Management Exam 2

3 core elements of those (management) principles include:

-1. Better understanding the activities of the business by using a Business Process Management (BPM) perspective of the work that is done. -2. Using Business Measurement, Assessment, and Evaluation in order to understand how well the organization is performing those processes and how well they are achieving their overall goals. -3. Assigning individuals with expertise in utilizing proven Business Improvement Methods & Tools to lead improvement initiatives that address performance gaps or other opportunities identified in business evaluations.

Contingency Leadership Theory: Fiedler identified three main contexts that are important for evaluating the effectiveness of leaders

-1. Leader-Member (followers) Relations (LMR) - the extent to which followers like, trust, and are loyal to their leader. (Explanation: the relationship with followers is "poor" when subordinates neither like nor trust their leader, and would not remain loyal to him/her) -2. Task Structure - the extent to which the work performed is clear such that subordinates know what needs to be accomplished and how to accomplish it. (Explanation: when Task Structure is "low", goals are usually vague, and subordinates are unsure of what they should be doing or how to do it.) -3. Position Power - the amount of legitimate, reward, and coercive power a leader has by virtue of his or her position in an organization. (Explanation: the power is "weak" when the leader does not have any of these forms of influence over subordinates)

7 primary causes of waste are identified as part of the Lean method. These are

-1. Overproduction (producing more products or components than are currently required to meet demand), -2. Correction (having to rework a defective output of a process), -3. Inventory (the need to store output until it is required), -4. Motion (the need for excessive movement of materials and/or people as part of performing a process), -5. Conveyance (similar to motion in terms of requiring a component of the process to be transported some distance for further processing), -6. Overprocessing (performing steps in a process that do not create value for the customer or the converter), -7. Waiting (not having parts or people available when required to perform the next step in the process). The Lean Methodology minimizes these seven causes of waste. By using tools like the Lean Value Map described in Topic 10.2 in this chapter, organizations are able to identify areas of waste in the process and use Lean tools to reduce or remove those wastes.

3 major things that successful organizations do differently

-1. Role of Leadership - Leadership plays a proactive role in overseeing the prioritization, selection, and routine monitoring of improvement projects. This involvement by leadership reinforces the importance of these projects and helps ensure that necessary time and resources are being allocated to them. In addition, leaders also make sure that appropriate recognition is given to members of the organization who successfully deliver improved results from their projects. -2. Role of Business Improvement Experts - Highly trained and experienced improvement experts are used to manage key improvement projects. Managing an improvement project, like managing most activities, requires knowledge, skill and experience. These unique set of characteristics for managing improvement projects are not commonly found in line managers nor is it easy for them to dedicate the time necessary to lead an improvement project while also performing their other responsibilities. -3. Use of Proven Improvement Methods and Tools - These "experts" use proven improvement methodologies and tools as a key part of their approach. When used properly in improvement projects, these methods and tools save a lot of time in organizing a project and executing the steps necessary to complete it successfully. In addition, these methods and tools have proven to deliver high project success rates

Behavior-Based Leadership Theory: The major outcome of this initial research was to identify two major categories of behavior:

-1. Task-Oriented Leadership: Leaders who primarily focus on the tasks to be done -2. Person-Oriented Leadership: Leaders who primarily focus on building relationships with others in the organization including subordinates Building off of this research the following related - but more specific - styles of leadership have been identified: 1. Charismatic Leadership: influences others through an engaging, persuasive, and attractive personality 2. Servant Leadership: builds support from subordinates by proactively supporting them in performing their roles successfully -3. Transformational Leadership: seeks to make significant change to the organization through espousing the vision, the goals, the plan, and the tasks to move in a new direction, as well as to communicate a persuasive rationale for changes, while seeking to link subordinates' identity and self-interest to achievement of the goals in order to gain their support -4. Strategic Leadership: focuses on the vision and the strategies necessary to fulfill that vision for the organization while persuading subordinates to take the initiative to develop and implement the plans necessary to execute the strategies -5. Empowerment-Oriented Leadership: enables subordinates by providing them with the resources and authority to autonomously develop and execute plans aligned with the goals of the organization -6. Transactional Leadership: uses rewards and punishments and other forms of authoritative power to encourage desired behaviors from subordinates

strive

-Are motivated and exert effort toward success in their job and for the company -This organization inspires me to do my best work every day -This organization motivates me to contribute more than is normally required to complete my work

levels of Organization Culture include the following (listed from most easily observable to least easily observable):

-Artifacts -Values -Assumptions --can help an organization to better understand its current culture--

Dimensions of Culture -

-Content -Consensus -Intensity of feelings

Equal Employment Opportunity

-Essentially the laws covering this area are designed to deter employers from dis-criminating against protected classes of workers in their hiring and treatment of these employees. --Organizations are prohibited from discriminating against job candidates and workers based on race, religion, color, gender, or national origin (Equal Employment Opportunity Act of 1972 or EEOC and the Civil Rights Act of 1964). This protected class of workers was expanded to include prohibitions against discrimination based on age specifically for workers over the age of 40 (Age Discrimination Act of 1967 as amended in 1978 and 1984) and also included a provision making it illegal to have a mandatory retirement age. The protected class of employees was further expanded to include those employees with physical or mental disability (Vocational Rehabilitation Act of 1973 and the American with Disabilities Act, or ADA, of 1990) and included the requirement for employers to provide reasonable accommodations to allow disabled employees to work -One of the identified violations of the Civil Rights Act of 1964 is Sexual Harassment.

stay

-Have an intense sense of belonging and desire to be part of the organization -It would take a lot to get me to leave this organization -I rarely think about leaving this organization to work somewhere else

Well Dressed

-In less sophisticated settings, basic measurement charts can be used to evalu-ate how effective a process is performing and identify outputs that do not meet customer requirements. They can also measure the efficiency of the process and identify areas in need of better cost control. In order for these measures to provide useful information the measurement charts should be "Well Dressed". -A "Well Dressed" measure is the concept of having measurement charts that include all the information necessary to allow for rapid, complete, and accurate interpretation of the data presented. "Well Dressed" measures include the following: -Title: Clearly labeled at top of chart indicating what is being measured -Goal: Clear indication of the target performance -Min: Clear indication of the minimum acceptable performance -Results: Clear indication of current and past performance -Competitor: Clear indication of competitor's performance -Benchmark: Clear indication of world-class standard of performance -Axes: Clearly labeled to indicate what is measured and in what time frame -Performance Status: Color-coded indicator of whether the performance is meeting standards (green), needs immediate improvement (yellow), or is seriously deficient (red) -Owner: Name of person responsible for producing chart -Updated: Date chart was most recently updated with data -Projects/Impact/Project Mgr: Description of what actions are being taken to address yellow or red performing processes, the current status of those actions, what those actions are intended to deliver, when they are expected to be completed, and who is responsible for leading those actions. -The purpose of creating a "Well Dressed Measure" is to provide all the information a manager needs to quickly determine and properly evaluate the status of a key aspect of performance in the organization as well as to understand what related initiatives are under way and their expected impact on improving that performance. Creating measurement charts in this format provides a valuable tool for helping managers understand if they are getting work "Done Well" (or not!)

Summary Chp 11

-Management vs. Leadership is likely to continue to be debated in academic and professional literature. Clearly, there is at least a significant overlap between these two aspects of organizational roles and many definitions of the role of management include leadership as a key component. -Academic research has advanced the understanding of the topic of leadership through development of multiple theories but unfortunately it has been difficult to create strong links between the theories and actual leadership performance. The explanation for this dilemma appears to be the importance of the "context" or situation in which the leader is operating and its significant impact on leadership performance. It also is complicated by the challenges of measuring a leader's performance given all the other factors that could impact on that performance besides the leader's traits or behavior. While early research identified intelligence as an important factor for leadership success, more recent research suggests that emotional intelligence may actually be more important than traditional forms of intelligence in predicting leadership success.

3 traits seem to differentiate people in leadership roles from others:

-Physical Energy, -Intelligence greater than the average of followers led, and -Prosocial Influence (the tendency to focus on helping others and society as a whole).

3 observable employee behaviors - Say, Stay, and Strive. (Aon Hewitt identified this)

-Say: Employees speak positively about the organization to coworkers, potential employees, and customers -Stay: Employees have an intense sense of belonging and desire to be part of the organization -Strive: Employees are motivated and exert effort toward success in their job and for the company

say

-Speak positively about the organization to coworkers, potential employees, and customers -I would not hesitate to recommend this organization to a friend seeking employment -Given the opportunity, I tell others great things about working here

4 steps to Managing an Employee Engagement Improvement Initiative:

-Step 1 - Define and communicate what Employee Engagement means for the organization and why it is important to increase the levels of engagement (identify the benefits employees and the organization can expect from this initiative). -Step 2 - Measure the current level of Employee Engagement. Based on measurement results and an understanding of the key drivers of Employee Engagement, identify and prioritize the initiatives that are most likely to improve employee engagement levels. Set improvement goals for each initiative and for overall Employee Engagement levels. -Note: To do this properly, both employee attitudes and employee behaviors must be measured. This requires multiple methods of measurement be used to get a comprehensive understanding of current levels of Employee Engagement including employee surveys, focus groups, and observations of employee behaviors. -Step 3 - Develop the action plan for improving each identified priority based on proven approaches for effecting the known key drivers of Employee Engagement. Routinely monitor progress and make any necessary corrections. Confirm that the improvements implemented are resulting in achieving the target improvement goals established in Step 2. Confirm the organization is realizing the expected benefits of an increased level of Employee Engagement overall as a result of the collective improvement efforts. -Step 4 - Reward and recognize those involved in the improvement initiatives and communicate to the organization the progress that was made to improve Employee Engagement levels -Note: It is important to communicate and discuss the success of the improvement initiatives with the organization. By taking this last step, leadership reinforces the value and importance of improving Employee Engagement for both employees and the organization

weak culture

-There is not always a single culture that exists within an organization. -the lack of uniformity around the key aspects of culture --When cultures are weak, the organization may have difficulty motivating employees to support the organization's Core Values, Goals, and Strategies. In addition, personal conflicts within the organization may be more frequent and more difficult to resolve as they may be more deeply rooted in the underlying differences in and organization's culture. When we are talking about weak Organization Culture it is important to recognize that we are not talking about cultural differences that exist because of ethnic, religious, gender, or other types of identity differences that are common among employees in an organization. While these differences can potentially create social clusters within an organization, successful organizations are still able to align all employees in support of the organization's Core Values, Goals, and Strategies. They accomplish this by encouraging employees to see broader cultural differences as an important aspect of having a diverse organization; an organization that values and respects diversity. In this way, organizations reduce the risk that these broader cultural differences will lead to cultural schisms and lack of alignment.--

Health and Safety

-These laws establish mandatory safety and health standards in organizations which are administered by an organization of the federal government - the Occupational Safety and Health Administration or OSHA (Occupational Safety and Health Act of 1970) -Maintaining an organization's compliance with these employment-related laws requires having well established procedures for conducting each of the four major activities coordinated by the HR function (recruitment and selection, training and development, compensation and benefits, and employee relations). HR organizations need to stay up to date with any changes to these laws and how they are being interpreted by the courts. They also need to make sure that managers and employ-ees are fully aware of their responsibilities for compliance with these laws. It is common today for training programs regarding compliance with these laws to be mandatory and conducted online with verification of participation by each employee. The costs of non-compliance can be severe making it more than worth-while to ensure that all employees are properly trained and understand their individual responsibilities for complying with the laws. -is not only the "Right" thing to do but the "Smart" thing to do!

