Management Exam Three

1. Skill Variety

extent to which a job requires a worker to use a wide range of skills/abilities/knowledge ex. skill variety of research scientist higher than Mcdonalds server

3. Herzberg's motivator-hygiene theory

focus on 1. outcomes that can lead to increased motivation/job satisfaction 2. outcomes that can prevent people from being dissatisfied -2 sets of needs: motivator (related to nature of the work itself) -outcomes= interesting work/autonomy/responsibility/ability to grow and develop on job/accomplishment/achievement satisfy these needs -hygiene needs (physical/psychological context in which work is performed) -outcomes= good working conditions/pay/job security/good coworker relations/effective supervision -no research support -show distinction between intrinsic (motivator) and extrinsic (hygiene) -prompted mana to study how jobs could be designed to be intrinsically motivating

1. positive reinforcement

gives people outcomes they desire when they perform organizationally functional behaviors -desired outcomes= (+) reinforcers ex. pay/promotion/raise -organizationally functional behaviors= contribute to org effectiveness

2. Social Learning Theory

how learning and motivation influenced by people's thoughts and beliefs and their observations of other's behaviors -3 motivators (vicarious learning/self reinforcement/self efficacy)

Inequity

lack of fairness, exists when person's outcome-input ratio not perceived to be equal to a referents -creates pressure/tension in people and motivates them to restore equity by bringing 2 ratios back into balance -underpayment inequity= person perceives that his own outcome-input ratio is less than referent ratio (not receiving outcomes you should be,given your inputs) -overpayment inequity= person perceives that his own outcome-input ratio is greater than referent (more outcomes than you should be)

Physical Ability Tests

measure physical strength and stamina as selection tools ex. firefighter/garbage collector/package delivery man ex. autoworkers tested for mechanical dexterity

Performance Tests

measures performance on actual job tasks ex. secretary= keyboarding test ex. applicants for mid/top mana given short term projects that mirror situations that arise in job being filled -assessment centers= 10-15 people for mana position do variety of tests over a few days (assessed for skills a manager needs, some activities in group and some individual and people observe and evaluate) ex. started with AT&T

Collective Bargaining

negotiation between labor unions and management to resolve conflicts on important issues like hours/wage/working conditions/job security) -sometimes use 3rd party mediator -then sign contract with terms of agreement -ongoing consideration in labor relations -if conflict on interpretation on contact= neutral 3rd party arbitrator called in -grievance procedure= workers able to voice concerns/have interests represented by union ex. worker unjustly fired= file grievance/have union rep them/arbitrator looks over contract -strike to drive home concerns

Need Theories

people are motivated to obtain outcomes at work that will satisfy their needs when they perform at high level -Need= requirement and/or necessity for survival and well being -mana must ensure people receive outcome that helps employee satisfy needs when they perform at high level -4 need theories (maslows/alderfers/herzbergs/mcclelands)

Distributive Justice

perceived fairness of the amount and allocation of rewards among individuals -more of this= employees more motivated

3. Self Efficacy

person's belief about his ability to perform a behavior successfully -more of this= more motivation and performance -have to believe they can perform at a high level ex. Enterprise= more self efficacy with training and higher levels of autonomy with experience and expressing confidence in ability to manage -verbal persuasion + past performance/accomplishments play role in determining self efficacy

Behavior

possible behaviors employee can engage in ex. enterprise= high quality customer service (giving customers rides) -persistence= when facing roadblocks, people keep trying instead of giving up ex. enterprise= seek to improve profitability and keep high level of customer service ex. why waiter is polite/rude, why teacher going through motions or caring about kid's learning ex. why managers put org's best interest first or their own (maximizing their money)

Importance of Reliability and Validity

reliability= degree to which a tool measures the same thing each time it is used -if more variability= tool is not reliable -determine reliability in interviews hard because dynamic is personal interpretation (reliable interview if interviewers come to similar conclusions) -want greatest degree reliability -validity= degree to which a tool measures what it purports to measure (how good it predicts performance) ex. does physical test actually test on the job skills (firefighter) -not clear honesty tests validly predict honest in retail/banking -ethical and legal obligation to R/V -need to keep up to date on advances in paper and pencil tests and keep more than 1 person in interview

On the Job Training

training takes place in the work setting as employees perform their job tasks -provided by coworkers/supervisors/occur as jobholders gain experience and knowledge from doing the work ex. newly hired waiter (Olive Garden/Red Lobster) ex. supervisor of new bus driver, rides bus to observe ex. Chefs learn new dishes by experimenting -learn by doing -use OTJ training on continuing basis to ensure subordinates keep up to date with changes in goals/tech/products/customer needs ex. Mary Kay= ongoing training so know new cosmetics and reminded of guiding principles

Types of Performance Appraisal

trait appraisals/behavior appraisals/results appraisals

Transfer of Training and Development

transfer of skills/knowledge to actual work situation -encouraged/expected to use new expertise

2. Alderfer's ERG Theory

-Clayton Alderfer -3 universal needs (existence/relatedness/growth) constitute a hierarchy of needs and motivate behavior. needs at more than one level can be motivational at the same time ex. cashier= existence (go to work regularly so job secure) and relatedness (become friends with other cashiers and form relationships) -need frustration= unable to satisfy needs at certain level, then they'll focus more intently on satisfying needs at next lowest level -research does not support some specific ideas

4. Pay and Benefits

-Pay= includes employee base salary/pay raise/bonuses and is determined by number of factors such are characteristics of the org/job/level of performance -Benefits= based on membership in an org (sick days/medical and life insurance/vacation) -link pay to behaviors and results that contribute to org effectiveness

Choice to make

-bases merit pay on individual/group/org performance -salary increase or bonus

Bringing it all together

-high motivation= high expectancy/instrumentality/valence -if any factor low- motivation is low

Who appraises performance

-most common= supervisors -appraisals from management usually augmented by appraisals from other sources

Other Needs

-need for work-life balance/time to take care of loved ones while being positively motivated at work -being exposed to nature has salutary effects, lack can impair wellbeing and performance

Results Appraisal

-what they accomplish/results -appraise performance by the results and actual outcomes of work behaviors ex. car salespeople= doesnt matter which behavior used as long as they hit sales goal/satisfy customers

Ways to restore equity

-when people experience underpayment= motivated to lower inputs (reduce work hours/less effort/absent) or motivated to increase outcomes (ask for raise or promotion) -can also change their perception of their own or referents input-outcomes (referent had harder projects or I take off more work than them) -if they have other job options= may leave org -when people experience overpayment= change perceptions of their own or referents input-outcome (realize they contribute more inputs than they thought/perceiving referents input lower or outcomes higher) -actual outcomes and inputs don't change, person being overpaid takes no real action -when experience either= decide that referent not appropriate (too different from yourself) -motivation highest when as many people as possible in org perceive that they are equitably treated -workers doing longer hours without any outcome increase+ advances in info tech (email/cell phone) = work intruding on home life/vacation/special occasions

4 determinants of structure and culture a manager selects

1. nature of the organizational environment 2. type of strategy organization pursues 3. Technology the organizations uses 4. Characteristics of human resources

Factors that determine if I or E

1. workers own personal characteristics (personality/attitudes/values) 2. nature of their jobs (job characteristics model) 3. nature of the org (structure/culture/control/HRM/way rewards distributed)

Equity Theory

A theory of motivation that focuses on people's perceptions of the fairness of their work outcomes relative to, or in proportion to their work inputs. -relation between outcomes/inputs -made in 1960's by J Stacy Adams -relative levels of outcome important to determining motivation, not absolute -compare outcome-input rating with one of referent -referent= another person or group perceived to be similar to oneself or oneself in previous jobs or expectations on ratio -perceptions are key

Types of training

Classroom Instruction & On-the-job training

Learning Theories

Increasing employee motivation & performance by linking the outcomes that employees receive to the performance of desired behaviors & the attainment of goals -performance outcome link -learning= relatively permanent change in knowledge or behavior that results from practice and experience (in org when people perform behaviors to receive certain outcomes) ex. come in earlier to receive pay raise -training can spur learning in all kinds of jobs/org

motivation

Psychological forces that determine the direction of a person's behavior in an organization, a person's level of effort, and a person's level of persistence. -central to management because explains why people behave the way they do

Clan Control

The control exerted on individuals and groups in an organization by shared values, norms, standards of behavior, and expectations. -dual function of keeping org members goal-directed while open to new opportunities because takes advantage of power in org culture -mana can influence kinds of values/norms that develop in org (determines how people behave)

Equity

The justice, impartiality, and fairness to which all organizational members are entitled. -exists when a person perceives his own outcome-input ratio to be equal to a referents -even if someone makes more $, seen as proportional still if inputs proportional to outcome made -when equality exists= people motivated to continue contributing their current levels of inputs to their organization to receive current level of outcomes -high outcomes= by high inputs

Organizational Design

The process by which managers create a specific type of organizational structure and culture so that a company can operate in the most efficient and effective way -Challenge= design structure and culture that 1. motivates mana/employees to work hard and dev supportive job behaviors and attitudes 2. coordinate actions of employee/group/function/division so they work effectively and efficiently -manager designs organizational structure to fit factors affecting the company and causing the most uncertainty (contingency Theory), no best way to design an organization

Strategic Human Resource Management

The process by which managers design the components of an HRM system to be consistent with each other, with other elements of organizational architecture, and with the organization's strategy and goals. -objective= dev of HRM system that enhances org's efficiency/quality/innovation/responsiveness -some adapt six sigma quality improvement plans as part of SHRM (ensure org's products are as free of defects/errors as possible) ex. GE/Whirlpool/Motorola -only effective if top management committed, employees motivated, needs to be demand for products (if top not committed= may not devote time necessary or resources for it to work)

Organizing

The process by which managers establish the structure of working relationships among employees to achieve goals efficiently and effectively

Organizational Culture

The shared set of beliefs, expectations, values, and norms that influence how members of an organization relate to one another and cooperate to achieve organizational goals

360 performance appraisal

a variety of people (manager/peers/coworkers/superiors/subordinates/clients) appraise managers performance -feedback based on evaluations from these multiple sources -has to be trust in an org for this to be effective -focus on behaviors, need to carefully select appropriate raters -appraisals more honest when anonymous -willing to modify appraisals systems if unintended problems arise -think about extent 360 model appropriate for certain jobs -advances in tech= more effective in communicating feedback ex. ImproveNow= online questionnaire, sends feedback to managers

