GB 370 Unit 9 Principles of Management chapter 10, 16

having cultural diversity means

having employees who learn something about the culture of different countries, not just acquire language skills. This helps bring about open-mindedness across cultures

The Balanced Scorecard, when applied to HR

helps managers align all HR activities with the company's strategic goals.

Developed by Robert Kaplan and David Norton, the Balanced Scorecard

helps managers define the performance categories that relate to the company's strategy. The managers then translate those categories into metrics and track performance on those metrics.

The "buy" decision means

hiring an employee who has all the necessary skills and experience to fulfill the role from day one. is useful when it's too difficult to predict exactly which skills will be needed in the future

Workforce Scorecard

identifies and measures the behaviors, skills, mind-sets, and results required for the workforce to contribute to the company's success.

HR is thus becoming a strategic partner by

identifying the skills that employees need and then providing employees with the training and structures needed to develop and deploy those competencies.

Organizations need human resources (HR) to be a partner in

identifying, attracting, and hiring the type of employees who will be most qualified to help the company achieve its goals

Transformational leaders

lead employees by aligning employee goals with the leader's goals. Thus, employees working for transformational leaders start focusing on the company's well-being rather than on what is best for them as individual employees

authoritarian decision making

leaders make the decision alone without necessarily involving employees in the decision-making process. -researchers found this method to be least favorable

relationship-oriented leaders

leaders would be effective when situational favorableness was moderate

people-oriented behaviors

leading to employee satisfaction

laissez-faire decision making

leave employees alone to make the decision; the leader provides minimum guidance and involvement in the decision. -tends to be more problematic

A project team is

likewise a temporary team, but it meets full time for the life of the project

Leaders whose integrity is questioned

lose their trustworthiness, and they hurt their company's business along the way.

Participative leaders

make sure employees are involved in making important decisions Effective when employees have high ability levels and decisions to be made are personally relevant to them

The coming shortage of workers

makes it imperative for managers to find, hire, retain, and develop their employees.

Contingent rewards

mean rewarding employees for their accomplishments.

higher self esteem

more confidence, affects their image in the eyes of their followers

Employees who are highly involved in conceiving, designing, and implementing workplace processes are

more engaged and perform better.

task-oriented behaviors

more strongly relating to leader effectiveness

Achievement-oriented leaders

set goals for employees and encourage them to react them. This style challenges employees and focuses their attention on work related goals. Effective wen employees have both high ability levels and achievement motivation levels.

give your employees reasons to stay with your company

spend time talking with employees about their career goals. Listen to their likes and dislikes so that you can help them use the skills they like using or develop new ones they wish to acquire Don't be afraid to "grow" your employees. Some managers want to keep their employees in their department. They fear that helping employees grow on the job will mean that employees will outgrow their job and leave it

successful organizations have several things in common

such as providing employment security, engaging in selective hiring, using self-managed teams, being decentralized, paying well, training employees, reducing status differences, and sharing information

In large, bureaucratic, and rule-bound organizations

such as the government and the military, a leader's traits may have less to do with how the person behaves and whether the person is a successful leader Ex:bravery, not as helpful in business settings

Leaders with high self-esteem

support subordinates more, and punish more effectively when needed

low quality exchange members

you may not have access to the positive work environment available to the high-quality LMX members low LMX employees may feel that their situation is unfair they are more likely to be given the benefit of the doubt.

Typical HR services that can be formed in an e-HRM system include:

• Answer basic compensation questions. • Look up employee benefits information. • Process candidate recruitment expenses. • Receive and scan resumes into recruiting software. • Enroll employees in training programs. • Maintain training catalog. • Administer tuition reimbursement. • Update personnel files.

agreeableness

being affable, tolerant, sensitive, trusting, kind, and warm

Neuroticism

being anxious, irritable, temperamental, and moody

openness

being curious, original, intellectual, creative, and open to new ideas

managers and CEOs are often viewed as responsible

What happens when people and organizations fail

Conscientiousness

being organized, systematic, punctual, achievement oriented, and dependable

(eHRM)

business solution is based on the idea that information technologies, including the Web, can be designed for human resources professionals and executive managers who need support to manage the workforce, monitor changes, and gather the information needed in decision making.can enable all employees to participate in the process and keep track of relevant information.