Well Dressed measures include the following:

-Title: Clearly labeled at top of chart indicating what is being measured -Goal: Clear indication of the target performance -Min: Clear indication of the minimum acceptable performance -Results: Clear indication of current and past performance -Competitor: Clear indication of competitor's performance -Benchmark: Clear indication of world-class standard of performance -Axes: Clearly labeled to indicate what is measured and in what time frame -Performance Status: Color-coded indicator of whether the performance is meeting standards (green), needs immediate improvement (yellow), or is seriously deficient (red) -Owner: Name of person responsible for producing chart -Updated: Date chart was most recently updated with data -Projects/Impact/Project Mgr: Description of what actions are being taken to address yellow or red performing processes, the current status of those actions, what those actions are intended to deliver, when they are expected to be completed, and who is responsible for leading those actions. -The purpose of creating a "Well Dressed Measure" is to provide all the information a manager needs to quickly determine and properly evaluate the status of a key aspect of performance in the organization as well as to understand what related initiatives are under way and their expected impact on improving that performance. Creating measurement charts in this format provides a valuable tool for helping managers understand if they are getting work "Done Well" (or not!)

Performance Management

-is the delivery of superior results through ongoing measurement, assessment, evaluation, and improvement of the organization. -a key part of the culture of the organization and by adopting a set of Management Principles -is based on a set of Performance Management Principles. -helps organizations to get the work "Done Well" by continually improving the effective-ness and efficiency of the organization leading to superior results.

Business Evaluation

-is the process of collecting and analyzing external and internal business data, assessing overall business performance, and identifying and prioritizing opportunities for improvement.-- -Measurement data from a Balanced Scorecard supported by more detailed data from effectiveness and efficiency measures at the process level provide key inputs to the Business Evaluation process. Periodic Business Assessments also provide fur-ther insight into overall business performance. Collectively this data combined with sound analysis and managerial judgment are the key inputs for conducting periodic Business Evaluations that include developing a list of improvement opportunities and reaching consensus as a leadership team on the highest priorities. Having selected a set of improvement priorities, management needs to make sure those initiatives are properly supported and resourced. The role of leadership in man-aging business improvement is discussed further in the next section (Topic 10.4) in this chapter.

2 key aspects of Employee Engagement:

-state of mind -positive and productive

BCG suggests

-that there may be a need to have multiple sub-cultures in an organization. For example, the sub-culture for the research department may be different from the one for the finance department. Sub-cultures may also differ by business units in the organization. For example, a pharmaceutical division may require a different sub-culture than a consumer products division that are both part of the same organization. -Once the organization has established a "Target Organization Culture" how does it go about effectively changing its current culture to move closer to the "Target"? -Boston Consulting Group suggests there are seven "critical levers" that influence employee behavior and shape organizational culture -Using these seven "Critical Levers" the organization can move towards imple-menting its "Target Organization Culture".

styles of leadership have been identified:

1. Charismatic Leadership: influences others through an engaging, persuasive, and attractive personality 2. Servant Leadership: builds support from subordinates by proactively supporting them in performing their roles successfully 3. Transformational Leadership: seeks to make significant change to the organization through espousing the vision, the goals, the plan, and the tasks to move in a new direction, as well as to communicate a persuasive rationale for changes, while seeking to link subordinates' identity and self-interest to achievement of the goals in order to gain their support 4. Strategic Leadership: focuses on the vision and the strategies necessary to fulfill that vision for the organization while persuading subordinates to take the initiative to develop and implement the plans necessary to execute the strategies 5. Empowerment-Oriented Leadership: enables subordinates by providing them with the resources and authority to autonomously develop and execute plans aligned with the goals of the organization 6. Transactional Leadership: uses rewards and punishments and other forms of authoritative power to encourage desired behaviors from subordinates

3 common Organizational Structures are

1. Functional Structure 2. Divisional Structure 3. Matrix Structure

3 main contexts that are important for evaluating the effectiveness of leaders: (identified by Fiedler

1. Leader-Member (followers) Relations (LMR) - the extent to which followers like, trust, and are loyal to their leader. (Explanation: the relationship with followers is "poor" when subordinates neither like nor trust their leader, and would not remain loyal to him/her) 2. Task Structure - the extent to which the work performed is clear such that subordinates know what needs to be accomplished and how to accomplish it. (Explanation: when Task Structure is "low", goals are usually vague, and subordinates are unsure of what they should be doing or how to do it.) 3. Position Power - the amount of legitimate, reward, and coercive power a leader has by virtue of his or her position in an organization. (Explanation: the power is "weak" when the leader does not have any of these forms of influence over subordinates)

4 key drivers of employee engagement

1. Leaders who are committed to making their organizations great places to work and who make it clear they greatly value their employees. They reinforce this by linking the employee's future success to the organization's future success through meaningful investments in their employee's development and growth. In addition, the leaders earn the trust of their employees who believe the organization is headed in the right direction and that they will be treated fairly. 2. Managers who engender good relationships with their subordinates and provide them with meaningful, well-designed job roles. They also provide the authority, autonomy, resources, training, and support to accomplish those jobs well and provide appropriate recognition and rewards for doing so. 3. Culture in the organization is cultivated to create a positive environment based on trust and respect, collegiality, open communication, pleasant working conditions, flexibility, collaboration, and a positive reputation. 4. Human Resource Practices that ensure fair performance review processes, fair compensation and benefits, work/life balance policies, employee support programs, diversity and inclusion initiatives, and a safe work environment.

The Baldrige Framework has 7 categories to be evaluated as part of an assessment of the organization. These categories are:

1. Leadership 2. Strategy 3. Customers 4. Measurement, Analysis, and Knowledge Management 5. Workforce 6. Operations 7. Results -Organizations can use business assessments, like the Baldrige framework, to help identify strengths and weaknesses in performance. The assessment evaluates both business results and how well key business processes are managed. The results of an assessment help management identify improvement opportunities.

7 categories to be evaluated as part of an assessment of the organization (Baldrige Framework )

1. Leadership 2. Strategy 3. Customers 4. Measurement, Analysis, and Knowledge Management 5. Workforce6. Operations 7. Results -Organizations can use business assessments, like the Baldrige framework, to help identify strengths and weaknesses in performance. The assessment evaluates both business results and how well key business processes are managed. The results of an assessment help management identify improvement opportunities.

5 common approaches used by organizations:

1. Organizational Structure 2. Liaisons 3. Task Forces 4. Cross Functional Teams 5. Integrating Roles

2 major categories of behavior:

1. Task-Oriented Leadership: Leaders who primarily focus on the tasks to be done 2. Person-Oriented Leadership: Leaders who primarily focus on building relationships with others in the organization including subordinates

examine each of these concepts in a little more depth.

1. The Importance of Preparation To effectively negotiate requires understanding what your goals and target outcomes are for the negotiation, what issues are important to you and your business as the manager, what are your sources of power for persuading the other side, what alternatives do you have to making a deal with this person/ organization, and what can you offer and what do you plan to offer to the other side as incentives for achieving your ideal outcome. 2. Understanding the Source of Power in Negotiations The source of power in a negotiation often derives from understanding your BATNA or Best Alternative to a Negotiated Agreement. According to Fisher & Ury, two renowned researchers in negotiation, if a proposed deal does not meet or exceed the value that could be gained from your BATNA, then no deal should be reached. Cohen, et. al. discuss the "Agreement Trap" where there is a bias towards reaching an agreement even when the BATNA offers a supe-rior outcome. Sometimes this occurs because of irrational escalation of com-mitment. This concept described by Bazerman and Neale occurs when the participant in a negotiation invests considerable time and effort in ongoing negotiations and/or defends the importance of reaching an agreement with others leading to a sense of commitment to making a deal. Because of these "investments", the negotiator may be inclined to make any deal even when that deal may not be in their best interest or the interests of the organization they represent. 3. The Distinction Between Positions and Interests Positions are the stated requirements of a party to a negotiation. Interests go beyond those statements to the underlying goals that could be achieved from the two parties reaching an agreement. The process starts by clearly under-standing your own interests and goals. This should be followed by a search for understanding the interests of the other party. This requires the ability to see the opportunities and satisfaction of interests that a negotiated agreement might provide from the other party's perspective. Asking the other party what they might want to accomplish, what needs they may have that they are hoping to address, or what alternatives they are considering, can help to unlock a better understanding of these "interests" and by so doing, lead to an expanded set of options to consider in structuring an agreement. 4. The Tension Between Creating Value and Claiming Value Negotiations are often approached as win-lose outcomes with the better negotiator getting the better outcome. This perspective to negotiating is about "claiming value" or optimizing the outcome in favor of one's self at the expense of the other party. In a negotiation with the goal of "creating value", options are considered that maximize the mutual benefit of the par-ties often in a way that results in both parties being better off than either party would have been in a win-lose negotiation. This can be accomplished by trading things that may be of less value to you but of greater value to the other party in return for the things you value most. In this way, both parties wind up better off.

key concepts will help improve a manager's negotiating skills. These include:

1. The importance of preparation 2. Understanding the source of power in negotiations 3. The distinction between positions and interests 4. The tension between creating value and claiming value

There is general agreement that Leadership Effectiveness is measured in two ways:

1. The overall performance of the organization for which the leader is responsible 2. The satisfaction of primarily the subordinates who report to the leader (though some researchers argue that satisfaction of the leader's peers and boss/bosses should also be included in this measure)

2 ways leadership effectiveness is measured

1. The overall performance of the organization for which the leader is responsible 2. The satisfaction of primarily the subordinates who report to the leader (though some researchers argue that satisfaction of the leader's peers and boss/bosses should also be included in this measure)

3 major areas that federal laws that govern the employment practices of organizations

A. Equal Employment Opportunity B. Compensation and Benefits C. Health and Safety

5 Key activities typically coordinated by the Human Resources (HR) Function:

A. Recruitment and Selection B. Training & Development C. Performance Appraisal & Feedback D. Compensation & Benefits E. Employee Relations --Collectively, these five activities are intended to allow the organization to attract, develop, and retain the talent necessary to achieve the organization's goals and to support the organization's strategy, core values and desired culture.

