Chapter 10 Summary

Foundations of Organizational Design

#1# Designing Organizational Structure

Organizing : arranging and structuring work to accomplish organizational goals

Organizational structure : formal arrangement of jobs within an organization

Organizational chart : the visual representation of an organizations structure

Organizational design : creating or changing an organizations structure

6 key elements in Organizational Design

a. Work specialization

Dividing work activities into separate job tasks

It helps employees to be more efficient

b. Departmentalization

The basis of which jobs are grouped together

The five common forms of departmentalization

1. Functional departmentalization
2. Geographical departmentalization
3. Product departmentalization
4. Process departmentalization
5. Customer departmentalization

Cross functional team : a work team composed of individuals from various functional
specialties

c. Chain of command

The line of authority extending from upper organizational levels to the lowest levels, which
clarifies who reports to whom

Authority : the rights inherent in a managerial position to tell people what to do and to
expect them to do it

Type of Authority :
1. Line Authority : authority that entitles a manager to direct the work of an employee
2. StaffAuthority : positions with some authority have been created to support, assist,
and advise those holding the authority

Responsibility - the obligation or expectation to perform.

Unity of Command - the concept that a person should have one boss and should report only
to that person

d. Span of control

The number of employees who can be effectively and efficiently supervised by a manager.

e. Centralization and decentralization

Centralization - the degree to which decision making is concentrated at upper levels in the
organization.

This is common in organizations in which top managers make all the decisions and lower-
level employees simply carry out those orders.

Decentralization - when an organization relegates decision making to managers who are

closest to the action.

f.

Employee Empowerment : increasing the decision-making authority (power) of employees

Formalization

Formalization - the degree to which jobs within the organization are standardized and the
extent to which employee behavior is guided by rules and procedures.

Highly formalized jobs offer little discretion over what is to be done.

Low formalization means fewer constraints on how employees do their work.

#2# Mechanistic & Organic Organization

Mechanistic organization : the natural result of combining the six elements of structure

Organic organization : a highly adaptive reform that is as loose and flexible as the mechanistic organization is
rigid and stable

#3# Contingency Factors Affecting Structural Coice

Structural decisions are influenced by:

1. Overall strategy of the organization
2. Size of the organization
3. Technology use employed by the organization
4. Degree of environmental uncertainty

Strategy Frameworks:
1. Innovation : pursuing competitive advantage through meaningful and unique innovations favors an
organic structuring

2. Cost minimization : focusing on tightly controlling costs requires a mechanistic structure for the
organization

Strategy and Structure

Achievement of strategic goals is facilitated by changes in organizational structure that accommodate and
support change.

Size and Structure

As an organization grows larger, its structure tends to change from organic to mechanistic with increased
specialization, departmentalization, centralization, and rules/regulations.

Technology and Structure

Organizations adapt their structures to their technology.

Woodwards classification of firms based on the complexity of the technology employed:

1. Unit production of single units or small batches
2. Mass production of large batches of output
3. Process production in continuous process of outputs

Routine technology = mechanistic organizations

Non-routine technology = organic organizations

Environmental Uncertainty and Structure

Mechanistic organizational structures tend to be most effective in stable and simple environments.

The flexibility of organic organizational structures is better suited for dynamic and complex
environments.

#4# Traditional Organizational Design

Simple structure

Low departmentalization, wide spans of control, centralized authority, little formalization

Functional structure

Departmentalization by function

Operations, finance, marketing, human resources, and product research and development

Divisional structure

Composed of separate business units or divisions with limited autonomy under the
coordination and control of the parent corporation

Chapter 11 Summary

Contemporary Organizational Design

#1# Contemporary Organizational Design

A. Team Structure

Team Structure - an organizational structure in which the entire organization is made up of work teams

B. Matrix & Project Structure

Matrix Structure - an organizational structure that assigns specialists from different functional departments
to work on one or more projects

Project Structure - an organizational structure in which employees continuously work on projects

C. Boundaryless Organization

Boundaryless Organization - an organization whose design is not defined by, or limited to, the horizontal,
vertical, or external boundaries imposed by a predefined structure

What are the boundaries?

1. External : the boundaries that separate the organization from its customers, suppliers, and
stakeholders
2. Internal : horizontal ones imposed by work specialization, and departmentalization ; vertical ones
that separate employees into organizational levels and hierarchies

To minimize or eliminate these boundaries, managers might use :

1. Virtual Organization - an organization that consists of a small core of full-time employees and
outside specialists temporarily hired as needed to work on projects.
2. Network Organization - an organization that uses its own employees to do some work activities and
networks of outside suppliers to provide other needed product components or work processes.

