ORG BEHAV IN HIGH PERFORM ORGS
ORG BEHAV IN HIGH PERFORM ORGS MGMT 4850
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Decision Making in Organizations Chapter 11 V Organizational Decisions Programmed vs Nonprogrammed Certain vs Uncertain Topdown vs Empowered Factors Affecting Decisions Individual differences Group influences Organizational barriers Cultural differences 1w Time pressure l lilenlii39 the problem 2 Establish decisions criteria 8 Evaluate the decision 3 Weigh decision criteria 7 Implement the decision Assumptions Qt RatEGJWEWCV Single well defined goal All alternatives is to be achieved Problem is and clear and consequences v unambiguous are known Rational Desision f Final choice Preferences Making Wiquot maXimize are clear 39 payoff Preferences are constant and stable No time or cost constraints exist Alternative Decision Model a Bounded Rationai There are organizational social and human Imitations that makes optimal deCISIons not pOSSbe Alternative Decision Model Satisficing the first alternative solving the problem Implicit preference adding alternatives but bias toward the implicit favorite Successive comparison incremental improvement Intuitive An unconscious process out of distilled expenence V Faulty Decision Making Hindsight Escalation of Commitment Anchoring Bias Frammg Blas 1 39 Overcon dence Bias Hindsight Bias Overestimating the ability to predict future events 82 of drivers surveyed feel they are in the top 30 of safe drivers Doctors consistently overestimate their ability to detect problems n Willy the tendency for individuals to rely too heavily on a single piece of information Framing Bias j the tendency of decision makers to be in uenced by the way that a situation or problem is presented Biases Risky Choice Framing The government is combating a rare disease expected to take 600 lives Two alternative programs have been pro osed Program A will save 200 people if a opted Program B has a 13 chance of saving all 600 people but a 23 chance of saving no one Which program do you prefer Suppose you have to choose between Program C and D Program C will cause 400 people to die while Program D has a 13 chance that no one will die and a 23 chance that all 600 will die 10 Biases Attribute Framing You and your friend are walking in the desert and feel so thirsty Your friend remembers a last bottle in your backpack and asks you to see how much water is in the bottle He wants to quit if there is not much water You find the bottle and there is 50 water How you do tell your friend Hey the bottle is still half full Oops the bottle is already half empty 11 Biases Goal Framing If you visit the dentist regularly you have good chance of healthy teeth If you fail to visit the dentist regularly you have good chance of toothache cavities and extractions 12 g Escalation of Commitment The tendency for inc vduas to continue to support ore Vous y unsuccessful courses of action Present l39ii triihn l DoX 00X 00X 90X X D X l l Doxagain l l I I I l Time gt Escalate commitment throw Give Up good money after bad in order to cut losses justify previously made decisions and run 13 Group Decision Making Strengths Weaknesses More complete More time information consuming Increased diversity Increased pressure of views to conform Higher quality of Domination by one decisions or a few members Increased Ambiguous acceptance of responsibility solutions 14 Viools and Techniques for Making Better Decisions L Brainstorming l Nominal Group Technique I Delphi Technique If Majority Rule Consensus j gDecision technique Brainstorming i Brainstorm77 A technique designed to foster group productivity by encouraging interacting group members to express their ideas in a noncritical fashion Four main rules Avoid criticizing each others ideas Share even farout suggestions Offer as many comments as possible Build on others ideas to create your own 16 Nominal Group Technique A technique for improving group decisions in which small groups of individuals systematically present and discuss their ideas before privately voting on their preferred solution The most preferred solution is accepted as the group s decision 1 A small group gathers around a table and receives instructions problem is identi ed l 2 Participants privately write down ideas about solutions 1 Each idea is discussed clarified and evaluated by group members i 5 Participants privately rank the ideas in order of their preference l The highestranking idea is taken as the group s decision 17 Delphi Technique A methoo of impro ving group decisions using the opinions of experts which are soiciteo by mail and then compieo The expert consensus is useo to make a decision 1 Enlist the quot 3 Experts reco rd Problem coope ratio n in Sbtutign39s of experts retgmme39nda dns 4 Experfs responses are compiled and reproduced 6 Experts comment on others39 ideas and propose a soLution If a consensus 39 r he 5 eat d If no consensus is reached 18 Assessing Ethical Concerns Does this decision break any organizational rules Does this decision break any laws How would I feel if this