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Classroom Notes & Test Prep MANA 6332
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Organizational Behavior amp Management 12102014 Effective Presentations preso expectations for group project Follows slides from Lecture Folder on Blackboard Groups will give formal 2530 minute presentation on a current issue in Org Behavior or HR Management worth 30 points Prof prefers PowerPoint for presentations BE TIMELY manage time effectively you will lose points if you run too long or too short Dress appropriately err on the side of more conservative On slides be consistent make sure it s readable no typos avoid distractions Any typos or misspellings obvious mistakes will result in losing points Engagement 0 Verbal don t use verbal fillers you know basically um uh be conversational don t read your slides discuss them with the class tone watch your volume be loud enough to be heard but not overly so 0 Nonverbal eye contact is critical Movement amp hands should be natural Intro to Org Behavior Robbins Chapter 1 Follows slides under OB Chapter 1 Using intuition with systematic study Page 3 0 Using people s gut feelings combined with the results of study to predict behavior 0 Evidence Based Management bases decisions on the best available scienti c evidence Contingency variables are the situational conditions which allow us to predict some behavior cultural mores for example quotthumbs upquot means different things in diff countries Challenges in OB are covered extensively in Pages 513 Three Levels of OB Analysis Individual Group amp Organization Intro to HR Management Jackson Chapter 1 0 One major shift in recent times the diversi cation of the stakeholders we now recognize many more stakeholders especially in OampG page 5 amp Exhibit 11 0 Organizational Members Owners amp Investors Society Customers Other Organizations 0 The goal is winwin situations HRM can create synergies from the diverse concerns of various stakeholders keeping the entity pro table while also protecting corporate reputation for example 0 The external or business environment can also affect the framework page 14 as well as internal factors 0 Things that are important in HR right now 0 O O O Teams Multicultural workforces Measurement and metrics Ethics Globalization OOOOO Team Dallas Investigate public company mergers and the negotiations that were made public prior to announcements and how that release has affected the neganUons Baker Hughes amp Halliburton GE amp Alston Siemens amp DresserRand Individuals DecisionMaking and Staffing Diversity Robbins Chapter 2 follows slides OB Chapter 2 Surface level diversity re ects demographics differences in age racegender Deeper level diversity differences in personality and attitudes and values more important in the long run Forms of Discrimination blatant discriminatory policies amp procedures also includes sexual harassment intimidation mockery and insults exclusion incivility Exhibit 21 Surface level biographical characteristics age gender race disability length of service 0 Age mandatory retirement is outlawed 0 Gender few differences in women s performance vs men s performance women in maledominated jobs are less likeable working mothers prefer ex schedules women more likely to turnover and be absent 0 Race amp Ethnicity Individuals favor colleagues of the same race Caucasians are usually against Affirmative Action African Americans tend to fare worse than Caucasians in employment decisions 0 Disability ADA requires employers to make reasonable accommodations Other biographical characteristics tenure religion sexual orientation gender identity Ability an individual s current capacity to perform the various tasks in a job 0 Intellectual abilities needed to perform mental activities Exhibit 22 Dimensions of Intellectual ability El Number aptitude ability to quickly and accurately do arithmetic Verbal comprehension ability to understand what is read or heard Perceptual speed ability to identify visual similarities and differences quickly and accurately Inductive reasoning ability to identify a logical sequence in a problem and then solve Deductive reasoning ability to use logic and assess implications of an argument Spatial visualization ability to imagine an object if its position in space changes Memory ability to retain and recall past expedences Also called cognitive ability GMA General Mental Ability 0 Physical Exhibit 23 Nine Basic Physical Abilities Strength factors El El El Dynamic strength ability exert force repeatedly Trunk strength ability to exert force using core Static strength ability to exert force again external objects Explosive strength ability to expend a maximum of energy in or a series of acts Flexibility factors El El Extent exibility ability to move the trunk and back muscles as far as possible Dynamic exibility ability to make rapid repeated exing movements Other factors El El Body coordination Balance n Stamina Implementing Diversity Management Strategies 0 To attract underrepresented groups Target recruitment ensure hiring and promotion is bias free amp develop a positive diversity climate Diversity in Groups will both help amp hurt leverage differences for superior performance transformational leaders are more effective in managing diverse teams Effective Diversity Programs 0 Teach managers about the legal framework and encourage fair treatment 0 Show managers how a diverse workforce can better serve customers 0 Foster personal development practices that bring out skills and abilities of all workers Implications Biographical differences have minimal effects on performance employment decisions should re ect their ability and motivations of employee diversity requires organizational buyin for culture oneshot diversity programs are not as effective as multiple levels Summary 0 2 major forms of diversity Surface level diversity differences in race age gender biographical characteristics Deeper level diversity differences in personality and values 0 Identify key biographical characteristics and how they relate to OB Age performance declines with age but mandatory retirement is outlawed Gender no discernible difference in performance Race individuals slightly favor colleagues of their own race different attitudes towards affirmative action whites fare better in employment decisions Disability ADA requires employers to make reasonable accommodations for people with physical or mental disabilities 0 Intellectual ability the abilities to perform mental activities thinking reasoning and problem solving important in identifying people for particular jobs as well as ensuring they have the general mental ability to perform well increasingly important in service industry 0 Physical ability 9 basic physical abilities to perform physically demanding work 0 To manage diversity effectively Teach managers about legal framework for equal employment and encourage fair treatment of all people regardless of demographic characteristics Teach managers how a diverse workplace can better serve diverse customers Foster personal development practices that bring out skills and abilities of all workers Attitudes amp Job Satisfaction Robbins Chapter 3 Attitudes are evaluative statements that re ect how you feel 0 Cognitive evaluation 0 Affective feeling 0 Behavorial action 0 Exhibit 31 0 Attitudes follow Behavior 0 Cognitive dissonance any inconsistency between two or more attitudes or between behavior and attitudes Individuals seek to minimize dissonance Desire to reduce dissonance driven by importance of elements creating the dissonance degree of in uence you have over the elements and any rewards involved in dissonance 0 Behavior follows Attitudes O O The most powerful moderators of the