Management Exam 2

unifies employees or members and gives everyone an understanding of the organization's reason for being

common purpose

organizational cultures can be classified into four types: 1. clan 2. adhocracy 3. market 4. hierarchy

competing values framework

The process of fitting the organization to its environment

contingency design

the creation of alternative hypothetical but equally likely future conditions.

contingency planning

people are conformist, generally adhering to the expectations of others

conventional level moral development

the coordination of individual efforts into a group or organizationwide effort

coordinated effort

important decisions are made by middle-level and supervisory-level managers.

decentralized authority

the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy.

delegation

educating professionals and managers in the skills they need to do their jobs in the future.

development.

is the tendency of the parts of an organization to disperse and fragment.

differentiation

occurs when people are hired or promoted—or denied hiring or promotion—for reasons not relevant to the job, such as skin color or national origin

discrimination

operating several businesses to spread the risk.

diversification strategy

having discrete parts of a task done by different people

division of labor

represent the values and norms actually exhibited in the organization.

enacted values

explicitly stated values and norms preferred by an organization

espoused values

careful monitoring of an organization's internal and external environments to detect early signs of opportunities and threats that may influence the firm's plans.

establishing a grand strategy: Environmental scanning

defined as leadership that is directed by respect for ethical beliefs and values for the dignity and rights of others.

ethical leadership

Every now and then, a company has to issue a product recall for defective products, but recently there has been almost a "recall sprawl." GM's Cobalt Recall. In 2004 (five years before the company's bankruptcy and government takeover), General Motors received the first reports of engines suddenly shutting down in Chevrolet Cobalts, owing to a defective ignition switch, a condition that ultimately led to 13 fatal crashes. It was not until December 2013, however, when Mary Barra (introduced in Chapter 1) was about to become GM chief, that top management was alerted to the problem, proving the adage that the larger an organization gets, the less likely bad news will travel smoothly up the hierarchy.60 Although government regulators had been alerted in 2007, they did not open an investigation.61 Barra herself said she had known nothing about the matter prior to becoming CEO. Barra Steps Up. In 2014, amid a firestorm of consumer criticism, GM issued recalls, for Cobalts and other vehicles, covering 6.3 million cars and trucks.62 In a move intended to reassure the public that GM had become more trustworthy and less bureaucratic and arrogant since it emerged from bankruptcy, Barra also testified before a congressional committee, but "her measured, carefully worded responses only seemed to inflame senators," says one report.63 On the other hand, Barra has met with families of people killed in Cobalt accidents, something old GM managers would not have done. She also ordered an internal investigation to find out why GM failed to fix a safety defect for more than a decade.64 YOUR CALL For GM, "Mary Barra seems to fully embody the position of the CEO who is sorry," says business ethics professor Amy Sepinwall. "She recognizes that she has to pass on the [corporation's] deepest regrets, and I think she's been pretty convincing on that score."65 Do you agree? What else should she have done?

example Ch. 3 Managing the Media: What's the Best Practice for Handling Product Recalls?

Since 1997, women have started 608 new businesses every day, making up 30% of all U.S. businesses and providing one out of seven jobs among privately owned firms.211 Moreover, venture capital firms that invested in women-led companies during the decade 2000-2010 outperformed those that didn't.212 Women-led venture-backed companies earn 12% more revenue than male-led companies.213 Women in Tech. Despite such achievements, women are significantly underrepresented among the tech companies of Silicon Valley, long a male stronghold. Google's global staff is only 30% female, Facebook's 31%, and Yahoo's 38%.214 In part, suggests one writer, women may not be going into tech to begin with because so many are brought up to assume that girls are not good at science or math and so do not see themselves as computer scientists.215 Frat-Boy Behavior. Lack of gender diversity doesn't necessarily result in a culture of sexism and sexual harassment. But sometimes it is exceedingly so. Sexist attitudes start in computer science classes, women say, and are reinforced by the tech industry's "brogrammer" ("bro" + "programmer") fraternity-house attitudes and behavior of some male software engineers and executives.216 "Bro culture" also is said to lock many minorities out.217 YOUR CALL Recently, regulators, venture capitalists, tech companies, and women themselves have been making serious efforts to achieve more diversity in the tech sector.218 Still, do you see sexist and demeaning behavior in the culture of your campus, which you worry you might encounter later in a future workplace?

example Ch. 9 Gender Discrimination: Silicon Valley and the "Brogrammer" Culture

The key fact about computer technology is its capacity for disruption—disruption of service industries, certainly, such as book selling, music, or air travel, but also disruption in the world's access to knowledge, in health care, in energy sources, and many other matters. Availability of Knowledge: Boon to Students, Device Geeks, and Everyone Everywhere. By 2020, smartphones will cost less than $50 and inexpensive Internet access will be available by drones, balloons, and microsatellites to another 3 billion of the earth's people, suggests scholar Vivek Wadhwa. "This will be particularly transformative for the developing world," he believes. "Soon everyone, everywhere, will have access to the ocean of knowledge on the Internet."71 Computerization is already changing manufacturing, for instance, and assembly lines cranking out standardized products are yielding to customized production. Unquestionably, the shorter product life cycles and frequently changing software packages will require rapid skill updates and continuous learning among workers. However, the availability of low-cost electronics and desktop 3-D printers can also, say experts Mark Muro and Kelly Kline, be a spur to "thousands of hobbyist craftspeople, self-taught designers, students, and device geeks" to develop their manufacturing skills and entrepreneurship.72 Engineering of Life: Gene Modification. Wadhwa points out that another truly revolutionary technology that's recently come into the mainstream is CRISPR gene modification. CRISPRs are the elements of a bacterial defense system and can be programmed to edit DNA and allow researchers to permanently modify genes in living cells and organisms. Thus, Wadhwa suggests, CRISPR modification could be used to treat genetic causes of diseases such as cystic fibrosis, sickle-cell anemia, and Alzheimer's, among other applications.73 More Awkward Communication? Mobile Devices Changing Human Relations. How confident are you in your communication and social skills? With nearly half of 18- to 29-year-olds saying they use their smartphones to "avoid others around you," according to a 2015 Pew Research Center survey, is an entire generation coming along that can't deal with the awkwardness of face-to-face human relations?74 Is their avoidance of using their phones to even talk to each other an all-out flight from personal contact?75 "With knowledge of, and access to, the billions of people sharing the planet has come a new loneliness," suggests columnist Roger Cohen.76 We consider this subject in more detail in Chapter 15 on communication. YOUR CALL Which technological change do you think is apt to affect you personally during the next decade? What kind of strategies for change will managers have to adopt?

example ch 3. Technology Changes Everything

"What makes culture so important is that it's unique; it's something that no one can copy," says Ian C. Read, chairman and CEO of Connecticut-based Pfizer Pharmaceuticals. "Culture can become your competitive advantage. Get it wrong and you'll pay dearly for it ... for years to come."40 Read became head of Pfizer in December 2010, after mismanagement ("micro micro" management, or indecisiveness) by the previous CEO failed to lift the company's fortunes.41 Read has instituted a commitment to "our OWNIT! culture. I challenged Pfizer's leaders to recognize that they can only own the future if they own change and can make change work for us, not against us." Pfizer employees, he asserts, "understand that our ownership culture can differentiate us within our industry. They also understand it requires a willingness to take prudent risks, be accountable for their decisions and results, and understand how their work contributes to the company's performance." The success of the culture especially depends on the efforts of first- and second-line managers, who create a climate of trust that is "essential to providing the space employees need to work, take considered risks, and own the results," he says. Organizational cultures are nearly as varied as human personalities, and conflicting cultures can exist within thePage 249 same organization. Sometimes they interfere with each other, but sometimes competing cultures may be strong contributors to an organization's success. Consider the different cultures associated with Pfizer, both before Read took over and during his tenure. Do you recognize the different types? $2.3 Billion in Fines. In 2009, Pfizer was fined $2.3 billion for improperly marketing drugs to doctors. "The whole culture of Pfizer is driven by sales," said a former sales representative whose complaint helped the government's case, "and if you didn't sell drugs illegally, you were not seen as a team player."42 Almost every major drug company has in recent years been accused of giving kickbacks to doctors or shortchanging federal programs. Free Prescription Drugs to Unemployed. But also in that year, as unemployment hovered around 10% in the United States, Pfizer launched a program in which it offered to supply 70 of its name-brand drugs, such as Lipitor and Viagra, free of charge for up to a year to customers who had lost their jobs and lacked prescription coverage. "We did it because it was the right thing to do," said Pfizer's then CEO. "But it was motivational for our employees and got a great response from customers. In the long run, it will help our business."43 Ongoing Experimentation. At Pfizer, drug discovery is a high-risk, costly endeavor in which hundreds of scientists screen thousands of chemicals against specific disease targets, but 96% of these compounds are ultimately found to be unworkable. The culture, then, is one of managing failure and disappointment, of helping drug researchers live for the small victories. Thus, says one account, "when a researcher publishes a paper, or when a lab gets some positive results on a new therapy, it's trumpeted throughout the organization."44 Another example of experimentation, aimed at helping remaining employees to be productive after heavy job cuts, is PfizerWorks, in which 4,000 employees pass off tedious and time-consuming parts of their jobs, such as creating PowerPoint slides and riffling through spreadsheets, to outsiders in India.45 Shedding U.S. Corporate Citizenship to Lower Taxes. In 2015, Read informed federal officials that Pfizer, which was founded in Brooklyn in 1849, proposed to merge with Dublin-based Allergan, maker of Botox, and to move the company's headquarters to Ireland, a lower-tax country, thereby significantly cutting Pfizer's U.S. tax bill.46 He defended the move, which is called an "inversion," by saying it could result in more cash that could be invested in the United States and ultimately add jobs. Critics decried it as a gift to an industry "that's blessed with lengthy drug patents that stave off competition, keep prices high, and protect earnings for years."47 Calling the plan "one of the most insidious tax loopholes out there," the Obama administration tightened tax rules, removing the planned inversion's benefits. Pfizer and Allergan called off the merger.48 YOUR CALL What cultural types are illustrated in these examples? Does it make more sense that a company would have one dominant cultural type or an equal mixture of clan, adhocracy, market, and hierarchy? Explain your rationale.

example ch 8 Cultures Representing Competing Values: The Different "Personalities" of Pfizer Pharmaceuticals

consists of the task environment and the general environment.

external environment

attracting job applicants from outside the organization.

external recruiting

all employees within a business unit are ranked against one another, and grades are distributed along some sort of bell curve.

forced ranking performance review systems

(1) Utilitarian (2) Individual (3) Moral-rights (4) Justice

four approaches to deciding ethical dilemmas.

a means of evaluating strategic business units on the basis of (1) the market/industries growth rates and (2) their share of the market.

he BCG matrix

s guided by what will result in the individual's best long-term interests, which ultimately is in everyone's self-interest.

Individual—ethical behavior

are conducted on an unscheduled basis and consist of less rigorous indications of employee performance.

Informal appraisals

is the tendency of the parts of an organization to draw together to achieve a common purpose.

Integration

making people already employed by the organization aware of job openings, as through job postings.

Internal recruiting

are changes in the economic, political, legal, and technological global system that may affect an organization.

International forces

(a) The unstructured interview (b) The structured interview type 1: Situational interview (c) Structured interview type 2: behavioral-description interview

Interviewing takes three forms

(1) Be a good global corporate citizen; (2) be ethical in its practices; (3) obey the law; and (4) make a profit.

Archie Carroll, suggests the responsibilities of an organization in the global economy should have the following priorities:

an employee retires or when the company eliminates his or her job, and the employer leaves the vacancy unfilled.

Attrition occurs when

-1974 Employee Retirement Income Security Act (ERISA): Sets rules for managing pension plans; provides federal insurance to cover bankrupt plans -1993 Family & Medical Leave Act: Requires employers to provide 12 weeks of unpaid leave for medical and family reasons, including for childbirth, adoption, or family emergency -1996 Health Insurance Portability & Accountability Act (HIPPA): Allows employees to switch health insurance plans when changing jobs and receive new coverage regardless of preexisting health conditions; prohibits group plans from dropping ill employees -2007 Fair Minimum Wage Act: Increased federal minimum wage to $7.25 per hour on July 24, 2009

Compensations and Benefits regulations

are covered by the Social Security Act of 1935 and the Fair Labor Standards Act, which established minimum wage and overtime pay regulations.

Compensation and benefits

compete for customers or resources.

