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Advanced Project Management APM

Prepared by Dr. Ahmad Al Ghamdi

PMG 506
Advanced Project Management (APM)

Advanced Project Management

Prepared by Dr. Ahmad Al Ghamdi

Lecture 1

PMG 506


Advanced Project Management (APM)

Projects in Contemporary Organizations
Lecture 1

Projects in Contemporary Organizations
Lecture 1

Project management provides an organization with powerful tools that improve its ability
to plan, implement, and control its activities as well as the ways in which it utilizes its
people and resources.

Project management has emerged because the characteristics of our contemporary
society demand the development of new methods of management. Of the many forces
involved, three are paramount:
(1) the exponential expansion of human knowledge;
(2) the growing demand for a broad range of complex, sophisticated, customized goods

and services
(3) the evolution of worldwide competitive markets for the production and consumption

of goods and services

Projects in Contemporary Organizations
Lecture 1

Forces Fostering Project Management:
First, the expansion of knowledge allows an increasing number of academic disciplines to
be used in solving problems associated with the development, production, and
distribution of goods and services.
Second, satisfying the continuing demand for more complex and customized products
and services depends on our ability to make product design an integrated and inherent
part of our production and distribution systems.
Third, worldwide markets force us to include cultural and environmental differences in
our managerial decisions about what, where, when, and how to produce and distribute

Projects in Contemporary Organizations
Lecture 1

Three Project Objectives:
All undertakings have much in common, they are complex,
multidisciplinary, and have the same general objectives—
performance (or scope), time, and cost.
We refer to these as “direct” project objectives or goals.
The fourth dimension is the expectations of the client.
The expectations of client and project team should be aligned
and integrated throughout the entire project, but rarely are.

Projects in Contemporary Organizations
Lecture 1

The Project Manager:
The project manager (PM) is expected to integrate all aspects of the project, ensure that
the proper knowledge and resources are available when and where needed, and above
all, ensure that the expected results are produced in a timely, cost-effective manner.

The project manager’s job is not without problems.
• There is the ever-present frustration of being responsible for outcomes while lacking

full authority to command the requisite resources or personnel.
• There are the constant problems of dealing with the parties involved in any project—

senior management, client, project team, and public—all of whom seem to speak
different languages and have different objectives.

• There are the ceaseless organizational and technical “fires to be fought.”
• There are vendors who cannot seem to keep “lightning-strike-me-dead” promises

about delivery dates. This list of troubles only scratches the surface.

Projects in Contemporary Organizations
Lecture 1

Trends in Project Management:

• Achieving Strategic Goals
Projects that do not have clear ties to the strategy and mission are terminated and their resources
are redirected to those that do.
• Achieving Routine Goals
This is because lower level management has become aware that projects accomplish their
performance objectives within their budget and deadline, and hope to employ this new tool to
improve management of their functions.
• improving Project Effectiveness
The creation of a formal Project Management Office and the evaluation of an organization’s project
management “maturity”

Projects in Contemporary Organizations
Lecture 1

Trends in Project Management:

• Virtual Projects
Team members may never physically meet before the team is disbanded and another team
• Quasi-Projects
The final performance (or “scope”) requirements may not be understood, the time deadline
unknown, and/or the budget undetermined.

Projects in Contemporary Organizations
Lecture 1

A project is “A temporary endeavor undertaken to create a unique product, service or

project, program, task, and work packages.
Program refer to an exceptionally large, long-range objective that is broken down into a
set of projects. These projects are divided further into tasks, which are, in turn, split into
work packages that are themselves composed of work units.

Projects in Contemporary Organizations
Lecture 1

Attributes that characterize projects:
• Importance
It must be important enough in the eyes of senior management to justify setting up a
special organizational unit outside the routine structure of the organization.
• Performance
A project is usually a one-time activity with a well-defi ned set of desired end results.
Often, the project itself must be coordinated with other projects being carried out by the
same parent organization
• Life Cycle with a Finite Due Date
From a slow beginning they progress to a build-up of size, then peak, begin a decline, and
finally must be terminated by some due date.
• Interdependencies
Projects often interact with other projects being carried out simultaneously by their
parent organization.

Projects in Contemporary Organizations
Lecture 1

Attributes that characterize projects:
• Uniqueness
Every project has some elements that are unique. No two construction or R & D projects
are precisely alike.
• Resources
The attempt to obtain additional resources (or any resources) leads to the next attribute
• Conflict
The PM must be expert in conflict resolution, but we will see later that there are helpful
types of conflict. The PM must recognize the difference.

