mngt 301 exam 3

Organizational Structure

(1) the set of formal tasks assigned to individuals and departments; (2) formal reporting relationships, including lines of authority, decision responsibility, number of hierarchical levels, and span of managers' control; and (3) the design of systems to ensure effective coordination of employees across departments.Footnote Ensuring coordination across departments is just as critical as defining the departments to begin with. Without effective coordination systems, no structure is complete.

Performance review ranking system

Another alternative performance evaluation method is the performance review ranking system, which is sometimes referred to as a forced ranking system, stack ranking, or "rank and yank."Footnote This method is increasingly controversial because it essentially evaluates employees by pitting them against one another. As most commonly used, these systems rank employees according to their relative performance: 20 percent would be placed in the top group of performers; 70 percent have to be ranked in the middle; and 10 percent are ranked at the bottom. The bottom tier are given a set period of time to improve their performance, and if they don't improve, they are fired.

Centralized and Decentralized

C- decision authority is located near the top of the organization D- decision authority is pushed downward to lower organization levels Centralization means that decision authority is located near the top of the organization. With decentralization, decision authority is pushed downward to lower organization levels. Organizations may have to experiment to find the correct hierarchical level at which to make decisions. For example, most large school systems are highly centralized. However, a study by William Ouchi found that three large urban school systems that shifted to a decentralized structure (giving school principals and teachers more control over staffing, scheduling, and teaching methods and materials) performed better and more efficiently than centralized systems of similar size. Government leaders in Great Britain hope the same thing will happen with decentralization of the country's National Health Service (NHS). The system is undergoing the most radical restructuring since it was founded in 1948, with a key part of the plan to shift control of the annual health care budget to doctors at the local level. Leaders believe decentralization will cut costs, simplify and streamline procedures, and reduce inefficiency by "putting power in the hands of patients and clinicians." •Change and uncertainty in the environment are associated with decentralization •Fit the firm's strategy •Crisis requires centralization

Direct Contact With Customers

Employees and customers interact directly to provide and purchase the service. Production and consumption are simultaneous. Service firm employees have direct contact with customers. In a manufacturing firm, technical employees are separated from customers, and hence no direct interactions occur.

Structure Follows Strategy

External strategic needs, such as environmental conditions, strategic direction, and organizational goals, create top-down pressure for designing the organization in such a way as to fit the environment and accomplish strategic goals. Structural decisions also take into consideration pressures from the bottom up—that is, from the technology and work processes that are performed to produce the organization's products and services.

Big 5 Personality Traits

Extroversion. The degree to which a person is outgoing, sociable, assertive, and comfortable with interpersonal relationships Agreeableness. The degree to which a person is able to get along with others by being good-natured, likable, cooperative, forgiving, understanding, and trusting Conscientiousness. The degree to which a person is focused on a few goals, thus behaving in ways that are responsible, dependable, persistent, and achievement oriented. Emotional stability. The degree to which a person is calm, enthusiastic, and self-confident, rather than tense, depressed, moody, or insecure. Openness to experience. The degree to which a person has a broad range of interests and is imaginative, creative, artistically sensitive, and willing to consider new ideas.

The strategic role of HRM

HR drives organizational performance •Human capital cited as the top factor in competitive success •Talent management is a top concern for all managers

Wage and Salary surveys

HR managers may obtain wage and salary surveys that show what other organizations pay incumbents in jobs that match a sample of "key" jobs selected by the organization. These surveys are available from a number of sources, including the U.S. Bureau of Labor Statistics National Compensation Survey.

Strategic issues for managers

Hiring the right people to become more competitive on a global basis •Hiring the right people for improving quality, innovation, and customer service •Knowing the right people to retain after mergers, acquisitions, or downsizing •Hiring the right people to apply new information technology (IT) for mobile business

Continuous process production.

In continuous process production, the entire workflow is mechanized in a sophisticated and complex form of production technology. Because the process runs continuously, it has no starting and stopping. Human operators are not part of actual production because machinery does all the work. Human operators simply read dials, fix machines that break down, and manage the production process. Examples of continuous process technologies are chemical plants, distilleries, petroleum refineries, and nuclear power plants.

IMPACT OF FEDERAL LEGISLATION ON HRM

Laws ensure equal opportunity, stop discrimination, and define enforcement agencies Failure to comply with EEO legislation can result in substantial fines and penalties for employers •Sexual harassment, a violation of the Civil Rights Act, is a growing concern •Scope of HR legislation is increasing at federal, state, and municipal levels

Social media

Managers do much of their recruiting today via the Internet, including social media sites such as LinkedIn, Facebook, and Twitter

Large-batch and mass production.

Mass production technology is distinguished by standardized production runs. A large volume of products is produced, and all customers receive the same product. Standard products go into inventory for sale as customers need them. This technology makes greater use of machines than does small-batch production. Machines are designed to do most of the physical work, and employees complement the machinery. Examples of mass production are automobile assembly lines and the large-batch techniques used to produce tobacco products and textiles.

