OB Exam III

What Followers Want From Leaders

Significance Community Excitement

Techniques for Groupthink

1. Each member assigned as critical evaluator 2. Top-level executives should not use policy committees to BS people 3. Different groups w/ different leaders should explore the same policy questions 4. Managers should encourage subgroup debates and bring in outside experts 5. Someone should be devil's advocate 6. Once consensus is reached, everyone should rethink their position and check for flaws

Key Issues When Making Organizational Design Decisions

1. Strategy and goals 2. Technology 3. Size 4. Human resources

Stages of Rational Decision Making Model

1: Identify the problem or opportunity 2: Generate Alternate solutions 3: Evaluate alternatives and select solution 4: Implement and evaluate the solution

Product innovation

A change in the appearance or the performance of a product or service or the creation of a new one

Process innovation

A change in the way a product or service is conceived, manufactured or distributed

Information Acquisition

AKA scanning "refers to the process through which an organization obtains information from internal and external sources." Advantageous for organizations to include breadth in their acquisition of information

What is Power?

Ability to marshal human, informational, and other resources to get something done Key is "ability" It's about influencing others

Characteristics of Effective Apologies

Acknowledgement of wrongdoing Acceptance of responsibility Expression of regret Promise offense will not be repeated Failure to not apologize or do so in a timely manner can turn a bad situation worse

Task Structure

Amount of structure contained within tasks performed by the work group Structured tasks have guidelines for how the job should be completed so the leader has more control and influence over employees performing the tasks

Impression Management

Any attempt to control or manipulate the image related to a person, organization or idea using speech, behavior, or appearance Most impression management attempts are direction at making a good impression on important other people (ex: investors) Remember anyone can be intended target of impression management - parents, teachers, peers, employees (ex: providing a good impression to a store clerk to give me the best deal)

Goal Accomplishment Approach

Appropriate when goals are clear, consensual, time-bound, and measurable

Recourse Acquisition Approach

Appropriate when inputs have a traceable effect on results or output (Incoming sub-par students as inputs and sub-par students as outputs)

Internal Process Approach

Appropriate when organizational performance is strongly influenced by specific processes (Clarkson - employable students and good research)

Strategic Constituencies Approach

Appropriate when powerful stakeholders can significantly benefit or harm the organization

Managers

Are accountable Execute Manage resources Plan, organize, direct, control

The Trait Approach

Attempts to identify personality characteristics or interpersonal attributes that differentiate leaders from followers Early research: -Intelligence -Dominance -Self-confidence -Level of energy and activity -Task-relevant knowledge (facts that you know) Leader were "born" not "made" Not accurate anymore

Behavioral Styles Approach

Attempts to identify unique behaviors displayed by effective leaders Leaders rely on many different types of behaviors to influence others and to accomplish goals These can be boiled into four categories: -Task oriented -Relationship-oriented -Passive -Transformational

Examples of Passive (laissez-faire) Leadership

Avoiding conflict Failing to provide coaching on difficult assignments Failing to assist employees in setting performance goals Failing to give performance feedback Being so hands-off employees have little idea about what they should be doing

Fiedler's Contingency Model Cont.

Based on three dimensions of situational control -Leader-member relations -Task structure -Position power

Approaches to Decision Making

Centralized Decentralized Challenge is to achieve a workable balance These are the differences between mechanistic and organic

Aspects of leadership

Creating and communicating a vision Influencing others through use of power Motivating task behavior in pursuit of shared objectives Establishing and maintaining group culture Empowering others Clarifying roles and niche in marketplace Making tough decisions with limited information

Anchoring Bias

Decision makers are influenced by the first information received about a decision even if irrelevant Because of initial information, impression, stereotypes

Effective Structural Empowerment

Decision making authority is only shared with those who are competent to do what is necessary Remember Empowerment is not a zero-sum game Remember Empowerment is a matter of degree; not an either-or position Goal is to increase productivity, competitiveness in organizations, power of contributors who were traditionally told what, when, and how to do things Pushes decision making to lower levels

Levels of Organizational Culture - Basic Underlying Assumptions

Deeply engrained/automatic Organizational values that have become so taken for granted over time that they become assumptions that guide organizational behavior They represent deep-seated beliefs that employees have about their company and thus constitute the core of organizational culture As you might expect, basic underlying assumptions are highly resistant to change

Rules for Brainstorming

Defer judgement Build on the ideas of others Encourage wild ideas Go for quantity or quality Be visual Stay focused on topic One conversation at a time

Representative Bias

Estimate the probability of an event occurring based off similar events (buying stock because the company follows a cyclic trend)

Situational Theories

Grew out of realization there is no best way to lead Effectiveness of leader depends on situation As situations change, different styles become appropriate

What is Decision Making

Identifying and choosing alternative solutions that lead to a desired state of affairs

Organizational Politics

Intentional acts of influence to enhance or protect the self-interest of individuals Not endorsed by or aligned with the interests of the organization Emphasis on self-interest Proper balance or alignment exists, the pursuit of self interest may also serve the organization's best interest When political activities are out of balance and/or conflict with organization's interest - considered negative and not endorsed by organization

Types of Innovation - Product vs. Process

Managers often need to improve a product or service they offer in response to competition or customer feedback. Often amounts to a technological innovation. Alternatively, managers may need to improve the process by which a product is made or a service is offered. Typically amounts to a process improvement.

Framing Bias

Manner in which a question is posed or framed. Shows how important our decisions are influenced by the manner a problem is framed

Types of Organizational Structure - Virtual (Open)

Members are geographically apart working with e-mail and other forms of information technology Appears to customers as a single, unified organization with a real physical location Primary benefits are the ability to tap into a wider talent pool, increase the speed in getting things done, and reduce costs associated with less need for physical facilities and travel budgets. Nature of virtual organizations has expanded since their inception - classified into two different types: internal and networked.

