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by: Frankie Hansen


Frankie Hansen
OK State
GPA 3.68

James Pappas

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James Pappas
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This 0 page Class Notes was uploaded by Frankie Hansen on Sunday November 1, 2015. The Class Notes belongs to MGMT 3013 at Oklahoma State University taught by James Pappas in Fall. Since its upload, it has received 17 views. For similar materials see /class/232949/mgmt-3013-oklahoma-state-university in Business, management at Oklahoma State University.

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Date Created: 11/01/15
Chapter 10 Organizational Change amp Innovation 101 The Nature of Change in Organizations Fundamental Change What Will You Be Called On to Deal With 1 The Marketplace Is Becoming More Segmented amp Moving Toward More Niche Products a Demassification customer groups becoming segmented into smaller and more specialized groups responding to more narrowly targeted commercial messages 2 More Competitors Are Offering Targeted Products Requiring Faster SpeedtoMarket a Companies offering a broad range of products or services are now experiencing intense pressure from competitors offering specialized solutions and beating them to the punch by devising novel speedtomarket strategies b Speed is ultimate competitive weapon 3 Some Traditional Companies May Not Survive Radically Innovative Change a When successful companies are confronted with a giant technological leap that transforms their markets all choices are bad ones because it s very difficult for an existing successful company to take full J t u ofa 39 39 u39 quot 39 39 D39 such as digitalization 4 China India amp Other Offshore Suppliers Are Changing the Way We Work a Offer workers and even professionals willing to work twice as hard for half the pay gives American businesses huge labor savings b While some American jobs are lost others become more productive because employees aren t doing routine things which leaves more time for innovation 5 Knowledge Not Information Is Becoming the New Competitive Advantage a Information becoming a profitless commodity b As information technology does more of the work formerly done by humans even in hightech areas such as sorting data for relevance many lowlevel employees previously thought of as knowledge workers are now being recognized as lldata workersquot who contribute very little added value to the processing of information c Knowledge work is analytic and involves problem solving and abstract reasoning Two Types of Change Reactive versus Proactive 1 Reactive Change Responding to Unanticipated Problems amp Opportunities a Reactive Change making changes in response to problems or opportunities as they arise b Less time to get all the information and resources you need to adequately manage the change and serious mistakes may be made 2 Proactive Change Managing Anticipated Problems amp Opportunities a Proactive Change or planned change involves making carefully thoughtout changes in anticipation of possible or expected problems or opportunities The Forces for Change Outside 8 Inside the Organization 1 Forces Originating Outside the Organization a Demographic Characteristics i Workforce becoming more diverse ii Millennial born after 1980 very different from parents in every way b Market Changes i Global economy changed the way we do business ii Great Recession c TechnologicalAdvances i Greatest force for productivity in our lifetime but it can also create real headaches for somebody d Social amp Political Pressures 39 Example Changing eating habits have led to such a surge in weight gain that by 2015 two out of every 5 Americans may be obese Example pressure on companies to make their products earth friendly made it difficult for consumers to differentiate green and greenwashing 2 Forces Originating Inside the Organization a Employee Problems i Job dissatisfaction high absenteeism and high turnover 39i Organizations may respond by addressing job design reducing employees role conflicts dealing with work overload b Managers Behavior i Excessive conflict between managers and employees Areas in Which Change Is Needed People Technology Structure amp Strategy 1 Changing People a Perceptions i Employees might feel they are underpaid for what they do b Attitudes i In oldline manufacturing industries employees may feel that it is the nature of things that they should be in an adversarial relationship with their managers c Performance i Find incentives to improve people s performance d Skills i Altering or improving skill levels is often an ongoing challenge particularly when new forms of technology can change an organization s way of doing business 2 Changing Technology a Technology not just computer technology it is any machine or process that enables an organization to gain a competitive advantage in changing materials used to produce a finished project 3 Changing Structure a Changes in strategy often require changes in structure b Flattening the hierarchy and to use work teams linked by electronic networks 4 Changing Strategy a Necessary to change strategy after shifts in marketplace b Example music industry 102 Organizational Development What it is What is can do Terms 1 Organizational Development OD is a set of techniques for implementing planned change to make people and organizations more effective a Focuses on people in the change process 2 Change Agent a 39 with a 39 39g 39 in 39 39 39 39 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 a OD experts called in to be executive coach to help advise an executive on how to improve relationships with others in organization 2 Revitalizing Organizations a OD can help information technology changes in organizations by opening communication fostering innovation and dealing with stress 3 Adapting to Mergers a Mergers and acquisitions are associated with increased anxiety stress absenteeism turnover and decreased productivity b OD experts can help integrate two firms with varying cultures products and procedures Ilow OD Works 1 Diagnosis What is the Problem a OD consultants use some combination of questionnaires surveys interviews meetings records and direct observation to ascertain people s attitudes to identify problem areas 2 Intervention What Shall We Do About It a Intervention is the attempt to correct the diagnosed problems b OD consultant works in conjunction with management teams c Some OD activities for implementing planned change are communicating survey results to employees to engage them in constructive problem solving observing employee communication patterns and teaching them skills to improve them helping group members learn to function as a team stimulating better cohesiveness among several work groups and improving work technology or organizational design 3 Evaluation How Well Has the Intervention Worked a OD consultant looks back into data of absenteeism turnover grievances profitability b Reuse questionnaires surveys interviews to see if there is change in employee attitude The Effectiveness of OD 1 Multiple Interventions a Goalsetting feedback recognition and rewards training participation and challenging job design create good OD results b Combined interventions work better than single interventions 2 Management Support a OD is more likely to succeed when top managers give their support and are committed to the change process and desired goals 3 Goals Geared to Both Short amp LongTerm Results a OD programs are more successful when they are oriented toward achieving both short term and longterm results b Change efforts should produce positive results 4 OD is Affected by Culture a OD effectiveness is affected by crosscultural considerations 103 Promoting Innovation Within the Organization Terms 1 Creativity the process of developing something new or unique 2 Innovation the activity of creating new ideas and converting them into useful applications specifically new goods and services a More likely to occur when organizations have the proper culture resources and reward systems to support it How Good Are US Firms At Innovating 1 Companies are pouring money into research and development instead of working to understand what the customer wants and then using the understanding to drive innovation 2 Too much 39 39 39g and I 39 can kill 39 39 because people quit thinking quotwhat ifquot and look at quotwhat is which limits approach to challenge Two Myths About Innovation 1 Innovation Happens in a quotEurekaquot Moment a Most of the time instead of a quotEurekaquot moment innovation is the product of hard work and dedication 2 Innovation Can Be Systematized a The problem with innovation however