decision was broadcast on the news Organizational Structure and Change Chapter 14 F arms of Organizational Change company culture structure technology strategy procedures policies Sample Organizational Char Counsel President Consumer Industrial Consumer Industrial Consumer Industrial Consumer Praducts Pmducts Products Products Products Pradu mductsr Director Directnr Direct r Director Director Director Sales Human Production Production RM RampD Resources W mm 55mm 5t Easxzm me Minn Regina Regina Regiun Raglan Industrial Industrial lesumpr emu lmlnsma Pm uns mums Prnduns Pmduns I mnus Prnduninn Pmd 39nn Fmdudiun Fladunian RM amg Managzr Manager Managar Manager Structure Concepts 3 Hierarchy of Authority A configuration ofthe reporting relationships within organizations that is who reports to whom it Division of Labor The process of dividing the many tasks performed within an organization into specialized jobs 1 Span of Control The number of subordinates in an organization who are supervised by an individual manager lt Flat hiemrchy gt Am ltm 1m O mmsnmzosm I I I I I I wrrlrrrlrrrrrrfrrrrlrrrr ultmlt San m Modern Trends Delayering As today s organizations restructure the middle layers of organizational hierarchies tend to get removed The result is a flatter organizational structure Functional Organization Product Organization President IMI L 1 Research 8 Prudum un Sales Devemp Accmmtinq Pm ug on sale ALcounUng Pmductinn Sales Acmun ng mm Matrix Organization Boundaryless Organizations i J v i Toyota manages Starbucks achieved relationships with distribution success of hundreds of suppliers Frappuccino by partnering with Pepsi Mintzberg Five Basic Elements Operating Core Employees who perform the basic work related to an organization s product or service Strategic Apex Top level executives responsible for running an entire organization Middle Line Managers who transfer information between higher and lower levels of the organizational hierarchy Technostructure Organizational specialists responsible for standardizing various aspects of an organization s activities Support Staff Individuals who provide indirect support services to an organization Mintzberg A Summary TABLE 154 MINTZBERG S FIVE ORGANIZATIONAL FORMS A SUMMARY Mintzberg has identi ed five distinct organizational designs each of which is likely to occur in organizations in which certain groups are in power DESIGN DESCRIPTION DOMINANT GROUP EXAMPLE Simple structure Simple informal authority centralized in a single person Strategic apex Small entrepreneurial business Machine bureaucracy Highly complex formal environment with clear lines of Technostructure Government of ce authority Professional bureaucracy Complex decision making authority is vested in professionals Operating core University Divisionalized structure Large formal organizations with several separate divisions Middle line Multidivisional business such as General Motors Adhocracy Simple informal with decentralized authority Support staff Software development firm Source Based on suggestions by Mintzberg 1983 see Note 37 Learning Organization An organization that is successful at acquiring cultivating and applying knowledge that can be used to help it adapt to changes i Necessary steps Establish commitment to change Adopt an informal organizational structure Develop an open organizational culture Lewin s ThreeStep Model of Planned Chang Change Ensures that Ensures that employees Execute the the change are ready for intended becomes change change permanent Unfreeze Refreeze ta Active Passive iiliiiitiiiiii39niU iUJJiILF Resistance Resistance Resistance prohibited the Dvorak keyboard from becoming the norm Dvorak Keyboard lt gt Y F G C R L r 39 a N ll I l 2010 JuEitEnmagEs CalParana Disrupted r Habits Perceived Loss of I Personality Power Prevalence quot Feelings of ofChange Qwertainty Personal Impact of Change 39 Fa lm Fear of What can organizations do before change occurs to prepare employees Communicate a Plan for Change Develop a Sense of Urgency f a Do not get angry Know your rights 5111 6 a hunting skills Think about Get help your ideal job situation Power and Politics Chapter 13 An example of power Merrill Lynch in 2003 gtStan O Neal became the president in 2001 and eliminated top executives he saw as potential threats and became CEO and chairman in Dec 2002 gtThomas Patrick the second most senior executive in the firm and who helped O Neal to get the position and to purge the company secretly lobbied in 2003 to set his prot g Arshad Zakaria 41yearold as successordesignated gtO Neal 51yearold forced the 60yearold Patrick to retire first and fired Zakaria a week later F 5 Dependency The Key To Power The General Dependency Postulate The greater B s dependency on A the greater the power A has over B Possessioncontrol of scarce organizational resources Access to optional resources eg multiple suppliers reduces the resource holder s power Dependency Coach gets boss fired In Kansas Univ Roy Williams had been basketball coach for 15 years and fans and alumni loved him Williams graduated from