Competitors

-1963 Equal Pay Act Requires men and women be paid equally for performing equal work -1964, amended 1972 Civil Rights Act, Title VII Prohibits discrimination on basis of race, color, religion, national origin, or sex -1967, amended 1978 and 1986Age Discrimination in Employment Act (ADEA) :Prohibits discrimination in employees over 40 years old; restricts mandatory retirement -1990 Americans with Disabilities Act (ADA): Prohibits discrimination against essentially qualified employees with physical or mental disabilities or chronic illness; requires "reasonable accommodation" be provided so they can perform duties -1991 Civil Rights Act: Amends and clarifies Title VII, ADA, and other laws; permits suits against employers for punitive damages in cases of intentional discrimination

Equal Employment opportunity regulations

is covered by the Equal Employment Opportunity (EEO) Commission, whose job it is to enforce antidiscrimination and other employment-related laws.

Equal employment opportunity

consist of general economic conditions and trends—unemployment, inflation, interest rates, economic growth—that may affect an organization's performance.

Economic forces

different economic pictures, different strategies by competitors, different budgets, and so on.

Elements that can be included in contingency planning

s are labor unions and employee associations.

Employee organizations

any procedure used in the employment selection decision process

Employment tests

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

Formal appraisals

(1) labor relations, (2)compensation and benefits, (3) health and safety, (4) equal employment opportunity.

Four areas of human resource law

group activities around defined regional locations.

Geographic divisions

are regulatory agencies that establish the ground rules under which the organization operates.

Government regulators

-1970 Occupational Safety & Health Act (OSHA): Establishes minimum health and safety standards in organizations -1985Consolidated Omnibus Budget Reconciliation Act (COBRA): Requires an extension of health insurance benefits after termination -2010 Patient Protection & Affordable Care Act: Employers with more than 50 employees must provide health insurance

Health and Safety Regulations

are covered by the Occupational Safety and Health Act of 1970, among other laws.

Health and safety

Thrust: Control Means: Capable processes, consistency, process control, measurement Ends: Efficiency, timeliness, smooth, functioning

Hierarchy Culture: Thrust, Means, Ends

-Take a problem-solving approach, avoid criticism, and treat employees with respect. -Be specific in describing the employee's present performance and in the improvement you desire. Describe your subordinate's current performance in specific terms and concentrate on outcomes that are within his or her ability to improve. -Get the employee's input. In determining causes for a problem, listen to the employee and get his or her help in crafting a solution.

How to Give Performance Feedback to Employees

the activities managers perform to plan for, attract, develop, and retain an effective workforce

Human resource (HR) management consists of

is guided by respect for the impartial standards of fairness and equity.

Justice—ethical behavior

-1974 Privacy Act:Gives employees legal right to examine letters of reference concerning them -1986 Immigration Reform & Control Act: Requires employers to verify the eligibility for employment of all their new hires (including U.S. citizens) -2003 Sarbanes-Oxley Act: Prohibits employers from demoting or firing employees who raise accusations of fraud to a federal agency

Labor Relations Regulation

are dictated in part by the National Labor Relations Board, which enforces procedures whereby employees may vote to have a union and for collective bargaining.

Labor relations

(1) preconventional level of moral development (2) conventional level (3) postconventional level

Laurence Kohlberg proposed three levels of personal moral development

-have authority to make decisions and usually have people reporting to them. -represented by solid line on organization chart

Line managers

are residents, companies, governments, and nonprofit entities that depend on the organization's taxes, payroll, and charitable contributions.

Local communities

internal and external

Managers operate in two organizational environments

(1)Environment—mechanistic versus organic (2)Environment—differentiation versus integration (3)Link between strategy, culture, and structure

Managers taking a contingency approach must consider the following factors in designing the best kind of structure for their particular organization at that particular time:

Thrust: Compete Means: Customer focus, productivity, enhancing competitiveness Ends: Market Share, profitability, goal achievement

Market Culture: Thrust, Means, Ends

-Centralized hierarchy of authority -many rules and procedures -specialized tasks -formalized communication -few teams or task forces -narrow span of control, taller structure -effective in stable and simple environments

Mechanistic Organizations

are less concerned with finding financial success than with making a difference and achieving a meaningful life.

Millennials

is guided by respect for the fundamental rights of human beings, such as those expressed in the U.S. Constitution's Bill of Rights.

Moral-rights—ethical behavior

-This means a manager has a limited number of people reporting -An organization is said to be tall when there are many levels with narrow spans of control.

Narrow Span of Control

(1) The cost-leadership strategy (2) The differentiation strategy (3) The cost-focus strategy. (4) The focused-differentiation strategy

Porter's four competitive strategies

suggests that business-level strategies originate in five primary competitive forces in the firm's environment: (1) threats of new entrants, (2) bargaining power of suppliers, (3) bargaining power of buyers, (4) threats of substitute products or services, and (5) rivalry among competitors.

Porter's model for industry analysis

customer goodwill, more efficient and loyal employees, better quality of job applicants and retained employees, enhanced sales growth, less employee misconduct and fraud, better stock price, and enhanced profits.

Positive ethical behavior and social responsibility can pay off in the form of

established requirements for proper financial record keeping for public companies and penalties for noncompliance.

Sarbanes-Oxley Act of 2002

take actions that will benefit the interests of society as well as of the organization.

Social responsibility is a manager's duty to

are influences and trends originating in a country, society, or culture's human relationships and values that may affect an organization.

Sociocultural forces

are groups whose members try to influence specific issues that may affect the organization

Special-interest groups

, looks at where the organization stands internally and externally—to determine what's working and what's not, to see what can be changed so as to increase efficiency and effectiveness in achieving the organization's vision.

Step 2 in the strategic-management process, assess the current reality

join forces to achieve advantages neither organization can perform as well alone.

Strategic allies

is the translation of the grand strategy into more specific strategic plans, choosing among different strategies and altering them to best fit the organization's needs.

Strategic formulation

developing a systematic, comprehensive strategy for (a) understanding current employee needs and (b) predicting future employee needs.

Strategic human resource planning consists of

managers from all parts of the organization in the formulation and implementation of strategies and strategic goals.

Strategic management involves

the organization's long-term goals and ways to achieve them.

Strategic planning determines

attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company.

Strategic positioning

is the creation of a unique and valuable position, requires trade-offs in competing, and involves creating a "fit" among activities, so that they interact and reinforce each other.

Strategic positioning is based on the principles that Strategy

(1) Porter's four competitive strategies, (2) diversification strategy, (3) blue ocean strategy, and (4) the BCG matrix.

Strategy formulation (Step 3 in the strategic-management process) makes use of several concepts,

a manager's perceptions of an employee's traits or behaviors.

Subjective appraisals are based on

provide supplies—raw materials, services, equipment, labor, or energy—to other organizations

Suppliers

since business creates some problems (such as pollution) it should help solve them.

Supporting viewpoint of social responsibilty

(1) in being responsive to customers, (2) in innovating, (3) in quality, and (4) in effectiveness.

Sustainable competitive advantage occurs when an organization is able to get and stay ahead in four areas:

offer products or services that are of unique and superior value compared with those of competitors and to target a narrow market.

The focused-differentiation strategy

(1) Economic forces (2) Technological forces (3) Sociocultural forces (4) Demographic forces (5) Political-legal forces (6) International forces

The general environment includes six forces

are print, radio, TV, and Internet sources that affect the organization's public relations.

The mass media

expresses the organization's purpose or reason for being.

The mission statement

to get the optimal work performance that will help realize the company's mission and vision.

The purpose of the strategic human resource management process is

the screening of job applicants to hire the best candidates.

The selection process

They can (1) provide direction and momentum, (2) encourage new ideas, and (3) develop a sustainable competitive advantage.

Three reasons an organization should adopt strategic management and strategic planning:

background information, interviewing, and employment tests.

Three types of selection tools are

orientation, training, and development.

Three ways in which newcomers are helped to perform their jobs are

refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources.

authority

-the core values of the organization. -hardest to observe

basic assumptions

important decisions are made by higher-level managers.

centralized authority

Like a family-type organization, it encourages collaboration among employees, striving to encourage cohesion through consensus and job satisfaction and to increase commitment through employee involvement. Clan organizations devote considerable resources to hiring and developing their employees, and they view customers as partners.

characteristics of a clan culture

The more subunits into which an organization breaks down, the more highly differentiated it is. This impulse toward dispersal arises because of technical specialization and division of labor. As a result, specialists behave in specific, delimited ways, without coordinating with other parts of the organization.

characteristics of a differentiated organization

the specialists work together to achieve a common goal. The means for achieving this are a formal chain of command, standardization of rules and procedures, and use of cross-functional teams and computer networks so that there is frequent communication and coordination of the parts.

characteristics of a highly integrated organization

driven by competition and a strong desire to deliver results, customers, productivity, and profits take precedence over employee development and satisfaction. Employees are expected to work hard, react fast, and deliver quality work on time; those who deliver results are rewarded.

characteristics of a market culture

This type of culture attempts to create innovative products by being adaptable, creative, and quick to respond to changes in the marketplace. Employees are encouraged to take risks and experiment with new ways of getting things done. Adhocracy cultures are well suited for start-up companies, those in industries undergoing constant change, and those in mature industries that are in need of innovation to enhance growth.

characteristics of an adhocracy culture

Companies with this kind of culture are apt to have a formalized, structured work environment aimed at achieving effectiveness through a variety of control mechanisms that measure efficiency, timeliness, and reliability in the creation and delivery of products.

characteristics of hierarchy culture

the organizational culture that has an internal focus, and values flexibility rather than stability and control.

clan culture

a person whose accomplishments embody the values of the organization.

hero

the type of organizational culture that has an internal focus and values stability and control

hierarchy culture

a control mechanism for making sure the right people do the right things at the right time

hierarchy of authority (chain of command)

the economic or productive potential of employee knowledge

human capital

is the tendency of the parts of an organization to draw together to achieve a common purpose

integration

Two types of recruiting are

internal and external

of stakeholders, the people whose interests are affected by the organization's activities.

internal and external organizational environments both are made up of

includes employees, owners, and the board of directors.

internal environment

people whose occupations are principally concerned with generating or interpreting information, as opposed to manual labor

knowledge workers

making charitable donations to benefit humankind.

philanthropy

people are guided by internal values.

postconventional level of moral development

people tend to follow rules and to obey authority

preconventional level of moral development

replacing an employee with a new employee.

promotions, transfers, disciplining, and dismissals often involve

the concept of base pay consists of the basic wage or salary paid employees in exchange for doing their jobs.

wages or salaries,

on-the-job training methods and off-the-job training methods.

what can affect development and training

Strategic management works best for large firms but can also be effective for small firms

who can use strategic management

Most performance appraisals are made by managers, but they may also be made by coworkers and subordinates, customers and clients, and employees themselves (self-appraisals).

who makes performance appraisals?

gives a candidate a picture of both positive and negative features of the job and organization before he or she is hired.

realistic job preview

the obligation you have to perform the tasks assigned to you.

responsibility

not discouraging whistle-blowers, employees who report organizational misconduct to the public.

rewarding ethical behavior

behavioral-description interview

the interviewer explores what applicants have actually done in the past.

representing people, planet, and profit

the triple bottom line

an organization's social, environmental, and financial performance.

the triple bottom line measures

(1) Top managers must support a strong ethical climate. (2) The organization may have a code of ethics (3) An organization must reward ethical behavior,

three ways an organization may foster high ethical standards.

creating a vision or projection of the future.

tool for developing a grand strategy: Forecasting

SWOT analysis, forecasting, benchmarking, and Porter's model for industry analysis

tools for assessing the current reality

competitive intelligence, SWOT analysis, forecasting, benchmarking, and Porter's model for industry analysis.

tools for assessing the current reality

a hypothetical extension of a past series of events into the future

trend analysis,

wages or salaries, incentives, and benefits.

types of compensation

ability tests, personality tests, performance tests, and integrity tests

types of employment tests

objective and subjective.

types of performance appraisals

in which an employee should report to no more than one manager

unity of command

—the test measures what it purports to measure and is free of bias

validity

layoffs, downsizings, or firings.

Dismissals may consist of

is a large-scale action plan that sets the direction for an organization

A strategy

results when employees from protected groups (such as disabled individuals) are intentionally treated differently.

