Organizational Structure and Human Resources

Ages of Man

Infancy

Childhood

Lover (teenager)

Soldier (young adult

Justice (accomplished adult)

elderly

Senility & death

Why Create Structure?

Organization StructureOrganization Structure defines how job tasks are formally divided, grouped, and coordinated

Work Specialization

Division of labor Describes the degree to which activities in

the organization are subdivided into separate jobs

Departmentalization Basis by which jobs are grouped together Function Product Geography Process Customer

Chain of Command

Unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom

Span of control - determines the number of levels and managers an organization has

Trend in recent years has been toward larger spans of control

Wide spans are consistent with efforts by companies to reduce costs, cut overhead, speed up decision making, increase flexibility, get closer to customers, and empower employees

Contrasting Spans of Control

Common Organizational Designs

Simple structureSimple structure BureaucracyBureaucracy Matrix structureMatrix structure

Simple Structure

Low degree of departmentalization Wide spans of control Little formalization Difficult to maintain in anything other than

small organizations

Bureaucracy

Highly routine operating tasks achieved through specialization

Formalized rules and regulations Tasks that are grouped into functional

departments

Bureaucracy

Centralized authority Narrow spans of control Decision making that follows the chain of

command

Formalization

Degree to which jobs within the organization are standardized

Job analysis

Union Organizations – Why do unions prefer standardized jobs?

Matrix Structure

Combines two forms of departmentalization—functional and product Management responsibilities must be carefully

agreed to. Management job descriptions must clarify

responsibility Methods must be in place to establish how

information will be gathered and reported.

New Options

The Team StructureThe Team Structure The Virtual OrganizationThe Virtual Organization The Boundaryless OrganizationThe Boundaryless Organization

<Position Title Goes Here>(Focus is on _________________)

The Work/Tasks:

Skills/Attributes:

Interacts With:

Decision Rights: Key Enablers:

Key Measures:• Tasks• Who person contacts

• Decisions person can make alone

• Measures

• Experience component of job

• Support required

Intent: (General descripton of position

Manager, Business Administration(Focus is on Internal Business Operations)

Intent: The Manager, Business Administration is responsible for ensuring the smooth operation of all internal, day-to-day aspects of Niagara Institute’s business including: finance and budgeting; invoicing and payables; facilities and supplier management; technology; contract administration; and Human Resource operations including Union relationship management. The Manager, Business Administration frees up the other functional leaders so they can focus on the work of their functions.

The Work/Tasks:

Skills/Attributes:

Interacts With:

Decision Rights: Key Enablers:

Key Measures:• Manages all aspects of the NI’s financial activities;

financial analysis and tracking

• Liaises with CBoC’s key operational departments as required: Finance, HR, Technology, etc.

• Manages NI’s overall facilities requirements for NI’s own needs and to support program delivery

• Contract Administration - Manages supplier contracts; ensures customer contract are in place to support work

• Ensures appropriate HR processes are in place

• Manages the Union relationship and contract negotiations

• Ensures technology infrastructure is operational and appropriate to support business needs

• Acts as the officer in charge for all business compliance issues

• All NI staff

• Suppliers

• CBoC counterparts

• Union officials

• Auditors

• Taxation and other compliance officials

• What is in budget or out of budget, once budget established and agreed by the Management Team

• Appropriate technology to support business operations

• Union contract issues

• Internal process changes (as relates to NI’s internal business operations – not customer processes)

• Supplier contract issues (e.g. – as relates to facilities management)

• % over or under budget (for NI’s operations)

• Invoicing, receivables and payables managed within targeted time lines (cash flow management)

• Employee satisfaction with: technology capability; efficiency and ease of use of internal business processes

• Supplier contracts are current and competitive

• Customer contracts held for all work started

• Compliance issues addressed in a timely fashion ( e.g. – up-to-date)

• Quality of union relationship; contract is current

• Financial Management knowledge and skill

• Knowledge of technology

• Negotiation skills

• Solid understanding of NI’s business and its critical success factors

• Process improvement

• Effective communicator; persuasive

• Good interpersonal skills

• Knowledge of HR operating practices

• Excellent Administrative skills

• Budget required to effect changes in technology platform to support business needs

