Management Chapters 5-8

structure

Changing structure includes any change in structural variables such as reporting relationships, coordination mechanisms, employee empowerment, or job redesign.

technology

Changing technology encompasses modifications in the way work is performed or the methods and equipment that are used.

Business promoting positive social change

Corporate philanthropy, employee volunteering efforts, and whistle blower

Social Responsibility

a business's intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society

role conflicts

Role conflicts create expectations that may be hard to reconcile or satisfy. When you take a job that you do not like and you are not suted to be in it. • An account in a lawyer

Why is managing workplace diversity so important?

people management, organizational performance, and strategic

Social Obligation

when a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities

Strategic Plans

(long term, directional, onetime use): plans that apply to the entire organization and establish the organization's overall goals

Cultural Variables

- Acceptance of ambiguity - Tolerance of the impractical - Low external controls - Tolerance of risks - Tolerance of conflict - Focus on ends - Open-system focus - Positive feedback

Creating a Culture for Change

- The fact that an organization's culture is made up of relatively stable and permanent characteristics tend to make it very resistant to change. o A culture takes a long time to form, and once established it tends to become entrenched. Strong cultures are particularly resistant to change because employees have become so committed to them.

Disruptive innovation

: innovations in products, services, or processes that radically change an industry's rules of the game • Although the term "disruptive innovation" is relatively new, the concept isn't. For instance, economist Joseph Shumpeter used the term "creative destruction" more than 70 years ago to describe how capitalism builds on processes that destroy old technologies but replaces them with new and better ones. That, in essence, is disruptive innovation.

changing employee attitudes

A recent survey revealed that the attitudes of employees at organizations going through significant changes tend to be less favorable than at more stable companies. But, not all employees in changing organizations have less favorable attitudes. Those who prefer stability are less likely to try new technology or embrace change than employees who are open to change.

Types of Diversity Found in the Workplace

Age Gender Race and Ethnicity Disability/Abilities Religion LGBT Other

1967 (amended in 1978) Age Discrimination in Employment Act

Age Discrimination in Employment Act Prohibits discrimination against employees 40 years and older

Negotiation

Negotiation involves exchanging something of value for an agreement to lessen the resistance to the change effort. This resistance technique may be quite useful when the resistance comes from a powerful source.

internal conflict

New organizational strategy Change in composition of workforce New equipment Changing employee attitudes

reduce uncertainty

Next, planning reduces uncertainty by forcing managers to look ahead, anticipate change, consider the impact of change, and develop appropriate responses. Although planning won't eliminate uncertainty, managers plan so they can respond effectively.

organizational structure

Organization structure can increase stress. Excessive rules and an employee's lack of opportunity to participate in decisions that affect him or her are examples of structural variables that might be potential sources of stress.

organizational leadership

Organizational leadership represents the supervisory style of the organization's managers. Some managers create a culture characterized by tension, fear, and anxiety.

role ambiguity

Role ambiguity is created when role expectations are not clearly understood and the employee is not sure what he or she is to do. You have no idea what you are doing • You get in charge of making snow cones but you have never had training for snow cones

role overload

Role overload is experienced when the employee is expected to do more than time permits. You are in the right job but you don't have enough staff You have to do more than you thought and your workload went from 100% to 300%. • You went from 10 customers a week to 50 customers a week

An Organization's Structural Design

Those structures that minimize ambiguity and uncertainty with formal rules and regulations and those that continuously remind employees of what is ethical are more likely to encourage ethical behavior.

Change in composition

Through the decades, the U.S. workforce has become more diverse. A key challenge entails orchestrating these differences to maintain an inclusive culture that focuses on productivity.

Values

Two individual characteristics—values and personality—play a role in determining whether a person behaves ethically. Each person comes to an organization with a relatively entrenched set of personal values, which represent basic convictions about what is right and wrong. Our values develop from a young age based on what we see and hear from parents, teachers, friends, and others.

Ego Strength

Two personality variables have been found to influence an individual's actions according to his or her beliefs about what is right or wrong: ego strength and locus of control. Ego strength measures the strength of a person's convictions. People with high ego strength are likely to resist impulses to act unethically and instead follow their convictions.

external conflict

Changing consumer needs and wants New governmental laws Changing technology Economic changes

People

Changing people refers to changes in attitudes, expectations, perceptions, and behavior of individuals or groups.

length of future commitments

Commitment concept: plans should extend far enough to meet those commitments made when the plans were developed.

Types of Discrimination

Discrimination policies or practices, sexual harassment, intimidation, mockery and insults, exclusion, and incivility

Education and communication

Education and communication can help reduce resistance to change by helping employees see the logic of the change effort. This technique, of course, assumes that much of the resistance lies in misinformation or poor communication

Facilitation and support

Facilitation and support involve helping employees deal with the fear and anxiety associated with the change effort. This help may include employee counseling, therapy, new skills training, or a short paid leave of absence.

True or False: The worldwide median age was 27 in 2015.

False

1993 Family and Medical Leave Act

Family and Medical Leave Act Gives employees in organizations with 50 or more employees up to 12 weeks of unpaid leave each year for family or medical reasons

Coercion

Finally, coercion can be used to deal with resistance to change. Coercion involves the use of direct threats or force against the resisters.

establishes the goals and standards for controlling

Finally, planning establishes the goals or standards used in controlling. When managers plan, they develop goals and plans. When they control, they see whether the plans have been carried out and the goals met.

New governmental laws

Government laws require changes in how managers must conduct business. Five broad categories of governmental laws include truth- in-advertising, employment and labor fair practices, environmental protection, privacy, and safety and health.

interpersonal demands

Interpersonal demands are pressures created by other employees. Lack of social support from colleagues and poor interpersonal relationships can cause considerable stress, especially among employees with a high social need.

How can Organizations go Green?

Legal (light green) approach (aka social obligation Market approach Stakeholder approach activist approach (dark green)

2009 Lilly Ledbetter Fair Pay Act

Lilly Ledbetter Fair Pay Act Changes the statue of limitations on pay discrimination to 180 days from each paycheck

Characteristics in leading change

Link the present and the future. Think of work as more than an extension of the past; think about future opportunities and issues and factor them into today's decisions. Make learning a way of life. Change-friendly organizations excel at knowledge sharing and management. Actively support and encourage day-to-day improvements and changes. Successful change can come from the small changes as well as the big ones. Ensure diverse teams. Diversity ensures that things won't be done like they've always been done. Encourage mavericks. Because their ideas and approaches are outside the mainstream, mavericks can help bring about radical change. Shelter breakthroughs. Change-friendly organizations have found ways to protect those breakthrough ideas. Integrate technology. Use technology to implement changes. Build and deepen trust. People are more likely to support changes when the organization's culture is trusting and managers have credibility and integrity. Couple permanence with perpetual change. Because change is the only constant, companies need to figure out how to protect their core strengths during times of change. Support an entrepreneurial mindset. Many younger employees bring a more entrepreneurial mindset to organizations and can serve as catalysts for radical change.

Economic changes

Managers must respond to changes in economic forces. Consider the impact of an economic recession. According to the U.S. Bureau of Labor Statistics, recessions are characterized by a general slowdown in economic activity, a downturn in the business cycle, and a reduction in the amount of goods and services produced and sold. The so-called Great Recession (2007-2009) was considered to be one of the more severe recessions felt worldwide.

Manipulation and co-optation

Manipulation and co-optation refer to covert attempts to influence others about the change. It may involve distorting facts to make the change appear more attractive.

New equipment

More and more companies are using 3D printers to create product prototypes. Technological changes are particularly making their marks on health care. These technologies include advances in genomics, biotechnology, robotics, connected care, and artificial intelligence. Advances in robotic technology, for example, is changing how surgeons perform some surgical procedures.