D. Learning Organization

Learning Organization - an organization that has developed the capacity to continuously learn, adapt, and
change

#2# Organizing for Collaboration

A. Internal Collaboration

Cross-functional team - a work team composed of individuals from various functional specialties.

Task force (or ad hoc committee) - a temporary committee or team formed to tackle a specific short-term
problem affecting several departments.

Communities of practice - groups of people who share a concern, a set of problems, or a passion about a
topic, and who deepen their knowledge and expertise in that area by interacting on an ongoing basis.

B. External Collaboration

Open innovation - opening up the search for new ideas beyond the organizations boundaries and allowing
innovations to easily transfer inward and outward.

Strategic partnerships - collaborative relationships between two or more organizations in which they
combine their resources and capabilities for some business purpose.

#3# Flexible Work Arrangements

Telecommuting - a work arrangement in which employees work at home and are linked to the workplace by
computer.

Compressed workweek - a workweek where employees work longer hours per day but fewer days per week

Flextime (or flexible work hours) - a scheduling system in which employees are required to work a specific
number of hours a week but are free to vary those hours within certain limits.

Job sharing - the practice of having two or more people split a full-time job.

#4# Contingent Workforce

Contingent workers - temporary, freelance, or contract workers whose employment is contingent upon
demand for their services.

Chapter 12 Summary

Human Resource Management

#1# The Human Resource Management Process

A. Why is HRM Important

As a significant source of competitive advantage

As an important strategic tool

Achieve competitive success through people by treating employees as partners

To improve organizational performance

People-oriented HR creates superior shareholder value

High performance work practices lead to both high individual and high organizational performance

High-performance work practices - work practices that lead to both high individual and high organizational
performance

B. External Factors That Affect the HRM process

Economys Effect

Labor union - an organization that represents workers and seeks to protect their interests through
collective bargaining

Legal Environment

Affirmative Action - organizational programs that enhance the status of members of protected
groups

Work councils - groups of nominated or elected employees who must be consulted when
management makes decisions involving personnel

Board representatives - employees who sit on a companys board of directors and represent the
interests of the firms employees

Demographic Trends

#2# Identifying and Selecting Competent Employees

Human resource planning - ensuring that the organization has the right number and kinds of capable people
in the right places and at the right times

HR planning consists of 2 steps :

1. Current assessment

Job analysis - an assessment that defines jobs and the behaviors necessary to perform them

Job description - a written statement that describes a job

Job specification - a written statement of the minimum qualifications that a person must
possess to perform a given job successfully

2. Meeting future HR needs

Determined by organizations mission, goals, and strategies

Recruitment & Decruitment

Recruitment - locating, identifying, and attracting capable applicants

Decruitment - reducing an organizations workforce

Selection

Selection - screening job applicants to ensure that the most appropriate candidates are hired

Type of Selection Tools :

1. Application form
2. Written tests
3. Performance-simulation tests
4. Interviews
5. Background investigations
6. Physical examination

Realistic Job Preview (RJP) - a preview of a job that provides both positive and negative information
about the job and the company

#3# Providing Employees With Needed Skills & Knowledge

Orientation - introducing a new employee to his or her job and the organization

Training : profession, mandatory, management training

#4# Retaining Competent, High Performing Employees

Performance management system - establishes performance standards that are used to evaluate employee
performance

Compensation & Benefits

Skill-based pay - a pay system that rewards employees for the job skills they can demonstrate

Variable pay - a pay system in which an individuals compensation is contingent on performance

#5# Contemporary Issues in HRM

Downsizing - the planned elimination of jobs in an organization

Sexual harassment - any unwanted action or activity of a sexual nature that explicitly or implicitly affects an
individuals employment, performance, or work environment

Family-friendly benefits - benefits that accommodate employees needs for worklife balance

Chapter 13 Summary

Groups & Teams

#1# Groups & Group Development

Group - two or more interacting and interdependent individuals who come together to achieve specific goals.

Formal groups
Work groups defined by the organizations structure that have designated work assignments and
tasks

Informal groups
Groups that are independently formed to meet the social needs of their members

Stages of Group Development :

1. Forming stage - the first stage of group development in which people join the group and then define
the groups purpose, structure, and leadership
2. Storming stage - the second stage of group development, characterized by intragroup conflict
3. Norming stage - the third stage of group development, characterized by close relationships and
cohesiveness.

