mgmt ch 7 - ch 12

Why Incentives May not Work

•Performance pay can't replace good management •You get what you pay for •Pay is not a motivator •Rewards punish •Rewards rupture relationships •Rewards can unduly restrict performance quality •Rewards may undermine responsiveness •Rewards undermine intrinsic motivation

Describe a decentralized organization

-key decisions made at all levels -attract highly skilled employees -enhances ability to adjust

Forecasting Staffing Supply

-look inside org: org/replacement charts, skills/qualifications inventories, talent reviews/ succession planning -look outside org: occupational mkt conditions, skills available in mkt

Describe ambidextrous organizations

-maintain efficiency in current strategic operations while preparing for imminent changes -create a separate team to work on future ops while the rest of the firm focuses on primary business -creates a forum for innovation and creativity

Adapting culture to a new contextual landscape

-need culture change when new task are in co.'s future/ when an orgs culture starts to become a handicap -culture can be changed smoothly by paying attention to the task that is performed on a continusous basis -at the time of crisis co culture change more quickly

The clan approach of organizational control

-self-supervising teams -each member is cross trained -individual goals and values overlap with orgs

External Fit is affected by...

-type of competitive strategy that a co pursues 1. Cost leadership strategy -HR practices should focus on cost-effectively increasing productivity 2. Differentiation strategy -HR practices should include: -Constant feedback system -Moderate collaboration across functions -Employee participation in decision making 3. Focused innovation strategy -HR practices should allow for: -Greater autonomy and room for experimentation -Ample opportunities for development and training

Evaluating culture in mergers and acquisitions

-understanding the acquiring and acquired firm's culture -combine 2 cultures -much of the value of an acquired firm may be in its culture

Network form of org structure.

-uses cross functional teams & technology -geographically dispersed group -emphasizes informal structure of the firm -resources quickly shift between groups -quick adaptation to changes

What is culture?

-way ppl in org uniquely and collectively think, feel, and act -provides road map & rules for how work gets done -invisible rules that guide behaviors -responds to need for stability, consistency and meaning -needs to be externally relevant to ensure firm operates successfully as environment changes -driver of competitive advantage

Org Wide Variable Pay Plans

1. Gain sharing: team based compensation, rewards teams based on achievements associated w/ productivity, efficiency or quality 2. profit sharing: team based, rewards based on improvements in profitability 3. employee stock ownership plan: trust distributes stock to employees on retirement/separation

Role of leadership across life-cycle changes

1. start up: less standardization, heightened coordination, broad decision rights, open boundaries 2. growth: division of labor, coordinating mechanisms 3. decline: informal more important

Long term competitiveness need org designs that...

1. support current strategic imperative 2. flexible enough to adapt to changes in the market

Great leaders realize they can execute only ______________ goals w/ excellence at one time

2 or 3

Define survivor syndrome

A condition that can occur when certain employees who survive a downsizing become narrow-minded, self-absorbed, resentful or risk-averse

Define cafeteria plans

An arrangement that allows employees to make their own choice about benefit options

Define Division of Labor.

The manner in which work in a firm is divided among employees Advantages: -develop expertise or competency in a certain skill or function - quick and efficient training of new resources Disadvantages: -tedious repetitive work can lead to low job satisfaction -firms are unable to prevent turnover

Balanced Scorecard

The method created to help businesses translate strategy into action by identifying the most critical measures to drive business success and linking long-term strategic goals with short-term operational actions

Job Analysis

The process of analyzing information about specific job tasks in order to provide a more precise job description and job specification -interviews w/ mgmt and current jobholders -observations in the workplace -self-administered questionnaires

Define socialization.

The process of understanding how work gets done and how individuals should interact in an organization Outcomes: -Performance -Satisfaction -Mutual influence -Low levels of distress -Intent to remain

Organizational design levers are concerned with...

how decisions are made

Define benefits

indirect financial payments given to employees (e.g., health & life insurance, vacation, retirement, training)

Types of Unions

industrial craft

To stay competitive, managers need to pay attention to issues of...

internal integration: how work is accomplished in a firm external adaptation: how environmental changes impact a firm's strategy

Organizers are those who believe that more control is warranted in...

organizational design for: 1. greater job standardization 2. specific definitions of roles 3. more hierarchal leadership

Define a functional structure of an organization.

organizes a firm in terms of the main activities -Each dept conducts its own budgeting & planning processes -Careers w/in function -good for small businesses and businesses with a limited number of products or services -Easy flow of communication (within function) -Straightforward approach to supervision -Reduced level of redundancy• -groups can become isolated-focus on group goals -Silos -communication is key to cooridnation -Best for competitive situations that need efficiency of production or functional expertise -stability