Nonmonetary pay

can include any benefit an employee receives from an employer or job that does not involve tangible value. This includes career and social rewards, such as job security, flexible hours and opportunity for growth, praise and recognition, task enjoyment, and friendships.

Situational interviews ask

candidates to describe how they handled specific situations in the past (experience-based situational interviews) and how they would handle hypothetical questions in the future (future-oriented situational interviews.)

inspirational motivation

come up with a vision that is inspiring to others.

Managers first need to

define the skills that the company will need for the future. Then, they can "make or buy"—that is, train or hire—employees with the needed skills. Retaining these employees requires engaging them on the job. Good talent management practices translate to improved financial performance for the company as a whole.

experienced-based questions are

"Tell me about a major initiative you developed and the steps you used to get it adopted." Or, "Describe a problem you had with someone and how you handled it."

Vroom and Yetton's Normative Decision model

- a decision-making tool to help leaders determine how much involvement they should seek when making decisions -go through a list of questions and you work your way through a funnel based on your response

People oriented behaviors (aka consideration)

- include showing concern for employee feelings and treating employees with respect -genuinely care about the well-being of their employees and they demonstrate their concern in their actions and decisions

Servant leadership approach

defines the leader's role as serving the needs of others. According to this approach, the primary mission of the leader is to develop employees and help them reach their goals

developing global leaders means

rotating employees across different cultures and giving them international experience. Companies who do this best also have policies of giving managers incentives to share their employees with other units

the four key elements of HR

selection and placement job design compensation and rewards diversity management

Limitations of behavioral approaches

-fell out of favor because they neglected the environment in which behaviors are demonstrated Explained: researchers were trying to find a set of identified behaviors that were applicable in all circumstances, but no circumstance is exactly alike which makes that completely unrealistic -specifying the conditions under which these behaviors are more effective may be a better approach.

Task-oriented behaviors (aka initiating structure)

-involve structuring the roles of subordinates, providing them with instructions, and behaving in ways that will increase the performance of the group -directives given to employees to get things done, ensure goals are met

Incentive pay

A bonus paid when specified performance objectives are met. May inspire employees to set and achieve a higher performance level and is an excellent motivator to accomplish goals.

at-will employment doctrine

A doctrine of American law that defines an employment relationship in which either party can break the relationship with no liability, provided there was no express contract for a definite term governing the employment relationship and that the employee does not belong to a collective bargaining unit (i.e., a union)

Stock options

A right to buy a piece of the business that may be given to an employee to reward excellent service. An employee who owns a share of the business is far more likely to go the extra mile for the operation.

Team competence

What is the ability of this particular team to solve the problem? Let's imagine that this is a new team that just got together and they have little demonstrated expertise to work together effectively. We will answer this as low, or L.

A HPWS is all about

determining what jobs a company needs done, designing the jobs, identifying and attracting the type of employee needed to fill the job, and then evaluating employee performance and compensating them appropriately so that they stay with the company.

The key to a successful "make" decision is to

distinguish between the high-potential employees who don't yet have the skills but who can learn them from the mediocre employees who merely lack the skills.

Goal alignment

Are the employee goals aligned with organizational goals? In this instance, employee and organizational goals may be aligned because you both want to ensure that employees are healthier. So let's say the alignment is high, and follow H.

Leaders

do not rely on the use of force to influence people. Instead, people willingly adopt the leader's goal as their own goal

The authentic leadership approach

embraces this value: its key advice is "be yourself."

democratic decision making

employees participate in the making of the decision. -employees are usually most satisfied using this method, but effects on decision quality tend to be weaker

Group expertise

Does the group have expertise in this decision-making area? The group in question has little information about which alternatives are costlier or more user friendly. We'll say group expertise is low. Follow the path from L.

Robert House's path-goal theory of leadership

Based on the expectancy theory of motivation which suggests that employees are motivated when they believe/expect that Their effort will yield high performance Their high performance will be rewarded The rewards are valuable to them

the context in which leadership occurs, which paved the way to contingency theories of leadership.

