1. Chapter 14: The Organization and You Science 295 Dr. Cahill

2. Structure, policies, procedure, culture  Elements of an organization  There are 5 basic elements which interact to define a company and determine the role of its employees: 1. Strategy – the company’s plan for success 2. Structure – corporate hierarchies 3. Conduits – channels for allocating, controlling and tracking resources 4. Rules and regulations, policies and procedures 5. Social climate/culture – employee’s feelings about the company and behaviors and feelings within the company

3. Structure, policies, procedure, culture  Strategy  The plan that the company has to succeed in achieving its goals  Guides the company’s operations and determines specific tactics  Structure  Outlines the hierarchies within the organization  Determines accountability and authority within its ranks; defines the relationship between the employees  Each level has its own degree of responsibility and authority  Not as important in “mom and pop shops,” but necessary in complex organizations

4. Structure, policies, procedure, culture  Fixed structure  Unity command principle – each employee should be accountable to only one boss (figure 14.2)  Allows clear communication up and down the chain  Each department has several employees at the same level who perform specific tasks  Does not allow for job enlargement and enrichment  Flexible organization (figure 14.3)  Employees have multiple roles which overlap the once separate areas  Suitable for problem solving teams capable of working together to perform tasks

5. Structure, policies, procedure, culture  Conduits  System by which information travels throughout an organization  Official structure provides the channels by which people, money and equipment are properly allocated, controlled and tracked  Rules and guidelines  Policies and procedures govern an organization’s conduct  Policies – medical benefits, retirement plans, paid vacation  Procedures – guidelines by which employees should act

6. Structure, policies, procedure, culture  Company climate and culture  Norms, beliefs, rites, rituals, behaviors and practices of the members of an organization  Social climate and culture have become major determinants of employee happiness  Cultures vary widely today with new work environments of telecommuting, casual work environment and focuses on individuality or team work

7. Structure, policies, procedure, culture  Human system integration  The idea that people expect to have control over the planning and pacing of their work, have decision making responsibilities, and enjoy broadly defined jobs that provide feelings of responsibility and accomplishment  Macroergonomics is a system which recognizes the shift in the value system of the workforce today  Organizations are less formalized  Decision making is more decentralized in that tactical decisions are delegated to lower level workers  Work systems are participatory in nature

8. Structure, policies, procedure, culture  The human is in the center  A good fit between the organization and the employee is necessary for efficiency  The individual is at the center of the organization’s operations because the company would not exist without its employees  Social contracts  The unwritten, but understood relationship between the workers and the organization employing them  Include appropriate pay, secure workplace, health and retirement plans in exchange for reliable, hard work

9. Design for motivational performance  Social climate and structure depend on company design  They both affect the emotional states of employees and how they feel about their company and jobs  Ex. Large, well established advertising agency vs. Small advertising agency just starting out  The individual in an organization  The person is the organization’s most important asset; therefore it is important to find out what influences the employee’s state of mind  Individuals are unique  Assembling individual into a team is a complex task; hard to make sure all personalities work well together  the organization has limited possibilities in hiring employees, so it is better to design tasks to fit the individual

10. Design for motivational performance  APCFB model  A method of explaining why people act the way they do  States that a person’s Assumptions, color the Perceptions of a given event, leading to individual Conclusions which create Feelings and result in Behaviors  Individual behaviors to one common event can be very different  Motivation  The attitude toward attaining a goal  Theories used to explain behavior:  Maslow’s Hierarchy of needs and Alderfer’s ERG theory – both state that individuals continuously strive to meet certain needs which drives behavior  Expectancy theory – an individual’s motivation depends on the difference between what the work environment offers versus what the individual expects

11. Design for motivational performance  Satisfaction  Some theorists believe it is determined within the individual and achieved when physical and physiological needs are met  Others focus more on external factors, such as social environment  Work conditions influence job satisfaction as seen in Herzberg’s 2 factor theory  Stress  Some stress has a positive, driving effect in the workplace  Too much can have negative effects on a person’s physiological and psychological well-being

12. Design for motivational performance  Individuals react differently to stress, but in general, some of the biggest stressors are as follows:  Demanding jobs with high workloads  Lack of control over work processes  Overly complex task  Isolation  Monotonous jobs  Nonsupportive/incompetent supervisors  Technical problems

13. A good place to work  A satisfying job meets physical needs through appropriate income and psychological needs through professional recognition  Social comparison theories  People assess their own feelings of job satisfaction by comparing themselves to other people in similar positions  A positive place to work  One of the US companies which was always one of the “100 Best Companies to Work for” claimed the slogan: “Treat others the way they want to be treated. Strive for mutual respect and for an atmosphere that makes people proud to work here. Provide career opportunities. Say thank you for a job well done.”

14. A good place to work  Quality of life at and off work  Balance between work and life outside a job is critical to the health of the individual  Tight markets with small numbers of employees set up a situation in which employees may be overloaded with work  Technological developments can also lead to overtaxing employees  Stressed employees leads to reduced productivity and loss of staff  To avoid overwhelming employees it is important to limit working hours, allow vacation time, flexible schedules and saabbaticals

15. Summary  People affect the way an organization functions, and vice versa  Good fit among individuals, work and organization is essential for the company to run smoothly  Motivating employees is complex but necessary for the success of an organization  Today’s employees expect recognition for their performance  According to human-system integration, employees expect:  Better designed jobs  More freedom at work  Greater roles in decision making  Pleasing environments  Amiable colleagues

16. Summary  An organization must be human centered:  Body movement and thinking on the job stimulate alertness  A complex job enriches skill and motivation and generates satisfaction when completed  Flexibility and freedom of choice in task execution results in efficiency and productivity  Opportunities for decision making provide a feeling of responsibility that leads to performance-directed motivation and satisfaction  The organization that promotes participation enhances its members’ self development and self realization and furthers its own success