5. Labor Relations

activities managers engage in to ensure they have effective working relations with labor unions that represent employee interests -union ensures interested fairly represented in the org -Important employment legislation: Fair Labor Standards Act (1938)= no child labor/minimum wage/overtime pay/maximum working hours Equal Pay Act (1963) Occupational Safety and Health Act (1970)= ensure workplace safety

4. Punishment

administering an undesired/negative consequence when dysfunctional behavior occurs -used when they don't have control over what's reinforcing behavior or can't afford time to do extinction -behaviors= illegal/unethical/sexual harassment ex. of punishments= verbal reprimands/pay cut/suspension/demotion/fired (can cause resentment/loss of self respect/desire for retaliation) -only should be used if necessary

Input

anything a person contributes to his or her job or organization ex. time/effort/education/experience/skills/knowledge/work behaviors -necessary to achieve org goals, motivate employees to contribute input with outcomes -mana ensure employees get output they desire when they make valuable contributions to the org (aligns employee and org interests because both benefit)

Outcome

anything a person gets from a job or organization ex. outcomes of autonomy/responsibility/accomplishment feeling/pleasure of doing something interesting (intrinsic behavior) ex. outcomes of improving lives or wellbeing of others (prosocial behavior) ex. outcomes of pay/job security/benefits/vacation (extrinsic behavior)

extrinsically motivated behavior

behavior performed to acquire material or social rewards or to avoid punishment, source of motivation is consequences of behavior, not behavior itself ex. carsales people motivated by receiving commission/lawyer motivated by high salary and status/factory worker motivated by secure income -People can be I/E or both ex. top mana= achievement from managing large org plus strive to receive targets for bonus check ex. nurse= enjoys taking care of patients plus likes secure job with good benefits

Pay Structure

clusters jobs into categories reflecting their relative importance to the organization and its goals, levels of skill required, and other characteristics managers consider important -pay range established for each job category (ind jobholders pay determined by performance/seniority/skill level) -large US org pay CEO/top mana more than europe and japanese orgs (in US pay difference between low employees and high mana greater) -US CEO makes 360X the average hourly worker makes -more people asking if pay structure with huge pay differential is ethical (millions in severance packages)

Organizational Structure

a formal system of task and reporting relationships that coordinates and motivates and determines how organizational members work together to achieve organizational goals

Objective vs Subjective Appraisals (many mana use both)

Objective Appraisals= based on facts/likely to be numerical ex. # of cars sold/# of meals prepped/# of times late -use when results appraised (easier to quantify) -Subjective Appraisals= based on manager perception of traits/behaviors/results (because based in perception= always a chance for inaccuracy) -Popular Subjective Measures= graphic rating scale/behaviorally anchored rating scale/behavior observation scale -Graphic Rating= performance assessed on continuum with specified intervals -BARS= scale with defined points with examples of behaviors -BOS= how often specific behaviors performed -forced rankings= supervisors must rank subordinates and assign them to different categories according to their performance (subjective) ex. Lending Tree, 1-3 system, used to reward high performers but also layoffs -adv= help ensure HR decisions based on merit/top performers recognized and all employees know where they stand relative to others -Disadv= demoralizing/lead to comp env/uncooperative/favoritism/predetermined categories sometimes don't match distribution of performance ex.force 20% into below average when most average, only 5-10 % poor really -when applied on regional basis= cause conflict/political maneuvering by management -popularized by GE (no longer used now)

The Job Characteristics Model

-by Hackman/Oldham -explains how managers can make jobs more interesting and motivating -describes likely personal and organizational outcomes from enriched and enlarged jobs -5 characteristics determine how motivating job is -can lead to increased performance and satisfaction or absenteeism and turnover

1. Characteristics of Organizational Members

-ultimate source of org culture -attract/select/retain people who have different values/personalities/ethics -people attracted to an org whose values match theirs, org selects people who share its values, people who do not fit in leave -people in org become more similar= values of org more clear-cut= culture becomes distinct (may hinder ability to adapt/respond to changes in environment because org's values become so strong and cohesive that members begin to misperceive the environment) ex. Ford/Google/Apple/Microsoft have strong sets of values (emphasize innovation and hard work), be careful success doesn't lead members to believe they're the best ex. CEO of digital equipment= said personal cpu just toys, company doesn't exist anymore

Managing Change

4 steps 1. assess the need for change 2. deciding on the change to make 3. implements the change 4. evaluating the change

Basing merit pay on individuals/group/org performance

-ind performance= dollar value of items sold/# of product assembled/lawyer's billable hours) can be accurately determined= individual motivation highest when pay is on individual performance -when ind perform can't be determined accurately (team of computer programmers)= need group/org plan -attainment of goals by members working together (small construction org)= group or org plan appropriate -can combine elements of individual plan+ group or org plan to motivate individual and motivate ind to work well with others ex. Lincoln Electric= ind plan + bonus based on org performance (distributed based on contributions to org/attendance/cooperation)

1. Maslow's Hierarchy of Needs

-Abraham Maslow -seek to satisfy 5 basic kinds of needs= physiological/safety/belongingness/esteem/self actualization -hierarchy of needs= most basic/compelling needs at the bottom and lowest level of unmet needs in hierarchy is the prime motivator of behavior, one level of need is motivational at a time -need hierarchy is unsupported by research -by doing whats goof for org= employees receive outcomes that satisfy needs (org/employee interests aligned) -citizens of different countries might differ in needs they seek to satisfy in work ex. Greece/Japan= safety needs ex. Sweden/Denmark/Norway= belongingness need ex. less developed countries= physiological/safety needs are prime motivators ex. wealthy countries= needs on personal growth/accomplisment (esteem/self actualization)

1. Operant Conditioning Theory

-BF Skinner -people learn to perform behaviors that lead to desire consequences and learn not to perform behaviors that may lead to undesired consequences -performance of specific behaviors to attainment of specific outcomes -4 tools to motivate performance/prevent absenteeism (positive reinforcement/negative reinforcement/extinction/punishment)

4. McClelland's need for achievement/affiliation/power

-David McClelland -achievement= extent to which an individual has a strong desire to perform challenging tasks well and meet personal standards of excellence (people set clear goals and like to receive performance feedback) -affiliation= extent to which an individual is concerned about establishing and maintaining good interpersonal relations, being liked, having people around him get along with each other -power= extent to which an individual desires to control/influence others -each need present in each of us to some degree -importance depends on position one occupies ex. achievment/power= good for 1st/mid line manager ex. power= good for top manager -too much affiliation= try too hard to be liked rather that keep performance high -studies find this applicable in US= other countries (India/New Zealand)

Goal Setting Theory

-Locke/Latham -focused on motivating workers to contribute their inputs to their jobs and orgs , identifying types of goals that are most effective in producing high levels of motivation and performance and explaining why goals have that effect -goals people try to attain= prime determinants of motivation and performance -goal= what a person is trying to accomplish through his efforts and behaviors ex. Neimen Marcus= goal is to meet sales goal, pursue market share, profitability increase -goals need to be specific/difficult -specific= often quantitative (sales goal/time line/percent) -difficult= hard but not impossible to attain -subordinates need to be committed to meeting goals -subordinates participate in making goals= boosts acceptance/commitment to goals -employees need to receive feedback (performance appraisal and feedback HRM) -goals motivate people to contribute more inputs to job ex. work harder for $500 sales goal than $200 -goals cause people to be more persistent when they run into difficulties ex. continue to sell even on slow day -goals affect motivation by helping people focus inputs in right direction (what to focus attention on/develop action plans to reach goals/ strategies, timetables,schedules) -specific/difficult goals may detract performance in certain conditions (when people have complicated/challenging tasks that require a lot of learning or work that is creative and uncertain) -once task no longer complicated= can do goals

Classroom Instruction

-acquire knowledge/skills in classroom setting -can be within org or outside it (courses at local college) -some orgs establish own form instructional divisions ex. Disney= Disney University -use videos/roleplaying/written materials/lectures/group discussions -videos= demonstrate appropriate and inappropriate job behaviors ex. video of salespeople dealing with loud or angry customers -roleplaying= trainees either directly participate or watch others perform job activities in simulated setting ex. McD- Hamburger University -Simulations= used for complicated jobs that require exhaustive amount learning/where errors carry high cost/key aspects of job situation duplicated as closely as possible in artificial setting ex. air traffic controller

Salary Increase or Bonus

-bonuses have more motivational impact because: 1. salary based on performance levels and cost of living- salary based on factors unrelated to current performance 2. current salary increase may be affected by other factors besides performance (cost of living increases/market adjustments) 3. salary levels tend to vary less than performance levels do -bonuses give managers more flexibility in distributing outcomes (can be reduced or increased based on org performance year to year and employee to employee) -amount based directly on performance (bonus) ex. Nucor Org -employee stock options= financial instruments that entitle the bearer to buy shares or org's stock at certain price during certain period under certain conditions -used to attract high level management (has to hit target then can use stock at exercise price) -use to motivate employees to work in the future for good of org because stock only has value if org keeps doing well ex. used by high tech start ups and dot coms to make employees leave jobs for this one -stock stuff can lead to unethical behavior (artificially inflate value of stock to increase stock option value)

Types of Development

-can include classroom and OTJ -also included varied work experience and formal education

3. Performance Appraisal and Feedback

-complements recruitment/selection/training/development -performance appraisal= evaluation of employees job performance and contributions to the org -performance feedback= process through which mana share appraisal info with subordinates, give subord opportunities to reflect and develop plans for the future with them -appraisal can take place without feedback (most do feedback because contribute to employee motivation/performance) -gives mana info on which to base HR decisions (pay raises/bonus/promotions/job moves) -appraisal determines which workers candidates for training/development and in what areas -feedback makes good subordinates feel appreciated, bad know they need to improve

Guidelines in punishment

-downplay emotional element (punish behavior not person himself) -punish as soon as possible after occurs and make sure negative consequence is a source of punishment for the individual (need to know why they are being punished) -avoid punishment in front of others (hurt self esteem/lower esteem/uncomfy) *can let others know serious infraction has been punished to prevent future serious infractions/teach people that behavior is unacceptable* -often confuse negative reinforcement and punishment -negative reinforcement used to promote performance of functional behaviors, punishment stops performance of bad behaviors -negative reinforcement entails removal of negative consequence after functional behavior, punishment administers negative consequences after bad behavior

Identifying the right behaviors for reinforcement

-have to reinforce behaviors truly functional for the org -choose behaviors over which subordinates have control (need freedom/opportunity to perform behaviors being reinforced) -crucial that these behaviors contribute to org effectiveness

