Management Final

alternative dispute resolution

mediation, arbitration, and other ways of resolving conflicts with the help of a specially trained, neutral third party without the need for a formal trial or hearing many companies find this effective 1. mediation: outside third party (the mediator) enters the situation with the goal of assisting the parties in reaching an agreement, do not change agreement or press parties to come to an agreement, can be beneficial even without conflict resolution 2. arbitration: parties submit the dispute to the third-party arbitrator who makes the decision 3. mediation-arbitration: mediation followed by arbitration

ethics and decision making

more unethical under rational decision-making model trolley example

types of leader decision making

autocratic: leaders make the decision alone without necessarily involving employees in the decision-making process democratic: employees participate in the making of the decision laissez faire: leave employees alone to make the decision, the leader provides minimum guidance and involvement in the decision, more problematic one way has not been shown to be the best - based on the situation

logical fallacies

common errors in reasoning that undermine the logic of an argument 1. Ad hominem arguments are insulting or attacking a person or group of people rather than their arguments or actions 2. Bandwagon Argument: refers to an appeal that relies on what a group of people (or most people) believe in order to persuade others to think the same way 3. Circular Reasoning Argument: simply the restatement of the same argument instead of actually providing new evidence 4. Either/or Argument: reduces the issue to only two sides 5. Moral Equivalence Argument: compares minor issues with major misdeeds 6. Red Herring Argument: refer to a conclusion based on a series of unrelated events where if one thing happens, then eventually a series of negative outcomes will lead to a major problem, thus, we must not do the first thing 7. Straw Person Argument: oversimplifying an opponent's argument and then knocking it down Steps to effective communication: 1. Avoid logical fallacies. 2. Lay out each premise in clear language. 3. Provide evidence for each premise you offer. 4. Draw a clear connection to the conclusion.

Angry Birds Example

concentrated on becoming number one in smaller markets such as Finland, Sweden, and Czech Republic, which gave them leverage to talk to Apple executives and convince them to make Angry Birds the featured game of the week in the UK

intergroup conflict

conflict that occurs between two or more groups ex: Canadian Air and Air Canada merger in-group bias: favor the group to which they belong

levels of organizational culture

deepest level: assumptions --> taken for granted, and they reflect beliefs about human nature and reality second level: values --> shared principles, standards, and goals third level: artifacts --> visible, tangible aspects of organizational culture values and, at a deeper level, the assumptions that shape the organization's culture can be uncovered by observing how employees interact and the choices they make inquiring about their beliefs and perceptions regarding what is right and appropriate behavior start by observing artifacts

Self-Esteem for Leadership

degree to which a person is at peace with oneself and has an overall positive assessment of one's self-worth and capabilities seem to be relevant to whether someone is viewed as a leader being tall linked to leadership support others

which style is the best?

depends on the situation collaborating style seems to be the most versatile most tend to use dominating can depend on role

dependency and power

directly related the more that a person or unit is dependent on you, the more power you have over them 3 questions to assess dependency 1. scarcity: uniqueness of the resource, effective persuaders exploit this reality by making an opportunity or offer seem more attractive because it is limited or exclusive 2. importance: value of the resource, if the resources or skills you control are vital to the organization, you will gain some power 3. substitutability: one's ability to find another option that works as well as the one offered, ex: oil

limitations to behavioral approaches

do not take into account when behaviors are exhibited very dependent on the situation

boundaryless organization

refers to an organization that eliminates traditional barriers between departments, as well as barriers between the organization and the external environment -modular organization where all the nonessential functions are outsourced --retain only the value-generating and strategic functions in-house, while the rest of the operations are outsourced to many suppliers --ex: Toyota -strategic alliance: similar to a joint venture, two or more companies find an area of collaboration and combine their efforts to create a partnership that is beneficial for both parties --ex: Pepsi and Starbucks -may involve eliminating the barriers separating employees, such as traditional management layers or walls between different departments -self-managing teams create an environment where employees coordinate their efforts and change their own roles to suit the demands of the situation

Negotiation Failure Example: PointCast

rejected an offer to be purchased by the time the went public they were half the value of the offer too focused on getting more money

hierarchical levels

tall structures: have several layers of management between frontline employees and the top level, smaller span of control, more monitoring of employee activity, security needs flat structures: consist of few layers, wider span of control, not close supervision, higher need satisfaction and self-actualization, self-reliance ex: Valve - no managers -100% control over projects -peer rankings for bonuses -roll desks to move quickly to help -downsides --> hard to catch poor performers, not good for promotions

broad categories of behavior

task oriented behavior or initiating structure: structuring the roles of subordinates, providing them with instructions, and behaving in ways that will increase the performance of the group, higher productivity people oriented behavior or consideration: showing concern for employee feelings and treating employees with respect, higher satisfaction both important for organizations, depends on the leader's role

how do you know if your decision-making process is creative?

fluency - refers to number of ideas generated flexibility - how different the ideas are from each other originality - how unique a person's idea are people's personality traits, attributes, and situational context SCAMPER - checklist tool that helps you think of changes you can make to an existing marketplace to create a new one brainstorming - group process of generating ideas that follow a set of guidelines, including no criticism of ideas during the brainstorming process, the idea that no suggestion is too crazy, and building on other ideas idea quotas - group must reach a set number of ideas before they are done, is recommended to avoid process loss and maximize the effectiveness of brainstorming wildstorming - focuses on ideas that are impossible and then imagines what would need to happen to make them possible crowdsourcing - outsourcing a problem to a crowd

tips of successful negotiations

focus on agreement first be patient whose reality? deadlines be comfortable with silence

Different Approach to Leadership at Apple: Tim Cook

following Steve Jobs doesn't crave the attention more social issues diversity, leadership, and transparency

referent power

from the personal characteristics of the person such as the degree to which we like, respect, and want to be like them charisma ex: Steve Jobs

departmentalization

functional structures: group jobs based on similarity in functions, each person serves a specialized role and handles large volumes of transactions divisional structure: departments represent the unique products, services, customers, or geographic locations the company is serving, each unique product or service the company is producing will have its own department most environments are hybrids of the two -functional when smaller number of products, stable environment -divisional when agile and turbulent environment, greater mental ability

