Principles of Management-Exam 3

four characteristics common to all organizations

1. Coordination of Effort: Multiplying individual contributions to achieve results greater than those possible by individuals working alone 2. Common Goal or Purpose: Having a focus to strive for something of mutual interest 3. Division of Labor: Dividing tasks into specialized jobs that use human resources efficiently 4. Hierarchy of Authority: Using a chain of command to control and direct the actions of others

business organization in terms of the open-system model

Interaction with the external environment through permeable boundaries An open-system model encourages managers to think about the organization's life-support system

• Identify and explain the seven steps in the PROCEED model of employee selection.

Step 1: Prepare: Identify existing superior performers create a job description for the posistion identify the copetences or skills needed to do the job draft interview questions Step 2: Review review questions for legality and fairness Step 3: Oragnize Select your interview team and your method of interviewing assign roles to your team and divide the questions Step 4: Conduct Gather data from the job candidate Step 5: Evaluate Determine the match between the candidate and the job Step 6: Exchange Share data in a discussion meeting Step 7: Decide Make a final decision

• Describe how performance appraisals can be made legally defensible.

o 1. A job analysis is used to develop the performance appraisal system. o 2. The appraisal system is behavior-oriented, not trait-oriented. o 3. Evaluators follow specific written instructions when conducting appraisals. o 4. Evaluators reviewed the results of appraisals with ratees.

• Describe the difference between a centralized organization and a decentralized organization.

o Centralization: The retention of decision-making authority by top management o Decentralization: The sharing of decision-making authority by management with lower-level employees

• Describe the characteristics of organizational cultures and understand how organizational cultures are formed and sustained.

o Characteristics of Organizational Cultures  Collective: Organizations are social entities.  Emotionally charged: The organization's culture serves as a security blanket to its members.  Historically based: Trust and loyalty result from long-term organizational associations.  Inherently symbolic: Actions often speak louder than words.  Dynamic: Culture promotes stability and control.  Inherently fuzzy: Ambiguity, contradictions, and multiple meanings are part of culture. o Forms and Consequences of Organizational Cultures  Organizational values are shared beliefs about what the organization stands for.  The degree of sharing and the degree of intensity determine whether an organization's culture is strong or weak.

• Define delegation and list five common barriers to delegation

o Delegation  Assigning various degrees of decision-making authority to lower-level employees o Barriers to Delegation  Belief that only you can do the job right  Lack of confidence and trust in subordinates  Low self-confidence  Fear of being called lazy  Vague job definition  Fear of competition from subordinates  Reluctance to take risks that depend on others  Lack of early warning controls  Poor example of bosses who do not delegate

• Identify and describe the five basic departmentalization formats. Describe why different forms of departmentalization is necessary.

o Departmentalization  Grouping of related jobs or processes into major organizational units • Overcomes some of the effect of fragmentation caused by differentiation (job specialization) • Permits coordination (integration) to be handled in the least costly manner  Sometimes refers to divisions, groups, or units in large organizations o Functional Departments  Categorizing jobs according to the activity performed o Product-Service Departments  Grouping jobs around a specific product or service o Geographic Location Departments  Adopting a structural format based on the physical dispersion of assets, resources, and customers o Customer Classification Departments  Creating a structural format centered on various customer categories

• Explain Herzberg's two-factor theory of motivation. According to Herzberg, what motivates people?

o Dissatisfiers come from the job context or situation o Satisfiers come from job content or the work itself o Achievement o Recognition o Work itself o Responsibility o Advancement o Growth

• Describe each major link in the communication process

o Encoding (by sender): translate internal thought into a language or code that the intended receiver of the message will understand o Selecting a medium (by sender)  Media richness: a medium's capacity to convey information and promote learning. o Decoding: (by receiver): comprehension of the message received. o Feedback (from receiver to sender) o Noise: any interference with normal flow of communication

• Distinguish between equal employment opportunity, affirmative action, and managing diversity

o Equal Employment Opportunity is aimed at preventing future discrimination. o Affirmative Action Program is a concerted effort to make up for past discrimination. o Managing Diversity in the workplace o "In short, diversity advocates want to replace all forms of bigotry, prejudice, and intolerance with tolerance and, ideally, appreciation of interpersonal differences."

• Describe the Expectancy Theory of motivation. Explain why individual perceptions are so important in each part of the theory.

o Expectancy theory: assumes motivational strength is determined by perceived probabilities of success. o Expectancy: one's belief or expectation that one thing will lead to another. o Three Key Perceptions in Expectancy Theory  1. Perceived effort-performance probability  2. Perceived value of rewards.  3. Perceived performance-reward probability o "Effort---> performance ---> reward expectations determine whether motivation will be high or low." o "Employees tend to work harder when they believe they have a good chance of getting personally meaningful rewards."

