BNAD302 Exam 2
Group Problem-Solving Techniques Do's
Use active listening skills. Involve as many members as possible Seek out the reasons behind arguments and dig for the facts
VRIO:
Valuable, Rare, Costly to imitate, Organized to exploit these.
General Decision-Making Styles
Value Orientation. Tolerance for Ambiguity.
Organizational Culture
Values - what people think is important Beliefs - why things happen the way they do Norms - how people are expected to behave
How Workers Organize
When workers decide to form a union, they first must get other workers to sign an authorized card, which designates a certain union as the worker's bargaining agent.
Division of labor
Work specialization; having discrete parts of a task done by different people
Hybrid
referrals - tap into existing employees' social networks to fill open positions with outside applicants - and Boomerangs - former employees who return to the organization
Decision-Making Style:
reflects the combination of how an individual perceives and responds to information.
Value Orientation:
reflects the extent to which a person focuses on either task and technical concerns or on people and social concerns when making decisions.
Least threatening: adaptive change
reintroduction of a familiar practice
Performance Management
set of processes and managerial behaviors that involve defining, monitoring, measuring, evaluating, and providing consequences for performance expectations
Satisficing model
Because of constraints, managers don't make an exhaustive search for the best alternative. Instead, managers seek alternatives until they find one that is satisfactory, not optimal.
How We Learn about Culture
Behavioral Symbols Physical Symbols Verbal Symbols
Analytical (High TA; Task Concerns)
Considers more information and alternatives, tends to be careful and take longer to make decisions; tends to overanalyze and respond well to new or uncertain situations.
Sexual Harassment
Consists of unwanted sexual attention that creates an adverse work environment
Performance Appraisal
Consists of: assessing an employee's performance providing feedback
Nondisparagement Agreement
Contract that prohibits one party from criticizing the other.
What Can OD be used for?
Improving individual, team, and organizational performance: an OD expert or "executive coach" can help advise on how to improve relationships within the organization.
informal appraisals
Conducted on an unscheduled basis and consists of less rigorous indications of employee performance
Major Features of Organizations: 4 Proposed by Edgar Schein
Common Purpose Coordinated Effort Division of Labor Hierarchy of Authority
The Fair Labor Standards Act
1938 (FLSA) established minimum living standards for workers engaged in interstate commerce, including provision of a federal minimum wage and a maximum work week before overtime must be paid, along with banning child labor.
Step 2: Assess the Current Reality
4 Tools: SWOT Analysis VRIO Forecasting Benchmarking
The Strategic Management Process
1. Establish the mission vision and values statement. 2. Assess the current reality. 3. Formulate the grand strategy. 4. Implement the strategy. 5. Maintain strategic control.
3 Key Principles of Strategic Positioning
1. Strategy is the creation of a unique and valuable position. 2. Strategy requires trade-offs in competing 3. Strategy involves creating a "fit" among activities
Seven Implementation Principles of Evidence-Based Management
1. Treat your organization as an unfinished prototype. 2. Don't brag, just use facts. 3. See yourself and your organization as outsiders do. 4. Evidence-based management is not just for senior executives. 5. Like everything else, you still need to sell it. 6. If all else fails, slow the spread of bad practice. 7. The best diagnostic question: What happens when people fail?
Nine Common Decision-Making Biases
1.The Availability Bias - using only information more readily available. 2. The Representativeness Bias - faulty generalizing from a small sample or a single event 3. The confirmation Bias - seeking information to support your point of view 4. The Sunk-Cost Bias - money already spent seems to justify continuing 5. The Anchoring and Adjustment Bias - being influenced by an initial figure 6. The Overconfidence Bias - blind to our own business 7. The Hindsight Bias - The I-Knew-It-All-Along Effect 8. The Framing Bias - Shaping the way a problem is presented 9. The Escalation of Commitment Bias - feeling overly invested in a decision 10. The Categorical Thinking Bias - sorting information into buckets
The Social Security Act
1935 established the U.S retirement system
Grievance
A complaint by an employee that management has violated the terms of the labor-management agreement
Disadvantages of Group Decision Making
A few people dominant or intimidate Groupthink Satisficing Goal displacement
Organization structure
A formal system of task and reporting relationships that coordinates and motivates an organization's members so that they can work together to achieve the organization's goals.