attitudesbehavior relationships are Importance Correspondence to behavior Accessibility Social pressures Direct personal experience Knowing attitudes helps predict behavior MajorJob Attitudes O O O 0 Job Satisfaction can use either single global rating or summation score method Job Involvement Psychological empowerment Organizational Commitment o Perceived Organizational Support 0 Employee Engagement 0 Implications Job satisfaction is global people who are satis ed are better employees Exhibit 33 What causes Job Satisfaction o The job itself 0 Social component how people view the social context of their work 0 Pay not correlated after a certain level 0 Others advancement supervision coworkers Consequences of dissatisfaction Exit Voice Neglect or Loyalty 0 Active exit or voice 0 Passive neglect or loyalty Bene ts of Satisfaction Betterjob and organizational performance 0 Organizational Citizenship Behaviors discretionary behaviors that contribute to organizational effectiveness but are not part of the employees formal job description 0 Counterproductive Work Behaviors absenteeism turnover deviance CWBs Implications Attitudes give warnings of potential problems and in uence behavior 0 Focus on making the work challenging and interesting more autonomy helps 0 High pay is not enough to create satisfaction Example Exam Question What are the outcomes of job satisfaction How do those apply to your position Name 3 things job satisfaction is related to and apply it to your work and explain The positive outcomes of job satisfaction are betterjob and organizational performance and better organizational citizenship behaviors discretionary behaviors that contribute to organizational effectiveness that are not part of the employees job description The negative outcomes to job dissatisfaction are exiting vocaizing for change neglect absenteeism turnover and loyalty while waiting for change In my previous job I became dissatis ed with the lack of responsibility and challenging work assignments which led rst to increased absenteeism and nally prompted me to leave In my next job when I became frustrated with the lack of challenging assignments l voiced my dissatisfaction and was given an additional area of responsibility with increased exibility in how I executed that project This led to the implementation of a new compliance program for which I volunteered to personally deliver trainings in each company of ce an example of organizational citizenship because training was outside my formal job description and traditionally handled through HR My job satisfaction was related directly to my absenteeism l was never absent on an unscheduled day in my new job my employee engagement I requested additional assignments and completed additional projects outside my area and my organizational commitment although I had offers to leave for increased pay I chose to stay with a company that valued my contribution and rewarded me with additional responsibility 0 Summary 0 3 components of an attitude cognitive evaluative someone else got a promotion and l deserved it affective feeling I dislike my supervisor Behavorial active I m going to nd anotherjob o Attitudes amp Behavior Individuals try to minimize cognitive dissonance between attitudes amp behavior and inconsistency is uncomfortable The desire to reduce cognitive dissonance is dependent on 3 factors a The importance of the elements causing the dissonance n The degree of in uence we have over those elements a The rewards of dissonance whether high rewards accompany high dissonance which then reduces the tension 0 MajorJob Attitudes Job satisfaction a positive feeling about a job Job involvement degree to which you identify with your job and how that relates to self worth Organizational commitment how much you wish to remain with the organization Perceived organizational support how much you think the company will be exible or help you how they value your contribution and care about you Employee engagement the individual s involvement with and enthusiasm for the job 0 Job satisfaction a positive feeling about a job resulting from O 0 an evaluation of its characteristics Can be measured using single global rating or summation method Main causes of job satisfaction Job itself Social component how people view the work Pay Others advancement supervision coworkers 4 employee responses to dissatisfaction Exit Voice Neglect Loyalty Emotions amp Moods Robbins Chapter 4 o Emotions are a new study the myth of rationality kept them from being analyzed because the protocol was to damper emotions in the workplace Affect broad range of feelings includes both moods and emotions O O O O Moods cause is general and unclear lasts longer than emotions more general and can be hidden better tend to be positive or negative Emotions brief caused by speci c event Exhibit 41 Exhibit 42 Structure of a Mood Functions of Emotions O 0 Help us understand the world around us Can also affect our ethics in a situation 0 Sources of Emotions amp Moods 0 0000000 Day of the week Sunday amp Monday are lowest end of week is highest Time of the day Weather no impact Stress increased stress worsens moods Social activities increase positive moods Lack of sleep increases negative moods Exercise increases positive moods Age older people have less negative moods 0 Gender women show greater emotional expression could be due to socialization Emotional Labor 0 When people have to express emotions that they re not feeling dissonance in emotions when you re acting happy for customers but you re actually sad Causes stress 0 Felt v Displayed emotions Felt actual emotions Displayed emotions learned emotions that the organization required Emotional intelligence good test question 0 3 factors of emotional intelligence How you perceive emotions in the self and others Understanding the meaning of the emotions and implications Can you regulate your emotions Emotional Regulation 0 Identifying and modifying the emotions you feel 0 Change emotions by thinking about more pleasant things OB Applications of Emotions amp Moods 0 Selection consider El as a factor in hiring for jobs that demand a high degree of social interaction 0 Decisionmaking positive emotions can increase problem 0 solving 0 Creativity positive mods and feedback may increase creativity 0 Motivation 0 Leadership emotions convey messages more effectively 0 Negotiation emotions impair performance 0 Customer Services customers catch emotions from employees contagion 0 Job attitudes emotions at work get carried home 0 Deviant workplace behaviors negative emotions are more likely to engage in deviant behavior 0 Safety amp injury at work moods tend to contribute to injuries How can managers in uence moods 0 Humor to lighten the mood 0 Small tokens of appreciation 0 Stay in a good mood lead by example 0 Hire positive people 0 Implications Understand the role of emotions and moods that they do affect workplace behavior be able to recognize these in the workplace Personality amp Values Robbins Chapter 5 0 Personality the sum total of ways in which an individual reacts to and interacts with others Example Exam Question describe 3 and apply them to yourself Exhibit 51 Selfreport surveys most common but prone to error 0 Re ects heredity and environment but genetics tends to explain the most Aging does not affect personality 0 MeyersBriggs most widely used personalityassessment instrument in the world 0 Other Personality Traits Core Self Evaluation people who see themselves as capable and effective Machiavellianism pragmatic emotionally distant believes the ends justify the means Narcissism grandiose view of themselves arrogance sense of selfentitlement O O Values basic conviction of what you believe 0 Value systems represent a prioritizing of