MGMT 371: Principles of Management

ManagementTest Three: Chapters 11, 12, 13, & 15

Notes

Chapter Eleven:

Learning Outcomes

11.1 Describe six key elements in organizational design.

11.2 Contrast mechanistic and organic structures.

11.3 Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

11.4 Describe traditional organizational designs.

Chapter Notes

Exhibit 11-1 Purposes of Organizing

Divides work to be done into specific jobs and departments

Assigns tasks and responsibilities associated with individual jobs.

Coordinates diverse organizational tasks

Cluster jobs into units.

Establishes relationships among individuals, groups, and departments.

Establishes formal lines of authority.

Allocates and deploys organizational resources.

Exhibits 11-7 Centralization or Decentralization

More Centralization

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Environment is stable

Lower-level managers are not as capable or experienced at making decisions as upper-level managers.

Lower-level managers do not want a say in decisions

Decisions are relatively minor

Organization is facing a crisis or the risk of company failure.

Company is large.

Effective implementation of company strategies depends on managers retaining say over what happens.

More Decentralization

Environment is complex, uncertain

Lower-level managers are capable and experienced at making decisions.

Lower-level managers want a voice in decisions

Decisions are significant

Corporate culture is open to allowing managers a say in what happens.

Company is geographically dispersed

Effective implantation of company strategies depends on managers having involvement and flexibility to make decisions.

Datapoints

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24 percent of job seekers said they preferred to work at a company with more than 1,000 employees; 27 percent they preferred a company with fewer than 200 employees.

80 percent of a company’s total workforce is what typical; frontline managers directly supervise.

34 percent of HR executives said they had retained employees for new positions over the last six months.

68 percent of organizations said they’ve increased centralization in the last five years.

51 percent of white-collar workers say teleworking is a good idea.

42 percent of U.S. companies offer some form of telework arrangement.

55 percent of workers believe their work quality is perceived the same when working remotely as when working in the office.

Exhibits

Chapter Twelve:

Learning Outcomes

12.1 Describe contemporary organizational designs.

12.2 Discuss how organize for collaboration.

12.3 Explain flexible work arrangements used by organizations.

12.4 Discuss organizing issues associated with a contingent workforce.

12.5 Describe today’s organizational design challenges.

Chapter Notes

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Exhibit 12-3 Benefits and Drawbacks of Collaborative Work

Benefits

Increased communication and coordination

Greater innovative output

Enhanced ability to address complex problems.

Sharing of information and best practices

Drawbacks

Potential interpersonal conflict

Different views and competing goals

Logistics of coordinating

Exhibit 12-4 Making Communities of Practice Work

Have top management support and set clear expectations.

Create an environment that will attract people and make them want to return for advice, conversation, and knowledge sharing.

Encourage regular meetings of the community, whether in person or online.

Establish regular communication among community members.

Focus on real problems and issues important to the organization.

Have clear accountability and managerial oversight.

Exhibit 12-5 Benefits and Drawbacks of Open Innovation

Benefit

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Gives customers what they want – a voice

Allows organizations to respond to complex problems.

Nurtures internal and external relationships

Brings focus back to marketplace

Provides way to cope with rising costs and uncertainties of product development.

Drawback

High demands of imagining the process

Extensive support needed

Cultural challenges

Greater need for flexibility

Crucial changes required in how knowledge is controlled and challenged.

Datapoints

84 percent of employees who work remotely did so at least once a week

62 percent of workers want the option to telecommute.

67 percent of respondents said they want greater flexibility at work.

32 percent of orgnaizations have ad hoc alternative workplace programs such as mobil work, hoteling, and telecommuting.

69 percent of human resource consultants say that the use of a flexible workforce is a permanent change and not a temporary response to economic conditions.

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48 percent of respondents to a survey say that compared with now, the office of 2021 will have disappeared and employees will work from wherever they are.

32 percent of workers say the biggest advantage of working from home is no commute.

50 percent if adults surveyed said they preferred a traditional 9 to 5 shift for their workday; 50 percent said they’d like some other option.

33 percent of employees say they often receive emails from their bosses during the weekend.

Chapter Thirteen

Learning Outcomes

13.1 Explain the importance of the human resource management process and the external influences that might affect that process.