Business Assessment:

Another approach to evaluating business performance at the organizational level is the use of a comprehensive Business Assessment. The National Institute of Stan-dards and Technology (NIST), an agency of the Commerce Department of the United States Government, is responsible for the development and management of the Malcolm Baldrige business assessment framework. This framework includes a set of comprehensive criteria for conducting assessments of organizations across multiple business sectors. Organizations that have made substantial progress in meeting the standards that are part of the criteria can apply for national recognition as part of the Malcolm Baldrige Awards Program.

Reality Checks

Because of the challenges and time involved in finding and recruiting qualified talent, it is not uncommon for organizations to seek "shortcuts" rather than using a pre-established fair and objective process. These shortcuts often include having the desired person in mind when a position becomes open and essentially "going through the motions" to accelerate the process to eventually hire this pre-selected individual. Factors that encourage shortcuts are when the person responsible for making the hiring decision has prior working experience with an individual and thus knows the person is hard-working and loyal. In other "shortcut" cases - personal friend-ships, recommendations from senior employees, and other considerations that are not directly related to a candidates qualifications can unduly influence a hiring man-ager's judgment about who to hire and can diminish their willingness to adhere to the formally established processes. These cases raise an ethical question as to the fair treatment of the other candidates. These candidates believe they will be given equi-table consideration when participating in the recruitment process. Clearly this does not occur when the hiring decision has already been made before the process starts. Another important Reality Check occurs when the organization does not have in-depth familiarity with a candidate they would like to hire. It is important in these situations that the organization make a concerted effort to conduct background checks to make sure the employee has been honest in their interviews and provided accurate information in their resume. As we will discuss in Topic 8.3, there are some legal and ethical considerations that may limit the breadth of information that can and should be sought in performing this background check. Legal considerations can also discourage many previous employers of the job candidates to provide any information beyond verification that the candidate worked at their company during a stated timeframe. Further, relying solely on candidate provided references can also be unreliable as it is difficult to verify the authenticity of these references and they may be favorably biased towards the candidate given the candidate is the one who selected them.

BCG

Boston Consulting Group (suggests that there are seven "Dimensions of Culture"). According to BCG, an organization should set targets for each "Dimension" to best align with its Strategy. Below is an example of how an organization might set targets for each dimension.

Methods of Communication

Communications can be conveyed in verbal form (speech, discussion, statement, casual conversation, etc.) or written form (email, text message, letter, posted announcement via social media, podcast, etc.) Communication also occurs in non-verbal forms through postures, gestures, facial expressions, attire, eye contact (or not), or other ways.

Summary Part 1 Chapter 7

Creating productive and meaningful jobs is the goal of Job Design and an essential element of good Organization Design. Finding the balance between specializing jobs to maximize efficiency and effectiveness and creating meaningful jobs so that employees are satisfied and motivated to perform those jobs, is the challenge man-agers face in designing jobs to get the "Right Work, Done Well!"

2 frequently used and very effective methods and tools are :

DMAIC/Six Sigma and Lean Methodology

important to understand that Employee Engagement goes beyond efforts to achieve high levels of employee loyalty, motivation, or satisfaction.

Employees may not want to leave a job (loyalty), even if they dislike their job. This may be because the pay and benefits are good and/or they like the hours, or they don't have the motivation to go through the hassle to find a better job. Likewise, an employee may be "motivated" and have good intentions but never convert that motivation into action (behavior). Even though they may want to help the business do better, they may not know what to do or how to do it. Finally, employees may be "satisfied" with their employment, but this may be because their job doesn't require them to work very hard or because they have friends that work at the same place and not neces-sarily due to any sense of self-esteem or well-being associated with the organization or their job itself. In each of these scenarios (loyalty, motivation, satisfaction) only a partial positive state of mind is being created, and consequently, it is not resulting in positive and productive behavior as demonstrated by discretionary effort put forth by the employee.

Why is this notion of "process" important to management

Essentially, all work performed in an organization is a process. The ability of a manager to effectively and efficiently design, develop, improve, and manage processes is a key aspect of the managerial role and an essential skill for getting work "Done Well". The concept of process is most easily understood when thinking of making a product. In a donut shop, for example, dough, sugar, water, a recipe, a donut maker, tools and equipment, a shop in which to make the donuts, workers, and some other components are the inputs to the donut making process. The conversion involves taking those inputs and following a set of prescribed steps to convert the inputs into donuts to be sold to customers. The outputs of the process are donuts.

Using this model, the effectiveness of character traits and behavior-based leadership styles of the leader are modified by the "Context" in which the leader must operate

Fiedler then combined the analysis of these three "contexts" to determine if the leadership situation overall is favorable or unfavorable. Fiedler found that in unfa-vorable situations (poor LMR, low task structure, and weak position power), the posi-tive leadership Character Traits are less effective than in favorable situations. Fiedler further uses the model to address the Behavior-Based leadership theories and finds that relationship (person)-based behaviors are most effective in moderately favor-able leadership situations, whereas task-oriented leaders are most effective in very favorable as well as very unfavorable leadership situations (both extremes). See the chart below for a depiction of these results.its and Behaviors are dependent on the specific situation (context) facing the leader. This is a similar conclusion to what we learned from the study of the Evolu-tion of Management in Chapter 2, where it was evident that management practices changed as the situations facing managers changed such that any given manage-ment practice may not be effective under different conditions. The significance of "Leader/Follower" Relations was further studied by Fiedler with the following findings: In high stress situations (when leader/follower relations are strained or the organization is struggling to achieve its goals), a leader's use of their experience is more important than use of their intelligence to effectively deal with the stressful environment. Conversely, in low stress situations (where leader/ follower relations are positive and the organization is performing well), use of the leader's intelligence is more effective. More recently "Leader/Follower(Member)" relations has been expanded to include more emphasis on the "interactions" between the leader and followers and not just the overall relationship. This theory is called Leader Member Exchange or LMX. The major difference in this research is the expanded analysis of the profile of the follower (subordinate) and how the types of interactions between the leader and the follower can influence the relationship. An example of the implications of these theories might be helpful. Marsha is bright young, but inexperienced manager who was put in a leadership role over older, more experienced workers who are upset about the prospect of working for this newly appointed inexperienced leader. If the task structure in the organization is unclear and Marsha is given limited position power due to being relatively new and relatively inexperienced, she may start with strained relationships with her new direct reports and it will be very difficult for her to be effective in her leader-ship role regardless of her Character Traits or her Behavior-Based approach. Unfor-tunately, the "context" of her situation is likely to make it very difficult for her to be an effective leader. Leah, on the other hand, is the newly appointed leader of a department she has worked in for several years. She is admired for her intelligence, expertise, cama-raderie, and willingness to help others. Everyone in the department likes her and they were happy when she was selected to be the new leader. Employees in the department recognize that the leader has the primary authority for determining performance evaluations, raises, and recommendations for promotion. Prior lead-ers have put ineffective workers on probation and even ultimately dismissed one employee who was continually underperforming. The work the department does is well-defined with clear responsibilities and expectations for each employee's role. It is a collaborative approach to getting the job done. Leah is likely to be able to use her leadership skills effectively in her new role. The "context" of her situation is very favorable for success

Efficient Processes:

For a process to be efficient the manager must first operate the process effectively (obtain desired customer behaviors). Unless the process is delivering the required outputs, by definition it cannot be efficient because the output is not creating value for the customer of the process and therefore the costs of any outputs created, no matter how minimal, are wasted costs until the process can deliver effectively. Once the process is effective, in order for it to be efficient it must operate at a cost that allows the organization to realize an adequate return on the capital employed to run the process (allows the organization to be profitable). Thus, for a process to create value for the converter (the donut shop), and therefore to be an Efficient Process, it must be an Effective Process that also generates an adequate return on the capital employed to operate the process

what are the benefits to an organization of having high Employee Engagement levels?

Gallup reports that organizations that are best in engaging their employees achieve earnings-per-share growth rates "that are more than four times that of their competitors". Their analysis also finds that "Compared with business units in the bottom quartile, those in the top quartile of engagement realize substantially bet-ter customer engagement, higher productivity, better retention, fewer accidents, and 21% higher profitability. Engaged workers also report better health outcomes." Aon Hewitt, a major consulting firm specializing in human resource management, has conducted analysis using their client base and reported similar positive results, "In our database of over 8 million employees across organizations, we find that the companies with top quartile engagement levels (72% or above) have 50% higher total shareholder return (TSR) than the average company". Thus, achieving higher levels of Employee Engagement leads to better outcomes for the organization as well as the employee.

Contingency Leadership Theory:

Given the limitations of Character Traits theory and Behavior-Based theory in predicting Leadership Effectiveness, researchers tried to better understand the reasons for these limitations. Fred E. Fiedler put forth the "Contingency Theory" that suggested each of these prior theories were likely dependent on not only the characteristics or behaviors of the leader but also the leader's "situation" or "con-text".

2 researchers

Hackman and Oldham did extensive studies on factors that affect workers and created the "Job Characteristics Model" to better explain how job design can impact employee satisfaction and job performance.

Cautious vs Risk Permitting:

How much does the organization support risk taking?

Structured vs Flexible:

How specifically are processes and acceptable behaviors defined? How closely are they followed in practice

Diplomatic vs Direct:

How transparent are interactions and communications between workers and managers?

Summary of Chapter 8

Human Resources Management is critical for developing a skilled and motivated workforce. Such a workforce is essential for getting work "Done Well"!

Types and Purpose of Communication

In business there are several types of communications. There are organizational com-munications (communications directed to a broad audience). There are interpersonal communications that are message exchanges between two or several people. Mes-sages may be directed to, or occur, between members of the same organization or between members of the organization and customers, suppliers, shareholders, government agencies, and others outside the organization. Communications can be intended to be a one-way process (sent with no response expected) or a two-way process (where the expectation of the sender is to create a dialogue with, or obtain feedback from, others). Communications may serve multiple purposes including: to inform, to influence, to persuade, to motivate, to initiate a dialogue, to obtain or to provide feedback, and to learn. In some cases, however, communications can serve other purposes which are generally considered less appropriate such as to intimidate, to coerce, to embarrass, to disparage, to create conflict, etc. Sometimes the outcomes of the communication process are intended, sometimes accidental.

