Graeme Martin Managing People and Organizations in Changing Contexts B
Contents About the author Preface Acknowledgements Chapter I An introduction to managing people in changing contexts Learning objectives Understanding management 2 Management as a set of universal truths Stability and change in models of management 9 the book Learning summary 21 Review questions References Chapter 2 The nature of management,managers and their work 9 Learning objectives 29 A framework for understanding managers and their work A framework for understanding the well-rounded manager 34 The well-rounded manager 52 A model of effective management Learning summary 86 Review questions 62 References Chapter 3 Managing in the individual-organizational context 67 Learning objectives 6 Introduction
Contents About the author ix Preface xi Acknowledgements xiii Chapter 1 An introduction to managing people in changing contexts 1 Learning objectives 1 Understanding management 2 Management as a set of universal truths 4 Stability and change in models of management 9 Explaining changing mindsets 12 A framework for the book 18 Learning summary 21 Review questions 22 References 27 Chapter 2 The nature of management, managers and their work 29 Learning objectives 29 A framework for understanding managers and their work 30 A framework for understanding the well-rounded manager 34 The well-rounded manager 52 A model of effective management 58 Learning summary 61 Review questions 62 References 64 Chapter 3 Managing in the individual–organizational context 67 Learning objectives 67 Introduction 68 v
Contents Leadership in organizations Learning summary Review questions 115 References 118 Chapter 4 Managing in the organizational context 121 Learning objectives Introduction Organizational structures 22 New approaches to organizational design 43 Tests of effective organizational design 15 Learning summary Review questions References 5155 Chapter 5 Managing in an international context 157 Learning obiectives 157 the business National cultural values Institutions and business systems 69 Managing people in an international context 197 Developing international managers 200 Learning summary Review questions References 0 Chapter 6 The corporate context,organizations and managing people 215 Learning obiectives 215 Introduction to corporate reputation,identity,brands and people ma agement Defining and explaining'corporateness' 8 Connecting corporate branding,reputation and identity to people management 231 Modelling the relationship between people management identity,brands and reputation Learning summary Review questions 24412512 References 255
The psychological contract 72 Managing psychological contracts 79 Leadership in organizations 104 Learning summary 113 Review questions 115 References 118 Chapter 4 Managing in the organizational context 121 Learning objectives 121 Introduction 121 Organizational structures 127 New approaches to organizational design 143 Tests of effective organizational design 150 Learning summary 153 Review questions 153 References 155 Chapter 5 Managing in an international context 157 Learning objectives 157 Introduction 158 National differences in the business environment 161 National cultural values 169 Institutions and business systems 183 Managing people in an international context 197 Developing international managers 200 Learning summary 208 Review questions 209 References 211 Chapter 6 The corporate context, organizations and managing people 215 Learning objectives 215 Introduction to corporate reputation, identity, brands and people management 216 Defining and explaining ‘corporateness’ 220 Connecting corporate branding, reputation and identity to people management 231 Modelling the relationship between people management, identity, brands and reputation 244 Learning summary 251 Review questions 253 References 255 vi Contents
Contents Chapter 7 The knowledge context,organizations and managing people 259 Learning objectives 259 Understanding the nature of knowledge,its strategic role and impact on organizations and people 260 The knowledge-based economy 267 Knowledge-based enterprises 271 Knowledge creation,transfer and utilization 2 mages of knowled 8品 Learning summary 300 Review questions 301 References 303 Chapter 8 The technological context,organizations and managing people 307 Learning obiectives 307 Understanding the nature of technological change ship with 308 a combination of 'hardware and software 310 Developing a framework for exploring the relationship between technology and human resource management 316 d managing people Review questions References 361 Chapter 9 Managing organizational change 365 Learning objectives 365 oitoiorgntaiondldnre ction 365 Changing organizational cultures Lessons for successful organizational change 394 Learning summary 8 Appendix I:Answers to review questions 0s Index 415
