Organizationalbehavior 638slidespresentation 090903124620 Phpapp02

Organizational Behavior
Schermerhorn, Schermerhorn, Hunt, and Osborn

Prepared by Michael K. McCuddy Valparaiso University
Chapter 1 Study Questions

What is organizational behavior and why is it important? What are organizations like as work settings? What is the nature of managerial work? How do we learn about organizational behavior?
Organizational Behavior: Chapter 1 2
Study Question 1: What is organizational behavior and why is it important? Workplace success depends on:
Respect for people. Understanding of human behavior in complex
organizational systems.
Individual commitment to flexibility,
creativity, and learning.

Individual willingness to change.
Study Question 1: What is organizational behavior and why is it important? Organizations and their members are challenged to:
Simultaneously achieve high performance and
high quality of life. Embrace ethics and social responsibility. Respect the vast potential of demographic and cultural diversity among people. Recognize the impact of globalization.
Study Question 1: What is organizational behavior and why is it important? Organizational behavior. Study of human behavior in organizations. A multidisciplinary field devoted to understanding individual and group behavior, interpersonal processes, and organizational dynamics.
Study Question 1: What is organizational behavior and why is it important?
Pick up Figure 1.1 from the textbook.
Organizational Behavior: Chapter 1
Study Question 1: What is organizational behavior and why is it important? Reasons for importance of scientific thinking. The process of data collection is controlled and systematic. Proposed explanations are carefully tested. Only explanations that can be scientifically verified are accepted.
Study Question 1: What is organizational behavior and why is it important?

Contingency approach. Tries to identify how different situations can be best understood and handled. Important contingency variables include:
Environment. Technology. Tasks. Structure. People.
Study Question 1: What is organizational behavior and why is it important? Modern workplace trends.
Commitment to ethical behavior. Importance of human capital. Demise of command and control. Emphasis on teamwork. Pervasive influence of information technology. Respect for new workforce expectations. Changing definition of jobs and career.

Study Question 2: What are organizations like as work settings?
An organization is a collection of people working together in a division of labor to achieve a common purpose.
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Study Question 2: What are organizations like as work settings? The core purpose of an organization is the creation of goods and services. Missions and mission statements focus attention on the core purpose. Mission statements communicate:
A clear sense of the domain in which the
organizations products and services fit. A vision and sense of future aspirations.
Study Question 2: What are organizations like as work settings? A strategy is a comprehensive plan that guides organizations to operate in ways that allow them to outperform their competitors. Key managerial responsibilities include strategy formulation and implementation. Knowledge of OB is essential to effectively strategy implementation.
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Study Question 2: What are organizations like as work settings? Stakeholders.

People, groups, and institutions having an
interest in an organizations performance. Customers, owners, employees, suppliers, regulators, and local communities are key stakeholders. Interests of multiple stakeholders sometimes conflict. Executive leadership often focuses on balancing multiple stakeholder expectations.

Organizational culture and diversity.
Organizational culture refers to the shared beliefs and
values that influence the behavior of organizational members. Positive organizational cultures:

Have a high-performance orientation. Emphasize teamwork. Encourage risk taking. Emphasize innovation.. Respect people and workforce diversity.
Success in business world is tied to valuing diversity.

Study Question 2: What are organizations like as work settings? Organizational effectiveness approaches. Systems resource approach focuses on inputs. Internal process approach focuses on the transformation process. Goal approach focuses on outputs. Strategic contingencies approach focuses on impact on key stakeholders.
Study Question 2: What are organizations like as work settings? Longitudinal views of organizational effectiveness.
Short-run emphasis on goal accomplishment,
resource utilization, and stakeholder satisfaction. Intermediate-run emphasis on organizations adaptability and development potential. Long-run emphasis on survival.
Study Question 3: What is the nature of managerial work?

Managers perform jobs that involve
directly supporting the work efforts of others.

Managers assume roles such as
coordinator, coach, or team leader.


The management process.
An effective manager is one whose
organizational unit, group, or team consistently achieves its goals while its members remain capable, committed, and enthusiastic. Key results of effective management:
Task performance. Job satisfaction.
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The nature of managerial work.
Managers work long hours. Managers are busy people. Managers are often interrupted. Managerial work is fragmented and variable. Managers work mostly with other people. Managers spend a lot of time communicating.
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Managerial mind-sets.
Reflective mind-set managing ones self. Analytic mind-set managing organizational
operations and decisions.

Worldly mind-set managing in a global context. Collaborative mind-set managing relationships. Action mind-set managing change.

Managerial skills and competencies.
A skill is an ability to translate knowledge into
action that results in a desired performance.

Categories of skills.
Technical. Human. Conceptual.
Study Question 4: How do we learn about organizational behavior?

Learning is an enduring change in behavior that results from experience. Organizational learning is the process of acquiring knowledge and utilizing information to adapt successfully to changing circumstances.
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What is a high-performance organization? What is multiculturalism, and how can workforce diversity be managed? How do ethics and social responsibility influence human behavior in organizations? What are key OB transitions in the new workplace?
Study Question 1: What is a highperformance organization?

High-performance organizations.
Value and empower people, and respect diversity. Mobilize the talents of self-directed work teams. Use cutting-edge technologies to achieve success. Thrive on learning and enable members to grow and
develop. Are achievement-, quality-, and customer-oriented, as well as being sensitive to the external environment.
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Study Question 1: What is a highperformance organization? Stakeholders.

The individuals, groups, and other
organizations affected by an organizations performance.
Value creation.
The extent to which an organization
satisfies the needs of strategic constituencies.

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Total quality management (TQM).
A total commitment to:
High-quality results. Continuous improvement. Customer satisfaction.
Meeting customers needs. Doing all tasks right the first time. Continuous improvement focuses on two questions:
Is it necessary? If so, can it be done better?

Human capital.
The economic value of people with job-relevant
abilities, knowledge, ideas, energies, and commitments.
Knowledge workers.
People whose minds rather than physical capabilities
create value for the organization.
Intellectual capital.
The performance potential of the expertise,
competencies, creativity, and commitment within an organizations workforce.


Empowerment.
Allows people, individually and in groups, to
use their talents and knowledge to make decisions that affect their work.
Social capital.
The performance potential represented in the
relationships maintained among people at work.


Learning and high-performance cultures.
Uncertainty highlights the importance of
organizational learning. High-performance organizations are designed for organizational learning. A learning organization has a culture that values human capital and invigorates learning for performance enhancement.
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Study Question 2: What is multi-culturalism, and how can workforce diversity be managed? Workforce diversity.
Describes differences among people with respect to
age, race, ethnicity, gender, physical ability, and sexual orientation.
Multiculturalism.
Refers to pluralism and respect for diversity and
individual differences in the workplace.
Inclusivity.
The degree to which the organizations culture
respects and values diversity.

Study Question 2: What is multi-culturalism, and how can workforce diversity be managed?
Diversity biases in the workplace.

Prejudice. Discrimination. The glass ceiling effect. Sexual harassment. Verbal abuse. Pay discrimination.
Study Question 2: What is multi-culturalism, and how can workforce diversity be managed?
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Study Question 2: What is multi-culturalism, and how can workforce diversity be managed? Managing diversity.
Developing a work environment and organizational
culture that allows all organization members to reach their full potential.
A diversity mature organization is created when:

Managers ensure the effective and efficient utilization
of employees in pursuit of the corporate mission. Managers consider how their behaviors affect diversity.
Well-managed workforce diversity increases human capital.

Study question 3: How do ethics and social responsibility influence human behavior in organizations?
Ethical behavior.
Good or right as opposed to bad
or wrong in a particular setting.
The public demands that people in organizations act according to high moral standards.
Study question 3: How do ethics and

social responsibility influence human behavior in organizations? Immoral managers.
Do not subscribe to any ethical principles;
pursuit of self-interest.
Amoral managers.
Ethics is simply not on this managers radar
screen.
Moral managers.
Incorporate ethical principles and goals into
their personal behavior .

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Study question 3: How do ethics and social responsibility influence human behavior in organizations? Ways of thinking about ethical behavior.
Utilitarian view the greatest good for the
greatest number of people. Individualism view best serving long-term self-interests. Moral-rights view respects and protects the fundamental rights of all human beings. Justice view fair and impartial in the treatment of all people.
Study question 3: How do ethics and social responsibility influence human behavior in organizations? Different types of justice.
Procedural justice properly following rules
and procedures in all cases.

Distributive justice treating people the
same under a policy, regardless of demographic differences.

Interactional justice treating people affected
by a decision with dignity and respect.

Ethical dilemmas. Occur when someone must choose whether or not to pursue a course of action that, although offering the potential of personal or organizational benefit or both, may be considered unethical.
Study question 3: How do ethics and social responsibility influence human behavior in organizations? Rationalizations for unethical behavior.
Pretending the behavior is not really unethical
or illegal. Saying the behavior is really in the organizations or persons best interest. Assuming the behavior is acceptable if others dont find out about it. Presuming that superiors will support and protect you.
Study question 3: How do ethics and social responsibility influence human behavior in organizations? Organizational social responsibility.
The obligation of organizations to behave in
ethical and moral ways as institutions of the broader society. Managers should commit organizations to: Pursuit of high productivity. Corporate social responsibility. A whistleblower exposes others wrongdoings in order to preserve high ethical standards.
Study question 4: What are key OB transitions in the new workplace?

Corporate governance and ethics leadership.
Society expects and demands ethical decisions
and actions from businesses and other social institutions. Corporate governance.
The active oversight of management decisions,
corporate strategy, and financial reporting by Boards of Directors.


Corporate governance and ethics leadership (cont.).
Ethics leadership. Making business and organizational decisions with high moral standards that meet the ethical test of being good and not bad, and of being right and not wrong. . Integrity. Acting in ways that are always honest, credible, and consistent in putting ones values into practice.

Positive organizational behavior.
Quality of work life. The overall quality of human experience in the workplace. Commitment to quality of work life is an important value within organizational behavior. Theory Y provides the theoretical underpinnings for contemporary quality of work life concepts.
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Positive organizational behavior (cont.).
Positive organizational behavior focuses on
practices that value human capacities and encourage their full utilization. Positive organizational behavior is based on the core capacities of:

Confidence. Hope. Optimism. Resilience.


Globalization, job migration, and organizational transformation.
Globalization. The worldwide interdependence of resource flows, product markets, and business competition. Job migration. The shifting of jobs from one nation to another.
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Globalization, job migration, and organizational transformation (cont.).
Global outsourcing. Involves employers cutting back on domestic jobs and replacing them with contract workers in other nations. Job migration and global outsourcing have
contributed to organizations redesigning themselves for high performance in a changed world.


Personal management and career planning.
Shamrock organizations.
Relatively small core group of permanent, full-time
employees with critical skills.

Outside operators contracting to core group to
perform essential daily activities.

Part-timers hired by core group on an as-needed
basis.

Personal management and career planning (cont.).
Personal management. Understand ones self, exercising initiative, accepting responsibility, working well with others, and continually learning from experience. Self-monitoring. Observing and reflecting on ones own behavior and acting in ways that adapt to the situation.

Why is globalization significant for organizational behavior? What is culture and how can we understand cultural differences? How does cultural diversity affect people at work? What is a global view on organizational learning?
Study Question 1: Why is globalization significant for organizational behavior?

Most organizations must achieve high performance within a complex and competitive global environment. Globalization refers to the complex economic networks of international competition, resource suppliers, and product markets.
Study Question 1: Why is globalization significant for organizational behavior? Forces of globalization.
Rapid growth in information technology and
electronic communication. Movement of valuable skills and investments. Increasing cultural diversity. Implications of immigration. Increasing job migration among nations. Impact of multicultural workforces.
Study Question 1: Why is globalization significant for organizational behavior? Globalization is contributing to the emergence of regional economic alliances. Important regional alliances.
European Union (EU). North American Free Trade Agreement
(NAFTA). Asia-Pacific Economic Co-operation Forum (APEC).

Study Question 1: Why is globalization significant for organizational behavior? Outsourcing.

Contracting out of work rather than accomplishing it
with a full-time permanent workforce.
Off shoring.
Contracting out work to persons in other countries.
Job migration.
Movement of jobs from one location or country to
another.
Study Question 1: Why is globalization significant for organizational behavior? Global managers.
Know how to conduct business in multiple
countries. Are culturally adaptable and often multilingual. Think with a worldview and are able to map strategy in the global context. Have a global attitude. Have a global mindset.
Study Question 1: Why is globalization significant for organizational behavior? Culture.

The learned, shared way of doing things in a
particular society. The software of the mind. Helps define boundaries between different groups and affects how their members relate to one another. Cultural intelligence is the ability to identify, understand, and act with sensitivity and effectiveness in cross-cultural situations.
Study Question 2: What is culture and how can we understand cultural differences?
Language.
Perhaps the most visible aspect of culture. Whorfian hypothesis considers language as
a major determinant of thinking. Low-context cultures the message is conveyed by the words used. High-context cultures words convey only a limited part of the message.
Time orientation.
Polychronic cultures. Circular view of time. No pressure for immediate action or performance. Emphasis on the present. Monochronic cultures. Linear view of time. Create pressure for action and performance. Long-range goals and planning are important.
Use of space.
Proxemics. The study of how people use space to communicate. Reveals important cultural differences. Concept of personal space varies across
cultures. Space is arranged differently in different cultures.

Religion.
A major element of culture. Can be a very visible aspect of culture. Influences codes of ethics and moral behavior. Influences conduct of economic matters.
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Values and national culture.

Cultures vary in underlying patterns of values
and attitudes. Hofstedes five dimensions of national culture:

Power distance. Uncertainty avoidance. Individualism-collectivism. Masculinity-femininity. Long-term/short-term orientation.

Power distance.
The willingness of a culture to accept status
and power differences among members. Respect for hierarchy and rank in organizations. Example of a high power distance culture Indonesia. Example of a low power distance culture Sweden.
Uncertainty avoidance.
The cultural tendency toward discomfort with
risk and ambiguity. Preference for structured versus unstructured organizational situations. Example of a high uncertainty avoidance culture France. Example of a low uncertainty avoidance culture Hong Kong.
Individualism-collectivism.
The cultural tendency to emphasize individual
or group interests. Preferences for working individually or in groups. Example of an individualistic culture United States. Example of a collectivist culture Mexico.
Masculinity-femininity.
The tendency of a culture to value
stereotypical masculine or feminine traits. Emphasizes competition/assertiveness versus interpersonal sensitivity/relationships. Example of a masculine culture Japan. Example of a feminine culture Thailand.
Long-term/short-term orientation.
The tendency of a culture to emphasize future-
oriented values versus present-oriented values. Adoption of long-term or short-term performance horizons. Example of a long-term orientation culture South Korea. Example of a short-term orientation culture United States.
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Understanding cultural differences helps in dealing with parochialism and ethnocentrism.

Parochialism assuming that the ways of
ones own culture are the only ways of doing things. Ethnocentrism assuming that the ways of ones culture are the best ways of doing things.
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Cultural differences in handling relationships with other people.

Universalism versus particularism. Relative emphasis on rules and consistency, or on relationships and flexibility. Individualism versus collectivism. Relative emphasis on individual freedom and responsibility, or on group interests and consensus.
Cultural differences in handling relationships with other people (cont.).

Neutral versus affective. Relative emphasis on objectivity and detachment, or on emotion and expressed feelings. Specific versus diffuse. Relative emphasis on focused and narrow involvement, or on involvement with the whole person.
Cultural differences in handling relationships with other people (cont.).

Achievement versus prescription. Relative emphasis on performance-based and earned status, or on ascribed status.
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Cultural differences in attitudes toward time.

Sequential view of time.
Time is a passing series of events.
Synchronic view of time.

Time consists of an interrelated past, present, and
future.
Cultural differences in attitudes toward the environment.

Inner-directed cultures. Members view themselves as separate from nature and believe they can control it. Outer-directed cultures. Members view themselves as part of nature and believe they must go along with it.
Study Question 3: How does cultural diversity affect people at work? Multinational corporation (MNC).
A business firm that has extensive
international operations in more than one foreign country. Have a total world view without allegiance to any one national home. Have enormous economic power and impact. Bring benefits and controversies to host countries.
Study Question 3: How does cultural diversity affect people at work? Multicultural workforces and expatriates.
Styles of leadership, motivation, decision
making, planning, organizing, and controlling vary from country to country. Expatriates.
People who live and work abroad for extended
periods of time. Can be very costly for employers. Progressive employers take supportive measures to maximize potential for expatriate success.
Study Question 3: How does cultural diversity affect people at work?
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Study Question 3: How does cultural diversity affect people at work? Ethical behavior across cultures.
Ethical challenges result from: Cultural diversity. Variations in governments and legal systems. Prominent current issues. Corruption and bribery. Poor working conditions. Child and prison labor. Business support of repressive governments. Sweatshops.
Study Question 3: How does cultural diversity affect people at work?
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Study Question 3: How does cultural diversity affect people at work? Advice regarding cultural relativism and ethical absolutism.
Multinational businesses should adopt core or
threshold values that respect and protect fundamental human rights.