is that there are too many challenges associated with it which makes success unpredictable although it s possible to establish cultural and other conditions that increase the likelihood of a payoff The Seeds of Innovation Starting Point for Experimentation amp Inventiveness Term Seeds of Innovation starting point for organizational innovation 1 Hard Work in a Specific Direction a Most innovations come from dedicated people diligently working to solve a welldefined problem 2 Hard Work with Direction Change a Innovations frequently occur when people change their approach to solving a problem b Hard work closes some doors and opens others 3 Curiosity a Innovations can begin when people are curious about something of interest to them 4 Wealth amp Money a Innovations frequently occur because an organization or an individual simply wants to make money 5 Necessity a Innovations grow from the desire to achieve something or to complete a task that is needed to accomplish a quotbroaderquot goal 6 Combination of Seeds Types of Innovation Product or Process Incremental or Radical 1 Product versus Process Innovations a Product Innovation a change in the appearance or the performance of a product or a service or the creation of a new one i Improve company s product or service usually technological innovation b Process Innovation a change in the way a product or service is conceived manufactured or disseminated i Improve process by which product or service is created manufactured distributed usually managerial innovation 2 Incremental versus Radical Innovations a Incremental Innovations the creation of products services or technologies that modify existing ones b Radical Innovations the creation of products services or technologies that replace existing ones Celebrating Failure Cultural amp Other Factors Encouraging Innovation 1 Culture Is Innovation Viewed as a Benefit or a Boondoggle a Most new ideas will fail but if an organization doesn t encourage this kind of risk taking that organization won t become a superstar in innovation 2 Resources Do Managers Put Money Where Their Mouths Are a Innovation doesn t come cheap costs can be measured in dollars time energy and focus 3 Rewards Is Experimentation Reinforced in Ways that Matter a Salespeople are rewarded with incentives such as commissions bonuses and perks RampD should also be b People should not be punished when their attempts to innovate don t work out How You Can Foster Innovation Four Steps 1 Recognize Problems amp Opportunities amp Devise Solutions a Recognizing a problem find a llbetter wayquot i Problems tend to seize our attention and sometimes these problems suggest solutions such as new business ideas b Recognizing an opportunity i May come from longterm employees who regularly expose themselves to new ideas 2 Gain Allies by Communicating Your Vision a Showing how the product or service will be made i Figure out how to profitably make the new product or deliver new service b Showing how potential customers will be reached i Consider breaking down the task of what the customer wants into discrete steps c Demonstrating how you ll beat your competitors i Other companies may be pursuing the same breakthroughs thus it s better to focus on a smaller number of innovations d Explaining when the innovation will take place i Think about when employees will be prepared to make the product and customers ready to buy it 3 Overcome Employee Resistance amp Empower amp Reward Them to Achieve Progress a Get support from subordinates b If they resists remove obstacles that limit them in executing the vision c Hand out periodic rewards 4 Execute Well a Execution process of discussing hows and whats of using questioning analysis and followthrough to achieve results promised and ensure accountability b Execution requires effective management of people groups and organizational processes and systems in pursuit of innovation c Innovation process must be managed 104 The Threat of Change Managing Employee Fear amp Resistance The Causes of Resistance to Change Term Resistance to Change is an emotionalbehavioral response to real or imagined threats to an established work routine 1 Employee Characteristics a Characteristics of a given employee consist of his or her individual differences actions and inactions and perceptions of change 2 ChangeAgent Characteristics a Characteristics of change agent individual who is a catalyst in helping organizations change also consist of his or her individual differences actions and inactions and perceptions of change b Characteristics that might contribute to employee resistance leadership style personality tactfulness sense of timing awareness of cultural traditions or group relationships and ability to emphasize with the employee s perspective 3 Change AgentEmployee Relationship a Must trust eachother The Degree to Which Employees Fear Change From Least Threatening to Most Threatening 1 Least Threatening a Adaptive Change is reintroduction of a familiar practice b Implementation of a kind of change that has already been experienced within the same organization c Lowest in complexity cost and uncertainty 2 Somewhat Threatening Change a Innovative Change the introduction of a practice that is new to the organization b Involves moderate complexity cost and uncertainty and therefore triggers some fear and resistance 3 Very Threatening Radically Innovative Change a Radically Innovative involves introducing a practice that is new to the industry b Highly complex cost and uncertain and therefore creates a lot of fear and resistance c Extremely threatening to managers confidence and employees job security and may well tear at the fabric of the organization 4 Ten Reasons Employees Resist Change a Individual s predisposition toward change i How they learned to handle change and ambiguity as childeren b Surprise and fear of the unknown 39 When radically different changes are introduced without warningno official announcement the office rumor will go into high gear and affected employees will become fearful of the implications of the changes Keep all relevant parties informed Climate of mistrust i Trust involves reciprocal faith in others intentions and behaviors ii Mistrust encourages secrecy iii Managers should make change process open honest and a participative affair Squot Fear of failure i Selfdoubt erodes selfconfidence and cripples personal growth and development Loss of status or job security i Administrative and technological changes that threaten to alter power bases or eliminate jobs generally trigger strong resistance Peer pressure i People not directly affected by impending changes may still actively resist in order to protest the interests of their colleagues Disruption of cultural traditions or group relationships i Whenever individuals are transferred promoted or reassigned it can disrupt existing cultural and group relationships Personality conflicts i The personalities of change agents can breed resistance Lack of tact or poor timing i Introducing changes in an insensitive manner or at an awkward time can create 53 5 r In 7 employee resistance ii Employees are more apt to accept changes when managers effectively explain their value in demonstrating their strategic purpose to the organization Nonreinforcing reward systems i Employees are likely to resist when they can t see any positive rewards from proposed changes Lewin s Change Model Unfreezing Changing amp Refreezing Person Kurt Lewin social psychologist 1 llUnfreezingquot Creating the Motivation to Change Managers try to instill in employees the motivation to change encouraging them to let go of attitudes and behaviors that are resistant to innovation b Employees need to become dissatisfied with the old way of doing things c Managers also need to reduce the barriers to change 2 quotChangingquot Learning New Ways of Doing Things a Employees need to be given the tools for change new information perspectives models of behavior b Managers can help by providing benchmarking results role models mentors experts and training c Convey idea that change is a continuous learning process notjust a onetime event 3 llRefreezingquot Making the New Ways Normal a Benchmarking a process by which a company compares its performance with that of highperforming organizations Employees need to be helped to integrate the changed attitudes and behavior into their normal ways of doing things Managers can assist by encouraging employees to exhibit the new change and then through additional coaching and modeling by reinforcing the employees in the desired change Kotter39s Eight Steps Leading Organizational Change Person John Kotter expert in leadership and change management believes that to be