MGMT Exam 4

Supporting Articles: Confronting Conflict

*Workplace conflicts happen everywhere, and ignoring them can be costly. Every unaddressed conflict wastes about eight hours of company time in gossip and other unproductive activities *Understanding the reasons behind workplace conflicts can help HR professionals tackle problems before—or after— a conflict turns into a face-off between departments that refuse to work together or a screaming match between colleagues. A good place to start is by realizing that, even though people may shy away from it, conflict is actually normal and healthy. In Casey Swartz fact, many believe it's a vital ingredient to organizational success. Experts have found that the most effective teams are those in which members feel safe enough to disagree with one another. A culture where dissent is allowed, or even encouraged, can spur innovation, diversity of thought and better decision-making HR steps in when... *Employees are threatening to quit over the problem. Recruiting and training are expensive; it's often cheaper to work out a solution. • Disagreements are getting personal, and respect between employees is being lost. • Conflicts are affecting morale and organizational success. 10 Steps to Resolving Conflict 1. Schedule a meeting to address the problem, preferably at a neutral place. 2 Set ground rules. Ask all parties to treat each other with respect and to make an effort to listen and understand others' views. 3. Ask each participant to describe the conflict, including desired changes. Direct participants to use 'I" statements, not "you" statements. They should focus on specific behaviors and problems rather than people. 4. Ask participants to restate what others have said. 5. Summarize the conflict based on what you have heard and obtain agreement from participants. 6. Brainstorm solutions. Discuss all of the options in a positive manner. Rule out any options that participants agree are unworkable. 7. Summarize all possible options for a solution. 8. Assign further analysis of each option to individual participants. 9. Make sure all parties agree on the next steps 10. Close the meeting by asking participants to shake hands, apologize and thank each other for working to resolve the conflict.

Scope of Stress in the Workplace

- 1/4 of employees view their jobs as the number one stressor in their lives - 3/4 of employees believe the worker has more on the job stress than a generation ago - Problems at work are more strongly associated with health complaints than are any other life stressor- more so than even financial problems or family problems

Workplace Stress Defined

- Emotions are affected in the workplace by social, occupational, environmental, and psychological factors we PERCEIVE AS THREATS (workloads)

Managing Stress at Work: Individual Approaches

- Employee can take personal responsibility for reducing stress levels - Ind. strategies: time management, exercise, relaxation training, expanded social support networks

Work Specialization

- Repetition of work - Training for specialization - In the 1960's, human diseconomies from specialization began to surface (recent trends suggest there still may be advantages to be had in specialization) -division of labor (highly specialize & low; variety of tasks) EX. Manufacturing, Ford Assembly line; efficient & productive -can create boredom (can become dissatisfied)

How Employees learn Culture

- Stories: The State Farm Story - Rituals: meetings, songs, the way a company service the community, etc. - Symbols: size of office, type of furnishings, executive perks, ATTIRE, etc. - JARGON: the special language that defines culture