• Access to information ( from the three operating areas)

• Clear understanding of the boundaries within which to negotiate

• Access to CBoC resources and support from them in key departments: finance, HR, technology

• Client focused financial tracking system

Mechanistic versus Organic Structures

Strategy and Structure

How do different structures produce How do different structures produce different outcomes? different outcomes? Innovation StrategyInnovation Strategy Cost-Minimization StrategyCost-Minimization Strategy Imitation StrategyImitation Strategy Marketing/ Sales StrategyMarketing/ Sales Strategy Globalization StrategyGlobalization Strategy

Organizational Structure and Employee Behavior

Work Specialization Span of Control Centralization

Job Opening and you are interviewing

Use previous job description Generate one question you would ask of the

interviewee Develop the kind of answer you would like to

hear.

Employee Selection

Interview is the most widely used selection tool

Results tend to have a disproportionate amount of influence on the selection decision

Employee Selection

The unstructured interview has been proven to be an ineffective selection device

The data gathered from such interviews are typically biased and unrelated to future job performance

Behavior Description Interviewing

Best Predictor of Future Behavior is Past Behavior

It is possible to ask questions that elicit descriptions of behavior.

When asking such questions, you have to have follow ups planned but you cannot ask them in a rote manner.

Inference is critical here. This is a very difficult task to do from the details.

Behavior Description

• Contract Administration - Manages supplier contracts; ensures customer contract are in place to support work

• Can you tell me about a time when you had responsibility for managing suppliers for an organization? • What decisions could you make about suppliers?

• How did your differentiate between suppliers

• Did you have a difficult supplier you had to deal with? If yes, tell me about it.

Written Tests

Intelligence Aptitude Ability Interests Integrity

Performance Simulation Tests

Work samples Assessment centers

Training

Basic Basic LiteracyLiteracy

SkillsSkillsInterpersonalInterpersonal

SkillsSkillsTechnicalTechnical

SkillsSkills

ProblemProblemSolvingSolvingSkillsSkills

DiversityDiversityTrainingTraining

EthicsEthicsTrainingTraining

Training vs Learning Formal training – What is

the transfer of training? Informal training – Job

shadowing, requesting help, partnering

On-the-job training – A method for development while doing the work

Off-the-job training – Schools, MBAs, etc.

Career Development

Organization’s responsibility is to build employee self-reliance and to help employees maintain their marketability through continual learning

High Potentials

What is a high potential? How are they identified? How are they developed?

McCall – High Flyers Eleven Dimensions of Early Identification of Global Executives

Seeks opportunity to learn Acts with Integrity Adapts to cultural differences Is committed to making a difference Seeks broad business knowledge Brings out the best in people Is insightful: sees things from new angles Has the courage to take risks Seeks and uses feedback Learns from mistakes Is open to criticism

McCall, Morgan W. High Flyers: developing the next generation of leaders Harvard Business School Press, 1998.

Organization’s Responsibility

Clearly communicating the organization’s goals and future strategies

Creating growth opportunities Offering financial assistance Providing the time for employees to learn

Employee’s Responsibility

Know yourself Manage your reputation Build and maintain network contacts Keep current

Employee’s Responsibility

Balance your specialist and generalist competencies

Document your achievements Keep your options open

Avoiding Negative Influences in Performance Appraisal Objectives employees seek are clear Criteria for measuring objectives are clear

and known in advance

Avoiding Negative Influences in Performance Appraisal Efforts made within employee capability are

measured as satisfactory Performance as requested will lead to

rewards valued by employee

Criteria Evaluated

Individual Task Outcomes Behaviors Traits

Who Should Evaluate?