Why is Performance Management an important management concept?

In competitive businesses, becoming skilled in Performance Management helps leaders to manage their organizations more effectively and efficiently and to improve faster than their rivals. This is a distinctive competency that helps provide a competitive advantage leading to superior results.

Measurement at the Process Level:

In measuring business performance at the process level, the organization can collect data on the value of the outputs of processes to evaluate whether they are effective or not. They can also collect data on the capital employed and the costs associated with operating the process relative to the value of the outputs generated to evaluate the efficiency of the process. Measures of Effectiveness evaluate whether customer requirements are being met. Measures of Efficiency evaluate whether the value of outputs relative to the cost of inputs is creating value for the organization. The above described measures of Effectiveness and Efficiency are also known as lagging measures. Lagging measures provide data on the organization's performance after the processes are completed. While these measures are important for evaluating the organization, it is helpful to have leading measures as well. Leading measures evaluate the process while in progress or even better, before the start of the process and can be predictive of likely results. Leading measures can allow the organization to take corrective actions to improve effectiveness and efficiency before the processes are finished and before defective and/or unnecessarily costly output is created. Measuring a process is not always easy. In sophisticated manufacturing operations it is not uncommon for businesses to use technically advanced, in-process monitors to evaluate production processes. These systems use instruments and software designed to detect when a process is not operating as intended and to provide warnings, or have the system even automatically shut down or correct the process

Importance of Good Communication for Managers

In order to get the "Right Work, Done Well" a manager needs to understand the range of ways in which communication can occur and develop skills for both deliv-ering effective messages and accurately receiving messages. Without these skills the manager will be less able to provide instructions to subordinates, interact with peers, understand direction from their boss, influence customers, obtain feedback, negotiate deals, and to build the kinds of relationships that are necessary to be a successful manager.

Lean Value Process Map:

In viewing the Lean Map above note the identification of time required to complete each process step and the time lapse between steps (shown within the red circles). This latter indicator helps to identify areas of "waste" in the process. While in our simple example we focused on the process of a donut shop making donuts for its customers, it is important to understand that not all processes are delivering outputs to external customers. Many processes serve the needs of internal customers to the organization. We saw one example of an internal process with the Swimlane Process Map that illustrated the payroll process. Another example - human resources organizations provide various services for internal users within their organizations. One of those services, the hiring process, is designed to help managers attract, select, and hire qualified individuals to work in their departments. The hiring manager (the person who the new employee is going to report to) is the customer for this process and just as an organization would consider how to create value for an external cus-tomer, the human resources department also needs to consider how to create value for this internal customer by effectively designing and managing the hiring process. They also need to consider how to make that process efficient by eliminating unnecessary steps or costly elements that don't create value for the organization

Summary Part 3 Chapter 7

Integrating and Coordinating Workflows across the organization and with important suppliers outside the organization is a key element of Organization Design and is essential to making sure the "Right Work" gets "Done Well".

Summary Business Improvement Methods & Tools :

Leadership of an organization needs to proactively be involved in the selection and prioritization of improvement projects based on the results of measurement and assessment evaluations. Highly trained experts in improvement project management, utilizing proven improvement methodologies, need to be selected to lead improvement projects in order to greatly increase the probability of successful outcomes. Projects are likely to be completed more quickly and with better results when proven improvement methodologies and tools such as Six Sigma/DMAIC and Lean Methodologies are used. Collectively, this approach to Business Improvement is a key component of Per-formance Management and essential to getting work "Done Well"

Lean Methodology: (2)

Lean methodology is an improvement tool with a primary focus on eliminating waste in processes. Waste is defined as any activity that is not creating value for the customer or the converter in a process. Seven primary causes of waste are identified as part of the Lean method. These are: -1. Overproduction (producing more products or components than are currently required to meet demand), -2. Correction (having to rework a defective output of a process), -3. Inventory (the need to store output until it is required), -4. Motion (the need for excessive movement of materials and/or people as part of performing a process), -5. Conveyance (similar to motion in terms of requiring a component of the process to be transported some distance for further processing), -6. Overprocessing (performing steps in a process that do not create value for the customer or the converter), -7. Waiting (not having parts or people available when required to perform the next step in the process). The Lean Methodology minimizes these seven causes of waste. By using tools like the Lean Value Map described in Topic 10.2 in this chapter, organizations are able to identify areas of waste in the process and use Lean tools to reduce or remove those wastes. --The Lean Methodology minimizes these seven causes of waste. By using tools like the Lean Value Map described in Topic 10.2 in this chapter, organizations are able to identify areas of waste in the process and use Lean tools to reduce or remove those wastes. Implementing Lean improvement methodology and tools to remove waste helps to make processes more efficient by reducing costs and by reducing cycle time (the total time required to convert inputs to outputs in a process).

contrast between a manager and leader, Sara Canady, a frequent speaker, author, and leadership coach suggests these differences:

MANAGERS --Knowledgeable Action-Oriented --Informed Tactical LEADERS Insightful --Visionary Influential --Strategic

Summary Part 4 Chapter 7

Organization Culture is an important aspect of Organization Design. For an organization to be successful, its culture must align with its Core Values, Goals and Strategy. To develop the right culture, the organization needs to first understand its current culture by evaluating the various Dimensions and Levels of its Organization Culture using a model like the one developed by Edgar Schein. It also needs to select a target Culture using a model like the "7 Dimensions" of culture described by the Boston Consulting Group (BCG) that will help identify the culture that will best align with its Strategy. If the current culture is not consistent with the "Target Culture", then the organization needs to understand how to change its culture by using frameworks like BCG's "Critical Levers" for changing Organization Culture.

Summary Part 2 Chapter 7

Organizational Structure is a key part of Organization Design. The proper grouping of jobs together into work groups helps to assure that the work gets done effectively and efficiently. The appropriate delegation of authority allows decisions to be made where the information and expertise needed to make those decisions is located and allows decisions to be made faster and more reliably while maintaining accountability for those decisions. Modern organizations, with the aid of technology, are broadening the span of control of managers and reducing the number of hierarchal levels. This allows them to become more efficient and to improve communications from top to bottom. Collectively, Organizational Structure plays a key role in Organization Design and ensures that the "Right Work" gets "Done Well"!

SIPOC Process Map:

SIPOC is an anacronym that stands for Supplier, inputs, Process, Outputs, and Customers. It is a simple depiction of a process. Using our donut business example, below is a SIPOC describing the process for making and selling donuts to customers. To create a well-designed SIPOC Process Map, it is important to always start with the "Customers" column and work backwards from right to left. In the "Customers" column, first describe who the customers are. Then identify the behaviors desired from the customers. Finally, identify what requirements the business must meet in order to encourage the desired behaviors from customers. Next determine what "Outputs" must be created by the process in order to fulfill the requirements. Then define the "Process" steps needed to produce those "Outputs". Follow this by listing the "Inputs" needed to perform those process steps. Finally, identify the "Suppliers" for each of the "Inputs"

DMAIC/Six Sigma: (1)

Six Sigma is actually a statistical term that refers to the number of standard devia-tions (6) from a mean. For a set of data, six sigma means that 99.99966% of the data would be contained within the upper and lower limits set by the six standard deviations calculation. In other words, only 3.4 data points per million data points fall outside these limits. In using a Six Sigma concept for Performance Management purposes, the upper and lower limits that are set for measuring outputs of a process are determined by defining the range of output quality (effectiveness) that fully meets customer requirements. As long as the output of the process falls within this acceptable range it is considered to fully meet the standard, or fully meet customer requirements. Any output that does not fall within the acceptable range is considered a defect. In order for a process to be considered a Six Sigma process no more than 3.4 outputs per million can be defective (thus fail to fully meet customer requirements). A process that consistently achieves six sigma performance would be considered an excellent, well-controlled process with minimal levels of variation. The greater the variation found in the outputs of a process the more likely that process will produce defective outputs (outputs that do not fully meet customer requirements). Few processes meet the rigorous test of six sigma quality (minimal variation within six sigma limits that produce outputs that fully meet customer requirements). For many organizations six sigma performance is a goal to be strived for rather than a goal that will likely ever be achieved. Below is an example of a statistical process control chart depicting a process that is generally operating within control limits (producing outputs that meet customer requirements). Only one data point (defect) is outside of the prescribed limits (shown in red circle): -Defect: When used in Performance Management, Six Sigma goes beyond simply measur-ing the output data from processes - it also includes a methodology for improving processes to get closer to achieving six sigma performance. This methodology is called DMAIC. The acronym is Define, Measure, Analyze, improve, Control. This fre-quently used methodology for managing improvement projects is well documented to deliver successful improvement results. Many organizations such as Motorola, Allied-Signal, General Electric, Johnson & Johnson, and American Express, along with numerous others have repeatedly used this methodology on thousands of projects with excellent results

Several aspects to decision making:

Some decisions are easy with an obvious best choice. Other decisions are not so easy with no clear best choice and often a lack of information or time to analyze the alternatives sufficiently. • Some decisions will have major implications for years to come for the organization and for the individual(s) making the decision. Other decisions are inconsequential, with little impact on the decision maker or the organization. • Some decisions are based entirely on facts and logical analysis. Other decisions are based on intuition and feelings. Some decisions are based on both. • Some decisions are objective with the goal to be fair to those impacted by the decision. Other decisions are influenced by the bias of the decision maker(s) - whether intentional or unintentional. • Some decisions are made by a single person while other decisions are made by a team or committee, and may go through a series of reviews and approvals. • Some decisions are judged on the impact they have on the organization regardless of how they were made. Other decisions are judged on the process that was used to make them regardless of the outcome. • Some decision makers are punished for making "bad" decisions no matter how well thought-out their choice. Some decision makers are rewarded for the courage to make "risky" decisions even if they did not turn out to be successful. • Some decisions involve paradoxes or dilemmas, having to deal with multiple and conflicting options (for example, investing in development of new products versus optimizing current profitability). Such is the nature of decision making in a business.

Leadership and Emotional Intelligence:

Some of the most recent leadership research has focused on the concept of emo-tional intelligence in leaders. Daniel Goleman's work over the last 25 years has brought to light, in both academic and professional circles, the importance of interpersonal skills in leadership success. His original model included "domains" critical for achieving high levels of emotional intelligence as depicted in the following chart: were differentiated from "average" performers primarily on the basis of their emotional intelligence ratings rather than differences in cognitive abilities or technical skills. This suggests that a higher level of emotional intelligence is key for a leader to achieve high performance.