Projects in Contemporary Organizations
Lecture 1

Attributes that characterize projects:
• Nonprojects and Quasi-Projects
The use of a manufacturing line to produce a flow of standard products is a nonproject.
The production of weekly employment reports, the preparation of school lunches,
checking your e-mail. They are all routine
One common quasi-project in the information systems area is where the project includes
discovery of the scope or requirements of the task itself (and possibly also the budget
and deadline).

Projects in Contemporary Organizations
Lecture 1

The basic purpose for initiating a project is to accomplish specific goals. The reason for
organizing the task as a project is to focus the responsibility and authority for the
attainment of the goals on an individual or small group.
The project form of organization allows the manager to be responsive to:

(1) the client and the environment,
(2) identify and correct problems at an early date,
(3) make timely decisions about trade-offs between conflicting project goals,
(4) ensure that managers of the separate tasks that comprise the project do not
optimize the performance of their individual tasks at the expense of the total
project—that is, that they do not suboptimize.

Projects in Contemporary Organizations
Lecture 1


Advantages of using Project Management
• Better control
• Better customer relations
• Increase in their return on investment
• Shorter development times
• Lower costs
• Higher quality and reliability
• Higher profit margins
• Sharper orientation toward results
• Better interdepartmental coordination
• Higher worker morale

Projects in Contemporary Organizations
Lecture 1


Disadvantages of using Project Management
• Greater organizational complexity
• Organizational policy violation
• Higher costs,
• More management difficulties
• Low personnel utilization

The disadvantages seem to be the price one pays for the advantages. On the whole, the
balance weighs in favor of project organization if the work to be done is appropriate for a

Projects in Contemporary Organizations
Lecture 1

Most projects go through similar stages on the path from origin to completion, these
stages are the project’s life cycle.

Projects in Contemporary Organizations
Lecture 1

There is a strong correlation between the life-cycle progress curve of Figure 1-3 and the
effort curve of Figure 1-4 because effort usually results in corresponding progress.

For the S-shaped life cycle in Figure 1-3, percentage
of project completion is closely correlated with cost,
or the use of resources.
However, for the exponential progress curve in
Figure 1-5, the expenditure of resources has little
correlation with progress, at least in terms of final

Projects in Contemporary Organizations
Lecture 1

Risk During the Life Cycle:
There may be considerable uncertainty about our ability to meet project goals
(performance, time, and cost). The crosshatched portion of Figure 1-6 illustrates that

Projects in Contemporary Organizations
Lecture 1

Figure 1-7 shows how the uncertainty decreases as the project moves toward
completion. From project start time, t0, the band of uncertainty grows until it is quite
wide by the estimated end of the project. As the project actually develops, the degree of
uncertainty about the final outcome is reduced. (See the estimate made at t1, for
example.) A later forecast, made at t2, reduces the uncertainty further. It is common to
make new forecasts about project performance, time, and cost either at fixed intervals in
the life of the project or when specific technological milestones are reached.

Projects in Contemporary Organizations
Lecture 1

This approach is consistent with our belief that it is helpful to understand the entire
process of project management in order to understand and manage its parts.

Projects in Contemporary Organizations
Lecture 1

Projects in Contemporary Organizations
Lecture 1

Important takeaways
• This chapter introduced the subject of project management and discussed its

importance in our society. It defined what we mean by a “project,” discussed the need
for project management, and described the project life cycle.

• The three primary forces behind project management are (1) the growing demand for
complex, customized goods and services; (2) the exponential expansion of human
knowledge; and (3) the global production– consumption environment.

• The three prime objectives of project management are to meet specified performance
within cost and on schedule.

• Our terminology follows in this order: program, project, task, work package, work unit.
• Projects are characterized by their importance, specific end results, a definite life

cycle, complex interdependencies, some or all unique elements, limited resources,
and an environment of conflict.

Projects in Contemporary Organizations
Lecture 1

Important takeaways
• Project management, though not problem-free, is the best way to accomplish certain

• Projects often start slowly, build up speed while using considerable resources, and

then slow down as completion nears.

