management 340 final review
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Chapter 6: Managing Human Resources 3/6/12 2:09 PM
Chapter 1
Organizations: a systematic arrangement of people brought together to accomplish a
specific purpose
Three Characteristics All Organizations Share:
o Distinct purpose/goal expressed in terms of a goal or set of goals
o People that achieve that goal or purpose
o All organizations develop a deliberate and systematic structure that defines and
limits behavior of its members.
Managers differences from Nonmanagerial Employees:
o Nonmanagerial employees are people who work directly on a job or task and have
no responsibility for overseeing work of others.
o Managers are individuals in an organization who direct and oversee the activites of
other people in the organization.
Titles Managers Have:
o Top Managers are those who are responsible for making decisions about the
direction of the organization and establishing policies that affect all organized
members.
o Middle Managers are those who are responsible for translating goals set by top
managers into specific details that lower-level managers will see get done.
o First-line Managers are supervisors responsible for directing the day-to-day activities
of Nonmanagerial employees.
What is Management?
o Management is the process of getting things done, effectively and efficiently, with
and through other people.
o Managers job is to support the people doing work (upside pyramid)
Efficiency v. Effectiveness
o Easier to be effective if you ignore efficiency
o Effectiveness is most important
Four Management Functions to *Achieving the organization’s stated purpose*:
o Planning- (French Scholar) defining goals, establishing strategy (planning), and
developing subplans to coordinate activities.
o Organizing- Determining what needs to be done, how it will be done, and who is to
do it.
o Leading – Directing and coordinating the work activities of an organization’s people.
AKA getting people to do something they otherwise would not do, and getting them
to do it.
o Controlling – Monitoring activities to ensure that they are accomplished as planned.
Manager’s roles include Leader, Liaison: coordinating the different sectors, Monitor:
knowing what is going on, and Spokesperson.
Management/Manager Roles:
o Managerial roles – specific categories of managerial actions or behaviors expected
of a manager. *Conceptual – being able to see big picture*
o Interpersonal roles – involve people and other duties that are ceremonial and
symbolic of nature. 3 interpersonal roles are figurehead, leader, and liason.
*Interpersonal skill- dealing with people*
o Informational roles involve collecting, receiving, and disseminating information. 3
informational roles include monitor, disseminator, and spokesperson. *Technical
skills are job specific knowledge and techniques needed to perform work tasks*
o Decisional roles entail making decisions or choices. 4 decisional roles are
entrepreneur, disturbance handler, resource allocator, and negotiator. *Political
skills to build power base and establish right connections*
As a person’s responsibilities increase the mix of skills changes
o First level managers
o Leading
o Organization becomes more important as does planning and controlling with more
responsibility
o As organizations get larger skills become specialized
Anthropology- study of societies, which helps us learn about human beings and their
activities
Philosophy- Inquire into the nature of things, particularly values and ethics
Ethics: figuring out how to live without harming others
Psychology: why do people do what they do
Sociology: why do others interact with others the way that they do
What do theories do?
o Explain and predict
Innovation
o Innovation means doing things differently, exploring new territory, and taking risks.
o Innovate or die.
History Module
History of Management
Those who don’t know history are condemned to repeat it –Gorge Santayana
History doesn’t repeat itself but it rhymes -Mark Twain
The renaissance began at the end of the 14th century
The pin effect, if you divide the work up, the result is each specialization, and an increase of
productivity.
The downside is that this is tedious, and people do not enjoy their work.
o Taken from Robert Smith’s Wealth of Nations, 1974
o Known as the first economic book
1812-1911
o The US got into the industrial revolution rather late
o The civil war, the production of arms and ammunition, propelled the US into the
industrial revolution
o Huge waves of immigrants helped stimulate this growth
o Factories
The supervisor and the manager negotiated the wage rate.
The supervisor would negotiate the wage rate for the mostly
immigrant work force, who could not speak English
This lead to unfair wage distributions
Frederick Taylor attempted to achieve social justice by getting everyone a
fair wage rate, using a scientific method
Taylor is unjustly hated, due to managers exploiting Taylors
technique to cheat the workers
Kurt Vonnegut
Anti-establishment
Wrote the book “Player Piano”
Described how managers exploit workers
Books name taken from the way a player piano works, a
skilled pianist plays a piece of music and a roll of paper
marks the notes. Then you can roll it back and it depresses
the keys for you
Principle argument: This technology was not only exploiting
workers it was replacing workers
Functions are what managers do. Principles are what managers should do
o Unity of command: all workers should receive commands from only one superior.
o Scalar chain: each boss reports to their own boss.
o Unity of Direction: when an employee is at work, their main direction should be to
complete company work
o Remuneration: workers must be paid fairly for their work
o Centralization: A variable, the degree to which ordinary employees are involved in
the decision making process
Centralization: authority is contained to the top of the pyramid
Decentralization: authority is spread out throughout the organization
o Stability: managers should treat employees with dignity and respect.
o Initiative: employees who are allowed to originate and carry out plans will exert
high levels of effort
o Esprit de Corps: promoting team spirit will build harmony and unity within the
organization
Hawthorne Studies
o Engineers at Bell wanted to promote efficiency
Broke workers up into
Experimental group
Control group
Found to their surprise that productivity continued to go up no matter what
they did.
Study found that productivity went up because they were being watched
Organizational/Industrial psychology
Quantitative Approach
o 1940s
o if you can’t measure it you can’t manage it
o focus is shifted from what is important to what is easy
Joseph M. Duran
o Total quality management: management philosophy devoted to continual
improvement and responding to customer needs and expectations.
o US would not listen to his philosophy, so he took his strategy to Japan, who began to
beat US manufacturers.
New management ideas are always coming up
o It’s not what you think it’s how you think
There is no one best way
Chapter 12
How Does the Communication Process Work? (7 Parts)
o The communication source or sender, encoding, the message, the channel,
decoding, the receiver, and feedback.
o Encoding – source initiates by encoding a thought. Four conditions that affect are
skill, attitudes, knowledge, and the social cultural system. Media/Plural and
Medium/Singular
o The Message – actual physical product from source that conveys some purpose.
(speaking, writing, painting, gesturing)
o The Channel – is the medium through which message travels. Formal or informal:
formal are established by organization and transmit messages that pertain to job-
related activities of members.
o Decoding – the symbols in it must be translated into a form that can be understood
by the receiver – the decoding of the message. (before message can be received to
receiver)
o Feedback – the check on how successful we have been in transferring our messages
as originally intended.
o Barrier to communication – We all have a different dictionary in our head, and
arguing semantics; extremely important.
*Noise* Sender (Purpose) > Encoding (Message) > Channel (Message) > Decoding
(Message) >Receiver > Feedback and circles back. Are written communications more effective than oral?
o Richard Draft
The richness of the medium should match the complexity of the message
Richness: information carrying capacity of the medium
Richest medium: face-2-face
2nd Richest: live lecture
3rd Richest: video chats / face time
4th Richest: telephone
5th Richest: letter
Last Richest: email spread sheet
Difficult to convey emotion in email
o If Medium is too rich : information overload
o If medium is not rich enough : ambiguity/uncertainty
Grapevine: is the unofficial way that communications take place in an organization. It’s
neither authorized nor supported by the organization, and grapevine gets information out to
organizational members as quickly as possible.
o Marvin Gay
o Origins: Civil War messages strung from trees
o Modern meaning: gossip
Rumor that human beings tend to create stories to explain what they see.