13.2 Discuss the tasks associated with identifying and selecting competent employees.

13.3 Explain the different types of orientation and training.

13.4 Describe strategies for retaining component, high-performing employees.

13.5 Discuss contemporary issues in managing human resources.

Chapter Notes

Exhibit 13-1 High-Performance Work Practices

Self-managed teams

Decentralized decision-making

Training programs to develop knowledge, skills, and abilities

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Flexible job assignments

Open Communication

Performance-based compensation

Staffing based on person-job and person-organization fit

Extensive employee involvement

Giving employees more control over decision making

Increasing employee access to information

Exhibit 13-2 HRM Process

Human Resource Planning

Derecruitment

Recruitment

Selection (Identify and select competent employees)

Orientation

Training (Provide employees with up-to-date skills and knowledge)

Performance Management

Compensation and benefits

Career Development (Retain competent and high-performing employees)

Datapoints

7

83 percent of companies cite a shortage of talent as their number one hiring challenge.

91 percent of recent college graduates say that if they started a job and didn’t like it, they would stay in that job for up to a year.

52 percent of HR professionals say they don’t use social networking sites to research job candidates.

85 percent of survey respondents said the top reason for why an employee should be terminated is sexually harassing a co-worker.

6.25 seconds is the time recruiters spend looking at a resume before deciding whether the candidate is a good fit for a job.

61 percent of workers surveyed say they’re never late for work.

15 percent of employers say they have fired a worker for calling in sick without a legitimate excuse.

36 percent of respondents say the top reason why someone hired would not work out in a position (other than poor performance) is a mismatched skill set.

39 percent of HR managers say that annual performance reviews are not an accurate appraisal of employees’ work

38 percent of senior managers say the most common mistake candidates make during job interviews is having little or no knowledge of the company.

82 percent of employees say they’ give up more than 5 percent of their salary to get a guaranteed retirement income.

Exhibit 13-3 Major HRM Laws

Equal Employment Opportunity and Discrimination

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Equal Pay Act 1963

Prohibits pay differences for equal work based on gender

Civil Right Act, Title VII 1963 (amended in 1972)

Prohibits discrimination based on race, color, religion, national origin, or gender.

Age Discrimination in Employment Act 1967 (amended in 1978)

Prohibits discrimination against employees 40 years and older.

Vocational Rehabilitation Act 1973

Prohibits discrimination on the basis of physical or mental disabilities

Americans with Disabilities Act 1990

Prohibits discrimination against individuals who have disabilities or chronic illnesses; also requires reasonable accommodations for these individuals.

Compensation/Benefits

Worker Adjustment and Retraining Notification Act 1990

Requires employers with more than 100 employees to provide 60 days’ notice before a mass layoff or facility closing.

Family and Medical Leave Act 1993

Gives employees in organizations with 50 or more employees up to 12 weeks of unpaid leave each year for family or medical reasons.

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Health Insurance Portability and Accountability Act 1996

Permits portability of employees’ insurance from one employer to another

Lilly Ledbetter Fair Pay Act 2009

Changes the statue of limitations on pay discrimination to 180 days from each paycheck

Patient Protection and Affordable Care Act 2010

Health care legislation that puts in place comprehensive health insurance reforms

Health/Safety

Occupational Safety and Health Act (OSHA) 1970

Establishes mandatory and health standards in organizations.

Privacy Act 1974

Gives employees the legal right to examine personnel files and letter of reference

Consolidated Omnibus Reconciliation Act (COBRA) 1985

Requires continued health coverage following termination (paid by employee)

Exhibits 13-4 Recruiting Sources

Internet

Advantages

Reaches large numbers of people

Can get immediate feedback

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Disadvantages

Generates many unqualified candidates

Employee Referrals

Advantages

Knowledge about they organization provided by current employee

Can generate strong candidates because a good referral reflects on the recommender

Disadvantages

May not increase the diversity and mix of employees

Company Web Site

Advantages

Wide distribution

Can be targeted to specific groups

Disadvantages

Generates many unqualified candidates

College Recruiting

Advantages

Large centralized body of candidates

Disadvantages

Limited to entry-level positions

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Professional Recruiting Organizations

Advantages

Good knowledge of industry challenges and requirements

Disadvantages

Little commitment to specific organization

Exhibit 13-5 Derecruitment Options

Firing: permanent involuntary termination

Layoffs: temporary involuntary termination; may last only a few days or extend to years

Attrition: Not filling openings created by voluntary resignations or normal retirements.