Divisional

Most large corporations have separate divisions that perform different tasks, use different technologies, or serve different customers. When a large organization produces products or services for different markets, the divisional structure works because each division is an autonomous business. For example, Walmart uses three major divisions for Wal-Mart Stores, Sam's Club (U.S.), and International Stores. Each of these three large divisions is further subdivided into smaller geographical divisions to better serve customers in different regions.

End of Lifetime Employment

New social contract is based on the concept of employability rather than lifetime employment Individuals are responsible for developing their own skills and abilities and demonstrating their value to the organization. The employer, in turn, invests in creative training and development opportunities so that people will be more employable when the company no longer needs their services. This means offering challenging work assignments, opportunities to participate in decision making, and access to information and resources. In addition, an important challenge for HRM is revising performance evaluation, compensation, and other practices to be compatible with the new social contract. Many organizations, including KPMG International, IBM, Microsoft, and Lockheed Martin, have set up "alumni social networks" so that people who have left the organization can keep in touch with former colleagues and the industry. Employees help the company become more adaptable, while the company helps the employee become more employable

fundamental attribution error

People give in to the internal factors and hate someone for it and don't take up the external factors that got them there. It wasn't their personality it was their experience. People often have biases that they apply when making attributions. When evaluating others, we tend to underestimate the influence of external factors and overestimate the influence of internal factors. When evaluating others, we tend to underestimate the influence of external factors and overestimate the influence of internal factors. This tendency is called the fundamental attribution error. Consider the case of someone being promoted to CEO. Employees, outsiders, and the media generally focus on the characteristics of the person that allowed him or her to achieve the promotion. In reality, however, the selection of that person might have been heavily influenced by external factors, such as business conditions creating a need for someone with a strong financial or marketing background at that particular time.

Process of finding the right people

Predict needs through human resource planning(HR Planning) Retirements, growth, recognition Use recruiting procedures to communicate with potential applicants(Choose Recruiting sources) -want ads, headhunters, internet Select the best candidate -application, interview, test Welcome the new employee

Promotions within

Promotions provide people more challenging assignments, prescribe new responsibilities, and help employees grow by expanding and developing their abilities. The Peebles Hydro hotel in Scotland is passionate about promoting from within as a way to retain good people and give them opportunities for growth. A maid has been promoted to head housekeeper, a wine waitress to restaurant head, and a student worker to deputy manager.

Small-Batch Productions, Unit Productions

Small-batch production firms produce goods in batches of one or a few products designed to customer specification. This technology also is used to make large, one-of-a-kind products, such as computer-controlled machines. Small-batch manufacturing is close to traditional skilled-craft work, because human beings are a large part of the process. Examples of items produced through small-batch manufacturing include custom clothing, special-order machine tools, space capsules, satellites, and submarines.

Two ways to enhance self awareness

Soliciting feedback •Seeking feedback to enhance self-awareness improves performance and job satisfaction •Blind spots: attributes about themselves that people are not aware of or don't recognize as problems Self-assessment •Reflection to gain insights into oneself from the results of self-assessment instruments

Two keys to self awareness

Soliciting feedback + Using Self-assessment = Greater self-awareness

Benefits

Some benefits required by law Social Security, unemployment compensation, and workers' compensation Additional benefits offered to attract and maintain effective workforce

Termination

Terminations are valuable in maintaining an effective workforce in two ways Poor performing employees can be dismissed Exit interviews can be used to learn about dissatisfaction and reason for departure Exit interview: an interview conducted with departing employees to determine why they are leaving

Matrix

The matrix structure evolved as a way to improve horizontal coordination and information sharing.Footnote One unique feature of the matrix is that it has dual lines of authority. In Exhibit 10.6, the functional hierarchy of authority runs vertically, and the divisional hierarchy of authority runs horizontally. The vertical structure provides traditional control within functional departments, and the horizontal structure provides coordination across departments. The U.S. operation of Starbucks, for example, uses geographic divisions for Western/Pacific, Northwest/Mountain, Southeast/Plains, and Northeast/Atlantic. Functional departments, including finance, marketing, and so forth, are centralized and operate as their own vertical units as well as supporting the horizontal divisions.Footnote The matrix structure, therefore, supports a formal chain of command for both functional (vertical) and divisional (horizontal) relationships. As a result of this dual structure, some employees report to two supervisors simultaneously.

Job based pay

The most common approach to employee compensation is job-based pay, which means linking compensation to the specific tasks an employee performs. However, these systems present several problems. For one thing, job-based pay may fail to reward the type of learning behavior needed for the organization to adapt and survive in a turbulent environment. In addition, these systems reinforce an emphasis on organizational hierarchy and centralized decision making and control, which are inconsistent with the growing emphasis on employee participation and increased responsibility.

