ARE 112 - 4/27

Change Management at Duke Hospital

implementation of balanced scorecard

organization management activity

is ultimately determined by the "Industry Structure"

Internet Applicant Regulations

issued on Oct 7 2005, the internet application regulations and recorekeeping rules became effective 120 days later on Feb 6 2006 - the purpose of the rule was to clarify 3 impt issues 1. define "internet applicants" 2. outline record keeping req's relative to hiring done through the internet or related electronic data technologies 3. describe the info. employers must solicit and submit to the OFCCP to evaluate impact within their selection process req's that employers analyze all expression of interest meeting the following 4 criteria - p. 214

Teams at Duke Hospital and The Goal

manager affects change in the organization by teams rather than leadership by itself

Delphi technique

The Delphi begins with the initial development of a questionnaire focusing on the identified problem. An appropriate respondent group is selected, and then the questionnaire is mailed to them. Each participant answers the questionnaire independently and returns it. The initiators of the questionnaire summarize responses, then develop a feedback summary and a second questionnaire for the same respondent group. After reviewing the feedback summary, respondents independently rate priority ideas included in the second questionnaire, then mail back the responses. The process is repeated until investigators feel positions are firm and agreement on a topic is reached. A final summary report is issued to the respondent group. The Delphi can be modified in many ways.

Human Relations (HR) Issues

"Recruiting is a core competency for any company...Talented people don't need to work for you; they have plenty of options." Peter Thiel in Zero to One- on reserve in Shields. 1. Human resources vs. human capital - Human capital is tomorrows more proper term - Resources - coal, water, air (we exploit resources) - We invest in capital - The HR - is migrating to the concept of human capital where systems are developed to show an investment in people rather than an exploitation of people - When we talk about HR - we don't really talk about investing in people 2. Job design and position management - (100 or more = formal HR dept.); 1 HR or HC person for every 100 employees; you don't' need a full time HR person for very small law firms or dental practitioners - ex. 12 employees - you'll outsource that to someone else in most cases; we have to make sure we have a structured environment where everyone has a clear and concise def. of roles responsibility - a. Headcount as a critical success factor - CSF - addresses position management; a number of full time equivalents = I work half time and you work half time = full time equivalent; we use this to get some measure of productivity of our employee base; graph = I know we are looking for people since things are not working out the right way b/c of it; I do want to know my head count - a. Dashboards: → tells you the critical success factors you have for your organization; I need to know the speed, gasoline, oil levels, - I just need to know the critical success factors ( I don't need to know the exhaust temp./ I don't need to know the revolutions per minute of my tires) - a. Most critical success factor = avg. revenue per employee; most companies will say "if my revenue per employee is this number, then I am in good shape" - ex. CPA firm in SF - coworker went to work for Nordstrom instead in Seattle - in finance dept. - he had a sales quota even though he was the controller - he had to sell 5K worth of shoes b/w Nov. and Jan. - he really understood the business when he had to go down to the floor and sell shoes; the company generates profits out of revenue - not making entries - you got to have revenue - Everything in the panel to the right = critical success factors to the organization - gives us a substitute for the market discipline - we want to know how well we are doing; hard to know in HR unless we have some stats and data - a. Position management = how much of this job aid should we have - ex. you are a controller - you should have 5 people reporting to you; a lot of the data in the fig. to the right comes from position management

V. Another Quick Review for Terms in Functional Areas

- Staff functions - they do not touch the product; they tend to be the major users of information systems in accounting, finance, human resources, marketing; production people use information tech. as well but they are more hands on with the product rather than the information - Line functions - Product cost - cost of labor and materials that goes in the product that may be 60% the cost of a product - the other 40% is overhead or sustaining costs or capacity costs of this IT piece is a component of - we know we are spending the right amount of $ for the product cost - b/c (back to Williamson interview) - we buy labor and our materials on the auction market - the other costs are internal costs to the organization and I don't know If I am spending the right amount of money on this product or not - benchmarking - compare my costs to someone else's costs - Overhead or sustaining costs or capacity costs - The human resources costs and the information technology costs are included in the staff functions/overhead costs - the costs in the lower pic is included in the staff functions - Market discipline - if I am selling my product for $5 and you sell it for $6 - the market will discipline you if it's the same product but they are not going to buy your product but mine - not the same in terms of my tech. - if I am spending $20 per $1K worth of sales and tech., I don't know what you are spending on yours b/c that is proprietary info. - we want to understand market discipline to make sure what I am doing is right - have some type of market intelligence to determine what should it cost to do this particular step - market discipline in terms of what I am buying, selling, what I'm doing doesn't always have a market discipline; it tells me whether or not Im being efficient and effective in what I am doing

types of info. systems contd.

