Management Final (8.9.10)

Mediation

the process in which a neutral third party, a mediator, listens to both sides in a dispute, makes suggestions, and encourages them to agree on a solution

Arbitration

the process in which neutral third party, an arbitrator, listens to both parties in a dispute and makes a decision that the parties have agreed will be binding on them

Differentiation or Integration

Differentiation- Tendency of the parts of an organization to disperse and fragment Integration- Tendency of the parts of an organization to draw together and achieve a common purpose

Ways to deal with change and innovation

- Allow room for failure - Give one consistent explanation for the change - Look for opportunities in unconventional ways - Have the courage to follow your ideas

Understanding Current Employee needs

Job Description- Summarizes what the holder of a job does and why they do it Job Specification- Describes the minimum qualifications a person must have to perform a job successfully

Measurable and controllable activities

Leaders pay attention to, measure, and control activities, processes, and outcomes that reinforce a desired culture

The Degree to which employees fear change

Least Threatening: Adaptive Change Somewhat Threatening: Innovative Change Very Threatening: Radically Innovative Change

Horizontal Design

Teams/workgroups are used to: improve collaboration, work of shared tasks. - cross functional teams: Brought together to sole particular problems (people from various functional departments)

Link between Strategy and Structure

The organization's strategy must be supported by its structure - As organizations change their strategy, they must ensure the structure also changes - cost minimization strategy: supported by mechanistic structure - innovation strategy: supported by organic structure - imitation strategy: supported by mix of mechanistic and organic structures

role modeling, training, and coaching

Triage Consulting Group emphasizes the importance of superior performance by: - Enrolling new hires in 4-day orientation program focused on culture and methods - Requiring new hires to complete 15 training modules over 6-week course -Conducting performance evaluations 4 times a year

product innovation

a change in the appearance or the performance of a product or a service or the creation of a new one

process innovation

a change in the way a product or service is conceived, manufactured, or disseminated

grievance

a complaint by an employee that management has violated the terms of the labor-management agreement

change agent

a consultant with a background in behavioral sciences who can be a catalyst in helping organizations deal with old problems in new ways

organizational structure

a formal system of task and reporting relationships that coordinates and motivates organizational members so they work together to achieve organizational goals

Forced Ranking

all employees within a business unit are ranked against one another and grades are distributed along some sort of bell curve

Resistance to change

an emotional/behavioral response to real or imagined threats to an established work routine

Five Steps in the Training Process

1. Assessment 2. Objectives 3. Selection 4. Implementation 5. Evaluation

Life Cycle

1. Birth: non-bureaucratic, organization is created, no written rules or policies, little if any support staff 2. youth: pre-bureaucratic, organization is in growth and expansion period, rules are implemented, employee pool is growing with division of labor 3. Midlife: Bureaucratic stage, organizational growth is followed by stability, formalized bureaucratic structure with many rules, specialists are hired and functional divisions are formed, decentralized 4. Maturity: Organization is very bureaucratic, large and mechanistic, lack of flexibility and innovation becomes quite likely

Areas in which change is often needed

1. Changing people (perceptions, attitudes, performance, skills) 2. Changing technology 3. Changing structure 4. Changing strategy

Process of Culture Change

- preferred values, beliefs, expectations, and behaviors: dove via, formal statements, slogans, sayings, stories, leader reaction to crisis, physical design

Organizational systems and procedures

use of technology to increase: collaboration among employees, innovation, efficiency, quality

Leader reaction to crises

How senior leaders respond to critical incidents sends clear message

Physical Design

- Egalitarian: uniform cubicles, no reserved parking spaces - Innovation/ Creativity: open-seating arrangements, small conference rooms

Types of Organizational Structure

- Hierarchical: reinforce culture of command and control - Flat: eliminates management layers in favor of employee empowerment - Spaghetti: mobile desks on wheels, always subject to reorganization

Rewards, titles, promotions & bonuses

- Merit pay/ bonuses - triage consulting group: pays employees at same level of career same salary

How organizational culture enhances firm performance

- Strength perspective: Assumes strength of corporate culture is related to long-term financial performance of the company strong culture- Exists when employees adhere to the organization's values because they believe in its purpose weak culture- Exists when employees are forced to adhere to organizational values via extensive procedures and bureaucracies - fit perspective: Assumes organizational culture must align with the business or strategic context, correct fit should lead to high financial performance - Adaptive perspective: Assumes the most effective cultures help organizations anticipate and adapt to environmental changes, delivering superior customer value

