MNGT 301 Exam 3 (Ch. 11, 12, 14, 15)

The changing social contract between organization and employee

Old social contract-the employee could contribute ability, education, loyalty, and commitment and expect in return that the company would provide wages and benefits, work, advancement, and training throughout the employee's working life New Social contract-In a sense, companies and employees become allies helping one another grow stronger. Companies today expect and encourage employees to take control of their own careers, but in successful organizations managers and employees work together to actively create opportunities that meet the needs of the organization at the same time they give employees the chance to develop their skills and advance their careers. Employees help the company become more adaptable, while the company helps the employee become more employable. Many young people don't have any desire to stay with one company throughout their careers. They like the expectations of responsibility, learning, growth, and mobility embedded in the new social contract The new contract is based on the concept of employability rather than lifetime employment. Individuals are responsible for developing their own skills and abilities and demonstrating their value to the organization. The employer, in turn, invests in creative training and development opportunities so that people will be more employable when the company no longer needs their services. This means offering challenging work assignments, opportunities to participate in decision making, and access to information and resources.

Job Specification

Outlines the knowledge, skills, education, physical abilities, and other characteristics needed to perform a specific job adequately.

Promotion from within

Promotions provide people more challenging assignments, prescribe new responsibilities, and help employees grow by expanding and developing their abilities.

New-venture fund

Provides resources from which individuals and groups can draw to develop new ideas, products, or businesses.

Affirmative Action

Requires that employers take positive steps to guarantee equal employment opportunities for people within protected groups. (Positive Discrimination)

Why do people resist change?

Resistance to change is one explanation for why implementing change is so difficult. People resist change for several reasons, and understanding the reasons is a good start toward knowing how to bring about needed change in organizations. Self-interest-People typically resist a change they believe conflicts with their self-interests. A proposed change in job design, structure, or technology may increase employees' workload, for example, or cause a real or perceived loss of power, prestige, pay, or benefits. Lack of understanding and trust-Employees often distrust the intentions behind a change or do not understand the intended purpose of a change. If previous working relationships with a manager or promoter of an idea have been negative, resistance may occur. Uncertainty-is lack of information about future events. It represents a fear of the unknown. It is especially threatening for employees who have a low tolerance for change and fear anything out of the ordinary. They do not know how a change will affect them, and they worry about whether they will be able to meet the demands of a new procedure or technology. Different Assessments and Goals-that people who will be affected by a change or innovation may assess the situation differently from managers or promoters of a new idea. Critics frequently voice legitimate disagreements over the proposed benefits of a change. Managers in each department pursue different goals, and an innovation may detract from performance and goal achievement for some departments.

OD consultants use a variety of specialized techniques to help meet their goals. Three of the most popular and effective are the following:

Team Building-An organization development (OD) intervention that enhances cohesiveness by helping groups of people learn to work together as a team. Survey Feedback-Where organization development (OD) change agents survey employees to gather their opinions regarding corporate values, leadership, participation, cohesiveness, and other aspects of the organization, then meet with small groups to share the results and brainstorm solutions to problems identified by the results. Large-group intervention-An organization development (OD) approach that brings together people from different parts of the organization (and often including outside stakeholders) to discuss problems or opportunities and plan for change. A large-group intervention might involve 50 to 500 people and last several days. The idea is to include everyone who has a stake in the change, gather perspectives from all parts of the system, and enable people to create a collective future through sustained, guided dialogue.

Online Checks

The Internet also gives recruiters and hiring managers a new way to search for a candidate's criminal record, credit history, and other indications of honesty, integrity, and stability. Moreover, many companies want to see what a candidate has to say about him or herself on blogs and social networking sites to gauge whether the person would be a good fit with the organization.

Organizational change

The adoption of a new idea or behavior by an organization.

Authoritarianism

The belief that power and status differences should exist within an organization. Individuals high in authoritarianism tend to be concerned with power and toughness, obey recognized authority above them, stick to conventional values, critically judge others, and oppose the use of subjective feelings. A person high in authoritarianism is typically concerned with power and status, obeys established authority, and sticks to conventional values The trend toward empowerment and shifts in expectations among younger employees for more equitable relationships contribute to a decline in strict authoritarianism in many organizations.