UNC and was once a assistant coach there UNC was searching for a new coach in summer 2003 and wanted Williams KU tried to keep Williams with whatever they can including firing Williams boss athletic director Al Bohl who had numerous clashes with Williams Bohl said Kansas basketball coach had the power to hold his athletic director in his hand like a dove Despite of it Williams finally chose to return to UNC Bases of Power Barack Obama I Elected 44th US President i g Cabinet pos1tior1 appomtments I N litary Commanderin Chief l L V Briefed on national security issues I 0 Individuals differ on these as he 739 received 52 of the popular vote Power The Most Commonly Used In uence TactICs Resistance Compliance Commitment Ejg gsailon 54 47 30 23 Legitimating 13 44 56 0 133le 7 25 33 42 Exchange 7 24 41 35 Ingratiation 6 41 28 31 Pressure 6 56 41 3 Coalitions 3 53 44 3 212310 2 0 10 90 Consultation 2 18 27 55 From the Best Seller s List Making OB Connections How to Make Friends and In uence People written by Dale Carnegie in 1936 Recommendations 1 Become genuinely interested in other people 2 Smile 3 Remember that a person s name is to that person the sweetest and most important sound in any language 4 Be a good listener Encourage others to talk about themselves 5 Talk in terms of the other person s interests 6 Make the other person feel important and do it sincerely Political Skill Political skill refers to a person s interpersonal style including their ability to relate well to others selfmonitor alter their reactions depending on the situation and inspire con dence and trust Political Tactics 0Gaining control over and selective use of information 9Cultivating a favorable impression Building powerful coalitions GBlaming and attacking others 6Associating with powerful others Creating obligations and using reciprocity Sexual Harassment Unequal Power in the Workplace sexual harassment Unwelcome advances requests for sexual favors and other verbal or physical conduct of a sexual nature Politics Is in the Eye of the Beholder Political Label Blaming others quotKissing upquot Apple polishing Passing the buck Covering your rear Creating con ict Forming coalitions Whistleblowing Scheming Overachieving Ambitious Opportunistic Cunning Arrogant Perfectionist GIGEZEprewwwr VS VS VS VS VS VS VS VS VS VS VS VS VS V5 V5 PWPN9WPJNf U39IALUN Effective Managementquot Label Fixing responsibility Developing working relationships Demonstrating loyalty Delegating authority Documenting decisions Encouraging change and innovation Facilitating teamwork Improving ef ciency Planning ahead Competent and capable Careerminded Astute Practicalminded Confident Attentive to detail Managing Politics TABLE 121 HOW TO COMBAT ORGANIZATIONAL POLITICS Abolishing organizational politics completely may be impossible but managers can limit its effects Some e most successful tactics are summarized here SU GG ESTIO N Clarify job expectations Open the communication process Be a good role model Do not turn a blind eye to game players DESCRIPTION Political behavior is nurtured by highly ambiguous conditions To the extent managers help reduce uncertainty eg by giving precise work assignments they can minimize the likelihood of political behavior People have dif culty fostering their own goals at the expense of organizational goals when the communication process is open to scrutiny It is hard to get away with anythingquot when the system is open for all to examine Employees model the behavior of highereranking of cials Accordingly an openly political manager may encourage subordinates to behave in the same way Immediately confront an employee who attempts to take credit for another s work Managers who do not do so send a message that this kind of behavior is acceptab e Social Networks 39 A social network is a map or the relationships between individuals Asocial network analysis SNA is a systematic effort to examine the structure of social relationships in a group 2010 Jupitamages Corporation Network Ties and Key Network Roles 0 Those linked to the greatest number of people Central Connectors l People who connect one network to another People with special expertise that can be drawn upon even though they often work independently of the group Network Ties and Key Network Roles Group 1 Group 2 tral connector undary Spanner Gipheral Specialistl Ethics and Power The New York Stock Exchange NYSE NYSE trader Starting 1 Board members a rove salary 90000 pp Grasso s compensation package 188 million Richard Grasso former NYSE chairman total compensation is 1555 times more than a starting employee Grasso responsible for appointing many board members T he companies being regulated by the NYSE were the very same companies that were paying Grasso Hartman and Desj ardins Motivation in Organizations Chapter 56 Performance Dimensions Ability v Performance Motivation lt gt Opportunity yI Need Theories A Comparison Growth needs Maslovls Need Hierarchy Alderfel s ms Thenry meaty Theory X and Theory Y Douglas McGregor Theory X The assumption that employees dislike work are