Because of the inconsistency of results, researchers realized the importance of

Leader expertise

Does the leader have all the information needed to make a high-quality decision? In our example, leader expertise is low. You do not have information regarding what your employees need or what kinds of stress reduction resources they would prefer.

transactional leaders

ensure that employees demonstrate the right behaviors because the leader provides resources in exchange

Importance of commitment

Does the leader need employee cooperation to implement the decision? In our example, the answer is high, because employees may simply ignore the resources if they do not like them. Follow the path through H.

achieve servant leadership

Don't ask what your employees can do for you One of your key priorities should be to help employees reach their goals Be humble Be open with your employees. Find ways of helping the external community

Basic pay

Cash wage paid to the employee. Because paying a wage is a standard practice, the competitive advantage can only come by paying a higher amount.

Managers may want to choose an expatriate when:

Company-specific technology or knowledge is important. • Confidentiality in the staff position is an issue. • There is a need for speed (assigning an expatriate is usually faster than hiring a local). • Work rules regarding local workers are restrictive. • The corporate strategy is focused on global integration/

transactional leaders use three other methods

Contingent rewards Active management by exception Passive management by exception

Effective selection and placement means

finding and hiring the right employees for your organization and then putting them into the jobs for which they are best suited

Traditionally, companies have built a competitive advantage by

focusing on what they have—structural advantages such as economies of scale, a well-established brand, or dominance in certain market segments.

What Employees Want

Employees want to grow and develop, stretching their capabilities. They want projects that engage their heads as well as their hearts, and they want to connect with the people and things that will help them achieve their professional goals

The transformational leadership approach

h highlights the importance of leader charisma, inspirational motivation, intellectual stimulation, and individualized consideration as methods of influence.

Compensation and Rewards

Evaluate and pay people based on their performance, not simply for showing up on the job. Offer rewards for skill development and organizational performance, emphasizing teamwork, collaboration, and responsibility for performance. Help employees identify new skills to develop so that they can advance and achieve higher pay and rewards. Compensation systems that include incentives, gainsharing, profit-sharing, and skill-based pay reward employees who learn new skills and put those skills to work for the organization.

Indirect pay

Everything from legally required programs to health insurance, retirement, housing, etc.

Here are two ways to provide this to your employees

First, connect people with mentors and help them build their networks. Second, help connect people with a sense of purpose. Focusing on the need for purpose is especially important for younger workers, who rank meaningful work and challenging experiences at the top of their job search lists

interviewers understand what they should not ask

First, the only times you can ask about age are when it is a requirement of a job duty or you need to determine whether a work permit is required. Second, it is rarely appropriate or legal to ask questions regarding race, color, national origin, or gender. Third, although candidates may volunteer religious or sexually-orientated information in an interview, you still need to be careful not to discriminate. Ask questions that are relevant to work experience or qualifications. Fourth, firms cannot discriminate for health or disabilities; you may not ask about smoking, health-related questions, or disabilities in an interview. Finally, you may not ask questions about marital status, children, personal life, pregnancy, or arrest record. These kinds of questions could be tempting to ask if you are interviewing for a position requiring travel; however, you can only explain the travel requirements and confirm that the requirements are acceptable.

improve your charisma by following these suggestions

Have a vision Tie the vision to history. Watch your body language Make sure that employees have confidence in themselves

Compensation plans

reward employees for contributing to company goals.

Leader decision making

How leaders make decisions & the influence of the styles on leader effectiveness and employee reactions

dictator

If a person is relying on force and punishment, the person is a

Likelihood of commitment.

If the leader makes the decision alone, what is the likelihood that the employees would accept it? Let's assume that the answer is Low. Based on the leader's experience with this group, they would likely ignore the decision if the leader makes it alone. Follow the path from L.

high emotional intelligence (EQ).