Chapter 7 The knowledge context, organizations and managing people 259 Learning objectives 259 Understanding the nature of knowledge, its strategic role and impact on organizations and people 260 The knowledge-based economy 267 Knowledge-based enterprises 271 Knowledge creation, transfer and utilization 275 Images of knowledge and organization 282 The nature of intellectual capital 296 Learning summary 300 Review questions 301 References 303 Chapter 8 The technological context, organizations and managing people 307 Learning objectives 307 Understanding the nature of technological change and its relationship with managing people 308 Defining technologies and new technologies: a combination of ‘hardware and software’ 310 Developing a framework for exploring the relationship between technology and human resource management 316 New technologies and managing people 338 Learning summary 358 Review questions 359 References 361 Chapter 9 Managing organizational change 365 Learning objectives 365 Introduction 365 Models of organizational change 369 Changing organizational cultures 384 Lessons for successful organizational change 394 Learning summary 398 Review questions 399 References 401 Appendix 1: Answers to review questions 405 Index 415 Contents vii
About the author Professor Graeme Martin is based at Edinburgh Business School, Heriot Watt University.He is also Senior Research Fellow at the University of Glasgow's School of Business and Management,and Director of the Centre for Reputation Management through People (CRMP).He holds visiting appointments at the University of Colorado in Denver,Ca Foscari University in Venice,the University of Technology in Sydney and Blekinge Institute of Technology in Sweden. He has published many refereed journal articles,book chapters reports and a book on human resource management,organizational change and international human resource management.Graeme researches into reputation management and HR,the links between new technologies and people management,including e-learning,and the future role ofsenior HR specialists.He is a member of the Advisory Board for the Scottish Academy of Health Policy and Management and consults regularly for a range of organizations in the public and private sectors in the UK. ix
About the author Professor Graeme Martin is based at Edinburgh Business School, Heriot Watt University. He is also Senior Research Fellow at the University of Glasgow’s School of Business and Management, and Director of the Centre for Reputation Management through People (CRMP). He holds visiting appointments at the University of Colorado in Denver, Cà Foscari University in Venice, the University of Technology in Sydney and Blekinge Institute of Technology in Sweden. He has published many refereed journal articles, book chapters, reports and a book on human resource management, organizational change and international human resource management. Graeme researches into reputation management and HR, the links between new technologies and people management, including e-learning, and the future role of senior HR specialists. He is a member of the Advisory Board for the Scottish Academy of Health Policy and Management and consults regularly for a range of organizations in the public and private sectors in the UK. ix
Preface This book has been written to help experienced managers and those aspiring to a career in management understand and deal with the problems and opportunities they may face in managing people and organizations in contemporary contexts.It has grown first of all from material originally prepared for a distance learning course on the spe cialist masters programmes and MBA programme of Edinburgh Business School,Heriot Watt University.Second,it also draws heavily on my research,mostly with my good friends at the University of Glasgow,into management,HRM,organizational behaviour and change.Finally.I have incorporated insights from more than thirty years teaching,consulting and managing people in the UK and a num- ber of countries in Europe,North America and Asia. The aim of the book is to fill a gap between conventional postgrad uate and executive texts on organizational behaviour and human resource management.Arguably the former don't focus enough on management and what it is required of managers-indeed some are almost anti-management-while the latter are too specialist for the needs of people occupying more generalist roles.Moreover,the major- ity of these texts are a little light on dealing with the contemporary and changing contexts in which management is performed,often fail- ing to make the connections with major international economic social and technological developments,the rise of creative and knowl- edge-based industries,intangible assets as the basis of competition, and the strategic concerns of organizations in the private,public and voluntary sectors of modern economies.My hope is that readers will find this book relevant to their existing or potential work as managers, regardless of where they live,helping them understand and apply some key concepts in business and management to their everyday working lives and their longer-term thinking about the shape and health of their organizations