individual values by content and intensity 0 Hierarchy tends to be stable 0 Values are the foundation for attitudes motivation and behavior 0 In uence perception and cloud objectivity Personality Job Fit Holland s Hexagon 0 Exhibit 54 0 Job satisfaction and turnover depends on the personality PersonOrganization Fit 0 More important that employee s personalities t with organizational culture than any otherjob characteristic 0 The t predicts job satisfaction organizational commitment and turnover Values differ across cultures 0 2 frameworks for assessing culture Hofstede amp GLOBE o Hofstede 5 factors Power distance do you see natural difference in people Are people inherently unequal Individualism vs Collectivism Masculinity v Femininity Uncertainty Avoidance risk tolerance Longterm vs Shortterm Orientation o GLOBE Extension of Hofstede ongoing study with 9 factors Main difference GLOBE added dimensions such as humane orientation and performance orientation Assertivenenss Future Orientation Gender differentiation Uncertainty Avoidance Power distance IndividualismCollectivism lngroup coectivism Performance Orientation Humane Orientation 0 Implications Personality evaluate the job group and organization to determine the best t Big ve is best to use for t 0 Summary 0 Personality sum total of ways in which an individual reacts to and interacts with others We measure personality through self report surveys and tests that evaluate answers on a series of factors 0 MB Type Indicator most widely used people are put into one of 16 categories the variants of which are Extrovertlntrovert SensingIntuitive ThinkingFeeling JudgingPerceiving It s used widely however it lacks shades of gray a person must be either one or the other of the 4 major types It s valuable for self awareness but less effective for job selection 0 Big Five Personality Traits Extraversion comfort with relationships Agreeableness propensity to defer to others Conscientiousness measure of reliability Emotional stability ability to withstand stress Openness to explore range of interests and fascination with novelty Studies have shown great correlation between high job performance and high levels of conscientiousness less negative thinking fewer negative emotions high emotional stability means better interpersonal skills and extroversion is related to more creative problem solving and autonomous work agreeableness means more compliant and conforming better likes and openness shows more drive and discipline better organization and planning 0 Other traits relevant to OB Perception and Individual DecisionMaking Robbins Chapter 6 Perception the world as perceived by an individual is their reality 0 Factors in uencing perception 0 Person situation what is being perceived o Attribution theory suggests perceivers try to attribute the observed behavior to a type of cause either internal or external Internal this person s behavior is the individual s control and choice External the person is forced into the behavior by the outside factors and causes 0 Determinants of Attribution o Distinctiveness if an individual displays different behaviors in different situations the uniqueness of the act 0 Consensus does everyone who faces a similar situation respond in the same way 0 Consistency does the person respond the same way over time 0 Determination of Attribution Exhibit 61 0 Attribution errors Fundamental attribution overestimate internal underestimate external factors Selfserving bias individuals overestimate their own in uence on successes and overestimate the external in uences on their failures Shortcuts used in judging others 0 Selective perception a perceptual ltering process based on interests background and attitude 0 Halo effect drawing a general impression based on a single characteristic 0 Contrast effect our reactions are in uenced by others the context of observation 0 Stereotyping judging someone on the basis of perception of the group in which they belong 0 Link between decisionmaking and perception o Decisionmaking occurs as a reaction to perception o Rational DecisionMaking model this model is seldom actually used Exhibit 62 Assumptions complete knowledge all relevant options are known the decisionmaker seeks highest utility 0 People tend to use bounded rationality we seek solutions that are good enough rather than optimal the acceptable possibility is good enough lt s simpler than rational decisionmaking limited search for easy criteria and a limited review of alternatives and then you pick the good enough one o lntuitive decisionmaking distilled from experience powerful component in decisionmaking o Randomness error believing we can predict the outcome of random events 0 Availability bias basing judgment on information that is readily available 0 Escalation of commitment staying with a decision when there is clear evidence that it is wrong 0 Risk aversion preferring a sure thing over a risky outcome 0 Hindsight bias believing falsely that we could have predicted the outcome of an event after that outcome is already known 0 Example exam question name 3 biases in decisionmaking and describe when you ve done them Ethical frameworks good test question different types of ethics page 92 o Utilitarian provide the greatest good for the greatest number 0 Rights make decisions consistent with fundamental liberties and privileges 0 Justice impose and enforce rules fairly and impartially so that there is equal distribution of bene ts and costs Creativity in decisionmaking 3 component model expertise creative thinking skills task motivation International Differences no global ethical standards exist need organizational level guidance establish ethical principles to follow that are modi ed to re ect local cultural norms Implications each person s perception is their reality need different approaches to decisionmaking enhance your creativity to maximize job performance Summary 0 Perception the world as perceived by an individual is their reality factors that in uence perception Person the individual brings their own perspective Situation the content of the situation Target what is being perceived o Shortcuts used to make judgments about others Selective perception perceptual ltering based on interests background and attitude Halo effect drawing a general impression based on a single characteristic Contrast effects reaction is in uenced by others we have recently encountered Stereotyping judging based on the perception of the group to which they belong o Decisionmaking occurs as a reaction to perception Experiential Exercise 0 Emotional Intelligence Test Recruiting Jackson Chapter 6 Skipped Selection Jackson Chapter 7 0 Personality Tests are a viable selection technique can be used to predict workplace performance Conscientiousness most important selection criteria Example Question If you were hiring what are some criteria you would use and why Work sample is highly valid no adverse impact mental ability highly valid some adverse impact inexpensive structured interview highly valid expensive little adverse impact etc Motivation Concepts Chapter 7 OB Robbins Motivation the process that accounts for an individual s intensity direction and persistence of effort toward attaining a goal Early theories of motivation were needbased Maslow s Hierarchy of Needs Theory needs have 5 types O 0000 O Selfactualization higher order satis ed internally Esteem Social Safety Physiological lower order satis ed externally Exhibit 71 McGregor s Theory X and Theory Y 0 Theory X inherent dislike for work and will attempt to avoid it must be controlled or threatened with punishment 0 Theory Y view work as natural as rest or play will exercise selfdirection and selfcontrol if committed to objectives Herzberg s TwoFactor Theory 0 Hygiene