Human Resource Management (HRM)

The design and application of formal systems to ensure the effective and efficient use of human talent to accomplish organizational goals.

Human Resource Planning

The forecasting of human resource needs and the projected matching of individuals with anticipated job vacancies.

The Role and Value of Human Capital Investments

The framework begins at the bottom (level 3) by assessing internal processes such as workforce planning, career development, performance appraisal, and so forth. Managers use these activities to increase human capital capabilities that drive higher performance in key areas such as innovation or customer service (level 2). Improvements in key performance areas, in turn, lead to improved business results (level 1).

Creativity

The generation of novel ideas that may meet perceived needs or respond to opportunities for the organization. Creative people often are known for their originality, open-mindedness, curiosity, focused approach to problem solving, persistence, relaxed and playful attitude, and receptiveness to new ideas. Creativity can also be designed into organizations. Most companies want more creative employees and often seek to hire creative individuals. However, the individual is only part of the story, and each of us has some potential for creativity. Managers are responsible for creating a work environment that allows creativity to flourish. Creative organizations are loosely structured. People find themselves in a situation of ambiguity, assignments are vague, territories overlap, tasks are loosely defined, and much work is done by teams. Managers in creative companies embrace risk and experimentation. They involve employees in a varied range of projects, so that people are not stuck in the rhythm of routine jobs, and they drive out the fear of making mistakes that can inhibit creative thinking.

Equal Employment Opportunity (EEO)

The point of the laws is to stop discriminatory practices that are unfair to specific groups and to define enforcement agencies for these laws. EEO legislation attempts to balance the pay given to men and women; provide employment opportunities without regard to race, religion, national origin, and gender; ensure fair treatment for employees of all ages; and avoid discrimination against disabled individuals.

Selection

The process of assessing the skills, abilities, and other attributes of applicants in an attempt to determine the fit between the job and each applicant's characteristics.

Performance appraisal

The process of observing and evaluating an employee's performance, recording the assessment, and providing feedback. Managers give feedback and praise concerning the acceptable elements of the employee's performance and also describe performance areas that need improvement. One of the biggest talent management mistakes, according to management expert Ram Charan, is the failure to provide candid performance assessments that focus on development needs.

Personality

The set of characteristics that underlie a relatively stable pattern of behavior in response to ideas, objects, or people in the environment.

Job Analysis

The systematic process of gathering and interpreting information about the essential duties, tasks, and responsibilities of a job.

Self-Serving Bias

The tendency to overestimate the contribution of internal factors to one's successes and the contribution of external factors to one's failures. means that people give themselves too much credit when they do well and give external forces too much blame when they fail.

OD Steps for changing people's attitudes and behavior.

Unfreezing-The stage of organization development (OD) in which people are made aware of problems and the need for change. This stage creates the motivation for people to change their attitudes and behaviors. Unfreezing may begin when managers present information that shows discrepancies between desired behaviors or performance and the current state of affairs. The unfreezing stage is often associated with diagnosis, which uses an outside expert called a change agent. Change Agent-An organization development (OD) specialist who contracts with an organization to help managers facilitate change. Changing-The "intervention" stage of organization development (OD), when change agents teach people new behaviors and skills and guide them in using them in the workplace. Refreezing-The stage of organization development (OD) where people have incorporated new values, attitudes, and behaviors into their everyday work and the changes become institutionalized in the culture.

360-Degree Feedback

Uses multiple raters, including self-rating, to appraise employee performance and guide development. 360-degree feedback can lead to a more valid assessment of performance as well as identify greater development opportunities for employees. Some companies use social networking-style systems to make 360-degree performance feedback a dynamic, ongoing process. For example, people can post short, Twitter-style questions about their performance of a particular task and get feedback from managers, peers, or anyone else the user selects.