In addition to having high IQ, effective leaders tend to have

Selection and Placement

When hiring, acquaint prospective new hires with the nature of the jobs they will be expected to fulfill. This includes explaining the technical competencies needed (for example, collecting statistical data) and defining behavioral competencies. Behavioral competencies may have a customer focus, such as the ability to show empathy and support of customers' feelings and points of view, or a work management focus, such as the ability to complete tasks efficiently or to know when to seek guidance

In addition to regular pay structures and systems, companies often create special programs that

reward exceptional employee performance

Talent Management

In manufacturing, this principle is known as "make or buy." In HR, the solution is to make and buy; that is, to train some people and to hire others from the external marketplace

suggestions for writing an effective job description

List the job requirements in bullet form so that job seekers can scan the posting quickly. • Use common industry terms, which speak to knowledgeable job seekers. • Avoid organization-specific terms and acronyms, which would confuse job seekers. Use meaningful job titles (not the internal job codes of the organization). • Use key words taken from the list of common search terms (to maximize the chance that a job posting appears on a job seeker's search). • Include information about the organization, such as a short summary and links to more detailed information. • Highlight special intangibles and unusual benefits of the job and workplace (e.g., flextime, travel, etc.). • Specify the job's location (and nearest large city) and provide links to local community pages (to entice job seekers with quality-of-life information)

talent management

anticipating the need for human capital and setting a plan to meet it. It goes hand in hand with succession planning

a high level of self-awareness, motivation, empathy, and social skills

People with high EQ demonstrate

Which leadership style do you think is more effective, transformational or transactional?

Research shows that transformational leadership is a powerful influence over leader effectiveness as well as employee satisfaction

leadership emergence (whether someone is viewed as a leader by others) and leadership effectiveness.

Several of the Big Five personality traits have been related to

formal leaders

Some leaders hold a position of authority and may use the power that comes from their position, as well as their personal power, to influence others; they are called

Extraversion

Strongest trait related to leadership Being outgoing, talkative, sociable, and enjoying social situations

how employees are using the skills they've learned to attain goals, not just how many hours they've spent in training

What do HR professionals track

Decision significance

The decision has high significance because the approach chosen needs to be effective at reducing employee stress for the insurance premiums to be lowered. In other words, there is a quality requirement to the decision

Self-Esteem

The degree to which people are at peace with themselves and have an overall positive assessment of their self-worth and capabilities seems to be relevant to whether they will be viewed as a leader.

Why is transformational leadership more effective?

The key factor may be trust

to be aware that not all traits are equally effective in predicting leadership potential across all circumstances

The key to benefiting from the findings of trait researchers is

In small entrepreneurship organizations

The key to benefiting from the findings of trait researchers is to be aware that not all traits are equally effective in predicting leadership potential across all circumstances.

a focus on outcomes and results, not just numbers and compliance

The new principles of management, however, require

IQ is a threshold quality: it matters for entry- to high-level management jobs, but once you get there, it no longer helps leaders because most leaders already have high IQ

The psychologist who coined the term emotional intelligence, Daniel Goleman, believes that

What makes networks special?

Through networks, people energize one another, learn, create, and find new opportunities for growth.

Researchers started following a contingency approach to leadership—rather than trying to identify traits or behaviors that would be effective under all conditions, the attention moved toward specifying the situations under which different styles would be effective

Under which conditions are different leadership styles more effective

Workforce Scorecard has four key sequential elements

Workforce Mind-Set and Culture: Workforce Competencies Leadership and Workforce Behaviors: Workforce Success

Transformational leaders have four tools in their possession

are charismatic inspirational motivation intellectual stimulation

high-quality LMX members

are more satisfied with their jobs, more committed to their companies, have higher levels of clarity about what is expected of them, and perform at a higher level

informal leaders

are without a formal position of authority within the organization but demonstrate leadership by influencing others through personal forms of power.

A detailed interview begins by

asking the candidate to describe his work history and then getting as much background on his most recent position (or the position most similar the open position). Ask about the candidate's responsibilities and major accomplishments. Then, ask in-depth questions about specific job situations.