4. Performing stage - the fourth stage of group development when the group is fully functional and
works on group task.
5. Adjourning - the final stage of group development for temporary groups during which group
members are concerned with wrapping up activities rather than task performance.











#2# Work Group Performance & Satisfaction

A. Group Structure

Role - behavior patterns expected of someone occupying a given position in a social unit.

Norms - standards or expectations that are accepted and shared by a groups members.

Groupthink - when a group exerts extensive pressure on an individual to align his or her opinion with that of
others

Status - a prestige grading, position, or rank within a group.

Social loafing - the tendency for individuals to expend less effort when working collectively than when
working individually.

Group cohesiveness - the degree to which group members are attracted to one another and share the
groups goals.

Conflict Management

Conflict - perceived incompatible differences that result in interference or opposition.

Traditional view of conflict - the view that all conflict is bad and must be avoided.

Human relations view of conflict - the view that conflict is a natural and inevitable outcome in any
group

Interactionist view of conflict - the view that some conflict is necessary for a group to perform
effectively.

Functional conflicts - conflicts that support a groups goals and improve its performance.

Dysfunctional conflicts - conflicts that prevent a group from achieving its goals.

Task conflict - conflicts over content and goals of the work.

Relationship conflict - conflict based on interpersonal relationships.

Process conflict - conflict over how work gets done.

#3# Turning Groups Into Effective Teams

Work teams - groups whose members work intensely on a specific, common goal using their positive synergy,
individual and mutual accountability, and complementary skills.Multidomestic corporation : one type of MNC
which decentralizes management and other decisions to the local country (reflects polycentric attitude). E.g.
Nestl

Problem-solving team - a team from the same department or functional area thats involved in efforts to
improve work activities or to solve specific problems.

Self-managed work team - a type of work team that operates without a manager and is responsible for a
complete work process or segment.

Cross-functional team - a work team composed of individuals from various functional specialties.

Virtual team - a type of work team that uses technology to link physically dispersed members in order to
achieve a common goal

Advantages In Using Teams

Teams outperform individuals.

Teams provide a way to better use employee talents.

Teams are more flexible and responsive.

Teams can be quickly assembled, deployed,

refocused, and disbanded.

Characteristics of Effective Teams

Have a clear understanding of their goals

Have competent members with relevant technical and interpersonal skills

Exhibit high mutual trust in the character and integrity of their members

Are unified in their commitment to team goals

Have good communication systems

Possess effective negotiating skills

Have appropriate leadership

Have both internally and externally supportive environments

#4# Current Challenges In Managing Teams

Social Network

The patterns of informal connections among individuals within groups.

The Importance of Social Networks

1. Relationships can help or hinder team effectiveness.
2. Relationships improve team goal attainment and increase member commitment to the team.

Chapter 14 Summary

Foundations Of Individual Behavior

#1# Focus & Goals Of Organizational Behavior

Behavior - the actions of people.

Organizational behavior - the study of the actions of people at work.

Focus Of Organizational Behavior :

1. Individual behavior : attitudes, personality, etc
2. Group behavior : norms, roles, team buildings, leadership, and conflict

3. Organizational aspects : structure, culture, HR policies and practices

Goals Of Organizational Behavior

The goals of OB are to explain, predict, and influence behavior

Employee productivity - a performance measure of both efficiency and effectiveness.

Absenteeism - the failure to show up for work.

Turnover - the voluntary and involuntary permanent withdrawal from an organization.

Organizational Citizenship Behavior (OCB) - discretionary behavior that is not part of an employees
formal job requirements, but which promotes the effective functioning of the organization.

Job satisfaction - an employees general attitude toward his or her job.

Workplace misbehavior - any intentional employee behavior that is potentially damaging to the
organization or to individuals within the organization.

#2# Attitudes & Job Performance

Attitudes - evaluative statements, either favorable or unfavorable, concerning objects, people, or events.

There are 3 types made up attitudes :

Cognitive component - that part of an attitude thats made up of the beliefs, opinions, knowledge, or
information held by a person.

Affective component - that part of an attitude thats the emotional or feeling part.

Behavioral component - that part of an attitude that refers to an intention to behave in a certain way
toward someone or something.