Social learning

Using social media tools to network and learn informally. basically means learning informally from others by using social media tools, including mobile technologies, social media, wikis and blogs, virtual games, and so forth. The majority of organizational learning occurs through informal rather than formal channels, so managers are supporting the use of social media technology for learning in day-to-day work

Recruiting

activities or practices that define the characteristics of applicants to whom selection procedures are ultimately applied Activities or practices that define the desired characteristics of applicants for specific jobs; sometimes called talent acquisition. Internal recruiting-or promote-from-within policies, to fill their high-level positions.Footnote Internal recruiting has two major advantages: It is less costly than an external search, and it generates higher employee commitment, development, and satisfaction because it offers opportunities for career advancement to employees rather than outsiders External recruiting-recruiting newcomers from outside the organization—is advantageous. Applicants are provided by a variety of outside sources, including advertising, state employment services, online job boards and social media, private employment agencies (headhunters), job fairs, and employee referrals.

Pay-for-Performance

also called incentive pay, means tying at least part of compensation to employee effort and performance, whether it be through merit-based pay, bonuses, team incentives, or various gain-sharing or profit-sharing plans. With pay-for-performance, incentives are aligned with the behaviors needed to help the organization achieve its strategic goals. Employees have an incentive to make the company more efficient and profitable because if goals are not met, no bonuses are paid.

Skill-Based Pay

are increasingly popular in both large and small companies. Employees with higher skill levels receive higher pay than those with lower skill levels. Also called competency-based pay, skill-based pay systems encourage people to develop their skills and competencies, thus making them more valuable to the organization, as well as more employable if they leave their current jobs.

Big Data Analytics

big data analytics programs are now being used to make decisions about rewards. A company wondering how to cut attrition can gather data on turnover, promotions, job changes, benefits, work-life balance, and other factors for hundreds of thousands of workers and use predictive analytics to see what truly makes a difference. Does increasing pay keep people from leaving, or do other factors play a larger role?

The Equal Employment Opportunity Commission (EEOC)

created by the Civil Rights Act of 1964 initiates investigations in response to complaints concerning discrimination

Product Change

is a change in the organization's product or service outputs. A change in an organization's products or services, such as the Nike Fly knit Racer running shoe Product and service innovation is the primary way in which organizations adapt to changes in markets, technology, and competition.

Technology Change

is a change in the organization's production process—how the organization does its work. Technology changes are designed to make the production of a product or service more efficient.

Perception

is the cognitive process that people use to make sense out of the environment by selecting, organizing, and interpreting information from the environment. Because of individual differences in personality, values, interests, and so forth, people often "see" the same thing in different ways. A class that is boring to one student might be fascinating to another. One student might perceive an assignment to be challenging and stimulating, whereas another might find it a silly waste of time. We can think of perception as a step-by-step process, as shown in Exhibit 14.3. First, we observe information (sensory data) from the environment through our senses: taste, smell, hearing, sight, and touch. Next, our mind screens the data and will select only the items that we will process further. Third, we organize the selected data into meaningful patterns for interpretation and response. Most differences in perception among people at work are related to how they select and organize sensory data.

Halo Effect

occurs when the perceiver develops an overall impression of a person or situation based on one characteristic, either favorable or unfavorable. In other words, a halo blinds the perceiver to other characteristics that should be used in generating a more complete assessment.

Human Capital

refers to the economic value of the combined knowledge, experience, skills, and capabilities of employees. Human capital ranked far higher than assets such as technology, physical resources, and access to raw materials for success in a company

Job Evaluation

refers to the process of determining the value or worth of jobs within an organization through an examination of job content Job evaluation techniques enable managers to compare similar and dissimilar jobs and to determine internally equitable pay rates—that is, pay rates that employees believe are fair compared to those for other jobs in the organization.

Training and development programs

represent a planned effort by an organization to facilitate employees' learning of job-related skills and behaviors The practice these employees considered most important to their career development was working on high-stakes projects, while working on an inherited problem ranked the lowest. The general term training is typically used to refer to teaching people how to perform tasks related to their present jobs, while development means teaching people broader skills that are not only useful in their present jobs but also prepare them for greater responsibilities in future jobs.