Intelligence for Leadership

general mental ability - has been related to a person's emerging as a leader within a group actual intelligence different than perceived intelligence too much intelligence negative for leadership past threshold high emotional intelligence - high level of self- awareness, motivation, empathy, and social skills ability to control their own emotions and understand other people's emotions, their internal motivation, and their social skills

conflict isn't always bad

graph is upside down u shaped for performance vs conflict good at early stages of idea generation personal conflict never good

organizational change

movement of an organization from one state of affairs to another 1. technology -overall complexity of computer circuits will double every 18 months with no increase in cost -retailers unable to compete with e-commerce 2. globalization -can be either a threat or an opportunity for organizations, depending on their ability to adapt to relevant changes -finding that it is often cheaper to produce goods and deliver services in some countries compared to others -leading to stress 3. market conditions -environmental changes, health-consciousness 4. organizational growth -those that succeed have the potential to evolve into large, complex organizations over time 5. poor performance -change is more likely to happen if the company is performing poorly and if there is a perceived threat from the environment 6. resistance to change -one of the top two reasons why change efforts fail -active resistance, passive resistance, compliance, support ex: QWERTY keyboard

making intuitive decisions

intuitive decision making model: arriving at decisions without conscious reasoning -used often by managers -that in a given situation, experts making decisions scan the environment for cues to recognize patterns -once a pattern is recognized, they can plan a potential course of action through to its outcome based on their prior experience

making rational decisions

rational decisions making model -formal steps with the goal of achieving an optimal result in terms of the quality of a decision -applied to major decisions in which the costs are high and the consequences of different decision outcomes are significant -not finding alternatives is most common issue -establish decision criteria before generating alternatives -more alternatives the better -issues: assumes people understand decision to be made, know all alternatives, no perpetual biases, want to make optimal decision -analysis paralysis: more and more time is spent on gathering information and thinking about it, but no decisions actually get made

organizational culture and ethics

(1) A belief that they are facing a war—instead of facing normal competition in the marketplace (2) a belief that ends justify the means (3) a belief in the value of job security and a belief that, to keep jobs secure, unethical acts may be necessary (4) failure to punish unethical actions or reward ethical acts (5) acting like a commune, and a desire to punish those who challenge the status quo -leaders, by demonstrating high levels of honesty and integrity in their actions, can model the behaviors that are demanded in an organization -correlation between setting very difficult goals for employees and unethical behavior

Theory X and Theory Y

- Theory X: The assumption that employees dislike work, are lazy, dislike responsibility and must be coerced to perform, will establish rigid work environment - Theory Y: The assumption that employees like work, are creative, seek responsibility and can exercise self-direction, more supportive role

Leadership: Pepsi

-Indra Nooyi --performance with purpose --tackling the obesity epidemic by improving the nutritional status of PepsiCo products, and making PepsiCo an environmentally sustainable company --challenged by her high-performance standards and expectation of excellence --not afraid to give people negative feedback --assume that people have good intentions

organizational structure and change around the globe

-Japan - ringi system involves proposals at lower levels being signed and passed along to higher level management in an effort to build consensus -cultures where leaders are expected to be more authoritarian and power distant, organic structures may be relatively less useful for motivating and managing employees -Cultures that are uncertainty avoidant (such as Germany and France) are relatively uncomfortable with change and prefer structured situations that reduce ambiguity, whereas cultures low in uncertainty avoidance (such as the United States and China) are more comfortable with change -US - change agents are more likely to use inspirational appeals and rational persuasion -China - more effective influence strategy seems to be asking for the help of a higher level person to ensure the success of the change process

leader humility

-ability to view their own shortcomings accurately, an ability to appreciate the strengths of others, and an openness to feedback to learn and improve -employees embrace a "shared leadership" approach to teamwork, which helps with team performance -allocate tasks more effectively within the group -employees imitate leaders -when the team has high levels of power distance, leader humility had negative effects on the team, suggesting that some teams may actually expect their leaders to be all powerful, which would diminish the usefulness of leader humility for the team

Dr. Logg's Class

-algorithms outperform humans -useful in identifying errors in hiring process -trust algorithms more than people -people trust themselves over algorithms -when people see a mistake form algorithm, less likely to trust in future -algorithms can aggregate individual data points with the purpose of unearthing patterns that people have difficult detecting -people need to be held responsible -don't blame an algorithm, blame the biased input -need to be transparent -algorithms compound bias that is in input data -Amazon able to pinpoint bias in past hiring to improve -simple averaging more accurate than experts -validity, inconsistency from humans -algorithms provide reliability and validity -create objective ratings that can be tested for bias -unstructured interviews create inconsistent situations

leadership around the globe

-all the leadership theories that we describe in this chapter are U.S.-based -Global Leadership and Organizational Behavior Effectiveness or GLOBE --results are encouraging, because, in addition to identifying differences, they found similarities in leadership styles as well --people feel that honesty, decisiveness, being trustworthy, and being fair are related to leadership effectiveness --being irritable, egocentric, and a loner are negative --visionary and charismatic leaders were found to be the most influential leaders around the world --definition of charismatic differs

situational leadership theory

-argues that leaders must use different leadership styles depending on their followers' development level -employee readiness (defined as a combination of their competence and commitment levels) is the key factor determining the proper leadership style -popular 1. low competence, high commitment = directing 2. low competence, low commitment = coaching 3. medium to high competence, variable commitment = supporting 4. high competence, high commitment = delegating

leadership and ethics

-research shows that people tend to follow leaders or other authority figures even when doing so can put others at risk ex: Milgram experiment -subordinates pay attention to the level of ethical behaviors the leader demonstrates -by acting as a role model for ethical behavior, rewarding ethical behaviors, publicly punishing unethical behaviors, and setting high expectations for the level of ethics, leaders play a key role in encouraging ethical behaviors in the workplace

is all resistance bad?

-resistance to change is a valuable feedback tool that should not be ignored

how are cultures created?