Beyond the threshold, businesses should adapt
and tailor actions to respect the traditions, foundations, and needs of different cultures.
Study Question 4: What is a global view on organizational learning?

Organizational learning.
The process of acquiring the knowledge
necessary to adapt to a changing environment.
Global organizational learning.

The ability to gather from the world at large
the knowledge required for long-term organizational adaptation.


Are management theories universal?
Answer is no. Cultural influences should be carefully
considered in transferring theories and their applications across cultures.
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Best practices around the world.
Global organizational learning should identify
best practices around the world.

Potential high-performance benchmarks exist
throughout the world.

Cultural diversity enriches global organization
learning.

What is personality? How do personalities differ? What are value and attitude differences among individuals, and why are they important? What are individual differences and how are they related to workforce diversity?
Study Question 1: What is personality? Personality.

The overall profile or combination of
characteristics that capture the unique nature of a person as that person reacts and interacts with others. Combines a set of physical and mental characteristics that reflect how a person looks, thinks, acts, and feels. Predictable relationships are expected between peoples personalities and their behaviors.
Study Question 1: What is personality?
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Heredity and environment.
Heredity sets the limits on the development of
personality characteristics. Environment determines development within these limits. About a 50-50 heredity-environment split. Cultural values and norms play a substantial role in the development of personality. Social factors include family life, religion, and many kinds of formal and informal groups. Situational factors reflect the opportunities or constraints imposed by the operational context.
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Study Question 1: What is personality? Personality and the self-concept.

Personality dynamics. The ways in which an individual integrates and organizes social traits, values and motives, personal conceptions, and emotional adjustments. Self-concept. The view individuals have of themselves as physical, social, and spiritual or moral beings. Self-esteem. Self-efficacy.
Study Question 2: How do personalities differ?

Big Five personality dimensions.
Extraversion
Being outgoing, sociable, assertive.
Agreeableness.
Being good-natured, trusting, cooperative.
Conscientiousness.
Being responsible, dependable, persistent.
Emotional stability.
Being unworried, secure, relaxed.
Openness to experience.
Being imaginative, curious, broad-minded.
Study Question 2: How do personalities differ? Social traits.

Surface-level traits that reflect the way a
person appears to others when interacting in various social settings.

An important social trait is problem-solving
style.
The way a person goes about gathering and
evaluating information in solving problems and making decisions.

Study Question 2: How do personalities differ? Information gathering in problem solving.

Getting and organizing data for use. Sensation-type individuals prefer routine and
order and emphasize well-defined details in gathering information.

Intuitive-type individuals like new problems
and dislike routine.

Study Question 2: How do personalities differ? Information evaluation in problem solving.

Making judgments about how to deal with
information once it has been collected. Feeling-type individuals are oriented toward conformity and try to accommodate themselves to other people. Thinking-type individuals use reason and intellect to deal with problems and downplay emotions.
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Study Question 2: How do personalities differ? Personal conception traits.

The way individuals tend to think about their
social and physical settings as well as their major beliefs and personal orientation. Key traits.

Locus of control. Authoritarianism/dogmatism. Machiavellianism. Self-monitoring.

Study Question 2: How do personalities differ? Locus of control.

The extent to which a person feels able to
control his/her own life. Externals.

More extraverted in their interpersonal
relationships and more oriented toward the world around them.
Internals. More introverted and more oriented towards their own feelings and ideas.
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Study Question 2: How do personalities differ? Authoritarianism/dogmatism.

Authoritarianism.
Tendency to adhere rigidly to conventional values
and to obey recognized authority.
Dogmatism.
Tendency to view the world as a threatening place.
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People with a high-Machiavellian personality: Approach situations logically and thoughtfully. Are capable of lying to achieve personal goals. Are rarely swayed by loyalty, friendships, past promises, or others opinions. Are skilled at influencing others. Try to exploit loosely structured situations. Perform in a perfunctory or detached manner in highly structured situations.

People with a low-Machiavellian personality:
Accept direction imposed by others in loosely
structured situations.
Work hard to do well in highly structured
situations.
Are strongly guided by ethical considerations. Are unlikely to lie or cheat.
Study Question 2: How do personalities differ? Self-monitoring.

A persons ability to adjust his/her behavior to
external situational factors. High self-monitors.

Sensitive to external cues. Behave differently in different situations.
Low self-monitors. Not sensitive to external cues. Not able to disguise their behaviors.
Study Question 2: How do personalities differ? Emotional adjustment traits.

How much an individual experiences distress
or displays unacceptable acts. Type A orientation.

Characterized by impatience, desire for
achievement, and perfectionism.
Type B orientation. Characterized as more easygoing and less competitive in relation to daily events.
Study Question 3: What are value and attitude differences among individuals, and why are they important?
Values.
Broad preferences concerning appropriate
courses of action or outcomes. Values influence behavior and attitudes. Parents, friends, teachers, and external reference groups can influence individual values. Values develop as a product of learning and experiences.
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Gordon Allports values categories.

Theoretical values. Economic values. Aesthetic values. Social values. Political values. Religious values.
Maglinos categories of workplace values.

Achievement. Helping and concern for others. Honesty. Fairness.
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Attitudes.
Are influenced by values and are acquired
from the same sources as values.

Are more specific and less stable than values. An attitude is a predisposition to respond in a
positive or negative way to someone or something in ones environment.

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The attitude-behavior relationship is stronger when:

Attitudes and behaviors are more specific. There is freedom to carry out the behavioral
intent.
The person has experience with the attitude.
Attitudes and cognitive consistency.

Cognitive dissonance. Describes a state of inconsistency between an individuals attitudes and his or her behavior. Cognitive dissonance can be reduced by: Changing the underlying attitude. Changing future behavior. Developing new ways of explaining or rationalizing the inconsistency.
Attitudes and cognitive consistency (cont.).

Dissonance reduction choices are influenced
by:
The degree of control a person has over the
situation.
The magnitude of the rewards involved.
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Study Question 4: What are individual differences and how are they related to workforce diversity?
Workforce diversity.
The presence of individual human
characteristics that make people different from one another.
Challenge of workforce diversity.

Respecting individuals perspectives and
contributions and promoting a shared sense of organizational vision and identity.

As workforce diversity increases, the possibility of stereotyping and discrimination increases.

Demographic characteristics may serve as the
basis for stereotypes.

Equal employment opportunity.

Nondiscriminatory employment decisions.
No intent to exclude or disadvantage legally
protected groups.
Affirmative action.
Remedial actions for proven discrimination or
statistical imbalance in workforce.

Study Question 4: What are individual differences and how are they related to workforce diversity? Demographic characteristics.
The background characteristics that help shape what a
person becomes.
Important demographic characteristics for the workplace.

Gender. Age. Able-bodiedness. Race. Ethnicity.

Gender.
No consistent differences between men and
women in:

Problem-solving abilities. Analytical skills. Competitive drive. Motivation. Learning ability. Sociability.
Gender (cont.).
As compared to men, women:
Are more conforming. Have lower expectations of success. Have higher absenteeism. Are more democratic as leaders.
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Study Question 4: What are individual differences and how are they related to workforce diversity? Age.
Aging workforce. Older workers are more susceptible to stereotyping. Age discrimination lawsuits are increasingly common
in the United States.

Small businesses tend to value older workers. Experienced workers, who are usually older, tend to
perform well, be absent less, and have low turnover.

Able-bodiedness.
Despite evidence of effective job performance,
most disabled persons are unemployed.

Most disabled persons want to work. More firms are likely to hire disabled workers
in the future.
Racial and ethnic groups.

African Americans, Asian Americans, and
Hispanic Americans make up an everincreasing percentage of the American workforce.

Potential for stereotypes and discrimination
can adversely affect career opportunities.

Race cannot be a BFOQ.
Important lessons regarding demographic characteristics.

Respect and deal with the needs and concerns
of people with different demographics.

Avoid linking demographics to stereotypes. Demography is not a good indicator of
individual-job fits.
Aptitude.
A persons capability of learning something.
Ability.
A persons existing capacity to perform the
various tasks needed for a given job.

Includes relevant knowledge and skills.
Chapter 5 Study Questions What is the perception process? What are common perceptual distortions? How can perceptions be managed? What is attribution theory?
Study Question 1: What is the perception process?

Perception.
The process by which people select, organize,
interpret, retrieve, and respond to information.

People process information inputs into
responses involving feeling and action.

The quality or accuracy of a persons
perceptions has a major impact on responses.

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Information attention and selection.
Selective screening.
Lets in only a tiny portion all the information that
is available.
Two types of selective screening.

Controlled processing. Screening without perceivers conscious
awareness.

Organization of information.
Schemas. Cognitive frameworks that represent organized knowledge about a given concept or stimulus developed through experience. Types of schemas: Self schemas. Person schemas. Script schemas. Person-in-situation schemas.

Information interpretation.
Uncovering the reasons behind the ways
stimuli are grouped.

People may interpret the same information
differently or make different attributions about information.


Information retrieval.
Attention and selection, organization, and
interpretation are part of memory.

Information stored in memory must be
retrieved in order to be used.

Study Question 2: What are common perceptual distortions?
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Stereotypes or prototypes.
Combines information based on the category
or class to which a person, situation, or object belongs.

Individual differences are obscured. Strong impact at the organization stage.

Halo effects.
Occur when one attribute of a person or
situation is used to develop an overall impression of the individual or situation.

Likely to occur in the organization stage. Important in the performance appraisal
process.

Selective perception.
The tendency to single out those aspects of a
situation, person, or object that are consistent with ones needs, values, or attitudes.
Strongest impact is at the attention stage. Perception checking with other persons can
help counter the adverse impact of selective perception.


Projection.
The assignment of ones personal attributes to
other individuals.
Especially likely to occur in interpretation
stage.
Projection can be controlled through a high
degree of self-awareness and empathy.


Contrast effects.
Occur when an individual is compared to other
people on the same characteristics on which the others rank higher or lower.
People must be aware of the impact of contrast
effects in many work settings


Self-fulfilling prophecy.
The tendency to create or find in another
situation or individual that which one expected to find. Also called the Pygmalion effect. Can have either positive or negative outcomes. Managers should adopt positive and optimistic approaches to people at work.
Study Question 3: How can perceptions be managed?

Impression management.
A persons systematic attempt to behave in
ways that create and maintain desired impressions in others eyes. Successful managers:
Use impression management to enhance their own
images. Are sensitive to other peoples use of impression management.

Study Question 3: How can perceptions be managed?

Distortion management.
Managers should:
Balance automatic and controlled information
processing at the attention and selection stage.

Broaden their schemas at the organizing stage. Be attuned to attributions at the interpretation
stage.
Study Question 4:What is attribution theory?

Attribution theory aids in perceptual interpretation by focusing on how people attempt to:
Understand the causes of a certain event. Assess responsibility for the outcomes of the
event. Evaluate the personal qualities of the people involved in the event.

Factors influencing internal and external attributions.
Distinctiveness consistency of a persons
behavior across situations. Consensus likelihood of others responding in a similar way. Consistency whether an individual responds the same way across time.

Fundamental attribution error.
Applies to the evaluation of someones else
behavior.
Attributing success to the influence of
situational factors.
Attributing failure to the influence of personal
factors.

Self-serving bias.
Applies to the evaluation of our own behavior. Attributing success to the influence of
personal factors.
Attributing failure to the influence of
situational factors.

Techniques for effectively managing perceptions and attributions.
Be self-aware. Seek a wide range of differing information. Try to see a situation as others would. Be aware of different kinds of schemas. Be aware of perceptual distortions. Be aware of self and impression management. Be aware of attribution theory implications.

What is motivation?
What do the content theories suggest about individual needs and motivation? What do the process theories suggest about individual motivation? What are reinforcement theories and how are they linked to motivation?
Study Question 1:What is motivation?

Motivation refers to forces within an individual that account for the level, direction, and persistence of effort expended at work.
Direction an individuals choice when presented
with a number of possible alternatives.

Level the amount of effort a person puts forth. Persistence the length of time a person stays with a
given action.
Study Question 1:What is motivation?

Categories of motivation theories.
Content theories. Focus on profiling the needs that people seek to
fulfill.
Process theories. Focus on peoples thought or cognitive processes. Reinforcement theories. Emphasize controlling behavior by manipulating
its consequences.
Study Question 2: What do the content theories suggest about individual needs and motivation? Content theories.
Motivation results from the individuals attempts to
satisfy needs.
Major content theories.

Hierarchy of needs theory. ERG theory. Acquired needs theory. Two-factor theory.
Each theory offers a slightly different view.

Study Question 2: What do the content theories suggest about individual needs and motivation?
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ERG theory.
Existence needs.
Desire for physiological and material well-being.
Relatedness needs.
Desire for satisfying interpersonal relationships.
Growth needs.
Desire for continued personal growth and
development.
Study Question 2: What do the content theories suggest about individual needs and motivation? Acquired needs theory.
Need for achievement (nAch).
The desire to do something better or more efficiently, to solve
problems, or to master complex tasks.
Need for affiliation (nAff).

The desire to establish and maintain friendly and warm
relations with others.
Need for power (nPower).

The desire to control others, to influence their behavior, or to
be responsible for others.
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Study Question 3: What do the process theories suggest about individual motivation?
Process theories.
Focus on the thought processes through which
people choose among alternative courses of action.
The chapter focuses on two process theories:

Equity theory. Expectancy theory.
Study Question 3: What do the process theories suggest about individual motivation? Equity theory.
People gauge the fairness of their work outcomes in
relation to others.
Felt negative inequity. Individual feels he/she has received relatively less
than others in proportion to work inputs.

Felt positive inequity. Individual feels he/she has received relatively more
than others in proportion to work inputs.

Equity restoration behaviors.

Change work inputs. Change the outcomes received. Leave the situation. Change the comparison person. Psychologically distort the comparisons. Take actions to change the inputs or outputs of
the comparison person.

Study Question 3: What do the process theories suggest about individual motivation? Coping methods for dealing with equity comparisons.
Recognize that equity comparisons are inevitable in the
workplace.
Anticipate felt negative inequities when rewards are given. Communicate clear evaluations for any rewards given. Communicate an appraisal of performance on which the reward
is based.
Communicate comparison points that are appropriate in the
situation
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Study Question 3: What do the process theories suggest about individual motivation? A persons motivation is a multiplicative function of expectancy, instrumentality, and valence (M = E x I x V). Motivational implications of expectancy theory.
Motivation is sharply reduced when, expectancy,
instrumentality, or valence approach zero. Motivation is high when expectancy and instrumentality are high and valence is strongly positive.
Extrinsic rewards.
Positively valued work outcomes given to the
individual by some other person.
Intrinsic rewards.
Positively valued work outcomes that the
individual receives directly as a result of task performance.
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Guidelines for the distribution of extrinsic rewards.

Clearly identify the desired behaviors. Maintain an inventory of rewards that have the
potential to serve as positive reinforcers. Recognize individual differences in the rewards that will have a positive value for each person.
Study Question 3: What do the process theories suggest about individual motivation? Guidelines for the distribution of extrinsic rewards (cont.).
Let each person know exactly what must be done to
receive a desirable reward; set clear target antecedents and give performance feedback. Allocate rewards contingently and immediately upon the appearance of the desired behaviors. Allocate rewards wisely in terms of scheduling the delivery of positive reinforcement.
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Study Question 4: What are reinforcement theories and how are they linked to motivation?
Reinforcement.
The administration of a consequence as a
result of a behavior.
Proper management of reinforcement can
change the direction, level, and persistence of an individuals behavior.

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Law of effect.
Theoretical basis for manipulating
consequences of behavior.
Behavior that results in a pleasant outcome is
likely to be repeated while behavior that results in an unpleasant outcome is not likely to be repeated.
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Organizational behavior modification (OB Mod).

The systematic reinforcement of desirable
work behavior and the nonreinforcement or punishment of unwanted work behavior. Uses four basic strategies:
Positive reinforcement. Negative reinforcement. Punishment. Extinction.
Positive reinforcement.
The administration of positive consequences
to increase the likelihood of repeating the desired behavior in similar settings. Rewards are not necessarily positive reinforcers. A reward is a positive reinforcer only if the behavior improves.
Principles governing reinforcement.