Extreme Interviewing

to test job candidates' ability to handle problems, cope with change, think on their feet, and work well with others

Internal innovation contests

which are an increasingly popular way to realize product and service innovations (tournaments..)

Performance Review Ranking System

which is sometimes referred to as a forced ranking system, stack ranking, or "rank and yank."Footnote This method is increasingly controversial because it essentially evaluates employees by pitting them against one another. As most commonly used, these systems rank employees according to their relative performance: 20 percent would be placed in the top group of performers; 70 percent have to be ranked in the middle; and 10 percent are ranked at the bottom. The bottom tier are given a set period of time to improve their performance, and if they don't improve, they are fired. The idea behind the forced ranking of employees is that everyone will be motivated to improve performance. A performance ranking system forces reluctant managers to make difficult decisions and identify the best and worst performers, and proponents say it can create and sustain a high-performance culture in which people continuously improve. However, critics say the system often increases cutthroat competition among employees, discourages collaboration and teamwork, and harms morale.

Job-Based Pay

which means linking compensation to the specific tasks an employee performs. However, these systems present several problems. For one thing, job-based pay may fail to reward the type of learning behavior needed for the organization to adapt and survive in a turbulent environment. In addition, these systems reinforce an emphasis on organizational hierarchy and centralized decision making and control, which are inconsistent with the growing emphasis on employee participation and increased responsibility.

Self-Assessment

which uses self-inquiry and reflection to gain insights into oneself from the results of scores on self-assessment instruments such as those discussed throughout this text. By completing these assessments as honestly as possible, you can analyze your scores and increase your understanding of various aspects of yourself. also means regularly reflecting on our thoughts and feelings. Introspection—reflecting on our experiences, examining the effects of our actions and behavior, looking at the consequences for ourselves and others, and asking, "What can I learn?" is a valuable use of time that too many managers overlook.

Discrimination

(1) Making hiring and promotion decisions based on criteria that are not job-relevant. (2) When someone acts out their negative attitudes toward people who are the targets of their prejudice. for example, refusing to hire a black applicant for a job that he is qualified to fill and paying a woman a lower wage than a man for the same work are discriminatory acts

Ch.12

---

Ch.14

---

Ch.11

----

People Change

A change in the attitudes and behaviors of a few employees. concerns just a few employees, such as sending a handful of middle managers to a training course to improve their leadership skills

Job Description

A concise summary of the specific tasks and responsibilities of a position.

Non-directive Interview

A conversation where the interviewer asks broad, open-ended questions and permits the applicant to talk freely with minimal interruption, in an attempt to bring to light information, attitudes, and behavioral characteristics that might be concealed when answering structured questions.

Exit Interview

A discussion conducted with departing employees to determine reasons for their departure and learn about potential problems in the organization. interview conducted with departing employees to determine why they are leaving the company. The value of the exit interview is to provide an inexpensive way to learn about pockets of dissatisfaction within the organization and hence find ways to reduce future turnover

Matching Model

A human resources (HR) approach in which the organization and the individual attempt to match each other's needs, interests, and values.

Attributions

A judgment about what caused a person's behavior—characteristics of either the person or the situation. something about the person or something about the situation An internal attribution says that characteristics of the person led to the behavior. An external attribution says that something about the situation caused the person's behavior.

Culture Change

A major shift in the norms, values, and mindset of an entire organization.

Stereotyping

A performance evaluation error that occurs when a manager places an employee into a class or category based on one or a few traits or characteristics. for example, stereotyping an older worker as slower and more difficult to train.

behaviorally anchored rating scale (BARS)

A performance evaluation technique that relates an employee's performance to specific job-related incidents. By relating employee performance to specific incidents, raters can more accurately evaluate an employee's performance

Idea Champion

A person who sees the need for change and is passionately committed to making it happen is a person who sees the need for and champions productive change within the organization.