1. Example of a data center also known as a "server farm" = full of blade servers (on the bottom of 1stpic) - generally located along some source of water - heat - cogeneration - all the floors are water cooled - they generate lots of heat/ big servers - pic below 1stpic - much faster; contains your profile and who you are and what you've bought over the last 5 years; uses a lot of electricity - hydroelectric power - the power doesn't degrade over the transmission line) - Vendors: SAP Oracle IBM Generally same vendors as for EPR's and CRM's What makes the new IT systems work: - a. Computer literate users - you know how to use the systems (lots of training) - a. Telecommunications - needs to be supported by staff people - a. IT infrastructure - size and speed - consideration of my infrastructure (how many megabytes I have to have) a. Results in end-user computing - an example of the management sciences school of management - example is SQL - next page:

internet applicant regulations and EEO compliance

1990s - popularity of the Internet exploded Monster.com - changed the way people applied for jobs - no more pencil and paper resumes LinkedIn + Facebook 2003, 2004 post personale profiles - allowed corporate recruiters and headhunters to "target" specific individuals who appeared to be qualified based on their post info. - were being solicited to apply for open positions - enforcement agencies were also going to have to change to reflect the need for enforcement of equal employment opportunity - the req. that employers analyze their hiring process for discrimination did not change, but it did become much more complicated as a result of these tech. advancements everyone who indicated an interest in a position was considered an applicant and subject to analysis - Uniform Guideline Def. (1978) spam/ Shopping-cart model (apply for hundreds of jobs at once) - how can employers properly analyze their hiring processes for discriminatory impact?

V. Back to Information Technology

A. Relational databases allows for ease of access to data (1- infinity = one to many = you have many orders from Amazon; one customer w/ many orders; pointers from customer ID to Order ID - ex. 5 orders - individual items you purchased - Order ID Product ID - a. One-to-many relationships by use of pointers and addressing (pointers the the bolded letters; unique identifiers - individual items you purchased - OrderID Product ID) - here's this data based on your profile we can now use to figure out what else you'd like to buy a. Minimize data redundancy a. Increase data access and data security (I got your name in there once, not three diff. times) A. IT as an enabling technology for the flat organizational structure - they don't have to got through a data processing function to say what's the profile of the college student; we know you are a college student b/c you have Amazon prime - what do most college students buy - we don't have to go through many hoops to find that info) 1. Horizontal information flow such as predictive models: Taco Bell is an example. - Taco Bell is run by PepsiCo - their supply chain is impt. - Taco Bell is a simple organization - they don't make Whoppers or Big Macs - they only have 20 ingredients - they don't need a kitchen - they have hot trays - there is a centralized kitchen for taco bell - they know every taco, tortilla, Pepsi they've sold at that day for the last 5 years; they know the temp. of the day it was sold; they know if it was a holiday or not - they know the picnic weekend - so their algorithm says this is our predictive model - of what we are going to sell much like the demand chain - they got a prediction of what you should buy or they sell at Taco Bell - real time info. About what is being sold - ex. more Tacos are being sold in that Davis store than we planned so we're going to deliver some more of our product over there - a district manager can manage 20 stores in terms of supply chain rather than just 5 stores - some refrigeration but not the same kitchen as a McDonalds or Burger King - lowers facilities cost b/c the footprint or sq footage they have for the backside is much smaller than Burger King or McDonald's - can increase quality b/c we have a standardized kitchen 2. The "control" purpose of the hierarchal structure can be provided by IT reporting and communications - our dashboard from earlier in the class is an example. - This IT function allows us to flatten out the organization b/c I don't have to go through the IT function

II. The Business Case - From the Deloitte Case

Business imperative - means you have to get something done (its imperative); you need it and you need it now - there is a time dimension to the term imperative · The second important point is the business case - we have to understand the underpinnings of the organization to make sure we can execute the imperative Reasoning = time & what you are going to do A business case captures the reasoning for initiating a project or task. It is often presented in a well-structured written document, but may also sometimes come in the form of a short verbal argument or presentation. The logic of the business case is that, whenever resources such as money or effort are consumed, they should be in support of a specific business need. An example could be that a software upgrade might improve system performance, but the "business case" is that better performance would improve customer satisfaction, require less task processing time, or reduce system maintenance costs. A compelling business case adequately captures both the quantifiable and non-quantifiable characteristics of a proposed project. Business case depends on business attitude and business volume cases can range from comprehensive and highly structured, as required by formal project management methodologies, to informal and brief. Information included in a formal business case could be the background of the project, the expected business benefits, the options considered (with reasons for rejecting or carrying forward each option), the expected costs of the project, a gap analysis and the expected risks. Consideration should also be given to the option of doing nothing including the costs and risks of inactivity. From this information, the justification for the project is derived. Note that it is not the job of the project manager to build the business case, this task is usually the responsibility of stakeholders and sponsors.

HR issues contd.

