MGT340test2

Organizational Development (OD)

techniques or programs to change people and the nature and quality of interpersonal work relationships.

The Downside of Traditional Goal-Setting

A problem with traditional goal- setting is that when top managers define the organization's goals in broad terms—such as achieving "sufficient" profits or increasing "market leadership"—these ambiguous goals have to be made more specific as they flow down through the organization. -Managers at each level define the goals and apply their own interpretations and biases as they make them more specific. -what often happens is that clarity is lost as the goals make their way down from the top of the organization to lower levels EX: -TOP MANAGEMENT'S OBJECTIVES- "we need to improve the company's performance" -DIVISION MANAGER'S OBJ- "i want to see a significant improvement in this division profits" -DEPAREMENT MANAGER'S OBJ- "increase profits regardless of the means" INDIVIDUAL EMPLOYEE'S OBJ- "don't worry about quality. just work fast"

Types of Workplace Diversity

AGE - Both Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act of 1967 prohibit age discrimination. -The aging population is a major critical shift taking place in the workforce. -with many of the nearly 85 million baby boomers still employed and active in the workforce, managers must ensure that those employees are not discriminated against because of age GENDER - Women (49.8%) and men (50.2%) now each make up almost half of the workforce. -gender diversity issues are still quite prevalent in organizations. -The gender pay gap- latest info on the ratio of women's to men's median weekly earnings showed the figure at 80.2; the ratio for median annual earnings stood at 77.1. It's important for organizations to explore the strengths that both women and men bring to an organization and the barriers they face in contributing fully to organizational efforts. -many companies are "grooming more women for the corner office." In fact, recent research by McKinsey & Co found that 24 % of senior vice presidents at 58 big companies are women RACE - The biological heritage (including physical characteristics such as skin color and associated traits) that people use to identify themselves -Such racial classifications are an integral part of a country's cultural, social, and legal environments. ETHNICITY - Social traits (cultural background or allegiance) that are shared by a human population DISABILITY/ABILITIES - The Americans With Disabilities Act of 1990 prohibits discrimination against persons with disabilities and requires employers to make reasonable accommodations so their workplaces are accessible to people with physical or mental disabilities and enable them to effectively perform their jobs. -disabilities are the largest minority in US -about 19.8 million working-age Americans with disabilities. That number continues to increase as military troops return from Iraq and Afghanistan. RELIGION - Title VII of the Civil Rights Act prohibits discrimination on the basis of religion (as well as race/ethnicity, country of origin, and sex). -the greatest religious diversity issue in the US revolves around Islam, especially after 9/11. -Islam is one of the world's most popular religions, and some 2 million Muslims live in the US. For the most part, U.S. Muslims have attitudes similar to those of other U.S. citizens. However, there are real and perceived differences. GLBT (gay, lesbian, bisexual, transgender): SEXUAL ORIENTATION AND GENDER IDENTITY - U.S. federal law does not prohibit discrimination against employees on the basis of sexual orientation - estimated 7 million GLBT employees in the U.S. private Sector -Sexual orientation has been called the "last acceptable bias." most people understand that racial and ethnic stereotypes are "off-limits," but it's not unusual to hear derogatory comments about gays or lesbians. OTHER TYPES OF DIVERSITY - diversity refers to any dissimilarities or differences that might be present in a workplace -socioeconomic background (social class and income-related factors) -team members from different functional areas or organizational units -physical attractiveness -obesity/thinness -job seniority -intellectual abilities

Decision-Making Conditions

CERTAINTY- a situation in which a manager can make accurate decisions because all outcomes are known -ideal situation -ex:when Wyoming's state treasurer decides where to deposit excess state funds, he knows exactly the interest rate offered by each bank and the amount that will be earned on the funds. He is certain about the outcomes of each alternative. - most managerial decisions aren't like this. RISK - a situation in which the decision maker is able to estimate the likelihood of certain outcomes -more common -managers have historical data from past personal experiences or secondary information that lets them assign probabilities to different alternatives. UNCERTAINTY- a situation in which a decision maker has neither certainty nor reasonable probability estimates available -the choice of alternative is influenced by the limited amount of available info and by the psychological orientation of the decision maker.

The Changing Workplace

Characteristics of the U.S. Population: TOTAL POPULATION OF THE US- projected to increase to 438 million by the year 2050, up from 296 million in 2005 -82 percent of that increase will be due to immigrants and their U.S.-born descendants. -Nearly one in five Americans will be an immigrant in 2050, compared with one in eight in 2005. RACIAL/ETHNIC GROUPS - changes in the percentages of the Hispanic and white population -the Asian population will almost double AGING POPULATION - median age of 36.9 years up from 36.2 years in 2001. By 2050 one in every five persons will be aged 65 or over. Global Workforce Changes: TOTAL WORLD POPULATION -estimated at over almost 7.023 billion in 2012. -that number is forecasted to hit 9 billion by 2050, at which point the United Nations predicts the total population will either stabilize or peak after growing for centuries at an ever-accelerating rate. AN AGING POPULATION - aging at an unprecedented rate -this demographic trend is one of critical importance for organizations

deep-level diversity

Differences in values, personality, and work preferences. -as you get to know someone surface-level difference become less important and this diversity becomes more important -These differences can affect the way people view organizational work rewards, communicate, react to leaders, negotiate, and generally behave at work.

