MGT 291 Final Exam

What influences organizational structure?

-Business strategy -External environment -Nature of the organization's talent -Organizational size -Expectations of how employees should behave -Organization's production technology -Organizational change Chart on page 470 provides examples of each of these

Network organization

A collection of autonomous units or firms that act as a single larger entity, using social mechanisms for coordination and control. Example: H&M has a team of 100 in-house designers who work with buyers to develop its clothing, which is then outsourced to a network of 700 suppliers. This allows H&M to be more flexible than many of its competitors and to keep its costs down

Level 5 leadership

A combination of transactional and transformational leadership styles focused on long-term company performance. Level 5 leaders are humble and willing to take the blame for failure while simultaneously setting high standards and demonstrating an unwavering resolve to do whatever it takes to produce the best long-term results. Ex: Bob Moore gave the company to his 209 employees after more than 30 years in business, he said 'It's the only business decision that i could make. I don't think there's anybody worthy to run this company but the people who built it."

Divisional structure

A division is a collection of functions organized around a particular geographic area, product or service, or market. Divisional structures are common among organizations with many products or services, geographic areas, and customers -Divisional structures improve coordination across functions and enable flexibility in responding to environmental changes because employees' expertise is focused on specific products, customers, and/or geographic regions

How leaders create and maintain culture

A leader has to define the culture to support the business strategy, consistently behave in ways that demonstrate the culture, explain the culture to employees so they understand why it is critical, and then hold him or herself and others accountable for maintaining it

Storming

A stage of conflict in which team members begin establishing goals, work processes, and individual roles. Tests how the team will respond to differences among team members and to conflict

Organizational culture

A system of shared values, norms, and assumptions that guide members' attitudes and behaviors and influences how they perceive and react to their environment. Cultures are made up for formal and informal practices, artifacts, espoused values and norms, and assumptions

Team efficacy

A team's shared belief that it can organize and execute the behaviors necessary to reach its goals. Team efficacy is strongly related to team performance, particularly when team interdependence is high

E-leadership

Addresses the human interactions that now occur through information technology. E-leaders use technology to enhance, improve, and refine relationships in an organization's structure and environment. Example: a participative leader may set up chat rooms to solicit input on an important decision. Anonymous commenting during meetings can encourage honest input, and electronic polls can take the pulse of current opinions.

Emotional intelligence

An interpersonal capability that includes the ability to perceive and express emotions, to understand and use them, and to manage emotions in oneself and other people. Setting the right ground rules for a team and maintaining positive team processes require an emotionally intelligent leader. The best leaders pay attention to an act on their sense of what is going on in the team. Example: The U.S. Air Force and L'Oreal use emotional intelligence training to improve team performance.

Virtual organizations

An organization that contracts out almost all of its functions except for the company name and managing the coordination among the contractors. A virtual organization may not even have a permanent office. Virtual organizations often use virtual teams linked by technology, although employees may still meet face-to-face -tend to be very complex Example: Sigma is a German training and consulting company whose freelancing consultants and trainers build small or large teams as needed to work on projects. Sigma partners work from their home offices, some full-time for Sigma, and other temporarily if their competencies are needed on a project. An information technology system called SigSys enables communication

Learning organization

An organization that facilitates the learning of all its members and continually transforms itself. In a learning organization, continual learning and change become part of the culture -Without reflection, tasks may be completed, but learning does not occur

Functional structures

An organizational structure that groups people with the same skills, or who use similar tools or work processes, together into departments. Example: A marketing department is staffed solely with marketing professionals. When Cisco Systems changed from a decentralized structure to a functional structure, it decreased the duplication and greater standardization of its products and process designs and reduced costs -Functional structures tend to work well for organizations in stable environments selling only a few products or services because of the increased economies of scale

Centralized organizations

Concentrate power and decision-making authority at higher levels of the organization

Lattice structure

Cross-functional and cross-level sub-teams are formed and dissolved as necessary to complete specific projects and tasks -common in consulting organizations Example: Gore observed that during a crisis, companies create task forces that throw out the rules, take risks, and make big breakthroughs. Gore created a lattice structure with minimal hierarchy and few rules, organizing the company as if it were a bunch of small task forces

