BNAD302 Exam 2

Group Problem-Solving Techniques Do's

Use active listening skills. Involve as many members as possible Seek out the reasons behind arguments and dig for the facts

VRIO:

Valuable, Rare, Costly to imitate, Organized to exploit these.

General Decision-Making Styles

Value Orientation. Tolerance for Ambiguity.

Organizational Culture

Values - what people think is important Beliefs - why things happen the way they do Norms - how people are expected to behave

How Workers Organize

When workers decide to form a union, they first must get other workers to sign an authorized card, which designates a certain union as the worker's bargaining agent.

Division of labor

Work specialization; having discrete parts of a task done by different people

Hybrid

referrals - tap into existing employees' social networks to fill open positions with outside applicants - and Boomerangs - former employees who return to the organization

Decision-Making Style:

reflects the combination of how an individual perceives and responds to information.

Value Orientation:

reflects the extent to which a person focuses on either task and technical concerns or on people and social concerns when making decisions.

Least threatening: adaptive change

reintroduction of a familiar practice

Performance Management

set of processes and managerial behaviors that involve defining, monitoring, measuring, evaluating, and providing consequences for performance expectations

Satisficing model

Because of constraints, managers don't make an exhaustive search for the best alternative. Instead, managers seek alternatives until they find one that is satisfactory, not optimal.

How We Learn about Culture

Behavioral Symbols Physical Symbols Verbal Symbols

Analytical (High TA; Task Concerns)

Considers more information and alternatives, tends to be careful and take longer to make decisions; tends to overanalyze and respond well to new or uncertain situations.

Sexual Harassment

Consists of unwanted sexual attention that creates an adverse work environment

Performance Appraisal

Consists of: assessing an employee's performance providing feedback

Nondisparagement Agreement

Contract that prohibits one party from criticizing the other.

What Can OD be used for?

Improving individual, team, and organizational performance: an OD expert or "executive coach" can help advise on how to improve relationships within the organization.

informal appraisals

Conducted on an unscheduled basis and consists of less rigorous indications of employee performance

Major Features of Organizations: 4 Proposed by Edgar Schein

Common Purpose Coordinated Effort Division of Labor Hierarchy of Authority

The Fair Labor Standards Act

1938 (FLSA) established minimum living standards for workers engaged in interstate commerce, including provision of a federal minimum wage and a maximum work week before overtime must be paid, along with banning child labor.

Step 2: Assess the Current Reality

4 Tools: SWOT Analysis VRIO Forecasting Benchmarking

The Strategic Management Process

1. Establish the mission vision and values statement. 2. Assess the current reality. 3. Formulate the grand strategy. 4. Implement the strategy. 5. Maintain strategic control.

3 Key Principles of Strategic Positioning

1. Strategy is the creation of a unique and valuable position. 2. Strategy requires trade-offs in competing 3. Strategy involves creating a "fit" among activities

Seven Implementation Principles of Evidence-Based Management

1. Treat your organization as an unfinished prototype. 2. Don't brag, just use facts. 3. See yourself and your organization as outsiders do. 4. Evidence-based management is not just for senior executives. 5. Like everything else, you still need to sell it. 6. If all else fails, slow the spread of bad practice. 7. The best diagnostic question: What happens when people fail?

Nine Common Decision-Making Biases

1.The Availability Bias - using only information more readily available. 2. The Representativeness Bias - faulty generalizing from a small sample or a single event 3. The confirmation Bias - seeking information to support your point of view 4. The Sunk-Cost Bias - money already spent seems to justify continuing 5. The Anchoring and Adjustment Bias - being influenced by an initial figure 6. The Overconfidence Bias - blind to our own business 7. The Hindsight Bias - The I-Knew-It-All-Along Effect 8. The Framing Bias - Shaping the way a problem is presented 9. The Escalation of Commitment Bias - feeling overly invested in a decision 10. The Categorical Thinking Bias - sorting information into buckets

The Social Security Act

1935 established the U.S retirement system

Grievance

A complaint by an employee that management has violated the terms of the labor-management agreement

Disadvantages of Group Decision Making

A few people dominant or intimidate Groupthink Satisficing Goal displacement

Organization structure

A formal system of task and reporting relationships that coordinates and motivates an organization's members so that they can work together to achieve the organization's goals.

