Management notes for the week of 3/1
Management notes for the week of 3/1 MGMT 300
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This 14 page Class Notes was uploaded by Eric LaPree on Sunday March 6, 2016. The Class Notes belongs to MGMT 300 at University of North Dakota taught by Nikolaus Butz in Spring 2016. Since its upload, it has received 27 views. For similar materials see Principles of Management in Business, management at University of North Dakota.
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Date Created: 03/06/16
Management 300 Dr. Butz Notes for the week of March 1 Key Terms: Orientation – Process or program that helps newcomers fit smoothly into the job and organization Training – Educating technical and operational employees in how to better do their current job. Development – Educating professionals and managers in the skills they need to do their jobs in the future. Performance appraisal – Consists of assessing an employee’s performance and providing him or her with feedback. Objective Appraisal (Results appraisals) Appraisal based on fact (such as sales info and number of complaints). Subjective Appraisal – Appraisal based on manager’s perception of employee. Righttowork – Statute that prohibits employees from being required to join a union as a condition of employment. Grievances – A complaint by an employee that management has violated the terms of the labor management agreement. (Allows employees to be heard and intervene with an investigation to the complaint as soon as possible). Shop Steward – Union official elected by the union membership who represents the interests of the unionized employees. Mediation – Process which a neutral third party listens to both sides in a dispute, makes suggestions, and encourages them to agree on a solution. Arbitration – process in which a neutral third party listens to both sides and makes a decision that the parties have agreed will be binding on them. First mover advantage – Being first allows the company to acquire superior brand recognition and customer loyalty. The innovator’s dilemma – It is hard for large successful companies to cope with disruptive innovation and therefore should set up separate organizations that can operate like a startup. Data workers – Employees that sort data but do not add value in terms of creating new knowledge which requires analytics knowledge workers. Reactive change – Making changes in response to problems as they arise. Proactive change – Making carefully thought out changes in anticipation of possible or expected problems or opportunities. Technology Any machine or process that enables an organization to gain a competitive advantage in changing materials used to produce a finished product. Resistance to change – An emotional / behavioral response to real or imagined threats to an established work routine. Change agent – The individual who is the catalyst in helping an organization change. Benchmarking – A process by which a company compares to its performance with that of high performance organizations. Organizational development – Set of techniques for implementing planned change to make people and organizations more effective. Creativity – The process of developing something new or unique. Invention – The creation of something new. Innovation. – The practice of creating new ideas and converting them into useful applications. Orientation – Process or program that helps newcomers fit smoothly into the job and organization Gives employees the info they need to be successful Formal – Typically used in larger companies Informal – Typically used in smaller companies Orientation teaches 3 things 1. Job routine including what is expected of them, who the boss is, how they are evaluated and who your coworkers are 2. Organization’s mission and operations a. Company’s purpose b. History, and how they operate now 3. Organization’s work rules and employees benefits a. Overtime policy b. Grievance procedures and sexual harassment rules Training vs. development Training – Educating technical and operational employees in how to better do their current job. Development – Educating professionals and managers in the skills they need to do their jobs in the future. Typically training and development focuses on: Customer service Safety Leadership Computer skills Quality initiatives Communication Ethics Diversity Sexual harassment 5 step in training process 1. Assessment 2. Objectives 3. Selection 4. Implementation 5. Evaluation (loops back to objectives to see if objectives work and are effective) If you are teaching facts use lectures, videos, and workbooks. If you are teaching skills use discussion, role playing, and practice. Types of training: Onthejob (training at the place of work) Coaching, training positions, job rotation, planned work activities Offthejob Classroom programs, tapes, workbooks, computer assisted instruction (CAI) Performance Management – The continuous cycle of improving job performance. This is done by setting goals, getting feedback, coaching, and rewarding employees The point is to get employees on focusing on attaining goals that relate to the organization’s strategic goals and vision Performance appraisal – Consists of assessing an employee’s performance and providing him or her with feedback. It’s important when giving feedback to cover 3 main areas: 1. What you as a boss like about the employee’s performance 2. What the employee can do to improve 3. How the employee and boss can work together During the review: Approach the review as a problem solving scenario Avoid direct criticism Treat the employee with respect Be specific when describing current strengths and weaknesses Get employee input in figuring out causes of existing problems Types of performance appraisals Objective (Results appraisals) Appraisal based on fact (such as sales info and number of complaints). Subjective appraisal – Appraisal based on manager’s perception of employee. Traits – Attitude, initiative, and leadership skills Behaviors – Measures specific observable aspects of performance on a scale of subjective terms. Behaviorally Anchored Rating Scale (BARS) – Rates employee performance according to scales of specific behavior People whom give appraisals Managers Peers and subordinates Customers and clients Selfappraisals 360degree performance appraisals – all of the above combined Forced ranking performance review All employees within a business unit are ranked against one another and grades are put along a bell curve. Pros: Fair and easy way to identify poor performers and award bonuses, encourages managers to eliminate poor performers Cons: Pits employees against each other Formal appraisals – Conducted at specific times throughout the year based on performance measures that are established in advance Informal appraisals – Conducted on unscheduled basis and consists of less rigorous indications of employee performance. 