Transfers: Moving employees either laterally or downward; usually does not reduce costs but can reduce intraorganizational supply-demand imbalances

Reduced Workweeks: having employees, work fewer hours per week, share jobs, or perform their jobs on part-time basis

Early Retirements: providing incentives to older and more senior employees for retiring before their normal retirement date

Job Sharing: having employees, share one full-time position

Exhibit 13-7 Selection Tools

Application Forms

Almost universally used

Most useful for gathering information

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Can predict job performance but not easy to create one that does

Written Tests

Must be job related

Include intelligence, aptitude, ability, personality, and interest tests

Are popular (e.g., personality test; aptitude tests)

Relatively good predictor for supervisory positions

Performance-Simulation Tests

Use actual job behaviors

Work sampling – test applicants on tasks associated with that job; appropriate for routine or standardized work

Assessment center – stimulate jobs; appropriate for evaluating managerial potential

Interviews

Almost universally used

Must know what can and cannot be asked

Can be useful for managerial positions

Background Investigations

Used for verifying application data – valuable source of information

Used for verifying reference checks – not a valuable source of information

Physical Examinations

13

Are for jobs that have certain physical requirements

Mostly used for insurance purposes

Exhibit 13-8 Types of Training

General

Communication skills, computer systems application and programming, customer service, executive development, management skills and development, personal growth, sales, supervisory skills, and technological skills and knowledge

Specific

Basic life—work skills, creativity, customer education, diversity/cultural awareness, remedial writing, managing change, leadership, product knowledge, public speaking/presentation skills, safety, ethics, sexual harassment, team building, wellness, and others

Exhibit 13-9 Traditional Training Methods

On the job: employees learn how to do tasks simply by performing them, usually after an initial introduction to the task

Job Rotation: employees work at different jobs in a particular area, getting exposure to a variety of tasks.

Mentoring and Coaching: Employees work with an experienced worker who provides information, support, and encouragement; also called apprenticeships in certain industries.

Experiential Exercises: employees participate in role playing, simulations, or other face-to-face types of training

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Workbooks/Manuals: employees refer to training workbooks and manuals for information

Classroom Lectures: employees attend lectures designed to convey specific information

Technology-Based Training Methods

CD-ROM/DVD/Videotapes/Audiotapes/Podcasts: Employees listen to or watch selected media that convey information or demonstrate certain techniques.

Videoconferencing/Teleconferencing/Satellite TV: employees listen to or participate as information is conveyed or techniques demonstrated

E-Learning: Internet-based learning where employees participate in multimedia simulations or other interactive modules.

Mobile Learning: learning delivered via mobile devices

Exhibit 13-10 Performance Appraisal Methods

Written Essay

Evaluator writes a description of employee’s strengths and weaknesses, past performance, and potential; provide suggestions for improvement.

+Simple to use

-- May be better measure of evaluator’s writing ability than of employee’s actual performance

Critical Incident

Evaluator focuses on critical behaviors that separate effective and ineffective performance.

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+ Rich examples, behaviorally based

-- Time-consuming, lacks quantification

Graphic Rating Scale

Popular method that lists a set of performance factors and an incremental scale; evaluator goes down the list and rates employee on each factor

+ Provides quantitative data; not time-consuming

-- Doesn’t provide in-depth information on job behavior

BARS (Behaviorally Anchored Rating Scale)

Popular approach that combines elements from critical incident and graphic rating scale; evaluator uses a rating scale, but items are examples of actual job behaviors.

+ Focuses on specific and measurable job behaviors

-- Time-consuming; difficult to develop

Multiperson Comparison

Employees are rated in comparison to others in work group

+ Compares employees with one another

-- Difficult with large number of employees; legal concerns

MBO

Employees are evaluated on how well they accomplish specific goals

+ Focuses on goals; results oriented

-- Time-consuming

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360-Degree Appraisal

Utilizes feedback from supervisors, employees, and coworkers

+ Thorough

-- Time-consuming

Exhibit 13-11 What Determines Pay and Benefits

Level of Compensation and Benefits

Kind of Job Performance

Does job require high levels of skills?

Kind of Business

What industry is job in?

Unionization

Is business unionized?

Labor or Capital Intensive

Is business labor or capital intensive?

Management Philosophy

What is management philosophy toward pay?

Geographical Location

Where is organization located?

Company Profitability

How profitable is the business?

Size of Company

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How large is the organization?

Employee’s Tenure and Performance

How long has employee been with organization and how has he or she performed?