When there is lack of trust, human tendency is to create the most
unfavorable interpretation
o What is a manager to do about the grapevine?
Do not suppress it, you cant
“Don’t think of white elephants”
Monitor the grapevine, by giving limited factual information
How do nonverbal cues affect communication?
o Body language: nonverbal communication cues such as facial expressions, gestures,
and other body movements.
Actors excel at body language
“Ides of March”- George Clooney
“Steel Magnolias”- Julia Roberts
o Verbal Intonation: An emphasis given to words or phrases that conveys meaning
What barriers keep communication from being effective?
o Filtering: deliberately manipulating information to make it appear more favorable to
the receiver (bad)
o Selective Perception: receiving communications on the basis of what one selectively
sees and hears depending on his or her needs/ motivation, experience, background,
and other personal characteristics.
o Information Overload: when amount of information one has to work with exceeds
one’s processing capacity.
o Emotions: How the receiver feels when a message is received
o Language: Words have different meanings to different people. Receivers will use
their definition of words being communicated.
o Gender: How males and females react to communication may be different, and they
each have different communication style.
o National Culture: Communication differences arising from different languages that
individuals use to communicate and the national culture of which they are part of.
Jargon: technical language (Language affects communication)
o Not a bad thing if it facilitates communication within the organization
o Only bad to outsiders who cannot understand
How does gender affect communication?
o To keep gender differences from becoming persistent barriers to effective
communication requires acceptance, understanding, and a commitment to
communicate effectively with each other
o “You Just Don’t Understand”- Debora Tanning
explains how men and women differ in communication
o Which communication style is better? – neither
Why should simplified language be used?
o Incontrovertible: cannot be argued with
o Constrained emotions
Recognize when your emotions are running high
When they are, don’t communicate until you have calmed down
Be aware of what you are feeling so that you can control your emotions
Use Feedback: Check accuracy of what has been communicated—or what you heard
Simplify Language: Use words that the intended audience understands
Listen Actively: Listen for the full meaning of the message without making premature
judgment or interpretation.
Constrain Emotions: LOOK ABOVE USE FEEDBACK
Watch Nonverbal Cues: Be aware your actions speak louder than words. Keep the 2
consistent.
Emotions: The trick is to understand your own emotions. Do not suppress your emotions,
control them! (Mad, Sad, Scared, Glad, Guilty, Ashamed)
Active Listening:
o Recognizing emotions in others and reporting them
o Listening for a full meaning without making premature judgments or
interpretations.
o Listening disarms people
Empathy: ability to recognize the emotions of others, and reflecting it back to other people.
Sympathy: when you start to feel the emotion of the other person.
Three Developments in information technology appear to have had significant effect on
current managerial communication: networked computer systems, wireless capabilities,
and knowledge management systems. Networked Communication Capabilities include:
o E-mail, IM, voice mail, fax machines, electronic data interchange, and 1v1 meetings
How is technology affecting managerial communication?
o Transfer of information
Positive
Continual, Cheap, Global
Negative
Deluged with information , Waste of time
o Is technology changing human nature?
No, what is changing is our behavior underlying human behavior stays the
same
Causes us to behave differently
Knowledge Management: Cultivating a learning culture in which organizational members
systematically gather knowledge and share it with others.
o When one person gets a hold of information, they should share it to benefit the
entire organization
o The faster you and your company can learn, the greater your competitive advantage
o Learning organization:
You go up the organizational chain
If you know the root cause and you change it you get a different outcome
o Components of active listening
Concentrate Intensity (listener concentrates and tunes out misc thoughts)
Empathy (put yourself in speakers shows and adjust what you see/feel)
Acceptance (Listens objectively without judgments)
Willingness to take responsibility for completeness (listener does whatever
to get the full intended meaning from speakers communication)
o How are positive and negative feedback different?
Negative: means that there are problems with the idea, it is not criticism
Negative feedback that’s subjective can be a meaningful tool for
experiences managers.
Most likely to be accepted when it comes from a credible source or
if it’s objective
o How do you give effective feedback
Focus on specific behaviors
Keep feedback impersonal: feedback should be descriptive not judgmental
Keep feedback goal oriented: Ask whom the feedback is supposed to help, if
it’s you then hold the comment because such feedback undermines your
credibility
Keep feedback well timed
Ensure understanding: Is your feedback concise and complete enough that
the receiver clearly and fully understands your communication?
Direct Negative Feedback toward behavior that receiver can control
o Delegation: assigning authority to another person to carry out specific activities
How/When
Contingency factors in delegation:
Size of organization, importance of duty or responsibility, task
complexity, organizational culture, and quality of employee.
How do you delegate effectively?
o Clarify the assignment
o Specify employees’ range of discretion
o Allow employees to participate
o Inform others that delegation has occurred
o Establish feedback controls
Effective delegation pushes authority down vertically through the ranks of an
organization. ( Top,middle,first-line managers)
Conflict- is perceived differences resulting in interference or opposition
o Is conflict bad?
It depends on the kind of conflict
Functional
Revolves around choosing a goal and choosing a way to
achieve that goal
Dysfunctional
Personality conflict: “I just don’t like her”
Has nothing to do with helping the organization establish its
goals
Traditional View of conflict: view that all conflict is bad and must be avoided
Human relations view of conflict: view that conflict is natural and inevitable and has the
potential to be a positive force.
Interactionist view of conflict: view that some conflict is necessary for an organization to
perform effectively.
Functional conflicts: conflict that’s constructive and supports an organization’s goals
Dysfunctional conflicts: conflict that’s destructive and prevents an organization from
achieving its goals.
Task Conflict: Conflict that relates to the content and goals of work
Relationship Conflict: conflict that focuses on interpersonal relationships
Process conflict: conflict that refers to how the work gets done.
How does a manager stimulate conflict?
o Are you surrounded by “yes” people
o Are employees afraid to admit ignorance and uncertainties to you?
Conflict Management: What works and when?
o Concern for Self
o Concern for others
o Avoidance: Conflict is trial, when emotions are running high and time is needed to
cool them down.
o Forcing: You need a quick resolution on important issues that require unpopular
actions to be taken and when commitment by others to your solution is not critical.
Situation Conflict Lvl
Conflict Type Organization’s Internal characteristics
Level of organizational performance
A Low/none Dysfunctional Apathetic, lack of new ideas LowB Optimal Functional Viable, self critical, Innovative HighC High Dysfunctional Disruptive, chaotic,
uncooperativeLow
o Collaboration: Time pressures are minimal, when all parties seriously want a win-
win solution, and when the issue is too important to be compromised.
o Compromise: Conflicting parties are about equal in power, when it is desirable to
achieve a temporary solution to a complex issue, or when time pressures demand
an expedient solution.
o Accommodation: The issue under dispute isn’t that important to you or when you
want to build up credits for later issues.
