Needed: People-Centered Managers and Workplaces

Needed: People-Centered Managers and Workplaces
Learning Objectives Identify at least four of Pfeffer’s people-centered practices, and define the term management. Contrast McGregor’s Theory X and Theory Y assumptions about employees. Explain the managerial significance of Deming’s rule, and identify the four principles of total quality management (TQM). Contrast human capital and social capital, and explain why we need to build both. Explain the impact of the positive psychology movement on the field of OB. Define the term E-business, and specify five ways the Internet is affecting the management of people at work. Chapter One

Pfeffer’s Seven People-Centered Practices
1-1 Job security Careful hiring Power to the people Generous pay for performance Lots of training Less emphasis on status Trust building McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc. All rights reserved.

The 4-P Cycle of Continuous Improvement
1-2 Figure 1-1 People (Skilled, motivated people who can handle change. Less stress.) Products (Satisfied customers because of better quality goods/services. Job creation.) Processes (Faster, more flexible, leaner, and ethical organizational processes. Organizational learning.) Productivity (Less wasteful, more efficient use of all resources.) McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: The Effective Manager’s Skill Profile
1-3 Clarifies goals and objectives for everyone involved. Encourages participation, upward communication, and suggestions. Plans and organizes for an orderly workflow Has technical and administrative expertise to answer organization-related questions. Facilitates work through team building, training, coaching, and support. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: The Effective Manager’s Skill Profile (Cont.)
1-4 Provides feedback honestly and constructively. Keeps things moving by relying on schedules, deadlines, and helpful reminders. Controls details without being overbearing. Applies reasonable pressure for goal accomplishment. Empowers and delegates key duties to others while maintaining goal clarity and commitment. Recognizes good performance with rewards and positive reinforcement. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc. All rights reserved.

Evolution of 21st Century Managers
1-5 Table 1-1 Past Managers Future Managers Facilitator, team member, teacher, advocate, sponsor, coach, partner Order giver, privileged elite, manipulator, controller Primary role Continuous life-long learning, generalist with multiple specialties Periodic learning, narrow specialist Learning and knowledge Skills, results Time, effort, rank Compensation criteria Multicultural, multilingual Monocultural, monolingual Cultural orientation McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc. All rights reserved.

Evolution of 21st Century Managers (Cont.)
1-6 Table 1-1 Past Managers Future Managers Knowledge (technical and interpersonal) Formal authority Primary source of influence Primary resource Potential problem View of people Multidirectional Vertical Primary communication-pattern Broad-based input for joint decisions Limited input for individual decisions Decision-making style McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc. All rights reserved.

Evolution of 21st Century Managers (Cont.)
1-7 Table 1-1 Past Managers Future Managers Forethought Afterthought Ethical considerations Cooperative (win-win) Competitive (win-lose) Nature of interpersonal relationships Share and broaden access Hoard and restrict access Handling of power and key information Facilitate Resist Approach to change McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc. All rights reserved.

McGregor’s Theory X and Theory Y
1-8 Theory X Most people dislike work Most people must be coerced and threatened before they will work Most people actually prefer to be directed Theory Y Work is a natural activity People are capable of self-direction and self-control Rewards cause people to be more committed to organizational goals The typical employee can learn to accept and seek responsibility People are imaginative, creative and have ingenuity McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc. All rights reserved.

What is TQM? 1-9 Total Quality Management: An organizational culture dedicated to training, continuous improvement, and customer satisfaction Principles of TQM Do it right the first time to eliminate costly rework. Listen to and learn from customers and employees. Make continuous improvement an everyday matter. Build teamwork, trust and mutual respect. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc. All rights reserved.

The Age of Human and Social Capital
1-10 Human Capital The productive potential of one’s knowledge and actions Social capital The productive potential of strong, trusting, and cooperative relationships McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc. All rights reserved.

Organizational Learning
The Strategic Importance and Dimensions of Human and Social Capital 1-11 Figure 1-2 Strategic Assumption Individual Human Capital Social Capital Organizational Learning McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc. All rights reserved.

Building Human Capital
Skills & Best Practices: How to Build Human and Social Capital 1-12 Building Human Capital Program or activity Company “Education is foremost at this construction company, where all employees—called ‘partners’—are allowed 100% reimbursement of tuition, fees, and books at any state-supported college.” TDIndustries Dallas 1,393 employees “The brokerage…spends $75,000 per worker on training, and just built AGEU, a 20,000 square foot education center for new financial consultants” A.G. Edwards St. Louis 16,482 employees McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Building Social Capital
Skills & Best Practices: How to Build Human and Social Capital (Cont.) 1-13 Building Social Capital Program or activity Company “The software giant…matches charity donations up to $12,000.” Microsoft Redmond, WA 36,665 employees “The 153-year-old travel and financial services firm…recently reinstated 12-week sabbaticals [so] staff can take time off to work at nonprofits.” American Express New York 43,477 employees McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Building Social Capital
Skills & Best Practices: How to Build Human and Social Capital (Cont.) 1-14 Building Social Capital Program or activity Company “The maker of rugged footwear gives employees up to 40 hours a year of paid time off for community service.” Timberland Stratham, NH 2,116 employees McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Positive Organizational Behavior
1-15 Positive Organizational Behavior (POB) the study and improvement of employees’ positive attributes and capabilities McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

C onfidence/self-efficacy H ope O ptimism S ubjective well-being
Luthans’s CHOSE Model Of Key POB Dimensions 1-16 Table 1-3 C onfidence/self-efficacy H ope O ptimism S ubjective well-being E motional intelligence McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

E-business Implications for OB
1-17 E-business running the entire business via the Internet E-Management Fast paced; Virtual teams, Networking skills E-communication use/abuse; Telecommuting promised and drawbacks E-leadership Involves electronically-mediated interactions in combination with traditional face-to-face Goal setting and feedback Web-based goal-setting/evaluation; Risk of over control? Organizational structure Virtual teams and organizations; Lack of trust and loyalty in “faceless” organizations? Job design “Sticky” work settings; Unrealistic expectations? McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

E-business Implications for OB (Cont.)
1-18 Decision making – Less time to make more decisions; Information overload; Empowerment and participative decision making Knowledge management – E-training; E-learning; distance learning: Asynchronous vs. synchronous Speed, conflict, and stress – Does relentless speed equal burnout? Change and resistance to change – Stop the World, I want to get off! Constant change equals conflict Ethics – Net slaves (low pay with unrealistic promises of riches); Electronic monitoring; Repetitive motion injuries; Abuse of part-timers (no benefits, no job security); Privacy issues McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Organizational Culture, Socialization, and Mentoring
Learning Objectives Discuss the layers and functions of organizational culture. Describe the three general types of organizational culture and their associated normative beliefs. Summarize the methods used by organizations to embed their cultures. Describe the three phases in Feldman’s model of organizational socialization. Discuss the various socialization tactics used to socialize employees. Explain the four types of developmental networks derived from a developmental network model of mentoring Chapter Two

Organizational Culture
2-1 Organizational culture shared values and beliefs that underlie a company’s identity. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

A Conceptual Framework for Understanding Organizational Culture
2-2 Figure 2-1 Antecedents Organizational Culture Organizational structure and practices Group and social processes Collective attitudes and behavior Organizational outcomes McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Layers of Organizational Culture
2-3 Observable Artifacts Espoused Values Basic Underlying Assumptions Source: Adapted from E H Schein, Organizational Culture and Leadership, 2nd ed (San Francisco: Jossey-Bass, 1992), p 17. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Four Functions of Organizational Culture
2-4 Figure 2-2 Organizational culture Sense-making device identity Social system stability Collective commitment McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Types of Organizational Culture
2-5 Table 2-1 Organizational Characteristics Normative Beliefs General Types of Culture Goal and achievement oriented Achievement Constructive Value self-development and creativity Self-actualizing Constructive Participative, employee-centered, and supportive Humanistic-encouraging Constructive High priority on constructive interpersonal relationships, and focus on work group satisfaction Affiliative Constructive McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Types of Organizational Culture (Cont.)
2-6 Table 2-1 Organizational Characteristics Normative Beliefs General Types of Culture Avoid conflict, strive to be liked by others and approval oriented Approval Passive-defensive Conservative, bureaucratic and people follow the rules Conventional Passive-defensive Nonparticipative, centralized decision-making, and employees do what they’re told Dependent Passive-defensive Negative reward system and avoid accountability Avoidance Passive-defensive McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Types of Organizational Culture (Cont.)
2-7 Table 2-1 Organizational Characteristics Normative Beliefs General Types of Culture Confrontation and negativism awarded Oppositional Aggressive-defensive Nonparticipative, take charge of subordinates and responsive to superiors Power Aggressive-defensive Winning is valued and a win-lose approach is used Competitive Aggressive-defensive Perfectionistic, persistent and hard-working Perfectionistic Aggressive-defensive McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Embedding Organizational Culture
2-8 Formal statements of organizational philosophy, mission, vision, values, and materials used for recruiting, selection and socialization The design of physical space, work environments, and buildings Slogans, language, acronyms, and sayings Deliberate role modeling, training programs, teaching and coaching by managers and supervisors Explicit rewards, status symbols (e.g., titles), and promotion criteria Stories, legends, and myths about key people and events McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Embedding Organizational Culture (Cont.)
2-9 The organizational activities, processes, or outcomes that leaders pay attention to, measure, and control Leader reactions to critical incidents and organizational crises The workflow and organizational structure Organizational systems and procedures Organizational goals and the associated criteria used for recruitment, selection, development, promotion, layoffs, and retirement of people McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Perceptual and Social Processes
A Model of Organizational Socialization 2-10 Figure 2-3 Perceptual and Social Processes Phases Anticipatory Socialization Learning that occurs prior to joining the organization Anticipating realities about the organization and the new job Anticipating organization’s needs for one’s skills and abilities Anticipating organization’s sensitivity to one’s needs and values McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Perception and Social Processes
A Model of Organizational Socialization (Cont.) 2-11 Figure 2-3 Perception and Social Processes Phases 2. Encounter Values, skills and attitudes start to shift as new recruit discovers what the organization is truly like Managing lifestyle- versus-work conflicts Managing intergroup role conflicts Seeking role definition and clarity Becoming familiar with task and group dynamics McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Perception and Social Processes
A Model of Organizational Socialization (Cont.) 2-12 Figure 2-3 Perception and Social Processes Phases 3. Change and acquisition Recruit masters skills and roles and adjusts to work group’s values and norms Competing role demands are resolved Critical tasks are mastered Group norms and values are internalized McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

A Model of Organizational Socialization (Cont.)
2-13 Figure 2-3 Phases 1. Anticipatory socialization 2. Encounter 3. Change and acquisition Outsider Socialized Insider Behavioral Outcomes Performs role assignments Remains with organization Spontaneously innovates and cooperates Affective Outcomes Generally satisfied Internally motivated to work High job involvement McGraw-Hill McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. © The McGraw-Hill Companies, Inc. All rights reserved.

