Ch. 7 - Designing Organizational Structures; Ch. 8 - Managing Human Resources and Labor Relations

building high-performance teams

-A great team must possess certain characteristics, so selecting the appropriate employees for the team is vital.Employees who are more willing to work together to accomplish a common goal should be selected, rather than employees who are more interested in their own personal achievement. Team members should also possess a variety of skills. Diverse skills strengthen the overall effectiveness of the team, so teams should consciously recruit members to fill gaps in the collective skill set. To be effective, teams must also have clearly defined goals. Vague or unclear goals will not provide the necessary direction or allow employees to measure their performance against expectations. -Next, high-performing teams need to practice good communication. Team members need to communicate messages and give appropriate feedback that seeks to correct any misunderstandings. Feedback should also be detached; that is, team members should be careful to critique ideas rather than criticize the person who suggests them. Nothing can degrade the effectiveness of a team like personal attacks. Lastly, great teams have great leaders. Skilled team leaders divide work so that tasks are not repeated, help members set and track goals, monitor their team's performance, communicate openly, and remain flexible to adapt to changing goals or management demands.

negotiating union contracts through collective bargaining

-A labor agreement, or union contract, is created through collective bargaining. Typically, both management and union negotiation teams are made up of a few people. One person on each side is the chief spokesperson.Bargaining begins with union and management negotiators setting a list of contract issues that will be discussed. Much of the bargaining over specific details takes place through face-to-face meetings and the exchange of written proposals. Demands, proposals, and counter proposals are exchanged during several rounds of bargaining. The resulting contract must be approved by top management and ratified by the union members. Once both sides approve, the contract is a legally binding agreement that typically covers such issues as union security, management rights, wages, benefits, and job security.

union organizing

-A nonunion employer becomes unionized through an organizing campaign. The campaign is started either from within, by unhappy employees, or from outside, by a union that has picked the employer for an organizing drive. Once workers and the union have made contact, a union organizer tries to convince all the workers to sign authorization cards. These cards prove the worker's interest in having the union represent them. In most cases, employers resist this card-signing campaign by speaking out against unions in letters,posters, and employee assemblies. However, it is illegal for employers to interfere directly with the card-signing campaign or to coerce employees into not joining the union. -Once the union gets signed authorization cards from at least 30 percent of the employees, it can ask National Labor Relations Board (NLRB) for a union certification election. This election, by secret ballot, determines whether the workers want to be represented by the union. The NLRB posts an election notice and defines the bargaining unit—employees who are eligible to vote and who will be represented by the particular union if it is certified. Supervisors and managers cannot vote. The union and the employer then engage in a pre-election campaign conducted through speeches, memos, and meetings. Both try to convince workers to vote in their favor. -The election itself is conducted by the NLRB. If a majority vote for the union, the NLRB certifies the union as the exclusive bargaining agent for all employees who had been designated as eligible voters. The employer then has to bargain with the union over wages, hours, and other terms of employment. -In some situations, after one year, if the union and employer don't reach an agreement, the workers petition for a decertification election, which is similar to the certification election but allows workers to vote out the union. Decertification elections are also held when workers become dissatisfied with a union that has represented them for a longer time. In recent years, the number of decertification elections has increased to several hundred per year.

union security

-A union wants all employees to be union members. This can be accomplished by negotiating a union security clause. The most common union security arrangement is the union shop, whereby nonunion workers can be hired by the firm, but then they must join the union, normally within 30 to 60 days. An agency shop does not require employees to join the union, but to remain employees, workers must pay the union a fee (known as the agency fee) to cover the union's expenses in representing them. The union must fairly represent all workers, including those in the bargaining unit who do not become members. -Under the Taft-Hartley Act of 1947, a state can make any and all forms of union security illegal by enacting aright-to-work law. In the 28 states that have these laws, employees can work at a unionized company without having to join the union. This arrangement is commonly known as an open shop. Workers don't have to join the union or pay dues or fees to the union.

traditional structures

-After a company divides the work it needs to do into specific jobs, managers then group the jobs together so that similar or associated tasks and activities can be coordinated. This grouping of people, tasks, and resources into organizational units is called departmentalization. It facilitates the planning, leading, and control processes. -An organization chart is a visual representation of the structured relationships among tasks and the people given the authority to do those tasks.

employee selection

-After a firm has attracted enough job applicants, employment specialists begin the selection process. Selection is the process of determining which people in the applicant pool possess the qualifications necessary to be successful on the job. -An applicant who can jump over each step, or hurdle, of the employee selection process will very likely receive a job offer; thus, this is known as the successive hurdles approach to applicant screening. Alternatively, an applicant can be rejected at any stepor hurdle. Selection steps or hurdles are described below: 1. Initial screening. During initial screening, an applicant completes an application form and/or submits a résumé, and has a brief interview of 30 minutes or less. The job application includes information about educational background, previous work experience, and job duties performed. 2. Employment testing. Following initial screening, the applicant may be asked to take one or more tests, such as the Wonderlic Personnel Tests. Wonderlic offers a suite of pre-employment tests for each phase of the hiring process. Used individually or together, the tests can assess cognitive ability (ability to learn, adapt, and solve problems), motivation potential (attitude, behavior performance, and productivity), and knowledge and skills (math, verbal, data entry, software proficiency). 3. Selection interview. The tool most widely used in making hiring decisions is the selection interview, an in-depth discussion of an applicant's work experience, skills and abilities, education, and career interests.For managerial and professional positions, an applicant may be interviewed by several persons, including the line manager for the position to be filled. This interview is designed to determine a person's communication skills and motivation. During the interview, the applicant may be presented with realistic job situations, such as dealing with a disgruntled customer, and asked to describe how he or she would handle the problem. 4. Background and reference check. If applicants pass the selection interview, most firms examine their background and check their references. In recent years, an increasing number of employers are carefully researching applicants' backgrounds, particularly their legal history, reasons for leaving previous jobs, and even creditworthiness. 5. Physical exams and drug testing. A firm may require an applicant to have a medical checkup to ensure he or she is physically able to perform job tasks. Drug testing is common in the transportation and healthcare industries. companies use drug testing for reasons of workplace safety, productivity, and employee health. 6. Decision to hire. If an applicant progresses satisfactorily through all the selection steps (or jumps all of the selection hurdles), a decision to hire the person is made; however, the job offer may be contingent on passing a physical exam and/or drug test. The decision to hire is nearly always made by the manager of the new employee. -An important aspect of employee recruitment and selection involves treating job applicants as valued customers; in fact, some applicants may be customers of the firm.

performance planning and evaluation

-Along with employee orientation and training, new employees learn about performance expectations through performance planning and evaluation. Managers provide employees with expectations about the job. These are communicated as job objectives, schedules, deadlines, and product and/or service quality requirements.As an employee performs job tasks, the supervisor periodically evaluates the employee's efforts. A performance appraisal is a comparison of actual performance with expected performance to determine an employee's contributions to the organization and to make decisions about training, compensation, promotion, and other job changes. -The performance planning and appraisal process: 1. The manager establishes performance standards. 2. The employee works to meet the standards and expectations. 3. The employee's supervisor evaluates the employee's work in terms of quality and quantity of output and various characteristics such as job knowledge, initiative, relationships with others, and attendance and punctuality. 4. Following the performance evaluation, reward (pay raise) and job change (promotion) decisions can be made. If work is unsatisfactory, the employee may be put on a performance improvement plan, which outlines the behaviors or performance that must be improved, the milestones and time periods to improve performance, and what will occur if performance is not improved. 5. Rewards are positive feedback and provide reinforcement, or encouragement, for the employee to continue improving their performance. -It was once common practice for performance approvals to be conducted on an annual basis, but most companies have moved away from that standard. Instead, managers are encouraged to provide employees with continuous real-time feedback so that skill development and job performance can be improved more rapidly. -Information for performance appraisals can be assembled using rating scales, supervisor logs of employee job incidents, and reports of sales and production statistics. Regardless of the source, performance information should be accurate and a record of the employee's job behavior and efforts.