Woodwards Manufacturing Technology

The most influential research into the relationship between manufacturing technology and organization structure was conducted by Joan Woodward, a British industrial sociologist.Footnote She gathered data from 100 British firms to determine whether basic structural characteristics, such as administrative overhead, span of control, and centralization, were different across firms.

intangible Service

The output of a service firm is intangible. Services are perishable and, unlike physical products, cannot be stored in inventory. The service is either consumed immediately or lost forever. Manufactured products are produced at one point in time and can be stored until sold at another time

Team based Function

The team approach gives managers a way to delegate authority, push responsibility to lower levels, and be more flexible and responsive in a complex and competitive global environment. One approach to using teams in organizations is through cross-functional teams, which consist of employees from various functional departments who are responsible to meet as a team and resolve mutual problems. Cross-functional teams can provide needed horizontal coordination to complement an existing divisional or functional structure. Frequent use of cross-functional teams is for change projects, such as new product or service innovation. groups of employees who are organized in a way similar to a formal department. Each team brings together employees from all functional areas focused on a specific task or project, such as parts supply and logistics for an automobile plant. Emphasis is on horizontal communication and information sharing because representatives from all functions are coordinating their work and skills to complete a specific organizational task. Authority is pushed down to lower levels, and frontline employees are often given the freedom to make decisions and take action on their own. With a team-based structure, the entire organization is made up of horizontal teams that coordinate their work and work directly with customers to accomplish the organization's goals. At Zappos, for example, the traditional hierarchy has been replaced with a series of overlapping, self-directed teams, which Zappos calls circles. At Zappos, employees don't have traditional bosses or job titles. They are assigned to several roles and may be a part of several different circles at any one time.

Organization chart

Visual representation of an organizations chart The set of formal tasks and formal reporting relationships provides a framework for vertical control of the organization. The characteristics of the vertical structure are portrayed in the organization chart, which is the visual representation of an organization's structure.

Job Satisfaction

a positive attitude toward one's job •Managers create the environment that determines whether employees are positive or negative about their jobs

Recruiting

activities or practices that define the characteristics of applicants to whom selection procedures are ultimately applied Today, recruiting is sometimes referred to as talent acquisition to reflect the importance of the human factor in the organization's success Two types of recruiting, external and internal. External is recruiting outside of the company and internal is recruiting inside of the company

Functional

also called a U-form (unitary structure), activities are grouped together by common function from the bottom to the top of the organization.Footnote The functional structure groups positions into departments based on similar skills, expertise, work activities, and resource use. A functional structure can be thought of as departmentalization by organizational resources because each type of functional activity—accounting, HR, engineering, and manufacturing—represents specific resources for performing the organization's task. People, facilities, and other resources representing a common function are grouped into a single department.

Pay-for-performance

also called incentive pay, means tying at least part of compensation to employee effort and performance, whether it be through merit-based pay, bonuses, team incentives, or various gain-sharing or profit-sharing plans. With pay-for-performance, incentives are aligned with the behaviors needed to help the organization achieve its strategic goals. Employees have an incentive to make the company more efficient and profitable because if goals are not met, no bonuses are paid.

Internship

an arrangement whereby an intern exchanges free or low-cost labor for the opportunity to explore a career or gain valuable work experience in a particular field Companies are increasingly viewing internships as a valuable recruiting tool because they provide a way to "test-drive" a potential employee, as well as allow the intern to evaluate whether the job and the company make a good fit.

Organizational commitment

an employee's loyalty to and engagement with the organization •TRUST is an important component of organizational commitment

Self-Efficacy

an individual's strong belief that he or she can accomplish a specific task or outcome successfully

Chain of command

an unbroken line of authority that links all employees in an organization and shows who reports to whom Unity of command means that each employee is held accountable to only one supervisor. The scalar principle refers to a clearly defined line of authority in the organization that includes all employees. Authority and responsibility for different tasks should be distinct. All individuals in the organization should know to whom they report, as well as the successive management levels all the way to the top. For example, at Standard Chartered Bank, described earlier, managers of the business lines report directly to the CEO

Social Learning

basically means learning informally from others by using social media tools, including mobile technologies, social media, wikis and blogs, virtual games, and so forth. The majority of organizational learning occurs through informal rather than formal channels, so managers are supporting the use of social media technology for learning in day-to-day work

Departmentalization

basis for grouping positions into departments and departments into the total organization Functional•Divisional•Matrix•Team•Virtual network OPEN NOTES

Self-Awareness

being aware of the internal aspects of one's nature, such as personality traits, beliefs, emotions, and perceptions, and appreciating how your patterns affect other people•Effective leaders know who they are and what they stand for•To be a good manager, self-reflection is essential

Acqui-hiring

buying a start up to get the talent has become common in the tech world. Established companies such as Facebook, Google, Yahoo, LinkedIn, and Salesforce.com buy early-stage start-ups, often shutting them down, simply to acquire their engineering talent. Yahoo bought 52 start-ups in less than three years, partly to acquire the talent.

Technical Complexity

degree to which machinery is used in production without people The difference among the three manufacturing technologies is called technical complexity. Note that centralization is high for mass production and low for small-batch and continuous process. Unlike small-batch and continuous process production, standardized mass-production machinery requires centralized decision making and well-defined rules and procedures. The administrative ratio and the percentage of indirect labor required also increase with technological complexity. Because the production process is nonroutine, closer supervision is needed. More indirect labor, in the form of maintenance people, is required because of the machinery's complexity; thus, the indirect/direct labor ratio is high. Span of control for frontline supervisors is greatest for mass production. On an assembly line, jobs are so routine that a supervisor can handle an average of 48 employees. The number of employees per supervisor in small-batch and continuous process production is lower because closer supervision is needed. Overall, small-batch and continuous process firms have somewhat loose, flexible structures (organic), and mass production firms have tight vertical structures (mechanistic).