successful organizational changes needs to follow eight steps to avoid the eight common errors senior management usually commits mvmwewwe Steps 14 unfreezing Steps 57 changing Step 8refreezing Establish a sense of urgency Create a guiding coalition Develop a vision and a strategy Communicate the change vision Empower broadbased action Generate shortterm wins Consolidate gains and produce more change Anchor new approaches in culture Chapter 11 Managing Individual Differences amp Behavior 111 Personality amp individual Behavior Term Personality consists of the stable psychological traits and behavioral attributes that give a person his or her identity 1 The Big Five Personality Dimensions 2 a b c 53 Extroversion how outgoing talkative sociable and assertive a person is Agreeableness how trusting goodnatured cooperative and softhanded one is C 39 39 how 39 39 39 39 quot 39 39 39 talented and persistent one is Emotional Stability how relaxed secure and unworried one is Openness to r how 39 39 C curious and broadminded one is Do Personality Tests Work for the Workplace a b Extroversionthe outgoing personality i Extroversion is associated with success for managers and salespeople ii Extroversion is a stronger predictor ofjob performance than agreeableness C 39 39 the 39 I 39 39 39 strong work ethic Conscientiousness has been found to have the strongest positive correlation with job performance and training performance Those individuals who exhibit traits associated with a strong sense of purpose obligation and persistence generally perform better than those who do not 3 The Proactive Personality a Proactive Personality someone who is more apt to take initiative and persevere to influence the environment i People of this sort of indemnify opportunities and act on them which makes them associated not only with success but also entrepreneurship 4 Cautions about using personality tests in the workplace a Use professionals rely on reputable licensed psychologists for selecting and overseeing the administration scoring and interpretation b Don t hire on the basis of personality test results alone supplement any personality test data with information from reference checks personal interviews ability tests and job performance records c Be alert for gender racial and ethnic bias regularly assess any possible adverse impact of personality tests on the hiring or women and minorities d Graphology tests don t work but integrity tests do Five Traits Important in Organizations 1 Locus of Control ll AmAm Not the Captain of My Fate a Locus of Control indicates how much people believe they control their fate through their own efforts b Internals exhibit less anxiety greater work motivation and stronger expectations that effort leads to performance they also obtain higher salaries i Expect different degrees of structure and compliance for each type 1 Internals resist close managerial supervision place in jobs requiring high initiative and lower compliance 2 Externals do better in highly structured jobs requiring greater compliance ii Employ different reward systems for each type 1 Internals seem to have a greater belief that their actions have a direct effect on the consequences of that action and therefore respond more productively to incentives such as merit pay or sales commissions 2 SelfEfficacy ll CanCan t Do This Task a SelfEfficacy belief in one s personal ability to do a task i Your personal belief that you have what it takes to succeed b Learned Helplessness the debilitating lack of faith in one s ability to control one s environment i Assign jobs accordingly 1 Complex challenging and autonomous jobs tend to enhance people s perceptions of their selfefficacy boring tedious jobs generally do the opposite ii Develop selfefficacy 1 Selfefficacy is a quality that can be nurtured 2 Employees with low selfefficacy needs lots of constructive pointers and positive feedback S 3 Goal difficulty needs to match individual s perceived selfefficacy but goals can be made more challenging as performance improves reward small successes SelfEsteem LikeDislike Myselfquot a SelfEsteem the extent to which people like or dislike themselves their overall self evaluation i People with high selfesteem 1 Apt to handle failure better emphasize the positive to take more risks and to choose more unconventional jobs 2 When dealing with pressure become egotistical and boastful ii People with low selfesteem 1 When confronted with failure focus on their weaknesses and have primarily negative thoughts 2 They are more dependent on others and are more apt to be influenced by them and to be less likely to take independent positions b Ways to build selfesteem 39 Reinforce employees positive attributes and skills Provide positive feedback whenever possible Break larger projects into smaller tasks and projects iv Express confidence in employees abilities to complete their tasks v Provide coaching whenever employees are seen to be struggling to complete tasks SelfMonitoring llI m Fairly AbleUnable to Adapt My Behavior to Othersquot a SelfMonitoring is the extent to which people are able to observe their own behavior and adapt it to external situations b High selfmonitors are criticized for being chameleons always able to adapt their self presentation to their surroundings c Low selfmonitors are criticized for being on their own planet and insensitive to others d Top management are more apt to be high selfmonitors positive relationship between high selfmonitoring and career success Emotional Intelligence llI m Pretty GoodNot Good at Understanding My Emotions amp the Emotions of Othersquot a Emotional Intelligence is the ability to cope to emphasize with others and to be self motivated b Also defined as the ability to carry out accurate reasoning about emotions and the ability to use emotions and emotional knowledge to enhance thought c Daniel Golemann i SelfAwareness 1 Most essential trait 2 Ability to read your own emotions and gauge your moods accurately so you know how you re affecting others ii SelfManagement 1 Ability to control your emotions and act with honesty and integrity in reliable and adaptable ways iii Social Awareness 1 This includes empathy allowing you to show others that you care and organizational intuition so you keenly understand how your emotions and actions affect others iv Relationship management 1 Ability to communicate clearly and convincingly disarm conflicts and build strong personal bonds d Develop awareness of your El level i Become aware of your level of emotional intelligence e Learn about areas needing improvement i Learn more about El aspects in which you need improvement 112 Values Attitudes amp Behavior Organiza tional Behavior Trying to Explain 8 Predict Workplace Behavior 1 Organizational Behavior OB which is dedicated to better understanding and management of people at work tries to help managers explain workplace behavior and predict it a Individual Behavior individual attributes as values attitudes personality perception and learning b Group Behavior norms roles and teams Values What Are Your Consistent Beliefs 8 Feelings about All Things 1 Values are abstract ideals that guide one s thinking and behavior across all situations a Lifelong behavior patterns are dictated by values that are fairly well set by the time people are in their early teens b After that one s values can be reshaped by significant lifealtering events such as a baby business failure surviving the death of a loved one war serious health treatment c From a manager s point of view it s helpful to know that values are those concepts principles things people or activities for which a person is willing to work hard and make sacrifices for Attitudes What Are Your Consistent Beliefs amp Feelings about Specific Things 1 Attitude a learned predisposition toward a given object 2 The Three Components of Attitudes Affective Cognitive amp Behavioral a Affective consists of the feelings or emotions one has about a situation quotI feel b Cognitive consists of the beliefs and knowledge one has about a situation quotI believe c Behavioral how one intends or expects to behave toward a situation aka intentional component quotI intend 3 All three components are often manifested at any given time 4 When Attitudes amp Reality Collide Consistency amp Cognitive Dissonance a Cognitive Dissonance to describe the psychological discomfort a person experiences between his or her cognitive attitude and incompatible behavior b Leon Festinger i 1957 social psychologist ii Theorized that because people are uncomfortable with inconsistency they will seek to reduce the quotdissonancequot or tension of the inconsistency c Factors i Importance 1 How important are the elements