Exam #2 Management
line function
an activity that contributes directly to creating or selling the company's products
staff function
an activity that does not contribute directly to creating or selling the company's products but instead supports line activities
Job Characteristics Model (JCM)
an approach to job redesign that seeks to formulate jobs in ways that motivate workers and lead to positive work outcomes- -employee centric job design method to maximize employee motivation and work effectiveness
personality test
an assessment that measures the extent to which an applicant possesses different kinds of job-related personality dimensions
Bona Fide Occupational Qualification (BFOQ)
an exception in employment law that permits sex, age, religion, and the like to be used when making employment decisions, but only if they are "reasonably necessary to the normal operation of that particular business." are strictly monitored by the Equal Employment Opportunity Commission
variable ratio reinforcement schedule
an intermittent schedule in which consequences are delivered following a different number of behaviors, sometimes more and sometimes less, that vary around a specified average number of behaviors
fixed ratio reinforcement schedule
an intermittent schedule in which consequences are delivered following a specific number of behaviors
fixed interval reinforcement schedule
an intermittent schedule in which consequences follow a behavior only after a fixed time has elapsed
variable interval reinforcement schedule
an intermittent schedule in which the time between a behavior and the following consequences varies around a specified average
organic organization
an organization characterized by broadly defined jobs and responsibilities; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge
mechanistic organization
an organization characterized by specialized jobs and responsibilities; precisely defined, unchanging roles; and a rigid chain of command based on centralized authority and vertical communication
modular organization
an organization that outsources noncore business activities to outside companies, suppliers, specialists, or consultants
performance management -performance appraisal (past) (behavior and results, objective and subjective data) -development guidance (future) -ongoing informal and formal feedback -self appraisals -360 degree appraisals -voluntary and involuntary seperations -downsizing -early retirement
assessing and improving performance -performance appraisal (_______) (_______ and _______, objective and subjective _______) -development guidance (_______) -_______ informal and formal _______ -_______ appraisals -_______ degree appraisals -voluntary and involuntary _______ -_______ -early _______
Geographic Departmentalization -advantage: helps companies respond to demands of different markets, reduce costs by locating unique organizational resources closer to customers -disadvantage: (primary) lead to duplication of resources
based on different geographic areas or markets in which the company does business -organizing work and workers into separate units responsible for doing business in particular geographic areas -units are geographic areas (Northeast, US, Canada, Latin America, etc.) -drives good regional credibility, but weak functional synergies -drives product/service excellence, but weak functional synergies -advantage: helps companies respond to _________ of different markets, reduce _________ by locating _________ organizational resources closer to customers -disadvantage: (primary) lead to _________ of resources
Functional Departmentalization -purchasing, manufacturing, marketing, finance, HR, RD -drives functional excellence, but silo-oriented -advantages: work done by highly qualified specialists, lowers costs by reducing duplication, communication and coordination less problematic for departmental managers -disadvantages: cross-department coordination can be difficult, slower decision making and produce managers and workers with narrow experience and expertise
based on the different business functions or types of expertise used to run a business -organizing work and workers into separate units responsible for particular business functions or areas of expertise -units are business functions (accounting, sales, purchasing, manufacturing, marketing, finance, HR) -drives ___________ excellence, but _____-oriented -advantages: work done by highly _________ specialists, lowers _________ by reducing _________, communication and coordination _________ problematic for _________ managers -disadvantages: _________-department coordination can be _________, _________ decision making and produce managers and workers with narrow _________ and _________
5 steps of reinforcement theory: -identify -measure -analyze -intervene -evaluate 1. dont reinforce the wrong behaviors 2. correctly administer punishment at appropriate time 3. choose simplest and most effective schedule of reinforcement
5 steps of reinforcement theory: -____________ (means singling out critical, observable, performance related behavior) -____________ (determining the baseline frequencies of the behaviors) -____________ (studying the causes and consequences of these behaviors) -____________ (changing the organization by using positive and negative reinforcement to increase the frequency of these critical behaviors) -____________ (assessing the extent to which the interventions actually changed workers behavior) Managers also keep in mind 3 things 1. dont reinforce the ____________ behaviors 2. correctly administer ____________ at appropriate time 3. choose ____________ and most ____________ schedule of reinforcement
Balanced Scoreboard ØBuilt from selection of limited Key Performance Indicators (KPIs): •Critical for strategy execution and/or focus on key corporate challenges •Performance measured against objectives ØCommunicated and translated by all organizations into own objectives ØRegularly reviewed in management meetings at all levels, with focus on deviations and actions needed ØHighly customized for each company strategic focus and key specific challenges
Balanced Scoreboard ØBuilt from selection of limited ______ ______ ______ (KPIs): •Critical for strategy ______ and/or focus on key corporate ______ •Performance measured against ______ ØCommunicated and translated by all organizations into own ______ ØRegularly reviewed in management meetings at all levels, with focus on ______ and ______ needed ØHighly customized for each company strategic ______ and key specific ______
Basic control process steps: managers set organizational goals •Set performance standards and objectives to match goals c. identify the companies against which to benchmark those standards. •Measure actual performance •Identify (actual or potential) deviations •Produce recovery actions/develop and implement programs to correct them
Basic control process steps: managers set organizational __________ Set __________ standards and objectives to match goals identify the companies against which to _________ those standards. •__________ actual performance to performance standards •__________ (actual or potential) deviations •Produce __________ actions/develop and implement __________ to correct __________
financial ratios
calculations typically used to track a business's liquidity (cash), efficiency, and profitability over time compared to other businesses in its industry
Alferders ERG Theory -existence: safety and physiological needs -relatedness: belongingness -growth: esteem and self-actualization
collapses maslows 5 into 3 -_________: safety and physiological needs -_________: belongingness -_________: esteem and self-actualization
companies today are using reengineering and empowerment to change their intraorganizational processes
companies today are using __________ and __________ to change their intraorganizational processes
economical, easy to learn, and dont require highly paid workers
companies use specialized jobs because they are: ________, ________ to ________, and dont require ________ paid ________
mastery
continuous learning , personal developement, expertise
corporate actions to prevent discrimination -clear corporate policies -0 tolerance culture -mandatory training -transparent data and reporting Other employment laws: -enforced by department of labor -fair labor standards act -family and medical leave act -uniform service employee and reemployment act other labor laws: -ilabor laws -occupational safety and health act
corporate actions to prevent discrimination -clear _________ policies -0 _________ culture -mandatory _________ -_________ data and reporting Other employment laws: enforced by department of labor (Major federal employment laws)= -Fair _______ ________ act 1938: establishes the fed minimum wage and rules regulated overtime to pay (eligibility and rates), record keeping, and child labor -_______ and ______ leave act 1993: permits workers to take up to 12 weeks of unpaid leave for pregnancy and or birth of a new child; illnesss of immediate family member, or personal medical leave -_________ services employment and ___________ rights act of 1994: prohibits discrimination against those serving in armed forces reserve, national guard, and other uniformed services; guarantees civilian employers will hold and then restore civilian jobs other labor laws: -________ laws: regulate interaction between management and labor unions representing groups of employees -occupational _________ and _________ act: requires that employers provide employees with workplace free from recognized hazards that causing or are likely cause death or serious physical hard
