MAN 336 Exam 3

Why is organizational culture important to organizations and the people in them?

- The culture and strategy must align - Kotter and Haskett found that companies with "performance enhancing" culture outperformed those that were not - Cultures can also be a liability because they are over-socialized (can't see things differently), there are barriers to change, barriers to diversity

Why is an org culture likely to be an iceberg?

Because much of the culture is unseen; there's a difference between how the culture is described and what people actually do

Why are situational leadership and path-goal theories considered contingency theories?

Because they take into account which conditions where some leadership styles are more effective

Problems with Trait Theories

1) Assumes leaders are born not made 2) The situation may influence when certain traits are effective 3) Not very predictive of who will be an effective leader

How are cultures maintained?

1) Attraction, Selection Attrition (ASA 2) Socialization (Onboarding) 3) Leadership Influence 4) Rewards System

Six Emotional Leadership Styles

1) Coercive 2) Authoritative 3) Affiliative 4) Democratic 5) Pacesetting 6) Coaching

Seven Dimensions of Culture

1) Innovative 2) Aggressive 3) Detail-oriented 4) Outcome oriented 5) Stable 6) People oriented 7) Team oriented

What is Kurt Lewin's model of change? What happens in each stage of the model?

1) Unfreeze -- get conditions ready for the organization to change 2) Change 3) Refreeze -- make the change stick by adopting new practices/policies

Four skills of emotional intelligence

1) self-awareness 2) self-management 3) social awareness 4) relationship management

What is change management and why is it an important area of study? What are some common reasons that change efforts fail in organizations?

Change management: mindsets and methods that align and equip the workforce to think and work in new ways and enable companies to drive and sustain successful change All management is change management Why? Change is the only constant and 70% of planned change efforts do not achieve intended outcomes

What kind of situation is best suited for each six leadership styles?

Coercive -- works best in a crisis to turn something around Authoritative -- works best when a new direction is needed Affiliative -- works best to heal rifts in a team or to motivate others Democratic -- works best to build buy-in Pacesetting -- works best when results need to be quick Coaching -- works best to help an employee improve performance

What determines the strength of a culture?

Consensus and intensity (what people agree on what the culture is and the strength of feeling about the culture

Why is culture important?

Culture is important because it gives people a sense of identity and purpose

Four I's of Transformational Leadership

1. Idealized influence (gives personal attention) 2. Inspirational motivation (exciting the masses/sharing the vision) 3. Intellectual stimulation (thinking outside the box) 4. Individualized consideration (walking the walk and providing vision)

Three Levels of Organizational Culture

1. observable artifacts 2. espoused values 3. basic assumptions

Be able to distinguish the purpose of "differentiation" from "integration." How do you know what structure is right for a business?

Differentiation: dividing all the work into distinct tasks Integration: how all the divided work comes together Also determines the power and how information within the organization flows No best structure but the best structure is aligned to your company's strategy

Why is trust important to leadership?

It is foundational to building effective working relationships with people and you do this by being vulnerable, honest, and getting to know those who are following you

Be able to describe and distinguish Mechanistic from Organic structures.

Mechanistic: functional, division, and matrix Goal is command and control Organic: Simple, team-focused, and virtual Goal is adaptability Larger network of authority

Transactional Leadership

Motivates followers by setting goals and direction, not inspiration but just giving awards for the work they have done

What leadership styles hurt leadership climate?

Pacesetting and coercive style

What is the difference between Passive Resistance and Compliance?

Passive resistance vs compliance is that the passive resistance person doesn't care much about the change and the compliance person is indifferent

What is leadership?

People who influence others to get something done within an organization

What are the two basic types of change that organizations face? Which of the two is more difficult to execute and why?

Proactive: planned change/closing an opportunity gap Reactive: unplanned change/closing a performance gap Proactive is the hardest

Steps to Intentionally Shaping Culture

Step 1: Identify what needs to change Step 2: Executive planful change Create a sense of urgency Change leaders and other key players Role model Train Change the reward system Create new stories and symbols Measure success

What is a matrix structure? What kind of reporting relationships are common in such structures - and what is the chief problem with such reporting relationships?

Structures with dual or multiple accountabilities Having more than one boss is a problem (divisional and functional managers can conflict)

What is the main idea of the Nadler & Tushman Organization Design Model?

The idea is that the strategy has to be aligned with the 4 elements - Work, Culture, Structure, People Effective organization is one where all components are aligned together

What is organizational culture?