Contemporary Issues in Planning

How Can Managers Plan Effectively in Dynamic Environments? -In an uncertain environment, managers should develop plans that are specific, but flexible. -Managers need to recognize that planning is an ongoing process (The plans serve as a road map although the destination may change due to dynamic market conditions. They should be ready to change directions if environmental conditions warrant) How Can Managers Use Environmental Scanning? -Environmental scanning - screening info to detect emerging trends -Competitor intelligence - gathering info about competitors that allows managers to anticipate competitors' actions rather than merely react to them -one of the fastest-growing forms of environmental scanning is this -seeks basic info about competitors: who they are? what are they doing? how will what they're doing affect us?

Top Management Commitment to Diversity

MENTORING - a process whereby an experienced organizational member (a mentor) provides advice and guidance to a less-experienced member (a protégé). -Mentors usually provide two unique forms of mentoring functions: career development and social support. DIVERSITY SKILLS TRAINING- specialized training to educate employees about the importance of diversity and to teach them skills for working in a diverse workplace EMPLOYEE RESOURCE GROUP - groups made up of employees connected by some common dimension of diversity. -typically formed by employees themselves, not the organization. -organizations should recognize and support these groups

Intuitive decision- making

Making decisions on the basis of experience, feelings, and accumulated judgment. - five different aspects of intuition: -SUBCONSCIOUS MENTAL PROCESSING- managers use data from subconscious mind to help them make decisions -VALUES OR ETHICS-BASED DECISIONS- managers make decisions based on ethical values or culture -EXPERIENCE-BASED DECISIONS- mangers make decisions based on their past experiences -AFFECT-INITIATED DECISIONS- managers make decisions based on feelings and emotions -COGNITIVE-BASED DECISIONS- managers make decisions based on skills, knowledge, and training

Global OD

OD techniques that work for U.S. organizations may be inappropriate in other countries and cultures.

The Decision-Making Process

STEP 1: Identify a problem -Problem - an obstacle that makes it difficult to achieve a desired goal or purpose. -Every decision starts with a problem, a discrepancy between an existing and a desired condition -EX- Amanda is a sales manager whose reps need new laptops because their old ones are outdated and inadequate for doing their job. To make it simple, assume it's not economical to add memory to the old computers and it's the company's policy to purchase, not lease. Now we have a problem—a disparity between the sales reps' current computers (existing condition) and their need to have more efficient ones (desired condition). Amanda has a decision to make. STEP 2: Identify Decision Criteria -Decision criteria are factors that are important (relevant) to resolving the problem -Every decision maker has criteria guiding his or her decisions even if they're not explicitly stated -EX- Amanda decides that memory and storage capabilities, display quality, battery life, warranty, and carrying weight are the relevant criteria in her decision STEP 3: Allocate Weights to the Criteria -If the relevant criteria aren't equally important, the decision maker must weight the items in order to give them the correct priority in the decision. -A simple way is to give the most important criterion a weight of 10 and then assign weights to the rest using that standard.( you could use any number as the highest weight) STEP 4: Develop Alternatives -List viable alternatives that could resolve the problem -alternatives are only listed (not evaluated just yet) -EX - Amanda, identifies eight laptops as possible choices STEP 5: Analyze Alternatives -Appraising each alternative's strengths and weaknesses -An alternative's appraisal is based on its ability to resolve the issues related to the criteria and criteria weight. -assessed values that Amanda gave each alternative after doing some research on them. Keep in mind that these data represent an assessment of the eight alternatives using the decision criteria, but not the weighting. When you multiply each alternative by the assigned weight, you get the weighted alternatives. The total score for each alternative, then is the sum of its weighted criteria -sometimes a decision maker can skip this step if one alternative scores highest on every criterion, (wouldn't consider weights bc that alternative would already be the top choice) or if the weights were all equal, you could evaluate an alternative merely by summing up the assessed values for each one. - EX: the score for the HP ProBook would be 36, and the score for the Sony NW would be 35. STEP 6: Select an Alternative -Choosing the best alternative -The alternative with the highest total weight is chosen. STEP 7: Implement the Alternative -Putting the chosen alternative into action - Conveying the decision to and gaining commitment from those who will carry out the alternative -if the people who must implement a decision participate in the process, they're more likely to support it than if you just tell them what to do -managers may need to do during implementation is reassess the environment for any changes, especially if it's a long-term decision. Are the criteria, alternatives, and choice still the best ones, or has the environment changed in such a way that we need to reevaluate? STEP 8: Evaluate Decision Effectiveness -The soundness of the decision is judged by its outcomes. -How effectively was the problem resolved by outcomes resulting from the chosen alternatives? -If the problem was not resolved, what went wrong? Was the problem incorrectly defined? Were errors made when evaluating alternatives? Was the right alternative selected but poorly implemented? -The answers might lead you to redo an earlier step or might even require starting the whole process over.