Socialization Tactics
2-14 Table 2-2 Description Tactic Collective: consists of grouping newcomers and exposing them to a common set of experiences; Individual: exposing each individually to a set of unique experiences Collective vs. Individual Formal: Segregating newcomer from regular organization members; Informal: not distinguishing between newcomer and experienced members Formal vs. Informal Sequential: fixed progression of steps that culminate in the new role; Random: ambiguous or dynamic progression Sequential vs. Random McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Socialization Tactics (Cont.)
2-15 Table 2-2 Description Tactic Fixed: provides a timetable for the assumption of the role; Variable: does not provide timetable Fixed vs. Variable Serial: newcomer is socialized by an experienced member; Disjunctive: does not use a role model Serial vs. Disjunctive Investiture: affirmation of newcomer’s incoming global and specific role identities and attributes; Divestiture: denial and stripping away of the newcomer’s existing sense of self to rebuild in the organization’s image Investiture vs. Divestiture McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Mentoring and Functions of Mentoring
2-16 Mentoring is the process of forming and maintaining developmental relationships between a mentor and a junior person Functions of Mentoring Career Functions - Sponsorship - Exposure-and-visibility - Coaching - Protection - Challenging assignments Psychosocial Functions - Role modeling - Acceptance-and-confirmation - Counseling - Friendship McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Developmental relationship strength
Developmental Networks Associated with Mentoring 2-17 Figure 2-4 Developmental relationship strength Strong ties Weak ties •D2 •D2 Low range D1• D1• •P •P Receptive Traditional Developmental relationship diversity D1• •D2 D1• •D2 • High range • P P D3• •D4 D3• •D4 Opportunistic Entrepreneurial Source: M Higgins and K Kram, “Reconceptualizing Mentoring at Work: A Developmental Network Perspective,” Academy of Management Review, April 2001, p. 270 Key: D, developer; P, protégé. McGraw-Hill McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. © The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Building an Effective Mentoring Network
2-18 Become the perfect protégé Engage in 360-degree networking Commit to assessing, building, and adjusting the mentor network Develop diverse, synergistic connections Realize that change is inevitable and that all good things come to an end McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Developing Global Managers
Learning Objectives Define ethnocentrism and explain what Hofstede concluded about applying American management theories in other countries. Identify and describe the nine cultural dimensions from the GLOBE project. Draw a distinction between individualistic cultures and collectivist cultures. Demonstrate your knowledge of these two distinctions: high-context versus low-context cultures and monochronic versus polychronic cultures. Explain what the GLOBE project has taught us about leadership. Explain why US managers have a comparatively high failure rate in foreign assignments, and identify an OB trouble spot for each stage of the foreign assignment cycle Chapter Three

Organizational Culture Organizational Behavior
Cultural Influences on Organizational Behavior 3-1 Figure 3-1 Organizational Culture Economic/ technological setting Political/ legal setting Ethnic background Religion Societal culture Customs Language Personal values/ethics Attitudes Assumptions Expectations Organizational Behavior McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Ethnocentrism 3-2 Ethnocentrism belief that one’s native country, culture, language, and behavior are superior. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Becoming Global Manager Material
3-3 Global Perspective: Focus on global business Cultural Responsiveness: Become familiar with many cultures Appreciate Cultural Synergies: Learn multicultural dynamics Cultural Adaptability: Live and work effectively in different cultures Cross-Cultural Communication: Daily cross-cultural interaction Cross-Cultural Collaboration: Multicultural teamwork Acquire Broad Foreign Experience: Series of foreign career assignments McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Key Cultural Dimensions
3-4 Individualistic Cultures: “I” and “me” cultures where individual freedom and choice are given priority. Collectivist Cultures: “We” and “us” cultures where shared goals and interests rank higher than individual desires and goals. High-Context Cultures: primary meaning derived from nonverbal cues. Low-Context Cultures: primary meaning derived from written and spoken words. Monochronic time: preference for doing one thing at a time because time is limited, precisely segmented, and schedule driven. Polychronic time: preference for doing more than one thing at a time because time is flexible and multidimensional. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Nine Basic Cultural Dimensions from
the GLOBE Project 3-5 Power distance Uncertainty avoidance Societal collectivism In-group collectivism Gender egalitarianism Assertiveness Future orientation Performance orientation Humane orientation McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Countries Ranking Highest and Lowest on the GLOBE Cultural Dimensions
3-6 Table 3-1 Dimensions Highest Lowest Denmark, Netherlands, South Africa—black sample, Israel, Costa Rica Morocco, Argentina, Thailand, Spain, Russia Power distance Russia, Hungary, Bolivia, Greece, Venezuela Switzerland, Sweden, German—former West, Denmark, Australia Uncertainty Avoidance Greece, Hungary, Germany—former East, Argentina, Italy Sweden, Korea, Japan, Singapore, Denmark Societal Collectivism McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Countries Ranking Highest and Lowest
on the GLOBE Cultural Dimensions (Cont.) 3-7 Table 3-1 Dimensions Highest Lowest Denmark, Sweden, New Zealand, Netherlands, Finland Iran, India, Morocco, China, Egypt In-group collectivism South Korea, Egypt, Morocco, India, China Hungary, Poland, Slovenia, Denmark, Sweden Gender egalitarianism Sweden, New Zealand, Switzerland, Japan, Kuwait Germany—former East, Austria, Greece, US, Spain Assertiveness McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Countries Ranking Highest and Lowest
on the GLOBE Cultural Dimensions (Cont.) 3-8 Table 3-1 Dimensions Highest Lowest Russia, Argentina, Poland, Italy, Kuwait Singapore, Switzerland, Netherlands, Canada—English speaking, Denmark Future orientation Russia, Argentina, Greece, Venezuela, Italy Singapore, Hong Kong, New Zealand, Taiwan, US Performance orientation Germany—former West, Spain, France, Singapore, Brazil Philippines, Ireland, Malaysia, Egypt, Indonesia Humane orientation McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Leadership Attributes Universally Liked,
Disliked, and Most Strongly Disputed 3-9 Table 3-2 Leader attributes universally liked Leader attributes universally disliked Most disputed leader attributes Trustworthy Noncooperative Subdued Dynamic Irritable Intragroup conflict avoider Motive arouser Egocentric Cunning Decisive Ruthless Sensitive Intelligent Dictatorial Provacateaur Dependable Loner/self-centered Self-effacing Plans ahead Willful Excellence oriented Team builder Encouraging McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Reasons why US Expatriates Fail in
Foreign Assignments 3-10 Manager’s spouse cannot adjust to new physical or cultural surroundings Manager cannot adapt to new physical or cultural surroundings Family problems Manager is emotionally immature Manager cannot cope with foreign duties Manager is not technically competent Manager lacks proper motivation for foreign assignment McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Tips for
Women (and Men) for Landing Foreign Assignment 3-11 While still in school, pursue foreign study opportunities and become fluent in one or more foreign languages Starting with the very first job interview, clearly state your desire for a foreign assignment Become very knowledgeable about foreign countries where you would like to work Network with expatriates (both men and women) in your company to uncover foreign assignment opportunities McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Tips for
Women (and Men) for Landing Foreign Assignment (Cont.) 3-12 Make sure your family fully supports a foreign assignment Get your boss’s support by building trust and a strong working relationship Be visible: make sure upper management knows about your relevant accomplishments and unique strengths Stay informed about your company’s international strategies and programs Polish your cross-cultural communication skills daily with foreign-born co-workers McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

The Foreign Assignment Cycle
3-13 Figure 3-2 Home Country Experiences Foreign Country Experiences Selection and training Arrival and adjustment Reassignment Returning Home and adjusting Settling in and acculturating McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Understanding Social Perception and Managing Diversity
Learning Objectives Describe perception in terms of the social information processing model. Identify and briefly explain four managerial implications for social perception. Explain, according to Kelley’s model, how external and internal causal attributions are formulated. Demonstrate your familiarity with the demographic trends that are creating an increasingly diverse workforce. Identify the barriers and challenges to managing diversity. Discuss the organizational practices used to manage diversity identified by Ann Morrison Chapter Four

Perception Defined 4-1 Perception is the process of interpreting one’s environment. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

A Social Information Processing
Model of Perception 4-2 Figure 4-1 Stage 1 Selective Attention/ Comprehension Stage 2 Encoding and Simplification A Competing environmental stimuli: * People * Events * Objects B Interpretation and categorization A C C D E F F McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

A Social Information Processing Model of Perception (Cont.)
4-3 Figure 4-1 Stage 3 Storage and Retention Stage 4 Retrieval and Response Memory Judgments and decisions C McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Social Information Processing Model
Of Perception 4-4 Stage 1: Selective Attention/Comprehension - Attention is the process of becoming aware of something or someone - People pay attention to salient stimuli Stage 2: Encoding and Simplification - Encoding is the process of interpreting environmental stimuli by using information contained in cognitive categories and schemata - The same information can be interpreted differently by people due to individual differences McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Social Information Processing Model
of Perception (Cont.) 4-5 Stage 3: Storage and Retention - Encoded information or stimuli is sent to long- term memory - Long-term memory is composed of three compartments containing categories of information about events, semantic materials, and people Stage 4: Retrieval and Response - Information is retrieved from memory when people make judgments and decisions McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Stereotypes 4-6 A Stereotype is a belief about the characteristics of a group McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Commonly Found Perceptual Errors
4-7 Table 4-1 Perceptual Error Description A rater forms an overall impression about an object and then uses the impression to bias ratings about the object. Halo A personal characteristic that leads an individual to consistently evaluate other people or objects in an extremely positive fashion. Leniency The tendency to avoid all extreme judgments and rate people and objects as average or neutral. Central Tendency McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Perceptual Errors (Cont.)
Commonly Found Perceptual Errors (Cont.) 4-8 Table 4-1 Perceptual Error Description The tendency to remember recent information. If the recent information is negative, the person or object is evaluated negatively. Recency Effects The tendency to evaluate people or objects by comparing them with characteristics of recently observed people or objects. Contrast Effects McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Kelley’s Model of Attribution
4-9 Basic Premise: An attribution is based on the consensus, distinctiveness, and consistency of the observed behavior. Consensus - Involves comparing an individual’s behavior with that of his or her peers. - High consistency indicates an individual is different from peers. Distinctiveness - Involves comparing a person’s behavior or accomplishments on one task with the behavior or accomplishments from other tasks Highly distinctive behavior or results represents a situation where the current behavior or result is significantly different from typical behavior or results on other tasks. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Kelley’s Model of Attribution (Cont.)
4-10 Consistency - Involves comparing a person’s behavior or accomplishments on a given task over time. - High consistency implies that a person performs a certain task the same, time after time. Predictions - Internal or personal attributions are made when a behavior is associated with low consensus and distinctiveness, and high consistency External or environmental attributions are made when a behavior is related with high consensus and distinctiveness, and low consistency. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Consensus Low High A B C D E A B C D E People People
4-11 Figure 4-2 Low High Individual Performance Individual Performance A B C D E A B C D E People People Source: KA Brown, “Explaining Group Poor Performance: an Attributional Analysis,” Academy of Management Review, January 1984, p 56. Used with permission. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Consensus High Low A B C D E A B C D E Tasks Tasks
4-12 Figure 4-2 High Low Individual Performance Individual Performance A B C D E A B C D E Tasks Tasks Source: KA Brown, “Explaining Group Poor Performance: an Attributional Analysis,” Academy of Management Review, January 1984, p 56. Used with permission. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Consensus Low High Time Time Individual Performance
4-13 Figure 4-2 Low High Individual Performance Individual Performance Time Time Source: KA Brown, “Explaining Group Poor Performance: an Attributional Analysis,” Academy of Management Review, January 1984, p 56. Used with permission. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Attributional Tendencies
4-14 Fundamental attribution bias- ignoring environment factors that affect behavior Self-serving bias- taking more personal responsibility for success than failure McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