Honesty in Recruiting

-mana worry if honest on adv/disadv of job= won't be able to fill position or have fewer or less qualified applicants -painting rosy picture of job and org= not wise recruiting strategy (more effective when honest) -Realistic Job preview= honest assessment of adv/disadv of job and org (reduce number of new hires who quit when jobs don't meet expectations/applicants decide for themselves if job right for them) ex. telling secretary not a lot of room for promotion before hire

Formal Education

-many large orgs reimburse employees for tuition expenses while obtaining advanced degrees (effective way to develop employees who take on new responsibilities and more challenging positions) ex. corp send mana to executive development programs (exec MBA program, experts teach mana the latest in business and management) -to save time/travel expenses= long distance learning ex. videoconferencing tech= Harvard/Michigan/Babson teach on video screens in corporate conference rooms -business schools customize courses/degrees to fit developmental needs of employee in particular org/geographic region -advance education with online degree programs

Benefits

-org legally required to provide certain benefits (workers compensation- helps if can't work due to work related injury or illness/SS- gives assistance to retirees/Unemployment insurance- gives financial assistance to workers who lost jobs due to no fault of their own) -other benefits (health insurance/dental/vacation/pension/life insurance/flexible hours/company daycare/employee assistance and welfare programs -Health Reform Bill (2014)= employers with 50+ employees face fines if don't provide health care -some orgs= top mana determine which benefits to give employees and offer same package to everyone -cafeteria style benefit plan= lets employees choose benefits they want (deal with employees who can't use all benefits given like they dont have kids) -more benefits and incentives to promote employee wellness (90% offer to people who take steps to improve wellness) -fam-friendly benefits= on site child care/ability to telecommute to take care of sick kids/provisions for emergency back up child care) -same sex benefits retain valued employees

Example of Merit Pay Plan

-piece rate plan= individual based merit plan, employee pay based on number of units each individual produces ex. Lincoln Electric= info tech simplified admin of this plan -commission pay= individual based merit plan, base pay on a percentage of sales ex. real estate/department stores -scalon plan= org based merit plan, focuses on reducing expenses or cutting costs, members of org implement cost cutting strategies because percent of cost savings distributed to employees -profit sharing= org based merit plan, employees receive share of org's profits -Japanese management use plans in favor of rewarding seniority (now doing more merit because more motivational) ex. Tokio Marine/Hissho Iwai/Site Design)

Self/Peer/Subordinates/Clients

-self= managers supplement appraisals with employees assessment of themselves -peer= provided by employee's coworkers, especially when subordinate works in a group on a team, feedback can motivate team members and provide info to manager -subordinates= appraise manager's leadership and performance -clients= assess employee in terms of responsiveness to customers and quality of service -disadv= self (can inflate self appraisals especially if org is downsizing and worried on job security) subordinates (mana may fail to take needed but unpopular action because scared of bad appraisals) -issues can be mitigated to extent there are high levels of trust in an org

Effective Performance Feedback

-to generate useful info to feedback= use formal/informal appraisals -formal appraisals= conducted at set times during the year based on performance dimensions and measures specified in advance ex. salespeople= evaluated twice a year on sales and customer service -used in large orgs on fixed schedule dictated by org policy (every 6 months/year) -integral part= meeting with managers/subordinates when given feedback (know where they're doing good/bad and how to improve) -large orgs update procedures/train low level managers to do this because valuable -informal appraisals= unscheduled appraisal of ongoing progress and areas for improvement (supplements formal appraisals) -meet as need arises or when job duties/responsibilities/goal changes (see how they're handling new responsibilities -mana often dislike providing feedback (especially when negative)

Varied Work Experience

-top mana need expertise in variety of functions/products/markets -make sure employees with potential have wide variety of job experiences (some in line positions/others in staff positions) -broaden employee horizons and help them think big picture ex. 1-3 year stints overseas=give mana international work experience (helpful because more orgs are global, need to understand culture in different countries) -mentoring= experienced org member provides advice/guidance to less experienced member (help mana to seek out assignments that will contribute to their development, sometimes informal) -formal mentoring= valuable ex. Sachs/Deloitte/Time Inc (mandatory, ensures mentoring is happening, structures the process, receive training and match people for meaningful developmental relationships, orgs can track reactions and assess benefits, ensure diverse members of org receive mentoring, when they lack mentors= progress/advancement in org hampered and leads to career dissatisfaction and attrition) -mentoring benefits all kinds of employees in all kinds of work (helps mentors and proteges have personal development)

Matrix/Product Team Designs

-used when info tech and customer needs changing rapidly, env is uncertain, even divisional structure doesn't give managers enough flexibility in making decisions in response to things -most flexible organizational structures

Guidelines for giving effective feedback

1. Be specific and focus on behaviors or outcomes that are correctable and within workers ability to improve ex. dont tell salespeople they're too shy, give them behaviors to do like greeting people and volunteering to help customers 2. Approaching performance appraisal as an exercise in problem solving and solution finding ex. rather than criticize, help employee determine why the report is late and identify ways to better manage time 3. express confidence in subord's ability to improve ex. dont be skeptical, be confident 4. provide performance feedback both formally and informally ex. pointing out when they do good when they do it plus formal 5. praise instances of high performance and areas of a job in which a worker excels ex. discuss positives and negatives 6. avoid personal criticisms/treat subord with respect ex. treat them as professional/acknowledge their expertise 7. agree to timetable for performance improvements ex. meet again in 1 month to see if improvement made`

Pay Level

a broad comparative concept that refers to how an organization's pay incentives compare, in general, to those of other organizations in the same industry employing similar kinds of workers -high wages= ensure an org is able to recruit/select/retain high performers, raise costs -low wages= give org cost advantage, undermine org ability to select/recruit high performers or motivate current employees -both may lead to inferior quality or inadequate customer service -in determining pay level= mana should take into account organizational strategy ex. high pay levels= can not pursue low cost strategy (could be worth added costs in org who has comp adv in quality and customer service) ex. Days Inn= low cost strategy/low pay

Paper and Pencil Tests

administered in hard copy or electronic form -ability tests= assess extent applicants possess skills needed for job performance (verbal comprehension/numerical skills) ex. autoworkers at GM/Chrystler/Ford (read/math) -Personality Tests= measure traits/characteristics relevant to job performance (use is controversial) ex. retail- test to determine how trustworthy -some say honesty test can be faked -mana need sound evidence that tests are a good predictor of performance of job (without this= risk costly discrimination lawsuits)

2. Self Reinforcement (self management of behavior)

any desired/attractive outcome or reward people give to themselves for good performance (accomplishment/dinner/movie) -then managers don't have to spend as much time motivating and controlling behavior with consequences -used when employees highly skilled/responsible for creating new goods ex. Google (flexible/risk takers/fail and learn/1 day a week to do own projects)

Trait Appraisals

assess subordinates on personal characteristics relevant to job performance (skills/abilities/personality) ex. factory worker= appraised on ability to use equipment ex. social worker= appraised on empathy/communication skills -disadv= possessing certain characteristics does not mean it will be used on the job and result in high performance ex. factory worker has great skills but performs low because low motivation -disadv= traits do not always show direct association with performance (may view this as unfair/discriminatory) -disadv= do not enable mana to give feedback employees can use (focus on enduring characteristics= employees can do little to change behavior) -use trait appraisals only when they can demonstrate that assessed traits accurate/important indicators of job performance (what they are like)

Intrinsically Motivated Behavior

behavior that is performed for its own sake; the source of motivation is actually performing the behavior, and motivation comes from doing the work itself -sense of accomplishment/achievement from helping org achieve goals and gain comp adv -usually from jobs that are interesting/challenging/high on 5 characteristics (job characteristics model) ex. teacher who loves teaching kids/computer programmer who loves solving problems/photographer who loves being creative -lacking intrinsic motivation can lead to people making major changes in life

prosocially motivated behavior

behavior that is performed to benefit or help others ex. teacher= wants to help kids with learning disabilities overcome challenges and keep up on child developmental research to make them more effective ex. surgeon= strong desire to help patients regan health -high prosocial + high intrinsic = beneficial for job performance

3. extinction

curtailing the performance of dysfunctional behavior by eliminating whatever is reinforcing them ex. long non-work talks= manager stops the non work conversations, not reinforced with pleasurable convo so employee stops

2. Negative reinforcement

eliminate/remove undesired outcomes once the functional behavior is performed -undesired outcomes= (-) reinforcers ex. nagging/criticism/unpleasant assignments/threat of job loss) ex. threaten salespeople job to get them to sell more -can create a negative org culture and unpleasant work environment and resentment

2. Management by Objectives

formal system of evaluating subordinates on their ability to achieve specific organizational goals or performance standards and to meet operating budgets -use to evaluate if goals being achieved

References

former employers/other knowledgeable sources who know skills/abilities/personal characteristics -ind provide candid info on applicant (sometimes people leave out the negative) -used at the end of selection process to confirm hire decision -mana way of giving negative reference= recent lawsuits who felt unfairly denigrated/privacy invaded because bad references (can put people at risk in jobs where safety and lives at stake)

2. Training and Development

help ensure org members have knowledge/skills to do job effectively and take on new responsibilities/adapt to changing conditions -training= teaching org members how to perform their current jobs and helping them acquire knowledge and skills to be effective performers (more with lower levels of org) -development= building the knowledge/skills of org members so they can take on new responsibilities and challenges (more with professionals and managers) -Needs assessment= determine which employee needs training or development and what type of skills/knowledge they need to acquire

3. Valence

how desirable each of the outcomes available from a job or an org is to a person -mana need to determine which outcomes have high valence for them and make sure they're provided when people perform at a high level ex. enterprise= pay/autonomy/responsibility/opportunity for promotion= valent outcomes -has potential to reduce turnover

1. vicarious learning (observational learning)

learner becomes motivated to perform a behavior by watching a model performing behavior and being positively reinforced for it ex. salespeople/medical school students/law clerks/nonmanagers learn by observing experienced members of the org -imitate behaviors of models who are more competent/experts in the behaviors, have high status, receive attractive reinforcers, friendly conditions: -learner observes model/learner accurately perceives behavior/learner remembers behavior/learner has skills and abilities to do behavior/learner sees that model positively reinforced for behavior

Behavior Appraisals

managers assess how workers perform job (actual actions/behaviors workers exhibit, what they do) ex. social worker= evaluate extent they look clients in the eyes when talking to them/express sympathy/refers them to counseling related to what they're dealing with -useful when how workers perform jobs is important ex. how teachers teach kids/methods used -adv= give employee clear info on what they're doing right/wrong and how they can improve (more likely to lead to improved performance because behaviors easier to change