Law of contingent reinforcement.
The reward must be delivered only if the desired
behavior is exhibited.
Law of immediate reinforcement.

The reward must be given as soon as possible after
the desired behavior is exhibited.

Scheduling reinforcement. Continuous reinforcement.

Administers a reward each time the desired
behavior occurs.
Intermittent reinforcement. Rewards behavior periodically either on the basis of time elapsed or the number of desired behaviors exhibited.
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Negative reinforcement.
Also known as avoidance. The withdrawal of negative consequences to
increase the likelihood of repeating the desired behavior in a similar setting.
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Punishment.
The administration of negative consequences
or the withdrawal of positive consequences to reduce the likelihood of repeating the behavior in similar settings.
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Implications of using punishment.

Punishing poor performance enhances
performance without affecting satisfaction.

Arbitrary and capricious punishment leads to
poor performance and low satisfaction.

Punishment may be offset by positive reinforcement from another source.
Extinction.
The withdrawal of the reinforcing
consequences for a given behavior. The behavior is not unlearned; it simply is not exhibited. The behavior will reappear if it is reinforced again.
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Study Question 4: What are reinforcement theories and how are they linked to motivation? Ethical issues with reinforcement usage.
Is improved performance really due to reinforcement? Is the use of reinforcement demeaning and
dehumanizing? Will managers abuse their power by exerting external control over behavior? How can we ensure that the manipulation of consequences is done in a positive and constructive fashion?

How are motivation, job satisfaction, and performance related? What are job-design approaches? How are technology and job design related? What alternative work arrangements are used today?
Study Question 1: How are motivation, job satisfaction, and performance related? Job satisfaction.
The degree to which individuals feel positively
or negatively about their jobs.

Job satisfaction can be assessed:
By managerial observation and interpretation. Through use of job satisfaction questionnaires.
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Study Question 1: How are motivation, job satisfaction, and performance related?
Implications of key work decisions for job satisfaction.
Joining and remaining a member of an organization.
Satisfied workers have better attendance and less turnover.
Working hard in pursuit of high levels of task
performance.
Three alternative relationships between performance and
satisfaction.
Study Question 1: How are motivation, job satisfaction, and performance related? Argument: satisfaction causes performance.
Managerial implication to increase
employees work performance, make them happy. Job satisfaction alone is not a consistent predictor of work performance.
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Study Question 1: How are motivation, job satisfaction, and performance related? Argument: performance causes satisfaction.
Managerial implication help people achieve
high performance, then satisfaction will follow. Performance in a given time period is related to satisfaction in a later time period. Rewards link performance with later satisfaction.
Study Question 1: How are motivation, job satisfaction, and performance related? Argument: rewards cause both satisfaction and performance.
Managerial implications. Proper allocation of rewards can positively influence both satisfaction and performance. High job satisfaction and performance-contingent rewards influence a persons work performance. Size and value of the reward should vary in proportion to the level of ones performance.
Study Question 1: How are motivation, job satisfaction, and performance related?
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Study question 2: What are jobdesign approaches?
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Scientific management.
Sought to improve work efficiency by creating
small, repetitive tasks and training workers to do these tasks well. Job simplification.
Standardizes work procedures and employs people
in clearly defined and highly specialized tasks. Intent is to increase efficiency, but it may be decreased due to the motivational impact of unappealing jobs.

Job enlargement and job rotation.
Job enlargement. Increases task variety by combining into one job two or more tasks that were previously assigned to separate workers. Job rotation. Increases task variety by periodically shifting workers among jobs involving different tasks. Enlargement and rotation use horizontal
loading to increase job breadth.


Job enrichment.
The practice of enhancing job content by
building motivating factors such as responsibility, achievement, recognition, and personal growth into the job. Adds planning and evaluating duties to the job content. Uses vertical loading to increase job depth.

Ways to increase job depth.

Allow workers to plan. Allow workers to control. Maximize job freedom. Increase task difficulty. Help workers become task experts. Provide performance feedback. Increase performance accountability. Provide complete units of work.

Concerns about job enrichment.
Job enrichment can be very costly. Controversy concerning whether pay
must be increased when jobs are enriched.

Herzbergs argument regarding the impact
of competitive pay and enriched jobs.

Study question 3: What are the keys to designing motivating jobs?
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Core job characteristics.
Skill variety.
Degree to which a job requires a variety of different activities
and involves the use of a number of different skills and talents of the individual.
Task identity.
Degree to which the job requires the completion of a whole
and identifiable piece of work; one that involves doing a job from beginning to end with a visible outcome.
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Core job characteristics (cont.).
Task significance.
Degree to which the job is important and involves a
meaningful contribution to the organization or society in general.
Autonomy.
Degree to which the job gives the employee substantial
freedom, independence, and discretion in scheduling the work and in determining the procedures used in carrying it out.

Core job characteristics (cont.).
Job feedback.
Degree to which carrying out the work activities provides
direct and clear information to the employee regarding how well the job has been done. .
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Motivating potential score.
Combined together, the core job
characteristics create a motivating potential score (MPS). MPS indicates the degree to which the job is capable of motivating people. A jobs MPS can be raised by enriching the core characteristics.

Critical psychological states.
When the core characteristics are highly
enriched, three critical psychological states are positively influenced.

Experienced meaningfulness of work. Experienced responsibility for work outcomes. Knowledge of actual results of work activities.
Positive psychological states create positive
work outcomes.

Enriched core job characteristics will create positive psychological states, which in turn will create positive work outcomes only when:
Employee growth-need strength is high. The employee has the requisite knowledge and
skill. Employee context satisfaction exists.


Social information processing theory.
Social information in organizations influences
the way people perceive their jobs and respond to them. Research evidence shows that both social information and the core characteristics are important determinants of how people perceive their jobs.

Managerial and global implications of enriching jobs.
Not everyones job should be enriched. Job enrichment can apply to groups. Culture has a substantial impact on job
enrichment.
Study Question 4: How are technology and job design related? Sociotechnical systems.
Reflects the importance of integrating people
and technology to create high-performance work systems.

Essential for new developments in job design,
given the impact of computers and information technology in the modern workplace.
Study Question 4: How are technology and job design related? Flexible manufacturing systems.
Adaptive computer-based technologies and
integrated job designs that are used to shift work easily and quickly among alternative products. Workers develop expertise across a wide range of functions. Jobs offer a wealth of potential for enriched core job characteristics.
Study Question 4: How are technology and job design related? Workflow and process reengineering.
Process reengineering is the analysis,
streamlining, and reconfiguration of actions and tasks required to reach a work goal.
This approach for improving workflows and
job designs is driven by one question:

What is necessary and what else can be eliminated?
Study Question 5: What alternative work arrangements are used today?

Compressed work weeks.
Any scheduling of work that allows a full-time
job to be completed in fewer than the standard five days.

4/40 is most common form.
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Compressed work weeks (cont.).
Advantages. For workers: added time off. For organizations: lower absenteeism and
improved recruiting of new employees. Disadvantages. For workers: increased fatigue and family adjustment problems. For organizations: work scheduling problems, customer complaints, and possible union opposition.

Flexible working hours.
Gives individuals a daily choice in the timing of
their work commitments.

Advantages:
For workers: shorter commuting time, more leisure time, more job satisfaction, and greater sense of responsibility.
For organizations: less absenteeism, tardiness, and
turnover; more commitment; and higher performance.


Job sharing.
One full-time job is assigned to two or more
persons who divide the work according to agreed-upon hours.

Advantages.
For workers: less burnout and higher energy level. For organizations; attracting talented people who
who would otherwise be unable to work.


Work at home and the virtual office.
Telecommuting. Work done at home or in a remote location via use of computers and advanced communication linkages with a central office or other employment locations. Variants of telecommuting. Flexiplace. Hoteling. Virtual office.

Advantages of telecommuting.
For workers: flexibility, comforts of home, and choice
of work locations consistent with ones lifestyle.

For organizations: costs savings, efficiency, and
improved employee satisfaction.
Disadvantages of telecommuting.
For workers: isolation from co-workers, decreased
identification with work team, and technical difficulties with computer linkages.

Part-time work.
Temporary part-time work.
An employee is classified as temporary and works less than the standard 40-hour work week.
Permanent part-time work.

An employee is classified as a permanent member of the workforce and works less than the standard 40-hour work week.

Advantages of part-time work.
For workers: appeals to people who want to
supplement other jobs or do not want full-time work. For organizations: lower labor costs, ability to better accommodate peaks and valleys of business cycle, and better management of retention quality.
Disadvantages of part-time work.

For workers: added stress and potentially diminished
performance if holding two jobs, failure to qualify for benefits, and lower pay rates than full-time counterparts.
Chapter 8 Study Questions What is goal setting? What is performance appraisal? What are compensation and rewards? What are human resource development and person-job fit?
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Study Question 1: What is goal setting?
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Study Question 1: What is goal setting? Goal setting guidelines.

Difficult goals are more likely to lead to
higher performance than are less difficult ones. Specific goals are more likely to lead to higher performance than are no goals or vague or general ones. Task feedback, or knowledge of results, is likely to motivate people toward higher performance by encouraging the setting of higher performance goals.
Study Question 1: What is goal setting? Goal setting guidelines (cont.).

Goals are most likely to lead to higher
performance when the people have the abilities and the feeling of self-efficacy required to accomplish them. Goals are most likely to motivate people toward higher performance when they are accepted and there is commitment to them.
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Study Question 1: What is goal setting? Goal setting and MBO.

Management by objectives (MBO) is a process
of joint goal setting between a supervisor and a subordinate. MBO is consistent with the goal setting guidelines derived from the Locke and Latham model. MBO establishes performance goals consistent with higher level work unit and organizational objectives.
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Potential problems with MBO.
Too much paperwork. in documenting goals and
accomplishments.
Too much emphasis on:
Goal-oriented rewards and punishments. Top-down goals. Goals that are easily stated in objective terms. Individual goals instead of group goals.
MBO may need to be implemented organization-wide.

Study Question 2: What is performance appraisal? Performance appraisal.

Helps both the manager and subordinate
maintain the organization-job-employee characteristics match

The process of systematically evaluating
performance and providing feedback upon which performance adjustments can be made.
Study Question 2: What is performance appraisal? Functions of performance appraisal.

Define the specific job criteria against which
performance will be measured. Measure past job performance accurately. Justify rewards, thereby differentiating between high and low performance. Define ratees needed development experiences.
Study Question 2: What is performance appraisal? Two general purposes of good performance appraisal.
Evaluation.
Concerned with such issues as promotions,
transfers, terminations, and salary increases.
Feedback and development.

Let workers know their status relative to firms
expectations and performance objectives.

Study Question 2: What is performance appraisal? Who does the performance appraisal?
Traditionally done by ratees immediate
superior.
People other than immediate superior may
have better information on certain aspects of ratees performance.

360-degree evaluation provides appraisal
information from multiple perspectives.

Study Question 2: What is performance appraisal? Performance appraisal dimensions and standards.
Output measures.
Quantity of work output. Quality of work output.
Activity measures.
Behavioral measures that are typically obtained
from the evaluators observation and rating.

Study Question 2: What is performance appraisal? Comparative methods of performance appraisal.

Ranking. Raters rank order people from best to worst. Paired comparisons. Raters compare each person with every other person. Forced distribution. Raters place a specific proportion of employees into each performance category.
Study Question 2: What is performance appraisal?

Absolute methods of performance appraisal.
Graphic rating scales. Raters assign scores on a list of dimensions related
to high performance outcomes in a given job.

Critical incident diary records. Rater records incidents of unusual success or
failure in a given performance aspect.

Behaviorally anchored rating scales (BARS). Rater identifies observable job behaviors.

Absolute methods of performance appraisal (cont.).
Behavioral observation scale (BOS). Rater rates each observable job behavior on a five-
point frequency scale.

Management by objectives. Jointly established goals used as standards against
which the subordinates performance is evaluated.


To be meaningful, an appraisal system must be:
Reliable provide consistent results across time. Valid actually measure people on relevant job
content.
Measurement errors can threaten the reliability or validity of performance appraisals.


Measurement errors in performance appraisal.
Halo errors. Raters evaluate on several different dimensions and
give a similar rating for each dimension. Leniency errors. Raters tend to give everyone relatively high ratings. Strictness errors.
Raters tend to give everyone relatively low ratings.
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Measurement errors in performance appraisal (cont.).
Central tendency errors. Raters lump everyone together around the average
or middle. Low differentiation errors. Raters restrict themselves to a small part of the rating scale. Examples include leniency, strictness, and central tendency errors.

Measurement errors in performance appraisal (cont.).
Recency errors. Raters allow recent events to exercise undue
influence on ratings. Personal bias errors. Raters let personal biases, such as stereotypes, unduly influence the ratings. Cultural bias errors. Raters allow cultural differences of employees to influence the performance appraisal.

Ways to reduce rating errors in performance appraisals.
Training raters to understand the evaluation process
and recognize errors. Ensuring that raters observe ratees on an ongoing basis. Not having the rater evaluate too many ratees. Ensuring the clarity and adequacy of performance dimensions and standards. Avoiding terms that have different meanings for different raters.
Study Question 2: What is performance appraisal? Guidelines for ensuring the legality of performance appraisal systems.
Base appraisal on job requirements as
reflected in performance standards. Ensure that employees clearly understand the performance standards. Use clearly defined dimensions. Use behaviorally-based dimensions supported by observable evidence.
Study Question 2: What is performance appraisal? Guidelines for ensuring the legality of performance appraisal systems (cont.).
Avoid abstract trait names. Ensure that scale anchors are brief and logically consistent. Ensure that the system is valid and psychometrically sound. Provide an appeal mechanism to handle appraisal disagreements.
Study Question 3: What are compensation and rewards?

Pay as an extrinsic reward.
Pay can help organizations attract and retain
highly capable workers, and help satisfy and motivate these workers. High levels of job performance must be viewed as the path through which high pay can be achieved. Merit pay bases an individuals salary or wage increase on the persons performance.

Pay as an extrinsic reward (cont.).
Merit pay should be based on realistic and
accurate measures of individual work performance. Some people argue that merit pay plans ignore the high degree of task interdependence among employees.
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Creative pay practices.
Skill-based pay. Rewards people for acquiring and developing job-
relevant skills. Gain-sharing plans. Give workers an opportunity to share in productivity gains through increased earnings. Profit-sharing plans. Reward employees based on the entire organizations performance

Creative pay practices (cont.).
Employee stock ownership plans (ESOPs). Give company stock to employees or allow them to
purchase it at a price below market value Lump-sum pay increases. Provide wage or salary increase in one or more lump-sum payments. Flexible benefit plans. Allow workers to select benefits according to their individual needs.
Study Question 4: What are human resource development and person-job fit? Human resource development (HRD) and the person-job fit.
HRD and the person-job fit are key
contributing activities in performance management and rewards. Human resource strategic planning provides the foundation for HRD and the person-job fit. Staffing, training, and career planning and development are important functions in HRD and achieving a person-job fit.
Study Question 4: What are human resource development and person-job fit? Job analysis.
The process and procedures used to collect and classify information about tasks the organization needs to complete. Identifies the worker characteristics needed to perform the job. Forms the basis for a job description and job specifications.
Study Question 4: What are human resource development and person-job fit?
Recruitment.
The process of attracting the best qualified individuals
to apply for a given job.

Typical recruitment steps.
Advertisement of a position vacancy. Preliminary contact with potential job candidates. Preliminary screening to obtain a pool of candidates.
Recruitment approaches are external or internal. Realistic job previews.

Study Question 4: What are human resource development and person-job fit? Selection.
A series of steps from initial applicant
screening to final hiring of the new employee. Selection process.

Completing application materials. Conducting an interview. Completing any necessary tests. Doing a background investigation. Deciding to hire or not to hire.
Study Question 4: What are human resource development and person-job fit? Socialization.
Process that adapts employees to the
organizations culture. Occurs during and after completion of the staffing process. Phases of socialization.
Anticipatory socialization. Encounter. Change and acquisition.
Study Question 4: What are human resource development and person-job fit? Training.
A set of activities that provides the
opportunity to acquire and improve job-related skills. Types of training.

On-the-job training involves job instruction while
performing the job in the actual workplace. Off-the-job training commonly involves lectures, videos, and simulations, and increasingly is done through e-training.
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Adult life cycle and career stages.
The different problems and prospects of the adult life
cycle affect peoples work and careers. Career stages reflect the different responsibilities and achievements associated with peoples working lives. Life cycle and career stages. Entry and establishment or the provisional adulthood stage. Advancement or the first adulthood stage. Maintenance, withdrawal, and retirement or the second adulthood stage. .