3 parts of compensating employees 1. Wages and salaries 2. Incentives – Mechanisms to get employees to do something for a reward in return 3. Benefits (fringe benefits) – Additional nonmonetary forms of compensation designed to enrich the lives of employees Positive and neutral employee movement Promotion – Moving up recognizes employee’s superior performance Look out for issues with fairness such as nepotism (favoritism for relatives) and cronyism (favoritism for friends). Be careful to not discriminate and to keep other’s resentment in check. Transfer – moving to a different position with similar responsibility Purpose: change employee’s geographic location, use employee’s skill in new area, broaden employee experiences. Negative employee movement Demotion/disciplining – The action or threat of moving downward Purpose: punish underperformance or a result of economic conditions Dismissal – moving out of the organization Layoffs – temporary dismissal that may be recalled later when economic conditions improve. Downsizing – permanent dismissal due to economic circumstances Firing – Permanent dismissal for a cause Labor management issues Labor unions – organizations of employees formed to protect and advance their member’s interests by bargaining with management over jobrelated issues How employees organize: Get employees to sign authorization card Once 30 or more employees sign the authorization card the union will request official recognition from management (management typically refuses at first) the union will petition the National Labor Relations Board (NLRB) to become an official bargaining unit. How workers organize Collective bargaining (union reps meet with management to negotiate) ratification (union reps take the results back to the members to vote on whether or not to accept or reject the terms) negotiated labor management contract (only if the motion and votes pass) Key issues that Union Reps and management negotiate – Compensation, employee benefits, job security, work rules, hours, and safety. Union security clause – The part of the union labormanagement agreement that states that employees who receive union benefits must join the union or at least pay dues to it, Closed shop – employer may hire only workers for a job who are already in the union (illegal) Union shop – workers aren’t required to be union members when hired for a job but must join the union within a specified time (not allowed in 22 righttowork states) Agency shop – workers must pay equivalent union dues but aren’t required to join the union (applies to public school teachers in some states but prohibited in others) Open shop – workers may choose to join or not join a union (applies in the 22 righttowork states) Righttowork – Statute that prohibits employees from being required to join a union as a condition of employment. Compensation tactics Twotier wage contracts – new employees are paid less or receive lesser benefits than veteran employees have Costofliving adjustment (COLA) – clause during the period of the contract ties future wage increases to increase in the cost of living Givebacks The union agrees to give up previous wages or benefits given to them in return for something else. Settling labormanagement disputes Grievances – A complaint by an employee that management has violated the terms of the labormanagement agreement. (Allows employees to be heard and intervene with an investigation to the complaint as soon as possible). Shop Steward – Union official elected by the union membership who represents the interests of the unionized employees. Mediation – Process which a neutral third party listens to both sides in a dispute, makes suggestions, and encourages them to agree on a solution. Arbitration – process in which a neutral third party listens to both sides and makes a decision that the parties have agreed will be binding on them. Employee replacement Any time an employee moves another individual must fill in the previous position Movement creates an opportunity to reevaluate and update the job description so that the next person to occupy that position will be more effective Ways to deal with change: Allow room for failure Give a single consistent explanation for change Be courageous enough to follow your ideas Allow grieving then move on Collin’s 5 stages of decline (When a company can’t cope) 1. Hubris (arrogance) made from success 2. Undisciplined pursuit of more (trying to overextend into an area where they have no real business being there) 3. Denial of risk and peril (ignoring warning signs and putting a positive spin on the data) 4. Grasping for salvation (company is in obvious decline and tries something bold and risky to try to find their way back into the spotlight) 5. Capitulation to irrelevance or death (the company is sold or allowed to go bankrupt) 5 super trends that are shaping the future of business 1. Markets are becoming more segmented and moving more towards niche products 2. More competitors are offering targeted products requiring aster speedtomarket (getting a product on the market) a. First mover advantage – Being first allows the company to acquire superior brand recognition and customer loyalty. 3. Some companies may not survive radically innovative change a. The innovator’s dilemma – It is hard for large successful companies to cope with disruptive innovation and therefore should set up separate organizations that can operate like a startup. 4. Offshore suppliers change the way we work 5. Knowledge not info is becoming the new competitive advantage a. Data workers – employees that sort data but do not add value in terms of creating new knowledge which requires analytics knowledge workers. 