Projects in Contemporary Organizations
Lecture 1

Deliverables The desired elements of value, outcomes, or results that must be delivered
for a project to be considered complete.
Interdependencies Relations between organizational functions where one function or
task is dependent on others.
Life Cycle A standard concept of a product or project wherein it goes through a start-up
phase, a building phase, a maturing phase, and a termination phase.
Parties-at-Interest Individuals or groups (the stakeholders) with a special interest in a
project, usually the project team, client, senior management, and specific public interest
Program Often not distinguished from a project, but frequently meant to encompass a
group of similar projects oriented toward a specific goal.
Project Management The means, techniques, and concepts used to run a project and
achieve its objectives.

Projects in Contemporary Organizations
Lecture 1

Risk The chance that project processes or outcomes will not occur as planned.
Suboptimize Doing the best within a function or area but at a cost to the larger whole.
Task A subset of a project, consisting of work packages.
Technology The means for accomplishing a task.
Trade-off Taking less on one measure, such as performance, in order to do better on
another, such as schedule or cost.
Uncertainty Having only partial or no information about the situation or outcomes, often
due to ambiguity or complexity.
Work Package A subelement of a task at the lowest level in the Work Breakdown
Structure, used to assign costs and values.

Projects in Contemporary Organizations
Lecture 1

Thank you

Lecture 1


Prepared by Eng. Mosaab Hamed


Risk Management

Introduction to Risk Management


Approaches to defining Risk

• The Oxford English Dictionary definition of risk is as follows:

‘a chance or possibility of danger, loss, injury or other adverse
consequences’, and the definition of at risk is ‘exposed to

• In this context, risk is used to signify negative consequences.
However, taking a risk can also result in a positive outcome. A third
possibility is that risk is related to uncertainty of outcome.

Approaches to defining Risk

• The Institute of Risk Management (IRM) defines risk as:

“ The combination of the probability of an event and its

• Consequences can range from positive to negative.

Approaches to defining Risk

Types of risks

• Every risk has its own characteristics that require particular
management or analysis.

• Risks are divided into four categories:
• compliance (or mandatory) risks

• hazard (or pure) risks

• control (or uncertainty) risks

• opportunity (or speculative) risks

Types of risks

• In general terms, organizations will seek to minimize compliance
risks, mitigate hazard risks, manage control risks and embrace
opportunity risks.

Types of risks

• Control risks are frequently associated with Project Management.

• Uncertainties can be associated with the benefits that the project
produces, as well as uncertainty about the delivery of the project
on time, within budget and to specification. The management of
control risks will often be undertaken in order to ensure that the
outcome from the business activities falls within the desired range.
The purpose is to reduce the variance between anticipated
outcomes and actual results.

Types of risks

• Opportunity risks: sometimes, organizations deliberately take risks,
especially marketplace or commercial risks, in order to achieve a positive

• The focus of opportunity risks will be towards investment.

• Opportunity risks may not be visible or physically apparent, and they are
often financial in nature. Although opportunity risks are taken with the
intention of obtaining a positive outcome, this is not guaranteed.

• Opportunity risks for small businesses include moving a business to a
new location, acquiring new property, expanding a business and
diversifying into new products

Types of risks

• Hazard risks are the most common risks associated with
operational risk management, including occupational health and
safety programs.

Risk Description

• In order to fully understand a risk, a detailed description is
necessary so that a common understanding of the risk can be
identified and ownership/responsibilities may be clearly

• The next example is intended to distinguish between these four types
of risk:

Risk Description

Inherent level of risk

• It is important to understand the uncontrolled level of all risks that
have been identified. This is the level of the risk before any actions
have been taken to change the likelihood or magnitude of the risk.

• Identifying the inherent level of the risk makes it possible to
identify the importance of the control measures in place.

Inherent level of risk

• There is considerable debate about whether to undertake risk
assessment at inherent or current level, the purpose of any risk
assessment remains the same. It is to identify what is believed to
be the current level of the risk and identify the key controls that are
in place to ensure that the current level is actually achieved.

Inherent level of risk

Risk classification System

• Risks can be classified according to the nature of the attributes of
the risk, such as timescale for impact, and the nature of the impact
and/or likely magnitude of the risk. They can also be classified
according to the timescale of impact after the event occurs. The
source of the risk can also be used as the basis of classification. In
this case, a risk may be classified according to its origin, such as fire,
fraudulent, etc.