Immediate Superior Peers Self-evaluation Immediate subordinates 360° feedback

Performance Appraisal Methods

Written Essays Critical Incidents Graphic Rating Scales Behaviorally Anchored Rating Scales Multi-person Comparisons

Improving Performance Appraisals

Emphasize behaviors rather than traits

Document performance behaviors in a diary

Improving Performance Appraisals

Use multiple evaluators Evaluate selectively Train evaluators Provide employees due process

Performance Feedback

Manager’s reluctance Uncomfortable discussing performance

weaknesses Employees become defensive Employees’ inflated assessment of own

performance Training in conducting constructive feedback

Team Performance Appraisals

Tie the team’s results to the organization’s goals

Begin with the team’s customers and associated work processes

Team Performance Appraisals

Measure both team and individual performance

Train the team to create its own measures

Performance Appraisal in Global Context

Caution required in generalizing across cultures

Many cultures are not particularly concerned with performance appraisal

Social Identity Theory

Diversity

“I am ….”

Please take a moment to complete this statement

Do this by jotting down 10 different responses to: “I am….”

Answers typically fall into 3 categories (Gordon, 1968; Rosenberg, 1979)

Physical attributes, e.g., I am tall.

Social identities, or formal/informal social roles, e.g., I am a son.

Personal identities, or personality attributes of self, e.g., I am impatient.

Social Identity Theory Key facets of Social Identity Theory (Tajfel

& Turner, 1986): Recognizes the importance of categorization

People have an innate and strong tendency to mentally organize things and people (including themselves) into categories

To the extent that we associate ourselves with groups (i.e. categorize ourselves), we have social identities

Social identities (via our group memberships) are important aspects of how we define ourselves

Social Identity Theory Think about a group you belong to and

with which you strongly identify Write down what that group means to you List some examples (e.g., things you’ve said or done

or felt) that demonstrate that you strongly identify with that group

Think about a group you belong to but with which you don’t identify

Write down what that group means (or doesn’t mean) to you

List some examples that demonstrate your lack of identification with that group

Social Identity Theory

Volunteers? Groups with which you identify… Groups with which you don’t identify…

Social Identity Theory What kinds of factors influence level of

identification with the group?

How do you feel when someone says something negative about a group with which you strongly identify?

How do you feel when the group with which you identify is associated with something bad?

How do you feel when that group is associated with something good?

Social Identity Theory More key facets of Social Identity Theory:

Social identities also dictate our perceptions of members of our “in-groups” as… Similar to us, at least on the dimension that defines

the group, and other positive attributes And yet diverse (some in-group heterogeneity)

And social identities serve to distinguish us and those in our in-group from members of out-groups

Personal Example

Social Identity Theory Social identity influences inter-group bias

and relations through the process of social comparison (Festinger, 1954) Social comparison is the evaluation of

ourselves (our performance, our abilities, our appearance, etc.) in relation to others

– Upward social comparison• i.e., relative to those who are “better” or “better off”

• Tends to lower our self-esteem– Downward social comparison

• i.e., relative to those who are “worse” or “worse off”

• Tends to raise our self-esteem

Social Identity Theory SI Theory extends the concept of social

comparison to groups: To the extent that we identify with a group

When we compare our group to “better” groups Our group-esteem suffers, and… Consequently, our self-esteem suffers (by association)

When we compare our group to “worse” groups Our group-esteem improves, and… Consequently, our self-esteem improves (by

association) Consequently, to the extent that we identify

with groups that are valued (e.g., powerful, prestigious, high status, popular), we’ll feel good about ourselves.

Social Identity Theory

How social identity affects inter-group bias and relations: People are motivated to achieve high self-

esteem, so how do we maximize it? Select dimensions on which to compare (those on

which your in-group excels) Distort perceptions of out-groups (and in-groups)…

a.k.a. stereotyping and prejudice Promote (give advantages to) your in-group…

a.k.a. nepotism Hinder out-groups…

a.k.a. discrimination

Social Identity Theory

Conclusions: Group identification is a natural consequence of our

tendency to use categorization Personal self-esteem is effected by the esteem of in-

groups We seek to enhance in-group esteem (and

consequently self-esteem) by maximizing downward social comparisons and minimizing upward social comparisons

Some ways to achieve this goal: Compare on in-group’s strongest dimensions Distort perceptions of out-groups and in-groups Promote our in-group Hinder out-groups

Implications of Social Identity theory for the workplace?