Devil’s advocate: person who purposely presents arguments that run counter to those
proposed by the majority or against current practices.
Negotiation Skills:
o Distributing bargaining: negotiation under zero-sum conditions in which any gain by
one party involves a loss to the other party
o Not all negotiations are fixed sums
Integrative bargaining: negotiation in which there is at least one settlement
that involves no loss to either party.
How to Develop Effective Negotiation Skills:
o Research the individual with whom you’ll be negotiating
o Begin with positive overture (small concession)
o Address problems, not personalities
o Pay little attention to initial offers
o Emphasize win-win solutions
o Create an open and trusting climate
o If needed, be open to accepting third-party assistance
Chapter 13
What is Control and Why Is It Important?
o Control: the management function that involves monitoring activities to ensure that
they’re being accomplished as planned and correcting any significant deviations.
Comparing actual results versus desired results
o Important because controlling provides the critical link back to planning, controlling
is important because of employee empowerment, and controlling is important to
protect the organization and its assets.
Planning-Controlling Link Graph (circles with an arrow to each point)
o Planning: Goals, Objectives, Strategies, Plans
o Organizing: Structure, Human Resource Management
o Leading: Motivation, Leadership, Communication, Individual/Group behavior
o Controlling: Standards, Measurements, Comparison, Actions
What takes place as managers control
o Control Process: the three step process of measuring actual performance against a
standard, and taking managerial action to correct deviations or to address
inadequate standards
If you can identify root cause and change root cause you get result
Diversity of activities
Subjective measures
o Range of variation: the acceptable perimeters of variance between actual
performance and a standard
Decide if fixing the problem is worth the money you spend on it.
How do you correct actual performance?
o Immediate corrective action: correcting action that addresses problems at once to
get back on track
o Basic corrective action: corrective action that looks at how and why performance
deviated before correcting the source of deviation
o How do you revise the standard
Motivate people to pick a goal that is hard, but not too hard.
What should managers control?
o Feed-forward control: control that takes place before a work activity is done
Preventing a problem before it happens
o Concurrent control: control that takes place while a work activity is in progress
o Feedback control: control that takes place after a work activity is done
How do managers keep track of finances?
o The capital markets are giving the company money and want to know what they do
with it
End – Beginning + Dividends / Beginning
Are we providing a return to our investors
Economic Value Added (EVA)
o Take operating profit subtracting out the payment to the capital markets and what
is left over is economic value added
Companies need profit to grow
o Borrow it/Get it from stockholders.
o Captures a lot more than just cash flow and net income, you have to think about
what you are giving to your providers
o It is good for comparison
Ratios
o The best predictor of bankruptcy
Liquidity
Current ratio: when a company’s current ratio is going down it
means it does not have enough assets to pay its bills
(Current assets / Current liabilities)
Acid test: Tests liquidity more accurately when inventories turn over
slowly or are difficult to sell
(Current assets – inventories) / (current liabilities)
Leverage
Debt to assets: the higher the ratio, the more leveraged the
organization
(Total dept / Total assets)
Times interest earned: measures how many times the organization
is able to cover its interest expenses
(Profits before interest and taxes) / (Total interest charges)
Activity
Inventory turnover: the higher the ratio, the more efficiently
inventory assets are being used
(Sales / Inventory)
Total asset turnover: the fewer assets used to achieve a given level
of sales, the more efficiently management is using the
organization’s total assets
(Sales / Total Assets)
Profitability
Profit margin on sales: identifies the profits that are being
generated
(net profit after taxes)/(total sales)
Return on investment: Measures the efficiency of assets to generate
profits.
(net profit after taxes)/(total assets)
Management information system (MIS): A system used to provide management with
needed information on a regular basis
o Security
o Easily understood
o The difference between data and information
Information: data that has been interpreted
Every industry has its own important number
o Airplane Industry
Revenue seat miles: how much revenue is generated by each person sitting
in a seat
o Retail
Sales per square foot: major cost in retail, buy inventory on credit. Upkeep
most expensive, operations cost per square foot
Balances scorecard: a performance measurement tool that looks at more than just the
financial perspective
o How many minorities have been hired
o How much has the company given back to the community
o People want to invest in socially responsible corporations
Must controls be adjusted for cultural differences?
o Yes, if you want to be effective
o Basic means of control
Technologically advanced societies:
Indirect control devices
Standardized rules
Direct supervision
Less technologically advanced societies:
Direct supervision
Highly centralized decision making
Employee Theft: Any unauthorized taking of company property by employees for their personal use.
How to prevent theft
o Feed-forward: screening, establish policies
o Concurrent: treat employees with respect, openly communicate cost
Workplace Violence
Working conditions can trigger violence
o Treat people with dignity
o Make sure other employees treat each other with dignity
o Mental illness
Chapter 2 : What is the new economy like? How has the economy changed?
o 1980s
the U.S. economy growing and tax rates low, people had money and were
investing in the stock market, buying homes, starting their own businesses
new economic activity caused economy to expand, low inflation rates and
interest rates
“Healthy economy” prompts financial institutions to lure customers with
cheap and available money.
o 2000s
gas prices hit $4+
mortgage adjusts upward with higher monthly payments, consumers thus
took on a huge amount of debt; those on the financial edge fall
business executives taking advantage of loose government regulation and
loose credit making risky decisions
Economic crisis
Turmoil in mortgage markets spreads to businesses when broader
credit markets collapsed
Foreclosures, financial depression, a huge public debt, and wide
spread social problems from job losses have drastically changed the
economy.
All of this lead to a newfound lack of trust in big business
January 2009 trust in business dropped from 58% to 38%
What will the “new” normal be like?
o Change in the role of government on business
More government intervention, increased enforcement and oversight.
Especially in financial markets and in consumer protection
Technology and the Manager’s Job
o Technology: any equipment, tools, or operating methods that are designed to make
work more efficient
One positive aspect of this new economy
Technology has made the work of creating and delivering goods and
services more efficient and effective
Information Technology (IT) has created the ability to circumvent the
physical confines of working only in a specified organizational location
Changes how managers communicate with employees who may be working
anywhere at any time
Intranet: a private computer network that uses internet
organizational members
What is Globalization and how does it affect organizations?
Over that last couple of years there has been an explosion of companies operating almost
anywhere in the world. National borders mean little when it comes to doing business
Global village: refers to the concept of a boundary-less world where goods and services are
produced and marketed world wide
o Managers need to adapt to this new environment in order to be effective, as well as
continuing to foster an understanding of cultures, systems, and techniques that are
different from their own
What does it mean to be global?
o Organizations are considered global if they exchange goods and services with
consumers in other countries
o Using managerial and technological employee talent from other countries
Managers must be aware of immigration laws
o Financial globalization: using financial sources and resources outside its home
country
What are the different types of Global Organizations
Multinational Corporations (MNC): any type of international company that maintains
operations in multiple countries
o Became commonplace in the 1960s, initiated the rapid growth in international trade
o Multi-domestic Corporation: A type of MNC that decentralizes management and
other decisions to the local country where it’s doing business
Local employees are hired to manage the business and marketing strategies
are tailored to that country’s unique characteristics
o Global Corporation: A type of MNC that centralizes management and other
decisions in the home country
Treat the world market as an integrated whole and focus on the need for
global efficiency
Management decisions are made from headquarters in the home country
o Transnational (Borderless) Organization: A structural arrangement for global
organizations that eliminates artificial geographical borders
“We don’t want people to think we are from anyplace.”