Risk classification System

• A further way of classifying risks is to consider the nature of the
impact. Some risks can cause detriment to the finances of the
organization, whereas others will have an impact on the activities
or the infrastructure. Further, risks may have an impact on the
reputation of the organization, or on its status and the way it is
perceived in the marketplace.

Risk classification System

• An important consideration for organizations when deciding their
risk classification system is to determine whether the risks will be
classified according to the source of the risk, the component
impacted or of the consequences of the risk materializing.

• It is likely that each risk will need to be classified in several ways in
order to clearly understand its potential impact.

Risk likelihood and magnitude

• Risk likelihood and magnitude are best demonstrated using a risk

Risk likelihood and magnitude

Risk likelihood and magnitude

• However, the more important consideration for risk managers is
not the magnitude of the event, but the impact of the event and
the consequences that follow.

• Because the impact (and the associated consequences) of an event
is usually more important than its magnitude (or severity), every
risk matrix used in the remainder of this course will plot impact
against likelihood, rather than magnitude against likelihood.

Risk likelihood and magnitude

• As risks move towards the top right-hand corner of the risk matrix,
they become more likely and have a greater impact. Therefore, the
risk becomes more important and immediate and effective risk
control measures need to be in place.

Managing People and Organizations
Prepared by Dr. Ayman El-Moesrawy

Lecture 1


Organizational Behavior

Course Outlines

Part 1: introduction to

organizational behavior

An overview of organizational behavior

The changing environment of organizations

Part 2: individual

behaviors and processes in


Individual characteristics

Individual values, perceptions, and reactions

Motivating behavior

Motivating behavior with work and rewards

Part 3. Social and group

processes in organizations

Groups and teams

Decision making and problem solving


Managing conflict and negotiating

Part 4. Leadership and influence

processes in organizations

Traditional leadership approaches

Contemporary views of leadership in organizations

Power, influence, and politics

Part 5. Organizational processes

and characteristics

Organizational structure and design

Organizational culture

Course Outline


An Overview of Organizational Behavior

Outcomes of the chapter:

❑ Define the organizational behavior and describe how it impacts both personal; and organizational


❑ Identify the basic management functions and essential skills that compromise the management

process and relate them to organizational behavior.

❑ Describe the strategic context of organizational behavior and discuss the relationships between

strategy and organizational behavior.

❑ Identify and describe contextual perspectives on organizational behavior.

❑ Describe the role of organizational behavior in management for effectiveness and discuss the role

of research in organizational behavior.


Managing Growth at Google

– Google search engine was created at 1998 by Larry Page and Sergey Brin with the goal

of making world’s information available to every one.

– The founders of google realized that google explosive growth needed to be closely

monitored and that its employees needed to continue feeling like an important part of the


– The founders wanted to make google an engaging place to work and set out to design the

organization and its culture in away that would appeal to its current and future


Imagine that: the founders of google asked you for advice during the early days of

google what advice would you give them about the roles of its people in its future success and

how to setup the company to maximize the employees innovations and loyalty.

What’s organizational behavior :

Organizational behavior (OB) is a study of:

– Human behavior in the organizational settings.

– The interface between the human behavior and


– Organization itself.


Organizational behavior (OB): is the study of how people behave in organizational settings. Its

principles are applied with the goal of making organizations and therefore the people in them work more

effectively together.

Organizational behavior (OB): research can specialize in individual behavior within the organization,

how groups work together, how the organization itself behaves, and the way all of those are interconnected

and impact one another.

The Nature of Organizational Behavior :

Figure 1.1

The field of organizational behavior attempt to

understand human behavior in organizational settings,

the organization itself, and the individual organizations

interface. As illustrated here this area is highly

interrelated. Thus although its possible to focus on only

one of these area at a time, complete understanding of

organizational behavior requires acknowledge of three



The Nature of Organizational Behavior :

– Each individual brings the organizations a unique set of personal characteristics, unique

personal background and set of experience from other organizations.

– But the individual don’t work in isolation. They come in contact with other people and

with organizations in a variety of ways.

– An organization of course exist before a particular person joins it and continues to exist

after he or she leave. The organizational it self represents a crucial third perspective

from which to view organizational behavior.


How organizational behavior impacts personal success?

You might think I don’t know any organizational behavior why this topic important?

– Understanding why people behave in their organization and why they do what they do.

– OB gives any one the knowledge and the tools they need to be effective at any

organizational level.