value
customer perception that the product quality is excellent for the price offered
Business Process Reengineering (internal) focus on end 2 end business process design -developing a new product -winning customer deal -delivering a customer order -addressing a customer problem
Business Process Reengineering (internal) focus on ______ 2 ______ business process design -developing a new ______ -winning customer ______ -delivering a customer order -addressing a customer ______
customer departmentalization example
CEO of company | group communication - group strategy - group security | group business steering - group human resources | residential customers | mobile - internet, TV, fixed network - accessories RC - small and medium sized enterprises | internet, landline, TV - mobile, digital solutions | S&M SE - enterprise customers | banking and industry - network and cloud, mobile business solutions, digital enterprise solutions EC - IT Network & infrastructure | technical strategy and enterprise architecture - operation - rollout and access - wholesale
reinforcement contingencies
Cause-and-effect relationships between the performance of behaviors and specific consequences
Customer Perception: §Market share §Customer acquisition and defection rates §Customer Perceived Value: §Customer ratings of satisfaction level and future purchasing intent (for company & its direct competitors) §Verbatim comments identifying key issues or suggestions in major business areas §Net Promoter Scores: •Customer ratings: promoters (9-10), passives (7-8), detractors (<6) •NPS = % promoters -% detractors
Customer Perception: §_______ share §_______ acquisition and defection rates §Customer _______ _______: -Customer ratings of satisfaction level and future purchasing intent (for company & its direct competitors) -Verbatim comments identifying key issues or suggestions in major business areas §Net Promoter Scores: •Customer ratings: _______ (9-10), _______ (7-8), _______ (<6) •_______ = % promoters -% detractors
organizational authority
Determined by the chain of command, line versus staff authority, delegation, and the degree of centralization in a company. -right and responsibility to make decisions in order to achieve objectives
Functional Departmentalization - graphic
Example: insurance company sales - info systems accounting-Human Resources life insurance-auto insurance home insur - health insur. advertising agency sales - information systems accounting - HR art department - print adv. creative depart. - internet adv.
balanced scorecard -financial perspective (budgets, cash flow, economic value added) -customers perspective (customer defections) -internal operations perspective (total quality management) -innovation and learning perspective (total quality management)
-For effective results delivery, all key organizational areas need to be controlled, not just the financials -measurement of organizational performance of a broad dashboard in four general quadrants/equally important areas (no suboptimization): -_______ perspective (budgets, cash flow, economic value added; income statements, balance sheets, cash flow statement, EVA, dividend payout, financial ratios) -_________ perspective (customer defections, market share ) -_________ _________ perspective (total quality management) -_________ and _________ perspective (total quality management)
waste prevention and reduction 1. good housekeeping: performing regularly scheduled preventive maintenance for offices, plants and equipment 2. material/product distribution: replacing toxic or hazardous materials with less harmful materials 3. process modification: changing steps or procedures to eliminate or reduce waste
-first level of sustainability goal of top level -prevent waste and pollution before they occur or to reduce them when they do occur 3 strategies: 1. good _________: performing regularly scheduled preventive maintenance for offices, plants and equipment 2. _________/_________ distribution: replacing toxic or hazardous materials with less harmful materials 3. _________ modification: changing steps or procedures to eliminate or reduce waste
human resource management (HRM)
-the process of finding, developing, and keeping the right people to form a qualified workforce
HRM Process 1. attracting qualified employees (recruiting to selection to) 2. developing qualified employees (training to performance appraisal to) 3. keeping qualified employees (to compensation to employee separation)
HRM Process 1. ___________ qualified employees (recruiting to selection to) 2. ___________ qualified employees (training to performance appraisal to) 3. ___________ qualified employees (to compensation to employee separation)
Limitations of Management Control 1. ask and find out what each employees key needs are 2. address their lower order needs to get these off table: compensation, key benefits, job safety 3. create high performance environments through opportunities for them to satisfy higher order needs
Limitations of Management Control 1. ________ and find out what each employees key ________ are 2. address their ________ order needs to get these off table: ________, key ________, job ________ 3. create ________ performance environments through ________ for them to satisfy ________ order needs -autonomy, mastery, purpose, fun
Motivating with Equity Theory 1.Start by looking for and correcting major inequities 2.Reduce employees' inputs 3.Make sure decision-making processes are fair -distributive justice -procedural justice
Motivating with Equity Theory 1.Start by looking for and correcting major _________ 2.Reduce employees' _________ 3.Make sure decision-making processes are _________ -_________ justice -_________ justice
increase intrinsic motivation in jobs
The goal of the Job Characteristics Model is to
Basic Model of Work Motivation and Performance
Unsatisfied need lead to tension leads to energized to take action which leads to effort initiation direction and persistence which leads to performance which leads to satisfaction and goes back to an unsatisfied need
sexual harassment
a form of discrimination in which unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature occurs while performing one's job
underreward
a form of inequity in which you are getting fewer outcomes relative to inputs than your referent is getting -when a referents O/I is better than your O/I -when people perceive this they decrease or withhold their inputs
overreward
a form of inequity in which you are getting more outcomes relative to inputs than your referent -when your O/I ratio is better than your referents
simple matrix
a form of matrix departmentalization in which managers in different parts of the matrix negotiate conflicts and resources
complex matrix
a form of matrix departmentalization in which managers in different parts of the matrix report to matrix managers, who help them sort out conflicts and problems
quid pro quo sexual harassment
a form of sexual harassment in which employment outcomes, such as hiring, promotion, or simply keeping one's job, depend on whether an individual submits to sexual harassment
hostile work environment
a form of sexual harassment in which unwelcome and demeaning sexually related behavior creates an intimidating and offensive work environment
Job Specialization
a job composed of a small part of a larger task or process -have few highly repetitive tasks -benefits include simplicity, cost efficiency, output consistency -downfalls include leads to employee boredom, low job satisfaction and high turnover -how to improve employee motivation regarding this: job rotation job enlargement job enrichment
wrongful discharge
a legal doctrine that requires employers to have a job-related reason to terminate employees
unity of command
a management principle that workers should report to just one boss
feedback control
a mechanism for gathering information about performance deficiencies after they occur
concurrent control
a mechanism for gathering information about performance deficiencies as they occur, thereby eliminating or shortening the delay between performance and feedback
feedforward control
a mechanism for monitoring performance inputs rather than outputs to prevent or minimize performance deficiencies before they occur
intrinsic rewards
a natural reward associated with performing a task or activity for its own sake
360-degree feedback
a performance appraisal process in which feedback is obtained from the boss, subordinates, peers and coworkers, and the employees themselves
customer defections