Innovation variables

This "right" environment—that is, an environment that stimulates innovation—includes three variables: STRUCTURAL variables: -organic structures -abundant resources -high interunit communication -minimal time pressure -work and nonwork support HUMAN RESOURCES variables: -high commitment to training and development -high job security -creative people CULTURAL variables: -acceptance of ambiguity -tolerance of the impractical -low external controls -tolerance of risks -tolerance of conflict -focus on ends -open-system focus -positive feedback

Two Views of the Change Process

The Calm Waters Metaphor: -Kurt Lewin's description of the change process as a break in the organization's equilibrium state. -successful change can be planned and requires the three-step change process: -Unfreezing the status quo -Changing to a new state -Refreezing to make the change permanent -managers are realizing the stability and predictability of the calm waters metaphor don't exist. Disruptions in the status quo are not occasional and temporary, and they are not followed by a return to calm waters White-Water Rapids Metaphor: -The lack of environmental stability and predictability requires that managers and organizations continually adapt (manage change actively) to survive -Today, any organization that treats change as the occasional disturbance in an otherwise calm and stable world runs a great risk. Too much is changing too fast for an organization or its managers to be complacent

Types of Plans

The most popular ways to describe organizational plans are breadth (strategic versus operational), time frame (short term versus long term), specificity (directional versus specific), and frequency of use (single use versus standing). -Strategic plans - plans that apply to the entire organization and establish the organization's overall goals -broad -Operational plans - plans that encompass a particular operational area of the organization -narrow -Long-term plans - plans with a time frame beyond three years -Short-term plans - plans covering one year or less (Any time period in between would be an intermediate plan. Although these time classifications are fairly common, an organization can use any planning time frame it want) -Specific plans - plans that are clearly defined and leave no room for interpretation -states its objectives in a way hat eliminates ambiguity and problems with misunderstanding -Directional plans - plans that are flexible and set out general guidelines -provide focus but don't lock managers into specific goals or courses of action. -Single-use plan - a one-time plan specifically designed to meet the needs of a unique situation -Standing plans ongoing plans that provide guidance for activities performed repeatedly -include policies, rules, and procedures *these plans aren't independent* -strategic plans are usually long term, directional, and single use -operational plans are usually short term, specific, and standing.

Immediate Gratification Bias

choosing alternatives that offer immediate rewards and avoid immediate costs. -decision choices that provide quick payoffs are more appealing than those with payoffs in the future.

Randomness Bias

creating unfounded meaning out of random events. -They do this because most decision makers have difficulty dealing with chance even though random events happen to everyone, and there's nothing that can be done to predict them.

Representation Bias

drawing analogies and seeing identical situations when none exist.

Hindsight Bias

mistakenly believing that an event could have been predicted once the actual outcome is known (after-the-fact).

Self-Serving Bias

taking quick credit for successes and blaming outside factors for failures

The Three-Step Change Process

unfreezing--> changing---> refreezing -kurt lewin's process

Heuristics

using "rules of thumb" to simplify decision making. -help make sense of complex, uncertain, and ambiguous info. -Even though managers may use rules of thumb, that doesn't mean those rules are reliable. Because they may lead to errors and biases in processing and evaluating info.

Design thinking

approaching management problems as designers approach design problems.

Sunk Costs Errors

forgetting that current actions cannot influence past events and relate only to future consequences.

Overconfidence Bias

holding unrealistically positive views of oneself and one's performance.

Availability Bias

losing decision-making objectivity by focusing on the most recent events. -It distorts their ability to recall events in an objective manner and results in distorted judgments and probability estimates.

Decision

making a choice from two or more alternatives -making decisions is a process, not just choosing among alternatives (too simplistic)

changing culture

managers need a strategy for managing cultural change -set the tone through management behavior; top mangers, particularly, need to be positive role models. -create new stories, symbols, and rituals to replace those currently in use -select, promote, and support employees who adopt the new values -redesign socialization porcesses to align with the new values -to encourage acceptance of the new values, change the reward system -replace unwritten norms with clearly specified expectations -shake up current subcultures through job transfers, job rotation, and/or terminations -work to get consensus through employee participation and creating a climate with a high level of trust

Confirmation Bias

seeking out info that reaffirms past choices while discounting contradictory info

Framing Bias

selecting and highlighting certain aspects of a situation while ignoring (downplaying or omitting) other aspects. -they distort what they see and create incorrect reference points

Selective Perception Bias

selecting, organizing and interpreting events based on the decision maker's biased perceptions. -This influences the info they pay attention to, the problems they identify, and the alternatives they develop

Stress

the adverse reaction people have to excessive pressure placed on them from extraordinary demands, constraints, or opportunities. -stress isn't always bad, it can be positive especially when it offers a potential gain. For instance, functional stress allows an athlete, stage performer, or employee to perform at his or her highest level at crucial times. -Stressors - factors that cause stress. -personal factors or job related factors -Organizations have no shortage of factors that can cause stress.

Evidence-based management (EBMgt)

the systematic use of the best available evidence to improve management practice -"Any decision-making process is likely to be enhanced through the use of relevant and reliable evidence, whether it's buying someone a birthday present or wondering which new washing machine to buy." -relevant to mangerial decision making -four essential elements: -the decision maker's expertise and judgment -external evidence that's been evaluated by the decision maker -opinions, preferences, and values of those who have a stake in the decision -relevant organizational (internal) factors such as context, circumstances, and organizational members.