Independent contractors vs true employee status Note: California legal case may lessen the ability to be an independent contractor - Not in the fair standard labor act; It comes under employment law and enforced primarily by the IRS - You just need to know the concept of independent contractor - The IRS gets involved with your status as employee - Ind. Contractors - if they buy their own computer, that's a deduction on their tax return; work through lunch - tax deductible; lots of deductions an employee can take if they are a independent contractor - also a lack of protection - they don't get overtime pay - no worker's compensation; exemptions on terms of benefits for this individual - b/c of asymmetric power, the IRS steps in - profit or loss - can the worker make a profit or suffer loss as a result of the work (ex. loss on working as an attorney - incurred a loss if it cost you more to do it than what you were paid) - investment - does the worker have investment in the equipment; faciltiies to do the work - attorney - you have your own office - you make your own investment - im running legitimate business - instructions - you have the right to give the worker instructions of when to work; controls over the worker - 5-20, you don't have to know them for the class - Ex. 1990s - Microsoft hired programmers to solve the year 2000 problem b/c they didn't put the four digits in there - hired the programmers as ind. Contractors - they don't pay into social security - paid $50/hr - after they passed the year 2000, they all got laid off - a couple applied for unemployment - I had to use their computers - I couldn't work for anyone else - you were really an employee - all of your tax deductions on your tax return are wrong - you owe back some soc. Security taxes - Microsoft becomes liable for these payments - were fined and paid taxes for all the individuals (we are talking about a true employment situation where your livelihood is dependent on this job)

SQL

Structured Query Language - Managing data, not processing or entering data - this is operational information systems side of data processing NOT the data process inside; a lot of math involved Example of SQL code - called a natural language - words that make sense - simple to do - we can select the pieces of data we want; pivot - excel = SQL - I can filter the data and use a little bit of transaction processing system outside of the data (ex. avg. score) Where you can take a class - most community colleges have online classes for SQL - Foothill community college Why is end-user computing and SQL important? Because it help a manager get the needed information faster.

Types of Information Systems

Mainframe - big computer "Dumb" terminals - looking things up - ordering food at McDonalds - that's a kiosk = dumb terminal - process in a server somewhere in the back, not inside that kiosk location there Workstations - your PC hooked up to a mainframe Transaction processing systems (TPS) - traditional accounting and finance applications like payroll and sales recording. The transactions (the data) "roll-up" to information (reports). - same as a BPR = TPS; traditional accounting systems - first automated; the first integrated were the manufacturing systems - TPS came from the automation of accounting systems - today we would call it information processing systems - you collect these individual transactions and then you collect them at the end of the day and say I had 50 sales today for $25K of this inventory over here - and then you "roll it up" into a summary data of what went on for the day - im processing individual transactions (this is really data collection) Operational information systems - applications that move along the supply chain: inventory control, order-processing, procurement, human-relations management (done once that data is collected from TPS); we don't call it OIS- uses the data that is provided by the TPS ERP (same as the one we discussed in BPR) - enterprise resource planning systems - links transaction-processing systems with operational information systems into one integrated system that include (generally) at least these two characteristics: (TPS + operational information systems = an ERP) - the TPS came first - they were separate; they took that data and took it to a operational information system - lets make this transfer of data into one system = dev. Of the ERP - i. Right hand side - HCM - human capital management features of a JD Edwards vendor for ERPs - all the components you need are found in the ERP for that component to the right - combo of payroll = transaction processing system & talent management about who this position management for this category over here - Best practices - so we end up with the "tail wagging the dog" - but the tail is right this time. - this is a data processing term - we've done it this way for the last 20 yrs, we don't want to change - if we change, its going to cost you a lot of money b/c we are not going to change our system for it, we got to built something on the side of this thing ---- they say we've installed 25K payroll systems last year and maintain them - this is the best way to do it - the way you are doing it is not the best way so you need to change the way things are done = tail wagging the dog = they know how to do these things - they say I will change my way we do payroll for one reason or the other - not simple - ex. transit authority putting a data processing system - when the bus came in, -- you came in after 8 hrs and 2 mins - you went 2 mins overtime - in union contract - it rounded it up to the next 10 min point - when you rolled in, you got paid for 8 hrs and 10 mins of drive time; you get an additional 30 min of check in time - if it takes you 45 mins. To check in, you only get paid for 30 mins of check in time - the system - 1/10 of an hour rather than 10 mins - no one saw this in the process when they signed the contract - they found out the error - change the contract from a 2 min to a 12 min period - if you change one part to the contract, all grievances come up; trash talked b/w employees and management - you have to be very careful in what you do b/c the computer can make the mistake; that's why you want to have best practices to know what is going on - A single-source of information - so no "redundancy of data" - this can be risky to the organization so maybe up to 80% of the ERP effort is for security, backup, recovery, validation - verification of data. - some piece of data can exist in 2 diff. places - it takes space, slows down processing - so we don't change in space A but yes in B - can be a problem = "redudancy of data" - ex. Canvas is not integrated in Sisweb - name problems - Sam and Samara - causes headaches b/c you don't have the single source of info. - if we have 2 pieces of info. You got to back things up, security, verification of data - A single-source to all functions (1 vendor, SAP, oracle; sometimes you have to pass something on to the side; one vendor for word, powerpoint, excel = diff. to do your updates) - Generally requires the use of data centers. (we want a general idea of the ERP that supports the MIS) - one big data center - server farm