lazy dislike responsibility and must be coerced to perform Theory Y The assumption that employees like work are creative seek responsibility and can exercise self direction is one ofthe most in uential and practical methods of motivation It has been rated as the most important of 73 theories supported in over 1000 studies and is used by thousands of organizations 2010 Jupitaimages Corporation SMART Goals n Speci c m Measurable Aggressive Realistic TimeBound When Are Goals More Effective Feedback Downsides to Goal Setting Learning decreases Adaptability declines S1ngle mindedness develops Ethical problems increase Work hard to reach goals When goal accomplishment is rewarded and when rewards are desirable employees will have two basic options Justice Procedural Justice Wm iedmmn rims 6 Rim 1p 0 H 3de Tn Interactional Justice 1 Distributive Justice The degree to which outcomes received from the organization are fair Reinforcement Theory Manager Manager praises the Stops nagging employee the employee J Manager Manager demotes the Ignores the employee behaV1or Expectancy Theory Expectancy Instrumentality Valence l Effort l 3 Performance l l l 1 Will my effort 2 Will performance 3 Do I find the lead to high lead to outcomes performance outcomes desirable In uencing Expectancy Make sure employees have proper skills abilities and knowledge Ensure that the environment facilitates performance Encourage employees so they believe their effort makes a difference Instrumentality and Valence Expectancy Instrumentality i Find rewards that Reward employee performance Inform people in advance about the rewards Try to eliminate nonperformance in uence over rewards are desirable to employees Make sure that rewards are viewed as fair Give employees choice over rewards Job Characteristics Model Core Job Psychological Outcon les Characteristics States Motivation 0 Performance Satisfaction Absenteeism Meaningfulness 0 Responsibility Knowledge of results Skill variety Task identity Task signi cance Turnover Autonomy 0 Feedback Calculate Motivation Potential Score 7 MP8 K V Skill Variety 1 Task Identity Task Signi cance 7 l 39 X Autonomy x Feedback MPS Enriching Jobs TABLE 63 ENRICHING JOBS SOME SUGGESTIONS FROM THE JOB CHARACTERISTICS MODEL The job characteristics model specifies several ways jobs can be designed to incorporate the core job dimensions responsible for enhancing motivation and performance A few are listed here CORE JOB DIMENSIONS PRINCIPLES OF JOB DESIGN INCORPORATED 1 Combine tasks enabling workers to perform the entirejob Skill variety Task identity 2 Establish client relationships allowing providers of a service to meet Skill variety 39 39 nts Autonomy Feedback 3 Load jobs vertically allowing greater responsibility and control over work Autonomy 4 Open feedback channels giving workers knowledge of the results of their work Feedback Source Based on information in Hackman 1976 See Note 95 l lt3 Special Issues in Motivation Motivating Professionals Provide challenging projects Allow them the autonomy to be productive Reward with educational opportunities Reward with recognition Express interest in what they are doing Create alternative career paths Motivating Contingent Workers Provide opportunity for permanent status Provide opportunities for training Provide equitable pay Special Issues in Motivation cont d Motivating the Diversified Workforce Provide flexible work leave and pay schedules Provide child and elder care benefits Account for cultural differences and similarities Motivating LowSkilled Service Workers Recruit widely Increase pay and benefits Make jobs more appealing Motivating People Doing Highly Repetitive Tasks Recruit and select employees that fit the job Create a pleasant work environment Mechanize the most distasteful aspects of the job Emotion and Stress Chapter 7 Emotional Intelligence EQ Emotional Contagion Frustration Customer carnes to argues next w1th you customer Customer You argue leaves 1n a huff I back Emotional Labor emotional labor A situation in which an employee expresses organizationally desired emotions during interpersonal transactions canDu gm some exampleob or emottona labor Emotional Labor Employee Personality Genuine Acting Deep Acting Surface Acting Emotions And Ethics Joshua Green s Experiment Scenario 1 A trolley is racing down a track about to kill ve people You have the ability to steer the trolley onto another track where it will only kill 1 person Most felt this Was ok the lesser of two evils Scenario 2 A trolley is racing down a track about to kill ve people You can push a large man onto the tracks which will save the other ve Most felt the sacri ce was emotionally wrong Part of the HolmesRache Scale Divorce Death of close Marriage Marital reconciliation Change to di erent line of 36 Change in responsibilities at work 29 Outstanding personal achievement 28 in living in work hours or Minor violations of the Chance of Stress related 7 illness lt150 30 150 299 50 300 80 Hif ig Physiological 1 Nervousness Tension Headaches Anger Irritability Fatigue Depression Anxiety