Developmental Networks Underlying Mentoring

Mentoring is currently viewed as a process in which protégés and protégées seek developmental guidance from a network of people (developers) Figure 14.6 presents a developmental network typology based on integrating the diversity and strength of developmental relationships. Diversity reflects the variety of people within the network an individual uses for developmental assistance. Two subcomponents associated with network diversity: -the number of different people the person is networked with and -the various social systems from which the networked relationships stem (e.g., employer, school, family, community, professional associations, and religious affiliations). Developmental relationship diversity ranges from low (few people or social systems) to high (multiple people or social systems)

Nonrational Models of Decision Making

Models of decision making that explains how managers actually make decisions Two nonrational models: Normative Model Intuition Model

The Dark Side Traits

Narcissism: Having self-centered perspective, having feelings of superiority Machiavellianism: Use of manipulation and cynical view, moral code puts results over principles Psychopathy: Lack of concern for others, impulsively, lack remorse or guilt when actions harm others

Practical Research Insights

No one type (mechanistic or organic) is superior to the other - depends on the environment Mechanistic - Works when environment is stable and certain Organic - Works when environment is unstable and uncertain

Types of Organizational Structure - Matrix (Traditional)

Organizations use matrix structures when they need stronger horizontal alignment or cooperation in order to meet their goals. Combines a vertical structure with an equally strong horizontal overlay combining functional and divisional chains to form a grid with two command structures. -One shown vertically by function -The other shown horizontally by product line, brand, customer group, or geographic region. Problem: 2 command structures = 2 managers

Overconfidence Bias

Overconfident about estimates or forecasts Grows in strength when people are asked moderate to extremely difficult questions rather than easy ones (stock market)

Drivers of Creative Performance Behaviors

Person Factors - Big Five personality dimensions, innovative cognitive style, self-efficacy, willingness to tolerate ambiguity, proactive personality Environmental Characteristics - Meaningful work, positive relationships with coworkers, feedback, aesthetics of work setting Organizational climate/organizational culture - culture that tolerates some failure Managerial behavior and organizational policies and procedures are key to influence climate and culture

Management Characteristics

Planning and budgeting Organizing and staffing Controlling a problem (Control, stability, getting the job done)

Organizational Socialization (outsider to insider)

Process by which a person learns the values, norms, and required behaviors which permit them to participate as a member of an organization Can be represented in a three phase model: -Anticipatory socialization -Encounter -Change and acquisition Each phase has associated perceptual and social processes and also specifies behavioral and affective outcomes that can be used to judge how well an individual has been socialized. Three step sequence may take from a few weeks (cashier) to a year (engineer) to complete, depending on individual differences and the complexity of the situation.

Mentoring

Process of forming and maintaining intensive and lasting developmental relationships between a variety of developers (i.e., people who provide career and psychosocial support) and a junior person (the protégé, if male; or protégée, if female). Serve to embed an organization's culture when developers and protégé/protégée work in the same organization for two reasons. - First, mentoring contributes to creating a sense of oneness by promoting the acceptance of organization's core values - Second, the socialization aspect of mentoring promotes a sense of membership.

Creativity

Process of producing new and useful ideas concerning products, services, processes and procedures One can create something new (creation), combine or synthesize things (synthesis), or change things (modification) Represent four key behaviors that drive production and creative outcomes

What is Leadership?

Process whereby an individual influences a group of individuals to achieve a common goal You do not need to have a formal position of authority to be a leader Anyone who exerts influence over others in the pursuit of organizationally relevant matters is a leader

Matrix Structure Pros & Cons

Pros: Combines advantages of functional and divisional Cons: Violates unity of command Decision making can be slow Political behavior can occur Requires extensive communication

Organizational Systems

Reveal basic dimensions of organizational structure Closed system - Self sufficient entity, closed to the surrounding environment Open system - Depends on constant interaction with the environment for survival (most companies)

Organization Charts

Reveal basic dimensions of organizational structure Hierarchy of Authority -> Division of Labor -> Spans of control (how many people report to a given manager)-> Line and staff positions

How Five Bases of Power Relate to Reactions to Power

Reward + Coercive + Negative Legitimate -> Produce Compliance Positive Legitimate + Referent + Expert -> Foster Commitment

Disadvantages of Group Decision Making

Social pressure (leads to conformity/stifles creativity) A few people dominate Goal displacement (trying to win or impress someone which can override the primary goal) Groupthink (when people are involved in a group and don't express concerns even though it may be a bad idea)

Benefits of Intuition

Speed up decision making - valuable under time constraints Useful when resources are limited

Applying Situational Theories

Step 1: Identify important outcomes (goals) Step 2: Identify relevant leadership behaviors (specific to the situation) Step 3: Identify situational conditions (both Fieldler's and House identify contingency factors) Step 4: Match leadership to conditions at hand (best leadership styles/behavior and situation) Step 5: Determine how to make the match (use guidelines from contingency theory or path-goal theory - change the leader or have the leader change his or her style)

1. Strategy and goals

Strategy is the cornerstone of determining the most appropriate design Essential that organizational design be developed in tandem with establishing strategy.

What is an Organization?

System of consciously coordinated activities or forces of two or more persons Common denominators of all organizations: -Coordination of effort -Aligned goals -Division of labor -Hierarchy of authority (aka chain of command)

Types of Organizational Structure - Horizontal

Teams or workgroups, either temporary or permanent, created to improve collaboration and work on common projects This horizontal approach to organizational design tends to focus on work processes. A process consists of every task and responsibility needed to meet a customer need (developing a new product or filling a customer order) Completing a process requires input from people in different functions (typically organized into a cross-functional team)

Escalation of Commitment

Tendency to stick to an ineffective course of action when the bad decision can't be reversed

Goal Accomplishment

The oldest and most widely used effectiveness criterion for organizations. Key organizational results compared with previously stated goals or objectives. Deviations, either plus or minus, require corrective action.

Evidence Based Decision Making (EBDM)

Using the best available data and evidence when making managerial decisions Evidence used in three ways: -To make a decision -To inform a decision -To support a decision (get people to support a decision)

Decentralized

When important decisions are made by middle and lower-level managers Organization is more adaptive to changing situations Used in organic organizations

Centralized

When key decisions are made by top management Organization is more tightly controlled Used in mechanistic organizations

Levels of Organizational Culture - Artifacts

(part of iceburg seen) The physical manifestation of an organization's culture - less important Organizational examples include: -Acronyms (ex: E&M) -Manner of dress -Awards -Myths and stories told about the organization -Published lists of values -Observable rituals and ceremonies (Graduation) -Special parking spaces -Decorations Important to remember that artifacts are easier to change than the less visible aspects of organizational culture

Four Truths About Culture Change

1. Leaders are the architects and developers of organizational culture. This suggests that culture is not determined by fate. It is formed and shaped by the ongoing behavior of everyone who works at a company 2. Changing culture starts with targeting one of the three levels of organizational culture—observable artifacts, espoused values, and basic underlying assumptions. The fastest way to start a culture change project is through the use of observable artifacts 3. Consider how closely the current culture aligns with the organization's vision and strategic plan. Remember the quote "culture eats strategy for breakfast" whenever you pursue culture change. Essential that an organization's culture is consistent with vision and strategic goals. A vision represents a long-term goal that describes "what" an organization wants to become. A strategic plan outlines an organization's long-term goals and the actions necessary to achieve those goals. 4. Use a structured approach when implementing culture change. Culture change is met with resistance. Happens because people become accustomed to the culture and they prefer to leave things as they are.