How Do Organizations Go Global?
First, managers want to get into global market with minimal investment
o Global Sourcing (Outsourcing): purchasing materials or labor from around the world
wherever it is cheapest
Goal: take advantage of lower costs to be more competitive
Exporting: the next step in going global, making products domestically and selling them
abroad
o In addition an organization might do Importing: acquiring products made abroad
and selling them domestically
o Both require a minimal investment risk, which is why they are so popular
Licensing: An agreement primarily used by manufacturing businesses in which an
organization gives another the right, for a fee, to make or sell its products using its
technology or product specializations
Franchising: An agreement primarily used by service businesses in which an organization
gives another organization the, right for a fee, to use its name and operating methods
Once an organization has been doing business internationally for a while and has gained
experience in international markets, managers may decide to make more of a direct
investment
o Global Strategic Alliance: a partnership between an organization and a foreign
company partner(s) in which resources and knowledge and shared in developing
new products or building production facilities
Joint Venture: a specific type of strategic alliance in which the partners
agree to form a separate, independent organization for some business
purpose
Foreign Subsidiary: A direct investment in a foreign country that involves setting up a
separate and independent facility or office
o Can be managed as a multi-domestic organization (local control) or as a global
organization (centralized control)
o This arrangement involves the greatest investment
What Do Managers Need to Know About Managing in a Global Organization?
Parochialism: A narrow focus in which managers see thins only through their own eyes and
from their own perspective
o This view cannot succeed in a global village—nor is it the dominant view held today
Hofstede’s Framework: Geert Hofstede’s framework is one of the most widely referenced
approaches for analyzing cultural variations.
o Power distance (degree of power in institutions distributed unequally)
o Individualism versus collectivism
o Achievement versus nurturing (ach: value on money and comp. imp; nurt.: value
rela. And show sensitivity to welfare of others)
o Uncertainty avoidance (prefer structed over unstuct. Situations)
o Long-term versus short-term orientation (long: future and value thrift and
persistence; short: value past and present and respect for tradition and fulfilling
social oblig.)
Global Leadership and Organizational Behavior Effectiveness (GLOBE): A program that
studies cross-cultural leadership behaviors
o Assertiveness (encourages people to be tough and competitive)
o Future orientation (encourages & rewards future behavior (planning, investing in
future, delaying gratification)
o Gender differences (max gender role differences)
o Uncertainty avoidance (society’s reliance on social norms and procedures to
alleviate the unpredictability of future events)
o Power Difference (members of soc expect power to be unequally shared)
o Individualism/collectivism (encouraged to be integrated into groups w/in orgs and
soc)
o In-group collectivism (members of soc take pride in membership in small groups
[family, close friends, and orgs] in which they are employed)
o Performance Orientation (soc encourages & rewards group members for
performance improvement and excellence)
o Humane Orientation (soc encourages & rewards indiv.s for being fair and generous)
What Does Society Expect from Organization and Managers?
Green Management: when managers recognize and consider the impact of their
organization and its practices on the natural environment
How Can Organizations Demonstrate Socially Responsible Actions?
Social Responsibility: a business firm’s intentions, beyond its legal and economic
obligations, to do the right things and act in a ways that are good for society
o Views business as a moral agent
Social Obligation: when a business firm engages in social actions because of its obligation to
meet certain economic and legal responsibilities
o Does the minimum the law requires
Social Responsiveness: when a business firm engages in social actions in response to some
popular social need
How Can Managers Become More Ethical?
Ethics: a set of rules or principles that defines right and wrong conduct.
Code of Ethics: a formal document that states an organization’s primary values and the
ethical rules it expects managers and non-managerial employees to follow
o Utilitarian View of Ethics: a situation in which decisions are based solely on their
outcomes or consequences. The goal is to provide the greatest good for the greatest
number
Negative: can result in biased allocations of resources, especially when
some of those affected lack representation
o Rights View of Ethics: a situation in which the individual is concerned with
respecting and protecting individual liberties and privileges.
Negative: can present obstacles to high productivity and efficiency by
creating an overly legalistic work climate
o Theory of Justice View of Ethics: a situation in which an individual imposes and
enforces rules fairly impartially
Negative: can encourage a sense of entitlement that reduces risk taking,
innovation, and productivity
How do you know what is the right thing to do?
o The rights view conflict
Roman gladiators
Free seats, had to know someone
Gladiators forced to fight
Violation of basic human rights, for entertainment
o We all have rights but sometimes rights conflict
Right to privacy, but also the right to free speech
o Is there some ethical principle that applies to all people, in all places, at all times?
o Ethics is not the same as legality
Slavery
o The justice view of ethics
People in the same condition should be treated the same way
Racial profiling
Treating people the same way can sometimes cause an ethical dilemma
o Acting ethically yourself
It is pointless to tell subordinates not to lie to each other, when you lie to
the customers.
What is Today’s Workforce Like and How Does it Impact the Way Organizations are managed?
Workforce Diversity: ways in which people in a workforce are similar and different from one
another in terms of gender, age, race, sexual orientation, ethnicity, cultural background, and
physical abilities and disabilities
o What is a euphemism
A polite or not offensive term that describes something troubling or
disgusting
Diversity an euphemism for race
Racism is hardwired into all human beings
o What do we do about racism as managers
When god created the world she allocated talent in a normal distribution
If talent is a normal distribution a good manager wants to seek out the
talented of every race to gain a competitive advantage
o Stereotyping
Taking a mental shortcut, picking out some characteristic and attributing it
to an entire group
Can be positive or negative
Don’t be deceived by the stereotype
Find the talented individual
o Individuals are not diverse, groups are diverse
What does the workforce look like today?
o The enduring lesson about generations is that they don’t understand each other
o Be aware that generations do not understand each other and work around it, in
order to communicate effectively
o The four generations working side-by-side in the workplace today:
The oldest most experienced workers (those born before 1946)
Make up 6% of the work force
The baby boomers (those born between 1946 and 1964)
Make up 41.5% of the workforce
Generation X (those born 1965 to 1977)
Make up 29% of the workforce
Gen Y (those born 1978 to 1994)
Make up almost 24%
o Gen Y – A population group that includes individuals born from 1978-1994.
How are Organizations and Managers Adapting to a Challenging Workforce?
Work life balance
o Family-friendly Benefits: benefits they provide a wide range of scheduling options
that allow employees more flexibility at work, accommodating their needs for
work/life balance
o Contingent Workforce: part-time, temporary, and contract workers who are
available for hire on an as-needed basis
Flextime
Flexible schedules, work an eight hour day but it doesn’t matter
what hours you work
Family friendly benefits
Child care
Care for the elderly
Religion
How do organizations make the customer king?