factors will only lead to dissatisfaction satisfaction is on a continuum certain needs will only get you to neutral point but need higher levels to reach past neutral to satis ed 0 See Slide for picture McClelland s Theory of Needs 0 Need for Acheivement nAch drive to excel Preferjobs with personal responsibility feedback intermediate risk 5050 Not necessarily good managers High nPow and low nAff is related to managerial success 0 Need for Power nPow the need to make others behave in a way they would not have behaved otherwise 0 Need for Affiliation nAff the desire for friendly and close interpersonal relationships 0 Contemporary Theories of Motivation 0 SelfDetermination Theory people prefer to have control over their actions so when they feel they are forced to do something they previously enjoyed motivation will decrease 0 Cognitive Evaluation theory proposes that the introduction of extrinsic rewards for work pay that was previously intrinsically rewarding tends to decrease overall motivation o Verbal rewards increase intrinsic motivation while tangible rewards undermine it 0 Job engagement the investment of an employee s physical cognitive and emotional energies into job performance 0 Leads to higher levels of productivity GoalSetting Theory 0 Goals increase performance when the goals are Speci c Difficult but accepted by employees Accompanied by feedback especially selfgenerated feedback 0 Contingencies in goalsetting theory Goal Commitment public goals better Task characteristics simple amp familiar better National culture western culture suits best Self Efficacy or Social Learning Theory 0 Selfefficacy individual s belief that he or she is capable of performing a task 0 Increased by enactive mastery gain experience vicarious modeling see someone else do the task verbal persuasion someone convinces you that you have the skills Arousal get energized about the task Equity Theory employees weigh what they put into a job situation input against what they get from it outcome 0 Most important theory for pay systems inputoutput ratio is only relevant in comparison to others 0 They compare their inputoutcome ratio with the input outcome ratio of relevant others My outputMy input Your outputYour input Equity Theory Forms ofJustice 0 Organizational Justice overall perception of what is fair in the workplace Distributive Justice perceived fairness of outcome Procedural Justice perceived fairness of process used to determine outcome lnteractional Justice perceived degree to which one is treated with dignity of respect Expectancy Theory 3 key relationships 0 Effortperformance perceived probability that exerting effort leads to successful performance 0 Performancereward the belief that successful performance leads to desired outcome 0 Rewardspersonal goals the attractiveness of organizational outcome reward to the individual 0 See Exhibit 77 page 112 Implications for Managers Look beyond needs theories goal setting leads to higher productivity organizational justice is important expectancy theory is powerful but may not be very realistic Good example exam questions What are McClellands 3 types of needs Which are you Why Something on equity theory What are 3 aspects of goalsetting To maximize effectiveness what should goal be Expectancy theory describe 3 aspects Motivation From Concepts to Applications Chapter 8 Motivating by Changing the Work Environment JCM 0 Job characteristics model JCM jobs are described in terms of ve core dimensions good test question describe 3 Skill variety degree to which a job requires a variety of different actions Task identity degree to which a job requires completion of a whole and identi able piece of work Task signi cance degree to which a job affect the lives or work of other people Autonomy degree to which a job provides the worker freedom independence and discretion in scheduling work and determining the procedures in carrying it out Feedback degree to which carrying out the work activities generates direct and clear information about your own performance See Exhibit 81 JCM designed jobs give internal rewards lndividual s growth needs are moderating factors Motivating jobs are autonomous provide feedback have at least one of the three meaningfulness dimensions How can jobs be redesigned 0 Job rotation periodic shifting of an employee from one task to another 0 Job enrichment increasing the degree to which the worker controls the planning execution and evaluation of the work 0 See Exhibit 82 Alternative Work Arrangements 0 Flex time some discretion over when the worker starts or leaves 0 Job sharing two or more individuals split a traditional 40 hour week job 0 Telecommuting Employee Involvement a participative process that uses the input of employees to increase their commitment to the organization s success 0 O O O o 2 types 0 Participative management subordinates share a signi cant degree of decisionmaking power with supervisors Issues must be relevant Employees must be competent and knowledgeable All parties must act in good faith Only a modest in uence on productivity motivation and job satisfaction 0 Representative Participation workers represented by a small group of employees who participate in decisions affecting personnel Works counsel Board membership Redistribute power within an organization Does not appear to be very motivational Rewarding Employees 0 Major strategic rewards decisions What to pay employees How to pay individual employees What bene ts to offer How to construct employee recognition programs 0 What to pay Need to establish pay structure Balance between a lnternal equity the worth of the job to the organization a External equity the external competitiveness of an organization s pay relative to the market 0 How to Pay Variable pay programs Most countries in the world have some aspect of variable pay programs MeritBased Pay pay is based on individual performance appraisal ratings Bonuses rewards employees for recent performance Pro tsharing plans Gainsharing Employee Stock Ownership Plans Employee Recognition Programs 0 In addition to pay there are intrinsic rewards Can be as simple as a spontaneous comment Can be formalized in a program 0 Recognition is the most powerful workplace motivator and the least expensive Implications Allow for individual differences in motivation allow employees to participate in decisions that involve them Pay for performance works link rewards to performance Use speci c goals and feedback Check the reward system for equity Compensation Practices Chapter 10 Jackson HRM Employee Value Propositions total compensation and bene ts package DifferentJobSame Company internal equity the relationship of wages visavis others in the company 1st type of equity that company addresses 0 Create the list for internal equity through job evaluation 3 common ways Simple ranking most valuable to least valuable Classi cation places grades on certain jobs within the organization pay is established by grades I Grades are described in terms of compensable factors aspects of the job that add value education effort KnowledgeSkillsAbilities responsibility working conditions all common compensable factors Point System assigns points to different compensable factors depending on value of factor to the overall organization Different CompanySame Job external equity the relationship of wages visavis others in the same job but at a different company 0 Evaluate external equity through Market Pay Surveys conducted by outside rms and consultants o Comparatio how you determine one person s ratio to the market ie comparatio at 110 means you pay 10 over the market 0 Same CompanySame Job Employee or Individual Equity the relationship of wages visavis another in the same job at the same company 0 Pay differentials