Implicit Leadership Theory

Based on idea that people have beliefs about leaders should behave and what they should do for others These beliefs are summarized in a leadership prototype: - mental representation of the traits and behaviors that people believe are possessed by leaders (mental model) - understand the content of leadership prototypes because we tend to perceive that someone is a leader when he or she exhibits traits consistent with our prototype

Structural Empowerment

Based on transferring authority and responsibilities from the manager to the employees Job Design + Team Design + Changing Policies + Changing Procedures -> Boosting Employee Empowerment Increase in: Effectiveness of decision making, performance, well being, job related attitudes

Task Oriented Leader Behavior

Behaviors like planning, clarifying, monitoring, and problem solving Primary purpose: ensure people, equipment, and other resources are used in an efficient way Types: -Initiating structure -Transactional leadership

Relationship-Oriented Leader Behavior

Behaviors that are supporting (e.g., helping people deal with stressful events), developmental (e.g., providing career advice), appreciative (e.g., providing positive praise), and empowering (e.g., allowing employees to make decisions). Primary purpose - enhance employees' skills and to create positive work relationships Relationship-oriented behaviors: -Consideration -Empowerment -Servant-leadership THEME IS PEOPLE

Frequently Used Political Tactics

Build network Using key players Making friends with Power Brokers Bending rules to fit situation Self-promotion Creating favorable image Praising others Attacking or blaming others Using information as political tool

Passive Leader Behavior

Called laissez-faire leadership General failure to take responsibility for leading Can be demoralizing and makes employees feel unsupported

Takeaways from Trait Theory

Can no longer ignore implications of leadership traits Positive traits cultivated, dark side traits avoided Organizations should included personality testing and trait assessment in hiring and promotion Important to develop a "global mindset," take cultures and backgrounds into account when making leadership decisions

Competing Values Framework - Types of Organizational Culture

Clan culture: -Internal focus and integration, value flexibility and discretion -Effectiveness achieved by collaboration, trust, and support Hierarchy: -Internal focus and integration, value stability and control -Formalized and structured work environment -Efficiency, timeliness, reliability Adhocracy: -External focus and differentiation, value flexibility and discretion -creation of new products and services Market: -External focus and differentiation, value stability and control -Competition -Strong desire to deliver results

Judgmental Heuristics (rules of thumb)

Cognitive shortcuts or biases used to simplify decision making Can help managers make decisions that lead to bad decisions (hire clarkson alum because they are clarkson)

Problem Solving Techniques - Decision Support System (DSS)

Computer based interactive systems that help decision makers use data and models to solve unstructured problems Can be structured or unstructured today Improve information processing and decision making within virtual teams

Heuristic Biases

Confirmation Bias Overconfidence Bias Availability Bias Representativeness Bias

Influence Tactics**

Conscious efforts to affect and change a specific behavior in others -Rational Persuasion (use logic) -Inspirational Appeals (use values) -Consultation (ask others for advice) -integration (put them in good mood) -Personal Appeals (friendship) -Exchange (quid pro quo) -Coalition tactics (include people in our circle of influence) -Pressure -Legitimizing Tactics (name dropping someone with authority)

Consensus in Group Decision Making

Consensus is reached when: - all members agree or disagree with the decision or were unable to convince others of their viewpoint -everyone agrees to support the outcome Does not mean all group members agree, but are willing to work towards its success

Strategic Constituencies

Constituency is any group of individuals who have some stake in the organization (i.e. resource providers, customers, or any group whose cooperation is essential for organizational survival or whose lives are significantly affected by the organization)

Types of Innovation - Core vs. Transformational

Core innovations - targeted at existing customers and they rely on optimizing existing products/services for existing customers Transformational innovations - targeted at creating new markets and customers and they rely on developing breakthroughs and inventing things that don't currently exist

Problem Solving Techniques - Delphi Technique

Developed by Rand Corp. for technological forecasting Involves generating ideas or judgement from physically dispersed experts Useful when: Face-to-face discussions are impractical Disagreements and conflict may occur Group domination is an issue Grouthink is likely

Developmental Networks Underlying Mentoring (cont.)

Developmental relationship strength represents quality of relationships among individual and those involved in his or her developmental network. Strong ties are reflective of relationships based on frequent interactions, reciprocity (I help you, you help me), and positive affect. Weak ties are based more on superficial relationships (ex: lunch meetings once a week) Important not to ignore weak ties because they very frequently lead to job opportunities.

Bases of Power and Outcomes

Different bases of power affect job performance, job satisfaction, and turnover: - Expert and referent power have positive effect - Reward and legitimate have slight positive effect - Coercive power has slightly negative effect

Supporting Forces for Innovation

Does the Company Have the Necessary Human Capital? Does the Company Have the Right Organizational Culture and Climate? Does the Company Devote Enough Resources to Innovation? Does the Company Have the Required Structure and Processes?

Drivers and Flow of Organizational Culture

Drivers of culture: Founders values, industry and business environment, national culture, organizational vision, behavior of leaders Drivers of culture -> Organizational culture -> organizational structure and internal processes -. group and social processes -> work attitudes -> outcomes

Practical Application of Organizational Socialization Research

Effective onboarding programs result in increased retention, productivity, and rates of task completion for new hires reinforcing that managers should avoid a haphazard, sink-or-swim approach to organizational socialization. Companies use socialization tactics to promote ethical behavior Managers need to help new hires integrate within the organizational culture and overcome stress associated with working in a new environment. Should use a contingency approach toward organizational socialization - different techniques are appropriate for different people at different times Research shows that diverse employees, particularly those with disabilities, experienced different socialization activities than other newcomers

Increasing Creativity

Effectively manage creative performance behaviors Create environment that encourages risk taking Willingness to give feedback Develop peer environment - group more important than individual Hire great people possessing required person factors Stay connected with innovations happening in academia

Empowerment

Employees are given greater influence, instead of more traditional top-down, command and control, centralized management practices Intended to enhance employee performance, well being, and positive attitude by: - giving employees greater influence - use of decentralized management practices

Types of Organizational Structure - Divisional (Traditional)

Employees are segregated into organization groups based on similar products or services, customers or clients, or geographic regions Sometimes called a product structure or profit center approach. Some organizations have concluded that using a divisional structure can also create silos within the organization.