-shaped as the organization faces and deals with both external and internal challenges and learns how to deal with them -when the organization's way of doing business provides a successful adaptation to environmental challenges and ensures success, those values are retained -founder values --inevitably tied to the personality, background, and values of its founder or founders, as well as their vision for the future of the organization --shaped in the early days of a company's history, hard to change --ex: Ben and Jerry's --become part of the corporate culture to the degree they help the company be successful -industry demands --industry characteristics and demands act as a force to create similarities among organizational cultures --high regularized industry, might expect the presence of a large number of rules and regulations, a bureaucratic company structure, and a stable culture

mechanistic structure

-similar to bureaucracies, as they are highly formalized and centralized -communication tends to follow formal channels, and employees are given specific job descriptions delineating their roles and responsibilities -rigid and resist change, making them unsuitable for being innovative and taking quick action -downside of inhibiting entrepreneurial action and discouraging the use of individual initiative on the part of employees -limit individual autonomy and self-determination, which will likely lead to lower levels of intrinsic motivation on the job -main advantage of a mechanistic structure is its efficiency -McDonald's

NASA case

-space shuttle Challenger killed astronauts - launched too soon -Flight Readiness Review -need to speak up if they see something wrong - for Discovery, had 3 FRRs -openness of discussion -not routine, commit to safety above flight dates

abusive leadership

-sustained display of hostile verbal and nonverbal behaviors toward employees -display behaviors such as giving employees the silent treatment, reminding them of their past mistakes, breaking promises, being rude and lying to employees-abusive leaders cost organizations more than $20 billion, mostly due to lost productivity, absenteeism, and higher health care costs ex: puts you down, no credit, lies, breaks promises, is rude

organizational culture

-system of shared assumptions, values, and beliefs that indicate what is appropriate and inappropriate behavior within a given organization -largely invisible to individuals because many elements of an organization's culture are a function of intangible social cues rather than explicit written policies -organizations have different cultures

what can organizations do during onboarding?

-take a more structured and systematic approach to new employee onboarding -while others follow a "sink or swim" approach in which new employees struggle to figure out what is expected of them and what the norms are -formal orientation program indoctrinates new employees into the company culture, as well as introduces them to their new jobs and colleagues -formal orientation programs are helpful in teaching employees about the goals and history of the company, as well as communicating the power structure

Milgram study

-tested how far individuals would go in hurting another individual when told to do so by a researcher -few stopped once they were told by the researcher that they would not personally be held responsible for the outcome of the experiment and that their help was needed to complete the experiment -65% were willing to administer the maximum of 450 volts even as they heard screams of pain from the learner, all 300

ethics and politics/power

-the degree to which leaders behaved ethically made a greater difference in employee citizenship behaviors -ethical leadership reduces the perception that the organization is political -power has the potential to undermine the quality of one's relationships and reduce altruism -importance of having checks and balances in organizations, and how one's power may influence how they interpret a given situation and what they find acceptable

Zimbardo study

-this social psychologist studied how people behave when they are asked to play roles, in particular as prison guards or prisoners -prisoners began to feel depressed and helpless, guards began to be aggressive and abusive

matrix organizations

-traditional functional structure with a product structure -employees reporting to department managers are also pooled together to form project or product teams-->each person reports to a department manager as well as a project or product manager -product managers have control and say over product-related matters -created in response to uncertainty and dynamism of the environment and the need to give particular attention to specific products or projects -balance the benefits of product-based and traditional functional structures -increase communication and cooperation among departments, because project managers will need to coordinate their actions with department managers -providing quick responses to technical problems and customer demands -violates the unity of command, a principle that is often prevalent in traditional organizations, ripe for conflict ex: Nike

Trusting Employees to Make Decisions Example: Microsoft

key to culture change was individual empowerment do not dwell on constraints ability to grow based on employee's ability to learn from mistakes

expert power

knowledge and skill relative to field of study ex: Oprah Winfrey

what is influence?

making logical arguments -understand the use of logic and logical fallacies and persuasion -logic refers to the principles of reasoning, especially regarding the structure of arguments related to deductive reasoning where the premises provide conclusive proof for the conclusion

Dale Carnegie

1. Become genuinely interested in other people. 2. Smile. 3. Remember that a person's name is to that person the sweetest and most important sound in any language. 4. Be a good listener. Encourage others to talk about themselves. 5. Talk in terms of the other person's interests. 6. Make the other person feel important—and do it sincerely. -specifically deals with enhancing referent power

intrapersonal conflict

within a person role conflict and ambiguity are examples

what if you don't have enough conflict

within meaningful group discussions there are usually varying opinions about the best course of action during healthy debates, people point out difficulties or weaknesses in a proposed alternative and can work together to solve them key to keeping the disagreement healthy is to keep the discussion focused on the task, not the personalities good conflict ex: Hewlett-Packard Development Company LP

interpersonal conflict

conflict that occurs between two or more individuals source of stress ex: competition or difference in values

English Teacher to Billionaire: Jack Ma

Alibaba -former English teacher is known for stories such as getting rejected from Harvard University 10 times and being denied employment in his local KFC restaurant -he would travel China presenting road shows and speak to business owners about the benefits of e-commerce -cautions entrepreneurs against aggressive competition and seeing everyone as an enemy

positive outcomes of conflict

Consideration of a broader range of ideas, resulting in a better, stronger idea Surfacing of assumptions that may be inaccurate Increased participation and creativity Clarification of individual views that build learning

negative outcomes of conflict

Increased stress and anxiety among individuals, which decreases productivity and satisfaction Feelings of being defeated and demeaned, which lowers individuals' morale and may increase turnover A climate of mistrust, which hinders the teamwork and cooperation necessary to get work done

negotiation around the world

Japan and Korea - harmony Germany - conflict US - good at teams Taiwan - individual negotiation West - more business East - relationship building collectivist - more deceptive