a performance assessment in which companies identify which customers are leaving and measure the rate at which they are leaving
job evaluation
a process that determines the worth of each job in a company by evaluating the market value of the knowledge, skills, and requirements needed to perform it
control
a regulatory process of establishing standards to achieve organizational goals, comparing actual performance against the standards, and taking corrective action when necessary; 1. establish organizational goals 2. establish standards 3. identify companies to benchmark those standards 4. compare actual performance against standards 5. take corrective action when necessary
extrinsic rewards
a reward that is tangible, visible to others, and given to employees contingent/based on the performance of specific tasks or behaviors
four-fifths (or 80%) rule
a rule of thumb used by the courts and the EEOC to determine whether there is evidence of adverse impact; a violation of this rule occurs when the impact ratio (calculated by dividing the decision ratio for a protected group by the decision ratio for a nonprotected group) is less than this
intermittent reinforcement effect two of these are based on time : -interval reinforcement schedules two based on behaviors: -ratio schedules
a schedule in which consequences are delivered after a specified or average time has elapsed or after a specified or average number of behaviors has occurred two of these are based on time : -__________ __________ schedules two based on behaviors: -________ schedules
continuous reinforcement schedule
a schedule that requires a consequence to be administered following every instance of a behavior
interview
a selection tool in which company representatives ask job applicants job-related questions to determine whether they are qualified for the job
assessment centers
a series of managerial simulations, graded by trained observers, that are used to determine applicants' capability for managerial work
goal
a target, objective, or result that someone tries to accomplish
equity theory different ways to restore this: -sometimes increase outcomes to restore -rationalize or distort inputs or outcomes -changing the referent
a theory that states that people will be motivated when they perceive that they are being treated fairly -people are motivated if they believe that they are treated fairly at work -measured by perception under/over rewards v. contributions from peer comparisons different ways to restore this: -sometimes _________ outcomes to restore -rationalize or distort _________ or _________ -changing the _________
cash flow analysis
a type of analysis that predicts how changes in a business will affect its ability to take in more cash than it pays out
job description
a written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job
job specifications
a written summary of the minimum qualifications required of workers to do a particular job
People, Innovation & Learning §Employee satisfaction: survey scores and verbatims across all areas (Compensation, benefits, company management credibility, strategy & objectives clarity, support processes...) §Employee acquisition and attrition rates §Learning: general and technical courses completion, functional rotations ... §Innovation: new product and process launches, revenue from new products, patents awarded...
People, Innovation & Learning: §Employee _________: survey scores and verbatims across all areas (Compensation, benefits, company management credibility, strategy & objectives clarity, support processes...) §Employee _________ and _________ rates §_________: general and technical courses completion, functional rotations §_________: new product and process launches, revenue from new products, patents awarded...
Quality (operational excellence): §Internal and external process operations §Process efficiency/Unit cost structure: •Variable: employee headcount/expenses per unit of output; cost of products/services (COGS) •Fixed: General & Administrative costs §Time: new product development cycle, order fulfillment cycle, problem resolution time... §Conformance to expectations: internal & external defects §Sustainability:Waste disposal -> treatment -> recycle & reuse -> reduction & prevention
Quality (operational excellence): §_______ and _______ process operations §Process _______/_______ _______ structure: •_______: employee headcount/expenses per unit of output; cost of products/services (COGS) •_______: General & Administrative costs §_______: new product development cycle, order fulfillment cycle, problem resolution time... §conformance to _______: internal & external defects §_______:Waste disposal -> treatment -> recycle & reuse -> reduction & prevention
balance sheets
accounting statements that provide a snapshot of a company's financial position at a particular time
income statements
accounting statements, also called "profit and loss statements," that show what has happened to an organization's income, expenses, and net profit over a period of time
accurate selection procedures are valid, are legally defendable and improve organizational performance
accurate selection procedures are ________, are ________ defendable and improve ________ performance
alignment on common external objectives -(customers, financials), instead of local, potentially conflicting internal objectives
alignment on common _________ objectives -(customers, financials), instead of local, potentially conflicting _________ objectives
training and developement -growing knowledge and skillset, coaching by manager, mentoring by experienced peer, on the job training by team experts, computer based vs classroom training, lectures, videos, case studies, and simulation
developing the job-specific skills, experience, and knowledge employees need to perform their jobs or improve their performance -_________ knowledge and skillset, coaching by _________, mentoring by experienced _________, on the job training by team _________, _________ based vs _________ training, lectures, videos, _________ studies, and simulation
phased retirement
employees transition to retirement by working reduced hours over a period of time before completely retiring
outplacement services
employment-counseling services offered to employees who are losing their jobs because of downsizing
Biographical data (biodata)
extensive surveys that ask applicants questions about their personal backgrounds and life experiences
empowerment
feeling of intrinsic motivation in which workers perceive their work to have impact and meaning and perceive themselves to be competent and capable of self-determination
1. Outsourcing and 2. partnerships/strategic alliances (external) benefits: -pros: better capital utilization, cost reduction, and variabilization, efficiency improvements, access to innovation -risks: dependence on other company performance, loss of corporate competency
focus on corporate resources and investments on: -core competencies -key competitive differentiators -sources of strategic advantage let expert external companies do the rest -____________ (1.): tactical, transactional sourcing of specific functions -____________ (2.): long-term relationships with mutual strategic value benefits: -pros: ________ capital utilization, ________ reduction, and ________, ________ improvements, ________ to innovation -risks: ________ on other company performance, ________ of corporate competency
customer departmentalization -drives good customer centricity, but work functional synergies -advantage: (primary) focuses organization on customer rather than products -disadvantage: (primary) leads to duplicate resources
focuses its divisions on the different kinds of customers a company has -organizing work and workers into separate units responsible for particular kinds of customers -units are customer segments (large enterprises, small enterprises, consumers) -drives good customer __________, but work functional ___________ -advantage: (primary) focuses organization on _________ rather than _________ -disadvantage: (primary) leads to _________ resources
-skill variety -task identity -task significance -autonomy -feedback
for jobs to be intrinsically motivating jobs must be strong on 5 core job characteristic skills -skill __________ -task __________ -task __________ -__________ -__________
if jobs aren't internally motivating they can be redesigned by combing tasks, forming natural work units, establishing client relationships, using vertical loading, and opening feedback channels
if jobs aren't _________ motivating they can be redesigned by combing _________, forming natural work _________, establishing client _________, using _________ loading, and opening _________ channels
outcome/input (O/I) ratio
in equity theory, an employee's perception of how the rewards received from an organization (outputs) compare with the employee's contributions to that organization (inputs) and compare theirs with a referent
referents
in equity theory, others with whom people compare themselves to determine if they have been treated fairly
inputs