between people are based on seniority and performance 0 This is accomplished through a Merit Pay Matrix Typical performance system rates from 15 poor needs improvement satisfactory good outstanding a Poor no raise possibly terminate a Needs Improvement no raise a Satisfactory 3 a Good 7 n Outstanding 10 Then those are put into the pay grade ranges top middle and bottom of range is taken into consideration Pay for Performance Chapter 11 Jackson HRM Design choices for Performancebased pay 0 Recognition Awards noncash modest shortly after milestone event token based on single component 0 Incentive Pay cash announced early to incentivize goal considered bonus can be as much as 100 base pay 0 Merit Pay depends on performance in lumpsum merit it changes to bonus 0 EarningsatRisk Pay sales commissions stock options size can be limitless depends on organizational performance 0 Look at Slides for these plans 0 Issues in Merit Pay 0 Big problem it s forever but lump sum merit awards can alleviate this for companies bonuses in lieu of raises every year save money because of compounding Bene ts Chapter 12 Jackson HRM Good example exam question Different types of mandatory bene ts Historically US has between 35 mandatory bene ts 0 Social Security O O O O Worker s Comp Unemployment Insurance FMLA Family Medical Leave Act unpaid leave Required if you have 15 or more workers HealthcareMedical insurance Obamacare Different types of pension plans 0 0 De ned bene t plans pension bene ts are xed but vary with age and length of service regulated by ERISA penalize employee mobility are being replaced by de ned contribution plans De ned contribution plans contribution is xed payout is variable each employee has separate account 401ks Healthcare insurance plans O 0000 Conventional insurance plans reimbursement after ling HMOs Health Maintenance Organizations PPOs Preferred Provider Organizations Point of Service Plans Consumerdriven plans Health Savings Accounts and high deductibles used to be called Flex Accounts Organizational Structure Chapter 15 Robbins OB Organization Structure de nes how job tasks are formally divided grouped and coordinated Key elements good exam question 0 Work specialization describes the degree to which activities in the organization are subdivided into separate jobs aka division of labor Bene ts greater ef ciency and lower costs Costs human costs when carried too far job enlargement can be solution Departmentalization basis by which jobs are grouped together so that common tasks can be coordinated Common bases function product geography process or customer ie how are your VPs organized Chain of command unbroken line of authority that extends from the top of the organization to the lowest echelon and clari es who reports to whom Authority positional rights Unity of command principle one boss Fewer organizations nd this relevant o Span of control the number of employees a manager is expected to effectively and efficiently direct Determines the number of levels and managers an organization has Trend is towards wider spans of control Wider spans depends on knowledgeable employees affects speed of communication and decisionmaking o Centralization amp Decentralization degree to which decision making is concentrated at a single point in the organization 0 Formalization degree to which jobs are standardized Formal minimum discretion over what is to be done when it is done and how Informal freedom to act is necessary 0 New Design Options Virtual o A small core organization that outsources its major business funcUons 0 Highly centralized with little or no decentralization 0 Provides maximum exibility while concentrating on what the organization does best 0 Reduced control over key parts of the business Leaner Organizations Downsizing o A systematic effort to make an organization leaner by selling off business units closing locations or reducing staff 0 Controversial because of negative effect on employees 0 Impact on organizational performance has been very controversial Forces in uencing Structure 0 Strategy Innovation introduce new offerings organic Cost minimization cost control mechanistic Imitation minimal risk and maximum pro t both 0 Organization Size Bigger becomes more bureaucratic 0 Technology 0 Routine equals mechanistic nonroutine is organic Environment Dynamic environments lead to organic structure 0 Implications Structural relationships impact attitude and behavior structure constrains employee behaviors Good exam questions Name 34 of the elements and apply to your organization Examples of foci for organizations name 3 most applicable to your organization 0 00000000 Efficiency Safety Ethics lnnovann Customerservice High Performance Quality People Positive Organizational Culture Chapter 16 Robbins OB A system of shared meaning held by members that distinguishes the organization from other organizations the norm what is acceptable 0 7 Characteristics of Organizational Culture 0 O O 0 Innovation and risk taking Attention to detail Outcome orientation are the results or means more important People orientation employee or customer rst Team orientation o Aggressiveness 0 Stability Culture v Job Satisfaction Culture is an organizational level descriptive term climate is an individual s perception of the culture Dominant culture expresses the core values that are shared by a majority of the organization s members Subcultures develop in large organizations to re ect common problems situations or experiences of members 0 Mirror the dominant culture but may add to or modify the core values Strong culture the organization s core values are both intensely held and widely shared 0 Have greater in uence on the behavior of members 0 Increase cohesiveness 0 Result in lower employee turnover Culture s 5 Basic Functions 0 De nes boundaries 0 Conveys a sense of identity 0 Generates commitment beyond oneself o Enhances social stability 0 Sensemaking and control mechanism Culture as a Liability 0 Barrier to change culture is slow to change even in a dynamic environment 0 Barrier to diversity culture seeks to minimize diversity can embed prevalent bias and prejudice o Barrier to acquisitions and mergers most mergers fail due to cultural incompatibility Creating Culture 0 Ultimate source of an organization s culture is its founders o Founders create culture in three ways By hiring and keeping those who think and feel the same way they do Indoctrinating and socializing those employees to their way of thinking and feeling Acting as a role model and encouraging employees to identify with them 0 Keeping a Culture Alive 0 Selection 0 Top Management 0 Socialization help new employees adapt to the existing culture 0 How Employees Learn Culture 0 Culture is transmitted to employees through 0 Stories provide explanations o Rituals reinforce key values 0 Material symbols convey importance 0 Language identify and segregate members 0 Creating an Ethical Organizational Culture 0 Strong culture with high risk tolerance low to moderate aggressiveness and a focus on means as well as outcomes 0 Creating a Positive Organizational Culture 0 A positive culture is one that emphasizes building on employee strengths 0 Implications Hire people who t but be careful of discrimination issues 0 Good exam questions Name 3 aspects of culture and apply them to your organizational culture HR Strategy Chapter 2 Jackson HRM Strategic Goals all are contingency theories there is no one perfect option it depends on organization 0 Should re ect the purpose of the organization as a whole 0 Stakeholder View now dominant way to view strategic goals is a broader view than previous notions the stakeholder views drive strategic goals rather than just please shareholders 0 Owners amp Shareholders pro ts growth