• Distinguish between extrinsic rewards and intrinsic rewards. What are the rules for using extrinsic rewards effectively?

o Extrinsic rewards: payoffs granted to the individual by other people (e.g., money, benefits, recognition, praise). o Intrinsic rewards: self-granted and internally experienced payoffs (e.g., a sense of accomplishment).

• Define the term human capital, and identify some people-centered practices for achieving a competitive advantage using human capital.

o Human Capital  All present and future workforce participants who need to develop to their full potential as valuable assets to organizations o People-centered organizations enjoy a competitive advantage because of people-centered practices:  Protection of job security  Rigorous hiring process  Employee empowerment  Compensation linked to performance  Comprehensive training  Reduction of status differences  Sharing of key information

• Explain what human resource management involves.

o Human Resource Management (HRM)  The proactive acquisition, retention, and development of human resources necessary for organizational success  Moved from a support staff function (personnel) to a more strategic role in organizations

• Distinguish between mechanistic and organic organizations

o Mechanistic Organizations  Are rigid in design, rely on formal communications, and have strong bureaucratic qualities best suited to operating in relatively stable and certain environments o Organic Organizations  Have flexible structures, have participative communication patterns, and are successful in adapting to change in unstable and uncertain environments

media richness

o Media richness: a medium's capacity to convey information and promote learning.

• Explain the time dimension of organizational effectiveness

o Meeting organizational objectives and prevailing societal expectations in the near future o Adapting to environmental demands and developing as a learning organization in the intermediate future o Surviving as an effective organization into the distant future

• Explain how quality control circles, open-book management, and self-managed teams promote employee participation.

o Quality control circles: voluntary problem-solving groups committed to improving quality and reducing costs. o Self-managed teams: high-performance teams that assume traditional managerial duties such as staffing and planning. o Open-Book Management (OBM)  Benefits of OBM • Displays a high degree of trust in employees • Creates strong commitment to employee training • Teaches patience when waiting for results

• Describe the motivational lessons taught by Maslow's theory.

o Self-actualization needs (being everything one is capable of becoming) o Esteem needs (Self-respect; self-confidence) o Love needs (Social acceptance and affection) o Safety needs (Protection from the elements) o Physiological needs (Life-sustaining needs)

• Describe the important components of an organization's policies for dealing with sexual harassment and alcohol and drug use

o Sexual Harassment: Unwanted attention that creates an offensive or intimidating work environment  Unwanted physical contact  Gestures, displays, joking, and language  It is the manager's job to be aware of and to correct cases of harassment.  Ignorance of such activity is not a valid legal defense. o CONTROLLING DRUG & ALCOHOL ABUSE  Alcoholism: A disease in which alcohol disrupts one's normal life  Drug abuse costs employers $100 billion each year.  The Legal Side of Workplace Substance Abuse • Recovering drug addicts and alcoholics are covered by the Vocational Rehabilitation Act of 1973. • Employers with federal contracts exceeding $25,000 must comply with the Federal Drug-Free Workplace Act of 1988.  Referral and Rehabilitation • How to assist an abusing employee o Don't accuse the employee; offer help after the employee self-admits the problem. o Don't "play doctor." o Refer the employee to an employee assistance program (EAP) or community resources for rehabilitation.

• Compare and contrast skill learning and factual learning.

o Skill (Versus Factual) Learning o 1. Goal setting o 2. Modeling (Substitute meaningful presentation of materials for factual learning) o 3. Practice o 4. Feedback

• Explain how job enrichment can be used to enhance the motivating potential of jobs.

o Skill variety: The variety of activities required in carrying out the work o Task identity: The completion of a "whole" and identifiable piece of work o Task significance: How much impact the job has on the lives of other people o Autonomy: The freedom, independence, and discretion that one has to do the job o Job feedback: How much performance feedback the job provides to the worker

• What types of goals motivate?

o Specific o Difficult o Participatively set

• Explain the differences between structured interviews and unstructured interviews.

o Structured interviews: A set of job-related questions with standardized answers.  Question types used in structured interviews (See Table 10.4): • Situational: Can applicant handle difficult situations likely to be encountered on the job? • Job Knowledge: Does the applicant have the knowledge required for successful performance? • Job Sample Simulation: Can the applicant actually do essential tasks necessary for successful performance? • Worker Requirements: Is the applicant willing to cope with job demands such as travel, relocation, physical abilities, etc...  Behavior-Based Interview: Asking candidates detailed questions about specific behaviors in past job-related situations