Target Setting Involves Choosing the Behaviors That Support the Organization's Strategy

Structured-Flexible Controlling-Delegating Cautious-Risk-permitting Thinking-Doing Diplomatic-Direct Individualistic-Collaborative Internal-External --Adapted from J. Hemerling & J. Kilmann, "High Performance Culture, Getting It, Keeping It," Boston Consulting Group, June 2013.--

Business Process Management (BPM) Summary:

The BPM concept of effective and efficient process management is a fundamental aspect of understanding how work is "Done Well". Effective processes result in obtaining desired behaviors from the intended users (customers) of the outputs of the process (in other words - design processes that fully meet customer requirements). Efficient processes are effective processes that generate adequate returns on the capital employed to operate the process (don't waste resources while fulfilling customer requirements). Process maps provide a tool that managers can use to better understand the processes they manage. SIPOC, Swimlane Charts, and Lean Value Maps are three types of process maps that can be used to illustrate processes. All work is a process and thus to get work "Done Well" a manager must under-stand how to successfully manage processes. They must make sure processes are designed and managed to operate effectively and efficiently.

Balanced Scorecard

The concept of organizations using a "Balanced Scorecard" was broadly socialized by Kaplan and Norton in the 1990's. The initial intent of their work was to suggest that leaders of an organization should routinely evaluate more than just financial results and/or marketing results. The Balanced Scorecard provides a focus on both financial and non-financial objectives described as Perspectives. The four Perspectives are: Financial, Customer, Internal Processes and Organizational Capacity. It is estimated that over 50% of medium to large businesses use some form of Balanced Scorecard to assess overall performance of their organizations

actions to support their organization (2)

The employee's actual behavior should be consistent with their positive mindset and include discretionary, self-initiated, extra effort in support of their organization

Behavior-Based Leadership Theory:

The next body of leadership research, spanning nearly thirty years, focused on the "behaviors" or "styles" of leaders to see if there were any discernible patterns of behavior that distinguished leaders from others.

Process of Communication

The process of communication involves a "sender" who has an intent and a message they deliver through one of the methods of communication (see later discussion of methods), and a "receiver" who is the recipient of the message and forms an interpretation of its meaning and its intent. Communication is considered effective when the intent and the meaning of the message from the sender are the same as the interpretation of the meaning and intent by the recipient. Unfortunately, this does not always happen for several reasons. These include a poorly constructed mes-sage or an inappropriate choice of method of delivery, either of which can under-mine the goal of the communication effort. Other factors that lead to a breakdown in effective delivery and/or correct understanding include, differences in language and/or culture, mismatches in the expectations or prior experiences of a sender and receiver, or a poor relationship between the sender and receiver that may lead to misunderstandings or mistrust of the purported intent or message.

Measurement at the Organization Level:

There are several ways an organization can evaluate its overall performance. Two of these approaches are discussed here: -Balanced Scorecard- The concept of organizations using a "Balanced Scorecard" was broadly socialized by Kaplan and Norton in the 1990's. The initial intent of their work was to suggest that leaders of an organization should routinely evaluate more than just financial results and/or marketing results. The Balanced Scorecard provides a focus on both financial and non-financial objectives described as Perspectives. The four Perspectives are: Financial, Customer, Internal Processes and Organizational Capacity. It is estimated that over 50% of medium to large businesses use some form of Balanced Scorecard to assess overall performance of their organizations -Business Assessment: Another approach to evaluating business performance at the organizational level is the use of a comprehensive Business Assessment. The National Institute of Stan-dards and Technology (NIST), an agency of the Commerce Department of the United States Government, is responsible for the development and management of the Malcolm Baldrige business assessment framework. This framework includes a set of comprehensive criteria for conducting assessments of organizations across multiple business sectors. Organizations that have made substantial progress in meeting the standards that are part of the criteria can apply for national recognition as part of the Malcolm Baldrige Awards Program. -The Baldrige Framework has 7 categories to be evaluated as part of an assessment of the organization. These categories are: -1. Leadership 2. Strategy 3. Customers 4. Measurement, Analysis, and Knowledge Management 5. Workforce 6. Operations 7. Results -Organizations can use business assessments, like the Baldrige framework, to help identify strengths and weaknesses in performance. The assessment evaluates both business results and how well key business processes are managed. The results of an assessment help management identify improvement opportunities.

Compensation and Benefit

These laws addressed two key areas. The first was the requirement that men and women be paid the same for equal work (Equal Pay Act of 1963). The second was the requirement that employers with over 49 workers provide up to 12 weeks unpaid leave for family (childbirth, adoption) or medical reasons (Family and Medical Leave Act of 1993)

Swimlane Process Map:

This Swimlane Process Map depicts the process for preparing and distributing payroll to employees. Unlike a SIPOC Process Map, the Swimlane Process Map identifies each of the departments involved in a process and depicts what activities they are responsible for completing and where in the overall process flow those activities take place. Swim-lane Process Maps can also show decision points in the process and depict alternative paths based on the outcome of those decisions (the orange diamonds in the chart)

Effective Processes:

To understand if a process is effective, the manager of a process must start with an understanding of the requirements of the users of the outputs of that process - the "process customers" (in our example, the donut shop customers). Simply put, the requirements of a customer are the necessary characteristics of the product and service (at a given price) that will result in the customer perceiving that the output creates value for them and motivates them to behave in ways that are beneficial to the converter (the donut shop). Some of these desired customer behaviors include regularly buying the donuts, telling friends about the great donuts and service at the donut shop, providing feedback to the donut shop to help them improve, sug-gesting ideas for new products and services, and so on. Thus, an Effective Process is one that delivers outputs that results in obtaining the desired behaviors from the intended users (customers) of the outputs of that process (in this example, the donut shop customers). Unless the process results in obtaining the desired behaviors from customers, the process is not effective.

Thinking vs Doing:

To what degree do people spend time developing ideas versus executing them?

Individualistic vs Collaborative:

To what extent are employees concerned with their own individual performance versus shared goals?

Internal vs External:

To what extent are processes and behaviors oriented toward the outside world versus the internal environment

Controlling vs Delegating:

To what extent is power and decision making concentrated at the top or diffused throughout the organization

Training and Development

Training can be accomplished in several ways including classroom instruction, online instruction, use of procedure manuals/checklists, supervisor instruction, peer instruction, or self-instruction learned from performing the job. An initial training session or orientation program can help familiarize the employee with company values, policies, employee support programs, and other information to aid the employee in becoming quickly acclimated to their new organization. -Development is achieved through many of the same approaches used to train an employee. -Training and Development are important activities essential to preparing employees to do their jobs today and preparing them to take on added responsibilities in the future. Work is more likely to get "Done Well" when employees have been properly prepared to do their jobs!

Ways Managers Can Improve their Skills as Effective Communicators

When communicating verbally or in writing, it is helpful to start by identifying the goals and intent of the communication (what you would like the receiver to do and/ or how you would like them to react and/or respond to the messages). Then proceed to develop the specific messages to be sent. When developing the messages - clar-ity, intelligibility, and brevity are good standards to meet. Depending on the purpose of the message - empathy, concern, respect, a feeling of equality, and appropriate demeanor are important attributes of the message and its delivery. Keep in mind that "how the message is delivered" may be as important as the message itself. The non-verbal signals (whether you are the sender or receiver of the message) include demonstrating genuine interest, willingness to listen, and offering positive reception through facial expression, eye contact, and body posture. Finally, when you are the receiver, active listening skills that include asking ques-tions, paraphrasing what you heard, and generally checking with the sender to make sure you are understanding the message correctly should be the starting point before responding, offering feedback, or providing critique on the content. Offering negative feedback should focus on the content of the message and not be directed at the sender of the message. In addition, it may be wise to ask the sender if they are seeking frank feedback before offering it. Effective communication is a vital skill for managers. It is an area where there is always room for improvement. Understanding the nature of communication, working on improving your communication delivery and reception, and ongoing reflection and analysis of successful and unsuccessful communication experiences are keys to developing this skill

Defect

When used in Performance Management, Six Sigma goes beyond simply measur-ing the output data from processes - it also includes a methodology for improving processes to get closer to achieving six sigma performance. This methodology is called DMAIC. The acronym is Define, Measure, Analyze, improve, Control. This fre-quently used methodology for managing improvement projects is well documented to deliver successful improvement results. Many organizations such as Motorola, Allied-Signal, General Electric, Johnson & Johnson, and American Express, along with numerous others have repeatedly used this methodology on thousands of projects with excellent results

Extra (Author's Note)

While business improvement tools and methods like Six Sigma/DMAIC are not experiencing the same wide-spread levels of praise and adoption seen in the early 2000's, and while there have been recent criticisms that these tools were overly focused on efficiency and less on driving innovations necessary to achieve higher levels of effectiveness, the proven benefits of using these methodologies and tools is still compelling. That is why many organizations still employ these Performance Management tools and methods as part of a comprehensive approach to business improvement. In concert with this traditional approach to business improvement, organizations are now also focusing significantly more attention on innovation initiatives (see Chapter 5) and on creating "Agile" organizational structures designed to rapidly respond to changing business/competitive environments (see Chapter 7). Like many approaches to the practice of management, Performance Manage-ment needs to be customized to meet the unique circumstances of each organization and to be adapted, as necessary, to respond effectively to a changing business and competitive environment. As more and more processes are designed to be effective and efficient from the start, the need for multiple cycles of improvement are reduced and so the management focus properly shifts more to innovation and agility with less relative emphasis on improvement.

What can help an organization and its managers to make better decisions?