Benchmarking

A process by which a company compares its performance with that of high-performing organizations.

Bullying

Abusive physical, psychological, verbal, or nonverbal behavior that is threatening, humiliating, or intimidating.

Affirmative Action

Active recruitment from groups traditionally discriminated against Elimination of prejudicial questions in interviews Establishment of minority hiring goals

Preventing Groupthink

Allow critical evaluation Allow other (fresh) perspectives Reflect before entering a group discussion

Hubris

An extreme and inflated sense of pride, certainty, and confidence

Background Information

Application forms Resumes Background Checks

Five Steps in the Learning Development Process

Assessment Objectives Selective Implementation Evaluation

Nonrational Decision Making

Assumes that decision making is nearly always uncertain and risky, making it difficult for managers to make optimal decisions

Talent Management:

Attitudes: workers singled out as "stars" experience increased job satisfaction, engagement, and commitment to the organization. Behaviors: employees identified as high-potential respond with greater effort, better job performance, and lower turnover. Cognitions: workers respond to their organizations' elevated perceptions with higher self-efficacy and increased feelings of fulfillment Geared toward enhancing and leveraging the human and social capital of specific individuals in the organization.

Types of AI

Automated business processes. Data analysis Engaging customers and employees

Group Problem-Solving Techniques Don'ts

Avoid horse trading and making an agreement simply to not rock the boat Don't try to achieve consensus by putting questions to a vote

3 Types of Selection Tools

Background Information interviews Employment Tests

More Group Problem-Solving Techniques

Brainstorming Devil's Advocacy The Dialectic Method Project Post-Mortems

formal appraisals

Conducted at specific times throughout the year and based on performance measures that have been established in advance

Groupthink

Cohesiveness isn't always good. When it results in groupthink, group or team members are friendly and tight-knit but unable to think "outside the box." The results of groupthink can include failure to consider new information and a loss of new ideas.

Four Types of Organizational Culture

Clan Adhocracy Market Hierarchy

Coordinated effort

Coordination of individual efforts into a group or organization-wide effort

Step 3: Formulate Corporate, Business, and Functional Strategies

Corporate Level Strategy: Growth Strategy: Involves expansion, as in sales revenue, market share, number of employees, or number of customers. Can involve following an "Innovation Strategy". Stability Strategy: Involves little or no significant change. Defensive Strategy: Involves reduction in the organization's efforts. Diversification Strategy Diversification: The strategy of moving into new lines of business.

Strategic Management Takes Place at 3 Levels

Corporate-Level Business-Level Functional-Level

Porter's 4 Competitive Strategies

Cost-Leadership Strategy: keep the costs, and hence prices, or a product or service below those of competitors and target a wide market. Cost-Focus Strategy: Keep the costs of a product below those of competitors and to target a narrow market. Differentiation Strategy: Offers products that are of unique and superior value compared to those of competitors but to target a wide market. Focused-Differentiation Strategy: Offers products that are unique and superior value compared to those of competitors and to target a narrow market.

Rational Decision Making Model

Explains how manager should make decisions Assumes managers will make logical decisions that will be optimum in furthering the organization's best interests. Also called the classical model of decision making

Bounded rationality

Developed by Herbert Simon. Suggests that the ability of decision makers to be rational is limited by numerous constraints. Complexity, time and money, cognitive capacity.

Decision-Making Styles

Directive (Low TA; Task Concerns) Analytical (High TA; Task Concerns) Conceptual (High TA; People Concerns) Behavioral (Low TA; People Concerns)

National Labor Relations Board

Enforces procedures whereby employees may vote for a union and collective bargaining

Execution Roadblocks

Execution doesn't always go smoothly because managers may face obstacles to strategic implementation. Overcoming roadblocks in the C-suite. Overcoming roadblocks down the hierarchy.

Market culture

Focused on the external environment Values stability and control; Profits over employee satisfaction Driven by competition and a strong desire to deliver results

Forecasting

Forecast: "a vision or projection of the future" Trend Analysis: "hypothetical extension of a past series of events into the future" (ex. Time-series forecasting) Contingency Planning: "creation of alternative hypothetical but equally likely future conditions." Also called scenario planning and analysis.