Goals

(objectives) - desired outcomes or targets -guide management decisions and form the criterion against which work results are measured. -often described as the essential elements of planning. -You have to know the desired target or outcome before you can establish plans for reaching it.

Contingency Factors in Planning

*3 contingency factors affect the choice of plans* -Length of future commitments: --Commitment Concept: Current plans affecting future commitments must be sufficiently long-term in order to meet those commitments. -organizational level: lower-level managers do operational planning while upper-level managers do strategic planning. -degree of environmental uncertainty: --When uncertainty is high, plans should be specific, but flexible. --Managers must be prepared to change or amend plans as they're implemented. --At times, they may even have to abandon the plans

Innovation and Design Thinking

-A strong connection exists between design thinking and innovation. -"Design thinking can do for innovation what TQM did for quality." Just as TQM provides a process for improving quality throughout an organization, design thinking can provide a process for coming up with things that don't exist. -With a design thinking mentality, the emphasis is on getting a deeper understanding of what customers need and want

Structural Variables

-An organization's structure can have a huge impact on innovativeness -An organic-type structure positively influences innovation. -Because this structure is low in formalization, centralization, and work specialization, it facilitates the flexibility and sharing of ideas that are critical to innovation. -The availability of plentiful resources provides a key building block for innovation. -With an abundance of resources, managers can afford to purchase innovations, can afford the cost of instituting innovations, and can absorb failures. For example, at Smart Balance Inc., the heart-healthy food developer uses its resources efficiently by focusing on product development and outsourcing almost everything else, including manufacturing, product distribution, and sales. The company's CEO says this approach allows them to be "a pretty aggressive innovator" even during economic downturns. -Frequent communication between organizational units helps break down barriers -Innovative organizations try to minimize extreme time pressures on creative activities despite the demands of whitewater rapids environments. Although time pressures may spur people to work harder and may make them feel more creative, studies show that it actually causes them to be less creative -Studies show that an employee's creative performance was enhanced when an organization's structure explicitly supported creativity -Beneficial kinds of support included things like encouragement, open communication, readiness to listen, and useful feedback.

Programmed Versus Nonprogrammed Decisions

-As managers move up the organizational hierarchy, the problems they confront become more unstructured. PROGRAMMED DECISIONS: -Type of problem: structured -managerial level: lower levels -frequency: repetitive, routine -info:readily available -goals: clear, specific -time frame for solution: short -solution relies on: procedures, rules, policies NONPROGRAMMED DECISIONS: -Type of problem: unstructured -managerial level: upper levels -frequency: new, unusual -info: ambiguous or incomplete -goals: vague -time frame for solution: relatively long -solution relies on: judgement and creativity

Stimulating Innovation

-Creativity - the ability to combine ideas in a unique way or to make an unusual association. -Innovation - turning the outcomes of the creative process into useful products, services, or work methods. -the innovative organization is characterized by its ability to generate new ideas that are implemented into new products, processes, and procedures designed to be useful—that is, to channel creativity into useful outcomes.

Changing Organizational Culture

-Cultures are naturally resistant to change. -Conditions that facilitate cultural change: --The occurrence of a dramatic crisis --Leadership changing hands --A young, flexible, and small organization --A weak organizational culture - A culture takes a long time to form, and once established it tends to become entrenched. Strong cultures are particularly resistant to change because employees have become so committed to them.

Understanding the Situational Factors

-Dramatic crisis - an unexpected financial setback, the loss of a major customer, or a dramatic technological innovation by a competitor --Such a shock can weaken the status quo and make people start thinking about the relevance of the current culture -Leadership changes hands - new top leadership can provide an alternative set of key values and may be perceived as more capable of responding to the crisis than the old leaders were -The organization is young and small. (The younger the organization, the less entrenched its culture) -Culture is weak

Techniques for Reducing Resistance to Change

-Education and communication (helping employees see the logic of the change effort) -use when: resistance is due to misinformation or poor communication -adv: clear up misunderstandings -disav:may not work when mutual trust and credibility are lacking -Participation (bringing those individuals directly affected by the proposed change into the decision-making process. Their participation allows these individuals to express their feelings, increase the quality of the process, and increase employee commitment to the final decision) -use when: resisters have the expertise to make a contribution -adv: increase involvement and acceptance -disav: time-consuming; has potential for a poor solution -Facilitation and support (helping employees deal with the fear and anxiety associated with the change effort. This help may include employee counseling, therapy, new skills training, or a short paid leave of absence) -use when: resisters are fearful and anxiety ridden -adv: can facilitate needed adjustments -disav: expensive; no guarantee of success -Negotiation (exchanging something of value for an agreement to lessen the resistance to the change effort. This resistance technique may be quite useful when the resistance comes from a powerful source) -use when: resistance comes from a powerful group -adv: can "buy" commitment -disav: potentially high cost; opens doors for others to apply pressure too -Manipulation and co-optation (covert attempts to influence others about the change. It may involve distorting facts to make the change appear more attractive) -use when: a powerful group's endorsement is needed -adv: inexpensive, easy way to gain support -disav: can backfire, causing change agent to lose credibility -Coercion (use of direct threats or force against the resisters.) -use when: a powerful group's endorsement is needed -adv: inexpensive, easy way to gain support -disav: may be illegal; may undermine change agent's credibility