Of course the customer is important they are the ones with the money
Shaping a Customer-Responsive Culture
o Excellent Customer Service
Hire Properly
Freedom to act
Empower employees
Good listening skills
Organizational citizenship behavior
Give the customer what they want
How to improve customer service
o NO EMPLOYEE WILL TREAT A CUSTOMER BETTER THAN THE EMPLOYEE IS TREATED
o Freedom to act and empower employees
o Give employees a certain amount of discretion
Empowerment: when employees have decision-making discretion
o Learning how to listen to the customer
o Hire the right person for the job
Make sure the job fits the person
Find a match
o Continuous improvement- Organization’s commitment to continually improving the
quality of a product or service. (Components of continuous improvement: include
intense focus on customer, continuous improvement, quality of everything,
measurement, and empowerment of employees).
Kaizen: always looking to improve everything; continuous improvement
(Japanese)
o Determine if you can apply concepts
Managerial actions that are needed:
o Selection
o Training
o Organizing
o Empowerment
o Leadership
o Evaluation
o Rewards
When will managers use Quantum Changes rather than Continuous Improvement?
Work process engineering: radical or quantum change in an organization
Chapter 4 : Why do managers need to plan? If you don’t plan you won’t accomplish anything
Alice in wonderland, and the Cheshire cat
o “Where are you going little girl?” “I don’t know” “Than any road will take you
there.”
Reasons for planning
Changes in the environment
Reduce the impact of change on you
Reduce waste and redundancy
Set standards
Short comings of planning
o Rigidity
Tendency to stick to the plan even after the environment has changed
o Cannot replace intuition and creativity
Plans are a response to the present
Intuition and creativity are of the future
Cannot plan
o Planners focus on today’s competition, instead of on the future
o When people are successful they tend to get complacent
o Formal planning reinforces success, which may lead to failure
What do managers need to know about strategic management
Strategic management: what managers do to develop an organization’s strategies
o Strategies: plans for how the organizations will do what it’s in business to do, how it
will compete successfully, and how it will attract its customers in order to achieve its
goals
Strategic management process: a six step process that encompasses strategy planning,
implementation, and evaluation
o Occur together
STEP 1: Identify the organization’s current mission, goals, and strategies
STEP 2: External analysis
Opportunities
Threats
STEP 3: Internal analysis
Resources – organization’s assets that it uses to develop,
manufacture, and deliver products to its customers.
Capabilities – Organization’s skills and abilities in doing work
activities needed in its business.
Core competencies – Major value-creating capabilities of an organiz.
Strengths
Weaknesses
STEP 4: Formulating Strategies, STEP 5: Implementing Strategies, STEP 6:
Evaluating Results.
o Enterprise Statement
Need satisfied product or service market technology
Helps you keep it simple
What need are you satisfying?
There are different ways of satisfying a need
Helps determine what your market is
o Mission statement: a statement of an organization’s purpose
What a Mission Statement Includes:
Customers, Markets, Concern for survival, growth, and profitability,
philosophy, concern for public image, products or services,
technology, self-concept, and concern for employees.
o SWOT Analysis: The combined external & internal analysis
Strengths
Weaknesses
Opportunities – external analysis
Threats – external analysis
o An iterative process
Corporate Strategy – strategy that specifies what businesses a company is in or wants to be
in and what it wants to do with those businesses. (Growth, Stability, Renewal)
o Growth Strategy – strategy in which an organization expands the number of
markets served or products offered either through its current businesses or through
new businesses.
o Stability Strategy – Strategy which an organization continues to do what it’s
currently doing.
o Renewal Strategy – Strategy that addresses declining organizational performance.
Competitive Strategy – organizational strategy for how an organization will compete in its
businesses. (Choosing competitive strategy = leadership, differentiation, and focus).
o Strategic Business Units (SBUs) – Organization’s single businesses that are
independent and formulate their own competitive strategies.
o Competitive Advantage – What sets an organization apart; its distinctive edge.
o Cost leadership strategy (Low Cost): when an organization competes on the basis of
having the lowest costs in its industry
Example: Payless
o Differentiation strategy: what an organization competes on the basis of having
unique products that are widely valued by customers
Example: JimmyChoo
o Focus strategy: when an organization competes in a narrow segment or niche with
either a cost focus or a differentiation focus
Example: orthopedic shoes
Functional Strategies – strategies used in an organization’s various functional departments
to support the competitive strategy.
How Benchmarking help promote quality? – Benchmarking is the search for the best
practices among competitors or non-competitors that lead to their superior performance.
What types of goals do organizations have and how do they set those goals?
Types of Goals:
o Stated Goals – official statements of what an organization says, and wants its
stakeholders to believe, its goals are.
o Real Goals – Those goals an organization actually pursues as shown by what the
organization’s members are doing.
Setting goals
o Traditional Goal Setting – Goals set by top manager’s flow down through the
organization and become sub-goals for each organizational area.
Strategic Planning: If you have employees that work for you that you don’t trust
with strategic planning you have more problems than you realize
Bottom up strategic planning: Ask the people dealing directly with the markets
what one should do, and aggregate that information, synthesize it and implement it
throughout the organization
Top down strategic planning: the people at the top dictate how the organization
should be run
Steps in Goal Setting: Review the organization’s mission and employee’s key job tasks, Evaluate
available resources, determine the goals individually or with input from others, Make sure goals are
well-written and then communicate them to all who need to know, Build in feedback mechanisms to
assess goal progress, and Link rewards to goal attainment.
Management by objectives (MBO): a process of setting mutually agreed-upon goals and using those
goals to evaluate employee performance
o How many new contracts do you think you will make in the next few months
o How much money do you think you will make
o Bosses have a profound effect on how employees perform
Productivity/ Joy
Difficulty
Make it difficult but challenging
Types of Plans
Strategic Plans: plans that apply to the entire organization and encompass the organization’s overall
goals
Tactical Plans: plans that specify the details of how the overall goals are to be achieved
Long-term Plans: plans with a time frame beyond three years
Short-term Plans: plans with a time frame of one year or less
Short-term Plans: Plans w/ time frame of one year or less
Specific Plans: plans that are clearly defined and leave no room for interpretation
o Telling someone exactly how to do something
Directional plans: plans that are flexible and set general guidelines
o Telling someone the goal, and letting them figure out how to get there
Single-use plans: a onetime plan specifically designed to meet the needs of a unique situation
o Something catastrophic happens ( September 11th, Katrina)
Standing plans: plans that are ongoing and provide guidance for activities preformed repeatedly
Depending on your level of authority you have different responsibilities for planning
o Top managers responsible for strategic planning
o Lower level managers responsible for operational planning
Commitment concept: Idea that plans should extend far enough to meet those commitments made
when the plans were developed
Formal planning department: a group of planning specialists whose sole responsibility is to help write
the various organizational plans.
o Goal displacement: you see your job as producing a plan, then when the plan is completed
you are done, losing sight of the bigger picture
o Formal planning dependant
What contemporary planning issues do managers face?