The Four Layers of Diversity
4-15 Figure 4-3 Organizational Dimensions Functional Level/ Classification External Dimensions* Geographic Location Marital Status Work Content/ Field Mgmt. Status Internal Dimensions* Income Age Personality Parental Status Personal Habits Race Recreational Habits Division/ Dept./ Unit/ Group Appearance Sexual Orientation Union Affiliation Ethnicity Physical Ability Work Experience Religion Educational Background Work Location Seniority Source: L Gardenswartz and A Rowe, Diverse Teams at Work: Capitalizing on the Power of Diversity (New York: McGraw-Hill, 1994), p. 33 McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Projected Entrants and Departures in the US
Workforce from 2000 to 2010 4-16 Table 4-2 Percent Entrants Percent Leavers Total Men Women 100 49.6 50.4 55.4 44.6 White (Non-Hispanic) 60.6 77.4 African-American 13.7 11.8 Hispanic 17.9 7.2 Asian and Other Races 7.8 3.6 McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Barriers and Challenges to
Managing Diversity 4-17 Inaccurate stereotypes and prejudice Ethnocentrism Poor career planning An unsupportive and hostile working environment for diverse employees Lack of political savvy on the part of diverse employees Difficulty in balancing career and family issues Fears of reverse discrimination Diversity is not seen as an organizational priority The need to revamp the organization’s performance appraisal and reward system Resistance to change McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Common Diversity Practices: Accountability Practices
4-18 Table 4-3 Top management’s personal intervention Internal advocacy groups Emphasis on EEO statistics, profiles Inclusion of diversity in performance evaluation goals, ratings Inclusion of diversity in promotion, decision criteria Inclusion of diversity in management succession planning Work and family policies Policies against racism, sexism Internal audit or attitude survey Active AA/EEO committee, office McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Common Diversity Practices: Development Practices
4-19 Table 4-3 Diversity training programs Networks and support groups Development programs for all high-potential managers Informal networking activities Job rotation Formal mentoring program Informal mentoring program Entry development programs for all high-potential new hires Internal training (such as personal safety or language) Recognition events, awards McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Common Diversity Practices: Recruitment Practices
4-20 Table 4-3 Targeted recruitment of non-managers Key outside hires Extensive public exposure on diversity (AA) Corporate image as liberal, progressive, or benevolent Partnerships with educational institutions Recruitment incentives such as cash supplements Internships (such as INROADS) Publications or PR products that highlight diversity Targeted recruitment of managers Partnerships with nontraditional groups McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Appreciating Individual Differences: Self-Concept, Personality,
Emotions Learning Objectives Distinguish between self-esteem and self-efficacy. Contrast high and low self-monitoring individuals, and describe resulting problems each may have. Explain the social learning model of self-management. Identify and describe the Big Five personality dimensions, specify which one is correlated most strongly with job performance, and describe the proactive personality. Explain the difference between an internal and external locus of control. Explain the concepts of emotional contagion and emotional labor, and identify the four components of emotional intelligence Chapter Five

An OB Model for Studying Individual Differences
5-1 Figure 5-1 The Unique Individual Forms of Self- Expression Personality traits Self-Management Self Concept Self-esteem Self-efficacy Self-monitoring Attitudes Abilities Emotions McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

From Self-Concept to Self-Management
5-2 Self-concept is a person’s self-perception as a physical, social, spiritual being. Cognitions are a person’s knowledge, opinions, or beliefs. Self-esteem is one’s overall self-evaluation. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: How to Build
Self-Esteem in Yourself and Others 5-3 Live consciously Be self-accepting Take personal responsibility Be self-assertive Live purposefully Have personal integrity McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Self-Efficacy (“I can do that.”)
5-4 Self-efficacy is the belief in one’s ability to do a task McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

“I don’t think I can get the job done.”
Self-Efficacy Beliefs Pave the Way for Success or Failure 5-5 Figure 5-2 Sources of Self-Efficacy Beliefs Feedback Results Behavior Patterns Prior experience High “I know I can do this job Success Behavior models Self-efficacy Beliefs Persuasion From Others Behavior Patterns Low “I don’t think I can get the job done.” Assessment Of Physical Emotional State Failure McGraw-Hill McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc. All rights reserved.

Self-Monitoring 5-6 Self-monitoring is observing one’s own behavior and adapting it to the situation McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

A Social Learning Model of
Self-Management 5-7 Figure 5-3 Person (Psychological self) Behavior Situational cues Consequences McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Covey’s Seven Habits: An Agenda for Managerial Self-Improvement
5-8 Table 5-1 Be proactive Being with the end in mind Put first things first Think win/win Seek first to understand, then to be understood Synergize Sharpen the saw McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

The Big Five Personality Dimensions
5-9 Table 5-2 Personality Dimension Characteristics Outgoing, talkative, sociable, assertive Extraversion Trusting, good-natured, cooperative, softhearted Agreeableness Dependable, responsible, achievement oriented, persistent Conscientiousness Relaxed, secure, unworried Emotional stability Intellectual, imaginative, curious, broad-minded Openness to experience McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Proactive Personality
5-10 A Proactive Personality is an action-oriented person who shows initiative and perseveres to change things. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Locus of Control 5-11 Internal locus of control: belief that one controls key events and consequences in one’s life. External locus of control: One’s life outcomes attributed to environmental factors such as luck or fate. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: How Lucky People Make Their Own Luck
5-12 Maximize chance opportunities Listen to your lucky hunches Expect good fortune Turn bad luck into good McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Seven Major Mental Abilities
5-13 Table 5-3 Ability Description Understanding what words mean and readily comprehending what is read Verbal comprehension Ability to produce isolated words that fulfill symbolic or structural requirements Word fluency Ability to make quick and accurate arithmetic computations such as adding and subtracting Numerical Able to perceive spatial patterns and to visualize how geometric shapes would look if transformed in shape and position Spatial McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Seven Major Mental Abilities (Cont.)
5-14 Table 5-3 Ability Description Having good memory for paired words, symbols, lists of numbers, or other associated items Memory Ability to perceive figures, identify similarities and differences, and carry out tasks involving visual perception Perceptual speed Ability to reason from specifics to general conclusions Inductive reasoning McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Positive and Negative Emotions
5-15 Negative emotions (Goal incongruent): - Anger - Fright/anxiety - Guilt/shame - Sadness - Envy/jealousy - Disgust Positive emotions (Goal congruent) - Happiness/joy - Pride - Love/affection - Relief McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Emotional Intelligence
5-16 Emotional Intelligence is the ability to manage oneself and interact with others in mature and constructive ways McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: How to Develop
Personal and Social Competence Through Emotional Intelligence 5-17 Personal Competence Self-Awareness Emotional self-awareness Accurate self-assessment Self-confidence Self-Management Emotional self-control Transparency Adaptability Achievement Initiative Optimism Social Competence Social Awareness Empathy Organizational awareness Service Relationship Management Inspirational leadership Influence Developing others Change catalyst Conflict management Building bonds Teamwork and collaboration McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Motivation I: Needs, Job Design Intrinsic Motivation, and Satisfaction
Learning Objectives Discuss the job performance model of motivation. Contrast Maslow’s and McClelland’s need theories. Describe the mechanistic, motivational, biological, and perpetual-motor approaches to job design. Review the four intrinsic rewards underlying intrinsic motivation and discuss how managers can cultivate intrinsic motivation in others. Discuss the causes and consequences of job satisfaction. Critique the four hypotheses that explain the nature of work-family relationships. Chapter Six

A Job Performance Model of Motivation
6-2 Figure 6-1 Individual Inputs Skills Ability, Job knowledge Dispositions & Traits Emotions, Moods, & Affect Beliefs & Values Motivational Processes Arousal Attention Intensity & & Direction Persistence Motivated Behaviors Job Context Physical Environment Task Design Rewards & Reinforcement Supervisory Support & Coaching Social Norms Organizational Culture Enable, Limit McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Motivational Processes
A Job Performance Model of Motivation (Cont.) 6-3 Figure 6-1 Skills Individual Inputs Motivated Behaviors Focus: Direction, What we do Intensity: Effort, how hard we try Quality: Task strategies, the way we do it Duration: Persistence, how long we stick to it Motivational Processes Performance Job Context Enable, Limit McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Needs Theories of Motivation
6-4 Needs: Physiological or psychological deficiencies that arouse behavior. Maslow’s Need Hierarchy Theory: Motivation is a function of five basic needs- physiological, safety, love, esteem, and self-actualization. McClelland’s Need Theory: The needs for achievement, affiliation, and power affect behavior. McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

McClelland’s Need Theory
6-5 Need for achievement: Desire to accomplish something difficult. Need for affiliation: Desire to spend time in social relationships and activities. Need for power: Desire to Influence, coach, teach, or encourage others to achieve. McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Motivating Employees Through
Job Design 6-6 1. The Mechanistic Approach focuses on identifying the most efficient way to perform a job. Employees are trained and rewarded to perform their jobs accordingly. Motivational Approaches these techniques (job enlargement, job rotation, job enrichment, and job characteristics model) attempt to improve employees’ affective and attitudinal reactions and behavioral outcomes. 3. Biological and Perceptual- Motor Approaches Biological techniques focus on reducing employees’ physical strain, effort, fatigue, and health complaints. The Perceptual-Motor Approach emphasizes the reliability of work outcomes by examining error rates, accidents, and workers’ feedback about facilities and equipment. McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Herzberg’s Motivator-Hygiene Model
6-7 Figure 6-2 No Satisfaction Satisfaction Jobs that do not Jobs offering offer achievement, achievement, recognition, recognition, stimulating work, stimulating work, responsibility, responsibility, and advancement. and advancement. Motivators McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Herzberg’s Motivator-Hygiene
Model (Cont.) 6-8 Figure 6-2 Dissatisfaction No Dissatisfaction Jobs with poor Jobs with good company policies company policies and administration, and administration, technical supervision, technical supervision, salary, interpersonal salary, interpersonal relationships with relationships with supervisors, and supervisors, and working conditions working conditions. Hygiene Factors McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

