Chapter 6: Managing Human Resources 30/04/2012 13:32:00

Chapter 1 Organizations: a systematic arrangement of people brought together to accomplish a specific purpose Three Characteristics All Organizations Share: o o o Distinct purpose/goal expressed in terms of a goal or set of goals People that achieve that goal or purpose 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 o

Easier to be effective if you ignore efficiency Effectiveness is most important

Four Management Functions to *Achieving the organizations 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 organizations 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.

Managers 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*

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 persons responsibilities increase the mix of skills changes o o o First level managers Leading 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 dont know history are condemned to repeat it Gorge Santayana History doesnt repeat itself but it rhymes -Mark Twain The renaissance began at the end of the 14 th 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 o Taken from Robert Smiths Wealth of Nations, 1974 Known as the first economic book

1812-1911 o o The US got into the industrial revolution rather late The civil war, the production of arms and ammunition, propelled the US into the industrial revolution o o Huge waves of immigrants helped stimulate this growth 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 o Scalar chain: each boss reports to their own boss. Unity of Direction: when an employee is at work, their main direction should be to complete company work o o Remuneration: workers must be paid fairly for their work 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 o o 1940s if you cant measure it you cant manage it 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 Its not what you think its how you think

There is no one best way

Chapter 12

How Does the Communication Process Work? (7 Parts)

The communication source or sender, encoding, the message, the channel, decoding, the receiver, and feedback.

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

The Message actual physical product from source that conveys some purpose. (speaking, writing, painting, gesturing)

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.

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)

Feedback the check on how successful we have been in transferring our messages as originally intended.

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 o

If Medium is too rich : information overload If medium is not rich enough : ambiguity/uncertainty

Grapevine: is the unofficial way that communications take place in an organization. Its neither authorized nor supported by the organization, and grapevine gets information out to organizational members as quickly as possible. o o o Marvin Gay Origins: Civil War messages strung from trees 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 Dont 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 o Ides of March- George Clooney Steel Magnolias- Julia Roberts

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)

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.

Information Overload: when amount of information one has to work with exceeds ones processing capacity.

o o

Emotions: How the receiver feels when a message is received Language: Words have different meanings to different people. Receivers will use their definition of words being communicated.

Gender: How males and females react to communication may be different, and they each have different communication style.

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 Dont Understand- Debora Tanning o explains how men and women differ in communication

Which communication style is better? neither

Why should simplified language be used? o o Incontrovertible: cannot be argued with Constrained emotions Recognize when your emotions are running high

When they are, dont 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 communicatedor 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 o Recognizing emotions in others and reporting them 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?

Transfer of information Positive Continual, Cheap, Global

Negative Deluged with information , Waste of time

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 thats subjective can be a meaningful tool for experiences managers. Most likely to be accepted when it comes from a credible source or if its objective

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 its 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

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 o o o Clarify the assignment Specify employees range of discretion Allow employees to participate Inform others that delegation has occurred

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

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 dont 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 thats constructive and supports an organizations goals

Dysfunctional conflicts: conflict thats 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.

C o n fl i c t T y p e

Organizations Internal characteristics

D y s f u n c t i o n a l F u n c t i o n a l D y

Apathetic, lack of new ideas

L e v el o f o r g a ni z a ti o n al p e rf o r m a n c e L o w

Viable, self critical, Innovative

H ig h

Disruptive, chaotic,

L o

How does a manager stimulate conflict? o o Are you surrounded by yes people Are employees afraid to admit ignorance and uncertainties to you?

Conflict Management: What works and when? o o o Concern for Self Concern for others 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. 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 isnt that important to you or when you want to build up credits for later issues.

Devils 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 youll be negotiating

o o o o o o

Begin with positive overture (small concession) Address problems, not personalities Pay little attention to initial offers Emphasize win-win solutions Create an open and trusting climate 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 theyre being accomplished as planned and correcting any significant deviations. o Comparing actual results versus desired results 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 o o o Planning: Goals, Objectives, Strategies, Plans Organizing: Structure, Human Resource Management Leading: Motivation, Leadership, Communication, Individual/Group behavior Controlling: Standards, Measurements, Comparison, Actions 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 o Diversity of activities Subjective measures

What takes place as managers control 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 o o Immediate corrective action: correcting action that addresses problems at once to get back on track Basic corrective action: corrective action that looks at how and why performance deviated before correcting the source of deviation How do you revise the standard Motivate people to pick a goal that is hard, but not too hard.

What should managers control?