Supporting Article: Taking Stress out of Work

- Workplace stress is something millions live with, but few truly understand. We have all heard that stress kills, but something less publicized is that stress costs. According to the American Institute of Stress, stress in the workplace affects four out of five American workers and costs U.S. businesses an estimated $300 billion a year from accidents on the job, absenteeism, employee turnover, diminished productivity, medical expenses, increased insurance premiums, workers compensation awards and lawsuits. Researchers concede that stress is difficult to define because it is an INHERENTLY SUBJECTIVE EXPERIENCE. We all react differently. And differentiating "work stress" from the general, daytoday stress that everyone experiences can be even more problematic because there is rarely an exact demarcation between the two. - But while clearly detrimental to the business world, workplace stress rarely enters public or political discourse on either side of the Atlantic. [[[Researchers and, on occasion, managers talk about "good stress," which is sometimes referred to as "eustress" to distinguish it from harmful stress. Preparing to run a race, for example, might be stressful, but may lead to improved performance. "Pressure might be good for performance, but stress is not,"]]] said Eusebio Real Gonzalez, Ph.D., head of the European Risk Observatory in Bilbao, Spain. He worries that managers who allow for or even embrace "good stress" can create a slippery slope that inevitably leads to harmful stress. Gonzalez says that a good way to tell the difference between stress and eustress is duration; stress that is chronic will likely be harmful. The subjectivity surrounding stress, however, has not deterred researchers from studying its causes and health effects. Dr. Steven Sauter, coordinator for the research program on work organization and stress related disorders at the NIOSH, has seen an explosion in the scientific study of workplace stress in recent years. To Sauter, this awakening can be largely credited to the massive downsizing and outsourcing trends of the 1990s that have created a climate of job insecurity in the workplace. Similar factors include more flexible employment practices, the use of temporary or contract workers and the growth of new operating systems, such as "lean production," that make employees constantly fearful that their next work day could be their last. Furthermore, experts also see stress rising due to the burdens facing two income families, the aging workforce, a faster pace of work, poor work/life balance and the longer work hours many employers now demand in the modern business world. The fact that the United States now has a more service oriented economy that requires more personal interactions than ever may be another factor. Regardless of the cause, NIOSH researchers have found that 35% of the working population experiences high levels of stress on the job, while 13% say they "always" find work stressful. And there are numerous ways in which this is having direct financial effects on corporate bottom lines. [[[ Among the onethird of workers who report high levels of stress, there is a 50% increase in health care utilization costs to their companies,]]] resulting in an average additional cost of $600 per worker per company per year. - The evident connections between workplace stress and soaring health cost not to mention the rigors of competing in a global marketplace have piqued the interest of many companies. Employers are also realizing that the new servicebased economy often demands healthier, more engaged employees than an industrial economy does. Stress may lower the productivity of someone manning a conveyor belt or pushing the levers on a machine, but it can lead to the direct loss of business if it affects the client based, persontoperson interactions required in CUSTOMER SERVICE (SERVICE BASED ECONOMY). So now, many companies are attempting to develop programs that can cut the longterm costs of stress while boosting morale, productivity and profits in the near term. And keenly aware of the connection between stress and illness, a legion of governmental and nonprofit agencies devoted to occupational safety and health are encouraging this process in hopes that the corporate world's incentive to deal with the problem can lead to a healthier population.

The Functions of Culture

- boundary-define role - conveys a sense of identity for members; much needed due to current trend of decentralization and virtual organizations - facilitates the generation of commitment - enhances the stability of the social system - serves as a sense making and control mechanism; guides the behavior of employees

Culture versus Formalization

- high formalization creates predictability, orderliness, and consistency - formalization and culture are two different roads to the same destination -- the stronger an org. culture, the less management needs to be concerned with developing rules and regulations

Exhibit 16-3: Entry Socialization Options pg. 540

-Formal vs. Informal: (F) segregated from ongoing work setting, differentiated, socialization EX. Specific orientation and training, Police/Fire department programs. (I) new employees directly into the job, w/ little to no attention EX. R&D, Advertising, Filmmaking -Individual vs. Collective: (I) socialized individually EX. Professional Offices; role innovation. (C) grouped together and processed through an identical set of experience EX. Military boot camp -Fixed vs. Variable: time schedule where newcomer transition from outside to insider (F) standardized stages of transition; rotational training programs, probationary periods EX. 8-10 years associate status in accounting and law firms. (V) promotion system, one is not advanced to the next step until one is "ready" -Serial vs Random: (S) the use of role models who train and encourage newcomers EX. Apprenticeship and mentoring programs. (R) role models are deliberately withheld; newcomers are left on their own to figure things out -Investiture vs. Divestiture: (I) newcomers qualities and qualifications are necessary ingredients for job success; they are confirmed and supported. (D) strip away certain characteristics of the recruit EX. Fraternity and Sorority pledges go through divestiture socialization to shape into proper role