How employees learn culture

- Symbols: object, act, quality, or event that conveys meaning to others, purpose is to convey organizations most important values - stories: narrative based on true events which is repeated and sometimes embellished to emphasize particular value, purpose is to have oral histories that are told and retold by members about the organizations history - heroes: person whose accomplishments embody the values of the organization, purpose is to put forth to motivate other employees to do the right thing - rites and rituals: activities, ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organizations life

workplace discrimination

- adverse impact- occurs when an organization uses an employment practice or procedure that results in unfavorable outcomes to a protected class - disparate treatment- results when employees from protected groups are intentionally treated differently * both of these deal with handling of "protected" groups (ex: disabled or minority groups)

Compensation

- two tier wage contracts: new employees are pain less or receive lesser benefits than veteran employees have - cost of living adjustment: clause during the period of the contract ties future wage increases to increase the cost of living - Givebacks: the union agrees to give up previous wage or benefit gains in return for something else

Compensation and Benefits

-Fair Labor Standards Act of 1938 (FLSA): established minimum living standards for workers engaged in interstate commerce, including provision of a federal minimum wage

Two types of Change

-Reactive change making changes in response to problems or opportunities as they arise -Proactive change involves making carefully thought-out changes in anticipation of possible or expected problems or opportunities also called planned change

Who should make performance appraisals?

-peers and subordinates -customers and clients -self-appraisals

Gain Allies by Communicating Your Vision

-showing how the product or service will be made -showing how potential customers will be reached -demonstrating how you'll beat your competitors -explaining when the innovation will take place

Four Types of Organizational Culture

1. Clan- Family like, encourages collaboration, increases employee commitment through employee involvement, devotes considerable resources to hiring and developing employees 2. Adhocracy- innovative products by being adaptive, creative, and quick to respond, encourages employees to take risks 3. Market- driven by competition and strong desire to deliver results, employees work hard, react fast, deliver quality work on time, reward employees who deliver results 4. Hierarchy- formalized structured work environment, achieve effectiveness through control mechanisms that measure efficiency, timeliness, reliability in creation and deliver products (UPS)

Basic Elements of Organizations

1. Common Purpose: unifies employees or members and gives everyone and understanding of the organization's reason for being 2. Coordinated Effort: Coordination of individual efforts into a group or organization wide effort 3. Division of labor/ work specialization: Arrangements of having discrete parts of a task done by different people (results in greater efficiency) 4. Hierarchy of Authority/ Chain of command: Control mechanism for making sure the right people do the right things at the right time, For coordinated effort to be achieved, managers need to have more authority 5. Span of control: Number of people reporting directly to given manager (Narrow/tall: manager has limited number of people reporting, many levels w/ narrow span of control, Wide/flat: manager has several people reports, few levels with wide span of control) 6. Authority, responsibility, and delegation: Authority- rights inherent in managerial position to make decisions, give orders, and utilize resources. responsibility- obligation to perform task assigned to you Delegation- Process of assigning managerial authority and responsibility to manager and employees lower in the hierarchy 7. Line vs. Staff position: line- Line managers have authority to make decisions and usually have people reporting to them staff- Provide advise, recommendations, and research to line managers (Staff personnel have authority functions)

The Forces for Change: Outside the organization

1. Demographic characteristics 2. Market changes 3. Technological advancement 4. Shareholder, customer demands 5. supplier practice 6. Social & political pressures

The Organizational development process

1. Diagnosis 2. Intervention 3. Evaluation 4. Feedback

Forces Originating inside the organization

1. Employee problems 2. Managers' behavior

Steps to Leading Organizational Change

1. Establish a sense of urgency 2. Create the guiding coalition 3. Develop a vision and strategy 4. Communicate the change vision 5. Empower the broad-based action 6. Generate short-term wins 7. Consolidate gains and produce more change 8. Anchor new approaches in the culture

Types of organizations

1. For-profit: formed to make money by offering products or services 2. Nonprofit: formed to offer services to some clients, not to make a profit 3. Mutual-benefit: voluntary collectives whose purpose is to advance members' interests and satisfy their needs 4. Blended Value: provides a service and makes a profit