Well-Written Goals

Written in terms of outcomes rather than actions Measurable and quantifiable Clear as to a time frame Challenging yet attainable Written down Communicated to all necessary organizational members

Specific Plans

a one-time plan specifically designed to meet the needs of a unique situation

Employee Volunteering Efforts

a popular way for businesses to be involved in promoting social change o Employee volunteering is another popular way for businesses to be involved in promoting social change. For instance, Dow Corning sent a small team of employees to rural India to help women "examine stitchery and figure out prices for garments to be sold in local markets." Molson-Coors' 11-member executive team spent a full day at their annual team-building retreat building a house in Las Vegas with Habitat for Humanity. PricewaterhouseCoopers employees renovated an abandoned school in Newark, New Jersey. Every Wachovia employee is given six paid days off from work each year to volunteer in his or her community.

Management by objectives (MBO)

a process of setting mutually agreed upon goals and using those goals to evaluate employee performance o MBO programs have four elements: goal specificity, participative decision making, an explicit time period, and performance feedback. Instead of using goals to make sure employees are doing what they're supposed to be doing, MBO uses goals to motivate them as well. The appeal is that it focuses on employees working to accomplish goals they've had a hand in setting.

Skunk works

a small group within a large organization, given a high degree of autonomy and unhampered by corporate bureaucracy, whose mission is to develop a project primarily for the sake of radical innovation

Bias

a tendency or preference toward a particular perspective or ideology - Preference towards a particular ideology - Can lead to inaccurate judgements/attitudes - Bias is a term that describes a tendency or preference toward a particular perspective or ideology. It's generally seen as a "one-sided" perspective. Our personal biases cause us to have preconceived opinions about people or things. Such precon

Creativity

ability to combine ideas in a quine way or to make unusual associations between ideas

Proactive

acting in advance of a situation. o We can find these same patterns in organizations. The civil aviation authorities illustrate a reactive change process in direct response to the Germanwings crash, and the Ford Motor Company's experiments describe a proactive change process.

Strategic goals

aligned w/mission ex; no child goes to bed hungry (non profit)

Traditional goal-setting

an approach to setting goals in which top managers set goals that then flow down through the organization and become subgoals for each organizational area o Turning broad strategic goals into departmental, team, and individual goals can be a di cult and frustrating process. o Another problem with traditional goal-setting is that when top managers define the organization's goals in broad terms—such as achieving "sufficient" profits or increasing "market leadership"—these ambiguous goals have to be made more specific as they ow down through the organization. Managers at each level define the goals and apply their own interpretations and biases as they make them more specific. However, what often happens is that clarity is lost as the goals make their way down from the top of the organization to lower levels.

Social Entrepreneurship

an individual or organization that seeks out opportunities to improve society by using practical, innovative, and sustainable approaches example: - Social entrepreneurs want to make the world a better place and have a driving passion to make that happen. For example, Microsoft Corporation announced that it would donate $1 billion in cloud services to nonprofits and university researchers. Microsoft's goal is to provide the same computing tools that have allowed business firms to become more agile and tackle substantial technical challenges. Also, social entrepreneurs use creativity and ingenuity to solve problems. For instance, Seattle-based PATH (Program for Appropriate Technology in Health) is an international nonprofit organization that uses low-cost technology to provide needed health-care solutions for poor, developing countries.

Means-Ends Chain

an integrated network of goals in which the accomplishment of goals at one level serves as the means for achieving the goals, or ends, at the next level

Organizational Change

any alteration of people, structure, or technology in an organization

Corporate Philanthropy

can be an effective way for companies to address societal problems o Corporate philanthropy can be an effective way for companies to address societal problems. For instance, the breast cancer "pink" campaign and the global AIDS Red campaign (started by Bono) are ways that companies support social causes.

Goals (objectives)

desired outcomes or targets Goals (objectives) are desired outcomes or targets. They guide management decisions and form the criterion against which work results are measured. That's why they're often described as the essential elements of planning. You have to know the desired target or outcome before you can establish plans for reaching it.

Deep-Level Diversity

differences in values, personality, and work preference. *most important one - differences in values, personality, and work preferences—becomes more important. These deep-level differences can affect the way people view organizational work rewards, communicate, react to leaders, negotiate, and generally behave at work. - You cannot see these with the naked eye

Other types of diversity

diversity refers to any dissimilarities or differences that might be present in a workplace • Diversity refers to any dissimilarities or differences that might be present in a workplace. Other types of workplace diversity that managers might confront and have to deal with include socioeconomic background (social class and income-related factors), team members from different functional areas or organizational units, physical attractiveness, obesity/thinness, job seniority, or intellectual abilities.

plans

documents that outline how goals are going to be met o Plans are documents that outline how goals are going to be met. They usually include resource allocations, schedules, and other necessary actions to accomplish the goals. As managers plan, they develop both goals and plans. Dreams - Plans - Actions "does not" = Reality However, Dreams + Plans + Actions "does" = Reality

Techniques for Reducing Resistance to Change?

education and communication, participation, facilitation, negotiation, manipulation and co-option, and coercion

Ethics in an international context

ethical standards are not universal, foreign corrupt practices act, and united nations global contract

What is planning?

management function that involves setting goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate work activities

Type A Personality

people who have a chronic sense of urgency and an excessive competitive drive o Until quite recently, it was believed that Type As were more likely to experience stress on and o the job. A closer analysis of the evidence, however, has produced new conclusions. Studies show that only the hostility and anger associated with Type A behavior are actually associated with the negative effects of stress. And Type Bs are just as susceptible to the same anxiety-producing elements.

Challenges in managing diversity

personal bias, prejudice, stereotyping, discrimination, glass ceiling

short terms plans

plans covering one year or less

operational plans

plans that encompass a particular operational area of the organization

Stages of Moral Development

preconventional, conventional, principle

Why do managers plan?

provides direction, reduce uncertainty, minimizes waste and redundancy, establishes the goals and standards for controlling

Reactive

reacting to a situation that has occurred.

financial goals

related to financial performance ex; achieve a 10% sales growth

Issue Intensity

six factors that suggest: o The larger the number of people harmed o The more agreement that the action is wrong o The greater the likelihood that the action will cause harm o The more immediatley the consequences of the actions will be felt o The closer the person feels to the victim o The more concentrated the effect of the action on the victim(s)

Sustaining Innovation

small and incremental changes in established products rather than dramatic breakthroughs • In practice, disruptive innovation has been around for centuries. Vanderbilt's railroads disrupted the sailing-ship business. Alexander Bell's telephone rang the death-knell for Western Union's telegraphy. Ford and other automobile builders destroyed horse-drawn-buggy manufacturers.

Change Agent

someone who acts as a catalyst and assumes the responsibility for managing the change process. - Change agents can be a manager within the organization but could also be a nonmanager—for example, a change specialist from the human resources department or even an outside consultant.