Organization development (OD)

A planned, systematic process of change that uses behavioral science techniques to improve an organization's health and effectiveness through its ability to cope with environmental changes, improve internal relationships, and increase learning and problem-solving capabilities. OD focuses on the human and social aspects of the organization and works to change attitudes and relationships among employees, helping to strengthen the organization's capacity for adaptation and renewal.

Job Satisfaction

A positive attitude toward one's job. reflects the degree to which a person finds fulfillment in his or her job In general, people experience job satisfaction when their work matches their needs and interests, when working conditions and rewards (such as pay) are satisfactory, when they like their coworkers, and when they have positive relationships with supervisors a recent survey by the Conference Board found that less than 50 percent of U.S. employees say they are satisfied at work Managers create the environment that determines whether employees have positive or negative feelings toward their jobs.

on-the-job training (OJT)

A process in which an experienced employee is asked to teach a new employee how to perform job duties. OJT is considered the fastest and most effective means of facilitating learning in the workplace.

Open Innovation

A process where people search for and commercialize innovative ideas beyond the boundaries of the organization. Successful companies often include customers, strategic partners, suppliers, and other outsiders directly in the product and service development process. means extending the search for and commercialization of new ideas beyond the boundaries of the organization and even beyond the boundaries of the industry, sharing knowledge and resources with other organizations and individuals outside the firm.

Wage and Salary Surveys

A questionnaire that shows what other organizations pay incumbents in jobs that match a sample of key jobs selected by the organization.

Application Form

A selection device that collects information about the applicant's education, previous work experience, and other background characteristics. One pitfall to be avoided is the inclusion of questions that are irrelevant to job success. In line with EEO guidelines, the application form should not ask questions that will create an adverse impact on protected groups unless the questions are clearly related to the job Some type of interview is used as a selection technique in almost every job category in nearly every organization. This is another area where the organization can get into legal trouble if the interviewer asks questions that violate EEO guidelines

Skunkworks

A separate informal, highly autonomous, and often secretive group that focuses on breakthrough ideas.

Innovation by acquisition

A strategy to obtain innovation by buying other companies, recognizing that the cutting edge of innovation often happens with young, small, entrepreneurial companies rather than inside the walls of established firms.

Machiavellianism

A tendency to direct one's behavior toward the acquisition of power and the manipulation of other people for personal gain; based on the ideas of Niccolò Machiavelli, a sixteenth-century Italian political philosopher. In loosely structured situations, high Machs actively take control, while low Machs accept the direction given by others. Low Machs thrive in highly structured situations, while high Machs perform in a detached, disinterested way. High Machs are particularly good in jobs that require bargaining skills or that involve substantial rewards for winning.

fundamental attribution error

A tendency to underestimate the influence of external factors on another person's accomplishments and to overestimate the influence of internal factors. Consider the case of someone being promoted to CEO. Employees, outsiders, and the media generally focus on the characteristics of the person that allowed him or her to achieve the promotion. In reality, however, the selection of that person might have been heavily influenced by external factors, such as business conditions creating a need for someone with a strong financial or marketing background at that particular time.

Employment Tests

A test given to employees to evaluate their abilities; can include cognitive ability tests, physical ability tests, personality inventories, and other assessments.

New-venture team

A unit separate from the mainstream organization that is responsible for initiating and developing innovations. New-venture teams give free rein to members' creativity because their separate facilities and location unleash people from the restrictions imposed by organizational rules and procedures. These teams typically are small, loosely structured, and flexible, reflecting the characteristics of creative organizations.

Compensation

All monetary payments and all non monetary goods or benefits used to reward employees. Over the past 15 years, most HR managers have used the term rewards or total rewards rather than compensation, to include a broad range of rewards such as wages and salaries, incentive payments, bonuses, and benefits such as health insurance, paid vacations, or other benefits Developing an effective reward system is an important part of HRM because it helps to attract and retain talented workers. In addition, a company's reward system has an impact on strategic performance.Footnote HR managers design the pay and benefits systems to fit company strategy and to provide compensation equity.