Disparate treatment

help another organization sell its goods and services to customers

Distributors

Nowadays a firm can be completely international. An example is the medical device start-up EndoStim, nominally based in St. Louis but operating everywhere. The company, reports New York Times columnist Thomas Friedman, came together as a result of some chance encounters:22 Cuban immigrant Raul Perez, a physician, came to St. Louis, where he met Dan Burkhardt, a local investor, with whom he began making medical investments. Perez also suffered from acid reflux (abnormal heartburn caused by stomach acid rising in the esophagus) and went to Arizona for treatment by an Indian American physician, V. K. Sharma. During the visit, Sharma proposed an idea for a pacemaker-like device to control the muscle that would choke off acid reflux. The Strategy: Creating a New Medical Device. Perez, Burkhardt, and Sharma all agreed they wanted to build such an electrical-stimulation device. They joined forces with South Africa-born Bevil Hogg, a founder of Trek Bicycle Corporation, who became the CEO of the company they named EndoStim and who helped to raise initial development funds. (Hogg was succeeded later by Rohan Hoare, PhD, of The Netherlands, educated in Australia and at Harvard.)23 This strategy then began to dictate whom they had to work with, which in turn influenced the company's culture and structure. The Culture: An International "Adhocracy." To advance their strategy of building the device, the four principals recruited two Israelis, a medical engineer and a gastroenterologist. The Israelis collaborated with a Seattle engineering team to develop the design. A company in Uruguay specializing in pacemakers was lined up to build the EndoStim prototype. It was arranged for the clinical trials to be conducted in India and Chile. How much more international can you get? Thus, the culture of the company could be called an adhocracy, which (as we'll describe a little later in the chapter) is a risk-taking culture that values flexibility and creativity and that is focused on developing innovative products. The Structure: A Virtual, Boundaryless Company. As a very lean start-up operating all over the world, with the principals rarely in the same office at the same time, EndoStim is clearly very different from, say, the usual top-down organization operating in one locality. To access the best expertise and high-quality materials and obtain low-cost manufacturing anywhere around the globe, EndoStim thus was forced to take advantage of all the technological tools—teleconferencing, e-mail, the Internet, and faxes—to maintain communications. This EndoStim structure, then, is that of a virtual, boundaryless organization—virtual because its members are operating geographically apart, connected by electronic means, and boundaryless because the members (whether coworkers or suppliers) come together in fluid, flexible ways on an as-needed basis. We describe these structures further in another few pages. YOUR CALL Are you comfortable enough to work in a virtual, boundaryless organization? Many people like the social interaction that comes with working in a physical office with other people. Others, however, are turned off by the office game playing and time-wasting activities that seem to be a necessary concomitant. They welcome the opportunity to do task-oriented work in a makeshift home office, occasionally having to cope with loneliness and restlessness. Which would you favor?

Example ch 8 How Strategy Affects Culture and Culture Affects Structure: EndoStim, a Medical Device Start-up, Operates Virtually

are changes in the way politics shapes laws and laws shape the opportunities for and threats to an organization.

Political-legal forces

(1) a growth strategy (2) a stability strategy (3) a defensive strategy

Three common grand strategies

(1) human capital (2) knowledge workers (3) social capital

Three concepts important to human resource management are

a) discrimination, (b) affirmative action (c) sexual harassment

Three important concepts covered by EEO

the degree to which a test measures the same thing consistently

test reliability

Thrust: Collaborate Means: Cohesion, participation, communication, empowerment Ends: Morale, commitments, people development

Clan Culture: Thrust, Means, Ends

a firm expands into businesses that provide the supplies it needs to makes products or that distribute and sell its products.

(example of diversification) vertical integration

one aspect of climate change, refers to the rise in global average temperature near the Earth's surface, caused mostly by increasing concentrations in the atmosphere of greenhouse gases, such as carbon emissions from fossil fuels.

. Global warming

(1) Customers (2) Competitors (3) Suppliers provide . (4) Distributors (5) Strategic allies (6) Employee organizations (7) Local communities . (8) Financial institutions . (9) Government regulators (10) Special-interest groups (11) The mass media

11 groups of the task environment

Formal statements Slogans & sayings Rites & rituals Stories, legends, & myths Leader reactions to crises Role modeling, training, & coaching Physical design Rewards, titles, promotions, & bonuses Organizational goals & performance criteria Measurable & controllable activities Organizational structure Organizational systems & procedures

12 mechanisms for creating change in the culture of an organization

employees are appraised not only by their managerial superiors but also by their peers, subordinates, and sometimes clients.

360-degree assessment

(1) define performance, (2) monitor and evaluate performance, (3) review performance (4) provide consequences.

4 steps of performance management

Simple, Functional, Divisional, and Matrix Structures

4 traditional designs of an organization

is defined as one with an organizational structure with few or no levels of middle management between top managers and those reporting to them

A flat organization

climate change, which refers to major changes in temperature, precipitation, wind patterns, and similar matters over several decades.

A major threat to sustainability

express the organization's purpose or reason for being.

A mission statement should

is a contract between two parties that prohibits one party from criticizing the other; it is often used in severance agreements to prohibit former employees from criticizing their former employers.

A nondisparagement agreement

describe what the organization stands for, its core priorities, the values its employees embody, and what its products contribute to the world. Values statements must not be hollow; they must be ingrained, inherent, and sacrosanct and can never be compromised.

A values statement should

be positive and inspiring, and it should stretch the organization and its employees to achieve a desired future state that appears beyond its reach.

A vision statement should

is a formal conversation between a manager and a departing employee to find out why he or she is leaving and to learn about potential problems in the organization

An exit interview

is a system of consciously coordinated activities or forces of two or more people.

An organization

is bullying, repeated mistreatment by one or more perpetrators. Bullying is abusive physical, psychological, verbal, or nonverbal behavior that is threatening, humiliating, or intimidating.

Another area of concern, though not covered by EEO laws

philanthropy

Another type of social responsibility is

means that managers must report and justify work results to the managers above them.

Accountability

Thrust: Create Means: Adaptability, creativity, agility Ends: innovation, growth, cutting edge output

Adhocracy culture: Thrust, Means, Ends

-Applicants may have specialized knowledge and experience. -Applicants may have fresh viewpoints.

Advantages of external recruiting

-Employees tend to be inspired to greater effort and loyalty. Morale is enhanced because they realize that working hard and staying put can result in more opportunities. -The whole process of advertising, interviewing, and so on is cheaper. -There are fewer risks. Internal candidates are already known and are familiar with the organization.

Advantages of internal recruiting

occurs when an organization uses an employment practice or procedure that results in unfavorable outcomes to a protected class (such as Hispanics) over another group of people (such as non-Hispanic whites).

Adverse impact

to create an objective view of everything the organization does: its sources of revenue or funding, its work-flow processes, its organizational structure, client satisfaction, employee turnover, and other matters.

An assessment helps

refers to a company's creating a new, uncontested market space that makes competitors irrelevant, creates new consumer values, and decreases costs.

Blue ocean strategy

-boundaryless organization is a fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks. The collaborators may include not only coworkers but also suppliers, customers, and even competitors -this means that the form of the business is ever-changing, and business relationships are informal.

Boundaryless organization

application forms, resumes, and reference checks.

Background information is ascertained through

measure specific, observable aspects of performance.

Behavioral appraisals

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

Benchmarking

additional non monetary forms of compensation, such as health insurance, retirement plans, and family leave.

Benefits

consists of a formal written set of ethical standards.

Code of Ethics

consists of negotiations between management and employees about disputes over compensation, benefits, working conditions, and job security.

Collective bargaining

-a time-consuming process -the basis of determining the long-term goals of the organization for the next one to five years.

Characteristics of strategy formulation

An organization's culture matters. The type of organizational culture can be a source of competitive advantage. -Employees have more positive work attitudes when working in organizations with clan cultures. - Employees clearly prefer to work in organizations that value flexibility over stability and control, as well as those that are more concerned with satisfying the needs of employees than those of shareholders or customers. -Clan and market cultures are more likely to deliver higher customer satisfaction and market share. We suspect this result holds because the positive employee attitudes associated with clan cultures motivate employees to provide better customer service. -Operational outcomes, quality, and innovation are more strongly related to clan, adhocracy, and market cultures than to hierarchical ones. Managers should avoid the use of too many rules and procedures—hierarchical characteristics—when trying to improve these outcomes. An organization's financial performance (profit and revenue growth) is not strongly related to organizational culture. Only market and hierarchy cultures were associated with financial outcomes. Managers should not expect to immediately increase financial performance when they try to change their organization's culture. This underscores the conclusion that culture change needs time to take hold. -Companies with market cultures tend to have more positive organizational outcomes. Managers are encouraged to make their cultures more market oriented.

Conlclusions about different cultures in an organization

symbols, stories, heroes, rites and rituals, and organizational socialization.

Culture is transmitted to employers through

tend to group activities around common customers or clients.

Customer divisions

pay to use an organization's goods and services.

Customers

More than 80% of midsize and large companies use personality and ability assessments for entry- and mid-level jobs, according to one executive at a global human resources consulting firm.115 Southwest Airlines, for instance, has found the Myers-Briggs test helps build trust in developing teams.116 Hewlett-Packard uses a personality test to see if employees are temperamentally suited to working alone at home—that is, telecommuting—and can handle limited supervision.117 At Children's Healthcare of Atlanta, personality tests are used to find employees who will be "nice people"—those with "the qualities of being nurturing, kind, and warm-hearted," in the words of a human resources vice president.118 Online Personality Tests. At Finish Line, a nationwide chain of sporting-goods stores, store managers use the results of web-based personality tests developed by Unicru, of Beaverton, Oregon, to screen applicants for jobs as retail sales clerks. Candidates may apply through Unicru's kiosks or computer phones, which are installed in the stores. One Finish Line store in Chicago screens as many as 70 applicants a week during the store's preholiday season. Unicru's computer scores test takers according to how strongly they agree or disagree (on a four-point scale) with statements such as "You do not fake being polite" and "You love to listen to people talk about themselves." High scores on attributes such as sociability and initiative reward applicants with a "green" rating that allows them to move on to an interview with a human manager. Scores in the middle earn a "yellow," and a lesser chance of landing a job; low-scoring "reds" are not considered. Measurable Results. "The kinds of people who do well," says Unicru psychologist David Scarborough, "obviously have to have good self-control. They have to be patient. They have to enjoy helping people. All those characteristics are quite measurable."119 Finish Line says that Unicru's system has reduced turnover by 24%. YOUR CALL There are, by some estimates, around 2,500 cognitive and personality employment tests on the market, and it's important that employers match the right test for the right purpose.120 Moreover, tests aren't supposed to have a disparate impact on a protected class of people, such as certain racial or ethnic groups.121 What questions would you want to ask about a personality test before you submitted yourself to it? (Note: Don't try to psych the test. You might wind up being miserable in a job that doesn't suit you.)

Example Ch 9 Personality Tests: How a Sporting-Goods Chain Screens Job Applicants Online

