Principles of Management-Exam 3
four characteristics common to all organizations
1. Coordination of Effort: Multiplying individual contributions to achieve results greater than those possible by individuals working alone 2. Common Goal or Purpose: Having a focus to strive for something of mutual interest 3. Division of Labor: Dividing tasks into specialized jobs that use human resources efficiently 4. Hierarchy of Authority: Using a chain of command to control and direct the actions of others
business organization in terms of the open-system model
Interaction with the external environment through permeable boundaries An open-system model encourages managers to think about the organization's life-support system
• Identify and explain the seven steps in the PROCEED model of employee selection.
Step 1: Prepare: Identify existing superior performers create a job description for the posistion identify the copetences or skills needed to do the job draft interview questions Step 2: Review review questions for legality and fairness Step 3: Oragnize Select your interview team and your method of interviewing assign roles to your team and divide the questions Step 4: Conduct Gather data from the job candidate Step 5: Evaluate Determine the match between the candidate and the job Step 6: Exchange Share data in a discussion meeting Step 7: Decide Make a final decision
• Describe how performance appraisals can be made legally defensible.
o 1. A job analysis is used to develop the performance appraisal system. o 2. The appraisal system is behavior-oriented, not trait-oriented. o 3. Evaluators follow specific written instructions when conducting appraisals. o 4. Evaluators reviewed the results of appraisals with ratees.
• Describe the difference between a centralized organization and a decentralized organization.
o Centralization: The retention of decision-making authority by top management o Decentralization: The sharing of decision-making authority by management with lower-level employees
• Describe the characteristics of organizational cultures and understand how organizational cultures are formed and sustained.
o Characteristics of Organizational Cultures Collective: Organizations are social entities. Emotionally charged: The organization's culture serves as a security blanket to its members. Historically based: Trust and loyalty result from long-term organizational associations. Inherently symbolic: Actions often speak louder than words. Dynamic: Culture promotes stability and control. Inherently fuzzy: Ambiguity, contradictions, and multiple meanings are part of culture. o Forms and Consequences of Organizational Cultures Organizational values are shared beliefs about what the organization stands for. The degree of sharing and the degree of intensity determine whether an organization's culture is strong or weak.
• Define delegation and list five common barriers to delegation
o Delegation Assigning various degrees of decision-making authority to lower-level employees o Barriers to Delegation Belief that only you can do the job right Lack of confidence and trust in subordinates Low self-confidence Fear of being called lazy Vague job definition Fear of competition from subordinates Reluctance to take risks that depend on others Lack of early warning controls Poor example of bosses who do not delegate
• Identify and describe the five basic departmentalization formats. Describe why different forms of departmentalization is necessary.
o Departmentalization Grouping of related jobs or processes into major organizational units • Overcomes some of the effect of fragmentation caused by differentiation (job specialization) • Permits coordination (integration) to be handled in the least costly manner Sometimes refers to divisions, groups, or units in large organizations o Functional Departments Categorizing jobs according to the activity performed o Product-Service Departments Grouping jobs around a specific product or service o Geographic Location Departments Adopting a structural format based on the physical dispersion of assets, resources, and customers o Customer Classification Departments Creating a structural format centered on various customer categories
• Explain Herzberg's two-factor theory of motivation. According to Herzberg, what motivates people?
o Dissatisfiers come from the job context or situation o Satisfiers come from job content or the work itself o Achievement o Recognition o Work itself o Responsibility o Advancement o Growth
• Describe each major link in the communication process
o Encoding (by sender): translate internal thought into a language or code that the intended receiver of the message will understand o Selecting a medium (by sender) Media richness: a medium's capacity to convey information and promote learning. o Decoding: (by receiver): comprehension of the message received. o Feedback (from receiver to sender) o Noise: any interference with normal flow of communication
• Distinguish between equal employment opportunity, affirmative action, and managing diversity
o Equal Employment Opportunity is aimed at preventing future discrimination. o Affirmative Action Program is a concerted effort to make up for past discrimination. o Managing Diversity in the workplace o "In short, diversity advocates want to replace all forms of bigotry, prejudice, and intolerance with tolerance and, ideally, appreciation of interpersonal differences."
• Describe the Expectancy Theory of motivation. Explain why individual perceptions are so important in each part of the theory.
o Expectancy theory: assumes motivational strength is determined by perceived probabilities of success. o Expectancy: one's belief or expectation that one thing will lead to another. o Three Key Perceptions in Expectancy Theory 1. Perceived effort-performance probability 2. Perceived value of rewards. 3. Perceived performance-reward probability o "Effort---> performance ---> reward expectations determine whether motivation will be high or low." o "Employees tend to work harder when they believe they have a good chance of getting personally meaningful rewards."