The Case of General Motors

Mary Barra -CEO of General Motors -focused on simple but important changes such as the company's dress policy -her philosophy is that everyone is better off if they stop making assumptions about what other people want or need -you can't fake culture

decision making around the globe

US like more quick decisions, Chinese like reflection Nemawashi - consensus before decision made, quicker implementation

reward power

ability to grant a reward, such as an increase in pay, a perk, or an attractive job assignment tends to accompany legitimate power and is highest when the reward is scarce

power

ability to influence the behavior of others to get what you want -power tends to corrupt, and absolute power corrupts absolutely -discomfort with power reduces power

coercive power

ability to take something away or punish someone for noncompliance often works through fear, and it forces people to do something that ordinarily they would not choose to do

advantages and disadvantages to individual decisions

advantages -typically faster than group decision making -best individual in a group usually outperforms the group -accountability is easier to determine disadvantages -fewer ideas -identifying the best individual can be challenging -possible to put off making decisions if left alone to do it

advantages and disadvantages to group decisions

advantages: -diversity in ideas and can piggyback off each other -greater commitment to ideas -interaction can be fun and serves as a team-building task disadvantages -takes longer -group dynamics such as groupthink can occur -social loafing—harder to identify responsibility for decisions

legitimate power

power that comes from one's organizational role or position ex: Jeff Bezos

conflict management

resolving disagreements effectively

decision making

selecting choices among alternative courses of action—which may also include inaction

conformity

-people's tendencies to behave consistently with social norms -important it is to create checks and balances to help individuals resist the tendency to conform or to abuse authority

bounded rationality model

-recognizes limitations of decision-making process -individuals knowingly limit their options to a manageable set and choose the first acceptable alternative without conducting an exhaustive search for alternatives -satisfice: first option to meet minimum criteria -decision maker saves cognitive time and effort by accepting the first alternative that meets the minimum threshold

Path-Goal Theory of Leadership

-based on expectancy theory of motivation -leaders will create satisfied and high-performing employees by making sure that employee effort leads to performance, and their performance is rewarded by desired rewards -leader removes roadblocks along the way and creates an environment that subordinates find motivational four leadership styles 1. supportive: emotional support, successful with high stress of monotonous jobs 2. directive: specific directions to employees, lead employees by clarifying role expectations, setting schedules, and making sure that employees know what to do on a given work day -works well with role ambiguity -does not with role clarity and high ability 3. participative: make sure that employees are involved in the making of important decisions, effective with employees with high abilities, decisions relevant to them, high internal locus of control 4. achievement-oriented: set goals for employees and encourage them to reach their goals, high ability and high motivation employees -not fully tested but positive results so far

why does organizational culture matter?

-culture may be one of its strongest assets, as well as its biggest liability -may be related to increased performance -fits with the demands of the company's environment -having the "wrong" culture may lead to performance difficulties, may be responsible for organizational failure, and may act as a barrier preventing the company from changing and taking risks -effective control mechanism for dictating employee behavior

servant leadership

-defines the leader's role as serving the needs of others -primary mission of the leader is to develop employees and help them reach their goals -put their employees first, understand their personal needs and desires, empower them, and help them develop in their careers -servant leadership has a positive impact on employee commitment, employee citizenship behaviors toward the community (such as participating in community volunteering), and job performance -effective in developing teams with confidence in their capabilities, who end up performing at higher levels -higher levels of customer service -hard due to putting others before own goals

centralization

-degree to which decision-making authority is concentrated at higher levels in an organization -many important decisions are made at higher levels of the hierarchy, whereas in decentralized companies, decisions are made and problems are solved at lower levels by employees who are closer to the problem in question -decentralized companies give more authority to lower level employees, resulting in a sense of empowerment, good for creativity -centralization more effective in stable environments -organizations may consider centralizing some of their operations, while maintaining decentralization in other units

Four Seasons Hotel

-distinguish them from the competition was service quality -every interaction is an opportunity to make the customer feel like a celebrity -incredibly selective hiring policy where each employee is interviewed at least four times, mainly to see if they have the right service attitude -employees who do not fit the culture are quickly replaced with ones who do -managers are coaches and mentors, and employees are fully empowered, trusted, and valued -promotes from within

how are cultures maintained?

-early values of a company's culture exert influence over its future values -an organism that protects itself from external forces -determines what types of people are hired by an organization and what types are left out ASA 1. attraction -employees are attracted to organizations where they will fit in -can be influenced by values, personality, and benefits 2. selection -companies are also looking for people who will fit into their current corporate culture -hiring people for fit with their culture, as opposed to fit with a certain job 3. attrition -refers to the natural process in which the candidates who do not fit in will leave the company New Employee Onboarding (organizational socialization) -refers to the process through which new employees learn the attitudes, knowledge, skills, and behaviors required to function effectively within an organization -new employees feel confident regarding their ability to perform, sense that they will feel accepted by their peers, and understand and share the assumptions, norms, and values that are part of the organization's culture -higher job satisfaction, stronger organizational commitment, and longer tenure within the company

formalization

-extent to which policies, procedures, job descriptions, and rules are written and explicitly articulated -these structures control employee behavior using written rules, and employees have little autonomy to make decisions on a case-by-case basis -more predictable employee behavior, less ambiguity and more direction -reduces innovativeness, motivation, job satisfaction

organic structure

-flexible, decentralized structures with low levels of formalization -communication lines are more fluid and flexible -employee job descriptions are broader, and employees are asked to perform duties based on the specific needs of the organization at the time as well as their own expertise levels -related to higher levels of job satisfaction on the part of employees -conducive to entrepreneurial behavior and innovativeness -3M --maintain small company atmosphere with small units

more specifics on transformational leadership

-followers are more likely to trust the leader -transformational leaders express greater levels of concern for people's well-being and appeal to people's values, followers are more likely to believe that the leader has a trustworthy character -cognitive abilities, agreeableness, extraversion, and conscientiousness are positively related to charismatic leadership -can gain charisma not genetic -charisma can have a down side -charisma linked to present success but not necessarily future

Toyota Case

-gold standard of the automotive industry -recall crisis --rapid growth of the company --centralized, Japanese-controlled organizational structure -recognizing the role of groupthink, insularity, and slow decision making, the company restructured to decentralize -every crisis as a learning opportunity is certainly consistent with the continuous improvement philosophy

organizational culture around the globe

-if the national culture in general emphasizes competitiveness, a large number of the companies operating in this context may also be competitive -in countries emphasizing harmony and conflict resolution, a team-oriented culture may more easily take root -important for managers to know the relationship between national culture and company culture

what can organizational insiders do during onboarding?

