Chapter 10 Summary

Foundations of Organizational Design

#1# Designing Organizational Structure

Organizing : arranging and structuring work to accomplish organizational goals

Organizational structure : formal arrangement of jobs within an organization

Organizational chart : the visual representation of an organizations structure

Organizational design : creating or changing an organizations structure

6 key elements in Organizational Design

a. Work specialization

Dividing work activities into separate job tasks

It helps employees to be more efficient

b. Departmentalization

The basis of which jobs are grouped together

The five common forms of departmentalization

1. Functional departmentalization

2. Geographical departmentalization

3. Product departmentalization

4. Process departmentalization

5. Customer departmentalization

Cross functional team : a work team composed of individuals from various functional

specialties

c. Chain of command

The line of authority extending from upper organizational levels to the lowest levels, which

clarifies who reports to whom

Authority : the rights inherent in a managerial position to tell people what to do and to

expect them to do it

Type of Authority :

1. Line Authority : authority that entitles a manager to direct the work of an employee

2. StaffAuthority : positions with some authority have been created to support, assist,

and advise those holding the authority

Responsibility - the obligation or expectation to perform.

Unity of Command - the concept that a person should have one boss and should report only

to that person

d. Span of control

The number of employees who can be effectively and efficiently supervised by a manager.

e. Centralization and decentralization

Centralization - the degree to which decision making is concentrated at upper levels in the

organization.

This is common in organizations in which top managers make all the decisions and lower-

level employees simply carry out those orders.

Decentralization - when an organization relegates decision making to managers who are

closest to the action.

Employee Empowerment : increasing the decision-making authority (power) of employees

f. Formalization

Formalization - the degree to which jobs within the organization are standardized and the

extent to which employee behavior is guided by rules and procedures.

Highly formalized jobs offer little discretion over what is to be done.

Low formalization means fewer constraints on how employees do their work.

#2# Mechanistic & Organic Organization

Mechanistic organization : the natural result of combining the six elements of structure

Organic organization : a highly adaptive reform that is as loose and flexible as the mechanistic organization is

rigid and stable

#3# Contingency Factors Affecting Structural Coice

Structural decisions are influenced by:

1. Overall strategy of the organization

2. Size of the organization

3. Technology use employed by the organization

4. Degree of environmental uncertainty

Strategy Frameworks:

1. Innovation : pursuing competitive advantage through meaningful and unique innovations favors an

organic structuring

2. Cost minimization : focusing on tightly controlling costs requires a mechanistic structure for the

organization

Strategy and Structure

Achievement of strategic goals is facilitated by changes in organizational structure that accommodate and

support change.

Size and Structure

As an organization grows larger, its structure tends to change from organic to mechanistic with increased

specialization, departmentalization, centralization, and rules/regulations.

Technology and Structure

Organizations adapt their structures to their technology.

Woodwards classification of firms based on the complexity of the technology employed:

1. Unit production of single units or small batches

2. Mass production of large batches of output

3. Process production in continuous process of outputs

Routine technology = mechanistic organizations

Non-routine technology = organic organizations

Environmental Uncertainty and Structure

Mechanistic organizational structures tend to be most effective in stable and simple environments.

The flexibility of organic organizational structures is better suited for dynamic and complex

environments.

#4# Traditional Organizational Design

Simple structure

Low departmentalization, wide spans of control, centralized authority, little formalization

Functional structure

Departmentalization by function

Operations, finance, marketing, human resources, and product research and development

Divisional structure

Composed of separate business units or divisions with limited autonomy under the

coordination and control of the parent corporation

Chapter 11 Summary

Contemporary Organizational Design #1# Contemporary Organizational Design

A. Team Structure

Team Structure - an organizational structure in which the entire organization is made up of work teams

B. Matrix & Project Structure

Matrix Structure - an organizational structure that assigns specialists from different functional departments

to work on one or more projects

Project Structure - an organizational structure in which employees continuously work on projects

C. Boundaryless Organization

Boundaryless Organization - an organization whose design is not defined by, or limited to, the horizontal,

vertical, or external boundaries imposed by a predefined structure

What are the boundaries?