Benchmarking
A process by which a company compares its performance with that of high-performing organizations.
Bullying
Abusive physical, psychological, verbal, or nonverbal behavior that is threatening, humiliating, or intimidating.
Affirmative Action
Active recruitment from groups traditionally discriminated against Elimination of prejudicial questions in interviews Establishment of minority hiring goals
Preventing Groupthink
Allow critical evaluation Allow other (fresh) perspectives Reflect before entering a group discussion
Hubris
An extreme and inflated sense of pride, certainty, and confidence
Background Information
Application forms Resumes Background Checks
Five Steps in the Learning Development Process
Assessment Objectives Selective Implementation Evaluation
Nonrational Decision Making
Assumes that decision making is nearly always uncertain and risky, making it difficult for managers to make optimal decisions
Talent Management:
Attitudes: workers singled out as "stars" experience increased job satisfaction, engagement, and commitment to the organization. Behaviors: employees identified as high-potential respond with greater effort, better job performance, and lower turnover. Cognitions: workers respond to their organizations' elevated perceptions with higher self-efficacy and increased feelings of fulfillment Geared toward enhancing and leveraging the human and social capital of specific individuals in the organization.
Types of AI
Automated business processes. Data analysis Engaging customers and employees
Group Problem-Solving Techniques Don'ts
Avoid horse trading and making an agreement simply to not rock the boat Don't try to achieve consensus by putting questions to a vote
3 Types of Selection Tools
Background Information interviews Employment Tests
More Group Problem-Solving Techniques
Brainstorming Devil's Advocacy The Dialectic Method Project Post-Mortems
formal appraisals
Conducted at specific times throughout the year and based on performance measures that have been established in advance
Groupthink
Cohesiveness isn't always good. When it results in groupthink, group or team members are friendly and tight-knit but unable to think "outside the box." The results of groupthink can include failure to consider new information and a loss of new ideas.
Four Types of Organizational Culture
Clan Adhocracy Market Hierarchy
Coordinated effort
Coordination of individual efforts into a group or organization-wide effort
Step 3: Formulate Corporate, Business, and Functional Strategies
Corporate Level Strategy: Growth Strategy: Involves expansion, as in sales revenue, market share, number of employees, or number of customers. Can involve following an "Innovation Strategy". Stability Strategy: Involves little or no significant change. Defensive Strategy: Involves reduction in the organization's efforts. Diversification Strategy Diversification: The strategy of moving into new lines of business.
Strategic Management Takes Place at 3 Levels
Corporate-Level Business-Level Functional-Level
Porter's 4 Competitive Strategies
Cost-Leadership Strategy: keep the costs, and hence prices, or a product or service below those of competitors and target a wide market. Cost-Focus Strategy: Keep the costs of a product below those of competitors and to target a narrow market. Differentiation Strategy: Offers products that are of unique and superior value compared to those of competitors but to target a wide market. Focused-Differentiation Strategy: Offers products that are unique and superior value compared to those of competitors and to target a narrow market.
Rational Decision Making Model
Explains how manager should make decisions Assumes managers will make logical decisions that will be optimum in furthering the organization's best interests. Also called the classical model of decision making
Bounded rationality
Developed by Herbert Simon. Suggests that the ability of decision makers to be rational is limited by numerous constraints. Complexity, time and money, cognitive capacity.
Decision-Making Styles
Directive (Low TA; Task Concerns) Analytical (High TA; Task Concerns) Conceptual (High TA; People Concerns) Behavioral (Low TA; People Concerns)
National Labor Relations Board
Enforces procedures whereby employees may vote for a union and collective bargaining
Execution Roadblocks
Execution doesn't always go smoothly because managers may face obstacles to strategic implementation. Overcoming roadblocks in the C-suite. Overcoming roadblocks down the hierarchy.
Market culture
Focused on the external environment Values stability and control; Profits over employee satisfaction Driven by competition and a strong desire to deliver results
Forecasting
Forecast: "a vision or projection of the future" Trend Analysis: "hypothetical extension of a past series of events into the future" (ex. Time-series forecasting) Contingency Planning: "creation of alternative hypothetical but equally likely future conditions." Also called scenario planning and analysis.