Factors Influencing the Choice between Mechanistic and Organic Structures

-Although few organizations are purely mechanistic or purely organic, most organizations tend more toward one type or the other. The decision to create a more mechanistic or a more organic structural design is based on factors such as the firm's overall strategy, the size of the organization, and the stability of its external environment, among others. -A company's organizational structure should enable it to achieve its goals, and because setting corporate goals is part of a firm's overall strategy-making process, it follows that a company's structure depends on its strategy. That alignment can be challenging for struggling companies trying to accomplish multiple goals. For example, a company with an innovation strategy will need the flexibility and fluid movement of information that an organic organization provides. But a company using a cost-control strategy will require the efficiency and tight control of a mechanistic organization. Often, struggling companies try to simultaneously increase innovation and rein in costs, which can be organizational challenges for managers. -Size is another factor that affects how mechanistic or organic a company's organizational structure is. Much research has been conducted that shows a company's size has a significant impact on its organizational structure. Smaller companies tend to follow the more organic model, in part because they can. It's much easier to be successful with decentralized decision-making, for example, if you have only 50 employees. A company with that few employees is also more likely, by virtue of its size, to have a lesser degree of employee specialization. That's because, when there are fewer people to do the work, those people tend to know more about the entire process. As a company grows, it becomes more mechanistic, as systems are put in place to manage the greater number of employees. Procedures, rules, and regulations replace flexibility, innovation,and independence. That isn't always the case, however. -Lastly, the business in which a company operates has a significant impact on its organizational structure. Incomplex, dynamic, and unstable environments, companies need to organize for flexibility and agility. That is,their organizational structures need to respond to rapid and unexpected changes in the business environment. For companies operating in stable environments, however, the demands for flexibility and agility are not so great. The environment is predictable. In a simple, stable environment, therefore, companies benefit from the efficiencies created by a mechanistic organizational structure.

matrix and committee structures

-Although traditional forms of departmentalization still represent how many companies organize their work,newer, more flexible organizational structures are in use at many firms. Matrix and committee types of organizations are helping companies better leverage the diverse skills of their employees.

employee diversity and competitive advantage

-American society and its workforce are becoming increasingly more diverse in terms of racial and ethnic status, age, educational background, work experience, and gender. A company with a demographic employee profile that looks like its customers may be in a position to gain a competitive advantage, which is a set of unique features of a company and its product or service that are perceived by the target market as superior to those of the competition. Competitive advantage is the factor that causes customers to patronize a firm and not the competition. Many things can be a source of competitive advantage. Many firms are successful because of employee diversity, which can produce more effective problem-solving, a stronger reputation for hiring women and minorities, greater employee diversity, quicker adaptation to change, andmore robust product solutions because a diverse team can generate more options for improvement. -In order for an organization to use employee diversity for competitive advantage, top management must be fully committed to hiring and developing women and minority individuals.

outsourcing

-Another organizational trend that continues to influence today's managers is outsourcing. For decades,companies have outsourced various functions. For example, payroll functions such as recording hours, managing benefits and wage rates, and issuing paychecks have been handled for years by third-party providers. Today, however, outsourcing includes a much wider array of business functions: customer service,production, engineering, information technology, sales and marketing, and more. -Historically, companies have outsourced for two main reasons: cost reduction and labor needs. Often, to satisfy both requirements, companies outsource work to firms in foreign countries. In 2017, outsourcing remains a key component of many businesses' operations but is not strictly limited to low-level jobs. Some of the insights highlighted in Deloitte's recent Global Outsourcing Survey bear this out. According to survey respondents from 280 global organizations, outsourcing continues to be successful because it is adapting to changing business environments. According to the survey, outsourcing continues to grow across mature functions such as HR and IT, but it has successfully moved to nontraditional business functions such as facilities management, purchasing, and real estate. In addition, some businesses view outsourcing as a way of infusing their operations with innovation and using it to maintain a competitive advantage—not just as a way o cut costs. As companies increasingly view outsourcing as more than a cost-cutting strategy, they will be expecting more of their vendors in terms of supplying innovation and other benefits. -Another form of outsourcing has become prevalent over the last several years, in part as the result of the slow economic recovery from the global recession of 2007-2009. As many U.S. businesses hesitated to hire full-time workers even as they began to experience gradual growth, some companies began to offer contract work to freelancers, who were not considered full-time employees eligible for company benefits. Known as the gig economy, this work approach has advantages and disadvantages. Some gig workers like the independence of being self-employed, while others acknowledge that they are taking on multiple small projects because they can't find full-time work as company employees. Another group of individuals work as full-time employees but may sign up for gigs such as driving for Uber or Lyft to supplement their income. Recent estimates suggest that the gig economy may impact more than one-third of the U.S. workforce over the next few years. -Despite the challenges, outsourcing programs can be effective. To be successful in outsourcing efforts, managers must do the following: *Identify a specific business problem.• Consider all possible solutions. *Decide whether outsourcing the work is the appropriate answer to the problem. *Develop a strategic outsourcing partnership with vendors and a solid framework that promotes seamless collaboration and communication. *Engage with outsourcing partners on a regular basis to instill trust between the two entities. *Remain flexible when it comes to working with outsourcing providers in terms of accommodating requests or adjusting needs when necessary in an effort to build a long-term strategic partnership beneficial to both parties.

structuring for global mergers

-Beyond designing a new organizational structure, one of the most difficult challenges when merging two large companies is uniting the cultures and creating a single business. -Failure to effectively merge cultures can have serious effects on organizational efficiency. -As more and more global mergers take place, sometimes between the most unlikely suitors, companies must ensure that the integration plan includes strategies for dealing with cultural differences, establishing a logical leadership structure, implementing a strong two-way communications channel at all levels of the organization, and redefining the "new" organization's vision, mission, values, and culture.

employee compensation and benefits

-Compensation, which includes both pay and benefits, is closely connected to performance appraisals. Employees who perform better tend to get bigger pay raises. Several factors affect an employee's pay: 1. Pay structure and internal influences. Wages, salaries, and benefits are based on skills, experience, and the level of the job. The most important high-level positions, such as president, chief information officer, and chief financial officer, are compensated at the highest rates. Likewise, different jobs of equal importance to the firm are compensated at similar rates. As the level of management responsibility increases, so does pay. 2. Pay level and external influences. In deciding how much to pay workers, the firm must also be concerned with the salaries paid by competitors. If competitors are paying higher wages, a firm may lose its best employees. HR professionals regularly evaluate salaries by geography, job position, and competitor and market wages. Wage and salary surveys conducted by the U.S. Chamber of Commerce and the U.S.Department of Labor can also be useful. There are also several websites such as Glassdoor that post salaries for jobs by company. -An employer can decide to pay at, above, or below the going rate. Most firms try to offer competitive wages and salaries within a geographic area or an industry. If a company pays below-market wages, it may not be able to hire skilled people. The level of a firm's compensation is determined by the firm's financial condition (or profitability), efficiency, and employee productivity, as well as the going rates paid by competitors.

span of control

-Each firm must decide how many managers are needed at each level of the management hierarchy to effectively supervise the work performed within organizational units. A manager's span of control (sometimes called span of management) is the number of employees the manager directly supervises. It can be as narrow as two or three employees or as wide as 50 or more. In general, the larger the span of control, the more efficient the organization. both narrow and wide spans of control have benefits and drawbacks. -If hundreds of employees perform the same job, one supervisor may be able to manage a very large number of employees. Such might be the case at a clothing plant, where hundreds of sewing machine operators work from identical patterns. But if employees perform complex and dissimilar tasks, a manager can effectively supervise only a much smaller number. -ADVANTAGES OF NARROW SPAN OF CONTROL: *This approach allows a high degree of control. *Fewer subordinates may mean the manager is more familiar with each individual. *Close supervision can provide immediate feedback. -DISADVANTAGES OF NARROW SPAN OF CONTROL: *More levels of management mean that it is more expensive. *Decision-making is slower due to vertical layers. *Top management are isolated. *This approach discourages employee autonomy. -ADVANTAGES OF WIDE SPAN OF CONTROL: *Fewer levels of management means increased efficiency and reduced costs. *Increased subordinate autonomy leads to quicker decision-making. *This approach allows for greater organizational flexibility. *This approach creates higher levels of job satisfaction due to employee empowerment. -DISADVANTAGES OF WIDE SPAN OF CONTROL: *This approach allows for less control. *Managers may lack familiarity with their subordinates due to the large number. *Managers can be spread so thin that they can't provide necessary leadership or support. *There may be a lack of coordination or synchronization.

off-the-job training

-Even with the advantages of on-the-job training, many firms recognize that it is often necessary to train employees away from the workplace. With off-the-job training, employees learn the job away from the job. There are numerous popular methods of off-the-job training. It frequently takes place in a classroom, wherecases, role-play exercises, films, videos, lectures, and computer demonstrations are used to develop workplace skills. -Web-based technology is increasingly being used along with more traditional off-the-job training methods. E-learning and e-training involve online computer presentation of information for learning new job tasks. programmed instruction is an online, self-paced, and highly structured training method that presents trainees with concepts and problems using a modular format. Software provided can make sure that employees receive, undergo, and complete, as well as sign off on, various training modules.9Web-based training can also be done using a simulation, for example, a scaled-down version of a manufacturing process or even a mock cockpit of a jet airplane. A simulator allows for more direct transfer of learning to the job.