Independent contractor

Mistakenly classifying an employee as an independent contractor can result in significant fines and penalties. There are 20 factors used by the IRS to determine whether you have enough control over a worker to be an employer. Though these rules are intended only as a guide-the IRS says the importance of each factor depends on the individual circumstances-they should be helpful in determining whether you wield enough control to show an employee- employer relationship if you answer yes to all of the first 4 q's, you're probably dealing w/ an independent contractor; Yes to any of q's 5-20 means your worker is probably an employee 1. Profit or loss. Can the worker make a profit or suffer a loss as a result of the work, aside from the money earned from the project? (This should involve real economic risk-not just the risk of not getting paid.) 2. Investment. Does the worker have an investment in the equipment and facilities used to do the work? (The greater the investment, the more likely independent contractor status.) 3. Works for more than one firm. Does the person work for more than one company at a time? (This tends to indicate independent contractor status, but isn't conclusive since employees can also work for more than one employer.) 4. Services offered to the general public. Does the worker offer services to the general public? 5-20 -> pdf file

Wile E Coyote Case

Most Surviving Innovation leaders did not look like the traditional heroic innovator. Their energies were devoted to the mundane tasks of stripping away barriers, encouraging participation, and creating condi- tions for others to succeed. the more I studied the Surviving Innovation files, the more I began to see these leaders as the antidote to Wile E. Coyote thinking. Those who have not watched a Road Runner cartoon lately may need a reminder of the unvarying plot. Wile E. Coyote (also known as hardheadipus-ravinus, eatibus anythingbus, famishus outrageous, carnivorous vulgaris) has a single mission in life: to catch the Road Runner (also known as hot roddicus supersonicus, tastius supersonicuus, birdibus zippidus, velocitus delictibus). Wile E. has many fine qualities, of course,which is why we all tend to identify a bit with him. "Genius by trade" reads his card. On the positive side, he is incredibly mission driven - he lives and breaths Road Runner. He also knows his environment (does anyone know the American Southwest better?) and he knows the Road Run-ner's habits (has there ever been a situation when the Road Runner did not show up at almost the right mo- ment?). Wile E. certainly challenges the prevailing wisdom of how the world works - he will paint a tunnel on a mountainside and, voila, a train will actually emerge from what was once (and will soon be again) solid rock. He is ready to invest in new ideas (does anyone spend more money on gadgets?) And he uses old stuff in new ways: he puts a refrigerator on his back, using a meat grinder and an electric motor to make snow for his skis (the motor gives up, where else, over a canyon); he attaches a street cleaner's wagon to a weatherballoon driven by an electric fan in order to drop an anvil on the Road Runner (the balloon loses air, where else, over a canyon); he puts an outboard motor in a bathtub strapped to his back to better drive his roller skates (he is driven underground into a mountainside). He also has that bias for action Tom Peters writes about and takes very big risks (is anybody more will- ing to stand over the canyon?). He gives himself permission to fail and is ready to learn - he is a voracious reader of tomes like "How to Build a Burmese Tiger Trap" and "How to Tar and Feather a Road Runner."And he comes back time and again. On the downside, he has simply picked the wrong mission. He can never, ever, ever catch the Road Runner2. He is not operating in the zone of just beyond the impossible. Furthermore, he expects to violate the rules of physics and get away with it. He will not change diets - anyone else would learn to like snake or cactus. He cannot turn the corners that pop up along the way - how many times does he find himself over the canyon in a cloud of smoke. Wile E. is also addicted to novelty for novelty's sake and relies on one source of stuff (ACME) in creat- ing innovations. (Turns out, of course, that the Road Runner is the CEO of ACME.) He never fine-tunes -that refrigerator-meat-grinder package would work if he just had a backup motor. He invariable works alone- no other coyotes gang up with him to catch the Road Runner. Even though he never fine tunes, he will do the same thing over and over - how many times has he pulled the same rock down on himself? As for learning, he almost never reads past the first page or the large print - the earthquake pills that do not work on Road Runners, the ACME dehydrated boulders that expand too fast, the do-it-yourself explod- ing-camera kit that fails when Wile E. forgets to remove the lens cap. Most important, he is simply unwill- ing to accept the truth that he will never catch the Road Runner. (Truth be told, there is one cartoon in which Wile E. finally catches his prey. Unfortunately, he as shrunk to one-tenth of the Road Runner's size andcannot consume his prize!) He is not being honest about either why he exists or how he will know when he is successful. Although he tries to eat a Road Runner baked of clay, he ought to stop innovating. by Paul C. Light The place to start abandoning Wile E. Coyote thinking is with honest questions about why the organiza- tion exists. The leaders I came to admire certainly made their share of Wile E. Coyote investments, but they learned from the results. Unlike Wile E. Coyote innovators, who spend much of their time inventing novel ways of failing, the Sustaining Innovation leaders would, I am certain, have caught the Road Runner. (Kathryn Robert came pretty close: the zoo has coyotes and free-range chickens.).... This is a SWOT exercise