Customers Employees Other organizations unions JV partners suppliers etc Society NGOs 0 Government 0 ln OampG everyone is a stakeholder everyone is a customer and the biggest stakeholder is Government 0 Sustainable Competitive Advantage trying to gain a long term advantage over competitors ie by doing something inimitable HR is one resource you can manipulate for this SWOT Analysis Strengths Weaknesses Opportunities Threats analyzes internal and external business environment 0 SW internal environment organization size structure employees unions technology ownership customers leadership debt structure 0 OT external environment legal political economic societal values technology available unions competitors suppliers labor market 0 Strategy different kinds within same organization driven by internal and external environments 0 Corporate what overarching strategy affects all aspects of business ie do we create a horizontal or vertical monopoly Do we fully integrate our business Do we want to be the lowest cost provider 0 Business most common classi cations of strategies are Miles amp Snow Prospectors rst movers Analyzers second movers wait to see the success or failure of the prospectors more patient risk adverse Defenders goal is stability maintain status quo Reactors reactive follow and aren t proactive o Other business strategy classi cations from Porter low cost breadth niche quality these are really ALL differentiation strategy differentiating yourself from the competitors 0 Functional Strategies for each business function you have different strategies overarching strategies within a function that are also aligned with corporate and business strategies 0 HR compensation strategy is key staf ng strategy performance management strategies training strategy when these subfunctions are aligned this is horizontal t OOOOO 0 Whole notion is of FIT the strategies must align vertically but also align externally with your environment all of these functions and subfunctions drive your practices Legal Environment Chapter 3 Jackson HRM Major legal issue in HR is Discrimination Equal Pay Act 1963 basic cannot discriminate based on gender for the same work also laid out compensable factors that make the job the same or different 0 Civil Rights Act 1964 Title VII any conditions of employment selection promotion compensation bene ts cannot discriminate based on gender includes pregnancy race religion national origin color 0 Created EEOC o Resulting court interpretations expanded the original legislation Courts found 2 types of discrimination o Disparate treatment blatant discrimination ie I don t hire you because you re a woman treat people differently because they re in a protected class with intent o Disparate impact adverse impact the nondiscriminatory actions result in discriminatory impact against a protected class defend against it by showing the decision is jobrelated 45ths rule evidence of disparate impact if your choices are affecting at least 45ths of a protected class in a random sampling then the impact is discriminatory 0 Reverse Discrimination is discrimination can t discriminate either way can t have quotas SCOTUS said it can be one factor but not major factor Sexplus discrimination can t have separate rules for different categories 0 Exceptions o Authenticity 0 Privacy 0 Bona de occupational quali cation BFOQ must show it s a business necessity Sexual Harassment also came from Title VII 0 Quid pro quo must be done by a supervisor sexual favor becomes condition to employment decision purely illegal o Hostile work environment must meet criteria Sexual in nature Unwanted Pervasive or severe Lilly Ledbetter Act woman sues 20 years later that she was paid substantially less than men every paycheck is the act of discrimination Age Discrimination Act only for those over 40 can t force retirement exceptions for public safety ie airlines 0 Disability ADA cannot discriminate on basis of disability 0 Reasonable accommodation if employer can make reasonable accommodations to allow employee to overcome the disability then employer must accommodate unless it s an undue hardship Con ict and Negotiation Chapter 14 Robbins OB 0 Functional vs Dysfunctional Con ict 0 Functional improves group performance 0 Dysfunctional hinders group performance 0 Assessing Focus of con ict Task work content and goals Relationship interpersonal Process how the work is done 0 Stage 1 Potential Opposition 0 Communication barriers exist too much or too little 0 Structure group size age diversity organizational rewards goals group dependency 0 Personal Variables personality types emotionality Implications Set ambitious goals pay little attention to initial offers research your opponent address the problem not personalities emphasize winwin and be creative 0 Negotiation Tips 0 Going First seller historically goes rst 0 Give it a try lots of things are negotiable o Likeability if people like you they will do more for you Similarities Use people s names Positive Characteristics Attractiveness Communication Chapter 11 Robbins OB The Communication Process 0 Sender sends the message through a channel and message is received and decoded by the Receiver 0 Social Media has exponentially increased the methods or channels of communication 0 Noise interrupting the communication can be many things ads psychological overload too many messages at once Oral Communication 0 Pros Speed feedback simple to correct 0 Cons potential for distorted message when passed through a number of people Written Communication 0 Pros tangible amp veri able records can be stored for an inde nite period of time physically available for later reference more likely to be thoughtout logical and clear 0 Cons Time consuming lack of feedback may not be read Nonverbal Communication 0 Body language conveys the extent of affinity for another the relative perceived status between a sender and receiver 0 Meaning changes with intonation facial expression physical distance Formal Small Group Networks 0 Chain gives best accuracy 0 Wheel facilitates leadership development 0 All channel provides member satisfaction The Grapevine o Emerges when situation is important ambiguity exists situation causes anxiety 0 3 Characteristics Not controlled by management Perceived as being more believable and reliable and often is Largely used to serve selfinterest of those willing to communicate Email Limitations 0 Easy to misinterpret 0 Should not be used for negative messages 0 Overused and overwhelms 0 People are emotionally uninhibited 0 Privacy concerns Instant Messaging amp Text Messaging o Essentially realtime o Inexpensive 0 Good for short messages 0 Some nd it intrusive and distracting 0 May be inappropriate for formal business messages Videoconferencing o Permits employers to conduct interactive meetings without being physically in the same room 0 Conserves travel funds 0 Becoming more accessible as costs drop Managing Information 0 Dealing with information overload 0 Limiting information can increase productivity Barriers to effective Communication 0 Filtering 0 Selective perception 00000 0 Information overload Emotions Language SHence Communication apprehension Lying Global Implications 0 00000 Cross cultural communications barriers Assume differences until similarity is proved Emphasize description rather than interpretation or evaluation Use numbers rather than words Practice empathy Treat your interpretation as a working hypothesis Power amp Politics Chapter 13 Robbins OB 0 Power the capacity that A has to in uence the behavior of B so that B acts in accordance with A s wishes O 2 facets Potential power does not need to be actualized to be effective Dependency based on the available alternatives and their desirability Personal Bases of Power 0 