Preface This book has been written to help experienced managers and those aspiring to a career in management understand and deal with the problems and opportunities they may face in managing people and organizations in contemporary contexts. It has grown first of all from material originally prepared for a distance learning course on the specialist masters programmes and MBA programme of Edinburgh Business School, Heriot Watt University. Second, it also draws heavily on my research, mostly with my good friends at the University of Glasgow, into management, HRM, organizational behaviour and change. Finally, I have incorporated insights from more than thirty years teaching, consulting and managing people in the UK and a number of countries in Europe, North America and Asia. The aim of the book is to fill a gap between conventional postgraduate and executive texts on organizational behaviour and human resource management. Arguably the former don’t focus enough on management and what it is required of managers – indeed some are almost anti-management – while the latter are too specialist for the needs of people occupying more generalist roles. Moreover, the majority of these texts are a little light on dealing with the contemporary and changing contexts in which management is performed, often failing to make the connections with major international economic, social and technological developments, the rise of creative and knowledge-based industries, intangible assets as the basis of competition, and the strategic concerns of organizations in the private, public and voluntary sectors of modern economies. My hope is that readers will find this book relevant to their existing or potential work as managers, regardless of where they live, helping them understand and apply some key concepts in business and management to their everyday working lives and their longer-term thinking about the shape and health of their organizations. xi
Preface The material in the book is based on a wide range of literature in dis ciplines and sub-disciplines that contribute to business and management including organizational behaviour and organizational theory,manage ment theory,human resource management,information systems,knowl edge management,operations management,marketing,economics, international management,business history and strategic management There are also some chapters that are intended to be innovative in bring ing together bodies of knowledge that haven't been integrated before. particularly in the fields of corporate reputation,branding and people management,and technology and people management.These chapters are based on original work for the UK Chartered Institute of Personnel and Development and speak directly to the future roles of HR specialists and line managers.It has been suggested by reviewers that this eclecti- cism and forward vision are part of the book's strengths.However,I hope that specialists in some of these areas may forgive the inevitable lack of depth compared to that of their own works;this is always a danger of inte- gration and attempting to move into new fields in business and manage ment.Yet,the work of managers rests upon being able to integrate ideas and techniques from various disciplines,and books that help them along the way should be of value in this regard. I have written in the first person to make the book more accessible and to avoid the spurious objectivity that is sometimes associated with writing in the third person.Again I hope this will not offend my academic col- leagues because it has not been written with them in mind.It is written for managers and students,many of whom have suggested that writing in such a style helps put a face behind the text,so long as it is not too intru- sive.The book is also filled with examples,short cases and exercises,and longer cases from different industrial and national contexts.Lecturers and tutors can access additional cases and suggested answers to the exercises and case studies in the book from a companion website (www.textbooks.elsevier.com).These have all been tried and tested in my own teaching in the UK,USA,continental Europe,Asia and Australia and might be helpful in stimulating learning in vour classrooms Students who seek feedback on how well they understand and can apply the material in the book may want to use the review questions at the end of each chapter,answers to which are supplied in the book.Though the questions are of the multiple choice and true-false variety,often decried by educators as irrelevant to deep learning,a substantial proportion of these have been designed to test not only depth of understanding but also application.I'm grateful to my colleague,Fiona Lennon,for help with these. Graeme Martin
The material in the book is based on a wide range of literature in disciplines and sub-disciplines that contribute to business and management, including organizational behaviour and organizational theory, management theory, human resource management, information systems, knowledge management, operations management, marketing, economics, international management, business history and strategic management. There are also some chapters that are intended to be innovative in bringing together bodies of knowledge that haven’t been integrated before, particularly in the fields of corporate reputation, branding and people management, and technology and people management. These chapters are based on original work for the UK Chartered Institute of Personnel and Development and speak directly to the future roles of HR specialists and line managers. It has been suggested by reviewers that this eclecticism and forward vision are part of the book’s