The behaviorally anchored rating scale (BARS)

developed from critical incidents pertaining to job performance. Each job performance scale is anchored with specific behavioral statements that describe varying degrees of performance. By relating employee performance to specific incidents, raters can more accurately evaluate an employee's performance

Mechanical Organization

efficiency is the goal in a stable environment can be used to explain structural responses to strategy and the environment.Footnote Goals of efficiency and a stable environment are associated with a mechanistic system. This type of organization typically has a rigid, vertical, centralized structure, with most decisions made at the top. The organization is highly specialized and characterized by rules, procedures, and a clear hierarchy of authority Strategic Goals: Cost Leadership, Stability, efficiency Functional Structure, Functional with interdepartmental task forces, Integrators

Selection

employers assess applicants' characteristics in an attempt to determine the "fit" between the job and applicant characteristics. The most frequently used selection devices are the application form, interview, and employment test. In general, the greater the skill requirements and work demands of an open position, the greater the number and variety of selection tools the organization will use

Perceptual Distortions

errors in perceptual judgment that arise from inaccuracies in any part of the perception process.

Fast-track hiring

filling jobs in days or hours Fast track hiring is being used particularly in high-tech industries. "The best candidates get snagged quickly,"

Self-Confidence

general assurance in one's own ideas, judgment, and capabilities Self-efficacy is one dimension of self-confidence

Realistic Job Preview

gives applicants all pertinent and realistic information about the job and the organization Contributes to employee satisfaction and reduces turnover because RJPs facilitate matching people to positions. Which give applicants all pertinent and realistic information—positive and negative—about the job and the organization

Self-Serving Bias

giving too much credit to yourself for doing well and blaming external factors for failing Laszlo Bock, the senior vice president of people operations at Google, says humility is an important characteristic the company looks for when hiring because highly intelligent, successful people can tend to have a self-serving bias. That is, they think "if something good happens, it's because I'm a genius. If something bad happens, it's because someone's an idiot or I didn't get the resources or the market moved,"

Interview

his is another area where the organization can get into legal trouble if the interviewer asks questions that violate EEO guidelines Structured interviews- use a set of standardized questions that are asked of every applicant so comparisons can easily be made. Nondirective Interview- the interviewer asks broad, open-ended questions and permits the applicant to talk freely, with minimal interruption. Panel interviewing- in which the candidate meets with several interviewers who take turns asking questions.

Halo Effect

in which a manager gives an employee the same rating on all dimensions, even if his or her performance is good on some dimensions and poor on others

Organic Organization

innovation is the goal in a rapidly changing environment With goals of innovation and a rapidly changing environment, however, the organization tends to be much looser, free-flowing, and adaptive, using an organic system. The structure is more horizontal, and decision-making authority is decentralized. People at lower levels have more responsibility and authority for solving problems, which enables the organization to be more fluid and adaptable to changes. Strategic goals: Innovation, Differentiation, Flexibility Divisional Structure Horizontal teams

Job Analysis

is a systematic process of gathering and interpreting information about the essential duties, tasks, and responsibilities of a job, as well as about the context within which the job is performed. To perform job analysis, managers or specialists ask about work activities and work flow, the degree of supervision given and received in the job, knowledge and skills needed, performance standards, working conditions, and so forth.

Task Force

is a temporary team or committee designed to solve a problem involving several departments.Footnote Task force members represent their departments and share information that enables coordination. For example, at Irving Medical Center, a unit of Kaiser Permanente in California, a task force made up of operating room nurses, surgeons, technicians, housekeeping staff, and others came together to streamline the procedure for performing total-hip and knee-joint replacements, the hospital's costliest and most time-consuming surgeries. The resulting combination of enhanced coordination and reallocated resources meant that the number of these surgeries that could be performed increased from one or two a day up to four a day. Better coordination freed up 188 hours of operating room time a year, reflecting a significant cost savings.

Corporate Universities

is an in-house training and education facility that offers broad-based learning opportunities for employees—and frequently for customers, suppliers, and strategic partners as well—throughout their careers.Footnote One well-known corporate university is Hamburger University, the McDonald's worldwide training center. This institution is so well respected that its curriculum is recognized by the American Council on Education, so employees can actually earn college credits. There are now seven locations of Hamburger University around the world, including in São Paulo, Shanghai, Munich, and Mumbai

Authoritarianism

is the belief that power and status differences should exist within the organization.Footnote Individuals high in authoritarianism tend to be concerned with power and toughness, obey recognized authority above them, stick to conventional values, critically judge others, and oppose the use of subjective feelings. The degree to which managers possess authoritarianism will influence how they wield and share power