Leader member exchange theory

Describes how leaders develop different relationships with different subordinates over time. Proposes that leaders usually develop a special relationship with a subset of subordinates (the in-group). Members of the in-group serve as trusted advisors and assistants and have greater influence, autonomy, and tangible benefits in exchange

Organizational chart

Diagram of the chain of command and reporting relationships in a company. Higher levels in an organizational chart supervise and are responsible for the activities and performance of the levels beneath them

Demographic diversity

Diversity in age, gender, race, and other demographic characteristics. Often has a negative impact on performance. Team conflict tends to increase and teams tend to perform lower as they become more demographically diverse. More difficulty utilizing their informational diversity because team members are not able to work effectively with different others. When this happens, the potential for demographically diverse work teams to perform more effectively is lost.

Informational diversity

Diversity in knowledge and experience. Has a positive impact on team performance. Ex: Manager Richard Gabriel looks for a range of interests and skills when building a team. "What I look for is diversity. People who are diverse in their talents. People who are used to failure. People who are used to revision...Creativity is largely a matter of triggers. You need a diverse amount of material and a diverse group that can respond without ego."

Effective leadership

Effective leadership reflects a balance of: 1. A leader's traits and skills 2. A leader's style or behaviors 3. Combined in a way that best fits the followers and is most appropriate for the situation at hand

Change agents

Employees or outside experts who assist with all phases of the change process, especially the resolution of conflicts

Matrix structure

Employees report to both a project or product team and to a functional manager. Matrix structures generate complex reporting relationships because a matrixed employee essentially has two bosses: the project or product boss and his or her functional manager. Matrix organizations are good at providing quality customer service, are very flexible, and can respond quickly to changes because the work units contain all of the needed functional expertise to make decisions

Global teams

Face-to-face or virtual teams whose members are from different countries. Ex: Procter & Gamble uses global teams to allow employees at its Cincinnati headquarters to collaborate with employees and suppliers all over the world

Fiedler's leader match model

Fiedler argues that leader effectiveness depends on two interacting factors: leadership style and the degree to which the situation gives the leader control and influence. The leader match model proposes that a person's leadership style is part of who that person is and cannot be changed. Fiedler did not believe that leaders can adopt different styles in different situations. Instead, he proposed two ways to make leaders more effective: match them to the situation to which they are best suited, or change the context to suit the leader's style. -model has been criticized because it does not explain why some people are more effective in different situations.

Forming

First stage of team development in which members learn about each other and the team's goals, purpose, and life span.

Organic

Flexible, decentralized structures with less clear lines of authority, decentralized power, open communication channels, and a focus on adaptability in helping employees accomplish goals

Leadership effectiveness in different cultures

For example: some cultures are more individualistic and others focus more on preserving group harmony. Since no one berates an Indonesian in public, when an American oil rig supervisor in Indonesia shouted at an employee to take a boat to shore, a mob of outraged workers chased the supervisor with axes. -Different cultures have different norms and expectations about what is appropriate leader behavior, and about the use of power and influence -It is important to understand the impact of culture on leadership effectiveness not only because companies are increasingly operating in multiple countries, but also because increasing diversity in the workplace means that most Western businesses employ people from many cultural backgrounds

Leadership

Guiding and influencing others to work willingly toward the leader's objectives. Leaders set team goals, train team members, provide feedback, manage resources, support the team, and perform a variety of other roles. At its best, leadership inspires and motivates employees to work hard toward organizational objectives and help the organization succeed. At its worst, leadership can reduce the performance of individual employees as well as the entire organization, and even result in unethical behavior and organizational collapse.

