2. Hewlett-Packard The HP Way Shunned rigid hierarchy Big Bonuses First All-company profit sharing When HP went public (shares all employees) HP Trusts employees Not Coddling (fire unethical employees) Current situation

3. 1. Job security 2. Careful hiring 3. Power to the people 4. Generous pay for performance 5. Lots of training 6. Less emphasis on status 7. Trust building 71% of U.S. workers consider themselves ‘disengaged’ clock-watchers who can’t wait to go home. 1-1 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. Pfeffer’s Seven People-Centered Practices

4. What was your best job? Why was it your best job?

5. 1-2 Figure 1-1 The 4-P Cycle of Continuous Improvement 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 © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

6. 1. Clarifies goals and objectives for everyone involved. 2. Encourages participation, upward communication, and suggestions. 3. Plans and organizes for an orderly workflow 4. Has technical and administrative expertise to answer organization-related questions. 5. Facilitates work through team building, training, coaching, and support. 1-3 Skills & Best Practices: The Effective Manager’s Skill Profile McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

7. 6. Provides feedback honestly and constructively. 7. Keeps things moving by relying on schedules, deadlines, and helpful reminders. 8. Controls details without being overbearing. 9. Applies reasonable pressure for goal accomplishment. 10. Empowers and delegates key duties to others while maintaining goal clarity and commitment. 11. Recognizes good performance with rewards and positive reinforcement. 1-4 Skills & Best Practices: The Effective Manager’s Skill Profile (Cont.) McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

8. How has the managers job changed?

11. 1-5 Table 1-1 Evolution of 21 st Century Managers Multicultural, multilingual Monocultural, monolingual Cultural orientation Skills, resultsTime, effort, rank Compensation criteria Continuous life-long learning, generalist with multiple specialties Periodic learning, narrow specialist Learning and knowledge Facilitator, team member, teacher, advocate, sponsor, coach, partner Order giver, privileged elite, manipulator, controller Primary role Future ManagersPast Managers McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

12. 1-6 Table 1-1 Evolution of 21 st Century Managers (Cont.) Broad-based input for joint decisions Limited input for individual decisions Decision-making style MultidirectionalVertical Primary communication- pattern Primary resourcePotential problem View of people Knowledge (technical and interpersonal) Formal authority Primary source of influence Future ManagersPast Managers McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

13. 1-7 Table 1-1 Evolution of 21 st Century Managers (Cont.) FacilitateResist Approach to change Share and broaden access Hoard and restrict access Handling of power and key information Cooperative (win-win)Competitive (win- lose) Nature of interpersonal relationships ForethoughtAfterthought Ethical considerations Future ManagersPast Managers McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

14. Theory X Most people dislike work Most people must be coerced and threatened before they will work Most people actually prefer to be directed 1-8 McGregor’s Theory X and Theory Y 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 © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

15. Total Quality Management: An organizational culture dedicated to training, continuous improvement, and customer satisfaction Principles of TQM 1. Do it right the first time to eliminate costly rework. 2. Listen to and learn from customers and employees. 3. Make continuous improvement an everyday matter. 4. Build teamwork, trust and mutual respect. 1-9 What is TQM? McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

16. 85-15 rule System versus People The power of stories It depends (contingency approach)

17. 1-10 The Age of Human and Social Capital 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 © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

18. 1-11 Figure 1-2 The Strategic Importance and Dimensions of Human and Social Capital Strategic Assumption Individual Human Capital Social Capital Organizational Learning McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

19. 1-12 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Skills & Best Practices: How to Build Human and Social Capital Building Human Capital “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 “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 Program or activityCompany McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

20. 1-13 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Skills & Best Practices: How to Build Human and Social Capital (Cont.) Building Social Capital “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 “The software giant…matches charity donations up to $12,000.” Microsoft Redmond, WA 36,665 employees Program or activityCompany McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

21. 1-14 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Skills & Best Practices: How to Build Human and Social Capital (Cont.) Building Social Capital “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 Program or activityCompany McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