decision making

Most decision have to do with resources.

Information Technology

Note: Here we go way back to the schools of modern management and look at the management science school in the context of some of our recent topics. Think about Lou and Alex here. 1. MIS - management information systems - where we actually get the data to manage the organization as opposed to hardware, backups, security systems of what we consider the "IT" function 2. Data - the attributes - first name, last name (Sisweb); home address, permanent address - phone number, major (while at Davis) - these are attributes that describe who you are 3. Information - the organization of the attributes - put all the data info together (what you just described in the data - the attributes - makes decisions or have knowledge about that person who has these various attributes (that makes sense to someone) 4. Usefulness of information (goal of management systems) - make the info useful a. Timeliness - the information is available in-time to make the optimal decision: real-time is the term used for "current" data like the real-time reporting of bank balances. (ex. at the end of the quarter at Davis you want your grades; you want them within three days of taking the final - not a month or two after; you want them timely - time dimension information when its going to be useful to you) - b. Relevance - only the information needed by the manager is provided and extraneous information that will confuse the decision making process is eliminated. (you don't want to know the score you got on the exam, you want to know if it was a A or A-; you might not want to know what questions you missed, you just want your grade) - I don't want employees to know who we just fired or hired, just are we at 100 employees or 110 employees c. Completeness - this is other side of relevance: the information that is needed is provided and if not then uncertainty, ambiguity and risk increase. (ex. you want ALL your grades; not just for two classes, you want them all) d. Quality - accuracy and reliability describe the quality of the information: accuracy is the relationship to reality and reliability is related to the variation of the results in repeated tests. (you look at your grade but it changes from day to day; we want this to be accurate, reliable, describes the quality info, - the grade I got on Sisweb is the actual grade that I got) Example: Blood test in an emergency room:(take a blood sample to an auto-analyzer; samples are placed in there; 15 minutes later comes a bunch of data - blood count, type - I don't care about those things - I want to know if there are any barbituites or narcotics in the bloodstream or alcohol or blood type - If I give them something for pain and they have cocaine in the blood stream, it will kill them; so I need to know something right away; Abbot labs w/ Motorola had a little tablet that takes a blood sample that tells them the 5 things they would want to know - timely - they would know right away, relevance - I don't need to know blood count, I just need to know what the alcohol content is, and if there are any of these 5 narcotics in the blood - complete - I want all the info everytime I do it - quality - Im going to take 3 samples and do it and I am going to get the same results all three times) - the IT changes the way the organization is going to operate = we often call this an "enabling technology" - enables an organization to operate diff. than they did before - relates to the management sciences approach (changes things that we couldn't do before) //// - Relationship to organizational behavior: change will occur where information is used - 1. Optimizing and satisficing analysis - use the "chains" to do this. - 2. In IT (information technology) consulting there is a saying: (IT is often implemented in the chains - value chain, supply chain - the environment that it occurs in is not holistic - its really focused on processes that we do in the organization - business processes, reengineering) - IT applies to the entire organization, but we are solving specific needs "The adage 'You can't teach an old dog new tricks' is not true. What is true is that 'When you can't learn a new trick you are an old dog.'" - so the learning organization is closely related to information technology. - every 5 years, you would go through a new generation of tech.; in today's world, you would go through some new technology inside the system Important point for us: IT affects the way the organization behaves - how IT affects the organization for us is limited to how decisions are made. We are not interested here in the technology but rather how IT affects the decision making process.