Levels of Organizational Culture - Espoused Values

Espoused Values: Explicitly stated values and norms that are preferred by organization Enacted Values: Values and norms that are actually exhibited or converted into employee behavior Gaps between espoused values and enacted values - influence employee attitudes and organizational performance

Implications for Managers

Establish positive vision for future Best leaders are not just transformational, they rely on task-oriented and relationship-oriented behaviors and avoid laissez-faire Affects outcomes at individual, group, and organizational levels Leaders work virtually in e-mails, tweets, webinars, and conference calls Ethical transformational leaders enable employees to enhance their self-concepts Unethical transformational leaders select or produce obedient, depended, and compliant followers

Types of Organizational Structure - Hollow (Open)

Example of an open organization Also known as a network structure Designed around a central core of key functions and outsources other functions to obtain them cheaper or faster The more processes that are outsourced, the more "hollow" the organization—and focused on what it does best. Useful when faced with strong price competition and there are enough companies to perform the required outsourced processes.

Types of Organizational Structure - Modular (Open)

Example of an open organization that uses outsourcing Company assembles product parts, components, or modules provided by external contractors Also responsible for quality requirements, timely work, and efficiently combining parts into the final whole. Useful when product modules are allowed it to assemble parts into a working order.

Managerial and Personal Implications of LMX Theory

Expectations - leaders expected to establish high performance expectations Diversity - managers need to be careful that they don't create a homogenous work environment Initiative - important to take positive actions at improving a poor LMX

Rational Model of Decision Making

Explains how managers should make decisions Assumes managers are completely objective and possess complete information (not possible) Decisions demonstrate excellent logic and optimize organization's best interests (not realistic) Four Stages

Leader-member Relations

Extent to which the leader has support, loyalty, and trust of the work group Most important component of situational control Good relations suggest leader can depend on the work group to meet the leader's goals and objectives

Organizational Memory

Facilitates learning by storing knowledge in some type of repository or organizational memory. Not an object - it represents the combined process of "encoding, storing, and retrieving the lessons learned from an organization's history, despite the turnover of personnel"

Learning From Failure

Failure occurs when an activity fails to deliver its expected results or outcomes Mistakes generally feared and penalized - creates environment of risk aversion and reduces innovation Organizations learn from both success and failure - learning is stronger and longer lasting when it is based on failure

Integrated Model of Leadership

Figure 13.1 Demographics (age of leader and follower) + Knowledge and Skills + Task-oriented Traits + Interpersonal Attributes -> Leader Behaviors (Task-oriented + Relationship-oriented + passive + Transformational) + Situational Factors -> Leadership Effectiveness

Organic Organizations

Flexible networks of multitalented individuals who perform a variety of tasks More likely to use horizontal designs or those that open boundaries between organizations. Fewer layers of management and tend to have "squatty" wider structures

Internal Processes

Focuses on "what the organization must excel at" to effectively meet its financial objectives and customers' expectations. A team of researchers identified four critical high-level internal processes that influence productivity, efficiency, quality, safety, and a host of other internal metrics. The processes include organizational activities associated with: -Innovation -Customer service and satisfaction -Operational excellence -Being a good corporate citizen

Mechanisms for Creating Culture Change

Formal Statements: -Organizational philosophy -Mission -Vision -Values -Materials used for recruiting Represent visible artifacts Design of Physical Space: -Physical spacing among people and buildings -Location of office furniture

Personal and Organizational Implications

Foster a broad developmental network because the number and quality of your contacts will influence your career success Look to the consistency between your career goals and the type of developmental network at your disposal Developer's willingness to provide career and psychosocial assistance depends on the protégé/protégée's ability and potential and the quality of the interpersonal relationship. Research also shows quality of the mentoring relationship is higher when the parties have common values and personality characteristics. Become proficient at using social networking tools (Twitter, LinkedIn, and Facebook) Develop mentoring plan. Experts suggest this plan should include the following components: -Identify and prioritize your mentoring goals based on what you want to learn. -Identify people who are skilled or experienced in areas you want to improve. -Determine how best to build a relationship with these "targeted" individuals. -Determine how you can provide value to your mentor - mentoring is a two-way street -Determine when it is time to move on Incorporate mentoring into the organization's leadership development programs.

Intuition Model (Figure 11.2)

Foundations (Expertise and Feelings/Tacit knowledge) -> Processes (Intuitive Processes: - automatic/effortless - Controlled, effortful) -> Forms (Holistic Hunch and Automated Experience:)

Problem Solving Techniques - Brainstorming

Generate multiple ideas and alternatives for solving problems, creating ideas for new products, or removing performance roadblocks, develop action plan to achieve goals

Generic Effectiveness Criteria

Goal Accomplishment Internal Processes Strategic Constituencies Recourse Acquisition

Mixing Effectiveness Criteria: Practical Guidelines

Goal Accomplishment Approach Internal Process Approach Strategic Constituencies Approach Recourse Acquisition Approach

Advantages of Group Decision Making

Greater pool of knowledge Different approaches to a problem Greater commitment to a decision (more people involved = commitment) Better understanding of decision rationale (apart of process = decision understanding) More visible role model

Types of Organizational Structure - Functional (Traditional)

Groups people according to the business functions they perform (i.e. manufacturing, marketing, finance) Manager is responsible for performance of each of these functions and employees identify strongly with their particular function. Some believe that using a functional structure divides people too much, ultimately creating "silos" within the organization detracting from collaboration and sharing best practices across functions.