The Job Characteristics Model
6-9 Figure 6-3 Core job characteristics Skill variety Task identity Task significance Autonomy Feedback from job Critical psychological tastes Experienced meaningfulness of the work responsibility for outcomes of the work. Knowledge of the actual results of the work activities Outcomes High intrinsic work motivation High growth satisfaction High general job High work effectiveness Moderators Knowledge and skill Growth need strength Context satisfactions McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Steps for
Applying the Job Characteristics Model 6-10 Diagnose the level of employee motivation and job satisfaction and consider redesigning jobs when motivation ranges from low to moderately high. Determine whether job redesign is appropriate in a given context. Redesign jobs by including employees’ input. McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Intrinsic and Extrinsic Motivation
6-11 Intrinsic Motivation: motivation caused by positive internal feelings. Extrinsic Motivation: motivation caused by the desire to attain specific outcomes. McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Accomplishment rewards
A Model of Intrinsic Motivation 6-12 Figure 6-5 Opportunity rewards Accomplishment rewards Sense of choice Sense of competence Sense of meaningfulness Sense of progress From task activities From task purpose McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Job Satisfaction Defined
6-13 Job satisfaction: an affective or emotional response to one’s job McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

The Causes of Job Satisfaction
6-14 Need fulfillment: satisfaction is determined by the extent to which the characteristics of a job allow an individual to fulfill his or her needs Discrepancies: satisfaction is a result of met expectations Value attainment: satisfaction results from the perception that a job allows for fulfillment of individual’s important work values Equity: satisfaction: is a function of how “fairly” an individual is treated at work Dispositional/Genetic Components: satisfaction is partly a function of both personal traits and genetic factors McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Correlates of Job Satisfaction
6-15 Table 6-1 Direction of Relationship Strength of Relationship Variables Related with Satisfaction Positive Moderate Organizational citizenship behavior Job involvement Motivation Strong Organizational Commitment Moderate Negative Pro-union voting Strong Perceived Stress Heart disease Turnover Weak Tardiness Absenteeism Moderate Positive Mental Health Life satisfaction Job performance McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Telltale Signs
You Should Look for Another Job 6-16 Current job’s requirements aren’t a good match with your best skills. Job doesn’t adequately meet your needs in areas you value, such as work-family balance, work location and compensation. Requests for advancement or new opportunities are consistently ignored or only half met. Is work making you miserable? Family and friends tell you that your job has changed you for the worse. Your job ranks low on a “joy and meaning” scale. Your standing in the office has been diminished—for example, key clients or vendors no longer deal with you. McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Hypotheses Regarding Work-Family
Relationships 6-17 Compensation Effect Segmentation Hypothesis Spillover Model Work-Family Conflict McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Expectancy, and Goal Setting
Motivation II: Equity, Expectancy, and Goal Setting Learning Objectives Discuss the role of perceived inequity in employee motivation. Describe the practical lessons derived from equity theory. Explain Vroom’s expectancy theory. Describe the practical implications of expectancy theory. Identify five practical lessons to be learned from goal-setting research. Specify issues that should be addressed before implementing a motivational program. Chapter Seven

Negative and Positive Inequity
7-1 Figure 7-1 A. An Equitable Situation Other Self $2 1 hour = $2 per hour $4 2 hours = $2 per hour McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Negative and Positive Inequity (Cont.)
7-2 Figure 7-1 $2 1 hour = $2 per hour $3 = $3 per hour B. Negative Inequity Self Other McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Negative and Positive Inequity (Cont.)
7-3 Figure 7-1 $2 1 hour = $1 per hour C. Positive Inequity $3 = $3 per hour Self Other McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Equity Sensitivity 7-4 Equity Sensitivity is an individual’s tolerance for negative and positive equity. Benevolents Sensitives Entitleds McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Organizational Justice
7-5 Distributive Justice: the perceived fairness of how resources and rewards are distributed. Procedural Justice: the perceived fairness of the processes and procedures used to make allocation decisions. Interactional Justice: extent to which people feel fairly treated when procedures are implemented. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Vroom’s Expectancy Theory Concepts
7-6 Expectancy: Belief that effort leads to a specific level of performance Instrumentality: A performance  outcome perception. Valence: The Value of a reward or outcome McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Managerial Implications of
Expectancy Theory 7-7 Table 7-1 Determine the outcomes employees value Identify good performance so appropriate behavior can be rewarded Make sure employees can achieve targeted levels of performance Link desired outcomes to targeted performance levels Make sure changes in outcomes are large enough to motivate high effort Monitor the reward system for inequalities McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Organizational Implications of
Expectancy Theory 7-8 Table 7-1 Reward people for desired performance and do not keep pay decisions secret Design challenging jobs Tie some rewards to group accomplishments to build teamwork and encourage cooperation Reward managers for creating, monitoring, and maintaining expectancies, instrumentalities, and outcomes that lead to high effort and goal attainment Monitor employee motivation through interviews or anonymous questionnaires Accommodate individual differences by building flexibility into the motivation program McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Four Prerequisites to Linking Performances and Rewards
7-9 Managers need to develop and communicate performance standards to employees. Managers need valid and accurate performance ratings with which to compare employees. Managers need to determine the relative mix of individual versus team contribution to performance and then reward accordingly. Managers should use the performance ratings to differentially allocate rewards among employees. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

How Does Goal Setting Work?
7-10 Goals direct attention. Goals regulate effort. Goals increase persistence. Goals foster the development and application of task strategies and action plans. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Insights from Goal Setting Research
7-11 Difficult goals lead to higher performance Specific, difficult goals lead to higher performance for simple rather than complex tasks. Feedback enhances the effect of specific, difficult goals. Participative goals, assigned goals, and self-set goals are equally effective. Goal commitment and monetary incentives affect goal-setting outcomes. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Relationship Between Goal Difficulty
and Performance 7-12 Figure 7-2 High B A Performance C Low Low Moderate Impossible Performance Committed individuals with adequate ability Committed individuals who are working at capacity Individuals who lack commitment to high goals Challenging McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Guidelines for Writing SMART Goals
7-13 Table 7-2 Specific Measurable Attainable Results oriented Time bound McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Managerial
Actions for Enhancing Goal Commitment 7-14 Provide valued outcomes for goal accomplishment. Raise employees’ self-efficacy about meeting goals by: Providing adequate training Role modeling desired behaviors and actions Persuasively communicating confidence in the employees ability to attain the goal Have employees make a public commitment to the goal. Communicate an inspiring vision and explain how individual goals relate to accomplishing the vision. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Managerial
Actions for Enhancing Goal Commitment (Cont.) 7-15 Allow employees to participate in setting the goals. Behave supportively rather than punitively. Break a long-term goal (i.e., a yearly goal) into short-term sub-goals. Ensure that employees have the resources required to accomplish the goal. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Improving Performance with
Feedback, Rewards, and Positive Reinforcement Learning Objectives Specify the two basic functions of feedback and three sources of feedback. Define upward feedback and 360-degree feedback, and summarize the general tips for giving good feedback. Briefly explain the four different organizational reward norms. Summarize the research lessons about pay for performance, and explain why rewards often fail to motivate employees. State Throndike’s “law of effect” and explain Skinner’s distinction between respondent and operant behavior. Demonstrate your knowledge of positive reinforcement, negative reinforcement, punishment, and extinction and explain behavior shaping Chapter Eight

Timely and instructive Properly administered positive reinforcement
Bolstering the Job Performance Cycle With Feedback, Rewards and Reinforcement 8-1 Figure 8-1 Timely and instructive feedback Results Learning Personal development Stable, strong job performance Ability Effort Properly administered rewards and positive reinforcement McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Feedback Feedback: Objective information about performance.
8-2 Feedback: Objective information about performance. Functions of feedback: Instructional Motivational Three Sources of feedback: Others Task Oneself McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Nontraditional Feedback
8-3 Upward feedback: employees evaluate their boss. 360-degree feedback: comparison of anonymous feedback from one’s superior, subordinates, and peers with self-perceptions. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Popularity of Nontraditional Feedback
8-4 Traditional performance appraisal systems have created widespread dissatisfaction. Team-based organization structures are replacing traditional hierarchies. Multiple-rater systems are said to make feedback more valid than single-source feedback. Advanced computer network technology (the Internet and company Intranets) greatly facilitates multiple-rater systems. Bottom-up feedback meshes nicely with the trend toward participative management and employee empowerment. Co-workers and lower-level employees are said to know more about a manager’s strengths and limitations than the boss. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Why Feedback Fails 8-5 Feedback is used to punish, embarrass, or put down employees. Those receiving the feedback see it as irrelevant to their work. Feedback information is provided too late to do any good. People receiving feedback believe it relates to matters beyond their control. Employees complain about wasting too much time collecting and recording feedback data. Feedback recipients complain about feedback being too complex or difficult to understand. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: How to Make Sure Feedback Gets Results
8-6 Relate feedback to existing performance goals and clear expectations. Give specific feedback tied to observable behavior or measurable results. Channel feedback toward key result areas. Give feedback as soon as possible. Give positive feedback for improvement, not just final results. Focus feedback on performance, not personalities. Base feedback on accurate and credible information. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Key Factors in Organizational Reward Systems
8-7 Figure 8-2 Organization’s Reward Norms Profit maximization Equity Equality Need Types of Rewards Financial/material (extrinsic) Social (extrinsic) Psychic (intrinsic) Desired Outcomes Attract Motivate Develop Satisfy Retain Distribution Criteria Results Behavior Other factors McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Extrinsic and Intrinsic Rewards
8-8 Extrinsic rewards: financial, material, or social rewards from the environment. Intrinsic rewards: Self-granted, psychic rewards McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Organizational Reward Norms
8-9 Reward equity norm: rewards should be tied to contributions. Reward equality norm: everyone should get the same rewards. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Why Rewards Fail to Motivate
8-10 Too much emphasis on monetary rewards Rewards lack an “appreciation effect” Extensive benefits become entitlements Counterproductive behavior is rewarded Too long a delay between performance and rewards Too many one-size-fits-all rewards Use of one-shot rewards with a short-lived motivational impact Continued use of demotivating practices such as layoffs, across-the-board raises and cuts, and excessive executive compensation McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

The Use and Effectiveness of Modern Incentive Pay Plans
8-11 Table 8-1 Plan Type Have Highly Effective 74% 20% Annual Bonus 42 38 Special one-time spot awards 39 27 Individual incentives 44 32 Long-term incentives (executive level) 19 28 Lump-sum merit pay 31 22 Competency-based pay 43 22 Profit-sharing (apart from retirement program) 33 21 ESOP* stock plan *Employee Stock Ownership Plan McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