HR issues continued

SKA's for job design - (more common in the public sector) - firefighters, police, probation officers, park rangers, librarians - we design the job based on skills, knowledge, and abilities; so we can rank a job by SKA's - give a numeric factor - and from that factor we can determine some range of compensation for this position - a. Skills - something you can learn - something you can normally do - ex. Excel, interviewing people; entry level - after the 1styear we expect you to be adequate in these 5 skills; mid-level higher - we may want to test you on these particular skills - a. Knowledge - what you use your skills on - you may be very good in Excel but you may not know anything about the oil industry; you might know something about the healthcare industry so that's the knowledge you have (excel = skills; knowledge = your knowledge of the health care industry - you understand Medicare, Medicaid, reimbursement rates) - Abilities - very diff; your ability to apply skills and knowledge; we can learn skills and knowledge; abilities are pretty standardized; where abilities really come into place has to do with physical abilities - firefighter - you need to be able to carry up a 50 pound hose up 8 stories after your training - in most cases, abilities have to do with physical abilities in a job; also to learn quickly, your quantitative abilities and verbal - We can rank a job based on SKA's - We want to make sure how we get the right people in the organization; we want to make sure tasks are learnable, doable - impt. Of people and managing them the right way ----- Discrimination cases - examples (in HR or HC - they spend a lot of time on preventing discrimination) a. Protected classes: Title VII of the Civil Rights act of 1964 - protected classes = legal term- a protected class is any individual or group but primarily individuals that are offered protection by a federal statute in terms of discrimination b/c they had been subject to discrimination - title = we have to offer these people protection b/c they cannot protect themselves b/c of asymmetric power - i. All persons of color - we wouldn't call it by this today - there are better terms out there; only person who is not a p.o.c. - white male, northern European or American descent or Canadian descent - everyone else is essentially a person of color - i. National origin---- ex. discrimination towards someone Asian or anyone else who is not a white male or female of such descent as mentioned previously - these people gen. have asymmetric power - hiring authority tended to be in some respects all white and carrying discriminatory feelings for these people and not giving them equal opp. For access to employment (also included on the act) - i. Gender including pregnancy but not sexual orientation - there is currently a bill in Congress on sexual orientation (slowly becoming a protected class) - NEVER ask a prospective employee if they are pregnant; don't ask a female or males wife if they are pregnant; don't ask q.'s like are you thinking about having a fam? - even adoption - great protection for these people in this category - you can't bring this up formally in the process - i. Religion - can't be discriminated b/c of religious beliefs ////// Disabilities - Americans with Disabilities Act (1990) - - "reasonable accommodation" - fought quite a lot by the business community b/c they just didn't know - today's business community is a big proponent of ADA - not a disability in the workplace but in their personal space but does not affect the productivity - prob. With this = reasonable accommodations - ex. bad back = need a chair that cost $500; normal chairs in the office cost $100; court says $400 is fine; 2 person law office w/ 7 employees - that's not that much money but we can see this might be a little of a hardship on you - dominium's - some of these laws maybe apply to 30 or more employees or 50 more employees = diminimus aspect to it: RA - if its not arduous or difficult on the firm - we make accommodations for them b/c we find these individuals to be very productive Age: Age Discrimination Act of 1967: age of over 40 years; you can't fire me just b/c of my age - when people get close to 40 - pension benefits - they were fired one day before their 40 birthday - that still happens today = age discrimination - this area is pretty broad and deep Pregnancy (also fought by the business community but now is embraced by it) - Family and Medical Leave Act (1993) known as "FMLA" - 12 weeks of unpaid leave. (people take the leave but most still work at home) - PGE in SF gives 6 months of family leave at some pay level and they get to work at home - very popular in Europe - does not to go of death of fam. Or sick leave... Legal theories of discrimination - this is primarily ethnic and racial, but can also be socio-economic - - a. Disparate or Adverse Treatment - AT - im not going to hire you b/c you are a woman - I explicitly say I am going to treat you this way; Native Americans don't apply - I treated you that way (congress came up w/ these terms) - treatment and impact a. Disparate or Adverse Impact - ex. you have to be able to bench press 200 pounds - the avg woman can't do that - this has an impact