Pay and Motivation

motivates people to perform behaviors to achieve org goals and motivates people to join or stay in an org -expect theory= pay is outcome with high valence, association between performance and pay must be high for motivation -need= pay satisfies need -equity= pay distributed in proportion to inputs -goal= pay linked to attainment of goals -learning= pay contingent on performance of organizationally functional behaviors -Merit Pay Plan= compensation plan, bases pay on performance (can't use as much in touch economic times when people laid off and benefits cut) ex. Rockwell Collins= gave small giftcards in and economic time to still show benefits and recognize high performance

Expectancy Theory

motivation is high when workers believe that high levels of effort leads to high performance which leads to attainment of desired outcomes - by Victor Vroom (1960's) -popular theory of work motivation (focuses on all 3 parts of the motivation equation) -3 factors determine motivation (expectancy/instrumentality/valence)

2. Instrumentality

perception about the extent to which performance at a certain level results in the attainment of outcomes -must be high for motivation to be high -managers link performance to desired outcomes (high performers receive more) and clearly communicate this linkage to subordinates ex. immigrants in doughnut shop in CA (high performance= income/comfy existence/security/autonomy in small business) ex. link pay and promotion to high performance

interpersonal justice

perception of fairness of interpersonal treatment he receives from whoever distributes outcomes ex. high when mana treat subordinates with respect= high motivation

procedural justice

perception of fairness of procedures used to determine how to distribute outcomes in org ex. procedure (performance appraisals) for outcomes unfair= procedural justice low and motivation low

informational justice

perception of the extent to which his manager provides explanation for decisions and procedures used to arrive at them ex. mana explains how performance is appraised= high motivation

1. Expectancy

person's perception about the extent to which input (effort) results in certain level of performance -determine if they believe if high input= high performance -high expectancy= believe high input leads to high performance -expectancy must be high for motivation to be high -boost expectancy by mana expressing confidence in subordinates or by providing training so people have expertise for high performance and higher autonomy/responsibility as they gain experience (freedom to do what it takes to perform highly) ex. best Buy= extensive training online and in meetings ex. enterprise= give employees more autonomy to help profitability

Unions

represent workers interest in situations where one stakeholder benefits and hurts another (employees) -National Labor Relations Act (1935)= legal for workers to organize into unions to protect interests (established the national labor relations board to oversee union activity an judge unfair labor practices, certification elections determine if organizational employees want a union) -vote to have union represent them because: wages/working conditions/not treated with respect by mana/working hours/need job security and safe working environment/hard to communicate concerns to management/POWER (better than individual) -reluctance to join because perception that union leaders corrupt (because costs money/doesnt do much good/dont want to be forced into doing something they dont want to do like striking -unions can be positive or negative and impair org effectiveness -In 1935 (35% union) -in 2015 (11% union) -American Federation of Labor congress of industrial org (56 unions, 12.5 million people) -union influences in manu/heavy industries is on the decline -6.7% of private sector are union members -35% gov workers in union -unions in low wage end are growing (garbage collectors/poultry plant/janitors) -union membership and leadership becoming more diverse (before white men only) -women= 45% unionized workers

Organizational Behavior Modification

the systematic application of operant conditioning techniques to promote the performance of organizationally functional behaviors and discourage the performance of dysfunctional behaviors -improves productivity/efficiency/attendance/punctuality/safe work practices/customer service -works best for behaviors that are specific and objective and countable (attendance/punctuality/meeting sales/putting phones together) -lack of relevance to certain work behaviors or questioned it on ethical grounds -critics say= overcontrolling/robs workers of dignity, individuality, freedom of choice, creativity -supporters say= effective means of promoting organizational effiency

Integrating Roles

a role whose only function is to increase coordination and integration among functions or divisions to achieve performance gains from synergies -usually senior mana who can envision how to use functions resources to obtain synergies is the role ex. Pepsico= Amy Chen coordinated to create program to deliver meals during summer to kids from low income family (food for good) -needed when organization is more complex with lots of divisions

Task Forces

a committee of managers from various functions who meet to solve a specific, mutual problem (also called ad hoc committee because temporary and meets on regular basis or only a few times) -when more than 2 functions share many common problems= direct contact/liason role may not provide sufficient coordination -members responsible for reporting to their departments on the issues addressed and the solutions recommended -when problem solved= task force no longer needed, members return to their normal roles in their departments or assigned to another task force -also people perform normal duties while serving on task force ex. representatives from mrkt/R&D/manu meet to discuss a product launch

2. Task Identity

the extent to which a job requires a worker to perform all tasks necessary to complete job (from start to end of production process) ex. increased task identity for craftsworker who turns wood to desk than a worker who does one operation to assemble a flat screen TV (one of many operations needed)

Feedforward control

allows managers to anticipate problems before they arise (at input stage) ex. giving stringent product specifications to suppliers in advance (controls quality of inputs received) ex. screening job resumes -IT to keep in contact with suppliers and monitor their progress -development of management information ystems promote feedforward controls

Background Information

get from job apps and resumes ex. highest level of education/college majors and minors/type of college attended/years and type of work experience/foreign language -screen out applicants who lack key qualifications (college degree) -determine who is more qualified (MBA preferable to BS) -background checks to verify info employees provide (finding more inaccuracies lately) -30% of applicants provide some form of false info on employee history and can also reveal prior convictions

Job Enrichment

increasing the degree of responsibility a worker has over his or her job -empower workers to experiment to find better ways to do job -encourage workers to develop new skills -allow worker to decide how to do work and take responsibility on how to respond to unexpected situations -allow workers to monitor and measure their own performance -more involvement in their job= more interest in the quality of goods they provide -more likely to increase degree of flexibility if doing this (and self-managed teams) -simplification= more formal structure

Behavior Control

method of motivating employees -organizational structure will only work as designed if manager also establishes control systems that motivate/shape employee behavior in ways that match structure -groupings/effective chain of command 3 mechanisms: 1. direct supervision 2. management by objectives 3. rules and standard operating procedures

2. Organizational Ethics

moral values/beliefs/rules that establish the appropriate way for an org and its members to deal with each other and with people outside the org -ethical values rest on principles stressing the importance of treating org stakeholders fairly and equitably -mana constantly making choices on ethical thing to do -det how members manage situations and make decisions

Organizational Control helps obtain

the 4 building blocks of competitive advantage

1. Recruitment and Selection

-Recruitment= includes all the activities managers engage in to develop a pool of qualified candidates for open positions -Selection= process by which manager determines the relative qualifications of job applicants and their potential for performing well in a particular job -before those= managers need to do HR Planning and job analysis

Control Systems and IT

-new forms of IT facilitate the flow of accurate and timely information up and down the organizational hierarchy and between functions and divisions -employees routinely feed information into company's info systems ex. scan of purchased clothes tells what needs to be reordered -measure performance at each stage in process of inputs to goods

External and Internal Recruitment

-use these plus supplement by recruiting over internet

Product Team Structure

Employees are permanently assigned to a cross-functional team and report only to the product team manager or to one of his direct subordinates, empowered to bring new and redesigned products to market -cross-functional team= group of mana brought together from different departments to perform org tasks -artificial barriers between departments gone/instead of narrow focus on department goals, general interest in org goals ex. Sealy used after sales decreased, designed new mattress and broke sales record -heads of functions have informal advisory relationship with product team (counsel/help/share knowledge/provide new tech developments) -help gain comp adv in fast changing org env ex. Newell brands moved to product team structure to speed up production innovation (better product portfolio choices/new marketing, innovation in approaches)

Control Systems

Formal target-setting, monitoring, evaluation, and feedback systems that provide managers with information about how well the organization's strategy and structure are working. -effective control systems= alert managers when something is wrong/give manager time to respond to opportunities and threats 3 characteristics of effective control systems: 1. flexible so managers can respond to the unexpected 2. accurate information on organizational performance 3. info given to managers in timely manner because need the new info for decisions

Ways to group tasks into jobs

Job enlargement and job enrichment

External Recruiting

Looking outside the organization for people who have not worked at the firm previously -means they use= ads in the newspaper/magazines/open houses for students at HS or college or onsite at org/career fair/job fair/recruitment meetings -large orgs send teams of interviewers to college campuses -informal means= current employee tell friends on openings/recommend them -some use employment agencies/some take walk-ins -recruiting not easy because jobs open require skills/abilities job hunters don't have -more using the internet to connect with each other on jobsites ex. Jobline.com= Coke/Cisco/Ernst & Young/Telia -Adv= access to potentially large applicant pool, being able to attract people who have skills/knowledge/abilities an org needs to achieve its goals, able to bring in newcomers with fresh approach to problems and up to date on tech -Disadv= high costs/employees recruited lack knowledge on the inner workings of the org (may need lots of training)/uncertainty if they'll be good performers -brings in new talent when org is performing poorly

Organizational Change

Movement of an organization away from its present state and toward some desired future state to increase its efficiency and effectiveness -org can't change/adapt in response to changing env unless it has effective control of activites -need to balance 2 opposing forces in control process (need to make operations routine and predictable/need to be responsive to need to change and think on their feet) -need autonomy to depart from routines as necessary -highest performing org= ones constantly changing ex. UPS/Toyota/Walmart -UPS entered air express parcel market, bought chain of mailbox stores and consulting service, orion on board tech increased efficiency of delivery process= saves money and reduces driving route

Controlling

Process where managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals -monitor if strategies and structure working as intended, how it can improve, what to change if not working -control is not just reacting to events after they occurred (also keep org on track/anticipate events/changing org to respond to opportunities and threat)

Organizational Architecture

the combination of organizational structure, culture, control systems, and human resource management systems that together determine how efficiently and effectively organizational resources are used

Divisional Structures: Product/Market/Geographic

used to overcome problems associated with functional structure -org structure composed of separate business units or divisions, within which are functions that work together to produce a specific product for specific customers (used with large orgs) -goal= create smaller, more manageable units within org 3 forms: 1. product= organize divisions according to type of product provided 2. geographic= organize divisions according to area of the country/world they operate in 3. Market= organize divisions according to type of customer they focus on

Centralization/Decentralization of Authority

-decentralizing authority= giving lower level mana/nonmana employees the right to make important decisions on how to use organizational resources (if upper level management do this and only manage by exception= problems of slow and distorted communication decrease) -fewer mana needed because their role is not to make decisions but to act as coach/faciliatator/help other employees make decisions -employees better able to recognize and respond to customer need -keeps org flexible even as org becomes taller -disadvantage of too much decentralization= if functions have too much decision making authority, then they pursue their own goals at the expense of org's goals ex. mana in R&D so focused on making best product, don't realize its so expensive only few will or can buy -disadv= cause lack of communication among functions/prevents synergies of cooperation= performance suffers -top mana must balance centralization and decentralization of authority or org suffers -if stable env/have well understood tech/producing stable products= no pressing need to decentralize, top mana can control decisions -if changing env/high tech org with state of the art products= empower employees for decisions to keep up with changes

