BA 350 Exam 3

Organizational Culture definition?

"A common perception, belief, or system of shared meaning held by the organization's members"

Many also serve as a "________" tool for employees - Facilitate? - Improve? - Promote greater sense of? - Increase?

"social media" tool for employees - Facilitate professional networking - Improve employee personal relationships - Promote greater sense of community/culture - Increase collaboration/communication between geographic areas

Power/Politics Negatives: (3)

- Can lead to harassment and/or bullying - Perceived inequalities lead to disharmony/dissatisfaction - Leads to turnover and/or absenteeism

2 Strategies to Eliminate/Reduce Dependency

- Find resource alternatives (e.g., multiple suppliers) - Form alliances, unions, partnerships to reduce the power differential

Examples/Applications of importance of organizational culture:

- New/departing CEOs; Coaching Changes in Sports - Approximately 89% of new hire failures at Fortune 500 firms due to poor cultural fit - AOL: "Cultural Ambassador Hiring Program" ensures the right cultural fit of new hires

Personal Power: Comes from? Typically the most?

- Power that comes from an individual's unique characteristics - These are typically the most effective and enduring sources of power

Impact of Sexual Harassment in Workplace?

-15% of women experiencing harassment quit their jobs; 25% take time off for leave - On average the victims suffer a 10% drop in productivity - US Government estimates it loses approximately $133 million annually due to sexual harassment

Increasing focus on "Corporate Social Responsibility" (CSR) is a critical component of culture. Critical to? Emphasis on?

-Critical to attracting/retaining both employees AND customers - Emphasis on the "Triple Bottom Line" (e.g., People-Planet-Profit)

Power/Politics Benefits: (3)

-Helps motivate employees (via rewards) - Reinforces organizational "norms" - Clarifies chain of command and responsibilities

4 Benefits of Organizational Conflict?

-Improves morale (due to workers' ability to speak freely) - Stimulates new ideas - Critical to growth/innovation - Promotes healthy competition

Benefits of Strong Internal Communications (4)

-Messaging: Establishes clarity/consistency regarding key issues ("Internal PR" as important as External PR!) - Crisis Mitigation: Eliminates anxiety, uncertainty, rumors, and provides justification for key decisions; also allows leaders to maintain control over the internal narrative -Collaboration/ Coordination: Lateral communication is critical to ensuring effective collaboration and cooperation - Leadership/Management: Communication is fundamental to effective leadership/management (e.g., Luthan's Study)

Two general approaches to bargaining and their respective strategies?

1) Distributive Bargaining: Negotiation that seeks to divide up a fixed amount of resources; a win-lose situation -Strategies to utilize include: coercion, anchoring, deadlines 2) Integrative Bargaining: Negotiation that seeks a win-win solution -Strategies include: compromise, collaboration

2 types of organizational communications to consider?

1) Internal: Includes written, email, IM, teleconferencing, etc. 2) External: communications with customers, stakeholders, general public, etc

3 areas (recipient groups) which organizations must interact with Externally:

1) Public Relations (general public, may/may not include customers, political/gov groups) 2)Stakeholder Engagement(Shareholders, board of directors, political and/or gov organizations) 3)Customer Service(direct customers, other businesses serving as clients)

5 Key Negotiation Tactics

1. Anchoring: an aggressive initial offer used to "anchor" your position 2. Opponent's BATNA: always best if you know the opposing party's BATNA 3. "Bluff BATNA": giving the appearance of having a BATNA (e.g., another job offer) 4. Deadlines: deadlines force the opposing party to make concessions 5. Bargaining Chips: using additional, perhaps unneeded requirements for bargaining

3 Common Ways Culture Hinders Change:

1. Barrier to change necessary for rapid change 2. Barrier to diversity: 3. Barrier to acquisitions and mergers

Three bases of Formal Power

1. Coercive: A power base dependent on fear of negative results • Example: peer pressure in groups/teams to conform 2. Reward: Compliance achieved based on the ability to distribute rewards that others view as valuable • Example: feedback on performance assessments, both for managers and junior employees 3.Legitimate: Formal authority to control and use resources based on a person's position in the hierarchy • Example: any formal responsibilities assigned to a position

Three types of Internal Communications:

1. Down: Managerial direction to employees 2. Up: Employee feedback to leadership 3. Lateral: Cross-team/division collaboration

Leadership Behavioral Theory/Study: University of Michigan Study: also identified 2 critical leadership behaviors