legal environment of human resources and labor relations

-Federal laws help ensure that job applicants and employees are treated fairly and not discriminated against.Hiring, training, and job placement must be unbiased. Promotion and compensation decisions must be based on performance. These laws help all Americans who have talent, training, and the desire to get ahead. -Several laws govern wages, pensions, and unemployment compensation. For instance, the Fair Labor Standards Act sets the federal minimum wage, which is periodically raised by Congress. Many minimum-wage jobs are found in service firms, such as fast-food chains and retail stores. The Pension Reform Act protects the retirement income of employees and retirees. Federal tax laws also affect compensation, including employee profit-sharing and stock purchase plans. When John F. Kennedy signed the Equal Pay Act into law in 1963, the goal was to stop the practice of paying women lower wages for the same job based on their gender. At the time, women with full-time jobs earned between 59 and 64 cents for every dollar their male counterparts earned in the same jobs. Although this law has been in place for several decades, progress has been slow. n 2016, the wage gap changed slightly, with women making 80.5 percent of what men earn. -Employers must also be aware of changes to laws concerning employee safety, health, and privacy. The Occupational Safety and Health Act (OSH Act) requires employers to provide a workplace free of health and safety hazards. Drug and AIDS testing are also governed by federal laws. -Another employee law that continues to affect the workplace is the Americans with Disabilities Act. To be considered disabled, a person must have a physical or mental impairment that greatly limits one or more major life activities. More than 40 million Americans, 12.6 percent of the population, were disabled in 2015, according to the U.S. Census Bureau.18 Employers may not discriminate against disabled persons. They must make "reasonable accommodations" so that qualified employees can perform the job, unless doing so would cause "undue hardship" for the business. Altering work schedules, modifying equipment so a wheelchair-bound person can use it, and making buildings accessible by ramps and elevators are considered reasonable. -The Family and Medical Leave Act went into effect in 1993. The law guarantees continuation of paid health benefits, plus a return to the same or equivalent job, and applies to employers with 50 or more employees. It requires these employers to provide unpaid leave of up to 12 weeks during any 12-month period to workers who have been employed for at least a year and worked at least 1,250 hours during the past year. The reasons for the leave include the birth or adoption of a child; the serious illness of a child, spouse, or parent; or a serious illness that prevents the worker from doing the job. -According to the Bureau of Labor Statistics, only 11 percent of all private industry workers have access to paid family leave. Low-wage earners fare even worse. Only 5 percent of low-wage earners get any paid maternity leave, and nearly half will not take time off because they cannot afford to go without income. The United States continues to be one of only four countries in the world (along with Liberia, Suriname, and Papua New Guinea) that do not guarantee paid parental leave. -The Wagner and Taft-Hartley Acts govern the relationship between an employer and union. Employees have the right to unionize and bargain collectively with the company. The employer must deal with the union fairly,bargain in good faith, and not discriminate against an employee who belongs to the union. The union must also represent all employees covered by a labor agreement fairly and deal with the employer in good faith. -Several federal agencies oversee employment, safety, compensation, and related areas. The Occupational Safety and Health Administration (OSHA) sets workplace safety and health standards, provides safety training, and inspects places of work (assembly plants, construction sites, and warehouse facilities, for example) to determine employer compliance with safety regulations. -The Wage and Hour division of the Department of Labor enforces the federal minimum-wage law and overtime provisions of the Fair Labor Standards Act. Employers covered by this law must pay certain employees a premium rate of pay (or time and one-half) for all hours worked beyond 40 in one week. -The Equal Employment Opportunity Commission (EEOC) was created by the 1964 Civil Rights Act. It is one of the most influential agencies responsible for enforcing employment laws. The EEOC has three basic functions:processing discrimination complaints, issuing written regulations, and gathering and disseminating information. An employment discrimination complaint can be filed by an individual or a group of employees who work for a company. The group may comprise a protected class, such as women, African Americans, or Hispanic Americans. The protected group may pursue a class-action complaint that may eventually become a lawsuit. As a measure to prevent employment discrimination, many employers set up affirmative action programs to expand job opportunities for women and minorities -Even with affirmative action and other company efforts to follow the law, each year the EEOC receives tens of thousands of complaints from current or former employees. The monetary benefits that the EEOC wins for employees has grown substantially during the past 10 years. Large monetary settlements often occur when the EEOC files a class-action suit against an employer. -The NLRB was established to enforce the Wagner Act. Its five members are appointed by the president; the agency's main office is in Washington, DC, and regional and field offices are scattered throughout the United States. NLRB field agents investigate charges of employer and union wrongdoing (or unfair labor practices)and supervise elections held to decide union representation. Judges conduct hearings to determine whether employers and unions have violated the law. -The Federal Mediation and Conciliation Service helps unions and employers negotiate labor agreements.Agency specialists, who serve as impartial third parties between the union and company, use two processes:conciliation and mediation, both of which require expert communication and persuasion. In conciliation, the specialist assists management and the union with focusing on the issues in dispute and acts as a go-between,or communication channel through which the union and employer send messages to and share information with each other. The specialist takes a stronger role in mediation by suggesting compromises to the disputing organizations.

HR Planning and forecasting

-Forecasting an organization's human resource needs, known as an HR demand forecast, is an essential aspect of HR planning. This process involves two forecasts: (1) determining the number of people needed by some future time (in one year, for example) and (2) estimating the number of people currently employed by the organization who will be available to fill various jobs at some future time; this is an internal supply forecast. -The performance of managers is reviewed to identify people who can fill vacancies and be promoted, a process known as succession planning. -If there is a temporary shortage of sales professionals, at the holiday shopping season, for example, a company can hire an experienced contractor or interim executive as a temporary or contingent worker, someone who wants to work but not on a permanent, continuous basis.

human resource management

-Human resource (HR) management is the process of hiring, developing, motivating, and evaluating employees to achieve organizational goals. The goals and strategies of the firm's business model form the basis for making human resource management decisions. HR practices and systems comprise the firm's human resource decision support system that is intended to make employees a key element for gaining competitive advantage. To this end, the HR management process contains the following sequenced activities: *Job analysis and design *Human resource planning and forecasting *Employee recruitment *Employee selection *Training and development *Performance planning and evaluation *Compensation and benefits -The human resource management process encourages the development of high-performance employees. The process is sequential because employees can't be trained and paid until selected and placed in jobs, which follows recruitment, which is preceded by human resource planning and job analysis and design. Good HR practices used along this sequence foster performance improvement, knowledge and skill development, and loyal employees who desire to remain with the organization.

Human resource management and labor relations

-Human resource management and labor relations involve acquisition, development, use, and maintenance of a human resource mix (people and positions) to achieve strategic organizational goals and objectives. Successful human resource management is based on a company's ability to attract and hire the best employees, equip them with the knowledge and skills they need to excel, compensate them fairly, and motivate them to reach their full potential and perform at high levels. Today's business environment presents numerous challenges to effectively managing employees: *Technology continues to advance, which places great importance on knowledge workers, especially when demand outstrips the supply of high-talent individuals. *Global business operations involve rapid data transfer and necessitate accelerated decision-making by executive and technical employees. *The workforce is increasingly more diversified and multicultural, which places increased emphasis on communication and cultural understanding. *Work, life, and family priorities are more difficult to balance as dual-worker families populate the labor force. *Employment and labor laws continue to greatly influence employee recruitment and hiring,compensation decisions, and employee retention and turnover in both union and nonunion organizations. -Each day, human resource experts and front-line supervisors deal with these challenges while sharing responsibility for attracting and retaining skilled, motivated employees. Whether faced with a large or small human resources problem, supervisors need some understanding of difficult employee-relations issues,especially if there are legal implications.

managing grievances and conflicts

-In a unionized work environment, employees follow a step-by-step process for handling grievances or disputes between management and labor. Conflicts over contracts, however, are far more challenging to resolve and may result in the union or employer imposing economic pressure, as described in this section.

committee structure

-In committee structure, authority and responsibility are held by a group rather than an individual.Committees are typically part of a larger line-and-staff organization. Often the committee's role is only advisory, but in some situations the committee has the power to make and implement decisions. Committees can make the coordination of tasks in the organization much easier. -Committees bring diverse viewpoints to a problem and expand the range of possible solutions, but there are some drawbacks. Committees can be slow to reach a decision and are sometimes dominated by a single individual. It is also more difficult to hold any one individual accountable for a decision made by a group.Committee meetings can sometimes go on for long periods of time with seemingly little being accomplished.