Organizational Culture

-2nd principle issue in organizational design -impacts work behavior/attitudes of ind and group because members adhere to shared norms and expected standards of behavior -employees internalize org values and let them determine their actions and decisions -values= shared standards that its members use to evaluate whether they helped company achieve vision and goals ex. excellence/stability/predictability/profitability/economy/creativity/morality -norms= prescribe kinds of shared beliefs/attitudes/behaviors members should observe and follow -informal but powerful rules, can be equally constraining as formal written rules in company handbook ex. working hard/respecting tradition and authority/being courteous/conservative/cautious/team player/taking risks/honest -can also prescribe certain specific behaviors ex. keep desk clean/wearing jeans on fridays/bring doughnuts -norms help company achieve values ex. new cpu company= values of excellence/innovation may try to attain high standard by adopting norms of being creative/taking risks/work hard now/look long term for rewards (entrepreneurial culture in company) ex. bank= values of stability/predictability may emphasize norms of cautiousness/obedience to authority (stable, conservative culture in company) -over time members of an org learn how to perceive events at work and respond to them reflecting values and norms -strong org culture= employees focus on what's best for org in long run (decisions oriented to helping org perform well) ex. teacher spends personal time coaching students/R&D scientists work 80 hours to speed up late projects

Strong adaptive culture v weak inert culture

-Adaptive Cultures= those whose values/norms help an org to build momentum to grow/change as needed to achieve its goals and be effective ex. IBM/UPS/Microsoft/3M -invest in their employees (demonstrate long term nature of employee relationship/try to avoid layoffs/long term career paths for employees/spend more money on training and development to increase employee value to org) -receive rewards linked directly to performance + performance of org as a whole (employee stock ownership plans where workers as a group can buy a lot of stock) -own stock= additional incentive to develop skills that allow them to perform highly/search actively for ways to improve efficiency and quality and performance -emphasis on entrepreneurship/empowers employees -Inert Cultures= those whose values/norms fail to motivate or inspire employees, lead to stagnation and failure over time -some org dev cultures with values that do not include protecting and increasing the value of HR as goal (based on short term employment according to needs of org/minimal investment in employee who performs simple and routine tasks) -not rewarded on performance= little incentive to improve or invest in org -poor working relations (values of noncooperation/laziness/output restriction) -employees content to be told what to do/little incentive to perform beyond minimum work requirements (hierarchal auth and close supervision where hard to adapt to changing environment)

3. Compare actual performance against chosen standards of performance

-If performance higher than expected= mana raise standards for next period to challenge subordinates ex. mana at manu company constantly raise standards to motivate for reduced costs and high quality -if performance too low= must decide whether to take corrective action (easy to take corrective action when reasons for low performance can be identified) ex. high labor costs= fix by looking for overseas suppliers/invest more in tech/implement cross functional teams -reasons for poor performance hard to identify ex. could be changes in env (new global comp/recession/increase in interest rates) ex. could be within org (R&D underestimate issues with product/extra research costs)

Tall and Flat Organizations

-as org grows in size= hierarchy of authority lengthens (organizational structure taller) -tall org= many levels of auth relative to company size -flat org= fewer levels relative to company size -taller org= more problems with less flexibility, slow manager responses, communication issues (long time for decisions from upper management to reach mana further down/long time for uper management to hear how decisions worked) -upper mana may have to verify lower managers following orders with written confirmation -middle mana= know they'll be held accountable for their actions (devote too much time to process of making decisions or avoid responsibility) -communication problems= distortion of commands/messages being transmitted up and down the hierarchy (causes different managers to have different interpretations) -distortion can be accidental (mana interprets from their own functional perspective) -distortion can be intentional (mana low in hierarchy decide to interpret info in way that increases personal advantage) -tall hierarchies usually indicate an org employing many managers (expensive because manager salaries/benefits/offices/secretaries) ex. IBM/GM pay managers millions a year

4. Evaluate the results and initiate corrective action (make changes) if standard is not being achieved

-can learn a lot in this step -try to change how work activities performed to solve problem (sometimes work standard too high, too optimistic or impossible to achieve= adopt more realistic standards) -to raise performance= change how resources utilized or shared ex. more advanced tech/more training/buy inputs abroad/restructure or reengineer work processes ex. control system= thermostat (simple= entirely self contained and target easily measureable) -estimating targets and designing measuring system is hard because high level of uncertainty in org env (need system to alert them to problems quickly) -not concerned with bringing performance up to predetermined standards= push standards forward to encourage employees to raise perfromance ex. GM paid $900 bc ignition switch defect killed 124 people and financial toll overall was $2 B

Organizational Control Quality

-cars within each price range compete in features/design/reliability -determine quality of goods because gives managers feedback on product quality ex. carmakers measure the # of customer complaints and number of new cars returned for repairs ex. schools measures # of drop outs and scores on national tests over time -control system can monitor quality so can consistently improve (can sometimes lead to challenges/frustrations/lost productivity)

Organizational Control Responsiveness

-control system like CRM (evaluate how well employees handle customer contact) -helps mana know where skill/training/new procedures can help jobs be performed better -when employed know they're monitored= more incentive to be helpful and more consistent with customers ex. caterpillar= introduced lean manufacturing, dedicated to eliminate defects (average internal defects decrease)

Integrating/Coordinating Mechanisms

-problems associated with establishing contact among mana in different functions -sign of poorly performing structure= # of problems sent up hierarchy for top mana to solve -integrating mechanisms= organizing tools that managers can use to increase communication/coordination among functions and divisions -more complex an org structure= greater need for coordination -must use integrating mechanisms with divisional/matrix/product team structure

2. Deciding on the change to make

-decide of ideal future state -identifying obstacles and sources of resistance to change (found at all levels of company) -corp level changes in org strategy/structure impact divisional/departmental management ex. top mana increases resources spent on machinery/reduces on marketing and research and dev= power of manu mana increased/mrkt and R&D decrease= could cause more conflicts as departments fight to retain status in org -a company's culture being adaptive or inert (facilitates or obstructs change) ex. more rigid cultures= hard to change (GM/Military) -division mana may differ in attitudes to change and if power/interests threatened= will resist change (mana at all levels fight to protect their power/control on resources) ex. functional level sales mana may fight budget cuts if they think it's manu mana fault -at individual level= people resist change because brings uncertainty/stress ex. resist new tech because scared to learn or use it -obstacles make change a slow process (mana must take this into consideration) -can overcome obstacles by improving communication so all of org aware of need for change -overcome obstacles by empowering employees to participate in planning for change -overcome by emphasizing group/shared goals like increased efficiency/effectiveness -larger/more complex org= more complex change process

1. Assess the need for change

-deciding on how to change complex because impacts all of org/disrupts status quo/poses a threat (prompting employees to resist altering work relationships and procedures) -org learning can be important impetus for change 2 important activities: 1. recognize there is problem 2. identify its source -sometimes need to change is obvious (ex. org performance low) -often problems develop gradually -problems produce gap between desired performance and actual performance (to see gap look at performance measure like lower market share/less profit/higher costs/employees not meeting goals/staying within budget) -need to look inside and outside org for problem source -opportunities/threats outside or structure causing issue in between departments inside

Google (Adaptive Culture)

-decision making in low levels/emphasize creativity and innovation -low bureaucracy -informal/personal relationships, norms of cooperation/teamwork -open plan campus (googleplex) work together to innovate advantages in products and business solutions -google's values can't be written down or present in work routines

Strategy

-different strategies change organizational structure/culture ex. differentiation strategy (increase value) = best in flexible structure/culture with innovation (can develop products quick, need high cooperation between functions) ex. low cost strategy (drive down costs in functions) = best in formal structure/conservative culture (managers have more control over all activities) ex. Corporate level= expand scope of org with vertical integration/diversification (need flexible structure for sufficient coordination between business divisions, management has more control over various businesses) ex. expand internationally= mana need to create organizational structure that allows org to be flexible on global level

4. Organizational Structure

-different structure= different culture, to get one culture have to design structure to match ex. tall/central org= little personal autonomy/norms on being cautious, obeying authority, respect traditions because predictability, stability are goals ex.flat/decentral org= more freedom to choose/control their own activites/norms on being creative, courageous, taking risks because culture of innovation and flexibility -decentral auth= values that encourage and reward creativity or innovation (tells employees it is okay to be innovative and do things their own way, as long as actions consistent with good of the org) -in some orgs important that employees dont make decisions on own/actions be open to scrutiny (central can reinforce values of obedience and accountability) -through norms, learn behaving consistently/honestly is good, learn to share info (even mistakes) with supervisors is right -changing a culture can be hard because of the way factors interact and affect one another (major reorganization needed for cultural change)

3. implementing the change

-either top down or bottom up -Top down change= implemented quickly, top mana identify need for change and decide what to do and implement ex. top mana decide to restructure/downsize org and give divisional and departmental mana goals to achieve -deal with problems as they arise/revolutionary in nature -bottom up change= more gradual, top mana consults with mid and 1st line mana about need to change and over time mana at all levels work to develop detailed plan for change -adv= co-opt resistance to change from employees -emphasis on participation/keeping people informed -uncertainty/resistance minimized

Organizational Control Innovation

-employees empowered to be creative and authority decentralized so there's freedom to experiment -control systems to encourage risk taking (organizational culture vital) ex. caterpillar= everyone expected to do high quality work

Evolutionary/Revolutionary Change

-evolutionary change= gradual/incremental/narrowly focused/constant attempt to improve/adapt/adjust strategy and structure incrementally to accommodate change in env -instruments of this change= sociotech system theory/TQM (Kaizen) ex. using tech in better ways/reorganize work process -revolutionary change= rapid/dramatic/broadly focused/bold attempt to quickly find new ways to be effective -result in radical shift in ways of doing things/new goals/new structure -has repercussions at all levels in org -reengineering/restructuring/innovation= instruments of this ex. faced with unexpected change in env (tech breakthrough/impending disaster from poor management)

Grouping Jobs into Functions (Designing Org Structure)

-group jobs to best match needs of org's env/strategy/tech/HR -group into departments then design functional structure to use org resources effectively -as org grows/becomes more difficult to control= use more complicated org design (divisional structure/matrix/product team structure) -strategy is useless if implementation is bad -ability to make right organizing choices differentiates ineffective/effective management