"I fear the pace at which we have grown may have been too quick," said Akio Toyoda, the grandson of Toyota Motor's founder, in 2010 testimony before a U.S. congressional committee looking into sudden acceleration problems. "Priorities became confused, and we were not able to stop, think, and make improvements as much as we were able to before."37 Toyota's U.S. sales fell 9% that month because of safety-related recalls of millions of vehicles, and by late 2010 journalists were writing that the company had lost its edge.38 By the end of 2011, Toyota Motor, formerly the world's largest automaker, had slipped to third place in production behind General Motors and Volkswagen. Toyota's new young president, Akio Toyoda, whose motto is "be fast, be flexible," energetically took on the automaker's problems, traveling to the United States to fire up dealers, personally taking charge of the sagging Lexus brand, and redesigning the firm's reporting system and flattening the management hierarchy.39 In late 2013, profits were up 70%, close to their previous record high, and the company had displaced General Motors as the world's largest automaker; byPage 182 the following year, net profit was up more than fivefold.40 In 2015, it sold more than 10 million vehicles worldwide, edging out Volkswagen and GM, and its profit rose 4.7%.41 Still, the challenges have kept on coming. If you were a top Toyota manager, what would be the kinds of things you would identify in a SWOT analysis? The Internal Strengths. Originally the "Toyota Way," as practiced from assembly line to boardroom, stressed the values of continuous improvement ("kaizen") and eliminating waste ("muda"). The Toyota Way, says one report, "mandates planning for the long term; highlighting problems instead of hiding them; encouraging teamwork with colleagues and suppliers; and, perhaps most important, instilling a self-critical culture that fosters continuous and unrelenting improvement."42 Developed in the 1950s, these precepts later became the basis for such concepts as lean manufacturing and just-in-time inventory management (discussed in Chapter 2). "At their core," says one analysis, "was an attention to detail and a noble frugality that shunned waste of every kind."43 Said its top engineer, "Basically, Toyota's growth has been underpinned by QDR [quality, dependability, reliability] that was very high compared with competitors'."44 QDR has gone a long way to enhance Toyota's image as a strong brand. As of 2016, Toyota continues to lead most other car companies in quality rankings: Its brands appeared in the top 10 J.D. Power 2016 rankings for dependability, with Lexus ranked No. 1 for the fifth consecutive year and Toyota Prius ranked No. 4. Surprisingly, however, the Toyota Scion ranked toward the bottom—clearly a weakness.45 Still, along with a global supply chain and a strong ability to innovate, Toyota Motor has considerable internal strengths indeed. The Internal Weaknesses. In the 1990s, Toyota launched an effort to become the world's largest automaker, embarking on aggressive overseas expansion and doubling its plants in North America, Asia, and Europe. During this time, the focus on cost reduction intensified to the point that the virtue became a vice. Suppliers were continually pushed to design parts that were 10% cheaper and 10% lighter. Common parts were used in most Toyota models, acquired from outside companies instead of trusted traditional suppliers.46 Toyota also began to treat its cars like "transportation appliances," causing it to fall behind in design leadership, making buyers feel less of an emotional connection with Toyota products. The company was said to have succumbed to "big-company disease," becoming ponderous and bureaucratic, with every decision tightly controlled in Japan, to the detriment of its managers in the United States.47 Then came the recall years. Suddenly, from 2000 to 2010, driver complaints to the National Highway Traffic and Safety Administration (NHTSA) about "vehicle speed control" issues soared, with 11.7% of faulty vehicle components identified as Toyota's.48 Next came widely publicized problems with sticking accelerators, prompting two huge recalls of 10 million vehicles and suspension of the sales and production of eight models in the American market.49 Later it developed that the "unintended acceleration" was probably caused by sticky pedals or floor mats rather than Toyota electronics (although some critics thought it traced to driver error).50 In 2014, the company agreed to a $1.2 billion penalty to end a U.S. criminal probe into the sudden-acceleration problems.51 It also admitted it misled American consumers by concealing and making deceptive statements about the acceleration safety issues.52 No sooner had it done so, however, than the company's reputation for integrity, reliability, and assembly-line mastery took another massive hit, when Toyota was forced to recall 6.4 million vehicles for five potential hazards, including faulty power-window switches, possibly unstable steering column brackets, and potential hindrances to deployment of driver's-side air bags.53 In 2015 Toyota recalled an additional 1.4 million cars, trucks, and SUV's after the NHTSA declared many air bags defective (the air bags were made by Takata, a major supplier); that brought the number of Toyota vehicles recalled in the United States to 2.9 million.54 In 2016, another 320 Toyotas were recalled for air bag issues, then another 17,000.55 All the recalls inflicted severe damage to Toyota's vaunted reputation for quality. "When your whole deal was quality, every mistake is a big deal," said a manufacturing expert.56 The External Opportunities. Today, under the new president's direction, the 1950s-style traditional organization has been modernized, with layers of management removed and with Akio meeting weekly with five top advisors to make on-the-spot decisions. The company has also reorganized its vehicle-development system to speed decision making, cut costs, and generate more worldwide appeal.57 In addition, Toyota moved to give its cars more exciting designs, taking initiatives to "improve upon the emotion of cars" with better styling and high-quality interiors.58 It joined forces with Ford to develop a gas-electric hybrid fuel system for trucks and sport utility vehicles and has continued to push greenPage 183 technology, as with the plug-in Prius and a new concept car powered by hydrogen fuel cells.59 It launched the sporty $375,000 Lexus LFA, a carbon fiber supercar. Along with Stanford and M.I.T., it is engaging in $50 million robotics and artificial intelligence research to develop "intelligent" cars—cars that make humans better drivers (a different concept from self-driving cars).60 To take advantage of growing markets in developing countries and the increased demand for fuel-efficient vehicles, Toyota's affiliate, Daihatsu Motor, is building and selling small cars in India.61 Toyota has been lucky in that competitors have had their own problems to deal with. Because Takata air bags appeared in many different makes of cars, 14 automakers were forced to recall 24 million cars to fix air bag mechanisms.62 Volkswagen's emissions cheating scandal with its diesel engines caused a drop in VW's new-car sales and may well cloud the prospects for diesel for years.63 General Motors's fatal ignition switch mistakes, which led to 124 deaths and the recall of 2.6 million vehicles, was described by GM's CEO Mary Barra as representing "a pattern of incompetence and neglect"—and this was only part of the total of GM recalls, which, for this and other reasons, rose to a record 30.4 million cars and trucks.64 Perhaps these setbacks present Toyota with an unprecedented opportunity to grab its rivals' customers. The External Threats. Toyota was able to work past its accelerator-sticking troubles of 2009-2010, which presented its American and European rivals with a chance to cut into the Japanese automaker's market share.65 Like other car companies, Toyota has also faced the worldwide Great Recession, which damaged auto spending. In addition, Toyota had to face setbacks brought about by the 2011 deadly earthquake and tsunami, which devastated plants in the north of Japan and disrupted the supply of over 500 parts, and by flooding in Thailand, which led to new supply difficulties.66 In 2016, it had to shut down 26 car assembly lines in Japan because of disruptions at a parts supplier caused by earthquakes in the southern part of the country.67 In recent years, the company has had to deal with currency problems of a strong yen against a weak U.S. dollar, which further reduced revenues.68 Finally, Toyota competitors have began to close the quality gap, with the Ford Fusion, Hyundai Sonata, Volkswagen Passat, and other midsize vehicles severely impacting sales of the Toyota Camry.69 By 2011, Toyota's market share in the United States had fallen all the way from 18.3% to 12.9%. It bounced back to 13.3% in early 2016, putting it in third place behind General Motors at 16.7% and Ford at 15.7%. YOUR CALL "Comfortably preoccupied with rooting out internal weakness," said one writer in 2010, "the Toyota Way is lost when it comes to contending with outside threats. ... If a flaw does get through, the company as a whole is loath to admit that the system broke down."71 Do you agree? How well do you think its president, Akio Toyoda, is doing in dealing with Toyota's threats and opportunities, both internal and external?

Example Ch. 6 SWOT Analysis: How Would You Analyze Toyota?

Upscale natural and organic-food grocery Whole Foods Market started out in 1980 as one store in Austin, Texas, and today has revenues of $15.3 billion and 447 stores in North America and the United Kingdom.102 It was rated No. 24 in 2016 on Fortune magazine's annual "World's Most Admired Companies" list.103 It has also been chosen as one of Fortune's "100 Best Companies to Work For" every year for 17 years (No. 75 in 2016).104 But as one writer observed, if its values are "soft-hearted," emphasizing Whole Food, Whole People, Whole Planet, "its competitive logic is hard-headed."105 That's because its management strategy is based not on hierarchy but on autonomous profit centers of self-managed teams. "Radical Decentralizing": Empowering Small Teams. One of Whole Foods's core operating principles is that all work is teamwork. Thus, each store is organized into roughly eight self-managed teams, each with a designated team leader. The leaders in each store also operate as a team, as do the store leaders in each region. Additionally, the directors of the company's 11 regions operate as a team. At most retail companies, employees are hired by supervisors (not fellow employees), decisions about what products to order are made by someone high up at central headquarters, and the amounts of people's paychecks are kept secret. Whole Foods, however, believes in "radical decentralizing," in the words of influential management professor Gary Hamel.106 At the individual-store level, compensation is tied to team rather than individual performance, and performance measurements and individual pay schedules are open to all. Each team has the mission of improving the food for which it is responsible; is given wide flexibility in how it manages its responsibilities, hires and fires its members, and stocks its shelves; and is given a lot of power in how it responds to the changing tastes of local consumers. A Steady Diet of Growth. Whole Foods employees are given both the freedom to do the right thing for customers and the incentive to do the right thing for profits. The financial results of this business model are that Whole Foods is the most profitable food retailer in the United Sates, when measured by profit perPage 269 square foot. Although its stock price was down somewhat in 2014, it still was up 12-fold since its 2008 recession-era low.107 YOUR CALL In designing new products, such as cell phones, the horizontal design team approach, known as concurrent engineering or integrated product development, has been found to speed up design because all the specialists meet at once, instead of separately doing their own thing, then handing off the result to the next group of specialists. Why do you think a horizontal design would be better in a retail business such as groceries?

Example Ch. 8 Use of a Horizontal Design: Whole Foods Market

Young adults (Millennials and Gen Z—those born between 1981 and the mid-2000s) are said to be less focused on finding jobs that nourish the wallet than those that nourish the soul, less concerned with finding financial success than on making a difference, as we said at the start of Chapter 3. But will the economy and the job market cooperate? "A lot of people are despairing about the future of America in different ways or about their ability to earn a good steady living," says New York University professor and journalist Farai Chideya. "It's a time of mixed opportunity."52 The Gig Economy. Most of the job growth among American workers during the past decade has been not in traditional jobs but rather among those who work as independent contractors, through temporary services or on-call, which rose 15.8% from 2005 to 2015, according to one study.53 In this so-called gig economy, organizations contract with independent workers—usually through their smartphones—for short-term engagements, and the burden of providing workers' compensation, health insurance, and the like falls on the workers themselves rather than on the employer.54 More than 5% of adults younger than 35 earned some income from an online platform between October 2014 and September 2015, according to some research.55 Regardless of age, low-earning gig workers tend to provide direct labor, such as being on-demand drivers for Uber or furniture movers for TaskRabbit. Top-income gig earners make money mostly from their assets, as by renting their vacation homes through VRBO or selling craft merchandise through Etsy. Although the gig economy employs only 0.5% of the workforce at present, Intuit predicts that by 2020 contingent workers will exceed 40% of American workers, and traditional full-time, full-benefit jobs will be harder to find.56 The Episodic Career. Chideya, mentioned above, is the author of The Episodic Career: How to Thrive at Work in the Age of Disruption.57 Because of decades of wage stagnation, the effects of the Great Recession, and "an incredible sense that perhaps the future will not be better than the past," she says, we have entered into the era of "the episodic career."58 Surviving this challenge will require three qualities, she suggests: Emotional resilience: "The reality is that we're living in a time where there's more and more disruption in the workplace and you absolutely have to roll with the punches," she says. Understanding the job market: If the industry you're contemplating entering or are in is starting to go downhill, you should know it. You may have to "reboot" several times. Self-knowledge: You need to make a list of all the skills you have, including those you don't use for work. "You're not just the job you have now or the job you had five years ago," says Chideya, "you're a compilation of skills and assets, which can be used in many contexts." YOUR CALL What kind of good skills inventory could you bring to the job market? What networks are you keeping alive, including "the weaker ties and links in your network, ... people on the fringes of your circle who live in completely different worlds," who can be the most important in a job search?

Example Ch. 9 The Changing Job Market: Millennials, the Gig Economy, and the Episodic Career

is the tendency of the parts of an organization to disperse and fragment.

Differentiation

-The recruitment process is more expensive and takes longer. -The risks are higher because the persons hired are less well known.

Disadvantages of external recruiting

-Internal recruitment restricts the competition for positions and limits the pool of fresh talent and fresh viewpoints. -It may encourage employees to assume that longevity and seniority will automatically result in promotion. -Whenever a job is filled, it creates a vacancy elsewhere in the organization.

Disadvantages of internal recruiting

are influences on an organization arising from changes in the characteristics of a population, such as age, gender, and ethnic origin.

Demographic forces

is behavior that is accepted as "right" as opposed to "wrong" according to the standard of ethics

Ethical behavior

are the standards of right and wrong that influence behavior

Ethics

where it's going and how to get there

Every organization needs to have a "big picture" which includes

There are all kinds of ways by which corporate social responsibility is expressed. Salesforce.com, a San Francisco business software company, supports all the following four.142 Operating with Integrity. Salesforce.com has adopted Business Conduct Principles and a Code of Conduct that, among other things, support ethical business practices, anticorruption, antidiscrimination, and rejection of forced or involuntary labor. "1/1/1" Charitable Giving. When founder and CEO Marc Benioff set up Salesforce.com in 1999, he also created a foundation with a powerful but simple vision: Donate 1% of Salesforce.com resources, 1% of employees' time, and 1% of the firm's technology to improving communities around the world. For instance, for three years in a row, the Salesforce.com Foundation has written a multi-million-dollar check to the San Francisco school district.143 Journey toward Sustainability. Although Salesforce.com does no manufacturing or mining, it still strives to reduce carbon emissions in the operation of its data centers and office buildings, as well as in employee travel. Fostering Employee Success. At Salesforce.com, says the company, "our goal is to deliver a dreamjob experience for our employees. We are intense, passionate people on a mission to change the way the world works." Employees are so heavily compensated with stock options that the company hasn't posted an actual profit for five years.144 YOUR CALL Do you believe corporate social responsibility really has benefits? Can you think of any highly profitable and legal businesses that do not practice any kind of social responsibility?