major equal employment opportunity laws

-Equal pay act (1963)- prohibits pay differences for equal work based on gender -civil rights act, title VII (1964)(amended in 1972)- prohibits discrimination based on race, color, religion, national origin, or gender -Age discrimination in employment act (1967)(amended in 1978)- prohibits discrimination against employees 40 years or older -pregnancy discrimination act (1978)- prohibits discrimination against women in employment decisions on the basis of pregnancy, childbirth, and related medical decisions -mandatory retirement act (1978)- prohibits the forced retirement of most employees -americans with disabilities act (1990)- prohibits discrimination against individuals who have disabilities or chronic illnesses; also requires reasonable accommodations for these individuals -civil rights act of 1991 (1991)- reaffirms and tightens prohibition of discrimination and gives individuals right to sue for punitive damages -family and medical leave act (1993)- gives employees in organizations with 50 or more employees up to 12 weeks of unpaid leave each year for family or medical reasons -lilly ledbetter fair pay act (2009)- changes the statute of limitations on pay discrimination to 180 days from each paycheck

The Legal Aspect of Workplace Diversity

-Federal laws have contributed to some of the social change we've seen over the last 50-plus years. Failure to comply with federal laws, can be costly and damaging to an organization's bottom line and reputation. It's important that managers know what they can and cannot do legally and ensure that all employees understand as well. -Workplace diversity needs to be more than understanding and complying with federal laws. -Organizations that are successful at managing diversity use additional diversity initiatives and programs

Types of Goals

-Financial Goals - related to the expected internal financial performance of the organization. -EX: McDonald's states that its financial targets are 3 to 5 percent average annual sales and revenue growth, 6 to 7 percent average annual operating income growth, and returns on invested capital in the high teens. -Strategic Goals - related to the performance of the firm relative to factors in its external environment (e.g., competitors). -EX: from Bloomberg L.P.: "We want to be the world's most influential news organization." -Stated goals - official statements of what an organization says, and what it wants its various stakeholders to believe, its goals are -these goals can be found in an organization's charter, annual report, public relations announcements, or in public statements made by managers—are often conflicting and influenced by what various stakeholders think organizations should do. -Real goals - goals that an organization actually pursues, as defined by the actions of its members -Actions define priorities.

Approaches to Planning

-In the traditional approach, planning is done entirely by top-level managers often are assisted by a formal planning department -Formal planning department - a group of planning specialists whose sole responsibility is helping to write organizational plans -plans developed by top-level managers flow down through other organizational levels, much like the traditional approach to goal-setting. As they flow down, the plans are tailored to the particular needs of each level. -Although this approach makes managerial planning thorough, systematic, and coordinated, all too often the focus is on developing "the plan"—a thick binder (or binders) full of meaningless info that's stuck on a shelf and never used by anyone for guiding or coordinating work efforts

Human Resource Variables

-Innovative organizations actively promote the training and development of their members so their knowledge remains current; offer their employees high job security to reduce the fear of getting fired for making mistakes; and encourage individuals to become idea champions. -Idea champion - individuals who actively and enthusiastically support new ideas, build support, overcome resistance, and ensure that innovations are implemented

Guidelines for Making Effective Decisions

-Understand cultural differences(not only one best way worldwide to make decisions) -Create standards for good decision making (Good decisions= forward-looking, use available info, consider all available and viable options, and do not create conflicts of interest.) -Know when it's time to call it quits -Use an effective decision making process -Build an organization that can spot the unexpected and quickly adapt to the changed environment

Unstructured Problems and Nonprogrammed Decisions

-Unstructured Problems- problems that are new or unusual and for which info is ambiguous or incomplete. -Whether to build a new manufacturing facility in China is an example of this -Nonprogrammed decisions- unique and nonrecurring and involve custom made solutions.

Cultural Variables

-Innovative organizations tend to have similar cultures. They encourage experimentation, set creativity goals, reward both successes and failures, and celebrate mistakes -Accept ambiguity - too much emphasis on objectivity and specificity constrains creativity. -Tolerate the impractical - Individuals who offer impractical, even foolish, answers to what-if questions are not stifled. What at first seems impractical might lead to innovative solutions. Encourage entrepreneurial thinking -Keep external controls minimal - rules, regulations, policies, and similar organizational controls are kept to a minimum. -Tolerate risk. Employees are encouraged to experiment without fear of consequences should they fail. "Failure, and how companies deal with failure, is a very big part of innovation." Treat mistakes as learning opportunities. -Tolerate conflict. Diversity of opinions is encouraged. Harmony and agreement between individuals or units are not assumed to be evidence of high performance. -Focus on ends rather than means. - individuals are encouraged to consider alternative routes toward meeting the goals. Focusing on ends suggests that several right answers might be possible for any given problem. -Use an open-system focus - managers closely monitor the environment and respond to changes as they occur. For example, at Starbucks, product development depends on "inspiration field trips to view customers and trends." -Provide positive feedback. Managers provide positive feedback, encouragement, and support support so employees feel that their creative ideas receive attention. -Exhibit empowering leadership - leaders lets organizational members know that the work they do is significant. Provide organizational members the opportunity to participate in decision making. Show them you're confident they can achieve high performance levels and outcomes. Being this type of leader will have a positive influence on creativity.