12 Ways to Try and Change Organizational Culture

Formal Statements: mission, vision, values Language, slogans, sayings, and acronyms Rites and rituals Stories, legends, and myths Leader reactions to crises Role modeling, training, and coaching Through physical design Rewards, titles, promotions, and bonuses Organizational goals and performance criteria Measurable and controllable activities Organizational structure Organizational systems and procedures

Advantages of Group Decision Making

Greater pool of knowledge Different perspectives Intellectual stimulation Better understanding of decision rationale Deeper commitment to the decision

High Performance Work Systems:

HPWS is an approach to SHRM that deploys bundles of internally consistent HR practices in order to improve employee ability, motivation, and opportunities across the entire organization.

Adhocracy culture

Has an external focus Risk-taking; Values flexibility Adaptable, creative, and quick to respond to changes in the marketplace

Clan culture

Has an internal (employee) focus Values flexibility rather than stability Encourages collaboration among employees

Hierarchy culture

Has an internal focus values stability and control over flexibility formulized, structured work environment

Ten Reasons Employees Resist Change

Individual's predisposition toward change Surprise and fear of the unknown Climate of mistrust Fear of failure Loss of status or job security Peer pressure Disruption of cultural traditions or group relationships Personality conflicts Lack of tact or poor timing Non-reinforcing reward system

What is Person-Organization Fit?

Individuals have preferences for certain cultural attributes (e.g., beliefs, values, behavior).

3 Recruiting approaches

Internal External Hybrid

The Strategic HRM Process

Internal Fit External Fit

Intuition Model

Intuition is making a choice without the use of conscious thought or logical inference.

Proactive (or planned) change

Involves making carefully thought-out changes in anticipation of possible or expected problems or opportunities

Types of Learning and Development

L&D for Facts L&D for Skills On-the job training Off-the job training

Three types of change

Least threatening: adaptive change. Somewhat threatening: Innovative change. Very threatening: radically innovative change

Three Levels of Organizational Culture

Level 1: Observable Artifacts: Physical Manifestations of Culture Level 2: Espoused Values: Explicitly Stated Values and Norms Level 3: Basic Assumptions: Core Values of the Organization

Techniques to Promote Cultural Change

Make clear the desirable/acceptable values, norms, behaviors Engage in intentional management actions Formal communication Face-to-face meetings with employees "Walk the Talk" Identify and deploy cultural artifacts (behavioral, physical, verbal) Review/introduce new training, socialization, mentoring programs Reward desirable employee behaviors, punish undesirable ones Replace executives/supervisors/managers (bring in new blood) Break up cliques: transfer the "old guard" employees Hire outsiders to implement/oversee changes (e.g. critics, activists)

Reactive Change

Making changes in response to problems or opportunities as they arise

Step 1: Mission, Vision, and Value Statements

Mission Statement: Expresses the purpose of the organization. What is our reason for being? Why are we here? Vision Statement: It is a clear sense of the future and the actions needed to get there. What do we want to become? Where do we want to go? Values Statement: What the company stands for: its core priorities, the values its employees embody, and what its products contribute to the world. What values do we want to emphasize?

Collective bargaining

Negotiations between management and employees about disputes over compensation, benefits, working conditions, and job security

Two-tier wage contracts

New employees are paid less or receive lesser benefits than veteran employees

The Third Core Process

Operations

Labor Unions

Organizations of employees formed to protect and advance their members' interests by bargaining with management over job-related issues.

Who Should Make Performance Appraisals?

Peers and subordinates? Customers and clients? Self-Appraisal? Managers? Your Performance

The First Core Process

People

Directive (Low TA; Task Concerns)

People are efficient, logical, practical, and systematic in their approach to solving problems. Action oriented, decisive, and like to focus on facts, BUT tends to be autocratic and focus on the short run.

Discrimination:

People are hired or promoted - or denied hiring or promotion - for reasons not relevant to the job.

Data Analytics

Perhaps the purest application of evidence-based management is the use of data analytics, which is the process of analyzing raw data sets in order to make conclusions about the information they contain.