4. Evaluating the Change

-if it improved org performance -compare how performance is now vs. before change -Benchmarking= comparing their performance on specific dimensions with the performance of high-performing orgs to decide how successful change effort has been (key tool in TQM) ex. Xerox= bm on distribution operations with LLBean/ bm on central computer operations with John Deere/bm on marketing abilities with P&G

The Selection Process

-several selection tools to sort relative qualifications of job applicants and appraise potential for being good performers in a job -background info/interviews/paper and pencil tests/physical ability tests/performance tests/references

The Legal Environment of HRM

-local/state/national laws and regulations that managers and organizations must abide by add to the complexity of HRM ex. US gov commitment to EEO= creation/enforcement of a number of laws managers must abide by -Equal Employment Opportunity= ensure all citizens have equal opportunity to obtain employment regardless of gender/race/sex/country of origin/religion/age/disabilites -Occupational Safety and Health Act of 1970= require that mana ensure employees protected from workplace hazards/that safety standards met -effective mana of diversity is legal imperative -EEOC= division of department of justice, enforces EEO laws, handles discrimination complaints (issues guidelines for mana to follow to ensure they are abiding by EEO laws) ex. Uniform guidelines on employee selection procedures= how to ensure recruitment and selection complies with Title VII of Civil rights act -contemporary challenges= how to eliminate sexual harassment/how to accommodate employees with disabilities/how to deal with employees with substance abuse problems/how to manage HIV+ employees or ones with AIDS (take steps to make sure no discrimination/use AIDS awareness training programs/dispel myths/ensure fair treatment)

2. Measure Actual Performance

-measure: 1. actual outputs that result from the behavior of their members 2. the behaviors themselves -sometimes easy to measure ex. fast food= easy because employees perform routine tasks (# of customers served/time transaction takes) ex. home depot= uses output control to measure how fast inventory flows through store -org does more complex/nonroutine activities that are hard to measure= harder ex. difficult for org that supply's amazons products to measure product designer's creativity by watching designer's actions -outputs easier to measure than behaviors because more tangible and objective (measure outputs first) -simple behavior measures: 1. if employee on time to work 2. employee consistently follows established rules to greet and serve customer

Coordinating Functions and Divisions

-more complex a structure= greater are problems of linking/coordinating functions -coordination becomes an issue because each function develops different orientation toward the other group, effects how they interact -each function views org problems from own perspective (may dev different views about major goals and issues at the org) ex. manu has short term view (keep costs under control/get product out of factory on time) ex. product dev function has long term view (dev product is a slow process/high quality more important than low costs) -may make manu/product dev function less likely to cooperate/coordinate to meet company goals -at divisional level= employees can get concerned with making their division successful more than the profitability of the whole org ex. refuse or don't see need to cooperate or share info -problems grow as more of functions increase

1. Direct Supervision

-most immediate/potent form of behavior control -actively monitor/observe behavior of their subordinates, teach subord appropriate behaviors, intervene to take corrective action as needed -mana lead by example= help subord develop and increase thier own skill levels -allows mana at all levels to be personally involved with subord and allows them to mentor them -problems= expensive because manager can only personally manage a small number of subord effectively (if this is the only control used= more managers needed/high costs, why output controls preferred to behavior control) -problem= direct supervision can demotivate subor (under such close scrutiny not free to make decisions/feel not evaluated in accurate or impartial ways, lead to people passing the buck/avoid responsibility/uncooperative if feel like mana using favoritism) -problem= not feasible (more complex a job, more difficult for manager to evaluate subordinates/ performance of divisional and functional mana can be evaluated only over relatively long periods, why output control systems developed)

Allocating Authority

-need clear hierarchy of authority to coordinate functions -authority= power vested in manager to make decisions/use resources to achieve org's goals by virtue of position in org -hierarchy of authority= org's chain of command, relative auth that each manager has (from CEO to nonmanagerial employees) -Span of Control= # of subordinates who report directly to a manager -line manager= someone in direct line or chain of command with formal authority over people and resources -staff manager= responsible for managing a specialist function (finance/marketing) ex. McDonalds -orgs motivate mana with prospects of promotion/increased authority in chain of command

Organizational Control Efficiency

-need to measure how much input makes an output -control system contains measures that let managers assess how efficiently the org is producing goods, tell how successful a change in how org produces goods was ex. Kleenex= outsourced logistics at a UK plant to leading lean org (reduced long shifts/overtime/absenteeism went down/productivity up) -without control= mana have no idea how well an org performing and how it can be improved (important info in competitive environment)

GlaxoSmithKline (adaptive)

-nurtures scientists and emphasizes values of innovation -scientists given freedom to pursue ideas even if commercial payoff is questionable -ethical company whose values put people able profits -cultures of some orgs become dysfunctional, encouraging mana actions that harm the org and discourage actions that improve performance ex. Mayer left google to become yahoo CEO= had hard time because org in decline, tried to change org culture while acquiring several innovative start up companies, mixed results (now investors demanding change, verizon plans to acquire yahoo for $5B)

Problems with Output Control

-output control is only a guide to appropriate action -output standards need to motivate mana at all levels/not cause mana to behave in inappropriate ways to achieve org goals ex. mana almost hit goal, then recession, can't teach goals= behave unethically to hit goals (cut back on research activities/delay machinery maintenance/reduce marketing expenditures/lay off mid level mana to hit goals and get bonus) or (help in achieving short run goal, can hurt long term profitability of ROI, less product innovation in R&D and less consumers because less marketing) -mana must be sensitive in use of output control/need to monitor effects at all levels of org

Cross-Functional Teams

-permanent integrating mechanism -when they need to address recurring problems (developing new products/finding new kinds of customers) ex. new product development committee (responsible for choice/design/manu/mrkt of new product) -requires high level of integration -teams assume long term responsibility for all aspects of development and making the product ex. team of all functions manage product to launch

Where does organizational culture come from?

-shaped by interaction of personal/professional characteristics of people within organization, organizational ethics, nature of employment relationship, organizational structure

1. Establish standards of performance/goals/targets against which performance is to be evaluated

-standards measure efficiency/quality/responsiveness/innovation ex. pursue low cost strategy= measure efficiency at all levels -at corporate level= standard of performance measures efficiency= operating costs (costs associated with producing goods) -could set goal to reduce operating costs by 10% in 3 years to increase efficiency -corp mana evaluate divisional mana for ability to reduce operating costs in divisions= divisional mana set cost saving targets for functional managers -performance standards at one level affect those at other levels -can use thousands of indicators of performance (mana at each level responsible to select standards to best evaluate performance) -must choose standards that allow managers to assess all 4 blocks of competitive advantage (if just focus on one and ignore others= can hurt performance)

Interviews

-structured interview= mana ask each applicant same standard questions (informative questions that prompt interviewee to demonstrate skills) -situational interview question= present interviewee with scenario they would encounter on job and ask them how to handle it ex. sales job= how to respond to customer whose order is lost -unstructured interview= more like ordinary conversation, probing questions, no fixed set of questions predetermined (superior because more likely to yield info that helps identify qualified candidates/less subjective/less influenced by bias) -always potential for interviewer bias to have impact ex. similar to me bias (must be trained to avoid biases/sources of inaccurate perceptions, train by increasing diversity awareness/diversity skills, use multiple interviewers because ind biases and idiosyncrasies may cancel each other out) -can't ask questions irrelevant to job in question (risk costly lawsuits/illegal to inquire on spouse or plans to have kids because irrelevant to job performance) -can interview at different stages in selection (initial screening/final hurdle) -use other selection tools with this because potential for bias/inaccurate assessments ex. bad first impression/overly nervous in 1st min of interview= judged harder

2. Organizational Goals

-top mana consult with lower and set overall goals (standards specify for divisional/functional managers the level at which their units must perform if org to achiever overall goals) -each divison has specific goals to achieive ex. GE -goals set at each level harmonize with goals at other levels so org work together to achieve corp goals -goals set appropriately so mana are motivated to accomplish them 1. set too high= mana work 1/2 heartedly because certain they will fail 2. set too low= too easy, not motivated to be most efficient and effective -best goals= specific and direct -stretch goals= challenge and stretch mana ability but not out of reach or require high expenditure of manager time/energy -deciding goals is a skill managers develop (decide how difficult tasks are by judgment and work experience and assess the ability of subordinates to achieve goal) -interrelated goals (reinforce one another/focus on corp objectives) will energize the organization

1. Financial Measures of performance

-used to evaluate overall organizational performance -Profit Ratios= measure how efficiently managers use org resources to generate profit (ROI and operating margin) -Return on Investment= org net income before taxes divided by its total assets (most commonly used financial measure because can compare with other orgs, helps assess comp adv) -Operating Margin= dividing a company's operating profit (amount left after all costs of making product and running business) by sales revenue (tells how efficiently they are using resources, can compare one year's performance to another, high= good) -every successful attempt to reduce costs reflected in increased operating profit -Liquidity Ratios= measure how well mana have protected org resources to be able to meet short term obligations (current ratio and quick ratio) -current ratio= current assets divided by current liabilities (tells mana if they have resources to meets claims of short term creditors) -quick ratio= shows whether they can pay these claims without selling inventory -Leverage Ratios= measure the degree to which mana use debt (borrow money) or equity (issue new shares) to finance ongoing operations -debt to assess ratio/times covered ratio -highly leveraged if use more debt than equity -debt= risky when net income and profit fails to cover interest on debt -Activity Ratios= show how well mana are creating value from org assets (inventory turnover/day sales outstanding) -Inventory Turnover= measures how efficiently mana turn inventory over so excess inventory not carried -Day sales outstanding= reveals how efficiently mana are collecting revenue from customers to pay expenses -used to assess efficiency and effectiveness of org because objective -fail to meet standards= corrective action (ex. corp reorganization might be needed/sell off divisions or exit businesses/rethink corp level strategies) -does not tell mana all they need to know on 4 building blocks (inform of results of decisions already made, don't tell mana how to find new opportunities to build comp adv in future)

Liason Roles

-when volume of contacts between 2 functions increase, improve coordination by giving one manager in each function responsibility for coordinating with the other -these managers meet daily/weekly/monthly or as needed -coordinating is part of liason's full time job, usually informal relationships develop between people involved (easing strain between functions) -role provides way of transmitting info across organization (important in big orgs whose employees may know no one outside their immediate function) ex. marketing mana and R&D meet to brainstorm new product ideas

