2. 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

3. 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
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4. 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.)
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5. 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.
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6. 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.
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7. 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
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8. 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
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9. 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
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10. 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
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11. 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.
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12. 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
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13. 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
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14. 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
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15. 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
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© 2005 The McGraw-Hill Companies, Inc. All rights reserved.

16. 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
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17. Positive Organizational Behavior
1-15
Positive Organizational Behavior (POB) the study and improvement of employees’ positive attributes and capabilities
McGraw-Hill/Irwin
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18. 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
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19. 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
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20. 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
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