Responsibilities

is the duty to perform the task or activity as assigned. Typically, managers are assigned authority commensurate with their responsibilities. When managers have responsibility for task outcomes but little authority, the job is possible but difficult. In this situation, managers rely on persuasion and luck. When managers have the authority that exceeds responsibility, they may become tyrants and use authority to achieve frivolous outcomes

Authority

is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes. Authority is distinguished by three characteristics Authority is vested in organizational positions, not people. Managers have authority because of the positions they hold, and other people in the same positions would have the same authority. Authority flows down the vertical hierarchy. Positions at the top of the hierarchy are vested with more formal authority than position at the bottom. Authority is accepted by subordinates. Although authority flows from the top down, subordinates comply because they believe managers have a legitimate right to issue orders. The acceptance theory of authority argues that a manager has authority only if subordinates choose to accept his or her commands. If subordinates refuse to obey because the order is outside their zone of acceptance, a manager's authority disappears

Span of management

is the number of employees reporting to a supervisor. Sometimes called the span of control, this characteristic of structure determines how closely a supervisor can monitor subordinates. Traditional views of organization design recommended a span of management of about 7 to 10 subordinates per manager. However, many lean organizations today have spans of management numbering 30, 40, and even higher. At PepsiCo, Inc.'s Gamesa cookie operation in Mexico, for instance, employees are trained to keep production running smoothly and are rewarded for quality, teamwork, and productivity. Teams are so productive and efficient that Gamesa factories operate with around 56 subordinates per manager. Less supervision/larger spans of control •Work is stable and routine •Subordinates perform similar work •Subordinates are in one location •Subordinates are highly trained •Rules and procedures are defined•Support systems and personnel are available •Few nonsupervisory activities •Manager prefers a large span The average span of control used in an organization determines whether the structure is tall or flat. A tall structure has an overall narrow span and more hierarchical levels. A flat structure has a wide span, is horizontally dispersed, and has fewer hierarchical levels.

Application form

is used to collect information about the applicant's education, previous job experience, and other background characteristics. Research shows that biographical information inventories can validly predict future job success Avoid irrelevant questions Avoid questions with adverse impact (1) an applicant's response might adversely affect his or her chances at the job, (2) minorities and women may be less likely to own a home, and (3) home ownership is probably unrelated to job performance.

Attributions

judgments about the cause of a person's behavior •Internal attribution: person caused behavior •External attribution: situation caused behavior People make attributions as an attempt to understand why others behave as they do. An internal attribution says that characteristics of the person led to the behavior. ("Sophia missed the deadline because she's careless and lazy.") An external attribution says that something about the situation caused the person's behavior. ("Sophia missed the deadline because she couldn't get the information she needed in a timely manner.") Understanding attributions is important because attributions influence how a manager will handle a situation. In the case of the missed deadline, a manager who blames it on the employee's personality will view Sophia as the problem and might give her unfavorable performance reviews and less attention and support. In contrast, a manager who blames the behavior on the situation might try to prevent such situations in the future, such as by improving horizontal communication mechanisms so people get the information that they need in a timely way.

Online Check

looking at social media, criminal history, and other things

Collaboration

means a joint effort between people from two or more departments to produce outcomes that meet a common goal or shared purpose and that are typically greater than what any of the individuals or departments could achieve working alone.

Virtual Network Structure

means that the firm subcontracts most of its major functions to separate companies and coordinates their activities from a small organization at headquarters. Involves a lot of outsourcing, which is sending all their work elsewhere. Rather than having their own labs and research teams, startups such as Alkeus Pharmaceuticals and Rodin Therapeutics work with contract research organizations (CROs) that perform much of their lab and clinical work. Other functions are also outsourced. Alkeus, for example, which is working on finding treatments for "serious and untreatable diseases of the eye," operates with zero full-time employees. Co-founder and CEO Leonide Saad says the virtual approach offers numerous advantages, but he admits it can be challenging to work with contractors who might not be fully committed to the company's mission.

Discrimination

occurs when hiring and promotion decisions are made based on criteria that are not job-relevant; for example, refusing to hire a black applicant for a job that he is qualified to fill and paying a woman a lower wage than a man for the same work are discriminatory acts. When discrimination is found, remedies include providing back pay and taking affirmative action.

Halo Effect

occurs when the perceiver develops an overall impression of a person or situation based on one characteristic, either favorable or unfavorable. In other words, a halo blinds the perceiver to other characteristics that should be used in generating a more complete assessment. The halo effect can play a significant role in performance appraisal, as we discussed in Chapter 12. For example, a person with an outstanding attendance record may be assessed as responsible, industrious, and highly productive; another person with less-than-average attendance may be assessed as a poor performer. Either assessment may be true, but it is the manager's job to be sure that the assessment is based on complete information about all job-related characteristics, not just the employee's preference for good attendance.

job specification

outline of characteristics needed to perform the job

Project Manager

person who is responsible for coordinating the activities of several departments for the completion of a specific project •Project manager is not a member of one of the departments being coordinated is a person who is responsible for coordinating the activities of several departments for the completion of a specific project.Footnote Project managers might also have titles such as product manager, integrator, program manager, or process owner. The distinctive feature of the project manager position is that the person is not a member of one of the departments being coordinated. Project managers are located outside the departments and are responsible for coordinating several departments to achieve desired project outcomes. At General Mills, for example, a manager is assigned to each product line, such as Cheerios, Yoplait yogurt, and Annie's macaroni and cheese. Product managers set budget goals, marketing targets, and strategies and obtain the cooperation from advertising, production, and sales personnel needed for implementing product strategy.