A. Job Satisfaction
how satisfied are the employees

B. Job Involvement & Organizational Commitment

Job involvement - the degree to which an employee identifies with his or her job, actively participates in it,
and considers his or her job performance to be important to self-worth.

Organizational commitment - the degree to which an employee identifies with a particular organization and
its goals and wishes to maintain membership in that organization.

Perceived organizational support - employees general belief that their organization values their
contribution and cares about their well-being.

C. Employee Engagement

Employee engagement - when employees are connected to, satisfied with, and enthusiastic about their jobs.

D. Attitudes & Consistency

how employees perform their attitudes consistently

E. Cognitive Dissonance Theory

Cognitive dissonance - any incompatibility or inconsistency between attitudes or between behavior and
attitudes.

F. Attitudes Survey

Attitude surveys - surveys that elicit responses from employees through questions about how they feel about
their jobs, work groups, supervisors, or the organization.

#3# Personality

Personality - the unique combination of emotional, thought, and behavioral patterns that affect how a
person reacts to situations and interacts with others.

MBTI popular test of knowing personality

Big Five Model - personality trait model that includes extraversion, agreeableness, conscientiousness,
emotional stability, and openness to experience.

Additional Personality Insights

Locus of control : the degree of which people believe that they are masters of their own fate

Machiavellianism - a measure of the degree to which people are pragmatic, maintain emotional
distance, and believe that ends justify means.

Self-esteem - an individuals degree of like or dislike for him/herself.

Self-monitoring - a personality trait that measures the ability to adjust behavior to external
situational factors.

Risk-taking

Other personality traits :

Proactive personality - a trait belonging to people who identify opportunities, show initiative, take
action, and persevere until meaningful change occurs.

Resilience - an individuals ability to overcome challenges and turn them into opportunities.

Emotions & EI

Emotions - intense feelings that are directed at someone or something.

Emotional Intelligence (EI) - the ability to notice and to manage emotional cues and information.

#4# Perception

Perception - a process by which we give meaning to our environment by organizing and interpreting sensory
impressions.

Attribution Theory - how the actions of individuals are perceived by others depends on what meaning
(causation) we attribute to a given behavior.

Internally caused behavior: under the individuals control

Externally caused behavior: due to outside factors

Fundamental attribution error - the tendency to underestimate the influence of external factors and
to overestimate the influence of internal or personal factors.

Self-serving bias - the tendency of individuals to attribute their successes to internal factors while
blaming personal failures on external factors.

Shortcuts Used In Judging Others

Assumed similarity - the assumption that others are like oneself.

Stereotyping - judging a person on the basis of ones perception of a group to which he or she
belongs.

Halo effect - a general impression of an individual based on a single characteristic.

#5# Learning

Learning - any relatively permanent change in behavior that occurs as a result of experience.

Almost all complex behavior is learned.

Learning is a continuous, life-long process.

The principles of learning can be used to shape behavior.

Theories of learning:

Operant conditioning

Social learning

Operant conditioning - a theory of learning that says behavior is a function of its consequences

Operant behavior: voluntary or learned behaviors

Behaviors are learned by making rewards contingent to behaviors.

Behavior that is rewarded (positively reinforced) is likely to be repeated.

Behavior that is punished or ignored is less likely to be repeated.

Social learning theory - a theory of learning that says people can learn through observation and direct
experience.

Attentional: the attractiveness or similarity of the model

Retention: how well the model can be recalled

Motor reproduction: the reproducibility of the models actions

Reinforcement: the rewards associated with learning the model behavior

Shaping behavior - the process of guiding learning in graduated steps using reinforcement or lack of
reinforcement.

Shaping methods:

Positive reinforcement: rewarding desired behaviors

Negative reinforcement: removing an unpleasant consequence once the desired behavior is

exhibited

Punishment: penalizing an undesired behavior

Extinction: eliminating a reinforcement for an undesired behavior

#6# Contemporary Issues

Managing Generational Differences in the Workplace

Gen Y: individuals born after 1978

Bring new attitudes to the workplace that reflect wide arrays of experiences and
opportunities

Want to work, but dont want work to be their life

Challenge the status quo

Have grown up with technology

Chapter 15 Communication

What is Communication?

Communication - the transfer and understanding of meaning.
Transfer means the message was received in a form that can be interpreted by the receiver.
Understanding the message is not the same as the receiver agreeing with the message.
Interpersonal Communication - communication between two or more people.
Organizational Communication - all the patterns, networks, and systems of communications within an
organization.