1. Employee oriented 2. Production oriented

2 Bases of Personal Power

1. Expert: Influence based on special skills, knowledge, or experience • Example: critical when information becomes a scarce and/or valuable resource) 2. Referent: Influence based on possession by an individual of desirable resources or personal traits • Example: A group member who is charismatic, funny, and/or inspiring

Leadership Behavioral Theory/Study: Ohio State Study- major study evaluated over 1000 types of behavior to measure correlation with leadership effectiveness; identified 2 critical behaviors:

1. Initiating Structure 2. Consideration

4 Benefits of companies perceived as being honest and/or good corporate citizens:

1. Recruitment: A good reputation makes it easier to recruit employees 2. Retention: Employees tend to stay longer, reducing recruitment costs 3. Motivation: Employees are better motivated and more productive 4. Regulatory Compliance: More likely to obtain support from government agencies/regulators

4 Characteristics of Spiritual Organizations?

1. Sense of Purpose 2. Trust/Respect 3. Humanistic Work Practices 4. Toleration of Employee Expression

5 Best Practices for Managers/leaders

1. Starts at the Top: Leadership must set the example and be the primary "source" of info 2. Honesty:"Trust/Honesty" one of the most desired qualities in any relationship 3. Frequency: Must be regular/consistent; when there is interruption, we assume the worst 4. Feedback (aka 2-Way): If people feel they are not being listened to, they will not listen 5. WIIFM (What's In It For Me): Know the needs of employees, clients, stakeholders, etc.

Examples of Servant Leader Models in Business:

5 of Fortune's Top 10 "Places to Work" provide Servant Leadership Training - SAS, Zappos, REI, Starbucks, etc.

Approximately _____% of merger failures are due to cultural inertia

75%

Formal Power is established by?

An individual's position in an organization

Examples of Spiritual Organizations? (3)

Apple - allows employees to spend up to 30 minutes per day in meditation rooms - Google - has a meditation program to help employees think faster and more creatively - McKinsey - offers a framework to clients based on meditation; one Australian company estimated to have saved approximately $20 million

Schein's Model of Organizational Culture 3 Levels?

Artifacts, Beliefs & Values, and Underlying Assumptions

3 CEOs whose leadership impacts consumer perception & organizational culture?

Berkshire Hathaway (Warren Buffett) Chik-fil-A (Dan Cathy) Uber (Travis Kalanick)

Negotiation Process: BATNA means? Is the?

Best Alternative To A Negotiated Agreement Lowest acceptable value (outcome) to an individual for a negotiated agreement; the alternative to a negotiation - This is the "Bottom Line" for negotiations! (any offer higher than this is better than nothing; if the offer is lower it's better to just walk away from the table)

Collaborating Approach best for? (Assertive & Cooperative)

Best for integrative solutions, and creating a win-win solution - Example: Use when critical to get the other party's commitment; e.g., long-term relationship

Avoiding Approach best for? (Unassertive & Uncooperative)

Best for use with trivial issues or insignificant matters - Example: When you prefer to postpone a negotiation, or negotiation is impossible

Compromising Approach best in? (Between Assertive/Unassertive & Cooperative/Uncooperative)

Best in complex negotiations, or both parties equal in power - Example: When opponents are equal in strength and/or deadline looming; complicated situations

Competing Approach best when? (Assertive & Uncooperative)

Best when an immediate decision is needed - Example: Emergency situation or when making an unpopular decision

Accommodating Approach best when? (Unassertive & Cooperative)

Best when trying to satisfy others - Example: When the situation is more important to the other person, or you want to build goodwill (for future favors)

Leadership Trait Theories? (2 Ex)

Big Five Model & Emotional Intelligence Model

Impacts of Leadership/CEO on consumer perception?

CEO serves as a physical representation (e.g., the "face") of the organization - Consumer perceptions of organization colored by perception of CEO/leader - Impacts both consumers AND potential employees

"If you don't maintain Southwest's culture, you don't have anything special."

Colleen Barrett, former President Southwest Airlines

Correlation between strong Organizational Culture and?

Company Performance 26 leading companies given a "Culture Score" - Earnings evaluated over 10 year period - 6 of 7 "High Performers" had above average earnings

5 Conflict Resolution Approaches in regards to assertiveness/cooperativeness:

Competing, Collaboration, Avoiding, Accommodating, Compromising

Conflict in Organizations: -Constructive? -Most theories of conflict/negotiation argue?(2 things)

Considered constructive to have some conflict in organizations - Most theories of conflict/negotiation argue 1. conflict is a positive force in group dynamics 2. conflict=more effective group performance

Organizational Culture reflects? Ethical Leaders create?