22. Positive Organizational Behavior (POB) the study and improvement of employees’ positive attributes and capabilities 1-15 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Positive Organizational Behavior McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

23. Negative employees can scare off customers—for good. Increasing positive emotions could lengthen life span by 10 years. Praise is a powerful leadership strategy. 65% of people said they received no recognition for good work. The number 1 reason most Americans leave their jobs is that they don’t feel appreciated. L1-1 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. People Need Praise Good Job! McGraw-Hill-Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

24. Increase their individual productivity. Increase engagement among their colleagues. Are more likely to stay with their current organization. Receive higher loyalty and satisfaction scores from customers. Have better safety records and fewer accidents on the job. L1-2 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Those Who Give and Get Praise: McGraw-Hill-Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

26. 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 Organizational Culture, Socialization, and Mentoring Learning Objectives Chapter Two

27. Costco Markups only 14% Hourly employees $40,000 after 4 years Generous return policy “Costco continues to be a company that is better at serving the club member and employee than the shareholder” Axioms 1. Obey the law 2. Take care of your customers 3. Take care of your employees 4. Practice the intelligent loss of sales (SKUs

28. Organizational culture shared values and beliefs that underlie a company’s identity. 2-1 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Organizational Culture McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

29. A Conceptual Framework for Understanding Organizational Culture McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

30. 2-3 Layers of Organizational Culture McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Source: Adapted from E H Schein, Organizational Culture and Leadership, 2 nd ed (San Francisco: Jossey-Bass, 1992), p 17. Observable Artifacts Espoused Values Basic Underlying Assumptions McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

31. 2-4 Figure 2-2 Four Functions of Organizational Culture McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Organizational culture Sense-making device Organizational identity Social system stability Collective commitment McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

32. 2-5 Table 2-1 Types of Organizational Culture McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. High priority on constructive interpersonal relationships, and focus on work group satisfaction AffiliativeConstructive Participative, employee- centered, and supportive Humanistic- encouraging Constructive Value self-development and creativity Self- actualizing Constructive Goal and achievement oriented AchievementConstructive Organizational Characteristics Normative Beliefs General Types of Culture McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

33. 2-6 Table 2-1 Types of Organizational Culture (Cont.) McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Negative reward system and avoid accountability AvoidancePassive- defensive Nonparticipative, centralized decision-making, and employees do what they’re told DependentPassive- defensive Conservative, bureaucratic and people follow the rules ConventionalPassive- defensive Avoid conflict, strive to be liked by others and approval oriented ApprovalPassive- defensive Organizational Characteristics Normative Beliefs General Types of Culture McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

34. 2-7 Table 2-1 Types of Organizational Culture (Cont.) McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Perfectionistic, persistent and hard-working PerfectionisticAggressive- defensive Winning is valued and a win- lose approach is used CompetitiveAggressive- defensive Nonparticipative, take charge of subordinates and responsive to superiors PowerAggressive- defensive Confrontation and negativism awarded OppositionalAggressive- defensive Organizational Characteristics Normative Beliefs General Types of Culture McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

35. What researchers have learned Constructive culture is positively related with employee behavior and attitude (DUHHHH) People felt more comfortable in companies whose culture matched their personal value systems (Double Duhhhh) No correlation between company culture and financial performance (Whatttt?) Flexible cultures more likely to yield higher financial performance (Interesting) 7 of 10 mergers and acquisitions fail to meet their financial promise (can culture be an issue? HP/Compaq)

36. 1. Formal statements of organizational philosophy, mission, vision, values, and materials used for recruiting, selection and socialization 2. The design of physical space, work environments, and buildings 3. Slogans, language, acronyms, and sayings 4. Deliberate role modeling, training programs, teaching and coaching by managers and supervisors 5. Explicit rewards, status symbols (e.g., titles), and promotion criteria 6. Stories, legends, and myths about key people and events 2-8 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Embedding Organizational Culture McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