Functions of Communication:
Control
Formal and informal communications act to control individuals behaviors in organizations.
Motivation
Communications clarify for employees what is to be done, how well they have done it, and what can be done to
improve performance.
Emotional Expression
Social interaction in the form of work group communications provides a way for employees to express
themselves.
Information
Individuals and work groups need information to make decisions or to do their work.

Interpersonal Communication
Communication process - the seven elements involved in transferring meaning from one person to another.
Noise - any disturbances that interfere with the transmission, receipt, or feedback of a message.
Message - a purpose to be conveyed.

Encoding - converting a message into symbols.

Channel - the medium a message travels along.
Decoding - retranslating a senders message.

Nonverbal Communication : communication transmitted without words.
Body language - gestures, facial configurations, and other body movements that convey meaning.
Verbal intonation - an emphasis given to words or phrases that conveys meaning.

Barriers to Communication
Filtering - the deliberate manipulation of information to make it appear more favorable to the receiver.
Information overload - occurs when information exceeds our processing capacity.
Jargon - specialized terminology or technical language that members of a group use to communicate among
themselves.












Active listening - listening for full meaning without making premature judgments or interpretations.
Formal communication - communication that takes place within prescribed organizational work arrangements.
Informal communication - communication that is not defined by the organizations structural hierarchy.

Direction of Communication
Downward communication - communication that flows downward from a manager to employees.
Upward communication - communication that flows upward from employees to managers.
Lateral communication - communication that takes place among any employees on the same organizational
level.
Diagonal communication - communication that cuts across work areas and organizational levels.

Organizational Communication Networks
Communication Networks - the variety of patterns of vertical and horizontal flows of organizational
communication.
Grapevine - the informal organizational communication network.

Workplace Design and Communication

Open workplaces - workplaces with few physical barriers and enclosures.

Ethical communication - communication that includes all relevant information, is true in every sense, and is
not deceptive in any way.

Current Communication Issues
Managing Communication in an Internet World
Legal and security issues
Inappropriate use of company e-mail and instant messaging
Loss of confidential and proprietary information due to inadvertent or deliberate dissemination or to hackers
Lack of personal interaction
Being connected is not the same as face-to-face contact
Difficulties occur in achieving understanding and collaboration in virtual environments

Communication and Customer Service
Communicating Effectively with Customers
Recognize the three components of the customer service delivery process:
The customer
The service organization
The service provider
Develop a strong service culture focused on the personalization of service to each customer.
Listen and respond to the customer.
Provide access to needed service information.

Chapter 16 Motivation

Motivation - the process by which a persons efforts are energized, directed, and sustained toward attaining a goal.

Early Theories of Motivation
Maslows Hierarchy of Needs
Hierarchy of needs theory - Maslows
theory
that human needs physiological, safety,
social,
esteem, and self-actualization form a sort
of
hierarchy.
Physiological needs - a persons needs
for
food, drink, shelter, sexual satisfaction, and
other
physical needs.
Safety needs - a persons needs for
security and protection from physical and
emotional harm.
Social needs - a persons needs for
affection, belongingness, acceptance, and
friendship.
Esteem needs - a persons needs for
internal factors (e.g., self-respect, autonomy,
and
achievement) and external factors (such as status, recognition, and attention).
Self-actualization needs - a persons need to become what he or she is capable of becoming.

McGregors Theories X and Y
Theory X - the assumption that employees dislike work, are lazy, avoid responsibility, and must be
coerced to perform.
Theory Y - the assumption that employees are creative, enjoy work, seek responsibility, and can
exercise self-direction.

Herzbergs Two-Factor Theory

Two-factor theory (motivation-hygiene theory) - the motivation theory that claims that intrinsic
factors are related to job satisfaction and motivation, whereas extrinsic factors are associated with job
dissatisfaction.
Hygiene factors - factors that eliminate job dissatisfaction, but dont motivate.
Motivators - factors that increase job satisfaction and motivation.

McClellands Three Needs Theory
Three-needs theory - the motivation theory that sites three acquired (non-innate) needs (achievement,
power, and affiliation) as major motives in work.
Need for achievement (nAch) - the drive to succeed and excel in relation to a set of standards.
Need for power (nPow) - the need to make others behave in a way that they would not have behaved
otherwise.
Need for affiliation (nAff) - the desire for friendly and close interpersonal relationships.