While many management books describe a step-by-step approach to decision making including developing decision-making criteria, collecting data and informa-tion, consulting with others, identifying and evaluating the options and their conse-quences, and then choosing the best option based on the established criteria, the reality is that few decisions are made this way in business. Major decisions with sig-nificant implications and large commitment of resources often do follow this more structured approach but the majority of decisions made by managers do not have the luxury of time and focus necessary to process through all these steps. In these cases, the experience, intellect, and emotional intelligence of the manager are used in a less formal way to decide what to do. Rather than find the optimal decision, in most cases, the manager seeks a satisfactory decision, one that is good enough to address what needs to be done. Sometimes the best decision is not to make one at all. Asking the question of whether taking any action is really necessary is often a good option to consider when faced with a decision. If there is not an immediate need for action sometimes it is better to wait until more information is available or the situation resolves itself. Research shows that decisions made as a team generally have better outcomes than decisions made individually without consultation. Making decisions as a team can help limit individual biases and introduce more alternatives that may not have been considered. It can also help with performing analysis of the alternatives. While it is tempting to believe that the best decisions are made with all the data and evaluating every option, we have previously discussed the concept of "bounded rationality" that demonstrates that this is not common practice, nor is it practical. In some cases, computers and artificial intelligence programs can aid in processing large quantities of data and optimizing solutions given a set of criteria but not all management decisions lend themselves to this sort of analysis. For example, a deci-sion to forego profits in favor of social responsibility initiatives cannot be analyzed solely in economic terms. Another consideration is at what level in the organization should decision-mak-ing responsibility be delegated. The answer is that it depends on several factors including the knowledge and capability of workers at various levels, the type of deci-sions, the magnitude of those decisions and their impact on the organization, and the management philosophy of the owners of the business (the degree of control they wish to exercise over the business). While generally it is beneficial to delegate authority to the lowest level at which it can reasonably be managed, this is not always easy to determine, which is why most organizations have procedures that require a higher-level review of decisions based on the nature or the financial impact of those decisions. Along with the delegation of authority often comes the accountability for the outcome of those decisions. If managers are ill-equipped or poorly qualified to make decisions they are expected to make, then this accountability can lead to adverse con-sequences for those managers. Understanding the potential consequences of poorly made decisions can encourage managers to seek assistance and support to help them to avoid making poor decisions that could have a significant impact on their careers. Finally, the research shows that managers tend to overrate their ability to make good decisions. Recognizing this propensity can help managers to become more proactive in evaluating their decisions and learning from both the good and the bad ones. Making decisions is a major part of a manager's responsibilities. Understanding the issues, complexities, and consequences of decision-making is important to improving a manager's skills

Purchase of Expertise

a leading scholar in the area of Organization Culture, suggests the following framework for understanding an organization's culture. To help organization's do this he describes Dimensions and Levels of Organization Culture.

Schein (Edgar)

a leading scholar in the area of Organization Culture, suggests the following framework for understanding an organization's culture. To help organization's do this he describes Dimensions and Levels of Organization Culture.

Headhunter

a professional talent search organization to help them find qualified candidates.

Liaisons

are individuals appointed with the responsibility to coordinate the activities of their group with the activities of one or more other groups. Generally, liaisons coordinate work activities by working with the liaisons appointed from those other groups. By consolidating this responsibility within an individual role, it allows that individual to develop an understanding of the groups that he/she will be coordinating with and build relationships with the people in those groups. These relationships can aid timely communication and problem resolution. It also can make it easier for individuals who need to coordinate efforts with another group to quickly gain the support of --someone they know and trust (their group's liaison). This is often a better approach than employees trying to figure out who and how to contact -someone they have never dealt with before outside their group

Integrating Roles

are individuals that in addition to their other responsibilities are charged with being a coordinator of activities with other groups. Unlike Liaisons whose sole role is to coordinate activities with other groups, someone in an Integrator Role has other responsibilities in addition to the role of coordinator with other groups. An example would be a person who works in the Human Resources function primarily as a compensation specialist but also is assigned to work with two or three other departments to help them prepare their annual Human Resources plan. That person may also be the primary point of contact for those departments to obtain services or support from the Human Resources department

Task Forces

are made up of members of multiple groups who are assembled to address a specific need for coordination. This approach is generally used for handling a single project such as developing a new product or addressing a problem that has arisen in the organization. The intent is to bring together those people who are best able to complete the project successfully by working together.

Cross Functional Teams

are made up of members of multiple groups who are assembled with ongoing responsibility for managing a key activity of the organization. These teams could be product teams, or customer teams, or employee welfare teams, etc. The main difference between a Task Force and Cross Functional Teams is that Cross Functional Teams have ongoing responsibility for coordinating activities whereas a Task Force generally only stays in place long enough to complete a single project.

Organization Culture

are the set of norms, beliefs, values, and attitudes that are shared by a group of individuals within an organization.

Employee Relations

are the various programs, services, activities, and communications enacted by the organization to foster a positive relationship between the organization and its employees. -programs often include some of the following: • "Town Halls" where management meets with employees to share news about the organization and to answer employees' questions. • Company websites where Information about employee programs and organization announcements are routinely shared with employees and employee questions can be submitted and answered. • "Suggestion Boxes" where employees can anonymously share ideas for improving the organization, raise employee issues, or share complaints. • Organization sponsored social events such as company picnics, holiday parties, or outings to local attractions or sporting events. • Company sponsored clubs/teams to organize activities for employees with similar interests • Employee surveys to evaluate employee attitudes towards the company, and formation of employee committees to address employee concerns that are identified in the surveys • Diversity training for managers to develop their skills for creating a more inclusive environment within their departments •Celebrations/Announcements of employee promotions, retirements, service anniversaries or other special events (weddings, births, adoptions, etc.) • "Matching Gift Programs" where organizations will match employee contributions to charitable organizations or educational institutions ---In organizations with unionized labor, Employee Relations is usually referred to as "Labor Relations" and by contract with the labor union, often must follow more formal procedures in instituting any of the above Human Resources programs. Generally, the adoption and implementation of any HR programs for union employees requires negotiations with the labor union and a vote by the members of the union to approve whatever agreements are reached. Maintaining positive relationships with employees is important to attracting and retaining good employees and motivating them to perform their best! Having a workforce comprised of motivated employees is a key success factor for getting work "Done Well". -Maintaining positive relationships with employees is important to attracting and retaining good employees and motivating them to perform their best! Having a workforce comprised of motivated employees is a key success factor for getting work "Done Well".

Process Maps

are visual depictions of the multiple steps involved in the con-version of inputs into outputs. -These process maps can take various forms from very simple depictions (SIPOc chart), to more detailed descriptions (swimlane chart), to very advanced descriptions (lean value map). Process maps help to illuminate the activities that are involved in a process making it easier for managers and process participants to understand the process. -One of the tools that help managers to successfully manage processes is process maps. These process maps can take various forms from very simple depictions (SIPOCchart), to more detailed descriptions (swimlane chart), to very advanced descriptions (lean value map). Process maps help to illuminate the activities that are involved in a process making it easier for managers and process participants to understand the process. We will describe these three visual process depictions in more detail next.

Organizational Structure

as we discussed in Topic 7.2, Organizational Structure can help with coordination and integration by selecting a structure that will group the jobs together of those employees who need to routinely work together in order to accomplish their tasks. By having these employees work in the same sub-groups, it is more likely that they can integrate and coordinate their work more easily and successfully. Disagreements between employees on how to complete tasks can be more easily resolved by their managers who also work within the same sub-group

achieving higher levels of Employee Engagement leads to

better outcomes for the organization as well as the employee.

Job Design

creating jobs in an organization that can be done effectively and efficiently while providing meaningful work for the employee.

Organizational Structure

describes: the grouping together of jobs into work groups, the delegation of authority and responsibility within an organization, and the formal reporting relationships of employees to supervisors. -within a particular Organizational Structure is to make it easier to get the necessary tasks done effectively and efficiently.

Measures of Effectiveness

evaluate whether customer requirements are being met.

Measures of Efficiency

evaluate whether the value of outputs relative to the cost of inputs is creating value for the organization.

Gallup Poll

found that only 34% of employees are actively engaged in their work. this means that well over half of workers in the United States are not fully engaged. Employee Engagement surveys in other coun-tries report similar results. So, what are the benefits to an organization of having high Employee Engagement levels? gallup reports that organizations that are best in engaging their employees achieve earnings-per-share growth rates "that are more than four times that of their competitors". their analysis also finds that "Compared with business units in the bottom quartile, those in the top quartile of engagement realize substantially bet-ter customer engagement, higher productivity, better retention, fewer accidents, and 21% higher profitability. Engaged workers also report better health outcomes." Aon Hewitt, a major consulting firm specializing in human resource management, has conducted analysis using their client base and reported similar positive results, "In our database of over 8 million employees across organizations, we find that the companies with top quartile engagement levels (72% or above) have 50% higher total shareholder return (tSR) than the average company" --achieving higher levels of Employee Engagement leads to better outcomes for the organization as well as the employee.--

Functional Structure

groups jobs that require similar skills and experience together into a single work group reporting to the leader of the organization.

Matrix Structure

groups jobs together simultaneously by function and by division.

Divisional Structure

groups jobs together with people of diverse skills and experience who collectively focus on either providing specific products, or serving specific groups of customers, or serving specific geographical areas.

Business Measurement, Assessment, and Evaluation

helps organizations to under-stand how effectively and efficiently specific processes are performing as well as to understand how well the organization is performing overall to aid in the identifica-tion and prioritization of opportunities for improvement. -Measurement is done both at the process level and at the organization level. -"Well-Dressed" measures are designed to provide meaningful data on the effective-ness and efficiency of processes and overall organizational performance. A Balanced Scorecard provides indicators of both financial and non-financial performance which provides a more comprehensive view of the business. Use of Business Assessments, like the Malcolm Baldrige business assessment framework, help to evaluate the overall performance of an organization in terms of business results and the performance of key processes. Management teams use these various measures, scorecards, and assessments to provide the necessary data to perform meaningful evaluations of the business in order to identify and prioritize opportunities for improvement. Collectively, these Performance Management practices of Business Measure-ment, Assessment, and Evaluation are essential to understanding if work is getting "Done Well" and to identify opportunities for doing it even better!

Business Measurement, Assessment, and Evaluation

helps organizations to understand how effectively and efficiently specific processes are performing as well as to understand how well the organization is performing overall to aid in the identification and prioritization of opportunities for improvement.

Intensity of Feelings

how people feel about the importance of the norm. To what extent will people be recognized/sanctioned for supporting/violating the norm

Consensus

how widely norms are shared across people in the organization.

2 major categories of illegal Sexual Harassment:

i. Quid Pro Quo Sexual Harassment - occurs when consent to sexual acts affects job outcomes such as getting or keeping one's job. ii. Hostile Work Environment Sexual Harassment - occurs when unwelcomed sexual behavior creates an intimidating and offensive workplace for anyone. In this case the behavior generally needs to be severe and pervasive.

Delegation of Authority

in incorporated businesses means, ultimate authority for decisions rests with the shareholders of the business (the individuals or organizations that own the company's stock).