Exhibit 13-12 Tips for Managing Downsizing

Treat everyone with respect

Communicate openly and honestly:

Inform those being let go as soon as possible

Tell surviving employees the new goals and expectations

Explain impact of layoffs

Follow any laws regulating severance pay or benefits

Provide support/counseling form surviving (remaining) employees

Reassign roles according to individuals’ talents and backgrounds

Focus on boosting morale:

Offer individualized reassurance

Continue to communicate, especially one-on-one

Remain involved and available

Have a plan for the empty office spaces/cubicles so it isn’t so depressing for surviving employees.

Chapter Fifteen

Learning Outcomes

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15.1 Identify the focus and goals of individual behavior within organizations.

15.2 Explain the role that attitudes play in job performance.

15.3 Describe different personality theories.

15.4 Describe perception and factors that influence it.

15.5 Discuss learning theories and their relevance in shaping behavior.

15.6 Discuss contemporary issues in organizational behavior.

Chapter Notes

Exhibit 15-1 Organization as Iceberg

Visible Aspects

Strategies

Objectives

Policies and Procedures

Structure

Technology

Formal Authority

Chain of Command

Hidden Aspects

Attitudes

Perceptions

Group Norms

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Informal Interactions

Interpersonal and Intergroup Conflicts

Exhibit 15-2 Sample Employee Attitude Survey

Here are some sample statements from an employee attitude survey:

I have ample opportunities to use my skills/abilities in my job.

My manager has a good relationship with my work group.

My organization provides me professional development opportunities.

I am told if I’m doing good work or not.

I feel safe in my work environment.

My organization is a great place to work.

Exhibit 15-3 Examples of MBTI Personality Types

I-S-F-P (Introversion, Sensing, Feeling, Perceiving)

Sensitive, kind, modest, shy, and quietly friendly. Such people strongly dislike disagreements and will avoid them. They are loyal followers and quite often are relaxed about getting things done.

E-N-T-J (Extraversion, Intuition, Thinking, Judging)

Warm, friendly, candid, and decisive; also skilled in anything that requires reasoning and intelligent talk, but may sometimes overestimate what they are capable of doing.

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Data points

60 percent of workers are dissatisfied with their job; however, 70 percent of those unhappy employees plan to stay put.

62 percent of older workers say they were happiest in their career at some time in the past.

50 percent of college students say the longest they can go without using digital technology is up to 30 minutes.

29 percent of employees are inspired by or engaged with their job.

59 percent of employers say they’re very loyal to their employees; only 32 percent of employees feel their employer is loyal to them.

79 percent of chief financial officers say a sense of humor is important in the workplace.

80 percent of campus recruiters say students’ ways of communicating are too casual for the recruiting process.

41 percent of Millenials (and only 30 percent of baby boomers) agree or strongly agree that employers should do what their manager tells them, even when they can’t see the reason for it.

48 percent of workers say being courteous to coworkers helps with career advancement.

71 percent of adults say flip-flops are inappropriate for the workplace.

41 percent of chief financial officers said the most annoying coworker behavior is sloppy work.

Exhibit 15-4 Holland’s Personality – Job Fit

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Type

Personality Characteristics

Sample Occupations

Realistic. Prefers physical activities that require skill, strength, and coordination.

Shy, genuine, persistent, stable, conforming, and practical

Mechanic, drill press operator, assembly-line worker, farmer

Investigative. Prefers activities involving thinking, organizing, and understanding.

Analytical, original, curious, independent

Biologist, economist, mathematician, news reporter

Social. Prefers activities that involve helping and developing others.

Sociable, friendly, cooperative, understanding

Social worker, teacher, counselor, clinical psychologist

Conventional. Prefers rule-regulated, orderly, an unambiguous activities.

Conforming, efficient, practical, unimaginative, inflexible

Accountant, corporate manager, bank teller, file clerk

Enterprising. Prefers verbal activities that offer opportunities to influence others and attain power.

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Self-confident, ambitious, energetic, domineering

Lawyer, real estate agent, public relations specialist, small business manager

Artistic. Prefers ambiguous and unsystematic activities that allow creative expression.

Imaginative, disorderly, idealistic, emotional, impractical

Painter, Musician, Writer, Interior, decorator

Exhibit 15-5 What do you see?

Old woman or young woman?

A knight on a horse?

Exhibit 15-6 Attribution Theory

Observation

Interpretation

Attribution of Cause

Does person behave this way in other situation?

Yes: High Distinctiveness

Internal Attribution

No: Low Consistency

External Distinctiveness

Do other people behave the same way in similar situations?

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Yes: High Consensus

External Attribution

No: Low Consensus

Internal Attribution

Does person behave this way consistently?

Yes: High Consistency

Internal Attribution

No: Low Consistency

External Attribution

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