Example Ch 3 Corporate Social Responsibility: Salesforce.com Wants to Change the Way the World Works

Big companies—especially big-tech companies such as Amazon, Google, or Apple—"are no longer content simply to enhance part of your life," says one report. "The new strategy is to build a device, sell it to consumers, and then sell them the content to play on it. And maybe some ads too."13 Big-Company Ways. That is, the idea is to get consumers tied not just to a brand or device or platform but to make them captive of the company's system of products and services, and to get them connected "as tightly as possible so they and their content are locked into one system," says analyst Michael Gartenberg.14 Thus, Amazon, for example, sells the Kindle e-book readers at a low price so that it can then sell e-books. "Amazon is in a race to embed itself into the fabric of world-wide commerce in a way that would make it indispensable to everyone's shopping habits," says one columnist, "and to do so before its rivals wise up."15 Amazon's strategy of "free shipping" for its products (actually consumers pay $99 a year for two-day shipping, but then many of them begin to think of it as "free") is another giant competitive advantage big online companies have over small retailers.16 Small-Company Ways. "I don't feel they behave in a way that I want to support with my consumer dollars," says Chicago professor Harold Pollack about big Internet retailers like Amazon.17 So instead, Pollack started buying from small online retailers. Their prices are often higher, but he says he now has a clear conscience. Whereas the strategy of big e-commerce companies is to try to tightly connect consumers with discounted prices, free shipping, and easy-to-use apps, the strategy of small retailers—like Hello Hello Books in Maine—is to discourage price comparisons (as in creating "buy it where you try it" campaigns or refusing to carry popular items carried by big retailers), offer freebies, and attempt to establish a personal or emotional connection with customers. They also try to exploit the sympathies of shoppers to "support the little guy," as Pollack is doing. YOUR CALL Considering the proliferation of price comparison sites (Pricegrabber.com, Bizrate.com, FreePriceAlerts.com) that will usually direct consumers to big e-commerce retailers, do you think low prices will always win in the end? Is there any strategy a small retailer can take to maintain an advantage?

Example Ch 6 Comparing Strategies: Big-Company "Make the Consumer a Captive" versus Small-Firm "Offer Personal Connections"

Most Fortune 500 companies averaged profit margins of around 5% the past 60 years. Imagine a company whose profit margin was an awesome 80%—for years and years. No, we're not talking about Apple, whose profit margin in 2015 was a spectacular 39.7%. We are referring to one of the biggest brands ever ... Kodak. The Curse of Being Profitable. Founded in 1888, the once-great film company filed for bankruptcy in early 2012, supposedly blindsided by the digital revolution and foreign competition.20 Before then, however, it dominated the world of film and popular photography, with film in particular driving the company's expansion. "It is very hard," said Kodak's director of research in those heady days, "to find anything [with profit margins] like color photography that is legal."21 For a long time, many observers believed that film's profitability contributed to Kodak's doom—that managers feared introducing digital technologies would disrupt the company's film-related earnings.22 Indeed, in 1975, the company invented the digital camera—and then supposedly stuck it in a safe lest it destroy its lucrative film business. "By the time Kodak was ready to unleash its digital prowess," says one report, "everyone from Canon to Sony was selling their own digital cameras."23 The conventional story is that myopic managers continued to push forward with Kodak's existing business model—selling film—rather than look at what the market wanted. But the reality is not so simple. The Real Story: Kodak Goes Digital, but Still Loses Out. "Although Kodak had a slow start," says Dartmouth strategy professor Ron Adner, "it did, in fact, manage a miraculous, successful digital transformation," churning out some critical innovations.24 Indeed, by 2005 it ranked No. 1 in U.S. digital-camera sales, and by 2010 it was No. 4 in the inkjet-printer market. So why did it fail? "Kodak was so focused on its own technology transition," says Adner, "that it missed the fact that the improvements in the very same components that gave rise to digital printing would, with further progress, undermine its very basis." Adner is referring to three components critical to digital-imaging systems: charge-coupled devices, or CCDs (which determine resolution in digital cameras); flash memory (which determines how many photos can be stored on a flash card); and LCD screens (which govern the quality of image previews). For a while these technologies helped to accelerate the sales of both digital cameras and home photo printers. But other companies installed CCDs in mobile phones for taking pictures, undercutting the market for digital cameras. As flash-memory capacity improved so that thousands of pictures could be stored and as LCD screen resolution improved, the effect was to cause consumers to want to view most photos on their phones, tablets, and computers—circumventing Kodak's goal of getting users to buy digital printers, photo paper, and printer inks to print photos on paper. Page 175 An Ecosystem Viewpoint. Central to Kodak's failure is the concept of business ecosystem—the economic community of interacting organizations and individuals—including suppliers, lead producers, and other stakeholders—over which Kodak presided in its digital-camera development. The blind spot in Kodak's strategy, Adner believes, was that the company was so focused on trying to develop a new way of printing photos on paper that it failed to see how progress by other companies "in the other components of its ecosystem would eliminate the value of the end goal." Today, he concludes, it's necessary to take an ecosystem, or wide-lens, viewpoint in which you are able to distinguish between two situations: those in which value in a product is created by your own ability and those in which value is affected by the efforts of other firms and technologies. YOUR CALL Do you think automobile companies ought to stick with what they know and focus principally on building better cars for transporting people? What do you think of GM, Ford, and others setting up shop in Silicon Valley, the technology capital of California? What are their concerns?

Example Ch 6 When the Strategic-Management Process Fails: Not Having an Ecosystem, or "Wide-Lens" Perspective

Some recent headlines from Insurance Journal, which covers news important to the insurance industry: SEA LEVEL RISE WILL BE WORSE AND COME SOONER THE NATURE CONSERVANCY LOOKS TO ADDRESS SOUTH FLORIDA CLIMATE, CATASTROPHE RISKS STUDY: FLOOD RISK ON RISE FOR NEW YORK CITY, NEW JERSEY COAST RESEARCH SAYS WASHINGTON, D.C. IS SLOWLY SINKING INTO THE OCEAN IN CONNECTICUT, SEA LEVEL PREDICTIONS PROMPT NEW AWARENESS IN COMMUNITIES "From Hurricane Sandy's devastating blow to the Northeast to the protracted drought that hit the Midwest Corn Belt," pointed out economics writer Eduardo Porter, "natural catastrophes pounded insurers [in 2012], generating $35 billion in privately insured property damage, $11 billion more than the average over the last decade."73 Indeed, in terms of insured losses, 8 of the 10 costliest hurricanes in U.S. history and 9 of the costliest floods have occurred since 2000.74 Now insurers have to prepare for even worse news. "As each decade passes," writes William Gail, founder of the Global Weather Corporation, "knowledge of Earth's past becomes progressively less effective as a guide to the future. ... Cycles that have been largely unwavering during modern human history are disrupted by substantial changes in temperature and precipitation."75 How can predictions be made if, as the Earth warms, nature's patterns will no longer be reliable? Warming Seas, Rising Seas. China Ocean Shipping Co. actually sees opportunities in rising ocean temperatures: It has introduced regular Asia-to-Europe sailings through the Arctic in the summer through fall, shaving travel time by two weeks compared to going through the Suez Canal, because melting ice has made the route more viable.76 But recent studies find that global temperature rise is increasing with each passing decade, and the corresponding sea rise is the fastest in 28 centuries, producing floods along many coasts and threatening many coastal cities by 2100.77 Several government agencies, such as the U.S. Navy, have launched contingency planning to prepare for the effects of rising seas, and some governments of coastal cities are trying to make plans to anticipate the effect of rising oceans on their infrastructures.78 Miami Beach, Florida, for instance, has already spent something like a hundred million dollars to cope with recurrent flooding and plans to spend several hundred million more.79 The Effect on Insurance Companies. A 2013 report by Ceres, a Boston-based nonprofit promoting eco-minded business practices, said most U.S. insurance companies, large and small, had not adopted comprehensive strategies to cope with climate change.80 "Of 184 companies surveyed," said one account, "only 23 had such strategies, and 13 of those were foreign-owned."81 However, research by a scientist at the federally funded Lawrence Berkeley National Laboratory, which studied large global insurers, said the industry was stepping up to the challenge, having made 1,148 efforts to adapt and mitigate climate change.82 In particular, the insurance industry has enthusiastically embraced risk modeling, allowing flooding and other phenomena linked to global warming to be examined in greater detail. "Risk modeling has become more comprehensive and refined," said an executive with a German insurance company. "With each extreme weather event, we gather additional data and test how well the models perform."83 Contingency planning in action. YOUR CALL Based on contingency planning for climate variability and volatility in every part of the globe, what is the responsibility of insurance companies? Just try to avoid catastrophic losses by raising premiums, adding exclusions, and refusing to cover high-risk communities? Or try to educate consumers about building more resilient structures in less risky areas, particularly those exposed to rising oceans?

Example Ch 6 Contingency Planning for Insurance Companies: Dealing with Rising Sea Levels

The founder of Domino's Pizza, Tom Monaghan, grew the business, which he later sold for $1 billion, by using performance management, as follows:156 1. Define Performance. In order to meet Domino's promise of delivering customers a pizza within 30 minutes or no payment required, Monaghan made clear to his employees in his performance expectations the importance of speed, even showing employees how to run out the door. 2. Monitor and Evaluate Performance. Domino's employees filled out a form showing they understood what was expected of them; then every one of them met with their manager and listed goals for the month and action plans for achieving them. Employees also described what the manager was supposed to do for them to support their efforts. 3. Review Performance. Employees met with their managers every three months to review their performance, and managers met with their own superiors once a month to do the same. 4. Provide Consequences. Monaghan is a big believer in rewarding performance and retaining talent. Thus, Domino's store managers received not only salaries but also 30% of profits. To retain talent, Monaghan rewarded franchisees (individual store owners who had purchased the right to use the Domino's trademark and business model) by encouraging them to develop their managers into store owners themselves, for which the original franchisees were rewarded with a percentage of the earnings from the new store. YOUR CALL In your current job—being a student—how effective do you think the Domino's approach to performance management could be in helping you excel at college? Whom would you designate as your "manager," how often would you meet, and what kind of goals and action plans would you set?

Example Ch 9 Performance Management: How Domino's Pizza Built a Billion-Dollar Business

How do you train workers who are constantly distracted by smartphones, social media, and on-demand entertainment? For some companies, writes former Wall Street Journal reporter Lora Kolodny, "the answer is short digital learning sessions that are available at employees' convenience."147 This kind of on-demand, bite-size learning—short lessons transmitted via microlearning apps and websites—has become a principal method of training now that the average attention span in North America has dropped from 12 seconds in 2000 to 8 seconds in 2015. Microlearning is one form of technology-enhanced learning, also known as online or e-learning. The Surge in E-Learning. E-learning has also become a well-established fact in company training. According to a 2015 survey, although instructor-led classrooms were still the dominant training method, at about 46% of total student hours, 26.5% of training was delivered by online or computer-based technologies, 1.8% by mobile devices, and 31.9% by blended techniques.148 The benefits of e-learning in general and microlearning in particular are that no transportation is needed and you can follow a flexible schedule and often work at your own pace. Possible Drawbacks. However, microlearning has some drawbacks. "Micro-learning is not useful when people need to acquire/learn complex skills, processes, or behaviors," says one critic. Imagine, she says, learning a musical instrument, project management, sales, teamwork management, or any software tool in only 4.5 minutes a day.149 Microlearning, she believes, is probably best used for reinforcement rather than for skill building. Stanford University neuroscientist Priya Rajasethupathy also agrees that microlearning is effective but limited, with bite-size lessons not likely to carry emotional weight—an important component of learning—for students compared to practicing something learned in a workshop or classroom. YOUR CALL Neuroscientists are finding out that the human brain is a "social animal" that needs interaction with others.151 How do you think this fact relates to e-learning? Do you think you learn better in a classroom rather than online?