Leaders and Managers

Have distinct personalities Make different contributions Leaders agitate for change and new approaches Managers advocate for stability and status quo Dynamic tension between the two Both make valuable contributions that are very different

Three Types of Followers

Helpers: show deference to and comply with leadership (don't really care but willing to help) Independents: distance themselves from leadership and show less compliance Rebels: show divergence from leader and least compliant

Four Styles of Decision Making

High Tolerance for Ambiguity - Task and Technical Concerns: Analytical High Tolerance for Ambiguity - People and Social Concerns: Conceptual Low Tolerance for Ambiguity - Task and Technical Concerns: Directive Low Tolerance for Ambiguity - People and Social Concerns: Behavioral

Open Designs

Hollow, modular, or virtual structures. Each relies on leveraging technology and structural flexibility to maximize potential value through outsourcing and external collaboration.

What's a Decision Making Style

How an individual percieves and comprehends stimuli and manner in which he or she responds to the information Based off two dimensions - Value Orientation: individual focuses on either task and technical concerns or people and social concerns when making decisions (people pay attention to their work, but not the people at work or opposite) -Tolerance for Ambiguity: Extent to which a person needs structure or control in his or her life. Some like structure and find ambiguity stressful, while others don't need structure and thrive in uncertain situations

Bad Aspects of Rational Model

Incomplete information: Managers rarely have complete information A-emotional: Process inherently leaves emotions out (which is hard) Politics: Difficult for managers to evaluate alternatives without prejudice Limitations: Time and resources are limited Support: People may be biased and unwilling to implement and support decisions

3. Size

Indicated by the number of employees, volume of sales, amount of assets, and geographical locations. Greater size generally requires more complex organizational designs.

Three Levels of Political Action

Individual - self interests are pursued by the individual Coalition - an informal group bound together pursuing a single issue. When issue is resolved, group disbands Network - loose people-oriented associations seeking support for general self-interests (seeking out Clarkson Alumni). Broader and long-term than coalitions

Degrees of Politicalness

Individuals Highly Political: - run risk of being called self-serving - may lose credibility - may be considered poor team playing Individuals Strictly Non-Political: - may experience slow promotions - may be left out - may be considered poor team players

Match Tactics to Influence Outcomes

Influence tactics can be learned and improved to move resistive individuals to compliance Research shows: - Core influence tactics (rational persuasion, consultation, collaboration, inspirational appeals) are most effective at building commitment - Commitment more likely when influence is something important/enjoyable and based off friendly relationship - Credible people = most persuasive - More apt to accept change when consultation strategy is used - more likely to resist change when managers use legitimating tactic - Schmoozing benefits are short lived. Integration improves short-term - Subtlety with flattery and agreeing with wins long term (forms of integration) and increases likelihood of executives sitting on Board of Directors

Empowering Individuals, Teams, and Organizations

Inputs -> Empowerment -> Outcomes Inputs: Structural Empowerment, Individual differences, job characteristics, managerial support, leadership, organizational support Outcomes: Performance, organizational citizenship behavior, job satisfaction, turnover intentions, reduced stress

The Organization as an Open System (15.2)

Inputs -> Organization -> Outputs Organization Subsystems: Goals and values, technical, structural, psychosocial, managerial at the center - they are interdependent

Transformational Leadership - Four Key Leader Behaviors

Inspirational Motivation: -use of charisma -attractive vision of future Idealized Influence: -Sacraficing for the good of the group -Being a role model with high ethical standards Individualized Consideration: -pay special attention to needs of followers -find ways for people to develop and grow Intellectual Stimulation: -encourage creativity, innovation, and problem-solving

Leaders

Inspire and motivate Manage People Are Decisive Create a Vision

Information Interpretation

Involves making sense of acquired and distributed information. This step is affected by the perceptual biases (Chapter 4) and the decision making biases (Chapter 11)

Symptoms of Grouthink

Invulnerability Inherent Morality (Robber - they have insurance) Rationalization (justify a decision) Stereotyped Views of Opposition (we work really well and that other group surely isn't doing as well as us) Self-censorship (don't speak up) Illusion of unanimity (perception everyone believes the same thing) Peer pressure Mindguards (don't let outside information in that threatens the current group mindset)

Is the Rational Model Realistic?

It's prescriptive, outlining a logical process that managers should use when making decisions - based on the notion that managers optimize when making decisions Practical experience says these conditions are rarely met and assumptions are unrealistic

Creative Outcome Effectiveness

Joint novelty and usefulness (quality) of a product or service as judged by others

How to Prepare for and Deal with Bad News

Key to preparing and dealing with a crisis is creation of a crisis plan that includes: - How information is to be gathered - How to formulate a response - Who will deliver the message and through what media channels -Don't minimize the problem -Be understanding and empathetic Apologies are often necessary in impression management

Uncertainty Triggers Political Action

Lack of trust in boss or coworker boosts uncertainty of undermining you or steal credit Research shows political maneuvering is triggered by 5 common sources of uncertainty: 1. Unclear objectives 2. Vague performance measures 3. Ill defined decision process 4. Strong individual or group competition 5. Any type of change

Mechanisms for Creating Culture Change Cont.

Leader Reactions to Critical Incidents: -People learn and pay attention to emotions exhibited by leaders -Positive emotions spread -Negative emotions travel faster and further Rites and Rituals: -Planned and unplanned activities and ceremonies -Used to celebrate important events or achievements

Takeaways from Behavior Styles Theory

Leader behavior is more important than leader traits when it comes to effectiveness Leader behavior can be systematically improved and developed There is no best style of leadership

Path-Goal Theory

Leader behaviors are effective when employees view them as a source of satisfaction or as paving the way to future satisfaction Leaders do this by: -reducing roadblocks that interfere with goal accomplishment -providing the guidance and support needed by employees -linking meaningful rewards to goal accomplishment

Position Power

Leader has formal power to reward, punish, or obtain compliance from employees

Fiedler's Contingency Model

Leader's style is described as either task-motivated or relationship-motivated Based on the premise that a leader's effectiveness is contingent on whether or not that leader's style fits or matches characteristics of the situation on hand (situational control) To determine individual's leadership style, Fiedler developed the "least preferred coworker" (LPC) scale The scale asks to evaluate a coworker you least enjoy working with on 16 pairs of opposite characteristics and the sources suggest the leader's style

Difference Between Leading and Managing

Leader: -Deals with interpersonal aspect of job -Inspires others, provide emotional support, gets employees to rally around a common goal -Key role in creating vision and strategic plan Manager: -Typically performs functions associated with planning, investing, organizing, and control -Concentrates on getting things done -Charge with implementing the vision and strategic plan