1. External : the boundaries that separate the organization from its customers, suppliers, and

stakeholders

2. Internal : horizontal ones imposed by work specialization, and departmentalization ; vertical ones

that separate employees into organizational levels and hierarchies

To minimize or eliminate these boundaries, managers might use :

1. Virtual Organization - an organization that consists of a small core of full-time employees and

outside specialists temporarily hired as needed to work on projects.

2. Network Organization - an organization that uses its own employees to do some work activities and

networks of outside suppliers to provide other needed product components or work processes.

D. Learning Organization

Learning Organization - an organization that has developed the capacity to continuously learn, adapt, and

change

#2# Organizing for Collaboration

A. Internal Collaboration

Cross-functional team - a work team composed of individuals from various functional specialties.

Task force (or ad hoc committee) - a temporary committee or team formed to tackle a specific short-term

problem affecting several departments.

Communities of practice - groups of people who share a concern, a set of problems, or a passion about a

topic, and who deepen their knowledge and expertise in that area by interacting on an ongoing basis.

B. External Collaboration

Open innovation - opening up the search for new ideas beyond the organizations boundaries and allowing

innovations to easily transfer inward and outward.

Strategic partnerships - collaborative relationships between two or more organizations in which they

combine their resources and capabilities for some business purpose.

#3# Flexible Work Arrangements

Telecommuting - a work arrangement in which employees work at home and are linked to the workplace by

computer.

Compressed workweek - a workweek where employees work longer hours per day but fewer days per week

Flextime (or flexible work hours) - a scheduling system in which employees are required to work a specific

number of hours a week but are free to vary those hours within certain limits.

Job sharing - the practice of having two or more people split a full-time job.

#4# Contingent Workforce

Contingent workers - temporary, freelance, or contract workers whose employment is contingent upon

demand for their services.

Chapter 12 Summary

Human Resource Management #1# The Human Resource Management Process

A. Why is HRM Important

As a significant source of competitive advantage

People-oriented HR creates superior shareholder value

As an important strategic tool

Achieve competitive success through people by treating employees as partners

To improve organizational performance

High performance work practices lead to both high individual and high organizational performance

High-performance work practices - work practices that lead to both high individual and high organizational

performance

B. External Factors That Affect the HRM process

Economys Effect

Labor union - an organization that represents workers and seeks to protect their interests through

collective bargaining

Legal Environment

Affirmative Action - organizational programs that enhance the status of members of protected

groups

Work councils - groups of nominated or elected employees who must be consulted when

management makes decisions involving personnel

Board representatives - employees who sit on a companys board of directors and represent the

interests of the firms employees

Demographic Trends

#2# Identifying and Selecting Competent Employees

Human resource planning - ensuring that the organization has the right number and kinds of capable people

in the right places and at the right times

HR planning consists of 2 steps :

1. Current assessment

Job analysis - an assessment that defines jobs and the behaviors necessary to perform them

Job description - a written statement that describes a job

Job specification - a written statement of the minimum qualifications that a person must

possess to perform a given job successfully

2. Meeting future HR needs

Determined by organizations mission, goals, and strategies

Recruitment & Decruitment

Recruitment - locating, identifying, and attracting capable applicants

Decruitment - reducing an organizations workforce

Selection

Selection - screening job applicants to ensure that the most appropriate candidates are hired

Type of Selection Tools :

1. Application form

2. Written tests

3. Performance-simulation tests

4. Interviews

5. Background investigations

6. Physical examination

Realistic Job Preview (RJP) - a preview of a job that provides both positive and negative information

about the job and the company

#3# Providing Employees With Needed Skills & Knowledge

Orientation - introducing a new employee to his or her job and the organization

Training : profession, mandatory, management training

#4# Retaining Competent, High Performing Employees

Performance management system - establishes performance standards that are used to evaluate employee

performance

Compensation & Benefits

Skill-based pay - a pay system that rewards employees for the job skills they can demonstrate

Variable pay - a pay system in which an individuals compensation is contingent on performance

#5# Contemporary Issues in HRM

Downsizing - the planned elimination of jobs in an organization

Sexual harassment - any unwanted action or activity of a sexual nature that explicitly or implicitly affects an

individuals employment, performance, or work environment

Family-friendly benefits - benefits that accommodate employees needs for worklife balance

Chapter 13 Summary

Groups & Teams

#1# Groups & Group Development

Group - two or more interacting and interdependent individuals who come together to achieve specific goals.