Porter's 5 Competitive Forces

Porter contends that business-level strategies originate in five primary competitive forces in the firm's environment. threat of new entrants. bargaining power of suppliers. bargaining power of buyers. threat of substitute products or services. rivalry among competitors.

Business-Level Strategy

Porter's 5 Competitive Forces. Porter's 4 Competitive Strategies.

Mediation

Process in which a neutral third party, a mediator, listens to both sides in a dispute, makes suggestions, and encourages them to agree on a solution.

Arbitration

Process in which a neutral third party, an arbitrator, listens to both parties in a dispute and makes a decision that the parties have agreed will be binding.

3 Types of Diversification

Related Unrelated Vertical Integration

Symptoms of Groupthink

Sense of invulnerability Rationalization Dominant members Illusion of unanimity and peer pressure "The wisdom of crowds" - people censor themselves

Organization development (OD)

Set of techniques for implementing planned change to make people and organizations more effective.

Performance Management

Step 1: Define Performance Step 2: Monitor and Evaluate Performance Step 3: Review Performance Step 4: Provide Consequences

The 4 Steps in Rational Decision Making

Step 1: Identify the problem or opportunity - the decision is how to change from current to desirable Step 2: Think up alternative solutions - both the obvious and the creative Step 3: Evaluate alternatives and select a solution - is it ethical, feasible, and effective Step 4: Implement and evaluate the solution chosen - plan carefully; be sensitive to those affected

Step 5: Maintaining Strategic Control

Strategic Control: "Monitoring the execution of strategy and making adjustments, if necessary." Engage people. You need to actively engage people in clarifying what your group hopes to accomplish and how you will accomplish it. Keep it simple. Keep your planning simple, unless there's a good reason to make it more complex. Stay focused. Stay focused on the important things. Keep moving. Keep moving toward your vision of the future, adjusting your plans as you learn what works.

VRIO Framework

To be a useful resource require three things: It must be Valuable (e.g. there must be some Demand for it) It must be somewhat Rare (e.g. Scarcity) It must be Exploitable by the Organization (e.g. must be able to Appropriate the value from that resource)

The Second Core Process

Strategy

Step 4: Strategic Implementation

Strategy Implementation: "Putting strategic plans into effect." To implement strategy, higher-level corporate- and business-level strategies flow down to the functional strategy, similar to goal cascading. Functional Strategy: "a plan of action by each functional area of the organization to support higher-level strategies." Typical functional areas include marketing, finance, human resources, operation, information technology, and distribution. Once functional strategies are formulated... execution. Consists of using questioning, analysis, and follow-through in order to mesh strategy with reality, align people with goals, and achieve results promised.

Strategic Planning #3

Strategy involves creating a "fit" among activities (ex. Vanguard Guard; not like Continental Lite).

Strategic Positioning #1

Strategy is the creation of a unique and valuable position. It emerges from 3 sources: Few needs, many customers (ex. Corcs). Broad needs, few customers (ex. Buy Buy Baby). Broad needs, many customers (ex. Allegiant Airlines).

Strategic Positioning #2

Strategy requires trade-offs in competing. Choose both what to do, and what NOT to do (ex. Neutrogena)

SWOT Analysis:

Strengths, Weaknesses, Opportunities, and Threats.

Behavioral (Low TA; People Concerns)

Supportive, receptive to suggestions, show warmth; avoids conflict and is concerned with others. Prefer verbal to written information; opinions are openly exchanged Can lead to wishy-washy decision making; has trouble saying no

How Employees Learn Culture

Symbols: an object, an act, a quality, or event that conveys meaning to others. Stories: narrative based on true events repeated - and sometimes embellished upon - to emphasize a particular value Heroes: person whose accomplishments embody the values of the organization Rites and rituals: activities and ceremonies that celebrate important occasions and accomplishments Organizational socialization: the process by which people learn the values, norms, and required behaviors of an organization

Conceptual (High TA; People Concerns)

Takes a broad perspective to problem solving Likes to consider many options and future possibilities; relies on intuition, and adopts a long-term perspective Can foster indecisiveness

Three Core Processes of Business: People, Strategy, and Operations

The First Core Process - People. The Second Core Process - Strategy. The Third Core Process - Operations.

Base Pay

wage or salary pay

Hierarchy of authority

The chain of command; control mechanism for making sure the right people do the right things at the right time

Human capital

The economic or productive potential of employee knowledge, experience, and actions.