Example Ch 9 Technology-Enhanced Learning: Getting Ahead through Microlearning

Since launching Amazon in 1995, founder and CEO Jeff Bezos has been "obsessed," in his words, with what he calls "the customer experience." Customers "care about having the lowest prices, having vast selection, so they have choice, and getting the products ... fast," Bezos has said. "And the reason I'm so obsessed with these drivers of the customer experience is that I believe that the success we have had over the past ... years has been driven exclusively by that customer experience." "Simple Is Not Easy." Amazon has led the "Hall of Fame" of one online national survey of customer satisfaction six years in a row. The reason? "Amazon has always been very good at being simple, and simple is not easy," says a consultant. Because of the company's user-friendly website, low prices, one-click shopping, free-shipping options, no-hassle returns policy, and possibly even the sense of community it fosters, the company served 244 million active users in 2014 who bought 2 billion products. A recent innovation in customer satisfaction is Amazon's anticipatory shipping feature, which is designed to use a customer's order history to predict what he or she will need and then ship the goods to nearby warehouses even before the customer purchases them. Detractors. Not every stakeholder finds Amazon so congenial. States have objected to its hardball policies on avoiding taxes on Internet sales. (Thirteen states, including Alabama, South Dakota, and Utah, have grown tired of waiting for Congress to let them tax out-of-state retailers, so they are moving to impose taxes themselves.) Suppliers grumble about being squeezed. Walk-in retailers have worried as shoppers have deserted them en masse for Amazon e-commerce. Book publishers and sellers have seethed over loss of readers to online order systems and Kindle e-books. And Amazon's own employees have complained about severe workplace rules in the company's 115 distribution centers. For most customers, however, none of this other stuff matters, and Amazon's famed customer service helped the company grow to $107 billion in revenues in 2015. YOUR CALL Does it matter to you how harshly a company treats other stakeholders so long as it handles its customer relations well? To what extent are Amazon's policies consistent with the triple bottom line?

Example ch. 3.3: Amazon's Jeff Bezos Obsesses about a Great Customer Experience, but Is It at the Expense of Other Stakeholders' Well-Being?

"The NFL and the owners of its 32 teams are unfamiliar with the concept of reasonableness," editorialized the San Francisco Chronicle. "Their audacity is boundless." The editors were upset because the National Football League had been approached by two cities, St. Louis and San Diego, with plans to apply generous public subsidies to keep their two NFL teams, the Rams and the Chargers, in town. But the NFL turned them down because the owners felt the proposed offers—each expected to exceed $1 billion—weren't good enough. And so the Rams, at least, were being allowed to leave, to move to a $3 billion stadium to be built near Los Angeles. St. Louis lost its NFL team for the second time in 29 years. (The Chargers, and also the Oakland Raiders, were expected to move later.) What is the loss to St. Louis taxpayers? Publicly subsidized stadiums are built on the promise that they will generate economic development. But study after study, the Chronicle pointed out, show such initiatives provide little if any net gain to the public treasury. The Raiders, for instance, have not provided the economic boost that was predicted when the team relocated back to Oakland from Los Angeles following the 1994 season. Public Incentives to Private Business. Professional sports teams aren't the only beneficiaries of government incentives, which may come in the form of cash grants and loans, sales tax breaks, income tax credits and exemptions, free services, and property tax abatements. So are film productions, for example. Film companies in California are wooed by tax incentives offered by states such as Georgia, Louisiana, Nevada, New Mexico, New York, Oregon, and Texas, all seeking the supposed economic benefits movie companies bring, such as purchasing supplies from local businesses. Buffalo, New York, offers $5 million in rewards to retain local entrepreneurs and attract new ones. San Francisco has given tech companies Twitter, Microsoft, Zendesk, Zoosk, and Spotify tax breaks for locating in seedy areas in need of revival. In Arizona, the town of Mesa "offered tax breaks, built power lines, fast-tracked building permits, and got the state to declare a vacant 1.3 million-square-foot plant a foreign trade zone," says one account, to lure Apple Inc. to build a factory employing 700 people.53 Officials in Massachusetts offered incentives worth up to $145 million to General Electric to lure the conglomerate's headquarters and about 800 jobs from leafy Fairfield, Connecticut, where it had been based since 1974, to the Boston waterfront.54 "Help Us Help You." Such government inducements are extraordinarily commonplace—but often to the financial detriment of the local community. "A portrait arises," The New York Times wrote, "of mayors and governors who are desperate to create jobs, outmatched by multinational corporations, and short on tools to fact-check what companies tell them. Many of the officials said they feared that companies would move jobs overseas if they did not get subsidies in the United States."55 Although most incentive funds are directed toward manufacturing, followed by agriculture, the oil, gas, and mining sectors are in third place, the film business fourth, and technology companies not far behind. Community stakeholder. Officials in Massachusetts offered incentives worth up to $145 million to General Electric to move from Fairfield, Connecticut (shown here), to the Boston waterfront. Lower corporate taxes and an urban environment attractive to the most promising and talented employees figured in the company's 2016 decision. Several other states (including Connecticut, Georgia, New York, Rhode Island, and Texas) had competed vigorously for GE. In 10 years, do you think this will prove to have been a wise decision for Massachusetts? Or should the $145 million have been given to struggling entrepreneurs or to provide teacher raises? YOUR CALL How would you advise local public officials to handle the whole matter of tax incentives for business—especially if they are across the table from the shrewd negotiators representing a huge company such as Apple or General Electric? What obligations should a community expect of the companies located there?

Example. Ch 3.3: Local Communities as Stakeholders: Are Financial Incentives to Sports Teams and Other Business Really Necessary?

In September 2010, a buried Pacific Gas & Electric natural-gas pipeline in the San Francisco-area suburb of San Bruno blew up in a spectacular pillar of fire, killing 8 people, badly injuring 58 others, and destroying or severely damaging 55 houses. "The gas-fed flames burned for more than 90 minutes while PG&E scrambled to find a way to shut off the line," reported the San Francisco Chronicle. To Whom Should a Company Be Responsible? It turned out that PG&E had relied on gas-leak surveys to determine whether transmission pipelines were safe, but the company's incentive system awarded bonuses to supervisors whose crews found fewer leaks and kept repair costs down. Indeed, the company's own internal audit found the incentives actually encouraged crews to produce inaccurate surveys. An independent audit found that over an 11-year period PG&E collected $430 million more from its gas operations than the government had authorized—and it "chose to use the surplus revenues for general corporate purposes" rather than for improved safety, according to an auditor. In fact, in the three years prior to the explosion, the company spent $56 million a year on an incentive plan—stock awards, performance shares, and deferred compensation—for its executives and directors, including millions to the CEO. The utility was ordered to pay a record $1.6 billion in state penalties and other costs and settled 165 lawsuits with residents' and victims' families for $565 million. It was also indicted on 12 criminal counts, for repeatedly violating the federal Pipeline Safety Act. Later prosecutors decided to seek a criminal obstruction-of-justice case against the company after an investigator complained that PG&E employees were "giggling, laughing and were sarcastic" during interviews he conducted. Subsequent reports found a company history of sloppy maps and inaccurate record keeping, which was blamed for a later gas line explosion in another city. YOUR CALL Is a company principally responsible only to its stockholders and executives? Or are other groups equal in significance? Further, is it sufficient that a company simply be legal, as PG&E believes it was? Or, isn't it equally important that it be ethical as well?

Example: Ch. 3.2. Who Should Be a Company's Most Important Stakeholders? Natural Gas Utility PG&E Pays a Huge Price

are commercial banks, investment banks, and insurance companies that deal with the organization.

Financial institutions

It can reduce costs, as by freezing hiring or tightening expenses. It can sell off (liquidate) assets—land, buildings, inventories, and the like. It can gradually phase out product lines or services. It can divest part of its business, as in selling off entire divisions or subsidiaries. It can declare bankruptcy. It can attempt a turnaround—do some retrenching, with a view toward restoring profitability.

Implementing Defensive strategy

It can improve an existing product or service to attract more buyers. It can increase its promotion and marketing efforts to try to expand its market share. It can expand its operations, as in taking over distribution or manufacturing previously handled by someone else. It can expand into new products or services. It can acquire similar or complementary businesses. It can merge with another company to form a larger company.

Implementing growth strategy

It can go for a no-change strategy (if, for example, it has found that too-fast growth leads to foul-ups with orders and customer complaints). It can go for a little-change strategy (if, for example, the company has been growing at breakneck speed and feels it needs a period of consolidation).

Implementing stability strategy

in fast-growing markets in which they have a high market share rather than slow-growing markets in which they have low market shares.

In general, organizations do better

commissions, bonuses, profit-sharing plans, and stock options.

Incentives include

acts and are often numerical. An example is management by objectives.

Objective appraisals are based on

sustainability

One type of social responsibility is

the social responsibility of business is to make profits.

Opposing viewpoint of social responsibility

-Decentralized hierarchy of authority -Few rules and procedures -Shared tasks -informal communication -many teams or task forces -wider span of control, flatter structures

Organic Organizations

is defined as the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments.

Organizational culture

is concerned with designing the optimal structures of accountability and responsibility that an organization uses to execute its strategies.

Organizational design

environmental factors that the organization may exploit for competitive advantage.

Organizational opportunities

the process by which people learn the values, norms, and required behaviors that permit them to participate as members of an organization.

Organizational socialization

the skills and capabilities that give the organization special competencies and competitive advantages.

Organizational strengths

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

Organizational structure

environmental factors that hinder an organization's achieving a competitive advantage.

Organizational threats

the drawbacks that hinder an organization in executing strategies.

Organizational weaknesses

(1) simple structure (2) In a functional structure (3) In a divisional structure (4) matrix structure (5) In a horizontal design or team-based design. (6) boundary-less (7) centralization versus decentralization of authority.

Organizations may be arranged into seven types of structures:

helping the newcomer fit smoothly into the job and organization

Orientation consists of

consists of assessing an employee's performance and providing him or her with feedback.

Performance appraisal

1) Formal appraisals (2) Informal appraisals

Performance feedback can be effected in two ways

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

Performance management

reflects the extent to which your personality and values match the climate and culture in an organization.

Person-Organization Fit

Although corporations and managements may make noises about training and support, newly promoted managers may not see any of this and may simply be expected to know what to do. And as managers move up the ladder, they may encounter other problems that they have not anticipated. How can you avoid some pitfalls as you make your ascent? In general, says one business professor, it begins by understanding "the culture you're in and what your organization's key values are." You have to learn how to read the culture, and you have to learn how to build strong relationships. Some suggestions follow. Have Realistic Expectations and Think about the Kind of Manager You Want to Be. New managers often focus on the rights and privileges of their new jobs and underestimate the duties and obligations. Make a list of all your previous bosses and their good and bad attributes. This may produce a list of dos and don'ts that can serve you well. Don't Forget to Manage Upward and Sideways as Well as Downward. You need to manage not only your subordinates but also the perceptions of your peers and your own managers above you. In addition, you need to have good relationships with managers in other departments—and be perceptive about their needs and priorities—since they have resources you need to get your job done. One expert on building relationship networks suggests you ask four key questions: (1) Whose cooperation do I need? (2) Whose compliance do I need? (3) Whose opposition would keep me from accomplishing my work? (4) Who needs my cooperation and compliance? Work on identifying what you have in common with the other person, and invest time in nurturing and maintaining the relationship. Get Guidance from Other Managers. You may not get advice on how to manage from your own manager, who may have promoted you to help reduce his or her workload, not add to it by expecting some coaching. If this is the case, don't be shy about consulting other managers as well as people in professional organizations. "Keep listening to and for advice," says one former Major League Baseball commissioner. "Never complain; never explain. No one listens. Take the blame if something goes wrong."86 Resist Isolation. If you're promoted beyond supervisor of a small team and you have to manage hundreds rather than dozens, or thousands rather than hundreds, you may find the biggest surprise is isolation. The way to stay in touch is to talk daily with your senior managers, perhaps have "town meetings" with staffers several times a year, and use "management by wandering around"—bringing teams together to talk. YOUR CALL How would you try to manage the perceptions not only of subordinates but of your peers?