Contemporary Theories of Motivation
Goal-setting theory - the proposition that specific goals increase performance and that difficult goals, when
accepted, result in higher performance than do easy goals.
Self-efficacy - an individuals belief that he or she is capable of performing a task.
Reinforcement theory - the theory that behavior is a function of its consequences.
Reinforcers - consequences immediately following a behavior which increase the probability that the
behavior will be repeated.

Designing Motivating Jobs
Job design - the way tasks are combined to form complete jobs.
Job scope - the number of different tasks required in a job and the frequency with which those tasks are
repeated.
Job enlargement - the horizontal expansion of a job that occurs as a result of increasing job scope.
Job enrichment - the vertical expansion of a job that occurs as a result of additional planning and evaluation
of responsibilities.
Job depth - the degree of control employees have over their work.
Job characteristics model (JCM) - a framework for analyzing and designing jobs that identifies five primary
core job dimensions, their interrelationships, and their impact on outcomes.

Five Core Job Dimensions
1. Skill variety - the degree to which a job requires a variety of activities so that an employee can use a number
of different skills and talents.
2. Task identity - the degree to which a job requires completion of a whole and identifiable piece of work.
3. Task significance - the degree to which a job has a substantial impact on the lives or work of other people.
4. Autonomy - the degree to which a job provides substantial freedom, independence, and discretion to the
individual in scheduling work and determining the procedures to be used in carrying it out.
5. Feedback - the degree to which carrying out work activities required by a job results in the individuals
reception of direct and clear information about his or her performance effectiveness.


Redesigning Job Design Approaches
Relational perspective of work design - an approach to job design that focuses on how peoples tasks and jobs
are increasingly based on social relationships.
Proactive perspective of work design - an approach to job design in which employees take the initiative to
change how their work is performed.
High-involvement work practices - work practices designed to elicit greater input or involvement from
workers.

Equity Theory
Equity theory - the theory that an employee compares his or her jobs input-outcome ratio with that of
relevant others and then corrects any inequity.
Referents - the persons, systems, or selves against which individuals compare themselves to assess equity.
Distributive justice - perceived fairness of the amount and allocation of rewards among individuals.

Expectancy theory - the theory that an individual tends to act in a certain way based on the expectation that the act
will be followed by a given outcome and on the attractiveness of that outcome to the individual.
Expectancy Relationships
o Expectancy (effort-performance linkage)
The perceived probability that an individuals effort will result in a certain level of
performance.
o Instrumentality
The perception that a particular level of performance will result in attaining a
desired outcome (reward).
o Valence
The attractiveness/importance of the performance reward (outcome) to the
individual.

Current Issues in Motivation
Cross-Cultural Challenges

Motivational programs are most applicable in cultures where individualism and

achievement are cultural characteristics.
Uncertainty avoidance of some cultures inverts Maslows needs hierarchy.
The need for achievement (nAch) is lacking in other cultures.
Collectivist cultures view rewards as entitlements to be distributed based on individual needs, not individual
performance.

Motivating Unique Groups of Workers
1. Motivating a Diverse Workforce
o Motivating a diverse workforce through flexibility:
Men desire more autonomy than do women.
Women desire learning opportunities, flexible work schedules, and good interpersonal
relations.
o Compressed workweek
Longer daily hours, but fewer days
o Flexible work hours (flextime)
Specific weekly hours with varying arrival, departure, lunch and break times around certain
core hours during which all employees must be present
o Job Sharing
Two or more people split a full-time job
o Telecommuting
Employees work from home using computer links
2 Motivating Professionals
Characteristics of professionals
Strong and long-term commitment to their field of expertise
Loyalty is to their profession, not to the employer
Have the need to regularly update their knowledge
Dont define their workweek as 8:00 am to 5:00 pm.
3 Motivating Contingent Workers
Opportunity to become a permanent employee
Opportunity for training
Equity in compensation and benefits
4 Motivating Low-Skilled, Minimum-Wage Employees
Employee recognition programs
Provision of sincere praise

Designing Appropriate Rewards Programs
Open-book management - a motivational approach in which an organizations financial statements (the
books) are shared with all employees.
Employee recognition programs - programs based on personal attention and expression of interest, approval,
and appreciation for a job well done.
Pay-for-performance programs - variable compensation plans that pay employees on the basis of some
performance measure.