360-degree feedback

process that uses multiple raters, including self-rating, as a way to increase awareness of strengths and weaknesses and guide employee development Members of the appraisal group may include supervisors, coworkers, and customers, as well as the individual, thus providing a holistic view of the employee's performance. When used appropriately, 360-degree feedback can lead to a more valid assessment of performance as well as identify greater development opportunities for employees. Some companies use social networking-style systems to make 360-degree performance feedback a dynamic, ongoing process. For example, people can post short, Twitter-style questions about their performance of a particular task and get feedback from managers, peers, or anyone else the user selects

Employer Brand

promoting an organization as a highly desirable place to work Both small and large companies are using employer branding to attract desirable job candidates. An employer brand is similar to a product brand, except that rather than promoting a specific product, its aim is to make the organization seem like a highly desirable place to work. Employer-branding campaigns are like marketing campaigns to "sell" the company and attract the best job candidates.

Re-engineering

radical redesign of business processes to achieve dramatic improvements refers to the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed. Because the focus of re-engineering is on horizontal workflows rather than functions, re-engineering generally leads to a shift away from a strong vertical structure to one emphasizing stronger horizontal coordination. The vertical hierarchy is flattened, with perhaps only a few senior executives in traditional support functions such as finance and HR.

Compensation

refers to (1) all monetary payments and (2) all goods or commodities used in lieu of money to reward employees. Over the past 15 years, most HR managers have used the term rewards or total rewards rather than compensation, to include a broad range of rewards such as wages and salaries, incentive payments, bonuses, and benefits such as health insurance, paid vacations, or other benefits.

Locus of Control

refers to how people perceive the cause of life events—whether they place the primary responsibility within themselves or on outside forces. Some people believe that their own actions strongly influence what happens to them. They feel in control of their own fate. These individuals have a high internal locus of control. Other people believe that events in their lives occur because of chance, luck, or outside people and events. They feel more like pawns of their fate. These individuals have a high external locus of control. High Internal- You control your fate High external- the outside world controls your fate

performance appraisal

refers to observing and assessing employee performance, recording the assessment, and providing feedback to the employee. Managers give feedback and praise concerning the acceptable elements of the employee's performance and also describe performance areas that need improvement. One of the biggest talent management mistakes, according to management expert Ram Charan, is the failure to provide candid performance assessments that focus on development needs

Job Evaluation

refers to the process of determining the value or worth of jobs within an organization through an examination of job content. Job evaluation techniques enable managers to compare similar and dissimilar jobs and to determine internally equitable pay rates—that is, pay rates that employees believe are fair compared to those for other jobs in the organization.

Affirmative action

requires that an employer take positive steps to guarantee equal employment opportunities for people within protected groups.

Personality

set of characteristics that underlie a relatively stable pattern of behavior in response to ideas, objects, or people in the environment

Skill based pay

skill-based pay systems are increasingly popular in both large and small companies. Employees with higher skill levels receive higher pay than those with lower skill levels. Also called competency-based pay, skill-based pay systems encourage people to develop their skills and competencies, thus making them more valuable to the organization, as well as more employable if they leave their current jobs.

Division of labor

sometimes called work specialization, is the degree to which organizational tasks are subdivided into separate jobs. Division of labor in Exhibit 10.1 is illustrated by the separation of production tasks into bottling, quality control, and maintenance. Employees within each department perform only the tasks relevant to their specialized function. When organizations face new strategic issues, managers often create new positions or departments to deal with them. Sony added a new position of a chief information security officer to its hierarchy after hackers accessed millions of customer files on the supposedly secure Sony network. Losing popularity because too much specialization leads to employee isolation and boredom When division of labor is extensive, employees specialize in a single task. Jobs tend to be small, but they can be performed efficiently. Division of labor is readily visible on an automobile assembly line, where each employee performs the same task over and over again. It would not be efficient to have a single employee build the entire automobile, or even perform a large number of unrelated jobs.

Job Description

summary of the tasks, duties, and responsibilities of a job

Employment Test

tests that may include cognitive ability tests, physical ability tests, personality inventories, and other assessments Cognitive ability tests measure an applicant's thinking, reasoning, verbal, and mathematical abilities. IQ tests, for example, have been found to be the most consistent predictor of good performance across a variety of jobs because a high IQ shows a candidate's ability to learn.Footnote Many companies also use various types of personality tests to assess such characteristics as openness to learning, agreeableness, conscientiousness, creativity, and emotional stability. In addition, companies look for personality characteristics that match the needs of the particular job so that there is a good fit. One company found that people who score well in traits such as assertiveness and extroversion typically make good salespeople, so they looked for those traits in testing candidates for new positions.Footnote Interestingly, numerous studies show that personality tests are better predictors of future career success than job interviews, letters of recommendation, and educational credentials Brian Teasers, being used by companies that put a premium on innovativeness and problem solving. The answers aren't as important as how the applicant goes about solving the problem.