matrix structure

-MATRIX: The matrix structure (also called the project management approach) is sometimes used in conjunction with the traditional line-and-staff structure in an organization. Essentially, this structure combines two different forms of departmentalization, functional and product, that have complementary strengths and weaknesses.The matrix structure brings together people from different functional areas of the organization (such as manufacturing, finance, and marketing) to work on a special project. Each employee has two direct supervisors: the line manager from her or his specific functional area and the project manager. Because of the dual chain of command, the matrix structure presents some unique challenges for both managers and subordinates. *ADVANTAGES: Advantages of the matrix structure include: **Teamwork. By pooling the skills and abilities of various specialists, the company can increase creativity and innovation and tackle more complex tasks. **Efficient use of resources. Project managers use only the specialized staff they need to get the job done,instead of building large groups of underused personnel. **Flexibility. The project structure is flexible and can adapt quickly to changes in the environment; the group can be disbanded quickly when it is no longer needed. **Ability to balance conflicting objectives. The customer wants a quality product and predictable costs. The organization wants high profits and the development of technical capability for the future. These competing goals serve as a focal point for directing activities and overcoming conflict. The marketing representative can represent the customer, the finance representative can advocate high profits, and the engineers can push for technical capabilities. **Higher performance. Employees working on special project teams may experience increased feelings of ownership, commitment, and motivation. **Opportunities for personal and professional development. The project structure gives individuals the opportunity to develop and strengthen technical and interpersonal skills. *DISADVANTAGES **Power struggles. Functional and product managers may have different goals and management styles. **Confusion among team members. Reporting relationships and job responsibilities may be unclear. **Lack of cohesiveness. Team members from different functional areas may have difficulty communicating effectively and working together as a team. -Although project-based matrix organizations can improve a company's flexibility and teamwork, some companies are trying to unravel complex matrix structures that create limited accountability and complicate day-to-day operations. Some CEOs and other top managers suggest that matrix structures make it easier to blame others when things don't go as planned.

managerial hierarchy

-Managerial hierarchy (also called the management pyramid) is defined by the levels of management within an organization. Generally, the management structure has three levels: top, middle, and supervisory management. In a managerial hierarchy, each organizational unit is controlled and supervised by a manager in a higher unit. The person with the most formal authority is at the top of the hierarchy. The higher a manager, the more power he or she has. Thus, the amount of power decreases as you move down the management pyramid. At the same time, the number of employees increases as you move down the hierarchy. -Not all companies today are using this traditional configuration. The philosophy of self-management, in which professionals initiate communication and coordination of their activities with colleagues, customers, suppliers, and others, and take personal responsibility for helping the company achieve its corporate goals -An organization with a well-defined hierarchy has a clear chain of command, which is the line of authority that extends from one level of the organization to the next, from top to bottom, and makes clear who reports to whom. The chain of command is shown in the organization chart and can be traced from the CEO all the way down to the employees producing goods and services. Under the unity of command principle, everyone reports to and gets instructions from only one boss. Unity of command guarantees that everyone will have a direct supervisor and will not be taking orders from a number of different supervisors. Unity of command and chain of command give everyone in the organization clear directions and help coordinate people doing different jobs. -Matrix organizations automatically violate the unity of command principle because employees report to more than one boss, if only for the duration of a project. -Individuals who are part of the chain of command have authority over other persons in the organization. Authority is legitimate power, granted by the organization and acknowledged by employees, that allows an individual to request action and expect compliance. Exercising authority means making decisions and seeing that they are carried out. Most managers delegate, or assign, some degree of authority and responsibility to others below them in the chain of command. The delegation of authority makes the employees accountable to their supervisor. Accountability means responsibility for outcomes. Typically, authority and responsibility move downward through the organization as managers assign activities to, and share decision-making with,their subordinates. Accountability moves upward in the organization as managers in each successively higher level are held accountable for the actions of their subordinates.

wage and benefits

-Much bargaining effort focuses on wage adjustments and changes in benefits. Once agreed to, they remain in effect for the length of the contract. Hourly rates of pay can also increase under some agreements when the cost of living increases above a certain level each year, say 4 percent. No cost-of-living adjustment is made when annual living cost increases are under 4 percent, which has been the case for the early years of the twenty-first century. -In addition to requests for wage increases, unions usually want better benefits. In some industries, such as steel and auto manufacturing, benefits are 40 percent of the total cost of compensation. Benefits may include higher wages for overtime work, holiday work, and less desirable shifts; insurance programs (life, health and hospitalization, dental care); payment for certain nonwork time (rest periods, vacations, holiday, sick time); pensions; and income-maintenance plans. Supplementary unemployment benefits (income-maintenance) found in the auto industry are provided by the employer and are in addition to state unemployment compensation given to laid-off workers. The unemployment compensation from the state and supplementary unemployment pay from the employer together maintain as much as 80 percent of an employee's normal pay.

on-the-job training

-New-employee training is essential and usually begins with orientation, which entails getting the new employee ready to perform on the job. Formal orientation (often a half-day classroom program) provides information about the company history, company values and expectations, policies, and the customers the company serves, as well as an overview of products and services. More important, however, is the specific job orientation by the new employee's supervisor concerning work rules, equipment, and performance expectations. This second briefing tends to be more informal and may last for several days or even weeks. Beyond employee orientation, job training takes place at the job site or workstation and is directly related to the job. This training involves specific job instruction, coaching (guidance given to new employees by experienced ones), special project assignments, or job rotation. Job rotation is the reassignment of workers to several different jobs over time. -Two other forms of on-the-job training are apprenticeship and mentoring. An apprenticeship usually combines specific on-the-job instruction with classroom training. It may last as long as four years and can be found in the skilled trades of carpentry, plumbing, and electrical work. Mentoring involves a senior manager or other experienced employee providing job- and career-related information to a mentee. Inexpensive and providing instantaneous feedback, mentoring is becoming increasingly popular with many firms. Whereas mentoring is typically conducted through ongoing face-to-face interactions between mentor and mentee, technology now allows for a long-distance mentoring relationship. Dow Chemical uses e-mail and video conferencing to facilitate long-distance mentoring between persons who are working in different countries. For a mentee whose second language is English, writing e-mail messages in English helps the individual become fluent in English, which is a requirement of all Dow Chemical employees regardless of location and country of origin.

authority - establishing organizational relationships

-Once companies choose a method of departmentalization, they must then establish the relationships within that structure. In other words, the company must decide how many layers of management it needs and who will report to whom. The company must also decide how much control to invest in each of its managers andwhere in the organization decisions will be made and implemented.

the virtual corporation

-One of the biggest challenges for companies today is adapting to the technological changes that are affecting all industries. Organizations are struggling to find new organizational structures that will help them transform information technology into a competitive advantage. One alternative that is becoming increasingly prevalent is the virtual corporation, which is a network of independent companies (suppliers, customers, even competitors) linked by information technology to share skills, costs, and access to one another's markets. This network structure allows companies to come together quickly to exploit rapidly changing opportunities. The key attributes of a virtual corporation are: *Technology. Information technology helps geographically distant companies form alliances and work together. *Opportunism. Alliances are less permanent, less formal, and more opportunistic than in traditional partnerships. *Excellence. Each partner brings its core competencies to the alliance, so it is possible to create an organization with higher quality in every functional area and increase competitive advantage. *Trust. The network structure makes companies more reliant on each other and forces them to strengthen relationships with partners. *No borders. This structure expands the traditional boundaries of an organization. -In the concept's purest form, each company that links up with others to create a virtual corporation is strippedto its essence. Ideally, the virtual corporation has neither a central office nor an organization chart, no hierarchy, and no vertical integration. It contributes to an alliance only its core competencies, or key capabilities. It mixes and matches what it does best with the core competencies of other companies and entrepreneurs. For example, a manufacturer would only manufacture, while relying on a product design firm to decide what to make and a marketing company to sell the end result. -Although firms that are purely virtual organizations are still relatively scarce, many companies are embracing several characteristics of the virtual structure.

using teams to enhance motivation and performance

-One of the most apparent trends in business today is the use of teams to accomplish organizational goals. Using a team-based structure can increase individual and group motivation and performance.