The Use and Effectiveness of Modern Incentive Pay Plans (Cont.)
8-12 Table 8-1 Plan Type Have Highly Effective 17 19 Suggestion/proposal programs 15 29 Team-based pay 13 43 Long-term incentives (below executive level) 58 12 Skill-/knowledge-based pay 24 11 Group incentives (not team-based) 29 9 Pay for quality 38 8 Gainsharing 55 7 Special key-contributor programs (before the fact) McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Contingent Consequences in Operant Conditioning
8-13 Figure 8-3 Nature of Consequences Positive or Pleasing Negative or Displeasing Positive Reinforcement Behavioral outcome: Target behavior occurs more often. Punishment Behavioral outcome: Target behavior occurs less often. Contingent Presentation Behavior-Consequence Relationship Punishment (Response Cost) Behavioral outcome: Target behavior occurs less often. Negative Reinforcement Behavioral outcome: Target behavior occurs more often. Contingent Withdrawal (no contingent consequence) Extinction Behavioral outcome: Target behavior occurs less often McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Schedules of Reinforcement
8-14 Table 8-2 Schedule Description Continuous (CRF) Reinforcer follows every response Intermittent Reinforcer does not follow every response Fixed Ratio (FR) A fixed number of responses must be emitted before reinforcement occurs Variable Ratio (VR) A varying or random number of responses must be emitted before reinforcement occurs Fixed Interval (FI) The first response after a specific period of time has elapsed is reinforced Variable Interval (VI) The first response after varying or random periods of time have elapsed is reinforced McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: How to Effectively
Shape Job Behavior 8-15 Accommodate the process of behavioral change. Define new behavior patterns specifically. Give individuals feedback on their performance. Reinforce behavior as quickly as possible. Use powerful reinforcement. Use a continuous reinforcement schedule. Use a variable reinforcement schedule for maintenance. Reward teamwork—not competition. Make all rewards contingent on performance. Never take good performance for granted. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Making Decisions Chapter Nine Learning Objectives
Compare and contrast the rational model of decision making and Simon’s normative model. Discuss knowledge management techniques used by companies to increase knowledge sharing. Explain the model of decision-making styles and the stages of the creative process. Summarize the pros and cons of involving groups in the decision-making process. Explain how participative management affects performance. Contrast brainstorming, the nominal group technique, the Delphi technique, and computer-aided decision making. Chapter Nine

The Rational Model of Decision Making
9-1 The Rational Model: logical four-step approach to decision making. Identifying the problem Generating alternative solutions Selecting a solution Implementing and evaluating the solution McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Diagnostic
Questions to Assess Whether or not Your Decisions are Ethical 9-2 Am I being honest—telling the truth, the whole truth? Does the decision parallel my personal values? Will I be keeping all promises, commitments, contracts, etc.? Is my decision permitting me to remain faithful? Would I have the other person (entity, etc.) do this to me? Am I willing to accept responsibility for this decision? Is it safe—that is, safe from liability, safe from physical, or emotional hurt, safe from danger? Does it promote excellence? Is it fair? Is my decision a result of genuine concern for someone else? McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Simon’s Normative Model
of Decision Making 9-3 The Normative Model: based on the premise that decision making is not rational. Decision making is characterized by: Limited information processing Judgmental heuristics Sacrificing McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Judgmental Heuristics
9-4 Judgmental heuristics: rules of thumb or shortcuts that people use to reduce information processing demands. Availability heuristic: tendency to base decisions on information readily available in memory. Representativeness heuristic: tendency to assess the likelihood of an event occurring based on impressions about similar occurrences. Satisficing: choosing a solution that meets a minimum standard of acceptance. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Improving Decision Making through Effective Knowledge Management
9-5 Knowledge management: implementing systems and practices that increase the sharing of knowledge and information throughout an organization. Tacit knowledge: information gained through experience that is difficult to express and formalize. Explicit knowledge: information that can be easily put into words and shared with others. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Decision-Making Styles
9-6 Figure 9-1 Analytical Conceptual Directive Behavioral Tasks and Technical Concerns People and Social Concerns Value Orientation Low High Tolerance for Ambiguity McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Escalation of Commitment
9-7 Escalation of commitment: sticking to an ineffective course of action too long. Four reasons for escalation of commitment: Psychological and social determinants Organizational determinants Project characteristics Contextual determinants McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Recommendations
To Reduce Escalation of Commitment 9-8 Set minimum targets for performance, and have decision makers compare their performance with these targets. Have different individuals make the initial and subsequent decisions about a project. Encourage decision makers to become less ego-involved with a project. Provide more frequent feedback about project completion and costs. Reduce the risk or penalties of failure. Make decision makers aware of the costs of persistence. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Creativity Creativity: process of developing something new or unique.
9-9 Creativity: process of developing something new or unique. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Avoid These
Creativity Killers 9-10 Lack of discretion and autonomy Fragmented work schedule in which people are frequently interrupted Insufficient resources to get the job done A focus on short-term goals Time pressures A lack of collaboration and coordination among employees McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Advantages and Disadvantages of Group-Aided Decision Making
9-11 Table 9-1 Advantages Disadvantages Greater pool of knowledge Social pressure Different perspectives Domination by a vocal few Greater comprehension Logrolling Increased acceptance Goal displacement Training ground “Groupthink” McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Participative Management
9-12 Participative Management: involving employees in various forms of decision making. Setting goals Making decisions Solving problems Making changes in the organization Helps employees fulfill three basic needs: Autonomy Meaningfulness of work Interpersonal contact McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Group Problem Solving Techniques
9-13 Brainstorming: process to generate a quantity of ideas. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Seven Rules for Brainstorming
9-14 Defer judgment Build on the ideas of others Encourage wild ideas Go for quantity over quality Be visual Stay focused on the topic One conversation at a time McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Group Problem Solving Techniques (Cont.)
9-15 The Nominal Group Technique: process to generate ideas and evaluate solutions. Delphi technique: process to generate ideas from physically dispersed experts. Computer-aided decision making: reduces consensus roadblocks while collecting more information in a shorter period of time. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Effective Groups and Teamwork
Learning Objectives Describe the five stages of Tuckman’s theory of group development. Contrast roles and norms, and specify four reasons norms are enforced in organizations. Explain how a workgroup becomes a team, and identify five teamwork competencies. List at least four things managers can do to build trust. Describe self-managed teams and virtual teams. Describe groupthink, and identify at least four of its symptoms. Chapter Ten

Formal and Informal Groups
10-1 Group: two or more freely interacting people with shared norms and goals and a common identity. Formal group: formed by the organization. Informal group: formed by friends. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Organizational Functions
Formal Groups Fulfill Organizational and Individual Functions 10-2 Table 10-1 Organizational Functions Accomplish complex, interdependent tasks that are beyond the capabilities of individuals. Generate new or creative ideas and solutions. Coordinate interdepartmental efforts. Provide a problem-solving mechanism for complex problems requiring varied information and assessments. Implement complex decisions. Socialize and train newcomers. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Formal Groups Fulfill Organizational and Individual Functions (Cont.)
10-3 Table 10-1 Individual Functions Satisfy the individual’s need for affiliation. Develop, enhance, and confirm the individual’s self—esteem and sense of identity. Give individuals an opportunity to test and share their perceptions of social reality. Reduce the individual’s anxieties and feelings of insecurity and powerlessness. Provide a problem-solving mechanism for personal and interpersonal problems. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Tuckman’s Five-Stage Theory of Group
Development 10-4 Figure 10-1 Performing Norming Adjourning Storming Forming Return to Independence Dependence/ interdependence Independence McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Tuckman’s Five-Stage Theory of Group Development (Cont.)
10-5 Figure 10-1 Forming Storming Norming Performing Individual Issues “How do I fit in?” “What’s my role here?” “What do the others expect me to do?” “How can I best perform my role?” “What’s next?” Group Issues “Why are we here?” “Why are we fighting over who is in charge and who does what?” “Can we agree on roles and work as a team?” “Can we do the job properly?” “Can we help members transition out?” McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Group Member Roles Task Roles Description 10-6 Table 10-2 Intiator
Suggests new goal or ideas Information seeker/giver Clarifies key issues Opinion seeker/giver Clarifies pertinent values Elaborator Promotes greater understanding through examples or exploration of implications Coordinator Pulls together ideas and suggestions Keeps group headed toward its stated goal(s). Orienter Tests groups accomplishments with various criteria such as logic and practicality Evaluator Prods group to move along or to accomplish more Energizer Performs routine duties Procedural technician Performs “group memory” function by documenting discussion and outcomes Recorder McGraw-Hill McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Group Member Roles (Cont.)
10-7 Table 10-2 Maintenance Roles Description Encourager Fosters group solidarity by accepting and praising various points of view Harmonizer Mediates conflict through reconciling or humor Compromiser Helps resolve conflict by meeting others “half way” Gatekeeper Encouragers all group members to participate Standard setter Evaluates the quality of group process Records and comments on group processes/dynamics Commentator Serves as a passive audience Follower McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Norms 10-8 Norm: shared attitudes, opinions, feelings, or actions that guide social behavior. How norms are developed: Explicit statements by supervisors or co-workers Critical events in the group’s history Primacy Carryover behaviors from past situations Why norms are enforced: Help the group or organization survive Clarify or simplify behavioral expectations Help individuals avoid embarrassing situations Clarify the group’s or organization’s central values and/or unique identity McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Teams 10-9 Team: small group with complementary skills who hold themselves mutually accountable for common purpose, goals, and approach. A group becomes a team when the following are met: Leadership becomes a shared activity Accountability shifts from strictly individual to both individual and collective The group develops its own purpose or mission Problem solving becomes a way of life, not a part-time activity Effectiveness is measured by the group’s collective outcomes and products McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Trust Trust: reciprocal faith in other’ intentions and behavior.
10-10 Trust: reciprocal faith in other’ intentions and behavior. Three Dimensions of Trust: Overall trust Emotional trust Reliableness McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

How to Build Trust Communication. Support. Respect. Fairness.
10-11 Communication. Support. Respect. Fairness. Predictability. Competence. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Indirect Influence Tactics of
Self-Managed Teams 10-12 Relating Scouting Persuading Empowering McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Virtual Teams 10-13 Virtual team: information technology allows group members in different locations to conduct business. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Threats to Group and Team Effectiveness
10-14 Groupthink: Janis’s term for cohesive in-group’s unwillingness to realistically view alternatives. Symptoms: Invulnerability Inherent morality Rationalization Stereotyped views of opposition Self-censorship Illusion of unanimity Peer pressure Mindguards McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Team Effectiveness (Cont.)
Threats to Group and Team Effectiveness (Cont.) 10-15 Social Loafing: decrease in individual effort as group size increases. Explanations: Equity of effort Loss of personal accountability Motivational loss due to sharing of rewards Coordination loss as more people perform the task McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Managing Conflict and Negotiation
Learning Objectives Define the term conflict, distinguish between functional and dysfunctional conflict, and identify three desired outcomes of conflict. Define personality conflicts, and explain how they should be managed. Discuss the role of in-group thinking in intergroup conflict, and explain what can be done to avoid cross-cultural conflict. Explain how managers can program functional conflict, and identify the five conflict handling styles. Identify and describe at least four alternative dispute resolution (ADR) techniques. Draw a distinction between distributive and integrative negotiation, and explain the concept of added-value negotiation. Chapter Eleven