Crowdsourcing

An approach in which many people (sometimes hundreds of thousands of people) contribute to the innovation process via the Internet.

Internship

An arrangement whereby an intern, usually a high school or college student, exchanges his or her services for the opportunity to gain work experience and see whether a particular career is appealing.

Blind Spots

An attribute about a person that he or she is not aware of or doesn't recognize as a problem; this limits effectiveness and hinders career success. Seeking feedback to enhance self-awareness can improve performance and job satisfaction for both managers and employees. We all have illusions about ourselves, so we need help from others to get a clear picture of who we are.

Benefits

An effective rewards package requires more than money. Although salary is an important component, benefits are equally important. Organizations are required by law to provide some benefits, such as Social Security, unemployment compensation, and workers' compensation. Other types of benefits, such as vacations and things such as onsite fitness centers or educational reimbursements, are not required by law but are provided by organizations to attract and maintain an effective workforce.

perceptual distortions

An error in perceptual judgment that results from inaccuracies in any part of the perception process. One common perceptual error is stereotyping, the tendency to assign an individual to a group or broad category (e.g., female, black, elderly; or male, white, disabled) and then to attribute widely held generalizations about the group to the individual. As an example, someone meets a new colleague, sees that he is in a wheelchair, assigns him to the category "physically disabled," and attributes to this colleague generalizations that she believes about people with disabilities, which may include a belief that he is less able than other coworkers. Stereotyping prevents people from truly knowing those whom they classify in this way. In addition, negative stereotypes prevent talented people from advancing in an organization and fully contributing their talents to the organization's success.

Corporate University

An in-house training and development facility that offers broad-based learning opportunities for employees. and frequently for customers, suppliers, and strategic partners as well—throughout their careers.

Self-efficacy

An individual's strong belief that he or she can successfully accomplish a specific task or outcome.

Panel Interview

An interview in which the candidate meets with several interviewers who take turns asking questions.

Structured Interview

An interview that uses a set of standardized questions that are asked of every applicant so comparisons can be made easily.

Idea Incubator

An organizational program that provides a safe harbor where employees can generate and develop ideas without interference from company bureaucracy or politics.

Self-Awareness

Being conscious of the internal aspects of one's nature, such as personality traits, beliefs, emotions, attitudes, and perceptions, and appreciating how your patterns affect other people. Most management experts agree that a primary characteristic of effective leaders is that they know who they are and what they stand for. When managers deeply understand themselves, they remain grounded and constant. People know what to expect from them. As one employee put it, "it's like they have a stick down through the center of them that's rooted in the ground." Yet developing self-awareness is easier said than done.

Innovative HR practices

Blind hiring-Focuses managers on an applicant's job skills and performance rather than educational credentials, appearance, or prior experience. Employer brand-Similar to a product brand, except that rather than promoting a specific product, its aim is to make an organization seem like a highly desirable place to work. Fast Track hiring-filling open jobs in a matter of days or even hours. "The best candidates get snagged quickly," Acqui-hiring-When established companies such as Facebook, Google, Yahoo, LinkedIn, and Salesforce.com buy early-stage start-ups, often shutting them down, simply to acquire their engineering talent.

Trust

Considering how important trust is in any relationship, it is surprising how little attention many managers devote to building and maintaining trust in the workplace. Trust can make all the difference between an employee who is emotionally committed to the organization and one who is not. Once trust is undermined, everything else tends to unravel. Managers promote trust by being open and honest in their business dealings, keeping employees informed, giving them a say in decisions, providing the necessary training and other resources that enable them to succeed, treating them fairly, and offering rewards that they value.