in equity theory, the contributions employees make to the organization
outcomes
in equity theory, the rewards employees receive for their contributions to the organization
job enlargement
increasing the number of different tasks that a worker performs within one particular jobs -task addition
job enrichment
increasing the number of tasks in a particular job and giving workers the authority and control to make meaningful decisions about their work more authority
purpose
industry recognition, social valve, innovation
performance feedback -insights (for current challenges) -consider (changes to make) -continue (actions to keep doing)
information about the quality or quantity of past performance that indicates whether progress is being made toward the accomplishment of a goal -_________ (for current challenges) -_________ (changes to make) -_________ (actions to keep doing)
disparate treatment
intentional discrimination that occurs when people are purposely not given the same hiring, promotion, or membership opportunities because of their race, color, sex, age, ethnic group, national origin, or religious beliefs intentional discrimination
structured interview
interviews in which all applicants are asked the same set of standardized questions, usually including situational, behavioral, background, and job-knowledge questions
unstructured interviews
interviews in which interviewers are free to ask the applicants anything they want
internal recruiting
involves finding qualified job applicants from inside the company the process of developing a pool of qualified job applicants from people who already work in the company
external recruiting
involves finding qualified job applicants from outside the company -the process of developing a pool of qualified job applicants from outside the company
keys to successful performance appraisals are accurately measuring job performance and effectively sharing performance feedback with employees. -organizations should develop good performance appraisal scales; train raters how to accurately evaluate performance and impress upon managers the value of providing feedback in a clear, consistent, and fair manner, as well as setting goals and monitoring progress toward those goals
keys to successful performance appraisals are accurately measuring job ________ and effectively sharing performance ________ with employees. -organizations should develop good performance appraisal ___________; train raters how to accurately evaluate ___________ and impress upon managers the value of providing ___________ in a clear, consistent, and fair manner, as well as setting ___________ and monitoring ___________ toward those goals
management implications of equity theory -identify and correct major inequities -clearly communicate objectives and rewards decision-making process -correct wrong perceptions
management implications of equity theory -identify and correct major _________ -clearly communicate _________ and _________ decision-making process -correct wrong _________
managers have the line authority to command employees below them in the chain of command but have only staff or advisory, authority over employees not below them int he chain of command -delegate authority by transferring to subordinates, the authority and responsibility needed to do a task -in exchange, subordinates become accountable for task completion
managers have the line authority to command employees _________ them in the chain of command but have only _________ or _________, authority over employees not _________ them in the chain of command -delegate _________ by transferring to _________, the _________ and _________ needed to do a _________ -in exchange, _________ become accountable for _________ completion
managers should check references and conduct background checks even though previous employers are often reluctant to provide such information for fear of being sued for defamation. without the information other employers are at a risk for negligent hiring lawsuits. selection tests generally do the best job of predicting applicants future job performance. 3 types are unstructured, structured, and semistructured
managers should check ___________ and conduct ___________ checks even though previous employers are often reluctant to provide such information for fear of being sued for ___________. without the information other employers are at a risk for ___________ hiring lawsuits. ___________ tests generally do the best job of predicting applicants future job performance. 3 types are ___________, ___________, and ___________
geographic departmentalization example
map with different colors marking different areas
empowering workers
means taking decision making authority and responsibility from managers and giving it to workers -they develop feelings of competence and self determination and believe that their work has meaning impact -permanently passing decision making authority and responsibility from managers to workers by giving them the info and resources they need to make and carry out good decisions
objective performance measures
measures of job performance that are easily and directly counted or quantified
subjective performance measures
measures of job performance that require someone to judge or assess a worker's performance
centralized companies
most authority to make decisions lies with managers in the upper levels of the company
motivating with the basics 1. start by asking people what their needs are 2. satisfy lower order needs first 3. managers should expect peoples needs to change 4. as needs change and lower order needs are satisfied, create opportunities for employees to satisfy higher order needs
motivating with the basics 1. start by asking people what their ________ are 2. satisfy ________ order needs first 3. managers should expect peoples ________ to change 4. as needs change and lower order needs are ________, create ________ for employees to satisfy ________ order needs
motivating with the integrated model motivating with the basics: -ask people what their needs are -satisfy lower order needs first -expect peoples needs to change -as needs change and lower order needs are satisfied, satisfy higher order needs by looking for ways to allow employees to experience intrinsic rewards equity theory: -look for and correct major inequities -reduce employees input -make sure decision making processes are fair Expectancy theory: -systematically gather information to find out what employees want from their jobs -take specific steps to link rewards to individual performance in a way that is clear and understandable to employees -empower employees to make decisions if management really wants them to believe that their hard work and efforts will lead to good performance reinforcement theory: -identify, measure, analyze, intervene, and evaluate critical performance-related behaviors -dont reinforce the wrong behaviors -correctly administer punishment at the appropriate time -choose the simplest and most effective schedules of reinforcement Goal-setting theory: 1. assign specific, challenging goals 2. make sure workers truly accept organizational goals 3. provide frequent, specific, performance-related feedback
motivating with the integrated model motivating with the basics: -ask people what their ________ are -satisfy ________ order needs first -expect peoples needs to ________ -as needs change and ________ order needs are satisfied, satisfy ________ order needs by looking for ways to allow employees to experience ________ rewards equity theory: -look for and correct major ________ -reduce employees ________ -make sure decision making processes are ________ Expectancy theory: -systematically gather ________ to find out what employees want from their jobs -take specific steps to link ________ to individual ________ in a way that is clear and understandable to employees -________ employees to make decisions if management really wants them to believe that their hard work and efforts will lead to good performance reinforcement theory: -identify, measure, analyze, intervene, and evaluate critical performance-related ________ -dont ________ the wrong behaviors -correctly administer ________ at the appropriate time -choose the simplest and most effective schedules of ________ Goal-setting theory: 1. assign ________, ________ goals 2. make sure workers truly accept organizational ________ 3. provide frequent, specific, performance-related ________
internal motivation -perceive work is meaningful -feel responsibility for outcomes -know their performance and results -skill variety, task identity, task significance, autonomy, feedback
motivation that comes from the job itself rather than from outside rewards employees this if: -perceive work is _________ -feel _________ for outcomes -know their _________b and _________ decision characteristics of these types of jobs include (5): -skill _________, task _________, task _________, _________, _________
decentralized companies
much of the authority is delegated to the workers closest to problems, who can then make the decisions necessary for solving the problems themselves.
