that would be a nice exercise.  But for the sake of consistency, have a look at the group that was formed by a few scientists in California, in a certain popular TV show.

The video starts with the story of how two group members got together as roommates.  Their initial interaction provides background on their personalities and early understandings that they have achieved.  The other two group members join later, and the norms in the group begin to emerge.

The group is not free of conflict (since one member has a particularly difficult personality), and various ways to address these conflicts are shown.  Finally, an acceptance of the group’s norms and rules is reached.

If you need further information on this TV episode, or you would just like to get some clarifications on its content, this website describes the full episode in more detail. In any case, episodes of The Big Bang Theory can be a nice relief after long hours of study.

Some issues to notice and pay particular attention to here are…

• Stages of group development
• Establishing norms in the group
• Status
• Group cohesiveness
• Team member roles

Consider the following questions for discussion…

1. Identify the stages of group development illustrated in this episode.  Can you relate to similar experiences in your life?
2. How were the norms established in this group?  Do you think it is an effective way to establish them?  What are the benefits and the risks of this strategy for establishing group norms in this way?
3. Can you identify different types of status among the different group members?  What contributes to this non-uniform status?
4. What is the degree of the group’s cohesiveness?  What evidence supports your answer?
5. What roles do the different members play in this group?  If you can assume what the group’s goals have been, how effective would you say this group is in achieving its goals?

Foundations of Individual Behaviour: Personality tests

Are you a man, or a mouse? Until you know yourself, it’s tricky to understand how to interact with others. What kind of person are you?

To begin your journey of self-discovery…

…read the summary below, and then visit Human Metrics and have a look around.

What’s the verdict?

…personality tests have received a LOT of criticism.  People can fake their answers, shape them to what the employer may like, score inconsistently over time – and so on.  But how bad are they, really?  This is a chance for you to find out (if you haven’t already tried before).

There are two tests you can take today.  One scores your personality according to the Myers-Briggs Type Indicator (MBTI®), and the other one scores according to the Big Five model.  They take a little time to do, particularly if you are doing them insincerely…

Once you have completed the tests and the scores and descriptions are available to you, have a read through them to see to what extent you feel like they have captured your personality.

You can also explore Jung Career Indicator^TM and see what types of career they suggest you choose based on your personality type.  How do you feel about them?

Some issues to notice and pay particular attention to here are…

• Participants’ experience during personality testing
• Participants’ concurrence with the results of personality tests
• Participants’ concurrence with suggested careers
• Difference and similarities between the different personality testing tools

Consider the following questions for discussion…

1. How did you feel during personality testing?  How would you feel if had to take one of these tests as part of a job recruitment process?  Would you keep your answers genuine?
2. How did you feel about the results of the tests?  Did you agree with them?  Could you have achieved a different result if your answers were slightly different?  What do you think of the accuracy of these tests?
3. How do you feel about the careers suggested to you?  Can you relate to any of these suggestions?
4. How the two test results compare?  Which one would you prefer to use if you needed to recruit people to work with you?  Why?

Managing Change and Innovation: Australian innovation

Innovate, innovate, innovate. How do you plan to manage change? Look at the following example to draw some inspiration for your future career.

To get cracking…

…revise pages 184-208 of Chapter 7 and really get your head around the theory in the text. Then, read this article and respond to the questions below.

So, to summarise… 

…innovation. The key to the difference between the kind of lives we have and the kind of lives our ancestors had 200 years ago. Innovation brought us electricity, mass media, mobile communication, and the internet. Innovation brought us comfort, convenience, medicine, and mobility. Innovation keeps driving us forward.

As far as countries and societies are concerned at this day and age, innovation is the key to sustaining a modern lifestyle. Innovative developments secure income far beyond that of production. Innovation is also a sustainable source of income (as opposed to, for example, minerals and natural resources). Therefore, there is no wonder Australia is highly concerned with its ability to generate innovative ideas and products.

There is, however, great concern for Australian innovation. On one hand, the government has invested a lot of effort and resources into the rollout of the National Broadband Network – so that communication is less restricted. On the other hand, can technological infrastructure alone encourage innovation?

In a recent TV show, Geraldine Doogue, Professor Alec Cameron, and Eric Knight discuss the impediments to Australian innovation. The discussion brings up the patterns of successful innovation in Australia: a good innovative idea, access to capital, access to supportive partners, and access to markets. The interviewees also point out the importance of the drive and determination of the innovators. Another important point raised is the importance of the success of a team. As said, no great soccer team is defined by its best player; it is all about the collaboration of the people in the team.

Along with access to funds, the size of the market in Australia has also been mentioned as an inhibitor of innovation. But in contrast, it is argued that Australian innovation does not have to lead to Australian production in order to be viable. An example of a collaborative venture where an Australian innovative solar technology is being manufactured in China is mentioned.

This discussion is very interesting. What if you compare it to the recent claims from technology’s elite about the National Broadband Network? They claim that the infrastructure alone is insufficient to stimulate innovation, but no one seems to take responsibility for anything but building the infrastructure.