What causes stress?

take demands role demands- Role demands relate to pressures placed on an employee as a function of the particular role he or she plays in the organization. interpersonal demands organization structure Organizational leadership

Innovation

taking creative ideas and turning them into useful products or work methods

Employers' Fears about Disabled Workers

they think highering someone will mean they will be more expensive and lower profit margins, think that they lack job skills and experience, potential disciplinary action issues, and that it is a higher cost to accommodate them

Individual Characteristics

values, ego strength, locus of control

technique: manipulation and co-optation

when used: When a powerful group's endorsement is needed advantages: Inexpensive, easy way to gain support disadvantages: Can back re, causing change agent to lose credibility

technique: coercion

when used: When a powerful group's endorsement is needed I advantage: inexpensive, easy way to gain support disadvantage: May be illegal; may undermine change agent's credibility

technique: negotiation

when used: When resistance comes from a powerful group advantage: Can "buy" commitment disadvantage: Potentially high cost; opens doors for others to apply pressure too

technique: education and communication

when used: When resistance is due to misinformation advantage: Clear up misunderstandings disadvantage: May not work when mutual trust and credibility are lacking

technique: facilitation and support

when used: When resisters are fearful and anxiety ridden advantage: Can facilitate needed adjustments disadvantage: Expensive; no guarantee of success

technique: participation

When used: when resisters have the expertise to make a contribution advantage: Increase involvement and acceptance disadvantage: Time-consuming; has potential for a poor solution

digital tools

- Business intelligence: data that managers can use to make more effective strategic decisions - Digital tools: technology, systems, or software that allow the user to collect, visualize, understand, or analyze data o Increasingly, we're finding that companies are making strategic changes based on data, as distinct from day-to-day decisions. These leaders understand the importance of business intelligence in their planning process. Sources of business intelligence are company records, industry trends, and competitors' financial (for example, profits) or market (for example, market penetration) data. o How do managers make sense of vast amounts of data? Managers can use digital tools to make sense of business intelligence data. Digital tools refer to technology, systems, or software that allow the user to collect, visualize, understand, or analyze data. Specific examples of digital tools include software such as Microsoft Excel, online services such as Google Analytics, or networks that connect computers and people, such as social media.

Understanding the Situational Factors

- Conditions that facilitate change: o Dramatic crisis occurs o Leadership changes hands o Culture is weak

Developing Plans

- Contingency factors in planning: o Organizational Level o Degree of environmental uncertainty o Length of future commitments

Three Prevalent Digital Tools

- Data visualization tools - Cloud computing: refers to storing and accessing data on the Internet rather than on a computer's hard drive or a company's network - Internet of things (IoT): allows everyday "things to generate and store and share data across the internet. o Tableau is an example of a company that provides software tools and interactive dashboards that allow users to generate useful business insights through the analysis and visualization of data. o The cloud is just a metaphor for the Internet. o In the Future Vision feature in Chapter 7, we described the Internet of Things (IoT), which allows everyday "things" to generate and store data about their own performance and share that information across the Internet.

Types of Change: Technology

- New equipment, tools, or methods o Assembly workers in Ford's Valencia, Spain, manufacturing facility wear a small device on their wrists that enables them to ensure that vehicle specifications are correct. According to Ford of Europe's manufacturing vice president, "The ability to simply consult a smartphone screen to check any aspect of a vehicle's quality and specification helps to guarantee highest levels of product quality, and improves work processes and manufacturing efficienc - Automation o Automation is a technological change that replaces certain tasks done by people with tasks done by machines. Robotic technology has been incorporated in many business settings. - Computerization o The most visible technological changes have come from computerization. Most organizations have sophisticated information systems.

How can managers plan effectively in dynamic environments?

- Develop plans that are specific but flexible - Keep planning even when the environment is uncertain - Allow lower organizational levels to set goals and develop plans o In an uncertain environment, managers should develop plans that are specific, but flexible. Although this may seem contradictory, it's not. To be useful, plans need some specificity, but the plans should not be set in stone. Managers need to recognize that planning is an ongoing process. The plans serve as a road map, although the destination may change due to dynamic market conditions. o Keep in mind, also, that even when the environment is highly uncertain, it's important to continue formal planning in order to see any effect on organizational performance. It's the persistence in planning that contributes to significant performance improvement. Why? It seems that, as with most activities, managers "learn to plan," and the quality of their planning improves when they continue to do it. o Finally, make the organizational hierarchy flatter to effectively plan in dynamic environments. This means allowing lower organizational levels to set goals and develop plans because there's little time for goals and plans to ow down from the top. Managers should teach their employees how to set goals and to plan and then trust them to do it.

Why is disruptive innovation important?

- Disruptive innovations are a threat to many established businesses, and responding with sustaining innovations isn't enough. - Companies that are successful tend to grow. With growth comes expanded size. And as we'll describe, large size frequently makes successful companies vulnerable to disruptive competitors. - Large organizations create rules and regulations to standardize operations. The result is that these successful organizations establish entrenched cultures and values that, on one hand, guide employees, but, on the other hand, also act as constraints on change. Companies such as Kodak, Polaroid, and Woolworths were iconic companies in their day that became hostage to their previous successes—and it led to their eventual decline.

How can managers use environmental scanning

- Environmental scanning: screening information to detect emerging trends - Competitor intelligence: gathering information about competitors that allows managers to anticipate competitors' actions rather than merely react to the o A manager's analysis of the external environment may be improved by environmental scanning, which involves screening information to detect emerging trends. One of the fastest-growing forms of environmental scanning is competitor intelligence, gathering information about competitors that allows managers to anticipate competitors' actions rather than merely react to them. o In a changing global business environment, environmental scanning and obtaining competitive intelligence can be quite complex, especially since information must be gathered from around the world. However, one thing managers could do is subscribe to news services that review newspapers and magazines from around the globe and provide summaries to client companies. o Managers do need to be careful about the way information, especially competitive intelligence, is gathered to prevent any concerns about whether it's legal or ethical.

Types of Change: Strategy

- Failure to change strategy when circumstances dictate could undermine a company's success.

Approaches to planning

- Formal Planning Department: a group of planning specialists whose sole responsibility is helping to write organizational plans. o In the traditional approach, planning is done entirely by top-level managers who are often assisted by a formal planning department, a group of planning specialists whose sole responsibility is to help write the various organizational plans. Under this approach, plans developed by top-level managers flow down through other organizational levels, much like the traditional approach to goal-setting. As they flow down through the organization, the plans are tailored to the particular needs of each level. o Although this approach makes managerial planning thorough, systematic, and coordinated, all too often the focus is on developing "the plan"—a thick binder (or binders) full of meaningless information that's stuck on a shelf and never used by anyone for guiding or coordinating work efforts

Stress

- Stress: the adverse reaction people have to excessive pressure placed on them from extraordinary demands, constraints, or opportunities o An uncertain environment characterized by time pressures, increasing workloads, mergers, and restructuring has created a large number of employees who are overworked and stressed. In fact, depending on which survey you look at, the number of employees experiencing job stress in the United States ranges anywhere from 40 percent to 80 percent.

Planning and Performances

- Formal planning is associated with positive financial results - Quality of planning/implementation more important than the extent of it - External factors can reduce the impact of planning on performance - Planning-performance relationship seems to be influenced by the planning time frame o Numerous studies have shown generally positive relationships between planning and performance. o Formal planning is associated with positive financial results—higher profits, higher return on assets, and so forth. o Doing a good job of planning and implementing those plans plays a bigger part in high performance than how much planning is done. o In those studies where formal planning didn't lead to higher performance, the external environment often was the culprit. When external forces—think governmental regulations or powerful labor unions—constrain managers' options, it reduces the impact planning has on an organization's performance. o Finally, the planning-performance relationship seems to be influenced by the planning time frame. It seems that at least four years of formal planning is required before it begins to affect performance

Why are Whistle-blowers important?