– The study of OB can greatly clarify the factors that affect how manager manage.

– Hence the field attempts to describe the complex human context of organization, and

define opportunities, problems, challenges, and issues associated with that realm.


Home-Depot Case Study:

Summery of turnover in Home-Depot:

– The individuals don’t work in isolations they come in contact with other people and with the

organization in different ways (they have different needs and cultures).

– Points of contact include coworkers, managers, formal polices and procedures in organization.

– In additions the individual overtime change as a result of a function the individual experience and

maturity as well as through work experiences and organizational developments.

– So the organization is affected by the absence and eventual absence of individuals.

– Clearly then managers must also consider how the individual and organization interact.


Summery of the case study

The consultant who studying turnover at the Home-Depot came over to:

– The necessity of the orientation procedure and the initial training of the newcomer.

– Needs to study the culture and structure of Home-Depot.

– Needs to understand factors such as firms’ performance and reward systems.

– decision making techniques and communication pattern.

Conclusion of this case: the field of organizational behavior interacts and explains many of the

complicated factors to make the managers understand some of the dynamics of how individuals

are introduced and interact with the bro ader organizational context. And also provide unique and

important opportunities to enhance personal and organizational effectiveness.


Global Mindset

– A global mindset reflects your ability to influence people, groups, and organizations from

different backgrounds and culture.

– Multinational companies’ ability to create globally integrated systems depends on their:

1- Ability to get employees, managers, and executives able to understand and adapt to

the realities of globalization economies.

2- Ability to integrate talent from many parts of the world faster and more effectively

than other competitors.


Case study (HSBC):

– Because global mindset is learned, experiences can

influence it in a positive and a negative manner.

– Every year the financial services of HSBC send

promising new hires and managers in long-term

business experiences abroad to build a cohort

international officers, the locations include western

countries as well as Saudi Arabia , Indonesia, and


– To make career at HSBC manager must perform this


– This enables HSBC to continuous supply of globally

minded managers capable of cross-broader learning.


Understand Yourself


How organizational behavior impacts organizational success?

– By applying OB knowledge in the organization about individuals and groups the effect on the

organization structures on workers behavior with the conditions can be created that make the

organization more effective, and perform well.

– By listening to the employees, recognizing their work, building trust, and behave ethically,

managers have boosted such performance measures as operating earning and return on


– In addition to financial performance and job satisfaction, OB influences the rate of turnover

and absenteeism which can be worth of millions of dollars to organizations.


Summery of Why study OB?

▪ Studying OB can help you in :

✓ Become a better employee

✓ Become a better manager

✓ Understand why people behave and why the do what they do.

✓ Help you focus on developing a global mindset.

▪ Organizations that successfully implement OB principles have

✓ Motivated, engaged employees whose goals align with business strategy.

✓ Strong leadership and direction.

✓ Better bottom lines


The managerial Context of OB?

The Managerial Contexts of OB can be viewed from perspective of:

1- Basic Management Functions,

(Planning, Organizing , Leading and Controlling)

2- Critical Management Skills,

( Technical , Interpersonal , Conceptual, and Diagnostic)

3- Overall Human Resources Management.


1- Functions of Management:

Planning Determining an organization’s desired future position and best means of getting


Organizing Designing jobs, grouping jobs into units, and establishing patterns of authority

between jobs and units.

Leading Getting the organizations’ members to work together toward the organizations’


Controlling Monitoring and correcting the actions of the organization and its members to keep

them directed toward their goal.


An Overview of Organizational BehaviorCHAPTER 1

1- Functions of Management:


• Deciding in advance :

✓ What to do

✓ How to do

✓ When to do

✓ Who is going to do it

• Bridges a gap between where we are today and where we want to reach.

• Sets the goals of the organization.

1- Functions of Management:


• It is the basic function of management.

• deciding in advance the most appropriate course of actions for achievement of pre-determined


• Thus, planning is a systematic thinking about ways & means for accomplishment of pre-

determined goals.

• Planning is necessary to ensure proper utilization of human & non-human resources. It is an

intellectual activity and it also helps in avoiding confusion, and uncertainties.


1- Functions of Management:


• It is the process of bringing together physical, financial and human resources and developing

productive relationship amongst them for achievement of organizations’ goals.

• According to Henry Fayol, “To organize a business is to provide it with everything useful or its

functioning i.e. raw material, tools, capital and personnel’s”. To organize a business involves

determining & providing human and non-human resources to the organizational structure.