on you - I wasn't explicit about it, I was implicit; implicit and impact both start with "I" - if I set up a business standard that prevents you from getting a job a. Big picture - our population group where our plant is 30% p.o.c. - if only 5% of the people I hire are p.o.c. that's a big diff. b/w the population - that doesn't mean I discriminated - its poss. That I have a disparate impact on you b/c of the way I did the test a. Why does adverse impact occur? - a. Griggs v. Duke Power Co. - power co. - late 1950s - put a job description for a pole man - climb a pole to fix powerlines - job description - had adverse impact against blacks- NC - western in the 1960s - severe discrimination against p.o.c. to the point where they only had money for 2 years of high school - had exams that disadvantaged them - took it to court - does this test make any sense? - do you really need a hs diploma - Duke Power didn't mean to do this - they just didn't think it through - they changed it to no hs diploma and rather an ability for some sort of intelligence - the intelligence test was not geared towards minorities // Equal pay for men and women: Equal Pay Act of 1963: comparable work standards - not fully implemented - women make 80% of what men would make - Seattle - librarians w/ college degree - worked odd hours - worked hard - vs. garbage truck drivers - they think they should get the same pay as garbage truck drivers - they work for a private co.; the librarians work for the city - there's nothing we can do about it - the women didn't have the power or the unions like garbage truck drivers; not a monopoly - went to court - same scores in SKAs - in most discrimination cases, people just don't know - Harassment - creates a hostile or offensive work environment or when it results in an adverse employment decision - when you are actually working there or I'm going to harass you for some reason; 2 types of harassment - a. Sexual Harassment - makes it uncomfortable for you to get the job done or prevents you from getting a promotion; most of these cases don't go to court anymore b/c the perpetrator or the defendent - if they know they are guilty - they know the results of it wont be good - Police chief of Beverly Hills - abruptly resigned b/c he knew he was going to go to court; Ex. big insurance company in Sacramento - VP - most are populated w/ women in a clerk position - maj women - 30% males - males tend to be in the administrative positions/ women - clerk positions - the VP - mean - made the place very uncomfortable - gather the evidence and bring it to the HR dept. - the VP could either go to county jail for 365 days b/c he lied in court or else your on probation, house arrest and for the next year you have to carry a sign around you neck saying "I'm a sexual harasser" - he didn't want to go to jail - he quit within a month b/c he couldn't walk around with the sign a. Racial or Ethnic Harassment - uncomfortable for you to do your job as well - Fair Labor Standards Act - primarily for overtime wages for our class a. Nonexempt employees - See Course Pack i. - fed govt. steps in to protect employees b/c of asymmetric power - employer has more power; shows the complicated nature of labor law a. Exempt employees; - pay; overtime; child labor provisions; exempt = you are a non-exempt employee - you're protected - you get overtime, you get min. wage and you can't work under age 16; what you have to do be exempted, you have to fall in a certain category; for us, let's just consider overtime; ex - I hire you to work for my as my chief accountant - $34/hr - im going to pay you overtime, you are doing a terrific job - im now going to put you on salary, but you're still working overtime - you don't get paid for overtime b/c you are on salary - you don't fall into that category of being exempt b/c you are on salary... a. Ex - 1990s - student working in a CPA firm in Sac - worked hard for 2 years - didn't like it anymore - decided to be an attorney at Sac - took a labor class and learned about the fair labor standard acts - worked overtime but only given a bonus at the end of the year - you should've been paid a month and a half worth of pay b/c you were not exempt b/c you were not a professional CPA - ex. if you pass the bar - you're a pro. Attorney - you don't get paid overtime - they prevailed and company's went back 5 years to pay people overtime - wasn't a class action - you need to know the law a. County elevator workers - middle of Nebraska - one city hall - snowstorm - you worked 8 hours but we are going to make you work 12 hours - it makes sense to have elevator operators exempt from overtime - when you take the job - they say there is extra work here but you don't get paid over time; child labor really has to do with fam. Labor - if I have a farm and you're 12 years old, ill let you drive the tractor - whatever I pay you we'll put in your scholarship program a. Sugar processing employees -exempt from overtime - sugar is grown in Florida, Georgia, Mississippi - we don't want to pay them overtime - tend to be p.o.c - lacked education - they wanted a job a. The fair labor standard act does not always protect people a. Show you this to show you the complications of labor law