Define Offshoring

outsourcing a business activity to a contractor in a foreign country

Needs assessment

process by which an org determines what type of training needs to be done and who is best positioned to deliver the training

Define mutual adaptation.

process by which firms impact the nature of their overarching industrial environment and adapt their organization in response to (are impacted by) evolving contextual factors -Critically important in industries where change is a constant, such as technology and fashion

Define delegation.

process by which managers transfer decision rights to individuals

Management by Objectives (MBO)

the process of managing employees by outlining a series of specific measurable objectives or milestones that they are expected to meet in a time pd.

Realistic job preview

when an org provides info to candidates that highlights most important conditions of job both + and -

Driving Success in Your Career

•Before considering different career options an individual must determine: -His strengths and values -What he would like to do -What he is good at -What his interests are •Feedback analysis: Strategy for discovering individual strengths -Involves tracking the results of an individual's key actions and decisions

Compensation: Establishing Pay Rates

-Conduct a Salary Survey to price benchmark jobs -Determine the relative worth of each job to the firm (Job Evaluation) 1. Compare content of jobs using compensable factors (e.g., skills, effort, responsibility, working conditions) 2. Results in a wage or salary hierarchy -Group similar jobs into pay grades (equal difficulty) -Price each pay grade 1. Wage curve -shows value of job & average wage for the job -Fine tune pay rates 1. Develop rate ranges

Why is culture so important?

-Provides a sense of identity to members & increases their commitment -Provides a way for employees to interpret the meaning of organizational events -Reinforces the values of the organization -Serves as a control mechanism for shaping behavior

Behaviorists are those who support...

-a more open org design structure -loosely defined roles & responsibilities

How does culture affect performance? A strong culture

-better performance, higher fin. metrics, distinct competitive advantage -promotes ethical guidelines that define acceptable behavior -helps org require less coordination and monitoring -clarifies roles

Internal Fit

-building and aligning HR practices in support of the co.'s strategy -is a source of competitive advantage when firm's HR: 1. add value to firm 2. cannot exist outside the co 3. cannot be easily imitated 4. cannot be substituted by another resource

Describe informal structures

-contribute to defining an organization -develop over a pd of time -not listed in bylaws/ mgmt practices -affected by org changes

Human Resource Management

-determine nature of jobs -planning labor needs -recruiting candidates -selecting candidates -onboarding, socializing and training -compensation -incentive and benefits -appraising -coaching & counseling - training & developing -build employee commitment & engagement

How does culture affect performance? An adaptive culture

-encourages confidence & risk taking -leadership produces change -fouces on changing needs of customers -associated w/ excellent performance -facilitate change to meet needs of stockholders and employees

Forecasting Staffing Needs Considerations of forecasting

-estimate sales -est. staff needed to achieve this level -considerations: 1. projected TO 2. quality and skills of current staff 3. strategic decisions to upgrade products/ services 4. tech that inc productivity 5. financial resources available

The Burearucratic approach of organizational control

-extreme form -highly formalized systems -rules, procedures, policies, and instructions -top mgmt dictates direction and activity

Describe a centralized organization

-formal structures of control -larger, older orgs -often functional structure -faster to strategic changes -strong coordination between divisions

For training to be effective, it should fit...

-internally w/ structure and culture -externally w/ strategic, competitive landscape

Pay for Performance & Incentives

1. Incentives for Operations Employees -Piecework (Frederick Taylor -Scientific Management) -Standard Hour Plan -Team variable pay incentive plans 2. Incentives for Managers & Executives -Short-term incentives: Annual Bonus -Long-term incentives: Stock options 3. Incentives for salespeople -Salary -Commission -Combination 4. Incentives for Other Professionals -Merit pay

Recruiting Talent

1. Internal: finding qualified applicants from worker who already work at the firm -advantages: know co culture, background, and products, allows making a quicker and more meaningful impact in the new role; demonstrates access to potential career path 2. External: finding qualified applicants outside the firm -new ideas/industry insights -"buy" competencies -higher compensation offered to external recruits may cause equity issues within a firm

Contextual Forces Impacting Human Capital

1. Legislation 2. labor mobilization 3. globalization

Common Mistakes of Offshoring

1. Managers spend too much time identifying vendors for their offshoring needs and not enough time deciding which activities should be offshored 2. Managers do not account for the inherent risks in offshoring a process 3. Managers fail to realize they can outsource locally or set up an alliance with a partner

Fair Labor Standards Act of 1938 -Transformed the working environment

1. Minimum conditions for health, safety, and general well-being 2. Federal minimum wage 3. Maximum hours for a workweek 4. Officially banned child labor 5. Violators are subject to severe fines and possible imprisonment

Levels of Or Culture

1. artifacts: can be observed (behaviors, ceremonies, stories, rituals & symbols-dress, offices) 2. beliefs and values: meanings that members of org attach to artifacts 3. assumptions: behavior stemming from a belief held by a group that is no longer visible, but has become deeply embedded in the org

Describe a customer-centric model of org design.