creating the dissonance 2 Most people can put up with some ambiguities in life ii Control 1 How much control does one have over the matters that create dissonance iii Rewards 1 What rewards are at stake in the dissonance 2 You re apt to cling to old ideas in the face of new evidence if you have a lot invested emotionally or financially in those ideas d Ways to reduce cognitive dissonance i Change your attitude andor behavior ii Belittle the important of inconsistent behavior iii Find consonant elements that outweigh the dissonant ones 1 Employee is confronted with ethical dilemmas but fears losing his job Behavior How Values 8 Attitudes Affect People39s Actions amp Judgements 1 Behavior actions and judgments 2 Values global and attitudes specific are generally in harmony but not alwasy 113 WorkRelated Attitudes amp Behaviors Managers Need to Deal With lob Involvement Being Immersed in One s lob 1 Job Involvement the extent to which an individual is immersed in his or her presentjob a Job involvement is positively associated with job satisfaction organizational commitment and intrinsic motivation and is negatively associated with intentions to quit WorkRela ted Attitudes Employee Engagement Job Satisfaction amp Organizational Commitment 1 Employee Engagement How Connected Are You to Your Work a Employee Engagement an individual s involvement satisfaction and enthusiasm for work b Engaged employees are expected to be more committed to their employer and to put more effort into their jobs c When an employee is engaged it can take 10 times as much money to lure him away as a disengaged employee 2 Job Satisfaction How Much Do You Like or Dislike Your Job a Job Satisfaction the extent to which you feel positive or negative about various aspects of your work b Most people don t like everything about their jobs their overall satisfaction depends on how they feel about several components such as work pay promotion coworkers supervision c Key correlates ofjob satisfaction are stronger motivation job involvement organizational commitment and life satisfaction and less absenteeism tardiness turnover and perceived stress d Both job satisfaction and performance effect each other 3 OrganizationalCommitment a Organizational Commitment reflects the extent to which an employee identifies with an organization and is committed to its goals 13 b Research shows a strong positive relationship between organizational commitment and job satisfaction and a moderate association with job performance c Managers are advised to increase job satisfaction to elicit higher levels of commitment in turn higher commitment can facilitate higher performance Important Workplace Behavior 1 Evaluating Behavior When Employees Are Working Performance amp Productivity a Every job ha certain expectations but in some jobs performance and productivity are easier to define than others b Method of evaluating performance must match the job being done 2 Evaluating Behavior When Employees Are Not Working Absenteeism ampTurnover a Absenteeism when an employee doesn t show up for work i Some absences are legitimate but a lot of noshow behavior is related to job dissatisfaction ii Top 3 reasons for bogus sick days are for doing personal errands catching up on sleep and relaxing b Turnover when employees leave their jobs i Every organization experiences some turnover due to family better job prospects or retirement ii Except in lowskill industries a continual revolving door of new employees is not a good sign since replacement and training is expensive 3 Evaluating Behavior That Exceeds Work Roles Organizational Citizenship Behaviors a Organizational Citizenship Behaviors those employee behaviors that are not directly part of employees job descriptionsthat exceed their workrole requirements b Research demonstrates a significant and moderately positive correlation between organizational citizenship behaviors and job satisfaction productivity efficiency and customer satisfaction 4 Evaluating Behavior That Harms the Organization Counterproductive Work Behaviors a Counterproductive Work Behaviors CWB types of behavior that harm employees and the organization as a whole b Include absenteeism and tardiness drug and alcohol abuse and disciplinary problems but also extend beyond them to more serious acts such as accidents sabotage sexual harassment violence theft and whitecollar crime c Organization should respond quickly and appropriately defining specific behaviors that are I quot and the 1 39 I quot ehavior d Applicants that score high on cognitive ability intelligence tests are less likely to be involved in violence and property damage after they are hired e Employees are also less likely to engage in CWB if they have satisfying jobs that offer autonomy or that don t require them to supervise too many people 114 Perception amp Individual Behavior The Four Steps in the Perceptual Process 1 Perception the process of39 r 39 g and 2 Four Steps in Perceptual Process a Selective Attention i Did I notice something Uones b Interpretation amp Evaluation i What was it I noticed amp what does it mean c Storing in memory i Remember it as an event concept person or all three d Retrieving from memory to make judgments amp decisions i What do I recall about that Four Distortions in Perception 1 Selective Perception Don t Want to Hear about That a Selective Perception the tendency to filter out information that is discomforting that seems irrelevant or that contradicts one s beliefs b Topics you find especially uncomfortable so that you tune out these subjects when people bring them up c Example executives asked to determine the key problem in a complex business case they identified the problem as falling within their particular functional areas of work and filtering out information about other areas or departments 2 Stereotyping llThose Sorts of People Are Pretty Much the Samequot a Stereotyping tendency to attribute to an individual the characteristics one believes are typical of the group to which that individual belongs i Sexrole stereotypes 1 Differing traits and abilities make males and females particularly well suited to different roles ii Age stereotypes 1 Older workers as less involved in their work less satisfied less motivated and less committed 2 Research actually shows that as employees age increases so does their 39 39 and 39 f 39 work 39 39 and organizational commitment 3 Stereotypes also depict older workers as being less creative and more accident prone and that they have higher absenteeism iii Raceethnicity stereotypes 3 The Hale Effect llOne Trait Tells Me All Need to Know a Halo Effect we form an impression of an individual based on a single trait b People think attractive people have more desirable traits than unattractive people such as happier kinder more successful more socially skilled more sensitive more interesting independent exciting sexually warm even smarter and nicer 4 Casual Contributions a Casual Contribution the activity of inferring causes for observed behavior i Fundamental Attribution Bias people attribute another person s behavior to his or her personal characteristics rather than to situational factors 1 Example a study of manufacturing employees found that top managers attribute the cause of industrial back pain to individuals whereas workers attributed it to the environment ii Selfserving Bias people tend to take more personal responsibility for success than for failure 1 Example the way students typically analyze their performance on exams shows selfserving bias with quotAquot students likely to attribute their 15 grade to high ability or hard work and quotDquot students blaming factors such as bad luck unclear lectures and unfair testing SelfFulfilling Prophecy or Pygmalion Effect 1 Selffulfilling prophecy aka Pygmalion Effect describes the phenomenon in which people s expectations of themselves or others lead them to behave in ways that make those expectations come true a Expectations are important b Research has shown that by raising managers expectations for individuals performing a wide variety of tasks higher levels of achievement and productivity can be achieved c When you expect employees to perform badly they will and viceversa 115 Understanding Stress amp Individual Behavior Terms 1 Stress the tension people feel when they are facing or enduring extraordinary demands constraints or opportunities and are uncertain about their ability to handle them effectively 2 Stressor the source of stress The Toll of Workplace Stress 1 American Institute of Stress eliminates that workplace stress costs the US economy over 300 billion a year in healthcare missed work and stressreduction treatment 2 Stress can cause conflicts at work