How can managers plan effectively in dynamic environments?
o Environmental scanning: an analysis of the external environment that involves screening
large amounts of information to detect emerging trends
Competitive intelligence: a type of environmental scanning that gives managers accurate information about
competitors.
Management Entrepreneurship Module : What is entrepreneurship? - The process of starting new business, generally in response to opportunities
Enterprise Entre preneur—“between” “to take”
o Entrepreneurship ventures: organizations that pursue opportunities, are
characterized by innovative practices, and have growth and profitability as their
main goals
o Small business: an independent business having fewer than 500 employees that
doesn’t necessarily engage in any new or innovative practices and that has relatively
little impact on its industry
What planning do entrepreneurs need to do?
Business plan: a written document that summarizes a business opportunity and defines and
articulates how the opportunity is to be sized and exploited
What is in a full business plan?
o Executive summery
Brief
o Analysis of opportunity
Expected growth rate
o Analysis of the context
Know something about the economy and how it is regulated
Know the consumer tastes
o Description of the business
Supply chain
Distribution chain
Currency exchange rate
o Financial data and projections
Create spreadsheet
Covers at least 3 years
Pro forma balance sheets
Breakeven analysis
Cost controls
Available collateral
o Supporting documentation
What are the legal forms of organizations for entrepreneurial ventures?
Sole proprietorship
Partnership
Corporation
Choices of tax consequences, liability issues, and pros and cons
o Sole proprietorship
o General partnership
o Limited liability partnership (LLP)
o C corporations
o S corporations
o Limited liability company (LLC)
Employees Stock Ownership Plan (ESOP)
o “The Capitalist Manifesto” Louis Kelso
Some people are born with access to capital, most are not all we are left
with is labor. Why can’t we use our labor to gain shares in the company?
The longer you work at a company the more stock you have.
Sen. Russell Long put this language into law in 1974 ERISA (Employee
Retirement Income Security Act) law
401K and any other retirement benefits controlled by this act
employees share in both the profits and the losses of the company
What type of personality do entrepreneurs have?
o Always have new ideas
o Like to be the one to make decisions
Proactive personality: a personality trait describing those individuals who are more
prone to take actions to influence their environment.
Chapter 5 : What are the 6 key elements in organizational design? – work specialization, departmentalization, authority and responsibility, span of control, centralization v. decentralization, and
formalization.
Work specialization: dividing work activities into separate job tasks; also called division of
labor
Departmentalizing: grouping jobs together
o Functional departmentalization: grouping activities by function preformed
o Product departmentalization: grouping activities by major product areas
o Customer departmentalization: grouping activities by customer
o Geographic departmentalization: grouping activities on the basis of geography or
territory
o Process departmentalization: grouping activities on the basis of work or customer
flow
What is today’s view of departmentalization
Cross-functional teams: teams made up of individuals from various
departments and that cross traditional departmental lines
There are always trade-offs
Disadvantages:
More expensive, due to a lot of duplication
Advantages
More thorough
Authority: the rights inherent in a managerial position to give orders and expect the orders
to be obeyed
o If you give people the power to make decisions you give them authority
o Different types of authority relationships:
Line authority: entitles a manager to direct the work of an employee
Soldiers on the front line
Staff authority: positions with some authority that have been created to
support, assist, and advise those holding line authority
Soldiers behind the front line, drive the trucks, bring the supplies
Unity of command: the management principle that no person should report to more than
one boss
How does today’s view of authority differ from the historical view?
o Historical: they believed that managers were “all powerful”
o Enamored with authority
o One’s formal position in an organization were the sole source of influence
How do authority and power differ?
o Authority is a right, its legitimacy is based on an authority figure’s position in the
organization; goes with the job
o Power: an individual’s capacity to influence decisions
Reward power: the most influential power; based on the ability to distribute
something that others value
Coercive power: based on fear
Legitimate power: based on one’s position in that formal hierarchy
Expert power: based on one’s expertise, special skill, or knowledge
Referent power: based on identification with a person who has desirable
resources or personal traits
Organizational variables
Span of Control: the number of employees a manager can efficiently and effectively supervise
o Wide set of control: not very controlled, mostly left to their own devices
o Narrow set of control: very tightly controlled, heavily supervised
Centralization: the degree to which decision making takes place at upper levels of the organization
o Iraqi army: not authorized to make their own decisions
Decentralization: the degree to which lower-level managers provide input or actually make decisions
o US army: soldiers allowed to make their own decisions
Formalization: how standardized an organization’s jobs are and the extent to which employees
behavior is guided by rules and procedures
o Policies are written down
o It is impossible to write a rule that covers every situation
o Formalization is good when a situation is changing slowly
How is a Mechanistic organization different from an organic organization?
Mechanistic organization: a bureaucratic organization; a structure that’s high in centralization,
formalization, and centralization
o Rigid hierarchical relationships
o Fixed duties
o Many rules
o Formalized communication channels
o Centralized decision authority
o Taller structures
Organic organization: a structure that’s low in specialization, formalization, and centralization
o Collaboration (both vertical and horizontal)
o Adaptable duties
o few rules
o informal communication
o decentralized decision authority
o flatter structures
How does technology affect structure?
o Three different types of production
Unit production: making one unit at a time
Organic
Mass production: large-batch manufacturing
Mechanistic
Process production: continuous production
Organic
What are some Common Organizational Designs?
Simple Structure: an organizational design with low departmentalization, wide spans of control,
authority centralized in a single person, and little formalization
o Strengths: fast, flexible; inexpensive to maintain; clear accountability
o Weaknesses: not appropriate as organization grows; reliance on one person is risky
Functional Structure: groups similar or related occupational specialties
o Strengths: cost-saving advantages from specialization (economies of scale, minimal
duplication of people and equipment); employees are grouped with others who have similar
tasks
o Weaknesses: pursuit of functional goals can cause managers to lose sight of what’s best for
the overall organization; functional specialists become insulated and have little
understanding of what other units are doing
Divisional Structure: made up of separate business units or divisions
o Strengths: focuses on results—division managers are responsible for what happens to their
products and services
o Weaknesses: duplication of activities and resources increases cost and reduces
efficiency
Matrix-Project Structure: specialists from different functional departments are assigned to work
on projects led by a project manager
o Assigns specialists from different functional areas to work on projects but who return to
their areas when the project is complete
o Continuously work on projects
o Many people use project structure over matrix – structure in which employees
continuously work on projects.
Team Structure: the entire organization is made up of work teams
o Strengths: employees are more involved and empowered. Reduced barriers among
functional areas
o Weaknesses: no clear chain of command. Pressure on teams to perform
Boundary-less Structure: not defined by or limited to artificial horizontal, vertical, or external
boundaries; includes virtual and network types of organizations
o Strengths: highly flexible and responsive; utilizes talent wherever it is found
o Weaknesses: lack of control; communication difficulties
Boundary-less Organization: Organization whose design is not defined by, or limited to,
boundaries imposed by a predefined structure.