more service workers joining labor unions

-Organized labor has faced tumultuous times during the last several decades due to declining union membership, loss of factory jobs, dwindling political clout, and the shifting of jobs outside the United States.With union membership now down to a little more than 10 percent of the U.S. workforce, some wonder if labor unions, who organize as a united front against poor working conditions, still have a place in the country. -Many believe that the future of labor lies primarily in the success of recruitment efforts and in enrolling the massive numbers of employees who are in fast-growing, low-wage service jobs.

reengineering organizational structure

-Periodically, all businesses must reevaluate the way they do business. This includes assessing the effectiveness of the organizational structure. To meet the formidable challenges of the future, companies are increasingly turning to reengineering—the complete redesign of business structures and processes in order to improve operations. An even simpler definition of reengineering is "starting over." The purpose of reengineering is to identify and abandon the outdated rules and fundamental assumptions that guide current business operations. Every company has many formal and informal rules, based on assumptions about technology, people, and organizational goals, that no longer hold. Thus, the goal of reengineering is to redesign business processes to achieve improvements in cost control, product quality, customer service, and speed. The reengineering process should result in a more efficient and effective organizational structure that is better suited to the current (and future) competitive climate of the industry.

recruitment branding

-Recruitment branding involves presenting an accurate and positive image of the firm to those being recruited. May include a realistic job preview, which informs job candidates about organizational realities of the job and the firm so they can more accurately evaluate jobs and firm expectations concerning work assignments, performance standards, promotional opportunities, company culture, and many other characteristics of the job.

organizational culture and hiring for fit

-Regardless of general business and economic conditions, many firms are expanding operations and hiring additional employees. For many growing firms, corporate culture can be a key aspect of developing employees into a competitive advantage for the firm. Corporate culture refers to the core values and beliefs that support the mission and business model of the firm and guide employee behavior. -In addition to cultural fit, firms are increasingly hiring for technical knowledge and skills fit to the job.

laws impacting human resource management

-Social Security Act (1935); purpose: Provides for retirement income and old-age health care; agency of enforcement: Social Security Administration -Wagner Act (1935); purpose: Gives workers the right to unionize and prohibits employer unfair labor practices; agency of enforcement: National Labor Relations Board -Fair Labor Standards Act (1938); purpose: Sets minimum wage, restricts child labor, sets overtime pay; agency of enforcement: Wage and Hour Division, Department of Labor -Taft-Hartley Act (1947); purpose: Obligates the union to bargain in good faith and prohibits union unfair labor practices; agency of enforcement: Federal Mediation and Conciliation Service -Equal Pay Act (1963); purpose: Eliminates pay differentials based on gender; agency of enforcement: Equal Employment Opportunity Commission -Civil Rights Act (1964); Title VII; purpose: Prohibits employment discrimination based on race, color, religion, gender, or national origin; agency of enforcement: Equal Employment Opportunity Commission -Age Discrimination Act (1967); purpose: Prohibits age discrimination against those over 40 years of age; agency of enforcement: Equal Employment Opportunity Commission -Occupational Safety and Health Act (1970); purpose: Protects worker health and safety, provides for hazard-free workplace; agency of enforcement: Occupational Safety and Health Administration -Vietnam Veterans' Readjustment Act (1974); purpose: Requires affirmative employment of Vietnam War veterans; agency of enforcement: Veterans Employment Service, Department of Labor -Employee Retirement Income Security Act (1974) - also called Pension Reform Act; purpose: Establishes minimum requirements for private pension plans; agency of enforcement: Internal Revenue Service, Department of Labor, and Pension Benefit Guaranty Corporation -Pregnancy Discrimination Act (1978); purpose: Treats pregnancy as a disability,prevents employment discrimination based on pregnancy; agency of enforcement: Equal Employment Opportunity Commission -Immigration Reform and Control Act (1986); purpose: Verifies employment eligibility,prevents employment of illegal aliens; agency of enforcement: Employment Verification Systems, Immigration and Naturalization Service -Americans with Disabilities Act (1990); purpose: Prohibits employment discrimination based on mental or physical disabilities; agency of enforcement: Equal Employment Opportunity Commission

trends in human resource management and labor relations

-Some of today's most important trends in human resource management are using employee diversity as a competitive advantage, improving efficiency through outsourcing and technology, and hiring employees who fit the organizational culture. Although overall labor union enrollment continues to decline, a possible surge in membership in service unions is anticipated.

mechanistic versus organic structures

-Structural design generally follows one of the two basic models: mechanistic or organic. A mechanistic organization is characterized by a relatively high degree of job specialization, rigid departmentalization, many layers of management (particularly middle management), narrow spans of control, centralized decision-making, and a long chain of command. This combination of elements results in what is called a tall organizational structure. The U.S. Army and the United Nations are typical mechanistic organizations. -In contrast, an organic organization is characterized by a relatively low degree of job specialization, loose departmentalization, few levels of management, wide spans of control, decentralized decision-making, and a short chain of command. This combination of elements results in what is called a flat organizational structure.Colleges and universities tend to have flat organizational structures, with only two or three levels of administration between the faculty and the president.

understanding group behavior

-Teams are a specific type of organizational group. Every organization contains groups, social units of two or more people who share the same goals and cooperate to achieve those goals. Understanding some fundamental concepts related to group behavior and group processes provides a good foundation for understanding concepts about work teams. Groups can be formal or informal in nature. Formal groups are designated and sanctioned by the organization; their behavior is directed toward accomplishing organizational goals. Informal groups are based on social relationships and are not determined or sanctioned by the organization. -Formal organizational groups, like the sales department at Apple, must operate within the larger Apple organizational system. To some degree, elements of the larger Apple system, such as organizational strategy,company policies and procedures, available resources, and the highly motivated employee corporate culture,determine the behavior of smaller groups, such as the sales department, within the company. Other factors that affect the behavior of organizational groups are individual member characteristics (e.g., ability, training,personality), the roles and norms of group members, and the size and cohesiveness of the group. Norms are the implicit behavioral guidelines of the group, or the standards for acceptable and non acceptable behavior. -Group cohesiveness refers to the degree to which group members want to stay in the group and tend to resist outside influences (such as a change in company policies). When group performance norms are high,group cohesiveness will have a positive impact on productivity. Cohesiveness tends to increase when the sizeof the group is small, individual and group goals are similar, the group has high status in the organization,rewards are group-based rather than individual-based, and the group competes with other groups within the organization. Work group cohesiveness can benefit the organization in several ways, including increased productivity, enhanced worker self-image because of group success, increased company loyalty, reduced employee turnover, and reduced absenteeism. On the other hand, cohesiveness can also lead to restricted output, resistance to change, and conflict with other work groups in the organization. -The opportunity to turn the decision-making process over to a group with diverse skills and abilities is one of the arguments for using work groups (and teams) in organizational settings. For group decision-making to be most effective, however, both managers and group members must understand its strengths and weaknesses

virtual teams

-Technology is also enabling corporations to create virtual work teams. Geography is no longer a limitation when employees are considered for a work team. Virtual teams mean reduced travel time and costs, reduced relocation expenses, and utilization of specialized talent regardless of an employee's location. -When managers need to staff a project, all they need to do is make a list of required skills and a general list of employees who possess those skills. When the pool of employees is known, the manager simply chooses the best mix of people and creates the virtual team. Special challenges of virtual teams include keeping team members focused, motivated, and communicating positively despite their locations. If feasible, at least one face-to-face meeting during the early stages of team formation will help with these potential problems.

the labor relations process

-Tens of thousands of American firms are unionized, and millions of U.S. workers belong to unions. Historically,the mining, manufacturing, construction, and transportation industries have been significantly unionized, but in recent years, service-based firms, including health care organizations, have been unionized. -A labor union, such as the International Brotherhood of Teamsters, is an organization that represents workers in dealing with management over disputes involving wages, hours, and working conditions. The labor relations process that produces a union-management relationship consists of three phases: union organizing, negotiating a labor agreement, and administering the agreement. In phase one, a group of employees within a firm may form a union on their own, or an established union (United Auto Workers, for example) may targetan employer and organize many of the firm's workers into a local labor union. The second phase constitutes collective bargaining, which is the process of negotiating a labor agreement that provides for compensation and working arrangements mutually acceptable to the union and to management. Finally, the third phase of the labor relations process involves the daily administering of the labor agreement. This is done primarily through handling worker grievances and other workforce management problems that require interaction between managers and labor union officials.