make you fatigued all the time and generate problems like insomnia backaches headaches and chest pain 3 Managers run twice the normal risk of heart attack the week after they have had to fire someone or face a highpressure deadline 4 Men who suppress anger at work are at risk two to five times more likely to suffer heart attacks or die from heart disease as those who express their desk rage 5 Layoffs more than doubled the risk of heart attack and stroke among older workers Optimal performance comes when employees are moderately stressed 9 How Does Stress Work 1 Stress has both physical and emotional components 2 Physically nonspecific response of the body to any demand made upon it 3 Emotionally feeling of being overwhelmed perception that events or circumstances have challenged or exceeded a person s ability to cope 4 Hassles simple irritants 5 Crises sudden occasions of overwhelming terror 6 Strong Stressors dramatically strain a person s ability to adapt 7 It doesn t matter whether stress is positive or negative all that matters is the intensity of the demand for adjustment and adaptation 8 Distress bad stress in which the result of the stressor can be anxiety and illness 9 Eustress good stress which can stimulate a person to better coping and adaptation The Sources oflobRelated Stress 1 Demands Created by Individual Differences the Stress Created by Genetic or Personality Characteristics 16 a Type A Behavior Pattern meaning they are involved in a chronic determined struggle to accomplish more in less time 39 Associated with increased performance in the work of professors students and life insurance brokers Associated with greater cardiovascular activity and higher blood pressure as well as to heart disease especially for individuals who showed strong feelings of anger hostility and aggression 2 Individual Task Demands The Stress Created by the Job Itself a Some occupations are more stressful than others b Lowlevel jobs can be more stressful than highlevel jobs because employees often have less control over their lives and thus have less work satisfaction c Considerable stress caused by worries over the prospective loss of a job d Job security is an important stressor to manage because it can result in reduced job satisfaction organizational commitment and performance 3 Individual Role Demands The Stress Created by Others Expectations of you a Roles sets of behaviors that people expect of occupants of a position i Role Overload 1 Occurs when others expectations exceed one s ability ii Role Conflict 1 Occurs when one feels torn by the different expectations of important people in one s life iii Role Ambiguity 1 Occurs when others expectations are unknown 4 Group Demands The Stress Created by Coworkers amp Managers a Even if you don t particularly care for the work you do but like the people you work with that can be a great source of satisfaction and prevent stress b When people don t get along that can be a great stressor c Alternatively even if you have stress under control a coworker s stress might bother you diminishing productivity d Manager can create employee stress exhibiting inconsistent behaviors failing to provide support showing lack of concern providing inadequate direction creating a demanding high productivity environment and focusing on negatives while ignoring good performance e People who have bad managers are five times more likely to have stressinduced headaches upset stomachs and loss of sleep 5 Organizational Demands The Stress Created by the Environment amp Culture a An organizational culture that promotes highpressure work demands on employees will fuel the stress response poor lighting too much noise improper placement of furniture no privacy b Pace of information technology adds to stress c Onset of a lot of technologies is blurring the boundary between industries that were quite separate creating opportunities for industries to attack each other such rapidly changing technologies and financial pressures are what keep top executives up at night 6 Nonwork Demands The Stresses Created by Forces Outside the Organization a People with lower incomes education level and work status are particularly apt to have higher stress from outside work The Consequences ofStress 1 Symptoms of Stress a Physiological Signs i Lesser signs sweaty palms restlessness backaches headaches upset stomach and nausea ii Serious signs hypertension heart attacks b Psychological Signs i Symptoms boredom irritability nervousness anger anxiety hostility depression c Behavioral Signs i Symptoms sleeplessness changes in eating habits increased smokingalcoholdrug use ii Stress may be revealed through reduced performance and job satisfaction 2 Burnout a state of emotional mental and even psychical exhaustion a Expressed as listlessness indifference frustration b Greatest consequence of negative stress for the organization is reduced productivity c Overstressed employees are apt to call in sick miss deadlines take longer lunch breaks show indifference to performance however some may put in great number of hours at work without getting as much accomplished as previously 3 Alcohol amp Other Drug Abuse a quot39 39 quot a chronic r g 39 and r 39 quot fatal disease characterized bya growing compulsion to drink b Alcohol is the most common drug of abuse c Legal drugs such as tranquilizers or illegal drugs such as marijuana ecstasy cocaine heroin d If you are dealing with an employee with a substanceabuse problem it s suggested you not try to make accusations but firmly point out that productivity is suffering and that it s up to the subordinate to do something about it Reducing Stressors in the Organization 1 Buffers administrative changes that managers can make to reduce the stressors that lead to employee burnout a Extra staff or equipment at peak periods increased freedom to make decisions recognition for accomplishments time off to rest or personal development assignment to a new position threeto5day employee retreats at offsite locations for relaxation and teambuilding activities b Sabbatical leave programs to replenish employees energy and desire to work 2 OrganizationalStrategies a Employee Assistance Programs EAPs include a host of programs aimed at helping employees to cope with stress burnout substance abuse healthrelated problems family and marital issues and any general problem that negatively influences job performance Holistic Wellness Program focuses on selfresponsibility nutritional awareness relaxation techniques physical fitness and environmental awareness i This approach goes beyond stress reduction by encouraging employees to strive in one definition for lla harmonious and productive balance of physical mental and social wellbeing brought about by the acceptance of one s 57 personal responsibility for developing and adhering to a health promotion rogram c Create a supportive environment i Job stress often results because employees work under poor supervision and lack freedom ii It s better to keep the organizational environment less formal more personal and more supportive of employees d Make jobs interesting i Stress also results when jobs are routinized and boring ii Better to try to structure jobs so that they allow employees some freedome e Make career counseling available Chapter 12 Motivating Employees 121 Motivating For Performance Motivation What it is Why it39s important What is motivation amp how does it work a Motivation the psychological processes that arouse and direct goaldirected behavior b Rewards i Extrinsic rewards the payoff such as money a person receives from others performing a particular task external reward because the payoff comes from pleasing others ii Intrinsic rewards the satisfaction such as a feeling ofaccomplishment a person receives from performing the particular task itself internal reward because the payoff comes from pleasing yourself c Simple Model of Motivation i Unfulfilled need desire is created to fulfill a needas for food safety recognition ii Motivation you search for ways to satisfy that need iii Behaviors you choose a type of behavior you think might satisfy the need iv Rewards two types of rewards satisfy needsextrinsic or intrinsic v Feedback reward informs you whether behavior worked or should be used again 2 Why is motivation important a Join your organization i You need to instill in talented prospective workers the desire to come work for you Stay with your organization i Whether you are in good economic times or bad you always want to be able to retain good people c Show up for work at your organization i In many organizations absenteeism and lateness are tremendous problems d Be engaged while at your organization 57 i Engaged employees