Workplace Stressors Top 10 Stressful Jobs 39EmOtional demand Inner City High School Teacher customer service 2 Police Of cer Physical demand 3 Miner Miner 4 Air Traf c Controller 39T39me proessure 5 Medical Intern JournahSt 6 Stockbroker Or all three police 7 Journalist 8 Customer Service Complaint Worker 9 Secretary 1 O Wai ter Organizational Approaches to Managing Stress Employee Assistance Programs Organizational Approaches to Managing Stress 7 2010 Jupitenmages Corpomuori Telecommutin hel s em 10 ees avoid traf c 39ams like this one Lack of Leisure Time and Stress Around the Globe 40 of Americans do not plan to take a vacation within the next year after their work and household obligations are ful lled Some Japanese employees work an average of 236 hours more per year than their American counterparts 0 Americans have 165 hours of leisure time per week and 500 more than employees in France or Germany Many Europeans take the month of August off Organizational Culture Chapter 15 What is Organizational Culture The culture of the organization is closely linked to organizational design Assumptions Values Artifacts Dimensions of Culture Organizational Culture Pro le OCP my may Mmme mjmj mgwmyg Teamoriented cultures are collaborative and emphasize cooperation among employees 2010 Jupiterimages Corporation K 1 tin an nin i 11 6 in all I a ft k Cultunne Attraction selectionattritien Founder values and preferences New employee onboari djng Organizatienal Culture Early values goals assumptions Leadership Industry demands Reward systems Cniltnnne Culture Maintenance Source httpcommonswikimediaorgwikiImageBenJerryUnitedSquarejpg The ma a m v gm f am Jwrygg wag ms m in the armmpmmy bacame fmmmc lws Mmmg y Pme mm rm sguueg Sm g u mtt v gm he peq d gt mguu g m Em am Jammy 5 mm larger mmmm u c brands The Vm umg wem mtga ma a palm f the cmpwmm cm mm mung m m mew mesmbers as film r g n quot way m 0102 hmg megg OB Toolbox You ve Got a New Job Now How Do You Get on Board Rewards In uence Culture Mission Statgliielit Rituals Stories ules 739 I PhySical olicies LaYOUt 6 Create new stories and symbols 5 Change the reward system 1 Create a sense of urgency 2 Change leaders and other key players 3 Role 4 Tra1n H model Diversity and National Culture Chapter 02 What is diversity 1 Diversity is they way in which people are similar or different from each other Bene ts of Diversity Higher creativity in decision making Better understanding and service of customers More Satisfied workforce Higher stock prices Lower litigation expense Higher company performance Challenges of Diversity Deep level The similarity diversity attraction Values phenomenon g es is the tendency to be Surface level more attracted diversity t0 individuals Gender Race who are Age Slmrlar to us Physical Disabilities Challenges of Diversity Afaultline is an Asian Female Caucasian Male attlilbUte along Asian Female Caucasian Male Wh1ch a group 15 1 Asian Female Caucasian Male spl1t Into subgroups quot Caucasian Female 4 w 1 f Asian Female CaucaSIan Male Asian Males 9 Asian Female Caucasian Male Challenges of Diversity Stereotypes are generalizations about a particular V kmgfoup Of people ACthC Passive Assertive Relationship oriented Gender Diversity 0 Earnings Gap Race DiVerSity Glass Ceiling Age Diversity OB Toolbox gt I think I am being asked illegal interview qUestions I Div ere try Bmfi toi J E Diverse 1 gt Organization Affirmative Action Pro gram 5 Cultural Diversity Culture refers to values beliefs and customs that exist in a society IndividualismCollectivism Individualism Cultures in which 13601316 d ne themselves as an individual arid farm llgoser ties with their groups C39olleetivism Cultures where people have Stronger bonds to their groups and group membership fenns a person s self identity USA Australia UK Canada Hungary 0 Guatemala 0 Ecuador 0 Indonesia to Pakistan 0 China Power Distance Austria 0 Malaysia Denmark 0 Slovakia Israel Phillippines Ireland 0 Russia New Zealand 0 Mexico Uncertainty Avoidance Low Uncertainty Avoidance Cultures that are comfortable in unpredictable situations and have high tolerance for ambiguity High Uncertainty Avoidance Cultures that prefer predictable situations and have low tolerance for ambiguity Denmark Jamaica Singapore China Sweden 0 Belgium 0 El Salvador 0 Greece 0 Guatemala 0 Portugal Slovakia Japan Hungary Austria Venezuela Norway Netherlands Sweden Costa Rica Chile OB Toolbox Prepare Yourself for a Global Career Learn a language Immerse yourself in different cultures Develop an openness to different experiences intelligence is understand how a person s cultural background in uences Kbehavior the capability to Build Cultural Intelligence l Cultural i cultures V quot Ethnocentrism is the belief that one s own culture is superior to other Do Not Always Assume Culture Is the Problem When marketing people from the United States interact with engineers in other countries misunderstanding can occur due to the difference in Viewpoint between marketing and engineering employees rather than different cultural backgrounds