the modern labor movement

-The basic structure of the modern labor movement consists of three parts: local unions, national and international unions, and union federations. -A local union is a branch or unit of a national union that represents workers at a specific plant or over a specific geographic area. A local union (in conformance with its national union rules) determines the number of local union officers, procedures for electing officers, the schedule of local meetings, financial arrangements with the national organization, and the local's role in negotiating labor agreements. -The three main functions of the local union are collective bargaining, worker relations and membership services, and community and political activities. Collective bargaining takes place every three or four years. Local union officers and shop stewards in the plant oversee labor relations on a day-to-day basis. A shop steward is an elected union official who represents union members to management when workers have complaints. For most union members, his or her primary contact with the union is through union officials at the local level. -A national union can range in size from a few thousand members (Screen Actors Guild) to more than a million members (Teamsters). A national union may have a few to as many as several hundred local unions. The number of national unions has steadily declined since the early twentieth century. Much of this decline has resulted from union mergers. -For 50 years, one union federation (the American Federation of Labor-Congress of Industrial Organization, or AFL-CIO) dominated the American labor movement. A federation is a collection of unions banded together to further organizing, public relations, political, and other mutually-agreed-upon purposes of the member unions. In the summer of 2005, several unions (Teamsters, Service Employees International Union, Laborers' International Union, United Farm Workers, Carpenters and Joiners, Unite Here, and the United Food and Commercial Workers Union) split from the AFL-CIO and formed a new federation named the Change to Win Coalition. The new federation and its member unions represent more than 5.5 million union members. Change to Win Coalition member unions left the AFL-CIO over leadership disagreements and ineffective organizing strategies of the AFL-CIO; one of its primary goals is to strengthen union-organizing drives and reverse the decline in union membership

types of teams

-The evolution of the team concept in organizations can be seen in three basic types of work teams: problem-solving, self-managed, and cross-functional. -Problem-solving teams are typically made up of employees from the same department or area of expertise and from the same level of the organizational hierarchy. They meet on a regular basis to share information and discuss ways to improve processes and procedures in specific functional areas. Problem-solving teams generate ideas and alternatives and may recommend a specific course of action, but they typically do not make final decisions, allocate resources, or implement change. -Many organizations that experienced success using problem-solving teams were willing to expand the team concept to allow team members greater responsibility in making decisions, implementing solutions, and monitoring outcomes. These highly autonomous groups are called self-managed work teams. They manage themselves without any formal supervision, taking responsibility for setting goals, planning and scheduling work activities, selecting team members, and evaluating team performance. -Today, approximately 80 percent of Fortune 1000 companies use some sort of self-managed teams. -holacracy: a system wherein traditional organizational structure and bosses are eliminated. -An adaptation of the team concept is called a cross-functional team. These teams are made up of employees from about the same hierarchical level but different functional areas of the organization. Many task forces,organizational committees, and project teams are cross-functional. Often the team members work together only until they solve a given problem or complete a specific project. Cross-functional teams allow people with various levels and areas of expertise to pool their resources, develop new ideas, solve problems, and coordinate complex projects. Both problem-solving teams and self-managed teams may also be cross-functional teams.

informal communication channels

-The informal channels of communication used by the informal organization are often referred to as the grapevine or the rumor mill. Managers need to pay attention to the grapevines in their organization, because their employees increasingly put a great deal of stock in the information that travels along it, especially in this era of social media. A recent survey found that many business leaders have their work cut out for them in the speeches and presentations they give employees. Survey participants were asked if they would believe a message delivered in a speech by a company leader or one that they heard over the grapevine. Forty-seven percent of those responding said they would put more credibility in the grapevine. Perhaps even more interesting is how accurate employees perceive their company grapevine to be: 57 percent gave it favorable ratings. -With this in mind, managers need to learn to use the existing informal organization as a tool that can potentially benefit the formal organization. An excellent way of putting the informal organization to work for the good of the company is to bring informal leaders into the decision-making process. That way, at least the people who use and nurture the grapevine will have more accurate information to send it.

functions of the informal organization

-The informal organization has several important functions. *First, it provides a source of friendships and social contact for organization members. *Second, the interpersonal relationships and informal groups help employees feel better-informed about and connected with what is going on in their firm, thus giving them some sense of control over their work environment. *Third, the informal organization can provide status and recognition that the formal organization cannot or will not provide employees. *Fourth, the network of relationships can aid the socialization of new employees by informally passing along rules, responsibilities,basic objectives, and job expectations. *Finally, the organizational grapevine helps employees to be more aware of what is happening in their workplace by transmitting information quickly and conveying it to places that the formal system does not reach.

online recruitment and job search

-The internet, social media, and specialized software have completely changed the employee recruitment process. Dozens of companies such as Monster.com, Indeed, StartWire, and Glassdoor enable applicants to search for job openings, post their résumés, and apply for jobs that companies have posted. Most companies provide links to their company website and to the career page on their site so applicants can learn about the company culture, listen to or read testimonials from employees about what it is like to work for the company,and search for additional openings that may interest them. -Large firms may receive thousands of online applications per month. To review and evaluate thousands of online résumés and job applications, firms depend on software to scan and track applicant materials using keywords to match skills or other requirements for a particular job. Social media has also changed how companies search for applicants and verify applicant information.

building organizational structures

-The key functions that managers perform include planning, organizing, leading, and controlling. -Organizing involves coordinating and allocating a firm's resources so that the firm can carry out its plans and achieve its goals. This organizing, or structuring, process is accomplished by: *Determining work activities and dividing up tasks (division of labor) *Grouping jobs and employees (departmentalization) *Assigning authority and responsibilities (delegation) -The result of the organizing process is a formal structure within an organization. An organization is the order and design of relationships within a company or firm. It consists of two or more people working together with a common objective and clarity of purpose. Formal organizations also have well-defined lines of authority, channels for information flow, and means of control. Human, material, financial, and information resources are deliberately connected to form the business organization. Some connections are long-lasting, such as the links among people in the finance or marketing department. Others can be changed at almost any time—for example, when a committee is formed to study a problem. -Every organization has some kind of underlying structure. Typically, organizations base their frameworks on traditional, contemporary, or team-based approaches. Traditional structures are more rigid and group employees by function, products, processes, customers, or regions. Contemporary and team-based structures are more flexible and assemble employees to respond quickly to dynamic business environments. Regardless of the structural framework a company chooses to implement, all managers must first consider what kind of work needs to be done within the firm.

line-and-staff organization

-The line organization is designed with direct, clear lines of authority and communication flowing from the top managers downward. Managers have direct control over all activities, including administrative duties. An organization chart for this type of structure would show that all positions in the firm are directly connected via an imaginary line extending from the highest position in the organization to the lowest (where production of goods and services takes place). This structure, with its simple design and broad managerial control, is often well-suited to small, entrepreneurial firms. -As an organization grows and becomes more complex, the line organization can be enhanced by adding staff positions to the design. Staff positions provide specialized advisory and support services to line managers in the line-and-staff organization In daily operations, individuals in line positions are directly involved in the processes used to create goods and services. Individuals in staff positions provide the administrative and support services that line employees need to achieve the firm's goals. Line positions in organizations are typically in areas such as production, marketing, and finance. Staff positions are found in areas such as legal counseling, managerial consulting, public relations, and human resource management.

degree of centralization

-The optimal span of control is determined by the following five factors: 1. Nature of the task. The more complex the task, the narrower the span of control. 2. Location of the workers. The more locations, the narrower the span of control. 3. Ability of the manager to delegate responsibility. The greater the ability to delegate, the wider the span of control. 4. Amount of interaction and feedback between the workers and the manager. The more feedback and interaction required, the narrower the span of control. 5. Level of skill and motivation of the workers. The higher the skill level and motivation, the wider the span of control. -The final component in building an effective organizational structure is deciding at what level in the organization decisions should be made. Centralization is the degree to which formal authority is concentrated in one area or level of the organization. In a highly centralized structure, top management makes most of the key decisions in the organization, with very little input from lower-level employees.Centralization lets top managers develop a broad view of operations and exercise tight financial controls. It can also help to reduce costs by eliminating redundancy in the organization. But centralization may also mean that lower-level personnel don't get a chance to develop their decision-making and leadership skills and that the organization is less able to respond quickly to customer demands. -Decentralization is the process of pushing decision-making authority down the organizational hierarchy, giving lower-level personnel more responsibility and power to make and implement decisions. Benefits of decentralization can include quicker decision-making, increased levels of innovation and creativity, greater organizational flexibility, faster development of lower-level managers, and increased levels of job satisfaction and employee commitment. But decentralization can also be risky. If lower-level personnel don't have the necessary skills and training to perform effectively, they may make costly mistakes. Additionally, decentralization may increase the likelihood of inefficient lines of communication, competing objectives, and duplication of effort. -Several factors must be considered when deciding how much decision-making authority to delegate throughout the organization. These factors include the size of the organization, the speed of change in its environment, managers' willingness to give up authority, employees' willingness to accept more authority,and the organization's geographic dispersion. -Decentralization is usually desirable when the following conditions are met: *The organization is very large *The firm is in a dynamic environment where quick, local decisions must be made, as in many high-tech industries. *Managers are willing to share power with their subordinates. *Employees are willing and able to take more responsibility. *The company is spread out geographically -As organizations grow and change, they continually reevaluate their structure to determine whether it is helping the company to achieve its goals.