What is the nature of groups in organizations? What are the stages of group development? What are the foundations of group performance? How do groups make decisions?
Study Question 1: What is the nature of groups in organizations?

A group is a collection of two or more people who work with one another regularly to achieve common goals. In a true group, members are mutually dependent on one another and interact with one another. Hot groups thrive in conditions of crisis and competition.

Effective groups achieve high levels of:
Task performance.
Members attain performance goals regarding quantity,
quality, and timeliness of work results.
Members satisfaction.
Members believe that their participation and experiences are
positive and meet important personal needs.
Team viability.
Members are sufficiently satisfied to continue working
together on an ongoing basis.


How groups help organizations
Groups are good for people. Groups can improve creativity. Groups can make better decisions. Groups can increase commitments to action. Groups help control their members. Groups help offset large organization size.

Situations in which groups are superior to individuals.
When there is no clear expert in a particular
problem or task. When problem solving can be handled by a division of labor and the sharing of information. When creativity and innovation are needed.

Potential benefits for group members.
People learn from each other and share job skills and
knowledge. Groups are important sources of need satisfaction for their members. Members can provide emotional support for each other in times of crisis or pressure. Members contributions can help them experience self-esteem and personal involvement.

Social loafing.
The tendency of people to work less hard in a
group than they would individually. Reasons for social loafing.

Individual contributions are less noticeable in the group context. Some individuals prefer to see others carry the workload.
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Ways of preventing social loafing.
Define member roles and tasks to maximize
individual interests.
Raise accountability by identifying
individuals performance contributions to the group.

Link individual rewards to performance
contributions to the group.


Social facilitation.
The tendency for a persons behavior to be
influenced by the presence of others.

Positively affects performance when a person
is proficient on the task.

Negatively affects task performance when the
task is not well-learned.


Formal groups.
Officially designated to serve a specific
organizational purpose. The head of a formal group is responsible for the groups performance and serves a linkingpin role. May be permanent or temporary. Permanent work groups are command groups. Temporary work groups are task groups.

Types of formal groups.
Cross-functional teams or task forces. Engage in special problem-solving efforts
drawing on input of the functional areas. Project teams. Formed to complete a specific task with a well-defined end point. Virtual group. Members work together via computers.

Informal groups.
Emerge without being officially designated by
the organization.
Types of informal groups.
Friendship groups. Interest groups.
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Effects of informal groups.
Can help people get their jobs done. Can speed up workflow by supplementing
formal lines of authority.

Can satisfy needs that are thwarted or unmet
by the formal group.

Can provide members with social satisfaction,
security, and a sense of belonging.

Study Question 2: What are the stages of group development?
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Forming stage.
Initial entry of members to a group. Member challenges.
Getting to know each other. Discovering what is considered acceptable
behavior.
Determining the groups real task. Defining group rules.

Storming stage.
A period of high emotionality and tension
among group members. Member challenges.

Hostility and infighting. Formation of coalitions and cliques. Clarification of members expectations. Giving attention to obstacles to group goals. Understanding one anothers interpersonal styles. Finding ways to accomplish group goals while satisfying individual needs.

Norming stage.
The point at which the group really begins to
come together as a coordinated unit. Member challenges.

Holding group together by maintaining a positive balance. Letting the desire for group harmony obscure group problems. Being mistaken about reaching ultimate maturity .

Performing stage.
Marks the emergence of a mature, organized,
and well-functioning group. Member challenges.

Meeting complex tasks and conflicts in creative
ways. Being motivated by group goals and achieving satisfaction. Continuing to improve relationships and performance. Adapting to changing opportunities and demands.
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Adjourning stage.
A well-integrated group is:
Able to disband when its work is finished. Willing to work together in the future.
Particularly important for temporary groups.
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Study Question 3: What are the foundations of group performance?
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Tasks.
Technical demands of a task.
Routineness, difficulty, and information requirements.
Tasks that are complex in technical demands
require unique solutions and more information processing.


Tasks (cont.).
Social demands of a task.
Relations, ego involvement, and controversies over ends and means.
Tasks that are complex in social demands
involve difficulties in reaching agreement on goals or methods for accomplishing them.


Goals, rewards, and resources.
Long-term performance relies on:
Appropriate goals. Well-designed reward systems. Adequate resources.
A groups performance can suffer when:

Goals are unclear, unchallenging, or arbitrarily imposed. Goals are focused too much on individuals. Adequate budgets, facilities, good work methods and
procedures, and the best technologies are not available.


Technology.
Provides the means to get work accomplished. The right technology must be available for the
task at hand.
Workflow technology can affect the way
group members interact.


Membership characteristics.
A group must have the right skills and
competencies available for task performance and problem solving.

Homogeneous groups may not perform well if they
lack the requisite experiences, skills, and competencies. Heterogeneous groups may perform well if they effectively utilize a variety of experiences, skills, and competencies.

Membership characteristics (cont.).
Diversity-consensus dilemma.
Increasing diversity among group members makes
it harder for group members to work together, even though the diversity itself expands the skills and perspectives available for problem solving.
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FIRO-B theory. Identifies individual differences in how people relate to one another in groups. Based on needs to express and receive feelings of inclusion, control, and affection. Groups whose members have compatible characteristics are likely to be more effective. Groups whose members have incompatible characteristics are likely to be less effective.

Status. A persons relative rank, prestige, or standing in a group. Status congruence. Occurs when a persons position within the group is equivalent in status to positions held outside the group. When status incongruence is present, problems will likely occur.

Group size.
Can make a difference in a groups
effectiveness. As group size increases, performance and member satisfaction increase up to a point. As a group size continues to grow, communication and coordination problems often set in, and performance and satisfaction may decline. Problem-solving groups should have 5 to 7 members.

Group dynamics concern the forces operating within groups that affect the way members relate to and work with one another. From a systems perspective, the throughputs for a group or team are group dynamics.

What goes on within groups.
Work group behaviors.
Required behaviors those that are formally
defined and expected by the organization.

Emergent behaviors those that group members
display in addition to what the organization asks of them.


What goes on within groups.
Member relationships.
Activities the things people do or the actions
they take.
Interactions interpersonal communications and
contacts.
Sentiments the feelings, attitudes, beliefs, or
values held by group members.


What goes on between groups.
Intergroup dynamics. The dynamics that take place between two or more groups. Ways to achieve positive intergroup dynamics. Refocusing members on a common enemy or goal. Negotiating directly. Training members to work more cooperatively. Refocusing rewards on contributions to the total organization and how much groups help each other.
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Study Question 4: How do groups make decisions?

How groups make decisions.
Decision by lack of response.
One idea after another is suggested without any discussion-
taking place; when the group finally accepts the idea, all others have been bypassed and discarded by simple lack of response rather than by critical evaluation.
Decision by authority rule.

The chairperson, manager, or leader makes a decision for the
group.
Decision by minority rule.

Two or three people are able to dominate or railroad the
group into making a decision to which they agree.


How groups make decisions (cont.).
Decision by majority rule.
Formal voting may take place, or members may be polled to
find the majority viewpoint.
Decision by consensus.
Discussion leads to one alternative being favored by most
members and the other members agree to support it.
Decision by unanimity.
All group members agree totally on the course of action to be
taken.

Potential advantages of group decision making.
More knowledge and expertise is applied to
solve the problem. A greater number of alternatives are examined. The final decision is better understood and accepted by all group members. More commitment among all group members to make the final decision work.

Potential disadvantages of group decision making.
Individuals may feel compelled to conform to
the apparent wishes of the group.

The groups decision may be dominated by
one individual or a small coalition.

Group decisions usually take longer to make.

Ways to avoid groupthink.
Assign the role of critical evaluator to each
group member. Have the leader avoid seeming partial to one course of action. Create subgroups that each work on the same problem. Have group members discuss issues with outsiders and report back.

Ways to avoid groupthink (cont.).
Invite outside experts to observe and react to
group processes. Assign someone to be a devils advocate at each meeting. Write alternative scenarios for the intentions of competing groups. Hold second-chance meetings after consensus is apparently achieved.

How to improve group decisions.
Brainstorming. Group members actively generate as many ideas and alternatives as possible, and they do so relatively quickly and without inhibitions.
Nominal group technique.

Puts people in small groups of six to seven members and asks everyone to respond individually and in writing to a nominal question.

How to improve group decisions (cont.).
Delphi technique.
Involves generating decision-making alternatives
through a series of survey questionnaires.
Computer-mediated decision making.

Group decision making takes place across great distances with the aid of group decision support systems.

What is a the nature of teams and
teamwork? What is team building? How does team building improve performance? How do teams contribute to the highperformance workplace?
Study Question 1: What is the nature of team and teamwork?

A team is a small group of people with complementary skills, who work actively together to achieve a common purpose for which they hold themselves collectively accountable. Teams are one of the major forces behind revolutionary changes in contemporary organizations.

Types of teams.
Teams that recommend things. Established to study specific problems and recommend solutions to them. Teams that run things. Have formal responsibility for leading other groups. Teams that make or do things. Functional groups that perform ongoing tasks.

Teamwork occurs when group members actively work together in such a way that all their respective skills are well utilized to achieve a common purpose.
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Characteristics of high performance teams.
They have strong core values. They turn a general sense of purpose into
specific performance objectives.

They have the right mix of skills. They possess creativity.
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Characteristics of teams with homogeneous membership.
Members are similar with respect to such variables as
age, gender, race, experience, ethnicity, and culture.

Members can quickly build social relations and
engage in the interactions needed for teamwork.

Homogeneity may limit the team in terms of ideas,
viewpoints, and creativity.


Characteristics of teams with heterogeneous membership.
Members are diverse in demography, experiences, life
styles, and cultures, among other variables.

Diversity can help improve team problem solving and
increase creativity.
Diversity among team members may create
performance difficulties early in the teams life or stage of development.


Characteristics of teams with heterogeneous membership (cont.).
Enhanced performance potential is possible once
short-run struggles are resolved.

Diversity can provide great advantages for high-
performance organizations.
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Study Question 2: What is team building?

Work groups and teams must master challenges as they pass through the various stages of group development. Team building is a sequence of planned activities designed to gather and analyze data on the functioning of a group and to initiate changes designed to improve teamwork and increase group effectiveness.
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Approaches to team building.
Formal retreat approach. Team building occurs during an offsite retreat. Continuous improvement approach. The manager, team leader, or members take responsibility for ongoing team building. Outdoor experience approach. Members engage in physically challenging situations that require teamwork.
Study Question 3: How does team building improve performance? New members are concerned about issues of:
Participation. Goals. Control. Relationships.
Study Question 3: How does team building improve performance? Behavior profiles of coping with individual entry problems.
Tough battler. Friendly helper.
Objective thinker.
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Study Question 3: How does team building improve performance?

Task and maintenance leadership.
Sustained high performance requires meeting both
task needs and maintenance needs.

High-performance teams require distributed
leadership.
Distributive leadership is the sharing among team
members of the responsibilities for task and maintenance contributions.

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Groups members should avoid the following disruptive behaviors:
Being overly aggressive toward other members. Withdrawing and refusing to cooperate with others. Horsing around when there is work to be done. Using the group as a forum for self-confession. Talking too much about irrelevant matters. Trying to compete for attention and recognition.

Roles and role dynamics.
A role is a set of expectations associated with
a job or position on a team. Role ambiguity occurs when a person is uncertain about his/her role. Role overload occurs when too much is expected and the person feels overwhelmed with work. Role underload occurs when too little is expected and the person feels underutilized.

Roles and role dynamics (cont.).
Role conflict occurs when a person is
unable to meet conflicting expectations. Forms of role conflict.

Intrasender role conflict. Intersender role conflict. Person-role conflict. Interrole conflict.
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Norms represent beliefs about how group or team members are expected to behave. Norms are rules or standards of conduct. Managers and leaders should help their groups adopt positive norms that support organizational goals.

Key norms that can have positive or negative implications.

Performance norms. Ethics norms. Organizational and personal pride norms. High-achievement norms. Support and helpfulness norms. Improvement and change norms.

Cohesiveness is the degree to which members are attached to and motivated to remain a part of the team High team cohesiveness occurs when:

Members are similar in age, attitudes, needs, and backgrounds. Group size is small. Members respect each others competencies. Members agree on common goals. Members work on interdependent tasks. Groups are physically isolated from others. Groups experience performance success or crisis.
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Study Question 4: How do teams contribute to the high-performance workplace?
Problem-solving teams.
Employee involvements teams include a wide
variety of teams whose members meet regularly to collectively examine important workplace issues. Quality circle.
A special type of employee involvement team. Team meets periodically to address problems
relating to quality, productivity, or cost.

Cross-functional teams.
Consist of members representing different
functional departments or work units.

Used to overcome functional silos problem. Used to solve problems with a positive
combination of functional expertise and integrative systems thinking.

Advantages of virtual teams.

Cost-effectiveness and speed where members
are unable to meet easily face-to-face. Computer power fulfills typical team needs for information processing and decision making. Communication is possible among people separated by great distances. Interaction and decision making are focused on facts and objective information rather than emotional considerations.
.
Disadvantages of virtual teams.

The lack of personal contact between team
members.
Group decisions are made in a limited social
context.
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Advantages of self-managing teams.

Productivity and quality improvements. Production flexibility and faster response to
technological change. Reduced absenteeism and turnover. Improved work attitudes and quality of work life.
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Study Question 4: How do teams contribute to the high-performance workplace? Disadvantages of self-managing teams.
Structural changes in job classifications and
management levels eliminate the need for first-line supervisors.

Managers must learn to deal with teams rather than
individuals.
Supervisors who are displaced by self-managing
teams may feel threatened.


What is leadership and how does it differ from management? What are situational contingency approaches to leadership ? What are attributional approaches to leadership? What are some emerging leadership perspectives and why are they especially important in todays organizations?
Study Question 1: What is leadership and how does it differ from management?
Management promotes stability or enables the organization to run smoothly. Leadership promotes adaptive or useful changes. Persons in managerial positions may be involved with both management and leadership. Both management and leadership are needed for organizational success.
Study Question 1: What is leadership and how does it differ from management? Leadership is a special case of interpersonal influence that gets an individual or group to do what the leader or manager wants done. Forms of leadership.
Formal leadership. Informal leadership.
Study Question 1: What is leadership and how does it differ from management? Approaches to leadership.
Trait and behavioral perspectives. Situational contingency perspectives. Attributional perspectives. New leadership perspectives.
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Study Question 1: What is leadership and how does it differ from management? Trait theories.
Assume that traits play a key role in: Differentiating between leaders and nonleaders. Predicting leader or organizational outcomes. Great person-trait approach. Earliest approach in studying leadership. Tried to determine the traits that characterized great leaders.
Study Question 1: What is leadership and how does it differ from management?
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Study Question 1: What is leadership and how does it differ from management? Behavioral theories.
Assume that leader behaviors are crucial for
explaining performance and other organizational outcomes. Focus on leader behaviors rather than traits. Major behavioral theories.

Michigan leadership studies. Ohio State leadership studies. Leadership Grid. Leader-Member Exchange (LMX) theory.
Study Question 1: What is leadership and how does it differ from management? Michigan leadership studies.
Employee-centered supervisors. Place strong emphasis on subordinates welfare. Production-centered supervisors. Place strong emphasis on getting the work done. Employee-centered supervisors have more
productive work groups than productioncentered supervisors.

Study Question 1: What is leadership and how does it differ from management? Ohio State leadership studies.
Consideration. Concerned with peoples feelings and making things pleasant for the followers. Initiating structure. Concerned with defining task requirements and other aspects of the work agenda. Effective leaders should be high on both
consideration and initiating structure.

Study Question 1: What is leadership and how does it differ from management? Leadership Grid.
Developed by Robert Blake and Jane Mouton. Built on dual emphasis of consideration and
initiating structure. A 9 x 9 Grid (matrix) reflecting levels of concern for people and concern for task.
1 reflects minimum concern. 9 reflects maximum concern.
Study Question 1: What is leadership and how does it differ from management? Leadership Grid (cont.).
Five key Grid combinations. 1/1 low concern for production, low concern for people. 1/9 low concern for production, high concern for people. 9/1 high concern for production, low concern for people. 5/5 moderate concern for production, moderate concern for people. 9/9 high concern for production, high concern for people.
Study Question 1: What is leadership and how does it differ from management? Leader-Member Exchange (LMX) theory.
Focuses on the quality of the working
relationship between leaders and followers. LMX dimensions determine followers membership in leaders in group or out group. Different relationships with in group and out group.
Study Question 2: What are situational contingency approaches to leadership? Leader traits and behaviors can act in conjunction with situational contingencies. The effects of leader traits are enhanced by their relevance to situational contingencies. Major situational contingency theories.