1- Functions of Management:


• Establishing the framework of working:

– How many units or sub-units or departments are needed.

– How many posts or designations are needed in each department.

– How to distribute authority and responsibility among employees

Once these decisions are taken, organizational structure gets set up.

• Organizing as a process involves:

✓ Identification of activities.

✓ Classification of grouping of activities.

✓ Assignment of duties.

✓ Delegation of authority and creation of responsibility.

✓ Coordinating authority and responsibility relationships.


1- Functions of Management:


• Giving direction or instruction to employees to get the job done.

• Leadership qualities are required.

• Motivating employees by providing different types of incentives.

• Communicating with them at regular intervals.

• It is that part of managerial function which moves the organizational methods to work efficiently

for achievement of organizational purposes. It is considered life-spark of the enterprise which

sets it in motion of the action of people because planning, organizing and staffing are the more

preparations for doing the work.

• Leading is that inert-personnel aspect of management which deals directly with influencing,

guiding, supervising, motivating subordinate for the achievement of organizational goals.


1- Functions of Management:


• Supervision- implies overseeing the work of subordinates by their superiors. It is the act of

watching & directing work & workers.

• Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work.

Positive, negative, incentives may be used for this purpose.

• Leadership- may be defined as a process by which manager guides and influences the work of

subordinates in desired direction.

• Communications- is the process of information, experience, opinion etc. from one person to

another. It is a bridge of understanding


1- Functions of Management:


• Matching actual performance with the planed goal.

• If problem, tries to find out the reasons of deviation.

• Suggesting corrective measures come on the path of the plan.

• It implies measurement of accomplishment against the standards and correction of deviation if

any to ensure achievement of organizational goals.

• The purpose of controlling is to ensure that everything occurs in conformities with the standards.

• An efficient system of control helps to predict deviations before they actually occur.

• According to Theo Haimann, “Controlling is the process of checking whether or not proper

progress is being made towards the objectives and goals and acting if necessary, to correct any



1- Functions of Management:


• Therefore controlling has following steps:

✓ Establishment of standard performance.

✓ Measurement of actual performance.

✓ Comparison of actual performance with the standards and finding out deviation if any.

✓ Corrective action.


1- Functions of Management:

Figure 1.2

Managers engage in four basic functions planning,

organizing, leading and controlling. These functions are

applied to human , financial, physical, and information

resources with ultimate purpose of efficiently and

effectively attaining organizational goals.


2- Critical Managerial Skills:


Skills necessary to accomplish specific tasks within the organizations.


Ability to effectively communicate with, understand, and motivate
individuals and groups.


Ability to think in abstract


Ability to understand cause-and-effect relationships and to recognize the
optimal solutions to the problem.


2- Critical Managerial Skills:

Technical skills:

Technical skills involve skills that give the managers the ability and the knowledge to use a variety

of techniques to achieve their objectives. These skills not only involve operating machines and

software, production tools, and pieces of equipment but also the skills needed to boost sales,

design different types of products and services, and market the services and the products.


– The chairman and CEO of Xerox cooperation, Ursula Burns, started her career as mechanical


– Manager with strong technical skills include Rex Tillerson (CEO of EXXON Mobil ) who

stared his career as production engineer.


2- Critical Managerial Skills:

Interpersonal skills:

The human or the interpersonal skills are the skills that present the managers’ ability to interact,

work or relate effectively with people. These skills enable the managers to make use of human

potential in the company and motivate the employees for better results.

Examples :

– Howard Schultz is the CEO of Starbucks who is able to relate to employee by demonstrating

respect and dignity. Schultz remains committed to providing health care benefits despite rising

health care costs and has created educational opportunities for Starbucks partner. These qualities

inspired others through out the organizations and make them work hard to help Starbucks reach its



2- Critical Managerial Skills:

Conceptual skills:

These involve the skills of the managers present in terms of the knowledge and ability for abstract

thinking and formulating ideas. The manager is able to see an entire concept, analyze and diagnose

a problem, and find creative solutions. This helps the manager to effectively predict hurdles their

department or the business as a whole may face (big picture).

Examples :

– After Steve Woznick , and Steve Jobs built their own small computer for their design in garage,

Woznick essentially saw new toy they could be tinker with. That should start a company to sell

computer, the result ? Apple. In subsequent years, Jobs also used his conceptual skills to identify

to potential in digital media technology leading to the introduction of such product like iPad.