Leader-Member Exchange (LMX) Model of Leadership

Leaders develop unique one-to-one relationships with each of the people reporting to them Called vertical dyad: -In-group exchange creates trust and mutual obligation -Out-group exchange creates formality in expectations and rewards (not good) Forming of vertical dyads is naturally occuring resulting from leader's attempt to delegate and assign work roles LMX Second most researched theory of leadership over past two decades Very different because it focuses on quality of relationships between managers and subordinates as opposed to behaviors or traits Does not assume that leaders treat all employees the same way

Effective Leadership and Effective Management

Leadership and management are distinct, yet complementary Effective leadership: produces useful change and creates a level of uncertainty Effective management: controls complexity by reducing uncertainty and stabilizes the organization Effective leadership + good management = healthy organization

Takeaways from Fiedler's Model

Leadership effectiveness goes beyond traits and behaviors Organizations should hire or promote people whose leadership styles match situational demands Leaders need to modify their style to fit a situation

Path-Goal Theory Diagram

Left: Leader Behaviors to Right: Leadership Effectiveness Top: Employee Characteristics plus Environmental Factors Figure 13.3

Decision Tree to Make Ethical Decisions

Legal or Illegal? Maximize shareholder value? Is it ethical/would it be ethical not to take action? (Ex: Closing a plant)

Five Bases of Power (based off perception)

Legitimate Power - obtain compliance because of formal authority Reward Power - Obtain compliance by providing or granting rewards Coercive Power - Make threats of punishment and deliver actual punishment Expert Power - Have valued knowledge or information over those who need the knowledge or information Referent Power - Using one's personal characteristics and social relationships to obtain compliance

Principles of Persuasion

Liking - people are likable and like themselves Reciprocity - treat others the way you want to be treated Social Proof - if everyone is buying it, more likely to buy it Consistency - consistent with statements Authority - show you know what you are doing or talking about Scarcity - people want what they can't have (use in combination rather than separate for greatest impact)

Servant-Leader Characteristics

Listening, empathy, healing, awareness, persuasion, conceptual thinking, foresight, stewardship, commitment to growth of people, building community

Availability Bias

Making a decision based off readily available information leading us to overestimate the importance of information recently seen or thought about (Buying stock in corning after 911 attacks and you know the market will bounce back)

Favorable Upward Impression Management Tactics

Moderate amount of upward impression management is necessity for average employee (impressing boss) 3 Categories of upward management techniques: -Job focused -Supervisor Focused -Self Focused

Normative Model (Bounded Rationality)

Notion that decisions are bounded or restricted by a variety of constraints when making decisions Include personal characteristics or resources that reduce rational decision making - Personal characteristics (limited mental capacity, time constraints) -Internal resources (human and social capital, financial resources, technology, equipment, internal processes/systems) -External resources (organization can't directly control - labor market, economy, capital, gov ploicies)

How Bad Impressions Happen

Obvious ones: don't cheat, lie, steal Many make bad impressions without knowing: -Doing only the minimum -Having a negative mindset -Overcommitting -Taking no initiative -Waiting until the last minute to deliver bad new

Phase 1: Anticipatory Socialization

Occurs before an individual joins an organization Information learned about careers and organizations (research companies at career fair) Learned from: -Current employees -Social media -Internet

Psychological Empowerment

Occurs when employees feel a sense of: - meaning - your work matters and goals align - competence - personal evaluation of your ability to do a job - self determination - you have control over your work and its outcomes - impact at work - you make a difference Relates to self-efficacy and focuses on cognitive states

Knowledge Integration

Occurs when information is integrated across different sources leading to shared understanding among individuals and groups

The Learning Organization

One that proactively creates, acquires, and transfers knowledge and changes its behavior on the basis of new knowledge and insights Important to understand how organizations learn - learning is essential to an organization's continuous improvement and renewal over time. Organizational learning - positively associated with organizational performance and innovation. Researchers show that organizations learn by using five independent sub-processes: -Information acquisition -Information distribution -Information interpretation -Knowledge integration -Organizational memory

Mechanisms for Creating Culture Change Cont.

Organizational Activities and Processes: -Leaders pay attention to those activities they can measure and control -Sends message to employees about acceptable norms Stories, Legends, or Myths: -Powerful way to send messages about values and behaviors that are desired

Conclusions about Organizational Culture

Organizational culture is related to measures of organizational effectiveness. - an organization's culture can be a source of competitive advantage. Employees more satisfied and committed to clan cultures (flexibility over control), suggesting that employees prefer to work in organizations that value flexibility over stability and control and those that are more concerned with satisfying employees' needs than customer or shareholder desires. Innovation and quality can be increased by building characteristics associated with clan, adhocracy, and market cultures into the organization - use a combination of all three types of culture to produce these outcomes. Organization's financial performance is not strongly related to organizational culture - can't increase financial performance immediately by changing culture, but changes in culture can improve competitive advantage, which then results in financial benefits. Companies with market cultures tend to have more positive organizational outcomes.

Contingency Approach to Organizational Design

Organizations more effective when they are structured to fit demands of the situation (it depends) One of the first design considerations is whether the organization would flourish with centralized or decentralized decision making Centralized (decisions lie in top organization) vs. decentralized (decision shared among employees) decision making underscores the difference between mechanistic and organic organizations.

Types of Virtual Structures - Internal Virtual Structure

Pertain to work arrangements used to coordinate geographically dispersed employees. Relies on the use of information technology, but also requires managers to consider three key issues. -Do I have the right people? -> Not everyone is suited to work virtually. Essential for managers to consider the personal characteristics, needs, and values of people who might work virtually. -How often should people get together? -> No clear answer to this question. Recommendation is to use a contingency approach. More frequent contact is needed at the start of a project and regular milestone meetings should be held online. -What type of technology should be used to coordinate activities? -> The choice depends on the skills and resources at hand.