Supporting Article: How to Build a Boundaryless Organization

-The first and most important truth any leader must understand is that the human beings who work inside every kind of organization possess unlimited potential. They have the ability to solve any problem and the adaptability to respond to unforeseen circumstances. It may be the most overworked truism in the business world, but employees are indeed the most valuable resource and asset that any company has. The problem: most organizations today are unable to tap into that limitless human potential because of a series of self imposed boundaries. Unlocking this potential means challenging the many assumptions that we have about work today: the incontestability of hierarchy, the importance of putting in time in the office, semiannual employee reviews, valuing the voice of the customer but not of the employee, and the restriction of vital information to preserve rank. Organizations and their leaders must strive to break three common boundaries in order to unleash all of the talent and contribution lying in wait. The first is rolebased: communication and collaboration is restricted by seniority level. How could a lowly entrylevel employee possibly engage with a senior manager or worse... an executive! The second type of boundary is around departments and function. Marketing folks stick with their peers in marketing, sales with sales, product development with product development and information and potential opportunities for innovation remain stuck within silos. The third most common type of boundary is geographic— employees in one office or location simply don't "see" their peers in another. - The leader challenges common assumptions around management and mentors employees to help them become successful. The leader has followers not because he commands them, but because he has earned them. -Collaborative technologies are also crucial in developing leaders. - At every turn, leaders must ask themselves, "How does this support our vision of breaking down boundaries?" How can employee onboarding be changed? What about talent management? Perhaps when employees are brought on board they are taken through a collaboration scavenger hunt where they must find and connect with colleagues around the world - What if instead of semiannual reviews, you go with a system of realtime feedback on a collaborative platform? - What if employees "narrated" their work in a public way so that everyone and anyone can see what they are working on? - Unlocking human potential is the new competitive advantage. But it's not as simple as expressing good intentions at the top. And it's not enough to proclaim, "our people are our most important assets." Every leader must do the hard work of breaking down boundaries and rethinking the most deeply held assumptions about work. It's the difference between winning and losing in the future.

Overcoming resistance to change

1. COMMUNICATION 2. Building support and commitment EX. have support when downsizing 3. Manipulation: negative, twisting facts 4. Selecting people who accept change 5. Coercion- negative, direct threat EX. threatening by not giving promotion, or moving location

Effective strategies for downsizing

1. Investment: high-level involvement; get moral back up *2. Communication: reduces anxiety 3. Participation: voluntary, retirement packages 4. Assistance: health insurance provided even after they leave (3 months)

Five Steps of Negotiation (pg.474)

1. Preparation and Planning 2. Definition of ground rules- exchange proposals 3. Clarification and Justification- justify proposals 4. Bargaining and problem solving-assess negotiation 5. Closure and implementation

Keeping a Culture Alive

1. Recruitment and Selection Process: identify and hire individuals with the knowledge, skills, and abilities to perform successfully; two-way street -good fit and who sustain culture 2. Actions of Top Management: establish norms of behavior that filter down through the org. -culture is defined by top management ( attitudes, dress code, etc) 3. Socialization Methods: mentoring, training programs, etc.

Elements of an Organization's Structure

1. To what degree are activities subdivided into separate jobs? Work Specialization 2. On what basis will jobs be grouped together? Departmentalization 3. To whom do individuals and groups report? Chain of Command 4. How many individuals can managers efficiently and effectively direct? Span of Control 5. Where does decision making authority lie? Centralization and decentralization 6. To what degree will there be rules and regulations to direct employees and managers? Formalization 7. Do individuals from different areas need to regularly interact? Boundary Spanning !!!!!!!Think how these elements impact work

Centralization and Decentralization

Centralization- refers to the degree to which decision making is concentrated at a single point in the organization - better for avoiding commission errors (bad choices) EX. Google Adv. of a decentralized organization: - can act more quickly to solve problems - more people provide input into decisions - employees are less likely to feel alienated from those who make decisions that affect their work lives - better for avoiding omission errors (lost opportunities) Ex. Global companies in Malaysia -decentralized b/c headquarters are too far & b/c of government foreigns differences -Sears and JCPenney have given their store managers considerably more discretion in choosing what merchandise to stock in individual stores. allows stores to compete more effectively against local merchants -Procter & Gamble empowered small groups of employees to make decisions about new-product development independent of the usual hierarchy, able to rapidly increase the proportion of new products - Finnish organizations research and development (R&D) offices in multiple locations were better at producing innovation than companies that centralized all R&D in a single office.