Fiedlers leadership contingency theory. Fiedlers cognitive resource theory. Houses path-goal theory of leadership. Hersey and Blanchards situational leadership model.
Study Question 2: What are the situational contingency approaches to leadership?
Key variables in Fiedlers contingency model.

Situational control. The extent to which a leader can determine what his or her group is going to do as well as the outcomes of the groups actions and decisions. Is a function of:
Leader-member relations. Task structure. Position power.
Study Question 2: What are situational contingency approaches to leadership?
Key variables in Fiedlers contingency model (cont.).

Least preferred co-worker (LPC) score reflects
a persons leadership style.

High-LPC leaders have a relationship-motivated
style.
Low-LPC leaders have a task-motivated style.
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Fiedlers cognitive resource theory.

A leaders use of directive or nondirective
behavior depends on:

The leaders or subordinate group members ability
or competency. Stress. Experience. Group support of the leader.
Leader directiveness is most helpful for
performance when the leader is competent, relaxed, and supported.

Houses path-goal theory of leadership.

Rooted in the expectancy model of motivation. Emphasizes how a leader influences
subordinates perceptions of both work goals and personal goals and the links, or paths, found between these two sets of goals.
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Path-goal theory predictions.

Directive leadership will have a positive
impact on subordinates when tasks are ambiguous and the opposite effect when tasks are clear. Supportive leadership will increase the satisfaction of subordinates who work on tasks that are highly repetitive, unpleasant, stressful, or frustrating.
Path-goal theory predictions (cont.).

Achievement-oriented leadership will
encourage subordinates to strive for higher performance standards and to have more confidence in their ability to meet challenging goals when subordinates are working at ambiguous, nonrepetitive tasks. Participative leadership will promote satisfaction on nonrepetitive tasks that allow for the ego involvement of subordinates.
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Study Question 3: What are attributional approaches to leadership?

Attribution theory provides a competing perspective to the traditional leadership theory assumption that leadership and its substantive effects can be identified and measured objectively. Attribution theory suggests that leadership is influenced by attempts to understand causes of and assess responsibilities for behavior.
Study Question 3: What are attributional approaches to leadership? Leadership prototypes.

Peoples mental image of what a model leader
should look like. Mix of specific and general characteristics. Prototypes may differ by country and national culture. The closer that a leaders behavior matches the prototype held by the followers, the more favorable the leaders relations and key outcomes.
Study Question 3: What are attributional approaches to leadership? Exaggeration of the leadership difference.
Top leaders of organizations have little impact
on profits and effectiveness compared to environmental and industry forces.

Much of the impact of top leaders is symbolic. The romance of leadership refers to people
attributing romantic, almost magical, qualities to leadership.

Study Question 4: What are some emerging leadership perspectives and why are they especially important in todays organizations?
Charismatic approaches to leadership.

Charismatic leaders, by force of their personal
abilities, can have a profound and extraordinary effect on followers. Characteristics of charismatic leaders include:
High need for power. High feelings of self-efficacy. Conviction in the moral rightness of their beliefs.
Dark side versus bright side of charismatic leadership.

Dark side. Emphasizes personalized power. Leaders focus on themselves. Bright side. Emphasizes socialized power. Leaders empower followers.
Study Question 4: What are some emerging leadership perspectives and why are they especially important in todays organizations? Conger and Kanungos three-stage charismatic leadership model.
Stage 1: the leader critically evaluates the status quo. Stage 2: the leader formulates and articulates future
goals and a idealized future vision.

Stage 3: the leader shows how the goals and vision
can be achieved.
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Transactional leadership.
Involves leader-follower exchanges necessary
for achieving routine performance that is agreed upon by leaders and followers. Leader-follower exchanges involve:

Use of contingent rewards. Active management by exception. Passive management by exception. Abdicating responsibilities and avoiding decisions.
Transformational leadership.
Leaders broaden and elevate followers
interests, generate awareness and acceptance of the groups mission, and stir followers to look beyond self-interests. Dimensions of transformational leadership.

Charisma. Inspiration. Intellectual stimulation. Individualized consideration.

Study Question 4: What are some emerging leadership perspectives and why are they especially important in todays organizations? Leadership in self-managing work teams.
Leaders provide resources or act as liaisons with other
units but without the trappings of authority associated with traditional first-line supervisors. Conditions for creating and maintaining team performance.
Efficient, goal-directed effort. Adequate resources. Competent, motivated performance. A productive, supportive climate. Commitment to continuous improvement and adaptation.
Can people be trained in the new leadership?

People can be trained to adopt new leadership
approaches.
Leaders can devise improvement programs to
address their weaknesses and work with trainers to develop their leadership skills.
Leaders can be trained in charismatic skills.
Is new leadership always good?

Not always good. Dark-side charismatics can have negative
effects on followers. Not always needed. Needs to be used in conjunction with traditional leadership. Applies at all levels of organizational leadership.

What are power and influence in an organization? How are power, obedience, and formal authority intertwined in an organization? What is empowerment? What is organizational politics?
Study Question 1: What are power and influence in an organization?

Power.
The ability to get someone to do something
you want done. The ability to make things happen in the way you want.
Influence.
Expressed by others behavioral response to
your exercise of power.


Position power derives from a persons position in the organizational hierarchy. Types of position power.
Reward power. Coercive power. Legitimate power. Process power. Information power. Representative power.

Reward power.
The extent to which a manager can use extrinsic and
intrinsic rewards to control other people.
Coercive power.
The extent to which a manager can deny desired
rewards and administer punishment to control other people.


Legitimate power.
The extent to which a manager can use subordinates
internalized values or beliefs that the boss has the right of command to control other people.
Process power.
The control over methods of production and analysis
that a manager has due to being in a position to influence how inputs are transformed into outputs.

Information power.
The access to and/or control of information. .
Representative power.
The formal right conferred by the firm to speak for a
potentially important group composed of individuals across departments or outside the firm.
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Personal power derives from individual sources. Types of personal power.
Expert power. Rational persuasion. Referent power.

Expert power.
The ability to control another persons behavior
through the possession of knowledge, experience, or judgment that the other person does not have but needs.
Rational persuasion.
The ability to control another persons behavior by
convincing the other person of the desirability of a goal and a reasonable way of achieving it.

Referent power.
The ability to control anothers behavior because the
person wants to identify with the power source.
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Ways to build position power.
Demonstrating work unit relevance to
organizational goals and needs.

Increasing task relevance of ones own
activities and work units activities.

Attempting to define tasks so they are difficult
to evaluate.

Ways to build personal power.
Building expertise. Advanced training and education, participation in professional associations, and project involvement. Learning political savvy. Learning ways to negotiate, persuade, and understand goals and means that others accept. Enhancing likeability. Pleasant personality characteristics, agreeable behavior patterns, and attractive personal appearance.

Ways that managers increase the visibility of their job performance.
Expanding contacts with senior people. Making oral presentations of written work. Participating in problem-solving task forces. Sending out notices of accomplishment. Seeking opportunities to increase name
recognition.

Controlling decision premises.
Executives attempt to control, or at least
influence, decision premises. A decision premise is a basis for defining the problem and for selecting among alternatives. Executives who want to increase their power will make their goals and needs clear and bargain effectively.

Common techniques for exercising relational influence.

Reason. Friendliness. Coalition. Bargaining. Assertiveness. Higher authority. Sanctions.

Study Question 2: How are power, obedience, and formal authority intertwined in an organization?
Important practical issues in the exercise of power and formal authority.

Why should subordinates respond to a
managers authority (or right to command)?

Given that subordinates are willing to obey,
what determines the limits of obedience?

Study Question 2: How are power, obedience, and formal authority intertwined in an organization? The Milgram experiments.
Designed to determine the extent to which people
obey the commands of an authority figure, even if they believe they are endangering the life of another person. The results indicated that the majority of the experimental subjects would obey the commands of the authority figure. Basic conclusion was that people tend to comply with and be obedient to authority.
For a directive from a superior to be accepted as authoritative, the subordinate:

Can and must understand it. Must feel mentally and physically capable of
carrying it out. Must believe that it is consistent with the organizations purpose. Must believe that it is consistent with his or her personal interests.
Zone of indifference.
In exchange for certain inducements,
subordinates recognize the authority of the organization and its managers to direct their behavior in certain ways. A zone of indifference is the range of authoritative requests to which a subordinate is willing to respond without subjecting the directives to critical evaluation or judgment.
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Study Question 3: What is empowerment? Empowerment.

The process by which managers help others to
acquire and use the power needed to make decisions affecting themselves and their work.
Provides the foundation for self-managing work teams and other employee involvement groups. Empowerment emphasizes the ability to make things happen.
Study Question 3: What is empowerment? Changing position power.

Moving power down the hierarchy alters the
existing pattern of position power.

Changing this pattern raises the following
important questions:
Can empowered individuals give rewards and
sanctions based on task accomplishment?

Has their new right to act been legitimized with
formal authority?
Study Question 3: What is empowerment? Expanding the zone of indifference.

Management needs to recognize the current
zone of indifference and systematically move to expand it.

Management should show how empowerment
will benefit people and provide the needed inducement.

.
Study Question 3: What is empowerment? Power as an expanding pie.

Employees need to be trained to expand their
power and their new influence potential.

The key is to change from a view stressing
power over others to one emphasizing the use of power to get things done.
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Study Question 3: What is empowerment? Power as an expanding pie.

Clearer definition of roles and responsibilities
helps managers empower others.

All mangers need to emphasize different ways
of exercising influence.
Special support may be needed for individuals
to become comfortable.
Study Question 4: What is organizational politics? Machiavellian tradition of organizational politics.

Emphasizes self-interest and the use of
nonsanctioned means. Organizational politics is defined as the management of influence to obtain ends not sanctioned by the organization or to obtain sanctioned ends through nonsanctioned influence means.
Study Question 4: What is organizational politics? Alternate tradition of organizational politics.

Politics is a necessary function resulting from
differences in the self-interests of individuals. Politics is the art of creative compromise among competing interests. Politics is the use of power to develop socially acceptable ends and means that balance individual and collective interests.
Study Question 4: What is organizational politics?
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Study Question 4: What is organizational politics? Subunit power.

Line units are typically more powerful than
are staff groups. Units toward the top of the organizational hierarchy are often more powerful than those toward the bottom. Power differentials are not as pronounced among units at or near the same level in an organization.
Study Question 4: What is organizational politics? Political actions for influencing lateral, intergroup relationships.
Workflow linkages. Service linkages. Advisory linkages. Auditing linkages. Approval linkages.

Important aspects of corporate political strategy.
Absence of a political strategy can be damaging. Corporate political strategy should be targeted toward
turning the government from a regulator against industry to a protector of it.

Need to make decisions about when and how to get
involved in the public policy processes.


Avoidance is quite common where the employee must risk being wrong or where actions may yield a sanction. Common techniques for avoiding action and risk taking.
Working to the rules. Playing dumb. Depersonalization. Stalling.

Common techniques for redirecting accountability and responsibility.
Passing the buck. Buffing (or rigorous documentation). Preparing a blind memo. Rewriting history. Redirecting.
Scapegoating. Blaming the problem on uncontrollable events. Escalating commitment.

Defending turf.
Defending turf is a time-honored tradition in most
large organizations.
Defending turf results when:
Managers seek to increase their power by expanding the jobs
their groups perform.

Competing interests exist among various departments and
groups.
Study Question 4: What is organizational politics? Agency theory.

An important power problem arises from the
separation of owners and managers.

Managers are agents of the owners. Public corporations can function effectively
even though its managers are self-interested.

Study Question 4: What is organizational politics? Key arguments of agency theory.

By protecting stockholder interests, all the
interests of society are served.

Stockholders have a clear interest in greater
returns.
Managers are self-interested and must be
controlled.
Study Question 4: What is organizational politics? Types of controls instituted for agents.
Pay plan incentives that align the interests of
management and stockholders.

The establishment of a strong, independent
board of directors.
Stockholders with a large stake in the firm
taking an active role on the board.


Resource dependencies.
The firms need for resources that are controlled by
others.
The resource dependence of an organization increases as:

Needed resources become more scarce. Outsiders have more control over needed resources. There are fewer substitutes for a particular type of
resource controlled by a limited number of outsiders.


Organizational governance.
The pattern of authority, influence, and acceptable
managerial behavior established at the top of the organization. Organizational governance establishes the following: What is important. How issues will be defined. Who should and should not be involved in key choices Boundaries for acceptable implementation.
Study Question 4: What is organizational politics? Negative views of organizational governance.

Unbalanced organizational governance by
some United States corporations may limit their ability to manage global operations effectively. Organizational governance is too closely tied to the short-term interests of stockholders and the pay of the CEO.

Positive views of organizational governance.
The governance of U.S. firms extends well beyond the
limited interests of the owners. Organization governance should be based on three ethical criteria. When the three ethical criteria cannot be fulfilled, the criterion of overwhelming factors should be invoked. Choosing to be ethical often involves considerable personal sacrifice.

What is the nature of communication in organizations? What are the essentials of interpersonal communication? What are the barriers to effective communication? What are current issues in organizational communication?
Study Question 1: What is the nature of communication in organizations?
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Feedback and communication.
Feedback is the process through which the
receiver communicates with the sender by returning another message. Giving feedback often is associated with one or more persons communicating an evaluation of what another person has said or done. 360-degree feedback.

Guidelines for effective constructive feedback.
Give feedback directly and in a spirit of mutual trust. Be specific, not general; use clear examples. Give feedback when the receiver is most ready to
accept it. Be accurate; check validity with others. Focus on things that the receiver can control. Limit how much feedback the receiver gets at one time.

Communication channels.
Formal channels.
Follow the chain of command established by an
organizations hierarchy of authority.
Informal channels.
Do not follow an organizations hierarchy of
authority.
The grapevine is an informal channel through
which rumors and unofficial information pass.


Channel richness.
The capacity of a communication channel to convey
information effectively.
Richest channels face-to-face communication. Moderately rich channels telephone, electronic chat
rooms, E-mail, written memos, and letters.

Leanest channels posted notices and bulletins.

Organizational communication is the specific process through which information moves and is exchanged throughout an organization. Information flows:
Through formal and informal structures. Downward, upward, and laterally.
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Study Question 2: What are the essentials of interpersonal communication? Effective and efficient communication.
Effective communication.
The accuracy of communication.
Efficient communication.
The cost of communication.
Effectiveness does not guarantee efficiency or
vice versa.
Study Question 2: What are the essentials of interpersonal communication?

Nonverbal communication. Occurs through facial expressions, body position, eye contact, and other physical gestures. Gives clues to what a person is really thinking. Two important aspects of nonverbal communication.
Kinesics the study of gestures and body
postures. Proxemics the study of how space is utilized.

Study Question 2: What are the essentials of interpersonal communication? Active listening.
Ability to listen well is a distinct asset. Everyone needs to develop good skills in
active listening.
Active listening is the ability to help the
source of a message say what he or she really means.

Study Question 2: What are the essentials of interpersonal communication? Guidelines for active listening.
Listen for content. Listen for feelings. Respond to feelings. Note all cues. Reflect back.
Study Question 2: What are the essentials of interpersonal communication? Cross-cultural communication.
Ethnocentrism. The tendency to believe that ones culture and its values are superior to those of others. Cross-cultural communication challenges. Language differences. Use of gestures. One of the best ways to understand cultural
differences is to learn some of the language.

Study Question 3: What are the barriers to effective communication?

Physical distractions.
Any aspect of the physical setting in which
communication takes place.

Can interfere with communication
effectiveness.
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Semantic problems.
Involves a poor choice or use of words. Use the KISS principle of communication.
Keep it short and simple.
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Mixed messages.
Occur when a persons words communicate
one thing while actions or body language communicates another.

Nonverbals add important insights in face-to-
face meetings.

Absence of feedback.
One-way communication flows from sender to
receiver only, with no direct and immediate feedback.

Two-way communication goes from sender to
receiver and back again.

Two-way communication is more effective
than one-way communication.


Status effects.
Status differences create potential communication
barriers between persons of higher and lower ranks .

Mum effect. Occurs when people are reluctant to transmit bad
news.
Management by wandering around (MBWA). Getting out of the office to directly communicate
with others as they do their jobs.

Study Question 4: What are current issues in organizational communication?

Advances in information technologies enable organizations to:
Distribute information much faster. Make more information available. Allow broader and more immediate access to
information. Encourage participation in the sharing and use of information. Integrate systems and functions, and use information to link with the environment.
Study Question 4: What are current issues in organizational communication? Potential disadvantages of electronic communications.
Technologies are impersonal. Nonverbal communication is removed from
situation. Can unduly influence the emotional aspects of communication. Information overload.
Study Question 4: What are current issues in organizational communication? Communication and social context.
Mean and women are socialized into different
communication styles.
Women are socialized to be more sensitive to
interpersonal relationships in communication.