Power stems from an individual s unique characteristics Expert in uence wielded as a result of expertise Referent based on identi cation with a person who has desirable resources or personal traits charisma Effective Power Bases O 0 Expert and referent power are positively related to performance and commitment Coercive power is negatively related to employee satisfaction and commitment Power and perceived Justice 0 There are potential distortions in the perception ofjustice 0 related to individuals in power Compared to those who don t have power people who have power may get more credit or more blame Power Tactics 0 Ways to use power to in uence others 0 Nine In uence Tactics 0 0000000 0 Legitimacy Pressure Rational Persuasion CoaHUons Inspirational appeals Consu a on Exchange Personal appeal Ingratiation In uence Tactics and Effectiveness O O O 0 Most effective rational persuasion inspirational appeals and consultation Least effective pressure Combining tactics increases effectiveness Direction sequencing individual skill ad organizational culture modify effectiveness 0 Global Implications 0 Culture affects preference for power tactics o Individualistic cultures see power in personalized terms and as a legitimate means of advancing personal ends Legitimacy of Political Behaviors 0 Based on sticking to the implied rules 0 Legitimate normal every day politics 0 Illegitimate hardball activities sabotage extortion Reality of Politics 0 Politics arise in organizations because of con icting interests limited resources and ambiguity in decisionmaking o Politicking twisting facts to support one s own goals and interests Organizational Factors Contributing to Political Behavior 0 Organizational resources declining or distribution shifting o Opportunity for promotion exists 0 Organizational culture issues Low trust Role ambiguity Responses to organizational politics 0 For those unwilling to play or with modest political skills the outcomes are negative 0 Moderated by individual s understanding of who makes decisions and why they were selected Impression Management 0 The process by which individuals attempt to control the impression others form of them 0 People may misrepresent themselves in situations of high uncertainty or ambiguity o Misrepresentations may discredit the individuals seen as insincere or manipulative Testing the Effectiveness of Impression Management 0 Interviews self promotion and ingratiation works well 0 Performance evaluations ingratiation positively related Selfpromotion is negatively related 0 The Ethics of Behaving Politically 0 Questions to consider What is the utility of engaging in the behavior How does the utility of engaging in the political behavior balance out any harm it will do to others Does the political activity conform to standards of equity andjusUce 0 Implications 0 Power can be increased by Increasing the dependence of others Gaining unique knowledge or skills Minimizing one s own dependence Acquiring useful bases of power Using effective power tactics Avoiding coercion 0 Power Theories or In uencing Tactics 0 Authority Consistency Reciprocity Social Proof Scarcity Theory Prospect Theory Liking Framing OOOOOOO Exam 3 Starts at 8 am if you re not taking the exam you can come in at 930 am Foundations of Group Behavior Chapter 9 Robbins OB Group 2 or more individuals interacting and interdependent who come together to achieve particular objectives Four types of groups 0 Command determined by the org chart 0 Task working together to complete a job task 0 Interest af liate to attain a speci c objective of shared interest 0 Friendship members have one or more common characteristics Why join groups Security Status Selfesteem Af liation Power and Goal Achievement 5 Stage Model of Group Development 0 Forming uncertain about purpose structure 0 Storming con ict 0 Norming becomes cohesive and strong group identity 0 Performing fully functional and working towards goals 0 Adjourning breaking up for temporary group Key Points of 5 Stage Model 0 Group Effectiveness 0 Group Con ict Group Properties 0 Roles set of expected patterns that are attributed to occupying a given position in a social unit Perception our view of how we re supposed to act in a given situation Expectations how others believe you should act in a given situation Con ict con ict experienced when multiple roles are incompatible o Norms acceptance standards of behavior within a group that are shared by the group s members Powerful means of in uencing behavior performance norms appearance norms socia arrangement norms resource allocation norms 0 Status socially de ned position or rank given to groups or group members by others High status often have freedom to deviate from norms better able to resist conformity pressure High status are more assertive ow status may not participate group creativity may suffer 0 Size sizes determine who will participate social loa ng dispersion of responsibility clouds the relationship between individual inputs and group output 0 Cohesiveness the degree to which members of the group are attracted to each other and motivated to stay in the group Lessons from Hawthorne Studies 0 Productivity increased because groups were paid attention to by the observers not because of changes in environment 0 Workers in groups do not maximize individual economic rewards 0 Group standards are set and enforced by the group itself Group Conformity 0 Reference groups groups in which a person is aware of other members de nes self as a member believes group members to be signi cant Individuals try to conform to norms of these groups Deviant Workplace Behavior 0 Voluntary behavior that violates signi cant organizational norms and in doing so threatens the wellbeing of the organization or its members 0 Likely to ourish when supported by group norms and people are in groups Encouraging Cohesiveness Make the group smaller Encourage agreement with group goals Increase the time spent together Increase the status and perceived dif culty of group membership Stimulate competition with other groups Give rewards to the group rather than to individual members 0000 CO o Physically isolate the group Group Diversity 0 The degree to which members of the group are similar to or different from one another Group DecisionMaking 0 Pros Generate more complete information and knowledge increased diversity of views increased acceptance of solution 0 Cons takes longer conformity pressure discussion can be dominated by one or a few members ambiguous responsibility for the nal outcome Effectiveness amp Efficiency 0 Effectiveness group is better than average individual but worse than the most accurate group member Speed individuals are faster Creativity groups are better Degree of acceptance groups are better 0 Efficiency groups are generally less efficient Group Think a deterioration of individual s mental efficiency reality testing and moral judgments as a result of group pressures o Occurs when members rationalize away resistance to assumptions pressure doubters to support the majority doubters keep silentminimize their misgivings interprets silence as a yes vote Minimizing Groupthink Limit group size encourage group leaders to actively seek input from all members and avoid expressing their own opinions appoint a devil s advocate lmplications Positive relationship between role perception and performance evaluation Norms control performance by establishing right and wrong Status inequities negatively impact productivity and performance Work Teams Robbins Chapter 10 OB Why are Teams popular Increased competition forced restructuring for efficiency and effectiveness Teams 0 Better utilize employee talents o Are more exible and responsive to change 0 Democratize and motivate Groups and Teams