Team-based structure

Horizontal or vertical teams define part or all of the organization. In this structure, performance team members from different functions are permanently assigned to the project or product team and do not report to a second functional manager. Example: Whole Foods Market, the largest natural-foods grocer in the United States, has an average of ten self-managed teams in each store. Team leaders in each store and in each region are also a team. -Team-based structures are best when collaboration and inputs from several functional areas are required

Ohio State and University of Michigan studies

Identified two dimensions of leadership style: concern for task results and concern for people: -Concern for task results emphasizes the achievement of concrete goals. Leaders look for ways to organize people and activities that will best accomplish these goals. Concern for task results includes planning, organizing, and defining the required tasks -Concern for people emphasizes the social and emotional needs of individuals. Leaders with a high concern for people generate trust, respect, work satisfaction, and self-esteem by being respectful and friendly

Multicultural team challenges

It is easy to assume that challenges in multicultural teams are just due to differing communication styles, but different attitudes toward hierarchy and authority and conflicting norms for decision making can also create barriers to a multicultural team's ultimate success.

Is gender important to leadership?

It is important to not that while males and females may differ in respect to participative management and punishment tendencies, research has fond males and females to be equally effective as leaders. Constraints facing women in management may stem from institutional biases (if i'm a man, i'm more likely to hire someone like myself, another man) and inaccurate gender stereotypes

Followership

Leaders cannot lead if the followers refuse to follow. Leadership is not just guiding and influencing others to work willingly toward the leader's objectives. It also mean followers' willing compliance with the goals or vision of the leader. Effective followers are important to effective leadership

Charismatic leaders

Leaders idealized by followers who develop strong emotional attachments to them. Charismatic leaders try to increase followers' commitment to ideological goals and also their commitment to the leader. Charisma helps leaders to gain followers' respect, pride, trust, and confidence. Charismatic leaders are self-confident, dominant, extraverted, and possess strong convictions in their beliefs and moral righteousness. They are willing to take personal risks in the name of their beliefs

Are certain traits or skills associated with leadership?

Leaders seem to have higher internal control orientation, emotional maturity, intelligence, self-confidence, determination, integrity, and interpersonal skill

Transactional leadership

Leadership based on a reciprocal exchange of something of value that the leader possesses or controls and that the follower wants in return for his or her services. By offering jobs in exchange for work done, or bonuses in exchange for extra effort or good performance, leaders are able to influence and motivate others

Transformational leadership

Leadership that inspires followers to adopt the values and goals of the leader and put aside their own self-interests for the good of the organization. Transformational leaders inspire followers through a clear mission, optimism, enthusiasm, and emotional appeals. Ex: When Steve Jobs told his team at Apple that they were making a dent in the universe, they believed they were making a dent in the universe. Transformational leaders are 1.Inspirational, 2.Considerate, and 3.Intellectually stimulating

Is leadership different from management?

Management is an important 'function' in every organization. Management exists to establish and implement the procedures, processes, and practices that help the firm function smoothly. Leadership is a 'relationship' between the leader and the led. Leadership is the behavioral and interpersonal aspect of what managers do. Leaders may not have a formal leadership position - anyone in a firm can and should engage in leadership behaviors. Management controls, arranges, does things right; leadership unleashed energy, sets the vision so we do the right thing.

Cross-functional teams

Members come from different departments or functional areas. This is one of the most common types of work teams. Ex: A top management team with members representing different functions or units of the organization. Ex: IDEO believes that interdisciplinary teamwork boosts innovation and creativity. Teams share and improve ideas, building on their members' skills and providing more opportunities for problem solving. IDEO and a bunch of other companies formed a cross-functional team that worked together to integrate technology to improve patient care at the Mayo Clinic. Cross-functional team strengths: Get things done faster with customer service and new product development, increased creativity, improves firm's ability to solve complex problems by bringing different skill sets, perceptions, and experiences together. Because they bring diverse people from different functional areas together, they also increase employees' knowledge about other areas of the organization. This diversity can also be a weakness if this diversity is not properly managed and conflicts are not effectively handled

Functional teams

Members come from the same department or functional area. Ex: A team of marketing employees and a team of finance employees are examples of functional teams

Virtual team leadership skills

One expert identified five categories of important leadership skills in virtual project team or distance management situations: 1.Communicating effectively and matching technology to the situation 2.Building community among team members based on mutual trust, respect, affiliation, and fairness 3.Establishing a clear and motivating shared vision, team purpose, goals, and expectations 4.Leading by example and focusing on measurable results 5.Coordinating and collaborating across organizational boundaries

Does culture matter?