produce higherquality work and better customer service e Do extra for your organization i You hope your employees will perform extra tasks above and beyond the call of duty be organizational llgood citizens The Four Major Perspectives on Motivation Overview Content Process Job Design Reinforcement PPN 122 Content Perspectives on Employee Motivation Terms 1 Content Perspectives aka needbased perspectives are theories that emphasize the needs that motivate people 2 Needs physiological or psychological deficiencies that arouse behavior can be strong or weak and because they are influenced by environmental factors they can vary over time and from place to place Maslow s Hierarchy of Needs Theory Five Levels 1 The Five Levels of Needs a Physiological Needs These are the most basic human physical needs in which one is concerned with having food clothing shelter and comfort and with selfpreservation b Safety Needs these needs are concerned with physical safety and emotional security so that a person is concerned with avoiding violence and threats c Love Needs once basic needs and security are taken care of people look for love friendship and affection d Esteem Needs after they meet their social needs people focus on such matters as self respect status reputation recognition and selfconfidence e SelfActualization Needs the highest level of need selfactualization is selffulfillment the need to develop one s fullest potential to become the best one is capable of being 2 Using the Hierarchy of Needs Theory to Motivate Employees a Important because showed employees needs involve more than just a paycheck b To the extent organizations permit managers should try to meet employees level 1 and level 2 need so employees aren t preoccupied with them c Then give employees a chance to fulfill their higherlevel needs in ways that also advance the goals of the organization 3 Abraham Maslow a One of the first researchers to study motivation b 1943 c Brandeis University psychology professor d Needs are never completely satisfied e Our actions are aimed at fulfilling the quotdeprivedquot needs the needs that remain unsatisfied at any point in time Alderfer s ERG Theory Existence Rela tedness amp Growth 1 ERG Theory assumes that three basic needs influence behaviorexistence relatedness and growth a Unlike Maslow s theory ERG theory suggests behavior is motivated by three needs not five and that more than one need may be activated at a time than activated in a stair step hierarchy 2 Clayton Alderfer in late 1960 s 3 The Three Kinds of Needs lowest to highest a Existence Needs are the desire for physiological and matter wellbeing b Relatedness Needs the desire to have meaningful relationships with people who are significant to us c Growth Needs the desire to grow as human beings and to use our abilities to their fullest potential 4 FrustrationRegression Component if higherlevel needs are frustrated then we will seek more intensely to fulfill our lowerlevel needs 5 Using the ERG Theory to Motivate Employees a Individual and cultural differences influence our need states b People are motivated by different needs at different times in their lives which suggest that managers should customize their reward and recognition programs to meet employees varying needs McClelland s Acquired Needs Theory Achievement Affiliation amp Power 1 David McClelland a Wellknown psychologist b Investigated needs for affiliation and power as a consequence c Believed we are not born with our needs rather we learn from the culture and our life experiences 2 Acquired Needs Theory which states that three needsachievement affiliation and power are major motives determining people s behavior in the workplace managers are encouraged to recognize three needs in themselves and others and to attempt to create work environments that are responsive to them 3 The Three Needs a Need for achievementquotI need to excel at tasks i Do something better or more efficiently to solve problems to achieve excellence in challenging tasks b Need for affiliationquotI need close relationships i Friendly and warm relations with other people c Need for powerquotI need to control others i Be responsible for other people to influence their behavior or to control them ii Two types 1 Personal power negative expressed in the desire to dominate others and involves manipulating people for one s own gratification 2 Institutional power expressed in the need to solve problems that further organizational goals 4 Using Acquired Needs Theory to Motivate Employees a Need for achievement i High need for achievement you are happy with accomplishment ofa task being its own reward don t mind of even prefer working alone and are willing to take moderate risks would prefer doing the kind of work that offers feedback on performance challenging but achievable goals and individual responsibility for results excel in technical fields requiring creativity and individual results b Need for power i High need for power you enjoy being in control of people and events and being 0 39 Ifor this I quot quot39 our r would probably be for work that allows you to control or have an effect on people and be publicly recognized for your accomplishments c Need for affiliation i High need for affiliation you seek social approval and satisfying personal relationships you may not be the most effective manager because at times you will have to make decisions that will make people resent you you tend to prefer work such as sales that provides for personal relationships and social approval Herzberg s TwoFactor Theory From Dissatisfying Factors to Satisfying Factors 1 Frederick Herzberg a Developed twofactor theory as a result of a landmark study of 203 accountants and engineers who were interviewed to determine the factors responsible for job satisfaction and dissatisfaction 2 TwoFactor Theory proposed that work satisfaction and dissatisfaction arise from two different factors work satisfaction from motivating factors and work dissatisfaction from hygiene factors 3 Hygiene Factors versus Motivating Factors a Hygiene Factors associated with job dissatisfaction such as salary working conditions interpersonal relationships and company policyall of which affect the job context in which people work i Lowerlevel needs ii Pay amp security working conditions interpersonal relationships company policy supervisors b Motivating Factors aka 39 39 Iwith job 39 f 39 such as quot U 39 39 I quot quot39 and 39 ullofwhich affect the job content or the rewards of work performance i Higher level needs ii Achievement recognition work itself responsibility advancement amp growth 4 Using TwoFactor Theory to Motivate Employees a First remove dissatisfaction hygiene factors as best as you can then spur motivation using motivating factors to make job satisfaction higher 123 Process Perspectives on Employee Motivation Terms 1 Process Perspectives concerned with the thought processes by which people decide how to act how employees choose behavior to meet their needs a Equity Theory b Expectancy Theory c GoalSetting Theory Equity Theory How Fairly Do You Think You re Being Treated in Relation to Others 1 Equity Theory focuses on employee perceptions as to how fairly they think they are being treated compared with others 2 J Stacy Adams psychologist employees are motivated to see fairness in the rewards they expect for task performance employees are motivated to resolve feelings of injustice 3 The Elements of Equity Theory Comparing Your Inputs amp Outputs with Those of Others a InputsquotWhat do you think you re putting into the jobquot i People perceive that they give their organization time effort training experience intelligence creativity seniority status b Outputs or rewardsquotWhat do you think you re getting out of the jobquot i Rewards people receive from organization pay benefits praise recognition bonuses promotions status perquisites c ComparisonquotHow do you think your ratio of inputs and rewards compares with those of othersquot 39 People compare the ratio of their own outcomes to the inputs against the ratio of someone else s outcomes to inputs When employees compare these ratios with others in organization or others with similar jobs they are either satisfied that there is equity between the comparison or perceive there is inequity and start to act resentful and act to change the inequity 4 Using Equity theory to Motivate Employees a Employee perceptions are what count i The most important result of research on equity theory is no matter how fair managers think the organization s policies procedures and reward systems are each employee s perception of those factors is what counts b Employee participation helps i Managers benefit