- It's important for managers to assure employees who raise ethical concerns or issues that they will face no personal or career risks. These individuals, often called whistle-blowers, can be a key part of any company's ethics program. - How can employees be protected so they're willing to step up if they see unethical or illegal things occurring? One way is to set up toll-free ethics hotlines. Another way is to have in place a "procedurally just process," which means making sure the decision-making process is fair and that employees are treated respectfully about their concerns. Backlash against whistle-blowers can be costly. - Finally, federal legislation offers some legal protection. According to the Sarbanes-Oxley Act, any manager who retaliates against an employee for reporting violations faces a stiff penalty: a 10-year jail sentence. Antiretaliation protections against whistle-blowers have been strengthened by the more recent Dodd-Frank Wall Street Reform Act. Unfortunately, despite this protection, fewer than two of every three employees felt they would be protected from retaliation, and about the same proportion fear losing their jobs if they do not meet performance targets.

leading change

- Managers can make change happen successfully by: o Making organization change capable o Understanding their own role in process o Giving employees a role in the change What does it take to be a change-capable organization? Exhibit 7-6 summarizes the characteristics. The second component of making change happen successfully is for managers to recognize their own important role in the process. Managers can, and do, act as change agents. But their role in the change process includes more than being catalysts for change; they must also be change leaders. The final aspect of making change happen successfully revolves around getting all organizational members involved. Successful organizational change is not a one- person job. Individual employees are a powerful resource in identifying and addressing change issues. Managers need to encourage employees to be change agents—to look for those day-to-day improvements and changes that individuals and teams can make.

Stressors

- Stressors: factors that cause stress o Stress can be caused by personal factors and by job-related factors called stressors. Clearly, change of any kind—personal or job-related—has the potential to cause stress because it can involve demands, constraints, or opportunities.

Managing Ethical Lapse and Social Responsibility

- One survey reported that among 5,000 employees: 45 percent admitted falling asleep at work and 22 percent said they spread a rumor about a coworker o Even after public outrage over the Enron-era misdeeds, irresponsible and unethical practices by managers in all kinds of organizations haven't gone away. One survey reported that among 5,000 employees: 45 percent admitted to falling asleep at work; 22 percent said they spread a rumor about a coworker; 18 percent said they snooped after hours; and 2 percent said they took credit for someone else's work. o Unfortunately, it's not just at work that we see such behaviors. Studies conducted by the Center for Academic Integrity showed that 26 percent of college and university business majors admitted to "serious cheating" on exams and 54 percent admitted to cheating on written assignments. But business students weren't the worst cheaters—that distinction belonged to journalism majors, of whom 27 percent said they had cheated.

Structural Variables

- Organic structures o First, an organic-type structure positively influences innovation. Because this structure is low in formalization, centralization, and work specialization, it facilitates the flexibility and sharing of ideas that are critical to innovation. - Abundant resources o Second, the availability of plentiful resources provides a key building block for innovation. - High interunit communication o Third, frequent communication between organizational units helps break down barriers to in novation. Cross-functional teams, task forces, and other such organizational designs facilitate interaction across departmental lines and are widely used in innovative organizations. - Minimal time pressure o Fourth, innovative organizations try to minimize extreme time pressures on creative activities despite the demands of white-water rapids environments. Although time pressures may spur people to work harder and may make them feel more creative, studies show that it actually causes them to be less. - Work and non-work support o Finally, studies have shown that an employee's creative performance was enhanced when an organization's structure explicitly supported creativity. Beneficial kinds of support included things such as encouragement, open communication, readiness to listen, and useful feedback.

Types of Change: People

- Organizational development: change methods that focus on people and the nature and quality of interpersonal work relationships o Changing people involves changing attitudes, expectations, perceptions, and behaviors—something that's not easy to do. Organizational development (OD) is the term used to describe change methods that focus on people and the nature and quality of interpersonal work relationships. o Managers need to recognize that some techniques that work for U.S. organizations may not be appropriate for organizations or organizational divisions based in other countries.

How can stress be reduced?

- Realistic job preview during selection process - Performance planning program, e.g. MBO - Job redesign - Addressing personal stress o Counseling o Time management programs o Wellness programs - Because stress can never be totally eliminated from a person's life, managers want to reduce the stress that leads to dysfunctional work behavior. How? Through controlling certain organizational factors to reduce job-related stress, and to a more limited extent, offering help for personal stress. - Things managers can do in terms of job-related factors begin with employee selection. Managers need to make sure an employee's abilities match the job requirements. When employees are in over their heads, their stress levels are typically high. Similarly, a performance planning program such as MBO (management by objectives) will clarify job responsibilities, provide clear performance goals, and reduce ambiguity through feedback. Job redesign is also a way to reduce stress. If stress can be traced to boredom or to work overload, jobs should be redesigned to increase challenge or to reduce the workload. - Stress from an employee's personal life raises two problems. First, it's difficult for the manager to control directly. Second, ethical considerations include whether the manager has the right to intrude—even in the most subtle ways—in an employee's personal life.

Why do people resist change?

- Uncertainty - Habit - Fear of loss - Belief change is inconsistent with goals of organization o Why do people resist change? The main reasons include uncertainty, habit, concern over personal loss, and the belief that the change is not in the organization's best interest. Change replaces the known with uncertainty. Another cause of resistance is that we do things out of habit. The third cause of resistance is the fear of losing something already possessed. Change threatens the investment you've already made in the status quo. A final cause of resistance is a person's belief that the change is incompatible with the goals and interests of the organization.

Mission Statement

- WRITTEN IN TERMS OF OUTCOMES RATHER THAN ACTIONS - MEASUREABLE AND QUANTITIFABLE - CLEAR AS TO A TIME FRAME - CHALLENGING YET ATTAINABLE - WRITTEN DOWN - COMMUNICATED TO ALL NECESSARY ORGANIZATIONAL MEMBERS

Ethical Leadership

- What managers do has a strong influence on employees' decisions whether to behave ethically. o Managers must provide ethical leadership. As we said earlier, what managers do has a strong influence on employees' decisions whether to behave ethically. When managers cheat, lie, steal, manipulate, take advantage of situations or people, or treat others unfairly, what kind of signal are they sending to employees (or other stakeholders)? Probably not the one they want to send. Exhibit 6-9 gives some suggestions on how managers can provide ethical leadership.

Innovation and Design Thinking

- When a business approaches innovation with a design-thinking mentality, the emphasis is on getting a deeper understanding of what customers need and want. - Just as TQM provides a process for improving quality throughout an organization, design thinking can provide a process for coming up with things that don't exist. - A design-thinking mentality also entails knowing customers as real people with real problems—not just as sales targets or demographic statistics. But it also entails being able to convert those customer insights into real and usable products.

environmental uncertainty

- When uncertainty is high, plans should be specific, but flexible. - Managers must be prepared to change or amend plans as they're implemented. At times, they may even have to abandon the plans.

White-Water Rapids Metaphor

- White-water rapids metaphor: the lack of environmental stability and predictability requires that managers and organizations continually adapt and manage change actively to survive o The stability and predictability of the calm waters metaphor don't exist. Disruptions in the status quo are not occasional and temporary, and they are not followed by a return to calm waters. Many managers never get out of the rapids. o Although you'd expect a chaotic and dynamic environment in high-tech industries, even organizations in non-high-tech industries are faced with constant change. o Today, any organization that treats change as the occasional disturbance in an otherwise calm and stable world runs a great risk. Too much is changing too fast for an organization or its managers to be complacent.

Steps in Goals-Setting

1. Review the organization's mission, or purpose. a. Review the organization's mission, or purpose. A mission is a broad statement of an organization's purpose that provides an overall guide to what organizational members think is important. Managers should review the mission before writing goals because goals should reflect that mission. 2. Evaluate available resources. a. Evaluate available resources. You don't want to set goals that are impossible to achieve given your available resources. Even though goals should be challenging, they should be realistic. After all, if the resources you have to work with won't allow you to achieve a goal no matter how hard you try or how much effort is exerted, you shouldn't set that goal. 3. Determine the goals individually or with input from others. a. Determine the goals individually or with input from others. The goals reflect desired outcomes and should be congruent with the organizational mission and goals in other organizational areas. These goals should be measurable, specific, and include a time frame for accomplishment. 4. Write down the goals and communicate them to all who need to know. a. Write down the goals and communicate them to all who need to know. Writing down and communicating goals forces people to think them through. The written goals also become visible evidence of the importance of working toward something. 5. Review results and whether goals are being met. a. Review results and whether goals are being met. If goals aren't being met, change them as needed. Once the goals have been established, written down, and communicated, a manager is ready to develop plans for pursuing the goals.