Conflict 11-1 Conflict: one party perceives its interests are being opposed or set back by another party. Functional conflict: serves organization’s interests. Dysfunctional conflict: threatens organization’s interests. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Antecedents of Conflict
11-2 Incompatible personalities or value systems. Overlapping or unclear job boundaries. Competition for limited resources. Interdepartment/intergroup competition. Inadequate communication. Interdependent tasks. Organizational complexity. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Antecedents of Conflict (Cont.)
11-3 Unreasonable or unclear policies, standards, or rules. Unreasonable deadlines or extreme time pressure. Collective decision making Decision making by consensus. Unmet expectations. Unresolved or suppressed conflict. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Desired Outcomes of Conflict
11-4 Agreement Stronger relationships Learning McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Personality Conflict 11-5 Personality conflict: interpersonal opposition driven by personal dislike or disagreement. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Tips for Employees Having a Personality Conflict
Skills & Best Practices: How to Deal with Personality Conflicts 11-6 Tips for Employees Having a Personality Conflict All employees need to be familiar with and follow company policies for diversity, antidiscrimination, and sexual harassment Communicate directly with the other person to resolve the perceived conflict Avoid dragging coworkers into the conflict. If dysfunctional conflict persists, seek help from direct supervisors or human resource specialists McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Tips for Third-Party Observers of a Personality Conflict
Skills & Best Practices: How to Deal with Personality Conflicts (Cont.) 11-7 Tips for Third-Party Observers of a Personality Conflict All employees need to be familiar with and follow company policies for diversity, antidiscrimination, and sexual harassment Do not take sides in someone else’s personality conflict Suggest the parties work things out themselves in a constructive and positive way If dysfunctional conflict persists, refer problem to parties’ direct supervisors McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Tips for Managers Whose Employees are Having a Personality Conflict
Skills & Best Practices: How to Deal with Personality Conflicts (Cont.) 11-8 Tips for Managers Whose Employees are Having a Personality Conflict All employees need to be familiar with and follow company policies for diversity, antidiscrimination, and sexual harassment Investigate and document conflict If appropriate, take corrective action If necessary, attempt informal dispute resolution Refer difficult conflicts to human resource specialists or hired counselors for formal resolution attempts and other interventions McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

In-Group Thinking: The Seeds Of Intergroup Conflict
11-9 Members of in-groups view themselves as a collection of unique individuals. In-group members see themselves positively and as morally correct, while they view members of other groups negatively and as immoral. In-groups view outsiders as a threat. In-group members exaggerate the differences between their group and other groups. This typically involves a distorted sense of reality. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Inter-group conflict tends to increase when:
Minimizing Intergroup Conflict: An Updated Contact Model 11-10 Figure 11-1 Level of perceived Inter-group conflict tends to increase when: Recommended actions: Work to eliminate specific negative interactions between groups (and members). Conduct team building to reduce intragroup conflict and prepare employees for cross-functional teamwork. Encourage personal friendships and good working relationships across groups and departments. Foster positive attitudes toward members of other groups (empathy, compassion, sympathy). Avoid or neutralize negative gossip across groups or departments. Conflict within the group is high There are negative interactions between groups (or between members of those groups) Influential third-party gossip about other group is negative McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: How to Build Cross-Cultural Relationships
11-11 Behavior Rank Be a good listener Be sensitive to the needs of others Be cooperative, rather than overly competitive Advocate inclusive (participative) leadership Compromise rather than dominate Build rapport through conversations Be compassionate and understanding Avoid conflict by emphasizing harmony Nurture others (develop and mentor) Tie McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Programming Functional Conflict
11-12 Programmed Conflict: encourages different opinions without protecting management’s personal feelings. Devil’s advocacy: assigning someone the role of critic. Dialectic method: fostering a debate of opposing viewpoints to better understand an issue. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Techniques for Stimulating Functional Conflict: Devil’s Advocacy
11-13 Figure 11-2 A Devil’s Advocacy Decision Program 1. A Proposed Course of Action is generated 2. A devil’s advocate is assigned to criticize the proposal 3. The critique is presented to key decision makers 4. Any additional information relevant to the issues is gathered 5. The decision to adopt, modify, or discontinue the proposed course of action is taken 6. The decision is monitored McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Techniques for Stimulating Functional Conflict: the Dialectic Method
11-14 Figure 11-2 The Dialectic Decision Method 1. A Proposed Course of Action is generated 2. Assumptions underlying the proposal are identified 3. A conflicting counterproposal is generated based on different assumptions 4. Advocates of each position present and debate the merits of their proposals before key decision makers 5. The decision to adopt either position or some other position is taken 6. The decision is monitored McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Five Conflict Handling Styles
11-15 Figure 11-3 Integrating Obliging High Compromising Concern for Others Dominating Avoiding Low High Low Concern for Self McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Alternative Dispute Resolution (ADR)
Techniques 11-16 Alternative Dispute Resolution: avoiding costly lawsuits by resolving conflicts informally or through mediation or arbitration. Techniques: Facilitation Conciliation Peer review Ombudsman Mediation Arbitration McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Negotiation 11-17 Negotiation: give-and-take process between conflicting independent parties. Two types: Distributive Integrative McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Added-Value Negotiation
11-18 Added-Value Negotiation: cooperatively developing multiple-deal packages while building a long-term relationship Five Steps: Clarify interests Identify options Design alternative deal packages Select a deal Perfect the deal McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Seven Steps To Negotiating Your Salary
11-19 Know the going rate Don’t fudge your past compensation Present cold, hard proof of your value Let the other party name a figure first Don’t nickel-and-dime Avoid extravagant extras Seek incentives and practical perks McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Communicating in the Internet
Age Learning Objectives Describe the perpetual process model of communication. Demonstrate your familiarity with four antecedents of communication distortion between managers and employees. Contrast the communication styles of assertiveness, aggressiveness, and nonassertiveness. Discuss the primary sources of nonverbal communication and 10 keys to effective listening. Explain the information technology of Internet/Intranet/Extranet, , videoconferencing, and collaborative computing, and explain the related use of telecommuting. Describe the process, personal, physical, and semantic barriers to effective communication. Chapter Twelve

A Perceptual Model of Communication
12-1 Figure 12-1 Sender Encodes ideas or thoughts Creates message Decodes message Creates meaning Receiver Transmitted on medium Decodes message Creates meaning Noise Creates message Encodes response/ feedback Transmitted on medium McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Pattern of Distortion in Upward Communication
Sources of Distortion In Upward Communication 12-2 Figure 12-2 Pattern of Distortion in Upward Communication Situational Antecedents Supervisor’s upward influence Low High Increased distortion because employees send more favorable information and withhold useful information. Low High 2. Supervisor’s power Increased distortion because employees screen out information detrimental to their welfare. Low High 3. Subordinate’s aspiration for upward mobility Less accuracy because employees tend to pass along information that helps their cause. Low High 4. Subordinate’s trust in the supervisor Considerable distortion because employees do not pass up all information they receive. McGraw-Hill McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Reducing Distortion Managers can reduce distortion by:
12-3 Managers can reduce distortion by: Managers can deemphasize power differences between themselves and their direct reports. They can enhance trust through a meaningful performance review process that rewards actual performance. Managers can encourage staff feedback by conducting smaller, more informal meetings. They can establish performance goals that encourage employees to focus on problems rather than personalities. Distortion can be limited by encouraging dialogue between those with appropriate viewpoints. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Communication Competence Affects
Upward Mobility 12-4 Figure 12-3 Communication Competence Upward Mobility Communication Abilities/Traits Situational Factors Individuals Involved McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Assertiveness, Aggressiveness, and
Nonassertiveness 12-5 Assertive style: expressive and self-enhancing, but does not take advantage of others. Aggressive style: expressive and self-enhancing, but takes advantage of others. Nonassertive style: timid and self-denying behavior. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Communication Styles Assertive 12-6 Table 12-1
Communication Nonverbal Behavior Verbal Behavior Style Description Pattern Pattern Good eye contact; Comfortable but firm posture; Strong, steady and audible voice; Facial expressions matched to message; Appropriately serious tone; Selective interruptions to ensure understanding. Direct and unambiguous language; No attributions or evaluations of others’ behavior; Use of “I” statements and cooperative “we” statements. Pushing hard without attacking; permits others to influence outcome; expressive and self-enhancing without intruding on others. Assertive McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Communication Styles (Cont.)
12-7 Table 12-1 Communication Nonverbal Behavior Verbal Behavior Style Description Pattern Pattern Glaring eye contact; Moving or leaning too close; Threatening gestures (pointing finger; clenched fist); Loud Voice; Frequent interruptions. Swear words and abusive language; Attributions and evaluations of others’ behavior; Sexist or racists terms; Explicit threats or put-downs. Taking advantage of others; Expressive and self-enhancing at others’ expense. Aggressive McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Communication Styles (Cont.)
12-8 Table 12-1 Communication Nonverbal Behavior Verbal Behavior Style Description Pattern Pattern Little eye contact; Downward glances; Slumped postures; Constantly shifting weight; Wringing hands; Weak or whiny voice. Qualifiers (“maybe,” “kind of” ); Fillers (“uh,” “you know,” “well”); Negaters (“it’s really not that important,” “I’m not sure”). Encouraging others to take advantage of us; Inhibited; Self-denying. Nonassertive McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Nonverbal Communication
12-9 Nonverbal Communication: messages sent outside of the written and spoken word. Sources: Body movement and gestures Touch Facial expression Eye contact McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Advice to Improve
Nonverbal Communication Skills 12-10 Positive nonverbal actions include the following: Maintain eye contact Nod your head to convey that you are listening or that you agree Smile and show interest Lean forward to show the speaker you are interested Use a tone of voice that matches your message McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Advice to Improve
Nonverbal Communication Skills (Cont.) 12-11 Negative nonverbal actions include the following: Avoiding eye contact and looking away from the speaker Closing your eyes or tensing your facial muscles Excessive yawning Using body language that conveys indecisiveness or lack of confidence Speaking too fast or too slow McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Active Listening 12-12 Listening: actively decoding and interpreting verbal messages. Listening Styles: Appreciative Empathetic Comprehensive Discerning Evaluative McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

The Keys to Effective Listening
12-13 Table 12-1 Key to Effective Listening The Bad Listener The Good Listener Capitalize on thought speed Tends to daydream Stays with the speaker, mentally summarizes the speaker, weighs evidence, and listens between the lines Listen for ideas Listens for facts Listens for central or overall ideas Find an area of interest Tunes out dry speakers or subjects Listens for any useful information Judge content not delivery Tunes out dry monotone speakers Assesses content by listening to entire message before making judgments McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Fights distractions and concentrates on the speaker
The Keys to Effective Listening (Cont.) 12-14 Table 12-1 Key to Effective Listening The Bad Listener The Good Listener Hold your fire Gets too emotional or worked up by something said by the speaker and enters into an argument Withholds judgment until comprehension is complete Work at listening Does not expend energy on listening Gives the speaker full attention Resist distractions Is easily distracted Fights distractions and concentrates on the speaker McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