McClellands affiliation: to be liked and accepted achievement: accomplish challenging goals power: influence others
need for __________: to be liked and accepted need for __________: accomplish challenging goals need for __________: influence others
span of control
number of reports -larger needs to flatter organizational structure with less management overheard and more employee empowerment -smaller leads to more active engagement of managers in their employees task execution
organizations are using modular and virtual organizations to change interorganizational processes
organizations are using ___________ and ___________ organizations to change interorganizational processes
Product Departmentalization -advantages: allows managers and workers to specialize in one area of expertise, easier for top managers (broader expertise and experience), makes it easier for top managers to assess work unit performance -disadvantage: duplication (primary), challenge of coordinating across different departments
organized according to the different products or services a company sells -organizing work and workers into separate units responsible for producing particular products or services -units are product or service lines (product line A, installation services, maintenance) -advantages: allows managers and workers to _________ in one area of _________, easier for _________ managers (broader expertise and experience), makes it easier for top managers to _________ work unit _________ -disadvantage: _________ (primary), challenge of _________ across different departments
modular organizations
outsource all noncore activities to other businesses, they are less expensive to run than traditional companies -however require extremely close relationships with suppliers, may result in a loss of control, and could create new competitors if the wrong business activities are outsourced
virtual organizations
participate in a network in which they share skills, costs, capabilities, markets, and customers to collectively solve customer problems or provide specific products or services -reduce costs, respond quickly, and, if they can successfully coordinate their efforts, produce outstanding products and services -org part of network which many companies
performance --> effort: initiation, direction, persistence -motivation = valence x expectancy x instrumentality job performance = motivation x ability x situational constraints
performance --> effort: _________, _________, _________ -motivation = _________ x _________ x _________ job performance = _________ x _________ x _________ constraints
suboptimization
performance improvement in one part of an organization but only at the expense of decreased performance in another part
job rotation
periodically moving workers from one specialized job to another to give them more variety and the opportunity to use different skills -specialized variety
background checks
procedures used to verify the truthfulness and accuracy of information that applicants provide about themselves and to uncover negative, job-related background information not provided by applicants
recruiting -needs identification through planning -job description w/ job specification -internal w/in company external outside company
process/developing of finding/pooling qualified job applicants first step: conduct job analysis -process of developing a pool of qualified job applicants -needs identification through __________ -job __________ w/ job __________ -__________ w/in company __________ outside company
expectancy theory -motivation = valence x expectancy x instrumentality -management implications: find out what people want from jobs, explicitly link appropriate rewards to achievements, empower employees to make decisions -valence and instrumentality combine to affect employees willingness to put forth effort -expectancy transforms intended effort
the theory that people will be motivated to the extent to which they believe that their efforts will lead to good performance, that good performance will be rewarded, and that they will be offered attractive rewards -people are motivated by the belief their efforts will lead to good performance, which will then be attractively rewarded -____________ = valence x expectancy x instrumentality management implications: find out what people ______ from jobs, explicitly link appropriate ______ to achievements, ______ employees to make decisions -________ and ________ combine to affect employees willingness to put forth effort -________ transforms intended effort
Behavior Observation Scale (BOS)
rating scales that indicate the frequency with which workers perform specific behaviors that are representative of the job dimensions critical to successful job performance ex: almost never: 1 2 3 4 5 : almost always
extinction
reinforcement in which a positive consequence is no longer allowed to follow a previously reinforced behavior, thus weakening the behavior
positive reinforcement
reinforcement that strengthens behavior by following behaviors with desirable consequences
negative reinforcement
reinforcement that strengthens behavior by withholding an unpleasant consequence when employees perform a specific behavior; also known as avoidance learning
bureaucratic control -Pros: clarity and consistency on mandates and expectations, fostering efficiency and fairness -Cons: constrained agility, resistance to change, slow responsiveness to customers/competitors
the use of hierarchical authority to influence employee behavior by rewarding or punishing employees for compliance or noncompliance with organizational policies, rules, and procedures -Focused on organizational policies, rules and procedures defined by regulators and top management -Pros: _______ and _______ on mandates and expectations, fostering _______ and _______ -Cons: constrained _______, resistance to _______, slow _______n to customers/ competitors
objective control
the use of observable measures of worker behavior or outputs to assess performance and influence behavior -Based on behaviors or outputs expected by management
organizational structure
the vertical and horizontal configuration of departments, units, authority, and jobs within a company/organization, defining how to execute its business/organization processes
employee separation
the voluntary or involuntary loss of an employee
there is no single best departmental structure. each has advantages and disadvantages
there is no _______ best departmental structure. each has _______ and _______
waste treatment
third level of sustainability -companies use biological, chemical, or other processes to turn potentially harmful waste into harmless compounds or useful by products
topics to avoid during an interview: children age disabilities physical characteristics name citizenships lawsuits arrest records smoking AIDS/HIV religion genetic information
topics to avoid during an interview: ___________ ______ ___________ ___________ characteristics ___________ ___________ ___________ ___________ records ___________ ___________/___________ ___________ ___________ information
rater training
training performance appraisal raters in how to avoid rating errors and increase rating accuracy
disparate treatment adverse impact
two important criteria regarding human resource management that are used to decide whether companies have wrongly discriminated against someone
-quid pro quo sexual harassment -hostile work environment
two kinds of sexual harassment
adverse impact
unintentional discrimination that occurs when members of a particular race, sex, or ethnic group are unintentionally harmed or disadvantaged because they are hired, promoted, or trained (or any other employment decision) at substantially lower rates than others
job analysis
used to write a job description of basic tasks, duties, and responsibilities and to write job specifications indicating the knowledge, skills, and abilities needed to perform the job -a purposeful, systemic process for collecting information on the important work related aspects of a job
chain of command
vertically connects every job in the company to higher levels of management and makes clear who reports to whom -the vertical line of authority that clarifies who reports to whom throughout the organization -
reciprocal interdependence
work completed by different jobs or groups working together in a back-and-forth manner
pooled interdependence
work completed by having each job or department independently contribute to the whole
sequential interdependence
work completed in succession, with one group's or job's outputs becoming the inputs for the next group or job
knowledge of results responsibility for work outcomes meaningful work
workers must experience 3 critical psychological states knowledge of _________ _________ for work _________ _________ work
ØStructural tension between Control and Change Ø ØControl Methods will vary based on corporate culture and business priorities ØAll need to be reinforced by the right incentive structures ØMix of methods often desirable to achieve business results and maximize employee motivation §More bureaucratic when cost of non compliance is high §Less bureaucratic when innovation and individual or team flexibility are important
ØStructural tension between Control and Change Ø__________ Methods will vary based on corporate culture and business priorities ØAll need to be reinforced by the right __________ structures ØMix of methods often __________ to achieve business results and maximize employee motivation §More bureaucratic when cost of non compliance is __________ §Less bureaucratic when innovation and individual or team __________ are important
schedule of reinforcement
rules regarding reinforcement that specify which behaviors will be reinforced, which consequences will follow those behaviors, and the schedule by which those consequences will be delivered
recycle and reuse -design for assembly
second level of sustainability -wastes are reduced by reusing materials as long as possible or by collecting material as long as possible or by collecting materials for on or off site recycling -growing trend (__________ ________) where products are designed from start for easy dissassembly, recycling, and reuse after they are no longer usable