-information and support leaders provide determine how quickly employees learn about the company politics and culture -mentor - crucial to helping new employees adjust by teaching them the ins and outs of their jobs and how the company really operates -when mentors and protégés feel that they had input in the mentor-protégé matching process, they tend to be more satisfied with the arrangement -mentor training -leadership --direct correspondence between a leader's style and an organization's culture --leader behavior, the consistency between organizational policy and leader actions, and leader role modeling determine the degree to which the organization's culture emphasizes ethics --shape culture by their reactions to the actions of others around them -reward system --type of reward systems used in the organization, and the kinds of behaviors and outcomes it chooses to reward and punish --whether the organization rewards behaviors or results --team-oriented when behavioral, outcome oriented when result-based

authentic leadership

-key advice is "be yourself" -they are self-aware -they are introspective, understand where they are coming from, and have a thorough understanding of their own values and priorities -they are not afraid to act the way they are, high levels of personal integrity, say what they think, behave in a way consistent with their values, find own style ex: Howard Schultz --> the founder of Starbucks Coffee --> pioneered giving health insurance and retirement to part-time employees --> $30 million gift to troops

fiedler's contingency theory

-leader's style is measured by a scale called Least Preferred Coworker scale - rank coworker they like the least - if high = people oriented, if low = task oriented -placing the right people in the right situation or changing the situation to suit an individual is important to increase a leader's effectiveness -useful but not fully proven

Kronos

-movement toward offering employees unlimited vacation time · Making sure you have fundamental trust in the people who work for you. · Considering re-investing savings associated with not paying out unused vacation time into other employee benefits. · Considering ways to reward more senior employees who worked decades to accrue their considerable vacation time. · Fostering ways to ensure that the organizational culture allows employees to take time off without guilt or fear of how it will look to upper management. · Working with managers to ensure that the new policy does not become a burden on them. · Tracking vacation use to understand trends and detect issues or unintended consequences. · Communicating the goals and issues around discretionary time off to avoid problems.

do organizations have a single culture?

-multiple cultures within any given organization -culture that emerges within different departments, branches, or geographic locations is called a subculture -managers will need to make an effort to understand subculture values to see its impact on workforce behavior and attitudes -subculture may take the form of a counterculture -counterculture may be tolerated by the organization as long as it is bringing in results and contributing positively to the effectiveness of the organization -may lead to actions that would take away the autonomy of the managers and eliminate the counterculture

what can employees do during onboarding?

-new employees who are proactive, seek feedback, and build strong relationships tend to be more successful than those who do not -networking is another important behavior new employees may demonstrate -60% report not being able to form effective relationships with colleagues as the primary reason for their failure

strength of culture

-one that is shared by organizational members -have a more powerful influence over the way employees think and behave -organizations where culture is strong and emphasizes adaptability demonstrate better financial performance in dynamic environments, as having an adaptable culture is well suited to a dynamic environment, and having consensus in cultural values serves as an advantage -strong outcome-oriented culture coupled with unethical behaviors and an obsession with quantitative performance indicators may be detrimental to an organization's effectiveness -difficulty of changing established organizational behaviors -ex: Volkswagen struggling to change culture after emissions scandal -liability with merger --ex: Amazon and Whole Foods

learning organizations

-one where acquiring knowledge and changing behavior as a result of the newly gained knowledge are part of an organization's design -experimenting, learning new things, and reflecting on new knowledge are the norms ex: 3M is one company that institutionalized experimenting with new ideas in the form of allowing each engineer to spend one day a week working on a personal project -learning from other corporations as well as good at understanding customer habits to formulate ideas

how do cultures change?

-part of a company's DNA and is resistant to change efforts -if an organization is experiencing failure in the short run or is under threat of bankruptcy or an imminent loss of market share, it would be easier to convince managers and employees that culture change is necessary -external environment may force an organization to undergo culture change -mergers 1. creating a sense of urgency -important to communicate the need for change to employees -create a sense of urgency on the part of employees and explain to them why changing the fundamental way in which business is done is so important 2. changing leaders and other key players -culture change often follows changes at the highest levels of the organization -a company may find it helpful to remove managers and other powerful employees who are acting as a barrier to change -replacing these positions with employees and managers giving visible support to the change effort may increase the likelihood that the change effort succeeds 3. role modeling -employees modify their own beliefs and behaviors to reflect those of the leader -ultimate goal is that these behaviors will trickle down to lower level employees 4. training -well-crafted training programs may be instrumental in bringing about culture change by teaching employees new norms and behavioral styles 5. changing the reward system -criteria with which employees are rewarded and punished have a powerful role in determining the cultural values in existence -rewarding employees who embrace the company's new values and even promoting these employees, organizations can make sure that changes in culture have a lasting impact 6. creating new symbols and stories -success of the culture change effort may be increased by developing new rituals, symbols, and stories -symbolic actions show executives' commitment to change, and if they resonate with people, they cause emotional reactions on the part of employees

Asch study

-participants were asked to select the line closest in line to length X, when cohorts gave obviously wrong answers, more than 1/3 of the subjects conformed and agreed with the incorrect choices, depends on group size: 7 is optimal -effect was decreased by 75% if just one of the insiders gave the correct answer, even if the rest of the group gave the incorrect answer

power around the globe

-people in high power distance countries expect unequal distribution of power, such as large differences in pay and status -countries with a low power distance rating, such as Australia, the Netherlands, and Sweden, value cooperative interaction across power levels, they emphasize equality and opportunity for everyone, flatter with higher worker involvement

social networks

-visual maps of relationships between individuals -vital parts of organizational life as well as important when you are first looking for a job 3 main functions 1. deliver private information 2. allow individuals to gain access to diverse skill sets 3. can help create power social network analysis: purpose is to uncover the informal connections between people -indirect way is to analyze emails between people, look at who works together -direct approaches to SNA involve doing a survey that asks questions directly, more intrusive -maps draw incoming and outgoing arrows between people to show the number of ties coming to a person (contacts that the person receives) and the number of ties outgoing (contacts that the person initiates) -central connectors, boundary spanners, peripheral specialists -strong ties: emotional and informational support -weak ties: less frequent interaction, emotional detachment, useful in innovation -organizations can take actions to modify people's roles or responsibilities in ways that improve communication or diffuse innovation throughout the organization more effectively by putting people or departments in touch with each other -build your own network