Feed-forward control: control that takes place before a work activity is done Preventing a problem before it happens

o o

Concurrent control: control that takes place while a work activity is in progress 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 o Ratios o

Captures a lot more than just cash flow and net income, you have to think about what you are giving to your providers It is good for comparison The best predictor of bankruptcy Liquidity Current ratio: when a companys 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 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 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 organizations 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. (Sales / Total Assets) (Profits before interest and taxes) / (Total interest charges) (Current assets inventories) / (current liabilities)

(net profit after taxes)/(total assets)

Management information system (MIS): A system used to provide management with needed information on a regular basis o o o Security Easily understood The difference between data and information Information: data that has been interpreted

Every industry has its own important number o Airplane Industry o Retail Sales per square foot: major cost in retail, buy inventory on credit. Upkeep most expensive, operations cost per square foot Revenue seat miles: how much revenue is generated by each person sitting in a seat

Balances scorecard: a performance measurement tool that looks at more than just the financial perspective o o o How many minorities have been hired How much has the company given back to the community People want to invest in socially responsible corporations Yes, if you want to be effective Basic means of control Technologically advanced societies: Indirect control devices Standardized rules Direct supervision Direct supervision Highly centralized decision making

Must controls be adjusted for cultural differences? o o

Less technologically advanced societies:

Employee Theft: Any unauthorized taking of company property by employees for their personal use. How to prevent theft o o Feed-forward: screening, establish policies Concurrent: treat employees with respect, openly communicate cost

Workplace Violence Working conditions can trigger violence o o o Treat people with dignity Make sure other employees treat each other with dignity 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 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 Managers Job 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.

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 o Organizations are considered global if they exchange goods and services with consumers in other countries Using managerial and technological employee talent from other countries o Managers must be aware of immigration laws 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

Multi-domestic Corporation: A type of MNC that decentralizes management and other decisions to the local country where its doing business Local employees are hired to manage the business and marketing strategies are tailored to that countrys unique characteristics

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

Transnational (Borderless) Organization: A structural arrangement for global organizations that eliminates artificial geographical borders We dont 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 o In addition an organization might do Importing: acquiring products made abroad and selling them domestically 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

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 o Can be managed as a multi-domestic organization (local control) or as a global organization (centralized control) 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 villagenor is it the dominant view held today Hofstedes Framework: Geert Hofstedes framework is one of the most widely referenced approaches for analyzing cultural variations. o o o o o Power distance (degree of power in institutions distributed unequally) Individualism versus collectivism Achievement versus nurturing (ach: value on money and comp. imp; nurt.: value rela. And show sensitivity to welfare of others) Uncertainty avoidance (prefer structed over unstuct. Situations) 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 o o o Assertiveness (encourages people to be tough and competitive) Future orientation (encourages & rewards future behavior (planning, investing in future, delaying gratification) Gender differences (max gender role differences) Uncertainty avoidance (societys reliance on social norms and procedures to alleviate the unpredictability of future events)

o o o

Power Difference (members of soc expect power to be unequally shared) Individualism/collectivism (encouraged to be integrated into groups w/in orgs and soc) In-group collectivism (members of soc take pride in membership in small groups [family, close friends, and orgs] in which they are employed)

o o

Performance Orientation (soc encourages & rewards group members for performance improvement and excellence) 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 firms 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 organizations 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

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

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 o o o o Free seats, had to know someone Gladiators forced to fight Violation of basic human rights, for entertainment

We all have rights but sometimes rights conflict Right to privacy, but also the right to free speech Is there some ethical principle that applies to all people, in all places, at all times? Ethics is not the same as legality Slavery People in the same condition should be treated the same way Racial profiling Treating people the same way can sometimes cause an ethical dilemma The justice view of ethics

Acting ethically yourself It is pointless to tell subordinates not to lie to each other, when you lie to the customers.

What is Todays Workforce Like and How Does it Impact the Way 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

Organizations are managed?

A polite or not offensive term that describes something troubling or disgusting Diversity an euphemism for race Racism is hardwired into all human beings

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

Stereotyping Taking a mental shortcut, picking out some characteristic and attributing it to an entire group Can be positive or negative Dont be deceived by the stereotype Find the talented individual

o o o o

Individuals are not diverse, groups are diverse The enduring lesson about generations is that they dont understand each other Be aware that generations do not understand each other and work around it, in order to communicate effectively 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 Make up 41.5% of the workforce Make up 29% of the workforce Make up almost 24% The baby boomers (those born between 1946 and 1964) Generation X (those born 1965 to 1977) Gen Y (those born 1978 to 1994)

What does the workforce look like today?

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

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

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 doesnt 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 o o NO EMPLOYEE WILL TREAT A CUSTOMER BETTER THAN THE EMPLOYEE IS TREATED Freedom to act and empower employees Give employees a certain amount of discretion o o Empowerment: when employees have decision-making discretion Learning how to listen to the customer Hire the right person for the job Make sure the job fits the person Find a match

Continuous improvement- Organizations 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 o o o o o o o

Determine if you can apply concepts Selection Training Organizing Empowerment Leadership Evaluation Rewards When will managers use Quantum Changes rather than Continuous Improvement?