37. 7. The organizational activities, processes, or outcomes that leaders pay attention to, measure, and control 8. Leader reactions to critical incidents and organizational crises 9. The workflow and organizational structure 10. Organizational systems and procedures 11. Organizational goals and the associated criteria used for recruitment, selection, development, promotion, layoffs, and retirement of people 2-9 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Embedding Organizational Culture (Cont.) McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

38. HR is the keeper of: Selection Socialization Training and Development Evaluation Systems L2-1 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. HR Embeds Organizational Culture Culture McGraw-Hill-Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

39. HR Benefits when: The founder’s personality is charismatic, vibrant, honest and ethical Leonard Gentine of Sargento Foods: after his death, the family keeps his spirit alive through his image and presenting a Founder’s Ring to employees best displaying Sargento culture Charles Schwab believed that employees should follow the company’s values or be fired: his own son was fired after giving investment advice: a no-no in Schwab culture L2-2 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Embedding a Culture Based on a Founder’s Personality McGraw-Hill-Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

40. L2-3 Embedding a Culture Based on a Founder’s PersonalityPersonality McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. HR is challenged when: The founder is involved in scandal or engages in questionable public activity Henry Ford stepped down from the company and got involved in politics and anti-Semitism Martha Stewart carefully crafted her brand based on her image as a wholesome homemaker only to be convicted of securities fraud McGraw-Hill-Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

41. L2-4 HR and Employee Ownership McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. HR builds employee ownership of culture: Peg employee recognition to the corporate culture. Connect culture to the bottom line. Emphasize the company’s history. Communicate constantly with all levels of employees. Our Culture McGraw-Hill-Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

42. L2-5 Application of Primary Embedding Mechanisms at Enron McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Embedding Mechanism: What leaders pay attention to, measure and control on a regular basis Application at Enron: Wanted employees to focus on the bottom line A former employee said Jeffrey Skilling was a leader driven by money “Skilling would say all that matters is money. You buy loyalty with money” McGraw-Hill-Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

43. L2-6 Application of Primary Embedding Mechanisms at Enron (Cont.) McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Embedding Mechanism: How leaders react to critical incidents and organizational crises Application at Enron: Defended a culture that valued profitability, at the expense of everything else Shifted the blame and pointed fingers Fired those it could not lay blame on Covered up any evidence of problems or wrongdoing McGraw-Hill-Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

44. 2-10 Figure 2-3 A Model of Organizational Socialization McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Phases Perceptual and Social Processes 1.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 © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

45. 2-11 Figure 2-3 A Model of Organizational Socialization (Cont.) McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Phases Perception and Social Processes 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 © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

46. 2-12 Figure 2-3 A Model of Organizational Socialization (Cont.) McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Phases Perception and Social Processes 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 © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

47. Examples of Socialization Good Bad

48. 2-14 Table 2-2 Socialization Tactics McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Sequential: fixed progression of steps that culminate in the new role; Random: ambiguous or dynamic progression Sequential vs. Random Formal: Segregating newcomer from regular organization members; Informal: not distinguishing between newcomer and experienced members Formal vs. Informal 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 DescriptionTactic McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

49. 2-15 Table 2-2 Socialization Tactics (Cont.) McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 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 Serial: newcomer is socialized by an experienced member; Disjunctive: does not use a role model Serial vs. Disjunctive Fixed: provides a timetable for the assumption of the role; Variable: does not provide timetable Fixed vs. Variable DescriptionTactic McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

50.  Mentoring is the process of forming and maintaining developmental relationships between a mentor and a junior person 2-16 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Mentoring and Functions of Mentoring 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 © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

51. 1. Become the perfect protégé 2. Engage in 360-degree networking 3. Commit to assessing, building, and adjusting the mentor network 4. Develop diverse, synergistic connections 5. Realize that change is inevitable and that all good things come to an end 2-18 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Skills & Best Practices: Building an Effective Mentoring Network McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.