Type B Personality

people who are relaxed and easygoing and accept change easily

Stimulating and Nurturing Innovation

An environment that stimulates innovation includes three variables: the organization's structure, culture, and human resource practices. But having creative people isn't enough. It takes the right environment to help transform those inputs into innovative products or work methods. This "right" environment—that is, an environment that stimulates innovation—includes three variables: the organization's structure, culture, and human resource practices

Being an Ethical Leader

Be a good role model by being ethical and honest tell the truth always don't hide or manipulate information be willing to admit your failures share your personal values by regularly communicating them to employees stress the organization's or team's important shared values Use the reward system to hold everyone accountable the values

provides direction

First, planning provides direction to managers and nonmanagers alike. When employees know what their organization or work unit is trying to accomplish and what they must contribute to reach goals, they can coordinate their activities, cooperate with each other, and do what it takes to accomplish those goals.

New Organizational Strategy

For decades, Walgreens' strategy focused on increasing its number of retail stores. The costs of maintaining so many stores are substantial, putting downward pressures on profit levels. Company management reconsidered its strategy of adding stores. In its place, the company refocused its strategy to improving the

Changing consumer needs and want

Ford Motor Company understands the importance of being responsive to its customers. The company's experiments will also enable them to attract a new breed of customers, helping to secure the company's future. But sometimes a company may make changes that fail to meet customer preferences.

Human Resource Variables Idea Champion

Idea Champion: individual who actively and enthusiastically supports new ideas, builds support, overcomes resistance, and ensures that innovations are implemented

Minimizes waste and redundancy

In addition, planning minimizes waste and redundancy. When work activities are coordinated around plans, inefficiencies become obvious and can be corrected or eliminated.

Participation

Participation involves bringing those individuals directly affected by the proposed change into the decision-making process. Their participation allows these individuals to express their feelings, increase the quality of the process, and increase employee commitment to the final decision.

long term plans

Plans with a time frame beyond three years.

Strategies for Managing Cultural Change

Set the tone through management behavior; top managers, particularly, need to be positive role models. Create new stories, symbols, and rituals to replace those currently in use. Select, promote, and support employees who adopt the new values. Redesign socialization processes to align with the new values. To encourage acceptance of the new values, change the reward system. Replace unwritten norms with clearly specified expectations. Shake up current subcultures through job transfers, job rotation, and/or terminations. Work to get consensus through employee participation and creating a climate with a high level of trust.

Steps in MBO

Step 1: The organization's overall objectives and strategies are formulated. Step 2: Major objectives are allocated among divisional and departmental units. Step 3: Unit managers collaboratively set specific objectives for their units with their managers. Step 4: Specific objectives are collaboratively set with all department members. Step 5: Action plans, defining how objectives are to be achieved, are specified and agreed upon by managers and employees. Step 6: The action plans are implemented. Step 7: Progress toward objectives is periodically reviewed, and feedback is provided. Step 8: Successful achievement of objectives is reinforced by performance-based rewards.

Strategic Plans

Strategic long term directional single use

Types of Diversity

Surface level and deep level

Religion

Title VII of the Civil Rights Act prohibits discrimination on the basis of religion - Title VII of the Civil Rights Act prohibits discrimination on the basis of religion (as well as race/ethnicity, country of origin, and sex). Today, it seems that the greatest religious diversity issue in the United States revolves around Islam, especially after 9/11. Islam is one of the world's most popular religions, and some 2 million Muslims live in the United States. For the most part, U.S. Muslims have attitudes similar to those of other U.S. citizens. However, there are real and perceived differences.

True or False: At age 65, life expectancy is expected to be an additional 20 years.

True

Changing technology

What do the Chevrolet Volt and the Tesla Motors Model S have in common? Both are examples of electric-powered vehicles. Compared to gas-powered vehicles, electric cars have shorter driving ranges; however, ongoing research and development into improving battery capacity to extend their range is a high priority.

Independent Social Audits

evaluate decisions and management practices in terms of the organization's code of ethics o The fear of being caught can be an important deterrent to unethical behavior. Independent social audits, which evaluate decisions and management practices in terms of the organization's code of ethics, increase that likelihood. Such audits can be regular evaluations or they can occur randomly with no prior announcement. An effective ethics program probably needs both. To maintain integrity, auditors should be responsible to the company's board of directors and present their findings directly to the board.

types of goals

financial goals, strategic goals, stated goals, and real goals

Implications

for entrepreneurs for c corporate managers for career planning • Entrepreneurs thrive on change and innovation. Major disruptions open the door for new products and services to replace established and mature businesses. If you're looking to create a new business with a large potential upside, look for established businesses that can be disrupted with a cheaper, simpler, smaller, or more convenient substitute. • With few exceptions, the only instances in which mainstream firms have successfully established a timely position in a disruptive technology were those in which the firms' managers set up an autonomous organization charged with building a new and independent business around the disruptive technology." This can be achieved by either creating a new business from scratch or acquiring a small company and keeping it separate. These separate groups are frequently referred to as skunk works. • Never get comfortable with a single employer. Keep your skills current. You are responsible for your future. Don't assume your employer is going to be looking out for your long-term interests. Take risks while you're young.

real goals

goals that an organization actually pursues, as defined by the actions of its members

Whistle-blower

individual who raises ethical concerns or issues to others

Whistle blower paart 2

individual who raises ethical concerns to others - There is a whistle blower protection act that protects them when they share something that can impact society and people

Who's Vulnerable?

innovations because they have the most to lose and are most vested in their current markets and technologies. • So which businesses are most vulnerable to disruptive innovations? The answer, as alluded to previously, is large, established, and highly profitable organizations. Why? Because they have the most to lose and are most vested in their current markets and technologies. • Disruptive innovations, especially at the beginning, typically apply to emerging or small markets and project lower profits than a firm's mainline products. And their novelty has little or no appeal to the organization's most profitable customers.

what is the plan in between a short term and long term?

intermediate plan Although these time classifications are fairly common, an organization can use any planning time frame it wants.

Real and stated goals

o **Real goal is what you see and stated goals is what is on paper We can classify most company's goals as either strategic or financial. Financial goals are related to the financial performance of the organization, while strategic goals are related to all other areas of an organization's performance. For instance, discount retailer Dollar General announced its plan to demonstrate sales growth of 7-10 percent in 2016, with earnings per share (profit divided by the total number of company stock shares) to increase by 10-15 percent.6 And here's an example of a strategic goal from the United Nations World Food Programs: to ensure that no child goes to bed hungry. Stated goals are official statements of what an organization says, and what it wants its stakeholders to believe, its goals are. However, stated goals—which can be found in an organization's charter, annual report, public relations announcements, or in public statements made by managers—are often conflicting and influenced by what various stakeholders think organizations should do. If you want to know an organization's real goals—those goals an organization actually pursues—observe what organizational members are doing. Actions define priorities.

Innovation vs. Creativity

o Creativity is how you think but innovation is how you put those thoughts into action. o Creativity is idea generator o Innovation is taking those ideas and turning them into a solution

formal planning

o Specific, time-oriented goals o Goals written and shared In formal planning, specific goals covering a specific time period are defined. These goals are written and shared with organizational members to reduce ambiguity and create a common understanding about what needs to be done. Finally, specific plans exist for achieving these goals.