The Conflict Process Stage 4: Behavior p466 (chart)

Conflict become visible -statements, actions, and reactions -dynamic process of interaction

The Conflict Process Stage 4: Behavior Conflict management technique p474 (chart)

Conflict-Resolution Techniques Problem solving: meeting face to face for the purpose of identifying the problem and resolving it through open discussion Superordinate goals: creating a shared goal that cannot be attained without the cooperation of each of the conflicting parties Expansion of resources: expanding the supply of a scare resource (menoy, promotion, opportunities, office space) Avoidance: withdrawing from or suppressing the conflict Smoothing: playing down difference while emphasizing common interests b/w the conflicting parties Compromise: having each party to the conflict give up something of value Authoritative Command: letting management use its formal authority to resolve the conflict and then communicating its desire to the parties involved Altering the human variable: using behavioral change techniques such as human relations training to alter attitudes and behaviors that cause conflict Altering the structural variables: changing the formal organization structure and the interaction patterns of conflicting parties through job redesign, transfer, creation of coordinating position, and the like Conflict-Stimulation Techniques Communication- using ambiguous or threatening messages to increase conflict levels Bringing in outsiders- adding employees to a group whose backgrounds, values, attitudes, or managerial styles differ from those or present members Restructuring the organization- realigning work groups, altering rules and regulations, increasing interdependence and making similar structural changes to disrupt the status quo Appointment a devil's advocate- designating a critic to purposely argue against the majority positions held by the group **Communication is the best way

Organizational Climate

D: SHARED perceptions about the organization and work environment; TEAM SPIRIT at the organizational level - climates can interact with one another to produce behavior - climate also influences the habit people adopt

Organizational Culture

D: a system of shared meaning held by members that distinguishes the organization from other; less turnover organizations - culture provides a sense of identity - culture generates commitment to an organization's mission - culture clarifies and reinforces standards of behavior; how to dress & act *****Disney- ABC Television Group Culture (describes culture & employee, they are creative & openness to thoughts, innovative publishing, entrepreneurial ideology)

Institutionalization

D: condition that occurs when an organization takes on a life of its own, apart from any of its members, and acquires immortality - barriers to change; not meeting original goal, take their own route - BARRIERS TO DIVERSITY - strengthening defections - barriers to acquisitions and mergers EX. Southwest is looking for a certain type, but what if they hire a diff. type? companies need to hire different types if not it will effect diversity

Work Specialization

D: contributes to higher employee productivity but at the price of reduce job satisfaction -fairly strong evidence link CENTRALIZATION is associated with higher satisfaction - National culture influences the preference for structure -high power-distance cultures are more accepting of mechanistic structures

Strong Culture

D: core values are intensely held and widely shared Benefits: Keeps them engaged, reduces turnover, tells them what is expected from them, builds cohesiveness, loyalty, and organizational commitment EX. Nordstrom employees know in no uncertain terms what is expected of them, and shape their behavior

Departmentalization

D: grouping jobs together so common tasks can be coordinated - by FUNCTIONS performed (by department combine by one or more) - by TYPE OF PRODUCT OR SERVICE the organization produces - by GEOGRAPHY or TERRITORY; EX. larger companies; agriculture products; different from coast (distributing needs) - by type of CUSTOMER

Change

D: involves making something different - government regulations - environment change - global, local change

Downsizing

D: systematic effort to make an organization leaner by selling off business units, closing locations, or reducing staff

Formalization

D: the degree to which jobs within the organization are standardized - highly formalized job means a minimum amount of decoration; clear expectation, structured - low formalization job behaviors are relatively non-programmed, and employees have a great deal of freedom to exercise discretion in their work

Workplace Stress

D: the emotional state resulting from a perceived difference between the level of occupational demand and a person's ability to cope with this demand Challenge Stressors: pressure to complete tasks, workload, time urgency (can be overcome) Hindrance Stressors: red tape, office politics, confusion over job responsibilities (slower, CAUSES THE MOST STRESS)