division of labor

-The process of dividing work into separate jobs and assigning tasks to workers is called division of labor. -The degree to which the tasks are subdivided into smaller jobs is called specialization. Employees who work at highly specialized jobs, such as assembly-line workers, perform a limited number and variety of tasks. Employees who become specialists atone task, or a small number of tasks, develop greater skill in doing that particular job. This can lead to greater efficiency and consistency in production and other work activities. However, a high degree of specialization can also result in employees who are disinterested or bored due to the lack of variety and challenge.

outsourcing HR and technology

-The role of the HR professional has changed noticeably over the past 20 years. One significant change has been the use of technology in handling relatively routine HR tasks, such as payroll processing, initial screening of applicants, and benefits enrollments. -HR outsourcing is done when another firm can perform a task better and more efficiently, thus saving costs.Sometimes HR activities are outsourced because HR requirements are extraordinary and too overwhelming to execute in-house in a timely fashion. Frequently, HR activities are outsourced simply because a provider has greater expertise.

grievance handling and arbitration

-The union's main way of policing the contract is the grievance procedure. A grievance is a formal complaint by an employee or the union that management has violated some part of the contract. Under a typical contract,the employee starts by presenting the grievance to the supervisor, either in person or in writing. An example grievance is a situation in which an employee is disciplined with a one-day suspension (and loss of pay) for being late for work several times in one month. -If the problem isn't solved, the grievance is put in writing. The employee, one or more union officials, the supervisor, and perhaps the plant manager then discuss the grievance. If the matter still can't be resolved,another meeting takes place with higher-level representatives of both parties present. If top management andthe local union president can't resolve the grievance, it goes to arbitration. -Arbitration is the process of settling a labor-management dispute by having a third party—a single arbitrator or a panel—make a decision. The decision is final and binding on the union and employer. The arbitrator reviews the grievance at a hearing and then makes the decision, which is presented in a document called the award. In the one-day suspension mentioned above, the arbitrator might rule that the discipline was improperly made because the employee's attendance record for the month was not accurately maintained by the firm.

types of compensation or pay

-There are two basic types of compensation: direct and indirect. -Direct pay is the wage or salary received by the employee; -indirect pay consists of various employee benefits and services. -Employees are usually paid directly on the basis of the amount of time they work, the amount they produce, the type of work performed, or some combination of skill, time, and output. An hourly rate of pay or a monthly salary is considered base pay, or an amount of pay received by the employee regardless of output level. In many jobs, such as sales and manufacturing, an employee can earn additional pay as a result of a commission or an incentive pay arrangement. The accelerated commission schedule for a salesperson shown below indicates that as sales increase the incentive becomes increasingly more attractive and rewarding; therefore, pay can function as a powerful motivator. In this example, a salesperson receives a base monthly salary of $1,000, then earns 3 percent on the first $50,000 of product sold, 4 percent on the next $30,000, and 5 percent on any sales beyond $80,000. -Two other incentive pay arrangements are bonuses and profit-sharing. Employees may be paid bonuses for reaching certain monthly or annual performance goals or achieving a specific cost-saving objective. In this instance, employees are rewarded based on achieving certain goals. -In a profit-sharing plan, employees may receive some portion of the firm's profit. Employee profit shares are usually based on annual company financial performance and therefore are paid once a year. With either abonus or a profit share, an important incentive pay consideration is whether the bonus or profit share is the same for all employees or whether it is differentiated by level in the organization, base pay, or some other criterion. -Indirect pay includes pensions, health insurance, vacation time, and many others. Some forms of indirect payare required by law: unemployment compensation, worker's compensation, and Social Security, which are allpaid in part by employers. Unemployment compensation provides former employees with money for a certain period while they are unemployed. To be eligible, the employee must have worked a minimum number of weeks, be without a job, and be willing to accept a suitable position offered by the state Unemployment Compensation Commission. Some state laws permit payments to strikers. Worker's compensation pays employees for lost work time caused by work-related injuries and may also cover rehabilitation after a serious injury. Social Security is mainly a government pension plan, but it also provides disability and survivor benefits and benefits for people undergoing kidney dialysis and transplants. Medicare (health care for seniors) and Medicaid (health care for the poor) are also part of Social Security. -Many employers also offer benefits not required by law. Among these are paid time off (vacations, holidays,sick days, even pay for jury duty), health insurance (including dental and vision), supplemental benefits(disability, life, pet insurance, legal benefits), 401K contributions, pensions and retirement savings accounts,and stock purchase options. -Some firms with numerous benefits allow employees to mix and match benefit items or select items based on individual needs. A younger employee with a family may desire to purchase medical, disability, and life insurance, whereas an older employee may want to put more benefit dollars into a retirement savings plan.Pay and benefits are obviously important elements of human resource management and are frequently studied as aspects of employee job satisfaction. Pay can be perceived as very satisfactory, or it can be a point of job dissatisfaction. In a study of job satisfaction conducted by SAP, direct compensation was the most important element of job satisfaction by employees from various companies.11 As the cost of health insurance and other benefits has risen sharply over the past few years, benefits have become increasingly important to workers.

employee training and development

-To ensure that both new and experienced employees have the knowledge and skills to perform their jobs successfully, organizations invest in training and development activities. Training and development involves learning situations in which the employee acquires additional knowledge or skills to increase job performance. Training objectives specify performance improvements, reductions in errors, job knowledge to be gained, and/or other positive organizational results. Training is done either on the job or off the job.

trends in organizational structure

-To improve organizational performance and achieve long-term objectives, some organizations seek to reengineer their business processes or adopt new technologies that open up a variety of organizational design options, such as virtual corporations and virtual teams. Other trends that have strong footholds in today's organizations include outsourcing and managing global businesses.

HR planning and job analysis and design

-Two important, and somewhat parallel, aspects of the human resource management process are determining employee needs of the firm and the jobs to be filled. -Human resource planning means having the right number of people, with the right training, in the right jobs, to meet its sales goals for the new product. Once the need for sales representatives is determined, human resource specialists assess the skills of the firm's existing employees to see whether new people must be hired or current people can be trained. -Human resource planners must know what skills different jobs require. Information about a specific job typically begins with a job analysis, which is a study of the tasks required to do a job well. This information is used to specify the essential skills, knowledge, and abilities required for the job. -Also, a key HR responsibility is that jobs are examined to make any changes in job duty and task responsibilities. The tasks and responsibilities of a job are listed in a job description. The skills, knowledge, and abilities a person must have to fill a job are spelled out in a job specification. These two documents help human resource planners find the right people for specific jobs.

tactics for pressuring a contract settlement

-Virtually all labor agreements specify peaceful resolution of conflicts, usually through arbitration. However,when a contract expires and a new agreement has not been reached, the union is free to strike or engage in other efforts to exert economic pressure on the employer. A strike occurs when employees refuse to work. A selective strike strategy is a strategy of conducting a strike at a critical plant that supplies parts to other plants. Likewise, the employer can put pressure on the union through a lockout or by hiring strike replacements if the union has called a strike.

job security and seniority

-Wage adjustments, cost-of-living increases, supplementary unemployment pay, and certain other benefits give employees under union contracts some financial security. But most financial security is directly related to job security—the assurance, to some degree, that workers will keep their jobs. Of course, job security depends primarily on the continued success and financial well-being of the company. -Seniority, the length of an employee's continuous service with a firm, is discussed in about 90 percent of all labor contracts. Seniority is a factor in job security; usually, unions want the workers with the most seniority to have the most job security.

work groups versus work teams

-We have already noted that teams are a special type of organizational group, but we also need to differentiate between work groups and work teams. Work groups share resources and coordinate efforts to help members better perform their individual duties and responsibilities. The performance of the group can be evaluated by adding up the contributions of the individual group members. Work teams require not only coordination but also collaboration, the pooling of knowledge, skills, abilities, and resources in a collective effort to attain a common goal. A work team creates synergy, causing the performance of the team as a whole to be greater than the sum of team members' individual contributions. Simply assigning employees to groups and labeling them a team does not guarantee a positive outcome. Managers and team members must be committed to creating, developing, and maintaining high-performance work teams.

