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This 14 page Class Notes was uploaded by aiy0001 on Sunday August 21, 2016. The Class Notes belongs to 3100 at Auburn University taught by Dr. Cecilia Champion in Fall 2016. Since its upload, it has received 4 views. For similar materials see Management in Economics at Auburn University.
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Date Created: 08/21/16
Management Chapter 8: Managing Change and Innovation Forces for Change-Propelling you to change in some way; how do you keep your competitive advantage External Forces o Changes in the general and specific environment Internal Forces o Shift in strategy o Employee suggestions o Performance gap Evaluating the Need for Change Incremental Change: Everyone has responsibilities and suggests possible improvements and efficiencies o ALWAYS looking at how you can improve o Toyota-Started as a cost leadership company but strive for continuous improvement and moved to differentiation Transformational Change: Fundamental changes in mission, structure, and culture which involves the total organization o Microplane grader Reactive Change: Where you DON’T want to be-Playing catch-up and this is seen as a threat; Response to unanticipated changes in the environment o Reset Proactive Change: Where you want to be! Monitoring where you are and how you can prepare for the future; how you can work your product into a competitive advantage o Anticipate what you’re going to need as an organization o Kindle and Apple o Innovation Strategies Exploration Creativity Experimentation Idea incubators Cooperation Mergers, joint ventures Open innovation Entrepreneurship How you successful nurse an idea How you bring these ideas to market Which ideas to invest in Idea champions New venture teams Skunkworks Creativity New ideas that provide opportunities for the organization NO natural born talent! We can ALL be creative! Not about being artistic but about testing boundaries and coming up with novel ideas Individual Creativity o Expertise: Finding out about an area and knowing a lot about it; depth of knowledge Don’t necessarily lean towards a particular area- broad experiences are necessary too Ex. Steve Jobs-Using his calligraphy background to make the Mac computer o Creative Thinking: Risk taking, tolerance for ambiguity (push out bounded awareness), perseverance (never going to have instant success but you build on past learning), lack of concern for social approval-otherwise you’ll pull back on creative ideas Ex. Culture of Facebook o Passion for the Task: Getting people to move into that “zone” Hire people who have interest in your area Matching the people in the organization with similar passions/interests Organizational Change-Promoting Creativity o Challenging Work o Organization oriented towards new ideas-Hiring people from all different backgrounds Mechanisms for new ideas Pixar: Plussing Brainstorming Technique: Building on ideas-no “buts” only “ands” Tolerate failure: Feeling safe with risks Avoid negative criticisms of ideas-Fair and constructive judgments o Organizational diversity o Willingness to share ideas and have constructive feedback o Clear goals but autonomy in achieving goals o Ex. IDEO-Shopping Cart Project Taking wild ideas and building off of those Characteristics of Learning Organizations: Skilled at creating, acquiring, and transferring knowledge and using it for organizational change o Systematic approach to problem solving: Data driven o Continual experimentation o Learning from past experiences: Successes and failures o Learning from the best practices of others o Sharing knowledge throughout the organization Coordination Model for Innovation: Team based approach-people from all over the company come in to achieve the goal -Manufacturing department, research department, marketing department o New technologies o Formal innovation partners Joint ventures, mergers Ex. Force flex garbage bags-joint ventures o Open innovation mechanisms Ex. P&G Anyone can submit an idea that’s interested in the problem that’s beyond their organization o Customers, market needs Promoting Corporate Innovation-Entrepreneurship o New venture teams Taking a separate unit of the organization and free them from the organizational bureaucracy o Skunkworks Secretive program-even the CEO’s may not know what’s going on Free from constraints Highly independent group within the organization that’s focused on developing breakthrough products and ideas o New Venture Fund Providing resources and grants for the development of an idea Includes outside organizations Getting New Ideas Implemented Inventor o May come up with a great idea but does not know how to market the product or how to win support for the idea o May not want to even spend time promoting the product Champion o The one who will push the idea through the organization- believes in the idea and visualizes the benefits o Confronts organizational realities of cost and benefits o Obtains financial and political support if needed o Will find support and overcome any obstacles Sponsor o High level manager who removes organizational barriers o Approves and protects idea