Fundamental Change: What you will need to deal with

1. Marketplace: more segmented, more niche products 2. competitors: greater quantity offering targeted products, requires faster speed-to-market 3. traditional companies: some many not survive radically innovative change 4. offshore suppliers: China and India, change the way we work 5. New Competitive advantage: knowledge, not information

The effectiveness of Organizational Development

1. Multiple interventions 2. Management support 3. Goals geared to both short and long term results 4. OD is affected by culture

Three Levels of Culture

1. Observable Artifacts- physical manifestations of culture (slogans, manner of dress, symbols, stories, awards) 2. Espoused values vs. enacted values- Espoused: explicitly stated values and norms preferred by the organization Enacted: values and norm actually exhibited in the organization 3. Basic Assumptions- unobservable, the core culture, consists of values, beliefs, and assumptions

Traditional Organizational Designs

1. Simple structure: use with small firms, authority is centralized in single person, hierarchy flat, rules and policies few, work specialization low 2. Functional Structure: people with similar occupational specialties are put together in formal groups (marketing, production, finance, research) 3. Divisional structure: people with diverse occupational specialties are put together in formal groups according to- product or service, customer or client, and geographic region 4. Matrix: combines functional and divisional chains of command in a grid so that there are two command structures

Four organizational Functions of Culture

1. gives members an organizational identity 2. facilitates collective commitment 3. promotes social system stability 4. shapes behavior by helping employees make sense of their surroundings

What can organizational development be used for?

1. managing conflict 2. revitalizing organizations 3. adapting to mergers

Four steps for fostering innovation

1. recognize problems and opportunities and devise solutions 2. gain allies by communicating your vision 3. overcome employee resistance, and empower and reward them to achieve progress 4. execute well by effectively managing people, groups, and organizational processes and systems in the pursuit of innovation

organizational culture

A system of shared beliefs and values that develop within an organization and guide the behavior of its members. - Social glue that binds members of the organization together (organization's personality) - different organizations place different emphasis on risk taking, treatment of employees, teamwork, rules, regulations, conflicts, criticism, rewards

Changing Technology

Any machine or process that enables an organization to gain a competitive advantage in changing materials used to produce a finished product

subjective appraisal

Based on a manager's perceptions of an employees traits and behaviors (BARS- rates employee gradations in performance according to scales of specific behaviors)

Centralization vs. Decentralization of authority

Centralized- important decisions are made by higher-level managers Decentralized- important decisions are made by middle-level and supervisory-level managers

Compensation & Benefits

Compensation- wages or salaries, incentives, benefits Base pay- basic wage or salary paid employees in exchange for doing their jobs

Performance Management

Continuous cycle of Improving job performance through: - goal setting - feedback - coaching - rewards and positive reinforcement

Formal Statements

Culture is embedded through- formal statements of organizational philosophy, mission, vision, and values.

The organizational Chart

Defined: Box-and-lines illustrations showing the formal lines of authority and the organization's official positions or divisions of labor - reveals two types of information: 1. vertical hierarchy of authority- official communication network (chain of command) 2. Horizontal Specialization- different jobs for work specialization

contingency design

Defined: The process of fitting the organization to its environment (must consider 4 factors) 1. The environment- mechanistic or organic 2. The environment- differentiation or integration 3. life cycle 4. link between strategy and structure

Slogans and Sayings

Desirable organizational culture can be expressed in- Language, slogans, sayings, acronyms

Organizational goals and performance criteria

Desired organizational culture reinforced via: establishment of organizational goals, criteria for recruiting, selection, promotions, termination

Equal Employment Opportunity

Equal Employee Opportunity Commission: Job is to enforce antidiscrimination and other employment related laws Discrimination: Occurs when people are hired or promoted- or denied hiring or promotion for reasons not relevant to the job Affirmative Action: focuses on achieving equality of opportunity within an organization including establishment of minority hiring goals

boundaryless organization

Fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks - Hollow: referred to as network structure, organization retains core competencies and outsources others - modular structure: Outsources pieces of a product to other organizations, Firm assembles product chunks provided by outside contractors - virtual structure/organization: members who are geographically dispersed, collaborate via email, video conferencing, and other computer connections

seeds of innovation

Hard work in a specific direction Hard work with direction change Curiosity Wealth and money Necessity Combination of seeds

Predicting Future Employee Needs

Human resource Inventory: report that lists the organization's employees by: - name, education, training, languages.