2 types of change A. Reactive change – Making changes in response to problems as they arise. B. Proactive change – Making carefully thought out changes in anticipation of possible or expected problems or opportunities. Forces for change: Inside: Demographic characteristics Age Education Skill level Gender Immigration Market changes Mergers and acquisitions Domestic and international competition Recession Technological advancements Manufacturing automation Office automation Social and political pressure Leadership Values Inside Forces: Employee problems Unmet needs Job dissatisfaction Absenteeism and turnover Productivity Participation / suggestions Manager’s behavior Conflict Leadership Reward systems Structural reorganization Forces for change outside of organization: 1. Demographic changes – aging workers, more diversity, millennial workers 2. Market changes – great recession caused increase in demand for thrift stores 3. Technological advancement – online shopping 4. Shareholder and customer demands – willing and able to take their dollars elsewhere if they are not satisfied 5. Supplier practices – sweat shops 6. Social and political pressures healthy living movement Forces of change from within an organization: 1. Employee problems – misalignment between the employee’s needs and desires and those of the company 2. Manager’s behavior – conflict between managers and employees 4 areas where changes is often needed: 1. Changing people: a. Perceptions b. Attitude c. Performance d. Skills 2. Changing technology (not just computer tech) a. Technology – Any machine or process that enables an organization to gain a competitive advantage in changing materials used to produce a finished product. 3. Changing structure – trends towards flattening hierarchy 4. Changing strategy – changes in the marketplace necessitate changes in strategy The causes of resistance to change Resistance to change – An emotional / behavioral response to real or imagined threats to an established work routine. 3 interactive factors that cause resistance to change 1. Employee characteristics – individual differences, actions / interactions, and perception of change 2. Change agent characteristics a. Change agent – The individual who is the catalyst in helping an organization change. b. The change agent’s individual differences, actions and interactions, and perceptions of change. 3. Change agentemployee relationships (requires trust) The degree to which employees fear changes Adaptive change (least threatening / resistant) – reintroduction of a familiar practice Innovative change (somewhat threatening / resistant) – introduction of a practice that is new to the organization Radically innovative change (very threatening / resistant) – involves introducing a practice that is new to the industry. 10 reasons employees resist change: 1. Individual’s predisposition toward change 2. Surprise and fear of the unknown 3. Climate of mistrust 4. Fear of failure 5. Loss of status or job security 6. Peer pressure 7. Disruption of cultural traditions or group relationships 8. Personality conflicts 9. Lack of tact or poor timing 10. Nonreinforcing Kurt Lewin’s 3 stage model of change 1. Unfreezing – Creating the motivation to change because employees need to become dissatisfied with the old way of doing things. a. Benchmarking – a process by which a company compares to its performance with that of highperformance organizations. 2. Changing – learning the new way of doing things. a. Employees need to be given the tools for change i. New info ii. New perspectives iii. New models of behavior 3. Refreezing – making the new ways normal a. Employees need to be helped to integrate the changed attitudes and behaviors into their normal way of doing things John Kotter’s 8 steps for leading organizational change (very similar to the above 3 steps with a little more detail in each of the 8 steps that constitutes unfreezing, change, and freezing. Organizational development (OD) – Set of techniques for implementing planned change to make people and organizations more effective. Change agent – a consultant with a background in behavioral sciences who can be a catalyst in helping organizations deal with old problems in new ways What can OD be used for? 1. Managing conflict 2. Revitalizing organizations 3. Adapting to mergers The OD process 1. Diagnosis 2. Intervention – an attempt to correct the diagnosed problem 3. Evaluation 4. Feedback 4 prereqs for effective OD: 1. Multiple interventions – goal setting, feedback, recognition, reward, training, participation, and challenging job design 2. Management support 3. Goals geared to both short and long term results 4. OD is affected by culture Creativity – The process of developing something new or unique. Invention – The creation of something new. Innovation. – The practice of creating new ideas and converting them into useful applications. Requires proper culture, resources, and reward system, fail early, cheaply, and don’t make the same mistake twice. Seeds of innovation Hard work in a specific direction Hard work with a direction change Curiosity Wealth and money Necessity Combination of seeds Types of innovation Product innovation – change in the appearance or performance of a product or the creation of a new one. Process innovation – change in the way a product is conceived, manufactured, or disseminated Incremental innovation – creation of products, services, or tech that modifies existing ones. Radical innovation – creation of products services or tech that replace existing ones Celebrating failure: cultural and other factors of encouraging innovation 1. Culture – encourage risk taking and celebrate failure 2. Resources – allocate time, money, energy, and focus toward innovation 3. Rewards – commission, bonuses, and awards recognition 4 steps for fostering innovation 1. Recognize a problem of opportunity 2. Gain allies a. Show how the product / service will be made b. Identify potential customers c. Demonstrate how to beat competitors d. Explain the timeline 3. Overcome resistance a. Commission, bonuses, and awards and recognition 4. Execute well