within the organization Critic o Provides the reality test o Looking at the real costs and issues and how it will really be beneficial in the end o If you have those rules, you’ll become successful in the long run Changing people and culture Culture is the most difficult thing to change within an organization! People change: Training and development Culture change: Organizational development (a large culture change is not easy!) o Organizational Development: Planned, systematic process of change using behavioral science Addresses 3 types of problems: Mergers and acquisitions Organizational decline and revitalization Conflict management Kurt Lewin’s Change Process: The 3 Steps (1) Unfreezing o People aren’t going to change unless they see a need for change o Let people see why they need the change and how it is going to improve the performance of your company o Use contrast and confrontation to highlight the need for change (2) Changing/Movement o Once you get people to see the need for change, you get people to move forward o Experiment AND REWARD for new behavior Letting them see where they are making progress o Helping them stick with the new goal Provide training (3) Refreezing o Reward, reward, reward so it becomes a part of their new behaviors-keeping that new change Why do people resist change? Habit: people get used to one way of doing things Self-interest: the fear of personal loss is the biggest obstacle to organizational change Lack of understanding: do not understand the intended purpose of a change or can’t see the need for change Mistrust: do not trust the change agent or distrust the intentions Uncertainty: risk or failure Different assessment and goals: people who will be affected by innovation may asses the situation differently Implementing Change: Successful change requires increasing driving forces or decreasing restraints 1. Outline the need for change: disparity between existing and desired performance levels 2. Understand the resistance to change Self interest Lack of understanding Uncertainty Different assessments and goals Force-field Analysis Driving Forces: What are the reasons we want to change? Why do we want to change? Restraining Forces: Barriers to change within the organization o Obstacles that are impeding the successes of the future of the organization o Reducing those barriers so the driving forces win out Stages of Change-For an Individual Level-important to address the emotions of the workforce! Focusing on the emotional aspects 1. Denial: Not believing something is going to happen a. Becomes more profound if a company has a history of failure b. Strategy: provide employees with information 2. Resistance a. Strategy: Listen, patience, say goodbye to the past (a way to acknowledge a loss) 3. Exploration: People have a burst of energy to enjoy their work again a. Good time for brainstorming sessions-allow participation b. Strategy: Direct energy in positive ways 4. Commitment: Acknowledge accomplishments and reward success Chapter 10: Organizational Behavior Organizational Behavior: A field dedicated to the study of human attitudes, behavior, and performance in organizations Components of Attitude Attitude: A predisposition to act in a positive or negative way to someone or something Doesn’t mean that you’re necessarily going to behave in a particular way Drawing conclusions about their attitudes based on their behavior Components (if one is changed, this may contribute to the overall change in attitude) o Cognitive: Beliefs, opinions, and information the person has about to object of the attitude Beliefs may be accurate or not “My job isn’t challenging” “It is important to care for others” Remember the Titans lunch scene-telling them to learn about their other race teammates o Affective: Positive or negative emotions about the object of the attitude “I don’t like my job” Doesn’t have a positive feeling “I’m happy to help the community” Good grades=”I’m glad to be in school” o Behavioral: Your intentions (contemplating in a particular fashion) towards the object of an attitude in a certain way “I’m going to volunteer for City Clean Up Day” “I’m going to class every day” Remember the Titans bus scene Coach focused on this component, changing their behavior When our emotions/attitudes don’t match up with our actions, this creates cognitive dissonance o Conflict and discomfort arises-all about congruency o How do you resolve this? Change beliefs to match behavior Change behavior to match beliefs Assign external causes-conform and accepting responsibilities for behavior and basically blaming someone else for this discomfort Not changing your attitudes but conforming your behaviors High Performance Work Attitudes o Tend to behave in ways that match our attitudes o Behaviors in which organizations are concerned with productivity, organizational citizenship, turnover, absenteeism o Job satisfaction Positive attitude towards job Links with productivity are less clear o Organizational Commitment Loyalty and involvement to the organization Organizational citizenship: taking responsibility, being cooperative, committed to successes of the organization Voice: Providing