making creative decisions

-vital part of being an effective decision maker problem identification --> immersion (think about problem consciously) --> incubation (does not think about it) --> illumination (solution becomes apparent) --> verification and application (verifies feasibility and implements)

organization structure and change vs ethics

-when corporate structure is too rigid and hierarchical, employees have fewer opportunities to develop their moral intelligence -when employees do not have any autonomy to make decisions, and when such decisions are usually referred to a higher level, they do not find the opportunity to experience moral development, which may have implications for the degree of ethical behaviors demonstrated by employees -ethical issues that arise when the decision to terminate some employees is made, such as whether employees are going to be given advance notice regarding the layoffs, if they will be allowed to return to their work stations and say good-bye to their colleagues, or if they will be escorted to the door by security -ethical leadership was a key predictor of employee attitudes and performance during organizational change, and particularly when employees were involved in the planning stages of change

women and leadership

-women make up slightly more than half the U.S. population, earn around 60% of all college degrees, and represent 47% of the workforce, yet hold only 5% of the CEO positions of the Fortune 1,000 companies -men are not more task oriented and women are not more relationally oriented than the opposite sex -confirming stereotypes, women tend to display democratic leadership and are less likely to demonstrate autocratic leadership compared to men -women displaying higher levels of transformational leadership styles -when women occupied stereotypically masculine roles, they were rated as being less effective than men -when women succeed in stereotypically masculine jobs, they are liked less, suggesting that there may be a penalty for successful women in some domains, which may include leadership

avoiding decision making traps

1. anchoring and adjustment bias - tendency for individuals to rely too heavily on arbitrary numbers, irrelevant traits, or facts when making decisions 2. availability bias - situation in which information that is more readily available is seen as more likely to occur 3. escalation of commitment bias - individuals continue on a failing course of action after information reveals this may be a poor path to follow 4. fundamental attribution error - bias that exists when positive outcomes are seen as a function of personal characteristics while negative outcomes are attributed to external circumstances 5. hindsight bias - occurs when looking backward in time where mistakes made seem obvious after they have already occurred, easy to pass judgement on others' decisions 6. judgements about correlation and causality bias - correlation is confused with causality 7. misunderstanding and sampling bias - generalization from small number of people 8. overconfidence bias - individuals overestimate their ability to predict future events 9. framing bias - tendency of decision makers to be influenced by the way that a situation or problem is presented 10. satisficing - individuals select the first acceptable alternative instead of seeking the best possible decision

Conflict Handling Styles

1. avoidance: uncooperative and unassertive, avoid conflict and delay decision 2. accommodation: cooperative and unassertive, give in to other side, fear speaking up or value relationship more than conflict 3. compromise: middle-ground style, individuals have some desire to express their own concerns and get their way but still respect the other person's goals 4. competition: want to reach their goal or get their solution adopted regardless of what others say or how they feel, can lead to poor relationships 5. collaborating: assertive and cooperative: work jointly on an activity

6 ways to handle conflict

1. change the structure: ex: if two groups seem to have incompatible goals have them report to one manager who can help align their goals 2. change the composition of a team: separate personalities that were at odds (if not possible try to limit contact) 3. consider majority rule: makes decision seem more fair 4. problem solve: individuals or groups in conflict are asked to focus on the problem, not on each other, and to uncover the root cause of the problem 5. create a common opposing force: focusing attention on a common enemy such as the competition 6. consider the role of mood: negotiators in positive moods tend to be more cooperative and less likely to engage in conflict as well as even come to agreements that are more advantageous to all parties

why do people resist change?

1. disrupted habits 2. personality -people who have a positive self-concept are better at coping with change, probably because those who have high self-esteem may feel that whatever the changes are, they are likely to adjust to it well and be successful in the new system -risk averse negatively correlated 3. feelings of uncertainty -feeling that the future is unclear is enough to create stress for people because it leads to a sense of lost control and requires greater attention and problem-solving effort 4. personal impact of the change -more welcoming of change that is favorable to them on a personal level 5. prevalence of change -the lack of a history of successful changes may cause people to feel skeptical toward the newly planned changes 6. perceived loss of power -may affect their power and influence in the organization -losing status is particularly painful for high status individuals, disrupting their future performance

negotiation styles

1. distributive approach: traditional fixed-pie approach, each tried to win bigger piece, limits creative solutions 2. integrative approach: both parties look for ways to integrate their goals under a larger umbrella, expand to get more, win-win, not common, cooperative stance and listening

dimensions of culture

1. innovative culture: flexible and adaptable, and experiment with new ideas, flat hierarchy in which titles and other status distinctions tend to be downplayed, ex: Apple 2. aggressive culture: value competitiveness and outperforming competitors, may fall short in the area of corporate social responsibility, ex: Wells Fargo 3. outcome-oriented culture: emphasize achievement, results, and action as important values, hold employees as well as managers accountable for success and utilize systems that reward employee and group output, ex: Nordstrom 4. stable cultures: predictable, rule oriented, and bureaucratic, aim to coordinate and align individual effort for greatest levels of efficiency, prevent quick action, and as a result may be ill suited for a changing and dynamic environment, ex: GM recovering from bankruptcy 5. people-oriented culture: prevent quick action, and as a result may be ill suited for a changing and dynamic environment, live the mantra that "People are their greatest asset", atmosphere where work is fun and employees do not feel required to choose between work and other aspects of their lives, ex: Costco 6. team-oriented cultures: collaborative and emphasize cooperation among employees, ex: Southwest cross-training 7. detailed-oriented culture: characterized in the OCP framework as data-driven and emphasize precision, analytical decision making, and paying attention to details, ex: Stitch Fix 8. service culture: not one of the dimensions of OCP, but given the importance of the retail industry in the overall economy, having a service culture can make or break an organization, employees are trained to serve the customer well, and cross-training is the norm, employees are empowered to resolve customer problems in ways they see fit, ex: Southwest 9. safety culture: provides a competitive advantage, because the organization can reduce accidents, maintain high levels of morale and employee retention, and increase profitability by cutting workers' compensation insurance costs, companies suffer severe consequences when they are unable to develop such a culture, ex: British Petroleum explosion