• Distinguish between extrinsic rewards and intrinsic rewards. What are the rules for using extrinsic rewards effectively?
o Extrinsic rewards: payoffs granted to the individual by other people (e.g., money, benefits, recognition, praise). o Intrinsic rewards: self-granted and internally experienced payoffs (e.g., a sense of accomplishment).
• Define the term human capital, and identify some people-centered practices for achieving a competitive advantage using human capital.
o Human Capital All present and future workforce participants who need to develop to their full potential as valuable assets to organizations o People-centered organizations enjoy a competitive advantage because of people-centered practices: Protection of job security Rigorous hiring process Employee empowerment Compensation linked to performance Comprehensive training Reduction of status differences Sharing of key information
• Explain what human resource management involves.
o Human Resource Management (HRM) The proactive acquisition, retention, and development of human resources necessary for organizational success Moved from a support staff function (personnel) to a more strategic role in organizations
• Distinguish between mechanistic and organic organizations
o Mechanistic Organizations Are rigid in design, rely on formal communications, and have strong bureaucratic qualities best suited to operating in relatively stable and certain environments o Organic Organizations Have flexible structures, have participative communication patterns, and are successful in adapting to change in unstable and uncertain environments
media richness
o Media richness: a medium's capacity to convey information and promote learning.
• Explain the time dimension of organizational effectiveness
o Meeting organizational objectives and prevailing societal expectations in the near future o Adapting to environmental demands and developing as a learning organization in the intermediate future o Surviving as an effective organization into the distant future
• Explain how quality control circles, open-book management, and self-managed teams promote employee participation.
o Quality control circles: voluntary problem-solving groups committed to improving quality and reducing costs. o Self-managed teams: high-performance teams that assume traditional managerial duties such as staffing and planning. o Open-Book Management (OBM) Benefits of OBM • Displays a high degree of trust in employees • Creates strong commitment to employee training • Teaches patience when waiting for results
• Describe the motivational lessons taught by Maslow's theory.
o Self-actualization needs (being everything one is capable of becoming) o Esteem needs (Self-respect; self-confidence) o Love needs (Social acceptance and affection) o Safety needs (Protection from the elements) o Physiological needs (Life-sustaining needs)
• Describe the important components of an organization's policies for dealing with sexual harassment and alcohol and drug use
o Sexual Harassment: Unwanted attention that creates an offensive or intimidating work environment Unwanted physical contact Gestures, displays, joking, and language It is the manager's job to be aware of and to correct cases of harassment. Ignorance of such activity is not a valid legal defense. o CONTROLLING DRUG & ALCOHOL ABUSE Alcoholism: A disease in which alcohol disrupts one's normal life Drug abuse costs employers $100 billion each year. The Legal Side of Workplace Substance Abuse • Recovering drug addicts and alcoholics are covered by the Vocational Rehabilitation Act of 1973. • Employers with federal contracts exceeding $25,000 must comply with the Federal Drug-Free Workplace Act of 1988. Referral and Rehabilitation • How to assist an abusing employee o Don't accuse the employee; offer help after the employee self-admits the problem. o Don't "play doctor." o Refer the employee to an employee assistance program (EAP) or community resources for rehabilitation.
• Compare and contrast skill learning and factual learning.
o Skill (Versus Factual) Learning o 1. Goal setting o 2. Modeling (Substitute meaningful presentation of materials for factual learning) o 3. Practice o 4. Feedback
• Explain how job enrichment can be used to enhance the motivating potential of jobs.
o Skill variety: The variety of activities required in carrying out the work o Task identity: The completion of a "whole" and identifiable piece of work o Task significance: How much impact the job has on the lives of other people o Autonomy: The freedom, independence, and discretion that one has to do the job o Job feedback: How much performance feedback the job provides to the worker
• What types of goals motivate?
o Specific o Difficult o Participatively set
• Explain the differences between structured interviews and unstructured interviews.