Organizational culture is the key to organizational success, and the function of leadership is the creation and management of culture. Culture boosts organizational performance when it (1) is strategically relevant, (2) is strong, and (3) emphasizes innovation and change to adapt to a changing environment -A company's culture should reinforce its business strategy, and can give a firm a competitive advantage. If a business strategy and corporate culture are pulling in two different directions, the culture will win no matter how good the strategy is

Ethical behavior in teams

Other people's ethical behavior influences our own ethical behavior. This is particularly true for managers, highlighting the importance of consistently setting a good example as a manager. Four ethical issues are especially important in teams: 1.How do teams fairly distribute work? 2.How do teams assign blame and award credit? 3.How do teams ensure participation, resolve conflict, and make decisions? 4.How do teams avoid deception and corruption?

Transformative change

Radical change that tends to be both multidimensional and multilevel, involving discontinuous shifts in thinking or perceiving things. Example: incremental change is like rearranging the furniture in a room, while transformative change is like asking if this is even the building where we should be

Mechanistic organizations

Rigid, traditional bureaucracies with centralized power and hierarchical communications

Self-directed teams

Set their own goals and pursue them in ways defined by the team. Team members are responsible for tasks typically reserved for team leaders or managers, including scheduling work and vacations, ordering supplies, and evaluating their performance. Ex: At 3M, self-directed work teams have made improvements in products, services, and processes while increasing customer responsiveness, lowering operating costs, increasing productivity, and decreasing cycle times. Self-directed teams can improve commitment, quality, and efficiency, though self-directed teams are difficult to implement because they require specific self-management and team skills that many employees lack

Forces creating a need for change

Some common external drivers of change include: -Increased competition -Globalization -Changes in consumer demands -Governmental regulations -Deregulation -Resource shortages

Barriers to change

Some of the most common barriers to organizational change: -Habits -Power and influence -Limited resources -Misunderstandings -Saving face -Fear of the unknown -Tolerance for ambiguity

Teamwork competencies

Some of the teamwork abilities you should look for are: -Conflict resolution abilities -Collaborative problem-solving abilities -Communication abilities -Goal-setting and self-management abilities -Planning and task coordination abilities

Overcoming resistance to change

Strategies for overcoming resistance to change: -Communication -Ensure that staffing and performance appraisals support the change -Participation -Promote fairness perceptions -Negotiation -Manipulation and coercion -Incentives -Pilot programs -Organizational development

Enhancing effective teams

Team effectiveness has 3 components: a quality team product, an improved ability to work together effectively in the future, and a team experience that is meaningful and satisfying for its members

Virtual teams

Teams whose members are linked by technology. Some virtual team members may never see each other face-to-face. Ex: PricewaterhouseCoopers uses virtual teams to bring employees from around the globe "together' for a week or two to prepare work for a particular client. Ex: Whirlpool Corporation used a virtual team composed of experts from the United States, Brazil, and Italy during a two-year project to develop a chloroflourocarbon-free refrigerator

Decentralized organizations

The authority for making decisions affecting an organization is distributed. Gives lower levels more authority and autonomy for making decisions. Flatter structures promote innovation and increase the speed of decision making, and can save money as a result of few management layers. Decentralization is best when the organization performs non-routine tasks in complex environments because it empowers the managers closest to the environment to make decisions and quickly implement them. -Organizations do not have to be fully centralized or decentralized

Division of labor

The degree to which employees specialize or perform a variety of tasks as generalists. Highly specialized firms have a greater proportion of 'specialists' who focus their attention on a well-defined set of tasks. Lower levels in an organization tend to be more specialized than higher levels

Cohesiveness

The degree to which members are attracted to the team and to its members, and how loyal team members are to the team and to each other. Members of a highly cohesive team are motivated to stay in the team, contribute as much as they can, and conform to team norms. High cohesiveness can interfere with team effectiveness if it encourages the wrong norms and goals. For example: a highly cohesive team that pursues its own goals of having fun and socializing rather than accomplishing organizational goals is not effective. Factors that promote cohesiveness include a smaller team size, team success, the effective management conflict, and friendly competition with other teams