12 Ways to Try and Change Organizational Culture
Formal Statements: mission, vision, values Language, slogans, sayings, and acronyms Rites and rituals Stories, legends, and myths Leader reactions to crises Role modeling, training, and coaching Through physical design Rewards, titles, promotions, and bonuses Organizational goals and performance criteria Measurable and controllable activities Organizational structure Organizational systems and procedures
Advantages of Group Decision Making
Greater pool of knowledge Different perspectives Intellectual stimulation Better understanding of decision rationale Deeper commitment to the decision
High Performance Work Systems:
HPWS is an approach to SHRM that deploys bundles of internally consistent HR practices in order to improve employee ability, motivation, and opportunities across the entire organization.
Adhocracy culture
Has an external focus Risk-taking; Values flexibility Adaptable, creative, and quick to respond to changes in the marketplace
Clan culture
Has an internal (employee) focus Values flexibility rather than stability Encourages collaboration among employees
Hierarchy culture
Has an internal focus values stability and control over flexibility formulized, structured work environment
Ten Reasons Employees Resist Change
Individual's predisposition toward change Surprise and fear of the unknown Climate of mistrust Fear of failure Loss of status or job security Peer pressure Disruption of cultural traditions or group relationships Personality conflicts Lack of tact or poor timing Non-reinforcing reward system
What is Person-Organization Fit?
Individuals have preferences for certain cultural attributes (e.g., beliefs, values, behavior).
3 Recruiting approaches
Internal External Hybrid
The Strategic HRM Process
Internal Fit External Fit
Intuition Model
Intuition is making a choice without the use of conscious thought or logical inference.
Proactive (or planned) change
Involves making carefully thought-out changes in anticipation of possible or expected problems or opportunities
Types of Learning and Development
L&D for Facts L&D for Skills On-the job training Off-the job training
Three types of change
Least threatening: adaptive change. Somewhat threatening: Innovative change. Very threatening: radically innovative change
Three Levels of Organizational Culture
Level 1: Observable Artifacts: Physical Manifestations of Culture Level 2: Espoused Values: Explicitly Stated Values and Norms Level 3: Basic Assumptions: Core Values of the Organization
Techniques to Promote Cultural Change
Make clear the desirable/acceptable values, norms, behaviors Engage in intentional management actions Formal communication Face-to-face meetings with employees "Walk the Talk" Identify and deploy cultural artifacts (behavioral, physical, verbal) Review/introduce new training, socialization, mentoring programs Reward desirable employee behaviors, punish undesirable ones Replace executives/supervisors/managers (bring in new blood) Break up cliques: transfer the "old guard" employees Hire outsiders to implement/oversee changes (e.g. critics, activists)
Reactive Change
Making changes in response to problems or opportunities as they arise
Step 1: Mission, Vision, and Value Statements
Mission Statement: Expresses the purpose of the organization. What is our reason for being? Why are we here? Vision Statement: It is a clear sense of the future and the actions needed to get there. What do we want to become? Where do we want to go? Values Statement: What the company stands for: its core priorities, the values its employees embody, and what its products contribute to the world. What values do we want to emphasize?
Collective bargaining
Negotiations between management and employees about disputes over compensation, benefits, working conditions, and job security
Two-tier wage contracts
New employees are paid less or receive lesser benefits than veteran employees
The Third Core Process
Operations
Labor Unions
Organizations of employees formed to protect and advance their members' interests by bargaining with management over job-related issues.
Who Should Make Performance Appraisals?
Peers and subordinates? Customers and clients? Self-Appraisal? Managers? Your Performance
The First Core Process
People
Directive (Low TA; Task Concerns)
People are efficient, logical, practical, and systematic in their approach to solving problems. Action oriented, decisive, and like to focus on facts, BUT tends to be autocratic and focus on the short run.
Discrimination:
People are hired or promoted - or denied hiring or promotion - for reasons not relevant to the job.
Data Analytics
Perhaps the purest application of evidence-based management is the use of data analytics, which is the process of analyzing raw data sets in order to make conclusions about the information they contain.