How Can Stress Be Reduced?

-Job-related factors begin with employee selection. -A realistic job preview during the selection process can minimize stress by reducing ambiguity over job expectations. -Managers need to make sure an employee's abilities match the job requirements. When employees are in over their heads, their stress levels are typically high. -Performance planning program such as MBO (management by objectives) will clarify job responsibilities, provide clear performance goals, and reduce ambiguity. -Job redesign is also a way to reduce stress. If stress can be traced to boredom or to work overload, jobs should be redesigned to increase challenge or to reduce the workload

Personal Factors that can Create Stress

-Personal factors that can create stress include family issues, personal economic problems, and inherent personality characteristics -employees bring their personal problems to work with them, a full understanding of employee stress requires a manager to be understanding of these personal factors. -Type A personality - people who have a chronic sense of urgency and an excessive competitive drive and difficulty accepting and enjoying leisure time -Type B personality - people who are relaxed and easygoing and accept change easily. - Until recently, it was believed that Type As were more likely to experience stress on and off the job. A closer analysis of the evidence has produced new conclusions. Studies show that only the hostility and anger associated with Type A behavior are actually associated with the negative effects of stress. And Type Bs are just as susceptible to the same anxiety-producing elements.

Types of Change

-Structure: Changing an organization's structural components or its structural design -changes in external environment or organizational strategies often lead to changes in this -Technology: Adopting new equipment, tools, or operating methods that displace old skills and require new ones -Automation - replacing certain tasks done by people with machines -Computerization -changes in work processes, methods, and equipment -People: Changing attitudes, expectations, perceptions, and behaviors of the workforce(individual and group) -not easy to do

Structured Problems and Programmed Decisions

-Structured Problems- straightforward, familiar, and easily defined problems. -Programmed decision- a repetitive decision that can be handled by a routine approach -standardized routine for handling it -Bc the problem is structured, the manager doesn't have to go to the trouble and expense of going through an involved decision process. -The "develop-the-alternatives" stage of the decision-making process either doesn't exist or is given little attention. Bc once the structured problem is defined, the solution is usually self-evident or at least reduced to a few alternatives that are familiar and have proved successful in the past. -3 types of these 1. Procedure- a series of sequential steps used to respond to a well-structured problem -only difficultly is identifying the problem. once it's clear, so is procedure. For instance, a purchasing manager receives a request from a warehouse manager for 15 tablets for the inventory clerks. 2.Rule- an explicit statement that tells managers what can or cannot be done -frequently used because they're simple to follow and ensure consistency. For example, rules about lateness and absenteeism permit supervisors to make disciplinary decisions rapidly and fairly. 3.Policy- a guideline for making decisions -in contrast to a rule, a policy establishes general parameters for the decision maker rather than specifically stating what should or should not be done. Policies typically contain an ambiguous term that leaves interpretation up to the decision maker.

Popular OD Techniques

-Survey feedback: a technique for assessing attitudes and perceptions, identifying discrepancies in these, and resolving the differences by using survey info in feedback groups -process consultation: an outside consultant helps the manager understand how interpersonal processes are affecting the way work is being done -intergroup development: changing the attitudes, stereotypes, and perceptions that work groups have about each other -team building: activities that help team members learn how each member thinks and works -sensitivity training: a method of changing behavior through unstructured group interaction

Why Do People Resist Change?

-The ambiguity and uncertainty that change introduces -The comfort of old habits -A concern over personal loss of status, money, authority, friendships, and personal convenience -The perception that change is incompatible with the goals and interest of the organization

Approaches to Setting Goals

-Traditional goal-setting - an approach to setting goals in which top managers set goals that then flow down through the organization and become subgoals for each organizational area -assumes that top managers know what's best because they see the "big picture" -the goals passed down to each succeeding level guide individual employees as they work to achieve those assigned goals. -Means-ends chain - an integrated network of goals in which the accomplishment of goals at one level serves as the means for achieving the goals, or ends, at the next level -when the hierarchy of organizational goals is clearly defined -Management by objectives (MBO) - a process of setting mutually agreed upon goals and using those goals to evaluate employee performance -four elements: --goal specificity --participative decision making --an explicit time period --performance feedback. -instead of using goals to make sure employees are doing what they're supposed to be doing, this approach uses goals to motivate them as well. -focuses on employees working to accomplish goals they've had a hand in setting.

Decision-Making Styles

-Your thinking style reflects two things: (1) the source of info you tend to use (external data and facts OR internal sources such as feelings and intuition), and (2) whether you process that info in a linear way (rational, logical, analytical) OR a nonlinear way (intuitive, creative, insightful) -Linear Thinking Style - a person's tendency to use external data/facts; the habit of processing info through rational, logical thinking. -Nonlinear Thinking Style - a person's preference for internal sources of info; a method of processing this info with internal insights, feelings, and hunches.