Diversity

Diversity training: Recent survey found that 93% of companies with diversity initiatives used training as part of their programs (Robbins)

Rationale for Diversity Efforts Combat negative consequences of SI Theory Expanding, diverse marketplace and pool of talent Enhance organizational performance

Results?

Diversity

Results of private sector research indicate that the companies that have done the most to foster diversity are also the most successful companies overall.

Diversity is measured as % of diversity in leadership ranks and at other levels, membership on boards of directors, spending with minority suppliers, etc.

Organizational Success—Stock performance

Diversity

Enhanced perspectives and a wide range of points of view.

Enhanced ability to target various segments of the market.

Diversity programs and initiatives as the norm in many companies.

Complex Relationship Between Diversity and Organizational

Success Negative correlation between leadership

diversity and organizational success in the short term. Difficulties associated with building consensus. Need to dismantle the existing organizational

culture and create a more inclusive one in its place.

Organizational performance can be hindered as organizational cultural changes.

Social Identity and Diversity: Conclusion and Implications Leadership Diversity

There are psychological, fundamental, practical, fiscal reasons for fostering diversity in organizations.

We need to define our organizational priorities around issues of organizational success and social responsibility.

Social Identity and the Global Economy:

Driving need to understand and assess culture (McInerney, 1995)

Etic, or universals: We all eat, we all interact with others, and we all have ways of dressing.

Emic, or culture specific: What, and how, do we eat? How do we dress? How do we interact with others?

“I am….a son”

The importance of “Cultural syndromes" (Triandis): Shared attitudes, beliefs, norms, and values found among those who speak a particular language dialect, in a specific geographic region, during a particular historic period.

Cultural syndromes provide a focus, so that we can get out of the fuzzy construct of "culture" and into a construct that we can probe systematically.

Individualism vs. Collectivism (Ulaszek & Triandis study)

Hofstede’s Framework for Assessing Cultures Power distance Achievement vs. nurturing Uncertainty avoidance Long-term vs. short-term

orientation Vertical and horizontal cultures Individualism vs. collectivism

“I am ….impatient”

Personality traits are defined as "dimensions of individual differences in tendencies to show consistent patterns of thoughts, feelings, and actions" (McCrae & Costa, 1990).

Examples: nervous, enthusiastic, original, accommodating, and careful

Allport and Odbert (1936) identified some 4,000 trait names in the English language, and similar (although generally smaller) lists of traits have been compiled for many other languages, including Turkish and Chinese (Somer & Goldberg, 1999; Yang & Lee, 1971).

FIVE FACTOR MODEL (FFM)

Traits organized into five factors of Neuroticism (N), Extraversion (E), Openness to Experience (O), Agreeableness (A), and Conscientiousness (C) (FFM; McCrae & John, 1992).

Individuals who are high in N are likely to be anxious, easily depressed, and irritable, vs. those who are low in N are calm, even-tempered, and emotionally stable.

Extraverts are lively, cheerful, and sociable; introverts are sober and taciturn.

Open men and women are curious, original, and artistic; closed people are conventional and down-to-earth.

Agreeableness is characterized by trust, compassion, and modesty;

Conscientiousness is seen in organization, punctuality, and purposefulness.

An Emic Measure

The 5-Factor Model: Instrument has been translated into more than 40 languages or dialects, and studies of its factor structure have been conducted in more than 30 cultures, from Zimbabwe to Peru (McCrae & Allik, 2002).

Limitations to measure

Existing additional personality factors specific to individual cultures (Cheung and Leung; 1998)

Factors may not all be equally important in every culture.

For example, individual differences in Openness to Experience may be of little consequence in traditional cultures where life's options are severely limited (Piedmont, Bain, McCrae, & Costa, 2002).

Universal Finding on Age

Changes in the mean level of all five factors between adolescence and about age 30 (McCrae & Costa, 1990): N, E, and O decline, whereas A and C increase. After age 30, the same trends are seen, but at a much slower pace: In terms of personality traits, 30-year-olds resemble 70-year-olds more than 20-year-olds.

Germany, Italy, Portugal, Croatia, South Korea, Estonia, Russia, Japan, Spain, Britain, Turkey, and the Czech Republic showed patterns of age differences very similar to those seen in the United States.