Sometimes called profit sharing, gainsharing is

a form of pay for performance

Fiedler's Contingency Theory

a leaders style is measured by a scale called Least Preferred Coworker (LPC) scale -think of your least preferred coworker, then rate this person in terms of friendliness, cooperation, kindness -If you can still say kind things about this LPC, you would have a high score... means you are people oriented and you work well with others -If you did not like them on a personal level, Low LPC -also means you are a task oriented person

According to Goleman, what differentiates effective leaders from ineffective ones

becomes their ability to control their own emotions and understand other people's emotions, their internal motivation, and their social skills (Goleman, 2004).

legal restrictions on how purely subjective the reasons for firing can be.

if the organization has written hiring and firing procedures and does not follow them in selective cases, then those cases might give rise to claims of wrongful termination. Similarly, in situations where termination is clearly systematic, for example, based on age, race, religion, and so on, wrongful termination can be claimed.

transformational leaders

increase the intrinsic motivation of their followers, build more effective relationships with employees, increase performance and creativity of their followers, increase team performance, and create higher levels of commitment to organizational change efforts

future-oriented situation

interview questions ask candidates to describe how they would handle a future hypothetical situation, such as: "Suppose you came up with a faster way to do a task, but your team was reluctant to make the change. What would you do in that situation?"

Diversity Management

involves actively appreciating and using the differing perspectives and ideas that individuals bring to the workplace

Active management by exception

involves leaving employees to do their jobs without interference, but at the same time proactively predicting potential problems and preventing them from occurring

A bonus

is a one-time cash payment, often awarded for exceptional performance.

Succession planning

is a process whereby an organization ensures that employees are recruited and developed to fill each key role within the company.

HPWS

is a set of management practices that attempt to create an environment within an organization where the employee has greater involvement and responsibility.

Direct pay

is an employee's base wage. It can be an annual salary, hourly wage, or any performance-based pay that an employee receives, such as profit-sharing bonuses.

Diversity

is an invaluable contributor to innovation and problem-solving success helps company teams to come up with more creative and effective solutions.

A partnership team

is formed around a joint venture or strategic alliance. Here, profit sharing in the venture is the most common pay structure

Strategic human resource management (SHRM)

is not just a function of the HR department—all managers and executives need to be involved because the role of people is so vital to a company's competitive advantage In addition, organizations that value their employees are more profitable than those that do not

Passive management by exception

is similar in that it involves leaving employees alone, but in this method, the manager waits until something goes wrong before coming to the rescue.

Trust

is the belief that the leader will show integrity, fairness, and predictability in his or her dealings with others.

human capital.

is the collective sum of the attributes, life experience, knowledge, inventiveness, energy and enthusiasm that its people choose to invest in their work

human capital

is the set of skills that you have acquired on the job, through training and experience, and which increase your value in the marketplace.

Fiedler's theory's biggest contribution may be

it highlights the importance of a leader's ability to change styles, depending on the circumstances. House's path-goal theory underlines the importance of varying one's style, depending on the situation."

to be viewed as leaders in their environment

people who have high mental abilities are more likely

Companies that measure intangibles such as employee performance, innovation, and change

perform better financially than companies that don't use such metrics.

Leader-Member Exchange (LMX) Theory

proposes that the type of relationship leaders have with their followers (members of the organization) is the key to understanding how leaders influence employees.

Supportive leaders

provide emotional support. Encouraging, know them on a personal level. Effective when employees are stressed or performing boring jobs

Directive leaders

provide specific directions to their employees. They lead employees by clarifying role expectations, setting schedules, and making sure that employees know what to do on a given workday. The theory predicts that the directive style will work well when employees are experiencing role ambiguity on the job.

General mental ability

psychologists refer to as "g" and which is often called IQ in everyday language, has been related to a person's emerging as a leader within a group

Big Five Model

rates an individual according to openness to experience, conscientiousness, extraversion, agreeableness, and Neuroticism.

Charisma

refers to behaviors leaders demonstrate that inspire confidence, commitment, and admiration toward the leader

Job Design

refers to the process of putting together various elements to form a job, bearing in mind organizational and individual worker requirements, as well as considerations of health, safety, and ergonomics

Parallel teams are

teams that exist alongside (parallel to) an individual's daily job.

people who are effective as leaders

tend to have a moral compass and demonstrate honesty and integrity

Enthusiasm for the job requires more than having a good attitude about receiving good pay and benefits—it means

that an employee's goals and aspirations also match those of the company. Therefore, it's important to identify employees' preferences and mutually assess how well they align with the company's strategy.

having consistent talent evaluation means

that employees around the world are evaluated on the same standards. This is important because it means that if an employee from one country transfers to another, his or her manager can be assured that the employee has been held to the same level of skills and standards.