Porter's 5 Competitive Forces
Porter contends that business-level strategies originate in five primary competitive forces in the firm's environment. threat of new entrants. bargaining power of suppliers. bargaining power of buyers. threat of substitute products or services. rivalry among competitors.
Business-Level Strategy
Porter's 5 Competitive Forces. Porter's 4 Competitive Strategies.
Mediation
Process in which a neutral third party, a mediator, listens to both sides in a dispute, makes suggestions, and encourages them to agree on a solution.
Arbitration
Process in which a neutral third party, an arbitrator, listens to both parties in a dispute and makes a decision that the parties have agreed will be binding.
3 Types of Diversification
Related Unrelated Vertical Integration
Symptoms of Groupthink
Sense of invulnerability Rationalization Dominant members Illusion of unanimity and peer pressure "The wisdom of crowds" - people censor themselves
Organization development (OD)
Set of techniques for implementing planned change to make people and organizations more effective.
Performance Management
Step 1: Define Performance Step 2: Monitor and Evaluate Performance Step 3: Review Performance Step 4: Provide Consequences
The 4 Steps in Rational Decision Making
Step 1: Identify the problem or opportunity - the decision is how to change from current to desirable Step 2: Think up alternative solutions - both the obvious and the creative Step 3: Evaluate alternatives and select a solution - is it ethical, feasible, and effective Step 4: Implement and evaluate the solution chosen - plan carefully; be sensitive to those affected
Step 5: Maintaining Strategic Control
Strategic Control: "Monitoring the execution of strategy and making adjustments, if necessary." Engage people. You need to actively engage people in clarifying what your group hopes to accomplish and how you will accomplish it. Keep it simple. Keep your planning simple, unless there's a good reason to make it more complex. Stay focused. Stay focused on the important things. Keep moving. Keep moving toward your vision of the future, adjusting your plans as you learn what works.
VRIO Framework
To be a useful resource require three things: It must be Valuable (e.g. there must be some Demand for it) It must be somewhat Rare (e.g. Scarcity) It must be Exploitable by the Organization (e.g. must be able to Appropriate the value from that resource)
The Second Core Process
Strategy
Step 4: Strategic Implementation
Strategy Implementation: "Putting strategic plans into effect." To implement strategy, higher-level corporate- and business-level strategies flow down to the functional strategy, similar to goal cascading. Functional Strategy: "a plan of action by each functional area of the organization to support higher-level strategies." Typical functional areas include marketing, finance, human resources, operation, information technology, and distribution. Once functional strategies are formulated... execution. Consists of using questioning, analysis, and follow-through in order to mesh strategy with reality, align people with goals, and achieve results promised.
Strategic Planning #3
Strategy involves creating a "fit" among activities (ex. Vanguard Guard; not like Continental Lite).
Strategic Positioning #1
Strategy is the creation of a unique and valuable position. It emerges from 3 sources: Few needs, many customers (ex. Corcs). Broad needs, few customers (ex. Buy Buy Baby). Broad needs, many customers (ex. Allegiant Airlines).
Strategic Positioning #2
Strategy requires trade-offs in competing. Choose both what to do, and what NOT to do (ex. Neutrogena)
SWOT Analysis:
Strengths, Weaknesses, Opportunities, and Threats.
Behavioral (Low TA; People Concerns)
Supportive, receptive to suggestions, show warmth; avoids conflict and is concerned with others. Prefer verbal to written information; opinions are openly exchanged Can lead to wishy-washy decision making; has trouble saying no
How Employees Learn Culture
Symbols: an object, an act, a quality, or event that conveys meaning to others. Stories: narrative based on true events repeated - and sometimes embellished upon - to emphasize a particular value Heroes: person whose accomplishments embody the values of the organization Rites and rituals: activities and ceremonies that celebrate important occasions and accomplishments Organizational socialization: the process by which people learn the values, norms, and required behaviors of an organization
Conceptual (High TA; People Concerns)
Takes a broad perspective to problem solving Likes to consider many options and future possibilities; relies on intuition, and adopts a long-term perspective Can foster indecisiveness
Three Core Processes of Business: People, Strategy, and Operations
The First Core Process - People. The Second Core Process - Strategy. The Third Core Process - Operations.
Base Pay
wage or salary pay
Hierarchy of authority
The chain of command; control mechanism for making sure the right people do the right things at the right time
Human capital
The economic or productive potential of employee knowledge, experience, and actions.