The Keys to Effective Listening (Cont.)
12-15 Table 12-1 Key to Effective Listening The Bad Listener The Good Listener Hear what is said Shuts our or denies unfavorable information Listens to both favorable and unfavorable information Challenge yourself Resists listening to presentations of difficult subject manner Treats complex presentations as exercises for the mind Use handouts, overheads, or other visual aids Does not take notes or pay attention to visual aids Takes notes as required and uses visual aids to enhance understanding of the presentation McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Key Terms Associated with Information
Technology 12-16 Internet: a global network of computer networks. Intranet: an organization’s private internet. Extranet: connects internal employees with selected customers, suppliers, and strategic partners. Electronic Mail: uses the Internet/Intranet to send computer-generated text and documents. Collaborative computing: using computer software and hardware to help people work better together. Telecommuting: doing work that is generally performed in the office away from the office using different information technologies. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Managing
Your 12-17 Scan first, read second Learn to delete without reading Group messages by topic Once steps 1-3 are complete, prioritize your inbox and respond in order of a message’s importance Stop the madness by asking people to stop sending you unimportant messages McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Managing
Your (Cont.) 12-18 Rather than continuing to engage in ping-pong ing, determine if a phone call can get to the heart of the matter Get off CC lists Only respond to a message when it is absolutely required Keep messages brief and clear Avoid the reply to all feature If the message concerns a volatile or critical matter, is probably the wrong medium to use McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Barriers to Effective Communication
12-19 Process Barriers: Sender barrier Encoding barrier Message barrier Medium barrier Decoding barrier Receiver barrier Feedback barrier McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Barriers to Effective Communication (Cont.) Personal Barriers:
12-20 Personal Barriers: Ability to effectively communicate Way people process and interpret information Level of interpersonal trust between people Stereotypes and prejudices Poor listening skills Tendency to evaluate or judge the sender’s message Inability to listen with understanding McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Barriers to Effective Communication (Cont.) Physical Barriers
12-21 Physical Barriers Semantic Barriers McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Influence, Power, and Politics An Organizational Survival Kit
Learning Objectives Name five “soft” and four “hard” influence tactics and summarize the practical lessons from influence research. Identify and briefly describe French and Raven’s five bases of power. Define the term empowerment and explain how to make it succeed. Define organizational politics and explain what triggers it, and specify the three levels of political action in organizations. Distinguish between favorable and unfavorable impression management tactics. Explain how to manage organizational politics. Chapter Thirteen

Nine Generic Influence Tactics
13-1 Rational persuasion Inspirational appeals Consultation Ingratiation Personal appeals Exchange Coalition tactics Pressure Legitimating tactics McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: How to Turn Your
Coworkers into Strategic Allies 13-2 Mutual respect Openness Trust Mutual benefit McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Five Bases of Power 13-3 Reward power: obtaining compliance with promised or actual rewards. Coercive power: obtaining compliance through threatened or actual punishment. Legitimating power: obtaining compliance through formal authority. Expert power: obtaining compliance through one’s knowledge or information. Referent power: obtaining compliance through charisma or personal attraction. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Employee Empowerment 13-4 Empowerment: sharing varying degrees of power with lower-level employees to better serve the customer. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Randolph’s Empowerment Model
13-5 Figure 13-1 The Empowerment Plan Share Information Create Autonomy Through Structure Let Teams Become The Hierarchy Remember: Empowerment is not magic; it consists of a few simple steps and a lot of persistence. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Organizational Politics
13-6 Organizational Politics: intentional enhancement of self-interest. Political tactics: Attacking or blaming others Using information as a political tool Creating a favorable image Developing a base of support Praising others Forming power coalitions with strong allies Associating with influential people Creating obligations McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Level of Political Action in Organizations
13-7 Figure 13-2 Distinguishing Characteristics Cooperative pursuit of general self-interests Network Level Coalition Level Cooperative pursuit of group interests in specific issues Individual Level Individual pursuit of general self-interests McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Impression Management
13-8 Impression Management: getting others to see us in a certain manner. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Bad Impressions Four motives for intentionally looking bad at work:
13-9 Four motives for intentionally looking bad at work: Avoidance Obtain concrete rewards Exit Power McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Bad Impressions (Cont.)
13-10 Five unfavorable upward impression management tactics: Decreasing performance Not working to potential Withdrawing Displaying a bad attitude Broadcasting limitations McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: How to Keep
Organizational Politics within Reasonable Bounds 13-11 Screen out overly political individuals at hiring time. Create an open-book management system. Make sure every employee knows how the business works and has a personal line of sight to key results with corresponding measurable objectives for individual accountability. Have nonfinancial people interpret periodic financial and accounting statements for all employees. Establish formal conflict resolution and grievance processes. As an ethics filter, do only what you feel comfortable doing on national television. Publicly recognize and reward people who get real results without political games. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Leadership Chapter Fourteen Learning Objectives
Review trait theory research, and discuss the idea of one best style of leadership using the Ohio State studies and the Leadership Grid as points of reference. Explain, according to Fiedler’s contingency model, how leadership style interacts with situational control. Discuss House’s revised path-goal theory and Hersey and Blanchard’s situational leadership theory. Describe the difference between transactional and transformational leadership and discuss how transformational leadership transforms followers and work groups. Explain the leader-member exchange (LMX) model of leadership and the concept of shared leadership. Review the principles of servant leadership and discuss Level 5 leadership Chapter Fourteen

Trait Theory 14-1 Leader trait: personal characteristics that differentiate leaders from followers. Leadership prototype: mental representations of the traits and behaviors possessed by leaders. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Gender and Leadership 14-2 Men and women were seen as displaying more task and social leadership, respectively Women used a more democratic or participative style than men and men used a more autocratic and directive style than women Men and women were equally assertive Women executives, when rated by their peers, managers, and direct reports, scored higher than their male counterparts on a variety of effectiveness criteria Men displayed more laissez-faire leadership McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Behavioral Styles Theory
14-3 The Ohio State Studies: identified two critical dimensions of leader behavior. Consideration: creating mutual respect and trust with followers. Initiating structure: organizing and defining what group members should be doing. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Behavioral Styles Theory (Cont.)
14-4 University of Michigan Studies identified two leadership styles that were similar to the Ohio State studies--one style was employee centered and the other was job centered The Leadership Grid © represents five leadership styles found by crossing concern for production and concern for people Impoverished management Country club management Authority-compliance Middle-of-the-road management Team management McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Peter Drucker’s
Tips for Improving Leadership Effectiveness 14-5 Determine what needs to be done. Determine the right thing to do for the welfare of the entire enterprise or organization. Develop action plans that specify desired results, probably restraints, future revisions, check-in points, and implications for how one should spend his or her time. Take responsibility for decisions. Take responsibility for communicating action plans and give people the information they need to get the job done. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Peter Drucker’s
Tips for Improving Leadership Effectiveness (Cont.) 14-6 Focus on opportunities rather than problems. Do not sweep problems under the rug, and treat changes as an opportunity rather than a threat. Run productive meetings. Different types of meetings require different forms of preparation and different results. Prepare accordingly. Think and say “we” rather than “I”. Consider the needs and opportunities of the organization before thinking of your own opportunities and needs. Listen first, speak last. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Situational Theories 14-7 Situational theories: propose that leader styles should match the situation at hand. Fiedler’s Contingency Model The performance of a leader depends on two interrelated factors: The degree to which the situation gives the leader control and influence The leader’s basic motivation McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Representation of Fiedler’s Contingency Model
14-8 Figure 14-1 Situational Control High Control Situations Moderate Control Situations Low Control Situations Leader-member relations Task Structure Position Power Good Good Good High High High Strong Weak Strong Good Poor Poor Low High High Weak Strong Strong Poor Poor Low Low Strong Weak Situation I II III IV V VI VII VIII Optimal Leadership Style Task Motivated Leadership Relationship Motivated Leadership Task Motivated Leadership McGraw-Hill McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc. All rights reserved.

A General Representation of House’s Revised Path-Goal Theory
14-9 Figure 14-2 Employee Characteristics Leader Behavior Leadership Effectiveness Environmental Factors McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Categories of Leader Behavior within the Revised Path-Goal Theory
14-10 Table 14-1 Path-goal clarifying behaviors Achievement-oriented behaviors Work facilitation behaviors Supportive behaviors Interaction facilitation behaviors Group-oriented decision-making behaviors Representation and networking behaviors Value-based behaviors McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Situational Leadership Model 14-11 Figure 14-3 Participating S3
Leader Behavior High Participating S3 Share ideas and facilitate in decision making Selling S2 Explain decisions and provide opportunity for clarification Relationship Behavior (supportive behavior) Delegating S4 Turn over responsibility for decisions and implementation Telling S1 Provide specific instructions and closely supervise performance Low Low Task Behavior High Follower Readiness High Moderate Low R R R2 R1 Follower-Directed Leader-Directed McGraw-Hill McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Transactional Leadership
14-12 Transactional leadership: focuses on the clarifying employees’ roles and providing rewards contingent on performance. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Transformational Leadership
14-13 Transformational leaders: transforms employees to pursue organizational goals over self-interests. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Effects on followers and work groups
A Transformational Model of Leadership 14-14 Figure 14-4 Individual and Organizational Characteristics Leader behavior Effects on followers and work groups Outcomes McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Johnson & Johnson’s Seven Guiding Principles
14-15 Leadership development is a key business strategy Leadership excellence is a definable set of standards People are responsible for their own development Johnson & Johnson executives are accountable for developing leaders Leaders are developed primarily on the job People are an asset of the corporation Human resources is vital to the success of leadership development McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

The Leader-Member Exchange (LMX)
Model of Leadership 14-16 This model is based on the idea that one of two distinct types of leader-member exchange relationships evolve, and these exchanges are related to important work outcomes. in-group exchange: a partnership characterized by mutual trust, respect and liking out-group exchange: a partnership characterized by a lack of mutual trust, respect and liking Research supports this model McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Tips for Improving the Quality of LMX
14-17 Stay focused on your department’s goals and remain positive about your ability to accomplish your goals. Do not fall prey to feeling powerless and empower yourself to get things done. Exercise the power you have by focusing on circumstances you can control and avoid dwelling on circumstances you cannot control. Work on improving your relationship with your manager. Use an authentic, respectful, and assertive approach to resolve differences with your manager. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Shared Leadership 14-18 Shared leadership: simultaneous, ongoing, mutual influence process in which people share responsibility for leading. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Key Questions to Consider When Developing Shared Leadership
14-19 Table 14-3 What task characteristics call for shared leadership? What is the role of the leader in developing shared leadership? How can organizational systems facilitate the development of shared leadership? What vertical and shared leadership behaviors are important to team outcomes? What are the ongoing responsibilities of the vertical leader? McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Servant Leadership 14-20 Servant leadership: focuses on increasing services to others rather than one’s self. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Characteristics of Servant Leadership
14-21 Table 14-2 Servant-Leadership Characteristics Description Listening Servant leaders focus on listening to identify and clarify the needs and desires of a group Empathy Servant leaders try to empathize with others’ feelings and emotions Healing Servant leaders strive to make themselves and others whole in the face of failure and suffering Awareness Servant leaders are very self-aware of their strengths and limitations Servant leaders rely more on persuasion than positional authority when making decisions and trying to influence others Persuasion McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Characteristics of Servant
Leadership (Cont.) 14-22 Table 14-2 Servant-Leadership Characteristics Description Conceptualization Servant leaders take the time and effort to develop broader based conceptual thinking Foresight Servant leaders have the ability to foresee future outcomes associated with a current course of action or situation Stewardship Servant leaders assume that they are stewards of the people and resources they manage Commitment to the growth of people Servant leaders are committed to people beyond their immediate work role Servant leaders strive to create a sense of community both within and outside the work organization Building community McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