five stages of investigation

1. investigation: information gathering stage, first start with yourself and your goals 2. determine your batna: best alternative to negotiated agreement, indicator of power 3. presentation: assemble the information you've gathered in a way that supports your position 4. bargaining: each party discusses their goals and seeks to get an agreement, main part is concessions (cooperativeness and moving forward), ask questions 5. closure: come to an agreement or one person walking away, follow with inquiring what would have made the deal go through

common negotiation errors

1. letting your ego get in the way 2. having unrealistic expectations 3. failing to negotiate/accepting the first offer 4. getting overly emotional 5. letting past negative outcomes impact present ones

visual elements of organizational culture

1. mission statements -statement of purpose, describing who the company is and what it does -if the mission statement does not affect employee behavior on a day-to-day basis, it has little usefulness as a tool for understanding the company's culture -mission statement that is taken seriously and widely communicated may provide insights into the corporate culture 2. rituals -repetitive activities within an organization that have symbolic meaning -create camaraderie and a sense of belonging among employees 3. rules and policies -determine acceptable and unacceptable behavior, and thus the rules that exist in a company will signal the type of values it has -policies about issues such as decision making, human resources, and employee privacy reveal what the company values and emphasizes 4. physical layout -layout of employee offices, common areas, and other work spaces, communicates important messages about a company's culture -company that has a layout where high-level managers interact with employees (such as Zappos where the CEO sits in a cubicle) indicate a culture of team orientation and egalitarianism, whereas a company where high-level managers have their own floor may indicate a higher level of hierarchy 5. stories -communicate their culture to new employees and organizational members is through the skillful use of stories -compelling story may be a key mechanism through which managers motivate employees by giving their behavior direction and energizing them toward a certain goal -stories shared with new employees communicate the company's history, its values and priorities, and serve the purpose of creating a bond between the new employee and the organization

6 causes of conflict

1. organizational structure: ex: in matrix form of structure people report to two bosses - conflict built in 2. limited resources: competition among people or departments for limited resources is a frequent cause for conflict 3. task interdependence: accomplishment of your goal requires reliance on others to perform their tasks 4. incompatible goals: conflict arises when two parties think that their goals are mutually exclusive 5. personality differences: knowing that these differences are natural and normal lets us anticipate and mitigate interpersonal conflict 6. communication problems: small, unintentional communication problem, such as lost emails or dealing with people who don't return phone calls or lack of communication pathways

types of decisions

1. programmed decisions: decisions that occur frequently enough that we develop an automated response to them, decision rule: automated response to common problems 2. non programmed decisions: unique and important decisions require conscious thinking, information gathering, and careful consideration of alternatives -strategic: set the course for the organization -tactical: decisions about how things are done -operational: decisions that employees make each day to run the organization

Vroom and Yetton's Normative Decision Model

7 layers of questions to determine leadership style 1. decision significance 2. importance of commitment: employee cooperation 3. leader expertise: have all info to make decision? 4. likelihood of commitment: if leader makes autonomous decision, will employees commit 5. goal alignment: employees goal aligned with company goals 6. group expertise: expertise in decision-making area 7. team competence: ability to tackle problem 4 decision making styles 1. decide: leader makes decision 2. consult individually: leader gains info from individuals before making own decision 3. facilitate: leader shares info with the group and outlines parameters of decision 4. delegate: team makes decision -effective but complicated

Leader-Member Exchange Theory

high-quality LMX: leader forms a trust-based relationship with the member, the leader and member like each other, help each other when needed, and respect each other, in these relationships, the leader and the member are each ready to go above and beyond their job descriptions to promote the other's ability to succeed low-quality LMX: leader and the member have lower levels of trust, liking, and respect toward each other, these relationships do not have to involve actively disliking each other, but the leader and member do not go beyond their formal job descriptions in their exchanges, low loyalty and obligation -high LMX leads to higher satisfaction, commitment, empowerment, trust -issue: not everyone has these relationships, similarity of personalities and a mutual liking and respect are more powerful influences over how the relationship develops --employees can put in more effort by being open and seeking feedback --leaders can give employees more responsibility to demonstrate trust -in performance-oriented cultures, the relevant factor seems to be how the leader distributes rewards, whereas in people-oriented cultures, the leader treating people with dignity is more important -low-quality exchange: less positive work environment, can be less fair, leaders assess situation based on relationship -if leader not liked or abusive, better to low-quality, can afford to do one's job and not advance, not all leaders have influence to help those they like -important to be aware of due to unfairness and possible discrimination issues

antecedents of political behavior

individual antecedents -political skill: people's interpersonal style, including their ability to relate well to others, self-monitor, alter their reactions depending on the situation they are in, and inspire confidence and trust -individuals who are high in internal locus of control believe that they can make a difference in organizational outcomes -if a person is highly invested in an organization either financially or emotionally, they will be more likely to engage in political behavior because they care deeply about the fate of the organization -when a person expects that they will be successful in changing an outcome, they are more likely to engage in political behavior organizational antecedents -scarcity of resources -role ambiguity: allows individuals to negotiate and redefine their roles, this freedom can become a political process -performance evaluations and promotions: human resource practices can lead to greater political behavior, such as impression management, throughout the organization -democratic decision making

organizational politics

informal, unofficial, and sometimes behind-the-scenes efforts to sell ideas, influence an organization, increase power, or achieve other targeted objectives -effective politics isn't about winning at all costs but about maintaining relationships while achieving results -individuals ally themselves with like-minded others in an attempt to win the scarce resources -stirs up images of back-room dealing, manipulation, or hidden agendas for personal gain, self-serving -if employees think their organization is overly driven by politics, the employees are less committed to the organization, have lower job satisfaction, perform worse on the job, have higher levels of job anxiety, and have a higher incidence of depressed mood -provide equal access to information, model collaborative behavior, and demonstrate that political maneuvering will not be rewarded or tolerated