The control process

1. Establish the standards of performance, goals, or targets against which performance is to be evaluated 2. Measure actual performance 3. Compare actual performance against chosen standards of performance 4. Evaluate the result and initiate corrective action if the standard is not being achieved

Overview of Components of HRM

1. Recruitment/Selection= to attract/hire new employees who have abilities/skills/experiences to help org achieve goals ex. Microsoft= goal of staying premier cpu software company in world so importance on hiring the best, rigorous process, helped comp adv -people want to work there because forefront of industry 2. Training and Development= to ensure that org members develop the skills and abilities that will enable them to perform jobs effectively in present and future -changes in tech/env/org goals/strategies= need new techniques or ways of working ex. Microsoft= new hires get on the job training by joining small teams with experienced employees as mentors/advisors 3. Performance Appraisal and Feedback= PA gives mana info they need to make good HR decisions (how to train/motivate/reward organizational members), kind of control system that can be used with management by objectives -Feedback serves developmental purpose for org members (mana can give employee's valuable info on strengths/weaknesses/areas they need to concentrate on 4. Pay and Benefits= distribute pay (reward high performing members with pay raise and bonuses)= high liklihood that valued HR will be motivated to continue high levels of contribution to org -if pay linked to performance= high performers likely to stay -Benefits= health insurance (outcomes employees receive by virtue of their membership in org) 5. Labor Relations= steps that mana take to develop and maintain good working relationships with labor unions that represent employee interests ex. help mana establish safe working conditions/fair labor practives -mana must ensure all 5 components fit together and complement org structure and control system -each of 5 components of HRM influence the others ex. kinds of people attracted and hired determine kinds of training.way performance appraised/appropriate levels of pay and benefits

Steps to management by objectives

1. Specific goals and objectives are established at each level of the organization -top mana establish overall objectives (financial performance goals/targets) -goes down through org= low mana set goals to achieve corporate objectives -1st level mana/employees jointly set goals to achieve functional objectives 2. Manager and their subordinates together determine the subordinate's goal -participatory nature (plan goals together) -strengthens employees commitment to achieving their goals/meeting their budgets -enables subordinates to tell managers what they think they can realistically achieve 3. Managers and their subordinates periodically review the subordinates progress towards meeting goals -salary raises/promotions linked to goal setting process (mana who achieve goals receive greater rewards) -in decentralized responsibility= MBO different (mana ask teams to dev goals consistent with organizational objectives, mana negotiate with team on goals and budgets, reward system linked to team performance) ex. Cypress Semiconductor (used online info system to monitor employees and teams in decentralized org, info on system has 10-15 employee goals, when goal agreed upon, when its due, if it finished) -reviewed goals once a week for 4 hours -used managing by exceptions= looking only for employees falling behind -kept levels of hierarchy low -mana/subordinates must believe performance evaluations are fair/accurate (personal bias/political objectives can ruin MBO's effectiveness, work hard to protect integrity of system) -in teams= each member's contribution and each team's contribution to goal must be fairly evaluated (not easy to do/depends on mana ability to create control system that fairly evaluates/links performance to reward)

2 factors to determine how complicated tech is

1. Task Variety= number of new/unexpected problems encountered in performing tasks and job 2. Task Analyzability= degree to which programmed solutions are available to people to solve problems they encounter Complicated tech= high variety/low analyzability (varied problems that need nonprogrammed decision making) ex. R&D lab who develops new drugs (seen in planning exercises top managers use to chart future strategy) Routine Tech= low variety/high analyzability (don't vary/solved with programmed decisions) ex. typical mass production/assembly operations (mana already have programmed solutions to perform efficiently), service routine tech= tasks in prepping fast food

Grouping Tasks into Jobs: Job Design

1st Step in Organizational Design -Job Design= process by which managers decide how to divide tasks into specific jobs ex. Mcdonalds= decided how to divide tasks to provide customer with fast and cheap food (basic division of labor among chefs and food servers/allocated all tasks cooking food to chefs and all tasks giving food to people to servers/other jobs include dealing with drive thru, keeping place clean, overseeing employees and responding to unexpected events) -result of job design= efficient division of labor (critical part of organizing process, vital for efficiency and effectiveness) -when each employee given fewer tasks to perform (specialization) = each individual becomes more productive at their job ex. Subway- no division of labor, efficient for them because limited menu of sub sandwiches prepared to order, production system simplier -mana must analyze range of tasks to be performed = create jobs that allow organization to give customers what they want -job simplification= process of reducing number of tasks each worker performs (too much of this= reduce efficiency if workers find jobs boring/monotonous/demotivated/unhappy= perform at low level)

Output Control

3 main mechanisms used to assess output and performance 1. financial measures of performance 2. organizational goals 3. operating budgets

Lewin's Force-Field Theory of Change

a wide variety of forces arise from the way an organization operates--from its structure, culture, and control systems--that make organizations resistant to change -at same time variety of forces in task/general env push towards change -2 sets of forces always in opposition in org -when forces evenly balanced= state of inertia (does not change, to get org to change mana must find way to increase forces for change/reduce resistance to change/or do both simultaneously)

3. Operating Budgets

blueprint that states how managers intend to use organizational resources to achieve org goals efficiently -mana at one level allocate specific amount of resources to produce goods to subordinate managers (low level managers decide how to allocate for different organizational activities/evaluate for their ability to stay within budget and to make best use of available resources) ex. GE= lighting division budget of $50 M to develop and sell new line of energy saving lightbulbs (decide how much to allocate to R&D, engineering, sales) -large org treats each division as stand alone responsibility center (then evaluate each division's contribution to corporate performance) -mana of division given fixed budget and evaluate on amount of goods they produce with those resources (cost/expense budget approach) -mana asked to maximize revenues from sales of goods produced (revenue budget approach) -mana evaluate on differences between revenue generated by sales of goods and budgeted cost of production (profit budget approach) -output control allows mana to keep accurate account of the org so they can quickly take corrective action as needed

Technology

combination of skills/knowledge/machines/computers used to design and make and distribute goods and services -more complicated tech used= more difficult to regulate and control because more unexpected events can arise (need flexible structure and progressive culture to respond to unexpected situations) -gives freedom/desire to work for solutions to new problems -more routine tech= formal structure better because tasks simple and steps to produce goods worked out in advance

3. The Employment Relationship

established via HR policies and practices (influence how hard they'll work to achieve org goals/how attached they are to org/whether they buy in to values and norms) -HR policies are a good indicator of values in culture concerning responsibilities to employees ex. promoting from within= values and norms that build loyalty, align employees goals with org, encourage working hard ex. promoting without= employees look for opportunities elseware, values and norms builf self-interested behavior, cooperation and cohesiveness fall ex. tech companies outsourcing= laid off people, culture was of long term employment/respect for employees= culture changed (fix by having HRM pay policies that reward high performance with bonuses and stock) ex. SW Airlines/Google est company wide stock options that encourage innovation/responsiveness to customers

5. Feedback

extent to which actually doing a job provides a worker with clear and direct information about how well they performed the job ex. when air traffic controlled messes up= midair collision (immediate feedback) -increased employees feel that 1. their work is meaningful 2. they're responsible for work outcomes 3. they're responsible for knowing how outcomes impact others = increased motivation for work = increased satisfaction/perform at high level -more motivated= use skills more/perform more tasks/more responsibility

3. Bureaucratic Control

control by means of a comprehensive system of rules and SOP's that shapes/regulates the behavior of divisions/functions/individuals -rules/SOP's= formal, written instructions that specify a series of actions that employees should follow to achieve a given end (If A happens= then do B and C) ex. call supervisor by certain time if going to be absent/late -responsibility of mana to develop rules -rules/SOP's clarify people's expectations about one another/prevent misunderstandings over responsibility or use of power ex. prevent supervisor from arbitrary increase of subord's workload/prevent subord from ignoring tasks that are part of their job -behavior standardized= actions done same way and outcomes predictable (leads to standardized outputs and less monitoring outputs of behavior) ex. new ways to add on exhaust pipe in assembly line that reduces number of steps= make that SOP= then all will be put on the same way (output control still used at end of line/# of quality problems minimized because rule is followed) ex. service orgs= standardize customer service quality (correct ways to greet/how to serve or bag food, follow rules that are most effective for situation/better trained = more standardized= more trust that outputs consistent) ex. failure= 2011 tornado in missouri (people didn't seek shelter because sirens lost credibility because many false alarms= people died, need more credible structure to overcome complacency) ex. happened again in OK City (2013)= the simple rule of taking shelter when hear sirens not enough -if existing rules don't work= employees experiment= when they find solution it turns into a rule -use rules to achieve quick resolution of complex issue

4. Autonomy

degree to which a job gives an employee freedom and discretion to schedule different tasks and decide how to carry them out ex. salespeople have increased autonomy because they decide how to allocate time among customers compared to assembly line workers (actions determined by speed of assembly line)

3. Task Significance

degree to which a worker feels his job is meaningful because of impact on people in organization and outside of organization (coworkers and customers) ex. Teacher has increased task significance because sees effect on students compared to a dishwasher

2. Geographical Structure

divisions broken down by geographic location -used when org expand rapidly at home or abroad -mana in one central location may find it hard to deal with different problems in diff regions of the world ex. Fedex (creating division in each region to provide next day mail service) ex. larger retailors like Macys/Neimans/Brooks brothers use this because needs of retail customers vary per region (shorts in CA/parka in Midwest) -gives mana flexibility to choose products for regional customer -global geographic structure= mana locate different divisions in each of the world regions an org operates (likely to do this with multidomestic strategy where structure allows them to customize when needed) ex. customize to match food/drink desires in different countries -Global Product Structure= each product division takes responsibility to decide where to manufacture products, market them worldwide (goes with global strategy where same product or slight variation) -product division managers manage their own global value chain/decide where to establish foreign subsidiaries to distribute and sell products

Concurrent control

gives managers immediate feedback on how efficiently inputs are being transformed into outputs so managers can correct problems as they arise (at conversion stage) ex. defective batch of inputs/machine out of alignment/worker who can't do job well -at heart of TQM programs -problems corrected on an ongoing basis= more valuable products that can be sold for more money

3. Market Structure

groups divisions according to the particular kinds of customers they serve ex. Dell= customers (large business/small org/educational users in school/gov or state agencies/individual users) -4 streamlined market divisions that focus on being responsive to one type of customer -lets manager respond to needs of customer/act flexibly in making decisions in response to customer changing needs