It appears that age, especially from adolescence to mid-adulthood, tends to make individuals better adjusted, more altruistic, and better organized, but also less enthusiastic and less open to new experience (McCrae et al., 2000).

How used in workplace?

Black (2000) has shown that this 5 Factor Model is useful in police selection, adding incremental validity above and beyond cognitive testing.

Police applicants in New Zealand are now routinely screened with the instrument.

Groups

Two or more individuals, interacting and interdependent, who come together to achieve particular objectives

Formal or informal

Four Types of Groups

Command Task Interest Friendship

Why Do People Join Groups?

Basic Group Concepts

Roles Norms Status Cohesiveness Size Composition

Roles

Psychological Contract Sets out mutual expectations

Norms

Acceptable standards of behavior within a group that are adopted and shared by the group’s members

Examples of Cards Used in Asch Study

X A B C

Conformity and the Asch Studies

Demonstrated that subjects conformed in about 35% of the trials

Members desire to be one of the group and avoid being visibly different

Members with differing opinions feel extensive pressure to align with others

Symptoms of Groupthink

Group members rationalize any resistance to their assumptions

Members pressure any doubters to support the alternative favored by the majority

Symptoms of Groupthink

Doubters keep silent about misgivings and minimize their importance

Group interprets members’ silence as a “yes” vote for the majority

Variables Influencing Groupthink

Group’s cohesiveness Leader’s behavior Insulation from outsiders Time pressures Failure to follow methodical decision-making

procedures

Groupshift Decision of the group reflects

the dominant decision-making norm that develops during the group’s discussion

Jerry Harvey’s Story

What’s likely to happen? How was the decision made? Who wanted to go to Abilene?

Abilene Paradox

Author: Harvey, Jerry B. Title: The Abilene paradox and other

meditations on management Published: Lexington, Mass. : Lexington

Books ; San Diego, Calif. : University Associates, c1988.

Bring Ethical Decision Making Challenge to next Class!!!

Stages of Group Formation

Forming Storming Norming Performing Ending

Forming

Creation of group Getting to know each other Developing expectations

Storming

Establishing boundaries Who will lead/ control How will conflicts be settled

Norming

Agree as a group to rules and limits Define what the task is Determine who will complete what parts Establish how influence/discipline will operate

Performing

All ancillary components cleared away – now can focus on the task

Ending

Not in every model Recognize the need to get closure when

things end

Use of Outside Products

Tools are useful, but the way of organizing the world is the real value

Self-Assessment, Organization culture and MBTI from previous classes

Today FIRO-B®

Other tools for decision making and change Using this approach to understand what your

are dealing with is essential to developing strategic organizations.

Overview of FIRO-B®

Developed by Will Schutz. Was originally created as a means to select submarine

crews. Concerned about motivation to engage in social

behavior. Decided that these motivations were derived from

needs. Instrument owned and published by Consulting

Psychologist Press.

The FIRO-B® Model Three basic interpersonal needs

Need to be a part of the group –

Inclusion

Need to be in control of the situation and others –

Control

Need to be liked and feel close to others -

Affection

The FIRO-B® Model Not simply the need but what you do with it.

There are two types of need:

Those you show to others, that can be observed by people watching you –

expressed

Those that you are aware of but typically do not show - Need to be in control of the situation and

others – wanted

FIRO-B® Scoring Put the data into a matrix with the need across the

top and the expressed vs. wanted on the side.

Inclusion Control Affection

expressed eI eC eA

wanted wI wC wA

FIRO-B® Scoring

• Low = I do this or respond this way occasionally and selectively.

• Medium = I do this or respond this way usually and with many people.

• High = I do this or respond this way very frequently and with almost everyone.

Groups Evolve Through Particular Stages Along the Dimensions of:

Inclusion — early formation stage•Where do I fit in?•Do I want to be in or out?•How committed will I become?•How committed is our leader?

Control — mid-development•Competition for leadership.•What is the method for decision making?•How will power be distributed?

Affection How close shall I get if the group exists over long period of time?