by allowing employees to participate in important decisions c Having an appeal process i When employees are able to appeal decisions affecting their welfare it promotes the belief that management treats them fairly 5 Some Ways Employees try to reduce inequity a They will reduce their inputs b They will try to change the outputs or rewards they receive c They will distort the inequity d They will change the object of comparison e They will leave the situation Expectancy Theory How Much Do You Want amp How Likely Are You to Get it 1 Expectancy Theory suggests that people are motivated by two things a How much they want something b How likely they think they are to get it c In other words assuming they have choices people will make the choice that promises them the greatest reward if they think they can get it 2 Victor Vroom a You will do what you can when you want to b Motivation involves the relationship between your effort your performance and the desirability of the outcomes of your performance 3 The Three Elements Expectancy Instrumentality Valence a Expectancy the belief that a particular level of effort will lead to a particular level of performance llwill I be able to perform at the desired level on a taskquot i Aka efforttoperformance expectancy b Instrumentality the expectation that successful performance of the task will lead to the outcome desired llwhat outcome will I receive if I perform at this levelquot i Aka performancetoreward expectancy c Valence is value the importance a worker assigns to the possible outcome or reward llhow much do I want the outcome d For motivation to be high you must have high levels ofall three elements 4 Using Expectancy Theory to Motivate Employees a What rewards do your employees value i Get to know your employees and determine what rewards they value b What are the job objectives and the performance level you desire i Clearly define the performance objectives and determine what performance level or behavior you want so that you can tell your employees what they need to do to attain rewards c Are the rewards linked to performance i Employees must be aware that X performance within Y period will result in 2 kinds of rewards d Do employees believe you will deliver the right rewards for the right performance i Your employees must believe that you have the power ability and the will to give them the rewards you promise for the performance you are requesting GoalSetting Theory Objectives Should Be Specific amp Challenging but Achievable 1 GoalSetting Theory suggests that employees can be motivated by goals that are specific and challenging but achievable a Gary Latham amp Edwin Locke psychologists i It is natural for people to set and strive for goals however the goalsetting process is useful only if people understand and accept the goals 2 Four Elements of GoalSetting Theory a Goals should be specific i Need to be quantitative to effect motivation levels b Goals should be challenging i Don t set goals a lot of people can reach ii Each person should have a unique set of challenging goals c Goals should be achievable i People give up when they feel the goal is impossible ii Make sure people have additional training if necessary to achieve goals d Goals should be linked to action plans i An action plan outlines the activities or tasks that need to be accomplished in order to obtain a goal 3 Goal an objective that a person is trying to accomplish through his or her efforts 4 Using GoalSetting Theory to Motivate Employees a Make sure goals follow SMART specific measurable attainable resultsoriented target dates b Make sure employees have abilities and resources to accomplish goals c Give feedback so that employees know of their progress d Reward people for doing what they set out to do 124 lob Design Perspectives on Motivation Terms 1 Job Design 1the division of an organization s work among its employees and 2 the application of motivational theories to jobs to increase satisfaction and performance a Tradition way is to fit people to jobs i Based on assumption that people will gradually adapt to any work situation jobs must still be tailored so that nearly anyone can do them assembly line jobs and routine task jobs b Modern way is to fit jobs to people 2 Job Simplification the process of reducing the number of tasks a worker performs a When a job is stripped down to its simplest elements it enables a worker to focus on doing more of the same task thus increasing employee efficiency and productivity b Especially useful when designing jobs for mentally disadvantaged workers c However research shows that simplified repetitive jobs lead to job dissatisfaction poor mental health and a low sense ofaccomplishment and personal growth Fitting Jobs to People 1 Fittingjobs to people a Based on the assumption that people are underutilized at work and that they want more variety challenges and responsibility b This philosophy from Herzberg theory and is one of the reasons for the popularity of work teams in the US c How can we make the work most compatible with the worker so as to produce both high performance and high job satisfaction Leads to job enlargement and job enrichment 2 Job Enlargement Putting More Variety into a Job a Job Enlargement consists of increasing the number of tasks in a job to increase variety and motivation opposite ofjob simplification i Horizontal loading giving employees additional tasks of similar difficulty 3 Job Enrichment Putting More Responsibility amp Other Motivating Factors into a Job a Job Enrichment consists of building into a job such motivating factors as responsibility achievement recognition stimulating work and advancement practical application of Frederick Herzberg s twofactor motivatorhygiene theory of job satisfaction i Vertical Loading give r39 more r take on more I chores that would normally go to their supervisors The lob Characteristics Model Five 0 Attributes for Better Work Outcomes 1 J Richard Hackman amp Greg Oldham researchers the job characteristics model of design is an outgrowth of job enrichment 2 Job Characteristics Model consists of a five core job characteristics that affect b three critical psychological states of an employee that in turn affect c work outcomesthe employee s motivation performance and satisfaction 3 Five Job Characteristics m Skill VarietyquotHow many different skills does your job requirequot i Extent to which a job requires a worker to perform all the tasks needed to complete the job from beginning to end Task IdentityquotHow many different tasks are required to complete the workquot i Extent to which a job requires a worker to perform all the tasks needed to complete the job from beginning to end Task SignificancequotHow many other people are affected by your jobquot i Extent to which a job affects the lives of other people whether inside or outside the organization AutonomyquotHow much discretion does your job give youquot i Extent to which a job allows an employee to make choices about scheduling different tasks and deciding how to perform them FeedbackquotHow much do you find out how well you re doingquot i Extent to which workers receive clear direct information about how well they are performing the job 4 How the Model Works a The previous five core characteristics affect a worker s motivation because they affect three critical psychological states meaningfulness of work responsibility for results knowledge of results b These psychological states fuel high motivation high performance high satisfaction and low absenteeism and turnover c Contingency Factors the degree to which a person wants personal and psychological development d Job design works when employees are motivated to be so they must have three attributes i Necessary knowledge and skill ii Desire for personal growth iii Context satisfactions right physical working conditions pay and supervision 5 Applying the Job Characteristics Model a Diagnose the work environment to see whether a problem exists i Hackman and Oldham developed a selfreport instrument for managers to use called the job diagnostic survey ii Will indicate whether an individual s socalled motivating potential score is high or low amount of internal work motivation associated with a specific job b Determine whetherjob redesign is appropriate i If a person s MPS score is low and attempt should be made to determine which of the core job characteristics is causing the problem ii Decide whether job redesign is appropriate for a given group of employees iii Job design is most likely to work in a participative environment in which employees have the necessary knowledge and skills c Consider how to redesign the job i Increase those core job characteristics that are lower