Virtual Organization: consists of a small core of full-time employees and outside specialists
temporarily hired as needed to work on projects
Network Organization: uses its own employees to do some work activities and networks of
outside suppliers to provide other needed product components or work process
What are today’s Organizational Design Challenges?
People working together across great distances may feel disconnected which will hinder the job
process
Global differences; cultures are different and interact in different ways
o Understand the way people differ and work around it
Learning Organization: an organization that has developed the capacity to continuously learn,
adapt, and change
o Develop a culture that encourages the sharing of information
o Beware of information hording; using information politically to make oneself look better
and others look dumb
Characteristics of a Learning Organization:
o Organizational Design – Boundary-less, Teams, Empowerment
o Information Sharing – Open, Timely, Accurate
o Leadership – Shared Vision, Collaboration
o Organiz. Culture – Strong mutual relationships, caring, trust, sense of community.
What is an Organization’s Culture and Why is it Important?
Organizational Culture: the shares values, principles, traditions. And ways of doing things that
influence the way organizational members act
o The way we do things here
Where does culture come from?
- The values and beliefs of the founder, that combines to form norms (the way we do things
here) and transform into behavior.
How Does Culture Influence Structure?
Strong Cultures – organizational cultures in which key values are deeply held and shared.
Chapter 6: What are the Human Resource Management Process and What Influences It?
Human Resource Management (HRM) – Management function concerned with getting, training,
motivating, and keeping competent employees.
Eight Key Components of an Organization’s HRM Process: Strategic human resource planning,
Recruitment and downsizing, Selection, Orientation, Training and development, Performance
management, Compensation and benefits, and Safety and Health.
o Strategic Human Resource Planning, Recruitment and Downsizing, Selection:
These 3 are used in identification and selection of competent employees.
o Orientation and Training and Development:
These 2 are for: adapted and competent employees with up-to-date skills,
knowledge, and abilities.
o Performance Management, Compensation and Benefits, Safety and Health:
These 3 are for: Competent and high-performing employees who are capable of
sustaining high performance over the long term.
What is the Primary U.S. Laws Affecting HRM?
Affirmative Action Programs – Programs that ensure that decisions and practices enhance the
employment, upgrading, and retention of members of protected groups.
Are HRM laws the same globally? – NO!
Work Councils – Groups of nominated or elected employees who must be consulted when
management makes decisions involving personnel.
Board Representatives – Employees who sit on a company’s board of directors and represent the
interest of employees.
How Do Managers Identify and Select Competent Employees? – First phase involves employment planning,
recruitment and downsizing, and selection.
Employment planning – process by which managers ensure they have the right numbers and
kinds of people in the right places at the right time. 2 STEPS:
o 1. Assessing current human resources and future human resources needs
o 2. Developing a plan to meet those needs.
Already discussed recruitment and downsizing and selection above.
How does an organization conduct an employee assessment?
Human resource inventory – A report listing important information about employees such as
name, education, training skills, languages spoken, and so forth.
Job Analysis – Assessment that defines jobs and the behaviors necessary to perform them.
Job Description – A written statement that describes a job.
Job Specification – Written statement of the minimum qualifications that a person must possess
to perform a given job successfully.
Where does a manager recruit applicants? ADVANTAGES / DISADVANTAGES
Internal Searches – Low cost / Limited Supply
Advertisements – Wide distribution target specific group / generates unqualified candidates
Employee referrals – Strong candidates because of referral / may not increase the diversity and
mix of employees.
Public employment agencies – Free or nominal cost / Lower skilled candidates
Private employment agencies – Wide contacts & careful screening / High cost
School placement – Large, centralized body of candidates / Limited to entry-level positions
Temporary help services – Fill temporary needs / expensive
What is the Human Resource Management Process and What Influences It?
Do exhibit 6-1 first
Make sure the functional goals of the HR department match the organizational goals
Major US Federal HRM Laws
The Civil Rights Act of 1863
o No enforcement
How do Managers Select Job Applicants?
Selection process: screening job applicants to ensure that the most appropriate candidates are
hired
o Selection Decision Outcomes: Exhibit 6-5
o Combat Human Error
Triangulation idea: ask more than one person to conduct an interview with the
same person
New Technique: Ask a critical thinking question, “What was a difficult situation
that you had to deal with, and how did you handle it?”
Write your questions down
How can you “Close the Deal”?
Inappropriate candidates are less likely to withdraw
Interviewers tend to oversell the job
Realistic Job Preview (RJP): a preview of a job that provides both positive and negative
information about the job and the company
How are Employees Provided with Needed Skills and Information?
How are new Hires Introduced to the Organization?
o Orientation: introducing a new employee to the job and the organization
Reduces anxiety
Find out organization, and work unit goals
Seeds up the introduction process
What is Employee Training?
o Employee Training: a learning experience that seeks a relatively permanent change in
employees by improving their ability to perform on the job
o Exhibit 6-6 and 6-7
Is there a need for training? what are the organization’s goals? what tasks
must be completed to achieve organizational goals? what behaviors are
necessary for each job holder to complete his or her job duties? what
deficiencies, if any, do job holders have in terms of skills, knowledge, or abilities
required to exhibit the essential and necessary job performance?
o How do you know if the training is working?
Ask people not it they liked it, but if it made them more efficient on the job
How Do Organizations Retain Competent, High-Performing Employees?
What is a Performance Management System?
o Performance Management System: a system that establishes performance standards
that are used to evaluate employees performance
o Performance Appraisal Methods
Exhibit 6-8
o Too many managers are cowards
Asking the HR department to fire people
o When you interview ask yourself “could I work for this guy?”
How do Organizations Retain Competent, High-Performance Employees
Performance Management System: a system that establishes performance standards that are
used to evaluate employee performance
o Written Essay
Simple to use
More a measure of evaluator’s writing ability than of employee’s actual
performance
o Critical Incidents
Rich examples; behaviorally based
Time-consuming; lack of quantification
o Graphic Rating Scale
Provide quantitative data; less time-consuming
Do not provide depth of job behavior assessed
o BARS (Behaviorally Anchored Rating Scale)
Focus on specific and measurable job behaviors
Time-consuming; difficult to develop measures
o Multiperson
Compares employees with one another
Unwieldy with large number of employees
o MBO (Management by Objectives)
Focuses on end goals; results oriented
Time-consuming; intimidation by the boss(expectations to high)
o 360 Appraisal: an appraisal device that seeks feedback from a variety of sources for the
person being rated
more thorough
time-consuming
Should People be Compared to one Another or Against a Set of Standards?
o Practical implication: for purposes of awarding bonuses and promotions you only have
to evaluate if people are performing against the standards
Jack Welsh: bell curve of employee rating F’s get let go A’s get bonuses
o Ethical implication: making comparisons between people can be both difficult and
flawed (like asking who is the better athlete when the people you are comparing play
different sports)
What happens if an Employee’s Performance is not up to Par?
o Discipline: actions taken by a manager to enforce an organization’s standards and
regulations
o Employee Counseling: a process designed to help employees overcome performance-
related problems
o Managers need to keep documentation of problem incidents, so as to avoid legal
problems for firing someone
How are Employees Compensated?
o The challenge facing compensation managers is to pay people just enough to keep them
motivated and working, while minimizing cost
o Compensation Administration: the process of determining a cost-effective pay structure
that will attract and retain employees, provide an incentive for them to work hard, and
ensure that pay levels will be perceived as fair.
o Skill-Based Pay: a pay system that rewards employees for the job skills they
demonstrate
o Variable Pay: a pay system in which an individual’s compensation is contingent on
performance
ESOP
The risk is shifted on to the employee
Why to Organizations offer Employees Benefits?
o Employee Benefits: nonfinancial rewards designed to enrich employees’ lives
What Contemporary HRM Issues Face Managers?