Formal groups

Work groups defined by the organizations structure that have designated work assignments and

tasks

Informal groups

Groups that are independently formed to meet the social needs of their members

Stages of Group Development :

1. Forming stage - the first stage of group development in which people join the group and then define

the groups purpose, structure, and leadership

2. Storming stage - the second stage of group development, characterized by intragroup conflict

3. Norming stage - the third stage of group development, characterized by close relationships and

cohesiveness.

4. Performing stage - the fourth stage of group development when the group is fully functional and

works on group task.

5. Adjourning - the final stage of group development for temporary groups during which group

members are concerned with wrapping up activities rather than task performance.

#2# Work Group Performance & Satisfaction

A. Group Structure

Role - behavior patterns expected of someone occupying a given position in a social unit.

Norms - standards or expectations that are accepted and shared by a groups members.

Groupthink - when a group exerts extensive pressure on an individual to align his or her opinion with that of

others

Status - a prestige grading, position, or rank within a group.

Social loafing - the tendency for individuals to expend less effort when working collectively than when

working individually.

Group cohesiveness - the degree to which group members are attracted to one another and share the

groups goals.

Conflict Management

Conflict - perceived incompatible differences that result in interference or opposition.

Traditional view of conflict - the view that all conflict is bad and must be avoided.

Human relations view of conflict - the view that conflict is a natural and inevitable outcome in any

group

Interactionist view of conflict - the view that some conflict is necessary for a group to perform

effectively.

Functional conflicts - conflicts that support a groups goals and improve its performance.

Dysfunctional conflicts - conflicts that prevent a group from achieving its goals.

Task conflict - conflicts over content and goals of the work.

Relationship conflict - conflict based on interpersonal relationships.

Process conflict - conflict over how work gets done.

#3# Turning Groups Into Effective Teams

Work teams - groups whose members work intensely on a specific, common goal using their positive synergy,

individual and mutual accountability, and complementary skills.Multidomestic corporation : one type of MNC

which decentralizes management and other decisions to the local country (reflects polycentric attitude). E.g.

Nestl

Problem-solving team - a team from the same department or functional area thats involved in efforts to

improve work activities or to solve specific problems.

Self-managed work team - a type of work team that operates without a manager and is responsible for a

complete work process or segment.

Cross-functional team - a work team composed of individuals from various functional specialties.

Virtual team - a type of work team that uses technology to link physically dispersed members in order to

achieve a common goal

Advantages In Using Teams

Teams outperform individuals.

Teams provide a way to better use employee talents.

Teams are more flexible and responsive.

Teams can be quickly assembled, deployed,

refocused, and disbanded.

Characteristics of Effective Teams

Have a clear understanding of their goals

Have competent members with relevant technical and interpersonal skills

Exhibit high mutual trust in the character and integrity of their members

Are unified in their commitment to team goals

Have good communication systems

Possess effective negotiating skills

Have appropriate leadership

Have both internally and externally supportive environments

#4# Current Challenges In Managing Teams

Social Network

The patterns of informal connections among individuals within groups.

The Importance of Social Networks

1. Relationships can help or hinder team effectiveness.

2. Relationships improve team goal attainment and increase member commitment to the team.

Chapter 14 Summary

Foundations Of Individual Behavior

#1# Focus & Goals Of Organizational Behavior

Behavior - the actions of people.

Organizational behavior - the study of the actions of people at work.

Focus Of Organizational Behavior :

1. Individual behavior : attitudes, personality, etc

2. Group behavior : norms, roles, team buildings, leadership, and conflict

3. Organizational aspects : structure, culture, HR policies and practices

Goals Of Organizational Behavior

The goals of OB are to explain, predict, and influence behavior

Employee productivity - a performance measure of both efficiency and effectiveness.

Absenteeism - the failure to show up for work.

Turnover - the voluntary and involuntary permanent withdrawal from an organization.

Organizational Citizenship Behavior (OCB) - discretionary behavior that is not part of an employees

formal job requirements, but which promotes the effective functioning of the organization.

Job satisfaction - an employees general attitude toward his or her job.

Workplace misbehavior - any intentional employee behavior that is potentially damaging to the

organization or to individuals within the organization.

#2# Attitudes & Job Performance

Attitudes - evaluative statements, either favorable or unfavorable, concerning objects, people, or events.