Managerial actions that are needed:

Work process engineering: radical or quantum change in an organization

Chapter 4: Why do managers need to plan?

If you dont plan you wont accomplish anything Alice in wonderland, and the Cheshire cat o Where are you going little girl? I dont 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 o Tendency to stick to the plan even after the environment has changed Cannot replace intuition and creativity o o o Plans are a response to the present Intuition and creativity are of the future Cannot plan

Planners focus on todays competition, instead of on the future When people are successful they tend to get complacent 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 organizations strategies o Strategies: plans for how the organizations will do what its 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 organizations current mission, goals, and strategies STEP 2: External analysis Opportunities Threats

STEP 3: Internal analysis Resources organizations assets that it uses to develop, manufacture, and deliver products to its customers. Capabilities Organizations 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.

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 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.

Mission statement: a statement of an organizations purpose

SWOT Analysis: The combined external & internal analysis Strengths Weaknesses Opportunities external analysis Threats external analysis

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 its 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) Organizations 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 o Example: Payless Differentiation strategy: what an organization competes on the basis of having unique products that are widely valued by customers o Example: JimmyChoo 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 organizations 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 organizations members are doing. Setting goals

Traditional Goal Setting Goals set by top managers 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 dont 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 organizations mission and employees 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 o o How many new contracts do you think you will make in the next few months How much money do you think you will make 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 organizations 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 Telling someone the goal, and letting them figure out how to get there

Directional plans: plans that are flexible and set general guidelines o 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 o Top managers responsible for strategic planning 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 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 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

The process of starting new business, generally in response to opportunities Enterprise Entre preneurbetween 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 doesnt necessarily engage in any new or innovative practices and that has relatively little impact on its industry

entrepreneurship? -

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 o o Executive summery o o Brief Expected growth rate Know something about the economy and how it is regulated Know the consumer tastes Supply chain Distribution chain Currency exchange rate Create spreadsheet Covers at least 3 years Pro forma balance sheets Breakeven analysis Cost controls Available collateral Analysis of opportunity Analysis of the context

Description of the business

Financial data and projections

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 o o o o o o Sole proprietorship General partnership Limited liability partnership (LLP) C corporations S corporations Limited liability company (LLC) The Capitalist Manifesto Louis Kelso Some people are born with access to capital, most are not all we are left with is labor. Why cant 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 o Always have new ideas Like to be the one to make decisions

Employees Stock Ownership Plan (ESOP)

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 o o o o Functional departmentalization: grouping activities by function preformed Product departmentalization: grouping activities by major product areas Customer departmentalization: grouping activities by customer Geographic departmentalization: grouping activities on the basis of geography or territory Process departmentalization: grouping activities on the basis of work or customer flow What is todays 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 More thorough Advantages

Authority: the rights inherent in a managerial position to give orders and expect the orders to be obeyed o o If you give people the power to make decisions you give them authority 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 todays view of authority differ from the historical view? o o o Historical: they believed that managers were all powerful Enamored with authority Ones formal position in an organization were the sole source of influence

How do authority and power differ? o o Authority is a right, its legitimacy is based on an authority figures position in the organization; goes with the job Power: an individuals 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 ones position in that formal hierarchy Expert power: based on ones 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 o Wide set of control: not very controlled, mostly left to their own devices 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 organizations jobs are and the extent to which employees behavior is guided by rules and procedures o Policies are written down

o o

It is impossible to write a rule that covers every situation 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 thats high in centralization, formalization, and centralization o o o o o o Rigid hierarchical relationships Fixed duties Many rules Formalized communication channels Centralized decision authority Taller structures

Organic organization: a structure thats low in specialization, formalization, and centralization o o o o o o Collaboration (both vertical and horizontal) Adaptable duties few rules informal communication decentralized decision authority flatter structures Three different types of production Unit production: making one unit at a time Organic Mechanistic Organic Mass production: large-batch manufacturing Process production: continuous production

How does technology affect structure? o

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 o Strengths: fast, flexible; inexpensive to maintain; clear accountability Weaknesses: not appropriate as organization grows; reliance on one person is risky Functional Structure: groups similar or related occupational specialties

Strengths: cost-saving advantages from specialization (economies of scale, minimal duplication of people and equipment); employees are grouped with others who have similar tasks

Weaknesses: pursuit of functional goals can cause managers to lose sight of whats 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 resultsdivision managers are responsible for what happens to their products and services

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 o o Assigns specialists from different functional areas to work on projects but who return to their areas when the project is complete Continuously work on projects 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 o Strengths: employees are more involved and empowered. Reduced barriers among functional areas 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 o Strengths: highly flexible and responsive; utilizes talent wherever it is found 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 todays 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 o Develop a culture that encourages the sharing of information Beware of information hording; using information politically to make oneself look better and others look dumb Characteristics of a Learning Organization: o o o o Organizational Design Boundary-less, Teams, Empowerment Information Sharing Open, Timely, Accurate Leadership Shared Vision, Collaboration Organiz. Culture Strong mutual relationships, caring, trust, sense of community.