Calm Waters Metaphor

o Unfrezzing the status quo o Changing to a new state o Refrezzing to make the change permanent According to Kurt Lewin, successful change can be planned and requires unfreezing the status quo, changing to a new state, and refreezing to make the change permanent. The status quo is considered equilibrium. To move away from this equilibrium, unfreezing is necessary. Unfreezing can be thought of as preparing for the needed change. It can be done by increasing the driving forces, which are forces pushing for change; by decreasing the restraining forces, which are forces that resist change; or by combining the two approaches. Once unfreezing is done, the change itself can be implemented. However, merely introducing change doesn't ensure that it will take hold. The new situation needs to be refrozen so that it can be sustained over time. Unless this last step is done, there's a strong chance that employees will revert back to the old equilibrium state—that is, the old ways of doing things.

stated goals

official statements of what an organization says, and what it wants its various stakeholders to believe, its goals are

directional plans

ongoing plans that provide guidance for activities performed repeatedly

operational plans

operational short term specific standing

Classical View

the view that management's only social responsibility is to maximize profits

1963 Equal Pay Act

Equal Pay Act: Prohibits pay differences for equal work based on gender

Social responsiveness

the view that management's only social responsibility is to maximize profits

What is workplace diversity?

the ways in which people in an organization are different from and similar to one another.

The Socioeconomic View

when a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities

Discrimination

when someone acts out their prejudicial attitudes toward people who are the targets of their prejudice • Both prejudice and stereotyping can lead to someone treating others who are members of a particular group unequally. That's discrimination, which is when someone acts out their prejudicial attitudes toward people who are the targets of their prejudice. • You'll find in Exhibit 5-7 definitions and examples of different types of discrimination. Many of these actions are prohibited by law, so you won't find them discussed in employee handbooks or organizational policy statements. However, you can still see these actions in workplaces. As discrimination has increasingly come under both legal scrutiny and social disapproval, most overt forms have faded, which may have resulted in an increase in more covert forms such as incivility or exclusion.

People Management

• Better use of employee talent • Increased quality of team problem-solving efforts • Ability to attract and retain employees of diverse backgrounds

Ethnicity

• Ethnicity: social traits (such as cultural background or allegiance) that are shared by a human population • Ethnicity is related to race, but it refers to social traits—such as one's cultural background or allegiance—that are shared by a human population. • Most of the research on race and ethnicity as they relate to the workplace has looked at hiring decisions, performance evaluations, pay, and workplace discrimination. However, much of that research has focused on the differences in attitudes and outcomes between whites and African Americans. • One finding is that individuals in workplaces tend to favor colleagues of their own race in performance evaluations, promotion decisions, and pay raises. Although such effects are small, they are consistent. Next, research shows substantial racial differences in attitudes toward affirmative action, with African Americans favoring such programs to a greater degree than whites. Other research shows that in employment interviews, African Americans receive lower ratings. In the job setting, they receive lower job performance ratings, are paid less, and are promoted less frequently. However, no statistically significant differences between the two races are observed in absenteeism rates, applied social skills at work, or accident rates.

Strategic

• Increased understanding of the marketplace, which improves ability to better market to diverse consumers • Potential to improve sales growth and increase market share • Potential source of competitive advantage because of improved innovation efforts • Viewed as moral and ethical; the "right " thing to do

Organizational Performance

• Reduced costs associated with high turnover, absenteeism, and lawsuits • Enhanced problem-solving ability • Improved system flexibility

Evaluating Green Management

- Company-issued reports on environmental performance - ISO 9000 (quality management) and ISO 14000 (environmental management) standards - Global 100 list of the most sustainable corporations in the world o More than 7,500 companies around the globe now voluntarily report their efforts in promoting environmental sustainability using the guidelines developed by the Global Reporting Initiative (GRI). These reports, which can be found on the GRI website (www.globalreporting.org), describe the numerous green actions of these organizations. o Another way organizations show their commitment to being green is through pursuing standards developed by the nongovernmental International Organization for Standardization (ISO). Organizations that want to become ISO 14000 compliant must develop a total management system for meeting environmental challenges. o One final way to evaluate a company's green actions is to use the Global 100 list of the most sustainable corporations in the world (www.corporateknights.com). To be named to this list a company has displayed a superior ability to effectively manage environmental and social factors.

Leadership on top

- Doing business ethically requires a commitment from managers at all levels, but especially the top level because: o they uphold the shared values and set the cultural tone o they're role models in both words and actions Doing business ethically requires a commitment from managers at all levels, but especially the top level. Why? Because they're the ones who uphold the shared values and set the cultural tone. They're role models in terms of both words and actions, though what they do is far more important than what they say. If top managers, for example, take company resources for their personal use, inflate their expense accounts, or give favored treatment to friends, they imply that such behavior is acceptable for all employees.

Green Management

- Green management: managers consider the impact of their organization on the natural environment o Until the late 1960s, few people (and organizations) paid attention to the environmental consequences of their decisions and actions. However, a number of environmental disasters brought a new spirit of environmentalism to individuals, groups, and organizations. Increasingly, managers have begun to consider the impact of their organization on the natural environment, which we call green management.

Ethics Training

- More organizations are setting up seminars, workshops, and similar ethics training programs to encourage ethical behavior. o Such training programs aren't without controversy, as the primary concern is whether ethics can be taught. Critics stress that the effort is pointless because people establish their individual value systems when they're young. Proponents note, however, that several studies have shown that values can be learned after early childhood. In addition, they cite evidence that shows that teaching ethical problem solving can make an actual difference in ethical behaviors; that training has increased individuals' level of moral development; and that, if nothing else, ethics training increases awareness of ethical issues in business.

Developing Codes of Ethics

- Organizational leaders should model appropriate behavior and reward those who act ethically. - Managers should reaffirm the importance of the ethics code and discipline those who break it - Stakeholders should be considered as an ethics code is developed or improved - Managers should communicate and reinforce the ethics code regularly - Managers should use the five-step process to guide employees when faced with ethical dilemmas o Unfortunately, codes of ethics may not work as well as we think they should. A survey of employees in U.S. businesses found that 41 percent of those surveyed had observed ethical or legal violations in the previous 12 months, including such things as conflicts of interest, abusive or intimidating behavior, and lying to employees. And 37 percent of those employees didn't report observed misconduct. Does this mean that codes of ethics shouldn't be developed? No. However, in doing so, managers should use these suggestions.

The changing workplace: characteristics of the U.S. Population

- Total population of the united states o The total population is projected to increase to 438 million by the year 2050 while in 2018 it was 325 million. 82% of that is due to immigrants and their u.s. born descendants. - Racial/ethnic group - Aging population

Job Goals and Performance Appraisal

- Under the stress of unrealistic goals, otherwise ethical employees may feel they have no choice but to do whatever is necessary to meet those goals. o Under the stress of unrealistic goals, otherwise ethical employees may feel they have no choice but to do whatever is necessary to meet those goals. Also, goal achievement is usually a key issue in performance appraisal. If performance appraisals focus only on economic goals, ends will begin to justify means. To encourage ethical behavior, both ends and means should be evaluated. For example, a manager's annual review of employees might include a point-by-point evaluation of how their decisions measured up against the company's code of ethics as well as how well goals were met.

The legal aspect of workplace diversity

- Workplace diversity needs to be more than understanding and complying with federal laws.