Decisions Managers May Make

-decision making is important to managers because its part of all four managerial functions -decision making is the essence of management PLANNING -what are the organization's long term objectives? -what strategies will best achieve those objectives? -what should the organization's host term objectives be? -how difficult should individual goals be? ORGANIZING -how many employees should i have report directly to me? -how many centralization should there be in an organization? -how should jobs be designed? -when should the organziation implement a different structure? LEADING -how do i handle employees who appear to be unmotivated -what is the most effective leadership style in a given situation -how will a specific change affect worker productivity? -when is the right time to stimulate conflict? CONTROLLING -what activities in the organization needs be controlled -how should those actives be controlled -when is a performance deviation significant? -what type of management info system should the organxiation have?

Rational Decision-Making

-describes choices that are logical and consistent while maximizing value. -Assumptions of Rationality: -- The decision maker would be fully objective and logical --The problem faced would be clear and unambiguous --The decision maker would have a clear and specific goal and know all possible alternatives and consequences and consistently select the alternative that maximizes achieving that goal -not all managers are rational

Timeline of the Evolution of Workforce Diversity

-diversity has traditionally been considered a term used by human resources departments, associated with fair hiring practices, discrimination, and inequality. But diversity today is considered to be so much more. 1960s-1970s: Focus on complying with laws & regulations -title VII of civil rights act, equal employment opportunity commission, affirmative action policies and programs EARLY 1980s: Focus on assimilating minorities and women into corporate setting -corporate programs developed to help improve self-confidence and qualifications of diverse individuals so the can "fit in" LATE 1980s: Concept of workforce diversity expanded from compliance to an issue of business survival -publication of workforce 2000 opened business leaders' eyes about the future composition of workforce- that is, more diverse; first use of term workforce diversity LATE 1980s- LATE 1990s: Focus on fostering sensitivity -shift from compliance and focusing only on women and minorities to including everyone. making employees more aware and sensitive to the needs and differences of others NEW MILLENNIUM: Focus on diversity and inclusion for business success -workforce diversity seen as core business issue; important to achieve business success, profitability, and growth

Change-Capable Organizations

-link the present and the future. think of work as more than an extension of the past; think about future opportunities and issues and factor them into today's decisions. -make learning a way of life. change-friendly organizations excel at knowledge sharing and management. -actively support and encourage day-to-day improvements and changes. successful change can come from the small changes as well as the big ones. -ensure diverse teams. diversity ensures that things won't be done like they've always been done -encourage mavericks. because their ideas and approaches are outside the mainstream. mavericks can help bring about radical change. -shelter breakthroughs. change-friendly organizations have found ways to protect those breakthrough ideas. -integrate technology. use technology to implement changes -build and deepen trust. people are more likely to support changes when the organization's culture is trusting and managers have credibility and integrity. -couple permanence with perpetual change. because change is the only constant, companies need to figure out how to protect their core strengths during times of change -support an entrepreneurial mindset. many younger employees bring a more entrepreneurial mindset to organizations and can serve as catalysts for radical change

symptoms of stress

-physical- changes in metabolism, increased heart and breathing rates, raised blood pressure, headaches, and potential of heart attacks -psychological- job-related dissatisfaction, tension, anxiety, irritability, boredom, and procrastination -behavioral- changes in productivity, absenteeism, job turnover, changes in eating habits, increased smoking or consumption of alcohol, rapid speech, fidgeting, and sleep disorders

Escalation of commitment

-their decision making is also likely influenced by the organization's culture, internal politics, power considerations, and by a phenomenon called this -an increased commitment to a previous decision despite evidence it may have been wrong

Well-Written Goals

-written in terms of outcomes other than actions -measurable and quantifiable -clear as to a time frame -challenging yet attainable -written down -communicated to all necessary organizational members

Steps in Goal-Setting

1. Review the organization's mission, or purpose. (goals should reflect mission) 2. Evaluate available resources (set goals that are possible to achieve given available resources) 3. Determine the goals individually or with input from others (goals should be measurable, specific, and include a time frame for accomplishments) 4. Write down the goals and communicate them to all who need to know 5. Review results and whether goals are being met.

Steps in MBO

1. the organization's overall objectives and strategies are formulated 2. major objectives are allocated among divisional and departmental units 3. unit managers collaboratively set specific objectives for their units with their managers 4. specific objective are collaboratively set with all department members 5. action plans defining how objectives are to be achieved, are specified and agreed upon by managers and employees 6. the action plans are implemented 7. progress toward objectives is periodically reviewed and feedback is provided 8. successful achievement of objectives is reinforced by performance-bawed rewards

surface-level diversity

Easily perceived differences that may trigger certain stereotypes, but do not necessarily reflect the ways people think or feel. -What you see -age, race, gender, ethnicity, etc. -These differences in characteristics can affect the way people perceive others, especially when it comes to assumptions or stereotyping.

Planning and Performance

Formal planning is associated with: -Positive financial results - higher profits, higher return on assets, and so forth -The quality of planning and implementation affects performance more than the extent of planning -when formal planning didn't lead to higher performance, the external environment was the culprit. external forces (government regulations or powerful labor unions- constrain managers' options) and can reduce the impact of planning on performance -The planning-performance relationship seems to be influenced by the planning time frame. At least four years of formal planning is required before it begins to affect performance

Why Do Managers Plan?