Men are socialized to be competitive, aggressive,
and individualistic, which may cause communication problems.


What is the decision-making process in organizations? What are the useful decision-making models? How do intuition, judgment, and creativity affect decision making?
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Chapter 14 Study Questions (cont.)

How do you manage the decision-making process? What are some of the current issues in decision making? How do you infuse ethics into the decisionmaking process?
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Study Question 1: What is the decisionmaking process in organizations?

Decision making is the process of choosing a course of action for dealing with a problem or opportunity. Steps in systematic decision making.
Recognize and define the problem or opportunity. Identify and analyze alternative courses of action, and
estimate their effects on the problem or opportunity. Choose a preferred course of action. Implement the preferred course of action. Evaluate the results and follow up as necessary.

Certain decision environments.
Exist when information is sufficient to predict the
results of each alternative in advance of implementation.
Risk decision environments.

Exist when decision makers lack complete certainty
regarding the outcomes of various courses of action, but they are aware of the probabilities associated with their occurrence.

Uncertain decision environments.
Exist when managers have so little information on
hand that they cannot even assign probabilities to various alternatives and their possible outcomes.
Described as a rapidly changing setting in terms of:
External conditions. The information technology requirements needed for
analyzing and making decisions.

The people who influence problem and choice definitions.
Study Question 1: What is the decisionmaking process in organizations? Uncertain decision environments (cont.).
Can be described in terms of types of risks
encountered by the organization.

Strategic risks are threats to overall business
success.
Operational risks are threats inherent in the
technologies used to reach business success.

Reputation risks are threats to a brand or to the
firms reputation
Study Question 1: What is the decisionmaking process in organizations? Types of decisions.

Programmed decisions.
Involve routine problems that arise regularly and
can be addressed through standard responses.
Nonprogrammed decisions.
Involve nonroutine problems that require solutions
specifically tailored to the situation at hand.

Study Question 2:What are the useful decision-making models?
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Classical decision theory assumes the manager faces a clearly defined problem, knows all possible action alternatives and their consequences, and then chooses the optimum solution. Widespread application of classical decision theory is restricted by bounded rationality.

Classical decision theory does not appear to fit well in the modern business world, though it can be used toward the bottom of many firms. Behavioral decision theory accepts the notion of bounded rationality. It assumes the manager acts only in terms of what is perceived about a given situation, and then chooses a satisficing solution.

The garbage can model.
A model of decision making that views
problems, solutions, participants, and choice situations as mixed together in the garbage can of the organization. The garbage can model highlights two important organizational facts of life.
Different individuals may do choice making and
implementation. Many problems go unsolved.


Decision making realities.
Decision making information may not be
available.
Bounded rationality and cognitive limitations
affect the way people define problems, identify alternatives, and choose preferred solutions.

Decision making realities (cont.).
Most decision making in organizations goes
beyond step-by-step rational choice.

Decisions must be made under risk and
uncertainty.
Decisions should be ethical.
Study Question 3: How do intuition, judgment, and creativity affect decision making?
Intuition.
The ability to know or recognize quickly and
readily the possibilities of a given situation.

A key element of decision making under risk
and uncertainty.
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Judgmental heuristics.
Simplifying strategies or rules of thumb
used to make decisions.

Make it easier to to deal with uncertainty and
limited information.
437
Types of heuristics.
Availability heuristic. Bases a decision on similarity to past occurrences that are easily remembered. Representativeness heuristic. Bases a decision on similarities between an event and stereotypes of similar occurrences. Anchoring and adjustment heuristic. Bases a decision on incremental adjustments to an initial value determined by historical precedent or some reference point.
General judgmental biases in decision making.

Confirmation trap. The tendency to seek confirmation for what is already thought to be true and to not search for disconfirming information. Hindsight trap. The tendency to overestimate the degree to which an event that has already taken place could have been predicted.
Stages in the creative thinking process.

Preparation. Concentration. Incubation. Illumination Verification.
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Study Question 3: How do intuition, judgment, and creativity affect decision making? Ways of fostering creativity.
Diversifying teams to include members with different
backgrounds, training, and perspectives.

Encouraging analogical reasoning. Stressing periods of silent reflection. Recording all ideas so that the same ones are not
rediscovered.
Establishing high expectations for creativity. Developing a physical space that encourages fun,
divergent ideas.
Creativity is higher when:

Linguistic ability, willingness to engage in
divergent thinking, and intelligence are present.

Individuals are motivated by and derive
satisfaction from task accomplishment.

There are opportunities for creativity, as many
constraints as possible are eliminated, and rewards are provided for creative efforts.
Creativity is higher when (cont.):

The decision maker emphasizes engagement in
the creative process and counsels individuals to share their ideas with others.
The decision maker encourages subordinates
to recognize ambiguity, contact others with different views, and be prepared to make considerable changes.
Study Question 4: How do you manage the decision-making process?

In choosing problems to address, ask and answer the following questions:
Is the problem easy to deal with? Might the problem resolve itself? Is this my decision to make? Is this a solvable problem within the context of
the organization?

Reasons for decision making failure.
Managers too often copy others choices and try to sell
them to subordinates.
Subordinates may believe the manager is imposing his
or her will rather than working for everyones interests.

Managers may focus on the problems they see rather
than the outcomes they want.

Managers use participation too infrequently.
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Key problem attributes in the Vroom, Yetton, and Jago decision making framework.
The required quality of the decision. The commitment needed from subordinates. The amount of information the leader has. Commitment probability. Goal congruence. Subordinate conflict. Subordinate information.

Authority decisions in the Vroom, Yetton, and Jago decision making framework.
Manager or team leader uses information that he or
she possesses and decides what to do without involving others.

Variant 1 manager solves the problem or makes the
decision alone.
Variant 2 manager obtains the necessary
information from others and then decides.


Consultative decisions in the Vroom, Yetton, and Jago decision making framework.
Manager or team leader solicits input from other
people and then, based on this information and its interpretation, makes a final choice.
Variant 1 manager seeks input from others
individually and then makes a decision.

Variant 2 manager seeks input from others
collectively and then makes a decision.


Group decisions in the Vroom, Yetton, and Jago decision making framework.
Manager or team leader consults with others
and allows them to help make the final choice.
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Knowing when to quit.
The natural desire to continue on a selected course of
action reinforces escalating commitment.

Escalating commitment is the tendency to continue
and renew effort on a previously chosen course of action, even though it is not working.
Tendency to escalate commitments often outweighs
the willingness to disengage from them.

Good decision makers are willing to reverse previous
decisions.
Study Question 5: What are some of the current issues in decision making? Workplace trends affecting organizational decision makers.
Business units are becoming smaller in size. New, more flexible, and adaptable
organizational forms. Multifunctional understanding is increasingly important. Workers with both technical knowledge and team skills are increasingly desirable. The nature of work is in a state of flux.
Study Question 5: What are some of the current issues in decision making? Information technology and decision making.
Artificial intelligence is the study of how
computers can be programmed to think like human beings.

Expert systems support decision making by
following either-or rules to make deductions.

Study Question 5: What are some of the current issues in decision making? Information technology and decision making (cont.). Fuzzy logic and neural networks reason inductively.
Computer support for decision making. Information technology does not deal with
issues raised by the garbage can model.

Study Question 5: What are some of the current issues in decision making?
Cultural factors and decision making.
Culture is the way in which a group of people solves
problems. North American culture stresses decisiveness, speed, and the individual selection of alternatives. Other cultures place less emphasis on individual choice than on developing implementations that work. The most important impact of culture on decision making concerns which issues are elevated to the status of problems solvable within the firm.
Study Question 6: How do you infuse ethics into the decision-making process? Ways to infuse ethics into decision making.
Develop a code of ethics and follow it. Establish procedures for reporting violations. Involve employees in identifying ethical
issues. Monitor ethical performance. Reward ethical behavior. Publicize ethical efforts.
Study Question 6: How do you infuse ethics into the decision-making process?
Morality is involved in: Choosing problems. Deciding who should be involved in making decisions. Estimating the impacts of decision alternatives. Selecting an alternative for implementation. An effective decision needs to solve a problem as well as match moral values and help others.

What is conflict? How can conflict be managed successfully? What is negotiation? What are the different strategies involved in negotiation?
Study Question 1: What is conflict?

Conflict occurs whenever:
Disagreements exist in a social situation over
issues of substance.
Emotional antagonisms cause frictions
between individuals or groups.
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Types of conflict.
Substantive conflict.
A fundamental disagreement over ends or goals to
be pursued and the means for their accomplishment.
Emotional conflict.
Interpersonal difficulties that arise over feelings of
anger, mistrust, dislike, fear, resentment, etc.
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Levels of conflict.
Intrapersonal conflicts.
Actual or perceived pressures from incompatible
goals or expectations.
Approach-approach conflict. Avoidance-avoidance conflict. Approach-avoidance conflict.
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Levels of conflict (cont.).
Interpersonal conflict.
Occurs between two or more individuals who are
in opposition to one another.
Intergroup conflict.
Occurs among members of different teams or
groups.
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Levels of conflict (cont.).
Interorganizational conflict.
Commonly refers to the competition and rivalry
that characterize firms operating in the same markets.

Encompasses disagreements that exist between any
two or more organizations.
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Potential benefits of functional conflict.
Surfaces important problems so they can be
addressed.
Causes careful consideration of decisions. Causes reconsideration of decisions. Increases information available for decision
making.
Provides opportunities for creativity.

Potential disadvantages of dysfunctional conflict.
Diverts energies. Harms group cohesion. Promotes interpersonal hostilities. Creates overall negative environment. Can decrease work productivity and job satisfaction. Can contribute to absenteeism and job turnover.


Culture and conflict.
Culture and cultural differences must be
considered for their conflict potential.

Individuals who are not able to recognize and
respect the impact of culture may contribute to emergence of dysfunctional situations

Cross-cultural sensitivity helps defuse
dysfunctional conflict and capture advantages that constructive conflict may offer.
Study Question 2: How can conflict be managed successfully?
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Study Question 2: How can conflict be managed successfully? Causes of conflict.

Vertical conflict. Occurs between hierarchical levels. Horizontal conflict. Occurs between persons or groups at the same hierarchical level. Line-staff conflict. Involves disagreements over who has authority and control over specific matters.
Study Question 2: How can conflict be managed successfully? Causes of conflict (cont.).
Role conflicts. Occur when the communication of task expectations proves inadequate or upsetting. Workflow interdependencies. Occur when people or units are required to cooperate to meet challenging goals. Domain ambiguities. Occur as misunderstandings over such things as customer jurisdiction or scope of authority .
Study Question 2: How can conflict be managed successfully? Causes of conflict (cont.).
Resource scarcity. When resources are scarce, working relationships are likely to suffer. Power or value asymmetries. Occur when interdependent people or groups differ substantially from one another in status and influence or in values.
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Study Question 2: How can conflict be managed successfully? Indirect conflict management approaches.
Reduced interdependence.
Adjusting the level of interdependency among
units or individuals when workflow conflicts exist.

Decoupling, buffering, and linking pin roles.
Appeal to common goals.

Focusing the attention of potentially conflicting
parties on one mutually desirable conclusion.

Study Question 2: How can conflict be managed successfully? Indirect conflict management approaches (cont.).
Hierarchical referral.
Problems are referred up the hierarchy for more
senior managers to reconcile.
Altering scripts and myths.

Superficial management of conflict by using
behavioral routines that become part of the organizations culture.

Study Question 2: How can conflict be managed successfully?
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Study Question 2: How can conflict be managed successfully? Lose-lose conflict.

Avoidance. Everyone simply pretends that the conflict does not really exist and hopes that it will go away. Accommodation or smoothing. Involves playing down differences among the conflicting parties and highlighting similarities and areas of agreement. Compromise. Each party gives up something of value, but neither partys desires are fully satisfied
Study Question 2: How can conflict be managed successfully? Win-lose conflict.

Competition.
One party achieves a victory through the use of
force, superior skills, or domination.
Authoritative command.
Use of formal authority to dictate a solution and
specify who gains what and who loses what.
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Study Question 2: How can conflict be managed successfully? Win-win conflict.

Collaboration or problem solving.
Recognition by all conflicting parties that
something is wrong and needs attention, and it stresses gathering and evaluating information in solving disputes and making choices.
Collaboration and problem solving are preferred to
gain true conflict resolution when time and cost permit.

Study Question 2: How can conflict be managed successfully? Win-win solutions should:
Achieve each others goals. Be acceptable to both parties. Establish a process whereby both parties see a
responsibility to be open and honest about facts and feelings.

Study Question 2: How can conflict be managed successfully? Potential disadvantages of collaboration.
Collaboration requires time and energy. Both parties to the conflict need to be assertive
and cooperative.
Collaboration may not be feasible if the
organizations culture does not value cooperation.

Study Question 3: What is negotiation? Negotiation goals and outcomes.

Substance goals.
Outcomes that relate to content issues.
Relationship goals.
Outcomes that relate to how well people involved
in the negotiations and any constituencies they represent are able to work with one another once the process is concluded.
Study Question 3: What is negotiation? Effective negotiation.

Occurs when substance issues are resolved and
working relationships are maintained or improved.

Criteria for an effective negotiation.
Quality. Harmony. Efficiency.
Study Question 3: What is negotiation?

Ethical aspects of negotiation.
To maintain good working relationships, negotiators
should strive for high ethical standards.

Negotiators rationalizations for questionable ethical
behavior are offset by long-run negative consequences.

The unethical negotiator may be targeted for revenge. Unethical negotiating actions may become habitual.
Study Question 3: What is negotiation? Organizational settings for negotiation.

Two-party negotiation.
Manager negotiates directly with one other person.
Group negotiation.
Manager is part of a group whose members are
negotiating.
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Study Question 3: What is negotiation?

Organizational settings for negotiation (cont.).
Intergroup negotiation.
Manager is part of a group that is negotiating with
another group.
Constituency negotiation.
Manager is involved in negotiation with other
persons, with each party representing a broader constituency.

Study Question 4: What are the different strategies involved in negotiation?

Distributive negotiation.
Focuses on positions staked out or declared by the
conflicting parties.
Parties try to claim certain portions of the existing pie.
Integrative negotiation.
Sometimes called principled negotiation. Focuses on the merits of the issues. Parties try to enlarge the available pie.
Study Question 4: What are the different strategies involved in negotiation? Distributive negotiation.
The key question is: Who is going to get this
resource? Hard distributive negotiation.

Each party holds out to get its own way.
Soft distributive negotiation. One party is willing to make concessions to the other party to get things over.
Study Question 4: What are the different strategies involved in negotiation? Integrative negotiation.
The key question is: How can the resource
best be utilized?
Is less confrontational than distributive
negotiation, and permits a broader range of alternative solutions to be considered.

Opportunity for a true win-win solution.
Study Question 4: What are the different strategies involved in negotiation? Attitudinal foundations of integrative agreements.
Willingness to trust the other party. Willingness to share information with the
other party.
Willingness to ask concrete questions of the
other party.
Study Question 4: What are the different strategies involved in negotiation?

Behavioral foundations of integrative agreements.
Ability to separate the people from the problem. Ability to focus on interests rather than positions. Ability to avoid making premature judgments. Ability to keep alternative creation separate from
evaluation.
Ability to judge possible agreements on an objective
set of criteria or standards.

Study Question 4: What are the different strategies involved in negotiation? Information foundations of integrative agreements.
Each party must know what he or she will do
if an agreement cant be reached.

Each party must determine what is personally
important in the situation.

Each party must achieve an understanding of
what the other party values.

Study Question 4: What are the different strategies involved in negotiation? Common negotiation pitfalls.
Myth of the fixed pie. Possibility of escalating commitment. Negotiators often develop overconfidence in
their positions. Communication problems can cause difficulties during a negotiation.

Telling problem. Hearing problem.
Study Question 4: What are the different strategies involved in negotiation? Third-party roles in negotiation.
Alternative dispute resolution. A neutral third party works with persons
involved in a negotiation to help them resolve impasses and settle disputes. Arbitration. A third party acts as a judge and has the power to issue a decision that is binding on all disputing parties.
Study Question 4: What are the different strategies involved in negotiation? Third-party roles in negotiation (cont.).
Mediation. A neutral third party tries to engage
disputing parties in a negotiated solution through persuasion and rational argument.
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What is organizational change? What change strategies are used in organizations? How is resistance to change best managed? How do organizations innovate? How does stress affect people in change environments?
Study Question 1: What is organizational change?