Failure, Blame, and Politics

Politicking often occurs when things don't work out and there is underperformance How one responds to underperformance is very important Blame for failures assigned to: -Others -Oneself -Blame can be denied Tenancies are stable, just like personality and many other individual differences

Position v. Personal Power

Position Power (associated with job) Includes: - Legitimate Power - Reward Power - Coercive Power Personal Power (independent of job) Includes : - Expert Power - Referent Power

Four Behaviors Constituting Creative Performance

Problem formulation/definition Preparation/information gathering - creativity involves a convergence between tacit and explicit knowledge Idea generation - brainstorming idea evaluation/validation - select most creative option

Information Distribution

Processes or systems that people, groups, or organizational units use to share information among themselves

What Leaders Want From Followers

Productivity Reliability Honesty Cooperativeness Proactiveness Flexibility

Open Boundary Structure Pros & Cons

Pros: Generate superior returns Focus on what they do best Taps into people's specialties Cons: Give up expertise and control when outsourced Have to get results from people without having direct authority Need partners that can be trusted

Horizontal Structure Pros & Cons

Pros: Improves communication and coordination Teams can come up creative solutions Develop new products faster Knowledge sharing Cons: Lines of authority less clear Works when specialization is not important Requires employees to rise to the challenges of empowerment

Divisional Structure Pros & Cons

Pros: Increased focus on customers and products Flexibility in decision making Cons: Divisions may focus on their own customer groups or products and exclude rest of organization

Functional Structure Pros & Cons

Pros: Saves money Easy to apply quality standards Cons: Works best in a stable environment, not applicable today

Support a Decision Pros and Cons

Pros: Convince audience the organization is on a sound course of action in response to a complex decision Cons: Stifle employee involvement and input because people believe management is ignoring evidence and does what it wants

Pros and Cons Using Heuristics

Pros: Shortcuts are derived from past experience, make decisions easier for managers Cons: Lead to bad decisions, especially during time constraints

Good Aspects of Rational Model

Quality: Decision quality enhanced - follow logically from expertise Transparency: Makes reasoning behind a decision transparent Responsibility: Make public, less self-serving, encourages more responsible decisions

Types of Decision Making Models

Rational Nonrational

The Trait Analysis Cont.

Recent meta-analysis techniques discovered the following attributes: Positive Task Oriented Traits: -Intelligence -Concienciousness -Open to experience -Emotional stability Positive/Negative Interpersonal Attributes: -Extraversion -Agreeableness (like working with people) -Communication skills -Emotional intelligence -Narcissism -Machiavelliansim -Psychopathy

Developmental Networks Underlying Mentoring (cont.)

Receptive developmental network: Composed of a few weak ties from one social system (ex: employer or a professional association). -The single oval around D1 and D2 indicates two developers who come from one social system. Traditional network: contains a few strong ties between an employee and developers that all come from one social system - like creating a strong developmental relationship with your boss and one colleague at work. An entrepreneurial network: (the strongest type of developmental network) made up of strong ties among several developers (D1-D4) who come from four different social systems (developing strong ties with your boss and one internal colleague, but also developing a good network with people from other organizations) Opportunistic network: associated with having weak ties with multiple developers from different social systems

Developmental Networks Underlying Mentoring (Figure 14.6)

Receptive: Low range developmental relationship diversity, weak ties to developmental relationship strength Traditional: Low range developmental relationship diversity, strong ties to developmental relationship strength Opportunistic: High range developmental relationship diversity, weak ties to developmental relationship strength Entrepreneurial: High range developmental relationship diversity, strong ties to developmental relationship strength

4. Human resources

Refers to the level of employees' human capital. Highly skilled employees prefer freedom, autonomy, and empowerment. Flexible structures that allow for decentralized decision making - good design choice for organizations employing large segment of highly skilled and professional employees.

EBDM - Big Data

Reflects vast quantity of data available for decision making used to create competitive advantage Encompasses the collection, sorting, and analysis of information and techniques to do so Creates value by: - Making information transparent and usable -Allows for the measurement and collection of performance information to enhance productivity -Allow for more narrow segmentation of customers (when/where are customers buying a product) -Being used to develop new products

Resource Acquisition

Relates to inputs rather than outputs. Effectiveness is measured by the ability to acquire necessary factors of production (i.e. raw materials, labor, capital, and managerial and technical expertise)

Model of Transformation Leadership

Represents a broad type of leader behavior that goes beyond task and relational leadership Started by Max Weber in 1940s studying pros and cons of charismatic leadership Charisma: form of interpersonal attraction that inspires acceptance, devotion, and enthusiasm Transformational leaders transform follower to pursue organizational goals over self-interests by appealing to people's values, motives, and personal identity

2. Technology

Represents information technology, equipment, tools, and processes needed to transform inputs to outputs. Enables products and serviced to be created and distributed implying that technology being used by a company is a key consideration in deciding the best way to organize in pursuit of strategic goals.

Intuition Model Summary

Represents judgements, insights, decisions that come to mind Intuition and rationality are complementary Holistic Hunch: Decision based off subconscious integration of stored memory (feels right) Automated Experience: Choice based off familiar situation (Ex: Going to same car dealer) Expertise: Individuals combined explicit knowledge Tacit Knowledge: Information gained through experience (how someone behaves)

Phase 3: Change and Acquisition

Requires employees to master important tasks and roles and to adjust to their work group's values and norms. Will occur when employees have a clear understanding about their roles and they are effectively integrated within the work unit. Success during this phase is enhanced when companies take a long-term approach toward socialization.

Individual Reactions to Power

Resistance - people can be indifferent, passive-aggressive, or actively resist to undermine or sabotage Compliance - those that do what is required of them, but nothing more Commitment - They believe in the cause and will go above and beyond to assure success

Mechanistic Organizations

Rigid bureaucracies with strict rules, narrowly defined tasks, and top-down communication One of the traditional organization designs described earlier and a hierarchical culture Structure will be steeped in bureaucracy with layers of middle management resulting in a taller and narrower structure "Orderliness" of structure expected to produce reliability and consistency in internal processes resulting in higher efficiency, quality, and timeliness. Important to note - mechanistic does not mean that an organization should not be responsive to employee and customer feedback.

Phase 2: Encounter

Second phase begins when employment contract has been signed or first day on the job. During the encounter phase employees come to learn what the organization is really like Many companies use a combination of orientation and training programs to socialize employees during the encounter phase. Onboarding is one such technique. -Onboarding programs help employees to integrate, assimilate, and transition to new jobs by making them familiar with corporate policies, procedures, culture, and politics and by clarifying work-role expectations and responsibilities. (ex: J&J with Creto) There is no set way to onboard a new employee.