There are 3 types made up attitudes :

Cognitive component - that part of an attitude thats made up of the beliefs, opinions, knowledge, or

information held by a person.

Affective component - that part of an attitude thats the emotional or feeling part.

Behavioral component - that part of an attitude that refers to an intention to behave in a certain way

toward someone or something.

A. Job Satisfaction

how satisfied are the employees

B. Job Involvement & Organizational Commitment

Job involvement - the degree to which an employee identifies with his or her job, actively participates in it,

and considers his or her job performance to be important to self-worth.

Organizational commitment - the degree to which an employee identifies with a particular organization and

its goals and wishes to maintain membership in that organization.

Perceived organizational support - employees general belief that their organization values their

contribution and cares about their well-being.

C. Employee Engagement

Employee engagement - when employees are connected to, satisfied with, and enthusiastic about their jobs.

D. Attitudes & Consistency

how employees perform their attitudes consistently

E. Cognitive Dissonance Theory

Cognitive dissonance - any incompatibility or inconsistency between attitudes or between behavior and

attitudes.

F. Attitudes Survey

Attitude surveys - surveys that elicit responses from employees through questions about how they feel about

their jobs, work groups, supervisors, or the organization.

#3# Personality

Personality - the unique combination of emotional, thought, and behavioral patterns that affect how a

person reacts to situations and interacts with others.

MBTI popular test of knowing personality

Big Five Model - personality trait model that includes extraversion, agreeableness, conscientiousness,

emotional stability, and openness to experience.

Additional Personality Insights

Locus of control : the degree of which people believe that they are masters of their own fate

Machiavellianism - a measure of the degree to which people are pragmatic, maintain emotional

distance, and believe that ends justify means.

Self-esteem - an individuals degree of like or dislike for him/herself.

Self-monitoring - a personality trait that measures the ability to adjust behavior to external

situational factors.

Risk-taking

Other personality traits :

Proactive personality - a trait belonging to people who identify opportunities, show initiative, take

action, and persevere until meaningful change occurs.

Resilience - an individuals ability to overcome challenges and turn them into opportunities.

Emotions & EI

Emotions - intense feelings that are directed at someone or something.

Emotional Intelligence (EI) - the ability to notice and to manage emotional cues and information.

#4# Perception

Perception - a process by which we give meaning to our environment by organizing and interpreting sensory

impressions.

Attribution Theory - how the actions of individuals are perceived by others depends on what meaning

(causation) we attribute to a given behavior.

Internally caused behavior: under the individuals control

Externally caused behavior: due to outside factors

Fundamental attribution error - the tendency to underestimate the influence of external factors and

to overestimate the influence of internal or personal factors.

Self-serving bias - the tendency of individuals to attribute their successes to internal factors while

blaming personal failures on external factors.

Shortcuts Used In Judging Others

Assumed similarity - the assumption that others are like oneself.

Stereotyping - judging a person on the basis of ones perception of a group to which he or she

belongs.

Halo effect - a general impression of an individual based on a single characteristic.

#5# Learning

Learning - any relatively permanent change in behavior that occurs as a result of experience.

Almost all complex behavior is learned.

Learning is a continuous, life-long process.

The principles of learning can be used to shape behavior.

Theories of learning:

Operant conditioning

Social learning

Operant conditioning - a theory of learning that says behavior is a function of its consequences

Operant behavior: voluntary or learned behaviors

Behaviors are learned by making rewards contingent to behaviors.

Behavior that is rewarded (positively reinforced) is likely to be repeated.

Behavior that is punished or ignored is less likely to be repeated.

Social learning theory - a theory of learning that says people can learn through observation and direct

experience.

Attentional: the attractiveness or similarity of the model

Retention: how well the model can be recalled

Motor reproduction: the reproducibility of the models actions

Reinforcement: the rewards associated with learning the model behavior

Shaping behavior - the process of guiding learning in graduated steps using reinforcement or lack of

reinforcement.

Shaping methods:

Positive reinforcement: rewarding desired behaviors

Negative reinforcement: removing an unpleasant consequence once the desired behavior is

exhibited

Punishment: penalizing an undesired behavior

Extinction: eliminating a reinforcement for an undesired behavior

#6# Contemporary Issues

Managing Generational Differences in the Workplace

Gen Y: individuals born after 1978

Bring new attitudes to the workplace that reflect wide arrays of experiences and

opportunities

Want to work, but dont want work to be their life

Challenge the status quo

Have grown up with technology

Chapter 15 Communication What is Communication?