Transformational change.
Results in a major overhaul of the organization
or its component systems. Described as radical change or frame-breaking change. Organizations experiencing transformational change undergo a significant shift in basic characteristic features.

Incremental change or frame-bending change.
Part of the organizations natural evolution in
building on the existing ways of operating to enhance or extend them in new directions. Introduction of new products, new technologies, and new systems and processes. Continuous improvement through incremental change is an important asset.

Change agents.
Individuals and groups who take responsibility
for changing the existing behavior patterns of another person or social system. Success of change efforts depends in part on change agents. Being an effective change agent means being a great change leader.

Unplanned change.
Occurs spontaneously and without a change
agents direction, and such change may be disruptive.

Appropriate goal is to act quickly to minimize
the negative consequences and maximize any possible benefits.


Planned change.
The result of specific efforts by a change
agent.
Direct response to someones perception of a
performance gap.
A performance gap is the discrepancy between the
desired and actual state of affairs.

Performance gaps represent problems to be
resolved or opportunities to be explored.


Organizational forces for change.
Organization-environment relationships. Organizational life cycle. Political nature of organizations.
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Reasons for failure of transformational change.
No sense of urgency. No powerful guiding coalition. No compelling vision. Failure to communicate the vision. Failure to empower others to act. Failure to celebrate short-term wins. Failure to build on accomplishments. Failure to institutionalize results.

Phases of planned change.
Unfreezing. Preparing a situation for change by disconfirming existing attitudes and behaviors. Changing. Taking action to modify a situation by altering the targets of change. Refreezing. Maintaining momentum and eventually institutionalizing the change.
Study Question 2: What change strategies are used in organizations?
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Study Question 3: How is resistance to change best managed?

Resistance to change.
Any attitude or behavior that indicates
unwillingness to make or support a desired change. Alternative views of resistance.

Something that must be overcome for change to be
successful. Feedback that can be used to facilitate achieving change objectives.


Why people resist change.
Fear of the unknown. Lack of good information. Fear for loss of security. No reasons to change. Fear for loss of power. Lack of resources. Bad timing. Habit.

Resistance to the change itself.
People may reject a change because they believe it is
not worth their time, effort, or attention.

To deal with resistance to the change itself, all those
affected should know how it satisfies the following criteria:

Benefit. Compatibility. Complexity. Triability.

Resistance to the change strategy.
Force-coercion strategy.
Likely resistance among individuals who resent management
by command or the use of threatened punishment.
Rational persuasion strategy.

Likely resistance when the data are suspect or the expertise of
advocates is unclear.
Shared-power strategy.
Likely resistance if it appears manipulative and insincere.

Resistance to the change agent.
Resistance to the change agent is directed at
the person implementing the change and often involves personality and other differences.
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How to deal with resistance.
Education and communication. Participation and support. Facilitation and support. Negotiation and agreement. Manipulation and cooptation. Explicit and implicit coercion.
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Study Question 4: How do organizations innovate?

Innovation.
The process of creating new ideas and putting them
into practice.
Product innovations.
The introduction of new or improved goods or
services to better meet customer needs.
Process innovations.
The introduction of new and better work methods and
operations.
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Features of innovative organizations.
Strategies and cultures that are built around a
commitment to innovation.
Structures that support innovation. Staffing with a clear commitment to
innovation.
Top-management support for innovation.
Study Question 5: How does stress affect people in change environments? Stress.
A state of tension experienced by individuals
facing extraordinary demands, constraints, or opportunities.
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Study Question 5: How does stress affect people in change environments? Source of stress.
Stressors.
The wide variety of things that cause stress for
individuals.
Types of stressors.
Work-related stressors. Life stressors.
Study Question 5: How does stress affect people in change environments? Work-related stressors.

Task demands. Role ambiguities. Role conflicts. Ethical dilemmas. Interpersonal problems. Career developments. Physical setting.
Study Question 5: How does stress affect people in change environments? Life stressors.
Family events. Economic difficulties. Personal affairs. Individuals needs. Individuals capabilities. Individuals personality.
Study Question 5: How does stress affect people in change environments? Stress and performance.
Constructive stress (or eustress). Moderate levels of stress act in a positive way for both individuals and organization. Destructive stress (or distress). Low and especially high levels of stress act in a negative way for both individuals and organization. Job burnout. A loss of interest in and satisfaction with a job due to stressful working conditions.
Study Question 5: How does stress affect people in change environments?

Stress and health.
Stress can harm peoples physical and psychological
health. Health problems associated with stress.

Heart attack. Stroke. Hypertension. Migraine headache. Ulcers. Substance abuse. Overeating. Depression. Muscle aches.
Managers and team leaders should be alert to signs of
excessive stress.
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Study Question 5: How does stress affect people in change environments? Stress management.
Stress prevention. Taking action to keep stress from reaching destructive levels in the first place. Once stress has reached a destructive point,
special techniques of stress management can be implemented. Stress management.

Begins with the recognition of stress symptoms
and continues with actions to maintain a positive performance edge.

Study Question 5: How does stress affect people in change environments? Stress management (cont.).
Personal wellness.
Pursuit of ones job and career goals with the
support of a personal health promotion program.
Employee assistance programs.

Provide help for employees who are experiencing
personal problems and related stress.
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What is strategy and how is it linked to different types of organizational goals? What are the basic attributes of organizations? How is work organized and coordinated? What are bureaucracies and what are the common structures?
Study Question 1: What is strategy and how is it linked to different types of organizational goals? Strategy.
The process of positioning the organization in
the competitive environment and implementing actions to compete successfully.

A pattern in a stream of decisions.
Choices regarding goals and the way the firm
organizes to accomplish them.
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Study Question 1: What is strategy and how is it linked to different types of organizational goals? Elements of conventional strategy decisions.
Choosing the types of contributions the firm
intends to make to society.

Precisely whom the firm will serve. Exactly what the firm will provide to others.
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Study Question 1: What is strategy and how is it linked to different types of organizational goals?
Societal goals.
Reflect an organizations intended contributions to the
broader society.
Enable organizations to gain legitimacy, a social right
to operate, and more discretion for their non-societal goals and operating practices.
Enable organizations to make legitimate claims over
resources, individuals, markets, and products.

Study Question 1: What is strategy and how is it linked to different types of organizational goals? Societal contributions and mission statements.
A firms societal contribution is often part of
its mission statement.

A written statement of organizational purpose.
A good mission statement identifies whom the
firm will serve and how it will go about accomplishing its societal purpose.
Study Question 1: What is strategy and how is it linked to different types of organizational goals? Output goals.
Define the type of business the organization is
pursuing.
Provide some substance to the more general
aspects of mission statements.
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Study Question 1: What is strategy and how is it linked to different types of organizational goals?
Systems goals.
Concerned with the conditions within the organization
that are expected to increase the organizations survival potential.

Typical systems goals include growth, productivity,
stability, harmony, flexibility, prestige, and human resource maintenance.

Systems goals must often be balanced against one
another.
Study Question 1: What is strategy and how is it linked to different types of organizational goals? Well-defined systems goals can:
Focus managers attention on what needs to be
done. Provide flexibility in devising ways to meet important targets. Be used to balance the demands, constraints, and opportunities facing the firm. Form a basis for dividing the work of the firm.
Study Question 2: What are the basic attributes of organizations?

Successful organizations develop a structure consistent with the pattern of goals established by senior management. The formal structure shows the planned configuration of positions, job duties, and the lines of authority among different parts of the organization. The formal structure of the firm is also known as the division of labor.

Vertical specialization.
A hierarchical division of labor that distributes formal
authority and establishes where and how critical decisions are to be made.
Creates a hierarchy of authority.
An arrangement of work positions in order of increasing
authority.
Organization charts are diagrams that depict the
formal structures of organizations.

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Chain of command.
A listing of who reports to whom up and down the
organization.
Unity of command.
Each person has only one boss and each unit one
leader.
Span of control.
The number individuals reporting to a supervisor.

Line units.
Work groups that conduct the major business
of the organization.
Staff units.
Work groups that assist the line units by
providing specialized expertise and services to the organization.
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Internal versus external units.
Internal line units.
Transform raw materials and information into products and
services.
External line units.

Maintain outside linkages.
Internal staff units.

Assist the line units in performing their functions.
External staff units.

Assist the line units with outside linkages and act to buffer
internal operations.
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Some firms are outsourcing many of their staff functions. Use of information technology to streamline operations and reduce staff. Most organizations use a variety of means to specialize the vertical division of labor. Best pattern of vertical specialization depends on environment, size, technology, and goals.

Control.
The set of mechanisms used to keep actions or
outputs within predetermined limits.

Deals with:
Setting standards. Measuring results against standards. Instituting corrective action.

Output controls.
Focus on desired targets and allow managers
to use their own methods to reach defined targets. Part of overall method of managing by exception. Promote flexibility and creativity.
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Process controls.
Specify the manner in which tasks are
accomplished.
Types of process controls.
Policies, procedures, and rules. Formalization and standardization. Total quality management controls.

Policies, procedures, and rules.
Policies. Guidelines for action that outline important objectives and broadly indicate how activities are to be carried out. Procedures. Identify the best method for performing a task, show which aspects of a task are most important, or outline how an individual is to be rewarded.

Policies, procedures, and rules (cont.).
Rules. Describe in detail how a task or a series of tasks is to be performed, or indicate what cannot be done. Policies, procedures, and rules are often used
as substitutes for direct managerial supervision.
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Formalization.
The written documentation of policies,
procedures, and rules to guide behavior and decision making.
Standardization.
The degree to which the range of allowable
actions in a job or series of jobs is limited so that uniform actions occur.


Demings 14 points for achieving total quality management.
Create a consistency of purpose in the company to
innovate; put resources into research and education, and into maintaining equipment and new production aids.
Learn a new philosophy of quality to improve every
system.
Require statistical evidence of process control and
eliminate financial controls on production.


Demings 14 points for achieving total quality management (cont.).
Require statistical evidence of control in purchasing
parts. Use statistical methods to isolate the sources of trouble. Institute modern on-the-job training. Improve supervision to develop inspired leaders. Drive out fear and instill learning. Break down barriers between departments.

Demings 14 points for achieving total quality management (cont.).
Eliminate numerical goals and slogans. Constantly revamp work methods. Institute massive training programs for employees in
statistical methods.
Retrain people in new skills. Create a structure that will push, every day, on the
above 13 points.

Centralization and decentralization.
Centralization.
Degree to which the authority to make decisions is
restricted to higher levels of management.
Decentralization.
Degree to which the authority to make decisions is
given to lower levels in an organizations hierarchy.


Benefits of decentralization.
Higher subordinate satisfaction. Quicker response to a series of unrelated problems. Assists in on-the-job training of subordinates for higher-level positions Encourages participation in decision making.
Study Question 3: How is work organized and coordinated?

Horizontal specialization.
A division of labor that establishes specific
work units or groups within an organization.

Often referred to as departmentation. Whenever managers divide tasks and group
similar types of skills and resources together, they must also be concerned with coordination.
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Coordination.
The set of mechanisms that an organization
uses to link the actions of its units into a consistent pattern. Within a unit, much of the coordination is handled by its manager. Smaller organizations rely on management hierarchy for coordination. As the organization grows, more efficient and effective methods of coordination are required.

Personal methods of coordination.
Produce synergy by promoting dialogue, discussion,
innovation, creativity, and learning, both within and across units. Common personal methods of coordination are direct contact between and among organizational members and committee memberships. Mix of personal coordination methods should be tailored to subordinates, skills, abilities, and experiences.

Impersonal methods of coordination.
Produce synergy by stressing consistency and
standardization so that individual pieces fit together.

Often are refinements and extensions of process
controls.
Historical use of specialized departments to coordinate
across units.
Contemporary use of matrix departmentation and
management information systems for coordination.

Study Question 4: What are bureaucracies and what are the common structures?
Bureaucracy.
An ideal form of organization, the
characteristics of which were defined by the German sociologist Max Weber.

Relies on a division of labor, hierarchical
control, promotion by merit with career opportunities for employees, and administration by rule.
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Mechanistic type of bureaucracy (machine bureaucracy).

Emphasizes vertical specialization and control. Stresses rules, policies, and procedures; specifies techniques for decision making; and use well-documented control systems. Often used with a low cost leader strategy.
Study Question 4: What are bureaucracies and what are the common structures? Benefits of the mechanistic type.
Efficiency.
Limitations of the mechanistic type.

Employees dislike rigid designs, which makes work
motivation problematic. Unions may further solidify rigid designs. Key employees may leave. Hinders organizations capacity to adjust to subtle environmental changes or new technologies.
Organic type of bureaucracy (professional bureaucracy).

Horizontal specialization.
Procedures are minimal, and those that do
exist are not highly formalized.

Used to pursue strategies that emphasize
product quality, quick response to customers, or innovation.

Study Question 4: What are bureaucracies and what are the common structures? Benefits of the organic type.
Good for problem solving and serving individual
customer needs. Centralized direction by senior management is less intense. Good at detecting external changes and adjusting to new technologies.
Limitations of the organic type.

Less efficient than mechanistic type. Restricted capacity to respond to central management
direction.
Common types of hybrid structures.

Divisional firm.
Composed of quasi-independent divisions so that
different divisions can be more or less organic or mechanistic.
Conglomerate.
A single corporation that contains a number of
unrelated businesses.
The conglomerate simultaneously illustrates three key points that will be the focus of Chapter 18.
All structures are combinations of the basic
elements. There is no one best structure. The firm does not stand alone but is part of a larger network of firms that compete against other networks.

What is organizational design and how is it linked to strategy? What is information technology and how is it used? Can the design of the firm co-evolve with the environment? How does a firm learn and continue to learn over time?
Study question 1: What is organizational design and how is it linked to strategy? Organizational design.
The process of choosing and implementing a
structural configuration. The choice of an appropriate organizational design depends on the firms:

Size. Operations and information technology. Environment. Strategy for growth and survival.
Study question 1: What is organizational design and how is it linked to strategy?

The structural configuration of organizations should:
Enable senior executives to emphasize the skills and
abilities that their firms need to compete, and to remain agile and dynamic in a rapidly changing world.
Allow individuals to experiment, grow, and develop
competencies so that the strategy of the firm can evolve.

Study question 1: What is organizational design and how is it linked to strategy? Co-evolution.
The firm can adjust to external changes even
as it shapes some of the challenges facing it. Shaping capabilities via the organizations design is a dynamic aspect of co-evolution. Even with co-evolution, managers must maintain a recognizable pattern of choices in organizational design.
Study question 1: What is organizational design and how is it linked to strategy? Organizational size.
As the number of employees increase, the
possible interconnections among them increase even more.

The design of small firms is directly
influenced by core operations technology.

Larger firms have many core operations
technologies in a variety of specialized units.


The simple design for smaller units and firms.
A configuration involving one or two ways of
specializing individuals and units.

Vertical specialization and control emphasize levels of
supervision without elaborate formal mechanisms.

Appropriate for many smaller firms because of
simplicity, flexibility, and responsiveness to a central manager.


Organizational design must be adjusted to fit technological opportunities and requirements.
Operations technology.
The combination of resources, knowledge, and techniques
that creates a product or service output.
Information technology.
The combination of machines, artifacts, procedures, and
systems used to gather, store, analyze, and disseminate information for translating it into knowledge.
Study question 1: What is organizational design and how is it linked to strategy? Thomsons view of technology.
Technologies classified according to the
degree of specification and degree of interdependence of work units.

Intensive technology.
Uncertainty as to how to produce desired outcomes.
Study question 1: What is organizational design and how is it linked to strategy? Thomsons view of technology (cont.).
Mediating technology.
Links parties that want to become interdependent.
Long-linked technology.
The way to produce desired outcomes is known and broken down into a number of sequential steps.
573

Woodwards view of technology.
Small-batch production. The organization tailor makes a variety of custom
products to fit customer specifications.

Mass production. The organization produces one or a few products
through an assembly line system.

Continuous-process technology. The organization produces a few products using
considerable automation.
Study question 1: What is organizational design and how is it linked to strategy? Woodwards view of technology (cont.).
The proper matching of structure and
technology is critical to organizational success.

Successful small-batch and continuous-process
plants have flexible structures with small work groups at the bottom.
Successful mass production operations are rigidly
structured and have large work groups at the bottom.