How Can Managers Manage Downsizing?
o Downsizing: the planned elimination of jobs in an organization
Euphemism for firing people
Thompson: failure of manager
o Layoff-Survivor Sickness: a set of attitudes, perceptions, and behaviors of employees
who survive layoffs
Remaining employees feel guilty and productivity decreases
Treat your employees like adults, tell them the truth. Explain what you are
going to do and why.
Careers
Boundryless Careers: entire career with a company
Old philosophy: a lot of jobs means you are incompetent
Chapter 7: Managing Change and Innovation 3/6/12 2:09 PM
What is Change and How Do Managers Deal with It?
Organizational Change: any alteration of an organization’s people, structure, or technology
An industries external changes result in the internal changes of the company
o Structure
Authority relationships
Coordinating mechanisms
Job redesign
Spans of control
o Technology
Work processes
Work methods
Equipment
o People
Attitudes
Expectations
Perceptions
Behavior
Who initiates Organizational Change?
o Change Agents: people who act as change catalysts and assume the responsibility for
managing the change process
Organization development
Consultants: outsiders who provide an outside perspective
“Any lawyer who represents himself has a fool for a client”
How does Organizational Change Happen?
o “calm waters” metaphor of change: a description of organizational change to a large
ship making a predictable trip across a calm sea and experiencing an occasional storm
the railroad industry
o “white-water rapids” metaphor of change: a description of organizational change that
likens that change to a small raft navigating a raging river
personal electronics
How do Organizations Implement Planned Changes?
o Organization Development (OD): efforts that assist organizational members with a
planned change by focusing on their attitudes and values
Survey feedback: a method of assessing employees’ attitudes toward and
perceptions of a change
Process Consultation: using outside consultants to assess organizational
processes such as workflow, informal in-unit relationships, and formal
communication channels
Dr. Shine observes the emotions of employees in order to determine
their real feelings and motives
Team-building: using activities to help work groups set goals, develop positive
interpersonal relationships, and clarify the roles and responsibilities of each
team member
Intergroup development: activities that attempt to make several work groups
more cohesive
How Do Managers Manage Resistance to Change?
Why do people Resist Organizational Change?
o Change replaces the known with uncertainty
o We do things out of habit
o The fear of loosing something already possessed
o The belief that the change is incompatible with the goals and interests of the
organization
What are some Techniques for Reducing Resistance to Organizational Change?
o Education and Communication
o Participation
o Facilitation and Support
o Negotiation
o Manipulation and Co-optation
o Coercion
What Reaction Do Employees Have to Organizational Change?
What is Stress?
o Stress: the adverse reaction people have to excessive pressure placed on them from
extraordinary demands, constraints, or opportunities
What are the Symptoms of Stress
o Physical: changes in metabolism, increased heart and breathing rates, raised blood
pressure, headaches, and potential of heart attacks
o Behavioral: changes in productivity, absenteeism, job turnover, changes in eating habits,
increased smoking or consumption of alcohol, rapid speech fidgeting and sleep
disorders
o Psychological: job-related dissatisfaction, tension, anxiety, irritability, boredom, and
procrastination
o Karoshi: Japanese term that refers to a sudden death caused by overworking
What Causes Stress?
o Stressors: factors that cause stress
o Role Conflicts: work expectations that are hard to satisfy
o Role Overload: having more work to accomplish than time permits
o Role Ambiguity: when role expectations are not clearly understood
o Type A Personality: people who have a chronic sense of urgency and an excessive
competitive drive
o Type B Personality: people who are relaxed and easygoing and accept change easily
How Can Stress Be Reduced
o Employee assistance and wellness programs
Employee Assistance Programs (EAPs): programs offered by organizations to
help employees overcome personal and health related problems
Wellness Programs: programs offered by organizations to help employees
prevent health problems
How Can Managers Encourage Innovation in an Organization?
Creativity: the ability to combine ideas in a unique way or to make unusual associations between
ideas
Innovation: the process of taking a creative idea and turning it into a useful product, service, or
method of operation
What is involves in Innovation?
o Perception
o Incubation
o Inspiration
o Innovation
How do You Foster Innovation?
o Make it safe to fail
Innovation Stimulants
o Structural Variables
Organic Structure
Abundant Resources
High Interunit
Communication
Minimal Time Pressure
Work and Nonwork Support
o Cultural Variables
Acceptance of Ambiguity
Tolerance of the Impractical
Low External Controls
Tolerance of Conflict
Focus on the End
Open-System Focus
Positive Feedback
o Human Resource Variables
High Commitment to training and development
High job security
Creative people
Foundations of Behavior/ Industry of Organizational Psychology: MGMT 452 Why should you care
o Absenteeism o Turnover
Organizations Citizen Behavioro Demonstrate how to behaveo Behave how you want your employees to behave
Job Satisfactiono Satisfaction and productivity are correlatedo It may be that they are reciprocally correlated
One causes the other, which may in turn cause the other Reciprocal throughout time S1P2S3P4 Just because two things are correlated, does not mean one causes the other
Workplace Misbehavior Attitudes: evaluative statements may be favorable or unfavorable concerning things or events
o Cognitiveo Emotionalo Behavioralo Positive attitudes translate into positive behaviors o Cognitive Dissonance: when one attitude conflicts with another attitude, or conflicts
with behavior If we consider a thing to be unimportant we can tolerate the dissonance Although dissonance may exist it may be overcome when following a managers
orders When coupling high dissonance with high rewards it may be tolerated
Personality o Introvert Extravert
Introvert does not mean shy Extravert “charger their internal batteries” being around people Varying degrees of each
o Thinking Feeling Thinker uses cognitive analysis The feeler, what effect will this have on the emotions of the people involved
o Sensing Intuitive Sensing: if you cant see it if its not in the book it doesn’t matter Intuitive: if you can dream it you can do it
o Judging Perceiving Preserving person always wants information The judging person pushes for closer right away
o MPTI does not predict job performance It helps to people to decide what job they want to do
Emotional Intelligence: being aware of your emotions and the emotions of others o Empathy: the ability to recognize the emotions of others o Sympathy: feeling the emotions of others o The ability to handle the emotions of others
Self-esteem is not the same as self-efficiency Self-efficiency: what you can and cannot do Self-esteem: are you happy with who you are
Carl Gustau Jung
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