2- Critical Managerial Skills:

Diagnostic skills:

Diagnostic skills go almost hand-in-hand with the conceptual skills listed above. While conceptual

skills are used to better understand a problem, diagnostic skills are used to find a way to effectively

solve the problem. In this way, diagnostic skills and conceptual skills are two sides of the same

managerial coin. Of course, diagnostic skills aren’t only used to help find solutions to difficult

problems. Any issue that crops up at a workplace can be easier to deal with when a manager has

strong diagnostic skills. The key is to develop the ability to use these skills quickly and without the

need for long deliberation.

Examples :

– When Ed Whitacre was CEO of SBC he recognized that although SBC performs well in

communication market it lacked of strong brand name in business environment. SBC would buy

AT&T ( for 16 billion) after completing acquisition the company changed its name from SBC to

AT&T .


3- Human Resources Management (HRM)

▪ Human Resources Management (HRM):

– The set of organizational activities directed at attracting, developing, and maintaining an

active workforce.

▪ Questions OB helps HR managers to answer

1- which applicants should be hired ?

2- which rewards will be motivating than others?


3- Human Resources Management (HRM)

Human resource management can be defined as – “

employing people, developing & utilizing their

resources, maintaining and compensating their

services in tune with the job and organizational



3- Human Resources Management (HRM)


3- Human Resources Management (HRM)

Nature of HRM:

▪ Inherent part of management- selecting people, training, motivating, appraising their performance

for improving their quality.

▪ Pervasive function-present in all levels of mg in an organization

▪ Action oriented-solve problem through rational(balanced) policies rather than record keeping

▪ People oriented-HRM is all about people at work. Assign jobs, produce results, reward, motivate

them towards improvements in productivity

▪ Future oriented- Effective HRM helps organization meet its goals

▪ Development oriented-HRM develops full potential of employees through reward, training, job



3- Human Resources Management (HRM)

Nature of HRM:

▪ Integrating mechanism: HRM maintains cordial relationship between people working at various

levels in organization.

▪ Comprehensive function: Workforce signifies people working at all levels, HRM differs with

form & shape but the basic objective of effective utilization of human resource remains the same.

▪ Continuous function: HRM is not a one shot deal it requires constant awareness and alertness of

human relations in every day operation.

▪ Based on human relation: Every person has different need, perception and expectations. The

manger should give due attention to these factors.


3- Human Resources Management (HRM)


▪ Recent years announcement by Walmart. In early of 2015 the firm began giving pay raises to

500,000$ workers. At the same time the company indicated that it was changing the method it

to hire and train new employees. The managers expect that the higher wags and the new HR

practices will enable the company to better hire new employees and retain the existing one.

▪ Hence this significant and expense decision by Walmart had its origin in theories and

researches from OB and will be implemented by HRM


The strategic context of organizational behavior:

▪ Successful business strategy are grounded in creating and maintaining sustainable competitive

advantages, which exists any time an organization has an edge over rivals in attracting

customers and defending it self against competitions.

▪ The effective management of people is the key to the creation of a competitive advantage and

business strategy execution.

▪ As former of General electric CEO “ We now know where limitless of productivity comes

from. It comes from challenged, empowered, rewarded team of people” which is related to the

relation between management and OB.


The strategic context of organizational behavior:

Sources of competitive advantages:

Competitive advantages is any thing that gives a firm an edge over rivals in attracting customers

and defending it self against competitions.

▪ Sources of competitive advantages as following:


The strategic context of organizational behavior:

Types of Business strategies:

There are three primary business strategies are :

1- Cost Leadership: Striving to be the lowest cost producer

for a particular level of quality. Which makes completive

advantage of operational excellence ( Maximizing the

efficiency of manufacturing or developing the product to

minimize cost”

2- Differentiations: developing a product or services that

have unique characteristics than the other competitors.

3- Specifications: focusing on the production of a very

limited range of products or services in order to gain

maximum productivity, expertise and leadership in the

targeted field. Companies that specialize say they get a better

return on investment.


Contextual Perspective of Organizational Behaviors

A history :

▪ First formal study of OB (1890’s), following the

industrial relations movement by Adam Smith.