Blind Hiring

that focuses managers on an applicant's job skills and performance rather than educational credentials, appearance, or prior experience. Some companies, such as Compose Inc., a cloud storage company recently acquired by IBM, don't ask for résumés, which may contain cues that bias readers. Others redact information such as an applicant's name, alma mater, or other identifying data, so managers won't be subconsciously influenced. With blind hiring, people are usually asked to complete a project or assignment that relates to the type of work they'll be doing if hired. Proponents of blind hiring say it contributes to better, more diverse hiring

Perception

the cognitive process people use to make sense of the environment by selecting, organizing, and interpreting information from the environment is the cognitive process that people use to make sense out of the environment by selecting, organizing, and interpreting information from the environment. Because of individual differences in personality, values, interests, and so forth, people often "see" the same thing in different ways. A class that is boring to one student might be fascinating to another. One student might perceive an assignment to be challenging and stimulating, whereas another might find it a silly waste of time. PERCEPTION PROCESS Observe- Screen- Organize OSO

Organizing

the deployment of organizational resources to achieve strategic goals •Organizing is important because it follows from strategy •Strategy defines what to do, and organizing defines how to do it

Human Resources Management

the design and application of formal systems in an organization to ensure the effective and efficient use of human talent to accomplish organizational goals This includes activities undertaken to attract, develop, and maintain an effective workforce. Managers have to find the right people, place them in positions where they can be most effective, and develop them so that they contribute to company success.

Human Capital

the economic value of the combined knowledge, experience, skills, and capabilities of employees Managers around the world often cite human capital as the top factor in maintaining competitive success, which reflects the critical role of managing talent

Human Resource planning

the forecasting of HR needs and the projected matching of individuals with expected job vacancies Human resource planning begins with several big-picture questions: What new technologies are emerging, and how will these affect the work system? How much is the volume of the business likely to change in the next five to ten years? What is the turnover rate, and how much, if any, is avoidable? The responses to these questions are used to formulate specific questions pertaining to HR activities, such as the following: What types of engineers will we need, and how many? How many administrative personnel will we need to support the additional engineers? Can we use temporary, part-time, or virtual workers to handle some tasks?

Coordination

the managerial task of collaborating across departments refers to the managerial task of adjusting and synchronizing the diverse activities among different individuals and departments Without coordination, a company's left hand will not act in concert with the right, causing problems and conflicts. Coordination is required regardless of whether the organization has a functional, divisional, or team structure. Employees identify with their immediate department or team, taking its interest to heart, and they may not want to compromise and collaborate with other units even for the good of the organization as a whole. Poor coordination and collaboration among divisions are blamed for Microsoft's late entry into the profitable smartphone and tablet markets, for instance. Top managers have implemented structural changes to try to build in stronger horizontal coordination, moving toward a matrix structure.

Matching Model

the organization and the individual attempt to match the needs, interests, and values that they offer each other For example, a small software developer might require long hours from creative, technically skilled employees. In return, it can offer freedom from bureaucracy, tolerance of idiosyncrasies, and potentially high pay. A large manufacturer can offer employment security and stability, but it might have more rules and regulations and require a greater ability to "get approval from the higher-ups." The individual who would thrive working for the software developer might feel stymied and unhappy working for a large manufacturer. Both the company and the employee are interested in finding a good match.

StereoTyping

the tendency to assign an individual to a group or broad category (e.g., female, black, elderly; or male, white, disabled) and then to attribute widely held generalizations about the group to the individual. As an example, someone meets a new colleague, sees that he is in a wheelchair, assigns him to the category "physically disabled," and attributes to this colleague generalizations that she believes about people with disabilities, which may include a belief that he is less able than other coworkers. However, the person's inability to walk should not be seen as indicative of lesser abilities in other areas

On the job training

where an experienced employee is asked to take a new employee "under his or her wing" and show the newcomer how to perform job duties. When implemented well, OJT is considered the fastest and most effective means of facilitating learning in the workplace

Machiavellianism

which is characterized by the acquisition of power and the manipulation of other people for purely personal gain. Research shows that high Machs are predisposed to being pragmatic, capable of lying to achieve personal goals, more likely to win in win-lose situations, and more likely to persuade than be persuaded.

Stereotyping

which occurs when a rater places an employee into a class or category based on one or a few traits or characteristics—for example, stereotyping an older worker as slower and more difficult to train.

role ambiguity

. Task demands also sometimes cause stress because of role ambiguity, which means that people are unclear about what task behaviors are expected of them. In a survey by the American Psychological Association (APA), 35 percent of respondents cited unclear job expectations as a cause of their workplace stress.