Four reasons for planning: -Provides direction -When employees know what their organization or work unit is trying to accomplish and what they must contribute to reach goals, they can coordinate their activities, cooperate with each other, and do what it takes to accomplish those goals. -Reduces uncertainty -by forcing managers to look ahead, anticipate change, consider the impact of change, and develop appropriate responses. Although planning won't eliminate uncertainty, managers plan so they can respond effectively. -Minimizes waste and redundancy - When work activities are coordinated around plans, inefficiencies become obvious and can be corrected or eliminated. -Sets the standards for controlling- When managers plan, they develop goals and plans. When they control, they see whether the plans have been carried out and the goals met.

why is managing workforce diversity so important and beneficial

PEOPLE MANAGEMENT - diversity is, after all, about people, both inside and outside the organization. -The people management benefits that organizations get because of their workforce diversity efforts revolve around attracting and retaining a talented workforce. -better use of employee talent -increased quality of team problem-solving efforts -ability to attract and retain employees of diverse backgrounds ORGANIZATIONAL PERFORMANCE - cost savings include reducing employee turnover, absenteeism, and the chance of lawsuits -enhanced problem solving-ability -improved system flexibility STRATEGIC - workforce diversity is a key to extracting the best talent performance, market share, and suppliers from a diverse country and world. -One important strategic benefit is that with a diverse workforce, organizations can better anticipate and respond to changing consumer needs. Diverse employees bring a variety of points of view and approaches to opportunities, which can improve how the organization markets to diverse consumers -increased understanding of the marketplace, which improves ability to better market to diverse consumers -potential to improve sales growth and increase market share -potential source of competitive advantage because of improved innovation efforts -viewed as moral and ethical; the "right" thing to do

Challenges in Managing Diversity

PERSONAL BIAS- these cause us to have preconceived opinions about people or things. Such preconceived opinions can create all kinds of inaccurate judgments and attitudes -bias- a tendency or preference toward a particular perspective or ideology. -"One sided" perspective PREJUDICE - a pre-conceived belief, opinion, or judgment toward a person or a group of people -an outcome of our personal biases -can be baed on all types of diversity (race, gender, ethnicity, age, disability, religion, sexual orientation, or even other personal characteristics) STEREOTYPING- judging a person based on a prejudicial perception of a group to which that person belongs. -ex: Married people are more stable employees than single persons -not all stereotypes are inaccurate. - however, many stereotypes aren't factual and distort our judgment. DISCRIMINATION - when someone acts out their prejudicial attitudes toward people who are the targets of their prejudice. -prejudice and stereotyping can lead to someone treating other who are members of a particular group unequally. GLASS CEILING- the invisible barrier that separates women and minorities from top management positions. -first used in wall street journal in the 1980s -the idea of a "ceiling" means something is blocking upward movement and the idea of "glass" is that whatever's blocking the way isn't immediately apparent. -hard to eliminate

What Causes Stress?

Role demands relate to pressures placed on an employee as a function of the particular role he or she plays in the organization. -Role Conflicts - work expectations that are hard to satisfy. -Role Overload - having more work to accomplish than time permits. -Role Ambiguity - when role expectations are not clearly understood and the employee is not sure what he or she is to do. -Interpersonal demands - pressures created by other employees. Lack of social support from colleagues and poor interpersonal relationships can cause considerable stress, especially among employees with a high social need -Organization structure - excessive rules and an employee's lack of opportunity to participate in decisions that affect him or her -Organizational leadership - the supervisory style of the organization's managers -Some managers create a culture characterized by tension, fear, and anxiety. They establish unrealistic pressures to perform in the short run, impose excessively tight controls, and routinely fire employees who don't measure up. This style of leadership filters down through the organization and affects all employees.

Satisfice

accepting solutions that are "good enough." -They're being rational within the limits (bounds) of their ability to process info.

Organizational Change

any alterations in the people, structure, or technology of an organization. -most managers at one point or another have to change some things in their workplace. -Change Agents- persons who act as catalysts and assume the responsibility for managing the change process -organizational changes often need this person -can be a manager within the organization, but could be a nonmanager—for example, a change specialist from the HR department or even an outside consultant

bounded rationality

decision making that's rational, but limited (bounded) by an individual's ability to process info. Because they can't possibly analyze all info on all alternatives, they SATISFICE rather than maximize. -a more realistic approach to describing how managers make decisions

Planning

defining the organization's goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate work activities. It's concerned with both ends (what) and means (how). -Formal planning --Specific goals covering a specific time period --Written and shared with organizational members to reduce ambiguity and create a common understanding about what needs to be done. Finally, specific plans exist for achieving these goals.

Plans

documents that outline how goals are going to be met - usually include resource allocations, schedules, and other necessary actions to accomplish the goals. - As managers plan, they develop both goals and plans.

External and Internal Forces for Change

external: -changing consumer needs and wants -new governmental laws -changing technology -economic changes Internal: -new organizational strategy -change in composition of workforce -new equipment -changing employee attitudes

Anchoring Effect

fixating on initial info and ignoring subsequent info. -First impressions, ideas, prices, and estimates carry unwarranted weight relative to info received later.

Workforce diversity

the ways in which people in an organization are different from and similar to one another - managers and organizations should view employees as having qualities in common as well as differences that separate them -one of the most popular business topics as well as controversial and least understood topics.