Stress

D: the reaction of the human body to these stimuli

The Virtual Structure

D: typically a small, core organization that outsource major business functions - highly centralized, with little or no departmentalization ADV. flexibility, cost savings (no permanent offices); recruitment from a larger pool DIS. unclear roles, goals, and responsibilities no face-to-face cultural alignment

Planned change

D: when change is intentional, goal oriented activity Goals - improve the ability of the organization to adapt to changes in its environment - change employee behavior

The Conflict Process Stage 3: Intentions

Decision to act in a given way Assertiveness: degree to which one party attempts to satisfy his/her own concerns Cooperativeness: degree to which one party attempts to satisfy the other party's concern Competing (AU): satisfy one's need, regardless of the impact on the party Collaborating (AC): parties desire to fully satisfy all parties concerns (WIN-WIN situation) Avoiding (UU): desire to withdraw from conflict Accomodating (UC): willingness to place the opponents interest above his or her own (LOST RESOURCES) Compromising (Midrange): each party to a conflict is willing to give up something (Negotiations)

Stage 5: Outcomes Distributive versus Integrative Bargaining

Distributive Bargaining EX. buying a car, a car dealer is losing money but the customer is winning (Win-Lose) Integrative bargaining EX. designers bags in 2008 market drop and buyers were no longer buying but brands want to make sure they are there for them. Prices drop to show that they care and generous during hard times (Win-Win)

3 Loci Conflict (where the conflict occurs)

Dyadic Conflict: between two people Intra-group Conflict: occurs WITHIN a group/team EX. Group members are not coordinating Inter-group Conflict: BETWEEN groups/teams EX. Department resource issue

Stimulating a Culture of Innovation

Innovation: a more specialized kind of change, is a new idea applied to initiating or improving a product, process, or services - can range from small incremental improvements to radical breakthroughs

Mechanistic Model vs. Organic Structural Models

Mechanistic Model: - Stable environment - High specialization - Rigid departmentalization - Clear chain of command - Narrow spans of control - centralization - high formalization Organi Model: - cross-fuctional teams - cross-hierachical teams - free flow of information - wide spans of control - decentralization - low formalization -* seeing it more now in corporate America

Span of Control

Narrow- Bureaucracy; slows the process down Wide- more popular nowadays - speeds up decision making - closer to customers

Overcoming Resistance to Change

OVERT AND IMMEDIATE resistance: complaints, work slowdown or a strike threat - much easier to spot for a manager (feedback) IMPLICIT OR DEFFERED resistance: loss of loyalty, increase errors, absenteeism - much harder for manager to spot/catch

Individual Differences Influence Negotiations

Personality Traits Moods/Emotions Culture GENDER: men and women are treated differently by negotiation partners -Women value relationship outcomes (MORE ACCOMMODATING) -Men value economic outcomes (AMBIGUOUS SITUATION AS AN OPPORTUNITY FOR NEGOTIATION)

Socialization Model pg. 539

Socialization Process 1. Pre arrival: before being hired; interview 2. Encounter: on boarding stage; how do they ensure a good encounter? Training, mentor/shadowing, routine 3. Metamorphosis: adopt the culture Outcomes 4A. Productivity 4B. Commitment 4C. Turnover

The Conflict Process p.462

Stage 1: Potential Opposition or Imcopatibility Stage 2: Cognition and Personalization Stage 3: Intentions Stage 4: Behavior Stage 5: Outcomes

Sources of Innovation:

Structural Variables: are the most studied potential source of innovation; redesigning the environment - Organic structures positively influence innovation - Long tenure in management is associated with innovation; have experience - Innovation is nurtured when there are slack resources; why change if were happy - Inter-unit communication is high in innovative organizations; teamwork, committees

3 Types of Conflict

Task conflict, Relationship Conflict (most psychological one) & Process conflict

Exhibit 16.5 Reasons for the Growing Interest in Spirituality pg. 547

Which one is/isnt workplace spirituality? - Spirituality can counterbalance the pressures and stress of a turbulent pace of life. Contemporary lifestyles- single-parent families, geographic mobility, temporary nature of jobs, new technologies that create distance between people- underscore the lack of community many people feel and increase the need for involvement and connection - Formalized religion hasn't worked for many people, and they continue to look for anchors to replace lack of faith and to fill a growing feeling of emptiness - Job demands have made the workplace dominant in many people's lives, yet they continue to question the meaning of work - People want to integrate personal life values with their professional lives - An increasing # of people are finding that the pursuit of more material acquisitions leave them unfulfilled

Positive Organizational Culture

career development: - Emphasizes building on employee strengths - rewards more than it punishes - emphasizes individual growth "To create a positive and ethical organizational culture, an organization MUST BALANCE THE RIGHTS OF MULTIPLE STAKEHOLDERS!" -employers, stockholder, bondholders, etc.