The Seeds of Innovation

Seeds of innovation are the starting points for organizational innovation: -Hard work in a specific direction -Hard work with direction change -Curiosity and experimentation -Wealth and money -Necessity -Combination of seeds

Confirmation Bias

Seeks information that supports the decision while discounting information that does not

Four Functions of Organizational Culture

Sense making device + organizational identity + collective commitment + social system stability -> organizational culture

Leadership Characteristics

Setting directions for organization Using communication to align people with that direction Motivating people to action through empowerment and basic need gratification (people issues, visionary behaviors, communication)

Making a Good Impression

Since you only have one chance to make a first impression: -Set an intention -Consider your ornaments (how you look) -Remember your body speaks -Bust bad moods and bad days -Be interested to be interesting

Mechanisms for Creating Culture Change Cont.

Slogans, Language, Acronyms, and Sayings: -Easy to remember and easy to repeat Role Modeling, Training, Coaching: -Provide an in-depth introduction about organizational values and basic underlying assumptions Explicit Rewards, Status Symbols: -Strong impact on employees due to its highly visible and meaningful nature -Strongest way to embed culture

Matrix Structure (continued)

Structure can provide a reasonable counterbalance among important stakeholders. Application of a matrix structure is not easy - bad reputation for being too complex and confusing. Takes much more collaboration and integration to effectively implement this structure. Increasingly is being used by companies expanding into international markets.

Contingency Design

Structures: Functional Divisional Matrix Horizontal Open Boundary (Hollow, Modular, Virtual)

Drawbacks of Intuition

Subject to biases associated with rational decision making May be difficult convincing others that intuitive is better than rational

Organizational Innovation

The creation of something new that makes money and finds a pathway to the consumer More likely to occur when organizations have the proper supporting forces (don't want a punishing kind of culture) Differs from: -Invention - the creation of something new -Creativity - a process of developing something new or unique -Integration - actions associated with getting multiple people, units, departments, functions, or sites to work together in pursuit of a goal, idea, or project.

Organizational Culture

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 Four characteristics of organizational culture: -Shared concept -Learned over time -Influences our behavior at work -Impacts outcomes at multiple levels

Organizational Design

The structures of accountability and responsibility used to develop and implement strategies Includes the human resource practices and information and business processes that activate those structures (HR practices and HR labor market strategies) Organizations are more effective and more successful when their structure supports the execution of corporate strategies. Many managers underestimate the complexity of this task (lining up structure with strategy)

Improving Organizational Learning

This can be accomplished by: -Improving on the five steps for organizational learning (better job environmental scanning and distributing learning) -Realizing leader behavior and organizational culture drive organizational learning (leader that doesn't care about learning has an effect on his or her subordinates)

Effective Leadership

Three Issues: 1. Content of the Evaluation: "What criteria are being used to assess effectiveness." Effectiveness can entail task performance, quality, customer satisfaction, sales, employee satisfaction, turnover, evaluation of leadership 2. Level of Evaluation: "At what level are the criteria being measured." Measured at the individual, group or organizational levels. Evaluations at different levels can produce different conclusions 3. The Rater's Perspective: "Who is doing the evaluation." Can be made by different people or groups, and their view of effective leadership may vary (ex: manager perceived as effective by direct report but not by the boss)

Increasing Influence

Tools to help influence others: -Know what you want and believe you can get it -credibility -trustworthiness -empathy -strong communication skills -be inspirational -be open minded

Categories of Organizational Design

Traditional Designs Horizontal Designs Open Designs

Traditional Designs

Traditional approach that has functional, divisional, and/or matrix structures. Each of these structures relies on a vertical hierarchy and attempts to define clear departmental boundaries and reporting relationships.

How to Be a Better Follower

Understand your boss Understand your style, needs, goals, expectations, strengths, and weaknesses Build on mutual strengths and adjust or accommodate the leader's different style, goals, expectations, weaknesses Recognize conflict Enhance success

Issues with Phase 1: Anticipatory Socialization

Unrealistic expectations of nature of the work, pay, and promotions are often formulated during Phase 1. Use of a Realistic Job Preview (RJP) can help with the problems associated with this. -Realistic job preview (RJP) involves giving recruits a realistic idea of what lies ahead by presenting both positive and negative aspects of the job. -Employees with unrealistic expectations are more likely to quit their jobs in the future so organizations may want to use RJP's. Research revealed that RJPs were related to higher performance and to lower attrition from the recruitment process. Results also demonstrated that RJPs lowered job applicants' initial expectations and led to lower turnover among those applicants who were hired.

Takeaways from Path-Goal Theory

Use more than one leadership style Help employees achieve their goals by removing obstacles and coach employees along the way Modify leadership style to fit various employee (ability, experience) and environmental (task characteristics of autonomy, variety, adn significance) factors are relevant contingency factors

Types of Virtual Structures - Networked Virtual Structure

Used to establish a collaborative inter-organizational network of independent firms or individuals to create a virtual entity. Networked individuals or companies join forces because they possess core competencies needed for a project or product. Variety of information technology used to coordinate the efforts of the different members within the network.

Hindsight Bias

When knowledge of an outcome influences our belief about the probability we could have predicted the outcome earlier Overconfidence in foresight leads to bad decisions

When is An Apology Necessary?

When these conditions are present: -Apologizing will serve as an important purpose (Company realizes this is a big issue - J&J) -The offense is of serious consequence (Ex: loss of life) - Appropriate to assume responsibility - No one else can get the job done (Don't wait for government involvement) - Cost of saying something is likely to be lower than the cost of being silent (saying no comment when a reporter comes up to you is hurtful)

Horizontal Design

Work hard to flatten hierarchy and organize people around specific segments of the workflow (team or process structure) Sometimes called a team or process structure - relies on horizontal workflow and attempts to dissolve departmental boundaries and reporting relationships

Mechanisms for Creating Culture Change Cont.

Workflow and Organizational Structure: -Hierarchical structure vs. flatter organizations -Reducing the number of organizational layers is an attempt to empower employees and increase employee involvement Organizational Systems, Procedures and Goals: -Companies are increasingly using electronic networks as a tool to promote different types of cultures. -How a company handles basic HR duties—for recruitment, selection, development, promotion, layoffs, and retirement of people—defines and perpetuates a company culture.