than national norms 57 Squot 53 5 125 Reinforcement Perspectives on Motivation TermPeople 1 Edward L Thorndike amp BF Skinner a Pioneered reinforcement perspective b Concerned with how the consequences of a certain behavior affect that behavior in the future c Skinner was father of operant conditioning i Operant Conditioning process of controlling behavior by manipulating its consequences d Thorndike s law of effect i Law of Effect states that behavior that results in a pleasant outcome is likely to be repeated and behavior that results in unpleasant outcomes is not likely to be repeated 2 Reinforcement Theory which attempts to explain behavior change by suggesting that behavior with positive consequences tends not to be repeated a Behavior Modification use of reinforcement theory to change human behavior The Four Types of Reinforcement Positive Negative Extinction amp Punishment 1 Reinforcement is anything that causes a given behavior to be repeated or inhibited 2 Positive Reinforcement Giving Rewards a Positive Reinforcement the use of positive consequences to encourage desirable behavior 3 Negative Reinforcement Avoiding Unpleasantness a Negative Reinforcement is the removal of unpleasant consequences following a desired behavior 4 Extinction Withholding Rewards a r 39 39 is the 39 39 39 39 quot Uor 39 39 39 39of positive rewards for desirable behavior so that the behavior is less likely to occur in the future 5 Punishment Applying Negative Consequences a Punishment is the application of negative consequences to stop or change undesirable behavior Using Reinforcement to Motivate Employees 1 Positive Reinforcement a Reward only desirable behavior b Give rewards as soon as possible c Be clear about what behavior is desired amp what they must do to earn rewards d Have different rewards and recognize individual differences 2 Punishment a Punish only undesirable behavior b Give reprimands or disciplinary actions as soon as possible c Be clear about what behavior is undesirable d Administer punishment in private e Combine punishment and positive reinforcement 126 Using Compensation amp Other Rewards to Motivate Motivation amp Compensation 1 Characteristics of the Best Incentive Compensation Plans a b C d Rewards must be linked to performance and be measurable Rewards must satisfy individual needs Rewards must be agreed on by manager and employees Rewards must be believable and achievable by employees 2 Popular Incentive Compensation Plans a b C d e f Pay for Performance i Pay for Performance bases pay on one s results aka merit pay 1 Different salaried employees might get different pay raises and other rewards depending on their overall job performance Piece Rate in which employees are paid according to how much output they produce Sales Commission which sales representatives are paid a percentage of the earnings the company made from their sales Bonuses cash rewards given to employees who achieve specific performance objectives Profit Sharing quot quot 39 to r39 ofa r g of the company s profits pre tax Gainsharing the distribution of savings or quotgainsquot to groups of employees who reduced costs and increased measurable productivity Stock Options certain employees are given the right to buy stock at a future date for a discounted price Pay for Knowledge ties employee pay to the number of jobrelevant skills or academic degrees they earn aka skillbased pay Nonmonetary Ways of Motivating Employees PPE J 57 Squot M The need for worklife balance The need to expand skills The need to matter Other incentives a Thoughtfulness the value of being nice Worklife benefits i Programs used by employers to increase productivity and commitment by removing certain barriers that make it hard for people to strike a balance between their work and personal lives Surroundings i Cubicle stifles creativity and morale of many workers Skillbuilding amp Educational Opportunities Sabbaticals Study Guide Chapters 1 5 Chapter 1 I De nition of Management Differences between Efficiency and Effectiveness Value of Management 11 The Big Picture Definition of Competitive Advantage 4 parts Diversity Globalization Technology Ethics Sustainability definition 111 Four Functions of Management Name the four understand all four PLOC IV Levels of Management Three levels what happens at each level What is functional areas V Roles of Management Mintzberg Three types of managerial roles 10 roles within that Know the three main roles examples on the rest VI What is Entrepreneurship VII Skills for Today s Managers Technical Conceptual Human Chapter 2 I Evidencebased management 11 Scientific Management Taylor and Gilbreth Soldiering Four principles III Administrative management Fayol and Weber What is bureaucracy Problems with classical perspectives IV Behavioral Viewpoint Munsterberg Follett and Mayo Power sharing Hawthome Effect V Human Relations Maslow and McGregor Hierarchy of Needs Theory X vs Theory Y VI Quantitative Approach Operations management TQM Assurance and Control VII Systems Viewpoint Open vs Closed Four Parts of a System VIII Learning Organizations What is knowledge How to build Chapter 3 1 Stakeholder Analysis What is a stakeholder Know the three rings in detail intemalextemal General environment PEST II De ne Ethics Four Approaches for Ethical Dilemmas SarbanesOXley How can Organizations promote Ethics 111 Corporate Social Responsibility Carroll s CSR Pyramid Green Energy and Sustainability Philanthropy IV Diversity De nition The diversity wheel four layers Trends in diversity 7 what is glass ceiling underemployed Barriers to Diversity 7 ethnocentrism etc Chapter 4 I Globalism De ne Positive and negative effects Technological advancements Geocentric ethnocentric parochial polycentric etc 11 Going Global WHY see items on page 112113 HOW exporting Joint ventures alliances etc 111 Barriers to Trade Protectionism tariffs quotas etc IV Key information about global management Organizations IMF WTO etc Trading PartnersBlocs V Cultural Differences De ne Hofstede know all four GLOBE project what are the differences with this and Hofstede Cultural Variations Chapter 5 1 Planning De ne Planning Bene ts of Planning Miles and Snow Typology II Fundamentals MissionVision Three levels of planning SMART Goals Plans policies procedures standing plans etc 111 MBO De ne How to do it IV Planning Cycle Chapter 6 Strategic Planning I Strategy Overview A De nitions strategy strategic management B Why is Strategy important C Three principles of Value II Strategic Management Process A Mission Grand Strategies 3 Formulate Implement Control B SWOT analysis C StrenghtsWeakness vs OpportunitiesThreats D Forecasting Trends Scenario Planning III Five Forces Analysis IV Porter s Generic Competitive Strategies V Single Product vs Diversi cation A Related vs Unrelated B Synergy VI BCG Matrix VII Skim pp 184186 Chapter 7 Individual and Group Decision Making I Classical DecisionMaking A Rational vs NonRational DecisionMaking B Problems with the Rational Model C Incremental and Intuitive Model II EvidenceBased DecisionMaking A Seven Principles don t memorize B Analytics III DecisionMaking Styles A Value Orientation and Tolerance for Ambiguity B Four types see matrix on p 210 IV Ethical DecisionMaking V Overcoming Barriers to DecisionMaking A Four ineffective reactions B Three effective reations C Six DecisionMaking Biases VI Group DecisionMaking A Advantages and Disadvantages B Participative Management C Consensus D ProblemSolving Techniques Chapter 8 Organizational Culture and Structure I Culture A Four types of Culture page 237 B Three levels of Culture C How employees Learn Culture II Enhancing economic interests A Strength Fit Adapative B Skim why cultures become embedded III Organization Types A Organization Chart B Hierarchy vs Specialization C Read 249251 for terms like 1 Delegation 2 Line vs Staff 3 Centralized vs Decentralized IV Structures A Functional B Divisional see different types C Matrix structure unity of command D TeamBased E Network structure V Contingency Design A Burns and Stalker don t worry about names B Lawrence and Lorsch don t worry about names C Life Cyle Chapter 9 Human Resource Management I Human Resource Managament A Elements of HRM B Strategic HRM C What is humansocial capital II Understanding Current Employee needs A Terms B Human Resource Inventory C Legal Stuff skim p 277 7 try to know one place D Discrimination vs Affirmative Action E Sexual Harrassment l Quid pro quuo 2 Hostile Environment III Recruitment and Selection A External vs Internal B Different Interviewing C Various Tests and Orientation IV Performance Appraisals A Different Types B Who should provide the exam


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