Practical Action Ch 8 Reading the Culture: Avoiding Pitfalls on Your Way Up

All managers must learn how to delegate—to assign management authority and responsibilities to people lower in the company hierarchy. When it comes to a choice between micromanaging and delegating tasks, "err on the side of delegation," former GE head Jack Welch has recommended. "It makes your employees love being at the company and helps them flourish. And it gives managers a feel for who needs more attention."93 Delegation also helps you avoid exhaustion from overwork. "To do more in a day, you must do less—not do everything faster," says Oakland, California, productivity expert Odette Pollar.94 If as a manager you find yourself often behind, always taking work home, doing your subordinates' work for them, and constantly having employees seeking your approval before they can act, you're clearly not delegating well. How do you decide when to delegate and when not to? Here are some guidelines:95 Delegate Routine and Technical Matters. Always try to delegate routine tasks and routine paperwork. When there are technical matters, let the experts handle them. Delegate Tasks That Help Your Subordinates Grow. Let your employees solve their own problems whenever possible. Let them try new things so they will grow in their jobs. Don't Delegate Confidential and Personnel Matters. Any tasks that are confidential or that involve the evaluation, discipline, or counseling of subordinates should never be handed off to someone else. Don't Delegate Emergencies. By definition, an emergency is a crisis for which there is little time for solution, and you should handle this yourself. Don't Delegate Special Tasks That Your Boss Asked You to Do—Unless You Have His or Her Permission. If your supervisor entrusts you with a special assignment, such as attending a particular meeting, don't delegate it unless you have permission to do so. Match the Tasks Delegated to Your Subordinates' Skills and Abilities. While recognizing that delegation involves some risk, make your assignments appropriate to the training, talent, skills, and motivation of your employees. YOUR CALL Managers fail to delegate for many reasons.96 An excessive need for perfection. A belief that only they should handle "special," "difficult," or "unusual" problems or clients. A wish to keep the parts of a job that are fun. A fear that others will think them lazy. A reluctance to let employees lower down in the hierarchy take risks. A worry that subordinates won't deliver. A concern that the subordinates will do a better job and show them up. Are any of these why you might not be very good at delegating? What are some others?

Practical Action Ch 8 When Should You Delegate and When Not? How Managers Get More Done

Because hiring people who later have to be let go is such an expensive proposition, companies are now putting a great deal of emphasis on effective interviewing. The previous Practical Action box provided a few tips for job applicants, but here let us explain how the interview process is being conducted from the interviewer's point of view.103 Page 290 Before the Interview: employers define their needs and review applicants' resumes. It's been said that looking to hire somebody is like going to the supermarket; the employer needs to have a list and know what he or she needs. Thus, the HR department will write out (or be told) what skills, traits, and qualities the job requires that the company is trying to fill. The interviewer will also look at the applicant's resume or application form to determine relevant experience, gaps, and discrepancies. The interviewer prepares the questions to be asked. The interviewer should use a structured approach that asks all candidates the same set of questions, so that their answers can be compared. (This helps keep the company out of legal trouble, too, as in being accused of racial or gender bias.) In general, the questions should be designed to elicit the following types of information. What drawbacks does the applicant's previous work experience show? Examples: "Why are you leaving your current job, or why are you currently unemployed?" Does the applicant have the knowledge to do the job? Examples: "Give an example where you came up with a creative solution." "How would you distinguish our product from competitors'?" Can the applicant handle difficult situations? Examples: "What is your greatest weakness?" "Tell me about a time when you dealt with an irate customer. How did you handle the situation and what was the outcome?" Is the applicant willing to cope with the job's demands? Examples: "How do you feel about making unpopular decisions?" "Are you willing to travel 30% of the time?" Will the applicant fit in with the organization's culture? Examples: "Where do you see yourself in five years?" "How would your last supervisor describe you?" "How much leeway did they give you in your previous job in charging travel expenses?" Interviewers Often Follow a Three-Scene Interview Scenario. The interview itself may follow a three-scene script. Scene 1: The first three minutes—small talk and "compatibility" test. The first scene is really a "compatibility test." It takes about three minutes and consists of exchanging small talk, giving the interviewer a chance to establish rapport and judge how well the candidate makes a first impression. Note: As many as four out of five hiring decisions are made within the first 10 minutes of an interview, according to some research. Thus, be aware that if you, the job applicant, have immediately impressed the interviewer, he or she may spend more time talking than listening—perhaps even trying to sell you on the job rather than screen your qualifications.104 Scene 2: The next 15-60 minutes—asking questions and listening to the applicant's "story." In the next scene, the interviewer will ask you the questions he or she previously wrote out (and answer those that you have). A good interviewer will allow you, the interviewee, to do 70%-80% of the talking, and he or she will take notes to remember important points. Be aware that the interviewer's intuition can play a strong role in the hiring decision. Scene 3: The final two minutes—closing the interview and setting up the next steps. In the final minutes, the interviewer will listen to determine whether the candidate expresses interest in taking the job. After the Interview. After you have left, the interviewer will probably write a short report making some sort of quantitative score of your qualifications and indicating reasons for the decision. If he or she decides to invite you back for a second interview (or pass you along to another interviewer), your references will also be checked. YOUR CALL What additional questions would you like to be asked that would showcase you as the best candidate? How would you work what you want to say into the interview?

Practical Action Ch 9 The Right Way to Handle an Interview: What the Employer Is looking For

What kind of lies do people put on their resumes? Consider the following examples. Lying about Education. Lying about education may be the most prevalent distortion (such as pretending to hold a degree or an advanced degree).62 A few years ago, RadioShack CEO David Edmondson achieved some notoriety and had to resign after a newspaper discovered he had falsely claimed on his resume to hold degrees in psychology and theology.63 In 2012, Yahoo CEO Scott Thompson was revealed to not have earned a college degree in computer science, as claimed on his resume and on the company's website.64 Automatic Data Processing of Roseland, New Jersey, which has studied employee background verification, reported that 41% of education records showed a difference between the information provided by an applicant and that provided by the educational institution.65 Lying about Employment Histories, Ages, Salaries, and Job Titles. Another common fabrication includes creative attempts to cover gaps in employment history (although there are straightforward ways an applicant can deal with this, such as highlighting length of service instead of employment dates).66 Some people try to cover up taking years off from work to do child care, but it is better to explain than to hide these dates.67 People also lie about their ages for fear of seeming to be too experienced (hence expensive) or too old.68 As you might expect, people also embellish their salary histories, job titles, and achievements on projects. Lying about Criminal Background or Immigration Status. In 2007, it came out that the foundation that runs online encyclopedia Wikipedia had neglected to do a basic background check before hiring Carolyn Doran as its chief operating officer; she had been convicted of drunken driving and fleeing the scene of a car accident.69 Now, more and more job seekers are seeking to legally clear their criminal records—to have their arrests or convictions expunged, when possible.70 Public efforts are also being made to remove hiring hurdles faced by felons trying to restart their lives, such as the National Reentry Resource Center.71 In addition, as the number of illegal (undocumented) workers has risen, it has become incumbent on human resource officers to verify U.S. citizenship.72 Use of E-Verify, the federal program that allows employers to quickly check the legal status of potential employees, has taken a big jump.73 Still, perhaps half of illegal workers slip by the system.74 YOUR CALL What past events are you most worried potential employers will find out about you? What can you do to put them in a better light?

Practical Action Ch. 9 Would You Lie Like This on Your Resume?

Incentive compensation plans, ranging from cash awards and gifts to profit sharing and stock ownership, are intended to recruit top performers and to spur their best efforts once they are hired. Despite the huge investments of time and money, such incentives do not achieve their desired results. Here are eight possible reasons:132 "I don't work just for the money." Sometimes there is too much emphasis on monetary rewards. "They don't care what I do." There may be the absence of an "appreciation effect." "It's no more than what I deserve." The benefits may be extensive, but employees feel they are entitled to them just as part of the job. "Let's see how little work we can get away with." The rewards may have the unintended consequence of producing nonproductive, even counterproductive, work behavior. (Example: Albuquerque, New Mexico, city officials decided to pay trash truck crews for eight hours regardless of time spent, so as to encourage quick completion of the work and lower overtime costs. However, the policy only led crews to work fast and cut corners, missing pickups, speeding and causing accidents, and generating extra dump fees for overloading vehicles.)133 "Why bother? It takes forever to get paid." There is too long a delay between performance and rewards. "Another $25 gift card? Who needs it?" There are too many one-size-fits-all rewards. "A half day off on Friday—so what." Managers use one-shot rewards with a short-lived motivational impact. "There they go again. ..." Management continues to use demotivating practices such as layoffs, across-the-board pay cuts, and excessive compensation for executives but not workers.134 Five keys to a successful incentive-pay plan are the following:135 Simplicity. Does the plan pass the simplicity test? Can you explain it on an elevator ride? Clear goals. Are the goals clear? Are the goals fully supported by management? Realistic goals. Are the goals realistic—that is, neither too difficult nor too easy to achieve? Consistency with present goals. Is the plan in line with the organization's present goals? Company goals change. Few organizations have the same business objective for more than five to seven years. Regular communication. Do managers regularly communicate with employees about the plan? People want a scorecard.

Practical Action ch 9 Why Rewards May Fail to Motivate

There are several mistakes that job candidates often make in initial interviews. Here are some tips.84 Be Prepared—Very Prepared. Can you pronounce the name of the company with whom you're interviewing? Of the person or people interviewing you? Do you understand the company and the position you're interviewing for? Do you know the company's competition? What new products or services are being offered? How about your reasons for leaving your present employer (or why you're now unemployed)? What are your greatest strengths? Your weaknesses? What do you need to improve on to move ahead? Where do you want to be in five years, careerwise? Go online and read the company's website. Search for any news articles written about the firm. Call the company and ask about pronunciation. Determine how your strengths fit directly into the context of what the prospective employer does. Also, when asked about your weaknesses, state how you recognized a weakness, overcame a dilemma, and were improved by it. Take time to practice questions and answers, so you'll sound confident.85 Dress Right and Pay Attention to Your Attitude. Is the company dress code "business casual"? That doesn't mean you should dress that way (or the way you dress on campus) for the interview. Dress professionally for the interview. Be aware of your attitude as soon as you enter the building. Be on time. (Time your commute by doing a test run a day or so before the interview, and make sure you know the exact location of the interview.) If unforeseeable circumstances arise and cause you to be late, call to inform your interviewer. Be polite to the receptionist, and greet everyone who greets you. Turn off your cell-phone ringer. Don't Get Too Personal with the Interviewer. Don't be overfriendly and share too much, especially in the initial interview. Although the interviewer will try to make you feel comfortable, you should focus on the position. Rehearse questions to ask the interviewer, such as the challenges for the position in the future. Don't make negative comments about your old company or boss. Rather, figure out the positives and convey what you learned and gained from your experience. If asked an inappropriate question (about age, marital status, whether you have children or plan to), politely state you don't believe the question is relevant to your qualifications. Be enthusiastic; enthusiasm is contagious. Incidentally, be sure to mention any organizational citizenship behavior, which scores well with interviewers.86 After the interview, within 24 hours, send an e-mail (with no misspellings or faulty grammar) thanking the interviewer. If you think you messed up part of the interview, use the e-mail to smooth over your mistakes.87 Be Aware That Your Background and Social Networks Will Be Checked. Because it seems to be getting harder to distinguish honest job applicants from dishonest ones, companies now routinely check resumes or hire companies that do so.88 Most employers conduct background checks—in fact, two-thirds conduct criminal background checks, according to one study.89 Some may also ask for your SAT scores.90 Some have been known to scrutinize checking accounts.91 As mentioned earlier, if you are a Facebook, YouTube, or Twitter user, be aware that employers now frequently use search engines to do continuous and stealthy background checks on prospective employees to see if they've posted any racy content. "Many job hunters," says one report, "are ... continuing to overlook the dangers of posting provocative photos and other dubious content on social-media sites."92 Checking your Facebook page is also a way employers can make an end run around discrimination laws.93 Indeed, you may be asked in the interview for your Facebook user name and password so the interviewer can access your private settings—a practice whose legality is questionable but nevertheless being done by more companies.94Page 289 (More and more people are getting savvy about privacy and pruning their friend lists and removing unwanted comments on their social networks.)95 Some companies are slashing the time it takes to get new workers, as by skipping reference checks (which can lead to costly mistakes).96 Most of the time, however, the process of getting hired seems to be taking longer than ever—the average is about 23 days, though it can be as long as 6-12 months—but while you're waiting for the company's decision you should avoid the temptation of telephoning and demanding to know your status.97 YOUR CALL What kind of advice do you see here that you wish you'd followed in the past?