management rights

-When a company becomes unionized, management loses some of its decision-making abilities. But management still has certain rights that can be negotiated in collective bargaining. One way to resist union involvement in management matters is to put a management rights clause in the labor agreement. Most union contracts have one. A typical clause gives the employer all rights to manage the business except as specified in the contract. For instance, if the contract does not specify the criteria for promotions, with a management rights clause, managers will have the right to use any criteria they wish. Another way to preserve management rights is to list areas that are not subject to collective bargaining. This list might secure management's right to schedule work hours; hire and fire workers; set production standards; determine the number of supervisors in each department; and promote, demote, and transfer workers.

employee recruitment

-When a firm creates a new position or an existing one becomes vacant, the firm starts looking for people with qualifications that meet the requirements of the job. Two sources of job applicants are the internal and external labor markets. The internal labor market consists of employees currently employed by the firm; the external labor market is the pool of potential applicants outside the firm. *internal labor market: Internal recruitment can be greatly facilitated by using a human resource information system that contains an employee database with information about each employee's previous work experience, skills, education and certifications, job and career preferences, performance, and attendance. Promotions and job transfers are the most common results of internal recruiting. Most firms, large and small, promote from within and manage the upward mobility of their employees. *external labor market: The external labor market consists of prospects to fill positions that cannot be filled from within the organization. Recruitment is the process of attracting qualified people to form an applicant pool. Numerous methods are used to attract applicants, including print, radio, web, and television advertising. Hospitality and entertainment firms frequently use job fairs to attract applicants. A job fair, or corporate open house, is usually a one- or two-day event at which applicants are briefed about job opportunities, given tours, and encouraged to apply for jobs. For firms needing accountants, engineers, sales managers, and others for professional and scientific positions, college recruiting is very common. These firms schedule job fairs and on-campus interviews with graduating seniors.

benefits stressed by unions in organizing campaigns and common arguments against unions

-almost always stressed by unions: *grievance procedures *job security *improved benefits *higher pay -often stressed by unions: *more influence in decision-making *better working conditions *lobbying opportunities -seldom stressed by unions: *higher-quality products *technical training *more job satisfaction *increased production -employer arguments against unionization: *An employee can always come directly to management with a problem; a third party (theunion) isn't necessary. *As a union member, you will pay monthly union dues of $15 to $40. *Merit-based decisions (promotions) are better than seniority-based decisions. *Pay and benefits are very similar to the leading firms in the industry. *We meet all health and safety standards of the Federal Occupational Safety and Health Administration. *Performance and productivity are more important than union representation in determining pay raises.

departmentalization

-five basic types of departmentalization are commonly used in organizations: 1. Functional departmentalization, which is based on the primary functions performed within an organizational unit (marketing, finance, production, sales, and so on). *ex: president at top, then below legal, human resources, manufacturing, engineering, marketing, finance 2. Product departmentalization, which is based on the goods or services produced or sold by the organizational unit (such as outpatient/emergency services, pediatrics, cardiology, and orthopedics). *administrator and CEO at top, then below head of outpatient/emergency treatment, head of pediatrics, head of cardiology, head of orthopedics, head of obstetrics/gynecology 3. Process departmentalization, which is based on the production process used by the organizational unit (such as lumber cutting and treatment, furniture finishing, and shipping). *ex: plant superintendent at top, then below lumber cutting and treatment, furniture assembly, furniture finishing, shipping 4. Customer departmentalization, which is based on the primary type of customer served by the organizational unit (such as wholesale or retail purchasers). *ex: vice president, marketing at top, then below marketing manager, railroad customers; marketing manager, aircraft customers; marketing manager, automotive customers; marketing manager, military customers 5. Geographic departmentalization, which is based on the geographic segmentation of organizational units(such as U.S. and Canadian marketing, European marketing, and Latin American marketing). *ex: vice president, marketing at top, and below director, U.S. and Canadian marketing; Director, European marketing; Director, Latin American marketing -People are assigned to a particular organizational unit because they perform similar or related tasks, or because they are jointly responsible for a product, client, or market. Decisions about how to departmentalize affect the way management assigns authority, distributes resources, rewards performance, and sets up lines of communication. Many large organizations use several types of departmentalization.

the informal organization

-many important relationships within an organization do not show up on an organization chart. Nevertheless, these relationships can affect the decisions and performance of employees at all levels of the organization. -The network of connections and channels of communication based on the informal relationships of individuals inside the organization is known as the informal organization. Informal relationships can be between people at the same hierarchical level or between people at different levels and in different departments. Some connections are work-related, such as those formed among people who carpool or ride the same train to work. Others are based on non work commonalities such as belonging to the same church or health club or having children who attend the same school.

organizational structures

-organizational structures need to be designed so that the organization can quickly respond to new competitive threats and changing customer needs. Future success for companies will depend on their ability to be flexible and respond to the needs of customers.

typical grievance procedure: employee with grievance

-step 1: oral presentation; first line supervisor, employee and union steward -step 2: grievance in writing; plant manager, personnel manager, first-line supervisor, employee, grievance committee, business agent, chief steward -step 3: higher-level grievance meeting; president, vice president of labor relations, plant manager, employee, international representative, local president, business agent, chief steward -step 4: arbitration

human resource management process

-strategies, goals and market position->job analysis and design/HR planning and forecasting->employee recruitment->employee selection->training and development->performance planning and evaluation->compensation and benefits->HR outcomes->retention/turnover

mechanistic versus organic structure

-structural characteristic: job specialization is high in mechanistic and low in organic structure -structural characteristic: departmentalization is rigid in mechanistic and loose in organic -structural characteristic: managerial hierarchy (levels of management) is tall (many levels) in mechanistic and flat (few levels) in organic -structural characteristic: span of control is narrow in mechanistic and wide in organic -structural characteristic: decision-making authority is centralized in mechanistic and decentralized in organic -structural characteristic: chain of command is long in mechanistic and short in organic

steps of the employee selection process

1. initial screening: application and interview 2. employment testing 3. selection interview 4. background and reference checks 5. physical examination 6. decision to hire

union organizing process and election

1. union contact with employees 2. authorization card campaign 3. petition for certification election 4. NLRB determination of bargaining unit 5. employer and union pre-election campaigns 6. election 7a. certification of union and start of collective bargaining 7b. rejection of union

strengths and weaknesses of group decision making

STRENGTHS -Groups bring more information and knowledge to the decision-making process. -Groups offer a diversity of perspectives and, therefore, generate a greater number of disagreements. -Group decision-making results in a higher-quality decision than does individual decision-making. -Participation of group members increases the likelihood that a decision will be accepted. WEAKNESSES -Groups typically take a longer time to reach a solution than an individual takes. -Group members may pressure others to conform, reducing the likelihood of alternatives. -The process may be dominated by one or a small number of participants. -Groups lack accountability, because it is difficult to assign responsibility for outcomes to any one individual.

strategies of unions and employers

UNION STRATEGIES -strike: employees refuse to work -boycott: Employees try to keep customers and others from doing business with employer. -picketing: Employees march near entrance of firm to publicize their view of dispute and discourage customers. -corporate campaign: Union disrupts stockholder meetings or buys company stock to have more influence over management. EMPLOYER STRATEGIES -lockout: Employer refuses to let employees enter plant to work. -strike replacements: Employer uses nonunion employees to do jobs of striking union employees. -mutual-aid pact: Employer receives money from other companies in industry to cover some of income lost because of strikes. -shift production: Employer moves production to nonunion plant or out of country.

human resource planning process

corporate strategy and policy->human resource objective and policies->COMPARE internal supply forecast VS human resource demand forecast. No difference: requirement equals supply. Human resource surplus: take action= 1. Reassign 2. Lay off 3. Terminate 4. Retire Human resource shortage: take action= 1. Hire 2. Pay overtime 3. Subcontract

the process of negotiating labor agreements

employer bargaining preparation / union bargaining preparation->exchange of initial demands and proposals->bargaining agenda->bargaining compromise, concession, and tentative agreement->top management approval/vote of union members->ratification OR rejection and strike->resumption of bargaining

performance planning and evaluation

performance planning: setting standards and expectations->employee job task behavior->performance evaluation->rewards and job changes ->(performance feedback)->/back to/employee job task behavior

employee training and development process / the process of creating and implementing training and development activities

training needs assessment->training objective->design training program->conduct training program->training program evaluation->training objective/training needs assessment