Recruitment and Selection

is a process for identifying, pursuing, and hiring qualified candidates to fill current and future available positions within an organization. --Recruitment starts with having a well-developed Organization Design. This includes clear job descriptions, the necessary qualifications for those jobs, a clear organization structure, who those jobs will report to, and what other jobs they will interface with regularly. Once provided with this information, the HR function can determine the ideal types of candidates to recruit for a particular job. HR can anticipate how many people are needed for various jobs both in the short term and in the longer term and whether those candidates will be sourced internally and/or need to be hired externally. In addition, due to unexpected turnover or promotions, openings for some positions can occur randomly throughout the year and will also need to be addressed. Today, sophisticated tools can scan resumes to quickly determine if a candidate has the required skills and experience. In some cases, there are "Search Firms" that will proactively search Facebook, LinkedIn, and other social media sites as well as resume databases to help identify potential candidates who may not even be actively looking for a job and to reach out to those qualified individuals to see if they might be interested in changing jobs. For some positions, organizations hire a "Headhunter" (a professional talent search organization) to help them find qualified candidates

Performance Appraisal & Feedback

is a process of employee evaluation and communication with the goal of providing timely and beneficial information to the employee, and to the organization, on the value of the contributions of the employee to the organization as well as identifying opportunities for improving employee performance -To be effective, performance appraisals should be: • Based on pre-established standards, and/or realistic and achievable performance goals, that were understood and agreed to by the employee • Conducted on pre-established regular intervals in a timely manner • Objective and constructive with the goal of helping the employee to understand current performance and to encourage continued excellent performance or to identify opportunities for and/or necessary areas in need of improved performance • Balanced in highlighting areas of good performance as well as opportunities for improvement • Clear on the employee's performance rating relative to an overall rating standard (though there is not necessarily a consensus on this requirement, it is helpful if compensation levels and adjustments are tied to an employee's overall performance) • A two-way discussion, with the employee given the opportunity to respond and challenge conclusions in the appraisal or the recommendations for improvement and with a willingness on the part of the manager to revise the appraisal for identified inaccuracies, unfair conclusions, or unrealistic expectations for improvement. • Conducted with a goal of reaching consensus with the employee on the fairness of the evaluation and the areas in need of improvement with a joint commitment of the manager and the employee to support pursuit of those improvement opportunities • Not used for the employee to provide feedback to the manager on the manager's performance or on other employees' performance in the organization • Not used to discuss changes in compensation (though this is not always the case in some organizations. Generally, it is agreed that it is better to separate performance evaluation from the compensation discussion with the idea that there should be agreement on performance with the employee before compensation decisions are finalized. -Performance appraisals for managerial level employees may also include: • The managerial level employee originally submitting proposed performance goals for discussion and agreement with their supervisor at the beginning of the evaluation period • Submission of a self-evaluation at the end of the evaluation period in preparation for the supervisor completing the evaluation • Use of "360 feedback" (a process of collecting feedback from the employees of the managerial level employee being evaluated, his/her peers, and others who routinely interact with him/her). This feedback is generally used as input for identifying areas in need of improvement and used less as a basis for performance evaluation due to the more subjective nature of that feedback. --is an important process for helping employees understand how they are performing and how they can improve. It also provides input in determining appropriate compensation rewards and other forms of recognition as well as determining whether employees should be considered for promotions or other assignments, or in extreme cases, for disciplinary action, probation, or dismissal. • The HR professionals in the organization play a key role in developing a fair process and assuring that it is done in a timely and appropriate manner. This often includes training mangers on how to develop performance plans with their direct reports, how to prepare performance evaluations, and how to deliver the appraisal feedback in a constructive and objective way. • The goal is for Performance Appraisal & Feedback to provide the organization and its employees with accurate assessments of employee performance and to provide direction to employees on the areas in need of improvement while also having employees feel that the process is constructive, objective, fair, and supportive of helping them to improve. When the process is designed with these goals in mind, the result is more engaged employees and improved employee performance.

Compensation and Benefits

is a program and process for providing competitive pay and other incentives to employees in support of the organization's goals, strategy, and values. -In most organizations, base compensation for employees is either an hourly wage paid for the number of hours worked times an hourly pay rate, or a salary paid at a fixed dollar amount for a given period of time (weekly, bi-weekly, or monthly). In addition to the base compensation, hourly paid employees can earn overtime pay (usually 1.5 times their standard hourly wage) for working more than a given number of hours each week (usually in excess of 40 hours per week). They can also earn additional pay for work-ing holidays, or in some industries for working Saturdays or Sundays. This "holiday" rate is often paid at 2 times the standard hourly pay rate. For salaried employees, there is generally no overtime pay for extra hours worked but these employees are often included in programs that pay a periodic bonus based on performance by the employee and/or the organization's overall results. Less common are other forms of compensation based on for example, "piece work" which pays an employee a fixed amount for completing a given work task such as sewing a pair of pants or assembling a product. In a "piece work" shop, however, there are typically substantial wage reduction penalties for any defective products that are produced to discourage poor quality by employees in their effort to perform tasks quickly. Another alternative form of compensation is "commission pay" where an employee is paid a percentage of the proceeds from making a sale of merchandise or for signing up a customer for a program or service. In the food service business, it is customary for employees to earn part of their pay from "tips" left by customers which are usually based on a percentage of the cost of the meal but are given at the discretion of the customer.

Process

is a series of steps or actions taken to convert a set of inputs into a set of outputs.

Decision-making

is about making a choice from a set of alternative options.

Sexual Harassment

is any unwelcomed behavior of a sexual nature

Waste

is defined as any activity that is not creating value for the customer or the converter in a process.

Leadership

is defined as the influence of a person over others (followers) as evidenced by the followers' motivation, loyalty, and high performance in support of the leader's vision, goals, and/or direction

Strategic Human Resources Management

is key to an organization anticipating and addressing both current and future needs for talent and overcoming the challenges to ensure that talent is available and fully prepared when needed.

Strong Organization Culture

is one where the majority of the employees share the same norms, beliefs, values, and attitudes as it applies to their work-related activities even if they are part of significantly different cultures outside of their workplace

Development

is preparing employees to take on additional responsibilities for future roles or expanded responsibilities in their current role

Business Process Management or BPM

is sometimes defined broadly to include many of the aspects of Performance Management discussed in this chapter but in this textbook it is defined more narrowly to focus specifically on the concept of process as an underlying framework for under-standing the interrelated activities performed in an organization.

Training

is teaching employees the skills necessary to perform effectively in their cur-rent job

Autonomy

is the extent to which the employee is allowed to make choices about scheduling and how best to perform tasks

Feedback

is the extent to which the employee receives clear and direct information on how well they are performing the task.

Task Significance

is the extent to which the job effects the lives of other people.

Task Identity

is the extent to which the job requires the worker to perform all the tasks needed to fully complete the task.

Strategic Human Resources Management

is the identification of current and future talent requirements necessary to support the goals and strategy of the organization as well as the development and implementation of the plans and programs to assure the organization recruits, trains, develops, supports, and retains that talent

Succession Planning

is the process of identifying likely candidates for future openings in key positions in the organization as well as evaluating each employee's potential for taking on added responsibility. --By conducting Succession Planning, organizations can anticipate the availability of qualified talent to fill key positions and work towards developing employees to be ready to fill those positions. Succession Planning also includes evaluating each employee in terms of their potential for performing at higher levels in the organization now or in the near future.

Communication

is the sharing of information between two or more people

Employee Engagement

is the state of mind the employee has towards their job and their employer, combined with the level of positive and productive behavior exhibited by the employee on behalf of their employer.

assign tasks to employees

is to design standard "jobs" around tasks that require a common set of skills

Decentralized Organizational Structure

many decisions are delegated to lower levels of management with those managers accountable for the consequences of their decisions (good or bad)

Centralized Organizational Structure

most decisions are made, or at least must be approved, by the senior executives at the top of the organization.

Employee Benefits

often include health insurance, dental insurance, life insurance, vacation time, sick days, dependent day care assistance, and other programs that are valuable to employees -These benefits are generally provided, or are available, to all employees. As part of participating in some benefit programs, the employee may need to share in the cost of that benefit. This is common for healthcare insurance or dental insurance where the employer may pay the majority of the cost, but the employee will still pay a portion of that cost. In some cases, the amount they pay may be dependent on their wage level with higher wage employees paying more and lower wage employ-ees paying less. The cost can also depend on whether the employee's family mem-bers are also to be included in the benefit program. Recently, organizations have begun to offer "cafeteria plans" whereby the employee can pick and choose from various benefits with corresponding differences in the cost to the employee based on their choices --The goal of compensation and benefit programs is to help attract and retain qualified employees and to motivate them to perform to their fullest potential. -In order to achieve this goal, compensation and benefit programs must be com-petitive and influential. A key role the HR function plays is to coordinate the organi-zation's compensation and benefits program consistent with the goals and strategy of the organization (as discussed in Chapter 3). If the organization's strategy is to "differentiate" its product and services, it may need to pay higher wages than com-petitors in order to attract the best talent. On the other hand, if the organization's strategy is "low-cost" then they may need to try to keep compensations costs lower than competitors in order to achieve an overall cost advantage. Part of the challenge for HR functions is to assist the compensation decision makers in determining competitive compensation and benefit packages for employ-ees. To do this, many HR functions belong to professional associations that provide benchmark compensation and benefits data for standard job categories. In addition, there are external consultants that will benchmark positions within specific indus-tries or for specific geographic areas to assist organizations in determining appropri-ate compensation levels for various job categories. Beyond making sure that compensation and benefit packages are competitive for attracting and retaining employees, compensation can also play a role in motivating good job performance. When an employee's compensation can increase more or less based on the level of their performance, and/or when an employee can earn a bonus based on good performance, then compensation can also be used as a tool to motivate employees to do their best.

State of mind (1)

or outlook employees have toward their organizations and their jobs. For an employee to have a high level of Employee Engagement, the state of mind of the employee should be highly positive, proactive, appreciative, and supportive of their organization, their co-workers, and their work role resulting in a high-level of self-esteem and self-satisfaction positive and productive

Span of Control

refers to the number of direct reports assigned to a man-ager. The more direct reports, the broader the span of control. The fewer the number of direct reports, the narrower the span of control. The trend in business is to broaden the span of control of managers thus reducing the total number of managers required. Technology, and the increase in knowledge workers, reduces the need for direct supervision of many workers and thus allows for broader spans of control

Levels of Hierarchy

refers to the number of managerial levels between the top and the bottom of an organization. The fewer hierarchical levels, the flatter the organization. The more hierarchical levels, the taller the organization. The trend is towards creating flatter Organizational Structures

Outsourcing

tasks done by people outside the organization

Skill Variety

the extent to which a job requires a worker to use a wide range of different skills and abilities

Strategic Human Resources Management

therefore, is a key component of a well-developed strategic plan for the organization. Without the right talent in place, it is unlikely work will get "Done Well"

loyalty, motivation, and satisfaction may be desirable goals

they may not provide the same benefits to employees, or the organization, that Employee Engagement does -(loyalty, motivation, satisfaction) only a partial positive state of mind is being created, and consequently, it is not resulting in positive and productive behavior as demonstrated by discretionary effort put forth by the employee.