Inclusion — Control — Affection

Inclusion Forming new relations, associating

with people Extent of contact and prominence a

person seeks

Expressed:

To what extent do I include other people in my activities (e.g., meetings, discussions) and get them to include me in theirs? Low – Quiet - Very reserved -Difficult to know

High – Engaging – Outgoing - Connected

Wanted:

How much do I want others to include me in their activities and invite me to participate?

Low – Private - Little concern for popularity -

High - Need for acceptance - Hate to be left out

Typical Behavior for:

eI

HIGH

• Initiates contact

• Shows interest in others

• Likes to socialize

• Group-oriented

• Communicative

• Outgoing

LOW

• Appears reserved

• Seems restrained

• Fact-oriented

• Doesn’t like to chit-chat

Typical Behavior for:

HIGH

• Fears being ignored or left out

• Likes to be included

• Is easily slighted

• Wants attention

• Concern for recognition

• Desires status

LOW

• Seems self-sufficient

• Appears self-reliant

• Likes to be alone

• Doesn’t care to socialize

wI

Control Decision making, influence, and persuasion

between people Extent of power or dominance a person

seeks

Expressed:

How much control and influence do I exert over things? To what extent do I take charge and tell others what to do?

Low - Flexible - Little interest in power –Easygoing

High - Intense –Exacting - Dominant

Wanted:

How much control and influence do I want others to have over me? How comfortable am I with others telling me what to do?

Low – Independent - Rebellious - Prefers autonomy

High - Compliant – Dependent - Uncomfortable making decisions

Typical Behavior for:

HIGH

• Likes to direct people

• Makes decisions readily

• Organizes self and others

• Seems confident

• Wants challenges

LOW

• Not power-oriented

• Non-directive

• Prefers not to supervise others

• Wants others to make their own decisions

eC

Typical Behavior for:

HIGH

• Wants direction or guidance

• Concerned about rules

• Supports others

• Cooperative

• Methodical and orderly

• Wants structure

LOW

• Appears independent

• Works with, not for others

• Follows through on decisions

• Rejects structure

wC

Affection

Emotional ties and warm connections between people

Extent of closeness a person seeks

Expressed:

To what extent do I act open, trusting, and caring toward others?

Low – Businesslike - Aloof - Rational

High - Caring – Warm - Reassuring

Wanted:

How much do I want others to act open, trusting, and caring toward me?

Low - Distant - Closed – Cautious

High - Considerate – Approachable - Sensitive

Typical Behavior for:

HIGH

• Open and trusting

• Warm and friendly

• Expresses feelings

• Gives acknowledgment

• Shows support

• Shows encouragement

LOW

• Appears unfeeling

• Seems calm and aloof

• Appears objective and formal

• Appears unemotional

eA

Typical Behavior for:

HIGH

• Wants to be liked

• Wants others’ trust

• Concern for approval

• Responds well to praise

• Easily hurt

• Takes criticism hard

LOW

• Appears guarded

• Not easy to know

• Can be direct and blunt

• Seems invulnerable

• Appears cool and rational

wA

The Hawthorne Studies

Concluded that a worker’s behavior and sentiments were closely related

Group influences were significant in affecting individual behavior.

Group standards were highly effective in establishing individual worker output.

Money was less a factor in determining worker output than were group standards, sentiments, and security.

Cohesiveness

The degree to which members of the group are attracted to each other and motivated to stay in the group

Relationship of Cohesivenessto Productivity

Cohesiveness

Alig

nm

en

t o

f g

rou

p a

nd

o

rgan

izat

ion

al g

oa

ls

High Low

High

LowDecrease

inproductivity

No significanteffect on

productivity

Strong increasein

productivity

Moderate increasein

productivity

How Can Managers Encourage Cohesiveness?

Make the group smaller Encourage agreement on

group goals Increase the time spent together Increase the status and perceived difficulty of

group membership Stimulate competition with other groups Give rewards to the group rather than

members Physically isolate the group

How Size Affects a Group

Smaller groups are faster at completing tasks

Large groups are consistently better at problem solving

Increases in group size are inversely related to individual performance