Chapter 17
o

Leadership
Objective 17.1 Define Leadership and Leader
17.1.1
Leader

: Someone who can influence others and who has managerial authority.

Leadership

: What leaders do; the process of influencing a group to achieve goals.


Objective 17.2 Compare and Contrasr early theories of leadership
1. Trait Theories (1920s-1930s)
a. Research focused on identifying personal characteristics that differentiated leaders from non-leaders
was unsuccessful.
b. Later research on the leadership process identified seven traits associated with successful leadership:
i. Drive, the desire to lead, honesty and integrity, self-confidence, intelligence, job-relevant
knowledge, and extraversion
2. Behavioral Theories
a. University of Iowa Studies (Kurt Lewin)
Identified three leadership styles:
Autocratic style: centralized authority, low participation
Democratic style: involvement, high participation, feedback
Laissez faire style: hands-off management
Research findings: mixed results
- No specific style was consistently better for producing better performance.
- Employees were more satisfied under a democratic leader than under an
autocratic leader.
b. Ohio State Studies
Identified two dimensions of leader behavior:
- Initiating structure: the role of the leader in defining his or her role and the
roles of group members.
- Consideration: the leaders mutual trust and respect for group members
ideas and feelings.

c. Mixed Result of Ohio State Studies
High consideration/high structure leaders generally, but not always, achieved high scores on
group task performance and satisfaction.
Evidence indicated that situational factors appeared to strongly influence leadership
effectiveness.
d. University of Michigan Studies
Identified two dimensions of leader behavior:
Employee oriented: emphasizing personal relationships
Production oriented: emphasizing task accomplishment



Research findings:
Leaders who are employee oriented are strongly associated with high group
productivity and high job satisfaction.

e. Managerial Grid
Appraises leadership styles using two dimensions:
Concern for people
Concern for production
Places managerial styles in five categories:
Impoverished management
Task management
Middle-of-the-road management

Country club management

Team management

3. Contingency Theories of Leadership
a. The Fiedler Model
Proposes that effective group performance depends upon the proper match between the leaders
style of interacting with followers and the degree to which the situation allows the leader to control
and influence.
Assumption:
o A certain leadership style should be most effective in different types of situations.
o Leaders do not readily change leadership styles.
Matching the leader to the situation or changing the situation to make it
favorable to the leader is required.
Least-preferred co-worker (LPC) questionnaire
o Determines leadership style by measuring responses to 18 pairs of contrasting
adjectives
High score: a relationship-oriented leadership style
Low score: a task-oriented leadership style
Situational factors in matching leader to the situation:
Leader-member relations
Task structure
Position power

b. Hersey and Blanchards Situational Leadership Theory (SLT)
Argues that successful leadership is achieved by selecting the right leadership style which is
contingent on the level of the followers readiness
Acceptance: leadership effectiveness depends on whether followers accept or reject
a leader
Readiness: the extent to which followers have the ability and willingness to
accomplish a specific task
Leaders must relinquish control over and contact with followers as they become more
competent.
Creates four specific leadership styles incorporating Fiedlers two leadership dimensions:
Telling: high task-low relationship leadership
Selling: high task-high relationship leadership
Participating: low task-high relationship leadership
Delegating: low task-low relationship leadership
Four stages of follower readiness:
R1: followers are unable and unwilling
R2: followers are unable but willing
R3: followers are able but unwilling
R4: followers are able and willing


c. Path Goal Model
States that the leaders job is to assist his or her followers in attaining their goals and to
provide direction or support to ensure that their goals are compatible with those of the
organization
Depending on the situation, leaders assume different leadership styles at different times:
Directive leader
Supportive leader

Participative leader
Achievement oriented leader

4. Contemporary Views of Leadership
a. Transactional Leadership
Leaders who guide or motivate their followers in the direction of established goals by clarifying role
and task requirements.
b. Transformational Leadership
Leaders who inspire followers to transcend their own self-interests for the good of the organization
by clarifying role and task requirements.
c. Charismatic Leadership
An enthusiastic, self-confident leader whose personality and actions influence people to
behave in certain ways.
Characteristics of charismatic leaders:
Have a vision
Are able to articulate the vision
Are willing to take risks to achieve the vision
Are sensitive to the environment and follower needs
Exhibit behaviors that are out of the ordinary
d. Visionary Leadership
A leader who creates and articulates a realistic, credible, and attractive vision of the future
that improves upon the present situation.
Visionary leaders have the ability to:
Explain the vision to others
Express the vision not just verbally but through behavior
Extend or apply the vision to different leadership contexts
e. Team Leadership
Team Leadership Characteristics:
Having patience to share information
Being able to trust others and to give up authority
Understanding when to intervene
Team Leaders Job
Managing the teams external boundary
Facilitating the team process
Includes coaching, facilitating, handling disciplinary problems, reviewing
team and individual performance, training, and communication