Communication - the transfer and understanding of meaning.

Transfer means the message was received in a form that can be interpreted by the receiver. Understanding the message is not the same as the receiver agreeing with the message.

Interpersonal Communication - communication between two or more people. Organizational Communication - all the patterns, networks, and systems of communications within an

organization. Functions of Communication:

Control Formal and informal communications act to control individuals behaviors in organizations.

Motivation Communications clarify for employees what is to be done, how well they have done it, and what can be done to improve performance.

Emotional Expression Social interaction in the form of work group communications provides a way for employees to express themselves.

Information Individuals and work groups need information to make decisions or to do their work. Interpersonal Communication

Communication process - the seven elements involved in transferring meaning from one person to another. Noise - any disturbances that interfere with the transmission, receipt, or feedback of a message. Message - a purpose to be conveyed.

Encoding - converting a message into symbols. Channel - the medium a message travels along. Decoding - retranslating a senders message.

Nonverbal Communication : communication transmitted without words.

Body language - gestures, facial configurations, and other body movements that convey meaning. Verbal intonation - an emphasis given to words or phrases that conveys meaning.

Barriers to Communication

Filtering - the deliberate manipulation of information to make it appear more favorable to the receiver. Information overload - occurs when information exceeds our processing capacity. Jargon - specialized terminology or technical language that members of a group use to communicate among

themselves.

Active listening - listening for full meaning without making premature judgments or interpretations. Formal communication - communication that takes place within prescribed organizational work arrangements. Informal communication - communication that is not defined by the organizations structural hierarchy. Direction of Communication

Downward communication - communication that flows downward from a manager to employees. Upward communication - communication that flows upward from employees to managers. Lateral communication - communication that takes place among any employees on the same organizational

level. Diagonal communication - communication that cuts across work areas and organizational levels.

Organizational Communication Networks

Communication Networks - the variety of patterns of vertical and horizontal flows of organizational communication.

Grapevine - the informal organizational communication network. Workplace Design and Communication

Open workplaces - workplaces with few physical barriers and enclosures. Ethical communication - communication that includes all relevant information, is true in every sense, and is

not deceptive in any way. Current Communication Issues

Managing Communication in an Internet World Legal and security issues Inappropriate use of company e-mail and instant messaging Loss of confidential and proprietary information due to inadvertent or deliberate dissemination or to hackers Lack of personal interaction Being connected is not the same as face-to-face contact Difficulties occur in achieving understanding and collaboration in virtual environments

Communication and Customer Service

Communicating Effectively with Customers Recognize the three components of the customer service delivery process: The customer The service organization The service provider Develop a strong service culture focused on the personalization of service to each customer. Listen and respond to the customer. Provide access to needed service information.

Chapter 16 Motivation Motivation - the process by which a persons efforts are energized, directed, and sustained toward attaining a goal. Early Theories of Motivation

Maslows Hierarchy of Needs Hierarchy of needs theory - Maslows theory that human needs physiological, safety, social, esteem, and self-actualization form a sort of hierarchy. Physiological needs - a persons needs for food, drink, shelter, sexual satisfaction, and other physical needs. Safety needs - a persons needs for security and protection from physical and emotional harm. Social needs - a persons needs for affection, belongingness, acceptance, and friendship. Esteem needs - a persons needs for internal factors (e.g., self-respect, autonomy, and achievement) and external factors (such as status, recognition, and attention). Self-actualization needs - a persons need to become what he or she is capable of becoming.

McGregors Theories X and Y Theory X - the assumption that employees dislike work, are lazy, avoid responsibility, and must be coerced to perform. Theory Y - the assumption that employees are creative, enjoy work, seek responsibility, and can exercise self-direction.

Herzbergs Two-Factor Theory

Two-factor theory (motivation-hygiene theory) - the motivation theory that claims that intrinsic factors are related to job satisfaction and motivation, whereas extrinsic factors are associated with job dissatisfaction. Hygiene factors - factors that eliminate job dissatisfaction, but dont motivate. Motivators - factors that increase job satisfaction and motivation.