strengths. However, I hope that specialists in some of these areas may forgive the inevitable lack of depth compared to that of their own works; this is always a danger of integration and attempting to move into new fields in business and management. Yet, the work of managers rests upon being able to integrate ideas and techniques from various disciplines, and books that help them along the way should be of value in this regard. I have written in the first person to make the book more accessible and to avoid the spurious objectivity that is sometimes associated with writing in the third person. Again I hope this will not offend my academic colleagues because it has not been written with them in mind. It is written for managers and students, many of whom have suggested that writing in such a style helps put a face behind the text, so long as it is not too intrusive. The book is also filled with examples, short cases and exercises, and longer cases from different industrial and national contexts. Lecturers and tutors can access additional cases and suggested answers to the exercises and case studies in the book from a companion website (www.textbooks.elsevier.com). These have all been tried and tested in my own teaching in the UK, USA, continental Europe, Asia and Australia and might be helpful in stimulating learning in your classrooms. Students who seek feedback on how well they understand and can apply the material in the book may want to use the review questions at the end of each chapter, answers to which are supplied in the book. Though the questions are of the multiple choice and true-false variety, often decried by educators as irrelevant to deep learning, a substantial proportion of these have been designed to test not only depth of understanding but also application. I’m grateful to my colleague, Fiona Lennon, for help with these. Graeme Martin xii Preface
Acknowledgements Any book is the outcome of the work of a number of people,not solely the author.This one is no different,so I would like to thank those col leagues who have played an important hand in helping me produce it. First I'm grateful to Ros Doig,my former research assistant,and to Fiona Lennon for her assistance in preparing the review questions and other material for the book.I would like to thank Edinburgh Business School at Heriot Watt University for giving me permission to use the material in this book,which was initially written for their distance learning course programme.Alex Scott,the Deputy Director,was a particularly helpful and insightful critical reader,and good supporter of this project,whilst Charlie Ritchie was an excellent proofreader. along with the staff at CapDM.I would also like to thank the team at Butterworth-Heinemann for championing this book so efficiently and pleasantly,especially Maggie Smith,who has been an excellent com- missioning editor,and Claire Hutchins. You will see numerous references in the book to research conducted with close colleagues at the University of Glasgow,particularly Phil Beaumont and ludy Pate.i owe these friends an enormous debt I'm also extremely grateful to my other,close international friends-Thomas Clarke in Sydney,Herman Aguinas in Denver,Anna Commachio in Venice,Hong Zhang in Beijing,and Lesley Appelgren and Anders Nilsson in Ronneby,Sweden-for their extremely helpful comments endorsement of the book and for allowing me to use some of the mate- rial with their graduate students.Finally,I want to dedicate this book to my family,Vanessa,Rhiannon,Alayna,Chris and Roz,for their support and patience;also my mother-in-law-yes,my mother-in-law-Christine Smith for her critical reading and endless child-minding. xi带
Acknowledgements Any book is the outcome of the work of a number of people, not solely the author. This one is no different, so I would like to thank those colleagues who have played an important hand in helping me produce it. First I’m grateful to Ros Doig, my former research assistant, and to Fiona Lennon for her assistance in preparing the review questions and other material for the book. I would like to thank Edinburgh Business School at Heriot Watt University for giving me permission to use the material in this book, which was initially written for their distance learning course programme. Alex Scott, the Deputy Director, was a particularly helpful and insightful critical reader, and good supporter of this project, whilst Charlie Ritchie was an excellent proofreader, along with the staff at CapDM. I would also like to thank the team at Butterworth-Heinemann for championing this book so efficiently and pleasantly, especially Maggie Smith, who has been an excellent commissioning editor, and Claire Hutchins. You will see numerous references in the book to research conducted with close colleagues at the University of Glasgow, particularly Phil Beaumont and Judy Pate. I owe these friends an enormous debt. I’m also extremely grateful to my other, close international friends – Thomas Clarke in Sydney, Herman Aguinas in Denver, Anna Commachio in Venice, Hong Zhang in Beijing, and Lesley Appelgren and Anders Nilsson in Ronneby, Sweden – for their extremely helpful comments, endorsement of the book and for allowing me to use some of the material with their graduate students. Finally, I want to dedicate this book to my family, Vanessa, Rhiannon, Alayna, Chris and Roz, for their support and patience; also my mother-in-law – yes, my mother-in-law – Christine Smith for her critical reading and endless child-minding. xiii