• Explain how the traditional pyramid organization is being reshaped. What are three modern forms described in class and the text?

o The Changing Shape of Organizations  Characteristics of New Organizations • Fewer organizational layers • More teams • Smallness within bigness  New Organizational Configurations • Hourglass organization: Three-layer structure with constricted middle (management) layer • Cluster organization: Collaborative structure in which teams are the primary unit • Virtual organizations: Internet-linked networks of value-adding subcontractors

• Discuss why it is important for managers to know about the grapevine and nonverbal communication.

o The grapevine is the unofficial and informal communication system in an organization.

• Explain the concept of contingency organization design

o The process of determining the degree of environmental uncertainty and adapting the organization and its subunits to the situation  How much environmental uncertainty is there?  What combination of structural characteristics is most appropriate? o There is no single best organization design.

• Describe practical tips for improving each of the following communication skills: listening, writing, and running a meeting.

o Tips for More Effective Listening:  Tolerate silence. Listeners who rush to fill momentary silences cease being listeners.  Ask stimulating open-ended questions, ones that require more than merely a yes or no answer.  Encourage the speaker with attentive eye contact, alert posture, and verbal encourages such as "um-hum," "yes," and "I see." Occasionally repeating the speaker's last few words also helps.  Paraphrase. Periodically restate in your own words what you have just heard.  Show emotion to demonstrate that you are a sympathetic listener.  Know your biases and prejudices and attempt to correct for them.  Avoid premature judgments about what is being said.  Summarize. Briefly highlight what the speaker has just finished saying to bring out possible misunderstandings. o TIPS FOR EFFECTIVE WRITING  1. Keep words simple.  2. Don't sacrifice communication to rules of composition.  3. Write concisely.  4. Be specific. o Conducting Meetings  Meet for a specific purpose.  Distribute the agenda in advance of the meeting.  Communicate preparation expectations to attendees.  Limit attendance to essential personnel.  Open with a brief overview; review important items first.  Encourage participation but keep to the agenda.  Limit use of visual aids.  Clarify after-meeting action items.  Follow a specific start and end time and follow up.

• Explain ways in which management can encourage upward communication.

o Upward communication: process of systematically encouraging lower-level employees to share with management their feelings and ideas. o Types of Upward Communications  Formal grievance procedures  Employee attitude and opinion surveys  Suggestion systems  Open-door policy  Informal meetings  Task forces  Exit interviews

Interacting organizational subsystems

• Technical subsystem (production function) transforms raw materials into finished goods and services. • Boundary- spanning subsystems provide the organization's interface with the external environment. • Managerial subsystems bridge (control and direct) the technical and boundary-spanning subsystems.

• Describe how goal setting motivates performance.

 Directing attention  Encouraging effort  Encouraging persistence  Fostering goal-attainment strategies & action plans

• Describe different ways to evaluate or appraise employees

 Goal setting (management by objectives)  Written essays  Critical incidents  Graphic rating scales  Behaviorally anchored rating scales (BARS): performance rating scales divided into increments of observable job behavior determined through job analysis.  Weighted check lists  Rankings / comparisons  Multi-rater appraisals  360-Degree Review: a manager is evaluated by her or his boss, peers, and subordinates.

. Describe the ingredients of a good training program.

 Maximize similarity between the training and the job.  Provide as much experience as possible.  Provide a variety of examples.  Label or identify important task features.  Make sure general principles are understood.  Reward trained behaviors and ideas.  Design training content for obvious applicability.  Use questions to guide trainee's attention.

• Identify and describe the different barriers to communication.

 Process Barriers • Sender barrier • Encoding barrier • Medium barrier • Decoding barrier • Receiver barrier • Feedback barrier  Physical Barriers: Walls, ear protection, distance, etc...  Semantic Barriers: miscommunication caused by different perceptions of the meaning of words.  Psychosocial Barriers • Differing backgrounds, perceptions, values, biases, needs, and expectations of individuals can block communications.

• Identify the five communication strategies, and specify guidelines for using them.

 Spray & Pray: Impersonal and one-way communications (lectures)  Tell & Sell: A restricted set of messages with explanations for their importance and relevance  Underscore & explore: Information and issues that are keys to organizational success are discussed and explained with Two-way communication.  Identify & Reply: Responding to employee concerns about prior organizational communications  Withhold & uphold: Telling employees only what they need to know when you think they need to know it