17.5 Leadership Issues in The Twenty First Century

a. Managing Power

Legitimate power
The power a leader has as a result of his or her position.
Coercive power
The power a leader has to punish or control.
Reward power
The power to give positive benefits or rewards.
Expert power
The influence a leader can exert as a result of his or her expertise, skills, or knowledge.
Referent power
The power of a leader that arises because of a persons desirable resources or admired
personal traits.

b. Developing Trust
Credibility (of a Leader)
The assessment of a leaders honesty, competence, and ability to inspire by his or her followers

Trust
The belief of followers (and others) in the integrity, character, and ability of a leader
Dimensions of trust: integrity, competence, consistency, loyalty, and openness
Is related to increases in job performance, organizational citizenship behaviors, job satisfaction, and
organization commitment

c. Empowering Employees

Increasing the decision-making discretion of workers such that teams can make key operating
decisions in developing budgets, scheduling workloads, controlling inventories, and solving quality
problems.

d. Leading Across Cultures

Follower characteristics

Job characteristics

Experience, training, professional orientation, or the need for independence

Routine, unambiguous, and satisfying jobs

Organization characteristics

Explicit formalized goals, rigid rules and procedures, or cohesive work groups

CHAPTER 18

Foundations Of Control

Objective 18.1 : Explain the nature and importance of control

Controlling:
the process of monitoring, comparing, and correcting work performance.
The Purpose of Control
To ensure that activities are completed in ways that lead to the accomplishment of organizational
goals.
As the final link in management functions:
Planning
Controls let managers know whether their goals and plans are on target and what future actions to take.
Empowering employees
Control systems provide managers with information and feedback on employee performance.
Protecting the workplace
Controls enhance physical security and help minimize workplace disruptions.

Objective 18.2 : Describe the three steps in the control process

Control process : a three-step process of measuring actual performance, comparing actual performance
against a standard, and taking managerial action to correct deviations or inadequate standards.
The Process of Control
Measuring actual performance
Comparing actual performance against a standard
Taking action to correct deviations or inadequate standards

Sources of Information (How)

Personal observation
Statistical reports
Oral reports
Written reports

Control Criteria (What)

Employees

Satisfaction

Turnover

Absenteeism

Budgets

Costs

Output

Sales

Taking Managerial Action

Immediate corrective action: corrective action that corrects problems at once in order to get
performance back on track.
Basic corrective action: corrective action that looks at how and why performance deviated before
correcting the source of deviation.

Objective 18.3 : Explain how organizational performance is measured

Productivity
output.

: the amount of goods or services produced divided by the inputs needed to generate that

Organizational effectiveness
goals are being met.

: a measure of how appropriate organizational goals are and how well those

a. Types of Control:
Feed forward control : control that takes place before a work activity is done.
Concurrent control

: control that takes place while a work activity is in progress.

Management by walking around

interacting directly with employees.
Feedback control

: a term used to describe when a manager is out in the work area

: control that takes place after a work activity is done.

b. Balanced Scorecard
Balanced scorecard : a performance measurement tool that examines more than just the financial
perspective.
a. Measures a companys performance in four areas:
i. Financial
ii. Customer
iii. Internal processes
iv. People/innovation/growth assets
c. Information Controls
Management information system (MIS) - a system used to provide management with needed information
on a regular basis.
i. Data
: an unorganized collection of raw, unanalyzed facts (e.g., an unsorted list of
customer names).
ii. Information
: data that has been analyzed and organized such that it has value
and relevance to managers.
d. Benchmarking of Best Practices
Benchmarking
: the search for the best practices among competitors or non-competitors that lead
to their superior performance.
Benchmark : the standard of excellence to measure and compare against.

e. Customers Interactions
Service profit chain : the service sequence from employees to customers to profit.
Corporate governance
: the system used to govern a corporation so that the interests of corporate
owners are protected.

Describe tools used to measure organizational

performance
Discuss contemporary issues in control