1. FS10321: Business Management
Week #3:
Chapter 5: (Finish) Organizing
Chapter 6: Staffing
Chapter 7: Change, Stress, And Innovation

2. Types of Organizational Authority
Line authority
Direct the work of operative employees
Staff authority
Support, assist, and advise the holders of line authority
EXHIBIT 5.3

3. Centralization Where in org. is decision-making authority?
More centralized
Decisions are made at higher levels
Decentralized
Decisions can be made at lower levels

4. Mechanistic versus Organic Organizations
Rigid hierarchical relationships
Fixed duties
Many rules
Formalized communication channels
Centralized decision authority
Taller structures
Collaboration (both vertical and horizontal)
Adaptable duties
Few rules
Informal communication
Decentralized decision authority
Flatter structures
EXHIBIT 5.7

5. Which is better? Larger size leads to more mechanistic
Up to 2,000 employees
Changing environment: More organic needed
Structure follows strategy!

6. Organization Culture A system of shared meaning
Determines, mostly, how employees act
Shared values are shown in cultural elements:
Stories, rituals, material symbols, and language unique to the organization
Results from the interaction between:
The founders’ biases and assumptions
What initial employees learn from experiences

7. Chapter 6
Staffing

8. Human Resources Management (HRM)
Getting, training, motivating, and keeping competent employees
Balancing employee supply with employee demand.
Matching the talents and skills with requirements
Creating a high performance work environment
Meeting employees’ pay and benefits needs
Often internal, can be outsourced

9. Employment Planning Right number and kinds of people
Right places at the right time
Help organization achieve goals
Steps:
Assess current human resources.
Assess future human resources needs.
Developing a program to meet those needs.

10. Job Analysis Components
Job description
Tasks, duties and responsibilities that the job entails
Job specification
Knowledge, skills, and abilities required of the job holder

11. Downsizing Options Firing Layoffs Attrition Transfers
Reduced workweeks
Early retirements
Job sharing
EXHIBIT 6.4

12. Recruitment And Selection
The process of locating, identifying, and attracting capable applicants
Selection process
The process of screening job applicants to ensure that the most appropriate candidates are hired

13. Traditional Recruiting Sources
Internal searches
Advertisements
Employee referrals
Public employment agencies
Private employment agencies
School placement
Temporary help services
Employee leasing and independent contractors
EXHIBIT 6.3

14. Selection Devices Written tests Performance-simulation tests
Intelligence, aptitude, ability, interest
Out of favor in mid-20th century
Used more often now
Performance-simulation tests
Based on actual job behaviors
Work sampling and assessment centers

15. Selection Devices Interviews Realistic job preview (RJP)
Subject to biases
Effective if conducted correctly
Realistic job preview (RJP)
Positive and negative info about job, company
During the job interview

16. Potential Biases in Interviews
Prior knowledge about the applicant
Interviewer’s stereotype of a good applicant.
Favoring those who share own attitudes.
Order in which applicants are interviewed
Order in which information is gathered
Negative information is given unduly high weight.
Decision made within first 4-5 minutes
May forget much of the content within minutes

17. Employee Orientation Orientation Objectives of orientation
Introduce new employee to job & organization
Objectives of orientation
Reduce initial anxiety new employees feel
Familiarize new employees
Job
Work unit
Organization as a whole
Facilitate transition from outsider to insider

18. Employee Training Learning experience
Seeks a relatively permanent change
Ability to perform on the job improves.
Changes
What employees know
Skills
How they work
Attitudes toward jobs, co-workers, managers, organization.

19. On-the-Job Training Methods
Job rotation
Lateral transfers to learn variety of tasks
Understudy assignments
Learn directly from experienced person

20. Off-the-Job Training Methods
Classroom lectures
Films and videos
Simulation exercises
Vestibule training
Learn on same equipment, but simulated environment

21. Performance Assessment
Performance management system
Establishing performance standards
Evaluating performance
Objective human resource decisions
Provide documentation to support actions.
Adjective rating scales
Rating each job factor on an incremental scale.
360-degree appraisal
Seeks feedback from a variety of sources
MBO

22. When Performance Falls Short
Possible performance impediments
Mismatched skills
Inadequate training
Personal problems
Discipline
Actions taken to enforce standards and regulations
Warnings
Suspensions
Termination

23. Compensation And Benefits
Compensation administration
Determining a cost-effective pay structure
Attract and retain competent employees
Provide an incentive for them to work hard
Ensure that pay levels will be perceived as fair
Factors influencing pay levels
Employee’s job
Kind of business
Environment surrounding the job
Geographic location
Employee performance levels and seniority
Company compensation philosophy

24. Benefits Employee benefits Types of benefits
Nonfinancial rewards, to enrich employees’ lives
Types of benefits
Social Security
Workers’ and unemployment compensations
Paid time off from work
Life and disability insurance
Retirement programs
Health insurance
ESOP (Employee Stock Option Plan)

25. Sexual Harassment More than 15,000 complaints each year
20% of women, 7% of men
Can be very expensive
Estimated to be largest financial risk faced
Can lose significant stock value
Perhaps most important, lowers productivity

26. Sexual Harassment Anything that Such as:
Creates intimidating, offensive, or hostile environment;
Unreasonably interferes with individual’s work; or
Adversely affects employment opportunities.
Such as:
Sexually suggestive remarks
Unwanted touching and sexual advances
Requests for sexual favors
Other verbal and physical conduct of a sexual nature

27. Sexual Harassment Protecting the organization
Educate employees about sexual harassment
Foster sensitive environment
Have sexual harassment policy in place
Enforced fairly
Take action on the first instance of a complaint

28. Change, Stress, and Innovation
Chapter 7
Change, Stress, and Innovation

29. In Search of Excellence
Tom Peters and Robert Waterman
Studied “Excellent” companies
Found eight consistent attributes:
A Bias for Action
Close to the Customer
Autonomy and Entrepreneurship
Productivity through People
Hands-on, Value-driven
Stick to the Knitting
Simple Form, Lean Staff
Simultaneous loose-tight Properties.

30. …Within a few years, some “excellent” companies weren’t so excellent…
One Problem…
…Within a few years, some “excellent” companies weren’t so excellent…
What happened?

31. What Is Change? Alteration of A constant force
Environment
Structure
Technology
People
A constant force
An organizational reality
An opportunity or a threat

32. Forces For Change External forces Internal forces Competition
Laws and regulations
New technologies
Labor market shifts
Cycles in the economy
Social change
Internal forces
Strategy modifications
New equipment
New processes
Workforce composition
Restructured jobs
Compensation and benefits
Labor surpluses and shortages
Employee attitudes

33. Why People Resist Change
EXHIBIT 7.3

34. Reducing Resistance to Change
TECHNIQUE WHEN USED
Education and When resistance is due to misinformation communication
Participation When resisters have the expertise to make a contribution
Facilitation and When resisters are fearful and anxiety-ridden support
Negotiation Necessary when resistance comes from a powerful group
Manipulation When a powerful group’s cooperation and an endorsement is is needed
Coercion When a powerful group’s endorsement is needed
EXHIBIT 7.4