Social capital
The economic or productive potential of strong, trusting, and cooperative relationships.
Employment at Will
The governing principle that means anyone can be dismissed at any time for any reason at all, or for no reason.
Common Purpose:
The means for unifying members; gives everyone an understanding of the organization's reason for being
Organizational Culture
The set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various
Givebacks
The union agrees to give up previous wage or benefit gains in return for something else, something else, such as a no-layoff policy.
The Organization Chart
The vertical hierarchy of authority The horizontal specialization
Cost-of-living adjustment (COLA)
This is a clause during the period of the contract that ties future wage increases to increases in the cost of living.
Aligning Culture, Structure, and Human Resource (HR) Practices to Support Strategy
You can think of an organization's culture, structure, and HR practices as three strands in a single rope. These strands must be tightly woven together to drive successful strategic execution.
Change agent
a consultant with a background in behavioral sciences who can be a catalyst in helping organizations deal with old problems in new ways
Benefits
additional non monetary forms of compensation; e.g., Health insurance, dental insurance, life insurance, disability protection, retirement plans, holidays off, sick and vacation days, recreation options, health club memberships, family leave, discounts on company merchandise, counseling, credit unions, legal advice, and education reimbursement. are no small part of an organization's costs.
Talent Management Def.
an approach to SHRM that matches high-potential employees with an organization's most strategically valuable positions.
structured interview
asking each applicant the same question and comparing their responses to a standardized set of answers - situational - behavioral
External
attracting job applicants from the outside (ex. Social Media, online job postings, school partnerships.)
The vertical hierarchy of authority
who reports to whom
The horizontal specialization
who specializes in what work
Process innovation
change in the way a product is conceived, manufactured, or disseminated
Product innovation
changes in the appearance or performance of a product or the creation of a new one
The horizontal design:
eliminating functional barriers to solve problems
Related Diversification
expansion into businesses that are related to the company's existing portfolio of products or services.
Unrelated Diversification
expansion into businesses that are unrelated to the company's existing portfolio products or services.
Vertical Integration
expansion into businesses that provide the supplies it needs to make its products or that distribute and sell its products.
To help increase performance, managers should offer:
formal and informal appraisals
Compensation
has 3 parts - wages or salaries as base pay, incentives, and benefits
Designs that open boundaries between organizations:
hollow, modular, and virtual structures
Tolerance for Ambiguity:
indicated the extent to which a person has a high need for structure or control in his or her life.
unstructured interview
information is gathered about job candidates without the use of a fixed set of questions or a systematic scoring procedure. Involves asking probing questions to find out what the applicant is like
Somewhat threatening: Innovative change
introduction of a practice that is new to the organization
Very threatening: radically innovative change
involves introducing a practice that is new to the industry
Internal
making people already employed by the organization aware of job openings (ex. Internal job postings, informal nominations, and employee profiles)
Interviews
most common. unstructured and structured
Dismissal
moving out of the organization through layoffs, downsizing, and firings.
Transfer
moving sideways with similar responsibilities
Promotion
moving upward in fair ways
Incentives
performance-based pay, such as commissions, bonuses, profit-sharing plans, and stock options
Recruitment:
process of locating and attracting qualified applicants for jobs open in the organization.
Onboarding
programs that help employees to integrate and transition to new jobs familiarize new employees with corporate policies, procedures, cultures, and politics. clarify work-role expectations and responsibilities
Traditional designs:
simple, functional, divisional, and matrix structures
Employment Tests
standardized devices organizations use to measure specific skills, abilities, traits, and other tendencies. - ability - performance - personality - integrity -drug & alcohol - criminal
Big Data
stores of data so vast that conventional database management systems cannot handle them.
Strategic Human Resource Management:
the process of designing and implementing systems of policies and practices that align an organization's human capital with its strategic objectives
Big Data Analytics
the process of examining large amounts of data of a variety of types to uncover hidden patterns, unknown correlations, and other useful information.
Selection
the process of screening job applicants and choosing the best candidate for a position.
Legally Defensible
the selection device measures job-related criteria in a way that is free from bias
Discipline and demotion
the threat of moving downward