The shared social knowledge within an organization regarding the rules, norms, and values that shape the attitudes and behaviors of its employees

What should leaders base their leadership style on?

Their situation, not personality

Know all 8 steps of the Kotter change process. What is the objective of each stage? According to Kotter, what are some common change "traps" that organizations fall into?

UNFREEZE 1) Establish a sense of urgency 2) Build a powerful coalition 3) Get the vision right TRAP: Failure to establish a sense of urgency CHANGE 4) Communicate the vision 5) Empower people to act 6) Plan for and create short-term wins TRAP: Under communicating the change REFREEZE 8) Consolidate improvement 9) Institutionalize the change TRAP: Declaring victory too soon

When is organization design important to businesses? What are a few examples of organizational events for which organization design might be needed?

When change occurs within an organization is when org design is important OD can be a priority when someone is starting a new company, there is a strategic shift, merger or acquisition, and a rapid growth or decline

Dominant culture

a culture that expresses the core values that are shared by a majority of the organization's members

Charismatic Leadership Theory

a leadership theory that states that followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors -- person leads through a strong personality

Contingency theory

a leadership theory that states that in order to maximize work group performance, leaders must be matched to the situation that best fits their leadership style

Transformational Leadership Theory

inspires followers by gaining their respect and trust, intrinsic motivation

Subcultures

mini-cultures within an organization, typically defined by department designations and geographical separation

What is emotional intelligence?

the ability to manage ourselves and our relationships effectively

What is "force-field analysis" and what is it used to assess?

the process of determining which forces drive and which resist a proposed change Driving forces: problems or opportunities that motivate or compel change Restraining forces: barriers to change and forces impeding or compelling resistance to change If the driving force overwhelms the restraining force, then change is likely to happen

Counter-Culture

A culture with lifestyles and values opposed to those of the dominant culture.

Trait theory

A theory of personality that focuses on identifying, describing, and measuring individual differences in behavioral predispositions Not much predictive power because traits can't tell you whether or not a person will be a good leader

Explain the different reactions individuals may have to change (continuum of Active Resistance to Enthusiastic Support)

Active Resistance Passive Resistance Compliance Enthusiastic Support

Behavioral theory

Analyze the behaviors of what effective leaders "do" Problem with this theory is that it doesn't take into account the situation

If you were a change leader, how might you deal with active resistors? What might you do with Enthusiastic Supporters?

As the leader, I would try to move active resistors to the other side or get rid of them. I would also reward the enthusiastic supporters.

Define the phases of how individuals tend to adopt change. Be able to diagnose which phase of adoption an individual is in if provided with a description of their behavior.

Awareness: target's old routine is challenged with the new routine Interest: target become curious about the change Trial: target begins to experiment with the proposed change Adoption: target replaces old routines with new routines Our job as change agent is to influence people across stages

What is a simple organizational structure?

within organic, low degree of departmentalization, wide spans of control, simple and can make fast decision/communication

What is a virtual organizational structure?

within organic, when we outsource most functions of the job, highly flexible and responsive

Espoused vs. Enacted Culture

•Espoused culture: explicitly stated values and norms that are preferred by an organization •Enacted culture: values and norms that are actually exhibited or converted into employee behavior

Servant Leadership

Focuses on opportunities to help followers and their communities -- motivating from the bottom of the hierarchy

Authentic Leadership

Focuses on the moral aspects of being a leader like being real and genuine

Kotter and Haskett Study

Found there was a modest correlation of culture with long-term performance Companies with performing enhancing culture outperformed those that were not Cultures must adapt

What are the key steps to culture creation and how are company founders important to culture creation?

Founders values and preferences Industry demands Founders give initial direction on how to do things and solve problems that arise and play a crucial role into culture creation To remain effective, cultures must adapt over time

Be able to distinguish a functional structure from a divisional structure? Under what conditions might either be appropriate? Know an advantage of each.

Functional - structures around what people do/their specific functions Works best in stable environments and low interdependance needed between functions Divisional - structures around what's important to the customers/products and services Works best with customers who have divergents needs and when the strategy empahsizes product specialization

Traits connected to leadership

Honesty, integrity, self esteem, and energy/drive

Be able to define and describe the structure choice points of centralization, decentralization, and formalization.

Centralization of decision: degree to which planning and decision making authority is retained at high levels in org Formalization of process: degree to which policies, procuedures, job decriptions, and rules are explicitly detailed Decentralization: planning in the org is maintained throughout the org