Strategies for overcoming resistance and implementing change

Create a sense of urgency-Many people are not willing to change unless they perceive a problem or a crisis. A crisis or strong need for change lowers resistance. To effectively lead change, managers help people feel the need for change rather than just giving them facts and figures. People are much more likely to change their behavior when they both understand the rational reasons for doing so and see a picture of change that influences their feelings. A need for change-A disparity(great difference) between actual and desired performance. Force-field Analysis-A technique for determining which forces drive a proposed change and which forces restrain it. When a change is introduced, managers should analyze both the forces that drive change (problems and opportunities) and the forces that resist it (barriers to change). By selectively removing forces that restrain change, the driving forces will be strong enough to enable implementation Use Implementation Tactics-is to use specific tactics to overcome resistance and more smoothly put changes into action Implementation Tactics: Top Management Support-One survey found that 80 percent of companies that are successful innovators have top executives who frequently reinforce the importance of innovation both verbally and symbolically Communication and Education-are used when solid information about the change is needed by users and others who may resist implementation. Within organizations, education can be especially important when the change involves new technical knowledge or users are unfamiliar with the idea. Participation-involves users and potential resisters in designing the change. This approach is time consuming, but it pays off because users understand and become committed to the change. Participation also helps managers determine potential problems and understand the differences in perceptions of change among employees. Negotiation-is a more formal means of achieving cooperation. Negotiation uses formal bargaining to win acceptance and approval of a desired change. Coercion-means that managers use their formal power to force employees to change. Resisters are told to accept the change or lose rewards (or even their jobs).

Reverse innovation

Creating innovative, low-cost products for emerging markets and then quickly and inexpensively repackaging them for sale in developed countries.

Locus of Control

Defines whether an individual places the primary responsibility for his successes and failures within himself or on outside forces. Some people believe that their own actions strongly influence what happens to them. They feel in control of their own fate. These individuals have a high internal locus of control. Other people believe that events in their lives occur because of chance, luck, or outside people and events. They feel more like pawns of their fate. These individuals have a high external locus of control. People with an internal locus of control are easier to motivate because they believe that rewards are the result of their behavior. They are better able to handle complex information and problem solving, are more achievement oriented, but are also more independent and therefore more difficult to manage. By contrast, people with an external locus of control are harder to motivate, less involved in their jobs, and more likely to blame others when faced with a poor performance evaluation, but they are also more compliant and conforming and, therefore, easier to manage.

Termination

Despite the best efforts of line managers and HRM professionals, the organization will lose employees. Some will retire, others will depart voluntarily for other jobs, and still others will be forced out through mergers and cutbacks or for poor performance. The value of termination for maintaining an effective workforce is twofold. First, employees who are poor performers can be dismissed. Productive employees often resent disruptive, low-performing employees who are allowed to stay with the company and receive pay and benefits comparable to theirs. Second, managers can use exit interviews as a valuable HRM tool, regardless of whether the employee leaves voluntarily or is forced out.

Big Five personality factors

Dimensions that describe an individual's extroversion, agreeableness, conscientiousness, emotional stability, and openness to experience. Extroversion-The degree to which a person is outgoing, sociable, assertive, and comfortable with interpersonal relationships Agreeableness-The degree to which a person is able to get along with others by being good-natured, likable, cooperative, forgiving, understanding, and trusting Conscientiousness-The degree to which a person is focused on a few goals, thus behaving in ways that are responsible, dependable, persistent, and achievement oriented. Emotional Stability-The degree to which a person is calm, enthusiastic, and self-confident, rather than tense, depressed, moody, or insecure. Openness to experience-The degree to which a person has a broad range of interests and is imaginative, creative, artistically sensitive, and willing to consider new ideas. Having a moderate-to-high degree of each of the Big Five personality factors is considered desirable for a wide range of employees, but this isn't always a key to success. For example, having an outgoing, sociable personality (extroversion) is considered desirable for managers, but many successful leaders, including Larry Page of Google, Apple CEO Tim Cook, 2016 presidential candidate Hillary Clinton, and screenwriter and director Steven Spielberg, are introverts, people who may become drained by social encounters and need time alone to reflect and recharge their batteries. One study found that four in ten top executives test out to be introverts.