Culture reflects the senior leadership (for good or bad!) Ethical leaders create "ethical cultures"

Characteristics of Underlying Assumptions

Deeply held, unconscious beliefs (values accepted as being self evident, taken for granted)

Impacts of increased CSR initiatives

Employee Engagement: Strongly correlates with increased employee engagement (companies with "strong CSR" have 55% higher morale, 38% higher loyalty than those with "low CSR") Customer Loyalty: 75% of consumers would switch to brands associated with a good cause if price/quality are equal

Organizational Communications

Encompasses any and all communications that occur inside and/or outside of an organization

Leadership Theory: Contingency Theory? Ex of a Contingency Theory?

Environment in which the leader exists is the primary determinant (Trait and behavior theories cannot explain for all situations) -Fielder's Model

Financial Impact to companies who "bully"

Estimated cost to US companies of $200 Billion annually - Employee performance declines 20-40% on average - 30% of bullied employees leave their jobs within one year - 20% of witnesses to bullying will leave their jobs within one year

Integrative Characteristics: Goal Motivation Focus Information Sharing Duration of Relationships

Goal: Expand the pie Motivation: Win-Win Focus: Interests Information Sharing: High Duration of Relationships: Long-Term

Distributive Characteristics: Goal Motivation Focus Information Sharing Duration of Relationships

Goal: get as much pie as you can Motivation: Win-Lose Focus: Positions Information Sharing: Low Duration of Relationships: Short Term

Servant Leader Model was modeled on?

Great spiritual leaders: Buddha, Lao Tzu, Ghandi

"The culture of any organization is shaped by the worst behavior the leader is willing to tolerate."

Gruenter & Whitaker

Transactional Leader

Guide followers by clarifying task and goal requirements

Characteristics of Beliefs & Values (3)

Ideals(values, aspirations) Goals(strategic plan-mission statement) Printed Material (publications, official docs)

Barrier to acquisitions and mergers

Incompatible cultures can destroy a merger

Transformational Leader

Inspire their followers to transcend their self-interests through words/ideas. Typically described as extraordinary, heroic, and visionary

Most fortune 500 firms have some kind of _______ knowledge "network" - ___% of Fortune 500 Firms have adopted an internal social/professional networking tool - Serves as? - Serve as "wiki"?

Internal Knowledge Network - 90% of Fortune 500 Firms have adopted an internal social/professional networking tool - Serves as an administrative database - provide access to HR policies, employee info, etc. - Serve as "wiki" -- e.g., document archive/knowledge repository

Servant Leader Model: Leaders lead by? Popularized by?

Leaders who lead by giving priority to the needs of colleagues and serving others - Popularized by Ken Blanchard & Robert Greenleaf

Organizational Culture is defined most by:

Leadership/Management via -Employee selection -Establishment of basic rules/boundaries -Serve as role models

Leadership v. Management

Leadership: coping with change Management: coping with complexity -Many senior managers/leaders have one skillset but lack the other - Both necessary for organizational success (often great "leaders" rely on highly adept "managers" to handle day-to-day details of running a business)

8 Characteristics of Servant Leader Mode1?

Listening, Empathy, Healing, Awareness, Persuasion, Conceptualization, Foresight, Stewardship (CHAPELS F)

"Fixing the culture is the most critical - and most difficult - part of a corporate transformation."

Lou Gerstner, retired CEO of IBM

Culture and Change: Case Examples (Microsoft, Sprint/Nextel, Daimler/Chrysler, Hewlett-Packard/Compaq)

Microsoft: Near-monopoly status created a culture notorious for being risk-averse and has resulted in lack of innovation and "copy-cat" approach to product development Sprint/Nextel: Nextel's laid-back "start-up" atmosphere clashed with Sprint's formal bureaucratic style Daimler/Chrysler: incompatible cultural differences doomed merger Hewlett-Packard: a series of leadership changes and merger with Compaq conflicted with traditional "HP Way"culture

Bullying v. Sexual Harassment

More likely for men to be victims - More difficult to define (e.g., examples of bullying include: criticism, yelling, intimidation, refusal to communicate, etc.) - Most forms are not considered illegal

Examples of Companies who utilize Social Networking

NASA Spacebook, Dell Charter, and IBM's "Connections"

CSR Nike Example

Nike: 27% drop in earnings following allegations of child labor

Barrier to change:

Occurs when culture's values are not aligned with the values

External Communications Importance

Open communications with stakeholders, clients, the public, etc. is essential - Golden Rule of PR: Perception is reality!

What is Sexual Harassment?