constructive criticisms; stepping up and saying that we need to do things differently Perception: How we organize and draw conclusions from our environment and the way we interpret that information 2 people can look at the same thing BUT perceive it differently o All based on the experience **Managers make judgments about employees based on their perceptions Our reality is based off our perceptions! The perception process o Observe: Observing information o Screen: Select and screen information on what to process o Organize: Interpret information Interpretations: Judgments about what caused a person’s behavior o Internal attributions: Characteristics of the person led to the behavior o External attributions: Something about the situation caused the person’s behavior Attributions: Internal or External cause for a behavior? o Distinctiveness: Was something different in this situation from their usual behavior? If this is the case, we attribute external causes o Consistency: Same behavior is displayed over time If this is the case, we attribute internal causes Problem: You don’t even consider external causes! As a manager, must be constantly checking the environment and not putting out our positive and negative emotions! o Consensus: People tend to respond to similar situations in the same way If this is the case, we attribute external causes o Errors Fundamental Attribution Error: Overestimate internal causes and underestimate the influence of external causes Blaming the people and their characteristics more than the environmental factors Self-Serving Bias: Good things are always because we are great and when something bad happens to us, we attribute it to external causes Personality Factors Personality: A set of characteristics that underline a stable pattern of responses to your environment-people, ideas, and objects 5 dimensions-A person can have a low, moderate, or high degree in each of the dimensions (OCEAN) o Openness to Experience: Adaptive, willing to try new things o Conscientiousness: Level of determination to get the job done, dependable, and achievement oriented Small, positive impact on job performance Dependable and persistence have better job performance o Extroversion: Measure of outgoing, social, assertive with other people or introverted The power of introverts: NOT shy, most alive in quiet environments, encourage their employees to be free with their ideas Amniverts-right in the middle Solitude is necessary for creativity! Small positive impact Managerial jobs and sales positions o Agreeableness: Level of good-natured, trusting, and cooperative Small, positive impact Customer service positions o Neuroticism (Emotional Stability): calm, worried, secure Small, positive impact Calm and secure have low anxiety and thus better performance Emotional Intelligence: Set of skills that we learn from our youth that illustrates how we cope in a positive way -Affects job performance Higher social interaction are important for management positions Self-awareness: Knowing your strengths and weaknesses (and working to minimize these) and being aware of your feelings o Getting down to the root of your feelings Self management: Ability to control disruptive emotions and impulses o Recognizing your frustration but also focusing on being persistent and moving forward o People with a higher ability of this are more optimistic and are able to overcome setbacks o Not giving in to impulses Relationship Management: Ability to handle emotions of others and build positive relationships Social Awareness: The ability to put yourself in other people’s shoes-ability to not get wound up with other’s issues Chapter 11: Leadership Leadership: The ability to influence people toward the attainment of organizational goals Social: Interpersonal skills are important Not position bound-anyone can show or demonstrate leadership o May not be a management position Workers who set an example for co-workers-From day 1! Voluntary actions-people are willingly moving in the direction of the goal they want to achieve Leadership within Organizations o Leaders Looks at traits that correlate with leadership: highly energetic, constantly on the move, self-confident, honest (to get people to follow you, they have to trust you, optimistic (being positive in overcoming obstacles), high interpersonal skills, intelligence (emotional as well), cooperativeness Sources of Power Position Power o Legitimate Power: Power comes from a formal position o Reward Power: The ability of a manage to give or withhold rewards A strong source of position power o Coercive Power: The ability of a manager to punish or recommend punishment Personal Power o Expert Power: Based on special knowledge on a skill-develops with experience Available in all levels of an organization and a source of power for lower level employees Power is increased when the need for knowledge is greater and the organization depends on the person o Referent Power: The characteristics that people admire and want to imitate (when you grow up you want to be like them) Personal Effort: Perseverance, hard work “Hard work beats talent when talent doesn’t work hard” Network of Relationships: Building networks- formal and informal Information: Information is power (can choose whether or not to share it)! Using this for the benefit of the organization or to influence people Leadership Behaviors Assistance in performing tasks: Concern for Tasks o Initiating structure Focused on the goal and getting to that goal Gives instructions, spends time planning, and emphasizes deadlines Reputation for being a “hard nose boss” but of course there’s always a balance between the 2 Establishing interpersonal relationships (supports task performance): Concern for People o Consideration Mindful of subordinates Establishes mutual trust Provides open communication Develops teamwork Concerned with their employees welfare and satisfaction Focuses on relationships with followers Leaders: More concerned with the vision (future oriented) o Building a vision and asking people to follow the vision Rely on personal power Experimental-challenging the status quo Managers: Rely more on position power Concerned with the status quo-getting current commitments done effectively -Not one best leadership style Some behaviors fit better in certain situations Followers o Alienated Passive and independent, critical thinking o Effective Independent, critical thinking and active o Passive Passive and dependent, uncritical thinking o Conformist Active and dependent, uncritical thinking Situations o Situational Model-Hersey & Blanchard Directing Style High focus on task, low focus on people For people who lack confidence or lack the ability to actually perform the task-needing someone to tell them what to do Coaching Style High on task and people needs People have the readiness and confidence to perform a certain task, but they don’t have the ability-willing to learn Supporting Style High on people and low on task needs High on ability but lack confidence-you know as their manager that they have all the skills Could be due to a new situation Entrusting Style Low on people and task needs Have the skills and the confidence of what they are doing Just delegate and then GO Fiedler’s Contingency Theory: Elements of the Situation (Degree of Favoribility) Leader-Member Relations: The degree to which workers respect, like and trust their leaders o If they mistrust you, it may not be you personally but the position you’re walking into! Task Structure: The extent to which people know the job their supposed to be doing, clear and defined goals Position Power: The degree to which the leader has formal authority reward and punish workers *The organization should match a person’s leadership style to the situation for effective performance of a group *Task leadership styles are applicable when situations are either highly unfavorable or highly favorable *Relationship leadership styles are when situations are moderately favorable Does Leadership Always Matter Some situations where leadership may not be effective on performance o Substitutes: Leadership substitutes are situational characteristic which make leader behaviors unnecessary If workers have high skills and abilities, task oriented leadership styles will have little effect on performance o Neutralizers: Characteristics that interfere with leadership behaviors to the extent that the leader cannot influence performance Low position power, physical separation When workers telecommute or work in distant offices, leaders can have infrequent contact making it difficult to lead Leadership for Organizational Change: More effective approaches to change than others Charismatic Leaders: Create exceptionally strong relationships with followers o Aren’t necessarily all good people! o Inspire and motivate people o Ability to communicate a vision so it almost seems real and you can see it-it may not even be close! o Have confidence in the ability of their followers to achieve the vision o Doesn’t spend a lot of time developing the capabilities of the people-just bringing them to the vision o May not be honest, puts on a facade Transformational Leaders: Make the followers feel that their contribution is vital to the organizational goals o “I’m in this with you” Model of taking risks o Followers needs ahead of their own Leader 5: Highest level of manager capabilities o Humility-lack of ego o Fierce work ethic to do what is best-even if it could result in unfriendly ties o Give credit to other people o Ambitious for the company o Don’t like the spotlight-shy Complete opposite of Trump Not going to be on the cover of a magazine whereas a charismatic leader might Servant Leadership o Looking to what happens to the company after they are gone-working beyond the company o Give away power, ideas, information, recognition, and credit for accomplishments (even money!) o Leadership is not about you o Self-interestgood of the company Authentic Leadership o Self aware-knows strengths and weaknesses o Self confidence o Have higher order ethical values o Honest about who they are o Don’t have the tendency for impression management o More concerned with trust, higher ideals, and authenticity (may however not be in the company’s best interest, but they are consistent!)
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