Be a dependable organizational citizen

1. Comply with safety, health, and security regulations. 2. Demonstrate courtesy, respect, honesty, and fairness. 3. Illegal drugs and alcohol at work are prohibited. 4. Manage personal finances well. 5. Exhibit good attendance and punctuality. 6. Follow directives of supervisors. 7. Do not use abusive language. 8. Dress in business attire. 9. Firearms at work are prohibited.

Do not do anything unlawful or improper that will harm the organization

1. Conduct business in compliance with all laws. 2. Payments for unlawful purposes are prohibited. 3. Bribes are prohibited. 4. Avoid outside activities that impair duties. 5. Maintain confidentiality of records. 6. Comply with all antitrust and trade regulations. 7. Comply with all accounting rules and controls. 8. Do not use company property for personal benefit. 9. Employees are personally accountable for company funds. 10. Do not propagate false or misleading information. 11. Make decisions without regard for personal gain.

Be good to customers

1. Convey true claims in product advertisements. 2. Perform assigned duties to the best of your ability. 3. Provide products and services of the highest quality.

Glass Ceiling

: the invisible barrier that separates women and minorities from top management positions. - In the 1980s, the term glass ceiling, first used in a Wall Street Journal article, refers to the invisible barrier that separates women and minorities from top management positions. The idea of a "ceiling" means something is blocking upward movement and the idea of "glass" is that whatever's blocking the way isn't immediately apparent. - Research on the glass ceiling has looked at identifying the organizational practices and interpersonal biases that have blocked women's advancement. Findings from those studies have ranged from lack of mentoring to sex stereotyping, views that associate masculine traits with leader effectiveness, and bosses' perceptions of family-work conflict.

Goals

Although many organizations use goals to guide and motivate employees, those goals can create some unexpected problems. One study found that people who don't reach set goals are more likely to engage in unethical behavior, even if they do or don't have economic incentives to do so

1990 Americans with Disabilities Act

Americans with Disabilities Act: Prohibits discrimination against individuals who have disabilities or chronic illnesses; also requires reasonable accommodations for these individuals

Performance Appraisal System

An organization's performance appraisal system can also influence ethical behavior. Some systems focus exclusively on outcomes, while others evaluate means as well as ends. When employees are evaluated only on outcomes, they may be pressured to do whatever is necessary to look good on the outcomes and not be concerned with how they got those results.

Ethnical Behavior can be Influenced by?

An organization's structural design, goals, performance appraisal system, and reward allocation

Ethical standards are not universal

Are ethical standards universal? Although some common moral beliefs exist, social and cultural differences between countries are important factors that determine ethical and unethical behavior.

Late 1980s

Concept of workforce diversity expanded from compliance to an issue of business survival: Publication of Workforce 2000 opened business leaders' eyes about the future composition of workforce—that is, more diverse; first use of term workforce diversity

Age

Both Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act of 1967 prohibit age discrimination • The aging population is a major critical shift taking place in the workforce. With many of the nearly 85 million baby boomers still employed and active in the workforce, managers must ensure that those employees are not discriminated against because of age. Both Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act of 1967 prohibit age discrimination.

1991 Civil Rights Act of 1991

Civil Rights Act of 1991: Reaffirms and tightens prohibition of discrimination and gives individuals right to sue for punitive damages

1947 (amended in 1972) Civil Rights Act, Title VII

Civil Rights Act, Title VII: Prohibits discrimination based on race, color, religion, national origin, or gender

Discriminatory policies or practices

Definition: Actions taken by representatives of the organization that deny equal opportunity to perform or unequal rewards for performance Example: Older workers may be targeted for layoffs because they are highly paid and have lucrative benefits. a

Incivility

Definition: Disrespectful treatment, including behaving in an aggressive manner, interrupting the person, or ignoring his or her opinions Example: Female lawyers note that male attorneys frequently cut them off or do not adequately address their comments. f

Exclusion

Definition: Exclusion of certain people from job opportunities, social events, discussions, or informal mentoring; can occur unintentionally Example: Many women in finance claim they are assigned to marginal job roles or are given light workloads that don't lead to promotion. e

Mockery and Insults

Definition: Jokes or negative stereotypes; sometimes the result of jokes taken too far Examples: Arab Americans have been asked at work whether they were carrying bombs or were members of terrorist organizations. d

Intimidation

Definition: Overt threats or bullying directed at members of specific groups of employees Example: African American employees at some companies have found nooses hanging over their work stations. c

Sexual Harassment

Definition: Unwanted sexual advances and other verbal or physical conduct of a sexual nature that create a hostile or offensive work environment Example: Salespeople at one company went on company-paid visits to strip clubs, brought strippers into the office to celebrate promotions, and fostered pervasive sexual rumors. b

Early 1980s

Focus on assimilating minorities and women into corporate setting: Corporate programs developed to help improve self-confidence and qualifications of diverse individuals so they can "fit in"

1960s to 1970s

Focus on complying with laws and regulations: Title VII of Civil Rights Act; Equal Employment Opportunity Commission; affirmative action policies and programs

New Millennium

Focus on diversity and inclusion for business success: Workforce diversity seen as core business issue; important to achieve business success, profitability, and growth

Late 1980s to Late 1990s

Focus on fostering sensitivity: Shift from compliance and focusing only on women and minorities to include everyone; making employees more aware and sensitive to the needs and differences of others

2008 Genetic Information Nondiscrimination Act

Genetic Information Nondiscrimination Act: Prohibits discrimination against employees or applicants because of genetic information (one's own or family members' genetic tests)

United Nations global contract

Human rights: principle 1: business should support and respect the protection of internationally proclaimed human rights within their sphere of influence principle 2: make sure they are not complicit in human rights abuse labor standars principle 3: business should uphold the freedom to association and the effective recognition of the right to collective bargaining principle 4: the elimination of all forms of forced and compuslsory labor principle 5: the effective abolition of child labor principle 6: the elimination of discrimination in respect to employment and occupation environment: principle 7: business should support a precautionary approach to environmental challenges principle 8: undertake initiatives to promote greater environmental responsibility principle 9: encourage the development and diffusion of environmentally friendly technology Anti-corruption principle 10: business should work against corruption in all its forms, including extortion and bribery

Locus of Control

Locus of control is the degree to which people believe they control their own fate. People with an internal locus of control believe they control their own destinies. They're more likely to take responsibility for consequences and rely on their own internal standards of right and wrong to guide their behavior.

Gender

Women (49.8%) and men (50.2%) now each make up almost half of the workforce • Women (49.5%) and men (50.5%) now each make up almost half of the workforce. Yet, gender diversity issues are still quite prevalent in organizations. The latest information shows that women's median earnings were 83 percent of male full-time wage and salary workers. And research by Catalyst found that men start their careers at higher levels than women. And after starting out behind, women don't ever catch up. Men move up the career ladder further and faster as well. • Women get paid .79 cents per dollar compared to a male

1978 Pregnancy Discrimination Act

Pregnancy Discrimination Act: Prohibits discrimination against women in employment decisions on the basis of pregnancy, childbirth, and related medical decisions

A Good Mentor Does

Provides Instruction Offers Advice Gives constructive criticism Helps build appropriate skills shares technical expertise Develops a high-quality, close and supportive relationship with protege Keeps lines of communication open Knows when to "let go" and let the protege prove what they know and can do

1973 Rehabilitation Act

Rehabilitation Act: Prohibits discrimination against a qualified person with a disability in the federal government as well as retaliation against a person who complained about discrimination

Process for Addressing Ethnical Dilemmas

Step 1: What is the ethical dilemma? Step 2: Who are the affected stakeholders? Step 3: Which personal, organizational, and external factors are important in this decision? Step 4: What are possible alternatives? Step 5: What is my decision and how will I act on it?