The Level 5 Hierarchy Level 5: Executive Level 4: Effective Leader
14-23 Figure 14-5 Level 4: Effective Leader Level 5: Executive Level 3: Competent Manager Level 2: Contributing Team Member Level 1: Highly Capable Individual McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Designing Effective Organizations
Learning Objectives Describe the four characteristics common to all organizations. Explain the difference between closed and open systems, and contrast the military/mechanical, biological, and cognitive systems metaphors for organizations. Describe the four generic organizational effectiveness criteria. Explain what the contingency approach to organizational design involves. Discuss Burns and Stalker’s findings regarding mechanistic and organic organizations. Describe new-style and old-style organizations, and list the keys to managing geographically-dispersed employees in virtual organizations. Chapter Fifteen

What is an Organization?
15-1 Organization: system of consciously coordinated activities of two or more people. Unity of command principle: each employee should report to a single manager. Organization chart: boxes-and-lines illustration showing chain of formal authority and division of labor. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Sample Organization Chart for a Hospital
15-2 Figure 15-1 Board of Directors Strategic Planning Advisor Legal Counsel Chief Executive Officer Cost- Containment Staff President Executive Administrative Director Executive Medical Director McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Sample Organization Chart for a Hospital (Cont.)
15-3 Figure 15-1 Executive Administrative Staff Executive Medical Director Dir. Of Human Resources Dir. Of Patient & Public Relations Dir. Of Nutrition & Food Services Dir. X-Ray & Lab Services Dir. Of Out- Patient Services Chief Physician Dir. Of Admissions Dir. Of Accounting Dir. Of Surgery Dir. Of Pharmacy McGraw-Hill McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Span of Control 15-4 Span of control: the number of people reporting directly to a given manager. Staff personnel: provide research, advice, and recommendations to line managers. Line Managers: have authority to make organizational decisions. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Needed: Open-System Thinking
15-5 Closed System: “A self-sufficient entity, closed to the surrounding environment.” (For example, a battery-powered clock.) Open system: “Depends on constant interaction with the surrounding environment for survival.” (For example, the human body.) McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Organizations as Military/Mechanical
Bureaucracies 15-6 Bureaucracy: Max Weber’s idea of the most rationally efficient form of organization. Weber’s Bureaucracy: four factors should make bureaucracies the epitome of efficiency Division of labor A hierarchy of authority A framework of rules Administrative personality McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Goals and Values Subsystem Psychological Subsystem
The Organization as an Open System: The Biological Metaphor 15-7 Figure 15-2 Goals and Values Subsystem Technical Subsystems Inputs Outputs Managerial Subsystem Psychological Subsystem Structural Subsystem Feedback McGraw-Hill McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Generic Effectiveness Criteria
15-8 “No single approach to the evaluation of effectiveness is appropriate to all circumstances or for all organization types.” Goal accomplishment Resource acquisition Internal processes Strategic constituencies satisfaction Strategic constituency: any group of people with a stake in the organization’s operation or success. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Strategic Constituencies Satisfaction
Four Dimensions of Organizational Effectiveness 15-9 Figure 15-3 Goal Accomplishment Resource Acquisition Strategic Constituencies Satisfaction Internal Processes McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

The Contingency Approach to Designing
Organizations 15-10 Contingency approach to organization design: creating an effective organization-environment fit. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Mechanistic versus Organic
Organizations 15-11 Mechanistic organizations: “Rigid bureaucracies with strict rules, narrowly defined tasks, and top-down communication.” (Tend toward centralized decision-making.) Organic organizations: “Flexible networks of multitalented individuals who perform a variety of tasks.” (Tend toward decentralized decision making.) McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

New-Style versus Old-Style
Organizations 15-12 Table 15-1 Customer oriented Lateral/networked Involvement oriented Team oriented Skills oriented Product/customer oriented Small and large Global Information rich Dynamics learning New Job requirements oriented Hierarchical Command/control oriented Individual oriented Job oriented Functional Large Local Information is scarce Stable Old McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: How to Manage Globally-Dispersed Employees
15-13 The three keys are: sharing knowledge, building trust, and maintaining connectedness Other steps include: Hire carefully Communicate regularly Practice “management by walking around” Conduct regular audits Use technology as a tool, not a weapon Achieve a workable balance between online and live training McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Organizational Learning
Managing Change and Organizational Learning Learning Objectives Discuss the external and internal forces that can create the need for organizational change. Describe Lewin’s change model and the systems model of change. Explain Kotter’s eight steps for leading organizational change. Review the 10 reasons employees resist change. Identify alternative strategies for overcoming resistance to change. Discuss the process organizations use to build their learning capabilities. Chapter Sixteen

External Forces of Change
16-1 External forces for change: originate outside the organization. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

External Forces of Change (Cont.)
16-2 Demographic characteristics: The workforce is more diverse there is a business imperative to effectively manage diversity Technological advancements: organizations are increasingly using technology as a means to improve productivity and market competitiveness Market changes: the emergence of a global economy is forcing companies to be more competitive and to do business differently organizations are forging new partnerships and alliances aimed at creating new products and services Social and political pressures: society and its legislative bodies can put pressure on organizations to change the way they do business--the tobacco industry is a good example McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Internal Forces of Change
16-3 Internal forces for change: originate outside the organization. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Lewin’s Change Model Unfreezing Changing Refreezing 16-4
Creates the motivation to change Encourages the replacement of old behaviors and attitudes with those desired by management Entails devising ways to reduce barriers to change Creates psychological safety Changing Provides new information, new behavioral models, or new ways of looking at things Helps employees learn new concepts or points of view Role models, mentors, experts, benchmarking results, and training are useful mechanisms to facilitate change Refreezing Helps employees integrate the changed behavior or attitude into their normal way of doing things Positive reinforcement is used to reinforce the desired change Coaching and modeling help reinforce the stability of change McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

A Systems Model of Change
16-5 Figure 16-1 Target Elements of Change Organizing Arrangements Inputs Outputs Internal * Strengths * Weaknesses External * Opportunities * Threats * Organizational Level * Department/ group level * Individual level Strategy Goals People Social Factors Methods McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Steps to Leading Organizational Change
16-6 Table 16-1 Step Description Unfreeze the organization by creating a compelling reason for why change is needed. Establish a sense of urgency Create a cross-functional cross-level group of people with enough power to lead the change. Create the guiding coalition Create a vision and strategic plan to guide the change process. Develop a vision and strategy Create and implement a communication strategy that consistently communicates the new vision and strategic plan. Communicate the change vision McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Steps to Leading Organizational
Change (Cont.) 16-7 Table 16-1 Step Description Eliminate barriers to change and use target elements of change to transform the organization. Encourage risk taking and creative problem solving. Empower broad based action Plan for and create short-term “wins” or improvements. Recognize and reward people who contribute to the wins. Generate short-term wins McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Steps to Leading Organizational
Change (Cont.) 16-8 Table 16-1 Step Description The guiding coalition uses credibility from short-term wins to create more change. Additional people are brought into the change process as change cascades throughout the organization. Attempts are made to reinvigorate the change process. Consolidate gains and produce more change Reinforce the changes by highlighting connections between new behaviors and processes and organizational success. Develop methods to ensure leadership development and succession. Anchor new approaches in the culture McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Characteristics of Organization
Development 16-9 Organization Development: a set of techniques or tools that are used to implement organizational change. OD Involves Profound Change OD is Value Loaded OD is a Diagnosis/Prescription Cycle OD is Process-Oriented McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Some OD Interventions for
Implementing Change 16-10 Table 16-2 Survey feedback Process consultation Team building Intergroup development Technostructural activities McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Why People Resist Change in the
Workplace 16-11 An individual’s predisposition toward change Surprise and fear of the unknown Climate of mistrust Fear of failure Loss of status and/or job security McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Why People Resist Change in the
Workplace (Cont.) 16-12 Peer pressure Disruption of cultural traditions and/or group relationships Personality conflicts Lack of tact and/or poor timing Nonreinforcing reward systems McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Six Strategies for Overcoming
Resistance to Change 16-13 Table 16-3 Approach Can be very time consuming if lots of people are involved Once persuaded people will often help with the implementation of change Where there is a lack of information or inaccurate information and analysis Education Can be very time consuming if participators design an inappropriate change People who participate will be committed to implementing change, and any relevant information they have will be integrated into the change plan Where the initiators do not have all the information they need and where others have considerable power to resist Participation & Involvement Commonly used in situations Advantages Drawbacks McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Six Strategies for Overcoming Resistance to Change (Cont.)
16-14 Table 16-3 Approach Can be time consuming, expensive, and still fail No other approach works as well with adjustment problems Where people are resisting because of adjustment problems Facilitation & Support Can be too expensive in many cases if alerts others to negotiate for compliance Sometimes it is a relatively easy way to avoid major resistance No other approach works as well with adjustment problems Negotiation & Agreement Commonly used in situations Advantages Drawbacks McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Six Strategies for Overcoming Resistance to Change (Cont.)
16-15 Table 16-3 Approach Can lead to future problems if people feel manipulated It can be a relatively quick and inexpensive solution to resistance problems Where other tactics will not work or are too expensive Manipulation & Cooperation Can be risky if it leaves people mad at the initiators It is speedy and can overcome any kind of resistance Where speed is essential and where the change initiators possess considerable power Explicit & Implicit Coercion Commonly used in situations Advantages Drawbacks McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Building an Organization’s Learning Capability
16-16 Figure 16-2 Internal structure and processes Facilitating factors Customer satisfaction Sales growth An organization’s learning capability Organizational performance Learning mode Profitability Culture and experience McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Factors that Facilitate Organizational
Learning 16-17 Table 16-4 Scanning imperative Performance gap Concern for measurement Experimental mindset Climate of openness Continuous education Operational variety Multiple advocates Involved leadership Systems perspective McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Six Dominant Modes of Learning
16-18 Analytical learning Synthetic learning Experimental learning Interactive learning Structural learning Institutional learning McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Characteristics
of Teacher-Learners 16-19 Become actively involved in teaching and learning. Demonstrate that you care about your coworkers’ well-being. Develop relationships with as many people from different backgrounds, experience, and organizational positions as possible. Reflect on what you have learned from a given situation. Listen to others and try to learn something from social interactions with others. McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Working to Generate Ideas with Impact
16-20 Implement continuous improvement programs Increase employee competence through training, or buy talent from outside the organization Experiment with new ideas, processes, and structural arrangements Go outside the organization to identify world-class ideas and processes Instill systems thinking throughout the organization McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Working to Generalize Ideas with Impact
16-21 Measuring and rewarding learning Increasing open and honest dialog among organizational members Reducing conflict Increasing horizontal and vertical communications Promoting teamwork Rewarding risk taking and innovation Reducing the fear of failure Increasing the sharing of successes, failures, and best practices across organizational members Reducing stressors and frustration Reducing internal competition Increasing cooperation and collaboration Creating a psychologically safe and comforting environment McGraw-Hill/Irwin McGraw-Hill © The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

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