Some issues to notice and pay particular attention to here are…

• Innovation variables
• Idea champions
• Change agents

Consider the following questions for discussion…

1. Your textbook mentions many innovation variables in figure 7.3, p. 199. These variables support the stimulation of innovation. Refresh your memory on these variables.
2. Which of these variables are mentioned in the discussion on Australian innovation? Which of them are sufficient according to the discussion, and which are not?
3. Which variables are mentioned in the NBN discussion? Which variables do you think are needed, in addition to the NBN infrastructure, to stimulate Australian innovation?
4. Who are the idea champions and the change agents who should be stimulating innovation according to the NBN article? And, according to the discussion on Australian innovation, who do you think they should be?

Managing Human Resources: Letting someone go

This week, we take a look at the future of ‘the workplace’ and what that means for managing people.

To start with…

…refresh your knowledge of human resource management on pages 154-183 in Chapter 5, then compare the following clips from the movie “Up in the Air”. One scene shows someone being let go in a thoughtful way, and the other is a far less considerate approach via video chat.

So, to summarise…

…letting someone go. As a manager, you may need to do that. You may have to decide who to let go, or you may just have to act on someone else’s decision and take away someone’s job because that was what you are asked to do. You may find it easy, particularly if you wanted the employee gone, but chances are that it will not be. Rejecting someone tends to be hard.

Downsizing is not uncommon in large companies or during difficult economic times – like our times. There are different ways to downsize, and they are listed in Table 6.2 on p. 160. As the textbook points out, any of these methods is likely to cause suffering to the employee; however, the way you deliver the news may also make a difference.

If you have not watched the movie “Up in the air”, this may be a good opportunity. The movie tells the story of a “professional firing agent”, who travels throughout the US to let people go. His life is well organised around this job, but things get a bit shaken when a new team member introduces a method of letting people go using video chat. The story holds a message that has not much to do with management studies, but it contains interesting scenes of how people can be let go.

Here are two scenes of letting go for you to watch. One is a scene where the agent lets someone go in a thoughtful way, and the other is done over a video chat with far less consideration. Put yourself in the firing-agent’s shoes. What would you have done in that situation?

Letting employees go affects not only the leaving employee. The remaining employees, as well as public opinion, are affected as well. People talk to one another, and word gets out. For example, Hastie’s SMS made the news, even though they did not actually lay people off. In your textbook, p. 173 identifies some of the issues around letting people go.

You may never find yourself in the position of having to let someone go. But if you do, whether you like it or not, you will probably play a very significant role in the employee’s life. This is why it is important to start contemplating the best way to play that role right now, so early in your career.

And at the very least, you have been introduced to a pretty good movie.

Some issues to notice and pay particular attention to here are…

• The effects of downsizing and layoffs
• Workforce diversity

Consider the following questions for discussion…

1. How does letting go affect the company? Who are the likely affected parties?
2. What could be the damage to a company when people are not let go gently? If you need some inspiration, there are a few ideas here. But keep in mind, many more options are possible.
3. What are the risks and disadvantages of letting people go gently? Why don’t all companies do it?
4. People from different cultures have different expectations. How would diversity in the workforce affect letting go strategies and techniques?
5. If it had to be done, which way would you like to be let go? Which way do you think you would let people go?

Organisational Structure and Culture: Strike action at BHP Billiton

Are you ready to face down an angry workforce threatening to stop work? No? Read on, young manager, to see an example in action…

To begin this time…

…refamiliarise yourself with the content of Chapter 5 to arm yourself for this scenario. Then, read this article about strike action at BHP Billiton, and consider the summary and questions below.

So, to summarise…

…the article reports recent intentions to go on strike by coal terminal employees of BHP Billiton. The workers are engaged in negotiations over labour agreement and have not been able to reach a mutually satisfying solution. 

The negotiations revolve around several issues: wages, staffing levels, and the inclusion of middle management in the agreements. Some issues have been resolved, such as wages, but others seem to remain conflicting.

The workers already proved that they are able and willing to go on strike last year. When they staged a rolling strike, the company’s output was significantly reduced. This reduction has a risky effect on the company’s share prices and public image, which can impede their performance in the future. Therefore, the company would clearly prefer to avoid a strike. But at the same time, the company cannot afford to grant all of the workers’ wishes; it has to consider the interests of all stake holders: shareholders, managers, customers, and public views.

As for you, as a manager, you might be involved in similar negotiations, and you are likely to find yourself considering the views of your employees and the views of the rest of the company. For now, let’s just focus on a few issues, detailed below…

Some issues to notice and pay particular attention to here are…

• Types of power influencing the situation
• Types of power that can influence the situation
• Organisational structure
• Organisational culture

Consider the following questions for discussion…

1. At the moment, the conflict between workers’ unions and the company involves different power bases.  Which power bases would you say it involves?
2. Which power bases can this situation involve and how?  Do you think more power bases would increase or decrease the chances of a resolution?
3. From the article, what can you infer about the structure of the organisation?  Since this is a large organisation, you probably won’t get all of its aspects, but what elements of structure can you identify?
4. The organisational culture plays a big role in shaping the expectations of the workers and their approach to negotiations.  What elements of organisational culture can you identify in the reported article?