Reasons Employees Resist Change

Individual's predisposition toward change Surprise and fear of the unknown Climate of mistrust Fear of failure Loss of status or job security

Mechanistic or Organic

Mechanistic organization: Use when rigidity and Uniformity work best, authority centralized, tasks specialized, many rules and procedures that are clearly specified, few teams or task forces, communication formalized (Top-down), narrow span of control Organic organization: Use when things must change constantly, authority decentralized, tasks shared, rules and procedures fewer, many teams or task forces, informal communication, wider span of control

labor relations

National Labor Relations Board: Enforces procedures whereby employees may vote for a union and collective bargaining Collective Bargaining: Negotiations between management and employees about disputes over compensation, benefits, working conditions, and job security

labor unions

Organizations of employees formed to protect and advance their members' interests by bargaining with management over job-related issues

Orientation, Training, & Development

Orientation: helping the newcomer fit smoothly into the job and the organization, designed to give employees the information they need to be successful Training: Educating technical and operational employees in how to better do their current jobs Development: Educating professionals and managers in the skills they need to do their jobs in the future

Union Security clause

Part of the labor-management agreement that states the employees who receive union benefits must join the union or at least pay dues to it

Lewin's Change Model

Phase 1: Unfreezing- creating the motivation to change Phase 2: Changing- learning new ways of doing things Phase 3: refreezing- making the new ways normal

recruitment

Process of locating and attracting qualified applicants for jobs opening in the organization - Internal: making people already employed by the organization aware of job openings - external: attracting job applicants from outside the organization Realistic Job Preview: Gives a candidate a picture of both the positive and negative features of the job and the organization before he is hired (People tend to quit less frequently and be more satisfied)

Selection

Selection Process: screening of job applicants to hire the best candidate (application forms, resumes, reference checks) Unstructured Interview: no fixed set of questions and no systematic scoring procedure, involves asking probing questions to find out what the applicant is like Structured Interview: involves asking each applicant the same questions and comparing their responses to a standardized set of answers (Situational and Behavioral) Employment Tests: legally considered to consist of any procedure used in the employment selection decision process (ability, performance, personality)

Collin's five stages of decline

Stage 1 Hubris Born of Success Stage 2 Undisciplined Pursuit of More Stage 3 Denial of Risk and Peril Stage 4 Grasping for Salvation Stage 5 Capitulation to Irrelevance or Death

Organization

System of consciously coordinated activities or forces of two or more people

objective appraisal

based on facts and are often numerical; measure results and are harder to challenge legally

Workplace Labor Agreements

closed shop-Employer may hire only workers for a job who are already in the union union shop-workers aren't required to be union members when hired for a job but must join the union within a specific time agency shop-workers must pay equivalent of union dues but aren't required to join the union open shop- workers may choose to join or not join a union

Formal Appraisal

conducted at specific times throughout the year and based on performance measures that have been established in advance

informal appraisals

conducted on an unscheduled basis and consist of less rigorous indications of employee performance

Performance Appraisal

consists of assessing an employer's performance and providing him with feedback

strategic human resource planning

consists of developing a systematic, comprehensive strategy for understanding current employee needs and predicting future employee needs

Human Resource Management

consists of the activities managers perform to plan for, attract, develop, and retain an effective workforce

sexual harassment

consists of unwanted sexual attention that creates an adverse work environment

incremental innovation

creation of products, services, or technologies that modify existing ones

Radical Innovation

creation of products, services, or technologies that replace existing ones

Job Analysis

determining the basic elements of a job by observation and analysis

hostile environment

offensive work environment

Celebrating failure: Factors encouraging innovation

organizations can make innovation happen by providing the: 1. Right organizational culture 2. appropriate resources 3. correct reward system

Managing promotions, transfers disciplining, & dismissals

promotion- moving upward transfer- moving sideways disciplining & demotion - the threat of moving downward dismissal- moving out of the organization

stories. myths, and legends

repeated narrative told to emphasize a particular value, Veracity of the story is not important, so long as it is believable.

Organizational Development

set of techniques for implementing planned change to make people and organizations more effective

quid pro quo

tangible economic injury