Values

this includes the espoused and documented norms, ideologies, charters, philosophies, etc. that comprise the apparent values of the organization. To truly identify these, it is necessary to understand how the people in the organization think and feel which is difficult to ascertain from just observing what is espoused or documented. It is also insufficient to observe the behaviors without understanding the thinking and feelings which encouraged those behaviors.

Assumptions

this includes the underlying, taken-for-granted, and usually unconscious thoughts of members of the organization that determine perceptions, thought processes, feelings, and behavior. Identifying assumptions correctly makes it easier to decipher the meanings implicit in the values and artifacts described previously. It is these assumptions that are at the root of understanding the culture in an organization

Artifacts

this includes things that can be observed in the organization like the dress code, physical layout, manner in which people address each other, the smell and feel of the place, the level of emotional intensity along with "archival" manifestations like products, statements of philosophy or values, and annual reports. While these are easily observable to an outsider of the organization it is not enough to rely on these alone as an indicator of the Organization's Culture because what is important to understand is how the individuals inside the organization react to these artifacts and how it influences their behavior

Content

what is deemed important including things like teamwork, accountability, and innovation

3 key elements that are derived from the Performance Management Principles

~1. Business Process Management (BPM) - Managers use Business Processes to help them better understand and manage the activities in their organizations. ~2. Business Measurement, Assessment, and Evaluation - Managers use Measurements and Assessments to help them Evaluate the performance of their organizations. ~3. Business Improvement Methods & Tools - Managers use proven Business Improvement Methods & Tools in order to improve the performance of their organizations.

3 "Principles" into the culture of the organization through the following approaches

~1. Role of Leadership - The leadership of the organization needs to communicate and reinforce the commitment to excellence achieved through a continual focus on the Performance Management Principles ~2. Use of Experts & Training - Superior results often require repeated and ongoing successful improvement initiatives. To that end, successful improvement initiatives are more likely to be accomplished when using individuals who have the training and experience in repeatedly delivering successful improvement initiatives. These individuals will be experts in project selection and management. They will also know how to apply proven improvement methodologies and tools. ~3. Use of Proven Methodologies & Tools - The experts described above need to rely on a set of tools to be successful with their improvement efforts. These tools don't need to be re-invented with each project; they already exist as a set of tools that have been demonstrated to repeatedly lead to high-impact, successful project results. Application of tools and methods such as Six Sigma and Lean Methodology have routinely delivered significant results when used by properly trained and experienced experts.

Management Principles include the following:

~Role of Leadership - Develop and communicate a clear direction for the organization and support that vision by investing in the capabilities necessary to fulfill it. ~Customer Focus - Create superior value for customers based on an understanding and commitment to economically delivering customer requirements better than competitors. ~High-Performance Environment - Use a process-based view of the organization that effectively integrates multiple activities and functions working collaboratively to create outstanding results. ~Fact-Based Management - Use a collection of balanced measurements and objective, comprehensive business assessments that are routinely reviewed and evaluated to understand how well the organization performs against standards of excellence. Use this data to identify performance gaps and improvement opportunities. ~Relentless Improvement - Embrace a commitment to continually do better through use of proven methodologies and tools coordinated by experts trained in managing and delivering successful improvement initiatives ~Innovation and Renewal - Continually seek creative ideas for transforming and renewing the organization by not only adopting today's best practices, but also by authoring tomorrow's best practices.

How should managers effectively deal with conflict in the workplace?

• Assess whether the conflict warrants immediate action or not. If the conflict violates established company policy, threatens violence, or constitutes potentially illegal acts then immediate action is required to intervene or to seek assistance from others. • If the conflict between two parties doesn't raise any of the concerns above, it may be beneficial to first determine if intervention is warranted or not. Sometimes parties are able to more effectively work out the conflicts by themselves, and their resolution may result in stronger outcomes than if management had intervened. A debrief of events afterwards with each party (separately) may be helpful if the parties were not able to reach a resolution in an effort to lay out a path for taking a more professional approach. • If intervention is necessary, seek to diffuse the tension by finding a neutral location and allowing some time to pass so each person has the opportunity to calm down and regain some composure. Ask the parties to the conflict if they want your assistance in resolving the conflict or would prefer to work it out themselves in a more professional manner at a later time after they had a chance to reflect on what took place. Assess the likelihood of continued conflict between the parties and seek assistance from professionally trained counselors if necessary to help diffuse the tension. • If you are directly involved in a conflict with another employee, suggest the need to take a break and resume the discussion at a later time. Consider asking other employees or trained professionals to participate in the later discussion to assist with working toward a resolution to the disagreement. • If conflict is the result of personal differences unrelated to disagreements over business activities, suggest that this sort of discord is not appropriate for the workplace and focus attention on the importance of being able to collaborate on business-related matters regardless of other differences that may exist between you and the other person. • If in the role of a manager you are addressing inappropriate behavior by a subordinate, focus the discussion on addressing the behavior of the subordinate and not on the character of that person. Make clear the behavior is inappropriate and cannot be continued without more serious consequences. Describe what those consequences could include. Be willing to listen to the subordinate's explanation for the behavior but avoid taking sides and be clear that regardless of the explanation, the behavior is still not appropriate and cannot be repeated. Discuss a plan for addressing and correcting any issues that were created by the behavior. Discuss the potential need for the subordinate to get professional assistance to address the causes of the behavior, particularly if it is due, in part, to circumstances occurring outside the workplace. Agree on a follow up plan to confirm that the behavior has not been repeated. • In some cases, it may be best to refer the matter to Human Resources or other professionals to address the situation especially if there is an indication that the person is suffering from depression, drug or alcohol use, or mental illness. Addressing the cause of conflict in these types of situations goes beyond the skill set expected of managers and if handled improperly could cause more serious outcomes for both the manager and the employee. • Finally, when conflict arises over business related issues, as a manager, seek to listen to the arguments put forth by all sides before offering comment. Show impartiality and objectivity and acknowledge the legitimacy of the various viewpoints as a positive contribution towards seeking the best solution. Focus on gaining agreement on the criteria to be used to make a decision before addressing the merits of any particular argument. Focus on the substance of the options, not the individuals who proposed them, during the evaluation phase. As the last step, work to build consensus for the best option, if possible, by integrating solutions from both perspectives and by acknowledging/addressing the concerns of both parties.

Organization Design supports getting work "Done Well" by:

• Identifying the key tasks the organization must complete to fulfill its mission and to achieve its goals, • Grouping those tasks into productive and meaningful jobs, • Creating organizational structure to coordinate/integrate workflows and to delegate authority and accountability and • Developing the organization's culture in support of the organization's core values, goals, and strategies

Development is achieved through many of the same approaches used to train an employee plus some of the following:

• Job rotations to expand the experience of the employee with other jobs at the same level as their current job. These job rotations can be in different departments in the same function, different functions, different businesses, and/or different geographies. • Sponsoring formal education programs including tuition reimbursement for advanced studies, seminars, or workshops. Some organizations have internal programs for developing managerial and leadership skills which are made available to selected participants based on recommendations from supervisors or through identification of the employee as someone capable of moving to higher positions as part of the formal employee appraisal process as discussed later in this Topic. • Mentorship programs where employees meet regularly with more senior members of the organization to discuss issues and development challenges and to gain valuable insights in how to advance their career.

When employees feel a commitment towards their employer, that commitment often translates to

• Less absenteeism • Lower turnover • More willingness to offer constructive suggestions • More likelihood of sharing favorable commentary about the company with coworkers and others • More willingness to engage in training and self-development activities • More of a desire to contribute discretionary effort in support of the organization.

The clustering of jobs into work groups is done to:

• Make it easier for individuals to collaborate with others as necessary to perform their tasks, • Create clear responsibility and accountability for a sub-group of the organization to coordinate and complete a collection of tasks that requires the involvement of multiple employees, and • Make clear the delegation of authority for making and approving decisions including clearly establishing reporting relationships among employees (e.g., identifying who is the boss).

several actions successful leaders take to address this challenge. Those key actions include:

• Networking and Relationship Building • Unwavering Commitment to a Moral Compass and the Vision/Mission of the Organization • Demonstrating Emotional Intelligence • Enabling Others to Succeed

Discretionary effort is going above and beyond the requirements and usual expectations of the job in order to further support the company's success. This can take the form of:

• Putting in extra time and effort to complete tasks • Offering innovative and/or constructive solutions to challenges facing the organization • Volunteering for additional work assignments • Mentoring others in the organization • Other activities not normally expected of the employee that are beneficial to the organization and its members.

7 BCG dimensons

• Structured vs Flexible: How specifically are processes and acceptable behaviors defined? How closely are they followed in practice? • Controlling vs Delegating: To what extent is power and decision making concentrated at the top or diffused throughout the organization • Cautious vs Risk Permitting: How much does the organization support risk taking? • Thinking vs Doing: To what degree do people spend time developing ideas versus executing them? • Diplomatic vs Direct: How transparent are interactions and communications between workers and managers? • Individualistic vs Collaborative: To what extent are employees concerned with their own individual performance versus shared goals? • Internal vs External: To what extent are processes and behaviors oriented toward the outside world versus the internal environment

Conflict in the workplace can occur for many reasons:

• There can be a genuine dislike between two or more individuals in the workplace that has developed over an extended period of time that finally manifests itself in inappropriate behaviors towards each other and fellow workers. • Individuals may be experiencing personal problems including anxiety, health issues, family issues, financial problems, or other difficulties that impact their ability to interact appropriately with coworkers, bosses or subordinates. • The organization's culture may be negatively impacted by recent management actions including lay-offs, corrupt activities, unfavorable news headlines, inappropriate behaviors, poor business performance, delayed compensation reviews, or other negative events. • A manager's "style" of leadership may be provoking tension and disruptive actions on the part of subordinates, peers, or bosses. • Troubling external events in the news, vocalized political affiliations, vocalized religious affiliations, even obvious sports team affiliations can lead to heated discussions and emotional outbursts that degenerate into personal attacks (hopefully only in words but in severe cases, even in physical attacks). • Management inaction to effectively respond to conflict in the workplace can encourage, rather than discourage, more conflict. • Finally, some conflict is only the result of genuine differences of opinion on strictly business-related questions and issues. While this is also a form of conflict, unlike the conflicts previously described, this form of conflict can actually be beneficial to the organization if managed properly.