Study question 1: What is organizational design and how is it linked to strategy? Adhocracy.
An appropriate structural design when
managers and employees do not know the appropriate way to service a client or produce a particular product.
576
Study question 1: What is organizational design and how is it linked to strategy? An adhocracy is characterized by:
Few rules, policies, and procedures. Substantial decentralization. Shared decision making among members. Extreme horizontal specialization. Few levels of management. Virtually no formal controls.
Study question 1: What is organizational design and how is it linked to strategy? An adhocracy is useful when:
The tasks facing the firm vary considerably
and provide many exceptions.

Problems are difficult to define and solve.
578
Study Question 2:What is information technology and how is it used? Why IT makes a difference.
IT provides a partial substitute for: Some operations. Some process controls. Some impersonal methods of coordination. IT provides a strategic capability. IT provides a capability for transforming
information to knowledge for learning.

Study Question 2:What is information technology and how is it used? Information technology as a substitute.
Initial implementation of IT often displaced
routine, highly specified, and repetitious jobs.

Did not alter fundamental character or design of
the organization.
A second wave of substitution replaced
process controls and informal coordination mechanisms with IT.

Brought some marginal changes in organizational
design.
Study Question 2:What is information technology and how is it used?

Information technology as a strategic capability.
IT has been used to improve the efficiency, speed of
responsiveness, and effectiveness of operations.

IT provides individuals the information they need to
plan, make choices, coordinate with others, and control their own operations.
This new strategic IT capability resulted from IT
being broadly available to everyone.

Study Question 2:What is information technology and how is it used? IT and learning.
IT systems empower individuals and expand
their jobs.
IT encourages the development of a virtual
network.
IT transforms how people manage.
Study Question 2:What is information technology and how is it used? IT and e-business.
Many dot-com firms adopted some variation
of adhocracy. As the dot-coms grew, the adhocracy design became problematic.

Limits on the size of an effective adhocracy. Actual delivery of products and services rested
more on responsiveness to clients and maintaining efficiency than on continual innovation.

Study Question 3: Can the design of the firm co-evolve with the environment?
Understanding the environment is important because an organization is an open system. General environment.
The set of cultural, economic, legal-political, and
educational conditions found in the areas in which the organization operates.
Specific environment.
The owners, suppliers, distributors, government
agencies, and competitors with which an organization must interact to grow and survive.
Study Question 3: Can the design of the firm co-evolve with the environment? Environmental complexity.
The magnitude of problems and opportunities
in the organizations environment, as reflected in:

Degree of richness. Degree of interdependence. Degree of uncertainty.
More complex environments provide more
problems and opportunities.

Study Question 3: Can the design of the firm co-evolve with the environment? Environmental richness.
The environment is richer when: The economy is growing. Individuals are improving their education. Those on whom the organization relies are prospering. A rich environment has more opportunities
and dynamism. The opposite of richness is decline.

Study Question 3: Can the design of the firm co-evolve with the environment? Environmental interdependence.
Linkage between environmental independence
and organization design may be subtle and indirect.

Organization may co-opt powerful outsiders. Organization may absorb or buffer demands of
powerful external elements.

Study Question 3: Can the design of the firm co-evolve with the environment? Environmental uncertainty.
Uncertainty and volatility can be particularly
damaging to large bureaucracies.

A more organic form is the appropriate
organizational design response to uncertainty and volatility.

Adhocracy may be needed extreme
uncertainty and volatility.

Study Question 3: Can the design of the firm co-evolve with the environment? In a complex global economy, firms must learn to co-evolve by altering their environment. Two important ways of co-evolution:
Management of networks. Development of alliances.
Study Question 3: Can the design of the firm co-evolve with the environment? Networks and alliances around the world.
Informal combines or cartels exist in Europe
but are illegal in the United States except in rare cases. Networks are called keiretsu in Japan.
Bank-centered keiretsu. Vertical keiretsu.
In the United States, outsourcing is developing
as a specialized form of network organization.

Study Question 3: Can the design of the firm co-evolve with the environment? Interfirm alliances.
Announced cooperative agreements or joint
ventures between two independent firms. Alliances are quite common in high technology industries. Since firms cooperate rather than compete; consequently, both the alliance managers and sponsoring executives must be patient, flexible, and creative in pursuing goals.
Study Question 3: Can the design of the firm co-evolve with the environment? Virtual organization.
An ever-shifting constellation of firms, with a
lead corporation, that pool skills, resources, and experiences to thrive jointly.
A design option when internal and external
contingencies are changing quickly.

Study Question 3: Can the design of the firm co-evolve with the environment?
Key to making a virtual organization work.
The production system needs to be in a partner
network bound together by mutual trust and survival. The partner network needs to develop and maintain an advanced IT, trust and cross-owning of problems and solutions, and a common shared culture. The lead firm must take responsibility for the whole network and coordinate member firm actions. The lead corporation and the partners need to rethink how they are internally organized and managed.
Study Question 3: Can the design of the firm co-evolve with the environment? Boundaryless organization.
A design option that eliminates vertical,
horizontal, external, and geographic barriers that block desired action.

Actions to create a boundaryless organization.
Executives should systematically examine the
organization and its processes.

Organization members should initiate a process of
improving their cooperation.

Study Question 4: How does a firm learn and continue to learn over time?
Organizational learning.
Process of knowledge acquisition, information
distribution, information interpretation, and information retention in adapting successfully to changing circumstances.
Adjustment of organizations and individuals actions
based on experience.
The key to successful co-evolution.
Study Question 4: How does a firm learn and continue to learn over time? Mimicry.
Occurs when managers copy what they believe
are the successful practices of others Is important to new firms.

Provides workable, if not ideal, solutions to many
problems. Reduces the number of decisions that need to be analyzed separately. Establishes legitimacy or acceptance and narrows the choices requiring detailed explanation.
Study Question 4: How does a firm learn and continue to learn over time? Experience.
A primary way to acquire knowledge. Besides learning by doing, managers can also systematically embark on structured programs to capture the lessons to be learned. The major problem with emphasizing learning by doing is the inability to precisely forecast changes.
Study Question 4: How does a firm learn and continue to learn over time?
598
Study Question 4: How does a firm learn and continue to learn over time? Scanning.
Involves looking outside the firm and bringing
back useful solutions.
Grafting.
The process of acquiring individuals, units, or
firms to bring in useful knowledge.

Study Question 4: How does a firm learn and continue to learn over time? Common problems in information interpretation.
Self-serving interpretations. People seeing what they want to see, rather than seeing what is. Managerial scripts. A series of well-known routines for problem identification and alternative generation and analysis that are commonly used by a firms managers.
Study Question 4: How does a firm learn and continue to learn over time? Organizational myths.
Commonly held cause-effect relationships or
assertions that cannot be empirically supported.

Common myths.
Single organizational truth. Presumption of competence. Denial of tradeoffs.
Study Question 4: How does a firm learn and continue to learn over time? Information retention mechanisms.
Individuals. Organizational culture. Transformation mechanisms. Formal organizational structures. Ecology. External archives. Internal information technologies.
Study Question 4: How does a firm learn and continue to learn over time? Deficit cycles.
A pattern of deteriorating performance that is
followed by even further deterioration.

Factors associated with deficit cycles.
Organizational inertia. Hubris. Detachment.
603
Study Question 4: How does a firm learn and continue to learn over time? Benefit cycles.
A pattern of successful adjustment followed
by further improvements.
Firms can successfully co-evolve by initiating
a benefit cycle.
The firm develops adequate mechanisms for
learning.

What is organizational culture? How do you understand an organizational culture? How can the organizational culture be managed? How can you use organizational development to improve the firm?
Study Question 1: What is organizational culture?

Organizational culture.
The system of shared actions, values, and
beliefs that develops within an organization and guides the behavior of its members.
Called corporate culture in the business
setting.
No two organizational cultures are identical.

External adaptation.
Involves reaching goals and dealing with
outsiders regarding tasks to be accomplished, methods used to achieve the goals, and methods of coping with success and failure.
Important aspects of external adaptation.
Separating eternal forces based on importance. Developing ways to measure accomplishments. Creating explanations for not meeting goals.

External adaptation involves answering important goal-related questions regarding coping with reality.

What is the real mission? How do we contribute? What are our goals? How do we reach our goals? What external forces are important? How do we measure results? What do we do if specific targets are not met? How do we tell others how good we are? When do we quit?

Internal integration.
Deals with the creation of a collective identity
and with finding ways of matching methods of working and living together. Important aspects of working together.
Deciding who is a member and who is not. Developing an understanding of acceptable and
unacceptable behavior. Separating friends from enemies.


Internal integration involves answering important questions associated with living together.
What is our unique identity? How do we view the world? Who is a member? How do we allocate power, status, and authority? How do we communicate? What is the basis for friendship?

Subculture.
A group of individuals with a unique pattern
of values and philosophy that are not inconsistent with the organizations dominant values and philosophy.
Counterculture.
A group of individuals with a pattern of values
and philosophy that outwardly reject the surrounding culture.


Problems associated with subcultural divisions within the larger culture.
Subordinate groups are likely to form into a
counterculture pursuing self-interests.

The firm may encounter extreme difficulty in coping
with broader cultural changes.

Embracing natural divisions from the larger culture
may lead to difficulty in international operations.


Taylor Coxs five step program.
Step 1: The organization should develop pluralism. Step 2: The organization should fully integrate its
structure. Step 3: The organization must integrate the informal networks. Step 4: The organization should break the linkage between naturally occurring group identity and organizational identity. Step 5: The organization must actively work to eliminate identity-based interpersonal conflict.
Study Question 2: How do you understand an organizational culture?
614
Study Question 2: How do you understand an organizational culture?

Sagas.
Heroic accounts of organizational accomplishments.
Rites.
Standardized and recurring activities that are used at
special times to influence organizational members.
Rituals.
Systems of rites.
Cultural symbols.
Any object, act, or event that serves to transmit
cultural meaning.
Study Question 2: How do you understand an organizational culture? Culture often specifies rules and roles.
Rules.
The various types of actions that are appropriate.
Roles.
Where individual members stand in the social
system.
616
Study Question 2: How do you understand an organizational culture? Shared values.

Help turn routine activities into valuable and
important actions.
Tie the organization to the important values of
society.
May provide a very distinctive source of
competitive advantage.
Study Question 2: How do you understand an organizational culture? Characteristics of strong corporate cultures.
A widely shared real understanding of what
the firm stands for, often embodied in slogans. A concern for individuals over rules, policies, procedures, and adherence to job duties. A recognition of heroes whose actions illustrate the companys shared philosophy and concerns.
Study Question 2: How do you understand an organizational culture? Characteristics of strong corporate cultures (cont.).
A belief in ritual and ceremony as important to
members and to building a common identity. A well-understood sense of the informal rules and expectations so that employees and managers know what is expected of them. A belief that what employees and managers do is important and that it is essential to share information and ideas.
Study Question 2: How do you understand an organizational culture? Organizational myths.

Unproven and often unstated beliefs that are
accepted uncritically. Myths enable managers to redefine impossible problems. Myths can facilitate experimentation and creativity. Myths allow managers to govern.
Study Question 2: How do you understand an organizational culture? National culture influences.
Widely held common assumptions may be
traced to the larger culture of the host society.

National cultural values may become
embedded in expectations of organization members.

Study Question 3: How can the organizational culture be managed?

Strategies for managing corporate culture.
Managers help modify observable culture,
shared values, and common assumptions directly.

Use of organizational development techniques
to modify specific elements of the culture.
622

Why a well-developed management philosophy is important.
Establishes generally understood boundaries
on all members of the firm. Provides a consistent way for approaching new and novel situations. Helps hold individuals together by showing them a known path to success.

Strategies for building, reinforcing, and changing organizational culture.
Directly modifying the visible aspects of culture. Changing the lessons to be drawn from common
stories.
Setting the tone for a culture and for cultural change. Fostering a culture that addresses questions of external
adaptation and internal integration.


Mistakes that managers can make in building, reinforcing, and changing culture.
Trying to change peoples values from the top
down:
While keeping the ways in which the organization
operates the same.

Without recognizing the importance of individuals. Attempting to revitalize an organization by
dictating major changes and ignoring shared values.

Study Question 4: How can you use organization development to improve the firm?
Organization development (OD).

The application of behavioral science
knowledge in a long-range effort to improve an organizations ability to cope with change in its external environment and to increase its internal problem-solving capabilities.
Organizational development.
Designed to work on both issues of external
adaptation and internal integration.

Used to improve organizational performance. Seeks to achieve change so the organizations
members maintain the culture and longer-run organizational effectiveness.

Study Question 4: How can you use organization development to improve the firm? Underlying assumptions of OD.
Individual level. Respect for people and their capabilities.
Group level.
Belief that groups can be good for both people and organizations.
Organizational level.
Respect for the complexity of an organization as a system of interdependent parts.

Organization development goals.

Outcome goals.
Mainly deal with issues of external adaptation.
Process goals.
Mainly deal with issues of internal integration.
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Study Question 4: How can you use organization development to improve the firm? In pursuing outcome and process goals, OD helps by:
Creating an open problem solving climate. Supplementing formal authority with knowledge and
competence. Moving decision making where relevant information is available. Building trust and maximizing collaboration. Increasing the sense of organizational ownership. Allowing people to exercise self-direction and selfcontrol.
Action research.
The process of systematically collecting data
on an organization, feeding it back to the members for action planning, and evaluating results by collecting and reflecting on more data after the planned actions have been taken.
632
633
Organizationwide OD interventions.
Survey feedback. Collection and feedback of data to organization members for action planning purposes. Confrontation meetings. Activities for quickly determining how an organization can be improved and taking initial actions for betterment.
634
Organizationwide OD interventions (cont.).

Structural redesign. Realigning the organizations structure or major subsystems. Collateral organization. Using representative organizational members in periodic small group problem-solving sessions.
Group and intergroup OD interventions.

Team building. Activities to improve the functioning of a group. Process consultation. Activities to improve the functioning of key group processes. Intergroup team building. Activities to improve the functioning or two or more groups.
Individual OD interventions.
Role negotiation. Clarifying expectations in working relationships. Job redesign. Creating long-term congruence between individual goals and organizational career opportunities. Career planning. Structured opportunities for individuals to work with managers or staff experts on career issues.
Thank You
www.bookfiesta4u.com
Organizational Behavior: Chapter 1 www.bookfiesta4u.com
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Organizational Behavior

Schermerhorn, Schermerhorn, Hunt, and Osborn

Chapter 1 Study Questions

creativity, and learning.

Study Question 1: What is organizational behavior and why is it important?

Pick up Figure 1.1 from the textbook.

Organizational Behavior: Chapter 1

Study Question 1: What is organizational behavior and why is it important?

Study Question 2: What are organizations like as work settings?

Organizational Behavior: Chapter 1

Study Question 2: What are organizations like as work settings?

Organizational Behavior: Chapter 1

Study Question 2: What are organizations like as work settings? Stakeholders.

Study Question 2: What are organizations like as work settings?

Success in business world is tied to valuing diversity.

Study Question 3: What is the nature of managerial work?

directly supporting the work efforts of others.

coordinator, coach, or team leader.

Study Question 3: What is the nature of managerial work?

Study Question 3: What is the nature of managerial work?

Organizational Behavior: Chapter 1

Study Question 3: What is the nature of managerial work?

Study Question 3: What is the nature of managerial work?

Organizational Behavior: Chapter 1

Study Question 3: What is the nature of managerial work?

operations and decisions.

Study Question 3: What is the nature of managerial work?

action that results in a desired performance.

Study Question 4: How do we learn about organizational behavior?

Study Question 4: How do we learn about organizational behavior?

Organizational Behavior: Chapter 1

Study Question 4: How do we learn about organizational behavior?

Organizational Behavior: Chapter 1

Chapter 2 Study Questions

Study Question 1: What is a highperformance organization?

Organizational Behavior: Chapter 2

Study Question 1: What is a highperformance organization? Stakeholders.

organizations affected by an organizations performance.

satisfies the needs of strategic constituencies.

Study Question 1: What is a highperformance organization?

Organizational Behavior: Chapter 2

Study Question 1: What is a highperformance organization?

Study Question 1: What is a highperformance organization?

abilities, knowledge, ideas, energies, and commitments.

create value for the organization.

competencies, creativity, and commitment within an organizations workforce.

Study Question 1: What is a highperformance organization?

relationships maintained among people at work.

Study Question 1: What is a highperformance organization?

Study Question 1: What is a highperformance organization?

Organizational Behavior: Chapter 2

age, race, ethnicity, gender, physical ability, and sexual orientation.

individual differences in the workplace.

respects and values diversity.

Diversity biases in the workplace.

Organizational Behavior: Chapter 2

A diversity mature organization is created when:

Well-managed workforce diversity increases human capital.

or wrong in a particular setting.

Study question 3: How do ethics and

their personal behavior .

Organizational Behavior: Chapter 2