Reward Allocation

The more that rewards or punishment depend on specific goal outcomes, the more employees are pressured to do whatever they must to reach those goals—perhaps to the point of compromising their ethical standards.

Code of Ethics

a formal statement of an organization's primary values and the ethical rules it expects its employees to follow o Uncertainty about what is and is not ethical can be a problem for employees. A code of ethics, a formal statement of an organization's values and the ethical rules it expects employees to follow, is a popular choice for reducing that ambiguity. Research shows that 97 percent of organizations with more than 10,000 employees have a written code of ethics.

What do we mean by ethics?

We're defining it as the principles, values, and beliefs that define right and wrong decisions and behavior. Many decisions managers make require them to consider both the process and who's affected by the result. To better understand the ethical issues involved in such decisions, let's look at the factors that determine whether a person acts ethically or unethically

Prejudice

a preconceived belief, opinion, or judgment toward a person or a group of people - Based on all types of diversity - Race, gender, age, disability, religion, etc. - One outcome of our personal biases can be prejudice, a preconceived belief, opinion, or judgment toward a person or a group of people. Our prejudice can be based on all the types of diversity we discussed: race, gender, ethnicity, age, disability, religion, sexual orientation, or even other personal characteristics.

Mentoring

a process whereby an experienced organizational member (a mentor) provides advice and guidance to a less experienced member (a protégé) - A good mentoring program would be aimed at all employees with high potential to move up the organization's career ladder.

Which country had the world's highest percentage of older people in 2013? a. Sweden b. Japan c. China d. Italy

b. Japan

3. Which of the world's continents has the highest percentage of older people (age 60 or older)? a. North America b. Latin America c. Europe d. Asia

c. Europe

The world's older population (60 and older) is expected to change from 841 million in 2013 to ______ people in 2050? a. decrease to 500 million b. decrease to 750 million c. increase to 1.5 billion d. increase to 2 billion

d. increase to 2 billion

Surface-level Diversity

easily perceived differences that may trigger certain stereotypes, but that do not necessarily reflect the ways people think or feel - The demographic characteristics that we tend to think of when we think of diversity—age, race, gender, ethnicity, and so on—are just the tip of the iceberg. - These can sometimes lead us to steryo type people

Employee Resource Groups

groups made up of employees connected by some common dimension of diversity

Conventional Level

o At the second level, the conventional level, ethical decisions rely on maintaining expected standards and living up to the expectations of others. 3. Living up to what is expected by people close to you 4. Maintaining conventional order by fulfilling obligations

Activist approach (high environmental sensitivity)

o Finally, if an organization pursues an activist (or dark green) approach, it looks for ways to protect the earth's natural resources. The activist approach reflects the highest degree of environmental sensitivity and illustrates social responsibility.

LGBT

in two separate U.S. Supreme Court cases, the justices held that transgendered (gender identity) and lesbian, bisexual, and gay (sexual orientation) individuals were protected under Title VII's prohibition against sexual discrimination • The acronym LGBT—which refers to lesbian, gay, bisexual, and transgender people—relates to the diversity of sexual orientation and gender identity. There are an estimated 5.4 million LGBT employees in the U.S. private sector. Sexual orientation has been called the "last acceptable bias." We want to emphasize that we're not condoning this perspective, but what this comment refers to is that most people understand that racial and ethnic stereotypes are "off-limits," but it's not unusual to hear derogatory comments about gays or lesbians. And in 28 states, workers can be fired for being gay or transgendered. • Employers in the United States have taken differing approaches to their treatment of sexual orientation, with many adopting a variation of the "don't ask, don't tell" policy. Some just do not hire any LGBT employees. But, according to a report from the Human Rights Campaign Foundation, 91 percent of the largest corporations in the United States now prohibit employment discrimination based on sexual orientation, and 61 percent prohibit bias based on gender identity.

Stereotyping

judging a person based on a perception of a group to which that person belongs • For instance, "Married persons are more stable employees than single persons" is an example of stereotyping. Keep in mind, though, that not all stereotypes are inaccurate. However, many stereotypes aren't factual and distort our judgment

Market approach

o As an organization becomes more sensitive to environmental issues, it may adopt the market approach and respond to environmental preferences of customers. Whatever customers demand in terms of environmentally friendly products will be what the organization provides.

preconventional level

o At the first level, the preconventional level, a person's choice between right or wrong is based on personal consequences from outside sources, such as physical punishment, reward, or exchange of favors. 1. sticking to rules to avoid physical punishment 2. following rules only when doing so is in your immediate interest

Principled Level

o At the principled level, individuals define moral values apart from the authority of the groups to which they belong or society in general 5. Valuing rights of others and upholding absolute values and rights regardless of the majority's opinion 6. Following self-chosen ethical principles even if they violate the law

Foreign Corrupt Practices Act

o In the case of payments to influence foreign officials or politicians, U.S. managers are guided by the Foreign Corrupt Practices Act (FCPA), which makes it illegal to knowingly corrupt a foreign official. However, even this law doesn't always reduce ethical dilemmas to black and white. In some countries, government bureaucrat salaries are low because custom dictates that they receive small payments from those they serve. Payoffs to these bureaucrats "grease the machinery" and ensure that things get done.

Stakeholder approach

o In the stakeholder approach, an organization works to meet the environmental demands of multiple stakeholders such as employees, suppliers, or community. any and everybody impacted by the environment

Social Responsibility

o The concept of social responsibility has been described in different ways. For instance, it's been called "profit making only," "going beyond profit making," "any discretionary corporate activity intended to further social welfare," and "improving social or environmental conditions." We can understand it better if we first compare it to two similar concepts: social obligation and social responsiveness. Social obligation is when a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities. The organization does what it's obligated to do and nothing more. This idea reflects the classical view of social responsibility, which says that management's only social responsibility is to maximize profits. The most outspoken advocate of this approach is economist and Nobel laureate Milton Friedman. He argued that managers' primary responsibility is to operate the business in the best interests of the stockholders, whose primary concerns are financial.

legal (light green) approach (aka social obligation) ((low level of environmental sensitivity))

o is simply doing what is required legally o In this approach, which illustrates social obligation, organizations exhibit little environmental sensitivity. They obey laws, rules, and regulations without legal challenge and that's the extent of their being green.

Ethics

principles, values, and beliefs that define right and wring behavior

diversity skills training

specialized training to educate employees about the importance of diversity and to teach them skills for working in a diverse workplace

Disability/Abilities

the Americans With Disabilities Act of 1990 prohibits discrimination against persons with disabilities. - Largest Minority Group in United States - 1990 was a watershed year for persons with disabilities. That was the year the Americans with Disabilities Act (ADA) became law. ADA prohibits discrimination against an individual who is "regarded as" having a disability and requires employers to make reasonable accommodations so their workplaces are accessible to people with physical or mental disabilities and enable them to effectively perform their jobs.

Race

the biological heritage (including skin color and associated traits) that people use to identify themselves • Race and ethnicity are important types of diversity in organizations. We define race as the biological heritage (including physical characteristics such as one's skin color and associated traits) that people use to identify themselves. Most people identify themselves as part of a racial group. Such racial classifications are an integral part of a country's cultural, social, and legal environments

Values-based management

the organization's values guide employees in the way they do their jobs o The selection process (interviews, tests, background checks, and so forth) should be viewed as an opportunity to learn about an individual's level of moral development, personal values, ego strength, and locus of control. o Because shared values can be powerful influences, many organizations are using values-based management, in which the organization's values guide employees in the way they do their jobs. o A strong culture exerts more influence on employees than does a weak one. If a culture is strong and supports high ethical standards, it has a powerful and positive influence on the decision to act ethically or unethically.