Challenge Stress and Threat Stress

C- stress that challenges and increases your focus, alertness, efficiency, and productivity T-stress that is counterproductive Challenge stress fires you up, whereas threat stress burns you out.Footnote As originally proposed by two Harvard researchers, Robert Yerkes and John Dodson, and illustrated in Exhibit 14.12, a certain level of stress challenges you and increases your focus, alertness, efficiency, and productivity.Footnote After that point, however, things go downhill quickly, and stress compromises your job performance, your relationships, and even your health. Another interesting finding is that too much stress inhibits learning and flexibility.Footnote

Basic Principles of self-management

Clarity of mind. The first principle is that, if you're carrying too much around in your head, your mind can't be clear. If your mind isn't clear, you can't focus. If you can't focus, you can't get anything done. Thus, anything you consider unfinished needs to be placed in some kind of trusted system outside your head. Clarity of objectives. Next, you have to be clear about exactly what you need to do and decide the steps to take toward accomplishing it. An organized system. Finally, once you've decided the actions that you need to take, you need to keep reminders in a well-organized system

Contemporary Leadership

Concept of leadership evolves as the needs of organizations change •Leadership has evolved with technology, economic conditions, labor conditions, and social and cultural mores of the times •Response to the turbulence and uncertainty of the environment

Presenteeism

Just as big a problem for organizations as absenteeism is presenteeism, which refers to people who go to work but are too stressed and distracted to be productive

4 components of Emotional Intelligence

Self-awareness Self-management Social awareness Relationship management

Interpersonal Demand

Stressors associated with relationships in the organization are stressors associated with relationships in the organization. Although interpersonal relationships can alleviate stress in some cases, they also can be a source of stress when the group puts pressure on an individual or when conflicts arise between individuals.

Situational model

This approach focuses a great deal of attention on the characteristics of followers in determining appropriate leadership behavior. The point of the situational model is that subordinates vary in readiness, which is determined by the degree of willingness and ability that a subordinate demonstrates while performing a specific task Extension of behavioral theories •Focuses on characteristics of followers •Seeks appropriate leadership behavior •Subordinates vary in readiness •Readiness is determined by subordinate's degree of willingness and ability

Type A behavior vs. Type B behavior

Type A behavior: a behavior pattern characterized by extreme competitiveness, impatience, aggressiveness, and devotion to work Type B behavior: a behavior pattern that lacks Type A characteristics and includes a more balanced, relaxed lifestyle TYPE A ____For example, David Sacks, founder of Yammer and current CEO of Zenefits, says he is "in a perpetual state of frustration over the product. I want it to be perfect and it's not." He adds, "I think about work constantly, I wish I had an On/Off switch.

Emotions

a mental state that arises spontaneously within a person based on interactions with the environment rather than through a conscious effort and is often accompanied by physiological changes or sensations

Leadership

as defined here, is the ability to influence people toward the attainment of goals.

Strengths

are natural talents and abilities that have been supported and reinforced with learned knowledge and skills and provide each individual with his or her best tools for accomplishment and satisfaction.

Task Demands

are stressors arising from the tasks required of a person holding a particular job. Some kinds of decisions are inherently stressful: those made under time pressure, those that have serious consequences, and those that must be made with incomplete information. For example, emergency room doctors are under tremendous stress as a result of the task demands of their jobs. They regularly have to make quick decisions based on limited information that may determine whether a patient lives or dies. Jobs in which people have to deal with irate customers can also be highly stressful. Turnover among customer service employees can be as high as 300 percent a year in some industries

Emotional Intelligence

emotional intelligence has shown that managers who are in touch with their own feelings and the feelings of others can enhance employee and organizational performance.

Stress

is an individual's physiological and emotional response to external stimuli that place physical or psychological demands on the individual and create uncertainty and lack of personal control when important outcomes are at stake.

Contingency approaches

methods of exploring how the organizational situation influences leader effectiveness Situational model •Fiedler's contingency theory •Situational substitutes

Role Conflict

occurs when an individual perceives incompatible demands from others. Managers often feel role conflict because the demands of their superiors conflict with those of the employees in their department. They may be expected to support employees and provide them with opportunities to experiment and be creative, while at the same time top executives are demanding a consistent level of output that leaves little time for creativity and experimentation.

3 aspects of leadership

people, influence, and goals

Neutralizer

something that counteracts the leadership style and prevents the leader from displaying certain behaviors

SITUATIONAL SUBSTITUTES FOR LEADERSHIP

something that makes the leadership style unnecessary or redundant

Stressor

stimuli that produce a combination of frustration and anxiety

Causes of work stress

task demands and interpersonal demands

Self-Management

the ability to engage in self-regulating thoughts and behavior to accomplish all your tasks and handle difficult or challenging situations

emotional cognition

the tendency of people to absorb and express the emotions, moods, and attitudes of those around them If we're around someone who is happy and enthusiastic, the positive emotions rub off on us. On the other hand, someone who is sad and angry can bring us down. Managers who express positive emotions such as happiness, enthusiasm, and appreciation trigger positive emotions and behavior in employees.

Servant leader

transcends self-interest to serve others, the organization, and society