Practical action Ch 9 Applying for a Job? Here Are Some Mistakes to Avoid

"Employment at will" is the governing principle of employment in the great majority of states, which means that anyone can be dismissed at any time for any reason at all—or for no reason. Exceptions are whistle-blowers and people with employment contracts. Civil-rights laws also prohibit organizations' dismissing people for their gender, skin color, or physical or mental disability.189 Four suggestions for handling a dismissal follow. Give the Employee a Chance First. If you're dealing with someone who has a problem with absenteeism, alcohol/drug dependency, or the like, articulate to that employee what's wrong with his or her performance; then set up a plan for improvement (which might include counseling). Or if you're dealing with an employee who has a bad cultural or personality fit with the company—a buttoned-down, by-the-book style, say, that's at odds with your flexible, fast-moving organization—have a conversation and give the employee time to find a job elsewhere.190 Don't Delay the Dismissal, and Make Sure It's Completely Defensible. If improvements aren't forthcoming, don't carry the employee along because you feel sorry for him or her. Your first duty is to the performance of the organization. Make sure, however, that you've documented all the steps taken in advance of the dismissal. Also be sure that the steps taken follow the law and all important organizational policies.191 Be Aware How Devastating a Dismissal Can Be—Both to the Individual and to Those Remaining. To the personPage 307 being let go, the event can be as much of a blow as a divorce or a death in the family. Dismissals can also adversely affect those remaining with the company. This is what psychiatrist Manfred Kets de Vries calls layoff survivor sickness, which is characterized by anger, depression, fear, guilt, risk aversion, distrust, vulnerability, powerlessness, and loss of motivation. Indeed, a five-year study by Cigna and the American Management Association found an enormous increase in medical claims, particularly for stress-related illnesses, not only among those dismissed but among continuing employees as well.192 Offer Assistance in Finding Another Job. Dismissing a long-standing employee with only a few weeks of severance pay hurts not only the person let go but also the organization itself, as word gets back to the employees who remain, as well as to outsiders who might be prospective employees. Knowledgeable employers offer assistance in finding another job. "The best demonstration that a company's values are real," says management scholar Rosabeth Moss Kanter, "is to act on them today even for people who will not be around tomorrow. A company, like a society, can be judged by how it treats its most vulnerable. ... Bad treatment of departing employees can destroy the commitment of those who stay."193 On this score, current thinking is that the best day to lay people off is not Friday (the traditional day, when often managers didn't want to deal with other employees' reactions) and not Monday (when leaders may not have time to prepare for the aftermath) but rather the middle of the week, which gives former employees a chance to look for work before the week is over.194 Getting Yourself Back Together after a Job Loss. "Losing a job can be a blow to your confidence and pride," says writer Debra Auerbach. But you can put yourself back on your feet more quickly, she suggests, if you take the following steps: Take time to grieve, as in taking a week to process what happened—but don't take much longer than that. Assess your finances, accept any assistance or outplacement counseling from your previous employer, set a daily schedule that keeps you from feeling adrift, start networking by getting referrals from former clients or vendors, add to your skills, and find a support group that will "cheer you through each [new job] possibility and lament each dead end."

Practical action Ch 9 The Right Way to Handle a Dismissal

gaining information about one's competitors' activities, through public news sources, investor information, and informal sources, so that you can anticipate their moves and react appropriately.

Practicing competitive intelligence

a manager must become knowledgeable about the staffing an organization might need and the likely sources of staffing, perhaps using a human resource inventory to organize this information.

Predicting employee needs

-Don't suggest sexual favors for rewards related to work or promotion. -Don't do uninvited touching, patting, or hugging of others' bodies—especially if they wince, frown, or pull away. -Don't make sexually suggestive jokes, demeaning remarks, slurs, or obscene gestures or sounds. -Don't display sexual pictures in your workplace or write notes of a sexual nature. -Don't laugh at others' sexually harassing words or behaviors.

Preventing Sexual Harassment

group activities around similar products or services

Product divisions

Sarbanes-Oxley Act of 2002

Public outrage over white-collar crime (Enron, Tyco) led to the creation of

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

Recruiting

a search for the Strengths, Weaknesses, Opportunities, and Threats affecting the organization.

SWOT analysis

are new developments in methods for transforming resources into goods and services.

Technological forces

strategy, strategic management, and strategic planning.

The "big picture" of an organization should involve

- In a divisional structure, people with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions

The Divisional Structure: Grouping by Similarity of Purpose

-In a functional structure, people with similar occupational specialties are put together in formal groups. -This is a quite commonplace structure, seen in all kinds of organizations, for-profit and nonprofit.

The Functional Structure: Grouping by Similar Work Specialties

-hollow structure, often called the network structure, the organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster. - A company with a hollow structure might retain such important core processes as design or marketing and outsource most other processes, such as human resources, warehousing, or distribution, thereby seeming to "hollow out" the organization

The Hollow Structure: Operating with a Central Core and Outsourcing Functions to Outside Vendors

-In a horizontal design, also called a team-based design, teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal boundaries.

The Horizontal Design: Eliminating Functional Barriers to Solve Problems

-In a matrix structure, an organization combines functional and divisional chains of command in a grid so that there are two command structures—vertical and horizontal. -The functional structure usually doesn't change—it is the organization's normal departments or divisions, such as Finance, Marketing, Production, and Research & Development. The divisional structure may vary—as by product, brand, customer, or geographic region.

The Matrix Structure: A Grid of Functional and Divisional for Two Chains of Command

-differs from the hollow structure in that it is oriented around outsourcing certain pieces of a product rather than outsourcing certain processes (such as human resources or warehousing) of an organization - In a modular structure, a firm assembles product chunks, or modules, provided by outside contractors.

The Modular Structure: Outsourcing Pieces of a Product to Outside Firms

-An organization with a simple structure has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization. -This is the form often found in a firm's very early, entrepreneurial stages, when the organization is apt to reflect the desires and personality of the owner or founder.

The Simple Structure: For the Small Firm

-virtual structure, an organization whose members are geographically apart, usually working with e-mail, and other forms of information technology yet which generally appears to customers as a single, unified organization with a real physical location.

The Virtual Structure: An Internet-Connected Partner for a Temporary Project

organizational culture and organizational structure.

The challenge for top managers is to align the organization's vision and strategies with its

keep the costs and hence prices of a product or service below those of competitors and to target a narrow market.

The cost-focus strategy.

keep the costs, and hence the prices, of a product or service below those of competitors and to target a wide market.

The cost-leadership strategy

offer products or services that are of unique and superior value compared with those of competitors but to target a wide market

The differentiation strategy

Step 1 is to establish the mission, vision, and values statements. Step 2 is to do a current reality assessment Step 3 is strategy formulation, Step 4 is strategy implementation Step 5 is strategic control -Corrective action constitutes a feedback loop

The strategic-management process has five steps plus a feedback loop.

Corrective action constitutes a feedback loop in which a problem requires that managers return to an earlier step to rethink policies, budgets, or personnel arrangements.

The strategic-management process: Feedback loop

.The mission statement expresses the organization's purpose or reason for being. The vision statement states what the organization wants to become, where it wants to go strategically. The values statement describes what the organization stands for, its core priorities, the values its employees embody, and what its products contribute to the world.

The strategic-management process: Step 1-establish the mission, vision, and values statements.

to look at where the organization stands and see what is working and what could be different so as to maximize efficiency and effectiveness in achieving the organization's mission/vision.

The strategic-management process: Step 2- do a current reality assessment

to translate the broad mission and vision statements into a grand strategy that explains how the organization's mission is to be accomplished.

The strategic-management process: Step 3- strategy formulation

putting strategic plans into effect.

The strategic-management process: Step 4- strategy implementation

monitoring the execution of strategy and making adjustments.

The strategic-management process: Step 5- strategic control

involves asking each applicant the same questions and comparing his or her responses to a standardized set of answers

The structured interview involves

consists of 11 groups that present the manager with daily tasks to deal with.

The task environment

asking probing questions to find out what the applicant is like.

The unstructured interview involves

describes what the organization stands for, its core priorities, the values its employees embody, and what its products contribute to the world.

The values statement

states what the organization wants to become, where it wants to go strategically.

The vision statement

for-profit, nonprofit, and mutual-benefit.

There are three types of organizations classified according to the three different purposes for which they are formed

narrow (or tall) and wide (or flat)

There are two kinds of spans of control

Hollow, Modular, and Virtual Structures

Three boundaryless organizational designs

(1) traditional designs, (2) horizontal designs (3) designs that open boundaries between organizations.

Three categories of organizational design

refers to educating technical and operational employees in how to do their current jobs better.

Training

ratings of subjective attributes such as attitude and leadership

Trait appraisals

or moving employees to a different job with similar responsibility, may take place in order to solve organizational problems, broaden managers' experience, retain managers' interest and motivation, and solve some employee problems.

Transfers

an employee abandons, resigns, retires, or is terminated from a job, and the employer seeks to replace him or her.

Turnover occurs when

that they measure results and they are harder to challenge legally.

Two good reasons for having objective appraisals

(1) the vertical hierarchy of authority, who reports to whom, and (2) the horizontal specialization, who specializes in what work.

Two kinds of information that organizations reveal about organizational structure

(1) trend analysis, (2) contingency planning

Two types of forecasting

first doing a job analysis to determine, by observation and analysis, the basic elements of a job. Then a job description can be written, which summarizes what the holder of the job does and how and why he or she does it. Next comes the job specification, which describes the minimum qualifications a person must have to perform the job successfully.

Understanding current employee needs requires

is guided by what will result in the greatest good for the greatest number of people.

Utilitarian—ethical behavior

are the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior.

Values

1. observable artifacts 2. espoused values 3. basic assumptions

What are the three layers of organizational culture?

It helps employees understand why the organization does what it does and how it intends to accomplish its long-term goals.

What does the organizational culture do for employees

-Founder's values -Industry & business environment -National culture -Organization's vision & strategies -Behavior of leaders

What drives organizational culture?

information about the job routine, the organization's mission and operations, and the organization's work rules and employee benefits.

What information would an employee obtain from orientation?

SWOT analysis

What is the process for environmental scanning

fairness, nondiscrimination, and other employees' resentment.

What should a manager be concerned with when considering a promotion?

Employee Referrals

Which External Recruiting Methods Work Best?

-This means a manager has several people reporting to them -An organization is said to be flat when there are only a few levels with wide spans of control.

Wide Span of Control

which involves reduction in the organization's efforts.

a defensive strategy

involving expansion—as in sales revenues or market share; one form of growth strategy is an innovation strategy, growing market share or profits by innovating improvements in products or services;

a growth strategy

used to measure areas of a triple bottom line. It is a systematic assessment of a company's performance in implementing socially responsible programs, often based on predefined goals.

a social audit

which involves little or no significant change

a stability strategy

the type of of organizational culture that has an external focus and values flexibility

adhocracy

which focuses on achieving equality of opportunity within an organization

affirmative action

the type of organizational culture that has a strong external focus and values stability and control

market culture

authority is centralized, tasks and rules are clearly specified, and employees are closely supervised.

mechanistic organization

which is the value of natural resources, such as topsoil, air, water, and genetic diversity, which many scholars think should figure seriously in economic decision making.

natural capital (also known as the planet component of the triple bottom line)

the physical manifestations of culture.

observable artifacts

programs that help employees to integrate and transition to new jobs by making them familiar with corporate policies, procedures, cultures, and politics by clarifying work-role expectations and responsibilities.

onboarding

authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks.

organic organization

the activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization's life.

rites and rituals

(1) common purpose (2) coordinated effort (3) division of labor (4) hierarchy of authority (5) span of control (6) authority and accountability, responsibility, and delegation (7) centralization versus decentralization of authority.

seven elements of an organization

which consists of unwanted sexual attention that creates an adverse work environment and which may be of two types—the quid pro quo and hostile environment type

sexual harassment

- the person to whom the unwanted sexual attention is directed is put in the position of jeopardizing being hired for a job or obtaining job benefits or opportunities unless he or she implicitly or explicitly acquiesces. -which may cause direct economic injury,

sexual harassment: quid pro quo

in which the person being harassed experiences an offensive work environment.

sexual harassment: hostile work environment

making and selling only one product within their market

single-product strategy

the interview focuses on hypothetical situations.

situational interview

the economic or productive potential of strong, trusting, and cooperative relationships

social capital

refers to the number of people reporting directly to a given manager

span of control

-have advisory functions; they provide advice, recommendations, and research to line managers. -represented by dotted line in organization chart

staff managers

the people whose interests are affected by the organization's activities.

stakeholders,

a narrative based on true events, which is repeated—and sometimes embellished on—to emphasize a particular value.

story

"going green," or meeting humanity's needs without harming future generations.

sustainability

an object, an act, a quality, or an event that conveys meaning to others.

symbol