tools and techniques for greater decision-making

nominal group techniques - developed to help with group decision making by ensuring that all members participate fully, used to structure group meetings when members are grappling with problem solving or idea generation delphi technique - group process using written responses to a series of questionnaires instead of physically bringing individuals together to make a decision, questionnaires build off of each other until consensus met majority rule - decision-making rule in which each member of the group is given a single vote and the option receiving the greatest number of votes is selected consensus - reaching a general agreement and it is another decision-making rule that groups may use when the goal is to gain support for an idea or plan of action, when support is needed, inclusive group decision support systems - interactive computer-based systems that are able to combine communication and decision technologies to help groups make better decisions, knowledge management systems to share information decision trees - diagrams in which answers to yes or no questions lead decision makers to address additional questions until they reach the end of the tree, helps with framing bias

Big Five Personality Traits for Leadership

openness, conscientiousness, extraversion, agreeableness, neuroticism extraversion linked to leadership, dominant and sociable conscientiousness also linked - organized, take initiative, and demonstrate persistence in their endeavors openness to experience - demonstrate originality, creativity, and are open to trying new things—tend to emerge as leaders and also be quite effective agreeable less clear

conflict

people disagreeing

Integrity for Leadership

people who are effective as leaders tend to have a moral compass and demonstrate honesty and integrity lose trustworthiness without depends on situation which traits are important

commonly used influence tactics

resistance vs compliance vs commitment 1. rational persuasion: facts, data, and logical arguments to try to convince others that your point of view is the best alternative 2. inspirational appeals: seek to tap into our values, emotions, and beliefs to gain support for a request or course of action 3. consultation: influence agent's asking others for help in directly influencing or planning to influence another person or group, consultation is most effective in organizations and cultures that value democratic decision making 4. ingratiation: refers to different forms of making others feel good about themselves 5. personal appeal: helping another person because you like them and they asked for your help 6. exchange: give-and-take in which someone does something for you, and you do something for them in return 7. coalition tactics: group of individuals working together toward a common goal to influence others, unions 8. pressure: exerting undue influence on someone to do what you want or else something undesirable will occur 9. legitimating tactics: when the appeal is based on legitimate or position power

information power

similar to expert power but differs in its source information power is distinguished by access to specific information ex: knowing price differences

groupthink

tendency to avoid a critical evaluation of ideas the group favors eight steps: 1. Illusion of invulnerability is shared by most or all of the group members, which creates excessive optimism and encourages them to take extreme risks. 2. Collective rationalizations occur, in which members downplay negative information or warnings that might cause them to reconsider their assumptions. 3. An unquestioned belief in the group's inherent morality occurs, which may incline members to ignore ethical or moral consequences of their actions. 4. Stereotyped views of outgroups are seen when groups discount rivals' abilities to make effective responses. 5. Direct pressure is exerted on any members who express strong arguments against any of the group's stereotypes, illusions, or commitments. 6. Self-censorship occurs when members of the group minimize their own doubts and counterarguments. 7. Illusions of unanimity occur, based on self-censorship and direct pressure on the group. The lack of dissent is viewed as unanimity. 8. The emergence of self-appointed mindguards happens when one or more members protect the group from information that runs counter to the group's assumptions and course of action.

impression management

the attempt by people to get others to see them as they want to be seen do two things at once—build credibility and maintain authenticity nonverbal impression management: clothes you choose to wear and your demeanor, your smile, body art self-focused impression management: promoting and enhancing one's qualities to create a specific image in the eyes of the other person regarding one's qualities other-focused impression management: complimenting or praising the other party, doing favors to them, or conforming to their opinions to make oneself more attractive and likeable to the other party

transformational leadership

transformational leadership empowers group members to exceed expectations by rhetorically creating a vision that inspires and motivates members, see company before themselves transactional leadership: ensure that employees demonstrate the right behaviors and provide resources in exchange transformational leaders have: 1. charisma: create confidence in, commitment to, and admiration for the leader 2. inspirational motivation: come up with a vision that is inspiring to others 3. intellectual stimulation: challenge organizational norms and status quo, and they encourage employees to think creatively and work harder 4. individualized consideration: show personal care and concern for the well-being of their followers transactional leader have: 1. contingent rewards: rewarding employees for their accomplishments 2. active management by exception: leaving employees to do their jobs without interference, but at the same time proactively predicting potential problems and preventing them from occurring 3. limit passive management by exception: leaving employees alone, but in this method the manager waits until something goes wrong before coming to the rescue -transformational leadership is a very powerful influence over leader effectiveness, employee satisfaction, employee and team creativity -transactional leadership styles are also effective, and they also have positive influences over leader performance as well as employee attitudes -use of both the best

planning and executing change effectively

unfreezing --> making sure that organizational members are ready for and receptive to change -create vision for change -communicate a plan for change -develop a sense of urgency -build a coalition -provide support -allow employees to participate execute --> executing the planned changes -continue to provide support -create small wins -eliminate obstacles refreezing --> ensuring that change becomes permanent and the new habits, rules, or procedures become the norm -publicize success -build on prior change -reward change adoption -make change a part of organizational culture

direction of influence

upward: ability to influence your boss and others in positions higher than yours -by helping higher-ups, you become more credible and gain more power -higher-ups often need lower employees for information -can help in interview process downward: ability to influence employees lower than you, best achieved through an inspiring vision -inspiring vision builds buy-in and gets people moving in the same direction -bosses who like their employees are less likely to interpret resistance as a problem peer influence: peers need to be willing to influence each other without being destructively competitive -rational persuasion is the most frequently used influence tactic

ethics and negotiation

use of deception seems to increase as negotiators have individualistic, as opposed to cooperative, motives hardball tactics should not be used because the negotiation is likely not to be the last time you will interact with the other party be honest, keep promises, treat people well

Example for Productive Conflict: Amazon

want conflict to ensure they make the best decisions intense work environment conflict oriented leadership style