Ethical leadership

The demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such conduct to followers through two-way communication, reinforcement, and decision making. Leaders set an example for others whether they intend to or not. Employees pay attention to company leaders and the ethical standards they set in part because leaders are prominent authority figures able to gain employees' attention and hold them accountable to ethical standards

Organizational structure

The formal system of task, power, and reporting relationships. Organizational structure is the core of what coordinates, controls, and motivates employees to cooperate toward the attainment of organizational goals. When the organizational structure is aligned with organizational needs, it results in greater organizational efficiencies and less conflict

Appropriate team size

The insight that teams can get bogged down if they are too big is a good one. Although larger teams technically have more resources available, members of smaller teams are better able to interact and share information, tend to be more motivated and satisfied, and can more clearly identify their contributions to the team. A team should be only large enough to contain the expertise it needs to get its work done without compromising individual and team productivity. Generally teams should have fifteen or fewer members; the ideal number is about seven. Example: Jeff Bezos of Amazon believes that if you cannot feed a team with two pizzas, the team is too big and will be hindered by bureaucracy

Span of control

The number of people reporting directly to an individual. Narrower spans of control are necessary for novel and complex tasks. Wider spans of control give subordinates greater autonomy and responsibility for self-management, and are best for routine, production-type work

Process gain

The performance improvements that occur because people work together rather than independently. Process gain is the goal of working in teams - people working together doing more and doing it better than would be possible working alone

Organizational design

The process of selecting and managing aspects of organizational structure and culture to enable the organization to achieve its goals. Designing and redesigning the organization in response to internal and external changes is a key managerial function

Norming

The team becomes more cohesive and clarifies members' roles and responsibilities, team goals, and team performing. Cohesiveness increases as team members accept their teammates' differences and recognize that the diversity of member opinions and perspectives strengthens the team

Performing

The team is cohesive, productive, and makes progress towards its goals. The team has a shared understanding of why it is doing what it is doing. Disagreements in the team are positively resolved and there is a focus on goal achievement. Team rules may become more flexible

Path-goal theory

Theory is based on the expectancy theory of motivation, which proposes that motivation to exert effort is based on a person's belief that (1) he or she has the ability to accomplish a goal, (2) goal accomplishment will lead to rewards, and (3) these rewards are attractive or valued. Path goal theory reflects the belief that effective leaders increase the personal rewards subordinates receive for attaining goals and clarify the path to these goals by reducing roadblocks. The core assumption is that subordinates will be motivated if they think they can do their work and get a favorable outcome for doing so. Path-goal theory focuses on four leadership styles: 1. Directive leadership 2. Supportive leadership 3. Participative leadership 4. Achievement-oriented leadership

Process loss

When a team of people working together performs worse than the individual members would have if they had worked alone. Process loss can be reduced by making clear role and task assignments and not tolerating free riders

Social loafing

When people put less effort into a task when working with a team than they do when working alone. Social loafing is a primary cause of process loss

Adjourning

When the team disbands. Ideally, the team is ending because it has accomplished its goals and everyone feels good about what it has achieved. Holding a closing celebration that acknowledges the contributions of each team member and the accomplishments of the team as a whole formally ends the existence of the team. This is a good time to evaluate the team's processes and outcomes in order to identify 'lessons learned' that can be passed on to other team leaders

Differences between work groups and work teams

Workgroups and teams both require members to be competent at doing their required tasks, but teams also require social skills. Groups also have a clear, formal leader or manager who makes decisions for the group. Group members may make decisions for themselves as individuals, but not for the group as a whole. Teams, on the other hand, engage in shared decision making, and have a shared or rotating leadership role. Because of these differences, managing teams is more challenging than groups because they are not always the best way of organizing work. When work can be done best by individuals or workgroups, it is usually better not to use teams.

Hersey's situational leadership model

has two pillars: leadership style and the maturity level of those being led. To Hersey and Blanchard, their leadership styles stem from four basic behaviors, designated with a letter-number combination: v Delegating Works best when followers are confident Participating Works best when followers have the ability to do something but are insecure and need support Selling Works best when followers have minimal competence but are willing to do the job Telling Works best when followers lack confidence or don't know how to do something