McClellands Three Needs Theory

Three-needs theory - the motivation theory that sites three acquired (non-innate) needs (achievement, power, and affiliation) as major motives in work.

Need for achievement (nAch) - the drive to succeed and excel in relation to a set of standards. Need for power (nPow) - the need to make others behave in a way that they would not have behaved otherwise. Need for affiliation (nAff) - the desire for friendly and close interpersonal relationships.

Contemporary Theories of Motivation

Goal-setting theory - the proposition that specific goals increase performance and that difficult goals, when accepted, result in higher performance than do easy goals.

Self-efficacy - an individuals belief that he or she is capable of performing a task. Reinforcement theory - the theory that behavior is a function of its consequences. Reinforcers - consequences immediately following a behavior which increase the probability that the

behavior will be repeated. Designing Motivating Jobs

Job design - the way tasks are combined to form complete jobs. Job scope - the number of different tasks required in a job and the frequency with which those tasks are

repeated. Job enlargement - the horizontal expansion of a job that occurs as a result of increasing job scope. Job enrichment - the vertical expansion of a job that occurs as a result of additional planning and evaluation

of responsibilities. Job depth - the degree of control employees have over their work. Job characteristics model (JCM) - a framework for analyzing and designing jobs that identifies five primary

core job dimensions, their interrelationships, and their impact on outcomes. Five Core Job Dimensions

1. Skill variety - the degree to which a job requires a variety of activities so that an employee can use a number of different skills and talents.

2. Task identity - the degree to which a job requires completion of a whole and identifiable piece of work. 3. Task significance - the degree to which a job has a substantial impact on the lives or work of other people. 4. Autonomy - the degree to which a job provides substantial freedom, independence, and discretion to the

individual in scheduling work and determining the procedures to be used in carrying it out. 5. Feedback - the degree to which carrying out work activities required by a job results in the individuals

reception of direct and clear information about his or her performance effectiveness.

Redesigning Job Design Approaches

Relational perspective of work design - an approach to job design that focuses on how peoples tasks and jobs are increasingly based on social relationships.

Proactive perspective of work design - an approach to job design in which employees take the initiative to change how their work is performed.

High-involvement work practices - work practices designed to elicit greater input or involvement from workers.

Equity Theory

Equity theory - the theory that an employee compares his or her jobs input-outcome ratio with that of relevant others and then corrects any inequity.

Referents - the persons, systems, or selves against which individuals compare themselves to assess equity. Distributive justice - perceived fairness of the amount and allocation of rewards among individuals.

Expectancy theory - the theory that an individual tends to act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual.

Expectancy Relationships o Expectancy (effort-performance linkage)

The perceived probability that an individuals effort will result in a certain level of performance.

o Instrumentality The perception that a particular level of performance will result in attaining a

desired outcome (reward). o Valence

The attractiveness/importance of the performance reward (outcome) to the individual.

Current Issues in Motivation

Cross-Cultural Challenges

o Motivational programs are most applicable in cultures where individualism and achievement are cultural characteristics.

Uncertainty avoidance of some cultures inverts Maslows needs hierarchy. The need for achievement (nAch) is lacking in other cultures.

Collectivist cultures view rewards as entitlements to be distributed based on individual needs, not individual performance. Motivating Unique Groups of Workers

1. Motivating a Diverse Workforce o Motivating a diverse workforce through flexibility:

Men desire more autonomy than do women. Women desire learning opportunities, flexible work schedules, and good interpersonal

relations. o Compressed workweek

Longer daily hours, but fewer days o Flexible work hours (flextime)

Specific weekly hours with varying arrival, departure, lunch and break times around certain core hours during which all employees must be present

o Job Sharing Two or more people split a full-time job

o Telecommuting Employees work from home using computer links

2 Motivating Professionals Characteristics of professionals Strong and long-term commitment to their field of expertise Loyalty is to their profession, not to the employer Have the need to regularly update their knowledge Dont define their workweek as 8:00 am to 5:00 pm.

3 Motivating Contingent Workers Opportunity to become a permanent employee Opportunity for training Equity in compensation and benefits

4 Motivating Low-Skilled, Minimum-Wage Employees Employee recognition programs Provision of sincere praise Designing Appropriate Rewards Programs

Open-book management - a motivational approach in which an organizations financial statements (the books) are shared with all employees.