Overt actions (unwanted touching) are relatively easy to spot (not very common) - Subtle actions (jokes, looks, insinuations) can be interpreted as harassment (more common)

What differentiate leaders from non-leaders?

Personality, physical, or intellectual traits differentiate leaders from non-leaders

Face-to-Face Pros/Cons

Pro: Greatest Emotional Content Con: No documented, written record. Not effective for official correspondence

Email Pros/Cons

Pro: Quickly written, sent, and stored; low cost for distribution Con: Messages can be misinterpreted, Not appropriate for negative messages, Overused and overloading readers

Leadership Behavioral Theories propose? Can leadership be learned according to behavioral theories?

Propose that specific behaviors differentiate leaders from non-leaders - Yes, Leadership is a skill set and can be taught to anyone

IM Pros/Cons

Pros: Explosive growth in business, Fast and inexpensive Cons: Can be intrusive and distracting, Can be seen as too informal

Enterprise Social Networking

Pros: Internal coporate networks such as IBM's BluePages Cons: Can reduce productivity in many organizations if not used constructively

Video-conferencing

Pros: Now uses inexpensive webcams and laptops in place of formal videoconferencing rooms Cons: Certain situations still require face-to-face interaction

Recognition of "Workplace Spirituality"

Recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of the community - NOT about organized religious practices; about helping employees find meaning and purpose in their work and reach their potential - Closely related to concept of Servant Leadership

Big Five Model

Several dimensions correlate well to leadership performance (e.g., Extroversion, Conscientiousness, Openness to Experience)

Most common (and costly) abuse of power in the workplace?

Sexual Harassment

Emotional Intelligence Model

Social management ability is also a good predictor of leadership

"Everything I do is a reinforcement, or not, of what we want to have happen culturally...You cannot delegate culture."

Steve Ballmer, Microsoft CEO

Ex of Transformational Leaders

Steve Jobs, Richard Branson, Jack Welch; Great Inspirational Leaders (Ghandi, Nelson Mandela)

Barrier to Diversity:

Strong cultures put considerable pressure on employees to conform, which may lead to institutionalized bias; lack of diversity of thought/perspective (e.g., groupthink)

Characteristics of Artifacts: (4)

Symbol (Architecture, logo, clothing, decor) Stories(frequently told, historical meaning) Rituals (everyday practices repeated over and over) Ceremonies(specific activities routinely enacted)

According to Fielder's Model, Leaders are either ________ Motivated or _____ Motivated. Effectiveness is dependent on: (3)? Seeks to explain?

Task Motivated or Relationship Oriented. 1. Leader-Member Relations 2.Task Structure 3. Position Power >seeks to explain why good leaders can fail in certain situations

Leadership

The ability to influence a group toward the achievement of goals

Power?

The capacity that person A has to influence the behavior of person B so that person B acts in accordance with person A's wishes

Power and the "General Dependency Postulate": Theory States? Power/Politics are?

Theory states that "Power" is a function of "Dependency" Power/Politics are a natural result of resource scarcity (and thus are present in any organization)

"If you get the culture right, most of the other stuff will just take care of itself."

Tony Hsieh, Founder and CEO of Zappos.com

Examples of Companies who are activity apply CSR? (3)

Whole Foods - emphasis on organic, sustainable products, recycling and energy conservation REI - has a VP of CSR to lead implementation of environmental conservation initiatives Starbucks - emphasizes sustainable-grown, free-trade coffee and local community initiatives

Is leadership inherent, according to leadership trait theories?

Yes

Employee-Oriented Leadership Behavior

ability to foster interpersonal relationships between leader and followers

Consideration Leadership Behavior

ability to gain trust and respect of followers and make them feel appreciated

Production-Oriented Leadership Structure

ability to understand technical aspect of a job

4 Traits of Transformational Leaders

articulate vision, personal risk, sensitivity to others, extraordinary behavior

Too much harmony leads to?

complacency and/or group think

Initiating Structure Leadership Behavior

defining and structuring employee roles to align with organizational goals

Fiedler's Model

theory matches the leader to the situational context -Leadership style is fixed; we cannot change our style -The situation determines the type of leader required -Anyone can be a successful leader if their leadership style matches the situational needs

Leadership focuses on? Requires? Focuses on? Influence is?

• Focuses on goal achievement • Requires compatibility with followers • Focuses influence downward • Influence is enduring

Power is used as? Requires? Used to? Influence is?

•Used as a means for achieving goals • Requires follower dependency •Used to gain lateral and upward influence • Influence is fleeting