What is an Organizations 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 Organizations 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: o These 3 are used in identification and selection of competent employees. Orientation and Training and Development: o These 2 are for: adapted and competent employees with up-todate skills, knowledge, and abilities. 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 companys 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

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 entrylevel positions Temporary help services Fill temporary needs / expensive Do exhibit 6-1 first Make sure the functional goals of the HR department match the organizational goals

What is the Human Resource Management Process and What Influences It?

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 o Selection Decision Outcomes: Exhibit 6-5 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 o Reduces anxiety Find out organization, and work unit goals Seeds up the introduction process

What is Employee Training? 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 organizations 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 o o

Performance Appraisal Methods Exhibit 6-8 Asking the HR department to fire people Too many managers are cowards 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 o Simple to use More a measure of evaluators writing ability than of employees actual performance Critical Incidents o o o o o Rich examples; behaviorally based Time-consuming; lack of quantification Provide quantitative data; less time-consuming Do not provide depth of job behavior assessed Focus on specific and measurable job behaviors Time-consuming; difficult to develop measures Compares employees with one another Unwieldy with large number of employees Focuses on end goals; results oriented Time-consuming; intimidation by the boss(expectations to high)

Graphic Rating Scale

BARS (Behaviorally Anchored Rating Scale)

Multiperson

MBO (Management by Objectives)

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 Fs get let go As get bonuses

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 Employees Performance is not up to Par? o o o Discipline: actions taken by a manager to enforce an organizations standards and regulations Employee Counseling: a process designed to help employees overcome performance-related problems Managers need to keep documentation of problem incidents, so as to avoid legal problems for firing someone

How are Employees Compensated? o o The challenge facing compensation managers is to pay people just enough to keep them motivated and working, while minimizing cost Compensation Administration: the process of determining a costeffective 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 individuals 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 o Euphemism for firing people Thompson: failure of manager

Layoff-Survivor Sickness: a set of attitudes, perceptions, and behaviors of employees who survive layoffs

 Careers

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.

Boundryless Careers: entire career with a company Old philosophy: a lot of jobs means you are incompetent

Chapter 7: Managing Change and Innovation 30/04/2012 13:32:00

What is Change and How Do Managers Deal with It? Organizational Change: any alteration of an organizations people, structure, or technology An industries external changes result in the internal changes of the company o Structure o o People o Attitudes Expectations Perceptions Behavior Authority relationships Coordinating mechanisms Job redesign Spans of control Work processes Work methods Equipment

Technology

Who initiates Organizational Change? 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 o the railroad industry 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 o o o Change replaces the known with uncertainty We do things out of habit The fear of loosing something already possessed 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 o o o o o

Education and Communication Participation Facilitation and Support Negotiation Manipulation and Co-optation 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 o Physical: changes in metabolism, increased heart and breathing rates, raised blood pressure, headaches, and potential of heart attacks Behavioral: changes in productivity, absenteeism, job turnover, changes in eating habits, increased smoking or consumption of alcohol, rapid speech fidgeting and sleep disorders o o Psychological: job-related dissatisfaction, tension, anxiety, irritability, boredom, and procrastination Karoshi: Japanese term that refers to a sudden death caused by overworking What Causes Stress? o o o o o o Stressors: factors that cause stress Role Conflicts: work expectations that are hard to satisfy Role Overload: having more work to accomplish than time permits Role Ambiguity: when role expectations are not clearly understood Type A Personality: people who have a chronic sense of urgency and an excessive competitive drive Type B Personality: people who are relaxed and easygoing and accept change easily How Can Stress Be Reduced

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 o o o o o Perception Incubation Inspiration Innovation Make it safe to fail Structural Variables Organic Structure Abundant Resources High Interunit Communication Minimal Time Pressure Work and Nonwork Support

How do You Foster Innovation? Innovation Stimulants

Cultural Variables Acceptance of Ambiguity Tolerance of the Impractical Low External Controls Tolerance of Conflict Focus on the End Open-System Focus Positive Feedback High Commitment to training and development High job security Creative people

Human Resource Variables

Foundations of Behavior/ Industry of Organizational Psychology: MGMT 452 Why should you care o Absenteeism o Turnover Organizations Citizen Behavior o Demonstrate how to behave o Behave how you want your employees to behave Job Satisfaction o Satisfaction and productivity are correlated o 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 Cognitive o Emotional o Behavioral o 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 doesnt 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