Organizational Development Techniques

implementing change Sensitivity training: unstructured group interactions (on board on change) Appreciative Inquiry: discovery, dreaming, designing, delivering; focus on positive change (employees are part of the change)

The Conflict Process Stage 5: Outcomes

conflict is constructive when it(Functional Conflict)... can improves the quality of decisions, stimulates creativity, and innovation, encourages interest and curiosity among group members, provides the medium for problems to be aired and tensions released, and fosters an environment of self evaluation and change *advantages: members can become more active, energized, and engaged in their work conflict is destructive when it (unfunctional conflict)... breeds discontent, reduces group effectiveness, and threatens the group's survival *disadvantages: reduces group effectiveness, poor communications, reduction of group cohesiveness, and subordination of groups goals to the primacy of infighting among members ,reduce member satisfactions and trust

The Conflict Process Stage 2: Cognition and Personalization

conflict issues tend to be DEFINED perceived conflict: awareness by one or more parties of the existence of conditions that create opportunities for conflict to arise felt conflict: emotional involvement in a conflict that creates anxiety, tenseness, frustration, or hostility

Workplace Spirituality

is not about organizes religious practices D: recognizes that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of community EX. Southwest Airlines- ********* one simple ambition- DO THE RIGHT THING. (go beyond the airport)

Decentralization

more of a challenge to have a strong culture -have to come up with a share meaning (points everyone in the same direction) Functions of culture; who is hired; employee's attitude and behavior are compatible with culture, decentralize, etc. EX. Disney theme park hire attractive, clean, and wholesome with bright smile; maintain the image

Distributive Bargaining

research shows that when you are engaged in DB, one of the best things you can do is make the first offer and make it an aggressive one -Shows Power; aggressive, more chances of winning -Establishes an anchoring bias (EX. SALARY-negotiation) -revealing a deadline

Managing Stress at Work: Organizational Approaches

several org. factors that cause stress are controlled by management and can be modified and changed - better selection and placement: screening to see how they respond to stress - goal setting (combined with feedback to reduce anxiety and increase fulfillment): ind. perform better when they have specific goals, realistic communication & receive feedback - redesigning jobs - employee involvement (different responsibilities): meaningful work, more autonomy; gives employees more control over work activities - organizational communication: shape employee perceptions - employee sabbatical: revive and rejuvenate workers voluntary leaves- time to travel, relax, or pursue personal project that consume time beyond normal vacations - wellness programs: physical, psychological and mental conditions workshops to help people quit smoking, alcohol abuse, weight, eating habits, and regular exercise

The Conflict Process Stage 1: Potential Opposition or Imcopatibility

the appearance of conflict arise Antecedent Conditions: *Communication- semantic difficulties, misunderstandings, "noise", jargons, insufficient information, and little to too much communication *Structure- size(too big, too small, too much work), degree of specialization in tasks assign, jurisdictional clarity, leadership style, reward system, & degree of dependence b/w group *Personal Variables- personality, emotions, & values

Traditionalist View of Conflict

the belief that ALL conflict is HARMFUL and AVOIDED

Human Relations View of Conflict

the belief that conflict is NATURAL and INEVITABLE outcome in any group

Interactionist View of Conflict

the belief that conflict is not only a positive force in a group but also that it is ABSOLUTELY NECESSARY for a group to perform EFFECTIVELY -good & functionable -helps innovation & states q -look at different ways of doing things (think outside the box)

Chain of Command

unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies WHO REPORTS TO WHOM -once a basis comerstone in organization design -makes things self managed