Employee recognition programs - programs based on personal attention and expression of interest, approval, and appreciation for a job well done.

Pay-for-performance programs - variable compensation plans that pay employees on the basis of some performance measure.

Chapter 17

Leadership

Objective 17.1 Define Leadership and Leader

17.1.1

Leader : Someone who can influence others and who has managerial authority.

Leadership : What leaders do; the process of influencing a group to achieve goals.

Objective 17.2 Compare and Contrasr early theories of leadership

1. Trait Theories (1920s-1930s) a. Research focused on identifying personal characteristics that differentiated leaders from non-leaders

was unsuccessful. b. Later research on the leadership process identified seven traits associated with successful leadership:

i. Drive, the desire to lead, honesty and integrity, self-confidence, intelligence, job-relevant knowledge, and extraversion

2. Behavioral Theories a. University of Iowa Studies (Kurt Lewin)

Identified three leadership styles: Autocratic style: centralized authority, low participation Democratic style: involvement, high participation, feedback Laissez faire style: hands-off management

Research findings: mixed results - No specific style was consistently better for producing better performance. - Employees were more satisfied under a democratic leader than under an

autocratic leader. b. Ohio State Studies

Identified two dimensions of leader behavior: - Initiating structure: the role of the leader in defining his or her role and the

roles of group members. - Consideration: the leaders mutual trust and respect for group members

ideas and feelings.

c. Mixed Result of Ohio State Studies High consideration/high structure leaders generally, but not always, achieved high scores on

group task performance and satisfaction. Evidence indicated that situational factors appeared to strongly influence leadership

effectiveness. d. University of Michigan Studies

Identified two dimensions of leader behavior: Employee oriented: emphasizing personal relationships Production oriented: emphasizing task accomplishment

Research findings: Leaders who are employee oriented are strongly associated with high group productivity and high job satisfaction.

e. Managerial Grid

Appraises leadership styles using two dimensions: Concern for people Concern for production

Places managerial styles in five categories: Impoverished management Task management Middle-of-the-road management

Country club management Team management

3. Contingency Theories of Leadership

a. The Fiedler Model Proposes that effective group performance depends upon the proper match between the leaders style of interacting with followers and the degree to which the situation allows the leader to control and influence.

Assumption: o A certain leadership style should be most effective in different types of situations. o Leaders do not readily change leadership styles.

Matching the leader to the situation or changing the situation to make it favorable to the leader is required.

Least-preferred co-worker (LPC) questionnaire o Determines leadership style by measuring responses to 18 pairs of contrasting

adjectives High score: a relationship-oriented leadership style Low score: a task-oriented leadership style

Situational factors in matching leader to the situation: Leader-member relations Task structure Position power

b. Hersey and Blanchards Situational Leadership Theory (SLT)

Argues that successful leadership is achieved by selecting the right leadership style which is contingent on the level of the followers readiness

Acceptance: leadership effectiveness depends on whether followers accept or reject a leader Readiness: the extent to which followers have the ability and willingness to accomplish a specific task

Leaders must relinquish control over and contact with followers as they become more competent.

Creates four specific leadership styles incorporating Fiedlers two leadership dimensions: Telling: high task-low relationship leadership Selling: high task-high relationship leadership Participating: low task-high relationship leadership Delegating: low task-low relationship leadership

Four stages of follower readiness: R1: followers are unable and unwilling R2: followers are unable but willing R3: followers are able but unwilling R4: followers are able and willing

c. Path Goal Model States that the leaders job is to assist his or her followers in attaining their goals and to

provide direction or support to ensure that their goals are compatible with those of the organization

Depending on the situation, leaders assume different leadership styles at different times: Directive leader Supportive leader

Participative leader Achievement oriented leader

4. Contemporary Views of Leadership

a. Transactional Leadership Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements.

b. Transformational Leadership Leaders who inspire followers to transcend their own self-interests for the good of the organization by clarifying role and task requirements.

c. Charismatic Leadership An enthusiastic, self-confident leader whose personality and actions influence people to

behave in certain ways. Characteristics of charismatic leaders:

Have a vision Are able to articulate the vision Are willing to take risks to achieve the vision Are sensitive to the environment and follower needs Exhibit behaviors that are out of the ordinary

d. Visionary Leadership A leader who creates and articulates a realistic, credible, and attractive vision of the future

that improves upon the present situation. Visionary leaders have the ability to:

Explain the vision to others Express the vision not just verbally but through behavior Extend or apply the vision to different leadership contexts

e. Team Leadership Team Leadership Characteristics:

Having patience to share information Being able to trust others and to give up authority Understanding when to intervene

Team Leaders Job Managing the teams external boundary Facilitating the team process

Includes coaching, facilitating, handling disciplinary problems, reviewing team and individual performance, training, and communication

17.5 Leadership Issues in The Twenty First Century

a. Managing Power Legitimate power

The power a leader has as a result of his or her position. Coercive power

The power a leader has to punish or control. Reward power

The power to give positive benefits or rewards. Expert power

The influence a leader can exert as a result of his or her expertise, skills, or knowledge. Referent power

The power of a leader that arises because of a persons desirable resources or admired personal traits.

b. Developing Trust

Credibility (of a Leader) The assessment of a leaders honesty, competence, and ability to inspire by his or her followers

Trust The belief of followers (and others) in the integrity, character, and ability of a leader

Dimensions of trust: integrity, competence, consistency, loyalty, and openness Is related to increases in job performance, organizational citizenship behaviors, job satisfaction, and

organization commitment

c. Empowering Employees

Increasing the decision-making discretion of workers such that teams can make key operating decisions in developing budgets, scheduling workloads, controlling inventories, and solving quality problems.

d. Leading Across Cultures

Follower characteristics

Experience, training, professional orientation, or the need for independence

Job characteristics

Routine, unambiguous, and satisfying jobs

Organization characteristics

Explicit formalized goals, rigid rules and procedures, or cohesive work groups

CHAPTER 18

Foundations Of Control

Objective 18.1 : Explain the nature and importance of control

Controlling: the process of monitoring, comparing, and correcting work performance. The Purpose of Control

To ensure that activities are completed in ways that lead to the accomplishment of organizational goals.

As the final link in management functions:

Planning Controls let managers know whether their goals and plans are on target and what future actions to take.

Empowering employees Control systems provide managers with information and feedback on employee performance.

Protecting the workplace Controls enhance physical security and help minimize workplace disruptions.

Objective 18.2 : Describe the three steps in the control process

Control process : a three-step process of measuring actual performance, comparing actual performance

against a standard, and taking managerial action to correct deviations or inadequate standards. The Process of Control

Measuring actual performance Comparing actual performance against a standard Taking action to correct deviations or inadequate standards

Sources of Information (How) Personal observation Statistical reports Oral reports Written reports

Control Criteria (What)

Employees

Satisfaction

Turnover

Absenteeism

Budgets

Costs

Output

Sales

Taking Managerial Action Immediate corrective action: corrective action that corrects problems at once in order to get performance back on track. Basic corrective action: corrective action that looks at how and why performance deviated before correcting the source of deviation.

Objective 18.3 : Explain how organizational performance is measured

Productivity : the amount of goods or services produced divided by the inputs needed to generate that output.

Organizational effectiveness : a measure of how appropriate organizational goals are and how well those goals are being met.

a. Types of Control: Feed forward control : control that takes place before a work activity is done.

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

Management by walking around : a term used to describe when a manager is out in the work area interacting directly with employees.

Feedback control : control that takes place after a work activity is done.

b. Balanced Scorecard Balanced scorecard : a performance measurement tool that examines more than just the financial perspective.

a. Measures a companys performance in four areas: i. Financial ii. Customer iii. Internal processes iv. People/innovation/growth assets

c. Information Controls Management information system (MIS) - a system used to provide management with needed information on a regular basis.

i. Data : an unorganized collection of raw, unanalyzed facts (e.g., an unsorted list of customer names).

ii. Information : data that has been analyzed and organized such that it has value and relevance to managers.

d. Benchmarking of Best Practices Benchmarking : the search for the best practices among competitors or non-competitors that lead to their superior performance. Benchmark : the standard of excellence to measure and compare against.

e. Customers Interactions Service profit chain : the service sequence from employees to customers to profit. Corporate governance : the system used to govern a corporation so that the interests of corporate owners are protected.

Describe tools used to measure organizational

performance Discuss contemporary issues in control