All the elements of HR—selection, placement, job design, and compensation—need to be aligned with the company's strategy so

that the right employees are hired for the right jobs and rewarded properly for their contributions to furthering the company's goals.

Leadership

the act of influencing others to work toward a goal

low-quality LMX relationships

the leader and the member have lower levels of trust, liking, and respect toward each other. These relationships do not have to involve actively disliking each other, but the leader and member do not go beyond their formal job descriptions in their exchanges.

the transactional leadership approach

the leader focuses on getting employees to achieve organizational goals. According to leader-member exchange (LMX) approach, the unique, trust-based relationships leaders develop with employees is the key to leadership effectiveness.

high-quality LMX relationships,

the leader forms a trust-based relationship with the member. The leader and member like each other, help each other when needed, and respect one another. In these relationships, the leader and the member are both ready to go above and beyond their job descriptions to promote the other's ability to succeed.

House's path-goal theory states that

the leader's job is to ensure that employees view their effort as leading to performance and increase the belief that performance would be rewarded

attracting the right workers

the ones who will be enthusiastic about their work.

In gainsharing

the organization shares the financial gains with employees. Employees receive a portion of the profit achieved from their efforts. How much they receive is determined by their performance against the plan

succession planning

the process whereby an organization ensures that employees are recruited and developed to fill each key role within the company

transformational leaders rely on

their charisma, persuasiveness, and personal appeal to change and inspire their companies

situational interviews

these types of interviews can focus on past experience or future situations

When organizations enable, develop, and motivate human capital,

they improve accounting profits as well as shareholder value in the process

Pay-for-performance plans

tie an individual's pay directly to his or her ability to meet performance targets. These plans can reward individual performance or team performance or a combination of the two.

pay for performance

ties pay directly to an individual's performance in meeting specific business goals or objectives

job evaluation

to determine the internal value of the job—the more vital the job to the company's success, the higher the pay level

Human resources management is becoming increasingly important in organizations because

today's knowledge economy requires employees to contribute ideas and be engaged in executing the company's strategy.

Assigning metrics to the activities lets managers

track progress on goals and ensure that they are working toward strategic objectives.

such as intelligence (both mental ability and emotional intelligence), personality (extraversion, conscientiousness, openness to experience, self-esteem), and integrity

traits are consistently related to leadership

agreeable people who are modest, good natured, and avoid conflict are less likely to be perceived as leaders

traits that are negatively related to emerging as a leader and being successful as a leader

Contemporary approaches to leadership include

transformational leadership, leader-member exchange, servant leadership, and authentic leadership.

A high-performance work system

unites the social and technical systems (people and technology) and aligns them with company strategy. It ensures that all the interrelated parts of HR are aligned with one another and with company goals.

Kenneth Blanchard and Paul Hersey's Situational Leadership Theory (SLT)

which argues that leaders must use different leadership styles depending on their followers' development level says employees readiness (defined as a combination of their competence and commitment levels) is the key factor determining the proper leadership style. -recognizes that followers are a key to a leader's success

charismatic leadership

which is among the contemporary approaches to leadership, may be viewed as an example of a trait approach.

intellectual stimulation

which means that they challenge organizational norms and status quo, and they encourage employees to think creatively and work harder.

individualized consideration

which means that they show personal care and concern for the well-being of their followers.

war for talent

which reflects competition among organizations to attract and retain the most able employees

task-oriented leaders

would be most effective when the situation was the most and the least favorable

Managers may want to staff the position with a local hire when:

• The need to interact with local customers, suppliers, employees, or officials is paramount. • The corporate strategy is focused on multidomestic/market-oriented operations. • Cost is an issue (expatriates often bring high relocation/travel costs). • Immigration rules regarding foreign workers are restrictive. • There are large cultural distances between the host country and candidate expatriates

"major critical success indicators"

• cost to produce kilowatt hour • customer satisfaction • fossil plants availability • operations and maintenance expenditures • construction expenditures • ranking as corporate citizen in Arizona • safety all-injury incident rate • nuclear performance • shareholder value return on assets

administrative tasks are being done online, including:

• providing and describing insurance and other benefit options • enrolling employees for those benefits • enrolling employees in training programs • administering employee surveys to gauge their satisfaction