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