autonomy**
self direction, empowerment, flexibility
simplification of maslows model 2 basic kinds of needs = -lower order needs first (safety, physiological existence) -higher order needs (next) equals relationships (belongingness, relatedness), challenges and accomplishments ( esteem, self actualization, growth, achievement), influence (power) -studies show that higher order needs will not motivate people as long as lower order needs remain unsatisfied
simplification of maslows model 2 basic kinds of needs = -_________ order needs first (_________, _________ existence) -_________ order needs (next) equals _________ (belongingness, relatedness), _________ and _________ ( esteem, self actualization, growth, achievement), _________ (power) -studies show that _________ order needs will not motivate people as long as _________ order needs remain unsatisfied
standardization
solving problems by consistently applying the same rules, procedures, and processes
employment references
sources such as previous employers or co-workers who can provide job-related information about job candidates
specialized jobs aren't motivating or particularly satisfying for employees companies have used: -job rotation -job enlargement -job enrichment job characteristics model to make specialized jobs more interesting and motivating
specialized jobs aren't _________ or particularly _________ for employees companies have used: -job _________ -job _________ -job _________ job _________ model to make _________ jobs more _________ and _________
steps to motivate employees with expectancy theory 1. systematically gather information to find out what employees want from their jobs 2. take specific steps to link rewards to individual performance in a way that is clear and understandable to employees 3. should empower employees to make decisions if management really wants them to believe that their hard work and effort will lead to good performance
steps to motivate employees with expectancy theory 1. systematically gather _________ to find out what employees _______ from their jobs 2. take specific steps to link _________ to individual _________ in a way that is clear and understandable to employees 3. should _________ employees to make _________ if management really wants them to believe that their hard work and effort will lead to good _________
departmentalization
subdividing work and workers into separate organizational units responsible for completing particular tasks
Specific ability tests (aptitude tests)
tests that measure the extent to which an applicant possesses the particular kind of ability needed to do a job well
cognitive ability tests
tests that measure the extent to which applicants have abilities in perceptual speed, verbal comprehension, numerical aptitude, general reasoning, and spatial aptitude
work sample tests
tests that require applicants to perform tasks that are actually done on the job
Economic Value Added (EVA)
the amount by which company profits (revenues, minus expenses, minus taxes) exceed the cost of capital in a given year (most common is interest paid on long term bank loans, and interest paid to bondholders)
feedback
the amount of information the job provides to workers about their work performance -performance measures
delegation of authority authority (for making decisions) responsibility (for executing tasks) ultimate accountability (for results)
the assignment of direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible -defines who has: __________ (for making decisions) __________ (for executing tasks) __________ __________ (for results)
valence
the attractiveness or desirability of a reward or outcome
intraorganizational process
the collection of activities that take place within an organization to transform inputs into outputs that customers value
organizational process
the collection of activities that transform inputs into outputs that customers value
regulation costs
the costs associated with implementing or maintaining control
autonomy
the degree to which a job gives workers the discretion, freedom, and independence, to decide how and when to accomplish the job -flexibility on how to accomplish -self direction, empowerment, flexibility
task significance
the degree to which a job is perceived to have a substantial impact on others inside or outside the organization -substantial impact
task identity
the degree to which a job, from beginning to end, requires the completion of a whole and identifiable piece of work -indentifiable contribution
goal difficulty
the extent to which a goal is hard or challenging to accomplish
task interdependence
the extent to which collective action is required to complete an entire piece of work
goal specificity
the extent to which goals are detailed, exact, and unambiguous
cybernetic feasibility
the extent to which it is possible to implement each step in the control process
goal acceptance
the extent to which people consciously understand and agree to goals
decentralization of authority -benefits: better speed of decision making better response agility richer employee development and higher employee motivation
the location of a significant amount of authority in the lower levels of the organization -significantly with lower-level management -benefits: better _________ of _________ making better _________ agility _________ employee development and _________ employee motivation
centralization of authority -benefits of centralization: tighter control, consistency in decision making
the location of most authority at the upper levels of the organization -mostly with top management -benefits of ____________: ____________ control, ____________ in ____________ making
skill variety
the number of different activities performed in a job form task diversity
job design
the number, kind, and variety of tasks that individual workers perform in doing their jobs
distributive justice
the perceived degree to which outcomes and rewards are fairly distributed or allocated
procedural justice
the perceived fairness of the process used to make reward allocation decisions
expectancy
the perceived relationship between effort and performance
instrumentality
the perceived relationship between performance and rewards
needs (what motivates people - needs theory)
the physical or psychological requirements that must be met to ensure survival and well-being -motivation driven by unmet ______ and associated rewards
downsizing
the planned elimination of jobs in a company -companies use to reduce the number of employees in the organization and lower costs
performance appraisal
the process of assessing how well employees are doing their jobs
reinforcement
the process of changing behavior by changing the consequences that follow behavior
validation
the process of determining how well a selection test or procedure predicts future job performance; the better or more accurate the prediction of future job performance, the more valid a test is said to be
human resources management
the process of finding, developing, and keeping the right people to form a qualified workforce subject to numerous major federal employment laws and subject to review by several federal agencies -these laws indicate that sex, age, religion, color, national origin, race, disability, and genetic history may not be considered in employment decisions unless these factors reasonably qualify as BFOQs
selection -applications and resumés -interviews -structured and unstructured -employee references -background checks -selection tests: specific aptitude tests, general cognitive ability tests, personality tests, biographical data (biodata), assessment centers (managers)
the process of gathering information about job applicants to decide who should be offered a job -deciding who should be offered the job -applications and resumés -interviews -structured and unstructured -employee references -background checks -selection tests: specific aptitude tests, general cognitive ability tests, personality tests, biographical data (biodata), assessment centers (managers)
needs assessment
the process of identifying and prioritizing the learning needs of employees
benchmarking
the process of identifying outstanding practices, processes, and standards in other companies and adapting them to your company -after setting standards identify companies against which to do this with their standards
cybernetic
the process of steering or keeping on course -comes from kubernetes
behavioral control •Pros: reinforces expected behaviors •Cons: better flexibility can lead to key standard/output deviations
the regulation of the behaviors and actions that workers perform on the job -type of objective control •Pros: reinforces expected __________ •Cons: better __________ can lead to key standard/output deviations
normative control -Pros: reinforces strong company cultures; high flexibility on behaviors and processes -Cons: ineffective if recruiting not focused on cultural fit; flexibility can lead to key standard/objectives deviations
the regulation of workers' behavior and decisions through widely shared organizational values and beliefs -Focused on company's cultural norms: shared values and beliefs -Pros: reinforces strong company __________; high __________ on behaviors and processes -Cons: __________ if recruiting not focused on cultural fit; flexibility can lead to key standard/objectives __________
concertive control -Pros: workgroup autonomy to define their own values, beliefs and processes; group motivation -Cons: inconsistency in cultural norms and processes across the company; inefficiencies in transversal process execution; team conflicts
the regulation of workers' behavior and decisions through work group values and beliefs -Focused on specific work groups' norms -Pros: workgroup __________ to define their own values, beliefs and processes; __________ motivation -Cons: __________ in cultural norms and processes across the company; inefficiencies in transversal process __________; team __________