Problems with Bureaucratic Control

helps manager manage by exception (intervening/taking corrective action only when needed) Problems: 1. Establishing rules is easier than discarding them -org becomes overly bureaucratic (can hurt org if comp arrives) -decision making slows/mana react slow to changing conditions 2. people so used to automatically following rules they stop thinking for themselves -can reduce level of learning/get org off track if they focus on wrong issues -new ideas don't come by blindly following SOP's -innovation incompatible with increased bureaucratic control ex. When Iger became CEO of Disney -noticed slow decision making led to mistakes in strategy/too tall and bureaucratic -dismantled central strategic planning office (bureaucratic bottleneck) -new ideas by different business units now/more innovation/more people willing to speak out -bureaucratic control best when org activities routine and when employees making programmed decisions ex. mass production settings (Ford)/routine service setting (Target) -not useful in nonprogrammed decision settings where mana must respond quickly to changes in task env -to achieve controls= mana must identify outcomes they want to achieve/behaviors they want employees to perform to achieve outcome -output/behavior control inappropriate when: 1. mana can't evaluate performance of workers by observing daily behavior 2. rules/SOP's can't tell dr how to respond in emergency or scientist how to discover something new 3. output controls are crude measures of quality of performance (amount of time to operate/costs of making a discovery)

The Minimum Chain of Command

hierarchy with the fewest levels of authority necessary to efficiently and effectively use organizational resources -top mana need to see if they are employing the right # of middle and first line managers/whether they can redesign org architecture to reduce number of managers -constantly scruntinize hierarchy to see if # of levels can be reduced ex. get rid of level= give responsibilities at that level to managers above and empower employees below ex. Yum Brands (Pizza Hut/Taco Bell/KFC)= corp HQ is support center for worldwide operations, empowering -more of US manu just moved abroad to low cost countries ex. Plexus (small company)= organized to prosper in US in low cost manu world (empowered work teams that can't match abroad efficiency of producing high volumes of one product, dev manu tech where they efficiently produce low volumes of multiple products, all employees control product decisions and are cross trained to be able to perform all operations, when work slows down at any point in the production of a particular product then worker further along the production process can move back to help solve the problem that has arisen at earlier stage, self managed teams that can make any decision to produce their product) -because each product different, need to be able to make rapid decisions and respond to unexpected contingencies vital because time is money (allowed teams to experiment= reduced changes over time from hours to 30 minutes so line is making products over 80% of the time) -flexibility= efficient, can compete against low cost manu abroad

Human Resource Management

includes all activities mana engage in to attract/retain employees and to ensure that they perform at a high level and contribute to the accomplishment of organizational goals

HR Planning

includes all activities managers engage in to forecast their current (employees they need today and future (employees needed later to achieve longer term goals) HR needs -must make demand/supply forecasts -demand forecasts= estimate the qualifications/# of employees an org will need (given goals and strategies) -Supply forecasts= estimate the availability and qualifications of current employees now and in the future (as well as supply of qualified workers in external labor market) -sometimes choose to outsource after HR planning -outsource= use outside suppliers/manu to produce goods ex. manu in publishing org contract with freelance editors to copy and edit books they intend to publish ex. Kelly services provides services to mana who want to use outsourcing to fill some HR requirements -outsource because flexibility (also called off shoring, especially when accurately forecasting HR hard and HR needs fluctuate and finding skilled workers in an area is hard) -outsource because use HR at lower cost (org doesnt have to provide benefits/can contract for work only when needed/man dont have to invest in training) -outsource for aftersales service (appliances/equipment/legal work/mana of info systems) -outsource disadv= mana may lose control over quality of goods/ind doing outsourced work may have less knowledge of org practices and goals= less commitment to org/unions resist because can lose jobs ex. to avoid disadv= microsoft/IBM have pool of temporary employees to debug programs -increase of globalization of business= outsource of office work/cpu program/technical jobs from US and W Europe (high labor costs) to India/China (low labor costs) -outsourcing expanded to knowledge-intensive work (engineering/R&D/cpu software) -more than 1/2 of US orgs outsource -outsource to take adv of increasingly talented global workforce and be closer to growing global marketplace ex. HP/IBM/Caterpillar= earn more than 60% revenue from overseas market ex. IBM= 100,000 employees in India, Hp has 25,000 -smaller orgs outsource to Sri Lanka/Egypt/Russia -key challenge= retain sufficient managerial control over activities and employee turnover

Human Resources

increased number of highly skilled workforce/more people working in teams= need more flexible structure and culture of employee autonomy and self control -highly skilled employees internalized professional values in training= desire freedom/autonomy/no close supervision -when in teams= must be allowed to interact freely/develop norms to guide their own work interactions (flexible) -managers need to pay attention to needs of the workforce/complexity and kind of work performed -way organizational structure works depends on organizing choices on 1. how to group tasks into individual jobs 2. how to group jobs into functions 3. how to allocate authority and coordinate functions

Job Enlargement

increasing the number of different tasks in a given job by changing the division of labor ex. Subway= has more tasks (job is larger, reduces boredom/fatigue, more motivation to perform at high level)

Types of Integrating Mechanisms

liason roles, task forces, cross functional teams, integrating roles

Matrix Structure

managers group people and resources in 2 ways simultaneously (by function and by product) -grouped by functions to allow them to learn from another and become more skilled and productive -product teams= members of different functions work to develop specific product -complex network of reporting relationships (each person in product team reports to 2 managers) 1. functional boss= assigns ind to team/evaluates performance from functional standing 2. boss of product team= evaluates performance on the team -team members= 2 boss employees -employees assigned to team change as skills that team needs change ex. at start of production development= engineers and R&D assigned ex. when provisional design made= marketing assigned ex. manu join when time to find efficient ways to make it -specific job complete= members leave and are reassigned (makes most use of HR) -product teams empowered/team members responsible for making most of the important decisions in product development -product team manager= facilitator, controls financial resources, keep project on time and within budget -functional mana make sure product is maximizing differentiated appeal -used by high tech companies in environment where product development takes place monthly/yearly= need to innovate quickly

Functional Structure

organization structure composed of all departments that an organization requires to produce its product -function= group of people working together who possess similar skills/use same kind of knowledge, tools, technique to do job ex. Pier 1 Imports= functions (finance and admin/marketing/HR), each job in function exists because helps function perform activities needed for high organizational performance -advantage of grouping jobs by function 1. people can learn from observing each other/become more specialized= perform at higher level -tasks associated with one job often related to tasks in another job (encourages cooperation in function) 2. easier for managers to monitor and evaluate performance -coworkers can evaluate each other, if worker still performing poorly= experienced workers can help them develop new skills 3. lets manager create the set of functions they need to scan and monitor the competitive environment and obtain info on how it's changing -good position to develop strategy where organization can respond to change ex. marketing can monitor new marketing developments to target customers/merchandising can monitor potential suppliers -org grows= task env/strategy change because producing more goods for different kinds of customers (functional structure less efficient) -mana in different functions find it harder to communicate/coordinate when responsible for different kinds of products (esp with domestic and international growth) -functional mana focus on their own function/goals= lose sight of org goals because problems viewed through narrow perspective, org suffers

1. Product Structure

organizational structure, each product line/business in its own self contained division -when can't have functional management oversee production of different kinds of products -to perform functional activities successfully= manager must have experience in specific market or industry -used when managers diversify into new industries/expand range of products -gives divisional mana responsibility for business level strategy so this division can compete effectively in market (each division has complete set of all functions) -functions report to divisional report to corporate Advantages= 1. allows functional mana to specialize in one product area (can build expertise and fine tune skills) 2. division manager can become expert in their industry (helps them choose/develop business strategy) 3. frees corporate manager from need to supervise each divisions operations day to day (latitude lets corp managers create best corporate strategy and maximize org growth and ability to create value) -corp makes fewer mistakes because more likely to take org-wide view -likely to evaluate better how divisional mana doing and intervene/correct when needed -divisional mana layer can improve use of org resources (puts divisional mana close to customers to where they can respond quickly to changing task environment) ex. GlaxoSmithKline= merger of 2 drug companies to increase research productivity (had to combine talents and quickly innovate/group researchers into 8 divisions to focus on particular diseases/people rewarded based on number of new inventions and speed they innovate/research productivity doubled and more drugs in clinical trials)

Job Analysis

process of identifying the tasks/duties/responsibilities that make up a job (job description), the knowledge/skills/abilities needed to perform the job (job specifications) -job analysis needs to be done for each job in the org -can be done by observing current employees as they perform job/interview them -rely on questionnaires compiled by jobholders/their mana (asks about skills/abilities needed to do job, job tasks and amount spent on them, responsibilities, supervisory activities, equipment used, reports prepared, decisions made) -position analysis questionnaire= comprehensive/standardized that mana use (focus on behaviors jobholders perform/working conditions/job characteristics) -contains 194 items in 6 divisions: 1. info input (where/how jobholder gets info to do job) 2. mental processes (reasoning/decision making/planning) 3. work output (physical activities done/devices used) 4. relationships 5. job context (physical and social environment) 6. other job characteristics (work pace) -for more flexible jobs (not specified tasks)= analysis focuses on determining skills/knowledge workers need to be effective -then they know HR needs/jobs they need to fill

Feedback control

provide information about customers reactions to goods and services so corrective action can be taken if necessary (at output stage) ex. monitors number of customer returns and alerts managers when defective products produced, mana info systems measures increases and decreases in relative sales of different products (alert changes in customer tastes), then can increase or decrease production of certain goods

Organizational Environment

quickly changing external environment= more uncertainty which leads to more problems in getting scarce resources -speed decisions and communication= easier to get resources -organizational choices that result in flexible structure/entrepreneurial culture (decentralize authority/empower low level employees to make decisions/values that emphasize change and innovation/more organic) external environment stable= resources available (uncertainty low) -less communication and coordination to get resources -org choices that bring stability/formality to structure and culture of obedience and being a team player (decisions with hierarchy of authority/use detailed rules, SOP's, norms to restrict and guide employee behavior/more mechanistic) -rapid change in marketplace and increased competition (need structure of increased flexibility increasing with self managed teams and empowerment)

Internal Recruiting

turn to existing employees to fill open positions -lateral moves= job change with no major changes in responsibility or authority level (employees either want this or promotion) -adv= applicants already familiar with the org (goals/structure/strategy/culture/rules/norms), mana already know candidates (have info on their skills/abilities/behavior), can boost levels of employee motivation and morale (see promotion as possibility/lateral move alleviates boredom), less time consuming and less expensive -Disadv= limited pool of candidates/tendency for them to be set in org's ways/sometimes doesn't have suitable candidates/doesn't always bring in new ideas or approaches in