O O 0 Work group interacts primarily to share information Work Team generates positive relationships to achieve a common goals SelfManaged Work Teams 1015 employees in highly related jobs 0 Takes on supervisory responsibilities 0 O 0000 O O 0 May select and evaluate members CrossFunctional Teams Members from same level but diverse areas within and between organizations Exchange information Develop new ideas and solve problems Coordinate complex projects Development may be timeconsuming Virtual Teams Computer technology ties dispersed team together Special challenges less social rapport more taskoriented members less satis ed Key Components of Effective Teams Context presence of adequate resources effective leadership climate of trust in the team performance evaluation and reward system that re ects team contributions Composition abilities of members personality allocation of roles diversity of members size of team member preferences Process common plan and purpose speci c goals team efficacy common mental models low levels of con ict minimized social loa ng 0 Turning People into Team Players 0 Selection need employees who have interpersonal as well as technical skills 0 Training workshops on problemsolving O Rewards encourages team cohesiveness Teams aren t always the answer 3 tests 0 Complexity of work can the work be done better by more than one person 0 Common purpose does the work create a common purpose or set of goals for the people in the group that is more than the aggregate of individual goals 0 Interdependence Are members of the group interdependent Implications Have adequate recourse effective leadership and a climate of trust with suitable reward system compose teams with technical and interpersonal skills Work provides freedom autonomy Experiential Exercise Leadership Robbins Chapter 12 OB o The ability to in uence a group towards the achievement of a vision 0 Management is more daytoday leadership is the vision 0 Traditional Theories of Leadership Trait Theories o Focuses on personal qualities and characteristics 0 Big Five Personality Framework Extraversion has the strongest relation to leadership Conscientiousness and Openness to Experience also strongly related to leadership Agreeableness and Emotional Stability are not correlated with leadership Emotional Intelligence is correlated with leadership however this link is underinvestigated Behavioral Theories o Behaviors can be taught traits can t o Leaders are trained not born 0 Ohio State Studies 0 Developed 2 categories of leadership behavior Initiating Structure organizing the work Consideration 0 University of Michigan Studies Same as Ohio State Production Oriented Employee Oriented Contingency Theories o Attempt to match leadership style with work context as one leadership style does not work in every situation LeaderMember Exchange Theory LMX Model 0 Leaders treat followers differently O lngroup members are closer to leader in attitude or personality have more of the leader s attention get special privileges etc Charismatic Leadership 0 Attributions of heroic leadership when followers observe certain behaviors Vision Personal risktaking sensitivity towards followers extraordinary behaviors 0 Born or Made Bit of both 0 Charisma can be created by developing an aura of charisma be optimistic be passionately enthusiastic communicating with body not just words drawing others in inspire others tapping into emotions bring out the potential in others Charisma is strongly correlated to high performance and satisfaction Closely associated with upper level executives Potential Dark Side of Charismatic Leadership 0 O 0 Use organizational resources for personal bene t Remake companies in their own image Allow selfinterest to replace good business Transformational Leadership 0 O O Transactional Leaders motivate their followers in the direction of established goals by clarifying role and task requirements Transformational Leaders inspire followers to transcend their own selfinterests for the good of the organization Works with Creativity giving goals and creating an overarching vision o GLOBE Implications Vision is important but ways it is communicated tend to vary Authentic Leadership Ethics as a basis for leadership 0 Creates trust encourages open communication 0 Challenges to the Leadership Construct o Attribution Theory Performance outcomes are attributed to leaders actions Appearances have more to do with leadership than outcomes 0 Substitutes and Neutralizers Organizational variables can substitute 0 Implications Leadership in uences group performance leadership success depends somewhat on having quotthe right stuffquot depends on the situation transformational skills becoming more important managers must be authentic and develop trust relationships with their followers select and train based on traits and qualities Conclusion End of Class Wrapup All of our sections are connected 0 Human Behavior can be shaped but it cannot be predicted there is always free will and attribution bias 0 Use these tips to in uence people for good but don t let this information affect you you have free will The Chinese Negotiation ByJohn L Graham and N Mark Lam Harvard Business Review 0 Understanding the broader context of Chinese culture and their impact on the Chinese negotiating style Stereotypes on both sides 0 Chinese inefficient indirect dishonest 0 American aggressive impersonal and excitable o 4 Predominant Cultural Threads of the Chinese negotiating style 0 Agrarianism Agrarian culture emphasizes cooperation harmony and obedience to familial hierarchy Chinese traditionally revere the quotrootquot agriculture and slight the branch commerce 0 Morality Adherence to hierarchical relationships yields social harmony The best compromises result from the ritual backand forth of haggling o A pictographic language Chinese thinking tends towards more holistic processing of information and emphasizes the big picture over details 0 Wariness of foreigners Years of external and internal strife have yielded a mistrust of strangers and cynicism about rules 0 8 Negotiation Elements of Chinese style 0 Personal Connections Prize relationships among friends relatives and close associates Favors are always remembered and returned Ignoring reciprocity is considered immoral o The Intermediary In dealings with strangers an intermediary is essential 0 Social Status High value is placed on deference and obedience social status 0 Interpersonal Harmony Inperson visits and longterm relationships are the foundation of positive feelings and business relationships Holistic Thinking Chinese emphasizes the whole package over the details Usually causes the most tension in negotiations due to Western linear problemsolving Th rift Chinese expect the result to come from weeks of haggling and for both sides to make concessions Face or social capital Broken promises or displays of angeraggression cause both sides to lose face long bargaining To demonstrate EnduranceRelentlessness Chinese prepare diligently for negotiations and expect sessions diligence do your research and show anence The View from Both Sides American Chinese Their basic cultural values and ways of thinking Individualist Collectivist Egalitarian Hierarchical Information oriented Relationship oriented Reductionist Holistic Sequential Circular Seeks the Truth Seeks the Way The argument culture The haggling culture How they approach the neg otiation process Quick meetings Long courting process Informal Formal Make cold calls Rely on intermediaries Full authority Limited authority Direct Indirect Proposals rst Explanations rst Aggressive Questioning Impatient Enduring Forging a quotgood dealquot Forging a long term relationship
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