Remember This

Every organization must change and innovate to survive. Organizational change is defined as the adoption of a new idea or behavior by an organization. Disruptive innovation refers to innovations in products, services, or processes that radically change competition in an industry, such as the advent of streaming video or online college courses. An ambidextrous approach means incorporating structures and processes that are appropriate for both the creative impulse and the systematic implementation of innovations. Visa, Target, American Eagle, and other large companies have built separate innovation labs to promote an ambidextrous approach.

Examples

Exploration-Creativity, bottom-up approach, internal contests, idea incubators Cooperation-Horizontal coordination mechanisms, customers and partners, and open innovation Innovation Roles-Idea champions, new venture teams, skunkworks, new venture fund All of these three approaches lead to new products, services, and technologies

Three critical innovation strategies for changing products and technologies

Exploration-involves designing the organization to encourage creativity and the initiation of new ideas. Cooperation-refers to creating conditions and systems to facilitate internal and external coordination and knowledge sharing. Innovation Roles-means that managers put in place processes and structures to ensure that new ideas are carried forward for acceptance and implementation.

Three primary goals of HRM

Find the right people-HRM planning, job analysis, forecasting, recruiting, selecting Manage Talent-Training, development, appraisal Maintain an effective workforce-wages and salary, benefits, labor relations, terminations

The strategic approach to HRM recognizes three key elements:

First, all managers are involved in managing human resources. Second, employees are viewed as assets. No strategy can be implemented effectively without the right people to put it into action. Employees, not buildings and machinery, give a company its competitive edge. Third, HRM is a matching process, integrating the organization's strategy and goals with the correct approach to managing human capital.

Self-confidence

General assurance in one's own ideas, judgment, and capabilities. Self-efficacy is one dimension of self-confidence Personality traits, emotions, and characteristics such as self-confidence and self-efficacy influence how people behave, including how they handle work situations and relate to others.

Realistic job previews (RJPs)

Gives applicants all pertinent and realistic information, both positive and negative, about a job and the organization. RJPs contribute to greater employee satisfaction and lower turnover because they facilitate matching individuals, jobs, and organizations. People have a better basis on which to determine their suitability to the organization and "self-select" into or out of positions based on full information.

Ambidextrous approach

Incorporating structures and processes that are appropriate for both the creative impulse and the systematic implementation of innovations. With an ambidextrous approach, managers encourage flexibility and freedom to innovate and propose new ideas with creative departments.

Disruptive innovation

Innovations in products, services, or processes that radically change competition in an industry, such as the advent of streaming video or e-books. Refers to innovations in products or services that typically start small and end up completely replacing an existing product or service technology for producers and consumers.

Bottom-up approach

Involves encouraging the flow of ideas from lower levels and making sure that they get heard and acted upon by top executives.

Organizational commitment

Loyalty to and engagement with one's work organization. An employee with a high degree of organizational commitment is likely to say we when talking about the company. Such a person likes being a part of the organization and tries to contribute to its success.

Social Media

Managers do much of their recruiting today via the Internet, including social media sites such as LinkedIn, Facebook, and Twitter.

Horizontal linkage model

Means that several departments, such as marketing, research, and manufacturing, work closely together to develop new products. The horizontal linkage model is increasingly important in a high-pressure business environment that requires rapidly developing and commercializing products and services. Speed is a pivotal strategic weapon in the global marketplace.

OD can help managers address at least three types of current problems:

Mergers/acquisitions-The disappointing financial results of many mergers and acquisitions are caused by the failure of executives to determine whether the administrative style and corporate culture of the two companies fit. Organizational decline/revitalization-Organizations undergoing a period of decline and revitalization experience a variety of problems, including a low level of trust, lack of innovation, high turnover, and high levels of conflict and stress. The period of transition requires the opposite, including confronting stress, creating open communication, and fostering creative innovation to emerge with high levels of productivity Conflict management-Conflict can occur at any time and place within a healthy organization OD can be used to solve the types of problems just described, as well as many others

Halo Effect

Occurs when a manager gives an employee the same rating on all dimensions of the job, even though performance may be good on some dimensions and poor on others.