output (SMART objectives) control •Pros: high flexibility on how to achieve objectives; employee motivation •Cons: focus on results deemphasizes expected behaviors and processes
the regulation of workers' results or outputs through rewards and incentives -type of objective control •Pros: high __________ on how to achieve objectives; employee __________ •Cons: focus on results deemphasizes expected __________ and __________
staff authority
the right to advise, but not command, others who are not subordinates in the chain of command -secondary reporting relationship, in matrix organizations or for advising functions
line authority
the right to command immediate subordinates in the chain of command -primary boss/subordinate relationship
authority
the right to give commands, take action, and make decisions to achieve organizational objectives -for making decisions
motivation -critical to both job satisfaction and job performance -performance = motivation x ability x situational restraint
the set of forces that initiates, directs, energize, stustain and makes people persist in their efforts to accomplish a goal - set of forces that energize, direct, and sustain a persons effort to accomplish a goal -psychological processes that arouse and direct goal-oriented behavior -degree to which someone works hard to do the job well -initiation, direction, and persistence are at the heart of this -critical to both job _________ and job _________ -performance = _________ x _________ x _________ restraint
control loss
the situation in which behavior and work procedures do not conform to standards
reinforcement theory management implications: -continuously monitor employee behavior -consistently reward good behaviors (positive motivation) -consistently withdrawal rewards if, or punish poor behavior (negative motivation)
the theory that behavior is a function of its consequences, that behaviors followed by positive consequences will occur more frequently, and that behaviors followed by negative consequences, or not followed by positive consequences, will occur less frequently -behaviors at work are driven by their consequences -positive consequences reinforce specific behavior while negative consequences deter it management implications: -continuously monitor employee __________ -consistently __________ good behaviors (__________ motivation) -consistently __________ rewards if, or punish __________ behavior (__________ motivation)
Goal Setting Theory -management implications: assign SMART goals; that are challenging but accepted by or co-set with employees; provide regular, specific performance feedback and coaching advice to help with successful achievement
the theory that people will be motivated to the extent to which they accept specific, challenging goals/objectives and receive feedback that indicates their progress toward goal achievement -people motivated by clear, challenging but achievable goals and candid feedback on their progress towards achievement - in oder to motivate employees managers must make sure workers accept organizational objectives -management implications: assign _________ goals that are _________ but accepted by or co-set with _________; provide _________, _________ performance _________ and _________ advice to help with successful _________
subjective performance appraisal scales 1. graphic rating scale 2. behavioral observation scale
1. very poor - poor - average - good - very good
waste disposal
4th and Lowest level of sustainability -cannot be prevented, reduced, recycled, reused, or treated should be safely disposed of in processing plants
1. job performance 2.ability 3. situational constraints
1. how well someone performs the requirements of the job 2. the degree to which workers possess the skill, knowledge, and talent needed to do a job well 3. factors beyond the control of individual employees such as tools, policies, resources, etc. that have an affect on job performance
basic control process -purpose: Some controls are mandated by government or industry regulators (SEC, EPA, FDA, FAA, FCC...); Broader business controls are necessary to assess execution of business plan and to deliver on strategy and business objectives -is not one-time effort, but instead requires continuous attention and actions by management -Control process is successful if both: •Behavior and work procedures conform to standards •Key business objectives are achieved -Control methods identify deviations: •After they happen (feedback control) •When they happen (concurrent control) •Before they happen (feedforward control)
...basic control process -purpose: Some controls are mandated by _________ or _________ regulators (SEC, EPA, FDA, FAA, FCC...); Broader business controls are necessary to assess _________ of business plan and to _________ on strategy and business objectives -is not _________-time effort, but instead requires continuous attention and actions by management -Control process is successful if both: •Behavior and work procedures conform to _________ •Key business objectives are _________ -Control methods identify deviations: •_________ they happen (feedback control) •_________ they happen (concurrent control) •_________ they happen (feedforward control)
1. initiation of effort 2. direction of effort 3. persistence of effort
1. concerned with the choices that people make about how much effort to put forth in their jobs 2. concerned with the choices that people make in deciding where to put forth effort in their job 3. concerned with the choices that people make about how long they will put forth effort in their jobs before reducing or eliminating those efforts
1. physiological 2. safety 3. belongingness/social 4. esteem ego 5. self-actualization
1. food, water 2. physical, economic 3. friendship, love, social interaction 4. achievement, recognition 5. realizing one's full potential
Challenges of the Control Process -Effective control processes rely on accuracy of key performance data •However data collection, interpretation and quality are often corporate Achilles heel •Importance of modern IT systems architecture and business process measurements •Key levers: Big Data, Artificial/Augmented Intelligence, Machine Learning •Enable shift from reactive feedback control to predictive feedforward control -Drawbacks of management controls: -Control processes can be costly, slow down execution, and dilute strategic focus -Need to select the most appropriate control methods and focus on the most important regulatory and business controls -Also need to keep governance structure light and effective: optimize the number of management reviews, internal reporting and audits
Challenges of the Control Process -Effective control processes rely on __________ of key performance data •However data collection, interpretation and quality are often __________ achilles heel •Importance of modern IT systems architecture and business process __________ •Key __________: Big Data, Artificial/Augmented Intelligence, Machine Learning •Enable shift from reactive feedback control to predictive __________ control -Drawbacks of management controls: -__________ processes can be costly, slow down execution, and dilute strategic focus -Need to select the most appropriate __________ methods and focus on the most important regulatory and business __________ -Also need to keep governance __________ light and effective: optimize the number of management reviews, internal reporting and audits
Key Employment Discrimination Laws: Fair labor standards act 1938: -equal pay Act, Civil Rights Act, Age Discrimination in Employment Act, Pregnancy Discrimination Act, Americans with disabilities act, genetic information non discrimination act
Key Employment Discrimination Laws: -______ ______ Act 1963: prohibits unequal pay for males and females doing substantially similar work ______ _____ Act 1964: prohibits employment discrimination on basis of race, color, religion, gender, or national origin Age ______ in ______ Act 1967: prohibits discrimination in employment decisions against people age 40 and older ______ Discrimination Act 1978: prohibits discrimination of employement against pregnant women _________ with ______ act 1990: prohibits discrimination on basis of physical or mental disabilities ______ information ______ discrimination act 2008: prohibits discrimination on basis of genetic info
employment discrimination -enforced by Equal Employment Opportunity Commission (EEOC) -intentional (disparate treatment) -unintentional (adverse impact)
Title VII of the Civil Rights Act of 1964 laws passed by Congress, making illegal to discriminate on base of race, color, religion, sex, pregnancy, sexual orientation, national origin, age, disability, or genetic information -aplicable to most companies w/15+ people/employees -covers hiring, firing, promotion, harassment, training, wages, benefits -enforced by ___________________ -costly to employers if prosecuted and found guilty -intentional (__________ treatment) -unintentional (__________ impact)
1. impart information and knowledge 2. develop analytical and problem solving skills 3. practice, learn, or change job behaviors 4. impart information and knowledge; develop analytical and problem-solving skills; and practice, learn, or change job behaviors
Training methods: 1. impart ___________ and ___________ 2. ___________ analytical and problem solving ___________ 3. practice, learn, or change job ___________ 4. ___________ information and knowledge; ___________ analytical and problem-solving skills; and practice, learn, or change job ___________ 1.films and videos, lectures, planned readings 2. case studies, coaching and mentoring, group discussions, 3. on the job training, role playing, simulations and games, vestibule training 4. computer based learning
application forms and resumés are the most common selection devices
___________ forms and ___________ are the most common selection devices
standards
a basis of comparison for measuring the extent to which various kinds of organizational performance are satisfactory or unsatisfactory; enable goal achievement.