change strategy

These are provided as examples of change strategies. There are other approaches as well. The point is that change management should and be driven by a strategy.

Comment on Values and the Organization

This is important as values are one of the drivers how organizations process tasks. Here is an example from The Art of War- Values set boundary for decisions:- what decisions do we care about; how do they affect other people; what areas can we make decisions about; how should we make these decisions - Sun Tzu (general) was approached by a king - Wu - looking for a general to lead his army- tail end of this is relevant for the quiz - - you have to prove to me you are a good general - the women = army - soldiers laughed at his orders; I take responsibility for what is going on here (managers job); not the workers problems, but the officers; managers have to tell individuals what they hear clear and distinct and that they are the right ones - they have values - aren't asked to do something that's wrong - Management override - if you have a job and you got a task, but someone says to do otherwise - these are the ways we do things here - it's the values that matter - not the boss's instructions that matter - 3rd highlight in passage - Cannot translate them to deeds - this is leadership - they don't have a market discipline where its hard to say whether now we have the right info. Tech. system, the right hiring processes - these things have to be distinct and clear of what we are going to do - The values matter - particularly in the functional areas of the organization (ex. finance, production, supply chain) <- those are easily measured in terms of their function - product got delivered in time/ product had right quality - Functional areas are not as easily measured by market discipline - either we made ourselves successful or didn't - either we made our sales quota or didn't or the good were delivered or not delivered "Sun Tzu Wu, according to Ssu-ma Ch'ien, was a native of the Ch'i state. His Art of War brought him to the notice of Ho Lu, King of Wu [in middle-eastern China, west of Shanghai. The Capital was the present city of Wuchang. Ho Lu said to him: "I have carefully perused your thirteen chapters. May I submit your theory to a slight test?" Test of His Principles Sun Tzu replied: "You may." Ho Lu asked: "May the test be applied to women?" The answer was again in the affirmative.So arrangements were made to bring 180 women from the palace. The words of command having been thus explained, he gave them halberds and battle-axes in order to begin the drill. Then, to the sound of drums, he gave the order, "Right turn!" But the girls only burst out laughing. Sun Tzu said: "If the words of command are not clear and distinct, if orders are not thoroughly understood, then the general is to blame." Then he started again, and this time gave the order, "Left turn!" Whereupon the girls once more burst into fits of laughter. Sun Tzu said: "If the words of command are not clear and distinct, if orders are not thoroughly understood, the general is to blame. But if his orders are clear and the soldiers nevertheless disobey, then it is the fault of their officers." - So saying, he ordered the leaders of the two companies to be beheaded. Wu's King was watching the scene from the top of a pavilion; and when he saw that his favorite concubines were about to be executed, he hurriedly sent down the following message: "We are now quite satisfied as to our general's ability to handle troops. If we are bereft of these two concubines, our meat and drink will lose their savor. It is our wish that they shall not be beheaded." Sun Tzu replied: "Having once received His Majesty's commission as general of His forces, there are certain commands of His Majesty which, acting in that capacity, I am unable to accept." Accordingly, he had the two women beheaded, and installed the pair next in order as leaders in their places. When the execution was over, the drum was sounded for the drill once more. And the girls went through all the evolutions, turning to the right or to the left, marching ahead or wheeling back, kneeling or standing, with perfect accuracy and precision, not venturing to utter a sound. Then Sun Tzu sent a messenger to the King, saying, "Your soldiers, Sire, are now properly drilled and disciplined, and ready for Your Majesty's inspection. They can be put to any use that their sovereign may desire; bid them go through fire and water. We have no wish to come down and inspect the troops." Sun Tzu's retort was: "The King is only fond of words and cannot translate them into deeds."After that Ho Lu realized that Sun Tzu knew how to handle an army, and finally appointed him general. This narrative may be apocryphal, but Sun Tzu says in his book: "There are commands of the sovereign which must not be obeyed." This comment reminds us of the importance of values in the organization and you will see Lou's respect for values in the book - remember "I manage by principles" (not procedures - added). In a more "contemporary" setting: "In matters of style, swim with the current; in matters of principle, stand like a rock."- Often attributed to Thomas Jefferson, third President of the United States. We will now see where the organization puts "values" into what the organizations does - some of the functional areas.

adverse impact

after the 1964 Civil rights act - concept of adverse impact def. - a substantially different rate of selection in hiring, promotion or other employment decision which works to the disadvantage of members of a race, sex or ethnic group (Uniform Guideline Q's and A's Supplement #10) written tests typically have higher levels of adverse impact against minorities - physical ability tests typically have adverse impact against women, especially when they measure upper body strength test bias is one reason adverse impact can occur (only 1-5; reject 6) - genuine discriminatory intent and actions can be yet another reason why adverse impact can occur in a selection process has become a load ed term, fraught w/ suggestions of ill intent on the part of the employer. - it simply describes diff's b/w groups on a testing process - It is NOT a legal term that implies guilt, nor is it a psychometric term that implies unfairness or test bias virtually every employer that tests for relevant job skills will generate adverse impact in a testing process in one way or another, and most studies show that adverse impact is not normally due to forms of bias inherent to the tests the first major adverse impact case was Griggs v Duke Power Company 1971 - was using a hs diploma req. and an off the shelf intelligence test as a screening device, both of which had adverse impact against blacks. Since the jobs being tested did not appear to really require a hs diploma to be performed successfully, the court held that the employer had to show a "business necessity" for these 2 req's; otherwise, Duke Power would be in violation of the Title VII - the court - they operated to disqualify blacks at a substantially higher rate than white applicants Adverse effect - refers to the total employment process which results in a sig. high er percentage of a protected group in the candidate pop. being rejected for employment, placement, or promotion - if the acceptance rate of the protected group is greater than or equal to 80% of the acceptance rate of the remaining group, then adverse effect is said to be not present by definition

Exempt Employees

some employees are exempt from overtime pay provisions, some from both the min. wage and overtime pay and some from the child labor provisions of the Fair Labor Standards Act (FLSA) - exemptions are narrowly construed against the employer asserting them = employers and employees should always closely check the exact terms and conditions of an exemption in light of the employee's actual duties before assuming that the exemption might apply to the employee - the ultimate burden of supporting the actual application of an exemption rests on the employer exemptions are typically applied on an individual workweek basis - employees performing exempt and non-exempt duties in the same workweek are normally not exempt in that worksheet commonly used exemptions - pdf file ex. - executive, administrative, professional and outside sales employees - who are paid on a salary basis are exempt from both the min. wage and overtime provisions of the FLSA country elevator workers - (rural) - Overtime exemption - sugar processing employees - Overtime exemption