The author and publishers would like to thank the following for their permission to reprint material: Helen Handfield-Jones Elements of a talent management approach Exhibit from website,www.handfieldjones.com/diagnose/index.html (accessed Feb 2005);Jay Galbraith (2002)Designing Organizations:A executive guide to strateg,structure and process,San Francisco:Jossey Bass Exhibit,page 10 The star model and Exhibit,page 15 How organiza- tion design shapes performance and culture.(Reprinted with permis- sion John Wiley and Sons Inc.);Michael Goold Andrew Cambell (2002)Designing effective organizations:How to create structure networks, Exhibit,page 250Fit drivers and good design principles'.(Reprinted with permission John Wiley and Sons Inc.);Ed Schein (1985) Organizational culture and leadership,San Francisco:Jossey Bass.Exhibit: Different levels of culture.(Reprinted with permission John Wiley and Sons Inc.):Robert S Kaplan&David P Norton (2000)The strateg- focused organization:How balanced scorecard companies thrive in the new business e vironment,MA:Harvard Business School Publishing,Exhibit 2.1,p.416 The employee-customer-service profit chain at Sears (Reprinted with permission from Harvard Business School Publishing.): Mary Jo Hatch Majken Schultz,(2001)Are the strategic stars align for your corporate brand,Harvard Business Review,February.Exhibit p.131 The corporate branding toolkit.(Reprinted with permission from Harvard Business School Publishing). Every effort has been made to contact owners of copyright material; however the author would be glad to hear from any copyright owners of material produced in this book whose copyright has unwittingh been infringed. xiv
The author and publishers would like to thank the following for their permission to reprint material: Helen Handfield-Jones Elements of a talent management approach, Exhibit from website, www.handfieldjones.com/diagnose/index.html (accessed Feb 2005); Jay Galbraith (2002) Designing Organizations: A executive guide to strategy, structure and process, San Francisco: Jossey Bass, Exhibit, page 10 The star model and Exhibit, page 15 How organization design shapes performance and culture. (Reprinted with permission John Wiley and Sons Inc.); Michael Goold & Andrew Cambell (2002) Designing effective organizations: How to create structure networks, Exhibit, page 250 ‘Fit drivers and good design principles’. (Reprinted with permission John Wiley and Sons Inc.); Ed Schein (1985) Organizational culture and leadership, San Francisco: Jossey Bass. Exhibit: Different levels of culture. (Reprinted with permission John Wiley and Sons Inc.); Robert S Kaplan & David P Norton (2000) The strategyfocused organization: How balanced scorecard companies thrive in the new business environment, MA: Harvard Business School Publishing, Exhibit 2.1, p. 416 The employee-customer-service profit chain at Sears. (Reprinted with permission from Harvard Business School Publishing.); Mary Jo Hatch & Majken Schultz, (2001) Are the strategic stars aligned for your corporate brand, Harvard Business Review, February. Exhibit p.131 The corporate branding toolkit. (Reprinted with permission from Harvard Business School Publishing). Every effort has been made to contact owners of copyright material; however the author would be glad to hear from any copyright owners of material produced in this book whose copyright has unwittingly been infringed. xiv
CHAPTER An introduction to managing people in changing contexts Learning objectives By the end of this chapter you should be able to: describe and critically evaluate some of the key ideas underly- ing the management of people in changing contexts; apply the notions of universalism and relativism to the key ideas and practice of modern management,especially to our understanding of 'best practice'; understand the importance of mindsets in management and how these influence managerial practice; understand how ideas about management change,and how the economic environment and the influence of management thinkers can cause changes in our understanding of good practice in management; critically evaluate the role of management thinkers in pro- ducing useful knowledge about management
An introduction to managing people in changing contexts 1 CHAPTER Learning objectives By the end of this chapter you should be able to: ■ describe and critically evaluate some of the key ideas underlying the management of people in changing contexts; ■ apply the notions of universalism and relativism to the key ideas and practice of modern management, especially to our understanding of ‘best practice’; ■ understand the importance of mindsets in management and how these influence managerial practice; ■ understand how ideas about management change, and how the economic environment and the influence of management thinkers can cause changes in our understanding of good practice in management; ■ critically evaluate the role of management thinkers in producing useful knowledge about management. 1