1. coordination: structural mechanisms and processes to allow worker to coordinate activities- silo busting 2. cooperation: use informal methods to encourage ppl to come together 3. capability development: help employees develop skills to serve 4. connection: develop relationships w/ parties outside the firm to increase value of firm's offerings

What are the 3 functions of an organization?

1. define the roles or the labor force 2. coordinates activities between members 3. ID the borders of the firm and external relationships

Teams directly impact culture by the manner in which they:

1. encounter big problems 2. solve those problems 3. perceive the effects of their solutions

The 4 Disciplines of Execution

1. focus on the wildly important goal 2. act of lead measures (80/20 rule), predict future results, difficult to measure 3. keep compelling scoreboard: visibile, visual, engaging, doabke, concise 4. create cadence of accountability

Things to keep in mind about goal setting/ MBO

1. goals must be clear & measurable 2. MBO is time consuming 3. setting objective w/ subordinates can turn into a tug of war...objectives must be fair & attainable

A leader's role in shaping culture

1. inspire mgmt and employees to do best 2. empower to make independent decisions & to find ways to improve ops 3. reward achievement 4. create a challenging work environment 5. est. and abide by a clear set of values

Define downsizing

A process designed to reduce inefficiency and waste that builds up in an organization over time in an effort to be more competitive -by dramatically reducing the number of people employed at a firm.

Define a divisional structure of an organization.

A structure that groups diverse functions into separate divisions. -Core functions duplicated •May form competition between divisions •Don't develop same level of functional expertise -allows for greater accountability -best for uncertain markets needing quick response

Vietnam Era Veterans' Readjustment Assistance Act of 1974

Affirmative action for disabled and qualified veterans of the Vietnam era

Wagner Act (National Labor Relations Act) of 1935

Allowed employees the right to organize and fight for better: -Wages -Working conditions -Job security

Pregnancy Discrimination Act of 1978

Amendment to Title VII that prohibits sex discrimination based on pregnancy, childbirth, related medical cond's

Job Description

List of a job's duties, responsibilities, reporting relationships, working conditions & supervisory responsibilities

Mind set of a great leader

Executing on a great strategy takes discipline and weekly accountability toward a few Wildly Important Goals

Mind set of a mediocre leader

If I have a great strategy, everything else will fall in place

Job Specifications

List of a job's "human requirements" -education, skills, experience, personality, etc.

HR Planning

Process of formulating plans to fill or eliminate future openings, based on an analysis of the positions that are expected to be open & needed and whether these will be filled by inside or outside candidates.

Value propositions

Quantitative and qualitative things that customers value most

Taft-Hartley Act of 1947

Reigned in some of the powers of the unions

Define organizational commitment.

The desired end result of socialization whereby employees become committed to the organization and its goals

Define organizational design.

The formal systems, levers, and decisions an organization adopts or employs in pursuit of its strategy

What is the control cycle?

The four-stage process that provides the mechanisms and systems to monitor the transformation process, ensuring that outputs are produced to the desired quality, quantity, and specifications of an organization and its customers

Business process perspective

The framework that focuses on measurements that will improve a company's ability to serve its customers and deliver value propositions to its customers

Customer Perspective

The framework that links key customer-based metrics such as market share and retention to the financial performance of a firm

What are subcultures?

cultures that form around geographic or organizational units in a company -can be a result of/ contribute to silos

Goal Setting

defining objectives/ targets for firm & then dept performance, which lead to individual performance goals

Job Based Pay

determine by nature of particular job

Competency/ Skill Based Pay

determined by individual's personal range, depth and types of skills and knowledge

Define a matrix structure of an organization.

divisional+ functional -managers have equal authority in the organization -core functions are often duplicated in each division

Feedback

mgmt hold periodic performance review meetings to discuss & evaluate employee progress

What are decision rights?

rights that include initiating, approving, implementing, and controlling various types of strategic/ tactical decisions -differ based on vertical/ horizontal dimensions