zero-based budgeting
a budgeting technique that requires managers to justify every expenditure every year
inter organizational process
a collection of activities that take place among companies to transform inputs into outputs that customers value
profit sharing
a compensation system in which a company pays a percentage of its profits to employees in addition to their regular compensation
piecework
a compensation system in which employees are paid a set rate for each item they produce
commision
a compensation system in which employees earn a percentage of each sale they make
Employee Stock Ownership Plan (ESOP)
a compensation system that awards employees shares of company stock in addition to their regular compensation
stock options
a compensation system that gives employees the right to purchase shares of stock at a set price, even if the value of the stock increases above that price
human resource information system (HRIS)
a computerized system for gathering, analyzing, storing, and disseminating information related to the HRM process
self-control (self-management) -Pros: vast individual autonomy and empowerment to deliver end results; strong employee motivation and accountability -Cons: high inconsistency in cultural norms and processes across the company
a control system in which managers and workers control their own behavior by setting their own goals, monitoring their own progress, and rewarding themselves for goal achievement -Focused on self-defined objectives and behaviors within general boundaries set by management -Pros: vast __________ autonomy and empowerment to deliver end results; strong __________ motivation and accountability -Cons: high __________ in cultural norms and processes across the company
Business Process Reengineering (internal) changes an organizations orientation from vertical to horizontal and changes its work processes by decreasing sequential and pooled interdependence and by increasing reciprocal interdependence -promises dramatic increases in productivity and customer satisfaction but it has been criticized as simply an excuse to cut costs and lay off workers -transformation of business process -mandated by top level management -addressing a burning platform -triggering structural operational changes -launch with guide wins, then scale in rapid iterations, deploying changes, training people and continually adjusting based on results -increases effectiveness and efficiency of organization, leading to major improvements in (better execution speed and response agility, cost and waste reduction, greater delivery predictability, higher customer satisfaction, defeats reduction and better overall quality)
def: fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance, such as cost, quality, service, and speed changes an organizations orientation from __________ to __________ and changes its work processes by __________ sequential and pooled interdependence and by __________ reciprocal interdependence -promises dramatic __________ in productivity and customer satisfaction but it has been criticized as simply an excuse to cut __________ and __________ workers -transformation of business __________ -mandated by __________ level management -addressing a burning __________ -triggering structural __________ changes -__________ with guide wins, then __________ in rapid iterations, deploying __________, training people and continually __________ based on results -increases __________ and __________ of organization, leading to major improvements in (better execution __________ and __________ agility, cost and waste __________, greater __________ predictability, higher customer __________, __________ reduction and better overall __________)
degree of centralization
defines where authority resides
functional, product, customer, geographic, and matrix
departmentalization approach to organization structure -5 different structures/basic models:
compensation structural pay decisions: -pay level (market) -pay variability (perf) -pay structure (parts) individual rewards: -salary -incentive/bonus group rewards: -profit sharing -stock (ESOP) -stock options
designing the financial and nonfinancial rewards that organizations give employees in exchange for their work 3 kinds of these decisions: -________ (market; whether to pay workers at a level that is below above or at current market wages) -________ (perf; decisions concern the extent to which employees pay varies with individual and organizational performance) -________ (parts; decisions are concerned with internal pay distributions, meaning the extent to which people in the company receive very different levels of pay) individual rewards: -________ -________/________ group rewards: -________ sharing -________ (ESOP) -stock ________
quality: determined by excellence, value, and conformance -excellence: managers must try to produce a product or service of unsurpassed performance and features -conformance: base decisions and actions on whether services and products measure up to the standard
determined by excellence, value, and conformance -___________: managers must try to produce a product or service of unsurpassed performance and features -___________: base decisions and actions on whether services and products measure up to the standard
fun
group or adhocracy cultures (people focus)
Maslow's Theory -psychological, safety, belongingness/social, esteem ego, self authorization
hierarchy of 5 needs pursued sequentially (where people are motivated by the lowest needs and continue to move up through the hierarchy), include:
matrix departmentalization -advantage: (primary) allows companies to manage efficient manner large complex tasks, pool of resources available to carry out large complex tasks -disadvantage: (primary) high level of coordination required to manage complexity in projects at various levels of completion
hybrid form that combines two or more forms of departmentalization, the most common veing the product and functional forms -a hybrid organizational structure in which two or more forms of departmentalization most often product and functional are used together -drives some benefits of the above but none complex to manage and operate info -advantage: (primary) allows companies to manage _________ manner large _________ tasks, pool of _________ available to carry out large complex tasks -disadvantage: (primary) high level of _________ required to manage _________ in projects at various levels of completion
employee turnover
loss of employees who voluntarily choose to leave the company -companies like to keep low to reduce costs associated with finding and developing new employees
dysfunctional turnover
loss of high-performing employees who voluntarily choose to leave a company
functional turnover
loss of poor-performing employees who voluntarily choose to leave a company -can be positive/good for organizations
Early retirement incentive programs (ERIPs)
programs that offer financial benefits to employees to encourage them to retire early -companies use to reduce the number of employees in the organization and lower costs
budgets
quantitative plans through which managers decide how to allocate available money to best accomplish company goals