▪ 1890’s Fredrik Taylor developed OB on the belief

that productivity is maximized when organizations

are rationalized with precise sets of instructions

based on time-and-motions studies. Their idea

known as scientific management


Contextual Perspective of Organizational Behaviors A history :

Scientific management Guiding principles:

1- Replace rule-of-thump work methods with methods based on scientifically studying the task

using time-and-motion studies.

2- Scientifically select, train, and develop all workers rather than leaving them to passively train


3- Managers provide detailed instructions and supervision to workers to ensure that they are

following the scientifically developed method.

4- Divide work nearly equally between workers. Managers should apply scientific management

principles to planning the work, and workers should actually perform tasks.


Contextual Perspective of Organizational Behaviors A history :

▪ Human relations movement : Treats workers’ orientations, values, and feelings as important part of

organizational dynamic and performance.

▪ Organization as open system : ( system : a set of interrelated elements functionating as whole)

– The theory of the system was development in the physical science but it was transferred to

management science.

– According to this perspective an organization system receives four kinds of inputs from its

environment (material, human, financial, and information). The organization managers combine and

transform these inputs and return them to the environment in the form of product or services. Then the

systems receives feedback from the environments regarding these output.


The systems Approach of Organizations

Figure 1.3

The systems approach of organizations provides a useful

framework for understanding how elements of an

organization interact among themselves and with their

environment. Various inputs are transformed into

different outputs, with important feedback from the

environment. If managers do not understand these

interrelations, they may tend to ignore their environment

or overlook important interrelationships within



Situational Versus Universal Approach of Organizations

Figure 1.4


Managing for Effectiveness:

Effectiveness in Management refers to the capability of the management to achieve the desired

targets in the specified time. It is concerned with doing what is right or what should be done. On

the other hand, efficiency refers to doing the task correctly, timely and at minimum possible cost.

•Effectiveness Goal achievement Doing the right thing!

•Efficiency Level of resources used to achieve goals Doing things right!

Managers’ goals

▪ Enhance behaviors and attitudes.

▪ Promote citizenship.

▪ Minimize dysfunctional behaviors

▪ Drive strategic execution


Managing for Effectiveness:

1- Managers’ goals

Goals should be:

Goals must be : – clearly- identifiable – measurable – time bound

Manager should consider:

▪ Enhance behaviors and attitudes.

▪ Promote citizenship.

▪ Minimize dysfunctional behaviors

▪ Drive strategic execution

▪ Effectiveness is the ability to excel at one or more goals

▪ The goal attainment states that an organization effectiveness must be appraised in terms of the

accomplishment of its end goals based on the identification of goals and the achievement of

those goals


Managing for Effectiveness:

2- Individual behaviors

▪ Productivity

– Narrow measure of efficiency. Number of products or services created per unit of input

▪ Performance

– Broader concept made up of all work-related behaviors

▪ Commitment

– The degree to which an employee considers himself or herself a true member of the

organizations. Overlooks minor sources of dissatisfaction, and intends to stay with the



Managing for Effectiveness:

3- Organizational citizenship

Behavior of individuals that makes a positive overall contribution to the organization

▪ Examples:

– Willingness to train new hires

– Works late/overtime

– Good attendance

– Represents the organization well

– Personal values consistent with the organizations


Managing for Effectiveness:

4- Dysfunctional behaviors

Behaviors that detract from, rather than contribute to, organization performance.

▪ Examples:

– Absenteeism


– theft, sabotage

– Sexual and Racial Harassment

– Politicized behavior (spreading rumors, etc.)

– Incivility, rudeness

– Bullying and workplace violence


Managing for Effectiveness:

5- Quality of information:

How do we know what we know?

▪ “common” sense and institution and are often wrong-examples where one thing doesn’t

necessary lead the other

– Goals, confidence and performance

– Satisfaction and productivity

– Cohesion and performance

– Reward and motivation


Managing for Effectiveness:

5- The scientific method :

• Intuition : Many people think that they good understanding of the others from observations and

they can motivate them to do certain job by using observation only but this was right in the past .

▪ A theory is a collection of verbal and symbolic that specify how and why variables are related, and

the conditions under which they should and should not relate.

▪ A hypothesis is a written prediction specifying expected relationships between certain variables.

▪ The Independent variable is the variable that is predicted and not affected by something else.

▪ The dependent variable is variable predicted to be affected by something else.

▪ Correlations: reflects the size and strength of the statistical relationships between two variable.


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