o Structured interviews: A set of job-related questions with standardized answers. Question types used in structured interviews (See Table 10.4): • Situational: Can applicant handle difficult situations likely to be encountered on the job? • Job Knowledge: Does the applicant have the knowledge required for successful performance? • Job Sample Simulation: Can the applicant actually do essential tasks necessary for successful performance? • Worker Requirements: Is the applicant willing to cope with job demands such as travel, relocation, physical abilities, etc... Behavior-Based Interview: Asking candidates detailed questions about specific behaviors in past job-related situations
• Explain how the traditional pyramid organization is being reshaped. What are three modern forms described in class and the text?
o The Changing Shape of Organizations Characteristics of New Organizations • Fewer organizational layers • More teams • Smallness within bigness New Organizational Configurations • Hourglass organization: Three-layer structure with constricted middle (management) layer • Cluster organization: Collaborative structure in which teams are the primary unit • Virtual organizations: Internet-linked networks of value-adding subcontractors
• Discuss why it is important for managers to know about the grapevine and nonverbal communication.
o The grapevine is the unofficial and informal communication system in an organization.
• Explain the concept of contingency organization design
o The process of determining the degree of environmental uncertainty and adapting the organization and its subunits to the situation How much environmental uncertainty is there? What combination of structural characteristics is most appropriate? o There is no single best organization design.
• Describe practical tips for improving each of the following communication skills: listening, writing, and running a meeting.
o Tips for More Effective Listening: Tolerate silence. Listeners who rush to fill momentary silences cease being listeners. Ask stimulating open-ended questions, ones that require more than merely a yes or no answer. Encourage the speaker with attentive eye contact, alert posture, and verbal encourages such as "um-hum," "yes," and "I see." Occasionally repeating the speaker's last few words also helps. Paraphrase. Periodically restate in your own words what you have just heard. Show emotion to demonstrate that you are a sympathetic listener. Know your biases and prejudices and attempt to correct for them. Avoid premature judgments about what is being said. Summarize. Briefly highlight what the speaker has just finished saying to bring out possible misunderstandings. o TIPS FOR EFFECTIVE WRITING 1. Keep words simple. 2. Don't sacrifice communication to rules of composition. 3. Write concisely. 4. Be specific. o Conducting Meetings Meet for a specific purpose. Distribute the agenda in advance of the meeting. Communicate preparation expectations to attendees. Limit attendance to essential personnel. Open with a brief overview; review important items first. Encourage participation but keep to the agenda. Limit use of visual aids. Clarify after-meeting action items. Follow a specific start and end time and follow up.
• Explain ways in which management can encourage upward communication.
o Upward communication: process of systematically encouraging lower-level employees to share with management their feelings and ideas. o Types of Upward Communications Formal grievance procedures Employee attitude and opinion surveys Suggestion systems Open-door policy Informal meetings Task forces Exit interviews
Interacting organizational subsystems
• Technical subsystem (production function) transforms raw materials into finished goods and services. • Boundary- spanning subsystems provide the organization's interface with the external environment. • Managerial subsystems bridge (control and direct) the technical and boundary-spanning subsystems.
• Describe how goal setting motivates performance.
Directing attention Encouraging effort Encouraging persistence Fostering goal-attainment strategies & action plans
• Describe different ways to evaluate or appraise employees
Goal setting (management by objectives) Written essays Critical incidents Graphic rating scales Behaviorally anchored rating scales (BARS): performance rating scales divided into increments of observable job behavior determined through job analysis. Weighted check lists Rankings / comparisons Multi-rater appraisals 360-Degree Review: a manager is evaluated by her or his boss, peers, and subordinates.
. Describe the ingredients of a good training program.
Maximize similarity between the training and the job. Provide as much experience as possible. Provide a variety of examples. Label or identify important task features. Make sure general principles are understood. Reward trained behaviors and ideas. Design training content for obvious applicability. Use questions to guide trainee's attention.
• Identify and describe the different barriers to communication.
Process Barriers • Sender barrier • Encoding barrier • Medium barrier • Decoding barrier • Receiver barrier • Feedback barrier Physical Barriers: Walls, ear protection, distance, etc... Semantic Barriers: miscommunication caused by different perceptions of the meaning of words. Psychosocial Barriers • Differing backgrounds, perceptions, values, biases, needs, and expectations of individuals can block communications.
• Identify the five communication strategies, and specify guidelines for using them.
Spray & Pray: Impersonal and one-way communications (lectures) Tell & Sell: A restricted set of messages with explanations for their importance and relevance Underscore & explore: Information and issues that are keys to organizational success are discussed and explained with Two-way communication. Identify & Reply: Responding to employee concerns about prior organizational communications Withhold & uphold: Telling employees only what they need to know when you think they need to know it