Social capital

The economic or productive potential of strong, trusting, and cooperative relationships.

Employment at Will

The governing principle that means anyone can be dismissed at any time for any reason at all, or for no reason.

Common Purpose:

The means for unifying members; gives everyone an understanding of the organization's reason for being

Organizational Culture

The set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various

Givebacks

The union agrees to give up previous wage or benefit gains in return for something else, something else, such as a no-layoff policy.

The Organization Chart

The vertical hierarchy of authority The horizontal specialization

Cost-of-living adjustment (COLA)

This is a clause during the period of the contract that ties future wage increases to increases in the cost of living.

Aligning Culture, Structure, and Human Resource (HR) Practices to Support Strategy

You can think of an organization's culture, structure, and HR practices as three strands in a single rope. These strands must be tightly woven together to drive successful strategic execution.

Change agent

a consultant with a background in behavioral sciences who can be a catalyst in helping organizations deal with old problems in new ways

Benefits

additional non monetary forms of compensation; e.g., Health insurance, dental insurance, life insurance, disability protection, retirement plans, holidays off, sick and vacation days, recreation options, health club memberships, family leave, discounts on company merchandise, counseling, credit unions, legal advice, and education reimbursement. are no small part of an organization's costs.

Talent Management Def.

an approach to SHRM that matches high-potential employees with an organization's most strategically valuable positions.

structured interview

asking each applicant the same question and comparing their responses to a standardized set of answers - situational - behavioral

External

attracting job applicants from the outside (ex. Social Media, online job postings, school partnerships.)

The vertical hierarchy of authority

who reports to whom

The horizontal specialization

who specializes in what work

Process innovation

change in the way a product is conceived, manufactured, or disseminated

Product innovation

changes in the appearance or performance of a product or the creation of a new one

The horizontal design:

eliminating functional barriers to solve problems

Related Diversification

expansion into businesses that are related to the company's existing portfolio of products or services.

Unrelated Diversification

expansion into businesses that are unrelated to the company's existing portfolio products or services.

Vertical Integration

expansion into businesses that provide the supplies it needs to make its products or that distribute and sell its products.

To help increase performance, managers should offer:

formal and informal appraisals

Compensation

has 3 parts - wages or salaries as base pay, incentives, and benefits

Designs that open boundaries between organizations:

hollow, modular, and virtual structures

Tolerance for Ambiguity:

indicated the extent to which a person has a high need for structure or control in his or her life.

unstructured interview

information is gathered about job candidates without the use of a fixed set of questions or a systematic scoring procedure. Involves asking probing questions to find out what the applicant is like

Somewhat threatening: Innovative change

introduction of a practice that is new to the organization

Very threatening: radically innovative change

involves introducing a practice that is new to the industry

Internal

making people already employed by the organization aware of job openings (ex. Internal job postings, informal nominations, and employee profiles)

Interviews

most common. unstructured and structured

Dismissal

moving out of the organization through layoffs, downsizing, and firings.

Transfer

moving sideways with similar responsibilities

Promotion

moving upward in fair ways

Incentives

performance-based pay, such as commissions, bonuses, profit-sharing plans, and stock options

Recruitment:

process of locating and attracting qualified applicants for jobs open in the organization.

Onboarding

programs that help employees to integrate and transition to new jobs familiarize new employees with corporate policies, procedures, cultures, and politics. clarify work-role expectations and responsibilities

Traditional designs:

simple, functional, divisional, and matrix structures

Employment Tests

standardized devices organizations use to measure specific skills, abilities, traits, and other tendencies. - ability - performance - personality - integrity -drug & alcohol - criminal

Big Data

stores of data so vast that conventional database management systems cannot handle them.

Strategic Human Resource Management:

the process of designing and implementing systems of policies and practices that align an organization's human capital with its strategic objectives

Big Data Analytics

the process of examining large amounts of data of a variety of types to uncover hidden patterns, unknown correlations, and other useful information.

Selection

the process of screening job applicants and choosing the best candidate for a position.

Legally Defensible

the selection device measures job-related criteria in a way that is free from bias

Discipline and demotion

the threat of moving downward